Image: Niira Radia
In a season for scandal, allegations of large scale corruption have captured political India's attention. The instances to which such allegations relate are many, varying from the sale of 2G spectrum and the mobilisation and/or disposal of land and mining resources to purchases made as part of large and concentrated public expenditures (as in the case of the Commonwealth Games). If even partly true, these allegations that corruption may have increased in scale, overwhelm the evidence of small scale corruption among petty bureaucrats and local government functionaries.
Associated with such instances of the possible misuse of powers held by state functionaries for substantial private gain is huge profit for some of the richest individuals and for leading domestic and foreign business groups. This leads to surplus accumulation among two groups. The first is among those serving the state apparatus in high positions. The suspicion that this could be occurring is strengthened by the growing nexus between politics and business and the huge increases over time in the assets reported by individuals contesting elections to parliament and the legislatures. The second set of potential beneficiaries consists of the business groups which derive gains from the purchase of pecuniary benefits for a small price. If we go by the Comptroller and Auditor General's estimate, the loss of revenues to the state from the mispricing of 2G spectrum alone is Rs. 1.76 lakh crore or close to 10 per cent of Gross Fixed Capital Formation in the economy in 2008-09. If a large share of that loss is being transferred to those acquiring spectrum it points to huge benefits.
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