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UREA SCAM


HISTORY OF THE SCAM
P.V. Prabhakar Rao, the youngest son of former Prime Minister P.V. Narasimha Rao has caused a major public disgrace or shame and especially at the time of his father's rise in the political career. The Enforcement department was however looking for the right evidence to file a charge sheet against him and was hunting for P.V. Prabhakar Rao for his illegal involvement in the Rs.133 crores urea scam in 1995. Though the Enforcement Department issued non bailable warrant against him he very cunningly dodged the arrest warrant against him. The best part of the scam was the Special Protection Group (SPG) cover which was provided for Prabhakar Rao where the SPG wouldn't say about his whereabouts which is against rule according to their blue book.The Special protection was given to him in spite of knowing that the Enforcement Directorate was investigating the urea scam and was trying to arrest him.


THE ENFORCEMENT DIRECTORATE (ED)
When the Enforcement Directorate (ED) made a sudden uniformed raid at his Mehboobnagar hideout near Hyderabad he was arrested by the police for the urea scam. A huge amount of about Rs 133-crore worth deal was signed by the Indian fertilizer department and a Turkish company which is supposed to deliver nearly two lakh tonnes of urea to India. So once the deal was signed and at a very short period the entire money of about Rs 133-crores was put in various accounts across the globe. But once the money was deposited the surprising fact that occurred was the disappearance of the Turkish firm from Turkey and finally no urea was delivered to India. So only after an incubation period of seven months, the scam was highlighted amidst the public. Also the prime accused of the Rs.133 crores scam was suspected to be the former prime minister's son, Prabhakar Rao, and former fertiliser minister Ram Lakhan Singh Yadav's son, Prakash Chandra Yadav.

LACK OF AUDIT CONTROLS AND SYSTEMIC REVIEW
Though there were enough evidences both the key suspects denied all the charges that were told against them. The investigation was getting very fast and furious on this issue and only after a week of thorough probing caught the whiff of the scammed money in flight. Further probing of the Rs 133-crore urea scam by the Central Bureau of Investigation along with other agencies like the Enforcement Directorate was geared up and the officials of the department of the External Affairs Ministry was forwarded to get in touch or look through the Indian mission in Ankara. As the department of the External Affairs Ministry was investigating about the existence of Karsan, the Turkish Company which is supposed to have supplied the two lakh tonnes of urea to India, they were very stunned with the findings. The firm accused of defrauding National Fertilizers Limited (NFL), and responsible for setting off the first major political crisis for the then new Government in New Delhi, was located in a very small place of half-a-room of a third-rate hotel in Ankara and also it existence and its forerunner's detail was not clearly pictured.

CENTRAL BUREAU OF INVESTIGATION AND THE ENFORCEMENT DEPARTMENT
UREA SCAM
The report submitted by the Central Bureau of Investigation and the Enforcement department was even more shocking when various details based on different grounds were gathered. Sambasiva Rao who was in custody related to the urea scam was one of the chief agent of Karsan and with the fax numbers got from him, it was revealed that Karsan's chief executive Tunkay Alankus had quit Ankara and set up a new company in Alma Ata, Kazakhstan. Also other than Sambhasiva Rao there were none other who was attached to Karsan firm situated in Ankara. Further informations which was revealed from this investigation was that Karsan was registered with the Turkish authorities in November 1988 and during its eight year period to trundling, there was a shift in the address for nearly three times. It was revealed by the officials of Turkey that Karsan which is supposed to have supplied two lakh tonnes of urea to India had no background relating to urea trade.

PEOPLE INVOLVED IN THE SCAM
UREA
Later the Central Bureau of Investigation had filed charge-sheets against nine persons namely C.K. Ramakrishnan, CMD of National Fertilisers Limited (NFL), D.S. Kanwar, NFL's executive director, M. Sambashiva Rao, Indian agent of the Turkish company Karsan, B. Sanjeeva Rao, nephew of Narasimha Rao, Prakash Yadav, son of former fertilisers minister Ram Lakhan Singh Yadav, businessman Mallesham Gaud and three Karsan officials. There was very little left to lay back on for the investgating team from various departments of the country had to be contingent on the Indians charged of accepting payoffs in the deal. But as time wore off, it became clearer that even that may not be easy. After investigations from all possible angles and the host of cross questioning done by the of officials of the Central Bureau of Investigation and the Enforcement Directorate it was very clear that two people were highlighted and among this was Prabhakar Rao.

CBI FILES A STATUS REPORT
It was only when an enraged court directed the CBI to file a status report that the Enforcement Directorate traced Prabhakar after which he was sent to 14-day judicial custody by the magistrate. It still remains as a mystery of how the Reserve Bank of India refrained from insisting firm conditions attached to such deals. In fact, the Swiss bank which received an invoice for making payment to Karsan, raised certain objections and sent it back. But there was no response either from NFL or the RBI and the SBI. The problem regarding the Rs.133 crores scam was numerous for there was a major political pressure that was involved in the scam where of the swindled money which accounts to nearly $38 million or Rs 133 crores and has vanished in fraction of a period and only a very small fraction of about $4.4 million was retraced. Also the officials who were dealing with the urea scam clearly stated that it is not the same with the case of urea for it is unlike other payoff scandals like Bofors and the HDW submarine deal, for Karsan had no connection with the supply of area.

CENTRAL BUREAU OF INVESTIGATION
In 2013, the Supreme Court had given a very clear short official note, typically recording a sum owed to the Turkish firm Karsan's executive Tuncay Alankus in an offence of being disobedient to or disrespectful of a court of law and its officers involving Rs133-crore urea scam which rocked the country during the mid- nineties. However with the records collected from the Central Bureau of Investigation and the Enforcement Directorate, a bench headed by Justice Aftab Alam stated that he cannot be proved guilty on the submitted grounds and punished. It was also remembered by the Apex court that in spite of its earlier order made on April 1 2010 where Alankus was proved guilty for contempt of court after National Fertilizers Ltd (NFL) had told the Bench, then headed by Justice Markandey Katju, that despite the court's orders in September and December 2006, Alankus had withdrawn more than $11 million from his account in Pictet & Cie bank in Geneva. Alankus fought for it as the order which was issued by the Apex court on April 1, 2010 was false as he had not withdrawn any money from his bank account for there was indeed no money in it. Shanti Bhushan one of the senior counsel of Alankus on September 13, 2010 submitted records from Pictet and Cie bank which clearly stated that Alankus account was closed on July 25, 2006.

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