05 September 2018

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The Ban Effect Explained Tamil Nadu Gutkha Scam

The Ban Effect Explained Tamil Nadu Gutkha Scam

2013 – Gutkha was banned substance.
The manufacture, storage and sale of the chewable forms of tobacco, including gutkha and pan masala were banned by the Tamil Nadu government in 2013.

Year – 2014 – 16
As per media reports The manufacturer of the MDM brand of gutkha had allegedly paid several crores of rupees as kickbacks to the Tamil Nadu Health Minister, senior IPS officers, and officials of various Central and State government departments  to ensure the manufacture, storage and sale of gutkha, a banned substance in Tamil Nadu

Officials of the Income Tax Department unearthed the scandal while searching the Chennai premises of the manufacturer of MDM in July 2016. They discovered accounts which suggested that ₹39.91 crore was paid over two years to the Health Minister, C. Vijaya Baskar, two former Chennai Police Commissioners, and other officials to facilitate illegal trade in tobacco products.

The IT Department subsequently sent a confidential report to the Tamil Nadu Chief Secretary and the Director General of Police, with information on the beneficiaries, but the government took no action.

The Tamil Nadu government claimed that it had not received any report on the gutkha scam, but subsequently, the IT Department seized a copy of the report from Jayalalithaa’s residence during a search in November 2017.

With the Directorate of Vigilance and Anti-Corruption, a State agency, registering a case against several lower level officials in the scam, political parties and rights activists were up in arms demanding a probe by the CBI since IPS officers (including two of DGP rank), a State Minister and Central Department employees were potentially involved in bribery.

DMK MLA filed a petition in Madras High Court demanding CBI inquiry after that
Madras High Court transferred the case to the CBI for investigation.

One of the accused in the case, a Health Department official, moved the Supreme Court against the order. However, last week, the apex court upheld the Madras High Court order.

CBI has registered an FIR against unidentified officials of Tamil Nadu government, Central excise department and food safety department.
In May last, the CBI’s Anti-Corruption (III) Unit, New Delhi, registered an FIR against unknown officials of the Central Excise Department, the Government of Tamil Nadu, the Food Safety Department, public servants and private persons under sections 120-B (Criminal Conspiracy) of the IPC and also invoked provisions under the Prevention of Corruption Act, 1988.
Special teams, comprising officials of the CBI’s Anti Corruption-III Unit from New Delhi, commenced the searches early morning
The CBI on Wednesday raided 31 locations across Chennai, Mumbai and Bangalore, including the premises of Tamil Nadu Health Minister C Vijaybhaskar, Tamil Nadu DGP TK Rajendran, Tamil Nadu DG (Fire and Rescue) S George, former minister BV Ramana and several officials of the Central excise department, food safety department and health department in connection with the multi-crore Gutkha scam.

The side of effect of ban is always corruption.
The good idea is to tax them more and more and more, ban is not a solution it is an idea to get the bribes.

Ban the product, get the bribes and make law and punishments weak which has banned the product thus company who is making banned products sell the banned product and people who consume them or sell them no one fears.
But the Indian citizens suffer as we lose the tax on that product which can be used for the poor people of India.

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Wednesday,September 5, 2018

Tags – Tamil Nadu Gutkha Scam Facts Explained