881 FINANCIAL DIARIES ARE NOT WRITTEN FOR FUN. THEY ARE NOT LOVE DIARIES. THEY SUBMIT ACCOUNTS TO OWNERS OF FUNDS.

Trigger for this particular blog post: A news report titled: "SC rejects probe into alleged Sahara-Birla payoffs to Modi", dated 11th Jan. 2017, of TribuneIndia.com. Click here to go to http://www.tribuneindia.com/news/nation/sc-rejects-probe-into-alleged-sahara-birla-payoffs-to-modi/348980.html. With due and high respect to the wisdom of the Justices of the Supreme Court of India, we can use our freedom of expression to discuss other aspects of the issue, which might not have come to the notice of the Honorable Court. At this point of time, we have to accept the observations of the Venerable Court:

"... No democracy can survive if investigations are readily set in motion against important constitutional functionaries without there being cogent material on record. ..."

"... The process of law can be abused very easily to achieve ulterior goals if such pleas were allowed. The material provided by the petitioner in the form of random papers containing computer and diary entries, excel sheets and emails could not form the basis for registration of an FIR as these were inadmissible evidence in law. ..."

"... Some of the material contained information about payoffs in crores of rupees paid to Modi and a large number of other leaders of various political parties by the two groups, but there was nothing to show that money was actually paid to any one of them. ..."

"...Income Tax Settlement Commission had given its conclusion that the documents seized by the CBI and I-T Department during raids on the Sahara group were not genuine. ..."

"...A combined reading of the SC verdict in the hawala and Bhajan Lal cases and the I-T commission’s findings made it clear that it was not a fit case for directing investigation. ... Going by the material on record and the peculiar facts of the case, We find no case is made to direct investigation against various political functionaries and officers. The applications are found to be meritless and dismissed, ..."

ybrao-a-donkey's personal views, which are not intended to be imposed on others. This is just loud thinking.

Some names which figured in these documents:--

Sarvashri
LK Advani
Sushma Swaraj
Ravi Shankar Prasad
Mulayam Singh Yadav,
Mayawati
Lalu Prasad,
Salman Khurshid
Sheila Dikshit
Farooq Abdullah.

Apart from the PM as the then CM of Gujarat, all the above politicians whose names figured in the documents, too might have breathed a sigh of relief, owing to the Apex Court's unwillingness to order an investigation. So far so good, okay.

POLITICAL DONATIONS

Political parties need funds, for canvassing in Elections. Till some alternative arrangements, such as State Funding of Elections, are made in lieu of collection/extraction/extortion of corporate donations, political parties, whether they like it or not, howsoever clean those parties may be, including the left parties, are bound to take donations from business persons and industrialists. Reason: It is they who have money, enough money to donate, after meeting their needs. It is they who have some work or other with the Government. They have to fund all parties, because future is uncertain, and any party can come into power anywhere in India. Bulk of our voters are poor. They cannot donate. Instead, they want somebody to pay them and buy their votes.

But still, some questions linger around and pester like 'flies'. The foremost question is, assuming though the above funds have not been paid to politicians/parties, HAVE THEY AT ALL BEEN WITHDRAWN FROM THE CORPORATE COFFERS, i.e. THE BANK ACCOUNTS OF THE RESPECTIVE COMPANIES SHOWING 'FOR OPERATIONAL PURPOSES'.

Were some Cash Sales Accumulations / Cash Receipts across counters, diverted for various purposes, without depositing them into the Bank Accounts of the Companies?

Have the funds been used for non-operational purposes?

Have the funds been used
a) partly for genuine business expenses of the Company?
b) partly for personal benefit of persons controlling the Company?
c) partly for personal benefit of Officers of the Company?

There is a possibility that NO FUNDS might have been given to the political persons/parties, though their names have been mentioned in the diaries. This will be awful !!! If political parties/leaders get some funds, at least a part of the funds will trickle down to party grass-root worker level, and the voter level.

Have the withdrawals been scrutinised by Company's INTERNAL AUDITORS? If the internal auditors found any irregularities did they report the matter to the Companies' top Managements?

Have the withdrawals been scrutinised by Company Auditors, who are members of Institute of Chartered Accountants of India? If so what are the observations of the Company's External Auditors? Have they reported the matter to the Companies' Top Managements? Have they made any notes in the Statutory balance sheets of the Companies, prepared as per Companies Act?

Are the top Managements of the Companies aware of the possible embezzlement / misuse / diversion of funds? If so what action they have taken into the embezzlement?

DIFFICULTIES OF OUR COURTS

Shortage of judges
Shortage of Court Halls
Ambiguities in Laws.
Absence of INVESTIGATION APPARATUS (separate Judicial Police) under direct control of Courts.
Absence of ENFORCEMENT APPARATUS (separate Judicial Police) under direct control of courts.
(un)Willingness of some Governments to co-operate with Courts.
Judicial Corruption.

PRIMA FACIE PRELIMINARY INQUIRIES

We may have to make a flexible law, for initiating Preliminary Inquiries. Preliminary Inquiries need not be viewed with suspicion. Preliminary inquiries, can be permitted to be made without FIR. There should be no arrests. There should be no need of obtaining witnesses and statements. They should not be in the form of raids. Above all, they should not TAINT the persons, about whom inquiries are made. They should be conducted in such a way, the persons involved welcome them, and come forward to face them. These type of inquiries will be in alignment with the Judicial Philosophy of "Innocent till convicted", "Innocent person should not suffer" etc. Formal FIR will come into picture, at a far far later stage, when solid indisputable evidence emerges. That will be rare, anyway.

INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

Why can't Institute of Chartered Accountants of India initiate a check, whether their Members who are Auditors for Companies are properly discharging their duties? There is a possibility that Company Auditors who may be ACAs and FCAs, CFOs who may be ACAs, FCAs, may still be negligent owing to work pressure, or can even be complacent / acquiescent / oblivious of the dangers involved. Institute of Chartered Accountants should recall the experience of its Members who were at the receiving end of the Satyam Computers Fraud, and Price WaterHouse Cooper Audit Team.

SEBI

SEBI can also intervene, because, there is a possibility of diversion of funds.

RBI

RBI can intervene for a detailed check into the accounts of the Companies involved, to find out if there is diversion of Bank Loans. Even in case of non-loan Current Accounts of Companies, Banks have a FIDUCIARY responsibility to monitor where the funds withdrawn from the accounts are going. They have a duty to enquire into the nature of withdrawals, names of the payees, before passing cheques for LARGE AMOUNTS for payment.

INDIA'S PRIVATE COMPANIES HANDLE PUBLIC MONEY !!!

Though Indian Public Limited Companies do not mention "Public" in their name plates, are really PUBLIC in two ways. 1. They are owned by Public of India. 2. They handle public money. We should not have a narrow view that Indian Private Sector "Limited" Companies are Private Companies, even if they are closely held, family-held.
India's Private Limited Companies, though may have few share-holders, and are exempt from some Company Law Procedures, they too handle PUBLIC MONEY.

Thus, nothing Corporate, can really be viewed as Private Affairs. Unfortunately, they are viewed as private family affairs. Indian MPs should wake up, and they should discharge their properly, to guard PUBLIC MONIES against embezzlements. At the first instance, they should not become share-holders in the embezzlements. At the second stage, they should not be acquiescent / complacent / oblivious to embezzlement-s which MAY TAKE PLACE in Indian Corporate Bodies.

FINANCIAL DIARIES ARE NOT WRITTEN FOR FUN. THEY ARE NOT LOVE DIARIES.

Though the diaries may not be GENUINE, may not be ACCURATE, they seem to have a specific purpose. That purpose may be to show accounts PRIVATELY to THE OWNERS OF FUNDS, so that the owners can cross check with the RECIPIENTS.

To continue, and edit/delete, if necessary. सशेष. ఇంకా ఉంది.