Fodder Scam In India......

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1. Back ground/ History of Scam

The Fodder Scam [ ] was a corruption scandal that involved the embezzlement of about 940 crore (equivalent to 20 billion or US$ 320 million in 2014) from the government treasury of the eastern Indian state of Bihar. Among those implicated in the theft and arrested were Chief Minister of Bihar, Lalu Prasad Yadav, as well as former Chief Minister, Jagannath Mishra.

There is also allegation on Shivanand Tiwari of receiving 1 crore and 60 lakh Rupees respectively from S.N. Sinha.

Cont...
The corruption scheme involved the fabrication of "vast herds of fictitious livestock" for which fodder, medicines and animal husbandry equipment was supposedly procured. Although the scandal broke in 1996, the theft had been in progress, and increased in size, for over two decades. Besides the magnitude and duration of the theft, the scam was and continues to be covered in Indian media due to the extensive nexus between tenured bureaucrats, elected politicians and businesspeople that it revealed, and as an example of the mafia raj that has penetrated several state-run economic sectors in the country.

As of May 2013, the trial has completed in 44 cases out of a total of 53 cases. More than 500 accused have been convicted and awarded punishments by various courts.

2. Unethical Issues Found

Submitting false expense reports, which includes fodder, medicines and animal husbandry. Officers and Misters were included.

Bribe was taken and given.

3. People involved
Rashtriya Janata Dal chief Lalu Prasad Yadav. Jagannath Mishra. IAS officials the then regional directors of the animal husbandry department K. N. Jha, J. Bhengraj. additional director K M Prasad

4. What actual happened in Scam?...

The scam had its origins in small-scale embezzlement by some government employees submitting false expense reports, which grew in magnitude and drew additional elements, such as politicians and businesses, over time, until a full-fledged mafia had formed. Jagannath Mishra, who served his first stint as the chief minister of Bihar in the mid-1970s, was the earliest chief minister to be accused of knowing involvement in the scam. In February 1985, the then Comptroller and Auditor General of India, T.N. Chaturvedi, took notice of delayed monthly account submissions by the Bihar state treasury and departments and wrote to the then Bihar chief minister, Chandrashekhar Singh, warning him that this could be indicative of temporary embezzlement. This initiated a continuous chain of closer scrutiny and warnings by Principal Accountant Generals (PAGs) and CAGs to the Bihar government across the tenures of multiple chief ministers, but the warnings were ignored in a manner that was suggestive of a pattern by extremely senior political and bureaucratic officials in the Bihar government.

Cont...
In 1992, Bidhu Bhushan Dvivedi, a police inspector with the state's anti-corruption vigilance unit submitted a report outlining the fodder scam and likely involvement at the chief ministerial level to the director general of the same vigilance unit, G. Narayan. In alleged reprisal, Dvivedi was transferred out of the vigilance unit to a different branch of the administration, and then suspended from his position.

He was later to be a witness as corruption cases relating to the scam went to trial, and reinstated by order of the Jharkhand High Court.

5. Time line of the Scam

January 27, 1996: The scam came in to force crores of money from the state government treasury given to non-existent companies for supply of fodder in districts like Chaibasa. March 11, 1996: Patna high court directed CBI to investigate the fodder scam. March 19, 1996: Supreme Court confirmed the Patna high court order, directed a bench to monitor the probe. July 27, 1997: With the CBI tightened its noose around Lalu Prasad, he installed his wife Rabri Devi as chief minister of Bihar. July 30, 1997: Lalu Prasad surrendered before the CBI court.

Time line Cont..

August 19, 1998: Disproportionate assets case registered against Lalu Prasad and his wife Rabri Devi. April 4, 2000: Lalu Prasad charge sheeted and Rabri Devi was made a co-accused in the DA case. April 5, 2000: Lalu Prasad and Rabri Devi surrendered, but Rabri Devi being the chief minister of Bihar got bail. June 9, 2000: Charges were framed against Lalu Prasad in court. October 2001: Supreme Court transferred all the cases to Jharkhand and Lalu Prasad had to surrender in Ranchi.

Time line cont..

December 18, 2006: Lalu Prasad and Rabri Devi were given clean chit in the disproportionate assets case. 2000-2012: As the trial continued in Jharkhand court, several key witnesses and accused passed away. May 17, 2012: The special CBI court framed charges against Lalu Prasad in another fodder scam case, which pertained to fraudulent withdrawal of Rs.3.13 crore from Dumka treasury between December 1995 and January 1996. September 17, 2013: Special court in Ranchi reserved its verdict in the fodder case.

September 30, 2013: Special CBI Judge PK Singh pronounced the judgment in the case No. RC 20 A/96. He convicted all the 45 accused, including Lalu Prasad and Jagannath Mishra, in the scam. They court will pronounce the sentencing on October 3.

6. Current Status of the Scam

Former Bihar chief minister and RJD president Lalu Prasad was finally sentenced for five years with fine of Rs 25 lakh. Another former Bihar chief minister Jagannath Mishra has been sentenced for four years with fine of Rs 2 lakh. Janta Dal MP Jagdish Prasad has been sentenced for four years with fine of Rs 5 lakh. Former MLA, RK Rana, has been slapped with the maximum fine of Rs 30 lakh and imprisonment of five years. Four IAS officers and 25 suppliers who were accused by the CBI in the same case have been awarded imprisonment of four years each. The 65-year-old leader has lost his Lok Sabha seat and stands disqualified as an MP and is also barred from contesting election for six years following the sentencing thanks to a Supreme Court order.

7. What are likely effects on this to the party, as well as to society and to nation?
Party:- Rashtriya Janata Dal

8. What are the recommendations purely on ethical basis?

Effects of Scam
Bribing was done. Encouragement of Corruption within the country. Black money was created through fraud. Indirectly economy of nation got affected.

9. Conclusion.