IN THE early hours of February 20th 2010 Uday Vir Singh, an Indian forestry officer, bluffed his way past a private militia guarding a dusty port called Belekeri. For months suspicious-looking convoys of trucks had been thundering across India to the port’s quays on the country’s west coast, just south of the Goan beach where the super-spy mayhem which opened “The Bourne Supremacy” was filmed.
Mr Singh is no more a Jason Bourne than the next entomologist—he has a doctorate on metamorphosis in insects—and the infiltration he mounted with a few colleagues led to no gunplay. But it did uncover a massive scam, with hundreds of officials and politicians in the state of Karnataka in the pockets of an illegal mining mafia that, over five years, had made profits of $2 billion or more shipping illegal iron ore to China.
Such scandals have rocked Asia’s third-largest economy in the past decade. A lot of transactions that put public resources into private hands—allocations of radio spectrum, for example, and of credit from state banks—have come under suspicion. Of the ten biggest family firms by sales, seven have faced controversies. The brash new tycoons who came of age during the boom years of 2003-10 are under a cloud, too. Before he became boss of the central bank last year, Raghuram Rajan worried publicly that India could start looking like an oligarchy along the lines seen in Russia: “too many people have got too rich based on their proximity to the government.”
via Fighting corruption in India: A bad boom | The Economist.
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