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New Trend in Indian Corruption – PSU Bosses prefer Gold Bricks as Bribes

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Corruption in India has taken massive proportions with a new scam being unearthed almost every day .However this has not metered the architects of corruption in India from continuing their looting spree.While the 2G Telecom Scam throws up new looting revelations,newer corruption scams are also competing for newspaper inches.Investing in the Indian stock markets is at best a hazardous activity with most of the promoters trying to fleece shareholders.Mid cap and small cap scams have already resulted in massive losses.Now investing in India’s largest companies belonging to the main Nifty Index has also become dangerous.While the scam related to the ADAG Group has already resulted in 80-90% fall from the peaks of the companies of this group,others are joining in.Nalco which is a government owned integrated aluminium producer was thought to be one of the safest companies to invest in.However even this company has fallen.The CEO of the company was found taking bribes in the form of gold bricks in return for favors.

The wife of the CEO was  found to be in the possession of almost half a million dollars in gold bricks and lots of cash.Note Indian PSU CEOs are not highly compensated.The bribe giving company belonged to the Indore based Bhatia Group which imports coal and wanted a favorable contract.Note this is quite acceptable and a number of top honchos of public owned companies indulge in shenanigans like this.Note the CEO Srivastav held top positions in other PSU Companies before this which would imply that the rot extends wide and deep.It seems that these culprits prefer gold instead of cash which seems logical with constantly rising prices,easier to handle etc.

NALCO CMD arrested for taking bribe; stk slips 6.8%

National Aluminium Company (NALCO) touched an intraday high of Rs 430 and an intraday low of Rs 401.05. At 09:21 hrs the share was quoting at Rs 410.10, down Rs 30.05, or 6.83% on the NSE.

The company’s CMD and his wife arrested for taking bribe. Rs 30 Lakh and 10 kg gold recovered from company’s CMD house. The company’s chief Srivastava has suspended, B. L Bagra is the new CMD, reports CNBC-TV18.


Abhishek Shah

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