Chapter 28: Muster roll fraud

‘The first mega scam of Tamil Nadu began in the year 1969, four years after I  joined the police service as a sub-Inspector,’ former additional superintendent of police H.K.Doss TPS  began his address to the select gathering at the Brains Club.

The Club invited guest speakers, irrespective of their status, if they had a verifiable first-hand inside information to share on any interesting subject. The Club was the creation of Soma Sundaram - a cop turned multi billionaire businessman.

Menon learnt from Anand that Doss would speak about the `muster roll scam' in the Madras Corporation at the club in the coming week end. He had read of the muster roll scam but could not meet any officer who was closely associated with it. He knew Doss by his reputation, but never had the opportunity for interaction at a personal level. ‘It was my failure as a journalist,’ he had confessed to Anand.

Herbert Karuna Doss, a bright student and centre forward of the state junior football team for three years, was a direct recruit to the 1964 sub-Inspector batch. After 30 years of distinguished service, he took voluntary retirement while serving as additional superintendent of police (Vigilance & Anti-Corruption).

Brains Club president Soma Sundaram was a station writer, while Doss was the Inspector in charge of the St. Thomas Mount Police Station in the late 1970s.

During the police union formation days, Doss was leading a team assigned to keep a tab on the blacklisted union activists.

Learning that an order was on the way to detain them, Doss called Somu to his room and told bluntly: ‘Look here Somu. I do sympathise with your cause. But as a uniformed officer, I’m duty bound to obey orders.

You will be in serious trouble if I spotted you again after 30 minutes from now. Scram!’

Worldly wise Somu got the message, and vanished after a smart salute. He was anticipating trouble after an incident earlier in the day at the office of the Police Commissioner.

Somu had led a three member delegation to meet the Commissioner with a garland to seek support for the proposed Police Union. After making them wait half a day, the Commissioner sent his camp clerk with a stern order to chase them away.

The unionists left after warning the civilian camp clerk to be careful while dealing with the police union leaders. The angry young Somu wanted to vent his fury. As they were moving towards the police canteen, he spotted the garbage bin, and threw the garland into it saying it was the right place for it.

Unfortunately, it landed on a stray dog scrounging food in the bin. The frightened dog ran amok in the campus, trying to dislodge the garland that got stuck on its collar.

Several amused cops in uniform and mufti hanging around the canteen watched it.

The news went viral. Some said the Union leaders had deliberately garlanded the dog to insult the Commissioner.

When the embellished news version reached the Commissioner through his camp clerk, he grabbed the intercom, called the intelligence section chief and roared: ‘Catch them all, and shoot if required.’

The assistant commissioner (IS) was already aware of the incident, but had ignored it. He checked with the camp clerk once again to confirm the background and passed on the message to the newly formed Anti-union squad.

Later during a departmental inquiry after change of the state government, the commissioner said his directive was to remove the large number of stray dogs roaming the office campus.

Somu too had learnt about the order through insider union sympathisers and was about to abscond, when Doss summoned him.

Next day evening, Somu and other union leaders surrendered before Doss, in the presence of a left wing advocate. Somu has requested that they may be remanded to jail. After recording their detention under preventive custody, Doss arranged to produce them in the night, before a judicial magistrate at his residence. The magistrate remanded the activists to jail.

Next day, Doss got a displeasure note from the Commissioner for indiscretion while dealing with police union leaders.

Somu and friends never applied for bail. They remained in the safety of jail, till a new government was formed in the state, supported by the police union activists, their friends and families during the Assembly election.

While in jail the unionists pledged life-long loyalty to Doss for his timely help during a very tricky and dangerous situation.

Tapping the mike, Doss turned to the audience and continued: ‘Thank you the club president for providing me this platform, and guests who spared their valuable time to come and listen to an old scam story.

The infamous muster roll scandal that shook the Madras Corporation in the 1970s.

I chose to speak on this scandal, because I had a ring side view of the entire case from beginning till end. It had all the ingredients that went into the making of a mega scam. More importantly, it highlighted the legal gaps through which the perpetrators and beneficiaries of a scam could delay action, and escape.

The amount involved in the scam was Rs.1.26 crore; perhaps peanuts in the background of super mega scams in the later years. But please bear in mind that the theft of this Rs.1.26 crore of public money had taken place at a time, when gold was sold at Rs.125 a sovereign, almost equivalent to the monthly salary of a fresh constable recruit.  

If you work it out taking the price of gold as a benchmark, I am sure it would be a respectable scam, even if projected against the modern scams!’

The remark drew laughter and approving nods.

‘Back to my sub Inspector days,’ Doss recalled:  When I was in the Police Training College, our law instructor once  remarked that no corruption case with the involvement of  Politicians or big money would ever get disposed of  during the service period of  the first investigating  officer. It will be followed up by less informed investigators and prosecutors over a long period of time, to the advantage of accused persons. Truer words were never said.

I had keenly watched the sordid saga of this case with strong political undercurrents, moving up and down, for 25 years depending on the political party in power.

I mentally saluted that Law Instructor every time a new investigator and government pleader took over the case.

This pattern of anti-corruption investigation had emboldened several marginally corrupt government employees to plunge headlong into mega deals, in the subsequent years, without any fear of law.

According to records, the government had wasted another Rs.45 lakh of the tax payer’s money to pursue the muster roll case, conducting the trial in the special court for 20 months, contesting the appeal in the high court and going on appeal to the Supreme Court – all in vain.

This, mind you, despite after the highest court in this country upheld the original verdict of guilt and conviction.

As an afterthought, Doss added:  I am certain that this ‘conviction’ in the trial court, ‘acquittal’ in the high court, and ‘upholding the lower court’ verdict in the Supreme Court pattern would be repeated in all political scandals in the country.

The audience squirmed, while Doss continued: ‘After the training, my first posting was to the Madras Flower Bazaar police station.

As a crime officer, I used to patrol the area and visit in mufti some of the seedy, and the best eating places and lodges in the area, to keep a watch over the visitors.

I was surprised to find that some of the clerical staff of the Madras Corporation had been regularly visiting the expensive hotels and ordering costly food. They carried home heavy food parcels too. A couple of these men were also seen in nearby lodges in the company of female artistes from the movie land. As moral policing was not our priority area, I just ignored these aberrations by otherwise law-abiding servants of the government.

Later some of the arrested among them confessed that they chose the Flower Bazaar area because of the large convergence of floating population and the anonymity it afforded them.’

‘Was it not the time, when the Congress rule ended and the DMK came to power?’ Anand deliberately asked a lead question.

Doss smiled enigmatically and said: ‘Not exactly if you are referring to the scam. The DMK came to power in 1967 with the veteran leader C.N.Annadurai as chief minister. He died of cancer on February 3, 1969, and the mantle fell on Kalainger M.Karunanidhi. Unfortunately for Kalainger, the mega scam began two months later and went on for four and a half years, undetected, bringing a bad name to the ruling party and its leader.

It left the Madras Corporation poorer by 1.26 crore, that was allotted to carrying out useful civil works for the people.

I am specifically naming the political parties, because you will find that in the years to follow, the case would progress and stall depending on the party in power.

And this pattern continued for over 25 years, until all the accused persons escaped the long, but slippery in this case, arms of law. And the culprits kept their booty as well!

Please remember this was in spite of their conviction in the Trial Court being upheld by the Supreme Court of India.’

There was a stunned silence, while Doss consulted his notes and said: ‘When the first reports of the scam hit the media, many could not understand how lakhs of rupees could be swindled from a civic body in Madras - the capital city of Tamil Nadu, administered by the government and closely monitored by the elected members of the public. It was something unheard of in the annals of Tamil Nadu. Even changing the name of Madras into Chennai has not changed the steady march of corruption’, he remarked with a sarcastic grin.

There was a mild stirring among the audience, and Menon fidgeted in his chair.

Doss groped his pockets for some papers while talking to the audience: ‘I would prefer to call this a socialistic pattern of scam. There was no class discrimination.

The dramatis personae of this corruption epic included three worshipful mayors, 31 honourable councillors, four gazetted engineers, several assistant engineers, supervisors, lighting engineers, clerks, time keepers, tax collectors, accountants, internal auditors, and watchmen among the 107 accused persons.’

‘Interesting,’ former Chairman of the Union Public Service Commission Dr.Sundarvel commented.’Rs.125 lakh booty for 107 persons! Each one made an average of Rs.1, 17,000 bribe. Can you please tell me what the scam itself was?  I was serving at Delhi most part of my career.’

‘Yes sir. The scam was simplicity itself,’ Doss explained. ‘Work estimates are prepared by electrical supervisors and charge engineers. Work is carried out by groups of permanent and temporary labourers. If the work is urgent, the supervisors are allowed to engage temporary workers.

The usual practice over the years  was to include only a limited number of fake names in the muster roll, draw their wages, and share it among lower level staff.’

Discovering the risk-free money potential involved, the scheme was expanded to benefit many more, from Mayors downwards.

The names of hundreds of non-existent workers had been included daily, and money drawn. When large number of fake names had been included, the tainted funds swelled.

The pangs of greed began to gnaw several intermediary officers who processed, approved and disbursed the money.

They too joined the group.

When the other department officials saw the electrical

department staff rolled in muster roll money, they reported it to the vigilance and anti-corruption department. This led to the investigation, arrests and the prosecution.’

After a brief pause, Doss said: ‘Now friends, let me tell you about my career graph, and the progress of the scam.

I was posted in 1973 to head one of the several probe teams, reporting to the lead investigator Inspector Gajendran. In the course of investigation, we had interrogated and arrested 107 accused persons, took statements of hundreds of witnesses, gathered tons of material evidence including Rs. Four lakh cash, three kilograms of gold jewellery, documents of movable and immovable assets worth several lakhs, investment receipts and motor vehicles brought with the tainted money.

We collected voluminous material evidence, and filed 20,780 exhibits in the court to support our case against the corrupt officials.

After protracted trial, the third Additional Special Judge, Madras, on November 30, 1978, convicted 75 out of 107 accused persons to one to four years rigorous imprisonment. He ordered the attachment of cash, gold jewellery, investments, landed properties and motor vehicles seized from the culprits.

The judge in his 2,400 page judgement observed:

‘I cannot but express my surprise and disgust at the way the chosen representatives of the people had come to the institutions to swallow its resources.’

All the delaying tactics, now resorted to by the corruption case accused persons, had been used even at that time to delay and stall the proceedings in the court.

The state Directorate of vigilance and anti-Corruption had registered the case against 107 persons on November 15, 1973 and the charge sheet was filed on November 6, 1974. The trial began on May 14,1975, but was held up till March 20,1976, as some of the accused persons had challenged the

trial - first in the high court, and then in the Supreme Court.

The prosecution case was that the Madras Corporation officials were taking  bribes  of Rs.500 to Rs.5000 a month depending on their status, by fabricating fake muster rolls.

Mind you, this was three to ten times their monthly salary.

During the trial, it examined 360 witnesses in this case, including seven approvers and 20,780 documents filed. Of the accused persons, one councillor died before the charges were framed.  Another corporation official and two non-officials died during the 20 month long trial that began on March 20, 1976.

I was promoted as Inspector that year, and transferred to St. Thomas Mount Police Station.

Immediately after conviction by the lower court, the accused went on appeal. The mayors belonged to the ruling party, and most of the accused persons had become party supporters. There were allegations that the government did not properly conduct the case in the High Court, when the appeal was heard.

The High Court on April 9, 1990 acquitted all the accused.

‘On what ground sir’, Dr.Sundarvel could not hold his anger.

‘Several grounds sir’, Doss took a deep breath.  ‘Some of them that I remember are:

(a) fingerprints of the accused were not taken by authorised persons

(b) the permission to prosecute the employees should have been accorded by the Corporation, not the state government

(c) there is no direct evidence for any conspiracy, and

(d) Corporation Councillors are not government employees.

The State government decided not to go on appeal against the judgement despite expert legal opinion from senior advocates that it was a flawed judgement.

Unfortunately for the accused persons, the AIADMK led opposition party came to power next year. It promptly went on appeal to the Supreme Court against the Madras High Court verdict.

The Supreme Court on May 13, 1994 upheld the convictions, and set aside the acquittal ordered by the high court four years ago.’

There was a collective sigh among the audience.

Truth triumphed at last!

Sensing the mood, Doss continued with a sorrowful expression: ‘Let me assure you gentlemen.

Again the tax-paying public was the loser. They lost Rs.126 lakhs to corrupt officials.

Another Rs.45 lakh  for conducting the trial in the special court for 20 months, contesting the appeal in the high court, and going on appeal to the Supreme Court.

The time and efforts of hundreds of policemen, court officials and government lawyers had been wasted on chasing an elusive political scam.  The time, money, and efforts that could have been productively used for the public good.’ Doss paused briefly to sip water and said: ‘Now gentlemen, the hilarious climax.

The government got nothing after conducting and winning the case in the Supreme Court. By the time the final judgement came, 22 of the accused persons had died. A few others joined political parties and became leaders. And there was no property available for attachment.

Immediately after the acquittal in the High Court earlier, all the accused persons had been advised by their lawyers to dispose of the ill-gotten properties.

The prosecution was forced to return the attached properties and other valuable items to the accused persons, because the then ruling party declined to go on Appeal.

There was a palpable wave of revulsion and distress among the audience after listening to the way the scam ended, leaving the State poorer by several lakhs of rupees.

In an apparent effort to cheer up the guests, Somu signalled Anpu to distribute hot tea and snacks.

‘I hope at least the scoundrels had been jailed?’ the former UPSC Chairman queried indignantly, after the tea break.

‘I’m sorry to disappoint you, sir’, Doss gazed at him. ‘That part is more hilarious than the climax. It is also a telling commentary on the system.’

The Supreme Court judgement came in the year 1994, a year before I chose to opt for a voluntary retirement from service, disgusted by the way the system worked.

I was on deputation to the vigilance and anti-corruption department at that time.

Only very few people knew the hilarious end story.

The ruling AIADMK did not want much publicity to it,

because it unwittingly, helped the accused to reduce their imprisonment by two years due to politically motivated compassion in the form of remissions.

While the surviving muster roll scam accused had been staring at various terms of imprisonment, a smart lawyer came up with a very innovative argument.

After the first conviction of the accused in 1978, the Tamil Nadu government had granted seven remissions of six months each to all prisoners in the State.

In the garb of honouring great leaders, the government declared six months jail term remissions each for C.Rajagopalachari centenary celebrations, Periyar centenary celebrations, DMK government coming to power in 1989, Bharathidasar centenary, and Chief Minister Jayalalitha’s birth day celebrations in 1992, 1993 and 1994.

The muster roll criminals claimed that they were entitled to the total remission of 42 months, since they stood convicted during the period, and deemed to be prisoners, though not actually sitting in the jail. They argued that they had continuously attended the court for 600 working days, which also should be considered as ‘judicial custody’.

The Madras High Court upheld this argument and ruled that

the accused persons were deemed to have suffered the

imprisonment.

In the end, the white collar criminals did not suffer any imprisonment as convicted prisoners, pay any fine or forfeit even a single rupee of the ill-gotten wealth, which was ordered to be attached by the apex court of this country.

After a brief pause, Doss clarified: ‘In other words, the government lost over Rs. Two crores as the money swindled, expenses for conducting the case and unspecified sum towards wastage of police and judicial man hours chasing this elusive corruption case.’

‘Terrible. How many people in this country are aware of this and similar mega loots all over the country,’ commented R.K.Mathur, Chairman of the University Grant Commission. ‘Such cases must be part of the study curriculum.’

‘Take it easy Sir’, Anand consoled him. ‘Ignorance is bliss.’

‘Dinner is ready,’ Soma Sundaram announced. ‘I request all our esteemed guests to move on to the terrace and join us. Thank you.’

‘Hope the bar is open,’ Menon inquired in a strangled low voice.  ‘Let us quaff some good scotch. Don’t say no. I need it.’

‘Why?’ Anand was curious.

`Because Alcohol cements friendships'’ Menon said with a cynical smirk.

‘But…rots your liver as well,’ Anand warned.

Both grinned mirthless while Anand raised his hand and signalled Anpu, manning the Bar, with a `V’ sign. Anpu flashed a welcome smile, while grabbing a fancy bottle by the neck.

‘I want to get drunk’, Menon repeated in a conspiratorial tone… `reason you will know soon.’

‘Skip the suspense; say something pleasant,’ Anand grunted.

‘Okay.Cheeeeeers’, Menon said raising his glass, with a smirk of assumed cheerfulness.

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