Opinion 2008081952830301

Published on May 8th, 2014 | by admin


Crony Capitalism, Corporatization Of Politics and Broken System: The Case Of Andhra Pradesh – Gutta Rohith

Disclaimer: The views expressed in “Regular Columns” section are completely of the writer’s. The articles or writers do no’t represent NRI Samay

The emerging trend in the Indian political sphere is the entry of more and more of corporate personals into politics and political parties. This can be seen as a continuation to the presence of feudal elements in political spectrum. Just as feudal economic and social systems mature to become capitalist systems the entry of Corporates can be seen as replacement of earlier feudal elements. The entities/persons who has benefited from the capitalist economic system through crony-capitalism and exploitation in many invisible forms are showing so much interest in “Serving” people these days through the medium of politics and parliament. These people were once upon a time limited to lobby on behalf of their economic interests. This lobbying itself had done a great deal of damage. For example many capitalists including “highly respected” Ratan Tata was found in a compromised conversation in the Neera Radia tapes issue. We can emergence of many liberal groups such as “Indian Liberals” which are meant for lobbying in-fact pressurize government to pursue neo-liberal policies and reforms with much more speed and dedication. These liberal groups which believe in Trickle Down and Trickle down Plus theories believes in creation of wealth rather than creation of an equitable society. They believe that once wealth was created the wealth can be used for welfare measures and that wealth will trickle down. So for time being the other sections should bear the pain. (In-fact this is what IMF advocates when it conditions Governments to initiate reforms) If we examine this from the perspective of Human Rights (which these liberals advocate ferociously) it is completely against the philosophy of Rights itself. What is the concept of Capitalism? It is creation of wealth for few with the sweat and hard work of many. Only these liberals should say which aspect of Human Rights advocates the concept of “Happiness for few with sorrows of many”.

Now coming back to the role of corporates in the discourse of political spectrum. Right from the beginning Tata’s &Birla’s supported (economically) many activities during Independence struggle. So after attaining Independence Nehru had to listen to them and had to follow a mixed economy which is mainly about everything being “Big” be it industries, be it dams. This was completely against the Gandhian philosophy of economy i.e. Economy of Permanence. Economists like J.C.Kumarappa had proposed alternate model of economic construction but eventually it was rejected. From that time itself the role of these Corporates started working efficiently.

Coming to the present day role of Corporates Let we take a small example viz the pricing of K.G basin gas issue. Initially Reliance agreed to supply the gas at $2.34/unit of gas for a period of 17 years. Later it was increased to $4.2 and now it was increased to $8.4 with effective from this financial year. In fact in a report submitted to Directorate of Hydro Carbons Reliance had mentioned that cost of extraction/unit of gas was less than a dollar. Because of the code of conduct of elections the implementation was stayed by Election Commission. There is so much criticism against the pricing policy. Many professionals form both bureaucratic and technical circles are pointing out flaws in the process of decision making. But still government decided to go with the hike. CAG had pointed out irregularities in extraction of gas. The gas extraction from basin was not as per the agreement. But still there is no action against the giant corporation. The revised price will benefit the corporation around 1 Lakh Crores. The implications are not limited to economic spectrum. The effect can be seen on political spectrum also. The then minister of Petroleum Mr. Jaipal Reddy who didn’t listen to Reliance and never entertained its officials was shifted to ministry of Science and Technology and Veerappa Moily was the new minister of Petroleum who took care that this entire episode worked out in a smooth manner.

Another example is the issue of clearance to GM field trails. The issue is with Ministry of Environment. Jayanthi Natarajan and her predecessor were strong on not allowing open field trails of GM crops. But both were removed from the ministry. Jai Ram Ramesh was shifted to Rural Development portfolio and Jayanthi Natarajan was made to leave the ministry and dedicate for party work. The ministry of Environment was handed over to Veerappa Moily who was the minister of Petroleum portfolio. Nowhere same person is handling both opposite portfolios i.e. Petroleum and Environment and now this ministry was ready to give permission for open field trails (the case is in Supreme Court and judgment is expected in a day or two). The domain of GM technology is expected to be shifted to Ministry of Science & Technology if BRAI bill is passed as it is.

Above two examples clearly demonstrates how the lobbying of corporates is altering the policies, decisions &even political systems which are expected to be most democratic. These so called liberal even demand to look politics as business to curb corruption, But they will never agree that this so called corruption is stemming from the present form of economic system i.e. capitalist economic system. These so called liberals want politics to be made an occupation which will earn them Rs.5 Lakhs/Month. But these people act blind as if they are unaware that on average a member of parliament earns around Rs. 25 Lakhs/Annum and India is next only to Kenya in paying heavily to “Elected Public Servants”. They also want to inculcate Management principles and theory and corporate style of functioning in politics. In fact they might have forgotten that this entire discourse called “Management” never existed and it was just lifted from Public Administration.

With these types of dangerous ideas and manifestos slowly these corporates are entering politics. Already many parties are filled with these people. Naveen Jindal (Congress), Bijayanth Panda (BJD), Gurudas Kamat (Congress), Kavuri Sambasiva Rao (Congress), Galla Jayadev (TDP), Ayodhya Ramireddy (YSRCP) etc. has already entered into political spectrum. The parties/alliances be it UPA, be it NDA which are very much interested in pushing the agenda of neo-liberal groups are whole heartedly welcoming this new phenomena. Already we are witnessing elections where the average asset value of party candidates is in crores. We cannot expect people like Puchalapalli Sundayya, Jaya Prakash Narayan (don’t mistake him as Loksatta JP).in today’s politics. It doesn’t mean that politics should also be left to market. This free market syndrome is slowly entering into politics. We are almost fighting a lost battle against corporatization of agriculture where we are rapidly losing our food sovereignty. The Parliamentary Democracy which is being masked as Direct Democracy is being slowly mortgaged to these corporates. “India Mortgaged” the statement by Comrade Tarimela Nagireddy holds true today. Everyone is talking about Economic slavery but now this phenomenon i.e. political slavery has to be understood. The irony is that no political party is talking about any of these issues. No one is opening their mouth about this issue. Even party like AAP which raised hopes by inducting people like Yogendra Yadav, Prasant Bhushan, Medha Patkar, S.P.Udayakumaran, Soni Suri, and Binayak Sen is no less in this issue. People like Meera Sanyal (Ex CEO of RBS), Balakrishnan (Ex CFO Infosys), Gopinath (Air Deccan) were inducted and were even allotted seats. The induction of people of this kind made highly respected people to talk and act in favor of neo-liberal policies. Only M-L parties are talking against these “Real” issues.

Now let us look into the case of Andhra Pradesh. Andhra Pradesh which occupies (d) a predominant position in various aspects such as social reforms, revolutionary uprisings, Agriculture, Industrial development now occupies prime position in various domains such as Crony-Capitalism, Corruption and Individualization of various systems. This entire process cannot be seen only from the economic perspective but has to be seen from the social perspective and the damage it had caused to the social systems.

This all started with the change of government in 2004. Before this we have to talk a bit about the political scenario in Andhra Pradesh. Since independence Andhra Pradesh was very loyal to congress each and every time. During 1978 elections when congress performed very badly all over India, it won 41/42 parliament seats in Andhra Pradesh. The two communities that were backbone of congress were Reddy (Shudra upper caste and constitutes 3% of total population) and Brahmins (6-7%) and Mala sub caste of Dalits. With emergence of Telugu Desam Party congress lost its hold on Andhra Pradesh. The supreme of TDP N.T.Rama Rao who was very famous for his mythological roles in movies changed the entire discourse of politics in Andhra Pradesh. With the advent of TDP another Shudra upper caste community “Kamma” from which he hails from started capturing economic and political powers. His rule was bit welfare centric and he laid major stress on empowerment of women and backward classes. Because of this the so called backward classes are able to be a part of economic powers and are slowly consolidating their strength in political spectrum. After his rule his son-in-law Nara Chandrababu Naidu became the chief minister of Andhra Pradesh. With Nara Chandrababu Naidu becoming chief minister the pace of Capitalistic growth grew by no bounds. The neo-feudal classes emerged as the capitalist classes. He was termed as CEO of Andhra Pradesh and darling of corporates. He was the first person below the level of Prime Minister who was invited for World Economic Forum conference. He initiated the process of following the diktats of IMF &World Bank. He started the process of chanting efficiency and privatization mantra. His rule can be termed as golden period for capitalism in Andhra Pradesh. He used to consider state as an entity, himself as a CEO, citizens as consumers and beneficiaries, government employees as some corporate workforce and social systems and management systems. Andhra Pradesh predominantly being an agrarian state was not able to accept this path. The other factors such as regional aspirations i.e. Telangana movement, Naxalite movement, very strong left movements always acted as deterrent to this path. The initial building and molding was not carried out and it eventually resulted in loss of power. This also marked the end of economic and political monopoly of Kamma community.

In 2004 with Y.S.Rajasekhar Reddy becoming chief minister, all this discourse took a new path. He was from a hardcore feudal background and his rule resembled the rule of village landlords. The capitalist path laid by his predecessor was continued but some flavor of feudalist rule was mixed with that. As mentioned, shudra upper caste Reddy community which was away from economic power started capturing both economic and political powers. With TDP coming into picture majority of Kamma community went with it, but still considerable portion of that community stayed with congress in 1983. Y.S.R used to discourage them & encourage others such as Kapu community where Reddy’s are not so strong against Kamma’s. This resulted in consolidation of Kamma community against Y.S.R

Corruption was a common phenomenon in any system, be it socialist system, be it capitalist system, and be it communitarian system. But during his tenure this entire phenomenon of corruption took a new form. “Quid-Pro-Quo”. Andhra Pradesh was the state which demonstrated this to the whole country. The best point with this is it is not that easy for common people to understand this mode of corruption. This was what that had happened during his rule. His son Y.S.Jagan established dozens of suitcase companies and money flowed like flood from people who had benefitted from his father’s decisions. The other aspect is privatization and corporatization of basic amenities &services. In 2004 congress party headed by Y.S.Rajasekhar Reddy came to power. With the promise of welfare state he initiated various schemes such as

  1. Jalayagnam- Initiated to provide irrigation for un-irrigated fields.

2004 (promise) – 26 projects will be constructed to irrigate 50 lakh acres with a budget of

40,000 crores.

2009 (promise) – 86 projects will be constructed to irrigate 1.38 crore acres with a budget of 1.5 lakh crores.

Till now almost 80,000 crores was spent on this scheme. The total land acquired for construction of these big dams was around 7 lakh acres and irrigation facility was not provided even to the extent of land acquired.

In this jalayagnam almost all the projects were handed over to private firms which had benefitted hugely from this. This is the main reason for huge spending in this election.

2. Aarogyasri- Initiated to provide best medical facilities for poor in corporate hospitals.

If the amount spent for paying corporate hospitals was used for strengthening government medical systems Andhra Pradesh would have been a best example for state managed public health systems.

3. Free power to farmers for 9 hours/day

Let us look into all these in a bit detail.

Jalayagnam was started to irrigate the un-irrigated fields by construction of big dams for both irrigation and electricity generation purposes. The major companies that secured contracts were

1) Progressive Constructions (Former Union Minister of Textiles-Kavuri Sambasiva Rao, at present in BJP)

2) Transstroy India (Former Congress M.P-Rayapati Samabasiva Rao, at present in TDP)

3) Rithwik Constructions (T.D.P M.P-C.M.Ramesh Naidu)

4) Madhucon Constructions (T.D.P M.P-Nama Nageswara Rao)

5) Ramky Infrastructure (Ayodhya Ramireddy, YSRCP)

6) Lanco Constuctions (Former Congress M.P-Lagadapati Rajagopal)

7) Sushee Hitech (Former Minister of Irrigation-Komatireddy Venkat Reddy)

8) Gayatri Constructions (Congress M.P-Tikkavarapu Subbirami Reddy)

9) SEW Infrastructure

The above are few construction companies owned by people who are into politics and political parties. This jalayagnam became an epitome of high level corruption in both economic and political sense. The concept of mobilization advances was initiated where money will be paid before the start of the project. These projects were in-turn sub-contracted to many others. In almost all the projects the tenders were quoted above the base price but still those contracts were awarded. The outcomes of all these are

  1. Many of the above mentioned people are in election fray and are ready to spend hundreds of crores in these elections.
  2. Even a middle level contractor is ready to spend 50 crores in elections.
  3. Too much of money mobility in these elections

Now let us look into the issue of free power. In the name of free power thermal power plants were set up irrationally and land was acquired in the name of SEZ‟s forcefully from the farmers. Almost all the thermal plants are from private sector owned by few individuals. Power purchase agreements were made with those companies. Land was allotted in the name of thermal power plants but actually the land was used for Real Estate purpose by those companies. To benefit those private players power was purchased at high price even at Rs.6/unit. They were given all the resources and were even allowed to sell entire power generated to whomever they want. Let us look into an example.

Kineta Power Private Limited (Vallabhaneni Balasouri, YSRCP) was allotted 840 acres of land in Nellore District for construction of Thermal Power Plant. They were given land at a rate of Rs. 80,000/acre but APPIC has to spend around Rs.1, 90,000/acre to acquire that land and all the lands acquired were assigned lands. This resulted in loss of Rs. 12.10 crores. Even after this that firm didn’t use the land for construction of plant. They tried to sell the land to Jindal and Jindal had acquired this plant for around 10,000 crores. But according to the rules the plant can be transferred only after it was constructed. Bypassing this rule the board of APIIC agreed and recommended government to allow for acquisition by Jindal and now the decision is pending with the government.

This shows how all those schemes were turned to fit the needs of their people. This also shows how the corporates that had benefitted through crony-capitalism are again entering politics through one or the other to keep their interests alive.

Another major issue was about Special Economic Zones. After the 2005 SEZ act around 110 SEZ‟s were approved in Andhra Pradesh (the highest in India) out of which 99 were approved during the regime of YSR. Out of these only 32 are functional. Now let us look into few examples.

1) Around 15,000 acres were acquired for Matrix company owned by Nimmagadda Prasad for VANPIC (Vadarevu-Nizampatnam Port and Industrial Corridor). Nothing had happened here and those lands were used for taking loans from banks.

2) Around 10,000 acres were allotted for Lepakshi Knowledge Hub in Ananthapuram district and the same is the case. Now the SEZ was de notified.

Now let us look into another aspect i.e. allocation of Natural Resources.

1) Iron ore mines in Obulapuram (Ananthapuram District) were allotted to Gali brothers of Bellary bypassing many rules of allocation. I.A.S officers such as Srilakshmi, B.P.Acharya associated with this are now under CBI custody. Around 700 hectares were allotted to them for Captive mining. But instead of using those mines for their proposed Brahmani Industries they sold those in the International market and this proposed industry never took off. These Gali brothers are backbone of BJP in Karnataka and YSRCP in Andhra Pradesh.

2) Bauxite mines in Scheduled area of Vishakapatnam and East Godavari districts were allotted to Anrak (Binami Company of Penna Prathap Reddy) &Jindal. Allotting mines in agency areas to private players is prohibited. So APMDC was used for this purpose. Around 550 MT in
10,000 acres was allotted to both Anrak &Jindal companies. The mines were allotted for life time without any time limit. Naveen Jindal is now congress M.P from Kurukshetra.

The entire process has corrupted all the major system in Andhra Pradesh such as

1) Bureaucratic System

2) Political System

3) Business System

The list of bureaucrats who were accused in the charge sheets filed by C.B.I against Y.S.Jagan (C.B.I has already filed 10 charge sheets against him and two other are in process. E.D. has filed one charge sheet and has confiscated 1100 crores worth assets and he has already spent 16 months in jail) are

  1. Y.Srilakshmi- Accused number 5 in Lepakshi Knowledge Hub case, Accused in OMC case was in jail for quite some time and right now she was suspended from her duties.
  2. B.P.Acharya- Accused in 6 cases viz Hetero Pharmaceuticals, Arabindo Pharmaceuticals, Trident Life Sciences, Lepkashi Knowledge Hub, Indu Techzone, Emmaar estates cases and was in jail for 10 months.
  3. Manmohan Singh- Accuse number 7 in VANPIC case.
  4. M.Samuel- Accuse number 8 in VANPIC case, number 10 in Lepakshi Knowledge Hub case and number 4 in India Cements case.
  5. B.Shyambabu- Accuse number 8 in Lepakshi Knowledge Hub case.
  6. D.Muralidhar Reddy- Accused number 12 in Lepakshi Knowledge Hub case.
  7. Adithyanadh Das- Accused number 5 in India cements case.
  8. Ratna Prabha- Accused number 7 in Lepakshi Knowledge Hub case.
  9. K.V.Brahmananda Reddy- Accused number 6 in VANPIC case.
  10. Krupanandam- Accused number 7 in Raghuram cements case and accused in OMC case.
  11. Venkatrami Reddy- Accused number 5 in RAMKY-APIIC case.
  12. K.V.Rao- Accused number 12 in EMMAAR estates case.
  13. L.V.Subhramanyam- Accused number 11 in EMMAAR estates case.
  14. V.D.Rajagopal- Ex-Director of Mines, Accused in OMC Case, Dalmia Cements case and Raghuram cements case.
  15. Sankara Narayana- Assistant Director of Mines, Kadapa
  16. Y.V.L.Prasad- APIIC Zonal Manager
  17. V.M.Prabhu Shettar- Regional Controller, Indian Bureau of Mines, Bengaluru.
  18. D.Pardhasaradhi Rao- Ex-Chief Engineer &Project Manager, APIIC.

Nowhere in history of corruption in this country 20 high level bureaucrats and officers are accused and were filed case just because of one individual. The entire bureaucratic system was broken up. I.A.S officers became “Ayya Yes” (Yes Boss) officers. The entire system was ram shackled and people who are considered as „their‟ people were promoted to higher posts and to „important‟ posts by-passing all the rules(Example-Christopher, Secretary, Department of Higher Education) and officers who were considered as deterrent to their activities were transferred to „not so important‟ posts (Example-Punam Malakondayya). The situations were such that when these bureaucrats used to tremble if they get call from Y.S.R. They were forced to go beyond their duties to benefit „his‟ people.

Coming to the point of political system. The people in power who are expected to be accountable to public were made to be accountable for Raja and Yuvaraja i.e. Y.S.R & Y.S.Jagan. To give an example, handful of politicians who were in power during his tenure was accused in various scam cases by C.B.I.

  1. Sabita Indra Reddy (Ex-Minister of Mines, Minister of Home Affairs, accused in OMC case)
  2. Mopidevi Venkata Ramana ( Ex-Minster of Shipping &Fisheries, accused in VANPIC case)
  3. Dharmana Prasada Rao (Ex-Minister of Revenue Department)
  4. K.V.P.Ramachandra Rao (Rajyasabha M.P, accused in Titanium sand mineral mining case, recently F.B.I issued Red corner notice on him) .

The above mentioned are people who are directly associated with the process of crony capitalism and state-corporate nexus. The list goes on if we look into politicians who has benefitted enormously from this process. As talked earlier business people  are politicians and politicians are business people here. This can be compared with faulty CSR practices of corporate bodies. Just as the corporates showcase themselves as the most responsible entities ever existed on this planet through CSR activities (not to forget all the corporate entities ferociously opposed the regulation of compulsory
2% of net profit allotment for CSR activities) these politico-business people try to garner support from general public by minimum discharge of their conditional duties as elected representative. This serves them both the purposes. They can showcase themselves as very responsible business person and also they can keep everyone and every system in their control. In-fact for general public they are the great Gandhians who has sacrificed their whole life i.e. Business interest to serve them. A Telugu saying explains this very aptly. “Oke debbaku rendu pittalu (Two birds for a single shot).

Now coming to the point of business systems. The undisclosed norm to do business is to follow a certain code of procedure. The code of procedure is as follows

  1. Identify the available options to do the business
  2. Determine the percentages or amount of investment that will be invested in the suitcase companies of Yuvaraja.
  3. Get allocated the resources whichever you want.

This is the standard code of procedure that has to be followed to do business in Andhra Pradesh. Almost all the investments that were done happened in the same way. Let us look into an example to understand this phenomenon. The issue of granting prospective mining license of lime stone mineral to Dalmia cements. Initially this started way back in 1997. One company named Jaya Minerals applied for prospective mining license of limestone mineral in 407 hectares in Kadapa district. But the application was not entertained because of insufficient details. In 2004 after Y.S.R took charge as chief minister the whole issue took a new turn. Another company named Eswar Cements came into picture and applied for prospective mining of the same saying that Jaya Minerals was merged with Eswar Minerals (The owner of this Eswar Cements was Sajjala Diwakar Reddy a close aide of Y.S.R and his brother Sajjala Ramakrishna Reddy is the editor in chief of Sakshi Newspaper owned by Y.S.Jagan). According to rules this application has to be rejected. But the then Director of Mines V.D.Rajagopal had acted according to the orders of the higher authority and had granted lease permission with the condition of transferring the lease to Eswar Cements in a span of 3 months. During 1997 when Jaya Mineral submitted their application they didn’t furnish wrong details about their address so their application was rejected, but in 2004 even though the same had happened license was granted for them. Later an application was filed on behalf of Jaya Minerals to transfer the lease to Eswar Cements and the lease was transferred to Eswar Cements. By this time on behalf of Dalmia Cements an official named Tugnite was inducted into the board of Eswar Cements. The lease was granted for 20 years. After this Eswar Cements didn’t construct any cement factory and again kept an application to transfer the lease to Dalmia Cements. In fact Eswar Cements had mentioned that the construction of cement factory was started on April  20th, 2007, but actually that was the cement factory of Dalmia Cements and both Y.S.R and Y.S.Jagan has attended that function. Before Eswar Cements applied for transfer of lease to Dalmia cements itself, Eswar Cements was merged with Dalmia Cements and this was kept under the carpet intentionally. To transfer a lease to another company the company which is transferring should be paid only the transfer costs. But here in this case the share capital of investors in Eswar Cements was 1.60 Crores but Dalmia Cements paid them 3.75 Crores for no reason. And also Dalmia has purchased shares in Raghuram/Bharathi cements owned by Y.S.Bharathi Reddy with a premium of Rs. 110 and later with a premium of Rs. 1440, in total 95 crores was invested in a new startup without any base. Later the share of Dalmia cements in Bharathi Cements was sold to a French company for 146 crores. And this money  instead of keeping with them was again paid to Jagan through some illegal means. Around 55 crores were paid and remaining amount is also expected to be paid and by that time C.B.I has exposed this Quid-Pro-Quo issue.
The above issue is the classic example of functioning of business entities during the tenure of Y.S.R. The list of Businessmen who were accused in various charge-sheets filed by C.B.I were

  1. Koneu Rajendra Prasad (EMMAAR estates and Titanium mineral mining cases, Y.S.R.C.P parliament candidate from Vijayawada constituency).
  2. Nimmagadda Prasad ( VANPIC case)
  3. M.Sreenivasa Reddy (Director, Hetero Pharmaceuticals, in Hetero case).
  4. K.Nithyananda Reddy (Director, Arabindo Pharma, in Arabindo case).
  5. Ayodhyarami Reddy (Chairman, RAMKY group, in RAMKY-APIIC case, Y.S.R.C.P parliament candidate from Narasaraopeta constituency)
  6. N.Srinivasan (India Cements case)
  7. Puneeth Dalmia (Dalmia Cements Case)
  8. P.Prathap Reddy (Chairman, Penna Group, in Penna Cements case)
  9. I.Shyam Prasad Reddy (Chairman, Indhu Group, Lepakshi Knowledge Hub case)
  10. P.Sarath Chandra Reddy (Trident Life Sciences Case)

This is how businesses were expected to be flourished in Andhra Pradesh and there is no wonder that out of 117 SEZ‟s only 32 are functional in this state. The concept of “Quid- Pro-Quo” was almost legalized and everyone is expected to tune their business activities in that manner. When everyone is talking about corporate ethics, corporate governance, good business that was what that happened in this state. Andhra Pradesh which ranked  second in Industrial Development has now stooped down to 6th.Many industries which were expected to establish their plants here have moved to Tamilnadu, Gujarat and other states. Here the logic is very simple. No business person will be interested in running his business at lower margins. The amount which has been spent on satisfying the ruling class will be eventually collected from the consumers itself.

These are few examples in Andhra Pradesh which clearly shows the nexus between crony- capitalists, ruling class and corporates which is leading to corporatization of politics. There is no need to say that these processes of corporatization of each and every system will eventually society into market society. Already this capitalistic system had transformed human beings to human resources, citizens to consumers and society to market. To show the immediate effect of this entire system the present elections and money power in these elections will serve as best example. Till now money and other items seized are

  1. 152 Crores cash
  2. 75 Kg gold
  3. 711 Kg silver
  4. 1.44 Crore liters liquor

If we calculate everything seized in terms of money the total money seized was around 720 crores. Out of total cash seized all over India 54% is from Andhra Pradesh. The limit of election expenditure for M.P candidate is 70 lakhs and for M.L.A candidate is 28 lakhs. With the money that was seized the election expenditure of all 42 M.P candidates and 294 M.L.A candidates can be met. This is the immediate and direct effect of Crony-Capitalism in Andhra Pradesh.

By observing the case of Andhra Pradesh it is quite clear that the corporatization of politics is not any regular phenomenon but another forward step in taking over the entire society and paving way for new model of colonization and imperialism i.e. colonization by corporates and other international agencies.

About The Writer: Gutta Rohith, is a student of Xavier Institute of Management pursuing Post Graduation Diploma in Rural Management and interested in Politics and Social Movements. You can reach him at Email:

pic: thehindu

About the Author

2 Responses to Crony Capitalism, Corporatization Of Politics and Broken System: The Case Of Andhra Pradesh – Gutta Rohith

  1. harish says:

    Very informative. Nicely compiled facts. Thanks.

  2. somasekhar says:

    very informative why dont you unmask the people who were benifitted during naidus regime and ntr’s regime.capitalism began with expected you people wont change.dont play those jewish media tricks before people.

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