How do politicians earn crores without any investments or businesses while in public office?

 “How do politicians earn crores without any investments or businesses while in public office?” — This is a question that citizens in a democracy must seriously ask and examine. There are many unethical ways through which enormous wealth is accumulated. These methods usually exploit legal loopholes or operate openly illegally. Some major mechanisms include:


Positional Rent-Seeking:

  • Using insider information (Insider Trading)

  • Investing in stocks or real estate just before key government decisions

Money Laundering via Shell Companies:

  • Routing money through paper-only companies

  • Bringing in cash using fictitious invoices

Commission Culture:

  • Taking commissions for government contracts

  • Accepting money for appointments or promotions


💼 Earning Through Family Fronts:

  • Running businesses under the names of relatives

  • Awarding beneficial contracts to family members

There are several commonly used methods, some illegal, some morally questionable, and some subtle:


Corruption:

  • Widespread and deeply rooted.

Abuse of Power:

  • Allocating contracts or policies to favor specific individuals

  • Unfairly allotting government land at favorable prices

  • Favoring certain people during the issuance of licenses/permits

Taking commissions during government tenders, contracts, and licenses.
Even if not directly, these benefits often come indirectly through land, shares, or benami accounts.


Benami Properties:

  • Registering land and companies in the name of family/friends, while the actual control lies with the politician.


Donations as a Front for Money:

  • Companies or corporates donate to political parties (e.g., via Election Bonds)

  • These are often a trade-off for future contracts or favors


Real Estate Deals as a Source of Black Money:

  • Using political power to grab valuable land cheaply, changing ownership, and reselling it

  • This is where the term “land mafia” frequently surfaces


Policy Manipulation for Business Favors:

  • Tweaking policies to favor certain companies

  • Later taking shares from such companies (directly or indirectly)


Money Laundering Methods:

  • Hiding income via cash transactions (black economy)

  • Converting money through hawala systems

Many politicians create charitable trusts, fake companies, or educational institutions and route black money through them, claiming it as social service when questioned.


Election Funding as a Way to Funnel Crores:

  • During elections, cash, gifts, and bribes are distributed widely under the banner of campaign spending.

  • Later, this money is seen as a legitimate return.


👉 Corruption isn’t just a national issue — it exists at every level:
From village sarpanch to chief ministers, corruption can happen at any level, making a mockery of civic awareness and democracy.


Your question is highly valid:
“Is it possible to earn crores without any investment?”

For a common man, that is impossible.
But by manipulating and misusing political power, it becomes very much possible. To counter this, we need:

  • Legal action

  • Media scrutiny

  • Public awareness


⚖️ Some recent proven cases of suspicious political wealth accumulation include:


🏛️ 1. Adarsh Housing Society Scam – Maharashtra

The Adarsh Housing Society, a 31-storey building in Colaba, Mumbai, was originally intended for war widows and Ministry of Defence personnel. Over the years, it became a scandal involving politicians, bureaucrats, and military officials acquiring flats at below-market rates by bypassing rules related to ownership, zoning, and membership.

The CAG Report (2011) stated:

"The Adarsh Co-operative Housing Society episode shows how a group of select officials in key positions subverted rules for personal gain and appropriated prime government land."


🏗️ 2. Jal Jeevan Mission Scam – Rajasthan

A ₹1000 crore scam in Rajasthan's Jal Jeevan Mission involved former minister Mahesh Joshi and 22 others.
The Enforcement Directorate claimed the accused paid bribes to officials for contract approvals and to cover up irregularities.

It was found that ₹2000 crore was routed from his office to his son's company, according to the investigation.


🏘️ 3. MUDA Land Scam – Karnataka

The Mysore Urban Development Authority (MUDA) was caught in a land allotment scam.
The ED attached 92 properties worth ₹100 crore, exposing a major corruption case.


🛡️ To curb such unethical wealth accumulation, we need:

  • Strong RTI laws

  • Transparency in election funding

  • Independent watchdogs like Lokpal

  • Robust vigilance systems


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