Editor Speaks: There’s an old saying that money is the mother’s milk of politics. In the Indian context, it’s more a question of milking the state. We have reached a level of cohabitation where money, corruption and unethical deal-making occupy the same bed. Increasingly, people are joining politics to make money or stay out of jail. Money power is the dominant factor in today’s electoral politics.
Back in the mid-90s when HNN was launched, I remember meeting politicians who were struggling to make ends meet. When we featured them next, they had become overnight millionaires. The point is not that we can’t have wealthy politicians but the question of how they earned their wealth. I am sure there are many legitimately rich politicians but politics increasingly resembles a profitable business rather than a public service today.
It wasn’t always so. Money power has played a positive role in politics: Industrialist G.D. Birla bankrolled Gandhi’s campaigns and along with other businessmen entered politics inspired by the freedom movement. It was in the late ’60s, when ‘Aya Ram Gaya Ram’ entered the political vocabulary, that money became a major factor. Since then the situation has only worsened with the dawn of coalition governments in the late ’80s.
With the likelihood of not being returned for the next term, they make hay while the sun shines and quite blatantly. No wonder many of these governments have been termed as ‘cash and carry’ ones. These days, it’s almost impossible to find a poor politician except among the Left parties. Adding to the scenario is the fact that a large number of businessmen have joined politics in recent years, either elected or nominated by various parties.
So who are India’s richest politicians? Thanks to a Supreme Court ruling in 2002, the filing of assets data is mandatory by anyone contesting an election. In order to establish exactly who are India’s rich politicians, we undertook a study along with EmpoweringIndia, an initiative of the Liberty Institute led by Barun Mitra. It took three months of exhaustive research at the Election Commission and Rajya Sabha Secretariat by staffers Swati Reddy and Kajol Singh under the supervision of Editor in Chief M H Ahssan to list the richest politicians whose submissions are open to debate.
The filing of assets data is mandatory but not verified. Some legislators have shown an increase in wealth of over 500 per cent in four years. Yet, the statistics are revealing. Of the 215 Rajya Sabha members for which we have data, 105 are crorepatis. Of the 522 Lok Sabha members, 135 are crorepatis.
Members of legislative assemblies seem wealthier than many of the MPs. The top five MLAs across the 30 states are worth Rs 2,042 crore. Uttar Pradesh has the richest chief minister and 113 crorepati MLAs. One indication of how this money has been accumulated is that of 150 wealthiest MLAs, 59 don’t even have a PAN card! Our cover story looks at India’s richest politicians across various categories. A handful are legitimate businessmen, the rest only serve to reinforce the dubious nexus between power and money.Richest politiciansA lean bare man on the banks of a river near Champaran, his eyes moist with sadness, letting go of his shawl for a poor woman downstream to cover herself and her child. This poignant moment from Richard Attenborough’s biopic on Gandhi is perhaps the most eloquent image of selfless politics.
The gentle giant—loved as Bapu and revered as the Mahatma—epitomised the philosophy of public service as one who gave up everything to be one among the huddled millions. Nearly a century later there is little evidence—in reel or real life—of the high moral ground once straddled by that generation.
The brazen parade of the Prada Prado set zipping across cities in cavalcades, appropriating security funded by public money is evidence that politics has since morphed into a largely self-serving enterprise. The pretense of khadi and Gandhian values went out of vogue with the Gandhi cap long before the Gucci generation stormed the political arena in the 1980s.
The transition is best described by Rajiv Gandhi who said at the Congress Centenary in Mumbai in 1985 that politics has been reduced to “brokers of power and influence, who dispense patronage to convert mass movement into feudal oligarchy”. Yes there are those who enter politics to serve the public cause but they are exceptions rather than the rule. Entering public life is now an investment of time and effort for dividends to be earned from political entrepreneurship. A joint study by HNN and EmpoweringIndia (an initiative of the Liberty Institute) of the reported assets of our elected representatives reveals a startling contrast between the rulers and the ruled.
In a country where over 77 per cent of the populace, or an estimated 836 million people, earn an income of Rs 20 per day and over 300 million are living below the poverty line, nearly half the Rajya Sabha members and nearly a third of those from the Lok Sabha are worth a crore and more. Just the top ten Rajya Sabha members and the top ten Lok Sabha members have reported a cumulative net asset worth Rs 1,500 crore. The 10 top losers in the last Lok Sabha polls—including Nyimthungo of Nagaland who reported total assets of Rs 9,005 crore —is Rs 9,329 crore. Members of legislative assemblies seem wealthier than many MPs. The top five MLAs across the 30 states are worth Rs 2,042 crore. Of these 150 crorepati MLAs, 59 don’t even have a PAN card.
And don’t look for a correlation between the state of the state and the wealth of the legislators. Uttar Pradesh boasts of the largest number of people—59 million or over a third of its population—living below the poverty line. Not only is Mayawati the richest chief minister in 30 states, the state also boasts of 113 crorepati MLAs. Similarly, Madhya Pradesh which has over 25 million of the 60 million people living below the poverty line boasts of 80 crorepati MLAs. The Marxists are the stark exception in this study too. The CPI(M) has 301 MLAs across 10 states but has only two MLAs with declared assets of over Rs 1 crore. Of the 537 candidates who contested on a CPI(M) ticket, only seven had assets of over Rs 1 crore, of which five lost in the elections.
As the old maxim goes, power begets power and money attracts riches. Clearly, it pays to be in power. Take the last round of Assembly elections which afforded the study an opportunity to compare the increase in wealth. In Rajasthan and Madhya Pradesh where the BJP was in power, the average assets of candidates increased by five times.
In Karnataka too where the Congress ruled in rotation with Deve Gowda’s JD(S), Congress candidates reported a fivefold rise in their assets. Mercifully, wealth doesn’t always ensure success. In all, 365 crorepatis contested the Lok Sabha elections in 2004; 88 lost their deposits, and 114 came second.
Last December in Delhi the Congress learnt this important lesson again when they found that Congress candidates who lost in Delhi were on an average richer than those who won. But wealth clearly does matter, all other things being constant.
The caveat emptor here, as with all matters concerning transparency in public life, is that we are going by what the political class has chosen to declare. After all, the statement of assets filed by candidates is at best a confession of sorts mandated by two Supreme Court judgements of May 2002 and March 2003.
There are several gaps in the information available. Of the 542 Lok Sabha members, details of assets are available for only 522. Similarly in the Rajya Sabha, only 215 members have filed details of assets.
There is no institutional mechanism to cross-check facts, nor is there a requirement for candidates to declare the source of wealth, or the increase in wealth of candidates in subsequent declarations. In Mizoram for instance, none of the 10 top candidates have reported possessing a PAN card even though their wealth is in excess of Rs 1 crore.
What is worse is that although MPs who are ministers file annual statements of their assets, the information is not available to the public. This virtually negates the concept of scrutiny that would prevent misuse of position of power and enrichment. Indeed, what should be openly available is denied even under the Right to Information Act.
It is tragic that the Office of Prime Minister Manmohan Singh—who has been described as integrity personified—has been made party to this decision to deny the information. Again, while Central ministers are required to file a statement of assets, there is no such requirement for ministers in states.
The adulterous cohabitation of power and pelf is conspicuous across the political spectrum. The chasm between the declared and perceived reality is all too obvious to be missed. Contrast the wealth reported and wealthy lifestyles of those elected to high office.
Clearly the tip of the benami iceberg has not even been touched. In a country with a stark asymmetry in opportunities and ability, political power enables bending and twisting of policy, converting politics into the elevator politicians ride to reach the pot of gold. Living room conversations in middle and upper middle class homes are dotted with whose son, daughter or son-in-law is raking it in using the benami route to accumulate property and assets.
Television footage of currency notes being waved in Parliament during the last trust vote, the airborne campaigns witnessed during the polls in Rajasthan and Madhya Pradesh, money spent in fielding dummy candidates, funding of party offices, travel in Toyota SUVs costing over Rs 75 lakh each and private charters that politicians avail of to fly within the country are all pointers that are hard to ignore.
Bankers and brokers talk in not so hushed tones about the role of politicians in corporate scams. There is also speculation about the real beneficiary and benami ownership of at least two airlines, several real estate ventures, pharmaceutical units and infrastructure companies. The corporate concept of ‘sleeping partner’ has a whole new connotation in the political world. As long as the real incomes, wealth and funding of politicians remain opaque, governance will continue to suffer and democracy will be rendered more often on the liability side in the balance sheet of development.
Television footage of currency notes being waved in Parliament during the last trust vote, the airborne campaigns witnessed during the polls in Rajasthan and Madhya Pradesh, money spent in fielding dummy candidates, funding of party offices, travel in Toyota SUVs costing over Rs 75 lakh each and private charters that politicians avail of to fly within the country are all pointers that are hard to ignore.
Bankers and brokers talk in not so hushed tones about the role of politicians in corporate scams. There is also speculation about the real beneficiary and benami ownership of at least two airlines, several real estate ventures, pharmaceutical units and infrastructure companies. The corporate concept of ‘sleeping partner’ has a whole new connotation in the political world. As long as the real incomes, wealth and funding of politicians remain opaque, governance will continue to suffer and democracy will be rendered more often on the liability side in the balance sheet of development.
Wealth leadership1. T. Subbarami Reddy
Indian National Congress
Rajya Sabha, Andhra Pradesh
Total Assets: Rs 239.6 cr
2. Jaya Bachchan
Samajwadi Party
Rajya Sabha, Uttar Pradesh
Total Assets: Rs 214.3 cr
3. Rahul Bajaj
Independent
Rajya Sabha, Maharashtra
Total Assets: Rs 190. 6 cr
4. Anil H. Lad
Indian National Congress
Rajya Sabha, Karnataka
Total Assets: Rs 175 cr
5. M. Krishnappa
Indian National Congress
MLA, Vijay Nagar, Karnataka
Total Assets: Rs 136 cr
6. MAM Ramaswamy
Janata Dal (Secular)
Rajya Sabha, Karnataka
Total Assets Rs 107.7 cr
7. Anand Singh
BJP
MLA, Vijayanagara, Karnataka
Total Assets: Rs 239 cr
8. Anil V. Salgaocar
Independent
MLA, Sanvordem, Goa
Total Assets: Rs 91.4 cr
9. N.A. Haris
Indian National Congress
MLA, Shanti Nagar, Karnataka
Total Assets: Rs 85.3 cr
10. Mahendra Mohan
Samajwadi Party
Rajya Sabha, Uttar Pradesh
Total Assets: Rs 85 cr
