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Topic-The Hawala Scam

The document discusses the 1991 Hawala scandal in India, which was a political and financial scandal involving illegal money transfers. [1] It summarizes that the scandal was uncovered when a raid on hawala brokers linked to militants in Kashmir revealed evidence of large payments to national politicians. [2] Many prominent politicians from different parties were implicated in receiving sums ranging from 50,000 rupees to 7.5 crore rupees, though court cases later collapsed without convictions. [3]

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Neha Gupta
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115 views

Topic-The Hawala Scam

The document discusses the 1991 Hawala scandal in India, which was a political and financial scandal involving illegal money transfers. [1] It summarizes that the scandal was uncovered when a raid on hawala brokers linked to militants in Kashmir revealed evidence of large payments to national politicians. [2] Many prominent politicians from different parties were implicated in receiving sums ranging from 50,000 rupees to 7.5 crore rupees, though court cases later collapsed without convictions. [3]

Uploaded by

Neha Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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GROUP MEMBERS
1) NANDKISHORE KEDIA

2) NAINSHEE SADRANI

3) NIKHIL S KAUSHIK

4) NEHA GUPTA
WHAT IS HAWALA??

•Hawala is a form of banking wherein money transferring is


based on owner system and human interaction.
•The fund transfer are quick safe, and secure. There are no paper
trials and taxation is avoided.
•Hawala generally used by criminal to avoid tracking of money.
•Hawaladars are the agents who conducts the transactions.

NEHA GUPTA
Introduction
The Hawala scandal, also called the
Jain Diaries case.
Or the hawala scam was an Indian
political and financial.
scandal involving payments allegedly
sent by politicians (black money)
through 4 hawala brokers, namely the
Jain brothers.
It was a US$ 18 million bribery scandal
that implicated some of the country’s
leading politician.

NEHA GUPTA
FRAME OF THE CASE 5

In 1991, an arrest linked to militants in Kashmir led to a raid on


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hawala brokers, revealing evidence of large-scale payments to 3
national politicians. On 25 March 1991, as per the court
proceedings published by the Supreme court of India, Ashfaq
Hussain Lone, a person alleged to be an official of the terrorist
organization Hizbul Mujahideen, was arrested in Delhi. During
his interrogation, the police learnt that his organization was
funded through hawala, using Surendra Kumar Jain and his
family as a conduit. Based on this and further information
received during Lone's interrogation, the Central Bureau of
Investigation (CBI) conducted raids on the premises of
Surrender Kumar Jain, his brothers, relatives and businesses.

NIKHIL KAUSHIK
DISCOVERY OF INVOLVEMENT OF 6

POLITICIANS IN HAWALA

Those accused included L.K Advani, V.C Shukla , Devi


Lal, Sharad Yadav, Balram Jakhar, and Madan Lal
Khurana and an entrepreneur from Hyderabad Anwar
Alvi. The list contained politician from multiple
political parties including BJP and Janta Dal and one
independent, with amount varying Between Rs
50,000 to Rs 7.5 crore The prosecution that followed
was partly prompted by a public interest petition and
yet the court cases of the hawala scandal eventually
all collapsed without convictions. Many were
acquitted in 1997 & 1998, partly because the hawala
records were judged in court to be inadequate as the
main evidence.

NANDKISHORE KEDIA
CBI REPORT 7

 Surindra Kumar Jain was arrested.


 Vineet Narayan also filed a complaint against
the Prime Minister.
 CBI was ordered to not reveal any information
to higher authorities.
 Mr. Narsimha Rao, the then Prime Minister
refused to be included in the scam.

NAINSHEE SADRANI
THE ISSUE IN THE RAJYA 8

SABHA 
Somnath Chatterjee who along with his
party noted for not having lost its luster
and in spite of knowing that they can make
the Government resign in any way but still
tabled the issue in the Rajya Sabha
thinking that this would at least carry some
moral weight and tarnish the reputable
high status of the ruling party. Another
eminent journalist Kuldeep Nayar also
brought into focus that there was a link
between the Hawala scandal and the
Kashmir issues which gained impetus in
1991.
NAINSHEE SADRANI
INVESTIGATION REPORT 9

 The Kalchakra video news cassette successfully proved the


involvement of top militants and Indian politicians.
 CBI was shocked with the video news and the then
Government banned the video cassette from the censor board.
 Vineet Narayan further went to the extent of appealing the
Film certification Tribunal.
 At last the ban on the Kalchakra video cassette was cleared
out by the Chairman of the Tribunal, Hon’ble Justice B.
Lentin.

NAINSHEE SADRANI
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