Wednesday, April 22, 2009

Real estate, Satyam and local goons in Hyderabad

Yes, Satyam provided livelihood for thousands of employees when it was run as a business. 

However, it was just a front for hoax companies that made money in other investments such as real estate and agriculture.  By inflating Satyam's revenues Mr. Raju and his team created an efficient machine to generate cash on the equity markets and then use that money to do whatever thay wanted - grow grapes and build apartments, among other things.
It seems unbelievable to me that people did not know this was happening.  Maybe many employees did not, however knowing the corruption in India's system I am sure there are many more who got rich due to this nice scheme.  The few auditors are just a drop in the ocean.

The real estate boom created by the economic growth in Andhra has lead to incredible riches for a few.  It is not by happenstance that people like Muralimohan have made thousands of crores in the Madhapur real estate boom.  Why Madhapur and no place else.  We have come to accept the corruption that was behing the whole high-tech city boom because we are just like sheep.  Why don't we ear about that few farmers who made hundreds of croses when they sold their land to developers? Because there aren't any.  Land grabbers just take whatever they want and leave nothing for the true owners.  Local authorities are either spineless and are scared of goons tied to political parties, or are themselves involved in taking bribes for dual registration of such lands. Congress is no better in such grabbing - it is just that whenever the government gives out a good fat contract one of its kith or kin will be a partner in the beneficiary company.  It is amazing how politicans have figured out ways of making money off of the taxpayers.

People who vote for politicians with a criminal record shoudl be ashamed for the same reason.  By giving them a legitimacy to carry on their evil deeds we are foregoing our right to question them.  Once they come to power, we don't see them doing much because they are busy making money for themselves and their family through the intelligence of their own or by riding on the back of people like Mr. Raju.  they also support an entire ecosysmte of local goons who survive in the name of the party's local strength.

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