Trailing The Panama Trail - Story from India

The Panama Papers: The untold India story of the trailblazing global offshore investigation

                             Authors: Ritu Sarin, Jay Mazoomdaar and P. Vaidyanathan Iyer 

                            Publisher: Penguin Random House  2019 

The book revolves around the leaks of the financial and legal documents of Panamanian law firm "Mossack Fonseca" by ICIJ (International Consortium of Investigative Journalists)  
ICIJ took up many projects to leak and investigate the few cases involving public interest like Paradise Papers, Panama papers, Swiss leaks, Luxembourg leaks etc which are related to public policy and shaped discourses in public life revolving around misuse of legal and regulatory framework in different countries.

Indian Express newspaper from India collaborated in the project by deputing the team of journalists namely Ritu Sarin, Jay Mazoomdaar and P. Vaidyanathan Iyer. This book is a recap of the process and findings by the trio. The book is divided into 13 chapters with a detailed introduction by the authors on the role and nature of investigation, code of ethics of ICIJ and secrecy around the project which will help in understanding the constrained atmosphere they had to work and limitations imposed due to secrecy.

Chapter 1 titled "Great Expectations" is basic introduction on how the three journalists were roped in by Indian Express which was collaborating in ICIJs unnamed project. The initial name of the Panama papers investigation was "Project Prometheus". A project which was going to affect the mighty and those in power and who's who across the globe was to kept secret till date of publication which was to be coordinated globally to avoid selective leakage. 

Chapter 2 titled "In White and Black" starts with the history of taxation in India and abroad tracing origins from Mesopotamia, Egypt and India. It also discusses how evasion and avoidance of taxes was prevalent then. From indirect taxes, taxes on agricultural produce and sales tax, inheritance tax to todays' complex system. The book provides anecdote regarding first rebellion by nobles of Aquitaine over tax riots in England in 1647. The tax on income was imposed first in Britain for a period of one year in 1842 as temporary measure to tax those with income above Pounds 150 annum. Infact the Income Tax Act of Britain expires every year on 5^th April and is renewed through annual finance acts. This is a very interesting and must read chapter which gives beautiful trivia related to tax and economy.

Chapter 3 “Taking the plunge” Making sense of the biggest leak ever and Mossack Fonseca (MF) discusses the modus operandi of MF. Being a secret project the utmost precaution and confidentiality was expected as any hint or leak may jeopardize not only the India related stories but will have ramifications over 250 reporters of ICIJ. The details of Mossack Fonseca and its network across nations though not formally operating in brick-mortar but through network of CA and Law Firms who acted as first point of reference

The chapter The Deep Dive discusses the names which were initially thrown up by the cursory search and how they were narrowed down through information to names like Lokesh Sharma, IPL fame, Rosy Blue diamond group of Mehta’s, Gehlaut family of India Bulls, PRS Oberoi of Oberoi Hotel fame. The detailed follow ups on each case are discussed in latter part of the book. 

Chapter 5 titled as “Knocking on Doors” and Chapter 6 “Hits and Misses” details the further investigation on the names coming in preliminary searches. The team divided the names into 3 categories as firstly those which were public figures and renowned corporates which were easily verifiable. Second category belonged to those names which were not prominent and were fronts of their employer’s family which required spot verification. This was done through network of already existing reporters of Indian Express. In few cases, the trio of Ritu Sarin, Jay and Vaidy themselves embarked on the process of verification of antecedents of the persons whose name appeared in the list and their experience is like one which the investigators of Income Tax dept come across often in their line of duty. The verification was to be conducted not only in Delhi but in Kolkata, Mumbai, Hyderabad etc. with confidentiality and 100 % accuracy. Each of the trail is an interesting read.

Some major breaks worldwide include names like Nawaz Sharif, former PM of Pakistan, Amitabh Bacchan and Aishwarya Rai, DLF Family head K.P. Singh, Gehlaut family of India Bulls, Vinod Adani, Niira Radia and IPL saga, Umesh Shahra of Ruchi Soya (now bankrupt) Fame among others. Infact, these leaks have caused some serious political upheavals across globe however their impact was limited in Indian Political space.

 

The last part of the books deals with the response of Government of India which is in public domain like instituting Multi Agency Group comprising CBDT, FIU, RBI etc. The veil of corporate secrecy and how in most of the cases it was the violation of domestic laws and regulations. 

 

The book is an excellent piece of investigation as well as it guides through basics of taxation from Acts  to case laws and case study. For people like me who worked in Investigation Directorate of Income Tax Department these are real life scenario’s whether be it a domestic case of tax evasion through innovative means or foreign bank accounts held without disclosing it to the tax authorities which is mandatory as per law. Still it can be made a compulsory read for Tax sleuths. 

This book is also a must read for people related to corporate and finance world to take Buddhas' message home that "Three things cannot be be hidden for long The sun, the moon, the truth”. So, no point in devising an escape. Law will catch you soon. This book is equally important for students of journalism so as to get them an idea of investigative journalism and convey that no story will reach you unless you step out of your cubicle to find one. This piece gives you reason to think as to why people the rich and wealthy find it tempting to open foreign bank account inspite of very competitive tax rates unlike in 1970s. Most of the accounts, offshore vehicles were incorporated post 1990’s when economy was liberalised. Merely opening of subsidiary or bank account is not illegal per so. It becomes one when there is no disclosure mandated by law. We know this is not the first expose nor the last one. 

Respect to the Indian Express and its team of journalists Ms. Sarin (more for she lost her spouse during the expose itself), Vaidy and Jay who pursued the lead and acted in confidential and devised their own strategy. The book like these are awards in itself to the writers for they have wider impact on public issues and policy matters concerning whole country as to how the system was manipulated through tax frauds, bribery, corporate jugglery and financial misreporting which can lead to distrust in system per se.

So, if you have an even an ounce of interest in the corporate world and investigative journalism, then this is must read.

 

 

 

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Kahani Khandhia ki: A Phiroze story

                Every book gives you some new insight, a new thought process or a point to ponder. That is why books are considered as guiding light leading us to new doors of knowledge world. So, when I picked Chronicle of a Corpse Bearer by Cyrus Mistry published by Aleph Book Company, I wasn’t aware of the content of the book but for the name. Few months passed by before the lockdown made me to pick up this beauty and reveal the mastery of words by Mistry.

             The book is a combination of biographical account and fiction simultaneously of a secluded world on which very few literary works exist. It tells a tale of very small yet significant sub-caste of Parsi Corpse bearers called as Khandhias and Nussesalars. Parsis' who follow Zoroastrian religion are small close knit community mostly in Bombay and Gujarat and have unique way to dispose of the dead i.e. by keeping the body at top of the Tower of Silence and letting the vultures feed the body. The tradition is centuries old and followed till date.

            Coming back to the book, it revolves around the life of a corpse bearer named Phiroze who was a son of Priest but accepted the job of which was considered lowly, to marry his love Sepidah who is daughter of a corpse bearer Temoo. Though the books main focus is corpse bearer, it gives considerable insights on the Parsi society, their cremation rituals, the family tiffs, the politics surrounding Parsi Punchayat which is highest decision making body of Parsi Community, the equations between various members, the discrimination met with the corpse bearers and most startling fact that there exists such casteism in Parsi which I was personally not aware.

            The book starts in the time around 1940’s when freedom struggle was gathering pace and the world war was going on. The passing references to the freedom struggle in Mumbai are there. The book is based in Mumbai and the vivid description of the Maximum city refreshes one’s memory from Docks to Seweree and Cumbala Hills to Nariman Point. One interesting fact that I came to know that dogs were used to confirm the death of a person in Persia as he writes, 

“Before modern medicine reserved that right for itself, it was canines that were believed to have an uncanny ability to sniff out the slightest flicker of vitality persisting in a body presumed dead.”

             The book brings to the core beliefs of Zoroastrians’ wherein Vispy (Phiroze’s brother) asks his father of the new incurable diseases, his father Framroze who was highly priest in Fire Temple states: 

“its because people have forgotten the conjunction between hygiene and spirituality… or because they presume it is inconsequential.” 

He further adds that personal hygiene and purity are essential prerequisites of spiritual progress.

            The book brings to the fore the intricate family relations existing between son and father, twin brothers, son-mother bond and how due to strained relation between father and son, parents’ relations are impacted. One powerful line 

“Together we were defined, happy, ourselves. Alone, we were amorphous, directionless, rather lost.”

            Stating his emotions Phiroze states, 

"… like everyone else, you see, I was an egoist. I used to believe too much in myself. But this job makes you aware that all that self-importance is nothing but illusion. What is a man in the end, Phiroze, but the powder of a few dried bones…”. He adds "Hope, that palliative of every human suffering: in desperation, we cling to the flimsiest of straws."

                 In the latter part of the book when Phiroze is retired and old, he compares the pre-independence life with the present one and points: 

“Politicians failed to act, reneged on promises; betrayed the people who elected them to office. Everywhere, everyone in public life, whoever he or she might be, is on the make, feathering a private nest. And so it has continued for decades. The only change I can make out in this compulsive industry is that incidents of fraudulence, cheating and theft of public money have accelerated both in frequency and volume beyond the wildest dreams of even those who first concocted them; until the very concept of probity in public life has become laughable.”

                The book ends with a note as to how population of vultures is declining over the years due to usage of a drug named Diclofenac and affecting  Parsi’s ritualistic sanctity. The Mistry’s mastery over word can be summed up in one of the closing paragraph as 

“The longer the human soul swims in that pool of faith, soaking in the effulgence of its own dreams and longings, the more its need for rationality recedes, its very preoccupation with reality. Excuses are made for every frustration or impediment that doesn’t quite merge into the perfect blueprint of miraculous resolution already etched into one’s hopes and prayers: thus, there’s never any scope for disappointment. The person becomes blind to everything but bewitchment of his own beliefs.”

                    Summing up, I'll just add that this is a book which one can read to expand the understanding the Zoroastrian world and Parsi life and more particular their Corpse Bearers and last rites rituals. 

Cyrus Mistry has done justice with the theme, with the subject and Khandhias. 

More Fire to him... 🔥