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Ayush Taparia

In layman language, we can say that scam is an


attempt to defraud a person or group by gaining their
confidence, especially for making a quick profit.

It's a form of banking.
The possible origins of Hawala are in India.
It typically avoids the Western world's financial
countermeasures.
Money transferring is based on owner system & human
interaction is more critical.
The funds transfers are quick, safe, secure and
anonymous. There are no paper trails, and taxation is generally
avoided.
criminals use Hawala system to transfer the money because it is
not easy to track the money. 9/11 is the biggest example for this.
Someone working in the US wants to send some of his/her pay
to family in the India; this would be very legit. This is known as
"white" Hawala. The criminal, or terrorist, who take advantage
of this financial system is called "black" Hawala.



The Hawaladars are the agent who conduct their clients
transactions and move the funds around for them.
This Hawaladars get some commission from their clients
for transfer of money.

HAWALA SCANDAL

Hawala scam was probably the first scam that gave
the public an idea of the loot of national treasure
that was being implemented by the top politicians.
The scam revolved around the payments that the
politicians received from Hawala brokers , the Jain
brothers SK Jain, NK Jain and BR Jain.
Payments was being channelled to Hizbul
Mujahideen militants in Kashmir.
An arrest of two Kashmiris led to a raid revealing
evidence of large-scale payments to national
politicians.



However the Jain brothers were not detained for a
day, nor charged under TADA while the Kashmiris
were convicted and put behind the bars for years.
This anomaly showed that the system was not even-
handed.
It was a US $18 million bribery scan, which came in
the open in 1996.
Vineet Narain was responsible for bringing
the Hawala scandal to light.
The CBI seized their diaries in which the accounts of
payments were kept.


115 top bureaucrats were identified as having participated in
the scam.
No action was taken against them due to lack of hardcore
evidence.
However, the serious TADA case turned into a simple
corruption case for the politicians.
An important figure in the hawala network was Moolchand
Shah, an alleged associate of underworld don Dawood
Ibrahim. He was arrested by CBI under TADA.
The Supreme Court released him on bail.
Strangely, the state did not pursue his case further, and the
prosecution was dropped without any apparent reason.




TOP POLITICIANS INVOLVED IN HAWALA
LK Advani(the Leader of
Opposition at that time)
The former Union
Minister,P. Shiv Shankar
Janata Dal (U) president
Sharad Yadav
Gov MP
Balram.Jakhar
Senior politician and former
Union Minister,V.C. Shukla
Former Delhi CM
Madan Lal Khurana
AND MANY MORE
WHO GOT WHAT AS PER JAIN DIARY

LK Advani Rs 68.5lakh Bhartiya Janata Party
Arif Mohd Khan Rs 7.5 crore Independent
Arjun Singh Tiwari Rs 10.5lakh Congress
Yashwant Sinha Rs 21lakh Bhartiya Janata Party
Kalpnath Roy Rs 54.7lakh Congress
Devi Lal Rs 50 lakh SJP
Pradeep Kumar Rs 14.6 lakh SJP
VC Shukla Rs 65.8 lakh Congress
Balram Jhakhar Rs 61 lakh Congress
Madhavrao Scindia Rs 75 lakh Congress
RK Dhawan Rs 50 lakh Congress
Sharad Yadav Rs 5 lakh Janata Dal

Jafar Shareef Rs 15 lakh Congress
Buta Singh Rs 7.5lakh Congress
Kamal Nath Rs 22 lakh Congress
Arvin Netam Rs 50 thousand Congress
AK Sen Rs 20 lakh Congress
Natwar Singh Rs 23 lakh Congress
LP Shahi Rs 5 lakh Congress
Ranjeet Singh Rs 5 lakh Congress
ND Tiwari Rs 26.1 lakh Congress
Harmohan Dhawan Rs 1.1 crore SJP
Kailash Joshi Rs 10 lakh Bhartiya Janata Party
BD Dahkne Rs 10 lakh Bhartiya Janata Party
Madan Lal Khurana Rs 3 lakh Bhartiya Janata Party

VINEET NARAIN
(born 1956)
A prominent Indian journalist and anti-corruption activist.
He was responsible for bringing the Hawala scandal to light.
The case got a momentary boost up as a result of a PIL (Public
Interest Litigation) filed in the Supreme Court.
In 1996 for the first time in Indian history, several cabinet
ministers, chief ministers and governors were charge-sheeted.
Several landmark decisions were passed by the Supreme Court of
India in the Vineet Narain Vs Union of India and Ors case.
In July 1997, Mr. Narain compelled the Chief Justice of India
comment on the Hawala case.
He wrote a book on the case entitled Hawala ke
Deshdrohi or Dangerous Silence.

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