KARAN SINGH WHO WANTS RENT HIKED FOR KASHMIRI PALACE MUST HIKE THE SALARIES OF AUROVILLE WORKERS.

 

DR.KARAN SINGH, The Honourable Chairman of Auroville Foundation, one day in recent past appeared in CNN-IBN Television or NDTV, my memory is not clear, wherein I heard him lamenting that the monthly rent for their ancestral Kashmiri Palace was only Rs 64,000 per month, which needs to be hiked. I did not hear why he sought the hike, or is it linked to price rise over which whole country is debating.

 

I thought if an Ex-Maharaja could find it difficult to tide over the problems caused by price rise, then what would be the fate of the poor Tamil labourers who are toiling in the 200 or so units run directly or through Trusts under Auroville Foundation?

 

In 1999, a Dutch Foundation, Stichting de Zanier sponsored a survey “to obtain a socio-economic profile of the employees in Auroville and to learn about the dynamics between Auroville and the villages that surround it.” Professor S.Gunasekaran, a specialist in demography, family formation and research methodology, who had worked among other positions, as Consultant for the World Health Organization before becoming the Head of Department of Sociology in Pondicherry University, conducted this survey with his team from Feb to July of 2000.

 

The report states “Our first job was to find out who, from among the respondents was truly an Auroville employee. Eventually we came to a number of 3762 persons employed in the period February to July 2000. The other interviewers were only incidentally working for Auroville. From these 3762 people, 33% said they were employed permanently, 50% replied that they were employed temporary but full time, 14 % did not know their status, 2% were contract workers and 1 % was working part time. We found that the average age of those working in Auroville is young 29.7 years. When we looked at the wages paid, we were amused that they were lower than we had expected. The average income was Rs 1545 a month. The total amount spent by Auroville on wages was about Rs 57.6 lakhs a month and we found that the 10 % of the employees in the highest income bracket took approximately 23 % of the total wages, while the 25 % in the lowest income bracket took only 10 %.This points to a lopsided distribution.”

 

This is a survey of 2000. The Report was filed in a publication by Mr.Carel Theime of BBC interview fame. There was a proposal to have the next survey after 7 years, the report said at that time. The BBC News Night of May 21st of 2008 among other things clearly mentioned the paltry pittance paid to workers in Auroville, thereby indicating even after 8 years of the survey the pathetic condition of Tamil workers in Auroville remains same.

 

Multinationals have come and if you compare the salaries with those under the management of the foreigner controlled Trusts and units within Auroville; you can evaluate the difference between both. Auroville, though its nomenclature remains as international city, remains a feudal village. The kind of infrastructure development near Industrial Parks or Special Economic Zones and the sleepy villages connected with dusty roads in Auroville needs comparative study to tell the world about the exploitation of Tamil workers in Auroville. The labour disputes pending before conciliation officers in Villupuram District for years, with arrogant white-men refusing to attend whenever called proves the inefficiency of Tamilnadu Government in protecting the interests of Tamil labourers. No where in India wages will be fixed by age wise except in Auroville, where these people claim they are creating an ideal society, and reaching the next stage of evolution by becoming Supermen with Super mind, but in reality they slide backwards in evolutionary ladder.

 

N.Nandhivarman General Secretary Dravida Peravai

 

 

Tags Categories: Politics Posted By: Nandhi Varman
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 16 Jun 2008 @ 6:27 AM 

VESTED INTERESTS IN AUROVILLE

VETO DR.KARAN SINGH’s REFORM:

 

Dr.Karan Singh could not carry forward his proposal with regard to the revised amendment to the Rules of the Auroville Foundation. Therein lies the power struggle between Karan Singh, who feels something, is wrong and needs correction, and the foreigners well entrenched to nourish their game plan to have control for themselves and keep Governing Board and its Chairman as puppets. This may be strong criticism, but that is what it means. Clothing their greed in polite words cannot always camouflage their ultimate aim.

 

Let me quote from the “ conclusions and recommendations of the study group constituted for examining the implications of the revised amendment to the rules  proposed by the Chairman in the context of the primary purpose of the Auroville Foundation Act”. The constitution of such group, from the report, appears to dilute Dr.Karan Singh’s proposals. We thank him for taking some initiative, instead of being totally a puppet in the hands of vested interests. But we wish to point out that he being a Member of Parliament is duty bound to ask for a Joint Parliamentary Committee to discuss his proposals to amend the Auroville Foundation Act. The Act is passed by the Parliament. And our Parliament is the right forum to decide upon amending the Auroville Foundation Act, taking stock of the past 20 years of experience of the working of the Act.

 

The arguments developed by Dr.Karan Singh in the preamble explaining the reasons that prompted the proposed revised amendment to Rules are as follows :

 

  • By transferring the responsibility for constituting the FAMC from the Governing Board to the Resident Assembly, the previously proposed amendment [in the year 2000] seeks to dilute the Governing Board’s statutory responsibility to secure proper management of the Foundations funds and assets.
  • The rules made under an Act of Parliament are subordinate or delegated legislation and cannot go beyond the explicit provisions of the Act. On this count, the rules suffer from infirmity, as in some cases, they seek to go beyond the provisions of the Act.
  • Besides the human asset, the properties [immovable  and movable including money] are the most important assets of any organization. The responsibility for Managing these two assets of the Foundation rests squarely on the Governing Board. Thus the governing board and its Chairman are in equal measure, accountable to Parliament for proper management of both— activities and assets.
  • In the eventuality of the assets being mismanaged, the Governing Board may not be able to absolve itself of its statutory responsibilities.

 

It becomes evident from the passages quoted above that the vested interests who are making hay while it shines wanted to amend the Auroville Foundation Act in 2000. And Dr.Karan Singh could not assimilate the arguments advanced and hence toyed with the idea of bringing revised amendment to rules. One mistake of Dr.Karan Singh that he should have discussed this issue in Parliament, which made the Act, and the Act that created the Governing Board.Dr.Karan Singh nominated by the Government of India is answerable to the Parliament elected by the people of India, and not the Resident assembly of Auroville , which is not even representative of a village panchayat under Indian local bodies act.

 

But Dr.Karan Singh was half hearted. He felt the throb to bring amendments and mooted proposals with earnest desire to debate in an internal forum, but forgot the national forum, namely the Indian Parliament where he should have introduced his proposals even as a private member bill, at least to draw the attention of Government of India, and Indian Parliament.

 

NOW COMES THE SUB-GROUP OF THE STUDY GROUP VETO of DR.KARAN SINGH’s  PROPOSALS:

 

“ Therefore we believe that a statement that Auroville properties and activities are to be directly managed by the Governing Board would be in contradiction not only of the primary purpose of the Act but also with the aims of Auroville envisaged by the Mother as expressed in Auroville charter for the furtherance of which Auroville Foundation has been established.”

 

“ It is also important in this context that the Mother envisaged Auroville as universal , free international city, with no army and police. This statement of hers suggest a polity quite different from what is usually known in terms of administration.”

 

“ A strict application of the letter and provisions of the Act without reference to its spirit as presented to the Parliament would defeat the primary purpose of the Auroville Foundation which is to encourage and promote the ideals and programmes envisaged in the charter of Auroville. Similarly any proposal for a revised amendment to the Rules and the restructuring of the FAMC such as proposed by the Chairman should be aligned with the spirit of the Act and ideals of Auroville “

  

Dravida Peravai comments :

 

The Directive Principles of the Constitution of India, wherein total prohibition is set as one of its goals is not enforceable. Similarly whatever vision Ms.Mirra Alfasa, the Mother of Aurobindo’s followers had about Auroville, that is not enforceable. If India could not realize the dream of the Father of the Nation Mahatma Gandhi, it cannot enforce the dream of a Mother of a Group , a miniscule among Indian people.

 

The purpose of bringing Auroville Foundation Act was to relieve it from the clutches of the then mismanagement, when it was realized the top V.I.P committed suicide, it is alleged to escape public scrutiny. India can have free ports, duty free ones, but not free international city, eroding its sovereignty, particularly in the world where terrorists are looking for safe havens to operate.

 

It is against Constitution of India, and even the mandate of Indian people to their elected Parliament, which cannot declare a town as free from army or police, like litter free zones.

 

These words prove the allegation of Ms.Rachel Wright in the BBC news night programme that what is aimed at is Vatican type of city, independent, out of India’s sovereignty. It also establishes that this NO POLICE policy only leads peadophiles like Didier Kiem, honourably given farewell and send off to continue with his crimes in Pondicherry for few more years till law catches them.

 

Tamilnadu Government headed by Dr.Kalaignar M.Karunanithi who sets up special economic zones bring development to the regions, but if he allows a city free from Indian laws, to keep his police away, as if it is a private property ,it will only end in tamils driven out as refugees from Auroville.

 

INSTITUTE OF PUBLIC AUDITORS OF INDIA opine :

 

In his letter dated May 12th of 2006, the Secretary of the Institute of Public Auditors of India made the following remarks:

 

“ We would reiterate that the relationship of these units with the Foundation is not clearly spelt out in any organizational guidelines”.

 

“ It would be appropriate if the Governing Board will initiate some discussions on the need for structural problems and inter se relationship between Foundation and the Trusts.”

 

THIS IS THE CORE ISSUE. SITTING UNDER THE PROTECTIVE UMBRELLA OF A GOVERNMENT FOUNDATION CREATED BY INDIAN PARLIAMENT, the white collar white men have set up various trusts which they want to run as feudal lords, not accountable to the Auroville Foundation or its Governing Board now headed by Dr.Karan Singh.

 

The charter says Auroville belongs to nobody but the whitemen, sorry we have no clour prejudice, we only nick name those who imagine they are in colonial period and come from superior race, which is against all that is being said that all are equals.

 

Auroville Charter states that Auroville belongs to nobody in particular. Auroville belongs to humanity as a whole. Then if it is so does it belong to the Tamils living in the villages for centuries, and are they made Aurovillians? Three thousand years ago Tamil poets told that every country is ours and all are our kinsmen. Such broad minded Tamils are not made Aurovillians, and it is cruel joke to proclaim Auroville belongs to nobody.

 

But to live in Auroville, one must be the willing servitor of the Divine Consciousness. Auroville will be the place of an unending education, of constant progress, and a youth that never ages. Well what is the yardstick to measure the level of human consciousness? What scanner the Auroville Foundation had imported to periodically check the level of human consciousness? If there is no scientific method or apparatus to evaluate the level of human consciousness for qualifying to live in Auroville, who is authorized to determine such admissions? We could not find a single youth in Aurobindo Ashram or Auroville nor Guinness Book of World Records has any entries about an international town whose youth never ages.

 

‘Auroville wants to be the bridge between the past and the future. Taking advantage of all discoveries from without and from within, Auroville will boldly spring towards future realizations. Auroville will be a site of material and spiritual researches for a living embodiment of an actual Human Unity.’ Sweet words but in reality ?

 

Before bridging past and future think of bridging the poor Tamils and affluent outsiders, and human unity can blossom only when human dignity of Tamils is respected.

 

N.Nandhivarman General Secretary Dravida Peravai

 

 

 

Tags Categories: Politics Posted By: Nandhi Varman
Last Edit: 16 Jun 2008 @ 06 39 AM

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 14 Jun 2008 @ 1:00 AM 


DR.KARAN SINGH INITIATE CORRECTIVE STEPS

 

You remain in ivory towers and have no touch with ground realities, I am sorry to point out. Let me quote from The First Post, the online daily magazine dated 24th May 2008 published in United Kingdom.

 

My Bizarre childhood in Auroville

 

The New Age commune revealed on TV is guiltier of child neglect than abuse, says Loic Rich.

 

“I was not surprised by the allegations of child abuse at Auroville – a progressive European community in India- that BBC news team made this week. As a 9 year old boy I lived there for three months in 1982. The place is a religious sect which shows up the arrogance, naivety and denial of liberal middle class values. It puts children in serious danger.

 

A town of great temple like structures set among palm trees in Tamilnadu region of south –east India, Auroville promotes a humanist philosophy, elements of Indian mysticism and a US frontier –style attitude. This either wore you down or toughened you up.

 

Adults work in construction, farming or even a newspaper, parenting is pretty low priority. Anyone could be a guardian, and children were left to run from the age of six. My own mother left me and my 7 year old sister to fend ourselves and disappeared to a remote section of the community to be with her lover. We had somewhere to sleep, a well managed primary school, and day trips on week ends. At meals time children ate by themselves, with a set of unwritten rules-if you got your hands on sweets you shared them with the group, else you ate outside.

 

Adults seemed to be there to provide for us, but with complete emotional disengagement. When the infection from a blister spread throughout my arm and I sought my mother for help, she just dismissed me as an attention seeker and I had to cycle to the doctor on my own. He rushed me to a hospital that had run out of anesthetic. I remember being held down by six medics while one made an incision with a scalpel and another squeezed the poison out of my arm.

 

I learned to fit in with the other children and we became emotionally dependent on each other, a kind of family, with the older children looking after the younger ones. Sex was a hot topic of discussion. Being only 9 I knew little of the facts of life, until they were graphically, alarmingly described by my Auroville peers. I heard of acts between fellow pupils, acts with children from the surrounding Tamil villages, and even what I would now regard as serious child abuse by adults.

 

Indeed, my sister twice had to fend off an attempted attack by an adult who persistently tried to get her to accept a lift home on his bicycle.

 

There were terrifying incidents of indecent exposure. We children rationalized the alleged abuse as something-along with snakes, monsoons and scorpions- that you just had to deal with in Auroville.

 

The solidarity among us was part Lord of the Files, part Jonestown cult. Together we shared a hatred for local Tamil children, who would apparently engage in sex for as little as five rupees, and those who had been excluded from school for various misdemeanors. I suffered this fate myself when I was wrongfully convicted of stealing a purse by a self appointed council of children. I was banned from the primary school, no longer welcome in my lodgings, distrusted even by the adults and sent to live in an isolated hut on stilts in a wood. I found the solitude strengthening, I made friends with two other exotically named outcasts-Gandalf and Mooney. Despite the horrors, there was something hopeful and well meaning about the place.

 

After my mother separated from her partner and fell ill we returned to the UK. Naïve young people come to Auroville searching for spiritual contentment. Although it espouses a seemingly charitable philosophy of living in harmony with Nature and your neighbors, and although it attracts support of the United Nations and Indian Government, the community fails in its most basic purpose. Auroville just does not know how to care for the people who come there.”

 

Courtesy: THE FIRST POST.

 

This is the first confession which spontaneously came out from a British in the aftermath of BBC news night.

 

Adecom Network, an non-governmental organization based in Puducherry in its Report on Women and Child Trafficking in Pondicherry released in 13th February 2003 .Adecom is a social voluntary organization registered in 1991, which stands for Animation, Development, Employment and Communication. Instead of quoting the full report let me quote the paragraph wherein Auroville finds mentions.

 

“Places like Auroville woman were exploited by the tourist people. They keep the woman for housemaids and using for indulging in sex activities also for a minimum salary. Some of the older tourists in the age of 60 or more marry very young girls in the age of 16 to 20. Because of poverty the young girls accept for marriage and lose their future. The foreigners called as Aurovillians take more advantage on widows for sexual abuse. Some women become drug addicts and underwent treatment too. In Auroville they have nice buildings for childcare and hostel for boys. In these places the boys were misused by the foreigners. For any awareness creation or rehabilitation the Foundation does not allow outsiders or sectors to their place. The information we collected is that Auroville itself did not take any effort to reduce the above mentioned problems.”

 

Courtesy: Report on Women and Child Trafficking in Pondicherry by Adecom.

 

 

The language of the report may not be scholarly but it conveys the message. This is published in Tamil in book form by an NGO from Bangalore known as Equations.

 

These will not be sufficient to convince our Dr.Karan Singh, who always thinks that curbing such crimes or weeding out weeds are not his job, and his duty is to ensure all such crimes should not tarnish the image of the institution. He is furious with the BBC reporter, conveniently forgetting that when his views were sought there was no response from his side, and after repeated attempts, emails to his official and personal ID did not bring the replies sought, it is reliably learnt. Ample opportunity was given to the self appointed spokesperson of the Auroville Foundation Mr.Carel Theime, and we leave it to those who saw the BBC to arrive at their own conclusion, when he said Didier Kiem was asked to leave, when he was suspected to be a peadophile. No other peadophile, he asserted. The question that haunted the minds of the viewers is instead of handing over to Police, why such pedophiles were just sent out?

 

Let me quote a letter in verbatim,[ the signed copies are available], a letter written by Mr.C.Balakrishnan, Joint Secretary [P] Tel: 3381096 Letter marked as Confidential/Most immediate Ref : No.F-27-39/2003-UU dated 30th June 2003, addressed to Dr.Kireet Joshi Chairman Auroville Foundation 36 Tuglabad Institutional Area , Near Batra Hospital, MB Road New Delhi.

 

Dear Dr.Kireet Joshi

 

It has brought to the notice of this Ministry that the Ashram inmates of Auroville Foundation, Pondicherry including foreigners are corresponding with the Ministries/Department of GOI directly to elicit favorable decisions.

 

It has also been brought to our notice that in the absence of Secretary Auroville Foundation, the Ashram inmates, especially foreigners are indulging in undesirable activities including acquisition of BENAMI private properties around the Ashram taking up commercial ventures, involvement of ANTI SOCIAL ACTIVITIES INCLUDING CRIMINAL GANG ACTIVITIES.etc.

 

Further it had been suggested that with a significant number of inmates being foreigners, there is an urgent need to fill up the post of Secretary to ensure proper monitoring of foreigners and their activities.

 

I shall be grateful if you could kindly look into these serious issues for immediate action and take appropriate security measures under intimation to this Ministry, while giving permission to foreigners in Auroville Foundation.

 

With Regards

Yours sincerely

C.Balakrishnan

 

I hope that Dr.Karan Singh will now feel relieved that such complaints had been aired even during his predecessor’s time, and his tenure is not the starting point of such crimes.

 

The BBC carried my interview, where I told “Till one gets exposed they shield them, and once exposed send them out. These people come to Pondicherry and continue there abuse against children. I had to take it up at national level”. In order to throw more light on this statement let me quote in verbatim a letter written by then Defense Minister of India, Comrade George Fernandes. {Ref: D.O No.99/RMR/VIP/868 dated 26th October 1999 addressed to Home Minister L.K.Advani.

 

“Dear Lalji

 

Enclosed herewith in its original a letter from Mr.N.Nandhivarman, General Secretary of the Dravida Peravai along with the enclosures attached thereto. As you can see the letter is addressed to you and has been sent to me only to forward to you.

 

The documents sent by him provide evidence of the practice of pedophilia in Pondicherry.It also appears that the law enforcement authorities have turned a blind eye to what is happening.

 

I hope you will direct the concerned authorities to take necessary action against all those involved in this crime against our children.

 

With Kind Regards

Yours sincerely

George Fernandes

 

HOME MINISTER REPLY:

 

Ref: No.U-677/HMP/99 dated 29th October 1999

 

Dear Shri Fernandesji

 

I am in receipt of your D.O. letter No: 99/RMR/VIP/868 dated 26th October 1999 enclosing therewith a letter addressed to you by Shri.N.Nandhivarman, General Secretary Dravida Peravai, 28, Romain Rolland Street, Pondicherry regarding alleged practice of pedophilia in Pondicherry.

 

I am having the matter looked into.

 

With Regards

Yours sincerely

L.K.Advani.

 

These letters prove my statement I took the issue up to national level culminating in the arrest of Didier Kiem in 2002, a man honorably sent out of Auroville without being handed over to Police, finally got the punishment.

 

So many people have started to debate about the happenings in Auroville, in response to my blogs. Let me quote a few here.

 

  1. sampradayak Says:

You are so right!Auroville is a neo-colonialist village occupied by the foreigners who enslaved the local Tamil populations!

Every foreigner has a personal Tamil amma or gardener now.
But the French woman Mira Richard who founded Auroville said that there must be no personal servants.

95% of Matrimandir was build by the hands of hired Tamil workers from villages.
But Mira Richard said that Matrimandir must be built by Aurovillians. Not by hired labor.

Bharath Nivas, Pavilion of India, was to showcase the best of India culture. The Central Gov. spends crores of rupees each year on it.
At the cost of Indian tax-payer the French and Germans do their salsa, jazz and western ballet/theater shows&workshops.
The French Aurovillians occupied Pavilion of India. There are almost no programs about Indian culture. But even these rare Indian cultural programs mostly are staged by foreigners who can pay the rent! SriAurobindo auditorium rent fee for showing French and German films is 10 times more than the rent fee for Indian cultural programs!!!!!!

  1. joywave77 Says:

It’s a bit more complicated, there are progs about Indian culture, -what progs, eh? Are they the best of India culture? no, 1 French told me frankly - they don’t want the best, they allow only the worst (uncultured locals, awkward oldies, graceless v.i.p.’s from Delhi), to show that Indian culture is junk!

 balachander cv said…

11:16 AM | 7/Jun/08 | |

 

It is true. Tamil culture is very much discriminated against in Auroville. Proof of it is for example this. The Central Government gives generous grants to maintain the Bharat Nivas complex, and to conduct activities in Sri Aurobindo auditorium. Jazz, salsa and hip-hop workshops? In Bharat Nivas, pavlion of India, only 5% of activities have some connections with Indian culture. But even in these 5% mostly foreigners are allowed to perform Indian cultural shows! As per Bharat Nivas rates, for showing a French movie, the French managers of aurofilm pay rs.400.For organising bharathanatyam programmes it costs rs.4000 -10 times more than for showing a French movie!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Is Auroville is still a French colony????????????



  1. mallikacute Says:



Large
amounts were stolen by the former treasurer of Matrimandir: a French man who
calls himself “Divakar”. The scam was very easy to discover as Divakar, contrary
to India’s
laws, didnot keep the bills for most expenses. No bills! A former Police Liason
officer of Auroville publicly accused this French man of siphoning of huge
amounts, and called for a thorough investigation of Divakar’s criminal
activity.



The donors
to Matrimandir were not informed that the crores were stolen!



Divakar,
who never pays the Indian income tax, does not have a job, officially “no
income”, now enjoys a very rich lifestyle, often travels around the globe,
stays in 5-star hotels, buys very costly gifts for his friends and girlfriends.
How?





Tags Categories: Politics Posted By: Nandhi Varman
Last Edit: 14 Jun 2008 @ 10 28 AM

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 13 Jun 2008 @ 4:57 AM 

HAND OVER MATRIMANDAR TO AUROBINDO ASHRAM

CONSTITUTE JOINT PARLIAMENTARY COMMITTEE TO AMEND AUROVILLE FOUNDATION ACT

We have seen many temples vested with Archeological Department of India had not been maintained properly. Usually a Government organization should function effectively and that is the order of the day in all countries except in India. That is why Indian people had lost faith in Indian bureaucracy. Similarly the dream project Auroville taken over from the hands of a Society had failed miserably in the matter of accountability. The mismanagement by Sri Aurobindo Society only led to the take over of the Auroville project by an Act of Indian Parliament called as The Auroville Foundation Act 1988. The same circumstances with regard to mismanagement prevail now, as would be known from the highlights of the Internal Audit Report of Institute of Public Auditors of India, Chennai chapter. Hence we urge the Ministry of Human Resources Development of Government of India to constitute a joint enquiry by a team comprising Comptroller and Auditor General of India, Central Bureau of Investigations and Enforcement Directorate .Based on the findings of such a team A Joint Parliamentary Committee should be constituted to bring in suitable amendments in The Auroville Foundation Act 1988. We feel Matrimandir must be handed over to Aurobindo Ashram, and as devotees they can manage their Mother’s Temple with dedication. This demand by Dravida Peravai which is fighting for the removal of the Aurobindo Ashram Trustees might surprise everyone. We want removal of Trustees, but most of the Ashramites are real devotees unlike the foreigners who use the mask of a Government Foundation to further their vested interests. The International Town which remains hidden amidst villages undeveloped to international standards must be made a Town where Tamils are in majority. Like Dr.Karan Singh’s Kashmir we are not saying other state people or other country people should not buy property here or live here. In Tamil soil making Tamils as beggars and bonded labourers foreigners should not establish a neo-colony, we are vigilant in this, and no Indian citizen will find fault with our approach. I had the Pondicherry Government Budget for 1974 in my hands before its presentation in Assembly by the 21 day Ministry headed by AIADMK’s S.Ramasamy. In my capacity as Propaganda Secretary of DMK for 1974 polls I worked hard but only 2 DMK legislators won, including Former Chief Minister M.O.H.Farook Maricar.The budget was read by Mr.M.O.H.Farook Maricar before then Chief Minister could read culminating in the defeat of 21 day Ministry. Similarly the Environment Impact Assessment ordered by Government of Puducherry about ground water pollution in Bahour-Kirumampakkam areas by Pondicherry University Professor Abbasi for years was not released, and people within Administration gave me the copy of the Interim Report which was released by Dravida Peravai, forcing Government to publish full report. Hence for public good, to generate awareness, and to draw the attention of the Government, in the absence of transparency in a Government organization answerable to Indian Parliament, we are reproducing the highlights of the Internal Audit, and it cannot be stated to be a secret, nor should it be kept in cold storage. For years same official remains Finance Officer defying the customary transfer in Government department to keep the administration clean, and a probe into Auroville functioning is necessary including transfer of officials who had remained for decades, working for their self Interest.

 

N.Nandhivarman, General Secretary Dravida Peravai

39 Montorsier Street, Puducherry 605001.

 

THE AUROVILLE FOUNDATION

INTERNAL AUDIT REPORT 2004-05

 

HIGH LIGHTS

 

1)                 In spite of enormous responsibility vested on the Foundation and high volume of transaction carried by about 192 units, the Foundation has no internal mechanism for periodical inspection of books and records of the units to ensure that they are functioning properly within the autonomy given to them.

 

(Para 2.03)

 

2)                 There is no centralized accounting of income reflecting totality of income and expenditure.  There is no overall budget for Auroville.  Foundation has no system to ensure that all money received through various channels have been properly accounted for and utilized.

 

3)                 The Foundation has not prescribed any regulations for fund raising.

(Para 3.1.1)

 

4)                 No regulations were framed u/s 32(2) of the Act 1988 regarding maintenance of accounts  

 (Para 3.1.2)

 

5)                 There is no system of physical verification of assets to ensure their    existence in good condition.

(Para 3.1.3)

 

6)         There are no regulations for borrowings.                                        

(Para 3.1.4)

7)         No investment policy has been laid down.

(Para 3.1.5)

 

8)          There is no system in the Foundation office to watch compliance of various duties assigned to the executives / Trustees

(Para 3.1.6)

 

9)                 There is no mechanism in the Foundation Office to ensure proper accounting and utilization of donations received.

(Para 3.1.7)

 

10)      In the absence of any regulations there were cases of disposal of movable property without the approval of Foundation Office.

(Para 3.1.8)

 

11)      Some of the provisions in the Trust Deeds are at variance with the delegation of powers approved by the Government.

(Para 3.1.9)

 

12)             The Income and Expenditure Account of Foreign Contribution Account does not reflect the total foreign contribution received during a year.  As per FC 3 return submitted to the Government of India under FERA the foreign contribution received in 2004-05 was Rs.13.95 crores as against Rs.6.38 crores shown in the Income and Expenditure Account.

(Para 3.2.1(b))

 

13)             Foreign contributions of Rs.10.16 lakhs received in kind were not accounted for in FC 3 return submitted to the Government of India.

 

(Para 3.2.10(a))

 

14)             As per Foundation Rules 1997 approved by the Government all monies received in Auroville are to be kept in a bank account with State Bank of India.  It is observed that bank accounts were maintained in other banks also.

(Para 3.2.1(d) 3.2. (b) 3.2.4 & 3.2.6(g))

 

15)             Some of the receipts issued for foreign contributions received were subsequently cancelled by pencil and in some cases in ink.  In none of these cases competent authority has authenticated the cancellations.

(Para 3.2.1(k))

 

16)             The Income and Expenditure Account (Indian Donation) does not indicate the actual donations received during the year.  The Indian donations received during 2004-05 amounted to Rs.1.67 crores as against Rs.2.00 crores shown in the Income and Expenditure Account.

(Para 3.2.2 (a))

 

17)             The cash and foreign exchange transactions handled by the Auroville Maintenance Fund ranged from Rs.78.49 crores to 149.33 crores during the last 5 years.  However, no rules and regulations were framed for administering the Maintenance Fund.

(Para 3.2.4(a))

 

18)             As per Delegation of Powers the Finance Committee and the Secretary are empowered to make long and short term investments.  However, the Executive of Maintenance Fund made investments without their approval.  Such investments for periods ranging from 91 days to 6 years stood at Rs.15.66 crores at the end of 31st March 2005. 

(Para 3.2.4(e)

 

19)      The Trust deeds do not contain any provision or authority for the Foundation to select auditors for the trusts. As the Settler of the Trusts the Foundation should have the right to appoint or prescribe a panel of Auditors and review their performance

(Para 3.10.c)

 

20)      Consolidated Receipts and Payments Account as required in the format of

            Account prescribed by Central Govt. has not been prepared               (para3.10.i)

 

 

21)  There is no system of ascertaining the reasonableness of the prices paid for   the land acquired by the Foundation.                                             (Para 3.2.5 (a)

 

21)      There is no practice of obtaining prior sanction of the competent authority before incurring expenditure on stamp duty, commission paid to intermediaries and other related expenses while purchasing the land for Auroville.

(Para 3.2.5(b)

 

22)      No enumeration has been done of the trees available/ planted in the geographical area of Auroville at a cost of Rs.73.62 lakhs.

(Para 3.2.5 (c)

 

23)      The loss on sale / exchange of land is not accounted for.

(Para 3.2.5(e)

 

24)      Approval of the Government is not being obtained for purchase of land wherever the cost involved is more than Rs.1 crore value.

(3.2.5 (i)

 

25)      No master plan based on “Mother’s vision of Matrimandir” detailing its implementation and monitoring mechanism, mobilization of resources, time schedule for completion, etc. has been prepared for systematic and speedy execution of the project.

(Para 3.2.6(a)

 

26)      Refund of customs duty forgone due to non adherence of the prescribed

            Procedures amounted Rs.27.68 lakhs.

(Para 3.2.6 (b)

 

27)      Indigenous and foreign contributions received for Matrimandir during 2004-05

            were not released in full for the purpose.

(Para 3.2.6 (d))

           

  

1. THE FOUNDATION

1.01         Auroville founded by the ‘Mother’ In Feb. 1968, developed as a cultural township with the aid of funds received from organizations in and outside India as also from substantial grants received from the Central and State Governments and the United Nations Educational Scientific and Cultural Organization, contributing to international understanding and promotion of peace. For the purpose of encouraging, continuing and consolidating the aforesaid activities of Auroville it became necessary, in the public interest, to acquire the undertakings of Auroville. Auroville was vested in the Central Government under Sec.3 of the Auroville Foundation Act, 1988 and was held by the custodian till the 31st March, 1992 on behalf of the Central Govt. together with the right, title and interest. Thereafter the said undertaking was vested in the Auroville Foundation established by notification dated 29th January 1991 of the Govt. of India with effect from 01.04.1992 together with the right, title and interest.

1.02    The Auroville Foundation constituted under the Act comprises of three principal authorities via. (i) The Governing Board, (ii) The Resident’s Assembly and (iii) Auroville International Advisory Council.

1.03    The Governing Board consisting of members nominated by the Central Govt. have the power for general superintendence, direction and management of the affairs of the Foundation and exercise all the powers and discharge all the functions which may be exercised by the Foundation under the Act; inter-alia .including :

a)     reviewing basic policies and programmes and giving necessary directions for the future development of Auroville

b)     according approval to the programmes drawn up by the Residents Assembly   and

c)      Monitoring and reviewing the activities of Auroville to ensuring proper management of the properties vested in the Foundation. The Act also envisages that the Foundation shall prepare a master plan of Auroville. The Act envisages that the Foundation shall be accountable to the Govt. and the Parliament and for the purpose shall have Annual Accounts prepared and duly audited by the Comptroller and Auditor General of India (C&AG). The form of Accounts shall be as prescribed by the Central Govt in consultation with the C&AG.

1.04    Present Status

There are at present about 200 units/entities engaged in various activities, some commercial in nature, some service oriented including research, some in manufacture. They are not easily correlated to the main objectives of the Foundation, There does not appear to be any long term policy or plan for these units. They however, are entrusted with the assets of The Foundation, deal with the public and their relationship and accountability to the Foundation and to the Govt and the Parliament is informal and not often enforced. While it may be desirable to democratize various activities in Auroville with the Residents Assembly as the fountainhead of legitimacy, there are serious deviations from the accepted canons of propriety and public accountability as enumerated in the succeeding parts of this report. This raises legitimate concerns about the compliance not only with the letter and spirit of the Act and the Rules, but also the appropriateness of the Foundation acting as an umbrella for organizations that have very little to do with the “Vision”. The manner of appointment of Trustees and supervision over the operations of TRUSTS handling large sums of public moneys need a close review. Selecting a few individuals who are not employees of the Foundation and who are not treated as public servants with no defined accountability or fiduciary responsibility, and entrusting large sums of public moneys, without the discipline of well defined financial rules and procedures appear to be hazardous and certainly not in public interest.

If it is considered that the Foundation should have a minimal role in the operation of Trusts that use its resources (including land), alternative systems including statutory changes are required .This may involve a deliberate and systematic delinking.

 

1.05    The Residents’ Assembly consisting of all the residents of Auroville advises the Governing Board in respect of all activities relating to the residents of Auroville including admission of persons in the Register of Residents of Auroville. A Working Committee of the Residents’ Assembly has been constituted under the Act. The Working committee is empowered to create or constitute other organizations, trusts, societies or associations to carry on activities relatable to Auroville, with the approval of the Governing Board of the Foundation. They are subject to their commitment to the ideals laid down in the charter and are mandated to function in conformity with the decisions of the Governing Board.

1.06    The Auroville International Advisory Council consisting of nominated members by Govt. to advise the Governing Board on any matter relating to the development and management of Auroville.

1.07    The Powers to make Rules governing the operations and management of the foundation and its organs vests in the Central Govt. The Rules currently in force are given in Appendix. The Rules vests the authority to deal with the assets of the Foundation exclusively in the Governing Council. The Governing Council may refer matters relating to Funds and Assets to a Committee called Finance Committee comprising the Financial Adviser to the Ministry, as the Chairman, the Secretary of the Foundation and other representatives of the Govt and the Governing Board as members.

Under the Rules another body constituted by the Residents Assembly - Funds and Assets Management Committee has been empowered to decide on all issues related to funds and assets of the Foundation, subject to a Veto by the Finance Committee or the Board.    

 

[ incomplete, only extracts are given here to initiate debate]

Tags Categories: Politics Posted By: Nandhi Varman
Last Edit: 13 Jun 2008 @ 05 18 AM

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 12 Jun 2008 @ 5:50 AM 

OPEN LETTER TO HUMAN RESOURCES MINISTER MR.ARJUN SINGH and

AUROVILLE FOUNDATION CHAIRMAN DR.KARAN SINGH ON MATRIMANDIR SCAM

 

The Indian citizen is the Supreme authority in Indian democracy. To empower Indian citizens with powers to act as checks and balances against misuse of power, the greatest achievement, is armoring the Indian citizen with a Right to Information Act. Auroville Foundation is answerable to Indian Parliament; thereby it implies it is bound to answer any Indian citizen. Under Right to Information Act, as per the website of Auroville Foundation, in past three years only one had asked information, but they say that application is disposed of instead of being transparent whether answer is provided or not. All other years only “Nil” is shown against  all columns. Hence I had sought information, and awaiting answers, since the stipulated time to reply has not come to an end.

 

Matrimandir, the temple which is being built from 1971 to 2008, yet to get completed, is one of the main areas, where Indian Human Resources Development Minister Mr.Arjun Singh must focus his attention. We in South India know that one Golden Temple had come up in Vellore and another in Andhra Pradesh borders, built by Indian God-men. We wonder why the foreign brains which live under the illusion they are superior on Earth had not completed the Matrimandir for nearly 37 years. We suspect corruption. To substantiate our suspicion, we are quoting in verbatim the concerned pages regarding Matrimandir prepared by Institute of Public Auditors of India, as internal audit. We urge that in Foundation’s website the Reports of Comptroller and Auditor General of India, since Auroville Foundation Act came into existence, should be uploaded, after all this Institution is not for foreigners and by the foreigners. The Chairman must answer, or the Secretary of the Foundation must answer to Indian public, and they cannot shirk responsibility and pass the buck to some foreigner, who is not answerable to Indian Parliament. This is the first of the 100 Questions we will raise for generating awareness about the happenings in Auroville and to ensure Government of India intervenes to effect amendment to Act and initiate corrective measures.

 

N.Nandhivarman

 

General Secretary Dravida Peravai

39 Montorsier Street, Puducherry 605001.

 

 

3.17    MATRIMANDIR

 

             The Matrimandir, a huge sphere which contains a white chamber in which sun light pours down upon a glass globe, is both the geographical and spiritual centre of Auroville.  The Matrimandir is a place of silence and concentration.  The Mother approved the model of Matrimandir and the foundation stone there for was laid on the 21st February 1971.  The major areas of work on the structure are under completion and attention is being given to the development of surrounding garden and a lake. Completion of main structure alone (sans lake and garden) is scheduled for completion in February 2007.  The Matrimandir together with its gardens extends over an area of 28 ha.  Mr. Roger Anger a close disciple of Mother has been named by her as Chief Architect of Auroville Town Ship and Matrimandir.  It was stated The Mother has explained her vision of Matrimandir to Mr. Roger Anger and Matrimandir is being executed as per her vision.

 

            A perusal of records made available revealed the following:

 

a)        No Master plan based on Mother’s vision detailing implementation and monitoring mechanism, mobilization of resources, time schedule for completion etc. has been prepared for systematic and speedy execution of the project. 

 

b)        Before a project is taken up for execution, a project report is to be prepared  containing inter alia,

 

i)                    detailed estimate indicating the nature and volume of work to be done.  This should be supported by designs, plans and other related documents.

ii)                  The approximate cost of execution based on the above estimates indicating the cost of the materials to be purchased, labour charges to be incurred and administrative / other incidental expenses.  The rates adopted would be supported by schedule of rates prevailing in the locality; and

iii)                The time schedule for the completion of each activity and the project as a whole.

 

Once this is prepared, this should be scrutinized by a competent technical authority who would examine its technical viability and its cost effectiveness. After the technical sanction, financial sanction of the nominated authority is to be obtained before the work is taken up. 

 

c) It is observed that no such procedural formalities indicated in (b) above were adhered in the case of Matirmandir. 

 

            It is observed that the Matirmandir project cost would work out to several crores of rupees.  A sum of Rs. 26.60 crores has been spent on the project to end of March 2005.

 

d)  In spite of the huge volume of work and cost involved no detailed procedure has been laid down for preparation of estimates, getting technical and financial sanctions, fixing norms for calling for tenders/quotations and placing of purchase orders for procurement of materials, etc.  The system of maintaining Measurement Books to record, measure and check measure the work done, which is a requisite in the execution of civil works is also not in vogue.

 

            On 26th August 2003 the Matrimandir core group appointed a Consultant Engineer for Matrimandir Project and decided that henceforth all work proposals should be presented to the core group after they are approved by the Consultant Engineer.  The Consultant Engineer desired that all work proposals sent to him for approval should be accompanied by:

i)                    sketches/drawings approved by Shri Roger Anger, Chief Architect or site architects.

ii)                  detailed estimated quantities of various items of work

iii)                detailed financial estimates supported by enquiries, quotations etc.

The Consultant Engineer also named three site engineers for the project.   

 

            In July 2004 a cost estimate for completing the remaining works of Matrimandir building structure at cost of Rs.506 lakhs was prepared.  It could not be ensured whether the approval of Consultant Engineer was obtained after following the above procedure laid down by him as the relevant records were not made available for verification.

 

            It is observed that there was no provision in the estimate to incur expenditure on “Water proofing of hemisphere”.  However, an expenditure of Rs.32.03 lakhs has been incurred to the end of October, 2005 on this item of work.  Further, there was an excess expenditure over the provisions made in the estimate to an extent of Rs.62.30 lakhs to the end of October 2005 in respect of other items.

 

            It is observed that monetary resources were not a constraint in the execution of the project as seen below:-

 

Year            Fixed         Donations received            Expenditure

                     Deposits      (Foreign & Indian)

 

2000-01          75.16 lakhs            3.31 crores                                2.99 crores

2001-02         88.17                        1.84                                       1.71   

2002-03         89.02                        1.36                                       1.20   

2003-04         95.39                        1.99                                       1.33   

2004-05         68.57                         2.41                                       3.23   

 

            The work started in February 1971 involving an investment of Rs.26.60 Crores up to the end of March 2005 still remains incomplete and the Mother’s wish that “the Matrimandir will be the soul of Auroville” is yet to fructify even after 34 years.

 

Other observations:

a)     Refund of customs duty not obtained  - loss of Rs.27.68 lakhs.

 

Matrimandir is eligible to import goods without the payment of customs duty on the production of essentiality certificate.  It is observed that the goods were cleared by paying customs duty due to delay in the receipt of essentiality certificates from DSIR of Science and Technology Ministry, as non-clearance of goods would result in payment of demurrage charges.  Under Section 27 of Customs Act, one year time is allowed in such cases for filing applications for the refund of customs duty already paid.  In the case of materials  listed out in annexure, it is observed that the Matrimandir lost a sum of Rs.27.68 lakhs on account of

(i)         belated receipt of essentiality certificates and

belated filing of return for refund                                          Rs.   1,94,124

(ii)        essentiality certificate recd. in time but filed belatedly      Rs.   8,50,954

(iii)       essentiality certificate applied for in 1999-2000

but not received so far                                                          Rs.  17,22,459

                                                                        Total                            Rs.  27,67,537

 

There is no mechanism for effective follow up of receipt of essentiality certificates and refund claims.

 

b)  Non-Maintenance of FC 6 Register.

            As per FERA, organizations receiving foreign donations in kind should maintain a separate stock register of such donations in FC 6 format.  It is however, observed that Matrimandir receiving foreign contributions in kind directly is not maintaining FC 6 register.  Further there is no system of intimating the receipt of foreign contributions in kind to Auroville Fund (Foreign Contribution Acccount) which complies FC 3 return of foreign contributions received in Auroville for submission to Government of India.  As a result foreign contributions of Rs.12.09 lakhs received in kind during 2003-04 to 2005-06 did not figure in the FC 3 returns of respective years.

 

c)  Non-releasing of funds.

Foreign and Indian contributions received for Matrimandir during 2004-05 were not released to Matrimandir in full.

                                                                              Received                  Released

                                                                                          Rs.                     Rs.

 

Foreign contributions                                          98,62,282                   65,91,770

Indian contributions                                             96,74,503                   49,73,661 *

 

*including Rs.60,660 relating to 2003-04

           

The reasons for short release of funds are not on record.  Matrimandir is also not being informed about the total contributions received so that is could plan the execution of works in time.   

 

d) Gliding Equipment returned not reflected in the accounts.

On the recommendation of FAMC a gliding equipment with accessories worth of Rs.8,00,806 received was returned in 2003-04 to the donor as they are not required at Matrimandir. However, this Transaction was not reflected in the accounts for the year 2003-04.

 

e) Materials lying outside Auroville not reflected in the accounts.

A perusal of the Balance Sheet as at 31.03.2005 revealed that an amount of Rs.3,50,000 advanced to M/s Hindustan Safety Glass Ltd. paid on 24.04.1998 was shown as outstanding advance and the value of materials amounting to Rs.9,30,909 unloaded on 20.09.1997 at the premises of the company has not been disclosed in the accounts.

 

f)  Depreciation of assets

Matrimandir has been under construction from 1971 and the work is still in progress as it involved different kinds of works viz. Inner Chamber, Inner skin, construction of petals, completion peace trees, etc.  The cumulative cost of this project from 1971 amounted to Rs.26.60 crores as on 31.03.2005 and no depreciation has been provided on this asset.  Though the project has not been completed as a whole and in principle no depreciation is chargeable, the assets created during the last 34 years would be subject to wear and tear due to efflux of time.  Hence, non-provision of depreciation is not in accordance with the generally accounting principles.

 

g) Banking transations

 

i)  As per Auroville Foundation Rules, 1997 all monies are to be kept in a bank account with State Bank of India.  It is however, observed that Matrimandir is having bank account with Karur Vysya Bank, Vysya Bank, and State Bank of India which is against the Rules of the Foundation.

 

ii)  It is observed that Matrimandir requested the Foundation Office on  11.08.2004, to release a sum of Rs.25,00,000/-.   As there was no sufficient funds in the account of Foundation, over draft facility was availed and Rs.25 lakhs was released to Matrimandir.  For availing the overdraft the Foundation incurred an interest of Rs.47,470. It is however, seen that on 14.08.2004 Matrimandir deposited this sum of Rs.25 lakhs  in one of its bank account for 3 months.  Obtaining an over draft and depositing the same in term deposit account is not justified.

 

iii)  It is also observed that moneys were transferred from one account to another in the last week of a month vide instances given below:-

 

Date of Transfer   Amount Transferred      Balance available

                            From Karur Vysa Bank                  Date             with S.B.I.

                            To S.B.I (Rs.)        

 

27.05.2004                1,50,000                                 31.05.2004                2,25,634

30.07.2004                1,50,000                                 31.07.2004                1,75,700

27.08.2004                2,50,000                                 31.08.2004                2,72,655

 

Note:  There were no transactions in between these dates.

 

            As transfer of funds after 10th of every month results in foregoing interest such transfers are to be avoided except in case of actual need.

 

For Institute of Public Auditors of India

Dated: March 22, 2006

(John Varghese)

Secretary, Chennai Chapter

 

 

Tags Categories: Politics Posted By: Nandhi Varman
Last Edit: 01 Jan 1970 @ 05 30 AM

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 11 Jun 2008 @ 7:34 PM 

M.R.Venkatesh writes :

 

By now it is becoming too obvious that the United States is playing the oil game all over again. And this is the desperate gamble of a country whose economy is neck deep in trouble.

 

Given this scenario, managing prices of oil is central to the US economic architecture. Expectedly, this gamble has been played in a great alliance between the US government, US financial sector and the media.

 

I have earlier written about:

 

The impending collapse of the US dollar on account of the inherent weakness in the US economy caused by its structural weakness as reflected in the sub-prime crisis;

The repeated softening of the interest rates in the US that has the potency to kill the US dollar; and

How the fall in the US dollar suits the US corporate sector, especially its omnipotent financial sector.

Naturally, since the past few years, the US financial sector has begun to turn its attention from currency and stock markets to commodity markets. According to The Economist, about $260 billion has been invested into the commodity market — up nearly 20 times from what it was in 2003.

 

Coinciding with a weak dollar and this speculative interest of the US financial sector, prices of commodities have soared globally.

 

And most of these investments are bets placed by hedge and pension funds, always on the lookout for risky but high-yielding investments. What is indeed interesting to note here is that unlike margin requirements for stocks which are as high as 50 per cent in many markets, the margin requirements for commodities is a mere 5-7 per cent.

 

This implies that with an outlay of a mere $260 billion these speculators would be able to take positions of approximately $5 trillion — yes, $5 trillion! — in the futures markets. It is estimated that half of these are bets placed on oil.

 

Oil price hike: Govt can’t save you: PM

Readers may note that oil is internationally traded in New York and London and denominated in US dollar only. Naturally, it has been opined by experts that since the advent of oil futures, oil prices are no longer controlled by OPEC (Organization of Petroleum Exporting Countries). Rather, it is now done by Wall Street.

 

This tectonic shift in the determination of international oil prices from the hands of producers to the hands of speculators is crucial to understanding the oil price rise.

 

Today’s oil prices are believed to be determined by the four Anglo-American financial companies-turned-oil traders, viz., Goldman Sachs, Citigroup, J P Morgan Chase, and Morgan Stanley. It is only they who have any idea about who is entering into oil futures or derivative contracts. It is also they who are placing bets on oil prices and in the process ensuring that the prices of oil futures go up by the day.

 

But how does the increase in the price of this oil in the futures market determine the prices of oil in the spot markets? Crucially, does speculation in oil influence and determine the prices of oil in the spot markets?

 

Answering these questions as to whether speculation has supercharged the demand for oil The Economist, in its recent issue, states: ‘But that is plain wrong. Such speculators do not own real oil. Every barrel they buy in the futures markets they sell back again before the contract ends. That may raise the price of ‘paper barrels,’ but not of the black stuff refiners turn into petrol. It is true that high futures prices could lead someone to hoard oil today in the hope of a higher price tomorrow. But inventories are not especially full just now and there are few signs of hoarding.’

 

On both counts — that speculation in oil is not pushing up oil prices, as well as on the issue of the build-up of inventories — the venerable Economist is wrong.

 

The finding of US Senate Committee in 2006

 

In June 2006, when the oil price in the futures markets was about $60 a barrel, a Senate Committee in the US probed the role of market speculation in oil and gas prices. The report points out that large purchase of crude oil futures contracts by speculators has, in effect, created additional demand for oil and in the process driven up the future prices of oil.

 

The report further stated that it was ‘difficult to quantify the effect of speculation on prices,’ but concluded that ‘there is substantial evidence that the large amount of speculation in the current market has significantly increased prices.’

 

The report further estimated that speculative purchases of oil futures had added as much as $20-25 per barrel to the then prevailing price of $60 per barrel. In today’s prices of approximately $130 per barrel, this means that approximately $100 per barrel could be attributed to speculation!

 

But the report found a serious loophole in the US regulation of oil derivatives trading, which according to experts could allow even a ‘herd of elephants to walk to through it.’ The report pointed out that US energy futures were traded on regulated exchanges within the US and subjected to extensive oversight by the Commodities Future Trading Commission (CFTC) — the US regulator for commodity futures market.

 

In recent years, the report however pointed out to the tremendous growth in the trading of contracts which were traded on unregulated OTC (over-the-counter) electronic markets. Interestingly, the report pointed out that the trading of energy commodities by large firms on OTC electronic exchanges was exempted from CFTC oversight by a provision inserted at the behest of Enron into the Commodity Futures Modernization Act in 2000.

 

The report concludes that consequential impact on account of lack of market oversight has been ’substantial.’

 

NYMEX (New York Mercantile Exchange) traders are required to keep records of all trades and report large trades to the CFTC enabling it to gauge the extent of speculation in the markets and to detect, prevent, and prosecute price manipulation. In contrast, however, traders on unregulated OTC electronic exchanges are not required to keep records or file any information with the CFTC as these trades are exempt from its oversight.

 

Consequently, as there is no monitoring of such trading by the oversight body, the committee believes that it allows speculators to indulge in price manipulation.

 

Finally, the report concludes that to a certain extent, whether or not any level of speculation is ‘excessive’ lies entirely in the eye of the beholder. In the absence of data, however, it is impossible to begin the analysis or engage in an informed debate over whether our energy markets are functioning properly or are in the midst of a speculative bubble.

 

That was two years back. And much water has flown in the Mississippi since then.

 

The link to the spot markets

 

Now to answer the second leg of the question: how speculators are able to translate the future prices into spot prices.

 

The answer to this question is fairly simple. After all, oil price is highly inelastic — i.e. even a substantial increase in price does not alter the consumption pattern. No wonder, a mere 3-4 per cent annual global growth has translated into more than a 40 per cent annual increase in prices for the past three or four years.

 

But there is more to it. One may note that the world supply and demand is evenly matched at about 85 million barrels every day. Only if supplies exceed demand by a substantial margin can any downward pressure on oil prices be created. In contrast, if someone with deep pockets picks up even a small quantity of oil, it dramatically alters the delicate global demand-supply gap, creating enormous upward pressure on prices.

 

What is interesting to note is that the US strategic oil reserves were at approximately 350 million barrels for a decade till 2006. However, for the past year and a half these reserves have doubled to more than 700 million barrels. Naturally, this build-up of strategic oil reserves by the US (of 350 million barrels) is adding enormous pressure on the oil demand and consequently its prices.

 

Do the oil speculators know of this reserves build-up by the US and are indulging in rampant speculation? Are they acting in tandem with the US government? Worse still, are they bordering on recklessness knowing fully well that if the oil prices fall the US government will be forced to a ‘Bears Stearns’ on them and bail them out? One is not sure.

 

But who foots bill at such high prices? At an average price of even $100 per barrel, the entire cost for the purchase of this additional 350 million barrels by the US works out to a mere $35 billion. Needless to emphasise, this can be funded by the US by allowing it currency printing presses to work overtime. After all, it has a currency that is acceptable globally and people worldwide are willing to exchange it for precious oil.

 

No wonder Goldman Sachs predicts that oil will touch $200 to a barrel shortly, knowing fully well that the US government will back its prediction.

 

And, in the past three years alone the world has paid an estimated additional $3 trillion for its oil purchases. Oil speculators (and not oil producers) are the biggest beneficiaries of this price increase.

 

In the process, the US has been able to keep the value of the US dollar afloat — perhaps at an extra cost of a mere $35 billion to its exchequer!

 

The global crude oil price rise is complex, sinister and beyond innocent economic theories of demand and supply. It is speculation, geopolitics and much more. Obviously, there is a symbiotic link between the US, the US dollar and the oil prices. And unless this truth is understood and the link broken, oil prices cannot be controlled.

 

Other articles by the author:

 

Is the US economy heading for a collapse?

Derivatives: The time bomb in our financial system

Pay panel, an attempt to destabilise India

Anything multiplied by zero is zero indeed!

The author is a Chennai-based chartered accountant. He can be contacted at mrv1000@rediffmail.com

 

 

 

Tags Categories: Politics Posted By: Nandhi Varman
Last Edit: 11 Jun 2008 @ 07 39 PM

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 07 Jun 2008 @ 8:07 AM 

KALAIGNAR’s SAMATHUVAPURAM

versus

AUROVILLE TOWN OF IN-EQUALITY

 

The sovereignty of India and the sanctity of the Constitution of India must be borne in mind before the Ministry of Human Resources continues to support an international city project called Auroville within Indian Territory. To generate employment various Special Economic Zones are being set up, and whatever may be the initial hiccups, ultimately it provides employment to our people and helps them come out of poverty. Any government on Earth will naturally moot out and support projects that will better the lives of the people. But the international city being set up in Tamil soil marginalizes Tamil people in their own soil, tries to make them second class citizens in their own homeland, while select few harvest profits without paying minimum wages or taxes, and under the guise of being a trust, organization, association, under the umbrella provided by Auroville Foundation. Here the loophole in the Act needs to be plugged and lacunae removed will be the main thrust of our memorandum here.It is high time the Ministry of Human Resources Development takes stock of the situation and evaluates the purposes and results achieved in order to affect corrective steps for proper functioning of Auroville Foundation.

 

The Auroville, international city on Indian soil aimed at bringing 50,000 people into its fold, and here it must be understood that the people must be of foreign nationality or racial superiority and not the backwards and downtrodden living in villages around Auroville centuries, neither the fishermen living in coast from time immemorial. This itself is Social Injustice. Instead of integrating all people living in the area, where international city comes, to use philosophical phrases like an ideal society needs ideal men, as claimed by an Aurovillian in BBC interview, is aimed at keeping Tamils as outcasts in their own soil.

 

The greatest achievement of Dr.Kalaignar M.Karunanithi is the introduction of Samathuvapuram, a Town of Equality, integrating all castes and bringing social harmony. Many such Samathuvapurams have come up in Tamilnadu. It is a goal rest of India should follow suit to bridge the gap between caste divide, a curse in our society. The Auroville Foundation, must use the funds it gets from various donors and agencies, to make AUROVILLE as Samathuvapuram, and also canalize funds to develop all Samathuvapurams of Tamilnadu.

  

The Residents Assembly of Auroville has only 1700 people, that too half of it being foreigners .It is strange that even after 40 years the Auroville could not become a full fledged town of 50,000 people, but remains with only 1700. This means it has failed to achieve its goal. Then the need arises for the Ministry of Human Resources Development to bring in remedial measures. We have an international town. We have it under your Ministry’s control. When it slips into the downward slide of failing in its goal, your ministry has all rights to intervene. We, Dravida Peravai, urge you to bring suitable amendments to the Auroville Foundation Act, to make it a town of internationally displaced Tamil people, who have been driven as refugees. If the word Tamil refugees may sound harsh to the ears of the bureaucracy, it can be a town where Tamil refugees put up in various camps, Burma Refugees, and Tibetan refugees are rehabilitated, thereby the Refugees will be rehabilitated in Auroville.

 

Dr.Kirit Joshi Chairman of Governing Board with an Auroville delegation met Dr.Murli Manohar Joshi Minister for Hinduvta Development and Dr.Jagmohan Minister for Urban Development and presented the Master Plan ratified by the Governing Board in 18 &19 of December 1999. Earlier Residents Assembly had approved. (Source: Auroville Land Fund News Letter Number 12 April-May 2000). Our Question: Assembly in lexicon may mean different, here it seems Auro-villians consider it a city-state like Roman city-state. The Resident Assembly represents only 1700 people, but leaves 45,000 people living in 14 villages. Giving government land on 99 years lease to the 1700 people dominant group while not elevating the economic status of 45,000 Tamil people by assigning lease of government lands to them in their traditional soil, amounts to be like fostering re-colonialization. The Honourable Members of Parliament while the Auroville Foundation Act was introduced as bill in Parliament had suggested that the Member of Parliament in whose constituency Auroville comes up must be made a member in the Governing Board. Dravida Peravai urges not only The Tindivanam, Puducherry Members of Parliament but the Members of The Legislative Assemblies under whose jurisdiction Auroville comes up also be inducted into the Governing Board. The Local Body Chiefs too must be made members to ensure Indian sovereignty is safeguarded, to smell the foul play if a Vatican type city state seems to be the goal towards which Foundation is drifting driven by vested interests, making government appointed Secretaries mute spectator, while few Financial Officers defying the periodical mandatory transfer policy to ensure clean administration, stick to their chairs and powers, inviting Dravida Peravai to demand a CBI enquiry into the disproportionate assets accumulated by officials continuing there for decades.

 

Unfortunately like absentee landlords, though they may be men of eminence, few people adore the Governing Board. The Ex-Maharaja of Kashmir, Mr.Hari Singh had left Dr.Karan Singh to shed midnight oil to resolve the Kashmir issue, where thousands of Indian soldiers have shed their blood since Indo-Pakistan war broke out. Instead of devoting whole time and effort to solve Kashmir problem, Dr.Karan Singh is wasting his precious time to adore the Chairman’s Chair of Auroville Governing Board. The Indian Constitution has a special clause Article 370 for Kashmir, which protects Kashmiris. In Kashmir no Indian citizen can buy or own land, but the Kashmiri Leader Dr.Karan Singh comes to Tamil soil to preach “Divine Anarchy” advocated by French lady and occultist Mirra Alfasa, and uses his political clout to get government lands leased to Foundation, which will in return pass on to private trusts of foreigners. This is outrageous. If this practice of Tamil lands assigned to foreigners does not stop, we will demand that under Article 370, Tamilnadu too should be brought under.

 

A global campaign to raise $ 1 million or 5 crores by Mother’s birthday on 21 st Febraury 2004. (From 1 st January to November 2003 $ 550.000 has been donated) This is twice the amount Land Fund usually receives in a year. An excellent boost for Land Fund, and the equivalent of about 65 acres of precious land for Auroville. (Source: Land Fund News Letter number 31 November- December 2003)  Question: If $ 550,000 dollars can buy 65 acres what price is for 1 acre, and whether that price goes to the actual owner? Are they giving proper price to the land, or are 192 units in Auroville paying proper wages to Tamil workers. The Leftists have left out Auroville from their watchful eyes. Nowhere in India are wages given, according to age, the study by Pondicherry University Sociology Department will reveal.

 

To a question what political organization do you want for Auroville?  Mirra Alfasa replies: An amusing definition occurs to me: A divine anarchy. But the world will not understand. Men must be conscious of their psychic being and organize themselves spontaneously, without fixed rules and laws- that is the ideal. (Source: Draft II of a working paper on an international organization for Auroville September 2001).

 

Mirra Alfasa, as you said world in your time may not understand the DIVINE ANARCHY let loose by you, but in present day even a LKG child will understand that you are against the laws of the land and want to create a lawless society.

 

A freedom fighter Aurobindo Ghosh who fled from Bengal landed in Pondicherrry as refugee. He came under the influence of Paul Richard, a philosopher whose works he ventured to translate from French. Mahakavi Bharathiar introduced to Aurobindo Ghosh the literature of Tamil Siddhar’s especially Thirumoolar who wrote Thirumanthiram. As a blend of these influences with the mastery Aurobindo had over English he could write many books. Because he had been elevated to God status, no one dares to research the origins of his philosophy and the sources of his inspiration. But the learned judges of the Supreme Court had in their verdict admitted him to be only a philosopher and nothing more. Yet his followers propagate the idea that he is an avatar, which is an affront on the decision of the Supreme Court bench. In a bench judgment in the S.P.Mittal versus Union of India (AIR 1983) case Chief Justice V.Chandrachud, Justices P.N.Bhagawathy, V.Balakrishna Erady and R.B.Mishra with the exception of dissenting O.Chinnappa Reddy have made it clear that Aurobindo is only a Poet and Philosopher.

 

The Encyclopedia Britannica (1978 edition) describes Aurobindo Ghosh as “ seer, poet and Indian nationalist who originated the philosophy of cosmic salvation through spiritual evolution, a divine experience that will appear through the development of Gnostic mean to usher in a transcendental spiritual age in which man and the Universe are destined to become divine. Aurobindo’s theory of cosmic salvation, the paths to Union with Brahman is two way streets or channels. Enlightenment comes to man from above while the spiritual mind (super-mind) of man strives through yogic illumination to reach upward from below. When these two forces blend in an individual a Gnostic man is created. This yogic illumination transcends both reason and intuition and eventually leads to freeing of the individual from the bonds of individuality and by extension all mankind will eventually achieve mukthi (liberation) Thus Aurobindo created a dialectic mode of salvation not only for the individual but also for all mankind”. Says the definition.

 

Karl Marx and dialectical materialism stands proven in the test of times whereas those who tried to rope the word dialectical for salvation stands proven to be false prophets.

 

Under the head History of Hinduism, Encyclopedia Britannica says, “Another modern teacher whose doctrines have had some influence outside India was Aurobindo, who began a career as a revolutionary. He with drew from politics, however, and settled in Pondicherry, then a French possession. There he established an ashrama (a retreat) and achieved high reputation as a sage. His followers looked on him as first reincarnate manifestation of super beings whose evolution he prophesized and apparently he did not discourage this belief. After his death, the leadership of the Ashram was taken over by The Mother Madame Mira Richard, a Frenchwoman who had been one of his leading disciples” Well it is the Mira Richard’s husband Paul Richard, whose works Aurobindo translated were one of the reasons for his philosophy to blossom. Let impartial researchers dig deep into the writings of both to arrive at a conclusion who influenced whom?

 

Aurobindo Ghosh, the reincarnation of Lord Krishna according to his followers could not prove his philosophy while he lived. He could use the mastery of the language to mesmerize people but he failed to become a Super human being. He passed away like other mortals. While he passed away rumours were spread that there will be a resurrection, a feeble attempt to equalize with Christian beliefs. That too failed, and he is laid to rest at Ashram. His philosophy also is laid to rest there. Yet even after God-man fails in his claims the spiritual business empires built by their followers are keen to keep alive a falsity and a failed promise.

 

After the original prophet failed, then French woman Mira Richard became the Mother to lead the Ashram. Did she succeed? She succeeded Aurobindo as Spiritual Master but did she succeed in proving the philosophy? Let us think this aspect here. The collected words of Mira Richard had been published and recorded in audiocassettes. Mother’s Agenda as the book calls itself claims that “This tremendous document 6000 pages and in the 13 volumes is the day to day account over twenty two years of Mothers exploration into the body consciousness and of her discovery of a cellular mind capable of restructuring the nature of the body and the laws of the species as drastically as one day the first stammering of a thinking mind transformed the nature of the ape. It is a veritable document of experimental evolution. A revolution in consciousness that alters the laws of the species. And it is the question of our times, for whatever appearances, we are not at the end of a civilization but at the end of an evolutionary cycle. Are we going to find the passage to next species…. or perish? As scrupulously as a scientist in his laboratory, Mother goes back to the origins of matters formation to the primordial code, and there by chance stumbles upon the very power that changes death and upon a new energy which curiously parallels the most recent theories on the subatomic nature of matter. The key to matter contains the key to death and the key to next species”

 

The spiritual lady prophet who found the key to death is dead. Perhaps she had lost that key. And Aurobindo Ashram all these years had been searching for that key, and none found. Mira Richard did not succeed in altering the laws of species. And yet why she should be treated as a successful scientist or spiritualist, and to commemorate her memory, why an International City should come up in Indian soil. Has any other country allowed such projects that erode their sovereignty? We who are used to colonial rule still dream that white men have descended from heaven, even after Spencer Wells proved in his book Genetic Odyssey that all men gave common roots and are equals furthering the cause of social justice movement.

 

Dravida Peravai urges to amend the Auroville Foundation Act, giving backwards and downtrodden place of equal importance, curtailing the powers of foreigners, economically empowering all Tamil villagers and all refugees in this land to live in harmony in a city that should practice brotherhood instead of carrying dead wood of a failed philosopher’s dream.

 

                                                                                                                                                           

N.Nandhivarman                                                                                                      

 

Tags Categories: Politics Posted By: Nandhi Varman
Last Edit: 01 Jan 1970 @ 05 30 AM

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