“The first scam of free India”
On the New York Times‘ India Ink blog, I write about the Haridas Mundhra scandal, “the first scam of free India”:
Mr. Chagla worked remarkably fast. His report, submitted in less than a month, is still a marvel of transparent investigation and concise analysis; his questioning must have been just as robust. Mr. Krishnamachari dithered and dissembled during his interview; later, as Taya Zinkin revealed in her book “Reporting India,” he would tell Mr. Patel: “I had not expected that the Judge would ask so many questions and I got flustered.” Mr. Chagla pored over the letters of Mr. Raman, the RBI research officer who had industriously been studying Mr. Mundhra and who had recommended an inquiry even in September 1957. The last of Mr. Raman’s letters, Mr. Krishnamachari observed, did not “make good reading.”
The hearings of the Chagla commission were conducted in public; such huge crowds attended that loudspeakers had to be set up for people who remained outside the court room, in the dilute sunlight of Delhi’s winter. In several of these depositions, as Ms. Dalal wrote in her A.D. Shroff biography, Mr. Chagla learned about how obviously rotten Mr. Mundhra’s companies were. Bhagwandas Govardhandas, a member of the LIC investment committee, told Mr. Chagla that he would not have touched Mr. Mundhra “with a pair of tongs.” Mr. Shroff said about Mr. Mundhra that he had “an infinite capacity for not telling the truth. From my long experience I have learnt that when a man is in difficulties, if he comes to you, he will never disclose the truth about himself.”
More here.
There is now also a Long View archive on India Ink, which is here.



