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Crony Capitalism in Tamil Nadu

Since 1967 Tamil Nadu has been ruled by successive governments led by Dravidian parties. These two parties, the DMK and the AIADMK have presided over administrations which have been corrupt from top to bottom. Corruption begins at the level of the police constable, the Village Administrative Officer, the Panchayat members, the Tahsildar and goes up to the very top. The Black money generated by such corruption is used to fund corrupt practices during elections and generate huge wealth for politicians who may be just Corporation ward councillors or even Chief Ministers or Union Telecom Ministers.

There are many examples of such blatant corruption. Tamil Nadu state has the dubious distinction of having a Chief Minister from the AIADMK who is facing serious charges in the Disproportionate Assets Case which has been made to drag on for many years. Tamil Nadu also has the other distinction of having produced a Union Minister from the DMK who was in jail for more than a year for his involvement in the 2G scam which was said to have caused the Government a presumptive loss of more than 1.76 lakh crores.

In this report we will only consider two examples of the blatant misuse of power and the tight links which exist between some businessmen, some politicians and some pliant officers. Read More


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