Monday, December 6, 2010

N.K.Singh in Radia Tapes

Arun Shourie, former Union Minister & former editor has confirmed that the voice in the Radia tapes that is heard admittedly lobbying for Mukesh Ambani is that of his college friend N K Singh. 
One hears a Member of Parliament, N.K. Singh, who is meant to represent the people and the state who voted for him, lobbying for the company of Mukesh Ambani. N K Singh is a Rajya Sabha MP from Bihar on a Janata Dal (United) – JD(U) ticket.  In one recording, N K Singh tells Ms Radia of the firefighting he is doing on behalf of Ambani to ensure a tax concession the finance minister had announced in the 2009 budget for gas production is made applicable retrospectively. Radia says she has killed news stories about the Rs.81,000 crore super profit Reliance Industries Ltd. (RIL) would make were that to happen but N K Singh is more concerned about what happens in Parliament during the debate on the Finance Bill. His fear is that if Opposition MPs make a noise about a largesse being given to one company, the finance minister would be on the defensive and the prospect of extending the concession retrospectively would not even arise. 
In one of the Rdia tapes, N K Singh tells Ms Radia of the firefighting he is doing on behalf of Ambani to ensure a tax concession the finance minister had announced in the 2009 budget for gas production is made applicable retrospectively. Radia says she has killed news stories about the Rs.81,000 crore super profit Reliance Industries Ltd. (RIL) would make were that to happen but N K Singh is more concerned about what happens in Parliament during the debate on the Finance Bill. His fear is that if Opposition MPs make a noise about a largesse being given to one company, the finance minister would be on the defensive and the prospect of extending the concession retrospectively would not even arise. 
N K Singh accuses BJP leader Arun Shourie of being on Anil Ambani's side and reveals how he has managed to get Shourie replaced as the BJP's lead speaker by Venkaiah Naidu. 

Industrialist Anil Ambani (L) and ex - bureaucrat N K Singh during the wedding of latter's daughter Meenakshi with Gautam Pathania, in New Delhi on May 12, 2009.
How well does Mukesh know Venkaiah, asks N K  Singh. Radia replies that a senior RIL executive, P.M.S. Prasad, knows Naidu well. “Then I am going to get him flown in today to talk to Venkaiah,” N K  Singh says, “because if he is the first speaker, and he already takes a party line, then it will be very difficult for Shourie in his second intervention, to take a different line. Then we have to orchestrate who will speak, you know, this is the immediate problem right now. Because, frankly, if this doesn't go through, this tax thing, then it's a major initiative taken that then fails to materialise.”
The BJP leader's speech in Parliament two days later reads: “The Bay of Bengal has become the new North Sea of India. Government departments should not be seen quarrelling whether mineral oil is a natural gas or not. Whatever concessions [are] needed for infrastructure, exploration ... are connected with the energy security of the country.” This was a veiled reference to the Petroleum Ministry's letter to the Finance Ministry asking for natural gas to be given the same tax concessions available to oil retrospectively and not just from the New Exploration Licensing Round (NELP) VIII round which would exclude RIL's KG basin output. A request the revenue secretary had turned down.  
Shourie was speaking to Karan Thapar on his program 'Devil's Advocate'. Excerpts given below: 
Karan Thapar: Let's start with the Nira Radia tapes, you yourself are a subject of discussion. The voice speaking to Nira Radia reveals that he has arranged for you to be replaced by Venkaiah Naidu as the lead speaker from the BJP side in the Rajya Sabha on the 2009 Budget. Let me first ask you did this actually happen?
Arun Shourie: Yes, there is no doubt in that. I was asked to open the debate on the budget, I worked for one week to speak of the matter and at the last minute after I reached the house I was told that the previous night Mr Venkaiah Naidu had decided to speak suddenly. Therefore as he had been party president he will speak first. My turn would come after all the 13-14 speakers have spoken and then I would be the second speaker for the party.
Karan Thapar: Now the second thing that the tape suggests that if you would have been the lead speaker you might have taken a hard position on a proposal in the budget which was going to help Mukesh Ambani hugely. But by replacing you with Mr Venkaiah Naidu the person had ensured that the line taken by the BJP would be more accommodating and understanding?
Arun Shourie: Yes, it was certainly their objective, I mean its clear from the tapes that was the objective. They may have apprehended this because I had spoken about that particular proposal in an adverse way in a party meeting...I may or may not have spoken about this on the floor of the house.
Karan Thapar: But this was their fear?
Arun Shourie: This was their fear.
Karan Thapar: Now the voice speaking on the tape speaking to Nira Radia, who I have been referring to all along hasn't been identified. Have you recognised that voice?
Arun Shourie: No doubt everybody who listens to the tape and I hope that everyone listens to the tape will know that it is my good college friend NK Singh. What is the problem with that?
Karan Thapar: The gentleman who was secretary to the Mr Vajpayee at one point of time?
Arun Shourie: He was secretary to the Prime Minister, he was I am sure finance secretary at one stage, he was a member of the Planning Commission and my college friend.


N.K.Singh's voice has been referred to in the transcripts as “Unknown voice”. The text of the conversation is given below:
July 9,2009, 9.31.49 a.m
Unknown voice(UV): Hii Niira
Radia to Unknown voice: Hi, I just wanted to tell you that I still think that HT(Hindustan Times) is little compromised. We met up with both the Editors, Sanjoy Narayan and Sukumar(R.Sukumar, Editor of Mint newspaper, part of HT Group), Sukumar is OK, of Mint, (UV—ummm). But Sanjoy Narayan yesterday, Manoj(Modi, right hand man of Mukesh Ambani) was in town, you know Manoj Modi is here,(UV—haan) and the sense I got from the conversation and see the type of stories that they are still carrying, you know they are still carrying that the Government is not a respondent in this matter(Natural gas pricing issue in which the Ambani brothers are fighting each other), when the Government is clearly a respondent, because the other side(Anil Ambani’s) has circulated a part of our SLP(Special Leave Petition in supreme court) by crossing out the “Government is a respondent part” by inking it with white ink(UV—ahh, ohh), and showing it only as an intervener(UV–hmmm, hmmm) and the only paper which believes it is the Hindustan Times.
UV to Radia— I saw that, I saw that piece, of course it is slightly mixed up with the fact of Anil(Ambani) yesterday having met, all these(?) guys, so I think it is not very clear, I mean the story has been morphed as if to say that this is a) from the fact of court thing and mixed up with Anil’s meeting with these(?) guys
Radia to UV—– Correct, but that the thing that what they(Anil Ambani side) tried to do, was that they called everyone and tell that Government is not a intervener, sorry not a respondent—\
UV to Radia— no, what I mean is that Government is an intervener or not, I mean is only ah ah, person is the Government and b) the Court.
Radia to UV—- Correct,
UV to Radia— if the court decides that I am not entertaining you as an intervener, (Radia— yes), so that’s the end of the story. But the court, u know, impleads Government as an intervener, so be it. These are not matters a) whether Government wants to be an intervener or not is Government’s choice, and second, whether it is entertained or not is the Court’s decision, right?
Radia to UV—- point I am making is that everybody else took no notice of it, but except only Hindustan Times.
UV to Radia— achha main, I am meeting Shobhna(Bhartia, Owner of Hindustan Times Group), in an hour’s time and I, I will speak to her about this, ah?
Radia to UV— yeah, we were in this discussion with them yesterday, with Manoj Modi( Right hand man of Mukesh Ambani) and we took them through everything and we are hoping that they understood everything, but I thought the body language was a bit, you know you can feel that they are a bit, I mean, when we asked what do you think we should have done, Manoj said that to them(Sanjoy Narayan and R.Sukumar), and their reaction was that the two brothers should merge again.
UV to Radia—the two brothers?
Radia to UV— should merge(ha ha)
UV to Radia—-oh, not bad yah,(Radia—ha ha ha ha), very good actually, very good philanthropic advice. (Radia—haaaaa haaaa haaaa haaa, but they–), now Niira I am in another fire fighting(Radia—oh), so I have slightly shut my mind from this(Radia—ok), because I am in the immediate issue of what is going to happen to Pranab Mukherjee’s (Finance Minister of India), announcement on the tax benefit( full deduction under Income Tax Act for business of laying and operating cross country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle) to them(Mukesh Ambani group) on the gas.(Radia—ok) Given that he has withdrawn it(Radia—correct) in a way. Because he has made it applicable only for NLEP VIII(actually NELP—National Exploration and Licensing policy—VIII is eighth round). So this Revenue Secretary is doing some degree of championship there. Ahhh, So now I am working out a strategy how to get this back. One of the complications in this is that, between you and me, Mr.Arun Shourie(the BJP member in Rajya Sabha) has gone and got himself completely on the other side(Anil Ambani side). (Radia—yes). Because he has been promised a Rajya Sabha(ticket) by, Tony(Jesudasan, Anil Ambani’s top media manager and lobbyist) and company(Arun Shourie was to retire shortly as member of Rajya Sabha at that point of time).
And yesterday I just checked, Samajawadi(Party) has a 50 percent surplus votes in UP, and in combine with 50 percent surplus votes of BJP can give the BJP(Radia—ummm, ummm) and extra ticket(Seat), and why should the BJP deny itself getting an additional Rajya Sabha(seat) on somebody else’s strength. So that, that’s the promise given and therefore he was very very very critical of this whole gas(pricing) thing and said in the BJP Parliamentary Board meeting day before yesterday( Radia—haan haan),. Now whatever he said in the meeting day before yesterday is one aspect(Radia— umm, umm), but what attitude BJP will take on this whole issue of the debate on the Finance Bill (he meant Budget discussions probably) which is beginning from Monday, in both Houses of Parliament is of vital importance( Radia—umm, ummm). Because if large number of opposition MPs, and Samajawadi(party) will definitely join, begin to say that Pranab Mukherjee has given a bad largesse to benefit only one company(Reliance Group of Mukesh Ambani), then a) Pranab Mukherjee is on the defensive and therefore the question of extending it (Tax concession to Mukesh Ambani’s Reliance for Gas exploration) retrospectively, goes out of the window.(Radia—ummm).
So this whole managing that stuff in a way, and also I think, you know, that Arun is speaking, Shourie is speaking as a listed speaker in the Rajya Sabha for the BJP. Now but fortunately what we have managed to do is make him Arun(Shourie) the second speaker and made Venkaiah (Naidu, another BJP member), the first.(see ET story on this issue here,http://m.economictimes.com/PDAET/articleshow/4764839.cms) So I don’t know what is Mukesh’s relations with Venkaiah—
Radia to UV— I thought (inaudible)—
UV to Radia— pardon me?
Radia to UV— I said , I thought (inaudible) saab has good relations with Venkaiah.
UV to Radia— He had?
Radia to UV— I thought so.
UV to Radia— Then I am going to get him flown in today(from Bombay to delhi, presumably), to talk to Venkaiah, because if he is the first speaker, and he already takes a party line, then it will be very difficult for Shourie in his second intervention(as second speaker of the party—BJP), to take a different line. (Radia—ummmm), Then we have to orchestrate who will speak,(Radia—ummm) you know, this is the immediate problem right now. Because, frankly, if this doesn’t go through, this tax thing, then its major initiative taking that fails to materialize. Because he has, Anil(Ambani) has also organized this. A) he tried to controversalise(sic) this and b) he made the department make it prospective and not retrospective( Radia—ummm).Whereas really, all the roadshows that was done on the National Exploration policy(NELP), was on a condition and explicit understanding of a seven year tax break. So overlooking all the understanding and ignoring everything and spreading this disinformation(by Anil Ambani), that seems to have gathered momentum in the last 64 hours, and it’s the hottest issue right now. Let me attack this, and I take note of what you tell me about HT(Hindustan Times), aah.
Radia to UV—- No, no problem, I just, I just, I just wanted to tell you, because all the queries were coming in and I was feeling pretty bad(UV—yeah, yeah), and they kept saying that we are going to earn Rs.81,000 crores benefit out of it(tax concession) and it is being, you know, given to us retrospectively, you know, and those sort of queries was being put out in the media.(UV—I know—), we killed(news appearing about it) most of them. None of them has appeared (UV—yeah, yeah), but thinking whether—
UV to Radia—- No I don’t want this to come out in Parliament. Because that’s the most immediate thing that influences the Government mind. Because if those guys, like PM(Prime Minister) and FM(Finance Minister) are sitting there, and if several MPs begin to talk all this— that influences the minds in the immediate sense of the term. (Radia—- umm, ummmm) not everybody may read whatever is written in so most of papers and journals. Whatever is spoken there (inside the House) is directly to heard by these guys.
Radia to UV— Correct, correct and the essewhat—–
UV to Radia— I think having done what we (Anil Ambani) did, he is unable to undo the damage which has been given in the interpretation. So the request made by the Petroleum ministry for them to reconsider will be routinely turned down by the Revenue Secretary. You know, in effect if that happens and the Revenue Secretary benefits (not quite audible) out of this, because that means its starts from the A ground , and that means we are not there. Because all road shows that were done, this was one of the conditions(Tax break) on which the investments came in. (Radia—correct). Somebody will have to point out that this was, this was an assurance given (Radia—umm), in promoting the investment basket. And this opportunity, you cannot retrospectively, curtail an opportunity. Instead of giving a largesse, this is only sticking to a commitment given earlier. This is the point of view which has to be——(gets disconnected).

In the interview with Rediff.com,  Arun Shourie tells Sheela Bhatt about one of the issues revealed in one of the Radia tapes is that you were not given a chance to speak on a Budget-related issue in Parliament. In her conversation with N K Singh, a former bureaucrat and now a Janata Dal-United MP, she says she didn't want you to be given a chance to speak by the BJP (Bharatiya Janata Party).
Did you discover the alleged pressure on your party from the tapes or did you know about it before?
Do you think corporate people can influence the BJP?
Why don't you listen to the tape? I was astonished when I reached Parliament that day. But what can you do? I didn't know that such pressure had worked.
I don't blame the corporates as much as the political process and then these lies are being put out (in defence by the BJP).
And my friend N K Singh says this was a social chat. Arre, look at your tone. You are talking for nine minutes to Radia. Out of that for five minutes he speaks on how he was successful in subverting the BJP's speakers in the debate on the Budget.
Singh who is accused of lobbying for tax breaks for the gas sector to help industrialist Mukesh Ambani says, “On the substance of the (tax) concession, as revenue secretary when my views would have mattered, I rejected the proposed tax breaks being extended to gas".
Shourie says,  This concession (to Reliance's gas project) was made by (Union Finance Minister) Pranab Mukherjee. A revenue secretary, who has written some clarification, overruled this concession. (N K Singh says on the tape) 'We have to get it restored, otherwise we are nowhere. The initiative they have taken will go nowhere.' Therefore, Arun Shourie who has taken the difficult position in the BJP's party meeting, has to be managed, he says. He then says, we have got Venkaiah Naidu to speak first. Somebody has analysed Venkaiah Naidu's speech, in which the sentence is there (supporting Reliance) that all these tax concessions must be continued and given for the gas infrastructure. Where is the doubt.

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