DAILY FROM: AHMEDABAD, CHANDIGARH, DELHI, JAIPUR, KOLKATA, LUCKNOW, MUMBAI, NAGPUR, PUNE, VADODARA JOURNALISM OF COURAGE WEDNESDAY, NOVEMBER 28, 2018, AHMEDABAD, LATE CITY, 20 PAGES `4.00, WWW.INDIANEXPRESS.COM SINCE 1932 AN ICIJ-EXPRESS INVESTIGATION NC, PDP PRAISE GOVERNOR In US, ortho major forced to admit it was corrupting doctors, hospitals in India What Centre wanted in J&K: Malik lets it slip KAUNAIN SHERIFF M NEW DELHI, NOVEMBER 27 GUJARAT UNA DALIT VICTIMS SEEK MERCY KILLING, WRITE TO PRESIDENT, PAGE 5 EX-BJP MINISTER JOINS CONGRESS JADEJA RECOVERING AFTER SURGERY PAGE 3 INDUCEMENTS TO doctors, dubious deals with hospitals. If these are the hallmarks ofthe big unregulated medical bazaar in India, a rare case involving a global major has put a figure to it. In a filing two months ago, the top financial regulator in the USA, the Securities and Exchange Commission (SEC), ordered the world’s leading manufacturer of orthopaedic implant devices, Stryker, to pay $7.8 million (over Rs 55 crore) in settlement for violating its corruption norms in India, China and Kuwait, documents accessed by The Indian Express reveal. The settlement, recorded by the SEC on September 28, came after the Commission’s “account- US SEC filing on Sept 28: ‘Documentation appeared falsifed’ ing and audit enforcement” proceedings noted a number of “violations” by the company’s Indian subsidiary and its dealers. These “violations” include questionable payments to doctors for “consulting fees, travel, and other benefits” and “inflated invoices” issued to “mostly large, corporate hospitals”. And that’s not all. In 2012, the anti-monopoly regulator, Competition Commission ofIndia (CCI), fined an authorised distributor ofStryker India and two other firms Rs 3 crore for allegedly rigging bids, manipulating tenders and forming a cartel to sell equipment to the All India Institute of Medical Sciences (AIIMS) and Safdarjung Hospital, two of the largest government hospitals. In its scrutiny ofStryker’s India operations, including the findings of internal audits between 2010 and 2015, the US SEC concluded: ON US BLACKLIST, IN INDIA ● THEY ARE IN THE GREY ZONE P 9 “Payments intended to benefit HCPs (Health Care Providers) also lacked sufficient documentation, such as consulting fees paid to doctors without adequate explanation ofthe doctors’ consulting services or hours billed, and payments for HCP travel with documentation that appeared falsified... “Additionally, the forensic review found missing or inaccurate documentation for numerous other transactions flagged as TOMORROW: IMPLANTS WITHOUT CLINICAL TRIALS high-risk, including expenses related to consulting fees, travel, and other benefits to health-care professionals in India.” The US regulator’s severe indictment of Stryker’s India operations is one of the most startling findings to emerge from the Implant Files investigation by The Indian Express and the International Consortium of Investigative Journalists (ICIJ) on the medical bazaar, where pharma majors hardsell their products without any regulation via a dubious nexus with hospitals and doctors. Stryker India has four offices in the country -- Delhi NCR, Mumbai, Chennai and Kolkata - and an annual turnover of Rs 300 crore in FY 2017-18, mainly from selling hip and knee implants, and medical devices for CONTINUED ON PAGE 2 Kartarpur opens today: nip in the air, hope on the streets EXPRESSIN LAHORE SHUBHAJIT ROY NOVEMBER 27 IN LAHORE, there’s a nip in the air. It’s the evening before Prime Minister Imran Khan is scheduled to lay the foundation stone in Kartarpur for the corridor linking Gurdwara Darbar Sahib — the final resting place of Guru Nanak — to Dera Baba Nanak shrine in Gurdaspur. And the mood on the ground, around 120 km from the venue, is a heady combination of high hopes and great expectations. More so, after Foreign Office spokesperson Mohammad Faisal declared in Islamabad that Pakistan will invite Prime Minister Narendra Modi for the next SAARC summit in the country. At the plush California Pizza outlet, on the road to the famous Liberty market in the heart of Lahore, four young women — two lecturers, a doctor and a PhD student — are convinced that Khan’s move is “wise” and could change how people view Pakistan. “This initiative is a positive step, and we hope India will reciprocate,” said Maria Farooq, a lecturer in Islamic Studies, as her friends nodded in agreement. It’s not just people on the street. “We believe that Pakistan’s Kartarpur spirit, if reciprocated adequately, can be a harbinger of change in this most challenging relationship in South Asia,” Foreign Office spokesperson Faisal told The Indian Express over phone. Pakistan had invited External Affairs Minister Sushma Swaraj to attend Wednesday’s event. But with prior commitments on her table, Union Ministers MADHYA PRADESH, MIZORAM VOTE TODAY Election officials leave for their polling stations ahead of the state assembly elections, in Jabalpur on Tuesday. PTI CONTINUED ON PAGE 2 THE IDEAS PAGE NSEL payment fraud: SFIO tells govt to wind up 148 brokerages KHUSHBOO NARAYAN MUMBAI, NOVEMBER 27 TODAY, INSTITUTIONS SPEAK FOR THOSE WHO RULE Navjot Singh Sidhu at Wagha on Tuesday. AP BY KAPIL SIBAL PAGE 11 THE SERIOUS Fraud Investigation Office (SFIO) has recommended to the government to initiate the process of winding up 148 brokerages in India for conducting business in a “fraudulent manner” while dealing with investors who were defrauded in the Rs 5,600-crore payment scam at the National Spot Exchange Ltd (NSEL). The SFIO recommendation follows an investigation into the NSEL payment fraud that came to light on July 31, 2013. The Ministry of Corporate Affairs (MCA) is considering the recommendation of the SFIO on brokerages and is expected to take a decision soon on the winding-up SHELTER HOME CASES BUSINESS AS USUAL BY UNNY CONTINUED ON PAGE 2 WORLD Bihar govt ‘soft, selective’ in filing FIRs: SC EXPRESS NEWS SERVICE NEW DELHI, NOVEMBER 27 THE SUPREMECourt on Tuesday lashed out at the Bihar government for going “soft” on charges of abuse of children at 14 shelter homes in the state and indicated that it may transfer the probe to the CBI. PAGE 1 ANCHOR process, sources told The Indian Express. NSEL’s payment troubles started after it was ordered by regulator Forward Markets Commission (FMC) in July 2013 to suspend spot trade in most of its contracts due to suspected trading violations. The exchange was not able to settle outstanding trades. A bench of Justices Madan B Lokur, Deepak Gupta and S Abdul Nazeer also observed that the state was “very selective” in registering FIRs against the perpetrators, and asked the Bihar government whether these children are not citizens of India. “Counsel for the petitioner has shown us a chart of the allegations that have been made in respect of shelter homes and the manner in which those allegations have been dealt with by the state police. On going through the chart, as well as hearing the counsel for the State of Bihar, we are of the view that the state police is not doing its job as expected,” the bench noted when told that the police had invoked only less serious charges in FIRs registered in these cases. Giving vent to its anguish, the bench observed, “Only God can save (children)”. Justice Gupta said, “Every time I read this file, I am hit by the tragedy of the case.” The court was hearing a PIL by Patna resident Nivedita Jha on the alleged abuse of girls at a INSIGHT LANDS ON MARS PAGE 13 CONTINUED ON PAGE 2 ‘Had I looked to Delhi, would have had to install Lone... I would have gone down in history as a dishonest man’ ARUN SHARMA, NAVEED IQBAL & ADIL AKHZER JAMMU, SRINAGAR, NOVEMBER 27 FUELLING THE debate over his decision to dissolve the Jammu and Kashmir Assembly and ignoring claims to power, Governor Satya Pal Malik has said had he looked to Delhi, he would have had to install a government led by Sajad Lone, and history would have remembered him as a “dishonest man”. Lone heads the People’s Conference and has the backing of the BJP. On November 21, in separate letters staking claim to form the government, PDP’s Mehbooba Mufti cited support of the Congress and National Conference, while Lone said he had the support of the BJP and other MLAs. Within hours, Malik dissolved the Assembly. Justifying his decision — the J&K Assembly had been in suspended animation after Governor’s Rule was imposed in June — Malik told a gathering at the ITM University in Gwalior last Saturday: “Aur phir ek bar clear kar doon ki Delhi ki taraf dekhta to Lone ki sarkar mujhko banani padti. Aur mein itihas mein ek beiman aadmi ke taur pe jata. Lihaza mainey mamle ko hi khatam kar diya. Jo gaali dengey dengey, lekin mein convinced hoon ki mainey theek kaam kiya.’’ (And let me make it clear once again that had I looked towards Delhi, then I would have had to install Lone’s government ‘I did the right thing’ EXPLAINED US financial regulator asks Stryker to pay $7.8 million in settlement: dodgy records, rigging bids E He comes clean, but ● fuels debate GOVERNOR SATYA Pal Malik, who triggered a debate by dissolving the J&K Assembly instead of entertaining claims to power by the PDPCongress-NC alliance and the Sajad Lone-BJP bloc, has raised his stock by saying he did not look to Delhi. He is now being praised by the same leaders who castigated him. But his remarks also strengthen the suspicion in the Valley that Delhi is out to meddle in the state’s politics. and my name would have gone down in history as a dishonest man. So I ended the matter once and for all. Those who abuse me will continue to do so, but I am CONTINUED ON PAGE 2 Ayodhya: Indresh of RSS slams CJI-bench, claims Govt ready with law EXPRESS NEWS SERVICE CHANDIGARH, NOVEMBER 27 CLAIMING THAT the Centre plans to bring a law on the Ram Janmabhoomi-Babri Masjid dispute but has been silent in view of the Model Code of Conduct for the ongoing Assembly elections, RSS leader Indresh Kumar Tuesday attacked the Supreme Court’s “three-judge bench... known to the public” for “delaying” a decision on the Ayodhya title suit. He said if someone goes to the Supreme Court against the law the government plans to bring, “it is possible that the Chief Justice will issue a stay (Ho sakta hai aadesh laane ke khilaf koi sarfira Supreme Court jayega, toh aaj ka Chief Justice usey stay bhi kar sakta hai)”. Referring to the CJI-led bench’s decision to defer hearing on the Ayodhya matter to January, Indresh said: “I haven’t taken names because 125 crore Indians know their names... the three-judge bench... they delayed, they denied, they disrespected”. He then went on to say “will Indresh Kumar at Panjab University. Kamleshwar Singh the country be so handicapped” that it lets “two-three” judges “throttle its beliefs, democracy, Constitution and fundamental rights”. Speaking at a seminar titled ‘Janmabhoomi mein anyay kyun’, organised by the Joshi Foundation on the campus of the Panjab University, Indresh said: “Will you and I watch helplessly? Why, and for what? Jo aatankwad ko ardh raatri mein sun sakte hain, woh shanti ko apmaan aur uphas kar de (Should those who hear cases against terror at midnight insult and ridicule peace)... Even the English did not have the courage to perpetrate such atrocities on CONTINUED ON PAGE 2 Flaws In Gujarat Scheme To Reduce Girl Dropouts: Unicef-IIM-A Report ‘Vidya Lakshmi Yojana, under which girls who enroll in class I receive a bond of Rs 2,000, fails to define beneficiaries, has glaring discrepancies’ RITU SHARMA AHMEDABAD, NOVEMBER 27 VIDYA LAKSHMI YOJANA (VLY), a Gujarat government scheme to encourage girls to finish schooling by issuing Rs 2,000 bonds to them, not only suffers from operational flaws in defining and reaching out to beneficiaries, but also has glaring discrepancies in the conditional cash transfer (CCT) scheme that has been in place for over last 16 years since the launch of the scheme in 2002, according to a report of the Indian Institute of ManagementAhmedabad and UNICEF. The collaborated study on the implementation of scheme, however, notes that the government failed to provide information even under the Right to Information (RTI) Act and therefore lacked in data on how many of the bonds were realised. Consequently, the researchers used date from other reports like CAG among others for the report. (See related report inside) The Vidya Lakshmi Yojana was launched by the BJP government in 2002 when the dropout rate among girls between class I and class VIII was a staggering 35 per cent — almost one-third of girl students used to drop out from schools every year. To re- Even though the fall in dropout rate has been significant, it is difficult to ascertain the scheme’s contribution to it: Report duce and dropout rate and enhance education among girls, the government launched the scheme for girls belonging to below poverty line (BPL) families of urban areas and those living in villages reporting less than 35 per cent literacy levels. As per the scheme, when girls enroll in class I of a government school, they are entitled to receive a Narmada Nidhi bond of Rs 2,000 (which was Rs 1,000 till 2012). On completion of class VIII, the bond is matured and returned to them with interest. The bond is purchased in the joint name of District Education Officer (DEO) or District Primary Education Officer (DPEO), the girl student, and parent/guardian on enrollment in Class I. Although the government attributes the reduction in the dropout rate among girls — from 35 per cent in 2001-02 to mere 7.28 per cent in 2013-14 — because of the success of the VLY, the IIMA-UNICEF research found that the bonds were not attractive enough. The report stated that all households claimed that the mix of a very high gestation period of eight years and a “mea- gre” amount, ranging between Rs 3,500-4,000 for Rs 2,000 Narmada Nidhi bond due to the “fluctuating” interest rate — varied between 11 per cent and 8.5 per cent — made the scheme “not attractive enough or worth all the administrative hurdles”. From 2003 to 2013, the state government purchased bonds worth Rs 163.24 crore in the scheme, as pointed out in the CONTINUED ON PAGE 2 ‘GOVT FAILED TO GIVE INFO UNDER RTI’, PAGE 4
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