Corruption Scandals
In July 1993, Rao's government was facing a no-confidence motion, because the opposition felt that it did not have sufficient numbers to prove a majority. It was alleged that Rao, through a representative, offered millions of rupees to members of the Jharkhand Mukti Morcha (JMM), and possibly a breakaway faction of the Janata Dal, to vote for him during the confidence motion. Shailendra Mahato, one of those members who had accepted the bribe, turned approver. In 1996, after Rao's term in office had expired, investigations began in earnest in the case. In 2000, after years of legal proceedings, a special court convicted Rao and his colleague, Buta Singh (who is alleged to have escorted the MPs to the Prime Minister). Rao appealed to a higher court and remained free on bail. The decision was overturned mainly due to the doubt in credibility of Mahato's statements (which were extremely inconsistent) and both Rao and Buta Singh were cleared of the charges in 2002.
Rao, along with fellow minister K.K. Tewary, Chandraswami and K.N. Aggarwal were accused of forging documents showing that Ajeya Singh had opened a bank account in the First Trust Corporation Bank in St. Kitts and deposited $21 million in it, making his father V. P. Singh its beneficiary. The alleged intent was to tarnish V. P. Singh's image. This supposedly happened in 1989. However only after Rao's term as PM had expired in 1996, was he formally charged by the Central Bureau of Investigation for the crime. Less than a year later the court acquitted him due to lack of evidence linking him with the case.
Lakhubhai Pathak, an Indian businessman living in England alleged that Chandraswami and K.N. Aggarwal alias Mamaji, along with Mr. Rao, cheated him out of $100,000. The amount was given for an express promise for allowing supplies of paper pulp in India, and Pathak alleged that he spent an additional $30,000 entertaining Chandraswami and his secretary. Rao and Chandraswami were acquitted of the charges in 2003,
Read more about this topic: P. V. Narasimha Rao
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