Delhi polls: How did our MLAs get so filthy rich so fast?

For all the talk of global economic slowdown and downturns, our netas, it turns out, have not only escaped the recession but managed to strike gold with their investments.

The one business that has boomed like no other even as the country’s growth rates have been falling is that of politics. Our MLAs, their affidavits submitted to the Election Commission show, have never been more prosperous and their businesses never more lucrative.

Sixty-six Delhi MLAs who are re-contesting polls, finds a study by the Association of Democratic Reforms (ADR) and Delhi Election Watch, grew their assets by an average of Rs 7.5 crore in the last five years.

Commenting on the findings, Anurag Mittal, national coordinator for ADR says, “It is not an issue if a politician is a crorepati. It becomes an issue when the increase in his or her assets is not justified by their source of income, which unfortunately is what is reflected in the affidavits declared by candidates to the Election Commission. In their case, the increase is not substantiated with the proportional increase in their incomes.”

To give these figures some perspective, Mittal compares the increase in assets of MLAs to those of ordinary working professionals.

“On an average basis, the analysis shows that 51 percent is the increase in the assets on a yearly basis (of the 66 re-contesting MLAs). Now If I am an ordinary person and I make a fixed deposit with any of the nationalised banks or with private company, I can make a maximum return of 15 percent, even if it is a corporate investment. How is it that these MLAs are able to have this kind of phenomenal increase on a yearly basis? An ordinary person with best investment he or she makes, can at best hope 10 or 15 percent.”

Given the narrow definition of ‘family’ as spouse and dependent children for financial disclosures in the affidavit, the actual asset value of the MLAs could be much higher, says Mittal.

“Currently the definition of family is pretty narrow. There are many candidates who are single. For example, a top politician in Uttar Pradesh conducts many of his transactions in the names of relatives, sisters, near and dear ones. But those kinds of disclosures are not included in the affidavit submitted to the Election Commission. Candidates are only reporting assets in the name of spouse and dependent children. But ‘related party transaction’ are not currently getting reported.”

A surprise entry on the top ten list of the 66 re-contesting MLAs in Delhi with the highest asset increase (rupee-wise) between 2008 and 2013 is chairperson of the Delhi Commission of Women Barkha Singh. A sitting Congress MLA and candidate from South Delhi’s RK Puram, Singh finds herself at the No 9 spot. Her assets almost trebled from Rs 8.7 crore in 2008 to Rs 21.7 crore in 2013.

But Singh’s 149 percent increase in asset value pales in comparison to gains made by Sat Prakash Rana, the sitting BJP MLA renominated from Bijwasan. He went from being valued at Rs 6.4 crore in 2008 to a jaw-dropping Rs 111.9 crore in 2013.

Immovable property — agricultural land, self-acquired property, investment in property by way of development or construction — owned by his wife and him add up to, believe it or not, Rs 108.9 crore.

The second most successful MLA, going by his increase in asset value (percentage wise), is Congress MLA Asif Mohd Khan, the candidate from Okhla. Khan’s assets increased by 1634 per cent from a meagre Rs 75 lakh in 2008 to an incredible Rs 13.5 crore in 2013.

So how are our MLAs getting so rich so fast on an MLA’s salary and how on earth are they justifying it? Rising property prices and income from other businesses are how MLAs are explaining their sky-rocketing financials.

But Mittal isn’t buying these explanations.

“Those who’ve had a phenomenal increase in assets also have businesses on the side, say their supporters. But if they are running a business, why is their average asset increase in crores. On one hand, they keep saying there is a recession and that they need to be bailed out, their loans waived off. How can they then justify this increase in on account of their businesses?” asks Mittal

The most common excuse by politicians, says Mittal, is that the property they bought five years ago has appreciated phenomenally and thus the increase in asset value. “They cite the astronomical rise in property prices. So basically they are saying that there is no substantial increase in their movable assets but it is their immovable assets that are responsible for this spike. But then again, there are candidates who have recorded their immovable assets as zero! So it is not just on account of immovable assets that the increase is happening.”

Mittal also contests the rise in property price claim. “Why is the market valuation of a property so high in the first place? It is because there is so much black money in the purchase of property. It is the black money that is jacking up the prices and so in an indirect way it is the politicians who are responsible for the rise market value of these properties The price paid in white gets registered in the land record but the actual market value with premium is paid in cash.”

Asked how such phenomenal asset rises could be made more transparent, Mittal brings up the Real Estate Regulator Bill.

“There has to be real estate reforms. The bill is there but only bills that suit politicians get priority. The Real Estate Regulatory authority which is supposed to stem the flow of black money will never see the light of day if the politicians can help it. Perhaps through the PIL mode it can be fast-tracked and these issues taken up,” say Mittal.

See the full report and data on by how much assets of 66 re-contesting MLAs increased over the last five years here .