Business Ethics Fodder Scam Final

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Presented By, Vinay Bhagat ( 06) Saurabh Kumar ( 32 ) Prakash Adimulam ( 53 )

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The Fodder Scam People Involved Legal Proceedings End of Laloos Chief Ministership Legal Prosecution Unethical issues found Current Status of the Scam Impact of the Scam Conclusion

The Fodder Scam involved hundreds of millions of dollars in alleged fraudulent reimbursements from the treasury of Bihar state for fodder, medicines and husbandry supplies for nonexistent livestock.

The Scam was said to have its origins in small scale government employees submitting false expense reports with involvements of politicians .

February 1985-delayed monthly account submissions by the Bihar state treasury and departments. Continuous chain of closer scrutiny 1992, Bidhu Bhushan Dvivedi-submitted a report outlining the fodder scam.

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Mr Laloo Prasad Yadav Mr Jagganath Mishra Government Employees Mr Jagdish Sharma Various IAS & Politicians

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The scandal broke out initially in 1996 but was previously running from almost one decade. It was initially noted by Auditor General of India by Mr. Chaturvedi IN Feb 1985. In 1992, Mr. Bidhu Bhushan Dviivedi, a Police Inspector with state anti-corruption vigilance submitted a report outlining Fodder Scam On 4thjan 1996, the Deputy commissioner Amit Khare conducted raids on the offices of AHD in Chaibasa district

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The CM Laloo Prasad Yadav ordered constitution of committee to probe the irregularities. On march 1996, Bihar High Court court handed the case to CBI. On march 1997, Mr. Biswas CBI Director requested Governor of Bihar to prosecute Laloo. On June 17, the Governor gave permission for Laloo and other five senior Bihar government officials. On June 23 ,CBI filed charge sheet against Laloo and 55 other co-accussed.

Laloo parted ways from Janta Dal and formed his own party RJD With pressure mounting from other parties Laloo resigned but was able to install his wife, Rabri Devi as the new Chief Minister on the same day Rabri Devi won the trust of vote with the help of congress and Jharkand Mukti Morcha.

Moral and Ethical values of Democracy were brutally violated Misuse of Power and position Misuse of Public Funds

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Laloo was charged with cheating , criminal conspiracy and prevention of corruption act. He was jailed for several times. With division of Bihar state, most of the cases were filed in the new Bihar, Jharkhand and Ranchi State In 2007,62 former officials and suppliers were convicted and given term of 5 to 6 years. About 23 people were punished with jail terms between 2 to 7 years.

About 298 were accusssed in 35 fodder scam cases  62 convicted in fodder scam, 23 jailed


Since it broke into public light, the Fodder scam has become symbolic of bureaucratic corruption and criminalization of politics in India generally, and in Bihar and Jharkhand. Indian economy a shattering RS 950 crores Government responsible. employees became more

Unethical !!!!

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