Mani Shankar Aiyar Reflects on the 1971 ‘Nagarwala Scandal’ and Its Impact

Former Union Minister Mani Shankar Aiyar revisited the Nagarwala scandal of 1971, speaking on the political landscape and characters involved, during the launch of 'The Scam That Shook a Nation.' He reflected on India's military and political decisions leading up to the creation of Bangladesh.

Former Union Minister Mani Shankar Aiyar revisited the 1971 Nagarwala scandal at the launch of the book 'The Scam That Shook a Nation.' Aiyar noted that the Indian Army and the political leadership under former Prime Minister Indira Gandhi were united in their response to the influx of East Bengali refugees and actions of the Pakistani military.

Addressing the audience, Aiyar described Rustam Sohrab Nagarwala, a retired Indian Army captain central to the scandal, and Ved Prakash Malhotra, the then head cashier at the State Bank of India's Parliament Street branch. Malhotra had mistakenly believed he received a phone call from the Prime Minister's secretariat, instructing him to transfer Rs 60 lakh for a clandestine mission related to the East Pakistan liberation struggle.

He opined that the incident should be termed a 'prank turned sting operation' rather than a scandal. Reflecting on the charged political climate of 1971, Aiyar emphasized the unity between the Indian Army and the political establishment, while critiquing opposition efforts to undermine Gandhi's leadership. He underscored the importance of strategic decisions made by Gandhi, PN Haksar, and General Sam Manekshaw in addressing the crisis.

(With inputs from agencies.)