The Centre accepted the report of a judicial commission that indicted former Punjab chief minister and Akali Dal leader Parkash Singh Badal and six of his ministerial colleagues for corruption, favouritism, nepotism and administrative impropriety. It asked the state government to act on the report. The one-man Justice Chhangani commission of inquiry was set up three years earlier after former Akali minister Trilochan Singh Riyasti and CPI leader Satyapal Dang made the allegations against Badal and his colleagues. Of the 91 allegations, the commission upheld 30. The commission held as proved a charge against Badal that he had demanded and received illegal gratification of Rs 20,000 to grant extension of route permits to a private bus service.
Trusts In Trouble
The government tightened tax laws to curb misuse of trusts. Trusts could now only invest in government companies or government-controlled companies. Union Finance Minister C. Subramaniam told Parliament that many religious and charitable trusts were created to avoid taxes and control industries. God had been most abused by tax evasion through the formation of trusts, the minister said, adding that genuine trusts need not worry about the development.
Four Naxalites were killed in an encounter with the police in the Giraipalli forest area in Medak district on the night of July 25, according to a report. The police claimed to have recovered two pistols, seven rounds of live ammunition, five daggers, a bag containing hand bombs and party literature.
Girls in Orissa were told not to wear tight-fitting clothes, “stretch pants” and the like by the police. The state police were on an “anti-hippie drive” and they considered mini skirts and “modfits” to be part of “hippie culture”.