I certainly don't know the truth. But I do know that there is more than enough reason for skepticism. The problem is that we need a new theory of the State. We need to re-understand the State.
There is such unanimity when it comes to analyzing the Pakistani State - that the ISI, and if not all of the ISI, at least a segment of it, is a rogue element Furthermore, that its bosses may not be sitting in Islamabad, but perhaps elsewhere in the country or even abroad. If we can accept that about the Pakistani State, why is it so difficult to accept it about the Indian State? We all know that Colin Powell was a kind of a patsy - a fall guy, who trotted out some lies on behalf of a segment of the neo-conservative movement firmly entrenched within the American State (which Obama will not touch). We also know that if the ISI has a rogue element in it, it was in good part created by the CIA. Then why do we think that the same guys couldn't render another State - such as the US - itself hollow from the inside.
The contemporary State is a different being. For every story of money-corruption you hear, there could just as well be one of political-corruption. Every vested interest who locates himself inside the State apparatus is not just a vested interest going after money but could just as well be securing the space for creating a certain politics. The RSS has a long history of trying to take over the bureaucracy, doesn't it? So do the neo-cons and so do the jamaatis. Then why do we believe in a theory of the State that is unified and with liberal goals?