Narendra
modi has been inviting foreign investors in our country to put their
money in India. He is giving promises to these foreign investors that
investing in India is very safe and very profitable. However, we see
that at the same time many Indian investors are going out to invest
their money in other countries. Why this is happening? Foreign
investors obviously want to know answer to this question. On this
post I want to elaborate on this question. I have been studying this
subject for some time and while doing that I found four monsters who
are causing this transfer of investors out of the country. Presently,
we do not have any solution to control these four monsters. I call
them monsters because they are so big that ordinary efforts will not
be enough to control them. These four monsters hold key to this
country and marginalizing them to make them behave so that investment
and doing business in India will become convenient is not easy. Most
business prefers to keep out of any controversy to avoid their wrath.
I am not any businessman and so I feel it is not difficult for me to
expose them and suggest solution to this problem. Somebody has to do
it for the benefit of all foreign as well as Indian businessmen so
that they can come and invest in India. We all know their coming in
India is essential for our development. I hope this post will clear
all haze around this topic and these foreign businessmen will be able
to voice their concern to our government and clearly demand that
these monsters are quelled. India's progress needs that these four
monsters are controlled in the most democratic manner. Let me spell
them for my readers.
Politicians
is the first monster to begin with. Even though politicians are now
being controlled by making them answerable to people; the efforts
however are not enough and more control on them is required to make
them behave as servants of people and not masters of people. Mr. Modi
has called himself kamdar meaning a servant but how much of this will
reflect in actual political circle is yet to be seen. Today we have
rules by which politicians who contest have to declare their assets
but there is no exposure to the party high commands. Recently
somebody has filed a PIL asking political party high commands to
declare their financial position in Court but that is not enough.
Total answerability to people should be made mandatory for all party
high commands by law to bring proper control on their activities.
Looking to the present arrangement we observe that this high command
is the actual rulers in this country even though they do it though
members of their party. MPs and MLAs are only carrying on orders
given by these high command of that party. Lot of work is being done
in this direction and so let me hope that in due course this monster
may be properly tamed and made to work properly. Taming this monster
is comparatively easy because they have to face elections and at that
time they have to answer voters. Other monsters of whom I shall write
are not having this type of restrain and so taming them is very
difficult; we shall see that in the following part of this post.
Bureaucracy
in second monster to be controlled. This monsters in as yet not
brought under proper control at all. Bureaucracy is not answerable to
people thus far. Their behavior is most objectionable. I came to know
from some elected politicians that most failures of political parties
are due to non co-operation of their bureaucracy. Failure in keeping
promises is often the cause for fall of many parties. People blame
them for not fulfilling the promises they give during elections but
the real culprit is the bureaucracy involved. This bureaucracy simply
does not co-operate with the concerned political person and the
failure occurs. These politicians do not declare that fact to their
voters because they are not wanting further harassment from the
concerned bureaucracy. To resolve this and to bring this second
monster in proper control we must make this bureaucracy totally
answerable to people. We often hear news that MP or MLA assaulted a
bureaucrat. Most cases only register this part but conveniently
connive at the other side of the story. Why that politician became so
desperate is never considered. I have found in most cases this
bureaucracy never cares to reply or even acknowledge the letters sent
to them or if at all they do it it is done very late and the reply is
mostly very ambiguous. A regular legislation must be passed to that
effect so that similar to RTI all government departments care to
answer inquiries send to them by citizens. The nature of questions
will be direct to them asking them to explain why they have failed?
Why the delay? It must be obligatory for every officer to give answer
to public and all their replies will be open for public scrutiny.
General behavior of offices in all government and pseudo government
organizations is of total arrogance. They behave as if they do not
care for people. This must stop. Foreign investors will suffer due to
this high handed behavior of these bureaucrats. Indian businessmen
are already suffering due to this behavior of bureaucracy. Nobody can
control it since we do not have any powerful law to make them answer
people. Our law designers, being themselves bureaucrats, are playing
safe while preparing laws. It has been noticed that our bureaucracy
is comprises of most incompetent, lazy, corrupt and unintelligent
people. They are known to be competent in offering excuses to cover
up for their incompetency, laziness and inability! Interesting part
is that all bureaucrats are working in unison and try to protect each
other from any onslaught on any one of them through any inquiry. This
makes our Indian business to accept other option of going out of this
country. Because there is no way to counter them. Bureaucracy is
always right in this country whatever they do. Nobody can question
them as there is no proper legal provision to help public who wants
to ask them. This monster is primarily responsible for most failures
of our governments. Making them answerable and giving out names of
these incompetent persons holding top positions should be the way to
make people know exactly who are stopping the progress of our
country. News media is reluctant to mention their names while giving
news of their irresponsible work. We often consider that our
politicians are the cause of failures but the detailed study of most
projects reveals that the real culprit is bureaucracy involve. While
we can replace politicians we cannot remove a bureaucrat from his
job. It is at least not that easy. At the most they are transferred
to other department, that does not make any punishment to them. They
are always sitting in some chair or other. At the most they are
transferred but that is not enough to bring efficiency in the
government. I know of one corrupt bureaucrat who was transferred from
MHADA Mumbai office, to Nanded office. I asked him how are things
with him? He told me, he is very comfortable and making his money in
Nanded projects! He further told me cases are pending and they will
keep pending. He seems to be not bothered about them at all. This is
the condition with all bureaucrats. To protect them they often make
use of rules demanding confidentiality in governmental work. This
provision is most cleverly misused to avoid public interference. They
are by today's available system most protected persons and
invincible. A bureaucrat is particularly protected by some laws so
that their courage has become a menace to public. Whoever may come as
a political party final rulers are these bureaucrats. Controlling
this monster is possible if we make them answer people on questions
demanded on them similar to RTI act. However, I was told by some that
present RTI act is not enough to squelch or tame this monster of
hardened bureaucracy. Foreign investors make it compulsory for our
government to bring all necessary modifications in the present law so
that this monster is in complete control by making them answer public
inquiry without protection of confidentiality. Confidentiality was
introduced by British law to control public who were not masters
then. Today this public is master of the country and so keeping
things from them by this act of confidentiality is anti democratic
and so must be abolished. Only those matters related to border
security and national security may be retained under this act but
this act of confidentiality is misused extensively by our bureaucrats
today to protect their misdeeds. Foreign investors must be careful of
this monster. So long as this monster remains as it is today; coming
to India to invest is amounting to falling in their trap. I do not
want to write any more on this. I include Police department in this
monster but they are worst amongst all bureaucrats. Other bureaucrats
indulge in only civic crimes but police indulge in both civic as well
as criminal.
Judiciary
is third monster. This monster is worst of all. They think they are
gods! This makes it impossible to question them. Two measure tactics
they very often use are, delay tactic; in this they prolong court
cases so much that the plaintiff is either demoralized or dead and so
the culprit gets free. Our judiciary system is primarily designed to
pretend to be helping justice but in actuality it is working to
protect culprit. If we study our laws this becomes obvious but at
present nobody dare voice against that. The way loose ends and
ambiguity maintained in designing laws makes it very clear. They have
various excuses to justify this motive, I have already written about
it in my previous posts and so I do not want to write on that here.
Second tactic is more sinister. Transfer of judges is the tactic
which prolongs cases and helps the accused immensely. Judiciary must
be made to explain why the delay? A judge must compulsorily give
acceptable reason to plaintiff and also the accused for the delays
taking place in handling cases. It should be compulsory to produce
such reports on cases a judge is working on. Before all that,
government must make them judges, understand that they are servants
of people and not any gods! This will bring these judges to some
sense and may help improve their behavior with people. About second
tactic any transfer of a judge from any case will require prior
permission of concerned parties, both plaintiff and defendant. A
judge cannot request for transfer from a case under any reason or
excuse. Without that such transfers will not be possible. If this
restriction is imposed, one experienced advocate told me, many cases
will get resolved in record time and will help reduce the list of
pending cases considerably. Last but not in the list is reducing
holidays our judges enjoy. If these corrections are introduced it
will improve our judiciary system so that foreign investors will feel
assured of justice in case they have to face litigations in this
country. Which they will have to undertake if they have to do
business in this country. Cases pending for several years must be put
under special inquiry. If these measures introduced things may
improve. Our judiciary very proudly claims that in Indian judiciary
they are so particular to protect innocent person that they will
allow 100 criminals to set free to save one innocent person. This
claim shows that it has license to set free 100 criminals in the
excuse of saving one innocent! This claim actually exposes the
callousness (and pro-crime attitude) of our Judiciary system. This
has made it a monsters.
Reserve Bank of India is fourth monster. For all commercial
activities this monster becomes the most dangerous fellow to manage.
Interesting part is that RBI is not answerable to people. People
cannot ask them questions about their wrong decisions. Here I am
referring to the position of depositors in banks.
The manner in which RBI is trying to avoid its own moral and
financial responsibility towards depositors in an ailing bank
whatever it is, whether commercial or co-operative, in a very
convenient manner is very objectionable. But there is no provision at
present that a depositor can ask RBI a question and make it give an
acceptable reply. Nobody in RBI is answerable for the failure of a
bank. This situation is very dangerous for all depositors whether he
is an India or a foreigner.
The very purpose of RBI, as the central bank of India is to safeguard
interests of all depositors with all banks. RBI very proudly mentions
it also. When RBI sanctions a license to function as a bank it is
expected to keep watch on that bank's functions; that includes
lending and recovery activities of these banks as well as other
related functions. For that purpose RBI takes regular periodical
inspection of the working of these banks and that is to ensure that
all licensed banks function normally and do not do anything wrong so
that it may go red. If RBI notices that the working of a bank is not
in accordance with the norms recommended by RBI; the RBI is supposed
to take disciplinary action against that bank. Concerned defaulting
bank management is compulsorily supposed to go by that guideline and
improve its working so that no further damage is done to the funds
depositors have kept with the bank. As we all know that the very
functioning of any bank is in proportion to its deposits. Therefore,
protecting these deposits is the prime responsibility of that bank as
well as that of the RBI. Now the question comes as why in spite of
all these arrangements a bank goes red? Obviously that happens
because the failing bank does not observe guidelines given by the
RBI. Second question comes is that why RBI did not take serious note
of that bank as it does not observe its guidelines? If RBI had been
appropriately vigilant that would not happen at all. That means when
a bank fails it is responsibility of both banks, concerned failing
bank as well as RBI.
Depositors depend on the truthfulness of RBI and all his deposits are
safe so long as RBI is properly vigilant about all these deposits.
When anybody puts its money with any bank he presumes that it is safe
because RBI is looking after its safety. That is the meaning of
license. People do not trust any bank unless it is properly licensed
by RBI. This suggests that when a bank goes red it is the equal
responsibility of that bank as well as RBI. If RBI had been properly
vigilant no bank can ever go red.
Now that the banks have gone sick RBI behaves as if it is not
concerned. This behavior of our Reserve Bank of India is criminally wrong.
RBI must accept equal responsibility for the
failure of that bank. However, we see that our RBI wants to shed that
responsibility in a very convenient manner. No bank goes red in one
day. It takes many years for a well running bank to go red so much so
that need for takeover arises. There is enough time for RBI to take
essential disciplinary action and if it had taken that action that
bank would not have failed. That clearly means that all failures of
all banks are due to irresponsible manner in which this RBI works.
This is the true nature of this fourth monster. We have seen so far
many banks are duped by its managers and directors but RBI has not
bothered to give any explanation about how such a thing could happen
in spite of vigilance of RBI? The only way to control this monster is
to make it compensate all depositors of their deposits
unconditionally. If this condition is imposed on this monster RBI
will behave more responsibly. In addition to that proper punitive
action taken on the officers concerned. There is a miserable
provision to give only one lakh by way of some insurance, what type
of cheating is that? Are the depositors beggars? Why only one lakh
why not complete money? What is the meaning of license of RBI? Many
such questions come up and RBI must reply acceptable answer. However,
there is no such provision and this standard bank of India goes
without answering. We have seen American Standard Bank helped their
banks in trouble and all money of depositors was returned to them.
American Standard Bank did not tell depositors that they go to hell
like our RBI. Today no such condition exists and so RBI is working in
the most irresponsible manner. We should call this bank Robber Bank
of India, rather than Reserve Bank of India! There is no punishment
to these four monsters for not working their duties properly and that
has made them careless about their duties. Complete revamping of
present laws those guide working of this Robber Bank of India should
be done by Modi administration to bring justice to helpless
depositors. All foreign investors must demand that all these and more
controls are imposed on these four monsters so that they are tamed
and so work properly. I noticed during economic crisis in U.S.A.,
that central bank provided enough funds to concerned banks and all
depositors were paid their money. This is the example that shows what
is sense of responsibility. Unless and until this sense of
responsibility is inculcated in these four monsters our country will
never make real progress. We talk a lot of corruption but what is
corruption? That is effect of these monsters. So long as they are not
tamed corruption shall not go from this country. We should remember
what father of modern economics, James Adams said, he pointed out in
his treatise that if wrong laws exist corruption and smuggling will
save the economics of that country! That means, corrupt laws are
managed by corruption. When we talk of removing corruption from our
system we should first remove corrupt laws. Can Modi achieve this?
Finally, I shall warn all foreign investors who may be wanting to
come to India and open their businesses should take precautions as
mentioned above. If they fail to do it and invest their funds and
efforts in India and get stuck up in the tentacles of these four
monsters they should not blame poor people of India because, they are
those unfortunate Indians who are already stuck up in the grip of
these four monsters and are suffering. We are not having any power to
protect our prospects from these monsters; we have to keep suffering;
but outsiders have an option of not coming to this country at all.
The way big business from this country is gradually leaving this
country one can imagine how impossible it is for people of this
country to control them.
However, there is a silver line to these monsters. Not all
politicians, bureaucracy, Judges are bad. Occasionally we do come
across some individuals who are exception to this rule. We should
give them a chance to talk their side. In one of my future posts I
shall discuss their side so, if you are interested in this topic
please be with me on his blog. Recently our new PM of this government
told in one speech that money of bank belongs to poor people of the
country. This is a very wrong statement. That money does not belong
to all poor people of this country but it is a very private
investment of individuals poor or rich. By calling this money belongs
to all poor people he seems to have given license to banks to dupe
private depositors! This is a very dangerous statement and every body
must be careful what is next from this politician. Of course Mr. Modi
comes from the first monster. Land acquisition bill that has come is
one more wrong move of these politicians to rob people of their
livelihood. This is brother of SEZ
(Special Economic Zone) act.
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