Saturday, April 6, 2013

14. Dr. MANMOHAN SINGH AND Mrs. SONIA GANDHI


14

Mrs. SONIA GANDHI

Congress President Mrs. Sonia Gandhi, on 22 May 2004, congratulated Prime Minister Manmohan Singh for providing “dignified and effective leadership” to the government and for enhancing India’s prestige abroad. She added that his government was a responsive one and its actions were louder than the words.
The media gave great publicity to her words.

(To be continued)

13. PRIME MINISTER MANMOHAN SINGH AND PARLIAMENT


13
THE PARLIAMENT

         The Lower House of the Parliament - called Lok Sabha - adopted the Right to Information Bill on 12 May 2005.
        If someone thinks that something exists, he can – based on the above Act – seek more pieces of information. This would help solve the personal problems of a person.
        If he does not know the existence of something, he cannot seek anything.
       Thus, this Act deceives the people in the pretext of transparency. In fact, the industrial houses removed public money with easy after the enactment of this Act.

(To be continued)

Thursday, April 4, 2013

12. PRIME MINISTER MANMOHAN SINGH AND THE OPPOSITION PARTIES


12.

THE OPPOSITION PARTIES

      The Communist Party of India (M) (CPI-M), in May 2005, demanded the Government to revoke the sale of the public sector hotels belonging to the Indian Tourism Development Corporation (ITDC). Thus, for the first time, the CPI (M) demanded the Government to take back a privatized Public Sector Undertaking (PSU).
     To the utter surprise of everyone, the Bharathiya Janata Party (BJP) –the principal opposition party- on 16 May 2005, said that the party favoured an inquiry into the sale of the ITDC hotels.
On the same day, BJP leader Mr. L.K. Advani expressed the readiness of the BJP to support the Government on any reform vital for India’s economic progress. He asked the Prime Minister not to depend on the Left parties for this. Thus, he exhorted Prime Minister Dr. Manmohan Singh to go ahead with his plan to give Re.3 lakh crore in the Provident Fund (PF) to private parties..
On 5 June 2005 the CPI and the CPI (M) opposed the proposed disinvestments in the BHEL.
(To be continued)




11. Dr. MANMOHAN SINGH AND THE SUPREME COURT OF INDIA



11

THE SUPREME COURT OF INDIA

1.In a significant ruling, a five-Judge Constitution Bench of the Supreme Court of India, on 5 May 2005, held that erring companies are liable for criminal prosecution and could be punished with imposition of fine for fraud and financial irregularities. However, the Bench said that only fine could be imposed on the companies, as imprisonment could not be awarded to a company. The reason given is that the companies are only juristic and not natural persons.
      The majority view held “the law equally applies to actual and juristic persons. The law does not grant blanket immunity to companies if found guilty of offences”.  
    A judge in his concurring judgement said that in view of the large-scale financial irregularities witnessed in the country and its bad effects on the country’s economy as well on the society, it was necessary that companies should also face prosecution along with those who committed the offences.
     Two learned judges differed with the majority.
It must be noted that the court quite unequivocally admitted the large-scale financial irregularities that had taken place in India.

       The High Court, Delhi quashed all charges against three Hinduja brothers in the Bofors case. The Court said that the CBI failed to produce original documents. The Court deplored that the exchequer had to spend 240 crore in the 64 crore pay off case and thereby tarnishing the image of political leaders for more than 20 years.

      In the meantime there were reports that the National Judicial Academy decided to conduct a three-day refresher course to the learned judges of the Supreme Court.

The Supreme Court Bench comprising Justice Y.K.Sabharwal, Justice D.M. Dharmadhikari and Justice B.N.Krishna on 19 July 2005 cancelled 81 petrol pump allotments that were granted on extraneous considerations.  The enquiry committee headed by Justice S.C.Agarwal had identified these companies as tainted. Thus, the Supreme Court cancelled the allotments made by the NDA Government to its kith & kin. Now Reliance Industries alone is permitted to allot 5000 petrol pumps to its kith & kin and the Supreme Court sits as if it is immune to environmental changes. Does anything in the Constitution- Liberty, Equality or Fraternity- justify it?


On 24 July 2005, Justice Markandey Katju, Chief Justice of High Court, Madras, said, “The people have the right to criticize judges because they are supreme. They are our masters and as masters, they have the right to criticize their servants. They have the right to take the judges to task if they do not discharge their duties properly”. The Chief Justice said this recognizing himself as the master of people.

Monday, April 1, 2013

10. Good-bye to Privatization?




10


GOOD-BYE
TO THE
 POLICY OF PRIVATIZATION?

The Union Cabinet on 2 May 2005 cancelled all privatization plans.
 The Government had earlier decided to sell the shares of many Public Sector Undertakings (PSUs) after retaining 51% shares and management control.
Thus, National Aluminium Company (Nalco), Shipping Corporation of India (SCI), Hindustan Petroleum Corporation Limited (HPCL), State Trading Corporation, Engineers India, Palma Larry, National Fertilizers, Rastria Chemicals & Fertilizers, Manganese Ore India, Sponge Iron India, National Building Construction, Engineering Projects India, Hindustan Paper Corporation and the public sector banks got instant life.
 Mr. S.S. Palanimanikam, the Minister of State for Finance, announced it in the Parliament on 3 May 2005.
The Union Cabinet did not revoke the above decision to the knowledge of the people.
Yet, Mumbai and Delhi airports were privatized in 2006.
Other PSUs escaped privatization. However - after a pause -the government started selling 5 to 10 per cent shares of a few randomly selected PSUs occasionally.

Tuesday, March 19, 2013

9. INDIA: UNION BUDGET 2005-2006



9




UNION BUDGET 2005-2006

      Finance Minister of India Mr. P.Chidambaram presented the Union budget for 2005-2006 on 28 February 2005.
     The receipts and expenditure are given below.
   Total Receipts = Re.3,63,200 crore, Total Expenditure = Re.5,14.344 crore and Fiscal Deficit (Borrowings) = Re.1,51,144 crore. 
     As usual, the budget was silent about the money in the Provident Fund (PF) and in the financial institutions.
    There was no proposal for any large scale investments.
    An outstanding future of the budget was the commitment to construct 60 lakh houses in one year.   The allotment for mid-day meal scheme was increased from Re. 1490 crore in 2004-2005 to Re.3142 crore..
   The above two measures have a touch of humanity, as these commitments seek to eliminate the problem of shelter and malnutrition of children.
 Another salient future of the budget was the 0.1% Cash Transaction Tax (CTT) for cash withdrawals exceeding Re.10,000/- per day from banks.
       The present writer requested the Government to impose transaction tax on 21-12-2001 through letter No.4. Later, the importance of this tax was mentioned in several letters.

     Surprisingly, The New Indian Express welcomed budget proposals. An editorial said that the budget proposals were “new and will take budget making in India to new heights”.
    The Business Line opposed budget proposals. Thus, Mr.S.Gurumurthy, in a lengthy article in The Hindu on 2 March 2005, said that the budget was framed to deceive even the intelligent.
       Seminars were conducted in colleges to discuss the importance & consequences of transaction tax.
    Addressing a meeting organized by the Madras Chamber of Commerce and Industry on the implications of the budget, on 2 April 2005, Mr. Yashwant Sinha, former Union Finance Minister, described the Cash Transaction Tax (CTT) as a “mad tax”. He wanted to completely eradicate the CTT. He said that CTT had no relevance to India at all.
     Thus the CTT was withdrawn in the budget for 2006-2007.
  The Government did not construct houses as promised in the budget. What happened to the allotted money was not revealed.



Friday, March 15, 2013

8. Dr. MANMOHAN SINGH AND TSUNAMI


 8


Dr. MANMOHAN SINGH AND TSUNAMI


     The biggest earthquake of the world in 40 years hit Sumatra in Indonesia on 26 December 2004 unleashing a “tsunami” that crashed into Indonesia, Malaysia, India and Sri Lanka. Many other countries were also affected.
   It washed away the coastal belt, particularly eastern coastal belt, in India. It killed about 15,000 people in India alone.
   The UN immediately sent a disaster assessment and coordination team to the Asian region. 
    Within no time, India announced an assistance of Re.100 crore to Sri Lanka besides sending relief teams to it.
    Relief teams were sent to Indonesia also.
      People in Europe - Pope John Paul II included- stopped work on 5 January 2005 and stood still for three minutes as a mark of respect to the victims of the disaster. Special prayers were also held in all places of worship throughout Europe.
      The President of USA, Mr. George Bush, along with his wife, Laura, and former Presidents George H.W.Bush and Bill Clinton visited Indian Embassy on 3 January 2005 and signed a condolence book.
          Many countries announced disaster assistance to India.  India politely declined it.  Many felt that the Prime Minister of India had listened to a hidden force before announcing this. Some people in India felt that he had taken a wrong decision.
     The people in France could not digest the real reasons for the refusal to accept contributions. However, the Defence Minister of France, Mr. Mechelle Alliot Marie, welcomed the decision of India.  The President of France, Mr. Jacques Chirac, expressed his willingness to work with India with regard to tsunami disaster.
       Japan came forward to help construct an early warning system based on water pressure to Asian nations.
     The Prime Minister of Canada, Mr. Paul Martin, paid a visit to India mainly to convey his condolences and very deep regret on the deaths and devastation caused by the tsunami. During his visit, India and Canada agreed to develop a tsunami early warning system.


V. Sabarimuthu is talking to a tsunami victim in the Lekshmipuram college relief camp

      Prime Minister Manmohan Singh wanted the people to send money to the Prime Minister’s Relief Fund. Further, the voluntary agencies were permitted to receive disaster assistance from foreign countries till March 2005. 
       A voluntary organization, for public consumption, pledged to adopt all children, who lost both their parents. On 31 December 2004, the Governments of Kerala and Tamil Nadu and even the Government of India talked of adopting children whose parents were no more. But, nothing materialized.  
            On 29 December 2004, a Union Minister said that money would not be a constraint for relief works.     He said that houses would be constructed for the victims.
    The political leaders demanded the Union Government to construct houses for the victims.
      On 2 January 2005, leader of the DMK Dr. M. Karunanidhi demanded the Union Government to construct houses to the victims. The public sector TV channel (DD) in its Tamil news bulletin reluctantly reported it. However, the newspapers, particularly the English newspapers, did not publish it.
PMK leader Dr. Ramadhas wanted the Government to prepare a well thought plan to resettle the fishermen.
BJP leader and former Home Minister Mr. L.K.Advani and former Prime Minister Mr. H.D.Deve Gowda,  during their visit to Lekshmipuram College -(a private college where this writer was working)- refugee camp too wanted the Government to construct strong houses.
Several other leaders also might have demanded houses for these foreign exchange earners.
The present writer wanted the Government to construct houses as was done for the earthquake victims of Gujarat.
      Simultaneously, the National Bank of Agriculture and Rural Development (NABARD) announced that it would extend loans for fishermen to buy nets and boats.
      The Reserve Bank of India (RBI) also asked the banks to give liberal loans to fishermen for the construction of houses.
            The announcement of the NABARD and the RBI did not enjoy the support of the Union Cabinet. Apparently, the “think tank” of the industrial houses floated this idea to pre-empt the Government from constructing houses.  
        The public sector TV and the print media did not give sufficient coverage to the construction of houses although the offer of loan was highlighted. This indicated that the industrial houses did not allow the Government to discharge its duty; and that they wanted the money.  
      In contrast, when tragedy struck, former Prime Minister Mr. A.B. Vajpayee said that earthquake resistant houses would be constructed to the earthquake affected people of Gujarat and he completed the work in record time with single-minded devotion.
Here, it appeared that the Government was not free to talk anything contrary to the views of the industrial houses even in the matter of disaster assistance.
 Thus, on 30 December 2004, a  Mr. Colin Gonsalves in “The New Indian Express”  said that though the right to housing in India is a fundamental right, the Government had demolished thousands of houses without relocating even one fifth of the residents. The paper cited the Yamuna Pushta demolition to make way for a tourist complex, the Lajpat Nagar demolition for the installation of a statue of Lala Lajpat Rai and Mumbai demolition for no reason. The message was that a Government that was delinquent in providing shelter to demolition victims could be excused if it failed to construct houses for the tsunami victims. The article was conspicuously silent about the reconstruction work undertaken in Gujarat.
In fact, the mass media did not give any importance to the demands of the political leaders. The newspapers, particularly the English newspapers, stopped publishing their words. In fact, the media sent everyone into oblivion in this matter after a few days.
As if to support the media, a prominent leader of the BJP, Mrs. Susma Swaraj, after an All Party Meeting on Tsunami on 9 January 2005, said that the Government should concentrate on installing an early warning system for tsunami rather than spending Re. thousands of crore on rehabilitation.Ironically, she said this while her party was organizing several public meetings in tsunami-affected areas demanding full relief to the victims of the tsunami disaster.


      The Prime Minister, during his visit to West Bengal, on 11 January 2005, praised the media for its coverage of the tsunami disaster and thus he obeyed them.
Ultimately, the Union Government did not bother to construct houses for them as was done in the case of the earthquake victims in Gujarat. The construction of the houses for the tsunami victims was left to the charity of voluntary organization and the private individuals in India.
 Noticing the interest taken by the voluntary organization,  Prime Minister Manmohan Singh, insinuated that the State Governments could convert the disaster into opportunity.
Had the Government been free, the tsunami victims would have got better relief. Thus, even in this matter, the will of the industrial houses alone prevailed. 
Thus, on one side the Union Government refused to accept assistance from other countries and on the other side it wriggled out from doing any relief work directly.
Here, the media worked against the ideal of common good even in the case of giving relief to Tsunami victims. They concertedly worked to deny tsunami threat-free houses.
The government finally allotted Re.2700 crore for rehabilitation. This amount was for subsidies and for giving loan. No money was allotted for the construction of houses. It should have allotted not less than Re.27000 crore for the construction of houses alone.
Thus the government distinguished between citizen, and citizen even in the matter of natural calamities.
Evidently, the industrial houses – and not Prime Minister Manmohan Singh –pulled the shot in this matter.




V. Sabarimuthu