Corporate leaders like Azim Premji, Deepak Parekh write to government, suggest reforms to curb graft
Corporate leaders has written to the govt acknowledging the existence of a “strong nexus between certain corporates, bureaucrats and power-brokers”
By ET Bureau | Updated:
MUMBAI: Even as Parliament’s standing committee continues to debate various versions of the Lokpal Bill, a pressure group that calls itself the Group — largely comprising corporate leaders — has written to the government acknowledging the existence of a “strong nexus between certain corporates, bureaucrats and power-brokers” and suggested a litany of reforms in areas such as the judiciary, police, land acquisition and environmental clearances.
The group, which also includes two judges, a former RBI governor and a retired civil servant, has said this nexus poses “one of the greatest threats to the Indian economy”. The reference to a nexus between companies and the government — a phenomenon which is widely acknowledged to exist —is unusual for business leaders.
Corruption hits all:
Most Indian business leaders have traditionally shied away from direct references to the seamier side of business. The alleged nexus is at the heart of ongoing investigations into the so-called 2G scam and probes into illegal mining in Karnataka.
The group that includes the great and the good of Indian business — including Azim Premji, Deepak Parekh and Narayan Vaghul — also listed various steps that they hope would ease the common man’s daily encounter with corrupt officials and corrupt practices.
“Almost every interface of the common man with public officials is impaired by corruption, especially in the most routine transactions, such as the grant of pattas, issuing of birth/death certificates, utility connections and availing of entitlements, amongst several others,” the second open letter from the Group said.
The group, which also includes two judges, a former RBI governor and a retired civil servant, has said this nexus poses “one of the greatest threats to the Indian economy”. The reference to a nexus between companies and the government — a phenomenon which is widely acknowledged to exist —is unusual for business leaders.
Corruption hits all:
Most Indian business leaders have traditionally shied away from direct references to the seamier side of business. The alleged nexus is at the heart of ongoing investigations into the so-called 2G scam and probes into illegal mining in Karnataka.
The group that includes the great and the good of Indian business — including Azim Premji, Deepak Parekh and Narayan Vaghul — also listed various steps that they hope would ease the common man’s daily encounter with corrupt officials and corrupt practices.
“Almost every interface of the common man with public officials is impaired by corruption, especially in the most routine transactions, such as the grant of pattas, issuing of birth/death certificates, utility connections and availing of entitlements, amongst several others,” the second open letter from the Group said.
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“It’s a joint effort by the 14 of us. We’ve met on numerous occasions. The government has appreciated what we have done,” Deepak Parekh, chairman of HDFC Ltd, India’s largest mortgage lender, told ET. This is the second occasion that the group has sought to engage with the government.
An open letter was sent to national leaders, including the prime minister’s office, on January 17 that sought to highlight endemic corruption. The follow-up letter dated October 3, though released only on Monday, suggested “urgent and concerted action”, including land, electoral, judicial and police reforms, so that “positive transformation can begin to be achieved.”
While it supported a ‘well-crafted’ Lokpal Bill, the Group said an ombudsman is only a “small but critical step” towards the national task of weeding out corruption in India.
However, they felt that such a Bill would only address the issue of “episodic corruption” rather than “insidious and demeaning” day-to-day corruption.
An open letter was sent to national leaders, including the prime minister’s office, on January 17 that sought to highlight endemic corruption. The follow-up letter dated October 3, though released only on Monday, suggested “urgent and concerted action”, including land, electoral, judicial and police reforms, so that “positive transformation can begin to be achieved.”
While it supported a ‘well-crafted’ Lokpal Bill, the Group said an ombudsman is only a “small but critical step” towards the national task of weeding out corruption in India.
However, they felt that such a Bill would only address the issue of “episodic corruption” rather than “insidious and demeaning” day-to-day corruption.
As the Lokpal Bill is unlikely to have “any significant impact” on such day-to-day corruption, the Group cited the need for legislation such as the UK’s Bribery Act, enacted in July 2011. The UK Act makes it illegal to offer, receive and failure to prevent bribery and extends culpability to the highest levels in case of a corporation.
However, for any such legislation to be successful, there needs to be a strong judiciary that can ensure timely punitive action — an area where India needs to improve.
India only has 10 judges for every million citizens, compared to 50 in the UK and 107 in the US, the letter said. Speaking to ET, Parekh rued the absence of judicial reforms. “When was the last time we talked about judicial reforms? We need twice the number of courts.
Our businesses are complex as most of them are family-run. We need redressal systems. Otherwise, when there is a dispute we won’t hear for 10-20 years.” “We need police reforms. If we don’t look after them, pay them the (commensurate) salaries and give them good housing, then how can we expect them to be effective?” Parekh asked.
Premji, one of the richest Indians and chairman of Wipro Ltd, India’s third-largest software services firm, declined comment. N Vaghul, chairman emeritus of ICICI Bank, was traveling, and Ashok Ganguly, former chairman of Hindustan Unilever, was not available for comments. Bimal Jalan, former RBI governor, declined comment.
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In order to come up with specific recommendations, the Group has also commissioned a team of select professionals to “study issues of governance and public accountability” and the results will be made available to parliamentary committees.Download
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