The outcome had hollowed the opposition outside with the main party reduced in strength and content inside the Lok Sabha. The ruling Party became irrelevant as the electoral battle was fought and won by a single individual. No leader from the party dares to walk up to the Prime Minister Narendra Modi to tell where he was wrong. He reduced political authority of elected representatives with or without political offices. Politicians have a lust for office even without power. They brew trouble if punished but bureaucrats suffer meekly their punishments. It was much easier to deal with IAS cadre than politicians. He told bureaucrats even before his first encounter with his cabinet colleagues that they need not cow down to political bosses and deviate from their responsibility to act according to the laid down system and its rules.
Probably the Prime Minister desired to reduce scope of corruption from the political system by elevating bureaucracy. However the system of supervisory role by politicians was not replaced by an alternative system of supervision to bring competence and responsiveness to the administrative machinery. Reduction of politicians to non entities and elevation of bureaucrats removed all avenues of redress for grievances products of arbitrary and nonnegotiable decisions by bureaucrats at different levels.
Despite assurance from the Prime Minister that his doors would always remain open to hear bureaucrats with difficulties, most felt unsure of protection against the swiftly moving sword at any complaint against bureaucrat for his or her decisions. They preferred their safety in refusal to take decisions wither in favour or rejecting any proposal. They do not want to provide grounds to either party to rush with complaints against them.
Additional hurdles were caused by independence of judiciary, keen to take over the role of the executive. The judiciary at different levels became too liberal in issuing stay orders without regard to consequential damages to ongoing projects. Many found much easier method of using the agitation approach to stall projects in the name of social welfare and environment protection. The administration responded immediately to pressurize project owners to halt their projects for remedial measures.
The systemic changes have telling impact on small and medium industrial and business ventures. Even a cursory visit to Mumbai provides a picture of pathetic conditions driving the economy towards the brinks of a collapse. The most flourishing construction sector is at standstill for various reasons including the arbitrary interpretation of rules by private financiers and bankers to various projects. The Reserve Ban is unable to exercise its control to discipline private banks and stop their functioning as usurers rather than a modern lending facility. Even the RBI officials claim that private banks did not fall under its discipline and were a law unto themselves.
Where affected persons running in huge losses not only due to their stalled projects but also due to usury by private banks that lent the credits to begin with can go for redress to their grievances? Where can they complain that their rivals adopted unfair means to stall their projects by setting up mafia dons who ruled over different slums in Mumbai?
Rules relating to Non Performing Assets or unreturned credits recovery rules were framed two decades earlier. However private banks are now liberally penalizing parties that fail to return credits for three months due to circumstances beyond their control. A private bank starts charging 42 per cent interest rate by treating their lending as NPA if party is unable to meet repayment obligations schedules. No project can afford to pay such a penalizing interest rate if the courts stand in their way. If industrial ventures need to account for unexpected hindrances that are likely to stand in their way, no venture can be undertaken as the solid construction giant Gammon India discovered recently.
It had undertaken a road construction project in Maharashtra. Even though it was public utility project approved by every concerned department, the court issued stay order for stoppage of work on a 300 metre stretch to private parties. Work came to stand still. The contractor could not seek payments as the work was stalled. It could not meet repayment obligations. In two years, the interest charge was much more than the project cost. The economy of the company collapsed. Complains to the RBI over unreasonable attitude of bank elicited only response that it cannot impose its guidelines to private sector banks. Only public sector banks come under its purview. Where can any aggrieved party seek justice? The system has closed its doors to reach the prime minister directly and also through other avenues within politics as the political system collapsed with unprecedented outcome of election. Elected representatives are not willing to take up even just cause of private parties for the fear they would be accused of corruption. Bureaucrats turn their face. Media is ineffective. Only alternative is to pull the shutters down.
Gammon India case was brought to my notice by friends in Mumbai. There are hundreds of similar cases of collapse. It may not affect bureaucrats or move politicians to raise their voice. However it is also conveying clear messages to potential investors abroad with their eyes turned to India. They do thorough investigations before they venture to step in Mumbai. The conditions that prevail ad reflected in gradual collapse of middle and small sector would not encourage them to give a second thought.
The Prime Minister Narendra Modi is eager to accelerate the pace of growth. However political circumstances, changes in system though not desired but are consequence of the electoral mandate stands in his path of delivering his promises. It demands immediate corrective measures to move the bureaucracy in competent and responsive manners. It would not move unless the sword kept hanging on their heads is not removed. Return of political authority to tradition bound politicians would prove to be equally dangerous. But the question is how this can be reached to the Prime Minister. No avenue seems open even for media persons.
India
Modi's New Syatem of Governance Breeds New Predicaments
Needs Immediate Corrective Measures
Vijay Sanghvi - 2015-10-08 10:22
The unprecedented outcome of the last election to Lok Sabha has driven the system of governance in India to a new form. It does not either confirm with or conform to the known and recognized forms of government seen through different eras in history. It is not authoritarian or dictatorial regime. It has not remained democratic system though façade of democracy is maintained to serve external needs for legitimacy to the government.