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Wednesday, June 12, 2013

The Businessman-politician-bureaucrats nexus and RTI implication

Greetings from Indiaassuperpower, One stop blog on rising corruption in India and social evils.

Recently we came to know about the afraidness of Indian political parties for coming under ambit of RTI act. It felt nice to me when I saw that atleast the political parties can also be afraid of something, in the land where half of the country is run by judgments of Supreme court and Politicians thinking themselves above law.

One of the reason for this reluctance for comin into ambit of RTI act is basically EGO problem that says to each of every MP of India from within "Hey! I am the one who votes in making a law for masses , how come such law be applicable to me, IT JUST CAN'T HAPPEN TO ME" sounds really funny for these mind ignorant few who make laws/amend laws for their betterment.

There are many demerits for bringing Political parties under RTI which would directly affect the money suction capacity of party members (until they find new way of gulping money), The major problem which political parties would surely face if they come under RTI is that such move would expose the BUSINESS-MAN - POLITICIAN - BUREAUCRATS NEXUS, actually one doesnot need to be super intelligent in understanding the working of the businessman-politician-bureaucrats nexus which works together in eating Natural resources of the country and tax evasion activities.

Here I would explain in breif how does this BUSINESS-MAN - POLITICIAN - BUREAUCRATS nexus works-

A cash rich businessmen wants to start new business(or expand present business), he wants to import some raw material from abroad(which presently attracts import duty of lets say 20 percent), he contacts a in power politician of leading political party to decrease import duty to 1 percent(until his imports arrive). The politician changes the import duty (after he gets few crores as party fund from the businessmen), In this time warehouses are stocked up by ample raw material and the ministry is told to raise the import duty back to 20 percent. This moves stifles competition as others cant have the advantage of the 19 percent import duty reduction. Now imagine if Political party comes under RTI, this whole money exchanges would become public and more scams/favouritism would unearthen(which currently goes unnoticed). Now if the politician himself has stake in company then money transfer might not be required as profits of such move are shared between owners of business.

So I strongly feel that such move would never be legally implemented as it would affect bread and Butter of political parties, as we say in hindi 'Apne hi pet par laat kaun maarega'

Tuesday, June 4, 2013

Put restriction(limit) on Private property for curbing corruption

Greetings from IndiaAsSuperPower, a blog on Indian political system and corruption engulfing it.

With India becoming hotspot in Asian corruption index and Political corruption reaching all time high values, here I propose a different method for curbing the menace of corruption which can be summed up in one line as

"Put a restriction limit on private property which an individual can purchase"

India is land of 'equivalent black money' with this I mean it has official economy worth some 1.5 trillion and same value black economy running in parallel. This 'black money' is responsible for abnormal inflation, rise in Realty and other prices which affect poor and lower middle class more then anybody else, The worst affected are ones who earn less then 10,000 INR per month

Resources are very limited in India be it Land, minerals, water etc and current scenario is that rich are laundering the resources for their use and blocking them, thus preventing equal distribution between masses. Land resources is most sought of resource for the rich(those who have black money in store for them). A influential businessman in India has acres of land in his name(commercial, farmhouses, kothi, bunglow, agricultural land) because purchasing land is most easy way of using the black money(which is earned by not giving taxes, or by paying Income tax officials their share for keeping their mouth shut).

I strongly believe that there should be limit on private land owned by a family, like 500 sqyd house limit for a couple. This step would help in decreasing the amount of black money circulating in Indian economy because people would think the black money has lesser value now as their limit for property investment is over and they can't purchase anything new on their name as such move would attract a government inquiry into their assets. Other very good initiative for controlling black money in realty is to make government circle rates more then the prevailing market rates in the circle.

Most of the black money holders have huge amount of land banks in their names/driver's name etc. Thus putting a limit on private property possession to (500 sq yard max) is most important factor in preventing corruption. I dont know why government of India doesnot pass a bill which implements 'residential land for all'?

Putting a restriction of private property would also help in keeping real-estate prices in check as Real-estate prices escalate as politicians/bureaucrats/businessmen purchase insane amount of land bank in urban areas, thus creating an artificial boom(which Indian Realty market is currently into)

So what do you feel about this proposal/idea of 'Put Restriction(limit) on Private property', do leave a comment for a healthy conversation.