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Of Drought & Inflation:CAN TH E NATION BE OPTIMISTC?, by Shivaji Sarkar,4 September 2009 Print E-mail

Economic Highlights

New Delhi, 4 September 2009

Of Drought & Inflation

CAN THE NATION BE OPTIMISTC?

By Shivaji Sarkar

The nation should not be “over pessimistic” despite the drought, Prime Minister Manmohan Singh told the Planning Commission’s first meeting after the new Government took over. But the Commission’s Deputy Chairman, Montek Singh Ahluwalia said almost the contrary: that the growth as recorded in the official documents of the first quarter is to gradually come down and pepper off in the last quarter.

Well, the Prime Minister is optimistic that since “our food stocks are very high” the consequences of drought could be managed. He obviously meant that the situation would not be too inflationary. However, only three days ago the Reserve Bank said the “spectre of inflation is expected to rear its head by the end of the current financial year, which could pose a major challenge”.

The apex bank explains that “deficient monsoon could affect the inflation outlook more than the growth prospects”. Further, easing the base-effect and possible strengthening of fuel and food prices would take inflation to high levels, which in turn would pose a threat to the process of economic revival.

The Prime Minister has the onerous task of keeping the nation’s morale high. Therefore, it is expected that his purpose was of presenting not so gloomy a picture. One only hopes that this nation is not following Queen Elizabeth II, who in July asked why nobody had predicted the great recession. She did not remember that dozens of economists and journalists had warned repeatedly that the world suffered from unsustainable asset bubbles, imbalances and debt.

In the case of India, we often try to ignore realities. Three days after the new trade policy was announced targeting $ 200 billion exports in 2010-11, the July exports fell by 28 per cent. Along with that came the news of a further fall in the US unemployment – an indication that the global economy is not doing well and the hope of growth in exports is more utopian.

Manmohan Singh expected that there would be a growth of 6.3 per cent as against what the RBI had repeatedly said “not more than 5.75 per cent”. The recent slowing down in the core sector industries comprising steel, cement, coal, electricity and oil to 1.8 per cent following a fall in production of steel products and petrol refinery, is a grim indicator that the nation might again slip off its growth target. The core sector accounts for close to 27 per cent of the total industrial production.

The electricity sector which continues to be a bottleneck registered a meager 3.3 per cent growth down from 4.5 per cent a year ago. The Confederation of Indian Industry (CII) has expressed concern that electricity generation and capacity increase has not matched the growth in demand. In the previous two Plans, the addition was much less than anticipated. The Eleventh Plan is also not expected to bridge the gap. In stark contrast China adds far more capacity every year.    

Records reveal that the steel industry merely managed to edge upwards with a 1.2 per cent growth compared to 6 per cent growth in July last year. Only cement and coal segments registered growth, with the former by 10.6 per cent up from 5.5 per cent in July 2008 and the latter segment expanded by 9.7 per cent. But it is too early to say whether this is indicator of any revival.

The manufacturing sector is also not doing well. The index of manufactured products rose by a mere 0.1 per cent and manufactured food products by 0.7 per cent. This is an indication that people are lacking in purchasing capacity owing to job losses, high cost of living and continuous pressure of sharp rise in food prices. Principal economist of Crisil DK Joshi says this will bring the wholesale price index (WPI) into the positive zone, from the present negative, within a month.

Apparently, Manmohan Singh has based his projections and optimism on a positive global growth. In contrast, the RBI cautions that if global growth revives, demand for food items and petroleum products too could rise and result in higher inflation. In addition, private players are too playing havoc with the prices and there is a trend of hoarding, other than poaching on the farmers. To counter this, the Government has raised the minimum support price of agri-commodities recently and is mulling to raise it further.

However, the RBI warns that this would belie what Prime Minister is expecting. Instead, it would further stoke inflation. In such a situation, the call of Manmohan Singh for a public private partnership (PPP) in the social sector --- health, education and urban development is also wrought with risk. And he too is aware of it and has thus cautioned the Plan panel that any initiative must not weaken the Government’s commitment of “inclusiveness”.

Truly, it is unfortunate that the private sector has not matured over the decades and continues to be focused only on exploitative profits. The Government needs to look at this aspect and should through various industry and trade chambers start a dialogue to educate the private sector on becoming a partner in a positive manner. Most PPPs, including those on the highways, are extremely expensive propositions, have been adding to inflationary trends and affecting the growth propositions.

Surprisingly, the Prime Minister did not speak on the high Government borrowings, though only a few days back Union Finance Minister Pranab Mukherjee had said it would not have any impact on interest rates or inflation. Once again the RBI has contradicted this view and expects the interest rates to harden. It is circumspect on the Rs 40,000 crore stimulus package the Government had announced. “If stimulus is sustained longer, the imbalances left in the system could create market-induced pressures, which may work against recovery,” warns the Central bank.

Clearly, the Government is passing through the most difficult economic phase. Keeping the nation’s morale high is a challenge in itself. But high food stocks unless used properly would not bring the prices down. With the projected 20 per cent fall in kharif production and another likely fall in the rabi output, it is expected that the Government would have difficulty in building up the food buffer next year. Though nobody wants to paint a gloomy future, the trends are nowhere near being optimistic. The nation may not be pessimistic as the Prime Minister says, but it has little for being optimistic. --INFA

 (Copyright, India News and Feature Alliance)

Hatoyama Victory:TIME TO PUSH INDO-JAPAN TIES, by Parama Sinhapalit, 5 September 2009 Print E-mail

Round The World

New Delhi, 5 September 2009 

Hatoyama Victory

TIME TO PUSH INDO-JAPAN TIES

By Parama Sinhapalit

School of International Studies, JNU

The 21st century seems to be ushering in many new international developments. First, it was the global financial crisis of 2008 that rocked the economy of the most powerful nation---the US, then the surprise win of the Congress party in India early 2009 and now the change of guard in Japan. All indicating the pace at which the world is transforming. The landslide victory of the Democratic Party of Japan (DPJ) on August 30, 2009 was a result of a massive protest vote against a worn-out, clique-ridden Liberal Democratic Party (LDP) that ruled Japan for over 50 years except for 11 months in 1997, when a non-LDP coalition ruled the country. 

Yukio Hatoyama, the President and one of the founders of the DPJ in 1996, has taken over as the new Prime Minister of Japan. At 62, the new leader faces many challenges including deflation, an increasing public debt and unemployment which has touched a record high. While revival of the Japanese economy might be the focus of the new Government in power, Hatomaya and his team also realize the need for transforming Japan from within. He has promised to reverse the process of over-centralisation of the Japanese government by transferring more power and funds to local authorities, breaking the nexus between the bureaucracy and the political rulers and pay direct greater attention to the problems of rural Japan.

While planning to strengthen the country internally, the Prime Minister also has plans for Japan internationally. Wanting Japan to be closer to Asia, Hatoyama has in an op-ed piece in the New York Times entitled “A New Path for Asia” revealed his vision of Asia's future. He visualizes Japan’s close partnership with China as the American economic and military influence wanes. While believing that the power of the US is on the decline, he still attaches considerable importance to the US-Japan alliance that will “continue to be the cornerstone of Japanese diplomatic policy”.

While articulating Tokyo’s penchant to move closer to Asia, one point Hatoyama however, seems to have missed out is the need for Japan to continue its growing partnership with India. Surprisingly, the election manifesto for the election was almost quiet on the issue despite the relationship going strong during the past few years.

While India-Japan ties have relatively a young history, the two countries have moved close to one another in the last couple of years. Japan has been one of India’s major trade partners as well as a key source of development assistance. During the past few decades, India-Japan relations have undergone both quantitative and qualitative changes. Economics has been the main driver of bilateral ties with cross-border trade and investment increasing sharply. The partnership is no more lop-sided and has both New Delhi and Tokyo looking for opportunities in each other’s country.

One of the recent initiative to strengthen the India-Japan partnership has been provided by Daiichi Sankyo’s acquisition of Ranbaxy, one of India’s leading pharmaceutical companies. The acquisition, while obtaining greater access in India’s huge pharmaceutical market, also marks the beginning of a deeper qualitative involvement of Japanese firms in scientific capacity-building.  It paves the way for utilization of India’s scientific talent in advanced pharmaceutical research under Japanese supervision. More investments of similar nature will expand economic space for both countries by creating opportunities for utilizing their demographic and skill complementarities.

The India-Japan collaboration is seen in many other areas as well. Japan is playing a key role in establishing a new Indian Institute of Technology (IIT) and is also actively collaborating in developing an Indian Institute of Information Technology, Design and Manufacturing at Jabalpur in Madhya Pradesh, one of India’s largest and relatively economically backward States. The upcoming institute can make a significant difference to development of the State’s human resources and prospects for future growth.

Japan’s penetration into India is indeed note-worthy. Another leading Japanese firm DoCoMo, has acquired 26 per cent equity in Tata Telecom, a major Indian telecommunication service provider. This provides DoCoMo a foothold in the world’s second largest mobile phone market after China with an estimated customer base of 100-110 million. Establishment of India’s first exclusive Industrial Park for Japanese firms in Rajasthan is another example of both countries attempting to harness India’s advantages as an investment location for mutual benefits. Japan’s Daikin Industries Ltd, along with five other companies, is involved. The project underscores New Delhi’s faith and confidence in Japanese enterprise and capabilities and the virtuous role that the latter can play in India’s industrial growth.

Likewise, Indian companies too have begun investing in Japan. This is part of a larger trend reflecting sharp acceleration in outward FDI from India. Outward FDI from India has increased from US$1.5 million in 2003-04 to US$17.4 million in 2007-08. Indian FDI inflows into Japan are mostly in IT and software.

While economics has been going strong between the two countries, India and Japan also appreciate each other’s geo-political significance in the Asian region while sharing common concerns. All these imperatives have been instrumental in elevating India-Japan relations to a new level of partnership based on shared interests and challenges. Both New Delhi and Tokyo are collaborating within the East Asia Summit (EAS), an effective forum for articulating Asia’s views and projecting its strategic interests. Due to its inclusivity and the potential to provide global risk diversification to members, there is a strong case for EAS continuing to function as a key forum for articulating Asia’s views to the rest of the world.

Japan has been actively supporting greater Asian economic integration as is evident from its proposing the ‘Comprehensive Economic Partnership in East Asia’ at the 13th Consultations between ASEAN Economic Ministers and the Minister of Economy, Trade and Industry of Japan (AEM-METI). This initiative, under the aegis of EAS, covers several key issues such as trade in goods and services, cross-border investment and intellectual property and aims to strengthen regional competitiveness by promoting growth of efficient production networks. India is also committed to this initiative launched by Japan.

The Joint Declaration for Security Cooperation entered into by the two countries in October 2008 marks a milestone in bilateral ties. Japan has similar security cooperation arrangements only with the US and Australia. India’s entry in Japan’s core group of allies underlines the critical significance it has acquired in Tokyo’s strategic perception of the Asia-Pacific. The declaration focuses on a variety of areas for cooperation which include joint military exercises, disaster management and counter-terrorism. In order to deepen security cooperation, New Delhi and Tokyo have also agreed on expanded collaboration between the Indian Space Research Organization (ISRO) and the Japan Aerospace Exploration Agency (JAXA) in disaster management.

The list of cooperation between the two countries is thus endless. The ties have been strengthening. With new dynamics at play in the 21st century, it is quite possible that the relations between the two Asian players will continue to improve. However, till now there has been no signal from the new Hatoyama Government that moving closer to India is amongst its top priorities. ---INFA

(Copyright, India News and Feature Alliance)

 

LOVE IN TIMES OF GLOBAL WARMING, by Nelofar Currimboy,1 September 2009, Print E-mail

SUNDAY SHORT STORY

New Delhi, 1 September 2009

                

LOVE IN TIMES OF GLOBAL WARMING

By Nelofar Currimboy

‘Dear Mum n Papa,

Since it’s clear that you are never going to let us marry, Saif and I have decided to end our lives together by drowning at Surajkund, Haryana. Please don’t try to find us. Love Nisha.’

After sealing the envelop, Nisha tiptoed to the living room and left it in a prominent place. Before walking out she stopped to check her make-up before the mirror. After all, the media would swoop down to cover the tragedy, and her face would be in every city paper. Dead or alive, she would hate to be seen looking any less than smashing.

She heard Saif revving up the engine of his Harley Davidson mobike and jumped onto the pillion seat, her long hair flying with the wind dramatically. “Nisha darling,” said Saif apologetically “you are choking my lungs. Can you loosen your grip please”? “How rude of you. Do you know what I feel at this moment, besides we will both be dead in a few minutes and you are worried about your lungs”, shot back Nisha. “Okay girl but I need to breath to ride this bike, so why don’t I sit behind and choke you and you try doing this.”

Nisha was looking upset but what’s a little tiff between lovers, she thought with a smile. The bike took the steep incline to the ancient Surajkund water reservoir and slowed down on the rugged steps. Holding hands they walked down the jagged steps. “I am keeping my eyes closed Saif,” whispered Nisha. “I want you to lead me till we are at the edge of the water.” Her feet were searching out every step while Saif was staring down. “Nisha", he screamed. “What”, she said opening her eyes. “There is no water at all.” They looked down at a pit of hot earth. “Oh no”! Now how do we drown,” she asked.     

“Well dear this was all your idea,” replied Saif. “Mine?” “Didn’t you say you wanted to die in a place that was rich in history,” he added. Nisha started sobbing. “I can’t go home and tell my parents that we’ve postponed our plans for tomorrow.” “Don’t worry baby, just trust me, and get on the bike.” Nisha climbed on meekly. “Where are we going now,” she asked. “About half an hour down this road is Badkal Lake, remember.” “Oh yes I do, that’s even better than Surajkund, that’s the place we went boating on our second date,” said Nisha excitedly. “You got it girl,” replied Saif.

But he hadn’t bargained for the long winding road with its steep inclines and dips, and that Nisha was prone to bouts of motion sickness. When he first heard a gurgling sound he thought it was his Harley Davidson protesting about the desi road, till he felt something wet on his shoulder and a huge glass of curdled milk dripped down the front of his shirt. “What’s this", he screamed stopping the bike on the muddy edge of a cliff.  "I am sick, can't you see .I wanted to die not be tortured before dying". "Trust me", said Saif trying to pacify Nisha. "Trust you, did you say trust you, you can’t find a drop of water for us to drown in, in this whole country and I should trust you,” she angrily replied.

He pulled off her Louis Vuitton scarf and wiped her face and clothes, then he took off his shirt and threw it to the side with the scarf. “Do you know what you just did?” “What,” said a confused Saif. “You just threw away my LV scarf. It cost me Rs 20,000 and besides it’s sacred.” “Come on girl stop getting hysterical, it would have sunk in the water in any case.” “Saif you don’t understand, that was a sacred way for it to go, that's how it deserved to go. It’s an LV.” “Get on,” said an irritated Saif cutting her LV commiserations short.

The last lap of the ride to Badkal Lake was in complete silence and as the mobike reached the edge of the bandh wall there was a heavy air between the two. The checkpost policeman let them pass as a romancing couple. ‘Can I have my last diet coke, Saif?” “Sure, and I will have my last Marlborough light,” he replied. They sat on the steps leading up to the reservoir and for a moment it seemed the plan was back in place and so was the mood. “Okay now girl are you ready?” “I am”, she whispered with a dramatic tone to her voice. “Then hold my hand tight as we go up the steps.” “I want to shut my eyes and chant,” said Nisha. She could hear him chanting the name of his God too, and she knew this was the perfect end to their love story.

"Nisha open your eyes,” he screamed pointing to the cracked dry and muddy expanse where once there was a water bed. “Oh my God,” she shouted, “what are you doing to my life, I mean my death. Is this some kind of a prank?” “No Nisha, no trust me, I had no idea that Badkal Lake was a dry pit now. I mean who would ever imagine.” Saif’s mind was racing for options. His shirtless chest freezing in the morning chill didn’t help matters either.

“I know just the place,” he remarked. “Sorry, this time I need to know the plan,” Nisha retorted. “Just 20 minutes down this road is the Dhauj Lake, remember in the tenth class we had gone on this trek in the Aravali Hills and sat on a beautiful river bed,” mumbled Saif tripping over his words. “Okay, scream”, said Nisha looking clearly exhausted. The ride to Dhauj was bumpy and the pit holes that appeared every few seconds left the Harley Davidson groaning. Finally they reached the Aravali Hills. Climbing up the two hundred steps holding hands, the lovers felt suitably tortured by the world.

“It was every bit worth it. This is the most amazing place to depart the world from,” said Nisha. She had barely finished her sentence when the sight of baked earth stung her eyes. “You idiot,” she screamed at Saif. “Look at that.” Saif looked down in horror at the dry arid waterbed with stray shrubs growing. “There,” he pointed out at what seemed like a mirage, ‘there seems to be some water there.” “It’s a puddle, it won’t even drown my heels,” yelled Nisha. “Look Nisha this is not my fault.” “Oh yes it is, you are the man, you are the one who takes care of everything,” she angrily asserted. “I had suggested the Yamuna, but you wanted a place with some history,” argued Saif bounding down the steps with Nisha following, her stilettos in her hands and tears of frustration rolling down her face.

A bunch of village boys welcomed them with claps, and then one of them took out a sling and hit the front tire of the Harley Davidson with a sharp stone. “You rascal, I’ll get you,” said Saif darting towards the kids. Almost on cue, a mule cart appeared. “You want a ride,” asked the man pulling the animal to a side. “Your fancy bike won’t get you anywhere now.” Saif looked on in frustration even as Nisha's voice had become a cacophonic sound of anger by now. A few boys were loading his bike on the cart. “Where to,” asked one of them. “‘Drop us to a petrol pump on the main road,” said Saif avoiding thinking of his next move.

Holding the Harley Davidson the two defeated lovers sat in the mule cart --- on a journey they could never have imagined. It was dusk by now and the sun was setting. Suddenly, the headlights of a Mercedes were shining in their eyes and waiving at the cart to stop. Out jumped Nisha’s parents, grandmother and sister. “Nisha darling, thank God,” they said hugging her. “We will be more than happy if you marry Saif,” they chorused. “What marry this nincompoop! Never,” replied Nisha. As her completely confused parents stared at her, a shirtless Saif looked on. ---- INFA

(The writer runs a cosmetics firm, is a poet and has written a book on her mother Shahnaz Husain. She has created marquee products like Shahnaz Herbal's Gold Gel, Pearl and Flower range.) 

(Copyright India News & Feature Alliance)

                                   

 

 

Pak Modifies US Missiles:EYES INDIA, NOT TALIBAN AS THREAT, by Monish Tourangbam,1 September 2009 Print E-mail

Round The World

New Delhi, 1 September 2009

Pak Modifies US Missiles

EYES INDIA, NOT TALIBAN AS THREAT

By Monish Tourangbam

Research Scholar, School of International Studies, JNU

Pakistan attracts attention yet again for its notoriety. According to a New York Times report, both Obama’s senior administration and the US Congressional officials have accused Pakistan of illegally modifying American-made missiles sold for defence purposes. Alarm bells are ringing in New Delhi after this reported military adventurism by Pakistan is largely seen as being directed against India.

The fresh accusation is based on the nature of a suspicious missile test Pakistan conducted on April 23 this year. Islamabad has modified the US supplied Harpoon anti-ship missile to hit land-based targets. The news comes at a crucial period when Islamabad is struggling to maintain stability and continues to ask the Obama administration for increased economic and military assistance. The aid is largely sanctioned as a means to support Pakistan’s fight against terrorism.

However, Islamabad has time and again used the aid, meant for civilian purposes to bolster its military infrastructure. Despite its stated war against terrorism and military operations in the Swat valley, Pakistan’s obsession with India as a threat to its existence holds sway. The recent report may trigger an intense round of arguments and counter-arguments by the US and Pakistan.

According to American officials, the changes are a violation of the US Arms Control Export Act. Since the modifications seem to have been done with India as a target in mind, the near future might not be very bright in terms of India-Pakistan composite dialogue. Moreover, the barrage of domestic criticism that the Manmmohan Singh administration faced after the joint statement at Sharm-el-Sheikh, seems to have hardened New Delhi’s position against Pakistan.

A domestic outcry was witnessed against the UPA Government for being soft on Islamabad’s accusations of New Delhi’s interference in Balochistan. This led to India insisting on Pakistan to take serious and sincere actions against the terror operations being hatched on its soil, particularly Hafiz Saeed, the Jamaat-ud Dawa (JuD) chief and mastermind behind the Mumbai attacks. However, with the Lahore High Court ordering the release of Saeed, matters reached a dead-end.

Worse, Pakistan’s Interior Minister Rehman Malik in a flimsy counter-attack based on half-witted reasoning, said that the 26/11 attacks could have been averted had Islamabad got information from New Delhi. But the basic question should be: Is it Delhi or Islamabad that should be forwarding information in case a plan to attack was being hatched in Pakistan? In all this mess, the only silver lining for India has been its success in convincing the Interpol to issue a red corner notice against Saeed.

The latest accusation against Islamabad for tampering with US missiles comes at a critical time when the Obama administration is asking Congress to approve $7.5 billion in aid to Pakistan over the next five years. At the same time, the Obama administration is pressing a reluctant Pakistani military to focus its efforts on fighting the Taliban rather than expanding its nuclear and conventional forces aimed at India.

The latest dispute, according to American officials, is over a conventional weapon, modified from the Harpoon anti-ship missiles that were sold to Pakistan by the Reagan administration as a defensive weapon during the cold war. Nevertheless, the accusations implicitly point to the growing concern in Washington over the speed with which Pakistan is developing new generations of both conventional and nuclear weapons. Analysts believe that Pakistan’s nuclear arsenal is expanding and being developed in a pace unseen in other countries. In May this year, Pakistan conducted a test firing of its Babur medium-range cruise missile, a weapon that military experts say could potentially be tipped with a nuclear warhead.

Further, huge investments are being pumped into the development of conventional weapons which have no utility in fighting terrorism. The presumed threat from India has been a permanent factor in the formulation of Pakistan’s foreign and security policy since inception. In view of the above, many are critical of the huge aid package being proposed by the Obama administration. The critics are worried about the aid money being misdirected toward furthering the confrontationist posture toward India.

Undeniably, Pakistan has been waging a half-hearted fight against many extremist groups that it had helped breed and nurture. Thus, the critics of the aid package have asked the US Congress to be cautious and objectively view the situation before passing it forward. In another notorious but not a surprising move, a Pakistan court recently ordered the government to lift any remaining restrictions on Abdul Qadeer Khan, the Pakistani scientist who is accused to have spread nuclear technology to Iran, North Korea and Libya.

Clearly, this is a slap in the face of the United States and the international community. A.Q. Khan is still regarded as one of the principle challenges to non-proliferation goals. He is believed to be holding many secrets that could connect the dots and the Is to get a complete picture of the international nuclear black market. If the US is keen to make its proliferation goals more legitimate in the eyes of other nations, then it has to take action and not turn a blind eye to misdeeds of Pakistan-- an ally in the Afghan war.

Apparently, the charge regarding the missiles’ modification was made in an unpublicized diplomatic protest in late June to Prime Minister Yusuf Raza Gilani and other top Pakistani officials. Citing another violation of its law, the US has also accused Islamabad of modifying American-made P-3C Orion reconnaissance aircraft for land-attack missions. Obviously, Islamabad has denied any such tampering with American-made weapons and reportedly invited US officials to visit and clear their doubts.

Speaking anonymously,  an official said the American accusation was “incorrect,” and that the missile tested was developed by Pakistan, just as it had modified North Korean designs to build a range of land-based missiles that could strike India. Notwithstanding the alleged origin of the weapon in dispute, the crux of the argument is that Pakistan is indeed investing heavily to develop military infrastructure which can only be explained as directed toward India. The weapon in question would highly enhance the striking capability of the Pakistani navy on land- based targets in India.

This is happening at a time when Pakistan’s primary challenge is to fight terrorism on its own soil and not an illusive threat from India. The rapid rise of the Taliban and its spreading tentacles is what Islamabad should be most concerned about. Hence, it is high time that the Pakistani establishment concentrates on keeping its house in order rather than waste crucial aid money on military infrastructure to provoke India.---INFA

(Copyright, India News and Feature Alliance)

 

 

Judges’ Assets:LIFTING VEIL ON JUSTICE, by Poonam I Kaushish, 5 September 2009 Print E-mail

POLITICAL DIARY

New Delhi, 5 September 2009

Judges’ Assets

LIFTING VEIL ON JUSTICE

By Poonam I Kaushish

Three cheers to Delhi High Court judge Ravindra Bhatt. In a brilliant judgment he turned turtle the belief that ‘Your Lordship’s” were infallible and asserted that all power, including judicial power, is accountable to the highest law of the land — the Constitution. Thus, in one fell stroke he not only brought the Justices down from their high judicial pedestal on level with the “little man” but also ushered in a new chapter of accountability in the judiciary thereby hoping to restore the faith of the public in the judiciary.

In his 72-page judgment Bhatt said: “All powers, and judicial power being no exception, is held accountable in a modern Constitution. Holders of power are expected to live by the standards they set, interpret or enforce, at least to the extent their office demands. Judging is not a job, it is a way of life. Wherever I enter the court room, I do so with the deep sense that, as I sit at trial, I stand on trial.”

The landmark order was pursuant the Supreme Court appeal to the Delhi High Court against the Central Information Commissioner (CIC) order that the Chief Justice of India (CJI) should make public judges’ assets, following a request by an activist under the Right To Information Act. Justice Bhatt was all for  transparency and accountability in higher judiciary, by stating that the CJI was a "public authority" under the RTI and had to make public the information on assets declared to him by judges.

“Declaration of assets by SC judges is information under Section 2 (f) of the RTI Act." The Act, he emphasized was “enacted to arm citizens with the mechanism to scrutinize Government and public processes and ensure transparency.It would be "highly anomalous to say that judges have no obligation to disclose their personal assets as standards of disclosure for the legislators, parliamentarians and administrators were set by a Supreme Court order.”

Describing his “humbling experience” and transparency as a "powerful beacon", Justice Bhatt disagreed with the CJI Balakrishanan’s contention that the Apex Court’s 1997 resolution of giving “personal information” was “voluntary and confidential”, a mere moral duty and not a legal obligation inviting sanctions in case of non-compliance. He was firm in his view that in the exercise of the legitimate jurisdiction to impact people’s lives, property, liberties and individual freedoms, judges have an obligation to disclose their personal assets to someone or an authority. “The judge, the verdict aid, was a casual law-maker, just filling in the gaps,” he added. 

Rejecting the Apex Court’s stand that the CJI held the asset declarations in a fiduciary (held in trust) capacity and disclosing it would amount to breach of trust, the High Court held that the argument was without substance, and said the CJI does not hold such declarations in a fiduciary capacity or relationship. However, Bhat made a concession. He suggested that the CJI could evolve some uniform standards and modalities for declaration of assets by judges to bring in clarity.

Be that as it may, some legal luminaries still harbour reservations, given that the disclosure might embolden ‘dissatisfied’ and unscrupulous lawyers-litigants to abuse and raise questions about the judges’ wealth and compromise the independence of the judiciary.

Imagine a judge enquiring into allegations of disproportionate wealth of a ‘corrupt’ neta or babu wherein during the proceedings, the petitioner could ask the judge, “Before questioning me about my wealth, first explain how you obtained yours?” Also picture: A litigant accuses a judge of passing a judgment for monetary considerations and claims that the assets declared are forged and under valued. What then? Is the judge going to concentrate on the cases before him or explain his integrity?

However, many commend Justice Bhatt’s order. They argue that transparency and accountability is the only way forward given allegations of the enormous increase in corruption and misconduct of judges due to the lack of accountability, specially in the lower level of judiciary. No doubt that there could be frivolous petitions. Some to even pressurise the judiciary. But those would be successful only if the judiciary has something to hide!

Arguably, if wealth has been acquired honestly why would a litigant resort to such low tactics and why should any member of the judiciary have fear? After all, aren’t judges expected to dispense justice without fear or favour? Can fear of threats become the raison d atre for lack of transparency. Remember, the judiciary, like Caesar’s wife, must not only be above suspicion, but must also be seen to be so.

In fact, in many countries personal disclosures are mandatory. The American 'Ethics of Government Act of 1978' requires that federal judges disclose the source and amount of personal and financial information other than that earned as employees of the US government each year. They must also reveal from where and whom, description and value of gifts for which the aggregate value was more than a certain minimal amount received from a source other than a relative. South Korea, Latvia and Mongolia have similar legal provisions making it mandatory for wealth declaration.

To access information in the US, a person has to submit a written application to access a copy of the declaration of assets while in Mongolia, the information is published in the government news magazine and placed on the internet. In addition to examination by a public ethics committee, South Korea mandates that property declarations be published in a public bulletin within a month of submission.

South Africa enacted a law in 2008 that requires judges to submit their 'registrable interests' to a custodian that is responsible for auditing the declarations. In Philippines, wealth declaration cannot be used for commercial purposes though inspection is allowed and contents can be published in media while in Russia, the information must be published within a week.

Sadly, the Indian judiciary enjoys the opaqueness of the iron curtain. As former Chief Justice Bharucha remarked judges are mere mortals given to temptations. According to him 20% of the judiciary was reportedly ‘corrupt’. Recall, the UP crisis in 2007 when the nation reeled under news that a Supreme Court judge, High Court and District judges had received benefits from siphoned off employee funds. What to speak of last year’s corruption case of mistaken identity that rocked the Punjab & Haryana High Court. Wherein Rs 15 lakhs was paid to the wrong judge! Instead of Nirmal Yadav to Nirmaljit Kaur for a land deal. The CBI recommended prosecution but nothing came of it.

In 2002 too, the then Chief Justice Sahariya report deprecated the conduct of Mehtab Singh Gill. And again in April 2006 the State Vigilance Department Court taped a conversation between the judge and some citizens. Earlier, three judges were taken off work. One was asked to proceed on leave before retirement, the second was absolved and the third was Gill again. The result? Zilch. In 2003 Delhi Court judge Shamit Mukherjee resigned over his alleged complicity in a DDA scam.

Questionably, not only judges, it is high time that the Executive must also be brought under the public scanner. All IAS and IPS too should come forward to declare details, either in their departments or in a national directory specially created for the purpose. We can no longer pretend that corruption does not exist. It does.

In sum, the judges cannot hide behind the iron curtain and demand immunity. After all, immunity leads to impunity. They need to remember that the Lady of Justice is blindfolded but her scales of justice are equal for all. Et tu Your Lordships? ---- INFA

(Copyright India News & Feature Alliance)

 

 

 

 

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