Political Diary

New Delhi, 19 September 2018

Neta + Industrialist = Crony Bhaichara 

BUDDY BUSINESS OF QUID PRO QOU

By Poonam I Kaushish

This is a sordid but juicy saga of hedonistic crony capitalism and corrupt netas which played out on India’s political theatre last week. Of a political war of words over absconding ‘King of Good Times’ Kingfisher airline Vijay Mallya’s claim that he “had met Finance Minister Jaitley” before leaving India on 2 March 2016 to settle his Rs 9000 crores bank loans. The Congress reiterated this and queried why the CBI changed his “detain” notice to “inform” at airports thereby enabling him to leave the country. Predictably, the Government accused both of “lying” to cover up their “own sins” in the case. Welcome to 21^st century desh ki rajniti: Of quid-pro-quos and you-scratch-my-back-I-scratch-yours, yaar!

Undeniably, Mallya has become the poster boy of bank default and Prime Minister Modi’s pledge to bring ‘the swindlers to book.” Sure its public money and he should damn well pay it back. Like others of his ilk. Be it jeweller Nirav Modi and uncle Mehul Choksi of Rs 13,0000 crores bank default. But when one delves deep into Mallyagate one realizes how deep the rot of crony capitalism is.

Consider both Congress and BJP helped Mallya become a Rajya Sabha MP: Congress with JD(S) in 2002 and BJP with JD(S) in 2010. In Nirav Modi’s case the loans were given in Congress-led UPA rule and he fled the country January during BJP-led NDA Government era.  A classic case of the pot calling the kettle black. Confessed a seasoned politician: Is hamam me hum sab nange hain!

Recall, Union Highway Minister Gadhkari cruising on the Ruia’s of Essar fame yatch in the South of France three years ago along-with others using ‘industrialists friends’ company jets, lavish homes for personal pleasure and financing their off-springs shaadis. Consequently, company accounts are fudged to feed the voracious appetite of their political and Governmental mai-baaps.

In fact, a surfeit of classic illustrations of crony capitalism abound. From the 2G spectrum scam, Adarsh Housing Society scandal, Coalgate wherein coal blocks were given to families and friends of UPA Ministers, Congress and its allies MPs’ or people close to the Party. Congress ex MPs-industrialist Navin Jindal and Vijay Darda who both grabbed coal blocks as did former RJD’s Union Corporate Affairs Minister PC Gupta's sons. And the infamous Nira Radia tapes encompassing industrialists, media, netagan, babudom et al.

Today we live in an era, where public morality and practical politics has acquired a particularly grotesque dimension whereby India has become a ‘democracy of concessions’ or ‘concessions of State power.’ Bluntly, corrupt and venal politicians  help cronies through the “politics of direct sale”, wherein tax payers money is squandered on friends by surreptitiously telling public sector banks to ‘loan’ people’s funds without verifying how the borrower will return the money. In return the crooked neta gets the businessman to provide the funds that allow him to fight elections.

Call it plutocracy (rule by wealth) or kleptocracy (rule by theft) either which way  netas of all shapes and sizes, hues and colours, communal and secular flock together collectively cooing there’s  nothing’s wrong. Alas, today bribing bureaucrats is de rigueur wherein instead of success being determined by the rule of law, a businessman’s success is dependent on the favoritism that is shown to him by the Government. A powerful trickle down effect where the lowliest rural officials and policemen expect their palms greased just to do their jobs. With the winner taking it all!

The fiddle is in the process Crony capitalism operates at three different levels. First you get a Minister, babu, bank Chairman/director and officials to give you monies to ensure that you don’t have to put your own money. Thus, you borrow heavily from banks with very little of your own equity. So even if your venture sinks, it is the banks which lose money.

Two, one ensures that rivals do not get similar favours. Bluntly, you lobby not only for yourself, but also push against competitors. Lastly, in regulated industries like aviation, besides politicians one has to ‘manage’ ex-bureaucrats manning regulatory agencies.

Shockingly, India ranks at the 9th position in the index of crony-capitalism according to an Oxfam India’s report. The total wealth of Indian billionaires is 15% of the GDP, thanks to ‘bhaichara’ and lopsided policies to favour  friends of successive Governments. Bringing things to such a pass that we are at a stage where we can no longer look the other way on Ponzi schemes

This apart, a new cronyism has made its debut in the ‘Hindutva era’: Our New Age Babas who fancy the trappings of power and status of our political Gods. They revel in playing footsie, or is it the other way around, with them. This crony synergy between the Godmen and State is most evident in the way Baba Ramdev is treated. From being provided Z-plus security to having the State-owned Central Industrial Security Force guarding his business conglomerate Patanjali is symbolic of the creeping phenomenon of crony Babaism.

What next? Time we put in place a clear and transparent regulatory framework and stop crony capitalism riding roughshod over bona fide businessman. Our netagan need to cry a halt to political cronyism wherein it spills over into the business world; self-serving friendships and family ties. Corrupting public-serving economic and political ideals.

We need to cry a halt to increasing degradation by conducing our own due diligence, else we lay the foundation for a weak and pliable polity. An effective vetting process of the real chaal, charitra & chehra of our leaders.  Think. If individuals behave irresponsibly, it is impossible for them to establish a responsible society. Without a responsible society, there cannot be a responsible State. 

Kudos to the Supreme Court which recently called for a halt to the hedonistic splurging of public wealth by Indian billionaires and rapped the RBI on its knuckles for being lax in its monitoring of banks. It has asked the Central Bank to provide a list of defaulters who owe public sector banks over Rs 500 crores. 

Time now for ‘we the people’ to take the bull by the horns and treat this cancer afflicting our democracy from the panchayat to the Central Government. We should throw out our petty-power-at-all-cost leaders and rectify the perilous implications of crony capitalism destroying institutions. When leaders become partners and the corrupt investigate the corrupt and absolve the corrupt of being corrupt who will judge the guilty?

In the ultimate, we have elected them to rule and govern. Our netas need to desist from becoming surreptitious businessmen. Given that when an undataa becomes a vyapari , the aam aadmi  is bound to become garib!  Our rulers need to remember a home-truth: Public accountability is indispensable in a democratic set-up. With power comes responsibility.

Clearly, Modi has to cleanse the rot in the political backyard and stop banking on our leaders’ self-proclaimed honesty and morality. Let the people squeeze the last drop of their “safedi ka chamatkar” to rid the polity of its increasing fifty and dirt. It remains to be seen if NaMo will walk his talk of cleaning India of sleaze not only refuse. We need to expose the private mukhota of the public chehra.Remember when truth becomes a casualty one ends up with only babble and bluster. What gives? ---- INFA

(Copyright, India News & Feature Alliance)