LONDON: Prominent nonresident Indian business in an ‘S’P Hinduja has suggested to the Shekhar government to impose a check on the practice of businessmen and industrialists making secret payments to political parties and thus stop “back room” deals in. India.
“A major factor in encouraging corruption is the practice whereby businessmen and industrialists are encouraged to make secret contributions to political party funds” and “the system of secret payments. Invariable makes the party and its office holders beholden, and opens. the way for many a back room deal”, Hinduja said in a statement issued here.
He said there can be no criticism of the individuals and organisations that make contributions. That is part of the normal democratic practice. But such contributions should be made in a manner that can be publicly scrutinized. As in other democratic countries, the accounts of the parties should be audited and made available to the general public, Hinduja said.
The government must define its broad economic policies, but it must not attempt to regulate, since that only opens the door to corruption, he said.
Hinduja said the government’s direct intervention in industry merely bloats the bureaucracy, encourages corruption and deadens entrepreneurial and professional drive. The bureaucratic maze and the proverbial Delhi red tape have frightened away numerous foreign investors, and thus lost India many opportunities for joint ventures, he said.
With the Gulf crisis, the flow of concessional credit to India is likely to become scarce. To maintain rapid economic growth, the government must respond by removing obstacles to participation in India’s industrial development by foreign investors and by Indians living abroad, Hinduja said.
Hinduja suggested there must be a return to principled policies, so that the popular crisis of confidence in our democratic institutions is restored. The government must get its priorities night: It should focus on the wellbeing of the people and not burden itself with the management of business and industries, he asked the new government.
Article extracted from this publication >> December 7, 1990
