Will India’s “Culture of Immunity” end? (PO)

M D Nalapat

While politicians in India often talk about the prevalence of the “black” ( ie illegal) economy in India, especially when they are in opposition and not accessing the vast funds they used to get while in power, the reality is that the root of “black money” in India is politics. While a Mahatma Gandhi was able to persuade tens of millions of Indians to sacrifice their jobs and their fortunes to follow him in his numerous jabs against British rule,since the 1970s, those in politics expect to get compensated for their efforts,and the higher the loot,the more the rush to get on board a particular bandwagon. In urban areas,unless at least Rs 500 is paid to an individual, she or he will refuse to attend a political rally. A few months ago, two politicians in Maharashtra were discussing before an open microphone the high cost of arranging crowds to cheer Congress President Sonia Gandhi. Huge sums were mentioned in this connection,it being a given that a Sonia rally has to have tens of thousands of attendees, so that television cameras could pan the throng and give testimony to the immense popularity of the current owner of the Congress Party. That the crowds shown on television are usually expressionless - if not openly bored and fidgety - seldom gets mentioned in the media, which hungers for the access only favourable coverage assures.

Why should a democracy block Islamic banking? (PO)

M D Nalapat

Although efforts have been made over the past twenty years to bring Islamic banking into India — a country that has more Muslims than Pakistan — as yet the Reserve Bank of India and its master, the Union Finance Ministry, has not given permission for the same. The reason is simple. Across the financial establishment in India, the influence of US and EU financial interests is overpowering. Several senior civil servants have their close relatives working in such institutions, and therefore accept the advice given by them. Certainly, banks in foreign countries will not want the Indian government to clear the way for the establishment of Islamic banking centres, for that may result in funds flowing from Zurich, London, Frankfurt and New York (all major “Islamic” banking locations) to Mumbai or Kochi. Acting on cue, the monetary and finance authorities in India have continued to block access to Islamic banking avenues, thereby denying millions of observant Muslims in India a chance to keep their assets in safety.

As has been mentioned earlier in these columns, the “British” law that boosters of the Nehru family such as Amartya Sen and Sunil Khilnani are so proud of pointing to is in reality English law for colonial subjects, a construct very different from English law for Englishmen. The laws in India give overwhelming powers to the administrative machinery, and no redress to the citizen except through the goodwill of some other governmental agency.Over time, the duration of cases in India has lengthened in a way calculated to resemble the “yugas” of the ancient Indian epics (each of which lasts millions of years). Many civil cases take sixty to ninety years to finally get decided, while in a criminal matter, the final verdict usually comes after the convict has passed away due to old age. Days ago, there was a “superfast” judgment delivered in a Karnataka court against an individual accused of the murder of a software company employee. The time taken was five years, and this is only the first stage. Even at such a “superfast” pace, the appeals process can drag on for fifteen or more years before conclusion. India’s judicial system is now internationally known for the frequency of “stay orders” and the length of time that it takes for verdicts to get delivered.