My Quora Answer to: How can I sue a doctor in India for medical negligence?

Read the following paragraphs from the Supreme Court Judgment, before taking a decision of suing the doctor.

94. On scrutiny of the leading cases of medical negligence both in our country and other countries specially United Kingdom, some basic principles emerge in dealing with the cases of medical negligence. While deciding whether the medical professional is guilty of medical negligence following well known principles must be kept in view:-

I. Negligence is the breach of a duty exercised by omission to do something which a reasonable man, guided by those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable man would not do.

II. Negligence is an essential ingredient of the offence. The negligence to be established by the prosecution must be culpable or gross and not the negligence merely based upon an error of judgment.

III. The medical professional is expected to bring a reasonable degree of skill and knowledge and must exercise a reasonable degree of care. Neither the very highest nor a very low degree of care and competence judged in the light of the particular circumstances of each case is what the law requires.

IV.    A medical practitioner would be liable only where his conduct fell below that of the standards of a reasonably competent practitioner in his field.
 

V. In the realm of diagnosis and treatment there is scope for genuine difference of opinion and one professional doctor is clearly not negligent merely because his conclusion differs from that of other professional doctor.

VI. The medical professional is often called upon to adopt a procedure which involves higher element of risk, but which he honestly believes as providing greater chances of success for the patient rather than a procedure involving lesser risk but higher chances of failure. Just because a professional looking to the gravity of illness has taken higher element of risk to redeem the patient out of his/her suffering which did not yield the desired result may not amount to negligence.

VII. Negligence cannot be attributed to a doctor so long as he performs his duties with reasonable skill and competence. Merely because the doctor chooses one course of action in preference to the other one available, he would not be liable if the course of action chosen by him was acceptable to the medical profession. VIII. It would not be conducive to the efficiency of the medical profession if no Doctor could administer medicine without a halter round his neck.

IX. It is our bounden duty and obligation of the civil society to ensure that the medical professionals are not unnecessary harassed or humiliated so that they can perform their professional duties without fear and apprehension.

X. The medical practitioners at times also have to be saved from such a class of complainants who use criminal process as a tool for pressurizing the medical professionals/hospitals particularly private hospitals or clinics for extracting uncalled for compensation. Such malicious proceedings deserve to be discarded against the medical practitioners. XI. The medical professionals are entitled to get protection so long as they perform their duties with reasonable skill and competence and in the interest of the patients. The interest and welfare of the patients have to be paramount for the medical professionals.

95. In our considered view, the aforementioned principles must be kept in view while deciding the cases of medical negligence. We should not be understood to have held that doctors can never be prosecuted for medical negligence. As long as the doctors have performed their duties and exercised an ordinary degree of professional skill and competence, they cannot be held guilty of medical negligence. It is imperative that the doctors must be able to perform their professional duties with free mind.

Source: Supreme Court of India : Kusum Sharma & Ors vs Batra Hospital &Med.Research ... on 10 February, 2010 Bench: Justices Dalveer Bhandari, Harjit Singh Bedi

And again, in the Judgment - Supreme Court of India - Nizam'S Institute Of Medical ... vs Prasanth S.Dhananka & Ors on 14 May, 2009 Bench: Justices B.N. Agrawal, Harjit Singh Bedi, G.S. Singhvi

(2) Negligence in the context of the medical profession necessarily calls for a treatment with a difference. To infer rashness or negligence on the part of a professional, in particular a doctor, additional considerations apply. A case of occupational negligence is different from one of professional negligence. A simple lack of care, an error of judgment or an accident, is not proof of negligence on the part of a medical professional. So long as a doctor follows a practice acceptable to the medical profession of that day, he cannot be held liable for negligence merely because a better alternative course or method of treatment was also available or simply because a more skilled doctor would not have chosen to follow or resort to that practice or procedure which the accused followed. When it comes to the failure of taking precautions, what has to be seen is whether those precautions were taken which the ordinary experience of men has found to be sufficient; a failure to use special or extraordinary precautions which might have prevented the particular happening cannot be the standard for judging the alleged negligence. So also, the standard of care, while assessing the practice as adopted, is judged in the light of knowledge available at the time of the incident, and not at the date of trial. Similarly, when the charge of negligence arises out of failure to use some particular equipment, the charge would fail if the equipment was not generally available at that particular time (that is, the time of the incident) at which it is suggested it should have been used.

(3) A professional may be held liable for negligence on one of the two findings: either he was not possessed of the requisite skill which he professed to have possessed, or, he did not exercise, with reasonable competence in the given case, the skill which he did possess. The standard to be applied for judging, whether the person charged has been negligent or not, would be that of an ordinary competent person exercising ordinary skill in that profession. It is not possible for every professional to possess the highest level of expertise or skills in that branch which he practices. A highly skilled professional may be possessed of better qualities, but that cannot be made the basis or the yardstick for judging the performance of the professional proceeded against on indictment of negligence.

(4) The test for determining medical negligence as laid down in Bolam case (1957) 2 All ER 118 (QBD)holds good in its applicability in India.

Further in the same case as above,

32. We are also cognizant of the fact that in a case involving medical negligence, once the initial burden has been discharged by the complainant by making out a case of negligence on the part of the hospital or the doctor concerned, the onus then shifts on to the hospital or to the attending doctors and it is for the hospital to satisfy the Court that there was no lack of care or diligence. In Savita Garg (Smt.)vs. Director, National Heart Institute (2004) 8 SCC 56 it has been observed as under:

"Once an allegation is made that the patient was admitted in a particular hospital and evidence is produced to satisfy that he died because of lack of proper care and negligence, then the burden lies on the hospital to justify that there was no negligence on the part of the treating doctor or hospital. Therefore, in any case, the hospital is in a better position to disclose what care was taken or what medicine was administered to the patient. It is the duty of the hospital to satisfy that there was no lack of care or diligence. The hospitals are institutions, people expect better and efficient service, if the hospital fails to discharge their duties through their doctors, being employed on job basis or employed on contract basis, it is the hospital which has to justify and not impleading a particular doctor will not absolve the hospital of its responsibilities."

In conclusion, my answer to your question would be, you can approach the Consumer Forum, where you don’t have to pay any Court Fee on your claim, and you may win the case with substantial evidence on your side. For the degree of evidence that is required to win a claim of Medical Negligence see the explanation above. Whether you have winning stuff in your case or not, can be best diagnosed by a independent, equally qualified Doctor, and not a lawyer. Approach a doctor first, and then with his opinion, approach a lawyer or directly the Consumer Forum of your district.

Disclaimer: The opinion expressed above, based on assumptions, is not tantamount to Legal Advice.

Sebi bans PwC entities from auditing listed firms for two years

*Sebi bans PwC entities from auditing listed firms for two years Sebi also orders disgorgement of over Rs13 crore of wrongful gains from PwC and two erstwhile partners*

The order comes nine years after the scam at Satyam Computer Services came to light and after two failed attempts by PwC to settle the case through the consent mechanism.

Finding PwC guilty in the Satyam scam, India’s capital markets regulator on Wednesday barred its network entities from issuing audit certificates to any listed company in India for two years.

The Securities and Exchange Board of India (Sebi) also ordered the disgorgement of over Rs13 crore of wrongful gains from the auditing firm and its two erstwhile partners who worked on the IT company’s accounts. The order comes nine years after the scam at Satyam Computer Services came to light and after two failed attempts by PwC to settle the case through the consent mechanism.

This is also one of the most stringent orders passed by any regulator against a Big Four auditor.

In a 108-page order, Sebi has imposed a two-year ban on entities/ firms practicing as chartered accountants in India under the brand and banner of PwC from directly or indirectly issuing any certificate of audit of listed companies, compliance of obligations of listed companies and intermediaries registered with the regulator.

Sebi noted that the order would not impact audit assignments relating to the fiscal year 2017-18 undertaken by the firms forming part of the PwC network. Besides, Price Waterhouse Bangalore and its two erstwhile partners—S. Gopalakrishnan and Srinivas Talluri—have been directed to jointly and severally disgorge the wrongful gains of “Rs13,09,01,664 with interest calculated at the rate of 12 per cent per annum from January 7, 2009 till the date of payment”. They have to pay the amount within 45 days.

Further, Gopalakrishnan and Talluri have been restrained from directly or indirectly issuing any certificate of audit of listed companies, compliance of obligations of listed companies and intermediaries registered with Sebi for three years.

After consent pleas were rejected, PwC had approached the Supreme Court challenging Sebi’s jurisdiction over auditors. The apex court had asked the regulator to expeditiously pass the order in the matter after giving due opportunity, including access to documents, to the parties concerned.

Sebi said the objective of insulating the securities market from such fraudulent accounting practices perpetrated by an international firm of repute will be ineffective if the directions do not bring within its sweep the brand name PwC. The network structure of operations adopted by the international accounting firm should not be used as a shield to avoid legal implications arising out of the certifications issued under the brand name of the network, the order said.

“As we have said since 2009, there has been no intentional wrong doing by PW firms in the unprecedented management perpetrated fraud at Satyam, nor have we seen any material evidence to the contrary. We believe that the order is also not in line with the directions of the Bombay High Court order of 2011 and so we are confident of getting a stay before this order becomes effective,” PwC said in the statement.

It also noted that the order relates to a fraud that took place nearly a decade ago in which it played no part and had no knowledge of. Further, the statement said that Price Waterhouse Network firms in India has learnt the lessons of Satyam and invested heavily over the last nine years in building a robust and high quality audit practice.

First Published: Thu, Jan 11 2018. 12 38 AM IST
Source - http://www.livemint.com/Companies/KlbBm6VhxhQQswdgT9bycK/Satyam-case-Sebi-bans-PwC-entities-from-auditing-listed-fir.html

A silent Regular Blood donor .... Guess who?

40 ವರ್ಷಗಳಿಂದ ಪ್ರತಿ ಮೂರು ತಿಂಗಳಿಗೊಮ್ಮೆ ರಕ್ತದಾನ ಮಾಡುತ್ತಿರುವ ಸುಪ್ರೀಂಕೋರ್ಟ್ ಮುಖ್ಯನ್ಯಾಯಾಧೀಶರು..!

Since 40 years, every three months the Hon'ble Chief Justice of India has been donating blood.

ನಮ್ಮ ಸಮಾಜದಲ್ಲಿ ರಕ್ತದಾನ ಮಾಡುವವರ ಸಂಖ್ಯೆ ತುಂಬಾ ಕಡಿಮೆ ಎಂದು ಹೇಳಬಹುದು. ಯಾರಾದರೂ ತಮ್ಮ ಕುಟುಂಬ ಸದಸ್ಯರು, ಬಂಧುಗಳು, ಸ್ನೇಹಿತರಿಗೆ ಅವಶ್ಯಕತೆ ಇದ್ದರೆ ಮಾತ್ರ ರಕ್ತದಾನ ಮಾಡುತ್ತಾರೆ. ಯಾರೋ ಕೆಲವರು ಇದಕ್ಕೆ ಭಿನ್ನವಾಗಿ ಯೋಚಿಸುತ್ತಾರೆ. ಅಂತಹ ಕೆಲವರಲ್ಲಿ ಅವರು ಒಬ್ಬರು. ಆದರೆ ಅವರು ಸಾಧಾರಣ ವ್ಯಕ್ತಿಯಲ್ಲ. ಭಾರತದ ಸರ್ವೋಚ್ಚ ನ್ಯಾಯಾಲಯದ ಮುಖ್ಯ ನ್ಯಾಯಾಧೀಶ. ಅಂತಹ ಅತ್ಯುನ್ನತ ಪದವಿಯಲ್ಲಿದ್ದು ಸಹ ರಕ್ತದಾನ ಮಾಡುವುದನ್ನು ನಿಲ್ಲಿಸಿಲ್ಲ.

Not everyone in India willingly or of his own accord consents for blood donation, unless the life of a friend or relative is at stake.
But the Chief Justice of Supreme Court o India, has set an example for all of us.

ಎಷ್ಟೇ ಉನ್ನತ ಸ್ಥಾನದಲ್ಲಿದ್ದರೂ ಪ್ರತಿಯೊಬ‌್ಬರು ತಮ್ಮ ಕನಿಷ್ಠ ಸಾಮಾಜಿಕ ಜವಾಬ್ದಾರಿಯನ್ನು ಮರೆಯಬಾರದೆಂದು  Chief Justice ಜಗದೀಶ್ ಸಿಂಗ್ ಹೇಳುತ್ತಾರೆ.
He says everyone should have a Basic or Minimum sense of Social Responsibility irrespective of his position  or status in life.

ಇವರಿಗೆ ವಯಸ್ಸಾದರೂ ಸಹ ರಕ್ತದಾನ ಮಾಡುವುದನ್ನು ನಿಲ್ಲಿಸಿಲ್ಲ.  ಇವರನ್ನು ಎಲ್ಲರೂ ಆದರ್ಶವಾಗಿ ತೆಗೆದುಕೊಂಡರೆ ಎಷ್ಟೋ ಜನರ ಬದುಕಿನಲ್ಲಿ ಬೆಳಕು ತಂದವರಾಗುತ್ತವೆ.

Despite his age and attaining the highest Constitutional Position CJ Jagadish Singh Kehar has not stopped Blood Donation. He is a role model for everyone.

ಇನ್ನೊಂದು ವಿಷಯ… CJ ಜಗದೀಶ್ ಸಿಂಗ್ ಹಾಗೆ ರಕ್ತದಾನ ಮಾಡುವುದನ್ನು ಯಾರಿಗೂ ತಿಳಿಸಿರಲಿಲ್ಲ.

This fact came to light just recently when the CJ had been to AIIMS Delhi to donate blood as usual, and was not known in thepublic realm all these years.

Source - https://kannada.ap2tg.com/supreme-court-chief-justice-participating-in-blood-donations-from-40-years/

India's Business set-up Bottlenecks

Building a factory in India is not for the faint hearted. 

Even if a company is fortunate and manages to buy land - which, by the way, is becoming more and more difficult, expensive and time-consuming due to complex laws, people's rising expectations and local politics - that is just a start. 

A manufacturing company in India, on average, has to comply with nearly 70 laws and regulations. Apart from the multiple inspections, it has to file around 100 returns in a year, according to a 2013 report by consultancy firm Deloitte. 

Then there is the double maze of tax and labour laws that can be a big pain even in the best of times. Poor infrastructure does not help either. 

Will the NDA government, whose economic programme hinges on boosting the manufacturing sector, be able to bring about the required change? 

Will it be able to debottleneck the process of setting up and running a factory in the country so that its plan to create millions of new jobs in manufacturing sees the light of day? 

Problems in acquisition of land, delays in environmental and other clearances and infrastructure bottlenecks have taken a toll. 

In the past five years (2011 to 2015), new projects have seen a marked reduction of 44 per cent from the period between 2006 and 2010. The value of stalled projects more than tripled during the period. 

Worse, straddled with huge distressed assets, core sector companies are more concerned about avoiding default rather than making fresh investments. 

As a result, India's investment-to-gross domestic product ratio has fallen for five straight financial years now. 

The NDA government has tried to correct this through a massive increase in investments to build infrastructure. It is likely to follow this policy in the coming Budget, too.

Source -http://www.businesstoday.in/magazine/features/indias-manufacturing-hub-plan-is-in-a-host-of-problems/story/229415.html 

Burberry faces U.S. lawsuit accusing it of deceptive price tags

British luxury fashion brand Burberry is to face a class action lawsuit in the United States, claiming it used misleading price tags at its outlets stores to fool shoppers into believing they were getting big bargains.

The company, which specifically manufactures some of the products for its outlet stores, is accused of intentionally presenting false price information on products that have never been sold in its retail stores to mislead customers.

Outlet stores typically sell excess or old stock at a discount, although some retailers also manufacture goods specifically for them.

The lawsuit in the latest in a long line of cases accusing luxury retailers of marking up goods sold in outlet stores with made-up manufacturer prices.

Last year, U.S. retailer Michael Kors had agreed to pay $4.88 million and change its sales practices to settle a similar class action lawsuit after it was accused of creating an "illusion" of deep discounts.

(Reporting by Li-mei Hoang)

Source - http://mobile.reuters.com/article/idUSKCN0VL0NT

Senior Congress leader Mallikarjuna Kharge under Lokayukta scanner for Disproportionate Wealth

Senior Congress leader Mallikarjuna Kharge is under Lokayukta scanner for allegedly possessing property worth Rs 50,000 crore in country’s many cities like Nagpur, Pune, Mumbai, Goa, Delhi, Mysore, Gulbarga and Chennai. Some of the properties are reportedly in the name of his sons, daughters, son in law and also wife.

B Rathnakar, Generary Secretary of Bengaluru based Samaj Parivarthan Samithi has leveled the allegation against Kharge that he has amassed wealth disproportionate to his known source of income and hence a complaint under Prevention of Corruption Act was filed against him.

Lokayukta’s Raichur wing, Bengaluru is conducting an inquiry into the matter. 

Lokayukta officials tell an online portal that they are looking into the complaint and are conducting a thorough probe of the allegations. The Lokayukta, however added that they are inquiring into the complaint and if the allegations have merit then an FIR would be filed and case registered.

The complaint has several allegations. It accuses of amassing wealth through misuse of his official position. It specifically states that he had made illegal appointments to 1,427 posts of assistant engineers and also junior engineers in a bid to fill the SC backlog vacancies. As the Revenue Minister of state from the year 1980, he has amassed a lot of wealth and while totaling the same it amounts to Rs 50,000 crore worth of property the complaint alleges.

A huge complex in Bannerghatta worth Rs 500 crore, a coffee plantation of 300 acres in Chikmagalur worth Rs 1,000 crore, a house worth Rs 50 crore, a Kengeri farmhouse of 40 acres, a building near the M S Ramaiah college in Bengaluru worth Rs 25 crore, a house in RT Nagar, 17 acre land on Bellary Road, a three-storey building in Indira Nagar, two houses in Sadashivanagar and other properties. Further, he is accused of heading several societies and got grants for them. “He had also lied on oath while filing his election affidavit”, the complaint also states.

Source: http://www.nagpurtoday.in/mallikarjuna-kharge-owns-rs-50000-cr-assets-across-cities-including-nagpur-alleges-plaint/12191422 

IPL, Natural Disasters And Morality - Ranjeev Dubey

A well written Article - IPL, Natural Disasters And Morality:

"When social elites endorse immoral conduct, society cannot have moral underpinnings. 

When social elites don't act on their professed ethical constructs, pointing fingers at politicians and celebrities at best comes off as part of weekend time pass.

If we want a society that genuinely strives to a better and higher moral standard, we will have to put the interest of the group taken as a whole above our dharma, as a warrior, a corporate executive or even as a father. 

That is a huge cultural shift and till we can all get there, all the indignation and the hysterics is just purgation."

'via Blog this'

Right to Repair - The Concept

The Cars these days have to be taken to the specific Brand Service centre, and you are literally at their mery of their Monopolistic Trade Practices.
These are the Scenarios in a Monopolistic Car Market:

• "We owned a Honda CRV which we had to take to the dealer to find out what was wrong. The dealer charged us $100 to look at it and tell us we needed a new $3,400.00 transmission. They said it would be dangerous to drive it away. We took it to a transmission guy who fixed it for $80.00!!!! [...]" 
• "Consumers need to have a good look at this and understand how convenient it could be to have a qualified local repair facility perform work on their vehicles. For instance in most cases when entering a dealership for repairs a service writer will take your information and then PUFF your car is gone into space. [...]"
• "i own a 2000 volvo that ran fine but the service ligt was on and i needed a master key for the trunk , when i took it to the dealer i got a key for 90.00 and they told me the service light was on because of the electronic module for the shifter and [...]" "First let me say I have never been moved to action on a bill until today. As an owner of a (2008 A6 Audi) I scheduled service for 3 basic items and one intermittent issue with AM/FM radio reception that I asked to be looked at. The items, you ask? Oil change, battery in my [...]"
• "I would like to ask you to support the “Right to Repair” legislation….I love my local mechanic, and trust him to do what is right for my car. As Massachusetts “patriots”, we deplore the attempt to remove another RIGHT, another FREEDOM!! Please stand with us!!!"
• "My wifes car (1998 Subaru Forester) had a failed water pump, and ABS light on . I called the Subaru dealer and was told the Timing belt had to be changed as well as H2o pump as the pump is behind the belt: Water pump= $500.00 Timing belt $700 to $800 depending if they had [...]"
• "Took my Subaru in for a check-up. It had a flat tire and the dealership tried to charge me double the tire cost!"
• "Our 2001 VW Eurovan has had a running problem for some time. We got a free diagnoses from a VW dealer in the mail and decided to take advantage. The result was a number of faults indicating major engine internal repair and timing chain replacements as “only the beginning of problems” that would result in [...]"

Here comes the Need to assert our "Right to Repair"

Right to Repair, is a name for several related proposed bills in the United States Congress and several state legislatures which would require automobile manufacturers to provide the same information to independent repair shops as they do for dealer shops. Versions of the bill have generally been supported by independent repair and after-market associations and generally opposed by auto manufacturers and dealerships. Since first introduced at the federal level in 2001, no version of the legislation has become law, until the Massachusetts legislature passed H. 4362, a Right to Repair bill on July 31, 2012.

Subsequent to bill passage the Automotive Aftermarket Industry Association, Coalition for Auto Repair Equality, Alliance of Automobile Manufacturers and the Association for Global Automakers signed a Memorandum of Understanding that is based on the Massachusetts law and which would commit the vehicle manufacturers to meet the requirements of the Massachusetts law in all fifty states.

Global Right to Repair

The European Union has passed Right to Repair and an aggressive effort is currently underway in Canada. Right to repair is clearly a global issue whose time has come.

What Right to Repair Does:
 
Reaffirms the owners’ right to repair their automobile and keep their families safe.
Promotes consumer safety by allowing owners or their auto technicians’ access to the computers that control the systems and components that affect the safe operation of their automobiles.
Permits owners to choose the repair shop and the replacement parts to service and maintain their vehicles.
Authorizes the Federal Trade Commission (FTC) to promulgate regulations to protect consumers and to promote competition in auto maintenance and repair. 

What It Does Not Do
 
It does not take a manufacturer’s intellectual property.
It does not affect the dealer’s warranty agreement with the vehicle manufacturers.
It does not require manufacturers to disclose manufacturing processes or trade secrets. About The Right to Repair Act

The Right to Repair Act is bipartisan legislation that would require automakers to provide the same service information and tools to independent auto and maintenance shops, as well as to consumers, that the automaker dealership service centers receive.
 
Right to Repair legislation does not attempt to restrict motorists from choosing car dealerships, it simply ensures that vehicle owners have a choice when deciding where to take their vehicles for repairs and what parts are best to use in maintaining their vehicles. The Automotive Aftermarket Industry Association and the Coalition for Auto Repair Equality urge Congress to support the Right to Repair Act to give consumers a choice and keep repair costs down. It's the right thing to do for consumers, for business and the economy.

Now that India too is crowded with foreign Brands of specialized Cars, its high time, We, The People, demand our Right to Repair.

Car Insurance Fraud Alert

Earlier this month, the IRDA issued a caution note to the public warning against such calls, especially those that pretend to be from the authority. “IRDA does not involve itself, directly or through any representative, in sales of any kind of insurance or financial products and does not announce any bonus for policyholders or insurers,” the notice said.

A car company representative in charge of its insurance operations in the city said that the culprits get details of vehicle owners from Regional Transport Offices. They zero in on policies nearing renewal period and call posing as vehicle company representatives. “We advise customers not to divulge details of their policies to such callers. There have even been instances of fake receipts been given,” the representative said.

“Your vehicle insurance is due on XX date. If you apply for XXX insurance instead of the existing one by this weekend, you will get 60 per cent off on your premium. This company has a tie-up with us.”

If you receive calls like this and do not cross-check with your vehicle company, you may fall prey to what even the Insurance Regulatory and Development Authority (IRDA) has claimed is an increasing number of spurious calls making “fictitious and fraudulent offers”. And they do not spare anyone — not even a former Chief Minister.

One such customer recalled how he nearly fell prey to the call. “I had even readied a cheque, but the vehicle company called me in the nick of time. The caller also did not follow up because I chose to stay with the existing policy, not the one they were offering,” he said.

The IRDA has time and again urged the public to remain alert against frauds or scams perpetrated by those who claim to be employees of the authority or other insurance companies and lodge a police complaint if they come across such calls. 

Karnataka state Joint Commissioner of Police (Crime) Hemanth Nimbalkar said that the police had not come across any such complaint so far. 

Source - The Hindu

Scrapping the RTO setup, and Protest by RTO Agents - An interesting Saga in the Making

This Saga been waiting for years to happen, and now its started. 

 

Finally someone realised that its time to Scrap or amend the Motor Vehicles Act 1988. The Union Minister makes a statement, and the protectorates under the MV Act start running for cover. This Act has spawned innumerable Corrupt Officers and their Handmaids/Manservant - Agents, who together run a parallel RTO setup in the country, though not in unison, but on similar lines.

Remember the KamalHasssan starring Movie "Indian" in Tamil, or "Hindustani" in Hindi??

The story runs on two tracks. One is that of Chandra Bose alias Chandru (Kamal Haasan), a small-time broker outside the RTO (Regional Transport Office) who gets people to high positions by accepting bribes. He is supported in this work by Subbiah (Goundamani). Paneerselvam (Senthil) plays an officer in the RTO who has conflicts with Subbiah. Aishwarya (Manisha Koirala) and Chandru are in love with each other. Sapna (Urmila Matondkar) is the daughter of Gandhikrishna, an officer in RTO. Her father promises to get Chandru a job of being a brake inspector in the RTO, if he runs errands for them. He agrees to work for them, and soon he becomes a brake inspector.
The other track is of Senapathy alias Indian (Kamal Haasan), a 70-year-old man who kills top government officials (like Commissioners of Corporation etc.) in an extreme attempt to weed out corruption from Indian soil.

Thats about the EXTANT of corruption in the Regional Transport (Authority) Offices in the Indian Soil.

Now for the news....

 

After axing the Planning Commission of India, it seems that the Narendra Modi government will soon scrap the Regional Transport Offices (RTO) and replace them with an alternative system in the coming months. 

 

Union Minister of road transport and highways Nitin Gadkari while delivering the JS Karandikar memorial lecture in Pune said that the central government was in the process of bringing in a law to scrap the outdated Regional Transport Offices (RTO). He said, "There are some outdated laws and systems which need to be scrapped. Systems like RTOs will soon be abolished; there is no need for RTOs. We have prepared a law which will be introduced soon to replace RTOs." 

 

At RTOs, corruption has become a way of life Corruption has become an everyday phenomenon in RTOs and this has led to the word 'bribe' being replaced with ‘service charge,' and further encouraging the back-door policies. 

 

The future plan - alternative for RTOs Revealing more about the future plan of scrapping RTOs, Gadkari said that a new system will be employed with the help of the traffic models in the UK and other countries to nab the traffic violators. 

 

Not only the RTO offices even the RTO officials create a lot of problems for the public. In January a non -government organization (NGO) based in Thane had alleged that at the border check posts, the number of heavy carriage vehicles are underreported which in turn caused multi-crore losses to the state exchequer. 

 

Unless the middlemen (the agents) are eliminated and more people are appointed, corruption cannot be weeded out from these RTOs. Thus, it seems this plan to scrap these Regional Transport Offices will be in country's favour. 

 

Source: http://news.oneindia.in/feature/scrapping-rtos-another-step-narendra-modi-government-toward-1505198.html

The Association of RTO Agents, a body with 300 members who offer their services to Mumbaikars inside and outside the Mumbai RTO office in Tardeo, has decided to protest if such a move comes into being.

Ilyas, the head of the RTO Association, said, "We serve Mumbaikars charging a nominal sum. We make sure people get relevant documents on time. If the Central government is planning to scrap RTOs, where will we go and what will happen to our business and our families? We will definitely protest against this decision, if it gets implemented."

Agents in Mumbai countered Gadkari's argument of outdated computerisation, saying it is nothing but a strategy to make money for RTO officials. 

At the Tardeo RTO office, Ramesh Patel has been running pillar to post to renew his licence. "For the last two months, I have been trying to renew my driving licence. You can see this receipt given to me two months back. But till today, no RTO official is willing to give me the renewed licence or even not ready to give me a new date. I wasted my entire day today, but no one has an answer."

When asked if he had gone through any agent, he replied, "Why should I? These agents will take a good amount from me for just renewing my old driving licence. Why are these RTO officials here?"
Source: http://indiatoday.intoday.in/story/gadkari-regional-transport-offices-wrong-notions-mumbai/1/377865.html

Union Road Transport and Highways Minister Nitin Gadkari on said that the government will introduce the Motor Vehicles Amendment Bill in the next Parliament session.

“The Bill, being prepared in sync with practises in six advanced nations – USA, Canada, Singapore, Japan, Germany and the UK will be introduced in the next session of Parliament. This will overhaul the sector bringing to an end the corrupt practises in RTOs,” Gadkari said.

The Act has become obsolete in the present context and needs overhaul, he said, adding the new law is designed in a way that will provide permits online besides slapping fines on violators of traffic rules on the basis of recordings in camera.

“The new law will provide a corruption free and transparent system with a proper record of driving licenses. Data would be utilised in e-governance. International norms are there for vehicle design, pollution control on the basis of prevalent laws in six advanced nations – US, Canada, Singapore, Japan, Germany and UK, I have firm faith that the new law will end corrupt practises in RTOs through e-governance,” he said.

Source: http://freepressjournal.in/motor-vehicles-bill-in-next-parliament-session/

Forensic Accounting - A Career Option

Forensic Accounting Beginnings

The term "forensic accounting" was first used in 1946 by Maurice E. Peloubet, a partner in a New York accounting firm. He wrote about the use of accounting in courtroom proceedings as part of testimony, but acknowledged that investigation was becoming more prevalent for accountants due to the increase in government agencies that regulated financial practices. Journals began to publish articles about the connections between law and accounting. In 1953, a New York lawyer named Max Lourie claimed that he invented the phrase "forensic accounting," although Peloubet wrote about it first. Lourie stressed the need for forensic accounting literature and training.

Forensic accounting service has been the growth industry in the 1990s. Called the private eyes of the corporate culture, forensic accountants must have an investigative mentality. A normal accountant acts like a watchdog, but a forensic accountant must be trained to act like a bloodhound. They look behind the facade and do not accept financial records at their face value.

Forensic Accounting

"Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that forensic accountants generally have to work.

“Forensic accounting” is the practice of utilizing accounting, auditing, and investigative skills to assist in legal matters. Forensic accounting is the specialty practice area of accountancy that describes engagements that result from actual or anticipated disputes or litigation.

Forensic accounting is the application of accounting principles, theories, and disciplines to facts or hypotheses at issue in a legal dispute, and encompasses every branch of accounting knowledge.

There are two major aspects within forensic accounting practice -

1. Litigation support services that represent the factual presentation of economic issues related to existing or pending litigation. In this capacity, the forensic accounting professional quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes, even before they reach the courtroom. If a dispute reaches the courtroom, the forensic accountant may testify as an expert witness.

2. Investigative services that make use of the forensic accountant’s skills, which may or may not lead to courtroom testimony. It is the act of determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, and insurance fraud have occurred. As part of the forensic accountant’s work, he or she may recommend actions that can be taken to minimize future risk of loss. Investigation may also occur in civil matters. For example, the forensic accountant may search for hidden assets in divorce cases. An important criterion is the ability to respond immediately and to communicate financial information clearly and concisely in a courtroom setting. A forensic accountant must be open to examining all alternatives, scrutinising the fine details and at the same time seeing the big picture.

Forensic accounting can involve the application of special skills in accounting, auditing, finance, quantitative methods, certain areas of the law and research, and investigative skills to collect, analyze, and evaluate evidential matter and to interpret and communicate findings.

Application of Principles of Forensic Accounting to an organisation

• One premise of forensic accounting is to look for indications of abnormal occurrences in the accounting and financial reporting systems.

• Having a forensic accounting orientation to designing the accounting processes will provide an opportunity to design in steps for verification of key assumptions and data while also providing the opportunity for identifying possible fraud.

• The related area of forensic auditing can help in reducing the transaction processing risk by helping to perform audit type procedures on a routine schedule.

• Timely performance of audit type procedures can help management and internal audit function be more effective by helping to identify and resolve potential internal control breakdowns quickly and thoroughly. It can reduce external audit costs by regularly completing testing procedures that are part of the annual certified audit.

• In instances where information processing systems cover a broad array of businesses and/or locations establishing routine or continuous monitoring of all transaction processing systems, it can be considered as a type of forensic accounting.

Some of the areas that the principles and activities of forensic accounting can apply in an organization include:

• Reviewing operational transactions for compliance with standard operating procedures and approvals.

• Completing analysis of financial disbursement transactions in the accounting system to determine if they are normal or outside company policy and, thus, possibly fraudulent.

• Reviewing general ledger and financial reporting system transactions for possible improper classification or manipulation of data or accounts and its impact on the resulting financial reports.

• Examining warranty claims or returns for patterns of fraud or abuse.

• Helping estimate the economic damages and the resulting insurance claims that stem from calamities such as fires or other natural disasters.

• Evaluating or confirming business valuation in mergers and acquisitions.

 Forensic Accountants - The Bloodhounds of Book-keeping

 Forensic accounting requires the most important quality a person can possess: the ability to think.

There is no book that tells you how to do a forensic investigation. It is about solving a puzzle or peeling an onion. It takes creativity.

All of the larger accounting firms, as well as many medium-sized and boutique firms, have specialist forensic accounting departments. Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in insurance claims, personal injury claims, fraud, construction, or royalty audits.

Forensic accountants may be involved in recovering proceeds of crime and in relation to confiscation proceedings concerning actual or assumed proceeds of crime or money laundering. In the United Kingdom, relevant legislation is contained in the Proceeds of Crime Act 2002. In India there is a separate breed of forensic accountants called Certified Forensic Accounting Professionals. Some forensic accountants are also Certified Fraud Examiners, Certified Public Accountants, or Chartered Accountants.

Forensic accountants utilize an understanding of business information and financial reporting systems, accounting and auditing standards and procedures, evidence gathering and investigative techniques, and litigation processes and procedures to perform their work. Forensic accountants are also increasingly playing more proactive risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisers to audit committees, fraud deterrence engagements, and assisting in investment analyst research.

The forensic Accountant is a bloodhound of Bookkeeping. These bloodhounds sniff out fraud and criminal transactions in bank, corporate entity or from any other organization’s financial records. They hound for the conclusive evidences. External Auditors find out the deliberate misstatements only but the Forensic Accountants find out the misstatements deliberately. External auditors look at the numbers but the forensic auditors look beyond the numbers.

Forensic accountant takes a more proactive, skeptical approach in examining the books of Accounting. They make no assumption of management integrity (if they can assume so then there is no need for their appointment) show less concerns for the arithmetical accuracy have nothing to do with the Accounting or Assurance standards but are keen in exposing any possibility of fraud.

In addition to the specialized knowledge about the techniques of finding out the frauds one needs patience and analytical mindset. One has to look beyond the numbers and grasp the substance of the situation. It is basically the work of the intelligent accountants. He needs to question seemingly benign document and look for inconsistencies. He searches for evidence of criminal conduct or assists in the determination of, or rebuttal of, claimed damages.

Who needs Forensic Accountants

Forensic accountants are more than just number crunchers who happen to work on criminal or civil disputes -- these accountants possess additional skills. They must conduct investigations, know how to use a variety of computer programs and communicate well. Some forensic accountants specialize in specific industries that are susceptible to fraud, such as insurance or banking, and learn the business practices associated with those fields.

Forensic Accountants work in most major accounting firms and are needed for investigating mergers and acquisitions, and in tax investigations, economic crime investigations, all kinds of civil litigation support, specialized audits, and even in terrorist investigations.

Forensic Accountants work throughout the business world, in public accounting, corporations, and in all branches of government.

Forensic Accounting in India

Forensic accounting is unique in that it combines accounting with investigation. These bloodhounds— as opposed to the watchdogs that are auditors— attempt to sniff out fraudulent transactions from the financial records of banks and companies.

Sherlock Holmes was probably the most famous practitioner But Kautilya was the first economist who openly recognized the need of the forensic accountants. He mentioned forty ways of embezzlement centuries ago.

The Opportunities for the Forensic Accountants are growing at the rapid speed. Collapse of Enron and World Trade Centre twin towers have blessed the American Forensic Accountants with the opportunities.

Forensic accounting is still nascent in India. However, the nature of fraud in India has undergone a change. Reserve Bank of India has made forensic accounting audit compulsory for banks in India. However banks are hesitant in approaching certified fraud examiners, and are mostly dependent on their internal auditors.

In India the formation of Serious Fraud Investigation Office is the landmark creation for the Forensic Accountants. Growing cyber crimes, failure of regulators to track the security scams, series of co-operative banks bursting - all are pinpointing the need of forensic accounting, irrespective of whether we understand the need or not.

In the Indian context the Forensic Accountants are the most required in the wake of the growing frauds. After the Satyam scam, forensic auditors are much in demand as many companies want to understand what could be the initial warning signals of a Satyam kind of fraud in other Indian companies. Even the government’s Serious Fraud Investigation Office (SFIO) has sought the help of forensic accountants to get to the root of the financial fraud at Satyam.

How to become a Forensic Accountant

Commerce graduates can easily take up forensic accounting as a career. You need to become a chartered accountant and then specialise in forensic accounting. The forensic accountants prior audit and accounting experience will be of tremendous assistance. But ultimately, it is only through working with experienced forensic accountants on various cases that one can learn the skills necessary to become a capable forensic accountant.

There are several organizations that provide training and additional certification for forensic accountants. Each organization requires that its members possess varying degrees of education and experience, and they must sit for additional exams. These certifications show that a forensic accountant has training and experience beyond that of a standard accountant.

 Some places where one can study and/or obtain certifications as Forensic Accounting Professional are:

• Institute of Chartered Accountants of India, New Delhi

• Association of certified fraud examiners (ACFE), USA

• Indiana University, Bloomington, USA

• British Columbia Institute of Technology, Canada

• Charles Stuart University, New South Wales, Australia

Some forensic accountants take courses in:

• Sociology

• Psychology

• Law enforcement

• Criminal law

• Business law

• Business and finance

• Information systems

• Communication

Conclusion

Forensic accountants are trained to detect evidence of frauds. Forensic accounting is about more than legal matters and financial numbers. There is an acute shortage of forensic accounting skill sets in India. A huge demand for forensic accountants has come up in the wake of the requirements from the investors after the Satyam fiasco. There are only about 400 forensic accountants in the country though India loses approximately $40 billion because of frauds.

Author - Rajkumar S. Adukia

Senior Partner, Adukia & Associates, Chartered Accountants

Mumbai 400 058

Email rajkumarfca@gmail.com

Source - Forensic Accounting - 

http://www.caclubindia.com/articles/forensic-accounting-20172.asp#.UzRcBPmSxhY

Monsanto and DuPont - Public Perception

Public perception is a curious thing. 

Two companies can do many of the same things, and yet one will take a much larger amount of flack and criticism for it. Or, as the Seattle Organic Restaurants website says, “the difference between a rainforest and a jungle is that a rainforest has a PR agent”. 

To that end, I find it very interesting that Monsanto is one of the most-hated companies on the planet, with the internet and social media full of stories and passed-around memes that declare it to be one of the worst companies in the world. And yet, DuPont is just as big in genetically-modified seeds and agricultural chemicals, and pursues largely the same policies as Monsanto with respect to pricing, IP enforcement, and so on.


So it merits the question – Why is Monsanto evil, but DuPont isn't?



Similar Unpleasant Histories

One of the most commonly-circulated bits on Monsanto in the social media space appears to be a piece that takes Monsanto to task for a long corporate history of developing dangerous products. In prior corporate incarnations, Monsanto did indeed produce Agent Orange, polychlorinated biphenyl (PCBs), DDT, and artificial sweeteners like saccharin and aspartame. While there is still vigorous debate about the safety of artificial sweeteners, nobody disputes that Agent Orange, PCBs, and DDT are bad news.


But let us have a look at DuPont's history.


DuPont started as a virtual monopoly manufacturer of gunpowder, making money hand over fist during the U.S. Civil War and then expanding into various other military explosives. Unlike Alfred Nobel, who felt so guilt-ridden about his invention of dynamite and its subsequent use in warfare that he established the Nobel Prizes, the DuPont family was apparently more interested in arranging marriages between cousins to maintain the family fortune. 


DuPont was also involved in the development of nuclear weapons. Later, DuPont developed synthetic materials like nylon and polyester that will, in many cases, still be on this earth for a long, long time. Likewise, DuPont has had its share of dangerous pesticides, herbicides, and other chemicals include coatings like C8. By the way, DuPont also manufactured Agent Orange, DDT, and PCBs … just like Monsanto did.

The point is, it's difficult to be a large player in the chemicals industry and not eventually produce a dangerous product and/or experience a significant industrial accident. Many of the chemical companies large enough and old enough to be around at the time (including Monsanto, DuPont, and Dow made products like Agent Orange, DDT, PCBs. Likewise, investors and those worried about the environment ought to be at least as worried about the neonicotinoid insecticides made by the likes of crop science companies Bayer and Syngenta  that have been implicated in colony collapse disorder affecting honeybees.

Source- Investopedia.com

Now a Social Media Linked Bank Account - Kotak Jifi

Kotak Mahindra Bank has launched Jifi, a fully-integrated social bank account with youth as the target segment. Jifi transcends digital banking by seamlessly incorporating social networking platforms such as Twitter and Facebook with mainstream banking, the bank said.

Jifi is a zero-interest current account with no minimum balance conditions, and can be opened with an initial payment of Rs 5,000. All balances over Rs 25,000 automatically move into term deposits at applicable interest rates. Opening a Jifi account is triggered by a self-invite by signing up through Facebook or email.

K V S Manian, president (consumer banking) at Kotak Mahindra Bank Limited, said: “Jifi is a unique digital account that integrates social media platforms like Twitter and Facebook for secure and seamless on-the-go information. With Jifi, the first-of-its-kind digital account, Kotak takes banking to the next orbit by providing a hassle-free proposition to tech-savvy persons who prefer to stay online at all times.”

Jifi also has a loyalty point programme encourages high level of interactivity among account holders. In addition to transacting on social media platforms, customers can transact through net banking and the Kotak Mobile Banking app.

Jifi customers have access to all conventional bank offerings as well, which include pan-India branch and ATM network, ‘platinum’ debit card, all-India toll-free number, net card and net banking access, etc. 

The bank believes that in the next three to five years, 30-50 per cent of account openings will happen through this initiative.

“As far as the security features are concerned, if the Facebook or Twitter account of the customer is hacked, then the hacker will be at the most able to see the reward points of the customers and use those points. But they will not be able to do any transactions or check the bank balance of the customer. The customer's banking details are fully secure and cannot be seen by the hacker. For transactions, the customer has to log in to net banking,” said Deepak Sharma, executive vice-president and head-digital initiatives, at Kotak Mahindra Bank.

Jifi is currently available for resident Indians in select locations including Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Pune, Coimbatore, Jaipur and Lucknow. The account can be accessed from anywhere in the world.

Source - Business Standard

For more info Visit - http://www.kotakjifi.com

Powers of Law Commissions - The Hindu

The Law Commission of India



As we get closer to the great grand election, there is much talk about the enforcement of the moral code of conduct across the country. It is a sad reality that in a country with a rich history and heritage, the politicians and leaders need to be reminded about the etiquettes of public speaking. The seat of judiciary in New Delhi, the Supreme Court on Thursday asked the Law Commission to look into the issue of hate speeches made by leaders of political, social and religious outfits and consider framing guidelines to regulate provocative statements. This week, freewheeling will focus on the Law Commission. 

Law Commission of India is an executive body consisting of legal experts established by the Central Government whose major function is to work for legal reform. More than a dozen research personnel work for this organisation. The administrative side is taken care of by the secretarial staff.

From the 1830s , Law Commissions have been constituted from time to time to recommend reforms to clarify on particular branches of law. The first law commission was established in 1834 under Lord Macaulay. The second, third, fourth Law commissions were constituted in 1853, 1861 and 1879 respectively. These Law commissions have played a great role in enriching the Indian Statute Book. The Indian Code of Civil Procedure and the Transfer of Property Act are products of the labour of the first four Law Commissions.

The first Law commission of independent India was established in 1955 with Setalvad as Chairman. As of today, there have been 20 Law Commissions, each with a term of three years. The present Law Commission (the twentieth) came into effect from September 1, 2012 and its term ends on August 31, 2015.

Areas of work 

The Law Commissions identify laws which are no longer relevant, not in harmony with the existing climate, and laws which require change. It also suggests suitable measures for quick redressal of citizens’ grievances, in the field of law. Law Commission takes all necessary steps to make the poor benefit out of the legal process. These are just a few of the many things that the law commission does. Apart from examining the laws for promoting gender equality and suggesting amendments, it also recommends revision in the central acts.

The Ministry of Law in consultation with the concerned administrative ministries considers the reports of the law commissions and submits it to the Parliament. Subsequently, they are acted upon by government departments concerned.

From - Powers of Law Commissions - The Hindu

Law Commission to propose changes to Arbitration Act - From The Hindu

The Law Commission will submit a proposal for amendments to the Arbitration and Conciliation Act, 1996, to strengthen the arbitration system to settle disputes.

“The submission before the Law Ministry is likely by the end of April,” said AP Shah, Chairperson, Law Commission of India.

Arbitration is out-of-court dispute resolution. The procedure is simpler than the rigour observed in courts but the “award” by the arbitrator is legally binding. Speaking at a conference organised by The Nani Palkhivala Arbitration Centre here, he said the changes to the Act are aimed at a harmonious relationship between courts and the arbitration system. “Courts must be partners, not supervisors,” he said.

However, the proceedings of certain arbitrations seem questionable. He cited an instance of the Delhi High Court dismantling two arbitrations on the grounds of undue delay and complaint by the parties of excessive fees.

The amendments will help bolster the credibility of arbitration and fortify the process against interference by courts. There are provisions to look at enlarging the scope of cases that can be referred to arbitrators and non-appointment of arbitrators related in any way to parties in contention. A list of cases in which an arbitrator should not judge and proposals to regulate delay are also among the recommendations.

“After two years of proceedings, the parties may extend, but once 30 months get over, the court may intervene,” he said.

Source - http://www.thehindubusinessline.com/news/states/law-commission-to-propose-changes-to-arbitration-act-soon/article5792501.ece

Yes we can! (destroy a booming economy) - Straight from the Hip by J Mulraj

Yes we can! (destroy a booming economy) - Straight from the Hip by J Mulraj

Manmohan Singh's version of Obama's 'Yes We Can' speech: 'The one who is on my mind today is Mother India, who is thousands of years old' 

"And tonight, I think about all that she's seen throughout her life - the heartache and the hope; the struggle and the progress; the times we were told that we couldn't destroy her currency's value, which was equal to the $ in 1947, and the economists who opined we cannot make her diminish in stature. I say to them: Yes we can diminish it. 

"At a time when rational voices were warning us of the dangers to her economy from uncontrolled fiscal and current account deficits, we silenced them with leaky welfare schemes that allowed us to reach for the ballot, whilst destroying the country's balance sheet. I say to them: Yes we can destroy it. 

"When there was optimism and entrepreneurship across the land, we saw a nation succumb to fear with policy paralysis, new subsidies, and new regulations that stifled growth. I say to them: Yes we can stifle it. 

"When the corruption scandals and scams fell on our TV channels and threatened our crony capitalism world, she was there to witness a generation brainwashed to yield to corruption and lose its moral values. I say to them: Yes we can degrade values. 

As Finance Minister, Manmohan Singh led India out of the 1991 economic crisis. As Prime Minister, he has led India back into a bigger one. 

Last week the Parliament passed two laws, the Food Security Bill, which seeks to provide subsidised grain to 67% of the population, even though 23% are below the poverty line and deserving of the subsidy, at an estimated annual cost of Rs 1.25 lac crores; and the Land Acquisition Bill, which seeks to provide farmers who sell their land to developers either for manufacture or for housing, a fair compensation for it, judged to be 4 times the (undefined) market rate for rural and 2 times for urban land. The non-definition will, of course, lead to uncertainty and further corruption. 

There are other complications. The acquisition is subject to clearance by 80% of the owners in the case of a private acquirer and 70% in the case of a PPP project (public private partnership). It is also subject to a social impact audit, which, in turn, is to be approved by various layers. 

This amount of uncertainty will make land acquisition for manufacture and for housing an impossibly arduous and uncertain process. It is doubtful whether foreign investors, with global choices, would wish to undergo it. 

India's growth story was largely predicated upon the encashment of its demographic dividend. The young population, after getting jobs, would have spending power, and the economy would be led by a consumption driven boom for decades. 

This story requires two ingredients. One is the provision of jobs. The second is the provision of housing for the young population, which will largely be a migratory one from rural to urban India. In India, agriculture has a 14% share of national income but over half the population depends on it. This is unjust and has to change. It will change when they get jobs and move to urban areas, where they will need housing. 

The service sector has provided the jobs so far, but the potential to provide millions of jobs in future will necessarily come from the manufacturing sector. 

So will the uncertainties, and the additional costs, emanating from the recently passed Land Acquisition Bill encourage the manufacturing sector to provide the jobs, and the real estate sector to build the homes, and if so, at what cost? 

It was Martin Luther King who said "True compassion is more than flinging a coin to a beggar; it is not haphazard and superficial. It comes to see that an edifice that produces beggars needs restructuring" 

Even prior to the Land Acquisition bill, some large foreign companies had expressed their intention to quit India.Nokia, chagrined at the reneging of the promise by Tamil Nadu State to refund it a 4% VAT, as agreed to, is one . Shell and Vodafone are fighting disputes relating to untenable tax demands. 

It is little wonder that GDP growth for the quarter ended June has fallen to 4.4%, a 4 year low. The falling rupee will push up import cost of oil (an estimated 27%) and push up prices of petrol, diesel and power. This would lead to less consumption, hence lower consumption led GDP growth. The investment led growth will also slow down, thanks to a variety of factors including high interest rates and the higher cost, longer time, and uncertainties relating to land acquisition. 

The root of all this is appallingly poor governance. As Martin Luther King said, quoted above, the polity should see that the edifice that produces beggars needs restructuring. The polity is, however, busy making Luddite laws and messing up the India story. In some States there is little law and order; politically connected people get away with bulldozing homes of doctors, without authorisation. 

Even as they accuse and transfer a Government official of illegally demolishing a wall, which was held by a District Magistrate to be a false accusation. So a Government functionary is falsely accused of an illegal demolition, even as politically connected persons are not arrested for doing the same thing! The District Magistrate who dared to opine that the accusation was false, was transferred! Who would invest under these conditions? 

The NSEL (National Spot Exchange Limited) imbroglio is getting murkier, and the Government is not doing what it ought to be doing. 

One can compare the Sahara episode with NSEL. In the case of the two Sahara companies, there was a regulatory vacuum as the collective investment schemes floated by them fell in the regulatory chasm between RBI and Company Law Board. Neither of them thought of a joint consultation and intervention, a criminal neglect of duty. 

Similarly, in the case of NSEL, the exchange was allowed to operate but without regulatory oversight. This makes the Government entirely culpable and responsible for the losses; it cannot evade its responsibility. 

Now in the case of Sahara, the Government delegated the task to SEBI which approached the Supreme Court, got orders passed against the two Sahara companies, and has sequestered the personal properties of the promoters of the group. 

Why can this not be followed in the case of NSEL? 

What is the reason for such a lackadaisical and ineffectual response? 

When it wants to, the Government has plenty of powers to use against a defaulting group. If it wants to. Ergo, its reluctance to act stems from the 'if' and not from the 'when'. 

It is only in times of crisis that the Government is forced to take decisions that are sensible but politically deemed to be tough. The word 'deemed' is advisedly used. It is a perception that the decisions are politically tough, more than a reality. 

One such is the discussion, now being held, to reduce Government stakes in public sector banks to below 51%. Among others, this column has been long suggesting that this is inevitable and necessary. But it is only when the Government is in a financial crisis that it thinks of such things. 

Several commentators have mooted the idea of tapping into India's huge gold reserves, by offering private holders (including temples) a scheme by which they would earn a modest income on gold surrendered to the Government plus the option to get it back in future. It has taken years, and a CAD crisis, for the Government to think of mooting it. 

Last week the sensex gained 100 points, mainly after the Prime Minister promised there would be no capital controls and the rupee bounced. For a Government that brings in retrospective changes in law, the confidence of investors is quite touching. The BSE-Sensex ended the week at 18,619. The NSE-Nifty was unchanged over the week, at 5,471. 

Will the Government now have an amnesty scheme for foreign bank account holders? If so, will it result in a substantial inflow of foreign funds lying abroad? That would cause a rally in stock markets and in the Indian currency. 

Otherwise, both would continue sinking, chasing the credibility of a Government that has driven a wedge in the India story.