Instead of aping the West, Indian Corporate leadership should promote & protect the modern Indian State. By Hem Raj Jain
18 Mar 2021
It should be a matter of concern for the leaders of corporate sector in India that due their negligence & derelictions about the fundamental issue of corporate governance and responsibilities towards secular democratic modern Indian State, an unfortunate situation has arisen where a car with explosives has been planted by police inspector near the house of one of the leading industrialist / businessman Mukesh Ambani in Mumbai on February 25, 2021 (as widely reported in media https://www.deccanherald.com/national/west/param-bir-singh-was-removed-as-mumbai-police-chief-for-free-and-fair-probe-anil-deshmukh-963479.html ). This has not only exposed the low level to which the politics, policing and government-administration in India has stooped but even the family members & home of the corporate leader are dragged into this criminalization of politics in India. Therefore the corporate leadership in India should mend their ways and do the needful as given below in the interest of developing a responsible corporate culture in India :-
(1)- First and foremost the Indian corporate leadership should understand that they have proportionately much more responsibility to promote & protect the modern Indian State because in ‘Rajtantra’ the Rajya ( State) runs the people but in ‘Prajatantra’ the people run the State and the owner of business and industry are the most important people in any country at any time and due to much bigger size of their business / industry the corporate leaders are immensely influential people in any country therefore their responsibility (about ensuring that the State functions properly) is hugely more.
(2)- In the past the Indian corporate leadership did not discharge their said responsibilities as is evident from the following:-
(i)- Regarding the sanctity of contract on which any business is based the Supreme Court of India (SCI) arbitrarily cancelled 122 (national & international) contracts in 2G spectrum case but the bodies of business / industries (like FICCI, ASSOCHAM, ICC etc) did not make proper & adequate noise against it.
(ii)- Ayodhya dispute was not about religion but about the temporal property of the Babri-Masjid hence the courts had the jurisdiction (under C.P.C.) to decide this property matter. Regarding the sanctity of property on which any business is based the SCI did not restore the legally expected status-quo-ante of Babri-Masjid (which was demolished in 1992 in presence of the observer of the SCI) before deciding the suit / appeal in Ayodhya dispute but the bodies of business / industries (like FICCI, ASSOCHAM, ICC etc) did not make proper & adequate noise against it.
(iii)- Legal persons are invoked only when natural persons are not there. Just because the West led by the USA is doing it hence the Indian corporate leadership also surrendered to the practice of double taxation where the government is levying corporate tax (on legal persons) despite the income (dividends) of shareholders (natural persons) are already taxed. This illegal practice of the government is obstructing the progress of the corporate sector which is sine-qua-non for the modern economy. People don't understand that a substantial part of capital (as equity share) in the corporate sector is invested by the shareholders who are mostly employees, the so-called middle class.
(iv)- The Indian corporate leadership has also not demanded that the political contribution by limited companies (legal person) should be banned because the owners of the limited companies (natural persons the shareholders) can give such political contributions. The Indian corporate leadership has failed to understand that this (contribution by limited companies) and non-transparent political contributions are the only reason that the said Ambani scare case has happened as alleged also by the former Chief Minister of Maharashtra that police Inspector Sachin Vaze was working as ‘vasooli adhikari’ (extortion officer) on behalf of the leaders of the government & other politicians ( as reported at https://www.youtube.com/watch?v=KjQ3r3ip7qY ).
(v)- In modern times big organizations are the order of the day and it can’t be stopped rather it shouldn’t be stopped especially if it happens due to advancements in science & technology like robotics, thinking machines, artificial intelligence etc. But the Indian corporate leadership has failed to understand that this is bound to render a large number of the population all over the world unemployed and who will have to be supported by the State through the State capital.
(vi)- For this to happen the State will have to manage three sectors namely food through ‘Comprehensive Public Distribution System’, the ‘universal free health care’ (after taking contributions from employees and employers) and ‘nominal-rent housing’ because due to huge advance in service sector (especially after IT revolution) the mobility of the people has increased and is bound to further increase and people can do it only when houses on moderate rent are available all over the country which only the State can provide where rents will be decided by ‘Rent Commission’. All these three fields will require huge State capital which government of India can easily provide if recovers about 1,000 Trillion Income Tax from about 1 million fake farmers as discussed in Parliament also in 2016 (https://timesofindia.indiatimes.com/business/india-business/Prominent-people-hiding-taxable-income-Jaitley/articleshow/51408323.cms ). But the Indian corporate leadership has not demanded the recovery of such a huge amount of income tax from fake farmers though it can bring unprecedented progress in the economy of India which will immensely benefit the private sector too.
(vii)- Even the political parties retain the leadership of promoters by way of writing in its constitution the ideology of the party and if any member flouts this ideology then he / she is expelled from the party. But by aping the West the Indian corporate sector has also adopted the practice of only equity shares in limited companies which has also promoted the practice of company take over by purchasing a few percentage of shares by other companies. Rather there should be two types of shares first the 'promoter's shares' and second the 'equity shares' where the 'promoter's shares' should be such that the said take over by other companies (or scuttling the desirable decisions of the Board) does not become that easy at the hands of equity shareholders but at the same it imparts a sense of belonging and corporate responsibility on the holders of 'promoter's shares'. After all in the West the companies (only with equity shares) were known to finance the both (the allied forces and axis forces) during World Wars in order to unethically earn money which even increased the production of arms and ammunition even for killing tens of millions of innocent people.
(viii)- Nothing has damaged the financial sector more than the Banking practice in India too. In the name of public money the unbridled usurers are given objectionable favors (like bail-outs regarding NPAs etc). Rather the Indian corporate leadership should demand that the fixed deposits in banks should be converted into 'Bank shares' and their holders should be made responsible (for the profit / allowed interest and loss) as equity shareholders are in limited companies.
(ix)- It is evident that the Indian corporate leadership has adopted the misguided policy of the West where it wants only exclusive private capital and doesn't mind raising State capital through public debt and then squanders it. Rather the Indian corporate leadership should respect the capital (whether private or State) and should condemn the practices of the governments in India where they don't deploy State-capital profitably & efficiently. The Indian corporate leadership should openly say that if the ministers can’t run a government business / industry properly (which even the so-called ‘Banias of Hindu order’ can easily do) then how will they run the country.
(3)- The alleged involvement of Mumbai police in this crime of extortion (due to which one API Sachin Vaze has been arrested, Police Commissioner Param Bir Singh has been removed and said car owner Mansukh Hiren murdered) has convinced the people all across India that without the complicity / approval of political leadership of Shiv Sena, NCP and Congress (the alliance which is in power in Maharashtra) such things can't be done by police alone. Earlier such legally objectionable nexus between BJP and Police was alleged especially during the regime of Modi as Chief Minister in Gujarat or now in U.P during the regime of C.M. Yogi and about other BJP regimes. Other political parties too have been accused of similar criminal nexus of politicians with police. The Indian corporate leadership should try to bring an end to such criminal nexus of politicians and police / administration by going deep into this problem.
(4)- The fact is that in India the politicians have become law unto themselves and there is no one / organization / institution to keep them at their proper place. Religion is not going even in the secular West (including the USA). Religion is the custodian of the values of society including of State functionaries. But the religious leaders of the religions being practiced in India (Hinduism, Islam, Sikhism, Buddhism, Christians, Jainism etc) are not prepared to make their religions as custodian of the values of secular democratic contemporary India. Therefore I suggested that the the US-Christianity should discharge its religious duty (with the help of Biden-administration) to help about two thirds of Indians by way of their voluntary conversion to Christianity so that these converted Indians (about 3 times the population of the USA) can also realize the sovereignty (God) through the democratic secular State, as mentioned at :-
https://www.pakistanchristianpost.com/opinion-details/3787 . The Indian corporate leadership should mobilize the appropriate people / forum at international level so that global religious freedom is ensured starting from India.
It is hoped that the Indian corporate leadership will rise to the occasion in the interest of bringing peace, prosperity and justice in India commensurate with rule-of law and modern powerful ideology of secular democracy in India.