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Sunday, November 23 1997

From British Raj to inspector raj...Will it ever end?


Whatever may be the merits of liberalisation, it has not made any effect on the inspector raj. Liberalisation is restricted to the Central level. It has not percolated downwards.

Industry associations are useless as far as the tackling of extortionist inspectors are concerned. If an association plays an activist role, inspectors are subdued only to the extent that they don't harass association office bearers! Most of the industrialists, however, end up bribing inspectors.

Immediately after liberalisation the menace of inspector raj was abated to a certain extent. The central excise and the Employee's State Insurance Corporation had prohibited inspectors to go to any unit without the permission of the concerned officer. For some time we had some relief but things are slowly moving back to where they were. The inspectors in connivance with the officers carry papers with official signatures but without the names of any particular organisation on it. These papers are like blank cheques where names of organisations which the inspectors feel like raiding can be filled at will. There is no use complaining as the system is corrupt from top to bottom. Even if there is an honest officer at the top the others will not let him function.

Liberalisation has in no way altered the inspector-raj menace. They are not ready to relent their power. They keep away from the powerful but the moment they see someone weak, they pounce on him and trap him in their web. So, for an average businessman, the situation is square one. Collective action is really not possible due to the existence of various lobbies owing allegiance to various circles. Even if it is successful then those in the core can derive the mileage out of it leaving the others in the same state.Factory owners violate laws and inspectors want them to do so. The vicious circle continues. More violations mean more money, whether it is now, after liberalisation, or before it. Even industrial associations cannot do much about this. For the small-scale, liberalisation means nothing. It is only more competition from the big companies without any concessions. There is no saving from the menace.

It is a false impression that inspector-raj has decreased due to liberalisation. There has been absolutely no improvement in the situation. Inspectors raid our premises regularly and if they cannot find any discrepancies they come back with a vengeance. Taking advantage of loop-holes they make us pay through our teeth. Protesting against this out of the question. Only people who want their units to be shut down can dare do that. As for organisations taking up the cause, well the fight is going on.

The menace of Inspector-raj still continues, but at a reduced level. Wherever this is relevant, it continues. Based on personal ideals, we would not like to compromise but in order to have smooth sailing, we do end up making compromises. I feel that the collective action does help. In some areas, our collective action has helped considerably. But then, the inspectors also find their own way and start operating in certain pockets.The inspector raj can only be done away with by changing the existing rules and regulations. Instead of plethora of Acts governing a business establishment, we must have only one `Small Business Establishment Act.' An entrepreneur should not be seen as a potential tax evader and wrongdoer. he should be looked upon as partner in progress.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

Syndicate Bank

Pidilite

Patel Roadways Ltd.


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