NEW DELHI, July 29: The Lok Sabha on Tuesday rejected a Bharatiya Janata Party (BJP) motion expressing concern over the Centre's refusal to take action in Bihar, as Home Minister Indrajit Gupta explained that there were no grounds for dismissing the State government.

Agreeing with the Leader of Opposition, Atal Behari Vajpayee, that the developments in Bihar caused serious concern, Gupta in his inimitable style said this was a glaring example of the abyss into which the country is sinking.

He reiterated that his government expected that important office-bearers accused in serious cases should in the interest of propriety step down. Unfortunately Laloo Yadav's intransigence complicated the situation, the Home Minister said.

One course open to the Centre was to dismiss the state government and impose President's rule and Government sought legal opinion. Both the Solicitor General and the Additional Solicitor General advised that there was no possible ground for imposing President's rule because Laloo had done nothing unconstitutional, the Home Minister added.

In his reply to the debate Vajpayee said that merely expressing concern about the developments in Bihar would not amount to much. India is the largest democracy in the world and the Central Government is supreme and people expect more than concern from the Government.

Democracy, Vajpayee said was not a mere game of numbers and Bihar is a part of the country and if anyone made a mockery of democracy the Central Government was duty-bound to take charge of the state administration.

George Fernandes (Samata) disagreed with Prime Minister IK Gujral's assertion that the Centre cannot intervene in Bihar.``Whatever is happening in Bihar is a fraud on the people of the country and the state,'' he said and maintained that the Centre has powers to act against the state government under Article 160 and 360 of the Constitution.

Detailing at length the financial havoc caused during the Laloo Prasad's tenure as Chief Minister, Fernandes said that the per capita income of people of Bihar sharply declined during the period. This by itself warranted imposition of President's rule in the state.

He argued that various official reports including the reports of the Comptroller and Auditor General showed that there was total financial breakdown in Bihar and therefore there was need for declaring financial emergency in the state.

Lal Muni Chaubey (BJP) said Bihar was passing through a period of hatred and ignorance and the measures taken by the Centre in the last four months encouraged corruption.

Pramotosh Mukherjee (Revolutionary Socialist Party) said the passive attitude of the Centre had led to the serious situation in Bihar and even after Laloo Prasad's resignation as Chief Minister, there has been no change in the situation there.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.