Yechury: spectrum scam indicates deeply entrenched crony capitalism

December 18, 2010 03:14 am | Updated November 17, 2021 03:22 am IST - KOLKATA:

Sitaram Yechury.

Sitaram Yechury.

The alleged scam in the 2G spectrum allocation, involving politicians, bureaucrats and businessmen, is indicative of a deeply entrenched crony capitalism, which ultimately “distorts” democracy in the country, Communist Party of India (Marxist) Polit Bureau member Sitaram Yechury said on Friday.

Addressing the Indian Institute of Management, Calcutta's 3{+r}{+d} Institute lecture Series on ‘Crony Capitalism-Management of Democracy,' he said the several scams in which huge sums of public money were siphoned off amounted to a compromise on the country's growth and development.

Crony capitalism, he said, patronised “nepotism, sweetheart deals, the maximum bending of established rules and ruthless manipulation of the system” to accommodate a handful of people. Similar methods were adopted in the 2G spectrum allocation. “The government bent rules and systems blatantly for a group of companies as the system of allocation was changed mid-course, allowing companies that had nothing to do with telecom to buy 2G spectrum and later sell it to MNCs at prices 9-10 times higher.”

Mr. Yechury pointed out that the money involved in the spectrum scam could have been utilised for implementing the Right to Education Act for children across the country for the next five years.

Critical of the Commonwealth Games and Adarsh Housing Society swindles, Mr. Yechury came down heavily on the illegal mining scams in several States, which caused a severe collateral damage to the environment.

“Even elections are being purchased; genuine people are ousted from the political system. Combating crony capitalism is not only an issue of morality or bringing the culprits to book, or of preventing collateral damage or cleansing the system; it is to stop the distortion of our democracy,” he said.

Replying to a student's question whether China was free from the clutches of crony capitalism given the market-oriented socialist system it adopts, Mr. Yechury said China was “extremely strict” against such practices and handed out “deterrent punishment” to offenders.

“It is not a mistake to make a mistake. But it is a grave mistake not to take cognisance of the crime committed and take action against it,” he said.

He said there “may be failings” in the Left Front-ruled States of West Bengal and Kerala since the “prevalent system breeds in-house corruption and nepotism,” but added: “there is always an endeavour to rectify it as the party has zero-tolerance of such practices.”

Parliament's accountability

Emphasising the need for a Joint Parliamentary Committee (JPC) to probe the spectrum allocation scam , Mr. Yechury said it would be in the interest of maintaining Parliament's accountability to the sovereignty of people.

“The constitutional scheme of India, the centrality of our democracy, is the sovereignty of the people, which is exercised by the Parliament — making the government accountable to it and Parliament accountable to the people. So, Parliament should be allowed to perform its assigned role while the Supreme Court does its job [on the 2G scam].”

Asked whether penal provisions should be brought in against lobbying, Mr. Yechury replied in the affirmative and said lobbying for a certain set of policies or individuals was in direct contradiction to the democratic practice of people electing their government, and such influences should not be allowed in the system.

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