AAP – No more the messiah of the ‘Mango People!

Year 2015 - assuming AAP comes to Power in India

Army Chief’s SOS to Prime Minister AKji - Sir, we have information from the Intelligence Bureau that our neighbouring country is planning an attack in the next 24 hours.

AKji - Oh no.  Tell them to hold on.  We need to conduct a referendum through our website / Facebook /Twitter/ WhatsApp / other social media and ascertain public opinion on this. We will need 3 days and tell them to wait.

Army Chief (replies in astonishment) - Err… Sir,  that may not work. It is a war situation!!

AKji - Oh!  What do we do now?  How is the situation with our nuclear arsenal if the public feedback approves of such usage?  Can we keep it ready?

Army Chief - Of course sir. But we don’t have power supply to use the nuclear weapon as the suppliers are going through a CAG audit and they have also refused to supply power till we pay them.  Besides, the head of the unit is on suspension pending an enquiry being conducted under by the Jan Lokpal. We have been given to understand that this position is vacant since an honest, qualified person has not been found so far.

AKji – Yes, yes! I remember!  He was the one who shares his surname with that big industrialist and we strongly believe that the industrialist controls him.   What do we do now?  Can we speak to the Pak Army or ISI to delay this?

Army Chief (exasperated) - That won’t be possible Sir. They do not report to you.

An irritated AKji – How is that possible and why was I never told about this? What did the Congress and BJP Governments do about this over the last 60 years? I’ll do a Dharna in front of the Pakistan High Commission to protest against this and give the Pakistan Government 48 hours to pass a resolution ensuring their Army/ISI report to me with immediate effect.  I will resign if it does not happen. Also, send 15 questions to Pak Army Chief, seeking answers in 24 hours.  Else, it will be clear that he is corrupt.

Army Chief (aghast) - Yes sir! But how will sending questions, sitting on a Dharna and proving that the Pakistan Army is corrupt help us in the situation we are in, an impending War!!

AKji - Arre… don’t you get the point?  Once they pass the required resolution, I can order them not to attack. If they don’t pass, I’ll resign. If the Pakistan Army Chief does not reply, it is clear that he is corrupt.  Let us get an auto rickshaw to go to the nearest Metro station and from there to the Dharna venue.  (AKji calls his press secretary and says) - ensure that the entire media is alerted about my rickshaw travel and metro travel. Where is my muffler!

Army Chief fainted…………...

What has happened to India? Nothing yet, considering this is only a highly exaggerated imaginary situation!

This piece (of my mind) is in no way an attempt to point fingers at AAP and its credibility or the intelligence of its leader.  If I had a vote in the Delhi assembly elections, I would have definitely voted for the AAP as their intention was quite promising. However, as an AAM AADMI, I feel dejected looking at their naïve and immature way of handling of things.

Running after Referendums:

Looks like the party has collectively failed to realize that people vote and elect representatives because they don’t have the intelligence or time to govern. A leader is expected to be decisive and lead but if the leader keeps going back to the public in the name of referendum (through their websites and social networking sites which form a small percentage of public), it leads to nothing but chaos and delays, Imagine this: if this trend continues, the day isn’t far when each home could have a voting machine installed for the mango people to have their say on policies and issues!

Focus on 'what's not possible' rather than 'what's possible' 

Can choosing a lost cause and quitting be termed a success? I am not a political analyst, but it is elementary that with the numbers AAP had in the Delhi Assembly, passing the Jan Lokpal Bill was a non-starter from the beginning.  The chances were as bright as an Indian football team winning a FIFA World Cup! AAP garnered public support by convincing the Aam Aadmi of how corrupt the Congress, BJP or for that matter every other political party was (incidentally, both the Congress and BJP never denied they have corrupt leaders; but their defense was that the other one is more corrupt). During their short stint at power, the party sounded redundant as they kept on singing the same tune without doing anything about it.

Instead, they should have grabbed the opportunity and proved a point to the world of what they were capable of by completing the term or rule Delhi for couple of years.  Efficiency is as important as honesty! There was plenty of opportunity to clean up a whole lot of things (streamlining power distribution, water supply, school admissions, development work etc., to name a few). Jan Lokpal, though important, is not the only issue. Jan Lokpal is necessary and they could have sent it to the Central Government and blamed the Congress. I am sure the AAM AADMI is smart enough to understand that a one- year-old party can do only so much. On the flip side, the feeling one got during the short AAP tenure was they somehow wanted the Congress to withdraw the support.

Of Press Meets, Dharnas and Accusations…

After a point, TV Noise, I mean News Channels were nothing but AAP TV! All they did was call for press meets and accuse someone or the other of corruption.  The debate here is not whether the people accused by AAP are corrupt or not? The point is what purpose did it serve? Most of AAP’s tactics of free power and waivers are nothing beyond populous politics – something similar to what a state like Tamil Nadu followed – dolling out freebies without worrying about the long term impact to the exchequer.  Yes, they managed to hold Delhi to ransom by holding a dharna, resulting in sending few Delhi policemen on leave.  No one knows what happened to these policemen who went on leave. Did the people of Delhi benefit from this? The answer is a vehement NO!  Strangely, when they consulted the people on forming the government, they did not do so while quitting!

They should also realize that the MY WAY or the HIGHWAY Approach does not work in a democracy.

Just like that light at the end of the tunnel, I hope the AAP gets a little practical and sensible. They have definitely lost their head start that is wading but still promising, at least in the cities.  To add to that, if they fail to win a few seats, they will face a humungous task of keeping their high profile members together as most of them are corporate leaders in their own right and for them, dovetailing will be difficult.

On a concluding note, what comes to my mind is Abraham Lincoln’s quote “Nearly all men can stand adversity, but if you want to test a man's character, give him power”. Does it not reflect the current picture of AAP and a faltered one at that!  

Why I may choose to not get on board Chennai Express…

Dear King Khan,

I have been an ardent fan of your work all along, watching your movies. Be it your misfires like Guddu, Dil Aashna Hai or Badhshah to all your blockbusters or even the recent lukewarm flicks like Ra.One and Jab Tak Hai Jaan… 

However, I cringe to say that this fan might just skip your latest masala-Rohit Shetty-shtyle take on cinema in the South. The reason may be a mere assumption or a gut feeling that you, along with Rohit Shetty are out there on a mission to spoof Tamil Cinema and expect high praise and applause!

I have to admit that I don’t know the premise, story or the director’s so-called vision for this movie. Having said that, the promos easily give an inkling of what’s in store. We all know your history and histrionics at taking a dig at south Indian cinema and their characters (the ‘enna rascala, mind it’ shenanigans in OSO or the ambitious Ra.One where you play a south Indian father and mess up the character royally), giving me all the more reason to fear the look and feel of Chennai Express. Incidentally, being a south Indian, I haven't come across the terms 'enna rascala' or 'mind it' outside of your movies.

Traditionally, south Indian characters were stereotyped in Hindi Movies, be it Mehmood in Padosan or Mithun in Agneepath, and now Chennai Express is giving more than mere hints (through Deepika’s dialogue delivery, the lungis, the fat goons and the likes) to take this stereotyping on a larger scale. What is interesting to note is that actors in your league (the likes of the Dabangg Khan, Aamir the perfectionist, or Rowdy Kumar) have all done movies inspired by the south, paying homage of sorts, but never once caricatured them and gotten away with it!

Your version of South Indians is quite different from what it really is.  I have come across two online articles and strangely, both are inspired by your movies.

http://www.firstpost.com/living/yenna-rascalla-south-india-for-non-madrasi-dummies-985309.html?utm_source=hp-footer

&

http://heartranjan.wordpress.com/2011/11/10/the-world-of-south-indians-according-to-shah-rukh-khan/

My heart skipped a beat almost when recent news reports confirmed of a “tribute” to superstar Rajnikant through a music video titled ‘lungi dance’ by an uncanny combo of yours with Honey Singh. I wonder if this should be called a master stroke in marketing or a disaster in waiting! Why in heaven’s name Rajnikant would need an endorsement of any kind from you, still worse, from Honey Singh??!!

Let me set the record straight. I am an avid movie buff; watch every kind of cinema and my views do not in any way reflect the quality of Hindi movies. With your by now infamous well oiled promotion strategy well in place and the  songs topping the charts,  it is a no-brainer that Chennai Express will make its way to the blockbuster club (which strangely is Rs.100 Crore nowadays without giving any weightage to the cost of production).  But I would prefer not to 'get set po'  and be content with the fact that I did not contribute  to the impending atrocity!

Off late, I can see your sincerity turning into desperation for a blockbuster. But please don’t look for shortcuts like Chennai Express!  You should know that there is a sea of difference between paying a tribute and making a caricature of something. 

While I choose to miss the train this Eid, I am confident that the screen will once again light up with another memorable portrayal, just like the innocent Sunil from Kabhi Haan Kabhi Naa or the flirtatious Raj Malhotra from DDLJ, the confused yet determined Mohan Bhargav from Swades or the intense Kabir Khan of Chak De!

Hope you scorch that screen again for your fans!

-         A humble fan from south India!

Kamal’s Wish-waroopam!

I have, in the past, expressed my thoughts on the entire mockery of the Censor (now Certification) Board, censorship issues and its seriousness when the Amitabh Bachchan-starrer Aarakshan went through a fate similar to Vishwaroopam. While the thoughts and irking remains the same, the tamasha played out and the hardship of one of the most respected entertainer in the country made me revisit the issue.

To put things in perspective, Vishwaroopam is a well-made slick entertainer, easily comparable to international standards. To quote a review from firstpost.com – ‘Perhaps this is the first time that Kamal looks justified in his life-long obsession with the technical flourish of Hollywood’.

Does it offend Muslims? Since the plot is about an Al Qaeda attempt to explode a bomb and the protagonist’s mission to prevent it, the filmmaker ended up showing their background, training methods etc.  Unfortunately, Al Qaeda has Muslim members and they could not have shown that differently. Yes – the film could have possibly offended Jihadis and I am sure the protesters were not Jihadis.  In fact, there is a scene in the film in which the protagonist offers prayers (namaz) before he goes for the final kill. Should they not be happy as the story is about a good Muslim who takes on terrorists? 

Why did they protest? My answer is simply another question – why did they not protest vehemently in other states as they did in Tamil Nadu? Are the Muslims in Tamil Nadu different from Muslims in other States? The answer lies in the fact that Kamal gets hurt only if this movie not released or delayed in Tamil Nadu.  The impact won’t be much if it is banned elsewhere. For the record, Kerala, Karnataka and Andhra Pradesh have more Muslims in terms of numbers as well as percentages as compared to Tamil Nadu.

Logic behind the ban?  While the reason behind the ban in itself is debatable, what was amusing is the ‘significance of 2-week ban’. What would have happened if Kamal has not gone to High Court?  Could he have released the movie after 2 weeks?

Did protesters achieve anything in the entire process? No, would be my answer considering cutting less than 10 minutes does not change the concept. On the other hand, the movie got huge publicity in northern India and had a decent opening for its Hindi version, which would not have happened otherwise.  However, the real reason behind the protest still seems extremely unclear to me! 

Do we need a Censor Board?  In spite of the Supreme Court’s decision on ‘Aarakshan’, which stated that the UP government had no powers to suspend screening of the film on the ground that it may cause breach of peace, States continue to hold filmmakers for ransom. The latest we hear is that the Centre has set up a committee to revisit the Cinematograph Act and recommend measures to enable the Central Board of Film Certification (CBFC) to deal with “contemporary requirements of certification”. I am certain all of us would agree that the problem in hand is not the way films are censored or the lacunae in Cinematograph Act. The problem is the harassment created by fringe groups and the onus of States to protect their filmmakers. 

Click on image to see a satirical take on
future film certification, doing rounds
on social networking sites

On a lighter note, the Committee should look at having members from all religions / castes in the censor board.  Yes, protests can emerge even from sub-sects within these religions / castes! How can we solve that problem? It’s simple - by increasing the number of members to accommodate all of them. Or – why not reservation in the censor board also so that everyone is represented!  Another option would be asking the filmmakers to show the movie first on Doordarshan and give time to viewers to object. After addressing all the objections, the film can be allowed to release. It might take a few years or it may never see the light of the day at all. But how does it matter, after all peace and harmony is solely dependent on the kind of movies being made!

Looks like these things are here to stay as the latest we hear is some Christian groups protesting against Mani Rathnam's  Kadal…… which just hit the theatres.

Why do I think India is backpedaling?

While there are quite a few reasons to this, the one reason that can be singled out (and also the one that made me think this way) is a Constitutional Amendment passed by the Upper House of the Parliament today, which is, The Constitution (One Hundred Seventeenth Amendment) Bill, 2012.

This particular bill seeks to amend Article 16 (4A) of the Constitution of India, to enable the Government to provide quotas in promotions for the Scheduled Castes and the Scheduled Tribes. 

To understand the background of this charitable backward amendment, read: http://www.prsindia.org/billtrack/constitution-one-hundred-seventeenth-amendment-bill-2012--2462/

Clearly evident in the aforesaid background for this amendment, whenever the court struck down any law, the legislatures were quick and alert to immediately change the Constitution with unanimous voice and complete absence of debate on the floor. 

At the cost of getting slightly technical, let me try and analyze relevant parts of Article 16 of the Constitution:

Article 16 (1) – There shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State.

(By this proposed amendment, the purpose of this article is being defeated as there is discrimination against people who are not SC/ST)

Article 16 (2)– No citizen shall, on grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them, be ineligible for or discriminated against in respect of, any employment or office under the state

(The bill being passed today does the exact opposite)

Article 16 (4A) - as it read now: -Nothing in this article shall prevent the State from making any provision for reservation in matters of promotion, with consequential seniority, to any class or classes of posts in the services under the State in favour of the Scheduled Castes and the Scheduled Tribes which, in the opinion of the State, are not adequately represented in the services under the State.

Proposed Amended version of Article 16 (14A)

“(4A) Notwithstanding anything contained elsewhere in the Constitution, the Scheduled Castes and the Scheduled Tribes notified under article 341 and article 342, respectively, shall be deemed to be backward and nothing in this article or in article 335 shall prevent the State from making any provision for reservation in matters of Promotions, with consequential seniority, to any class or classes of posts in the services under the State in favour of the Scheduled Castes and the Scheduled Tribes to the extent of the percentage of reservation provided to the Scheduled Castes and the Scheduled Tribes in the services of the State.”

Now, what does Article 335 say:  The claims of the members of the Scheduled Castes and the Scheduled Tribes shall be taken into consideration, consistently with the maintenance of efficiency of administration, in the making of appointments to services and posts in connection with the affairs of the Union or of a State

In effect, the slight restraint in the form of term ‘efficiency of administration’ is being done away with by over-riding the provisions of article 335.  

It’s an all out effort to please the vote bank at the cost of efficiency which was built-in through article 335. SC/ST gets quota even in promotion without being efficient to the administration or the country.

While I agree that there is nothing new as promotions in reservations for SC/ST, what is being done is giving sanctity to the whole thing.  Earlier, The Supreme Court while deliberating on the issue of validity of Constitutional amendments in the case of M. Nagaraj Vs. UOI & Ors., observed that the concerned State will have to show in each case the existence of the compelling reasons, namely, backwardness, inadequacy of representation and overall administrative efficiency before making provision for reservation in promotion. 

If you read the statement of objects and reasons for the proposed amendment, which reads as ‘There is difficulty in collection of quantifiable data showing backwardness of the class and inadequacy of representation of that class in public employment. Moreover, there is uncertainty on the methodology of this exercise”, it is clear that the amendment is to bypass the Supreme Court direction and have an impediment-free reservation in promotion to SC/ST.

We are all for helping the under privileged, but should it not be restricted to provide them free education as long as they want to study and necessary infrastructure?  Why in job and then in promotion too?  Continuation of reservations even after 50 years of independence in itself is proof enough that the strategy of uplifting the under privileged through reservations has not worked.

This in all probability seems far more dangerous to the country than the highly debated FDI in Retail Bill and the never ending debates. This particular bill, which many term as quid-pro-quo between UPA and BSP for BSP’s support for FDI in Retail, is going to do more damage and deteriorate the country’s fabric in the long run compared to FDI in retail.

Alas! We can’t change the way politicians function.  For me, this is the most backward of bills passed in recent times.  Did the parliamentarians debate this? Yes, for some cosmetic changes and most parties were for this.  It was passed with an overwhelming vote of 206 in the 245-member House. The people who voted against had a more draconian demand – to make ‘Muslims’ also eligible along with SC/ST.

I also recommend Arun Shourie’s “Falling over Backwards: An essay against Reservations and against Judicial populism”, for anyone who is keen on some insight into this disastrous trend of RESERVATIONS.  
Read more at http://www.indianexpress.com/news/affirmative-activism/989733

End of the day – it’s all about votes at the cost of efficiency, growth and development! 

Miscellany…

Here's my take on some issues that made for eye-grabbing headlines, expressed in no particular order...

The End of Kasab!

How does it get any better any than this! Not the hanging in itself, (which, in my humble opinion is overdue) but the manner in which he was executed.  It is difficult (and rather disastrous to imagine the kind of circus the media would have indulged in had there been a prior notice). The fourth estate would have gone berserk as always and the issue would have ended up being trivialized. End of the day – it was good riddance of bad rubbish without media intervention for once!

The Aam Aadmi Party!

Mr. Arvind Kejariwal (messiah of the ‘mango’ people) has arrived with his party for the people, by the people and of the people, christening it as the “Aam Aadmi Party”!   

Rewinding a little, the events prior to the launch of the party have urged me to think that news channels should now have a separate corruption bulletin, something on the lines of a “SportsCentre”, “World of Sports”, or “Weather Update”. The said special can highlight the day’s exposé, a status on the last few exposés and so on. Throw in a Top-10 of Exposés as a highlight and interested people can keep tab, while others can stick to regular news! There is some reprieve these days considering these revelations have slightly lost their steam!  

 

If it sounds absolutely cynical and irresponsible to make the issue of corruption look trivial, that is certainly not the intention. Corruption is an ultimate evil and needs to be addressed. The point that I am trying to ascertain is that the aam aadmi is beginning to lose interest in these “startling exposés”, considering they are going nowhere besides ‘Breaking News’ on TV. It is not front page news anymore, none of these seem to reach a logical conclusion and the ones named in them are not going to get hurt, barring, maybe, minor electoral setbacks. 

What I think is being missed in this ‘press-conference-driven-system-clean-up-act’ is, we Indians are almost used to corruption and there is no element of shock or surprise to this.  Probably one of the sensible comments was made by a Union Minister was when he stated that the amount mentioned in a so-called scam was too low for a Union Minister to get involved in.  While he may have defended himself (read clarified) later by saying he was misquoted, but come to think of it, what he said made perfect sense and I’m sure the majority public agrees with him. Public is already of the opinion that such things are a part and parcel of politics and “yeh chota mota corruption toh chalta hai boss”!!  

What the Aam Admi Party could rather do is focus on what they can offer other rather than mere exposés. At the end of the day, you do need capable people to run government not just clean people!

Parliamentary functioning!

What amuses me is the childish behavior of politicians, especially the so-called Opposition. In India, Opposition takes the word ‘opposition’ a bit too seriously – they HAVE to oppose everything.  It is understood that there are few contentious issues, for instance ‘FDI in retail’. Why can’t they conduct regular business and agree on agreeable things like passing a simple economic legislation like Companies Bill? Why stall the functioning of parliament for an issue which they don’t have a consensus on or rather an issue on which they don’t want to have a consensus on?  It’s funny but that’s democracy for you. Latest is the opposition wants two separate voting and discussion on same issue of FDI in retail.  It is hard to imagine the time that gets wasted and of course, the taxpayer’s money.

Tendulkar and the ‘R’ Word!

Disclaimer – like the millions of other Indians, I also like Tendulkar – but the way things are unfolding is nothing but disappointing.  To see THE MAN struggle and allowing every Tom Dick and Harry (including me) to debate on his calling the shots is appalling. Let’s hope he goes out on a high and not like this.

Indo-Pak Cricket Diplomacy! 

In spite of a thousand debates on this, it still does not make any sense.  The only beneficiary of this is the BCCI considering the moolahs they get to make from this one. As we all know, cricket diplomacy has not helped the two countries improve their ties in any way.  It’s just a gimmick.  And yes, India and Pakistan have been playing against each other on other tournaments, which should be enough to cater to a cricket fan’s appetite.  We are under no moral responsibility to revive or help Pakistan Cricket by offering to play a series with them.  The only outcome can be some law and order problem in the country which, we have in plenty anyways!

The Sahara Saga!

Another news making headlines these days is the Sahara saga.  To re-capitulate, Sahara Group has raised huge sums through issue of OFCD (optionally fully convertible debentures) and it is alleged that they violated several statutory provisions of Companies Act and SEBI regulations. Strangely, while the whole world knows Sahara gets funds by running these finance schemes, SEBI got to know about this only when the group initiated listing of two of their companies and filed prospectus with SEBI.  The concern here is the OFCD issue through which the funds were raised were actually cleared by the Registrar of Companies and it appears that they are not being held responsible in any way for this mess!

Apart from the legalities, I happen to read an interesting piece on how companies like Sahara succeeds in an article titled ‘Why the poor are willing to hand over their money to Sahara’ which is worth a read…

http://www.firstpost.com/business/why-the-poor-are-willing-to-hand-over-their-money-to-sahara-438276.html

A few more thoughts in a probable Miscellany 2!! 

ABSURD…… Is that the right word?

Free mobile phones to every BPL (below poverty line) family with 200 mins of talk time p.m.!

If things go well (for the UPA and disaster for the nation), that’s how the beleaguered UPA attempts to woo the voters. The scheme is supposedly termed 'Har Haath Mein Mobile’ (a mobile in every hand). 

Would admit – that’s some kind of innovation even for the ‘been there - seen all Indian public’.  





 UPA is trying to take the nation the Tamil Nadu way where ‘free’ was the key word in last few elections.  DMK started with free TV and AIADMK followed by offering mixers/ computers etc. free.  Disaster is a mild word in these kinds of situations.

There has been a lot of debate / shows on ‘cash for vote’ during election times (of course by the media for the media).   What is striking is how this is different from ‘cash for vote’.   The minor deviation is ‘whose cash’.  Here it is the tax payer’s money.  If the idea is to grab votes… why not from their party fund?

See the timing.  We are looking at a general election due in 2014 and  this weird benevolence will take its own time and may fructify only in 2013.  Voter’s memory will be fresh and what more can the UPA ask for!  A bulls-eye! 

Consider the economics of this benevolence which is estimated at Rs.7000 Crores.  Isn’t it peanuts compared to a 2G scam /coal-gate / CW scam and the list goes on.

The only saving grace, if it’s not posturing… is the report that the Finance Ministry is not keen with this proposal.  



I somehow feel that the whole thing is ‘absurd’ and that’s why that word is in the title of this blog.

Oh I forgot......... What about ‘ROTI, KAPADA AUR MAKAN’.  

Come on… thats no big deal when you have a mobile phone and 200 minutes of talk time per month.  ho jayega.......

The Ghost of Dematerialisation!

The attempt here is to capture how the self proclaimed small ‘shareholders’ take Corporate world for a royal ride! I am in no way advocating that Companies are good and the shareholder is bad or vice versa.  It is just that the lawmakers left a big hole, intentionally or unintentionally, on a sensitive issue of corporate governance, which has been exploited by a set of people.

Since this is an academic write-up, I’ll start with explaining the term dematerialisation or demat!

Dematerialisation or Demat: It is the system through which shares in a Company are held in an electronic form. Unlike olden times, you don’t get a share certificate. Instead, what you get is a statement evidencing the title of your shareholding in a Company.

Where it started:  The Government of India promulgated the Depositories Act, 1996, which enabled a shareholder to hold shares in electronic form against the traditional physical share certificates. The intention was perfect and it worked well to revolutionize the securities market. All those litigations arising out of bad delivery, delay in transfer of shares, long book closure periods etc. became the thing of past. It also saved lot of money for shareholders as there is no stamp duty on transfer of shares in electronic form.  Awesome progress all in all!

In the year 1998, Securities and Exchange Board of India (SEBI) abolished the concept of market lot. Hitherto, shares were to be bought / sold/ held only in market lot which was traditionally 50 shares or 100 shares. To popularize demat and also to widen investor base, SEBI came out with these reforms, which was initially extended to 31 scrips and later extended to all scrips trading in demat form. 

What did it do: Unscrupulous shareholders started buying 1 or 2 shares each of Companies and strangely, as the law stands today, they are entitled to the same rights as that of any other shareholder with few exceptions? From here began their journey of harassing Companies.  What helps them is the existing archaic Companies’ Act.  Without quoting the sections, it gives them power to inspect a Company’s records, seek copies, move resolutions to remove directors, etc.  Yes, they can also move court against scheme of arrangements / amalgamations etc.

What is happening now: These unscrupulous shareholders harass Companies by making unreasonable demands; the ulterior motive is black mailing and in turn, money-making, and unfortunately, most Companies end up falling for it to buy peace! They threaten Companies by moving a resolution to remove a director, seeking all kinds of documents in the name of corporate governance. The regulators are blissfully silent on this whole issue.

Economics of this misuse: Let me try and put this across through a hypothetical situation.  Say, a shareholder holds 1 share of Rs. 10/- in a Company. To send an annual report to a shareholder who has not provided his/her email id, the Company has to incur at least Rs.30/- (a conservative estimate for printing / mailing).  The trend is, most of these shareholders ask for physical copies for reasons only known to them. Worse, if the Company decides to declare a dividend – say 15%, which is Rs.1.50/-, they have to incur at least Rs. 5/- (mailing of warrant if there is no bank mandate and if there is a bank mandate, mailing intimation about payment of dividend). There are instances when these warrants of Rs. 2/- or Rs. 3/- comes back to the Company for revalidation as the shareholders forget to present them within the stipulated 3 months time. Yes, last year, the Ministry of Corporate Affairs allowed sending communication to shareholders through email. But the catch here is providing email id is not compulsory. Further, sending the reports/ notices through email also has a cost attached to it since the Registrars charge for emailing.  The question is, whom are we serving and how does this madness qualify as corporate governance? Imagine the plight of a Company like Reliance Industries which has around 34 lakh shareholders out of which approx. 33.50 lakh shareholders hold shares that are worth less than a lakh each of rupees in nominal value!

The magnitude of this wastage is not known. Maybe it would be a good idea to ask Companies to disclose expenses incurred on servicing shareholders.  Or should we call it ‘governance’ expenses’.

What happens in a Shareholders meeting:  The scenes witnessed in a typical shareholders meeting are really pathetic. I have had the sad privilege to attend general meetings of several Companies in the last decade and without exception, what happens in a shareholders’ meeting is nothing short of a ‘circus’. These small shareholders land up at the venue to gobble the gift / sweet box / refreshments / meals.  Some of them rarely enter the meeting hall. Thanks to dematerialization, they can open multiple accounts and demand whatever is given for each folio / demat account. They are rarely bothered about the Company’s financials, performance, track record etc.  Their only focus is to extract maximum mileage out of a hapless secretarial department by fighting for an extra food coupon, conveyance and the likes!  Another trend is they normally land up with their entire family including kids. With 1 or 2 shares, they also demand factory / plant visits. Without slightest exaggeration, I have stood witness to scenes as bad as “a shareholder bringing a thermos and taking tea and coffee in the same thermos”.  Of course, there are so many other cheap antics they indulge in which one can’t even imagine. 

The concern: Who benefits out of this whole tamasha? There is a huge cost in serving these shareholders. No one, except these ‘small shareholders’ who have anything but concern on how a Company runs or on the concept of corporate governance.  Why are the regulators silent on this whole mess?   In the process, is it not true that the actual idea of governance gets lost?  Without sounding like an environmental activist, what about the tons of paper being wasted in this whole exercise of sending annual reports?

Plausible Solution: Bring back the concept of market lot or set a minimum investment requirement in Companies for these privileges, i.e., it can be number of shares, amount etc. Others can always invest through mutual funds. Alternatively, curtail rights of shareholders who do not hold minimum number of shares.  i.e., set this at 100 shares or Rs. 50,000 investment amount at least. Shareholders who do not fall in this category should be entitled to only dividend, not even an annual report or attendance in a shareholders meeting. This eligibility setting is not a new concept; the Companies Act has this provision when it comes to eligibility to demand a poll.  A shareholder or group of shareholders should have 1/10^th of the total voting power or must hold shares worth Rs.50,000 to demand a poll. Also, make email id compulsory for a depository account. Regulators can also look at setting up investor centres at major cities where annual reports of all Companies can be provided for reading or should I say ‘analysing’. 

Caveat: I am not advocating that Companies are angels! I firmly believe that if a Company is indulging in unethical activities, it should be punished without exception.  But that should be the job of the regulator and there are enough laws that provide them the power to monitor and penalize. It is far from sensible to leave a Company at the mercy of a bunch of people who has not interest in a Company’s welfare.

On a Concluding Note: What I have listed here today is merely wishful thinking.  As it stands today, in India, the Government acts only on issues which would tend to hurt them or majorly due to the coalition push.

On a lighter note, may be if a coalition partner raises the issue as a condition for support, there could be some action.  Till then, we have to live with this menace.

Populist Politics or National Nautanki!

The Railway Budget 2012 – that’s what triggered me to put down my thoughts after a long time.

To summarize, India’s Railway Minister Dinesh Trivedi of the Trinamool Congress (TMC) presented the Railway Budget amidst heaps of couplets and poetry! To recapitulate, this was a portfolio held by his Party Chief and TMC President (‘owner’ would be a better word) Mamata Banerjee for past few years, till her party won the assembly election in West Bengal and she chose to become the Chief Minister.

The budget had the following broad elements:

Passenger fares increased marginally. The increase will be by 2 paise/km for suburban and ordinary second class; 3 paise/km for mail/express second class; 5 paise/ km for sleeper class; 10 paise/km for AC Chair Car, AC 3 tier and First Class; 15 paise/km for AC 2 tier and 30 paise/km for AC I. Minimum fare and platform tickets to cost Rs.5.

As per statistics, hike in railway fares has happened after a gap of 9 years. What makes me wonder is; is there anything in this country that has not witnessed a price hike on a regular basis? Be it diesel, petrol, LPG, auto, bus, taxi, air fares, movie tickets, tax rates, electricity, water tariff, and the list is endless, so much so that I can dedicate a whole new blog-post on it!

While that was merely a recollection of facts, what left me rather intrigued were the developments that followed the budget presentation. Mamata Banerjee is seeking replacement of Dinesh Trivedi, for the hike is not acceptable to her party and shocking as it may sound, she claims that she was unaware of the budget proposal involving a hike! Yes, the Railway Minister also confirms this……How dramatic can a nautanki get in this country! Congress is obliged to replace him as it is a demand from the chief of an important 'ally' (for whatever it means). This is the same lady who is seeking an amendment to the President address to the Parliament after she had a chance to review the address. Poor Congress, which already looked lost and helpless, especially after the UP fiasco, is as usual, in a fix and loss of words!

Are we, the commoners, expected to believe that the Railway Minister presented a budget which was not approved by his party Chief?

Well, if that is the case, the verdict is out – Shri Trivedi is a "fit and proper person" to be the Prime Minister of India.

Hail the nautanki, the drama and the populist politics! Jai ho!

Oh Darling! Yeh Hai India!

Today’s news and events are truly fitting to this title, which is borrowed from Ketan Mehta’s ’95 satire starring SRK. The latest diktat from the Election Commission, the “Operation Cover-up”, to ensure several huge statues erected by Mayawati (her own, Ambedkar’s, Kanshi Ram’s and of course hundreds of elephants) ahead of the UP elections, has raised many an eyebrow! While this news splashed across the media and the virtual world, all I could think of was “Oh Darling…. Yeh Hai India!! I mean where else can one witness such antics other than our very own I-N-D-I-A…

Think of this – all these years, the state exchequer was used to build and erect various parks and statues. In the land of countless laws with and without purpose, we failed to find a law that could stop this massive wastage of tax payer’s money. It is reported that more than Rs.2500 crore was spent on projects of five parks and memorials in Lucknow between 2007 and 2009. There were even cases filed in the Supreme Court against raising these ‘memorials’ – as they call it. Yet, it is mortifying to see that no one has been able to stop this wasteful expenditure. Today, out of the blue, the Election Commission wants to cover all these humungous statues with their burqa!!

Now, the ‘cover-up’ situation at hand has become a logistical nightmare for the government authorities. Once again, the government money is wasted on this exercise and it would not be an uphill task to imagine that this clothing exercise will not be anything but futile. For me, and I would presume it is human nature that a closed or covered piece generates more curiosity than an open one. So why bother to cover it up now? Are we not giving more publicity to this ‘statue politics’?

The question at hand – what happens to these statues if the BSP does not return to power? And what happens if they do?

Last heard was a Public Interest Litigation filed in the Lucknow High Court stating that Elephant is a religious symbol and hence ‘burqa-fying’ elephant statues should be stopped.......... What an Idea Sirji!

On an exaggerated note, I was thinking out loud – Are we looking at a situation of arranging over 200 million (which is the estimated population of UP) pairs of gloves to cover all Hands/Palms in UP (because this happens to be the symbol of the rival Congress)? Covering of the ‘Lotus’ and other party symbols will be child’s play as compared to this mammoth task in hand.....

The Glove-making Industry… are you listening?

Welcome to the greatest cover-ups of all times........It happens only in India! Jai Ho!