AAP must carry forward the struggle against crony capitalism: FIR against Ambani is the right step

AAP must carry forward the struggle against crony capitalism: FIR against Ambani is the right step

By Mukul Sinha

Capitalist democracy would inevitably bring with it corrupt politicians and a corrupt political system. Most common folks do not seem to understand this fundamental flaw of capitalist democracy. The ardent votaries of capitalism would vehemently disagree with me. While defending the capitalist system of production and profiteering, they argue that it is due to our “flawed” electoral system that all types of rouge elements enter the Government by winning election with their money and muscle power and use the Government machinery to make money. India Against Corruption (IAC) thus set out to cleanse the system of the rogue elements like Kalmadi of Common Wealth Games scam fame, Raja of 2G scam fame etc. Jan Lokpal law they said would send all such rogue elements to jail, clean up the system and every one would live happily ever after.

The anti-corruption movement which was led by Anna(2011-2012) targeted the Congress misrule and winded up the movement when the Government agreed to enact a modified version of Jan Lokpal bill. Those elements in IAC who were not just anti-congress but went beyond the saffron agenda, have already made history of sorts under the banner of Aam Aadmi Party (AAP). The issue raised in this post is whether AAP in their debut in the national politics should continue with their limited agenda of enacting the “Jan Lokpal bill” or go forward from where they left off in Delhi?

AAP has in fact made a fundamental departure from the agenda of the anti-corruption movement of Anna. The FIR filed against Mukesh Ambani, Moili and others quite consciously expands the scope of the term “corruption” from the traditional connotation of appropriating Government money in terms of bribe, kick-backs etc to rampant profiteering by big business houses like Ambanis by over-charging their customers. The FIR was registered on 11th February, 2014,Tuesday at 7.40pm, section 120-B (criminal conspiracy), 420 (cheating) and relevant sections of the Prevention of Corruption Act in the FIR.

The complaint of the FIR states that gas prices in the country will be doubled from April 1 this year due to alleged active collusion between RIL and some ministers of the central government. The complaint states:

In case this price hike is allowed to take place, it will make the life of common man miserable since it will have a cascading effect on transport, domestic gas and even electricity prices. The impact of this hike in gas price would cost the country a minimum of Rs 54,500 crore every year, and in addition to this the central government allowed the RIL to make a future windfall profit of Rs 1.2 lakh crore.

In an article reported in Business Standard, 23 Dec 2013, a former principal advisor of power and energy department of Government of India has observed that the Comptroller and Auditor General’s findings and other independent reports reveal how crony capitalism benefited RIL. RIL’s clout was on full display when the 2007 Empowered Group of Ministers approved the price of $4.20 per million metric British Thermal Units (MMBTU) based on an RIL-crafted formula ignoring the $2.34/MMBTU bid by RIL, in a global tender, for the same gas. A sham price discovery exercise was permitted to justify the higher price that the approved formula delivered.

The real contradiction that is responsible for the poverty and miseries of the Indian people is not just the corrupt political establishment but the crony capitalist class that preside over the economy of the country. In fact, crony capitalists cannot exist without the corrupt political establishment and vice-versa. Parties like BJP and Congress are the agents of this class of super-rich capitalists who profit by manipulation of import export duties, excise, pricing and appropriation of Government properties at throw away prices. Their hold is so strong over the Governments of the Centre as well as the State, that a handful of business houses can get away with any government policy that profits them. AAP is thus in the right track and once they campaign in Gujarat they will notice that the real Capital of crony businessmen is not Delhi but Gandhinagar. Modi is the darling of the crony capitalism of India.