Prices, graft roil economy

Court Exposes Kinks

By Shivaji Sarkar

Innocuous developments are unfolding amidst the growing fervour of the impending elections. Despite concerns of the Reserve Bank of India regarding inflation, escalating toll rates, and transportation costs, the nation finds itself amidst a politically charged atmosphere. Nonetheless, certain court rulings are adding intrigue to the evolving scenario.

In addition to the impact of electoral bonds, which have added colour to the political landscape and influenced prices, three other judgments are exerting significant influence. These include the Supreme Court’s hearings on the Voters Verifiable Print Audit Trail (VVPAT), commonly known as the voting slip; a judgment regarding the denial of payment to Reliance Infra for the Delhi Airport Metro EPL; and the severe criticism of Patanjali’s owners, who are contemnors of court orders regarding their advertising. These developments are intensifying the dynamics of the electoral contest.

Not less interesting is the Enforcement Directorate’s (ED) mounting fresh money laundering probe into Chhattisgarh liquor scam and linking Kerala CPM leaders to bank fraud. Could there be more arrests even after Delhi Chief Minister Arvind Kejriwal and Kavita of BRS in Telangana?

Will prices take a backseat to politics and court rulings, or will they remain pressing concerns alongside these factors? Voters, though reticent, are far from oblivious. Whether attending rallies of prominent leaders or not, they are keenly aware of every development that influences their lifestyle.

Conversations range from questioning why individuals with questionable backgrounds align themselves with BJP to analysing defections from BJP to Congress factions. Both voters and party members evaluate the potential implications of each unfolding event, particularly returning officer of Chandigarh municipal polls and Himachal Pradesh defections.

Corruption is not a non-issue. Arrests of select Opposition state leaders on corruption charges by central investigative agencies such as CBI, ED, and income-tax department are unlikely to change the general public perception that corruption pervades all political parties. Many view the pre-election arrest of Arvind Kejriwal as a strategic move aimed at thwarting the popular politician’s participation in the election campaign, rather than a genuine effort to address corruption.

It gores them to think that possibly price surges of many medicines and commodities or galloping rise in tolls have the electoral bond connections. Former Vice President Venkaiah Naidu’s recent remark on corruption involving all parties has given it a new dimension for the voters to rethink the extent of the impact of the malady. The rising cost of education is troubling all, be it in cities or villages.

Amidst the dropping of corruption charges against former Union Civil Aviation Minister Praful Patel, allegedly implicated in a Rs. 25,000-crore aircraft purchase scandal, questions arise as to why Delhi Chief Minister faces arrest for his alleged involvement in a Rs. 100 crore state liquor policy issue. People ponder whether the Air India sell-off was conducted transparently or mired in controversy. The action against Kejriwal has spurred Opposition unity, evident from the overflowing rally at Delhi’s Ramlila Ground.

The recent Supreme Court decision concerning Reliance Infra’s Delhi Airport Metro’s EPL has prompted questions about corporate exploitation of public sector Delhi Metro. The Court overturned its own 2021 order directing Delhi Metro to pay Reliance Infra Rs. 2782 crore, which had ballooned to Rs. 7686 crore with accrued interest.

Chief Justice DY Chandrachud, along with Justices R Gavai and Surya Kant, justified this drastic action, citing a ‘miscarriage of justice’ resulting in an ‘undeserved windfall’ for Reliance Infra. This ruling, following closely after the electoral bond controversy, has heightened voter scepticism. Had Delhi Metro been forced to pay, it could have burdened commuters with significantly higher fares.

Likewise, the court’s rejection of Patanjali’s apology in a contempt case, stemming from misleading advertisements contravening its order, serves as a stark example of how the rule of law can rectify corrupt practices, unveil false brand images, and maintain price stability. The court’s warning to be prepared for consequences, along with its criticism of the Uttarakhand government, underscores the power of legal intervention. It can impact Uttarakhand polls.

Erratic power bills and arbitrary demands in Uttar Pradesh and many states are also potential issues. Each of these cases, people realise, are instances of political linkages affecting price rise and profiteering.

The glaring lapses on the part of the executive and administration add to the woes of the people and breakdown of the law-and-order machinery. The judiciary is uncovering corrupt practices that impact economic and administrative systems, consequently contributing to the rising cost of living.

Media House Dainik Bhaskar has done a study on prices in Rajasthan. It finds that compared to 2019, prices of petrol, diesel and cooking gas increased by 42 per cent; food items cost 34 per cent more; medicine prices for diabetes and heart diseases rose by 54 per cent and people’s dining outside has been reduced by 40 per cent. Pulses have become costlier by 20 per cent, vegetables by 233 per cent; taxi fares by 67 per cent, edible oil 100 per cent, FMCG rose by 60 per cent. Salaries during the period for different classes have risen by 11 per cent to 26 per cent.

RBI Governor Shaktikanta Das has expressed concerns about the imminent return of inflation in his inaugural monetary policy commentary. The Monetary Policy Committee’s statement highlights food prices as a major worry, despite a record kharif harvest, citing tight demand-supply conditions in pulses and vegetables that warrant close monitoring, compounded by climate shocks.

The RBI projects growth to hover around 7 per cent, potentially dipping to 6.5 per cent next year, aligning closely with the IMF-World Bank forecast of 6.5 per cent growth for India. A final picture is to emerge following the release of GDP data for 2023-24 in May. The declining rupee, decreasing foreign direct investment, and imbalance in trade are further indications of prevailing uncertainties.

Price concerns persist, with numerous unnecessary infra, road airport and metro projects shocking even political workers. However, this doesn’t diminish the significance of religious fervour surrounding the Ram temple and Modi’s assurances, which remain potent issues in certain regions, albeit overshadowed by economic factors and caste considerations. Amethi and Raebareli, however, remain in focus, more than Varanasi.

The Opposition, INDIA parties, are amplifying core issues, drawing attention to the populace’s unease with unstable living conditions. While this may have tempered their beliefs, faith remains resilient. Local dynamics, candidate profiles, specific issues, and party cohesion (or lack thereof) will likely shape outcomes in many constituencies more than any single central figure. The nation stands at a critical juncture. — INFA