Should business lobbying

be legalized in India -
Implication on business?
To consider whether lobbying should be legalized in
India ,we must consider the following :

• 1.Indian democracy is a multi party one and these political parties represent diverse views
and cater to different sections of the demography.
• 2.Indian Constitution does not provide any support to such activities as does US
constitution.
• 3.Any payments made to the public officials is illegal under Prevention of Corruption Act.
• 4. A 14 point code of conduct is applicable for  Members of Rajya Sabha, which provides
that:
• “Members should always see that their private financial interests and those of the
members of their immediate family* do not come in conflict with the public interest and if
any such conflict ever arises, they should try to resolve such a conflict in a manner that the
public interest is not jeopardised. “
Contd..

• 5. The Supreme Court of India has not seen lobbying as a acceptable activity.In one of the
most infamous lobbying case involving a lobbyist Nira Radia ,Justice G.S.Singhvi remarked
• “Radia's conversations reveal deep-rooted malice by private enterprises in connivance
with government officials for extraneous purposes,” 
• 6. As enshrined in the Directive Principles of the State Policy ,India is a welfare state
where well being of the people at large is of paramount importance.
As a business manager what is your
stand/opinion/solution regarding the legal issue?

• As a business manager it is important that the Corporates do influence the legislative and
executive process because no business can thrive without favourable legislation and
suitable executive actions.
• However it is not always and only through a legalised lobbying. The following options may
be considered for considering the industry opinions in the legislations.
Contd..

• A wider and comprehensive discourse may be initiated at the draft and subsequent stages
of the legislation process.
• A panel of industry representatives along with legislators may study legislations across the
world and analyse how the industry can best benefit from a legislation.
• Industry should develop and strengthen their associations who take up the cause of
legislations for specific industry.
With legalised lobbying and corporate lobbyists, it is possible to get a
favourable law framed but in a Westminster form of democracy like India
,where there is much diversity of political ideologies and the government
enjoys majority in the lower house, the next government may overturn it.
Therefore, it is necessary that legislations are enacted through a wider
dialogue rather than Corporate lobbying.