Nation PARLIAMENT
Another Lok Sabha member, pursuing their own businesses rather Tamil Nadu educationist M. Thambi
Business of
By Shafi Rahman
n the last session of the Lok
I
Sabha, TDP member from
Khammam, Andhra Pradesh,
Namma Nageswara Rao, raised
THE DAY
a question related to highways.
“Whether the Government pro-
poses to start eight-lane express
highways. If so, the details thereof
along with the locations,” he quizzed
the minister for road transport and
Conflict of interest becomes a serious matter of highways. It can be passed as one of
the dreary queries in Question Hour,
parliamentary ethics as more and more businessmen until we look closely at the member.
and industrialists pack influential House committees Nageswara is not your ordinary MP.
A non-executive chairman of Madhu-
con, his group has the National
Highways Authority of India (NHAI)
on its client list.
SAURABH SINGH/www.indiatodayimages.com
Sambasiva Rayapati Rao (Congress),
with interests in tobacco and
the construction sector, sought the
Government views on the hybrid
model in highway projects, which al-
lows concessionaires to collect toll. On
another day, the tobacco industry took
priority, when he wanted to know
whether the Central Tobacco
Research Institute is exploring “the
beneficial uses of tobacco”.
Some members are participating
in parliamentary debates, raising
questions and enjoying membership
of the all-powerful committees with-
out giving the nation much chance
to know about their personal inter-
ests. Parliament debates make many
wonder whether the members are
Over a third of
the members of
the Standing
Committee on
Industry—nine
out of 26—are
from business
and industry.
than issues of national interest. The
conflict of interest is difficult to detect
without a strong parliamentary
mechanism to define interests and
oversee the growing number of legis-
lators with business interests.
Parliamentary committees are
where the real “conflict” can take
place. The 31-member Standing
Committee on Finance is virtually an
industry who’s who—venture capital-
ist Rajeev Chandrasekhar (Indepen-
dent) from Karnataka, chief-minister-
hopeful of Andhra Pradesh and
business magnate Y.S. Jaganmohan
Reddy (Congress), Maharashtra-
based industrialist Vijay Jawaharlal
Darda (Congress), Sambasiva
Rayapati and industrialist Magunta
‘‘ Conflict of interest is a developing situation.
It has not become embedded in procedures.
There should be a mechanism to encourage the
members to declare their interests.
KARAN SINGH, Chairman, Ethics Committee
Srinivasulu Reddy (Congress) from
Andhra Pradesh. The 26-member
Standing Committee on Industry has
Uttar Pradesh businessman Akhilesh
Das (BSP) as its chairperson; perfume
baron Badruddin Ajmal (AUDF) and
Andhra Pradesh textile manufacturer
Gireesh Kumar Sanghi (Congress) are
its members. Over a third of the mem-
bers of the committee on industry—
nine out of 26—are from business and
industry. The Public Accounts
Committee boasts of members like in-
dustrialist Navin Jindal (Congress),
Andhra Pradesh-based contractor
Kavuri Sambasiva Rao (Congress) and
The number of Only 212 of the
MPs in the present 250 Rajya Sabha
House who are members have
industrialists and listed their inter-
businessmen is ests.The Lok
100—double the Sabha does not
number in the first even maintain
Lok Sabha. such a record.
Durai (AIADMK).
Parliamentary committees are not
just talking shops. The Standing
Committee system is a path-breaking
endeavour of parliamentary surveil-
lance over administration and it may
even include high-ranking officials
from the executive. The Standing
Committee on Health has at least
three members who run medical ed-
ucation institutions—Prabhakar B.
Kore, the BJP MP from Karnataka, is
chairman of the Karnataka Lingayat
Education Society, which runs 18
medical science institutions; MAM
Ramaswamy of the Janata Dal(S),
Rajya Sabha member from
Karnataka, is pro-chancellor of the
Annamalai University, which also has
‘‘
medical institutions, including a med-
ical college, and Wardha’s Congress
MP Datta Raghobaji Meghe is the
president of the Radhikabai Meghe
Memorial Medical Trust that man-
ages a deemed university, the Datta
Meghe Institute of Medical Sciences.
The 21-member Committee on
Public Undertakings (COPU) has eight
businessmen as its members. The
committee came under the scanner
when it summoned the authorities of
the NHAI and sought an explanation
about its working. Incidentally, three
of its members—T. Subbirami Reddy
(Congress), Nageswara (TDP) and
Unlike in many
other democra-
cies, there is no
mechanism to
monitor members’
conflict of interest
on a day-to-day
basis.
NOVEMBER 23, 2009 ◆ INDIA TODAY 21
 Nation PARLIAMENT

Questionable Questions MPs who are supposed to take up people’s ca uses mostly end up taking their own

QUESTION OF INTEREST QUESTION OF INTEREST QUESTION OF INTEREST QUESTION OF INTEREST

Q Whether the NHAI has Q Whether the Government Q Whether the Central Q Whether the Government
recently sought comments of vari- proposes to empower the NHAI to Government proposes to give some proposes to start eight-lane access
ous stakeholders on hybrid models to extend working capital loans to road concessions to small power units control express highways. If so, the details
implement highway projects. If so, the developers to help them tie over credit generating 25 MW of power. If so, the thereof along with the locations where the
details thereof along with the views of crunch and maintain speedy imple- details thereof; and if not, the reasons expressways are proposed, state-wise
the various parties involved. mentation of road projects. for not giving concessions. and national highway-wise.

SAMBASIVA RAYAPATI RAO KAVURI SAMBASIVA RAO RAJAGOPAL LAGADAPATI NAMMA NAGESWARA RAO
Lok Sabha, Guntur,Andhra Pradesh (INC) Lok Sabha, Eluru,Andhra Pradesh (INC) Lok Sabha,Vijayawada,Andhra Pradesh (INC) Lok Sabha, Khammam,Andhra Pradesh (TDP)
BUSINESS INTERESTS He owns the BUSINESS INTERESTS The Andhra Pradesh- BUSINESS INTERESTS He is the founder BUSINESS INTERESTS Non-executive
Jayalakshmi Group of companies based builder is engaged in construction chairman of the Lanco Group which has chairman of Madhucon, his Group has
which deals in tobacco, yarn, export of major projects on irrigation, road, interests in construction, power and the NHAI and Indian Oil Corporation on
of spices, production of electricity power and multi-storied urban property business. Member of CoPU, its client list. He is also a member of the
and construction of roads housing complexes his Group’s client list includes the NHAI. Committee on Public Undertakings.

Rajagopal Lagadapati (Congress)—
are closely involved with road con-
struction projects. The NHAI had sent
notices to Madhucon Projects and
Progressive Constructions for delay-
ing work on some stretches of the
Lucknow-Muzaffarpur road project.
While Nageswara is a member of the
COPU, Kavuri Sambasiva, founder-
chairman of Progressive Construc-
tions, is member of the Public
Accounts Committee.
The 513-km World Bank-funded
project, covering 12 road stretches in
Uttar Pradesh and Bihar, is worth
Rs 3,038 crore. Committee Chairman
Kishore Chandra Deo has now asked
them to declare their business inter-
ests, a first in the parliamentary his-
tory. The other committees are yet to
come out with any such directive.
Recently, tempers ran high in the
Rajya Sabha when CPI(M) leader
Brinda Karat repeatedly intervened,
citing conflict of interest, when indus-
trialist Rahul Bajaj (Independent)
took part in a discussion on job losses.
“For creating jobs, you have to relax
some labour and contract legislations.
Then, we in the organised sector will
give higher wages,” he said. At this,
Karat intervened saying how the in-
dustrialist could ask for “labour laws
to be scrapped”. Bajaj shot back, “We
(businessmen) have the right to ex-
press our views.” K. Rahman Khan,
the deputy chairman presiding over
the proceedings, tried to settle the is-
sue by saying, “He (Bajaj) is creating
jobs”. Khan has only good humour to
rely on, except for some wobbly rules
and conventions.
In India, disclosure of interest is
often mired in piecemeal reforms. It
has been ruled by the chairman of the
Rajya Sabha that a member having a
personal pecuniary or direct interest
in a matter decided by the House has
to declare the nature of that interest.
The Rules of Procedure and Conduct
of Business in the Lok Sabha prescribe
that if the vote of a division member
in the House is challenged on per-
sonal, pecuniary or direct interest in
the matter to be decided, the Speaker
can decide whether the vote should be
disallowed or not. The only other re-
straint is in the relatively obscure
Handbook of Members which says
that a member having a conflict of in-
terest in a matter to be decided by the
House is expected, while taking part
in the proceeding, to declare it.
In the Rajya Sabha, there is a reg-
istry that maintains members’ busi-
ness and professional interests. The
registry, a commendable initiative by
the Ethics Committee, is still not in the
public domain and only 212 of the 250
members have listed their interests.
The Lok Sabha is not even maintain-
ing the register. In the UK, a member
who has interests in a small manufac-
turing company has to declare those
when speaking on certain economic
matters concerning manufacturing
and small businesses. Back home, the
major role in livelihood in my
constituency. Many industrialists ask
somebody else to ask questions
on their behalf. I am not doing it,”
says Sambasiva.
Even the precedence of involve-
ment of members in conflict of inter-
est is rare, which may be due to
relatively fewer business interests of
members in earlier years. In the first
Lok Sabha, there were 52 MPs who
were industrialists and businessmen;
the number went up to 70 in the 13th
Lok Sabha and 78 in the 14th, and has
touched the 100 mark in the present
House. In 2003, the Rajya Sabha
witnessed a mild flutter when top ho-
telier and independent member Lalit
Suri asked then finance minister
Jaswant Singh about a proposal to
impose uniform luxury tax on hotel
industry. Singh, instead of answering
the question, chose to lecture: “The
convention of the House is, where
there is a conflict of interest,
the honourable member shall not
make an inquiry inside the House.
‘‘
There is also a tendency now to read out
written speeches in Parliament. This, in some
way, raises the doubt that speeches are prepared
by others, possibly by business groups.
P.J. KURIEN, Member of vice-chairman’s panel in the Rajya Sabha
In many democracies, there is a
mechanism to monitor and assess the
conflict of the member’s interest.
Meghe says he is yet to assess if his
role in the department-related com-
mittee on health amounts to conflict of
interest or not. “This is a developing
situation. It has not become embed-
ded in procedures. Frankly, many
members are not cognisant on this
matter. We are doing it gradually.
There should be a mechanism to en-
courage the members to declare their
interests before they speak,” says
Karan Singh, chairman, Ethics
Committee, who set an example
recently by declaring his son’s inter-
est in the tourism business before
‘‘
can’t be denied their say in
Parliament,” says Nageswara, who
was recently caught in the CoPU stand-
off over conflict of interest. Kore also
says his experience in the health
sector will help the committee to per-
form and that there is no conflict of in-
terest in his case as his chairmanship
is not remunerative. By raising the is-
sue of conflict of interest, nobody is
trying to claim scalps but seeking to
ensure that the audience be given a
chance to form a balanced judgement
of the members’ arguments.
Khan says it is difficult to regulate
the members through law, but they
should pursue their moral obligation
to declare their interest as advised by

‘‘ The rule can only say that the member

‘‘
has to declare the interest before he speaks in
the House. You cannot throttle him. Speech is
free in Parliament.
FALI S. NARIMAN, Lawyer
member’s pecuniary interest is not
clearly defined leading to Brinda-
Bajaj-style stand-offs. “I have every
right to ask a question on tobacco, es-
pecially when its prices are falling. I
am doing it because tobacco plays a
As the honourable member is a
prominent hotelier and therefore, I
would say the question relating to the
industry would, under normal cir-
cumstances, fall in the category of
conflict of interest.”
speaking in the Rajya Sabha on it.
Others argue that second jobs of
MPs help them make qualitative in-
puts. “We have required expertise in
the sector, which will help enhance
the quality of debates. Businessmen
the Ethics Committee. “It is not law. It
is a code of conduct. It is an advisory,”
says Khan. He himself was officiating
the House when Parimal Nathwani
(Independent), who was associated
with Reliance, took part in a discus-

22 INDIA TODAY ◆ NOVEMBER 23, 2009 NOVEMBER 23, 2009 ◆ INDIA TODAY 23
 Nation PARLIAMENT
Clash of Interests
MPs with a business agenda are members of various panels
T. SUBBARAMI REDDY
Rajya Sabha,Andhra Pradesh (INC)
BUSINESS INTERESTS
With assets worth
Rs 239.6 crore,
he built the Gayatri
Group, now headed
by his wife, which
has interests in in-
frastructure, steel,
power and mines
MEMBER OF....
the Committee on Public Under-
takings, though his Group has
public sector units as its clients
PRABHAKAR B. KORE
Rajya Sabha, Karnataka (BJP)
BUSINESS INTERESTS
Chairman of the
Karnataka Lingayat
Education Society,
which runs no less
than 152 institu-
tions right from
kindergarten to the
postgraduate level
MEMBER OF....
the committee on health and
family welfare; his society runs a
number of medical institutions
sion on the Reliance gas-sharing is-
sue. But Nathwani chose to declare
before his speech that he was associ-
ated with RIL. This prompted Karat to
write to Chairman Hamid Ansari ask-
ing him to disallow members who
have such links from participating in
discussions on related issues. “He
was only adhering to the advice of the
Ethics Committee by declaring his as-
sociation. If a member has an inter-
est, he has to declare it. You cannot
prevent a member from speaking in
the House,” Khan said.
To find a solution, India may look
24 INDIA TODAY ◆ NOVEMBER 23, 2009
DATTA RAGHOBAJI MEGHE
Lok Sabha,Wardha, Maharashtra (INC)
BUSINESS INTERESTS
The four-time MP is
the president of the
Maharashtra-based
Radhikabai Meghe
Memorial Medical
Trust. His declared
assets are worth
Rs 35 crore.
MEMBER OF....
the committee on health and fam-
ily welfare, though he manages a
trust that runs medical colleges
BADRUDDIN AJMAL
Lok Sabha, Dhubri,Assam (AUDF)
BUSINESS INTERESTS
The perfume baron
is the chairman of
Ajmal group of com-
panies with interests
in textiles, leather,
properties, rubber
plantation and cos-
metic industries
MEMBER OF....
the Standing Committee on
Industry, he is the lone member
of the AUDF in Parliament
to the United Kingdom for answers.
In the House of Lords, the members
have to declare their interests suo
moto when speaking in the House.
Even paid visits in the UK and over-
seas are to be registered. Consider an
earlier entry by British Prime
Minister Gordon Brown in the reg-
istry of members’ interests when he
was just an MP: “On accompanying
visits to Washington, New York and
Sydney in September, my wife and
baby were upgraded by Virgin
Atlantic Airways.”
The arrival of industry captains
has made Parliament take a lenient
view on the issue. To retain respect
for the House, the presiding officers
of both the Houses should be offered
a set of toothy rules. “The current set
of rules is not strong enough. There
is hardly any mention of any punitive
action against the MPs who refuse to
divulge their interests,” says Anil
Bairwal of the Association for
Democratic Reforms. A mechanism
should be evolved to cross-check de-
tails of members in the interest reg-
istry in the Rajya Sabha and make
MPs declare the source of wealth or
their changing business interests. The
Rajya Sabha members’ registry needs
to go online as the present system of
stonewalling information negates the
concept of scrutiny.
T
he members, before they speak
in the House, should feel a
moral compulsion and suo moto de-
clare their interests. The Lok Sabha,
on its part, should rush to prepare its
own members’ interest register. A
monitoring mechanism should also be
put in place, like in Canada, to look
into the violations on a daily basis.
Public confidence in the way parlia-
mentarians discharge their duties de-
pends, to a large extent, on the
presumption that they will not deal
with matters in Parliament in which
they have a conflicting professional or
personal interest.
The answer can be found even in
a historical quirk. As early as 1951,
an investigation was held into the
conduct of member of Parliament
H.G. Mudgal, who acted on behalf of
the Bombay Bullion Association, for
extending favours to them in
Parliament. Prime minister Jawahar-
lal Nehru summarised the issue suc-
cinctly, “I do submit that it has
become a duty for us to be clear, pre-
cise and definite. The facts are clear
and precise, and the decision should
be clear, precise and unambiguous.
And I submit, the House should re-
solve that member should be expelled
from the House.” This piece of
Nehruvian morality seems to have no
takers in Parliament today. ■