Demonstration of brutal federalism\, deadly attempt to change center-state relations

Demonstration of brutal federalism, deadly attempt to change center-state relations

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The delayed monsoon session of both the houses of Parliament starts tomorrow. This will be just a physical attendance session. A few days ago, the Chairman of the Rajya Sabha rejected my suggestion that members who are unable to be physically present should be allowed to attend indirectly. Even if the appearance is satisfactory, the atmosphere will be unrealistic. I think the Houses will act like a parliamentary democracy where the spirit is absent and the soul is missing. A country and everything alike

The main job of both the Houses will be to get the 11 Ordinances issued during the interval between the pending Bills and the session passed. It is beyond comprehension why the country is making a deadly attempt to change center-state relations in key areas when the country is facing a variety of crises — economic catastrophe, growing epidemics, and threats from China. The ordinances are part of the prime minister's favorite principle that in any case 'one country and everything the same'. This principle cuts off the root of the constitutional agreement between the states and the Center that India will be a union of states and federalism - legislative and executive powers will be its fundamental principle.

Over the years, the states have transferred many of their powers to the central government. All parties have ruled India and all parties can be blamed for this. Narendra Modi has taken the power of states to a new height and this attack continues through executive action and legislation. Just consider some new ordinances. Banking (Control) Act Today, all banks, some non-banking financial companies (NBFCs), and all large financial intermediaries are governed by the Banking (Control) Act. The burden is not reduced already. The Reserve Bank's record as a regulator is mixed: there have been many scams under its nose. The only important financial intermediary institution under and under the supervision of the States is the Co-operative Bank. Most states have district central cooperative banks and urban cooperative banks. These are the district level apex banks and these members finance cooperative banks.

The performance of some District Central Cooperative Banks and Urban Cooperative Banks is good, while others are poor. The state government has enough powers to control them, good or bad. Why should this situation change? The Modi government has brought all district central cooperative banks and urban cooperative banks under the Center through an ordinance and appointed the Reserve Bank as its regulator. Powers have been withdrawn to change the membership structure and financial structure of the cooperative bank, which may result in control and management being transferred to strangers and robbers. The feeling behind this ordinance is that all the big financial intermediaries should be under the central government and the management (elected directors) of all district central cooperative banks and urban cooperative banks should be loyal to the central government. This ordinance is an open violation of states' rights.

Essential Commodities Act

I believe that the Essential Commodities Act (EC Act) was concerned with periods of scarcity and control. When there is a surplus reserve of food grains in India and it has the capacity to produce essential commodities according to the demand, it really should have no place. Nevertheless, it cannot be denied that hoarding and black marketing are the benefits of seasonal tightness or flood or drought. That is why the Essential Commodities Act remains in the book of law and gives state governments sufficient powers to regulate business, including the right to set stock deposit limits at various intermediate entities. If the central government wanted to further free the law, it would distribute a policy paper or implement a model act and hand over its control to the states. But no such move will satisfy the Modi government's intentions. Through the ordinance, the powers of the state governments to 'control' were cut and the right to set the 'stock deposit limit' was defrauded. The ordinance, through condition and explanation subdivision, defrauded and nullified the concept of stock limits. If this ordinance becomes law, hoarders will celebrate.

APMC Act and freedom of contract

I believe that the Agricultural Produce Marketing Committee (APMC) Act should be amended from time to time and the marketing of agricultural produce - should be liberalized slowly. The way to achieve this goal comes from ideal laws and determination, not from the legislative path. Through the ordinance, the Central Government has repealed the legislative APMC Act of the state. The worst affected are Punjab, Haryana, Madhya Pradesh, Chhattisgarh, and many other states which have invested heavily in public procurement and MSP (Minimum Support Price) to farmers. It is feared that the Modi government is trying to implement the controversial recommendations of the Shanta Kumar Committee, which will have an impact on public procurement reduction, public distribution system, MSP principle, and food security. The ordinance brought with it relating to freedom of contract does not obligate the buyer not to pay less than the MSP in lieu of the product, leading to the suspicion that the MSP may be removed.