3 US entities lobbied on tax plan

Now it is clear that lobbying is  widely practiced in America. But the government of India succumbing to the pressure of lobbyists on a sensitive issue of national importance such as FDI in retail trade is a matter of grave concern. The general opinion among political leaders, experts and others is that the UPA government took an unusually strange and adamant stand on allowing FDI in multi-brand retail trade. It refused to heed to unprecedented public sentiment and opposition from almost all political parties, baring the Congress Party, Nationalist Congress Party, Rashtriya Lok Dal and Rashtriya Janatha Dal, entire trading community, farmers’ bodies, experts and the public in general. Reports suggest that the UPA government became susceptible to powerful lobbying engaged by Walmart and other multinational retail giants to pressurise the Indian government to allow FDI in retail trade. It seems that through constant lobbying, they were able to persuade their home countries, especially the American government to exert pressure on the Indian government.  Further, it is also reported they had also influenced American based rating agencies to plant news warning possible downgrading of India to negative rating unless India embarked on second generation reforms, including FDI in retail trade.   Now it has also come to light (as per the lobbying disclosure reports filed by Walmart with the US Senate) that Walmart has spent about $25 million (around Rs. 125 crore) since 2008 for its various lobbying activities, especially for allowing FDI in mutli-brand retail trade India. Moreover, it is suspected that in addition to the amount disclosed as expenditure towards lobbying, Walmart has reportedly spent huge amount as kick off payments to Indians. The revelation about spending huge amount by Walmart for lobbying to persuade the government of India to allow FDI in   retail trade in India  has caused utter consternation among a cross section of the people of the country. And bowing to opposition pressure, the government on 12.12.2012 announced a time-bound inquiry by a retired judge into reports of lobbying by retail giant Walmart to gain entry into India.  But many believe that announcement that a retired judge would hold inquiry will be of no use. They feel that the inquiry should be conducted by a Special Investigating Team (SIT) under supervision of the Supreme Court or at least by a sitting judge of the Supreme Court. So, for the judicial inquiry, terms of reference should be broad based, otherwise it will be very easy to skip off and get clean chit to this giant company. Where is the guarantee that Walmart will not indulge in high voltage lobbying to get clean chit?

Th Times of India, December17, 2012.