Page 41 - Banking Finance April 2020

ARTICLE

India were made to give much expected fillip to corporate
sector. The historical move of Demonetization proved to be
a blessing in disguise for Digital India move by Government.
Further adoption of Goods and Service Tax also proved to
be a boon for business sector. Thus the moves were all meant
to assist the corporate sector.

The erstwhile Government also provided benefits to the
corporate houses by allowing PSBs to follow aggressive
lending to corporate and restructuring of bad loans given
to corporate houses. But engineering of big scams like '2-G
Spectrum scam', 'Mining scam', 'Coalgate scam' etc
cancelled the licenses given for mining and telecom
spectrum by Supreme Court of India.

These cancellations of licenses caused huge losses for the practiced by successive Governments. Further the fraudsters
business houses forcing them to withdraw their support to also make great escapes from the country without being
intercepted by the security agencies and reaching safe
the Government. The scams brought downfall to the
previous Government and swayed faith of corporate houses havens which are beyond the jurisdictional limits of our
country.
from previous Government. Hence both the successive
Governments worked pro-corporate but the established 'big
scam' tag became the USP(unique selling proposition) for Conclusion
the preceding Government which brought its downfall and Thus it is evident that Capitalism is good but becoming too
made unpopular among corporate houses. much capitalistic paves way Crony capitalism which is
detrimental to the welfare of the economy and country at
Cracking the Zeal for Political funding large. Today business houses are the most privileged section
The reason for relentless funding spree of business houses of the society as they are the most benefitted stakeholders
to political parties is to ease the flow of funds from public from the policies framed by the successive Government.
sector banks to business houses. Public sector banks which However this fact is focused upon not to mala fide the honest
are under full control of Government of India are bound to businessman of the country or the Government but to but
work under the direction of Government of India. The to ignite the consciousness of the political parties who are
business houses by playing the role of kingmaker from back getting skewed in their vision by framing economic policies
stages through funding of political parties gets access to the which are benefitting only India Inc. but not the whole India.
huge pool of public funds lying with PSBs.
Moreover the industrialists should be part of decision making
Thus from planning level at the Government till the but the elected people's representatives who will frame the
executing level at the banks a well oiled machinery is set up Government should have to be impartial in their decision
to channelize the funds to corporate houses directly or making. Crony capitalism will also increase the income-
indirectly. The situation remains win-win for all the parties wealth disparity in the country and widen the divide
during the upswing in the economy but with the economy between rich and poor sections of the society. India being
experiencing recession the economy goes into doldrums and an agrarian economy, the focus of the Governments should
the banking sector also faces the brunt of slowing economy be to develop the living standard of farmers along with the
coupled with dwindling performance of the corporate sector. development of industries and technology.

The emergence of the conman like Vijay Mallya and Nirav Moreover giving farm loan waivers will only reap political
Modi further aggravates the problem and exposes the dividends but will not be a permanent solution to the
frailties of economy imbibed by the fangs of crony capitalism perennial problem of farmers. The unbiased decision making

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