Name the SHAME

Mr. Ratan Tata  said  that he was advised to bribe a minister a sum of Rs 15 crore to get governmental approval to start a private airline company  some years back. It would have been appropriate  if Mr Tata had named the minister and made public his demands at that time  rather than  merely whining and seeking to occupy high moral ground. If business leaders of the stature of Mr Tata are willing to strike but afraid to wound, what can one expect of lesser mortals? Ordinary citizens facing people in power, one can understand their fear of authority. But an influential and powerful business leader like Mr. Tata can afford to speak up and speak out, without fear or favour.   Mr. Tata whom you are afraid of and for what??? Unless you speak up there is no value to the Jago re….. campaign  which is being sponsored by one of your group company.

Scams - our part of Life

Gaining inappropriately from any thing is Indian Politicians specialties.  Name any sector like   so called poor persons "cattle fodder" to high end civil aviation. Recent examples like Common wealth games,(CWG) Adarsh housing, 2G spectrum etc etc. 

These scams highlight the controls the government retains on physical resources and contracting processes. Systems of managing them are byzantine in nature, fatiguing citizens with opaqueness and red tape. This very nature of system offers ample opportunities for rent extraction, as bribery becomes a quick way to get permits. A 'crony' culture also exists, with contracts being awarded to the most fawning of supporters backing a  MLA, MP or minister.  Though India is not alone. The situation in India, is  the  unaccountable and corrupt authorities persecuting the ordinary  ones while permitting the impermissible, is truly worrying.  The way forward,  these politicians must be investigated through impartial fast track courts and if possible capital punishment should be awarded to them just like the Chinese  sentences those guilty of corruption.

Indian Microlenders Face Collapse, Warns Agency

The Indian government may be forced to step in to save the country's $6.7-billion microfinance industry from collapse warns  a leading industry ratings agency. The Microfinance Institutions Network or MFIN, which represents 44 leading Indian microfinance lenders, has said commercial bank loans to the sector are drying up and borrowers are reneging on their debts. India's microfinance industry, which surged to prominence when George Soros-backed SKS Microfinance raised $358 million in an IPO, faces a regulatory clampdown that could erode profits and hurt growth.

Reports of dozens of suicides by poor borrowers in Andhra Pradesh, the hub of India's microfinance sector, prompted the state to enact rules against aggressive recovery practices by lenders who make loans that average about $150 to poor customers at interest rates that can go up to 36 per cent. Lenders were accused of aggressive debt collectors who were blamed for over 30 suicides. Andhra Pradesh's share of outstanding microfinance loans accounts for around 35 per cent of the sector's total $6.7-billion portfolio. Before the crisis, the sector boasted loan repayment rates of 99 per cent.

The finance minister said this week that he expects the industry to develop a code of conduct on interest rates and recovery practices, while the central bank recently set up a panel to study issues surrounding the sector. The Andhra Pradesh government had introduced a measure aimed at halting "harassment" of borrowers, imposing penalties of up to three years in jail and Rs 100,000 ($2,000) in fines for attempting to coerce borrowers.
 
The rise of for-profit microfinance has made billions of dollars in credit available to millions of poor people in India and elsewhere, but it has also spurred controversy. India is home to roughly 400 microfinance lenders with a combined Rs 207 billion ($4.6 billion) in outstanding loans to 70 million poor people. The 10 largest players account for roughly 80 per cent of the industry. With a potential base of 120 million unbanked homes, microcredit demand in India has the potential to rise sharply. New rules are expected eventually to bring down interest rates, and reduce aggressive lending and collection practices, potentially squeezing out smaller players. Ultimately, that could make the industry more transparent and accountable, if less profitable. Critics are uncomfortable with high profit margins earned from poor borrowers, and worry that the social mission of microfinance has been sidelined in favour of profits. 

 (extract from BW)