Lawyers' forum opposes FDI in retail, SEZs sans norms
Nov 25, 2006 - 11:59:52 PM
, Reviewed by: Priya Saxena
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'This apart, only 35 percent of the land allotted to the SEZs will be used for commerce. The remaining 65 percent will be used for real estate development. Thus, only the building mafia that is closely linked to the political class will benefit.
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By RxPG News Service,
[RxPG] New Delhi, Nov 25 - A group of Supreme Court lawyers has urged the Indian government to rework its policy of permitting 51 percent foreign direct investment in the retail sector, as also permitting 100 percent equity in special economic zones -, saying this would infringe on the nation's sovereignty.
'We are not opposed to FDI. What we are demanding is that the interests of the country, as also the interests of Indian traders and farmers, who will be the most affected by these two measures, be protected,' said Sonia Raj Sood, Supreme Court lawyer and spokesperson of the group that does not have a formal name at a media interaction here Saturday.
Sood is better known for her efforts to expunge disparaging remarks by a British judge of the Lahore High Court in pre-Independence days against the Punjabi community. Pakistan President Pervez Musharraf and British Prime Minister Tony Blair have supported this move.
On the same lines, Sood said she would encourage concerned individuals in the states to move their respective high courts against the twin moves and even file a public suit in the Supreme Court on this.
'The government's move to permit 51 percent FDI in retail is anti-national as it would deprive a majority of Indian businessmen and traders of their means of livelihood,' Sood said.
'It is incomprehensible how an economist like Prime Minister Manmohan Singh, who had opposed the move - could have agreed to this after one meeting with the head of - Wal-Mart,' she added.
The Indian government had earlier this year permitted 51 percent FDI in single branded foreign entities. This means that while companies like Levi's, for instance, can open exclusive company stores in India, so can chains like Wal-Mart.
'The government's new policy means that MNCs can take over existing retain businesses in India and drive small traders to ruin,' Sood said.
'Single brand retailing is a misleading term as it would allow foreign superstores to sell a wide range of foreign products in India,' she said.
'Not only this, such stores would further encourage sale of frozen and imported fruit and vegetables and dairy products in preference to our own farm fresh produce,' Sood explained.
According to her, 'if the citizens of India do not oppose this policy now, a time will come when the Indian farmer, the backbone of the Indian agrarian economy, will be left empty-handed'.
In this context, Sood pointed out that Indian farmers were already feeling the pinch of the government's new policy to permit 42 new Sezs, with another 200-plus applications in the pipeline, as such entities were being permitted on both fertile and barren land.
'What will happen when these SEZs come up? They will become foreign entities on Indian soil over which the Indian government will have no control.
'This apart, only 35 percent of the land allotted to the SEZs will be used for commerce. The remaining 65 percent will be used for real estate development. Thus, only the building mafia that is closely linked to the political class will benefit.
'It is for this reason that we are demanding that that proper regulations be put in place for both FDI in retail and in the creation of SEZs,' Sood said.
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