Reforming System of Governance in India
To honor Constitutional Guarantee of Economic Justice to Public
November 25, 2005

November 25, 2005

This is a revision of the writ before Supreme Court with copies sent to the Prime Minister and President
Government data has been sought to ratify certain facts used in this writ.
But the exact data will not change the nature of the writ.
Reforms in the system of governance are twenty one prayers listed below.

Dear Honorable Chief Justice,

Economic justice is guaranteed by Indian Constitution.  But decision makers of provinces and their bands of advisors have deliberately followed policies to enrich their families and cronies at colossal losses to society, which can be deciphered only from their legitimate incomes and all assets since independence.  This letter argues how their policies have not only subverted constitutional guarantee on economic justice to public, but also jeopardized national prosperity, security and integrity. 

It is mind-boggling how, for instance, a mineral rich Orissa has descended to an economic abyss with lowest income, highest poverty, highest illiteracy and lowest medical facilities, on per-capita basis among major provinces in India.  Even the plight of Maharastra, the most advanced province, is not very different with Rs.1.10 lakh crores of debt created by the State on the name of public receiving lousy service.  Rulers of a poor province like Orissa have borrowed so recklessly – about Rs.38000 crores on the names of denizens of a poor province – that it is impossible to make interest payments and meet other expenses, let alone enhance social infrastructure.  Most, if not all, industries the State has created by wasting vast amounts of scarce public resources have become defunct and bankrupt. Under a rubric of employment, the State has recklessly created government jobs for members of their families and cronies to offer public disservice or to collect upfront kickbacks from unrelated job candidates by mortgaging future revenues of the province.  Revenues of provincial governments can barely meet salaries and pensions of staff unwilling to perform their duties without kickbacks.  The Union has to print rupee recklessly to survive.  This raises inflation and angers rural India that gets nothing of the newly minted fiat money which gravitates back to the same group of people.   

This is a slightly updated version a writ submitted to the Honorable Supreme Court how the State has traversed to an economic rut and to pray the esteemed Court to wield its constitutional powers to reverse our path towards social prosperity, integrity and security.  The presentation below is organized in sections A through G, with twenty one prayers to Honorable CJ (written in different type fonts) for specific court orders to restore economic justice to public. 

A.  System of governance threatens national security, integrity and prosperity. 

By corrupting public service institutions, decision makers have rendered the system of governance defunct and decrepit.   This system dissuades officials from performing their public service duties without kickbacks.  It allows files to be “put up” indefinitely to make no decision and to hold no one responsible until palms are greased.  

A defunct system of governance has made India internationally uncompetitive with exports falling short of imports.  Indian rupee has fallen 75% after the Chinese currency yuan was devalued about 25% in 1994.  China has received foreign direct investments of about Rs. 3,150,000 crores ($700 billion) in last 15 years.  But India has not been able to attract even one-tenth of that sum.  There are reports suggesting that Indians from all over the world invest in China more than the whole world invests in India.  

In fact, foreign capital seems to prefer India as indicated by our rising stock markets and bank deposits.  But our system of governance nibbles away capital before it is deployed in real ventures through controls on license, land and utility.  Only those industries in which the State cannot exercise much control like software (which can grow at home and garage) have performed superbly.  Indians in advanced societies have succeeded enormously in all crucial fields like business, space, and medicine.  Indian entrepreneurship talent is second to none.  This shows that the system of governance of the State is responsible to divert global entrepreneurs, including Non-resident Indians, from India to establish real ventures in many critical areas like manufacturing in other societies that allow capitals to grow at higher rates than the bank rate of interest.  Unless decision makers of the State understand that capital must be expected to grow at rates higher than the bank rate of interest, surplus capital will continue to flow into bank deposits or gravitate elsewhere. 

Remittance by non-resident Indians to India has reached Rs.97000 crores ($23 billion), annually, surpassing national income tax revenues.  But these funds deposited in banks are primarily swallowed back by the State as loans, ostensibly for development that does not reach targets as envisaged on paper.  As a result, our infrastructure perpetually languishes and exports cannot catch up with imports.  This forces the nation to export our limited reserves of raw materials.  Raw material exports strengthen our competitors like China.  Our rupee value remains depressed in international exchange market due to perpetual trade deficits and a truly suicidal system of governance that stifles national competitiveness. 

A depressed rupee forces Reserve Bank of India to create more fiat money in the private accounts of a few exporters and expatriates.  These funds are borrowed by the State’s decision makers and their band of cronies in the name of development projects, but to siphon off furtively through schemes designed for self-enrichment.  The illegally transferred funds are sunk mostly in urban real estate, pushing prices in cities like Bhubaneswar to 2500-5000 percent of good developed real estate in developed nations like USA.  The illegal capitals sunk in real estate generate no employment.  Neither does it produce much income.  Buildings constructed decay over time.  This shows how decision makers make scarce capitals sink to ground zero in our society. 

Urban areas are increasingly crowded because of lack of basic amenities in rural areas.  Decision makers, their bands of officials, cronies and families exploit the demand for urban living and illegally transfer public lands in cities to builders for self-enrichment.  But such land transfers choke public drainage systems, polluting ground water. Urban overcrowding has also dangerously lowered ground water tables of cities, making many tube wells go dry.  This has endangered lives of even the most productive people who are forced to gravitate to urban areas for employment.  Productive citizens are also locking up their legitimate live savings in lousy apartments bought at exorbitant prices.  Real estate prices have risen dramatically because illegal funds, embezzled from bank loans and development projects, tend to gravitate to real estate due to a fear of vigilance. 

More and more money recycles back to the same group of people in society.  This raises prices of necessities, which aggravates sustenance of people with no access to money due to unemployment or unviable business.  People facing hardship comprise about 80% living in rural India.  It is sad that India allocates only 8.5% of revenues for rural India where 80% people live.  But even these disproportionately allocated meager funds are recycled back by officials in charge of development at the behest of their political masters. 

It is natural for some of these deprived people to be irate enough to turn to Naxalism.  But Naxals can be funded by external forces to jeopardize our national security and integrity.  Our suicidal system of governance and policies, designed to enrich decision makers of the State, have thus become national security threats.  Decision makers and associated bands of the State use up publicly paid police force for their protection.  They then seek special protection forces to intimidate and kill the irate villagers and tribals.  By and large, public avails little service from police, except harassment and intimidation at the behest of decision makers of the State. 

B.  Current system of governance and policies cause economic injustice to public. 

The previous section shows that our decision makers and their bands live as parasites on society to:

  • consume and usurp public wealth without delivering productive works or services,
  • use up publicly paid police force to remain cocooned in security to concoct schemes to defraud public,
  • jeopardize national security and integrity, and
  • use the pretext of maintaining law and order to muzzle protesting voices by bribes,  intimidation via arrests, and physical harm with lethal forces paid by public. 

This is not economic or social justice guaranteed by Constitution of India.  

Prayer-1:  Order the State to follow the provisions of Service Conduct Rules 166 and 167 of IPC to criminally prosecute officials found to be involved in usurpation of public wealth. 

Prayer-2: Constitute a special bench to directly prosecute bigwigs who protect such official criminals under the same Service Conduct Rules 166 and 167 of IPC for their failure to obey laws of not punishing guilty officials and for failure to accurately record reported offences. 

For example, some official transfers public lands to builders for self enrichment according to State’s conclusive investigations, but is merely transferred to another office.  Transferring a criminal official does not solve the malaise because it does not preclude a new official from robbing society at the behest of the same bigwig accomplices and political sponsors.  Transfer of a criminal official does not prevent him from robbing public property in his new office.  Are such officials nabbed by the State not criminals for looting public property?  Are their bigwig accomplices not bigger criminals for harboring and protecting criminals?  Rational inference and newspaper reports suggest that bigwigs have colluded and benefited from such usurpation.  It is not only the transfer of public lands for self enrichment that renders economic injustice to public.  Such land transfers also choke city drainage systems causing flood during heavy downpours (as in Mumbai recently), polluting the underground waters and emitting unbearable stench, causing unwarranted disease and death of public.   

Punishing criminal officials is necessary to thwart such acts by other officials.  But this is not sufficient to deliver economic justice to public.  Current governance system makes citizens to run from pillar to post in circles to accomplish any mundane job like getting an ownership title for a properly deeded land or to pay land taxes (khajanas).  The old colonial system of governance that is still in vogue after six decades of independence has been perfected by neo-colonial rulers of India to collect kickbacks even for accepting revenues for the State.  This is obviously not economic justice to public. 

CFD has been at the forefront of fighting for reforming the system of governance over last five years.  Central government has now implemented a PAR system of evaluation of officials after it has dawned on leaders like Dr. Manmohan Singh that our national prosperity, security and integrity are being undermined by the current system of governance.  CFD has communicated with Center to amend even the proposed PAR system to deliver economic justice to society and thwart a national crisis from brewing due to governance system. State governments have offered only lip-service to CFD’s proposals. 

Prayer-3:  Order the State to serve public and to deliver economic justice by (i) designating just one official (including Chief Ministers) as responsible and by granting the responsible official all the authority needed to execute any given public service function of the State within a pre-stipulated time, e.g., deciding on approval of a project within 15 days or by granting titles of ownership on a properly deeded and registered land within 10 days of registration. 

Prayer-4:  Order the State to (i) not hold more than one official responsible for the same government function (one official may be responsible for multiple functions) and (ii) list all public service functions and transparent procedures with a designated responsible official for each function of the State under all its departments within a reasonable time of one year.  

Only such court orders can deliver constitutionally guaranteed economic justice by holding a responsible official accountable for timely execution of a public service function for which the official and his staff are paid by public.  This is the first principle of administration on authority-responsibility-accountability that our colonial system of governance does not follow.  This system was designed to accomplish the British goal of keeping our society perpetually subjugated.  Unfortunately, this system has also immensely suited our neo-colonial, self-enriching decision makers and their families and cronies in the State.  But it does not deliver constitutionally guaranteed economic justice to a democratic independent society. 

Prayer-5:  Order the State to remove all officials lapsing in execution of their public service functions within pre-stipulated time limits, in order to make our system of governance deliver economic justice credibly. 

Execution of public service functions includes specifying transparently an exact procedure that a citizen has to follow to obtain the responsible public servant’s decision within a pre-stipulated time limit. Only such transparent procedures within a reformed system of governance will dissuade public servants from bandying their customers (citizens who pay salaries and pensions of these public servants) from pillar to post with missing files until kickbacks are paid.  Only then can citizens enjoy constitutionally guaranteed economic justice. 

Prayer-6:  Order the State (i) to fill all vacant government posts at all levels based on competition open to all qualified nationals including internal candidates already serving the government, and (ii) to not man public service commissions (recruiting agencies) with any cadre-based bureaucrat in order to make the recruitment process credibly competitive. 

Only competition can breed the talent necessary to generate best ideas to render the best feasible public service, which is crucial for constitutionally guaranteed economic justice to public. Current cadre-based promotions have resulted in vegetating bureaucracies subservient to bosses and detached from public.  Most, if not all, public sector undertakings (PSUs) created by entrenched bureaucratic cadres in the State since independence have recklessly wasted massive sums of scarce capitals of our society.  Many of these PSUs are now being closed or sold at losses.  Bureaucratic propaganda of employment generation has proved to be shockingly false to workers who have little hope of retaining their jobs in bankrupt and defunct PSUs.  Bureaucrats losing thousands of crores of scarce public capital through their brainchild PSUs are worse managers than even street vendors who can earn enough business profits. It is not economic justice to public to bear profligacy, perquisites, pay and pension of such destructive bureaucrats. 

Lack of competition from non-government qualified smart candidates willing to work harder for less pay (there is no dearth of such candidates in our society) than cadre-based entrenched bureaucrats makes the latter complacent to:

  • presume falsely that all the borne-by-public bureaucratic pays, pensions and perquisites are free manna from heaven,
  • remorselessly destroy scarce capitals, embezzle development/relief funds, and usurp public properties,
  • not monitor infrastructure development projects resulting in shoddy social infrastructure, and
  • abuse their consumers (public) who pay for bureaucratic extravaganza and profligacy. 

The State has thus meted economic injustice to public by subverting our constitution.  Ordering the State to competitively fill posts at all levels of bureaucratic hierarchy – through public service commissions not manned by any cadre-based bureaucrats – will definitely help in rendering economic justice to public.   

It is not merely a colossal transfer of public wealth to private coffers that our current system of governance entails. As argued earlier, usurping development funds and public properties seethes villagers and tribals, inducing them to join Naxalism.  Naxals can be armed and funded by foreigners, jeopardizing national security, prosperity and integrity. 

Prayer-7:  Order the State to compile data on how funds collected from various sources have been spent district-wise over last ten years in the attached questionnaire. 

CFD’s request before Orissa government for compilation of such data has taken one year without any action, despite reminders.  The information gathered in this questionnaire will be valuable to make policy corrections to thwart the rapidly spreading Naxal menace.

C.  Economic Justice Can Stem Only from Laws of Economics.

Economic justice is guaranteed by Indian Constitution. MINES AND MINERALS DEVELOPMENT AND REGULATION ACT, 1957 (MMDR) also ensures that the Union government will develop mines and minerals “in the public interest.”  But bureaucratically fixed negligible royalty payments for minerals of a province (lessor) are not in public interest and does not bestow economic justice on public.

The only basis to arbiter economic justice can be the law of economics, i.e., of supply and demand of minerals that determine market prices.  Bureaucrats can assert that their artificially set royalties guarantee economic justice.  But mere assertions do not prove constitutionally guaranteed economic justice. 

Prayer-8:  Arbiter economic justice based on the law of economics, not bureaucratic assertions. 

If some minerals fed to a Public Sector Undertaking do not have established markets, then the market value of such minerals is the PSU’s residual revenue which is the proceeds (revenues) from sales of the end product minus all costs incurred in making and selling (except any royalty) like mining, interest on financing, wages, marketing, actual depreciation and corporate income taxes. 

Prayer-9:  Order the State to accept a PSU’s residual revenue as the true market value of ores that a lessor (provincial owner) must receive from the PSU (lessee) to serve best public interest as per MMDR and to render constitutionally guaranteed economic justice as per rational law of economics. 

For example, Orissa’s alumina does not trade in open market and is used in NALCO.  The true market value of Orissa’s alumina used in NALCO in a year is NALCO’s residual revenue, which is equal to recorded annual revenues minus all costs incurred in production and selling of aluminum (mining, marketing, interest, wages and depreciation and taxes) except bureaucratically fixed royalty.  This residual revenue or true market value of Orissa’s alumina used in NALCO minus bureaucratically fixed royalty is NALCO’s currently reported profit of about Rs.1200 crores this year.  This means Orissa’s alumina ore used in NACO has a market value equal to Rs.1200 crores (NALCO’s current profit) plus bureaucratically fixed royalty.  Most of this is consumed by the State as 90% of revenues are paid off in salaries and pensions of staff.  It should flow for building public services of areas denuded, deforested and scorched in the concerned province to render constitutionally guaranteed economic justice based on laws of economics.  This economic justice is also in public interest because Center collects a significant part of the PSU’s revenues as corporate income taxes, interests on investment capitals and wages of bureaucrats.  PSUs’ residual revenues are market values of ores that must accrue to public exchequers of lessors (provincial owners of mines).   

Prayer-10:  Order the State that bureaucracy in democratic India is not a royal entity to fix whimsically royalty payments by lessee (PSU) to public exchequer of lessor (provincial owner). 

It is blatant injustice to bestow a lessee with the authority to pay whatever piddle sum it deems expedient to the lessor.[2]  Such injustice transgresses Constitution of India.  Neither does it serve public interest legislated in MMDR.  No law of economics is used to fix artificial royalty figures by bureaucrats and their political masters to serve their narrow self-enrichment interests. 

A complete list of all mine leases and their names will show how decision makers and their bands in the State pay the public exchequer very little to rob valuable limited public assets like mineral ores through crony industrialists.  The reason for why our public infrastructure cannot improve is that decision makers and their accomplices in the State are not acting in best public interest.  They are subverting constitution of India by not rendering economic justice to public.  No economic justice can flow to public when artificial piddle royalties, concocted by self-serving bureaucracy and political masters of the State, are paid to public exchequers.  We are supposed to be living in democracy after British royals were evicted from India.  No pseudo-royals or neo-colonials can be allowed to loot the State’s mineral wealth under the garb of industrialization.  

Direct economic injustice due to artificially fixed royalties results in colossal indirect economic injustice. For example, debt-ridden bankrupt states cannot match Central grants for development.  This leads to malnutrition, hunger and death of people.  This also makes villagers and tribals seethe about economic and social injustice.  Many of them have joined Naxal movement; twenty out of thirty districts of Orissa are under Naxal control as per latest news reports.  Naxals can be funded and armed externally to threaten national security and integrity.  Current system of governance and policies are squarely responsible for deterioration of economic/social injustice and national integrity that we the people of India have solemnly declared to preserve through our Constitution.      

In any case, artificially fixed royalties must not be imposed as economically justifiable price at which public mineral resources could be plundered by private parties under the cacophony of industrialization.  Decision makers of provinces like Orissa, Chattishgarh and Bihar have not served public interest by transferring massive quantities of public wealth to private parties, while spreading propaganda lies of industrialization, to serve myopic self-enrichment goals. 

Prayer-11: Order the State to accept that the MOUs signed for mineral-based industries with private parties do not serve economic justice for society and transgress Constitution of India. 

Prayer-12: Order the State to restructure the MOUs that have not yet gone into effect in best public interest to serve economic justice as per Constitution of India. 

Prayer-13: Order the State to restructure agreements with existing mineral-based industries in best public interest to serve economic justice as per Constitution of India.

Selling iron ore mines to crony industrialists at about Rs.100 per tonne or for some nominal dead rent, while the current market price is about Rs.3700 per tonne, is ripping off public.  Uncontested news reports on illegal shipment of ores from provinces show that quantities of sales, even at throw-away prices, are perhaps understated.

Prayer-14:  Subpoena the State’s records of all leased mines, names of lessees, relationship of lessees with decision makers and involved bands of officials vetting those leases, and assets and incomes of families of decision makers and connected top officials since independence for judicial investigation by a special bench of Honorable Supreme Court.    

D. Broadcasting of Truth is Necessary for Economic Justice to Public.

Selling of mineral ores – whether unprocessed or processed metals – is not industrialization that decision makers have been trumpeting falsely through a subservient government machinery to deceive public.  Mineral based enterprises merely dispose off our limited minerals (to competing nations), either as ores extracted from mines or as metals produced by plants after processing mined ores. 

Most of India’s exports to China are raw minerals and metals.  Nations competing with India take away (thanks to the State) our limited minerals to build their highways, bridges and towers, while we are left with polluted environment, denuded forests, scorched earth with desert like temperatures.  In addition, India’s displaced citizens lose their wherewithal for sustenance.  Decision makers of the State have concocted schemes for self-enrichment.  Only their illegitimate wealth is rising exponentially, while the rest of the society is being deprived.   

Prayer-15:  Order the State to not call selling of our limited resources (either through plants or direct mining) as industrialization and to pass strictures against officials acting as ruling party’s mouth pieces to spread propaganda. 

Prayer-16:  Subpoena government records on funding of publications used by ruling party to spread naked lies like industrialization to camouflage massive selling of our limited national assets at throw away prices.    

E.  Agreement with POSCO is deliberately perpetrated economic injustice to public.

Shri Naveen Patnaik’s band of officials have signed on June 22, 2005 an agreement (MOU) with Pohang Steel Company (POSCO) of South Korea to sell off 60 crore tonnes of iron ore at about Rs.100 per tonne by transferring mines to POSCO from Orissa Mining Corporation which is currently selling iron ore in open market at Rs. 3700 per tonne or Rs.2100 per tonne after freight to plant site.  This means Shri Patnaik has asked his band of officials to sign on an agreement to transfer Rs. 120000 crores (Rs.2000 per tonne times 60 crore tones) of Orissa’s mineral wealth to the South Korean company at current rupee price of iron ore per tonne.  

As argued earlier, the value of rupee has fallen dramatically in international exchange rate market because India cannot export as much as it needs to import.  This is why prices of metals and ores have risen more rapidly in rupee terms than in terms of international currencies like dollar, euro or yen.  Demand for metals will continue to rise while supplies dwindle, making our minerals pricier.  If the system of governance does not improve, India’s international competitiveness will continue to sag and rupee is likely to fall further.  There are thus two sources of pressure for rising rupee prices of our minerals: weaker rupee and dwindling global supply of minerals.  It is thus obvious that our losses due to the government’s MOU with POSCO will be many times more than the loss of Rs.120000 crores estimated at current price.  In fact, POSCO has been searching for iron ore globally to feed its hungry steel plants.  China and Brazil offered POSCO iron ore at prevailing market prices.  What extra intelligence do Orissa government officials have to commit financial suicide in behalf of citizens by agreeing to sell ores to POSCO for Rs.100 per tonne as opposed to Rs.1600 per tonne that Orissa Mining Corporation is currently getting?  This is economic injustice to public and subversion of Indian constitution by the State.

Prayer-17:  Order the State to structure a new MOU with POSCO - containing all substantive points in the attached mineral policy designed to serve the best public interest - and to scrap the current MOU with POSCO. 

Prayer-18:  Order the State to eliminate from public payroll the public servants who have deliberately acted in the worst public interest by signing such MOU with POSCO, as discussed above. 

The POSCO MOU is a clear example of defrauding society to serve petty self-enrichment interests of decision makers.  The defense of Shri Naveen Patnaik (CM of Orissa), as communicated through press reports of his cabinet ministers, for selling of limited mineral assets at throw-away prices is very unbecoming of a leader elected to serve public interest.[3]  His logic amounts to the following:

  • Ores have been given away for piddle sums of “royalty” since independence and so there is nothing different in the new MOUs.
  • Past chief ministers, Mr. Janaki Ballav Patnaik and Mr. Biju Patnaik, have also sold minerals at throw-away prices to private parties. 
  • It is not viable for any private enterprise to produce steel profitably by procuring iron ore at market prices. 

Logics (i)-(ii) mean that Shri Naveen Patnaik is taking unseemly umbrage on irrationality of past leaders and past practices of selling of minerals for piddle sums of royalty to justify continued public rip off for self-enrichment of involved decision makers of the State. Piddle royalties paid by Central PSUs (lessees) have effectively transferred mineral wealth of some provinces (lessors) towards development of other provinces, assuming that the ever growing bureaucracy leaves anything from dividends generated by these PSUs for development of public infrastructure anywhere.  This assumption is mostly invalid, though, because the State consumes 90% of all revenues in staff salaries and pensions.  A city like Mumbai only pays taxes to the State to get poor drainage and civic amenities in return. 

In any case, exploiting the same artificially low royalty structure (even after accounting for some nominal cess being levied lately) for private enterprises is a serious blow to public interest, economic justice and Constitution.  This amounts to sharing of the difference between the market values of minerals and piddle royalties paid to State’s public treasuries between decision makers of the State and crony industrialists.  This also leads to more rapid erosion of our mineral wealth at current prices which are far below expected future prices to prevail when global mineral reserves deplete completely.  Besides, exporting minerals or metals is mind-boggling insanity: it is a suicidal path followed in behalf of public by myopic self-serving decision makers and their cohorts in the State to sap national wealth, security and integrity.

The above stated logic (iii) of Shri Naveen Patnaik that private steel mills cannot run profitably if they were to pay market prices of iron ore is contrary to the truth.  Market price of iron ore is Rs.3700 because there are many major steel plants who buy the ore in open markets for production of steel at profits.  The Japanese and Korean steel plants buy ores globally and so there is a market price of ores.  In particular, POSCO buys iron ore at market prices to produce steel and generate massive amounts of profits.   A company like the South Korean Pohang Steel Company (POSCO) buys iron ore at market prices to make crude steel for $1000 per tonne at a net profit of $230 per tonne.   Why has the State agreed to receive only $0.075 per tonne in royalty from such a profitable venture?  [The figure of $0.075 was based on some data released in press. CFD has asked the government to provide such information under the RTI.] This is not in the best Indian public interest.  Why should Shri Naveen Patnaik agree to sell Orissa’s iron ores to POSCO for 6% of market price fetched by Orissa Mining Corporation from the same mines slated to be transferred to POSCO, unless, of course, private deals for kickbacks have been made?  Such private deals for self-enrichment, going on during the last three regimes, have ruined our public wealth, making Oriyas poorest, most illiterate and sickest in India

Prayer-19:  Order the State to retain sufficient equity ownership interest (to claim future dividends) in any mineral-based industry and sell minerals at market prices prevailing at the time of extraction to serve the best public interest and bestow constitutionally guaranteed economic justice. 

CFD has widely distributed such a draft mineral policy in best public interest since February 2005 with a copy to Orissa CM Shri Naveen Patnaik, PM Dr. Manmohan Singh, and President Dr. Abdul Kalam.  Orissa Chief Minister’s Office has acknowledged its receipt but ignored it, indicating that our decision makers are not interested in serious analysis on public interest.        

Prayer-20:  Order the State to deploy all revenues generated from mineral wealth only for development of public infrastructure (roads, schools, colleges, hospitals, electric communication, water, electric supply, and environmental protection) of provinces owning the mines. 

Such an order is necessary to guarantee economic justice to public by not permitting the bureaucrats and their political masters in the State to swallow the national resources in an endless expansion of bureaucracy and furtive schemes to benefit their cohorts by spreading propaganda of employment generation and pseudo industrialization.

F. Transferring public wealth to crony industrialists defies economic justice.

Shri Naveen Patnaik has committed one of the biggest frauds on public and Indian Constitution by relieving IMFA, Cargil India and other crony enterprises of Rs.2300 crores in dues they owed to Orissa’s public exchequer, as per news reports.  The executives of IMFA are the richest in Orissa, while the Indian Express has ranked them among twenty top national bank robbers.  It is important to see how developed societies take ruthless actions against such robbers:  “WorldCom's Ebbers Gets 25 Years For $11 Billion Fraud.” (news clip attached).

Prayer-21:  Constitute Court Benches comprising eminent judges and experts to identify and prosecute serious white collar industrialist offenders and their political sponsors to mete them with strictest exemplary punishments possible under law so that economic justice can be constitutionally guaranteed to public. 

Currently, a province like Orissa is dotted with failed and bankrupt industries, private and government.  This is because approvals for such ventures are based on kickbacks, which effectively promote only those entrepreneurs who have premeditated schemes to defraud banks and society.  The former president of USA, Mr. Bill Clinton, could be tried just because his aide decades ago had requested a bank loan, when Clinton was governor of a state.  How can Shri Naveen Patnaik go scot-free even after writing off massive sums of a poor begging province’s funds owed to public exchequer by crony industrialists?  How can Shri Patnaik recklessly sell off minerals at only 6% (100:1600) of market price?  

G.   Conclusion

Social prosperity, security and integrity are possible only through economic justice to public, which is enshrined in Indian constitution.  But the State has miserably failed to deliver economic justice to public and thus subverted the constitution.  If the above twenty one prayers before Honorable CJ of the Supreme Court can translate into constitutionally feasible court orders to the State, the public can hope for economic justice through better roads, educational facilities, health care centers, electricity connections, water supply, communication links, natural environment, and appropriate service from public servants.     

With profound regards,


(Sankarshan Acharya)

[1] “The State” is as defined in Article 12 and economic justice is as guaranteed in preamble of Indian Constitution.

[2] MMDR has admitted that provinces where mines are located are true owners (lessors).  MMDR website ( poses a Question, “Who is the owner of minerals in India?” and offers an Answer:  “In the federal structure of India, the State (provincial) Governments are the owners of minerals located within the boundary of the State concerned. The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India.”

[3] Biju Janata Dal of Orissa actually represents a minority of voters in Orissa.  BJD and BJP together polled 47% of votes during 2004 election.  Neither the cabinet nor the Legislative Assembly of Orissa was involved in the POSCO MOU agreement signed by a few bureaucrats with Shri Patnaik’s concurrence.  The BJP of Orissa is opposed to the POSCO MOU.  Many elected BJD leaders are also opposed to the MOU with POSCO.