This refers to K V Rao's letter "Licences and litigations" (March 24). It is difficult to comprehend the writer's concern about prospective public interest litigations (PILs). Actions taken by any wing of the executive or by any regulator at any time could invite PILs, which are dealt with by the courts. Fear of PILs can never be an alibi for inaction or procrastination. More importantly, it was an error of judgement on the part of the Reserve Bank of India (RBI) to have sought the permission of the Election Commission (EC) to issue bank licences at this juncture. Not only did the process start more than a year ago, but as an independent body, RBI should be free to choose its own time. Any argument that RBI's actions could possibly benefit private entities, and thus confer an undue electoral benefit on the ruling coalition, must be rejected since it undermines the central bank's institutional integrity. If RBI wanted to "play safe" by approaching the EC, it is only natural for the latter to follow suit.
It is time for the government and regulators to get a clear idea of the contours of the model code of conduct and stop embracing unwarranted shackles on their legitimate actions.
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It is time for the government and regulators to get a clear idea of the contours of the model code of conduct and stop embracing unwarranted shackles on their legitimate actions.
Parthasarathy Chaganty, Mumbai
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number