A clarification

Friends,
Several of you have sent emails on the Margadarsi issue and Lok Satta Party’s stand. Clearly, there has been a misunderstanding about our position. I gave a statement in good faith with an intention to raise the quality of public debate, and focus on key issues in dealing with financial institutions. We have neither supported, nor opposed any individual, group or party.

The statement essentially outlines three objectives in dealing with such matters.

Protecting depositors’ interests: Deft handling by regulatory agencies is required to prevent a run on deposits.

Promoting financial stability: Trust in institutions is critical to prevent a cascading effect and eventual collapse.

Role of the Regulator: The RBI, as the Central Bank, has an impeccable record of regulating financial institutions and laying down monetary policy. The Central Bank must act to protect the depositors, prevent cascading effect, penalize wrong doing, and it must be allowed to do so without fear or favour.

All these are unexceptionable points made in the hope that the quality of public discourse will be enhanced by reason, dispassionate analysis and a problem solving approach.

At no stage did Lok Satta Party attack any party or government, nor did it support any individual or group. However, when society is aroused by passion with great ease, it seems to be difficult to steadfastly pursue public interest sans partisanship. Several people misconstrued our comments as unreserved support for a business group, or unrestrained attack on the government. A careful examination of facts clearly proves otherwise.

This stand on preventing a run on deposits is consistent with the Lok Satta’s movement’s stand, earlier, when urban banks were collapsing. Lok Satta then strongly criticized the government’s inept handling of the situation and argued for a revolving fund with contributions from banks and governments to give confidence to depositors.

Lincon once said, “Public opinion is everything; without it nothing can be done, and with it nothing can fail.” In this case, people are divided on the issue and positions are taken easily, and articulated with passion. Once we had realized that for a Party dedicated to creating new politics for a new generation, this issue is a needless digression, I publicly stated that Lok Satta Party would serve public interest better by staying away from the issue. Since then, we have maintained silence on the subject.

Some of our friends and well – wishers have, obviously, strong views on the subject, and they are entitled to them. Lok Satta Party has no interest in the matter, except to protect the interests of depositors and promote rule of law.

I hope you understand and appreciate the fair, balanced, rational, legally correct and morally sound position of Lok Satta Party on this issue. Some may still disagree, and we respect their views. But we have an excruciatingly difficult task of building a better democracy, and we need to put this episode behind us. The nation’s future and the opportunities created for all children irrespective of birth are far too important to permit needless digressions.