Since state financial corporations are set up to encourage the establishment of industries by providing loans on liberal terms, the recovery of debts from chronic defaulters is seen by courts from two angles. One is that public money is lent for starting private enterprises and, therefore, the financial institutions should be tough on the debtors. The other approach is that these units benefit the public and, therefore, the endeavour should...

Rajasthan had emerged as a model for transparency and accountability in NREGS implementation. Tragically, entrenched interests have been allowed to hijack the process.  Through the second half of October and for most of November this year, Rajasthan was engulfed in an unusual form of protest, spearheaded in the main by gram panchayat officials. Joined in some places by elected MLAs and MPs, and backed covertly by a section of District...

The Supreme Court on Monday declined to interfere with a Gujarat High Court judgment dismissing a petition which challenged land acquisition by the State government for the Tata Motors’ Nano project at Surendranagar. Rejecting the public interest litigation petition filed by the NGO, Rashtriya Kisan Dal represented by H.K. Thaker, Chief Justice of India K.G. Balakrishnan asked him: “You don’t want industrialisation of Surendranagar? Gujarat is the second most industrialised State.”...

The Supreme Court today dismissed a Gujarat farmer’s petition against allotment of fertile agricultural land in Sanand for Tata Motors’ Nano project. “You cannot complain that only barren land should be used for industry and not agricultural land, once the land has been taken over,” Chief Justice of India K.G. Balakrishnan said. The Narendra Modi government had allotted the 1,000 acres, about 30km from Ahmedabad, last year after Tata Motors withdrew from...

While the state has to act transparently in awarding tenders, it has more elbow room in the matter Though the government is not perceived as a good business partner, yet its contracts are attractive on many counts. There is more elbow room for making profit. Therefore, agreements for infrastructure and services are coveted. Many of them, however, land in the court because the government has much more leeway in the selection...