Full disclosure mandatory for all corporate entities, including multinationals

Sandesh Prabhudesai in Panaji

India is poised to become the first country in the world to make full disclosure mandatory for all corporate entities, including multinationals.

This, said Justice P B Sawant, chairman of the Press Council of India, will happen as soon as the Right to Information Bill, which he has drafted, becomes law.

As of now, the Bill has taken the first step towards getting there, being under the scrutiny of a government-appointment committee. Once the committee gives it the all clear, the Inder Kumar Gujral government at the Centre is scheduled to place it before Parliament.

The Bill, in fact, features prominently in the Common Minimum Programme of the United Front government -- which in turn means that the government is committed into enacting this piece of legislation.

"The Indian economy, as a result of liberalisation,is changing at a very fast pace and the private sector is becoming the dominant force," Justice Sawant argued. "The Indian people at large, in such a situation, have a right to know what's going on in the private sector."

Interestingly, the draft bill contains a provision making all Parliamentary proceedings public property -- a measure designed to make MPs and MLAs more accountable. "It (Parliamentary proceedings) can't remain the property of the House, except where remarks have been expunged by the Speaker," he said, arguing that "Elected members are the agents of the people. How then can the MLAs and MPs hide information from the people? There is no justification for this."

The former Supreme Court judge also feels the Official Secrets Act and the Rules of Conduct for bureaucrats will need to be amended accordingly, and the powers of the Lok Pal widened, to really give teeth to the proposed legislation.

Welcoming the Right to Information act passed by the Tamil Nadu Assembly, Justice Sawant alleged that an attempt by the Madhya Pradesh chief minister to enact such legislation was stalled by the deputy chief minister, members of the state cabinet and bureaucracy.

In this context, Justice Sawant clarified that the draft bill, once cleared by the Centre, would be binding on all states.

Interestingly, the judiciary has not been brought within the purview of the draft bill. Questioned about the omission, the judge argued that the Constitution does not include the judiciary when it defines the State.