Why Lobbying is equated with corruption in India?

Lobbying is arguably one of the most controversial activities in modern democracies. Lobbyists provide governments with valuable policy-related information and expertise but if the activity is not transparent, public interest may be put at risk in favour of specific interests. It is easy to equate lobbying, which is an attempt to influence policy through legal and ethical means, with corruption in India because a large chunk of the population believes that almost every dealing with the government requires bribes to be paid to officials. Lobbying is a dirty word in India, one reason being that lobbying activities were repeatedly identified in the context of corruption cases. For example, in 2010 , leaked audio transcripts of conversations of an influential Indian lobbyist, Nira Radia, revealed suspicious dealings between the government and several business groups , reinforcing public perceptions about lobbying.

In reality, lobbying is not corruption; at least not the western model that is increasingly gaining traction in India, as an open economy pulls in new rules of engagement from developed economies. Given that most foreign companies have to follow strict anti-corruption laws in their own countries, few are keen to come under the lens of their regulators, lose face and pay fines. The Indian government itself spends millions of dollars every year to influence the U.S. government and other interest groups there. Few examples include:

♤ Ranbaxy paid $90,000 to Patton Boggs to preserve access to affordable generics.

♤ Wipro, like many Indian software firms, lobbied in the U.S for favourable visa policies.

♤ Not only private companies but even Indian government has been paying a fee every year since 2005 to a US firm to lobby for the Indo-US civilian nuclear deal. As reported by the Daily Mail in November 2012, Washington-based Barbour Griffith & Rogers (BGR), hired by the Indian embassy, also used to seek media interviews for Prime Minister Manmohan Singh and get Congressional resolutions passed in his support ahead of a US visit.

While lobbying is not a new phenomenon in India, it is largely unregulated. There are no laws that defined the scope of lobbying, who could undertake it, or the extent of disclosure necessary. Companies are not mandated to disclose their activities and lobbyists are neither authorized nor encouraged to reveal the names of clients or public officials they have contacted. The distinction between lobbying and bribery still remains unclear.

A private member’s Bill to regulate lobbying, Disclosure of Lobbying Activities Bill, 2013, was introduced in the Lok Sabha by Kalikesh Narayan Singh Deo, which defined the term as “an act of communication with and payment to a public servant with the aim of influencing” legislation or securing a government contract. The Bill required lobbyists to register with an authority and declare certain information.

It is not lobbying that is the problem, but the lack of transparency, lack of comprehensive regulations and lack of mechanisms to monitor the activities of the powerful that is at the root of the problem. Right to Information Act (RTI) is a good step in this direction. But until comprehensive levels of transparency are achieved, legalising lobbying would mean no good. Also, regulations need to evolve and be documented in an iterative manner before embarking upon such a move. India needs to determine a regulatory model that suits its socio-political needs. Furthermore, it should tread a fine line while drafting the disclosure requirements. Very high disclosure requirements could drive lobbyists underground while very low penalties may not act as sufficient deterrent for law-breakers.