In India, one of the common threads that run through many of the corruption scandals is the issue of conflict of interest i.e. public officials taking policy decisions based on their personal interest. For example, Shashi Tharoor in the IPL controversy or Ashok Chavan in the Adarsh Housing Society scam. Many countries take measures to minimize conflict of interest of its MPs by regulating membership of parliamentarians in Committees, making it mandatory for them to declare pecuniary interest, and restricting employment both during and after completion of tenure. For example, the US Senate has a detailed Code of Official Conduct that provides guidelines on conflict of interest. India also has some measures in place to minimize conflict of interest. These are codified in the Code of Conduct for Ministers, Code of Conduct for Members of the Rajya Sabha, Rules of Procedure and Conduct of Business in the Lok Sabha and Rajya Sabha and Handbook for Members of Lok Sabha and Rajya Sabha. Every Rajya Sabha MP has to declare his or her interest (along with assets and liabilities). He has to declare five pecuniary interests: remunerative directorship, remunerated activity, majority shareholding, paid consultancy and professional engagement. Lok Sabha MPs can object to another MP joining a parliamentary committee on grounds that he has personal, pecuniary or direct interest. (For more details, see PRS note on Conflict of Interest Issues in Parliament). On December 1, 2010, PRS held its annual Conference on Effective Legislatures. One of the topics discussed was MPs and Conflict of Interest: Issues and Resolution. Panelists included D Raja, Prakash Javdekar and Supriya Sule. Issues such as requirement for transparency, expertise of legislators, election of honest legislators, and ethical media were discussed. The issues that were raised during the discussion are summarised in the PRS Summary of Proceedings from the Conference.
Both Lok Sabha and Rajya Sabha have seen disruptions this morning on the issue of FDI in multi-brand retail. The issue may be discussed in Parliament under various procedures. We have explained these in an Op-Ed in today’s Indian Express. The summary is given below.
In sum, there are several methods. with different political implications. available to MPs who would like a debate on the FDI issue. A no-confidence motion would question the continuance of the current government. An adjournment motion could censure the government. A motion under Rule 184 or to annul the FDI regulation could require reversal of the policy. A debate under Rule 193 (without a vote) would only require a response from the minister.
The stance taken by various parties will be based on a combination of their views on the issue, the potential costs to the stability of the government under the given procedure, as well as the likely positions that other parties may take. This may guide the choice of procedure adopted by parties that want to raise the issue.