Opinion The Unravelling of Institutions

2. Navin Chawla’s original appointment was extremely controversial. But the manner in which Mr Gopalswami has written to the government will do even more harm to the institution. The timing certainly smacks of malafide. The fact that the allegation of partisanship has been made only by one Commissioner is odd. Mr Gopalaswami should have realised exactly what he alleges: that a Commission should not only be fair,it should be seen to be fair.

3. The outcome is,as always,a plague on all your houses. On the Congress,for appointing Chawla,on Gopalswami for being unilateral and arbitrary,on the BJP for not recognising the danger in Gopalswami’s position.

4. This episode is also symptomatic of just how politicised civil servants have become. If we are now no longer sure of the allegiances of constitutional functionaries,think of what is happening at the lower level.

At one level the inability of SEBI to get access to B Ramalinga Raju looks like a world apart from the CEC. But it also points to other weaknesses in the way we design institutions.

1. In the case of SEBI,it is not being allowed to fulfil its core functions. It needs to get access to Raju to help establish the extent to which Satyam will have an effect on other companies. This morass had been predicted by every knowledgeable observer. An interesting paper is waiting to be written on why SEBI did not get untrammelled authority in this case.

2. The Courts are going for a misapplied legalism. As some have noted,there is delicious irony in the fact that SEBI could have asked Mr Raju for information when he was not accused of anything. But they will find it difficult to get access to him,now that he faces other charges.

3. Core message for governance. Multiple agencies,criss-crossing jurisdictions are a recipe for disaster. Multiplicity is evasion by another means.

4. Some of these matters of forms and structure can be resolved by different agencies cooperating informally. But then it comes down to the basic question: What do these agencies think they are for?

The checks and balances in our democracy depended upon independent regulatory institutions,well designed,properly staffed and with unimpeachable credibility. The Supreme Court,Election Commission and SEBI were among the best-run institutions. All three have taken a knocking. The Supreme Court scored an own goal on the assets issue. The Election Commission wilfully created a constitutional and political crisis. And SEBI cannot be where it is needed most. Pray for our liberties.