Liberalisation has failed to remove Inspector Raj: Assocham | india | Hindustan Times
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Liberalisation has failed to remove Inspector Raj: Assocham

A study by Assocham says India's much-touted economic liberalisation has remained unsuccessful in removing 'Inspector Raj' system.

india Updated: Jan 07, 2007 12:39 IST

India's much-touted economic liberalisation has remained unsuccessful in removing 'Inspector Raj' system and is still restricted to central level, according to a study conducted by industry chamber Assocham.

According to a study titled 'Eco Pulse', which interviewed over 300 CEOs and MDs, 90 per cent of the respondents felt liberalisation was still restricted to central level and had "neither altered nor abated the menance of Inspector Raj".

As many as 40 inspectors and government functionaries keep on visiting the premises of factories on the pretext of inspecting them with ulterior motives to fleece their promoters and owners and harass them as well, the survey said.

The worst victim of inspectors' fury is small and tiny sector followed by medium and large industries, with 30 per cent of the respondents feeling that large firms were spared as their promoters enjoyed easy access to power and policy makers.

Earlier, the number of visiting inspectors was restricted to 30 which has now shot up to 40, the study said.