Speech of Amrish Patel, Gen. Secretary, New Socialist Movement

In the Convention against Communal Fascism and Globalization

At Kolkata on 26^th September 2005.

I come all the way from Gujarat, the State which has now come to be known as the Laboratory of Hindutva. By calling it the Laboratory of Hindutva, we would however be restricting the significance and the objective of ruling classes and their political parties in Gujarat. Undoubtedly, the communal carnage of 2002, carried out against the minorities in Gujarat by Sangh Parivar, overshadowed the other anti-people and anti-poor actions of the ruling elite but over emphasizing the communal aspect would hide the true class character of the ruling elite of Gujarat. In reality, what happened in 2002 was a glimpse of communal-fascist practice of the ruling elite in the era of globalization. Gujarat is not just a Laboratory of Hindutva but also the fertile land for the birth and growth of the economics and politics of Globalization!

Gujarat in fact has just the right history to invite and embrace the foreign dominance. Let us remember that way back in 1608, the ships of the East India Company had first arrived in India, at the port of Surat. Sir Thomas Roe reached the court of the Mughal Emperor, Jahangir, as the emissary of King James I in 1615, and gained for the British the right to establish a factory at Surat. Today Surat is one of the most flourishing cities of Gujarat, the gate way for the earliest European infiltration in India. Manmohan Singh, one of our most ardent collaborator of the Global power, even a few months back, while visiting London, heaped praises for the East India Company and the British rule in India. Manmohan Singh was only echoing the thoughts of Pravin Togadiya, the International General Secretary of Vishwa Hindu Parishad, who in a larger context had declared in a T.V. Interview that Christian civilization and the Hindu civilization were the creative forces on this earth whereas the Islamic rulers were destroying the civilization. Togadiya therefore suggested the alliance between the Christian and the Hindu civilization to confront the Islamic world, which he held to be responsible for destroying the WTC buildings in New York on 11^th September, 2001 and the Ayodhya Mandir in the 1600s! An alliance between the Christian civilization and Hindu civilization in the present era can only mean the alliance between the forces of Globalization and the ruling classes of India apparently led by the Sangh Parivar! Togadiya may appear like a lunatic, but his thinking is absolutely clear. For him Hindutva is not just beating up a few Muslims in Ahmedabad or Godhra but is the ideological basis for creation of a Hindu Rashtra – an ally of the Global forces led by Bush and Blair. Togadiya is perhaps the only public figure that openly exhorted the Government of India to send the Indian Military to support and fight alongside the forces of Bush and Blair in Iraq! That’s the reason I said that Gujarat should not be seen as a Laboratory of Hindutva, but the Indian crucible of globalization.

The success of BJP in Gujarat of fascisizing the State machinery can only be compared with the Nazi Rule in Germany in the 1930s. The diabolic use of the Godhra incident to falsely project the Muslims of Gujarat as terrorists and instigate the Hindus to commit genocide of 2002 with the fullest support of the State administration including the police was the starting point of dividing the society in communal lines. The hate campaign against the Muslims and projecting them as cause of all problems in India and more particularly projecting them as terrorists is just the situation that Hitler had created against the Jews in Germany and this tactics is a part of the larger game plan to divide the country on communal lines in order that BJP can assume the role of the “savior of the Hindu majority”.

The New Socialist Movement realizing the game plan of the fascist forces, had made in depth enquiry into the Godhra incident and on the basis of the information available from the Nanavati commission has been able to clearly establish that Godhra incident was absolutely a spontaneous incident and that there was no conspiracy or pre-planning by any muslim group to burn the S-6 coach at Godhra, or to kill any passengers of the Sabarmati express as alleged by Modi. Infact the fire itself was accidental. This finding of Jan Sangharsh Manch a sister organization of NSM, had been made public and it appears that the Banerjee commission had also come to the same conclusion. By participating through its representatives in the Nanavati Commission, great amount of information has been brought out before the public regarding the direct collusion between the police and the BJP and the VHP activists who had killed thousands of innocent muslims after the Godhra incident.

The cross examination of police officers like Sreekumar, P C Pandey brought out the facts that it was Narendra Modi who had ordered the dead bodies of the Kar Sevaks who had died in the Godhra incident, to be brought to Ahmedabad for the purpose of instigating the majority community. Cross examination of Sreekumar had revealed that systematic attempts were made by the BJP leaders and ministers to sabotage all police investigations into the incidents of killing and looting of the minority and it was revealed that the police officers were obeying the political bosses rather than the superiors. By our effort therefore we could expose the truth of Godhra as well as post Godhra events and our efforts continue in that direction.

Immediately after the post Godhra incident the Narendra Modi Government in order to suppress the Muslim even further, had deliberately used POTA against the innocent Muslim youths and had arrested 100s of such young people dubbing them as “terrorist”. The complete denial of legal justice to muslims, both the riot victims and the POTA victims was a well planned strategy for fascisizing the entire state machinery with the tacit support of the civil society. After having gained the sanction of the civil society for their fascist rule, the attacks against the other sections of the oppressed people started. The slums of the urban poor started being demolished without any notice, without any protest coming from the civil society. The working class also came under sharp attack and their rights to minimum wages, regularization were systematically taken away. Under the new agriculture policy, corporate farming and contract farming are being promoted in a big way and under the corporate farming policy, large tracts of land in the villages which are presently owned by the Government are to be leased out to big companies for agricultural purpose. Presently thousands of dalits and other poorer sections of the people live on such lands and also grow some food for their own consumption. The corporate farming would deny to such people even this minimum resource. This being the situation the New Socialist Movement along with Jan Sangharsh Manch had created a larger platform for struggle called the Gujarat Janandolan where on one hand the minorities were organized to join the democratic struggle for their own rights and on the other hand, all other sections of people like the working people, dalits, farmers and slum dwellers were organized to struggle against the anti-people, anti-poor actions of the Gujarat Government. The May Day rallies of the last three years were memorable in the sense that for the first time in the history of Gujarat, muslims, dalits, farmers, slum-dwellers and other sections of the oppressed people united to rally against the policy of the BJP government of Gujarat. A convention against the communal fascism and globalization which was held in Ahmedabad on 10^th September 2005, primarily by NSM and CPI(ML) in which many of our CPI(ML) comrades had participated had received an overwhelming response from all oppressed classes and after the convention, a very militant rally through the sensitive areas of Ahmedabad was successfully taken out.

The New Socialist Movement is therefore a rising tide of struggle against the communal-fascist forces in the era of globalization and NSM reaches out to all revolutionary movements which are directed against the global forces and the their domestic lackeys.

We are of the opinion that after the Second World War, the old imperialist powers (Britain, France, etc.) that had dominated the world for past 300 years have joined the new imperialist forces (USA, Germany, Japan, Italy, etc.) for the purpose of exploiting the wealth and the labour of the rest of the world. They now do it under the new banner of globalization, under which they create international organizations like World Bank, WTO , IMF etc. and force all other countries to abide by their norms. Realizing that in this era of globalization the contradictions would sharpen as the world’s economy goes from one crisis to another, the global powers are determined to curb the democratic rights of the people so as to suppress their struggle. Scuttling the democratic framework and promoting the fascist tendencies are therefore the hallmark of globalization. The Gujarat carnage of 2002 led by Narendra Modi is thus the manifestation of politics of globalization. Let us not forget that in the last four years, the Americans have destroyed the sovereignty of two countries, namely, Afghanistan and Iraq in the name of fighting “terrorism”. It should also be remembered that the Americans never condemned the Gujarat carnage.

NSM is of the considered opinion that the following contradiction should be addressed at the present stage in India.

1. The contradiction between the forces of globalization and the broad masses of working people of India.

2. The contradiction between the Indian bourgeoisie and the broad masses of the working people of India.

3. The contradiction between rural and agrarian masses on one hand and the big farmers and the corporate houses in the agrarian sector on the other hand.

The broad masses of people of India are already engaged in resolute struggle to overcome the above contradictions, despite fierce oppositions from the political establishments like NDA and UPA and their supporters. Struggle against the MNCs, struggle of the dalits and minorities, struggle of the working class against the privatization and liberalization, struggle of the slum dwellers against the demolition of their slums, struggle of the rural poor against the policy of corporate farming are but the manifestations of the struggles in relation to the three contradictions stated above.

Today in India, almost all organs of the state are bending over to support the forces of globalization and the judiciary is no longer an exception. In recent times the judiciary as infact over turned all the pro-labour judgments. So acute is the situation that it would be the bounden duty of all the revolutionary forces to come together to defend the rights of the broad masses of the working people of this country. Even if the different organizations representing the struggling masses are not able to immediately resolve their ideological differences, it would still be an absolute necessity for all revolutionary organizations to come together with the common understanding of fighting the global forces and their lackeys in India. Needless to point out, one of the primary struggles should be directed against the communal-fascist forces and defend the democratic rights of the working people. On behalf of NSM therefore, I call upon all organizations participating in this convention to come together and form a common platform for direct struggle. Let not the tactics of the ruling elites of Gujarat overwhelm the country, rather, let the working people overwhelm the reactionary forces of Gujarat and not permit the Gujarat experiment to succeed anywhere else.

GLOBALIZATION- The Impact on Judiciary

(Dr Mukul Sinha)

As the world emerged from the yoke of feudalism in the 17^th & 18^th century, the State structure itself was undergoing a metamorphosis. Capitalism was ushering in the modern republics replacing the feudal State dominated by the nobilities. The initial phase of capitalism in Europe, the free competition era demanded a democratic state structure with an emancipated Judiciary free from the control of the executive. Though the judiciary did emerge out of the shadows of the executive, justice still eluded the vast army of the proletariat, who continued to work under miserable conditions. The Judiciary really catered for the rich and the property holders. To follow the dynamics of the Judiciary in the last two centuries, it may be necessary to recall the changes in the economic structures across the world during this period.

The feudal colonial period:

This period goes back to the fifteenth century when the King Henry the VII th, who ruled over the British empire between 1485 to 1509, created the Royal Navy for the ostentatious purpose of protecting the maritime interests of the empire. The Royal Navy, which became an invincible naval force under Queen Elizabeth-I, became the vehicle to carry the British rule across the seven seas. Starting with the New Foundland in 1583, the British rule was established in far away countries like North America, Canada Atlantic provinces, Jamaica, Barbados and then Australia (1788), New Zealand (1840), India (1857) etc. By the end of the nineteenth century, the British Flag was fluttering over 1/4^th of the world covering over 14.3.million square miles. Similarly, the French empire ruled over a large part of the world including few places in India (Pondicherry, Chandannagar) starting from 1804, the beginning of the conquest of Napoleon Bonaparte. The Portuguese empire lasted even till as late as 1999 when Macau was finally handed over to the Chinese.

This process of capturing the foreign land during the initial phase (Starting from around 1600) led to the pre-capitalist accumulation of capital through trade, commerce and sometime plain loot and slave labor. After the establishment of capitalism in their own countries, the thirst for larger control over other countries for raw material and market became far more acute and during the second half of the 19^th century, the British Empire expanded by more 75%.

Thus even after the establishment of the Capitalist rule (the French revolution of 1790 being the hallmark), the countries in which the capitalist rule flourished {British empire being one of them} continued with the colonial exploitation to fuel its rapid capitalist development. Within its own colonial boundaries, the free capitalism converted themselves into monopoly capitalism and by the end of the 19^th centuries, Britain, France, Portuguese etc had become imperialist powers dominating the Globe. The colonies in Asia, Africa etc remained primitive suffering the worst oppressions. There was hardly any Justice delivery system for the people of the colonies.

The first World War and rise of the Soviet Union:

The contradictions amongst the existing imperialist powers { British empire, France, Portuguese etc} and the new imperialist powers {Germany, Japan, Italy etc} led to the first world war (1913-1918). In this period, the Soviet Union emerged out of the war torn Russia with its Socialist agenda. From a backward capitalist country, Russia surged ahead and became a economic giant by 1940s.

During this same period, the “beggar thy neighbor” policies of Capitalist countries in 1930s governments—using currency devaluations to increase the competitiveness of a country’s export products in order to reduce balance of payments deficits—worsened national deflationary spirals, which resulted in plummeting national incomes, shrinking demand, mass unemployment, and an overall decline in world trade. Trade in the 1930s became largely restricted to currency blocs (groups of nations that use an equivalent currency, such as the “Sterling Area” of the British Empire). These blocs retarded the international flow of capital and foreign investment opportunities. Although this strategy tended to increase government revenues in the short run, it dramatically worsened the situation in the medium and longer run. This was the direct reason for the Great Depression of the 1930s.

Post Second World War and first Phase of Globalzation:

The second world war of course made it impossible for the old imperialist powers to continue their hegemony as in past and the war gave rise to three new developments:

1. The colonies, over which the old imperialist powers were ruling over centuries were also rising demanding political independence. The ongoing independence struggles managed to grab political freedom in certain countries under the capitalist leadership (like in India in 1947) whereas in some cases political freedom was won under the leadership of the Communist parties (like in China in 1949). Soviet Union became the model for development for many of the new independent countries like India.

(2) The erstwhile imperialist powers and the new capitalist countries like America, Germany, Japan etc realized that the past method of imperialist appropriation would no longer work. A conference was called at Bretten Wood to hammer out a new prescription of imperialist appropriation.

The rules of Bretton Woods, set forth in the articles of agreement of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), provided for a system of fixed exchange rates. The rules further sought to encourage an open system by committing members to the convertibility of their respective currencies into other currencies and to free trade.

(3) The weakening of the old Imperialist powers, the influence of Soviet Union and China on the working people , the creation of several independent countries and the Bretten Wood agreement led to the concept of “Welfare State” in the West. Health, Education, Pension etc became the State responsibilities and the Judiciary was made sensitive to the rights of the working people.

The post IInd world war period therefore saw a tremedous rise in Judicial activism in the Capitalist countries and India which was already under the influence of the Nehruvian socialism, heralded the glorious phase of Judicial development. From Gajendragadkar to Krishna Iyers, Chinappa Reddys and D.A.Desais etc, rewrote the LAW. The aim was social justice and grant of rights to the poor and exploited!

Second Phase of Globalization:

No amount of solemn agreements can however hide the true predatory nature of the Capitalist countries. Post Bretton Wood also saw several attempts to put the house in Order including the creation of the World Trade Organization (WTO) but Capitalism can only go from one crisis to another. The collapse of the Soviet Union around 1985 heralded the final end to the dream of the millions for an exploitation free world. The age Global capital of “free market” and rule of WTO had started. All trade tariffs were to be demolished and free access to all markets were to be guaranteed. Thus begins the last phase of Globalization.

In this phase, the Globalization had to be accompanied by liberalization and privatization since, in the second phase, the “socialist distortions” had to be corrected. LPG was therefore the motto which should lead to the complete establishment of the capitalist system all across the globe, hopefully without any further resistance to the exploitation!

The law follows the economy:

With the collapse of Soviet Union and integration of the nation states into a single global economic system, Profit, market and competition became the buzz words. Social welfare spending, subsidies, even Pensionary benefits have now become wasteful expenditures. Extraction of maximum surplus has become the key to success. The LAW had to therefore follow the economic compulsions of the ruling class. The immediate impact was therefore felt in the realm of labour law since the maximization of the profit depends on the maximization of the extraction of the surplus value of labour. The rights of the labour had to be therefore curbed or taken away altogether.

The Changes of LAW between 1985 to 2007:

1. The most efficient method to extract the maximum surplus out of the labour is to make his/her employment itself insecure. An unorganized or insecure labor is best available as either a contract worker or a temporary hand. All legal pronouncements that give legal rights to such workmen to become direct and permanent was therefore required to be done away with.

The 3 bench Judgment of the Supreme Court in the case of Airport authority giving right to the contract worker to become a direct workman in case of abolition of the contract labor system was thus reversed in 2002 by another bench of five Judges.

Similarly, the series of Judgments of the SC ending with the Pyara Singhs case giving right of permanency to the daily wage workers who had completed 240 days was reversed by a larger bench in 2006 in the case of Karnataka State Vs Umadevi.

2. As a Welfare State, the Indian Parliament had enacted the Minimum Wages Act guaranteeing the payment of the minimum wages to the workmen as mere subsistence for survival.

In the cases of PUDR vs UOI and Raptakos, the SC in 1980/ 1990s had held that non payment of minimum wages would amount to “Forced Labour” which was prohibited by our Constitution and had held that if an Industry cannot pay minimum wages, it ought to close down! In 2006, the same Supreme Court in the Umadevi’s case has glossed over the non-payment of minimum wages by observing that such a payment was accepted by the workmen with open eyes!

3. The Industrial Disputes Act was created to adjudicate on the disputes between labour and employer and for that purpose wide powers were given to the labour Courts and Industrial Tribunals to grant relief to then workmen. In case of wrongful termination or punitive discharge, the labour courts could reinstate the employee with full back wages. Any termination in violation of section 25 F of the ID Act was to be struck down with reinstatement with full back wages.

Till around 2000, the above was the settled law by the Supreme Court. Globalization however changed all that. Hire and fire had to be introduced through the back door though such a concept is still alien to the statutory law. The SC judgments that are now prevailing in this area have discontinued the payment of full back wages even though the termination could be wholly illegal. Minor misconduct can now be visited with the extreme punishment of dismissal. Violation of 25F would no longer make a termination automatically void. Prejudice have to be established!

These are but few of the important changes that have been brought about by the Supreme Court in just the last few years. Some of the Judgments with more detailed illustrations are given hereinafter. The point however is to ask – was an independent Judiciary created world over after the French revolution to cater to the interest of only the ruling classes or to they have a larger democratic role to play for the whole population?

Judgment of Supreme Court in Globalization Era:

1. Nagar Mahapalika(Now. Municipal Cor.) V/s Govt. of NCT of Delhi

2006 AIR SCW 2378.

Employee appointed dehors rules should not be granted the relief of reinstatement even if his termination of service is found to be violative of Sec. 25-f.

2. Secretary State of Karnataka V/s State of Karnataka

2006 AIR SCW 1991.

Art. 14, 16- Employment of daily wage- confers no right of permanent employment – Daily wager appointed on less then minimum wages that was made known to him- Not forced labour- Continued on post for long period- Daily wagers from a class by themselves – They cannot claim parity vis-a-vis those regularly recruited on basis of relevant Rules and cannot be made permanent in employment.

3. Abhijit Gupta V/s S. N. B. National Centre.

2006 AIR SCW 2102.

Art. 311, Termination of service- Probationer- Discontinuance- Stigmatic of termination simpliciter- Probationer’s attention drawn time to time to his deficiencies and was advised to improve his behavior, conduct and work- After giving long rope to probationer to improve- Order of discontinuance stating that his performance was unsatisfactory, passed- Order cannot be said to be punitive- Fact that intemperate language was used in some earlier letters- Irrespective.

4. General Manager, Indian Overseas Bank V/s Workmen, All India Overseas Bank Employees Union.

2006 AIR SCW 1520.

Sec. 2 (b)- Workmen- Jewel appraisers appointed by Indian Overseas Bank- Are not employees of Bank.

5. State of Karnataka V/s KGSD Canteen Employees Welfare Asso.

2006 AIR SCW 212.

Regularization of Service- Employees of canteen run by the State Govt. Secretariat Dept. Association- Put in ten years of service- State had no statutory compulsion to run and maintain any canteen for its employees -State has no intention to run and maintain canteen as department- In circumstances direction by High Court for regularization of services of said employees as State Govt. employees. -not proper.

Art. 16, 39(d)- Parity in pay scale- Employees of canteen run by the State Govt. Secretariat Dept. Association- Put in ten years of service- They did not hold post- No post for canteen was sanctioned by State- According to State they were found to be not employees of State- Plea by employees that at least for period they have worked they were entitled to remuneration in scale of as that of Govt. employees- Would not tenable.

6. U.P. State Brassware Corp. Ltd V/s Udai Narain Panday

2005 AIR SCW 6314.

U.P. Industrial Disputes Act, 1947 – S. 6N, 6O – Industrial Disputes Act, 1947 – S. 25F – backwages – appointment on daily wage basis for a fixed tenure – after expiry of the tenure workman was terminated – industrial dispute was raised – industrial undertaking run by the State Corporation was closed Labour Court held that the workman had worked for more than 240 days in each year therefore, his retrenchment of the workman was in violation of Sec. 25F of I.D. Act – reinstatement with full backwages for the period between 1.04.1987 till 26.03.1993 were awarded – whether the workman is entitled to full backwages – held, no precise formula can be laid down as to under what circumstances payment of entire backwages should be allowed – workman should raise the plea that he was not gainfully employed during the said period – in the interest of injustice, on facts, 25% backwages for the said period awarded – impugned judgments of High Court and Labour Court set aside – appeal partly allowed.

7. The Regional P. F. Commr. V/s M/s. Central Aercanut and Coca Marketing and Processing Co. Op. Ltd.

2006 AIR SCW 449

Apprentice/ trainee engaged under Apprentices Act of under standing orders – Is excluded.

8. K. Verma V/s H.M.T. Ltd.

2006 AIR SCW 460.

Verbal abuse to superior officer- Sufficient for inflicting punishment of dismissal on delinquent.

9. Madhyamik Shiksha Parishad V/s Anil Kumar Mishra.

2005(SCC L & S) 628

INDUSTRIAL DISPUTES ACT, 1947 – S. 25B – respondent’s engaged by appellant for same casual work – purely ad hoc assignment – no sanctioned posts in existence – respondents worked for more than 240 days before their assignment was discontinued – discontinuance of service challenged on the ground that they have completed 240 days of service and entitled to benefits of regularization of services under provisions of Industrial Disputes Act – merely completion of 240 days’ work does not under that law import the right to regularization – order of High Court set aside – appeals disposed of accordingly.

IMP(s):[4]

10. STATE OF HARYANA Vs. DEVINDER KUMAR

Equivalent Citation(s): 2005-SCC-12-253,

Service and Labour – appellant challenged award of reinstatement of respondent-workman – respondent filed second writ petition during pendency of first petition claiming of regularisation of his service – High Court granted said relief – employer contended that so long as award of reinstatement was under challenge before High Court and operation of which stands stayed, respondent workman could not have been granted relief of regularisation – held, respondent cannot have been granted relief of regularisation so long as award of reinstatement was under challenge – impugned order set aside – petition remanded for its disposal – appeal allowed.

IMP(s):[5]

11. State of Maharashtra Vs. R.S.Bhonde

Equivalent Citation(s): 2005-JT-7-400, 2005-SCC-6-751

Maharashtra Recognition of Trade Unions and Prevention of Unfair labour Practices Act, 1971 – S. 28 – Schedule IV, Item 6 – respondents engaged as daily wagers on seasonal basis in appellant no. 2 University – respondents seeking regularization alleging that although the were daily wagers but were performing work of permanent nature which amounted to unfair labour practice – Industrial Court accepting respondent’s claim ordered University & college to make the respondents permanent subject to approval of the State Government – High Court modified the said order by adding words “subject to prior approval of the State Government” – thereafter, respondents filed writ petition to enforce the Industrial Court’s order in its original form – High Court allowed the writ petition holding that as S. 50B of the University Act was repealed, there was no necessity to take approval of State Government – appeal – held, order of High Court is untenable as the modified order of Industrial Court was not challenged and had become final – repeal of S. 50B of University Act did not take away the effect of the modified order – impugned judgment of High Court not maintainable, set aside – regularization of respondents that has already taken place, will take effect from passing of order of regularization and not from the date directed by High Court – appeal allowed.

IMP(s):[6][7]

12. State of Uttar Pradesh Vs. Jai Bir Singh

Equivalent Citation(s): 2005-JT-5-170, 2005-SCC-5-1

Hon’ble Judges: N.S.Hegde, K.G.BALAKRISHNAN, D.M.DHARMADHIKARI, ARUN KUMAR AND B.N.SRIKRISHNA,JJ.

ACTS:

INDUSTRIAL DISPUTES ACT, 1947;S.2(j);

Industrial Disputes Act, 1947 – S. 2(j) – term ‘industry’ – meaning of – taking in view Supreme Court’s decision in Banglore Water Supply case, term ‘industry’ was amended – whether ‘Social Forestry Department’ is ‘industry’ – consideration of conflicting judicial views – three Judges Bench held that said department is covered by the term ‘industry’ – two Judges Bench had taken contrary view in Pratamsigh Narsingh Parmar’s case – held, worker oriented approach in construing definition of industry unmindful of interest of employer or owner of industry and public would be one sided approach – activity must be ‘analogous to trade or business in a commercial sense’ in order to encompass activity within word ‘industry’ – Supreme Court must reconsider where line should be drawn and what limitations can and should be reasonably implied in interpreting wide words used in S. 2(j) - larger bench shall give such meaning and effect to definition clause in present context with experience of all these years and keeping in view amended definition of ‘industry’ kept dormant for long 23 years – cases should be placed before Hon’ble Chief Justice of India for constituting suitable larger bench for reconsideration of judgment of Supreme Court in case of Bangalore Water Supply – appeal disposed of accordingly.

IMP(s):[39][41][42][44][45][48][51][52][53]

13. Punjab Dairy Development Corporation Ltd. V/s Kala Singh 1997 (2) LLN 1017.

R. Thruvirkolam V/s Presiding Officer and another

1997-1-LLN-126

Dismissal- Theory of relation back- Where Labour Court records a finding that the domestic enquiry in the case of dismissal of employees was defective and gives opportunity to adduce evidence by management and workmen and records a finding on the basis of evidence that dismissal of employee was valid, it would relate back to the date of original dismissal and not from the judgment of labour court.

Please find the PDF version of the document here.

Pauperizing the rural masses

Contract and Corporate Farming – Globalisation of Agriculture in India

(Exposing 743 million people in rural India to the exploitation by multi-national agro-industries.)

National Agricultural Policy (NAP) of Govt. of India announced in 2000 envisaged that “Private sector participation in Agriculture shall be promoted through Contract Farming and Land-leasing arrangements (Corporate Farming) to allow accelerated technology transfer, capital flow and assured markets for crop production (with emphasis on oilseeds, cotton and horticultural crops)”.

It proposes major intervention in the agriculture sector through contract farming by corporations rather than farmers growing their own crops on their own lands, consolidation of small farmlands into larger landholdings and introduction of export oriented cash crops.

The enabling role of the government seems to work only in one direction: assisting the export houses, processing units with public finance measures.

Gujarat Government issued two Govt. Resolutions (GRs) on April 11 and May 17, 2005 on Contract Farming and Corporate Farming respectively. The stated purposes (among many others) are to modernize existing agricultural production and bring under agriculture the culturable and unculturable wastelands that are lying “unutilized”. The Gujarat Govt. GR on Contract Farming is on the same lines as suggested by Govt. of India but with some modifications (the latter relates to the refusal of the Gujarat Govt. to break the monopoly control of all trading in Agricultural Produce by the 225 Agricultural Produce Marketing Committees (APMCs) operating in as many talukas in the State. This GR allows tripartite seasonal, annual or long-term (3-5 years) contractual agreement between a farmer, a contract sponsor and the APMC of a particular region and with the sanction of the Gujarat State Agriculture Marketing Board the apex body controlling the state APMCs. A Model tripartite agreement on Contract Farming has been appended to this
GR.

The GR on Corporate Farming (expressing Gujarat Govt. policy on application of modern technology for converting Govt. owned wasteland to cultivable land) allows only big industrial houses and individual capable (big) farmers to take lease for 20 years, Govt. owned wasteland of 4.58 million hectares area to convert them to cultivable land, carry on agriculture production and produce value-added products. All incentives and encouragements will be provided by the state govt., which will charge nominal rents from the sixth year only. This GR makes no observation of current utilization of such land by communities and landless agricultural workers and only refers to DES report “Statistical outline – Gujarat State 2004”. This GR specifically prevents any initiative of individual small and marginal farmers in conversion of such wasteland into fit for agriculture and ignores any initiative already taken in this direction.

Unlike contract farming, this GR on corporate farming will allow direct involvement of big industries and financial institutions (and big farmers) in agriculture – including lease-ownership of the land for 20 years and controlling any use of such land in any way for “agricultural production”.

We will describe the two terms Contract and Corporate Farming which, if successfully implemented, will complete change Indian Agriculture irreversibly and complete the process of globalisation of India and the complete hold and rule of MNCs and Foreign FIs over India.

Contract Farming

This is a system for the production and supply of agricultural / horticultural produce under forward contracts between producer / supplier and buyers. Essential to this is the commitment of the producer/seller to provide an agricultural/horticultural commodity of a certain type, at a specified time and a price and in the quantity and quality required by a known and committed buyer.

There shall be a pre-agreement (the contract) regarding the price, quality, quantity (or acreage under the crop) and time of delivery of the produce.

The farmer/producer will be required to plant contractor’s crop on his land, harvest and deliver a quantum of produce (based on anticipated yield) to the contractor. He shall provide land and labour necessary for this. The contractor shall supply all required inputs for the production of the said crop.

Corporate Farming

Allotment of culturable and unculturable wasteland will be made to approved projects submitted for development of such land for cultivation and subsequent agricultural production.

A 20-year lease of such wasteland will be given to big business house and individual able (big) farmers.

The maximum limit of 2000 acres (810 ha) will be applicable for each allotment.

A mandatory clause for start of development activity within the first 5 years of allotment, otherwise it will lead to cancellation of the lease.

Easy loan shall be provided for expenditure on proposed development of land.

The allottee should develop modern micro-irrigation schemes and use techniques like drip irrigation, water harvesting structures etc.

The (highly subsidized) rental rates for the allotted land – free for first 5 years, Rs. 40 per acre for 6-10 years and Rs. 100 per acre beyond 10 years.

The allotted land can be mortgaged with prior permission of the concerned Collector and with conditions.

The allotted land may not be used for non-agricultural use, however, construction work on such land may be carried out with permission from competent authorities.

The expressed advantages of Contract Farming

The following are the main objectives of the system of contract farming

a) Increase in agricultural productivity / production due to organized and mechanized large-scale production, introduction of new/modern technology and assured inputs and outputs and improvement of quality of produce and larger capital investment in agriculture through banks and other financial institutions (domestic and foreign)

b) Introduction of value-added agricultural products and growth of agro-based industries. Export of agricultural products to world markets. (Currently India and China are classified as neither importer nor exporter of food grains and other agricultural products)

c) Enrichment of farmer-owner due to higher returns from his land and surplus generation.

The Real Issues

In one line – the issue is whether or not, Agriculture, the major sector in India’s domestic production, should be handed over to the MNCs and foreign financial institutes – i.e. complete globalisation of India (economic and political).

Out of India’s 1029 Million population (2001 census), 545 Million (53.2%) depend on agriculture generating Rs. 483 thousand crore out of 2249 thousand crore GDP (20.3% of GDP) (2002-3). This dominant sector has been relatively free from global exploitation, which is now being handed over in a planned manner through the NAP of Govt. of India with active cooperation of the State Govt. (including West Bengal which is on an overdrive to implement contract farming in consultation with foreign experts/consultants).

This NAP formulated by BJP led NDA Govt. in 2000 and re-emphasized in 2003 is actively pursued by Congress led UPA and all state govt.. Political positions have no bearing on this handing-over exercise. With the introduction of SEZ and AEZ (agriculture export zone) the message is clear – loot when you please, under the Indian Constitution and the garb of Democracy.

The NAP targets to bring 267 Million economically active persons involved in agriculture (out of 451 Million total – 2001 figures) under the control of global economy. No mention of “Second Green Revolution” is permitted now. This would have involved the process of doubling of food production in West Bengal, Bihar, Orissa, AP, Chhattisgarh, MP and eastern/central UP in a sustainable way by increasing the cropping intensity to 250 (from 135) and increasing the irrigated area from 40 to 60% of cultivated area.

“Disinvestment” of the Agricultural Sector

Just like exercise of disinvestment of the public sector under the garb of generating wealth and improvement of production under hi-tech and ultra-modern global private sector, agricultural production is similarly organized to promote ownership and control by private sector and specially the major global players.

All investments made by the central and state govt. in Agricultural Institutes, Agricultural Universities, Indian Council of Agricultural Research (ICAR), agricultural extension programmes etc. will then be either handed over to the private sector or dismantled. Just like in the process of disinvestment of the public sector, no thought will be spared for the immense role of such institutes etc and its shameless handing over to facilitate the enrichment of the private sector, mainly the global ones.

While corporate farming will be direct handing over land to the private sector for agricultural activities, contract farming will affect large number of farmers and area under active agriculture. The route to control over such productive land will be indirect through careful contracts, which will potentially be unfavourable to the cultivator in the long run.

The important outcome of successful contract farming system will be

Change of production relation in agriculture

Producer-owner reduced to worker-owner in a rental system by contract

Agricultural production for market and profit and not for need/consumption

New “needs” will be created – replacing conventional needs

Replacement of conventional stable production system

Transforming food grains-oriented agriculture to cash crop-oriented agriculture”, “Producing crops that are in demand in the international market”, and “Developing agricultural export zones

Destruction of self-dependence on food grains

Due to large-scale mechanization, contract farming would lead to larger number of landless peasants, who would then work as contact laborers in villages on in the cities.

Large-scale migration to urban areas – further depression of wages of industrial workers

Cornering of all inputs to production and markets by the big agro-industries (monopoly in agriculture)

Impact on agro-ecology

Rampant and short-sighted use of new varieties of crops will be used for higher yields with no consideration on the impact on existing variety and the agro-ecology

Destruction of bio-diversity of agricultural/horticultural crops

Marginalisation of millets and other local crops

High demand for use of inputs (viz. water) – question on sustainability will be totally ignored

Denial of resources like water and electricity to all but those conforming and supporting contract farming

Non-conformation of agricultural production to agro-climatic zones

This will lead to rapid decline to situation of diminishing returns and serious damage to the environment

Political Realignments

Working class in India will swell in size due to the conversion of peasants to workers (wage labourers)

Due to lack of leadership of the working class, the global industries and financial institutions will have the capacity to extract 145% more surplus unhindered (the number is arrived at by assuming all economically active persons will participate in manufacturing, agriculture, trade etc. (as of 2001).

Appendix

2001 census – in Millions

Pop: 1029, Rural 743, Agri. Pop 545, Agri. Worker 234 (Cultv 127, Labourers 107)

Eco. Active Pop 451 (total), involved in agri. 267 (20% of the world)

Indian Economy – breakup by categories

Rs. In thousand Crore: 2000-1 / 2002-3

Agri. 424 / 456, Forest. 22 / 27, Fisheries 23 / 27

Mining 45 / 62, Manufacturing 302 / 351, Electricity/gas 43 / 48

Trade 252 / 299, Construction 116 / 138, Hotels/Rest. 19 / 23

Railway 16 / 22, Other Transport 94 / 115, Communication 29 / 35

Banking/Finance 118 / 158, Real Estate 120 / 152

Pub. Admin & Defence 124 / 145

Other Services 153 / 190

GDP 1903 / 2249

Agri %GDP 22.3 / 20.3

NDP 1705 / 2014

FE -17 / -19

NNP 1688 / 1995

Per Capita Income Rs. 16,563 / 18,912

India – Area under categories – in Million ha

Geographical Area 328.73

Reporting Area 306.01

Forest 68.97 (22.5%) % of Reporting Area

Non-agri 23.27

Barren/Uncult. Land 19.13 (6.2%)

Perm Past./Graz. 11.04 (3.6%)

Misc. Trees 3.64

Cult. Wasteland 13.80 (4.5%)

Perm. Fallow 10.06 (3.3%)

Curr. Fallow 14.99 (4.9%)

Net Area Sown 141.10 (46.1%), Gross Area Sown 190.32 (CI = 134.9)

Net Irrig. Area 56.76 (40.2%), Gross Irri. Area 77.99 (41.0%) (% Sown area)

{Net Sown area can rise to 179.95 (58.8%) with 11.04 grazing land (3.6%) – a total of 190.00 million ha (62.4%) put to various agricultural use.)

Average Land holding pattern

National 1.41 ha (1995-6) [1.57 ha (1990-1)]

UP 0.86, WB 0.85, Bihar 0.75, Punjab 3.79, Haryana 2.13, Gujarat 2.62, Karnataka 1.95, Maharashtra 1.87, Orissa 1.30, TN 0.91, AP 1.36, MP 2.28, Assam 1.17, Raj 3.96

Possible Future Scenario

Agriculture Rs. 456 thousand Crore

Can be raised to Rs. 582 thousand Crore (increase in area under production) (28% increase)

Can be further raised to Rs. 872 thousand Crore (50% increase in productivity) as of now compared to joint Rs. 1333 thousand Crore in all other sectors including banking/financing (ex electricity)

Economically Active Population (2001) 451 M (total)

Involved in Agriculture 267 M

Other 184 M

Possible increase in extraction of Surplus 145%

Number of individual owners 127 M (apprx) to be brought under Contract/Corporate Farming

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