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.
The Andhra Pradesh government issued an Ordinance on October 15, 2010, which stipulated conditions for the microfinance activities in the State. This Ordinance was ratified two months later on December 15, 2010 by the lower house of the Andhra Pradesh assembly. The key features of the Bill are: •All MFIs should be registered with the district authority. •No person should be a member of more than one SHG. •All MFIs shall make public the rate of interest charged by them on the loans extended. •There would be a penalty on the use of coercive action by the MFIs. •Any person who contravenes any provision of the Ordinance shall be punishable with imprisonment for a period of 6 months or a fine up to the amount of Rs 10,000, or both. The State assembly accepted most of the features from the earlier Ordinance in the Bill. However, the demand for a cap on the interest rates charged by the MFIs for the loans extended to the SHGs was rejected during the ratification.
