Delhi Chief Minister Arvind Kejriwal may have reversed the previous government's decision to allow foreign direct investment (FDI) in multi-brand retail, but the Congress is not giving up that easily.
Expressing surprise at the "arbitrary" decision of the AAP government to disallow FDI in multi-brand retailing, the Congress party plans to take up the issue in the state assembly.
Delhi Pradesh Congress Committee (DPCC) chief Arvinder Singh Lovely said that Kejriwal's move had no legal basis. "I don't think there is legal backing for what (Delhi) government has done. We will call for a discussion on the matter in the Delhi assembly," Lovely told reporters.
Not only Wal-Mart, but all foreign investors are in wait-and-watch mode. The rise of AAP and its ability to damage the BJP will be more worrisome to investors than just the bar on Wal-Mart.
So, is the Congress planning to withdraw support on the FDI issue? The Congress did not quite make that clear. However, Lovely told reporters, "It is not the question of withdrawing support. But one thing is sure -- that we will go and see the details and legality of the letter (written to the Commerce Ministry)."
The DPCC chief told The Times of India that they will support AAP as long as they fulfill their promises. "..As long as they will try to fulfill their promises in the right spirit, we will support them. We want to give them ample time to fulfill their promises. They want to run away from the government, we will not let them run away," ToI quoted Lovely as saying.
However, the Congress will have to take a stand the retail FDI issue raised by the AAP as it is gearing up for Lok Sabha polls. Moreover, loss of jobs is one of the biggest argument being raised against FDI in multi-brand retail.
In a major policy reversal, the Aam Aadmi Party (AAP) government wrote to the Centre to withdraw the approval given by the previous Sheila Dikshit government for FDI in multi-brand retailing in Delhi, saying the entry of global chains such as Wal-Mart and Tesco in India would cause large-scale job losses.
Commerce Minister Sharma had earlier described the Delhi government's move as "abrupt, irresponsible and ill-considered," saying India is not a banana republic where policy decisions can be reversed.
So, what are the Centre's options now?
Constitution expert Subhash Kashyap told Business Standard Delhi was between a state and a centrally administered entity. "So, if there's a conflict between the Union government and the Delhi government, even if the matter pertains to the state list, Union law will prevail," he said.
"If the Centre chooses to exert itself against the Delhi government stand, the Arvind Kejriwal-led AAP will have no say," Diljeet Titus, founding partner of Titus & Co, a law firm handling many foreign retail brands' entry into the country, told the BS.
However, despite the legalities, the Centre is likely to take a political decision on the FDI issue in Delhi.
No comments:
Post a Comment