Lawyers criticise govt's FDI and SEZ policies

Lucknow, Dec 22 (UNI) The Supreme Court and Lucknow Bench of the Allahabad High Court lawyers today criticised the government policies of allowing the Foreign Direct Investment (FDI) in retail and Special Economic Zone (SEZ) as against the public welfare. They cautioned that in the haste of setting up SEZ's and allowing super giants like Wal-mart in the country, the government has overlooked the need of having rules and regulations to ensure the welfare of small traders as against public welfare.

Supreme Court advocate Sonia Raj Sood here said that ''we want the government to ascertain how much of investment Wal-Mart and other multinationals will get in the country, whether they will buy goods from India, how much of the investment will be used to improve the standard of products and how many jobs will be provided.'' Ms Sood pointed out that FDI in retail will affect 98 per cent of the retail trade in India and wipe out 15 million retailers.

She added ''it is incomprehensible how Prime Minister Dr Manmohan Singh reversed his stance of 15 years in a single meeting with Wal-Mart and allowed 51 per cent equity in the retail sector.'' Ms Sood pointed out ''FDI in retail would affect the Indian manufacturers, who would not be able to compete with his foreign counterpart from whom Wal-Mart would source from. Besides, suppliers to Wal-mart have been worst hit as per the company's policies in other countries. Opposition to Wal-mart has been maximum in US where thousands of traders have had to close their shops.'' Labour laws will not be applicable in SEZ areas. Only 35 per cent economic activity is allowed in these deemed foreign territories, whereas 65 per cent is for building activity, she added.

She maintained in fact, the SEZ Act was basicaly framed to facilitate the entry of FDI's in the country and the act should be challenged for the same was unconstitutional.

I am spearheading a nationwide movement of lawyers so that various petitions challenging the SEZ act and FDI in retail are filed in various courts. The latter will squeeze the domestic farmers and SEZ will ensure the capture of their lands.

UNI ATI AD RAI1958