{"id":158407,"date":"2022-01-04T20:31:13","date_gmt":"2022-01-04T15:01:13","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=158407"},"modified":"2022-01-04T20:31:13","modified_gmt":"2022-01-04T15:01:13","slug":"the-road-to-regulatory-capture-isnt-paved-with-good-intentions","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-road-to-regulatory-capture-isnt-paved-with-good-intentions\/","title":{"rendered":"The road to regulatory capture isn\u2019t paved with good intentions"},"content":{"rendered":"\n

News:\u00a0<\/span><\/b>Regulatory Capture is affecting Indian Economy.\u00a0<\/span>\u00a0<\/span><\/p>\n

Regulatory capture<\/span><\/b>\u00a0is common in all industry segments that have a\u00a0<\/span>sectoral regulator<\/span><\/b>. It is a situation, when act in favor of companies or special\u00a0interest groups of the sector, instead of protecting and promoting the public interest.\u00a0<\/span>\u00a0<\/span><\/p>\n

One example\u00a0from\u00a0US<\/span><\/b>\u00a0defines\u00a0regulatory capture\u00a0perfectly.\u00a0An<\/span>\u00a0addictive\u00a0medicine\u00a0OxyContin<\/span><\/b>\u00a0was labelled by regulator Food and Drug Administration (FDA) as a non- addictive medicine, on the lobbying of drug maker Purdue Pharma.<\/span>\u00a0<\/span><\/p>\n

What are the examples of regulatory capture in India?<\/span><\/b>\u00a0<\/span><\/p>\n

First,<\/span><\/b>\u00a0the case of Yes Bank\u2019s repeated attempts to recover its money from defaulter Dish TV.\u00a0\u00a0In this case,\u00a0<\/span>Debt Recovery Tribunal (DRT)<\/span><\/b>\u00a0ruling frozen the Yes Bank\u2019s voting rights\u00a0in Dish TV. The Delhi High Court in this case observed that the DRT\u2019s orders exhibited complete lack of judicial discipline.\u00a0Not only that, but a state\u2019s police also attempted to freeze Yes Bank\u2019s voting rights in this case.\u00a0<\/span>\u00a0<\/span><\/p>\n

Second,\u00a0<\/span><\/b>on many occasions, SC has criticized\u00a0<\/span>National Company Law Tribunal (NCLT)\u00a0<\/span><\/b>for its rulings.\u00a0On 13 September 2021, SC expressed its concern over the NCLT\u2019s long delays in resolving insolvency cases under the Insolvency and Bankruptcy Code (IBC).\u00a0A\u00a0parliamentary panel report showed that over 70% of IBC cases were pending for more than 180 days.\u00a0<\/span>\u00a0<\/span><\/p>\n

Third,<\/span><\/b>\u00a0the\u00a0<\/span>Director General of Civil Aviation\u00a0<\/span><\/b>is the part of the civil aviation ministry. Its majority of duties, written on the\u00a0civil aviation ministry\u2019s website are mostly linked to\u00a0airlines and aircraft. Thus, it\u00a0tends\u00a0to rank airline viability and profitability over the protection of passenger rights.\u00a0<\/span>\u00a0<\/span><\/p>\n

Fourth<\/span><\/b>, the trend of regulatory capture in India is not\u00a0practiced just by\u00a0industries, but\u00a0also by\u00a0governments.\u00a0It is done by either influencing the existing regulators or creating new ones.\u00a0<\/span>For example,<\/span><\/b>\u00a0proposed\u00a0<\/span>Digital Protection Authority,<\/span><\/b>\u00a0which will not only exempt the state from most data privacy norms, but would also wield the power to select the chairperson and other board members.<\/span>\u00a0<\/span><\/p>\n

Source:<\/span><\/b>\u00a0This\u00a0post is created\u00a0based on\u00a0the\u00a0article\u00a0<\/span>\u201dThe\u00a0road to regulatory capture isn\u2019t paved with good intentions\u201d<\/span><\/b>, published in\u00a0<\/span>Live Mint<\/span><\/b>\u00a0on\u00a0<\/span>4<\/span><\/b>th<\/span><\/b>\u00a0January<\/span><\/b>.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News:\u00a0Regulatory Capture is affecting Indian Economy.\u00a0\u00a0 Regulatory capture\u00a0is common in all industry segments that have a\u00a0sectoral regulator. It is a situation, when act in favor of companies or special\u00a0interest groups of the sector, instead of protecting and promoting the public interest.\u00a0\u00a0 One example\u00a0from\u00a0US\u00a0defines\u00a0regulatory capture\u00a0perfectly.\u00a0An\u00a0addictive\u00a0medicine\u00a0OxyContin\u00a0was labelled by regulator Food and Drug Administration (FDA) as a non-… Continue reading The road to regulatory capture isn\u2019t paved with good intentions<\/span><\/a><\/p>\n","protected":false},"author":10323,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[212,10501],"class_list":["post-158407","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-gs-paper-2","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704757946},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/158407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10323"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=158407"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/158407\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=158407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=158407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=158407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}