New Delhi, Jan 07: India's much-touted economic
liberalisation has remained unsuccessful in removing
'Inspector Raj' system and is still restricted to central
level, according to a study conducted by industry chamber
According to a study titled 'Eco Pulse', which
interviewed over 300 CEOs and MDs, 90 per cent of the
respondents felt liberalisation was still restricted to
central level and had "neither altered nor abated the menace
of “Inspector Raj".
As many as 40 inspectors and government functionaries
keep on visiting factories premises on the pretext of
inspecting them with ulterior motives to fleece their
promoters and owners and harass them as well, the survey said.
The worst victim of inspectors' fury is small and tiny
sector followed by medium and large industries, with 30 per
cent of the respondents feeling that large firms were spared
as their promoters enjoyed easy access to power and policy
Earlier, the number of visiting inspectors was restricted
to 30 which has now shot up to 40, the study said.