Article: As per new data gathered by the Association for Democratic Reforms (ADR), the total worth of assets of many MLAs have grown unbelievably faster, and that too way faster than that of MPs.
Statistics:
The total wealth of a Member of Parliament from Bangalore Central, C Mohan grew rapidly from Rs. 5 crore in 2009 to Rs. 47 crore in 2014, which is a growth of 786 per cent. There are many other MPs also who have seen their assets grow exponentially in the time span between two Lok Sabha elections.
ADR reports that many of these MPs have witnessed the net worth of their wealth grow to the tune of more than 200 per cent.
However, that is not the only surprise that the ADR analysis has thrown light on. It has also highlighted the fact that members of legislative assemblies hold far more wealth, which in the past five years has grown far more quickly.
Going by the facts, a total of 168 members got re-elected to the Lok Sabha this year, the value of assets of 165 of them stands at an average of Rs. 12.78 crore, which is 137 per cent more than what they had in the 2009 Lok Sabha elections.
By contrast, the assets of MLAs, who got re-elected in Madhya Pradesh on an average saw a whopping rise of 290 per cent, in Maharashtra it rose up to 157 per cent, in Haryana it reached 245 per cent and in Chhattisgarh it was 147 per cent. The elections taken into consideration here have taken place in the past 10 months.
The per capita gross domestic product of India at nominal prices saw a growth of 60.8 per cent in the period from 2009-10 to 2013-14.
The rationale behind the rise:
Jawaharlal Nehru University’s Manindra Nath Thakur explained, “When it comes to economic matters, state governments have a far bigger role to play. Whether it is acquiring land for a major project or issuing a licence to a private university, the role of the state government has become very important. MLAs are bound to be natural beneficiaries of this heightened economic activity.”
The assets held by re-elected MLAs in Maharashtra and Haryana are comparable with the average assets of re-elected MPs. Speaking of surge in net worth of assets of Chhattisgarh and Madhya Pradesh MLAs, the two states have some serious review to do as the swift rise in these states could be because of a low base. Maharashtra and Haryana report a higher per capita GDP than that of Madhya Pradesh and Chhattisgarh.
Yet, over 70 per cent MLAs in Chhattisgarh and Madhya Pradesh have possessions of more than Rs 1 crore. An average MLA’s net worth in Madhya Pradesh is Rs 5.24 crore and in Chhattisgarh it is Rs 8.8 crore.
The average assets of Chhattisgarh MLAs was around Rs 1.45 crore in 2008.
Yatindra Singh Sisodia from Ujjain-based Madhya Pradesh Institute of Social Science Research says, “Many politicians are directly or indirectly involved in the real estate business. With appreciation in property prices, the assets of MLAs would have increased.”
However, a different reasoning is given by the former director of the Centre for the Study of Developing Societies, V B Singh, who says that the gap between the worth of assets and its growth for MLAs and MPs, can also be attributed to under-reporting.
He said, “It is hard for MLAs to hide details of their assets because of the localised nature of their politics. Their declarations are closer to reality. MPs do not face such intense scrutiny at the local level.”
Voter prefers richer candidate over poorer one:
The rise in financial holdings of lawmakers is also because of the rising preference of voters for rich candidates.
Taking the example of 2014 Lok Sabha elections, 1 in 5 candidates having assets amounting to more than Rs 1 crore won as compared to 1 in 50 for those worth less than Rs 1 crore. Also, the possibility of wealthier candidates entering Parliament is 10 times more than that of others.
Preference for rich candidates is catching up in poor states. In the November 2013 Assembly elections, the chances of winning for candidates worth at least Rs 1 crore in Madhya Pradesh and Chhattisgarh stood at 46 per cent and 42 per cent, respectively.
Also read: India Ranks 142 among 182 countries in ‘Ease of Doing Business’ Report by World Bank
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About Tushita
Tushita is a political writer at thenational.net. Her deep rooted interest in politics, passion for writing and craze for travelling define her. Writing since her school days, she aspires to write lifelong and make the world a happier place to live with the power of her pen.
