HomeNewsBusinessEconomyFrom the Mundhra Scandal to the license scam, how Question Hour held the government accountable

From the Mundhra Scandal to the license scam, how Question Hour held the government accountable

The first hour of a sitting session of the House proceedings, Question Hour, is devoted to questions that members of parliament raise about any aspect of governance. The concerned Minister is obliged to answer to the Parliament, either orally or in writing, depending on the type of question raised.

September 03, 2020 / 16:32 IST
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Way back in 1958, during Jawaharlal Nehru’s second term as Prime Minister of India, the then MP from UP’s Rae Bareli, and Nehru’s son-in-law, Feroze Gandhi, was instrumental in exposing the Mundhra scandal -- Independent India’s first big financial scam—after he raised a question during Question Hour.

The scam involving the government-controlled Life Insurance Corporation (LIC) was not just an embarrassment to the Nehru government, but eventually led to the resignation of the then Finance Minister TT Krishnamachari.  Also, Haridas Mundhra, the Calcutta (now Kolkata)-based industrialist at the centre of the whole affair, was sentenced to 22 years in prison.

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“It was Question Hour and MPs put questions to the Union Finance Minister. When Ram Subhag Singh questioned him, Feroze Gandhi saw that TTK’s  (Finance Minister TT Krishn­a­machari) legs began to shake,” Bertil Falk, Swedish journalist and biographer of Feroze Gandhi (Feroze - The Forgotten Gandhi) quotes HC Heda, Congress MP from Nizamabad, during a TV interview on September 15, 1993. Feroze had smelled foul play, prompting the question that led to the unearthing of the scandal, Falk wrote.

This episode was one of the first incidents in the past seven decades of India's Parliamentary democracy when through an MP’s question during Question Hour, a ministry was held accountable and action taken.