The delicate balance between public service and private interests in India, and employing leadership from within the bureaucracy is crucial to maintaining the integrity of our institutions. Vinta Nanda writes…

Photography: Vinta Nanda

The appointment of Madhabi Puri Buch as SEBI Chairperson has reignited concerns about the infiltration of private sector executives into key public roles. This article explores the potential risks of prioritizing corporate interests over public welfare and underlines the importance of competent leadership from within India's bureaucracy. Drawing on historical examples like the decline of Doordarshan, the narrative explores why experienced bureaucrats are essential for maintaining checks and balances in India's governance. Discover why public institutions must remain independent to safeguard democracy.

I vividly remember when satellite television first arrived in India, challenging the monopoly of public television, which was owned by the government and managed by our bureaucracy. The sleeping giant that was Doordarshan woke up, launching DD Metro to compete with the flood of new channels offering a variety of programs from around the world. For a time, DD Metro held its ground, co-existing with satellite television in the rapidly expanding metro cities of the early 1990s.

Ratikant Basu, the then Director General of Doordarshan, played a pivotal role in this battle. At that time, Rupert Murdoch's Star Network was in partnership with Zee TV, the only satellite television channel, under an agreement that prevented Star from running Hindi programming. However, towards the end of the decade, Murdoch realized that the asli moolah (real money) from advertisers was tied to Hindi entertainment. Consequently, the partnership with Zee ended, and Star Network launched its first Hindi entertainment channel, Star Plus.

This marked a turning point. R Basu and his entire team from Doordarshan were poached by Murdoch, leading to the decline of Doordarshan. The network, which had delivered some of the best television, India has ever seen, in the 1980s, slowly shut down as Star and Zee dominated the market. The quality of programming on DD1, Doordarshan's flagship channel, deteriorated significantly, a situation that persists to this day.

The Need for Competent Leadership from Within

This story is more than just a nostalgic recollection; it serves to illustrate a broader point. Contrary to the belief that only professionals from outside the bureaucracy can run successful entities in competitive markets, individuals like R Basu—whether from within or outside the system—have proven that it takes driven and competent leaders to navigate challenges.

Our bureaucracy has produced many towering personalities who have maintained checks and balances in the system. These men and women have stood their ground, holding power to account in various instances. India’s bureaucracy still has competent and capable officers, enough to mitigate the corrupt and ensure that the administration steer the roller-coaster, not capitalists. While capitalists are integral to growth, they are not who the system can depend on to act equitably. This is why it is imperative that institutions governing best practices are led by IAS officers.

Corporations vs. Government: Different Goals, Different Rules

Corporations hire talent to generate profits for themselves and their shareholders, whereas governments employ talent to generate prosperity for the country and its citizens—particularly the marginalized and excluded. When a private sector executive like Madhabi Puri Buch is appointed to a key government position, it raises suspicions about the government's intentions and represents a potential injustice to the existing talent within the administration, which often represents underprivileged sections of society.

The Cost of Corporate Influence

I can't help but think about how inappropriate it would be to see a bureaucrat adjusting a minister’s sari  or dress, kurta aur dupatta, during a photo op, or managing crowds around them as we regularly see senior executives doing for celebrities and their bosses on social media. This is what the private sector has reduced multitudes of highly educated talent to.

I recall a party I attended with a huge celebrity, where I introduced an old friend, the CEO of an entertainment studio, to the star. As the CEO moved on to greet others, the star remarked, "Ghanta CEO, ye toh uska naukar hai!" ("What CEO, he is just his servant!"). This comment speaks clearly of the disdain with which some in the private sector are treated, and one can only imagine the indignities faced by those lower down the corporate ladder.

Another boss of mine once summed up the difference between the private and public sectors: "Hain toh Indian. Mercedes mein baith ke, suit, tie aur mehengi ghadi pehen ke, dimaag toh nahin badal sakta. Padhane waale bhi hum, padhne waale bhi hum, corrupt bhi hum, incorruptible bhi hum, private sector mein bhi hum aur public sector mein bhi hum hi hain." ("We are Indian after all. Sitting in a Mercedes, wearing a suit, tie, and expensive watch doesn’t alter the mindset. We are the teachers, we are the students, we are the corrupt, we are the incorruptible, we are in the private sector, and we are in the public sector too.").

The Madhabi Puri Buch Controversy

Madhabi Puri Buch's appointment as SEBI Chairperson has sparked a debate about the wisdom of placing private sector individuals in key government roles. Her background has fuelled suspicions, especially in light of ongoing controversies like the one involving the Adani Group. The Hindenburg report, which accused the group of share price manipulation and accounting fraud, has placed SEBI under intense scrutiny. Can someone with strong ties to the private sector objectively investigate and regulate powerful corporate entities?

The Danger of Private Sector Influence in Public Institutions

The infiltration of private sector individuals into public sector roles is not new, but it is fraught with risks. Private corporations are driven by the pursuit of profit, often at the expense of broader societal interests. When private sector executives transition into public roles, there is an inherent risk that they may prioritize corporate interests over public welfare.

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If the government believes our bureaucracy is unqualified then it has to answer why? The government is accountable to the people for what is lacking with the training that young entrants to the administrative services are getting. It is the government’s responsibility to ensure that the most competent people lead secretariats. While the private sector undoubtedly has a role to play in India's growth, it is crucial that public institutions remain true to their mandate of serving the public good. The future of India's democracy depends on it.