Quote:
Originally Posted by V.Narayan For its time the Maruti 800 was a hot car in terms of power to weight ratio, speed, acceleration and sheer reliability. For those of us who grew up on the old trio of Ambassador, Premier & Standard Herald the reliability of the Maruti 800 and the mind blowing service methods at their ASS were a revelation of the world outside the walls of our license raj economy. It was common in the first couple of years for Ambassadors and Premier Padmini's to rear end the Maruti 800 at traffic lights because its brakes, in comparison, were so effective. Also its accelerator had a light touch and its gears shifted ever so smoothly. When I used to drive my father's Maruti 800 (1985) I had to consciously remind myself to be light on the right foot. You can't even imagine the difference between the steering column gear handle of the Ambassador versus a Maruti 800's floor shift. |
Except sir, all other auto makers were throttled by the govt will Maruti was given exceptional and downright illegal (per the laws then) leeway.
This is how Maruti was birthed, you decide for yourself how many violations were allowed it.
All starts with Sanjay Gandhi returning home from a 3 year internship stint at Rolls Royce in the UK. He comes up with the idea of India's own Volkswagen, a people's car.
Now, the small hitch is, Indira had pretty much nationalised everything, and the few private companies left, like Hindustan automobiles or Premier automobiles or even Bajaj of the Chetak fame had stringent licensing norms, and buying even a Chetak meant at least a year in queue after paying the money...if you were lucky. No matter, what Sanjay wants, he gets.
Mind you, these companies had to even get their designs approved by state run bodies. The tarriff commission decided the quotas which they used. International tie ups were frowned upon, and are a regulatory level, killed in proposal stage itself.
Taxes were super high, like the road tax in 1975 alone was around half the average annual income of an average citizen and that's just the road tax.
All this was violated to help Sanjay set up Maruti.
In 1971, with ZERO experience in this field, no degree, no nothing, the GoI awarded a contract to this unknown entity to produce 50k cars (when even as late as 1991, India had a total car sales of some 100,000, in the 70's, this was around 30k units per year). No tender, no competition...nothing! Cronyism max...and it is just the start.
The moment this was done, everybody had to fall head over heels to satisfy Sanjay. So, the Congress CM of Haryana promptly offered all the land the Prince wanted. But it was in a sad place in Haryana...our Prince had his eyes set on prime farm land and land belonging to the ordinance factory....Land Acquisition bill you say? Naw, rules didn't apply to the son of the empress of India. Land was acquired at dirt cheap prices, the army made to give up its land and the factory was put up.
Now, they offered a prototype for testing...it failed all the tests, but no matter, safety mafety. The contract was upheld!
Bad? It gets worse.
Industrialists were literally extorted into buying shares of this company...if you didn't, you had family members thrown into jail till you paid up. Listing rules for the share market were outright broken to allow special provisions to this company. MMS was the RBI chief then and as always turned a blind eye to all of this.
If you had applied to be a dealer, you were out of luck as you were threatened to buy shares (literally using goons and threat of violence) in the company...or else. Even if you were not applying to be a dealer, you were doomed.
Some random guy, applying with the Harayana Govt to buy some land was told that he had to buy shares in the company, or kiss his licenses good bye...he got the shares!
Businessmen who complained, including to the then Minister of state for finance, our Hon exPresident Mr Mukherjee (who did nothing) were then arrested under various acts, including the infamous MISA. Yes, if you protested, you saw jail time.
Cement, Iron and Steel procured to build the complex (strict quotas were in place for anybody without the Gandhi surname) were then promptly resold in the market for a profit, and more quotas kept getting alloted to this company.
This is just the tip of the iceberg. Many share holders listed never existed, huge monies were laundered through this sham of a company, many of Sanjay Gandhi's official documentation and requests were never dated or signed. Minutes of shareholder meets either were manipulated or didn't exist at all.
After the Janata Gov took power, they rightfully scrapped this company, established a commission, whose report has been buried by a compliant media (though it's freely available now)
Yes it was a revolution, but then it was an artificial revolution that was rooted in a giant massive uber scam.