Pressure Groups versus Lobbying

Lobbying is a communication process used by members of a pressure group for persuasion. Lobbying is used to influence governmental policy process. It also acts as an instrument that links citizens and decision-makers. Lobbying takes place when a few members of pressure groups loiter in the corridors of power with a view to securing an opportunity to interact with legislators and to influence the decisions of the policy makers.

Lobbying is as old as legislation and pressure groups are as old as politics. The proponents of lobbying say that it is an `iterative’ process and lobbyists function as a bridge between companies and the government.

Differences between Pressure Groups and Lobbying

Pressure groups are organizations, lobbying itself is not organization but an activity. Pressure groups perform various activities including lobbying.

Lobbying is a part of the democratic process. The human rights activist who meets legislators and Ministers to press for ratification of an international convention is also a lobbyist. Not all such lobbyists are unpaid. Non-governmental organisations (NGOs) remunerate them sometimes.

Framework around Lobbying in India

Lobbying became a buzzword after the 2010 Niira Radia episode and Walmart’s regulatory disclosure to United States authorities of having engaged in lobbying activities to secure enhanced access to Indian markets.

Current Framework

At present, there is no law in India to regulate the activities of lobbyists however, it is not illegal either.

Despite this, Lobbying is a well-established industry in India though it operates in a largely opaque environment. Industry bodies such as Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), National Association of Software and Services Companies are among the top lobby groups in India. Although each of them has denied and said that they help the government in building the policy framework. There have been demands from the lobbying industry and also outsiders to spell out clear laws determining dos and don’ts for the practitioners, but it hasn’t happened so far.

Disclosure of Lobbying Activities Bill, 2013 (DLA Bill)

This bill was introduced in UPA-II regime to bring transparency in lobbying activity and provide them a legal framework. At present, this bill is lying in dustbin. Key features of this bill are as follows:

• The statement of objectives of this bill says that Lobbying provides an opportunity for individuals and organisations to voice their views on government decisions that affect them and hence, forms an integral part of democratic functioning.
• It recognizes lobbying as integral part of democratic functioning.
• It proposes setting up of a Lobbyists Registration Authority (LRA). Every entity (including individuals, companies and all entities of any form whatsoever) that intends to engage in lobbying activity are required to register itself with the LRA. No need to bring disclosure in retrospective matters related to lobbying.
• It defines lobbying activity as any communication (oral, written or electronic) with a public servant and payment to a public servant done or made with the aim of influencing a legislative action (such as the introduction, passing or defeat of a central or state bill or any amendment thereto), an executive action (such as a government policy or programme, awarding a licence, contract, grant, permit or funds to any individual or organisation, executive decisions to transfer an asset or business manufacturing public goods to a private individual), or the nomination or promotion of any person for a position in a public office.
• The definition does not clearly differentiate between legitimate lobbying and bribery in context with the payments made.
• The DLA bill excludes from its purview certain types of communications with public servants on the principle that they are either, by their very nature, in the public domain (such as communications made in public media) or are in fulfilment of a legal obligation (such as testimony given before a government constituted committee), or are in response to a request by the government for (a) a tender or (b) public views on proposed laws and policies.
• The bill has envisaged extensive disclosure requirements. It requires an independent lobbyist to disclose the names of clients and persons who have a direct interest in the outcome of the lobbying activity or have otherwise funded or controlled the lobbying activity. All lobbyists are also obligated to disclose the area or subject matter of the lobbying activity, the names of employees who will lobby with public servants, the particulars of the public servants who will be lobbied with, the purpose and outcome of lobbying and the details of payments made by the lobbyist to a public servant.
• A public servant is also required under the DLA Bill to disclose information regarding payments received by him/her in the course of any lobbying activity conducted with him/ her.

The DLA Bill criminalises failure by a person intending to engage in lobbying activity to register itself with the LRA, and imposes a penalty of up to Rs 50 lakh. Failure to submit accurate information when asked to do so by the LRA attracts suspension of registration as a lobbyist and is punishable with imprisonment up to five years or a fine which may extend to Rs 75 lakh, or both.