8th Dr. HGV Reddy Memorial Lecture - Dr. K. P. Krishnan on “Regulation, Federalism, and Institutional Accountability”
Dr. K. P. Krishnan delivered an insightful lecture titled “Regulation, Federalism, and Institutional Accountability”, addressing key challenges and opportunities in governance. The lecture explored the interplay between regulation, federal structures, and the imperative of institutional accountability, offering a comprehensive analysis of their implications for India's governance framework.
Referring to the Evolution of Regulation in India, Dr. Krishnan highlighted the growing role of regulation as a governance tool, particularly since the liberalisation in the 1990s. He noted the shift from centralised control to specialised control evident in the emergence of Statutory Regulatory Authorities (SRAs) like SEBI and FSSAI.
Dr. Krishnan pointed out that while these agencies have enhanced governance in sectors such as financial markets and telecommunications by addressing market failures like information asymmetry and monopolies, there are emerging concerns over the “democratic deficit” within these agencies, as they often operate with significant autonomy but limited oversight. In particular, he pointed to the pushback by RBI for Parliamentary oversight in the guise of preserving autonomy.
The event was attended by the family and friends of Dr. HGV Reddy, and staff from Takshashila.
On the issue of Federalism and Democratic Challenges, Dr. Krishnan critically examined India's federal structure, highlighting the trends towards increasing centralisation.The key concerns that he underlined included Diminished State Representation - The Rajya Sabha's intended role in protecting state interests has weakened; Union Overreach - The central government has encroached on state domains, including education and health, often through centrally-sponsored schemes and Financial Disparities - The Union's dominance in revenue collection, coupled with the use of cesses and surcharges, has exacerbated fiscal imbalances, leaving states with inadequate resources.
Finally, on institutional accountability, Dr. Krishnan stressed the need for a balanced regulatory framework that ensures both autonomy and accountability. He outlined critical shortcomings in India's regulatory governance, including excessive autonomy for some agencies, insufficient independence for others, and a lack of overarching legislative frameworks to standardise practices. He also alluded to the unique regulatory challenges posed by social media, including misinformation, monopolistic behaviour, and its influence on political processes. Dr. Krishnan emphasised the need for innovative approaches to regulate this evolving sector. Dr. Krishnan also proposed four actionable solutions to strengthen governance. He called for establishing formal parliamentary oversight mechanisms for regulatory agencies. Second, he argued for developing a uniform regulatory governance framework for consistency and transparency. Third, he suggested revisiting the division of powers and fiscal arrangements between the Union and States to enhance federal balance. Lastly, he recommended empowering local governments with greater fiscal and administrative autonomy.
About Dr. HGV Reddy
Dr. HGV Reddy was a passionate bureaucrat and a man of many accomplishments. He headed multiple prominent public institutions, such as the Bangalore Development Authority (BDA), Bhadravati Iron and Steel, NGEF, MSIL, the Coffee Board, and the Handloom Corporation, among many others. For his immense contribution towards enhancing coffee cultivation in the Araku valley region, Andhra University awarded him with an honorary doctorate in 1975. His drive to serve the country led him to give up a career as a lecturer of zoology at Bangalore University, and he turned his attention towards public service. He served as the Trade Commissioner for Mysore State and was given the rank of Minister of State by then Chief Minister Mr. Ramakrishna Hegde.
Apart from his multiple professional achievements, he was deeply involved in the development of Bangalore as we know it today. He was the founder-secretary of Bangalore International Centre, president of Bangalore Club, as well as the captain of Bangalore Golf Club. He was active in many social and charitable organisations, such as the Swami Vivekananda Trust in Hoodi Grama.
Every year, his children, Vani Reddy, Latha Reddy, and Vijay Chandru, organise a memorial lecture on his birth anniversary in his remembrance.
