If the government’s order requiring mandatory cost records and audits for hospitals, educational institutions and real estate firms is followed in letter and spirit, it could go a long way in curbing inflation.
Corruption and profiteering in sectors like health care and education are rampant and the government’s record in checking this is not something it can be proud of. There is no action even in cases where they have given away what belongs to the people.
For instance, in Mumbai, where land is scarce and expensive, it is given cheap to five-star hospitals with the provison that they will keep a certain number of beds for the poor. This is rarely followed but one is yet to hear of any action against such hospitals.
This cost records and audit requirement in the new Companies Act will bring transparency in prices in areas where there is direct interface with the people. The public will know whether the prices charged are reasonable.
While the intention of the government is laudable, the implementation of this must be followed strictly. There should be no dilly-dallying in taking action against offenders. As expected, there is a chorus of protest from some quarters complaining that this move will kill competition and affect the privacy of companies.
Others are upset that some sectors, like automobiles, have been removed from the purview of audit requirement. But these can be ironed out if there is merit in the grouse.
