Case Study 11

Suresh Kumar has been recently appointed as the District Collector of a rural region in Western India. While going through the files passed by his predecessor, he found huge irregularities in one case pertaining to the construction of a factory manufacturing herbal medicines. The land was given to the factory owner at a very cheap rate. Above that, the building plan was cleared in much haste without following proper rules and regulations.

While further enquiring into the case, Suresh came to know that the factory owner has also illegally occupied agricultural land near the factory and has also not paid annual dues to the government. All this is possible because of rampant corruption and links of factory owners with the officials and politicians.

As per law, strict action is required but Suresh is confused as the factory is providing jobs to many local people and herbal medicines produced by it are cheap and useful for the poor. The medicines also have great international demand. 

Discuss the ethical issues involved in the situation. Following are some suggested options that Suresh can take. Please evaluate the merits and demerits of each of the options:

  1. Do not do anything as the file was signed by the predecessor.
  2. Suspend the license of the factory and stop the production until all dues are not cleared.
  3. Prepare a detailed report and pass it to the seniors and then do what they order.
  4. Put a hefty fine on the factory owner and make him pay it within a stipulated time. 

Also please indicate (without necessarily restricting to the above options) what you would like to do, giving proper reasons.

Answer:

The case involved an ethical dilemma where punishing the lawbreaker will inadvertently cause harm to innocents in terms of employment, availability of cheap drugs etc. The following are other ethical issues:

  1. Corruption in administration.
  2. Crony capitalism
  3. Injustice to poor farmers whose land has been forcefully grabbed.
  4. Injustice to the poor who get the benefit of cheap medicine.
  5. Moral courage and fortitude of District Collector.
  1. not do anything as the file was signed by the predecessor.

Merit

  1. The factory will continue to supply cheap medicines to the poor.
  2. Export to foreign nations will continue and it may give soft power to our nation.

Demerit-

  1. Will create the wrong precedence
  2. Companies will be encouraged to break more laws.

2. Suspend the license of the factory and stop production until all dues are not cleared.

Merit

  1. The rule of law will be upheld.
  2. Justice to farmers whose land has been grabbed.

Demerit

  1. Temporary suspension of supply of cheap medicines.
  2. The image of India and Indian pharmaceutical companies will get hurt.
  3. Loss of workdays to the employees of the factory. 

3. Prepare a detailed report and pass it to the seniors and then do what they order.

Merit

  1. The wisdom of senior officers will be utilized.
  2. Comprehensive action may be taken for all such cases.
  3. Since the preceding officer is also involved in the case, action against him can be taken only if seniors are looped in.

Demerit

  1. The case may take more time to resolve.
  2. The company may pressurize senior officers to transfer the DM and then no action will be taken.

4. Put a hefty fine on the factory owner and make him pay it within a stipulated time. 

Merit

  1. The burden will come directly on the one who has done the crime.
  2. Punishment and deterrence for not following the law.

Demerit

  1. The company may become financially unviable and ultimately get closed.

My task is to book the corrupt owner of the factory under the law without hampering the life of the innocent. I will ask the owner to pay all due taxes and fines. He must also return the land grabbed or pay mutually agreed compensation. If this is not done, then evacuation or closing of the factory can be taken. I will also use persuasion techniques to make him comply.