This is a very important and essential feature of the federal structure of our Constitution. The Janata Government, particularly, has declared to the wide world that they would like to go along strictly on Constitutional lines and would like to follow democratic methods; not technically but in its essence, that it is a Government by consultation, it is a Government by continuous dialogue etc. If that is so, then the importance of the Rajya Sabha must not be under-estimated. The Rajya Sabha essentially represents all the States. It may be an indirectly elected house, but it is elected on the basis of States’ representation and the views expressed by the Rajya Sabha therefore, are important. If, because you have a large number of Members here you say ‘no’, we reject it then we can also, since we have a large number of members there, choose right occasion and reject your view.

I expected that since this is the view of the Rajya Sabha, we would sit down here and discuss what are the issues involved. This complete disregard for the recommendations of the Rajya Sabha is complete disregard for the view expressed by a very important House of Parliament. This is, really speaking, rejecting the views of the States of the country. We must take into account that this is a most important political aspect. If you want to make everything a party issue, you can do so; I cannot take any objection to it. (Interruption).

Another point I wanted to make was that I have seen this attitude more than once. When we raised the question of compulsory Deposit Scheme in this House, We were told, ‘No, we do not want to consider it, we will certainly fight it out.’ But what happened ultimately? You made a statement afterwards, coming to this House or that House, that you have reconsidered the matter. What were the factors which made you reconsider? The only factor you had to take into account was your position in the Rajya Sabha. It was hypocritical to come here and say that you reconsidered the issue on its merits and come to contrary decision. It would have been more straightforward, if you had you come and told us, “Well, we accept the position.” but that is exactly what is lacking. But yet we are told, ‘We want to give cooperation and want to take cooperation.’ This is not the way to do that. The manner in which this motion has been brought just shows that you do not care for opposite views and that what you think about the issue is that since you have got a majority in the Lok Sabha you can certainly do whatever you think is right. You are entitled to do that : I cannot object to it. It is your right to do so, but let us not forget that we have also this right.

....Coming to the amendment itself, he tried to give cogent arguments, which have been repeated for centuries together about the capital gains tax. At least you, Prof. Dandavate, as a socialist, know what exactly is capital gains tax. There are many social factors which go into making the capital gains. Capital gain is not necessarily the result of any efficiency. In most of the cases there is a social factor which creates capital gains. For example, if there is a piece of land and some municipality or Development Corporation makes an investment of crores of rupees and the value of the land goes on increasing, there will be capital gains. In inflationary times when prices are increasing, certainly without making any effort, if you possess, or own a thing, after a few years its value goes up. This is unearned income, Prof. Dandavate.