On 4 June 1959, shortly after the Nagpur session of the Indian National Congress, C. Rajagopalachari, along with Murari Vaidya of the newly established Forum of Free Enterprise (FFE)Erdman, p 66 and Minoo Masani, a classical liberal and critic of socialist Nehru, announced the formation of the new Swatantra Party at a meeting in Madras.Erdman, p 65 Conceived by disgruntled heads of former princely states such as the Raja of Ramgarh, the Maharaja of Kalahandi and the Maharajadhiraja of Darbhanga, the party was conservative in character.Erdman, p  74Erdman, p. 72 Later, N. G. Ranga, K. M. Munshi, Field Marshal K. M. Cariappa and the Maharaja of Patiala joined the effort. Rajagopalachari, Masani and Ranga also tried but failed to involve Jayaprakash Narayan in the initiative.Erdman, p 78 In his short essay "Our Democracy", Rajagopalachari argued the necessity for a right-wing alternative to the Congress by saying: since ... the Congress Party has swung to the Left, what is wanted is not an ultra or outer-Left [viz. the CPI or the Praja Socialist Party, PSP], but a strong and articulate Right. Rajagopalachari also insisted that the opposition must:  operate not privately and behind the closed doors of the party meeting, but openly and periodically through the electorate.  He outlined the goals of the Swatantra Party through twenty one "fundamental principles" in the foundation document.Erdman, p  188 The party stood for equality and opposed government control over the private sector.Erdman, p 189Erdman, p 190 Rajagopalachari sharply criticised the bureaucracy and coined the term "licence-permit Raj" to describe Nehru's elaborate system of permissions and licences required for an individual to set up a private enterprise. Rajagopalachari's personality became a rallying point for the party. Rajagopalachari's efforts to build an anti-Congress front led to a patch up with his former adversary C. N. Annadurai of the Dravida Munnetra Kazhagam. During the late 1950s and early 1960s, Annadurai grew close to Rajagopalachari and sought an alliance with the Swatantra Party for the 1962 Madras legislative assembly elections. Although there were occasional electoral pacts between the Swatantra Party and the Dravida Munnetra Kazhagam (DMK), Rajagopalachari remained non-committal on a formal tie-up with the DMK due to its existing alliance with Communists whom he dreaded. The Swatantra Party contested 94 seats in the Madras state assembly elections and won six as well as won 18 parliamentary seats in the 1962 Lok Sabha elections.
On 4 June 1959, shortly after the Nagpur session of the Indian National Congress, C. Rajagopalachari, along with Murari Vaidya of the newly established Forum of Free Enterprise (FFE)Erdman, p 66 and Minoo Masani, a classical liberal and critic of socialist Nehru, announced the formation of the new Swatantra Party at a meeting in Madras.Erdman, p 65 Conceived by disgruntled heads of former princely states such as the Raja of Ramgarh, the Maharaja of Kalahandi and the Maharajadhiraja of Darbhanga, the party was conservative in character.Erdman, p . 74Erdman, p. 72 Later, N. G. Ranga, K. M. Munshi, Field Marshal K. M. Cariappa and the Maharaja of Patiala joined the effort. Rajagopalachari, Masani and Ranga also tried but failed to involve Jayaprakash Narayan in the initiative.Erdman, p 78 In his short essay "Our Democracy", Rajagopalachari argued the necessity of a right-wing alternative to the Congress : " since ... the Congress Party has swung to the Left, what is wanted is not an ultra or outer-Left [viz. the CPI or the Praja Socialist Party, PSP], but a strong and articulate Right. " Rajagopalachari also said the opposition must: " operate not privately and behind the closed doors of the party meeting, but openly and periodically through the electorate. " He outlined the goals of the Swatantra Party through twenty-one "fundamental principles" in the foundation document.Erdman, p . 188 The party stood for equality and opposed government control over the private sector.Erdman, p 189Erdman, p 190 Rajagopalachari sharply criticised the bureaucracy and coined the term "licence-permit Raj" to describe Nehru's elaborate system of permissions and licences required for an individual to set up a private enterprise. Rajagopalachari's personality became a rallying point for the party. Rajagopalachari's efforts to build an anti-Congress front led to a patch-up with his former adversary C. N. Annadurai of the Dravida Munnetra Kazhagam. During the late 1950s and early 1960s, Annadurai grew close to Rajagopalachari and sought an alliance with the Swatantra Party for the 1962 Madras legislative assembly elections. Although there were occasional electoral pacts between the Swatantra Party and the Dravida Munnetra Kazhagam (DMK), Rajagopalachari remained non-committal on a formal tie-up with the DMK due to its existing alliance with Communists whom he dreaded. The Swatantra Party contested 94 seats in the Madras state assembly elections and won six as well as won 18 parliamentary seats in the 1962 Lok Sabha elections.
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