Searing heat and a crisis-ridden economy make Dubai a very unattractive place to spend this summer in. Only the most desperate who find their own territory too hot will go there. And now when Indians are celebrating the triumph of democracy through a free and fair election, there is one Indian who has been denied the comfort of freedom on the flimsiest of charges and driven to the unfriendly weather of the emirate. It is indeed an irony that the man in question is one who proved to the world that there can be a successful home-grown investment bank in India — a service to the nation, if you will.
The Warning and After
AT LOGGER HEADS
(This story appears in the 05 June, 2009 issue of Forbes India. To visit our Archives, click here.)
Kudos for bringing to the fore such a painful reality that businesses in India are facing. Recently there has been a huge furore over China being closed for businesses, after what it did with Google and Rio Tinto. I certainly think Forbes can use its reach in international media to highlight the plight of the Indian businesses and the people who have made it possible in our as-yet-young democracy.<br /> <br /> The government is still controlling too much in India, and it's high time we realize that and take some steps to curtail the draconian laws that still exist. The APPDFE Act is, I'm sure, but one of a motley of such acts still being milked by the opportunist leaders of this nation.<br /> <br /> Another recent instance that comes to mind is the sudden witch-hunt that has ensued around IPL, leading to a summary dismissal of Lalit Modi - a man who has been felicitated worldwide for his innovation in making a profitable business out of a totally new kind of sport, in a supposedly already-saturated market. Why all of sudden IPL has come under shadow this time, when it has done the same things as it has been doing in its earlier editions? Except for the scale of things (meaning primarily more money was involved - which, admittedly is lure enough for our ever-hungry politicos), nothing had changed.<br /> <br /> All in all, the government has no business in meddling in businesses, except where a clear-cut case can be made within the ambit of law, for defending the rights of individual public. And in all such cases, it should be made mandatory why a particular individual is being hunted, and what is expected to be gained by arresting him (Mr. Kampani, in this case). Let the AP Govt. state in clear words what is it that they expect to achieve - will the money be recovered, will the reasons for the losses be made known, how and why do they expect someone who left the company three years before the scam broke surface be aware and involved in it. The law is blind, but that does not prevent it from being (expected to be) justifiable.
on May 10, 2010All these white collar knowledge veterans join companies as independent or executive directors and cheats innocent middle class depositors who deposited their hard earned monies.<br /> <br /> There are thousands of such companies for which they have to pay for their sins. Modern denim Ltd, Morepen laboratories, Asia pacific investment trust ltd, Nagarjuna investments and whole lot of others. <br /> <br /> The poor pensions and aged mothers because of their blood thirst for money. Let them pay the price. He is not in prison yar! He is A/C bungalow somewhere. Why do you bother?
on Oct 4, 2009The kind of summary powers that the AP State Government has armed itself with are really absurd. Such powers offer the unscrupulous politicians and the cronies to play dirty games based on their hidden agenda. There is no doubt that gullible investors that regularly lose their hard earned moneys by the wheelings-dealings of the blade companies need to be protected. The problem is when the governments choose to apply their actions on a selective basis. Such tendencies are extremely high in AP. AP Politicians vie with each other to befriend successful businessman- particularly the unethical ones- and benefit from them materially as well as image-wise.<br /> But the AP government needs to know where to draw the line. It should refrain from causing damage to the image of a respected and internationally reputed merchant banker. It should prove the malafide actions of the target, before initiating drastic legal actions.
on Aug 8, 2009I am really disappointed by this article. the article is completely biased in favour of a "successful" businessman. I would have appreciated if the article had covered a broader topic like current depositor laws, etc. I am also offended by the usage of terms like " scam - ridden hyderabad"
on Jul 7, 2009Simply pathetic! Any action taken by the state governments in the southern states seems to need an ulterior motive. Really sad and pathetic !
on Jun 24, 2009This happens all the time in India, our politicians so blatantly and openly abusing the their authority for settling scores, for political vendetta or simply for extortion and blackmail. It is sad that law makers are literally taking law into their hands and still we call ourselves the largest democracy ?
on May 22, 2009what if someday a state govt. decides to protect its people and their monies from market listed companies with share transfer/brokerages at locations within the state. Will all the companies become liable and their promoters then be arrested if there is/was a decline in the share price as compared to price of purchase in primary or secondary markets, of any investor from public? If any co. stops paying dividends at any time ? since the present law of AP govt. is retrospective in nature would it mean that if ever in the history of listing of any co. there had been a loss to any investor (primary or secondary markets) then everyone associated with the company could be hauled in criminal case? after all just one law can enable this, all to protect the gullible public from evil businesses, esp. since neither the government nor the courts seem to recognise something called adverse market conditions and risks associated with conduct of any business.!
on May 22, 2009