Tuesday, December 1, 2009

All animals are equal.. Some are more equal

http://www.bloombergutv.com/news/latest-business-news-india/38912/rcom--rnrl-violated-ecb-norms--govt.html

As per this report, some Anil Ambani (ADAG Group) companies have apparently violated the Central Bank guidelines regarding 'end use' of ECB raised overseas.
The stock markets ignored this news completely. ADAG group has clout and size and will get away with this, with a rap on the knuckles at worst.
And, penalty if any, will be paid by the company and NOT by the directors, who can go on with life as usual. Of course, if it was a small unknown company, the Central Bank would have put it out to dry.
In India,like in the US, white collar crime is a mere transgression. This being a RBI issue, there would be a 'prescribed' penalty. In short, when the law prescribes a financial penalty, the interpretation is that the penalty is merely the price for the violation!
Wonder why media bothers to report this at all.

1 comment:

T.V.Suresh said...

Dear Bala,
It is absloutely a "custom" in India that white collar crimes committed by the rich get away with minimum penalty and is buried fast!The shareholder pays for whose mostake and he will still invest, where else will he go?Cult follwoing and the brand following is the craze of the people , can we help it?
If you are rich and influential and own a TV channel or have nexus to a movie star or a politician you can come to the centrestage fastand even become a Minister soon. Coroporate governance, legislations, laws are only for the small timers, the bigfish always get away, even Raju will be out with all glory very soon!
It is a pity that we have to share the and breathe the same air that these people breathe! No values or ethics!Dynastic rule is here to stay and it is a curse.
Suresh