Breach of conduct in corporate governance is quite unsettling and throws off those who consider themselves protected by the law of the land. I was wondering, Who do these people turn to?
This is in context to the NSEL case that surfaced in 2013 and shook up the financial roots of India. I recently came across this book by Shantanu Guha Ray, that uncovers all the aspects of the NSEL crisis, including all those SAFE & RICH men who actually orchestrated it.
With discrepancies worth Rs 5600 crore, it not only reduced NSEL into a defunct body but also unduly brought its parent company, FTIL, to bear for flawed corporate governance. Ever since multiple government agencies appointed to investigate and catch wrongdoers have either fallen off-track or been misled by vested interests.
The most unsettling of verdicts has been the proposed merger between FTIL and NSEL that forces 63,000 unassuming FTIL shareholders to cover for irregularities accrued at NSEL.
There has been no explanation whatsoever on this unjust step, which has been issued in “interest of public”. This leaves us with no other explanation but assuming that the Government has been blindfolded, and their faulty system which is making one pay for deeds of others, is on a vacation. Amid setting a baffling example across the globe on handling corporate cases, the Government is also turning a blind eye towards the 63k shareholders of FTIL, Jignesh Shah.
Ideally, the recourse here should center on recovering dues from real defaulters – the brokers– who are charged with conflicting investor claims and client complaints, rather than passing a verdict of a merger.
Do we expect the Government to wake up anytime soon?
I hope the book does the needful.