I recently started reading this book, which a friend suggested would help me in my project on Indian corporate governance.
Titled – The Target Book, by Shantanu Guha Ray, this book, which I request all of you to read brings to light how a true ‘Made in India’ story was destroyed by our very own politicians and bureaucrats. It was their unholy nexus that influenced or rather dictated market regulators to slap unreasonable orders on Jignesh Shah, who is the central character of the book.
One such order was merger of two of his companies – NSEL & FTIL.
The proposal made by the Ministry of Corporate affairs to merge FTIL with NSEL has caused disruption in the financial circles. The recommendation of forcefully these two companies is a direct assault on the prevailing system of administration of justice in our country.
Forced mergers are not a proposition that can be afforded by corporate India. The premise for proposing it in the first place is misleading as the real solution lies in the recovery from defaulters. It is clearly a case of MCA being led astray due to vested interests and mala fide intentions.
Instead of coming up with such inept and obtuse decisions, MCA should focus on ensuring the recovery process from the defaulters in this situation of crisis. Its application to seek six weeks’ time to respond to Financial Technologies’ challenge of final merger order issued in February this year holds a mirror to its skepticism and irresolution in this case.
For more information check The Target Book Reviews.