The defining characteristic of the Narendra Modi-led NDA government has been the absence of even a whiff of corruption on the ministerial stage. The ridiculous and completely unsubstantiated expenses made utilizing Rahul Gandhi regarding the Rafale deal were rejected by the Supreme Court and India’s human beings.
However, a lesser-noticed characteristic of the Modi authorities has been its arm’s length handling of enterprise houses. Not handiest don’t have any favors been doled out to choose business people, but each strive has been made to apply the regulation guideline to all corporations, but huge and influential.
Recent tendencies underline that the transformation is taking area inside the Indian commercial enterprise surroundings after five years of the Modi regime.
Jet Airways, which as soon as dominated the skies, and whose high flying promoter Naresh Goyal used his fabled political clout to dictate civil aviation policy and to no longer pay off his large debt obligations, has been dragged to the National Company Law Tribunal (NCLT) for bankruptcy complaints with the aid of a consortium of 26 bankers led by State Bank of India (SBI). Following the techniques laid out beneath the Insolvency and Bankruptcy Code (IBC), 2016, the court docket ordered a period in-between decision experts to take manipulate of Jet Airways.
The Modi authorities have not been daunted to tackle even the large four auditing corporations. The Ministry of Corporate Affairs (MCA) has sought a 5-12 months ban on Deloitte Haskins & Sells and BSR & Associates (a KPMG network company). Previous auditors of IL&FS Financial Services (IL&FS), after the Serious Fraud Investigation Office (SFIO) discovered that they had connived with IFIN’s former directors in concealing statistics approximately the wrongdoings of the management regardless of having complete knowledge of the sorry country.
The government organizations are not terrified of taking on the influential English media and the Lutyens ruling elite. Securities and Exchange Board of India (Sebi) has lately barred Prannoy Roy and Radhika Roy, promoters of New Delhi Television Limited (NDTV), from keeping or occupying any position as Director or Key Managerial Personnel inside the enterprise for two years and one year, respectively, or retaining any managerial employees in any other indexed business enterprise. They are accused of concealing material statistics from shareholders to defraud investors even as getting into loan agreements with ICICI Bank and Vishvapradhan Commercial (VCPL).
Now, way to the Modi authorities’ no-nonsense approach, even public region banks have developed a backbone. Banks are now not shy to call massive guns a willful defaulter. These days, UCO Bank declared Yashovardhan Birla as a willful defaulter after Birla Surya did not pay off loans of Rs sixty-seven. 65 crores were taken to manufacture multi-crystalline sun photovoltaic cells, which became a non-acting asset in 2013. The public observes even carried a photo of Yash Birla as the defaulter. The irony is inherent in a financial institution that in the beginning belonged to the Birlas, affirming one of the circles of relatives a willful defaulter did now not cross disregarded.
Down south, the Indian Overseas Bank (IOB) has taken on actor became politician DMDK chief Captain Vijayakanth. Three houses belonging to Vijayakanth and his wife, Premalatha, are set to be auctioned on July 26 through IOB. The circulate is in a bid to recover a debt well worth Rs 5.5 crore from the couple. IOB may be auctioning the complete block of land and constructing Shri Anl Alagar College of Engineering at Mamandur Village in Kancheepuram district, residential assets, and a vacant plot at Saligramam the fact that their total fee is many times greater than the Rs 5.5 crore they need to recover.
There are always individuals who will see the above moves as adversely affecting the investment weather and a dampener on marketplace sentiment. Not distinctly, the supporters of the Big Four audit corporations are alleging that the government’s proposed penal movement will disrupt corporations and affect overseas investment into India.
Nothing will be further from reality. The uniform application of legal guidelines on all who do business is to be welcomed for it will place an end to crony capitalism, create the tons-wished level playing discipline for all companies –big or small –and thereby release the entrepreneurial spirit in India. More than the so-known as large bang reforms
What India wishes is the strict and non-discriminatory software of the existing laws to all organizations. Together with GST, the other main initiative of the Modi authorities impacting business, this has the capability to transform the commercial enterprise in India.