The Economic Times published an article on Indian companies in its recent edition. One of the disturbing nature of India Inc is that it controlled by the “Promoters” and not by the “stakeholders”. The majority of the companies listed on the bourse are controlled by the “promoters”.
This is against the corporate governance, whatever that term means, it means one clear thing: the shareholders do not control the companies they invest, but those who started the companies as the investors and promoters.
This is what has happened in the case of Infosys which embroiled in controversy as to who controls the company. Suitable amendments are called for in this area, particularly making the stock market more transparent and the responsibility shifting more towards the shareholders.
A few people controlling the fate of the company developed through people’s money is against the principle of ownership. The ET showed that out 500 companies, over 350 had the control of the investors and not of the shareholders, though these companies are listed on the bourse.
As India started opening up its economy since 1991, the Indian capitalism started employing new methods of looting the state and even earning money from the state through undervaluation of the imported goods including minerals like coal from the countries like Indonesia for the thermal power plants run by the private parties like Adani.
Coal is the new gold in India for the burgeoning thermal power plants and though the thermal power plants must be replaced by the cleaner and greener energy, the India Government is not ready to phase out the thermal power plant. The investments made in the thermal power plants is huge.
The companies like Adani creates a complex network of agents throughout the globe to get many benefits and use the loopholes in the laws to exploit the country. The Department of Revenue Intelligence (DRI) is an important institution and it has to inquire into serious lapses.
One of the difficulties involved in the inquiries of the DRI is the working with the other foreign governments to know the patterns of the imports in India. The country of origin has been hidden in the series of shipments from different locations. It is a complex web which is difficult to track and that is why it makes easy for the companies like Adani to dodge the Government institutions.
Now that the Indian capital can donate as much as they like to the RSS/BJP through electoral bonds, the capitalism and Brahminism will have a complete run in this country and that is why the time ahead is critical for the survival of the Indian democracy.
Author – Mangesh Dahiwale, Human Rights Activist