Wednesday, January 21, 2009

Corporate Fraud

"Satyam Computers" is the tip of the ice berg. Scores of companies are doing similar frauds. It is obviously done with the connivance of unscrupulous audit firms and with the blessings of the all obliging supervisory and regulatory bodies.
Till recently the India Inc. was boasting of our businessmen in the elite club of trillionairs and billionairs and it was projected as the economic growth of the nation. But it was not a healthy growth.Where from these billions came ? They did not represent the truth or the real assets of the company but were imaginary figures based on the inflated value of shares. Manipulations were done freely in the market to inflate the prices and to keep it rising. False accounts were projected in the balance sheet to present a glossy picture to cheat the investors. The recession is the net result of all these manipulations and of the malignant growth of economy. The so-called industrial growth has not contributed to the actual development of the country but only filled the pockets of the master manipulators.
Agriculture was sidelined in the mad rush for industrialisation conveniently forgetting the eternal truth that there is no substitute for food. People are deprived of their right to cultivate food promising the eldorado of industrial growth.They are advised to cultivate the habit of Kentucky Fried Chicken and Coca Cola. Majority of indians are struggling for a square meal a day. 'BMWs' and 'Caddis' are offered to them but not food. Agriculture lands are converted into Special economic zones. Lakhs of crores of rupees are lost to the exchequer every year by way of tax concessions. The foreign exchange earnings go to the coffers of the promoters.
Why should we provide financial help to bail out these fraud companies using the public money belonging to each one of the tax paying citizen of India? How they help in the economic growth of the nation? It is time for us to decide our priority; whether to go for the frauduldent companies or concentrate on growing our food.