BY Ranjit Kapoor.
Your comments in the Economic Times dated 10th August 2018 to keep criminals away from politics could not have come at a better time than now, when a distinct erosion of values is visible. We see that criminals are still eligible to become lawmakers despite repeated cries.
An entrepreneur of today is like an “Antelope” and vulnerable to attacks from all corners. Not only this Government but sections of the media have in the past launched “Save the Tiger” campaigns, but unfortunately, there is no platform available to “Save the Antelope”, which is a vital cog in providing much-needed support to the Government’s initiative of “Make in India” and is the backbone of entrepreneurial zeal which has been the mainstay of economic development in the country.
My second reason for writing is the recently concluded conference on “Human Values and the Legal World” in Prashanth Nilayam on 11th-12th August. Your message was overwhelming, and what caught my eye was your convincing statement that Human Values form the bedrock upon which the legal world works. You further explained in your message the essential attributes, which are fairness, equality, mutual respect, and compassion, as important values.
This is true, but still, sometimes there are reviews of orders in the judiciary, thereby granting the available opportunity of rectifying an error or mistake, which gives birth to remarkable justice, Sir. Once any error is committed and is subjected to revision for justice, it does not take away the sheen of the values on which our legal system is thriving. If that be so, then how far is it appropriate that a victim entrepreneur is sent to the gallows without being given an opportunity of revival?
This is particularly true in the case of the MSME sector, which forms the backbone of economic development in the country, industrial growth, and is an important cog in the wheel of employment.
If we trace our ancient history of even Treta and Dwapar Yug, traces of criminality can be seen and there is nothing new which we are encountering today, albeit the numbers may be more due to the size of the population. Therefore, how far is it justified that stray incidents of frauds or heists create an atmosphere of trust deficit, and an honest entrepreneur becomes a sacrificial lamb at the altar of such trust deficit? Particularly when he is effectively contributing to employment and filling the coffers of the exchequer. I strongly feel that this doesn’t augur well for the future.
From BIFR to SARFAESI to the IBC code, the laws have become stricter with a focus on realization to ease the cash flow of banks, but it will be interesting to analyze the real tangible gains that have come as compared to the damage to the industry and loss to the exchequer due to time loss in the processes.
It is important for the banking system to have reviewed the appraisal and audit processes simultaneously to arrest the situation. Unfortunately, the manner in which the potential and net worth of IRPs (Insolvency Resolution Professionals) is being projected by business channels sends a dangerous signal to the requirements of industry in the country.
It has therefore become a dire, immediate, and urgent necessity for the whole gamut of the powers that be—the Government, the industry associations and chambers, the financial institutions and banks, and the Judiciary—to address the escalating woes of the MSME Sector. The catastrophic event of the economic meltdown in 2008 and the mishandling by banks thereafter have increased the woes of this sector. It would have been prudent to have restructured all MSME units on a sustainable debt basis rather than taking them through the process of the IBC code in the best interest of the nation.