Today watching the entire episode of SATYAM computers and biggest corporate fraud the MD hatched in the history of India brings back some fundamental questions on the model of development we are planning for all of us. Software industry, Biotech industry, Retail chains, real estate, private banks and power sector are which are shown as icons of developments are seen suddenly falling.
Ramalinga Raju, SATYAM, Managing Director after getting caught in the controversies of buying shares in MYTAS infra (owned by ramalingaraju’s son and its name is reverse of SATYAM) and also getting blacklisted by World Bank on charges of malpractices today agreed that he the company balance sheets were manipulated to the extent of 5040 crores. Its shares have dipped by more than 70 % and the share holders lost more than the directors who have invested in the company. There are also questions raised on FDI marginalising the promoters and there by reducing their accountability etc.
Subiksha retail chain which is one of the first retail chains which came with a big fan fare closed down its operation last month in AP. Other retail chains are on the way (today’s local newspapers say most of them are making huge losses)
Last month the managing director of Nagarjuna Group was arrested for the financial crimes in the Nagarjuna finances. As you may be aware some time back private banks suddenly started falling Krushi Bank, Charminar Bank, Prudential Bank….the list if long
Are we going to learn lessons or going to continue more of the same? Who decides our future ?