Mr. Birla is a progressive modern business leader of this
country: Mr. Narayana Murthy
Expressing serious concerns over legal cases against industrialists like
Kumar Mangalam Birla, Infosys founder N R Narayana Murthy said that such
developments can hurt investor sentiment.Terming Mr. Birla a good man and
progressive modern business leader of this country, Mr. Narayana Murthy further
urged for more caution and not to malign his name.
He also said that the recent court summon to ex PM Manmohan Singh, former
coal secretary PC Parakh and Hindalco chief Kumar Mangalam Birla as accused
in the coal block allocation case, has shaken India Inc. at a time when the
government is seeking to revive sentiment and boost growth.He also requested
the BJP government to draft a mechanism under which leading businessmen can
do their work without fear.
Commenting on economic growth and transparency, he said that there has
to be a recognition that for any accelerated economic growth there will be
interaction among politicians, businessmen and bureaucrats. "So, a mechanism
that enhances transparency of such interactions is very important. We have to
remove the current impediment of fear in the minds of all the three in engaging
with the other," Murthy said.
Lauding the government's move to auction coal blocks and telecom spectrum
Murthy said there was a need to provide transparency, clarity and speed in every
decision for allocation of all public resources.
Express similar concern following the legal cases against industrialists like Kumar
Mangalam Birla, top industry chambers said such developments can create
a "trust deficit between industry and government" and hurt investor sentiment.
Despite the growth and investment-friendly stance of the new government,
we are today in a situation where some unsubstantiated legal cases are being
pursued against well established and credible business groups and highly reputed
and leading industrialists like Kumar Mangalam Birla, based on dated perceptions,
interpretations and mere inferences," Assocham President Rana Kapoor said.
Ficci Secretary General Didar Singh said, "While we have the highest regard for
the judicial process, such developments do have a bearing on the overall investor
sentiment.
"At a time when the government is making all efforts to create a transparent,
efficient and equitable regime for investments and a business-friendly climate,
such developments tend to create a needless trust deficit between industry,
Government and society".
Another industry body CII had said such a development could create "uncertainty
and anxiety among investors" and dissuade them from investing in the
country. "It is our belief that Birla represents the progressive face of the Indian
industry, which does not indulge in crony capitalism and carries out his businesses
by the book," it had said in a statement.
Aditya Birla group flagship firm Hindalco had also said that none of its officials,
including Chairman Kumar Mangalam Birla, had pursued any unlawful or
inappropriate means to secure allocation of Talabira-II coal block in Odisha.
Meanwhile, Manmohan Singh's lawyers, led by senior advocate Kapil Sibal, are
likely to move the Supreme Court to challenge the trial court's order summoning
the former PM as an accused in the alleged irregular allotment of Odisha's
Talabira II coal block to a joint venture of Hindalco.