Three promoterless companies. The most marquee of Indian corporates. Seem to have been taken over by individuals who have no shareholding, below average academic credemtials, zero support from stakeholders and are unlikely to win a shareholder vote if subjected to one.
How did these individuals come to occupy these seats of power ? Who supported them and why ? How do they manage to retain their slave King status inspite of public statements which would have led to a mid level manager being sacked.
Is there a deep state involved ?? Are they front ending for a hostile acquisition baron. Do we have rule of law or rule of the gun.
More importantly – do we have a complete collapse of the judiciary. And of regulation.
In the case of HDFC, a highly credible Chairman turns whistleblower and is called a liar. Instead of taking immediate action, RBI rushes to issue a character certificate and a public statement of appreciation. Since when did it become the mandate of a regulator to issue certificates of appreciation without an investigation. Especially when a highly credible chairman has resigned. The company then buys a letterhead to do an ex parte investigation without even speaking to the Chairman to declare his unknown allegations / averments to be false. How is such a law firm allowed to continue holding its Bar Council membership.
In the case of Tata Sons, Cyrus Mistry was removed illegally and a slave King appointed in his place. The legal system failed to protect Cyrus Mistry. The man then met a violent death in a car accident. Was it an accident or something else ?? The slave king drama continues and beats any soap opera on Netflix.
In the case of L&T, India’s premier heavy engineering company – company resources are diverted into completely unrelated areas like buying a gold loan network and entering the residential property development business. All kinds of irrelevant businesses are acquired at fancy prices. Turnover is propped up by activities like trading in construction materials. Third rate engineers are hired at class 4 salaries and made to work like labour at construction sites. Fourth rate quality of construction. Not a single good quality iit engineer is hired in three years.
When an investor looks at investing in these marquee companies, he apprehends governance failure, absence of rule of the land and collapse of corporate democracy.
FIIs withdraw from premier IPOs fearing systemic collapse. The judiciary is unable to guarantee rule or law and are themselves trying to learn best practices from Tatas to incorporate in the collegium system. Judicial morality is at all time low. A judge found with a ATM load full of cash has resigned but his resignation has not been accepted. He is now a judge of the Allahabad High Court with no duty and full salary.
When kids go to school, can a mother counsel them that if they work hard and behave morally they will do well in life.
What role models are we creating.