Home > Global Finance, Indian Economy, Politics, Uncategorized, World Economy > Right and wrong-The Times of India

Right and wrong-The Times of India


Those who support the change on the ground that the amendment merely puts in the statute what is already a requirement of arrest and part of police practice ignore the fact that the amendment alters the emphasis significantly, and mandatorily provides that the accused “shall not be arrested in respect of the offence referred to in the notice unless, for reasons to be recorded, the police is of the opinion that he ought to be arrested”. The sad truth is that India has a surplus of legislations but a poor record in enforcement.

By contrast, due to a combination of emotional reactions coupled with some jingoistic formulations, the lawyers have clearly got it wrong in their criticism of the LLP Act. The Act seeks to provide for the creation and regulation of LLPs essentially as hybrid entities which retain the partnership model but are closer to corporations in design and function. (via Right and wrong-The Times of India, By Abhishek Manu Singhvi, Minister in GOI).

Abhishek Manu Singhvi is a Minister in the the current UPA run Government. He is a legal eagle – and the sophisticated face and spokesman for the Congress Party.

Wrong is right, Mr.Sanghvi …

When you are worried about abuse of power by the police, your concerns  are quite misplaced Mr.Sanghvi.The Indian Police is doing a good job – and they can do without your cynicism. So you are quite wrong when you are worried about the police abuse of power – with this amendment in law.

All the 5 indices (below) of crime management create a bias for a lawless Indian society and rampant crime. With these four indices, namely: –

  1. High gun ownership
  2. Low police-to-population ration
  3. Low prison population
  4. Highest number of poor people in the world
  5. Capital punishment as a deterrent

against a stable social system, how does India manage low-to-average crime rates.

With less than 25 people per 100,000 in prison, India has the world’s lowest imprisonment rate. Cynics may snigger at India’s ‘inefficient’ police or the slow court procedures as the cause for this low prison population.

That can only mean criminals are at large and India must, therefore have the highest crime rate – which is not true. India has low or average crime rates – based on category. How can India have such a low prison population, with a poor police-to-population ratio and a crime rate which is not above the average – in spite of a large civilian gun population.

And what you think is a right move …

On the other hand, limited liability companies have created a huge debt mountains. What about expanding liability, instead of limited liability. While LLCs can have limited outward liability, they can create unlimited inward liabilities – in the way of debt, bonds, debentures, notes, paper, et al.

These two elements, limited liability and a separate legal entity, have made these Frankensteins different from any previous association of businessmen. The legal structure of corporations allow actual owners to hide behind a legal facade, without liability. These corporations have access to large amounts of fiat currency. Old debts are repaid by taking new debts. Competition is killed by raising entry barriers – which is again done by accessing huge amounts of debt. Some of this borrowings are irredeemable – and called equity.

Limited liability of the shareholders has meant that various stakeholders usually have little or no recourse – when things don’t pan out. Some stakeholders (usually shareholders and management) have access only to an upside, other stake holders, actually, finally take the risk. Such companies resist any attempt at accountability.

It is this ability to evade ethical practices and issues that differentiates these corporations from other business enterprises. From the massacre of millions of Indians during the 1857 War (by the East India Company), the many regime changes that corporations have pushed, the record of these organizations has been far from average.

Concentration Of Power

Newer methods to measure this concentration are devised. Today the most popular methods are the Fortune 500 listing and the Forbes listing. These listings finally demonstrate that half the world’s economic output is controlled by about 25,000 individuals. Add another 25,000 politicians and bureaucrats. We have about 50,000 people managing the lives of 5 billion people. Read this with the faceless entity aspect, it becomes more worrisome.

What Is Happening In India

Out of the 30 current Sensex stocks, which make up the Indian Benchmark Index, 15 started off as SME (small and medium enterprises) 20-30 years ago. These organizations today are lobbying (successfully) to ensure that other SMEs do not challenge and compete with these large corporations. Indian policy makers, apparently, cannot learn from successes.

Abhishek Manu Singhvi is so mixed up …

Just like his Government and party is …

The LLCs and LLPs are legal monsters that are the creations of the West to concentrate power and exploit their power.

SinghviSaheb – Get up and give up … your notions. They are mixed up.

Advertisements
  1. No comments yet.
  1. February 10, 2009 at 6:00 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: