Bankruptcy, is not a phenomenon only in capitalism, but in all "isms" which are misused. How did the mighty economy of the erstwhile USSR collapse? The author goes on to give an indirect hint (reference) to Sahara Group, as a company which is into Ponzi Schemes---dangerous, HORRENDOUS and needs to be contested in courts. 2ndly, what about Ambais, Ruias, Robert Vaderas, and countless others who have used the system to their hilt---be it Socialism--Capitalism-Hotchpotch or Capitalism/Socialism......??!!
The article is one sided, it does not give the other side of the story or Sahara Management's viewpoint. With regard to the payment of Rs.5,120 crore, Saharas have claimed that only Rs.2620 crore remained to be refunded to investors and it has already paid Rs.19,400 crore to the bondholders. The article also fails to speak about the case of SEBI, which rests on thin slice of ice (Please refer to the August ruling of Supreme Court).
SEBI's contention was that given the number of investors, the bond issuance was a public offer rather than a private placement of securities as claimed by Sahara. The regulator's orders were then endorsed by the Supreme Court late August last year. According to me, it was actually the fault of the lead managers or those who advised Sahara Group, in this respect. Sahara only carried out the fund raising according to the suggestions of the expert committee. But this article seems to put the whole blame on a group, which is instrumental in generating, lakhs of jobs in Bengal and the entire North East----many families run on the income generated from Sahara Finance Schemes.
In the US, the government themselves have helped the companies who were debt laden, inspite of so much criticism from the media. And now we know the US, economy is booming. But here we witness politics in everything and a large group of TRP hunting, journalists of India are biggest blots to Indian societies. Some are like hardened criminals....but escape due to nearness to political establishments. Do we hear these days about Zee TV extortion case? It has gone into deep freezer, but if the same had been done by others, the Indian media would have sequeezed it and sucked it till the last drop of the juice in it---THE PARASITES....!!]
|The Cartoon, Courtesy: The Epoch Times|