ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Theorising on the Crisis

The current figure of the bank's dues from the company, which had stood at Rs 62 lakhs in 1968, is not known. In case it has been reduced, how was this achieved? It is also pertinent to ask on what considerations the bank allowed the company to reduce the advance from its sole distributors while it went in for fresh deposits from the public on a large scale? It is surprising, to say the least, that the promoters of the company should have been allowed to withdraw their moneys even as the general public was being persuaded to put in more money. What were the various watch-dogs of the public interest doing as this switching of hinds was taking place? (6) Three major term finance institutions, which had lent money to the company, now stand to lose nearly Rs 30 lakhs. With all the follow-up and scrutiny of their borrowers' working which these institutions are supposed to continuously carry through, how did the rapid deterioration in the com pany's working escape them? The finance institutions have powers to appoint their nominees on the Boards of companies assisted by them, especially when they have reason to suspect that the affairs of a particular company are not being properly managed. It is necessary to know what action these institutions took during all these years to save the company to safeguard the public interest.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top