Industry bodies came out in support of Kumar Mangalam Birla, Chairman, Hindalco, after he and five others including former Prime Minister Manmohan Singh were summoned by a special CBI Court on Wednesday.
“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,” said A Didar Singh, Secretary General of the Federation of Indian Chambers of Commerce and Industry.
Singh also recommended caution and judiciousness while re-visiting decisions.
Assocham’s President Rana Kapoor said, “If India needs to grow at its potential rate of 10 per cent or above, it is critical to ensure a conducive, fair and transparent environment where industrialists and corporate leaders can openly consult with members of the Government, bureaucracy and regulators….without the fear of future legal and investigative repercussions.”
The industry body’s statement added that it fully commends the new Government’s stand against corruption and urged for cases such as that of Kumar Mangalam Birla to be resolved on priority an expeditiously to avoid unwarranted embarrassment for business leaders.