Knives out for rogue investors

By Suman K. Shrivastava |

Ranchi, Jan. 18: The Jharkhand government, which is sitting on a pile of MoUs worth over Rs 3 lakh crore, is planning to take legal action against rouge investors who have signed deals with the state and used allocated resources for profit without setting up their promised projects.
Chief minister Arjun Munda has directed chief secretary S.K. Chaudhary to create a dossier on the status of all MoUs signed by the state government since 2001 ' as many as 100 ' so that action could be initiated against those who had circumvented norms to generate huge profits unethically.
Most of these MoUs, primarily in the steel sector, were signed during Munda's earlier tenure in 2005-2006. But, now in his third stint as chief minister, he has steered clear of mega investors, focusing more on IT investments and projecting a government that is sensitive to the land rights of tribals.
In a letter to the chief secretary, Munda listed several malpractices adopted by dodgy investors. He said a few investors, after being allocated resources like iron ore mines, coal blocks, water and land, sold off their stake ' or a sizeable chunk ' to other organisations at astronomical prices.
"Besides, a handful of investors approached banks and financial institutions for finances using the MoU and the resource allocated as tools. A few went for IPOs and created huge wealth for themselves in the process," he said in the two-page letter dated January 7. Some organisations, he added, also got into joint ventures in the guise of entering into technical collaborations by selling a large number of shares and made huge profits.
Munda said the government was not averse to the idea of raising funds for setting up industries by adopting fair, honest and legal means. But, it was unacceptable for an investor to adopt wrong practices for generating resources circumventing the norms laid down by the government.
Similarly, the state would not tolerate it if investors projected the MoUs or letters of allocation of natural resources as tools mischievously and fraudulently.
The industries department is to prepare the detailed report on the status of MoUs on the basis of parameters set by Munda himself (see box).
Chaudhary, who has been told to go through the industry department report, will then recommend suitable action against the rouge investors. This will include initiating appropriate punitive and legal action, cancellation of the MoUs and allocations of resources.
Industries secretary A.P. Singh said he had received the directive. "We will begin our job soon," he said.

The above is from the Telegraph.

It cannot be denied that a majority of businessmen make it their business to loot the governments wherever and whenever possible. However, in most cases, the government itself is to blame.
Businessmen are asked to fork out larges sums to politicians and officials from the top to the bottom even before the project underway.
Why is it that Narendra Modi is attracting so many businesses?
Why is it that the Tatas shifted their Nano project from Bengal to Gujarat?
It is because businessmen get all clearances within one week in Gujarat.
Can Jharkhand and Bengal do that?
No!
Then why blame businessmen.