India’s celebrated industrialist, the owner of one of India’s largest automobile manufacturer, Mr. Rahul Bajaj has asked the central government, not to shackle the industry and have some faith in it. He was reportedly upset by the government’s excessive and unnecessary regulations.
In the recent turmoil over governance deficit and multitudes of scam, implicating senior leaders, raised by many well-known industrialists, chairman of Bajaj Auto was of the view that generalizing of the entire population should not be done. He was of the belief that the federal government should have a more trust-based relationship with the corporate world, since by virtue many of these businesses are done in good-faith. He further warned that due to some rotten apples the government is trying to paint every corporate house with the same brush by shackling them with unnecessary regulations.
Talking with representatives of the CII (Confederation of Indian Industries), Mr. Bajaj said that exceeding the desired level of regulation has the potential to act as a brake for the growth in the sector. The Indian automobile sector has still not grown enough to take advantages of the economy of scale and has still got many things to catch up vis-à-vis global automakers that any excessive regulation will prohibit the industry to reach the zenith of its potential.
He further said that Indian companies are not against regulations per se, but stressed that innovation and entrepreneurship should not be regularized and there should be an atmosphere of trust. Giving a real-time example of Bajaj motors itself, he detailed the gathering about the independent director’s role that they would certainly not permit the management board to do anything untoward and put at the stake the company’s reputation.
On the other hand independent directors also will put at stake their reputation by letting Mr. Bajaj have a free reign over the company’s affairs. He further said that in the first place they will not jeopardize their reputation by letting him do as he wishes, but if he persists then for sure they will leave the company, and everybody will ask tough questions when no less than 3 directors leave the company at the same time.