An increased incidence of senior executives being prosecuted and even denied bail has made managing a company in India a risky business
Over the past year, investigations in various high-profile corruption-related cases have led to the arrests of business executives. In the cases relating to the fraudulent allocation of 2G mobile telephony spectrum, for the first time in India high-ranking corporate executives were arrested on charges of colluding with government officials and politicians to gain favours for their companies.
India Inc was shocked, although its leaders avoided showing this publicly, as making political donations in return for favours is the norm in much of corporate India.
Reactions from within
The director general of the Federation of Indian Chambers of Commerce and Industry (FICCI), Rajiv Kumar, said he hopes that “the ongoing [2G spectrum] probe will lead to more transparent and robust regulatory framework and environment … in which the business and economy can grow”.
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