Concerned over the increasing instances of financial wrongdoings by corporate, the government on Sunday said those who are guilty would not be let off just by payment of some fine. “We are making stiff provisions under the new Companies Bill, 2008. The number of crimes for which provisions of compounding are available under the present Act are being significantly reduced,” Minister Prem Chand Gupta told reporters. As per the new Bill, he said, the penalties for the economic crimes will be increased commensurate with the gravity of offence and also the number of offences which can be compounded will be decreased.
The government had introduced the new Companies Bill in Rajya Sabha to replace the existing legislation which was enacted in 1956. “I have always been of the view that our corporate should get a free hand and a level-playing field with the best regulatory practices in the world, but at the same time with accountability,” he said when asked about the government’s role in curbing corporate frauds. Dubbing the Satyam fraud as an “aberration”, Gupta said the government would do everything to make corporates more accountable. “As of now the penalties and fines are very less but under the new Bill these would be increased substantially,” he added.
