Reforms sans regulations led to frauds, scams: Moily | business | Hindustan Times
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Reforms sans regulations led to frauds, scams: Moily

India would have been able to avoid corporate frauds and scams in high places had it put in place regulatory mechanisms and certain policies, along with the introduction of liberalisation regime in 1991, corporate affairs minister M Veerappa Moily has said.

business Updated: Feb 28, 2012 21:14 IST

India would have been able to avoid corporate frauds and scams in high places had it put in place regulatory mechanisms and certain policies, along with the introduction of liberalisation regime in 1991, corporate affairs minister M Veerappa Moily has said.


The then finance minister Manmohan Singh had to "pronounce" liberalisation polices in 1991 as it was "inevitable" as New Delhi had to pledge gold with Bank of England, Moily said.

"But any of such (liberalisation) measures always should go along with other preparations," Moily told a seminar on the future of corporates in India.

"Immediately after 1991, first thing we should have done is destroying the 1956 (Companies) Act, and come out with a new act. Then many of these problems (corporate frauds) you see today would not have been there," he said. The Companies Bill of 2011 is now on the anvil.

While growth is good, it has many other components like inclusivity, regulations and it has to be sustainable, he said.