Accusations against Birla will hit sentiment: Narayana Murthy
Narayana Murthy came out strongly in support of Kumar Mangalam Birla and said accusations without due diligence against an industrial icon in the coal scam will not go down well with investors and could dampen business sentiment.delhi Updated: Oct 18, 2013 22:53 IST
Infosys co-founder and chairman NR Narayana Murthy came out strongly in support of Aditya Birla Group chairman Kumar Mangalam Birla and said accusations without due diligence against an industrial icon in the coal scam will not go down well with investors and could dampen business sentiment.
Earlier in the week, the CBI had named Kumar Mangalam Birla in its FIR in the coal block allotment scam for alleged irregularities.
“Kumar Mangalam Birla is one of the most respected business persons. So any accusation against him without a detailed, highly diligent and complete set of facts is not likely to go well in the eyes of investors abroad as well as in the eyes of business people in India,” Murthy said during an interview to CNN-IBN.
At this point in time when growth rate in the country have gone down, it is important that the authorities are 100% sure about their facts and data before making accusations against such an icon, Murthy added.
Industry leaders have rallied behind Birla in their support and slammed the CBI for acting in haste. Ficci president Naina Lal Kidwai said that a highly regarded business leader like KM Birla should not be made scapegoats of mere suspicion and misconstrued actions.
Godrej group chairman Adi Godrej said the development has sent wrong signal to India’s corporate sector and would create negative perception about the economy. “I think it is a bit ridiculous. It will spoil sentiment, perception. Several things have been done which will create negative perception about our economy.”
CII president Kris Gopalakrishnan said that while the CBI had the right to proceed against any person to ensure that the law of the land is preserved, yet “…it is desirable to ensure that all facts of the case are laid upfront before proceeding against respected and reputed individuals,” he said.