Yesterday a friend pointed out an interview of Mr. Azim Premji in Economic Times.
One quote was: “Subhiksha was unfortunate. I think it is a retail equivalent of Satyam. I think the media has completely ignored it, its a very interesting minefield for you. It is an out and out fraud, there is no question on it. The Company Law Board is investigating it. There was an overstatement of accounts, fake inventory, fake bills, fake companies that money was transferred to. At the time of investment that was not visible to us.”
Very strong statement from a very trustworthy man. However he did not say what conversation he has had with ICICI – and how he does not hold them culpable. And to think this is a ‘Qualified Professional’ who did it.
One venture capital CEO told me ‘Subhiksha is run by a very intelligent man. Sad he is too intelligent for me to deal with him. He scares me.’ And this was not a compliment.
However Mr. Premji may have come across such a company for the first time in his life. If his managers had done a due diligence…..a lot of this was visible. Just that Subhiksha got away with it so long.
About 23 years ago a clients driver hit somebody on the road – and the person eventually died. The lawyer advised him not to go anywhere near the hospital to inquire about the patient. The lawyer found out that nobody had claimed the body – and was disposed off by the Municipal authorities. Nothing happened.
You have heard of ‘Getting away with murder?’ I have seen it.
There are 2 sets of India – one which follows the rules. One which does not. Wipro belongs to the first lot. Subhiksha belongs to the second lot.
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