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Dr D D Rishi
Hey I am on Medialย โขย 20h
In India, the industry takes to take the regulatory provisions a bit too lightly. Paytm is the recent example of someone having to pay heavily for it. It was doing roaring business to which RBI put an abrupt stop on 15 March 2024 for violations of regulatory mechanism. It was perhaps just that the person handling their RBI matters was not aware of the consequences of neglecting the RBI notices. It may be one of the known examples but unreported and unknown examples are many. Entrepreneurs and even established businesses fail to take into account the fact that apart from producing and marketing the goods or services, they have to take care of various regulatory laws like Companies Act, 2013, the Industries(Development and Regulation) Act, 1951, the Factories Act, the Minimum Wages Act, the Employees Provident Fund Act, the Consumer Protection Act, the RBI Regulations, and the GST laws apart from a host of other laws. Whether you like it or not, the industry has to maintain a horde of records and file a number of returns regularly. During my long years of working with the governmental regulatory agencies, I have observed that the most of the businesses employ a low-paid โhandymanโ to deal with the regulatory agencies. Quite often, he is not a trained professional but is just someone who is confident of โstriking a dealโ whenever there is a trouble with these agencies. Sometimes, this approach does not work and disastrous results follow. I have seen businesses having to spend crores and crores of rupees in litigation before courts for something which an honest and trained employee could have easily handled in the very beginning. Sometimes even that does not work and the business is left with no option but to wind up. If one studies the reasons for failures of businesses, this may be one of the significant factors. This is just to highlight the need for giving due importance to observance of regulatory mechanisms.
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