The government is going mysteriously slow on pressing for the passage of the Companies Bill, 2011. Business and political observers are flummoxed over what transpired in the past day or two that has led to the stalling of what looked like a done deal just a couple of days ago.
There are many theories doing the rounds. The uppermost, about the BJP’s reservations on a number of clauses, doesn’t cut much ice given that the party seemed to have come on board just days ago.
Another, largely unsubstantiated, reason being bandied around is that the immediate passage of the Bill seems to have fallen victim to shadowy corporate lobbying on behalf of companies that have much to lose if it is passed in the current form.
Ostensibly, the clause to make private placement norms for unlisted firms more stringent is proving to be the thorn in the flesh for certain companies whose plans to raise big money through this route would have come unstuck if the Bill was passed in the ongoing Parliament session.
The sudden turn of events has mystified even members of Parliament's standing committee on finance, which deliberated on the Bill. “We had made 172 recommendations, of which 165 have been accepted by the government. We don’t know why there is a delay. The only reason could be that some corporate houses want the bill delayed,” said a member.
But, such is the sensitivity around the issue that no one is willing to come on the record.
Having introduced the Bill in Parliament in December, the government cannot pull it out unless it gets leave of the House to withdraw it. The Bill has neither been withdrawn nor pressed for passage.
A top BJP leader said the issue came up in their meeting with Finance Minister Pranab Mukherjee two days ago, when he sought their support for the pension Bill. The leader said Mukherjee agreed to take on board a suggestion to include limited liability partnerships, which would enable a group comprised only of professionals from one category like chartered accountants, or company secretaries, etc to form their own company.
In the meeting, the BJP also raised the issue of representations made by some companies. “Pranab Mukherjee heard us out and told us he would look at the Bill,” party leaders said. The representations related to private placement threshold limits.
How sad !!!! BJP is lobbying Govt. for one category for professionals. It clearly seems the influence of ICAI that BJP is pushing for not only NFRA but also ICWAI name change.BJP and ICAI are creating obstacle in the reform which are in global practise.BJP is to be asked wear they sleeping till now? Why opposition for such reforms when the finance committee was headed by their senior leader. BJP clearly have double standards, one hand it is supporting ANNA and on the other hand it is lobbying Govt. for the favors of one category of Accounting professionals and in the influence of big corporate houses. People are watching.Thanks to Media for unrevealing BJP's true face.
Regards
KSB
All the strings will be loosened,the moment this lobby is bared to skin.See how the Govt is bowing down helplessly to all these nonsense in democracy.And if anybody dared to face it heads on like ICWAI and tell the truth,it will be crushed to death.
To use your words, there is a Chinese whisper that the lobby of Chartered Accountants (having a cell inside BJP party) has decided to dismiss the concept of a National Financial Reporting Authority as it is a severe blow to its authority on the accounting world.
The arrogance of this lobby has forced the return of the bill by pulling its strings with the BJP completely ignoring that it is a set back to reforms.
N.Ramesh
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