FIR against Birla a shame: India Inc

Corporate India reacts to FIR lodged against Birla

Reacting sharply to the Central Bureau of Investigation’s (CBI) First Information Report (FIR) against Kumar Mangalam Birla, chairman of the Aditya Birla group, in the coal block allocation scam, India Inc said the FIR was a shame.

By filing an FIR against the 46-year-old Birla, who enjoys an impeccable image among corporate leaders, the CBI has managed to create a wrong perception about Indian businessmen among investors, said Adi Godrej, chairman of Godrej Group.

“This FIR against a senior businessman is highly deplorable. Hindalco just owned 15 per cent stake in the coal mine, while the rest was owned by the government companies. Hence, I am surprised that just based on this, Birla has been named in the FIR,” he added.

What is surprising is that Hindalco invested a massive Rs 17,000 crore in setting up an aluminium manufacturing plant in Odisha based on coal from the mine, creating thousands of jobs, but till date, not a single tonne of coal has been mined. Hindalco will now have to buy coal from other sources, thus increasing its cost of operations. “This will create a wrong perception among the investors about India. We should strongly condemn such kind of treatment to a senior businessman of the country,” Godrej added. (DOWN THE COAL HOLE: WILL THE FALL EVER END?)

“It’s a shame that the businessmen are treated like this in India,” said Ajit Gulabchand, chairman of HCC. At a time when the country is facing challenges of a lack of fresh investments and stalled projects, an FIR of this kind will destroy entrepreneurship among Indian businessmen, CEOs warned.

What India Inc leaders are angry about is while they receive royal treatment from the local governments while making investments abroad, they are being treated like criminals in their home country.

“In India, entrepreneurship should command more respect,” said Kishore Biyani, chairman of Future group. “Everybody knows that it is a wrong step to file an FIR against Birla who has a very good reputation,” he adds.

According to business leaders, the FIR against Birla has come at a time when the rest of corporate India, too, is facing some probe or the other by government agencies.

While Mukesh Ambani’s Reliance Industries is facing a Sebi probe on insider trading, the Tatas are facing a Serious Fraud Investigation Office probe on giving a Rs 1,700-crore loan to Unitech, allegedly to fund its second generation spectrum licence.

Sunil Mittal’s Bharti group and Walmart are also facing an Enforcement Directorate probe for violations of foreign direct investment regulations. Anil Ambani’s company officials and Ruias of Essar are also facing trial in a court in the 2G scam. “We swing from one extreme to another. We have rules and regulations to ensure conformance and compliance. Witch-hunting is an extreme step,” Kiran Mazumdar Shaw, chairperson of Biocon, tweeted.