Greed. Is there any code?

 NPAs erode the Capital available for funding activities. At a time when India is racing towards achieving a US $ 5 Trillion target, NPAs stand at Rs.5,71,000 Crore which is nearly equivalent to India's defence budget. That should be a concern for all.

The causes of NPAs are many. Some are external, and some are purely self-inflicted by the management of the organizations. Out of that, some are avoidable if identified early. One of the reports mentioned that wilful defaulters owe the banks to the tune of Rs.353,000 crores.

This is causing the Lawmakers to find ways to tackle the menace. Company Law makes it mandatory to have outsiders on the board of directors of every Public Limited company. The Insolvency and Bankruptcy Code was introduced to preserve public money. Corporate Governance and ethics are gaining widespread popularity. Why suddenly Ethics, Governance, Vigilance etc., are gaining prominence? Are they new jargon in the Business Management theories?

That reminds me of Kautilya who mentioned in his treatise "Arthashastra" Book I Chapter 9 how to detect the "embezzlement of state revenue by the servants". And this book was written 2600 years ago. What causes this behaviour? Greed. Bhagavad Gita Chapter 16 Verse 21 declares Greed is one of the three doors which open to hell.

These two books are thousands of years old. Greed existed since man existed. Despite repeated teaching by various Gurus man could not get rid of this enemy. One man's greed damages the society as a whole.

The whole world is increasingly getting connected and has become one market. The market size for every product has now grown to be 8 Billion consumers. Be it food, education, an automobile, or a banking service the market size is enormous. A Scientist can benefit 8 billion people with his invention. An artist can entertain a similar number of people with his art. A businessman can fulfil the needs of the same number of people. A scammer too has a huge market to tap.

This reminds me of one of the scenes from the movie "National Treasure". The quote is from the Declaration of Independence "But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.--Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government.

The Insolvency and Bankruptcy Code is made on these lines to suit the corporate world. Under this new law, about 800 companies have been rescued by NCLT. This should send a strong signal to the entrepreneurs to continue working hard and keep their greed in control.