March 17, 2020
Saugata Roy opposes the introduction of The Companies (Amendment) Bill, 2020
Sir, under Rule 72 (1) of the Procedure, I beg to oppose the introduction of The Companies (Amendment) Bill, 2020. It seems that the Government has set up a committee consisting of representatives of the ministry, industry chambers, professional institutes and legal fraternity on September 18, 2019. It is periodically giving recommendations, which the government is bringing in the form of a law.
It seems to be that the government is heavily influenced by the representatives of the industry chambers. Whatever they are saying is good for ease of doing business, it is being accepted.
As Bhartuhari Mahtab aptly pointed out, today the CEO of Yes Bank Rana Kapoor is in jail custody for defrauding his bank for crores of rupees. About that the government had not done anything. And now it is said that this Bill seeks to decriminalise certain offences under the increase of defaults. In other words, this law seeks to relax regulations for companies in the name of greater ease of doing business.
I want to mention that one of the great boons of the 2013 Companies Act was the introduction of the concept of corporate social responsibility. There are many companies which are not observing corporate social responsibility. Now they have even relaxed.
The provisions with regard to corporate social responsibility provide that companies which have CSR pending obligation upto Rs 50 lakh shall not be required to constitute the CSR Committee. This is lightening, relaxing in the name of ease of doing business.
They are giving over the whole to corporates. Corporates in turn are hoodwinking the public. They are taking the people for a ride. We have also not forgotten the case of Satyam Computers yet.
So, some strict provisions should be added to the Companies Law. That is what I feel.