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The art of looting

J. Nanda Gopal

MUCH water has flowed under the bridge after the UTI dealt small investors a body blow. The subtle message was that in the liberalised scenario, where one's savings are concerned, it would be stupid to repose trust in any individual or institution.

And in terms of taking the investor for a ride, there is no distinction here between the public and private sectors. Several chit funds, finance companies and benefit funds have played havoc with people's trust and savings.

While some have simply vanished in to thin air, the not-so-lucky have been caught, though given the security of their misappropriated wealth, there is no ghost of a chance of being punished for wrong doing.

With private sector firms doing so well in amassing wealth dishonestly and very publicly, government-backed institutions, in their effort to keep up, have taken recourse to the same gameplan and have outperformed others through the raw power of being abl e to manipulate the stock market, corporates and brokers.

There is a saying that a goldsmith does not bat an eyelid to cheat, even while making his wife's thalibottu, a symbol dear to married Hindu women. The poor goldsmith would hang his head in shame if only he knew that the babus manning the mighty financial institutions have had no compunction in collecting money from the public with false promises and then telling the small fry to get lost.

With the UTI playing havoc with public trust in an unabashed way, there is a feeling that it will soon be the turn of other huge financial institutions, such as the LIC and the provident fund, to tread a similar path. Some banks have already shown their mettle in this regard.

Our people are known to always stay ahead of others in this matter. They do not have to learn lessons, in fact they are in the enviable position of being able to teach others the art of looting.

Consider corporates that have the money muscle to dictate to governments how policies should be framed to suit them. They raise hundreds of crores of rupees of `loans' from public financial institutions and never repay them, clearly knowing that they hav e taken the small investors' money.

They have taken care to stay free of all the legal hassles with the incorporation of a provision that their misdeeds can never be exposed by the lender for the realisation of the money lent. The institutions have to suffer in silently because they cannot recover considerable sums from defaulting corporates. The financial bodies are incapable of taking action, while watching their NPAs mount.

This is a new era. Looting has been elevated to the status of an art. How can one believe political and bureaucratic pronouncements that `efforts' to `improve' the lot of the less fortunate will ever bear fruit?