Willful default is much more than business failure, bank frauds: Jaitley
Voicing concerns about willful defaults at the 4th Global Business Summit, Finance Minister Arun Jaitley warned increasing cases of willful default would affect ease of doing business.
Arun Jaitley took a dig at banking regulators, saying " If a fraud is taking place in multiple branches of the banking system and no one raised the red flag, doesn't that become worrisome for a country. Similarly, top management who were indifferent, multiple layers of auditing system which chose to look another way, it creates a worrisome situation."
On rising case of frauds, Jaitley said, "Cases of willful default is something which is much more than a business failure and also bank frauds. If you periodically have incidents like these, the entire effort of ease of doing business goes to background and these scars on the economy take the front seat."
Jaitley said that regulators have a very important function, regulators ultimately decide the rules of the game and they have to have a third eye which perpetually is open. "Unfortunately, in the Indian system we politicians are accountable but regulators are not," Jaitley said.
"From both governance and expenditure point of view to have 2-3 elections every year is a serious challenge. At least if elections are held every 5 years India will see comfortable governance at the Centre and state, and policy formulation besides lesser expenditure," he added.