and imprisonment and entrust simplementation to one specified authority with no possibilities of

overlapping. The financial penalty should be reflecting the size of the fraud. With a view to enforcing
the law and to expedite justice, spe- cial courts could be created.

Corrective action is long overdue if corporations are not to cheat stakeholders and the public.
Indian corporate promoters often milk their com- panies by appointing procurement and
distribution agents, by under and over-invoicing imports/exports, evading taxes, indulging in
insider trading and dressing up balance-sheets. Satyam belonged to this category, which is the
normal prac- tice in most brick-and-mortar companies.

The law and administration should come down heavily on breach of trust and fraud. If an auditor
fails in his/her duty in India, he/she now faces a ridiculous penalty of INR 10,000 and a maximum of
2 years imprisonment, whereas the US Sarbanes-Oxley Act prescribes imprison ment for 20 years.
 2. CASE STUDY

1. "Experience is the name everyone gives to their mistakes." Now that Vijaya Mallya
has become a defaulter in loan payment. What lesson do you think banks can learn
from the incident?

Ans -The lesson I think bank can learn from the incidents. The amount that Mallya failed
to repay to banks is more than the total default on education loan in the country at a little
over Rs 5,000 crore. Lack of transparency weakens our public banking sector. In the age of
information technology and the Excel spreadsheet, the necessary transparency is literally
just a click away.

The issue now snowballs widely because of the inefficiency of the banks in acting at the
proper time. These wilful defaulter s are emboldened because of political parties and our
legal system which is long and gives convenient ways of escaping from it with the result
the public sector bank profitability is affected and the public money is wasted because this
could not recovered

I fully agree that loan details must be disclosed to public. This must be debated at length
that why RBI is not in favour releasing the list of borrowers to public.

Do you think Vijay Mallya's strong business background and political influence