Laws with huge holes are very profitable.

Seems that minority shareholders have forced Maruti to seek their approval before setting up factory in Gujarat. Maruti wanted to set up a 100% subsidiary in Gujarat and sell the cars it produced at cost plus surplus value to its parent company. Institutional investors, such as LIC, which holds 7% of shares, mutual funds and foreign investors, objected to the vague wording because they hold shares in the parent company and not in the subsidiary and hence would not be able to check its books to see what profits it made because that would determine their dividends. Maruti has clarified that it will not make any profit or loss when it sells cars to the parent company. This is being seen as a great victory for minority shareholders because of the safeguards in the new Companies Law. But is it? We must not forget that the government also controls a vast number of companies, called Public Sector Units or PSUs, with millions of minority shareholders. In an act of wanton economic vandalism the Congress led government has destroyed Rs 6.83 trillion of taxpayer wealth and Rs 1.7 trillion of investor wealth. MMTC shares have dropped from Rs 1030 in 2011 to Rs 48.15 today, a drop of 95%. Naturally its market capitalisation has dropped from Rs 1.03 trillion to a mere Rs 47 billion. Market cap of BHEL has dropped from Rs 1.07 trillion to Rs 664 billion, SBI has dropped from Rs 1.68 trillion to Rs 649 billion, NMDC from Rs 1.06 trillion to Rs 463 billion, Coal India from Rs 2 trillion to Rs 450 billion and ONGC from Rs 2.55 trillion to Rs 259 billion. How has the government managed this magical feat of vanishing money. Firstly, ministers treat companies under their control as private estates to provide for them and their families. Thus when Mr Praful Patel's daughter wanted to fly to the Maldives with in-laws Air India provided a larger plane so that they could all have business class seats. Fights went with 50 vacant seats each way. Air India is Rs 500 billion is debt. After running up a huge fiscal deficit the Finance Minister forced PSUs to pay massive dividends to bridge the gap, leaving no money for further investments. Lord Conrad Black was sent to prison in the US for looting his company, Hollinger International. Will any politician go to jail for looting the taxpayer. No. Why not? Because our most revered Finance Minister thinks that they are our sovereigns. Our laws cannot net the biggest criminals.