Spread of goondaism seen to have roots in biz receivables

THIRUVANANTHAPURAM: A worrisome rise in reports of goondaism across Kerala in recent months may be reflective of a nationwide contagion that has its roots in the rise in corporate receivables, particularly in consumer goods and services sold on credit, feel observers.

The goonda factor has been in the limelight ever since the murder last month of Paul Muthoot George, executive director of the Muthoot group, with local CPM leaders demanding to know just why the corporate honcho was in the company of goondas in the middle of the night when he was murdered, and others alleging a breakdown in the law and order situation in the state that led to the businessman���s death.

Industry observers, however, feel that the incident may have its roots in the increasing amount of receivables that are piling up and the pressure on companies to collect them, sometimes using strong-arm tactics.

���Over the past decade, there has been a consumer durables and services boom that has dramatically enhanced the quantum of equated monthly instalments that are outstanding. Mainline banks or companies may not resort to using goondas to have these receivable collected, but there are others who may do it���, says an industrialist who is also a member of a trade body.

Another businessman here suggests that the best way to nip the goonda menace would be for the government to take corrective steps through appropriate legislation so that collecting the receivables is made easier and more straightforward, adding that the receivables problem is not specific to any state but a pan-India issue.

The top honcho of a US-based technology company who hails from Kerala says India could learn from the West in terms of legislative measures backed by stringent implementation. He says there is clarity in legislation in the West about proceeding against defaulters, backed by a will to implement them, which in turn enhanced confidence of lenders or suppliers of services.

The Congress-led opposition in Kerala is demanding the resignation of home minister and CPM politburo member Kodiyeri Balakrishnan, alleging that the police are trying to protect the real culprits in the Muthoot murder mystery. But in an ironic twist to the tale, Mr Balakrishnan received this month the award instituted by a national magazine for the state with the best performance in law and order.