Firms may be forced to reveal vital stats
New law to make it mandatory for companies to share operational info with govt; heavy penalties, including jail, for errants.
By Neelakshi Rana & Subhash Narayan, TNN |
NEW DELHI: Stats comparison with bikini may soon stop, at least for India Inc figures. The Collection of Statistics Act, 1953, is set to be replaced by a new legislation that empowers the government to seek sensitive corporate data pertaining to fixed assets, working capital, outstanding loans, wages, contribution to provident fund and staff welfare activities.
Companies refusing to part with the information or providing inaccurate data would face stiff penalties. The Collection of Statistics Bill, 2007, expected to be introduced in the winter session, may also provide for imprisonment of promoters resisting sharing of information or providing inaccurate data.
“Securing credible data from the corporate sector, especially unlisted companies, is the biggest problem we face. The proposed Bill addresses this,“ an official in the ministry of statistics and programme implementation (MoSPI) told ET.
“The parliamentary standing committee evaluating the Bill has suggested changes so that the ministry is armed with more powers. It has said fines are not enough, erring companies should be made liable, and even suggested imprisonment. We are considering whether to include this in the Bill,” the official added.
Under the Collection of Statistics Act, 1953, sharing of data by companies is voluntary. The new law would not only make this mandatory, but also arm government officials with powers to verify the accuracy.
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The new Bill imposes a fine of Rs 1,000 per day of default on companies and individuals. It has, however, built in safeguards to ensure the data is used for bona fide research and statistical purposes, and not made public in any form. Officials found guilty of revealing sensitive information would attract penal provisions.Apart from corporates, the Bill would also cover other entities that provide data to the ministry. The corporate data is largely used by MoSPI to prepare the Annual Survey of Industries.
The new legislation would help create a more comprehensive national database on businesses that truly captures the diversity of industrial activity in the country.
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