Salman Khurshid calls for special body to deal with corporate scams

CHENNAI: Corporate Affairs Minister Salman Khurshid has favoured creation of a special regulatory authority to deal with big corporate scams. He said his ministry is ready to work on the new authority if it is decided by the government. The minister said the laws of the land are adequate to investigate such cases and the investigating agencies are effectively doing their job.

Khurshid said since the IT company Satyam, which was hit by a financial fraud, came under his ministry, it could intervene and hammer out a solution. In the case of 2G, it is handled by the telecom ministry. His ministry could take up the case only if it is asked by the telecom ministry.

Earlier, speaking on ‘sustainable business’ at the second edition of India Corporate Week 2010, organised by the corporate affairs ministry and Madras Chamber of Commerce and Industry, Khurshid said corporates have no reason to worry over the developments in the last few weeks. There is no reason for the business confidence to suffer when the government has trust in corporates, he said.

The minister also said lobbying and public relations through media and industry bodies are part of the democratic process and are aimed at conveying views to the government.

The minister said the government is firm on corporates strictly following business ethics. “They should follow good business practices internally and demonstrate them externally. There cannot be trade off between CSR and bad practices, which are not good for the society and environment.”

He said his ministry is firm on corporates moving over to international accounting standards (IFRS) from April 1, 2011, while it is prepared to help those having any problem relating to convergence.