Clarification on deposit acceptance hits the web on last day of closure of crucial financial year in the life of professionals. Acceptance of Deposits was most hot topic for the year 2104-15. Mca clarified its view through this clarification. Mca state that clarifications were issued on the request of stakeholders.
If you recall few months back mca had clarified that related parties other than direct related party can vote at general meeting. All these clarifications were apt and maintaining the context and sprite of law.
I was little disappointed not because of the direction of the clarifications but because of need felt to have these clarifications. You will agree that in Indian context parliament is law maker and government is regulator and responsible for its implementation. Parliament delegates certain powers to government to enforece the law in the sprit it was promulgated. One more power delegated is to make rules. By using this power government has already made handful of rules and issued several notifications and clarified its stand from time to time in last one year.
The breed of professionals in india or for that matter in entire world is expected to play a role to help the government to implement law and to help businesses to comply the laws. Undoubtedly this role comes with responsibility to interprete the law and apply to each and every situation and provide suitable solutions.
Unfortunatly after inactment of new companies act professionals are finding themselves into unsafe zone. Act has put all seniors and juniors into one platform. In order to play safe professionals are trying to interpreat the law in defensive manner. We all the time need not interpreat it in a way business wants it to happen. It started with a interpretation of applicability of new act to existing deposits under a fear that if there is mistake or reverse conclusion then client may land into a penalty of 1 cr. Our professional brothers were given a task to certify the position of the company and majority of them asked the companies to declare all monies accepted in DPT 4 without much bothering about interpreation. They forced us to do it in a manner they wanted.
I beleive this cant be a way to deal with the provisions of the law. Once we choose what we want, then we expect government to confirm it. And then we started expecting government to clarify its stand on DPT 4 and repayment of non deposits. Many were upset because clarification came just before the day on which all such deposits were to be repaid. Many impatiently advised and forced the companies to repay corores of rupees to members etc. Companies did that by borrowing costly money.
In this entire episode professionalism has lost the battle. This clarification is an eye opener for us to play our role more effectively. We need to be bold enough to tackle such situations in future. We should look forward to a era where government look at us for interpreation of law than we forcing them to issue clarifications.
Lets pledge to be a professional.
“We create our own destiny”
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