Tag: Law

Categories
Miscellaneous

THE CASE OF THE MISSING BANIAN

Guest post from T.R.Ramaswami
The case of the missing “bullet-proof” vest is shooting along and our famous detective, or is it “defective” of the police force (farce?) Shri Hairlock Shome has solved the case – here is the gripping story.
TV Anchor Halka Butt : What has happened to the vest?
Union Home Minister : If the state government and the city police cannot find the vest I am very sorry for that.
Istate Home Minister: Arre, har mahina mere “Home” mein mera vest goom ho jata hai. Woh rail bridge hadsa ka file bhi goom ho gaya. Abhi bridge bhi goom ho saktha hai. Mere khayal mein koi “vested” interest iske peeche hai. Is vest ke peechey itna time aur paisa waste hotha hai. Ek vest goom ho gaya tho doosra contract mein aur ek kharidh lenge. Itna bada shahar mein aisi choti cheez – vest, file, bridge, ithyadhi, ithyadi tho goom ho saktha hai.
DG State Police : The city police does not come under me or report to me.
City Police Commissioner: We have filed an FIR for theft. I have asked DCP Rupa to investigate. She knows all about vests, banians and chaddis.
DCP Rupa : I have put the entire police dog squad to sniff out the vest. They have been sniffing all over the Mahalakshmi dhobi ghat. So far they have been only able to sniff chaddis.
Chief Sarkari Kutha : Bow, bow-wow, bow bow wow. Bow-wow bow-wow bow. Bow wow wow, wow, bow wow.
Translation of above: I smell a rat and shall soon let the cat out of the vest.
– T.R.Ramaswami
 

Categories
Miscellaneous

Power of Ethics

“Badh acha par Badnaam Bura”
It is ok to be bad, but if you are infamous for being bad, then you are screwed.

Lately I have come to a realization that:
1. Most people inherently feel a compulsion to do good. If they have morally/ethically wronged you, then harping about it, could make them feel guilty. And a guilty person often ends up yielding more than he/she should.

2. Satyawadi Harishchandra was a fool and could never be successful in real life. The question about whether one should be ethical or not is entirely dependent on “What kind of public image you want?” and “What implication would that public image have on you?”
eg: A loan shark who is humane and considerate is more likely to go out of business than the one who beats the defaulters into a pulp.

PS: This post is going to be very controversial. however I am just distilling the learnings I got by interacting with some successful people whom I admire. It maybe because I am picking up the wrong role models.

 

Categories
Investing

Indian Bankruptcy laws

I have been hearing again and again of people driven to suicide by loan collectors or in this peculiar news, defaulters killing their bankers.

But have you noticed one thing in common among all these defaulters…. NONE of them had filed for bankruptcy….WHY?

In a business losing money does not mean that you had embezzled funds.
80% of the business fail due to cash flow problems and those can be over come by talking to bankers to extend the loan, or with the help of a short term loan from friends and family.
rest of the business usually failed as a result of non conducive market scenario and is part of the learning process.

I agree that in traditional societies like India, being fired from the job or failure in your latest venture makes you the center of the town gossip… but who cares about the world… you have responsibility towards your family, your kids and killing yourself/banker does not solve the problem.
Try talking to your banker to extend the loan tenure, sell off some of the assets and see if you start over again… if you still cannot.. then don’t be shy, ask for help… you will be surprised to know it coming from unlikeliest of the places. Friends and family might help you because they know you are a good man. More often then not acquaintance often pinch in. Often its a pure business deal, where they pump in money in return of sale of assets/partnership… sometimes they do it because they have faith in your business skills and they know that this is a temporary phase.. in future you will not only succeed, but will be gratitudeous.

If nothing works, then don’t start your evasive tactics… Declare bankruptcy, take the assistance of the law and discharge your loans and live life honorably.

India has bankruptcy laws dating as old as 1874… and today’s law clearly demarcates the business/company’s assets from the personal assets… it distinguishes between the assets of the family and your assets and has all the features that allows you to write-off the loan once and for all and start again. Once you start the bankruptcy proceedings, the bank will audit you, you might be asked to visit the court/negotiation table a couple of times… but can no longer harass for the dues…

Lastly a quote from Rich Dad, Poor Dad
“Being Broke is temporary, but being poor is eternal”