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Fw: Re :Can any one plan this : Reply to Manjunath Somyaji : Ref :

Vinay 0315.
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Manju wrote on 15 Nov 98

Why should I? What business should the government have if I decide to
start a company? I'm tired of the government meddling in everything I
do. Why on earth should I have to submit them a report? What business
is it of the government and why should I give them any money other than
the taxes from my earnings? Any business I start is between the
customers and me and the government should not interfere. Only if I
breach a contract with the customer should the law step in - and in
that case, it would be the judiciary, not the legislative arm.

This interfering mentality in India is what is stifling us.

************************* Reply Separator.

(Against my wish, this is reply has become very long. So, have patience 
till you reach the end.)

The way you state things is a bit naive.

When Arvind started this topic, he did not make it clear under what head 
the Govt. wanted 2 crores so I myself am not sure about it but it is 
possible that the Govt. wants this as a  "licensing fee".

I am living in Thailand which follows American model. Here the fee would 
have been, in all probability, much higher. The licensing fee for 
opening a Stock brokerage business here is Baht 30 crores i.e. US$ 25 
millions.(Pre-devaluation figures.)

This ISP business is a special case in which the local operator has to 
get into agreement with the provider of "link" to internet and so has to 
pay money to them in, I think, hard currency. Not being familiar with 
the scene in India, I am unable to say whether the Govt "guarantees"
this  as part of the "licensing process."

BUT, in a general sense, to say that anyone should be free to start any 
business is to ignore the nature of Company. A Company is a Juristic 
Person with rights & liabilities of its own which separates it from the 
operators (except in the case of Proprietory companies). In short, what 
is not possible for individuals to achieve is made possible by forming a 

For example, an individual may not be able to raise capital in the 
market but a Company can do so in the form of certificates of deposits, 
by issue of bonds etc. Another more insidious form could be to raise 
money by the grant of  "incentives" to its customers, say, by offering 
25% discount for its services if the customers pays for it in advance. 
In this way a huge sum can be raised . EXAMPLE : Mr.Arvind said, he
would charge Rs 100 per month for his services. Ten thousand 
customers(0.1 % of Bombay population or 1 family in 250 paying Rs.75 for 
each month for one year in advance would put 90 lakhs ( 9 million) in 
the hands of a company. What happens if due to circumstances beyond the 
control of company-board, such as natural calamity, loss of key persons 
who had the intial vision, legal cases brought in by competitors etc, 
the company is not able to deliver the services ? Do you expect the
10,000 customers to file cases for the recovery of the money paid by
them ? No one in India would do that as the cost of initiating 
proceedings would amount to more than the Rs.900 at risk. So should the 
company be allowed to simply get away with it ? There are many similar 
reasons why restrictions are placed on opening companies of different 
nature. An assurance of  sound financial background weeds out fly by 
night operators.

Report - submitting was "suggested" as a "short-cut" proof of viability 
/ feasibility / desirability of the company.

TAXES:  As you say, if  every person liable to taxation, paid his dues
honestly, all financial problems of our Govt would disappear overnight !

Your statements regarding "......Between the CUSTOMER &  Me " --- As 
stated above, this can not be done to safeguard the customers especially
as the law as formed in Western culture is "blind" and has to be 
"advised" by lawyers. The legal system is too expensive for small
operators and open to subversion : justice delayed is justice denied. 
The judiciary is guided by policies arrived at by legislative arm.

What you see as interfering mentality means safeguards for all, 
including other  business entities. HOW ? To extend the above example, 
let us say, a big corporation hires internet time from a new company 
started (above example).  It does this by allotting a certain budget to 
this item. The ceasing of operation by this Internet services company or 
declaration of Bankruptcy (allowed under the law or going in for 
restructuring under some form of Chapter 11 proceedings as in US )could 
seriously affect or disrupt  the plans of operation of  the client 
corporation. So what should this corporation do ? Should it sue the ISP
for breach of contract and loss of profits ? (Heaven-sent opportunity 
for lawyers !) Following this route gives rise to more and bigger 

In the business-world things are never simple. Murphy's Law says," If =
anything can go wrong, it  Will". So for the safety  of all, some =
controls are preferable - Like your sweet Mom never allowed you to Steal =
milk from your Sister's bowl although you may have harboured such =
intentions "emboldened" by being bigger than her and sure of being able =
to beat her up in a "combat".

(Please, do not take me to court for the above statement ) - your sister =
would be my sister too, if you do not have Very Strong Objections, and I =
simply want to ensure a "dominance-free" life for her. You too wish to =
safeguard the Rights of Women, don't you ? Let us substitute the words, =
"the weak" in place of  "women" and you will get to what  I mean in the =
broader context.

Let us NOT  have this mentality that we are being stifled : the weaker =
ones are being protected.

 A liitle later, I am going to quote a few words from a lecture given by =
 Dr. A P J Abdul Kalam,  who is the chief scientist behind our Nuclear =
programme and whose biography, "Wings of Fire" is coming out shortly   =
which seem to literally Lift all the Indians on Wings of Fire,  wings of =
Sacred fire.

I admit that there are problems but in 50 years we have come a long way. =
You are the Son of a Great country  which has offerred shelter to hordes =
of foreign invaders for centuries; where the proud Rajputs had the =
tradition of offerring protection to anyone who sought it.  Do not deny =
protection to your own brethren who may be unfortunate to be born poor =
whether you see him as a Customer or Begger. 

Excerpts from Wings of Fire - ( Courtesy of Suryadevara Madhusudana Rao =

 "My second vision for India is DEVELOPMENT. For fifty years we have  =
been a developing nation. It is time we see ourselves as a developed  =
nation. We are among top 5 nations of the world in terms of GDP. We have =
 10  percent growth rate in most areas.  Our poverty levels are falling, =
 our achievements are being globally recognized today. Yet we lack the =
self-confidence to see ourselves as a developed nation, self reliant  =
and self assured. Isn't this right? "

>>>>>>>> MY COMMENTS TO YOU : Please have patience - we are doing well =
enough in spite of all the corruption. A little while more - may be 5 =
years - and we will Become a Superpower without transplanting the =
cancerous American system.

EXCERPTS : (developed in India)....."  material called carbon-carbon.
  One day an orthopedic surgeon from Nizam Institute of Medical Sciences =
visited my laboratory. He lifted the material and found it so  light =
that he took me to his hospital and showed me his patients. There were =
these little girls and boys with heavy metallic calipers  weighing  over =
three Kgs. each, dragging their feet around. He said to me:  Please =
remove the pain of my patients. In three weeks, we made these - Floor  =
reaction Orthosis 300 gram calipers and took them to the orthopedic  =
center. The children didn't believe their eyes. From dragging around a  =
three kg. load on their legs, they could now move around! Their  parents =
had tears in their eyes. That was my forth bliss! "

MY COMMENTS : I want all those handicapped children to have these. If it =
is left to some private enterprisers, they will charge every penny the =
parents can afford (and they will sacrifice all to ease the pain of =
their children) and indulge in profiteering.

Manju, in spite of your tough exterior, if you pay a visit to these =
children, you will change too when you see  the pathos of thier life and =
may be you will opt to take up unpaid volunteer work. That is why I say, =
For Now, Make Money in America, but GIVE YOURSELF A CHANCE TO BECOME A =
HUMAN BEING instead of remaining a profit-monger forever.

EXCERPTS ;  "Why is the media here so negative? Why are we in India so =
embarrassed   to recognize our own strengths, our achievements? We are =
such a great nation. We have so many amazing success stories but we =
refuse to   acknowledge them. Why? We are the second largest producer of =
wheat in the world. We are the second largest producers in rice. We are =
the   first in milk production. We are number one in Remote sensing =

>>>>>>>>>>>>>>MY COMMENTS : Coming from APJ Abdul Kalam, this should =
convince you that we are catching up.To achieve greater progress, we have
to keep at it a little longer. No =
matter the corruption, I do not condone it, I am against it. But what I =
say is do not get distracted from the primary goal of "happiness for =
all" in the name of free markets and free enterprise.

EXCERPTS ;   "  Another question: Why are we, as a nation so obsessed =
with foreign   things? we want foreign TVs, we want foreign shirts. We =
want foreign   technology. Why this obsession with everything imported? =
Do we not   realize that self-respect comes with self-reliance?   I was =
in Hyderabad giving this lecture, when a 14 year old girl asked   me for =
my autograph. I asked her what her goal in life is: She replied: I   =
want to live in a developed India. For her, you and I will have to   =
built this developed India. You must proclaim."

I ASK YOU : What are you going to do for that girl ? What sacrifices are =
you prepared to make ? Or will you run away with her milk ?


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