This refers to the Editorial ‘False Independence’ (April 23). The siphon of loan funds by the company of the borrower its financial viability is not strange despite the many checks and balance oriented to technology imposed by regulators.
In addition to regulations, institutional lenders will have their rules that borrowers have to comply with.
However, the company’s promoters are deliberately violating thesis stipulations, as results of which investors are losing money. Retail investors are affected sausages. Independent directors do not detect such fraud and end up renouncing.
The internal and external audit is a proof of being ineffective. In the case of Gensol Engineering, all kinds of regulations, supervision and surveillance by several authorities have failed, and investors lost their capital. Sebi and RBI must carry out forensic audits and inspections and reserve the culprits to avoid such incidents in the future.
Vsk Pillai
CHANGANACHERRY (KERALA)
Trump-Powell Row
This refers to the article “Why Trump-Powell Tussle is dragging the dollar” (April 23).
While Trump is pressing for an interest rate cut, Fed Jerome Powell’s caution is informed by two factors.
First, the duration of the Pandemia, initial Powell called “transient” inflation and delayed action, a position that then reversed with an aggressive hardening. Second, tariff policy remains uncertain, despite Trump’s 90 -day break.
A return to the highest reciprocal rates could rekindle inflationary pressures.
With Inemployent at 4.2 percent and inflation of 2.4 percent Powell is adopting a “wait and observes” approach.
That said, it is essential to maintain the independence of the Fed and guarantee a coordinated but institutionally respectful policy response.
Velamur de Srinivasan
Chennai
Agricultural viability
APPROACES “AGRICULTURE NO VIABLE AS” (April 23). When the sale price of agricultural products is not set before its production, but is defined by the consumer market, the term ‘viable’ becomes hollow.
Unless farmers are properly encouraged (not simply subsidized) for their efforts, agriculture cannot become viable at any time in the future.
The fall in the contribution of GDP by the agricultural sector cannot be attributed only to viability, but several other strange factors that justify long -term planning.
Rajiv Magal
Village de Halekere (Karnataka)
Posted on April 23, 2025