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Upcoming revisions of law will reduce corruption: Moily

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BS Reporter Chennai
Last Updated : Jan 20 2013 | 2:34 AM IST

The upcoming winter session in the Parliament will be crucial for Indian Inc as three important bills, including the amended Company Law Bill and competition policy, are to tabled.

The other important policy on public procurement bring down corruption by 50 per cent would also be tabled during the session, said Corporate Affairs minister M Veerappa Moily.

Speaking on the sidelines of Yuvonmesha-2011, a students festival organised by the Institute of Cost and Works Accountants of India, the minister said the ministry was planning to take several steps including bringing out a new set of policies and laws for the corporate sector.

“We have to restore our credibility, which was hit by recent scams and scandals, among investors,” he said.

The present company law is outdated, the new company law of 2011 will respond to new challenges. The Bill has already gone to the Cabinet and will be tabled in the Parliament by December 2011. “It will have a proper system and mechanism which will prohibit corruption and there will be lot of accountability and transparency,” said the minister.

This would be followed by the competition policy, which is expected to be finalised in November 2011, and by December 2012, it will become a law.

“Once this comes into effect, at any point, inflation will not go beyond 4-5 per cent and GDP will witness another four per cent growth,” Moily said.

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The ministry was also working on a national corporate governance policy and may come out with national corporate governance policy in six months, according to the minister.

The other important measure would be the public procurement policy and a law. At present, the government procure materials worth Rs 11 lakh crore, but there is no proper policy. “With this 50 per cent of corruption will end,” said the minister.

On the merger or amalgamation cases, Moily said at present even the cases go on for 10-15 years. “We want to make sure this will not go beyond one year”.

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First Published: Sep 22 2011 | 12:22 AM IST

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