This refers to the editorial "The Suzuki problem" (January 30). It is a case of gross misgovernance. Criticising Suzuki's action in peremptorily annexing a plant set up by Maruti, to its own 100 per cent owned subsidiary, does not go far enough. There is no economic justification for the move. It is a simple act of abusing its position in the market to appropriate to itself the entire manufacturing profits of the new plant. The proposal is so indefensible that the management is trying to justify it with the argument that the Indian shareholders will earn eight to nine per cent on the funds. We, the shareholders, have not entrusted our resources to Maruti's board of directors to earn nine per cent. We expect them to earn a much higher return, which they have done throughout. A special tax on such companies is not a solution. The taxation policy should not be used to correct the failure of the regulatory system.
Minoo Mody Mumbai
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