NEW DELHI: A rise in the number of corporate frauds poses serious challenges to corporate governance laws, Union minister Anurag Singh Thakur said on Friday even as he emphasised that wealth creators need to be respected.
The Minister of State for Corporate Affairs and Finance also said the government is determined to provide best services to its citizens as well as investors and bring India into the list of world's top twenty countries in terms of ease of doing business.
"In the present scenario, our economy is witnessing a rise in the number of corporate frauds, which include wilful defaulters and is having an adverse impact on the capital formation and resulting into draining of capital.
It poses serious challenges to corporate governance laws," Thakur said.
He was speaking at a function of the Indian Corporate Law Service (ICLS) Academy.
The minister said there are a lot of challenges that businessmen in the country face while complying with various regulatory requirements and a lot needs to be done in this direction.
"Wealth creators need to be respected," he added.
About making a USD 5 trillion economy, Thakur said that officers must work towards effective implementation of government policies.
"In 2014, we were a USD 1.8 trillion economy and we became a USD 3 trillion economy in just five-and-a-half years. If we could do that, we can achieve USD 5 trillion. All we need to do is be positive in our approach," he said.
For India to become a USD 5 trillion economy, Corporate Affairs Secretary Injeti Srinivas said the corporate sector has to be the engine of growth and work should be done in the facilitation, regulation and ensuring compliance.