25 October 2012

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Rajat Gupta Trial and Verdict a lesson for Indian Judicial System

Rajat Gupta Trial and Verdict a lesson for Indian Judicial System

Rajat Gupta is an Indian American citizen famous in corporate world in USA and India as well.

On scholarship, Rajat Gupta went to America stayed there and in just 20 years of period, he became  the first ever India-born CEO, Chief Executive Officer  of a US international corporation.

Achievements of Rajat Gupta

board seats at Goldman Sachs and Procter and Gamble

co-founder of the Indian School of Business

adviser to the executive leadership of the Bill and Melinda Gates foundation advisor to United Nation

director of the AMR Corporation, the parent company of American Airlines

The Rockefeller Foundation appointed him a trustee

special adviser on management reform to then UN Secretary-General Kofi Annan

served on the UN Commission on the Private Sector and Development

co-chairman of the United Nations Association of America

But he made a mistake , he made a crime and  American Judicial system and FBI the agency that is no.1  in world and billions of  times more good than any Indian agency caught him.

October 26, 2011

Rajat Gupta  was slapped with insider trading charges on October 26 last year

A US court held Gupta guilty in June this year of providing insider information to Galleon hedge fund founder and friend Raj Rajaratnam, in one of America's biggest insider trading cases.

Rajaratnam had made an anonymous contribution of a million dollars to ISB and in 2006

Gupta and Rajaratnam served as founding partners of a private equity fund called New Silk Route.
Gupta became the Chairman of the fund with a large ownership stake.
The two became friends and occasionally had lunch together.

However, federal prosecutors, who had Rajaratnam on their radar, used wiretaps and listened in on telephone conversations between Gupta and Rajaratnam as the two talked about boardroom discussions.

July 29, 2008
 Telephone conversation between Gupta and Rajaratnam provides an "extraordinary window" into Gupta's state of mind and willingness to breach his duties to please Rajaratnam, prosecutors have said.

In the conversation, after being asked by Rajaratnam about a rumor concerning Goldman's strategic plans, Gupta "casually and without any hesitation or reservation" disclosed to Rajaratnam the deliberations of the Goldman board meetings.

Rajaratnam is currently serving an 11-year prison term for making millions of dollars in profits and avoiding large-scale losses  as he got confidential information he received.
The prosecutors played the telephone conversations between Gupta and Rajaratnam at Gupta's trial this year and presented incredulous evidence of frantic phone calls by him minutes after crucial board meetings.

The jury convicted Gupta of substantive securities fraud counts relating to his tip on September 23, 2008 regarding the USD 5 billion capital infusion by Berkshire Hathaway in Goldman and Gupta's tip on October 23, 2008 regarding Goldman Sachs's negative interim financial results.

Rajat Gupta was so big name you can see the list of names who came to support him and few demanded lesser punishment or community service as a punishment for him.

Who Supported  Rajat Gupta?

From former UN chief Kofi Annan, Nobel laureate Amartya Sen to Microsoft Co-founder Bill Gates, about 400 acquaintances, former colleagues and friends wrote to US District Judge Jed Rakoff detailing Gupta's philanthropic work, his otherwsie unblemished career and his track record of making significant contribution to charitable causes like AIDS/HIV, malaria and public health.

Now in this case what is important  you know that Rajat Gupta is a powerful individual

Now what is most important in this case is below

October 26, 2011   Rajat Gupta was slapped with a case

Rajat Gupta's trial began on May 21, 2012 .

On June 15, less than a month later, a jury found him guilty of conspiracy and three counts of insider trading.

On October 24, he was sentenced to a 24-month jail term and fined $5 million.

Now he got punishment

Now  if same case happens in India, do you think such a rich man will go to jail in India,

Satyam Case is still going on .

Bhopal Gas Case still not solved.

Salman Khan Case still going on

Sanjay Dutt Case still going on

Like this, it is same with each case

Satyam Case stared in 2009 Year

CJM court is hearing the case, once it will give verdict then case will go to

Sessions Court

Then appeal will be filed and case will go to High Court,

Then  appeal will be filed case will go to Supreme Court of India,

 Again, revision petition will be filed in Supreme Court of India

And result will come when majority accused will be very old or died

India is   a heaven for  criminals

Indian judiciary takes 23 years to grant a divorce  to couple.

Thus,  time has come to say  Indian Judicial system needs reforms , reforms that will give more powers to Supreme Court of India, not reforms suggest by politicians that  like CBI , Supreme Court should be controlled by them on the name of appointment of  judges.

Reality views by sm –

Thursday, October 25, 2012

Tags – Rajat Gupta Trial and Verdict


Saru Singhal October 25, 2012  

Our judicial system needs an overhaul and certainly lessons from US.

Vaanbhatt October 29, 2012  

we cann't believe such functioning of judicial system...