“If somebody tries to look at the way fraud is being committed, ultimately the money is not recovered. Nobody knows where the money has gone.
“And even ED under Prevention of Money Laundering Act (PMLA), the recovery which they are doing in stolen assets is very meagre as compared to the money which is going out of the country, which is nothing but the illegal money,” Garg said suggesting the need to speed up the recovery of stolen assets by such bodies.
Garg said it is because of corruption through evasion of taxes that huge amount of money is going out of the country.
The CVC has been promoting and asking everyone to have risk management system and better internal controls to plug loopholes. “The supervisory system has really gone out of control. It is very lax. Then we have problem of regulation. The regulatory mechanism itself in the country today needs to be strengthened,” Garg said.
He said the country and its people need to attack the root cause of the frauds which is the change in the value system.
Besides, Garg said there is a need to check rising financial inequality among people.
“About 80 crore Indians live on less than USD two per day. This kind of inequality in the system is not only the responsibility of the governments, that is state government and central government, but it is the responsibility of all citizens and corporates. They have to play good roles....
“If you don't do that, let me caution you that you will find huge unrest in the country which you are already seeing (as to) what is happening in Middle East, African countries, South America and Europe, which we cannot afford in a democratic system,” he said.
Garg also appreciated big corporates like Reliance, Birla and Tata for generating employment opportunity in the country.
“Instead of exploiting each other, let us join each other for building this country and reducing its inequality gap,” he said seeking greater coordination among industrialists and public officials.
