The Anvay Naik saga is the story of every small business in India.
Anvay Naik of Concorde Designs Pvt Ltd was owed ₹83L by Arnab Goswami of Republic, ₹4Cr Feroz Shaikh of IcastX/Skimedia and ₹55L Niteish Sarda of Smartworks.
He could not recover this amount and hence he and his mother committed suicide.
If I counted the number of times people have gotten away with not paying Thinvent, I'd easily run out of fingers and toes. We have had POs cancelled after the material is ready. We have had people steal our intellectual property and claim it to be theirs. A large company, or a politically well connected one, can easily eat a small one. Unscrupulous employees at large companies eagerly serve their masters by committing crime after crime.
All this means that a business has to be very cautious about manufacturing goods without an advance, or delivering them without full payment. The services industry has it even harder because things are done bespoke. Clients often start negotiating after the entire work is done, the attitude being of giving bakshish not fair dues.
All of this is solvable with a functional legal system. Which we don't have. So much for ease of doing business. This has a chilling effect on business in general. In any case we are a low trust economy where vendors and customers don't trust each other. On top of it when vendors are wary of extending credit, and the legal system doesn't work for buyer or seller, it leads to fewer transactions than are possible (or in operations research speak, a high set up cost for each transaction).
Naik did not receive justice or his payments while was alive. His family did not get justice after he committed suicide. The police conducted a shoddy investigation and closed the file. As luck would have it, one of the perpetrators has political enemies. So now justice will be done. A criminal justice system that works on luck. 🤦🏽♂️
Anvay Naik of Concorde Designs Pvt Ltd was owed ₹83L by Arnab Goswami of Republic, ₹4Cr Feroz Shaikh of IcastX/Skimedia and ₹55L Niteish Sarda of Smartworks.
He could not recover this amount and hence he and his mother committed suicide.
If I counted the number of times people have gotten away with not paying Thinvent, I'd easily run out of fingers and toes. We have had POs cancelled after the material is ready. We have had people steal our intellectual property and claim it to be theirs. A large company, or a politically well connected one, can easily eat a small one. Unscrupulous employees at large companies eagerly serve their masters by committing crime after crime.
All this means that a business has to be very cautious about manufacturing goods without an advance, or delivering them without full payment. The services industry has it even harder because things are done bespoke. Clients often start negotiating after the entire work is done, the attitude being of giving bakshish not fair dues.
All of this is solvable with a functional legal system. Which we don't have. So much for ease of doing business. This has a chilling effect on business in general. In any case we are a low trust economy where vendors and customers don't trust each other. On top of it when vendors are wary of extending credit, and the legal system doesn't work for buyer or seller, it leads to fewer transactions than are possible (or in operations research speak, a high set up cost for each transaction).
Naik did not receive justice or his payments while was alive. His family did not get justice after he committed suicide. The police conducted a shoddy investigation and closed the file. As luck would have it, one of the perpetrators has political enemies. So now justice will be done. A criminal justice system that works on luck. 🤦🏽♂️