SME Times News Bureau | 05 Apr, 2014
The Supreme Court's recent direction asking Samsung Electronics chairman Lee Kun-hee to
appear before a Ghaziabad court in a cheating case is an "extreme
step" that would adversely impact investment and business climate, said Commerce
and Industry Minister Anand Sharma on Thursday.
"Samsung is one of the largest companies of Korea and
it has huge presence and investments in India...it sends a very negative
message and will definitely adversely impact the investment and business climate,"
Sharma is quoted by a news agency report.
"But the courts have to take a view. I feel that such
extreme steps will send shockwaves amongst the corporate world. That should be
avoided. The concerned authorities need to be very careful and exercise
caution," he added.
Earlier in the week, the Supreme Court asked Lee Kun-Hee,
chairman of South Korean electronics giant Samsung, to appear before a
Ghaziabad trial court within six weeks in connection with a USD 1.4 million
alleged cheating case.
An Indian company, JCE Consultancy, has alleged cheating by
Lee Kun-Hee for failure to honour contractual obligations.
The case concerns a coke calcination plant which Samsung had
ordered from JCE Consultancy in 2001. The Indian company had alleged that it
did not get any money even though it had complied with its contractual
obligations.
The South Korean electronics major had contended that it had already complied
with its contractual obligations by furnishing bank guarantee through an
intermediary for the entire amount.
A Supreme court bench had passed the order on an appeal
filed by Lee challenging the Allahabad High Court's order dismissing his plea
for setting aside arrest warrant issued against him.
The minister said companies function in an executive
hierarchical manner and their chairmen should not be summoned in case of
complaints. "This is my view...it sends a very negative message," he
added.
Meanwhile, B D Park, Managing Director, Samsung India and
and CEO of company's south-west Asia operations, met DIPP Secretary Amitabh
Kant. He was accompanied by Samsung India Deputy Managing Director Ravinder
Zutshi.