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Seven Denouement: The Final Abolition of Managing Agencies
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Published:August 2015
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Abstract
The report of the Commission on the Dalmia Jain Group caused uproar when it was discussed in the Lok Sabha in 1963. Although Ramkrishna Dalmia claimed that the practices followed by his group were no different to those employed by other big business groups, D.R. Gadgil felt that they extended beyond any normal instance of corporate crime. Sections of big business also felt that the managing agency system was leading to increasing public disaffection with the corporate sector. While taking steps to ensure that their group interests were not affected, they too began to support abolition of the system. Although British interests in jute attempted to stall the process, it was ultimately abolished in 1969. Its importance as a vehicle of operation for trade and moneylending capital is indicated by a dramatic change in the relative ranking of large business houses by the early 1980s.
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