Digging a well when thirsty

 The DHFL issue is, as I noted in an earlier blog, rather tricky, and quite tragic. Many investors, lured by the high returns, have invested their lifetime savings. On groups already existing, or on groups newly being formed, tragic tales of huge amounts, to the tune of thirty lakhs, and/or more, being invested, with only 23% principal being returned so far, are making regular and frequent appearances.

The sense of urgency  for a definitive solution by such investors being revealed NOW is understandable undoubtedly. But it is quite misplaced, too. Why did they put all the eggs in one basket? Why did they not diversify such huge amounts in different bonds/securities/shares? Why do not they question the financial advisors who misguided them so badly?

 If all had gone well with the DHFL, these very investors with such huge investments (surely, a person who can invest so much at a go would have alternative income generation sources?!?) would be rolling in the mollah, what with the principal and the interest.

 Would they have then much cared for the plight of any other group, say the labour from the unorganised sector? Very little chance! Now that they are  at the receiving end, the huge outcry without much patience and with rather melodramatic breast beating sounds rather peurile as answers to such knotty issues would not emerge overnight.

Funnier still is the attempt to take credit, to hog the whole limelight while hectoring others, while subtly playing the 'pass the buck' games. Hence it now sounds like "digging a well".

Actually the RBI grants up to ten lakhs of the account holder's money if any bank goes bust, faces similar issues. There must be a set of similar or parallel rules in place for DHFL kind of companies as well. Through the media and through the united efforts of all the investors, a solution would emerge as the government would thus be pressurised to solve the issue.

 I do think in the current budget session, there was some talk/mention of such a possibility. Need to study it. Takes time, right? Hope people would understand such  subtleties, despite their distress! Hope the government helps out this time in returning at least the principal of everybody, and designs strong measures to avoid any such anamolies in the future.

Pratima@why dig  a well, when thirsty?!?