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India is experiencing a governance crisis, highlighted by the grilling of Anil Ambani by the Enforcement Directorate over a ₹17,000 crore loan fraud and the failures of high-profile startups like Byju’s, BluSmart, and GoMechanic
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Anil Ambani, once a symbol of unchecked ambition, is now facing accountability after years of regulatory evasion, marking a turning point in corporate governance in India
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The Reliance ADA Group, post-2005, expanded rapidly but faced scrutiny over opaque fundraising and financial irregularities, leading to a crackdown by the ED in 2025
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The startup ecosystem in India is also under scrutiny, with companies like Byju’s and BluSmart facing allegations of financial misreporting and fund diversion, reflecting systemic governance issues
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Common governance failures include unchecked founder control, lack of board oversight, delayed audits, and undisclosed related-party transactions, posing risks to investors and the economy
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India’s regulatory framework is fragmented, with agencies like SEBI, MCA, RBI, and ED often acting without coordination, leading to reactive enforcement rather than proactive governance
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For India to achieve its goal of becoming a global innovation hub by 2047, it needs a unified governance code, mandatory independent directors for large startups, and real-time compliance tools
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Governance should be seen as the foundation of trust and resilience in India’s innovation economy, not merely a formality, to ensure sustainable growth and global credibility
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