Thanks to the associations with the Congress with family of Kamalayan Bajaj , Bajaj Auto Ltd (famous for HAMARA BAJAJ scooters) became the "Scooters King of India". Nobody else were permitted to put up a plant to compete with their nearly monopoly. At that time of the 'Licence Raj', a number of licenses were issued for joint sector projects with 26+ % stake in favour of a state industrial corporation to put up a small plant with yearly production of 25000 scooters. Maharastra Scooter got established in 1977-78 with WMDC becoming a 27% stakeholder and Bajaj being obliged to hold a just 24% stake to comply with the licence requirements.
Maharastra Scooters had best of business with peoples queing up to buy all the products just like any other manufacturers. They used to retain all the surplus (paying pittance to all shareholders which is an UNIVERSAL phenomena in India) and pile up a big portfolio of Bajaj Auto shares. As the scooters were out of fashion, the sole manufacturing were phased out in time.
The problem with Indian businessmen is that they never like to take "RETIREMENT" gracefully and so is the case of their enterprises. When an enterprises ceased to have business worth carrying on, it should be wind up and surplus being distributed. Colgate Palmolive (India), ICI India were fair in distributions of the surplus. Singh Brothers of the Ranbaxy fame had gracefully exited the business giving minor shareholders to exit thanks to open offer. And, most just love to cling the CASH FULL KITTY to their heart.
When a shareholder (with the backing of a STATE) with 27% stake can not force an equitable distribution of the accumulated wealth, one may imagine a status of a small shareholder. Neither the Parliament nor the GOI is expected to help us in such circumstances because the spell of the Captains (??) of the Industries/Business.
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