India Inc has poor record in regulatory compliance

India Inc fare poorly in regulatory compliance, with average conformity being at merely about 65%, said a domestic legal support services firm. Suhas Tuljapurkar, founder director of Legasis Services, out of 220 companies his firm tracked, merely around 25-30 companies or 16% are fully compliant on main parameters like labour laws, environmental issues and key regulatory issues in the country. 

The average conformity level is merely 60% to 65%, he told PTI here, adding the 220 firms include all sectors, except banking and financial services and aviation. As many as 160 of these companies are listed as well, he said, adding 30-35% are not compliant at all. Incorporated by professional lawyers in 2006, the Legasis focuses on fusion of lawyering and information technology, he said.

Tuljapurkar claimed that his company is way ahead of the Big Four (EY, PwC, KPMG and Deloitte) in market share in the country with over 70% of the market. On the revenue side he said he collects a one-time fee, which varies from the kind of service and 20% of one-time fee in subsequent years. Legasis employs 120 lawyers 15 IT engineers and is profitable, he said.

Explaining the reason for low compliance level he said the main reason is lack of awareness, and most non-conformity happens on the labour and environmental laws.