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India offers help to Samsung chief

India's government says it will protect Samsung after the company's chairman was ordered to appear in a New Delhi court to answer fraud accusations.

India says it will help Samsung in "whatever way" it can to avoid the South Korean company's chairman being forced to appear in an Indian court over a payment dispute.

India fears its country's investment reputation could be further tarnished after the Supreme Court ordered Lee Kun-Hee, South Korea's richest man, to appear before a suburban New Delhi trial court within six weeks to answer fraud accusations over the $US1.4 million ($A1.5 million) dispute.

Government officials have been meeting senior executives of the consumer electronics firm to discuss how to ensure Lee does not have to appear personally in court, Amitabh Kant, industrial policy secretary, told AFP.

"Whatever way the government can help and protect Samsung we will be very happy to do," Kant said.

South Korea is a large investor in India through carmaker Hyundai, Samsung and other companies.

Kant called Samsung's dispute with New Delhi-based JCE Consultancy an "isolated case" and added the government is anxious to ensure the row does not "affect the investment climate in India in any way".

In a statement after the Supreme Court decision, Samsung said Lee had no connection with the case, which the company declared was related to a "multi-million dollar fraud" against a Samsung unit in Dubai.

Indian courts have a history of summoning top executives over alleged offences because of their overall responsibility for company operations.

But Kant said the Supreme Court decision allows the Samsung chairman to seek exemption from appearing in court and to allow a representative to appear instead.

The trial court had issued an arrest warrant against Lee for not appearing before it but the Supreme Court said the warrant would not be exercised for six weeks.


2 min read

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Source: AAP


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