Ethical Dilemmas faced by the company in the past or present:

As per the Torrent power limited v/s Gujarat electricity regulatory commission case, we can
say that paying taxes to the Government is a must. The top-most unethical practice that most
of the companies are accused some time or later is the practice of sabotaging the books of
accounts for either tax evasion or increasing the profits by wrong means. There always lies an
ethical dilemma of paying taxes to the government for the welfare of the society or using the
money saved by tax evasion in the growth of the company. Well, the ethical dilemma is
whether to work for the betterment of the whole society which lets you do your business in
the first place and which should be one of your moral duties or illicitly evade the taxes for the
betterment of only your company.

Here, in the second case, Torrent Power Ltd. was supposed to have only around 7000 tons of
coal, whereas at that time they were possessing around 9000 tons of coal. When the custom
duty department was not allowed by Torrent Power Ltd. to carry out their inquiries, the
matter was handed over to the court. Here, the judgement came that the custom duties
department should be allowed to carry out further investigations. This shows us that there
would be some fault or some doubt at the part of Torrent Power Ltd. and only then would the
court allow the custom duties department to carry investigations. Now the ethical dilemma
here is, is it fine to possess the illicit amount of coal, which is a rare resource and indulging in
such activities.

For these ethical dilemmas mentioned above, we should carry out the three-step check list:

The Case Is it illegal? Does it violate any Does it affect any

professional
people?
standards?
Torrent power limited v/s Yes Yes Yes
Gujarat electricity regulatory
commission

Torrent power ltd. v/s Union of Yes* Yes* No

India

Torrent power ltd. v/s Mahendra No No Yes*

Singh