'Rajat Gupta hasn't really lost the trust'

The Silicon Valley people, who knew former McKinsey chief Rajat Gupta, reacting to the two-year jail term imposed on him for insider trading, said what happened is a tragedy, horrible and sad, but also feels Gupta will be back.

Kanwal Rekhi, managing director Inventus Capital in California, told rediff.com over the phone, "He has not lost everything and he is a trader and will remain so." 

"This one mistake does not make much difference. Yes, it is sad and tragic, but he has not lost the trust. Not really", he added.

Rekhi said he had met Gupta in New York in July, though did not disclose further.

Gupta was a role model, he said.

. . .

He had done a wonderful job in life.

Talking about the two years jail term and a fine of $5 million, Rekhi said, "I wish it was for six months because the next two years will be very harsh for him.

"Money does not matter but the time spent in jail matters."

Another siliconeer (silicon valley people), who had worked with Gupta said he was somewhat relieved to hear a lighter sentence.

"Two years will fly and Rajat will be back with vigour," said Narpat Bhandari, co-founder of TiE Silicon Valley in California, CEO and Country Director, Global School.

Bhandari said they together invested in companies as an angel investor.

"I just feel so much for the community."

. . .

"It's just too bad and horrible.

Sometimes human greed of which I have no knowledge, leads to this.

But I am sure he must have got trapped into that and he has done something that is not so right.

"That is why he got into this trouble,"said Bhandari.

But on personal terms, Gupta is of helpful nature.

"I thought he was extremely good at what he did at McKinsey. We flew to Chicago when he was head of Chicago McKinsey to get a TiE Chapter there.

"He did a very good job and worked for us and helped us open the TiE Chapter in Chicago in 1996-97," Bhandari told rediff.com.

. . .

He said that in 2003, they both were invited on Federation of Indian Chambers of Commerce and Industry board to India.

"I have met him several times while dealing with startups in the Valley and I have a high regard for that guy," said Bhandari.

"We do not know what went behind but my experience with him says that he was very presentable, articulate and down- to-earth."

"It's unfortunate he got trapped into some situation," said Bhandari.

. . .

"I really liked him, I thought he had good qualities and he was doing a lot for the community. So that part of his life we really enjoyed.

"We always thought that he had that giving ability to the community. Just like we all did in TiE Silicon Vally. People did not believe in when we started in 1993 but he did," said Bhandari.

He said, "I still remember his visit to the Silicon Valley a few years ago, when he opened Hyderabad's Indian School of Business. Vinod Khosla, co-founder Sun Microsystems had hosted fundraising for him.

"My experience with him was quite good. He was very approachable and very polished in a good way."