Loot of Reserve Bank
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Working For The Rights & Survival Of The Oppressed
Editor: NAGARAJA.M.R… VOL.10 issue.07…… .17/02/2016
PIL – Stop Robberies @ RBI by bank staff
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R
editor SOS e Clarion of Dalit & SOS e Voice for Justice
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
Honourable Governor , Reserve Bank of India (RBI) & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the
Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
"Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for
power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt public servants.
2. Eventhough , I have repeatedly appealed to RBI authorities since years seeking justice regarding illegalities , irregularities in recruitment , currency handling , currency theft , etc @ RBI , they didn’t provide justice at all.
3. For a common man it is a herculean task to get Rs.5000 loan from a bank , but rich & connected get lakhs , crores of rupees loan quite easily from banks , how ?
4. When a common man , farmer defaults to pay loan of few thousands of rupees bank immediately dispatches loan recovery agents / Rowdies , seizes his property & auctions and recover their dues to last penny. Farmers are committing suicide unable to pay loans to escape from ignominy .
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R
editor SOS e Clarion of Dalit & SOS e Voice for Justice
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
Honourable Governor , Reserve Bank of India (RBI) & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the
Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
"Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for
power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt public servants.
2. Eventhough , I have repeatedly appealed to RBI authorities since years seeking justice regarding illegalities , irregularities in recruitment , currency handling , currency theft , etc @ RBI , they didn’t provide justice at all.
3. For a common man it is a herculean task to get Rs.5000 loan from a bank , but rich & connected get lakhs , crores of rupees loan quite easily from banks , how ?
4. When a common man , farmer defaults to pay loan of few thousands of rupees bank immediately dispatches loan recovery agents / Rowdies , seizes his property & auctions and recover their dues to last penny. Farmers are committing suicide unable to pay loans to escape from ignominy .
5. Huge companies get crores of rupees loan from banks eventhough basically the project report itself is at fault , not viable. Siphons off company resources by insider trading to their sister concerns although bank representatives are very much their on the board of companies.
6 . Such companies default on loan dues to bank , but no recovery agents / rowdies are sent by banks. Finally the company becomes bust.
7. Bank looses money , the company is declared as NON PERFORMING ASSET and government + bank waives off interest or else loan itself.
8. End looser the public whose money went down the drain , profiteers – company promoters , executives and bank manager. No recovery from their personal , family properties why ?
2. Question(s) of Law:
2. Question(s) of Law:
Is it right for banks , government to let out fraudsters without criminal prosecution ?
3. Grounds:
Requests for equitable justice , Prosecution of master minds of financial frauds.
4. Averment:
Covering up Financial Frauds. Please read details at :
3. Grounds:
Requests for equitable justice , Prosecution of master minds of financial frauds.
4. Averment:
Covering up Financial Frauds. Please read details at :
https://evoiceofhumanrightswatch.wordpress.com/2015/07/19/rbi-robberers-bureau-of-india/ ,
Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
The Petitioner has sent many letters / appeals / petitions to supreme court of india & other courts through e-mail , DARPG website & through regular mail requesting them to consider those as PILs. But none ofthem were admitted , even acknowledgement for receipts were not given. See How duty conscious ,our judges are & see how our judges are sensitive towards life , liberty of citizens , commonmen & see howcareless our judges are towards anti national crimes , crimes worth crores of rupees. That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
The Petitioner has sent many letters / appeals / petitions to supreme court of india & other courts through e-mail , DARPG website & through regular mail requesting them to consider those as PILs. But none ofthem were admitted , even acknowledgement for receipts were not given. See How duty conscious ,our judges are & see how our judges are sensitive towards life , liberty of citizens , commonmen & see howcareless our judges are towards anti national crimes , crimes worth crores of rupees. That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
a . Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants , RBI authorities in the following cases to perform their duties & to answer the questions.
b . to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
c. To legally prosecute authorities of M/s RBI & M/s BRBNMPL , who denied job opportunities to me under the behest of criminals responsible for late PM Rajiv Gandhi assassination case.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Kindly read full details at following web page :
https://sites.google.com/site/sosevoiceforjustice/rbi---robberer-s-bureau-of-india ,
Dated : 23rd July 2015 ………………….FILED BY: NAGARAJA.M.R.
Place : Mysuru , India…………………….PETITIONER-IN-PERSON
ICICI Bank:True to its Motto, Khayal Aapka, ICICI Welcomes Tainted Money to Make It Clean
By Cobra Post
A countrywide undercover investigation by Cobrapost finds ICICI Bank committing gross violations of the Income Tax Act, FEMA, RBI regulations and the anti-Money Laundering Act. These activities render the vast assets it manages, the deposits it maintains, the profits it makes, and the spectacular growth it has registered, suspect.
It was an innocuous visit by a journalist to the bank. The proposition was not innocuous: A politician wants to invest a huge amount of money to make it “white.” Would ICICI Bank officials help?
A six-month long undercover investigation by Cobrapost, codenamed Operation Red Spider, found almost all officials of ICICI Bank bending over backwards to help sequester black money and make it white. Bankers in scores of ICICI branches, spread across the states of Rajasthan, Haryana, UT Chandigarh, Delhi, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra were willing to help the Cobrapost reporter (posing as a relative of a fictitious politician) launder huge sums of ill-gotten money.
Living up to its Khayaal Aapka (We care for you) motto, almost all the officials of ICICI Bank, caught on camera, welcomed Associate Editor Syed Masroor Hasan. They suggested innumerable ways to convert black money into white: invest the black money in insurance, split the money in smaller chunks to avoid attention, open multiple accounts to make multiple invstments in different names, withdraw money after maturity and close the accounts. All this would serve the purpose of making the money legitimate without the Income Tax Department knowing.
The modus operandi the ICICI Bank officials suggested overall can be summarized as follows:
A six-month long undercover investigation by Cobrapost, codenamed Operation Red Spider, found almost all officials of ICICI Bank bending over backwards to help sequester black money and make it white. Bankers in scores of ICICI branches, spread across the states of Rajasthan, Haryana, UT Chandigarh, Delhi, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra were willing to help the Cobrapost reporter (posing as a relative of a fictitious politician) launder huge sums of ill-gotten money.
Living up to its Khayaal Aapka (We care for you) motto, almost all the officials of ICICI Bank, caught on camera, welcomed Associate Editor Syed Masroor Hasan. They suggested innumerable ways to convert black money into white: invest the black money in insurance, split the money in smaller chunks to avoid attention, open multiple accounts to make multiple invstments in different names, withdraw money after maturity and close the accounts. All this would serve the purpose of making the money legitimate without the Income Tax Department knowing.
The modus operandi the ICICI Bank officials suggested overall can be summarized as follows:
* Open an account to route the cash into the Bank’s menu of insurance products.
* Do it even without the mandatory PAN card.
* Split the money to invest in a diversified portfolio including gold.
* Invest in multiple instruments in the names of different individuals, not necessarily from among the family, to facilitate the investment of black money.
* Use dummy accounts to faceplate the conversion of black money.
* Get demand drafts made for the client either from their own bank or from other banks to facilitate investment without it showing up in the client’s account.
* Allot lockers for the safekeeping of the illegitimate cash.
* Personally come to the residence of the client to take the black money deal forward.
* Make a suitable profile for the client, such as showing him as an agriculturist or engaged in some businesses, so as to make the investment unquestionable.
* Help the client to transfer black money abroad either through NRE (Non-Resident External)/NRO (Non-Resident Ordinary) accounts or through means other than regular banking procedures.
* Do it even without the mandatory PAN card.
* Split the money to invest in a diversified portfolio including gold.
* Invest in multiple instruments in the names of different individuals, not necessarily from among the family, to facilitate the investment of black money.
* Use dummy accounts to faceplate the conversion of black money.
* Get demand drafts made for the client either from their own bank or from other banks to facilitate investment without it showing up in the client’s account.
* Allot lockers for the safekeeping of the illegitimate cash.
* Personally come to the residence of the client to take the black money deal forward.
* Make a suitable profile for the client, such as showing him as an agriculturist or engaged in some businesses, so as to make the investment unquestionable.
* Help the client to transfer black money abroad either through NRE (Non-Resident External)/NRO (Non-Resident Ordinary) accounts or through means other than regular banking procedures.
Helping such bankers and insurers are certain loopholes in the system, such as Section 10-10 (D) and the provision of scrutiny of investments up to a period of 7 years, which are being used to clean customers’ money. But the Anti-Money Laundering Act clearly stipulates that any dubious transactions should be reported to the regulatory authorities and their records preserved for a period of 10 years.
Such was their eagerness to help that one ICICI Bank official who fell hook line and sinker for the fictitious story sold to him by the Cobrapost reporter, went about looking for ‘Vandana’, the invented wife of the invented politician and for the ‘Peeli Kothi’ in Noida, their fictitious home. As one official claimed: “Aisa hai Hindustan mein aisa nahin hai ki koi vyavastha na ho (In Hindustan, there is nothing which cannot be arranged).” Said another official: “Nahin toh kuch na kuch jugaad karte hain aapke liye (Otherwise, we will make some jugaad for you).” When asked if he could do it using some dummy accounts, yet another official offered: “Theek hai ghumate hain … ghoomega idhar se hi ghoomega (Alright, I will manipulate. It will be manipulated from here only).”
Since the start of its operations in 1994, ICICI Bank has emerged as the second largest bank in India, after SBI, with 2900 branches, a presence in 19 countries, and interests in life and general insurance, securities, and venture and asset management, among others. According to the information available on its websites, managing assets worth Rs. 4736.47 billion, the bank earned a profit of Rs. 64.65 billion in the fiscal year ending March 2012, a 20.3 per cent jump over the precious fiscal. What ICICI Bank has achieved in 19 years is phenomenal growth.
However, the revelations made by bank officials during Operation Red Spider raise questions about the bank’s methods, the culpability of the top brass in money laundering, and the failure of the regulatory authorities to monitor their activities.
Such was their eagerness to help that one ICICI Bank official who fell hook line and sinker for the fictitious story sold to him by the Cobrapost reporter, went about looking for ‘Vandana’, the invented wife of the invented politician and for the ‘Peeli Kothi’ in Noida, their fictitious home. As one official claimed: “Aisa hai Hindustan mein aisa nahin hai ki koi vyavastha na ho (In Hindustan, there is nothing which cannot be arranged).” Said another official: “Nahin toh kuch na kuch jugaad karte hain aapke liye (Otherwise, we will make some jugaad for you).” When asked if he could do it using some dummy accounts, yet another official offered: “Theek hai ghumate hain … ghoomega idhar se hi ghoomega (Alright, I will manipulate. It will be manipulated from here only).”
Since the start of its operations in 1994, ICICI Bank has emerged as the second largest bank in India, after SBI, with 2900 branches, a presence in 19 countries, and interests in life and general insurance, securities, and venture and asset management, among others. According to the information available on its websites, managing assets worth Rs. 4736.47 billion, the bank earned a profit of Rs. 64.65 billion in the fiscal year ending March 2012, a 20.3 per cent jump over the precious fiscal. What ICICI Bank has achieved in 19 years is phenomenal growth.
However, the revelations made by bank officials during Operation Red Spider raise questions about the bank’s methods, the culpability of the top brass in money laundering, and the failure of the regulatory authorities to monitor their activities.
HDFC Bank: Bank on Us to Make Black Money White
By Cobra Post
A nationwide, undercover investigation across dozens of branches by Cobrapost reveals HDFC Bank is involved in extensive money laundering. The bank is blatantly violating various sections of the Income Tax Act, FEMA, RBI regulations and the Anti-Money Laundering Act, making the legitimacy of its deposits and its phenomenal profits and growth suspect.
It was a simple visit by a journalist, posing as a frontman of a politician, to the bank. So was its stated purpose: A huge amount of black money of the politician was to be invested with the bank. Would the officials help make it white? The rider: Under no circumstances should the politician be identified.
A six-month long undercover investigation by Cobrapost, codenamed Operation Red Spider, found dozens of officials of HDFC Bank, one of the oldest and most prestigious private banks in India, willing to help convert black money into “white”. Bankers across dozens of branches spread across the states of Rajasthan, Haryana, Delhi, Uttar Pradesh, West Bengal, Tamil Nadu and Karnataka, were willing to help our reporter (posing as a frontman for an imaginary politician) launder huge sums of illegitimate cash.
At almost all branches, the Cobrapost journalist got a red carpet welcome, with officials going out of way to suggest myriad ways of converting the black money into white, with the Income Tax Department never coming to know about it: invest the black money in insurance and gold; split the money in smaller lots to avoid attention; open multiple accounts with the bank and withdraw the money after maturity. Almost all the officials claimed they were old hands in helping customers turn black money into white.
Cumulatively, the modus operandi suggested by HDFC Bank officials to help launder a huge sum of the imaginary politician’s black money (source obviously criminal) was
* accept cash and invest it in the Bank’s menu of insurance products and gold;
* do it even without PAN card;
* keep the identity of the client secret;
* help the client to transfer black money abroad through remittance using “legal” methods;
* transfer the money telegraphically;
* open multiple accounts and close them at will to facilitate the investment of black money and withdrawal;
* get Demand Drafts made for the client from their own bank and other banks;
* allot lockers to the client to ensure the safe keeping for their illegitimate, scam-tainted cash;
personally collect the cash from the politician’s house.
* do it even without PAN card;
* keep the identity of the client secret;
* help the client to transfer black money abroad through remittance using “legal” methods;
* transfer the money telegraphically;
* open multiple accounts and close them at will to facilitate the investment of black money and withdrawal;
* get Demand Drafts made for the client from their own bank and other banks;
* allot lockers to the client to ensure the safe keeping for their illegitimate, scam-tainted cash;
personally collect the cash from the politician’s house.
All these acts constitute violations under various sections of the Income Tax Act, FEMA, RBI regulation and the Prevention of Money Laundering Act (PMLA) of 2002 which was promulgated to prevent the flow of money to groups or individuals who are a threat to the Indian state, its economy and social fabric.
Coming in handy for such acts are certain provisions, such as Section 10-10(D), which bankers and insurers use to help their customers to launder money. HDFC officials were so confident that they threw discretion to the winds while talking business with potential customers. As one official claimed: “HDFC baitha hi hua hai black money khane ke liye (HDFC has been set up to eat up all the black money).”
HDFC Bank began operations in 1995. In the 17 years of its existence, the bank has emerged as one the leading financial institutions in the private sector with interests in securities, mutual funds, realty, life insurance and financial services. According to information available on its websites, its deposits totaled Rs. 246,706 crore as of March, 2012. The bank has registered a more than threefold increase in its net profits – from Rs. 1590.12 crore in the fiscal ending March 2008 to Rs. 5164.96 crore in the fiscal ending March 2012. However, the information unearthed by Operation Red Spider throws doubt on the legitimacy of this growth story because it points to an illegitimacy of its deposits and therefore profits. In an ideal world where banks followed regulation and where regulators did their jobs, the story would have been different.
Coming in handy for such acts are certain provisions, such as Section 10-10(D), which bankers and insurers use to help their customers to launder money. HDFC officials were so confident that they threw discretion to the winds while talking business with potential customers. As one official claimed: “HDFC baitha hi hua hai black money khane ke liye (HDFC has been set up to eat up all the black money).”
HDFC Bank began operations in 1995. In the 17 years of its existence, the bank has emerged as one the leading financial institutions in the private sector with interests in securities, mutual funds, realty, life insurance and financial services. According to information available on its websites, its deposits totaled Rs. 246,706 crore as of March, 2012. The bank has registered a more than threefold increase in its net profits – from Rs. 1590.12 crore in the fiscal ending March 2008 to Rs. 5164.96 crore in the fiscal ending March 2012. However, the information unearthed by Operation Red Spider throws doubt on the legitimacy of this growth story because it points to an illegitimacy of its deposits and therefore profits. In an ideal world where banks followed regulation and where regulators did their jobs, the story would have been different.
True to its dictum, We Know Your World, nobody knows the world of black money better than HDFC.
Listed below are the encounters Associate Editor Syed Masroor Hasan had in different HDFC branches:
Top 10 Financial Scams in India
- Siddharth Singh
Financial scams have a habit of cropping up with an alarming regularity in the Indian financial system. We have reconciled to financial irregularities to such an extent that we simply do not pay heed to smaller scams that take place around us on a daily basis. I am, or rather was, a part of the financial machinery for a few years, and trust me, even the private sector is not entirely free of the machinations of unscrupulous and enterprising scamsters. The scope of the money involved multiplies manifold in the public sector, with a corresponding drop in accountability.
Financial Scamsters Are Rarely Punished
Despite a plethora of scams that surround us on a daily basis, frequently scams of large proportions come to light, and manage to stun even our jaded sensibilities. Then, there is the usual round of allegations, counter-allegations, enquiries and legislation. Some of our most notable regulations and financial institutions are the results of such scams.
I have compiled a list of ten leading financial scams in India, which have affected a large population of investors, and involved huge sums of money. They managed to shake the very foundations of our financial system, and were driven by that most basest of human instincts – GREED. In most cases, it was the greed of just one individual, or a very small group of individuals, who managed to pull of such huge scandals.
Insurance Scam – This scam had originated and prospered in the period immediately following Independence in 1947. At that time, the insurance sector was not nationalized, and a handful of private companies ruled the roost. These companies were more concerned with providing benefits to selected industrialists, and ignored the interests of the common man. The government responded by nationalizing the insurance sector, and the LIC was founded under an special Act passed by the Parliament. This scam laid the foundation of the nationalization culture in India.
Securities Scam – Harshad Mehta – This is perhaps the most well known of all financial scams – probably because it happened in a highly visible period – economic reforms had just been started in 1991. Harshad Mehta was quick to understand the weaknesses of the banking system, and exploited these weaknesses to the hilt. He managed to procure huge amounts of money using the so called “Ready Forward” deals, and used this money to purchase large amounts of shares at hugely inflated prices. He earned the sobriquet of “Big Bull” due to this penchant. Later, the banks got a clue of his shady deals, and demanded their money back. The house of cards collapsed, and the rest, as they say, is history!
CRB Scam – This scam took place in the years 1992-1996, the period immediately following the Harshad Mehta fallout. This makes the scam even all the more daring and surprising. CR Bhansali, the perpetrator of this scam, floated more than 100 companies, such as CRB Mutual Funds and CRB Capital Markets. The primary purpose of these companies was to attract huge funds from the public by promising high rates of interest. This interest was later paid form further borrowings, and so on. In 1995, the stock market collapsed, and this proved to be the undoing of CR Bhansali. He was investigated, and later arrested. After a brief 3-month stint in jail, he has disappeared without a trace, and nobody is asking!
UTI Scam – The UTI scam involved the flagship US-64 scheme of UTI, which was meant to channel the funds of small investors into instruments bearing high returns. Gradually, US-64 developed a investor base of around 2 crore investors. The economic liberalization in India, coupled with the absolute opacity in the operations of UTI, led to a situation wherein the Government was forced to announce a huge bailout of about Rs 3,500-4,000 crores in an order to prevent default in payments to the investors. The consequences of such a situation are unimaginable. But the story does not end here. Later, it turned out that the UTI Chairman appointed at this time, Mr P S Subramanyam, along with a couple of executive directors, acted wrongly to selectively benefit a powerful coterie of brokers and industrialists, while at the same time, jeopardizing the interest of lakhs of small investors.
Home Trade – Around the year 2000, a finance portal emerged on the financial landscape, and gained quick recognition on the back of endorsements by personalities like Hrithik Roshan, Sachin Tendulkar and Shahrukh Khan. The portal, owned by Sanjay Agarwal, claimed to deal in gilts. Soon, RBI got suspicious of activities of some cooperative banks in the gilt market, and a scam was uncovered. The same old saga – brokers and bankers combining to rob people of their hard earnings – was repeated. Funds from Seaman’s Provident Fund and PPF were affected. The total scam size was reported to be around Rs 300 crores, and more than Rs 200 crores were spent on publicity costs alone.
Ketan Parekh
Securities Scam – Ketan Parekh – That our system never learns its lessons was proved by this scam. Ketan Parkekh, a qualified CA, and a stock broker, identified a number of stocks (popularly called the K-10), and took up huge positions in these. For this purpose, he used a large number of Benami accounts and smaller stock exchanges, such as the Kolkata and Ahmedabad stock exchanges. He also borrowed heavily from banks such as Global Trust Bank and Madhavpura Mercantile Cooperative Bank. Unfortunately, he was stuck in a bear cartel, and was soon pounded to pulp on the stock exchange. The extent of the scam was estimated to be around Rs 1,500 crores.
Abdul Karim Telgi
Fake Stamp Papers – This scam promised to be the mother of all scams in India, with the initial reports quoting a figure of Rs 30,000 crores as the scam size. Later, RBI clarified that this figure was “rather exaggerated”, and the “correct” figure was around Rs 200 crores. Again, this scam exposes how the India system works – Mr Abdul Karim Telgi, the scam kingpin, paid bribes to get access to the security press in Nasik, where stamp papers and currency notes are printed. He later used this knowledge to print fake stamp papers. At the height of the scam, Telgi’s network spanned 14 states, 125 banks and more than 1,000 employees.
DSQ Software – Though this scam was modest in terms of money involved (only Rs 600 crores!), and did not affect the general public to a great extent, yet it is notable for how it came into being. The main player in the scam was Mr Dinesh Dalmia, who was the MD of DSQ Software Ltd. This company issued around 1.3 million shares in 2001, and these shares were allotted to four companies on a preferential basis. NSDL, a stock depository, dematerialized and helped in delivering the shares. Nothing wrong in that, except that the shares were not even listed on any stock exchange! Oops!
IPO Scam – A number of key operators, including corporate stock brokers such as Karvy and Indiabulls, were involved in the IPO scam that spanned the years 2004 – 2005. The modus operandi was simple – the operators would open thousands of fake accounts to purchase shares in IPOs, in the hope of selling later at huge profits. A spate of IPOs issued during this period were heavily oversubscribed due to this scam, sometimes by as much as 40 times!
Satyam – On a cold January morning in 2009, Ramalinga Raju, chairman of Satyam Computer Services, admitted to falsification in the company accounts and various other irregularities, and sent a chill down the collective spine of the Indian financial system. Coming on the back of the global recession, this incident promised to bust the Indian outsourcing industry and the stock market, but for some deft bailout work by the government. The matter is still under investigation and litigation, and the true extent of the scam will be known in the future, perhaps. Mr Raju himself had admitted to irregularities worth around Rs 12,000 crores.
An analysis of the scams reveals a common script – greed, corruption, unscrupulous brokers, colluding bankers, irresponsible authorities and hapless investors, who refuse to learn their lessons. But then, these are the essential ingredients of a worthy financial scam!
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A brief about Top 10 Investment Scams in India
- The Securities Scam
The capital market witnessed its foremost investment scandal in the form of securities scandal in the year 1992. It revealed the utter anarchy and lack of administration in the prevailing fiscal market. The money market at that time permitted funds to be relocated with impunity from financial institution and corporates into equity and consequently witnessed crores of bank's capital to transfer into brokers' account. This illegal market practice was later asserted as "legal and acknowledged".
In an attempt to punish the tricksters, a special court was initiated and scrutinized around 70 cases registered by CBI. Surprisingly, not even a single trickster was found guilty by the dreadfully sluggish judicial system. As a matter of fact, the scamsters made frequent attempts to re-enter the market with same set of traps and resulted in losses to investors. - The IPO scam Soon after the entry of international organizational investors, the Control over Capital Issues was banned as the market saw heavy bull trend resulting in the revitalization of the secondary market from the previous scandals. The ban of Control over Capital Issues unlocked the prospects of massive scandal in Initial Public Offerings (IPO). The scam was executed in two parts; the first part was carried out by the firms that increased their market costs to incur profits in order to sponsor lucrative projects. The second part saw the unison of small time merchants, CAs, investment bankers and traders to hoist new firms and heave public capitals.
The IPO scam prevailed for three long years from 1993-1996 and finally saw its downfall when the costs of the registered firm started deteriorating. - Favored share scam
The scandal was an outcome of the extensive cost fixing on the derivative market. Besides increasing fresh capital, advocates of Indian firms promptly coordinated general body authorizations to transfer shares to themselves on a privileged basis and at a considerable reduction to the market, thinking that the share prices would never see the ground. Conglomerates started this trend and accrued profits of nearly 55o crores until Securities and Exchange Board of India (SEBI) formulated strict guidelines to abandon the market practice. - CRB's cardboard scam
The Rs 1000 crore finacial multinational named as Chain Roop Bhansali (CRB) was the only biggest firm and most impudent of all to benefit and disappear in the loosened market ambiance of mid-1990s. The services offered by his firm entailed FC collection, mutual fund, banking, etc. The clearances obtained by the firm for the trading of these services required sufficient inspection by SEBI and the RBI and the fact that they managed to qualify shows the supervisory weariness of the regulators. Facilitated by the clearances and profitable credit ranking, CRB accrued greater profits based on high value financing. The CRB collapse not only affected the investors but also the other finance firms. - Plantation firms' scam
Since few firms in mid-90s were subject to no guidelines, the plantation companies during that time also got away with profit protrusions. The plantation firms projected themselves as a part of IPO and assured massive returns. The investors were lured and the companies accrued profits from fake campaigns of around Rs 8000 crores plus. - Mutual Funds scam
After several mutual fund scams, the UTI bailout reflected the lack of proper guidelines in the Indian capital market. Since UTI was initiated under its own regulations, it was the tax payers who suffered the loss of Rs 4800 crore in the process. After three years, the company was back purchasing Ketan Parekh's controlled scrips and incurring massive losses in the process. The evidence of the private mutual funds performance has also been inconsistent after hitting the downfall in 1999 and 2000. It took a considerable amount of time for capital market to win back the trust of mutual fund investors. - The 1998 scam
The scamster of 1992 scam, Harshad Mehta came back with a bag of tricks again in 1998. This time he lured investors through a website by trading stock tips. His unremitting manipulation of several shares resulted in the much expected collapse of Bombay Stock Exchange. - Home Trade scam
Initiated in 2000, Home trade invested rs 24 crore in promotional campaigns to attract investors. The scam affected 8 co-operative banks that lost Rs.82 Crore in EPF scheme. The Chief Executive of Hometrade, Mr. Sanjay Aggarwal was convicted by Nagpur Police later. - DSQ Software Scam
In the year 2000 and 2001, the Managing Director of DSQ Software, Mr. Dinesh Dalmia, was held responsible for ambiguous mergers and prejudiced allocation of the amount of upto Rs.595 Crores. He was later convicted in the year 2006. - Satyam Scam
After manipulating the firm's documents for several financial years, the former Chairman and Chief Executive of Satyam Computers, Mr.Ramalinga Raju, was arrested for committing scam, following unethical practice and forgery. He showed greater profits and committed fraud of Rs 700 crores.
The rupee-rouble scam--Part-I
UPA has much to explain
By Namit Verma
UPA has much to explain
By Namit Verma
The whole story rests on the dual pricing of the rouble in India, even though this practice was given up elsewhere in the world after the collapse of the Soviet Union and Russia?s assimilation in the comity of free world economies.
Recent disclosures have, for the first time, brought out the full extent of the rupee-rouble scam which dominated the economic regime shift during the early nineties, at the start of the liberalisation process presided over by the then Finance Minister Manmohan Singh. Preparing to breakaway from the P.V. Narasimha Rao-led Congress government, Shri Arjun Singh had alleged in his historic Bhopal rally that the Narasimha Rao government was embroiled in scams and misappropriation to the tune of Rs. 80,000 crore. While this was reported in the media, it was not taken seriously, because the Indian masses did not believe that a fraud of such enormous magnitude was possible. In retrospect, it appears that the charges levelled by Shri Arjun Singh were wholly correct.
Understanding the new methodology of scams, which began during Dr Manmohan Singh?s first political tenure as Finance Minister of India, has become important because of the increasing regularity with which this method is being applied. The method involves effecting a regime change in the economic sphere. At the time of regime changes, there is greater tolerance for procedural irregularities in the name of incompatibility between succeeding regimes. This tolerance is used to systematically indulge in irregularities which are purported to be insignificant, but instead drain the national treasury of tens of thousands of crores of rupees. The secrecy surrounding these irregularities only makes the decision-makers? intent even more suspect.
The demise of the Union of Soviet Socialist Republics on 8 December 1991 led to upheavals across the world. The Soviet Union and its successors paid the price of the regime change. The economic cost of this regime change was borne almost entirely by constituents of that once great country. Not ally or protectorate was asked to share the burden of the collapse, not Cuba, not Poland, not Czechoslovakia, nor Yugoslavia. Only India volunteered to share the burden.
Strangely, the burden of the Soviet collapse, as shared by India, did not end up in Moscow; most of it ended up in numbered accounts in Switzerland. So did we share the burden of the Soviet collapse with that once friendly nation: obviously not. But we did share substantial proceeds out of the Indian GDP and government revenue in this guise. The question is, whom did we share this booty of tens of thousands of crores with? Were these merely book operations? In straight words, how many of these operations were phony operations? Worse, how many times were these real and phony operations inflated at the time of settling the bills? How was this scam rationalised inside government decision-making circles? And finally, who was the mastermind behind this loot of the Indian exchequer?
The whole story rests on the dual pricing of the rouble in India, even though this practice was given up elsewhere in the world after the collapse of the Soviet Union and Russia?s assimilation in the comity of free world economies.
When the Soviet polity collapsed, its economy and financial system also crashed. Not only were the Russians forced to correct the international value of their currency, they also had to contend with galloping inflation the like of which the world had never seen before, not even in the famed economic history book renderings of German inflation during and between the World Wars.
Soviet Union had been a major international player who had extended debts to various East Bloc and other friendly countries, including Cuba, Poland, India, et al. As their currency?s exchange rate collapsed to 1/5000th its value and even further to 1/15000th of its pre-December 1991 value, its international loan portfolio was accordingly revalued. Rather than collect a pittance compared to the original debt value, the successor state of the Soviet Union, viz the Commonwealth of Independent States, decided to write off the entire rouble debt. Thus the debt to Poland, Cuba and a host of other countries was written off.
At that point of time, India had the option of settling the entire Russian debt for a then current exchange rate determined total value of around 23 crore rupees. We did not do so. Even as great economist Dr Manmohan Singh presided over the Finance Ministry, we voluntarily offered to revalue the rouble debt. Instead of then current value of 23 crore we agreed to pay back the revalued debt in installments over several years in staggered installments. We ended up paying tens of thousands of crores out of the notional Vostro escrow accounts in the Reserve Bank of India.
Understanding this phenomenon is key to understanding how a significant part of the Indian GDP is creamed off by the top by corrupt Indian politicians, bureaucrats, businessmen and their foreign accomplices.
Understanding the new methodology of scams, which began during Dr Manmohan Singh?s first political tenure as Finance Minister of India, has become important because of the increasing regularity with which this method is being applied. The method involves effecting a regime change in the economic sphere. At the time of regime changes, there is greater tolerance for procedural irregularities in the name of incompatibility between succeeding regimes. This tolerance is used to systematically indulge in irregularities which are purported to be insignificant, but instead drain the national treasury of tens of thousands of crores of rupees. The secrecy surrounding these irregularities only makes the decision-makers? intent even more suspect.
The demise of the Union of Soviet Socialist Republics on 8 December 1991 led to upheavals across the world. The Soviet Union and its successors paid the price of the regime change. The economic cost of this regime change was borne almost entirely by constituents of that once great country. Not ally or protectorate was asked to share the burden of the collapse, not Cuba, not Poland, not Czechoslovakia, nor Yugoslavia. Only India volunteered to share the burden.
Strangely, the burden of the Soviet collapse, as shared by India, did not end up in Moscow; most of it ended up in numbered accounts in Switzerland. So did we share the burden of the Soviet collapse with that once friendly nation: obviously not. But we did share substantial proceeds out of the Indian GDP and government revenue in this guise. The question is, whom did we share this booty of tens of thousands of crores with? Were these merely book operations? In straight words, how many of these operations were phony operations? Worse, how many times were these real and phony operations inflated at the time of settling the bills? How was this scam rationalised inside government decision-making circles? And finally, who was the mastermind behind this loot of the Indian exchequer?
The whole story rests on the dual pricing of the rouble in India, even though this practice was given up elsewhere in the world after the collapse of the Soviet Union and Russia?s assimilation in the comity of free world economies.
When the Soviet polity collapsed, its economy and financial system also crashed. Not only were the Russians forced to correct the international value of their currency, they also had to contend with galloping inflation the like of which the world had never seen before, not even in the famed economic history book renderings of German inflation during and between the World Wars.
Soviet Union had been a major international player who had extended debts to various East Bloc and other friendly countries, including Cuba, Poland, India, et al. As their currency?s exchange rate collapsed to 1/5000th its value and even further to 1/15000th of its pre-December 1991 value, its international loan portfolio was accordingly revalued. Rather than collect a pittance compared to the original debt value, the successor state of the Soviet Union, viz the Commonwealth of Independent States, decided to write off the entire rouble debt. Thus the debt to Poland, Cuba and a host of other countries was written off.
At that point of time, India had the option of settling the entire Russian debt for a then current exchange rate determined total value of around 23 crore rupees. We did not do so. Even as great economist Dr Manmohan Singh presided over the Finance Ministry, we voluntarily offered to revalue the rouble debt. Instead of then current value of 23 crore we agreed to pay back the revalued debt in installments over several years in staggered installments. We ended up paying tens of thousands of crores out of the notional Vostro escrow accounts in the Reserve Bank of India.
Understanding this phenomenon is key to understanding how a significant part of the Indian GDP is creamed off by the top by corrupt Indian politicians, bureaucrats, businessmen and their foreign accomplices.
** The Rupee-Rouble Scam - II
Manmohan knew it all along
The rupee-rouble scam--Part-II
By Namit Verma
Despite opposition from the other ministries concerned, Commerce, Defence and External Affairs; the Indian Finance Ministry under Dr Manmohan Singh and with the redoubtable team of flamboyant officers like Montek Singh Ahluwalia, N.K. Singh, N.P. Singh and A.K. Singh allowed Boris Yeltsin to unilaterally abrogate the 1978 protocol without any legal and/or compensatory financial recourse.
Ever heard of SISTEMA, or of NORILSK? They will outbid all competition to buy your stock, your company and your mineral reserves. Whether it be coveted telecom licenses or scarce mineral resources, nobody can withstand their purchasing power. But then, they have an advantage, they buy the rupee at a discount. Technically, at a 90 to 95 per cent discount; reportedly, after paying off their political, bureaucratic and central banking friends, at a 40 to 45 per cent discount.
These companies are the progeny of Dr Manmohan Singh’s long career in the world of Indian finance. Few entrepreneurs could have sired such brilliant corporate children whose growth rate defied gravity. Fewer still could have nurtured such dreams in the tenuous world of governance and politics in a democracy. Yet, the vision and genius of Dr Manmohan Singh made these profit centre marvels possible, as he nurtured them in many capacities.
As Secretary, Ministry of Finance, Department of Economic Affairs, Government of India, he masterminded the Intergovernmental Protocol of 25 November 1978 with the Union of Soviet Socialist Republics. Through the 1978 protocol, he arranged for the administered fixed parity of the rupee and the rouble to be replaced by a floating parity linked to western currencies. This led to the withdrawal of the Soviet Bloc’s back-channel access to western economic systems through the shock absorber Indian economy.
Removal of the Indian buffer made the USSR vulnerable to the contradictions between its domestic and international trading sectors; thereby facilitating the West getting it’s foot in the door and bankrupting the Soviet treasury. Of course, the Soviet state with its enormous asset base couldn’t be bankrupted; yet, following this liquidity/monetary crisis, America friendly faces started emerging in key positions in the Union of Soviet Socialist Republics, setting up the dominoes for Mikhail Gorbachev to unleash, and Boris Yeltsin to collect upon. As Co-Chairman of the Indo-Soviet Joint Planning Group Meeting (1980-82), he authorised the Deferred Payments Protocol of 30 April 1981.
This smokescreen has proved to be more an instrument of administered value inflation/revision of an ostensibly floating rouble, than a deferred payment agreement: contradictions abound. As leader of the Indian delegation to the Indo-Soviet Monitoring Group Meeting (1982), like an adept rural moneylender, he ensured self-inflating clauses in the revised protocol to ensure that the loan repayment would remain incomplete despite being paid back several times.
As Minister of Finance, he authorised the Letters of Exchange dated 29 January 1993, to open unhindered access to India’s national treasury for Russian companies. By now, the political wheel had turned upside down in the erstwhile Soviet Union, and the US friendly Boris Yeltsin had taken over.
Despite opposition from the other ministries concerned, Commerce, Defence and External Affairs; the Indian Finance Ministry under Dr Manmohan Singh and with the redoubtable team of flamboyant officers like Montek Singh Ahluwalia, N.K. Singh, N.P. Singh and A.K. Singh allowed Boris Yeltsin to unilaterally abrogate the 1978 protocol without any legal and/or compensatory financial recourse. We shall discuss these actions of the Government of India in greater detail in forthcoming paragraphs.
As Prime Minister, Dr Singh is running his final lap in India, he is in a rush to sanction full liquidity and valuation rights accorded to these special rupees, despite the fact that while signing the 1993 protocol, Yeltsin had specifically promised that this would not be allowed. Yet, every agreement has been set aside and this has been effected.
Thus a company like Sistema is bidding for majority control of Shyam Telelink which in turn was allotted a Universal Telecommunication License for the whole country earlier this year. Now Sistema bought Shyam Telelink shares at Rs 55 each, or around 1.1 Soviet Rouble (Sixth Rouble: 1961-1997) under the 1993 protocol read with Public Notice No 12 (RE 2007)/2004-2009 of 27 June 2007, whereby the RBI fixed the Indian Rupee value of the Special Currency Basket linked to the Rouble at 56.8292 effective from 19 April 2007.
Again, conversion rate from Sixth Soviet Rouble to the Seventh Russian Rouble was fixed at 1000 Sixth Rouble to 1 Seventh Rouble at the time of new issue on 1 January 1998. Thus, the price of 1.1 Sixth Rouble per Shyam Telelink share = 0.0011 Seventh Rouble per Shyam Telelink share = 0.0011 x 0.044012 dollars per Shyam Telelink share = 0.0000484132 dollars per Shyam Telelink share = 0.0000484132 x 42.735 rupees = 0.002068938102 Rupees or 2.068938102 paisa per Shyam Telelink share! Calculating further, that Sistema bought these Rupee credits at a 90 per cent discount, or at 10 per cent of face value, the effective cost per Shyam Telelink share for Sistema works out at 0.0207 paise! Given that the effective discount was only 50 per cent, assuming 20 per cent kickback each to the Indian and Russian establishments, even so, the price per Shyam Telelink share to Sistema works out at 1.034469 paise or Re 0.01.
So, by channeling their money through the arbitrage funnel of the Indo-Russian Intergovernmental Agreement of 1993, the foreign company is grabbing shares for effectively 1 paisa each. All this, while indigenous bidders would have to pay 55 honest rupees for the same shares at the same time, i.e. five thousand five hundred times the price paid by the Russian company!
Such is the magnanimity of Dr Manmohan Singh in handing over Indian assets to foreign entities. In the wake of these facts, can there be any doubt about the love, adulation, prestige and loyalty he commands in the international arena.http://www.organiser.org/dynamic/modules.php?name=Content&pa=showpage&pid=248&page=4
The rupee-rouble scam--Part-I @
http://www.organiser.org/dynamic/modules.php?name=Content&pa=showpage&pid=247&page=3
The rupee-rouble scam--Part-II
By Namit Verma
Despite opposition from the other ministries concerned, Commerce, Defence and External Affairs; the Indian Finance Ministry under Dr Manmohan Singh and with the redoubtable team of flamboyant officers like Montek Singh Ahluwalia, N.K. Singh, N.P. Singh and A.K. Singh allowed Boris Yeltsin to unilaterally abrogate the 1978 protocol without any legal and/or compensatory financial recourse.
Ever heard of SISTEMA, or of NORILSK? They will outbid all competition to buy your stock, your company and your mineral reserves. Whether it be coveted telecom licenses or scarce mineral resources, nobody can withstand their purchasing power. But then, they have an advantage, they buy the rupee at a discount. Technically, at a 90 to 95 per cent discount; reportedly, after paying off their political, bureaucratic and central banking friends, at a 40 to 45 per cent discount.
These companies are the progeny of Dr Manmohan Singh’s long career in the world of Indian finance. Few entrepreneurs could have sired such brilliant corporate children whose growth rate defied gravity. Fewer still could have nurtured such dreams in the tenuous world of governance and politics in a democracy. Yet, the vision and genius of Dr Manmohan Singh made these profit centre marvels possible, as he nurtured them in many capacities.
As Secretary, Ministry of Finance, Department of Economic Affairs, Government of India, he masterminded the Intergovernmental Protocol of 25 November 1978 with the Union of Soviet Socialist Republics. Through the 1978 protocol, he arranged for the administered fixed parity of the rupee and the rouble to be replaced by a floating parity linked to western currencies. This led to the withdrawal of the Soviet Bloc’s back-channel access to western economic systems through the shock absorber Indian economy.
Removal of the Indian buffer made the USSR vulnerable to the contradictions between its domestic and international trading sectors; thereby facilitating the West getting it’s foot in the door and bankrupting the Soviet treasury. Of course, the Soviet state with its enormous asset base couldn’t be bankrupted; yet, following this liquidity/monetary crisis, America friendly faces started emerging in key positions in the Union of Soviet Socialist Republics, setting up the dominoes for Mikhail Gorbachev to unleash, and Boris Yeltsin to collect upon. As Co-Chairman of the Indo-Soviet Joint Planning Group Meeting (1980-82), he authorised the Deferred Payments Protocol of 30 April 1981.
This smokescreen has proved to be more an instrument of administered value inflation/revision of an ostensibly floating rouble, than a deferred payment agreement: contradictions abound. As leader of the Indian delegation to the Indo-Soviet Monitoring Group Meeting (1982), like an adept rural moneylender, he ensured self-inflating clauses in the revised protocol to ensure that the loan repayment would remain incomplete despite being paid back several times.
As Minister of Finance, he authorised the Letters of Exchange dated 29 January 1993, to open unhindered access to India’s national treasury for Russian companies. By now, the political wheel had turned upside down in the erstwhile Soviet Union, and the US friendly Boris Yeltsin had taken over.
Despite opposition from the other ministries concerned, Commerce, Defence and External Affairs; the Indian Finance Ministry under Dr Manmohan Singh and with the redoubtable team of flamboyant officers like Montek Singh Ahluwalia, N.K. Singh, N.P. Singh and A.K. Singh allowed Boris Yeltsin to unilaterally abrogate the 1978 protocol without any legal and/or compensatory financial recourse. We shall discuss these actions of the Government of India in greater detail in forthcoming paragraphs.
As Prime Minister, Dr Singh is running his final lap in India, he is in a rush to sanction full liquidity and valuation rights accorded to these special rupees, despite the fact that while signing the 1993 protocol, Yeltsin had specifically promised that this would not be allowed. Yet, every agreement has been set aside and this has been effected.
Thus a company like Sistema is bidding for majority control of Shyam Telelink which in turn was allotted a Universal Telecommunication License for the whole country earlier this year. Now Sistema bought Shyam Telelink shares at Rs 55 each, or around 1.1 Soviet Rouble (Sixth Rouble: 1961-1997) under the 1993 protocol read with Public Notice No 12 (RE 2007)/2004-2009 of 27 June 2007, whereby the RBI fixed the Indian Rupee value of the Special Currency Basket linked to the Rouble at 56.8292 effective from 19 April 2007.
Again, conversion rate from Sixth Soviet Rouble to the Seventh Russian Rouble was fixed at 1000 Sixth Rouble to 1 Seventh Rouble at the time of new issue on 1 January 1998. Thus, the price of 1.1 Sixth Rouble per Shyam Telelink share = 0.0011 Seventh Rouble per Shyam Telelink share = 0.0011 x 0.044012 dollars per Shyam Telelink share = 0.0000484132 dollars per Shyam Telelink share = 0.0000484132 x 42.735 rupees = 0.002068938102 Rupees or 2.068938102 paisa per Shyam Telelink share! Calculating further, that Sistema bought these Rupee credits at a 90 per cent discount, or at 10 per cent of face value, the effective cost per Shyam Telelink share for Sistema works out at 0.0207 paise! Given that the effective discount was only 50 per cent, assuming 20 per cent kickback each to the Indian and Russian establishments, even so, the price per Shyam Telelink share to Sistema works out at 1.034469 paise or Re 0.01.
So, by channeling their money through the arbitrage funnel of the Indo-Russian Intergovernmental Agreement of 1993, the foreign company is grabbing shares for effectively 1 paisa each. All this, while indigenous bidders would have to pay 55 honest rupees for the same shares at the same time, i.e. five thousand five hundred times the price paid by the Russian company!
Such is the magnanimity of Dr Manmohan Singh in handing over Indian assets to foreign entities. In the wake of these facts, can there be any doubt about the love, adulation, prestige and loyalty he commands in the international arena.http://www.organiser.org/dynamic/modules.php?name=Content&pa=showpage&pid=248&page=4
The rupee-rouble scam--Part-I @
http://www.organiser.org/dynamic/modules.php?name=Content&pa=showpage&pid=247&page=3
Posted by GlobalCitizen at 11:19 AM
The outsider in the system
What stands out in Javid Chowdhury’s autobiographical account of his life as a civil servant is his angst and mild bitterness about governance in general and, more particularly, the manner in which economic liberalisation took place after the 1990-91 crisis. Clearly, Mr Chowdhury’s mindset is different from that of those who ran economic policy while he was in the finance ministry — heading a directorate responsible for the enforcement of foreign exchange laws and, later, as revenue secretary.
He makes no bones about his dislike of the “tsars of economy policy” in government. He does not name them specifically, but you can easily guess who these people may be from the many incidents he recounts. Montek Singh Ahluwalia will easily top that list. Vijay L Kelkar and N K Singh also figure in that list of the tsars with whom Chowdhury could not see eye-to-eye on economic policies. Chowdhury is no fence-sitter. You may not always agree with his assessment of Messrs Ahluwalia, Kelkar or Singh, but his frank views on people and policies display a quality that is increasingly becoming rare among civil servants.
Mr Chowdhury reserves his most critical comments for Mr Ahluwalia. Recounting the finance ministry’s comments on the securities scam in the early 1990s before the Joint Parliamentary Committee (JPC) probing charges of financial irregularities, Mr Chowdhury says the performance of Mr Ahluwalia, then the economic affairs secretary, was “that of an excellent advocate with a very weak brief”. It was clear that Mr Ahluwalia’s explanation that the securities scam was an outcome of a systemic failure did not impress Mr Chowdhury, then in the enforcement directorate. Worse, the JPC proceedings, according to him, showed how the government “brazenly” defended “illegalities in the universe of securities and banks”.
It is here that Mr Chowdhury gives you a clue as to why he may have disliked the tsars of economic policy. This is how he sums up Mr Ahluwalia’s long lecture before the JPC: “There was not the slightest tinge of introspection or remorse — there was only an absolute confidence of talking one’s way out of the crisis. The attitude was that if laws had been violated, the laws were wrong — because they understood economics, and therefore what they say should be the law.” And systemic failure became a “ready alibi for any otherwise indefensible action in the decades that followed”.
Mr Ahluwalia figures again when the author writes about the irregularities over foreign exchange transactions relating to Indo-Russian rouble-rupee trade. As enforcement director, Mr Chowdhury’s team had investigated the misuse of the vostro accounts maintained by some banks, including a few branches of well-known foreign banks. However, just before officials of these banks could be charge-sheeted, the matter was taken up by the finance minister (who else but Dr Manmohan Singh!), who quickly convened a meeting. Significantly, Mr Chowdhury writes, the revenue secretary at that time, M R Sivaraman, did not attend that meeting citing some other important engagement, and Mr Ahluwalia questioned the advisability of proceeding with the charge-sheets since they would be bad for investment and shake up the corporate world. Mr Chowdhury fought a gallant battle and emerged victorious in the end, getting even a rare comment from Dr Singh that suggested that he was not happy with the way the finance secretary had dealt with the matter.
Mr Chowdhury also makes it clear that he was extremely uncomfortable with the reforms process, although he does not single out anything substantive or specific as problematic. He saw “an uncritical liberalizer” in Vijay Kelkar, with whom he worked as additional secretary in the petroleum ministry. “Privatization fever” was raging in the government in 1995-96 and was getting a fillip under Mr Kelkar.
N K Singh, another tsar of economic policy, surfaces in these memoirs in a rather strange episode — as secretary in the Prime Minister’s Office when Atal Bihari Vajpayee was PM. Mr Vajpayee had decided to remove the ban on production of non-iodised salt on the basis of a petition made by some Gandhians. However, as Mr Chowdhury learnt as the health secretary, Mr Singh had not conveyed that decision to the health ministry since he knew the decision would have wide-ranging public health implications. Mr Chowdhury’s explanation of why Mr Singh took no action is significant: “While NK could gift away Rashtrapati Bhawan if he was in the mood, he would be canny enough to know the public cost of that generosity…Public loss with no corresponding private gain was a proposition NK could not rationalize”. Later, the PM realised what must have happened and called Mr Chowdhury personally and directed him to remove the ban!
A recurring theme is a sense of hurt and disappointment that Mr Chowdhury fails to conceal in recounting how the reform process dismantled the earlier policy regime. He presents himself as a bewildered bureaucrat who was “always told we were reforming, but no one had a clue about the macro-plan or the reason.” As someone who headed the enforcement directorate, his main grievance was that the “tsars of the economy” wanted the foreign exchange regulations to be made toothless. He resents the campaign that the foreign exchange regulation act had to be repealed and replaced with the foreign exchange management act, as the earlier law was only an instrument for harassment. “However, the impression given, that high-profile corporates were routinely and falsely targeted, is sheer fiction,” Mr Chowdhury declares. This lacks conviction as elsewhere in the memoirs, he narrates how the directorate was prone to misuse by politicians and ministers to meet political objectives.
Mr Chowdhury describes his memoirs as an insider’s view. But his disappointment with the way the Foreign Exchange Regulation Act was diluted and how double-tax avoidance agreements became the conduit for tax evasion shows that he largely remained an outsider in the system — at a time when much of India’s economic policies were changed. The Insider’s View is testimony to that disconnect.
UPA Oil for food scam
The scam took place in 2005 and K.Natwar Singh was dismissed from the duty after finding the oil scam with Iraq for food. He allegedly favoured some people to take part in the oil for food program of the Iraq government. Kickbacks were allegedly paid.
Scam
The UN-appointed Volcker Committee, which probed irregularities in Iraq's oil-for-food programme during the regime of Saddam Hussein, isuued its report in October last year.
In his report, Paul Volcker, former chairman of the US Federal Reserve who headed the committee, named Natwar Singh and the Congress party as 'non-contractual beneficiaries' of the programme, triggering the political controversy that forced him to resign as external affairs minister on November 8, 2005.
He, however, continued as minister without portfolio till he finally quit the government almost a month later. The government also appointed former diplomat Virender Dayal as a special envoy to liase with the UN to collect documents related to the oil-for-food scam.
About 135 Indian entities figured in the 630-page Volcker Committee report, and the Income Tax department carried out enquiries into transactions of some of the Indian individuals and firms listed in the document.
The Volcker Committee, which extensively examined the oil-for-food programme that was meant to enable Iraq to use oil revenues to provide humanitarian supplies to its people, found irregularities in both Iraqi earnings from oil exports and the use of these revenues for purchasing relief materials.
Between December 1996 and March 2003, Iraq sold oil worth $64.23 billion to 248 companies under the programme. During this period, it purchased $34.5 billion of humanitarian supplies from 3,614 companies from across the world.
The Volcker Report alleged Saddam Hussein's regime levied an 'illicit' surcharge on oil contracts between September 2000 and September 2002. It estimated the regime mobilised $228.8 million from such surcharges paid by 139 companies.
The panel also alleged that 2,253 companies that sold humanitarian supplies paid 'kickbacks' worth $1.55 billion to the regime. The Volcker panel estimated the total 'illicit' income accruing to the Iraqi regime at $1.779 billion.
Natwar Singh and the Congress were named in the Volcker Committee's report in a section that provided details of oil allocations made by the then Iraqi government to various entities and individuals. All these entities, classified 'non-contractual beneficiaries,' were recipients of oil allocations, according to the report.The reports said 'Iraq dispensed oil allocations to and on behalf of a wide array of individuals and groups whom it considered influential in their respective countries and who espoused pro-Iraq views or organised anti-sanctions activities.'
Andaleeb Sehgal, a friend of Jagat Singh, and Aditya Khanna, a relative of Natwar Singh, are understood to have received financial payoffs in the deal by getting oil coupons based on the letters of recommendation given by Natwar Singh.
The authority has found that Natwar and his son had misused their position in helping Sehgal and Khanna bag three oil contracts from the UN sanctioned Saddam regime.
Sehgal and Khanna, in turn, passed the contracts on to Swiss oil company Masefield AG which drew the oil and paid them a commission, the report says, adding that on a cut of five cents a barrel, Sehgal and Khanna received a total commission of $1,46,000, which they divided between themselves in a ratio of 4:1.
Former Indian Ambassador to Croatia and Congress leader Aniel Matherani, who was part of a four-member delegation led by Natwar to Baghdad in January, 2001, was also exonerated of any wrong doing.
When the oil-for-food scam came to light in November last year, Natwar Singh, had to first quit as external affairs minister and then from the Union Cabinet within a month on December 6.
In between after a political uproar the government appointed the Inquiry Authority headed by Justice R S Pathak, former Chief Justice of India, to probe the whole affair and at the same time it asked the Enforcement Directorate to investigate the financial dealings of the Indian entities. Virender Dayal collected documents from the UN, Iraq and Jordan, running into more than 1,100 pages and a CD containing material of 82,000 pages. Among these were documents from Iraq's State Oil Marketing company and banks in Jordan.
The Indian entities allegedly routed kickbacks through Jordanian banks. The papers obtained from Iraq related to oil contracts issued during the Saddam Hussein regime. The firm Masefield, named in the Volcker report for having lifted oil earmarked for Indian entities, was linked to Hamadaan Exports of Andaleeb Sehgal, who was accused of passing on kickbacks to Natwar Singh and the Congress.
Both had denied these charges and the Pathak panel too said financial transactions had not been traced to them.
Investigation
The Justice Pathak Committee on 3 August 2006, indicted former external affairs minister K Natwar Singh and his legislator son Jagat Singh for procurement of contracts in the United Nations oil-for-food programme in Iraq during Saddam Hussain's regime. However, no money has been traced to them.
The copy of the 110-page report, including 22 pages of annexures, was handed over to Prime Minister Manmohan Singh by Justice R S Pathak, who headed the one-man inquiry authority. The authority is believed to have exonerated the Congress of all charges of being a non-contractual beneficiary in the scam in 2001.
Natwar Singh, who was summoned by the Authority, as were Sehgal and others, had always maintained that he had not done anything wrong in the whole affair and the inquiry would prove his innocence. He had also accused the Enforcement Directorate of indulging in a witch-hunt and harassing his son and others. He had hinted at some higher-ups in the Congress party of going after him and had complained to the prime minister.
PIL - Corporate Crimes & Corporate Thugs
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R
editor SOS e Clarion of Dalit & SOS e Voice for Justice
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
Cabinet Secretary ,Ministry of Corporate Affairs , Government of India & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the
Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
a. "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt public servants.
b. There are many companies in india , promoters of which are indulging in illegal practices in their greed to make money. They are swindling lending banks & share holders by posting wrong picture about their project worth , product costing, etc. They siphon off money too to their sister companies by insider trading , by buying machineries & material at higher than market price from sister companies , by selling products to their sister companies at lower value , by lending loans , guarantees to their sister companies , etc. some of our greedy auditors & company secretaries are teaching these criminal industrialists how to tweak laws , how to escape through legal loop holes unscathed. These type of Industrialists are nothing but Rogues , Third class people with third class culture but in First class attire.
c. Add to this corporate corruption , the high ranking executives indulge in corrupt practices during purchase , sales functions draining the company resources.
d. The managers of lending banks , executives of SEBI , officers of MCA have a say in the running of the culprit companies. But they keep mum , for a price ?
e. Most part of that swindled money , black money is destabilizing our economy , causing inflation , funding underworld & Terrorist outfits.
2. Question(s) of Law:
What is the guarantee for public money invested or lent to such fraudulent companies ? How to recover the public money ?
What is the guarantee for public money invested or lent to such fraudulent companies ? How to recover the public money ?
3. Grounds:
Requests for equitable justice , Accountability for public money worth crores of rupees.
4. Averment:
Private companies in their greed for money are violating norms in league with public officials. They have caused loss to the public exchequer and to the public. Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions in the case of Reliance , RPG , Nestle and others.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
(ii) to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
(iii) To bring all private companies who have either borrowed loans from public , bank , FIs , government or collected share capital from public , FIs , government or received subsidy , seed capital from public , public institution under purview of RTI Act of Government of India.
(iv) To annually make public , combined list of all Non Performing Assets of banks , FIs , NBFCs , Government with names of defaulting promoters.
(v) To annually make public wealth details of Bank Managers , FI managers.
(vi) To make it mandatory for each company , to take approval of share holders , banks before making any donations either to political parties , religious bodies , etc.
(vii) When a company goes bust due to siphoning off money by promoters , in such cases the sister companies or companies in criminal nexus who have benefitted from the swindled money must also be seized , personal properties of promoters of the culprit company / sister companies and the properties in the names of their family members must also be seized , auctioned off to recover public money.
(viii) The financial transaction or material transaction like purchase / sale of material between an Indian company and a company abroad , must be endorsed by share holders , lending banks.
(ix) To annually make public wealth details of all state government & central government Tax officials , who are aiding the Criminal Industrialists in their crimes.
(x) We at SOS e Voice for Justice & SOS e Clarion of Dalit offer our conditional services to the SCI , to apprehend criminals , guilty industrialists. Are you ready to utilize it ?
(xi) Whistle blowers who alert about corporate crimes must be protected & rewarded.
(xii) The channeling of money from these corporate to Underworld & Terrorist outfits must be stopped.
(xiii) All NGOs , Political Parties , Religious Bodies must annually make public the details of donations received from public & corporates.
(xiv) To make Corporate Social Responsibility mandatory for all corporate making profit .
(xv) To annually make public CSR details of Corporates and punish those showing inflated figures.
(xvi) As a final step banning all corporates from making donations to NGOs , Political Parties , Religious bodies and make it mandatory for them to invest in CSR initiatives.
(xvii) In cases of corporate crimes , liability should cover promoters , directors , decision making executives of the company individually.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Kindly read full details at following web page :
Fraud in Banking Sector
PIL- Reliance Scams
PIL – Killer Colas , Noodles , Medicines
RBI – Robber’s Bureau of India
DOW – Pay up
Corporate Terrorists of India
Vostro Account Scam
CORPORATE CRIMES RPG CABLES LIMITED
Dated : 16th January 2015……………………………………….. FILED BY: NAGARAJA.M.R.
Place : Mysuru , India………………………….. …………………..PETITIONER-IN-PERSON
Place : Mysuru , India………………………….. …………………..PETITIONER-IN-PERSON
Editorial : CORPORATE CRIMINALS / CORPORATE TERRORISTS / TAX THIEVES RESPONSIBLE FOR ALL ILLS IN INDIA
In India , a small shop owner to big industrialist have mastered the art of TAX EVASION . their teachers - some corrupt tax officials & auditors. The black money thus created
is causing inflation, feeding the mafia , underworld. Some industrialists lobby ( bribe ) with the government & gets favourable laws enacted. This black money is the main source of funds for political parties , religious bodies & terrorist outfits.
In India , a small shop owner to big industrialist have mastered the art of TAX EVASION . their teachers - some corrupt tax officials & auditors. The black money thus created
is causing inflation, feeding the mafia , underworld. Some industrialists lobby ( bribe ) with the government & gets favourable laws enacted. This black money is the main source of funds for political parties , religious bodies & terrorist outfits.
The recent raids by C.B.I & KARNATAKA LOKAYUKTHA have proved how the tax officials have become multi-millionaires. The sad part is that some of the police officials who are on deputation to C.B.I & LOKAYUKTHA themselves are utterly corrupt.
This scourge can only be cured by corporate accountability intoto. However , all the industrialists , traders who are demanding for more flexible labour reforms , economic reforms , infrastructure , etc are not at all concerned about their own accountability with respect to tax , environment , other laws. The MNCs coming to India are not coming here for best Indian talents or infrastructure alone. In their own countries they are feeling the
heat of strict environment laws , consumer laws , share holder disclosures , corporate accountability. Some of these MNCs are being kicked out of their countries , by it's own people .These MNCs are aware that in India , by greasing the palms environment laws , labour laws , tax laws , etc everything can be flouted , cases in courts can be dragged on for years . share holder disclosures , corporate transparency is minimum.
However when a concerned citizen complains about the crimes of guilty corporates , organizations or corrupt public servants , immediate action is not taken. The file is kept pending for months , years together , allowing the criminals to manipulate all the evidences , records , ground situations. Finally even if action is taken guilty will be let out due to favorable evidences , there are chances that the concerned citizen himself is falsely implicated & put behind bars . in all such cases all the involved parties must be subjected to lie detector tests .
Bottomline : development is a must , it must be all around . but not at the cost of majority to make a few richer.
Jai Hind. Vande Mataram.
Your’s sincerely,
Nagaraja.M.R.
PIL – Legal Prosecution of Government officials , Public Servants involved in Reliance Scams
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R ,
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R ,
editor , SOS e Clarion of Dalit & SOS e Voice for Justice ,
# LIG 2 , No 761 , HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.....Petitioner
Versus
Honourable Cabinet Secretary , PMO , Government of India & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF
MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
# LIG 2 , No 761 , HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.....Petitioner
Versus
Honourable Cabinet Secretary , PMO , Government of India & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF
MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
Our whole hearted respects to honest few in judiciary , parliament & public service. Our salutes to them , due to honest efforts of those few noble persons only at least democracy is surviving in India.
A . "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , public servants & Judges. Some of the below mentioned judges fall among the category of churchill’s men – Rogues , Rascals & Freebooters.
A . "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , public servants & Judges. Some of the below mentioned judges fall among the category of churchill’s men – Rogues , Rascals & Freebooters.
B . Loot of natural resources , telecom spectrum & public property in India and illegal aid to those criminals by government officials.
2. Question(s) of Law:
Are government officials , telecom , petroleum , finance department officials , police & revenue officials who aided loot , above Law & can go scot free ?
3. Grounds:
Requests for equitable justice , legal prosecution & punishment of guilty government officials and public servants .
4. Averment:
Give what action has been taken by government of india or state governments or other statutory bodies against reliance industries for it’s irregularities in telecom , oil sector , etc.
2. Question(s) of Law:
Are government officials , telecom , petroleum , finance department officials , police & revenue officials who aided loot , above Law & can go scot free ?
3. Grounds:
Requests for equitable justice , legal prosecution & punishment of guilty government officials and public servants .
4. Averment:
Give what action has been taken by government of india or state governments or other statutory bodies against reliance industries for it’s irregularities in telecom , oil sector , etc.
That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
(ii) Hereby , I do request the honourble supreme court of india to legally prosecute guilty officials mentioned in the above said report.
(iii) Hereby , I do request the honourble supreme court of india to uphold the constitution of india , to protect natural resources and to protect the constitutional rights of all Indian citizens including mine.
(iv) Hereby , I do request the honourble supreme court of india to immediately keep all government officials mentioned in the above said report under suspension from service & to take necessary steps to protect all type of evidences.
(v) to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Date : 28th November 2015………………………………Filed By : Nagaraja.M.R.
Place : Mysuru India…………………………………………..Petitioner in person
PIL – Legal Prosecution of officials involved in Bellary Mining Scam
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R ,
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R ,
editor , SOS e Clarion of Dalit & SOS e Voice for Justice ,
# LIG 2 , No 761 , HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.....Petitioner
Versus
Honourable Chief Secretary , Government of Karnataka & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF
MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
# LIG 2 , No 761 , HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.....Petitioner
Versus
Honourable Chief Secretary , Government of Karnataka & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF
MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
Our whole hearted respects to honest few in judiciary , parliament & public service. Our salutes to them , due to honest efforts of those few noble persons only at least democracy is surviving in India.
A . "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , public servants & Judges. Some of the below mentioned judges fall among the category of churchill’s men – Rogues , Rascals & Freebooters.
A . "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , public servants & Judges. Some of the below mentioned judges fall among the category of churchill’s men – Rogues , Rascals & Freebooters.
B . Loot of natural resources in Karnataka state and illegal aid to those criminals by government officials. Read Karnataka Lokayukta Mining scam report .
2. Question(s) of Law:
Are forest officials , police & revenue officials who aided bellary mining loot , above Law & can go scot free ?
3. Grounds:
Requests for equitable justice , legal prosecution & punishment of guilty police , revenue , forest officials.
4. Averment:
GIVE WHAT ACTION HAS BEEN TAKEN AGAINST THE GUILTY GOVERNMENT OFFICIALS MENTIONED IN THE KARNATAKA LOKAYUKTA REPORT submitted by Justice Santosh Hegde & Shri.U.V.Singh ABOUT BELLARY MINING SCAM. IF NOT WHY ? REASONS THEROF.
How many guilty government officials mentioned in the above report got promotions , continuing in service making it easy for them to tamper evidences ?
What action against public servants , officials who are hushing up the case & protecting the guilty ?
The Petitioner has sent many letters / appeals / petitions to supreme court of india & other courts through e-mail , DARPG website & through regular mail requesting them to consider those as PILs. But none of them were admitted , even acknowledgement for receipts were not given. See How duty conscious ,our judges are & see how our judges are sensitive towards life , liberty of citizens , commonmen & see how careless our judges are towards anti national crimes , crimes worth crores of rupees.
That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
(ii) Hereby , I do request the honourble supreme court of india to legally prosecute guilty officials mentioned in the above said report.
(iii) Hereby , I do request the honourble supreme court of india to uphold the constitution of india , to protect natural resources and to protect the constitutional rights of all Indian citizens including mine.
(iv) Hereby , I do request the honourble supreme court of india to immediately keep all government officials mentioned in the above said report under suspension from service & to take necessary steps to protect all type of evidences.
(v) to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Date : 04th November 2015………………………………Filed By : Nagaraja.M.R.
Place : Mysuru India……………………………………Petitioner in person
PIL - Bhopal Gas Leak
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R ,
IN THE MATTER OF
NAGARAJA . M.R ,
editor , SOS e Clarion of Dalit & SOS e Voice for Justice ,
# LIG 2 , No 761 , HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.....Petitioner
Versus
Honourable Chief Seceretary , Government of Madhya Pradesh & Others
....Respondents
PETITION UNDER ARTICLE 21 , ARTICLE 14 – 16 , ARTICLE 21 , seeking Justice , compensation and for issuance of WRIT of MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
# LIG 2 , No 761 , HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.....Petitioner
Versus
Honourable Chief Seceretary , Government of Madhya Pradesh & Others
....Respondents
PETITION UNDER ARTICLE 21 , ARTICLE 14 – 16 , ARTICLE 21 , seeking Justice , compensation and for issuance of WRIT of MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
Justices of the Supreme Court of India. The Humble petition of the Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
Our whole hearted respects to honest few in judiciary , parliament & public service. Our salutes to them , due to honest efforts of those few noble persons only at least democracy is surviving in India.
A . "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , public servants & Judges. Some of the below mentioned judges fall among the category of churchill’s men – Rogues , Rascals & Freebooters.
A . "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , public servants & Judges. Some of the below mentioned judges fall among the category of churchill’s men – Rogues , Rascals & Freebooters.
B . As per the preamble of the constitution of India all the people , all Indian citizens are equal in every respect , equally entitled to justice , equally responsible to uphold constitution . Only People , Citizens of India are supreme No Judges , No Ministers , etc are supreme. Judges , ministers , president etc are all public servants constitutionally mandated to SERVE the public , NOT to master over them. Even after 69 years of independence these judges , ministers have not come out of colonial hangover instead become worse treating general public as their servants.
C . Union carbide plant ( UCIL ) was unsafe and indulged in unsafe work practices , maintenance was inadequate.
D . Even a local journalist through a news publication publicly brought to notice of authorities concerned perils of Bhopal gas plant , years before the Bhopal gas leak , industrial accident occurred . He forewarned.
E . Inspite of forewarning Madhya Pradesh Industries , Factories Inspectorate departments failed to take adequate steps , allowed the UCIL plant to run uninterrupted.
F . Inspite of forwarning Madhya Pradesh state pollution control board failed to take adequate steps , allowed the UCIL plant to run uninterrupted.
G . Madhya Pradesh state government side by side with UCIL management is equally responsible for the Bhopal gas leak case. It failed to do it’s statutory duties and to prevent disaster in time.
H . Even after the disaster took place , Madhya Pradesh state government and Government of India instead of legally prosecuting Mr.Warren Anderson ( Head of UCIL) who was in custody , illegally , brazenly helped him to run away from law.
I . Even after the disaster took place , Madhya Pradesh state government failed to legally arrest and prosecute union carbide top executives.
J . Union Carbide USA head quarters wanted lucrative Indian market , cheap Indian resources , cheap Indian labor , lax Indian laws but didn’t have the decency to respect Indian laws.
K . Government of India , Government of Madhya Pradesh failed to seek extradition of Mr. Warren Anderson and other top Union Carbide executives from USA. They failed to get right cost & compensation from US Corporate giant & US government.
L . The government of USA and Supreme Court of USA is practicing double standards , just see the example of BP oil spillage in USA territory by a UK based corporate giant. The government of USA & Supreme Court of USA extracted huge cost & compensation from UK based British Petroleum , for American citizens suffering due to the oil spillage. The arrogant Government of USA & Supreme Court of USA shamelessly perceives lives of Americans precious and others as cheap. Our spineless Indian government , supreme court of india bows , kow tows before them.
M . The government of India & Government of Madhya Pradesh who are themselves culprits alongwith UCIL to cover up their own crimes , to favor US multinational enacted a new law curtailing the legal rights of Bhopal gas victims , Indian citizens.
N . Shamelessly Supreme Court of India , went a step further Then Chief Justice of India Justice Ahmadi & his bench colleagues diluted the penal charges of prosecution.
O . Till date neither Union Carbide nor DOW who took over the management of Union Carbide has paid right cost & compensation nor they have cared about the clean up of Bhopal gas disaster site till date even after decades.
P . When Government of USA & Supreme Court of USA does not respect Indian Laws , Indian citizens why should American Citizens , American Corporations , American Interests in Indian territory should be protected ?
2. Question(s) of Law:
Are Multi national Corporations & it’s top executives above law ? Is the acts of our ministers , judges in aiding a criminal , fugitive to run away from law just , legal ?
3. Grounds:
Requests for equitable justice , legal prosecution of guilty under ARTICLE 21 , ARTICLE 14 – 16 , ARTICLE 21 , seeking Justice , compensation and for issuance of WRIT of MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
4. Averment:
Give what action has been taken against culprits involved in Bhopal gas leak case till date.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
(ii) Hereby , I do request the honourable supreme court of india to legally prosecute Madhya Pradesh state government industry department , factories safety & Inspectorate department and MP Pollution Control Board officials for criminal negligence of duties.
(iii) Hereby , I do request the honourable supreme court of india to legally prosecute the MP state government & Indian government ministers and officials who helped fugitive Mr. Warren Anderson to run away from Indian law.
(iv) Hereby , I do request the honourable supreme court of india to legally prosecute the MP state government & Indian government ministers and officials who failed to seek extradition of Mr. Anderson and other UC top executives from USA.
(v) ) Hereby , I do request the honourable supreme court of india to legally prosecute the MP state government & Indian government ministers and officials who failed to extract appropriate compensation , costs from Union Carbide or from DOW or from counter guarantor Government of USA till date.
(vi) Hereby , I do request the honourable supreme court of india to declare void , annul the Bhopal Gas Victims Act and related enactments , government orders passed by both Government of India and Government of Madhya Pradesh which curtails the constitutional rights of Bhopal gas leak victims.
(vii) Hereby , I do request the honourable supreme court of india to legally prosecute former chief justice of india Mr. Ahmadi & his bench colleagues who diluted the prosecution charges against union carbide and it’s top executives.
(viii) Hereby , I do request the honourable supreme court of india to order DOW Chemicals to pay the appropriate cost & compensation towards Bhopal gas leak disaster.
(ix) Hereby , I do request the honourable supreme court of india to order Government of USA , Supreme Court of USA to respect Indian Law if they want reciprocal respect. To order government of USA & Supreme Court of USA to extradite former top executives of Union Carbide to India , to ensure appropriate payment of cost , compensation in the said case as government of USA happens to be a counter guarantor.
(x) To declare President of USA & Chief Justice of USA as criminals for their double standards , for aiding perpetrators of man slaughter at Bhopal .
(xI) To order for CBI investigation into assets of Mr.Ahmadi , ministers , government officials who helped union carbide & it’s executives.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Date : 07th November 2015………………………………Filed By : Nagaraja.M.R.
Place : Mysuru India…………………………………………..Petitioner in person
PIL - RPG Telecables Scam
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R
editor SOS e Clarion of Dalit & SOS e Voice for Justice
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
Cabinet Secretary ( Telecommunications) Government of India & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the
Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
"Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for
power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt public servants.
2. Eventhough , certain PIJF companies were previously found to be involved in illegal practices , CPIO of DOT / BSNL is hiding information . Thereby , he is trying to shield criminals.
3. By this action CPIO of DOT / BSNL is aiding criminals.
2. Question(s) of Law:
DOT / BSNL has paid crores of rupees to PIJF Telecable manufacturers towards purchase of cables. The money is from public exchequer , people’s money . That public money is swindled by cable manufacturers with tacit support of DOT / BSNL officials. Why no prosecution of DOT / BSNL officials & cable manufacturers ? are they above law ?
DOT / BSNL has paid crores of rupees to PIJF Telecable manufacturers towards purchase of cables. The money is from public exchequer , people’s money . That public money is swindled by cable manufacturers with tacit support of DOT / BSNL officials. Why no prosecution of DOT / BSNL officials & cable manufacturers ? are they above law ?
3. Grounds:
Requests for equitable justice , Accountability for public money worth crores of rupees.
4. Averment:
Private companies in their greed for money are violating norms in league with public officials. They have caused loss to the public exchequer.
Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
The Petitioner has sent many letters / appeals / petitions to supreme court of india & other courts through e-mail , DARPG website & through regular mail requesting them to consider those as PILs. But none of them were admitted , even acknowledgement for receipts were not given. See How duty conscious ,our judges are & see how our judges are sensitive towards life , liberty of citizens , common men & see how careless our judges are towards anti national crimes , crimes worth crores of rupees. That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
(ii) to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Kindly read full details at following web page :
CORPORATE CRIMES RPG CABLES LIMITED
Dated : 13th June 2015……………………………………….. FILED BY: NAGARAJA.M.R.
Place : Mysuru , India………………………….. PETITIONER-IN-PERSON
Place : Mysuru , India………………………….. PETITIONER-IN-PERSON
PIL - Killer Noodles , Medicines of India
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R
editor SOS e Clarion of Dalit & SOS e Voice for Justice
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
Chief Secretary Government of Karnataka & Principal Secretaries , Food & Health , Government of India
....Respondents
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the
Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
"Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for
power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt public servants.
2. Eventhough certain food products are banned & certain medicines are banned in developed nations , still they are permitted to be manufactured & sold in india.
3. Eventhough certain food products & medicines are manufactured within stipulated limits of ingredients in developed nations , the multinational companies cross those limits in india.
2. Question(s) of Law:
Are the lives of millions of Indians cheaper , dispensable ? Are the lives of Indians cheaper than the lives of white skinned people in developed nations.
Are the lives of millions of Indians cheaper , dispensable ? Are the lives of Indians cheaper than the lives of white skinned people in developed nations.
3. Grounds:
Requests for equitable justice , protection of indian’s lives & prosecution of guilty public servants who permitted manufacturers / sellers of killer noodles , killer colas & killer medicines.
4. Averment:
Multinational companies , private companies in their greed for money are violating norms by established international bodies and making money by slowly killing people , by their fake food products & fake medicines. Our own corrupt central government & state government public servants are giving licenses , clearances to those companies to carry on their illegal businesses. Who will bear the cost of loss of lives , damages to health of gullible public , hapless Indians ?
Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
The Petitioner has sent many letters / appeals / petitions to supreme court of india & other courts through e-mail , DARPG website & through regular mail requesting them to consider those as PILs. But none of
them were admitted , even acknowledgement for receipts were not given. See How duty conscious ,our judges are & see how our judges are sensitive towards life , liberty of citizens , commonmen & see how
careless our judges are towards anti national crimes , crimes worth crores of rupees. That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases
to perform their duties & to answer the questions.
(ii) to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Kindly read full details at following web page :
Dated : 11th June 2015…………………………. FILED BY: NAGARAJA.M.R.
Place : Mysuru , India…………………………… PETITIONER-IN-PERSON
7 April 2015, India: OK, here’s a question: Can you and I make a profit of about Rs 90 lakh by selling a plot of government land before it is transferred to us? Can we sell it to a known crook and swindler at the height of his career? Answer: If we are common people, then no. But if we are high court judges, then yes, we can not only do it, but we can also be elevated to the position of a Chief Justice! Come, let us learn from Justice Laxmi Kanta Mohapatra, Chief Justice Of Manipur, how it is done.
Like all our High Court and Supreme Court judges, Justice Laxmi Kanta Mohapatra (http://hcmimphal.nic.in/judges.html) is immune to the laws of the land. When he was a High Court judge in Odisha, Mr. Mohapatra accepted a bribe of about Rs 90 lakh through a shady land deal with a chit-fund fraudster named Pradeep Sethy (http://tinyurl.com/pradeep-sethy), whose Artha Tatwa Chit Fund scam in Odisha was estimated by Supreme Court to be Rs 4,600 crore – roughly twice the size of the infamous Saradha scam in West Bengal. (Others put it at Rs 20,000 crore.) In this unusual sale of land, the Cuttack Development Authority actively cooperated with Justice Mohapatra. In connection with this same land transaction, Advocate General Ashok Mohanty was arrested last year (http://tinyurl.com/AG-ashok-Mohanty), but Laxmi Kanta Mohapatra — then the Acting Chief Justice of Manipur High Court — went on to be elevated to Chief Justice on 10th July 2014, well after the scandal became well-known in the public domain and the media! Isey kehte hain Independence Of Judiciary!
One however wonders about the dynamics of how this particular elevation happened. Did somebody bribe the members of the Supreme Court collegium on behalf of the hon’ble Mr Mohapatra? Or did one of the collegium judges highly recommend Mr Mohapatra as, relatively speaking, the cleanest judge available for the position of CJ of Manipur? Did this brother judge convincingly argue that a little bit of shady dealings, stamp duty evasion and money-laundering should be considered acceptable among the brotherhood of judges? Or was it the collegium’s considered decision that, since Justice Mohapatra was only exploiting well-known legal loopholes in Odisha’s Stamp Act and other laws, it was legally acceptable?
(For the record, the government of Odisha was in the habit of making such discretionary land allocations to high court judges and others. This facility was widely known and exploited for years by VVIPs. (Read http://tinyurl.com/Odisha-land-allotments. After this scandal, in December 2014, the government seems to have decided to mend its ways (http://tinyurl.com/Odisha-cancels-allotments). RTI Activist Jayanta Kumar Das, in his Letter Petition (http://tinyurl.com/Jayanta-Das-Letter2CJI) to Chief Justice of India on 18th March 2015, presented a blow-by-blow account of Justice Laxmi Kanta Mohapatra’s wrongdoings, with supporting evidence, and is awaiting some action. Tall hopes? Maybe. Wait and watch.
HIGHLIGHTS:
- On 11.10.2006, in his capacity of a judge of Odisha High Court, Laxmikanta Mohapatra applied for a government plot in Markata Nagar to Cuttack Development Authority (CDA). Within seven months, CDA allotted a 4000 square foot plot in Sector-11 in Bidanasi project area, Cuttack) and instructed him to pay Rs 9.8 lakhs. Having an ancestral property in Cuttack district (Stoney Road, Post- Candinichowk, P.S- Lal Bag, Dist – Cuttack), Mr Mohapatra was actually not eligible to get a government plot from CDA. So, his letter was evasively worded, stating that neither he nor his family owned land at Markata Nagar. After taking possession in July 2007, lthough the allotted plot was not yet transferred in his name, Laxmikanta Mohapatra proceeded to build a double storied building on the allotted plot. Read documents: http://tinyurl.com/Judge-gets-land
- within four years of the allotment of government land to him, Justice Laxmikanta Mohapatra transferred the possession of this plot for a consideration of Rs one crore. The land was “sold” by means of a simple affidavit on ten-rupees stamp paper to Pradeep Kumar Sethy, the chit-fund baron. The mode of payment was not mentioned (Cheque? Cash? Any other means? Who knows?) The affidavit said, “I have taken over the possession of the plot on 23.7.2007 and lease deed has not been executed in my fabour (sic!) till date. The plot is double storied building is existing on the plot”. As Justice Laxmi Kanta Mohapatra was not the owner of this plot, he had no right to execute and register a sale deed or to transfers this plot in favour of any party. Indeed, no law in India or in Odisha empowers anybody to transfer or sell a property to any party by means of a mere affidavit… but that is precisely what this learned judge did! Read http://tinyurl.com/Sethy-buys-from-Judge
By means of this unlawful transaction, Justice Laxmikanta Mohapatra enabled chit fund operator Pradeep Kumar Sethy to do him an undue favour of about Rs 90 lakh. Simultaneously, the honourable judge broke the law to avoid paying at least Rs 5 lakhs stamp duty and registration. And last but not least, this person who is now Chief Justice of Manipur committed offences of money-laundering by accepting and creating black money from the chit fund operator – possibly in order to provide him some undue favours.
Cuttack Development Authority aided and abetted this unlawful transaction. It transferred this plot in the name of Sri Pradeep Kumar Sethy vide its Letter No.8098/CDA/Dated 23.4.2011 based on Justice Laxmikanta Mohapatra’s affidavit and a request letter written by Pradeep Sethy.
- Meanwhile, lakhs of people in Odisha started raising their voice against Artha Tatwa Chit Fund Company, its Chief Managing Director Pradeep Sethy and other directors for the nonpayment of their matured fixed deposits in different branch offices of the company. Anticipating his arrest, Pradeep Sethy approached the Advocate General of Orissa High Court Sri Ashok Mohanty for an undue favour, and a deal was struck.
Barely one and a half years after the land was transferred in his name, Pradeep Sethy made another affidavit dated 03.10.2012 transferring the land plot for a consideration of Rs 1,00,01,000/- (Rupees One Crore and One Thousand) only. Again, the mode of payment was not mentioned (Cheque? Cash?). This affidavit suggests, as CBI mentions in its chargesheet, that Advocate General Ashok entered into this transaction as a consideration for giving undue favours in Orissa high Court. Read http://tinyurl.com/Sethy-sells-to-AG
- A case was registered against Pradeep Sethyand his staff by Balasore Town Police for cheating innocent investors (Balasore Town P.S. Case No. 352 of 2012 dated 06.10.2012, U/S 420/506/34 I.P.C etc). Pradeep Sethy applied for anticipatory bail before Odisha High Court, on 09.10.2012 (Annexure- 21). Thanks to Advocate General Ashok Mohanty, this anticipatory bail was allowed. Pradeep Sethy and all his associates were released on anticipatory bail without production of the case diary on 18.10.2012.
- Soon afterwards, Cuttack Development Authority took steps to ensure that the bribe paid to Ashok Mohanty reached him, i.e. the transfer of the land to Ashok Mohanty, who was possibly anxious that the land plot may be seized by the authorities, along with other assets belonging to Sethy. So, by a form-letter dated 8th February 2013, it summoned Sethy to appear in person on the same day between 2 and 4 pm with necessary documents for signature verification and verification of his identity. It is not know by what mode this letter was delivered, and so one may presume that an urgent hand-delivery was made, possibly by the Advocate General himself! Read http://tinyurl.com/CDA-writes-to-Sethy
- In its preliminary charge sheet in the Artha Tatwa Chit Fund Scam Case, CBI states that the consideration of Rs one crore to Justice Laxmi Kanta Mohapatra came out of misappropriated funds from the Artha Tatwa company accounts. It says, “As per records, accused P.K. Sethy had purchased said building from Justice L.K. Mohapatra for consideration of Rs. 1,00,00,000/- during April, 2011 out of the money flown from the accounts of AT Group and later, transferred the said plot to Asok Mohanty.” You may read the relevant paragraphs of the CBI chargesheet here: http://tinyurl.com/CBI-chargesheet-Artha-Tatwa
- The CBI chargesheet says: “Investigation disclosed that accused Asok Mohanty was the Advocate General of Odisha during the period from June, 2009 to September, 2014. He had purchased a building located at plot No. 11-3B/1332, Category-B, measuring 4000 sqft in sector -11, Bidanashi, Cuttack from the accused Pradeep Kumar Sethy. As per records, accused P.K. Sethy had purchased said building from Justice L.K. Mohapatra for consideration of Rs. 1,00,00,000/- during April, 2011 out of the money flown from the accounts of AT Group and later, transferred the said plot to Asok Mohanty. Though the sale transaction was shown to be of Rs 1,01,00,000/- but in fact an amount of Rs. 70,00,000/- only has been paid by accused Asok Mohanty to accused P.K. Sethy. During the course of investigation two money receipts were seized from the official premises of accused Asok Mohanty indicating the payment of Rs. 1,01,00,000/- towards consideration. The said money receipts bear forged signatures of accused Pradeep Kumar Sethy. During the relevant period of time i.e. during October, 2012, when the above transaction took place, agitations were going on in Odisha against the accused Pradeep Kumar Sethy and against AT Group by the depositors which is evident by registration of the 1st FIR against the AT Group on 06.10.2013 following which the accused P.K.Sethy had moved an anticipatory bail petitions before the Hon’ble high Court on 09.10.2012 and during the relevant time the present accused AG entered into a criminal conspiracy with the said Pradeep Kumar Sethy and in furtherance thereof extended his hospitality towards the accused P.K.Sethy as a result of which the anticipatory bail was granted to the accused P.K.Sethy on 18.09.2012. During the course of investigation, two separate agreements for sale of the said plots were recovered/seized from the possession of accused Asok Mohanty. In the said two agreements, the consideration agreed upon was Rs One Crore and One Lakh which is contrary to the consideration mentioned in the affidavit dt. 03.10.2012 submitted to the Cuttack Development Authority for transfer of ownership of the said property. It may be mentioned here that in the said affidavit dt. 03.10.2012, the consideration amount is mentioned as Rs. One Crore and One Thousand. Thus, it is clear that the accused Asok Mohanty misappropriated the remaining amount of Rs. 31 lakhs that he was supposed to pay to the accused Pradeep Kumar Sethy.”
- Significantly, CBI was able to investigate the role of Advocate General Asok Mohanty… but do they have the authority or the mandate to investigate the role played by Justice LK Mohapatra? No. And therefore, one is left wondering whether Justice Mohapatra’s role was as innocuous as the CBI chargesheet makes it out to be!
Final outcome:
- Lakhs of citizens of Odisha – swindled. Money not yet recovered
- Chit fund swindler Pradeep Sethy – arrested & chargesheeted by CBI.
- Advocate General Asok Mohanty – ditto… and he lost his job.
- Odisha High Court Judge Laxmi Kanta Mohapatra – got to keep Rs 90 lakhs that came from the savings of chit fund investors… and he was elevated to the position of Chief Justice of Manipur after the scandal.
Will somebody please rap the Supreme Court collegium on the knuckles for this decision, and impeach this honourable Chief Justice of Manipur? If this is not done, one worries that before his scheduled retirement on 10th June 2016 upon attaining the age of 62, the SC collegium (or Judicial Appointments Commission) may elevate him to the exalted status of a Supreme Court Judge, or even, who knows?Chief Justice of India? You can never tell.
Justice by the backdoor
http://www.vijayvaani.com/ArticleDisplay.aspx?aid=1570
Former CJI Y K Sabharwal - Conflict of interest
https://en.wikipedia.org/wiki/Yogesh_Kumar_Sabharwal
Allegations of Real Estate Operations by his sons[edit]
During the 2006 Delhi sealing drive, the Supreme Court under Sabharwal demonstrated extraordinary zeal in demolishing a slarge number of commercial properties which were illegally running in residential areas. There were very extensive protests every day, and considerable political pressure, due to which demolitions would often be hindered. The court monitored events and regularly reprimanded the Municipal Corporation of Delhi for its tardy progress. As a consequence of the extensive bulldozing of buildings, legal commercial properties, as in the new shopping malls, rose dramatically in price.[4] Particularly, luxury store owners and other upscale businesses were very keen to get into the limited mall floor space.
In May 2007, five months after Sabharwal retired from the bench, the afternoon newspaper Mid-Day brought out a series of articles that presented documents showing that YK Sabharwal's sons, Chetan and Nitin Sabharwal, owned at least four small ventures, most of them oriented towards garment exports, but one in the construction arena. During Sabharwal's tenure as Chief justice, two of these firms suddenly attracted the interest of the very largest players in the shopping mall industry.
The first firm, Pawan Impex, Pvt Ltd, was registered for some time at Justice Sabharwal's official bungalow in the heart of Delhi, and later at his private house. Having the firm registered at his government-furnished house may have been illegal.[5] In a newspaper editorial on Sept 2, 2007, Justice Sabharwal has said that he asked his sons to shift the registered address as soon as he found out about it,[6] but in an interview recorded by Mid-Day in April 2007, after the shift, he claims complete ignorance about the matter.[5]
More damaging is the fact that Pawan Impex, which had remained with a capitalization of 0.1 million Rs. since its founding in 2002, suddenly attracted the interest of Kabul and Anjali Chawla, owners of the large and rapidly growing real estate firm Business Park Town Planners (BPTP)[7] which had promoted large malls like Park Centra (Gurgaon), Next Door (Faridabad), and the Parklands Shop-In Park (North Delhi). In June 2006, at the peak of the Supreme Court interest in the 2006 Delhi sealing drive, the Chawla's invested in Park Impex, raising the Share Capital 300 fold to Rs. 30 million, with equal shares between the original promoters and the Chawlas.[8][9] Two months later, in August, the company obtained a loan of Rs. 280 million by a bank which happens to be a tenant of a BPTP property. These allegations appear to be well documented in a set of papers released by the Campaign for Judicial Accountability[10] and were not addressed in Justice Sabharwal's public response,[6] though he did mention that his sons were creating an IT Mall. After the partnership with BPTP in June 2007 Pawan Impex purchased 4 acres (16,000 m2) of land in NOIDA on which this IT Mall is being constructed; Mid-Day reports it to be a Rs. 560 million project with 300,000 sq ft (28,000 m2). saleable floor area.[11]
A second firm, Harpawan Constructors, equally unknown, had also been promoted by the brothers. In October 2005, the promoters of Filatex India, a polyester yarn firm with a turnover of Rs. 3 billion in FY 2007, Purshottam and Madhu Sudan Bhageria, also the owners of real estate firm Fargo Estates, invested in Harpawan. Subsequently, the Bhagerias announced plans for developing the Square One, a mall devoted to luxury brands in Delhi. Justice Sabharwal has said that Purshottam Bhageria was his son's childhood friend, and that Harparwan Construction, despite its name, has not made any real estate or other investments.[6]
The business of Chetan and Nitin expanded dramatically after 2005. Besides setting up several garment manufacturing factories, they have embarked on a massive real estate programme in NOIDA.
Possibly the largest project for Pawan Impex is the Rs. 560 million IT Mall being constructed in Noida. In the application to construct this mall, they had given the turnover and business of their company as "Nil". Their application for constructing this mall was approved rather mysteriously, given that in the application they had declared their company to be "Nil turnover" and "Nil business".[5] An earlier applicant, Softedge Solutions, had been rejected on the ground that they could not satisfactorily answer questions about their previous experience in IT and their technical tie up. But Pawan Impex represented by Chetan Sabharwal with Nil business, no previous track record in IT and no technical tie up, managed to obtain permission.[5]
Conflict of Interest charges[edit]
Whatever the facts of the case, it is widely felt that Justice Sabharwal's being active in such decisions when his sons were even partly involved in the Delhi real estate business lacked propriety, and that he should have recused himself from these cases. To the contrary, the Outlook (magazine) printed a report claiming that he had "called for and dealt with the sealing of commercial property cases in March 2005, though it was not assigned to him.".[5]
The actions have been condemned as being at best improper and at worst an attempt "to benefit his sons who entered into partnerships with shopping malls and developers of commercial complexes".[12] Former Solicitor General KK Sud called this behaviour "the height of indiscretion."[13]
In terms of the content of the charges, the most damaging aspect is the participation of the shopping mall construction giant BPTP in his son's export-import business. Both the Chawla's were on the board of the firm by early 2005, around the same time that Sabharwal started taking interest in the demolition drive. What is surprising is that while Justice Sabharwal in his justification[6] addresses the other two (lesser) charges in some detail, but he is completely silent about the BPTP connection.
Jail term for two Journalists, cartoonist, publisher[edit]
In September 2007, four Mid-Day journalists were sentenced to prison by the Delhi High Court for contempt of court (making such allegations about an ex-judge).[14] The scribes said: "We stated facts in our stories. (in the articles relating to former Chief Justice of India Y K Sabharwal) and that is why we should not be hauled up for contempt. The laws in the country are outdated." The contempt laws in India do not rely on truth as the primary test for judging contempt. The columns were also somewhat tongue-in-cheek, accompanied also by a cartoon (the cartoonist has also been sentenced to four months in jail).
Justice R S Sodhi and Justice B N Chaturvedi of the Delhi High Court, in their judgement, said: "We feel, in this peculiar case, the contemnors have tarnished the image of the highest court and the sentence of four months' imprisonment would serve the justice." M K Tayal, senior journalist, said, "The judges did not go into the merits of the argument. They did not apply their minds while delivering the judgement.".[15] "The Supreme Court in its judgement has clearly laid down the Laxman Rekha which we feel the publications have crossed." (The Laxman Rekhais a Ramayanic reference to a line that should not be crossed). However, the defendants had already processed their bail requests from the Supreme Court, and they were immediately released on bail. Tayal and three others are no more associated with Mid Day. It appears that the management of the newspaper compromised with Sabharwal and BPTP. Tayal, a former Indian army officer, objected Mid Day's policy of refraining from exposing more about the dealings of ex-CJI. Mid Day's MD Tariq Answari had written a note regarding the newspaper not carrying any more article on Sabharwal.
About the judgement, ex-law minister Shanti Bhushan stated that Parliament had in 2006 amended the Contempt of Courts Act to say that "if the allegations against a judge were found to be true, then they would not be considered contemptuous". In view of this, the judgement, he said, may be "only aimed at terrifying the media and an attempt to curb truthfulness."[12]
RELIANCE INDUSTRIES LIMITED - WHERE IS ACCOUNTABILITY?
Dear mukesh & anil ambani,
The reliance industries has always got a favourable treatment from the state & central governments.there are allegations that ,
1.years ago, the central government gave import concessions for import of certain raw materials of textile sector ,which hugely benefitted the P.F.Y & TEXTILE projects of your's ie reliance industries.
2.the O.N.G.C which has painstakingly surveyed the oil & gas reserves & prepared a list of lists,gave that list & you got godavari basin oil & gas project from the government .O.N.G.C could have developed it & earned millions.
3.few months back you were charged both by the government & cellular operators (GSM) that you are giving S.T.D & ROAMING FACILITIES to your reliance phone subscribers.your's was only a W.L.L. they even claimed that you are misusing a legal loophole & causing crores of losses to the government & other GSM operators. however while the issue was before the T.R.A.I, the trai legalized your actions by announcing unified licence for telecom operators.
4.now you are charged by the government of re-routing ISD CALLS as local calls,thereby causing crores of losses to the government & BSNL.this time also you may get the reprieve from the government. the government ,if a commonman does not pay his electric bills in time slaps interest & cuts down the electric supply immediately. however the same government ,even if your company has been alleged of causing crores of rupees losses to the government & other players, always enacts favourable laws for you like a SANTA CLAUS.
WILL YOU PLEASE CLARIFY mr.mukesh ambani & mr.anil ambani?
the TRAI announced unified licence regime in haste that too with retrospective effects.so all the charges against reliance were dropped. in the same vein as unified licence got retrospective effect , why not the government re-imburse the differece amount out of hefty fees collected from other cellular operators ? take the reliance fees as bench mark.anyway , finally commonman is the looser.
10 things you should know about the Reliance KG-D6 gas deal
Reacting to Arvind Kejriwal’s presser where he said that an FIR will be filed against Mukesh Ambani, current oil minister Veerappa Moily and former oil minister Murli Deora over the gas pricing formula, Moily said that we should sympathize with his ignorance since kejriwal doesn’t know how the government functions. He reiterated that the norms were being followed and there is a system for fixing prices.
ALSO READ: Kejriwal orders FIR against Mukesh, Moily
So who is actually ignorant in this case? Were the norms actually followed or has Kejriwal raised some valid points.
ALSO READ: T N Ninan: One more!
Here is a refresher and ready reckoner on the entire KG D6 gas basin controversy.
1) What is KG D6 basin?
Krishna Godavari (KG) Basin is spread across 50,000 sq km in the Krishna River and Godavari river basins near the coast of Andhra Pradesh. The site Dhirubhai-6 (D6) is where Reliance Industries discovered the biggest gas reserves in India. In government records, the 7,645 sq km block is known as KG-DWN-98/1. The KG basin is considered to be the largest natural gas basin in India.
2) How did Reliance Industries get into KG basin?
Government of India opened up hydrocarbon exploration and production (E&P) in the country to private and foreign players in 1991. Small and medium sized blocks were opened up in this round which was followed up by giving out bigger blocks in 1999 as per the New Exploration and Licensing Policy (NELP). Through NELP, Reliance bagged the rights to explore the D6 block.
3) Did government have a role after the block was handed over?
Since all mining resources belong to the people of India, government monitors the exploration and production of these. In the case of oil and gas sector, government enters into contractual relationship with the private player through a Production Sharing Contract (PSC). The PSC lays out roles and responsibilities of all parties, specifies the detailed procedures to be followed at different stages of exploration, development and production. It also specifies the cost recovery and profit sharing in the contract. Directorate General of Hydrocarbon (DGH) monitors the PSC. A PSC was signed between the government of India (GOI) and undivided Reliance Industries and its minority partner Niko Resources (10 per cent stake) for exploration and production of oil and gas.
4) What happened to KG D6 when the Reliance group split?
Even before production could start from the KG D6 wells, Reliance group was split vertically between the two brothers, with the gas business of Reliance Industries remaining with Mukesh Ambani, the elder brother. The brothers fought over this huge reserve of gas even though it was not theirs in the first place. The very first line of a production sharing contract clearly says that “By virtue of article 297 of the Constitution of India, Petroleum is a natural state in the territorial waters and the continental shelf of India is vested with the Union of India”.
The brothers while splitting their father’s empire split the gas reserves too. A family pact between the two brothers, which was never made public till the issue blew out of proportion, was at the core of the dispute. Anil Ambani owned RNRL (Reliance Natural Resources Ltd) citing the agreement by the brothers in 2005, claimed it had rights to gas from Reliance KG basin for 17 years at $2.34 per mmBtu (million British thermal unit).The Supreme Court finally settled the matter by saying that ‘the government owns the gas till it reaches its ultimate consumer and parties must restrict their negotiation within the conditions of the government policy’.
Here the role of the government needs to be highlighted. None of the ministries involved in the process, including the oil ministry which Moily now represents, raised the point that the gas reserves belonged to the country and was not a property of the Ambani family. Even the Prime Minister, ManMohan Singh meekly requested the brothers to settle their differences in the interests of the country.
But how did the Ambani brothers arrive at this magic figure of $2.34 per mmBtu when there was no benchmark. In fact ONGC was supplying gas to the government at half the rate.
5) How did Anil Ambani arrive at the price of $2.34 per mmBtu for KG basin gas?
In June 2004, National Thermal Power Corporation (NTPC) invited bids for supply of gas for its 2600 MW power plant in Kawas and Gandhar. Reliance Industries, hopeful of starting production of gas by the time NTPC’s power plant is ready bid for the project and was awarded it as the lowest ‘techno-commercial’ bidder. A Letter of Intent (LOI) was issued to Reliance Industries to supply 132 trillion units of gas per annum to NTPC for 17 years at a price of $2.34 per mmBtu. Anil Ambani used this as a basis for asking gas for his power plant.
6) Why is the NTPC-Reliance dispute all about?
Reliance Industries refused to sign the contract for supply of gas. Jairam Ramesh, the Minister of Power in a written reply to a question in Lok Sabha in 2009 said that “After issuance of LOI, RIL did not come forward to sign the Gas Sale and Purchase Agreement and sought major changes in the draft GSPA.In spite of all the efforts (by NTPC) RIL did not sign the GSPA agreed during the bidding process.”
NTPC dragged Reliance to Bombay High Court on December 20, 2005 but unfortunately the case that has dragged on. The case after nine years is still sub judice. Here again the government's disinterest in protecting the interests of its own PSU has been a matter of much debate.
While NTPC was fighting the case with Reliance in the Bombay High Court, the government referred the matter to an Empowered Group of Ministers (EGoM) in 2007 headed by none other than the current President Pranab Mukherjee, who was then the finance minister. EGoM approved a rate hike of $4.2 per mmBtu of gas. This decision was taken without a single unit of gas coming out of the KG basin.
Reliance grabbed at this opportunity and said that it could not supply gas at a price lower than the mandated price set by the government.
7) How did Pranab Mukherjee arrive at the price of $4.2 mmBtu for gas?
The price was arrived by Reliance through its ‘price discovery mechanism’. As per a Reliance crafter formula, user companies were asked to quote a price which gave them a choice of arriving at a value between $4.54 and $4.75 per mmBtu. Reliance initially forwarded a figure of $4.59 which was later brought down to $4.3, but Pranab Mukherjee claimed victory by announcing a figure of $4.2 per mmBtu.
The brazenness of the entire exercise by the government can be seen from the fact that the objections raised by the Principal Advisor, Power and Energy to the government of India, Surya P Sethi along with the then cabinet secretary were ignored by the government. Surya questions the recommendation saying that nowhere is the cost of production more than $1.43.
8) Is it exploration or exploitation?
A CAG report released in 2011 (initiated in 2007 but delayed due to non-co-operation) on Performance Audit of Hydrocarbon PSCs castigated the oil ministry along with Reliance to retain its entire KG-D6 block in contravention of the PSC. As per the PSC, Reliance should have relinquished 25 per cent of the total area outside the discoveries in 2004 and 2005, but the entire area was declared as a discovery area (after initial objections) and the company was allowed to retain it. Without drilling adequate wells, Reliance kept on claiming that there was potential for petroleum. In CAG’s words this was done to confuse potential/prospectivity with actual discovery of hydrocarbons. The move allowed Reliance to keep the entire area to itself without following the norms laid under the PSC.
In a recent report CAG has said that Reliance moved directly from discovery to commercial production, skipping the intermediate appraisal programme step required as under PSC. CAG asks, without an appraisal programme how did the government and DGH ascertain the amount of gas in the well? And if they did not know how much gas was there in the well, what is the logic and basis of blaming Reliance of hoarding gas. Further, as pointed out by CAG, how did DGH assure itself of reliability of the development plan, production rate and production costs without the appraisal report?
9) Why more investments are bad?
CAG pointed out that as per the PSC, more investments, especially in initial stages would mean more profit for the operator and less for the government. This structure gives inadequate incentive for operators to reduce capital expenditure and provides them with substantial incentives to ‘front-end’ capital expenditure. Share of government profit varies from 85 per cent in a low investment scenario to 5 per cent in a high investment scenario. This explains the case of exaggerated investment made against Reliance Industries.
Incidentally, as pointed out by V Ranganathan of IIM Bangalore in his article in Economic Times, the case of exaggerated investment was first pointed out by Anil Ambani, where he pointed out that investment as per Reliance’s plan is increasing four times but production is expected to only double. Reliance revised its production estimates from 40 mmscmd (million metric standard cubic metres per day) to 80 mmscmd while increasing its investment from $2.4 billion to $8.8 billion.
10) How was the new pricing formula arrived at?
Former RBI governor C Rangarajan came out with a formula which has been followed nowhere in the world, which has resulted in Reliance (and other players too) getting a price on import parity basis. Surya Sethi, former Principal Adviser, Power and Energy, Government of India does not mince words when he asks the Prime Minister in an open letter [Read here] not to burden the nation with Rangarajan Committee’s madness that only benefit a select few.
Conclusion
Sethi’s open letter to the Prime Minister sums up the entire issue when he points out that the CAG’s findings reveal how crony capitalism benefited RIL. The pre-qualification norms were diluted to ensure RIL qualified, the claimed size of gas discoveries, the field development plans and the investment outlays proposed escaped rigorous due diligence says Sethi. Above all, the company’s commitments under the PSC on gas output were not enforced.
The entire episode stinks of anything but natural gas. While Moily may claim that system was followed, there is enough evidence out there that says otherwise.
THE MEGA 4G SCAM BY GOVERNMENT AND RELIANCE
After the 2G spectrum allocation scam of the UPA Government, another major telecom scandal in the allocation of 4G spectrum (BWA) has come to light by the recent CAG report. In fact, AAP leader and senior lawyer Prashant Bhushan has filed a PIL in the Supreme Court seeking cancellation of Reliance Industries’ telecom license and a through criminal investigation. Supreme Court had issued notice to Government and Reliance on that petition on 9th May 2014.
The factum of the scam is this. The UPA Government in March 2013 allowed a back-door entry of Reliance Jio Infocomm into voice telephony in violation of the judgment of the Supreme Court in the 2G case. This was done at the price discovered in 2001 of Rs 1,658 crores for a pan-India licence, which is the same price that was struck down by the Supreme Court in the 2G judgment because of having caused a huge loss to the public exchequer.
During May-June 2010 the auctions for 3G and 4G were concluded. The 3G auction fetched Rs 16,750.58 crore for 5+5 MHz spectrum in 2100 MHz (or 2.1 GHz) band. Thus, per MHz price worked out to be Rs 1,675 crore. Immediately, after the 3G auction, the 4G auction began which fetched Rs 12,847.77 crore for 20 MHz pan-India license in the 2300 MHz (or 2.3 GHz) band. This works out to be Rs 642.39 crore per MHz. This was so because all documents stated that 4G spectrum was for data services only, whereas 3G spectrum can be used for both data and voice telephony.
Infotel Broadband Services Pvt Ltd (IBSPL) emerged as the only company to have acquired pan-India 4G spectrum. IBSPL had an internet license since November 2007 and had just one subscriber with revenue of Rs 16.28 lakhs during 2009-10, and its authorized share capital was Rs 3 crore and the paid up capital was Rs 2.51 crore. Infotel Digicomm Pvt Ltd (IDPL) held 99.99% share of the IBSPL at the time of submission of application in March 2010.
Within hours of completion of 4G auction on 11.06.2010, IBSPL increased the authorised share capital from Rs 3 crore to Rs 6,000 crore. On 17.06.2010, the company authorized its Board of Directors to allot 475 crore equity share of Rs 10 each to Reliance Industries Ltd (RIL) and 25 crore equity share of Rs 10 to Infotech Digicomm Pvt Ltd (IDPL) aggregating to the equity capital of Rs 5,000 crore. On the same day, the company also decided to change from a private company to Public Limited Company (Infotel Broadband Services Ltd). Thus, the company within a week of winning the 4G spectrum disposed off 95% shares to RIL while 5% was retained by IDPL. Much later in March 2013, the company was renamed as Reliance Jio Infocomm Pvt Ltd.
CAG has found that the Government did not protect its interest at the time of framing eligibility criteria for the 4G auction. It allowed participation of internet (ISP) licensees without ensuring adequate safeguards in terms of net-worth of the companies participating in the auction. It found that while a UAS licensee or even a new company without a license was allowed to participate in the 4G auction, but they had to pass through the test of net-worth in order to become eligible, but no such criteria was specified for the existing internet (ISP) licensees participating in 4G auction. CAG observed that this criterion was important even for ISP-A licensees as they had to participate in the bidding where the reserve price was fixed at Rs 1,750 crore per pan-India license for 20 MHz spectrum in 2.3 GHz band. The only company which won the pan-India 4G license, was an ISP-A licensee, Infotel Broadband Services Pvt Ltd (IBSPL), a HFCL promoted group company. CAG has stated that IBSPL was given the ISP-A license in November 2007, and it had just one leased-line subscribers as on December 2009 and total revenue of just Rs 16.28 lakh for FY 2009-10. The paid-up capital was just Rs 2.51 crore and 99.99 per cent of it was held by Infotel Digicom Pvt Ltd at the time of submission of application for the 4G auction in March 2010. Thus, this company could not be termed as a serious player. And there were no checks in-built in the auction process to eliminate such non-serious players, CAG has observed.
After the company was taken over Reliance Industries, the Government allowed it to provide voice telephony (which was earlier prohibited) without conducting a fresh auction. This was done at the rate of Rs 1,658 crore which was fixed in 2001, and had been struck down by the Supreme Court in the 2G case for causing huge loss to public exchequer. The CAG has now concluded that besides vitiating the auction process, an undue advantage of Rs 22,842 crore was given to RIL at the cost of exchequer. The relevant part of the CAG’s report is reproduced below: -
It was found that the basis of the decision i.e. payment of entry fee of Rs 1,658 crore by ISP licensee for a permission to Pan India provision of mobile voice services using BWA spectrum considered by the DoT Committee, Telecom Commission and the MOC&IT, was primarily intended to fill the gap between the eligibility criterion stipulated for participation in the 3G / BWA auction in 2010 as UAS / CMTS licensees had paid entry fee of Rs 1,658 crore while ISP licensees had paid only Rs 30 lakh.
The DoT Committee, Telecom Commission and the MOC&IT however ignored the fact that the quantum of entry fee i.e. Rs 1,658 crore was basically discovered in 2001 through the bidding for the 4th Cellular licenses. Market conditions since then have changed drastically, and this price needed to be modified to reflect the present value. Neither the DoT Committee / TC under the Chairmanship of the Secretary DoT nor the MOC&IT felt the need for revision of the price discovered in 2001 as the entry fee for UASL in 2013, even when the Hon’ble Supreme Court of India had cancelled 122 licenses granted in 2008 on the basis of the same entry fee stating that it was impossible for them to approve the action of the DoT.
Therefore, by permitting ISPs to provide mobile voice service using BWA spectrum won in 2010 auction post-auction, the government has brought ISP licensees with BWA spectrum at par with UAS / CMTS 3G spectrum winners so far as provision of services are concerned – Voice, Data, etc., and post auction interpretation of such vital nature would appear to be arbitrary, inconsistent and not appropriate. Hence, IBSPL, now Reliance JioInfocomm, appeared to have been accorded undue advantage of Rs 22,842 crore i.e. the difference of the proportionate prices for 20 MHz block size in 2.1 GHz spectrum band (3G spectrum) and 2.3 GHz spectrum band (BWA spectrum) plus the Net Present Value of the entry fee for UASL at the end of FY 2009-10 (Rs 20,653 crore plus Rs 3,847 crore - Rs 1,658 crore). Besides, the sanctity of the entire auction process has been rendered vitiated due to post auction interpretations and interventions after three years. It was therefore no surprise that Reliance JioInfocomm was among the first group of companies which applied for UL immediately after introduction of the scheme and obtained the Letter of Intent (LoI). Had the spectrum blocks been specified and declared as liberalised spectrum blocks i.e. open for all technology / services in the NIA in February 2010, there was no doubt that bidders would have taken informed decision for putting up their bid and the market discovered price would have been significantly different for 3G and BWA spectrum.
Therefore, the Aam Aadmi Party demands the NDA government to immediately cancel the telecom license and allotment of 4G spectrum given to Reliance Industries and also a registration of an FIR by the CBI for a through criminal investigation into this scam involving Reliance Industries and the UPA Government.
Petroleum Ministry document leak: It’s a Rs 10,000 cr scam, claims accused Santanu Saikia; R-ADAG office raided
The dramatic claim comes after police arrested five senior executives from top energy firms and two consultants, including Sanatnu Saikia in the Petroleum Ministry 'leak' case.
A key accused in the corporate espionage case today claimed that it was a Rs 10,000 crore scam that he was trying to uncover as police said documents seized from corporate executives related to “national security” that can attract Official Secrets Act provisions.
Meanwhile, a local court remanded the five arrested corporate executives in police custody till February 24 for further questioning. Delhi Police also conducted raids here and in nearby Noida looking for stolen documents from offices of petroleum companies.
Santanu Saikia, a former journalist, now running an energy consultant running a website, claimed to reporters outside an Crime Branch office that it was a Rs 10,000 crore scam, which he was trying to uncover. “Please quote me,” he said as policemen took him in for interrogation.
Reacting to his claim, Petroleum Minister Dharmendra Pradhan said Saikia was saying such things for covering up his own defence.
“Let him spill out all the information he has. The primary accusation is that somebody stole the papers from the ministry. Police is investigating. Anybody has the right to tell everything to the police,” he said.
Pradhan said police is doing an independent job and everything will be clear after investigation. Law will take its course, whoever they may be, he said when asked about the arrest of executives of private companies.
Producing the five corporate executives arrested yesterday before Chief Metropolitan Magistrate Sanjay Khanagwal, the police said, “National interest was taken for a ride in the case.
“Documents related to national security have also been recovered. This may attract charges under the Official Secrets Act.”
The five–Shailesh Saxena from RIL, Vinay Kumar from Essar, KK Naik from Cairns, Subhash Chandra from Jubilant Energy and Rishi Anand from Reliance ADAG–who were produced in the court in police custody till February 24 for further questioning.
The police told the court that they have to consult the concerned ministries regarding the documents which have been recovered from the possession of the accused and their custodial interrogation was required to confront them with the same.
These five accused were procuring these sensitive documents at the behest of their senior officials, some of whom might be interrogated in the ongoing investigation, police said.
The advocates appearing for these five accused vehemently opposed the police’s plea seeking five days police custody, contending that their clients have been illegally detained since February 18 and 19.
The defence counsel also contended that there was nothing to be recovered from their clients and the police have not told the court regarding the specific allegations against these accused.
With the arrest of these five accused, the total number of arrests in the case rose to 12. Seven others were produced in the court yesterday out of whom four were sent to police custody till February 23 and three were remanded to judicial custody for two weeks.
Police sources said that Subhash Chandra, a senior executive with Jubilant Energy, who was arrested along with four other top officials of energy companies yesterday, was taken to Jain’s office in the morning.
After searching Jain’s office, the police team took him to the Noida office of Jubilant Energy. His office and some other rooms were searched by the police to recover stolen documents.
Office of another petroleum company whose executive was also one of them arrested was also raided by the police. Laptop and computers of the arrested officials have been seized by investigators which would be sent for forensic analysis.
Asked about the issue, Delhi Police Commissioner B S Bassi said, “We have searched places which were necessary for the course of investigation. We may further raid places as our aim is to reach the bottom of the whole thing.”
The police chief also said that investigation is on in the case and it will end only when a charge sheet will be filed.
“We need to know since how long this has been going on and who all benefited from it,” said a senior official.
According to police, all these company executives allegedly received stolen documents which have been recovered by police teams during raids from their establishments.
Saxena is Manager, corporate affairs, Reliance Industries Limited(RIL); Chandra is senior executive, Jubilant Energy; Anand is DGM, Reliance ADAG; Vinay is DGM, Essar and Naik is GM, Cairns India.
They have been booked under IPC sections 120 B (criminal conspiracy) and 411 (dishonestly receiving stolen property).
The case FIR, produced in a local court yesterday said an input on the National Gas Grid for the Finance Minister’s Budget speech of 2015-16 is among the various “secret” documents recovered from the accused.
The office of Reliance ADAG group at a premier five-star hotel here was also raided today by police in this connection.
“We are basically looking for the stolen documents from the establishments linked to the 12 people we have arrested so far. Searches are being conducted at various places in Delhi and NCR,” said a senior police official associated with the probe.
The raids have been confined to this region and not being carried out “across the country” as was speculated, he added.
Sources, meanwhile, said that police had also stumbled upon another module operated separately from the those arrested so far and their ‘area of operation’ was another plum ministry.
They added that a junior level officer and some more corporate executives are under scanner in this connection and arrests are expected by Monday.
KG basin controversy: SC seeks response from Reliance
The Supreme Court on Friday granted six weeks time to Mukesh Ambani's Reliance Industries Ltd (RIL) to respond to the final CAG report, which found alleged irregularities including in payments made to the contractors on drilling of D6 wells at the Krishna-Godavari basin.
The apex court posted the next hearing for March 20 during which it would examine the RIL's response to the CAG report that had sought disallowance of $357.16 million (about Rs 2,179 crore) expenditure RIL incurred on drilling of wells and payments to contractors in KG-D6.
Solicitor General Ranjit Kumar said the Centre can make comments on the Comptroller and Auditor General (CAG) recommendations and findings only after getting the report of the Parliament's Public Account Committee which is examining it.
The order was passed during a brief hearing of petitions filed in 2013 by senior CPI leader Gurudas Dasgupta and NGO Common Cause, challenging the then UPA government decision to double the price of natural gas from $4.2 to $8.4 per mmbtu and seeking cancellation of RIL's contract for exploration of oil and gas from the KG basin.
The third PIL on the issue has been filed by advocate M L Sharma. A bench headed by Justice T S Thakur also allowed Dasgupta and other petitioners to file their response to the NDA government's fresh guidelines which would "supersede" the earlier UPA dispensation's policy on price fixation for natural gas, including that from KG basin, which has been the bone of contention between the Centre and RIL.
The Solictor General on November 14, 2014 had said before the bench, which also comprised justices J Chelameswar and Kurian Joseph, that the 'new domestic natural gas policy' was approved by the government on October 18 raising natural gas price to $5.61 per mmbtu from November 1 and had said that "recommendation of the Rangarajan Committee would not be given effect".
The Rangarajan formula on gas pricing was approved by the previous UPA government. Rangarajan was Chairman, Economic Advisory Council to the then Prime Minister.
In its second audit of RIL's eastern offshore KG-D6 block, the CAG on November 28, 2014 recommended disallowing the company from recovering $279.8 million in cost of three wells as well as a part of expenditure the firm had incurred in area which was improperly declared discovery area.
The CAG, in its report tabled in the Parliament, found irregular payment of $427.48 million to contractors, of which it sought disallowance of at least $77.36 million cost. Earlier RIL's senior advocate Harish Salve had said "he is not happy with the new guidelines (on gas pricing)".
While the Centre has maintained that the issue raised by Dasgupta has been addressed with the new guidelines, advocate Prashant Bhushan, appearing for the NGO, had said several other issues needed to be argued.
He had said that the draft CAG report itself suggested that RIL "hugely over-estimated" the reserves of the KG gas block and other irregularities are cited.
Among the other issues, the NGO has alleged that fraud was committed by RIL requiring government to take back the field and there was a need for court-monitored probe on the issue.
Dasgupta and the NGO had said government should be asked not to make "any further increase" in the price of gas produced by RIL from KG basin.
RIL has refuted the allegation of extraneous consideration for the increase in the gas price from $4.2 to $8.4 per mmbtu for the gas taken from the existing fields like KG D-6 basin. RIL had submitted that the gas output from KG basin has fallen to 8 mscmd against expected 80 mscmd due to "technical reason".
M Veerappa Moily, the then Union Minister of Petroleum and Natural Gas, was also named as one of the respondents in the petitions. The PILs have also sought imposition of penalty on private parties for failure in adhering to commitments.
The petitioners have sought a direction for a thorough audit by CAG of the working of the production-sharing contract (PSC) governing KG block, gold plating by RIL, underproduction by RIL and all related issues.
The former CPI MP had alleged collusion between the government and the company, saying RIL "is holding country's energy security to ransom". He also said that natural resources belong to the citizens and the government.
The Common Cause has supported Dasgupta's arguments and referred to controversial intercepted telephonic conversations between former corporate lobbyist Niira Radia with others to support the allegation of collusion.
The NGO has urged that Centre should wait for the outcome of the two petitions pending before the apex court.
Kejriwal trains his guns on Reliance Industries Limited ( RIL ), wants gas pact cancelled
Kejriwal attributes Jaipal’s ouster to his refusal to carry out Mukesh Ambani’s diktat
India Against Corruption on Wednesday launched a scathing attack on the NDA government as well as the Manmohan Singh government for protecting the interests of corporates, especially Reliance Industries Limited (RIL). It demanded that the government’s contract with RIL be scrapped as the Mukesh Ambani’s company allegedly cut down on production from its KG D6 gas- field to gain huge profits after the proposed gas price revision.
Linking the shifting of Jaipal Reddy from the Petroleum and Natural Gas Ministry to his refusal to follow RIL’s diktat to revise the price before the scheduled deadline of April 2014, IAC leader Arvind Kejriwal said Mr. Reddy was shunted out as he refused to bow to RIL, arguing that a price revision would fetch the company an additional profit of Rs. 43,000 crore.
“Mr. Reddy had prepared a note for the Empowered Group of Ministers (EGoM), in which he mentioned that acceptance of RIL’s demand would mean an additional profit of Rs. 43, 000 crore [to the company]. Most of this gas is used in power and fertilizer production. Increasing the gas price would mean an additional financial burden of Rs. 53,000 crore on the Central and State governments. This would in turn mean higher power and fertilizer prices… or a higher subsidy burden on the taxpayer,” Mr. Kejriwal said in his third expose, after targeting Congress president Sonia Gandhi’s son-in-law Robert Vadra and BJP president Nitin Gadkari.
Mr. Kejriwal, who addressed journalists, along with Supreme Court lawyer Prashant Bhushan, said that in 2006, it was Mani Shankar Aiyar who got the axe and Murli Deora was brought in to allow RIL to increase capex from $2.39 billion to $8.8 billion and to increase the gas price from $2.43 per Million Metric British Thermal Units (mmBtu) to $4.2 mmBtu. “We demand that the contract with RIL for the KG D6 be scrapped immediately and the state-run companies like ONGC be given the block for future production. The government should immediately put in place adequate systems to get full production from the KG D6 at the cheapest prices for the country and its people.”
Mr. Kejriwal said that under RIL’s contract, the company was supposed to sell gas at $4.2 per mmBtu until March 2014. But midway, the company wanted the price increased to $14.2 per mmBtu.
Mr. Kejriwal and Mr. Bhushan alleged that to pressure the government to revise the gas price, RIL had substantially reduced production for over the past one year. The total consumption in the country stood at 156 Million Metric Standard Cubic Metre Per Day (mmscmd). RIL was supposed to produce 80 mmscmd from 2009. However, it was turning out just 27 mmscmd. “Production was being artificially kept low to blackmail the government. They are not just hoarding gas but also forcing various consumers to buy gas from abroad. Gas from abroad costs $13 per mmBtu, and if RIL’s demand for increasing the gas price is accepted, it will lead to the shutdown of several gas-based power plants and an increase in power and fertilizer prices. It will result in Rs. 43,000 crore of additional benefits to RIL.”
Mr. Kejriwal said the drastic reduction in gas production forced many gas-based power plants to shut down or run with a reduced capacity. “Today, power from a gas-based power plant costs Rs. 3 a Kwh (Kilowatt hour). If the gas price is increased from $4.2 to $14.2 as demanded by RIL, power rates will go up to Rs. 7 a Kwh. “We urge the people of this country not to allow the government to pass the huge benefit to RIL and [to] flood the Petroleum Ministry and its new Minister, Veerappa Moily, with RTIs [Right to Information questions] … so that he does not dare to undertake any revision. We should not allow this government, which changes Ministers at the instance of Mr. Ambani, to work at the direction of RIL.”
Mr. Kejriwal played the clippings of tapes, involving conversations between corporate lobbyist Niira Radia and Atal Bihari Vajpayee’s son-in-law Rajnan Bhattacharya. “First, the NDA regime favoured RIL in the structuring of the deal in 2000, and various modifications were made thereafter.” Citing the CAG’s report on the KG D6, he alleged that the motivated structuring of the contract could cost the exchequer up to Rs. 1 lakh crore.
He said RIL had signed a contract with state-run NTPC in 2004 to supply gas for its power plants at $2.34 per mmBtu. However, the company backed out of the deal, and the matter was in court. “UPA I or UPA II did not deem it fit to vigorously take up the case of NTPC against RIL, but worked in a proactive manner to get the price revised for RIL gas. The EGoM, headed by the then Finance Minister, Pranab Mukherjee, revised the gas price to $4.2 per mmBTU, and by doing so, it gave RIL an undue benefit of Rs. 8,000 crore.
Kejriwal’s latest: Reliance blackmailing govt, Mukesh Ambani running India
NEW DELHI: S Jaipal Reddy was axed as petroleum minister for refusing a Mukesh Ambani-led Reliance Industries’ proposal to hike charges of gas it supplied to state-run power plants, India Against Corruption’s Arvind Kejriwal charged on Wednesday, demanding that the Krishna Godavari basin allotted to the company be taken back.
“Mukesh Ambani is running the country it seems,” Kejriwal told the media here. “Jaipal Reddy was removed as he refused to hike the charges levied by Reliance Industries to supply gas to the NTPC (National Thermal Power Corp).”
Reliance called the charges “irresponsible”.
According to Kejriwal, the KG basin was awarded to Reliance in 2000 by the NDA government when the company agreed to supply gas to the NTPC for the next 17 years at $2.34 per unit.
But, said Kejriwal, the company revised the rate to $4.25 per unit in 2007 which then finance minister Pranab Mukherjee agreed to as the head of an empowered group of ministers.
“The entire contract was meant to benefit Reliance because … the cost would be determined by the company, and if the cost increases, so will the profit,” he said, adding this was unheard of in business.
The company, he said, revised the rate to $4.2 per unit in 2007, which then finance minister Pranab Mukherjee agreed to as head of an empowered group of ministers, benefiting Reliance to the tune of Rs.10,000 crore.
Kejriwal alleged that in 2006 then petroleum minister Mani Shankar Iyer was removed and Murli Deora brought in to increase Reliance Industries’ capital expenditure from $2.39 billion to $8.8 billion, and to hike gas price from $2.34 per unit to $4.2 per unit.
Later, the company wanted the rate further hiked to $14.2. Jaipal Reddy, who reportedly did not agree to the proposal, was shunted out in Sunday’s cabinet rejig, said the activist-politician.
Kejriwal released to the media a “secret” document of the petroleum ministry that said that accepting the Reliance demand would generate for it an additional profit of Rs 43,000 crore ($8.5 billion).
“In order to pressurize the government, RIL substantially reduced its production of natural gas,” a statement from India Against Corruption said.
“Production has been artificially kept low to blackmail the government. They are not just hoarding the gas but also forcing various consumers to buy gas from abroad.”
When Reliance sought Prime Minister Manmohan Singh’s intervention, he asked the attorney general to find out if the gas prices should be hiked or not.
“Why did the PM not show similar concern when NTPC was forced to accept higher gas price from RIL? Why is the PM not pulling up Reliance for not producing gas as per their commitment? Why did the PM not seek legal opinion when the country’s interests were at stake?”
Kejriwal, who was flanked by fellow activists Prashant Bhushan and Manish Sisodia, demanded that Reliance Industries’ “blackmailing” should be immediately stopped.
“Their KG Basin contract should be cancelled. The government should immediately put in place adequate systems to get full production from KG Basin at the cheapest price for the country.”
The Bharatiya Janata Party (BJP) asked the prime minister to respond to IAC and explain why Jaipal Reddy was dropped from the petroleum ministry.
“Is it any malfunction in the ministry that has persuaded Manmohan Singh to effect this change? Or is that Jaipal Reddy was not found a ‘convenient’ minister? Or is this another example of corporate interests taking precedence over national good?” BJP leader Jaswant Singh asked.
After taking on Congress president Sonia Gandhi’s son-in-law Robert Vadra and BJP president Nitin Gadkari, anti-corruption activist-turned-politician Arvind Kejriwal on Wednesday charged Mukesh Ambani, India’s richest man and chairman of Reliance Industries Limited (RIL), with getting undue
related stories
• Cong slams IAC over RIL allegations, questions source of funding
• RIL denies IAC allegations, says chargess made at ‘behest of vested interests’
• BJP to govt: Was Jaipal shifted to benefit RIL?
favours from the government over a contract to develop natural gas fields.
The allegations pertain to RIL’s D-6 block in the Krishna Godavari (KG) basin, India’s largest gas producing field off the eastern coast in Andhra Pradesh, which is being jointly developed by RIL and its partners, Britain’s BP and Canadian firm Niko Resources.
Kejriwal and his colleague, lawyer Prashant Bhushan, termed the deal a “classic case of crony capitalism” and said both the BJP-led National Democratic Alliance (NDA) and Congress-led UPA (United Progressive Alliance) governments were responsible for RIL getting this contract.
The contract, signed in 2000 by the then NDA government, according to Kejriwal, would rob the national exchequer of revenues to the tune of Rs. 45,000 crore if RIL’s demands for a higher price for its gas were met.
The government has not decided yet on a demand by RIL to raise the price of gas from the field to $14.25 per unit from $4.25, the subject of a long-running controversy.
In a brief statement, RIL dismissed the charges as being “devoid of any truth or substance”.
“Irresponsible allegations made by IAC at the behest of vested interests without basic understanding of the complexities of a project of this nature do not merit a response,” it added.
Petroleum minister Veerappa Moily refused to comment.
“I have better things to do,” he said.
“I don’t want to respond.”
The press conference also witnessed high drama when a Congress worker wanted to question Kejriwal, but was heckled by camerapersons and IAC volunteers, and forced to leave the venue.
Kejriwal based his attack on the government and RIL on the so-called ‘Radia tapes’, a collection of phone taps from between 2007 and 2009 in one of which someone thought to be former prime minister Atal Behari Vajpayee’s son-in-law Ranjan Bhattacharya is heard telling RIL and Tata Group’s corporate lobbyist Niira Radia that Ambani had told him that “Congress to apni dukaan hai”.
The unearthing of the Radia tapes had triggered accusations of corporate influence in the distribution of ministers’ portfolios in the UPA’s second term.
On Wednesday, Kejriwal gave this accusation fresh legs by linking Jaipal Reddy’s removal from the petroleum ministry on Sunday to his run-ins with RIL over the pricing of gas.
He also gave a populist spin to his allegations by linking the government’s restriction on the supply of cheap LPG cylinders to the public to the high profits being allowed to RIL.
“We want to know why the PM’s heart beats only for RIL. Why did he not seek the attorney general’s opinion when NTPC was not getting gas at cheap rates?” Kejriwal said.
State-run National Thermal Power Corporation (NTPC) had sought cheaper gas to fire its power plants.
* In 2006, Mani Shankar Iyer was removed and Murli Deora brought in to increase RIL capex from $ 2.39 billion to $ 8.8 billion and to increase gas price from $2.34 per mmBTU to $ 4.2 per mmBTU
* In 2012, Jaipal Reddy has been removed and Moily brought in to increase gas prices from $ 4.2 per mmBTU to $ 14.2 mmBTU and to condone RIL’s blackmailing of reducing gas production
* Both BJP and Congress involved. BJP signed a sweet deal with RIL in 2000. Congress faithfully implemented it
* If RIL demand of increasing the gas price to $ 14.2 is accepted, it would lead to shut down of several gas based power plants and increase in power and fertilizer prices
* By this deal, RIL would benefit by an additional Rs. 43,000 crore
* In Nira Radiia tapes, Ranjan Bhattacharya (Vajpayee’s son in law) is heard telling Nira that Mukesh Ambani told him –“Congress to ab apni dukaan hai”
* Huge benefits given to RIL in last one decade despite flagrant violations of various agreements by RIL. Benefits to RIL causing serious price rise in the country.
* “In order to pressurize the government, RIL substantially reduced its production of natural gas. Total consumption of natural gas in the country is 156 mmscmd. According to agreement, RIL was supposed to produce 80mmscmd (more than 50% of the total demand) from 2009.”
* “RIL got this contract during NDA regime in the year 2000. The contract was meant to favor RIL right from the beginning. In any business, increase in costs means decrease in profits.”
The IAC press release alleged that performance of RIL so far has been much worse than perhaps the worst performing government department.
1. 4 times cost escalation within 2 years from $ 2.39 billion in 2004 to $ 8.8 billion in 2006.
2. Increase in gas price from $ 2.34 per mmBTU in 2004 to $ 4.2 per mmBTU in 2007 to the present demand of $ 14.2 per mmBTU.
3. Capacity created for producing 80 mmscmd after incurring such a huge cost ends up producing just 27 mmscmd after 12 years.
4. 31 oil wells should have been in production till now. Out of them, just 13 are functional.
Kejriwal and lawyer Prashant Bhushan, a leading member of IAC, alleged the allocation of KG Basin to Reliance is on similar lines as coal block allocation scam. They alleged both Congress and BJP were in ‘Ambani’s pocket’.
REAL STORY OF Late DHIRUBHAI AMBANI of Reliance Industries
http://www.scribd.com/doc/3924530/Polyester-PrinceThe-Real-Story-of-Dhirubhai-AmbaniBanned-in-India
http://www.scribd.com/doc/3924530/Polyester-PrinceThe-Real-Story-of-Dhirubhai-AmbaniBanned-in-India
Another Major Scam : Govt. Favours Reliance In KG Basin
The CAG draft report that nails the connivance between Government agencies and Reliance Industries Ltd. leading to huge losses to the Government exchequer is yet another example of the power of corporates in the UPA Government to subvert rules and regulations in their favour.
The CAG has noted that the former Director-General of Hydrocarbons (DGH) permitted Reliance to inflate its “development costs” on the gas extraction in the D6 block of KG basin from 2.47 billion dollars to a whopping 8.84 billion dollars. This money taken by RIL affected the revenues of the Government. Government should prosecute the former DGH without any delay.
The Government’s connivance with RIL has a direct impact on the aam aadmi because increased claims of development cost get reflected in the price of gas given to consumers and also affect the prices of fertilizer and power. Letters have been written to the Prime Minister to institute an independent enquiry into the complaint of artificial jacking up of the capital expenditure by RIL for D6 KG Basin and its hasty approval by the concerned authority to find out the actual cost before gas price is fixed.
In a repeat of the 2-G scam, the Prime Minister’s silence on the issue, has again exposed the UPA Government’s acquiescence to corporate manipulation.
Related posts:
1. The Great Billion Dollar Drug Scam
2. Supreme Snub : Court SIT A Major Embarrassment For Govt
3. Now A Petroleum Scam?
4. The -Reliance KG Gas Scam Prabir Purkayastha, Newsclick
5. Way to Rural Self Reliance: National Rural Livelihoods Mission (NRLM)
6. Demand For JPC On Spectrum Scam :Go Beyond Rhetoric
7. THE ADARSH SOCIETY SCAM A Shocking Exposure of Congress govt Venality – Ashok Dhawale
8. SUPREME COURT VERDICT ON KG BASIN GAS -Dipankar Mukherjee
9. AMBANIS ROW : GOVT HAS LAST WORD ON KG BASIN GAS PRICE : SC
10. POOL PRICING FOR KG BASIN GAS TO HARM ANDHRA PRADESH INTERESTS
11. PRODUCTION OF GAS IN KG BASIN
12. FINDINGS OF ICAI IN SATYAM SCAM CASE
QUESTIONS FOR MONEY – PARLIAMENTARY ACTS/LEGISLATIONS FOR ????-improper functioning of democracy in india
the vohra committee report has proved the criminalisation of politics in india. There are many number of criminals in the parliament & state legislatures. Some of those criminals are cabinet ministers as well as members of vital parliamentary committees. Thereby, they are in a position to manipulate , enact laws favouring , benefitting the criminals their cronies.
Just see how the GOI gave export incentive of Rs.1800 crore to reliance petroleum although it didn't even export a barrel. Reliance infocom & tata teleservices were CDMA mobile service providers & have paid license fee of few crores only equal to landline fees without any competitive bidding . They were supposed to provide mobile service to operate like fixed phones within a radius of 40k.m. however they were providing service like mobile service from one state to another like GSM mobile service providers. By this act of RIC & TTSL , the GSM providers who have paid thousands of license fee in competitive bidding were economically hurt , the dispute went to court. The court was on the verge of pronouncing it's verdict awarding damages worth Rs.18000 crore to GSM players & Rs. 3000 crore of license fees with penalty to GOI. The government announced a unified telecom license regime with retrospective effect. Thereby, the GOI lost thousands of crores of rupees & the share holders of GSM players lost thousands of crores. Once again the RIC was charged by PSU bsnl THAT RELIANCE IS RE-ROUTING INTERNATIONAL CALLS AS LOCAL CALLS & SWINDLING THE GOI. This time too, GOI bailed it out. during the dispute between ambani brothers the younger ambani mr. Anil ambani director of reliance himself has stated that for the favours received from the GOI , the company gifted some shares to then IT & COMMUNICATIONS MINISTER mr. Pramod mahajan.
Various indian & multinational companies are looting indian exchequer to the tune of thousands of crores of rupees , through lobbying / bribing. In india, indirect democracy is the form of governance. In this form, people's representatives are bound to raise the questions , issues concerning their constituents on their behalf , on the floor of the house. However the sad part in india even after 58 years of democracy , is the lobbying is at it's peak. The lobbying is a gentleman's white collared crook's way of forming favour seeker's group , creating a corpus to pay lumpsum bribe & influencing decision making. The people's representatives are bound to represent their people first , then their party & party think tanks. India has come to this sorry state of affairs , widespread corruption , huge black economy & rampant poverty, all due to inefficient legislations & enforcements. These think tanks & IAS lobby, consider themselves as most super brains on earth & gives out suggestions . the present state of affairs is a barometer of their brilliance. These think tanks & IAS lobby are the hand maidens of lobbyists / bribers.
Now consider the following example : Mr.raj gandhi is a member of parliament from mandya constituency in karnataka state. He is a MBA graduate & member of ruling indian progressive party. The multinational giant M/S GREY HOUND CORPORATION wants to enter into paper manufacturing business in india. It's sight falls on the public sector paper giant mandya national paper mills ( MNPM) in mandya district of karnataka. The MNC effectively lobbies with the government. The ruling party think tank & the cabinet advisory group recommends to the government to make strategic disinvestment in the PSU M/S MNPM. They bring out graph with full power point presentation stating that it is good for the company as well as the government. The lobbyists follows it up with media reports on the positive aspect of strategic disinvestment. A favourable impression is created in the minds of literate public. The cabinet committee okays it.
The " strategic dis investment issue " comes before the parliament for legislation / approval. The ruling party issues a party whip to it's members to vote in favour of dis investment. However M.P mr.raj gandhi who is an MBA in his own wisdom also favours the dis investment. However ,most importantly the constituents – people in mandya parliamentary constituency through protest marches , mass post card campaigns lakhs in numbers expresses their disagreement with the dis investment & urges their MP mr.gandhi to vote against the disinvestment legislation.
On the D-day in parliament , mr. Raj gandhi as per his party whip & his own wisdom votes in favour of strategic disinvestment legislation, much against the wishes of his people , constituents & mis represents them in parliament. the democracy has failed here. in This way democracy is being derailed since 65 years in india.
In democracy, party whip , MP or MLA's own wisdom / brilliance, think tank & IAS lobby recommendations are all secondary , the constituent's of his constituency , people's wishes aspirations are of primary importance & supreme. What people need is a honest representative, who simply delivers the people's aspirations on the floor of the house back & forth , without superimposing it with his own ideas & party ideas. For true democracy , the people's representatives must be true postmans.
Towards this end , the people must be educated about their democratic rights & responsibilities. This is an appeal to the honest few in the parliament & state legislatures to weed out their corrupt colleagues , lobbyists, to uphold the dignity of the house & to install democracy in it's true form.
THREAT TO INDIA'S SECURITY BY CORPORATE CRIMINALS
- An appeal to honourable prime minister of india & honourable chief minister of Karnataka
- An appeal to honourable prime minister of india & honourable chief minister of Karnataka
In india , since ages certain section of people – dalits , tribals are being oppressed in the name of caste by forward caste people. The name sake independence has not changed the lives of dalits & tribals. The upper caste people were in control of government & economic sector before independence as well as after independence too. The upper caste people are now MPs , MLAs & are running businesses . they have framed rules , laws to suit their ends. They are getting bank loans , subsidies , tax cuts , etc , by greasing the palms of those in power – their own caste men. The reservation policy is just a vote winning gimmick of forward caste politicians , it is neo divide & rule policy. Only few dalits with money & contacts have benefitted , by the reservation policy of government. Majority of them are still sufferring from utter poverty & social oppression.
Now, due to rapid industrialisation & globalisation a new economic divide has taken place – rich & poor , haves & have nots. Now, economically poor are also being oppressed along with dalits. The forward caste people in government have framed laws to suit their ends , they have provided concessional priority loans , tax cuts , subsidies , etc from the government to corporate sector . The corporate sector has demanded & got monetary benefits , infrastructure facilities from the government . however the same corporates , MNCs are violating statuotary laws & are averse to social welfare measures of the government . they are averse to provide jobs to dalits , tribals & poor , why ? these corporates are bribing the labour , tax department & other government officials . as a result the government is loosing tax revenues to the tune of thousands of crores every year , the government doesn't have money to provide social welfare measures to common people. The lives of common people are under threat.
Now, the number of common people dying due to starvation , lack of health care is more than in a war field. The threat to unity & integrity of india is more from the corporate sector than pakistan or china.
Now, the government of india & other state governments are literally under corporate control. HRW has brought to the notice of government cases of statuotary law violations by various corporate entities ,
till date no action has been taken. Why ? hereby , HRW once again offers it's conditional services to the government of india & karnataka in apprehending corporate criminals , corrupt tax , labour , pollution control board offricials. Are you ready sir ????
Now, the government of india & other state governments are literally under corporate control. HRW has brought to the notice of government cases of statuotary law violations by various corporate entities ,
till date no action has been taken. Why ? hereby , HRW once again offers it's conditional services to the government of india & karnataka in apprehending corporate criminals , corrupt tax , labour , pollution control board offricials. Are you ready sir ????
COVERING-UP CORPORATE FRAUDS IN INDIA
- CORPORATE ACCOUNTABILITY & CORPORATE GOVERNANCE NEED OF THE HOUR
- CORPORATE ACCOUNTABILITY & CORPORATE GOVERNANCE NEED OF THE HOUR
In India , most of the commercial ventures cheat the government of it's rightful tax dues. As a result the governments doesn't have enough money to carryout it's social welfare duties – Providing health care , food , potable water to all. In turn common people are dying due to lack of health care , hunger , mal nutrition , etc. the murderers of these commoners are TAX EVADING CORPORATES , the politicians & officials keep mum by taking bribe.
Nowadays , even the underworld activities of mafia , terrorist outfits , political parties are being financed by the illegal corporate deals. Who says threat to India is from Pakistan only , it is most likely from our own entrepreneur. Till date the GOI has not put any corporate bigwigs behind bars for their crimes. The corporate lobby always clamours for flexible labour laws , credit policies as in U.S.A , but are mum about SOCIAL SECURITY NET , ENVIRONMENT POLICY & CORPORATE GOVERNANCE as in the same U.S.A. Why ?
Recently , it has been published that , in India out of vast sales of counterfeit MOVIE CDs & software CDs , underworld is funding narcotics trade , terrorist movements. It is high time the small investors , public became aware about the activities of their neighbouring businessmen / Entrepreneurs.
List of Reliance Scams
Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. The company operates in five major segments: exploration and production, refining and marketing, petrochemicals, retail and telecommunications.[1][2]
Seminar magazine (2003) detailed Reliance founder Dhirubhai Ambani’s proximity to politicians, his enmity with Bombay Dyeing’s Nusli Wadia, the exposes by the Indian Express and Arun Shourie about illegal imports by the company and overseas share transactions by shell companies, and the botched attempt to acquire Larsen & Toubro.[3]
As early as 1996, Outlook magazine addressed other controversies related to fake and switched shares; insider trading; and a nexus with the state-owned Unit Trust of India. Five main allegations concerning Reliance, and which have plunged the Indian capital markets into a period of uncertainty unsurpassed since the days of the securities scam were (1) Reliance issued fake shares (2) It switched shares sent for transfer by buyers to make illegal profits (3) It has indulged in insider trading in shares (4) It established a nexus with the Unit Trust of India to raise huge sums of money to the detriment of UTI subscribers (5) It attempted to monopolise the private telecom services market through front companies.[4]
Stock market regulator Securities and Exchange Board of India (Sebi) issued a show-cause notice to Reliance Industries Ltd following a probe into alleged insider trading in Reliance Petroleum Ltd (RPL) shares in November 2007. Sebi probed transactions by entities that participated in and led to some three months of speculative rally after which the RPL stock surged to an all-time intraday high of Rs295 on 1 November 2007. In a separate and independent investigation related to the same issue, the income-tax (I-T) department looked at possible tax evasion by a dozen entities that Mukesh Ambani-owned RIL acknowledged to be its “agents”.[5]
In Jan 2011, Sebi barred Anil Ambani and four other officials of Reliance Group—until recently known as the Reliance-Anil Dhirubhai Ambani Group (R-Adag)—companies from investing in listed shares until December 2011. Two group firms, Reliance Infrastructure Ltd (R-Infra) and Reliance Natural Resources Ltd (RNRL) were barred from making such investment until December 2012. According to Sebi’s investigations, R-Infra and RNRL were prima facie responsible for misrepresenting the nature of investments in yield management certificates/deposits, and the profits and losses in their annual reports for the fiscal years 2007, 2008 and 2009. It also found misuse of FII regulations. The then minister of state for finance Namo Narain Meena, on 1 December 2009, in a written response to a query raised in the Upper House of Parliament, said that three firms of R-Adag—R-Infra, RNRL and RCom—had violated overseas debt norms. These end-use violations were observed by the Reserve Bank of India (RBI) regarding two ECB transactions—of $360 million and $150 million—by R-Infra.[6]
In another case, Sebi, settled a dispute with Reliance Securities Ltd (RSL) with a consent order on June 2011, under which the brokerage will spend Rs1 crore within six months on investor education and not add any new clients for 45 days starting 15 June. In the settlement, it was also added that the brokerage will also pay Rs25 lakh towards settlement charges. This order followed a Sebi investigation into RSL’s books and accounts for fiscal 2007 and fiscal 2008, which said that it had allegedly violated various clauses of Sebi stock brokers and sub-brokers regulations. The Sebi inquiry cited 20 irregularities, including the brokerage not informing clients about various charges at the time of opening accounts. RSL sought power of attorney in the name of Reliance Commodities Ltd from clients and used this to debit clients’ bank accounts, purchase and sell post office deposits and government of India bonds among other transactions. Brokerage, not fully equipped to handle its customer base at the time, used the name Reliance Money at all its offices and on employee visiting cards, instead of Reliance Securities, which was the registered trading member, leading to confusion. Brokerage was found to have received funds from other client bank accounts other than the ones available to it, thus failing to have a sound third-party check on the receipt of payments. RSL had failed to update client details despite the stock exchanges pointing this out in their inspection reports. The Sebi inquiry also said RSL collected higher securities transaction tax from its clients in 2006-2008, allotted more than one terminal in the same segment for a single user, and also collected cheques in the name of Reliance Money. Brokerage also did not maintain clear segregation between broking and other activities of group companies. Further, there were frequent disruptions in the brokerage’s trading platform, which showed connectivity problems at the applicant’s end.[7]
Reliance Telecom was charged with criminal conspiracy to cause criminal breach of trust by a public servant, criminal conspiracy under section 120-B, cheating under section 420 and forgery under sections 468 and 471. Reliance Telecom was booked under the Prevention of Corruption Act, 1988.[8] Resulting in to arrest of Reliance Group's corporate executives Gautam Doshi, Surendra Pipara and Hari Nayar.[9]
The Central Bureau of Investigation (CBI) filed a chargesheet in a Mumbai court against Reliance Industries Limited (RIL) and four retired employees of National Insurance Company Limited (NICL), including a former CMD, under provisions of the Prevention of Corruption Act for criminal conspiracy and other charges. Acting on a reference from CVC in March, 2005, the CBI started probing the conspiracy that led to the filing of the chargesheet on December 9, 2011. The 2005 complaint had alleged irregularities in issuance of insurance policies — for coverage of default payments — by NICL to RIL. Chargesheet also mentioned criminal offences with dishonest intention and causing wrongful loss totaling Rs 147.41 crore to NICL and wrongful gain to the private telecom provider.[10]
Two retired senior officials of National Insurance Company Limited and 11 others were awarded varying jail terms by a Delhi court in Jan 2014.[11]
A business jet owned by Reliance Industries (RIL) was grounded by The Directorate General of Civil Aviation (DGCA) on 22 March 2014 during a surprise inspection, for carrying expired safety equipment on board; its pilot was also suspended for flying without a licence.[12]
In May 2014, ONGC moved to Delhi High Court accusing RIL of pilferage of 18 billion cubic metres from its gas-producing block in the Krishna Godavari basin.[13] Subsequently, the two companies agreed to form an independent expert panel to probe any pilferage.[14]
The Reliance Industries Limited (RIL) was supposed to relinquish 25% of the total area outside the discoveries in 2004 and 2005, as per the Production Sharing Contract (PSC). However, the entire block was declared as a discovery area and RIL was allowed to retain it. In 2011, the Comptroller and Auditor General of India (CAG) criticized the Oil Ministry for this decision. The CAG also faulted RIL for limiting the competition in contracts, stating that RIL awarded a $1.1 billion contract to Aker on a single-bid basis.[15][16]
A PIL filed in the Supreme Court by an NGO Centre for Public Interest Litigation, through Prashant Bhushan, challenged the grant of pan-India licence to RJIL by the Government of India. The PIL alleged that RJIL was allowed to provide voice telephony along with its 4G data service, by paying an additional fees of just INR16580 million (US$280 million) which was arbitrary and unreasonable, and contributed to a loss of INR228420 million (US$3.8 billion) to the exchequer.[17][18]
The CAG in its draft report alleged rigging of the auction mechanism, whereby an unknown ISP, Infotel Broadband Services Pvt Ltd, acquired the spectrum by bidding 5000 times its net worth, after which the company was sold to Reliance Industries.[19]
State Bank of India rewards whistleblowers with dismissal, defamation suit
CHENNAI: Defamation complaints and dismissal from service - these were the gifts management of the State Bank of India showered on four of its employees who acted as whistle-blowers and exposed a series of 'currency bundle missing' cases involving several lakhs of rupees from various branches of the bank.
Halting the witch-hunt by top brass of the biggest bank in India and coming to the rescue of the employees one of whom was even dismissed from service, Madras high court said: "It is unfortunate that a public sector bank like the SBI should file a (defamation) suit not only claiming damages for loss of reputation, but also seeking for a prior restraint on the trade union in publishing hand bills, posters and putting up placards."
A division bench of Justice V Ramasubramanian and Justice K Ravichandrabaabu said, "Image of the bank cannot be confused with officers at lower level committing fraud, misconduct and embezzlement. Certainly when a trade union finds that action is not being taken, they can take the issue to the public and the grievance projected in no way amounts to defaming the bank. An employee working in a public sector bank also owes a public duty when public funds were frittered away or misappropriated."
Halting the witch-hunt by top brass of the biggest bank in India and coming to the rescue of the employees one of whom was even dismissed from service, Madras high court said: "It is unfortunate that a public sector bank like the SBI should file a (defamation) suit not only claiming damages for loss of reputation, but also seeking for a prior restraint on the trade union in publishing hand bills, posters and putting up placards."
A division bench of Justice V Ramasubramanian and Justice K Ravichandrabaabu said, "Image of the bank cannot be confused with officers at lower level committing fraud, misconduct and embezzlement. Certainly when a trade union finds that action is not being taken, they can take the issue to the public and the grievance projected in no way amounts to defaming the bank. An employee working in a public sector bank also owes a public duty when public funds were frittered away or misappropriated."
In May 2006, a sum of Rs 30 lakh - six bundles of Rs 500 denomination - went missing from currency notes stored in the strong room of Avinashi branch of Coimbatore module in SBI's Chennai circle. Holding that chief general manager Pradip Chaudhary cannot be spared for the loss caused to the bank, three persons - M V Thangaswamy, president, S Gunasekar, general secretary and G Arasukumar, treasurer of SBI Ambedkar Trade Union - wrote complaints to the RBI and pasted posters seeking action.
In this regard, they pointed out that cash bundles worth Rs 5 lakh had gone missing from Salem branch, Rs 6 lakh went missing from Rasipuram branch, Rs 5.5. lakh from Aminjikarai branch, Rs 5 lakh from Kulithalai branch, Rs 6 lakh from Avinasi branch, Rs 1 lakh from Avinasi branch and the latest case of Rs 30 lakh going missing from the same Avinasi branch.
The bank hit back by issuing show-cause notices, memos, defamation suits and then dismissal of one officer from service, on the ground that they pasted posters without properly verifying the truth and with a view to defame the bank and cause damage to their business and reputation.
Setting aside the dismissal and other proceedings, the judges said, "It is seen from the contents of the posters that it was only an appeal to the bank for taking action. Specific instances were pointed out to the chief general manager to take appropriate action. Instead of taking action on the grievances projected by the trade union, the bank had filed the suit."
Exposing inaction of the bank in the light of a series of cash shortages can only be in public interest and making such statements cannot be detrimental to the interest of the bank, the bench said. The bank itself expects its officers to take all possible steps to ensure and protect the interests of the bank. Publishing or exposing the cash shortages in the bank and the inaction of the top officers cannot amount to willful damage to the property of the bank. It cannot even be said to be prejudicial to the interest of the bank, they concluded.
"Merely because it has exposed some irregularities, the poster will not affect the commercial interest of the bank," they said, adding that on the other hand, only by such exposures, correctional measures could be taken and the bank could assure the general public that all is well with them.
In this regard, the bench pointed out that it is usual practice for trade unions and public sector banks to publish the list of defaulters and the non-performing assets of the bank in order to bring it to the notice of the general public and the government, so that corrective actions can be taken.
In this regard, they pointed out that cash bundles worth Rs 5 lakh had gone missing from Salem branch, Rs 6 lakh went missing from Rasipuram branch, Rs 5.5. lakh from Aminjikarai branch, Rs 5 lakh from Kulithalai branch, Rs 6 lakh from Avinasi branch, Rs 1 lakh from Avinasi branch and the latest case of Rs 30 lakh going missing from the same Avinasi branch.
The bank hit back by issuing show-cause notices, memos, defamation suits and then dismissal of one officer from service, on the ground that they pasted posters without properly verifying the truth and with a view to defame the bank and cause damage to their business and reputation.
Setting aside the dismissal and other proceedings, the judges said, "It is seen from the contents of the posters that it was only an appeal to the bank for taking action. Specific instances were pointed out to the chief general manager to take appropriate action. Instead of taking action on the grievances projected by the trade union, the bank had filed the suit."
Exposing inaction of the bank in the light of a series of cash shortages can only be in public interest and making such statements cannot be detrimental to the interest of the bank, the bench said. The bank itself expects its officers to take all possible steps to ensure and protect the interests of the bank. Publishing or exposing the cash shortages in the bank and the inaction of the top officers cannot amount to willful damage to the property of the bank. It cannot even be said to be prejudicial to the interest of the bank, they concluded.
"Merely because it has exposed some irregularities, the poster will not affect the commercial interest of the bank," they said, adding that on the other hand, only by such exposures, correctional measures could be taken and the bank could assure the general public that all is well with them.
In this regard, the bench pointed out that it is usual practice for trade unions and public sector banks to publish the list of defaulters and the non-performing assets of the bank in order to bring it to the notice of the general public and the government, so that corrective actions can be taken.
SOILED NOTE FRAUD CASE @ RBI BANGALORE
- Trauma of an old man
- Trauma of an old man
Complete case details also available at http://members.lycos.co.uk/ganapathihariram/
As per allegations of RBI management Bangalore in 1977-79 , criminal
nexus of RBI employees stole Rs. 220000 from RBI Bangalore. All the
banks , government treasuries in Karnataka , submit defaced / soiled
currency notes to RBI Bangalore in exchange for good notes. RBI after
collecting such defaced currency notes , sorts out fairly good notes
which can be reissued & burns off the remaining totally defaced
currency notes. All these process is done in a systematic manner.
nexus of RBI employees stole Rs. 220000 from RBI Bangalore. All the
banks , government treasuries in Karnataka , submit defaced / soiled
currency notes to RBI Bangalore in exchange for good notes. RBI after
collecting such defaced currency notes , sorts out fairly good notes
which can be reissued & burns off the remaining totally defaced
currency notes. All these process is done in a systematic manner.
As per allegations of the management , the crime took place in the
period of 1977-79 at RBI Bangalore. A nexus of employees, took away
the currency bundles meant for destruction & substituted it in the
place of bundles of reissuables.
period of 1977-79 at RBI Bangalore. A nexus of employees, took away
the currency bundles meant for destruction & substituted it in the
place of bundles of reissuables.
Charge sheet issued by RBI Bangalore office to mr.G.Hariram
Staff no.3698/156/84-85 dt 1 april 1985
Amended charge sheet staff no 3798/156-84/85 dt 8 april 1985
Staff no.3698/156/84-85 dt 1 april 1985
Amended charge sheet staff no 3798/156-84/85 dt 8 april 1985
CBI has charge sheeted 17 employees in connection with this case ,
case olde no. cc34/1989 new no. sc 436/1991 . the
honourable 21 city additional city civil & sessions court Bangalore in
it's order dated 24.01.1992
discharged 03 charge sheeted employees , as the prosecution
failed to prove the charges against them. They came out clean , as
they were innocents saddled with the crime done by others. One of the
charge sheeted employee who turned approver for the prosecution, has
given detailed account of the crime. Nowhere he has mentioned the
involvement of accussed no.15 mr.G.Hariram in the crime.
case olde no. cc34/1989 new no. sc 436/1991 . the
honourable 21 city additional city civil & sessions court Bangalore in
it's order dated 24.01.1992
discharged 03 charge sheeted employees , as the prosecution
failed to prove the charges against them. They came out clean , as
they were innocents saddled with the crime done by others. One of the
charge sheeted employee who turned approver for the prosecution, has
given detailed account of the crime. Nowhere he has mentioned the
involvement of accussed no.15 mr.G.Hariram in the crime.
Even after coming out clean, mr.G.Hariram was not reinstated into
service by RBI. They gave the ruse of domestic enquiry & showed
contempt to the court order. On appeal, the honourable high court of
Karnataka ordered RBI to review it's order with respect to
mr.G.Hariram , still RBI failed to reinstate mr.G.Hariram into service
, once gain showing contempt to the court of law.
service by RBI. They gave the ruse of domestic enquiry & showed
contempt to the court order. On appeal, the honourable high court of
Karnataka ordered RBI to review it's order with respect to
mr.G.Hariram , still RBI failed to reinstate mr.G.Hariram into service
, once gain showing contempt to the court of law.
In India as per law , the decisions of court of law are binding on all
, orders of court over rides the organisation's internal rules ,
service rules , etc. inspite of lack of evidences, in a whimsical
manner the higher authorities of RBI , fixed some innocents as the
scape goats heaped all charges against them ( against whom they had
personal grudge , dislikes ). RBI repeatedly showed contempt to the
court orders , dismissed the scape goat - ailing old man mr.G.Hariram
from service. RBI snatched away his PF money towards the alleged loss
to the bank , didn't pay his gratuity amount , salary arrears and
finally he was even deprived of the pension. As a result , the old man
has even lost his social prestige, dignity , his family suffered a lot
& he is a mental wreck today.
, orders of court over rides the organisation's internal rules ,
service rules , etc. inspite of lack of evidences, in a whimsical
manner the higher authorities of RBI , fixed some innocents as the
scape goats heaped all charges against them ( against whom they had
personal grudge , dislikes ). RBI repeatedly showed contempt to the
court orders , dismissed the scape goat - ailing old man mr.G.Hariram
from service. RBI snatched away his PF money towards the alleged loss
to the bank , didn't pay his gratuity amount , salary arrears and
finally he was even deprived of the pension. As a result , the old man
has even lost his social prestige, dignity , his family suffered a lot
& he is a mental wreck today.
Why RBI authoroties are hell bent upon to send away the innocents /
scape goats away from service ? why CBI didn't conduct polygraph tests
of all the accussed , specifically higher officers of RBI , managers
of RBI office Bangalore ? probably the scape goats were aware of the
crimes master minded by higher ups & didn't co-operate with the higher
ups in their crimes. So, the criminals were afraid that the scape
goats will blurt out truth to the world , fixed non co-operating
innocents themselves as criminals.
scape goats away from service ? why CBI didn't conduct polygraph tests
of all the accussed , specifically higher officers of RBI , managers
of RBI office Bangalore ? probably the scape goats were aware of the
crimes master minded by higher ups & didn't co-operate with the higher
ups in their crimes. So, the criminals were afraid that the scape
goats will blurt out truth to the world , fixed non co-operating
innocents themselves as criminals.
Who will give justice to innocents like old man mr.G.Hariram & who
will bell the corrupt , criminals , fat cats of RBI ?
will bell the corrupt , criminals , fat cats of RBI ?
RBI Governor Hiding Information & Hiding Crimes
APPEAL UNDER SEC 19 (3) OF RTI ACT 2005 OF GOVERNMENT OF INDIA & GOVERNMENT OF KARNATAKA
FULL NAME OF THE APPLICANT : NAGARAJA.M.R.
ADDRESS OF THE APPLICANT : NAGARAJA.M.R.,
EDITOR , SOS E-VOICE JUSTICE & SOS E-CLARION OF DALIT ,
# LIG-2 / 761, OPP WATER WORKS OFFICE,
HUDCO FIRST STAGE, LAXMIKANTANAGAR,
HEBBAL, MYSORE , KARNATAKA PIN – 570017.
"Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , RBI Officials , public servants & Judges. Some of the below mentioned public servants fall among the category of churchill’s men – Rogues , Rascals & Freebooters. RBI Officials are denying me information under one pretext or the other and covering-up SCAM worth crores of rupees.
We salute honest few in public service , our whole hearted respects to them. HEREBY , I DO HUMBLY REQUEST YOU TO GIVE ME WRITTEN STATEMENTS / ANSWERS TO THE FOLLOWING QUESTIONS – WHICH IN ITSELF ( ie answers ) ARE THE INFORMATION SOUGHT BY ME. HERE WITH I AM SEEKING NOT THE OPINIONS ABOUT SOME HYPOTHETICAL ISSUES , BUT YOUR OFFICIAL STAND , LEGAL STAND ON ISSUES WHICH ARE OF FREQUENT OCCURRENCE WHICH ARE VIOLATING PEOPLE’S FUNDAMENTAL RIGHTS & HUMAN RIGHTS. WE DO HAVE HIGHEST RESPECTS FOR JUDICIARY & ALL PUBLIC INSTITUTIONS , THIS IS AN APPEAL FOR TRUTH , INFORMATION SO THAT TO APPREHEND CORRUPT FEW IN PUBLIC SERVICE, WHO ARE AIDING & ABETTING TERRORISM , UNDERWORLD & CRIMINALS.
HEREBY , I DO HUMBLY REQUEST YOU TO GIVE ME WRITTEN STATEMENTS / ANSWERS TO THE FOLLOWING QUESTIONS - WHICH IN ITSELF ( ie answers ) ARE THE INFORMATION SOUGHT BY ME. WITH RESPECT TO CASE NO old CC34 / 1989 & NEW NO SC436/1991 AT 21
ST ADDITIONAL CITY CIVIL & SESSIONS COURT BANGALORE
CHARGE SHEETED OFFICER MR.G.HARIRAM RBI BANGALORE
CHARGE SHEET NO staff no.3698/156/84-85 dt 01.01.1985
Amended charge sheet staff no.3798/156-84/85 dt 08.04.1985
1. Why didn't you notice the alleged crimes of 1977 , 78 & 79 till the
mid of 1979 ?
2. This crime came to light only due to anonymous phone calls of good
Samaritans to authorities , but not due to your inspection . is your
inspection division working properly ?
3. why there is no security check up of officers during entry & exit
out of premises ?
4. why there is no individual weighment , individual statement of
value of bags of reissuable notes & bags of note meant for destruction
, after sorting is done, why they are not tallied with total weight ,
value of notes issued for sorting ?
5. Immediately after noticing the crime, why did not you transfer all
the employees of those sections ?
6. why did not you take steps to preserve3 & protect respective
documents relating to such high profile crime ?
7. why didn't you immediately issue charge sheet to all the accussed &
waited till 1983 ?
8. Why RBI has left out , so many officers ( who worked in the same
sections for more period than accused officers ) from domestic
enquiry ?
9. why CBI also failed to put those people in the charge sheet before
the court ?
10. is it because they were in favorable terms with the vested
interests ?
11. did the CBI dance to the tune of vested interests in RBI while
preparing charge sheet & during investigation , instead of
independent investigation ?
12. those left out probables from the charge sheet might have caused
the destruction of evidences / records. During the course of domestic
enquiry / court proceedings , it has been recorded that some records
have been destroyed. Are not CBI & RBI responsible for destruction of
evidences , aiding true criminals get away ?
13. in normal times , what is the period specified in RBI regulations
for preserving old documents / records ?
14. after noticing such a high profile crime the RBI must have taken
utmost care to preserve such old records for indefinite time , for
producing before courts of law as & when demanded. But it didn't ,
why ?
15. does not this point to connivance of higher authorities of RBI ,
with the criminals ?
16. RBI authorities have conducted domestic mass enquiries , instead
of individual enquiries , is it not detrimental to the rights of
defense ?
17. RBI authorities have stated that court proceedings & domestic
enquiry are independent of each other & are not binding on one
another. However RBI authorities straight away took on record of
domestic enquiry the court statements , evidences , but didn't honour
the order of same court of law ? why this double standard by RBI ?
18. The alleged crime was committed in 1977-79, but charge sheet was
framed in mid 1985 , why this long delay ?
19. didn't this facilitate the masterminds of crime to destroy ,
manipulate evidences ?
20. as stated before court , indeed some records , 22nd currency note
packet were missing , who is responsible for it ?
21. has the CBI conducted enquiry , polygraph test of RBI higher
officers - S.N.RAZDAN , W.S.SARAF , J.P.AWASTHI , J.MITRA & others ,
if not why ?
22. is it not due to inefficiency , negligence of duty by such high
ranking managers , that such a crime occurred in RBI Bangalore ?
23. what disciplinary action RBI has taken against the inefficient ,
negligent higher officials ?
24. whatever internal rules an organization makes must be within the
line of law. If such internal laws of the organization are violative
of law , fundamental rights of employees , such internal rules become
illegal. Are not the way of RBI disciplinary proceedings illegal ?
25. as per RBI pension regulations 1990 , RBI has the right to deduct
any loss caused to the bank , from the pension of RBI employee if the
misconduct of employee is proved in judicial proceedings . even though
mr.G.Hariram came out clean from the court , why RBI has denied his
pension ?
26. judicial courts of law are appellate authorities over & above ,
domestic enquiry committees & judicial orders supersedes the domestic
enquiry proceedings. Still RBI showed contempt of court & didn't
reinstate mr..G.Hariram into service , why ?
27. even if an employee's misconduct causing loss to the bank is
proved , before denying him pension (towards making up loss to the
bank) , previous sanction of the central board of RBI must be taken.
But in mr.G.Hariram's case , pension was denied in full without taking
previous sanction of the central board of RBI , is it not illegal ?
28. RBI alleged that mr..G.Hariram caused loss to the tune of Rs.14000
to the bank & recovered it from his provident fund dues. There was
nothing left over to recover , still RBI completely denied pension to
mr.G.Hariram , why ?
29. ideally, domestic enquiry findings / disciplinary actions should
be completed first , then the employee can appeal to appropriate court
of law. In mr.G.Hariram's case , CBI & RBI failed to prove the charges
in court of law , as a result court discharged him from the charges.
To cover-up it's failures RBI management dragged domestic enquiry much
beyond court orders date & gave findings indicting mr..G.Hariram. does
the enquiry officer of domestic enquiry think that he is over & above
the court of law ? is it not illegal & contempt of court ?
30. ideally , RBI authorities should have appealed to higher court
against lower court order discharging mr.G.Hariram from charges. But
it was not done , why ?
31. did the RBI pay interim relief to mr.G.Hariram , during suspension
period ?
32. the undue delay in filing charge sheet , consequent destruction of
key evidences , dishonour / contempt of court orders , undue haste in
giving findings , dismissal , denial of of pension without central
board's sanction , all point towards criminals within RBI higher
management. What disciplinary action has been taken against
J.P.AWASTHI, S.N.RAZDAN,J.MITRA, W.SARAF & others ? if not why ?
33. why charge sheet was amended? Is it legal ?
34. did the charge sheet was amended to falsely implicate
mr..G.Hariram , by including cancelled note vault in the charge
sheet ?
35. does not this itself show that it is not statement of actual
happenings / facts , but a cunning ploy to mislead investigation
towards fixed innocents from actual criminals ?
36. is it true that that only 5% of sample inspection is done out of
bundled verified defective note packets ?
37. is not the conduct of joint / mass enquiries of all charge sheeted
officers illegal ?
38. how come such an important evidence 22nd note packet went
missing ?
39. is it because it may point towards real criminals ?
40. as per the statement of management witness / inspection head /
expert mr.vijendra rao , the notes of earlier dates have been removed
from packets made into new bundles , right ?
41. as per his statement , entire certificates , seals of some asst
treasurers are there , who didn't work at all on that day is not it ?
42. does not it show that some body else was misusing the seals ,
putting some innocents seals over the notes ?
43. does it not show that , crime has taken place at verification
section ?
44. does it not show involvement of some asst treasurers ?
45. why asst treasurers have not been charge sheeted ?
46. why inspection of RBI Bangalore office was not done between 1975 &
1979 ?
47. is it not true that you failed to produce all records showing
internal inspection / audits , during domestic enquiry & court
proceedings ?
48. your expert mr.vijendra rao has stated that some seal marks are
smudged , he has stated some seal marks appears to be so & so. He has
clearly nowhere stated that this seal mark is exactly this , so he
himself is not 100% sure ?
49. your expert nowhere said that 100% sure this seal mark is this ,
on that day this seal was issued to mr.G.Hariram , isn't it ?
50. your expert says during 1975 , he didn't notice3 any fraud.
However approver says fraud was there before mid 1977 also. Why no
action has been taken ?
51. why you didn't produce all records of all persons , who have
specifically worked in alleged sections , the registers of those
departments with daily activity report containing seal nos , packet
nos , bag nos , etc ?
52. are not their chances of some criminals putting the seal marks of
innocent officers over the notes , bundles , bags , etc ?
53. your expert is not 100% sure of seal mark , your records are not
there to prove the presence of charge sheeted officers in the alleged
sections , neither your expert nor your records are 100% sure on what
date , at what stage , by whom crime was committed , isn't it ?
54. is not the charge sheet amounting to higher ups picking up
officers they dislike & falsely implicating them ?
55. is it not cunning ploy of higher ups to divert attention from
original criminals ?
56. why no action was taken against currency officer of 1977-79
mr.J.Mitra ? why his pension , super annuation benefits were not
withheld ?
57. what is your justification , supporting evidence , records for
picking up only three officers including mr.G.Hariram for legal
prosecution and leaving the majority of probables ?
58. why you have dropped charges against five asst treasurers ? why
you didn't even conduct domestic enquiry against them , let alone
legal prosecution ?
59. Is it RBI's & CBI's way of fair play & justice ?
60. as inly 5% sampling of verified note bundles are done , there are
more possibilities of rebundled packets getting unnoticed in relaxed
95% lot , isn't it ?
61. you have left out so many officers who worked in those sections,
some of whom even became management witnesses , instead of being
charge sheeted by the management, is it fair play & legal ?
62. who are the bank employees , from whom you have recovered the alleged bank loss of Rs.220000 ?
63. were all of them charge sheeted , enquired , legally prosecuted ,
dismissed & their pension , gratuity withheld ?
64. you don't have any internal statuotary records to prove that
mr.G.Hariram worked in those departments , except a currency officer's
office note dated just on the eve of charge sheet years after the
alleged crime ? does it not prove that this note has been concocted
just to fix mr.G.Hariram ?
65. where as you have records of other officials attendance in those
departments , but not charge sheeted them why ?
66. three officers of staff grade A daily work in three sections out of 40 officers , why you have picked up only mr.G.Hariram , out of 1095 working days , he has worked for only 223 days in those
sections , still those officers who worked for more days in those
sections are not charge sheeted why ? the approver , the management
expert witness , shift registers , V2 registers , Destruction
certificates , Form CD 55 , etc , nobody , no records were able to say
on what date , at what stage , by whom crime took place , also they
were unable to say on what date at what stage crime was committed by
mr.G.Hariram ? is it not futile imagination , cunning ploy of RBI
higher authorities to fix innocent Mr.G.Hariram ?
67. the management expert witnesses said , the most probable place of
crime is punching / Cancelled Note Vault , incinerator , where asst
treasurers were joint custodians . they were not enquired & let off
why ?
68. the charge sheet alleges extraction / substitution of
defaced note packets. Where as the management expert witness say
substitution of defaced notes only ? is not there difference between
loss of one number of note & 100 number of notes ?
69. as per the normal course of duty , staff officers does not
count notes in each bundles , but they just count the number of
bundles only. Is not there chances of inserted note bundles or bundles
containing less number of notes going unnoticed ? is it not the
failure of statuotary system of work practices ?
70. does not all these prove higher authorities of RBI & CBI
were hell bent to fix mr.G.Hariram & to shield the original
criminals ?
Questions with respect to other cases :
71. how do you monitor the work of bank officials nominated as
directors of companies which have availed bank loans ?
72. how do you monitor the work of companies , in which banks
have invested ?
73. how do you monitor the rapid wealth growth of certain bank
officials , who work in shares investment / equity funds section ,
etc ?
74. inspite of project reports by bank officials , over
assessment of collateral securites / value of debtor companies by bank
officials , the loans become NPAs & full value cann't be realized in
the market by selling off the assets of debtor companies also. In such
cases , what action is taken against erring bank officials who collude
with criminal industrialists for availing higher amount of loan than
permissible ?
75. give bankwise specific figures of NPAs.
76. give names of industrial groups / promoters whose
companies have become NPAs , so that public can be aware of them ,
before investing in new companies promoted by them.
77. is not collection of loan from debtors of bank through
rowdies / recovery agents , illegal ?
78. why not criminal complaints filed against bank mangers for
aiding , abetting rowdism , murdering people ?
79. if your method of employing rowdies to collect loans of Rs.
10000 from commoners is right , what would you do to a promoter of a
debtor company to recover loans of crores of rupees , supari killing ?
but debtors of crores of rupees is let off coolly by banks , why ?
80. what is the exact amount of loss caused to the exchequer
by karim lala telgi who printed fake stamp papers ?
81. what action has been taken against those involved ?
82. have you taken action against all those mentioned by telgi
during narco analysis test , if not why ? is it because they are
powerful & bigwigs ?
83. how you are controlling the illegal finance activities ,
money lending by individuals , pawn brokers & chit fund companies ?
84. how you are monitoring the receipt of public donations ,
foreign donations by many NGOs ?
85. how many erring NGOs , chit fund companies , pawn
brokers , individuals you have booked for illegal finance activities ?
Questions relating to RBI CURRENCY NOTE PRESS MYSORE
86. who were responsible for selling the good printing machine at
security press nasik to scamster karim lala telgi as scrap ?
87. who recruited the candidates below merit rankings in R.B.I for
what criminal roles ?
88. how many irregularities have taken place in R.B.I till date ?
89. who is responsible for installing, operating & supervising the
security set-up in R.B.I ?
90. how the raw materials ie number of paper sheets, ink, etc are
accounted for in inward stores & while issuing for printing ?
91. how wastages, scrap of ink , papers , etc in the printing process
are accounted for?
92. How the finished goods ie currency notes are accounted for ?
93. Who keeps physical figures & possession of goods, inventory of
all the above?
94. How the scrap paper is disposed off ?
95. From security angle who keeps track from start till dispatch ?
96. Give me the merit ranking list of all candidates for the
post of stores assistant in BRBNMPL in the year 1995-96 ?
97. give me the merit ranking list of all candidates for the
post of process assistant at BRBNMPL in the year 1996 ?
98. give me the merit ranking list of all candidates for the
post of process assistants & maintenance assistants at BRBNMPL in the
year 1996-1998 ?
99. is not RBI & BRBNMPL authorities created by statuotary
laws , fully funded by public money ie from government exchequer ?
100. still why BRBNMPL & RBI refused to answer my previous
information request as per RTI Act ? are you afraid that skeletons
will come out of cubboard ?
101. what action initiated against the SBI branch Bangalore & SBI
Overseas branch for loss of cheque / draft amounting to crores of
rupees ? if not why ?
102. give me specific figures bank wise with respect to loss caused
to the bank by loss of cheques or demand drafts , etc ?
103. how RBI is containing crimes of loss of cheques / DDs causing huge losses to the banks to the tune of crores of rupees ?
104. what action taken against the RBI officials who are covering up crimes inspite of my repeated appeals & RTI requests ?
YEAR TO WHICH ABOVE PERTAINS : MAJORITY OF DOCUMENTS PERTAINS TO YEAR 1995 - 2015 .
PUBLIC INFORMATION OFFICER WHO FAILED TO GIVE INFORMATION :
CPIO , C/o PCGM and Secretary , Secretary’s Department , Reserve Bank of India , 16 th floor, Central Office Building , Shahid Bhagat Singh Marg , Mumbai – 400 001
FEES PAID : IPO 16G 733466 for rupees TWENTY only
DATE : 28.03.2015 ……………..………………………NAGARAJA.M.R.
PLACE : MYSORE , INDIA….. ……………………….( APPLICANT)
FINANCE SCAMS IN INDIA & 5-STAR LEADERS WITH BEGGING BOWL
In " mysooru mithra" a kannada daily dated 15/06/2005, the editor has
written about a copy of the complaint made by Transparency
International India-Bangalore to central vigilance commission of
india.
written about a copy of the complaint made by Transparency
International India-Bangalore to central vigilance commission of
india.
In indian banks , there is a strange practice that whenever a cheque
is put before the clearing house by a bank, the clearing house sends
that cheque to the service branch of bank paying. The service branch
then sends that cheque to the appropriate bank branch
for deduction of cash from the cheque account. In this travel , if the
cheque is lost or misplaced midway, the service branch pays out of
it's suspense account to the cash collecting bank. Logically,
afterwards the service branch must initiate a thorough inquiry, get
authentication from both persons one who gave cheque & other who
collected cheque. Finally, the money must be transferred from the
account of cheque giver to the suspense account.
is put before the clearing house by a bank, the clearing house sends
that cheque to the service branch of bank paying. The service branch
then sends that cheque to the appropriate bank branch
for deduction of cash from the cheque account. In this travel , if the
cheque is lost or misplaced midway, the service branch pays out of
it's suspense account to the cash collecting bank. Logically,
afterwards the service branch must initiate a thorough inquiry, get
authentication from both persons one who gave cheque & other who
collected cheque. Finally, the money must be transferred from the
account of cheque giver to the suspense account.
However , upto 1997 two branches of state bank of india in bangalore &
overseas branch sufferred from frequent loss of cheques totally
amounting to RUPEES THREE THOUSAND TWO HUNDRED CRORE. In all cases of
cheque loss the bank has paid out of suspense account, totally
amounting to Rs.3200 crore. However the bank has not
initiated any enquiry to recover that amount from the cheque givers.
overseas branch sufferred from frequent loss of cheques totally
amounting to RUPEES THREE THOUSAND TWO HUNDRED CRORE. In all cases of
cheque loss the bank has paid out of suspense account, totally
amounting to Rs.3200 crore. However the bank has not
initiated any enquiry to recover that amount from the cheque givers.
In the 1997 internal audit report of the bank itself , this has been
clearly pointed out. Till date, even the central vigilance commission
has not initiated any action about it. A member of central vigilance
commission happens to be ex-chairman of state bank of india.
clearly pointed out. Till date, even the central vigilance commission
has not initiated any action about it. A member of central vigilance
commission happens to be ex-chairman of state bank of india.
It is just an instance of two branches of SBI, what about hundreds of
branches of SBI, what about thousands of branches of other public
sector,private sector & co-operative banks. It is fraud,fraud,fraud
all the way. Few months back to cover-up the crimes
of global trust bank ( GTB) , it was taken over by oriental bank of
commerce ( OBC).
While sanctioning a loan of just Rs.10000 to a common man , he has to
comply with lengthy legalities. If he defaults, bankers breath down
his neck, bankers send rowdies in the form of recovery agents to
humiliate the common man & his properties are
auctioned-off, finally all dues to the last penny are recovered. In
most of the cases bankers even force the defaulters to commit suicide.
However influential persons easily gets loans amounting to hundreds of
crores of rupees, coolly defaults, siphons-off the funds & shuts his
shop. No recovery at all , just it becomes a non- performing asset
(NPA) in the bank ledger. The total NPAs of all public sector banks is
more than Rs.80000 crore. This burden is spead over the crores of
hapless indians.
branches of SBI, what about thousands of branches of other public
sector,private sector & co-operative banks. It is fraud,fraud,fraud
all the way. Few months back to cover-up the crimes
of global trust bank ( GTB) , it was taken over by oriental bank of
commerce ( OBC).
While sanctioning a loan of just Rs.10000 to a common man , he has to
comply with lengthy legalities. If he defaults, bankers breath down
his neck, bankers send rowdies in the form of recovery agents to
humiliate the common man & his properties are
auctioned-off, finally all dues to the last penny are recovered. In
most of the cases bankers even force the defaulters to commit suicide.
However influential persons easily gets loans amounting to hundreds of
crores of rupees, coolly defaults, siphons-off the funds & shuts his
shop. No recovery at all , just it becomes a non- performing asset
(NPA) in the bank ledger. The total NPAs of all public sector banks is
more than Rs.80000 crore. This burden is spead over the crores of
hapless indians.
The government takes pride in murdering forest brigand veerappan. The
ill-gotten wealth of veerappan is not even pea nuts before this huge
amount. Remember past finance scams – MS SHOES, HAWALA, HARSHAD MEHTA
SHARE SCAM, KETAN PAREKH SHARE SCAM, UTI, etc. totally in all these
scams billions of dollars of public money have gone to the coffers of
criminals. These scamsters put veerappan to shame in their turnover.
However the government is not even exhibiting a fraction of it's
ELIMINATE VEERAPPAN DRIVE against these scamsters, why?
ill-gotten wealth of veerappan is not even pea nuts before this huge
amount. Remember past finance scams – MS SHOES, HAWALA, HARSHAD MEHTA
SHARE SCAM, KETAN PAREKH SHARE SCAM, UTI, etc. totally in all these
scams billions of dollars of public money have gone to the coffers of
criminals. These scamsters put veerappan to shame in their turnover.
However the government is not even exhibiting a fraction of it's
ELIMINATE VEERAPPAN DRIVE against these scamsters, why?
In india, both central & state government tax/ revenue officials are
neck deep in corruption. By, taking bribe they make lower assessment
of income, gains, etc & spare businessmen from the tax payment. The
government in return for favours received from
lobbies, gives tax exemptions to them at it's sweet will. All these
scams & it's cover-ups are insider jobs. The government is not
interested to collect, recover it's own monies
amounting to billions of billions of dollars every year. However our 5-
star leaders living at the expense of tax-payers, go-on foreign jaunts
with a begging bowl for a few lakhs of dollars. What a shame?
neck deep in corruption. By, taking bribe they make lower assessment
of income, gains, etc & spare businessmen from the tax payment. The
government in return for favours received from
lobbies, gives tax exemptions to them at it's sweet will. All these
scams & it's cover-ups are insider jobs. The government is not
interested to collect, recover it's own monies
amounting to billions of billions of dollars every year. However our 5-
star leaders living at the expense of tax-payers, go-on foreign jaunts
with a begging bowl for a few lakhs of dollars. What a shame?
More than 50 billion indians are barely surviving on a single meal per
day & hundreds are dying due to starvation, billions don't even have
basic necessities of life. If the government even just collects a
fraction of it's dues from scamsters, defaulting industrialists –
people won't die of hunger in india. Has this enlightened our thick
skinned netas ?
day & hundreds are dying due to starvation, billions don't even have
basic necessities of life. If the government even just collects a
fraction of it's dues from scamsters, defaulting industrialists –
people won't die of hunger in india. Has this enlightened our thick
skinned netas ?
Editorial : Crimes @ Reserve Bank of India
- An appeal to SUPREME COURT OF INDIA & central information commission
- An appeal to SUPREME COURT OF INDIA & central information commission
Ref no. RTI APPEAL via web DPG/B/2008/80341
RBI is a public authority , set up by an act of parliament. Numerous
irregularities , illegalities , crimes have taken place at RBI , still
it is fully covered up by those in influential positions.
irregularities , illegalities , crimes have taken place at RBI , still
it is fully covered up by those in influential positions.
Just refer “Oil for Food Money in Iraq scam ” and “ Vostro Account Scam of 1990s”. Influential people are involved , everything happened under the noose of RBI , With the connivance of RBI officials ?
We requested the CPIO of RBI HQ for information as per RTI Act ( our
letter dt 20th September 2008 ) about various issues concerning the
activities of that institution in whole. However the CPIO OF RBI HQ
through his letter no.DAPM.CO.RIA.4001/07.50.01/2008-09 dt October
03rd 2008 declined to give information citing certain ruses. ( RBI Ref
no. RIA 798/2008-09 )
letter dt 20th September 2008 ) about various issues concerning the
activities of that institution in whole. However the CPIO OF RBI HQ
through his letter no.DAPM.CO.RIA.4001/07.50.01/2008-09 dt October
03rd 2008 declined to give information citing certain ruses. ( RBI Ref
no. RIA 798/2008-09 )
He has stated that some information pertains to security press ,
nashik & note press at mysore. True , both those institutions are
fully owned subsidiaries of RBI , hence RBI is in a position to
answer. Still , RBI can transfer a copy of our RTI Application to
those authorities as per provisions of Sec 6(3) of RTI ACT 2005. CPIO
didn’t do that.
nashik & note press at mysore. True , both those institutions are
fully owned subsidiaries of RBI , hence RBI is in a position to
answer. Still , RBI can transfer a copy of our RTI Application to
those authorities as per provisions of Sec 6(3) of RTI ACT 2005. CPIO
didn’t do that.
One more ruse of CPIO of RBI is that , I am seeking his views /
opinions on issues concerning RBI activities. He is wrong , I am
seeking to know the official / legal stand of RBI regarding it’s
activities for example , appointment of rowdies as loan recovery
agents by banks , etc. CPIO has failed to state the official stand
regarding various activities of RBI.
opinions on issues concerning RBI activities. He is wrong , I am
seeking to know the official / legal stand of RBI regarding it’s
activities for example , appointment of rowdies as loan recovery
agents by banks , etc. CPIO has failed to state the official stand
regarding various activities of RBI.
One more ruse given by CPIO of RBI is that I have raised many issues ,
to be specific 103 questions on various topics concerning RBI , giving
information on all those diverts the resources of authorities , hence
information request is denied. TRUE , information sought is many , so
do the crimes @ RBI which are also many. When compared to magnitude of
crimes @ RBI which is 3-4 times the entire budget outlays of Indian
government to the tune of crores of rupees , the resources spent to
ascertain information as per our RTI Application is just few hundreds
of rupees. When compared to the money spent by RBI officials by way of
TA / DA during their travel , etc, our information request resource
needs are peanuts.
to be specific 103 questions on various topics concerning RBI , giving
information on all those diverts the resources of authorities , hence
information request is denied. TRUE , information sought is many , so
do the crimes @ RBI which are also many. When compared to magnitude of
crimes @ RBI which is 3-4 times the entire budget outlays of Indian
government to the tune of crores of rupees , the resources spent to
ascertain information as per our RTI Application is just few hundreds
of rupees. When compared to the money spent by RBI officials by way of
TA / DA during their travel , etc, our information request resource
needs are peanuts.
To sum up , CPIO of RBI is hell bent to protect the criminals @ RBI
lest the truth comes into open. Hereby , we request the honourable
Supreme Court of India & central information commission to order the RBI to give us truthful
information in whole , so that justice is given to those victimized &
fat criminals are sent to gallows. JAI HIND. VANDE MATARAM.
lest the truth comes into open. Hereby , we request the honourable
Supreme Court of India & central information commission to order the RBI to give us truthful
information in whole , so that justice is given to those victimized &
fat criminals are sent to gallows. JAI HIND. VANDE MATARAM.
Read the article "Crimes @ RESERVE BANK OF INDIA" @ http://theftinrbi.blogspot.com/
, http://theftinrbi.rediffblogs.com/ , http://theftinrbi.wordpress.com/
, http://theftinrbi.rediffblogs.com/ , http://theftinrbi.wordpress.com/
Your’s sincerely,
Nagaraj.M.R.
Nagaraj.M.R.
PRAVEEN SWAMI
BRITISH officials are investigating the activities of one of the most prominent overseas backers of secessionist groups in Jammu and Kashmir. Last month, the United Kingdom's Charities Commission and the Metropolitan Police began looking into allegations that Ayub Thokar, the head of the World Kashmir Freedom Movement, had funnelled funds raised for charity to the terrorist groups.
Investigations into Thokar's role in funding terror began after Indian officials handed over evidence in the case to their British counterparts in June. The two Indian officials from the Ministry of Home Affairs and a senior Jammu and Kashmir Police officer made available details of funds funnelled from Thokar's charity, Mercy International, through Standard Chartered Grindlays Bank (since then renamed Standard Chartered Bank) and the Development Credit Bank. The investigators also provided transcripts of telephone intercepts and cases filed against the recipients of the funds in India.
On May 25, a long-running Intelligence Bureau operation led to the arrest of Srinagar-based journalist Imtiaz Bazaz. Officials claim that he was a key conduit for transferring funds to Hizbul Mujahideen field commanders in Jammu and Kashmir. On April 22 Bazaz had received a foreign currency remittance of Rs.4,84,875 into his account with Standard Chartered in New Delhi, and on May 15 a second remittance of Rs.14,98,000 into the Development Credit Bank. Although intelligence officials monitored the first transaction, they did not intervene, in the interest of building up evidence. The second transaction was frozen.
The funds trail led straight to Thokar. It transpired that in early 2001, Hizbul Mujahideen chief Mohammad Yusuf Shah had sent Rs.48 lakh to Jamaat-e-Islami leader Syed Salahuddin through Thokar. Subsequently, after the arrest of Jamait-ul-Mujahideen finance commander Qasim Faktu, Thokar began to finance his organisation through the terrorist's wife, Asiya Indrabi. Most of the funds were routed through Bazaz, who arranged for the transfer of funds received in New Delhi to accounts held with the Jammu & Kashmir Bank in Srinagar. Cash was then paid to the final recipients.
Meanwhile, Income Tax Department investigations against All Parties Hurriyat Conference (APHC) leader Syed Ali Shah Geelani have started to bear fruit (Frontline, July 5, 2002). The secessionist leader claimed an annual agricultural income of Rs.10,000 in his tax returns, and also received the official pension of Rs.85,200 due to two-term MLAs - ironically enough for a man now at the cutting edge of the secessionist anti-election campaign! His expensive house in Hyderpora, however, had several cars parked there and the household was run by a personal staff of 14 people. The monthly kitchen expenses amounted to Rs.25,000. Income Tax Department searches of the Geelani home also yielded Rs.10.25 lakhs and $10,000 in cash. Income-tax officials have now decided to impose penalties of Rs.30 lakhs on Geelani, based on his estimated income over the last six years, the maximum period allowed by law. His businessman son-in-law Altaf Ahmad Shah, who allegedly used his legitimate operations to launder funds, has been slapped with a Rs.40 lakhs penalty. Failure to pay could lead to the auctioning of Geelani's assets, including the Hyderpora home.
Separate income-tax penalties of Rs.2 crores have been imposed on businessman Abdul Rashid Saraf, who was allegedly involved in handling hawala funds sent to APHC chairman Abdul Gani Bhat. Saraf, income-tax authorities found, had failed to disclose income of Rs.3.37 crores over the last six years.
The vigour that the Income Tax Department has shown in this matter marks a welcome departure from the past. After it was driven out of Srinagar in the later 1980s by mobs that attacked income tax inspectors, the organisation had granted de-facto independence to the State. This time, two planeloads of officials flew into the Avantipora Air Force base and they were escorted to the raids by police officers. Their successes seem to have convinced the Income Tax Department that it is after all possible to play a useful role in Jammu and Kashmir.
In the U.K., both Mercy International and Thokar will now have to answer some hard questions. For one, there is no explanation why the organisation did not send supposed philanthropic donations to the several-dozen charities in Jammu and Kashmir which have clearances under the Foreign Exchange Management Act. Thokar will also have to explain how he paid for the purchase of his London home, and his regular overseas travels, given the fact that he has no ostensible means of income. India has, however, chosen not to seek Thokar's extradition, since the fact that his wife is a U.K. national makes this outcome unlikely.
For India, British action in this case will be a key test of its loudly-advertised anti-terrorist stance. In March, sources told Frontline, Deputy Prime Minister L.K. Advani had handed over to British Foreign Secretary Jack Straw a dossier on the activities of secessionist groups in the U.K. Titled 'Misuse of British Soil by Kashmir Expatriates Based in the U.K. for Funding Terrorism in J&K', the document outlined many of the charges which investigations have now added substance to. Sources say the team that visited the U.K. pointed to Straw's promises to crack down on terrorism-related money laundering, and were told that criminal prosecutions would take place in the U.K. Earlier, the U.K. successfully prosecuted two Khalistan-linked British nationals involved in backing the Babbar Khalsa International.
If funds transfers to terrorist groups are effectively cut off, it will do not a little to cripple such organisations. The reasons are simple. While it is easy to send cadres across the Line of Control, actually sustaining their activities in Jammu and Kashmir needs an elaborate financial structure. Money is needed to pay for everything from food and shelter to informants, political support and the legal defence of arrested sympathisers. Since it is impossible to lug sacks full of cash across the LoC, illegal funds transfers come into play. For many businessmen in the Kashmir Valley, holding such cash for short terms has been a profitable, risk-free enterprise. Now the penalties imposed should persuade conduits for blood-money transfers that crime does not, in fact, pay.
New Delhi, Mar 6: European countries are being used as hot destinations by terror group al-Qaeda to route money to India, according to a report by Peruvian Financial Intelligence Unit (FIU).
The report said the FIU had found at least one case of such suspicious transaction by al-Qaeda every month and shared them with the US investigators.
The report said the FIU had found at least one case of such suspicious transaction by al-Qaeda every month and shared them with the US investigators.
"The FIU also reports tracking cases similar to that of an OFAC-designated (US Office of Foreign Assets Control) of al-Qaeda element moving money from Europe through Lima and on to India," the report leaked by Wikileaks, a non-profit media organisation dedicated to bringing important information to the public, quoting FIU head Enrique Saldivar disclosed.
"Asked if this al-Qaeda case was the first of its kind or they had seen similar cases before, Saldivar told NASOff that they see about one case a month," the cable said.
The FIU receives and analyses STRs, may request additional information relevant to cases or operations related to money laundering or terrorist financing, provides Financial Intelligence Reports (FIR) to the Public Prosecutor's Office, participates and/or requests joint investigations, and coordinates with foreign FIUs and entities.
"Of the 7,710 suspicious activity reports examined by FIU analysts in 2009, 781 resulted in financial intelligence reports sent to the Public Ministry for further processing and investigation.
"Based on these 781 intelligence reports, the FIU concludes more than 3 billion USD moved illegally through Peru''s financial sector in 2009," it said.
"83 per cent of this amount, according to the FIU, is related to drug trafficking. The other 17 per cent is reportedly related to fiscal fraud, corruption and illegal gun dealing. Currently, 308 of these intelligence reports are at various stages of investigation and prosecution in the legal system as compared to four cases in 2008," the cables read.
According to Saldivar, anti-money laundering efforts in Peru are hindered by several factors.
Mumbai: Standard Chartered Plc, (StanChart) which is set to hit the market with the first ever issue of Indian depository receipts (IDRs) on 25 May, has not disclosed many pending cases against it for alleged violation of foreign exchange remittance norms in the draft red herring prospectus submitted to the capital markets regulator.
The alleged violations—17 transactions of drafts, one telex transfer and two cash transactions—go back to 1991-92, when the Enforcement Directorate (ED) found a series of forex violations made through the bank’s Mumbai branches to the UK.
ED is a government agency that looks into foreign exchange transactions.
The violations were discovered after ED investigated a number of banks, including Standard Chartered, in the aftermath of the Harshad Mehta scam that rocked the stock markets in 1991-92.
The ED complaint was filed in the court of chief metropolitan magistrate in Mumbai by enforcement officer S. Parvez in May 2002.
These complaints, which are still pending, charge the bank and its then chairman Rodney Galpin of “total violation” of the exchange control manual and provisions of then prevailing foreign exchange regulation norms.
Mint has reviewed copies of some of these case files.
The Issue of Capital and Disclosure Requirements (ICDR) norms, laid down by the Securities and Exchange Board of India (Sebi), require any firm floating a public issue to disclose all pending proceedings initiated for economic offences against the issuer or its directors, as well as the present status of such cases.
StanChart said that it has no “material litigation” to disclose. The bank’s spokesman Arijit De said the lender has applied the relevant materiality standard in arriving at the disclosures.
In response to an email questionnaire, he said the bank would comply with the applicable laws, regulations and international practice with regard to material information disclosure and uniformity of disclosures.
“Accordingly, in relation to disclosure on litigation, as provided under the provisions of the Sebi (ICDR) regulations, 2009, as amended, Standard Chartered Plc, as an issuer of IDRs, is required to disclose ‘material litigation’. In considering whether disclosures are necessary in relation to litigation, Standard Chartered Plc has applied the relevant materiality standard. On this basis, no litigation is required to be disclosed,” the email said.
Under Sebi rules, the so-called materiality of a case must be judged on three broad parameters: qualitative nature, litigation or defaults that may not be material at present but might have a material impact later, and litigations that may not be material individually, but may be found material collectively.
A questionnaire to Sebi on whether it has granted any special exemption to StanChart for the IDR remained unanswered.
A senior lawyer at a national law firm said: “All pending litigations that have a bearing on the issue should be disclosed in the prospectus as per ICDR regulations. Moreover, the issue of materiality varies from case to case and is subjective. If I were an underwriter, I would have disclosed the status of the cases and justified if the cases have any material impact on the company’s businesses or not, in the prospectus.” The lawyer did not want to be identified.
Market analysts say there is no definitive yardstick for deciding the importance of a case.
“Materiality is subjective and judgemental,” said Prithvi Haldea, chairman and managing director of Prime Database, a primary market tracker. “The merchant banker, issuer and lawyer can collectively take a call on whether a matter is material or not.”
However, if these matters are decided in court and proven to be material, the issuers, bankers and lawyers can be taken to court for substantial damages, he added.
The amount involved in the 17 transactions listed by ED and facilitated by the bank between February 1991 and September 1992 is Rs4 crore. The bank also allegedly facilitated a telegraphic transfer of Rs1.5 crore. ANZ Grindlays Bank, which was acquired by StanChart in 2000, allegedly helped the same entities transfer around Rs55 crore. Separate cases are pending against both banks in the matter.
According to the case files, Irish rugby player Keith Fairbrother was the key beneficiary of the transfers. He owned a company, Indo International, earlier known as Eastern Suburbs, based in the UK, but with bank accounts in both names in India as well as the UK.
Fairbrother is said to have facilitated a few import-export deals between some Indian firms and their counterparts in the erstwhile Union of Soviet Socialist Republics (USSR). Since India and USSR had bilateral trade pacts, any payment to entities there needed to be routed through the Reserve Bank of India (RBI) with appropriate approvals and sanctions. Fairbrother, the files claim, broke these rules using various foreign banks, including StanChart.
Through his associate Kuldip Singh Sood in India, Fairbrother would collect Indian rupee drafts drawn by an Indian bank on its domestic branch. Allegedly with the connivance of StanChart, he would get them cleared without making any declarations or taking any approvals and credit the amount to a vostro account of StanChart London and Manchester. These banks would, in turn, transfer the amount to a beneficiary of the same name in the UK.
A vostro account is the local currency account held by a local bank for a foreign one. Such accounts are used for inter-bank transfers, and money transfers to non-residents need RBI’s nod. ED has charged that the bank and its then CEO violated these rules.
A senior broker, on condition of anonymity, said that as a matter of principle, the company should publish all pending legislation and leave the question of materiality to investors’ judgement.
“By choosing to ignore pending legislations, they are setting a bad example for the companies coming to list such instruments in future,” he said.
n.subramanian@livemint.com
PANAJI: Opposition leader Manohar Parrikar on Thursday said he would write to Prime Minister Manmohan Singh, fearing that money from a multi-crore excise scam linking Goa with Indian border states is being used to fund terrorist activities.
Parrikar has also alleged that the state excise department has been issuing permits to companies furnishing bogus addresses.
· Incidentally, the state government's reply that the state finance secretary is investigating earlier allegations made by Parrikar on the excise scam has not satisfied the opposition leader, who has demanded that the matter be immediately handed over to the Central Bureau of Investigation (CBI).
·
Raising the matter during question hour, Parrikar said that illicit alcohol consignments worth crores of rupees are being sent to border states in the north and north-east of India.
"Money from this scam is being used to fund terror networks. The excise departments from other states such as Punjab, Rajasthan and the north eastern states are involved," he said. The opposition leader also reminded the House that he had first made these allegations in the last assembly session.
"I believe the prime minister is an upright person and I will write to him to probe into this," Parrikar said. Chief minister Digambar Kamat, however, did not commit to a criminal investigation into the scam.
"The finance secretary is currently conducting an inquiry into the matter," he told the House.
Parrikar retorted: "The finance secretary does not have powers to conduct such an inquiry. We have to verify the signature of the superintendent of excise on the order, which the finance secretary will not be able to do. He cannot go to Punjab and Rajasthan to investigate the matter."
"The only thing that needs to be investigated is who made the payment for the 1.04 lakh litres of alcohol that was imported in September. Trace the source of payment and you will find out who the culprit is," Parrikar said.
Mumbai / Pune: The reluctance of a top Swiss bank to help Indian investigators is slowing the unravelling of an intricate multinational trail of money transfers—across Switzerland, New York, the British Virgin Islands and Pune—between an Indian horse owner and a fugitive Saudi arms dealer, according to officials in the Enforcement Directorate, the government body that investigates economic crimes.
A top official in the Enforcement Directorate (ED) who did not wish to be identified confirmed on Friday that the agency’s officials, in December 2007, had advised the Indian government not to clear a Rs467 crore plan by UBS (United Bank of Switzerland) AG, the world’s biggest wealth management company, to buy the Indian mutual fund business of Standard Chartered Bank because the Swiss bank had not helped track international money transfers of Pune horse owner Hassan Ali Khan.
Investigators from the ED, who recently claim to have found $8 billion in the Swiss bank accounts of Hasan Ali Khan, say they now have evidence of a $300 million transfer to him (via a Chase Manhattan bank account in New York) from billionaire Saudi arms dealer Adnan Khashoggi, whose arms supplies to Tamil terrorists, the LTTE, were revealed during an investigation into the 1991 assassination of Rajiv Gandhi.
As the Bombay high court hears an Enforcement Directorate plea not to return passports to Khan and his wife Rheema, theHindustan Timeshas previewed a secret ED report that reveals the agency’s attempts to find the links between Khan and Khashoggi.
As evidence the report quotes a notation, “funds from weapon sales”, made by UBS AG, a top-tier investment banking and securities firm, after it froze an account belonging to Hassan Ali Khan, the Pune horse owner, following the $300 million transfer to him—it isn’t clear when— from Khashoggi.
“I would not like to talk about this,” said UBS India managing director and chairperson Manisha Girotra, referring all questions to the bank’s spokesperson.
“As a truly global entity, our policy on such issues is to comply with the laws and regulations in each host country, while at the same time, complying with the banking laws in Switzerland,” the UBS spokesperson said in an email. The spokesperson declined to comment specifically on the arms sale notation.
The government has told the Bombay high court that the Khans are “virtually absconding” and if they are allowed to leave India, investigations could collapse. Khan’s counsel, Milind Sathe, said his client “regularly appeared before the Directorate”. Asked where Khan was, his main lawyer, Mugdha Jadhav, said: “Can’t tell you, sorry.”
At Pune race course, HT found Hassan Ali Khan’s father-in-law, Abbas Ali Khan, who said his son-in-law was “not well” and in Mumbai. He dismissed all allegations.
Hassan Ali Khan has three Indian passports—issued from Pune, Patna and Mumbai; he also applied for passports from Guwahati and Chandigarh— and he and his wife have applied to Switzerland for citizenship, another ED official who did not wish to be identified said. Passport authorities in those three cities are now trying to find out how three passports were issued to Khan.
Kashoggi now lives a quiet life in the principality of Monaco. There is a British warrant out for his arrest.
Another top official at ED who also did not wish to be identified said Kashoggi’s $300-million transfer was “only the tip of the iceberg” and that the agency was trying to connect the dots in the global trail, which also includes evidence of another $290 million in two “fictitious companies” created by Hassan Ali Khan and a friend in the British Virgin Islands in the Caribbean. All the money transfers are recorded in a laptop seized in January 2007 from Hassan Ali Khan’s house in Pune and while investigators believe this is laundered money, there is no direct evidence. They would also need corroboratory evidence to establish that these transfers have anything to do with terror networks.
“These are all false allegations,” said Sathe. Asked about the $300 million transfer from Khashoggi, he said: “When the Enforcement Directorate questions us, we shall give a reply.”
The ED official, who confirmed the agency’s involvement in spiking UBS’ deal with Standard Chartered, said the Swiss bank had told Indian investigators to get a letter rogatory, a formal request from an Indian court to a Swiss court. This is a complicated process and would have needed to be routed through the ministry of external affairs, and it would have involved finding and presenting clear evidence of Hassan Ali’s links to terror.
It now seems apparent that UBS’ stand in the ongoing investigation led to the collapse of its deal with Standard Chartered Bank.
In a December report, Mint said that the Reserve Bank, India’s banking regulator, would not approve the deal because of possible money laundering through the Swiss bank involving certain transactions of Khan. On Friday, RBI declined to comment. “We are a civil body,” a spokesperson said. “Whenever we find violations, issued to be investigated, we hand over the information to the Enforcement Directorate. We have not issued any comments on the issue of UBS.”
In December, Standard Chartered, the parent of Standard Chartered Bank in India, sent a notice to stock exchanges in London and Hong Kong, where it is listed, saying it would not proceed with the deal, without giving a reason.(Hindustan Times)
CRIMES OF RBI & CBI & IT'S COVER-UP
- An appeal to honourable supreme court of India
- An appeal to honourable supreme court of India
The central bank of India Reserve Bank Of India , which is supposed
to direct the fiscal policies of government of India , has failed to
do so. It has enabled many looters in the garb of entrepreneurs , to
swindle the exchequer to the tune of crores of rupees. The premiere
investigating agency of India CBI has failed to nail the culprits.
to direct the fiscal policies of government of India , has failed to
do so. It has enabled many looters in the garb of entrepreneurs , to
swindle the exchequer to the tune of crores of rupees. The premiere
investigating agency of India CBI has failed to nail the culprits.
Hereby , I do request the honourable supreme court of India to treat
this as a PIL application & to provide speedy justice in following
cases.
this as a PIL application & to provide speedy justice in following
cases.
Read the article "Crimes @ RESERVE BANK OF INDIA" @ http://theftinrbi.blogspot.com/
, http://theftinrbi.rediffblogs.com/ , http://theftinrbi.wordpress.com/
, http://theftinrbi.rediffblogs.com/ , http://theftinrbi.wordpress.com/
Read the article "PF scam shame shame judges" @
http://corruptmajority.blogspot.com/ ,
http://corruptjudges.rediffblogs.com/
http://corruptmajority.blogspot.com/ ,
http://corruptjudges.rediffblogs.com/
AN APPEAL TO UNION FINANCE MINISTER GOVERNMENT OF
INDIA
INDIA
An age old saying – AS THE KING SO DOES THE SUBJECTS. In india various
financial scams, crimes & it's cover-ups have taken place amounting to
billions of billions of dollars have taken place, made possible , just
due to the involvement of the king – the netas & government officials
themselves in the shameful act – the crime.
financial scams, crimes & it's cover-ups have taken place amounting to
billions of billions of dollars have taken place, made possible , just
due to the involvement of the king – the netas & government officials
themselves in the shameful act – the crime.
The tax officials are utterly corrupt, the wards of these officials
spend double their pappa's salary just during
weekends. Now, realise their financial might. These ill-gotten wealth
is destabilising our economy & might have even found it's way into the
hands of underworld, terorrists. INDIA WILL BE DEFEATED FROM
CRIMINAL FORCES WITHIN LIKE THIS NOT FROM THE EXTERNAL FORCES.
spend double their pappa's salary just during
weekends. Now, realise their financial might. These ill-gotten wealth
is destabilising our economy & might have even found it's way into the
hands of underworld, terorrists. INDIA WILL BE DEFEATED FROM
CRIMINAL FORCES WITHIN LIKE THIS NOT FROM THE EXTERNAL FORCES.
Hereby, the HRW urges you to make public:
1. the financial worth of finance minister to tax official at circle
level, on annual basis including his spouse's worth & property
details.
level, on annual basis including his spouse's worth & property
details.
2. to make public the NPAs, losses & monies under litigation by both
private & public sector banks annually.
private & public sector banks annually.
3. to make public measures taken to recover these monies.
4. to publish annual accounts with complete details of discretionary
funds allotted to the defence ministry, president, prime minister,
chief ministers , governors & intelligence agencies.
funds allotted to the defence ministry, president, prime minister,
chief ministers , governors & intelligence agencies.
Public want to know whether proper discretion is being applied while
spending.
spending.
R.B.I CURRENCY THEFT CASE – COVER-UP ACT BY C.B.I?
- AN APPEAL TO THE UNION FINANCE MINISTER & CENTRAL VIGILANCE COMMISSION
- AN APPEAL TO THE UNION FINANCE MINISTER & CENTRAL VIGILANCE COMMISSION
Even in ordinary branches of banks , the safety
locker room keys & currency chest room keys are with senior managers
only. with advance of technology various electronic gadgets like
burglar alarms, user id & palm readers are in use. It is quite
shocking to know that , in high security RBI CURRENCY PRESS , mysore
these gadgets were not in use & the keys were easily accessible to
ordinary security guards. Also, in mysore press there is no proper
accounting practices for blank papers issued for printing , after
printing is done accounts of accepted notes & rejected notes is not
at all kept. CBI is putting the whole blame on an ordinary security
guards & hurrying to close the case. The repeated thefts are not at
all possible by security guards alone without the help of insiders /
higher executives. CBI is trying to fool whom?
locker room keys & currency chest room keys are with senior managers
only. with advance of technology various electronic gadgets like
burglar alarms, user id & palm readers are in use. It is quite
shocking to know that , in high security RBI CURRENCY PRESS , mysore
these gadgets were not in use & the keys were easily accessible to
ordinary security guards. Also, in mysore press there is no proper
accounting practices for blank papers issued for printing , after
printing is done accounts of accepted notes & rejected notes is not
at all kept. CBI is putting the whole blame on an ordinary security
guards & hurrying to close the case. The repeated thefts are not at
all possible by security guards alone without the help of insiders /
higher executives. CBI is trying to fool whom?
Even with respect to my complaint regarding
recruitment scandal complaint no: DPG/B/2005/80049 (2) (RBI) new
complaint no: DPG/Z/2005/90040, neither CBI nor secretary ( finance
sector ) department of economic affairs government of india nor the
RBI governor has taken any steps till date , why?
Hereby, e-voice urges the honourable union finance
minister & CENTRAL VIGILANCE COMMISSION to look into the matter & to
provide speedy justice to all concerned.
recruitment scandal complaint no: DPG/B/2005/80049 (2) (RBI) new
complaint no: DPG/Z/2005/90040, neither CBI nor secretary ( finance
sector ) department of economic affairs government of india nor the
RBI governor has taken any steps till date , why?
Hereby, e-voice urges the honourable union finance
minister & CENTRAL VIGILANCE COMMISSION to look into the matter & to
provide speedy justice to all concerned.
C.B.I COVERING UP THEFTS IN R.B.I
Lie detector tests for C.B.I officers ?
Lie detector tests for C.B.I officers ?
Nowadays even free e-mail accounts need password to operate, to
operate a bank locker there are multi level security settings.
However , it is ridiculous, unbelievable to note that in the high
security reserve bank of india currency note press mysore, there were
no different key sets , palm readers, pass words, no different
authorised persons, no troops of security guards, to access the area.
Just only one security guard- a constable.
operate a bank locker there are multi level security settings.
However , it is ridiculous, unbelievable to note that in the high
security reserve bank of india currency note press mysore, there were
no different key sets , palm readers, pass words, no different
authorised persons, no troops of security guards, to access the area.
Just only one security guard- a constable.
It is a cock & bull story of C.B.I, that all alone a single security
guard stole the booty. There must be a crime syndicate. The C.B.I
officers themselves must be subjected to polygraph, brain mapping
tests to know why they are lying , to cover-up whom? The C.B.I has
not answered previous questions raised by us. The C.B.I must answer
the following questions :
guard stole the booty. There must be a crime syndicate. The C.B.I
officers themselves must be subjected to polygraph, brain mapping
tests to know why they are lying , to cover-up whom? The C.B.I has
not answered previous questions raised by us. The C.B.I must answer
the following questions :
1. who were responsible for selling the good printing machine at
security press nasik to scamster karim lala telgi as scrap ?
2. who recruited the candidates below merit rankings in R.B.I for
what criminal roles ?
3. how many irregularities have taken place in R.B.I till date ?
4. who is responsible for installing, operating & supervising the
security set-up in R.B.I ?
5. how the raw materials ie number of paper sheets, ink, etc are
accounted for in inward stores & while issuing for printing ?
6. how wastages, scrap of ink , papers , etc in the printing process
are accounted for?
7. How the finished goods ie currency notes are accounted for ?
8. Who keeps physical figures & possession of goods, inventory of all
the above?
9. How the scrap paper is disposed off ?
10. From security angle who keeps track from start till dispatch ?
security press nasik to scamster karim lala telgi as scrap ?
2. who recruited the candidates below merit rankings in R.B.I for
what criminal roles ?
3. how many irregularities have taken place in R.B.I till date ?
4. who is responsible for installing, operating & supervising the
security set-up in R.B.I ?
5. how the raw materials ie number of paper sheets, ink, etc are
accounted for in inward stores & while issuing for printing ?
6. how wastages, scrap of ink , papers , etc in the printing process
are accounted for?
7. How the finished goods ie currency notes are accounted for ?
8. Who keeps physical figures & possession of goods, inventory of all
the above?
9. How the scrap paper is disposed off ?
10. From security angle who keeps track from start till dispatch ?
ILLEGAL RECRUITMENT IN R.B.I CURRENCY NOTE PRESS RESULTING IN FREQUENT THEFTS ???
Dear sir,
I have applied for the post of STORES ASSISTANT in
1995 & for the post of PROCESS ASSISTANT in 1996 for vaccancies at
Bharatiya Reserve Bank Note Mudran Private Limited ( BRBNMPL) MYSORE
& SALBONI. I didn't even get the interview/written test call letter.
1995 & for the post of PROCESS ASSISTANT in 1996 for vaccancies at
Bharatiya Reserve Bank Note Mudran Private Limited ( BRBNMPL) MYSORE
& SALBONI. I didn't even get the interview/written test call letter.
However candidates with lesser merit ranking were selected. My
requests for a copy of merit ranking list fell on deaf ears.
In the end of 1996, i once again applied for the
posts of PROCESS ASSISTANT & MAINTANANCE ASSISTANT at BRBNMPL. This
time
round i got written test call letters for both posts. I have
successfully cleared the common written test for both posts.
Subsequently i got the interview call letters for both posts. I have
successfully appeared for the common interview for both posts.
However candidates of lesser merit were selected & i didn't get any
communication at all. My repeated requests for MERIT RANKING LIST
fell on deaf ears.
requests for a copy of merit ranking list fell on deaf ears.
In the end of 1996, i once again applied for the
posts of PROCESS ASSISTANT & MAINTANANCE ASSISTANT at BRBNMPL. This
time
round i got written test call letters for both posts. I have
successfully cleared the common written test for both posts.
Subsequently i got the interview call letters for both posts. I have
successfully appeared for the common interview for both posts.
However candidates of lesser merit were selected & i didn't get any
communication at all. My repeated requests for MERIT RANKING LIST
fell on deaf ears.
It is the criminals in R.B.I MANAGEMENT who
declared a good printing machine at nasik security press as scrap &
sold it to fake stamp paper king pin karim lala telgi It may be
possible that the criminals in the R.B.I MANAGEMENT selected
candidates who suited their criminal objectives. As a result there is
frequent occurrence of currency thefts & related
irregularities at R.B.I CURRENCY NOTE PRESS, mysore & salboni.
Hereby, i call upon the C.B.I to look into this matter.
declared a good printing machine at nasik security press as scrap &
sold it to fake stamp paper king pin karim lala telgi It may be
possible that the criminals in the R.B.I MANAGEMENT selected
candidates who suited their criminal objectives. As a result there is
frequent occurrence of currency thefts & related
irregularities at R.B.I CURRENCY NOTE PRESS, mysore & salboni.
Hereby, i call upon the C.B.I to look into this matter.
Also, hereby i urge you to provide me justice by giving merit ranking
lists of all recruitments made from 1995onwards till date.
Specifically, for the above mentioned 4 posts in accordance with the
TRANSPARENCY /RIGHT TO INFORMATION ACT of government of india.
lists of all recruitments made from 1995onwards till date.
Specifically, for the above mentioned 4 posts in accordance with the
TRANSPARENCY /RIGHT TO INFORMATION ACT of government of india.
SATYAM CO FRAUD - ARE YOU SINCERELY READY TO CATCH TAX THEIVES , CORPORATE CRIMINALS ? - AN APPEAL TO UNION FINANCE MINISTER & KARNATAKA STATE FINANCE MINISTER
Corporate fraud is nothing new to india , satyam company is just a
new addition to it. Satyam co was able to commit such a huge fraud &
keep it under wraps for years goes to prove the honesty , integrity of
our public servants , government officials belonging to SEBI , RBI ,
tax dept , pollution control , labour depts. , etc & the honesty of
auditors & company secretaries. Ofcourse , still there are few honest
people in public service , auditing & company secretaryship , but
majority of them are hand in gloves with corporate criminals.
Definitely , this fraud will also be brushed under the carpet after
certain time as other frauds happened , afterall these frauds are the
money spinners for political party funding , mafia , underworld &
other criminal activities.
In india , tax compliance is worse. In our criminal justice system,
there is rigorous imprisonment for a pick-pocketer stealing Rs.10.
even the authorities spend thousands of rupees in legally prosecuting
him & the thief spends a year or more as punishment behind bars. Where
as there is no commensurate investigation nor legal prosecution nor
punishment for corporate thieves , evading tax to the tune of crores
of rupees. In contrast, those tax thieves pay a part of that booty to
the ministers & political parties and get crores of rupees tax
exemptions , incentives from the government. Government is rewarding
corporate criminals.
The tax officials of central & state governments
are hand in glove with these corporate criminals & traders. For a
price, they are helping corporates & traders in evading tax. Most of
the tax officials are wealthy & leading luxurious lifestyles , much
beyond the scope of their legal income. The black money thus generated
every year by tax evasion , is many times more than our total annual
budget allocation. As a result, all our fiscal reforms fail &
inflation is soaring. This black money is the source of illegal
funding of political parties , terrorist outfits & underworld. It is a
greater threat to national unity & integrity.
Both the central government & karnataka state
government have failed to collect the full , actual tax dues from
corporates & traders. As a result , the governments don't have enough
money in their coffers even to provide basic needs like health care ,
education , safe drinking water , etc to the poor & needy. For every
Rs.100 tax evaded , one poor patient is dying without medical care ,
10 poor persons lack education , 100 persons don't get safe drinking
water , 100 persons barely survive on a single piece meal per day , 20
persons starve. Most of The government officials , ministers &
people's representatives who have deliberately failed in their duties
of tax collection & welfare of poor citizens , SHAMELESSLY indulge in
luxurious lifestyle at the expense of poor tax payer . they live in
paltial bungalows , chauffer driven AC cars , all living food expenses
paid by exchequer , dine at 5-star hotels , only drink bottled mineral
water , eat non-vegetarian dishes , drink alcohol sitting before
mahatma gandhi's photograph & preaching mahatma's ideals. Mahatma
preached & practiced simple living , vegetarianism & he was teto
teller , he paid for his expenses from his earnings . these public
servants are parasites , who are making merry at the expense of tax
payer.
Some non government organisations ( NGO) have
formed trusts and under the aegis of those trusts are running
educational institutions , hospitals , community halls , etc , in the
name of providing free / subsidised services like education , health
care , etc to the poor. It is only in record books , they conduct fake
medical camps , self employment training camps . in practice they are
running these educational institutions , hospitals & community halls
as commercial enterprises & collecting huge fees. they are not even
remitting full fees collected to the trust account & swindling the
money. no outsider is allowed to become a member of these NGOs , only
their cronies & their family members are in these trusts.
Numerous NGOs promoted by religious bodies , mutts
are swindling public & government money to the tune of crores of
rupees. Nobody dares to question the heads , pontiffs of these
mutts , as at his feet VVIPs , ministers fall down. These religious
bodies are hot beds of fundamentalism , terrorism & mafia. Hwere is
the accountability of religious bodies & political parties in in
india ?
Inspite of bringing specific cases to the notice
of authorities , they are mum ? hereby , E-VOICE OF HUMAN RIGHTS WATCH
offers it's services ( subject to conditions ) to the governments of
india & karnataka , in apprehending the criminals – tax evaders. Are
you ready?
there is rigorous imprisonment for a pick-pocketer stealing Rs.10.
even the authorities spend thousands of rupees in legally prosecuting
him & the thief spends a year or more as punishment behind bars. Where
as there is no commensurate investigation nor legal prosecution nor
punishment for corporate thieves , evading tax to the tune of crores
of rupees. In contrast, those tax thieves pay a part of that booty to
the ministers & political parties and get crores of rupees tax
exemptions , incentives from the government. Government is rewarding
corporate criminals.
The tax officials of central & state governments
are hand in glove with these corporate criminals & traders. For a
price, they are helping corporates & traders in evading tax. Most of
the tax officials are wealthy & leading luxurious lifestyles , much
beyond the scope of their legal income. The black money thus generated
every year by tax evasion , is many times more than our total annual
budget allocation. As a result, all our fiscal reforms fail &
inflation is soaring. This black money is the source of illegal
funding of political parties , terrorist outfits & underworld. It is a
greater threat to national unity & integrity.
Both the central government & karnataka state
government have failed to collect the full , actual tax dues from
corporates & traders. As a result , the governments don't have enough
money in their coffers even to provide basic needs like health care ,
education , safe drinking water , etc to the poor & needy. For every
Rs.100 tax evaded , one poor patient is dying without medical care ,
10 poor persons lack education , 100 persons don't get safe drinking
water , 100 persons barely survive on a single piece meal per day , 20
persons starve. Most of The government officials , ministers &
people's representatives who have deliberately failed in their duties
of tax collection & welfare of poor citizens , SHAMELESSLY indulge in
luxurious lifestyle at the expense of poor tax payer . they live in
paltial bungalows , chauffer driven AC cars , all living food expenses
paid by exchequer , dine at 5-star hotels , only drink bottled mineral
water , eat non-vegetarian dishes , drink alcohol sitting before
mahatma gandhi's photograph & preaching mahatma's ideals. Mahatma
preached & practiced simple living , vegetarianism & he was teto
teller , he paid for his expenses from his earnings . these public
servants are parasites , who are making merry at the expense of tax
payer.
Some non government organisations ( NGO) have
formed trusts and under the aegis of those trusts are running
educational institutions , hospitals , community halls , etc , in the
name of providing free / subsidised services like education , health
care , etc to the poor. It is only in record books , they conduct fake
medical camps , self employment training camps . in practice they are
running these educational institutions , hospitals & community halls
as commercial enterprises & collecting huge fees. they are not even
remitting full fees collected to the trust account & swindling the
money. no outsider is allowed to become a member of these NGOs , only
their cronies & their family members are in these trusts.
Numerous NGOs promoted by religious bodies , mutts
are swindling public & government money to the tune of crores of
rupees. Nobody dares to question the heads , pontiffs of these
mutts , as at his feet VVIPs , ministers fall down. These religious
bodies are hot beds of fundamentalism , terrorism & mafia. Hwere is
the accountability of religious bodies & political parties in in
india ?
Inspite of bringing specific cases to the notice
of authorities , they are mum ? hereby , E-VOICE OF HUMAN RIGHTS WATCH
offers it's services ( subject to conditions ) to the governments of
india & karnataka , in apprehending the criminals – tax evaders. Are
you ready?
MEGA FRAUD BY GOVERNMENT OF INDIA – Rs 85 000 crore tax arrears waiver + non performing assets of banks to the tune of Rs. 200 000 crore
- An appeal to Honourable Supreme Court of India
- An appeal to Honourable Supreme Court of India
India has become an IT power , taken giant strides in the field of
science & technology. More & more MNCs are investing in India. However
due to our skewed , corrupt economic system , lack of accountability
on the part of corporates & public servants – a wide chasm has been
created between the ultra rich & the poor , the fruits of development
has all been usurped by the rich & mighty. This is the basic reason
for growth of black economy , growth of naxalism , terrorism &
underworld in India. As per a recent study by UN organization ,
majority of Indians ie more than 50 crore Indians are barely
sustaining on Rs.13 per day earnings , a whole family depends upon Rs.
13 , they are struggling to get just single meal per day. People are
starving to death , farmers are committing suicides , people are
selling their own children for a bag of grains. Whereas , corporate
biggies , public servants are leading luxurious lifestyles , having
big parties full of drinks , non-veg foods not at their papaa's
expense but at the expense of public exchequer , out of the tax dues ,
loan repayments cheated to the public exchequer.
science & technology. More & more MNCs are investing in India. However
due to our skewed , corrupt economic system , lack of accountability
on the part of corporates & public servants – a wide chasm has been
created between the ultra rich & the poor , the fruits of development
has all been usurped by the rich & mighty. This is the basic reason
for growth of black economy , growth of naxalism , terrorism &
underworld in India. As per a recent study by UN organization ,
majority of Indians ie more than 50 crore Indians are barely
sustaining on Rs.13 per day earnings , a whole family depends upon Rs.
13 , they are struggling to get just single meal per day. People are
starving to death , farmers are committing suicides , people are
selling their own children for a bag of grains. Whereas , corporate
biggies , public servants are leading luxurious lifestyles , having
big parties full of drinks , non-veg foods not at their papaa's
expense but at the expense of public exchequer , out of the tax dues ,
loan repayments cheated to the public exchequer.
The banks insist on matching collateral security even for self
employment / educational loans by poor for an amount of Rs.5000. if
the loans are not paid in time , rowdies / recovery agents are sent by
banks to collect the amount by muscle power. As a final step , banks
auction-off properties of collateral security to recover it's dues.
Even, the tax authorities mercilessly extract tax dues to the last
penny from the middle class.
employment / educational loans by poor for an amount of Rs.5000. if
the loans are not paid in time , rowdies / recovery agents are sent by
banks to collect the amount by muscle power. As a final step , banks
auction-off properties of collateral security to recover it's dues.
Even, the tax authorities mercilessly extract tax dues to the last
penny from the middle class.
The same banks, overestimate the project cost of corporates ,
overestimate the project feasibility & it's worth and coolly extend
hundreds of crores of rupees loans without matching collateral
security. The banks extend overdraft facilities without matching
collateral securities , to these corporates. When loans are not
repaid, no rowdies are sent by banks. The promoters , directors of
such tainted corporates drain – off the companies resources cunningly
through insider trading , finally making the company sick. Such
companies don't pay taxes , electricity bills , water bills , etc
properly to respective authorities. The authorities are deaf , dumb &
blind to all these actions of such corporates. At the end , banks
write-off such loans as non performing assets (NPA) & file case before
courts for recovery of dues. Even if the properties of collateral
security are auctioned-off dues cann't be fully realized. Finally
public money is swindled . ALL THIS IS POSSIBLE DUE TO THE CONNIVANCE
OF KEY BANK OFFICIALS , TAX OFFICIALS WITH CRIMINAL CORPORATES SINCE
THE INCEPTION OF SUCH COMPANIES . THIS ALSO POSES UNFAIR COMPETITION
TO HONEST CORPORATES. How to stop this ? by making corporate
accountability ,accountability of bank , tax officials more stringent
with penal provisions . afterall , they are playing with public money
not their papa's property.
overestimate the project feasibility & it's worth and coolly extend
hundreds of crores of rupees loans without matching collateral
security. The banks extend overdraft facilities without matching
collateral securities , to these corporates. When loans are not
repaid, no rowdies are sent by banks. The promoters , directors of
such tainted corporates drain – off the companies resources cunningly
through insider trading , finally making the company sick. Such
companies don't pay taxes , electricity bills , water bills , etc
properly to respective authorities. The authorities are deaf , dumb &
blind to all these actions of such corporates. At the end , banks
write-off such loans as non performing assets (NPA) & file case before
courts for recovery of dues. Even if the properties of collateral
security are auctioned-off dues cann't be fully realized. Finally
public money is swindled . ALL THIS IS POSSIBLE DUE TO THE CONNIVANCE
OF KEY BANK OFFICIALS , TAX OFFICIALS WITH CRIMINAL CORPORATES SINCE
THE INCEPTION OF SUCH COMPANIES . THIS ALSO POSES UNFAIR COMPETITION
TO HONEST CORPORATES. How to stop this ? by making corporate
accountability ,accountability of bank , tax officials more stringent
with penal provisions . afterall , they are playing with public money
not their papa's property.
Already , by the connivance of public servants , bank , tax officials
we have witnessed many scams like harshad Mehta , ketan parekh ,
hawala , etc and more than Rs. 2000000 crore NPAs are on the books of
the banks. Now, the government of India is planning to waive-off tax
arrears of corporates to the tune of Rs.85000 crore , why ? read
vijaya Karnataka kannada daily dated 04th January 2007. just look at
this in the backdrop of "QUESTIONS FOR MONEY BY SOME MPs" and "MP
LOCAL AREA DEVELOPMENT FUND ALLOCATION FOR A PRICE SCANDAL". The
government is always unresponsive , careless towards the sufferings
of poor , however it is always on toes to help out corporates that too
criminal ones but not honest corporates. Why ?
we have witnessed many scams like harshad Mehta , ketan parekh ,
hawala , etc and more than Rs. 2000000 crore NPAs are on the books of
the banks. Now, the government of India is planning to waive-off tax
arrears of corporates to the tune of Rs.85000 crore , why ? read
vijaya Karnataka kannada daily dated 04th January 2007. just look at
this in the backdrop of "QUESTIONS FOR MONEY BY SOME MPs" and "MP
LOCAL AREA DEVELOPMENT FUND ALLOCATION FOR A PRICE SCANDAL". The
government is always unresponsive , careless towards the sufferings
of poor , however it is always on toes to help out corporates that too
criminal ones but not honest corporates. Why ?
HRW has extended it's services to GOI months back itself , to
apprehend tax thieves , till date there is no reply from GOI , why ?
apprehend tax thieves , till date there is no reply from GOI , why ?
Hereby , E-VOICE OF HRW requests the Honourable Supreme Court of India
to order GOI ,
to order GOI ,
1. to make necessary amendments to companies act , to make the
promoters , directors of the corporates personally accountable for all
their actions.
2. to constitute committees consisting of public persons with powers
to scrutinize & verify all the actions of corporates for insider
trading like – selling products , materials , shares to their sister
concerns at discounted prices or buying products , materials ,
shares from their sister concerns at inflated prices or lending loans
at discount rates to their sister concerns or taking loans from their
sister concerns at high rate of interest or loaning materials ,
machines to their sister concerns , etc.
3. to constitute committees consisting of public persons , to
scrutinize & verify the annual personal tax returns filed by key bank
officials & tax officials , who have amassed riches & leading
luxurious life styles much beyond the scope of their legal known
sources of income.
4. to recover all tax dues , loan dues , etc from the corporates from
the personal properties , wealth of promoters , directors of such
companies.
5. to put behind bar the key bank officials who have helped the
corporates in swindling public money by overestimating project
viability , worth and by overlooking the insider trading of promoters
and still extending loans to them.
6. to put behind bars tax officials who have helped such corporates
in swindling public money.
7. to take all the necessary help from public like as services
extended by HRW in apprehending tax thieves.
8. to recover & protect public money at any cost.
9. to confiscate all money , properties possessed by directors of such
criminal corporates & properties of corrupt bank , tax officials ,
public servants.
10. to declare illegal black money kept by corporate criminals ,
politicians , etc in the banks of tax haven countries like Trinidad ,
Mauritius , Switzerland , etc as national property of India , as
public property of government of India & to secure that money to
Indian exchequer.
promoters , directors of the corporates personally accountable for all
their actions.
2. to constitute committees consisting of public persons with powers
to scrutinize & verify all the actions of corporates for insider
trading like – selling products , materials , shares to their sister
concerns at discounted prices or buying products , materials ,
shares from their sister concerns at inflated prices or lending loans
at discount rates to their sister concerns or taking loans from their
sister concerns at high rate of interest or loaning materials ,
machines to their sister concerns , etc.
3. to constitute committees consisting of public persons , to
scrutinize & verify the annual personal tax returns filed by key bank
officials & tax officials , who have amassed riches & leading
luxurious life styles much beyond the scope of their legal known
sources of income.
4. to recover all tax dues , loan dues , etc from the corporates from
the personal properties , wealth of promoters , directors of such
companies.
5. to put behind bar the key bank officials who have helped the
corporates in swindling public money by overestimating project
viability , worth and by overlooking the insider trading of promoters
and still extending loans to them.
6. to put behind bars tax officials who have helped such corporates
in swindling public money.
7. to take all the necessary help from public like as services
extended by HRW in apprehending tax thieves.
8. to recover & protect public money at any cost.
9. to confiscate all money , properties possessed by directors of such
criminal corporates & properties of corrupt bank , tax officials ,
public servants.
10. to declare illegal black money kept by corporate criminals ,
politicians , etc in the banks of tax haven countries like Trinidad ,
Mauritius , Switzerland , etc as national property of India , as
public property of government of India & to secure that money to
Indian exchequer.
QUESTIONS FOR MONEY – PARLIAMENTARY ACTS & LEGISLATIONS FOR ???? - improper functioning of democracy in india
the vohra committee report has proved the criminalisation of
politics in india. There are many number of criminals in the
parliament & state legislatures. Some of those criminals are cabinet
ministers as well as members of vital parliamentary committees.
Thereby, they are in a position to manipulate , enact laws favouring ,
benefitting the criminals their cronies.
politics in india. There are many number of criminals in the
parliament & state legislatures. Some of those criminals are cabinet
ministers as well as members of vital parliamentary committees.
Thereby, they are in a position to manipulate , enact laws favouring ,
benefitting the criminals their cronies.
Just see how the GOI gave export incentive of Rs.1800 crore to
reliance petroleum although it didn't even export a barrel. Reliance
infocom & tata teleservices were CDMA mobile service providers & have
paid license fee of few crores only equal to landline fees without any
competitive bidding . They were supposed to provide mobile service to
operate like fixed phones within a radius of 40k.m. however they were
providing service like mobile service from one state to another like
GSM mobile service providers. By this act of RIC & TTSL , the GSM
providers who have paid thousands of license fee in competitive
bidding were economically hurt , the dispute went to court. The court
was on the verge of pronouncing it's verdict awarding damages worth Rs.
18000 crore to GSM players & Rs. 3000 crore of license fees with
penalty to GOI. The government announced a unified telecom license
regime with retrospective effect. Thereby, the GOI lost thousands of
crores of rupees & the share holders of GSM players lost thousands of
crores. Onceagain the RIC was charged by PSU bsnl THAT RELIANCE IS RE-
ROUTING INTERNATIONAL CALLS AS LOCAL CALLS & SWINDLING THE GOI. This
time too, GOI bailed it out. during the dispute between ambani
brothers the younger ambani mr. Anil ambani director of reliance
himself has stated that for the favours received from the GOI , the
company gifted some shares to then IT & COMMUNICATIONS MINISTER mr.
Pramod mahajan.
reliance petroleum although it didn't even export a barrel. Reliance
infocom & tata teleservices were CDMA mobile service providers & have
paid license fee of few crores only equal to landline fees without any
competitive bidding . They were supposed to provide mobile service to
operate like fixed phones within a radius of 40k.m. however they were
providing service like mobile service from one state to another like
GSM mobile service providers. By this act of RIC & TTSL , the GSM
providers who have paid thousands of license fee in competitive
bidding were economically hurt , the dispute went to court. The court
was on the verge of pronouncing it's verdict awarding damages worth Rs.
18000 crore to GSM players & Rs. 3000 crore of license fees with
penalty to GOI. The government announced a unified telecom license
regime with retrospective effect. Thereby, the GOI lost thousands of
crores of rupees & the share holders of GSM players lost thousands of
crores. Onceagain the RIC was charged by PSU bsnl THAT RELIANCE IS RE-
ROUTING INTERNATIONAL CALLS AS LOCAL CALLS & SWINDLING THE GOI. This
time too, GOI bailed it out. during the dispute between ambani
brothers the younger ambani mr. Anil ambani director of reliance
himself has stated that for the favours received from the GOI , the
company gifted some shares to then IT & COMMUNICATIONS MINISTER mr.
Pramod mahajan.
Various indian & multinational companies are looting indian
exchequer to the tune of thousands of crores of rupees , through
lobbying / bribing. Take the recent case of allotment of 3G spectrum.
exchequer to the tune of thousands of crores of rupees , through
lobbying / bribing. Take the recent case of allotment of 3G spectrum.
In india, indirect democracy is the form of governance. In this
form, people's representatives are bound to raise the questions ,
issues concerning their constituents on their behalf , on the floor of
the house. However the sad part in india even after 58 years of
democracy , is the lobbying is at it's peak. The lobbying is a
gentleman's white collared crook's way of forming favour seeker's
group , creating a corpus to pay lumpsum bribe & influencing decision
making.
The people's representatives are bound to represent their people
first , then their party & party think tanks. India has come to this
sorry state of affairs , widespread corruption , huge black economy &
rampant poverty, all due to inefficient legislations & enforcements.
These think tanks & IAS lobby, consider themselves as most super
brains on earth & gives out suggestions . the present state of affairs
is a barometer of their brilliance. These think tanks & IAS lobby are
the hand maidens of lobbyists / bribers.
form, people's representatives are bound to raise the questions ,
issues concerning their constituents on their behalf , on the floor of
the house. However the sad part in india even after 58 years of
democracy , is the lobbying is at it's peak. The lobbying is a
gentleman's white collared crook's way of forming favour seeker's
group , creating a corpus to pay lumpsum bribe & influencing decision
making.
The people's representatives are bound to represent their people
first , then their party & party think tanks. India has come to this
sorry state of affairs , widespread corruption , huge black economy &
rampant poverty, all due to inefficient legislations & enforcements.
These think tanks & IAS lobby, consider themselves as most super
brains on earth & gives out suggestions . the present state of affairs
is a barometer of their brilliance. These think tanks & IAS lobby are
the hand maidens of lobbyists / bribers.
THREAT TO INDIA'S SECURITY BY CORPORATE CRIMINALS
- An appeal to honourable prime minister of india & honourable chief
minister of karnataka
- An appeal to honourable prime minister of india & honourable chief
minister of karnataka
In india , since ages certain section of people – dalits , tribals are
being oppressed in the name of caste by forward caste people. The name
sake independence has not changed the lives of dalits & tribals. The
upper caste people were in control of government & economic sector
before independence as well as after independence too. The upper caste
people are now MPs , MLAs & are running businesses . they have framed
rules , laws to suit their ends. They are getting bank loans ,
subsidies , tax cuts , etc , by greasing the palms of those in power –
their own caste men. The reservation policy is just a vote winning
gimmick of forward caste politicians , it is neo divide & rule policy.
Only few dalits with money & contacts have benefitted , by the
reservation policy of government. Majority of them are still
sufferring from utter poverty & social oppression.
Now, due to rapid industrialisation & globalisation a new economic
divide has taken place – rich & poor , haves & have nots. Now,
economically poor are also being oppressed along with dalits. The
forward caste people in government have framed laws to suit their
ends , they have provided concessional priority loans , tax cuts ,
subsidies , etc from the government to corporate sector . The
corporate sector has demanded & got monetary benefits , infrastructure
facilities from the government . however the same corporates , MNCs
are violating statuotary laws & are averse to social welfare measures
of the government . they are averse to provide jobs to dalits ,
tribals & poor , why ? these corporates are bribing the labour , tax
department & other government officials . as a result the government
is loosing tax revenues to the tune of thousands of crores every
year , the government doesn't have money to provide social welfare
measures to common people. The lives of common people are under
threat. Now,
the number of common people dying due to starvation , lack of health
care is more than in a war field. The threat to unity & integrity of
india is more from the corporate sector than pakistan or china.
Now, the government of india & other state governments are literally
under corporate control. we have brought to the notice of government
cases of statuotary law violations by various corporate entities ,
till date no action has been taken. Why ? hereby , we once again
offers it's conditional services to the government of india &
karnataka in apprehending corporate criminals , corrupt tax , labour ,
pollution control board offricials. Are you ready sir ????
Black money in foreign banks amounts to plunder of nation: Supreme Court
Black money stashed away in foreign banks is not just a case of tax evasion, it is “mind- boggling crime” amounting to “theft and plunder of national wealth’’, the Supreme Court said on Wednesday.
In a frank message to the Union government, the court wanted it to realise the gravity of the issue. “We are talking about mind-boggling crime. We are not on the niceties of various treaties,’’ a bench of justices B Sudershan Reddy and SS Nijjar told solicitor-general Gopal Subramanium.
Earlier, the government had contended that money in foreign banks was a case of tax evasion and it cannot make public the names of Indian account holders.
“The authorities have to go on the basis of mutual agreement with various countries where the money is stashed,’’ Subramium said.
“This is the problem worrying us. It is not only about tax evasion and has something more,’’ the bench said after it was pointed out that the source of the money could be narcotics, terror fund or arms dealing.
The court was hearing a petition filed by noted criminal lawyer Ram Jethmalani and some retired bureaucrats and police officers.
Standard Chartered Bank’s draft red herring prospectus to raise $500 million-$700 million through the first-ever issue of Indian Depository Receipts (IDRs) has completely blanked out at least 15 litigations pending against it in connection with the securities scam of 1992 and a foreign exchange scandal involving the misuse of its vostro account, also in the 1990s.
The prospectus has reportedly been cleared by the Securities and Exchange Board of India (SEBI), which is fully aware that most litigations pertaining to the 1992 scam are still dragging their way through the Indian judicial system. It is shocking that the Bank has attempted to avoid disclosure, given that the Bank's deep involvement in the scam is widely known in India and the IDRs are being sold to Indian investors. What is worse, when asked about the failure to disclose litigation pending against the Bank, SEBI has chosen to not to respond to the emails marked to the entire top brass of the Bank.
On checking with the Bank, Arijit De, head of external communications, has this to say: “With reference to your email to Neeraj Swaroop, our response is as below: The IDRs represent the shares of Standard Chartered PLC, UK , the ultimate parent company of Standard Chartered Bank, India. In accordance with the disclosure requirements under SEBI Regulations, IDR Rules, other applicable laws and international practice, SC PLC has made appropriate disclosures of all material issues in the draft offer document filed with SEBI. We have nothing further to add beyond what is disclosed in the DRHP.”
However, a simple reading of page 414 of its draft red herring prospectus suggests otherwise. It says: “As of the date of this Draft Red Herring Prospectus, neither the Company, any member of the Group, any Director, or any material associate of the Company (emphasis ours) are involved in any material governmental, legal or arbitration proceedings or litigation and the Company is not aware of any pending or threatened material governmental, legal or arbitration proceedings or litigation relating to the Company, any member of the Group, any Director or any material associate which, in either case, may have a significant effect on the performance of the Group, and there are no liabilities or defaults (including arrears and potential liabilities) in relation to such material proceedings or litigation which would be required to be disclosed under the SEBI Regulations.”
Moreover, the cases filed by the Enforcement Directorate and in the Special Court do not all pertain to the Indian operations (the Bank's Indian operation itself is significantly large and important, especially after the impact of the global financial crisis). In fact, many of them specifically name a former chairman of the Bank, Rodney Galpin.
Moreover, the cases filed by the Enforcement Directorate and in the Special Court do not all pertain to the Indian operations (the Bank's Indian operation itself is significantly large and important, especially after the impact of the global financial crisis). In fact, many of them specifically name a former chairman of the Bank, Rodney Galpin.
Among the cases that we have information about include some in the Special Court set up to try the securities scam related offences (MA 365/2003 – SCB v/s the Custodian & others; Suit 45 of 1995 SCB v/s Andhra Bank; Suit No 6 of 1994 SCB v/s Andhra Bank and Suit No 32 of SCB v/s Andhra Bank). Then there are at least half a dozen cases filed by the Enforcement Directorate, many of them in 2002. We have sent a list of all these cases to SEBI, but have no response from the regulator.
Are these cases serious enough to make a difference to the Bank's global operations and performance? Probably not. Also, many Indian companies have successfully raised funds, even after disclosing that the main promoters were accused of murder or worse. The issue is the Bank's lack of transparency, while selling a financial instrument to Indian investors.
What is worse, the failure to insist on this disclosure reflects even more badly on the market watchdog. In its very first IDR clearance, SEBI has shown that it is probably overawed with the international bank's plans to raise funds in India or its fat, 801-page offer document. Either way, it is not insisting on the same transparency and disclosure standards that it expects from Indian companies, which should be a matter of serious concern, given that global banks have not covered themselves in glory in the lead-up to the financial crisis of 2008. — Sucheta Dalal
Too many loopholes
Hidden-camera videos of the country's three leading private banks' officials allegedly advising customers on money-laundering recently kicked up a storm. Heads have started to roll at the junior levels in these banks - ICICI, HDFC and Axis. But punishing wrongdoers is unlikely to stem the irregularities. A commenter on Cobrapost.com, the Delhi-based website which conducted the sting, hit the nail on the head. He said the problem was not just these three banks - it was that the entire system was riddled with loopholes. "It's a good opportunity for the regulators to plug these loopholes," he wrote.
He pointed to the multiplicity of acceptable identity documents - for instance, the PAN (permanent account number) card, passport and Aadhaar unique identification (UID) number - and the fact that none of them are interlinked. "It's a real pity for a country which produces some of the best IT talents in the world," he added. Contrast India with the United States, where social security numbers are in place since 1935.
He pointed to the multiplicity of acceptable identity documents - for instance, the PAN (permanent account number) card, passport and Aadhaar unique identification (UID) number - and the fact that none of them are interlinked. "It's a real pity for a country which produces some of the best IT talents in the world," he added. Contrast India with the United States, where social security numbers are in place since 1935.
There are numerous problems at multiple levels - the industry regulator, the government, and the banks themselves. At the level of the bank, the core issue is the approach to banking, as banks are caught up in an aggressive sales culture. The ones named in Cobrapost's allegations have said they do business ethically. However, all three declined to speak to Business Today until they had investigated the matter fully.
At the level of the regulator - the Reserve Bank of India (RBI) - there is an urgent need to improve the frequency and quality of inspection. More importantly, there is a need to overhaul Know Your Customer (KYC) norms for financial intermediaries such as banks, non-banking financial companies (NBFCs), insurers and mutual funds.
And at the government level, there is a need to speed up Aadhaar - the national unique identification (UID) number project - as it would eliminate the multiplicity of documents.
The central bank's KYC guidelines require banks to collect three documents - photographs, identity proof, and address proof - from customers before they can open an account or get a locker. If a customer has no UID number, the bank has no option but to accept documents such as voter ID, electricity bill, passport, or PAN card.
"The root cause of many of the problems today is the multiplicity of enforcement agencies, array of regulations and variety of documents for the identification of a single person," says Pavan Kumar Vijay, Managing Director of Corporate Professional Group, a corporate advisory firm.
The Cobrapost videos show bankers asking for easily available KYC documents, and, in some cases, even advising customers not to submit a PAN card so they can stay off the tax radar. Bankers say some customers get away with submitting a lease agreement and rent receipts as address proof. "These are the most suspect cases, where the bank should do a ground check or periodically re-check whether the customer still has the same residence or job," says the chairman of a public sector bank.
At the level of the regulator - the Reserve Bank of India (RBI) - there is an urgent need to improve the frequency and quality of inspection. More importantly, there is a need to overhaul Know Your Customer (KYC) norms for financial intermediaries such as banks, non-banking financial companies (NBFCs), insurers and mutual funds.
And at the government level, there is a need to speed up Aadhaar - the national unique identification (UID) number project - as it would eliminate the multiplicity of documents.
The central bank's KYC guidelines require banks to collect three documents - photographs, identity proof, and address proof - from customers before they can open an account or get a locker. If a customer has no UID number, the bank has no option but to accept documents such as voter ID, electricity bill, passport, or PAN card.
"The root cause of many of the problems today is the multiplicity of enforcement agencies, array of regulations and variety of documents for the identification of a single person," says Pavan Kumar Vijay, Managing Director of Corporate Professional Group, a corporate advisory firm.
The Cobrapost videos show bankers asking for easily available KYC documents, and, in some cases, even advising customers not to submit a PAN card so they can stay off the tax radar. Bankers say some customers get away with submitting a lease agreement and rent receipts as address proof. "These are the most suspect cases, where the bank should do a ground check or periodically re-check whether the customer still has the same residence or job," says the chairman of a public sector bank.
Some banks accept a company ID card as proof of identity, and a letter from an employer as residence proof. That is in line with RBI guidelines, but banks are also required to update the customer data from time to time. But many bankers say these checks get short shrift, as the bank is focused on attracting new customers.
"The problem is not with the KYC, but its implementation," says M.D. Mallya, who recently retired as Chairman of the state-owned Bank of Baroda. He may be right, as the genuineness of even crucial government-issued documents is not always above quest ion.
According to the Comptroller and Auditor General (CAG), there were close to 96 million PAN cards as of March 2010, but only 34 million tax returns were filed.
The PAN card is one of the most abused documents. The CAG noted in 2010/11 that big tax evaders spread out their money by opening multiple bank accounts with fake PAN cards. Tackling PAN card fraud is not enough, though. The Income Tax Act allows those who claim not to have a PAN card to fill out Form 60 and say they have no taxable income, or Form 61 to say their income is from agriculture. A Cobrapost video shows a banker allegedly advising an undercover re-porter to fill out Form 60 to avoid detection by tax authorities.
So just by filing Form 60 and without submitting a PAN card, a tax evader can deposit cash of over Rs 50,000 in a bank or post office, no questions asked. According to banking industry sources, the RBI and the finance ministry are investigating cases in which banks have not reported transactions backed by Form 60 or 61 to the government's Financial Intelligence Unit (FIU).
"The problem is not with the KYC, but its implementation," says M.D. Mallya, who recently retired as Chairman of the state-owned Bank of Baroda. He may be right, as the genuineness of even crucial government-issued documents is not always above quest ion.
According to the Comptroller and Auditor General (CAG), there were close to 96 million PAN cards as of March 2010, but only 34 million tax returns were filed.
The PAN card is one of the most abused documents. The CAG noted in 2010/11 that big tax evaders spread out their money by opening multiple bank accounts with fake PAN cards. Tackling PAN card fraud is not enough, though. The Income Tax Act allows those who claim not to have a PAN card to fill out Form 60 and say they have no taxable income, or Form 61 to say their income is from agriculture. A Cobrapost video shows a banker allegedly advising an undercover re-porter to fill out Form 60 to avoid detection by tax authorities.
So just by filing Form 60 and without submitting a PAN card, a tax evader can deposit cash of over Rs 50,000 in a bank or post office, no questions asked. According to banking industry sources, the RBI and the finance ministry are investigating cases in which banks have not reported transactions backed by Form 60 or 61 to the government's Financial Intelligence Unit (FIU).
Finance Minister P. Chidambaram
Eventually, Aadhaar will resolve the KYC issue. But until that happens, some argue, it is impossible to require just one or a few documents as acceptable proof of identity and residence. "There is the issue of financial inclusion, or people having different sets of documents," says a banker from one of three banks named by Cobrapost. He adds that some people genuinely do not have taxable income, many do not have a passport, and for some, the only address proof is an employer's letter.
"Banking is a serious business where service, compliance and safety are core elements," says A.K. Khandelwal, former Bank of Baroda chairman and author of the book Dare to Lead. But private banks have a strong culture of cross-selling their subsidiaries' products, and increasing the number of savings and cur rent account deposits.
"Nurturing an ethics-based corporate culture, with provisions to claw back performance-based incentives... can help correct the current approach of mobilising fresh business by any means," adds Khandelwal.
The Cobrapost expose shows bankers allegedly marketing insurance products to convert black money into white. Insurance products are profitable, because the bank earns a high first-year commission on the premium. The bank manager could benefit, too: many banks and insurers offer rewards for high sales, such as foreign junkets.
Insurance products are easy to sell. The bank's KYC requirements are sufficient proof for investing any amount in an insurance scheme. A PAN card is not necessary, even though some single-premium policy amounts are as high as Rs 30 lakh. Many banks sell policies that mature after seven years. At that point, nobody can question the source of the money, because income-tax laws do not require banks to keep records for more than seven years.
"Nurturing an ethics-based corporate culture, with provisions to claw back performance-based incentives... can help correct the current approach of mobilising fresh business by any means," adds Khandelwal.
The Cobrapost expose shows bankers allegedly marketing insurance products to convert black money into white. Insurance products are profitable, because the bank earns a high first-year commission on the premium. The bank manager could benefit, too: many banks and insurers offer rewards for high sales, such as foreign junkets.
Insurance products are easy to sell. The bank's KYC requirements are sufficient proof for investing any amount in an insurance scheme. A PAN card is not necessary, even though some single-premium policy amounts are as high as Rs 30 lakh. Many banks sell policies that mature after seven years. At that point, nobody can question the source of the money, because income-tax laws do not require banks to keep records for more than seven years.
RBI Governor D. Subbarao
Cobrapost has also alleged that the three banks have been laundering money. Money-laundering means the transfer of money from illegal sources - drugs and arms trafficking, terrorism, extortion and theft - into the financial system through fictitious bank accounts and hawala transactions. Cobrapost alleges that the banks suggested opening accounts in the name of the applicant's spouse, cousin, or friend, which is not money-laundering in the strict sense.
By law, bank employees have the authority to ask a customer for details of transactions that are not consistent with the customer's profile. The onus is on the bank to ensure that the account is not being used to launder money. Insurance companies, too, are required to report cash transactions of over Rs 10 lakh a month to the FIU.
Following Cobrapost's allegations, the RBI and the Insurance Regulatory Development Authority are investigating KYC violations and the background of customers who have put large sums into singlepremium insurance plans. ICICI Bank's life insurance arm has launched a probe, too.
Some in the industry say the FIU is seeking details of policy holders with high-value single-premium policies. The RBI, too, is investigating high-value transactions. "If there is a series of cash transactions valued at Rs 10 lakh or more in a month, they need to be reported under AML," says a public-sector banker on condition of anonymity. AML refers to anti-money laundering rules.
Banks are required to report demand drafts, mail transfers and travellers' cheques worth Rs 50,000 and more to the RBI. A source in the central bank says: "The investigation will also look at the extent of complacency shown by the top management of these banks."
Some bankers argue that it would be unfair to blame the top management of the three private banks that Cobrapost has named - the country's largest in terms of market capitalisation. ICICI and HDFC have nearly 3,000 branches each, and Axis Bank has close to 2,000. The Cobrapost investigation covered some 50 branches. All three banks have comprehensive codes of conduct for employees. For example, ICICI Bank, with a balance sheet of Rs 5 lakh crore, has a detailed manual outlining due diligence for accepting a customer.
A day after Cobrapost published its investigation, ICICI and HDFC banks appointed audit firm Deloitte Touche Tohmatsu to carry out an independent forensic enquiry in addition to their own internal investigations into Cobrapost's allegations. The stock market has reacted, too: the banks' stocks have fallen more than the BSE Sensex.
"The RBI may also put the brakes on new branch licences to some banks," says Kashyap Jhaveri, analyst at Emkay Global Financial Services, in a recent report. An analyst who manages the money of foreign institutional investors says the probe could expand to other banks. A Goldman Sachs report notes: "These developments, if proven true, could potentially lead to slower growth across private banks' deposits and business."
The RBI's deadline for a scrutiny of the head office and branches of the three private banks is March 31. The central bank is also studying whether the banks' gold coins and wealth management products could be potential ways to stash black money. RBI Deputy Governor K.C. Chakrabarty has downplayed the expose, saying: "If we find there is a need to further tighten any guidelines, we will do that."
Some in the industry say that Finance Minister Chidambaram's estimate that 46,800 people have taxable income of over Rs 1 crore is baffling, considering the growth of banks' wealth management services and the portfolio management services of mutual funds and brokerages.
In addition to being the government's debt manager, the RBI manages the country's monetary policy, and supervise and regulate banks. "There is a strong case of hiving off the banking supervision from RBI," suggests a banker.
The number of bank branches in the country has grown to 80,000. The RBI has some 20,000 employees, of which one-third are maintenance and technical staff. Some bankers question, however, whether adding layers of people will improve the situation.
Former RBI governor Bimal Jalan says: "We should learn from the current experience and see how we can improve our ethical governance system in implementing the banking guidelines."
There is also the issue of black money - estimated at Rs 10-15 lakh crore - being generated in the first place. It is common knowledge that much of it is stashed in other countries. The Cobrapost sting has highlighted that banks, which are highly regulated, seem to be doing little to bring tax evaders to book at home. It is anyone's guess what goes on in more loosely regulated financial intermediaries such as co-operative banks, NBFCs and credit societies.
By law, bank employees have the authority to ask a customer for details of transactions that are not consistent with the customer's profile. The onus is on the bank to ensure that the account is not being used to launder money. Insurance companies, too, are required to report cash transactions of over Rs 10 lakh a month to the FIU.
Following Cobrapost's allegations, the RBI and the Insurance Regulatory Development Authority are investigating KYC violations and the background of customers who have put large sums into singlepremium insurance plans. ICICI Bank's life insurance arm has launched a probe, too.
Some in the industry say the FIU is seeking details of policy holders with high-value single-premium policies. The RBI, too, is investigating high-value transactions. "If there is a series of cash transactions valued at Rs 10 lakh or more in a month, they need to be reported under AML," says a public-sector banker on condition of anonymity. AML refers to anti-money laundering rules.
Banks are required to report demand drafts, mail transfers and travellers' cheques worth Rs 50,000 and more to the RBI. A source in the central bank says: "The investigation will also look at the extent of complacency shown by the top management of these banks."
Some bankers argue that it would be unfair to blame the top management of the three private banks that Cobrapost has named - the country's largest in terms of market capitalisation. ICICI and HDFC have nearly 3,000 branches each, and Axis Bank has close to 2,000. The Cobrapost investigation covered some 50 branches. All three banks have comprehensive codes of conduct for employees. For example, ICICI Bank, with a balance sheet of Rs 5 lakh crore, has a detailed manual outlining due diligence for accepting a customer.
A day after Cobrapost published its investigation, ICICI and HDFC banks appointed audit firm Deloitte Touche Tohmatsu to carry out an independent forensic enquiry in addition to their own internal investigations into Cobrapost's allegations. The stock market has reacted, too: the banks' stocks have fallen more than the BSE Sensex.
"The RBI may also put the brakes on new branch licences to some banks," says Kashyap Jhaveri, analyst at Emkay Global Financial Services, in a recent report. An analyst who manages the money of foreign institutional investors says the probe could expand to other banks. A Goldman Sachs report notes: "These developments, if proven true, could potentially lead to slower growth across private banks' deposits and business."
The RBI's deadline for a scrutiny of the head office and branches of the three private banks is March 31. The central bank is also studying whether the banks' gold coins and wealth management products could be potential ways to stash black money. RBI Deputy Governor K.C. Chakrabarty has downplayed the expose, saying: "If we find there is a need to further tighten any guidelines, we will do that."
Some in the industry say that Finance Minister Chidambaram's estimate that 46,800 people have taxable income of over Rs 1 crore is baffling, considering the growth of banks' wealth management services and the portfolio management services of mutual funds and brokerages.
In addition to being the government's debt manager, the RBI manages the country's monetary policy, and supervise and regulate banks. "There is a strong case of hiving off the banking supervision from RBI," suggests a banker.
The number of bank branches in the country has grown to 80,000. The RBI has some 20,000 employees, of which one-third are maintenance and technical staff. Some bankers question, however, whether adding layers of people will improve the situation.
Former RBI governor Bimal Jalan says: "We should learn from the current experience and see how we can improve our ethical governance system in implementing the banking guidelines."
There is also the issue of black money - estimated at Rs 10-15 lakh crore - being generated in the first place. It is common knowledge that much of it is stashed in other countries. The Cobrapost sting has highlighted that banks, which are highly regulated, seem to be doing little to bring tax evaders to book at home. It is anyone's guess what goes on in more loosely regulated financial intermediaries such as co-operative banks, NBFCs and credit societies.
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