Thursday, 13 October 2011

Top 10 Scams or loots of INDIA in very easy words

10.                      Harshad Mehta & Ketan Parekh Stock Market Scam

Cash for vote Scam- Now votes can be purchased in Parliament also

The cash for votes scandal is a scandal in which the United Progressive Alliance, the majority-holding parliamentary-party alliance of India led by Sonia Gandhi, allegedly bribed Indian MPs in order to survive a confidence vote on 22 July 2008. The vote in the Lok Sabha arose after the Communist Party of India (Marxist)-led Left Front withdrew support from the government, who wanted to pursue an Indo-US nuclear deal.
The charge sheet said that Amar Singh ( Former Samajwadi Party general secretary) along with Sanjeev Saxena bribed the MPs during the confidence motion.

On 22 July 2008, Amar Singh along with Saxena planned of bribing the MPs, and as per the plan saxena along with a person in yellow shirt delivered Rs 1 crore as an advance of Rs 9 crore as Rs 3 crore (were to be paid) to each MP Argal, Faggan Singh Kulaste and Mahaveer Bhagora.

The Cash for vote scandal is a scandal in which the UPA government gave bribes to Indian MPs in order to survive the confidence vote on 22 July 2008.The UPA government led by Sonia Gandhi wanted to pass Indo-US nuclear deal but the Communist party of India withdrew support from the government.

Three BJP MPs said that the UPA tried to buy their votes, and produced bags full of notes and waved in the parliament during the debate. The CPI (M) leader said that "Practically every member of parliament has been approached with offers of money and inducements." However government denied the allegations as they do every time.

On 2nd of August BJP introduced video recordings as evidence that the three BJP MPs naming Argal, Faggan Singh Kulaste and Mahaveer Bhagora have been given bribes. These tapes were later broadcasted by CNN-IBN on 12th August 2008.
Under section 12 of the Prevention of Corruption Act read with section 120 B (conspiracy) of IPC, Amar Singh was held guilty and sent to Tihar jail. He, however, had to be rushed to the AIIMS from Tihar jail after a bout of vomiting and diarrhea on September 12 evening and later the court granted him interim bail on September 15.

As per report of AIIMS on September 16, he is Stable but requires monitoring. Special Judge Sangita Dhingra Sehgal relied on the medical reports and said that she leaves it to the judgement of the specialists to decide the period for which Amar is to kept under observation.
Delhi court on 21st september  dismissed his regular as well as interim bail pleas, so now  MP Amar Singh would be arrested soon.

Wednesday, 12 October 2011

IPL Scam- Cricket is just left for Scams and getting advertisements for the players

IPL Scam involved 1000s of crore,this time there was not only politicians but also corporate stars, cricket officials.
The income tax department has solid evidence about the involvement of Lalit Modi in money laundering,match fixing and also various news reports say that Sameer runs a betting network across the world on behalf of Lalit Modi.
WSG and IMG, two companies that received BCCI contracts, are both old business partners in Modi's own businesses. Modi Entertainment Networks runs Fashion TV in India, Modi is the who wants that children of India should grow up watching nudity, so that no Indian becomes Rajiv Dixit, Subhas or Bhagat Singh .Because if the youths of the country start inspiring Bhagat Singh or Rajguru, they will kill us.
Mr Lalit Modi was having a very hard time; he had a number of failed ventures before entering into IPL.After the IPL business started to loot the country and the people his lifestyle has changed and now he owns a Private jet, a luxory yacht and large number of Mercedes and BMW cars.

Sunday, 9 October 2011

Harshad Mehta & Ketan Parekh Stock Market Scam

These are two stock-market scams, like identical twins separated by 9 years. In 1992, it was Harshad Mehta, and in 2001, Ketan Parekh.
Mr. Harshad Mehta started his career as an employee of New India Assurance Company but later quit the job to play the stock market. By 1991, Mr. Mehta had become the most recognizable and revered icon of the stock market. Considered a financial genius by many, he was nicknamed the Big Bull who single-handedly decided the course the markets would ply.
He played broker between banks in a ready forward deal, the seller bank of securities gave the buyer bank of securities a bank receipt.Hashad managed to find two such banks and produced fake bank receipts
Once he managed to produce fake bank receipts, they were passed on to the other banks and in turn the banks gave him money assuming that they were lending against government securities, where as the case was different here. He did this on a long run and maintained a cash balance for himself, which he used in driving up the stock market prices. When ever he needed money to return back to the banks, he sold his shares.
Mr. Mehta’s fall from grace was as fast as his meteoric rise. Investigations revealed that his “unending resources” were actually siphoned off from the banking system. According to investigators, he had devised an ingenious way of using bank receipts to feed the stock market.
He was arrested and banished from the stock market with investigators holding him responsible for causing a loss of more than Rs 4,000Cr to various entities.
Harshad Mehta died in 2002, without paying back money to the banks which he owed.

Ketan Parekh is a charted accountant and a down to earth man with an extremely sharp mind. He came into prominence since two year, and has since built a solid reputation and substantial wealth. He made pretty good predictions about how the stock markets fluctuated. His killings in Zee Telefilms, Pentafour Software and Ranbaxy were legendary.
Ketan Parekh was arrested, on March 30, 2001, by the Central Bureau of Investigation. Soon, reports abounded as to how Ketan Parekh had single handedly caused one of the biggest scams in the history of Indian financial markets. He was charged with defrauding Bank of India (BoI) of about $30 million among other charges.Ketan’s arrest was followed by yet another panic run on the bourses and the Sensex fell by 147 points. By this time, the scam had become the ‘talk of the nation,’ with intensive media coverage and unprecedented public outcry.

Satyam Scam-"When the care taker of our country can make a loot then why not SATYAM"

Satyam is the fourth largest Indian IT company and it has been known as the one of the best Indian IT companies to work with and it has risen past several companies to bag several projects. Its revenues were in the range of 10,000 crores a year and have a roster of about 650 clients all over the world that used to offshore their work to Satyam.
10000 crores will mean about 2 billion dollars or rather more based on the valuation of the rupee.
This company’s founder is Mr. Ramalinga Raju who in a letter to the Board of Directors said that he has for the past seven years overstated the accounts and that the total profit margin of the company is only 3% even though he has been fraudulently showing a profit margin of about 25%.
That means he was showing a cash at hand I mean in the bank accounts to be 5000 crores about a billion dollars whereas the cash is only 640 crores or even less in the accounts. That letter caused a stir and the jobs of about 55000 employees are at stake as well as the whole future of the company is at stake.
Satyam vs. other IT companies
 Other IT companies especially those operating from Indian IT shores such as Wipro, Infosys and TCS have more revenues than Satyam but the fact is that each of them and even some companies smaller than Satyam have a profit margin of about 25% or so.
Satyam is saying that the profit margin is only 3% which is very hard to believe and hence the big question is where are the money and the reason for overstating the profits and the cash in hand.
The problem is why Satyam has such low profit margins which means that there are more employees than there is work and secondly if indeed the revenue is that much then why the profit margin is less and if it is same as other companies the where did the money go ?

Work of Auditors In ?
 The auditors internal as well as external should have known this. Internal auditors can be hand in glove with the management but what happened to the external auditors as to why they did not suspect something wrong.
In this the case the external auditors were PEC or Price Water House Coopers and that means PwC knew about the fraud all along or they did not do proper auditing.
In fact they were paid much more than what other Indian IT companies paid their auditors.

Saturday, 1 October 2011

Rajiv Ganghi kept money in Swiss Bank -with proof

The Bofors scandal was a major corruption scandal India in the 1980s; the then Prime Minister Rajiv Gandhi and several others were accused of receiving kickbacks from Bofors AB (The name Bofors has been associated with the iron industry for more than 350 years.) for winning a bid to supply India's155 mm field howitzer.
The scale of the corruption was far worse than any that India had seen before, and directly led to the defeat of Gandhi's ruling Indian National Congress party in the November 1989 general elections. It has been speculated that the scale of the scandal was to the tune of Rs. 400 million (almost US$9 Million).
The case came to light during Vishwanath Pratap Singh's tenure as defense minister, and was revealed through investigative journalism by Chitra Subramaniam and N. Ram of the newspapers the Indian Express and The Hindu.

The name of the middleman associated with the scandal was Ottavio Quattrocchi, an Italian businessman who represented the petrochemicals firm Snamprogetti. Quattrocchi was reportedly close to the family of Prime Minister Rajiv Gandhi and emerged as a powerful broker in the 1980s between big businesses and the Indian government. While the case was being investigated, Rajiv Gandhi was assassinated on May 21, 1991 for an unrelated cause.
 In 1997, the Swiss banks released some 500 documents after years of legal battle and the Central Bureau of Investigation (CBI) filed a case against Quattrocchi, Win Chadha, also naming Rajiv Gandhi, the defense secretary S. K. Bhatnagar and a number of others. In the meantime, Win Chadha also died.
The photo from a Swiss Magazine Schweizer Illustriertein (November 1991) – it shows the top holders of Swiss bank accounts at the time.
Rajiv Gandhi appears in the august company of other dictators like Saddam Hussein, Suharto of Indonesia, etc. The text below Rajiv’s photo reads: Rajiv Gandhi, Indian, Holds 2.5 billion Swiss Francs (eq. to 13,200 Crores in 1991).

What was and is Bofors Scam

The photo from a Swiss Magazine Schweizer Illustriertein (November 1991) – it shows the top holders of Swiss bank accounts at the time.

After notes now fake stamp papers - Telgi Scam

Stamp paper scam
The stamp paper scam has the Mumbai police running for cover.
A native of Belgaum in Karnataka, Abdul Karim Telgi, is suspected to be the kingpin of the racket, which involved printing and circulating duplicate stamps and stamp papers.
Senior policemen and politicians are suspected to have helped him expand his multi-crore business.
Already many policemen have been held in connection with the scam. But a lot more questions need to be answered
The kingpin of multi-crore fake stamps and stamp paper racket Abdul Karim Telgi was Tuesday convicted by a special court for his role in a 1995 case of selling fake stamp papers worth Rs 17 lakh.
This is the first conviction of Telgi who is lodged in Yerwada prison in Pune. He was not present when the judgment was delivered but appeared on television through video conferencing. Special Judge U D Salvi delivered the judgment in the jam-packed courtroom.
Telgi's associates Sanjay Gaikwad and Ram Ratan Soni were also convicted.     
Telgi, Gaikward and Soni were awarded rigorous imprisonment for ten years and Rs 50,000 fine on the charge of conspiracy. Prosecutor Pradeep Gharad sought maximum life punishment for the accused but all of them pleaded clemency on humanitarian grounds. Telgi through video conferencing urged the court to show lineancy as he was suffering from HIV/AIDS and his wife was admitted to the hospital.