Thursday, 13 October 2011

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 2^nd 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 12^th 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 21^st 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.

Friday, 30 September 2011

LALU - "MY CRICKET TEAM WAS NOT GETTING FOOD BY WHAT I EARNED,SO I DID THE CHARA GHOTALA"

Lalu's initial chargesheet, filed by the CBI on 27 April 1996, was against case RC 20-A/96, relating to fraudulent withdrawals of Indian Rupee 37 crore from the Chaibasa treasury of the (then) Bihar government,and was based on statutes including Indian Penal Code sections 420 (cheating) and 120(B) (criminal conspiracy), as well as section 13(2) of the Prevention of Corruption Act, 1988.

Even though he had been jailed, he was kept in relative comfort at the Bihar Military Police guest house. After 135 days in judicial custody, Lalu was released on bail on December 12, 1997.
The next year, on 28 October 1998, he was rearrested on a different conspiracy case relating to the fodder scam, at first being kept in the same guest house, but then being moved to Patna's Beur jail when the Supreme Court objected. After being granted bail, he was rearrested yet again in a disproportionate assets case on 5 April 2000.
His wife and then Chief Minister Rabri Devi was also asked to surrender on that date, but then immediately granted bail. This stint in prison lasted 11 days for Lalu, followed by a one-day imprisonment in another fodder scam case on 28 November 2000.

The Fodder Scam was a corruption scandal that involved the alleged embezzlement of about 950 crores from the government treasury of the eastern Indian state of Bihar. The alleged theft spanned many years, was engaged in by many Bihar state government administrative and elected officials across multiple administrations (run by opposing political parties), and involved the fabrication of "vast herds of fictitious livestock" for which fodder, medicines and animal husbandry equipment was supposedly procured. Although the scandal broke in 1996, the theft had been in progress, and increasing in size, for over two decades. Besides its magnitude and the duration for which it was said to have existed, the scam was and continues to be covered in Indian media due to the extensive nexus between tenured bureaucrats, elected politicians and businesspeople that it revealed

August 2011 A Bihar court on Monday fixed Sep 21, 2011 as the date for framing charges against former chief ministers Lalu Prasad and Jagannath Mishra, among the 11 accused in a case related to fraudulent withdrawal of Rs 47 lakh from the treasury to purchase fodder for public distribution.

Thursday, 29 September 2011

The Adarsh Society Scam - Ashok Chavan

The Adarsh Housing Society is a cooperative Society in the city of Mumbai in India It was reserved for the war widows and veterans of the Kargil War

Corruption allegations

The violations of rules at various phases of construction in the Adarsh Society.
The building was constructed at a place where there used to be Khukri park, inaugurated by Field Marshal Cariappa.

Since 2000 the army used to maintain the park but after that some army officers attempted to grab this land.

Questions were raised on the manner in which apartments in the building were allocated to bureaucrats, politicians and army personnel who had nothing to do with Kargil war and the way in which clearances were obtained for the construction of the building of the Adarsh Society. The Adarsh society(about 3800 square meters) high-rise was constructed in the Colaba locality of Mumbai, which is considered a sensitive coastal area by the Indian Defence forces and houses various Indian Defense establishments. The society is also alleged to have violated the Indian environment ministry rules. Activists like Medha Patkar had been trying to uncover the problems since at least 2004.

It had led to resignation of the then Chief Minister, Ashok Chavan.
Several inquiries have been ordered by the army and the Government to probe into the irregularities.Some of the current occupants of the flats in the Adarsh co-operative society building have offered to vacate their flats at the earliest, denying allegations that they were alloted flats because they influenced or helped, in some manner, the construction of the society by violating the rules.

Monday, 26 September 2011

2G SPECTRUM, A.Raja,P.Chidambaram,Sonia Gandhi SCAM

2G spectrum scam
The 2G spectrum scam in India involved the issue of 1232 licenses by the ruling Congress-led UPA alliance of the spectrum to 85 companies including many new telecom companies with little or no experience in the telecom sector at 2G price set in the year 2001.The scam involved allegations regarding CHEAP TELECOM LICENSES (CAG REPORT)

1.The under pricing of the 2G spectrum by the Department of Telecommunications which resulted in a heavy loss to the the funds of a government or the funds of the country,Spectrum scam has cost the government Rs 1.76 lakh crore and
2.The illegal manipulation of the spectrum allocation process to favour select companies
3. Fee for spectrum licenses in 2008 given at 2001 prices
4. Mobile subscriber base had shot up to 350 million in 2008 from 4 million in 2001　
NO PROCEDURES FOLLOWED
1.Rules changed after the game had begun
2.Cut-off date for applications advanced by a week
3.Licenses issued on a first-come-first-served basis
4.No proper auction process followed, no bids invited
5.Raja ignored advice of TRAI, Law Ministry, Finance Ministry
6.TRAI had recommended auctioning of spectrum at market rates
RAJA :BUY LICENCE CHEAP MAKE ME RICH

1.Unitech, Swan Telecom got licenses without any prior telecom experience
2.Swan Telecom given license even though it did not meet eligibility criteria
3.Swan got license for Rs 1537 crore, sold 45% stake to Etisalat for Rs 4200 crore
4.Unitech Wireless got license for Rs 1661 crore, sold 60% stake for Rs 6200 crore
5.All nine companies paid DoT only Rs 10,772 crore for 2G licences

RAJA WAS HELPED BY THE FOLLOWING -:

1.DMK chief M Karunanidhi's daughter and MP Kanimozhi who has been named by the CBI as a co- conspirator with A Raja .Now eating and sleeping in jail
2.Shahid Balwa, the promoter of Swan Telecom, who the CBI believes had a central role in the 2G spectrum scam. He has been accused of colluding with former Telecom Minister A Raja by allegedly channelising kickbacks Raja got from the spectrum sale into the real estate
3.Unitech chief Sanjay Chandra and DB Realty founder Vinod Goenka who have been chargesheeted for cheating and conspiracy
4.Three senior executives of Anil Ambani controlled ADAG, Gautam Doshi, Hari Nair and Surendra Pipara. All these are currently lodged in Tihar Jail
5.Former telecom secretary Sidharth Behura, who allegedly shut counters to physically block other telecom companies, faces the same charges as Raja. And so does Raja's Personal Secretary RK Chandolia

CASE FILLED BY SUBRAMANIAN SWAMY
In November 2008, Subramanian Swamy wrote the first of five letters to PM Manmohan Singh seeking permission to prosecute A.RAJA in regards to the2G spectrum scam. However, Singh took no action, leading Swamy to file a case on his own in the Supreme court of India regarding the matter, which then asked the Central Bureau of Investigation to produce a detailed report on the matter.
Swamy said that Sonia Gandhi's two sisters Anushka and Nadia have received sixty percent of the kickbacks in the 2G spectrum scam, amounting to Rs.18,000 crores each.On 15 April 2011, he filed a 206-page long petition with PM Singh seeking permission to prosecute Gandhi. In the petition, he claimed to have strong evidence of corrupt acts committed by Gandhi as early as 1972; he also raised doubts regarding her acquisition of Indian citizenship. At a lecture on corruption given on 29 May 2011, he again repeated his allegation against Sonia Gandhi, saying she has Rs.1 lakh crore stashed abroad.

NEW DELHI: Former telecom minister A Raja, who has maintained that Prime Minister Manmohan Singh and then finance minister P.Chidambaram were kept in the loop on 2G spectrum allocation, told the trial court on Monday that Chidambaram should be examined as a witness.

Appearing for Raja, senior advocate Shushil Kumar told special CBI judge OP Saini that CBI should have recorded Chidambaram's statement as he was privy to all decisions relating to the 2G spectrum allocation.

At the last hearing, Raja's counsel had told the court that Chidambaram as finance minister had cleared Etisalat buying stake in Swan Telecom and Telenor buying stake in Unitech Wireless, in the presence of the Prime Minister. According to Raja's counsel, Chidambaram told the Prime Minister that the "dilution of shares" by the now accused licensees to attract FDI was not illegal and did not amount to "sale of licence".

A Raja's counsel said P Chidambaram should be asked whether he gave advice on the issue of dilution of shares in the presence of Prime Minister Manmohan Singh.

"Call Chidambaram here (in the court) and ask him whether this meeting took place or not in the presence of the Prime Minister and you (Chidambaram) gave this advice or not. Call him and confront him with the minutes of the meeting," he said. Regarding the alleged loss incurred by the exchequer, he said none less than the PM has said on the floor of Parliament that there is no loss.
CBI in its chargesheet has said that accused Shahid Balwa's Swan Telecom and Sanjay Chandra's Unitech Wireless (Tamil Nadu) off-loaded their shares to Dubai-based Etisalat and Norway-based Telenor, respectively. Raja's counsel submitted that the court should use its power under Section 311 CrPC to summon and examine Chidambaram as a witness. "In the meeting, the then finance minister clarified (the issue of) dilution of shares. Chidambaram is party to it and I am not calling him as an accused. CBI should have recorded his statement earlier," the counsel said.

"Call Mr Chidambaram under Section 311 of CRPC and ask whether this meeting took place," the defence counsel said, adding that CBI's case is based on two pillars that Raja must have auctioned the spectrum and that he showed favour to two companies who, in turn, earned "windfall" profit by diluting their shares. According to Raja's counsel, the assumption was wrong as it was a policy decision approved by the home minister and even the prime minister.

The government leadership refused to respond to submissions made by Raja's counsel in the court. "We will not like to respond to arguments in the court. When a judge takes a decision, we will formulate our response," said Law Minister Salman Khurshid.

Sunday, 18 September 2011

Commonwealth Scam (CWG) a loss of Rs 53000 crores to the country. (was the games hosted for corruption).Thieves were Klamadi,Sheila Dikshit

On April 25, 2011 Kalmadi was arrested by CBI for awarding illegal contracts to a Swiss firm for Timing-Scoring-Result (TSR) system for the 2010 Commonwealth Games, causing a loss of Rs 95 crore to the exchequer (The funds of a government or institution or individual) and after being questioned over alleged irregularities in the conduct of Queen's Baton Relay (QBR) held in London in 2009,

CBI arrested Kalmadi under Sections 120 B and 420 (criminal conspiracy and cheating) of the Indian Penal Code in the Commonwealth Games Time Scoring Equipment scam.

Kalmadi's membership of the Indian National Congress Party was suspended after being arrested and charged with corruption. On April 26, 2011 he was sacked from the post of president of the Indian Olympic Association.

NEW DELHI: The amount spent for streetscaping and beautification of roads for 'aesthetics' before the Commonwealth Games could have been enough to build a new 94 km two-lane highway with paved shoulder between Delhi and Panipat. The three government agencies in the national capital spent Rs 332.45 crore for such works at an exorbitant expenditure of Rs 4.8 crore per km.

According to NHAI (The National Highways Authority of India's performance with respect to the upgrade of highways) officials, per km cost of two-lane highway with paved shoulder is around Rs 3.5 crore. India has experienced how construction or upgradation of a national highway stretch fuels economic activities in the areas adjoining the corridor.

The Public Works Department (PWD), Municipal Corporation of Delhi (MCD), New Delhi Municipal Council (NDMC) and Delhi Development Authority (DDA) and DIMTS were the five agencies which carried out streetscaping (the appearance or view of a street) and road beautification of 16 packages with the PWD alone took up works on 50% of these stretches.

The PWD had engaged private contractors for beautification of roads around Yamuna Sports Complex, CWG Village, IGI Stadium (Ashram to Bhairon Marg), Kishan Ghat, Chhatarsal Stadium, Dr Karni Singh Shooting Range and Africa Avenue. According to the CAG audit report on the Games, the Delhi government decided in 2004 to implement streetscaping and beautification before the Games. But the project remained in a dormant stage till May 2008 when the government started selection of consultants.

The Central auditor's report says while PWD work spanned over 42km, MCD project covered 23km. NDMC, DDA and DIMTS executed the streetscaping of only 7.5km. The audit report said that the projects were consultant driven. In the case of PWD, the work largely went to Satya Prakash and Brothers at Rs 124.7 crore.

The auditor has found that the consultant selection was arbitrary and non-transparent. It observed that six packages were assigned to consultants simply on the basis of financial quotations and negation with two consultants without specifying the technical works done.

The report also points out that the streetscaping works were awarded at per km costs ranging from Rs 3.63 crore to Rs 9.75 crore with an average cost of Rs 5.32 crore. Moreover, the adoption of richer specifications and higher rates resulted in mismanagement and loss of Rs 59.6 crores.

The CAG has observed that the works awarded in arbitrary manner "confirm wasted public funds totaling Rs 101.02 crore".

The estimated cost was Rs 209.14 crore while the value of the tender was Rs 242.01 crore. The department justified the cost at Rs 254.86 crore.

NEW DELHI: The judicial custody of sacked Commonwealth Games Organising Committee Chairman Suresh Kalmadi and his other associates, arrested for their alleged roles in irregular award of the Games-related contracts, was extended today till September 22 by a Delhi court.

Special CBI Judge Talwant Singh extended the judicial custody of Kalmadi and others, including former OC Secretary General Lalit Bhanot, as they appeared before the court after expiry of their custody stint in Tihar Jail.

The court also directed various counsel, appearing for the accused, as well as the prosecution to complete the scrutiny of documents by October 20 so that the trial does not get delayed.

"Complete the scrutiny of documents by October 20 because I do not want to hear excuses like there were Dussehra holidays and all," the judge said.

The court also granted more time to all the accused to respond to CBI's plea seeking separation of trial of Swiss Timing Omega, the firm which was awarded the contract to install the Timing, Scoring and Results (TSR) for the 2010 mega sporting event.

Others whose judicial custody were extended included OC's Director General V K Verma, Director General (Procurement) Surjit Lal, Joint Director General (sports) A S V Prasad, Treasurer M Jayachandran, Hyderabad businessmen A K Reddy, P D Arya and A K Madan, promoters of a Faridabad-based private company.

During the felicitation ceremony that had been arranged to honour the three Indian medalists at the 2008 Summer Olympics, Kalmadi reportedly walked out because he had not been offered a chair next to the Vice-President of India Hamid Ansari. In January 2010, former Indian hockey captain Pargat Singh accused Kalmadi of being part of a 'sports mafia'.

Kalmadi's conduct around the 2010 Commonwealth Games has come under scrutiny, with the Chief Vigilance Commission (India's anti-corruption organisation) asking the Central Bureau of Investigation to probe certain aspects of the games' organization. For this, the opposition demanded Kalmadi's resignation. However, Suresh Kalmadi continues to deny corruption charges.