Wednesday, August 29, 2012

Fashion student, accomplice arrested for shoplifting Wannabe designer would steal cosmetics and sell them to Andheri trader

Fashion student, accomplice arrested for shoplifting
Wannabe designer would steal cosmetics and sell them to Andheri trader

Uwait Ali Sayed does not have anything to complain in life, considering the aspiring fashion designer is pursuing a course of his interest and has a family affluent enough to support his interests. But even his family members were in for a shock on Sunday, when he along with his accomplice was arrested by the Bandra police allegedly for stealing cosmetics and other health products from a medical store in Bandra. Sayed’s aim: To sell the stolen goods for some extra pocket money and support his fun and flair.
“We have arrested two youth, both in their twenties, who would visit the medical store and pick up expensive cosmetics and health products. They have been booked under sections 380 and 34 of the IPC,”said an officer from the Bandra police. While Uwait has been remanded in police custody till August 30, his accomplice Samad Siddiqui (20), who has faced earlier arrests, has been ordered judicial custody. Now, the police are looking for the Andheri-based dealer who would buy the stolen goods from the two youth.
It was after the Bandra police received a complaint from the Asian Chemist store on August 8, regarding two boys spotted on their CCTV cameras who were making away with their products without having paid for them. The store, which encourages self-service, seems to have been the ideal place for the youth help themselves to the products on display and disappear without making any payment.
“While one of them would engage the staff pretending to shop, the other would pick products without our knowledge. We would have never found out, but one day, a customer came early morning to buy a product which I remembered having put on a shelf the night before. But, not seeing it there the next morning, we decided to check the CCTV footage and caught their theft,” said a staff from the medical store.
According to the police, the youth stole products in all worth about Rs95,079. However, the police suspect their shoplifting was not limited to just one store and are now probing if two had visited other stores to make a quick buck.

Good Samaritan chases down chain-snatchers Gets stabbed, but pins one thief to the ground while the other flees

Good Samaritan chases down chain-snatchers
Gets stabbed, but pins one thief to the ground while the other flees

Trying to help an elderly woman landed a 24-year-old man in hospital.
After hearing cries of the woman for help, Hitesh Sawant ran after the two robbers who had threatened her at knifepoint and then snatched her gold chain. He chased and caught them but one of them stabbed him in his left shoulder. One of the robbers fled the spot but the other he caught was handed over to the Malad police.
The arrested accused has been identified as Wilfred Joseph and the accused on the run as Rizwan.
According to the police, the incident took place on Sunday at around 5.30pm when 42-year-od Sumitra Bablya Kumbhar was heading to Malad (East) through the Chincholi Phatak over bridge with her daughter-in-law, Archana.
Senior inspector Avinash Jadhav of the Malad police said, “The thieves threatened Kumbhar at knifepoint and asked her to hand over her chain. When she resisted, they slapped her and snatched it. They tried to flee but she raised an alarm.”
Sawant chased and caught up to the robbers but was stabbed in his left shoulder. He still managed to catch one of them. People passing by then took him to Siddharth Hospital.
The accused was handed over to the Malad police. In her statement, Kumbhar added that the robbers started running away when they saw the public approaching.

Saturday, August 25, 2012

dont loose hope

HI, all of the investors  ,dont loose hope. it is our primary responcibilty to file case against the co.as well as investgating agency like E.D &E.O.W for which the money of the citygroup co.so now we have to file a case at supremecourt to give direction to E.D.for settlement of investors amount as ,we r the first victims by the co.by investors welfare association. as we have done the same in A.P.& got a favorable order from mumbai HICOURT, now we r an idea to file case against E.D. torelese the amt of our claim which was orderd by MUMBAI HI COURT, but the thing is very EXPENSIVE,so t was easy if some group of people extend their support to file case at SUPREMECOURT.so pl think it once ,without filing a case at S.C.we r not in a position to get our hard erned money , if any body interested to jon with us pl contact.our association.authorised person.

Wednesday, August 15, 2012

Bomb suit maker held

Bomb suit maker held

Officials of the Economic Offences Wing (EOW) on Monday arrested Bimal Agarwal, director of Techno Trade Impex that manufactured bomb suits for the police, immediately after the sessions court rejected his anticipatory bail application.
Rajwardhan Sinha, additional commissioner of police (EOW), said: “We have arrested Agarwal. Further investigations are on.”
In January 2009, the state police floated tenders for bomb suits post 26/11 terror attacks. Techno Trade Impex won the bid and was given an order for 80 bomb suits for which the state paid around Rs6crore.
The suits, which were supplied only in 2010, were rejected by the government as they were not in accordance with the quality standards.
Agarwal moved the Bombay high court in March 2010, challenging the government's decision. Former principal secretary (home) PK Jain, in an affidavit filed before the HC, claimed that the firm had acquired 36 suits from South Africa and the rest from China. After the Anti-Corruption Bureau probed into the matter and submitted its report to the home department, a case was registered against the firm.
In May, the EOW booked Agarwal for cheating and forgery for supplying inferior quality bomb suits. He then applied for anticipatory bail claiming he had being implicated in the case on the instructions of an IPS officer.

Recoveries see meteoric rise

Recoveries see meteoric rise

The economy is slow, but our government servants seem to be still making huge sums of money; obviously through improper channels.
Statistics provided by the Maharashtra Anti-Corruption Bureau (ACB) has revealed that the money involved in the disproportionate assets cases has jumped by more than Rs121 crore compared to the last year. And, almost all the culprits are government servants.
In 2011, 10 cases of disproportionate assets cases involving Rs1.97 crore were registered with the ACB. But until June this year, 16 cases were registered with the ACB involving more than Rs123crore. Suspended deputy collector Nitesh Thakur, who was arrested in March, alone had disproportionate assets worth over Rs118 crore.
Another shocking revelation is that in the last two years, most cases were registered against government servants from the municipal corporation, public health department and police department.
While last year, disproportionate assets cases were also registered against officials from zilla parishad, sales tax, education departments and panchayat samiti, this year, officials from the revenue, agriculture, forest, irrigation, public works departments and Maharashtra State Electricity Distribution Company were also found guilty.
“During investigation, we look into the properties owned by government officials, including the benami properties. These properties could be movable or immovable, such as flats, land, vehicles and jewellery, and the cost of such properties goes to crores of rupees,” said an ACB officer.
“In such cases, we generally do not arrest the person, but only conduct raids. If the person is not able to provide details of his assets and sources of income then after the investigation we summon him directly to court."
This year, the maximum cases were registered against the municipal corporation officials — 4. But the maximum ill-gotten money was recovered from the revenue department — more than Rs118 crore from three cases.
Last year, the maximum money recovered was from two cases registered against civic officials involving more than Rs63 lakh.

Kakade’s 4th extension plea raises questions

Kakade’s 4th extension plea raises questions


Questions have been raised over the way the Pune-based Sanjay Kakade Group — which bagged a prime 1.97 acre government plot worth Rs30 crore in return for building a few government offices — has repeatedly sought, and received, extensions. This is despite the fact that eight years after bagging the contract, only 60% of the work has been completed.
The plot is the spot where revolutionary Umaji Naik Khomane was arrested and subsequently hanged by British government in February 1832.
As per the agreement, the Kakade Group was to develop an Umaji Naik memorial at the spot before commencing other work. The memorial seems to have been built in a hurry and has attracted criticism. “The memorial is more of an insult than a tribute to the great revolutionary who laid his life down for the state,” said social activist Hanumanth Sathe, adding that the developer’s sloppy work should be probed.
In 2004, the Kakade Group entered into a contract to build and transfer to the government 7,078 sq mt of built-up area on a portion of a government plot at Khadakmal in Shukrawarpeth, Pune. This would be done at no cost to the government, which planned to have administrative offices in that area. In return, the agreement permitted the group to develop the remaining land and sell it.
By conservative estimates, the cost of constructing the offices would be just Rs3 crore. Thus, the developer would rake in at least Rs30 crore by selling the 8,000 sq mt of space it was permitted to develop for profit. Despite this huge profit margin, Kakade failed to complete the project on time.
After assuring the government that the project would be completed within 18 months from its inception in 2004, the Kakade Group breached the deadline not once, but thrice — in December 2009, June 2011 and June 2012. “Now, for the fourth time, Kakade has asked for an extension again,” a senior Pune-based PWD official said. “Due to this, we are facing problems accommodating our expanding offices. Moreover, the developer has paid only Rs39 lakh as penalty against the Rs2 crore bill raised against it for extending the deadlines,” the official added.
“Instead of blacklisting Kakade, the government should have terminated the contract permanently and given it to someone else,” said a prominent Pune-based developer.
Information sought under RTI revealed more irregularities: that the government violated rules to approve Kakade Group’s architectural plan.
According to a government notification issued on July 30, 2008, any government work on a plot larger than 5,000 sq mt must be approved by the state government’s chief architect only. However, the government delegated the job to the deputy chief architect based in Pune instead. The chief architect even complained about this violation of rules, but the plea fell on deaf ears, revealed the RTI.
Repeated calls and SMSs to Sanjay Kakade, seeking his response on the issue, went unanswered.

Monday, August 13, 2012

SpeakAsia and AdMatrix: The gang of MLM operators

Senior officials from investigating agencies have been saying that there are sets of people who move from one place to another floating a new MLM or Ponzi scheme

Moneylife Digital Team


SpeakAsia, the now defunct online survey company, which is embroiled in a multi-crore scam and AdMatrix, another multi-level marketing (MLM) operator not only share the same business module but it is alleged that the people behind both the companies are the same. And they are operating together since 2003.

According to information procured from the Registrar of Companies (RoC), Mumbai, people like Gerard J Wessil, Elia De Prisco, Monique Francoise, Ram Niwas Pal, Manoj Kumar (the absconding CEO of SpeakAsia), Rajah P Jain, Renu Sharma, Rajiv Mehrotra are working together from 2003. Their legal advisors are Ahmed Adbi (currently he is lawyer of All India SpeakAsia Panellists’ Association—AIPSA) and Kedar Goel.

These people are shown as promoter/directors of Mango Business (India) Pvt Ltd (CIN U 29301 MH 2003 PTC 143206), a Mumbai-based company that operate three sites, www.mangouniverse.com, www.mangocommunity.com and www.mangoconsumer.com. While Gerard J Wessil is shown as president of this company, Elia De Prisco is responsible for training; Monique Francoise was the CEO of the company and looks after marketing. Compensation management was handled by Ram Niwas Pal, while Manoj Kumar was looking after technology and sales. Similarly, Rajah P Jain was responsible for corporate strategy, Renu Sharma for CRM and data centre and Rajiv Mehrotra for purchase, logistics and finance at Mango Business.

Manoj Kumar Sharma, the absconding CEO of SpeakAsia is also related with Tulsient Information Systems Pvt Ltd. Rajiv Mehrotra, Renu Manoj Kumar Sharma and Rajah Jain are also director/promoter of Tulsient Information Systems. Jain is also associated with Tulsiyat Tek Pvt Ltd, which allegedly used to transfer funds collected by SpeakAsia agents to Singapore based Haren Ventures Pte Ltd (HVP).

While SpeakAsia did not have an Indian registration, Tulsient Information and Tulsiyat Tek are registered in India. The registration was done in order to fulfil the ‘know your customer’ (KYC) requirement for opening bank accounts, which later were used to siphon off money.

Sanjeev Dandona, who was earlier arrested by the Economic Offence Wing (EOW), is alleged to be advising both HVP and Tulsiyat Tek and helping in the remittance. But more about him later.

Elia De Prisco is related with Mango Business (India) Pvt Ltd and Seven Rings Education Pvt Ltd, while Antonio Grasso and Dashrath Bendure are named as directors of Seven Rings and Mango Business, respectively. 

AdMatrix, a Holland-based business entity, used to offer extraordinary returns just to watch advertisements. Its “Watch-and-Earn” scheme was launched in India in October 2010. To start with, a person had to pay Rs15,000 for registration with AdMatrix, in order to get access to the AdStation, to view advertisements for a period of one year. If one gets Rs1,000 a week to watch the ads, it would take about four months to recover the registration amount. The company also offered an extra Rs1,000 for every two new people (or a binary pair) introduced to the scheme.

According to some posts on the internet, AdMatrix may be related to SpeakAsia. A writer on “www.behindmlm.com” has quoted a newspaper report that says, “The money trail of Rs600 crore that was allegedly transferred by the founders of the Speak Asia multi-level marketing scheme, to a Singapore bank in the past 12 months, has at least one account in the name of an alleged Holland-based advertisement Ponzi scheme operator; which indicates that the operation may have been on a global scale.”  

Speak Asia duped around 23 lakh investors to the tune of Rs2,000 crore. It promised a weekly income, merely on filling online survey forms. Initially the company paid the money to its panellists but stopped all the payments since May 2011. After complaints were lodged, Speak Asia came under the radar of the EOW.

Earlier, the investigating agency had arrested Speak Asia’s chief operating officer (COO), Tarak Bajpai, along with few other employees. Currently Manoj Kumar, its CEO and Harendar Kaur, a Singaporean of Indian origin and company’s chairperson are absconding.

Earlier, the Reserve Bank of India (RBI) was directed by the Bombay High Court to provide a hearing to SpeakAsia. However, the MLM company first requested to postpone the appointment with the RBI and later sent its legal officers for the meeting, instead of its top officials. Off course, many of them were absconding or arrested by the police at that time. 

SpeakAsia Online Pte Ltd has filed a case (WPL/1695/2012) against the RBI in the high court under the Banking Regulation Act. The case is still in pre-admission stage and its next hearing is scheduled for 3 August 2012.

Coming back to Dandona, earlier in 2002 he was charge-sheeted by the CBI (Central Bureau of Investigation) along with seven other people, including three officials from the Transport Department of the Delhi Government for allegedly issuing forged permits for new auto-rickshaws. In May 2010, justice Vipin Gandhi of the Delhi High Court dismissed Dandona’s petition saying, “Prima facie, his involvement appears to be deep-rooted. It cannot be said that on the basis of the allegations contained in the charge-sheet the petitioner WP (Crl.) 586/2010 Page 15 of 16 may not have been involved in the criminal acts attributed to him. Consequently, I see no merit in this petition and dismiss the same.”

Speak Asia raised Rs. 2,400 crore; sent Rs. 900 crore to Singapore

Speak Asia raised Rs. 2,400 crore; sent Rs. 900 crore to Singapore
A multi-agency probe says the firm breached India’s forex laws and evaded income tax
 
A multi-agency probe of marketing company Speak Asia Online, under investigation for suspected fraud, has found it breached India’s foreign exchange laws and evaded payment of income tax.
The Enforcement Directorate (ED), which investigates money laundering and violations of foreign exchange regulations, and income tax (I-T) authorities have found that the multi-level marketing firm, which has raised Rs. 2,400 crore from consumers in India, had remitted money to Singapore, ED and I-T officials said.
According to an ED official directly involved in the investigation, the agency is probing at least 100 overseas bank accounts of the promoters and close associates of the Singapore-based firm to unravel the money trail.
“The investigation is at an advanced stage and we expect to file a show-cause notice by the end of December,” said the official, who didn’t want to be named pending the completion of the investigation.
Speak Asia conducts online surveys on a variety of products and services, and has around two million Indian panellists, or members, who pay money to join the firm’s network and earn reward points for referring its offerings to friends and peers.
Apart from ED and the I-T department, the firm is being investigated by the economic offences wing (EOW) of the Mumbai Police and the ministry of corporate affairs (MCA) for several violations, including complaints of non-payment to its members.

The I-T department has already issued show-cause notices to the firm and its associates, asking them to explain why they should not be penalized for not filing tax returns. It has also frozen Rs. 134 crore in the bank account of Speak Asia.
“The adjudication proceeding in the case is on and Speak Asia has now agreed to file income-tax returns with the department. We are expecting the tax returns by the end of this month,” an I-T official said.
Manoj Kumar, chief executive officer (India) of Speak Asia, did not respond to an email sent to him on Thursday. He also could not be reached on his mobile phone.
“We have sought information from foreign countries on these accounts. The company has raised Rs. 2,400 crore in India and remitted about Rs. 900 crore to Singapore without requisite approvals,” the ED official said.
Multi-level marketers typically run a network where sellers of the company’s product or service, in turn, hire more sellers. These sellers, or agents, earn money not only from the products and services they sell, but also from the products and services sold by the people they hire.
Some multi-level marketers require sellers to pay a substantial amount upfront to enter the network—they get some products in return—and effectively function as Ponzi schemes, with individuals in the network earning money as long as the network keeps growing.
The people at the apex of the network, the promoters of the firm, earn the most. Such multi-level marketing firms are also called direct selling, or referral, companies.
ED began its investigation in August after India’s central bank referred alleged violations of foreign exchange regulations to the agency.
The I-T department, which is investigating the company for its tax liabilities, has also found that Speak Asia has been remitting money to Singapore. “Between January and June, around Rs. 600 crore had been remitted,” said the I-T official privy to the development.
The Serious Fraud Investigation Office (SFIO), the investigative agency of MCA, has, meanwhile, sought another month to submit its report on Speak Asia, a senior official at the ministry said on condition of anonymity. “MCA is expecting the SFIO report by December,” he added.
Rajvardhan Sinha, additional commissioner of police at EOW in Mumbai, said the department is still investigating Speak Asia and declined to share details of any findings.
In August, the Bombay high court directed EOW to file a report on Speak Asia and other multi-level marketing firms, which were being investigated by the police, and detail preventive steps it proposes to put in place to deal with such marketers.
“We have submitted a report on the company to the Bombay high court,” Sinha said. Mumbai Police is organizing a two-day seminar on law enforcement next week that will also discuss how to investigate the so-called Ponzi schemes, he added.
A Ponzi scheme is a racket that pays returns to investors from their own money, or the money paid by subsequent investors, instead of any actual profit. The name comes from Charles Ponzi, who first used the technique in 1920.
In July, Mumbai Police’s EOW arrested Tarak Bajpai, chief operating officer of Speak Asia, and four vendors of the company from Mumbai and Indore as part of its investigation. EOW has now initiated criminal proceedings against the firm.
According to a June statement by Speak Asia, 1.2 million of its customers in India have received upwards of $52 million (around Rs. 260 crore today) since last year through bank transfers via Reserve Bank of India-authorized foreign exchange channels. This income has been generated by filling up surveys, giving online opinions on advertisements watched, and income accrued from referring other panellists.
Since its entry into India, Speak Asia has invested at least $9 million in various marketing, training and business development programmes.
 

Speak Asia’s members range from 132 in Lakshadweep to 130,000 in Mumbai, with the maximum members in Madhya Pradesh

Speak Asia biggest multi-level marketing fraud, says EOW
Speak Asia’s members range from 132 in Lakshadweep to 130,000 in Mumbai, with the maximum members in Madhya Pradesh
 
The economic offences wing (EOW) of the Mumbai police on Tuesday said Speak Asia Online was a Rs2,300-2,400 crore fraud and that the notional value of the reward points offered by the company is Rs30,000 crore.
Speak Asia, which conducts online surveys on a variety of products and services, has around two million Indian panellists, or members, who pay money to join the firm’s network and earn reward points for referring its offerings to friends and peers.
“Total money collected by Speak Asia in a span of 18 months (February 2010-July 2011) is more than Rs2,300 crore and the total payouts assured by the company to investors is more than Rs30,000 crore,” said Rajvardhan Sinha, additional commissioner of police. Sinha heads the Mumbai EOW.
SpeakAsia COO Tarak Vajpayee. Photo: HT
SpeakAsia COO Tarak Vajpayee. Photo: HT
Speak Asia, a multi-level marketing firm, is being investigated by multiple agencies such as the Enforcement Directorate (ED), the income-tax department and the Serious Frauds Investigation Office (SFIO), besides EOW, for offences including money laundering, violation of foreign exchange law, tax evasion and not making payments to investors.
The company’s spokesman couldn’t be reached for comment.
On 12 November, Mint reported that the ED is expected to file a show-cause notice to Speak Asia for raising Rs2,400 in India and remitting Rs900 crore to Singapore.
At a seminar in Mumbai, Sinha said, “Till now, Speak Asia is the biggest multi-level marketing fraud which is being investigated by EOW.” He said Ponzi schemes are proliferating, especially in cases where the multi-level marketing model is being used without selling a product and that companies who do this have no financial integrity.
In June, Speak Asia said it uses the collective bargaining power of 1.9 million online consumers to “get unprecedented price advantages” in purchasing goods and services.
When the company started facing problems on many fronts, it stopped making payments to its members, saying its accounts have been frozen. It also gave an exit option to members.
“Until we have a centralized agency like Sebi (Securities and Exchange Board of India) or the Reserve Bank (of India) to look into multi-level marketing companies, this problem cannot be solved,” Sinha said.
There is no provision for registration of online companies and this explains why they can’t be regulated.
In July, the ministry of corporate affairs (MCA) ordered a probe into Speak Asia’s activities under a section of the Companies Act, 1956, that deals with firms not registered in India.
“The SFIO report should be out in December. The ministry (MCA) feels the culprits will be nailed after that,” said a senior MCA official, who did not want to be identified.
EOW’s Sinha said multi-level marketing schemes investigated by the agency in the past include Pinnacle Education and Opportunity Ltd, Gurudev Travel Connection, City Limousine and Kanakdhara Gold.
According to EOW, Speak Asia’s members range from 132 in Lakshadweep to 130,000 in Mumbai, with the maximum members in Madhya Pradesh.
 

Multi-level marketing firms con many to benefit a few: Study

Warning people against joining multi-level product marketing schemes, a government study said that such programmes are primarily meant to con individuals to the benefit of a few sitting at the top of pyramid. The study conducted by the Ministry of Corporate Affairs concluded that "such schemes are inherently money circulation schemes and sale of products is only a camouflage...(and) voilative of the Prize Chits and Money Circulation Schemes (Banning Act) 1978."

Several multinational and Indian firms are operating multi-level marketing schemes in the country and require their members to bring in more members and also sell products.
According to the study, the products by multi-level marketing companies are "over-priced" to pay huge commissions to people sitting at the top of pyramid and earn exorbitant profits for the company.
"Such schemes enrich the company and the top of the pyramid participants at the cost of 90 per cent of the participants who are at the bottom two levels," it said.
The study added that in the pyramid or multi-level marketing schemes 'product' "is only a way to disguise the real intention" and such schemes are primarily "a variant of the earlier money circulation schemes without any products.
Such pyramid schemes of money circulation were common in 1960s to 80s but as the public, media and law makers became aware of the con game, the non-product pyramid schemes were abandoned by the conman. Pyramid schemes and chit funds are banned in India.
Most recently, multi-level marketing company Speak Asia Online and chit fund company Gold Quest International have come under the radar of investigation agencies.

SFIO fights on High-profile probes into alleged scams have brought the agency back into the news

High-profile probes such as those into alleged scams at Reebok and cartelisation among major cement firms have brought the agency back into the news.

It is almost six in the evening. At this time, when most office employees start calling it a day, the Serious Fraud Investigation Office (SFIO), the government’s corporate investigative wing, is pulsating with energy. At the office, located at an isolated corner of the second floor of Paryavaran Bhavan in New Delhi’s CGO complex, visitors are waiting, files are being moved from one room to another and multiple meetings are underway.

Known best for its probe into the Satyam scam in 2009-10, SFIO is again making headlines, thanks to various high-profile cases of alleged frauds being referred to it in the last few months. The latest include the alleged Rs 870-crore fraud in Adidas AG’s Indian subsidiary, Reebok India. Also, earlier in July, the Ministry of Corporate Affairs had ordered SFIO to scrutinise nine companies of the Radia group, including Vaishnavi Corporate Communications and Neucom Consulting , after the Registrar of Companies found inconsistencies in their financial accounts, an SFIO official said.


KEY CASES HANDLED BY SFIO

  • Daewoo Motors: Was referred in 2003 for alleged financial mismanagement involving Rs 1,000 crore
     

  • Mardia Chemicals: Probed in 2005 for diversion and siphoning of funds.
     

  • DSQ Software: The first company referred to SFIO in 2003 for its role in the securities scam
     

  • Usha India: Referred in 2006 for siphoning funds, fudging accounts and diverting money via 250 front companies
     

  • Classic Shares, Goldfish Computer, Panther Group, Nakshatra Software: Ketan Parekh group of companies involved in the stock market scam
     

  • Morepen Laboratories: New Delhi-based antibiotics maker was probed in 2006 for alleged mismanagement and financial irregularities
     

  • Satyam Computer: Referred in 2009, for accounting fraud
     

  • JVG group companies: Includes 13 companies like JVG Hotels Ltd, JVG Techno India, JVG Holdings, and JVG Publications. Since 2005, accused of defrauding thousands of investors of Rs 1,000 crore
     

  • Sesa Goa: SFIO recommended prosecution against mines major Sesa Goa on nine grounds, including over- and under-invoicing of export and import, respectively, of Rs 1,000 crore

“It (SFIO) is a very competent agency. In the Satyam case, it showcased one of the best probes ever conducted in the world. We need to strengthen it and give it more powers so that it can carry out its job even better. But that is a gradual process,” says Minister of Corporate Affairs Veerappa Moily. His ministry, which oversees the investigative agency, recently indicated it might refer the OnMobile case to SFIO. Various liquidating and multi-level marketing companies such as Singapore-based SpeakAsiaOnline are currently under SFIO’s scanner.

However, some feel the agency lacks teeth and resources to intimidate companies. A look at how the agency functions and what it needs to match its foreign counterparts:

Inception
SFIO, currently a non-statutory body, was established in 2003 on the basis of recommendations of the Naresh Chandra committee on corporate governance. This followed various stock market scams, irregularities in non-financial banking companies and vanishing plantation companies. The idea behind its inception was to tackle white-collar crimes, especially those committed on a large scale or involving great complexity.

“While corporate culture is growing in the country, it is important to have an investigative agency that can not only keeps a check, but also deals with complex frauds that have inter-departmental and multi-disciplinary ramifications,” says Pavan Kumar Vijay, managing director, Corporate Professionals, a capital markets consultancy firm. Pradeep S Mehta, secretary-general of CUTS International, agrees. “The increasing economic activity led to a rise in economic crimes in the country. Therefore, you require a beefed-up, well-equipped SFIO,” he says.

However, SFIO’s role is not limited to policing companies. Besides corporate governance and financial frauds, SFIO also monitors the public interest in terms of monetary misappropriation or the number of people affected. It also probes investor frauds, disappearing companies and cartelisation by firms.

Since inception, it has probed several complex cases, including the Ketan Parekh scam and the Satyam financial scam. More recently, it probed cartelisation among major cement firms, a case later referred to the Competition Commission of India for prosecution.

Structure
A multi-disciplinary organisation, SFIO employs about 60 people, deputed from services such as banking, taxation, police, customs and company law. Its Director, Nilimesh Baruah, recently deputed from the government’s taxation department, heads the team of joint directors. These joint directors, each having a team of his/her own, separately handle taxation, law, information technology, financial transaction, corporate law, capital market, forensic auditing, customs and excise. SFIO’s core investigative team comprises 40 officers.

While people with different expertise help the agency in probing a case from all dimensions, some argue this is not enough. The government must develop a separate cadre for SFIO, as it has for the Central Bureau of Investigation, they say. “Until and unless you develop a cadre, your purpose is not fully addressed. Without a cadre, one is unable to develop a proper structure of the organisation, as there is no ownership,” says Vijay.

To investigate the alleged Reebok fraud, SFIO has used imaging and cloning of computer systems to gather digital evidence. The agency is also looking at adopting recent technologies like data mining, which would enable it to secure a pattern of data for managing risks in corporate governance.

Need teeth
Given the purview of SFIO, some say it is not adequately staffed and needs more power to carry out its mandate. According to Mehta, unlike agencies in the US and Europe, SFIO lacks financial and legal resources to investigate the number of cases. “As it exists today, it is more of a token effort. It requires much more efficiency and powers,” he said. In the US, agencies like the Department of Justice are much stronger, he added.

In Britain, the Serious Fraud Office, an independent government department, investigates and prosecutes serious or complex fraud and corruption. The agency is part of the UK’s criminal justice system and has special legislative powers to secure evidence needed to build successful cases and bring criminals to justice. The European Anti-Fraud Office, popularly known as OLAF, is another agency which keeps an eye on such frauds. OLAF is part of the European Commission, with a special and independent status.

However, unlike its counterparts, SFIO lacks legislative recognition. Though the Naresh Chandra Committee had recommended a separate statute for SFIO, it continues to remain a body under the ministry of corporate affairs. Though the concept behind the organisation is “brilliant”, it is still a “toothless tiger”, says Vijay. “The team is competent, but it does not have powers to search, seize and arrest. SFIO can only do a post-mortem, not work on the surveillance process.”

Experts say during the investigation into the Satyam scam, SFIO found it difficult to secure court approvals to interrogate suspects or carry out searches, something seen as a handicap for such an agency.

Empowerment
To address this, the government is gearing up to give legislative recognition to the agency through the new Companies Bill. “We have proposed provisions that would enable SFIO to seize property and assets and conduct investigations independently. It would also empower it to interrogate anyone outside the country,” Moily said. Currently, the investigative agency takes up a case only when it is referred to it from the administrative ministry or from the judiciary; the new law would enable it to take up investigations on its own accord.

'Speak Asia fraud @ Rs 2,000 crore'

Home Minister R R Patil Monday said the Speak Asia fraud could be as big as Rs 2,000 crore and the money sent out of the country. The minister cautioned people against investing money in companies which make unbelievable promises and said economic offences to the tune of Rs 699.70 crore were reported in the state in 2010 alone.
Patil said cases had been reported against the Singapore-based company in other parts of the world and added that about 20 lakh people could have been duped in all. “We acted as soon as we received a complaint in the matter. People should be careful about investing money in companies which promise high returns within a short time. This company had given full-page advertisements in recognised newspapers and hired reputed advertising agencies,” said Patil, replying to a calling attention motion in the legislative council about economic cases and action taken on Speak Asia.
Patil said seven persons were arrested in the case while the accomplices were abroad. “We will hire CAs, lawyers and experts to tackle the crime,” said Patil.
Patil said a separate wing will be formed, with offices in the districts, to check economic offences. He said the government was keen to bring in a law to regulate such companies from attracting investors as the cases are now registered under Section 420 of IPC. “We passed a law which enabled property to be attached and money returned to investors. It was stayed by the High Court decision. We challenged it in court and it has now been accepted. Now, cases will be registered as per this law,” said Patil.
Meanwhile, the Economic Offences Wing has begun to get calls from more Speak Asia investors. “Our information is that Chief Executive Officer Manoj Kumar Sharma is travelling in the Gulf region,” said an EOW official.
“The immediate priority is to shut all communication channels and ensure the business model is shut. We have frozen many accounts in India which has given us a good idea that the money was not going back to the same business,” said the officer.

Sunday, August 12, 2012

You can steal public money, UP minister tells officials

You can steal public money, UP minister tells officials
Etah/Lucknow: In outrageous remarks, PWD minister Shivpal Singh Yadav, uncle of the UP chief minister Akhilesh Yadav, told officials that they can steal a little of public money if they work hard but they should not behave like dacoits.
As BJP and others lashed out at him, Shivpal, who appeared to have given official sanction to officials in the state to indulge in little bit of corruption, went into damage control mode, claiming the media had quoted him out of context.
Chairing a meeting of district programme committee on Thursday in Etah, Shivpal, the PWD minister, said, “Maine to usi din PWD walo se khule aam keh diya tha agar mehnat karoge to thodi bahut chori kar sakte ho, dakaiti nahi daloge (I have already told PWD people openly that if you work hard, you can steal a little, but don’t behave like dacoits”.
“Agar mehnat karoge, jee lagaoge, agar inhe meetha paani de doge to chori kar sakte ho (If you work hard, if you give them water then you can steal),” he had stated.
At a hurriedly convened press conference in Lucknow on Friday, Shivpal was hard pressed to explain his remarks.
He said it was a closed-door meeting with PWD officials in which the media had sneaked in and quoted him out of context. “What has been reported in the press is out of context. I had stated that the erstwhile government had indulged in large-scale corruption, cheating and stealing which, I said, should be stopped hundred percent,” the minister said.
When reporters persisted with the questions on his remarks, Shivpal said, “I have taken back those words. So, why are you raking it up. I have always cooperated with the press. I don’t know why the media is targeting me”.
Shivpal said, “I was in Mainpuri and Etah for a district programme and vigilance committee meeting on Thursday. No media was invited for the meeting but some how they entered and recorded informal talks held with people’s representatives and officers”.
Stating that such a practice was against journalistic ethics, he claimed that only a portion of recording was shown and not the entire informal discussion, which was going on after the meeting.
“I am always available for media... If such a practice continues I will issue only written statements”, the minister said.
Slamming Shivpal’s comments, BJP leader Lalji Tandon said “A minister’s statement is like a policy of the government and if he says so then the government is offering a licence to steal the public money. It is not appropriate for a minister to talk like this”.

Woman fights court for maintenance Procedural error by trial court results in long wait for divorce applicant

Woman fights court for maintenance
Procedural error by trial court results in long wait for divorce applicant

For Ritu Singh (name changed), life became a rollercoaster ride after getting divorce from her husband. She had to fight a long battle to get the maintenance money her husband had deposited in a court.
A procedural error by the trial court judge and his staff resulted in endless round of litigation and wait for almost a year for Ritu.
Coming to her rescue, the Delhi high court not only ordered the trial court to grant her maintenance of over Rs 1 crore, but also slapped a fine on the trial court which will be given to her.
Justice Rajiv Shakdher held the additional district judge (ADJ) guilty of not fulfilling his duties and showing insensitivity towards the woes of the litigant and said, “The concerned judicial officer as well as the court staff working with him were derelict in discharging their respective duties.”
The court’s direction came on a contempt petition filed by Ritu seeking her maintenance amount which was deposited in the court treasury despite her fulfilling necessary directions and procedures.
Ritu’s woes started in 2009 when she decided to end her marriage and move out of her husband’s house along with two minor children. She claimed 50% share in the shared property.
The property was sold for Rs2.25 crore and as directed by the court, Ritu’s husband deposited the money in the court. But the court kept the entire money with it and did not release it to her.
Ritu then moved the court seeking her maintenance amount, for which the order was issued. However, the money deposited was not released to her. She was informed that the money could not be released due to some administrative entanglement.
Ritu finally filed a contempt petition in the high court.
“The real value of money, having regard to the state of the economy, is depreciating each day. Therefore, the only manner in which this wrong can be reversed is by granting interest to the petitioner,” the court ruled while directing the state to compensate her with six per cent interest on the amount deposited in her name to be paid in four weeks.

Can’t deny anyone free legal aid: SC

Can’t deny anyone free legal aid: SC

The Supreme Court on Friday voiced reservations on whether free legal aid can be denied to an accused charged with abetment of prostitution, child abuse, and economic law violations.
“We have some reservations whether such exceptions can be carved out particularly keeping in mind the constitutional mandate and the universally accepted principle that a person is presumed innocent until proven guilty,” observed a bench of justices AK Patnaik and Madan B. Lokur.
“If such exceptions are accepted, there may be a tendency to add some more, such as in cases of terrorism thereby diluting the constitutional mandate and the fundamental right guaranteed under Article 21 of the
constitution,” the court said.
The SC also returned to the Madhya Pradesh high court an appeal filed by one Rajoo, who along with his friend Vijay, gang raped a woman living in a Madhya Pradesh village 14 years ago.
While the trial court had allowed a state-paid lawyer to the accused and sentenced to a 10-year jail term, the high court endorsed this order but without providing a free aid lawyer to the rapists.
That right to free legal aid is a fundamental right and this guarantee must be available to the accused, the top court said.

Thursday, August 9, 2012

Firm accused in financial scam now in realty fraud case

case of cheating has been registered against four persons at the Bhadrakali police station.
A case of cheating against four persons, against four persons was lodged with the Bhadrakali police, by In a complaint lodged by Kantaram Mali of Sinnar.
Mali, who claims to be the owner of three shops at Mumbai Naka, has alleged that the directors of a firm, Samruddhi Wealth Management, which had an office at one of Mali's properties, created fake property documents for Mali's Mumbai Naka shop and sold it to another duo, Anjali Rathod and Ashutosh Rathod. Mali has also alleged that Ashutosh Rathod forcibly tried to take custody of the property by threatening him.
the complainant has said that he owned three shop units at Padmavishwa apartment, Mumbai Naka, where a financial organisation Samruddhi Wealth Management had their office operated. The complainant allegedy that the directors of the firm financial organisation, Manisha Kshatriya and Ajay Kshatriya of Vijay Naga, Nashik, prepared fake documents of Mali's property at Mumbai Naka and sold it to hod and Ashutosh Rathod, by making a fake sales deed and registering it with the notary.
It may be noted that on April 8, a woman named Madhuri Kotkar of Deepali Nagar had lodged a complaint against the same firm, Samruddhi Wealth Management, for duping her of Rs seven lakh in a ponzi scheme where her investment money was never recovered. Subsequently, the directors of the firm, financial organisation, Manisha Kshatriya and Ajay Kshatriya triya, closed down their office at Mumbai Naka and fled. the scene.
According to Kotkar, she had invested Rs seven lakh with the company at Mumbai Naka that promised to double the invested amount in 14 months. However, with the passage of time, the company neither gave the assured returns nor the invested amount.
On April 7, Ashutosh Rathod published the title verification of the property, thereby cheating the complainant.
A case of cheating has been registered against four persons at the Bhadrakali police station. In a complaint lodged by Kantaram Mali of Sinnar with the Bhadrakali police, the complainant has said that he owned three shop units at Padmavishwa Apartment, Mumbai Naka, where a financial organisation Samruddhi Wealth Management operated. However, the directors of the financial organisation - Manisha Kshatriya and Ajay Kshatriya of Vijay Nagar, Nashik, prepared fake documents of Mali's property at Mumbai Naka and sold it to Anjali Rathod and Ashutosh Rathod, by making a fake sales deed and registering it with the notary. On April 7, Ashutosh Rathod published the title verification of the property, thereby cheating the complainant. Kantaram Mali has also alleged that Ashutosh Rathod forcibly tried to take custody of the property by threatening him.
It may be noted that on April 8, a woman named Madhuri Kotkar of Deepali Nagar had lodged a complaint against Samruddhi Wealth Management for duping her of Rs seven lakh. According to Kotkar, she had invested Rs seven lakh with the company at Mumbai Naka that promised to double the invested amount in 14 months. However, with the passage of time, the company neither gave the assured returns nor the invested amount. Subsequently, the directors of the company - Manisha Kshatriya and Ajay Kshatriya, closed down their office at Mumbai Naka and fled the scene.

Samruddhi Wealth Management Pvt Ltd fraud case

Samruddhi fraud amount goes up to Rs 3.75 cr
Nashik( 07-August-2012 )
Tags : Deshdoot Times,Samruddhi fraud amount goes up to Rs 3.75 cr   
Nashik: The amount of fraud in Samruddhi Wealth Management Pvt Ltd fraud case in which hundreds of investors were deceived under the pretext of doubling.....
      Nashik: The amount of fraud in Samruddhi Wealth Management Pvt Ltd fraud case in which hundreds of investors were deceived under the pretext of doubling the invested money in 14-month duration and 6% per month interest on Rs one lakh investment, has gone up to Rs 3.75 crore from the earlier Rs 1.25 crore. The number of duped investors is on the rise and police have failed in tracing the whereabouts of company MD Ajay Vasudev Kshatriya. After registration of a complaint against Samruddhi Wealth Management Pvt Ltd, Mumbai Naka in Bhadrakali Police, there is panic among the investors. The case was registered on Monday following a complaint by one investor Madhuri Kotkar who was the neighbour of Kshatriya. The next day, 14 more investors showed the Promissory Note and other documents given to them by Kshatriya to the police and gave written statements that they were cheated by Kshatriya. The amount of the fraud then went up to Rs 1.25 crore. In next four days, 71 investors submitted their documents and statements taking the amount to Rs 3.75 crore. Meanwhile, Bhadrakali Police have given letters to all banks in the city telling them to freeze all accounts of Kshatriya. In the inquiry, it’s been revealed that Kshatriya has Rs 4 lakh in his ICICI Bank account. Police has started the work to collect information on Kshatriya’s property. His colleague Sanjay Muralidhar Sonawane, resident of Sinnar, is also under the scanner of the police. According to information, people from various parts of the district have invested money in these schemes and Kshatriya has cheated even his close relatives. Some investors have informed that the number of investors is around 3,500 and expressed possibility that the amount of the fraud may go up to Rs 130-150 crore. Though some people have invested huge amounts, they are not willing to go to the police to avoid the Income Tax issue in future. These also include some government officials. It has also come to light that some people have become millionaires in the schemes of the company which was started 8-9 years ago. There are problems in tracing whereabouts of Kshatriya as he has switched off his mobile phone, however, the police are searching for the directors and agents of the company. Bhadrakali police station PI Narendra Gaikwad is investigating the case under the guidance of senior PI Bajirao Bhosale.

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