The criminal investigation department (CID), Pune, on Saturday arrested Sudhir Metha, brother of the late share broker Harshad Mehta, for allegedly duping city-based financial firms to the tune of Rs 86.39 lakh in shares investments in 1997. Mehta was untraceable for 15 years.
Acting on a tip-off, the CID team, led by deputy superintendent of police Vijak Tikole, arrested Mehta near a five star hotel in the city on Saturday evening. He was produced before the court on Sunday. He has been remanded to police custody till April 18.
The complaint in the case, about alleged cheating and forgery, had been registered with the Faraskhana police station by Pune Stock Exchange member and director of a finance company Gopal Rathi on July 29, 1997.
The CID had taken over the investigations from the Faraskhana police and had filed the chargesheet in 2004. The CID on November 14, 2011, had arrested Arvindbhai Manibhai Amin (69) and Laljibhai Manjibhai Patel (63), both residents of Ahmedabad, after their anticipatory bail pleas were rejected by the district and sessions court here.
Other suspects in the case, Bharat Somchand Khona, Prafulla Kantilal Rokadiya, both of Mumbai, Shashikant K Gandhi, Rajan Jayankumar Mehta of Thane, are currently out on bail. Pune based share broke broker Mangal Kewalchand Jain and Amit Naginbhai Shaha of Ahmedabad in Gujrat are still untraceable.
Investigating officer Tikole said in 1994, Mehta had taken over a private company from another suspect Amit Shah, who was working as managing director of that company. "Mehta and Shah on March 10, 1994 had brought issue of 75 lakh equity shares into the market and earned Rs 750 lakh," Tikole said, adding, "Out of 75 shares, the suspects had printed one lakh shares as fake and gave them to investors."
Tikole said in April 1995, suspect Bharat Khona had given shares of the companies to local share broker Jain who mortgaged them to city-based financial institutions and had taken huge amount from them. Jain gave the money to Khona, who in turn invested them in the share market.
Tikole said Jain had mortgaged 15,000 shares with the complainant Rathi's financial institution in Pune. After Jain became untraceable, Rathi sent the shares to the company to get them transferred on his name. "When he came to know the shares were fake and were of zero value, he had lodged the complaint with the Faraskhana police station against the suspects for duping him to the tune of Rs 1.95 lakh," Tikole said.
Tikole said the Sudhir Mehta, who is the brother of late share broker Harshad Mehta, was the mastermind in the case. He was untraceable since 1997. "We got a tip-off that Sudhir Mehta would be coming to a five star hotel in Pune. We laid a trap and arrested him," Tikole said.
Assistant public prosecutor R D Parmaj, who sough 14 days police custody for Mehta, said that the CID is yet to arrest another suspect Amit Shah in this case. "The CID wants to trace the other suspects involved in the case with the help of Mehta and also to recover the complainant's cash of Rs 1.95 lakh and the fake shares," Parmaj said.
The defence counsel Suchit Mundada told the court that the CID has already completed the investigations in the case. They also had filed the chargesheet. "The accused had been granted transit bail in the case by the court in 2004. The accused does not have any fake shares with him. Therefore, for recovering the bogus shares, his police custody is not needed," Mundada said.
China has launched a new 650-megawatt (MW) reactor at the Qinshan nuclear plant in the eastern province of Zhejiang, the project's operator said on Monday, as part of a push to increase the share of nuclear energy in the country's power mix. Nuclear power amounts to 12.528 gigawatts or around 1.1 per cent of China's installed power capacity, but projects under construction are expected to raise the total to more than 41 GW by 2015. China National Nuclear Corp said the new reactor had become operational at Qinshan, one of the country's first nuclear projects. The complex now hosts seven of China's 15 working reactors, and its aggregate generation capacity amounts to more than a third of the country's total nuclear capa city. Before Japan's biggest earthquake and tsunami in March devastated the country's northeastern coast and left an aging nuclear complex on the verge of a catastrophic meltdown, China was planning to double its original 40-gigawatt capacity target for 2020. It has since promised to "adjust and improve" its nuclear development strategy, and has said it will not approve any new projects until the completion of nationwide safety checks into existing plants and construction sites. According to state media, the government is likely to resume approvals for nuclear power projects in the first half of this year after a series of safety inspections at reactors and construction sites. Beijing's official capacity target for 2020 remains at 40 GW, and previous plans to increase the figure to as high as 86 GW are expected to be scaled back to around 70-75 GW amid concerns about safety, equipment shortages and the lack of qualified personnel.
Vodafone Group Plc is considering a number of actions following a budget proposal by India to retrospectively tax overseas transactions involving local assets, the company said on Friday, calling the idea "grossly unjust". Finance minister Pranab Mukherjee announced a new proposal that would allow authorities to back-date tax claims on overseas deals in his annual budget this month, in a move that business figures have said will hurt foreign investment. "We are urgently considering a number of courses of action, both in India and internationally, in consultation with our advisers and we continue to discuss these issues with a wide range of stakeholders both in India and internationally," the company said.
Vodafone won a five-year legal battle in January when the Supreme Court dismissed a $2.2 billion tax demand from authorities raised over the British company's acquisition of Hutchison Whampoa Ltd's Indian mobile assets in 2007. Business groups had hailed the court's decision as bringing clarity to the country's investment climate, but the proposed amendment to 50-year-old-tax laws would allow India to open a new front against the company. Vodafone, in its statement, said that the proposed amendments to the law have raised "widespread and profound concerns in the minds of international investors." The company, however, said that it was "not in a position to comment" on the possible actions it would take regarding the proposal. Vodafone's India unit is the country's second largest mobile telecom provider by revenue, and third-largest by subscribers. India's largest overseas corporate investor, the London-listed company's long-running dispute has come to symbolize the perils foreign firms face doing business in the country. The tax proposal, if written into law, could also affect Kraft Foods Inc's 2010 acquisition of Cadbury's Indian business and deals involving Indian assets sold by AT&T Inc and SABMillerPlc's purchase of Fosters.
Indian Institute of Technology- Delhi is the country's highest ranking institution in world with a global rank of 218, the Rajya Sabha was informed today. Minister of State for HRD D Purandeswari said during Question Hour that as per theQuacquarelli Symonds global system of ranking of higher education institutions for 2011, IIT-Delhi is the overall highest ranking institution in India at serial number 218. "As per the Times Higher Education World University Rankings for 2011, IIT-Bombay is the highest ranked institution at serial 317, while the Academic Ranking of World Universities has ranked Indian Institute of Science, Bangalore at serial 321," she said. As per the 2011 QS Engineering & Technology Rankings, IIT-Bombay is at serial 43, IIT-Delhi at 50, IIT-Kanpur at 59 and IIT-Madras at 60 in Computer Science and Information Technology. In the same ranking system in Civil and Structural Engineering, IIT-Bombay is ranked at serial 30, IIT-Kanpur at serial 38 and IIT-Delhi at serial 43. As per QS Global Business School Report, 2012, Indian Institute of Management-Ahmedabad has been ranked second in the Asia Pacific region, next to INSEAD (Institut Europeen d Administration des Affairs), Singapore while IIM-Bangalore, Indian School of Business, IIM-Calcutta and SP Jain Institute of Management and Research, Mumbai figure in the top 20 institutes. According to Financial Times London Global Buiness School rankings, IIM-Ahmedabad is at serial 11 and Indian School of Business at serial 13.
The environment clearance granted to Posco's mega steel project in Orissa in January 2011 will remain suspended till theenvironment ministry reviews it afresh, theNational Green Tribunal held today. "The environment clearance granted on January 31, 2011 to the project shall remain suspended till such review and appraisal is done by the ministry," a bench of tribunal comprising Justice C V Ramulu and Devendra Kumar Agarwal held. The tribunal pointed out that memorandum of understanding between the Orissa government and Posco states that the project is for production of 12 million tonnes of steel per annum (MTPA) but the environment impact assessment (EIA) report has been prepared only for 4 MTPA steel production in the first phase. It said the MoEF should take "policy decision" that in projects of such magnitude the EIA should be done for the complete project. "The EIA should assess it for the full capacity right from the beginning," it said. The tribunal directed the MoEF to review the clearance afresh and attach "specific conditions" which Posco would have to follow in a "defined timeline". It also directed the MoEF to set up a special committee to "monitor the compliance to the environment clearance" thus granted. The bench said appointment of Meena Gupta as chairman of the committee to review theenvironmental clearance showed "departmental bias" as she had only "supported" the environment clearance granted to Posco earlier during her tenure as the Secretary, the MoEF. "The entire process was vitiated in the eyes of law," the bench said in this regard. The tribunal also said that the project proponent should generate its own source of water instead of utilising the drinking water meant for the Cuttack city in Orissa. "In the country drinking water is scarce. It would be better to ask the project proponent to generate its own source of water. Avoiding utilising water meant for Cuttack city could be asked by the ministry," it said. The order came on a plea filed by environment activist Prafulla Samantray seeking quashing of the environmental clearance granted to Posco on the ground that it was "contrary to the provisions of the EIA Notification 2006" and was "illegal and arbitrary". Advocate Ritwick Dutta, appearing for the petitioner, had said that impact on environment in case of steel production by the plant to its full capacity would be much more. Prafulla, in his petition said, "It is admitted that the project will not be viable if it is restricted to the steel production of only 4 MTPA. In such circumstances, the EIA report should have been for 12 MTPA (of steel production). The project proponent has opted to do an EIA for 4 MTPA since the likely impact of 12 MTPA is bound to be much more and very significant". Posco India Pvt Ltd was granted environmental clearance for its two projects, steel-cum-captive power plant project and captive minor port, in Jagatsinghpur district of Orissa in 2007. The MoEF after reviewing the same, granted environmental clearance with additional conditions on January 31, 2011 which prompted the petitioner to move the tribunal. The clearance was assailed contending that "the whole approach of the Expert Appraisal Committee (EAC) was not to give an unbiased opinion, but rather to justify the decision to grant environmental clearance to both the projects." The environment ministry, however, had told the tribunal there was no infirmity in its decision to grant environmental clearance to Posco. Posco had also maintained that it has not violated any law and is working in compliance with the norms.
Mahindra & Mahindra on Friday announced formation of two separate joint ventures in defence sector targeting a minimum turnover of $1 billion in the next ten years. The joint venture (JV) partners will invest Rs 200 crore in the two new entities.
The first JV is between Mahindra & Mahindra and government of Israel-owned Rafael Advanced Defense Systems and another one is with US-based Telephonics Corporation.
In the wake of bribery allegations, Mahindra & Mahindra Vice Chairman and Managing Director Anand Mahindra said the government needs to revamp and bring in transparency in defence procurements.
Anand Mahindra in an interview with ET Now, spoke about the joint venture with 'Rafael' and how he is looking forward to opening up of foreign investment in defence. Excerpts:-
ET Now: What kind of JV is this with Rafael and how will it benefit you?
Anand Mahindra: The Rafael JV is with a sizable Israeli company, roughly about $2 billion. What we are excited about is that it is about hi-tech systems. When people think of defence, they think of guns, levy trucks. Increasingly though, the most important element of defence expenditure is going to be in systems. What makes this hardware intelligent, how hi-tech are our systems? That is going to make the difference between victory or loss in battles of the future.
That is where India needs to make investments. This JV is towards that objective. Rafael brings in very advance systems of surveillance, response. We are going to bring Rafael technology to bear on the FICV bid. If we are fortunate enough to be chosen for that procurement, then Rafael will provide the weaponry, response mechanisms on that system. It is a beginning of something which is going to be much larger.
ET Now: What kind of investments are going to be put into it? What kind of revenue contribution will it give you in the next 5 and 10 years?
Anand Mahindra: We are beginning with a Rs 100 crore investment which will be in the ratio of the equity ownership, which under current regulations is 74:26. As we go long we are looking at a business of roughly half a billion dollars over 10 years which works out to about $50 million a year. However, if we do win in the FICV bid then this revenue could climb to a billion dollars over the next 10 years.
ET Now: What kind of change do you want in defence procurements?
Anand Mahindra: Transparency. The system's know how, the processes, the very transparent processes that exist in the best private sector companies for any kind of procurement process. What people want to know is 'why (are) we buying something', 'what is its cost', 'what exactly was its competition', 'what are its technological features', 'why was it chosen'.
I believe there is no harm in enunciating and being transparent about that, which is what we will do in all our ventures for defence production. This is the real time for the government to make good its promise of involving the private sector to a much greater degree in defence procurement. If they do, then what you will immediately get is transparency and technology which is a hallmark of the joint ventures that we announced today.
ET Now: Can middleman be allowed in India?
Anand Mahindra: I do not want to comment on those because those are not important (sic), whatever the value chains that you have, the word middleman is a bad word. In many areas the polite word is intermediaries.
If there is value in intermediation terrific that is fine. To me that is not the point, the point is transparency. Not whether you have an intermediary or not. The question is how transparent are we about our processes.
ET Now: You said that as an Indian it worries you about certain reports that 90% of the Indian air force equipment is obsolete.
Anand Mahindra: Somebody asked me if I was worried about that particular report. I did not want to comment on that report because I have no knowledge about that report. I am not privy to that. Am I worried about whether we are adequately prepared? Yes of course. Our systems and hardware need to be upgraded dramatically. We have fallen behind on many schedules in all the armed forces. As an Indian, I am worried.
ET Now: You have always batted for more than 26% FDI in defence, it is not happening now do you still demand more?
Anand Mahindra: We batted right from the beginning of our JV with BAE. We batted very strongly that 49% was certainly valid and justified and we continue to bat and we continue to hope.
ET Now: It was public that you were bidding for SAP, are you still in the race?
Anand Mahindra: I do not think anything was public and our stand has always been the very cliched comment that we do not comment on speculation.
ET Now: You opted out of Air India at a very right time. What do have to say about Air India?
Anand Mahindra: I opted out because we have very big plans in aerospace. I felt it is a conflict of interest. It would be improper for me to comment because the board is working on transaction and given that I was privy to information while I was there, it would be highly inappropriate for me to comment.
Mahindra & Mahindra today announced formation of two separate joint ventures in defence sector targeting a minimum turnover of USD 1 billion in the next ten years. The joint venture (JV) partners will invest Rs 200 crore in the two new entities. The first JV is between Mahindra & Mahindra and government of Israel-owned Rafael Advanced Defense Systems and another one is with US-based Telephonics Corporation. The Indian partner will own 74 per cent stake in each, and the remaining 26 per cent will be with be the respective international entities. "What we are seeing Mahindra & Mahindra do is to focus on where India needs to go in future," Mahindra & Mahindra Vice Chairman and Managing DirectorAnand Mahindra told reporters while announcing the new ventures. The JV with Rafael will focus on development and manufacturing of products such as Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armour Solutions and Remotely Operated Weapon Stations for Futuristic Infantry Combat Vehicles (FICV). "Over a period of ten years, we are looking at a turnover of USD 500 million from this JV and if we are selected for the supply of FICV by the government of India then we expect that the turnover would immediately become one billion dollars," Mahindra said. Mahindra & Mahindra is one of the four companies which have received Expression of Interest (EOI) to supply around 2,000 units. An initial investment of Rs 100 crore in the JV with Rafael will be made. The JV will also set up a facility in Pune where mostly naval systems will be made, he said. Commenting on the JV with Telephonics Corporation Mahindra said: "A similar amount of investment is being made by the partners and in the next ten years, we are expecting turnover of half a billion dollar." This JV has been set up primarily for Surveillance Radar Systems, Identification Friend or Foe (IFF) and Communication Systems. In addition, the JV also plans to provide systems for air traffic management services, homeland security and other emerging surveillance requirements. The joint venture will set up a facility by early next year in Bangalore, Mahindra added.
