S.O.S e – Voice For Justice – e-news weekly
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Editor: Nagaraja.M.R.. Vol.11..Issue.49….….05/12/2015
RELIANCE INDUSTRIES LIMITED – WHERE IS ACCOUNTABILITY?
Dear mukesh & anil ambani,
The reliance industries has always got a favourable treatment from the state & central governments.there are allegations that ,
1.years ago, the central government gave import concessions for import of certain raw materials of textile sector ,which hugely benefitted the P.F.Y & TEXTILE projects of your’s ie reliance industries.
2.the O.N.G.C which has painstakingly surveyed the oil & gas reserves & prepared a list of lists,gave that list & you got godavari basin oil & gas project from the government .O.N.G.C could have developed it & earned millions.
3.few months back you were charged both by the government & cellular operators (GSM) that you are giving S.T.D & ROAMING FACILITIES to your reliance phone subscribers.your’s was only a W.L.L. they even claimed that you are misusing a legal loophole & causing crores of losses to the government & other GSM operators. however while the issue was before the T.R.A.I, the trai legalized your actions by announcing unified licence for telecom operators.
4.now you are charged by the government of re-routing ISD CALLS as local calls,thereby causing crores of losses to the government & BSNL.this time also you may get the reprieve from the government. the government ,if a commonman does not pay his electric bills in time slaps interest & cuts down the electric supply immediately. however the same government ,even if your company has been alleged of causing crores of rupees losses to the government & other players, always enacts favourable laws for you like a SANTA CLAUS.
WILL YOU PLEASE CLARIFY mr.mukesh ambani & mr.anil ambani?
the TRAI announced unified licence regime in haste that too with retrospective effects.so all the charges against reliance were dropped. in the same vein as unified licence got retrospective effect , why not the government re-imburse the differece amount out of hefty fees collected from other cellular operators ? take the reliance fees as bench mark.anyway , finally commonman is the looser.
PIL – Legal Prosecution of Government officials , Public Servants involved in Reliance Scams
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2015
IN THE MATTER OF
NAGARAJA . M.R ,
editor , SOS e Clarion of Dalit & SOS e Voice for Justice ,
# LIG 2 , No 761 , HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
Honourable Cabinet Secretary , PMO , Government of India & Others
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF
MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
Hon’ble The Chief Justice of India and His Lordship’s Companion
Justices of the Supreme Court of India. The Humble petition of the Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
Our whole hearted respects to honest few in judiciary , parliament & public service. Our salutes to them , due to honest efforts of those few noble persons only at least democracy is surviving in India.
A . “Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed.” Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt people’s representatives , police , public servants & Judges. Some of the below mentioned judges fall among the category of churchill’s men – Rogues , Rascals & Freebooters.
B . Loot of natural resources , telecom spectrum & public property in India and illegal aid to those criminals by government officials.
2. Question(s) of Law:
Are government officials , telecom , petroleum , finance department officials , police & revenue officials who aided loot , above Law & can go scot free ?
Requests for equitable justice , legal prosecution & punishment of guilty government officials and public servants .
Give what action has been taken by government of india or state governments or other statutory bodies against reliance industries for it’s irregularities in telecom , oil sector , etc.
That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
In the above premises, it is prayed that this Hon’ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
(ii) Hereby , I do request the honourble supreme court of india to legally prosecute guilty officials mentioned in the above said report.
(iii) Hereby , I do request the honourble supreme court of india to uphold the constitution of india , to protect natural resources and to protect the constitutional rights of all Indian citizens including mine.
(iv) Hereby , I do request the honourble supreme court of india to immediately keep all government officials mentioned in the above said report under suspension from service & to take necessary steps to protect all type of evidences.
(v) to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Date : 28th November 2015………………………………Filed By : Nagaraja.M.R.
Place : Mysuru India…………………………………………..Petitioner in person
Reacting to Arvind Kejriwal’s presser where he said that an FIR will be filed against Mukesh Ambani, current oil minister Veerappa Moily and former oil minister Murli Deora over the gas pricing formula, Moily said that we should sympathize with his ignorance since kejriwal doesn’t know how the government functions. He reiterated that the norms were being followed and there is a system for fixing prices.
ALSO READ: Kejriwal orders FIR against Mukesh, Moily
So who is actually ignorant in this case? Were the norms actually followed or has Kejriwal raised some valid points.
ALSO READ: T N Ninan: One more!
Here is a refresher and ready reckoner on the entire KG D6 gas basin controversy.
1) What is KG D6 basin?
Krishna Godavari (KG) Basin is spread across 50,000 sq km in the Krishna River and Godavari river basins near the coast of Andhra Pradesh. The site Dhirubhai-6 (D6) is where Reliance Industries discovered the biggest gas reserves in India. In government records, the 7,645 sq km block is known as KG-DWN-98/1. The KG basin is considered to be the largest natural gas basin in India.
2) How did Reliance Industries get into KG basin?
Government of India opened up hydrocarbon exploration and production (E&P) in the country to private and foreign players in 1991. Small and medium sized blocks were opened up in this round which was followed up by giving out bigger blocks in 1999 as per the New Exploration and Licensing Policy (NELP). Through NELP, Reliance bagged the rights to explore the D6 block.
3) Did government have a role after the block was handed over?
Since all mining resources belong to the people of India, government monitors the exploration and production of these. In the case of oil and gas sector, government enters into contractual relationship with the private player through a Production Sharing Contract (PSC). The PSC lays out roles and responsibilities of all parties, specifies the detailed procedures to be followed at different stages of exploration, development and production. It also specifies the cost recovery and profit sharing in the contract. Directorate General of Hydrocarbon (DGH) monitors the PSC. A PSC was signed between the government of India (GOI) and undivided Reliance Industries and its minority partner Niko Resources (10 per cent stake) for exploration and production of oil and gas.
4) What happened to KG D6 when the Reliance group split?
Even before production could start from the KG D6 wells, Reliance group was split vertically between the two brothers, with the gas business of Reliance Industries remaining with Mukesh Ambani, the elder brother. The brothers fought over this huge reserve of gas even though it was not theirs in the first place. The very first line of a production sharing contract clearly says that “By virtue of article 297 of the Constitution of India, Petroleum is a natural state in the territorial waters and the continental shelf of India is vested with the Union of India”.
The brothers while splitting their father’s empire split the gas reserves too. A family pact between the two brothers, which was never made public till the issue blew out of proportion, was at the core of the dispute. Anil Ambani owned RNRL (Reliance Natural Resources Ltd) citing the agreement by the brothers in 2005, claimed it had rights to gas from Reliance KG basin for 17 years at $2.34 per mmBtu (million British thermal unit).The Supreme Court finally settled the matter by saying that ‘the government owns the gas till it reaches its ultimate consumer and parties must restrict their negotiation within the conditions of the government policy’.
Here the role of the government needs to be highlighted. None of the ministries involved in the process, including the oil ministry which Moily now represents, raised the point that the gas reserves belonged to the country and was not a property of the Ambani family. Even the Prime Minister, ManMohan Singh meekly requested the brothers to settle their differences in the interests of the country.
But how did the Ambani brothers arrive at this magic figure of $2.34 per mmBtu when there was no benchmark. In fact ONGC was supplying gas to the government at half the rate.
5) How did Anil Ambani arrive at the price of $2.34 per mmBtu for KG basin gas?
In June 2004, National Thermal Power Corporation (NTPC) invited bids for supply of gas for its 2600 MW power plant in Kawas and Gandhar. Reliance Industries, hopeful of starting production of gas by the time NTPC’s power plant is ready bid for the project and was awarded it as the lowest ‘techno-commercial’ bidder. A Letter of Intent (LOI) was issued to Reliance Industries to supply 132 trillion units of gas per annum to NTPC for 17 years at a price of $2.34 per mmBtu. Anil Ambani used this as a basis for asking gas for his power plant.
6) Why is the NTPC-Reliance dispute all about?
Reliance Industries refused to sign the contract for supply of gas. Jairam Ramesh, the Minister of Power in a written reply to a question in Lok Sabha in 2009 said that “After issuance of LOI, RIL did not come forward to sign the Gas Sale and Purchase Agreement and sought major changes in the draft GSPA.In spite of all the efforts (by NTPC) RIL did not sign the GSPA agreed during the bidding process.”
NTPC dragged Reliance to Bombay High Court on December 20, 2005 but unfortunately the case that has dragged on. The case after nine years is still sub judice. Here again the government’s disinterest in protecting the interests of its own PSU has been a matter of much debate.
While NTPC was fighting the case with Reliance in the Bombay High Court, the government referred the matter to an Empowered Group of Ministers (EGoM) in 2007 headed by none other than the current President Pranab Mukherjee, who was then the finance minister. EGoM approved a rate hike of $4.2 per mmBtu of gas. This decision was taken without a single unit of gas coming out of the KG basin.
Reliance grabbed at this opportunity and said that it could not supply gas at a price lower than the mandated price set by the government.
7) How did Pranab Mukherjee arrive at the price of $4.2 mmBtu for gas?
The price was arrived by Reliance through its ‘price discovery mechanism’. As per a Reliance crafter formula, user companies were asked to quote a price which gave them a choice of arriving at a value between $4.54 and $4.75 per mmBtu. Reliance initially forwarded a figure of $4.59 which was later brought down to $4.3, but Pranab Mukherjee claimed victory by announcing a figure of $4.2 per mmBtu.
The brazenness of the entire exercise by the government can be seen from the fact that the objections raised by the Principal Advisor, Power and Energy to the government of India, Surya P Sethi along with the then cabinet secretary were ignored by the government. Surya questions the recommendation saying that nowhere is the cost of production more than $1.43.
8) Is it exploration or exploitation?
A CAG report released in 2011 (initiated in 2007 but delayed due to non-co-operation) on Performance Audit of Hydrocarbon PSCs castigated the oil ministry along with Reliance to retain its entire KG-D6 block in contravention of the PSC. As per the PSC, Reliance should have relinquished 25 per cent of the total area outside the discoveries in 2004 and 2005, but the entire area was declared as a discovery area (after initial objections) and the company was allowed to retain it. Without drilling adequate wells, Reliance kept on claiming that there was potential for petroleum. In CAG’s words this was done to confuse potential/prospectivity with actual discovery of hydrocarbons. The move allowed Reliance to keep the entire area to itself without following the norms laid under the PSC.
In a recent report CAG has said that Reliance moved directly from discovery to commercial production, skipping the intermediate appraisal programme step required as under PSC. CAG asks, without an appraisal programme how did the government and DGH ascertain the amount of gas in the well? And if they did not know how much gas was there in the well, what is the logic and basis of blaming Reliance of hoarding gas. Further, as pointed out by CAG, how did DGH assure itself of reliability of the development plan, production rate and production costs without the appraisal report?
9) Why more investments are bad?
CAG pointed out that as per the PSC, more investments, especially in initial stages would mean more profit for the operator and less for the government. This structure gives inadequate incentive for operators to reduce capital expenditure and provides them with substantial incentives to ‘front-end’ capital expenditure. Share of government profit varies from 85 per cent in a low investment scenario to 5 per cent in a high investment scenario. This explains the case of exaggerated investment made against Reliance Industries.
Incidentally, as pointed out by V Ranganathan of IIM Bangalore in his article in Economic Times, the case of exaggerated investment was first pointed out by Anil Ambani, where he pointed out that investment as per Reliance’s plan is increasing four times but production is expected to only double. Reliance revised its production estimates from 40 mmscmd (million metric standard cubic metres per day) to 80 mmscmd while increasing its investment from $2.4 billion to $8.8 billion.
10) How was the new pricing formula arrived at?
Former RBI governor C Rangarajan came out with a formula which has been followed nowhere in the world, which has resulted in Reliance (and other players too) getting a price on import parity basis. Surya Sethi, former Principal Adviser, Power and Energy, Government of India does not mince words when he asks the Prime Minister in an open letter [Read here] not to burden the nation with Rangarajan Committee’s madness that only benefit a select few.
Sethi’s open letter to the Prime Minister sums up the entire issue when he points out that the CAG’s findings reveal how crony capitalism benefited RIL. The pre-qualification norms were diluted to ensure RIL qualified, the claimed size of gas discoveries, the field development plans and the investment outlays proposed escaped rigorous due diligence says Sethi. Above all, the company’s commitments under the PSC on gas output were not enforced.
The entire episode stinks of anything but natural gas. While Moily may claim that system was followed, there is enough evidence out there that says otherwise.
After the 2G spectrum allocation scam of the UPA Government, another major telecom scandal in the allocation of 4G spectrum (BWA) has come to light by the recent CAG report. In fact, AAP leader and senior lawyer Prashant Bhushan has filed a PIL in the Supreme Court seeking cancellation of Reliance Industries’ telecom license and a through criminal investigation. Supreme Court had issued notice to Government and Reliance on that petition on 9th May 2014.
The factum of the scam is this. The UPA Government in March 2013 allowed a back-door entry of Reliance Jio Infocomm into voice telephony in violation of the judgment of the Supreme Court in the 2G case. This was done at the price discovered in 2001 of Rs 1,658 crores for a pan-India licence, which is the same price that was struck down by the Supreme Court in the 2G judgment because of having caused a huge loss to the public exchequer.
During May-June 2010 the auctions for 3G and 4G were concluded. The 3G auction fetched Rs 16,750.58 crore for 5+5 MHz spectrum in 2100 MHz (or 2.1 GHz) band. Thus, per MHz price worked out to be Rs 1,675 crore. Immediately, after the 3G auction, the 4G auction began which fetched Rs 12,847.77 crore for 20 MHz pan-India license in the 2300 MHz (or 2.3 GHz) band. This works out to be Rs 642.39 crore per MHz. This was so because all documents stated that 4G spectrum was for data services only, whereas 3G spectrum can be used for both data and voice telephony.
Infotel Broadband Services Pvt Ltd (IBSPL) emerged as the only company to have acquired pan-India 4G spectrum. IBSPL had an internet license since November 2007 and had just one subscriber with revenue of Rs 16.28 lakhs during 2009-10, and its authorized share capital was Rs 3 crore and the paid up capital was Rs 2.51 crore. Infotel Digicomm Pvt Ltd (IDPL) held 99.99% share of the IBSPL at the time of submission of application in March 2010.
Within hours of completion of 4G auction on 11.06.2010, IBSPL increased the authorised share capital from Rs 3 crore to Rs 6,000 crore. On 17.06.2010, the company authorized its Board of Directors to allot 475 crore equity share of Rs 10 each to Reliance Industries Ltd (RIL) and 25 crore equity share of Rs 10 to Infotech Digicomm Pvt Ltd (IDPL) aggregating to the equity capital of Rs 5,000 crore. On the same day, the company also decided to change from a private company to Public Limited Company (Infotel Broadband Services Ltd). Thus, the company within a week of winning the 4G spectrum disposed off 95% shares to RIL while 5% was retained by IDPL. Much later in March 2013, the company was renamed as Reliance Jio Infocomm Pvt Ltd.
CAG has found that the Government did not protect its interest at the time of framing eligibility criteria for the 4G auction. It allowed participation of internet (ISP) licensees without ensuring adequate safeguards in terms of net-worth of the companies participating in the auction. It found that while a UAS licensee or even a new company without a license was allowed to participate in the 4G auction, but they had to pass through the test of net-worth in order to become eligible, but no such criteria was specified for the existing internet (ISP) licensees participating in 4G auction. CAG observed that this criterion was important even for ISP-A licensees as they had to participate in the bidding where the reserve price was fixed at Rs 1,750 crore per pan-India license for 20 MHz spectrum in 2.3 GHz band. The only company which won the pan-India 4G license, was an ISP-A licensee, Infotel Broadband Services Pvt Ltd (IBSPL), a HFCL promoted group company. CAG has stated that IBSPL was given the ISP-A license in November 2007, and it had just one leased-line subscribers as on December 2009 and total revenue of just Rs 16.28 lakh for FY 2009-10. The paid-up capital was just Rs 2.51 crore and 99.99 per cent of it was held by Infotel Digicom Pvt Ltd at the time of submission of application for the 4G auction in March 2010. Thus, this company could not be termed as a serious player. And there were no checks in-built in the auction process to eliminate such non-serious players, CAG has observed.
After the company was taken over Reliance Industries, the Government allowed it to provide voice telephony (which was earlier prohibited) without conducting a fresh auction. This was done at the rate of Rs 1,658 crore which was fixed in 2001, and had been struck down by the Supreme Court in the 2G case for causing huge loss to public exchequer. The CAG has now concluded that besides vitiating the auction process, an undue advantage of Rs 22,842 crore was given to RIL at the cost of exchequer. The relevant part of the CAG’s report is reproduced below: –
It was found that the basis of the decision i.e. payment of entry fee of Rs 1,658 crore by ISP licensee for a permission to Pan India provision of mobile voice services using BWA spectrum considered by the DoT Committee, Telecom Commission and the MOC&IT, was primarily intended to fill the gap between the eligibility criterion stipulated for participation in the 3G / BWA auction in 2010 as UAS / CMTS licensees had paid entry fee of Rs 1,658 crore while ISP licensees had paid only Rs 30 lakh.
The DoT Committee, Telecom Commission and the MOC&IT however ignored the fact that the quantum of entry fee i.e. Rs 1,658 crore was basically discovered in 2001 through the bidding for the 4th Cellular licenses. Market conditions since then have changed drastically, and this price needed to be modified to reflect the present value. Neither the DoT Committee / TC under the Chairmanship of the Secretary DoT nor the MOC&IT felt the need for revision of the price discovered in 2001 as the entry fee for UASL in 2013, even when the Hon’ble Supreme Court of India had cancelled 122 licenses granted in 2008 on the basis of the same entry fee stating that it was impossible for them to approve the action of the DoT.
Therefore, by permitting ISPs to provide mobile voice service using BWA spectrum won in 2010 auction post-auction, the government has brought ISP licensees with BWA spectrum at par with UAS / CMTS 3G spectrum winners so far as provision of services are concerned – Voice, Data, etc., and post auction interpretation of such vital nature would appear to be arbitrary, inconsistent and not appropriate. Hence, IBSPL, now Reliance JioInfocomm, appeared to have been accorded undue advantage of Rs 22,842 crore i.e. the difference of the proportionate prices for 20 MHz block size in 2.1 GHz spectrum band (3G spectrum) and 2.3 GHz spectrum band (BWA spectrum) plus the Net Present Value of the entry fee for UASL at the end of FY 2009-10 (Rs 20,653 crore plus Rs 3,847 crore – Rs 1,658 crore). Besides, the sanctity of the entire auction process has been rendered vitiated due to post auction interpretations and interventions after three years. It was therefore no surprise that Reliance JioInfocomm was among the first group of companies which applied for UL immediately after introduction of the scheme and obtained the Letter of Intent (LoI). Had the spectrum blocks been specified and declared as liberalised spectrum blocks i.e. open for all technology / services in the NIA in February 2010, there was no doubt that bidders would have taken informed decision for putting up their bid and the market discovered price would have been significantly different for 3G and BWA spectrum.
Therefore, the Aam Aadmi Party demands the NDA government to immediately cancel the telecom license and allotment of 4G spectrum given to Reliance Industries and also a registration of an FIR by the CBI for a through criminal investigation into this scam involving Reliance Industries and the UPA Government.
Petroleum Ministry document leak: It’s a Rs 10,000 cr scam, claims accused Santanu Saikia; R-ADAG office raided
The dramatic claim comes after police arrested five senior executives from top energy firms and two consultants, including Sanatnu Saikia in the Petroleum Ministry ‘leak’ case.
A key accused in the corporate espionage case today claimed that it was a Rs 10,000 crore scam that he was trying to uncover as police said documents seized from corporate executives related to “national security” that can attract Official Secrets Act provisions.
Meanwhile, a local court remanded the five arrested corporate executives in police custody till February 24 for further questioning. Delhi Police also conducted raids here and in nearby Noida looking for stolen documents from offices of petroleum companies.
Santanu Saikia, a former journalist, now running an energy consultant running a website, claimed to reporters outside an Crime Branch office that it was a Rs 10,000 crore scam, which he was trying to uncover. “Please quote me,” he said as policemen took him in for interrogation.
Reacting to his claim, Petroleum Minister Dharmendra Pradhan said Saikia was saying such things for covering up his own defence.
“Let him spill out all the information he has. The primary accusation is that somebody stole the papers from the ministry. Police is investigating. Anybody has the right to tell everything to the police,” he said.
Pradhan said police is doing an independent job and everything will be clear after investigation. Law will take its course, whoever they may be, he said when asked about the arrest of executives of private companies.
Producing the five corporate executives arrested yesterday before Chief Metropolitan Magistrate Sanjay Khanagwal, the police said, “National interest was taken for a ride in the case.
“Documents related to national security have also been recovered. This may attract charges under the Official Secrets Act.”
The five–Shailesh Saxena from RIL, Vinay Kumar from Essar, KK Naik from Cairns, Subhash Chandra from Jubilant Energy and Rishi Anand from Reliance ADAG–who were produced in the court in police custody till February 24 for further questioning.
The police told the court that they have to consult the concerned ministries regarding the documents which have been recovered from the possession of the accused and their custodial interrogation was required to confront them with the same.
These five accused were procuring these sensitive documents at the behest of their senior officials, some of whom might be interrogated in the ongoing investigation, police said.
The advocates appearing for these five accused vehemently opposed the police’s plea seeking five days police custody, contending that their clients have been illegally detained since February 18 and 19.
The defence counsel also contended that there was nothing to be recovered from their clients and the police have not told the court regarding the specific allegations against these accused.
With the arrest of these five accused, the total number of arrests in the case rose to 12. Seven others were produced in the court yesterday out of whom four were sent to police custody till February 23 and three were remanded to judicial custody for two weeks.
Police sources said that Subhash Chandra, a senior executive with Jubilant Energy, who was arrested along with four other top officials of energy companies yesterday, was taken to Jain’s office in the morning.
After searching Jain’s office, the police team took him to the Noida office of Jubilant Energy. His office and some other rooms were searched by the police to recover stolen documents.
Office of another petroleum company whose executive was also one of them arrested was also raided by the police. Laptop and computers of the arrested officials have been seized by investigators which would be sent for forensic analysis.
Asked about the issue, Delhi Police Commissioner B S Bassi said, “We have searched places which were necessary for the course of investigation. We may further raid places as our aim is to reach the bottom of the whole thing.”
The police chief also said that investigation is on in the case and it will end only when a charge sheet will be filed.
“We need to know since how long this has been going on and who all benefited from it,” said a senior official.
According to police, all these company executives allegedly received stolen documents which have been recovered by police teams during raids from their establishments.
Saxena is Manager, corporate affairs, Reliance Industries Limited(RIL); Chandra is senior executive, Jubilant Energy; Anand is DGM, Reliance ADAG; Vinay is DGM, Essar and Naik is GM, Cairns India.
They have been booked under IPC sections 120 B (criminal conspiracy) and 411 (dishonestly receiving stolen property).
The case FIR, produced in a local court yesterday said an input on the National Gas Grid for the Finance Minister’s Budget speech of 2015-16 is among the various “secret” documents recovered from the accused.
The office of Reliance ADAG group at a premier five-star hotel here was also raided today by police in this connection.
“We are basically looking for the stolen documents from the establishments linked to the 12 people we have arrested so far. Searches are being conducted at various places in Delhi and NCR,” said a senior police official associated with the probe.
The raids have been confined to this region and not being carried out “across the country” as was speculated, he added.
Sources, meanwhile, said that police had also stumbled upon another module operated separately from the those arrested so far and their ‘area of operation’ was another plum ministry.
They added that a junior level officer and some more corporate executives are under scanner in this connection and arrests are expected by Monday.
The Supreme Court on Friday granted six weeks time to Mukesh Ambani’s Reliance Industries Ltd (RIL) to respond to the final CAG report, which found alleged irregularities including in payments made to the contractors on drilling of D6 wells at the Krishna-Godavari basin.
The apex court posted the next hearing for March 20 during which it would examine the RIL’s response to the CAG report that had sought disallowance of $357.16 million (about Rs 2,179 crore) expenditure RIL incurred on drilling of wells and payments to contractors in KG-D6.
Solicitor General Ranjit Kumar said the Centre can make comments on the Comptroller and Auditor General (CAG) recommendations and findings only after getting the report of the Parliament’s Public Account Committee which is examining it.
The order was passed during a brief hearing of petitions filed in 2013 by senior CPI leader Gurudas Dasgupta and NGO Common Cause, challenging the then UPA government decision to double the price of natural gas from $4.2 to $8.4 per mmbtu and seeking cancellation of RIL’s contract for exploration of oil and gas from the KG basin.
The third PIL on the issue has been filed by advocate M L Sharma. A bench headed by Justice T S Thakur also allowed Dasgupta and other petitioners to file their response to the NDA government’s fresh guidelines which would “supersede” the earlier UPA dispensation’s policy on price fixation for natural gas, including that from KG basin, which has been the bone of contention between the Centre and RIL.
The Solictor General on November 14, 2014 had said before the bench, which also comprised justices J Chelameswar and Kurian Joseph, that the ‘new domestic natural gas policy’ was approved by the government on October 18 raising natural gas price to $5.61 per mmbtu from November 1 and had said that “recommendation of the Rangarajan Committee would not be given effect”.
The Rangarajan formula on gas pricing was approved by the previous UPA government. Rangarajan was Chairman, Economic Advisory Council to the then Prime Minister.
In its second audit of RIL’s eastern offshore KG-D6 block, the CAG on November 28, 2014 recommended disallowing the company from recovering $279.8 million in cost of three wells as well as a part of expenditure the firm had incurred in area which was improperly declared discovery area.
The CAG, in its report tabled in the Parliament, found irregular payment of $427.48 million to contractors, of which it sought disallowance of at least $77.36 million cost. Earlier RIL’s senior advocate Harish Salve had said “he is not happy with the new guidelines (on gas pricing)”.
While the Centre has maintained that the issue raised by Dasgupta has been addressed with the new guidelines, advocate Prashant Bhushan, appearing for the NGO, had said several other issues needed to be argued.
He had said that the draft CAG report itself suggested that RIL “hugely over-estimated” the reserves of the KG gas block and other irregularities are cited.
Among the other issues, the NGO has alleged that fraud was committed by RIL requiring government to take back the field and there was a need for court-monitored probe on the issue.
Dasgupta and the NGO had said government should be asked not to make “any further increase” in the price of gas produced by RIL from KG basin.
RIL has refuted the allegation of extraneous consideration for the increase in the gas price from $4.2 to $8.4 per mmbtu for the gas taken from the existing fields like KG D-6 basin. RIL had submitted that the gas output from KG basin has fallen to 8 mscmd against expected 80 mscmd due to “technical reason”.
M Veerappa Moily, the then Union Minister of Petroleum and Natural Gas, was also named as one of the respondents in the petitions. The PILs have also sought imposition of penalty on private parties for failure in adhering to commitments.
The petitioners have sought a direction for a thorough audit by CAG of the working of the production-sharing contract (PSC) governing KG block, gold plating by RIL, underproduction by RIL and all related issues.
The former CPI MP had alleged collusion between the government and the company, saying RIL “is holding country’s energy security to ransom”. He also said that natural resources belong to the citizens and the government.
The Common Cause has supported Dasgupta’s arguments and referred to controversial intercepted telephonic conversations between former corporate lobbyist Niira Radia with others to support the allegation of collusion.
The NGO has urged that Centre should wait for the outcome of the two petitions pending before the apex court.
Kejriwal trains his guns on Reliance Industries Limited ( RIL ), wants gas pact cancelled
Kejriwal attributes Jaipal’s ouster to his refusal to carry out Mukesh Ambani’s diktat
India Against Corruption on Wednesday launched a scathing attack on the NDA government as well as the Manmohan Singh government for protecting the interests of corporates, especially Reliance Industries Limited (RIL). It demanded that the government’s contract with RIL be scrapped as the Mukesh Ambani’s company allegedly cut down on production from its KG D6 gas- field to gain huge profits after the proposed gas price revision.
Linking the shifting of Jaipal Reddy from the Petroleum and Natural Gas Ministry to his refusal to follow RIL’s diktat to revise the price before the scheduled deadline of April 2014, IAC leader Arvind Kejriwal said Mr. Reddy was shunted out as he refused to bow to RIL, arguing that a price revision would fetch the company an additional profit of Rs. 43,000 crore.
“Mr. Reddy had prepared a note for the Empowered Group of Ministers (EGoM), in which he mentioned that acceptance of RIL’s demand would mean an additional profit of Rs. 43, 000 crore [to the company]. Most of this gas is used in power and fertilizer production. Increasing the gas price would mean an additional financial burden of Rs. 53,000 crore on the Central and State governments. This would in turn mean higher power and fertilizer prices… or a higher subsidy burden on the taxpayer,” Mr. Kejriwal said in his third expose, after targeting Congress president Sonia Gandhi’s son-in-law Robert Vadra and BJP president Nitin Gadkari.
Mr. Kejriwal, who addressed journalists, along with Supreme Court lawyer Prashant Bhushan, said that in 2006, it was Mani Shankar Aiyar who got the axe and Murli Deora was brought in to allow RIL to increase capex from $2.39 billion to $8.8 billion and to increase the gas price from $2.43 per Million Metric British Thermal Units (mmBtu) to $4.2 mmBtu. “We demand that the contract with RIL for the KG D6 be scrapped immediately and the state-run companies like ONGC be given the block for future production. The government should immediately put in place adequate systems to get full production from the KG D6 at the cheapest prices for the country and its people.”
Mr. Kejriwal said that under RIL’s contract, the company was supposed to sell gas at $4.2 per mmBtu until March 2014. But midway, the company wanted the price increased to $14.2 per mmBtu.
Mr. Kejriwal and Mr. Bhushan alleged that to pressure the government to revise the gas price, RIL had substantially reduced production for over the past one year. The total consumption in the country stood at 156 Million Metric Standard Cubic Metre Per Day (mmscmd). RIL was supposed to produce 80 mmscmd from 2009. However, it was turning out just 27 mmscmd. “Production was being artificially kept low to blackmail the government. They are not just hoarding gas but also forcing various consumers to buy gas from abroad. Gas from abroad costs $13 per mmBtu, and if RIL’s demand for increasing the gas price is accepted, it will lead to the shutdown of several gas-based power plants and an increase in power and fertilizer prices. It will result in Rs. 43,000 crore of additional benefits to RIL.”
Mr. Kejriwal said the drastic reduction in gas production forced many gas-based power plants to shut down or run with a reduced capacity. “Today, power from a gas-based power plant costs Rs. 3 a Kwh (Kilowatt hour). If the gas price is increased from $4.2 to $14.2 as demanded by RIL, power rates will go up to Rs. 7 a Kwh. “We urge the people of this country not to allow the government to pass the huge benefit to RIL and [to] flood the Petroleum Ministry and its new Minister, Veerappa Moily, with RTIs [Right to Information questions] … so that he does not dare to undertake any revision. We should not allow this government, which changes Ministers at the instance of Mr. Ambani, to work at the direction of RIL.”
Mr. Kejriwal played the clippings of tapes, involving conversations between corporate lobbyist Niira Radia and Atal Bihari Vajpayee’s son-in-law Rajnan Bhattacharya. “First, the NDA regime favoured RIL in the structuring of the deal in 2000, and various modifications were made thereafter.” Citing the CAG’s report on the KG D6, he alleged that the motivated structuring of the contract could cost the exchequer up to Rs. 1 lakh crore.
He said RIL had signed a contract with state-run NTPC in 2004 to supply gas for its power plants at $2.34 per mmBtu. However, the company backed out of the deal, and the matter was in court. “UPA I or UPA II did not deem it fit to vigorously take up the case of NTPC against RIL, but worked in a proactive manner to get the price revised for RIL gas. The EGoM, headed by the then Finance Minister, Pranab Mukherjee, revised the gas price to $4.2 per mmBTU, and by doing so, it gave RIL an undue benefit of Rs. 8,000 crore.
Kejriwal’s latest: Reliance blackmailing govt, Mukesh Ambani running India
NEW DELHI: S Jaipal Reddy was axed as petroleum minister for refusing a Mukesh Ambani-led Reliance Industries’ proposal to hike charges of gas it supplied to state-run power plants, India Against Corruption’s Arvind Kejriwal charged on Wednesday, demanding that the Krishna Godavari basin allotted to the company be taken back.
“Mukesh Ambani is running the country it seems,” Kejriwal told the media here. “Jaipal Reddy was removed as he refused to hike the charges levied by Reliance Industries to supply gas to the NTPC (National Thermal Power Corp).”
Reliance called the charges “irresponsible”.
According to Kejriwal, the KG basin was awarded to Reliance in 2000 by the NDA government when the company agreed to supply gas to the NTPC for the next 17 years at $2.34 per unit.
But, said Kejriwal, the company revised the rate to $4.25 per unit in 2007 which then finance minister Pranab Mukherjee agreed to as the head of an empowered group of ministers.
“The entire contract was meant to benefit Reliance because … the cost would be determined by the company, and if the cost increases, so will the profit,” he said, adding this was unheard of in business.
The company, he said, revised the rate to $4.2 per unit in 2007, which then finance minister Pranab Mukherjee agreed to as head of an empowered group of ministers, benefiting Reliance to the tune of Rs.10,000 crore.
Kejriwal alleged that in 2006 then petroleum minister Mani Shankar Iyer was removed and Murli Deora brought in to increase Reliance Industries’ capital expenditure from $2.39 billion to $8.8 billion, and to hike gas price from $2.34 per unit to $4.2 per unit.
Later, the company wanted the rate further hiked to $14.2. Jaipal Reddy, who reportedly did not agree to the proposal, was shunted out in Sunday’s cabinet rejig, said the activist-politician.
Kejriwal released to the media a “secret” document of the petroleum ministry that said that accepting the Reliance demand would generate for it an additional profit of Rs 43,000 crore ($8.5 billion).
“In order to pressurize the government, RIL substantially reduced its production of natural gas,” a statement from India Against Corruption said.
“Production has been artificially kept low to blackmail the government. They are not just hoarding the gas but also forcing various consumers to buy gas from abroad.”
When Reliance sought Prime Minister Manmohan Singh’s intervention, he asked the attorney general to find out if the gas prices should be hiked or not.
“Why did the PM not show similar concern when NTPC was forced to accept higher gas price from RIL? Why is the PM not pulling up Reliance for not producing gas as per their commitment? Why did the PM not seek legal opinion when the country’s interests were at stake?”
Kejriwal, who was flanked by fellow activists Prashant Bhushan and Manish Sisodia, demanded that Reliance Industries’ “blackmailing” should be immediately stopped.
“Their KG Basin contract should be cancelled. The government should immediately put in place adequate systems to get full production from KG Basin at the cheapest price for the country.”
The Bharatiya Janata Party (BJP) asked the prime minister to respond to IAC and explain why Jaipal Reddy was dropped from the petroleum ministry.
“Is it any malfunction in the ministry that has persuaded Manmohan Singh to effect this change? Or is that Jaipal Reddy was not found a ‘convenient’ minister? Or is this another example of corporate interests taking precedence over national good?” BJP leader Jaswant Singh asked.
After taking on Congress president Sonia Gandhi’s son-in-law Robert Vadra and BJP president Nitin Gadkari, anti-corruption activist-turned-politician Arvind Kejriwal on Wednesday charged Mukesh Ambani, India’s richest man and chairman of Reliance Industries Limited (RIL), with getting undue
• Cong slams IAC over RIL allegations, questions source of funding
• RIL denies IAC allegations, says chargess made at ‘behest of vested interests’
• BJP to govt: Was Jaipal shifted to benefit RIL?
favours from the government over a contract to develop natural gas fields.
The allegations pertain to RIL’s D-6 block in the Krishna Godavari (KG) basin, India’s largest gas producing field off the eastern coast in Andhra Pradesh, which is being jointly developed by RIL and its partners, Britain’s BP and Canadian firm Niko Resources.
Kejriwal and his colleague, lawyer Prashant Bhushan, termed the deal a “classic case of crony capitalism” and said both the BJP-led National Democratic Alliance (NDA) and Congress-led UPA (United Progressive Alliance) governments were responsible for RIL getting this contract.
The contract, signed in 2000 by the then NDA government, according to Kejriwal, would rob the national exchequer of revenues to the tune of Rs. 45,000 crore if RIL’s demands for a higher price for its gas were met.
The government has not decided yet on a demand by RIL to raise the price of gas from the field to $14.25 per unit from $4.25, the subject of a long-running controversy.
In a brief statement, RIL dismissed the charges as being “devoid of any truth or substance”.
“Irresponsible allegations made by IAC at the behest of vested interests without basic understanding of the complexities of a project of this nature do not merit a response,” it added.
Petroleum minister Veerappa Moily refused to comment.
“I have better things to do,” he said.
“I don’t want to respond.”
The press conference also witnessed high drama when a Congress worker wanted to question Kejriwal, but was heckled by camerapersons and IAC volunteers, and forced to leave the venue.
Kejriwal based his attack on the government and RIL on the so-called ‘Radia tapes’, a collection of phone taps from between 2007 and 2009 in one of which someone thought to be former prime minister Atal Behari Vajpayee’s son-in-law Ranjan Bhattacharya is heard telling RIL and Tata Group’s corporate lobbyist Niira Radia that Ambani had told him that “Congress to apni dukaan hai”.
The unearthing of the Radia tapes had triggered accusations of corporate influence in the distribution of ministers’ portfolios in the UPA’s second term.
On Wednesday, Kejriwal gave this accusation fresh legs by linking Jaipal Reddy’s removal from the petroleum ministry on Sunday to his run-ins with RIL over the pricing of gas.
He also gave a populist spin to his allegations by linking the government’s restriction on the supply of cheap LPG cylinders to the public to the high profits being allowed to RIL.
“We want to know why the PM’s heart beats only for RIL. Why did he not seek the attorney general’s opinion when NTPC was not getting gas at cheap rates?” Kejriwal said.
State-run National Thermal Power Corporation (NTPC) had sought cheaper gas to fire its power plants.
* In 2006, Mani Shankar Iyer was removed and Murli Deora brought in to increase RIL capex from $ 2.39 billion to $ 8.8 billion and to increase gas price from $2.34 per mmBTU to $ 4.2 per mmBTU
* In 2012, Jaipal Reddy has been removed and Moily brought in to increase gas prices from $ 4.2 per mmBTU to $ 14.2 mmBTU and to condone RIL’s blackmailing of reducing gas production
* Both BJP and Congress involved. BJP signed a sweet deal with RIL in 2000. Congress faithfully implemented it
* If RIL demand of increasing the gas price to $ 14.2 is accepted, it would lead to shut down of several gas based power plants and increase in power and fertilizer prices
* By this deal, RIL would benefit by an additional Rs. 43,000 crore
* In Nira Radiia tapes, Ranjan Bhattacharya (Vajpayee’s son in law) is heard telling Nira that Mukesh Ambani told him –“Congress to ab apni dukaan hai”
* Huge benefits given to RIL in last one decade despite flagrant violations of various agreements by RIL. Benefits to RIL causing serious price rise in the country.
* “In order to pressurize the government, RIL substantially reduced its production of natural gas. Total consumption of natural gas in the country is 156 mmscmd. According to agreement, RIL was supposed to produce 80mmscmd (more than 50% of the total demand) from 2009.”
* “RIL got this contract during NDA regime in the year 2000. The contract was meant to favor RIL right from the beginning. In any business, increase in costs means decrease in profits.”
The IAC press release alleged that performance of RIL so far has been much worse than perhaps the worst performing government department.
1. 4 times cost escalation within 2 years from $ 2.39 billion in 2004 to $ 8.8 billion in 2006.
2. Increase in gas price from $ 2.34 per mmBTU in 2004 to $ 4.2 per mmBTU in 2007 to the present demand of $ 14.2 per mmBTU.
3. Capacity created for producing 80 mmscmd after incurring such a huge cost ends up producing just 27 mmscmd after 12 years.
4. 31 oil wells should have been in production till now. Out of them, just 13 are functional.
Kejriwal and lawyer Prashant Bhushan, a leading member of IAC, alleged the allocation of KG Basin to Reliance is on similar lines as coal block allocation scam. They alleged both Congress and BJP were in ‘Ambani’s pocket’.
REAL STORY OF Late DHIRUBHAI AMBANI of Reliance Industries
Another Major Scam : Govt. Favours Reliance In KG Basin
The CAG draft report that nails the connivance between Government agencies and Reliance Industries Ltd. leading to huge losses to the Government exchequer is yet another example of the power of corporates in the UPA Government to subvert rules and regulations in their favour.
The CAG has noted that the former Director-General of Hydrocarbons (DGH) permitted Reliance to inflate its “development costs” on the gas extraction in the D6 block of KG basin from 2.47 billion dollars to a whopping 8.84 billion dollars. This money taken by RIL affected the revenues of the Government. Government should prosecute the former DGH without any delay.
The Government’s connivance with RIL has a direct impact on the aam aadmi because increased claims of development cost get reflected in the price of gas given to consumers and also affect the prices of fertilizer and power. Letters have been written to the Prime Minister to institute an independent enquiry into the complaint of artificial jacking up of the capital expenditure by RIL for D6 KG Basin and its hasty approval by the concerned authority to find out the actual cost before gas price is fixed.
In a repeat of the 2-G scam, the Prime Minister’s silence on the issue, has again exposed the UPA Government’s acquiescence to corporate manipulation.
1. The Great Billion Dollar Drug Scam
2. Supreme Snub : Court SIT A Major Embarrassment For Govt
3. Now A Petroleum Scam?
4. The -Reliance KG Gas Scam Prabir Purkayastha, Newsclick
5. Way to Rural Self Reliance: National Rural Livelihoods Mission (NRLM)
6. Demand For JPC On Spectrum Scam :Go Beyond Rhetoric
7. THE ADARSH SOCIETY SCAM A Shocking Exposure of Congress govt Venality – Ashok Dhawale
8. SUPREME COURT VERDICT ON KG BASIN GAS -Dipankar Mukherjee
9. AMBANIS ROW : GOVT HAS LAST WORD ON KG BASIN GAS PRICE : SC
10. POOL PRICING FOR KG BASIN GAS TO HARM ANDHRA PRADESH INTERESTS
11. PRODUCTION OF GAS IN KG BASIN
12. FINDINGS OF ICAI IN SATYAM SCAM CASE
QUESTIONS FOR MONEY – PARLIAMENTARY ACTS/LEGISLATIONS FOR ????-improper functioning of democracy in india
the vohra committee report has proved the criminalisation of politics in india. There are many number of criminals in the parliament & state legislatures. Some of those criminals are cabinet ministers as well as members of vital parliamentary committees. Thereby, they are in a position to manipulate , enact laws favouring , benefitting the criminals their cronies.
Just see how the GOI gave export incentive of Rs.1800 crore to reliance petroleum although it didn’t even export a barrel. Reliance infocom & tata teleservices were CDMA mobile service providers & have paid license fee of few crores only equal to landline fees without any competitive bidding . They were supposed to provide mobile service to operate like fixed phones within a radius of 40k.m. however they were providing service like mobile service from one state to another like GSM mobile service providers. By this act of RIC & TTSL , the GSM providers who have paid thousands of license fee in competitive bidding were economically hurt , the dispute went to court. The court was on the verge of pronouncing it’s verdict awarding damages worth Rs.18000 crore to GSM players & Rs. 3000 crore of license fees with penalty to GOI. The government announced a unified telecom license regime with retrospective effect. Thereby, the GOI lost thousands of crores of rupees & the share holders of GSM players lost thousands of crores. Once again the RIC was charged by PSU bsnl THAT RELIANCE IS RE-ROUTING INTERNATIONAL CALLS AS LOCAL CALLS & SWINDLING THE GOI. This time too, GOI bailed it out. during the dispute between ambani brothers the younger ambani mr. Anil ambani director of reliance himself has stated that for the favours received from the GOI , the company gifted some shares to then IT & COMMUNICATIONS MINISTER mr. Pramod mahajan.
Various indian & multinational companies are looting indian exchequer to the tune of thousands of crores of rupees , through lobbying / bribing. In india, indirect democracy is the form of governance. In this form, people’s representatives are bound to raise the questions , issues concerning their constituents on their behalf , on the floor of the house. However the sad part in india even after 58 years of democracy , is the lobbying is at it’s peak. The lobbying is a gentleman’s white collared crook’s way of forming favour seeker’s group , creating a corpus to pay lumpsum bribe & influencing decision making. The people’s representatives are bound to represent their people first , then their party & party think tanks. India has come to this sorry state of affairs , widespread corruption , huge black economy & rampant poverty, all due to inefficient legislations & enforcements. These think tanks & IAS lobby, consider themselves as most super brains on earth & gives out suggestions . the present state of affairs is a barometer of their brilliance. These think tanks & IAS lobby are the hand maidens of lobbyists / bribers.
Now consider the following example : Mr.raj gandhi is a member of parliament from mandya constituency in karnataka state. He is a MBA graduate & member of ruling indian progressive party. The multinational giant M/S GREY HOUND CORPORATION wants to enter into paper manufacturing business in india. It’s sight falls on the public sector paper giant mandya national paper mills ( MNPM) in mandya district of karnataka. The MNC effectively lobbies with the government. The ruling party think tank & the cabinet advisory group recommends to the government to make strategic disinvestment in the PSU M/S MNPM. They bring out graph with full power point presentation stating that it is good for the company as well as the government. The lobbyists follows it up with media reports on the positive aspect of strategic disinvestment. A favourable impression is created in the minds of literate public. The cabinet committee okays it.
The ” strategic dis investment issue ” comes before the parliament for legislation / approval. The ruling party issues a party whip to it’s members to vote in favour of dis investment. However M.P mr.raj gandhi who is an MBA in his own wisdom also favours the dis investment. However ,most importantly the constituents – people in mandya parliamentary constituency through protest marches , mass post card campaigns lakhs in numbers expresses their disagreement with the dis investment & urges their MP mr.gandhi to vote against the disinvestment legislation.
On the D-day in parliament , mr. Raj gandhi as per his party whip & his own wisdom votes in favour of strategic disinvestment legislation, much against the wishes of his people , constituents & mis represents them in parliament. the democracy has failed here. in This way democracy is being derailed since 65 years in india.
In democracy, party whip , MP or MLA’s own wisdom / brilliance, think tank & IAS lobby recommendations are all secondary , the constituent’s of his constituency , people’s wishes aspirations are of primary importance & supreme. What people need is a honest representative, who simply delivers the people’s aspirations on the floor of the house back & forth , without superimposing it with his own ideas & party ideas. For true democracy , the people’s representatives must be true postmans.
Towards this end , the people must be educated about their democratic rights & responsibilities. This is an appeal to the honest few in the parliament & state legislatures to weed out their corrupt colleagues , lobbyists, to uphold the dignity of the house & to install democracy in it’s true form.
THREAT TO INDIA’S SECURITY BY CORPORATE CRIMINALS
– An appeal to honourable prime minister of india & honourable chief minister of Karnataka
In india , since ages certain section of people – dalits , tribals are being oppressed in the name of caste by forward caste people. The name sake independence has not changed the lives of dalits & tribals. The upper caste people were in control of government & economic sector before independence as well as after independence too. The upper caste people are now MPs , MLAs & are running businesses . they have framed rules , laws to suit their ends. They are getting bank loans , subsidies , tax cuts , etc , by greasing the palms of those in power – their own caste men. The reservation policy is just a vote winning gimmick of forward caste politicians , it is neo divide & rule policy. Only few dalits with money & contacts have benefitted , by the reservation policy of government. Majority of them are still sufferring from utter poverty & social oppression.
Now, due to rapid industrialisation & globalisation a new economic divide has taken place – rich & poor , haves & have nots. Now, economically poor are also being oppressed along with dalits. The forward caste people in government have framed laws to suit their ends , they have provided concessional priority loans , tax cuts , subsidies , etc from the government to corporate sector . The corporate sector has demanded & got monetary benefits , infrastructure facilities from the government . however the same corporates , MNCs are violating statuotary laws & are averse to social welfare measures of the government . they are averse to provide jobs to dalits , tribals & poor , why ? these corporates are bribing the labour , tax department & other government officials . as a result the government is loosing tax revenues to the tune of thousands of crores every year , the government doesn’t have money to provide social welfare measures to common people. The lives of common people are under threat.
Now, the number of common people dying due to starvation , lack of health care is more than in a war field. The threat to unity & integrity of india is more from the corporate sector than pakistan or china.
Now, the government of india & other state governments are literally under corporate control. HRW has brought to the notice of government cases of statuotary law violations by various corporate entities ,
till date no action has been taken. Why ? hereby , HRW once again offers it’s conditional services to the government of india & karnataka in apprehending corporate criminals , corrupt tax , labour , pollution control board offricials. Are you ready sir ????
COVERING-UP CORPORATE FRAUDS IN INDIA
– CORPORATE ACCOUNTABILITY & CORPORATE GOVERNANCE NEED OF THE HOUR
In India , most of the commercial ventures cheat the government of it’s rightful tax dues. As a result the governments doesn’t have enough money to carryout it’s social welfare duties – Providing health care , food , potable water to all. In turn common people are dying due to lack of health care , hunger , mal nutrition , etc. the murderers of these commoners are TAX EVADING CORPORATES , the politicians & officials keep mum by taking bribe.
Nowadays , even the underworld activities of mafia , terrorist outfits , political parties are being financed by the illegal corporate deals. Who says threat to India is from Pakistan only , it is most likely from our own entrepreneur. Till date the GOI has not put any corporate bigwigs behind bars for their crimes. The corporate lobby always clamours for flexible labour laws , credit policies as in U.S.A , but are mum about SOCIAL SECURITY NET , ENVIRONMENT POLICY & CORPORATE GOVERNANCE as in the same U.S.A. Why ?
Recently , it has been published that , in India out of vast sales of counterfeit MOVIE CDs & software CDs , underworld is funding narcotics trade , terrorist movements. It is high time the small investors , public became aware about the activities of their neighbouring businessmen / Entrepreneurs.
List of Reliance Scams
Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. The company operates in five major segments: exploration and production, refining and marketing, petrochemicals, retail and telecommunications.
Seminar magazine (2003) detailed Reliance founder Dhirubhai Ambani’s proximity to politicians, his enmity with Bombay Dyeing’s Nusli Wadia, the exposes by the Indian Express and Arun Shourie about illegal imports by the company and overseas share transactions by shell companies, and the botched attempt to acquire Larsen & Toubro.
As early as 1996, Outlook magazine addressed other controversies related to fake and switched shares; insider trading; and a nexus with the state-owned Unit Trust of India. Five main allegations concerning Reliance, and which have plunged the Indian capital markets into a period of uncertainty unsurpassed since the days of the securities scam were (1) Reliance issued fake shares (2) It switched shares sent for transfer by buyers to make illegal profits (3) It has indulged in insider trading in shares (4) It established a nexus with the Unit Trust of India to raise huge sums of money to the detriment of UTI subscribers (5) It attempted to monopolise the private telecom services market through front companies.
Stock market regulator Securities and Exchange Board of India (Sebi) issued a show-cause notice to Reliance Industries Ltd following a probe into alleged insider trading in Reliance Petroleum Ltd (RPL) shares in November 2007. Sebi probed transactions by entities that participated in and led to some three months of speculative rally after which the RPL stock surged to an all-time intraday high of Rs295 on 1 November 2007. In a separate and independent investigation related to the same issue, the income-tax (I-T) department looked at possible tax evasion by a dozen entities that Mukesh Ambani-owned RIL acknowledged to be its “agents”.
In Jan 2011, Sebi barred Anil Ambani and four other officials of Reliance Group—until recently known as the Reliance-Anil Dhirubhai Ambani Group (R-Adag)—companies from investing in listed shares until December 2011. Two group firms, Reliance Infrastructure Ltd (R-Infra) and Reliance Natural Resources Ltd (RNRL) were barred from making such investment until December 2012. According to Sebi’s investigations, R-Infra and RNRL were prima facie responsible for misrepresenting the nature of investments in yield management certificates/deposits, and the profits and losses in their annual reports for the fiscal years 2007, 2008 and 2009. It also found misuse of FII regulations. The then minister of state for finance Namo Narain Meena, on 1 December 2009, in a written response to a query raised in the Upper House of Parliament, said that three firms of R-Adag—R-Infra, RNRL and RCom—had violated overseas debt norms. These end-use violations were observed by the Reserve Bank of India (RBI) regarding two ECB transactions—of $360 million and $150 million—by R-Infra.
In another case, Sebi, settled a dispute with Reliance Securities Ltd (RSL) with a consent order on June 2011, under which the brokerage will spend Rs1 crore within six months on investor education and not add any new clients for 45 days starting 15 June. In the settlement, it was also added that the brokerage will also pay Rs25 lakh towards settlement charges. This order followed a Sebi investigation into RSL’s books and accounts for fiscal 2007 and fiscal 2008, which said that it had allegedly violated various clauses of Sebi stock brokers and sub-brokers regulations. The Sebi inquiry cited 20 irregularities, including the brokerage not informing clients about various charges at the time of opening accounts. RSL sought power of attorney in the name of Reliance Commodities Ltd from clients and used this to debit clients’ bank accounts, purchase and sell post office deposits and government of India bonds among other transactions. Brokerage, not fully equipped to handle its customer base at the time, used the name Reliance Money at all its offices and on employee visiting cards, instead of Reliance Securities, which was the registered trading member, leading to confusion. Brokerage was found to have received funds from other client bank accounts other than the ones available to it, thus failing to have a sound third-party check on the receipt of payments. RSL had failed to update client details despite the stock exchanges pointing this out in their inspection reports. The Sebi inquiry also said RSL collected higher securities transaction tax from its clients in 2006-2008, allotted more than one terminal in the same segment for a single user, and also collected cheques in the name of Reliance Money. Brokerage also did not maintain clear segregation between broking and other activities of group companies. Further, there were frequent disruptions in the brokerage’s trading platform, which showed connectivity problems at the applicant’s end.
Reliance Telecom was charged with criminal conspiracy to cause criminal breach of trust by a public servant, criminal conspiracy under section 120-B, cheating under section 420 and forgery under sections 468 and 471. Reliance Telecom was booked under the Prevention of Corruption Act, 1988. Resulting in to arrest of Reliance Group’s corporate executives Gautam Doshi, Surendra Pipara and Hari Nayar.
The Central Bureau of Investigation (CBI) filed a chargesheet in a Mumbai court against Reliance Industries Limited (RIL) and four retired employees of National Insurance Company Limited (NICL), including a former CMD, under provisions of the Prevention of Corruption Act for criminal conspiracy and other charges. Acting on a reference from CVC in March, 2005, the CBI started probing the conspiracy that led to the filing of the chargesheet on December 9, 2011. The 2005 complaint had alleged irregularities in issuance of insurance policies — for coverage of default payments — by NICL to RIL. Chargesheet also mentioned criminal offences with dishonest intention and causing wrongful loss totaling Rs 147.41 crore to NICL and wrongful gain to the private telecom provider.
Two retired senior officials of National Insurance Company Limited and 11 others were awarded varying jail terms by a Delhi court in Jan 2014.
RIL Plane grounded
A business jet owned by Reliance Industries (RIL) was grounded by The Directorate General of Civil Aviation (DGCA) on 22 March 2014 during a surprise inspection, for carrying expired safety equipment on board; its pilot was also suspended for flying without a licence.
In May 2014, ONGC moved to Delhi High Court accusing RIL of pilferage of 18 billion cubic metres from its gas-producing block in the Krishna Godavari basin. Subsequently, the two companies agreed to form an independent expert panel to probe any pilferage.
Krishna Godavari (KG) Basin gas
The Reliance Industries Limited (RIL) was supposed to relinquish 25% of the total area outside the discoveries in 2004 and 2005, as per the Production Sharing Contract (PSC). However, the entire block was declared as a discovery area and RIL was allowed to retain it. In 2011, the Comptroller and Auditor General of India (CAG) criticized the Oil Ministry for this decision. The CAG also faulted RIL for limiting the competition in contracts, stating that RIL awarded a $1.1 billion contract to Aker on a single-bid basis.
Petition against Reliance Jio
A PIL filed in the Supreme Court by an NGO Centre for Public Interest Litigation, through Prashant Bhushan, challenged the grant of pan-India licence to RJIL by the Government of India. The PIL alleged that RJIL was allowed to provide voice telephony along with its 4G data service, by paying an additional fees of just INR16580 million (US$280 million) which was arbitrary and unreasonable, and contributed to a loss of INR228420 million (US$3.8 billion) to the exchequer.
The CAG in its draft report alleged rigging of the auction mechanism, whereby an unknown ISP, Infotel Broadband Services Pvt Ltd, acquired the spectrum by bidding 5000 times its net worth, after which the company was sold to Reliance Industries.
Editorial : Match Fixing / Judgement Fixing by JUDGEs & Police
Read following actual cases at the below mentioned web sites , see how shamelessly some of our police & Judges compromise their official positions. It is high time to kick out such corrupt police & Judges from office. The Honest few left in Police & Judicial service must get hold of their corrupt colleagues.
Jai8 Hind. Vande Mataram.
Match Fixing by Judges & Police :
CJI a Criminal
Half of former CJIs Corrupt :
SEX Crimes by Judges :
A – Z of Manipulation of Indian Legal System
3rd degree Torture by Doctors & Police
Judges helping Criminals
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