Citizens' Issues
2G scam: Anil Ambani, wife Tina among 13 summoned as witnesses

CBI, earlier in its chargesheet had alleged that Reliance Telecom structured Swan Telecom as its front company to circumvent the then existing telecom policy. This time, however, Anil Ambani, his wife and 11 others are summoned as witness by the CBI

Anil Ambani, chairman of Reliance Anil Dhirubhai Ambani (R-ADA) group, his wife Tina and 11 others were summoned as prosecution witnesses in the 2G spectrum allocation case by a special court in Delhi.


In its plea, the Central Bureau of Investigation (CBI) sought summoning of Ambani as witness in the case to ascertain Reliance ADA Group companies' alleged investment of over Rs990 crore in Swan Telecom Pvt Ltd.


CBI contended that Ambani will be able to “throw light” on issues of alleged investment by his group companies.


Special CBI Judge OP Saini said, “I find that examination of these witnesses is necessary for a just decision of the case and the application is allowed in total and all 13 are summoned.”


CBI had said Ambani and his wife had 'unrestricted powers' so far as cheque issuing authority is concerned and Tina Ambani had presided over the relevant meetings.


The CBI, in its first charge-sheet had alleged that top Reliance ADAG officials-Gautam Doshi, Hari Nair and Surendra Pipara-had conspired with former telecom minister A Raja and others.


Reliance Telecom (RTL) and its officials are accused of creating shell firms like Swan Telecom, Zebra Consultancy Services, Giraffe Consultancy Private Ltd and Parrot Consultants to create a web in which no company is a holding firm and the officials are the real masters, the CBI had alleged.


Ambani is required to be examined regarding the decisions on incorporation of the alleged shell companies, special public prosecutor UU Lalit had said, adding that although he may not have been a part of the decisions taken on these issues, he would have been aware about these matters.


Gitanjali Gems chief Mehul Choksi, Prime Securities among 26 barred from stock markets

SEBI as well bourses NSE, BSE and MCX-SX has decided to suspend 'unique client codes' of the 26 entities, including Gitanjali Gems' managing director and Prime Securities from trading for six months due to suspected market manipulation

Market regulator Securities and Exchange Board of India (SEBI) and bourses have barred Gitanjali Gems’ promoter Mehul Choksi and other 25 entities in relation with suspected market manipulation. This follows an investigation carried out by SEBI and National Stock Exchange (NSE) into the trading activities of Prime Broking Co (India) Ltd and trading in Gitanjali Gems by these entities.


In a similar circular issued late on Thursday, NSE, BSE and MCX-SX said, "Pursuant to the decision of SEBI and NSE which are investigating the trading activity of Prime Broking Company (India) Ltd and trading in Gitanjali Gems Ltd by set of clients, Unique Client Code (UCC) in respect of 26 entities/ persons are disabled from trading with immediate effect for a period of 6 months or till conclusion of investigation by NSE, whichever is earlier".


Here is the list of entities barred from the stock markets by SEBI and the bourses…


Name of the entity


Albers Diamonds Private Limited


Avtar Gems Private Limited


CLT Investments Pvt Ltd


CSA Holding Private Limited


Facet Electronic & Electrical Private Limited


Fender Mercantile Private Limited


Jaiwanti Mercantiles Pvt Limited


Jinal Infratech Private Limited


Jinal Mercantile Private Limited


Magnifique Gems Private Limited


Manoj Madhav Vankar


Mehul Choksi


Pinky Agro Foods Private Limited


Prime Research And Advisory Ltd


Prime Securities Ltd


Primesec Investments Limited


Rhoda Infrastructure Private Limited


Rishabh Technomarine Private Limited


Sadhiv Mercantile Private Limited


Sancheti Properties Private Limited


Sarvin Mercantile Pvt Ltd


Shraddha Garments Private Limited


Sneaking Infrastructure Private Limited


Somerset Infrastructure Private Limited


Trusha Infrastructure Pvt Ltd


Vankars Gems & Jewelleries  Private Limited



All these 26 entities are suspected to be linked to Prime Broking. As of March 2013, Mehul Choksi, managing director of Gitanjali Gems held 51.62% stake, while Prome Broking had 1.85% stake in the company. Life Insurance Corporation of India (LIC) and Bennett Coleman and Company Ltd, the publisher of Times of India hold 4.36% and 1.73% stake, respectively in Gitanjali Gems.


While the investigations are continuing, the stock exchanges - including NSE, BSE and MCX-SX - decided to suspend 'unique client codes' of the 26 entities from trading for a period of six months, or till the conclusion of the probe, whichever is earlier, they said in similar circulars.


Shares of Gitanjali Gems closed Thursday 4.7% down at Rs109.85. The share has been continuously falling over the last month, locked in lower circuit on most days. It has fallen 75% from Rs550 on June 18th to Rs109.85 yesterday.




4 years ago

There are several other stocks & entities involved in this blatant white collar crime . how to stop this ??

Ramesh Poapt

4 years ago

Equity investment is, sometime, about 'wealth management'-but 'disaster management'!

When Detroit, the world's traditional auto capital, files for bankruptcy

Detroit's bankruptcy, the largest municipal bankruptcy filing in the US followed a declaration of financial emergency in March 2013. New York Times call Detroit as 'home to 700,000 people, as well as to tens of thousands of abandoned buildings, vacant lots and unlit streets'

Detroit city, better known as the world's traditional automotive centre, has become the largest city ever in the US to move for bankruptcy, with a liability running into $18 billion.


Detroit, which at one time had a population of about two million, has now reduced to just 70,000. However, the city's debt and unfunded liabilities has grown to over $18 billion. Detroit does not have the revenues to meet those obligations and provide an adequate level of services to its people, who pay the highest taxes per capita in Michigan.


In a video message posted on a website, Michigan Governor Rick Snyder said, “Today I authorised Detroit’s emergency manager to seek federal bankruptcy protection for the City of Detroit. This is a difficult, painful step, and it is one I would not be authorising if I felt any other viable option remained”. 


In 2010, the city had a population of 713,777, more than a 60% drop down from a peak population of over 1.8 million at the 1950 census, indicating a serious and long-running decline of Detroit's economic strength.


“The fiscal realities confronting Detroit have been ignored for too long. I’m making this tough decision so the people of Detroit will have the basic services they deserve and so we can start to put Detroit on a solid financial footing that will allow it to grow and prosper in the future,” the Governor said.


The decision allowed Detroit Emergency Manager Kevyn Orr to make a filing under Chapter 9 of the Federal Bankruptcy Law.


Chapter 9 protects financially distressed municipalities from creditors while their debts are resolved under the direction of a bankruptcy judge.


The ongoing decline has left its mark on the city, most notably in severe urban decay and thousands of empty homes, apartment buildings, and commercial buildings around the city.


More than half of the owners of Detroit's 305,000 properties failed to pay their 2011 tax bills, exacerbating the city's financial crisis.


The resulting elevated unemployment was compounded by white flight and middle-class flight to the suburbs (and in some cases to other states), and the city was left with a reduced tax base, depressed property values, abandoned buildings, abandoned neighbourhoods, high crime rates, and a pronounced demographic imbalance.


The state governor declared a financial emergency in March 2013, appointing an emergency manager.


“Bankruptcy is the only feasible option to fix the city’s finances and do what is right for the 700,000 people of Detroit,” Snyder said.


A White House spokeswoman said, “the US President and members of the President’s senior team continue to closely monitor the situation in Detroit.”


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