2G scam: Hearing on bail pleas of Kanimozhi & others deferred

Deferring their bail pleas, special CBI judge OP Saini said he wanted to complete the process of framing of charges by 15th October after which the bail applications would be taken up

New Delhi: A Delhi court on Saturday deferred the arguments on the bail applications of DMK MP Kanimozhi and Kalaignar TV MD Sharad Kumar, accused in the 2G spectrum case, on their plea that they may be heard after the judge frames charges in the case, reports PTI.

Special Central Bureau of Investigation (CBI) judge OP Saini agreed to their plea and said the arguments on their bail applications can be heard on 17th October as it may frame charges against the accused by that time.

"I want to complete the process of framing of charges in the case by 15th October. Fix the bail pleas of these two (Ms Kanimozhi and Sharad Kumar) for 17th October," the judge said.

Senior advocates Sushil Kumar and Altaf Ahmed, appearing for Ms Kanimozhi and Sharad Kumar, apprised the judge that they are bound to obey the order of the apex court which, while dismissing their bail pleas on 20th June, had said that such applications could be taken up only after charges are framed in the case.

"The order of the Supreme Court was made on the bail pleas of Ms Kanimozhi and Sharad Kumar and we are bound to obey it," senior counsel Mr Ahmed said.

The court also deferred the arguments on the bail pleas of five other accused by 3rd October.

The court fixed for 3rd October the bail pleas of A Raja's former private secretary RK Chandolia, Swan Telecom promoter Shahid Usman Balwa, directors of Kusegaon Fruits and Vegetables Asif Balwa and Rajiv Agarwal and director of Cineyug Films Karim Morani.
Counsel for Shahid Balwa and others pressed that the bail plea of their clients should be heard on Monday, saying the apex court had passed that order on the bail pleas of Ms Kanimozhi and Sharad Kumar and not on their clients' applications.

Counsels Sushil Kumar and Aftab Ahmed said the court may hear on Monday the bail pleas of five other accused.

"You (court) can segregate us from them (other accused) and can take their bail pleas on Monday. We will argue on Ms Kanimozhi and Sharad Kumar's bail on 17th October," the defence counsel said.

The CBI, however, on Friday had opposed the bail pleas of the seven accused in the case on the ground that as per the Supreme Court order, their bail pleas could be entertained only after the framing of charges.

The daughter of DMK chief M Karunanidhi is lodged in Tihar Jail since 20th May for her alleged role in the 2G scam.

Ms Kanimozhi along with Sharad Kumar had moved court for bail for the second time on 16th September.

Opposing the plea of Ms Kanimozhi, the agency in its reply had said that she was the 'active brain' behind the operations of Kalaignar TV in which she also held a 20% stake.

Initially, she was also a director of the channel and had a role in're-appointment' of A Raja as telecom minister.

"Ms Kanimozhi was a stakeholder of Kalaignar TV Pvt Ltd to the tune of 20% equity and was an active brain behind its operations. She was also widely covered by Kalaignar Seithigal (News) Channel," CBI said.

CBI, which opposed the plea of six others, however, said the "court may take an appropriate view as per law" while considering the health condition of Karim Morani.


Bulls defend 4,720 but fail to take out 5,169 points, which means uncertainty continues

The bulls have to defend the recent low of 4,720 points to keep their hopes alive. On the other hand, only a crossing of the recent high of 5,169 points will indicate that there is still some steam left in the current rise for the months ahead

S&P Nifty close: 4,943.25

Market trend
SHORT term: Down        MEDIUM term: Down        LONG term: Sideways

The Nifty opened a tad lower and dipped on the first day of the week, and contrary to general consensus, ended the F&O settlement enquiry on a firm note. During the week, the Nifty hit a high of 5,034 points (R1 was 5,080 points) after recovering sharply from a low of 4,758 points (S1 was 4,742 points), but still fell miserably short of coming near the last few weeks' top of 5,169 points. Volatility was high during the week (which was a bit surprising considering that the volatility of the previous 3 weeks was also high) and the failure to take out 5,169 points leaves the situation fluid. The only promising aspect of last week was the Nifty surviving the recent low of 4,720 points. Volumes were flat as the Nifty closed 76 points (+1.55%) in the green. The sectoral indices which outperformed were BSE IT (+5.81%), BSE Teck (+4.32%), BSE Oil & Gas (+2.80%), BSE Realty (+2.29%) and BSE FCMG (+2.06%) while the ones which underperformed were BSE Metal (-4.50%), BSE CDS (-4.32%) and BSE CGS (-3.77%).  

The Histogram MACD continues to be below the median line implying that the medium term trend is firmly down and what we are witnessing is a corrective rise. As mentioned above, the positive from last week was the Nifty surviving above the recent low of 4,720 points-and the negative was it was not able to cross the recent high of 5,169 points, which is imperative for further strength.

Here are some key levels to watch out for this week:

  • As long as the S&P Nifty stays above 4,912 points (pivot) the bears will be under pressure.
  • Support levels in declines are pegged at 4,790 and 4,636 points.
  • Resistance levels on the upside are pegged at 5,167 and 5,294 points.

Some Observations
The bulls did survive a scare last week as they defended the 4,720 points level, ably.
1.    Resistance in any further rise will be provided by the "gap area" between 5,229-5,323 points.
2.    Only a close of the above mentioned "gap area" could lead the foundation of a retracement of the entire fall from 6,338-4,720 points, though no confirmation is available as yet despite the last few weeks of recovery.
3.    If the Nifty fails to hold the recent low of 4,720 points, there will be doubts about the strength of this recovery and the distance it could go.
4.    The Nifty not being able to cross the recent high of 5,169 points will signal that the upside in the market is capped in the 5,350-5,500 range in this corrective rise.
5.    The upside "gap" between 4,879-4,905 points is to be watched closely, as this is the immediate support area. If this is not closed, then it will indicate the earliest sign of the bulls becoming a little stronger.

The bulls have to defend the recent low of 4,720 points to keep their hopes alive. On the other hand, only a crossing of the recent high of 5,169 points will indicate that there is still some steam left in the current rise in the months ahead, while a breach of 4,720 points would make the situation very fluid and will indicate that the upside in the months ahead will be capped in the 5,350-5,500 range. We have seen the bulls survive a scare last week and they have to continue to defend resolutely in the weeks ahead if they have to take the market higher. It's advisable to play stock- and sector-specific moves till the Nifty moves out of this range.

(Vidur Pendharkar works as a Consultant Technical Analyst & Chief Strategist, www.trend4casting.com).


Microfinance industry: Genesis of current crisis, lessons learnt, challenges and prospects

Ramesh Arunachalam, Development Practitioner, held an exclusive session at the Moneylife Knowledge Centre on the issues facing the Indian microfinance industry and the steps that can be taken to put the industry back on track

Has the Indian microfinance industry lost its track? Is the industry at the peril of being usurped by usurious interests? What are the prospects and challenges facing this sector? Ramesh Arunachalam, Development Practitioner, spoke on all these issues at an exclusive seminar held by Moneylife Foundation at the Moneylife Knowledge Centre on 1st October.

Mr Arunachalam is unarguably the most authoritative voice on Indian microfinance.  He has over two decades of strong grass-roots and institutional experience in rural finance, MSME development, agriculture & rural livelihood systems, rural & urban development and urban poverty-alleviation across Asia, Africa, North America and Europe.

The comprehensive seminar touched upon all aspects of the microfinance industry, like the crisis in Andhra Pradesh, the challenges impacting the growth of this sector, financial inclusion and policy-level challenges. Mr Arunachalam also charted a roadmap for the industry-he elaborated on key issues that went much beyond the current crisis and spoke on the need to re-engineer the complete financial inclusion paradigm.

As usual, it was a packed session, enriched by the key takeaways that Mr Arunachalam provided.   

Mr Arunachalam has worked with national and state governments, multilateral agencies, bilateral donors, regulators and supervisors including central banks and ministries, commercial banks, and MFIs, NGOs, the private sector and other stakeholders.


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