According to Nomura, assembly elections in Maharashtra and Haryana would help BJP to consolidate its position in Rajya Sabha and underline the Modi wave. In case there is hung assembly, there would be re-elections, increased uncertainty and this will raise doubts about BJP’s ability to carry forward legislative reforms
Maharashtra and Haryana will go to the polls for their respective state legislative assemblies on Wednesday, 15th October with the results likely to be announced on 19th October. "If the opinion polls are correct, then the Bharatiya Janata Party (BJP) will need a coalition partner to form the government, which is marginally better for reforms like more seats in the Rajya Sabha and more BJP-ruled states, but there is much uncertainty, especially surrounding Maharashtra, says Nomura in a research note.
Nomura said, according to opinion polls, BJP, the incumbent party at the Centre is likely to get a plurality in both the states, but will fall short of an outright majority (Figure 1). Indian National Congress (INC), the incumbent party in both the states, is projected to lose.
According to Nomura, there are three reasons about BJP making a strong effort to fight and win elections in Maharashtra and Haryana. The party even roped in services of its 'star' campaigner Prime Minister Narendra Modi to gain mileage from its performance from the Lok Sabha elections due to the ‘Modi Wave’. BJP got a single party majority during the general elections.
Importance of the state elections
Consolidation of the BJP’s position in the Rajya Sabha (upper house): Any legislative reform needs to be passed by both the houses of parliament. While the BJP has an outright majority in the Lok Sabha (lower house), it does not in the Rajya Sabha (upper house), making it dependent on regional parties. Maharashtra and Haryana together account for 19 and 5 seats respectively in the Rajya Sabha, so a good performance by the BJP in these state elections will incrementally make legislative reforms less restrictive, although the BJP still will not have an outright majority in the Rajya Sabha (see below).
Prime Minister’s (PM) political capital at stake: In the run up to these state elections, the BJP has broken ties with its erstwhile partners – Shiv Sena in Maharashtra and HJC in Haryana. PM Modi has been campaigning across these states and the BJP is hoping to cash in on the ‘Modi wave’ seen during the national elections. Hence, the PM’s political capital is at stake.
Maharashtra is important for overall economic growth: It is the largest state in terms of share in national GDP (about 15% of total). Hence, economic performance in the state will have a national impact.
The best case in these state elections is for the BJP to get an outright majority, which will improve centre-state co-ordination and consolidate the BJP’s position in the Rajya Sabha, the research report said. "The worst case is a hung assembly, which would result in re-elections, increased uncertainty and raise doubts about the BJP’s ability to carry forward legislative reforms," it added.
The Bangalore Police are investigating Adooye.com, which was selling a ‘package' that promised money for watching online advertisements and enrolling new members, in a classic money circulation scheme. The MLM, which reportedly collected over Rs600 crore has quietly shut shop and left over two lakh registered customers in the lurch
Adooye.com, (ADooye) a supposedly US based website, that was selling 'packages' with a promise to pay for watching online advertisements and adding more members to the network, has gone burst, say media reports. Some victims, who 'invested' crores of rupees have filed a complaint against the multi-level marketing (MLM) company at Bengaluru.
In June 2014, Moneylife had warned about the risky 'business model' of ADooye similar to other strings of MLMs like Speak Asia, Fanbox, Empower Network, QNet and other pyramid and Ponzi schemes.
According to Times of India report, Kreetam Associates, the litigation firm fighting on behalf of the victims, had filed a first information report (FIR) against ADooye and Bangalore police are investigating the case. "The company stopped paying returns in August around the time it was changing the website layout. The site closed down early September and the company doesn't exist anymore and there is no one to contact," Vasanth Aditya, managing director of Kreetam Associates, told the newspaper.
Quoting Vasanth, the report says, ADooye.com has collected over Rs600 crore.
Moneylife investigated this company when a worried reader wrote to asking to look into their credentials. Their website states that ADooye is founded by Australian Mathew Reichgruber and Alessandro Sen, and marketed by Delhi based AD Marketing. This affiliated marketing company, which operates like an MLM sold various 'packages' containing online advertisements, on viewing which the member was rewarded.
Apart from this, ADooye earned more income from selling various expensive 'packages', which were nothing but login access to view 10 advertisements daily for 140 days, to its registered members. They have had a built network with the help of paid members who generate web traffic, when even for showcasing advertisement they charge money from its members.
Here are comments from some of our readers on earlier article...
"Dear Friends, before joining in Adooye I had lots of query and discussion with the Leader at Bhubaneswar, Odisha and finally I was agreed when received a PDC cheque and put Rs2.5 lakh. After received only Rs20,000 now it is vanished. For that I communicated with Local police, Cyber crime and also send information thru mail to our Prime minister Narendra Modi by describing the MLM. We need to raise our strong voice which will put impact to this type of ****ards."
"My friends have lost almost 4 lakhs rupees investing on Adooye. We are still waiting for the payment don’t know when will we receive the money back."
"Again a company arise to loot innocent people’s money. Beware friends do not get involved in this MLM company and waste your money. Do not become greedy and invest your hard earned money in any MLM Companies. They will show you dreams and take away your cash and vanishes like SpeakAsiaOnline, Qnet India and many more to name...........BEWARE. Remember My Words. Control your Greed. Don't Become a Pray."
"Once again Hat's Off to Moneylife for bringing into the open another MLM which will only milk the late comers to pay off the earlier members."
Moneylife has written several articles on frauds that lure people by floating various MLMs and frequently warned investors that “If it looks too good to be true, it usually is.”
Amid a public spat between him and the Tata group, Pendse was removed as Tata Finance chief way back in 2001 after a company subsidiary ran huge mark-to-market losses and the group also filed criminal charges against him
Market regulator Securities and Exchange Board of India (SEBI) has barred Dilip Pendse, former managing director of Tata Finance, from markets for executing illegal transactions in stocks of four companies including Infosys and Tata Motors, erstwhile Telco. This high-profile case dates back to over 12 years.
The latest order, which has been passed after years of probe and various directions issued by SEBI itself and the Securities Appellate Tribunal (SAT) in between, prohibits Pendse from accessing capital markets for two years.
In the present order, SEBI said that the period of prohibition already undergone by Pendse (imposed by an earlier order on 24 December 2012) would be taken into account while implementing the new directive.
Amid a public spat between him and the Tata group, Pendse was removed as Tata Finance chief way back in 2001 after a company subsidiary ran huge mark-to-market losses and the group also filed criminal charges against him. While Pendse refuted all charges, which included those related to fraud, he also had to spend time in jail.
SEBI has passed the latest order after SAT on 16 April 2014 quashed SEBI’s 24 December 2012 directive against Pendse and asked the regulator to pass a fresh order “on merits and in accordance with law as expeditiously as possible and in any event within a period of six months“.
SEBI said it began its probe after receipt of a complaint in October 2002 from Tata Finance about Pendse conducting “illegal carry forward transactions in the scrips of Himachal Futuristic Communications Ltd (HFCL), Tata Engineering and Locomotive Co Ltd-Telco (presently known as Tata Motors), Infosys and Software Solutions India Ltd (SSI).
These illegal transactions were conducted by Pendse in complicity with two brokers — Jhunjhunwala Stockbrokers Pvt Ltd and Pratik Stock Vision — and on behalf of Inshaallah Investments, in which a Tata Finance subsidiary (Niskalp Investment and Trading) had a vital interest, according to SEBI.
After investigating the case, SEBI issued a show-cause notice in April 2009 to Pendse, citing violations to its Prohibition of Fraudulent and Unfair Trade Practices Regulations. An order was passed by SEBI subsequently on 24 December 2012, which was challenged by Pendse before SAT.
Following SAT’s directions earlier this year, SEBI said, it gave an opportunity of personal hearing to Pendse and has passed the latest order after looking into all the facts of the case and submissions made before it.
SEBI ruled that Pendse has violated various provisions of the PFUTP Regulations and the Securities Contracts Regulation Act with his illegal transactions in scrips of HFCL, Telco, Infosys and SSI.