Companies & Sectors
4G telecom service to rake in Rs 79,580 crore
With unfolding competition in the mobile data market, 4G connections are likely to account for 17% of the total user base by 2020 with revenues in the range of Rs79,580 crore, an Assocham-KPMG report said on Wednesday.
 
According to the report, the entire business mix of the telecom industry is going to witness a sea change and the introduction of 4G on large scale by one of the largest corporate houses is going to be a major development.
 
"4G is expected to significantly transform the revenue mix of service providers with estimated Long Term Evolution (LTE) revenues expected to reach Rs79,580 crore in the next few years," a statement said.
 
The report said the demand for high speed internet services would receive a further push from key governmental initiatives such as 'Digital India' and 'Smart Cities'. Besides mobile networks have been identified as key tools for financial inclusion where 4G can facilitate implementation of government's social sector schemes in a faster and secure way.
 
The report further said handset manufacturers are up to with the growing market of current and future 4G users.
 
It said the telecom sector in India is at an inflexion point, where it is poised not only to ride a high growth trajectory but also to provide a strong impetus to the government's key development initiatives.
 
However, the report also sounded a word of caution. "While demand growth is expected to remain steady on the back of affordable smart phones, digital inclusion programs and 4G rollouts, high capital requirements and an extremely competitive scenario continue to affect the profitability of key players," the report said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Financial crimes & frauds: When and how to approach the EOW
"Greed is the main reason for people becoming victims of financial frauds or cheating. In fact, I was aghast to see people from all parts of the society falling prey to such schemes just because someone has promised them huge returns," says S Jayakumar, the Deputy Commissioner of Police in the Economic Offences Wing in Mumbai. He was speaking at the eighth session under the "Police & You" series.  
 
Moneylife Foundation with Police Reforms Watch and support from Saraswat Bank have launched the 12-week program (every Wednesday) that aims to spread knowledge about protecting yourself, your rights, the Indian Penal Code (IPC), cybercrime and economic offences. This was the eighth such session.
 
Mr Jayakumar, who has a commendable track record with postings at Malegaon as Assistant Commissioner of Police (ACP) after the bomb blast and Naxal-infested Gadchiroli as Superintendent of Police (SP) during the elections, says, "Irrespective of their reputation and achievements, people put their money into fraudulent schemes. I agree we are lagging behind in alerting people. However, since we have to deal with people from across the strata, it becomes difficult to reach out to everyone. But we are doing our best and would do more to create awareness about these financial scams".
 

The event was held in the well-appointed auditorium of Saraswat Bank headquarters, Eknath Thakur Bhavan. 
 
The eighth session of the 12-week series on "The Police & You- Economic Offences: When to approach the EOW" was conducted by Mr Jayakumar and Mahesh Aathavale, a former officer from Mumbai Police.
 
The former police officer shared details of action taken or being taken on MLM companies, like QNet across the globe. He told the audience, how in 2002 the Australian government named QNet, GoldQuest and QuestNet as pyramid schemes. Similar action was taken by the governments of Nepal, Sri Lanka, Iran, Rwanda, Sudan, Syria, and Turkey. 
 
"In 2010 the Saudi Arabian Ministry of Commerce and Industry banned QNet, accusing the company of theft, falsification, and failure to register, and warned citizens to avoid involvement in fraudulent schemes, mentioning QNet specifically. In 2012, the Dar Al-Iftaa issued a Fatwa against QNet stating the MLM Company’s business in Egypt is haram (forbidden under Islamic law) and could harm the country's economy," Mr Aathavale informed the audience. 
 
He also informed about several action taken by enforcement agencies, like the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Mumbai Police and Delhi EOW against QNet. (Read: Noose Tightens around QNet after 12 Long Years)
 
 
Mr Aathavale then highlighted selling techniques used by such MLM and Ponzi schemes under the pretext of product sale. He said, "Many of the products sold by MLMs are virtual products. Even if the products are physical, there is no quality control by states on its production, there are no regulations followed and all the company or its agents or distributors sell is golden dream under the pretext of product."
 
He explained roles played by promoters, financiers, web designers, chartered accounts, leaders or agents and subscribers in establishing and promoting such schemes. 
 
Mr Aathavale, who was instrumental in probing Speak Asia, the online survey company that duped lakhs of people using the money circulation scheme, shared the modus operandi of the company and its promoters. 
 
"Speak Asia successfully enrolled 23 lakh panellists across the country in just 18 months and collected over Rs2,300 crore. There were doctors, engineers, bankers, police officers, lawyers vis-a-vis handcart puller, domestic help, and small shop owners were among the gullible investors or victims of this scheme. Panellists were portrayed as role model via aggressive marketing and advertising by the Company through their advertisements for earning extra income or for generating jobs for lakhs of people. When the scheme was subsequently closed, it had an assured payout of over Rs30,000 crore," he said.
 
Moneylife was the first publication to expose Speak Asia way back in 2010. On 8 October 2010, Moneylife exposed Speak Asia and its modus operandi. (Read: Another MLM scam in the happening, this time under the pretext of an online survey)
 
Mr Aathavale then touched upon various provisions under the law to act against MLM, Ponzi or money circulation scheme and its promoters and agents. He said Section 2 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (PCMCS Act) defines money circulation scheme in clear wordings. 
 
Sec 2 (c) "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions
 
He also explained section 3 and section 4 of the PCMCS Act that deals with banning of prize chit and money circulation schemes and penalty for contravening the provisions of the section. Mr Aathavale also highlighted Section 8 of the Act that allows forfeiture of newspaper and publication for helping in promoting such schemes. 
 
Section 8 of the PCMCS Act says, "Where any newspaper or other publication contains any material connected with any prize chit or money circulation scheme promoted or conducted in contravention of the provisions of this Act or any advertisement in relation thereto, the State Government may, by notification in the Official Gazette, declare every copy of the newspaper and every copy of the publication containing such material or the advertisement to be forfeited to the State Government."
 
 
 
Mr Aathavale also explained in details, the Maharashtra Protection of Interest of Depositors (MPID) Act, which takes care of the criminal aspect of MLM, Ponzi and money circulation schemes. Among important features of the MPID Act, there is a provision to convict every person responsible for the management of the establishment including the promoter, partner, director, manager or an employee of a company for fraudulent default by a financial establishment. Also, the government on a complaint or otherwise, can order the attachment of money or property of a financial establishment and appointment of a competent authority to control the same, he added.
 
"There are some frauds so well conducted that it would be stupidity not to be deceived by them," Mr Aathavale concluded.
 

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COMMENTS

Silloo Marker

6 months ago

The talk was by both speakers was very interesting and enlightening for ordinary citizens who could learn to avoid falling prey to dubious schemes. I was quite impressed by the level of competence that our police in the Economic Offences Wing who have brought to book some serious economic offenders. Thanks to Moneylife for organising these useful talks.

manoharlalsharma

6 months ago

Financial crimes & frauds: When and how to approach the EOW,/ we should wait till understand properly that what is crime,then to analyse properly and after we should file the case in general but by the time fraudster make money and fly so it is the duty of Government agencies to get all types of businesses be registered before going to public but in INDIA authorities wait till booking of complaint and if u pay ful attention to u r complain u have lose u r life in waiting of Judgement or justice some time it found that the authority make way to unlock criminals as guiding them.

atul gupta

6 months ago

Madras High Court in 2005 declared MLM as illegal business. Qnet previously known as Goldquest and Questnet have been declared fraudulent companies by SFIO and Parliament of India. Qnet founder Vijay Eswaran is an accused in fraud Goldquest case filed by Chennai police in 2008. MPID Act have been imposed on Qnet and Bombay High Court has declared it as nothing but money circulation as per PCMS Act. Enforcement Directorate has registered a case and Economic Offenses Wing Mumbai has arrested few leaders like Ram Singh of Qnet Infiniti group. Lookout circular issued against Infiniti leaders like Sachin Gupta, Kavita, Sharfun Shaikh, who have fled to places like Dubai. CERT has blocked Qnet websites under Court’s order. CB-CBI of Andhra Pradesh shut down Questnet and case is going on in court. Govt of Andhra Pradesh has passed order for attachment of properties of Questnet. Questnet MD Pushpam Appalanaidu has been arrested. Michael Ferriera of Team Faith and shareholder of Vihaan Direct Selling, a franchise of Qnet have been denied anticipatory bail by High Court. Maharashtra CM has assured enquiry into Qnet operations.

In India Qnet IR are duping and looting people on daily basis by using planned scripted way of showing their knowns and friends a business opportunity and chance to earn 5 crores in 5 years of project in partnership. They lure friends for investment from 3 lakh to 10 lakh to start business and after taking moneybuy products on online store of Qnet portal which are very expensive and useless products. Real purpose is not to sell products online but to induce new IR to indulge in chain business to trap more and more people for earning huge commissions through binary compensation plans. Even after cases going on Qnet in all over India still these agents are continuing this banned business of Qnet agressively.

Vaibhav Dhoka

6 months ago

What is diff. between functions of SFIO and EOW?Neesa Leisure Ltd FD nonpayment comes under which authority.

pawan gulati

6 months ago

Bबिल्डर्स झूठे प्रॉमिसेस करके कस्टमर्स को चीट करता हैं उसकी कंप्लेंट ed में कैसे करे। pl गाइड

pawan gulati

6 months ago

Bबिल्डर्स झूठे प्रॉमिसेस करके कस्टमर्स को चीट करता हैं उसकी कंप्लेंट ed में कैसे करे। pl गाइड

Nifty, Sensex still bullish – Wednesday closing report
We had mentioned in Tuesday’s closing report that Nifty, Sensex were in a strong upward momentum. The major indices of the Indian stock markets were range-bound on Wednesday and closed with small losses over Tuesday’s close. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
 
Profit booking subdued the Indian equity markets on Wednesday, as the key indices closed the day's trade on a flat note. Selling pressure was witnessed in consumer durables, oil and gas, and finance stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,404 advances and 1,356 declines. On the NSE, there were 801 advances, 807 declines and 68 unchanged.
State-run power equipment manufacturer Bharat Heavy Electricals (BHEL) on Wednesday reported a rise of 54.21% in its standalone net profit for the first quarter of 2016-17. The company's Q1 net profit stood at Rs77.77 crore from Rs50.43 crore reported in the corresponding quarter of 2015-16. The company posted a net profit after three consecutive quarters of losses. BHEL’s total income from operations for the quarter under review increased by 28.72% to Rs5,622.46 crore from Rs4,367.70 crore for the corresponding period of last fiscal. Its net sales edged up by 29.03% to Rs5,522.76 crore from Rs4,280.02 crore during the first quarter of 2015-16. According to the company, it has an outstanding order book position of Rs108,000 crore at the end of Q1 2016-17. The company’s shares closed at Rs159.80, up 15.50% on the BSE.
 
Global software major Wipro Ltd on Wednesday announced bagging a three-year IT contract from Norway's largest transportation firm NSB Group. "As part of the deal, we will implement NSB's boundary-less data centre and Live workspace solutions and utilise its next-generation delivery framework ServiceNXT to deliver services, which will help variablise their IT operations," said the city-based IT outsourcing major in a statement. The Oslo-based NSB operates rail and bus services and carries freight by rail and maintains trains. "As the proposed state reforms in the Norwegian railway are expected to provide a fillip to its efficiency, our backbone of IT infrastructure services will enable NSB to achieve greater flexibility, scalability, cost efficiency and offer an enhanced end-user experience," asserted the statement. The reforms will also help NSB become future-ready and competitive, in keeping with the spirit of the reforms. "Our partnership and engagement with NSB will have a positive impact on the Nordic transportation sector and the customer experience of its passengers," said Srini Pallia, Wipro's consumer business president. Wipro shares closed at Rs482.15, down 0.13% on the BSE.
 
The State Bank of India (SBI) may relocate some branches after the merger of its associate banks into its fold, but none of them will be shut down, Chairperson Arundhati Bhattacharya has said in a bid to put rumours to rest and assuage the staff. "I don't believe we will be closing down any branches. This is one area that is getting a lot of adverse publicity. We will be working with the synergies," Bhattacharya told IANS, referring to the plans to merge five associates and Bharatiya Mahila Bank. "Obviously, if the same building has branches of three associate banks, it doesn't make sense to keep them open. If that branch is moved away 60 km, it will have a better reach. We will be relocating a few of them," the Chairperson told IANS over the phone. The merged entity, which will have a network of more than 24,000 branches, will continue to have the same number of branches. The idea is to leverage the synergies, she added. "Not only the productivity can improve, with the same number of people, we can also ensure better footprints. We can move apart branches, send out sales teams. The customer will also have access to a lot of cutting-edge products," she said. The country's largest lender is looking to add $120 billion (Rs8 lakh crore) in assets after the merger of State Bank of Bikaner and Jaipur, State bank of Travancore, State Bank of Patiala, State Bank of Hyderabad and State Bank of Maharashtra, besides the Bharatiya Mahila Bank. SBI’s shares closed at Rs266.55, up 2.74% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
 
The closing values of the major Asian indices are given in the table below:
 

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