Andhra Pradesh-based Dr VS Prasanna Rajan is seeking a detailed reply from the President Secretariat on the defence land that is being used for building a bungalow for Pratibha Patil to occupy post retirement
Andhra Pradesh-based Dr VS Prasanna Rajan has sent a notice under section 80 of the Code of Civil Procedure, 1908 to the secretary of President Pratibha Patil seeking detailed report or explanation on a story published by Moneylife (Ref ). President Pratibha Patil grabs 2,61,000 sq ft of land meant for soldiers and officers
Here is what Dr Rajan has sought within two months from the President Secretariat...
a) A detailed report, explanation containing the progress made by the concerned official(s) to bring to cognizance of the report vide Ref  in the media exposing the instance land grabbing by the current President of India, in utter violation of statutory rules and regulations.
b) A detailed report, explanation containing the initiatives taken by the concerned official(s) to appraise the current Honourable President, the relevant legal provisions and Supreme court judgments against grabbing excess land resource in violation of the relevant rules, regulations in force, for the same, so that corrective actions can be undertaken by the current Honourable President, to settle the controversy reported vide Ref , and to avoid unwarranted, avoidable court procedures, whereby the image, prestige, honour, credibility of Her Excellency, is enhanced before the citizens of India.
c) A detailed report and explanation on the designations of the officials in the secretariat and, or in the relevant departments under the Government of India/state government who were directly and indirectly instrumental for the controversy reported vide Ref  and the details on the prosecution so launched on the concerned officials for the same be provided.
d) A detailed report/explanation in the liability on the part of the current Honourable President of India for the unwarranted/unjustified infraction of the privileges, benefits due to the deserving employees of the ministry of defence, due to the incident reported by the media vide Ref .
e) A detailed report/explanation with regard to the corrective measures so undertaken by the current Honourable President of India, in order to avoid unwarranted, avoidable court procedures, thereby settling the controversy reported by the media vide Ref .
f) If no corrective measures are undertaken by the current Honourable President in light of the report in the media vide Ref , then a detailed report, explanation for the same, justified by cogent reasons backed by relevant provisions of the acts, rules, regulations, procedures in force.
g) If no such progress is made in any of the aforesaid queries, if no explanation, report is available for some, all, part of the queries in this notice, if it is decided officially not to act on this notice, then a detailed explanation, report, supported by cogent reasons for the same.
As per a judgement by the Supreme Court, public authorities and officers must be given a notice under section 80 of Civil Procedure Code, 1908 before moving courts against them.
The stock of Vikas WSP which is up 291%, since 1 January 2012, is suspicious and needs to be investigated. But possibly it has not even registered in SEBI’s vaunted surveillance system
Vikas WSP, a guar gum powder manufacturer, which had been indicted and censured in the past for several irregularities including window dressing, failing to address investor complaints and failure to pay dividends, has been constantly hitting the upper circuit several times and the stock is up 311% since 1 January 2012, from Rs18.05 to Rs70.60 . Apparently, it seems that its promoter—Bajrang Dass Aggarwal—has been buying shares from the open market. According to the filing in Bombay Stock Exchange (BSE), it said, “Vikas WSP Ltd has informed BSE that in the meeting of the board of directors of the company held on 10 April 2012, BD Aggarwal, one of the promoter of the company informed to the board that he will increase promoters holding more than 20% as soon as possible which is as on date 17.50%.”
This isn’t the first time the “bull-run” the company has seen. The current spurt in price is reminiscent of the one that happened in 2000, when the company went from Rs367 all the way up to Rs1,151, a whopping 219% move in a matter of 17 days before tanking 57% to Rs490 in the next 19 days.
Vikas WSP has had a history of shady practices in the past. It was delisted for suspected malpractices. An Economic Times article that appeared in 2000 exposed window-dressing practices in the form of abnormally high margins and wrong export turnover of Rs233 crore. In the light of this finding, the government vide petition - CP No. 51/2003 under Section 397/398 read with Section 408 of the Companies Act against the company—sought to install three central government directors on the company’s board. Judge KC Ganjwal accepted the plea and remarked; “the company has filed disputing figures of production with different agencies. Undoubtedly, the affairs of the company are not transparent and doubts have been created in the minds of shareholders and public at large. In order to effectively safeguard the interest of the company as also of shareholders and the public at large, I accept the plea of the central government that some check and transparency needs to be restored in the board of directors. Accordingly, I allow the second Company Petition NO.51/2003 filed under Sections 397/398 and 408 of the Companies Act, 1956 and direct the central government to appoint not more than three directors on the board of directors of the respondent company for a maximum period of three years from the date they assume office.”
What is more pertinent is that, according to their December 2011 BSE filing, the promoters have encumbered all of their shareholding. More interestingly, Goldman Sachs has a stake in the company vis-a-vis its Mauritius Special Purpose Vehicle (SPV), bought back in 2010. According to BSE, Goldman Sachs Investments (Mauritius) I Ltd holds 5,739,400 shares, or 4.18% of the company. It is quite likely that Goldman is merely acting as a front for someone, possibly a market manipulator. The Securities and Exchange Board of India (SEBI) is not interested in piercing through the details of the FII sub-accounts.
It has been 12 years since the Economic Times expose and the first “bull-run”. The regulators had taken action against the company by delisting it. However, the company got relisted in 2007. It is interesting to note that the announcement by the promoter to buy shares from the open market comes when NCDEX had barred guar seed and guar gum futures from the markets. Apparently, even guar prices had shot up sharply, prompting NCDEX officials to take note and shut it down.
NCDEX vide circular NCDEX/TRADING-030/2012/101, cited; “Trading and clearing members are hereby informed that in terms of the Bye-laws, Rules and Regulations of the Exchange and as approved by the Forward Markets Commission (FMC), no fresh positions (including intra-day) will be allowed in respect of Guar Gum (GARGUMJDR) and Guar Seed (GARSEDJDR) April 2012, May 2012, June 2012 and July 2012 expiry contracts from 22 March 2012 till the expiry of these contracts. Only squaring off of existing positions will be allowed.”
Currently, the stock is sharply down 11% from the 52-week high of Rs76.20 yesterday (12 April 2012). The company has been trending up in 18 of the last 24 trading sessions, and has been up in 48 of the last 70 trading sessions. What is interesting is that the share price dipped sharply, sometimes hitting the lower circuit, after trending up for a while. This seems to be the pattern when we analysed the prices since 1 January 2012.
Is the company up to something that the public and shareholders do not know? The share price movement alone should raise a warning signal for regulators to find out and investigate. But don’t expect the expensive inter-market surveillance system of SEBI to unearth anything.
The Chief Statistician had attributed the sharp downward revision in IIP data to incorrect reporting on sugar production by the Directorate of Sugar in the Ministry of Consumer Affairs, Food and Public Distribution
New Delhi: Terming sharp revision in the industrial production data as "totally baffling", Finance Minister Pranab Mukherjee on Friday said he has asked the authorities concerned to look into the issue, reports PTI.
"I can understand if there is error in calculating 0.1% of 0.2%, but from 6.8% to 1.1%, it is totally baffling," Mr Mukherjee told reporters here, commenting on the sharp revision of the IIP growth rate for January from 6.8% to 1.1%.
He further said: "We shall have to ensure that government data, their integrity should not be challenged...I have asked concerned authorities to look into it that why it has taken place and they should be much more careful in the future".
The Ministry of Statistics and Programme Implementation (MOSPI) yesterday revised the Index of Industrial Production (IIP) for January from 6.8% to 1.14% because of wrong calculation of sugar production during the month.
Chief Statistician TCA Anant had attributed the sharp downward revision in IIP data to incorrect reporting on sugar production by the Directorate of Sugar in the Ministry of Consumer Affairs, Food and Public Distribution.
According to Mr Anant, "Subsequent to the release (of IIP data for January 2012), it has been detected ... that the sugar production was wrongly taken as 134.08 lakh tonnes in place of actual figure of 58.09 lakh tonnes".
He had said that due to this change and minor update of data received from other source agencies, the IIP for January 2012 has been revised from 187.9 to 177.9.
Also, Mr Anant said, the cumulative index for the period April-January (2011-12) was revised from 4% to 3.4%.