Aditya Birla Nuvo’s unit buys US-based Bureau of Collection Recovery

Aditya Birla Nuvo Ltd said its business solutions unit Aditya Birla Minacs bought US-based accounts receivables management company Bureau of Collections Recovery (BCR) for an undisclosed sum.

With this acquisition, Minacs' clients will now have access to BCR's team of collection experts and its experienced top management, it said in a regulatory filing.

On Wednesday, Aditya Birla Nuvo's shares ended 0.4% up at Rs713 on the Bombay Stock Exchange, while the benchmark Sensex closed 1% up at 16,741 points.

User

Take Solutions partners with Reliance Life customised IT solutions

Take Solutions Ltd has entered a strategic partnership with Reliance Life Sciences to supply its PharmaReady eCTD, SPL and PPM modules. No financial details were provided.

With its strong background and industry knowledge, Take's warehousing and clinical systems development and integration tools will deliver a full spectrum of information management services, leveraging on industry data standards to streamline the clinical information lifecycle, the company said in a statement.
On Wednesday, Take Solutions shares ended 6.1% up at Rs27 on the Bombay Stock Exchange, while the benchmark Sensex closed 1% up at 16,741 points.

User

Global Trust Bank: A breach of public trust

Many years since the stock market scam, a fresh probe has been ordered into the management of the infamous Global Trust Bank. Why now, and who all are likely to come under the scanner?

After all these years, the government has ordered a probe into the alleged involvement of Global Trust Bank’s management in the stock market scam of 2001. It has tasked the Serious Frauds Investigations Office (SFIO), an arm of the corporate affairs ministry, to look into the charges of funds diversion and accounts manipulation by the bank, supposed to have been deeply involved in aiding Ketan Parekh’s financial racketeering.

But why has the corporate affairs ministry suddenly ordered a fresh probe into the matter? It has been almost nine years since the Ketan Parekh led stock bubble ended in an inevitable collapse that sank two banks—GTB and Madhavpura Mercantile Co-operative Bank.

With regard to investigations against GTB, after spending countless hours and tonnes of public money, the Joint Parliamentary Committee (JPC) report unceremoniously dumped all matters related to it. Its 14th Progress Report on the matter concluded (on June 2009), “Investigations in this case have been completed. In all, 6 SCNs (show cause notices) had been issued to M/s Global Trust Bank and others. On conclusion of adjudication proceedings, charges against M/s Global Trust Bank in all the 6 SCNs have been dropped and the case stands closed. Hence, action against this company may be treated as complete.”

A scrutiny of the capital market exposure of GTB conducted by the central bank, Reserve Bank of India (RBI) during March 2001 revealed that its exposure was quite high and even violated the ceilings set up by the bank’s board for such exposure. The bank had also misled the board while reporting its exposure to the capital market by reckoning non-funded exposures to enlarge the quantum of the bank’s advances and to give the impression that such exposure was within the board’s prescribed limit at 20% of total advances.

Now that the issue has been raked up again, will the outcome be any different? It is not known who all would be the subject of scrutiny by the SFIO as a part of the probe. The SFIO is not willing to divulge too much about the matter. An official from SFIO confirmed that the management of the Global Trust Bank would be central to the investigation, but refused to divulge more details. “This matter came to us only yesterday (Monday, 1st June). It is too early to say anything about the matter. We cannot discuss about the nature of the investigation while it is still underway,” the official remarked.

It is entirely possible that the erstwhile chairman and managing director of GTB, Ramesh Gelli, would come under the scanner of the SFIO. The probe is also likely to delve into the manipulation of the bank’s books and the possible involvement of the board of directors, auditors and other bank officers in the fraud.

The JPC, constituted to bring the accused to book has mostly turned out to be a toothless tiger. Several big names in the industry have gotten away free, with barely a scratch to show. The Zee Group was one such big entity that got away with a mere warning from the Securities and Exchange Board of India’s whole-time member, TC Nair, for its role in the Ketan Parekh scam, despite copious evidence of its extraordinary fund transfers through accounts in GTB. It is believed that the Zee Group was willing to cough up Rs5 crore under a consent agreement with SEBI, but was only too happy to get only a rap on its knuckles from SEBI.

The new probe is expected to take at least six months to be done with, according to the SFIO official. It will depend on whether the SFIO can get the right documents at its disposal and the right people to speak to.

User

COMMENTS

nyroot

6 years ago

Interesting thing is that some of these so called top management *crooks* are professors at most prestigous managements schools. One of the GTB's board member (who was also on Satyam's board) is a professor at Harvard and an other Executive VP is a professor at IIM-Bangalore. I just don't understand what these people teach to future top management executives. Are our schools teaching how to take advantage of common people?

REPLY

Kolluru

In Reply to nyroot 6 years ago

The financial Markets are Higly volatile, the UPS and Downs are common. Pvt. Banks were started to make Profits. Gelli is a genius at Vysya, but failed to do the same. Because of the Market and for not following Complaince. I Do not think we started the Bank to CLOSE disgracely. Some think went wrong in Planning. Govt should giv freedom, for rectifing himself. He is PADMASREE. We should remember. The Market has become like Cricket" We praise Sachin on 100 and do the VICE VERSA.

Mannu

7 years ago

Interesting to note that Mr Ramesh Gelli is a member of the Governin Coucil of AIMA. His name is listed as Chairman of Swarnim Multi Ventures Ltd

K Narayanan

7 years ago

It clearly indicates that if you have political connections and money power you can get away.In spite of selling away the bank and making it bankrupt the mgt got away without any punishment.While depositors benefited by merger of the bank with OBC the rogue borrowers got away along with Ketan Parikh,Zee etc.Many people are taking of the efficiency of pvt sector.The govt instead of bailing them out should have asked the depositors to collect the deposit insurance money-maximum Rs 1 lac.Then they would understand what the pvt sector efficiency means.In our country as things stand today the pvt players if they start a bank can loot the bank and get away without any punishment.Unless you have a system of swiftly punishing such looters within a year or two there is no point in leaving banking in pvt sectors.No doubt public sector employees are arrogant and careless chaps -many of them-but you have only a choice of devil or deep sea.In public sector at least your money is safe -forget the interference of politicians in the santion of loans-In pvt sector the mgt decides whom to dole out the loan such as this GTB case.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)