Regulations
Bhushan asks SIT to probe alleged Rs6,500 crore money laundering by RIL
Prashant Bhushan alleged that RIL, with the help of ICICI Bank, laundered and funnelled back into Reliance companies over Rs6,500 crore through Singapore-based Bio Metrix Marketing 

Aam Admi Party (AAP) leader Prashant Bhushan has complained to the Special Investigation Team (SIT) on black money to investigate and prosecute what he calls 'huge money laundering and siphoning of money involving India's largest business group, Reliance Industries Ltd (RIL) and private lender ICICI Bank.'
 
Bhushan, in a letter sent to ML Meena, member secretary of the SIT, said, "We all know that there have been two detailed CAG reports that RIL is involved in inflation of capital expenditure, over invoicing and siphoning of money from the KG Basin D6 Block. There is a clear suspicion that such amounts are being laundered and funnelled back into Reliance companies."
 
Our mails sent to RIL remain unanswered till writing the story. We would incorporate their response as and when we receive it.
 
Citing a letter reportedly sent by the Indian High Commission in Singapore on 31 August 2011, the AAP leader said, "The High Commission had stated that Rs6,530 crore have come into India from Bio Metrix Marketing Ltd, a one room company in Singapore that does not do any business. It was pointed out that this is a company with no assets, no equity and does not file an income tax returns in Singapore claiming to be a small company. Yet, this huge investment by this company, amounting to Rs6,530 crore is the single biggest foreign direct investment (FDI) into India from Singapore."
 
"The High Commission had stated that all this money has gone into Reliance group companies in India with the major chunk going to Reliance Gas Transportation Infrastructure Ltd, which is a company 100% owned by Mr Mukesh Ambani personally," Bhushan said in his letter.
 
According to Bhushan, the Commission had pointed out that one Atul Shanti Kumar Dayal effectively owned this company Bio Metrix. He alleged, "Mr Dayal is nothing but a front for Reliance, since he is a director in 32 Reliance group companies. Now it has come to light that this company Bio Metrix has closed down."
 
He further stated that "Reliance is laundering its ill-gotten profits from KG Basin through Singapore and depositing the same into accounts of Mr Mukesh Ambani."
 
Bhushan said, pursuant to his letter and press conference on 27th February, RIL issued a press statement. Quoting media reports, he said that Reliance stated, “These investments in the Indian companies were made by Biometrix out of loans raised from ICICI Bank, Singapore branch.” 
 
"The ICICI bank did not issue any denial to the press statement issued by Reliance," Bhushan said.
 
According to the AAP leader and lawyer, the statement issued by RIL raises more question than it answers. He said, "The ICICI Bank had given a loan of thousands of crore to a company with no equity, no assets and no business. What was the collateral or security taken by the ICICI Bank before issuing such a huge loan? What was the due diligence done by the ICICI Bank before issuing this loan? The bank does not give even a small loan to an ordinary person, even for purchasing a car or house without proper security and documentation. But who sanctioned the Rs6,530 crore loan to this company with no business? Has the loan been returned by Bio Metrix to ICICI Bank? Now this company Bio Metrix has closed down. So how will the bank recover this loan?"
 
Citing international conventions on money laundering, Bhushan said, the duty is put on the financial institutions to observe due diligence and transparency to prevent money laundering. "It is also the duty of the Government to investigate all such transactions. The question therefore arises, was  ICICI bank an accomplice in the money laundering operation carried out by Reliance? The Government of India has just sat over these facts for about three years. The Government has not bothered to investigate this case of money laundering perhaps because powerful entities like Reliance and ICICI Bank are involved," he alleged in the letter.
 
Bhushan mentioned in the letter that he had sent a letter on 23rd July to Prime Minister Narendra Modi with a copy to Justice MB Shah, chairperson and Justice Arijit Pasayat, vice chairperson of the SIT.

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COMMENTS

manoharlalsharma

3 years ago

BIG fishes do not netted in small once & NARENDRA MODY willnot act on BHUSAN advice.

nilesh prabhu

3 years ago

"Reliance Gas Transportation Infrastructure Ltd, which is a company 100% owned by Mr Mukesh Ambani personally,"

Is not RELIANCE a trademark of RIL which is a public ltd company, then how can mukesh ambani share this trademark.

RIL has to stop mukesh from using RELIANCE trademark

Abdulraheman

3 years ago

The fathers of the Constitution have committed the Himalayan Blunder by making the President of India merely "Rubber Stamp". The world renown "checks and balances" system of transparency which is the hallmark of truth and justice miserably failed. Ther4e is urgent need for the people of India to repose confidence in "socialism " and rule of law. MISSION HINDUSTAN IS FOR THE NEW REPUBLIC OF HINDUSTAN.

Jai Verma

3 years ago

What BJP govt is doing,in campaign they claimed having remedies for every thing now showing no strength against big business houses

Ravindra

3 years ago

The Government of India should write to Govt of Singapore that unless the facts of this case at Singapore end, certified by the Singapore Govt are sent to Govt of India, all investments from Singapore in India will be stopped. They only understand such langauage.

ch prakash

3 years ago

Except few companies like Infosys, all these companies made tons of money by exploiting the natural sources acquired by paying pittance by ripping the fellow citizens.

REPLY

Pantulu

In Reply to ch prakash 3 years ago

It is very true. Companies like Infosys are only exceptions in this country. It is very strange that not many people talk about Companies like Reliance who are responsible for many ills in our system.

SAT upholds SEBI's 'unfit' order against Financial Technologies
In an order by majority view, the SAT said that as the time granted to FTIL for divesting its stakes had already expired and the company can take another four weeks to exit its holdings
 
The Securities Appellate Tribunal (SAT) on Wednesday dismissed Jignesh Shah-promoted Financial Technologies’ (FTIL) plea against market regulator Securities and Exchange Board of India (SEBI)'s order declaring the company unfit to own stakes in market infrastructure institutions. SAT said that decisions by financial market regulators have bearing on each other.
 
The SAT also gave FTIL four weeks to divest its stakes in bourses, including MCX-SX.
 
SAT's presiding officer JP Devadhar said the moot question was if the orders of one regulator have a bearing on others, and ruled in favour of SEBI saying the trades regulated by the commodity markets regulator Forward Markets Commission (FMC) are similar to those regulated by SEBI.
 
SEBI had passed its orders following a similar order by FMC after the Rs5,500-crore scam at National Spot Exchange Ltd (NSEL), 99.99% owned by FTIL, came to light.
 
Stating that there were differing views within the three-member Bench, Devadhar said the order was being passed as per the majority view. SAT member AS Lamba had the contrarian view and termed SEBI order as “unprofessional”.
 
Devadhar said order passed by one regulator would have to defacto apply to other regulators and not following this principle would defeat the spirit of regulation.
 
He said that as the time granted to FTIL for divesting its stakes had already expired, the company can take another four weeks to exit its holdings.
 
FTIL owns 26% in commodities bourse Multi-Commodity Exchange (MCX) and has a 70% stake in MCX-SX and MCX-SX Clearing Corporation.
 
Its MCX-SX ownership is 5% through equity and the rest through convertible warrants. At the time of the SEBI order FTIL and MCX held just under 5 per cent stake in the stock exchange MCX-SX.
 
The troubled company also has stakes in the Delhi Stock Exchange and Vadodara Stock Exchange in addition to a small holding in the NSE.
 
The SEBI had passed an order on 19th March stating that FTIL was not “fit and proper” to hold any stakes in any of these exchanges. The SEBI order followed a similar one on 17 December 2013 by commodities watchdog FMC against the company and its promoter Jignesh Shah and key officials like Joseph Massey.
 
FTIL has also challenged the FMC order of December last year in the Bombay High Court, which is yet to conclude the hearing.
 

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Govt revises format of OBC caste certificate
Difficulties were being faced as the OBC caste certificate had space for mentioning the name of the   caste or community but no space for indicating the specific resolution by which the said caste or   community has been included in the central list
 
The union government has revised the format of caste certificate for other backward class (OBC) to make it easier for them to get the benefit of reservation.
 
Representations were being received from OBC candidates citing difficulty in getting the benefit of reservation, Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh told Lok Sabha in a written reply.
 
Difficulties were being faced as the caste certificate had space for mentioning the name of the caste or community but no space for indicating the specific resolution by which the said caste or community has been included in the central list of OBC, he said.
 
“The issue was examined in consultation with the National Commission for Backward Classes and the format of the OBC certificate has since been revised,” the Minister said.

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