The agency alleged that Jugal Kishore, a former ITAT member, demanded bribe of Rs30 lakh from the accounting firm for the undue favours extended to them in Income Tax matters of various parties before the tribunal
New Delhi: The Central Bureau of Investigation (CBI) has filed a charge-sheet before a Kolkata special court against a former member of Income Tax Appellate Tribunal (ITAT) for allegedly colluding with the owners of an accounting firm to deliver favourable orders to its client in lieu of illegal gratification, reports PTI.
The agency filed its charge-sheet against the then ITAT accountant member Jugal Kishore and five other persons including the owner of accounting firm SK Tulsiyan & Company SK Tulsiyan, Shashi Tulsiyan, Ravi Tulsiyan besides middle men Subhash Chand Barjatiya and Nishant Jain.
The agency alleged that Mr Kishore demanded bribe of Rs30 lakh from the accounting firm for the undue favours extended to them in Income Tax (I-T) matters of various parties before the tribunal.
“The Tulsiyans were acting as a tout to Jugal Kishore and were the middlemen and prepared orders on behalf of the members of ITAT, Kolkata and manipulated orders,” a CBI spokesperson said here today.
The agency had registered the case against Mr Kishore and five others on 13 May 2008. Mr Kishore was allegedly caught red-handed while accepting the bribe during a trap laid down by the agency.
“Nishant Jain and Subhas Chand Barjatiya, who had come out from the residential premises of Jugal Kishore after handing over the bribe amount to Mr Kishore on behalf of the Tulsiyans, were apprehended by a team of CBI officials during the trap laid down by the agency,” the official said.
The CBI which was awaiting sanction of prosecution against Mr Kishore received it on 5th January and filed the charge-sheet yesterday.
The spokesperson said during the searches conducted at Mr Kishore's residence Rs28 lakh of alleged bribe money was recovered while the remaining Rs2 lakh was found in a brief case with Mr Jain and Mr Barjatiya.
“Subsequently during investigation Ravi Tulsiyan, Sajjan Kumar Tulsiyan and Shashi Tulsiyan were also arrested in this case for their active participation in the commission of the offence,” the spokesperson said.
Later during the searches at the offices of the accounting firm, CBI claimed that it had recovered nearly 14 computer discs carrying over 70 pre-dated judgements which were delivered in various benches of the tribunal, sources said.
For the past three months, the SBI brass has been pegging the capital infusion size at around Rs6,000 crore. Last month, CFO Diwakar Gupta said an infusion may happen ‘any time’, while chairman Pratip Chaudhuri last week said he has received a letter from the finance ministry on recapitalisation
Mumbai: The government has agreed to infuse fresh capital into State Bank of India (SBI) through a preferential issue and the country’s largest lender will get up to Rs6,000 crore before the fiscal-end, reports PTI quoting chairman Pratip Chaudhuri.
“We will be having a preferential issue and will be getting capital through it,” Mr Chaudhuri told PTI when asked about the progress on its proposed recapitalisation.
When asked what could be the quantum of the infusion, he said, “The size will be Rs5,000 to Rs6,000 crore.”
He did not give any specific indication about the timing of the issue, though he said it will happen before 31st March.
SBI’s total capital adequacy ratio (CAR) stood at 11.4% as of the September quarter, of which core Tier-I capital stood at 7.7%, below the 8% level desired by the government.
It had first announced its intention to raise up to Rs20,000 crore through a rights issue over a year ago, but the government, which holds a 59.4% stake in the lender, has delayed the proposal as it will have to subscribe to almost two-thirds of the money.
For the past three months, the SBI brass has been realistically pegging the capital infusion size at around Rs6,000 crore. Last month, chief financial officer Diwakar Gupta said an infusion may happen ‘any time’, while Mr Chaudhuri last week said he has received a letter from the finance ministry on recapitalisation.
The recapitalisation will take the bank’s Tier-I capital ratio to over 9%, he had said.
A slew of lenders, including Bank of Baroda, Bank of Maharashtra and Union Bank have made similar announcements in the recent past. Bank of Baroda would be getting Rs775 crore this fiscal while Bank of Maharashtra is ready for an Rs860 crore preferential issue.
“As part of increasing its stake to the mandated 58%, the government has agreed to pump in Rs775 crore into the bank. The fund infusion will happen before the end of the fiscal,” Bank of Baroda chairman and managing director Mallya told PTI last month end, adding this would be done by way of a preferential issue.
In March last year, the government pumped Rs2,675 crore into BoB, increasing its stake to 57.3% from 53% earlier. With the infusion of Rs775 crore, government ownership in the bank will touch the mandatory 58% level, Mr Mallya added.
Union Bank also said it would be recapitalised by the government this fiscal. UBI said it would receive a capital infusion of Rs280 crore from the government.
Last week, a finance ministry official said the government would be pumping Rs17,000 crore into various state-run banks this fiscal. This makes the additional requirement Rs11,000 crore, which the official said would be met through a supplementary demand.
The FY11-12 Budget had earmarked only Rs6,000 crore for recapitalisation of state-run banks in the current fiscal.
The other banks that are likely to get a fresh capital infusion are IDBI Bank and Syndicate Bank, among others.
In 2010-11, the government had provided capital support worth Rs20,157 crore to various public sector banks.
A committee headed by finance secretary RS Gujral is working out a strategy for capitalisation of public sector banks over a period of next 10 years to meet Basel III requirements, under which the 26 state-run lenders would need Rs3.6 lakh crore in fresh capital.
A Barclays Capital report sees the skyscraper frenzy as an indicator of impending doom that reflects a widespread misallocation of capital and an impending economic correction
It is a popular belief that when buildings get taller, it foreshadows an economic collapse. Now, a Barclays Capital report reinforces this hypothesis and goes on to warn investors about China, which is witnessing a ‘skyscraper boom’ and India, which has some 14 skyscrapers under construction.
The Barclays report ‘Skyscraper Index—Bubble Building’ says, “Our Skyscraper Index continues to show an unhealthy correlation between construction of the next world’s tallest building and an impending financial crisis. Investors should therefore pay particular attention to China—today’s biggest bubble builder with 53% of all the world’s skyscrapers under construction—and India, which with just two completed skyscrapers, now has 14 skyscrapers under construction.”
Skyscrapers have largely been testimony to troubling times that follow soon: The Chrysler and Empire State Building in New York in 1930; the Sears Tower in Chicago in 1974; the Petronas Towers of Kuala Lumpur 1997 and the latest wonder—the Burj Khalifa of Dubai in 2010. Dubai, which had gone on a landscaping and architecture frenzy that culminated in the Burj Khalifa—saw a downturn soon after.
Even buildings constructed for companies are not exempt from these rules: Nasdaq’s MarketSite Tower appeared in Times Square in 1999, just three months prior to a 70% crash in Nasdaq Composite Index. Enron’s grand building, complete with its eight-storey high trading floor was sold off at one-third of its $300 million cost to pay off part of the $50 billion debt the company owed.
According to the Barclays Capital report, China will complete 53% of the 124 skyscrapers under construction over the next six years, expanding the number of skyscrapers in Chinese cities by a staggering 87%. China’s skyscrapers are not only increasing in number—it now has 75 completed skyscrapers above 240 metres in height—but the average height of the skyscrapers that it is building is also increasing as past liquidity fuels the construction boom.
The report says, “Over 70% of China’s skyscrapers are clustered in the more economically advanced coastal areas of the Pearl River Delta and the Yangtze River Delta. Over 50% of China’s skyscrapers are today in Tier 1 cities, and based upon current completion plans, about 80% of China’s new skyscrapers will be built in Tier 2 and Tier 3 cities over the next six years—an evidence of the expanding building bubble.”
The report says that the growth of Asian (excluding Japan) construction in the 1990s is consistent with the region’s completion of the world’s tallest buildings and the onset of the Asian financial crisis. More recently, it has been the Middle East, which now has the world’s tallest building—the Burj Khalifa where the recent concentration of skyscraper building has emerged.
India is not behind her illustrious neighbour and rival. Today India has only two of the world’s 276 skyscrapers over 240m in height, yet over the next five years it intends to complete 14 new skyscrapers, in what will prove to be its largest skyscraper building boom.
India is also constructing the 103-storey Tower of India in Mumbai, scheduled to be completed by 2016. It will then become the tallest building in the world, second only to Burj Khalifa in Dubai. In 2011, the construction was stalled.
“If history proves to be right, this building boom in China and India could simply be a reflection of a misallocation of capital, which may result in an economic correction for two of Asia’s largest economies in the next five years,” concludes the report.
It is widely believed that when people run out of ideas and become too arrogant, they join the skyscraper race to outdo their rivals—a very expensive show of one-upmanship. Such projects are rarely viable—the Burj Khalifa has many empty floors.
India has already seen the massively wasteful Antilia, residence of Mukesh Ambani and reportedly the most expensive private residence in the world. The grotesque structure was completed in 2010, which was soon followed by a downturn next year. Around the same time, property prices escalated in Mumbai and Delhi— India’s realty hotspots. A slew of tall buildings surfaced in these cities, which are presently regarded as extremely inefficient markets in the country.
William J Mitchell, wrote in his essay, ‘Do We Still Need Skyscrapers?’ in Scientific American: “In the 21st century, as in the time of Cheops, there will undoubtedly be taller and taller buildings, built at great effort and often without real economic justification, because the rich and powerful will still sometimes find satisfaction in traditional ways of demonstrating that they’re on top of the heap.” May India cease from demonstrating exactly that.