Companies & Sectors
CCEA clears partial de-control of sugar sector

The CCEA’s decision was based on the recommendation of the Rangarajan committee report submitted in October last year


The government on Thursday gave sugar mills freedom to sell the sweetener in the open market and unburdened them from the obligation of supplying the commodity at subsidised rates for ration shop—a decision that will help the industry save about Rs3,000 crore annually.

 

The government maintained that the decision will not lead to any rise in retail prices of sugar. However, it would double the government’s subsidy burden to Rs5,300 crore annually from about Rs2,600 crore. The decision to partially decontrol sugar sector, the only industry left under the government control, was taken by the Cabinet Committee on Economic Affairs (CCEA).

 

“The regulated release mechanism may be dispensed with immediately. Obligation of levy on sugar mills be done away with for sugar produced after September 2012,” food minister KV Thomas told reporters after the meeting.

 

Under the regulated release mechanism, the Centre fixes the sugar quota that can be sold in open market. Of late, this mechanism has been relaxed and the quota is now being released on half-yearly basis from the earlier monthly-wise.

 

In levy sugar system, millers are required to contribute 10% of their output to the Centre for running ration shops at cheaper rate, costing industry Rs3,000 crore a year.

 

Thomas further said the requirement of sugar for ration shops may be procured by states through the open market through a transparent system. “The Government of India will bear the difference between the ex-mill price of Rs32 per kg and retail sugar price of PDS at Rs13.50 per kg,” Thomas added.

 

The government will continue to fix fair and remunerative price of sugarcane. The minimum distance criteria between two mills will also continue, among other controls. The CCEA’s decision to remove two major controls on the sugar sector was based on the recommendation of the Rangarajan committee report submitted in October last year.

 

Assuring that the government will continue to supply sugar via ration shops at a cheaper rate, Thomas said: “As per the Rangarajan Committee recommendation, levy sugar has to be taken out of the system, we had a discussion. What we have decided is that the present public distribution system (PDS) system will continue at the same rate, same quantity.”

 

“The states will be mandated to sell sugar at current retail issue price (RIP) of Rs13.50 per kg. The state will be given the subsidy for the balance amount between RIP and the current ex-mill price calculated provisionally at Rs32 per kg," he said. The ex-mill price will be capped at Rs32 for 2012-13 and 2013-14 marketing years (September-October), he added.

 

The government supplies about 17-20 lakh tonnes annually through ration shops at subsidised price bearing a subsidy of about Rs2,600 crore annually, which is over and above the Rs3,000 crore borne by the industry. “At present, the subsidy is Rs 2,600 crore. By removal of levy sugar obligation, it will go up to Rs5,300 crore," he said.

 

Thomas said the recommendations of the Rangarajan Committee relating to cane area reservation, minimum distance criteria and adoption of the cane price formula be left to state governments for adoption and implementation as considered appropriate by them.

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Public Interest Exclusive
Saharashri Subrata Roy hits out hard at the SEBI chairman; seeks apology

At an event in Mumbai on Wednesday, SEBI chief UK Sinha indirectly pointed out the games Sahara has been playing about repaying the money as per a Supreme Court order. Today, in an open attack on SEBI chairman, Sahara put out a press release saying that “rich men’s SEBI do not understand, recognise poor Investors”.


Yesterday at an event at Indian Merchants’ Chamber of Commerce in Mumbai, SEBI chairman UK Sinha pointed out the menace of Collective Investment Schemes which are thumbing their nose at the market regulator. In a veiled attacked on Sahara, he pointed out: “There is a famous instance where a company has claimed that it has refunded more than Rs20,000 crore in the last three to four months to so-called investors out of which more than 90% cent has been returned in cash. How feasible and credible can this story be?” Sinha wondered.
 

While Sinha did not name Sahara (neither did most newspapers who are large beneficiaries of Sahara advertisements), in a strongly worded press release issued today, Sahara attacked the SEBI chief.
 

Here is the text of the unedited press release in all its glory. Please savour it.

“Sahara complained that SEBI Chairman Sri U.K. Sinha neither gave time to meet our Chairman since last one year nor he accepted the invitation for appearing with our Chairman in T.V. Channel for informing people the truth and torture given to Sahara. Such a big responsible person should not give irresponsible statements that how and why Rs.20,000 crores repayments were made in 4 months and 90% was paid in cash.  Well, he should have asked these questions to Sahara first.
 

Repeatedly we have written to SEBI and everywhere that our investors are very small and mostly living in small townships and rural areas. These investors do not go to Banks and Banks do not come to them.
 

Our investors profile on the basis  of principal amount.

Upto Rs. 5, 000/- = 1.33 crores, upto Rs.10,000/- another  0.88 crores, upto Rs.15,000/- another 0.42 crores, upto Rs.20,000/- another 0.36 crores. This totals to 2.99 crores out of total investors of 3.07 crores. We genuinely hope that the SEBI Chairman should kindly send an amended statement to Media with realisation and apologies that why cash repayments to around 90% investors have been made and the 90% cash payments are totally justified.

Upto Rs. 20,000 repayments (including interest) it is cash payments only as per country’s law.
 

It should also be clear that 90% amount of investors in both the companies have come from investors upto Rs.20, 000 that is 2.99 Crores. So any logical but unbiased mind shall be convinced, accept and understand our challenge in the past also that there cannot be any case of fictitious, fake investors in Sahara.
 

He has also mentioned about paying Rs. 20,000 crores in 4 months. But majority payments are in 5 months plus time.
 

SEBI knows the reason very well that upto April 2012, esteemed investors through our committed and highly concerned field workers in Lakhs, knew that Hon’ble Supreme Court is likely to give 5 – 6 years against security of properties. We have submitted the valuation reports of properties to Hon’ble Supreme Court.
 

In fact in case of RNBC under regulation of Reserve Bank in 2008, RBI had given 7 years time to repay.  This 7 years time was given within 10 days from the date of Prohibitory Order.  So there was no chance, no reason of big rush demands of any nature.
 

Again the same profile of investors in RNBC also that is deposit of around Rs.20,000 crores with 3 crores plus investors. Important to note that we had almost repaid all liabilities 3 years in advance in RNBC.
 

But all of sudden in May 2012, 1st Week, Hon’ble Supreme Court ordered for continuous hearing in June 2012 and decision had to be given the same time.
 

During April 2012, one news was probably infected by some interested party which spread like wild fire in our field, Countrywide that in case of Golden Forest Company which was exactly similarly initiated and fought by SEBI. After Hon’ble Supreme Court’s decision in 2004 in this Golden Forest Company for repayment, not a single rupee has been paid to any investors till today that is in 8 – 9 years. Workers and Investors also knew that there were dozens of other Companies where, SEBI’s had taken action but not a single investor have received one rupee till now.
 

Also, company as sole custodian of Investors money from last 34 years got concerned about Esteemed very small investors.
 

Then there was big rush with demands for repayments. There were big – big queues in front of offices throughout the country. We had to repay big sum but could contain to a great extent the rush by around middle of June. So almost 60% repayments had to be done in around 45 days only.  Really a very difficult time for Sahara for no fault of ours.
 

No fault of ours since we did this OFCD business after we got all valid permissions in writing from Central Government through Ministry of Corporate affairs as our regulator who continuously used to inspect and investigate, all Balance Sheets etc. were regularly to be submitted to them etc. etc. for last 10 – 11 years as our regulator but we faced and are facing very difficult days with retrospective effect punishments. Government departments who gave us written permission are not accused at all. Had they not given these permissions we would not have collected even one rupee and we would not have faced any problem. Well we are Prajas and they are Rajas.
 

One thing SEBI should understand that, had there been any hanky – panky by Sahara as accused by Chairman SEBI, then why we could not manage 5000 Crore which we have paid to SEBI.
 

Humble request to SEBI to act Judiciously like a very responsible and very big Regulator as big brother of society.

User

COMMENTS

CA PRADEEP AGARWAL

4 years ago

Who is greater SAHARA OR SEBI? Is it Power speaking against a regulator, though the regulator itself is not without blemishes, but then to it is a regulator, though might have acted against the interests of small investors, there are several instances but for that can be sued for it in the Court of Law

REPLY

nishi

In Reply to CA PRADEEP AGARWAL 4 years ago

Sahara, no doubt about it. Indian politicians knows how to make a fool of 120 crore Indian, time and again and make the regulator toothless.

CA PRADEEP AGARWAL

In Reply to nishi 4 years ago

They are regularly making fools and we are becoming, will a time come to repay the debts

ashwin bahl

4 years ago

If the mess is not messier, let us maKe it even more messier bole toh end conclusion will never be reached ?
qte
EoW Probe Into Sahara-Sebi Row

Abhijit.Sathe @timesgroup.com

The running battle between Sahara India and the Securities and Exchange Board of India over the Rs 24,000 crore the company has been ordered to refund to its investors has now reached the Mumbai police’s doors.
The Economic Offences Wing of the Mumbai Crime Branch has launched a preliminary inquiry against Sahara following a complaint from Sebi that the company is intimidating the investors. Sahara chief Subrata Roy and other top executives, meanwhile, have been summoned for personal appearance before Sebi on Wednesday in the high-profile case involving an estimated 3 crore investors.
Late on Tuesday night, Additional Commissioner of Police Rajvardhan refused to discuss any specifics of Sebi’s complaint. “We have been asked by the Government of India to investigate the case. We have initiated a preliminary investigation. No complaint has been filed yet.”
The Sahara group was asked by the Supreme Court in August last year to repay deposits raised by “dubious” means from nearly 3 crore small investors.
unqte
Lage rahgo! gol sab ko ghumato raho!

CA PRADEEP AGARWAL

4 years ago

Are Yar all are hand in gloves and the best part is we need some people to expose their misdeeds....otherwise what is power game...........MONEY? Yeh Kalyug hai Meri Sarkar.

CA PRADEEP AGARWAL

4 years ago

Do not understand who is the poor investor Mr Subroto Rai or?

nishi

4 years ago

For over three decades Sahara was flouting the norms and rules for accepting deposits. This was going on right under the nose of SEBI, RBI, IT, ED, ROC and MCA.

The reason for SEBI now to go after Sahara is not a unique and this even the Peon in my office knows that Sahara's biggest supporter is SP and all the black money of SP etc is routed through Sahara to laundered. The current equation between SP and UPA all knows, so SEBI is a tool to keep check on Sahara which in turn will keep check UPA’s support.

This is all political game and fully scripted by the masters of UPA so that scrutiny etc will be in 2012, 2013 which will keep SP in check.

Even the media knows this very well, but due to whatever reason this link will not be out and expose.

REPLY

CA PRADEEP AGARWAL

In Reply to nishi 4 years ago

Nowadays, flouting the rules has become the norms and Mr Roy says that that power is the game to play, what I feel. Further, Mr Sinha would certainly not have taken such steps, unless they were initiated.

ashwin bahl

In Reply to nishi 4 years ago

Spot on with your assessment,and what does all this and other tactics which are used amount to..that we are a Banana Republic containing Mango Men !

nishi

In Reply to ashwin bahl 4 years ago

Correct, As long as corrupt and dishonest and self centered rulers will be India, this will be a non event in a history

ashwin bahl

4 years ago

Moral of the story is Hum Sab Chor Hain ! Who can you trust these days ? We will never know the true inside story of any Company, SEBI.........aam aadmi gaya tel lagane once his hard earned funds are mopped up !

ashwin bahl

4 years ago

What about the Audits all these years ? Has it ever been done ? By who ? Oh it is TOP SECRET !

Satyan Israni

4 years ago

do these advertisements amount to contempt of court since the matter is sub-judice?

sachchidanand

4 years ago

On the face , it appears to be a witch hunt by SEBI. Kisane Supari di hai Sahara ko khatam karane ki ? Interesting to know from my experience that SEBI treats RTI querries with bias in favour of , not victims , but the perpetrators. I had sought information on Vanishing Companies who collected thousands of crores from gullible investors & vanished . I had specifically sought info on names of Merchant bankers who were hand in glove with fraudulent companies. No information was ever furnished. I appealed to Appellate Authority. Nothing came out. Why is SEBI protecting Merchant Bankers & Brokers ? Even GOD may not know!

REPLY

Rajhkumar Shaaw

In Reply to sachchidanand 4 years ago

sachchidanand Sir, please get in touch with me 9920755320. I am researching on such companies. May be you can guide me.

Sadanand Patwardhan

In Reply to sachchidanand 4 years ago

Is it necessary to take sides as if it is a SEBI vs. Sahara race to the bottom? SEBI's wrongdoings do not condone Sahara's or vice versa. It would be educative to judge each independently on merit.

Ravindra

4 years ago

Sahara is right when it says that instead of Public Meeting, these questions should have been asked to Sahara directly.

Mr. Sinha is no Political or Public leader who has to take recourse to Public meetings or utterances. He has enough authority of his own to ask these questions directly to Sahara.

REPLY

Sadanand Patwardhan

In Reply to Ravindra 4 years ago

Is it necessary to take sides as if it is a SEBI vs. Sahara race to the bottom? SEBI's wrongdoings do not condone Sahara's or vice versa. It would be educative to judge each independently on merit.

Sucheta Dalal

In Reply to Ravindra 4 years ago

Either you are speaking for Sahara, like many others who have commented on this report. Or you have not followed the story. It is the SEBI Chairman's job to highlight issues in a public meeting. He did that. He did not even name Sahara. But if the shoe fits.... Sahara showed it by this ridiculous response.

Arun Mehta

In Reply to Ravindra 4 years ago

Sahara only fears the apex court that too for contempt law.Others, they just ignore for the simple reason lots of politicians have a significant stake in Sahara.Period.

ashwin bahl

4 years ago

We are mango people, we do not understand what is going on!

Sadanand Patwardhan

4 years ago

Shri Bal Krishna Gupta.

You wanted to know more about U K Sinha. Arun Agrawal from Bangalore has written extensively on it. Here is the link: http://canarytrap.in/2012/09/27/download...

Trust it whets your appetite.
==============================
Time has come that India would be compelled to recognise the talent of Sahara Shri Subroto Roy. UIDAI may be scrapped, Nandan Nilkeni sent packing home, and the Direct Benefit Transfer Scheme should be handed over to Sahara India for flawless and efficient execution without GOI having to pay extravagantly for hardware and software infrastructure as well as costly software glitches in actual operations. This would achieve another very important objective, that of Inclusive Development. Instead of paying huge amounts to fabulously rich IT and BPO companies, the average, poor, mofussil Indian would get an opportunity to improve his earnings and life. Come elections in 2014, and this army of dedicated and ubiquitous Sahara workers would ensure victory of any ruling dispensation.
_______________________
Roy is simply asking, has anybody complained to anybody that Sahara India Group has duped her? No! Then, where is the case of malfeasance made out against Sahara? No one has complained because may be no one has invested in Sahara India companies. That is, there are no genuine small small investors as claimed by Sahara is what Supreme Court seems to suspect. If there are no genuine investors, then where has the money come from. The responsibility for allaying these suspicions is squarely on Sahara India and Sahara Shri Subroto Roy. Until this is done, its operations run the risk of being viewed as the biggest money laundering service operating in the country. Investigating agencies tasked with nailing Economic offenses have their work cut out for them. Unfortunately for them, this one doesn't promise any foreign junkets. Who stops them from biting the bullet?
___________________________
For more visit:
1] http://searchlight-is-on.blogspot.in/201...
2]http://searchlight-is-on.blogspot.in/201...
3]http://searchlight-is-on.blogspot.in/201...
4]http://searchlight-is-on.blogspot.in/201...
5]http://searchlight-is-on.blogspot.in/201...

Sadanand Patwardhan

4 years ago

Shri Bal Krishna Gupta.

You wanted to know more about U K Sinha. Arun Agrawal from Bangalore has written extensively on it. Here is the link: http://canarytrap.in/2012/09/27/download...

Trust it whets your appetite.
==============================
Time has come that India would be compelled to recognise the talent of Sahara Shri Subroto Roy. UIDAI may be scrapped, Nandan Nilkeni sent packing home, and the Direct Benefit Transfer Scheme should be handed over to Sahara India for flawless and efficient execution without GOI having to pay extravagantly for hardware and software infrastructure as well as costly software glitches in actual operations. This would achieve another very important objective, that of Inclusive Development. Instead of paying huge amounts to fabulously rich IT and BPO companies, the average, poor, mofussil Indian would get an opportunity to improve his earnings and life. Come elections in 2014, and this army of dedicated and ubiquitous Sahara workers would ensure victory of any ruling dispensation.
_______________________
Roy is simply asking, has anybody complained to anybody that Sahara India Group has duped her? No! Then, where is the case of malfeasance made out against Sahara? No one has complained because may be no one has invested in Sahara India companies. That is, there are no genuine small small investors as claimed by Sahara is what Supreme Court seems to suspect. If there are no genuine investors, then where has the money come from. The responsibility for allaying these suspicions is squarely on Sahara India and Sahara Shri Subroto Roy. Until this is done, its operations run the risk of being viewed as the biggest money laundering service operating in the country. Investigating agencies tasked with nailing Economic offenses have their work cut out for them. Unfortunately for them, this one doesn't promise any foreign junkets. Who stops them from biting the bullet?
___________________________
For more visit:
1] http://searchlight-is-on.blogspot.in/201...
2]http://searchlight-is-on.blogspot.in/201...
3]http://searchlight-is-on.blogspot.in/201...
4]http://searchlight-is-on.blogspot.in/201...
5]http://searchlight-is-on.blogspot.in/201...

SHAILESH

4 years ago

It is certainly true, SEBI is remote controlled by the same Congress Govt., who are the most corrupt and have done the most scams in our country.They are the one who has disregarded Supreme Court Order in ITC & Vodafone case by taking the president (puppet of congress govt.) consent.

SEBI has destroyed the entire CAPITAL Market, which includes Mutual Funds & all other investment plans by their whimsical rules & regulations. They never understand the problems of the poor and small investors. They set the rules for the industry and if any thing goes wrong, they do not take the blame on them. They start blaming others as fraudsters.

skp

4 years ago

SAHARA has not worked as a corporate, they have not accepted any application from the investor's. They have converted huge amount from these two cos. to Q shop and such schemes, without much clarity to investors. No agency is looking into money flow ?? we do't know ROC is digging what area, if raids could have been on all sahara offices, all papers they must have got. But unfortunately there is no action so far. SEBI is also not refunding atleast that 5000 cr, which is now available with them. Every thing is hoth-poch here.

REPLY

Arun Mehta

In Reply to skp 4 years ago

The very concept of" Q" shop is an issue to be subject to scrutiny. Sadly, our ever greedy cricketers walked into the Saharshri's 'Honeytrap' and modeled in TVC's for this elusive brand to give 'credibility' to this new forced diversion of refunds ordered by Apex court.

Improvement in current account deficit is largely seasonal

With exports languishing, higher oil prices, a weakening trend in invisibles and continued supply-side constraints, India’s current account deficit is expected to remain at around 5% of GDP in FY14, says Nomura in its Asia Chart Alert

In Q1 2013, India’s trade deficit is set to improve to $47 billion from $59 billion in Q4 2012. This improvement is, however, largely seasonal, as exports improve during the final month of the financial year. On a seasonally adjusted basis, the trade deficit is estimated at $53 billion in Q1 versus $57 billion in Q4, suggesting that around 70% of the expected improvement is due to seasonal factors, according to Nomura in its Asia Chart Alert.

 

Nomura believes that the true test of whether the trade deficit is sustainably improving will be the trend beyond March 2013, rather than in the month of March. With exports languishing, higher oil prices, a weakening trend in invisibles and continued supply-side constraints, Nomura remains sceptical and expects the current account deficit to remain at around 5% of gross domestic product in FY14 (year ending March 2014) from an estimated 5.2% in FY13.

 

The trade balance is expected to improve in March (data due 10-15 April 2013). This is shown in the figure below:
 

According to the Commerce Minister, the trade deficit in FY13 may be around $192-196 billion. This implies a deficit of $10-14 billion in March 2-13, much smaller than the deficit of $15 billion in February 2013 and $20 billion in January 2013.

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