According to the CPI-M, the neo-liberal policies of the UPA government have widened the gap between the rich and the poor and the country is today divided between ‘suffering’ and ‘shining’ India
Expressing concerns over the declining value of rupee and a serious economic situation, the Communist Party of India (Marxist)- CPI(M) has asked the union government to take immediate measures to retrieve the situation.
Expressed serious concern during the zero hour in Lok Sabha, CPI (M) leader Basudeb Acharia said, “Government has failed to check the sliding of the rupee which is now worth over Rs60 per dollar. Inflation in food articles is over 10 per cent and prices of all essential commodities have reached abnormal levels. The situation is serious.”
Livelihood of the people has reached 'precarious levels with one-fourth of the population going to bed in empty stomach. The rate of employment generation has gone down from 2.8% to 0.8%, he said.
“All this is happening because of the wrong policies pursued by the government. The neo-liberal policies have widened the gap between the rich and the poor and the country is today divided between ‘suffering’ and ‘shining’ India,” he said, adding the hike in diesel prices was raising costs, adversely affecting the people.
Acharia demanded that the government “immediately revert all its neo-liberal policies” to retrieve the situation.
SFIO is probing 67 companies for running Ponzi or money circulation schemes. In addition, the government has received complaints of financial fraud against 154 companies including Saradha, Rose Valley group, Vaishnavi Corporate Communication, Speak Asia, Reebok India and Alchemist Infra
Serious Fraud Investigation Office (SFIO) is probing 67 companies for allegedly running Ponzi or money circulation schemes. Corporate Affairs Minister Sachin Pilot said his ministry has ordered SFIO to conduct probe against 67 companies who had allegedly floated Ponzi or multi-level marketing (MLM) schemes.
"...Investigation is being conducted in respect of all of them. As and when the investigation is completed, government orders prosecution in respect of violations of the provisions of the Companies Act, 1956 and Indian Penal Code, 1860," Pilot said in a written reply to the Rajya Sabha.
Ponzi or MLM schemes are fraudulent investment operations, which lure investors with promise of high returns.
Pilot also said the government is looking into complaints of financial frauds against 154 companies including those connected with Saradha Group and Rose Valley Group.
"Complaints have been received against 154 companies/ organisations during the last three years," he said, adding that his ministry has ordered probe of the balance sheets and other documents in these cases.
"Some cases have been referred to the Economic Offences Wing (EoW) of the concerned state government for further investigation," he added.
As per the list provided by the Minister, complaints of financial fraud have been received against Saradha Group's 10 entities such as Saradha Realty, Saradha Agro Development, Saradha Exports and Saradha Garden Resorts & Hotel.
Besides, the list includes names of 14 entities related to Rose Valley Group including Rose Valley Industries, Rose Valley Marketing and Rose Valley Hotels and Entertainment.
Vaishnavi Corporate Communication, Speak Asia, Reebok India, Alchemist Infra are among the other companies against whom complaints have been received, according to the list.
On steps initiated by the government to detect corporate wrongdoings, Pilot said the ministry is in the process of developing an early warning system to identify cases of frauds or potential frauds at the earliest.
"Pilot testing of the system is expected to be completed during 2013-14," the Minister said.
In addition, Pilot said various measures had been undertaken to protect the investor' interests through programmes on awareness and education.
Some of these steps include issue of multi-lingual print media advertisements from time to time to caution the investors about fraudulent investment schemes, creation of facility on MCA-21 website for lodging complaints and for tracking their status and a system of sending SMSes cautioning investors to be careful while making investments.
The management, however, acknowledged that currency and its fertiliser business have been impacted, coupled with plant stoppages and higher energy prices
Tata Chemicals Ltd reported standalone net profit of Rs100.43 crore, for the April-June period, compared with Rs68.13 crore same period last year, on robust sales and stable realisations in the consumer business segment. However, the Tata Group company’s fertilisers and agri-business were affected. During the June quarter, Tata Chemical said its total revenues increased Rs1,738.64 crore from Rs1,586.34 a year ago period.
R Mukundan, managing director, Tata Chemicals said, “(During the quarter) Fertilisers and agri-business had an adverse impact of foreign exchange volatility and raw material shortages. International entities are challenged with issues of softening demand, lower realisations, plant stoppages and increasing energy prices.”
The company’s global chemical performance was impacted due to softening demand, lower realisations and plant stoppages. Haldia production suffered due to non-availability of phosphoric acid during the quarter. Tata Salt sales is up 3.4% while the company is the market leader with 65.2% market share in the national branded salt segment.
The company repaid $95 million in June 2013 as part of the ECB-$475 million loan pay off.
The company’s urea production is inline with expectation, with higher urea imports during the quarter. Despite lower urea prices, the weak Indian rupee cancelled the gains. The DAP/NPK was impacted due to ambiguity on the subsidies and raw material stoppages. Neem coated urea accounted for 35.7% of the total urea production. The officials are, however, playing the watch and watch game.
“We remain cautious on global demand scenario going forward domestically as well as internationally and while prices may remain at the same levels margins remains under pressure. Subsidy outstanding has come down as compared to March 2013 levels, but will continue to remain a challenge in the balance portion of the year,” Mukundan added.
Tata Chemicals closed Monday 2.3% down at Rs258.8 on the BSE while the benchmark Sensex ended marginally higher at 19,182.