Leisure, Lifestyle & Wellness
ED issues fresh show cause notice to BCCI over IPL-2 contracts

PL-2 was held in South Africa after the venue was shifted from India. There have been allegations of ill-gotten money flowing into the T-20 tournament from foreign tax heavens

 
Mumbai: The Enforcement Directorate (ED) has issued a show cause notice to Board of Control for Cricket in India (BCCI), for alleged foreign exchange violations in acceptance of deposits of Rs60 crore for award of contract for conducting the second season of the Indian Premier League (IPL), reports PTI.
 
ED sources said investigation has revealed that the Foreign Exchange Management Act (FEMA) contraventions were committed by BCCI in accepting deposits of Rs20 crore from Emerging Media Sporting Holdings Ltd, UK (bidding for IPL franchise Rajasthan Royals) and Rs40 crore from MSM Satellite (Singapore) Pvt Ltd (bidding for TV broadcast contract).
 
The notices have been issued to former IPL commissioner Lalit Modi, BCCI president N Srinivasan, former BCCI secretary Niranjan Shah and the HDFC Bank.
 
In addition to imposition of penalties, the show cause notice also proposes confiscation of these deposits of Rs60 crore. IPL-2 was held in South Africa after the venue was shifted from India.
 
There have been allegations of ill-gotten money flowing into the T-20 tournament from foreign tax heavens.
 
Earlier, Minister of State for Finance SS Palanimanickam had told the Lok Sabha last Wednesday that ED had issued 12 show cause notices to BCCI and its officials for contraventions of foreign exchange laws involving Rs1,423.20 crore.
 
He had said 11 show cause notices involving an amount of Rs1,317.20 crore in the year 2011, and one notice involving Rs106 crore in the 2012 had been issued by the anti-money laundering agency in this regard.
 

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Tata Steel to raise funds for Odisha project

Tata Steel is setting up a six million tonnes per annum greenfield facility at Kalinganagar in Odisha in two equal phases with an investment of about Rs34,500 crore

 
New Delhi: Tata Steel needs to raise money for its ongoing expansions in Odisha, reports PTI quoting a top company official.
 
"We will obviously need to raise money because of our ongoing expansions in Odisha, but we have not finalised our plans," Tata Steel Managing Director HM Nerurkar told reporters on the sidelines of an award giving ceremony in the capital.
 
Tata Steel is putting up a six million tonnes per annum (mtpa) greenfield facility at Kalinganagar in Odisha in two equal phases with around Rs34,500 crore investment.
 
It has spent Rs3,700 crore up to March 2012 in the project, which was proposed to be funded through a 65:35 debt-equity ratio.
 
Tata Steel had earlier said that the first phase of the Odisha plant with 3 mtpa capacity would be implemented by 2014.
 
The steel maker has 6.8 mtpa steel-making capacity at the lone domestic facility at Jamshedpur. Overall, it has a total 27 mtpa capacity including operations in the UK and the Netherlands. It is expanding capacity of its Jamshedpur plant by three mtpa through brown-field expansion.
 
"It is for sure that we have not scaled down our modernisation plans and obviously we will require the funds to carry those out," he added.
 
Nerurkar said Tata Steel India would continue its effort on improving the performance. However, with difficult market conditions in Europe, it has taken various initiatives to reduce cost, rationalise the portfolio.
 
"I am sure these are challenging times and is not something that is going to pass tomorrow. But, we will fight it out and I am sure our colleagues in Europe will ensure that the situation changes," he added.
 
On steel demand, Nerurkar said, "If you take economic growth as seven per cent, then the industry should grow at eight per cent. I hope infrastructure scrtor sees growth on the ground, so that there is a fillip to the steel industry".
 

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Government inspecting chit-funds, multi-level marketing companies

Ministry of Corporate Affairs has asked RoC to probe the accounts of chit fund companies and certain MLM firms while the SFIO has recommended setting up of a specific central regulatory agency for implementation of Prize Chit and Money Circulation Scheme (Banning) Act, 1978

 
New Delhi: As many as 87 companies have come under the scanner for alleged irregularities related to chit fund schemes and money circulation in the garb of multi-level marketing, the government said, reports PTI.
 
The Registrar of Companies (RoC) and its Regional Directors have been asked to scrutinise the balance sheets and inspect the books of accounts and other records of these 87 companies, Minister of State for Corporate Affairs RPN Singh informed the Rajya Sabha.
 
In reply to a query whether the Ministry has asked RoC to probe the accounts of chit fund companies and certain multi- level marketing (MLM) firms, the minister replied in affirmative.
 
Singh said the directions have been issued on the basis of specific complaints received by the Ministry against these companies, which are "alleged to be carrying on the activities related to prize chit fund and money circulation in the garb of multi-level marketing".
 
The minister was asked whether complaints have been received from investors about being cheated through MLM money circulation schemes.
 
Singh further said that Serious Fraud Investigation Office (SFIO) has recommended setting up of a specific central regulatory agency for the implementation of the Prize Chit and Money Circulation Scheme (Banning) Act, 1978.
 
The Act is administered by the Department of Financial Services (DFS), which has constituted an Inter-Ministerial Group consisting of representatives from DFS, Ministry of Corporate Affairs (MCA), the Reserve Bank, Securities and Exchange Board of India (SEBI), Department of Consumer Affairs and Central Economic Intelligence Bureau.
 
The Group will draft model rules on MLM companies and on the prohibited schemes under this Act, and also frame clarificatory guidelines on how to distinguish between direct sales from disguised money circulation schemes.
 
To another question on whether the investigations were being referred to SFIO, rather than being conducted by RoCs, Singh said that multi-dimensional financial irregularities and frauds of complex nature are normally assigned to SFIO.
 
He said that SFIO is a "multi-disciplinary investigative agency comprising of experts from banking sector, capital market, company law, general law, forensic, audit, taxation, information technology etc."
 
The minister further said that various sections of the Companies Act empowers the central government to appoint inspectors for investigation of affairs of a company, but no extra-judicial power is bestowed upon the SFIO.
 
He said that RoC has powers to call for necessary information or explanation from any company, based on the documents submitted to its office by the company, and submit a report to the central government.
 
On the basis of RoC report, the government can order investigations into the affairs of the company.
 
In reply to another question on whether applications under Right to Information (RTI) Act are piling up in the various offices of the Corporate Affairs Ministry, Singh said that all RTI applications are attended to on a priority basis.
 

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COMMENTS

MOHAN

4 years ago

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Money chain companies are cheating laborers and retired people

Nano Excel MLM Chief's bail plea rejected by supreme court:


The Hon. Supreme Court Rejected bail application of Mr. Maddineni, Managing Director of Nano Excel MLM. Justice H.L.Dattu and Justice C.Prasad observed that Money chain companies are cheating laborer and retired people. Court asked whether these types of companies can be called “Blade” companies.

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