Regulations
Elder Pharma, embroiled in bribery case, is among the biggest defaulters and the Ministry is doing nothing
Elder Pharmaceuticals Ltd, infamous for its continuous defaults and fraudulent ways to manage the authorities, is again in the news. While the pharma company makes its corporate fixed deposits (FDs) holders run from pillar to post, the Central Bureau of Investigation (CBI) has alleged in a first information report (FIR) that Elder Pharma bribed BK Bansal, the Director General in the Ministry of Corporate Affairs (MCA) to prevent a Serious Fraud Investigation on Elder. CBI has arrested Bansal and a fixer. While Bansal was in custody, his wife and daughter have committed suicide.
 
The case of Elder Pharma also highlights lethargic attitude and approach from the Ministry officials, especially how they ignore plight of thousands of FD holders and earn quick benefits while shielding the company. Earlier, when Moneylife Foundation sent a memorandum, the plight of over 1,138 aggrieved investors in corporate FD holders to the Ministry, it merely acted like a post office and forwarded the memorandum to SFIO and its regional offices for further probe. (Read: Moneylife Impact: Ministry asks SFIO to look into Helios & Matheson; ROC in 3 other cases)
 
Moneylife Foundation's compilation showed that H&M accounts for the largest number of complaints. Besides H&M, companies, which have a large number of complaints, are: Elder Pharmaceuticals, Jaypee Group, Unitech, Plethico Pharmaceuticals and Bilcare Ltd. The other companies were: Neesa Leisure, Phadnis Infrastructure, Micro Technologies, Jaypee Infratech, Yash Birla group of companies and Omnitech Infosolutions.
 
 
 
According to a report from Indian Express, the CBI is probing the role of Anuj Saxena, the chief operating officer (COO) of the company and television actor in connection with a Rs20-lakh bribery case involving Bansal. "In its FIR against Saxena, the CBI alleges that his company bribed Bansal so that he does not order an Serious Fraud Investigation Office (SFIO) inspection against Elder Pharmaceuticals on charges of illegal collection of Rs175 crore from 24,000 investors. Saxena is believed to be abroad," the report says
 
In April this year, the Company Law Board (CLB) dismissed an application filed by Elder Pharmaceuticals seeking extension of time for repaying the dues to its FD holders. During the same month, the Bombay High Court granted time till August to Elder Pharma to generate funds for clearing dues of investors.
 
"If they fail to meet this deadline, the court is likely to appoint liquidators; given that over two dozen winding-up petitions have been filed against the company. Among those who have filed winding-up petitions are Tata Capital Financial Services, which had bought debentures worth Rs15 crore, and a horde of vendors and suppliers, who are owed amounts ranging from a few lakhs to a few crores," says a report from Business Standard
 
The report from Business Standard raises the more serious question on the cash flow of Elder Pharma and the company's inability to clear its dues. The report says, "In 2014, the company sold two of its divisions comprising 30 brands to Torrent Pharma for Rs2,004 crore. Experts cannot understand why despite this huge cash flow and its substantial assets, the company has not been able to meet its small commitments. Some write-offs and other entries in the company's books have also been questioned by its auditors."
 
Quoting a qualified opinion of auditor SS Khandelwal & Co, the news report says, "Pursuant to the authorisation of resolution passed by the board of directors, the company has written off trade advances of Rs176 crore and other advances worth Rs855.32 crore made to various parties on current account either during the year or in earlier financial years. We have been informed that there were no stipulations for repayments thereof. Further, the auditor said the reasons for writing off the advances and the other details were not made available to it. The auditor also raised issues on the writing off of capital, trade and other advances of about Rs145 crore."
 
According to news reports today Bansal's wife Satyabala (57) and daughter Neha (27) allegedly committed suicide by hanging themselves at their Mayur Vihar residence in east Delhi on Tuesday. On 16 July 2016, Bansal was arrested by the CBI in an alleged bribery case. Bansal had demanded Rs50 lakh from Saxena's Elder Pharma. However, the amount was brought down to Rs20 lakh. He was caught red-handed while receiving the second instalment of bribe worth Rs9 lakh from a Delhi hotel along with middleman Vishwadeep Bansal. CBI during its searches at eight locations in connection with the case claimed to have recovered over Rs56 lakh from Bansal, while Rs16 lakh were recovered from the Delhi-based middleman, the report says.

 

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COMMENTS

Dipakkumar J Shah

2 months ago

This company has sold certain business to Torrent Pharma for more than Rs.2200 crore and still they do not have money.It is no surprise that such companies can only flourish in our country. It is a pity that in spite of Bansal episode and lot of complains no authorities are moving. Just think what would have happened to Mr. Sexaena if he would be in any other country than India? No Hopes for any money of matured fixed deposits.A Special Investigation is required From Ministry of Corporate Affairs. Many Bansals are still silently working in MCA. Who Cares?

salim bootwala

2 months ago

elder pharma have looted the fixed deposit holders

Dipakkumar J Shah

4 months ago

You can go to C L B in case by filing Misc Civil Application. Where they transferred the assets and for he same. To my mind Many Bansal's are working silently. WHere flow of money goes to Upper level from R O C , MCA , R D and all offices. Corruption pervaded all through and black money is also increasing?? Who Cares?

Himanshu Gandhi

4 months ago

This company has sold certain business to Torrent Pharma for more than Rs.2200 crore and still they do not have money.It is no surprise that such companies can only flourish in our country. It is a pity that in spite of Bansal episode and lot of complains no authorities are moving. Just think what would have happened to Mr. Sexaena if he would be in any other country than India? No Hopes for any money of matured fixed deposits.

Omprakash Joshi

4 months ago

I think the CLB,THE MCA,and the Courts are not doing anything to Act against the fraudsters of Elder to recover the money owed to investors particularly the small investors with average fixed deposits in the region of 1 lac or so. The bureaucracy and the business community are alike the underworld and the political class in looting the common man and sharing the booty.Who can say that INDIA is a Superpower .We are like any other Banana Republic and need to outsource Governance to Singapore or Vietnam.

Dipakkumar J Shah

4 months ago

This also reminds me one another case . Total ignorance of Accounting Principle, Accounting Standards, Auditing Standards, Total Ignorance of Provisions of the Companies Act, Hid the material facts in Hon. Courts, High Court, a case of dividend paid out of capital , not from actual profit at all, mere book entry of profit in accounts , Paid Dividend only from this mere book entry of profit , never happened in last 150 years world over , for last 22 years this is going on and allowed by Registrar of Companies Gujarat since 1994 . Though on their record all evidences are there. Name of The Company is Ratnamani Engineering Limited Now Ratnamani Metals and Tubes Limited . Since 22 years all Directors are under safety net of Registrar of Companies , M C A all offices and Hon High Court also. No body has time to see any records and written petitions and all...... Company Representing under neath saying and impression that No Court Had at all passed any strictures for fraud. They are free. But Official Liquidaots office , part of M C A had passed the stricture that there is a fraud in accounts of 1992 and 31.03.1994. But Alas !!!!???? This is our India. Where criminals are free and small persons has to suffer a lot . He is without any power. What such Corporates has... God Save Us.

Himanshu Gandhi

4 months ago

In this country only people like Alok Sesxna (Elder Pharma) can roam freely. They would have been hanged if they were not lived in India. It is our tragedy that in the name of democracy such people cal prolong cases in courts for years together. And small investors have to suffer. God may give them the same fate.

Dipakkumar J Shah

4 months ago

Company is fraud company. What about C L B ANd M C A? ROC? R D ?

namrata.jashnani

4 months ago

Fraud company

Dipakkumar J Shah

5 months ago

This reminds me of one of my case of defualt in paying Money Back of deposit by Premier Automobiles Limited. Several years back. I file an application to C L B . Belive me before Petition Delivered to Premier Automobiles Limited a call came from Company to pay back the Deposit amount with Interest. How Company can call me before issue and delivery of Copy of Petition? You can very well understand the Modus of operandi of M C A Offices???!!

Dipakkumar J Shah

5 months ago

I think Biggest flop is Compliance Of Law in the offices of all Ministry Of Corporate Affairs , R O , Official Liquidators and Up to Higher Ministry and Secretarial level. Other Wise Bansal has not crept in?? All Kutki goes from lower to Highest Level Ministry. Take also example of Ratnamani Engineering Limited well back in 31.10.1992 and also 31.03.1994 where , for last 150 years world over Not Happened Like A case of Dividend paid out of capital, illegal payment of dividend, from mere book entry of profit not ever received in cash from any body. Even If I write to RT O C for last 22 years , no reply and also giving reply of court cases which were dismissed without any hearing of the subject matter at all these years???!!! Company giving case references. But actual fact of their records do not come out. Not only this but at Registrar of Companies At Ahmedabad level they are feeded for all these years . There complete violation of the Companies Act not only this but big accounting fraud with connivance of All and Law .!!Nothing more can be expected from Ministry of Law Compliance and all even Judiciary.

REPLY

Dipakkumar J Shah

In Reply to Dipakkumar J Shah 5 months ago

All flow of money goes from Lower Office to Higher Level. Nothing more can be expected for any for corruption in department. Only Name if Given corruption free. My Own Dictionary meaning for corruption "Means Not To Take Any action AMounts To Corruption".

K.G.Krishnamurthy

5 months ago

It is surprising that the Government is not taking any action against the company's directors. Government should extradite the COO Mr. Anuj Singhal and attach their personal assets and payback the aggrieved investors.

Dipakkumar J Shah

6 months ago

We have created MP and making Laws, MInisters are doing their businesses by helping the Companies Directors and like. You will notice in near future Like Vijay Mallya , another Man Named Shashi Ruia and Ravi Ruia , of Essar Group will find in the name. They are there to siphoning the funds of Shareholders. Doing no 2 business and making losses in the companies.........God save us from all.

Bhupendra Shah

6 months ago

my name is bhupendra p shah..my self and my family members have deposited total rs.4,40,000.00 with elder pharmaceuticals ltd. all the fds have matured and sent back to elder pharmaceuticals ltd through m/s bajaj capital ltd bombay lot of promises are made by elder but as on date they have not refunded the money nor the interest.rather various interest cheques were bounced.we are senior citizens and banking on this money only.i dont understand as to why courts and c l b ,finance ministry are not strict with the company directors and force them to pay to the fixed deposit holders.rather they, directors, must be greasing their palms otherwise situation can not be dragged to such a long time.what mr.jaitly,so called finance minister and resp.modiji our pradhan mantri are doing.do they not read papers,see news and come to the rescue of few hundred thousands depositors.the present situation forces us to believe that present govt.has no eyes and ears,they are dumb.why the courts do not take strong action against chairman,directors and put them behind bars,like mr.subroto roy of sahara,and to release them after they have complied withn the court orders.can someone come forward and a smallm depositos like mine.

Bhupendra Shah

6 months ago

my name is bhupendra p shah..my self and my family members have deposited total rs.4,40,000.00 with elder pharmaceuticals ltd. all the fds have matured and sent back to elder pharmaceuticals ltd through m/s bajaj capital ltd bombay lot of promises are made by elder but as on date they have not refunded the money nor the interest.rather various interest cheques were bounced.we are senior citizens and banking on this money only.i dont understand as to why courts and c l b ,finance ministry are not strict with the company directors and force them to pay to the fixed deposit holders.rather they, directors, must be greasing their palms otherwise situation can not be dragged to such a long time.what mr.jaitly,so called finance minister and resp.modiji our pradhan mantri are doing.do they not read papers,see news and come to the rescue of few hundred thousands depositors.the present situation forces us to believe that present govt.has no eyes and ears,they are dumb.why the courts do not take strong action against chairman,directors and put them behind bars,like mr.subroto roy of sahara,and to release them after they have complied withn the court orders.can someone come forward and a smallm depositos like mine.

REPLY

Dipakkumar J Shah

In Reply to Bhupendra Shah 6 months ago

MCA Can never improve. It was only Mr M C Duggar CLB chairman, Courageous Man, Cultured man , who took my case , being C L B member and in Chair, told me inOffice in presence of One Important Personality Advocate of Ahmedabad Famed. Mr Duggar Told me that I should not tell argue any thing. Immediately asked the :Lawyer , As does in any defending the case , pur the allegation whatever you think, wrote as many as 20 allegations without any proof ???!! Such practice in Civil Procedure Code should be restricted. Asked the lawyer to first prove all allegation made in affidavit in reply. He also asked the Lwayer that , if he can not prove all allegations made on me , he should not appear before him as an Advocate???!!! Such persons are very rare in Judiciary. In my one case No CriminalMisc Ap No 9684 of 2005 see minutely and also see connected order in 5639 of 1994. Upon all allegations of Advocate written in order see the words , worth to be noted , without any proof Hon.Justice Mr J M Panchal wrote the original order without seeing the documents on record !!! The Advocate Name is Mr S V Raju Son of Justice Mr V B Raju !!!?? I was told by hand to sit down when order was dictated??? If told in open court "Contempt of Court would be raised". There is one Complaint pending with R O C Gujarat Ahmedabad of a company Name Ratnamani Engineering Limited as back as in 1994 complaint was filed by me against bthe company stating mere book entry of profit was entered in books of account , there was no profit in real, out of this amount dividend was paid for Two Years 31
.10.1992 abd 31.03.1994. All R O C are enjoying fruits from Company doing nothing in this matter. On the contrary some thing else is replied by ROC saying my all cases has been dismiised?? Not tried to look in to the matted for all these years?? There is no compliance of Law but office is for kept for collection money .......God save us.

Internet links biggest fear for Indians on the move: Survey
Not high roaming bills but the lack of internet connectivity is the biggest fear of Indians while travelling, a survey revealed on Wednesday.
 
Nearly 34.5% of people feared the lack of mobile network while travelling while just 6.9% are afraid of high roaming bills, said the survey conducted by web brower Opera and lifespan accommodation company Wudstay.
 
"Internet connectivity is an important pre-requisite for travellers. People prefer being connected to the internet in order to share updates when on the move," said Sunil Kamath, Vice President, South Asia and Southeast Asia, Opera.
 
About 7.8% Indians are concerned about losing their smartphones during the journey.
 
The survey also showed that 32.8% Indians use mobile data for social media posts while 28.4% use their mobile data to find information about the places they are visiting. 
 
Nearly 16.4% people use their mobile data to stay connected with their family and friends, whereas 17.2% of people spend their data using GPS while travelling.
 
The survey also revealed that about 13.8% people are willing to go without food for an entire day for a lag-free internet connection. 
 
Interestingly, 14.7% will give up on showering during their entire vacation to enjoy a great internet connection.
 
While 33.6% of people reported they are willing to sacrifice drinking for an evening to have a good internet connection another 28.4% will not use a restroom for six hours to have a good internet connection. 
 
"Technology drives the experience of the modern traveller. This survey has helped us identify what is essential for our customers," added Prafulla Mathur, Founder and CEO, WudStay.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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Mad IPO Rush: Should Retail Investors Jump in?
Ever since the FERA (Foreign Exchange Regulation Act) dilution issues of end-1970s, retail investors have believed that applying for initial public offerings (IPOs) of companies is the best way to start equity investment. Strangely enough, 25 years after India scrapped controls where government decided the listing price, investors cannot get over the temptation to plonk money in IPOs. The memory of losses in 1992-93 (IPO mania), 2000-01 (dotcom bubble) and the 2007-08 (big global Bull Run) is quickly forgotten after a string of positive listings. 
 
Last week’s mega listing of Quess Corp, whose Rs 400 crore IPO was oversubscribed 144 times and listed at a 58% premium to offer price, has got people’s eyes gleaming again. The Quess success comes after a spate of positive listings such as those of Mahanagar Gas, Ujjivan, Thyrocare Tech, Dr Lal PathLabs, Alkem Labs, TeamLease Services, etc. Should one explore IPOs again? Which ones should we invest in? These questions are being asked again, and it is time to reiterate Moneylife’s view on IPOs. 
 
We believe that there will always be a few lucky breaks when it comes to IPO investment; but, as an investment product, it is not worth the risk. This is because the promoter and the investment banker fix a price and time to maximise their own gains. This cannot possibly be good for the buyer; moreover, an IPO that leaves money on the table is considered mispriced. IPOs are also prone to hype, manipulation and dubious practices, since there are many gainers from a successful listing. The truth is that smart investors looking for long-term value can succeed only by carefully chosen stocks at a reasonable value and not by chasing IPOs based on pumped-up offer documents and a few successful listings.

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COMMENTS

Mohan Sivanand

6 months ago

The very fact that you don't see IPOs during bear-market phases only shows that they're biased towards the seller, not the investor. Even so, I did enter one IPO (V-Guard) in my several years of investing , but only because I have happily used V-Guard's good products. But all I got was 123 shares for maybe Rs80 each in 2008, I think. I thought that Rs80 was costly when the price almost halved the next year. I did buy more. As for V-Guard, all those "small" prices are history now, but the point is to avoid IPOs and wait for a bear market to buy shares at a huge discount. Otherwise your money usually does better in a liquid fund or even an FD.

Arun Adalja

7 months ago

sebi s new system of allotment does not give benefit to retail as they do not get any share.it is wastage of time and money.retail investors will leave primery market if sebi does not change system.

sundararaman gopalakrishnan

7 months ago

Well said..the retail investors are taken for a ride by promoters and investment bankers by pricing IPO's very high,keeping them high for a couple of weeks so that they can exit and the retail investor is left in the lurch

Ajay Prakash

7 months ago

If patanjali goes IPO route, then things will turn ugly.. for shit companies like l&t Infotech, IPO is soft exits for promoters #blindmoney

Ajay Prakash

7 months ago

If patanjali goes IPO route, then things will turn ugly.. for shit companies like l&t Infotech, IPO is soft exits for promoters #blindmoney

R Balakrishnan

7 months ago

People are happy to lose money. Even if they win, they get some 11 to 20 shares on allotment. Investors who lose, deserve to. Year after year, we tell them, they think they know better. Good luck to them

REPLY

Meetheen Mundeth

In Reply to R Balakrishnan 7 months ago

I am in Saudi Arabia and happened to see your 1.5 hr video on stock analysis. Really surprised to see the contents therein. Who can give me an advice on my portfolio? I want to make it lean n efficient. Thanks in advance.

pradeep gowda

In Reply to R Balakrishnan 7 months ago

They should read The Intelligent Investor Once.

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