Companies & Sectors
GMR Energy may have to wait before it plugs into Chhattisgarh

GMR Energy’s Chhattisgarh power project’s funds may be disbursed only when the coal linkage is in place and a certain amount of capacity is tied up

GMR Energy, a subsidiary of Bengaluru-based GMR Infrastructure, is in the advanced stages of financial closure for its Chhattisgarh project. However, sources from one of the main banks funding this project say that funds will be disbursed only when the coal linkage is in place and a certain amount of capacity is tied up.

The infrastructure major plans a 1,200MW power plant in Chhattisgarh. This power plant will be coal-based and the fuel supply is likely to be sourced through coal linkages. While the financial closure for this project may be completed, the funds would be disbursed only when the linkage is in place. The total project cost is quoted at around Rs8,200 crore.

"Even if the financial closure is completed and the related documents are signed, the funds would be disbursed only when the coal linkage is in place," said a source from one of the main banks funding this project.

According to sources, this bank has also insisted on a certain percentage of capacity to be tied up before the funds are availed of. The capacity for this project remains untied.

The coal linkage for the Chhattisgarh project will be tied up when the coal linkage allocation for the 12th Five Year Plan (FY2012-17) projects takes place. "We are positive on the coal-linkage side and the allocation can be expected anytime," said Raaj Kumar, CEO, energy sector, GMR group. He refused to comment any further on either the coal linkage or the untied capacity issues.

While talking to Moneylife last month, Mr Kumar had stated that financial closure for its Chhattisgarh power project and the Vemagiri (Andhra Pradesh) power expansion project is likely in August. "Axis Bank is the lead bank for the Chhattisgarh project and IDBI Bank is likely to fund the Vemagiri expansion project," he had then told us.

The linkage and untied capacities may be an issue with the fund disbursements; however, Axis Bank seems comfortable in signing the financial closure documents without these two requirements in place.

Sources from Axis Bank stated that the signing process for the financial closure is under process. "We have underwritten the debt and now we are in the process of down-selling it. Only when the down-sell happens will we be able to execute the final documents," said the source. Reportedly, the down-selling has received a good response.
 

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ING Vysya Bank appoints Arun Thiagarajan as chairman

ING Vysya Bank Ltd appoints Arun Thiagarajan as the part-time chairman of the company for a period of three years. He succeeds the distinguished banker KR Ramamoorthy. Mr Thiagarajan, who is educated abroad both in engineering and management, has had a successful career in the corporate world over the last forty years. His association spans across companies like Asea Brown Boveri, Wipro and Hewlett Packard in different capacities, inclusive of the position of president and vice chairman.

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KGN of Pune offers 1% interest a day, except holidays!

KGN and its related companies are running what looks like a pyramid scheme through a multi-level marketing chain in Pune under different names, ensnaring gullible small investors

One of the most common ways people lose their hard-earned money is by investing in pyramid schemes. These companies essentially pay a very high rate of interest until one day they go bust. One such company, that claims to invest money in land, is offering an interest of 1% to 2% daily on investments. Interestingly, it does not pay interest on Sundays and public holidays, giving an impression that your money is at work on regular working days!

The company, KGN Sales and Services, has its office in the posh Arora Towers at MG Road in Pune. It also operates under two different names, KGN Land Trading and Kosmic Developers. Both KGN Land Trading and Kosmic have similar looking websites, with a palatial bungalow on the home page. These websites do not allow easy access to outsiders, except to the homepage, the 'about us' page and bank details. KGN Sales and Services has accounts in Axis Bank, Indian Bank, Oriental Bank of Commerce and State Bank of India (SBI) and one account in IndusInd Bank. Kosmic Developers has two accounts with HDFC Bank and one each with SBI and Union Bank.

KGN has been using SMS to spread its network. One SMS reads "Earn daily 1%-2% inv. 5000/5000 & multiples. Call 020-26052013/13. (also available 12 months inv plans) 10/12 pd cheques+agreement."

We called on the numbers provided. The lady who answered told us of various investment plans. One plan is if you invest Rs5,000, after 200 working days, excluding public holidays, you will get Rs8,000. In other scheme, if you invest Rs1,000, after 120 days you will receive Rs2,000. However, under this scheme, KGN will deduct 1% and service charges if you invest more than Rs1,000.

The lady from KGN also told us that the company gives post-dated cheques and signs an agreement at the time of investment itself. After enquiring about how the company can offer such an interest rate on a daily basis, the lady said that KGN invests the money in land and thus can afford to pay such interest rates.

What's interesting is that the company does not have any source of earning on a day-to-day basis, but is still paying interest on a daily basis and nobody is questioning the claims.

The login page on the websites asks for one 'user' name, a 'sponsor user' ID, a 'leg referral' user ID and related details. All this is nothing but a perfect setup used by almost all multi-level marketing companies. 

This MLM scheme is in full swing in and around Pune. One investor, a dentist by profession, said that some of his early post-dated cheques given by KGN were honoured. However, in a classic situation that befalls all pyramid schemes, cheques started bouncing later. KGN also promised him that if he could bring in more investors, then they will give him commission. However, despite bringing in four-five investors, the dentist was denied any commission.There is not much information available about the promoters of KGN.

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COMMENTS

H J ZALTE

6 years ago

Your company changing commitment. It commited me 2% daily return for Rs.2.50.000/- (i.e. 5000/- per day), which changed to rs. 4000/- per day, which further changed to 4000/- per working day, which further changed to 40,000/- per month, which later on stopped w.e.f. Jan'2011. My cheques also found issued stop order. Your MD speaking bad words on phone liks "BhenChod" etc.

investor

6 years ago

He is really cheat, i know him personally very well. He doesn't invest in real estate as he promises. He is waiting for huge fund to accumulate, then he will runaway. Dear investors don't waste your hard earned money to nourish fraud peoples like Alim Khan. Shame on You Aalim Khan.

MLD Team

6 years ago

Both Subhash Lashkar and Sukkumar Doshi are one and the same person. or is it the proprietor of KGN who is posting comments? Please come out in open, if you think what you are offering is legitimate then there is no need to hide behind other people's name.

subhash lashkare

6 years ago

Initially the company had a monthly plan offering returns for a year. I have received all the payments regularly and now the company is paying good returns. The company has already finished two projects in Konkan area. One in Tamhini Ghat and second in Roha where the company purchased good number of plots and sold and a profitable rate. Now the company is starting their new project in Mandangad, Ratnagiri (Palghar). This land is of 210 acres. 1/2 or 1 acre plots would be demarcated and would be sold to general public on an easy EMI plan. The company expects a big turnover and huge profit in the said project. I have personallly visited the site and inspected all the legalities of the project and papers. Good investment as of today.

REPLY

Arjun Vithoba Shinde

In Reply to subhash lashkare 5 years ago

Pl I want to discuss personally so can I get your email Id and cell Number, My age is 40, & I am in needful of yr suggestion, I do the job in private co.as a Accountant at MIDC Ranjgaon ,Dist Pune.

sukkumar doshi

6 years ago

i am an investor with Kosmic Developers and have visited their project in Ratnagir. The company is genuine and is regularly paying the returns for the past 3 months. After monsoon the company is starting development of its land in Ratnigiri which is 210 acres. Plots would be made and sold at very lucrative prices.

malq

6 years ago

Essentially, yet another scam it appears - but with a twist - the invested amount is so small, that if a person loses all or some of the interest, he/she will not chase matters and will be happy if the principle is returned.

deepak

6 years ago

There are hardly any regulations in India to prevent such frauds. RBI has put the responsibility of doing checks on banks. As per this guidance, when large number of checks are issued to public and small cash deposits are collected in the account, banks are required to conduct due diligence.

However, for banks getting large CASA deposits from such companies are more attractive than doing due diligence, which helps this agencies.

Refer the following link for RBI guidance-

http://www.suchetadalal.com/?id=c1604f58...

k a prasanna

6 years ago

Fraud of first order. Police should take action before it is too late.

REPLY

K Narayanan

In Reply to k a prasanna 6 years ago

In which country you are,Sir.Police are unable to investigate theft,murder and other crimes.They have people only to be on bandobust duty when the so called ministers are coming for public meeting.Police avoid registering FIR in theft cases.You will voluntarily go to an organisatiion promising 2% interest per day or per month(you will be so greedy)and you expect police to come to your rescue when they default.You are asking sue moto action by police.If you ask me,if you voluntarily invest your money at a fabulous int rate offered by some cos then it is for you to pay the price.Don't overload the already overloaded system.Take Satyam.Even after 18 months charge sheet is not filed and he is out on bail.

RAHUL SINHA

6 years ago

hi,there are numerous cases of these kinds of frauds and still our government is sleeping.this is ridiculous.people should know that anyone claiming to give you more than 12% interest a year is doing somekind of fraud as it is nearly impossible in current scenario.

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