Citizens' Issues
Haryana government drops chargesheet against Khemka on Vadra issue
 In a major relief to senior IAS officer Ashok Khemka, the Manohar Lal Khattar-led BJP government in Haryana has dropped the chargesheet against him in the controversial land deal case relating to Congress president Sonia Gandhi's son-in-law Robert Vadra.
 
Official sources on Wednesday said Chief Minister Manohar Lal Khattar cleared the file to drop the chargesheet against Khemka last week.
 
Khemka was chargesheeted in December 2013 by then Congress government in Haryana led by Bhupinder Singh Hooda for "administrative misconduct" and "exceeding his jurisdiction" in cancelling the mutation of the Rs.58 crore controversial land deal of October 2012 between Vadra's company Skylight Hospitality and realty giant DLF.
 
The cancellation of the land deal's mutation was done in October 2012 by Khemka.
 
The dropping of the chargesheet was based on the reply submitted by the officer to the Haryana government and a personal hearing given to Khemka by Chief Minister Khattar on October 6 this year.
 
Khemka, who had blown the lid off the shady land deals by Vadra and his companies in Haryana's national capital region (NCR) area, was transferred from his post by the previous Hooda government as he was in the process of initiating action against Vadra.
 
Khemka had also ordered an inquiry into the undervaluation of land deals done in four districts in Haryana, adjoining Delhi, by Vadra.
 
Both orders were passed by Khemka after he had been transferred as director general-consolidation and inspector general-registration by the state government. 
 
While he was transferred on October 11, the orders were passed on October 12 and 15. Khemka had claimed that the orders were passed when he had not relinquished charge of these posts.
 
Khemka was also charged with going against service rules by going to the media openly and even criticising government policies. Khemka had freely given TV and other media interviews as Vadra's land controversies came out.
 
Embarrassed by Khemka's actions and statements, the Hooda government had set up a three-member committee of senior IAS officers to look into the issue. The committee, in its report, had stated that Khemka's actions amounted to administrative misconduct and exceeding jurisdiction. 
 
The committee submitted its report even without calling or examining Khemka once.
 
Khemka's 105-page reply to the committee's report, in which he highlighted various other land scams and sham deals and companies associated with Vadra and other influential people, was not accepted by the Haryana government.
 
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.

User

Reliance Infra to sell cement, road businesses
Industrialist Anil Ambani-led Reliance Infrastructure on Wednesday said it has decided to sell its 5.8-million-tonne cement business, while initiating the process to hive off the Rs.8,800-crore investment it has made in 11 road projects across seven states.
 
The steps, the company said, were in tune with the renewed focus on the defence space for growth.
 
"The 5.8 million tonnes per annum cement business and related assets will be disposed off through a formal process. The Company has short-listed seven potential buyers from a total of 15 parties that submitted preliminary expressions of interest," the company said.
 
As regards the roads projects, the company said an investment of Rs.8,800 crore had already been made in 100-percent-owned, 11 revenue-generating projects, running into 1,000 km across seven states
 
This, the company said, will be monetised, adding: "A formal process has been initiated and has attracted significant interest from strategic and portfolio institutional investors in India and overseas."
 
Addressing the shareholders later, Ambani said: "Our capex (capital expenditure cycle) is now complete. Over Rs.30,000 crore has been spent in the last six years and all projects are operational. In the next financial year, you will see the full impact of cash flows."
 
He also reiterated that defence and smart cities will be the two drivers of future growth.
 
The company has already announced that it is acquiring Pipavav Defence to pursue growth in this segment. Recently, it was allotted 290 acres land in Mihan, near Nagpur in Maharashtra, to make aerospace equipment and naval combat systems.
 
The company has also entered into a number of global pacts for strategic partnerships.
 
In the smart cities space, Ambani made a reference to the government notifying 100 cities under the project and said: "With our group capabilities in utilities, transport, telecom, etc we will be able to provide one stop integrated solution.
 
At the same time, he added, there were multiple challenges in infrastructure and public-private partnership, with major regulatory uncertainties, procedural delay, legal deadlocks and the lack of fulfillment of promises and appropriate risk-sharing mechanisms.
 
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.

User

Strategic debt restructuring: Banks may face large losses, massive surge in stressed asset of 7 companies
If banks fail to attract buyers for these troubled companies within 18 months, they would face a large Market-To-Market hit on their debt-turned-equity holding, apart from a massive surge in stressed asset formation, says a Religare report 
 
Over the past five months, banks have evoked strategic debt restructuring (SDR) in seven companies carrying total outstanding debt of Rs42,400 crore, says media reports. However, SDR simply kicks the can down the road and without adequate provision, bank may face large mark-to-market (MTM) losses and could witness massive surge in stressed assets, says Religare Capital Markets Ltd, in a research note.
 
As per media reports, banks have so far evoked SDR in seven companies or projects worth around Rs42,400 crore n in the last five months. This includes, Electrosteel Steels with a debt of Rs10,240 crore, Lanco Teesta (Rs2,400 crore), Jyoti Structures (Rs2,360 crore), Monnet Ispat (Rs11,710 crore), Coastal Projects (Rs3,250 crore), Visa Steel (Rs3,090 crore) and IVRCL at Rs9,390 crore.
 
"The biggest drawback of SDR is that banks are not required to carry adequate provisions on their exposure. Thus, should they fail to attract buyers for these troubled companies within the stipulated 18-month period (in itself an uphill task), banks would face a large MTM hit on their debt-turned-equity holding in the ailing company, apart from a massive surge in stressed asset formation as the balance SDR-linked debt slips into non-performing assets (NPAs)," the research note says.
 
 
"We believe this number will only increase as stress on the economy and on cyclical sectors like metals persists. Of the seven, three companies belong to the metal sector and have a total debt of Rs25,000 crore – given headwinds to the sector in the medium term, banks will find it hard to attract buyers. In the event of a significantly discounted buyout, banks will have to take write-offs on their equity/ debt exposures. We expect large write-offs in reviving not only the three metal companies but also the EPC and power companies," Religare said in the report.
 
SDR, restructuring and 5:25 – all these schemes merely push back the problem 
According to the research note, the biggest drawback of the SDR mechanism is that banks do not carry adequate provisions on their exposure. Equity shares are exempt from MTM and the remaining debt will retain its existing asset classification, i.e. standard restructured assets (with 5% provision) in most cases, it says. 
 
In cases where equity conversion takes place at face value, Religare said, the MTM hit will be very high as the underlying value is far lower (30% in the case of Electrosteel Steels where conversion was at Rs10 vs. the market price of Rs3). According to a report from Financial Express, lenders of the loss making, Kolkata-based Electrosteel Steels have decided to convert Rs2,507.57 crore of loans into shares at Rs10 apiece. 
 
"Banks are currently seeing high slippages from assets restructured two-three years ago. The growing SDR and 5:25 restructuring drive could invite a repeat of this situation. In our view, SDR refinancing should be included in stressed asset formation in order to bring in greater transparency on underlying trends in asset quality," the report added.

 

User

COMMENTS

Raj K Swamy

1 year ago

Without collusion politician/babus/borrower/middlemen, can these kind of loans been given and then allowed to continue for so long? Unfortunately it is the poor of the country who pay the price of the corruption- the money could otherwise been utilised for their education/healthcare/economic development. And the 24/7 media is fooling the people by crying hoarse about minor-issues such as return of awards etc.

vnrao

1 year ago

MOst of these promotors flybuy night operators without any backgrond encouraged by corrupt congress netas and banks have lent money basing on letter of intent eithout safegaurding these promotors diverted money should be booked

Gupta

1 year ago

It is a laughable claim to say these are standard assets. These are complete write offs in most of the above cases. In most other countries, regulators would take the bank to task for granting such loans and then for not making 100% provision. This is the only area where RBI is lagging way way behind global regulators, though it leads the world in other areas. But this is beyond RBI to fix. If they don't give these ever greening opportunities to banks, almost all PSU banks and many private banks would go bankrupt as their stressed assets are far in excess of their capital. RBI and Rajan are smart enough to understand these problems. But the solution is beyond them. This is result of peak levels of "crony capitalism" practised by UPA. This is far deeper problem than 1997-2002 and will take long time to heal. That is why a non-UPA Govt is required to sustain in power for more than 5 years, despite its other deficiencies. But we will certainly run out of patience and throw them out of power soon and bring back the Gods of corruption to undo all the clean up done in 5 years.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)