Consumer Issues
HC flays State Bank of Travancore for 'bad ways' of loan recovery

State Bank of Travancore took possession of a commercial building, earned rent of Rs19,500 in two years and then sold the building for Rs18.7 lakh to recover a loan of Rs15,000

 
Kochi: Coming down on a bank for meting out 'unfair deal" to a client by selling his commercial building for Rs18.7 lakh to recover a loan due of Rs19,500, the Kerala High Court has reminded nationalised banks that they are only engaged in money lending and should not take up real estate business, reports PTI.
 
The observation was made by a division bench comprising Justice CN Ramachandran Nair and Justice CK Abdul Rahim directing the State Bank of Travancore (SBT) Chala branch to repay Rs6.5 lakh to a loanee who had availed Rs15,000 as loan some years ago.
 
The bank filed a suit for recovering Rs19,500 with interest after which the petitioner's commercial building was taken into possession by it. The building fetched Rs19,500 as rent within two years after which it was sold for Rs18.7 lakh by the bank.
 
The petitioner sought refund of the excess amount which was turned down by the bank. It also said capital gain tax had to be paid on the sale of the building.
 
The bench held that the transaction was an 'unfair deal at the hands of the bank which made a huge profit at the expense of unfortunate people'.
 
'While the clever ones get all the benefits and the banks writes off their dues, the sick and weak are exploited,' it said.
 
The court directed SBT to repay Rs6.5 lakh to petitioner Sobhana of Thiruvananthapuram. Her husband, Thamburaj, who was also a petitioner, died during the pendency of the case.
 

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India's HNWI population set to reach 4.2 lakh by 2015

Swiss private bank Julius Baer, in the report said that wealth creation in India is primarily driven by the extension of infrastructure facilitates in the country and labour moving out of agriculture sector

 
New Delhi: The number of high net worth individuals (HNWIs) population in India is set to reach 4.2 lakh by 2015 with a total wealth of $2.58 trillion, reports PTI quoting a report by Swiss private bank Julius Baer.
 
The report, which focuses on wealth creation in 10 of Asia's biggest economies, said the number of HNWIs in Asia would reach to 2.67 million by 2015 and the combined assets is estimated at $16.7 trillion.
 
"The global macroeconomic backdrop has become more challenging, however, Asia has remained resilient thanks to strong fiscal fundamentals, improved economic policy making and greater diversification of trade links," the report noted.
 
"Domestic demand, supported by robust job growth, remains a key pillar to Asia's growth dynamics," it added.
 
The report projected that China would be the home of 1.46 million HNWIs with a wealth of $9.3 trillion.
 
In India, the report said that wealth creation was primarily driven by the extension of infrastructure facilitates in the country and labour moving out of agriculture sector.
 
"Once again China is set to dominate in terms of number of new high net worth individuals followed by India and South Korea," the report noted.
 
In HNWI population growth terms, Indonesia is expected to register a 25 per cent compounded annual increase, the highest in Asia, mainly on account of "flourishing domestic business environment."
 
Among other countries, super rich wealth in South Korea is expected to reach at $1.12 trillion, Hong Kong ($728 billion), Taiwan ($615 billion) and Indonesia ($518 billion).
 
The report, which also covered high end vendor across four main cities such as Hong Kong, Shanghai, Singapore and Mumbai, noted an 8.8 per cent growth in prices since the last report.
 

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COMMENTS

Nilesh KAMERKAR

4 years ago

After all only a Swiss Bank may know how many HNIs India really has . . .

raj ahluwalia

4 years ago

what is the definition of HNWI in India. Pls enlighten...

SEBI bans seven entities for unfair trade practices

SEBI barred Chandra Financial Services, Kundan Leasing & Finvest, Jay Investrade and Maruti Securities besides three individuals -- Harsh Shirish Maniar, Jay Shirish Maniar and K Varadarajan from stock markets for allegedly indulging in unfair trade practices

 
New Delhi: Securities and Exchange Board of India (SEBI) has restrained seven entities, including three individuals, from the securities market for allegedly indulging in unfair trade practices in the shares of Temptation Foods, Bang Overseas, Cals Refineries and two other companies, reports PTI.
 
The banned entities are Chandra Financial Services, Kundan Leasing & Finvest, Jay Investrade and Maruti Securities besides three individuals -- Harsh Shirish Maniar, Jay Shirish Maniar and K Varadarajan, according to the SEBI order.
 
The market regulator found these entities were involved in circular trading of shares of five companies -- Temptation Foods, Bang Overseas, Confidence Petroleum India, Cals Refineries and Shree Precoated Steels (presently known as Ajmera Realty & Infra India).
 
Chandra, Kundan, Jay, Harsh Shirish Maniar, Jay Shirish Maniar and Maruti have been restrained from the securities market till 3 June 2013.
 
Considering the facts and circumstances of the case and quantum of trading done by them, SEBI said it would be appropriate to restrain them from "buying, selling and dealing in securities and accessing securities market for a period of four years from the date of interim order dated 4 June 2009".
 
Since Varadarajan was not covered in the interim order dated 4 June 2009, the market regulator has also restrained him from the securities market for three years. The same would be effective from the date of this order.
 
SEBI had found inter-linkages among certain entities dealing in these five scrips in the form of off-market transactions as well as synchronised deals. All these transaction happened between August 2007 and February 2009.
 
Meanwhile, SEBI has discontinued the directions passed by it against HSM Financial Services and Shanti Financial Services related to these five scrips.
 
In the order, SEBI has also made references to market rigging by broker Ketan Parekh.
 
The market regulator in a separate order also barred Anita Deepak Dalal from accessing the securities market for 18 months over alleged trading irregularities in the scrips of three entities -- Bang Overseas, Confidence Petroleum India and Cals Refineries.
 
"... hereby restrain Anita Deepak Dalal from accessing the securities market and further prohibit her from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner for a period of 18 months." SEBI said.
 
As per the order, Dalal was found to be involved in creating artificial volumes in the scrips of the three entities.
 
SEBI noted that Dalal was not covered under the ad interim ex-parte order passed by the regulator in June, 2009 that restrained certain 'connected clients' from accessing the securities market and further prohibited them from dealing in them.
 
The regulator observed that "the trades of the noticee (Dalal) have to be considered as part of overall plan of manipulative trading in the five scrips amongst the connected clients".
 

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COMMENTS

NSriramamurty

4 years ago

In USA,they might have been Penalised by $ 10-50 Million .In India- SEBI's Action of simply Banning Illegal Activists -Causing Heavy Losses to small Investors - is nothing short of Favouring them avoiding Heavy Penalties.

Vaibhav Dhoka

4 years ago

SEBI's action is eyewash for a common investor.SEBI should come out with data about how much money of ordinary investors is lost in SHARE GHOTALA by brokers,how much money was recovered from such scamsters and how much is lost.God save us from these SHARKS.

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