Regulations
HC issues notice to SEBI, Sahara Q Shop
The Lucknow Bench of the Allahabad High Court also directed union and state government to apprise the Court about what has so far been done in the matter of issuance of Sahara Q Shop bonds or advances
 
The Lucknow Bench of the Allahabad High Court on Monday issued notice to market regulator Securities and Exchange Board of India (SEBI) and Sahara Q Shop Unique Products Range Ltd over the issuance of Sahara Q Shop bonds or advances. Lucknow-based Amitabh Thakur, a former Indian Police Service (IPS) officer and social activist Dr Nutan Thakur had prayed for enquiry in to the issuance of the bonds or advances by Sahara Q Shop.
 
The bench of Justice Devi Prasad Singh and Justice Ashok Pal Singh also directed the counsel of the union and state government to seek instructions and apprise the Court about what has so far been done in this matter. Next hearing shall be on 8 October 2013.
 
The Thakurs had filed a writ petition before the High Court. The Thakurs bought two Sahara Q Shop advances where they were told by Sahara Q shop staff that after six years, they would get Rs2,335 in return of Rs1,000 deposited by them. A Scheme Chart was provided which said that Rs1,000 would have a redemption value of Rs2,354 after six years. But the general terms and conditions (of the scheme) say that this plan is merely an advance for buying goods, the Thakurs said.
 
Finding this inconsistency and coming to know of the Supreme Court Judgement in Sahara India Real Estate Company vs. SEBI, the Thakurs sent representations to SEBI, Ministry of Corporate Affairs and Ministry of Consumer Affairs to enquire into the collection of money
through Sahara Q shop scheme, in the interest of investors but nothing has been done so far, forcing them to file the writ petition.
 
In their prayer, the Thakurs have requested the High Court, to direct SEBI, the ministries of Corporate Affairs and Consumer Affairs to enquire into suspected or alleged improprieties in the Sahara Q Shop Bond or Advances issued by Sahara Q Shop Unique Products Range and to take appropriate legal action accordingly.
 

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COMMENTS

Bhomeshwar Shah

3 years ago

I completely agree with the facts mentioned by Shri Amitabh Ji Thakur. In addition to this, I would also like to mention that initially this has been made by converting OFCD of two companies of sahara group for which case is under investigation with SEBI and Justice to investors with Supreme Court of India.

Nidhi Kapoor

4 years ago

I feel SEBI has go just one job in their checklist, common SEBI there are many things to be done with many people, try grab’ em as well. Why you grabbing the descent one who is supporting you in all the processes of inquiry, if you have guts then try to snatch money from the corrupt Big Wigs.

sameer

4 years ago

Well… the concept of Sahara Q shop was crafted considering the old ordinance then why the hell SEBI shall consider and prejudice sahara on the new ordinance?

Kayo

4 years ago

And we still hope, SEBI is going to be good? Never, it will never happen!! Sebi's affidavit has said it has got complaints on alleged misrepresentation by Sahara Q Shop in the process of collecting money from the public. And, that the group was allegedly "forcibly and unilaterally converting the investments in Sahara India Real Estate and Sahara Housing Invest to Sahara Q Shop without any consent of the investor, in defiance of the orders of the Supreme Court."

sulochna

4 years ago

Sebi has moved contempt petitions in the SC, in which the court recently directed the Sahara firms to file property title deeds to cover the remaining amount of around Rs 20,000 crore. It is not just negligence of SEBI but intention integrated with deliberate negligence. The wicked thoughts of SEBI and all shall be curbed immediately so that a country can progress at a required pace.

MUkesh

4 years ago

I am also victim of sahara Q shop...it seems that most of the below comments is by sahara agents...

Ryan Dsouza

4 years ago

SC has already acknowledged that redemptions had been made by Sahara. But now Lets just brace ourselves for the next fake allegation of SEBI, the true picture is hidden behind the hard drive of SEBI because its becoming too routine for us to react with anger now.

saira

4 years ago

Why controversies are created at this point, the issue should be sorted out mutually. I beleive that SEBI is showing wrong directions to the media and people via irrelevant PR’s though there must be something called as “Reciprocal Understanding” to solve the matter and be the part of the golden bird India.

tejas

4 years ago

Sahara has already handed over the draft of Rs 5,120 crore on December 5 last year as the response of the investors. They have returned the money to the investors who turned up by submitting the prospects to the registrar with the details of around 1.87 crore investors with their names, addresses, amounts etc, no objection was raised by RoC or SEBI or any Government Departments.

charmi

4 years ago

Sahara is huge, they can easily purchase properties of their likeliness, SEBI and SC can’t have a bad eye on their new ventures. Let’s hope for the best for 28th with regards to multiple contempt of the court. It’s a very unfortunate case of negligence and irresponsible behavior from SEBI; I wonder what would be the next illiterate move from them.

Nidhi Kapoor

4 years ago

Revised-Fake allegations against Subrata Roy by SEBI, It appears that SEBI is giving credibility to the country but in real their credibility is for themselves. The end process should weed out the fake allegations by SEBI and shall prevail justice.

sameer

4 years ago

Sahara has already reached their investors and has paid them as directed by SC, now why the hell Sahara shall pay the amount which they aren’t liable to pay for? SC and SEBI have NO TIME FOR LOUSY and IRRELEVANT matters of India as they have nothing to do with many crucial matters; they have filled their heads with the AIR OF PROUD of being SC and SEBI!!!

Kayo

4 years ago

The imbecile SEBI always have something absurd in their box to blame Subrata Roy, Sahara had already delivered more than 127 truckloads carrying 35,000 cartons of documents to SEBI as directed by the court, now I don’t understand what fishy sort of action plan the SEBI has in their next move.

sulochna

4 years ago

Even after justifying it all, I don’t find a reason to beckon the Sahara again. Why it is always just Sahara more often hyperbolically defamed? What are the initiatives of the Govt / Court to get back the looted money deposited in Swiss banks? It’s very de-motivating and shall be intrigued more astutely by the SC to get the clearer picture of the said case.

sunjoy

4 years ago

in articles relating to saharas, no matter what the topic is there are stereotype comments like sahara is face of developing india , why sebi targetting sahara india ,etc.But what seems to be puzzling that we hardly get to see saharashree on different business fora or in the meetings of top industrialist. Apart from that, sahara is often said to staying away from media except for sport and glamour world,so how come they are "face of developing india"

REPLY

Ashutosh

In Reply to sunjoy 4 years ago

Just because the fact that Saharashree does not appear in many media coverage does not mean they are not doing anything for the development of the country. Great men don’t talk, they act.

NCDEX cannot disown responsibility for delivering quality goods, says FMC
Traders are facing destruction of black pepper or kalimirchi stock, worth about Rs300 crore traded on NCDEX that was found to contain carcinogenic mineral oils
 
Pepper traders have welcomed commodity market regulator Forward Markets Commission (FMC)'s decision instructing commodity exchanges to bear the responsibility of delivering quality goods.
 
The traders were up in arms against National Commodity & Derivatives Exchange (NCDEX) over the Exchange’s disowning responsibility for destroying adulterated (containing mineral oil) stocks in the Exchange accredited warehouses.
 
“As per Forward Contract Regulation Act 1952, forward contracts in commodity markets entail that all the contracts must eventually result in delivery of the commodities. Our stand that NCDEX cannot disown responsibility for delivering quality goods is clearly vindicated with the FMC circular,” said Pradeep Acharya, vice president, Kalimirchi Vyapari Association (KVA).
 
The circular issued by S Arun Kumar, deputy director of FMC, says, “It is needless to emphasize here that the settlement of the outstanding forward contacts by way of delivery is the primary responsibility of the respective exchanges on whose platform the participants have traded in forward/ futures contracts.”
 
The traders' body had questioned NCDEX for disowning responsibility for the adulteration of ‘Malabar Garbled 1 Black Pepper’ with cancer causing mineral oils, which has been confirmed by the Food and Safety Standards Authority of India (FSSAI). 
 
Acharya recalled that FSSAI has sealed the entire stock of 7,000 tonnes of ‘Malabar Garbled 1 Black Pepper’ valued at over Rs300 crore after sample tests have confirmed the adulteration the stocks with carcinogenic mineral oils.
 
The traders, who have paid for the stocks upfront and but not been given delivery, asked for refund of their money or delivery of the commodity as per specifications.
 
NCDEX, instead, disowned any responsibility for the adulteration saying the Exchange is not liable for non-compliance by any member and market participant. NCDEX maintained that it only provides a trading platform in forward contracts, a stand that gets negated with the FMC’s latest circular. 
 
Acharya said now that the FMC has asked the exchanges to report about their existing mechanism for redressal of buyers’ grievances regarding quantity and /or quality of the goods delivered to them, the issue is crystal-clear. "The onus is certainly on NCDEX,” he said.
 
KVA has since moved Madhya Pradesh High Court seeking urgent justice as the traders’ money of over Rs300 crore has been stuck and that they are losing heavily on all fronts.
 

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Why are we self-defeatists in indigenous mass transportation?
Konkan Railway’s Sky Bus Technology was dumped on safety considerations while Mumbai Mono Rail is getting delayed due to safety concerns. Even, imported technology Monorail that costs 70% more than the Skybus, is being given preference. Why are we so defeatists towards not adopting Indian innovations?
 
Engineering innovations such as Konkan Railway’s Sky Bus Technology, costing one-fourth the elevated Metro Rail, is dumped on safety considerations while safety concerns are causing delays in commissioning of Mumbai Monorail. The imported monorail technology, which costs 70% more than the Sky Bus, has been given preference (over Skybus) despite its capacity being barely one seventh of the indigenous Sky Bus capacity. Why are we so defeatists towards not adopting Indian innovations?
 
Newspapers reports on 6 September 2013...
 
“Monorail likely to be delayed further, contractors pulled up” … Hindustan Times
 
“Chembur Wadala Monorail Unsafe: MMRDA Officials” … DNA
 
“MMRDA raises doubts over monorail safety” … Times of India
 
“Madan (Metropolitan Commissioner, MMRDA) spoke about the lack of safety on the monorail while referring to last month’s incident of a panel door falling. Additional commissioner Bhide said that since the monorail was in its first phase (from Chembur to Wadala), there was ample space below, luckily, no one was hurt. The case would have been different if it was in phase 2 – from Wadala to Saata Rasta – where the stretch below is narrow and crowded.”  … Mumbai Mirror
 
Scene: end September 2004, location Madgao, Goa.
 
Venue: Test track of Sky Bus Metro, the innovative mode of transport of Konkan Railway.
 
“Onboard staff has accidental fall from 6m height from the Sky Bus on a test run, meets fatal end.”
 
This was the news headline at that time. Further testing was totally halted by the investigating agency. The innovator and team leader is not given extension to bring the Sky Bus Technology to logical conclusion. Ministry of Urban Development appoint an expert’s committee comprising of engineers, some from the Railways, including commissioner of Railway Safety and some from Delhi Metro Rail Corporation, competitors to Sky Bus technology, to see the viability of Sky Bus Metro. The expert’s committee was chaired by Prof Indiresan, former director of IIT Madras. It recommended to the Ministry to invest Rs50 crore  to improve certain aspects of design over a period of two years. About Rs50 crore were already spent by industry partners with Konkan Railway for the test track and an additional Rs50 crore would have been very useful in terms of getting the Sky Bus Technology off the ground had Prof Indiresan recommended that the full amount be made available for spending immediately, with outer limit of two years. This kind of recommendation would have helped in giving Indian innovators the signal that government of India is serious in research and development (R&D) that would benefit our nation through indigenous innovations. 
 
The author even spent some time with Dr Mashelkar, the then director general of Council of Scientific and Industrial Research (CSIR) discussing the Sky Bus innovation of B Rajaram, the then managing director of Konkan Railway. CSIR was sitting with funds as much as Rs5,000 crore for R&D then. Perhaps Dr Mashelkar, the advocate of “Gandhian Engineering—Maximum benefit to Maximum number of people with minimum expenditure” failed to recognize such an innovation could compete with the monorail and Metro Rails, with some additional benefits thrown in. Perhaps CSIR did not cover “technological innovations”.
 
There have been fatal accidents in the construction phase of Mumbai Metro as well as Mumbai monorail. Falling of the door of a monorail could have happened in habited areas of the route and would have had, on its record, some deaths too. It was just a coincidence that it fell on an empty road.
 
Having stopped further testing for three months in the case of Sky Bus, should not the government have stopped construction or testing of monorail or Metro Rail? Delhi Metro too has had its share of accidents, and not to speak of 3,600 people losing their lives every year on the suburban railway in Mumbai.
 
Are we not self-defeatists that we allowed the Konkan Railways team of enthusiastic and energised engineers disperse to their respective parent railways, and that we allowed the test track and the rail coach lie idle in Goa to get rusted?
 
While about 3,600 people get killed every year on the Mumbai suburban railway system, mainly due to heavy overload, the government does not seem to care to work on something like Bus Rapid Transit System (BRTS), which will cost less than one twentieth of Metro Rail and allow Indian geniuses to develop to serve.
 
With current prices and sliding rupee-US dollar parity, comparative statements for various modes of mass transits are presented. It is obvious that BRTS should be priority one followed by the Sky Bus. Construction time is also indicated, considering that a highly stressed Mumbai transport infrastructure will not be significantly further stretched during construction phase. Mumbai has to be functional even as infrastructure projects are taken up for implementation.
 

The figures shown above may appear to be exaggerated. If there are enough challenging queries on this article, the Author is willing to put the computations in the public domain. Let us be practical, pragmatic in developing our technologies and use them to make “Gandhian Engineering” a reality. Let us not be defeatists.
 
(Sudhir Badami is a civil engineer and transportation analyst. He is on Government of Maharashtra’s Steering Committee on BRTS for Mumbai and Mumbai Metropolitan Region Development Authority’s Technical Advisory Committee on BRTS for Mumbai. He is also member of Research & MIS Committee of Unified Mumbai Metropolitan Transport Authority. He was member of Bombay High Court appointed erstwhile Road Monitoring Committee (2006-07).  He is member of the committee constituted by the Bombay High Court for making the Railways, especially the suburban railways system friendly towards Persons with Disability (2011- ). While he has been an active campaigner against Noise for more than a decade, he is a strong believer in functioning democracy. He can be contacted at [email protected])

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COMMENTS

SS

4 years ago

On one hand, we are plan to spend 12-18 billion dollars on just 126 rafale planes, while on the other hand we ignore such a state of the art technology skybus which would have helped lacs & lacs of Indians to travel safely in metro cities. Difficult to believe that our government can take such stupid & short sighted decisions. It did not allocate 50 crs...just 50 crs for such beautiful technology. what a sad story. When will our politicians start thinking about our nation & stop thinking about corruption??? Let the God save our country.

Java

4 years ago

Indigenous technologies developed by government institutions are NOT acceptable because they do not have the potential to provide any incentives to the ministers , bureaucrats and purchasing authorities. Even private institutions do not have a chance if they are upright and fail to pass money under the table. That is why imported technology is always preferred by the government, even if it is outdated and prohibitively expensive: because it means more kickbacks all around and overflowing bank accounts in tax havens abroad.

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