Hit Kit Global: SEBI attaches bank, demat accounts of four entities

SEBI said Jayesh C Shah and Jaiprakash Jain executed synchronised trades in shares of Hit Kit Global Solutions creating artificial volumes and were aided by Galaxy Broking and Shree Hari Hira Stock Broking

Market regulator Securities and Exchange Board of India (SEBI) has ordered attachment of bank and demat accounts of four entities to recover dues worth about Rs30.66 lakh in a case related to fraudulent trading in shares of Hit Kit Global Solutions.


SEBI has to recover Rs11.38 lakh from Jayesh C Shah, Rs8.55 lakh from one Jaiprakash Jain, Rs7.17 lakh from Galaxy Broking and Rs3.54 lakh from Shree Hari Hira Stock Broking.


The dues include penalties imposed on the entities for violating norms related to prohibition of fraudulent trading activities in the capital market.


It was found by SEBI that Shah and Jain had executed synchronised trades in shares of Hit Kit Global Solutions that had created artificial volume in the scrip of the company as well as had manipulated its share-price.


Besides, Galaxy Broking and Shree Hari Hira Stock Broking had aided and abetted their clients in the manipulative activity thereby violating prohibition of fraudulent trading norms as well as stock brokers rules.


In four separate attachment orders dated 7th July, SEBI has asked banks to attach all accounts including lockers held by the entities.


Similarly, the regulator has directed depositories - NSDL and CDSL - to attach all demat accounts of the defaulters.


SEBI informed the banks and the depositories that there was “sufficient reason” to believe that defaulters may dispose of the amounts in the accounts and “realisation of amount due under the certificate would in consequence be delayed or obstructed”.


The regulator has also asked banks to attach the lockers held by the entities as well as “all other amount/proceeds due or may become due to the defaulters or any other money held or may subsequently hold for or on account of defaulter”.


It has further ordered the banks and depositories that with immediate effect no debit would be made in these accounts until further directions from the market regulator. However, the credits, if any into the account maybe allowed, SEBI said.


The watchdog has also asked for various details of the accounts held by the entities including account statements.


The price is (not necessarily) right
Some of the largest retailers from the US have recently come under fire for allegedly using deceptive pricing tactics to get folks through their doors and – once inside – to the checkout line with the most items

It’s all rosy until you reach the register. 
If you are searching for a summer sale, you should know that some of the country’s largest retailers have recently come under fire for allegedly using deceptive pricing tactics to get folks through their doors and – once inside – to the checkout line with the most items.
Here are five examples:
Hobby Lobby
You’ve heard of “The Song That Never Ends.” Well, this was “The Sale That Never Ends.” That was, however, until the attorney general’s office found out.
Hobby Lobby reached a $220,000 settlement with the New York Attorney General after an investigation revealed that the retailer advertised certain items as sale items for more than 52 consecutive weeks, according to a June 2014 statement from the attorney general.
“Ultimately, a permanent sale is no sale at all,” New York Attorney General Eric T. Schneiderman said in the release.
The deceptive advertising allegations against Hobby Lobby violated New York’s General Business Law, which prohibits never-ending sales, the statement said. As part of the settlement, the arts and crafts chain was ordered to contribute $138,600 in supplies to public schools and change its advertising practices over the next 60 days.
Banana Republic
(Banana Republic’s Spring 2014 ad via YouTube)
A California man has accused Banana Republic of “luring” customers – “hundreds of thousands” of customers – via the false advertising of storewide sales in the storefront windows of its shops.
Sajid Veera’s lawsuit, filed April 2014 in Los Angeles, alleges that Banana Republic “deceives customers and cheats its competitors by luring consumers (with) advertisements representing all of the products in the stores are on sale,” when in reality only certain items have been marked down.
Customers only realize the real price at the register, alleges the lawsuit, which claims that Banana Republic violated state laws and seeks to recoup more than $10 million for shoppers in California.
The price on the shelf wasn’t matching up with the price at checkout – a recurring theme at several stores in Missouri with point of sale overcharges ranging from a few cents to more than $15.
That’s what Missouri Attorney General Chris Koster alleged in a civil lawsuit against Walgreens filed last summer and settled last month. Among other false advertising allegations, the suit alleged:
From at least 2012 to the present, Walgreens has consistently and systematically displayed inaccurate sales tags, overcharged customers, failed to remove expired sales tags, failed to consistently ensure the price charged is the same as the price advertised, and used misleading or confusing in store-signs (sic).
The settlement — designed to put a lid on deceptive pricing — in part requires that Walgreens pay for an independent auditor to audit at least 25 percent of its Missouri stores each quarter for the next three years.
“My hope is that the combination of audits, financial penalties, and public shaming will give Walgreens executives a strong incentive to clean up their act,” Koster said in a statement announcing the sweeping settlement.
Jos. A. Bank

(Jos. A. Bank’s “four suits for the price one” commercial via YouTube)
Jos. A. Bank is well known for taking buy-one-get-one to the next level – to the point that the menswear chain became the butt of a Saturday Night Live skit lampooning its buy-one-get-three-free deal.
“I spend a lot of my time cleaning up messes so I need something that’s absorbent and affordable,” says a mom in the sketch. “So what do I reach for? A suit from Jos. A. Bank. With their innovative buy-one-get-three-free pricing, a suit from Jos. A. Bank is effectively cheaper than paper towels.”
But behind the laughs are allegations in several states including New York, Georgia and Florida and in private lawsuits that the clothing retailer misleads customers with its sales practices.
According to one private lawsuit brought against Jos. A. Bank in Ohio last summer:
Jos. A. Bank’s “buy one get one free” suit offers and other similar promotions require consumers to buy one “regular price” suit to get one (or more) free, but the stated “regular price” is a fabrication. It is a price no consumer has actually ever paid for a Jos. A. Bank suit not in connection with some sale or discount. … The Ohio Attorney General has expressly declared such practices “inherently deceptive” …
Jos. A. Bank has been the target of deceptive pricing allegations going back at least 10 years. In 2004, the company agreed to pay $425,000 to settle charges by then-New York State Attorney Eliot Spitzer.
Every consumer loves a bargain but there are rules retailers have to follow when advertising deals. And wasn’t following the rules, a California court ruled in February 2014.
The case, which resulted in a $6.8 million civil penalty for the online company, centered on Overstock’s deceptive advertising of the savings a customer would get on an item as compared to its reference price, or MSRP, that the company displayed near it.
The court found that the references prices were created with the use of formulas that were based on similar products, not the actual product being offered for sale, and that this fact was not adequately disclosed to customers.
Here are six examples of how Overstock ripped off consumers.
The FTC declined to comment for this article.
Learn more here about pricing issues. 


Bhushan asks SIT to probe alleged Rs6,500 crore money laundering by RIL
Prashant Bhushan alleged that RIL, with the help of ICICI Bank, laundered and funnelled back into Reliance companies over Rs6,500 crore through Singapore-based Bio Metrix Marketing 

Aam Admi Party (AAP) leader Prashant Bhushan has complained to the Special Investigation Team (SIT) on black money to investigate and prosecute what he calls 'huge money laundering and siphoning of money involving India's largest business group, Reliance Industries Ltd (RIL) and private lender ICICI Bank.'
Bhushan, in a letter sent to ML Meena, member secretary of the SIT, said, "We all know that there have been two detailed CAG reports that RIL is involved in inflation of capital expenditure, over invoicing and siphoning of money from the KG Basin D6 Block. There is a clear suspicion that such amounts are being laundered and funnelled back into Reliance companies."
Our mails sent to RIL remain unanswered till writing the story. We would incorporate their response as and when we receive it.
Citing a letter reportedly sent by the Indian High Commission in Singapore on 31 August 2011, the AAP leader said, "The High Commission had stated that Rs6,530 crore have come into India from Bio Metrix Marketing Ltd, a one room company in Singapore that does not do any business. It was pointed out that this is a company with no assets, no equity and does not file an income tax returns in Singapore claiming to be a small company. Yet, this huge investment by this company, amounting to Rs6,530 crore is the single biggest foreign direct investment (FDI) into India from Singapore."
"The High Commission had stated that all this money has gone into Reliance group companies in India with the major chunk going to Reliance Gas Transportation Infrastructure Ltd, which is a company 100% owned by Mr Mukesh Ambani personally," Bhushan said in his letter.
According to Bhushan, the Commission had pointed out that one Atul Shanti Kumar Dayal effectively owned this company Bio Metrix. He alleged, "Mr Dayal is nothing but a front for Reliance, since he is a director in 32 Reliance group companies. Now it has come to light that this company Bio Metrix has closed down."
He further stated that "Reliance is laundering its ill-gotten profits from KG Basin through Singapore and depositing the same into accounts of Mr Mukesh Ambani."
Bhushan said, pursuant to his letter and press conference on 27th February, RIL issued a press statement. Quoting media reports, he said that Reliance stated, “These investments in the Indian companies were made by Biometrix out of loans raised from ICICI Bank, Singapore branch.” 
"The ICICI bank did not issue any denial to the press statement issued by Reliance," Bhushan said.
According to the AAP leader and lawyer, the statement issued by RIL raises more question than it answers. He said, "The ICICI Bank had given a loan of thousands of crore to a company with no equity, no assets and no business. What was the collateral or security taken by the ICICI Bank before issuing such a huge loan? What was the due diligence done by the ICICI Bank before issuing this loan? The bank does not give even a small loan to an ordinary person, even for purchasing a car or house without proper security and documentation. But who sanctioned the Rs6,530 crore loan to this company with no business? Has the loan been returned by Bio Metrix to ICICI Bank? Now this company Bio Metrix has closed down. So how will the bank recover this loan?"
Citing international conventions on money laundering, Bhushan said, the duty is put on the financial institutions to observe due diligence and transparency to prevent money laundering. "It is also the duty of the Government to investigate all such transactions. The question therefore arises, was  ICICI bank an accomplice in the money laundering operation carried out by Reliance? The Government of India has just sat over these facts for about three years. The Government has not bothered to investigate this case of money laundering perhaps because powerful entities like Reliance and ICICI Bank are involved," he alleged in the letter.
Bhushan mentioned in the letter that he had sent a letter on 23rd July to Prime Minister Narendra Modi with a copy to Justice MB Shah, chairperson and Justice Arijit Pasayat, vice chairperson of the SIT.




3 years ago

BIG fishes do not netted in small once & NARENDRA MODY willnot act on BHUSAN advice.

nilesh prabhu

3 years ago

"Reliance Gas Transportation Infrastructure Ltd, which is a company 100% owned by Mr Mukesh Ambani personally,"

Is not RELIANCE a trademark of RIL which is a public ltd company, then how can mukesh ambani share this trademark.

RIL has to stop mukesh from using RELIANCE trademark


3 years ago

The fathers of the Constitution have committed the Himalayan Blunder by making the President of India merely "Rubber Stamp". The world renown "checks and balances" system of transparency which is the hallmark of truth and justice miserably failed. Ther4e is urgent need for the people of India to repose confidence in "socialism " and rule of law. MISSION HINDUSTAN IS FOR THE NEW REPUBLIC OF HINDUSTAN.

Jai Verma

3 years ago

What BJP govt is doing,in campaign they claimed having remedies for every thing now showing no strength against big business houses


3 years ago

The Government of India should write to Govt of Singapore that unless the facts of this case at Singapore end, certified by the Singapore Govt are sent to Govt of India, all investments from Singapore in India will be stopped. They only understand such langauage.

ch prakash

3 years ago

Except few companies like Infosys, all these companies made tons of money by exploiting the natural sources acquired by paying pittance by ripping the fellow citizens.



In Reply to ch prakash 3 years ago

It is very true. Companies like Infosys are only exceptions in this country. It is very strange that not many people talk about Companies like Reliance who are responsible for many ills in our system.

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