IndusInd International Holdings sold 33 lakh shares out of its 13.12% stake in IndusInd Bank for about Rs423 per share or Rs138 crore
Mumbai: IndusInd International Holdings, one of the promoters of IndusInd Bank, has offloaded nearly 33 lakh shares of the private sector lender for a little over Rs138 crore, reports PTI.
This was in addition to 46 lakh shares sold by the IndusInd International Holdings earlier this week for an estimated Rs196 crore.
As per bulk data available with the stock exchanges, IndusInd International sold 32.75 lakh shares of the bank.
The shares were sold on an average price of Rs423 apiece aggregating to a deal size to Rs138.53 crore, the data showed.
Icon Capital A/C Afrin Dia has purchased 16.5 lakh scrips of IndusInd Bank and another 16.25 lakh shares were picked up by Afrin Dia.
As of 5th December, IndusInd International Holdings held 6.85 crore or 13.12% stake in the bank.
Timtara.com is attracting negative publicity due to its pathetic approach towards consumers through delayed shipments of products, inefficient consumer support systems and lack of refunds
Despite several warnings and outcries raised by duped consumers, online shopping portal www.timtara.com continues to cheat. Consumers allege the website treats its buyers very rudely. The site neither offers cash-on-delivery, like other portals dealing with online shopping, nor does it deliver products in time to buyers, with innumerable complaints posted on Timtara’s own fan page on social networking website Facebook, as well as, on review websites such as Mouthshut.com.
The e-buying website has been attracting negative publicity due to its pathetic approach towards consumers through delayed shipments of products, inefficient consumer support systems and lack of refunds from the website. A Google search about the site throws up interesting results. Most of the complaints generated online, refers to delayed shipments of products.
In an e-mail to Moneylife, a disgruntled consumer Niraj Prasad explained that he had purchased a mobile phone Micromax A110 Canvas 2 worth Rs8,990 on 4 December 2012 from the website. His e-mail pointed out that the products, if delivered, are often found to be faulty and the website does not refund the amount to consumers. An inefficient consumer support mechanism chooses to ignore phone calls and refuses to resolve complaints launched by consumers. Consumers allege that the consumer support mechanism of the website seems to have a standard answer for all queries posed to them. Sadly, Niraj’s case is not a stand-alone case. There are numerous complaints, which are similar, across the Internet.
Disillusioned by the process of waiting for refunds, the consumers have now launched an online campaign and formed a group on Facebook. The dubious activities of the website and its unclear motives were also featured on a TV programme. In the programme, cyber law expert Pawan Duggal pointed out that consumers can launch complaints under Section 34 of the Consumer Protection Act.
Regular monitoring and complaints by consumers ensured that the activities of this website were also highlighted in some newspapers. Moneylife had earlier covered Timtara (please click here to read the article) and noted that even though various discounts were displayed on the official fan page of the website on Facebook, there were several complaints registered against the portal.
The National Consumer Helpline informed Moneylife that a consumer can lodge an official complaint with the company, of which a copy has to be retained with the complainant. If the company does not respond within the stipulated period of 10 days, the complainant can move court and the proceedings would be carried forward by the consumer court. An e-mail to Mr Amritlal Saha, chairman, Consumer Coordination Council from Moneylife received a response saying that the complaint has been treated on a priority basis and a copy of the complaint has been forwarded to Mr Suresh Sharma, the director of the Consumer Coordination Council and Mr Giriraj Singh, chief manager of Consumer Online Resource and Empowerment Centre of the Consumer Coordination Council. An e-mail to the consumer support mechanism has also been sent by Moneylife.
Nearly every person who owns a computer has bought something from the Internet at least once. The trend of online shopping has been rising rapidly. In the crowded space called Internet, consumers have a plethora of e-commerce websites to choose from. Shopping online has become a matter of convenience for working professionals as it offers greater variety of products and cheaper price deals. Unfortunately, sites like Timtara are ruining the party with their careless attitude and apathy towards buyers.
In our final piece on Herbalife, we find out how distributors have been let down by the company they gave several years to. Negative testimonials show how lives have been ruined by this multi-level marketing scheme and why regulators need to act soon
Bill Ackman, an activist and hedge fund manager, has gathered several negative testimonials from former sales people and distributors of Herbalife. The picture is not at all encouraging. While the 1% is consistently enjoying the riches of the 99%, most distributors have become poorer. They’ve now learnt their lesson, but perhaps too late.
Click here for part I which describes Herbalife’s dubious products.
Click here for part II which describes Herbalife business model.
In our previous two pieces on Herbalife, we described the products and the business propositions of Herbalife’s MLM scheme. We also pointed out from Ackman’s presentation that very few people actually make money from the MLM scheme, let alone get to the top of the pyramid. High-ranking distributors, some with no educational background, use dollar testimonials to showcase their rag-to-riches story and lure hapless distributors to the bottom of the pyramid. Herbalife simply exaggerates such stories.
But what is the reality out there? Many are left behind, make losses and have had their lives shattered. MLM expert Robert FitzPatrick, an expert on the subject, has said that it is very difficult to make money on MLMs. According to him, distributors must invest as much as $3,000 to $4,000 in their Herbalife ‘business’ to even achieve “sales leader” status (and be eligible for ‘rewards’). However, he found out that, on average, distributors make only $549 per year! This means that it would take at least five and a half years just to breakeven. Many distributors aspiring to move up the pyramid borrow money to make that $3,000 investment. Aside from this unnecessary debt, they also had mortgage payments, which made it even more difficult for them to manage their finances.
Read what the failed distributors who saw their life savings wiped out have to say about Herbalife.
Let’s start with someone who wished to remain anonymous. “I was a Herbalife distributor for five years and never made it past the supervisory level. I spent $55K+ trying to get to the Global Expansion Team (GET) level. I finally woke up in August 2004, after spending yet more money (for airfare, hotel and food) to attend a so-called five-day change-your-life meeting at one of the jokers’ homes in Scottsdale, Arizona. His so-called mansion was a modestly priced home with a huge pool and no backyard. I was so turned off and disgusted by the lies and puffery that I made my decision to immediately resign as a distributor. Too bad that it took me five years to learn that this was nothing more than a pyramid scheme.”
One testimonial of a husband-wife who joined the MLM is particularly revealing of its tactics: “Herbalife pressures, bullies, promises and pledges to support and help. We were lied to and basically left on our own. Even though we tried as hard as we could, our supervisor decided we were more trouble than we were worth. The only people that make money in this business are those who have an army of distributors under them and an unlimited income to flood the market with advertising and mass mailings of blue books. My husband and I were left thousands of dollars in debt, but much wiser.”
One person who is deep in debt and had moral doubts says, “I lost about $20K to them two years ago. I am still paying off the debt. I got out because I could not bring myself to do what they wanted me to do to make sales and recruit people. It just didn't feel right. Too many half-truths and blatant lies.”
Here’s another testimonial from a husband-wife distributor team: “My advice to anyone considering Herbalife is—don't fall for the emotional testimonies. And don't allow your money to fly away the way we did. Be smart and research all the facts independently by yourself first.”
Another distributor says, “For almost everyone who invests Global Online System (which sells Herbalife) turns out to be a losing financial proposition. I was losing money every single month in the business (from March 2002-March 2003) working 10 hours per day, but I had to lie on the stage that I was making large sums of money.”
Here’s another sad story about a couple who was brainwashed into thinking that they were the “best distributors” only to find out that the pressure to recruit and sell was too much to bear. Rob says, “I was conned all the way and now both my wife and I are ill, and splitting up because of the pressure. It's fine until the investment money runs out, then you are left to rot. We were told in eight months that we were the best distributors ever to enter his organisation. Now we're broke, ill and splitting up. Please look into this organisation and warn people they need $200,000 minimum to make it work.”
The number of negative testimonials says a lot about Herbalife, its dubious business model and the way lives are ruined. You can read the rest of the testimonials here.
Herbalife is, of course, thriving in India. One of the biggest malaises in our country is regulatory oversight and the lack of laws to clamp down on MLMs. In India, MLMs may fall under Prize Chit and Money Circulation Scheme (Banning) Act, 1978, which is too badly drafted to be effective. According to Mr Fitzpatrick, numerous class action suits have been filed against major MLMs such as Amway, Herbalife, Usana, Pre-Paid Legal, and others—all making the same charges of pyramid fraud, in the United States. Herbalife is involved in as many as 270 lawsuits all over the world, many of which target the heart and practices of Herbalife’s business model: MLM and pyramiding.
One Indian distributor who shelled out money for Herbalife and lost his friends said, way back in 2005, “I think they might be dumping these in India now, since people in their country didn't let them get away with it (emphasis is ours). I realised that the truth about this business is that the money is made not by the distributors but by the company, when they coerce you into buying their starter kits and badges and assorted rubbish. When something stinks so bad you've got to get out and close the door. I'm lucky I did that, before I compromised on my ethical standards and lost all my friends to boot.”
This is what happens when an MLM, booted from one country, targets another with spotty regulation. India happens to be one such country.
When will Indian regulators take a hard look at MLMs? How many Indians will have their lives ruined before they take notice?
Click here to read about Moneylife Foundation seminars on financial literacy and spreading awareness about shady MLMs. It is time to become aware and brush up your financial literacy.
Everything you want to know about Herbalife can be found here.