Libyan Prime Minister Ali Zeidan kidnapped by armed group

Ali Zeidan was taken to an unknown destination for unknown reasons by a group of men believed to be former rebels

An armed group on Thursday kidnapped Libyan Prime Minister Ali Zeidan at dawn  and took him to an unknown location.


In a brief statement on its website, the Libyan government said, "The head of the transitional government, Ali Zeidan was taken to an unknown destination for unknown reasons by a group of men believed to be former rebels".


Sensex, Nifty on an uptrend: Wednesday closing report

Current upmove may take the Nifty to the level of 6,085, while the close below 5,990 may put the upmove on pause

On a higher volume of 64.90 crore shares on the National Stock Exchange (NSE) the Nifty was pulled up into the positive zone for the second consecutive session. The market opened weak but immediately went on an uptrend. The indices entered went into the green after 11 and remained there throughout the session, rising steadily. The benchmark closed near the day’s high.


The Sensex and Nifty opened lower at 19,918 and 5,893 respectively. After hitting a low of 19,827 and 5,877 the indices moved gradually up to hit a high of 20,278 and 6,016. Sensex closed at 20,249 (up 266 points or 1.33%) while the Nifty closed at 60,07 (up 79 points or 1.33%).


Except for MNC (down 0.09%) all the other indices on the NSE ended in the green. The top five gainers were Realty (4.62%); Bank Nifty (1.91%); Pharma (1.91%); Finance (1.76%) and Services (1.58%).


Of the 50 stocks on the Nifty, 40 ended in the green. The top five gainers were D L F (5.98%); Sun Pharma (5.73%); Jaiprakash Associates (4.35%); Kotak Mahindra Bank (4.02%) and I D F C (3.52%). While the losers were Wipro (1.54%); M&M (1.41%); Sesa Sterlite (1.02%); Cairn (0.68%) and BPCL (0.60%).


Reserve Bank of India (RBI) governor Raghuram Rajan on Tuesday said that the current account deficit (CAD) can be contained at $70 billion this fiscal. He also that he is working to turn investor sentiment positive for India to help boost GDP growth rate. Positive views by the governor on the Indian economy played on the market sentiments. He said the economy will only start getting better from now, reflecting a growing view that the economy has bottomed out. Rajan cited that rising exports, strong agricultural production and revival of stalled projects will aid in the recovery, and the law makers in the US would be able to arrive at a fiscal deal.


The provisional data released by the government today, 9 September 2013, showed that India's trade deficit narrowed sharply to $6.7 billion in September 2013 from $10.9 billion in August 2013. The September trade deficit is the lowest since March 2011. Merchandise exports rose by 11.15% year-on-year in September to $27.68 billion. Imports fell 18.1% year-on-year to $34.44 billion. Gold and silver imports fell by over 80% to $0.8 billion in September. Trade Secretary S R Rao said that government curbs on imports of non-essential items have been effective, adding that jewellery exports from India are likely to revive going ahead.


The International Monetary Fund (IMF) forecast economic growth for India to dip to 4.25% in the year to 31 March 2014 saying the economy would continue to underperform because of regulatory, infrastructural, and financing issues.


India will give non-banking financial companies (NBFCs) priority when awarding new commercial banking licenses as they already own an existing network of financial services in the country, central bank deputy governor KC Chakrabarty said on Wednesday.


US indices closed in the red on Tuesday. News making round that US President Barack Obama will today nominate Federal Reserve vice chair Janet Yellen to be the next head of the US central bank. Seen as a monetary policy dove, Yellen is considered more likely to maintain the Fed's current accommodative stance. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.


The IMF cut its global growth forecast to 2.9% for 2013 from its July estimate of 3.1%. IMF sees a modest pickup next year to 3.6%. The cut in its forecasts for global growth yesterday it said US government default could “seriously damage” the world economy.


Except for KLSE Composite (down 0.47%), NZSE 50 (down 0.59%) and Taiwan Weighted (down 0.37%) all the other Asian indices closed in the green. Nikkei 225 was the top gainer, up 1.03%. South Korea's markets were closed today for a holiday.


European indices were trading in the red. US Futures were trading in the green.


Sai InfoSystems’ Rs1,400 crore fraud: Another Satyam?

Sunil Kakkad, the chief of Sai InfoSystem, which was platinum sponsor of Vibrant Gujarat summit, is absconding. Employees are not paid salaries for the past nine months while lenders have issued notice against the promoters. However, there is no substantial action from investigation agencies

Gujarat-based Sai InfoSystem India Ltd (SIS), which claim to be an IT company worth Rs2,000 crore is alleged to have defrauded several banks. The company has not even paid salaries to its about 1,400 employees in the past nine months besides not paying any taxes, insurance and provident fund deductions to the government.

Sunil Kakkad, chairman and managing director of Sai InfoSystem, who allegedly committed a Rs1,400 crore fraud is reportedly missing along with his family from 28 June 2013. This company, which was the platinum sponsor of the high-profile Vibrant Gujarat Summit is turning out to be a Satyam-like case, where the promoters, currying favour with politicians, have deliberately duped the employees, lenders and even the government. While details have been reported in the media, it is another surprising case where government investigation agencies seem to be dragging their feet over action against the promoters.

Sai Infosystems borrowed Rs1,035 crore as loan from seven lenders. Of this Rs794.32 crore came from five banks, State Bank of India (SBI), State Bank of Bikaner and Jaipur (SBBJ), Industrial Development Bank of India (IDBI), Bank of Baroda (BoB) and Allahabad Bank. Atrium Infocom, a unit of SIS borrowed another Rs97.20 crore from SBI and Vijaya Bank while another group entity, Click Telecom, obtained a loan of Rs144.16 crore from SBI, Vijaya Bank and Canara Bank.

SBI has issued a public notice warning people against dealing with SIS, its associates or in its assets. Employees have also registered a first information report (FIR) against the directors of the company at Vastrapur Police Station in Ahmadabad under section 114, 409 and 418 of IPC. This has led to the arrest of Samir Kakkad, brother of SIS’s CMD Sunil Kakkad. The company’s assets have been seized by the lenders.

One senior official who used to work at SIS said, “Police registered FIR only after two months of follow ups and sending legal notice to Commissioner of Police with copy to Chief Minister’s office.”

Employee grievances

Employees of SIS, who have not been paid their salaries for over nine months, want the company to be wound up in order to recover their dues of Rs21crore. What makes the matter worse is SIS had been deducting amounts for medical insurance and provident fund (PF) from salaries but apparently not credited it to the government. However, the company balance sheet shows these amounts as deposited with the government. In addition, company has allegedly not paid taxes such as VAT, customs and excise duty.

SIS has offices in Mumbai, Delhi, Punjab, Rajasthan, Kolkota, Bangalore, Kerala, Hyderabad, Jammu and many small suburbs. The employees have written letters to various ministers including Gujarat chief minister Narendra Modi and several senior bureaucrats of Government of India, to draw their attention towards ongoing fraud but it has not evoked any response.

One senior official of SIS stated, “We, the employees (current and ex), are approaching various courts at different levels. We have tried our best, but we have not been able to reach chief minister of Gujarat. While, we have managed to reach his assistant Vijay Nehra, there has not seen any support from the chief minister’s office or any other administrative or regulatory teams”

SIS has a debt in excess of Rs1,035 crore. The company gets many big projects as it was under-quoting in bids which resulted in large losses. SIS had won the Mumbai City Surveillance Project, which included deploying 6,000 internet protocol IP cameras for a bid of Rs700 crore against the second nearest bid of Rs1,000 crore by AGC Networks. SIS had also won a contract from the Department of Post for digitisation of several processes.
For this, SIS had bid Rs1,500 crore, while the second bidder quoted Rs2,200 crore.

However, according to the auditor’s report of FY 2011-2012, SIS is a profit making company which has turnover of Rs1,618.97 crore, networth of Rs475.90 crore and net profit of Rs113.18 crore.

While describing the current situation of company, another senior official said, “The company is financially paralyzed, we had approached and requested the consortium of banks; lead by SBI, to support the employee representatives in running the operations, but they are supporting. There are a new set of creditors who are representing themselves as SIS and collecting pending payments with assistance from the bank officials. The set of creditors who have become new directors and are heading SIS Board, include Prakash Mishra, Amit Majumdar, Wincient Christian and some former employees who were close to CMD’s family.”



Anchit Sarkar

3 years ago

Department of Posts notice for blacklisting :

Saurabh Bansal

4 years ago

Bizarre... Lack of planning and poor rate of execution have led to this fiasco.. Indian Govt & Local Govt again seems to be paralyzed . . . Issue a Red corner Notice against him and drag him back to the country... and punish for setting examples...

Last word: Wake Up Folks !!!

R Balakrishnan

4 years ago

Reminds me of Pentafour and co. Still fail to understand why banks are lending to IT cos? So much of high risk in that segment for a lender-



In Reply to R Balakrishnan 4 years ago

I fully agree with you. It is not clear why Banks lend to such dubious characters. It has been going on for the past two decades specially after so-called liberalisation. Public money is being looted by such people and the other variety who collect Deposits from common people and simply vanish.It is not clear why courts cannot recover money from such cheats.It is high time this problem is taken up by a Forum like this.

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