Companies & Sectors
M&M to hike vehicle prices by Rs6,000 to Rs20,000 from October

The company is facing margin pressure due to higher input costs, devaluation of the rupee and increase in some raw material costs

Mahindra & Mahindra (M&M), India's largest utility vehicle (UV) manufacturer, said it would increase  prices of its passenger as well as its commercial vehicles by up to 2%. This increase would be in the range of Rs6,000 to Rs20,000, depending on the model  from 1 October 2013. The increase is primarily due to higher input costs, devaluation of the rupee and increase in some raw material costs.

Pravin Shah, chief executive for automotive division at M&M said, “We have been holding back prices for a while but now it has become necessary to raise them due to increasing input costs, devaluation of the rupee and increase in some raw material costs. As always, Mahindra remains committed to its customers".

Maruti Suzuki (India) Ltd, the country’s largest carmaker, too had said that it would increase prices of all its vehicles from first week of October by up to Rs10,000 mainly due to the depreciation of the rupee.

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Economy & Nation Exclusive
NSEL investors unlikely to receive more than 60% of their money
Indications are that the government may soon drop the kid gloves treatment to NSEL and its management and allow the CBI to take over. If that happens, most investors will not get anything back from their investment
 
Even as the government begins to distance itself from the woes of National Spot Exchange Ltd (NSEL) investors, we learn that actual recovery, in the form of physical assets, is unlikely to be more than 60%.  Moreover, this information is already known to the investigation agencies and the government. It may be recalled that Jignesh Shah and his team borrowed a lot of time by saying that it was imperative for all involved to be on the same side so that recovery of assets would give investors their money back. Our information from insiders of the Financial Technologies–MCX (FT-MCX) group indicate that this 60% is probably the most optimistic estimate. 
 
Further, we learn that Mr Shah has been negotiating with top brokers such as Anand Rathi Financial Services Ltd, Motilal Oswal Securities Ltd, India Infoline Ltd and others to accept a 20% haircut on the money recoverable.  Repeated talks with the brokers have failed, since the brokers refused to accept the haircut and wanted to pass it on to investors. Some high-networth individual (HNI) investors, who were consulted, also refused to accept the loss. The FT-MCX group had suggested that brokerage houses must take part of the loss and refund money to their investors. However, brokers want to pass on the loss to their HNI investors. From our interaction, it would seem that those who have invested over Rs1 crore in NSEL are bound to take a significant hit. 
 
Interesting, while NSEL investors have refrained from filing litigation against brokers, on the assumption that they are all working and negotiating on the same side, this is likely to be far from the truth. Indications are that the government may soon drop the kid gloves treatment to NSEL and its management and allow the Central Bureau of Investigation (CBI) to take over. If that happens, most investors will end up kissing their money goodbye. In the history of scam investigations, whenever the CBI has taken over a case, there is no question of investors’ getting back their money. 
 
The present situation raises several questions. Although multiple agencies including the Income Tax (I-T) department, CBI, Enforcement Directorate (ED), Forward Markets Commission (FMC) and the finance ministry have investigated NSEL, there is no authentic information in the public domain about the actual assets available with defaulters, the valuation of these assets and whether enough pressure has been brought to bear on them to transfer these to NSEL.  
 
There are also frequent rumours that several powerful people who had invested in NSEL may have used their clout to get their money back. These persons too may have been fooled by its appearance of a regulated exchange with a genuine trade guarantee, prefixed by the word ‘National’. However, it seems increasingly as though NSEL investors, who live in hope that their informal forum will get them justice, may be in for a shock. This scenario could only change if the FT-MCX group is also forced to add its own assets to the kitty to make good the loss. But there are no indicators that the government wants to bring such pressure on the group. One indicator of this is that Jignesh Shah, founder of FT-MCX blames NSEL's former managing director Anjani Sinha and a few others who have been sacked and have also admitted to their actions, but no action has been initiated against them either.
 
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COMMENTS

hasmukh

4 years ago

I am reminded of a story in which, a monkey gets away with a big loot & the other participants just watching the disappearance of their money.Poor NSEL investors !!

Dilipkumar Shah

4 years ago

ICAI has not conduscted any inquiry against auditors of NSEL for 2011-12, because no complaint has been lodged. such a scam would not have taken place in one year. ould you please take up the matter furhter.

Jeetendra Agarwal

4 years ago

It is very well evident that the government is in hand and glove with NSEL and let us wait for a much bigger scam in MCX. Strangely enough which is being allowed to go on even after knowing the owner of both the exchange is the same person.
Height of Corruption......

D N dalal

4 years ago

As can be seen from this article that you have the requisite network to get the information.

If so, kindly lead the battle to expose (i) the precise fraud committed, (ii) in what manner it was committed, and (iii) who were IN FACT responsible for the same.

Make sure that the Government is not able to hand out kid gloves treatment to those responsible.

Harish

4 years ago

Monopoly of NSE ?

REPLY

sathyacumaran

In Reply to Harish 4 years ago

sathyacumaran

the nse and bse and sebi take the investors for an ride and the law makers are law brakers this loss by stock brokers is not actual loss they cheat the investors if the investors is online client they trade in the client account as offline with haircut margins and vice versa and this profit is taken to brokers account and literally we can say that all the accounts of stock brokers firma are fudged for which ICAI ia also well aware and they are also party to it now days even Chartered accountant certification of balance sheet and other certification dependability is under million dollar question so as whole morale integrity honesty and accountabiltiy is totally lost after the advent of Shri ManMohan sing where they themself cheated the public cash for vote scam everything is hushed up even an learned person like Manmohan sing and Chidamabaram stooping to cheap politics is pitable state of affiars people should teach an fitting lesson and GOD should punish them let us pray for evil doers to get punishement in the current life itself is our sincere prayers would pay rewqard

Srinivasan restrained from taking charge as BCCI chief

The apex court also took strong exception to Srinivasan still holding the charge of BCCI when his son-in-law has been charge-sheeted in IPL spot-fixing case

The Supreme Court on Friday restrained N Srinivasan from taking charge as president of Board of Control for Cricket in India (BCCI) even if he gets elected in the annual general meeting (AGM) of the Board on 29th September in Chennai.

 

While taking strong exception to Srinivasan still holding the charge of BCCI when his son-in-law has been charge-sheeted in Indian Premier League (IPL) spot-fixing case, the apex court has allowed the Board to hold its AGM and conduct the election for the post of President.

 

“You will not assume the charge as BCCI President until we decide the matter,’’ the apex court told Srinivasan.

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