The ED is probing if the defence deals of Vectra chief generated any illegal funds that could have been subsequently laundered in other investment avenues.
New Delhi: A money laundering case has been registered against Vectra chief Ravinder Rishi and his firms by the Enforcement Directorate (ED) to probe alleged generation of illegal funds in the defence deal between Tatra Sipox UK and state-run Bharat Earth Movers Ltd (BEML), reports PTI.
The agency has registered the case after gathering initial details of the probe from the Central Bureau of Investigation (CBI) and other official channels and it is set to question few people including Mr Rishi in this regard.
The ED, according to sources, is probing if these defence deals and those involved in the execution of the agreements had 'off the book' or overpriced transactions leading to generation of illegal funds which could have been subsequently laundered in other investment avenues.
The CBI has earlier questioned Mr Rishi many times in connection with the alleged irregularities in the Tatra truck supply to the Army.
The ED has asked Mr Rishi to produce documents related to memorandum of understanding between Tatra Sipox UK and BEML which was inked in 1997 including the details of their financial statements and tax returns.
The Directorate will ask for similar documents from BEML and if need arises, from the Defence Ministry, the sources said.
The probe agencies, according to sources, have found out that it was in 1997 that Tatra Sipox UK signed the truck supply deal with BEML which was in alleged violation of defence procurement rules which say that procurement should be done directly from original equipment manufacturer only.
The first agreement for the supply for Tatra all terrain truck used for the transport of soldiers, heavy machinery, missile systems among others was signed with the Czechoslovakia-based company Tatra in 1986.
In 1997, BEML started procuring trucks through Tatra Sipox UK, claimed to be the marketing arm of Tatra, in which Ravinder Rishi had a substantial stake.
The CBI has alleged that since Tatra Sipox UK was not the original manufacturer of these all terrain trucks, the rule that defence procurements should be made from original manufacturer was violated.
However, the Nifty should restrain itself from closing below 5,185
A rout in IT and technology stocks following lower-than-expected fourth quarter results from Infosys and a negative opening of the European indices saw the market plunge in the post-noon session. Yesterday we had mentioned that there may be an upmove to the level of 5,450 if the Nifty manages to close above 5,360 in the coming sessions. We continue to maintain that trend, subject to the index restraining itself from closing below 5,185. The National Stock Exchange (NSE) saw a lower volume of 64.21 crore shares, which was below its 10 day moving average.
The indices managed to close trade marginally above the lows. The Nifty closed 69 points down at 5,207 and the Sensex finished at 17,095, a cut of 238 points from its previous close.
The market opened in the red, weighed down by the dismal guidance announced by IT bellwether Infosys for the first quarter of 2012-13 before the market opened. The Nifty resumed trade at 5277, down 21 points, and the Sensex opened 100 points lower at 17,233. Markets in Asia were up, tracking overnight gains in the US and Europe.
However, positive global cues soon led the indices into the green. Choppiness saw the market fluctuate near its previous close in the first hour of trade. Select buying gradually lifted the benchmarks to their intraday highs in late morning trade. At this point, the Nifty touched 5,307 and the Sensex went up to 17,398.
The market came of the highs and began a gradual southward journey in subsequent trade. The indices slipped into the red at around 1.30 pm, but intense selling pressure in IT and technology stocks and a negative opening of the key European markets saw the Nifty tanking 76 points and the Sensex tumbling 279 points at around 2.00pm. The Sensex touched its intraday low around the same time with the index sliding to 17,027. The Nifty continued its decline and touched 5,185 at the low point of the day.
Meanwhile, the market regulator Securities and Exchange Board of India (SEBI) today asked private companies and PSU to hike their public holding to 25% by August 2013.
The advance-decline ratio on the NSE was negative at 504:930.
Among the broader markets, the BSE Mid-cap index declined 0.72% and the BSE Small-cap index settled 0.63% down.
The sectoral gainers were BSE Healthcare (up 1.03%); BSE Fast Moving Consumer Goods (up 0.59%); BSE Oil & Gas (up 0.51%) and BSE Auto (up 0.45%). BSE IT (down 8.76%) led the losers’ pack. It was followed by BSE TECk (down 6.90%); BSE Realty (down 0.93%); BSE Bankex (down 0.80%) and BSE Capital Goods (down 0.55%).
Sun Pharma (up 2.54%); Coal India, Hero MotoCorp (up 1.52% each); Tata Motors (up 1.33%) and Reliance Industries (up 1.12%) were the top Sensex gainers. Infosys (down 12.61%); TCS (down 5.47%); Wipro (down 4.10%); Hindalco Industries (down 2.58%) and Jindal Steel (down 2.43%) were the top losers on the index.
The Nifty gainers were Dr Reddy’s Laboratories (up 2.36%); Kotak Mahindra Bank (up 2.30%); Sun Pharma (up 2.13%); Coal India and Grasim (up1.65% each). The key losers were Infosys (down 12.82%); TCS (down 5.89%); Wipro (down 4.35%); HCL Technologies (down 3.83%) and Jindal Steel (down 3.41%).
Markets in Asia settled higher brushing aside China’s slower-than-expected first quarter growth and the failed rocked launch by North Korea. China’s gross domestic product expanded 8.1% from a year earlier, the slowest in nearly three years, after an 8.9% gain in the previous quarter.
The Shanghai Composite rose 0.35%; the Hang Seng surged 1.84%; the Jakarta Composite gained 0.48%; the KLSE Composite added 0.12%; the Nikkei 225 climbed 1.19%; the Straits Times advanced 0.33%; the Seoul Composite was up 1.12% and Taiwan Weighted settled 1.64% higher. At the time of writing, the key European indices were down between 0.39% to 0.77% and the US stocks futures were trading in the negative.
Back home, foreign institutional investors were net buyers of shares totalling Rs135.98 crore on Thursday and domestic institutional investors were net buyers of equities amounting to Rs237.40 crore.
IDBI Bank plans to mop-up to $1 billion in 2012-13 from the overseas markets through syndicated loans and by issuing bonds. In the just-concluded fiscal, the lender had raised around $720 million. The resources so raised will be given as loans to Indian companies with overseas expansion plans. The stock tumbled 2.32% to close at Rs105.25 on the NSE.
State Bank of Travancore (SBT), part of the SBI group, is mulling a foray into the gold bullion trade by diversifying its products and services. At present it is expanding its branch network across Kerala and other metro cities by adding more than 100 branches, including NRI-specific centres, over the next 12 months. The bank aims a branch network of more than 1,000 units. The stock rose 0.27% to close at Rs571.45 on the NSE.
eClerx Services has signed a definitive agreement to acquire 100% of Agilyst Inc, a closely held US-based KPO company, through its overseas subsidiary eClerx Investments. Post-acquisition, Agilyst will operate as a fully-owned subsidiary of eClerx while Agilyst’s management team will continue to manage day-to-day operations. The stock fell by 0.26% to close at Rs730 on the NSE.
The jewellery company is venturing into renewable energy market by buying majority stake in two companies engaged in solar power
Kolkata: Shree Ganesh Jewellery House Ltd (SGJHL) has invested nearly Rs80 crore in solar business by buying 55% stake each in two companies, marking its foray into renewable energy space, reports PTI.
"We have acquired 55% in Alex Astral Power Ltd which has 25-MW solar power project in Gujarat and Alex Spectrum Radiation Ltd in Rajasthan with a total investment of nearly Rs80 crore," SGJHL chairman Nilesh Parekh said here. Both companies are now its 55% subsidiaries.
Mr Parekh said several investors had shown interest in investing in the Alex Group subsidiaries, which had embarked on a massive 500 MW solar power project target in the next three years at an investment of Rs5,000 crore.
He said the total investment in the Gujarat solar project was Rs400 crore and implemented by Alex Astral Power Ltd.
"This project will generate Rs60 crore revenue and so will not require SGJHL's funding for expansion in solar projects," Parekh said.
Shree Ganesh Jewellery House Limited completed its initial public offering (IPO) in March, 2010. The company is engaged in the manufacturing of hand-crafted gold jewellery.
SGJHL was trading 1.4% higher at Rs79.15 per share on the Bombay Stock Exchange while the benchmark Sensex was down 1.4% at 17,094.