MLM / Chain Money
Multi-state cooperatives’ are helping transfer funds for Ponzi schemes says Standing Committee
Since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds for Ponzi schemes, the Moily Committee said in its report calling for better regulation 
 
In a startling expose, the Parliamentary Standing Committee on Finance has said, multi-state cooperatives under the Agriculture Ministry, operating without any financial regulatory over sight, have become a conduit for transferring huge amount of money for dubious Ponzi schemes that are ripping off the savings of people across India. 
 
The Committee headed by Congress leader M Veerappa Moily categorically says that since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds.
 
"It seems that the present regulator for multi-state cooperatives i.e. Central Registrar falls under Ministry of Agriculture, which do not have any financial regulatory infrastructure. As number and amount of multi state cooperatives have increased hundred times since 2010, the Committee would suggest that the enforcement aspect with regard to financial schemes operating through multi state cooperatives be shifted to Department of Economic Affairs under Ministry of Finance, since the multi-state cooperatives have now become some kind of a shelter for illegitimate funds, which seemed to have surprisingly escaped the notice of the concerned Authorities, particularly the Central Registrar under Ministry of Agriculture," the Committee said in its report presented to the Lok Sabha Speaker on 7 October 2015. 
 
Interestingly, Nationalist Congress Party leader Sharad Pawar was the Minister for Agriculture in the Manmohan Singh government since 2004. The Central Registrar in the Ministry of Agriculture regulates Multi state cooperative societies.
 
According to the Report, some of the bogus companies running Ponzi schemes, which have transferred their funds and assets to multi state cooperatives include, Samruddha Jeevan Foods Ltd, Sai Prasad, Utkarsh Plotters & Multi Agro Solutions, PGF and PACL, Agri Gold Farm Estates and Saradha Chit Fund.
 
The Moily Committee recommended the government to institute special audit for multi-state cooperatives so that this scam can be unearthed and corrective action taken immediately. "In this regard, the Committee would also suggest that the regulatory regime in respect of multi-state cooperatives should be streamlined and tightened so that they do not become an instrument of diverting and shielding illegal funds from Ponzi companies," the report said.
 
In its deposition before the Committee, the Department of Agriculture & Cooperation was asked about the abnormal increase in multi-state cooperatives. "As and when Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI) has informed to this Department that particular society is involving in the collection of deposits from the public/ nominal members, the concerned Registrar of Cooperative Societies (RCS) of the States have been requested to conduct inspection u/s 108 of the Multi-State Cooperative Societies Act, 2002 (MSCS Act) and also the societies have been directed to refund the amount collected from the nominal members," the Department stated.

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COMMENTS

Benny Stephan

2 years ago

I have invested for my life time savings for 6 years and now its been more than 2 years and I am yet to get the return from Pacl India Limited. A case against pacl has been running for more than 17 years. The legal proceedings are very slow in India. I would also blame the companies for taking advantage of the judicial system in India. I also blame the regulators Sebi and Sat. I also blame the local police in India. I also blame CBI, ACB. I am an Aam aadmi who has been waiting for years to get the returns and nobody seems to be helping us whatsoever to get the returns. Everyone is trying to delay the returns including the company pacl itself and now the congress leader by calling another special inspection.

REPLY

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 2 years ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

Benny Stephan

In Reply to Shirish Sadanand Shanbhag 2 years ago

Thank you Shirish.

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 2 years ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

Haryana government drops chargesheet against Khemka on Vadra issue
 In a major relief to senior IAS officer Ashok Khemka, the Manohar Lal Khattar-led BJP government in Haryana has dropped the chargesheet against him in the controversial land deal case relating to Congress president Sonia Gandhi's son-in-law Robert Vadra.
 
Official sources on Wednesday said Chief Minister Manohar Lal Khattar cleared the file to drop the chargesheet against Khemka last week.
 
Khemka was chargesheeted in December 2013 by then Congress government in Haryana led by Bhupinder Singh Hooda for "administrative misconduct" and "exceeding his jurisdiction" in cancelling the mutation of the Rs.58 crore controversial land deal of October 2012 between Vadra's company Skylight Hospitality and realty giant DLF.
 
The cancellation of the land deal's mutation was done in October 2012 by Khemka.
 
The dropping of the chargesheet was based on the reply submitted by the officer to the Haryana government and a personal hearing given to Khemka by Chief Minister Khattar on October 6 this year.
 
Khemka, who had blown the lid off the shady land deals by Vadra and his companies in Haryana's national capital region (NCR) area, was transferred from his post by the previous Hooda government as he was in the process of initiating action against Vadra.
 
Khemka had also ordered an inquiry into the undervaluation of land deals done in four districts in Haryana, adjoining Delhi, by Vadra.
 
Both orders were passed by Khemka after he had been transferred as director general-consolidation and inspector general-registration by the state government. 
 
While he was transferred on October 11, the orders were passed on October 12 and 15. Khemka had claimed that the orders were passed when he had not relinquished charge of these posts.
 
Khemka was also charged with going against service rules by going to the media openly and even criticising government policies. Khemka had freely given TV and other media interviews as Vadra's land controversies came out.
 
Embarrassed by Khemka's actions and statements, the Hooda government had set up a three-member committee of senior IAS officers to look into the issue. The committee, in its report, had stated that Khemka's actions amounted to administrative misconduct and exceeding jurisdiction. 
 
The committee submitted its report even without calling or examining Khemka once.
 
Khemka's 105-page reply to the committee's report, in which he highlighted various other land scams and sham deals and companies associated with Vadra and other influential people, was not accepted by the Haryana government.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Reliance Infra to sell cement, road businesses
Industrialist Anil Ambani-led Reliance Infrastructure on Wednesday said it has decided to sell its 5.8-million-tonne cement business, while initiating the process to hive off the Rs.8,800-crore investment it has made in 11 road projects across seven states.
 
The steps, the company said, were in tune with the renewed focus on the defence space for growth.
 
"The 5.8 million tonnes per annum cement business and related assets will be disposed off through a formal process. The Company has short-listed seven potential buyers from a total of 15 parties that submitted preliminary expressions of interest," the company said.
 
As regards the roads projects, the company said an investment of Rs.8,800 crore had already been made in 100-percent-owned, 11 revenue-generating projects, running into 1,000 km across seven states
 
This, the company said, will be monetised, adding: "A formal process has been initiated and has attracted significant interest from strategic and portfolio institutional investors in India and overseas."
 
Addressing the shareholders later, Ambani said: "Our capex (capital expenditure cycle) is now complete. Over Rs.30,000 crore has been spent in the last six years and all projects are operational. In the next financial year, you will see the full impact of cash flows."
 
He also reiterated that defence and smart cities will be the two drivers of future growth.
 
The company has already announced that it is acquiring Pipavav Defence to pursue growth in this segment. Recently, it was allotted 290 acres land in Mihan, near Nagpur in Maharashtra, to make aerospace equipment and naval combat systems.
 
The company has also entered into a number of global pacts for strategic partnerships.
 
In the smart cities space, Ambani made a reference to the government notifying 100 cities under the project and said: "With our group capabilities in utilities, transport, telecom, etc we will be able to provide one stop integrated solution.
 
At the same time, he added, there were multiple challenges in infrastructure and public-private partnership, with major regulatory uncertainties, procedural delay, legal deadlocks and the lack of fulfillment of promises and appropriate risk-sharing mechanisms.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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