Companies & Sectors
Nissan, Ashok Leyland part ways on JVs
Japanese automobile major Nissan Motor Company Ltd has sold its stakes in three joint ventures with Ashok Leyland Ltd. to the Indian firm, it was announced here on Wednesday.
 
Both companies issued a joint statement to announce Nissan's exit from the three ventures.
 
The two companies have entered into a new agreement, whereby Ashok Leyland will continue to roll out light commercial vehicle models 'Dost' and 'Partner' under a licence from Nissan.
 
The two models are based on Nissan Motor's design, engineering and technology.
 
"Servicing and parts availability for customers will be ensured by a technical support arrangement. In addition, the two companies have agreed to continue a deal to procure Made in India parts to Nissan," the statement said.
 
"We are pleased to be moving forward into a new phase of our business with Ashok Leyland," Philippe Guerin-Boutaud, Nissan corporate vice-president in charge of the Global LCV Business Unit, was quoted as saying in the statement.
 
"Under the licensing arrangement with Ashok Leyland, the Indian commercial vehicle customers can continue to benefit from Nissan's engineering, wherein servicing and parts availability will also be ensured," he added.
 
"We have decided to acquire Nissan's stake in the three joint venture companies, and this will help focus our efforts to concentrate on our core business initiatives and our customers. We will continue our relationship with Nissan under the new arrangement," Vinod Dasari, Managing Director of Ashok Leyland, was quoted as saying.
 
However, the joint statement is silent on the enterprise valuation of the three joint ventures and the price Ashok Leyland -- a listed entity -- will pay Nissan for its stakes.
 
The first joint venture was for the manufacture of LCVs under Ashok Leyland Nissan Vehicles Pvt. Ltd., in which Ashok Leyland owns 51 per cent share while Nissan owns the rest.
 
The other two joint ventures are Nissan Ashok Leyland Powertrain Pvt. Ltd., the powertrain manufacturing company, owned 51 per cent by Nissan and 49 per cent by Ashok Leyland; and Nissan Ashok Leyland Technologies Pvt. Ltd., the technology development company, owned 50:50 by the two partners.
 
In February, Nissan Motor had sent a sent a notice to Ashok Leyland Ltd. to terminate its technology development joint venture Nissan Ashok Leyland Technologies Pvt. Ltd. over non-payment of royalty.
 
The termination notice was issued soon after Ashok Leyland sent a legal notice to Nissan Motor for using the equipment owned by another joint venture company to roll out cars instead of the LCVs.
 
Ashok Leyland had turned out four vehicle models from its partnership with Nissan -- Dost, Mitr, Partner and Stile -- while for Nissan it was only Evalia.
 
While Nissan put a halt to Evalia manufacture, Ashok Leyland stopped production of Stile later as the vehicle was not doing well in the market. However, Dost has been doing well for Ashok Leyland.
 
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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4G telecom service to rake in Rs 79,580 crore
With unfolding competition in the mobile data market, 4G connections are likely to account for 17% of the total user base by 2020 with revenues in the range of Rs79,580 crore, an Assocham-KPMG report said on Wednesday.
 
According to the report, the entire business mix of the telecom industry is going to witness a sea change and the introduction of 4G on large scale by one of the largest corporate houses is going to be a major development.
 
"4G is expected to significantly transform the revenue mix of service providers with estimated Long Term Evolution (LTE) revenues expected to reach Rs79,580 crore in the next few years," a statement said.
 
The report said the demand for high speed internet services would receive a further push from key governmental initiatives such as 'Digital India' and 'Smart Cities'. Besides mobile networks have been identified as key tools for financial inclusion where 4G can facilitate implementation of government's social sector schemes in a faster and secure way.
 
The report further said handset manufacturers are up to with the growing market of current and future 4G users.
 
It said the telecom sector in India is at an inflexion point, where it is poised not only to ride a high growth trajectory but also to provide a strong impetus to the government's key development initiatives.
 
However, the report also sounded a word of caution. "While demand growth is expected to remain steady on the back of affordable smart phones, digital inclusion programs and 4G rollouts, high capital requirements and an extremely competitive scenario continue to affect the profitability of key players," the report said.
 
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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Financial crimes & frauds: When and how to approach the EOW
"Greed is the main reason for people becoming victims of financial frauds or cheating. In fact, I was aghast to see people from all parts of the society falling prey to such schemes just because someone has promised them huge returns," says S Jayakumar, the Deputy Commissioner of Police in the Economic Offences Wing in Mumbai. He was speaking at the eighth session under the "Police & You" series.  
 
Moneylife Foundation with Police Reforms Watch and support from Saraswat Bank have launched the 12-week program (every Wednesday) that aims to spread knowledge about protecting yourself, your rights, the Indian Penal Code (IPC), cybercrime and economic offences. This was the eighth such session.
 
Mr Jayakumar, who has a commendable track record with postings at Malegaon as Assistant Commissioner of Police (ACP) after the bomb blast and Naxal-infested Gadchiroli as Superintendent of Police (SP) during the elections, says, "Irrespective of their reputation and achievements, people put their money into fraudulent schemes. I agree we are lagging behind in alerting people. However, since we have to deal with people from across the strata, it becomes difficult to reach out to everyone. But we are doing our best and would do more to create awareness about these financial scams".
 

The event was held in the well-appointed auditorium of Saraswat Bank headquarters, Eknath Thakur Bhavan. 
 
The eighth session of the 12-week series on "The Police & You- Economic Offences: When to approach the EOW" was conducted by Mr Jayakumar and Mahesh Aathavale, a former officer from Mumbai Police.
 
The former police officer shared details of action taken or being taken on MLM companies, like QNet across the globe. He told the audience, how in 2002 the Australian government named QNet, GoldQuest and QuestNet as pyramid schemes. Similar action was taken by the governments of Nepal, Sri Lanka, Iran, Rwanda, Sudan, Syria, and Turkey. 
 
"In 2010 the Saudi Arabian Ministry of Commerce and Industry banned QNet, accusing the company of theft, falsification, and failure to register, and warned citizens to avoid involvement in fraudulent schemes, mentioning QNet specifically. In 2012, the Dar Al-Iftaa issued a Fatwa against QNet stating the MLM Company’s business in Egypt is haram (forbidden under Islamic law) and could harm the country's economy," Mr Aathavale informed the audience. 
 
He also informed about several action taken by enforcement agencies, like the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Mumbai Police and Delhi EOW against QNet. (Read: Noose Tightens around QNet after 12 Long Years)
 
 
Mr Aathavale then highlighted selling techniques used by such MLM and Ponzi schemes under the pretext of product sale. He said, "Many of the products sold by MLMs are virtual products. Even if the products are physical, there is no quality control by states on its production, there are no regulations followed and all the company or its agents or distributors sell is golden dream under the pretext of product."
 
He explained roles played by promoters, financiers, web designers, chartered accounts, leaders or agents and subscribers in establishing and promoting such schemes. 
 
Mr Aathavale, who was instrumental in probing Speak Asia, the online survey company that duped lakhs of people using the money circulation scheme, shared the modus operandi of the company and its promoters. 
 
"Speak Asia successfully enrolled 23 lakh panellists across the country in just 18 months and collected over Rs2,300 crore. There were doctors, engineers, bankers, police officers, lawyers vis-a-vis handcart puller, domestic help, and small shop owners were among the gullible investors or victims of this scheme. Panellists were portrayed as role model via aggressive marketing and advertising by the Company through their advertisements for earning extra income or for generating jobs for lakhs of people. When the scheme was subsequently closed, it had an assured payout of over Rs30,000 crore," he said.
 
Moneylife was the first publication to expose Speak Asia way back in 2010. On 8 October 2010, Moneylife exposed Speak Asia and its modus operandi. (Read: Another MLM scam in the happening, this time under the pretext of an online survey)
 
Mr Aathavale then touched upon various provisions under the law to act against MLM, Ponzi or money circulation scheme and its promoters and agents. He said Section 2 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (PCMCS Act) defines money circulation scheme in clear wordings. 
 
Sec 2 (c) "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions
 
He also explained section 3 and section 4 of the PCMCS Act that deals with banning of prize chit and money circulation schemes and penalty for contravening the provisions of the section. Mr Aathavale also highlighted Section 8 of the Act that allows forfeiture of newspaper and publication for helping in promoting such schemes. 
 
Section 8 of the PCMCS Act says, "Where any newspaper or other publication contains any material connected with any prize chit or money circulation scheme promoted or conducted in contravention of the provisions of this Act or any advertisement in relation thereto, the State Government may, by notification in the Official Gazette, declare every copy of the newspaper and every copy of the publication containing such material or the advertisement to be forfeited to the State Government."
 
 
 
Mr Aathavale also explained in details, the Maharashtra Protection of Interest of Depositors (MPID) Act, which takes care of the criminal aspect of MLM, Ponzi and money circulation schemes. Among important features of the MPID Act, there is a provision to convict every person responsible for the management of the establishment including the promoter, partner, director, manager or an employee of a company for fraudulent default by a financial establishment. Also, the government on a complaint or otherwise, can order the attachment of money or property of a financial establishment and appointment of a competent authority to control the same, he added.
 
"There are some frauds so well conducted that it would be stupidity not to be deceived by them," Mr Aathavale concluded.
 

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COMMENTS

Silloo Marker

6 months ago

The talk was by both speakers was very interesting and enlightening for ordinary citizens who could learn to avoid falling prey to dubious schemes. I was quite impressed by the level of competence that our police in the Economic Offences Wing who have brought to book some serious economic offenders. Thanks to Moneylife for organising these useful talks.

manoharlalsharma

6 months ago

Financial crimes & frauds: When and how to approach the EOW,/ we should wait till understand properly that what is crime,then to analyse properly and after we should file the case in general but by the time fraudster make money and fly so it is the duty of Government agencies to get all types of businesses be registered before going to public but in INDIA authorities wait till booking of complaint and if u pay ful attention to u r complain u have lose u r life in waiting of Judgement or justice some time it found that the authority make way to unlock criminals as guiding them.

atul gupta

6 months ago

Madras High Court in 2005 declared MLM as illegal business. Qnet previously known as Goldquest and Questnet have been declared fraudulent companies by SFIO and Parliament of India. Qnet founder Vijay Eswaran is an accused in fraud Goldquest case filed by Chennai police in 2008. MPID Act have been imposed on Qnet and Bombay High Court has declared it as nothing but money circulation as per PCMS Act. Enforcement Directorate has registered a case and Economic Offenses Wing Mumbai has arrested few leaders like Ram Singh of Qnet Infiniti group. Lookout circular issued against Infiniti leaders like Sachin Gupta, Kavita, Sharfun Shaikh, who have fled to places like Dubai. CERT has blocked Qnet websites under Court’s order. CB-CBI of Andhra Pradesh shut down Questnet and case is going on in court. Govt of Andhra Pradesh has passed order for attachment of properties of Questnet. Questnet MD Pushpam Appalanaidu has been arrested. Michael Ferriera of Team Faith and shareholder of Vihaan Direct Selling, a franchise of Qnet have been denied anticipatory bail by High Court. Maharashtra CM has assured enquiry into Qnet operations.

In India Qnet IR are duping and looting people on daily basis by using planned scripted way of showing their knowns and friends a business opportunity and chance to earn 5 crores in 5 years of project in partnership. They lure friends for investment from 3 lakh to 10 lakh to start business and after taking moneybuy products on online store of Qnet portal which are very expensive and useless products. Real purpose is not to sell products online but to induce new IR to indulge in chain business to trap more and more people for earning huge commissions through binary compensation plans. Even after cases going on Qnet in all over India still these agents are continuing this banned business of Qnet agressively.

Vaibhav Dhoka

6 months ago

What is diff. between functions of SFIO and EOW?Neesa Leisure Ltd FD nonpayment comes under which authority.

pawan gulati

6 months ago

Bबिल्डर्स झूठे प्रॉमिसेस करके कस्टमर्स को चीट करता हैं उसकी कंप्लेंट ed में कैसे करे। pl गाइड

pawan gulati

6 months ago

Bबिल्डर्स झूठे प्रॉमिसेस करके कस्टमर्स को चीट करता हैं उसकी कंप्लेंट ed में कैसे करे। pl गाइड

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