Noida Buildings with No Parking Face Fines & Lease Cancellation
New Okhla Industrial Development Authority (Noida) has decided to impose heavy fines or cancel the lease of developers who have not constructed parking lots. The lack of parking in residential and commercial complexes has forced visitors and employees to park on the roads which leads to traffic snarls. 
 
According to estimates, there are over 50 illegal parking lots in Noida. Various roads in the city have been turned into parking lots. The arterial road in Sector 27 has been encroached upon for parking by Kailash Hospital. The growing space crunch for parking has given birth to the parking mafia which charges usurious rates from vehicle-owners.

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Regulation, Call Data & Privacy
Court stops SEBI’s fishing expedition

The Securities & Exchange Board of India (SEBI) has been fighting a long battle with telecom operators over its rights, as a regulator, to demand telephone call details of persons being investigated for financial offences. While some telecom companies parted with the data, others resisted. However, SEBI obtained the powers to seek call data records (CDR) and began to make thousands of requisitions since 2009. 
 
The matter eventually landed in court. The question then was: What data can the regulator requisition? Can it go on a fishing expedition and demand data on suspicion of illegal activity? Or should it restrict its demand to people under investigation? In April 2014, the Bombay High Court delivered a landmark judgement that laid down the mandatory safeguards. It has said that SEBI can only call for CDRs of persons who are subject to an investigation or inquiry and nobody else. 
 
Moreover, only a ‘duly authorised’ official can call for the data and he will have to record an opinion, in writing, on the file about why the data is relevant to the investigation. This means that there can be no fishing inquiry and every SEBI official cannot ask for call records on a whim or suspicion. It also means that SEBI will have to put an end to its practice where even the most junior officers were sending out thousands of demands for call records with a simple email or letter 

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Jignesh Shah Arrested in NSEL Scam
But there is no sign of investors getting their money back

It was the least known entity in the entire MCX group which saw meteoric growth over the past decade. Yet, on 8th May, it was the National Spot Exchange Limited (NSEL) and its Rs5,600-crore scam that probably drove the final nail in the financial market career of Jignesh Shah. Ironically, just eight days earlier, Mr Shah was back to his pugnacious ways, in the mistaken belief that he had “survived the tsunami of bad news.” 
 
The NSEL scam, in a nutshell, is about the Exchange running a long-term lending operation disguised as paired forward contracts, which were also illegal and, worse, were without collateral. When the music stopped, the borrowers, in most cases, have not been able to refund large chunks of the money, despite arrests, interrogation and threats.

Very quickly, investigations showed that his flagship bourse and businesses were not run very ethically either. In fact, it was these findings of a forensic audit by PriceWaterHouse (PWC) that Jignesh Shah was vociferously contesting in television interviews and newspaper advertisements. 
 
PWC’s report accuses him of involvement in illegal trading and racheting up trading volumes in his flagship—the Multi Commodity Exchange (MCX). The words were probably like a red rag before investors who had lost crores of rupees and the pressure to hold him accountable and arrest him, clearly followed. So 10 months after government action began, Jignesh Shah, its founder, was finally arrested. 
 
Unfortunately, government actions have no positive impact on the group. The entire MCX group is now being ‘professionally-managed’ under the direct oversight of two regulators and the finance ministry; yet, the unexplained top-level exits at the bourses cause concern. Why would MCX-SX chairman, GK Pillai, and MCX managing director, Manoj Vaish, resign so abruptly and mysteriously when they had the support of the government and regulators and were appointed to clean up the mess at MCX group?
 
Finally, what about the investors? From Harshad Mehta to Ketan Parekh, Dinesh Dalmia (DSQ Software) to Ramalinga Raju (Satyam), one factor in the India scam story has been constant—investors either don’t get their money back or get a pittance, decades later, when its value is half, or less, and they have spent a lot of money fighting legal battles. Recovery of money is meaningless for investors, if it stays locked up with a court/ regulator-appointed custodian. Here, too, investors have got back a few peanuts, but the big losers have seen no sign of  getting their money yet. 
 
(Note: Mr GK Pillai's designation has been corrected)

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COMMENTS

s sitaraman

3 years ago

In India, Robbers and dacoits and buccaneers,conmen and hoodwinkers all operate thro stock exchanges with the connivance of regulators-we need a person -tough and bold- like Preet Bhara in NW attorney's office to bring down to dust such criminals who swallow public's money and digest within no time!

Vaibhav Dhoka

3 years ago

CRB of Bhansali is in public memoirs.In India it is absolutely impossible to get investors money refunded.This is due to judicial and investigative incomepence and above all investors greed plays big role.

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