Citizens' Issues
OROP implementation notification issued
The government on Saturday issued the notification regarding implementation of 'One Rank One Pension' for defence personnel.
 
The government had announced on September 5 the modalities for implementation of OROP. About 25 lakh military personnel are going to benefit from the scheme.
 
According to a defence ministry statement, the pension of past pensioners would be re-fixed on the basis of pension of retirees of the 2013 calendar year and the benefit will be effective with effect from July 1, 2014.
 
Pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retiring in 2013 in the same rank and with the same length of service. Pension for those drawing above the average shall be protected.
 
Arrear will be paid in four equal half yearly installments.
 
However, all family pensioners, including those in receipt of special/liberalized family pensioners, and gallantry award winners shall be paid arrears in one installment.
 
In future, the pension would be re-fixed every five years, the statement read.
 
"Personnel who opt to get discharged henceforth on their own request will not be entitled to the benefits of OROP. It will be effective prospectively.
 
"The government has decided to appoint a judicial committee to look into anomalies, if any, arising out of implementation of OROP. The Judicial Committee will submit its report in six months," it said.
 
"Detailed instructions along with tables indicating revised pension for each rank and each category, shall be issued separately for updation of pension and payment of arrears directly by Pension Disbursing Agencies."
 
The annual expenditure on OROP would be Rs.8,000-10,000 crore at present and will increase further in future, the statement added.
 
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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Economy & Nation Exclusive
Will New Laws Stop Chain-money Schemes?
The Parliamentary committee on Finance turns its spotlight on multi-state cooperative societies as a major conduit for illegal chain-money schemes
 
Ponzis, money circulation schemes, dubious chit funds, multi-level marketing (MLM) schemes or pyramid companies masquerading as direct selling companies, are the scourge of India. The problem is gigantic. In fact, it so big that the massive refunds ordered by the Securities & Exchange Board of India (SEBI) in the case of Sahara group companies (Rs25,000 crore plus interest) or PACL (Rs49,100 crore) do not even begin to scratch the surface of the money robbed from ordinary savers.
 
The parliamentary standing committee on finance, headed by Veerappa Moily, has done extensive work on Ponzis and presented some startling findings in its report submitted in October 2015; it also recommends new legislation to bring illegitimate money-raising companies to book. Unfortunately, the excellent analysis of issues has not translated into a workable set of recommendations to deal with this large-scale loot that exploits the greed and gullibility of people across the economic spectrum.
 
The standing committee’s discussions show that there is no shortage of regulators or statutes—both Central and at the state level—to curb money circulation schemes; but they have failed to deliver results. The Chit Funds Act, 1982, and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, are Central legislations implemented by the states which have not been deployed effectively. Then there are multiple regulators who do not bother to act until it is too late. Consequently, unscrupulous companies “take advantage of this regulatory vacuum/lacuna” between various statutes and regulators to plunder large sums of money. 
 
The parliamentary committee has recommended a “model Central law that would be comprehensive and all-encompassing including in its ambit collective investment schemes, chit funds, Direct Selling Schemes and such other activities, which are permissible but are defined and regulated in a dispersed manner.” It wants the law to also spell out non-permissible schemes and prohibited activities and to ensure that legislative provisions are accompanied by “effective administrative and enforcement measures” to ensure that people’s hard-earned savings are duly protected.  
 
Further, it recommends capital adequacy requirements for money-pooling companies, capping commissions for garnering deposits at 2%, a deposit-linked insurance cover, and extension of the scope of special courts provided for in the recently enacted Securities Laws (Amendment) Act, 2014, to deal with Ponzis and money circulation schemes.
 
Many of these suggestions appear to have emanated from SEBI, which has always been a reluctant regulator of collective investment schemes, although it received great kudos for bringing the Sahara group to its knees. The committee’s deliberations note that SEBI had proposed the creation of a new regulator for all money collection schemes. All this finds an echo in the model Central law suggested by the committee, except that it leaves the question of an independent regulator for money pooling schemes open for a ‘considered’ decision. 
 
While a strong new statue and special courts sound good on paper, it is unclear how this will work in practice, unless various high courts and district courts agree not to entertain pleas by dubious Ponzi operators and grant a stay against regulators’ orders. PACL is a classic case where the company doubled the money collected from Rs25,000 crore to Rs49,100 crore precisely because it obtained stay-orders from multiple courts on the SEBI action, prohibiting it from raising further funds. No statute can work, unless the government finds a way to stop the misuse of judicial forums. 
 
A shocking new element in the report is that “huge amount of money has been transferred out of Ponzi schemes to multi-state cooperatives, which has a weak regulatory regime at present.” These cooperatives, it says, have become “some kind of a shelter for illegitimate funds” and asks for a special audit to unearth ‘this scam’. The committee notes that such cooperatives, operating under the agriculture ministry, have increased 100-fold since 2010. The ministry was headed by Sharad Pawar, whose Nationalist Congress Party (NCP) was part of the ruling United Progressive Alliance in that period.
 
Unfortunately, the committee’s strong observations end with weak recommendations. It wants the department of economic affairs under the finance ministry to take charge of the enforcement aspect of financial schemes floated by multi-state cooperatives, since their present regulator, the Central registrar, does not have any financial regulatory infrastructure. The finance ministry’s track-record as a regulator is hardly encouraging and, given that the cooperative sector is controlled by powerful politicians, the recommendation has little meaning. 
 
In fact, its department of financial services (DFS) has not only been lambasted by the committee but also asked to submit an explanation for its inaction. The committee says DFS ‘remained a reticent bystander’ and ‘singularly failed’ to prevent the rampant violation of the Prize Chits Act, nor made a push to plug loopholes in the legislation. The finance ministry also faces heat for its failure to act on recommendations to strengthen the regulation of chit funds, submitted in 2013. It has been asked to decide on these in the next three months. Ironically, it was during the decade of the UPA government, when Ponzis were allowed to cheat investors with impunity.
 
Given the multiplicity of hapless regulators, including RBI and SEBI, the parliamentary committee recommends  Central legislation for depositor protection which respective states can amend in line with the Central Act. After tracking Ponzi scams for several years, it is unclear to us, at Moneylife, how this will be any more effective in preventing scams or catching them early enough. All it will do is aid some recovery and enforcement, provided there is a political will to do so.
 
Every major money circulation scheme has had the active involvement and support of powerful politicians. This is true of Sahara, Saradha, Alchemist, City Limouzine, QNet or scams in Orissa, Rajasthan, Madhya Pradesh and the North East. So, state governments initiate action only when there is a default and people make a noise, by which time, the money is already spent or siphoned off. A strong depositor protection law only leads to a few well-publicised arrests, but rarely does it recover investors’ money. 
 
In addition to these broad recommendations, the Direct Sellers Association of India (which has been lobbying hard to get away from enforcement action by the police), managed to get the committee’s attention through the Indian Institute of Corporate Affairs. The Institute has submitted a ‘research paper’, which suggests an objective ‘smell test’ for law enforcement agencies to apply at the time of investigation. This has found favour with the parliamentary committee which wants the ministry to create a regulatory framework and compulsory registration process for all direct selling businesses to provide an oversight mechanism and clarity on whether they are legitimate direct sellers or Ponzi/pyramid schemes.
 
Similarly, the All India Association of Chit funds (AIACF) also got an opportunity to complain about how it is maligned by unregistered chits or Ponzis claiming to be chit funds, and its business model hurt by the levy of service tax. The Association’s representatives told the Business Standard that there are 25,000 registered chit funds and five million investors. Amusingly, the Association seems to think that changing its name from chit funds to ‘fraternity funds’ will resolve its problem, says an article in the paper. 
 
Finally, there is a string of suggestions, such as setting up dedicated help desks for lodging complaints, encouragement to whistleblowers and the need for market intelligence. Had the standing committee followed its own recommendation and sought a case study on the modus operandi of a few of the notorious schemes that robbed people on a large scale (PACL or Saradha, or even a SpeakAsia), it could have obtained a clearer picture of why regulators and law enforcement agencies hesitate to act against these dubious companies.
 

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COMMENTS

gurupreet

3 months ago

GOOD NEWS...QNET VICTIMS IN MUMBAI...DEDICATED QUESTIONS & ANSWERS SESSION FOR QNET VICTIMS on Sunday 18th September 2016.

Ever since you lost your hard earned money in QNET SCAM, you all have multiple questions and facing multiple issues like :

1. Where and whom to approach for recovering your hard earned money?

2. How to help fight and stop this QNET SCAM?

3. How to teach your CHEATER UPLINES a lesson?

4. Issues regarding the “so called” “REFUND POLICY”.

5. Are you eligible for “Compensations”?

6. Issues regarding action buy police authorities.

7. What is the status of the court cases etc.

These are an example of just a few issues and concerns you are facing, but there is GOOD NEWS for you all. We have been working overtime to try and bring an end to these woes and issues faced by Victims of Financial Frauds like this QNETSCAM.

So guys and girls tomorrow is the BIG DAY finally , Please do join us tomorrow (Sunday) afternoon at 1.30 PM sharp at Andheri east, outside Sarangi Restaurant (Just 1 minute from the Andheri station on the east side).

Please do come and also inform other victims of the QNETSCAM.
Tomorrow (Sunday) afternoon sharp 1.30 PM, outside Sarangi Restaurant , Andheri-east, Mumbai.

Please note we have limited seats, first come first served basis allotment..so make sure to reach in time __/\__ . You can contact on 7498063701 in case of difficulty in locating us :)

Jai Hind.

Agyat Vyakti

9 months ago

Off the topic. This is just for awareness.. Qnet and MLM are using friends and relatives to dupe you... You may like to read Qnet modus operandi with screen shots and facts and how to avoid them here ... Please share for public interest.. Qnet Scam in delhi by Ashwin Baluja and Prithvi Raj Grover http://qnetindiascam.blogspot.in/

jitu moni

10 months ago

http://www.moneylife.in/article/qnet-mpi...
The special court has rejected anticipatory bail applications of two directors of Vihaan, Suresh Thimiri of Transview as well as Malcolm Desai and Michael Ferreira, the stakeholders of Vihaan that handles QNet's MLM operations in India

The special Maharashtra Protection of Interest of Depositors (MPID) Court on Tuesday rejected anticipatory bail applications of five accused in the multi-crore QNet scam. This includes, Srinivas Rao Vanka and Magaral Veervalli Balaji, both directors of Vihaan Direct selling (India) Pvt Ltd, Suresh Thimiri, director of Transview Enterprises India Pvt Ltd, Malcolm Nozer Desai, who is 20% stakeholder in Vihaan and Michael Joseph Ferreira, former world champion of billiards and 80% stakeholder in Vihaan.
The Economic Offences Wing (EOW) of Mumbai Police, which is probing the case, had invoked the stringent MPID Act against controversial multi-level marketing (MLM) company QNet, which has denied any wrongdoing on its part.

Transview Enterprises is an associate company of Vihaan Direct Selling Pvt Ltd that handles QNet's multi-level marketing (MLM) operations in India since 14 April 2012. Vihaan Direct Selling, in which Michael Ferreira, the former world billiards champion, owns 80% stake, is a direct selling agent of QNet and had done large financial transactions with Thimiri's company Transview.

The EOW had booked several accused including the former world champion of billiards and five companies related with QNet, under the MPID Act. This means all the cases against QNet, Vihaan and all those involved in the MLM scam would be heard before the special MPID Court. Until now, the accused were being investigated for cheating and forgery under the Prize, Chits and Money Circulation Schemes (Banning) Act 1978, and for money laundering by the Enforcement Directorate (ED).

In February 2014, the ED registered a case under the prevention of money laundering act (PMLA) against QNet, Vihaan Direct Selling, Ferreira and QNet founder Vijay Eswaran and three other independent representatives (IRs) of the MLM operator.
Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri in his first information report (FIR) stated that his wife was duped for Rs30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet. Anand told the police, “They (IRs) had said that one of the bio-products my wife bought could be used to treat my 12-year-old son's brain-related diseases.”

Benny Stephan

1 year ago

Pacl India Limited has not refund the returns to the customer even after being ordered by Sebi and Sat to refund the returns in 3 months. The 3 months in which Pacl India Limited was supposed to refund the returns has ended on November 11, 2015. However Pacl didn't even start the refund procedure stating that the bank accounts of pacl is freezed by CBI. I was personally informed by a staff of Pacl India Limited in the Ghatkopar branch that the hearing which took place on November 05, 2015 was to release the bank accounts of Pacl India limited from CBI post which the refund procedure will begin which turned out to be a lie. On 07 November, 2015 we found that Sebi has filed a transfer petition to move any pending petitions against Pacl India Limited from High court to Supreme court stating that judgement of supreme court and High court should not contradict. My question is that why didnt Sebi file a transfer petition in high court to transfer all the pending petitions against pacl India limited to Supreme court in 2013. This is another way to delay the judgement by Sebi and now we have another hearing on January 16, 2016. The legal proceedings are very slow in India.

Benny Stephan

1 year ago

Ppacl India Limited has not refund the returns to the customer even after being ordered by Sebi and Sat to refund the returns in 3 months. The 3 months in which Pacl India Limited was suppose to refund the returns has ended on November 11, 2015. However Pacl didn't even start the refund procesure stating that the bank accounts of pacl is freezed by CBI. I was personally informed by a staff of Pacl India Limited in the Ghatkopar branch that the hearing which took place on November 05, 2015 was to release the bank accounts of Pacl India limited from CBI post which the refund procedure will begin. On 07 November, 2015 we found that Sebi has filed a transfer petition to move any pending petitions against Pacl India Limited from High court to Supreme court stating that judgement of supreme court and High court should not contradict. My question is that why didnt Sebi file a transfer petition in high court to transfer all the pending petitions against pacl India limited to Supreme court in 2013. This is another way to delay the judgement by Sebi and we only that we have another hearing on January 16, 2016. The legal proceedings are very in India.

sundararaman gopalakrishnan

1 year ago

High time the government cracked down on the Ponzi/Chain marketing schemes.
India is a country of gullible people and they get easily fooled.
Maybe likes of Amway and other big names also need to be investigated.

Stringent non bailable offences to be registered and strict action taken.

REPLY

Devika Singhaniya

In Reply to sundararaman gopalakrishnan 1 year ago

Qnet is still duping so many people at present in metro cities

Benny Stephan

1 year ago

According to the order from Sebi and Sat, pacl was ordered to refund the returns within 3 months. The order was dated 12 August 2015. Tomorrow 3 months will be completed, pacl has not started the refund at all. The company Pacl and the regulators Sebi and Sat has not helped the customers to get the refund and it seems the history will repeat again. It seems like Sebi is only interested to impose a fine of Rs7000 crore for their benefit even before ensuring that all the customers have got the promised returns.
It seems like Sebi will get the Rs7000 crore no matter what happens to the customers of pacl.

Vaibhav Dhoka

1 year ago

As stated ponzy schemes have thread with co operatives which are generally blessed with local politicians.Therefore gullible public easily fall prey to such schemes.Their intention to float scheme is loot and NO REFUND.It becomes too late as destruction has been done.In India one cannot expect justice from judiciary or quasi judicial bodies as we have no enforcement of orders,it takes years to get orders enforced.And public then forgets as one has proceed with life.

Sunil Rebello

1 year ago

Stopping / Controlling Chain-money Scheme:

SEBI site should have a link on its site to give all the list of entities / companies allowed to raise funds.

SEBI site should also have a link for individuals to query SEBI if they have any questionable entity and inform SEBI to take immediate / proper action to stop the entity, even if it belongs to a Political Party (however powerful)

Benny Stephan

1 year ago

One needs to also look at the number of hearing that happens against Pacl India Limited in a year. I think the number of hearing between Pacl and Sebi would be less than 3. The customer's hardly get to know what was discussed in the hearing. Sebi has taken up more than 17 years. Sat took 1 year. High courts wasted so much time. Pacl India limited took advantage of the judicial system. Only customers are suffering. I have been waiting for almost 9 years.
You can reach me at [email protected]

Benny Stephan

1 year ago

The case against Pacl India Limited has been running for more than 17 years. This clearly tells us the legal proceedings are very slow. This also tells us that the Regutors Sebi and Sat have been very inefficient. The local police, CBI, ACB have also kept their eyes closed and their pockets open to support such money collecting scam. The politicians have also done nothing to help the customer inspite of sending so many letters to take action against such companies. I have been waiting for the returns for more than 9 years from Pacl India Limited. Sebi and Sat has already ordered Pacl India Limited to refund the money in 3 months and this was ordered on 12 August 2015 and still Pacl has not refunded the returns as the bank acounts of Pacl India Limited is freezed by CBI. CBI Delhi has informed us that they will not release the bank accounts unless the case against Pacl is closed in High court and Supreme court.
I even contacted Sebi many times to get some update about the recent hearing which happend on November 05 2015 but Sebi told me that they can only provide limited information and for any detailed updated we need send an email to sebi. I have send 3 emails and they have replied to none of my emails. I have registered a complaint on the portal of sebi and I get no acknowledgement from sebi. I also registered a grievance on our PM Narendra Modis's portal and I get an acknowledgement stating that the grievance has been closed and the matter has been forwarded to CBI. This is how my PM helps me..I am very disappointed being an Indian Citizen. So many people has given away their life's already.
please help us.

REPLY

dvn

In Reply to Benny Stephan 1 year ago

whether earlier pm's helped investors. now a days for all the things our pm's name is dragged.

Benny Stephan

In Reply to dvn 1 year ago

Hi Dvn,
I am not here to say bad things about our PM Narendra Modi. I have only shared about a grievance I registered on our PM Narendra Modi's portal which is for helping the Indian citizen. I am just saying that the grievance should not be closed before fixing the problem. I have still not got the refund and I am certainly not satisfied.
I blame the system in India no matter who is our PM.
This system allows criminals to be a part of the political party, more than 90% of the politicians have been in jail for some or the other reason, be it theft, murders, scams etc.
I request that a candidate should not be allowed to represent any political party in India if the candidate has been in jail for any crime committed.
I also recommend an exam...let say if I need a job in a bank..there are exams like Ibps that needs to be passed. Similarly candidates who have not been in jail should be allowed to write an exam to become a deserving candidate to serve our nation representing any political party.
Dvn I am sorry if I hurt your sentiments by dragging our PM Narendra Modi in my comment but it is a fact that I am not satisfied as the problem is not fixed and the grievance has been closed.
I have mentioned that this case have been running for more than 17 years and by that people are smart enough to also understand that no politicians or any political party has helped the customer in receiving the refund.

dvn

In Reply to Benny Stephan 1 year ago

My point is simply that law and order is state subject. if state government do not act there is a limit for what a central government can do. also investors have to take care of themselves before investing such dubious companies. maybe i am harsh on the investors but this is the harsh truth.

Indian astronomers detect dying, giant radio galaxy
A team of astronomers working at the National Centre for Radio Astrophysics here has discovered an extremely rare galaxy of gigantic size.
 
This galaxy -- located about nine billion light years away -- emits powerful radio waves, the researchers found.
 
Such galaxies with extremely large 'radio size' are called giant radio galaxies.
 
"Our work presents a case study of a rare example of a GRG (giant radio galaxy) caught in dying phase in the distant universe," the researchers said.
 
This newly discovered galaxy known by its scientific identification 'J021659-044920' was discovered using the Giant Metrewave Radio Telescope (GMRT), an array of 30 fully steerable, 45-metre diameter antennas, spread out over a 30-km region around Khodad, near Narayangaon town of Pune district.
 
This project was led by Prathamesh Tamhane from the Indian Institute of Science Education and Research (IISER-Pune) working under the supervision of Yogesh Wadadekar at the National Centre for Radio Astrophysics.
 
While radio galaxies with size less than a million light years are common, giant radio galaxies are extremely rare, even more so, at large cosmic distances where only a handful have been discovered so far.
 
This newly discovered galaxy is the newest member of this elite group, the astronomers said.
 
The findings were detailed in the journal Monthly Notices of the Royal Astronomical Society.
 
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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