MLM / Chain Money
PACL Scam: SEBI gets Rs30 crore by selling 30 luxury cars in first auction
Market regulator Securities and Exchange Board of India (SEBI) has managed to auction 30 luxury cars out of 47 owned by controversial PACL Ltd (erstwhile Pearl Agrotech Corp) that would help it garner about Rs30 crore, says a report.
 
Quoting Bhanu Kumar, regional manager of MSTC, which conducted the auction, the report from Business Standard, says, ""It was an excellent auction. About 109 bidders participated. 30 vehicles have been sold. The total sale value was around Rs30.5 crore. The remaining 17 vehicles could not meet the reserve price."
 
SEBI is selling these vehicles owned by PACL under the aegis of Supreme court-appointed Justice RM Lodha Committee. The Lodha committee is supervising the Supreme Court ordered process of selling PACL's assets across the country and refunding Rs49,100 crore collected from over 56 crore investors.
 
Among the vehicles that were put on sale includes a Rolls Royce, a Bentley, a Porsche and several other luxury cars and sports utility vehicles (SUVs) including Jaguars, BMWs, Audis and Lexus.
 
The apex court in an order on 2 February 2016 set-up a committee headed by its former chief justice RM Lodha to sell assets of PACL to refund investors Rs49,000 crore collected through collective investment scheme that were held as illegal by market regulator SEBI.
 
 Directing that no court in the country would entertain any plea in respect of the sale of PACL assets, the bench also restrained the PACL from going for any more investments from the public.
 
The court directed the committee to appoint experts to assists in the sale of land and directed the SEBI to appoint a nodal officer to for investor grievances.
 
The money to be refunded to the investors was allegedly collected by PACL and Pearls Golden Forest Limited - two companies belonging to Nirmal Singh Bhangoo-managed group - in the name of sale and development of agricultural land. 
 
As reported by Moneylife, the Indian government plans to file extensive legal documents in the Federal Court detailing how $133 million defrauded from poor and 'gullible' investors in India was siphoned off to buy property in Australia. (Read: PACL Scam: India eyes USD 133 million 'invested' by Bhangoo in Australia)
 
"India's premier policing body and its corporate regulator have sent teams to Australia in recent days in an attempt to recover the money they claim was defrauded from investors in India's $10 billion Pearls Ponzi scam. It (the Indian government) will also conduct investigations into dealings in Australia into what it terms a 'larger conspiracy'," the report filed by Greg Bearup and Anthony Klan says.
 
According to The Australian, the Indians have been assured that they will receive assistance to help recover the money and to investigate any crimes that may have been committed in Australia. India's Central Bureau of -Investigations claims that between 2009 and 2013 at least $133 million was illegally siphoned off by the directors of Pearls India - four of whom are now in jail awaiting a trial - and sent to Australia.

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Stock manipulation: Sybly Industries

Sybly Industries, earlier known as Sybly Spinning Mills, manufactures polyester yarn. This small-cap stock generated revenue of Rs77 crore over the past four quarters ended June 2016, down 6% from Rs82 crore reported for the same period a year ago. While the Ghaziabad-based company has reported rising sales, it reported a net profit of just Rs1 crore in the past four quarters ended June 2016 compared to Rs0.04 crore in the previous year.

The operating profit margin of the textiles manufacturer is abysmally low, ranging between 2%-5% over the past eight quarters. In the past, the stock has witnessed low-volume tading. On an average, over the one-year period ended May 2016, there were just about 50-60 trades in a day. The price movement was volatile, but remained range-bound. The sharp uptrend began from June 2016. Over the next three months, the number of trades shot up, averaging about 500 trades in a day. This rise in volume took the price up 201%, to a peak of Rs14.15 on 22 August 2016, from Rs4.7 on 30 May 2016. Taking a longer horizon, the price moved up 1235% to this peak from a low of just Rs1.06 on 28 March 2014. Over this period, sales have been flat and there has been no improvement in profits which could have warranted such a massive price rise. At the peak, the stock was trading 57 times its earnings. What has led to this massive price surge? As we write, the stock was down 21% on 24 August 2016 to Rs11.12 from the recent peak. Are the regulators watching? 

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COMMENTS

Dr MeherPrasanna

6 months ago

manipulated scrip ?

37% districts short of rain despite average monsoon; September crucial
After two consecutive droughts, India received average rainfall -- 2 per cent less than the 100-year average -- by the end of August 2016, but within that range, more than a third of the country is short of rain, according to India Meteorological Department (IMD) data.
 
In 610 of 641 districts for which data is available, 389 districts received average or excess rain, while 221 received deficient or scanty rain in the first three months of the four-month-long monsoon season. This means September rainfall will now be important to make up for these widespread deficits.
 
The sowing of kharif (summer monsoon) crop was 5 per cent more than the average by August-end because more than half of India's districts received average rain, reiterated by the Reserve Bank of India in its 2015-16 annual report: "As on August 18, 2016, the cumulative rainfall was at its long period average (LPA) level as against 9 per cent below LPA in the corresponding period of the previous year, leading to an increase of 6.5 per cent in kharif sowing, thus far." 
 
The monsoon deficit is the greatest in northeast India, which is between 30 per cent to 40 per cent -- repeating the situation in 2013 -- followed by Punjab, Haryana, Gujarat and Kerala, where the deficit is between 20 per cent and 30 per cent of the average.
 
Rajasthan, Madhya Pradesh and Maharashtra have received 20 per cent more rain than average.
 
Though the area sown is more than the average, some crops have taken a hit.
 
While 40 per cent more pulses were sown than average till the end of August, cash crops like sugarcane and cotton were 15 per cent short of the average.
 
Extreme rainfall events in central India, the core of the monsoon system, are increasing and moderate rainfall is decreasing -- as a part of complex changes in local and world weather -- according to a clutch of Indian and global studies reviewed by IndiaSpend in April 2015.
 
Over a third of India -- 221 of 610 districts -- is short of rain in a year when the government's weather agency, the IMD, and private weather agencies, such as Skymet and Weather Risk Management Services, and international monitoring agencies such as the European Centre for Medium-Range Weather Forecasts and the International Research Institute for Climate and Society, USA, had predicted an above-average monsoon for 2016. 
 
The three monsoon months of 2016 bettered the three deficit years of 2012, 2014 and 2015 but lagged 2011 and 2013, which were average monsoon years, with respect to the proportion of districts facing rain shortfalls.
 
Rains were scarce in a fourth of districts in 2011 and 2013, a third of districts in 2016 and half of India's districts in 2012 and 2014.
 
The average sowing area in India till August-end is 97 million hectares, against which 102 million hectares has been sown for the kharif season 2016.
 
Sown area by the end of the kharif sowing season is 106 million hectare, which is normally achieved by the first week of September.
 
Irregular rainfall in the cotton-belts of Maharashtra and deficient rains in Gujarat have resulted in less-than-average sowing of cotton. 
 
In Maharashtra, sowing of jowar (sorghum) -- a traditional non-irrigated crop -- dipped 20 per cent, from 6.1 lakh hectares to 4.9 lakh hectares.
 
The sowing of soyabean, a relatively new entrant on farms, is growing. The area under soyabean in Maharashtra was 3.9 million hectare, 0.5 million above the average of 3.4 million hectare, as of August-end.
 
"The cost of cultivation for cotton is high, and has risen especially after 2008-09," Ayaz Khan, a soyabean and tur cultivator from Vidarbha, told IndiaSpend.
 
Unirrigated cotton produces a fourth to a fifth of the yield of irrigated cotton; 200 to 300 kg per acre against 1,000 kg per acre, said Khan. "Soyabean gives you assured output in less than three months without irrigation. Further, tur and soyabean require less human effort to cultivate."
 
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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