Petraeus devoted nearly 40 years of service to the US, rising through the ranks to become a distinguished four-star general and commander of American forces in Iraq and Afghanistan before joining the CIA as director
According to investigations, Gadkari’s Purti Power and Sugar received funding from virtually defunct companies which do not have their own source of income. Even sources from the I-T department have labelled 18 investor companies of Purti as fake
Nitin Gadkari, president of the Bharatiya Janata Party (BJP), appears to have used layers of virtually defunct companies, which invested money in his Purti Power and Sugar (Purti). As of 30 July 2010, there were 20 entities registered as stakeholders in Purti, out of which 18 are acquired companies.
According to documents with Moneylife, Purti got its shares subscribed by second layer of companies. These second layer companies (virtually defunct companies) received funds (that were invested in Purti) from a third layer of companies.
The third layer of companies that provide funding to second layer of companies for investing in Purti are again virtually defunct companies and per se do not have their own source of income or revenues. Both the second and third layer companies did not report substantial revenues from their main business activities for which they were incorporated.
In fact, looking at the whole set of transactions, one can say that all these investment companies of Purti were acquired with the sole object to channelize the capital to the Gadkari company. Interestingly, capital structure of all these companies increased mostly in February 2010 and subsequent allotment was made in March 2010.
All the 18 second and third layer (acquired) companies have four persons, Kawdu Pandurang Zade, Manohar Madhavrao Panse, Nishat Vijay Agnihotri and Sagar Shripad Kotwaliwale as common directors. All of them were appointed as directors in and around first six months of 2009. Appointment of directors in all these companies were made with retrospective effect, reveals the report.
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On 30 March 2010, Global Safety Vision Pvt Ltd, owned by Dattatrey Pandurang Mhaiskar (the promoter of Ideal Road Builders—IRB group) provided a loan of Rs164 crore to Purti by creating a charge on all assets and liabilities on the Gadkari company. That means all the assets of Purti are mortgaged or hypothecated to Global Safety Vision. The Mhaiskar-promoted company is mentioned as promoter group entity of IRB Infrastructure, a listed entity on the Indian bourses.
The Directorate General of Income Tax (Investigations) officials, who conducted enquiry in the open premises of companies which invested in Purti, have shared all information retrieved from these investor companies with their Pune counterparts.
The Income Tax department’s Mumbai office also shared recorded statements of 13 people who were mentioned as ‘directors’ in the initial company that was floated.
According to I-T department sources, these companies in Mumbai, which were started with paid-up capital of about Rs2,000 to Rs3,000 are fake and inquiries revealed that they did not even find their books of accounts.
Earlier, the I-T department had said that people who were mentioned as ‘directors’ are men of no means and most of them are security guards, labourers and astrologers.
I-T sleuths at various locations had also found that offices were being made to look like genuine companies registered with the Registrar of Companies (RoC).
As suggested yesterday, a break of yesterday’s low triggered a sharp fall. The Nifty may see further downward below 5,645
The domestic market closed in the red for the second day on selling pressure in State Bank of India as the PSU bank saw an increase in its non-performing assets. Today the Nifty broke its 20-day moving average of 5,685 by hitting an intraday low of 5,678 and settled a little above it, at 5,686. The index may see further downward momentum if it closes below 5,645. The National Stock Exchange (NSE) saw a volume of 67.49 crore shares and an advance decline ratio of 571:1168.
The market opened soft tracking the weakness in the global markets. Overnight US stocks settled lower for the second day on concerns of the government’s ability to reduce its fiscal deficit. The Asian pack was also down in morning trade today on worries about the economic outlook.
Back home, the Nifty opened eight points lower at 5,731 and the Sensex resumed trade at 18,833, 13 points lower. The market was volatile since the opening bell with the benchmarks hovering on both sides of the previous closing levels.
Buying in select stock pushed the indices into the positive in early trade. The gains helped the benchmarks hit their highs in the first half hour wherein the Nifty rose to 5,752 and the Sensex stood at 18,894.
However, the gains were short-lived as selling in PSU banking stocks led the market into the negative terrain in late morning trade. State Bank of India, which declared its second quarter results, saw an increase in restructured loans and lower-than-expected net interest income.
There was no respite in the second half of trade as a weak opening of the key European indices and fresh revelations by social activist Arvind Kejriwal added to the gloom. The market dropped to its lows at around 1.30pm—as soon as Kejriwal began his address. At the lows the Nifty fell to 5,678 and the Sensex tumbled to 18,656.
The absence of any positive triggers—both domestic and global—resulted in the market settling near the lows and in the red for the second day. The Nifty closed 52 points (0.91%) lower at 5,686 and the Sensex declined 163 points (0.86%) to finish trade at 18,684.
Among the broader indices, the BSE Mid-cap index tanked 0.99% and the BSE Small-cap index declined 0.69%.
Today’s rout saw all sectoral indices settling lower. The top losers were BSE PSU (down 1.70%); BSE Realty (down 1.64%); BSE Metal (down 1.49%); BSE Oil & Gas (down 1.33%) and BSE Bankex (down 1.20%).
Four of the 30 stocks on the Sensex closed in the positive. The gainers were Bajaj Auto (up 0.36%); Maruti Suzuki (down 0.32%); Cipla (down 0.14%) and HDFC Bank (down 0.09%). The chief losers were State Bank of India (down 3.89%); Tata Steel (down 3.25%); ONGC (down 3.05%); Sterlite Industries (down 2.38%) and BHEL (down 2.135).
The top two A Group gainers on the BSE were—Mahindra & Mahindra Financial Services (up 6.70%) and Ashok Leyland (up 6.64%).
The top two A Group losers on the BSE were—Apollo Hospitals Enterprise (down 6.21%) and Aurobindo Pharma (down 4.62%).
The top two B Group gainers on the BSE were—Aqua Logistics (up 20%) and JK Agri Genetics (up 19.99%).
The top two B Group losers on the BSE were—Blue Chip India (up 15.58%) and Sujana Universal Industries (down 15.50%).
Out of the 50 stocks listed on the Nifty, seven stocks settled in the positive. The key gainers were Cairn India (up 1.01%); UltraTech Cement (up 0.71%); Power Grid Corporation (up 0.63%); Maruti Suzuki (up 0.27%) and Lupin (up 0.05%). The losers were led by SBI (down 3.98%); Tata Steel (down3.89%); ONGC (down 3.07%); IDFC (down 2.90%) and Sesa Goa (down 2.83%).
Markets across Asia settled mostly in the red for another day on worries of the slowdown in the US. A clutch of positive economic indicators from China failed to enthuse investors.
The Shanghai Composite fell 0.12%; the Hang Seng declined 0.85%; the Nikkei 225 dropped 0.90%; the Straits Times shed 0.09% and the Seoul Composite declined 0.52%. Among the gainers, the Jakarta Composite rose 0.13% and the Taiwan Weighted surged 0.70%. The KLSE Composite was flat with a positive bias.
At the time of writing, the key European markets down between 0.28% and 0.92% and the US stock futures were mixed.
Back home, institutional investors were net buyers in the equities segment on Thursday. Foreign institutional investors brought in funds amounting to Rs261.21 crore and domestic institutional investors pumped in Rs84.59 crore into stocks.
Power Finance Corp along with Tata Capital will set up a $1 billion private equity fund that would mainly focus on financing for domestic power projects. PFC would have 49% in the private equity fund and the remaining shareholding would be owned by Tata Capital. PFC settled 2.10% down at Rs186.05 on the NSE.
CESC on Friday said it has bagged a contract to distribute power in the Nigerian city of Port Harcourt. CESC, which has won the distribution franchisee bid as part of consortium of Nigerian partners and investment firms, would cover 48,000 sq km and expected an annual turnover of $180 million. CESC fell 0.16% to close at Rs274.65 on the NSE.
TTK Healthcare plans to invest about Rs 40 crore in the next couple of years in the region to set up new facilities to expand its food business. The company is vigorously pursuing activities to bring out new products as well as improvements existing products. The stock advanced 1.64% to settle at Rs410 on the NSE.