Justice Sen’s impeachment was the first in the Rajya Sabha, as he was found guilty of misappropriating Rs33.23 lakh, which was under his custody as a court-appointed receiver in the capacity as a lawyer and misrepresenting facts before a Calcutta court
New Delhi: Justice Soumitra Sen of the Calcutta High Court could go down in history as the first judge to be removed if Lok Sabha gives its consent next week to the motion for his impeachment, reports PTI.
With the Rajya Sabha (Upper House) approving with overwhelming majority of 189 votes in favour and 17 against, the issue is expected to come up in the Lower House on 24-25 August.
Mr Sen’s impeachment was the first in the Rajya Sabha, which was converted into a court, as he was found guilty of misappropriating Rs33.23 lakh, which were under his custody as a court-appointed receiver in the capacity as a lawyer and misrepresenting facts before a Calcutta court.
The first such case involved the impeachment motion in Lok Sabha of justice V Ramaswami of the Supreme Court in May 1993 which fell due to lack of numbers after Congress members abstained.
Incidentally, Union minister Kapil Sibal who was then a senior advocate, had presented the case of justice Ramaswami before the Lower House.
Justice PD Dinakaran, Chief Justice of the Sikkim High Court, against whom the Rajya Sabha chairman had set up a judicial panel to enquire into allegations of corruption, had resigned on 29th July this year, before an impeachment could be initiated against him.
Unlike Mr Ramaswami, Mr Sen presented his case personally backed by two lawyers.
Nifty’s range for tomorrow is 4,875 to 5,075
The market, which opened with marginal gains, shrugging off weakness in the global markets, ended lower on concerns of a slowdown in global economic growth. The Sensex fell 2.20%, which is the biggest one-day loss after 3 May 2011. The Nifty's intraday low of 4,932 is the maximum since 28 May 2010.
The market is in a volatile region where the Nifty's Friday's movement is based on the intraday move. If the Nifty is able to make an intraday high above 5,078 tomorrow, we can expect an upmove to the level of 5075. However, if it breaks today's low, we can expect it to fall to the level of 4,875.
Brushing aside the weakness in the Asian region, the domestic market opened in the positive today. The Nifty rose 21 points to resume trade at 5,078 and the Sensex opened at 16,910, up 69 points. Metal, auto, oil & gas and FMCG counters witnessed buying demand in initial trade, helping the benchmarks rise to their intraday highs. At the day's high, the Nifty rose to 5,079 and the Sensex touched 16,917.
However, the indices soon pared their gains and slipped into the negative as investors resorted to profit-booking on concerns about the pace of global growth. News that international finance major Morgan Stanley cut its global growth forecast for 2011 and 2012 pushed the market sharply lower in the mid-morning session. The slide continued through the post-noon session on a sharp decline in key European benchmarks.
The market fell to its intraday low in the closing half hour with the Nifty going down to 4,944 and the Sensex to 16,433. The market closed the session near the day's lows with the Nifty tanking 112 points at 4,944 and the Sensex settled at 16,470, down 371 points from yesterday's close.
The advance-decline ratio on the National Stock Exchange (NSE) was a poor 288:1387.
The broader indices were equally battered in today's market decline as the BSE Mid-cap index declining 2.05% and the BSE Small-cap index diving 2.62%.
All sectoral indices settled in the negative. The top losers were BSE IT (down 3.99%), BSE Bankex (down 3.51%), BSE TECk (down 3.15%), BSE Consumer Durables (down 2.55%) and BSE Metal (down 2.54%).
DLF (up 2.70%), Hero MotoCorp (up 0.67%), Hindustan Unilever (up 0.41%) and Jaiprakash Associates (up 0.26%) were the gainers on the Sensex. The top laggards on the index were ICICI Bank (down 5.03%), Wipro (down 4.72%), State Bank of India (down 4.47%), Sterlite Industries (down 4.28%) and TCS (down 4.23%).
The major gainers on the Nifty were DLF (up 3.02%), Reliance Communications (up 1%), JP Associates (up 0.78%), Hero MotoCorp (up 0.67%) and HUL (up 0.38%). The top losers on the benchmark were Reliance Infrastructure (down 7.44%), HCL Technologies (down 6.92%), Wipro (down 5.61%), Reliance Capital (down 5.57%) and IDFC (down 5.56%).
Most markets in Asia fell on global growth concerns and a weaker outlook for the technology sector following a disappointing outlook from Dell. The Chinese market fell on fears of another rate hike by the country's central bank.
The Shanghai Composite tanked 1.61%, the Hang Seng declined 1.34%, the Nikkei 225 slipped 1.25%, the Straits Times shed 0.13%, the Seoul Composite tumbled 1.70% and the Taiwan Weighted fell by 1.64%. Bucking the trend, the Jakarta Composite surged 1.71% and the KLSE Composite added 0.02%.
Back home, foreign institutional investors were net sellers of stocks worth Rs407.68 crore on Wednesday. On the other hand, domestic institutional investors were net buyers of shares worth Rs169.42 crore.
The government is likely to decide on the rights issue proposal of State Bank India in the next three months to fund its capital requirement for future business growth. The government would also examine other route of capital infusion like follow-on public offer, Qualified Institutional Placement (, etc, taking into view the second quarter provisional numbers. The bank requires as much as Rs30,000 crore capital over the next three years to fund its business growth without bringing down its Tier-I capital below 9%. The stock declined 4.53% to close at Rs2,072 on the NSE today.
Jet Airways, a private airline, is planning to increase domestic low-fare capacity to 80% of the total fleet from the present level of 72%. The airline may also launch more budget flights for short-haul international routes. Towards this end, the airline is considering the possibility of merging its low-fare service brands called Jet Konnect and JetLite. The stock skidded 3.79% to Rs293 on the NSE.
ITC, tobacco-to-foods giant, is likely to foray in the chewing gum market and take on multinational players like market leader Perfetti Van Melle and Wrigley's. ITC operates only in the sugar confectionery arena, which limits its size of business while Perfetti has varied products in the Rs4,000 crore confectionary businesses that include sugar confectionery (mints, candies, éclairs, etc) and gum. ITC closed at Rs203.80, down 0.22% on the NSE.
Hyderabad-based Variety Consultancy promises 15% return on investment per month for buying its forex and commodities training packages
Even as multi-level marketing (MLM) schemes such as Speak Asia and Tycoon Empire International Ltd are under the regulatory scanner, numerous such schemes continue to target gullible investors. Despite their exposure by Moneylife and regulators coming down on them, several MLM companies are still trying to sell the forex income dream.
One such company is Hyderabad-based Variety Consultancy, which promises 15% income on the principal 'invested' for every month for 14 months, and is selling forex and commodities training packages. It also promises additional earnings on referrals—a typical trademark of any pyramid scheme.
The company sells training and educational products, which can be used to learn and trade in foreign exchange (forex) and commodity trading. Its basic package costs Rs10,000 which the company says helps to "develop an understanding of basic trading techniques and risk control." The 'Silver' package provides basic to advance training along with practical training on a live forex trading platform, costing Rs1 lakh, while the 'Golden' package costs Rs2 lakh. It claims that the 'Golden' package provides 80 plus forex training videos, daily training classes, live forex training in its chat room for one year and daily trade reviews and mobile alerts.
Experts say that schemes promising such extraordinary returns work on unsustainable business models and are bound to collapse, giving investors a run for their money. In the past, companies such as Stock Guru India and Tycoon Empire, promising similar returns, have duped thousands of investors. In fact, Variety Consultancy has not mentioned where it would be investing the collected money. This raises more doubts on the scheme.
According to Variety Consultancy's scheme, on investment, you are eligible for 15% returns on the principal for 14 months, regularly. This is dubbed 'commission income'.
On getting more investors to invest in the same plan, the company guarantees 'referral' income. This is purely based on the number of references generated by you. As soon as any reference comes under you, then you will get 10% of the principal amount invested by the person being referred. Incidentally, there is no cap on the number of references under you.
The catch here is that the income on the principal decreases as level of your down line increases. So in level one, you get 4% income of the principal amount of your down line, in the next level it comes down to 2%. This goes to level 25, where the income would be just 0.25%.
Strangely, the company also promises giving regular income on your down line for 14 months. Again the income decreases as the level increases.
Moneylife had reported on how websites providing "stock option tips" have been luring investors by promising them returns as high as 100%, on investing in options and futures. They have found the legitimate options & futures trading market of the National Stock Exchange (NSE) a happy hunting ground for their shoddy business. See: Websites providing 'stock-options tips': By all looks, another huge scam in the making:.
A few states like Kerala and Tamil Nadu have started to curb such MLM and Ponzi schemes. Market observers say that the appropriate regulator and other state governments should act on such schemes before they dupe investors.