Book Reviews
Review of The Mighty Fall

Citizen Power Revealed

What do ex-President Pratibha Patil and Dow India have in...
Premium Content
Monthly Digital Access


Already A Subscriber?
Yearly Digital+Print Access


Moneylife Magazine Subscriber or MSSN member?

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Petraeus resigns as CIA chief over extra marital affair

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

Washington: David Petraeus the director of Central Intelligence Agency (CIA) has resigned over an extra marital affair, saying his behaviour was 'unacceptable', reports PTI.
The top intelligence official of the US submitted his resignation to the President Barack Obama during a meeting at the White House yesterday. Obama has accepted his resignation.
"Today, I accepted his resignation as Director of the Central Intelligence Agency," he said in a statement.
Petraeus, in a letter released to the CIA work force, has disclosed his marital affair. "After being married for over 37 years, I showed extremely poor judgement by engaging in an extramarital affair. Such behaviour is unacceptable, both as a husband and as the leader of an organisation such as ours," he wrote in an email.
Obama said that he is completely confident that the CIA will continue to thrive and carry out its essential mission.
"I have the utmost confidence in Acting Director Michael Morell and the men and women of the CIA who work every day to keep our nation safe," he said while praising Petraeus on his extraordinary service.
"David Petraeus has provided extraordinary service to the United States for decades. By any measure, he was one of the outstanding General officers of his generation, helping our military adapt to new challenges, and leading our men and women in uniform through a remarkable period of service in Iraq and Afghanistan, where he helped our nation put those wars on a path to a responsible end," he said. 
The US President said that as Director of the Central Intelligence Agency, Petraeus has continued to serve with characteristic intellectual rigour, dedication, and patriotism.
Before joining the CIA, Petraeus successfully headed the US army operations in both Iraq and Afghanistan.
"Dave's decision to step down represents the loss of one of our nation’s most respected public servants. From his long, illustrious Army career to his leadership at the helm of CIA, Dave has redefined what it means to serve and sacrifice for one's country," James Clapper, Director of National Intelligence, said.
"Since he took over as Director in September of last year, he and I have worked together to tackle some of the most challenging issues faced by the Intelligence Community in more than a decade," he said.
Under his leadership, the CIA remained instrumental in providing policy makers decision advantage through the best possible intelligence, Clapper said.
"Whether he was in uniform leading our nation's troops in Iraq and Afghanistan, or at CIA headquarters leading the effort to generate intelligence used to keep our nation safe, Dave inspired people who had the privilege of working with him," he added.
Regretting the resignation of David Petraeus as director of the CIA, Senator Dianne Feinstein, chairman of the Senate Intelligence Committee, said this is an enormous loss for the nations intelligence community.
"Director Petraeus is an individual who has devoted nearly 40 years of service to his country, rising through the ranks to become a distinguished four-star general and commander of American forces in Iraq and Afghanistan," she said.
"I wish President Obama had not accepted this resignation, but I understand and respect the decision. David Petraeus is one of Americas best and brightest, and all Americans should be grateful for his service. Deputy Director Michael Morell will serve as acting director, so I am confident the agency is in very good hands until the president selects a replacement," Feinstein said.
Republican Senator, John McCain, said that Petraeus will stand in the ranks of America's greatest military heroes.
"His inspirational leadership and his genius were directly responsible after years of failure for the success of the surge in Iraq," he said.
Meanwhile, news reports said Petraeus extramarital affair was revealed over the course of an FBI investigation.
"The FBI had been investigating an unrelated and much broader case before stumbling on the affair," Fox News reported.
"FBI during the course of this investigation, the name of biographer Paula Broadwell came up. FBI followed that lead and in doing so, uncovered his affair with her. The FBI for some time was concerned that perhaps Petraeus was some sort of victim, but there has been no evidence discovered to back up such concerns," the news channel said.




4 years ago


Did Gadkari use layers of defunct companies for Purti investment?

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.


To read other latest articles on Nitin Gadkari, please click here.

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).




4 years ago

GadkariG is too naive a juggler to head a national party that is in head-on compettition with some of the sauvest jugglers in the World.


4 years ago

However thick skinned he may be, however more IQ he may have over and above that of Dawood Ibrabim, sooner or later he wiil have to quit being President of BJP.

Country cannot afford to loose the unique talents of such an eminent person.

I therefore propose that he be elected as the President of National Shell-Companies Asscociation with Gurumurthy of RSS as his CA of the association.

Any one to second the proposal?

Mohan Raj

nagesh kini

4 years ago

Though Mr. Gurumurthy belows to the same profession as I do, the 'cleanshit' job he has done is extremely unprofessional.
Very superficial to say the least.
Now that the Income Tax Department has chanced upon enough 'dope' on the Puti investments, the MCA ought to come out with a "white Paper" on what the ROCs have done on the so-called shell companies. There are enough provisions in the laws to act upon.
Unless the ruling party has struck a deal to push it under the carpet in exchange for not pressing for investigations in the Vadra deals.
This is more or less akin to the list of 700 entities with Swiss bank account.



In Reply to nagesh kini 4 years ago

Thanks.Compared to Charges on Vadras and Prime land in Mumbai since 30 years for Rahul & Sonia,Gagkari's case looks Minicure. GOI does not investugate them,No "White Paper" from anybody as suggested by you,Even NO Investigation atleast,which is very very Unfair.In India -All Questions only but No Required Information by GOI or Heads of concerned Departments clarifications-except Politicians Bullshitting.Then How can Indins Gets correct Conclusions?


4 years ago

AS Explained by Mr.Gurumurthy,CA to BJP Leaders,Main Funding of Rs.56 Crores is by Mr.Mhaiskar through his 2 Companies out of 20 stake holders in Purti.Investigating these 2 companies Funding of Rs.56 Crores may be useful in concluding whether Mr.Gadkari is Fair Sociel Enterprenuer.
( 2 ) Regarding other 18 shell companies-I find nothing wrong in them as THOUSANDS of Shell Companies Exist in INDIA,for Routing Own Funds.In Relians itself many Shell Companies exist .Our Acts & Rules are to be Blamed for it ,as in Conclusion of all Shell Companies it is found that Nothing wrong Done.( 3 )I wonder why Registrars in all States simply Register Looking at Papers Submitted,without conducting KYC norms,followed by all Banks,SEBI & other Financial Organisations.(B) Alternatively,as done Police verification for PassPorts,after Registering - POLICE VERIFICATION must be done,sothat if any Anomoly is Found,not Convinced -Registration can be Cancelled.This simple work can avoid many Shell/Bogus/Fradulant Companies .


4 years ago

Great article.

So many things are so wrong so blatantly. Yet Mr Gurumurthy has found nothing wrong.

The trust I built up on Gurumurthy, all these years, got shattered in this one instance.

What a fraud Gurumurthy is to be supporting such big frauds of Ghadkari?

Mohan Raj
9th Nov 12

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)