Securities Scam: Custodian puts Fairgrowth’s Delhi property under hammer

The residential property in Delhi's upmarket Greater Kailash areas belongs to Fairgrowth Financial Services, one of the entities notified by the Custodian in the securities scam

The office of the Custodian, appointed under the Special Courts Act of 1992, has put a Delhi-based residential property of Fairgrowth Financial Services under the hammer. Fairgrowth is one of the entities notified by the Custodian under Section 3(2) of the Act in the 1992 securities scam.
The property, plot no E-162 in Greater Kailash area is a free-hold plot of about 250 sq yards together with two and a half storeyed residential building with a basement. The Custodian has not mentioned any reserve price for the property in the public notice released in the newspapers, but the earnest money deposit (EMD) for the bid is Rs50 lakh.

B Ratnakar, the late former chairman of Canara Bank, was the promoter-chairman of Fairgrowth . In his last interview ever in 1991, given to the Business Today magazine, Mr Ratnakar had articulated his vision to convert Fairgrowth Financial Services into a massive financial services conglomerate.

Fairgrowth was later bought over by Acharya Arun Dev, a controversial person who surfaced in 1994 to bail out the Harshad Mehta group by claiming ownership of the ‘benami’ shares they had introduced into the market. Mr Dev later sold Fairgrowth to one Karsanbhai Patel (not from Nirma). Mr Patel was allowed to take the company, but without touching properties and assets that were attached by the Custodian under the Special Court Act.

In 2002, the Fairgrowth issue was back in the Special Court , with the Custodian filing a contempt petition against the KK Patel management and seeking their imprisonment. It alleged that Mr Patel and company had no new business to speak of, but had instead transferred staff provident fund money and various dividends receivable by Fairgrowth into the new account.

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Property Dealers in Delhi NCR

5 years ago

Thanks for sharing awesome information, keep it up.

ICICI Securities appoints L Govind as head of structured products and corporate debt restructuring

L Govind joins ICICI Securities from Reliance Capital and would look after structured products and corporate debt restructuring business

ICICI Securities Ltd appointed of L Govind as head for its structured products and corporate debt restructuring business. He joins ICICI Securities from Reliance Capital Ltd (RCL) where he monitored RCL’s investments in corporates (both debt and equity).
“Structured products and corporate debt restructuring is one of ICICI Securities key businesses and Govind’s wide experience in the area of corporate banking, credit and finance, asset reconstruction, including funding and recovery, and restructuring of distressed assets will further the relationship with our clients and strengthen our product offering,” said Ajay Saraf, executive director, ICICI Securities Ltd.

Mr Govind is a Post Graduate Diploma in Management from IIM Lucknow and also holds a BE degree in Mechanical Engineering from Vikram University, Ujjain. He is a visiting faculty at the Institute of Chartered Accountants in India as well as Institute of Company Secretaries. He is also winner of the Euromoney Award for Advanced Project Finance, conducted by Richard Tinsley, Faculty, Euromoney in Pune in 2001.


Economy & Nation Exclusive
RIL’s KG basin project is affecting irrigation, rice cultivation

The natural gas development by RIL is adversely impacting agricultural activity in the fertile “rice bowl” area of the Godavari districts in Andhra Pradesh, former Union secretary EAS Sarma said in a letter

EAS Sarma, former secretary of the Government of India, has again raised the issue of land subsidence in the Krishna Godavari (KG) basin due to the gas development work being carried out by Reliance Industries (RIL). The natural gas development by RIL is adversely impacting agricultural activity in the fertile “rice bowl” area of the Godavari districts in Andhra Pradesh, Mr Sarma said in a letter sent to chief secretary-AP, secretary-ministry of environment & forests (MOEF) and secretary-ministry of petroleum.

Earlier, the AP High Court had directed the MOEF to re-open the environment impact appraisal of the project to assess the impact of RIL’s gas development project in KG basin. An expert group constituted by the MOEF has since submitted its report to the ministry and at present the matter is pending before the court.

The Krishna-Godavari basin is spread across over 50,000 sq km in the Krishna River and Godavari River basins in Andhra Pradesh. The site is known for the D-6 block where RIL discovered the biggest natural gas reserves in India in 2002. It was also the world's largest gas discovery of 2002.

Recently, Prof G Krishna Rao, a retired Professor of geology, who is also a petitioner in the case pending before the high court, collected extensive evidence on the land subsidence that has taken place in the KG basin. Accordingly, there is increasing ground level evidence of land subsidence taking place in the KG basin as a result of gas development by RIL, Mr Sarma said.

KG Basin effect on Andhra Coast in 2007

He said, “Such land subsidence has already started affecting the irrigation drainage channels in the basin and agricultural activity, quite significantly, as corroborated by the “crop holiday” announced by the farmers of the Godavari districts during 2011. The farmers have already started feeling the increased cost burden that could be indirectly attributed to land subsidence. The land subsidence has also affected the quality of the ground water aquifers in the area by increasing their salinity.”

Instead of addressing the root cause of the deterioration of agricultural activity, Mr Sarma said, the state government is in a hurry to incur huge expenditure on ‘modernisation’ of the irrigation system that will benefit only the contractors. Even the MOEF and the ministry of petroleum have collectively failed to address this problem and its overall impact on the economy of AP, the former secretary said.

Due to the lethargy shown by the AP government as well as the central ministries, RIL has not cared to identify the magnitude of the problem as it is primarily interested in quickly recovering its investment and earn windfall profits without addressing the larger destruction that is wrought on the environment of the region and the economy of the state, Mr Sarma alleged.

A study done by a team of experts from Andhra University, and Marine and Earth Sciences Group of the Space Application Centre, which include K Nageswara Rao, P Subraelu, KChV Naga Kumar, G Demudu, B Hema Malini, R Ratheesh, S Bhattacharya, AS Rajawat and Ajai, also revealed that the impending sea-level rise would seriously impair agricultural activities in the lower parts of the AP coastal zone, especially in the low-lying Krishna-Godavari twin delta region, which is considered as the rice-bowl of the state.

KG Basin effect on Andhra coastline in 2009

“If the sea level rises by 0.6 metres as predicted by IPCC (2007), an area of about 532 km including 150 km in the Krishna-Godavari deltas presently lying between the shoreline and the 0.6 metres elevation would be permanently submerged under the future low-tide level. Further an area of about 1,233 km including 894 km area within the Krishna-Godavari deltas lying between the present high tide line (1.5 metres) and the future high-tide line (2.1 metres) would go under the future inter-tidal zone, affecting the cropland over 319 km, aquaculture over 499 km and plantations over 279 km, besides threatening the survival of 1.29 million people living in 282 coastal villages along the entire AP coast,” the study revealed.

Here are the details of the study…



Govind Shanbhag

5 years ago

MDT - I do not think Reliance Gas is only to be blamed which has affected rice cultivation in East and West Godavari Districts perhaps rice bowl of India. One more aspect need to be studied by environmentalists is extensive prown/ fish cultivation in the area. Large no.of ponds/ lakes have been built on the existing cultivable land and I understand in and around the area of these ponds/wells have become saline land. Farmers in the area have become rich not because of rice cultivation but due to fish rearing. Do you remember the case during late Narasimha Rao's regime, some rich farmers had visited Delhi with huge amount of cash to purchase helicopter(s) to enable them to transport fish from Andhra to West Bengal.



In Reply to Govind Shanbhag 5 years ago

Saline soils and saline groundwaters are some evidences for subsidence of delta land. There are other evidences like rise of tidal water in drains and water logging conditions in the fields. Land has sunk by 1.0 to 1.5 m. Unfortunately the Govts. seem to be not bothered to verify this calamity.

Nagesh Kini FCA

5 years ago

The RIL KG exploration has been faulted from day one. Their projections have failed. Now with massive environmental degradation and possible sea level risings makes a mockery of sustainability over development.
Americans are holding back oil explorations in Alaska and Gulf of Mexico fearing ecological considerations.
The MoEF and Power has to instantly scap the entire project and RIL has the capacity to withstand the loss.
It is now or never withdraw the approvals.
If the Tax laws can be amended retrospectively going back 60 years this also ought to be possible.


Prof G Krishna Rao

In Reply to Nagesh Kini FCA 5 years ago

Thank you for your concern for the people of deltas for their displacement and people of the country for depriving them of food security

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