Companies & Sectors
US FDA to increase inspections of drug facilities in India

The USFDA’s presence in India is being increased to 19 from 12 American staff based in-country, including 10 dedicated specifically to medical products

The US Food and Drug Administration (USFDA) is increasing its inspections of facilities of drug makers in India, the second largest provider of finished dose products to the US, to ensure compliance of approved manufacturing norms.

 

The US health regulator, which has been cracking the whip against many Indian pharmaceutical companies, including Ranbaxy Laboratories and Wockhardt, is also recruiting and training additional drugs investigators in India.

 

The FDA said it is stepping up inspections in India in order to meet the requirements of the new Food and Drug Administration Safety and Innovation Act (FDASIA) — Generic Drug User Fee Amendments (GDUFA).

 

“In March 2013 the (US) FDA received approval from the Indian Government to add seven additional drugs investigators in India.

 

The USFDA’s presence in India is being increased to 19 from 12 American staff based in-country, including 10 dedicated specifically to medical products. Other staff include foods and devices inspectors, and policy analysts.

 

“Having these additional inspectors in-country will assist the agency in meeting our legislative mandates. So we are increasing our rates of inspection,” Kelly added.

 

Under the FDASIA, the USFDA is required to achieve the same inspectional schedule for foreign facilities as domestic manufacturers, and to clear the backlog of applications by the end of the first five-year user fee authorisation period.

 

India, as the second largest provider of finished dose products to the US with almost 10 per cent of that market, has, for many years, been a consistent provider of low-cost and quality medical products for many countries of the world.

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MP Rajeev Chandrasekhar asks PM, FM to rethink over Aadhaar-linked ATMs

According to the independent MP, brute force methods involving significant additional spending and increase in costs to consumers would not help financial inclusion and the government must relook at the RBI proposal on Aadhaar authenticated biometric ATMs

Rajeev Chandrasekhar, an independent member of the Rajya Sabha, who is also a member of the Standing Committee on Finance, has requested Prime Minister Manmohan Singh to relook at the Reserve Bank of India (RBI)'s proposal on Aadhaar authenticated biometric automated teller machines (ATMs).

 

In the letter sent to the PM, finance minister P Chidambaram and chairman of Standing Committee on Finance, Mr Chandrasekhar wrote, "Public policy towards financial inclusion should be devised intelligently with objective of lower banking costs and increased access for consumers and not using ill-conceived, brute force methods involving significant additional spending and increase in costs to consumers and please make no mistake, these costs will be passed on by banks to consumers."

 

Moneylife has been pointing out that this new directive (from RBI) will involve additional expenses, which bank depositors will end up bearing under the guise of technology costs. So far, Aadhaar has made no mention of who will bear the cost of biometric POS (point of sale) readers (according to a senior banker, they will cost Rs8,000 each) and biometric ATMs (Rs4 lakh for the machine plus installation, maintenance, electricity, etc). According to the news report, banks are expected to add around 200,000 POS machines and around 20,000 ATMs next year.

 

While Aadhaar-based authentication is touted as the panacea for financial inclusion of illiterate masses, it has not worked. Between 2004 and 2007, several banks launched biometric ATMs, with much fanfare, around the country. They did not work and had to be quietly discarded. Before embarking on another financial misadventure, the government needs to prove that there is better technology, which will work, especially since RBI’s internal committees have expressed several misgivings about the technology.

 

Here is the letter sent by the MP...

 

User

COMMENTS

Korath

3 years ago

The cost of cards needs to be understood in more detail. There is no doubt that the bar coded card is cheaper than the magnetic strip. The “chip and pin” is 34 times costlier than magnetic strip. In case of Aadhaar the biometrics are never stored in the card. It is only the number which is stored on the QR code. A fingerprint scanner is around thousand rupees. So practically there is negligible cost in the case of Aadhaar based authentication system. As far as security is concerned the comparison is “Online identity based on centralized database vis-a-vis local identity based on smart card”. As far as connectivity is concerned Aadhaar authentication is possible from the remotest corners on mobile networks and is done in less than ten seconds. Aadhaar coverage is nearly 500 Million and increasing by a million every day. No doubt the Aadhaar infrastructure is only available in India. Should India abandon the next generation, cost effective, accurate, efficient and secure authentication system for the primitive chip and pin technology because it benefits the smart card industry?

How to get your money back from Yash Birla group companies

Damyanti Vithalani, a Moneylife reader got her money back from Yash Birla group companies by filing a complaint to MCA portal. Those who invested in the corporate FDs of Zenith Birla (India) and Birla Power Solutions can follow her tactic to get their money back  

Moneylife has received several complaints from agitated readers and senior citizens who have not been able tot get their fixed deposit (FD) maturity amounts from Yash Birla Group companies – Zenith Birla (India) Ltd and Birla Power Solutions. Damyanti Vithalani, who fought for her refund says that a complaint to the Ministry of Company Affairs (MCA) website reached the right ears. Here is what you need to do to get your money back from the Yash Birla group companies.

  1. 1. First, you should file a complaint with the Investor Grievance Cell of the company. Many investors have not got a response to this. It does not matter, follow this step and then escalate the issue if you do not get a response. You can do this by filing an online complaint to MCA.
  2. On MCA website click on the right side menu under ‘Important Links’ click on ‘Lodge Investor Complaints’. It will provide you Investor Complaint Form. Fill in all the necessary information and submit your complaint online.
  3. While filling online complaint form on MCA website you need to enter Corporate identity number (CIN) of company. Zenith Birla India's CIN is L29220MH1960PLC011773 and Birla Power Solutions' CIN is L31101MH1984PLC032773.
  4. You can also file a case against company with the Company Law Board (CLB) under section 58A (9) of Companies Act, 1956 or under section 45QA of the RBI Act, 1934.
  5. You need to fill form no. 4 of Company Law Board Regulations and submit it with a demand draft of Rs50 to nearest CLB Bench.

Ms Vithlani managed to get her money back after filing complaints with the MCA as well as the CLB. She had invested in corporate FD of Zenith Birla India Ltd. On maturity, the company received her FD claim but they did not give any timeline for refunding the money. Later on, she filed complaint on MCA website and wrote emails to the legal team of Yash Birla group as well as the company’s board members, PVR Murthy and Vimal Dubey. She sent a copy of every email to MCA at [email protected] and Ministry of Commerce (MoC). She also filed her complaint with the CLB. After following this process for a month, she received Rs6 lakh from Zenith Birla India.
 

Between March and June 2013, the CLB had received as many as 130 complaints against other Yash Birla group company, Birla Power Solutions.  Applicants have filed complaints under section 58A(9) of the Companies Act, 1956 as the company has failed to repay their deposits-FDs as per the terms and conditions of acceptance of deposits.
 

On 30 August 2013, in view of the genuine claim of the applicants and also in exercise of powers conferred under section 58A (9) of the Companies Act, 1956, CLB Member Vimla Yadav directed Birla Power, as under:

  1. The company shall make the repayment of the Fixed Deposits with up-to date interest by Demand Draft by 05 October 2013 which shall be sent by Registered Post to the said applicant depositors.
  2. The company shall examine the Pre-mature cases of the depositors in the context of hardship cases and arrange to pay those who require the funds immediately.
  3. The company shall file an affidavit of compliance with the CLB by 10 October 2013 to the effect that it has repaid the deposits to the 130 depositors. A copy of the Affidavit to be sent to the Registrar of Companies, Mumbai Maharashtra as well.
  4. Any failure to comply with this order on the part of the R-I Company shall attract the penal provisions contained in sub-section 10 of section 58A of the Companies Act, 1956.
  5. The Bench Officer shall forward a copy of this order to the Registrar of Companies, Maharashtra also.
  6. In the event of non compliance of this order, the Registrar of Companies, Mumbai Maharashtra, 100, Everest Building, Marine Drive, Mumbai-2 shall initiate prosecution proceedings against the company and its every officer including the Mg. Director of the company before 30 November 2013.

As of March 2012, Yash Birla group companies owe Rs97.25 crore to small investors invested as fixed deposit. Birla Power Solutions owes the highest, Rs57.92 crore while Zenith Birla (India) owes Rs33.19 crore to FD holders. Birla Cotsyn (India) and Shloka Infotech have collected FDs worth Rs5.67 crore and Rs52.84 lakh from investors as of March 2012. Yash Birla group companies have not yet published reports for end-March 2013.
 

Are Yash Birla Group companies in deep trouble? Yash Birla Group of companies has been struggling with many issues like liquidity crunch, non-payment of loans, negative cash flows etc. Most of its companies are giving negative returns to the investors and its share prices are not even in double digits.
 

Corporate FD’s are unsecured in nature but many investors including senior citizens like Damyanti Vithalani  invested lakhs of rupees due to the goodwill of the Prestigious Birla Group. However, Yash Birla is more known for its lavish lifestyle on Page3 parties instead of his business moves, which shows the careless attitude of the group. The promoter’s stake in Birla Power Solutions is only 1.08%. It shows that the promoter himself lost faith in his company. For FY2013, Zenith Birla India reported a net loss of Rs44.62 crore while, during the June 2013 quarter it widened to Rs19.52 crore.

User

COMMENTS

shashikala rajpurkar

1 year ago

AS FAR AS BIRLA POWER SOLUTIONS IS CONCERNED WHEN ARE THEY GOING TO GV BACK THE INVESTORS HARD EARNED MONEY. YASH BIRLA IS HELL BENT ON HAVING GULPED DOWN THE MONEY OF SENIOR CITIZENS AND HAVING LAVISH LIFE. ALSO JAIPRAKASH ASSOCIATES BILCARE UNITECH LTD HELIOS MATHESON AND ANKUR DRUGS ARE ALSO NOT BOTHERED TO REPAY . I AS A SENIOR CITIZEN WOULD LIKE TO ASK WHEN IS THE GOVERNMENT GOING OPEN ITS EYES AND MAKE COMPANIES REPAY. THE JUDGES IN VARIOUS COURTS ARE GIVING DATES TO COMPANIES BECAUSE IT DOES NOT MAKE DIFFERENCE AS THEIR POCKETS ARE FULL AND THEY ARE HELL BENT ON MAKING SENIOR CITIZENS DIE .WHEN THEY TOOK MONEY FROM INVESTORS WHAT DID THEY DO WITH INVESTORS MONEY. PLS REPLY 9004192448

Manharlal Patel

1 year ago

So after seeing the situation from these companies i hereby requesting "Monelife" editor or the resposible personnel from Moneylife who can help us that if they can spread the name of these companies so that like us the money of the other who are interested to invest FD in these companies may benefited, otherwise their money also will be blocked like our.

JGC

1 year ago

My self Senior Citizen of 70+ Yr, have to receive Matured FD Amount as under :

1) Bilcare Ltd (Pune) - Rs.50,000/- from OCT 2013. Applied to Hardship committee CLB Mumbai and waiting.
2) Ind Swift Ltd (Chandigarh) - Rs. 92,000 from NOV 2013. I have filed criminal case u/s 138 NIA which is pending.
3) Ind Swift Lab. Ltd (Chandigarh) - Rs.48,000/- from OCT 2014. I have filed criminal case u/s 138 NIA which is pending.
4) Ind Swift Lab. Ltd (Chandigarh) - Rs.58,000/- will be DUE in JAN 2016.

Seems above companies are taking advantage of CLB and other GOVT. agencies for not making Due payment of Rs. 469 crores as per agreed FD terms and conditions.

Bilcare was to pay aprox. Rs. 168 Crores,Indswift was to pay aprox. Rs. 95 Crores & Indswift Lab was to pay aprox. Rs. 206 Crores to FD investors as per CLB.

GOVT claims their business is Non corrupt, transparent and investor / citizen friendly.

Manharlal Patel

1 year ago

i hereby request all of you that please take extreme care as i am not getting matured amount of FD from following companies
Helios & Matheson limited;
Birla Cotsyn limited;
Tricom limited;
Birla Power solutions limited;
Jaypee infratech limited; Jaiprakash Associates limited; Bilcare limited;
Unitech limited;
Ind Swift limited;
Ind Swift Laboratories limited

Manharlal Patel

1 year ago

i am 100% agree with Saluja comment that like Bajaj capital, Karvy Stock Broking has did the same they have collected money from depositors and now if we are writing them that we are not getting our money then they have no courtesy that atleast they should reply our mail but nobody care. so what to do in this that we are not understanding

u k saluja

1 year ago

Looking at the cases where no solutions have been found wherein the companies had raised funds by employing market widzards like Bajaj Capital Ltd. and others and collected huge sums as fixed deposits and earned commissions for themselves and thereafter companies refusing to pay back money when due despite orders issued by CLB/MCA I strongly feel that the negotiable instruments ACT should be amended and FDs issued by companies and banks should be considered as Negotiable Instruments and should be encashable when due and in case of failure to pay back should be considered an offence under the ACT. Moneylife should form a NGO to help sufferers and should not keep on advertising article for Birla company where the money was refunded to a FD holder whereas lakhs are suffering where the money has not paid back. Look at cases of Micro Technologies India Ltd., Avon Corpn.Ltd. and Unitech Ltd., who have found ways and means to dodge their small investors by either going in for winding up or seeking permissions from CLB for restructuring payment of interest and principal amount by delaying refunds by many years. This is mockery of justice and playing with other's money without their consent. Pl put on your thinking caps and suggest and find solutions to help people by forming a NGO to help. I am sure you can do this since you hold the sword of writing in your hands and have the requisite powers. Thanks.

u k saluja

1 year ago

I would like to reiterate that there is no point publishing grievances of people suffering due to non receipt of refund of their money given to corporates as FDs etc. when a solution cannot be found. Co.managements have found ways to dodge small investors by not complying with orders of CLB/MCA, go for winding up of companies, reference to liquidator and other channels which cannot resolve issues of refund of locked money for upteem numbers of years. Sending representations to politicians also do not bring any response. What a mockery really. There is no one to help poor/small/sick/senior citizens who invest their money for security and for their needs at the time of emergency or other medical requirements. Recent cases of Micro Technologies India Ltd. and Avon Corpn.Ltd., Mumbai both have gone into liquidation and cases with liquidator, Mumbai. Claims not acknowledged for over a year now. Article published by Moneylife did not bring in any result. Total waste of efforts and people suffering.

REPLY

Srikanth Shankar Matrubai

In Reply to u k saluja 1 year ago

100% agree with you.
I have filed Criminal Case against 2 companies namely Neesa Leisure and Jindal Cotex.
Lets wait for the result

Shankar Iyer

1 year ago

I suppose Moneylife must get this issue researched further and put up that for information. Various actions like complaint to ROC, filing complaint before CLB is put up here; ML should also discuss winding up petition criminal action, class suits, etc. ML should also examine whether two suits can go together viz, winding up and CLB. Also, ML should get into the transparency required by government in putting up data in the public domain for facilitating a class suit. Also, the implications of extensions under CA 2013 need to be discussed from the standpoint whether a time cap is essential. Moreover, other grievance redressal fora, including that of the PM's portal should also br put up. All this would help.

REPLY

MDT

In Reply to Shankar Iyer 1 year ago

Thanks for your comment.
As you are aware we are a tiny publications without any resources. All things you had mentioned require funding and we doubt if people who had already lost money would be willing to spare some more money either for a class action suit or taking things further up as individual or together with other like minded investors. And it is these individuals that need to join hands and initiate action to get back their hard earned money. No one is stopping them from raising their grievances in alternate forums, filing class action suits or the PMO website you had mentioned. As a tiny organisation with no resources, we can do this much only.

u k saluja

1 year ago

Would you kindly write another article on FD scam of Micro Technologies India Ltd. and Avon Corpn.Ltd., Mumbai wherein no. of orders were issued by the office of the CLB, Mumbai which were not complied with by the respective companies. Thereafter both the companies were referred to the liquidator because of winding up orders issued by the Hon'ble High Court of Mumbai. Claims submitted to liquidator for over one year not yet acknowledged what to settlement of the same. Kindly file a RTI to the liquidator if possible through your legal cell and help the poor/small investors. Thanks.

JGC

1 year ago

BILCARE LIMITED a Pune based pharma company has also joined in not paying to senior citizen FD holders and others on due date.

Co. had got Company Law Board, Mumbai's order in 2013 to extend the FD's maturity date for 2 years without the knowledge and information to the FD holders(as per old companies act).

NOW these FD's are ready for repayment as per extended terms of 2 years.

Again co. has played dirty tricks/tactics and got the Company Law Board, Delhi's order to extend ALREADY extended FD's maturity date for another 18 Months. Said Order indicates that office had heard only co. advocate and NOT to the FD holders. Many FD holders had opposed co's application in writing to CLB Mumbai which were not considered/Mentioned by CLB Delhi in passing the order.

Why CLB Delhi has to intervene in to the jurisdiction of the CLB Mumbai? The reason shown was that officer at CLB Mumbai was on leave. Why so hurry? Why all objections of FD holders received by CLB Mumbai through emails and RPAD's are not sent to CLB Delhi as part of case documents? Is there any govt. machinery to inquire it to?

CLB Delhi passed this order per New companies act 2013 passed by current central govt.

Did you smell something cooking under the nose of the government in Delhi? Is this govt. and it's machinery if for Investor or for defaulter company?

It seems company can try with other CLB's of the Nation for extension of FD's in series and make F.D Investors to get back their hard earned money for YEARS.

Manharlal Patel

1 year ago

I have also same problem for Birla Power Solutions Limited as per company goes under liquidation and i am not able able to enter complaint to MCA(ministry of company affairs)as company under liquidation. I am not understanding that group like Birla also do like this, now question is that in which company we believe. so i here by request you all please do not keep FD looking to group also

REPLY

Mamta Anand

In Reply to Manharlal Patel 1 year ago

Hi Manharlal,

What is the way forward to receive the money from Birla slokh

Manharlal Patel

In Reply to Mamta Anand 1 year ago

Hi Mamta,

i am not understanding what you are asking, as i am not receiving matured amount from Birla Cotsyn limited and Birla Poer solution limited. please elaborate

MR V RAMANI

In Reply to Mamta Anand 1 year ago

As suggested earlier, I strongly feel we should form a group,viz. "Birla Group Depositors Association" appoint a Lawyer and jointly seek legal remedial measures, which i feel would have a greater impact, than chasing Cos. individually, and share the costs. I still recall, way back in 1980's one Lady Adv Mrs. Baam (if i remember the name right) had fought one case against M/s Devakaran Nanjee & Sons, Mumbai and helped despositors get their money. I am sure Mrs. Sucheta Dalal and her team can help us get a suitable Lawyer who can handle this case and tell us the costs involved, which can be shared by all of us.

Manharlal Patel

In Reply to MR V RAMANI 1 year ago

I am agree with your suggestion and i am ready to join if we can form a group and hire lawyer

u k saluja

1 year ago

It would be appreciated if the Editor-in-Chief of moneylife could write another article on the fd scam of Micro Technologies India Limited, Mumbai. The company has gone into liquidation for over one year now and matured fd holders having filed their claims to liquidator, Mumbai are still suffering without even an acknowledgement for the claims submitted to the liquidator through FD promoter viz., Bajaj Capital Limited, New Delhi. Earlier article was of immense importance and very timely, few months back, and had brought to the notice of authorities the malafide intentions of the management by not honouring their commitments to the fd holders despite issuance of many orders by the Company Law Board, Mumbai. An early article on the subject would be of great benefit to the sufferers. Thanks.

u k saluja

1 year ago

Re: Micro Technologies India Ltd. and Avon Corpn.Ltd., Mumbai. Complaints made to CLB/MCA/liquidator, Mumbai for the last almost one year for payment against matured FDs. No acknowledgement. Companies gone into liquidation after collecting crores from small investors. Orders issued by CLB not complied with by companies' managements. Liquidator not notifying action taken on claims submitted to him. Complaining to Moneylife for almost one year. Article written by Ms Dalal on Microtech. No follow-up action taken by anyone. Senior citizens and others suffering for more than a year.Neither interest nor principal amounts paid. Bajaj Capital Limited who were collecting deposits also not of any help. They do not even reply to the emails sent to them. MCA/CLB must intervene and help sufferers. Thanks.

Manharlal Patel

1 year ago

please note that i have entered my complaint for non receipt of maturity amount to MCA in december but there is no action against company by MCA also and i have seen on website of MCA it shows my compalaint is closed without any compansation. i am not understanding that now what to do to get my money from Unitech limited, Tricom India ltd., and Birla Citsyn ltd. so it is my request you all please do not keep FD in these company

Manharlal patel

u k saluja

2 years ago

There is no one to help poor FD holders of Micro Technologies India Ltd. and AVON Corpn.Ltd., Mumbai. Bajaj capital ltd. were instrumental in collecting deposits when people were filing claims to CLB and other authorities in Mumbai. CLB/Liquidator of no help. Claims filed many months ago. No progress. Not even an acknowledgement. Lost hope of getting any help from regulators and others. Companies' managements have washed their hands off after winding up ordered by the Hon'ble high court of mumbai. saluja, new delhi.

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