DHFL promoters Wadhawan brothers land in Chennai jail for fraud
The Economic Offence Wing (EOW) of Tamil Nadu Police has requested investors cheated by Dewan Housing Finance Corporation Ltd (DHFL) to lodge complaints with it.
 
The EOW have arrested two promoters of DHFL -- Kapil Rajesh Wadhawan and Dheeraj Rajesh Wadhawan -- and them lodged in a jail here for cheating the investors to the tune of Rs 218 crore, an official said.
 
According to the EOW, a case was registered against DHFL, Wadhawan brothers and others on the direction of Madras High Court in August 2020.
 
The charge against DHFL, its two Wadhawan brothers and others was that they cheated investors of Rs 218 crore by non-repayment of deposits.
 
Police said a complaint was lodged by John Deepak authorised representative of 63 Moons Technologies Ltd -- formerly known as Financial Technologies Group -- that had invested about Rs 200 crore in DHFL's non-convertible debentures.
 
The police said the two accused were produced before a Special Court here for judicial remand on Wednesday. They have been sent to Puzhal Prison here for 15 days.
 
The two were arrested in Mumbai on Tuesday and were brought here on a transit warrant.
 
The Wadhawan brothers were earlier arrested by the Enforcement Directorate and Central Bureau of Investigation (CBI).
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    MAHESHGURDASANI

    2 months ago

    HOW TO LODGE COMPLAINT, ONLINE ?

    rs235m

    2 months ago

    Also arrest all bank officials who gave loans to these 2 cheats for the shell companies they floated.
    Of course a part of the loan amount has gone to political party.

    valentine.barboza

    2 months ago

    Excellent.. keep them in forever.. sell all that they own and return investors money..

    Health Ministry guidelines: No festive events in containment zones
    The Health Ministry on Tuesday issued the standard operating procedures (SOP) on preventive measures to contain the spread of Coronavirus during ensuing festivities and urged people in containment zones, and vulnerable populations to celebrate festivals at their homes.
     
    "Festive events shall be permitted only outside the Containment Zones. Organisers, staff and visitors from Containment Zones shall not be permitted. People residing inside Containment Zones may be encouraged to observe all festivals inside their homes and not move out," the ministry added.
     
    It said that the festivals, fairs, rallies, exhibitions, cultural functions, processions and concerts associated with the festivities are mass events and advised the administrative requirement such as identification of spatial boundaries and preparation of a detailed site plan in compliance with thermal screening, physical distancing, sanitisation etc.
     
    "In case of events that run for days or weeks, the crowd density doesn't remain the same throughout and usually peaks around certain hours of the day and some previously known auspicious days. Planning for the event should specifically factor this so that crowds are regulated and managed to ensure physical distance and frequent sanitisation," the guidelines added.
     
    In case of rallies and immersion processions, the number of people should not exceed the prescribed limit and proper physical distancing and wearing of masks must be ensured. In any case, the number of such rallies and the distance covered by them may be kept within manageable limits.
     
    The Health Ministry said that the events such as rallies, and processions spread over long distances would require support of ambulance services. Events planned to last for many days or weeks such as exhibitions, fairs, puja pandals, Ramlila pandals or concerts and plays should have adequate measures to ensure a cap on physical numbers.
     
    "Staggered timings and restricted entry may be considered. Volunteers should be appropriately stationed to ensure thermal scanning, physical distancing and wearing of masks. The guidelines issued for theatre and cinema artists will apply to stage performers. Adequate supplies of sanitisers, thermal guns and physical distancing floor markings to be ensured," the Centre added.
     
    Close circuit cameras would be considered to monitor compliance of physical distance norms, wearing of masks at each venue. "In case of rallies and processions, route planning, identification of immersion sites, ensuring cap on numbers, physical distancing etc. must be planned beforehand and measures for enforcement outlined."
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Temptations of Narcotics Legalisation
    One of the major fallouts of the Sushant Singh Rajput (SSR) case is the sudden interest in legalising/decriminalising consumption of a small list of psychotropic substances in the country.
     
    The timing of the debate may have had Bollywood origins, but the economics of the debate has a long history in India.  
     
    Narcotics and psychotropic substances include a long list of both naturally occurring and synthetic compounds. The cannabinoids and opioids are naturally occurring and, over the years, through chemical treatment, many new compounds have been created from plants such as heroin.
     
    The medicinal use of the cannabinoids and opioids has long been known in Asia. If one goes by the (Eurocentric) history of opium on the Central Narcotics Bureaus website, the properties of the plant have been well documented since 1000 CE. Similarly medicinal use of cannabinoids has been known since 1000 BCE in India. Further, the practice of using seeds and oil from these plants as condiments and spices continues to this day.  
     
    The available recorded history of these plants does not indicate a large-scale recreational use of these plants in Asia. The Arthasastra talks about taxing/licensing alcohol but not psychotropic substances. In fact, until 1750, these plants have never been used as source of revenue for the State by promoting recreational use. 
     
    However, this changed with the arrival of the British in India. Following the 1606 Queen Elizabeth I Charter to purchase the finest Indian opium and transport it back to England, the subsequent British expansion in India was closely tied to areas that produced opium. 
     
    The British East India Company assumed control of Bengal and Bihar, opium-growing districts of India in 1750. It zealously pursued a revenue maximisation policy through a monopoly by promoting recreational use of opioids domestically and through exports in China. With the annexation of Sindh in 1840 all possible access to the sea except through company’s ports was cut-off for the so-called rival Malwa opium. 
     
    Forced poppy cultivation ultimately became a factor in triggering the First War of Independence in 1857. This led to the passage of the Opium Act 1857 to regulate the cultivation of opium poppy and manufacture of opium. This was followed by the Indian Opium Act of 1878 to control smuggling, the private possession and trade in opium thereby securing government monopoly. 
     
    At the height of its opium trade, the British India government derived a quarter of its total revenue from this single commodity. Thus, when the United States took notice of large-scale opium addiction in its colony Philippines in 1898 and decided to pursue a foreign policy to dismantle the Sino-Indian opium trade in 1900s, the British were quick to realise—loss of opium revenue implied liquidation of the empire.
     
    It would not be before 1917 that the Sino-Indian opium trade would be fully dismantled. With falling exports since 1907, a part of the revenue would be compensated by encouraging domestic consumption of opium through licensed shops. Gandhi's political agitation in opposition to the official distribution of drugs pressurised the colonial authorities to sign the Geneva Convention of 1925.The growing addiction and opposition from Indian leaders led to the passing of the Dangerous Drugs Act, 1930.
     
    The weight of domestic and international events in respect of controlling illicit trade and production in narcotic substances prior to independence would eventually devolve on the government of independent India. The Article 47 of the Constitution says—“the State shall endeavour to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health.” State governments in post-independence period would pursue divergent policies depending on its revenue dependency on intoxicating drinks and drugs. While most of the states adopted a tight regulation, the state of Gujarat went for complete prohibition of alcohol but not of drugs. 
     
    Post-independence dynamics of trade in drugs in South Asia was further complicated by geography. Independent India was now sandwiched between the Golden Crescent in the West and the Golden Triangle in the East, making India a transit point for the trade in contrabands. The situation would be further complicated by the 1980 Cold War geopolitics as the dividing line between trade in contraband and state objectives blurred. Thus, the period between 1947 and 1985 would see a resurgence in the outflow of narcotic substances from South Asia, including India. 
     
    Thus, under international pressure, the Indian Parliament enacted a comprehensive legislation on narcotics drugs & psychotropic substances, namely, the Narcotic Drugs & Psychotropic Substances Act, 1985, repealing the Opium Act 1857, Opium Act 1878 and Dangerous Drugs Act, 1930. 
     
    This murky, often glossed over, history of drug trade in South Asia offers many points to ponder upon. First, does any policy to legalise the consumption of substance XYZ (of course not out of kindness of heart) to raise revenues, imply legalising its production? If not, then it opens the doors for imports or for a thriving black market and eventual compromise of institutions. What signal does legalising consumption send?
     
    Second, a policy of revenue maximisation is a slippery slope; higher revenues come at cost of social depredation. Ignoring the dividing line between medicinal and recreational uses is not learning from history and following the imperialist policy all over again. The Assam Opium Enquiry Committee, an informal group set up by the Congress in 1925, concluded that 'when public opinion is awake and active', then the solution to the drugs problem becomes easier.
     
    The 2019 All India Institute of Medical Sciences (AIIMS) survey on substance dependency estimates that more than 5.7 crore people are affected by harmful or dependent alcohol use. About 72 lakh individuals need help for their cannabis use problems. An estimated 60 lakh people suffer from opioid use disorders. Will these numbers remain static? From where will resources for rehabilitation be raised—by legalising the very same product!
     
    Third, the objective of controlling the drug problem is intrinsically linked to the ability of states to garner sufficient revenues. The present federal structure still carries the remnants of the colonial policy of using intoxicants as a source of revenue at state level. The divergent practices adopted by states just after independence only proves this point. Intoxicants have been kept outside the goods and services tax (GST) as there is reluctance to part with a highly price inelastic tax base. Thus in a sense, anti-narcotics objectives and cooperative federalism are two sides of the same coin in the Indian context. If the GST compensation issue persists for too long, the clamour to legalise will only grow further. 
     
    (The author is an economist in the banking system. The views are personal) 
     
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