G Janardhan Reddy is Absconding. Why No Action Was Taken Against the Karnataka mining baron During Demonetisation, Asks EAS Sarma
Amidst reports of Karnataka mining baron and former minister G Janardhan Reddy absconding and police issuing a look out notice against the Bharatiya Janata Party (BJP) leader, EAS Sarma, former secretary of the Government of India, has reminded the Prime Minister about his 2016 request for action. 
 
Mr Sarma says, soon after demonetisation, he wrote two letters to PM Narendra Modi requesting investigation in the lavish marriage arrangements made by Mr Janardhan Reddy for his daughter's marriage. 
 
"Mr Janardhan Reddy, as reported by the press at this time, is absconding and the police are trying to apprehend him. Had the Central government intervened decisively in 2016 on my letters, Mr Janardan Reddy would have been brought to book and the subsequent acts of malfeasance could have been prevented," Mr Sarma says in a letter sent to the prime minister. 
 
Mr Sarma says, Mr Janardan Reddy was reported to have splurged money all around, in open defiance of demonetisation. "My letter dated 6 December 2016 referred to a suicide note left by a driver on how Mr Janardan Reddy and his associates had exchanged Rs100 crore of illegal currency notes in a bank. I therefore requested you to ask the finance ministry to get this investigated urgently to ascertain the illegalities committed by Mr Janardan Reddy. In particular, I requested the central government to deploy Enforcement Directorate (ED) and the other investigating agencies to investigate this from the point of view of laundering of money."
 
"To the best of my knowledge, no tangible steps were taken to investigate the case of Mr Janardan Reddy, perhaps for the reason that he wielded influence over the government. Inaction on the part of the Centre in that case sent a negative message on your campaign against corruption and black money," he added.
 
According to reports, Bengaluru police are probing involvement of Mr Janardhan Reddy in a Ponzi, or a chain money scheme, where his personal assistant had allegedly received 57kgs of gold. 
 
During 2016-17, one company under the name of Ambidant was set up and was promised assured returns of 30-40% per month. When it failed to return the money there were cases filed against the company. In January 2017, the ED raided on the company.
 
In his statement before the central crime branch of Bengaluru police, Fareed, the owner of Ambidant company claimed that after the raids by ED, they approached Mr Ali Khan, a close aide of Mr Janardhan Reddy to help them close the case. Quoting sources, a report from MyNation says, “Janardhan Reddy reportedly promised to help, but demanded Rs 21 crore. Fareed has also told CCB that Janardhan Reddy and ED officials met at Taj Westend in Bengaluru and closed the deal. Mr Janardhan Reddy's Enable India Company allegedly received Gold Bars from Ambidant.” 
 
T Suneel Kumar, commissioner of police at Bengaluru, told reporters, "A transaction of Rs18 crore was done. It was later found that the Ambidant Company had transferred the money to Ramesh Kothari of Ambika Jewellers. When Mr Kothari was questioned, he revealed that he had given 57 kg of gold to Ramesh, a jeweller from Bellary. When Ramesh was questioned, he informed that the gold was given to Mr Janardhan Reddy's PA Mr Khan. Mr Reddy is untraceable now and there is no arrest warrant against him. Mr Reddy will be summoned for questioning as we need to recover 57 kgs of gold." 
 
Clearly, Mr Sarma says, inaction on the part of the central investigating agencies against Mr Janardana Reddy in 2016 sent a clear message to scamsters that they could lean on him for assistance, whenever needed.
 
Talking about Mr Janardhan Reddy, he says, "I am sure that the mining baron of Bellary, who was already involved in several cases of illegal mining, had also helped your party and the others in the Karnataka elections recently," adding, "Today, I find the same gentleman reported to be involved in yet another money laundering scam and the Karnataka police are trying to locate him. He seems to have been closely associated with a financial services firm, which defrauded over 15,000 people to the tune of over Rs600 crore through Ponzi schemes. The owner of that firm seemed to have sought Mr Janardana Reddy's intervention in "settling" the cases taken up by the ED!" 
 
Mr Sarma, the former Union secretary also recalled that he had drawn the attention of the prime minister on what action can be taken during the demonetisation days. In his letter on 16 November 2016, Mr Sarma had stated, "You cannot run with the hare and hunt with the hounds at the same time. If you wish to flush out black money in real earnest, Mr Prime Minister, you have to flush it out from the bigger sharks nearer home, not the petty cash hoarders. If you wish to tell the nation that you mean business, the people of this country wish to see some big fish apprehended, their benami properties confiscated and an example is set to deter the others from violating the law of the land." 
 
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COMMENTS

TIHARwale

4 days ago

56 is a fraudster. recall how he and his jodidaar exploited the slaves in TN , recall how a cooperative Bank with jodidaar in powerful position over Rs 750 crores of old notes were deposited in this particular cooperative bank in 5 five days which is next impossioble to count. 56 is the ountain head of the corupt

umesh

5 days ago

how do I send a link of this article to someone?

BV SUDHANVA

1 week ago

na khaavoon ga na khane doonga?

Ashwin Mehta Gets 5-year Rigorous Imprisonment in ONGC fraud, a Week after Acquittal in another case
Ashwin Mehta, brother of 'big bull' Harshad Mehta has been sentenced five years of rigorous imprisonment and a fine of Rs5 lakh in a case related with diversion of funds from state-run ONGC Ltd. VN Deosthali, who was assistant manager at UCO Bank when the fraud took place, was sentenced to 16 years of rigorous imprisonment and a fine of Rs4 lakh. Since the sentence is over three years, he has been sent to Tihar jail on 2nd November, after the judgement was pronounced. 
 
This is nearly 26 years after the securities scam of 1992. In a strange mix of fortunes, Ashwin Mehta and eight officers of State Bank of India (SBI) were acquitted in another case in Mumbai just over a week ago. Funnily, the Times of India Mumbai front-paged the acquittal of Ashwin Mehta today, when, in fact, he has been in Tihar jail since 2nd November.  
 
In the ONGC matter, that led to his conviction, Justice Anju Bajaj Chandana from the Special Court of Central Bureau of Investigation (CBI), Delhi said, "The defence version put forth by Ashwin Mehta has no merit or substance. According to him, it was obligatory for ONGC to engage the services of registered broker and for this purpose even ONGC entered into contracts with Harshad Mehta and agreements were reduced into writing. However, no such agreement is produced in evidence and even witnesses of ONGC have not been questioned on this aspect. It is clear that Ashwin Mehta has no reasonable defence in his favour. To conclude, Ashwin Mehta has been actively involved through conspiracy and actually participated in the crime with full intention and knowledge of large scale diversion of ONGC funds.”
 
The CBI charge sheet filed during July 1989 and March 1991 says, MC Nawlakha, former member for finance at ONGC entered into criminal conspiracy with Harshad Mehta and Mr Deosthali to obtain undue pecuniary advantage for themselves by illegally diverting funds of ONGC. 
 
According to CBI, surplus funds of ONGC amounting to Rs730 crore were made available to Harshad Mehta by crediting his current account in UCO Bank at Mumbai. He utilised the funds in money market and thereby earned huge profits from the same. VK Joshi and RK Singhla, who were working as deputy directors for finance and accounts at ONGC in Delhi and Mumbai were also involved in the transactions. 
 
Ashwin Mehta, who was share and stockbroker was authorised to operate the UCO Bank account of Harshad Mehta during that time. 
 
Mr Nawlakha with the help from Mr Joshi diverted funds of ONGC through transfer advices, which were used to issue banker's cheques from State Bank of India (SBI) in favour of UCO Bank. The Mehra brothers handed over the banker's cheques to Mr Deosthali at UCO Bank, who credited the amount in Harshad Mehta's account. 
 
"Accused Mr Deosthali, knowing fully well that said banker's cheques were in favour of UCO Bank and on the respective dates no transactions of securities were carried out, issued bank receipts (BRs) against the banker's cheques stating that funds have been received by UCO Bank and invested in the purchase of various securities whereas the funds were directly credited by him to the current account of Harshad Mehta, who utilised the said funds for his own benefit," the CBI had said.
 
Mr Nawlakha also received shares of Apollo Tyres Ltd and Bharti Telecom Ltd, in the names of his family members without any authorisation.
 
Harshad Mehta expired on 31 December 2001 and Mr Nawlakha died on 30 October 2012, and proceedings against them were abated. 
 
In the judgement, Justice Bajaj Chandana said, Mr Nawlakha abused his official position and approved proposals for investments against rules and also arranged delivery of bankers’ cheques to representatives of Harshad Mehta, and thus was guilty for large scale misappropriation of ONGC fund.
 
“Mr Deosthali wrongfully passed credit vouchers for crediting the proceeds of the banker cheques to the account of Harshad Mehta and in this way, diverted ONGC funds in favour of private broker and unauthorisedly issued bank receipts. Ashwin Mehta assisted his brother Harshad by signing the important documents about delivery of securities and maturity amount to ONGC and also separately provided illegal benefits to Mr Nawlakha and Mr Deosthali, through their family members,” the court said.
 
“Corruption is a serious menace, anti-social and anti-development. It poses threat to the stability of the society. No form of corruption is acceptable. The economic offences involving huge loss of public funds are required to be viewed seriously as it affects the economy of the country as a whole and adversely affects the financial health of the country. The offences are serious when it involves public money and more serious when they are committed in respect to valuable security through banking system,” Justice Bajaj Chandana concluded.
 
Coming to the SBI case, where Ashwin Mehta was acquitted last week, Justice Dr Shalini Phansalkar-Joshi of the CBI’s Special Court in Mumbai, said, "The prosecution has however not made any attempt to prove the sanction by examining the subordinate officer or the staff, who has seen the sanctioning authority signing the sanction order or who is acquainted with the signature of the sanctioning authority. Merely, filing the order purported to be the sanction order alleged to have been signed by the competent authority, does not discharge the burden on the Prosecution of proving the sanction, according to law. No explanation is offered at all by the Prosecution for non-examining any of the witness on this aspect, at-least to state that the sanctioning authority was the competent authority to grant such sanction. The Prosecution has not even proved this sanction through the evidence of Investigating Officer, who had obtained the said sanction. 
 
"Therefore, the fact remains that there is no sanction proved on record for the prosecution of the R Sitaraman and in the absence thereof, the entire trial conducted against him becomes vitiated as he did not get any opportunity to challenge the said sanction for non-application of mind, absence of competency in the sanctioning authority to accord such sanction," the court said.
 

 

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ramchandran vishwanathan

1 week ago

25 years on ... what a pathetic state of justice system . I wonder what are the second generation of mehta's upto after all this ordeal

Cooperative Housing Society (CHS): Maharashtra GR Allows Small Societies to Conduct Committee Election Internally
The Maharashtra government has issued a government resolution (GR) to amend Maharashtra Cooperative Societies Act of 1960. One of the main amendments in the GR allows small cooperative housing societies (CHS) to conduct internal election for managing committee. 
 
"In section 73CB of the MCS Act, 1960 to sub-section (11), after the existing proviso, the following proviso shall be inserted, namely :— 'Provided further that, in case of housing society having less than or up to 200 Members, the elections of the Committee shall be conducted by the said housing society in the manner as may be prescribed,” the amendment says.
 
Among all cooperative societies in Maharashtra, cooperative housing societies are largest in number or constitute about 50% of the total societies. While affairs of the co-operative housing societies are distinct and peculiar, they were regulated in the same manner as per the general provisions of the said Act, as applicable for all other co-operative societies, like co-operative sugar factories, district central co-operative banks, and co-operative spinning mills.
 
This has created problems and several provisions in the Act were inadequate to address specific grievances of housing societies in the state. Many cooperative housing societies and CHS federations have raised the issue with the state government, which had promised to look into these issues. 
 
The GR also puts restriction on transfer of share or interest of a Member on a CHS. Accordingly, the Society cannot transfer share or interest of a member or the occupancy right, except tranfer of his heir or nominee, unless dues of the CHS are paid and the transferee applies and become member of the housing society. In this, occupancy rights do not include right of a tenant or licensee on leave and license basis. 
 
Here are salient features of New Housing Chapter in MCS Act 1960...
 
1. Elections to the housing societies for less than 200 members to be conducted internally by the society.
2. Concept of new members like joint and provisional members introduced
3. Concept of Cooperative Housing Association introduced to facilitate the formation of association of less than five societies for conveyance or Deemed conveyance matters.
4. Penalty of Rs25,000 on management committee introduced for not allowing inspections of documents under section 32.
5. Scope of Section 32 in inspection of documents widened.
6. Role of Housing federations widened.
7. Hindu undivided family (HUF) is specially included as person in the definition, which was not included earlier.
8. Defaulter is specifically defined now in the Act itself.
9. Concept of ‘Provisional Member’ introduced.
 
Here is the GR issued by Maharashtra Government on 30 October 2018…
 
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COMMENTS

Mitesh Shah

2 weeks ago

Internal elections are done only to their advantage & not protecting the rights of owners. For years such committee does harassment by depriving the minority owners with their powers by using the legal system & judiciary to twist the laws in their favour which is unfair by any means. I think a thorough survey has to be done by the Government on all the societies & also inspect all the cases against such errant Committee members which has neglected the rights of the innocent owners of the property instead of penalizing the builder or taking any action to protect the legal owner. Co-operative societies are just for the name sake but not co-operative to common man suffering from such legal system which only has long, long harassment in store for the entire family.

Mitesh Shah

2 weeks ago

Is there not a need now to make the society also a defaulter for disconnection of Water or any basic amenties which may or may not be outsourced & not provided by BMC ? How can any citizen survive without water for 3 decades on fault of legal system which punishes only the minority of members but does not recognize the wrong doers ? Government needs to do a deep introspection of the age old laws which does not protect the minority owners.

REPLY

Jithendra Patel

In Reply to Mitesh Shah 2 weeks ago

How do you expect to have water supply when you default payment of maintenance dues for a longer period.

Mitesh Shah

2 weeks ago

1. I think the housing societys sud elect the committee in front of co-operative courts which can hold them liable for mis-conduct on any member which deprives them of any legal rights of ownership attached at the time of agreement between the builder & the owner. It is seen that many society committee acts as owner on the rights of the actual owner by way of depriving the basic amenities on non payment of maintenance which actually is the liability of the builder for not doing the conveyance & getting the OC ? Should not the legal rights of the owner be compromised just because the maintenance dues are not paid & take on the liability of the builder on the resident himself / herself. Are there any laws to make the builder & managing committee & even the Govt accountable instead of just punishing the flat owners ?

REPLY

Jithendra Patel

In Reply to Mitesh Shah 2 weeks ago

If you are a member of a housing society, you too can contest for election. No one can stop you from doing that. Why do you expect small societies to conduct election in presence of cooperative courts?

Mitesh Shah

2 weeks ago

Can the managing committee members dis-connect the water connection & also charge 21% simple interest p.a. on non-payment of maintenance dues if the builder has not done conveyance & not got OC ? Should a common man suffer from basic amenities even if the said water is out sourced & not given by BMC ? Does the law allow the managing committee to act against legal owner & mistakes of Builder ? what is the stand of Govt to save the owners from illegal acts of Builders & managing committee who act as land owners which only steals away the basic rights of the owner under MOFA & or RERA ? Should the govt not appoint Administrators & guard the rights of innocent citizens who are victims of the system & gifted with injustice and long endless legal battle against the majority of partners in crime ? What is the remedy for a minority resident ? When will the atrocities on common man be addressed by Govt to protect the rights of residents suffering since last 3 decades & not give undue powers to any managing committee members to distort basic amenities under any circumstances ?

REPLY

Jithendra Patel

In Reply to Mitesh Shah 2 weeks ago

Definetly

Mitesh Shah

2 weeks ago

What sud a member do if the Balance sheet figures do not match with the ledger of the same period & what if the managing committee gives only verbal confirmation of the same being rectifies in 2017-2018 ? Also what if the letters issued by the Society & Ledger of the same period are different ? they are charging 21 % p.a. Simple interest on outstanding dues ? Can the Minutes of the meeting be rectified if there is error found in the accounts as demanded by the society ?

REPLY

Jithendra Patel

In Reply to Mitesh Shah 2 weeks ago

Request the committee for whatever clarificstion you want in writing. If the committee does not respond, then only approach the office of Dy.Registrar. And most important, you should be the member of the Society.

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