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Price of standard gold declined by Rs280 to Rs18,270 per 10gm as stockists reduced their holdings in tandem with a weakening global trend. Falling retail demand added to the price pressure
Gold prices fell by Rs 280 to Rs 18,270 per 10gm in the bullion market on Friday due to widespread selling by stockists in the face of weakening global trend.
Selling pressure gathered momentum as gold fell to $1,205.6 per ounce in London from a record high of $1,226.
Marketmen said prices fell as stockists reduced their holdings in tandem with a weakening global trend.
A drop in demand from retailers at existing higher levels added to the pressure on prices.
Standard gold and ornaments, which were setting fresh price records almost every day, plunged by Rs280 each to Rs18,270 and Rs18,120 per 10gm, respectively, while the price of the 8gm gold sovereign declined by Rs50 to Rs14,300.
Silver too tumbled by Rs900 to Rs29,000 per kg. Silver ready fell by Rs900 to Rs29,000 per kg while the price for weekly-based delivery increased by Rs50 to Rs29,500 per kg on scattered buying by speculators.
Silver coins remained steady at Rs34,600 for buying and Rs34,700 for selling of 100 pieces.
— Yogesh Sapkale
The UP government would now have to invite objections from farmers, who have the option of either returning the money to reclaim their land or forfeiting any claim
The Allahabad High Court on Friday quashed the Uttar Pradesh government\'s notification for use of emergency powers to acquire land for Reliance Natural Resources Ltd’s (RNRL) Dadri power project, side-stepping a provision for inviting objections from landowners, reports PTI.
The state government would now have to invite objections from farmers, who have the option of either returning the money to reclaim the land or forfeiting any claim.
However, the agitating farmers and RNRL gave different interpretations of the order. Anil Ambani group official JP Chalasani contended that land acquisition for the Dadri project has not been set aside as claimed by the other side.
Passing the order, a division bench comprising Justice Ashok Bhusan and Justice Sudhir Aggrawala said that all "subsequent proceedings consequent to the notification of 11 February 2004, including the notification under Section 6 of 25 June 2004 are quashed".
"The Collector (of Gautam Buddh Nagar, where the Dadri village is situated) shall issue notice in newspapers having wide circulation by not giving less than 30 days\' period for filing of objections", the court said.
The court held that the notification dated 11 February 2004 is "partly quashed" since it invoked emergency powers under Section 17(1) and 17(4) of the Land Acquisition Act meant for public purpose.
Besides, the state, which acquired over 2,000 acres of land, had bypassed Section 5A, which provides for inviting objections from the landowners.
"The petitioners (landowners) are liable to refund the compensation received from the respondents", the court said.
"However, it will be open to those who have no objection to the acquisition to indicate so, and in that event they may seek exemption from the Collector from refunding the compensation", the court added.
The court also made it clear that the Collector shall take into account only objections of those who have returned the money.
The 7,800MW project, land for which was acquired by the Mulayam Singh Yadav government in 2004, has become a bone of contention between the Ambani brothers, Mukesh and Anil, who are involved in a bitter legal battle in the Supreme Court over supply of natural gas.
The Anil Ambani group has charged Reliance Industries Ltd (RIL) of reneging on its commitment to supply gas, which it claimed had rendered the project non-bankable.
RIL, on the other hand, had argued in the apex court that the project was not on the ground and hence, the gas could not be supplied.
Osian claims this part payment is about 90% of the invested capital. Investors, however, are still in confusion over the final NAV
The long wait for some Osian Art Fund investors seems to have finally ended. However, investors have received only part payment of the redemption amount, while they continue to be anxious about the net asset value (NAV) returns and full payment.
In November 2009, Neville Tuli, founder-chairman and chief executive of Osain, had told Moneylife that he had informed all unit-holders of Osian Art Fund that the NAV of the scheme would be Rs112.29, including dividend payout. This message, Mr Tuli told Moneylife, was sent out to investors on 8 October 2009.
However, investors have a different story to tell.
“I have received 75% part payment of the redemption amount (considering an NAV of Rs112). The official mail stated ‘here is 90% of the investment, which is a part payment towards full payment’,” said Deepak Daftari, one of the investors in the Fund.
However, Osian officials now claim that they have been shelling out a repayment of 90% of investor capital, and not part payment of the redemption amount.
In an email to Moneylife, Mr Tuli said, “90% of all investors’ capital is being returned in the first phase, and once the final audited NAV is completed, the remaining amount will be sent.”
While Mr Daftari has received 75% of the amount invested, another investor has received only 73% of the invested amount. “I had invested Rs10 lakh in the Fund. I have received the part payment of Rs8,50,000, while the total amount to be paid is Rs11,20,000 keeping in mind an NAV of Rs112,” the investor said, preferring anonymity .
When asked about the reason for part payments, Mr Tuli said, “The difficulty in selling all the inventories and in realising the dues during the downturn has been the reason for this situation, along with the overriding priority of protecting our unit-holders’ capital.”
However, what remains a larger concern is the NAV which is being stated at present. While the NAV for the month of July was stated to be around Rs112, investors have now been informed that the NAV to be considered would be lower at Rs110.
“We were told that the NAV for the month of July was Rs112, which was declared in October this year. The NAV has gone down much lower at Rs110. I don’t understand how the NAV can go down, once the fund was closed in July,” added Mr Daftari.
Mr Tuli replied, “The NAV for final payment was always (supposed) to be the final audited NAV as per the redemption guidelines.”
However, when Moneylife had questioned Osian in October 2009 on the status of the final NAV, we were told, “The Fund matured in August 2009. The Osian Art Fund will return nearly Rs115 (as NAV). NAV has ranged from Rs145 to Rs115, highest in 2007, lowest in 2009.”
The thirty-six month close-ended scheme announced in July 2006 made a quiet exit with returns of 5% per annum. However, investors believe that the returns they would receive could be lower at 3% to 4% per annum. As of July 2006, the total corpus held by the fund was Rs102.40 crore and it had 656 unit holders spread across 39 cities in India.
As per the Osian Art Fund prospectus, the fund distribution had to commence from 10 July 2009. With a stipulated period of 120 days, the redemption of the fund had to be completed by 10 November 2009. However, the company now claims redemption before 10 December 2010 was always part of the redemption guidelines.
— Amritha Pillay