Mangelal Sharma gets his Rs7 lakh back—another Moneylife victory

A strong campaign by Moneylife through its website and its social media properties gets quick justice for a 79-year old man with an ailing wife. IndusInd Bank officials had deceitfully persuaded him break his fixed deposit with the bank and invest in a wrong product
 

Yesterday, there was another knock on 79-year old Mangelal Sharma’s door. Once again, the visitors were IndusInd Bank officials from his branch. But this time, it was not to mis-sell. The bankers came—at 11.30 in the night—bearing a demand draft of Rs7 lakh covering the amount he was persuaded to withdraw from his fixed deposit and invest in DWS’s mutual fund scheme with a 5-year lock in period.
 

The bankers also came with a letter wanting Mr Sharma to transfer the mutual fund units to the bank. This time, he was careful to read the letter and after some modifications, signed a release “without prejudice”. However, as he says, with great relief, “I want to close this chapter and move on”. We agree.
 

The bank’s rare capitulation, despite Banking Ombudsman dismissive attitude, was the result of Moneylife’s aggressive stance on mis-selling of banks, specifically making a campaign of this utterly disgusting case of mis-selling. In a first reaction to our report (Read Mr Sharma’s story here: ), the bank invited Mr Sharma to visit the bank at 10 am on Wednesday. Mr Sharma, wearing his T-shirt saying, “BEWARE IndusInd Bank is a cheat. It has cheated me and may cheat you too” landed up at the Preet Vihar branch in Delhi with Veeresh Malik, activist and Moneylife’s consulting editor in Delhi to lend him support.
 

But the bank had no intention of giving in so easily. It initially refused to allow Mr Malik to be a part of the meeting, did not want the conversation recorded and would not part with Mr Sharma’s documents or give him a copy of the cheque he had signed.
 

Readers may recall that bank officials visited Mr Sharma at his residence to persuade him to invest in what they said was a Development of Wealth Scheme (DWS), a branded fixed deposit of the bank, carrying higher returns. He was even persuaded to break an existing fixed deposit to put together Rs7 lakh for the investment. It is only when he received his first statement that he realized that he has been made to buy the DWS Hybrid Fixed Term Fund Series 10 Growth, which is sold by Deutsche Asset Management India Pvt Ltd (DWS) and has a 5-year lock in.
 

“Why would a 79 year old man, with a wife who needs surgery and who is living on his savings, willfully invest in a risky mutual fund with a 5-year lock-in”, asks Mr Sharma. But shockingly, the Reserve Bank of India’s (RBI) Ombudsman did not ask this basic question, or give him benefit of doubt and dismissed his complaint. Mr Sharma then decided to resort to Gandhigiri. Moneylife, which has been writing about gross mis-selling by banks, decided to campaign for him.
 

Mr Sharma’s fault was that he trusted the bankers of IndusInd Bank and allowed them to fill in the details of the scheme instead of checking the documents himself. The fact is, most people do trust their bankers implicitly and this has been ruthlessly exploited by modern day banksters to con persons who are not financially savvy. Senior citizens and women have been big targets of such systematic mis-selling. While Mr Sharma’s story has a happy ending, the rampant mis-selling of financial products remains a serious issue and Moneylife Foundation (our not-for-profit entity) will continue to push the RBI to rein in banksters, who exploit the trust of customers and sell them dubious derivative products, insurance or induce them to invest in portfolio management schemes which trade in risky commodity products.

 

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COMMENTS

CA PRADEEP AGARWAL

5 years ago

EXPECT CHANGE ONLY IF A NEW GOVT. COMES AT CENTRE.

Michael Mason-Mahon

5 years ago

Open letter to the major shareholders and the Board of Directors of HSBC Holdings Plc


Should the major shareholders of HSBC Holdings Plc pick up the bill for restoring the reputation of the HSBC Group?

Why have the Major shareholders not forced any changes to the Board of Directors of HSBC Holdings Plc?

If the world is to believe the statements of Mr Flint, Chairman, Mr Gulliver, CEO, that they are truly sorry for the illegal and criminal behaviour of HSBC Group, let the Board of Directors show the world how really sorry the HSBC Group is.

Is the HSBC Group willing to make an act of Attrition for their illegal and criminal behaviour around the world?

Is the HSBC Group truly sorry and wanting to atone for their illegal and criminal behaviour around the world? Are they willing to pay the Price?

Is Mr Flint, Chairman, Mr Gulliver, CEO and the Board of Directors of HSBC Holdings Plc very serious about restoring the reputation of HSBC around the world?

A good start would be to show society that the HSBC Group is not only willing to atone for the past and that the HSBC Group is willing to be a great Corporate Citizen of the world.

The cost is to help the world, the hungry, the poor, the uneducated, the homeless and the sick children of the world.

The HSBC Group is willing to announce in the next 30 days that the HSBC Group will donate £3 billion to help the world and for the next ten years donate £5 hundred million every year. The £3 billion donation will be made within six months of the announcement.

Some ideas for HSBC Group.

India £ 762 Million, then for the next tens years £51 Million.

Africa £ 823 Million, then for the next tens years £56 Million.

South America £ 514 Million then for the next tens years £43 Million.

Middle East, Syria and the Lebanon 370 Million then for the next tens years £46 Million

China £ 236 Million, then for the next tens years £79 Million

The rest of the world £ 210 Million, then for the next tens years £205 Million.

Costs £ 20 Million per year.

Have the HSBC Group paid over $2 billion in fines and settlements in the USA in the last four months?

This may be too high a price for the HSBC Group to pay to restore their reputation?

By helping the world maybe, just maybe, the citizens of the world, may be able to start to forgive the shameful behaviour of the HSBC Group and the behaviour of Board of Directors of HSBC Holdings Plc that were Board members while this illegal and criminal behaviour was going on.

Concerned shareholder

Regards
Michael Mason-Mahon
Mobile: 0044 7834763544
Mobile: 0044 7448770801
E-mail: [email protected]

"First they ignore you, then they ridicule you, then they fight you, and then you win."

Michael Mason-Mahon

5 years ago

Open letter to the major shareholders and the Board of Directors of HSBC Holdings Plc


Should the major shareholders of HSBC Holdings Plc pick up the bill for restoring the reputation of the HSBC Group?

Why have the Major shareholders not forced any changes to the Board of Directors of HSBC Holdings Plc?

If the world is to believe the statements of Mr Flint, Chairman, Mr Gulliver, CEO, that they are truly sorry for the illegal and criminal behaviour of HSBC Group, let the Board of Directors show the world how really sorry the HSBC Group is.

Is the HSBC Group willing to make an act of Attrition for their illegal and criminal behaviour around the world?

Is the HSBC Group truly sorry and wanting to atone for their illegal and criminal behaviour around the world? Are they willing to pay the Price?

Is Mr Flint, Chairman, Mr Gulliver, CEO and the Board of Directors of HSBC Holdings Plc very serious about restoring the reputation of HSBC around the world?

A good start would be to show society that the HSBC Group is not only willing to atone for the past and that the HSBC Group is willing to be a great Corporate Citizen of the world.

The cost is to help the world, the hungry, the poor, the uneducated, the homeless and the sick children of the world.

The HSBC Group is willing to announce in the next 30 days that the HSBC Group will donate £3 billion to help the world and for the next ten years donate £5 hundred million every year. The £3 billion donation will be made within six months of the announcement.

Some ideas for HSBC Group.

India £ 762 Million, then for the next tens years £51 Million.

Africa £ 823 Million, then for the next tens years £56 Million.

South America £ 514 Million then for the next tens years £43 Million.

Middle East, Syria and the Lebanon 370 Million then for the next tens years £46 Million

China £ 236 Million, then for the next tens years £79 Million

The rest of the world £ 210 Million, then for the next tens years £205 Million.

Costs £ 20 Million per year.

Have the HSBC Group paid over $2 billion in fines and settlements in the USA in the last four months?

This may be too high a price for the HSBC Group to pay to restore their reputation?

By helping the world maybe, just maybe, the citizens of the world, may be able to start to forgive the shameful behaviour of the HSBC Group and the behaviour of Board of Directors of HSBC Holdings Plc that were Board members while this illegal and criminal behaviour was going on.

Concerned shareholder

Regards
Michael Mason-Mahon
Mobile: 0044 7834763544
Mobile: 0044 7448770801
E-mail: [email protected]

"First they ignore you, then they ridicule you, then they fight you, and then you win."

manoharlalsharma

5 years ago

Every person should take lessons from MANGI LALJEE and EXPOSE..

mohammed faisal

5 years ago

last ten year in my mutualfund and life insurance advisory business hundered of case i face from my client for mis selling and mis beviour and finally closed or withdraw or surender scheme and investor finally to pressure to forget money which put by them by worong advising,

i would like to inform money life that you are saying that in bank old person and female were targeting but sir this is worong in india 70% of people is low educating or non educating and have cremy layer category also belong in above mention % that means person who belong lower eduation and non education they face 80% problem mis selling in life insurance with non refundable money case like first year premium paid and say after three year get handsome return or per month income so and so ,

investor also doing big mistake in that case how much commission would like to offer to me for buy a life policy and they ignore everthing lieu of commission and take policy,

investigation by me that 70% life insurance advisor was realitive of investor or friend or bank offer,
need to record audio and video for selling policy like trading call record before put order,


regards
mohammed faisal
financial advisor
( mutual fund and life insurance advisor )

REPLY

Dayananda Kamath k

In Reply to mohammed faisal 5 years ago

it appears that everybody is sales agents for gadgets.everybody is worried about preventing rather than punishing the wrong doer. if you punish the wrong doer appropriately and fast that will prevent such things.by all these rules you may have to move with hidden camera voice recorder and remote access and recordings. for catching 1% of culprits you are punishing 99% of innocent people. and making them feel criminal.

Michael Mason-Mahon

In Reply to Dayananda Kamath k 5 years ago

The best way of dealing with mis-selling is very simple.

1) When a sale person has made a sale, if this has been done on a visit then the company has to contact the person within seven days.

2) The company has to go through the full appilcation and what the person has signed up to.

3) All these interactions with the customer must be recorded.

There are many ways a company can make sure these illegal practices are stopped.

Michael Mason-Mahon

In Reply to mohammed faisal 5 years ago

Mohammed
May I say you are right, this is mis-selling, any mis-selling is fraud.
Under the Indian Penal Code Section 52. “Good faith”.- Nothing is said to be done or believed in “good faith” which is done or believed without due care and attention.

How many people's lives have been ruined because people are not being HONEST

Rajeev Kapur

5 years ago

HDFC Standard Life tops complaints chart
Last updated on: April 24, 2013 13:42 IST
Rediffmail.com

REPLY

CA PRADEEP AGARWAL

In Reply to Rajeev Kapur 5 years ago

No Doubt about it, the service of HDFC Standard Life is very bad as per reports.

HN SHARMA

5 years ago

In a recent case in Nashik, Mr. Hirenkumar Narendra Patel (age 37 Yrs) had taken a ICICI Lombard Safe Home Policy for 5 years. This policy was taken in January 2008. On 14th October 2012, Mr. Hirenkumar Narendra Patel had died due to Dengue (Multiple Organ Dysfunction), a root cause of Mosquito Bite.

During May 2012, The Consumer Forum of North Delhi District passed an order that the Death due to Mosquito Bite will also be considered as an Accidential Death for Insurance Benefits.

In the instant case, ICICI Lombard has rejected the claim submitted by Mrs. Kalpana H Patel, the legal heir of the deceased stating that ICICI Lombard is not in a position to process the claim.

Please advise us for our further course of action so that the spouse of the deceased may process the case as early as possible to get the financial dues against the dues of her late husband against the policy.

Regards,

HN Sharma
Nashik
09960727459
Email - [email protected]
[email protected]

REPLY

CA PRADEEP AGARWAL

In Reply to HN SHARMA 5 years ago

Actually these private Banker's and Insurance Companies find ways to reject the claim.

The claim along with relevant papers be filed with the Insurance Omudsman as well as IRDA should also be made a party since IRDA is said to be looking after the welfare of claimants

CA PRADEEP AGARWAL

5 years ago

unless we all, correct ourselves and greed should be left behind and we should be happy with what we earn and in case needed more should try to obtain by legitimate
means-then only we can see a bright future and no case like Mr Mangelal's will figure.AND ALSO HAVE GUTS TO SAY NO TO WRONGDOINGS.

Dayananda Kamath k

5 years ago

if the ombuds man or rbi has taken action promptly to make the bank understand its folly this would not have gone to such a level. but cannot rbi now ask the bank to verify and compensate all the depositors who have been deprived of their savings.not in one bank but in all banks. in banks, even though its is due to fault of their systems or wrong interpretation the customers are over charged, they do not credit every customer who has suffered. it is credited to only those customer who have claimed. is is not the duty of regulator to enforce this.

REPLY

CA PRADEEP AGARWAL

In Reply to Dayananda Kamath k 5 years ago

Have they ever done this themselves, that they will do now(compensation to depositors) for Govt they dance to their tune(Banks).

S BHASKARA NARAYANA

5 years ago

Kudos to the money life team. Well done job. Even the RBI's OMBUDSMAN could not solve the problem. The team used the new technique "name and shame", similar to that of Bank's weapon on loan defaulters.

But, Most of us do not read the terms, even read do not resist to oppose the negative points and being trapped by the lure of the agents/staff. Lastly feel shy to make hue and cry

GOVIND GOPAL SHANBHAG

5 years ago

Hey - congratulations and all the best. In fact your follow up has resulted in quick justice and I never expected Indusind bank will react so fast. Please keep it up.

Padmakumar S

5 years ago

Dear Friends,
This is really good support done by MLF.
My case is different. ICICI bank,Tower band,Mumbai used my PAN card details and opened an A/C in the name some X minor. Then they Transacted Rs.4.9Crores. Then A/C was closed. It was Happen in 2008.
IT dept ask me to prove this money not belongs to me. it took SIX long month any many visits to IT dept.Finally Proved that that money not belongs to me and bank has used my PAN to open an A/C.
Then i approched EOWing,Chennai againest Bank,they said this happen in Mumbai.Go to Mumbai and make a compline.It is not possible for me.
Then i approch RBI BO,Mumbai,they said your bills address is Chennai.So you make complient in RBI-BO,Chennai.
I send a letter(Reg.POST) to Nodel officer,ICICI Bank,Mumbai.
It was return.Reason"Person Not in PLACE".
So my humbble reqest to ALL is "DO NOT BELIVE RBI" They are the FIRST CRIMINALS with ALL POWERS.
Regards,
PADMAKUMAR.S

REPLY

Dayananda Kamath k

In Reply to Padmakumar S 5 years ago

i am really surprised that rbi ombudsman has asked to you to approach chennai office. normally they themselves forward it to the concerned office of the ombudsman. but in my case since gurgaon comes under ncr it come under delhi office of onbudsman. but since gurgaon is in haryana they will send it to chandigarh office and chandigarh office will inform that it will not come under their jurisdiction. so both the ombudsman have closed the case. this is how ombudsman function.

VIKRAM GAJJAR

5 years ago

i AM HAPPY TO LEARN THIS REAL LIFE INCIDENT.
IN GENERAL ALL SO CALLED PRIVATE BANKS ARE OPERATING IN THE SAME WAY.SEEMS THE ARE RUTHLESS AND CUSTOMERS INTEREST ARE LESS THAN PRIME.THEY TRAIN THERE STAFF TO "HOW TO MISS SELL A PRODUCT".ONE OF THE BANK STAFF ONCE SAID THAT THERE MANAGERS PUSH THEM TO SELL HIGHEST COMMISSION PAYING PRODUCT TO THE CUSTOMERS, E RESPECTIVE OF CUSTOMERS STATUS/AGE/NEED ETC...IGNORE EVERY THING ...JUST SELL. THIS THE BUZZ WORD.MORE OVER UNDER THE DISGUISE OF EFFICIENCY THEY ARE THE MOST INEFFICIENT STAFF.FOR THEM EVERY CUSTOMER IS A "BAKARA" AND THEY ARE READY TO SLAUGHTER.
ONCE AGAIN ,KEEP UP THE GOOD WORK 'MONEYLIFE'

G N GHOSH

5 years ago

CONGRATS TO MONEY LIFE TEAM TO HELP A SENIOR CITIZEN TO GET HIS RIGHT.
BUT DON'T BE COMPLACENT BY THIS VICTORY I WISH YOUR MOVEMENT AGAINST THE MISS SELLING BY BANKS SHOULD CONTINUE TILL THE REGULATOR COMES WITH PROPER RULES TO CHECK THE FRAUDULENT ACTIVITIES BY THE BANKS. IT HAPPENS EVERYDAY WITH ALL TYPE OF CUSTOMERS (MAJOR WITH SENIOR CITIZENS).
IN MY EARLIER COMMENT I SUGGEST TO BAN BANKERS TO SALE ANY TYPE OF THIRD PARTY PRODUCTS LIKE- MUTUAL FUND,INSURANCE,GOLD,SHARE TRADING INSIDE THE BANK BRANCH OR PREMISES , EVEN NOT IN THE SAME BUILDING WHERE THE BANK IS SITUATED AND SHOULD NOT USE THE DEPOSITORS CONFIDENTIAL DATA TO CROSS SALE OTHER PRODUCT.

CA PRADEEP AGARWAL

5 years ago

But, as seen sometimes the Banks force indirectly to carry out Insurance and to meet set targets, it generally happens with business
clients because in a way they are indebted to the BM by way of OD, etc.................BEST IS BAN BANKS FROM CARRYING OUT INSURANCE POLICIES OF CLIENTS OF BANK.

Are dubious finance companies in Bengal on the verge of collapse?

RBI says these are beyond its jurisdiction, SEBI has made some efforts to control them, but these finance companies use local courts to ignore orders. But now big companies, like Saradha group have started defaulting. Is it the beginning of the end of dubious finance companies in West Bengal which have been close to both the Left Front and Trinamool Congress?


Saradha group, one of the biggest finance companies in West Bengal is on the verge of collapse and according to news reports, the state government has issued an order for arresting Sudipta Sen, chairman and managing director (CMD) of the company for default on repayments. The Saradha group is just one of the many deposit-taking companies that sprouted and flourished in West Bengal under the garb of legitimate businesses such as real estate, agro products and tourism.

 

Over the past few years, West Bengal has seen the emergence of quite a few chain-marketing companies. Among them Rose Valley, Icore Group, MPS Group and Saradha group are the most visible ones. They are all about a decade old and claim to be highly diversified conglomerates today. Amazingly, these groups are all Bengali-owned when there is hardly any example of Bengali entrepreneurship of any kind.

 

While the Reserve Bank of India (RBI) has maintained that the deposit-taking companies does not fall under its jurisdiction, market regulator Securities and Exchange Board of India (SEBI) tried to rein in such companies in the past under its collective investment schemes (CIS) regulations. However, these companies managed to subvert the SEBI orders and continued to flourish with political patronage. But more about it later.

 

According to a newspaper report, SEBI's action against deposit-taking companies from West Bengal has so far failed due to intervention by district courts. As many as six district courts passed injunctions last year on SEBI’s cease-and-desist order against MPS Greenery Developers, the newspaper report said, quoting an official from SEBI. The market regulator even approached the Supreme Court against these deposit-taking companies, but this effort too could not produce any result.

 

Last month, SEBI requested the finance ministry to appoint a separate regulatory body for regulating deposit-taking companies and CIS operators.

 

Collectively, CISs operators are whispered to have raised over Rs20,000 crore, mostly from lower-middle class people in West Bengal, once ruled by the communists and Tripura, which is still under the red flag. With that money, they have bought media space and acquired legitimacy. Rose Valley has been a big advertiser with the Ananda Bazar Patrika (ABP) group. ABP has gone out of its way to promote them and celebrate their ‘entrepreneurship’.

 

Saradha group was one step ahead of other similar businesses. Since 2010, it acquired or launched several newspapers and TV channels. Unfortunately, over the past few weeks at least 10 media organisations of Saradha group shut shop due to financial issues.

 

According to media reports, about 200 commission agents of Saradha group met Trinamool Congress leaders demanding immediate intervention from the state government for recovering money from the group. The agents claimed that Saradha group has started defaulting on repayments since January and it is they who have to face the brunt of depositors.

 

“The state government assured them (agents) that it will take necessary steps to seize all assets of the Saradha Group by the weekend, the agents said after their meeting with Roy (Mukul Roy—general secretary of Trinamool Congress). Even so, they fear the state may not be able to recover anything from the 100-odd companies that the group ran. The group’s management had already started liquidating assets and there may not be much left on the books of its firms, they said,” the newspaper report said.

 

A common (surprising) factor among all deposit-taking companies is their phenomenal growth. For example, Rose Valley started as some kind of insurance and small-savings scheme, but it has now expanded into a long list of sectors such as hotels (Hotel Rose Valley), foods (Taste Me), amusement parks (at Agartala and Kolkata), resorts, media (Ruposhi Bangla, a Bengali entertainment channel, and News Time, a news channel) and garments (RV Fashions). Rose Valley's representatives claimed that the company had 10,000 acres of land all over India, 14 regional offices, 500 branch offices, 5,000 employees, and so on. Rose Valley claimed it was setting up many housing projects, hotels and hospitals. As of March 2012, Rose Valley Hotels and Entertainment had public deposits worth Rs2,900 crore, while MPS owes Rs1,320 crore to its around 16 lakh depositors.

 

Almost all of these finance companies have collected money by assuring huge returns from businesses like real estate, agriculture to some unheard of. For example, Sumangal Industries offers an annualised return of 15.6% on seven-day deposit by claiming to invest the money in potato bonds or warehouse receipts issued by cold storages!

 

Another interesting aspect of all deposit-taking companies is the source of money. Nobody knew exactly where the money was coming from for these companies, but everybody suspected that it was some kind of a pyramid marketing scheme, made infamous 30 years ago by the failed Sanchaita Investments. Sanchaita Investments went bust in 1980s leaving behind a long trail of ruin and suicides by number of agents and depositors in West Bengal.

 

So far, all deposit-taking companies, chit funds and CIS operators have received patronage from politicians across the party lines. Especially in West Bengal, the ruler got changed but patronage has remained the same. The CID and state finance department officials had once raided Rose Valley's office in Tripura, but to everyone's surprise, no arrests were made. Many people had attributed the outcome to Rose Valley's cosy relations with the Left Front.

 

The Saradha group is reportedly known to be close to Trinamool Congress leaders and the government.

 

Is it is the beginning of the end for deposit-taking companies in West Bengal? Or will they again find political patronage? We will know the answers in coming months.

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COMMENTS

Sanjit kumar

5 years ago

Regulators failed -
SEBI - in case of one of the company which pleaded that we are not taking deposit from Public but we accept deposit and sale time sharing, SEBI without going into the details has given letter that time sharing does not come within their purview. In case of few company SEBI has passed order in the year 2011 to refund money to the Investors within 3 months otherwise stringent action will be taken but thereafter no action was taken. Said company continued to accept deposit from Public instead of refunding.
IRDA - issued Licence to nearly 7000 corporate agents and subsequently in the year 2010 cancelled licence of 4261 corporate agents stating that since licence was pending for renewal but did not bothered to look that whether these corporate agents were stopped by the respective Insurance Company from Insurance business. One of the company under Prayag group on the basis of fake/tampered licence of IRDA got renewed its agency with LIC, despite the fact that the name of the said company appeared in the list of 4261 corporate agents. How LIc renewed licence it is a big unanswered question. Many of the corporate agents including Prayag were involve in the illegal business of acceptance of deposit from Public without permission of RBI.
On 20/10/2010 secretary of an NGO, Jharkhand Vikassansthan Godda,Jharkhand has made aware to the Then Union Finance Minister through registered letter.President of NGO has filed criminal case against the Then chairman LIC,other officers of LIC and Director of Prayag Group before CJM,Godda,jharkhand,who ordered for institution of case but after lapse of one year, in the year 2011 case was instituted by Police but still no action has been taken.
Even auditors and Bankers have not discharge their duty.
Local Hindi News paper covered news but at the same time they used to publish big advertisement of these companies.
Regularly Annual Returns of these companies is being filed before ROC but no body analyze the returns filed.
Even MP.Godda who is member standing committee in finance Ministry was made aware about mushroom growth of such companies.
Recently in Bhagalpur , Bihar local hindi news paper organised Mela jointly with Prayag Group,Pratigya Group etc on Sendis Compound alloted by District Administration. Even after making aware to District Administration about illegal business of these groups and how these companies gain public confidence through these activity, District administration did not bothered to restrain them from utilization of Sendis compound.
Even SSP,bhagalpur,Bihar was informed in writing in the month of March 2013 but no action has been taken.
Now it is a big question who will take action and how you can save innocent Investors,National Economy and even National Integrity.

Sanjit kumar

5 years ago

Regulators failed -
RBI - RBI simply says that these does not come within their jurisdiction. How RBI can say this,when without obtaining registration and special permission of RBI, any organisation/Company takes deposit from Public, RBI upon the information/knowledge of this fact should refer the case to Enforcement Directorate,SFIO,Econonmic offence wing or Police and monitor the case and should ensure action in time. How RBI office within the state is not aware when such big amount is collected by large number of companies. In the year 2010 the Then Dy commissioner,Godda,Jharkhand has made complain to RBI against company REAL BOND MARKETING, RBI referred the case to EOW,Jharkhand and thereafter no action was taken,ultimately the said company fled away with Investors deposit in the year 2012.
When ROC, New delhi was informed over telephone that one of the director of the said company has managed to obtain DIN in two names and in two name he was director in the company for fifteen days, no action was taken by ROC.

PRABAL BISWAS

5 years ago

The money is gone. Real estate bubble in West Bengal could go bust any day. I am loving it. The demi god has egg on her face.

ankur singh

5 years ago

http://www.nwoow.com/">Saradha Group Scam:http://www.nwoow.com/headlines/saradha-g...">Saradha Group CMD To CBI,Blackmailed By Trinamool MPs and visit this site http://www.nwoow.com

ankur singh

5 years ago

http://www.nwoow.com/">Saradha Group Scam:http://www.nwoow.com/headlines/saradha-g...">Saradha Group CMD To CBI,Blackmailed By Trinamool MPs

Dayananda Kamath k

5 years ago

where is sebi now? long back i have written to governor rbi as how rbi is becoming sponsorer of evry financial scam. by forcefully closing peerless they have made the peerless agents become part of this scam. may be next will be sahara agents may lure investors for other companies.

REPLY

Sanjit kumar

In Reply to Dayananda Kamath k 5 years ago

Probably some action is being taken, but there is a big ? mark on the working style of Regulatory. Please go to the following link- http://www.dnaindia .com/money/ 1825104/report- sebi-other- agencies- to-join-forces- against-investment-frauds

Sanjit kumar

5 years ago

RBI should refer the case to the enforcement authorities having jurisdiction as these companies are violating not only the RBI Act rather defeating basic purpose of the Act in relation to the deposit from Public. It is not only Risk for the Investors but have serious implications on Economy of the Country and may have implications on National Integrity and Security. Media and Political people should not promote them in the interest of the Country. An NGO, Jharkhand Vikassansthan Godda has made aware through registered letter to the Then Finance Minister, Sri Pranab Mukkeherjee in the year 2010 about these financial irregularities and role of IRDA and LIC of India in carrying of illegal business by such companies. In my opinion unless Registrar of Companies,Officers of RBI Non Banking Division, Bankers and Auditors of the companies, officers of the state Government, Some of the Media people are responsible for involvement of large scale companies in carrying of Illegal business and committing serious economic offense. Certainly these companies have patronage of senior Political leaders also due to which stringent action against these companies is not taken. But I believe strong action against these companies will be taken very soon, the way action against Sahara Group is initiated by SEBI on the direction of Supreme Court. Himachal Pradesh High Court has also given order restraining Sahara Group from acceptance of deposit from Public and even asked Enforcement Directorate to look into the matter of Money Laundering. --- Sanjit Kumar

REPLY

Dayananda Kamath k

In Reply to Sanjit kumar 5 years ago

i have sent an open letter to the conscious of supreme court some time in 2010 about how every govt department, ministry including directorate of public grievances, prime ministers office, loka sabha speakers office, presidents office are not functioning as mandated them to be functioning. along with copies of my correspondence. which virtually means break down of constitution machinery. but no response nor any action till date. that is why we need special laws every time a new incident happens. where as no action is initiated under existing law.

Ajit Pawar, Munde, Thakare and Shivraj Patil among others to get statutory notices from BMC for removing their illegal constructions

Perhaps, for the first time in recent period so many big political leaders have been issued statutory notices for illegal acts done by them. As per the statutory notice if they do not dismantle their illegal constructions, they all will face prosecution

The BrihanMumbai Municipal Corporation (BMC) has issued statutory notices to several big names in Maharashtra politics, like deputy chief minister Ajit Pawar, Punjab governor Shivraj Patil Chakurkar, ministers Anil Deshmukh and Patangrao Kadam, Bharatiya Janata Party leader Gopinath Munde and state Congress chief Manikrao Thakare for removing illegal constructions in their commercial premises.

 

The BMC has issued the notices following complaints and a legal notice by social activist Amit Maru. All these big politicians have made changes to their allotted residential and commercial space at Sukhda Shubhada Co-operative Housing Society at the upmarket Worli area in Mumbai.

 

The notice issued by the BMC says...

“You are therefore hereby called upon:

To remove unauthorized addition & alteration ….. & discontinue the said unauthorized user from shop to office carried out beyond part occupation Certificate/ plan sanctioned  u/No EE/5561/GS/A dt.16.10.2004

Within one month from the date of receipt of this notice by you:.

Please note that on failure to comply with the aforesaid requisition, you will be liable for prosecution under the said Act and the aforesaid requisitions you will be carried out at your risk and cost.”

 

According to Yogesh Pratap Singh, former IPS officer and now a well-known advocate and activist, this society was been built on the land earlier owned by Mumbai police. “Incidentally, this land was taken away from the home department and given to the political leaders of our nation for constructing posh flats and commercial premises,” he said.

 

The other big names who have been issued such a notice, include Ranjit Deshmukh, former minister, Anna Dange, vice-president of Nationalist Congress Party (NCP), Pratapsinh Mohite Patil, Salil Deshmukh (son of Anil Deshmukh) and Ashok Patil.

 

“Since such large numbers of senior politicians have indulged in such illegal acts, therefore the conditions of allotment stand vitiated. Hence it would be desirable that the allotment of this land be cancelled and the land be reverted to the police department, which is desperately in need of setting up anti-terror and anti-crime units in the centre of the city and Worli is the ideal location for that. These units are required to tackle 26/11 type terror attacks on an efficient basis,” Mr Singh said.

 

Earlier, bureaucrat-turned-activist Abha Singh and Mr Maru, have alleged that Mr Munde, who is also deputy leader of BJP in Lok Sabha, was  refusing to close his office at the society despite orders from the BMC.

 

According to advocate Singh, the BJP leader has merged shops originally allotted as convenience shops and connected it to the basement in Shubhda Co-operative Housing Society.

 

She said, the BMC sent a notice to Mr Munde, however, the BJP leader and others are not complying with the orders. “It is believed that for the reason of refusal to remove office and other illegal acts, the municipal corporation is now considering strict action of filing an FIR in the matter and to start demolition proceedings. We will also be shortly moving the Environment Department for action under the Environment Protection Act, 1986,” Adv Singh had said. (read more Gopinath Munde defies BMC order to close his Worli office )

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COMMENTS

nagesh kini

5 years ago

The banners "wishing happy birthday" to big and small netas are invariably put up on Fridays as they know that BMC doesn't act on Saturdays and Sundays!

Amit Maru

5 years ago

There is one more question that often poor Slumdwellers are given only 48 hours for demolition or if any violation of law is there herein they had given them 30 days does we have two type of laws one for poor and other for richer class people.

PRABHAT

5 years ago

ITS GREAT . BUT IT IS NOT SUFFICIENT , BEING VVIP , THEY MUST BE PENALISED ALSO FOR MISUSE OF THEIR POSITION FOR THEIR PERSONAL BENEFITS .

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