Marquee MNC names trapped in IL&FS bond squeeze
Amazingly, the allure of the triple A rated IL&FS bonds was so toxic that while both Indian private and public sector got sucked into the honeycomb, a vast swathe of top rated multi national corporations also decided to invest their employees.
 
Ministry of Corporate Affairs supplementary affidavit filed with NCLAT on April 8 has revealed a treasure trove of fresh information. 
 
While IANS has been at the vanguard of exposing the extent of malfeasance at IL&FS, as also naming the companies and entities which have exposure to the virus infected bonds, the real size, scope and magnitude has now been revealed -- provident and pension funds of 1,400 firms, lakhs of employees and Rs 9,700 crore at stake and no real attempt either to cauterise the festering wound or begin a repayment process barring the recent April 8 order, which says that some element of prioritisation needs to be factored in for the hapless working class caught out of their comfort zones.
 
However, the government does not want preferential treatment for Provident and Pension Funds for it will upset the other equally huge clutch of creditors. So, in the catch 22 that prevails, everybody loses.
 
Over 150 intervening petitions have been filed with NCLAT seeking resolution of this matter for it is the working class -- blue and white collar -- which is directly impacted by this malaise. 
 
Investment banks, tech companies, pharma giants, airline heavy hitters, the list is long and the amounts large. 
 
On scouring through the long lists which run over pages and pages, IANS has now discovered that Bata India employees statutory PF, Glaxo India, Otis Elevator, Sumitomo Indian Staff PF, McCann Erickson India EPF, Lufthansa German Airlines employees local PF, Philips Electronics India, BASF, Novartis, Pernod Ricard, Bechtel India, JP Morgan, Nestle, shockingly Canadian High Commission India Staff, British Airways pls staff, Texas Instruments India, Volvo India, Cisco Systems India, Sanofi India, Sapient Consulting, BBC Worldwide India, McKinsey Knowledge Centre and Shell India.
 
Many of these companies have multiple exposure, for instance, Otis has several entries with different amounts varying from Rs 55 lakh to Rs 1 to 2 crore over different years, 2012 and then again in September 2015. 
 
What is perhaps even more pertinent is that slapbang in the middle of an ongoing election, the emergence of such sloth on the part of an entity like IL&FS where the government is unable to ring fence the savings of common working class folk is something that requires urgent attention.
 
Imagine the staff of American Embassy School PF, Barclays Bank Plc India, American Express India, Societe Generale EPF, British Airways has many entries ranging from Staff Pension Fund to Cabin Crew Pension Fund, ditto for Philips, Alcatel Lucent, Mercedes Benz R&D India, Procter & Gamble Executive Pension Plan, Adobe Systems, HP Globalsoft, Schlumberger, CapGemini, Cadbury India, Goodricke Group, Gillette, et al. 
 
As one turns page after page, many of these entities have multiple entries with enhanced exposure. Caught in a maelstrom which is growing exponentially, what should be worrying for these MNCs and their employees is that they fall in the category of unsecured creditors and their money is not at all safe due to the level of toxicity. This list compiled by MCA is as recent as December 31, 2018. 
 
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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tanay

5 days ago

I work in one of the mentioned MNC's, can you please guide on How to check how much of our PF portfolio is impacted because of these toxic bonds?

After Rafale Deal, Anil Ambani Group Got Rs1,125 crore Tax Waiver from France: Report
French authorities have waived taxes worth 143.7 million euros (about Rs1,125 crore) for Anil Ambani's France-based company just a few months after Indian prime minister Narendra Modi announced his plans to buy 36 Rafale fighter jets from Dassault, says a report from Le Monde. 
 
According to the French newspaper report, Mr Ambani, the chief of Reliance Anil Dhirubhai Ambani (R-ADA) group, has a telecom company registered in France called Reliance Atlantic FLAG France. FLAG France owns a terrestrial cable network and other telecom infrastructure in France. 
 
"This company, investigated by French tax authorities and was found liable to pay 60 million euros in taxes for 2007 to 2010. Reliance ADA offered to pay 7.6 million euros as a settlement, which was rejected by the French tax authorities. The authorities conducted another investigation for the period 2010 to 2012 and asked for an additional 91 million euros in taxes from the company," it added. 
 
Le Monde says, in April 2015, PM Modi announced plans to buy 36 Rafale fighter jets from Dassault. By then, the total amount owed by the Reliance ADA group company to French tax authorities was at least 151 million euros. 
 
"Six months after Mr Modi's Rafale announcement, the French tax authorities accepted 7.3 million euros from Reliance Atlantic Flag as a settlement, instead of the much bigger sum of 151 million euros. So between February and October 2015, while the French were negotiating the Rafale contract with India, Mr Ambani enjoyed a tax waiver of 143,7 million euros from the French state. Quite a cozy deal, right?" the report added.
 
Reliance Communication, the R-ADA group unit, however, rubbished the Le Monde report. In a statement, the company says, "Reliance Flag tax issue pertains to 2008, nearly 10 years old. Reliance Flag says the tax demands were completely unsustainable and illegal. Reliance denies any favouritism or gain from settlement."
 
The statement added that the Reliance FLAG settled the tax disputes as per legal framework in France available to all companies operating in that country.
 
"During the period under consideration by the French tax authorities in 2008-2012 (nearly 10 years ago), FLAG France had an operating loss of Rs20 crore (2.7 million euro). French tax authorities had raised a tax demand of over Rs1,100 crore for the same period. As per the French tax settlement process as per the law, a mutual settlement agreement was signed to pay Rs56 crore as a final settlement," the company added.
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AAR

3 days ago

Won't other French companies refer to this deal during their negotiation with French IT dept?

k vijaya bhaskar

5 days ago

Very clever way of conducting business deals! CAG can never compute the loss from these deals, whatever the number of methodologies it can deploy. Quid pro quo is also very difficult to prove. Congressmen were fools and liliputs. Their target was Rs 64 cr from Bofors. The present rulers do everything in wholesale, nothing retail!!

Jet union seeks FIR against Goyal, CEO Dube, SBI Chief
Annoyed over non-payment of their salaries, the employees association of Jet Airways on Friday asked the Mumbai Police to register a case against its founder and former Chairman Naresh Goyal, CEO Vinay Dube and SBI Chairman Rajnish Kumar.
 
The All India Jet Airways Officers & Staff Association in its letter said: "We call upon you to register offence under cheating, criminal breach of trust, misappropriation and other offences against the Chairman, the CEO, the representative of the State Bank of India (Bankers) as per specific provisions of Section 405 and 409 and other related Sections including 420 of IPC."
 
The Association urged the Mumbai Police to investigate the matter on an urgent basis and said that the Jet Airways staff will be forced to express its solidarity through constitutional means including "calling for a strike under the provisions of Industrial Disputes Act".
 
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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SACHIN K SUBRAMANYA

5 days ago

Correlation does not imply causation . Some of the media houses esp in India have taken it upon themselves to manufacture a non existent scam, at whose behest we all know. I am sure the chickens will come home to the roost soon.

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