Temper Your Expectations and Gather Evidence, Advises IGRC Veteran, Dr Ganatra to Victims of Broker Fraud
“By and large, in my several years of experience on the IGRC panel, if I were to average out the claims and the amounts recovered, despite my best efforts and those of my colleagues on the panel, the figure does not even work out to 25%,” said Dr Rajendra Ganatra, a veteran insolvency resolution professional (RP) and member of the investor grievance redressal committee (IGRC) of the National Stock Exchange (NSE), while speaking on a webinar organised by Moneylife Foundation. 
 
Moneylife Foundation had organised this webinar on a very short notice for the benefit of investors who were left in the lurch by the recent Anugrah Stock & Broking fraud, with the aim of educating all investors alike on the NSE grievance redressal process and the possible outcome one can expert.
 
Being a member of IGRC panel for seven years, Dr Ganatra shared his experiences while handling such cases and began his talk with a brief explanation on how the committee has been empowered by regulators for the benefit of investors.
 
 “IGRC is not a judicial body, it’s a redressal or resolution body. It does three things – analyses documents and figures pertaining to the case, it listens to both parties namely the complainant and the trading member or broker, and then comes up with its recommendations. But before recommending a solution, it tries to come up with an amicable settlement,” explained Dr Ganatra.
 
Using examples of previous orders that the IGRC had passed, Dr Ganatra successfully explained not only the decision making process of the committee, but also the outcome that investors can expect in such cases. In one such instance, while describing a case of unauthorised trading on an investor’s account, he said, “Observing the facts of the case, when we realised that the investor had genuinely and unwittingly given the authorisation as it was wheedled out of him by relationship managers, there is an obvious and clear modus operandi on the broker side. We treat this as a case of undue influence and pass an order accordingly. The orders we pass in such cases are in favour of the investor and have been upheld by an arbitration panel as well.”
 
According to Dr Ganatra, in cases of unauthorised trading, trading members often try to use an alibi saying that “the investor has accepted regular pay-ins and pay-outs, and acceptance of such transactions are inherently acceptance or authorisation of the respective trade.” This reasoning according to him is flawed, “an unathorised trade does not become authorised, just because someone has accepted pay-ins and pay-outs. The investor did not know what was going on and this does not make the trade authorised.”
 
In his experience, some trading members have also attempted to claim the law of limitations to be applicable in cases where investors have only realised years later that unathorised trading had taken place in their accounts. Again, Dr Ganatra believes this to be a flimsy excuse saying that, “the lime limit is not a factor if there is no valid contract. The law of limitation only applies if there is a valid contract and this is not the case in an unauthorised trade.”
 
Throughout his talk, Dr Ganatra repeatedly emphasised that “all communications between an investor and a trading member are very obvious and can be proven. It is the responsibility of the investor to gather sufficient evidence and prove the fact of unauthorised trading to an IGRC panel.”
 
“Analyse your ECNs and prove that there is no question of a pre-trade confirmation, and that confirmation was extracted from you in an illegal manner. Examine the logs and trades, show that these trades were unauthorised and were done only to hoodwink you and to gain high brokerages,” he further added. 
 
His key advice to troubled investors of Anugrah Stock & Broking was to take the time to analyse all transactions on their trading account and accordingly decide whether there was a case of unauthorised trading or misuse of funds.
 
These investors essentially need to painstakingly go through each mail and message, segregate those that were authorised and those that occurred unbeknownst to them. 
 
Looking at the facts of the Anugrah case that are present in the media, Dr Ganatra feels that a forensic as well as operational audit will be necessary, as he believes that investors' money has been illegally diverted. However such audits are not something that can be mandated by an IGRC panel and will have to be taken up through a legal route under the guidance of a knowledgeable advocate.  
 
The webinar was attended by over 200 concerned investors and Dr Ganatra also took the time to address a few queries from the participants. 
 
Watch a Video Recording of the Session:
 
 
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    COMMENTS

    Ramesh Popat

    1 week ago

    for all the videos, transcript must be followed for better mutual benefits.

    Sudhir Mankodi

    2 weeks ago

    Your video recorded session is not opening. can you do something @ it?

    “In our 47 years with the tribals we have never come across rape; they may go hungry but never steal” – Dr Prakash Amte at Moneylife Foundation’s 10th Anniversary
    "Working with Madia Gond for over 47 years is an eye opening journey for us. We did help them to join the mainstream, but at the same time learned how life can be enjoyed with simplicity and without expecting anything in return," says renowned social workers Dr Prakash Baba Amte and Dr Mandakini Amte. They were speaking at Moneylife Foundation's 10th Anniversary function at Mumbai.
     
    Elaborating on "Odyssey of Community Service: A Personal Reflection", Dr Prakash Amte says, "Our second patient was brought on a bed (khatiya) and left by carrying the bed on his back. He neither looked back nor uttered a simple thank you to any of us. At that time we felt bad. But then after learning about their lifestyle, we realised, this is a community that stands for each other. When someone is need, all he or she has to do is ring the bell and everybody chips in helping. In return this person too helps others. So there is no thanksgiving in their lives. We are also doing the same and do what ever we can without any expectations."       
     
     
    "During all the years we are working with the Adivasis, we never came across a single rape case. They would remain hungry, but would never steal. And when someone needed something the entire community stands behind the person and helps. Not to forgot the great tolerance these people have, which is rare among the people who live in the cities, " he added.
     
      
    According to Dr Mandakini Amte their work is result of a teamwork. She also shared several touching moments from her lives together. Describing her marriage with Dr Prakash, she says, "Love is an accident, but what followed is more of a positive, well-lived life. I was doing my post-graduation in anaesthesia in the Government Medical College (GMC) at Nagpur, while Dr Prakash was pursuing his post-graduation in general surgery in the same college. We met for the first time in an operation theatre and then decided to get married. Baba (Amte) called me over to Anandvan and asked if I was ready to live with Prakash in a jungle for the rest of my life. When I assured him that I was, he gave his consent."
     
    Recounting their initial days, Dr Mandakini says, "Our first patient was a 10-year boy, who was almost 40% burnt due to epilepsy. The Adivasis had tried to treat him with their regular 'mantrik' but it failed and the boy was left alone to die. We requested the Adivasis to allow us to treat him, which they readily agreed to. We cleaned his wounds, wrapped bandages and gave him antibiotics for two-three days. Since this was the first time in the boy's life to get an antibiotic, its results were fast and very good. He was fully cured."
       
     
    Quoting Baba Amte, Dr Prakash says, “My father had a very simple definition of social work and life. He followed only one religion, the religion of humanity and serving needy people. Baba had no political philosophy and thus he used to meet people from all political ideologies with ease. We too follow the same principle. Simplicity is the mantra that we follow at Hemalkasa, and Anandwan.”
     
    "We need more dedicated workers to build a humane community where people can live in peace and harmony. We need to build bridges between the haves and have-nots, in every sphere," the Ramon Magsaysay-awardee added.
     
     
    Both Dr Prakash and Dr Mandakini Amte are well known for their philanthropic work, Lok Biradari Prakalp, in the tribal areas of Gadchiroli district of Maharashtra. They now run, a school of 350 students, and tend injured wild animals. 
     
    The famous biographical film "Dr Prakash Baba Amte: The Real Hero" starring Nana Patekar and Sonali Kulkarni is based on their life story.
     
     
     
     
    Dr Amte shared the story of how his journey started. He said that the idea of setting up a centre for the tribals of Gadchiroli had taken root in Baba Amte's mind when he saw that huge social injustice was being done on them by the government. Baba required someone who was dedicated and willing to stay in the area, preferably a doctor.

     
    He mentioned how in 1970, Baba took him to the forest for a picnic. "What you see at Hemalkasa today is outcome of that picnic," he says.
     
    Dr Prakash knew his father well and realized that Baba was testing him. He promised Baba he would work for the tribals. Thus a young surgeon studying in his second year of post-graduation left his college and entered the forest, never to return and make his work internationally-known.
     
    The work was started modestly with the only objective to somehow survive for the day, however he has walked a long road and reached where he never sought to reach. Thus, Lok Biradari Prakalp (LBP) was established in 1973. 
     
     
    He explained how Madia Gonds were virtually cut-off from the outside world; their only contact was with unscrupulous forest contractors and forest guards who exploited them, ruthlessly.
     
    When Dr Prakash Amte first came to live in the forest in 1973, he had trouble even approaching the tribal people. The tribals would run away in fear as soon as they saw him in his modern clothes. Any person wearing modern clothes was only there to exploit them as far as they were concerned. To gain their trust, he decided to shed his modern clothes and dress like them.
     
    The most challenging part of our work in those days was to diagnose a patient without any investigations. Dr Prakash Amate says, "There was no electricity, so the question of X-Ray machine or any other diagnostic equipment was out of question. I was surgeon, while (Dr) Manda was anaesthetist, and had no knowledge about treating other diseases. But problem was either we treat the patient or he/she would die. So we studied books to learn treatment of various ailments and treated the Adivasis.
     

    "We treated one patient who was attacked by a bear. His skullcap was fixed with about 100 stitches and after few days, he recovered. However, in the attack, the bear had punctured his eyes and we had no cure for this. The patient left Hemalkasa. After few months, we equired about him since he was saved and completely recovered from ghastly bear attack. We were told by the Adivasis that he died as he could not gather or get sufficient food due to his blindness from the bear attack," he added.

    Blindness, especially from cataract was a major problem and used to be a threat to life for the Madia Gonds. "We then learnt to do surgical procedures for cataracts because a blind person was a liability in the family and would die due to lack of food."

    "The testing moment during our initial days was when Digant, our son, became unconscious and started having convulsions. It was very difficult to treat our own son without investigations or specialist facilities. Somehow, we made a probable diagnosis and treated him. Since we had treated similar patients earlier, we diagnosed it as cerebral malaria. He regained consciousness after a few hours, but later, developed focal epilepsy and had to be on anti-epileptic medication for the next seven years. May be it was due to delay from our side in diagnosing and treating him in time. But today, Digant is a doctor and along with his wife Anagha, a gynaecologist, are looking after the Lok Biradari Hospital" Dr Prakash Amte says.
     
    In 2008, Dr Prakash and Dr Mandakini Amte received Ramon Magsaysay Award for Community Leadership.
     
     
    The citation of the Award states: "In electing Prakash Amte and Mandakini Amte to receive the 2008 Ramon Magsaysay Award for Community Leadership, the board of trustees recognizes their enhancing the capacity of the Madia Gonds to adapt positively in today's India, through healing and teaching and other compassionate interventions."
     
    NOTE: For more details on donation for the exemplary work of the Dr Amtes kindly visit http://anandwan.in/donate.html
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    COMMENTS

    amit_4060

    4 months ago

    Prakash amte's life is such an inspiration. I also want to connect with this mission. kindly advise how to connect - https://www.realbharat.org/dr-prakash-baba-amte-amazing-example-of-how-man-wild-animals-can-live-in-perfect-harmony/

    mahesh.bhatt

    7 months ago

    Some Lives Live to Serve Mankind & Thus serving God Truly Jai Ho Dr Mandakini & Dr Babaji AmteSaheb Pranams Vande Mataram Ganpati Bappa Morya Mahesh Bhatt Kirticorp

    Legal Transcriptions are Vital and Must for an Efficient Judicial System in India
    “We need to have more transparency and the citizens of India deserve proper access to justice and legal transcription services are a very important addition that is needed in our judiciary,” says Amrish Kilachand while speaking at an event organised by Moneylife Foundation on the importance of legal transcriptions. 
     
    Mr Kilachand, a businessman by profession, had filed an intervention application in the Supreme Court to move the court to approve transcription services for all courtrooms in India, similar to what they have in Canada, the US, UK, Canada, Australia and other nations. The original petition, Mr Kilachand had joined as an intervenor, was filed by senior advocate Indira Jaising. Mr Kilachand was represented by Advocate Jamshed Mistry in the Supreme Court, who was also present for the session at Moneylife Foundation.  
     
     
    The event started with the presentation of two short videos, which showed how live steaming of court proceedings take place in Canada and more recently on a trial basis at Madurai in Tamil Nadu. 
     
    Using these videos, Adv Mistry explained how a live streaming of courtroom proceedings is truly seamless and to the point without any interruption from the recording systems. 
     
     
    During his talk, Adv Mistry explained how he was surprised to receive transcript of court proceedings from a Canada court. He said, “We had a two or three hour hearing and in the evening when I met my client, he suddenly pulled out a sheaf of papers. It turns out he had the order sheet and legal transcriptions of the entire proceedings of what had occurred in the court earlier in the day. Everything, including name, date and time.
     
    Every single word was recorded. It is beautifully bound and given to you. There it was available in electronic form or in paper, and you can print it out if you wanted.” 
     
     
    Comparing this particular transcription to an ordinary copy of the order that you get in a court in India, Adv Mistry explained that in India we only get very basic details - “matter heard on so & so; order passed on so & so”. 
     
    “The stenographer in Indian courts takes down only what he or she has been told to take down and not the entire transcription of the case. The Judge reviews it and sometimes you get what you said or what you did not say at the end of the day,” he said. 
     
    Furthermore as we file our appeals based on what the Judge has put forward, there is a lot of room for misinterpretation, he added.
     
    Mr Kilachand has been a litigant in all manner of court cases for the past almost 22 years and has experienced legal proceedings from the lowest to the highest courts across several states as well as the Supreme Court in India. He explained that the legal system is completely clogged in India with people very rarely going through “final hearings, when everything is stopped by motions that themseleves take 10-15 years”.
     
    Elaborating on the problem he explained, “You cannot blame the judges either, because in reality a judge has over 100-150 cases before him. To actually expect him to read this kind of paperwork and come prepared the next day is ridiculous. We also have a system where judges change frequently, so there is no continuity. Counsels also change all the time.”
     
     
    It is very difficult to get justice when there such problems in the judicial system. Mr Kilachand presented legal transcriptions as one means to resolve these issues. The primary advantage a legal transcription provides is transparency; it also binds all the parties involved - the litigant, the lawyer and the judge, he added. 
     
    He says, “Everyone will have to careful in what they say when each and every word they say is being transcribed. You cannot come next day and say that I did not say this or that. It will inevitably clean up the whole system.” 
     
    Even the problem of frivolous litigation will disappear as it will put pressure on the lawyers and litigants when every word said in the courtroom is being recorded, he added.  
     
    In India we established court system of a plethora of judges, litigants, advocates, and witnesses appearing on a daily basis and expect that they all carry out their functions effectively while being well acquainted with the rules and regulations of the courtroom. 
     
    A video recording of court proceedings, can play a crucial role in creating awareness among everyone involved and would in turn regulate the behaviour of the masses in the profession. It would also undoubtedly benefit in increasing transparency in the judicial system, both Adv Mistry and Mr Kilachand opinioned. 
     
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    COMMENTS

    Ramesh Bajaj

    8 months ago

    Legal Transcription, as Adv Jamshed Mistry says, will be fantastice way forward to get justice. Nobody can say that " I didn't say this...." and get away with it by denying what he has said, because it will all be recorded.
    It is incumbent on us and lawyers, to find and seek the truth, prove the truth, reveal the truth (which will help get justice.)
    Or else, in reality , it is very difficult and will continue to be so.

    Aditya G

    9 months ago

    There's no point comparing us to Canada or United States. It's a reductive argument because Canada doesn't have India's population and a messy legal system (and laws) in the first place. And it's one of the 'least corrupt' countries in the world (well, supposedly). We might as well compare our infrastructure to Germany or China or our financial system to United States or Hong Kong i.e. compare apples and oranges. This whole comparison game doesn't solve any problems because it's a mindset problem more than anything else. Of course, it's a good starting point for introspection, but that's about it.

    Needless, legal transcription could be groundbreaking if implemented, and will spill over to other courts, including NCLT, Consumer Courts, and even verticals such as parliament proceedings, and oh even what happens in a police station. I'm all for best practices that improves systems. Totally.

    Undoubtedly, it is the justice system that needs to be cleaned up more than anything else, and if this happens it'll have a domino effect on the rest of the country. But how do we go about this?

    Sadly, ideas are useless without the right mindset and respect for the rule of law. Moreover, our mindset will take years to change. Just look at our Bankruptcy Law. It ends up in courts anyway. It's either the law is framed so poorly or we just blatantly disregard it and hope courts can solve our problems (which is what crooks love to do). Hilarious. Everything is Kafkaesque.

    Vaibhav Dhoka

    9 months ago

    No doubt judges are overburdened,but that is only tip of iceberg.Judges overall are not accountable and advocates take adjournment and unnecessary prolonge cases , advocates on either side loot litigants.Whole legal process is tedious and made cumbersome.If this transcript is made compulsory it will reduce corruption and speed up system.

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