| Dear Dr Thakur,
The SEBI gives its nod to each dick & harry. It never adjudges quality of any IPO. In case SEBI takes any action a company, the SAT sets the company free at a later date. Apart from others, Karvy consultants case is blatant example in case of IDFC & Yes bank IPO scam where, Registrar to issue, banker to issue have come up as Clean. Hence SEBI is more frustrated with the duties entrusted upon it.
You will be aware of the fact, recently SEBI has allowed trading from 9 am in place of ages old 10 am. The SEBI has done the same in pressure & pleasantries of some vested interested (to my understanding). The trading community, broking community has not gained anything in the deal as such & the business volume has also not increased as it was presumed.
I do not wish to write more on wrong/favoured decisions of SEBI, but certainly in EMMAR MGF case you are right.
To my belief, there is not provision of fund utilisation audit reporting has been devised by Institute of Chartered Accountant of India (ICAI). I believe there is no Engineering audit provisions in CAG system too.
The funds in India are diverted by the companies by violating The Companies Act 1956 and the so called offence is compoundable to comply with the provisions, EMMAR MGF case may not be alone & only.
--- On Wed, 5/5/10, Nutan <nutanthakurlko@yahoo.in> wrote:
From: Nutan <nutanthakurlko@yahoo.in>
Subject: [rti_india] Commonwealth games in danger
To: rti_india@yahoogroups.com
Date: Wednesday, 5 May, 2010, 6:28 PM
Friends,
We are all aware that India got a chance to host the Commonwealth games after a long persuasion with International authorities. The games are to be held in October 2010 at New Delhi. This is a matter of National Pride to all of us.
Though Government is apparently showing its seriousness and sincerity regarding the preparations but there are many facts which will make you believe that the progress of preparation is not satisfactory. More seriously, there seem to some very severe and dangerous issues related to these games which need immediate attention. As an individual and as a group, we have tried to know the reasons behind such a situation but have so far failed miserably due to the non-cooperating and callous attitude of various government agencies.
It all started when in the beginning of December 2009 Enforcement Directorate raided more than a dozen premises of EMAAR-MGF , which incidentally is the main company involved in the Commonwealth Games preparation. This made us feel alerted and we started following the course of events. We got even more suspicious when the news came that this company had approached the DDA and pleaded about its financial crisis on which DDA gave them about Rs. 500 Crores to bail them out. For a brief introduction, EMAAR-MGF is a joint venture between Dubai based EMAAR Properties and Indian MGF Development called EMAAR-MGF Land Limited. They got a permission of FDI by foreign collaboration approval no. FC II 106 (2005) / 37 (2005) dated 12/05/2005 from EMAAR Properties PJSC Dubai.
One of the main irregularities committed by the company seems to be the fact that the above FDI was permitted for the development of Real Estate and this fund could not be used to purchase the agriculture land. Yet, as per the Enforcement Directorate' s own version, this Company has purchased about 8700 acres agriculture land out of this fund which is blatant disregard of the legal provisions and is apparently a criminal act on the part of company. Even the M D of the company Mr. Shravan Gupta has admitted the diversion of fund to buy agriculture land. Thus a group that was permitted to bring in Rs. 7000 crores to invest in real estate purchased agriculture land in Uttar Pradesh, Haryana and Punjab on cheap price exploiting the formers and clearly violating the terms and conditions of the licence.
As per the newspaper's reports, E D had seized nearly Rs. 9 crores in cash besides 2 Kg of Gold and foreign currencies worth Rs. 5 lakhs. Also, the ED's version that came out in Media stated that this group has floated more than 350 companies, a large number of them being in Cuyprus, Camen Island, Mauritius and Singapore rtc about which the ED suspected that a huge amount of money was routed and re- routed through these companies through Hawala.
When we found that even after these raids and such serious revelations ED was not taking any action against the company and meanwhile SEBI had permitted them an IPO for more than Thousands crore in the month of January, 2010 without considering these raids and irregularities, we were really alarmed at these unwarranted developments. More so in the context of the fact that the same group was going to be a major player in the team that is involved in the preparation for the Commonwealth games.
This made Dr S K Singh file a RTI application to Enforcement Directorate to know about the status of the case. By their order no. MISC/ ORDER/LZO/10 Dated 29th March 2010 signed by Mr. Prabhakant they informed that the Information cannot be provided because the ED is exempted under section 24 of the RTI act 2005. Again Dr Singh filed the RTI's to as many different authorities as the Prime Minister's Office, Secretary Finance, Secretary Revenue, CBI, DDA, SEBI, Corporate affairs, CVC, FIPB, Supreme Court and FIU IND. We have got replies from most of these offices but one that that seems obvious is that they seem to be bypassing and skirting such a serious issue. The replies are just cursory in nature and one department is passing the ball to the next one and nothing concrete has come out. Again Dr S K Singh made written complaints to the President, Prime Minister, MOS to PMO, Finance Minister, NSA, The Cabinet Secretary, Director Raw, CBI, SEBI and Chairperson UPA. The replies are badly awaited.
In this circumstances we am convinced that there could be something genuinely fishy in this case. It raises a large number of serious issues about how these authorities are taking up such a matter of great concern. A company from Dubai is involved in this matter and this fact creates many other added suspicions which needs a proper, transparent and open enquiry to clear out the mess.
We are now left with no other option than to approach the Honorable High Court through a PIL which Dr S K Singh, Dr Nutan Thakur and Akhilesh Saxena are going to jointly file within a week. The PIL shall demand a thorough and immediate probe into the entire matter by an agency no less than the CBI so that all the facts come out in the open. The entire Nation would like to know the facts of the case, particularly when the company is involved in the preparations of the C'wealth games. If at all it is really tainted as the way the ED initially claimed, then there should be no reason to get it involved with such a prestigious and important affair as the C'wealth games. At the same time we urgently need your support to raise this issue and make a public awareness about it among the common people.
Hence this Press Meet.
Dr Nutan Thakur,
Convener,
National RTI Forum
94155-34525
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