RAJYA SABHA UNSTARRED Qs NO. 19 FOR 5TH Aug 2013 REGARDING EARLY WARNING SYSTEM TO DETECT FRAUD

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
RAJYA SABHA

UNSTARRED QUESTION NO. 19

ANSWERED ON MONDAY, THE 5TH AUGUST, 2013

EARLY WARNING SYSTEM TO DETECT FRAUD

QUESTION
19. SHRI N.K. SINGH:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) whether, to strengthen its capabilities to crack down on corporate wrongdoings, Serious Fraud Investigation Office (SFIO) has developed an early warning system to detect frauds;
(b) if so, the details thereof;
(c) the names of the organizations against whom Government has received representations/ complaints of financial frauds during the last three years;
(d) the action taken by Government against such organizations; and
(e) to what extent the new system would be effective in checking such corporate frauds?

ANSWER
THE MINISTER OF STATE (SHRI SACHIN PILOT)
(INDEPENDENT CHARGE)
IN THE MINISTRY OF CORPORATE AFFAIRS

(a) & (b) Yes, Sir. The Ministry of Corporate Affairs is in the process of developing an early warning system to detect cases of frauds. Pilot testing of the proposed system is expected to be completed during 2013-14.

(c) & (d) Complaints have been received against 154 companies/ organisations during the last three years. The Ministry has already ordered inspections u/s 209A and/ or investigation u/s 235 or scrutiny of the Balance Sheets and other documents u/s 234 of the Act in these cases. Some cases have been referred to the Economic Offences Wing of the concerned State Governments for further investigation. Names of the organisations are enclosed at Annexure-I.

(e) The alerts generated by the system will facilitate prevention of corporate fraud. Its efficacy can be evaluated after full operationalisation.
******

ANNEXURE-I
ANNEXURE REFERRED TO IN ANSWER TO PARTS (c) & (d) OF RAJYA SABHA UNSTARRED QUESTION NO. 19 FOR 5TH AUGUST, 2013 REGARDING EARLY WARNING SYSTEM TO DETECT FRAUD

NAMES OF COMPANIES AGAINST WHOM COMPLAINTS RECEIVED IN THE LAST THREE YEARS

SR. NO. / NAMES OF COMPANIES
1. Basil International Limited
2. Nixcil Pharmaceuticals Specialities Limited
3. Appeline Cosmetics & Toiletries Limited
4. Vamshi Chemicals Limited
5. Basil Express Limited
6. Leisure Club India Private Limited
7. Magic Airlines Private Limited
8. Crownmart International India Private Limited
9. Vaishnavi Corporate Communication Private Limited
10. Vaishnavi Advisory Services Private Limited
11. Noesis Strategic Consulting Services Private Limited
12. Claro Consultancy Private Limited
13. Speak Asia (Un-registered Company)
14. Reebok India Limited
15. Talbros Limited (Listed Company)
16. Shark Communications Private Limited
17. Hitech Computech Private Limited
18. Konichiva Builders Private Limited
19. Bharti Properties Private Limited
20. Heena Developers Private Limited
21. Saksham Infocom Private Limited
22. North India Securities Private Limited
23. Krishna Infomedia Private Limited
24. DMC Education Limited
25. Centenary Software Private Limited (Presently known as T and G Edutech Private Limited)
26. Alchemist Infra Limited
27. SGI Research & Analysis Limited
28. Wealth Line Promoters Pvt. Ltd.
29. Tycoons Empire International Ltd.
30. Unipay 2U Marketing Pvt. Ltd.
31. TIK Innovator’s Marketing Ltd.
32. Trillions India Distributors Ltd.
33. SGS Agro Farms Ltd.
34. Max Pro Marketing Pvt. Ltd.
35. Gold Sukh Trade India Ltd.
36. Oro Trade Network India Ltd.
37. Maithri Plantations and Horticulture Private Limited
38. Akshayagold Farms and Villas India Limited
39. Abhayagold Infratech India Limited
40. Bommarillu Farms & Villas Ltd
41. Raji Vedant Constructions Private Limited
42. Unigateway 2U Trding Pvt Ltd
43. TV1 Express Holidays Pvt Ltd
44. Vega Zeal Marketing Pvt Ltd
45. Megacity (Bangalore) Developers and Builders Limited
46. City Airlines Private Limited
47. City Communication Ltd.
48. City Money Ltd.
49. City Realcom Ltd.
50. City Limouzines (India) Ltd.
51. Car Runway India Ltd.
52. Shivaji Estate Livestock and Farms Pvt. Ltd.
53. Arrow Global Agrotech Ltd.
54. ACE Agro Products Ltd.
55. Adventure Country Resorts Ltd.
56. Hiramani Agro Plantation Pvt. Ltd.
57. Green Gold Agriculture (India) Ltd.
58. Aryarup Tourism and Club Resorts Pvt. Ltd.
59. Akshay Plantation Ltd.
60. Suman Motels Ltd.
61. AIM Resorts (India) Ltd.
62. Shree Om Sainath Car on Rent Ltd.
63. Pan Card Club Ltd.
64. Praptee Marketing Service Pvt. Ltd.
65. Red Carpet Entertainment and Marketing Pvt. Ltd.
66. Websoft Marketing Pvt. Ltd.
67. Maitriya Plotter and Structure Ltd.
68. BIM Finance and Investment Consultancy Pvt. Ltd.
69. Royal Twinkal Star Club Ltd.
70. Newlooks Retails Pvt. Ltd.
71. G-Link Revenue e-com Pvt. Ltd.
72. Speakasia Online Pte Ltd.
73. Mangal Murthy Auto Linked Pvt. Ltd.
74. Parees Enterprises Corporation Ltd.
75. Heramb Properties Pvt. Ltd.
76. HMbjs Properties Pvt. Ltd.
77. Maitriya Services Pvt. Ltd.
78. Sai Prasad Foods Ltd.
79. Samruddha Jeevan Foods India Ltd.
80. Multiventure Agro and Infrastructure Pvt. Ltd.
81. Zerostart Trading Pvt. Ltd.
82. Primestart Trading Pvt. Ltd.
83. Hindustan Sugars Ltd.
84. Samruddha Jeevan Entertainment Pvt. Ltd.
85. Samruddha Jeevan Construction Pvt. Ltd.
86. Samruddha Jeevan Finvest Ltd.
87. Samruddha Jeevan Infotech India Pvt. Ltd.
88. Samruddha Jeevan Hotels and Hospitality Pvt. Ltd.
89. Samruddha Jeevan Orchard Resorts Pvt. Ltd.
90. Samruddha Jeevan Milk and Milk Products Pvt. Ltd.
91. Samruddha Jeevan Trading and Manufacturing Company Pvt. Ltd.
92. Rose Valley Real Estate & Construction Ltd.
93. Rose Valley Industries Ltd.
94. Silver Valley Communications Ltd.
95. Rose Valley Food Beverages Ltd.
96. Rose Valley Marketing India Ltd.
97. Rose Valley Infotech Pvt. Ltd.
98. Rose Valley Hotels and Entertainment Ltd.
99. Rose Valley Projects Ltd.
100. Rose Valley Patrika Ltd.
101. Rose Valley Films Ltd.
102. Modern Investment Traders Pvt. Ltd.
103. Rose Valley Travels Pvt. Ltd.
104. Brand Value Communications Ltd.
105. Rose Valley Housing Development Finance Corporation Ltd.
106. Rose Valley Airlines Ltd.
107. Rose Valley Fashions Pvt. Ltd.
108. Rupasi Bangla Projects India Ltd.
109. Rupasi Bangla Media and Entertainments Ltd.
110. Rose Valley Realcom Ltd.
111. M/s Saradha Realty India Ltd.
112. Saradha Agro Development Ltd.
113. Saradha Exports Ltd.
114. Saradha Shopping Mall Pvt. Ltd.
115. Saradha Printing & Publication Pvt. Ltd.
116. Saradha Tours & Travels Pvt. Ltd.
117. Saradha Education Enterprise Ltd.
118. Saradha Construction Company Pvt. Ltd.
119. Saradha Garden Resorts & Hotel Pvt. Ltd.
120. Saradha Landmark Cement Pvt. Ltd.
121. Rose Capital Ltd.
122. Bengal Media Pvt. Ltd.
123. Bhasank Food Pvt. Ltd.
124. Global Automobiles Ltd.
125. M/s Icore E-services Ltd.
126. Icore Apparels Pvt. Ltd.
127. Icore Paints Pvt. Ltd.
128. Icore Iron & Steel Pvt. Ltd.
129. Icore Super Cements Pvt. Ltd.
130. Riju Cement Ltd.
131. Mega Mould India Ltd.
132. Papyrus Infotech Pvt. Ltd.
133. Icore Global Medicines Pvt. Ltd.
134. Icore Jwellery & Gems Pvt. Ltd.
135. Icore Polyfab Pvt. Ltd.
136. Icore Housing Finance Corporation Ltd.
137. Sunshine India Land Developers Ltd.
138. Sunshine Mutual Benefit Limited
139. Sunshine Land Projects Limited
140. Sahu Investment Mutual Benefit Company Limited
141. Sahu Investment Corporation Limited
142. Nirmala Sahu Business Complex Private Limited
143. Shiv Nests Private Limited
144. Synergy Tie Up Private Limited
145. Nirmala Dwellings Private Limited
146. URO Infra Reality India Limited
147. URO Hotels and Resorts India Limited
148. URO Hygienic Foods Ltd
149. URO Infotech Limited
150. URO Lifecare Limited
151. URO Trexim Limited
152. URO Autotech Limited
153. URO Agro India Limited
154. URO Walkers Limited.
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Govt undecided on 2crore compensation to Cong MP Rajeev Shukla

MUMBAI: Succumbing to the pressure from Opposition parties, the government has scrapped a land deal with a local education society associated with Union minister of state Rajeev Shukla, but has kept pending a decision on the society’s demand that it be reimbursed the amount of Rs2 crore it spent on registering and securing the land.

Last week, chief minister Prithviraj Chavan had asked the state administration to take back the land allotted to the BAG Film Education Society, of which Congress minister Rajeev Shukla was the secretary and his wife Anuradha Prasad the president.

In face of strong protests by the BJP, the society had declared itself willing to surrender the land. But it had demanded compensation for the huge amount it spent on registering the land, lease rent and other similar things.

T he s uburban collector office took possession of the land on Tuesday, confirmed the chief minister’s office on Friday. The local tehasildar completed transfer formalities on the grounds that the society wanted to surrender it.

The Bharatiya Janata Party had accused the government of giving BAG Films Educational Society a 2,821 square meter plot in Andheri reserved for a municipal primary school, and another adjacent 3,534.70 sq m plot reserved for a playground on ownership and lease in 2008 for a price much less than existing market rates.

It had alleged that the society would make profits by constructing a high-profile school on the plot.

However, a senior revenue official said that the department has not taken any decision on offering the money demanded by the society.

“We have completed the official procedure of land transfer. The seniors in the government may or may not decide on the society’s demand because the law pertaining to this is not very clear,” he said, requesting anonymity.

Shukla, ex-secretary of the society, was not available for comment.
Courtesy:
    17 Feb 2014
    Hindustan Times (Mumbai)
    HT Correspondent htmetro@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx

Mining: Lawyer-politicians caught in conflict of interests

New Delhi: Lawyer-politicians Abhishek Manu Singhvi and Pinaki Mishra, who appeared on behalf of different mining companies before the Justice MB Shah Commission, have brought back into focus the issue of conflict of interest that many representatives simply shrug off.

Singhvi, who is a Congress spokesperson and a Rajya Sabha MP, appeared before the Commission for Aditya Birla Group company Essel Mining, which has been accused of illegal extraction of ore worth Rs 4,368.75 crore. Singhvi also appeared for the Federation of Indian Mineral Industries (FIMI), which represents 350 mining companies. FIMI interfaces with the Centre for promotion of miners’ interest. Incidentally, FIMI president HC Daga is an advisor to Essel Mining, the other company that Singhvi represented.

Mishra, a Biju Janata Dal (BJD) Lok Sabha representative from Puri, represented Kalinga Mining Corporation and Sarda Mines Private Limited, both of which are accused of holding illegal ore worth Rs 3,485.89 crore (Sarda Mines-Rs 2,845.58 crore and Kalinga Mining-Rs 640.023 crore). Mishra even defended the companies against the interest of his own government in Odisha.

The Commission probed mining activity in Odisha, and concluded in its report, recently tabled in Parliament, that most mining activity in the state between 2008-2011 defied laid-down rules and was carried out under political patronage. In Mishra’s cases, the pane irected the Odisha government to recover Rs 59,200 crore from them and use it to develop Keonjhar and Sundargarh districts to help the tribals impacted by mining.

Both Singhvi and Mishra defended their actions, saying there was no conflict between their legal profession and their political allegiance. But Dr Arun Gupta, convener of Alliance Against Conflict of Interest, said that lawyers-turned-politicians do take advantage of vagueness of conflict of interest. “It (conflict of interest) is a serious issue biting into the integrity quotient of the Parliament, where a person from business class or his legal representative could have potential conflict while participating in parliamentary deliberations on public policy,” said Gupta.

Singhvi said he represented an association of mining companies and not any individual group. “This was in discharge of my professional duties as a senior counsel along with Ram Jethmalani, Gopal Subramanyam, Anil Dewan and others. It is not a conflict,” said Singhvi and added that as a senior counsel he was briefed by other lawyers, who held the vakalatnama for clients. “We have no connections with the client.”

Mishra said any potential conflict of interest would have arisen if he had defended the company on the floor of the House and reminded that he has never appeared before any court on behalf of government and has never been on any government-appointed committee or board. “As an MP, if I had raised the issue and spoken in the House without disclosing my interest then I would have been liable for indulging in conflict of interest,” said Mishra. “There is no connection between my party BJD and mining companies. As a professional, I was doing my service and I have no truck thereafter with these companies either.”

As many as 92 Rajya Sabha MPs have declared pecuniary interests in the register of interest under Rule 293, which contains crucial information about the financial and business interests of MPs, according to a study compiled by the Association of Democratic Rights (ADR). Incidentally, Singhvi, at Rs 50 crore, has declared the highest amount received from ‘professional engagements’.
Courtesy:
Iftikhar Gilani @iftikhargilani
Published Date:  Feb 17, 2014
http://epaper.dnaindia.com/story.aspx?id=59993&boxid=32061&ed_date=2014-2-17&ed_code=820009&ed_page=10

Cong MP’s trust demands 2cr to return leased plots

Mumbai: Congress Rajya Sabha MP Rajiv Shukla’s trust has sought a reimbursement of Rs 2.2 crore in lieu of returning the two prime plots in Andheri (W) which it had received on lease. It has told the state that it would remove the security it had deployed on the plots from February 15.

On receiving such a letter on Friday, chief minister Prithviraj Chavan wrote to the additional chief secretary, revenue, to forward the file to him so that the process of reclaiming the land could start.

Bags Films Educational Society (BFES), which had Shukla as its secretary at that time, had applied for the lease of the plots in 2007. A week later, Shukla resigned as secretary. According to the development plan, one plot was reserved for a civic primary school and the other for a playground. The trust, in its application, had mentioned it would build a school for the poor there. In 2008, the state leased out the plots to BFES for 15 years and in 2009, the trust got possession. The land was apparently given out at rates prevalent in 1976.

Activist Ashok Pandit, who exposed the government largesse to Shukla, said the plots together were now worth Rs 100 crore.

In its letter to the government, the BFES said when it took possession in 2009, it was encroached upon and that it rehabilitated 29 slumdwellers at Rs 1.85 crore. With government help, it razed 314 illegal structures but 27 encroachers were still there. The trust claims to have deployed security for which it has spent a huge sum, besides paying Rs 25 lakh on a fence and electricity. Also, it paid Rs 98,000 for the school plot and Rs 38,000 as rent for the playground, Rs 4 lakh as stamp duty and Rs 2.5 lakh for extension of time limit to build the school, it claimed.

BJP leader Kirit Somaiya alleged both CM and Shukla lied three months ago when the latter claimed he would return the land. “He is returning the land after being exposed. Merely because he has given it back does not mean he can escape prosecution. He must apologize to the people,” he said.
COURTESY:
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