Corporation Bank extended an overdraft facility of rs 7.74 Crore in 2007-2008 to Robert Vadra’s Sky Light Hospitality when his company had total resources of only one lakh rupees.
Robert Vadra’s Business Connections.
Asked what amount Corporation Bank would normally extend as overdraft to a borrower with a company whose issued capital was Rs. 1 lakh, Ajai Kumar, Chairman and Managing Director, Corporation Bank, told The Hindu: “It is not a question I can answer until I get the full facts. You should understand. You have to take the full picture.” He cited client confidentiality for not sharing the information, even if he were to get it, on Mr. Vadra’s business with the bank. However, he added that he could get the full facts from the branch in Delhi “may be by tomorrow [Thursday].”
Mr Chidambaram, this is not insinuation, but a charge.
Anti-corruption crusader and Janata Party (JP) president Subramanian Swamy on Thursday referred to a ‘mining scam’ in Goa and said that when present homeminister P Chidambaram was the finance minister between 2004 and 2007, he fiddled with export duties on mining ore so that mining companies like Vedanta reaped huge profits.
On a visit to Goa, Swamy addressed mediapersons and said the scam is worth around 16,000 crore. When he gets more time from his present engagement with the 2G scam, he will pursue the issue against Chidambaram, Swamy said.
The JP chief praised the movement spearheaded by Anna Hazare and expressed his willingness to join it, but said that Hazare and his team were focused totally on one piece of legislation – the Jan Lokpal bill.
Swamy said that he has proved that even without the Jan Lokpal bill, his Action Committee Against Corruption in India (ACACI) can get results, as evident from the results in the 2G scam so far.
He said the ACACI is now focusing on money stashed abroad. It has already given a 15-page complaint to the CBI asking it to file an FIR. “But the CBI has not filed the FIR even after one month. If and when it does, the ACACI will take the FIR to a criminal court and get a letter-rogatory. With that letter, the ACACI will go abroad and obtain details about the money stashed in foreign countries,” Swamy said.
He said that while the ACACI has provided names of politicians who have such foreign bank accounts, the French government has provided 788 names of Indians and the German government provided 16 such names.
“But the government of India is not prosecuting these people. If the CBI does not file the FIR by January 1, I will go to the Supreme Court asking it to direct the CBI to do so, like I did in the Raja case when the Prime Minister did not give me sanction,” Swamy said.
He said he has filed 17 files corruption cases against Chidambaram. These include irregularities in stock market and various other cases. “But my busy engagement with present cases is preventing me from pursuing the case”
Now, the scam that involves Rs.35,000 Crores is ,as expected growing involving Former UPA Minister Union of State ,Santosh Bargodia( 2006),who is expected to be arrested.
In the meanwhile, an Official in the Mining Ministry in Goa has revealed the details of the scam.This is being debated in TimeNow Channel to-night,Watch it.(24 September,2012)
CBI has also ordered the widening of the scope of the scam involving the NDA period.
Hope this does not detract the main case by mudslinging by the UPA and the NDA!
And let not the arrests end at the level of the junior officials and political non entities.
“The CBI has decided to expand its probe into coalgate bringing under its scanner all coal block allocations made since 1993 including the six-year NDA rule after a reference in this regard was received from the CVC on Monday.
Last week, coal minister Shriprakash Jaiswal wrote to Central Vigilance Commission seeking a CBI probe into all the coal blocks allocated since 1993 when the government had started allocation to private players for captive use.
Seeking the CBI probe, Jaiswal has also recently forwarded a letter written by seven parliamentarians to the CVC saying that blocks allotted between 1993 and 2004 including those given during the NDA rule should be investigated by the CBI, as allegedly favours were done to parties under political pressure.
The letter of MPs also sought for enquiry as to what system the government of India put in place for selection of companies for coal block allocation between 1993 to 2004 and whether these guidelines were followed and how were joint venture partners selected.
The CVC on Monday referred the complaints to the CBI to probe the matter and the agency will soon begin its investigation on it, CBI sources said.
The allocation of coal blocks to private companies for captive use started in 1993 when Coal Mines (Nationalisation) Act, 1973 was ammended with the objective of attracting private investments in specified end uses such as power, cement and steel because of growing economy.
In its ongoing probe, CBI has so far registered seven FIRs against private companies and unknown public officials for alleged misrepresentation of facts.
“Till March 2011, the ministry of coal has allocated 194 coal blocks for captive mining of which 142 were explored blocks and the balance 52 were either regionally explored or unexplored coal blocks,” Comptroller and Auditor General has said in its recent report on coal block allocation.
In what can at best be described as funny logic The Supreme Court refused to entertain the plea of Dr.Dr.Subramanian Swamy to include the present and the then Finance Minister P.Chidambaram in the 2G Spectrum case where the Government has been defrauded to the tune of Rs.1,86,000 Crore.
“1) The top court has found the petitions not maintainable and dismissed the requests of petitioners Janata Party chief Subramanian Swamy and lawyer-activist Prashant Bhushan that Mr Chidambaram be investigated for his alleged role in the telecom scam. Mr Chidambaram was Finance Minister in 2008, when then Telecom Minister A Raja allegedly gifted mobile network licenses and frequency to ineligible companies.
2) Mr Swamy’s petition said that Mr Chidambaram must be made a co-accused in the 2G scam case. His contention was that the minister must be held responsible for allowing the telecom scam on his watch as Finance Minister.
3) Mr Swamy said that Mr Chidambaram was aware of Mr Raja’s actions. On matters like the pricing of spectrum, he should have intervened to protect the country’s interests, Mr Swamy has argued.
4) A special CBI court had rejected Mr Swamy’s request in February this year and he had appealed to the Supreme Court against that verdict.
5) The other petition had been filed by leading lawyer and anti-corruption activist Prashant Bhushan on behalf of the Centre for Public Interest Litigation, a non-governmental organisation. It sought a CBI investigation into Mr Chidambaram’s alleged role in the 2G scam.
6) Mr Bhushan’s petition alleged that Mr Chidambaram as Finance Minister overruled his officers who favoured the auction of spectrum. Mr Bhushan also said that Mr Chidambaram allowed two companies that were allegedly shown undue favour by Mr Raja, to sell stake to foreign investors at massive profits on the basis of licences that they had got at hefty bargains. The companies – Swan and Unitech Wireless – have said no rules were violated because they did not sell their stake but created additional equity. Swan partnered with UAE-based Etisalat and Unitech with Norwegian company Telenor. The government has said that both companies operated within the parameters of the law in those partnerships.
7) Early this year, the Supreme Court cancelled 122 licences issued by Mr Raja and said that spectrum should have been auctioned instead of being given at no extra cost along with licences. 2G or second generation spectrum will now be auctioned this year on the court’s orders. A Raja spent about a year in jail before being granted bail. ”
The Supreme Court seems to have stated in its Judgement(as reported by Times Now TV to-day), is that the mere fact that there might be some evidence here and there, it is not sufficient, to implicate Chidambaram in the 2G case.
It may be a fact that Chidambaram might have met the DoT officials.
It does not amount to Criminal Conspiracy.
The repeated use of the term,’Criminal Conspiracy’- does it mean that there is conspiracy, though not Conspiratorial in nature?Yes, when a meeting involves a scam, the Finance Minister discussed among other things the 2 G in the passing, thereby Chidambaram , the astute Lawyer that he is has provided himself with an excellent alibi.
I wrote on July 12, 2011 that
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The Finance ministry was aware that there was something amiss in granting of licenses of 2G.
This is proved by the fact that the MoF had written to telecom ministry.
This was not followed up.
When suitable reply has not been received from the Ministry,Chidambaram should have taken it up with the GoM or the PM.
Now we find that there are ‘Non paper Decisions’(new term for unlawful decisions), and that there were no records kept for the meeting of Raja and Chidambaram.
All tis point out to acquiescence if not active participation of Chidambaram.
As I have noted in my earlier blog,is this a quid pro quo for manipulation of last Parliament elections, about which a case is pending.
2G scam runs deep.
It appears to lead towards PMO as well as Sonia Gandhi.
Despite clear indications the media is shy of mentioning either name .
Worse still PM is considered Honest and even called as ‘hands on PM’!
The Honorable judges must be aware of these facts and there were leaks in the Media on the ‘Paperless Discussions’ among Raja,Chidambaram.9 the leaks were from the PMO )
Probably they discussed what they would have for Lunch.
Now the Government has shredded the entire Tapes of Radia.
It is much easier for the Supreme Court to declare there is no evidence of 2 G linking to politicians and the Corporates.
Raja will be laughing heartily, as this opens new doors for him.
Viva la Justice!
“the trail of those who leaked the Niira Radia tapes could have been lost forever had not the Supreme Court decided to keep a copy with itself. The Centre on Thursday informed the Supreme Court that it has destroyed the entire Radia tapes, publication of excerpts from which threw the spotlight on ways of doing business as well as the tendency of security agencies to violate privacy of citizens.
The government said under Rule 419(A) of Indian Telegraph Rules, the intercepting agency was mandated to maintain and safely keep the intercepts for six months and thereafter destroy them if no action was required to be taken on the basis of the contents of the intercepts. The Radia intercepts were destroyed as no action was required to be taken on the tapes.
It is known to all including the media that Sonia Gandhi is deeply involved in 2G and with out her the scam of this magnitude would not have taken place for nothing moves in the Government with out her nod and Manmohan Singh and Chidambaram being her Man Fridays.
It is Subramanian Swamy who is relentlessly pursuing the case and has the Nation stand up and notice.
Swamy has in a speech highlighted the division of spoils among the perpetrators and video of the is provided here.
He has also accused that about Rs.36,000 Crores have been siphoned off to Sonia’s sisters!
Media is conspicuously silent on Sonia.
The only noises that can be heard is in the Cyberspace.
“. Dr Swamy explains that the estimated loss in 2G spectrum scam is 1.76 lakh crore rupees. He is saying that he got information from his contacts from our country and World. He is saying that following was the money distribution. A Raja – 5000 Crore P Chidambaram – 5000 Crore M Karunanidhi – 14000 Crore Sonia Gandhi – 36000 Crore Dr Swamy says the Chidambram got 5000 crore which is just like pocket money for him. He has more than 50000 crore rupees deposited in tax heavens. He is saying that because of corruption many great civilization like egypt, Greece etc. Dr Swamy says that just 500 years back India was considered as most honest country. He says that we have approximately 70Lakh crore black money in tax heavens. He says that if this money comes back in India then all infrastructure projects can be supported, Indians dont need to pay any tax for next 10 years. Dr Swamy explains how Indian stock market is ruined by Black money in the form of “Participatory Notes”. Chidambaram introduced this participatory notes which is not allowed anywhere in the world. Dr Swamy also exposes the Electronic Voting Machine fraud. He says that EVM machines tempered in 2009 election and because of that congress won 90 extra seats by fraud. Dr Swamy says he supports Baba Ramdev and says that even if Media is not covering don’t underestimate him. ”
The Government of India must be either idiotic or criminally inclined when they decided on fixing the allotment of 2 G licences.
They entered the market knowing well that there is a huge market out there and they decided to call for tenders.
This process has been initiated after TRAI‘s observation on the estimated market value of 2 G.
They floated the tender(to know how they fixed the tender read my blog under corruption2G scam origin and Growth)
Concurrently there were discussion about the possibility,nay the probability of the Companies participating in the Tendering process ,selling the licences.((now, Chidambaram and Co call it by different names,mergers, acquisitions).
And they deliberated as to what percentage the government should share out of the proceeds in that event as early as in 2008.
Now the process is long over and the Companies have sold these Licences(let Chidambaram,in his infinite wisdom may call it in any way he likes),the Government has not bothered to fix the percentage of sharing the revenue thus raked in,let alone recover it.
One of the best methods to escape responsibility and prosecution is to deny there is no crime involved.
First the statement that ‘the 2 G loss is notional’
Then ‘tender procedures were followed’
‘Note has been sent’
‘The authority determining the loss,CAG, has exceeded its brief’
My questions.
If the Government knew and was intent in earning why these norms were not implemented till date?
It is evident even to an idiot like me that the Companies have made enormous profit, simply by paying bribe ,get the Licence and sell it at a premium.
Look at the price the companies sold the 2 G licences
“Asked by The Hindu why the Swan and Unitech transactions — in which the two firms offloaded 45% and 60% of their stake to Etisalat and Telenor — were not finally subjected to the government’s share of the premium as had apparently been envisaged in the January 30, 2008 discussions, Mr. Chidambaram said in an emailed reply that these were neither mergers nor acquisitions. “Merger and Acquisition (M&A) policy is relevant when two companies merge with each other (merger) or one company acquires another company (acquisition). In the cases of Swan–Etisalat and Unitech-Telenor, the Indian company issued new shares to the foreign investor. These cases were governed by the FDI policy. I have already clarified that these two cases of FDI fell under the ‘automatic route’ and no permission was required and no permission was given by the Ministry of Finance.”
And how much they have offloaded?
Next to nothing?
( one should note that there was a ‘paperless meeting among Raja,Chidambaram and Manmohan Singh’ in 2008-read my blog on this)
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When is an acquisition not an acquisition? On that question rests the latest twist in the ongoing 2G case, with the Supreme Court’s recent finding on the “offloading” of Swan Telecom and Unitech shares turning the spotlight back on the UPA government for its failure to check what was clearly the veiled purchase of spectrum by Etisalat and Telenor.
Finance Ministry and Department of Telecom documents from January 2008 onwards establish the government was aware that the low 2001 entry fee for 2G licences awarded in 2008 would lead to “speculative” transactions by firms seeking to unlock a huge premium on spectrum.
In a meeting on January 30, 2008 — just 20 days after 122 Letters of Intent were granted to various firms — P. Chidambaram, who was Finance Minister at the time, and A. Raja, then Telecom Minister, discussed “getting part of the valuation for Government as premium for spectrum, to avoid hoarding as well as spectrum trading” in case of mergers and acquisitions (M&As) involving spectrum holders. The meeting, which took place a month ahead of either the grant of licences or allocation of spectrum, was also attended by D. Subbarao and S. Behura, Finance and Telecom Secretaries respectively at the time.
An account of the January 30, 2008 meeting was first provided by Dr. Subbarao, who confirmed the existence and details of a four-page “discussion between the Finance Minister and Minister of Communication” to the CBI during his deposition on March 5, 2011.
The document, a copy of which is with The Hindu, shows that Mr. Chidambaram and Mr. Raja had fully anticipated the possibility that some of the licence holders would engage in transactions which “trade in spectrum” purely for profits, and also acknowledged that “premiums” for spectrum would be generated on account of spectrum held by them.
“In view of large number of operators it is expected that some of these companies might have obtained licenses as ‘speculative’ venture,” the official discussion paper noted. “Hence, some ‘mergers and acquisitions (M&As)’ are likely to take place after some time which de facto, would amount to spectrum trading, as large part of such companies valuation may be on account of spectrum held by them. This spectrum trading is not desirable and needs to be regulated.”
“Beside the general conditions in service license, … the other guidelines for M&As, clear… and detailed ‘Guidelines’ need to be evolved and announced regarding M&As, especially the amount of spectrum which the merged entity would be allowed to retain along with the criteria and other details in this regard, companies valuation by consultants, valuers, appointed by Govt’s approval/consent/concurrence; and then payment of a part of the valuation to the Government as premium for spectrum, etc”. [Emphasis added].
With the Central Bureau of Investigation alleging — and the Supreme Court concurring — that the high prices Etisalat and Telenor paid to acquire stakes in Swan and Unitech were on account of the spectrum held by them, the Finance Ministry’s silence in the face of transactions it appears to have anticipated has fuelled the litigiousness of Mr. Chidambaram’s critics. His alleged role in the 2G matter was examined by the special CBI court which ruled earlier this month that the former Finance Minister could not be treated as a “co-accused.” But both the Centre for Public Interest Litigation and Janata Party leader Subramanian Swamy have cited the go-ahead…Mr. Chidambaram gave for Swan and Unitech in 2008, as well as other decisions he allegedly took on pricing, as grounds for criminal investigation and have taken the matter on appeal to the Supreme Court.
”
Mr. Chidambaram, who is now Union Home Minister, added that Swan and Unitech were not the only companies that issued new shares. “I gather that several telecom companies issued new shares to foreign/Indian investors in the past.” He also noted that the minutes of the January 30, 2008 meeting “simply record that certain aspects ‘need to be studied further’ and one among them was ‘merger and acquisition’.”
Four years on from those discussions in 2008, the government is yet to unveil any policy on how its share from transactions that involve the offloading of shares and spectrum trade is to be secured.
The Competition Act 2002, a statute which specifically deals with M&As, describes ‘acquisition’ unambiguously. In Section 2, it says ‘acquisition’ means “directly or indirectly, acquiring or agreeing to acquire shares, voting rights or assets of any enterprise.” By this definition, at least, the Swan and Unitech transactions would appear to qualify. Not only did Etisalat and Telenor acquire shares in the two telecom companies, but also voting rights proportionate to their holdings. Ironically, Swan and Unitech’s own description of their transactions as well as a government press release of October 31, 2008 admits that “assets” were very much a part of the valuation”
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