Spectrum Raja, a poor Dalit’s House.
Forward I have Received.
If not authentic, it may be denied.
Tag: Corruption
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2G scam-How was the kickback paid?
In a Blog filed under Corruption/India I have filed a story stating that Sadiq Pasha was used as conduit for Karunanidhi in funneling kickbacks.
These kickbacks route and modus operandi was finalised in Dubai.
Another factor is Balwa, whose company was a front for an Industrial house.
Swann telecom sank without a trace and DB Realty seems to funneled funds through Realty dynamics, through Kuso to Cineyug and then to Kalaignar.
Anil Ambani was interrogated by CBI.
Radiaa, on behalf of Tata, threatens Raja not to allow Ambani higher bands.( see my blog on this-Courts/ Govt. can not decide policy )
Kalaignar TV states that the loan was advanced to them and that they have returned it.
The question is ,why should a Company from Mumbai advance to a TV Company In Chennai?
The company that advanced the amount, is not into Financing.
Secondly, with out security why was such an amount paid?
If Kalaignar TV wanted funds(which I doubt for Karunanidhi floated the TV in a jiffy without any financial problem), they could have raised it from Financial Institutions.
If banks were not prepared to advance, on what basis such a huge amount was loaned to Kalaignar TV?
Had the scam not brioken out , in a couple of years Kalaignar TV would have settled the account with Cineyug by paying a nominal amount and stating that they have no funds and filed tax returns and legalized the transaction.
And look at the fund flow.
DB>Realty Dynamics>Cineyug> Kalaignar TV.
Each Company seems to have been advanced the X amount to to be transferred to the beneficiary(Kalaignar TV), plus their service charges(?).
Now additional trail from India Today.
How was the kickback in the 2G spectrum scam actually paid? Documents with HEADLINES TODAY show that the payback was in the form of equity in the companies which bagged the lucrative 2G spectrum licences at a throwaway price. India’s audit watchdog, the Comptroller and Auditor General (CAG) had indicted Swan Telecom, among others, for having sold significant stakes in their companies at high premium within a short period of time after acquiring the licence.
HEADLINES TODAY is in exclusive possession of documents that show that Swan Telecom had brought in an equity partner in the form of a company, which had a close associate of DMK supremo M. Karunanidhi and tainted former telecom minister A. Raja on board.
The documents show that Swan Telecom had written to DoT in November 2008, bringing on board a company called Genex Exim Ventures. Swan said that it had entered into a share subscription agreement (SSA) with Genex Exim on September 23, 2008.
Interestingly, the man on the board of Genex Exim, Ahmed Salahuddin is the younger son of Ahmed Syed Salahuddin, a close associate of Karunanidhi.
The elder Salahuddin has been close to the DMK for around 40 years.
According to the SSA, UAE telecom company Etisalat agreed to subscribe up to 45 per cent in the increased equity of Swan Telecom and invest around Rs 3,217 crore into the company.
Significantly, a company called Genex Exim Ventures Pvt Limited was also shown as having agreed to invest around Rs 380 crore into the company.
Genex Exim came into existence just six days before entering into the SSA with Swan. Interestingly, Genex Exim later sold its 5.27 per cent holding to Etisalat Mauritius for Rs 380 crore to make a handsome profit for all on a share capital of just Rs 1 lakh.
According to documents with HEADLINES TODAY Genex Impex was flush with cash to the extent of Rs 380 crore soon after its birth. The source of the cash is not known. This cash was later deployed in buying equity in Swan Telecom – equity which was subsequently sold to Etisalat for a profit of Rs 380 crore!
When the first application was filed to form Genex Exim, the Salahuddins did not seem to have anything to do with the company. It was only on December 17, 2008, that Ahmed Salahuddin came on board as managing director (MD).
Interestingly, there was nothing in Genex Exim’s memorandum of association to show that it was going to enter the telecom sector. It was a company which claimed would be engaged in the business of imports and exports of all kinds of merchandise including iron ore.
Related:
Apart from the fact that the money has been laundered, there are security implications as well.
Etisalat, a UAE Company has been, indirectly initially, directly later,allotted sensitive telecommunication sector, by way of licence.
Again as Subramanian Swamy has stated ther is a link between Etisalat,Pakistan’s ISI and Dawood Ibrahim.
Swann telecom sold the licence to Etisalat shortly after being allotted the licence at whooping price.
Swann Telecom is reported to be a front company of a leading Business house in India.
Now Karunanidhi is implicated in all these transactions through intermediaries.
http://ramanisblog.in/2011/02/04/dmk-chief-family-laundered-money-compromised-national-security/
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Advani Apology, Rajiv 2.5 Billion-Why?
It is alright for Advani for to level charges and apologize at his pleasure.
In that case,- Did Advani have facts to level charges Against Sonia Gandhi ?
- Or did he make an irresponsible allegation?
- What new evidence has come to light to tender apology?
- Is it because Sonia declared she has no accounts?
- Will he share the details with the People of India?
- Advani is a responsible politician, who was considered to be the PM in waiting.
- Will he stand up and explain?
- What is the stand of BJP‘s Task force?
I have blogged on the subject of Rajiv Gandhi‘s 2.5 Billion Francs ,which was based on the November 1991 issue of Schweizer Illustrierte, the most popular magazine of Switzerland, carried an expose of 14 politicians from developing nations who had stashed their bribes in Swiss banks , Subramanian Swamy‘s s statement , India Today‘s Story http://indiatoday.intoday.in/site/Story/123602/UP%20Front/dacoits+have+looted+india.htThe story was linked to Schweizer Illustrierte dated November 1991 andS Gurumurthy in Indian Express: http://expressbuzz.com/biography/zero-tolerance-secret-billions/236261.html.Also Ram Jethmalani’s piece in India Today.On February 2, 2011,Schweizer Illustrierte sent me a comment as follows.I again checked the link.The information in German seems to confirm the information on Rajiv Gandhi.May be I got my translation wrong.If some one can confirm that the information on Rajiv Gandhi is wrong as per the magazine’s published Record,I hereby tender a Public Apology to Sonia Gandhi,Rajiv Gandhi and Family.I have a few questions.Why did the magazine take 10 years to deny?Why did not Sonia Gandhi keep quiet this long?What is the stand of India Today, Subramanian Swamy , S.Gurumurthy and the Indian Express?Also note that the magazine , in its communication, has not denied it out right.It says ‘as we think you might have cited it wrong’Typical statement which while not confirming also does not categorically deny it.If Schweizer Illustrierte’s article is wrong ,has Sonia Gandhi received an apology from them?Questions, questions every where , not an answer to blink.Magazines communication to me.‘Submitted on 2011/02/02 at 7:40 pmDear Blogger, you’ll find the mentioned Schweizer Illustrierte article (Page 41) on this URL:
http://www.schweizer-illustrierte.ch/zeitschrift/500-millionen-der-schweiz-imeldas-faule-tricks
Please examine the content carefully, as we think you might have cited it wrong.
Regards
Schweizer Illustrierte’Story.
Senior BJP leader L.K. Advani has apologised to Congress President Sonia Gandhi for a party—appointed task force report, which had alleged that she and her late husband Rajiv had accounts in Swiss banks.
BJP had appointed the task force on unravelling the amount of black money stashed by Indians in foreign banks and ways to bring it back.
The report had alleged that Sonia Gandhi and former Prime Minister Rajiv Gandhi were among Indians who held Swiss bank accounts.
This had led Ms. Gandhi to write a letter to Mr. Advani denying the allegation.
Sources said in the letter, Ms. Gandhi had said that neither she nor her husband held Swiss bank accounts.
In his reply to the Congress President’s letter, Mr. Advani expressed regret of her name and that of her late husband being mentioned in the task force report.
However, Mr. Advani also stated in his reply that the Gandhis should have denied this publicly when there were murmurs that names of her family members could figure in the report.
http://www.thehindu.com/news/national/article1467851.ece
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Tax Havens- All about laundering Black Money.
Politicians form a class of their own.
Through out the world they are united in stashing laundering money along with crooked businessmen.
Unless ordinary Joe revolts this can not be stopped.
Tax Haven, Investment Haven, Asset Protection Haven. What does it mean? Exactly what is meant by the term ‘tax haven’? A Tax Haven is geographical area (nation, city, state, or zone, usually known by the term, “jurisdiction“) that levies a lower rate of taxation than average when compared to other nations and jurisdictions. Some jurisdictions levy no taxes at all, and most levy no tax on ‘foreign earned income’, meaning income that is earned outside of their jurisdiction. To attain privacy [anonymity] as well as to attain a local ‘presence’ the most common practice is to use a paper interface by creating a corporation or IBC (International Business Corporation) in that jurisdiction. By forming a corporation in such a jurisdiction, we become liable to pay that jurisdiction the taxes levied against that corporation on profits earned by the corporation. If there are no taxes levied, then we operate our company at a distinct advantage to companies who must pay 30% – 40% rates of taxation. Many individuals also move a large portion of their existing assets to a tax haven jurisdiction. It should go without saying that in setting up offshore it is essential to do things correctly. There are qualified offshore advisors which can provide legally correct financial structures for those thinking of moving offshore. Once our business and/or our assets are offshore, they can be so structured as to take good advantage of beneficial tax savings. They can also enjoy a greater degree of protection from monetary predators. Anonymity is an important attribute of being offshore; not all jurisdiction provide total protection to their clients anonymity. Here are the rough overall criteria which more or less describe the basic advantages of a tax haven: - Some existing level of freedom from taxation
- Banking, Corporation, & Transaction secrecy laws that protect both privacy and assets.
- An absence of exchange controls and other governmental handicaps to doing business
The No-tax Tax Haven Tax Havens fall into different categories. The simplest being the No-tax tax haven. A no-tax tax haven is a country (or jurisdiction) that has no income, capital gain, or wealth taxes of any sort and in which there are facilities and legislation under which we can incorporate and/or form corporations, foundations, and trusts. This type of tax haven is a pure tax haven. The countries that fulfill this definition include; Anguilla, the Bahamas, Bahrain, Bermuda, the Cayman Islands, Cook Islands, Djibouti, Turks and Caicos, Vanuatu and perhaps a few more which we will discuss in subsequent articles. The governments of these countries most usually earn their revenue by charging fees on: documents of incorporation, the value of corporation shares, registration fees, and so forth. We can operate a business from one of these countries without any income taxes on the money earned by our corporation; or by investments made into the stock market, banks, or the holding of income producing assets such as real estate or precious metals. There are some special considerations which must be observed, but for all intents and purposes the money we earn using a no-tax tax haven as our business base are tax-free. It is not necessary to live in one of these jurisdictions to make use of their beneficial tax structure. It is possible to live in one jurisdiction and have one’s corporate structure in another. In fact it may be preferable to separate corporate jurisdiction, business jurisdiction and resident jurisdiction. A fuller explanation of this will be explained in a subsequent article. In the use of more than one jurisdiction it is probably prudent to maintain an office presence in a jurisdiction where one does not earn an income.
Foreign Source Income Is Tax Free
The No-tax-on-foreign-source-income Tax Havens Next, in degree of taxation levied, we have the No-tax-on-foreign-income tax-havens. These countries (jurisdictions) do impose income taxes, both on individuals and corporations, but only on locally derived income. The countries that fulfill that definition include; Hong Kong, Liberia, Panama, Philippines, Venezuela, Shannon International Airport, Jersey, Belize, Guernsey, Isle of Man, Gibraltar, and a few others whose rules and regulations regarding income will be discussed in subsequent articles. The Low Taxation Tax Havens Some countries establish fixed rates of taxation. These countries are called Low taxation tax-havens. They generally tax a small amount on corporate income and have double-taxation agreements with many high-tax countries that when taken in combination and structured correctly work to reduce the overall degree of taxation. This is best for individuals who are not going to become permanent expatriates, but may some day want to return to their home country. The countries which more or less fulfill the Low Tax definition are Cyprus, the British Virgin Islands, Liechtenstein, Oman, Switzerland, Jersey, Guernsey, and other countries which we will be discussing in subsequent articles. Other Categories Then there are the special incentive privileges to off-shore companies and qualified holding companies that are given by tax havens such as Luxembourg, the Netherlands, the Netherlands Antilles, and Singapore. Plus the international business company tax reductions given by Antigua, Barbados, Grenada, Belize and Jamaica. Which Tax Haven Is Right For You? Count Your Cards While the categories of Tax Havens give us a general indication of their types of taxation, the level of taxation is not a pure indication of their worth to us. Panama has become one of the more popular Tax Havens because of its ease of entry, its use of the US Dollar, and its excellent banking system. However for the most part one cannot hold any currency in a Panamanian bank other than the US Dollar. There is one bank that does allow EURO accounts but they are not sophisticated in the handling of EURO accounts. One cannot hold gold or other precious metals in a Panamanian bank. Banking secrecy is said to be guaranteed by the government of Panama, however there is also a guarantee that one cannot be extradited from Panama yet several people have recently been extradited from Panama under circumstances that were less than forthright. Big Brother Is Watching You While Panama still remains the haven of choice for the average person seeking to move offshore be aware that anyone using a US passport to open a bank account in Panama will have that fact reported to the US government. This has become true in many jurisdictions, and some jurisdictions will now no longer accept clients who hold US passports. The US government is placing a great deal of pressure on offshore jurisdictions, and offshore banks that have correspondent banks inside the USA must comply with US government requirements or face the consequences. There are still some nations that only require a residency card to open an account, and if one has residency in those nations one can open an account and maintain anonymity. Real Estate / Second Passports The purchase of offshore real estate remains the best placement for funds we wish to expatriate. However most of us cannot put all of our money into real estate, nor do we wish to. There are a number of shell game paper interface tricks that are used to hide the true owner of an IBC or Foundation, but the day of judgment arrives when we have to open a bank account, because as the signer on that account we have to present our passport. The only solution in these matters is to get a second passport. Fake Passports vs Real Passports We know of two South American nations where one can get an under the table passport. These passports are registered in the system, one can travel on them and for all intents and purposes they are real passports. Your best hope with one of these passports is that you end up in a US prison and not a South American prison, because prison conditions in South America are horrendous. Our advice; don’t even think of using a fake passport; life isn’t a James Bond movie, and you aren’t Double O Seven. The Dominica Passport is only $75,000 – if that fee is too much for you than go ahead and open an offshore bank account with your US passport because you don’t have enough money to set off any alarm bells in any case. Help! Where Can I Stash My Assets? Recommendations If you are not sophisticated in the world of offshore, and you feel like the fincancial crisis is about to collapse your finances we would recommend the Sovereign Society, which is a worldwide group of investment & privacy advisors that teamed up to provide safe advice about moving offshore, choosing the safest tax havens, best banks, and the most secure devices in which to protect your assets. They have years of experience and a very good track record. We have some articles written by Sovereign Society members Move Overseas You only face consequence if you live in the USA, if you are moving offshore your concerns shouldn’t be too great. The US government is not going to expend the time and effort to track down everyone moving abroad because millions are doing so and most of their assets are not repatriable. How are they going to confiscate your ranch in Argentina and move it back to the US? Bank in Austria Banking in Austria is considered safe for US passport holders, but they won’t take clients living in the USA. If you are a US passport holder living outside the USA an Austrian bank would be a preferred place to put your assets. Read our report on how to bank in Austria Quick Residency Two nations that are quick to provide residency are Belize and the Dominican Republic; in the Dominican Republic one can open a bank account with a residency card. John Schroder has a program in the Dominican Republic; contact him about obtaining residency in the Dominican Republic – Offshore Service Providers Offshore service providers can find solutions. We are building up a list of offshore service providers whose services we can ascertain to be honest and reliable. Until we have that list in place please be circumspect in dealing with offshore service providers. Mention what you have read on this page, if they say that yes, that is true, however I can find solutions to these problems, then proceed with caution. If, on the other hand they say that what is written here is hyperbole, totally false, and that we don’t know what we’re talking about, then head for the door and find another offshore service provider. The defining characteristic of offshore investing is that much of it is uncontrolled, or loosely controlled by any government regulations. While that is its positive characteristic, it also why it is a sector full of crooks and flimflam artists. Caveat Emptor. Please proceed with caution. Offshore Banks We have a list of offshore banks. In most cases an offshore service provider is not required to open a bank account. Seek out a bank and make an inquiry. Find out their policy and ask about opening an account. If you wish to make investments via the bank you will have to ask if they provide investment services, do they hold precious metals, can you hold deposits in multiple currencies. If you are a US passport holder be sure to ask what their policy is for US passport holders. If you reside in the USA keep in mind that the US government monitors all mail leaving the United States addressed to certain jurisdictions. Using A Tax Haven By opening a corporation in an offshore jurisdiction, the businessman and/or investor can recognize substantial tax savings as well as protection from frivolous lawsuit. The structuring of such a program must be done correctly. Opening an offshore corporation is not difficult. In some cases it may be necessary to have an offshore office so that the offshore presence is actual rather than purely virtual, in other cases it is not necessary; this depends on the nature of the enterprise. If we want to protect our savings and keep our assets in an offshore bank then an office is not necessary, if we are running a business we may want to have an office in that jurisdiction, either in the form of actual office, or as a virtual office where we receive mail, fax, and have an answering service for phone calls. Today with Skype and other VoIP telephones it is easy to establish a virtual phone number in any number of jurisdiction which ring in other jurisdictions. Creating A Virtual Presence We can now have a US dial tone almost anywhere in the world …and call to anywhere in the world – in many cases toll free – Those of us who have lived overseas for decades have been witness to an amazing evolution in the ability to make international telephone calls. In 
the book version of Escape From America, a telephone system called Call Back was recommended; which at that time was a state of the art modality in the ability to make international phone calls. Most people had never heard of it. Today Call Back is old hat. Every few years the technology of what is called ‘telephony’ (teh-LEH-fuh-nee) makes even greater strides. Today we have OOMA, Vonage, Skype, and a dozen other stystems each of which use VoIP, (Voice-over-Internet protocol) a protocol optimized for the transmission of voice through the Internet or other packet-switched networks. There is a reason why each of the three systems mentioned are excellent services and which is superior depends very much on what it is we intend to use our overseas telephone for. As of this writing OOMA is the latest, and perhaps the greatest; it gives us a US telephone number that provides free calling to any US number, and low cost international calls. However OOMA doesn’t give you a virtual telephone number in London, or in other parts of the world, Vonage does. With Skype you get can get up to ten numbers in a very wide choice of jurisdictions. Note, for the purposes of this article, that a Skype number can be forwarded into another phone. Skype is great on a laptop, especially now that you can hook in a USB port telephone and carry it with you when you travel. The hardware is where the innovations have occurred. We have made a list of the phones that we recommend. Click here to see them all – each of the phones listed explains its features and its cost. If your desire is to create a virtual presence in a jurisdiction or to achieve anonymity this is the best way to do so. There is also a way to forward a phone number located in any jurisdiction into a VoIP number by using PBX software which we will be discussing in a subsequent article. Also note that if you intend to live overseas you will want one of these phones if for that reason alone.You Can’t Bug Me Note: We have been told that VoIP phones are extremely difficult to bug. This, we are told, is because they use a digital signal and it is difficult to read, much as a fax line is difficult to read. Such signals can be read by someone intent on bugging a phone, but only with great difficulty and at great expense. Due to the proliferation of VoIP phones in use the chances of a VoIP phone being bugged are extremly remote. http://www.escapeartist.com/Special_Reports/What_Is_A_Tax_Haven/
Related:
Many large U.S. companies use offshore subsidiaries and creative tax planning to lower their tax rates at the expense of the rest of us. As taxpayers and legislators wring their hands over missing budget funds, it is eye-popping to see where much of the money has gone.
The list of players using offshore tax havens to shift profits overseas reads like a Who’s Who among big businesses and banks. For starters, there’s Google, which has paid a tax rate of 2.4 percent since 2007 on its profits. Then there’s Goldman Sachs, which in the same year received a $10 billion taxpayer bailout and paid just a 1 percent effective tax rate on their profits. The “Big Four” audit firms, such as Ernst & Young, not only advise clients on tax haven strategies, but use them to also ship their own profits overseas. Most recent exposés give a frightening peek into the aggressive tax maneuvering of companies such as General Electric, Carnival, Boeing, Yahoo and Southwest Airlines. Official estimates by the federal GAOshow at least 83 percent of the largest 100 companies have created offshore subsidiaries in places like the Cayman Islands that are officially listed as tax havens.
Offshore tax havens cost the Treasury over $100 billion per year. It’s the equivalent of a massive annual bailout for America’s largest, and often times, least scrupulous corporations. We should never have tolerated it and can no longer afford it.
Rampant tax avoidance by corporations is not even good for business. Capitalism works best when companies thrive based on their efficiency and capacity to innovate; not based on the number and aggressiveness of their tax lawyers.
Curiously, some of the most vocal defenders of tax havens seem to forget about the lost revenue while issuing strong warnings about the size of our deficit. For instance, John Castellani, president of the Roundtable, a vocal critic of large deficits calls closing tax haven loopholes, “the wrong idea at the wrong time for the wrong reasons.” For those who oppose reform, the shifting of tax burdens onto already struggling taxpayers and small businesses doesn’t even seem to deserve a shoulder shrug.
http://www.huffingtonpost.com/phineas-baxandall/iin-the-public-interesti_b_823717.html
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‘I am helpless,Manmohan Singh’ on 2 G scam.
Image via Wikipedia Did the FM,being an Economist, not know that the Spectrum band will fetch more if auctioned?
Why did not he check with TRAI on the statement of Raja on its recommendations?
Or was he also unaware that TRAI has that function?
Did he not deem it fit to question Raja why Spectrum has to be kept out of the Cabinet or GOM?
Says he is helpless in a coalition politics.
He should have come out with this statement that DMK is compelling him to accept their nominee, specifically Raja, then and there.
Now he can not say he knew something might be wrong and he was helpless.
Abetting Crime is more serious than executing it.
Story:
At a roundtable with television editors in his home on Wednesday morning, Prime Minister Manmohan Singh said there were complaints “from all sides” about the way former Telecom Minister A Raja had distributed 2G spectrum but he was “not in a position” to make up his mind if anything was seriously wrong.
Singh said he had made his concerns clear to A Raja on 2G spectrum allocation but was assured by Raja — “on the same day” — that he was doing nothing wrong and that his methods were “absolutely transparent”.
Singh also said though he had conveyed his unease to Raja about 2G, he did not press further for auction after the Ministries of Telecom and Finance agreed to go by the prevailing system of first-come first-served.
The Prime Minister’s meet comes amid increasing clamour that he speak on the scams that have rocked the second term of the UPA government.
The Prime Minister assured the country that his government was “dead serious” in bringing to book all wrongdoers “regardless of their positions” in the 2G spectrum, CWG, ISRO and Adarsh scams.
Singh defended himself on Wednesday against accusations his government was a lameduck, saying it was trying to bring justice in some of the country’s biggest corruption scandals in decades.
“Whatever some people may say, that we are a lame duck government, that I am a lame duck Prime Minister, we take our job very seriously. We are here to govern, and to govern effectively. Tackle the problems as they arise and get this country moving forward,” he said.
Still on 2G, Singh said the issue of licences were never brought before him or the Cabinet.
The Prime Minister asserted that he was “not afraid of appearing before any committee, including a JPC”. “I will be quite happy to appear before any committee,” he said.
“I have never felt like resigning. I have a job to do. I never thought of giving up half-way,” he added.
Singh admitted there are certain compulsions in coalition politics, “compromises have to be made”, but also assured that the coalition was strong and there was “no danger of inner tension leading to a break-up”. “Our allies are with us whole-heartedly,” he said.
Singh also said the UPA government was in talks with the Opposition to break the logjam in Parliament over 2G. “Parliament should be allowed to function,” he said.
Allegations the government may have lost up to $39 billion in revenues after firms were awarded telecoms deals at rock-bottom prices in return for kickbacks have rocked the ruling coalition and compounded India’s fragile investment climate.
The 78-year-old Singh has been under increasing pressure to stamp out on corruption and his decision-making appears to have been paralysed in his second term despite winning re-election with an increased majority.
The scandals have taken a heavy toll on Singh, concerned his legacy is transforming from one of being the founders of India’s economic boom to someone who did nothing to stop corruption or policy paralysis.
Singh may have hoped the current scandals would ebb. But an aggressive media, an assertive Supreme Court and an opposition tasting political blood have seen momentum into the corruption probes grow.
http://www.indianexpress.com/news/am-not-lame-duck-dead-serious-on-punishing-wrongdoers-pm/750794/
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