Kottayam, Sep 20 (IANS) Kerala Congress President Mullapally Ramachandran on Friday gave a veiled warning to Chief Minister Pinarayi Vijayan, saying he would soon be eating "government food" as the Supreme Court is going to take up a case in which he will be arraigned as an accused.
Ramachandran said this to the media here after Vijayan's remarks against former state Public Works Department Minister and senior opposition legislator of the Indian Union Muslim league V.K. Ebrahim Kunju, who could be arrested shortly in the Palarivattom flyover case in which already four officials are behind bars.
"It's not Kunju who is going to have government food, instead, it would be Vijayan who would be having that and it would be known very soon," said Ramachandran.
During the Pala Assembly by-election campaign, Vijayan, without naming Kunju, said if that man doesn't behave, he will soon be eating government food (food served in prison) and the Left government will show no mercy to anyone, irrespective of who they are, if they are found to be corrupt.
The Supreme Court has listed the SNC Lavalin case for final hearing on October 1. The Central Bureau of Investigation (CBI) wants Vijayan to face trial in the case.
The case pertains to an agreement with Canadian firm SNC Lavalin in 1997 for the renovation and modernisation of Pallivasal, Sengulam and Panniar hydroelectric projects in Idukki district, which allegedly caused a loss of Rs 266 crore to the exchequer. It was inked when Vijayan was the state electricity minister.
Leader of Opposition and senior Congress leader Ramesh Chennithala said that everyone knows Vijayan's role in the case.
"He needn't threaten anyone as everyone knows his role in the Lavalin case and it's he who speaks of corruption. We are the least perturbed by his threats and very soon, we will all know about the Lavalin case," he said.
Meanwhile, former Chief Minister Oommen Chandy, under whose tenure the Palarivattom flyover was built, told the media that they are the least worried by any probe which is currently on in the flyover case.
"At times the cabinet makes realistic and practical decisions. We are prepared to face anything in the case," he said.
Built at a cost of Rs 42 crore, the 750-metre flyover was supposed to serve for over 100 years. It was opened in October 2016 and within three years the flyover started crumbling and was shut for traffic.
Earlier this week, Vijayan announced that the flyover is going to be knocked down, with Metroman E.Sreedharan entrusted with building a new one.
New Delhi, Oct 19 (IANS) Asset stripping is something that Indian promoters have perfected into an art form. For years, the Singh Bros - Malvinder Mohan Singh (MMS) and Shivinder Mohan Singh (SMS) have got away with the proverbial blue murder and finally their luck ran out with their recent arrest. The width and depth of the architecture of their fraud is gargantuan. The FIR against the duo along with erstwhile CEO Sunil Godhwani provides details of the modus operandi of the systematic asset stripping. Moreover, it once again throws into stark relief the fact that regulatory oversight failed and the company which saw an inspection as far back as 2010 managed to operate under the radar, continuing with innumerable irregularities without any fear.
Internal inquiries showed that the poor financial condition of Religare Finvest was, to a large extent, on account of wilful defaults of significant unsecured loans, defined for internal purposes as the Corporate Law Book by borrower entities, either related, controlled or associated with the promoters, all of whom had been provided the loans by Religare Finvest on a non arm's length basis, in violation of corporate governance norms and in contravention of policies and prudential behaviour expected of a NBFC registered with the RBI.
Red flags emerged but were disregarded as always. The construct of the scam is listed out in minutiae. In its inspection report of January 6, 2012 for the financial year ending March 2010, the RBI observed that Religare Finvest had a practice of parking a major chunk of surplus funds with fellow subsidiary/group companies/ other companies which were often used for taking positions in securities. This effectively means that punting or speculation was done with these surplus funds in contravention of all corporate governance norms.
The RBI, in its inspection report, further observed that appraisal, sanction, purpose of loans, disbursal report, periodic review, application from the borrowers requesting for limit enhancement, appraisal/rationale for limit enhancement and monitoring of such loans was not available on record.
It appears that over a period of 10 years, 115 entities were funded through this mechanism of the Corporate Loan Book with the total amount of Rs 47,968 crore. The exposure under the CLB peaked at approximately Rs 3,538 crore on March 20, 2012. To dodge the RBI bullet which had highlighted this as a risk area, the exposure around the time of the quarterly review reporting was managed but the disbursements were mischievously re-instated soon after. By doing this, they concealed material facts from RBI and public shareholders.
This way, Singh Brothers, in conspiracy with Sunil Godhwani, being in control of Religare Finvest, caused it to give unsecured, high value purported loans to shell companies and related entities of MMS and SMS. The quantum of these loans at the time of filing the FIR stands at Rs 2,397 crore as principal and Rs 415 crore as interest.
It is evident from the conduct of these entities that they never intended to repay these loans to RFL and defaulted on their obligations simultaneously with MMS and SMS's exit from Religare Enterprises. Clearly the CLB was used as a mechanism to fund promoter related companies. The funds were never paid back and actually whenever any payment was due in these loans, either the loans were renewed for further tenure or were replaced by loans to some other group companies to repay the loan of existing promoter group company - a circular movement of funds.
N.K. Ghoshal, a longtime stockbroker of the two brothers, was the principal, who through 19 of his companies - which have all defaulted since, moved all the money around.