Bookmark and Share

Pot Calls Kettle Black as Indian 2G Telecom Scam Accused ADAG Group blames Bear Cartel for Fall in Infra Stocks

0 Comment

Corruption in India is not all pervasive but has also become funny in an ironical sort of way.The Anil Ambani Group which recently settled with Stock Market Regulator SEBI for Insider Trading is now blaming a Stock Market Operator for the recent bear hammering of Infrastructure Stocks.Note the ADAG Group has also featured quite prominently in the 2G Telecom Scandal which is being probed by CBI under direct supervision of the Supreme Court.Note the stocks of ADAG Group companies have bore the brunt of recent market falls.Reliance Infrastructure is one of the most prominent companies of this conglomerate and has dived alongwith a host of capital goods and infrastructure.

ADAG seeks IB probe in share hammering of 23 infra stocks

Anil Ambani-led Reliance Infra has sought an Intelligence Bureau probe into alleged hammering down of 23 infrastructure stocks by a “powerful stock market operator” for personal gains of hundreds of crores of rupees. Seeking a probe and immediate action by the intelligence agency against those behind the ‘bear hammering operation, the company blamed these operators of distorting Indian capital market in general and infrastructure sector in particular.

These operators have been accused of indulging in market manipulations and rumour mongering to destroy the confidence of investors for their own illegal and unjust enrichment.

The company is also believed to have identified the name of the market operator leading this cartel, based on the information from its stock market sources, and has said that he has accumulated huge wealth running into hundreds of crores of rupees in a very short span of time.

Note it would not be surprising if the allegations were true as the Indian stock market is a pump and dump heaven of IPOs with blatant manipulation by market operators.Price Rigging Rings are also present with mid cap and small cap scams happening with an alarming regularity.With Corruption touching a new high,the Supreme Court has taken over the investigation of the Telecom Scam Probe from the Government.This has led the CBI which is mostly a ruling party puppet to question some top billionaires and politicians.However it remains to be seen if some of the top fish are caught or just some small scapegoats are imprisoned.

2G probe reaches Karuna’s doorstep

The tale of the political-corporate nexus in the 2G scandal is fast unravelling as the CBI on Thursday questioned another business tycoon — Essar group head Prashant Ruia. It also braced for interrogation of DMK chief M Karunanidhi’s daughter and Rajya Sabha MP Kanimozhi. Ruia’s questioning came a day after the agency cross-questioned ADAG group chairman Anil Ambani and confronted him with former Telecom Minister A Raja and DB Realty chief Shahid Usman Balwa.According to sources, the CBI has already sent a questionnaire to Kanimozhi in connection with the money trail from Balwa-linked companies to Kalaignar TV, in which she owns a 20 per cent stake.

Meanwhile, Ruia turned up at CBI headquarters at about 4 pm on Thursday and his questioning continued till late in the evening. Ruia was quizzed about the alleged association of Essar with Loop Telecom, which came under the scanner in the CBI case registered in October 2009, according to official sources.

The CBI questioned Loop Telecom CEO Sandip Basu for the third consecutive day on Thursday. Loop’s chief regulatory officer Harish Kapoor was also interrogated by officials of the Anti-Corruption Bureau of the CBI. CBI officials indicated that top functionaries of other beneficiary companies in the spectrum allocation scam would be questioned subsequently.

Meanwhile, sources said the CBI, in its questionnaire, has sought Kanimozhi’s response on her links with a person who acquired Tata Group’s Voltas building. The “dubious” change of ownership of the multi-crore 53,000 square feet premises in Chennai is seen a bribe paid to DMK for favours granted to the Tatas by Raja.

Voltas had leased the land for 30 years in 1975. In April 2009, 17 people who jointly owned the property gave power of attorney to one Saravanan, who is reported to be a close aide of Kanimozhi and her mother Rajathi Ammal. Saravanan later sold the Voltas-held property to Shangkalpam Industries Pvt Ltd in Niligiri (A Raja’s constituency) for Rs 25 crore, much below the market price, which is estimated to be around Rs 200 crore. Shangkalpam Industries, which now owns the property, is run by Shanmughanathan Vellanthurai, 45, a Malaysian auditor and businessman. He is also director of Shan & Co, an audit firm which has close links with Raja and Ratnam, who is Rajathi’s auditor.

The CBI will question Kalaignar TV CEO Sharadkumar, who owns 20 per cent in the firm. The channel reportedly received `214 crore from a Balwa-linked company. It is learnt that the CBI is not going to question Karunanidhi’s second wife Dayalu Ammal, who has 60 per cent stake. Dayalu is mother of Deputy Chief Minister MK Stalin and Union Fertiliser Minister MK Alagiri.


Abhishek Shah

No Responses so far | Have Your Say!