Globalization It has been said time and again how Globalization has led to increasing prosperity around the globe with free movement of capital and trade. But what has been not been emphasized enough is that how the easy movement of capital has exacerbated loot and plunder on a global scale. Tinpot dictators and cronies have […]
India’s Supreme Court took over the investigation of vast amoutnof black money stashed in foreign money accounts from the compromised government.The ruling Congress party has proven to be remarkably reluctant to take action against corruption and black money despite huge pressure from the civil society and the judiciary.The government itself has ministers who are highly corrupt with a telecom minister in jail and the textile minister who may be on the way as well.Other ministers like the Agricultural Minister Pawar has repeatedly surfaced in numerous scams rocking the country.The Supreme Court has also taken the government to task for granting a retail banking license to the Swiss giant bank UBS.Note UBS had not been given a license as it was under suspicion for facilitating the movement of ill gotten money into Swiss bank accounts
Switzerland is one of the richest,most developed countries in the world hosting one of the biggest financial centre in the world and home to two of the largest banks UBS and Credit Suisse.Switzerland has been long been regarded as a neutral safe haven for money with the its currency Swiss Franc thought to be a risk averse store of value.Switzerland is known for its excellent banks which provide a high quality of service and safety.But the less publicized fact is why this small mountainous country attracts trillions of dollars in wealth from around the world.Its because of its secrecy laws which don’t allow the name of the bank account holder to be revealed unless its proven that it is due to criminal misconduct.This Law has made Switzerland the safe haven for all kinds of criminal wealth including drugs,guns,prostitution,genocide etc.The recent spat between USA and Switzerland over the revealing of US tax evaders brought this anomaly into the open.Switzerland is the only large country to have such a law which promotes crime and tax evasion globally.
Indian Real Estate Companies have the worst reputation amongst the different sectors in India.Corruption,Irregularities,Creative Accounting,Defrauding Consumers,Tax Raids are common to these companies.In fact the financial statements of the Realty Sector are considered so untrustworthy that some Fund Mangers are loath to invest in the whole sector.Despite a Stock Market Bull Run,a line of Realty Companies have not still managed to raise money from the primary markets because of the distrust with which the general public regards them.A Truly Dubious Achievement for the Real Estate Sector in India.Note both small developers and big developers have been involved in scams and shenanigans.2 Real Estate Companies in the National Capital Region Oreo and Emaar MGF,two of the better known Realty Companies have come under the focus of Indian Investigative agencies.Emaar MGF has been trying to do an IPO for a long time without success.Now it has come under the scanner for irregularities for construction of the Commonwealth Games Village.
The Developers as usual are being brazen about it denying any wrongdoing despite tons of cash and incriminating documents being found.These Raids never result in convictions or prison terms and in India are generally politically motivated.Most of the Government officials are a part of the gravy train and would not touch connected Real Estate Developers without a push from their political masters.Expect these Developers to start their business as usual in a couple of months as India’s Political and Business Elite toys with the country’s laws with impunity.
The Indian Market has seen a slew of junk Initial Public Offerings (IPOs) which have led to large losses for investors.The fundamentals of these companies are quite abysmal with characteristics like debt defaults (Nitesh Estates),losses (Tarapur Transformers) and opaque business model ( Jaypee Infrastructure).Most of these IPOs have bombed while some have been pumped and […]