Thursday, November 12, 2009

This is India?..........

Koda man put Rs 640cr, all in cash, in Mumbai bank

Pradeep Thakur, TNN 12 November 2009, 02:45am IST

NEW DELHI: This seems to be the biggest slip by an Indian financial institution which is supposed to maintain heightened vigilance on suspicious and high-value cash transactions. At least Rs 640 crore was deposited in cash by one of the alleged front companies of former Jharkhand CM Madhu Koda in a state-owned bank in Mumbai. The bank failed to trigger an alert to countless intelligence agencies tasked to keep a tabIncome Tax officials investigating the case have found documentary evidence of how the huge cash transactions took place in Mumbai between 2006 and 2008 when Koda was at the helm of affairs in Jharkhand. Koda's alleged frontman Manoj Punamia deposited Rs 640 crore in cash in Union Bank of India at its Zaveri Bazar branch between November 2006 and December 2008. The cash transactions were carried out by a Balaji group company -- Balaji Universal Trade. The same group operated by Punamia was earlier found to be behind hawala and legal money transfers to the tune of $110 million to other front companies of the cartel based in Dubai. Sources said Enforcement Directorate (ED) had also found details of the cartel's land investment in Bangkok worth Rs 100 crore. The agency is examining an accused Vikas Sinha at their Delhi office while Punamia is being questioned jointly by I-T and ED officials in Mumbai. Strange details have emerged during the cross-examination of accused and verification of documents seized during raids. Balaji Universal Trade, that had made huge cash deposits, is believed to have made Rs 991 crore of transactions with Union Bank alone. Sleuths are yet to open many sealed almirahs and lockers that are likely to throw more surprises. Suspicious transactions going unnoticed have unnerved the government which, for the first time, has realised that the anti-money laundering mechanism it had set up in the wake of global pressure post-9/11 has failed to give results. As part of 'know your customer' guidelines issued by RBI, it is mandatory for all banks and financial institutions to monitor transactions of high-risk individuals and their intermediaries on a day-to-day basis and report all suspicious transactions to the Financial Intelligence Unit (FIU), under Union finance ministry, within seven days of getting such information or be liable for punitive action. It's surprising that the Mumbai bank failed to generate an alert when such huge transactions were being carried out by a relatively unknown firm, especially when the bank is believed to have appointed a principal officer located at its head office who is responsible for monitoring and reporting all suspicious transactions to FIU, apart from maintaining close liaison with enforcement agencies. All high-risk accounts have to be subjected to intensified monitoring with periodical review of their risk categorisation in the fight against money laundering and combating financing of terrorism. As per the RBI directive, banks should verify the identify of the person and seek information about the sources of funds before accepting a suspicious customer or a concern. The decision to open an account of such entity should be taken at a senior level and such accounts should be subjected to enhanced monitoring on an ongoing basis.

My Comments:

Rs 640 cr deposited in CASH ?That is huge huge amt by any standard.How Madhu Koda was able to gather this much in Cash?How much bribe he has taken to sell the Mines in Jharkhand?And when we see Rs 640 cr as bribe as there can be no other source to get Rs 640 in 2 years,he do not owe any business where he can say that he got that much profit nor any business will fetch this much big Net Profit in 2 years, Rs 640 cr.....that is just unbelievable...... Now if we just try to analyse and think that if Madhu Koda has taken this Rs 640 cr or Rs.991 cr as bribe for allocating the Mines in Jharkhand or any project given to Co then what will be the profit from all those allocation he made to entity or person?Can anyone imagine?If the bribe portion is Rs 991 cr and much much more , as he is also having Mines in Liberia and Land in Bangkok worth Rs 100 cr.....! I have just to imagine what other MP's would be having how much money of BRIBE.... If a normal person would put a Cash of just even over Rs 25,000 then all questions are asked forget 1 lac in Cash....What is the meaning of all those rules like "Know the Customer"! India main sab chalta hai....these money needs to be used for Educaation and Health instead it has gone to some individual.The anamoly is that he is a single individual...only one name...Madhu much a person will need in his whole LIFE?Include his whole family? How much one need?If someone is earning ,like say Big Industrial House ,like Tata, Ril, Birla, they give something to the country and society, by the way of employment , Taxes...but an individual trying to gather this much amount is just seems like there is NO END FOR GREED.....God Save India....I can't imagine how much money must have sucked from the system by how many MP's and MLA's in 60 years of India can make a progress?I think even with all these coming we are doing reasonably good on economc front then how much India can prosper if all these bribery etc is stopped........


  1. Hi Nakul Sir,

    I feel Madhu Koda is being made scapegoat. Why only he is targeted. What about all the other corrupt politicians in India.

    Where did all these people make crores of rupee Sonia Gandhi, Yediyurrappa, Raj Shekar Reddy, Chandra Babu Naidu etc. ? Am from south India, so my bias towards south politicians. Am sure North India has corrupt politicians in the truck loads.

    All rules like paying taxes, having PAN, showing PAN card while depositing big amounts etc. apply only to common man.

    Dragonbhat (MMB).

  2. Madhu koda is corrupt leader that's why he is targetted. This is happening everywhere thatwhy obama says that, they make accountable for every single penny spent.In india most of the pilitician are corrupt. One indian politician has very big shipping company in gulf and every big officer is aware of that but nobody highlighting it.where this money come from it is you & me who suffer most.Mr A raja telecom minister underground 20000 cr & this money is recovered from telecom companies share holders. I know many Govt pension holders who are getting pension more that 25000.Its means govt is paying pension of that amount when most of private working person not get Rs 10000/- & most of population is unemployed.

  3. Hi Rajjev,
    once again thanks for increasing my confidence in KPIT Cummins. I bought it yesterday and today its up smoothly despite the SENSEX being down. Hope it sails smoothly.
    I had two queries regarding stock volumes.
    First thanks for suggesting positive view about Guj. Raclaim and Rubber Products. Its definitely a value buy, but what I am afraid of is its volume.In last 4 days, yesterday it showed 250 and for rest 3 days, its 0. So even if i buy, will i be able to buy in lots of 50 ( as its in T group)
    Second query- Whats your view on Praj Industries? Though its FV-2, because of its monopoly and future prospects, I bought 100 shares at 98. I was thinking about increasing my stake in it.But when i see volume of 8 million, I am afraid. I think, with this much high volume there will be immediate profit-booking. So can it become a multi-bagger with 5 yrs of view from CMP?
    With Regards,

  4. Sorry for this. Regarding Guj. reclaim, i mean to say, even if i buy in lot of 50, will i be able sell it once it goes up?

  5. Vikas,
    I do not like Praj much as it is 2 paidup and there is no monopoly.
    It is already a multibagger....If you remember I wrote here somewhere recently that Alfa Laval got order from Veitnam for Biofuel plant.So it is no monopoly for Praj...there will be others as well..

  6. Vikas,
    Don't worry about Vols.It will come later.If you are convinced then buy it.May happen that the Vol remains a drag for sometime and if you wants to sell early you may not be able to sell it..

  7. Hi Dragonbhat,
    Nice to see you here.Yes,you are right that many others are wandering scotfree.But that doesn't justify Koda's crime.What he made a mistake was taking bribe in CASH.....all the names you wrote must be true but , yes, untill someone gets caught no one is pakda gaya wahi chor.....

  8. Dear Rajeev,

    All these scandals happening because of money distribution. If money distribution had to to be controled then Kpit cummins , oracle type of company has to outperform.As kpit merger with spata is huge plus point.
    spata is expert in implementing SAP and SAP is future by which money can be controled.

  9. Dear Rajeev

    Between Apar Industries and Sterlite Technologies, which is better for long term. Apar has only gone from 70 levels to 200 and Sterlite in the same period went up from 44 to 330 level. Both are in same space.
    Your views pls.



  10. Dear rajeev ,
    Natinal Solar Policy annouced

    The new and renewable energy ministry would unveil the the National Solar Policy on November 14, coinciding with Pandit Jawaharlal Nehru’s birth Anniversary. The policy would be a real boost to the solar energy sector, said new and renewable energy minister Farooq Abdullah.

    He said, “Our dependence on fossil fuels has been pretty high and it must come down. We import coal from Indonesia & South Africa and petrol and gas from the Arab world. The cost is multiplying everyday and time will come when these fossil fuels will disappear. This calls for use of solar, wind, bio-gas and other renewable energies in the country. In India, we have made 10,500mw power from wind. But solar energy has lagged behind and that is why the government is coming out with the National Solar policy. This would give the necessary boost to solar power.”

    By 2020, the country hopes to generate 20,000mw of power from solar energy alone.

    costs of solar energy are high and efforts should be to reduce them apart from increasing the efficiency of photovoltaic modules and cells

    The first-of-its-kind solar farm cluster is coming up on 10,000 acre at Kadiri in Anantapur district

    Now One thing is striking my mind is that which company has best R&D in solar photovalatic which can reduce the cost.Is Xl tele is expert in that field.

  11. Amit,
    that is difficult question to answer....