This document provides an overview of the coal allocation scam in India that occurred between 2004-2009. It describes how coal blocks were allocated non-transparently to private companies and PSUs without auction, resulting in large windfall gains for the allocatees estimated at over $150 billion by the CAG. The document outlines the coal allocation process, guidelines, and results, noting the process allowed valuable blocks to be obtained cheaply. It also summarizes the March 2012 CAG draft report that exposed the scam and sparked widespread media coverage and investigation. Several political figures were alleged to have misused their influence to obtain blocks for connected companies.
3. Agenda
• Economic & Market position before the scam
• About Harshad Mehta
• Modus Operandi
• Impact of scam
• Regulatory Actions Taken Against Mehta
• Conclusion
4. Economic & Market position before the scam
Licensing system
No permission for Liberalization, Privatization,
Globalization
6. There was not specific act passed for SEBI by the
parliament
Open-Outcry system
No Circuit Breakers
7. Harshad Mehta
Name: Harshad Shantilal Mehta
Born in: 29 July 1953
Died in: 31 December 2001
Profession: Stockbroker
He earned degree in Bachelor of Commerce
8. In the early eighties he quit his job and sought a
job with stock broker P. Ambalal affiliated to
Bombay Stock Exchange
Started his working life as an employee of the
New India Assurance Company
9. He took advantages of loopholes in banking
system
He triggered SENSEX in 1992 & made the scam by
diverting funds of Rs.4,000 crore
10.
11. Exposure of 1992 Securities Scam
On April 23, 1992, journalist Sucheta Dalal
exposed Mehta's scam
She is columnist in Times Of India
Sucheta Dalal
12. The Instruments were used in Scam
Mehta had used 2 instruments in this scam
1)Ready Forward Deal
2)Bank Receipts
13. Ready Forward Deal
A secured short-term (typically 15-day) loan from
one bank to another
Bank lends against government securities
A broker usually brings together two banks for
which he is paid a commission
14. The securities and payments were delivered through
the broker in the settlement process
In such settlement the banks may not know with
whom they are dealing
15. The process of RF
Settlement Process
Payment of cheques
Dispensing of securities
16. Bank Receipts
In a RF deal securities were not moved back and
forth in actuality
The borrower, i.e. the seller of securities, gave the
buyer of the securities a Bank Receipt
In this scam Bank of Karad & Metropolitan Co-
operative Bank had issued fake BR
19. Impact on others
Mehta had by then swindled the banks of a
staggering Rs 4,000 crore
Bribery case on P. V. Narsimha Rao
Stay on Liberalisation
20. Holding banks of fake BR had to face losses
BR was removed by RBI
The chairman of the vijaya bank committed suicide
over
21. Regulatory Actions Taken Against Mehta
He was later charged with 72 criminal offenses,
and more than 600 civil action suits were filed
against him
He was arrested and banished from the stock
market
Mehta and his brothers were arrested by the CBI
on November 9, 1992 for allreadly
misappropriating more than 27 lakh shares of
about 90 companies
22. Conclusion
Harshad Mehta was brave stock broker. He
knew the loopholes in banking system as well as
how to exploit that loopholes. His whole intension
to do this was to rise in SENSEX.
25. WHAT IS THE BASIC ISSUE?
Coal allocation scam is a political scandal concerning the
Indian government's allocation of the nation's coal
deposits to Public Sector Entities (PSEs) and private
companies.
In a draft report issued in March 2012, the Comptroller
and Auditor General of India (CAG) office accused the
Government of India of allocating coal blocks in an
inefficient manner during the period 2004-2009.
26.
27. FIRMS ELIGIBLE FOR A COALALLOCATION
Historically, the economy of India could be characterized
as broadly socialist, with the government directing large
sectors of the economy through a series of Five-year
Plans.
In keeping with this centralized approach, between 1972
and 1976, India nationalized its coal mining industry, with
the state-owned companies Coal India limited(CIL) and
Singareni Collieries Company (SSCL) being
responsible for coal production.
28. T H I S P R O C E S S CU L M I N AT E D I N T H E E NA CT M E NT O F T H E C O A L
M I N E S ( NAT I O N A L I SAT I O N ) A M E N D M E N T A C T, 1 9 7 6 , W H I C H
T E R M I N AT E D C O A L M I N I N G L E A SE S W I T H P R I VAT E L E AS E
H O L D E R S . E V E N A S I T D I D S O , H O W E V E R , PA R L I A M E NT
R E C O G N I ZE D T H AT T H E N AT I O N AL I ZE D C O A L C O M PA N I E S W ER E
U N AB L E TO F U L LY M E E T DE M A ND , AN D P R O V I D E D F O R
E XC E P T I O N S , A L L O W I N G C E RTA I N C O M PA N I E S TO H O L D C O AL
L E A S E S :
1 9 7 6 . C A P T I V E M I N E S O W N E D B Y I R O N A N D S T E E L C O M PA N I E S .
1 9 9 3 . C A P T I V E M I N E S O W N E D B Y P O W E R G E N E R AT I O N
C O M PA N I E S .
2 0 0 7 : C A P T I V E M I N I N G F O R C O A L G A S I F I C AT I O N A N D L I Q U I D
FA C T I O N .
29. THE COALALLOCATION PROCESS
In July 1992, Ministry of Coal, issued the instructions for constitution of a
Screening Committee for screening proposals received for captive mining by
private power generation companies.
The Committee was composed of government officials from the Ministry of Coal,
the Ministry of Railways, and the relevant state government.
A number of coal blocks, which were not in the production plan of CIL and
SSCL, were identified in consultation with CIL/SSCL and a list of 143 coal
blocks were prepared and placed on the website of the MoC for information of
public at large.
Companies could apply for an allocation from among these blocks. If they were
successful, they would receive the geological report that had been prepared by
the government, and the only payment required from the allocatee was to
reimburse the government for their expenses in preparing the geological report.
30. T H E G U I D E L I N E S F O R T H E S C R E E N I N G C O M M I T T E E S U G G E S T T H AT
P R E F E R E N C E B E G I V E N TO T H E P O W E R A N D S T E E L S E C TO R S ( A N D TO
L A R G E P R O J E C T S W I T H I N T H O S E S E C TO R S ) .
T H E Y F U RT H E R S U G G E S T T H AT I N T H E C A S E O F C O M P E T I N G
A P P L I C A N T S F O R A C A P T I V E B L O C K , A F U RT H E R 1 0 G U I D E L I N E S M AY B E
TA K E N I N TO C O N S I D E R AT I O N :
S TAT U S ( S TA G E ) L E V E L O F P R O G R E S S A N D S TAT E O F P R E PA R E D N E S S O F
T H E P R O J E C T S ;
N E T W O RT H O F T H E A P P L I C A N T C O M PA N Y ( O R I N T H E C A S E O F A N E W
S P / J V, T H E N E T W O RT H O F T H E I R P R I N C I PA L S ) ;
P R O D U C T I O N C A PA C I T Y A S P R O P O S E D I N T H E A P P L I C AT I O N ;
M A X I M U M R E C O V E R A B L E R E S E RV E A S P R O P O S E D I N T H E
A P P L I C AT I O N ;
D AT E O F C O M M I S S I O N I N G O F C A P T I V E M I N E A S P R O P O S E D I N T H E
A P P L I C AT I O N ;
D AT E O F C O M P L E T I O N O F D E TA I L E D E X P L O R AT I O N ( I N R E S P E C T O F
U N E X P L O R E D B L O C K S O N LY ) A S P R O P O S E D I N T H E A P P L I C AT I O N ;
T E C H N I C A L E X P E R I E N C E ( I N T E R M S O F E X I S T I N G C A PA C I T I E S I N
C O A L / L I G N I T E M I N I N G A N D S P E C I F I E D E N D - U S E ) ;
R E C O M M E N D AT I O N O F T H E A D M I N I S T R AT I V E M I N I S T RY C O N C E R N E D ;
R E C O M M E N D AT I O N O F T H E S TAT E G O V E R N M E N T C O N C E R N E D ( I . E . ,
W H E R E T H E C A P T I V E B L O C K I S L O C AT E D ) ;
T R A C K R E C O R D A N D F I N A N C I A L S T R E N G T H O F T H E C O M PA N Y.
COALALLOCATION GUIDELINES
31. RESULTS OF COALALLOCATION PROGRAM
Given the inherent subjectivity in some of the allocation guidelines, as well as the potential
conflicts between guidelines it is unsurprising that in reviewing the allocation process
from 1993 to 2005 the CAG says that "there was no clearly spelt out criteria for the
allocation of coal mines.”
2005: the Expert Committee on Coal Sector Reforms provided recommendations on
improving the allocation process,
2010: the Mines and Minerals (Development and Regulation) Act, 1957 Amendment Bill
was enacted, providing for coal blocks to be sold through a system of competitive
bidding.
The foregoing supports the following conclusions:
The allocation process prior to 2010 allowed some firms to obtain valuable coal blocks at
a nominal expense
The eligible firms took up this option and obtained control of vast amounts of coal in the
period 2005-09
The criteria employed for awarding coal allocations were opaque and in some respects
subjective.
32. MARCH 2012: COALGATE
EXPLODES- THE DRAFT REPORT
OVERVIEW
The CAG report is a performance audit focusing on the allocation of coal blocks and the
performance of Coal India in the 2005-09 period. The Draft Report, stretching to 110
pages—far more detailed and containing more explosive allegations than the toned-down
Final Report of some 50 pages—was the document that sparked the Coalgate furore. The
Draft Report covers the following topics:
Overview (pp. 1–2)
Audit Framework (pp. 3–4)
Institutional Framework (p. 5-10)
Gaps in Supply and Demand (p. 11-17)
Coal Blocks-Allocation and Production Performance (p. 18-55)
Production Performance of CIL (p. 56-83)
Conclusion and Recommendations (pp. 84–88)
Annexure (pp. 89–110)
33. FIRST CAG CHARGE
The most important assertion of the CAG Draft Report :
Government had the legal authority to auction the
coal, but chose not to do so.
Any losses as a result of coal allocations, then, between
2005 and 2009 are seen by the CAG as being the
responsibility of the Government.
34. SECOND CAG CHARGE
If the most important charge made by the CAG was that
of the Government's legal authority to auction the coal
blocks, the one that drew the most attention was certainly
the size of the "windfall gain" accruing to the allocatees.
On pp. 32–34 of the Draft Report, the CAG estimates
these to be 1,067,303 Crore.
35. MARCH-AUGUST 2012: COALGATE GROWS-
THE MEDIA, BJP & THE CBI INVESTIGATION
On March 22, the Times of India,
broke the story :
NEW DELHI: The CAG is at it again.
About 16 months after it rocked the UPA
government with its explosive report on
allocation of 2G spectrum and licences,
the Comptroller & Auditor General's
draft report titled 'Performance Audit
Of Coal Block Allocations' says the
government has extended "undue
benefits", totalling a mind-boggling Rs
10.67 lakh crore, to commercial entities
by giving them 155 coal acreages without
auction between 2004 and 2009. The
beneficiaries include some 100 private
companies, as well as some public sector
units, in industries such as power, steel
and cement.
36. ALLEGATIONS MADE AGAINST:
S. JAGATHRAKSHAKAN: In September 2012, several news
reports alleged that family of S Jagathrakshakan, Minister of State for
Information and Broadcasting in the UPA government is a part of a
company named JR Power Gen Pvt Ltd. which was awarded a coal
block in Orissa in 2007.
It was the same company which formed a joint venture with a public
sector company, Puducherry Industrial Promotion Development and
Investment Corporation (PIPDIC), on January 17, 2007. Barely five
days after, PIPDIC was allotted a coal block.
According to the MoU, JR Power enjoyed a stake in this allotment.
However, JR Power had no expertise in thermal power, iron and steel, or
cement, the key sectors for consumption of coal. Later, in 2010, JR
Power sold 51% stake to KSK Energy Ventures, an established player
with interests in the energy sector.
In this way, the rights for the use of the coal block ultimately passed on
to KSK
37. AJAY SANCHETI: Ajay Sancheti's SMS
Infrastructure Ltd. was allegedly allocated coal
blocks in Chhattisgarh at low rates. He is a BJP
Rajya Sabha MP and is believed to be in close
relation with Nitin Gadkari.
According to the CAG, the allocation of the coal
block to SMS Infrastructure Ltd. has caused a loss
of Rs. 1000 crore.
38. PREMCHAND GUPTA:
UPA partner Rashtriya Janata Dal’s leader Premchand
Gupta's sons' company, new in the steel business applied for a
coal block when Premchand Gupta was the Union minister for
corporate affairs and bagged it about a month after his tenure
ended along with that of his government.
The company in question is IST Steel & Power - an associate
company of the IST Group, which is owned and run by
Premchand Gupta’s two sons Mayur and Gaurav. IST Steel, along
with cement majors Gujarat Ambuja and Lafarge, was allocated
the Dahegaon/Makardhokra IV block in Maharashtra.
The company, which applied for a block on January 12, 2007, and
was awarded it on June 17, 2009, is sitting on reserves of 70.74
million tonnes. The reserves it controls are more than the
combined reserves held by much larger companies - Gujarat
Ambuja and Lafarge.
Mr Gupta maintains he had no involvement in IST Steel and
denies influencing the coal-block allocation process.
39. NAVEEN JINDAL:
Jindal Steel and Power got a coal field in February 2009 with reserves of
1500 million metric tones while the government-run Navratna Coal India Ltd.
was refused.
On February 27, 2009, two private companies got huge coal blocks. Both the
blocks were in Orissa and while one was over 300 mega metric tones, the other
was over 1500 mega metric tones. Combined worth of these blocks was well
over Rs 2 lakh crore and these blocks were meant for the liquefaction of coal.
One of these blocks was awarded to Jindal. Naveen Jindal's Jindal Steel and
Power was the company which was allotted the Talcher coal field in Angul in
Orissa in 2009, well after the self-imposed cut off date by the Centre on
allocation of coal blocks.
The Opposition alleged that the Government violated all norms to give him coal
fields. Naveen Jindal, however, denied any wrongdoing.
On 15 September 2012, an Inter Ministerial Group (IMG) headed by Zohra
Chatterji (Additional Secretary in Coal Ministry) recommended cancellation of
a block allotted to JSW (Jindal Steel Works), a Jindal Group company.
40. Naveen Jindal's company has filed an FIR against Zee
Business channel for allegedly demanding Rs 50 crore
for not doing a news story on coal scam.
As per the FIR, the HR head of the Jindal company has
alleged that Sudhir Chaudhry and Sameer Ahluwalia
met officials of the Jindal Group and told them that they
had stories against them which could be dropped if a
certain amount of money was paid.
The official alleged that when the company refused to
pay, the channel ran a series of malicious news items
targeting the Jindals.
41.
42. BJP RESPONSE
In response to the Times of
India story there was an
uproar in Parliament, with the
BJP charging the government
with corruption and
demanding a court-monitored
probe into coal allocations:
The BJP governments
themselves were embroiled in
this, since the states ruled by
BJP had also opposed public
auctions of the mines
43. CBI INVESTIGATION
On 31 May 2012, Central Vigilance
Commission(CVC) based on a complaint
of two BJP Member of Parliament Prakash
Javadekar and Hansari Ahir directed a
CBI enquiry.
There were leaks of the report in media in
March 2012 which claimed the figure to be
around 1,060,000 crore. It is called by the
media as the Mother of all Scams.
Discussion about the issue was placed in
the Parliament on 26th Aug, 2012 by the
Prime Minister Manmohan Singh with
wide protests from the opposition.
According to the Comptroller and Auditor
General of India, this is a leak of the initial
draft and the details being brought out were
observations which are under discussion at
a very preliminary stage.
On 29 May 2012, Prime Minister
Manmohan Singh offered to give up his
public life if found guilty in this scam.
44. FORMATION OF INTER-MINISTERIAL
GROUP (IMG)
At the end of June 2012, coal
ministry decided to form an Inter-
Ministerial Group (IMG), to decide
on either de-allocation or forfeiting
the Bank Guarantees (BG) of the
companies that did not develop
allotted coal blocks.
Zohra Chatterji, additional secretary,
coal ministry was named as
Chairman of the IMG. Other IMG
members include representatives
from power, steel, departments of
economic affairs, industrial policy
and promotion, and law and justice.
Significantly, the decision was taken
after the CVC had already ordered a
CBI enquiry into alleged
irregularities.
45. THE CAG FINAL REPORT
OVERVIEW
On 17 August the CAG submitted its Final Report to
Parliament. Much less detailed than the Draft Report, the
Final Report still made the same charges against the
government:
The Government had the authority to auction the coal
blocks but chose not to.
As a result allocatees received a "windfall gain" from the
program.
The Final Report had the following outline:
Preface (pp. i-ii).
Executive Summary (pp. iii-viii)
Chapter 1. Coal—An Overview (pp. 1–6)
Chapter 2. Audit Framework (pp. 7–8)
Chapter 3. Augmentation of Coal Production (pp. 9–
20)
Chapter 4. Allocation of Captive Coal Blocks (pp. 21–
32)
Chapter 5. Productive Performance of Captive Coal
Blocks (pp. 33–42)
Chapter 6. Conclusion and Recommendation (pp. 43–
45)
46. FIRST CAG CHARGE
The CAG continued its
contention that the Government
had the legal authority under the
existing statute to auction coal
by making an administrative
decision, rather than needing to
amend the statute itself.
The CAG draws the following
conclusions:
In the period between July 2006
and the end of 2009, 38 coal
blocks were allocated under the
existing process of allocation,
"which lacked transparency,
objectivity, and competition.”
47. SECOND CAG CHARGE
The biggest change from the Draft Report was the
dramatic reduction in the windfall gains from 1,067,303
Crore to 185,591 Crore.
This change is due to:
windfall gain/ton decreased 8% from 322 in the Draft
Report to 295 in the Final Report
number of tons decreased 81% from 33.169 to 6.283
billion metric tons of coal. This is because the Final
Report considers "extractable coal" (i.e. coal that could
actually be used in production) as against the Draft
Report, which considered coal in situ (i.e. coal in the
ground without taking into account losses that occur
during mining and washing the coal).
48. CAG REPORTS VS. GOVERNMENT
RESPONSE
• Pvt. firm gain Rs. 1.86 lakh
crore after blocks given by
“nomination”.
THE LOSS
• Despite repeated advice from
Law ministry, competitive
bidding delayed.
THE
DELAY
• After being advised to
proceed with auctioning,
Coal Ministry wasted time.
THE
AUCTION
CAG’s figure misleading. Of the 57
blocks cited, only one operational.
Ministry took time to clarify for
bidding, MMDR Act needed
changes.
Oppositions from stated like
Chhattisgarh, Rajasthan and Bengal
caused delay.
CAG’S REPORT GOVT. RESPONSE
49. SEPTEMBER 2012: COALGATE REACHES
SUPREME COURT OF INDIA
Advocate M L Sharma filed a Public Interest Litigation(PIL) in the
Supreme Court seeking to cancel the allotment of 194 coal blocks
on grounds of arbitrariness, illegality, unconstitutionality and
public interest.
Defending the CAG, a Supreme Court bench of Justices R M Lodha
and A R Dave dismissed the Solicitor General Rohinton Nariman’s
objections that petition relies heavily on the CAG report by saying,
the CAG is a "constitutional authority" and that its report is "not a
piece of trash.”
Moreover, the court ordered the government to inform it of reasons
for not following the 2004 policy of "competitive bidding" for coal
block allocation. The apex court wanted to know not only the steps
that have been taken but also proposed against companies that have
breached the agreement.
51. The Parliament session, scheduled from August 8,2012 to
September 7,2012, was expected to meet for 20 sittings
with the agenda listing 29 pending bills for consideration.
The government had planned to introduce 15 new bills.
Initially proceedings were disrupted over the violence in
Assam and concern over exodus of Northeast students, the
latter half has been washed off with BJP's adamant stand
demanding PM Manmohan Singh's resignation over
Coalgate.
So far, during the budget and monsoon sessions,
Parliament has passed 16 bills in 2012
52.
53. WHY THE HEAT IS ON RELIANCE?
Reliance Power is Developing a 4000 MW Plant
under Ultra Mega Power Project at Sasan in
Madhya Pradesh and was allotted two captive coal
blocks- Moher and Moher- Almohri, in September
2006 for the project.
In Nov. 2007, MP Chief
Minister requested PM to
allow Reliance to use surplus
coal from the captive blocks
of the Sasan UMPP for
another Power Project being
developed by the company at
Chitangi in the state.
The Matter was referred to an
Empowered Group of
Ministers (EGOM). It
recommended that Reliance
be allowed to use surplus
coal from blocks allotted for
Sasan for the other Project.
The Sasan Plant was
then allotted a third
coal-block, Chhatrasal
in October 2006 to
meet its coal
requirement of
16million tonne/year
54. WHY HAS CAG RAISED
QUESTIONS?
CAG says Anil Ambani owned
Reliance power got undue benefit of
Rs. 29,033 crore when govt. allowed
use of surplus coal from blocks
allotted to Sasan Power Plant for its
other project.
Why was a third mine allocated to
Sasan Project by snatching it from
State-owned NTPC, when it was not
established that two previous mines
would be insufficient to generate
3,960 MW of Power.
Chitrangi Plant would supply power
at higher tariff Rs.2.45-Rs.3.702 per
unit than Sasan’s Rs.1.196 per unit,
though it would get coal at same
price as Sasan’s UMPP.
55. COMPANY’S DEFENCE
No condition was
violated.
The decision of
permitting use of
surplus coal for
power generation
was ratified by
EGOM.
Audit Observations
do not completely
take into account the
extant policy and
precedents.
Reliance Power had
no role in allotment
of coal-reserves to
Sasan UMPP.
56. OBSERVATIONS
Government unduly benefitted Private Power Developers in
awarding of UMPP’s.
Developers misused and diverted coal made available to them.
Of the four UMPP’s currently operational, three are owned by
Anil Ambani’s Reliance Power (RPL) and one by Tata power.
Mundra and Krishnapatnam UMPP’s have land in excess of
1538 acres and 1096 acres.
EGOM allowed the excess land to be retained by the
developers instead of utilizing the same for other public
purpose.
59. 2G SCAM
2 G is a network service which was
supposed to be launched in India for
which the network provides such as
vodaphone,100p/ Bpl, Reliance,
airtel,docomo etc had to be approved by
the government of India to hold the
licence for the bandwidth which is used
for the 2g service and for this licence the
politicians of India have said to be taken
some brible just to give the licence
60. A RAJA( Andimuthu
Raja)
It is an Indian politician
from the Dravida
Munnetra Kazhagan
(DMK) . He was a
member of the 13 th
loksabha representing
the Nilgris constituency
of Tamil nadu
PARTIES INVOLVEMENT
61. The shortfall between the money
that the law mandated to be
collected is estimated to be RS
1766.45 Billion (US$29 Billion )as
valued by the comprtroller and
auditor,General of India based on
3G and BWA spectrum Auction
prices in 2010.
62. For example: the 3G facility allow us
to stream videos from the internet
from the cellphone for live
streaming the internet usage
amount is high hence they require
particular licence from the
government to allow them to use
similarly the 2G required a licence
for which a bribe had been
demanded by the politicians which
has now been expored this.
63. The supreme court Declared the allotment of
spectrum Court Declared the allotment of spectrum
as
“ unconctitutional and arbitary and
quashed all 122 licence issued in 2008 during the
Tenure of Raja ( then minister for communication &
IT from 2007 to 2009
64. May 2007: Raja takes over as
telephone minister
Aug 2007: process of allotment
of 2G spectrum for telecom
along with universal access
service (UAS) licence initiated
by the department of
telecommunication( DOT)
25 sep 2007: Telecome ministry
issues press Note fixing deadline
for Application as 1 oct 2007
NEWS
67. • He first lost some money in a multi level company
but he realized the evil MLM empire he could
Himself build.
• He first founded a company called DBC multi-level
marketing company pvt. Ltd.
• He had tasted success and this led to the
establishment of KBC multi trade pvt. Ltd
in year 2010.
68. Benefits for Agents
List of impressive benefits that can draw anyone to take up their agency 20-30% in
commissions
upfront for all money brought into the scheme.
Make seven members and get a free trip to Mumbai.
Make 36 members and get a free trip to Goa
Make 81 members and get additional Rs 5,000/-per month.
Make 250 members and get additional Rs.10,000/- per month.
Make 12,500 members and get a bungalow worth Rs. 51 Lakhs as additional benefit.
Make 25,500 members and get a cash prize of Rs. 1 Crore as additional benefit. The company
also
publically facilitated at least 100 agents who had got them deposits of more than Rs. 1
Crore.
69. What was the KBC Scheme?
Benefits for Investors
Promise to double money before 3 years (30 month period).
People were asked to invest Rs. 7,200/- or Rs.17,200/- or Rs. 57,200/- or Rs. 86,000/- Assuring a
three-times return in less than three years, reports suggest the pay back were through postdated
cheque to make it look credible.
Sample this offer:
Invest Rs. 86,000/- now
Get Rs. 86,000/- after six months
Get Rs. 86,000/- after eighteen months.
Then finally get Rs. 86,000/- after thirty months. Thus giving huge three times returns in 30
months.
72. About - Augusta Westland's
One of the Leading designer of helicopters in the
world.
Italian by origin.
Leading producer in European region related to all
kinds of helicopters such as:
1)fighter helicopters.
2)Drones.
2) helicopters for tourism purposes.
3)specialist designer of luxurious VVIP helicopters
making.
73. Why India decided to buy new helicopters?
India having old helicopters.
Accidents prone old helicopters.
Use of old helicopters was proving dangerous for VIP
personnel's.
Hence there is need to have compact helicopters for
transporting VVIP personnel's in India.
Hence Indian government decided to buy AW 109
helicopter & signed approx 4000 CR deal.
74. AN INFAMOUS AUGUSTA WESTLAND
SCAM
personnel's involve in AW VVIP scam taken a
bribes for success of deal.
76. Events & Evidences
The note also contains codes the bribes to be paid
out divided as
1), "AF" €6 Million
2)"BUR" €8.4 Million
3)"Pol" €6 Million
4) "AP" €3 Million.
77. Confirmation from defense minister "Yes,
corruption has taken place in the helicopter deal
and bribes have been taken –AK Anthony
defense minister of India
79. CBI IN ACTION
CBI taken it vigorously and GOI able to recovered
45% of amount that is 2068 Cr.
And has recovered the entire amount of around
INR1620 Cr (45% of total contract value INR3600
Cr) it had paid to Augusta Westland.
80. FIR & ENQUIRY
First Information Report (FIR) By defense minister.
After a huge controversy and allegations of corruption,
Defense Minister A.K. Antony, on 12 February,
ordered an investigation by the Central Bureau of
Investigation (CBI).
CBI registered a preliminary enquiry against 11
persons and confirmation of there involvement in
scam.
84. Suspects behind the bars
ORGANISATIONS
The FIR also named four companies –
1)Italy-based Finmeccanica,
2)UK-based AugustaWestland
3)Chandigarh-based IDS Infotech
4) Aeromatrix.[17][18]
98. 7. Satyam Scam
Nothing is right on left
Nothing is left on right
PRESENTED BY: POOJA HIRE (HR)
99. Introduction
satyam computer services was founded in 1987 by
ramalinga Raju.
It offers consulting, information technology
services, engineering, product development etc.
Company unveiled its new brand identity
“Mahindra satyam”.
100. The company was listed with new York
stock exchange, national stock exchange
and mumbai stock exchange.
101. The company was listed with new York
stock exchange, national stock exchange
and mumbai stock exchange.
102.
103.
104.
105.
106.
107. 8. COMMON WEALTH GAME 2010
SCAM
PRESENTED BY: SIDDANNA MADDANA (MARKETING)
108. Host city: New Delhi, India
Nations participated 85 Commonwealth Teams
Events: 17 disciplines
Opening ceremony: 3 October 2010
Closing ceremony: 14 October 2010
Main Stadium: Jawaharlal Nehru Stadium
Motto: "COME OUT AND PLAY"
110. Bus
Services
•Rs. 18000 crore were spent on DTC bus service
Delhi government spent 60 lakhs on purchase of bus
but the original cost was just 40 Lakh
The name is ho-ho services
111. • During the times of Games, Delhi Government had
spent huge amount on Extension of Delhi metro line
• Amount Spend was around 3000cr
• Delhi government spent around 10 lakh on each pillar
but actual cost was 7 lakh per pillar
Metro
Services
112. •In opening Ceremony of CWG there was a special
attraction for all Guests and It was Aerostat or balloon
show.
•Its costing around 70 crore
•Actual cost of this Aerostat was 40cr as contracted in U-k
based company.
Balloon Cost and
Service
113. Real estate developer EMAAR-MGF may have to forfeit Rs. 183 crores it
deposited with the government of India as a bank guarantee for the
Commonwealth Games Village that it built.
EMAAR is being penalised for structural defects, and inadequate amenities
including insufficient power and waste supply for the apartments that housed the
delegates from 71 countries that participated in the Games.
NDTV has accessed documents that chronicle complaints about the Games
Village filed by the representatives of the participating countries. From poor
plumbing to water leaks and concerns about structural safety, the catalogue of
grievances is extensive and indicting .Delhi Chief Minister Sheila Dikshit was
asked to get the Village in shape just days before the Games began.
113
114. With just 12 days to go for the Games, a new foot over-bridge near the main
venue of the Games, Jawaharlal Nehru Stadium, collapsed, injuring 23
labourers, five of them critically
The location couldn't
Before
After