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Posts Tagged ‘Economic Times’

Walmart Issues ID To Retailers Begins India Operations

In Business, India on December 8, 2012 at 15:02

Wal-Mart the Giant Chain has started issuing ID to Retailers in Chennai, Tamil Nadu and started constructing Storage Facilities and Offices even before FDI Bill is passed and has become law!

It is constructing Storage Facilities in Tambaram,Thiumazhsai and Vanagaram, suburbs of Chennai,Tamil Nadu and Wal-Mart has a full-fledged Marketing Office in Anna Nagar,Chennai.

Tamil Magazine Kumudam reported last week this fact.

Subsequently the construction workers are reported to have been threatened and warned against disclosing the details of the ownership of the Constructions.

Not only this, Wal-Mart has issued Identity cards to Retail dealers in Chennai and have gone ahead in marketing their Chain even to barber shops.( Kumudam Reporter Dated 12/12/2012)

On publication of this report the Company is to cajoled, threatened the card holders.

Hindu Makkal Katchi has filed a Police complaint and the investigations are on.

Source:Kumudam Reporter Dated 12/12/2012

Walmart

Walmart

Please also read my Blog;

On the joyous occasion of The Indian Government winning the vote in Parliament on FDIin Retail Trade, I have great pleasure in informing my readers how Wal-Mart broke the Law even before entering Indian Market.

The exclusive story by Reuters explains how Wal-Mart surreptitiously entered India and how it lobbied.

Story by Reuters:

http://ramanan50.wordpress.com/2012/12/05/wal-mart-breaks-indian-law-even-before-entering-the-story/

Related:

Wal-Mart’s Indian joint venture has suspended several senior executives and delayed the opening of some stores in the country as part of an internal bribery investigation, the company said on Friday.

It is the latest in a series of setbacks for the retail giant’s international operations and comes at a particularly sensitive time here because Indian policy makers recently allowed foreign retailers like Wal-Mart to open stores in the country. The investigation seems to have emboldened opposition lawmakers in New Delhi who are trying to overturn the government’s decision on foreign retailers.

http://www.nytimes.com/2012/11/24/business/global/wal-marts-india-venture-suspends-executives-as-part-of-bribery-inquiry.html?_r=0

The Economic Times was a good venue in India to break this story.  In a classic sentence, they painted with a very light brush the problem of corrupt business practices in India:

As companies in India, like in Mexico, are susceptible to pay bribes at various levels to get reams of licenses required to start and operate businesses, Walmart wants to make sure they do business with only those vendors who don’t indulge in such activities.

Reading this you would think that somehow Walmart was a simple bystander in the bribery business both in India and Mexico, as opposed to having paid over $20 million USD in bribes to get its way in Mexico, and an unknown amount in India.  The Economic Times and reporter Rasul Bailay are being disingenuous here.  When they say “companies in India…are susceptible to pay bribes…to get licenses…to start and operate businesses…” they have to know that this is likely what Bharti Walmart itself was doing and not simply suppliers.  Furthermore, If the suppliers were paying bribes to advance their businesses, the bribes would be finding their way into the pockets of Bharti Walmart buyers and executives….

http://janamejayan.wordpress.com/2012/10/13/walmart-concedes-involvement-with-bribes-in-india-too/

 

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DLF Robert Vadra -II, Borrows At Interest Lends Free, Docs.

In Corruption, India on October 8, 2012 at 13:53

Update. 8 March, 2013.

While the Government tried to brush aside charges for the past 4 months, new evidence has surfaced about Robert Vadar’s suspicious activities.

Headlines  Today reports.

 

“Robert Vadra’s land deals in Haryana have turned murkier with new evidence suggesting hard cash transactions were made in the guise of a property purchase.

A Headlines Today investigation has unearthed documents which raise suspicion over the authenticity of Vadra’s land deals and the validity of the clean chit given to him by a three-member probe panel appointed by the Haryana government in October last year.

Between 2005 and 2006, Vadra struck four land deals with one agriculturist – Harbans Lal Pahwa – buying a total of 46 acres land in Amipur village in Faridabad district, only to sell it back to Pahwa at a premium five years later.

 

Vadra signed the land deals overlooking the Haryana Ceiling on Land Holdings Act, 1972, which states that one person or family can buy a maximum of 26.9 acres of agricultural land in the state.

On September 8, 2005, Vadra bought 12 acres of land in Amipur village from Pahwa for over Rs 32 lakh. On January 13, 2006,he bought 19 acres from Pahwa for Rs 54 lakh.

On April 14, 2006, Vadra acquired 10 more acres of land from the same land dealer for Rs 30 lakh. On April 28, 2006, Vadra’s wife Priyanka Gandhi struck a deal with Pahwa for 5 acres in Amipur for Rs 15 lakh.

Pahwa bought the land in three installments in 2010, bearing a loss of about Rs 2.5 crore. The transaction triggered suspicion about Pahwa’s connection with Vadra, and the relationship fell under scrutiny when Headlines Today dug up Vadra’s balance sheets.

The investigation team came across a curious figure of Rs 1.55 crore against the name of Harbans Lal Pahwa.

Documents in the possession of Headlines Today show Pahwa’s company, Carnival Intercontinental Estate Pvt Ltd, had given a loan of Rs 1. 55 crore to Vadra’s company, Skylight Hospitality.

Pahwa also held a directorship in Vadra’s company, Real Earth, for over a year between February 2008 and March 2009″

Copy of the Cheque issued by Robert Vadra

Copy of the Cheque issued by Robert Vadra

(via The Mail Online).

Just how and where from DLF lend Robert Vadra?

It is evident from Records of DLF it had huge debts,yet lent Robert Vadra free of interest the money it had borrowed at 12.8.%/a.

Finance Minister P.Chidambaram, while ruling out an enquiry into Robert Vadra’s dealings, stated that ‘no enquiry can be instituted on the basis of insinuations”

Is this insinuation not borne and substantiated by the facts mentioned above?

The Affairs of DLF.

/DLF-REUTERS.jpg

Here is a company which analysts believe should be cutting down on its debt by around Rs 9,000 crore, and it has been giving out interest-free loans to an individual with zero or very little experience in running a real estate business. Reuters

“The company has recently been accused by Arvind Kejriwal and Prashant Bhushan of giving interest free loans amounting to Rs 65 crore to Robert Vadra. Vadra is  married to Priyanka Vadra, daughter of Sonia ‘…..

Kejriwal and Bhushan have released documents which clearly show that companies set up by Vadra borrowed money from DLF and then used that money to buy properties from DLF, among other things…

Please Down load from scirbd.com

http://www.scribd.com/doc/109092002/Press-Release-English

 

“According to a tweet on the Twitter handle of news channel NDTV, DLF has said that their dealings with Vadra have been completely transparent. Vadra, on his part, had explained his relationship with DLF to The Economic Times in March 2011. “I have a good understanding with DLF. Our children are friends, we are friends. They are seasoned businessmen. They are not daft. They are educated, sensible people and are reasonable and shrewd in their business. They don’t need me to enhance them. They’ve existed for years,” Vadra had said. (You can read the complete story here)….

As per an analyst presentation (dated 6 August 2012) made by DLF, the gross debt of the company stands at a whopping Rs 25,060 crore as on 30 June 2012. At the end of 31 March 2012, the gross debt had stood at Rs 25,066 crore. (You can access it here).

The annual report of DLF points out “the company’s borrowings from banks and others have a effective weighted average rate of 12.38 percent per annum, calculated using the interest rates effective as on 31 March 2012 for the respective borrowings.”

So what this means is that the company had debt outstanding of Rs 25,066 crore as on 31 March and was paying an interest of 12.38 percent on that debt. The debt outstanding as on 30 June 2012 had not changed much and was at Rs 25,060 crore. It is fair to assume that over a period of three months the interest rate on the debt outstanding wouldn’t have changed significantly.

What is also interesting is that during 2011-2012 (i.e. the period between 1 April 2011 and 31 March 2012), the sales of the company stood at Rs 4,582.67 crore. This means that the debt of the company is nearly 5.5 times its annual sales, which is extremely high.

The question that DLF needs to answer is that why is a company which has such huge outstanding debts, paying an interest of 12.38 percent per year on it, giving out interest-free loans? Also it seems to have been having trouble in bringing down its outstanding debt. The outstanding debt between March and June 2012 has gone down by only Rs 6 crore.

The company has been trying to bring down the debt by selling investments that it had made over the last few years. It recently sold a plot that it owned in Lower Parel in Central Mumbai to Lodha Developers for Rs 2,750 crore. The company has been trying to sell several of its other investments over the last few years..’..

Robert Vadra's Deals.

Robert Vadra’s Deals.

http://www.firstpost.com/business/dlf-borrows-money-at-12-38-lends-free-to-vadra-481727.html

“Independent directors of DLF have said the controversial transactions between Robert Vadraand India’s largest realty firm were not discussed by the board and if allegations of easy loans and cheap deals are proved, they should be probed.

“The matter was not flagged off at any board meeting. We have not come across any such instance where favours have been done. It’s not come to our notice. It is not possible to look at each and every sale transaction. But we try to ensure that all transactions are done at market prices,” said KN Memani, an independent director at DLF, and former chairman of Ernst & Young India”.

http://economictimes.indiatimes.com/news/politics/nation/dlf-independent-directors-in-the-dark-over-robert-vadra-deals/articleshow/16715801.cms

Related:

http://ramanan50.wordpress.com/2012/10/08/dl-f-robert-vadra-bjp-i/

Related:

http://ramanan50.wordpress.com/2012/10/07/robert-vadrapakistan-origin2-3-billion-full-story/

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