CORPORATE SCAM & GOVERNMENT SILENCE:
WHY GOVERNMENT IS SILENT ON CORPORATE SCAM? BECAUSE THEY ARE TAKING HUGE AMOUNT OF DONATIONS, ALSO THEY KNOWS THEY ARE ALSO CORRUPT.
Corporate affairs minister P C Gupta said that initial investigations suggest a clear nexus between Satyam, Maytas properties and Maytas infrastructure.CID is questioning the Raju brothers and former Satyam CFO Vadlamani Srinivas .They are also looking into their e-mails and phone records over the last one month.Meanwhile, Andhra chief minister Y S R Reddy reiterated his government did not flout any rule in awarding the Hyderabad metro rail project to Maytas.
The reports say Satyam books have been overstated by Rs 5,000 to Rs 6,000 crore, leading to an inflated stock price that helped the top management make money. Apart from these, other senior officials also reportedly sold large number of shares. Sources say they include one Kiran Cavale who reportedly sold 400,000 shares and 10,000 ADRs and one Rajan Nagarajan who reportedly sold 430,000 shares and 70,000 ADRs.
BSE figures show a number of senior people in the company, including Raju and CFO Vadlamani were reportedly selling Satyam’s shares over the last 22 quarters.In June 2001, Raju had nearly 23 per cent shares. By December that year, his share was down to 22.4 per cent.In September 2002, it fell to 21.6 per cent which fell a year later to just over 19 per cent.In 2004, Raju’s holding was 16 per cent which fell to 14 per cent in 2005, 11 per cent in 2006. In 2007 it was in single digit.By September 2008 Raju’s share was just 8.27 per cent.BSE figure also show Vadlamani sold 92,538 shares while the then CEO Ram Mynampati sold 700,000 shares plus 2,50,000 ADRs.
The acquired company operated popular portals such as samachar.com and khel.com that had no clear revenue model, and was the principal beneficiary just as in the AOL deal. According to reports, the owner of IndiaWorld was himself charged with intellectual property violations by his erstwhile employer IndiaWorld.com, an Internet services company managed by U.S.-based ASAP Solutions Inc. Satyam Infoway’s position was that it was aware of the claim being made by ASAP Solutions, but that its interest was not in IndiaWorld.com but was “limited to the URL indiaworld.co.in and the other portals under its banner,” for which it had of course paid a huge sum.
One of the biggest Chartered Accountancy – PricewaterhouseCoopers which is highly reputed in India because there are thousands of students trying to get into PWC for completing their CA Course, is also in question because this firm was handling all the Satyam’s operations and if such a big scam was running around how did PWC not find out?
Harshad Mehta scam 1992–
Harshad Mehta was an Indian stockbroker and is alleged to have engineered the rise in the BSE stock exchange in the year 1992. Exploiting several loopholes in the banking system, Harshad and his associates siphoned off funds from inter-bank transactions and bought shares heavily at a premium across many segments, triggering a rise in the Sensex. When the scheme was exposed, the banks started demanding the money back, causing the collapse. He was later charged with 72 criminal offenses and more than 600 civil action suits were filed against him. He died in 2002 with many litigations still pending against him.Mehta gradually rose to become a stock broker on the Bombay Stock Exchange and lived almost like a movie star in a 15,000 square feet (1,400 m2) apartment, which had a swimming pool as well as a golf patch. He also had a taste for flashy cars, which ultimately led to his downfall.The shares which attracted attention were those of Associated Cement Company (ACC). The price of ACC was bid up to Rs 10,000.On April 23, 1992, journalist Sucheta Dalal in a column in The Times of India, exposed the dubious ways of Harshad Metha. The broker was dipping illegally into the banking system to finance his buying.Once the scam was exposed though, a lot of banks were left holding BRs which did not have any value – the banking system had been swindled of a whopping Rs 4,000 crore. When the scam was finally revealed, the Chairman of the Vijaya Bank committed suicide by jumping from the office roof because he knew that if people come to know about his involvement in issuing cheques to Harshad Mehta, people would accuse him. He ended his days in judicial custody, and will forever be known as the main architect of the Rs 50-billion scam – India’s biggest securities scandal.
( http://en.wikipedia.org/wiki/Harshad_Mehta )
Ketan Parekh SCAM-2000—-
Rumours of an income tax raid on Ketan Parekh resulted in the stockmarket getting smashed on January 11, 2000. The Sensex fell 222 points. Eventually, it turned out to be an income tax survey that found Rs 92 crore (Rs 920 million) of undisclosed money. Parekh paid an advance tax of Rs 13 crore (Rs 130 million) and all is well; at least for the time being.