with love to indore

Wednesday, January 21, 2009

We will never improve

In all My MBA classes whenever issue of commodity trading in India cropped up always soybean trading in Indore was mentioned which used to make me proud but this news of a scam puts question mark over seriousness of regulators and market participants in making Indore an attractive place for investment


NBOT scam: FIR against 10
Indore, Jan 20: After Sattyam, a financial fraud of far bigger proportion has rocked the Indore, the financial capital of Madhya Pradesh and the Central India wherein the National Board of Trade (NBOT) chairman Kailash Shahra and nine other directors of the company allegedly misappropriated thousands of crores through inappropriate allotment of shares of the National Board of Trade & Commodities Exchange.

In this regard, Economic Offence Wing of the Madhya Pradesh police have registered an FIR against 10 persons including the NBOT chairman Kailash Shahra who is also chairman of the Indore-based Ruchi Soya Group, one of India's largest soya group. Other persons against whom FIR has been registered include industrialist Rajesh Neema, G L Sharda, Satyanarayan Mulchandani, Rajesh Dhammani, Jayantilal Sanghwi, Sueshchandra Mandloi, Ramesh Mishra and A K Subramanium respectively.

According to report, the National Board of Trade & Commodities Exchange, a company floated by Kailash Shahra, chairman of an Indore-based soya company had allegedly misappropriated over Rs 15,000 crores of the share holders of seven dummy companies whose directors were under his control. " Fake documents were used in the allotment of these shares by flouting rules causing huge loss to the government," the sources said.

Following a complaint of the the Madhya Pradesh Congress Committee spokesperson, K K Mishra, the State Economic Offence Wing (EOW) had started preliminary inquiry into the matter in February last year and after 11 months of probe, the EOW has finally found the soya tycoon Shahra and others `guilty' of this mega financial fraud which has outstripped the Sattyam scam.

According to sources, Shahra had floated a new company the National Board of Trade replacing the other company known as Soya Board of Trade in 1999. The objective behind constituting Soya Board of Trade was to improve the economic condition of farmers by increasing production of soybean. However, later with an amendment in its name as National Board of Trade, this organization with a total of 119 members, merely turned out to be a paper tiger, sources close to Soyabean Processors Association of India informed.

Sources alleged that a large number of shares of this organization were distributed among the fake members. Major beneficiaries of these shares were 14 private companies floated by the Ruchi Soya chief.

1 comment:

  1. Be the change you want to see in the world. - M. K. Gandhi

    Saina Nehwal, seeded 10 then, was sure to miss a major badminton tournament had it not been for top authority in the country, Chief Passport Officer who bailed her and country’s representation in her out in time.

    The only law suits that do seem get to decree are the ones taken upon by ballyhoo guys. You need not let it get you down though, there are temples at every nook and corner and especial poojas rather effective in expediting the legal process, they’ll tell you.

    I saw a middle aged villager once outside a civic body office, sharing his wisdom of things with his wife, as if Langad came alive out of the leaves of Raag Darbari. He said, “ye babu log daftar ane ki tankha leten hain aur kaam karne ke paise lete hain”. Words of wisdom indeed, if nothing else works, show some green and see how they spring to action.

    But hasn’t it changed? Since the arrival of instruments like RTI, despair seems to be lurking about only those who are oblivious to these positive changes. IndiaForYou, a forum where apathy gives way to action, by the power of information, is of the view, lets not wait for leaders. Latest case of their hullabaloo in the house, on Gandhi’s belongings, which is going to get followed by a liberal supply of humble pie when the issue runs into intricacies of obtaining import license required for bringing anything of historical interest back in the country, an ill though up law by these leaders only, gives us another reminder that our leaders know not the first thing about what goes in the house they occupy, busy with subsistence politics most of them couldn’t care less.

    But let’s not paint them with a broad brush. We all know at least one officer and at least a handful of leaders who we know are honest and on that account are often found sulking even suffering at the hand of their colleagues. IndiaForYou, urges these people to come out for your wisdom of the system is worth its weight in gold. We have to do things on our own, let’s all stand together and make the system move.
    I invite you all, all you citizen of India, to join this movement of awareness. Let’s take the movement to every city, every village and villager of the country, it’s incumbent on us literates to learn, share and spread the word, and spread the knowhow of how to make the system work, lets anticipate together a paradigm change in bureaucracy and governance when they shall get used to working, incompetence shall suffer an evolutional loss, happy riddance!, shall reclaim its lost respect, apathy shall be jettisoned along the way, dream further that bureaucracy shall be seen as a respectable career avenue, the brain, instead of draining out, shall feel proud to join in, that the most able minds and willing hearts thus will govern the country. Dream on, dream together.

    It’s all possible, we have but to make it!
    Come join the movement.
    http://indiaforyou.ning.com

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