Syndicate Bank: Court orders

proclamation proceedings
against alleged middleman
CBI seeks list of films
cleared by Rakesh Kurnar
Rashmi Rajput
Sebi damps down on larges
everponzL.. worth 150k<r
Orders realty firm PACL to dose schemes, refund investors' rnoney in 3 months
NEW DELHI: In its biggest-

ever crackdown on a targe-

scale illicit rnoney pooling
schenie estimated atnearly Rs
50,000 crore, regulator Secu-
rities and Exchange Board of
Indk (Sebi) on Fridayordered
inunediate dosure of unau-
thorised collectiye invest-

ment schemes run by PACL

Ltd and refund of inyestor&
money within three rnonths.
Besides, the capital max-
kets regulator also saH it is
initiating further pro ceedings
against the company and its
nine promoters and direc-
tors for fraudulent and unfair
trade practices, as also for
violation of Sebi's collective
investment schemes (CIS)
Regulations, among others,
as per a direction from the
Supreme Court oflndia.
As per Sebi's 92-page
order, the total amount mobil-
ised by the company, 'by its
own admission' comes to a
whopping Rs 49,100 crore and
'this figure could have been
even more if PACL would
have provided the details of
the funds mobilized during
theperiodofl April, 2012 to
25 25 February 2013
The number ofcustomers
through which the money
The number of customers through whom
the company collected this money is
estimated at 5.85 crore, which
includes both those investors
wha have been allotted land and
those who are yetto be allottedland
could have been collected PACFS top executives, indud
is estimated at around 5.85 Ing Ninnal Singh Bhangoo,
crore, which includes the afe belogprobed by Central
customers who are said te ureau of Investigation of
havebeen allotted land and Indfa (CBI) as weil.
who areyet tobe allotted the Besides, this isis also one
land, Sebi said. ofthe longest-running cases
'This is the biggest ever under the scanner of Sebi,
amount, as also the largest which had first intimated
humber of investors, so far PACL more than 16 years
involved in a case found to ago way back in February
be unauthorjsed 'collective 1998, that lt could 'neither
investment scheme' by reg- launch any new schemes nor
ulator Sebi. Among others, continue raising funds under
 Crcacks whip on 'livesfock' scheme, bars
Step Up Marketing from raising funds
MUMBAI: In a fSsh crackdown on illegal 'livestock'
investment schemes promising huge returns, Sebi to-
day
barred Step Up Marketing and its directors from

redsing funds frorn such scheines, till further directions,

The Securities and Exchange Board of Indio (Sebi)

has prima fade found that the Haryana-based firm

was carrying out 'collective investment scheme (CIS)'
without obtaining requisite authorisation from the

market regulator.

The company was found ta be raising money under its

schemes 'Real Step Pashupalan and Real Step Breed

Ing Farm' tor sole, breeding, rearing Bnd keeping of
livestock.

'Protecting the interests of investors is the first ond

forcmost mandate for Sebi and therefore, steps have

to be taken to ensure that Step Up Marketing Private

Ltd does not collec? Further funds under its schemes
and no investors are defrauded,' Schi said in an

order on Friday. PTI

its existing schemes? ofland, registration expenses,

Wbile the company main and

tained tat lt was not running
any fflicit scheme and was
in fact engaged in the busi
ness of sale and purchase of
land, Sebi issued a notice in
November 1999 to PACL,
alleging that lt 'was operat
Ing CIS, wherein the funds
ofthe investors were pooled
and utjlised towards the cost
developmental charge
other incidental expenses?
The case later went to
courts, while the apex court
passed an order in Febru-
ary last year directing Sebi
to ascertain whether the
business of PACL feil within
the purview of CIS
not, and accordingly take
further action. PTI
SYNDICATE BANK CASE: MIDDLEMAN
TO BE DECLARED ABSCONDING
NEW DELHI: A CRI court here on Friday started

proceedings against Purushottarn Lal Totlani, an

alleged middieman in Syndicate Bank bribery case'
to deciare hirn as proclairned offender. The court
observed that NBWs (Non Bailable Warrant) were

earlier issued against hirn twice in the case and

Totlani was evading the arrest. Special CRI judge

Swarna Kanta Sharrna said, 1 am convinced that the

accused is concealing hirnself and the non-bailable

warrants (NBW) cannot be executed against

hirn, and therefore, order issuance of process
under section 82 CrPC (prociarnation for person

absconding).'
 SC seeksBihars
reply on graft in
drugs purchase
M POST BUREAU anwaz All challenging the
Patna High Courts July 24
NEW DELHL: 'Ihe order refusing independent
Supreme Court mi Friday probe with a direction that
sought response from the the state's principal secre-
Bihar government on a tary, health wouldconduct
petition seeking CBI probe an enquiry and final deci-
intq alleged irregularities sion would be base
on its
in processing and purchas- outcome.
ing of drugs and surgical Senior advocate Rajiv
items by Bihar Medical Dutta along with law-
Services and Infrastruc- yer Rajiv Kumar Singh,
tureCorporation Limited appearing for Ah, sub-
(BMSICL). mitted that many patients
A bench headed by have died due to bad qual-
Chief Justice RM Lodha ity of drugs and surgical
issued notices to state instruments.

government through its 'Such kind of irrespon-

chief secretary, Depart- sible act of state is not
ment of Health and other only failure of adminis-
departments concerned tration but also amount-
including BMSICL on ing to negligence on part of
the petition alleging mass procurement of drugs and
corruption. equipment and amounts to
The petition alleged that serious act of criminality
there were irregularities in against citizens,' the peti-
the qualit quantity and tion said.
rate of purchase of drugs The petitioner has filed
and surgical items for a PIL atthe Patna High
20 12-13, ignoring the stan- Court seeking direction
dard set by
Bihar's State for proper and indepen-
Health Society, formed dent enquiry either by CBI
to oversee better imple- or any other independent
mentation of National agency regarding the irreg-
Rural Health Mission. The ularities committed in pro-
apex court was hearing an cessingand prchasing of
appeat filed by Mohd Sah drugs and surgical items.
 Diamonds,
goldfound in
Censor Board
CEO'S locker
AAMLR KHAN

MUMBAT, AUGUST22

CENTRAL Bureau of Film

Certification CEO Rakesh
Kumar's bank detailshave re-
vealed that he acquired
prop-
erly and ornaments worth Rs
4.69 crore, the CBI claimed
Friday, secldng extension ofhis
remand. His remand hasbeen
extended by seven days by the

Special CDI court.

In addition, the remand
application filed by Inspector
Suresh Iyerof the CBI claimed
that the CEO received a
"Lenovo laptop and an Apple
i-pad" on August 1 for
arrang-
ing the screening of
Thmil film
Anjaun at Infinity mall. "The
movie was examined on July
30,2014 and subsequently cen-
sor certificate was issucd
on
August 5,2014," the CIII plea
read. Kumar also received il-
legal gratification of Rs 50,000
for screening the movie
on Au-
gust 9, it alleged.
Accordingto the CBI, Ku-
mar's bank lockers
are in
Mumbai and Vadodra. It
seized 2kg gold jewellery and

diamonds worth Rs 65 lakh

from Kumar's locker jointly
held with his wife Surbhi in
Kalupur Commercial Cooper-
ative Bank, Vadodara.
The plea also revealed
a
property worth Rs 29.15 lakh
was purchased in Delhi's Uday
Parkin July2006in the name of
Kumar's mother and sold for
Rs 42.4lakhinJanuary2olo
Censuring the censor 1
Time to revampthe CBFC

THE censo board has often been in the

eye of a storm. Yet by
and large it has been censured either for banning certain films
or for imposing cuts whMi rQducers fin
qnpaJa4b4.Btjhi
time it has come under the scanner for most
unsavoury of all reasons.
It is indeed abominable that the CEO o the Central
Board of Film
Certiuiction(BFc),Rakesh
ICumar, has beM*srreste U by the CBI for
allegedly ac6epting bribes for providing 'learance certificates
s
to movies. That the highest official after the
chairperson of the CBFC
has been caught in a "cash-for-clearance"
scam, once again, under-
lines the urgency for a relook at the CBFC.
The CBFC is a statutory body under the Ministry
of Information and
Broadcasting and regulates
the public exhibition of films under the pro-
visions of the Cinematograph
Act 1952. Films can be publicly exhibited
in India only after they are certified by
the CBFC. Strangely while the
film industry and the board havebeen at daggers
drawn for a host of rea-
sons, money changing hands has only been
alluded to. Now some agents
and an advisory panel member too are believed to be
involved in the
bribery scandal. That there is actually
a 'pricelist' for clearing films
points at the rot
running deep that can't be stemmed by just
suspending
the CEO. The fact that
he allegedly demandedmoney for a Chhattis-
garhi film is
even more contemptible for regional cinema needs con-
stant
encouragement and patronage to survive.
The current imbroglio cements the lobby who argues
that the board
has outlived its utility Questioning the usefulness of
theboard, however,
might be an extreme viewpoint,
But the need to update the Cineniato-
graph Act 1952, which determinS
the certification process, has been felt
for some time. Hence, the Mudgal panel
was setup. While batting for cre-
ative
and artistic freedom, the panel recommended
that the members of
the advisory panels of the CBFC should be more professional
and have
adequate knowledge of cinema.
All very wel1 only professional integrity
must precede all other qualities. The
future of the multi-billion Indian
film industry can't be held hostage to the greed of
few corrupt officials.

Sudipto spills names
of Ministers, MPs
SAUGAR SENGUPTA" KOLKATA
what could give
Inbumps to top
goose
Thnamool
the Central Bureau of
Investigation) has revealed the
namesof"fourveryinfluential
OI
sidered
very close to Chief
Minister Mamata Baner3ee, in
connection with the multi
crore chit-fund scam.
The Clii was also trying to
know, under whose instruc
tions he had fled IColkata in
April 2013 after his business
collapsed and whether the
politicians he had named were
in touchwith him
while he was
on the run before being arrest
ed from Sonmarg in Kashmir,
officials who quizzed Sen for
hours on Friday said.
Curiously Sen had left a let
ter for the CM before he fled
Kolkata. The CRI has found
that only portions of the
letter
was leaked to the media while
the names of some "big fishes"
given in its annexure were
held back.
Incidentally, the Chief
Minister had soon after Sen's
escape had 'oneed"about
his whereabouts saying he was
somewhere in North India.
The Agency sources also
said that top East Bengal
Club
official Debabrata Sarkar who
was arrested on Wednesday
evening, following marathon
grilling, had told them about
two more Club officials
through whom the chit cash
was routed to other sources
V
OUT, UNDER WHOSE INSTRUCTIONS
HE HAD FLED KOLKATA IN APRIL 2013
AFTER HIS BUSINESS COLLAPSED,
AND WHETHER THE POLITICIANS HE
___
HAD NAMED WERE IN TOUCH WITH
HIM WHILE HE WAS ON THE RUN JP
BEFORE BEING ARRESTED FROM '-
SONMARG IN KASHMIR
Lit j
including business ventures, information on the issue" and
Sarkar had invested huge could soon interrogate the
lv in tourism industry in Goa SliM and Rh officials.
from his ill-gotten
money that On whether the CBI would
heextractedfromsenbyuslng interrogate State Textiles
threats. In fact the CE! had ear Minister SP Mukherjee and
her recovered from Sarkar's 'I\lnamoolRajya Sabha Ahmed
house "show-cause" letters writ Hassan Imran already
sum-
ten by Slim to Sen. The moned by the Enforcement
recovery of the let sW:i Directorate, sources said "soon
ter written by the "J',74Jejf/ a host of them would be
SEE! to Sen from 't4*1y4i,1/gC
called for Interrogation as
Sarkar'shouse tend CBI has enough evidence
ed to lend credence bits hands?'
to Saradha boss's Imran who was the
claim that h gave
,
editor of two pro-
money to many peo Trinamool newspapers
pie including Sarkar "to and channels was last year
manage" the SEBI and other sent to Rajya Sabha by the
market regulators. Trinamool Congress. The ED
The other two officials of Investigating the money-latin
thefootballclubwonjdalsobe
dering part of the Saradha
summoned soon, sources said
scam has reportedly found that
adding the CM sleuths would Hassan had bought over the
carry on further investigations media houses from Sudipto Sen
in Goa where Serfs
money was without having paid the price,
Investedinhospitalityindustry Meanwhile, a senior
The CBI sources alsosaid ThnamoolCongress leader and
quoting Sen that out of a State 'fransport Minister Madan
monthly !70 lakh given to Mitra whose name has repeat-
Sarkar, ?35 lakh was paid to a edly come up for his alleged
senior SEBI official and !l0 links with Sen was on Thursday
lakh was iven to "one Mr Sil admittedtoaprivatehospitalin
of the RBI.' The agency sources
Kolkata even as he complained
said they were "gathering more of breathing problems.
Sack Harsh Vardhau
over removal of AIIMS
vigilane officer: AAP
STAFF REPORTER
" NEW DELHI
attack on the
Stepping up its
Central Government over
the removal of AIIMS Chief
Vigilance Officer Sanjeev
Chaturvedi, the Aain Aadmi
Party (AAP) on Friday called for
the immediate sacking or resig
nation of Dr Harsh Vardhan.
AAP% national convener Arvind
lcejriwal alleged that Chaturvedi
was removed because
brought corruption cases of a
ihior LAS officef of Hithcjiai
Pradesh who worked as a
Deputy Director Administration
in AIIMS, to light.
"The Centre should take
cognizance of the fact. The IAS
officer against whom
Chaturvedi had initiated the
complaint is close to a senior
BJP leader. Chaturvedi started
taking action against the IAS
officerwhichiswhyClcould
register cases against him.
Because of these cases IAS
officer could not become Chief
Secretary of the State. The BJP
leader had complained about
Chaturvedi several times, but
his complaints were examined
and rejected:' said Kejriwal.
Kejriwal sought the inter
vention of Prime Minister
Narendra Modi in this matter.
He said that the logic given by
Harsh Vardhan that Chaturvedis
appointment required Chief
Vigilance Commission's (CVC)
Kejriwal alleged that
Chaturvedi was removed
because he brought
corruption cases of a
senior IAS officer of
Himachal Pradesh who
worked as a Deputy
Director Administration
he in AIIMS, to light
approval Was wrong as AIIMS is
not included in the list of
Government institutions that
rquire CVC's nod for
appointment of a CVO.
"If CVC's approval was
really an issue, the Minister
could have approached the
CVC and obtained the same,
rather than removing an hon-
est officer. All you require is
good intention and will,"
Kejriwal said. The AAP leader
added that there were attempts
to remove the Haryana cadre
Indian Forest Service Officer as
the CVO from Day 1.
"Under influence of some
powerful vested interests, there
were attempts to remove
Chaturvedi within a few
months of his posting. The
Parliamentary Standing
Committee took umbrage and
sought to know why it snould
not be treated as breath ofpriv
ilege of the ParliamenC he said.
Refund Rs49,000 cr to
investors Sebi to PACL
Amount more than twice the size of Sahara's; collective investment
scheme operator has 3 months to return money and wind
up
BS REPORTERS Appellate Tribunal against could havebeen even more them and their associates
klunibai, 22 August the Sebi order. They added IfPACL would have provid- for criminal conspiracy
the Interests of Investors
ed the details of the funds and cheating," a CBI

Saying
PACL Ltd ran would not be jeopardised. mobifised during the pen- spokesperson was quoted
a collective Invest- The refund Is to take od between April 1, 2012, as saylng at that time.
ment scheme, place within three and February 25, 20137 it Thecompany
mobillsing about 50,000 months, with a winding- said. claimed it was in the
crore, the Securities and up and repayment report In February this year, business of purchasing
Exchange Board of India to be submitted to Sebi the Central Bureau of and developing land,
(Sebi) has asked the com- within another 15 Investlgation adding the developed
pany to refund investors days, according to PACL has said (CBI) had reg- land was transferred to
and wind up operations. a 92-page order by Itwill move istered a case investors, who could sell
This is the biggest Sebi whole-time the Securities against the it for gains. The compa-
crackdown on a large- member Prashant Appellate promoters of ny is said to have paid
scale illicit money-pooling Saran. Tribunal PACL and Its commission of 7,893.8
scheme. At 49,100 crore, The order said against the sister firm PGF crore up to March2ol2. It
the amount concerned is the company had Sebi order Ltd. This fol- had 58.5 million cus-
twicethat collected by the mobilised 44,736 lowed the tomers, more than twice
Sahara group, which is crore till March 31. 2012, agency conducting an the 22 mullion demat
said to have mobilised and another 4,364 IS crore inquiry, as directed by the accounts in the entire
{24,000 crore. between Febmary 26,2013, Supreme Court, into alle- country. Of these, the
Speaking to television and Junels thls year. "The gations of collection of company was yet to allot
channels, PACL officials total amount mobilised huge deposits from the land to 46.3 million
said the company planned comes to whopping
a public. "The inquiry investors.
to move the Securities N9,100 crore. This figure resulted In a case against TumtoPagelfl
Sebi to PACL:
Refund
t49,000 cr to
investors
"It is difficult to believe apersoninuttarpradesh
wifipurchase 100-150 yards ofagricultural land
2,000 km away. The lack of maintenance of
proper records/data Is a clear indication the
activities of PACL are in the nature of a Porn!
scheme? the couit said.

Its order also noted out of a sample of 500

randomly selected customers, not a single one
had received land, even after eight years. The
company operated through a network of 250
associate companies to circumvent state lawson
land ownership, the order said.
"PACL Ltd and its promoters and directors,
including Tarlochan Slngh, Sukhdev Slngh.
Gurmeet SingJi and Subrata Bhattacharya, shall
wind up all the existing collective investment
schemes o
the company and refund the monies
collected under Its schemes with returns due to
Its investors, according to the terms of offer,
within a period ofthree months? it said.
The company also has to give details of the
trail of funds claimed to be refunded, the bank
account statements indicating the refunds and
acknowledgement recelpts from the investors.
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