Chennai : The automobile industry is still not out of the woods and the Reserve Bank of India's (RBI) move to increase the repo-rate by 45 basis points will make vehicle loans expensive, said a top official of the Federation of Automobile Dealers Association (FADA).Comparing the auto sales in April 2022 with that of April 2019 FADA President Vinkesh Gulati said the sector is still not out of the woods as overall retails were down by minus six per cent.Apart from PV (passenger vehicle) and tractors which grew handsomely by 12 per cent and 30 per cent, two/three wheelers, commercial vehicles are yet to turn green as these categories were down by minus-11 per cent, 13 per cent and 0.5 per cent, respectively, Gulati said."The month of April (2022) saw similar Auto Retail figures as March'22. While YoY comparison with April'21 shows all categories in green with high growth rate, it is important to note that both April'21 and April'20 were affected by nation-wide lockdown due to phase 1 and 2 of the Covid wave which witnessed no to negligible business. Hence a better comparison will be with Aprila¿19 which was a normal pre-covid month," Gulati said.He said the RBI's out of turn announcement of increasing repo-rate by 45 bps has taken everyone off-guard."The move will curb excess liquidity in the system and will make auto loans expensive," he added.While the passenger vehicle segment may be able to absorb this shock due to long waiting periods, the two wheeler segment is already reeling due to an underperforming rural market, vehicle price hikes and high fuel costs.High interest rates for vehicle loan due to RBI's move will be an additional blow for this segment. Certainly, this move will slow the speed of auto retail and dampen the sentiments further, Gulati said.On the other hand, Private consumption is regaining traction backed by a recuperating contact-intensive services and rising discretionary spending."With the Russia-Ukraine war continuing and China under lockdown, the global auto industry continues to witness supply crunch as semi-conductor shortage along with high metal prices and container shortage prevails. Customers of the PV segment hence continues to witness long waiting period," Gulati said.Referring to the Skymet's normal monsoon forecast and if the monsoon is evenly distributed there will have a positive rub-off on rural sentiment as farmers will be able to get better crop realisation thus increasing their disposable income.It will thus benefit tractor and two wheeler sales. This along with the marriage season in coming days will also see traction in auto retail.Overall, FADA changes its stance from extremely cautious to cautious in terms of slight recovery in near term—IANS

The automobile industry is still not out of the woods and the Reserve Bank of India's (RBI) move to increase the repo-rate by 45 basis points will make vehicle loans expensive, said a top official of the Federation of Automobile Dealers Association (FADA).

 Auto industry not out of woods, RBI's move to make loans costlier: FADA

New Delhi: Tech giant Google announced that it now requires personal loan apps in India to complete the additional proof of eligibility requirements and the deadline for this was set to end on Wednesday.The eligibility includes copy of their license by the Reserve Bank of India (RBI), and declaration that they are not directly engaged in money lending activities and are only providing a platform to facilitate money lending by registered Non-Banking Financial Companies (NBFCs) or banks to users."If you are licensed by the RBI to provide personal loans, you must submit a copy of your license for our review," the company said in a blogpost."If you are not directly engaged in money lending activities and are only providing a platform to facilitate money lending by registered Non-Banking Financial Companies (NBFCs) or banks to users, you will need to accurately reflect this in the declaration," it added.In addition, the names of all registered NBFCs and banks must be prominently disclosed in the app's description, the company said.Google also said to ensure that the developer account name matches the name of the associated registered business name provided through your declaration.The company mentioned that Indonesia and the Philippines, along with India, should complete the additional proof of eligibility requirements.Meanwhile, Google also said that it is all set to ban third-party call-recording apps from Wednesday as a part of the changes in its Play Store policies.According to media reports, Google claimed that it seeks to close alternative use accessibility application programming interfaces (APIs) for things other than accessibility. Accessibility Service APIs are tools that offer additional services that can help those with disabilities overcome challenges—IANS

 Tech giant Google announced that it now requires personal loan apps in India to complete the additional proof of eligibility requirements and the deadline for this was set to end on Wednesday.

Google deadline for personal loan apps in India to comply with new rules ends

Kolkata:&nbsp;Private lender Bandhan Bank will gradually increase its exposure to secured loans by enhancing advances to the housing and MSME sectors, its Managing Director and CEO Chandra Shekhar Ghosh said. Presently, the bank's exposure to MFI loans, which are unsecured, is 47 per cent, and the share of its advances to the housing segment is at 24 per cent, retail at two per cent and the micro, small and medium enterprises sector at 27 per cent, he said. Ghosh told PTI that "the lender will increase its exposure to secured loans and has set a target to increase disbursements to housing and medium-size MSME loans. Advances to MFIs and small-ticket MSME loans are unsecured". He said that 25 per cent of its MFI loans will be converted to formal MSME advances as the interest rates in the segment are similar to micro-credit or the loans given to self-help groups (SHGs). There will be "no impact on the profitability" of the bank as there is no difference in the interest rates, he said. In the last quarter of the previous fiscal, the bank clocked a net profit of Rs 1,902 crore and there had been no provisioning for bad loans, he said.By 2025, the bank will convert "26 per cent of group loans to joint liability group (JLG) advances, which are micro-credit given to batch of small borrowers". Responding to a query on the expansion of branches in the current fiscal, Ghosh said around 530 banking outlets will be opened across the country, taking the total number to more than 6,000. Recently, the private lender's holding company Bandhan Financial Holdings Ltd diluted 21 per cent of its stake in the banking entity to raise Rs 10,600 crore, out of which Rs 4,500 crore had been utilised to acquire a majority shareholding in IDFC Mutual Fund. Presently, the shareholding of the holding company has decreased to 40 per cent, which is in "conformity" to the regulatory norms, Ghosh said.Earlier, Bandhan Financial Holdings' stake was 82 per cent at the time of the listing of the bank on the stock exchanges, which subsequently decreased to 61 per cent with the acquisition of Gruh Finance. Ghosh said there is no need for a follow-on public offer as the bank is adequately capitalised.—PTI

Private lender Bandhan Bank will gradually increase its exposure to secured loans by enhancing advances to the housing and MSME sectors, its Managing Director and CEO Chandra Shekhar Ghosh said.

Bandhan Bank to increase exposure to secured loans

Paris: Coco Gauff on Tuesday defeated Sloane Stephens in straight sets in an all-American encounter to cruise into the women's singles semi-finals of the ongoing French Open 2022. The 18-seeded Gauff took 90 minutes to oust 2017 US Open champion, Stephens, 7-5, 6-2.Gauff is yet to drop a set in the tournament and has not been pushed beyond an hour-and-a-half in each of her five wins. Gauff dominated Stephens in both the sets and secured her semi-finals berth against first-time Grand Slam finalist, Martina Trevisan. Earlier in the day, Trevisan became the first Italian woman to reach the Roland Garros last four after defeating No.17 seed Leylah Fernandez in three sets 6-2, 6-7(3), 6-3.—ANI

Coco Gauff on Tuesday defeated Sloane Stephens in straight sets in an all-American encounter to cruise into the women's singles semi-finals of the ongoing French Open 2022.

French Open: Coco Gauff ousts Sloane Stephens to book semis spot

New Delhi: Housing Finance Company HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans by 5 basis points. The revision would come into effect from Wednesday itself.The upward revision in rates will essentially lead to an increase in EMIs for borrowers.The hike in rates came close on the heels of central bank RBI’s recent hike in repo rate by 40 basis points, besides giving indications it would raise rates further in the upcoming monetary policy review meets. On Wednesday, Punjab National Bank (PNB) too raised its marginal cost of funds-based lending rate by 15 basis points with immediate effect. Recently, banks such as SBI and Bank of Baroda too have hiked their lending rates across various tenures, as per reports.—IANS

Housing Finance Company HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans by 5 basis points. The revision would come into effect from Wednesday itself.

HDFC Raises Lending Rates, EMIs On Home Loans To Go Up

Housing Finance Company HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans by 5 basis points. The revision would come into effect from Wednesday itself.



New Delhi: The new rate will come into effect from June 10, it said on Thursday. Effectively, now home loan rates of the lender would start from 7.55 per cent. The rate revision by the lender comes a day after the Reserve Bank of India raised the key lending rates or repo rate by 50 basis points to tame high inflation, which essentially meant the cost of borrowings were going to rise. Repo rate is the rate at which the central bank RBI lends short-term funds to banks.Going ahead, many other banks and non-banking financial companies are expected to follow suit on the interest rate hike.—PTI

The new rate will come into effect from June 10, it said on Thursday. Effectively, now home loan rates of the lender would start from 7.55 per cent. The rate revision by the lender comes a day after the Reserve Bank of India raised the key lending rates or repo rate by 50 basis points to tame high inflation, which essentially meant the cost of borrowings were going to rise.

HDFC raises home loan interest rate by 50 bps

Lucknow: In another case of loan app harassment in the city in less than a week, a woman was asked to pay Rs 5,000 in the name of a loan she never applied for.The representatives of the firm also circulated her morphed obscene pictures. The woman, 36, who works in a multinational company, has lodged an FIR in the case.She said that she inadvertently clicked on a link which she got on WhatsApp. The link redirected her to a mobile app, Focus Loan, which claimed to offer instant loans. She said the app got downloaded on her phone and mentioned her details. Though she did not sign any agreement or apply for a loan, her bank account was credited with Rs 2,700. Later, on June 14, she found that her account showed a loan of Rs 5,000."Sensing foul, I immediately transferred Rs 2,700 to the account from which the money was credited to my account. However, a loan of Rs 2,300 still showed in my account and I started getting messages for payment. I again paid Rs 2,300 on June 18 thinking that the loan will close," the complainant said. "However, the miscreants started sending obscene messages to me. They procured my photographs which they morphed to look obscene and sent them to me and my acquaintances. After this, the miscreants started demanding more money," she said. SP, cyber cell, Triveni Singh said on Monday that they had received over a dozen similar complaints. "When these apps are downloaded, they get access to your contacts, video and photo gallery. Once the access is given, you have to share your PAN card and Aadhaar details. As soon as the documents are shared, you are given Rs 3,000 and if you pay within a week and keep the loan rolling, the amount can go up to Rs 8,000 per week," he said. "If a person fails to pay, the app managers who get access to photographs and contacts, send morphed images to contacts through WhatsApp," he said. —IANS

In another case of loan app harassment in the city in less than a week, a woman was asked to pay Rs 5,000 in the name of a loan she never applied for.

Woman In UP Harassed By Cyber Thugs With Morphed Pics

Bhubaneswar : On the request of Economic Offences Wing (EOW) of Odisha police, the Bureau of Immigration (BOI) has issued a lookout circular against Liu Yi, a Chinese national and main accused in a mobile loan app scam, police said on Tuesday.The accused used to run many illegal mobile loan apps like KOKO Loan, JOJO Loan, Golden Lightening Loan, Silver Kredit Loan, Gold Cash loan, Little Borrow Loan, Tap Credit Loan, Kredit bear Loan, Speedy rupee Loan, Xpress credit Loan, Kredit Plan loan, etc.In one app alone there are more than 1.5 lakh downloads. It is suspected that they cheated/ extorted lakhs of people across the country and particularly targeted lower middle-class people who were in need of small loans, especially during the difficult time of Covid-19 pandemic, said the EOW officials.The Chinese national had started his illegal business in India in 2019 from Bengaluru. His parent company was Jianbing Technology in Hangzhou China. He is the director of Omlette technology private limited, but indirectly controls/ owns eight other firms, including IWT India, Ocean trading, Yellow Tune Technologies private limited and Techlite development private limited, they said.The EOW officials also suspect that there are at least two more Chinese persons who used to assist him in his scam. They used to make employees or any needy person directors of the shell companies, but actually used to control the companies and bank accounts.They used many Call centers to make abusive calls to loanees. It is suspected that they are running such illegal loan apps in other countries too, especially in Thailand, said the officials.In this case, the EOW has already arrested five accused accomplices of the Chinese mastermind. EOW is in touch with various state police and has conducted raids in Mumbai, Bengaluru and Delhi, and frozen Rs 6.57 crore.During investigation, the EOW found that the apps offered small loan amounts ranging from Rs 3,000 to Rs 5,000 to its customers through their bank accounts through UPI or a link.After the money was credited to the customers' bank accounts, officials of the two apps would ask them to return the loan amount at a high rate of interest within a week. When the customers confronted them over the high-interest rate, the accused would abuse the customers, they added. --- IANS

On the request of Economic Offences Wing (EOW) of Odisha police, the Bureau of Immigration (BOI) has issued a lookout circular against Liu Yi, a Chinese national and main accused in a mobile loan app scam, police said on Tuesday.

 Lookout circular issued against Chinese national in fraud loan app scam

Mumbai:&nbsp;The Central Bureau of Investigation (CBI) on Monday filed its supplementary charge sheet in connection with the Rs 3,700 crore Yes Bank-DHFL loan fraud case.“A supplementary charge sheet has been filed today against Avinash N. Bhosale, Satyan Gopaldas Tandon, Metropolis Hotels LLP, ABIL Infraprojects Pvt Ltd, ABIL Hospitality Pvt Ltd, Arindam Developers LLP, Avinash Bhosale Group and Flora Developments Ltd,” the CBI said.The federal probe agecny had arrested Sanjay Chabaria of Radius Developers, in May. Radius Developers took loan of Rs 3,000 crore from Dewan Housing Finance Ltd (DHFL) on the pretext of financing a project in Mumbai.“Bhonsle, Goenka and Balwa were allegedly used their firms to channel money of the loan. Hence their premises were also raided,” the CBI had said.In March 2020, a case of loan fraud of Rs 3,600 crore was lodged by the CBI against Rana Kapoor, the promoter Director and CEO of Yes Bank for entering into a criminal conspiracy with Kapir wadhawan, the promoter Director of DHFL and others.Financial assistance was extended to DHFL by Yes Bank in lieu of substantial undue benefit to himself and his family members through the companies held by them.Between April to June 2018, Yes Bank Ltd invested Rs 3,700 crore in the short term debentures of DHFL. Simultaneously, Wadhawan paid a kickback of Rs 600 crore to Kapoor and his family members in the garb of builder loan of Rs 600 crore given by DHFL to DOIT Urban Ventures (India) Pvt Ltd, a wholly owned subsidiary of RAB Enterprises (India) Pvt Ltd in which Bindu Kapoor, the wife of Kapoor, is a director and 100 per cent shareholder.Kapoor’s daughters – Roshini Kapoor, Radha Kapoor Khanna, and Raakhe Kapoor Tandon were 100 per cent shareholders of DOIT Urban Ventures (India) Pvt Ltd through Morgan Credits Pvt Ltd.It was learnt that loan of Rs 600 crore was sanctioned by DHFL to DOIT Urban Ventures on the basis of a mortgage of a sub-standard property having very meagre value and by considering its future conversion from agricultural land to residential land.It was also learnt that DHFL had not redeemed the amount of Rs 3,700 crore invested by Yes Bank in its debentures till date. In addition to the above, Yes Bank also sanctioned a loan of Rs 750 crore to RKW Developers Pvt Ltd – a DHFL group company – for their Bandra Reclamation Project.The whole amount was siphoned off by Wadhawan since the entire amount was transferred by RKW Developers to DHFL without making investment in the Bandra project for which the loan was sanctioned. Thus, Kapoor obtained undue pecuniary advantage from DHFL through the companies held by his wife and daughters. It was also learnt that Kapoor had obtained illegal kickbacks directly or indirectly through entities controlled by him or his family members. —IANS

The Central Bureau of Investigation (CBI) on Monday filed its supplementary charge sheet in connection with the Rs 3,700 crore Yes Bank-DHFL loan fraud case.

 CBI files supplementary charge sheet in DHFL-Yes Bank alleged loan fraud case

Islamabad: Former Pakistan Prime Minister Imran Khan has said that it was not the job of the country's army chief to approach the US over the International Monetary Fund (IMF) deal."If these reports are correct that (Chief of Army Staff) General Bajwa is seeking America's help in getting IMF (loan) it means that the country is getting weaker," The Express Tribune quoted Khan as saying during an interview with a local TV channel on Friday.His statement comes as Gen Bajwa reached out to the US administration with a request for help in securing an early dispersal of a tranche of bailout package from the IMF in an effort to stabilise the dwindling economy of Pakistan.According to security sources, the army chief spoke by phone with US Deputy Secretary of State Wendy Sherman earlier this week, The Express Tribune reported.They said Gen Bajwa made an appeal to the White House and the Treasury Department to push the IMF to immediately supply nearly $1.2 billion that Pakistan is due to receive under a resumed loan programme."If America helps us in the current situation, what will it demand in return for help? I fear that the security of the country will be weakened," Khan remarked.Commenting on the development, the former premier said the report implied that no one including the international community and people of the country has confidence in the coalition government led by Prime Minister Shehbaz Sharif.Khan said the only way to steer the economy out of crisis and to reverse the "regime change operation" was to hold early and transparent elections.—IANS

Former Pakistan Prime Minister Imran Khan has said that it was not the job of the country's army chief to approach the US over the International Monetary Fund (IMF) deal.

 Not army chief's job to seek US help in securing IMF loan: Imran

New Delhi:&nbsp;Lok Sabha on Tuesday witnessed heated arguments between the Treasury and Opposition benches over the issue of farm loan waivers with Speaker Om Birla making an intervention and telling the members that advances under the Kisan Credit Card scheme are not written off. While asking a supplementary, NCP member Supriya Sule sought to know whether the government has any plans to waive off the loans given to the farmers under the Kisan Credit Card (KCC) scheme. Replying to the question, Parshottam Rupala, Union Minister of Fisheries, Animal Husbandry and Dairying, said it was for the first time in last so many decades that Prime Minister Narendra Modi has extended the scheme to fishermen and dairy farmers as the KCC was earlier confined only to agricultural farmers. He said its main aim is to provide small farmers institutional credit up to Rs 1.6 lakh without any collateral. Besides, Rupala said, if a farmer repays the loan promptly, he or she would get three per cent interest subversion from the central government and some state governments too provide interest subversion up to four per cent to the KCC borrowers. So, virtually a farmer is not paying any interest on his loan if it is paid on time, he said. Sule and other opposition members then said the minister was not giving the answer to the specific question on whether the government was planning to waive off the KCC loans taken by the farmers, to which Rupala reacting strongly. He said the opposition was only providing a lip service and the actual welfare work for farmers is being done by Prime Minister Modi. When other opposition members also protested, the Speaker tried to calm them down by saying that as per his knowledge, the loans given under the KCC are never waived off. Earlier, DMK members protested strongly when Union Minister of State for Fisheries and Animal Husbandry L Murugan said the Modi government has been pursuing welfare schemes as per the BJP election manifesto while some political parties and their state governments were not doing so. DMK members, led by its leader T R Baalu, protested the remarks made by Murugan, who hails from Tamil Nadu. Baalu accused Murugan of playing politics rather than properly replying to a bonafide question related to fishermen. The speaker then told the DMK members that the minister has neither named any political party nor any state and that they should not be offended.—PTI

Lok Sabha on Tuesday witnessed heated arguments between the Treasury and Opposition benches over the issue of farm loan waivers with Speaker Om Birla making an intervention and telling the members that advances under the Kisan Credit Card scheme are not written off.

Lok Sabha witnesses heated arguments over issue of farm loan waivers

New Delhi:&nbsp;The government is taking action against dubious digital loan apps, including those originating from outside the country, and also Indians who helped in setting them up, Finance Minister Nirmala Sitharaman informed Rajya Sabha on Tuesday. Most of the dubious apps are originating from one particular country and as a result a lot of borrowers are harassed and money is being extorted from by these apps, she said during the Question Hour while replying to a supplementary question. The minister was asked about reports of dubious digital loan apps backed by Chinese entities which do not follow RBI guidelines in giving loans. Sitharaman said the Ministry of Finance, Corporate Affairs, Ministry of Electronics and Information Technology and a few other departments, inclusive of Home, are all constantly discussing and working to ensure action is taken in these cases. "Only a couple of months ago particularly in the state of Telangana a lot of people have been put to harassment and action has been initiated. That's not to say we are not taking action elsewhere," she said. She also said the government is consciously taking action against Indian citizens who have also helped in establishing these companies and also what may be broadly defined as shell companies through which they are operating. So action in all these angles are being taken, she added. Reserve Bank of India (RBI) Governor Shaktikanta Das had recently said the central bank will soon come out with regulatory architecture for digital lending platforms. Most of the digital lending apps are not registered with the central bank and operate by themselves. There have been increasing cases of alleged suicides of borrowers due to harassment by a few of the operators of digital lending apps.—PTI

The government is taking action against dubious digital loan apps, including those originating from outside the country, and also Indians who helped in setting them up, Finance Minister Nirmala Sitharaman informed Rajya Sabha on Tuesday.

Taking action against dubious digital loan apps, says FM

Bhubaneswar:&nbsp;The Mumbai Police have taken three fraudsters who were recently arrested by the economic offence wing (EOW) of Odisha crime branch on transit remand, in connection with an illegal loan app scam case, officials said on Sunday.The accused have been identified as Nitin Mallik of Delhi, Rakshith, and Sushanth of Karnataka.The officials of VP Road police station in Mumbai have taken Nitin on remand while the SDJM Court here on Saturday allowed the West Region Cyber Police Station, BKC Bandra, to take Rakshith and Sushanth on remand, an EOW official said.On July 13, the EOW of Odisha police had arrested Mallik from Hari Nagar police station area of New Delhi while Rakshith and Sushanth were held from Karnataka on June 10.The accused were the directors of different illegal shell companies. The shell companies were used to transfer money from the bank accounts attached with the fake loan apps to the accounts of Chinese nationals through different channels, an official said.The official also said the shell companies of Rakshith and Sushanth were used to make threatening and humiliating calls and send obscene messages to victim persons who had availed loans through illegal loan apps and their contacts through a call centre from Bangalore.Similarly, Mallik with the connivance of 'Chinese masterminds' used to purchase and run virtual phone numbers of different service providers to be used for running and facilitating the lending and recovery through different loan apps.Nitin Mallik was in direct and regular touch with at least three Chinese nationals and used to get a huge salary for this job, the EOW officials claimed.—IANS

The Mumbai Police have taken three fraudsters who were recently arrested by the economic offence wing (EOW) of Odisha crime branch on transit remand, in connection with an illegal loan app scam case, officials said on Sunday.

 Mumbai police take three on remand in loan app scam case

Chennai: The Tamil Nadu police have arrested three persons including a Chennai-based financier for allegedly abducting a businessman who had failed to repay a loan of Rs 1 crore taken from the financier.
The arrested accused have been identified as Arockia Raj, the financier, Afrose, and Aravind his accomplices.
Saravanan, the real estate businessman, was abducted on Saturday evening by a gang allegedly led by a local financier Arockia Raj.
Saravanan had taken Rs 1 crore from Arockia Raj a few months ago but was unable to return the money.
According to the police, Saravanan received a call from Arockia Raj on Saturday about a new deal. The financier along with a few of his henchmen reached Saravanan's home, took the keys of two of his luxury cars, a watch and gold jewellery from there. Later they bundled Saravanan into a car and took off.
However, the family of Saravanan lodged a complaint with the police, which immediately swung into action.
The police team of T. Nagar police station searched the CCTV cameras through the road and intercepted the car on ECR. A special police team rescued Saravanan and recovered his two luxury cars.
Police told IANS that a manhunt is on for nine other people who were involved in the abduction.&nbsp;
—IANS

The Tamil Nadu police have arrested three persons including a Chennai-based financier for allegedly abducting a businessman who had failed to repay a loan of Rs 1 crore taken from the financier.

 Loan shark among three held for abducting businessman in Chennai

New Delhi: Against the backdrop of an attempted takeover of NDTV by Adani Media Works, a Securities and Appelate Tribunal (SAT) order of July 20, 2022 assumes significance. On Wednesday, NDTV's share price was hovering at Rs 388. The SAT has held that the loan agreement executed by the NDTV promoters with VCPL did not transfer control of NDTV to VCPL either directly or indirectly and, therefore, the findings given by the AO on the issue that the loan agreement is structured in such a way that in fact it transfers control to VCPL indirectly cannot be sustained. The findings in this regard were set aside. The question which needs to be decided is, whether the minutes and the contents of the minutes of August 5, 2015 of the Board of Directors of NDTV was required to be disclosed 83 under Clause 36 of the listing agreement, SAT said in its July 20 order.
In the instant case, the AO has found that the information relating to VCPL loan agreements were material and price sensitive in nature on account of de facto control by VCPL. "We have already held that there was no de facto control of VCPL on NDTV and, therefore, on this short ground the finding that the contents of the loan agreements were price sensitive in nature cannot be sustained," the Tribunal said. "However, considering the peculiar structure of the loan agreement, coupled with the fact that the exercise of the warrant option or the call option if invoked would have a bearing on the performance/operations of the company and therefore, to that extent, when the matter was discussed in the minutes of the Boards' meeting on August 5, 2015, the said minutes should have been disclosed under Clause 36 of the listing agreement. Such disclosure would enable the shareholders and the public to take an informed decision on the investment or disinvestment in the securities of NDTV," SAT said. In view of the aforesaid, we are of the view that NDTV by not disclosing the minutes of the meeting dated August 05, 2015 to the stock exchange violated Clause 36 of the listing agreement, SAT said. Thus, while confirming the order of the AO only with regard to the violation of the Clause 36 of the listing agreement we find that the penalty of Rs 5 crore is excessive. A maximum penalty of Rs 1 crore could be imposed under Section 23A(a). In the given facts and circumstances of the case, and considering the factors involved under Section 23J of the SCRA is concerned, we find that the AO himself has held that the quantifiable gain or unfair advantage accrued to NDTV or extent of loss suffered by the investors as a result of the default cannot be computed. Consequently, the penalty for mere violation of non-disclosure under Clause 36 of the listing agreement cannot be penalized to the maximum amount quoted in the provision. Considering the facts and circumstances, we are of the opinion that the penalty of Rs 5 crore is reduced to Rs 10 lakhs under Section 23A(a) of the SCRA, SAT said in an order. In view of the aforesaid, the impugned order dated June 26, 2018 passed by the WTM in Appeal No. 293 of 2018 VCPL vs. SEBI cannot be sustained and is quashed. The appeal is allowed with no order as to costs. Accordingly, the directions given by the WTM being excessive is set aside. Since a penalty has been imposed, we do not see any reason to issue any further direction under Section 11, 11B of the SEBI Act. The appeals are partly allowed with no order as to costs. Appeal No. 80 of 2021 NDTV vs. SEBI against the order dated December 29, 2020 passed by the AO is partly allowed. The violation of Clause 36 of the listing agreement is upheld. However, the penalty of Rs 5 crores is reduced to Rs 10 lakhs, the SAT said.
—IANS

Against the backdrop of an attempted takeover of NDTV by Adani Media Works, a Securities and Appelate Tribunal (SAT) order of July 20, 2022 assumes significance.

 SAT says control of NDTV not transferred to VCPL via loan agreement

New Delhi (The Hawk): On Friday, the ED announced that five locations in Bengaluru had been searched as part of the ongoing probe into the Chinese loan app issue.
According to an official, the case stems from 18 FIRs filed with the Cyber Crime Police Station in Bengaluru City against various companies and individuals for extortion and harassment of members of the public who had taken out minor loans using mobile apps operated by these companies.
As a result of the inquiry, it has become clear that the entities in question are under the control of Chinese people.
These organisations routinely use Indians whose identities have been stolen to pose as "directors" of their companies in order to launder criminal profits.
It has come to light that these organisations were conducting their illicit trade using a wide variety of merchant IDs registered with different banks and payment processors.
The search in this case was conducted after preliminary inquiry and with input from Bengaluru city's Central Crime Branch.
The search activity included the offices of the banks involved in the compliance with Razorpay Pvt Ltd.
During the search, it was discovered that the aforementioned businesses had used multiple merchant IDs with payment gateways to launder illicit funds and had provided fictitious addresses in their Know Your Customer (KYC) paperwork.
"As per section 17(1), these Chinese-controlled firms have Rs 78 Crore frozen from their merchant IDs and bank accounts. In this case, the total amount of money confiscated is Rs 95 crore "what the officer had to say.
(Inputs from Agencies)

On Friday, the ED announced that five locations in Bengaluru had been searched as part of the ongoing probe into the Chinese loan app issue.

Searches result in Rs 78 crore seizure by ED in Chinese loan app case

New Delhi (The Hawk): In a case involving bank loan fraud, where the total NPA reported by the Bank of India was Rs 91.50 crore, the Enforcement Directorate (ED) filed a chargesheet against seven defendants on Monday.
Three people—Raj Kumar Gupta, Radhika Mahajan, and Rajat Mahajan—as well as four organizations—Jhelum Industries, Jhelum Infra Projects India Private Limited, I.D Sood Ispat Private Limited, and New Jammu Flour Mills Private Limited—were named in the chargesheet presented to the Jammu Principal Sessions Judge.
On the basis of four FIRs filed by the Central Bureau of Probe, the ED launched a money laundering investigation (CBI).
The ED released a statement in which it claimed that investigations "revealed the commission of fraud, cheating, forgery, diversion and syphoning of funds and loans meant and allotted for business activity to company Jhelum Infra Projects Private Limited, I. D. Sood Ispat Private Limited, New Jammu Flour Mills Private Limited and Jhelum Industries (Partnership Firm), all concerns related to or part of Raj Kumar Gupta Group."
But loans went into default since they weren't used as expected.
The ED said, "Accused Gupta, together with members of his family, have floated multiple businesses in the name of his family members and in the name of his employees to divert and syphon off the cash credit loan acquired in the name of the aforementioned entities.
Earlier, the ED had attached the accused's properties, valued at Rs 20.21 crore.
In this case, additional inquiry is ongoing.
(Inputs from Agencies)

In a case involving bank loan fraud, where the total NPA reported by the Bank of India was Rs 91.50 crore, the Enforcement Directorate (ED) filed a chargesheet against seven defendants on Monday.

ED submits a chargesheet in a bank loan fraud case to the Jammu court

New Delhi (The Hawk): ABG Shipyard and 24 other people, including its CMD and other officials, have been charged with loan fraud in a case involving Rs 22,000 crore.
The accused used the funds to purchase properties across the nation, according to the agency's initial chargesheet in the case.
The CBI has determined that transactions totaling Rs 5000 crore were made through a variety of channels.
On February 7, the agency filed a complaint against ABG Shipyard, its CMD Rishi Kamlesh Aggarwal, CFO Dhananjay Datar Corporate Guarantor, and unidentified individuals.
State Bank of India, the complainant, claimed in its complaint that the accused had defrauded a group of 28 banks, led by ICICI Bank, resulting in a fraud of Rs 22,842 crore.
According to the CBI, the accused is accused of transferring sizable sums to its affiliated parties, after which adjustment entries were made.
By rerouting the bank loans, significant investments were made in its overseas subsidiary. Additionally, it was claimed that money taken from banks was used to buy enormous assets in the name of the related parties.
On February 12, searches were previously carried out at roughly 13 different locations, and this resulted in the recovery of several incriminating documents, including the borrower company's accounting records, purchase and sales information, share registers, various contract files, etc.
Additionally, LOCs were issued against the accused.
Numerous witnesses were questioned during the investigation, including representatives of the aforementioned private company and bank officials.
On September 21, the CBI detained the Promoter and Chairman at the time. Investigation revealed that the accused had colluded with others to incorporate a number of entities both inside and outside the nation with the aid of his staff, and had continued to syphon off and divert bank funds.
During the investigation, it was discovered that the accused fraudulently syphoned off a sizable sum of the bank/business fund of the aforementioned private company, creating a sizable number of personal assets in the form of immovable properties like opulent flats, multistory buildings, and lands (with a current value in crores).
The accused are accused of falsifying and misrepresenting the company's audited books as well.
The audited financial statements contained false entries regarding Corporate Guarantees, Overstatement of Subsidy Amount, and Non-Disclosure of Non-Fund Based Credit Facilities Obtained from Banks or Financial Institutions.
According to the CBI, its investigations have shown that ABG Shipyard's three Singapore-based offshore group entities obtained numerous bank guarantees fraudulently between 2010 and 2013 as a result of sham contracts, causing an alleged diversion and subsequent loss to the banks.
"By establishing Letter of Credits in favour of another Singapore-based company ostensibly for the import of designs and drawings for different cassels/hulls, ABG Shipyad is accused of embezzling public funds. Investigations have also uncovered fraud through the formation of a web of businesses, some of which were used to buy properties in prestigious locations like Mumbai and Surat. These include four opulent apartments in Mumbai, a residential tower with 14 apartments in Mumbai, and approximately 5–6 acres of commercial land in Surat "The chargesheet makes reference to the CBI.
(Inputs from Agencies)

ABG Shipyard and 24 other people, including its CMD and other officials, have been charged with loan fraud in a case involving Rs 22,000 crore.

 CBI files chargesheet in Rs 22,000 crore ABG Shipyard loan fraud case

New Delhi (The Hawk): Four people, including a former branch manager of the Bank of Maharashtra, were sentenced to seven years in prison by a special CBI court in Hyderabad in connection with a bank loan fraud case involving more than Rs 44 lakh.
The court sentenced C. Narayanaswamy, the Bank of Maharashtra's Khairatabad Branch's Branch Manager at the time, to seven years of rigorous imprisonment and a fine of Rs. one lakh.
Along with receiving a seven-year sentence of hard labour and a fine of Rs 75,000 each, three private individuals—K. Sridhar, managing partner of Divine Galaxy, Hyderabad; K. Ananda Rao, managing partner of Divine Galaxy, Hyderabad; and Nanda Gopal, proprietor of Sufi Impex Inc.—were also found guilty.
Amar Data Systems Private Ltd, Bangalore, has also been fined Rs. 1.50 lakh by the court for harming the bank.
In 2002, the CBI filed this case against C. Narayanaswamy and others on the grounds that the defendants conspired with individuals and approved loans totaling Rs 60 lakh.
The sanctioned amount was exceeded by Rs 44,51,304, which could not be recouped because the firm was not operating at the specified address.
As a result, the accused caused a loss to the bank and illegitimate financial gain for private individuals.
A chargesheet was submitted against the accused in 2003 following the conclusion of the inquiry. Since then, the trial has been ongoing.
Now, the Trial Court has convicted the aforementioned defendants after finding them guilty.
(Inputs from Agencies)

Four people, including a former branch manager of the Bank of Maharashtra, were sentenced to seven years in prison by a special CBI court in Hyderabad in connection with a bank loan fraud case involving more than Rs 44 lakh.

Bank manager and others involved in loan fraud face 7 to 4 years in prison

New Delhi (The Hawk): In connection with a case involving the prevention of money laundering involving a bank loan fraud of Rs 265.64 crore, the Enforcement Directorate (ED) announced on Thursday that they had attached Chandrashekhar Balkrushna Panchal of Archon Engicon Ltd. and other individuals' real estate worth Rs 77.28 crore.
On the basis of two FIRs filed by the Centre Bureau of Probe (CBI) EOB, Mumbai, the ED launched a money laundering investigation against Archon Engicon Ltd, Panchal, and others.
The CBI had filed charges against them under several IPC and Prevention of Corruption Act sections, alleging that Archon Engicon Ltd. had fraudulently defaulted on loan repayments to State Bank of India, IDBI Bank, and other consortium banks, resulting in an undue loss to the banks of Rs 265.64 crore.
Following an examination by the ED, it was discovered that the company was using several loan options from SBI and other consortium banks while diverting the money to other organisations and the personal accounts of the company directors.
In total, the ED has located and attached immovable properties worth Rs 77.28 crore that were held in the names of Archon Engicon Ltd and other connected parties.
Investigations into the situation are still ongoing.
(Inputs from Agencies)

In connection with a case involving the prevention of money laundering involving a bank loan fraud of Rs 265.64 crore, the Enforcement Directorate (ED) announced on Thursday that they had attached Chandrashekhar Balkrushna Panchal of Archon Engicon Ltd. and other individuals' real estate worth Rs 77.28 crore.

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