532. The Succession Struggle in the Tata Group

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532

The Succession struggle in the Tata Group

The Union Finance Minister, Mr. Arun Jaitely, on 16 September 2016, said that 49 per cent shares of the public sector IDBI bank would be sold very soon.

The unconstitutional nature of the decision was mentioned earlier in this work.

          There are reports that the Government of India is to sell pulses to the people all over India through the Post Offices.

          The newspapers, the TV channels, government and the ruling class have been saying that the government should not do business and that the business must be left to the businessmen.

Accordingly, the government handed over virtually all natural assets to the dominant members of the ruling class.

          The same people now say that the government must look after the sale of pulses to control the prices and to prevent shortages.

          Accordingly, the government has started selling pulses through the Post Offices.

          If the government wanted to prevent shortages, it could have asked all businessmen all over India to import necessary items after remitting the money in the banks.

          This would have increased the economic activity all over India.

          The importers could have been identified and foreign exchange outflow also could have been monitored.

          Instead, the government buys everything in bulk. This is dangerous because bulk buying involves big commission.

          The act of consuming the foreign exchange without remitting the equivalent money in the banks is a treacherous one.

          There is no authority to check the imports and compare it with the foreign exchange outflow.

          In fact, even 10,000 auditors would fail to check the foreign exchange outflow, actual imports and actual money collected through the post offices.

          The present man sent 531 letters to the President of India. The first point in the first letter wanted the the government to abolish the policy of bulk buying. But the government ignores this.

          Now the small traders say that they do not get any income for day today life.

They moan that there is no economic activity to do any business.

          The farmers cry that the imports strike them at their back.

They whine that they do not get remunerative prices.

The people also smell a rat.

They suspect that the foreign exchange is being siphoned off illegally.

          They moan that there are no people to communicate this to the government.

          Therefore, the government shall not descend to the level of the petty shops to sell groceries and the pulses.

          The Supreme Court of India cannot sit behind every deal of the government to check acts of corruption. But it has a duty to prevent bulk buying.

          If it cannot do this, it must enforce freedom of expression

          Therefore, the Supreme Court of India must do the needful.

The leader of the opposition, Mr. Raghul Gandhi, said that Prime Minister of India Mr. Narendra Modi is sitting in the pocket of 15 industrial houses.

Mr. Modi chose not to give a reply to his allegation.

On the same day, the Union Government reiterated its decision to convert the State Bank of India (SBI) into a giant bank by merging its associate banks with it.

The UPA Government had taken a similar decision. When the unconstitutional nature of the motive was mentioned, the then Prime Minister of India, Dr. Manmohan Singh, retreated.  Either the present Government has no time to go through the work or the Chief Justice of India is behind the decision.

The Directorate of Enforcement (ED) raided the premises of some political leaders in the Tamil Nadu state.

At the same time, the CBI raided the houses of some officials of the Tuticorin Port Trust.

The raids revealed that three or four political leaders possess not less than Re. one lakh crore assets abroad. They purchased assets all over the world. The agencies cited an island near Thailand and a mall worth Re.1900 crore in an Arab country and a few other assets as examples.

India, on 23 September 2016, signed an agreement with the Dessault of France to buy 36 Rafale fighter jets for $ 7. 87 billion (Re.59,000 crore).

Mr. A.K. Antony, former Defence Minister of India revealed that he was to buy at Re. 715 crore per aircraft. But the price, instead of falling down, increased to Re. 1600 crore per aircraft. He put the commission at 123 per cent.

Immediately, the government revealed that the agreement had an offset clause. Accordingly, the Dassault would invest Re.30000 crore in India in a joint venture called Dassault-Reliance Aerospace

“Modi reaches out to the down trodden”. This was the front page headline news of the New Indian Express dated May 26, 2016. On the same day, The Hindu came out with the editorial “Rafale takes flight at last”.

The Prime Minister, in turn, exhorted the people to unite to vanquish terror.

The Government of Chhattisgarh had paid $6.57 million to buy two Agusta helicopters. This amount included a commission of $ 1.57 million. This comes to 30 per cent commission. A Non Governmental Organization (NGO) revealed this on 23 September 2016.

The Special CBI Court for the 2G cases issued open arrest warrant against Mr. Ananda Krishnan and Mr. Ralph Marshall- two Malasian nationals in connection with the so-called Aircel Maxis case.

The Government of India directed the Central Bureau of Investigation (CBI) to examine the allegations of corruption in the purchase of three Embraer aircraft for the Defence Research and Development Organization (DRDO) of India.

There were allegations that some middle men clinched the $ 208 million deal with the Brazilian firm.

The 20 soldiers were killed when the terrorists attacked a military camp in Uri in the Kashmir State on 18 September 2016.

The Indian armed forces carried out a surgical strike on eight terrorist camps located one to three kilometer inside Pak occupied Kashmir (PoK) on 29 September 2016. Hundreds of terrorists were killed.

The media attributed the credit to Prime Minister of India Mr. Modi.

The Defence Minister said that there was nothing wrong in reaping the credit for the strike. But former Union Minister Mr. Sharad Pawar said that four similar strikes undertaken by the UPA government were not reported.

Evidently, even if a war takes place, the media would not, at times, report it.

The Union Cabinet, on 29 September 2016, decided to sell some Public Sector Undertakings (PSUs). The Bharat Pumps and the Hindustan Cables were some of them.

This is an unconstitutional decision. The reasons were given earlier.

The Government of India, on 1 October 2016, auctioned a part of the spectrum for Re. 53,000 crore. Everything was cornered by the promoters of the Prime Minister. Hundreds of players did not take part in the auction

According to some reports, spectrum worth 5.6 lakh core had been put up for sale. The media did not report the yield per year or the terms and conditions.

The Department of Income Tax unearthed an undisclosed income of Re. 58,378 crore in two years. Further Re.65000 crore of black money was disclosed under Income declaration Scheme. The media reported this on October 2, 2016.

China, on 13 October 2016, warned India that the act of boycotting Chinese goods would damage Sini- Indian ties. Thus, whether the Indian currency must be devalued or not would be decided by China and not India.

Union Minister Mrs. Nirmala Sitharaman immediately said that India would not ban Chinese goods although antidumping duties would be imposed. She added that the Indian IT and the pharma companies are facing difficulties in China.

A leader of the BJP, on 15 October 2016, disclosed that China is dumping its fire crackers in India without seeking clearance from the government.

This indicates that China is not bound by any Indian laws.

How do the Indian importers pay money to China? Does China remove Indian money without the approval of the competent authority? Does it exercise control over the Indian foreign exchange? The Supreme Court of India alone can give a reply.

During the BRICS summit at Goa, on the same day, India requested China to buy Indian assets. The euphemism was that China must invest in India.

China had been waiting for this offer.

Naturally, it agreed.

 The moment India permits, China would undertake the infrastructure works from bullet trains to highways, ports to warships and airports to aircraft. It would undertake all mining works and supply all communication equipment. It would make in India even the ammunition for the armed forces. China would supply all other small items virtually free of cost. It would even lend its foreign exchange. In fine, it would consider India as its own part and work for its development. Above all, it would maintain tranquility at the border until India exhausts all its foreign exchange.

It knows that India cannot murmur because of the commission received.

India, on 15 October 2016, signed an agreement with Russia to buy S-400 Triumf  air defence system for $6 billion. In all, India signed defence deals worth $24 billion.

India has disastrous experience with the MIG aircraft supplied by Russia. Iraq had similar experience with the Scud missiles.

Mr. Shashi and Mr. Ravi Ruia, on 15 October 2016, agreed to sell 98 percent shares of the Essar Oil and a port terminal at Vadinar to a consortium led by Rosneft, a Russian Company, for $13 billion. The agreement was signed in presence of the Prime Minister of India, Mr. Narendra Modi, and the President of Russia, Mr. Vladimir Putin during the BRICS summit at Goa. Apparently, the stamp duty was waived.

According to the agreement, the promoters of the Essar Oil would sell 98 percent of the shares.

As per the norms of the Stock Exchange, the listed companies must expose certain minimum shares – apparently, more than 24 percent- to the public. Here, just 2 percent shares are in the hand of the public.

 Apparently,  the stamp duty also has been waived.

The estimated total deft of the owners of the Essar Oil to the Indian banks is between Re.1.1 lakh crore to 1.3 lakh crore.

So, even if they pay the entire proceeds to the banks, the promoters cannot escape from the debt trap.

Some say that the loans given to the Essar Steel could be classified as nor-performing assets. This comes to about Re.35,700 crore. Is it possible? The Supreme Court of India alone knows the answer.

The circumstances that forced the promoters to sell their Essar Oil Company must be noted.

The promoters of the Essar Oil had been the members of the ruling class.

When the ruling class assumed to themselves the natural assets, the promoters of the Essar Oil did not get much.

When they apportioned the Public Sector Undertakings(PSUs) among themselves, they wanted the Shipping Corporation of India, SCI. But the ruling class ditched them.

Then they wanted money through the stock market. While others got a huge amount, the reports show that the promoters of the Essar Oil were offered bank loans.

Equal treatment might have made them as rich as their peers.

It is not easy for a private company to survive after giving over Re.  10,000 crore as interest every year.

Only consolation is that they did not send the promoters of the Essar Oil to jail just like Mr. Ramalinga Raju of Satyam.

The ruling class consumed the Satyam. Here, the Essar  Oil is given to a foreign company.

This is the price Indian pay for the un-constitutionalism in India.

Just like any other company, the Essar Oil is a public asset. Otherwise, the Supreme Court of India would not have transferred the public resources to them.  The government has a duty to protect it from the ruling class and from the Chinese and the Russian assaults.

Therefore, the Supreme Court of India must intervene and prevent the government from alienating the Essar Oil  to China or Russia.

The Reserve Bank of India lowered the repo rates from the present 6.5 percent to 6.25 percent. It is not customary for the banks to transmit the benefits to the borrowers. This time also they have not transmitted the benefits to them.

There are reports that the repo rates are bound to fall further.

The Indian imports have reached $250 billion per years. The exports are for $ 150 billion.

Thus, the Reserve Bank of India extracts or collects $260 billion from the importers and supplies $140 billion to the exporters.

The balance of $120 billion collected from the importers remains in the hand of the Reserve Bank of India.

The Reserve Bank of India must have transmitted this money to the Union Government every year.

The government, in turn, could have utilized the money for the development of roads, railways, ports and, airports. It could have utilized the money for the large scale public investments and for other public welfare measures.

This would have created jobs for the youth. Consequently, the murder for gain and robberies could have been contained.

The public servants could have been brought under the old pension scheme. All private sector employees also could have been brought under a pension scheme. The pay commission benefits could have been changed to a higher level.

The eligible teachers working in self-financing schools and colleges could have been brought under some sort of direct payment system.

In such a scenario, the inflation would have been a function of the remittances.

When the remittances increased, the money supply would have increased. Naturally, the money value would have fallen.

Consequently, the imports might have fallen and the exports might have increased. The balance of payment might have shifted in favour of India.

The farmers would have been happy because they would have got remunerative prices.

The borrowers would have been happier because their repaying capacity would have increased.

The prices of some commodities like petrol could have been maintained steady by adjusting the duties.

The vulnerable sections of the people could have been protected through suitable measures.

The repo rate must be a function of the money value. Therefore, the present repo rates have no economic sense.

Some countries and some middle men have established their business in India and they alone would have been affected.

The political leaders refrain from talking anything about these matters. The newspapers and the TV channels also do not discuss these matters.

When the present man pointed out this to the President of India, the government should have done the needful. As it functions as a money making enterprise of the ruling class, it simply hid the suggestions from the people.

There is no competent authority other than the Supreme Court of India to remedy the situation.

Therefore, the Supreme Court of India must do the needful to bring to light the hidden treasure.

A leader of the Congress Party, Mr. Dig Vijaya Singh, on 20 October 2016, said that Prime Minister Mr. Narendra Modi wanted to wage a war Against Pakistan to cling to power. Mr. Modi chose to ignore the allegation.

           The competent authorities raided seven textile shops named Pothys in Tamil Nadu State.

          Each shop employs hundreds of employees. One might think that the shops run on some ill-gotten money.

          Many people in India hold ill-gotten money.

          Some people get commission for imports. They are the people responsible for the policy decision of the government – the exchange rate and the exim policy included. Here, the importers do not know that  commission goes to some hidden people for their imports.

          Some others possess huge amount of money for exporting the natural assets like iron ore, rare earth mineral. Here,  under-invoicing takes place.

          The third category functions as middle men for importing defence equipment and others. Here over-invoicing takes place.

          The above three categories apart from preserving and protecting the system, divert part of their income to everyone possessing power. .

These are the main sources of corrupt money and black money in India.

The commission for appointments and contract works is not included..

Some better people invest part of their money in various entities like textiles shops, educational institutions retail shops and various kinds of industries and exhibit them as assets earned by industry and hard work..

Some others show this as the money received from the people working in various countries and start various entities.

If someone possess above kind of money, the ED can raid their entities in the order of the gravity of manipulation. They must certify that they do this only in the order of importance.

For ordinary tax evasions, everyone must be asked to post their day-to-day transactions in a website. If necessary, the government can detail a supervisor to every entity. If it is not feasible of compliance it shall not carry out such raids.

The raids shall not give the impression that the government is doing this to conceal its own illegalities, unconstitutionalities and other large scale robberies. This conclusion is based on the fact that many such raids do not reach their logical conclusion.

Further, the competent authorities do not publish the actual illegalities.

The raids shall not cripple the entities to give salary to its employees.

The raids shall not tarnish the image of the entrepreneurs in the eye of the right thinking people.

Businessmen have right to a life of dignity       

         

         

          Chief Justice of India T.S.. Thakur, on 23 October 2016, said that the Easy of Doing Business in India is decreasing and India occupies the 130 the position among 189 countries. He attributed this to the delay in dispensing justice.

          One day, the Supreme Court of India, cancelled the petrol outlets issued by the Members of Parliament. It said that the MPs distributed the outlets to their friends and relatives. It interpreted this as a corrupt practice.

          Within days, a private company distributed thousands of petrol outlets all over India. The court found it good.

          Then the present man wrote to the then prime minister of India that the Public Sector Undertakings (PSUs) would be sold against public money or ill-gotten money. Nine other points also were included in the letter.

          Immediately he said that the teachers must talk. Further, he devised a guideline for selling public assets. According to the guideline, the PSUs should not be sold to charge-sheeted companies.

          When the VSNL was privatized, the present man pointed out the unconstitutional conversion of public property into private property using public money.

          When the BALCO, IPCL and the HZL were given to some companies, the present man pointed out the violation of the guidelines.

          The then prime minister immediately realized the unconstitutional nature of the manipulations. Further, he did not want the ‘nationalization of pains and the privatization of gains’.

          But his colleagues did not allow him to retract. Therefore, he abdicated power.

          The UPA government apportioned the minerals and the spectrum among thousands of private players. The court cancelled everything and sent one of its ministers to jail.

          Further, earlier it induced the government to send Mr. Ramalinga Raju to jail. The restoration of his assets would enhance business confidence. Even now, the court is not ready for it.

A chief justice of India had been saying that the judges were not competent to hear economic matters.

But when the present man said that the body responsible for making the law should not carry it out the court did not understand the meaning of the word impersonal. Similarly, it does not understand the meaning of the word immutable. The court at times pretends that it neither understands law nor understands economics.

India extracts a huge amount of money through the Life Insurance Corporation of India (LIC), banks and Post Offices. One part goes into some companies free of cost and the other goes into all others – the public included for intolerable interest. The former flourish and the latter perish.

These are the main reasons for the bottom rank of India in the Easy of Doing Business List .

The police killed 20 militant people in the Andra Pradesh state on 26 October 2016.

The killings are apparently for money. Otherwise, the problem could have been solved through talks.

Tata Group, on 24 October 2016, removed Mr.Cyrous Mistry fom the post of the Chairman of the Tata Group and named 78 year old Mr. Ratan Tata as interim chairman. Mr. Mistry described the decision as an illegal one.

The present development gives the impression that Mr. Mistry removed a portion of the proceeds of the Tata Group to his own account or to the companies of his family.

The Tata Group has easy access to public money.

The LIC has been giving unlimited money to it in the pretext of buying its shares. Thousands of policy holders did not get even 1 per cent yield for their deposits in the LIC.

The Unit Trust of India (UTI) and banks also buy the shares of the Tata Group as and when it wants.

Further, the Union Government frames the policies taking into account the wishes of this Group.

When the banks and the other financial institutions realize interest from the borrowers over and above what the inflation warrants, the borrowers are virtually giving money to the Tata Group and some other companies.

Thus, the assets of the Tata Group are nothing but public blood.

Even otherwise, the Tata Group converted the assets of its companies into public assets through some illegal acts. In fact, it destroyed the private industry in India because many others followed suit.

It consumed the public sector VSNL before buying assets abroad.

This is like adding a drop of poison in a cup of milk. Thus its entire assets became public assets.

The Supreme Court of India is aware of it. But it has not attached its assets because it believes that it would be safe in its hands and that it would add to the prosperity of India.

Trouble with succession is common everywhere. This would come to the surface one day or other. The problem here is that Mr. Tata named a successor without writing a will.

Here, the struggle is not to apportion private assets. But the struggle is to run away with public assets. The value of the assets is falling down everyday sending shocks to some small investors as well.

Every man in the Tata Group is running away with whatever he gets. The present man had pointed out this long ago when one Mr. Dilip Pandse ran away with the money of the Tata Finance.

Therefore, the Government of India must step in and appoint a team of competent IAS officers to manage its assets without waiting for the succession war to come to an end.

 

This is letter No.532

          This letter is being submitted to His Excellency the President of India, Supreme Court of India, Chief Vigilance Commissioner, Indian Army and the Indian Air Force, and posted in the blog: www.howeverythinghappenedinindia.blogspot.com  on 29-10- 2016.

29 October 2016.

V. Sabarimuthu,

26-3 Thattamkonam, Vellicode, Mulagumoodu PIN: 629167, India. 

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