Since many of you are bored of NSEL,
I’ll stop writing about it NO! This is a matter of serious outrage and we can’t let these fellows go scot free!
Meanwhile convicts can remain in power, it seems. Even after a supreme court said they can’t, the government tried to push a bill that would allow convicts to be in parliament (which got rejected). And then, the government passed an ordinance, which gives them six months to get it through parliament; primarily to keep Laloo and a congress bigwig from having to vacate their seats.
In this picture, when the government is defending proven convicts, what hope do we have that the guilty parties in NSEL will be dealt with? Don’t answer that question.
I must however plod on and I’m increasingly getting bored of this one way street between everyone who understands this is a scam and regulators/CBI who think maybe they should wait a little bit longer. Something better give real fast, otherwise maybe I should be in the no-risk-all-the-return scam business, and I’ve learnt a few tricks from these people.
First up, the ED and EOW (acronyms for what should be regulators) have discovered that there is possible money laundering in NSEL. The money is gone.
And Anand Rathi has now been raided by the Income Tax department. Anand Rathi is owed Rs. 629 cr. by NSEL. The IT department is also going after all the investors (who gave money) and the borrowers (who received it), to ensure they have all declared this money on their books. This is a good move, because the one person you know will find the money is the income tax department.
For the sixth time, NSEL defaulted on its payments. It paid just 11.45 cr. out of a required 174 crore. This is now a joke. There is no settlement – they are just giving you the interest on the 5,500 crores,which probably adds up to Rs. 10 cr. a week. No one is giving any money back.
Carrying on with his awesome coverage, N Sundaresha Subramanian now profiles the MMTC exec Madan Gupta, who led the company to trade on NSEL and now they have nothing to show for it, quite literally.
From the washing-hands-off department, the auditor of FT, the company that promoted NSEL, has decided that uhm, you can’t trust the company’s audited results. But it could be a problem downstream:
A source close to Deloitte, however, said NSEL auditor’s decision to withdraw its report prompted them to do the same on FT. In FY12, an affiliate of Ernst & Young was the auditor to NSEL and Mukesh P Shah audited it in FY13. FT said that Deloitte had to withdraw its report as the auditors of NSEL withdrew their report on September 21. The audit report was signed before NSEL payment crisis broke out. NSEL’s revenues are regrouped in the FT’s balance sheet.
Financial Technologies is down 10% to 150 again after rising to 200+.
I think I could write a book on this by just linking to various sites.