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Singh Bros were alter egos acting with impunity

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Shivinder Mohan Singh, Malvinder Mohan Singh,

New Delhi, Oct 20 : How were the Singh Bros — Malvinder Mohan Singh (MMS) and Shivinder Mohan Singh (SMS) — the centrifugal forces behind the Rs 3,000 crore Religare Group fraud?

Working in conjunction with CEO Sunil Godhwani (SG), the troika stripped Religare Finvest (RFL) and other group companies bare through a craftily structured construct which allowed them to fly under the radar and even operate with impunity to avoid detailed regulatory supervision of the RBI.

It is pertinent to mention that at the time the loan was extended, SMS, MMS and SG were fully controlling RFL and were acting as its alter egos. Therefore, it is impossible that the aforesaid transaction was carried out without their knowledge and support. In addition to cheating, SMS, MMS and SG are also liable for the offence of criminal breach of trust since RFL and its shareholders had reposed their trust in the said erstwhile promoters and senior management of the parent entity REL and of RFL.

Since the Board of Directors of RFL was accustomed to the act as per their advice and instructions, they thus exercised deep and pervasive control over it.

In this context, it is pertinent to mention that RFL separately also extended loans cumulatively amounting to Rs 120 crore to Vitobha, Best and Devera and even those loans have not yet been repaid, which is indicative of yet another set of fraudulent transactions intended to siphon off monies and cause wrongful loss to RFL, and its shareholders.

Tara Alloys Ltd admits that a loan amount of Rs 85 crore was disbursed on May 24, 2017 by RFL to it taken as a Short Term Loan (for short “the STL”) which carries an interest @14 per cent p.a. Tara alleged that the amount was transferred back to RFL on May 24, 2017 through intermediary companies, allegedly at the behest of RFL to enable to repayment of loans obtained from it by other third parties, within hours of the receipt on the same day. It appears that upon obtaining the loan money from RFL, Tara transferred the same to some other entities and never intended to repay this loan to RFL.

Gurudev Financial Services Pvt. Ltd. admits that the loan amount of Rs 100 crore was disbursed on May 24, 2017 taken as STL, which carries an interest @14 per cent p.a. Gurudev submitted that 5th loan amount of Rs 100 crore obtained from RFL was further transferred to intermediary companies, alleged at the behest of RFL to enable a repayment of loans obtained from it by other third parties, within hours of the receipt on the same day.

It appears from the documents annexed that Gurudev transferred the funds received from RFL to some other entities and never intended to repay the loan to RFKL.

Annies Apparel Pvt Ltd also admits that the loan amount of Rs 100 crore was disbursed on February 1, 2017 by RFL to it as a STL, which carries an interest @14 per cent p.a. The said loan was to be repayable by Annies to RFL on March 31, 2017. Annnies submits that the loan amount was further transferred to intermediary companies, allegedly at RFL’s behest to enable a repayment of loans obtained from it by other third parties, within hours of the receipt on the same day. It appears from documents annexed that the amout has been transferred further by Annnies to other entities and never intended to repay the loan to RFL.

Shri Dham Distributors Pvt Ltd. (earlier known as Abhiruchi Distributors Pvt Ltd) admits that the loan amount of Rs 92.40 crore was disbursed on February 1, 2017 by RFL to it as STL which carries an interest @14 per cent p.a. and the loan amount further transferred to intermediary companies, allegedly at the behest of RFL, to enable a repayment of loans obtained from it by other third parties, within hours of the receipt on the same day. It appears from documents annexed to the reply that the amount has been transferred further by Shri Dham to other entities and it never intended to repay this loan back to RFL.

One needs to add that the all these aforesaid entities are clearly connected and were acting as one economic unit while internal inquiries point to the fact that they are controlled by the brothers’ stockbroker N.K. Ghoshal and the registered office address of the aforesaid entities is also the same – 2764/17, 2nd floor, Hamilton Road, Mori Gate, North Delhi, Delhi 110006.

The plea adopted by the entities is also identical i.e. funds disbursed by RFL were transferred to intermediary companies to enable a repayment of loans obtained from RFL by other third parties. It is evident from the above that while these entities admit receipt of money and admit that since inception of the transaction(s), they never intended to repay the money back to the complainant company. Instead as intended, they transferred the money to certain intermediary companies. The loan(s) advanced to the aforesaid entities were never repaid, and it appears from their replies that they colluded with other entities and amongst themselves (since they are acting as a single economic unit, controlled by one person) to conspire and abet in the siphoning away of money from RFL, thereby causing a wrongful loss to RFL and its shareholders.

In the present case it appears from their admission that RFL was cheated by the directors/persons controlling these entities, which in addition to its directors as the relevant time is believed to be Ghoshal) and the directors and persons controlling the so-called intermediary companies to which the money was transferred, and allegedly in collusion and conspiracy with the erstwhile promoters and senior management of REL/RFL. While the replies do not clearly mention the name of the intermediary companies, the documents annexed to the reply show transactions with many entities who have taken other loans from RFL under the Corporate Loan Book portfolio.

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Covid-19 corollaries on the dairy sector: CRISIL

Overall, demand for milk and dairy products would be lukewarm in the near term, so prices are unlikely to boil over, according to the report.

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dairy industry

New Delhi, May 26 : Supply chain disruptions in the early weeks of the nationwide lockdown, and bread-and-butter issues for hotels, restaurants and cafes, have materially reduced demand for dairy products.

This is despite supply of most dairy products continuing during the lockdown, since they are categorised as essentials.

The shuttering of hotels and dine-ins has also dried up off-take of skimmed milk powder and khoya.

According to report by CRISIL Research on the state of dairy industry and supply chains, products that can’t be made at home easily – such as cheese, flavoured milk and also khoya – haven’t found their way back to the dining table in the same quantities as before the lockdown.

Demand for ice creams, which usually peaks in summer (accounting for 40 per cent of annual sales) has just melted away. Rural areas, which are feeling the income pinch more, seem to be staying off butter and ghee, the report by global analytics firm has said.

To be sure, since the third week of April, supply chains have turned smoother, so demand for staples such as milk, curd, paneer and yogurt are expected to see a quick rebound, leading to on-year expansion in sales, CRISIL said.

The pandemic, however, may sour the business for unorganised dairies because of pervasive contamination fears.

Conversely, as consumers shift, revenues of organised dairies and packaged products should fatten.

Overall, demand for milk and dairy products would be lukewarm in the near term, so prices are unlikely to boil over, according to the report.

Large brands such as Amul and Mother Dairy had already hiked retail milk prices by 4-5 per cent last fiscal. They may not serve an encore.

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445 people died from Australia bushfires smoke: Experts

Melbourne, Sydney and Canberra all had periods where they had the worst air quality in the world as a result of the smoke.

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Arogya Setu App

Canberra, May 26 : Smoke from Australia’s devastating 2019-20 bushfires killed at least 445 people, health experts revealed on Tuesday.

Fay Johnston, a public health expert from the Menzies Institute for Medical Research at the University of Tasmania, told the bushfire royal commission on Tuesday that her team estimated that 445 people died as a result of the smoke that blanketed much of the nation’s east coast, reports Xinhua news agency.

It takes the total death toll from the 2019-2020 bushfire season, which has been dubbed the “Black Summer”, to nearly 480 after 34 people lost their lives directly.

According to modelling produced by Johnston and her colleagues, 80 per cent of Australians were affected by the smoke at some point, including 3,340 people who were hospitalized with heart and lung problems.

“We were able to work out a yearly cost of bushfire smoke for each summer season and… our estimates for the last season were A$2 billion in health costs,” Johnston said.

“There’s fluctuation year to year, of course, but that was a major departure from anything we had seen in the previous 20 years.”

Melbourne, Sydney and Canberra all had periods where they had the worst air quality in the world as a result of the smoke.

Commissioners also heard on Tuesday that the increasing frequency of significant bushfire events in Australia meant that survivors no longer feel safe during the recovery phase.

“Disasters are no longer perceived as rare events, they are often seen as climate change, and they’re part of our new reality,” Lisa Gibbs, a child welfare expert from the University of Melbourne, said.

“We don’t know how that is going to affect recovery because the seeds of hope are a really important part of people’s ability to deal with what has happened and to get back on track.”

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Rising urbanization likely cause of heavy rainfall in South: Research

Their findings were reported in the ‘Quarterly Journal of Royal Meteorological Society’ on May 18, 2020.

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IMD heavy rains predict

Hyderabad, May 26 : A team of researchers at the University of Hyderabad (UoH) have discovered a link between heavy rainfall in several parts of south India and a growing urbanisation in the region.

A team led by Prof. Karumuri Ashok from the Centre for Earth, Ocean and Atmospheric Sciences of the University of Hyderabad, examined whether a common factor, the changing ‘land use land cover’ (LULC) in these states, has any implications for the heavy rainfall events.

Over the past few years, many heavy rainfall events have been reported in cities of south India. Prominent among them are the extreme rainfall that created havoc in Chennai and nearby areas of Tamil Nadu in December 2015, the heavy rainfall over Hyderabad and adjoining regions in Telangana in September 2016, and the extreme rainfall event in Kerala in August 2018.

Notably, these three states differ in their geographical locations, and also the season in which they receive rainfall. Kerala, located on the southwest Indian coast off the Arabian Sea receives heavy rainfall during the summer monsoon from June-September.

Tamil Nadu, off the Bay of Bengal, receives rainfall mainly during the northeast monsoon (October-December). The land-locked state Telangana receives the bulk of its annual rainfall during the summer monsoon season.

A UoH statement stated that their study showed the precipitation during heavy rainfall events in these states has significantly increased from 2000 to 2017. Using the LULC data from ISRO, and by conducting 2 km resolution simulation experiments of twelve heavy rainfall events over the states, the researchers found distinct LULC changes in these three states, which led to higher surface temperatures and a deeper and moist boundary layer. These in turn caused a relatively higher convective available potential energy and, consequently, heavier rainfall.

The study also suggests that increasing urbanization in Telangana and Tamil Nadu is likely to enhance the rainfall during the heavy rainfall events by 20%-25%. Prof. Ashok feels that improving the density of observational rainfall and other weather parameters may help in forecasting extreme rainfalls at city level.

Their findings were reported in the ‘Quarterly Journal of Royal Meteorological Society’ on May 18, 2020.

Prof. K. Ashok and his Ph.D. student Mr. A. Boyaj who is the first author, are both from the Centre for Earth, Ocean and Atmospheric Sciences of the University of Hyderabad. The work was done in collaboration with Prof. Ibrahim Hoteit and Dr Hari Prasad Dasari of King Abdullah University of Science and Technology (KAUST), Saudi Arabia.

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