Archives for 2022

Mehul Choksi

New Delhi: Sebi on Monday barred fugitive businessman Mehul Choksi from the securities markets for 10 years and imposed a fine of Rs 5 crore on him for indulging in fraudulent trading in the shares of Gitanjali Gems Ltd.

He has been directed to pay the penalty within 45 days, as per the Securities and Exchange Board of India (Sebi) order.

Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both of whom are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than Rs 14,000 crore.

Both Choksi and Modi fled India after the PNB scam came to light in early 2018. While Choksi is said to be in Antigua and Barbuda, Modi is lodged in a British jail and has challenged India’s extradition request.

The present proceedings emanate from a common show cause notice issued by Sebi in May 2022 against Choksi pursuant to an investigation by the regulator into the alleged manipulative trading in the scrip of Gitanjali Gems. The regulator conducted an investigation into the trading activities of certain entities in the scrip of the company for the period July 2011 to January 2012.

In its order, Sebi said that Choksi had funded a set of 15 entities known as ‘front entities’, who were directly or indirectly connected with him and with each other and who had taken position in the scrip of Gitanjali Gems both in the cash and derivative segments during the investigation period. He had used them as front entities for manipulation in the company’s scrip.

It was observed that the fund transfers by the company to front entities were to the extent of Rs 77.44 crore, out of which funds to the tune of Rs 13.34 crore were used by front entities to trade in the scrip.

The regulator noted that immediately prior to the investigation period, the shares of Gitanjali Gems, excluding promoter holding and holdings of banks/ financial institutions/ FPIs, available to the general investors was 28.96 per cent for the quarter ended June 2011. This was reduced to 19.71 per cent in the quarter ended September 2011. Subsequently, the shares available to general investors increased to 25.36 per cent post the investigation period.

This indicates that Choksi, through front entities, tried to corner the shares available in the market during the investigation period to reduce the shares available for general investors which subsequently increased after the front entities sold the shares in the market. Further, the front entities cornered the position limits in the scrip of Gitanjali Gems by building up substantially large position in the derivatives segment.

“I find that the above mentioned findings coupled with the noticee’s (Mehul C Choksi) failure to rebut the said findings, clearly establishes the noticee’s role in creation of false and misleading appearance of trading in the scrip of GGL by using and funding the front entities in executing manipulated trades.

“I thus find that the noticee has violated the provisions of… PFUTP (Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations,” Sebi Whole Time Member Ashwani Bhatia said in his 20-page order.

Accordingly, the regulator has restrained Choksi “from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner whatsoever and is further prohibited from accessing the securities market, for a period of ten years … and the noticee shall pay a monetary penalty of Rs 5 crore.”

In February this year, Sebi had prohibited Choksi from the securities markets for one year and levied a fine of Rs 1.5 crore on him for violating insider trading rules in the matter of Gitanjali Gems.

In February 2020, the regulator slapped a total fine of Rs 5 crore on Choksi, Gitanjali Gems and another individual for violating various regulations, including listing norms, in connection with the massive fraud on PNB.

New Delhi: The Delhi Police on Monday searched the houses of The Wire’s founding editor Siddharth Varadarajan and deputy editor M K Venu in connection with a now retracted story related to BJP’s IT department head Amit Malviya, officials said.

A senior police officer said electronic devices belonging to the two senior editors of the news portal will be examined.

No arrests have been made yet in the case, the officer said.

Police had on Saturday filed an FIR against the news portal and its editors on a complaint by Malviya accusing the media outlet of “cheating and forgery” and “tarnishing” his reputation.

Malviya had on Friday said he would pursue criminal and civil proceedings against the portal over stories, since retracted, that insinuated that the BJP leader enjoyed the privilege on Meta platforms of having any post taken down which he believed was against the BJP’s interests.

Malviya’s complaint was filed with Delhi Police’s special commissioner (crime) against The Wire, its founding editors Siddharth Varadarajan, Sidharth Bhatia and M K Venu, deputy editor and executive news producer Jahnavi Sen, the Foundation for Independent Journalism and other unknown people.

The Wire has also filed a police complaint against its former consultant Devesh Kumar in connection with the story related to Malviya.

Morbi: Shivam, aged 10 years, was enjoying the thrill of the “Jhulta pool” or suspension bridge, a famous tourist spot in Morbi, with his family members as he wanted to enjoy Diwali vacations, but hours later he returned to Rajkot with bodies of his parents and brother- all victims of the bridge collapse incident in which 134 people lost their lives.

Shivam survived as he caught hold of a snapped cable but his parents and elder brother were not so lucky.

For Amina Banu also the visit to the bridge turned into a nightmare that she will perhaps not be able to forget in her life. She had gone to the bridge with 36 people from her extended family, six of whom died in the tragedy.

Rajkot BJP MP Mohan Kundariya told PTI that he lost 12 relatives in the tragedy.

Many survivors have lost more than one member of their families in the tragedy.

“I went to the bridge with 36 people from my family along with my children. Six members of my family including my cousin and her children died in the incident,” Banu said.

Recalling the horrific incident, Banu said nobody came for help initially and they were on their own.

“They charged a ticket of Rs 17 per person. Why did the company allow so many people on the bridge? The company said they had spent Rs 2 crore on renovating the bridge. Is the life of people worth Rs 17?” she asked.

A resident of Rajkot, Shivam was visiting his maternal grandparents in Morbi. He, his parents, and his elder brother were on the bridge which was crammed with people when the tragedy struck on Sunday evening.

“There was a huge crowd when the bridge suddenly collapsed. I survived because I caught hold of a hanging cable and slowly climbed up. But my brother, father and mother are still missing,” he told reporters.

Later, his relatives from Rajkot rushed to Morbi and found the bodies of Shivam’s missing family members among those who were fished out of the river.

The bodies were taken to Rajkot with the young child accompanying them.

In a video that has gone viral on social media, some youngsters were seen kicking and shaking cables of the bridge apparently to scare other tourists, minutes before the collapse.

One of the survivors Mehul Raval said there were at least 300 people on the bridge when its cables snapped and it collapsed into the river.

“The bridge suddenly caved in when we were on it. All the people fell into the river. The bridge collapsed mainly because it was overcrowded,” Raval told reporters at the Morbi civil hospital, Mohan Kundariya told PTI that he lost 12 relatives in the tragedy.

“They had come to the picnic spot on Sunday but they perished in the tragedy,” he said.

A Morbi resident also said there were at least 300 people on the bridge at the time of the incident.

Ironically, the bridge was reopened for the public a few days back after renovation, he said.

“Majority of the victims were children who were enjoying Diwali vacation. Locals rushed to the spot immediately after the incident and pulled out many people from the river alive,” he said.

Another resident said the incident opened the wounds of the Machchhu dam tragedy of 1979 when thousands of residents died in floods.

“All the residents living nearby the river came for rescue and saved many lives. This is the first major incident in Morbi after the 1979 dam breach. This bridge collapsed due to overcrowding. The rescue was hampered because of low light in the evening,” he said.

Former BJP MLA of Morbi, Kanti Amrutiya, also joined local rescue teams.

“I pulled out many people alive, but many others were already dead when they were pulled out. Everyone is doing their bit to help people,” he said.

The nature and scope of the tragedy has shaken the nation.

The Morbi district website described the suspension bridge as an engineering marvel built at the turn of the century, which reflects the progressive and scientific nature of the rulers of Morbi.

This was built to give a unique identity to Morbi using the latest technology available in those days, in Europe. The bridge was 1.25 metre wide and spans 233 metre on the Machchhu river connecting Darbargadh Palace and Lakhdhirji Engineering College, it says.

Kochi: A Kerala court on Monday framed charges of destruction of evidence against actor Dileep in the 2017 actress assault case in which he is one of the accused.

The court framed charges under Sections 201 (causing disappearance of evidence of offence) and 204 (destruction of electronic record or document to prevent its production as evidence) of the Indian Penal Code against the actor and his businessman-friend Sarath, Dileep’s lawyer Philip T Varghese said.

The court read out the charges to the actor and his friend who denied the same and thereafter, the case was listed on November 3 for scheduling of witnesses by the prosecution, Varghese said.

From November 10 onwards, the examination of witnesses in connection with these two additional charges would commence, the lawyer said.

On October 28, the court had dismissed the actor and his friend’s pleas in which they had claimed that the charges were not made out against them.

These charges were invoked against them by the police in an additional charge sheet filed by it in July this year after carrying out a further probe into the 2017 case based on certain revelations made by director Balachandra Kumar.

The sexual assault survivor, an actress who has worked in Tamil and Telugu films, was allegedly abducted and molested in her car for two hours by the accused, who had forced their way into the vehicle on the night of February 17, 2017 and later escaped in a busy area.

The entire act was filmed by the accused to blackmail the actress, according to the prosecution. There are 10 accused in the case.

Morbi: Four persons were arrested on Monday in connection with the collapse of the cable suspension bridge on the Machchhu river in Morbi in Gujarat in which 134 people were killed, police said.

“We have arrested four persons so far, the investigation is going on,” Rajkot Range IG Ashok Yadav told PTI.

He refused to elaborate saying the police will soon brief the media.

Police have registered an FIR on charges of culpable homicide against agencies given the task of maintenance and operation of the bridge in Morbi city which collapsed on Sunday evening.

The case was registered under Indian Penal Code Sections 304 (punishment for culpable homicide not amounting to murder) and 308 (attempt to commit culpable homicide).

The FIR, lodged by ‘B’ division police inspector Prakash Dekivadia, stated that the bridge over the Machchhu river in Morbi town was not in use for nearly eight months as the local administration had roped in a “private agency” for its maintenance.

Alipurduar: A college student allegedly died by suicide in West Bengal’s Alipurduar district after a video of her stealing chocolates at a shopping mall went viral on social media, police said on Monday.

The body of the third-year undergraduate student was found hanging in her house in Subhas Pally in Jaigaon police station area on Sunday, they said.

The body was sent for post-mortem examination and an investigation was underway, officer-in-charge of Jaigaon Prabir Dutta said.

The girl went to a shopping mall in the area on September 29 along with her sister, and she was caught while getting out of it after allegedly stealing chocolates, her father said.

She paid the price of the chocolates and apologised to the store authorities, he said.

However, people at the store made a video of the whole incident and posted it on social media which went viral, he added.

Out of humiliation, she took the extreme step, the father said.

Locals staged protest outside the shopping mall after the body was found, demanding strong action against those who made the video and posted it online.

The shopping mall authorities could not be reached immediately for comment.

Prayagraj (UP): The Allahabad High Court, which is hearing a petition in connection with a 1991 Kashi Vishwanath temple-Gyanvapi mosque suit in Varanasi, was on Monday informed by the Archaeological Survey of India (ASI) that it will obey the court’s direction in the matter.

Justice Prakash Padia also extended till November 30 the interim stay on a Varanasi court order directing the ASI to conduct a survey at the Kashi Vishwanath temple-Gyanvapi mosque complex and further proceedings in this case.

Following a court order on October 18, an affidavit was filed by the Director General of the ASI.

It stated that the ASI is ready to obey the court directions, according to sources.

Justice Padia fixed the next hearing on November 11, 2022 on the petition of Anjuman Intezamia Masajid, the Gyanvapi Mosque management committee of Varanasi and others challenging the maintainability of an original suit filed in 1991 in the Varanasi district court.

The original suit sought restoration of the ancient Kashi Vishwanath temple at the site where the Gyanvapi Mosque currently stands.

The petitioners claimed in the suit that the mosque is a part of the temple.

former BJP MP Subramanian Swamy

New Delhi: The Delhi High Court on Monday sought a comprehensive affidavit from the Centre assuring it would address security concerns at the private residence of former BJP MP Subramanian Swamy, a ‘Z category’ protectee.

The court was informed by the central government that a security review of Swamy’s private house, where he would be residing after vacating the government-allotted bungalow, has been undertaken.

The senior politician — a former Rajya Sabha member — would get whatever he is entitled to as a ‘Z category’ protectee residing in a private space, the government said.

The Centre’s lawyer said “skeletal security” has been provided at Swamy’s private residence and the “main guard would move along with him” from the government bungalow.

If there is no place to set up adequate infrastructure such as a guard room six security personnel would be placed on rotation basis at Swamy’s private house, the lawyer said.

“The day he intimates us, the entire set up will move to his new house,” the lawyer said.

The government’s response was to Swamy’s claim that in spite of an earlier assurance, the Centre is yet to make adequate security arrangements at his private accommodation.

“Whatever his entitlement is, he will get it. Whatever the standard procedure is for private spaces,” the Centre’s lawyer told the court as he claimed that a “compliance affidavit” has been filed in the matter.

Justice Yashwant Varma, however, questioned the Centre over the absence of infrastructure facilities at the private residence as well as when the arrangements would be put in place and how it would “rotate six guards”.

The lawyer said that he would put Centre’s stand in relation to court’s queries on an affidavit.

He stated that “it is better that I put everything on the affidavit. Because for us to provide such guard rooms to each and every private individual…”. The court, however, said, “He is not every private individual, he is an individual to whom you have granted Z category.”

The lawyer assured the court that all adequate arrangements would be done according to applicable protocol.

“(Centre’s counsel) prayed for and is granted time to file a better comprehensive affidavit in order to assure the court that the security concerns pertaining to the petitioner shall be duly met,” the court ordered.

Senior advocate Jayant Mehta, appearing for Swamy, contended that security-related facilities are yet to be provided at the former MP’s private residence and while October 26 was the last date given to him to vacate the government bungalow, authorities “visited” the new premises only after the matter was mentioned before the high court on October 27.

The Centre’s counsel asked the court to note that there were festivals when “there is heightened security risk”.

However, the court asked the counsel not to make “generic statements”.

On September 14, the court had directed Swamy to hand over possession of his government bungalow to the estate officer within six weeks, noting that the allotment was made for a period of five years, which had come to an end.

Swamy, whose term as a member of the Upper House of Parliament came to an end on April 24, had earlier moved the high court for re-allotment of the government bungalow citing security threats to him.

While disposing of Swamy’s petition seeking re-allotment, the court had recorded that there was no material shown which mandated and required the allotment of government accommodation to a ‘Z category’ protectee.

Additional Solicitor General Sanjay Jain, representing the government, had submitted that while Swamy continues to remain a ‘Z category’ protectee, the policies and guidelines which govern such protectees does not obligate the government to also provide residential accommodation from the general pool.

He had said while the Union government would continue to extend ‘Z category’ protection to him, subject to due periodical review, it would not be possible for the government bungalow to be realloted to Swamy.

Jain had said in any case, the petitioner has his own residential premises where he can possibly shift and the protecting agencies would take all further steps in that premises as may be warranted to ensure his safety and security.

The matter would be heard next on November 3.