Saturday, September 19, 2009

Congress siphoned Satyam's cash to fund elections

sep 18th, 2009

this was my contention all along. my theory:

1. samuel and raju collaborated to get maytas the hyderabad metro
2. maytas promised to pay the govt some rs. 2000 crore; the govt gave 300 acres of prime property in hyd to maytas
3. the understanding was that maytas would make money from soaring real estate prices, and that rs. 5000-7000 crore would be diverted to samuel for buying the 2009 election
4. well, the real estate bubble burst, but samuel told raju: "i don't care, i need my rs. 7000 crore, right now. give it to me or i'll bump you off and your entire family too".
5. so raju did what he did.

---------- Forwarded message ----------
From: Solar


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One person who would certainly be rooting for Jagan to be the next chief minister would be one B Ramalinga Raju, the former chairman of Satyam Computers who is now an occupant of Hyderabad's Chanchalguda jail. Raju has been accused of fraud, forgery, cheating and insider trading. His scandal broke when he admitted that Rs 7,000 crore had disappeared from the company and subsequently surrendered to the police. Investigators found that the money had disappeared not because the accounts had been inflated, but because it had been siphoned off. Opposition leader N Chandrababu Naidu, on the floor of the Andhra Assembly, charged Raju with giving the money to 14 of Jagan's companies for laundering.

YSR was certainly visionary in that he could see just how much money the Congress would need to contest the Lok Sabha elections this year, and not just in Andhra alone, but across the entire nation. The affluence of Andhra allowed him to be a visionary; the only states to come close to AP in wealth are Tamil Nadu and Maharashtra (another reason why the Congress wants to revive itself in these states). Sonia knows that trying to get campaign funds from the gentlemen who dominate each of these other two states would be like drawing water from stone. 

3 comments:

Uddharet said...

One comment posted in the expressbuzz recommends "Please read this as well http://www.sandeepweb.com/2009/09/04/how-slayers-are-sainted/"
I endorse the recommendation.
Also, I feel:
One should be even more seriously concerned with two related matters: 1. How much money has been / is being looted from the Tirupati temple? 2. Is the money looted from various sources being used for promoting conversions to Christianity?

M. Patil said...

Rajeev,

AP is not affluent like Maharashtra. However, YSR was lucky in that during his tenure he had 5 yrs of good rain and the global real estate bubble reached hyd. So he along with Maytas pumped up real estate like crazy. For a lot in Banjara Hills Maytas along with ICICI paid Manhattan price. There was no way these people could have recouped the investment on this land.

But, it did not matter citing the price by Maytas all other lands near Banjara Hills shot up. This spread to near by outskirts of Hyd. It is also rumored that Maytas has huge land bank anf if they dispose of some land land values in Hyd will come crashing. During this period in 2006/7 YSR sold huge pieces of govt land to fund his populist programs and also elections.

Now the bubble burst, the last real estate auction in Feb 2009failed spectacularly.

witan said...

The following story in The Statesman today probably points to another instance of the unholy links between the cOnGRESS party and big business houses. I am reproducing the story in its entirety because The Statesman URLs are not permanent.
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"Rs 20,000-cr gift to Mukesh
statesman news service
Sunday, 20 September 2009
NEW DELHI, 19 SEPT: Did an unusual provision in the Budget this year help a single individual to the extent of nearly Rs 20,000 crore?
The Finance Minister, Mr. Pranab Mukherjee, inserted Section 35AD in the Finance Act, 2009 to allow 100 per cent tax exemption on the entire capital expenditure incurred on setting up and operating a natural gas or crude oil pipeline. In other words, he permitted capital expenditure to be allowed as revenue expenditure. The concession was allowed to three industries ~ cold chains, agricultural warehouses and operators of gas pipelines.
But the Minister’s benevolence has helped one company ~ Reliance Gas Transportation Infrastructure Limited (RGTIL) ~ more than anyone else. According to one estimate, the benefit is of Rs 20,000 crore. That makes RGTIL unique, for no one else ~ industry, corporate or individual ~ has received such a whopping single benefit from Mr. Mukherjee’s budget.
Was Mr. Mukherjee being kind to a company? Or was the largesse extended to an individual, Mr. Mukesh Ambani?
Curiously, Government records describe RGTIL as a 100 per cent subsidiary of Reliance Industries Limited. As late as 29 June 2009, a petroleum ministry note described RGTIL as being owned by RIL. And on 3 July 2009, a draft note prepared for the consideration of the Union Cabinet is learnt to have described RGTIL as “a subsidiary of Reliance Industries Ltd.”.
It may therefore be the Government’s case – although the logic would be specious - that such largesse was shown to RGTIL because it would benefit an estimated 2.13 million shareholders of RIL. After all, the Petroleum ministry headed by Mr. Murli Deora had informed the Cabinet that RGTIL was a subsidiary of RIL.
But is RGTIL a subsidiary of RIL? Information available with The Statesman suggests this is not the case.
RGTIL was earlier called Gas Transportation and Infrastructure Company Limited. In December 2005, its name was changed to Reliance Gas Pipelines Limited. On 10 April 2006, the name was changed again ~ to Reliance Gas Transportation Infrastructure Limited. Until April 2006, this company was a wholly owned subsidiary of RIL. On 21 April 2006, the entire shareholding of Reliance Gas Pipelines Limited was sold for Rs 5 lakhs to a clutch of private investment companies.
According to a disclosure document filed for issue of Secured Redeemable Non-Convertible Debentures, Reliance Utilities Private Limited holds the entire equity shareholding of RGTIL. And who owns Reliance Utilities?
Records filed by the company show that eight investment companies hold the entire equity shareholding of Reliance Utilities. These are Lordwest Invest and Trading Co Private Limited, Shangrila Investment & Trading Co. Pvt. Ltd., Proline Investment Private Limited, Jigna Fiscal Services Private Limited, Vayudoot Finance and Leasing Private Limited, Vieraze Investment and Trading Co. Private Limited, Yashsvi Holding Private Limited and Anumati Mercantile Private Limited.
Most of these companies have their registered offices at 84A Mittal Court, Nariman Point, Mumbai. And most of them have executives of Reliance Industries as their directors. Various other companies owned by Mr. Ambani share this address.
In short, the owners of Reliance Utilities, and therefore of RGTIL, appear to be private investment companies of Mr. Ambani. If so, the Rs 20,000 crore tax exemption would benefit only him."