Gold Sukh scam: Ponzi schemes under the scanner

Jaipur: The city police have requested the registrar of companies and income tax department for information over multi-level marketing companies operational in the city. The development had followed unveiling of the multi-crore Gold Sukh scam in the city.

"The frauds being held in pretext of multi-level marketing are financial in nature, thus we have sought information from the related departments. Action will be taken if any irregularities are discovered in functioning of these firms," said Anil Paliwal, additional commissioner of police.

Fraud firms assuring unrealistic returns through investments in tree plantations, real estate, share market have previously vanished after collecting deposits of lakhs of investors. The integration of multi-level marketing concept helped such firms to reach large population in short duration of time.

Investors and police only come to realise of the fraud once the company gets exposed and by the time the promoters have escaped with the swindled money. In the recent "Gold Sukh" case the firm had adopted similar process and had assured return from investment in Gold.

In attempt to take a lead over such instances the police have now approached the tax department, "We have been asking for any irregularities noticed in the companies records during routine inspections by income tax and other departments, the information will come useful in identification of fraud firms" said ACP (crime) Raghuveer Saini.

Inquiries against few such companies have reportedly been initiated at the Shyam Nagar and Mahesh Nagar police stations, however police officials have been maintain silence as investigations are under process.

FDI in retail: All-party meeting fails, Oppn firm on rollback

The all-party meet chaired by Finance Minister Pranab Mukherjee to discuss the deadlock in Parliament has been unable to find a solution with the Opposition relentless in its demand that the government roll back its decision to introduce 51 per cent foreign direct investment in multi-brand retail.

The government bought some time with Leader of the House in Lok Sabha and Finance Minister Pranab Mukherjee telling the meeting that he would take the views of the Opposition to the Prime Minister and the Cabinet since the FDI decision was taken by the Cabinet.

“The Opposition parties agreed with this suggestion,” CPI(M) leader Sitaram Yechury said after the meeting. It now remains to be seen what internal permutations the Cabinet arrives at to find a mutually acceptable formula on the FDI issue.

After the meeting, Mukherjee said he would also talk to UPA Chairperson Sonia Gandhi to decide how best to resolve the impasse in Parliament.

Mukherjee said Opposition leaders have suggested a rollback of the decision and a discussion in Parliament on the issue under an adjournment motion.

“I informed them (Opposition leaders) that I will talk to the leadership -- Prime Minister and Sonia Gandhi. You will come to know the government's decision,” he told reporters here.

Referring to his meeting with them earlier in the day, Mukherjee said, “They have given various suggestions. One of their suggestion is you roll back... another suggestion has come that this should be discussed under an adjournment motion.”

Meanwhile, Parliament was on the boil for the sixth consecutive working day on Tuesday with the Opposition determined to scuttle all business till a decision was reached on FDI. After an initial adjournment till noon, both Houses were later called off for the day.

FDI to increase competition in organised retail: Citi

NEW DELHI: Notwithstanding strong opposition to foreign direct investment in multi-brand retail, a Citi report today said the entry of global retailers like Walmart will increase competition in India's organised retail sector. 

In addition, USD 15-20 billion in FDI could flow into the country over the next 10 years as a result of the government's decision to allow foreign direct investment (FDI) in multi-brand retail, the report by the global financial services major said. 

"The move... will help improve competition in the organised sector through the entry of several players such as Carrefour and Tesco, which have been waiting on the sidelines, and enhance expertise in logistics, supply chain management from multinationals," Citi said in its 'India Microscope' report. 

The report also said the move would help enhance the share of organised players in the overall retail sector, who currently account for about 6 per cent of India's USD 470 billion retail market. 

Parliament has been paralysed for the last three days as the entire Opposition, joined by UPA allies TrinamoolCongress and DMK, is protesting against the Cabinet decision of November 24 to allow 51 per cent foreign direct investment in multi-brand retail. 

Multi-brand retail in India is largely in the unorganised sector dominated by neighbourhood kirana stores and there is a concern among political parties and traders that these stores would be impacted by the entry of global retailers. 

Citi's report also asserted that increasing the FDI cap in insurance has the potential to attract about USD 9-10 billion in FDI in the country over the next decade.

Pawar incident not civil, justified: Omar

Bishnah (Jammu), Nov 24 (PTI) Asking media to desist from glorifying such action, Jammu and Kashmir Chief Minister Omar Abdullah today condemned attack on Union minister Sharad Pawar and said such acts are not in any way civil or justified. "The movement you (media) justify it as a movement of civil society - you are doing a great disregard to the civil society as this is in no respect civil behaviour," he told reporters after addressing a public gathering at Deoli village in Check Hasla, about 45 km from here. "I know some of you love to do it. Corruption has no justification for any sought of civil behaviour. Sharad Pawar is a very senior leader of the country. He is a Cabinet minister and former chief minister. "This sought of conduct is not any way civil or justified whatever be the perceived feelings. This is unjustified behaviour and I hope media should not glorify this sought of action," he said. Reply to another question about the deliberation on AFSPA at a cabinet meeting today, he said, "I am not going into specifics. I am not going to divulge what the options we have except it is ongoing discussion that we are having. We will see what appropriate steps can be taken." On another question as to who has final veto on AFSPA revocation - the governor or he - Omar said, "If I answer your question, no likely you will be making breaking news that Omar Abdullah is in fight with Raj Bhavan. I have the best of the relationship with Governor N N Vohra and with Raj Bhavan. "I do not want to say or suggest anything that will result in any sought of any confusion in this relationship. Whatever is the position, I understand perhaps the Advocate General has given an opinion. I have not had the opportunity to examine that and it has not been examined by the legal experts - when I do, I will come up with an answer." In reply to a question about the statement of Arundhati Roy on Kashmir, he said that he was not in a business of reacting to the people like Roy. "As for as I know, India is a big democracy - within restrictions, I want right to free speech is exercise principally. Beyond that, I do not want to argue," he said.