Court acquits Chandraswami in FERA case

New Delhi, June 5 — A Delhi court, on Saturday, acquitted self-styled godman, Chandraswami, in a 14-year-old Foreign Exchange Regulation Act (FERA) case. The Enforcement Directorate (ED) had accused the godman of violating the FERA terms in a defamation suit filed by him 26 years ago.

Additional Metropolitan Magistrate A.K. Pandey said the ED failed to establish that the “accused Nemi Chand Jain alias Chandraswami had the knowledge about deposit of the money (6,000 Euros) in a defamation suit filed by him in 1986 in London against Lakhu Bhai Pathak.” Counsel for Chandraswami, Santosh Chauriah, said, “They did not know exactly who paid the money on his behalf.

Enforcement Directorate to quiz Ketan Desai

New Delhi, May 21 (ANI): The former President of the Medical Council of India (MCI), Ketan Desai, will be questioned by the Enforcement Directorate from Friday for his alleged role in a bribery case involving over Rs 20 million.

The Enforcement Directorate that has booked Desai under the Prevention of Money Laundering Act was earlier granted permission by the court to interrogate him.

The Central Bureau of Investigation (CBI) arrested Desai on April 22 for allegedly accepting a bribe of Rs two crore to give permission to a Punjab medical college to recruit a fresh batch of students without having requisite infrastructure.

Besides Desai, three other accomplices, middleman Jitendar Pal Singh, Kamaljeet Singh, a faculty member of Gyan Sagar Medical College, and the college”s Vice Chairman Sukhvinder Singh, were also arrested.

CBI also conducted raids in Punjab and Gujarat to trace Desai”s other associates and the assets he has acquired.

This is not the first time Desai has been accused of corruption.

In 2001, he had stepped down as MCI president after the Delhi High Court indicted him on corruption charges. (ANI)

Jharkhand court rejects Koda’s bail plea

Ranchi, May 14 (ANI): A special vigilance court rejected a bail petition of former Jharkhand Chief Minister Madhu Koda here on Friday.

Koda is currently in judicial custody.

He was arrested on November 30, 2009 in connection with a disproportionate assets case.

Judge Binoy Kant Khan has dismissed the petition filed by Koda.

Koda’s arrest came following a report filed by social worker Durga Oraon.

Oraon moved vigilance cell accusing Koda and some of his ex-cabinet members of acquiring wealth beyond their known sources of income.

He has also named former Jharkhand ministers–Enos Ekka, Harinarayan Rai and Kamlesh Singh.

All of these are under judicial custody along with Koda.

Koda is also facing illegal investment and money laundering charges running into several crores of rupees.

The Income Tax (IT) Department and the Enforcement Directorate (ED) are jointly investigating the case.

On Tuesday, the Supreme Court has stayed vigilance and enforcement inquiries against Binod Kumar, a businessman alleged to be involved along with Koda in the Rs 2,000-crore hawala and illegal investments scam.

A three judge Bench of the apex court also issued notice to the Jharkhand Government in this regard.

The order came on a petition filed by Kumar challenging the Jharkhand High Court’s refusal, through separate orders passed from May 2009 to April 2010, to delete his name from the list of accused persons under investigation for their suspected roles in the scam and their disproportionate assets. (ANI)

BCCI answerable to the nation on IPL: Gill

New Delhi, April 22 (IANS) Sports Minister M.S.Gill said the Indian Premier League (IPL) is the creation of Indian cricket board and it is answerable to the nation even as former India captain Mansur Ali Khan Pataudi brought some sanity to the no-holds-barred debate by advising Lalit Modi to attend the Governing Council meeting Monday for seeking time to prepare his case.

As the income-tax and Enforcement Directorate (ED) continued their searches and seizures of documents from IPL franchisee offices across the country, charges and counter-charges between the cricket board president Shashank Manohar and Modi vitiated the atmosphere. Manohar accused the IPL chief of selectively leaking private e-mails and breaching the confidentiality clause in the franchise contract through social networking site Twitter.

Searches were conducted in Kolkata, Delhi (in the offices of GMR group that owns Delhi Daredevils) and Pune – in the office of the Sahara group that won the Pune bid for the new IPL team that will play from next year, the other franchisee being Kochi over which Shashi Tharoor resigned as central minister last week.

Modi was grilled by the ED for the second successive day mainly on the process of awarding the television broadcasting rights and the media contracts to Multi Screen Media (MSM) and World Sports Group (WSG). The investigation zeroed in on the $80 million facilitation money paid by MSM to WSG.

The IPL imbroglio figured in the Rajya Sabha, too, and replying to the debate over his ministry’s working, Gill said the IPL is a creation of the cricket board and it should answer questions posed to it. At the same time, he said, ‘the ministry has to lose its passivity vis-a-vis cricket.’

Pataudi, a highly regarded sporting idol who was the country’s cricket captain in the ’60s and ’70s and is now a member of the IPL Governing Council, is clear that if Modi skips Monday’s meeting, he will surely be out.

‘If he doesn’t come to the meeting, I suspect the BCCI will take a very strict view. Lalit is playing very hard to get. I am not sure what he is up to,’ Pataudi told NDTV.

‘But if he appears before the Governing Council and asks for some more time to present his case, I think he should be given 3-4 days. We all know that he is busy with the IPL and he should be given some time.’

Asked if Modi will be voted out, Pataudi said the question of voting does not arise as he will simplay be removed.

The senior board members made it amply clear that Modi will be asked to quit at Monday’s meeting.

Modi, however, is equally vehement in saying that he would either resign or attend the meeting and challenged the validity of board secretary N. Srinivasan calling the meeting, saying he was an interested party as the owner of a franchise.

The usually reticent Pataudi tried to put things in perspective when he said the Governing Council was as much responsible for the crisis as Modi was because it did not take enough interest in the business affairs of the highly popular product.

‘It has been a failure of the Council. We should have been aware of what was happening. The fact that we didn’t question anything is because we were carried away with how well everything was going,’ he said. ‘I saw the crowds, the IPL was very popular. Only the dirt attached to it is sad.’

Blaming the entire Governing Council, Pataudi said the rumbling started over his style of functioning last year when a contract was changed and that was the time the council members started getting a little bit aware. Pataudi also said there is a clash of interest if board office-bearers own IPL teams, but was in favour of former cricketers having stakes in the franchisees.

‘I think there is a conflict of interest in board secretary N. Srinivasan (chairman of Indian Cements that owns Super Kings) having stakes in franchisees. But he (Srinivasan) took the approval of the board and it is above board,’ he said.

Pataudi feels that if Modi is ousted, a two to three member committee should be set up by the BCCI to run the Twenty20 league.

The income-tax officials in Kolkata are stated to have found incriminating evidence from the offices of Kolkata Knight Riders, whose primary owner is Bollywood star Shah Rukh Khan, and the Cricket Association of Bengal.

The probe by the Directorate of I-T Investigation was on the legality of money transfers from tax havens like Mauritius and Cayman Islands to buy the franchise and the players through auctions that went into making IPL one of the world’s richest sporting events and a magnet for international cricketers.

‘We’ve found incriminating evidence,’ Indian Revenue Service Deputy Director Akhilendu Jadhav said. ‘We needed to have a look at certain transactions and we have found whatever we were looking for.’

Board president Shashank Manohar said he had advised Modi not to go public on the holdings of all the franchisees as the IPL Kochi threatened legal action against the board after he had tweeted the ownership details.

‘After the names were leaked, I get a communication from (Vivek) Venugopal (partner in Rendezvous) around midnight saying that there is a Confidentiality Clause in the agreement, which had been signed between the board and them and there is a serious breach of obligation on part of the board,’ Manohar said.

‘I said the issue is complicated and needs detailed deliberations and has legal implications and hence it should be discussed and considered by the Governing Council meeting in Mumbai. The other members of the governing council also agreed with me and so did Modi.’

IT officials search Red Chillies Mumbai office

Mumbai, April 22 (IANS) The Income Tax department sleuths Thursday called on Bollywood superstar Shah Rukh Khan’s company Red Chillies Entertainment to inquire about its dealings and involvement in the Indian Premier League (IPL).

A team of around 10 IT officials Thursday afternoon visited the Khar (western suburb) offices of Red Chillies which has interests in the Kolkata Knight Riders (KKR), which Khan co-owns with Bollywood actress Juhi Chawla, an official said.

The search operations Thursday were part of the ongoing IT action against various groups, companies, franchisees and individuals connected with the IPL to trace out suspected financial irregularities in the cricketing event – the third and most controversial season, which draws to a close this week.

Earlier Thursday afternoon, the Enforcement Directorate (ED) and IT officials grilled IPL commissioner Lalit Modi on the alleged slush funds from abroad which are believed to have found their way into the IPL.

The IT officials Wednesday evening also questioned Modi briefly after a major action on the IPL’s media partners in north-west Mumbai suburbs.

On Wednesday, the IT raided the premises of Multi Screen Media, Malad, the World Sports Group at Khar and Pat Magnarella Management in Bandra.

This was followed by a top-ranking IT official leaving for New Delhi Thursday to submit a report on the outcome of the investigations into the IPL here over the past one week.

Simultaneously, the ED Mumbai also registered a case against ‘unknown persons’ under the Foreign Exchange Management Act (FEMA) to probe unauthorised transfer of huge foreign funds without permission of the Reserve Bank of India (RBI).

The ED move was prompted by information that huge funds have found their way into the IPL from international tax havens and it would inquire into the root of the IPL finances from dubious sources, officials said.

IT conducts search at IPL telecaster’s office

Mumbai, Apr 21 (ANI): The Income Tax (I-T) Department is conducting searches at the office of Sony”s Multi Screen Media (MSM) and the World Sports Group (WSG) since the morning.

Searches are on at four offices of MSM and WSG.

Both MSM and WSG handle telecast rights for the Indian Premier League (IPL) and the search is conducted in connection with the facilitation fee allegation.

The WSG had initially bagged IPL telecast rights, which were later given to MSM.

It has been alleged that MSM paid WSG a facilitation fee of 80 million dollars for this, a deal in which the IPL was allegedly involved.

On April 15, income tax officers searched IPL commissioner Lalit Modi”s offices in Mumbai.

The government now seems to have put the investigation on the fast track.

The Enforcement Directorate (ED) has registered a case against the IPL under the Foreign Exchange Management Act (FEMA) to conduct an open inquiry into transfer of foreign funds.

The case was registered after there were strong indications of funds coming in from Mauritius and the Cayman Islands.

The ED has already sought the assistance of Mauritius to trace funds transferred by IPL franchises.

Reports also suggest the ED officials are heading to Mauritius to trace the source of funds. (ANI)

Mukherjee assures probe on all aspects of IPL

New Delhi, Apr 19 (ANI): Union Finance Minister Pranab Mukherjee on Monday assured Parliament that all financial aspects of the Indian Premier League (IPL) will be probed, and none who are found guilty, will be spared by the law.

“Some honourable members in the morning raised issues of the IPL and wanted to have a thorough probe in all its aspects. In fact, the concerned the department has already started the investigation process,” Mukherjee informed.

“I can assure the honourable members that all aspects of IPL – including its source of funding, from where the funds were routed how it has been invested-all these aspects are being looked into and the appropriate action as per law will be taken,” he added.

Mukherjee assured the House that no guilty will be spared.

“No guilty or wrong doers will be spared,” Mukherjee said.

Mukherjee’s assurance came as the Opposition members, demanding a probe into the alleged black money trail in the IPL, rocked proceedings of the Lok Sabha.

Rashtriya Janata Dal (RJD) chief Lalu Prasad and Janata Dal (United) (JD-U) chief Sharad Yadav and Communist Party of India (CPI) leader Gurudas Dasgupta demanded a probe into the IPL.

In the morning, interacting with media outside the Parliament, the Communist Party of India (Marxist) leader Brinda Karat demanded formation of a Joint Parliamentary Committee to probe the matter.

Former Minister of State for External Affairs Shashi Tharoor”s resignation has led to a new demand to clean up the IPL and bring its commissioner Lalit Modi to book.

The Income Tax Department has reportedly sent a notice to all IPL team owners to submit their team ownership and holding documents by this week.

A high-powered meeting called by the Finance Ministry is slated to discuss steps to be taken in the probe.

The Finance and Revenue Secretaries, top I-T and Enforcement Directorate officials are expected to attend the meeting. (ANI)

Mukherjee assures probe on all aspects of IPL

New Delhi, Apr 19 (ANI): Union Finance Minister Pranab Mukherjee on Monday assured Parliament that all financial aspects of the Indian Premier League (IPL) will be probed, and none who are found guilty, will be spared by the law.

“Some honourable members in the morning raised issues of the IPL and wanted to have a thorough probe in all its aspects. In fact, the concerned the department has already started the investigation process,” Mukherjee informed.

“I can assure the honourable members that all aspects of IPL – including its source of funding, from where the funds were routed how it has been invested-all these aspects are being looked into and the appropriate action as per law will be taken,” he added.

Mukherjee assured the House that no guilty will be spared.

“No guilty or wrong doers will be spared,” Mukherjee said.

Mukherjee’s assurance came as the Opposition members, demanding a probe into the alleged black money trail in the IPL, rocked proceedings of the Lok Sabha.

Rashtriya Janata Dal (RJD) chief Lalu Prasad and Janata Dal (United) (JD-U) chief Sharad Yadav and Communist Party of India (CPI) leader Gurudas Dasgupta demanded a probe into the IPL.

In the morning, interacting with media outside the Parliament, the Communist Party of India (Marxist) leader Brinda Karat demanded formation of a Joint Parliamentary Committee to probe the matter.

Former Minister of State for External Affairs Shashi Tharoor”s resignation has led to a new demand to clean up the IPL and bring its commissioner Lalit Modi to book.

The Income Tax Department has reportedly sent a notice to all IPL team owners to submit their team ownership and holding documents by this week.

A high-powered meeting called by the Finance Ministry is slated to discuss steps to be taken in the probe.

The Finance and Revenue Secretaries, top I-T and Enforcement Directorate officials are expected to attend the meeting. (ANI)

Madu Koda scam: Chaudhary to continue as probing officer

Ranchi (Jharkhand), Mar 30 (ANI): The Jharkhand High Court on Tuesday announced that Income Tax (IT) Director (Investigation) Ujjwal Chaudhary, who is investigating the Madhu Koda scam, would continue to be the probing officer.

The court had earlier on March 16 extended the stay on Chaudhary”s transfer till March 30.

The High Court, on February 23, had stayed Chaudhary”s transfer after Durga Oraon filed an interlocutory application in the disproportionate asset (DA) case and had asked the IT department to file an affidavit as why the transfer was made.

The Central Board of Direct Taxes (CBDT), on February 19, had transferred Chaudhary from the post of director Income Tax (investigation) wing to the post of commissioner Income Tax (Central) an assessment wing of the department.

In another DA case involving ex-ministers including Koda, the bench had earlier asked the state government as why the CBI enquiry should not be ordered for its investigation.

Appearing for petitioner counsel Reetu Kumar argued that since the investigation by I-T and Enforcement Directorate (ED) has found huge investments made by the respondents in foreign countries, the investigation should be handed over to the CBI.

State advocate general RS Majumdar contended the arguments that there is no need for CBI inquiry as investigation is being carried out by the vigilance and other agencies.

The court had also dismissed an interlocutory application filed by the prime accused Binod Sinha in which he has sought relief from any coercive action by the investigating agencies. The bench had then said that court could not interfere in the investigation of the case.

Madhu Koda is involved in the Rs 4000 crore money laundering scam. (ANI)

Apex court allows Chandraswami to travel abroad

New Delhi, May 28 (IANS) The Supreme Court Thursday allowed controversial guru Chandraswami – who is facing a number of criminal charges – to travel abroad after depositing a sum of Rs.1 million in cash with the government.

A bench of Justice V.S. Sirpurkar and Justice R.M. Loha, while granting Chandraswami permission to travel abroad, also asked the government to return his passport after renewing it.

Restrained from going abroad for his alleged role in a clutch of criminal cases, including Lakhu Bhai Pathak cheating case involving former prime minister P.V. Narasimha Rao, Chandraswami will be going abroad after a gap of 14 years.

The spiritual guru had been seeking permission to go abroad to Britain, United Arab Emirates and Mauritius to perform ‘yagnas’ (special prayers) at the residences of some of his disciples.

The apex court allowed Chandraswami to go abroad after dismissing the Enforcement Directorate’s objection to the rulings of a trial court and the Delhi High Court subsequently, which had allowed him to go abroad.

Chandraswami faces prosecution by the Enforcement Directorate in 11 cases of allegedly violating the Foreign Exchange Regulation Act (FERA).

The directorate challenged the trial court’s order granting him permission to travel abroad. The Delhi High Court too eventually allowed him to go abroad, dismissing the directorate’s fears that he might not come back to face trial.

Allowing Chandraswami’s plea to go abroad, the high court had asked him to pledge Rs.1 million per case as surety.

The Supreme Court subsequently on Feb 12 had suspended the high court order, which the apex court restored Thursday with a slight modification.

On Tuesday, the Enforcement Directorate counsel Wasim Ahmed Qadri, while opposing Chandraswami’s plea, had told the court that he is also suspected to have a role in funding the assassination of former prime minister Rajiv Gandhi in May 1991.

This prompted the court to ask him: “If he has funded the assassination, then why did you not proceed against him?”

Earlier on Feb 26, appearing for the Enforcement Directorate, Additional Solicitor General Gopal Subramanian had told an apex court judge B.N. Agrawal that Chandraswami owes penalty to the tune of Rs.80 million for violation of various foreign exchange control laws.

CBI, ED oppose move, say it’ll hit efficiency

The government’s move to hive off prosecution work from the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) and entrust it to an independent Directorate of Prosecution has been opposed by the two premier agencies. Both agencies have formally objected to the government’s move to bring the prosecution machinery under its direct control, saying this would adversely affect their performance.

The CBI recently requested the government to shelve the plan, sources in the Department of Personnel and Training (DoPT) told HT. Though the proposal has been under discussion for the past few years, the Union Cabinet approved a draft note in this regard a few days ago. The proposal has got the green signal from the law ministry and the Prime Minister.

The government’s keenness to push the proposal through when it has barely a month of its tenure left has raised eyebrows in administrative circles. The CBI, the sources said, told the government that such a move would seriously jeopardise the agency’s efforts to get delivery of justice and lead to a decline in its efficiency.

The ED has also expressed serious concerns. It told the government that the setting up of a separate prosecution agency was likely to erode the administrative authority and control of the Department of Revenue and Ministry of Finance.

The CBI told the DoPT that in the states, which have separate directorates of prosecution, the conviction percentage is less than 43 per cent. In some states the conviction percentage is in single digits, mainly because of the lack of synergy between the investigation and the prosecution divisions.

The CBI fears that its conviction rate of 70 per cent would go down if the new agency is created.

Money trail in India’s kidney ring leads to Hong Kong, Australia

Money trail in India's kidney ring leads to Hong Kong, Australia New Delhi – Indian investigative agencies have found the money trail in a multimillion-dollar kidney transplant racket leading to Hong Kong and Australia, and will ask authorities in those to help in the probe, news reports said Sunday.

The alleged kingpin of the racket, Amit Kumar, and his associates are accused of performing more than 500 kidney transplant surgeries over a decade by procuring organs for paltry sums of money from poor people and transplanting them on wealthy recipients.

The Enforcement Directorate, the agency probing the ring, has received the permission of a Delhi court to follow the trail of part of the 100 million dollars Kumar is suspected of amassing, to offshore properties and banks in Hong Kong and Australia, PTI news agency reported.

“This is a fit case where letter of rogatory is required to be issued … to the competent authorities in Hong Kong and Australia to identify the ill-gotten money earned through unlawful means and for collection of evidence,” judge AK Pathak said in a ruling Saturday.

A letter of rogatory is a formal request from a court of a country seeking assistance from authorities in other countries for collection of evidence in a criminal case.

Enforcement Directorate officials said they needed to question people in Hong Kong and Australia and collect documents as the money trail indicated Kumar had acquired assets in these two countries and had opened banks accounts in his name.

Kumar is currently in jail along with at least eight others connected with the case. He was arrested on February 7 at a forest resort in Nepal, where he had escaped to after the racket was exposed in January following complaints by impoverished labourers who said doctors in Gurgaon, a New Delhi suburb, had removed their kidneys.

Kumar has been charged under various provisions of the Indian Penal Code relating to wrongful confinement, causing hurt by dangerous weapons, cheating and criminal conspiracy.

Police suspect the transplant racket served international clients from Britain, the United States, Greece, Turkey, Lebanon, Canada, Saudi Arabia and Dubai. The clients flew into India as tourists and underwent the transplants at clinics in New Delhi and its suburbs. (dpa)