LIC Manager Fraud

Indian Express : 3/9/2009

LIC manager and one agent were convicted by the Guwahati court for committing fraud in settling death claims.

The court also imposed a fine of Rs.30,000 and Rs.50,000 on Baro and Takurita respectively.

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Multi-Level Marketing Fraud by Film Actor

Indian Express : 3/9/2009

The Money was collected in a Multi-Level Marketing scheme by a film actor and cheated the  public in Orissa.

A Case was booked under "The Prize Chits and Money Circulation Schemes (Banning) Act, 1978" in this regard.

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Cheating Sujana says it boosted turnover figures

Deccan Chronicle: 2/9/2009

The Sujana group companies -- Sujana Metal Products Limited and Sujana Universal Limited -- have admitted that they had presented boosted turnover figures to secure bank loans.
This confession was made by the two public listed companies to strengthen their plea for exemption from paying tax on their second sales, which they said were merely "notional transactions". The Sujana group is owned by Mr Y.S.Chowdary.
SMPL and SUL showed a turnover of about Rs 1,500 crore for the financial year 2004-2005. Now the group says these figures were boosted. In the three subsequent financial years the two companies showed a turnover of Rs 6,300 crore.When the tax authorities issued notices for payment of tax for these years, Sujana presented the same argument of notional transactions. Inquiries by this correspondent revealed that the companies, in separate replies to the show-cause notices issued by the CTD, said: "We are constrained to admit that the purchases as well as our sales are notional and transacted for the purpose of securing book turnover for maintaining working results and to boost up the turnover of the company."
They went on to add, "We are recording transactions of purchases and sales without actually receiving or dispatching goods."
When contacted, Sujana group said it had submitted replies to the show-cause notice. It, however, revealed only a portion of the content of the letter the full text of which is available with the newspaper.
Also, the SMPL director Mr S. Hanumantha Rao in an affidavit in the High Court (WP No 17663 of 2005) said "the transactions are nominal transactions without their (there) being a transfer of goods."
But the Sujana group said the observation was made in a different connotation to substantiate its stand with regard to levy of tax on second sales.
A confidential note circulated at the Regional Economic Intelligence Council in its meeting on August 17, 2009, mentioned the notional sales and boosting up of turnovers by the Sujana group companies.

Article

Beware of Fake Currency Notes

Andhra Jyothi News paper : 2/9/2009

"The following series of curency notes will be fake, be carefull"

Rs.500/- Note : - 2BW, 2AS, 4DG, 4OT, 4BD, 5BS, 6DK, 6AB, 6CW. CBL, 6AV, 6BR, 6BP, 6CH, 7DD, 7CA, 8CS, 8BP, BBS, 8PQ, 8DC, 8BD, 8DP, 8BF, 8AQ, 9BK, 9AS, 9AR, 9PS, 9CS, 9AS, 9AM, 9 AP, 9BR, 9 CM.

Rs.1000/- Note: - 2aQ, 8AC, 7DN, 7AC, 7CN, 9AT.

Cheating in the Name of high interest and providing jobs

Eenadu News Paper : 2/9/2009.

A lady collected huge deposits from the public with the promise of huge interest, providing jobs in Govt. etc and decamped with one crore cash in Kukatpalli.

Note :The Govt. of Andhra Pradesh has issued a G.O. in consonance with the R.B.I. Act, 1934 authorising all the Inspectors of police (CIs) in the Police Department of A.P. to take action against the collection of unauthorised collection of deposits vide G.O.Ms.No.39 (Finance and Planning (PLG.IF-I) Department, Dated 2/7/1986.

G.O.Ms.No.39 Dt.2.9.1986 authorising Inspectors of Police to initiate action under RBI Act

The Public are requested not to fall prey to these unscrupulous persons. Kindly immediately inform to RBI, Police, District Collectors and draft a letter to High Court to save the innocent gullible public from being cheated.

Eenadu News paper : 2/9/2009

The malpractices of the Anupama Finances, Vijaywada was informed well prior to 8 months to police. But police did not take action. As such today the said Anupama Finance has committed huge cheating".

Note :The Govt. of Andhra Pradesh has issued a G.O. in consonance with the R.B.I. Act, 1934 authorising all the Inspectors of police (CIs) in the A.P. to take action against the collection of unauthorised collection of deposits vide G.O.Ms.No.39 (Finance and Planning (PLG.IF-I) Department, Dated 2/7/1986.

G.O.Ms.No.39 Dt.2.9.1986 authorising Inspectors of Police to initiate action under RBI Act

Healthcare scam: CBI raids 14 premises in Jharkhand, Delhi

Indian Express News paper : 1/9/2009

According to the CBI, purchases of over Rs 130 crore were made from the funds allotted under the National Rural Health Mission without assessing requirement and violating rulesINVESTIGATING a major irregularity in a flagship programme of the UPA government for providing free healthcare services, the CBI on Monday searched 14 premises of a former health secretary and a senior health officer of Jharkhand and three others, who are being probed for allegedly siphoning off more than Rs 130croreunderthehealthschemes.

CBI officials alleged that former health secretary Dr Pradeep Kumar, a 1991-batch IAS officer, and Dr Vijay Shankar Narain Singh, the state Reproductive Child Health Officer, fraudulently purchased medicines, medical equipment/appliances and other items used in hospitals from 19 suppliers without assessing the actual requirement and without observing the rules laid down for it.

According to the CBI, the purchases were worth more than Rs 130 crore and the amount squandered was out of the fund allotted under the National Rural Health Mission. "The accused persons bought those medicines and equipments which were of no use," said CBI spokesperson Harsh Bhal.

The CBI officers raided 14 places in Ranchi, Hazaribagh, Daltonganj and New Delhi, from where files and documents related to deals were recovered.
"The Kanke Road (in Ranchi) official residence of Kumar was raided when he was not present there. The list of seizures has not been made as search operation was still on," CBI SP R C Choudhary told The Indian Express. The raids followed an inquiry ordered by Governor K Sankarnarayanan into alleged irregularities in the purchase of medicines and other healthcare commodities. The CBI probe was ordered on the basis of the findings of an inquiry by the state health department.

The inquiry by the Director (NRHM) Nitin Madan Kulkarni and Health Secretary Dr Shivendu found that the state Reproductive and Child Health (RCH) wing madethepurchaseswithoutfollowing the rules during 2008-09 when Kumar was the health secretary.

Explaining the irregularity, an official said, "For instance, the RCH purchased 102 types of medicines from local private companies during that period, despite the Union Heath Ministry's 2008 Purchase Preference Policy that called upon the state to buy medicines under the NRHM from PSUs."

In Monday's raids, the CBI recovered documents suggesting Kumar, his brother Rajendra, two suppliers Neeraj and Shayam Lal Chakravarty and RCH's Dr Vijay Shankar owned bunglows, market complexes and farm houses worth crores in Ranchi, Bangalore and New Delhi. Kumar is also alleged to have had a business deal with his chartered accountant Naresh Kejriwal and local builder Dharmendra Kumar Dheeraj, owner of a multiplex in Ranchi. In the raid at Kejriwal's premise, incriminating documents were seized, while at Dheeraj's office-cum-residence Rs 36 lakh cash was recovered. Kejriwal has been taken into custody.

In New Delhi, the sleuths sealed the bank account and locker owned by Rajendra. From Kumar's official residence, documents showing an FD of Rs 60 lakh were recovered.