Income tax raids on Anurag Kashyap, Tapsee Pannu and others.

The Secret of making profit from flop movies:

Anurag Kashyap is a mediocre movie director whose last and only successful movie is remembered for the choicest expletives he inserted in it. The actress Tapsee Pannu is no different. She is relatively new comer and not a blockbuster by any standards. Yet both have their networth multiplied exponentially. For past three days incometax department is questioning them for sources of their income.

The Midas Touch of Wealth without SUCCESS.

The Income Tax Department had been monitoring these two for a long time. Their ever rising wealth has become a reason for raids especially the fact that it happened while their movies were constantly flopping. Two producers Vikas Bahl and Madhu Mantena have also similar track record. The IT department is searching the magical wand by which these people generate wealth.

Anurag Kashyap

Anurag Kashyap has been working in the film industry for almost 23 years. In the year 1998, he started his career as a story writer with the film ‘Satya’. After this, he became a director from the 1999 film ‘Last Train to Mahakali’ and a producer from the 2010 film Udaan.

In just 23 years, Kashyap has acquired assets worth about 806 crores. His films continued to flop, but the property has been growing faster rate at which his movies flopped.

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How to survive the collapse of a Bank in India

Lakshmi Vilas Bank is the fifth financial firm to collapse in India within the last 30 months. In these five banks, most were sending out message far in advance that they are about to fall. Is there any method for common people to survive in such failures?

Methods or tricks to survive:

Banking is a difficult business. In India it is a more difficult due to corruption and many legal problems. While there is repeated reforms in the recovery part of bad loans, the disbursement of loan is anything but transparent. The Banks have SOP on disbursement of loans but it collapses after every two decades. Last time there was a similar problem in 1996-99.

The high interest rates on credit is only a reflection of this problem of bad loans. The difference of 3-7% between the prime deposit rate and lending rate is unusually high to cover the cost of money wasted on bad loans. But that is another problem. So how does a common person survive such falling banks?

Few Survival tricks:

There are many simple rules which have to be followed. But this guide is for those who have funds below ten million (one Crore) in cash to handle. For sum more than that, these rules may help but may not be sufficient. First is Post Office Bank.

Post Office Bank

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The Prime Minister level summit between India and Luxembourg.

If Luxembourg is compared to with Indian Railways, it would be just one railway station out of the more than seven thousand five hundred of Railway Stations it has. Luxembourg has population of less than 7 lakh, which is the daily traffic on some of the stations of the Indian Railway. But Luxembourg is the second richest country in the word with per capita income of about 80 thousand USD on PPP basis. In terms of territory it is twice the size of tiny state of Goa in India. But despite it’s size, Luxembourg is one of the four Capitals of European Union and is seat of Justice in EU.

So what is so important that in this pandemic, both countries could not postpone the summit and decided to be across the table through the virtual video conference.

Luxembourg on FATF Grey List:

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Tightening noose around political funding by NGOs.

Non Government Organization or NGOs in India are governed by obsolete and opaque Societies Registration Act and therefore abused by all. This includes polititians, on top of all other. Foreign remittance to NGOs is governed by Foreign Contribution Regulation Act. Every NGO has to apply for a licence to get foreign currency for a charitable purpose. NGOs have to file an annual return of expences with the licensing authority. 20000 NGOs failed to comply with this small requirement and therefore their licence was cancelled in last 4 years. In enquiry of several NGOs these were found to be hiring journalists in the name of study and funding protests. Now the Government has decided to tighten noose around these NGOs.

FCRA amendment

The amendment makes Aadhaar (biometric) mandatory for all the office bearers of an NGO seeking foreign donations, prevents transfer of foreign contributions to any other person unless they also possess FCRA certificate, enables the Centre to allow an NGO to surrender its FCRA certificate. It also bars public servants from receiving funds from abroad through the conduit of NGO.

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Arun Shourie: The Inefficient with Integrity.

Arun Shourie in my book is a sincere person. Atleast until he sided with likes of Yashwant Sinha and Prashant Bhushan a known carpet bagger. Shouri is author of many well researched masterpieces. My favourite being Eminent Historians. It is an excellent book about the official historians of Nehru’s India and their methods to spin lies.

Integrity vs. Competence.

Between 1999 to 2004 Arun Shouri was Minister for disinvestment. While his honesty is beyond question, his Ministership raises questions about necessity of competence in governance. Integrity can not be a substitute for wisdom. Shourie all his life had no commercial experience yet he was made to sell government properties at best price!! The result was disaster. While it is a good example to quote that a teetotaller is best bar tender, it is not of universal application. A tippler if he keeps restraint, may prove to be more efficient.

Sale at price below market value.

Recently orders have been passed by a court to register an FIR against Arun Shourie, for his action as a minister in the Vajpayee government.

A special CBI court in Jodhpur has ordered a criminal case against Arun Shourie, former disinvestment secretary Pradeep Baijal and three others for alleged corruption and fraud in a government-run hotel in 2002.

Special CBI Judge Puran Kumar Sharma also ordered that the Laxmi Vilas Palace Hotel in Udaipur be handed over to the state government. The court has given this order in the case of disinvestment of Laxmi Vilas Hotel at a much lower price than the market price. The hotel was earlier run by the Tourism Development Corporation of India, but in 2002 it was sold to Bharat Hotels Limited, which now runs the Lalit Group of Hotels.

The judge passed this order while hearing a CBI closure report in the case of alleged loss of Rs 244 crore to the government from the sale of the hotel. The CBI report stated that there was no evidence to initiate prosecution against the accused in the disinvestment process.

However, the court disagreed with the central agency CBI’s argument in the case and criticized it for presenting a closure report. The court said prima facie it appears that the then minister Arun Shourie and the then secretary Pradeep Baijal misused their positions and caused a loss of Rs 244 crore to the central government in the deal.

The other three accused in the case are Ashish Guha, the managing director of the then investment firm Lazard India Ltd, Kantilal Karamsi Vikamsey, the head of the then valuation firm Kanti Karamsi & Co and the chairman of Bharat Hotels Ltd and Jyotsna Suri. The special court ordered that they be booked under sections 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code and section 13 (1) D of the Prevention of Corruption Act.

In other words the caucus of these people manipulated to sell a property worth 250 crores at meagre 7.52 crores.

The court said that accused persons should be summoned through arrest warrant. Also, the court ordered the Udaipur district collector to take possession of the hotel immediately.

As stated earlier Arun Shourie was the Union Minister of Communications, Information Technology and Disinvestment in the then government led by former Prime Minister Atal Bihari Vajpayee during 1999-2004.

CBI had registered an FIR on August 13, 2014, alleging that Baijal misused his official position on the basis of preliminary investigation and criminal conspiracy in the disinvestment of the Lakshmi Vilas Palace Hotel. According to the FIR, the hotel was initially valued at Rs 252 crore. But in the end it was disinvested for Rs 7.52 crore.

Arun Shourie was one of the Ministers in Vajpayee Government who even though was not dishonest brought bad name by all his disinvestment deals. All deals were undervalued. It is a lesson for the present Modi Government which is not going out for out right sale and insted of resorting to disinvestment though offloading of its shareholding in Government Companies. Bharat Dynamics was on such company in which Goverment reduced it’s holding by selling 15% shares therein.