Madras varsity funds used as lien to help pvt trust get loan

D Suresh Kumar, TNN 1 November 2009,

CHENNAI: A controversy is raging in the corridors of the
University of Madras over an alleged financial irregularity
in managing funds to the
tune of Rs 5 crore during the previous vice-chancellor
S Ramachandran’s tenure. The matter has now come
under the CBI scanner.

The money, part of a Rs 12-crore deposit
made by the university
in the State Bank of India’s Valasaravakkam branch,
was allegedly put up as lien —
without the knowledge of
university officials —
to help a Bangalore-based private
trust obtain a loan.

When the trust, reportedly managed
by acquaintances of a former DMK Union minister,
defaulted on loan repayment, the bank allegedly
refused to release the deposit (held as lien) on maturity.

While the Madras University Teachers Association has
demanded a probe to ascertain why such a large sum
was transferred from the SBI’s service branch on the
Chepauk campus to the far-off Valasaravakkam branch,
not many past and present senior university officials are
willing to discuss the subject.

However, Ramachandran insisted that the CBI had
given the university a clean chit, and the varsity
had not suffered any loss.

Nonetheless, it is reliably learnt that internal
investigations within the university were stonewalled.

India more prosperous than China !

Posted: 31 Oct 2009 12:42 Most of you must be aware that China’s per capita income (average income of an individual per year) is more than double of India – India’s is close to $3000 whereas, China’s is close to $6000 (after accounting for purchasing power parity). In short, average Chinese citizen makes double the money than average Indian citizen. However, India is more prosperous that China – and that is a fact. In reality, prosperity does not mean only having more money, but there is much more to it including the well-being and freedom of an Individual. Hence, rightly so, India ranks well ahead of China according to the latest Legatum Prosperity Index – Unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term. The prosperity Index is derived based on following 9 Factors: Economic Fundamentals – a growing, sound economy that provides opportunities for wealth creation Entrepreneurship and Innovation – an environment friendly to new enterprises and the commercialization of new ideas Democratic Institutions – transparent and accountable governing institutions that promote economic growth Education – an accessible, high-quality educational system that fosters human development Health – the physical well being of the populace Safety and Security – a safe environment in which people can pursue opportunity Governance – an honest and effective government that preserves order and encourages productive citizenship Personal Freedom – the degree to which individuals can choose the course of their lives Social Capital – trustworthiness in relationships and strong communities

RBI CIRCULAR ON INOPERATIVE SAVINGS AND CURRENT A/Cs

OCT 31, 2009 RBI

Inoperative Accounts

Please refer to Paragraph 24.2 (iv) of our Master circular

DBOD. No.Leg. BC. 9 / 09.07.006 / 2009-10 dated July 1, 2009

on
‘Customer Service’ in terms of which a
savings as well

as current account should be treated
as inoperative / dormant

if there are no transactions in the
account for a period over two years.

Further, in terms of Paragraph 24.2 (vi),
for the purpose of classifying

an account as inoperative, both the types of transactions

i.e., debit as well as credit transactions
induced at the instance

of customers as well as third party
should be considered.

2. There may be instances where the
customer has given a

mandate for crediting the interest
on Fixed Deposit account

to the Savings Bank account
and there are no other operations

in the Savings Bank account.
Some doubts have arisen whether

such an account is to be treated as
inoperative account after two years.

3. In this connection, we clarify that
since the interest on

Fixed Deposit account is credited
to the Savings Bank

accounts as per the mandate
of the customer, the same

should be treated as a customer
induced transaction.

As such, the account should be
treated as operative

account as long as the interest on
Fixed Deposit account is credited to the
Savings Bank account.

The Savings Bank account
can be treated as inoperative

account only after two years
from the date of the last credit

entry of the interest on Fixed Deposit account.

Yours faithfully,

(B. Mahapatra)

Chief General Manager

Circular Details:-

RBI/2009-10/ 202 DBOD.Leg. No.BC. 55 /09.07.005 /2009-10 Dated: October 30, 2009

Prospecting licence for diamond mining to RIL subsidiary

BHOPAL: The Madhya Pradesh government has accorded a
prospecting licence for diamond mining to an exploration
and production subsidiary of
Reliance Industries Limited.

Following the licence the subsidiary will be able to prospect
over an area of 1800 square kms spread over the Rewa, Sidhi
and Satna districts in Madhya Pradesh, an official release
said here today.

Reliance plans to pump in about Rs 1000 crore in the
prospecting work and it is the second private sector
company to venture into diamond prospecting in Madhya
Pradesh after Australian mining major, Rio Tinto.

Yesterday, the Madhya Pradesh Mining Director,
R K Sharma handed over the prospecting licence
for diamond to RIL CGM, G K Mohapatra in Bhopal.

Besides diamond, the prospecting licence includes
permission for other minerals like
gold, copper, lead, zinc and silver.

The licences have been issued in two parts, one for
an area of 1084 square km and another for
an area of 735 square km in the three districts.

Govt on black money trail, says Pranab Mukherjee

India has begun tracking down money stashed away in secret
bank accounts in Switzerland and Belgium.

The government has finalised dates to renegotiate with
Switzerland and Belgium to broaden the scope of the
existing treaties. The authorities have also stepped up
efforts to bring back money parked illegally in foreign banks.

According to original plans, Finance Minister Pranab
Mukherjee was to meet the Swiss authorities from
December 10-11 to discuss the issue.

“But I think the date for the meeting has been advanced
by a month,” Mukherjee said at the annual Hindustan Times
Leadership Summit on Friday.

The government has also prepared a list of countries with whom
it will sign tax information exchange agreements.

A model of the agreement is in the last stage of finalisation.
The Income Tax Act, 1961, has been amended through the
Finance Act, 2009, with a new formulation to enable the
government to enter into fresh agreements with other countries.

Options for domestic measures to obtain information on bank
accounts maintained abroad by Indian citizens is also under way.

Mukherjee said no estimate had been made of the amount of
funds stashed away in Swiss banks. “It was estimated way back
in 1985, but since then, no fresh details have been worked out,” he said.

Bharatiya Janata Party leader and former deputy prime minister
L.K. Advani earlier said the slush money parked in foreign banks
could be in the range of Rs 25,000 crore (Rs 250 billion) to Rs 75,000 crore
(Rs 750 billion).

Swiss Ambassador to India Phillippe Welti hinted that his country
would be willing to share information with India about bank
accounts of tax defaulters after the two sides revised the existing
treaty on double taxation in December.

“Once the Indian and Swiss governments have agreed on a possible
change in the existing treaty, Switzerland will implement the treaty,”
Welti told a television news channel recently.

Delhi-based think tank National Institute of Public Finance and Policy
had made an estimate of the black money in circulation in the country.
In 1983-84, the amount was between Rs 31,584 crore (Rs 315.84 billion)
and Rs 36,786 crore (Rs 367.86 billion).

According to research carried out by economist Arun Kumar, the size
of the parallel economy in the country could be around Rs 16 lakh
crore (Rs 16.90 trillion), or 40 per cent of India’s gross domestic product —
the market value of all goods manufactured and services generated in a year.

Effectively, the government is missing out on about Rs 5 lakh crore
(Rs 5 trillion) of tax revenue. This is more than the current fiscal
deficit of Rs 4 lakh crore (Rs 4 trillion).