Heres a new way for politicians to collect money openly
The father is the CM of a wealthy large state
The son is a business man with many pvt limited and 2 LISTED COMPANIES
The sons companies ALLOT shares at a HEFTY PREMIUM to established business houses
These business houses then get their projects cleared
After some time the son SELLS THE EQUITY in the pvt companies AGAIN AT A HEFTY PREMIUM to the fair value of the shares to business houses who surprise surprise get STATE GOVT CONTRACTS OR GET THEIR PROJECTS CLEARED AT ONCE
stocknet international
artillegence bio-innovations ltd
ARE the 2 listed companies in jaganmohans list of companies used to collect bribe money
Amazingly 2 companies with different directors and and shareholders share the same registered address
Amritdham Suite No. 5 & 6, Nityanand Nagar, Bakultala,Howrah 711109
http://indiatoday.intoday.in/site/Story/121270/cover-story/jagan-mohan-reddy-the-prince-of-cash.html?page=1
"Under the guise of buying shares, they have paid kickbacks to Jagan," alleges TDP President N. Chandrababu Naidu. "Otherwise, how else can Jagati Publications allot shares at such high premium within months of incorporation?" In 2008, auditing firm Deloitte estimated the worth of the publications, which owns the powerful 26-edition Telugu newspaper chain Sakshi with a total circulation of 12 lakh copies, at Rs 3,500 crore. It is odd that the balance sheets of 14 companies which invested Rs 42.56 crore in 2007 and 2008 in Jagati show an accumulated loss of Rs 68.95 lakh.
The main ones - Stocknet International and Artillegence Bio Innovation-are listed on the Bombay Stock Exchange and have as investors 12 other companies: Delton Exim Pvt. Ltd, Kirti Electro Systems, Bay Inland Finance, Bhaskar Fund Management Ltd, Cliftons Pearson Export and Agencies Ltd, Ganga Builders Ltd, Ispat Sheets Ltd, Gromore Fund Management Company Ltd, New Outlook Securities, Super Finance Ltd, Shakti Ispat Production Pvt. Ltd and Shivalaxmi Exports Ltd. The bank accounts of these companies are in the Gol Park branch of HDFC Bank and the Baliganj branch of the South Indian Bank Ltd in Kolkata. Several of these firms have been or are being investigated by the Securities and Exchange Board of India for unfair trade practices and fraud.
In April 2010, Jagan sold his controlling stake-51 per cent of the 69 per cent he held-in BCCL to French multinational Vicat, which was inducted as a strategic partner. Jagan's original investment in BCCL was Rs 45.18 crore and Income Tax sources say that the sale of shares brought him Rs 3,053 crore.
BCCL has an output capacity of 2.5 million tonnes; industry sources calculate that with cement priced internationally at around $200 a tonne, the deal translates into at least $500 million. Interestingly, the stake was sold in less than three years before the company attained its capacity production. Vicat has become the dominant player in cement production not just in Andhra Pradesh but in south India. Jagan's political opponents allege that the earnings from the BCCL-Vicat deal serve as his cash cow.
Last year, the state government headed by YSR gave Jagan-owned Saraswati Power and Industries Ltd 613.70 hectares of limestone quarries, valued at Rs 3,000 crore in Dachepalli and Machavaram mandals of Guntur district on a 30-year lease, to set up a seven-million tonne cement plant. According to terms, Jagan has to pay the state government a rent of Rs 100 a hectare for the first two years, raised to Rs 400 a hectare for following years; as well as Rs 58 for every tonne of limestone mined as royalty and cess.
The government issued the lease order on May 18, 2009, on the first working day after the 2009 Assembly election results were announced; this was even before the board of Saraswati Power had finalised plans to diversify into cement production. On July 8, 2009, the board allotted 37,50,000 shares of Saraswati Power (of a total 70,00,000) to Jagan at Rs 40 a share. On September 1, 2009, an additional 7,50,000 shares were allotted to him. Altogether, the shares were worth Rs 18 crore. Jagan's businesses are an intricate web of cross-holdings in his own companies. Saraswati Power, for instance, has investments in Sandur Power and Pulivendula Polymers, another firm owned by Jagan.
"What does one look for in an investor?" asks Jagan. "If it's an individual, one examines his Permanent Account Number (PAN) and checks whether the cheques he issues are honoured. In the case of a company, one studies the memorandum and articles of association and resolutions of the board as well as the PAN. We sell shares or go for a public issue based on these parameters." Ostensibly, Jagan conducts his business by conforming fully to the laws and rules of business, including the Companies Act, to evade scrutiny for having gained wealth through political favouritism. Meanwhile, Income Tax authorities are monitoring all financial transactions involving Jagan's pan ABEPY9757H as well as his companies.
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