Connect with us

Business

Two BJP MPs, whistleblower move IBBI over ‘dubious’ role of Resolution Professional

Published

on

Chhattisgarh-based Topworth Steels and Power Pvt Ltd, which is undergoing a Corporate Insolvency Resolution Process
Chhattisgarh-based Topworth Steels and Power Pvt Ltd, which is undergoing a Corporate Insolvency Resolution Process

Two BJP MPs have approached the Punjab National Bank (PNB) and the IBBI, questioning the role of a resolution professional in Topworth Steels and Power Pvt Ltd process, alleging that he has been committing fraud on the corporate debtor who he represents and creditors whose interest he is supposed to protect while running the process as per the Insolvency and Bankruptcy Code.

On September 23, BJP MP from Jharkhand’s Koderma, Annapurna Devi and Uttar Pradesh’s Banda R.K. Singh Patel wrote to authorities concerned, alleging that Sanjay Gupta, who has been appointed as Resolution Professional for Chhattisgarh-based Topworth Steels and Power, has been involved in malpractice and siphoning money from the company.

The two MPs also accused Gupta of introduced his own suppliers and vendors, who are helping him siphon the money and that he is purchasing raw materials at a higher price (up to Rs 500-1,00 per MT) and selling finished goods at a cheaper price to the local market price, thereby causing loss to the firm and in turn, to its creditors.

According to a whistleblower in Topworth Steels and Power, Gupta adopts the measure of an extremely low assignment fee to get selected as Resolution Professional, and after his selection, introduces new suppliers and vendors to work along with existing business partners.

“He (Gupta) only conducts business with the suppliers and vendors who are ready to help him siphon off money and bleed the corporate debtor as he purchases raw materials at a higher price and sells the finished goods at lower price,” the whistleblower said.

He said that in his assignment as Resolution Professional at the company, the fee quoted by Gupta was Rs 5.5 lakh which includes remuneration for legal and technical experts, noting that for a company like Topworth Steels and Power, the fee for such a job would vary between Rs 12 to 15 lakh.

He said that Gupta, after being appointed, started replacing auditors and appointing his loyalists as consultants at the company, and even his employee as a legal advisor at Rs 3 lakh per month, in addition to fees for appearance and drafting equivalent to a good counsel.

He further said that the Resolution Professional also changed the cost auditors without any explanation at a very high fee.

Citing the alleged irregularities by Gupta, the whistleblower said that he has instructed for issuing a purchase order of raw material at a higher price.

“The cost of raw material purchased were higher by Rs 300 to Rs 800 per Metric Tonne to the local price. He also sold finished goods at discounts of up to Rs 1,000 to Rs 1,100 per metric tonne on the market price on the basis of immediate cash being paid by the purchaser,” he said.

Sharing some of such purchase and sale orders, the whistleblower said that Gupta issued a purchase order on August 6 for 3,000 metric tonne of iron ore pellets, at Rs 7,465 per metric tonne, to Laxmi Steel Industries from Bhilai, whereas the same quality iron ore pellet was available at Rs 7,000 per MT.

Similarly, a purchase order to procure 4,000 MT of South African coal at Rs 6,090 per MT from Raipur-based Animesh Ispat Pvt Ltd was issued on August 11, whereas the same non-coking coal was available in the market at Rs 5,200 per MT on the said date.

The whistleblower also shared 6 more purchase orders between August 12 to August 25, saying that a full transaction audit will unearth more wrongdoings.

He alleged that Gupta’s actions have resulted in leading to the ultimate demise of the corporate debtor, thereby defeating the purpose of the IBC code.

The revelations come almost 45 days after the Enforcement Directorate (ED) raided Resolution Professional in the Bhushan Power and Steel Ltd (BPSL) matter, Mahender Kumar Khandelwal, for allegedly helping the former promoters of the company in “clandestinely” clearing finished goods for which he was paid in cash.

The ED, in a statement on August 20, had said that the BPSL had engaged in clandestine clearances of finished goods from its Odisha plant to its plants at Kolkata and Chandigarh, with goods valued at Rs 700 crore being cleared without payment of applicable taxes and duties and without issuance of any statutory invoice.

“.. this practice which was resorted to by the erstwhile management of the company had continued even after initiation of CIRP (corporate insolvency resolution process) and some irregularities on part of Resolution Professional M.K. Khandelwal were also revealed”, it said.

Similarly, the ED on Tuesday said that it arrested Cox and Kings Group’s internal auditor Naresh Jain for siphoning and diverting money in the Yes Bank case.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Eicher Motors now offers customised Royal Enfield motorcycles

Published

on

By

Eicher logo
Eicher logo

Chennai, Oct 15 (IANS) Two-wheeler maker Eicher Motors Ltd on Thursday said customers can now choose to personalise and accessorise their Royal Enfield motorcycles at the time of purchase.

In a statement issued here, the company said it has rolled out the first of its kind motorcycle personalisation service – The Royal Enfield Make-It-Yours – MiY.

The Royal Enfield is the two-wheeler division of Eicher Motors rolling out bikes like Bullet, Interceptor 650, Continental GT 650 and others.

According to the company, the MiY is enabled via an app based 3-D configurator will allow buyers to access to various possible combinations in personalistion options at the time of booking the motorcycle.

Once the order is placed through the app, the buyers will also know the probable delivery time.

According to Vinod K. Dasari, CEO, Royal Enfield, with MiY, customers will have a “little bit of them” built into the motorcycle, and depending on the level of personalisation, motorcycles will be custom-made as per consumer specifications, within 24 to 48 hours, at the Chennai plant.

“We will be rolling out MiY for all our motorcycles, across all our stores in the country in a phased manner. All new motorcycle models from Royal Enfield, from here on, will come with the MiY feature,” he said.

Initially the MiY will be available for models like Interceptor 650 and Continental GT 650.

Continue Reading

Business

Construction picks up in unlock, cement prices rise

Published

on

By

Cement city Nimbhahera emerges as new hotspot in Rajasthan
Cement city Nimbhahera emerges as new hotspot in Rajasthan

New Delhi, Oct 15 (IANS) Fading monsoons, easing of lockdown restrictions and recovery in non-trade demand have revived the construction activities in the country resulting in pan-India 2 per cent month-on-month increase in cement prices in October after four consecutive months correction.

The rising demand and prices for construction materials is a good barometer to gauge revival of economic activities in the country.

The cement price rise in October is also an aberration to historic trends when price normally corrects 2-3 per cent due to seasonality.

“A strong demand recovery in September 2020 (10-12 per cent yoy) and continued demand tailwinds in early October 2020 underpin the price strength. Cost headwinds should hit from end of 3QFY21 and price hikes, if sustained, would offset the impact on margins and drive earnings upgrades,” Kotak Institutional Equities said in a report.

The distribution of rise in cement prices indicates that consumers revival has happened across the country. Prices in North and Central markets increased 5 per cent m-o-m on a sharp uptick in demand led by easing of lockdown restrictions and return of migrant labour to metro cities supporting non-trade demand.

Prices remained stable m-o-m in East and West India while prices in South increased 2 pet cent mom after strong demand recovery in September 2020.

Historically, cement prices correct by 2-3 per cent qoq in 3Q due to seasonality. However, in 3QFY21E prices are up 1 per cent qoq led by higher prices in North and Central markets, the brokerage report said.

While government estimate suggests that demand declined 15 per cent yoy in August 2020 in the country and declined by 29 per cent yoy YTD FY2021. However, channel checks by the brokerage suggests that strong demand in September 2020 (+10-12 per cent yoy) more than offset the weakness in early 2QFY21.

South, where demand was worst-hit in April-August 2020, too witnessed 3-5 per cent yoy demand growth in September 2020 led by Andhra-Telangana.

Initial feedback suggests that demand tailwinds have continued in October 2020. We expect industry volumes to decline by 12.5 per cent yoy in FY2021E. We see grinding and clinker capacity addition at 4 per cent/3 per cent CAGR over FY2020-23E versus demand at 3 per cent CAGR.

Continue Reading

Business

CMS launches AI-automated ATM security software ‘Algo’

Published

on

By

SBI ATM. (File Photo IANS)
SBI ATM. (File Photo IANS)

Mumbai, Oct 14 (IANS) CMS Info Systems (CMS) has announced the launch of fully automated, Artificial Intelligence-powered ATM security software application ‘Algo’.

CMS Algo is an end-to-end security encrypted a fool-proof solution to prevent ATM frauds at the time of cash replenishment or maintenance, the company said in a statement.

The application is machine-agnostic and can operate on any ATM manufactured by any OEM.

Rajiv Kaul, Executive Vice Chairman, Chief Executive Officer and Whole-time Director of CMS Info Systems, said: “This application can run on any ATM across the world and helps in fraud prevention. The solution is cost-effective in the back-end and low cost in the front-end.”

“The biggest saving is the reduction of fraud, no requirement of a call centre, and restricted access to data and premises,” he said.

He noted that the company has deployed Algo on 52,000 ATMs in India.

Continue Reading

Business

CCI okays Tube Investments’ stake buy in CG Power

Published

on

By

Competition Commission of India
Competition Commission of India

New Delhi, Oct 14 (IANS) The Competition Commission of India (CCI) has approved the acquisition of shares in CG Power and Industrial Solutions Ltd by Tube Investments of India Ltd.

The proposed combination envisages acquisition of more than 50 per cent of the equity share capital of CG Power and Industrial Solutions Ltd (CG Power) by Tube Investments of India Ltd (TIIL).

TIIL is a listed entity and is part of Murugappa group. It has three business verticals including engineering, metal formed products and bicycles. It is engaged in the manufacture of a wide range of products for automotive, railway, construction, mining and agriculture industries.

Also a listed entity, CG Power has two major business units — power systems and industrial systems.

The power systems business unit focuses on power transmission, distribution, power solutions, setting up of integrated power systems among others.

Continue Reading

Business

Uber hires Amazon veteran to lead mobility teams in Bengaluru

Published

on

By

Manikandan Thangarathnam
Manikandan Thangarathnam

Uber on Thursday announced it hired Amazon veteran Manikandan Thangarathnam as senior director to lead all rider and platform engineering teams in Bengaluru.

Uber said it is also hiring 85 more engineers in the country. This is in addition to hiring 140 engineers the ride-hailing service announced last month.

“As the world steps into a new normal, adaptability is going to be a key aspect to usher in growth. I look forward to leading the bright minds at Uber and innovating together for the world, one ride at a time,” said Mani.

At Amazon, Mani helped build several core platforms and products.

He led engineering efforts for the Amazon Appstore and was instrumental in bootstrapping the tech major’s Chennai office and building a vast team of engineers.

The Rider mobility team works on the challenge of enabling the next billion trips by building new services including high capacity vehicles (Uber bus), and car rentals, among others.

The company said the Marketplace team is building a highly-available and scalable self-serve gateway to configure, manage, and monitor Application Programming Interfaces (API) of every business domain at Uber.

Uber recently hired another Amazon veteran Jayaram Valliyur as senior director to lead its global finance technology team, spread across multiple geographies.

Continue Reading

Business

OnePlus investing Rs 100 crore to boost retail footprint in India

Published

on

By

OnePlus to launch 2 Nord smartphones on Oct 26
OnePlus to launch 2 Nord smartphones on Oct 26

Smartphone maker OnePlus is committed to invest Rs 100 crore towards deeper market penetration by taking premium offline experience beyond metro cities and expanding its reach through new online and offline retail partnerships, a top company executive said on Thursday.

With over 5,000 offline stores including partnered stores across the country, the smartphone maker is planning to scale up to more than 8,000 stores in the coming quarters, Navnit Nakra, VP and Chief Strategy OnePlus India told IANS.

“At present, we have over 30 OnePlus experience stores across India and will be opening 14 new experience stores in the next six months.

“We’ll launch our biggest experience store globally, the OnePlus Nizam Palace in Hyderabad later this year. We are also working towards covering 100 cities through our service centre network in the next year,” Nakra informed.

The smartphone maker launched its India R&D centre in 2019 and is committed to achieve long-term growth in the country.

Currently, the company has 300 employees in the R&D team and hope to double that number in the coming months.

Nakra said that India continues to be a key market for OnePlus since the brand’s entry in 2014.

“We began our commitment to Make in India initiative in February 2018 and since then, we have been manufacturing our devices in the country. We have also commenced the manufacturing of the OnePlus TVs and OnePlus Nord in India,” Nakra told IANS.

By 2021, all OnePlus TVs will be manufactured locally in India.

“On our smart TV portfolio, we commenced the manufacturing of the Y series in India and by 2021, all OnePlus TVs will also be manufactured locally including the Q and the U series,” Nakra informed.

He said that 100 per cent of OnePlus smartphones are being manufactured in India including OnePlus 8 series, OnePlus Nord and the recently launched OnePlus 8T.

OnePlus has launched its new flagship 5G smartphone the ‘OnePlus 8T’ with 120Hz Fluid AMOLED display and quad-camera set up, in India.

The OnePlus 8T will be available in two colours, aquamarine green and lunar silver at Rs 45,999 (12GB RAM+ 256GB internal storage) and Rs 42,999 (8GB RAM+128GB internal storage).

“OnePlus is consistently exploring opportunities to fuel its growth and meet the needs of more users, by starting to strategically diversify into new product categories and new price points but, at the same time, not compromising on our OnePlus promise,” Nakra told IANS.

OnePlus Nord series is also likely to get new entrants this month, according to multiple reports.

The rumoured OnePlus Nord N10 5G and OnePlus Nord N100 are said to be launching as soon as the end of October, first in the US market.

Continue Reading

Trending

Hey, wait!

Do you want to receive important news straight to your inbox every week?