The operation, conducted June 21 to June 23 in 57 cities, rescued 79 children as young as 13 years old being held against their will and forced to work as prostitutes, said Kevin Perkins, an FBI official, at a briefing today for reporters in Washington.
This is the sixth nationwide operation targeting child prostitution coordinated by the Federal Bureau of Investigation since 2008, Perkins said.
The report also says that about 101 inmates of the home were subjected to various forms of abuse. The shelter home inmates were used as construction labourers.
A speech and hearing impaired girl was sold thrice and another girl was reportedly found pregnant. Yet another inmate was found to be HIV positive by the probe team.
Most of the girls were made to garland men, saying they were 'married', and forced to consent to physical relationship.
Few weeks ago, Government of India passed a bill called The New Protection of Children from Sexual Offences Act (PCSOA) 2012. Will it be strong enough to prevent this kind of anti human activity and punish the criminals to the extent that it won't happen again. This breaking news is shocking reality that how Indian Government is ineffective in terms of policies.
Oracle Corp Employee caught in sex-for favors corruption case !..
A female employee of computer giant Oracle's Singapore unit was named on Tuesday in a sex-for-favors corruption case involving the former head of the city-state's anti-narcotics agency.
Ng Boon Gay, then director of the Central Narcotics Bureau, faces two charges of obtaining sexual gratification from a senior sales manager at Oracle Corporation Singapore as an inducement to help further the firm's business interest, Singapore's anti-corruption agency said.
The alleged offences took place in December 2011.
Ng also faces two other charges of obtaining sexual gratification from the same individual when she was an employee of Hitachi Data Systems (HDS), according to court documents seen by Reuters.
"Any alleged inappropriate behavior attributed to our former employee during her time at HDS was undertaken without the knowledge of, or being condoned by, anyone at HDS," a Hitachi spokeswoman said in an emailed statement to Reuters.
A Oracle Singapore spokeswoman declined comment.
Ng is currently out on bail.
The charges against Ng come one week after the former head of Singapore's civil defense force Peter Lim was charged with accepting sex for favors.
Lim faces 10 charges and his case involved three different women working for IT firms in the city-state.
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| Oracle Corp |
A female employee of computer giant Oracle's Singapore unit was named on Tuesday in a sex-for-favors corruption case involving the former head of the city-state's anti-narcotics agency.
Ng Boon Gay, then director of the Central Narcotics Bureau, faces two charges of obtaining sexual gratification from a senior sales manager at Oracle Corporation Singapore as an inducement to help further the firm's business interest, Singapore's anti-corruption agency said.
The alleged offences took place in December 2011.
Ng also faces two other charges of obtaining sexual gratification from the same individual when she was an employee of Hitachi Data Systems (HDS), according to court documents seen by Reuters.
"Any alleged inappropriate behavior attributed to our former employee during her time at HDS was undertaken without the knowledge of, or being condoned by, anyone at HDS," a Hitachi spokeswoman said in an emailed statement to Reuters.
A Oracle Singapore spokeswoman declined comment.
Ng is currently out on bail.
The charges against Ng come one week after the former head of Singapore's civil defense force Peter Lim was charged with accepting sex for favors.
Lim faces 10 charges and his case involved three different women working for IT firms in the city-state.
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| Nupur Mehta |
Mehta's name first surfaced in March this year when a UK daily carried out a sting operation on a Delhi bookie. The sting was done to investigate allegations of match-fixing during the 2011 ICC World Cup held in India, Sri Lanka and Bangladesh. The sting raised suspicions about Mehta being used by bookies to lure players. Although her name was not mentioned by the paper, a blurred image of Mehta was carried along with the story.
"I was quizzed for two-and-a-half hours by the ICC official and they are satisfied with the answers I have provided," Mehta told TOI on Monday. She added that the ICC asked her for names of cricketers who she claims are her social friends, and she provided them.
"I have many friends who are cricketers and with whom I socialize -- Yuvraj (Singh), Parthiv (Patel), Ishant (Sharma). I also know a lot of international players," said Nupur. In the past she has also claimed to have dated Sri Lankan batsman Tillakaratne Dilshan.
When asked about her photograph published in the UK daily, she said she wasn't aware of any bookie nexus and was of the opinion that the daily must have used her photograph to cite her familiarity with international cricketers. "I don't know any bookie and I have no connections with anybody," said Mehta.
The actress, who has only one Bollywood movie (Jo Bole So Nihal) to her credit, said the ICC official kept asking her about how she came to be in touch with the cricketers. "I met them (cricketers) through my event management company and have accompanied them to parties where I kept getting introduced to more players," she said, adding that one player bumped into her in a pub.
"This player was sitting a few feet away and I did not know who he was. After some time he walked up to me to introduce himself. That's how we became friends," Mehta said. She claimed that he then introduced her to other players.
ICC sources, meanwhile, have rubbished Mehta's claims. While they confirm that Peacock did meet Mehta in Mumbai, they said it was for routine questioning. "She's not the only one. From time to time, we have been questioning people -- from cricketers to sponsors. We don't have anything to say on this (Mehta's comments)," said an official in the know of developments.
Cricket Kenya have confirmed that the International Cricket Council (ICC) has launched an investigation into alleged spot-fixing by a Kenya player during a 2011 World Cup pool match against Pakistan. Kenya bowled a record-equaling 37 wides in that match in Hambantota en route to a 205-run hammering.
Tom Sears, the Cricket Kenya chief executive, told Press Association Sport that his body was aware of an investigation into the alleged fixing. "We have been told to refer all enquiries to the ICC, we are in contact with them and are aware that there is an investigation," he said. "Apart from that we can't say much more other than we will co-operate fully with the ICC over this."
The ICC, however, chose not to comment. "This is a matter for the (ICC's) Anti-Corruption Unit and is not something that we would comment on as a matter of policy,” said an ICC spokesperson.
Kenya fared poorly in the 2011 World Cup, failing to win a single Group A match. Following their dismal performance, Cricket Kenya launched a stern review of the team’s performance which resulted in several senior players not being offered new contracts.
Tom Sears, the Cricket Kenya chief executive, told Press Association Sport that his body was aware of an investigation into the alleged fixing. "We have been told to refer all enquiries to the ICC, we are in contact with them and are aware that there is an investigation," he said. "Apart from that we can't say much more other than we will co-operate fully with the ICC over this."
The ICC, however, chose not to comment. "This is a matter for the (ICC's) Anti-Corruption Unit and is not something that we would comment on as a matter of policy,” said an ICC spokesperson.
Kenya fared poorly in the 2011 World Cup, failing to win a single Group A match. Following their dismal performance, Cricket Kenya launched a stern review of the team’s performance which resulted in several senior players not being offered new contracts.
According to Reuters, a scandal is brewing over Facebook's actions in the hours before its IPO last Friday. Attention is focused on why underwriters revised their revenue forecasts down during the Facebook IPO roadshow, because this is a highly unusual move that casts a very negative light on Facebook. Other reports at Business Insider suggest that three underwriters who downgraded their revenue projections did so at the behest of a Facebook executive who'd had knowledge of weaker than expected Q2 performance. This information was then conveyed to selected institutional investors, in order that they may protect their income, but not broadcast to the entire investment community. Details are not forthcoming, and BI notes all parties have declined to comment. At the least this news is an uncomfortable PR matter at a critical moment, and at worst the SEC and FINRA may find Facebook guilty of financial misconduct.
Now the sting operation by one news channel exposed that IPL matches are fixed and how that is happening, BCCI will started looking in to tapes. It will start look into the matter immediately Read Below.
The BCCI has responded to an IPL 5 match-fixing sting operation done by an Indian TV channel, saying they are examining the tapes to confirm whether the claims have any veracity. The board's honorary secretary Sanjay Jagdale released a statement a couple of hours after the news of the operation broke out.
"Some TV channels have been reporting a story pertaining to alleged unacceptable practices by players participating in the IPL. The BCCI will not tolerate any violation of regulations and any act of corruption. The complete footage of the 'sting operation', will be sought and examined thoroughly. The GC [Governing Council] will meet on an emergent basis to review the footage and take appropriate strict action," it read.
Earlier, the TV channel reported that many Indian and international players were involved in match-fixing. A few owners were also involved in influencing the outcome of the matches. Some players in the sting operation also disclosed that they have tried to negotiate a bigger financial contract with some of the other IPL franchises, a serious non-adherence to the IPL player guidelines. Once the deal is finalised the players are paid under the table. Also that the match-fixing was not only prevalent in the IPL but also in the first class matches with beautiful women playing a key role.
When asked about the sting operation, BCCI chief N Srinivasan said, "We will ensure that the integrity of the game is protected. BCCI believes in the integrity of the game. We will take the strictest possible action. We will have to have the tapes and the moment we see it, whoever is the player, we will take very very strict action."
"If there is any truth in it ... It is a fact that we will take strictest action. Even if it means suspending the player immediately. But [that has to be] based on some evidence and fact, for which I have asked the COO of IPL, Sundar Raman, to request for the tape."
Young women simulated oral sex with a Greek statue at a party hosted by former Italian prime minister Silvio Berlusconi, a witness said on Monday at a trial where he is accused of paying for sex with an underage prostitute.
Chiara Danese, a 20-year-old beauty contest winner, had tears in her eyes as she told a Milan court that Berlusconi asked the women to play sex games with a nude statue of the ancient fertility god Priapus.
"He touched the girls while they simulated oral sex with the statue," she said.
"Then Berlusconi, whom the girls called 'daddy' and he called 'my babies', also had them kiss him in his private parts. The girls meanwhile chanted 'thank God for Silvio'. I and (fellow guest) Ambra were shocked."
Berlusconi's lawyer Niccolo Ghedini offered Danese a tissue to wipe away her tears while she testified about the August 2010 party.
Berlusconi, 75, is charged with paying for sex with Moroccan-born Karima El Mahroug in 2010, when she was 17, and then abusing the powers of his office by getting her freed from police custody after she had been arrested for theft.
Prosecutors say that dozens of showgirls and aspiring starlets received cash and other gifts for taking part in sex games at his Milan home.
Berlusconi, who denies the charges, says he was only helping the young women out of generosity and accuses magistrates of mounting a politically biased campaign against him. He says his parties were "elegant, convivial dinners".
Danese and her friend Ambra Battilana are seeking damages in a separate trial where three associates of Berlusconi are accused of procuring prostitutes for him.
They said they lost job opportunities because of the bad publicity surrounding the women who attended the former prime minister's parties.
Berlusconi, a billionaire media tycoon, was forced from power in November after his repeated failure to pass tough austerity measures led to a crisis on bond markets alarmed at the weakness of the government in the euro zone's third largest economy.
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| Silvio Berlusconi |
"He touched the girls while they simulated oral sex with the statue," she said.
"Then Berlusconi, whom the girls called 'daddy' and he called 'my babies', also had them kiss him in his private parts. The girls meanwhile chanted 'thank God for Silvio'. I and (fellow guest) Ambra were shocked."
Berlusconi's lawyer Niccolo Ghedini offered Danese a tissue to wipe away her tears while she testified about the August 2010 party.
Berlusconi, 75, is charged with paying for sex with Moroccan-born Karima El Mahroug in 2010, when she was 17, and then abusing the powers of his office by getting her freed from police custody after she had been arrested for theft.
Prosecutors say that dozens of showgirls and aspiring starlets received cash and other gifts for taking part in sex games at his Milan home.
Berlusconi, who denies the charges, says he was only helping the young women out of generosity and accuses magistrates of mounting a politically biased campaign against him. He says his parties were "elegant, convivial dinners".
Danese and her friend Ambra Battilana are seeking damages in a separate trial where three associates of Berlusconi are accused of procuring prostitutes for him.
They said they lost job opportunities because of the bad publicity surrounding the women who attended the former prime minister's parties.
Berlusconi, a billionaire media tycoon, was forced from power in November after his repeated failure to pass tough austerity measures led to a crisis on bond markets alarmed at the weakness of the government in the euro zone's third largest economy.
The judge presiding over the spot-fixing trial has instructed the jury at a London Court on Tuesday to accept that Mohammad Amir and agent Mazhar Majeed were involved in fixing.
Former Pakistan Test captain Salman Butt and fast bowler Mohammad Asif face charges of conspiracy to cheat, and conspiracy to obtain and accept corrupt payments, following a Lord's Test in August last year when they allegedly conspired with Majeed, Amir and other people unknown to bowl pre-planned no-balls. Butt and Asif deny the charges.
The comments came as the judge began his summary of the trial at Southwark Crown Court and were the first official guidance given to the jury on Amir and Majeed. However, the judge added that their apparent guilt should not bias the fate of Butt and Asif.
"You can proceed on the basis that Majeed and Amir were involved in the spot-fixing at Lord's, as all parties agree that is the case," Justice Cooke told the jury. "But don't be concerned at their absence."
"You should return true verdicts according to the evidence. Don't let sympathy enter your verdicts and don't speculate on what you might have heard outside of this courtroom. You should base your decision on the evidence alone and draw inferences, which I mean by drawing common sense conclusions."
Earlier, Butt's lawyer Ali Bajwa completed his closing arguments, stressing that it was possible for no-balls to have been fixed without the knowledge of his client.
He suggested there was a criminal conspiracy between Majeed and Amir and possibly Asif, but insisted that Butt played no part in any spot-fixing that might have occurred.
"The prosecution doesn't want the truth to get in the way of a jolly good theory but you have to go on evidence, not suspicion. Guess work cannot play a part in your deliberations," Bajwa said.
In his closing, Asif's lawyer Alexander Milne urged the jury to "follow the money" after police failed to find any marked cash from an undercover reporter in his client's room during initial police raids.
"Where did that 150,000 Pounds (that Majeed took from the undercover reporter) go?" Milne asked the jury. "It went to Mr Butt and Mr Amir. It's up to you members of the jury what conclusions you draw from that but none of that money went to Mr Asif.
"If Majeed was that keen to pay Mr Asif, he would have found a way. If you follow the money, you will find that it does not lead to Mr Asif," Milne added.
Country Natural resources looted by Reddy Brothers - Save India
KAR – NATAK KA ASLI NATAK
Rs. 50,000 Cr. Of natural resources are looted; In just 3 years and are illegally exported to
CHINA & PAKISTAN
All 3 brothers are ministers in same Government
They sleeps and sits On gold beds and chairs worth 45 cr.
Diamond Crown worth 100 Cr in their Living room
40 Cr gold Crown for lord Tirupati by Reddy's. Janardhana Reddy donated a diamond-studded crown worth over Rs 40 crore to Tirupati, and has another at his residence in Bellary. This is the costliest donation offered to Lord Venkateswara ever
CBI finds gold spoons and plates worth 5 Cr
There house in Bellary worth 120 Cr
Owns 5 helicopters and planes; the Reddy brothers would heli-hop between Bellary and Bangalore even for lunch or dinner
A number of luxury cars line the Reddy homes, ranging from Bentleys and Mercs to the latest SUVs and Range Rovers.
Oregon Democratic Congressman David Wu, accused of an unwanted sexual encounter with a campaign donor's teenage daughter, said on Tuesday he will resign his seat to defend himself against "these very serious allegations."
The decision by Wu, 56, to step down came a day after he announced he would not seek an eighth term in office, as Nancy Pelosi, the top-ranking Democrat in the House of Representatives, referred the matter to the House Ethics Committee for investigation.
Wu becomes the latest in a long line of politicians from both parties to become caught up in sex scandals over the years, and the second House Democrat in little over a month to have his tenure cut short by such a controversy.
New York Representative Anthony Weiner resigned in June after he admitted lying about sending lewd photos of himself to women over the Internet.
Wu's conduct has been called into question previously. He acknowledged earlier this year he was undergoing psychiatric treatment after his staff complained of erratic behavior, including his e-mailing of a picture of himself dressed in a tiger costume.
Wu, the first Chinese-American elected to Congress, did not give a precise date for his resignation, saying only that he planned to step down "effective upon the resolution of the debt-ceiling crisis." Congress faces an early August deadline to pass legislation raising the nation's debt ceiling to avoid a U.S. default on its obligations.
While he made no explicit mention of the exact misconduct he is accused of, Wu said in his statement, "I cannot care for my family the way I wish while serving in Congress and fighting these very serious allegations."
SPECIAL ELECTION
Wu represents Oregon's heavily Democratic 1st Congressional District, which encompasses the western side of Portland, the state's largest city, as well as more rural areas in Oregon's northwestern corner.
The governor will call for a special election to fill Wu's seat for the remainder of his term.
Two other Democrats already had declared their intention to challenge Wu in next year's primary before the scandal broke -- state labor commissioner Brad Avakian and state lawmaker Brad Witt of Clatskanie, Oregon, northwest of Portland.
No Republicans have immediately announced plans to run. But Oregon Republican Party Chairman Allen Alley called the 1st District "absolutely a winnable Republican seat," citing what he described as a shift in the national political tone.
Although Democrats account for 42.4 percent of registered voters in the district, compared with 30.1 percent for Republicans, a sizable bloc, 27.5 percent, are registered as independent. In 2010, Wu's Republican challenger, Rob Cornilles, lost by 10 percentage points.
The latest allegations against Wu surfaced last week when the Portland Oregonian reported the daughter of a high school friend who contributed to Wu's campaign accused him of making an unwanted sexual advance around Thanksgiving of last year.
Details of the nature of the alleged encounter have not been disclosed. Wu has not denied the accusation and has acknowledged more than once the allegation was "serious."
The Oregonian newspaper said Wu's accuser, who has not been identified, was from Orange County, California, graduated from high school in 2010, and was 18 at the time of the incident.
In the wake of one of the biggest dope scandals in the country, the government on Thursday appointed Justice (retd) Mukul Mudgal to inquire into all aspects of the fiasco.
India's top eight athletes, including three members of the Commonwealth Games and Asiad gold medal winning sprinters, had tested positive for anabolic steroids in out-of-competition testing.
The one-member committee, which will be assisted by NADA's senior Project Manager V Jayaramaan, has been asked to submit its report within six weeks.
As per the terms of reference stated in the Sports Ministry's order issued on Thursday, the Committee has been asked to "determine the facts and circumstances leading to large scale recent incidents of alleged doping in Athletics discipline."
Justice Mudgal, former chief justice of Punjab and Haryana Hight Court, will also "examine reasons for such large scale prevalence of doping and modus operandi involved, including availability of the prohibited substances in and around training camps/competitions."
The committee will "enquire into the role of agencies involved, if any. Suggest remedial measures to improve the protocols of dope testing and its integrity and promptness so that such lapses, if any, do not happen in future."
Indian athletics was rocked by a doping scandal recently when eight athletes, including Ashwini Akkunji, Mandeep Kaur and Sini Jose, who were part of the CWG and Asian Games gold-winning relay quartet, tested positive for banned substances.
The chief TV rights holder for Serie A matches issued a demand to Italian authorities Saturday to take strong action to prevent more match-fixing.
Sky Italia CEO Tom Mockridge wrote in a front-page editorial in Corriere della Sera that “whoever controls the outcome and future of this sport” should issue “a serious and definitive signal” that it plans to break with the past.
“That's the only way a partner like Sky can continue to guarantee its viewers” authentic football matches, Mockridge said, adding that “specifically because of the authenticity of those emotions, we've invested billions of euros in recent years.”
Sixteen people were arrested in Italy last week for alleged involvement in a widespread match-fixing and betting ring. Some 18 matches — mostly in Serie B and C — are under investigation by prosecutors in Cremona, where the probe is based, and preliminary hearings have suggested Serie A matches could also be involved.
On Friday, the Italian government introduced a task force to combat match-fixing but said it has no plans to limit legal betting on games.
The investigative task force will be composed of representatives from the interior ministry, sports federations and the treasury ministry and will have the power to use police forces in case organized crime is involved.
The Italian game was also hit with a major match-fixing scandal in 2006, which resulted in Juventus being relegated to Serie B plus penalties for several other clubs. Court cases from the 2006 scandal are still under way.
Did the Swedish king visit strip clubs, and why did his friend seek a gangster's help to snuff out the scandal? Those questions have the nation in a tizzy and are posing the monarchy its most serious challenge during Carl XVI Gustaf's nearly four decades on the throne.
The media, much less enthralled by the royal family than the public, is attacking the 65-year-old monarch with unprecedented fury.
One leading newspaper has even urged the king to step down. Others suggest he should go if it turns out he was lying when he denied visiting strip clubs in the U.S. and Slovakia, claims first presented in a book published last year.
"His reputation has of course been hurt by this and he's had a difficult time defending himself," said royal commentator and writer Roger Lundgren. "But this has certainly taken on proportions that are approaching the grotesque."
At the heart of the scandal is "The Reluctant Monarch," a book released in November that for the first time put into print long-standing rumors about the private life of Carl Gustaf, who has three adult children with his German-born wife, Queen Silvia.
The book alleged that the king had a secret love affair in the 1990s and described how he and his friends frequented private night clubs in Stockholm where they were entertained by scantily clad women. It also claimed he visited exclusive strip clubs during foreign visits — in Atlanta during the 1996 Olympics and in Slovakia in 2008 — citing former employees of those establishments.
Many of the allegations are poorly sourced and critics say the book, which was presented as a biography, amounts to nothing more than a gossip magazine in hard cover.
The king's supporters say he's the victim of a malicious slander campaign fueled by republican forces who normally don't get much attention in Sweden.
Most Swedes want to preserve the constitutional monarchy even though it's widely seen as contradicting the principles of democracy and equality that underpin Swedish society. The monarchy's survival hinges to a large degree on its popularity.
"The Swedish royal court, like the Danish and Norwegian, depends on widespread trust from the public," political editor Peter Wolodarski wrote in the Stockholm daily, Dagens Nyheter. "The day people start to doubt whether the top representatives of the royal court are telling the truth, they (the royals) live dangerously."
A recent poll showed about 44 percent of the Swedes wanted Carl Gustaf to remain king, while 17 percent said he ought to give way to his eldest daughter, the popular 33-year-old Crown Princess Victoria.
Research institute TNS-Sifo interviewed 1,000 people for the May 25-26 poll. The margin of error was 2 to 3 percentage points.
A similar poll around 12 months ago, showed 64 percent of Swedes wanting the king to stay on the throne.
Carl Gustaf first addressed the allegations in a somewhat confused monologue to reporters at his annual moose hunt in November, saying his family was "turning the page." He didn't deny the allegations, which was seen by many as a partial admission.
It might have been expected to end there. After all, the king was not accused of anything illegal and Swedes don't get into a moral panic about extramarital affairs. But the question of strip club visits — frowned upon in Sweden's egalitarian society — would not go away.
And suggestions the king may have spent hefty sums on such visits raised questions about whether the public should be provided more information about how the royal court uses its annual 122 million kronor (nearly $20 million) taxpayer-funded stipend.
In May, the story took a new twist when Swedish Radio aired a secret recording in which one of the king's friends, Anders Lettstrom, was heard discussing the scandal with a reputed gangland figure. Their conversation centered on Mille Markovic, a former night club owner and a key source in the book who claims to have pictures of the king's entourage in compromising situations.
Swedish Radio broadcast parts of a conversation where Lettstrom wanted to know exactly what material Markovic had and how much it would cost to make him hand it over.
After initial denials, Lettstrom issued a statement to Swedish news agency TT admitting he had contacted criminals in a misguided attempt to find out "how so many lies about me and others" could have been spread in the book about the king. Lettstrom said he had acted alone and that the king knew nothing about it.
Under mounting media pressure, the king agreed to an interview with TT about his private life on Monday. In the interview, Carl Gustaf rejected any knowledge of Lettstrom's contacts with criminals and said he no longer considered Lettstrom a friend. He also denied having visited the specific strip clubs mentioned in the book.
In answer to whether he had ever visited a strip club, the king asked the reporter to define what exactly he meant by one, then recalled a visit to a cabaret in Paris.
The interview didn't go down well with the public or the media.
Tabloid Aftonbladet, one of Sweden's biggest newspapers, called on the king to abdicate, saying his credibility had been tainted.
"If it turns out that the king lied straight into (Swedes') faces, we could be one step closer to a republic," another newspaper, Goteborgs-Posten, said in an editorial.
The TT reporter also asked the king whether the situation had made the monarch think about passing the crown to Victoria.
"I think that's hard to understand, that question. It's not relevant," the king said. "By tradition and custom, that's not how it works."
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
FIFA and Nigeria's soccer federation are investigating Argentina's 4-1 loss in Nigeria on Wednesday after betting patterns suggested it was targeted by match fixers.
It is the highest profile match yet in a wave of suspicious recent international exhibitions, often with goals scored from penalty kicks.
The match "was one that we had an active interest in, and forms part of a wider ongoing FIFA investigation," soccer's world governing body said Saturday.
FIFA was "working closely" with its betting monitoring agency, Early Warning System, which tracks wagers placed with more than 400 operators worldwide.
A second-string Argentina team was outplayed by Nigeria, which earned its first victory over the South Americans in a one-sided match.
The Nigeria Football Federation, which organized the match, said it would help FIFA's investigation and also set up its own inquiry, but denied any knowledge of match fixing, stressing it was "unaware of any suspicious motives in this game."
"We will put all these measures [the inquiry] in place in the spirit of fair play and transparency," NFF General Secretary Musa Amadu said in a statement. "But we would still insist that, until it is proven beyond doubt, we believe that we won this match fair and square ... There remains, to the best of our knowledge, no untoward motives to this game than to play it fairly and win it fairly."
Argentina coach Sergio Batista, talking Saturday at a press conference in Warsaw ahead of his team's exhibition against Poland on Sunday, said he "did not notice anything alarming" during the Nigeria match.
Hours before kick-off at the National Stadium in Abuja on Wednesday, FIFA President Sepp Blatter launched his "Zero Tolerance" campaign to stop corruption in soccer.
FIFA's 208 member nations in Zurich also passed new rules to control the organization of international matches, including the power to veto referee appointments.
Referee Ibrahim Chaibou of Niger awarded two penalties — one to each side — in Wednesday's game between two teams who played each other at the 2010 World Cup in South Africa.
Nigeria took a 2-0 lead with a 26th minute spot-kick after Chaibou awarded a foul against Argentina defender Federico Fazio.
Five minutes of stoppage time were announced at the end of the match, with play continuing until the 98th minute, when Argentina scored with a penalty kick from Mauro Boselli.
Argentina's spot kick was awarded by Chaibou for a debatable handball after the ball appeared to strike a Nigerian defender on the shin and then bounce up and hit a teammate on the thigh.
Argentina fielded a below-strength lineup without star forwards such as Lionel Messi, Gonzalo Higuain and Angel di Maria.
However, there was no suggestion that players from either team were involved in manipulating the match.
Chaibou is one of the most experienced FIFA-approved referees with 15 years' service on the international list. He was born in 1966 and must step down this year on reaching FIFA's referee age limit of 45.
As match-fixing investigations develop across the world, FIFA announced last month it would pay Interpol US$29 million over the next 10 years to educate referees, players, coaches and officials in how to resist corruption.
"FIFA is currently receiving lots of information and co-operation across Europe, Asia, Africa and South and Central America, and as an organization we are committed to tackling this problem in the most vigorous way possible," the governing body said.
( Source: The Associated Press )
In a latest news video from TV9, It was found that Suresh Raina ( Indian Cricket Team Captain for current India V WI series, in the absence of Mahendra Singh Dhoni ) went to pray God at Shirdi and a Bookie ( Match Fixer ) was found standing next to him. Video shows a clearly that bookie was standing next to Suresh Raina. It was really concerned for Indian Cricket Team that Raina might be involved in match fixing. This serious matter will be probed by Cricket Council of India. Raina denied any linkage with match fixing or with bookie.
Earlier, Raina was also suspected as he was found with a strange unknown girl before Asia Cup final in Srilanka. ICC had started probing the matter but BCCI ( Board of Council for Cricket in India ) had intervened the matter and remove him without any charges.
Below is the News Video from Tv9 news channel.
Who will bell this cat
Much bigger than the A Raja-Kalaignar TV kickback is the Rs 700 crore that the Maran brothers got from Maxis. Ashish Khetan traces the money trail with Raman Kirpal
IN CASES of corruption involving a nexus between public servants and private persons, investigating agencies always look for evidence of quid pro quo — the private player bribing the public servant, in cash or kind.
In January, the CBI traced out a money trail between real estate tycoon Shahid Usman Balwa and Kalaignar TV. After Balwa's company Swan Telecom was granted precious 2G spectrum, he had transferred Rs 200 crore to the TV channel owned by Karunanidhi's family. The agency thought it qualified as adequate evidence to nail Kanimozhi, Karunanidhi's daughter and owner of 20 percent equity in the channel.
"It was not a genuine business transaction but in the nature of illegal gratification paid in lieu of the UASL (Unified Access Service Licences), valuable spectrum and other undue benefit given by accused public servants to Swan Telecom," the CBI concluded in its supplementary chargesheet filed on 26 April.
According to sources, the CBI has now trained its guns on a strikingly similar deal — though the quantum is almost four times that of the Balwa-Kalaignar transaction — between Sun TV Group, owned by the family of Union Textiles Minister Dayanidhi Maran, and Malaysian business conglomerate Maxis Group and owner of 74 percent direct equity in Aircel Group, the country's seventh biggest telecom operator.
In November 2006, then Telecom Minister Maran granted 14 (UASL) for Aircel. The licence, along with the startup 2G spectrum, was awarded at the same price at which later Raja gave away 2G licenses to Swan, Unitech and a host of other players in 2008 — Aircel paid Rs 1,399 crore for 14 telecom circles, the price was arrived at through an auction process in 2001 when the telecom industry was in its nascent stage.
The telecom licences to Aircel were awarded after about two years of 'unwarranted' delay on the part of the DoT headed by Maran at the time. Aircel's applications for new circles were pending since Maran's takeover as minister for communications and IT in May 2004. According to the report prepared by the one-man committee of Justice (retired) Shivraj Patil constituted to examine the appropriateness of procedures followed by DoT in issuing licences during the period 2001-2009, the DoT kept raising 'irrelevant', 'vague' and 'unwarranted' queries about different aspects related to Aircel and kept the applications pending (Patil submitted his report to present Telecom Minister Kapil Sibal on 31 January).
It was only after March 2006, when Malaysian business tycoon T Ananda Krishnan, whose parents were Sri Lankan Tamils, bought 74 percent stake in Aircel, that its file gained momentum. Until then the company was owned by C Sivasankaran, the chairman of Siva Group (earlier known as Sterling Infotech Group). Krishnan paid Rs 3,390.82 crore for 74 percent equity in Aircel. Today, Aircel is the seven biggest telecom operator in the country with its net worth valued in the range of $7.5-$8 billion.
Six months after Ananda Krishnan's takeover of Aircel, the ministry granted Aircel the much-vaunted licences in 14 cash-rich circles. This took Aircel from a small regional player to a pan-India operator. If the CAG (Comptroller and Auditor General) valuation of 2G licences is taken as a yardstick, the value of Aircel licences cleared by Maran would amount to approximately Rs 22,000 crore. But Aircel paid just Rs 1,399 crore.
And in a curious coincidence, in February 2007, four months after the licences were granted to Aircel, Ananda Krishnan through one of his group companies, South Asia Entertainment Holding Ltd (SAEHL) invested $150 million (roughly Rs 600 crore) in a phased manner in Sun Direct TV Pvt Ltd by acquiring 20 percent equity in the company owned and run by Dayanidhi's brother Kalanidhi and his wife Kaveri Maran. The equity investment was cleared by the Cabinet Committee on Economic Affairs.
Almost simultaneously, the Maran family was allotted about 12.6 crore additional equity shares in Sun Direct TV to maintain their total equity at 80 percent. But unlike the staggering rate at which the Maxis Group picked up the Sun Direct shares, the allotment to the Marans was made at par value of Rs 10 per share without charging any premium.
Was Sivasankaran of Siva Group, a $3 billion conglomerate with diverse interests, harassed by Maran? Was he pressurised into selling Aircel to Ananda Krishnan?
One could argue that either the Maxis investment was overvalued, in which case the Marans were the ultimate beneficiary as they were the majority stakeholders and the Maxis deal brought the much-needed cash for the expansion of Sun Direct TV's business operations. Or the fresh equity allotment to the Marans was undervalued, which again makes them the real beneficiaries. Also, the DTH company was running in losses at the time of this deal. The annual report of Sun Direct TV for the year 2007- 08 showed their aggregate revenue as Rs 61.16 crore while its losses amounted to Rs 73.27 crore.
Between February 2008 and July 2009, the Maxis Group invested Rs 100 crore more in another Maran family-owned company named South Asia FM Ltd which owns Sun FM radio network. Maxis Group subsidiary South Asia Multimedia Technologies Limited (SAMT) invested Rs 50 crore in equity of South Asia FM Ltd and Rs 43.9 crore in preference shares of SAFL.
The million-dollar question is, do Maxis- Sun TV and Maxis-Sun FM deals qualify as quid pro quo on similar lines as the Rs 200 crore Balwa-Kalaignar deal? Both the deals materialised soon after the respective telecom companies were granted the UAS licences and with it the precious 2G spectrum. And in both the cases it's the companies owned by the extended Karunanidhi family that benefited.
In fact, while A Raja and his family had zero stake in Kalaignar TV, Dayanidhi Maran's brother Kalanidhi and his wife Kaveri owned 80 percent stake in Sun Direct TV. At first sight, as far as the suggestion of give-and-take is concerned, the dots connect clearer in the case of the Marans than they do in Raja's.
Unmistakably, the chain of events preceding the grant of licences to Aircel raises a stink about Maran's policies.
On 5 March 2004, when NDAwas in power and Arun Shourie was telecom minister, Dishnet Wireless Ltd (a sister concern of Aircel owned by the same parent group, Siva Ventures Ltd) applied for grant of UASL for eight areas including Madhya Pradesh. Until then Aircel had cellular operations in just two circles—Chennai and Tamil Nadu.
Just one month after the application, the DoT issued the letter of intent (LoI) for all the eight areas. But licences were signed for seven service areas, leaving out Madhya Pradesh. Aircel Ltd was the company holding the licence to operate in Tamil Nadu circle and was also the holding company of both Aircel Cellular Ltd, which held the licence for Chennai circle and Dishnet Wireless Ltd, which held the licence for the other circles. All three companies operated their telecom services under brand Aircel. Aircel Ltd was wholly owned by C Sivasankaran's Sterling Infotech Group (now known as Siva Group).
On 21 April 2004, Dishnet made applications for UASLs for UP (East) and UP (West).
Though for Madhya Pradesh, LOI had already been issued, on 5 May 2004, for the first time, the DoT raised queries about the aspects of funding and Dishnet's net worth. As a result, Dishnet's licence for Madhya Pradesh and its applications for other service areas were withheld.
On 26 May 2004, Maran took over as telecom minister.
In June 2004, Dishnet sent a detailed submission clarifying all the issues raised by the DoT.
On 8 July 2004, Secretary, DoT endorsed a proposal for issuing LoI for UP (East) and UP (West) service areas and also for extending time for signing licence for Madhya Pradesh. The proposal was then put up before Maran for his approval.
On 24 August 2004, the personal secretary to Maran put up a note that he had been directed to seek clarification as to financial and equity holdings between Dishnet and its sister concerns holding licence elsewhere, particularly in Tamil Nadu and Chennai; status of newspapers reports regarding sale of Dishnet or its sister concerns; verification whether Dishnet or its sister concerns had sold licences to another company and legal implications of allegation of company having violated certain licence conditions. Based on the same a notice was issued to Dishnet, who submitted a detailed clarification.
For the next four months, different sections within DoT raised various legal issues. Subsequently, the file was submitted to the Legal Adviser but was withdrawn on 17 December 2004.
On 1 March 2005, Dishnet applied for licences in four more circles — Haryana, Kerala, Kolkata and Punjab.
On 30 March 2005, a note was put up by Secretary, DoT that "As discussed with the minister (read Dayanidhi Maran) the files of the applicant were being returned with a direction that Director should ascertain all the show-cause notices or advisory letters issued to the applicant or its group companies."
The Sterling Group are intrigued by the attitude of the DoT and we, who have been dealing with the DoT for a whole decade and more, have never had this kind of frozen feeling. Unable to fathom why there is a complete lack of response from the DoT we brought the issues to your notice. We also followed up our first letter with a reminder to you on May 3, 2005. Yet there has been no progress in our matter, nor is any difference seen in the attitude of the DoT.
In this situation we cannot help to conclude that some powerful element in the Ministry/Government seems bent on stifling matters relating to the Sterling Infotech Group. This is our apprehension. We request you call for our records and examine them and satisfy yourself or have them examined by an impartial official so that the government gets proper advice on the issues relating to the group.
With equity interest of 74% in Aircel (comprised of 65% direct interest and 9% indirect interest) and 100% subscription of cumulative redeemable non-convertible preference shares in Deccan Digital Networks Private Limited ("Deccan"), the joint venture company incorporated in the Republic of India, this effectively gives the group 99.3% economic returns from the investment in Aircel.
You may kindly recall my meeting with you on 1 February 2006 when we had, inter alia, discussed the issue of the Group of Ministers relating to the vacation of spectrum by the Defence. You had kindly assured me that the Terms of Reference of the GoM would be drawn up exactly the way we wanted, which was to focus only on the issue of vacation of spectrum. I am, however, surprised to note that the GoM as constituted has much wider Terms of Reference, some of which I feel impinge upon the work normally to be carried out by the Ministry itself.
I shall be grateful if you could kindly instruct the concerned to modify the Terms of Reference as suggested by us, which are enclosed.
Dishnet's file moved around between different sections in DoT without any decision being taken. In the meantime, the FDI cap in the telecom sector was increased from 49 percent to 74 percent.
In October 2005, Malaysia-based Maxis Group approached Sivasankaran to acquire Aircel.
On 14 December 2005, DoT announced new UASL guidelines for grant of UAS licence stipulating that there would be no restriction on the number of entrants in any service area and no single company, either directly or through its associates shall have a substantial equity holding (10 percent or more) in more than one telecom company in the same service area.
On 30 December 2005, the acquisition agreement between Aircel and Maxis was signed. Dishnet's pending applications now acquired urgency in the ministry.
In a letter dated 2 January 2006, Dishnet was asked to furnish information as per the new guidelines, which it did in 17 days.
On 12 January 2006, Aircel applied for UAS licenses in four new circles — Karnataka, Rajasthan, Mumbai and Maharashtra.
On February 2006, the start-up spectrum for Bihar, which was pending since May 2004, was allotted to Dishnet (subsidiary of Aircel).
On 3 March 2006, Aircel applied for three more telecom circles — Delhi, Andhra Pradesh and Gujarat.
On 13 March 2006, the spectrum for Himachal Pradesh was allotted. This too was pending since Maran's takeover as telecom minister.
In March 2006, T Ananda Krishnan informed shareholders that the company has completed the deal to buy 74 percent equity in Aircel from Sivasankaran's Sterling Infotech Group.
On 19 April 2006, a senior DoT official put ups a note enquiring about the status of the showcause notices, as he says the same has to be submitted to the minister.
On 22 May 2006, Dishnet submitted a revised equity structure, FIPB approval, etc.
It was only after March 2006, when Malaysian business tycoon T Ananda Krishnan bought a 74 percent stake in Aircel, that its file gained momentum
On 1 November 2006, the grant of issuance of Letter of Intents for 14 circles including Madhya Pradesh was approved. Within a fortnight, all the 14 licences are issued. Aircel paid Rs 1,399.47 crore for these 14 licences and from a small regional player it became a pan-India operator.
Justice Shivraj Patil in his report has come down hard on Maran's delaying tactics. He has observed: "The clarifications sought (in the case of Dishnet on different occasions) besides being vague, were also irrelevant for consideration of application for grant of UASLs." Justice Patil has also remarked that on several occasions Maran deviated from the laid down procedures. He said, "Ascertaining of showcause notices/advisory letters was again not warranted in terms of the laid down procedure."
Was Sivasankaran Arm-twisted into selling Aircel to malaysia-based Maxis group?
So was C Sivasankaran, the chairman of Siva Group (erstwhile known as Sterling Infotech Group), a $3 billion conglomerate with interests in realty, telecom, shipping, energy and software, harassed by Maran? Was he pressurised into selling his telecom company, Aircel Ltd, to Malaysian billionaire Ananda Krishnan? Sivasankaran got $800 million for selling his company to Maxis. At the time of the sale, Aircel was operating in only nine circles while its applications for seven circles were lying in limbo. Also, it is reliably known that Aircel wanted to apply for more circles but didn't do so simply because their old applications were still lying in abeyance. If Aircel was sold after these licences were granted, the company's net worth would have increased and thus Sivasankaran could have got more money from the sale. Today, Aircel is a pan- India operator, thanks to the 14 licences given by Maran, and is valued in the range of $7.5-$8 billion.
On 1 June 2005, while Maran was in the saddle, Sivasankaran wrote him a letter alleging that his applications for new licences were being sabotaged by "some powerful element in the ministry". Though he refrained from putting the blame on Maran, he wrote: "The Sterling Group are intrigued by the attitude of the DoT and we, who have been dealing with the DoT for a whole decade and more, have never had this kind of frozen feeling. Unable to fathom why there is a complete lack of response from the DoTwe brought the issues to your notice…. Yet there has been no progress in our matter, nor is there any difference seen in the attitude of the DoT."
The letter further read: "In this situation we cannot help to conclude that some powerful element in the Ministry/Government seems bent on stifling matters relating to the Sterling Infotech Group."
While Maran was minister, DoT not only delayed the issuance of new licences to Aircel, it also delayed the allotment of spectrum for the licences that had already been issued before Maran became the minister. Justice Patil's report has called this delay as unjustified.
Dishnet was awarded licenses for Bihar and Himachal Pradesh circles (besides five more circles) in March 2004 (during the NDA regime). But it was not allocated the start-up spectrum, which comes with the licence, in Bihar till February 2006 and in Himachal Pradesh till March 2006. Justice Patil in his report has laid out Maran's delaying tactics in detail.
In his report, Justice Patil says: "On 09.06.2005 a proposal for earmarking 4.4. + 4.4 MHz for Dishnet in Bihar circle was put up for approval within DoT. However, on 14.06.2005 Member (Technical), DoT desired to know if the case was approved by the minister."
Maximum moolah Malaysian tycoon Ananda Krishnan is said to be the moneybags behind the deals
This note goes on to state that despite the spectrum being available for allocation to Dishnet in Bihar, the DoT bureaucrats did not clear the allocation because there was no go-ahead from Maran.
The report says: "Wireless Adviser (who works within DoT) put up a note on 16.06.2005 directing that the approval had to be decided at the level of Special Secretary… the case again having been put up for approval Secretary, DoT on 26.07.2005 desired to know the stage of network planning and identification of sites for main switching centres. Subsequently, several notes were put up for verification of the said aspects and it was only on 4.02.2006 that allotment of initial spectrum was approved." There was no justification for delay in approval of allotment of initial spectrum despite availability, Justice Patil concluded.
SOMETHING AS small as the request for name change made by Sivasankaran was also not cleared by Maran. On 4 April 2005 Sivasankaran wrote to Maran: "Consequent to change in the name of the company from Dishnet DSL Ltd to Dishnet Wireless Ltd, we have made a request for effecting the change of the name of the company in UAS licence. This is pending for the last eight months. Such a request is normally cleared at the lowest levels in the administration and instantly."
In the same letter, Sivasankaran further wrote: "I am bringing these unusual occurrences to the Hon'ble Minister's notice only to show how there appears to be some unspoken convergence in the delays and denials."
However, Sivasankaran's repeated pleas made no difference to his prospects as far as DoT's approvals were concerned. In October 2005, he received an 'unsolicited offer' from Malaysia-based Maxis Communications to acquire Aircel. Since the cap on FDI in telecom sector was 74 percent, the remaining 26 percent was picked up by Reddys of Apollo Hospital. On 30 December 2005, Maxis and Aircel signed the agreement.
So was Sivasankaran arm-twisted into selling his company to Maxis Group? So far, Sivasankaran has not levelled any allegation against Maran. In fact, after selling off Aircel, Siva Group formed another telecom company named S-Tel, which was granted licences for six circles by A Raja in 2008. S-Tel is now being investigated by the CBI for suspected illegal gains.
When contacted by TEHELKA, Sivasankaran refused to comment on these issues.
Maxis buys out Aircel; the Company's fortunes do a Turn-around
In March 2006, Maxis invested an aggregate amount of Rs 7,880.82 crore in Aircel. While Maxis picked up the 65 percent direct equity through its 100 percent subsidiary Global Communication Services Holdings Ltd, it picked up 9 percent equity through another company named Deccan Digital Private Ltd in which Maxis owned 26 percent equity. As per the FDI norms in telecom sector, a foreign company can hold a maximum of 74 percent equity in a telecom company. The amount invested by Maxis through direct equity was Rs 3,390.82 crore ( Rs 3,379 crore + Rs 11.82 crore). However, Maxis invested another Rs 4,490 crore in Aircel by the way of preference shares. The total investment thus amounted to Rs 7,880.82 crore. The remaining 26 percent equity in Aircel was picked up by the Reddy family of Apollo Hospital fame (See the chart on Maxis Investment in Aircel).
The question that arises is that whether such a massive investment done by Maxis in Aircel ( Rs 4,490 crore in preference shares and Rs 3,390.82 crore in equity) gave it virtually full control over the telecom company and was thus a violation of the FDI rules? Compared to Maxis' Rs 7,880.82 crore of investment, the Reddys merely invested 34.17 crore for their 26 percent indirect equity in Aircel. Reddys invested Rs 34.17 crores for their 74 percent equity in Deccan Digital Pvt Ltd, which in turn held 35 percent equity in Aircel. Deccan Digital picked up the 35 percent equity in Aircel for Rs 1,685 crore, out of which Rs 1,644 crore was financed by Maxis through preference share route (See the chart on Maxis Group Holding Structure in Aircel).
In a filing to the Malaysian stock exchange, Bursa Malaysia in March 2006, which was soon after the Maxis-Aircel deal was completed, Maxis made a selfdeclaration of having control of 99.3 percent over the economic returns from their investment in Aircel. Maxis stated: "With equity interest of 74 percent in Aircel (comprising 65 percent direct interest and 9 percent indirect interest) and 100 percent subscription of cumulative redeemable non-convertible preference shares in Deccan Digital, this effectively gives the group 99.3 percent economic returns from the investment in Aircel."
So have Maxis and their Indian partner, the Reddys of Apollo Hospital, violated FDI guidelines? What was the criterion on which Maxis picked up Reddys as their Indian partner? Certainly financial strength and potential investment that Reddys would bring to Aircel was not a criterion, given the fact that the latter merely invested Rs 34.17 crore in a holding company of Aircel. Were Reddys just a frontman for somebody powerful who could not have directly come into the fray? (Dayanidhi Maran's father Murasoli Maran underwent prolonged treatment at Apollo Hospital in Chennai in 2003. It is widely believed that Reddys took good care of Murasoli during his hospitalisation and ever since the Maran family and Reddys have become good friends.)
These are the questions for which the CBI is trying to find answers. Pursuant to Supreme Court's order dated 8 December 2010 instructing the CBI to widen its ongoing 2G probe beyond Raja and include all the licences and spectrum allotments done since 2001, the CBI had registered a Preliminary Inquiry against unknown persons to look into possible criminal aspects in the telecom policy since 2001. According to sources, the inquiry is now close to completion and the CBI will soon decide whether they have enough evidence to register another FIR in the ongoing 2G probe against new players.
In a written statement emailed to TEHELKA, Suneeta Reddy, Director of Apollo Hospitals has stated: "We inform that the Apollo Hospitals and Dr Prathap C Reddy do not have any investments in the telecom sector. We further state that the Sindya Securities and Investments Pvt Ltd promoted by Mr P Dwarakanath Reddy and Mrs Suneeta Reddy have investments in Aircel Entity and this is a strategic investment in telecom sector, which was a growing business opportunity… We therefore state that the investments of Sindya Securities and Investments Pvt Ltd in Aircel Ltd have been in compliance with applicable laws of India and all regulatory consents/approvals, wherever required, have been sought and duly granted by the relevant authorities." Both Dayanadhi and Kalanidhi Maran did not respond to the detailed questionnaires sent by TEHELKA.
Maxis picks up a substantial equity in Maran family-owned Sun Direct TV and Sun radio
As detailed above, after Maxis' takeover of Aircel, not only applications for seven circles that were pending for more than two years were cleared, Aircel's applications for seven new telecom circles that were made after the acquisition were also swiftly given the go-ahead. Aircel paid a total of Rs 1,399 crore for these 14 licenses. As per the CAG's valuation of 2G licences, these 14 licences could have fetched the government over Rs 22,000 crore, if they had been auctioned in a competitive bid.
In March 2007, which was three months after the award of licences, a Maxis Group company, Astro All Asia Networks through its wholly owned subsidiary South Asia Entertainment Holdings Ltd, announced a joint venture with Sun Direct TV to provide DTH services in India.
On 2 March and 19 March 2007, Foreign Investment Promotion Board and Ministry of Information and Broadcasting gave Astro the required approvals to acquire 20 percent interest in Sun Direct.
On 10 December 2007, Astro completed the subscriptions of 39,677,420 new shares in Sun Direct for a total cash consideration of Rs 315.71 crore. Following the completion of the subscription, Astro had a shareholding interest of 20 percent in Sun Direct.
During the period February 2008-January 2009, Astro subscribed for a further 29,319,882 new shares in Sun Direct for a total cash consideration of Rs 233.3 crore. The new shares were subscribed proportionately with the Maran family's shareholding in Sun Direct, so Astro's shareholding remained at 20 percnet equity interest in Sun Direct as before.
On 5 December 2009, Astro subscribed for 6,283,775 additional shares of Rs 10 each in Sun Direct at a total cash consideration of Rs 50 crore at a subscription price of Rs 79.57 per subscription share. Subsequent to the above subscription, the holding of Astro in Sun Direct stood at 20 percent.
On 28 February 2008, a Maxis Group company Astro through its wholly owned subsidiary South Asia Multimedia Technologies Ltd acquired 6.98 percent equity interest in South Asia FM Ltd (SAFL), a FM company owned by the Maran Group, which had licences to own and operate 23 FM radio stations in India, for a total cash consideration of Rs 14.92 crore.
In July 2009, changes to the foreign direct investment (FDI) regulations in the radio industry allowed Astro to increase its direct stake in SAFL to 20 percent in July 2009 in the following manner:
Subscription of 1,922,854 new SAFL equity shares at par at a total subscription price of Rs 19.23 crore on 22 June 2009;
Subscription of 19,389,198 new SAFL equity shares at par at a total subscription price of Rs 19.39 crore on 23 July 2009;
Acquisition of 13,836,296 existing SAFL equity shares from AH Multisoft Private Ltd at par at a total purchase price of Rs 13.84 crore on 23 July 2009; and
Subscription of 43,900, 136 Compulsorily Convertible Preference Shares (CCPS) of Rs 10 each in SAFL at a subscription price of Rs 43.90 crore on 3 August 2009. Denying the allegations of suspected payoffs, Maxis Communication Berhad in a press release issued on 24 May, stated that there was no pressure exerted on Siva Group to sell its stake in Aircel. The company also asserted that there was no linkage between Maxis' investment in Aircel and that of Astro's in vestment in Sun Direct TV.
What the CBI is probing in The Maxis-Sun Direct deal?
The CBI has charged Raja for fraudulent implementation of the first-come-firstserve policy of granting licences. The CBI has not faulted Raja for not opting for the auction route, but he has been charged for not revising the 2001 entry fee for different telecom circles keeping in mind the exponential growth in the telecom sector.
According to the CBI, Raja made arbitrary and fraudulent decisions to favour companies like Swan and Unitech and gave them the licences at the 2001 rate and despite several ineligibilities in their applications. And for doing so he and Kannimozhi were allegedly paid a graft of Rs 200 crore disguised as equity investment into DMK-run Kalaignar TV (while many suspected overseas payoffs are also under investigation, so far the CBI has brought only Rs 200 crore Kalaignar deal on record).
The question that arises is whether Maran was also guilty of a fraudulent implementation of first-come-first-serve policy in his alleged bid to favour Aircel, post Maxis buy-out? Or were his dealings with Aircel completely overboard and the apparent give-and-take between Marans and Maxis Group a mere co-incidence?
The CBI in its supplementary chargesheet against Kanimozhi and others have listed as many as 14 reasons to buttress their claim that the Rs 200 crore equity investment/ loan in Kalaignar TV was not a genuine business transaction. The main reasons listed being, I) there was no original shares subscription and shareholder agreement between Cineyug Films Pvt Ltd (Balwa had transferred the money to his subsidiary company Kusegaon Fruits and Vegetable which in turn passed it onto Cineyug and from there it came to Kalaignar TV, II) while Kalaignar and Cineyug claimed that the money was transferred for picking up a 20 percent equity in Kalaignar TV, Kalaignar TV's balance sheet for year ending 2009 showed a part of this money, Rs 25 crore under head 'Sundry Creditors and others', III) in the balance sheet for year ending 2010, Kalaignar TV, the amount of Rs 25 crore was regrouped as unsecured loan, IV) finally the entire amount was not converted into equity but instead shown as loan and was returned, V) the money was returned only after A Raja was asked to join the investigation at CBI headquarters in December 2010.
Arm-twisted Chairman of the Sterling Group C Sivasankaran, who was forced to sell Aircel
Will the Maxis-Sun Direct TV and Maxis- Sun Radio equity deals pass the CBI's litmus tests or will the agency be able to find enough illegalities to prove that these deals were also quid pro quo, along the lines of Balwa-Cineyug-Kalaignar deal?
While the CBI is holding its cards close to its chest, Justice Patil in his report submitted to Telecom Minister Kapil Sibal on 31 January this year, has found Maran lacking on many counts.
Besides the unjustified and unwarranted delay in dealing with Dishnet-Aircel's applications, the report enumerates a few more instances of Maran's ad hocism and arbitrariness.
The report says that Idea Cellular was given an extension of one year to rectify the discrepancies in its UASL application (Idea had applied for UASL for Mumbai service area on 3 August 2005). The extension was given without the approval of Member (Finance).
The existing guidelines stipulated that the time for rectifying discrepancies in application could be extended by maximum 30 days and that too with the approval of Member (Finance). But Idea Cellular was given an extension in a clear 'deviation from laid down procedure', according to Justice Patil, and was finally issued an LoI on 20 November 2006.
On 14 December 2004, Essar Spacetel Pvt Ltd made applications for grant of UASLs for Assam, Bihar, Himachal Pradesh, Jammu & Kashmir, Northeast, Odisha and Madhya Pradesh. On 12 January 2005, DoT wrote to Essar Spacetel pointing out deficiencies in its equity structure. The correspondence continued till 18 May 2006. "The information was sought and discrepancies were pointed out in a piecemeal manner," noted Justice Patil in his report, hinting at Maran's dubious policies. Letter of Intent was finally issued to Essar on 20 November 2006 for all service areas except Madhya Pradesh. For Madhya Pradesh, LOI was issued on 5 March 2007.
How Maran kept spectrum pricing out of the Finance Ministry's purview?
Apart from listing the unjustified delay in dealing with Dishnet-Aircel applications and ad hocim shown by Maran in various other licensing related decisions, Justice Patil has also recorded in detail as how Maran kept the critical issue of spectrum pricing out of the Finance Ministry's purview.
On 23 February 2006, with the approval of Prime Minister Manmohan Singh, a Group of Ministers (GoM) comprising the Minister for Defence, Minister for Home Affairs, Minister for Finance, Minister for Parliamentary Affairs and Telecom Minister was constituted to look into various issues concerning effective and optimum usage of spectrum. The terms of reference also included suggesting a spectrum pricing policy.
If the CAG valuation of 2G licences is any yardstick, the value of Aircel's licences cleared by Maran would amount to Rs 22,000 crore. But it paid just Rs 1,400 crore
But on 28 February 2006, Maran wrote a letter to Manmohan Singh and asked spectrum pricing to be kept out of GoM's purview. He wrote: "You may recall my meeting with you on 1st February 2006 when we had inter-alia discussed the issue of the Group of Ministers relating to the vacation of spectrum by Defence. You had kindly assured me that the Terms of Reference of the GoM would be drawn up exactly the way we wanted, which was to focus only on the issue of vacation of spectrum. I am however surprised to note that the GoM as constituted has much wider Terms of Reference some of which I feel impinge upon the work normally to be carried out by the ministry itself. I shall be grateful if you could kindly instruct the concerned to modify the Terms of References suggested by us which are enclosed."
The PM obliged and the term related to spectrum pricing was deleted in the revised Terms of Reference issued on 7 December 2006. But six months later, on 6 June 2007 (Maran was replaced by Raja on 13 May 2007), the Ministry of Finance sought inclusion of spectrum pricing in the Terms of Reference of GoM. But Secretary, DoT, declined any modification. Thus the precedent set by Maran was continued by Raja. All decisions related to UASL and spectrum pricing were taken by DoT without the concurrence of Finance Ministry that was required under Government of India (Transaction of Business) rules.
Also both the ministers kept the issue of spectrum pricing out of Cabinet and Group of Ministers' purview. Shockingly, nobody in the government including the PMO raised a flag.
Maran's three-year-old stay at Sanchar Bhawan was marred by a spate of controversies. He shared an extremely strained relationship with Ratan Tata, chairman of Tata Sons. It was widely speculated that Maran brothers wanted to buy a substantial take in Tata Sky but when Tata spurned them, the DOT started putting roadblocks in Tata Teleservices' expansion plans. The Niira Radia-Ratan Tata tapes which got their way in the media in mid 2010, confirmed Tata's deep-seated dislike towards Maran and his preference for Raja over Maran as telecom minister.
In his report, Justice (retd) Shivraj Patil came down hard on Maran's delaying tactics. He has also remarked that on several occasions, Maran deviated from procedures
"The only concern I have is that Maran is going hammer and tongs for Raja. And I hope Raja doesn't trip or slip," Ratan was famously heard telling Radia in a phone conversation which happened on 7 July 2009 and which later got leaked in the media.
In February this year, former Telecom Minister Arun Shourie made further dent in Maran's reputation by blaming him for the genesis of 2G scam.
"It was in Maran's time that one sentence was put into the guidelines that there shall be no cap on the number of operators in a circle. Such a change could only come in the form of a Telecom Regulatory Authority of India (TRAI) recommendation," said Shourie.
"This (change) comes in the guidelines of 2005 whereas the TRAI did not recommend it till 2007. So by what horoscope did Mr Maran anticipate these recommendations — two years ahead? That is how some operations were planned that could not go through and then Mr Raja acted on them."
So, did Maran really lay the foundation of the 2G scam? Was the Aircel-Maxis-Sun Direct TV deal the prototype of payoffs that Raja later followed on a much larger scale? The answer lies in hard evidence and this is where the CBI will be tested.
