The slow poison of Coal, mined out by Subhash Chandra’s Zee, set to dig up new Pits for Naveen Jindal’s Steel and Power Empire.

Over 2 ½ years back, a leaked draft report of CAG shook the nation with screaming headlines depicting a Rs 10 lakh crore notional loss to the nation due to coal block allocations. A few months later the notional loss drastically shrunk to Rs. 1.76 lakh crore, yet remained ballistic enough to shake many business empire deep down to their roots. An example of a business empire that stands shaken up from its core is the carefully curated business model rightfully patented to Naveen Jindal, if he had applied for one.

It was the remarkable long-term foresight of Naveen Jindal to integrate backwards going to the unexplored terrains to dig out coal from far-flung locales, making JSPL the most profitable Steel and Power major. The core strength of JSPL today stands under a big question mark with the government indicating its willingness to impose an additional Rs. 259 per tonne levy on coal miners excavating coal for their steel and power units. A move on these lines will in effect drive the costs of JSPL’s raw material consumption to levels that make captive mining nearly uneconomical unless there is a direct rise in the sale price of their steel and electricity.

Secondly, government has clearly indicated its willingness to Auction the coal mines after they are cancelled by the SC. An auction in effect may create a spectrum like scenario ending up making the consumers bear the brunt of corporate and political rivals settling scores amongst themselves. Third yet equally important point is the tight control government is set to get on the future coal block allocations courtesy directions of the Supreme Court.

Subhash Chandra’s Zee News is having a ball by propagating miseries of Naveen Jindal’s business empire after the coal controversies. More pits are said to be under digging up process, as the CBI is rumored to be filing the Chargesheet in JSPL case in the run up to Haryana elections, as Naveen Jindal grapples between a SC Judgment and forthcoming assembly polls, leaving the field wide open for Subhash Chandra’s army to punch holes in.

Probability of a Truce between Subhash Chandra and Naveen Jindal getting eliminate fast; though the end still remains far..

The once bright looking chances of a truce between Subhash Chandra and Naveen Jindal to end the 2 year long rivalry are getting eliminated faster than the rumors they emanated over a month ago. Reliable sources claim that inspite of an unconditional treaty being offered from interlocutors representing the Jindal Camp, Subhash Chandra is all set to respond by announcing to contest Assembly elections against sitting MLA Savitri Jindal from Hissar. Before bringing the face-off to this stage, Subhash Chandra has ensured that the doors of BJP remain shut for the Congressman Naveen Jindal, if Chandra manages to show his magic at Hissar.

Moving one step further, Subhash Chandra may be eyeing the topmost slot of BJP in Haryana as the State remains bereft of a Haryanvi Leader from the saffron party. Once upon a time it was rumored that Naveen Jindal too nursed the same ambition of becoming the Chief Minister of Haryana, a dream which may elude him for atleast the next 5 years unless the winds of change show some magic in the next 6 weeks.

After slamming Subhash Chandra hard in late 2012 where it hurts the most, Naveen Jindal has remained on the receiving end from the veteran Hissarite. Independent watchers claim a contrasting difference between the two men from Hissar. Chandra is said to be a man who takes his own decisions and has stood firm on his grounds that the only thing that can end this war is a clinching victory for him to restore his pride built over 44 years.

On the contrary, the 44-year-old Jindal is said to be a man who has been surrounded by advisors who time and again show him the beating JSPL has taken from a meticulous plan executed under directions of Subhash. While Subhash keeps his artillery and infantry on guard all the time, Jindal is rumored to be oscillating between his deep desire to hit back with equal force, and the pressure on him from his close quarters to show the white flag.

Chandra on one hand remains silent and keeps marching forward on his planned attack, Jindal in hope of a truce keeps juggling between offense and defence, often ending up confusing himself. The deep impact of attack by Subhash is planned meticulously a year, few months and quarters in advance; on the other hand Jindal camp wants a Maggi Noodles kind of result in 2-minutes flat.

The series of battles which have seen no end till date, are all set to get more intense, unless Naveen Jindal – strangulated by his advisors to patch up – comes out to play his natural game. As the whole army of Subhash Chandra put together is no match for the Man of Steel, when he wholeheartedly decides to take the fight to the enemies camp, sheerly based on his own caliber; to which veteran Subhash Chandra is no match.

Ruler of India’s News Winds Subhash Chandra to test Nerves of Man of Steel Naveen Jindal as Battle of Kurukshetra moves to Hissar

The Battle of Kurukshetra, fought between staunch rivals, is all set to shift to a new ground, as assembly elections of Haryana are scheduled to be announced anytime now. The bitter rivalry between Steel Czar Naveen Jindal and Media Baron Subhash Chandra will witness the biggest test of the past two years as both prepare to take on each other in their hometown Hissar. A town which is historically known for fiefdoms of recognized warriors for the first time will witness a commercial rivalry gone political after Chandragupta Maurya’s legendary battle with Greeks and later regaining its prominence under Firoz Shah Tuglaq.

With all the makings of a popular Bollywood flick, while Naveen Jindal may say, “Mere Pass Maa Hai”, Subhash Chandra is all set to announce his political foray by a fitting reply, “Mere Saath Modi Hai”. The media baron is all set to ride the Pro-Modi, Pro-BJP wave to be elected as the representative of people of Hissar before he turns 64 years of age on 30th November this year. Challenging the legend of the legendary Steel baron Late O.P. Jindal and his family, Subhash Chandra would be taking on the fight to be elected as MLA from Hissar with none other than Savitri Jindal, the matriarch of Jindal family and the richest Indian woman.

Naveen Jindal on the other hand has been given a major role by the Congress in the forthcoming Haryana Assembly elections by appointing him as the Chairperson of the Publicity Committee. A task that would be highly intricate to handle for the 44 year old super human Naveen Jindal, whose recent loss in the Parliamentary elections has been claimed as an emphatic victory by Subhash Chandra. As reported by the blogger on 26 August, Subhash Chandra was likely to get a major back room strategist role for BJP’s foray in Haryana, and possibly a MLA ticket of his choice. The media baron is said to have finally decided to wear a saffron kurta and a formal announcement is likely to be made by BJP by end of this week, or in the week beginning 22nd September.

The staunch rivalry which came out in the open in October 2012 is all set to take political color with Jindal being one of the prominent faces of Congress and Chandra for BJP from their home state and home town. A face to face battle in the Haryana polls between Naveen Jindal’s mother Savitri Devi Jindal and Subhash Chandra would be interesting to watch for reasons more than many.

First Time Ever a Corporate website Home Page dedicated to a Bail Order. As it was first time ever that Jignesh Shah promoted Exchange was found to be a Scamming Platform

Interestingly, the Financial Technologies website has a new look Home Page soon after Jignesh Shah walked out of jail in flip flops with unkempt hair holding a paper carry-bag with his belongings.. 

The home page adorns the Bail Order which allowed Jignesh Shah to walk free. The Prominent display of Videos contains interviews of Jignesh Shah’s advocate given to leading news channels. All of them essentially a monologue which FT wants to be promoted. 

The other prominent highlight of the website is a scroll carrying brief synopsis of Observations of the Bombay High Court, convenient for FT and Jignesh Shah. 

To add more life to the home page, the company promoted by Jignesh Shah now under the CBI Scanner has put 3 quotes. One from Lawyer Mahesh Jethmalani. The second from former FMC Chairman and now FT Chairman Venkat Chary. And the third from Co-Founder Dewang Neralla. Apart from the quote of Dewang Neralla which doesnt mention the name of Jignesh Shah, the rest address the NSEL Scam accused with great respect by adding “Shri” to the name of the man who spent a good 108 days in custody. 

What a novel way to welcome the erstwhile poster boy of Indian Commodity Exchanges by dedicating the website’s home page in honor of their founder promoter. And a remarkable tribute to the vision of Jignesh Shah by Venkat Chary who too after becoming a FT employee address him with great respect with a “Shri” added. 

For a quick laugh, visiting http://www.ftindia.com is a must today… 

Zee Orissa Channel thrives on negative stories on Naveen Jindal as a Competitor plays Dirty Tricks on JSPL.

The Zee Group’s pursuit to paint Naveen Jindal as a villain continues silently and safely in the far-flung geographies of Orissa, after a successful concerted campaign against the former Congress MP during the Lok Sabha Elections. Subhash Chandra’s recently launched Zee Kalinga is thriving painting a negative face of Naveen Jindal on the airwaves of Orissa for a few weeks now.

Without delving into the merits, basis and content of the negative stories on Jindal Steel and Power in Orissa, the blogger has received details on a string of stories aired by the Subhash Chandra news channel whose objective is to sully Jindal’s name for their owner Chandra to regain his past glory which suffered a serious setback on alleged extortion case filed by Naveen Jindal.

The two-pronged damage intended to be caused to Naveen Jindal covers his public face as a once-extremely popular politician and a successful industrialist. Two fatal attacks have already given Subhash Chandra the high of revenge, without serving it cold. On one hand a series on a Iron Ore Mine deal with the original allottee by a Chattisgarh Unit of JSPL is understood to have caused significant damage to the business margins of the produce from Raigarh which has started reflecting in the balance sheet of the company. On the other hand, the march of a sure-shot winner to Lok Sabha inspite of an anti-congress wave claims to have been curtailed by Zee Camp.

The next on block is the State where Naveen Jindal has the biggest financial exposure and presumably is the biggest investor till date. The debt pile accumulated by Jindal’s Steel firm has been spent in setting up a unit in an unknown town of Angul, Orissa. And that’s precisely the area that has all the focus of Subhash Chandra’s think tank responsible for redeeming his under-question pride.

Interestingly, it is understood that the “lacuna” left by Jindal Steel are being nit picked by a competitor and being served on a platter to Zee Kalinga to keep the heat off from themselves. The merits of the stories are not known or even looked into by the blogger and may well be fact-based. But what is emerging is the strategically planned step-by-step attack on Jindal’s Steely resolve chalked out and annealed over 2 years with patience, grit and determination. Whether Jindal has similar plans or capabilities to hit back step-by-step with equal patience, grit and determination will only be clear after months, as a anti-Jindal like exercise needs careful curating and a dedicated curator to work on it equally patiently.

Coal Tales return to haunt Coal Block Allottees as Zee News has a field day showing Subhash Chandra’s bête noire Naveen Jindal led JSPL losing 19% Value in 2 days..

It was a field day of sorts for staffers of Subhash Chandra owned Zee News as they kept slamming and banging an overdoze of SC judgment on Coal Block Allocations with reckless appetite. On top of the Zee Charts was none other than the suave Congressman Naveen Jindal, who was recently appointed as Chairman of Publicity for the forthcoming Haryana Assembly Elections. Ten days ago, Viewology first reported the simmering talks of a possible patch up between the two country cousins from Hissar and later the emphatic “over my dead body” kind of response of the elder Hissarite. With Zee latching on to the golden chance of bruising Naveen Jindal’s image, they left no stone unturned over the past 36 odd hours in their attempt to paint Naveen Jindal’s face as synonymous to Coalgate.

Incidentally, the last two days have resulted in a massive erosion of valuation of Jindal Steel and Power, which fell from Rs 296 levels on Friday evening to Rs. 248 levels on Monday evening, further slipping to Rs. 237 levels at Tuesdays close. The bloodbath may still not have ended as another major diktat is expected to come from the 3-member SC bench on next Monday, September 1st. A Judgment that may end up reviving the market sentiments by levying penalties to willfully offending companies, leaving out JSPL which is one of the few serious contenders for the coal blocks on business merits like a Tata or a Birla.

A close look at the CAG report on Coal Block Allocations does reflect certain points which if read with the SC Judgment depict that arbitrariness or procedural flaws if any, have nothing to do with a Naveen Jindal, Kumar Birla, Anil Ambani or a Cyrus Mistry. The coal blocks allocated since 1993 have been termed illegal. That time, Naveen Jindal and Cyrus Mistry may not have been in active business also. Kumar Birla and Anil Ambani would have been new entrants to their business empires and may not even have known about the potential of coal blocks. By no means can a Jindal, Birla or Mistry be termed as opportunists who squatted on precious coal blocks. Here again, Naveen Jindal appears to be singled out for reasons that may be right, as his companies indeed were the biggest Allottees of coal mines under the now impunged policy under which all “potential, prospective and actual Allottees” operated for 17 years.

On one hand there may be certain question marks on basic eligibility criteria being followed or flouted by a few companies, the other aspect which needs to be closely scrutinized is whether the Allottees were “opportunistic traders of coal blocks” or serious long term players for whom coal is a critical raw material. Naveen Jindal did see Coal as a critical raw material and secured his future coal needs by bagging the coal blocks. So did a Tata, Birla or Essar. The Other important aspect which will finally get cleared with the CBI investigation is whether a Jindal company has paid a miniscule “bribe” of Rs. 2.5 crore odd to the Minister of Coal through the banking channels. Even if Jindal – Rao transactions can be construed as a bribe by CBI, the 2G Spectrum Scam trial has shown that similar allegations are not easy to prove in the court of law. Jindal perhaps doesn’t even need to give an explanation in this case and merely say that if they were to pay Rs 2 odd crore bribe, they would have preferred the cash route rather than leaving evidence of this pitiable amount.

The irony of being a Naveen Jindal is that the flak you get in the media is directly proportional to the bouquets and praises one gets in good times. Now it is completely in hands of Naveen Jindal to somehow go out an prove that (i) The CAG report was too erroneous to be considered at face value and (ii) The SC Judgment doesn’t factor the valid point that a policy guideline and framework that was running smooth for a good 17 years cannot become arbitrary overnight. If the governments, politicians and bureaucrats had no will to revisit the policy with the changing times, no single industrialist can be painted as the villain for a policy which came in force when he was merely 23 years of age, and not in full time business too. It is obvious that a 23-year-old Naveen Jindal could not have conspired with the decision-makers of the 1993 government in anticipation of taking advantage of the policy 12 years down the line. For those critics who still suspect a Jindal hand in 1993 decision should give due credit to the far-sightedness and prudence of a 23 year old young man to wait for a good 12 years for taking advantage of the “now-arbitrary” policy.

Once the heat of the CBI Investigations cools down by end of this year, and the cases go to the trial stage by early next year, it would be a cakewalk for corporate lawyers to bring out some valid points that have gone unnoticed. An effort which could well have been avoided if some of these major coal block Allottees took the CAG Report seriously last year and had aptly handled the negative repercussions without showing their over-confidence, arrogance, high-headedness and by deploying capable managers to spin the seam to their advantage. Naveen Jindal does have a couple of more things to grapple than other coal block allottees. The much-laughed about alleged Jinx of MD Ravi Uppal whose entry has seen JSPL’s debt pile doubling and valuation of a star performer shrinking to half after his entry; which also corresponds with the unbridgeable hostility with a powerful media baron Subhash Chandra who is all set to take on the Chairman of Congress Publicity Committee of Haryana in the weeks to come.

Without Sultan of Brunei doling out a 45% premium on Grosvenor House, how will Subrata Roy Get a Rs. 5000 crore Sahara for Bank Guarantee ??

Sultan of Brunei made news for all the undesired reasons when reports of him buying the three icons Subrata Roy is negotiating for from inside Tihar Jail appeared in the media. A spokesperson for Sultan of Brunei was quick to issue a categorical denial, which was a surprise knowing the Sultanate doesn’t bother much responding to similar rumors.

Sultan of Brunei is amongst the few richest investors in the world with appetite to put in big money to shop iconic antiques like Grosvenor House. At the same time, an astute businessman who instead of doling out 45% odd premiums is a tough negotiator. Fully knowing he was the only interested bidder with instant cash in the bank, Sultan of Brunei should have negotiated to the last penny, at best paying a 4-5 % premium on the estimated value.

Did he indeed bid at all, or the $2 Bn bid from him for not only a rumor but an intentional plant?

As Jignesh Shah gets Bail, Harshad Mehta and Ketan Parekh deserve to be felicitated.. Subrata Roy released immediately and Nirmal Singh Bhangoo of Pearls be given Bharat Ratna…

The grant of bail to Jignesh Shah in NSEL Scam has come as a shock.. A shock, moreso when the order has been penned by none other than Justice Abhay Thipsay, that too after going through the Chargesheet filed by EOW. As Justice Thipsay granted bail to Jignesh, he did touch upon a few points that delved into the merits of the investigation and case. And the points noted by him are none less than partial, incidentally favoring Jignesh Shah in the long legal battle to come.

At the Bail Stage, it is not essential to comment on the merits of the investigation and question the delay in arresting Shah and solely looking at Anjani Sinha’s confession which he had later withdrawn. If the bail order has reflections of Anjani’s confession, then it ought to see all the other revelations Anjani made against Jignesh Shah and other officials. The judgment is completely silent on those aspects.

Moreso, the observation that Investors knew about the non-existent commodities is also an assumption that is too specific to be generalized on all the 13000 investors. Maybe a few large ones would have known, and so would be the brokers. But if the small investors would have known about fictitious trades, a lions share of them would have withdrawn their money to invest in safer and lower return instruments. No investor wants their money to be subjected to risks of the highest level.

Another aspect of the judgment under cloud points that the money was given to borrowers. Yes, it was, but ultimately it was Jignesh and his team who were responsible to ensure that the borrowers are genuine. And none of the 2 dozen odd borrowers turned out to be genuine. This itself shows that if Jignesh was not aware, he is a fool of the highest degree and such fools do need to spend a few years in jail for being callous with investors funds.

The Judgment paves a clear way for the EOW to immediately arrest a few brokers. An action that has been long delayed. And further delays would complicate the matters further.

In short, with the highest regard to Justice Thipsay, the judgment calls to be challenged in the Supreme Court and EOW should not waste any time to do so. Else Jignesh Shah’s lawyers will file a caveat and delay the re-arrest longer.

The Judgment also shows that if Jignesh Shah can appear to be innocent, then alleged scammers like Harshad Mehta and Ketan Parekh need to be acquitted with honors immediately. They did play and rig prices on an exchange platform. They did not rig the exchange platform per se, the way Jignesh did. Till date, an exchange scamming investors is not been heard of before Jignesh Shah’s ingenious mind was exposed bare to the world, courtesy a long pending FMC order of July 2013.

Likewise, Subrata Roy who has spent almost 6 months in jail now is not even accused by any investor or a law enforcement body like EOW or any Police authority. There are no real investors of Sahara, as the SEBI charge goes. It surely warrants seizure of assets, but why keep Subrata Roy Jailed, if people like Jignesh Shah can get bail.

And before its too late, the recentmost case of Nirmal Singh Bhangoo of Pearls needs to be relooked by weighing it against Jignesh Shah’s bail order. Why trouble comparative investor friendly people like Subrata Roy and Nirmal Singh Bhangoo when Jignesh Shah’s can get bail.

India’s apex court finds Coal Block Allocation Arbitrary and Illegal.. Yet Blocks of CoalGate awaiting cancellation and re-allocation under established guidelines.

The long awaited judgment of Supreme Court of India on CoalGate is out. The Allocations from 1993 to 2010 have been termed as arbitrary and illegal, yet the court stopped short of cancelling the allocations today…Though its expected that some guiding formula will be directed by the court next week, the so claimed transparent auction mechanism may not be the best route in public and national interest.

The example of 2G spectrum auctions is clear. In 2009-10, the prices of telecom services had reached their lowest possible. As low as 20 paise per minute. After the auction of the national resource, the same call rates hover around 50 – 70 paise per minute. And it’s the end users like us who end up coughing it out.

Coal is an important national resource that goes for producing essentials like electricity required by every household and commercial establishment in the country. A person can do without a mobile but not without electricity. Every rupee increase in cost of coal will find recourse from consumer’s pockets. The need is limited to a fair discovery of coal prices and their rationalization for power plants across the length and breadth of India. Auction is a solution, but not the only solution for a critical natural resource like coal. At best, the government can look at fixing a Price Cap on the power generators who bag the coal blocks that will come for auction in the months to come. Auctioning them will finally burden the common man. Whereas, our PM Narendra Modi won the elections emphatically assuring the common man to reduce the burden of increasing cost of living.

Naveen Jindal to Chair Publicity Committee for Congress in Haryana Elections, as Subhash Chandra eyes a back room Publicity strategist post from BJP. Icons of Hissar set for another fierce bout.

Crossing paths has become unavoidable for the two icons of Hissar. Naveen Jindal and Subhash Chandra are all set to fight a new bout in the Haryana Assembly Polls. Naveen Jindal has been appointed as the Chairman of Publicity Committee for Congress at a time when the CoalGate investigations are at a crucial stage. Any adverse remark can impact the chances of Congress significantly. While the older Ambassador of Hissar, Subhash Chandra is going strong to get a significant back room publicity strategy role for BJP in his home state, and possibly a ticket from a constituency of his choice – if he chooses to. 

Chandra had extensively campaigned against Naveen Jindal in the Lok Sabha polls where 2-time sitting MP Jindal came on third position. Like Chandra, Jindal is also said to have complete paraphernalia amongst his staffers to plan and execute the Publicity Strategy for Congress under his leadership. Though, the Cavalry was found lacking during the Lok Sabha polls, ultimately becoming the cause of the near-impossible defeat of Jindal becoming a reality.

Chandra Camp on the other hand is comfortable with Naveen Jindal’s Cavalry that was beaten black and blue by the Lone Ranger Subhash Chandra, who camped in Kurukshetra for a week to ensure defeat for Jindal. Chandra’s think tank has already chalked out a complete Amit Shah Like Plan for the Haryana Assembly elections. Chandra camp claims that Jindal may yet not have started briefing his team of loose canons who misfire at the right time. Chandra camp also indicates that Jindal was not even in the country when the Congress Press Release rolled out to the media.

Inspite of the bitter defeat in the LS elections, Naveen Jindal is a man who cannot be taken lightly by anyone, especially his bête noire Subhash Chandra. The wounded Lion is waiting for the right opportunity and has all the power, brains and money to put up an altogether new cutting edge crack team, that can make an over-confident Subhash Chandra bite dust with ease. Irrespective of the recent big win, Chandra cannot afford to keep a callous attitude towards the capabilities of Naveen Jindal. Especially when Jindal too is fighting a do-or-die battle which would decide the future course of his political career, and according to some critics his fledging business empire too.

A leading Journalist could have saved a good Rs. 2600 crore of NSEL Scam-med Investors, if Jignesh Shah was exposed in 2012..

It may well be a shock to many and a horrific surprise to others to know that a leading journalist had stumbled upon the NSEL Scam a good one year before the Empty Warehouses were unveiled in the public eye after FMC forced Jignesh Shah promoted spot exchange to stop trading in fictitious commodities. The name of this leading journalist would be an even bigger shock, if and when it comes out in the open.

As the story goes, a chain of emails were found in the email account of former CEO Anjani Sinha, who once was the top henchman of Jignesh Shah to perpetuate the scam which cost 13000 investors a whooping Rs 5600 crore. An amount which still remains to be recovered from the mastermind of the scam, which virtually necessitates a forced merger between NSEL and Financial Technologies to get access to the reserves of Jignesh Shah’s flagship firm to repay the investors.

It is said that the eminent journalist known to break scams did have the details of every wrongdoing at NSEL. The chain of emails supposedly carry queries sent by the journalist to the ex-CEO of NSEL dating sometime towards mid-2012. As per estimates the NSEL Scam would have been worth around Rs. 3000 crore, if it would have been exposed an year ahead of its imminent discovery. According to a highly reliable source, the journalist had accurate details on the workings of the shady subsidiary Indian Bullion Merchants Association (IBMA) which was also being used as a vehicle to take calculated positions on MCX to make windfall gains. It is not clear whether the eminent scribe had information that the profits being created using IBMA were pilfered through a maze of companies by the scamsters.

Somehow, after a serious of mail exchanges, the trail went cold. Apparently, one of the accused in the NSEL Scam who was arrested disclosed that a meeting was held between this leading journalist, Jignesh Shah and Anjani Sinha at Taj LandsEnd – a 5 star hotel in Mumbai. The result of the meeting was a long-drawn silence from the publication of this leading journalist. Alas if this journalist had exposed the wrongdoings at NSEL a year ahead, it may have saved close to Rs. 2600 crore of investor wealth and added another feather to the eminent scribes hat too. It was not to be… But the mail trail between Anjani Sinha and the leading scribe does exist in some files that are getting covered with layers of dust as the clock ticks everyday…day after day…

Issues are in the Mind.. Simple Solution in a Court Room to force-merge Jignesh Shah flagship FT with scam ridden NSEL to give 13000 investors their due….

A leading newspaper has recently raked up the issue of numerous legal issues that may arise if government takes steps to force-merge scam ridden NSEL with Jignesh Shah’s flagship Financial Technologies in order to have access to fledging reserves of FT to repay 13000 investors. The suggestion initially mooted by Investor Activist Ketan Shah and formally proposed to the government by the regulator Forward Markets Commission (FMC) is the only visible way to ensure that the entire Rs 5600 crore gets repaid to the 13000 investors who have been cheated of their rightful dues for over a year now.

Inspite of attempting to paint a Legal Issue Laden picture to its readers, and the decision makers too, the article turns out to be lame on both its feet having no logical content to back up the “legal issues” such a merger would have to face. First and foremost, NSEL Scam has given rise to a new dimension of investor activism in India where a handful of the 13000 investors have stood tall for over a year to ensure that a powerful man like Jignesh Shah goes to the place he deserves. There has never been a past precedent of this nature, and hence any past precedents of no such merger ever happening automatically stand meaningless in this case.

Secondly, there is always a first time for everything. In the recent past, Indian Judiciary has shown that there is a will to shrink the “long drawn legal battles” and give expeditious verdicts. The prima facia facts of NSEL Scam and the FT – NSEL – Jignesh Shah veil would not be difficult for the Judiciary to look through to pass a landmark judgment. A Judgment which itself becomes a first-of-its-kind precedent to ensure that Jignesh Shah clones who have been perpetuating NSEL like scams and are still out in the open get a shiver down their spine.

Thirdly, the claims of Jignesh Shah and his associates claiming ignorance of the wrongdoings at NSEL have been exposed bare by EOW of Mumbai Police, FMC as well as Forensic Audit. Even the FT Shareholders who enjoyed dividends and handsome value appreciation had reposed full faith in Jignesh Shah and should not have any issues to share the part of losses or outgo from FT due to deeds of Jignesh Shah.

Any legal issue that may be cited as a barrier to ensure repayment to investors needs to be nipped in the bud. And a Court Order can eradicate each and every issue that may come on the way. An order which at best may take 2 months. An order that will aptly punish Jignesh Shah alongwith his associates to set a precedent like never before. But that need may not arise, as the bureaucracy has enough powers to exercise so as to force merge FT with NSEL. Till then, every penny in FT’s accounts from sale of stakes in various exchanges needs to be frozen and an administrator appointed to track and approve every expense FT incurs till FT reserves can be accessed for repayment to 13000 investors.

Media Baron Subhash Chandra dismisses patch-up with Steel King Naveen Jindal.. Zee Jindal Saga to continue..

Last week may have marked a new beginning in the Zee Jindal Saga with both sides agreeing to end the 2-year-old war. It was not to be.. As an informed source indicates, media baron Subhash Chandra has again dismissed any possibility of a peace formula with his younger country cousin from Hissar. The Source also indicates that the failed entry of Naveen Jindal to the BJP has nothing to do with Subhash Chandra. According to the source, the gates of BJP were never open for the Steel to Coal Billionaire, not requiring Subhash Chandra to flex his muscles.

As the story goes, Zee camp reluctantly confirms that olive branch has indeed been offered from the other side on atleast 3 occasions, which Subhash Chandra has outrightly rejected. Chandra is said to be confident that even if he is charge-sheeted, there is absolutely no evidence that he will be convicted by a Court of Law. On the other hand, the 2 editors of Zee who also stand accused in the Zee – Jindal alleged extortion case might be the ones who end up facing the music from the Court. A verdict the Zee camp can anyways challenge in a higher court.

Zee Camp has also expressed that there is no withdrawal from their fight to expose the chinks in Jindal’s Steel Empire. The obvious target are the business interests of Naveen Jindal where the channel suspects a laundry list of issues that can be exposed to the public eye. On a reverse attack from the Jindal Camp, the Zee source indicates that they are prepared to answer every issue that gets raised at behest of their opponents.

As per the source, there is no reason why Subhash Chandra should bow down at this stage. Even if some exposes come on the Zee Empire, Subhash Chandra can handle them using the might and influence that the media baron commands in the media owners club of India. Zee Camp is eagerly awaiting the forthcoming chargesheet by CBI in the Coal Gate case, where Naveen Jindal alongwith Dasari Narayan Rao stand accused. Expectations of a whip lashing out from Enforcement Directorate (ED) is also being speculated in 2-3 months time.

NSEL Scam drives Jignesh Shah’s Flagship Financial Technologies on Path to Slow death. Stake Sale peps balance sheet, as MCX acts tough to re-negotiate contract..

The Flagship Firm of Jignesh Shah and erstwhile star performer on Indian bourses Financial Technologies is heading towards a slow death. The recently announced Q1 results of the company, on a closer look, show that the once upon a time technology innovator has started running into operational losses.

As a matter of record, the firm posted a Q1 profit of Rs. 128 crore piggy-riding on a Rs. 172 crore one time gain through stake sale in India’s largest commodity exchange MCX. Without this one-time gain, and purely on basis of operational income the company would have posted a loss of Rs. 44 crore in the quarter as compared to a profit of Rs. 81 crore in Q1 of previous fiscal.

The steady decline in the operating revenues of FT clearly show the over-dependence of the firm on NSEL’s revenues. In Q1 2015, FT reported an operational income of close to Rs. 44 crore. The operational income in Q1 2014 stood at Rs. 104 crore. The massive drop can be attributed to zero revenue from NSEL and drop in revenue from MCX. In Q4 2014, FT clocked operational revenue of Rs 56 crore odd.

Total operational expenses of FT in Q1 2015 stood at over Rs. 67 crore, clearly showing a Rs. 23 crore operational hole before finance costs and depreciation.

The bread and butter STP Solution Income primarily dependent on the exchanges Jignesh Shah once founded has shown a dismal performance. From STO Solution revenue of Rs. 93.30 crore plus in Q1 2014 (pre NSEL Scam) the STP Solution revenues have fallen to a dismal Rs. 37.22 crore, a 60% drop.

The revenue hole would be exposed bare by Q3 2015 by which time the new MCX management would have re-negotiated their STP contract with the Jignesh Shah promoted firm. The negotiation is expected to end within a week’s time, and the fresh terms will commence from September 2014. Amongst the key re-negotiations, the fixed fee may be halved from the current Rs 5 crore with possibilities of Trade-based fees being marginally lowered. The 33-year contract would also cease to exist and MCX is likely to induct another Technology vendor by end of calendar year 2014.

Interestingly, the dependence of FT on NSEL’s revenues is laid bare in the financial results of Jignesh Shah’s own flagship. A point which can further emphasize EOW of Mumbai Police charges under which the now disgraced poster boy is cooling his heels in jail currently.

 

 

 

 

 

Jignesh Shah bail order to be pronounced in 66 hours.. Will Bad Shah stay to give company to broker friends??

The much-awaited Bombay High Court bail order on Jignesh Shah is awaited on Thursday or Friday. Already delayed by a week, the order is expected to make the Bad Shah of NSEL Scam stay as a government guest under hospitality of Mumbai Police for a few weeks more. Some old broker friends of Jignesh Shah are expected to join him soon for company. One of Shah’s old pals Chirag Shah is said to be on top of the list. Chirag Shah is a senior official with a brokerage Philip Capital. According to sources, Chirag Shah has been frequently seen at the Court during hearings of Jignesh Shah. Apparently Chirag Shah also made a flying visit to Delhi a few days back hoping to find a way to help mate Jignesh Shah.