How Kalmadi reached Delhi, and slipped

      Source : Moneylife : Veeresh Malik:  April 26, 2011 05:53 PM

Suresh Kalmadi, the so-called darling of the voters and corporate chieftains from Pune, would not have come to much harm had he stayed content as the Lord Arbitrator in that once sleepy retirement town 

On Monday, as the rumour mills in Delhi worked overtime on the Suresh Kalmadi arrest process, much attention was once again focused on what is known as the "CWG scam", as well as various aspects of the Indian Olympics Association (IOA) and its activities in India. The fact remains that till as recently as a year ago, even the accounts of the IOA and Commonwealth Games (CWG) in India were not open to public scrutiny, despite almost total funding by the Indian government, with complete support of the Indian government and its multiple arms. As a matter of fact, Suresh Kalmadi's IOA and CWG defended vigorously across all forums—from the Central Information Commission to the Delhi High Court—their rights to not provide any information pertaining to accounts and activities, and they were backed by the Union of India in this.

Against yours truly, incidentally, was this complete effort mobilised. Until a judgment by the Delhi High Court changed the course of history; by clarifying once and for all the meaning of the term "public authority". (This, incidentally, is being challenged again, by no less an entity than the Securities and Exchange Board of India and a few others, with support from—you guessed it—the same government!)

But is this only about the issue of misuse of public money related to sports activities in connection with a series of incidents referred to as "embarassing" by the current government?

Actually it is all this, and much more, and it certainly does not start or finish with the present high-profile developments over the arrest of Suresh Kalmadi—darling of the voting public in Pune as much as he was a darling of corporate chieftains also from Pune and the page-3 wonders there.

If anything, he was and still is even in absentia the ruling chief as well as 'Lord Arbitrator' of this previously sleepy retirement town, which suddenly evolved especially over the last decade, as not just an extension of Mumbai, but as a hub of industrial, infotech, educational, religious and other commercial activities. This also included a property boom of the sort which Harold Robbin's "The Carpetbaggers" made famous, and a market for tax evasion and fake products which competed with Ulhasnagar; so extensive was its scale.

It has been said that every loaf of bread sold in Pune had two slices removed before it was re-packed, and these were reportedly for the "K Fund". The milk co-operatives were kept out of the retail market and Pune was one city where cooking gas was freely available, for resale, on the pavements of the city. So tight was his hold that even senior managers of central government organizations, like oil companies, would defer to him.

And lest we get taken in by the smug looks and grins on some of the faces of Bharatiya Janata Party (BJP) representatives doing their thing on television, be fully aware that the Big K was equally at home with the BJP and the Shiv Sena, as he was with the Nationalist Congress Party (NCP), in forming alliances as well as sharing the pie. In everything, there was a role and a share for everybody, and nobody knew how to keep things together with opponents as well as supporters as he did.

To a large extent, this was also because the growth in Pune was so exponential over the last decade, that there was enough to go around. So who was, or who is Suresh Kalmadi?

With an Indian Air Force background, which in itself has been the subject of some speculation on the how and why of his departure, to the rapid growth in and around his Poona Coffee House in the Deccan area of Pune's Jangli Maharaj Road, where he also started his filling station and Maruti as well as Bajaj dealerships, to greater game that is still whispered about in the corridors of Air India and ITDC, Kalmadi has been there and seen it all.

Big transport companies? Take a look at the track record of Neeta Travels and Ashok Travels and Tours, allegedly controlled by close friends. There's no smoke without fire, including all sorts of allegations pertaining to the misappropriation of cheques issued to similar sounding public sector companies, and the use of such inter-state bus companies for movement of a variety of contraband, including narcotics and counterfeit currency. Certainly, not proved, but then how does one prove such things?
Octroi evasion? Pune, like Mumbai, has its own octroi games. Along with Pimpri, as well as non-octroi areas surrounding both the municipalities, the environs in and around Pune are a genuine delight for those who wish to evade paying octroi, but certainly do not have an issue with charging it from unwary customers. It is well known that fake "octroi paid" certificates were available for almost everything, and every now and then the issue would be raised, to die down again.

Another racket in which Pune had become famous was as a location where the Road Transport Office (RTO) could be persuaded to do almost anything for a price. Whether this was responsible for Pune becoming a hub for the disposal of stolen vehicles is always whispered about.

But the real big games were always played out in Delhi. Whether it involved Air India or ITDC, or railways contracts, the Big K was always there in the background with his well-oiled fleet of fixers and movers playing their roles. Among various names mentioned in Delhi are his tie-ups with a nephew of the Nehru clan, who is also associated with a major international hotel chain which involves an ex-chief of Air India.

It has also been whispered that a hoard of documents have been kept by the Big K in these cases, with friendly contacts abroad—specifically with retired officers from a particular intelligence agency. And that's one reason for the delay in arresting him as these entities were slowly and steadily being neutralised.

Another good friend the Big K has is a famous filmstar-turned-BJP politician, whose daughter is an aspirational actress, and whose PR was handled by a company close to the Big K. The friend has been trying to use his not inconsiderable clout, as loud as a shotgun, but has been silenced due to reported linkages with Andhra politicians involved in the Hasan Ali case.

For sure, of course, we have not heard the last of the Big K. Unlike other people who have vanished quietly, he has been around far too long in the corridors of power in Delhi, and would have probably not come to much harm if he had stayed satisfied with his grip over matters in his part of the country. Nobody would, even now, dare question his hold.

But Delhi has always been the aspirational target for many people, and eventual graveyard for them too. While the efforts to save his skin continue, it seems that the word is out—he has been neutralised.

And Pune is now ready for a new leader, who will, hopefully, be loyal to Delhi, instead of trying to take on Delhi. You see, the real Marathas have already made their peace and signed their treaties, so others had to be side-lined. Besides, there is an old saying in Delhi—you really can not mix flour in salt, and then expect to make a paratha that everybody likes. Salt in small quantities in flour, yes.

Rich clients allege foul play by Standard Chartered

Source :30 APR, 2011, 10.24AM IST, NISHANTH VASUDEVAN,ET BUREAU 

Nearly three months after a rogue banker at Citi duped wealthy investors, some rich clients of another multinational lender, Standard Chartered, have alleged that they have been short-changed by the British bank. 

Standard Chartered, the foreign bank with the largest presence in India, sold debt securities to private banking clients with a promise to buy them back, according to sources in the wealth management industry. 

The products on offer included debentures of real estate firms and a Delhi-based education company. Investors were attracted by the buyback option-something not allowed under current regulations-and higher returns. 

Around Rs 150-200 crore of such debentures were sold by Standard Chartered relationship managers to their private banking and wealth management clients, said two people in the wealth management industry. 

In a response to an email query by ET, a Standard Chartered spokesperson acknowledged there was a problem, but described the estimates of Rs 150-200 crore as a "gross exaggeration". 

"We are investigating a small matter involving four customer accounts and are in the process of resolving it. We can assure you that your guesstimate on the amount involved is a gross exaggeration-as indicated, the matter involves just four clients. For reasons of client confidentiality, it will be inappropriate to comment any further." 

Standard Chartered did not comment on whether some of the investors were funded by the bank for investing in the debentures. 

The trouble began when some of the investors tried to sell the papers back to Standard Chartered. According to a source in the wealth management industry, the bank declined to honour such 'deals' because buyback or repurchase of corporate bonds cannot be carried out between a bank and a private client. Currently, repurchase, or repo in technical parlance, of corporate bonds can take place only between institutions like banks and bond houses that are regulated by the Reserve Bank of India (RBI). 

"These clients were keen to raise funds before March 31 financial closing, but were unable to do it. Some of them have threatened to lodge an official complaint. As of now, only a few clients have realised the irregular nature of the transaction," said the person. 

Standard Chartered has asked some officials to quit following investigations by the compliance department. Ashish Shankar, head of investment advisory at Standard Chartered Private Bank, is learnt to have gone on leave. According to sources, the bank is trying to make good the losses of clients who were misled by its relationship managers who had promised to buy back the securities, a promise Standard Chartered is not in a position to meet. 

India Inc's most powerful CEOs 2011: Ratan Tata tops the list for 3 years in a row

Source :29 APR, 2011, 06.53AM IST,ET BUREAU 

 Ratan Tata has topped the ET-Corporate Dossier ranking of India Inc's Most Powerful CEOs for the third year in a row, with Mukesh Ambani ofReliance Industries holding on to second position.

Telecom czar Sunil Mittal has moved from fifth to third position this year, while Azim Premji has climbed from sixth to fourth. 

The survey, which was conducted by IMRB in January, puts Anil Ambani at fifth position, a notch lower than last year. NR Narayana Murthy, who topped the ranking for the first three years of the annual survey, still retains his hold on the public imagination and remains in Top 10, at sixth position. 

The most dramatic entry into the Top 10 is that of Naveen Jindal,, who also happens to be a Congress MP, jumps 37 ranks to take his place at tenth position.

The survey, now in its seventh year, asked 500 senior executives from India Inc largest companies to rate India Inc's CEOs on leadership, strategy and innovation, performance, stature, social contribution and governance. Promoters continue their strong performance in power listing, with 52 out of the 100 CEOs are members of wellknown family business houses. 

Analysing the findings, business historian Medha Kudaisya of the National University of Singapore said, "Except for Mr Narayana Murthy, all others come from business communities traditionally associated with trading, money lending, and banking." 

Since a CEO derives his power from the company he controls, it is not surprising to find 13 heads of financial service companies on the list.

At eighth position, Chanda Kochhar of ICICI is India Inc's most powerful woman, followed by Shikha Sharma of Axis Bank , at 24. Other bankers in the top 20 are Aditya Puri and Deepak Parekh of HDFC , OP Bhatt of SBI and Uday Kotak of Kotak Mahindra. 

There are 40 professional CEOS on the list, including 11 PSU CEOs.

 Power is all in the mind, and the most powerful individuals are arguably those who are able to capture the public imagination with the power of their ideas.

 Along with the main CEO ranking, the ET survey also looks at other categories, such as global Indian business leaders, who have risen to powerful positions while based abroad. 

Topping this list is LN Mittal, followed by Indra Nooyi of Pepsico, and Vikram Pandit of Citi. In an era that has seen the rise of the Indian academicians world-wide, another interesting sub-category of the survey is that of global Indian thought leaders. 

The top three here are consultant Ram Charan , Nobel laureate Amartya Sen and Nitin Nohria , dean of Harvard Business School. 

The top three in the powerful MNC CEOs are Ravi Venkatesan , Naina Lal Kidwai and Nitin Paranjpe and in the most powerful women CEOs category, the top honours go to Chanda Kochhar, Kiran Majumdar Shaw and Naina Lal Kidwai. 

How has Ratan Tata managed to retain the top position despite his famed reticence and Radia tapes? 

Russi M Lala, biographer to both Jamsetji and JRD Tata said it is in part due to the reputation built by the previous generations of Tatas. "JRD always believed Ratan would be much like him. If he had been alive today, I am sure he would be proud of what Ratan has achieved," he said.