Raj And Raju Chinttaa Nakko
Reproduced from Mumbai Mirror of December 16, 2008 front page
Mr NATWARLAL SURRENDERS
Rajkumar Basantani, 53, had been on the run since 2004 after defrauding public and financial institutions of Rs 1,000 crore
DANISH KHAN
A former State Bank of India employee, who had been on the run since 2004 after defrauding the public and financial institutions of Rs 1,000 crore, quietly surrendered in the Bombay High Court last month.
Rajkumar Basantani, 53, had mobilised the money by offering high returns on fixed deposits. Most of the investors were from Mumbai and its vicinity. His companies – SoundCraft Industries and Kolar Biotech Ltd – were based in Mumbai and were popular with the Sindhi community.
Among his victims is Raj Tilak, a Juhu resident and film producer. “Forget individuals, he defrauded banks and financial institutions in a big way. We are very small victims,” says Tilak, who lost a few lakh rupees.
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Indian Judiciary ... Is it stinking ?
http://www.facebook.com/home.php?#/group.php?gid=40507761800The fraud was exposed when Basantani defaulted on payments after March 2004. Investors approached the Economic Offences Wing (EOW) of the Crime Branch after he failed to return the principal amount on maturity.
Basantani fled the country on April 5, 2004.
Investigators learnt that Basantani had deployed the funds in the stock market to increase the prices of the shares of his companies. They learnt that he had named drivers, peons and other sundry employees of his firm as directors of his companies. Among other things, he had reported a stock of diamonds worth Rs 211 crore in his company’s accounts, but a raid by the Income Tax revealed that there was no such stock.
“Though his main business was export of diamonds, he used the funds from the fixed deposits to increase the share prices of his companies and indulged in various other wrongdoings,” said a Crime Branch officer.
SEBI had restricted sale or purchase of his companies’ shares after finding that he had flouted several rules.
Basantani stayed in New York, USA after fleeing India. Subsequently, a red corner notice (No A/82/1-2005) was issued against him, making it difficult for him to travel anywhere, even within the US.
“He surrendered in Mumbai last month and is currently in judicial custody,” said Sanjay Saxena, additional commissioner of police, EOW.
Surrendered why ? ...
This article that appeared, does not give info, about how the police and High Court Judges, quitely worked, to allow this fraudster to travel to India AND SURRENDER ... So that they can find it easy to release him on bail. The External Affairs Ministry, issued special travel papers, so that he can travel to Mumbai and SURRENDER.
All proceedings, were hidden from the press and press was never informed, about his arrival on 16th November 2008 at Mumbai Airport.
This is the man behind my arrest in a false case, this man managed police and Judges ... all because I dared to purchase in Bank auction, a flat that he owned, before absconding.
Have made a written complaint to Chief Justice, Bombay High Court against this Judge Now.
>>> PIL in HC filed on 24.12.2008 against Home Minister, Maharashtra Government and Police Commissioner
............................................................................................................................................................................ Reproduced from Mumbai Mirror of januar 7, 2009 front page 2
‘Mr Natwarlal’ is out on bail
Ex-bank employee Rajkumar Basantani is accused of cheating public, financial institutions of Rs 1,000 cr
HETAL VYAS
Rajkumar Basantani, a former State Bank of India employee accused of defrauding the public and financial institutions of about Rs 1,000 crore, was granted bail by the Bombay High Court on Tuesday. Justice V M Kanade let Basantani out on a bail of Rs 25,000 and one or two sureties of the same amount.Basantani, 53, surrendered in October 2008 after being on the run since 2004. After spending more than two months in custody, he applied for bail saying, “I was illegally proclaimed an absconder and a red corner notice was issued by a sessions court under the Maharashtra Protection of Interest of Depositors (MPID) Act.”
Justice Kanade granted bail, observing that the Bombay High Court had struck down the MPID Act. “He has been directed to attend the Economic Offence Wing (EOW) office once every month,” additional public prosecutor Raju More said.
THE CASE SO FAR
Basantani allegedly mobilised money by offering high returns on fixed deposits. His companies – SoundCraft Industries and Kolar Biotech Ltd – were based in Mumbai and were popular with the Sindhi community. The fraud was exposed when Basantani defaulted on payments after March 2004.Investors approached the Economic Offences Wing of the Crime Branch when he failed to return the principal amount on maturity. Basantani fled to New York. Subsequently, a red corner notice was issued against him, making it difficult for him to travel anywhere, even within the US.
How Corrupt is our judiciary, discover yourself:
This man engineered my arrest, in a false case after bribing the Police and judges.
I was released on bail and asked to report to Khar PS 2 times EVERY WEEK. My wife and Son were required to attend the police station EVERY DAY for 3 weeks, till anticiptory bail was finally allowed.
Compare this with the report above, where a Rs 1000 crore fraudster is given bail on a Rs 25,000 bond and required to report ONLY ONCE A MONTH. The difference is, we did NOT pay a bribe to the Judge. ... I K Chhugani
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Reproduced from Mumbai Mirror of December 17, 2008 front page 7
SEBI slaps Rs 15 crore penalty on Basantani
The market regulator’s order comes after two-year probe on Rajkumar Basantani, who swindled people and banks out of Rs 1,000 cr, comes to an end
DANISH KHAN
Even as Rajkumar Basantani is cooling his heels in jail, the Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 15 crore on him. Basantani, who had fled the country after defrauding the public and banks to the tune of Rs 1,000 crore, quietly surrendered to the Bombay high court. Basantani has filed for bail in the HC which will come up for hearing on January 7, 2009.
SEBI’s order, issued few days back, came after a two-year probe on Basantani and his companies. The probe among other things has revealed that even though Basantani’s Dadar office was seized by banks for recovery of advances, his company had informed the Bombay Stock Exchange (BSE) that they were going to hold board meetings at their registered office.
The probe report observed, ‘The BSE officials who visited the company’s registered office on August 18, 2004 observed that the office has been sealed through notice dated July 28, 2004.
Although the company did not intimate the exchange regarding such adverse developments, it intimated the exchange through a letter dated July 29, 2004, that a meeting has been fixed at its registered office on August 3, 2004. The venue of the said meeting was already sealed before the date of communication by the company.’
Basantani was issued an Emergency Certificate by the Ministry of External Affairs after which he came down to Mumbai from New York, USA as a Red Corner notice was issued against him. This would mean he would be arrested at the airport.
“Basantani had approached the Sessions court where he had pleaded that the Red Corner notice against him be stayed so that he could travel back to India. In its order the court stayed the Red Corner notice against him for a week. However, the HC agreed with the state counsel that the Red Corner notice against him can’t be stayed,” said a crime branch officer.
Interestingly, Basantani shares his birthday with Harshad Mehta and was proud of it. One of his aims was to own a private helicopter.
Basantani who was a resident of Khar, owned at least six cars which included a Mercedes, Esteem, Honda Accord, Santro and Qualis for his family of four. Basantani is also known to have donated huge sums to some clubs and gymkhanas in the city.
K R Pai, who retired from Godrej and now works as a freelance consultant for a soap manufacturing unit, had deposited Rs 20,000 of his hard earned money with SoundCraft. “For one year the company gave good and consistent returns but later they defaulted on payments,” said Pai, a resident of Bandra.
“I even visited the Economic Offences Wing (EOW) office at Crawford Market and spoke to the officers. Basantani had already left the country by then, taking away money of many depositors,” said Pai. Around 300 individuals had approached the EOW with their complaints against Basantani over the last few years. However, it is believed that more than 20,000 depositors had lost their money. Though most of them were from Mumbai and its vicinity, a good number of people hailed from Pune and Ahmedabad. One of Basantani’s company was also listed on the Ahmedabad Stock Exchange.
When Basantani fled the country, banks who had given him money flocked to seal his assets only to realise that they weren’t enough to recover the debts. In some cases, he used the same asset as security to various lenders.
HOW HE FOOLED HIS CLIENTS
• Hiralal Yadav, watchman at one of Basantani’s Dadar office, was shown as ‘director’ of Million Investrade Ltd. The company was one of the major client of Basantani’s firm.
• Vithal Patil, clerk employed by Basantani, was shown as director of Mastermind Mercantile Co-op Ltd.
• Shyam Sunder Pandya, an employee of Basantani was shown as ‘client’ to reveal better results
• Jugnu Securities, a firm Basantani started, had some of his own employees masquerading as director on paper.
>>> Indian Judiciary... Is it Stinking ?
Supreme Court Concedes ... the rot has set in Judiciary.
Example ... How Judges protect the corrupt
Warrant Industry...How the Magistrate / Police partnership flourishes.
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How to register FIR at Police Station ... Download files giving instructions.
How Mumbai Police framed Chhugani .. TOI of 24/07/06 ... Happens across India everyday.
Rogue Police of India ... Narayana Murthy of INFOSYS was also arrested
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