Mother of All Scams – ESSAR OIL – Rs.6300 cr to Rs.66,300 cr Plus Scam2
February19, 2013/April14, 2014
Honorable Chief Justice of India,
Supreme Court of India,
New Delhi -110001
Executive
Summary:- ESSAR
OIL founded by Promoters Ruia Brothers 87.96% Controlled from Mauritius with
Rs. Few Crores Investment Was Soon Registered as a Company – Allotted Land
Cheaply, and Sales Tax Deferment of 125% for 10-12 years or Rs.6300 crores in
1995-98 – After Raising Capital and Bank Loans ESSAR OIL diverted Money to a
Telecom Joint Venture ESSAR HUTCH in
2000 in India that was Scaled Up soon to be worth $20b by 2007. HUTCH the Singapore partner exited and
Transferred its equity to VODAFONE for $12b
in Offshore Deal. This is Mother of All Scams – Rs.6300 crores + Rs.60,000
crores Plus Many Other Concession over 15 years. State of Gujarat and NDA let a
Foreign Company say Rs.70,000 crores Enrichment that has no equal in the world
that neither created many Jobs nor benefit Indian Shareholders who own 4.5%
Only Are Yet to Get Dividend. State of Gujarat, Shri Yashwant Sinha then
Finance Minister and current Chairman Finance Commission along with Arun
Jaitley then Law Minister and current Leader of Opposition in Rajya Sabha be tried for Corruption and Facilitating MOTHER OF ALL SCAMS while Neglecting
BASIC DEVELOPMENT OF GUJARAT – 90% of GUJARAT COTTON IS EXPORTED WITHOUT ANY
VALUE ADDITION THAT COULD HAVE DOUBLED GUJARAT GDP and CREATED 2.5 MILLION
JOBS.
$Trillions
Had Been Siphoned Out of India Through Such Scams – Hence CBI Investigation or
JUDICIAL PROBE is Prayed to Unearth Scam, Recover Loot & Plug Loopholes.
I have verified the Evidence
and confirm everything stated above is correct. Original Detailed PDF is annexed.
This is also available through Google Search also.
Hindi version
Hindi version of ‘Mother of All
Scams – ESSAR OIL – Rs.6300 cr to Rs.66,300 cr Plus Scam’ is available in
Dialogue India
magazine P-22 to 26.
Thank you,
Ravinder Singh*,
Inventor & Consultant
INNOVATIVE TECHNONLOGIES AND PROJECTS
Y-77, Hauz Khas, NewDelhi-110016, India.
e.mail; progressindia008@yahoo.com,
Ravinder Singh* is a WIPO awarded
inventor specializing in Power, Transportation, Water, Energy Saving,
Agriculture, Manufacturing, Technologies and Projects.
Mother of All Scams – ESSAR OIL – Rs.6300 cr to Rs.66,300 cr Plus Scam
February19, 2013
Honorable Chief Justice of India,
Supreme Court of India,
New Delhi -110001
Executive
Summary:- ESSAR
OIL founded by Promoters Ruia Brothers 87.96% Controlled from Mauritius with
Rs. Few Crores Investment Was Soon Registered as a Company – Allotted Land
Cheaply, and Sales Tax Deferment of 125% for 10-12 years or Rs.6300 crores in
1995-98 – After Raising Capital and Bank Loans ESSAR OIL diverted Money to a
Telecom Joint Venture ESSAR HUTCH in
2000 in India that was Scaled Up soon to be worth $20b by 2007. HUTCH the Singapore partner exited and
Transferred its equity to VODAFONE for $12b
in Offshore Deal. This is Mother of All Scams – Rs.6300 crores + Rs.60,000
crores Plus Many Other Concession over 15 years. State of Gujarat and NDA let a
Foreign Company say Rs.70,000 crores Enrichment that has no equal in the world
that neither created many Jobs nor benefit Indian Shareholders who own 4.5% Only
Are Yet to Get Dividend. State of Gujarat, Shri Yashwant Sinha then Finance
Minister and current Chairman Finance Commission along with Arun Jaitley then
Law Minister and current Leader of Opposition in Rajya Sabha be tried for Corruption and Facilitating MOTHER OF ALL SCAMS while Neglecting
BASIC DEVELOPMENT OF GUJARAT – 90% of GUJARAT COTTON IS EXPORTED WITHOUT ANY
VALUE ADDITION THAT COULD HAVE DOUBLED GUJARAT GDP and CREATED 2.5 MILLION
JOBS.
$Trillions
Had Been Siphoned Out of India Through Such Scams – Hence CBI Investigation or
JUDICIAL PROBE is Prayed to Unearth Scam, Recover Loot & Plug Loopholes.
Respected Sir,
Justice M. Katju is fighting
Corporate Control and Manipulation of news. His charges are valid but modest –
above headlines underlines the real magnitude. Biggest treacheries of Mr. Arun
Jaitley, Mr. Narendra Modi and Mr. Yashwant Sinha were First Repeal of FERA,
Two opening wide of Mauritius Route, Three Ejection of Retail Investors in
companies and Four no control over Transfer of funds to other companies than
desired application or declared purpose. 87.96% of ESSAR OIL is held by Essar
Energy Holdings Limited based in Mauritius.
ESSAR OIL SCAM alone is 1000
times larger than Bofors – This has ‘Made Our Companies Systematically Most
Corrupt’ – Controlled and Operated from Foreign Countries. This is worse than
British Raj – they control our media as well through it Dictate Government
Policies in to Wrong Doing and Preventing Lawful Functioning.
Gujarat allowed Rs.6300 crores sales tax
deferment on Rs.5544 crores Capital Investment to ESSAR OIL. It may not have directly made much impact but ESSAR
with this Corrupt Policy managed to procure Huge Amounts of Funds from Banks
and Markets and diverted money to Fast Emerging Telecom Sector and promoted
ESSAR-HUTCH under Gujarat-NDA rule.
Hutch with cumulative investment of under $1b managed to profit $12b
plus in offshore deal with VODAFONE.
It was not just Rs.60,000 crores LOSS in telecom but helped ESSAR expand
Refining Capacity 3-4 fold at no real investment.
Arun Jaitley as Law Minister
and Key advisor – One Removed FERA that led Flood Gates of SCAMS and Flight of
Capital and Black Money Returning as White Money Fraud, Two Let Companies Throw
Out Retail investors and take over their Equity Themselves Is Biggest CORPORATE
SCAM in world history. Indian public share holding in ESSAR Oil is just 4.5%.
On turnover of Rs.53,119 crores, Salary to employees
was just Rs.119 crores just 0.2% and there was no dividend for 17 years
company. ESSAR sold half of its products in India. In fixed assets of Essar Oil
– Cost of Land was just Rs.140 crores in Total Assets of Rs.13,668 crores – not
even 1% for farmers.
Though the Tax Deferment
scheme expired in 2000 as could be made out in Supreme Court judgment, ESSAR
would actually refund the money fully by 2014, Chief Minister Mr. Narendra Modi
continued to shower even bigger packages to Corporate like Mr. Ratan Tata for
NANO project in 2008.
ESSAR took advantage of
Gujarat and then RELOCATED CORPORATE HEAD QUARTER in London around 2008 with its Majority
Holding.
Just this Rs.6300 crores Tax Deferment could have
‘Promoted Cotton-Garments Clusters’ creating 2.5 million jobs and made Gujarat twice more Wealthy than today. Gujarat
exports raw cotton – there is no increase in Cotton Textile Production since
2000 – actually some shut down factories were sold out for Real Estate projects.
ESSAR and RIL refineries are
mainly Export Oriented Draining Indian Resources – are viable due to tax
concessions, India
get only all the pollution.
Worst – 75% of Gujarat cultivable area is dedicated to Non Food Crops,
people are so poor that they rear on average 2-3 animals but don’t drink milk.
Punjab produce more milk from 6 million farm animals than Gujarat
from 27m – Modi has added 7m animals for its people to rear.
Prayer
Please
order CBI Investigation or JUDICIAL PROBE to Unearth Scam, to Recover Loot
& to Plug Loopholes in System and Governance.
Thank you,
Ravinder Singh*,
Inventor & Consultant
INNOVATIVE TECHNONLOGIES AND PROJECTS
Y-77, Hauz Khas, NewDelhi-110016, India.
e.mail; progressindia008@yahoo.com,
Ravinder Singh* is a WIPO awarded
inventor specializing in Power, Transportation,
Water, Energy
Saving, Agriculture, Manufacturing, Technologies and Projects.
[Brothers Shashi and Ravi Ruia's Essar Group is a $27
billion (revenues) conglomerate with operations in 25 countries. It has spent
$18 billion since 2008 in expanding capacities, notably in steel and oil
refining. Shares of its London-listed Essar Energy more than halved in past
year, hit by delays in getting approvals for mining coal and by a Supreme Court
ruling that it was liable to prepay more than $1 billion in state taxes. In
May, Antwerp Port Authority bought minority stake in their Essar Ports.
Brothers delisted India Securities. They are looking to sell their stakes in
outsourcing firm Aegis, US steel operations and their telecom interests
in Kenya,
to bring down the group's $12 billion in debt. In August, the group moved into
new corporate headquarters in the Bandra-Kurla Complex, an upcoming financial
district in suburban Mumbai; the brothers continue to operate from old downtown
offices.]
[Essar Oil Limited (EOL) is an India-based company. The
company is engaged in exploration and production of oil and gas, refining of
crude oil and marketing of petroleum products. The Refinery of the Company is
located at Khambhalia Post, Gujarat. The
Company’s oil fields are located at Mehsana, Gujarat and the Coal Bed Methane
(CBM) fields are located in Durgapur, West Bengal. The Company has complex refinery of 20 MMTPA
(million metric tons per annum) at Vadinar, Gujarat,
which has a crude refining capacity of 405,000 barrels per stream-day (bpsd).
The Company also has a portfolio of eight oil and gas blocks in India
with about 1.7 billion barrels of oil equivalent in reserves and resources.
During the fiscal year ended March 31, 2012 (fiscal 2012), the Vadinar refinery
processed 25 varieties of crude, including ultra-heavy and tough crudes. The
crude slate consists of Mangala crude from Rajasthan. During fiscal 2012, its
refinery processed 13.5 million tons (98.41 mmbbl) of crude.]
SC orders Essar Oil to pay Rs 6.3K cr sales tax to Gujarat
Express news service
Dismissing an argument by Essar Oil that it had failed to start production from its refinery in Gujarat due to an “Act of God”, the Supreme Court (SC) on Tuesday directed the Ruia-owned company to pay about Rs 6,300 crore in sales tax to the government. A bench led by Justice Asok Kumar Ganguly observed that the company cannot benefit from a government exemption scheme despite not launching production during the scheduled qualifying period from the refinery at Vadinar.
Dismissing an argument by Essar Oil that it had failed to start production from its refinery in Gujarat due to an “Act of God”, the Supreme Court (SC) on Tuesday directed the Ruia-owned company to pay about Rs 6,300 crore in sales tax to the government. A bench led by Justice Asok Kumar Ganguly observed that the company cannot benefit from a government exemption scheme despite not launching production during the scheduled qualifying period from the refinery at Vadinar.
Companies are eligible for a
tax benefit up to 125 per cent of investment in a project as per the 1995-2000
New Capital Incentive Policy scheme of the state. The state’s Industries
Department had moved the SC after Essar Oil won the case in the Gujarat High
Court in April 2008.
Essar Oil shares plunged by
7.85 per cent to Rs 58.10 on the BSE on Tuesday following the SC verdict. The
payout to the state is almost 80 per cent of Essar Oil’s current market capitalisation
of Rs 7,934 crore. It had posted a net profit of Rs 654 crore in fiscal 2010-11
and a loss of Rs 166 crore in the quarter ended September 2011.
In the Supreme Court, Essar
had contended that its project had failed to take off start during the required
period because of an ‘Act of God’ — a cyclone that hit the Gujarat
coast in 1998. The refinery had started operating only in 2006. The Vadinar
refinery is also the subject of an arbitration process in which the company is
claiming about Rs 3,020 crore from United India Insurance. The company argued
that it had provided for the tax payment in case it lost the case.
According to the company,
investment in the plant was about $5 billion and its 2010-11 turnover was $10
billion. “The company has availed of approximately Rs 6,300 crore of sales tax
benefit as of December 2011 which was to be paid in deferred installments. The
company will provide further information in the matter after studying the
judgment passed by the Hon’ble Supreme Court,” the company said in a statement
to the stock exchanges.
While setting aside the
Gujarat High Court order of granting concession to the company, the SC observed
in the order that “ the principle that in case of ambiguity, a taxing statute
should be construed in favour of the assessee, does not apply to the
construction of an exception or an exempting provision, as the same has to be
construed strictly.”
Essar had initially applied
under the new investment policy in August 1995 for its refinery project with a
projected investment of Rs 5,544 crore. The company initially claimed of
starting from the first quarter of 1998 but could not launch till four years
later. In April 2002, it told the government that considerable time was lost in
reassessment and construction could begin in June 2002, and production by
November 2004 and asked for an extension. Environmental clearances held up the
project and the company could not start the plant until 2006.
No ‘act of God’
* The Supreme Court observed
that a company cannot benefit from exemption despite not launching production
during the qualifying period
* Essar had contended that
it had failed to start its oil production project on account of a cyclone in
1998, which it said was an ‘act of God’
Govt on ‘high ground’ stumbles in court
State
Has Been Getting Shockers From HC For Its Stand On Sensitive Issues
TIMES
NEWS NETWORK
Ahmedabad: While holding that the state government was bound to give scholarship benefits to students belonging to minorities, the Gujarat high court observed that it was not inclined to spend money for the benefits of the poor.
This was, however, not for the first time that the Narendra Modi government got a jolt from the judiciary for its stand over some sensitive issue. The state government’s stand on various important issues has not withstood the judicial scrutiny. It took the Supreme Court to direct the reluctance Gujarat government to introduce mid-day meal scheme for students as incentives to attract students to schools.
As it was adamant on denying scholarships to students of minorities, the government tried to assert that its secular commitments did not permit it to pay compensation for the shrines that were damaged during the 2002 riots. The Gujarat high court ordered it to pay damages for the targeted religious structures and criticized it for its inaction during the communal strife.
Similarly, for the last two years, the state government has been unsuccessfully trying to trounce the governor’s decision to appoint retired HC judge R A Mehta as Lokayukta. In its pursuit to convince that the governor could not have ignored the elected government, it invites criticism from courts for keeping the crucial position vacant for a decade.
In
another important case, the state government unsuccessfully defended its
minister Purushottam Solanki who was allegedly involved in Rs 400 crore
fisheries scam. The high court, however, upheld the governor’s sanction to
prosecute the minister.
Last
year, the high court dubbed the government’s scheme of fixed wages for new
recruits in various departments as an inhuman approach and exploitation and
rapped the administration for giving unequal treatment to its employees. The
government does not want to spend more after employees, and has moved the
Supreme Court.
The state government did not remove Pota in the Godhra train burning incident despite Pota Review Committee’s recommendations. Finally the state government’s stand was negated by the high court, and the accused were tried and punished under the IPC by special SIT court. The government moved the SC on this issue also.
The government’s insistence that the state police should probe alleged fake encounters has not been accepted by the high court, as well as, the apex court.
Essar Oil delisting proposal gets shareholders’ nod
PTI
Mumbai: Essar Oil Ltd said
on 15 March it has received its shareholders’ approval for delisting the equity
shares of the company from Bombay Stock Exchange and National Stock Exchange as
per Sebi guidelines.
Essar Oil informed the BSE
that the shareholders have passed a special resolution by way of postal ballot
to delist the shares.
At present, Essar Energy
Holdings Ltd (EEHL) together with persons acting in concert (PAC) hold around
217.2 million equity shares and over 5.12 million global depository shares,
representing approximately 784.3 million shares aggregating to 87.96% of Essar
Oil’s total equity share capital.
Essar Energy Holdings is a
Mauritius-based subsidiary of Essar Global Ltd.
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