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WILL The Buck Stop — May be This One Works

Comments Off on WILL The Buck Stop — May be This One WorksPosted by on August 1, 2011

Olympic Gold Medalist of Corruption in recent olympics Mr. Suresh Kalmadi-led CWG fiasco became India’s shame; A Raja will have made the CWG affair look petty if it turns out that he has indeed caused national loss and brought global shame for India in the 2G scam as charged. Now B S Yeddyurappa and Janardhan Reddy are BJP’s A Raja, standing accused of being the shameful faces of mafia-like corruption. Now is the time to ensure that buck must stop.

The good news is that citizens are finally refusing to accept corruption as routine anymore and are demanding immediate accountability from those who they elect. Today, for the first time in independent India’s history five corporate CEOs, one IAS officer and several senior politicians find their new address as Tihar Jail No. 1. This could well be dubbed as India’s second  independence struggle, but this time it’s not against foreign rule, but for for freedom from corruption by our own rulers, and has begun in right earnest in 2010.

There are four immediate steps, which can be taken to control corruption.

First, the government must notify the rules for the confiscation of assets of corrupt officers in the Benami Transactions (Prohibition) Act, 1988. This will allow the state to confiscate properties into an escrowed account where no claimant shows up, and if he does, then the tax laws can be invoked to inquire into the source of income for purchase of the property.

 Second, India must enact strong anti-perjury laws to stop frivolous, false complaints under oath; this would be a necessary step to prevent witnesses and complainants from frequent retractions which one currently observes in court.

Third, reversing the onus of proof. The accused must demonstrate why illegal cash
or real estate suspected to belong to them is not theirs or face confiscation. Today, the standard of evidence followed is cumbersome. Taking cues from the US system, one must trace the money trail rather than paper trails of files of decision-making.

Lastly, posting the right man for the right job. When one outstanding officer, Bishwajit Mishra, was posted in Bellary, he disciplined Reddy’s minions and recovered dues of Rs 20 crore in 10 days flat before he was transferred out.

Justice Santosh Hegde, U V Singh, Vipin Singh and their team have done yeoman service. They have painstakingly sifted through voluminous bank records of over 40 lakh entries, reconciling millions of transactions from one benami account to the other, one benami company to the other, till it reached the eventual beneficiary, as is shown in the report.

It recounts how Reddy started the ‘zero-risk system’ whereby he would use government officers to procure permits for other mining companies, ensuring safe transport of illegally mined ore to a destination of their choice. For a payment of 40% of the prevailing global market price of iron ore or sharing an equal amount in volume, he had created a different kind of single-window system – for bribes!

Companies that initially refused were later forced to sign zero-risk contracts with Reddy. Rs 40,92,88,860 was the amount paid as ‘risk amount’, Rs 62,92,36,810 was paid for illegal iron ore trading and about Rs 2,46,62,377 was paid to 617 officials in just five years.

This apart, the report says Rs 4,79,03,917 was paid to “G J Reddy Sir” by cheque (and many times more by cash). Now, the time has come to use the fullest extent of various penal provisions of the law to recover the money. Thus, perhaps for the first time, actual value has been imputed to the extent of bribery in just one sector of the economy, that too in one state.

It also appears from the report that Yeddyurappa brought enormous transparency into bribe-taking by having his sons take the bribe by cheque into a family trust, turning a blind eye to the rape of the treasury by his colleague and his own family.

He was clearly told in writing on file by his outstanding team of officers including the chief secretary and others that denotifying land after a Section 16(2) stage of Land Acquisition Act is violative of Supreme Court judgments. Yet, he brazenly went ahead, denotified it, sold it back to the same mining company and received a ‘donation’ by cheque! Despite L K Advani’s repeated sane counsel and warnings, the misdemeanour continued for he thought the buck would never stop. But it did.

 It remains to be seen that India’s second war for independence would spread further or soon the principal culprits will be forgotten, witnesses will be purchased or will ‘voluntarily’ withdraw their statements, bail would be granted by friendly judges, back-door deals for mutual protection will be struck across party lines, some elections will be won, and the same people will be back in power. And show  must keep going on and on.

These view reflect the agreement with views presented are vies of the author.

Always Yours — As Usual — Saurabh Singh

 

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Action Against Vice Chancellors…..कुलपतियों पर कार्यवाही…… [जितना तुम्हारा सच है उतना ही कहो — फैज]

Comments Off on Action Against Vice Chancellors…..कुलपतियों पर कार्यवाही…… [जितना तुम्हारा सच है उतना ही कहो — फैज]Posted by on April 10, 2011

कुलपतियों पर कार्यवाही…… [जितना तुम्हारा सच है उतना ही कहो — फैज]

वर्तमान परिवेश में सम्भवतः ‘मर्यादा’ शब्द निरर्थक हो गया है I ऐसा प्रतीत होता है कि भारतीय गणतंत्र के नागरिकों, व्यक्तियों, समूहों, संस्थानों आदि के लिए ‘स्वतंत्रता’ शब्द के पृथक – पृथक अर्थ हैं I भारतीय संविधान में ‘अभिव्यक्ति की स्वतंत्रता’ को अत्यधिक महत्वपूर्ण मानते हुए प्रत्येक व्यक्ति को यह  मौलिक अधिकार के रूप में प्रदत्त की गयी है I इसी क्रम में समाचार तथा सूचना के श्रोतों को भारतीय प्रजातांत्रिक सरकार ने अभिव्यक्ति की स्वतंत्रता प्रदान की है I परन्तु ‘ स्वतंत्रता’ शब्द के भाव एवं अर्थ को समझने व् आत्मसात करने हेतु ‘विवेक’ का उपस्थित होना अनिवार्य है I संभवतः समाचार माध्यमों ने इस शब्द का अर्थ ‘प्रतिबन्ध रहित’ अथवा ‘अनियंत्रित’  होने के रूप में ग्रहण किया है I यह स्थिति स्वयं में विस्फोटक है I यदि इस स्वतंत्रता को इस अर्थ में लेते हुए व्यावसायिक लाभ हेतु प्रयुक्त किया जाता है, तो वह न केवल इस शब्द, अपितु सम्पूर्ण प्रजातंत्र की अवमानना होगी I यदि इसका प्रयोग एक साधारण सूचना को व्यावसायिक लाभ हेतु ज्वलंत एवं गंभीर समस्या के रूप में प्रस्तुत करने हेतु किया जाता है, तथा इससे सामाजिक, नैतिक तथा राजस्व की क्षति होने कि आशंका हो, तो यह एक दुष्कर्म होगा तथा विधि एवं न्याय संगत कदापि नहीं होगा I

शीर्षक में वर्णित विषय के सन्दर्भ में माननीय न्यायाधीश महोदय द्वारा एक प्रार्थी की याचिका पर विचार करने के उपरांत एक प्राथिमिकी दर्ज करने के आदेश दिए गए थे, न कि गोविंद बल्लभ पंत कृषि एवं प्रौद्योगिकी विश्वविद्यालय में करोड़ों के घोटाले के आरोप को सत्य करार दिया गया था I  समाचार पत्र में इस तथ्य का कहीं भी वर्णन नहीं था कि न्यायाधीश महोदय का यह आदेश किन तथ्यों, परिस्थितियों, साक्ष्यों आदि पर आधारित था I ऐसे बहुतेरे प्रकरण ‘दैनिक जागरण’ के ऊपर भी न्यायालयों में लंबित होंगे I परन्तु समाचार पत्र ने असाधारण भाषा कौशल प्रस्तुत करते हुए इस समाचार को, जो संभवतः पृष्ट तृतीय लायक भी नहीं था, को  मुख्य पृष्ठ पर इस प्रकार मुद्रित किया जैसे वास्तविकता में करोड़ों का घोटाला हो गया हो और न्यायालय ने अपना निर्णय व्यक्त कर दिया हो I

पृथक पहलू से देखने पर प्रतीत होता है कि समाचार पत्र ने स्वयं को सर्वसक्तिमान मानते हुए न्यायालय की भूमिका निभा दी तथा न्यायालय एवं न्यायाधीश महोदयों के अस्तित्व को चुनौती दे दी I किसी भी व्यक्ति, समूह, संस्था इत्यादि को इस तथ्य का आभास होना आवश्यक है कि, वह जितना शक्तिशाली होता जाता है, समाज की उससे उसके मर्यादित होने की अपेक्षाएं उतनी ही बढती जाती है, तथा स्वयं उसकी जिम्मेदारी भी बढती जाती है I

इस प्रकार एक साधारण सूचना को असाधारण रूप से प्रस्तुत कर, समाचार पत्र ने केवल कुछ व्यक्तियों की छवि को ही मलीन नहीं किया, अपितु गोविन्द बल्लभ पन्त कृषि एवं प्रोद्योगिक विश्व विद्यालय, जो अपनी उपलब्धियों के लिए विश्व विख्यात है, तथा इस स्थान को प्राप्त करने में अपना योगदान प्रदान करने वाले सभी शिक्षकों, शोध शास्त्रीयों, तथा कृषि की नयी विधियों तथा तकनीकियों के कृषकों में प्रचार – प्रसार को अपना लक्ष्य मानाने वाले सभी व्यक्तियों की अवमानना की है I

इस मान हानि को व्यावसायिक मुद्रा के माध्यम में व्यक्त कर पाना संभव नहीं है, परन्तु आशा है कि समाचार पत्र को कुछ सौ भारतीय मुद्राओं का लाभ अवश्य अर्जित हो गया होगा I संभावना प्रबल है कि इससे समाचार पत्र समूह को सीमित राजनीतिक तथा परोक्ष (प्रचार मुद्रा से आय)  आर्थिक लाभ अर्जित हुआ हो I वैसे वर्तमान में समाचार माध्यम समाज को दिशा देने के स्थान पर समाज का मनोरंजन करने के स्रोत बन गए हैं I

अगले मनोरंजक अंक की प्रतीक्षा में ….. एक समाचार पाठक

संपर्क स्रोत

नाम : सौरभ सिंह

इ मेल : saurabhsingh@consultant.com; saurabh@aavesh.org

 

Always Yours — As Usual — Saurabh Singh

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GOVERNMENT & ADMINISTRATION BOTH ARE HAND IN GLOVES WITH THEIR SINISTER OBJECTIVE IN PROMOTING SLUMS

Comments Off on GOVERNMENT & ADMINISTRATION BOTH ARE HAND IN GLOVES WITH THEIR SINISTER OBJECTIVE IN PROMOTING SLUMSPosted by on February 8, 2011

The evictions that were done for the beautification of Delhi Prior to Common Wealth Games have had a lasting impact on people’s lives, who were there occupying the place as slums and living there for a good number of years.

The blogger is not supporter of Slums, but if they have cropped up, then  that a very first lapse of Government in meeting its developmental agenda on one hand, and people who are provided duty of taking care of the issue of encroachment of such nature.

The blogger wants to learn that have the jobs, funds, pensions and other benefits that were being provided to such employees have ceased to exist or government wants a bigger proof of their inefficiency.

On the other had if something is illegal, under what laws the legalized electricity and water connections, ration cards, voter identity cards and an identity card were provided to inhabitants there.

IT CAN BE VERY SAFELY CONCLUDED THAT GOVERNMENTS AND ADMINISTRATION BOTH ARE HAND IN GLOVES WITH THEIR SINISTER OBJECTIVE & ARE PROMOTING SLUMS TO CROP UP AT THE PLACES WHERE PRICES OF LAND ARE EXPECTED TO ESCALATE OR CAN GET ANY OF THREE FACTORS AS MENTIONED AHEAD TO ENJOY; THE FACTORS BEING MONEY, LAND, & SEX.

 

“Gyarah din ke khel ke liye woh aaye,dhoom mahcaye aur humein phas ke chale gaye,” (They came for the games for 11 days, had their fun and left, leving us trapped in the middle of nowhere). 26-year-old Zora is angry as she says this. She is one of the estimated 200,000 people who were forcefully evicted from slums in the National Capital Region as a part of beautifying the capital in preparation for the Commonwealth Games 2010.


Zora, who is married and stays at her in-laws house, keeps coming back to what once used to be her paternal house in Indira Gandhi Camp II in Sewa Nagar in South Delhi, for she does not have parents, but has two younger sisters and a brother. Her two sisters live in a plastic tent, which is often targetted by miscreants at night. “Each night I go back home after visiting my sisters, I go with a fear. I kiss them on their forehead daily, not knowing what awaits them in the night. They have a plastic sheet as a door and it is well known in the area that there are two women in the tent, with just a 11-year-old boy for protection,” Zora said.

 

The slum, which has been housing migrants from Madhya Pradesh for the last twenty years, was razed, without any notice in January 2009. The slum cluster consisted of approximately 300 homes, with legal water supply and electricity connections.

 


“We were granted ration cards, voter identity cards and an identity card, which makes us eligible for rehabilitation. When Sheila ji (Delhi CM Sheila Dikshit) came to our basti asking for votes, she had assured us that our colony would be legalized. Instead, it was razed. I was cooking food when they came with the bulldozers. They did not even give me the time to collect valuables or even identity cards from my jhuggi,” says 35-year-old Kamla, a single mother, who has two children.


“And all this for what? That parking lot remains empty today. There are no events in those stadiums today. The foreigners have gone,” chips in Anoop, a resident of JJ Valmiki camp near Thyagaraj stadium.

The men and women were speaking at the launch of a report titled “Forced evictions and Commonwealth Games” prepared by NGO Housing and Land Rights network. The HLRN had undertaken a fact finding mission across 19 sites in Delhi, where the government forcefully evicted colonies while preparing the capital for Commonwealth Games.

“Basic human rights have been violated during these evictions. Most of the evictions happened during extreme weather conditions, during festivals or prior to school examinations. Atleast three instances of deaths and several other cases of injuries have been reported during these evictions. The affected families have not been compensated or rehabilitated, forcing them to continue a life which lacks security and violates the basic right to live with dignity. The most alarming violation is the violation of human rights of women. Young women are vulnerable to sexual abuse and violence resulting from exposure to insecure and inadequate living conditions,” says Shivani Chaudhry, associate director of HLRN.

In addition to women facing problems like harassment, lack of security and lack of space for personal hygiene, another direct consequence of a mass scale eviction like the one that took place in Delhi since 2004, was violation of rights of children.


Many children were forced to drop out of schools, as atleast three schools Deepshika Primary School (sector 52, Gurgaon), Pragati Wheel School (Yamuna  Banks) and Viklang Basti Informal school were razed for preparations. Many of these children were forced to take up jobs to supplement family incomes.

Sher Singh, who was in class VI of the privately-run Pragati Wheel School on the Yamuna Banks (opposite Commonwealth Games Village), recounts how the government bulldozers razed the school while they were inside studying.

“They came and asked all of us to leave. We pleaded with them not to do it, but they told us they had to do it for security reasons. Since then, I have not been able to get admission in any school,” says Sher Singh.


Raman Khanna, who runs the school, said, “We reopened the school last month. I am running a school with no roof. I have to, as the families of the boys and girls who used to study there, requested me repeatedly to. As long as the rainy season does not start, it will be okay, I think. There were about 180 students with us before evictions and now we have about 90. I am running the school literally by paying a daily bribe to beat policemen.”


Former Chief Justice of the Delhi High Court, Justice AP Shah, who released the report, told rediff.com, “In 2009, a night shelter had been razed. I had initiated a suo moto case against the MCD regarding the demolition of the night shelter and ordered the MCD immediately to restore the Pusa Roundabout night shelter. Till date this order has not been followed. The government hid behind a technicality, as they so often do. In addition, not even a single notice has been sent to any of the officials connected with such mass scale demolitions. And I am also surprised that the National Human Rights Commission has been silent on the issue for so long.”

On suggestions given by Justice Shah, the HLRN has decided to submit the report to the NHRC and file a PIL in the Delhi High Court.

Miloon Kothari, the executive director of HLRN said, “We have enough evidence. We will also submit the report to the UN as well. If there is international pressure, the government will budge. The tragic violations of basic human rights should not go unpunished like this.”

 

Always Yours — As Usual —- Saurabh Singh

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New World Order Imminent!- Anyone For A Game Of Ping Pong?

Comments Off on New World Order Imminent!- Anyone For A Game Of Ping Pong?Posted by on January 23, 2011

This vedio has been uploaded for my learned audiences, fans, students and scholars and rest others, who wish to understand issue of New World Order. I would top up the same by a commentry on Asian Environment Soon. Hope you find some value in it.Always Your—– As Usual — Saurabh Singh

Vodpod videos no longer available.

 

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IN GUJARAT, E-LITERATE PAANWALA GOOGLES NREGS, STUMBLES ON RS 1-CRORE SCAM

1 CommentPosted by on November 16, 2010

IN GUJARAT, E-LITERATE PAANWALA GOOGLES NREGS, STUMBLES ON RS 1-CRORE SCAM

A newly e-literate village paanwala’s obsession with Google has blown the lid off a unique NREGS scam in Porbandar. The motley bunch of beneficiaries include affluent NRIs, doctors, government officials, teachers and well-off farmers — all shown as unemployed village labourers holding NREGS job cards. So far, the money siphoned off comes to nearly Rs 1 crore.

On paper, there are 963 NREGS job cardholders at Kotda village in Kutiyana taluka of Porbandar district. Records show they have been paid over Rs 95 lakh for their ‘labour’ over the past three years. In reality though, none of them have ever dug wells or built roads in their lives or actually received any money for the same under NREGS or otherwise.

The scam came to light after Aslam Khokhar (37), a Class X dropout and a paan shop owner in Kutiyana learnt how to use computers and searched NREGS on Google. “I was thrilled to find every detail of NREGS work in our area on the website. But I then came across the job card of a friend, who is a government employee.

IN GUJARAT, E-LITERATE PAANWALA GOOGLES NREGS, STUMBLES ON RS 1-CRORE SCAM

I searched and found there are doctors, teachers and NRIs I personally know in the village, listed as ‘labourers’ on the site,” said Khokar.

Veja Modedara, an independent councillor at Kutiyana taluka panchayat, and Congress worker like Bhanukant Odedara soon joined hands with Khokhar. The trio conducted door-to-door meetings with villagers named in the website and found they had neither worked on any NREGS site nor received any wages.

Several like Bharat Ganga (23), who has been to Muscat for the past three years, were shocked to learn that they were named as NREGS employees on record and have been even paid for their work. “How can this be? I moved out of India three years ago,” Ganga told The Indian Express.

Varu Karsan Uka (38), an official with the Pashcim Gujarat Vij Company Limited for 15 years also holds the job card number GJ-21-005-030-001/726. Even his wife has been also named as a card holding labourer. According to the records, the couple had built roads and dug wells for 60 days and received Rs 6,000 for their work. “How can I possibly get an NREGS job card when I am a state government official ?” said Uka.

Dr Dayaram Babhania (58), a well-known physician in Kutiyana too holds a job card (number GJ-21-005-030-001/526), though he admits never to have lifted a pickaxe in his entire life.

Other like him on the list are Range Forest Officer Jesa Odedara, Forest Guard Arshi Bhattu, Gujarat State Road Transport Corporation (GSRTC) employees Meru Odedara and Arjan Odedara, teacher Leela Dasa, Ex-serviceman Kunti Rama and NRIs Haja Modha, who have long left the village and settled in Israel. On paper, all are ‘labourers’ and many have been paid too.

Kutiyana Sub-Inspector I Damor said the police probe will take a while since details of all the 963 accounts need to be verified.

Kutiyana Taluka Development Officer J Gamit said, “Preliminary investigation by the department has revealed that at least 73 cardholders are government employees, professionals or NRIs.”

District Development Officer K D Bhatt said: “We will begin a door-to-door survey to find the exact scale of the scam.”

Always Yours ————–  As Usual——————  Saurabh Singh

Source: http://in.news.yahoo.com/48/20101115/804/tnl-in-gujarat-e-literate-paanwala-googl.html?printer=1:::: Hiral DaveMon, Nov 15 06:09 AM

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Protected: Sometimes the Reason Behind an Individual Misguiding the Country Becomes Impenetrable to Comprehend as Concerns to Motive

Comments Off on Protected: Sometimes the Reason Behind an Individual Misguiding the Country Becomes Impenetrable to Comprehend as Concerns to MotivePosted by on April 20, 2010

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War amongst two Organs of same Body: Did Somebody Say Cannibalization: Is it Suicidal?

Comments Off on War amongst two Organs of same Body: Did Somebody Say Cannibalization: Is it Suicidal?Posted by on April 11, 2010

Market regulator SEBI has barred 14 private life insurance companies from selling unit-linked insurance plans without its approval, giving a fresh twist to the turf war between SEBI and insurance watchdog IRDA.

“We expect some companies to move the court” said the CEO of a life company. “It is unfortunate that this dispute has been allowed to reach this stage. It is time for the finance ministry to intervene” he added.

In an order signed by Prashant Sharn, wholetime director, SEBI, said, “I hereby direct the entities mentioned in this order not to issue any offer document, advertisement, brochure soliciting money from investors or raise money from investors by way of new and/or additional subscription for any product (including ULIPSs) having an investment component in the nature of mutual funds, till they obtain the requisite certificate of registration from SEBI.”

The 14 companies mentioned in this order include Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.

A few months back, SEBI had questioned individual life companies why they were selling investment products without its approval. Companies had responded individually that insurance laws permit them to offer an investment component within a life insurance policy. They also said that they were regulated by SEBI who had cleared all these products. The life companies were supported by the market regulator, who reiterated the stand taken by life companies.

In its final order SEBI said, “I find that the entities by their own admission have stated that there are two components of ULIPSs – an insurance component where the risk on the life insurance portion vests with the insurer and the investment component where the risk lies with the investor. This establishes conclusively that ULIPSs are a combination product and the investment component need to be registered with and regulated by SEBI”

SEBI’s order has implications not only for the life insurance companies but also for their promoters who have sunk in over Rs 26,000 crore in the form paid up capital. According to analyst reports, a significant portion of the value of various companies including, ICICI Bank, Aditya Birla Nuvo, SBI Life and Bajaj Fin serve. Most of the business written by these companies is through ULIPSs. If these companies are barred from selling ULIPSs, their valuations are likely to be hit.

Atul Surana , Certified Financial Planner and MD of Catalyst Financial Planning, says, “Anybody will understand one clear partial stand of SEBI which has not included LIC’s name in the list of life insurance companies selling ULIPSs. Secondly, this sounds much like a war between IRDA and SEBI who are bent on proving their authorities. These two regulators could have sorted out the issue on regulatory process first and then issued the order!”

So far as the order’s negative implications are concerned, experts say that while they broadly agree with the concerns of the regulator, it is also important to look at some possible negative implications of this move.

For instance, this process of another regulatory approval might take away the sheen from these products. Insurance companies may not be inclined.  The Securities and Exchange Board of India’s latest order on ULIPSs is expected to have far-reaching implications for the concerned life insurance companies as well as investors. SEBI has issued a directive to all private life insurance companies not to issue any offer document or advertisement soliciting money from investors for a ULIPS or any product having an investment part in the nature of mutual funds, till they approve of the same.

This directive is the latest in a series of initiatives taken by the market regulator to put an end to all unfair market practices and make the process of investments simple, fair and cost efficient for an investor. While the immediate fallout will be negative for all the 14 private life insurance companies as ULIPSs form a major part of the new business written by these companies in the recent past, yet some financial experts feel that this is a welcome step as it puts an end to the unfair practice of pushing life insurance policies as investment products to gullible investors.

“In the current market practice investors end up paying very high charges for the investment part of these policies and are usually not aware of the expenses they are paying. This is because unlike a normal share or mutual fund investment there are usually a myriad of charges in a ULIPS product hidden behind numerous provisions and clauses which are sometimes not easy to comprehend even by insurance professionals,” says Ashish Kapur, CEO, Invest Shoppe India Ltd, adding, “hence common investors have very little chance of ever getting an accurate picture of the costs they are incurring on these insurance and investment combination products.”

Still all is not well with the SEBI order as it is believed to have some partiality besides having some negative implications to offer these products if the regulations are very tough and costly to comply with.

FRIENDLY FIRE: EXPECTED NUMBER OF CASUALTIES

SEBI’s order asking 14 insurance companies to stop selling unit-linked insurance plans has turned into full-fledged regulatory battle with the Insurance Regulatory and Development Authority issuing its own order directing the 14 companies to continue selling ULIPSs.

“After due consultation with the members of the consultative committee all the 14 insurance companies which are mentioned in the order of SEBI are directed to note that notwithstanding the said order of the SEBI, they shall continue to carry out insurance business as usual including offering, marketing and servicing ULIPSs in accordance with the Insurance Act 1938” IRDA said in a late evening order on Saturday signed by chairman J Harinarayan.

In the order IRDA observed that SEBI’s order would upset financial stability, jeorpardise policy holders interest and was prejudicial to the interest of insurers. The 14 companies mentioned in this order include; Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.

“The IRDA Act `99 is specifically enacted to provide for an authority to protect the interests of holders of insurance policies, to regulate, promote and ensure the orderly growth of the insurance industry” IRDA said. The insurance industry was greatly relieved by IRDA’s order. “It is now between the regulators who have to settle this among themselves” said a senior industry official.

SEBI’s order has more far reaching implications than a press release or a circular. Since the order has been issued under Section 34(i) (a) and (b) of the insurance Act. IRDA has said that in the year `08-09 ULIPS policies involving a total premium of Rs 90,645 cr were in force. In fiscal `09-10 upto February 16.7 lakh policies have been sold with a premium of Rs 44,611crores. “It is also observed that the 14 insurance companies have an equity capital of Rs 16,281cr as on March 2009” IRDA said.

The insurance regulator said that observance of SEBI’s order would cause the stoppage of all renewals of insurance policies already invested by the insuring public may result in forced premature surrender of insurance policies causing substantial loss to the policyholders and to the insurers. “The effective stoppage of the sale of the products would cause a complete drying up of revenue flows to the insurance companies which could disrupt the payment of benefits on maturity, on death and on other admissible claims, putting the policyholder and the general public to irreparable financial loss. The financial position of the insurers will be seriously jeopardized thus destabilizing the market and upsetting financial stability” IRDA said.

IRDA IS FIRST TO BLOW CONCH – DIN’T YOU HEAR THE WAR CRY

SEBI’s order asking 14 insurance companies to stop selling unit-linked insurance plans has turned into full-fledged regulatory battle with the Insurance Regulatory and Development Authority issuing its own order directing the 14 companies to continue selling ULIPSs.

“After due consultation with the members of the consultative committee all the 14 insurance companies which are mentioned in the order of SEBI are directed to note that notwithstanding the said order of the SEBI, they shall continue to carry out insurance business as usual including offering, marketing and servicing ULIPSs in accordance with the Insurance Act 1938” IRDA said in a late evening order on Saturday signed by chairman J Harinarayan.

In the order IRDA observed that SEBI’s order would upset financial stability, jeorpardise policy holders interest and was prejudicial to the interest of insurers. The 14 companies mentioned in this order include; Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.


“The IRDA Act `99 is specifically enacted to provide for an authority to protect the interests of holders of insurance policies, to regulate, promote and ensure the orderly growth of the insurance industry” IRDA said. The insurance industry was greatly relieved by IRDA’s order. “It is now between the regulators who have to settle this among themselves” said a senior industry official.

SEBI’s order has more far reaching implications than a press release or a circular. Since the order has been issued under Section 34(i) (a) and (b) of the insurance Act. IRDA has said that in the year `08-09 ULIPS policies involving a total premium of Rs 90,645 cr were in force. In fiscal `09-10 up to February 16.7 lakh policies have been sold with a premium of Rs 44,611crores. “It is also observed that the 14 insurance companies have an equity capital of Rs 16,281cr as on March 2009” IRDA said.

The insurance regulator said that observance of SEBI’s order would cause the stoppage of all renewals of insurance policies already invested by the insuring public may result in forced premature surrender of insurance policies causing substantial loss to the policyholders and to the insurers. “The effective stoppage of the sale of the products would cause a complete drying up of revenue flows to the insurance companies which could disrupt the payment of benefits on maturity, on death and on other admissible claims, putting the policyholder and the general public to irreparable financial loss. The financial position of the insurers will be seriously jeopardized thus destabilizing the market and upsetting financial stability” IRDA said.

POLICE DECIDES TO TURN SPECTOR

The finance ministry today kept a safe distance from the ongoing row between market regulator SEBI and insurance watchdog IRDA over ULIPs, saying the two regulators have to resolve the issue.

“It’s a matter between regulators; so they have to decide,” finance secretary Ashok Chawla told when sought his comments on yesterday’s SEBI decision to ban 14 life insurers from raising any more money from the unit-linked insurance plans (ULIPs) in which a portion of the premium amount is invested in stock markets, a move opposed by the insurance regulator.

The SEBI decision was taken after the market regulator had sent notices to these companies asking them as to explain why they did not take its permission to launch these schemes.

Insurance regulator IRDA is understood to have stated in its reply that regulation of ULIPs by IRDA is well-laid down and that it does not agree with SEBI contention that insurers need a certificate of registration from the market regulator for dealing in ULIPs.

The issue was also taken up at the meeting of the inter-regulatory body, the High Level Coordination Committee (HLCC). It was decided at the meeting that the two regulators should settle the issue between themselves.

Chawla said the SEBI and IRDA have not so far been able to come to any resolution. “So, SEBI has taken a legal process. He was going to be silent spectator to see the fire power of both Regulators.

 

Always Yours   — As Usual — Saurabh Singh, India

[Thanks are expressed for too many peple]

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