Tag Archives: 2G Scam

DB Realty ropes in Sr Goenka, Balwa

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Lavasa hill city, DB Realty, Shahid Balwa, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyA day after its Managing Director Vinod Goenka was arrested in the 2G spectrum scam case on Wednesday, the controversial Mumbai-based real estate company DB Realty inducted his father, K M Goenka, as a Non-Executive Director. The DB management similarly inducted Usman Balwa, father of Shahid Balwa, as a Non-Executive Director, during a company board meeting held on Thursday. Shahid stepped down as MD after his arrest in February. His elder brother, Asif, the Chief Financial Officer of DB, was also arrested last month in connection with the scam, described as the largest in India.

The two fathers will play advisory roles in the company. The company insiders maintain they have come to protect the interest of DB Realty and help us in these troubled times. Usmanbhai is 56 while the senior Goenka is over a decade older. “They come with experience, maturity and knowledge of business,” said a source requesting anonymity. Both the fathers have no stake in DB Realty. While the senior Balwa is in the hospitality business (he owns several hotels), K M Goenka founded the realty firm, Conwood, and runs a flourishing dairy business in Sharad Pawar’s hometown of Baramati. The company will also soon shortlist a candidate for a new CFO to replace Asif Balwa.

“Despite his arrest, Vinod Goenka continues as Managing Director. His arrest was unexpected. We are hopeful he will get bail,” said a senior company official. “There is a feeling of disappointment among the employees these past two days since Goenka’s arrest,” he added. “DB Realty is an independent entity and has no shareholding with the hospitality and telecom arm of the group. It is professionally run by ten functional heads including expats,” said N Shridhar, Group Director (Strategy and Finance), who joined the company four months ago. “The operational and execution of projects has not been impacted,” he added.

However, a company insider said the Goenkas and the Balwas may go their separate ways and divide their empire sometime in the future. The company officials maintain the company would not acquire more land, but instead concentrate on completing ongoing projects. “We will focus on the customer and delivery of existing projects,” they said.

Currently, DB has 12 under-construction projects in Mumbai and one in Pune totalling 20 million sq ft. The company claims to have a net worth of close to Rs 3,200 crore of which Rs 250 crore is debt. “The environment is not conducive to raise fresh loans because of the controversy and banks restricting lending to developers,” said DB officials.

Realtors in telecom scandal by default or by design

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By: Ravi Sinha

Track2Realty Exclusive

A Raja, Niira Radia, 2G Spectrum Scam, Ratan Tata, Sanjay Chandra, Unitech, PAC, Public Accounts Committee, CBI, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyThe chargesheet has been filed by the CBI against former telecom minister A Raja in the 2G spectrum scam with the leading real estate company Unitech and two others being a party to the criminal conspiracy, forgery, cheating and corruption. The question is not just about the manipulation of rules by Raja to make ineligible realty companies causing a loss of Rs.30,984 crore to the state exchequer, but if CBI sources are to be believed it was a result of a much larger game that was taking shape even before A Raja had become the telecom minister.

According to the CBI sources the seeds of greed by the realty companies and Raja’s involvement go back to his previous tenure as the minister of environment. It was then that all the realtors needed the minister’s favour for getting the environment clearance by the ministry. This unholy friendship culminated in all these companies getting the environment clearance certificate to their projects in the pipeline.

However, there were other vested interests who wanted A Raja to be the telecom minister for getting a pie of the much larger cake. After all, the telecom spectrum allocation was the next big thing and Raja was subsequently planted over there to serve the purpose. In the process the realtors who had already paid to Raja in advance for getting the environment clearance got their projects stuck up. A Raja was no more in the environment ministry to get those files cleared.

The old friendship had by then blossomed into close working relations as well. As a result, the friends in real estate community were asked to apply for the 2G spectrum which was seen as a very lucrative business. That is how the realty companies were shown the entry gate of telecom and 2007 onwards there had been a race among the realty companies to get into telecom. The genesis of one of the biggest corruption scandal was more by default than design.

DB Realty absorbed Dawood money, believes CBI

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Shahid Balwa, DB Realty, Sharad Pawar, Dawood Ibrahim, 2G Spectrum scam, Niira Radia, A Raja, CBI, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyTHE CBI interrogation of DB Realty’s MD, Shahid Balwa, in connection with the 2G spectrum scam has thrown up the possibility of the real estate magnate having links with India’s most wanted man, Dawood Ibrahim.

According to senior CBI officials, Dawood invested large sums of money in Balwa’s firm, which was used by him to finance many of his business deals. 
To keep the money flowing, Balwa is learnt to have made several trips to Dubai, Dawood’s hideout, in his private airplane. The agency is now planning to seek details of these trips from the Directorate General of Civil Aviation. Investigations have revealed that a senior politician also accompanied Balwa on many of these trips.

“We will seek details of Balwa’s frequent visits and are probing the underworld link,” said a senior CBI official, on condition of anonymity. He added that the checking systems in place for a private plane are very lenient and anybody can bribe their way out.

“All it requires is taking care of the ground staff. No one is privy to what is being brought into and taken out of the country in a private plane. Balwa may have misused this laxity.”

Balwa was arrested by the CBI on Tuesday for his alleged involvement in the 2G spectrum scam, which has also seen the arrests of former telecom minister A Raja, his former personal secretary R K Chandolia and former telecom secretary Siddharth Behura. Investigations had revealed that Swan Telecom, a company floated by Balwa, was allegedly favoured in the allocation of 2G spectrum, which caused a loss of Rs 22,000 crore to the national exchequer.

CBI sources said that the sudden, phenomenal growth of the firm led by the 37-year-old managing director in the last five years had raised several eyebrows. The CBI had also said that it was necessary for it to confront Raja and Balwa together to piece together the missing links of the scam.

ED asks Indian missions to check money trail of Unitech

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3rd of the investigative series

By: Ravi Sinha

india real estate news, real estate news india, india realty news, realty news india, kumari selja, rohtas goel, Kapil Sibal, sonia gandhi, rahul gandhi, manmohan singh, Unitech, DLF, india property news, property news india, naredco, affordable housing, government of india, ndtv.com, ndtv, zeenews, aajtak, times of india, hindustan times, indian real estate forum, indianrealestateforum.com, indianrealtynews.com, cnn-ibn, rajdeep sardesai, sagarika ghose, vinod dua, arnab goswami, barkha dutt, raghav behl, prannoy roy, vikram chandra, ravi sinha, track2media. track2realty, DDA, delhi real estate news, new delhi, K.P. Singh, Rajiv Singh, Sharad Pawar, Jairam Ramesh, CBI, DB Realty, LavasaThe Enforcement Directorate has asked the intelligence officers in different Indian Missions to check the money trail in the 2G spectrum scam. Special Director, ED has sent out communiqués to Cyprus, Mauritius, British Virgin Islands, Jersey, Isle of Man, Singapore, Dubai, and Tripoli (Libya, Norway).

The sources have specifically been asked to check the antecedents of the money coming into Unitech Wireless under the ambit of Prevention of Money Laundering Act. Documents in possession of ED indicate that Unitech through its wholly owned subsidiaries/associates/business partners situated in various countries made several interlinked financial transactions to camouflage the real beneficiaries.

What has been prelude to letters being issued to some of these tax haven is incriminating evidence. Track2Realty has learnt that Unitech Builders and Estate, Adonis Projects, Aska Properties, Hudson Properties, Nahan Properties, Unitech Infrastructure, Volga Properties have been identified as recipient companies.

The Mission in Brussels has been told to follow Cyprus based companies which are related to Unitech – Bageris, Bolemat, Boracim, Brucosa, Comegenic, Crowbel, Firisa, Nuwell, Serveia etc. Details have been asked for on the nature of business conducted by these companies, copies of their balance sheets, names of promoters/directors and other significant details.

In Mauritius, it has been established that Burley Holdings and Fastnet Holdings are related to Unitech. Similarly, the British High Commission has been asked to look into British Virgin Islands, Isle of Man and Jersey. In British Virgin Islands, Empecom Corporation has been discovered to have a link to Unitech. In Jersey, it is Unitech Global Ltd that has been identified. In the Isle of Man, Unitech Hotels, Unitech Malls and Unitech Overseas have been identified.

In Singapore, Unitech Office Fund Trustees Ptv Ltd and Telenor Asia have to be investigated. In Dubai, Unitech Ltd has been identified and in Tripoli, Unitech Ltd Libya branch has been identified. In Norway, details about Telenor Mobile Communications have been asked for. In Mauritius, details about Idea Cellular related entities – TMI Mauritius and TMI India have been sought.

FM asks monitoring on realty companies into housing scam

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2nd of the investigative series

By:Ravi Sinha

RBI, Reserve Bank of India, CREDAI, Loan for bribe scam, LIC housing scam, Track2Realty, Track2Media, india real estate news, real estate news india, india realty news, realty news india, kumari selja, rohtas goel, Kapil Sibal, sonia gandhi, rahul gandhi, manmohan singh, Unitech, india property news, property news india, naredco, affordable housing, government of india, ndtv.com, ndtv, zeenews, aajtak, times of india, hindustan times, indian real estate forum, indianrealestateforum.com, indianrealtynews.com, cnn-ibn, rajdeep sardesai, sagarika ghose, vinod dua, arnab goswami, barkha dutt, raghav behl, prannoy roy, vikram chandra, ravi sinha, track2media. track2realty, DDA, delhi real estate news, new delhi, Sharad Pawar, Jairam Ramesh, CBI, DB Realty, LavasaIn the immediate aftermath of the bribes for loan scam involving LIC Housing Finance, the Finance minister Pranab Mukherjee in conjunction with Dept of Financial Services asked for a complete monitoring of all the companies mentioned in the CBI case filed. All public sector banks, financial institutions and state owned insurance companies have been asked to examine their exposure to the 21 companies named by CBI in the housing loan scam, and give a subsequent compliance report.

CBI has named Mantri Realty, Sigrun, Entertainment World, Indore City Treasure, Lavasa, Ashapura Minechem, BGR Energy, OPG Group, Krishna Group, Suzlon, Emaar MGF, MBDB, Gold Souk Project, JP Hydro, Adani Group, JSW Power, Religare, DB Realty, Pantaloons, Adalite and Mtech. Lavasa is already under environment ministry fire, while DB Realty is one of the beneficiaries of the 2G licensing scam and Emaar MGF built the CWG Village.

Finance Minister has instructed PSBs, DFIs and insurance companies to take appropriate action against the companies and individuals as per established procedure. All of them have been instructed by Dept of Financial Services secretary R Gopalan to examine their exposure to these errant companies.

They have also been told to undertake an independent valuation on the asset quality, documentation and compliance of their prudential requirements in all these companies. Instructions are also in place for fresh assessment of non-performing assets and strengthening and monitoring of the processes to identify incipient sickness.

All loans should follow procedures and diligence mechanism. Chairmen of PSB, FIs and insurance companies have been asked to give their compliance reports, as also rapid assessment on the portfolios mentioned in the CBI report.

CBI, Radia and reality of Unitech

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1st of a series of expose on 2G scam

Track2Realty, Track2Media, Ravi Sinha, Niira Radia, A Raja, 2G spectrum scam, 2g scam, telecom scam, telenor, unitech, India realty news, realty news india, india real estate news, real estate news india, india property news, property news india,

By: Ravi Sinha

The CBI investigation into the 2G spectrum scam is learnt to have zeroed on how lobbyist Nira Radia and former telecom minister A. Raja circumvented all the norms to benefit the real estate company Unitech. The loss caused to the public exchequer and corresponding gain to the realty company is not confined to mere arbitrary granting of second-generation mobile telephony licenses. The close link of Raja and Radia into the real estate company actually led to the debt ridden company getting fresh funds with license mortgaged and the government standing as a guarantor.

The Supreme Court asking the CBI to look into all bank loans given to telecom licensees has brought to the investigation the fact that the company mortgaged the same license to raise funds. The government stood as a guarantor to ensure loans worth Rs 2000-2500 crore by this licensee in May this year. Telecom bureaucrat who signed one of these agreements has already been questioned by the CBI. The loans were secured through tripartite agreement between the company, a consortium of banks and the government. The bureaucrat, a former official of the access services wing of the telecom department signed the tripartite loan agreement on behalf of the government.

The CBI’s suspicion that A. Raja and Nira Radia benefitted from Unitech by awarding 2G spectrum and license is based on the seized documents and also from its questioning of Radia, Raja and several bureaucrats. The documents clearly suggest as to how the debt ridden Unitech mortgaged its telecom license to get the funds needed to start operations and the government stood guarantee to its loans with a consortium of banks. A copy of this tripartite loan agreement is in possession of Track2Realty.

Unitech is incorporated as a company into real estate business and had no experience or expertise in the telecom sector till it got the license. Unitech was awarded telecom license and 2G spectrum in 2008 as a real estate firm, but changed its name a few months after it got the license. Though Radia’s PR firm Vaishnavi Corporate Communications maintains that it has serviced no client in telecom other than Tata Tele Services, the firm stands out as the official PR agency for the Unitech’s core business into real estate.