Thursday, February 10, 2011

raja made 3,000 crores in bribes

this is the headline in the times of india.

manan kumar writes today in the new indian express that balwa's swan telecom minted rupees 4,370 crore, and that unitech benefited immensely by offloading 60 percent stake of its license for rupees 6,200 crore to telenor.

as far as i can understand, if a business operator gets people to invest in a company that he is running, he will offload  stake to the new investors, who then put up money so that the company can continue to be run. if the business operator projects the potential of his business well, he gets a good valuation for the stake that he divests. otherwise, the investors would buy him out.

the investor after putting in the money has to ensure that operations are commenced and that revenues are generated and a profit is made. etisalat and uninor have invested and got into the ventures which are bogged down in competition.

Etisalat DB Telecom Pvt. Ltd. is a joint venture between Etisalat and Dynamix Balwas Group.

Uninor is owned by the world’s 6th largest mobile services provider, Norway-based Telenor Group (67.25%), and India’s second largest diversified real estate major, Unitech Ltd.

so, the entrepreneur has invited investment, and might eventually one day, be bought out fully by the investors. it could be a matter of a successful profit if the venture continues to perform well. if the business does not perform well, they might not be able to sell out.

both the entities in the case, will have to repay the original amount, of around 1600 crores. if etisalat and telenor are thinking of throwing money at balwa and unitech, that money has to come from somewhere. what is the nature of the joint venture between the parties, will reveal a lot about the transactions. but, for now, no media company has come around to tell the details of the transactions to the people. they are happy using words like minted.

more than 50 % of telenor  i.s owned by the governement of norway. both companies are publicly traded and are responsible to their shareholders.

if these companies wanted to get into the telecommunications business in India, they would have known that they would be competing against established companies here. they would not have hamstrung themselves by allowing the balwas or unitech to make a killing or to be minting.

according to the times of india, unitech got a total loan of 10,000 crores of which the sbi alone disbursed rupees 8,050 crores. prashant bhushan is quoted by the newspaper as telling the court that the loans were solely on the basis of hypothecation of spectrum licenses.

it might appear that the licenses were not issued by the governement of india's telecommunications ministry but by some interloper.

the supreme court is wasting its time on the petitions of wastrels like subramanian swamy and prashant bhushan. there cannot be a thing called business, there cannot be a thing called democracy, and there cannot be a thing called commerce in this world, if one were to go by the imputations of these two characters, prashant bhushan and subramanian swamy. the whole world is a scam, that is the end result to be pronounced by the supreme court, after spending its time on these two characters. in the interim, the court seems to tell the people that it is the real-life version of the cinema superstar.

the times says the cbi tells the court that raja got a bribe for 3000 crores, about 700 million dollars. where does money come from? we are all fools, let us enjoy the reality of having been turned into fools, courtesy the cag, prashanth bhushan, and subramanian swamy.

No comments: