IPL bidder's Jan 31 board resolution contradicts Pawar & Sule's claims
http://timesofindia.indiatimes.com/articleshow/6016283.cmsNEW DELHI: Agriculture minister Sharad Pawar and his daughter Supriya Sule's defence that City Corporation's participation in the bid for the Pune franchise of IPL in March was in the personal capacity of its MD Aniruddha Deshpande will not stand scrutiny of law, legal experts said on Friday.
As Deshpande conceded that the bid document was bought and submitted in the name of the company, the law would not allow the Pune-based construction firm to cling to a board resolution saying it allowed the managing director to do so only in his personal capacity, they said.
"The company is a legal entity. Once it buys the bid document and submits it in its name, there is no escaping the liability and the question of personal capacity bidding in the name of City Corp does not arise. The personal capacity defence is untenable in law,'' senior advocate Mukul Rohatgi told TOI.
Leading corporate lawyer Diljeet Titus said a company, through a board resolution, could permit its MD to bid in his personal capacity. ''But once the firm buys the bid document in its own name, then its involvement cannot be camouflaged by citing personal capacity of the MD,'' he said.
Moreover, Section 2(26) of the Companies Act clearly specifies that a managing director of a company shall
''exercise his powers subject to the superintendence, control and direction of its board of directors''. In light of this, both Rohatgi and Titus were of the view that Deshpande's statement — ''The tender was bought in the name of City Corp. The board did not agree to the bid but permitted me to use the company's name for bidding purposes'' — hinted at an arrangement between the company and the MD.
Titus said, ''If there was an arrangement between the company and its managing director to the effect that the company would lend its name for the MD to bid in a personal capacity, then too the involvement of both the firm and its managing director would be assumed from such an understanding.'' While Deshpande said that he was permitted by the board of directors to bid in his personal capacity, Sule said, ''It is in his personal capacity that Deshpande bid. It had nothing to do with the company. The company board had passed a resolution saying it would have nothing to do with the bid.''
Other experts agreed with Rohatgi and Titus and said City Corp needs to answer some questions:
* Who paid for buying the bid document? — If the answer is City Corp, then the company cannot now wriggle out of the muddle by citing personal capacity of the MD, they said.
* Did the MD return the bid money to the company immediately after March 22 after being unsuccessful in getting the Pune franchise? Or did he return it to the company after the controversy broke out? Why did the board of directors not protest against Deshpande misuing the company name for personal benefit? — This would require a thorough examination, they said.
* If some discrepancies were detected in the bid documents warranting action under Company Law, could City Corp be allowed to say that though the document was bought in its name, it was only the MD who was liable in his personal capacity? — Even if it is in personal capacity of MD, as City Corp bought the bid document, both the firm and its MD would be jointly liable, experts said.
* Did the bid document specify that it was being submitted in Deshpande's personal capacity? — If it was not specified that Deshpande bid in his personal capacity, then the company alone would be liable, whatever be the statements made now on behalf of the owners of City Corp, they said.
* As the bid document said nothing about personal capacity of the MD, was the board resolution ante-dated? — Ante-dating of a board resolution is a serious offence under the Companies Act and IPC. This can only be found out by a probe either by the Registrar of Companies, SEBI or the serious frauds investigation office (SFIO) in the corporate affairs ministry, they said.
Section 628 of the Companies Act 1956 provides for up to two years imprisonment for making any false statement in any returns, report, certificate, balancesheet, prospectus, statements or other documents relating to a company. A false statement would also attract provisions of the IPC — Section 463 (forgery), 464 (making a false document and 477A (falsification of accounts).
The IPL mess
More trouble for Pawar over IPL bid
http://www.cricinfo.com/india/content/current/story/462186.htmlNagraj Gollapudi
June 6, 2010
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Related Links News : BCCI president gives clean chit to Amin News : Chirayu Amin part of failed Pune franchise bid News : No involvement in any IPL bid - Pawar In Focus: The IPL Mess Players/Officials: Sharad Pawar Teams: India |
The former BCCI president Sharad Pawar and his family's claims of not being involved in a bid for a Pune franchise in the IPL has been contradicted by information in a document describing the minutes of a board meeting of a company in which Pawar has a stake. The document reveals that on January 31, the Pune-based City Corporation had given Aniruddh Deshpande, its managing director, the permission to make a bid on "behalf" of the company during the auction in March.
This calls into question Pawar's earlier stance that Deshpande had made the bid entirely in his individual capacity and the board had given him permission to do so at the board's meeting on March 17. Pawar, his wife Pratibha Pawar and his daughter Supriya Sule (a Member of Parliament) own a 16.22% stake in City Corporation. Pawar had said the reason he did not reveal his family's stake in the company was because "there was no necessity felt to do so". Sule had said that at the March 17 meeting it was resolved that the company will have nothing to do with the bid.
But the minutes of the January 31 meeting, a copy of which is available with Cricinfo, states that Deshpande was asked to go ahead with the bid in the company's name. According to the excerpts of the minutes of the January meeting the board "resolved that the company do and hereby authorize Mr Aniruddha Deshpande to represent the company in participating, bidding, winning & operating IPL franchisee from Pune in IPL-4 & onwards and to sign any agreement and other documents on behalf of the company in relation to participating in the bidding process of the IPL."
In his defence, Deshpande told the Times of India that the January 31 meeting was to "enable" him to exercise his bid in his personal capacity.
Sule, meanwhile, continued to maintain that neither she nor her father had done anything wrong. "We don't know anything about this because Mr Pawar and I don't sit on the company's Board. I don't know why a mountain is being made out of a molehill," she said. "How would we know? Have we signed any resolution? Do we sit on the Board? So how can we be held responsible for that?"
Sule insisted that Deshpande was going to find a new set of shareholders if he had won the bid. "When Mr Deshpande submitted the bid to the BCCI, he had given a note that the shareholders may change as there will be a new consortium made if they win the bid and they lost the bid."
The BCCI is clearly unhappy with the situation. Reacting to Lalit Modi's allegation on Friday that interim IPL chairman Chirayu Amin, too, was involved in the City Corporation bid, Shashank Manohar, the Indian board president, released a public statement, asking why Modi had not informed the board that Deshpande was bidding on his own.
"Mr Modi has also made a statement that Mr Aniruddha Deshpande, MD City Corporation Ltd, had informed him that though the bid was submitted on behalf of City Corporation Ltd, it was in fact a personal bid on behalf of himself," Manohar wrote. "Mr Modi, who claims to be above board in all matters, did not think this very cogent and important piece of information should be shared with Governing Council Members /Officials."
However, through his vehement attack against Modi, Manohar has also indirectly contradicted Pawar's claim that the bid had not been made in City Corporation's name. It is also understood that since Pawar is not part of any of the IPL franchises, he is clear of any wrongdoing as far as the BCCI are concerned.
Pawar is a street-smart politician who has lost only one election in his entire life, but he will need all of his resourcefulness to get out of the embarrassing situation surrounding his links with a failed IPL bid.
Is Pawar losing grip over Indian cricket officialdom?
NEW DELHI: It is measure of the extent to which NCP chief Sharad Pawar's sway over the Indian cricket establishment has weakened that his one-time protege, BCCI president Shashank Manohar, on Saturday lashed out at suspended IPL commissioner Lalit Modi unmindful of the collateral damage he was doing to Pawar.
In his bid to nail what he said were Modi's "ridiculous allegations" against the current IPL chief Chirayu Amin, the BCCI president virtually ended up demolishing Pawar's claim that the bid made by City Corporation was a personal initiative of its managing director, Anirudh Deshpande.
Manohar's statement is likely to be a cue for others in the faction-ridden BCCI, and can encourage those who have been uncomfortable with Pawar's continued support for Modi to speak out.
On Modi's claim, Manohar said that the former IPL boss had himself asked the bidders to contact Chirayu Amin. He said the message to Amin was sent through Maharashtra Cricket Association president Ajay Shirke. On his part, Amin not only said he would join the consortium only if it won but also informed the Board about his intention.
Manohar said in a media release, "The letter (from Amin) makes it clear that it was proposal with a pre-condition that Amin would seek a formal sanction only in case the bid succeeds."
Manohar's said that if Anirudh Deshpande was indeed acting in his personal capacity, "the bid could have been rejected at the threshold if it had been from (Deshpande) as an individual as it did not carry the necessary information about the bidder."
Chirayu Amin in his letter to the BCCI on March 17 had said, ''I am writing to inform you that a group of businessmen have approached me to participate in a franchise bid under the umbrella of 'City Corporation Ltd Pune' and I have given my consent to invest upto 10%. Please note that if they succeed, I will communicate to you for formal sanction of BCCI before investing in the venture."
--
Trouble-prone NCP gives UPA a headache
Just when the Left was battling its demons in West Bengal and BJP licking its wounds in Jharkhand, the revelation about the Pawar family having a stake in a corporate bid for an IPL team has given a strong handle to the opposition to target the ruling coalition.
It comes immediately after UPA stood cornered over the expose that civil aviation minister Praful Patel's daughter had leaked inside information to interested bidders in IPL auction. Coming bang in the middle of the budget session of Parliament, the evidence-backed-allegations had the government scurrying for cover.
The coalition rules did not allow the UPA brass to give a Shashi Tharoor treatment to the ally, leading to vociferous demands from the opposition.
To Congress insiders, the perpetually problematic NCP is a rewind to UPA-1 when Lalu Prasad's RJD did not let the government function with moral authority as court cases pertaining to corruption provided fodder to BJP et al for five long years. As in the case of RJD, NCP too is beyond punitive action or political control because of coalition compulsions.
The feeling in the ruling camp is that but for NCP, the UPA-2 would not have appeared as listless. The price rise and the perception that agriculture minister was talking up prices, the mess in the civil aviation sector and the reports of partronge, the deep involvement of NCP brass in IPL mess have been sources of embarrassment for the Congress-led coalition.
While the limitations of running a coalition regime are understood, many feel that the 9-MP NCP is extracting a disproportionate share of `concessions' when a much larger outfit like the 18-MP DMK is sheepish about its enfant terrible telecommunications minister A Raja.
The brazenness of the breakaway outfit has also caused consternation in the Congress. While issues have tumbled out of the closet, NCP leaders could have been less aggressive in "there is nothing wrong in it" defence to soften the reaction. Instead, the stonewalling in these controversies has created a negative impression among people while also stirring the opposition in attack mode.
http://timesofindia.indiatimes.com/india/Pawar-family-hold-16-in-IPL-bidder/articleshow/6009317.cmsPalash Biswas
I-T department requests finance ministry to probe NRI funds in IPL
The step is part of the ongoing investigations into investment of foreign funds in the IPL.
The investigating unit in Mumbai has written to the Foreign Tax Division in the Central Board of Direct Taxes (CBDT) to obtain information about "foreign entities in IPL teams" after its probe into the cash-rich tournament found investments by "non-residents" especially in teams like Kings XI Punjab, Rajasthan Royals and Royal Challengers Bangalore.
The Ministry has also written to the Reserve Bank of India (RBI) seeking information on the foreign investments brought by all the IPL franchises and have asked the Enforcement Directorate to check violations under the Foreign Exchange Management Act (FEMA).
"The bid documents reveal huge funding by NRIs in various IPL franchises. But the documents do not reflect the entire financial details of these individuals," a top I-T officer said.
In order to establish the amount of tax evasion, if any, the department has approached the concerned CBDT wing to execute Direct Taxation Avoidance Agreements (DTAA) with countries such as Switzerland, Germany and Mauritius to facilitate exchange information, the officer added.
The Foreign Tax Division in the Finance Ministry looks into the tax liabilities and evasion by non-residents and foreigners in respect of both the countries under the agreements.
The overseas remittances of certain IPL franchises are also under probe, I-T sources said.
The Income Tax department had collected documents related to bidding, payment of taxes and various other financial details during its countrywide survey of various IPL franchises, with the first such operation being conducted on April 15 at the BCCI and IPL premises, including the office of suspended IPL Commissioner Lalit Modi.
The I-T department in Mumbai has created a special cell of officers to monitor the IPL as the metropolis hosts the IPL marketing and advertising offices.
Almost eight investigation wings of the department in various cities like Chandigarh, Kochi, Jaipur and New Delhi are also probing the taxation aspects of the IPL transactions.
'Pawar, Sule can't escape by blaming MD'
As Deshpande conceded that the bid document was bought and submitted in the name of the company, the law would not allow the Pune-based construction firm to cling to a board resolution saying it allowed the managing director to do so only in his personal capacity, they said.
"The company is a legal entity. Once it buys the bid document and submits it in its name, there is no escaping the liability and the question of personal capacity bidding in the name of City Corp does not arise. The personal capacity defence is untenable in law,'' senior advocate Mukul Rohatgi told TOI.
Leading corporate lawyer Diljeet Titus said a company, through a board resolution, could permit its MD to bid in his personal capacity. ''But once the firm buys the bid document in its own name, then its involvement cannot be camouflaged by citing personal capacity of the MD,'' he said.
Moreover, Section 2(26) of the Companies Act clearly specifies that a managing director of a company shall
''exercise his powers subject to the superintendence, control and direction of its board of directors''. In light of this, both Rohatgi and Titus were of the view that Deshpande's statement — ''The tender was bought in the name of City Corp. The board did not agree to the bid but permitted me to use the company's name for bidding purposes'' — hinted at an arrangement between the company and the MD.
Titus said, ''If there was an arrangement between the company and its managing director to the effect that the company would lend its name for the MD to bid in a personal capacity, then too the involvement of both the firm and its managing director would be assumed from such an understanding.'' While Deshpande said that he was permitted by the board of directors to bid in his personal capacity, Sule said, ''It is in his personal capacity that Deshpande bid. It had nothing to do with the company. The company board had passed a resolution saying it would have nothing to do with the bid.''
Other experts agreed with Rohatgi and Titus and said City Corp needs to answer some questions:
* Who paid for buying the bid document? — If the answer is City Corp, then the company cannot now wriggle out of the muddle by citing personal capacity of the MD, they said.
* Did the MD return the bid money to the company immediately after March 22 after being unsuccessful in getting the Pune franchise? Or did he return it to the company after the controversy broke out? Why did the board of directors not protest against Deshpande misuing the company name for personal benefit? — This would require a thorough examination, they said.
* If some discrepancies were detected in the bid documents warranting action under Company Law, could City Corp be allowed to say that though the document was bought in its name, it was only the MD who was liable in his personal capacity? — Even if it is in personal capacity of MD, as City Corp bought the bid document, both the firm and its MD would be jointly liable, experts said.
* Did the bid document specify that it was being submitted in Deshpande's personal capacity? — If it was not specified that Deshpande bid in his personal capacity, then the company alone would be liable, whatever be the statements made now on behalf of the owners of City Corp, they said.
* As the bid document said nothing about personal capacity of the MD, was the board resolution ante-dated? — Ante-dating of a board resolution is a serious offence under the Companies Act and IPC. This can only be found out by a probe either by the Registrar of Companies, SEBI or the serious frauds investigation office (SFIO) in the corporate affairs ministry, they said.
Section 628 of the Companies Act 1956 provides for up to two years imprisonment for making any false statement in any returns, report, certificate, balancesheet, prospectus, statements or other documents relating to a company. A false statement would also attract provisions of the IPC — Section 463 (forgery), 464 (making a false document and 477A (falsification of accounts).
http://timesofindia.indiatimes.com/india/Pawar-Sule-cant-escape-by-blaming-MD-/articleshow/6012631.cms
Manohar lashes out at Modi, says Amin was not part of bid
Blasting Modi, Manohar said it was in fact the suspended IPL Commissioner who had advised a Pune consortium to rope in Amin as an investor and the interim IPL chief agreed to invest only after the bid succeeded and he had sought the Board's permission.
Manohar also claimed that contrary to Modi's assertions, the IPL Governing Council did not know that City Corporation's Managing Director Aniruddha Deshpande bid for the Pune team in his "individual capacity".
"The truth is that it was Mr. Modi himself who sent a message to the Pune Franchisees through Mr. Ajay Shirke, President, MCA (Maharshtra Cricket Association), asking them to contact Mr. Amin and ask him to be a part of the consortium," he revealed.
Manohar said when the bidders approached Amin to join their consortium, the interim IPL chief agreed to make an investment of upto 10 per cent only if the bid was won and he got BCCI's permission.
"Mr. Amin had then given me a letter with a copy to the Hony Secretary (N Srinivasan), informing that he has been approached by the Pune franchisee.
"In his letter he clearly states that should City Corporation Ltd win the bid, he would then formally approach the Board for a sanction to invest in the consortium. The letter itself makes it very clear that it was a proposal with a pre-condition attached that Mr. Amin would seek a formal sanction only in case the bid succeeds," Manohar said.
Manohar accused Modi of trying to tarnish Amin and the Board's image.
"Mr. Modi, since yesterday is trying to malign the image of the Board and M. Chirayu Amin by making statements which are far from the truth," Manohar said.
"It is thus clear that the claim of Mr. Modi that Mr. Amin was a bidder is misleading and is only to malign the image of the Board and it Members.
"I did not react earlier when he made allegations against me and the Hony. Secretary (N Srinivasan) as I did not wish to dignify his ridiculous allegations with a repartee. Today, I am replying, because he is trying to tarnish the image of the Board and its members," he added.
The Pune bid, which was ultimately won by the Sahara group, has snowballed into a major controversy involving former BCCI chief and Agriculture Minister Sharad Pawar and his Parliamentarian daughter Supriya Sule.
The Pawar family has 16 per cent equity in City Corporation but they claim that Deshpande bid for the Pune team on his own and the company's Board was against the move even though it allowed him to use the company's name on bid documents.
But Manohar said had the IPL Governing Council known that Deshpande was bidding in his individual capacity, the bid would have been outrightly rejected.
"Mr. Modi has made a statement that Mr. Deshpande had informed him that though the bid was submitted on behalf of City Corporation Ltd, it was in fact a personal bid on behalf of himself.
"Mr. Modi, who claims to be above board in all matters, did not think this very cogent and important piece of information should be shared with Governing Council Members/Officials," Manohar said.
"His statement becomes even more questionable in the light of the fact that the bid document tendered on behalf of City Corporation Ltd gives information only regarding City Corporation Ltd and does not give any personal information about Mr. Deshpande.
"The bid could have been rejected at the threshold if it had been from Mr. Deshpande in his individual capacity as it did not carry the necessary information about the bidder, i.e. Mr. Deshpande," he added.
Manohar said it is Modi who has created the crisis in which the Board finds itself.
"Mr. Modi, who is himself in the dock, is trying to tarnish the image of the Board by making false and misleading statements time and again when as a fact the Board has landed in this embarrassing situation due to his own misdeeds," he said.
"The reason for me releasing this statement is that the BCCI is an Institution which is the best run Sports Body in the country and the image of BCCI cannot be allowed to be tarnished by people like Mr. Lalit Modi," Manohar said.
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Deshpande was to form new company, says PawarNDTV.com - 1 hour ago Despite the growing controversy around the Pune IPL bid after revelations that City Corporation had earlier authorised Anirudh Deshpande to bid on behalf of the company, Agriculture Minister Sharad Pawar continues to deny any links with the bidding ... Pawar, family not involved in IPL Pune team bid: NCPHindustan Times - 1 hour ago As Sharad Pawar appeared to be in further trouble over the IPL bid issue, Congress today maintained that the Agriculture Minister will have to fend for himself. The Nationalist Congress Party (NCP) on Sunday said the City Corporation company, ... Told IPL that Pune bid was in individual capacity: DeshpandeHindustan Times - 1 hour ago As Sharad Pawar appeared to be in further trouble over the IPL bid issue, Congress today maintained that the Agriculture Minister will have to fend for himself. Press Trust Of India City Corporation MD Aniruddh Deshpande on Sunday denied keeping the ...
City Corp MD bid for Pune franchise on company's behalfHindustan Times - 1 hour ago As Sharad Pawar appeared to be in further trouble over the IPL bid issue, Congress today maintained that the Agriculture Minister will have to fend for himself. Union Minister Sharad Pawar's trouble over his involvement in the bid for the Pune IPL team ... Pawar, family hold 16% in IPL bidderTimes of India - - Jun 3, 2010 "I say with full conviction that my husband or my family has nothing to do with these issues (the IPL bids)...We always stay miles away from it. Yes, we are avid cricket watchers, my husband, my kids, my family, all, and that's where the buck stops. ... Cong: Don't compare Pawar and TharoorTimes of India - Jun 4, 2010 NEW DELHI: TOI's story on agriculture minister Sharad Pawar and his family's link to a failed IPL bidder has kicked up a political storm. Clearly, the clarifications provided by Pawar and his daughter, Supriya Sule, were not carrying much conviction ... Pawar will have to fend for himself, indicates CongressPress Trust of India - 1 hour ago New Delhi, June 6 (PTI) As Sharad Pawar appeared to be in further trouble over the IPL bid issue, Congress today maintained that the Agriculture Minister will have to fend for himself. "The Congress party's stand is the same. These are the nitty-gritty ... BCCI: City Corp authorized bidTimes of India - - Jun 4, 2010 Sharad Pawar and his daughter Supriya Sule reacted to the report in TOI on the Pawar family having a stake in City Corporation, one of the unsuccessful bidders for an IPL franchise, by saying the disclosure did not contradict their earlier insistence ... BJP wants Pawar's resignation, Cong distances itself from allyTimes of India - Jun 4, 2010 NEW DELHI: NCP chief and agriculture minister Sharad Pawar found himself isolated on Friday as political opponents called for his resignation while his allies distanced themselves from him in the wake of a report in The Times of India about Pawar and ... Deshpande bid for company: BCCI sourcesNDTV.com - 8 hours ago Former BCCI chief and Union Agriculture Minister Sharad Pawar may maintain that his investments in the company City Corporation do not link him to the IPL bidding process, but BCCI sources have now told NDTV that there is clear and documentary evidence ... | Timeline of articlesNumber of sources covering this story
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Manohar hits out at ModiHindustan Times - 10 hours ago Reports say that the board of Pune-based City Corporation in which Sharad Pawar, his wife and daughter, an MP, hold 16 per cent share, authorised the ... Manohar doosra: Modi asked Amin to invest in IPLIndian Express - 17 hours ago Cricket board president Shahshank Manohar on Saturday accused suspended IPL chairman Lalit Modi of "maligning" the BCCI and IPL interim commissioner Chirayu ... BCCI knew I was part of Pune bid: Chirayu AminOneindia - Jun 4, 2010 New Delhi, Jun 5: The interim Indian Premier League (IPL) chairman Chirayu Amin has rubbished the scathing accusation slapped against him by the suspended ... IPL's interim chairman wanted to be Pune co-ownerIndian Express - Jun 4, 2010 Chirayu Amin had intended to be co-owner of a franchise while being in the member of governing council. The Indian Premier League's interim chairman Chirayu ... Chirayu part of unsuccessful bid for Pune franchise: ModiIndian Express - Jun 4, 2010 Modi claimed that Chirayu was part of the consortium that made an unsuccessful bid for Pune franchise. IPL bidding row got murkier with suspended IPL ... Indian Cricket needs a cleanup!MyNews.in - - 6 hours ago The fourth edition of Indian Premier League (IPL-IV) is almost a year away, but the controversy associated to it has generated a lot of chaos and harachiri ... Loyalists lie to shield Pawar samay live - 7 hours ago By Arti Bali:Sharad Pawar has formidable clout with movers and shakers of Indian cricket world.Cricketing world biggies,risking being exposed as liers, ... BCCI denies reports of special AGMZee News - 9 hours ago Mumbai: The Board of Control for Cricket in India (BCCI) on Sunday denied reports of holding a special Annual General Meeting (AGM) to sack suspended Indian ... BCCI set to sack ModiIndia Today - 9 hours ago The BCCI is all set to deliver the final blow to suspended IPL commissioner Lalit Modi. Sources have told Headlines Today that BCCI is planning to call a ... BCCI President lashes out at ModiThe News International - 13 hours ago MUMBAI:Shashank Manohar, the BCCI President, has lashed out at Lalit Modi over his allegation that Chirayu Amin, the interim IPL chairman and Modi's ... | Timeline of articlesNumber of sources covering this story
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