The above quoted message is dated 2nd March 2014, more than an year ago.If indeed there is a CBI investigation, may be they should first look into the failure of the concerned officers in the regulatory and banking system and the company auditors who failed to act , as the earlier posts would reveal, despite warning bells being sounded with specific inputs.
Rei agro----a mysterious stock to understand.
- Thread starter pradosha
- Start date
- Tags basmati rice rei agro limited reiagro
One might get an unmistakable impression that concerned authorities, for reasons best known to them, seem to dragging their feet in getting deep into REI AGRO fraud as evident from the following:
email information/complaint(sent more than an year ago) to SFIO incuding the CMDs of Consortium memebr banks and the RBI with detailed info about fraud in REI AGRO by Kalpeshuser(whose earlier posts can be vied in this thread)and who seems to have given-up after active pursuit through RTI to expose the fraud :
---------- Forwarded message ----------
From: Kalpesh Sanghavi <[email protected]>
Date: Fri, Feb 28, 2014 at 4:59 PM
Subject: Basmati Scam of 44,60,00,00,000 INR (4460 cr INR)
To: SFIO <[email protected]>, SFIO <[email protected]>
Cc: RBI CPIO <[email protected]>, RBI CPIO Maksane Tarachand <[email protected]>, DOFSR - BOA - CPIO <[email protected]>, DOFSR - BOA - FAA <[email protected]>, DOFSR - IF1 - CPIO <[email protected]>, DOFSR - IF1 - FAA <[email protected]>, Andhra Bank CPIO <[email protected]>, Andhra Bank FAA <[email protected]>, Bank of Baroda Mumbai CPIO <[email protected]>, Bank of Baroda Mumbai FAA <[email protected]>, Bank of Baroda Kolkata CPIO <[email protected]>, Bank of Baroda Kolkata FAA <[email protected]>, Bank of Maharashtra CPIO <[email protected]>, Bank of Maharashtra CPIO <[email protected]>, Bank of Maharashtra FAA <[email protected]>, Canara Bank CPIO < [email protected]>, Canara Bank CPIO <[email protected]>, Canara Bank FAA < [email protected]>, Central Bank of India CPIO <[email protected]>, Central Bank of India Transperancy Officer <[email protected]>, Central Bank of India FAA <[email protected]>, Corporation Bank CPIO <[email protected]>, Corporation Bank CPIO <[email protected]>, Corporation Bank FAA <[email protected]>, Corporation Bank FAA <[email protected]>, Dena Bank Mumbai CPIO <[email protected]>, Dena Bank Kolkata CPIO <[email protected]>, IDBI bank CPIO <[email protected]>, IDBI BANK FAA < [email protected]>, IDBI BANK FAA <[email protected]>, IOB CPIO <[email protected]>, IOB Transperancy Officer <[email protected]>, IOB Mumbai CPIO <[email protected]>, IOB Agra CPIO <[email protected]>, IOB Mysore CPIO <[email protected]>, INDIAN BANK CPIO <[email protected]>, INDIAN BANK Transperancy OFFICER <[email protected]>, INDIAN BANK Nodal OFFICER <[email protected]>, INDIAN BANK Chennai South Zone CPIO <[email protected]>, INDIAN BANK Chennai North Zone <[email protected]>, INDIAN BANK Mumbai CPIO <[email protected]>, PNB Head Office RTI CELL <[email protected]>, PNB Head Office CPIO <[email protected]>, PNB Head Office FAA <[email protected]>, PSB CPIO <[email protected]>, PSB TRANSPERANCY OFFICER <[email protected]>, PSB FAA <[email protected]>, SBI CPIO < [email protected]>, SBI CAPIO < [email protected]>, SBI FAA < [email protected]>, SBP Head Office CPIO <[email protected]>, SBP Head office FAA <[email protected]>, SBP Commercial Branch Kolkata CPIO <[email protected]>, SBP Commercial Branch Kolkata CPIO <[email protected]>, SBT CPIO <[email protected]>, SBT FAA <[email protected]>, SBT FAA < [email protected]>, SBBJ HO CPIO <[email protected]>, SBBJ HO CPIO <[email protected]>, SBBJ HO FAA <[email protected]>, SBBJ HO FAA <[email protected]>, Union Bank Mumbai CPIO <[email protected]>, Union Bank Kolkata CPIO <[email protected]>, UNION BANK FAA <[email protected]>, United Bank CPIO <[email protected]>, United Bank CPIO <[email protected]>, Uco Bank CPIO <[email protected]>, Uco Bank CPIO <[email protected]>, UCO bank Audit/Inspection Department <[email protected]>, UCO bank Corporate Credit Department <[email protected]>, UCO bank Vigilance Department <[email protected]>, UCO bank Vigilance Department <[email protected]>, UCO bank Credit Monitoring Department <[email protected]>, UCO bank Credit Monitoring Department <[email protected]>, UCO bank Risk Management Department <[email protected]>, UCO BANK Chairman & Managing Director <[email protected]>, UCO BANK Executive Director <[email protected]>, UCO BANK Executive Director <[email protected]>, UCO BANK Director <[email protected]>
To
Shri Vinod Kumar Sharma
Additional Director (Inv/Adm)
Serious Fraud Investigation Office
2nd floor, Paryavaran Bhawan,
CGO Complex, Lodhi Road,
New Delhi-110003
Tel : 011-24369505.(off),Fax : 24365809
Subject : Indias Largest Basmati Scam of 44,60,00,00,000 INR (4460 cr INR)
1. PSU banks consortium (Lead Bank UCO bank) has funded 44,60,00,00,000 (4460 cr) to REI agro Limited (RAL). This public money is at high risk to the best of my knowledge and understanding.
a) As per the RTI replies of banks, bankers have done inspection and supervision of unit on sample basis.
b) As per the RTI replies of banks, Lead bank has appointed stock and receivable auditor and audit is being conducted on quarterly basis.
2. Plant and machinery cost of 118 + 35 TPH (BASMATI RICE MILL) would work out to appx 10 cr (for 10 TPH) * 16 = 160 cr appx. (You may inquire with BUHLER OR SATAKE the leading suppliers of RICE mill machines)
3. Transportation and installation cost Appx 10 cr
4. Power Plant cost 5 cr per MW appx * 5 MW = 25 cr
5. SILO cost Appx 10 cr.
6. Total cost of Plant and Machinery will be around 205 cr for 118 + 35 TPH
7. But if you see RAL numbers they are showing 737 cr (up to 31.03.2013) + 660 cr (during 2013 – 2014 as per CARE report) = appx 1400 cr
8. Total dent is around 1400 cr – 205 cr = 1195 cr in plant and machinery it self.
9. Similar dent can be seen in building cost also appx 500 cr additional.
10. All this monies are siphoned off from banks pocket (public money).
11. Also dent will be there in working capital limits, as stock and receivables would not be genuine as I already point out long back to bankers.
12. Also I bring to your notice announcement made at SGX website by GEMS TV HOLDINGS in respect to 100 % overseas subsidiary of RAL, which clearly indicates fudging of transaction with related parties.
“During the course of the Due Diligence Exercise, the Company uncovered significant trading transactions of the Vendor which appear to involve related parties (the “Highlighted Transactions”). The Highlighted Transactions constituted the majority of the Vendor’s business and were previously not disclosed by the Vendor to the Company. As of the date of this Announcement, notwithstanding the Company’s requests for an explanation of the Highlighted Transactions, including a letter dated 13 January 2014 from the Company’s solicitors, the Vendorhas not provided the Company with a substantive explanation of the Highlighted Transactions.”
13. RAL in my view is a big scam and ultimate looser will be bankers, invariably the public monies.
14. I also suspect that some of the bank officers are hand in glove with management of REI Agro Limited. There is some team of officer who had been grossly negligent on Funding provided and extended to REI agro Limited with some specific purpose which they know it to their best knowledge. The stock audit process of REI agro Limited has also not been carried out with standard auditing practice to the best of my understanding of data reading.
15. I Also believe that some of the bank officers have also ignored the terms of lending which clearly mentions that WC funds can not be used for CAPEX purposes. Further if given the opportunity I will bring this to your notice many more banking violation of terms of lending have been committed by bank officers who simply play with public money.
16. I also strongly believe that there is gross negligence on part of outside agency who is involved in conducting stock and receivable audit.
I request you to register the case and investigate the matter with respect to RAL. CIN : L14200WB1994PLC104573, Company Name : REI AGRO LIMITED, Registration Number : 104573
I hope that this request will not be in vain once again.
Copy to :
UCO bank (The lead bank)
Ministry of Finance – DOFSR
Ministry of Finance – IF1
Reserve Bank of India
Consortium Members of bank
The following message was posted by a boarder in the REI counter in Moneycntrol Message Board commending Kalpeshusers efforts:
"Kalpesh, I dont know how to commend U for this great work. I went through the mail under the caption "India's largest Basmati Scam" that U have adressed to so many Banks(including CMDs as well),RBI, various regulatory and investigating authorities(including SFIO) with analytical details. I also noted the budgetary price quote for a 12 TPH Basmati Rice Plant that U have got from a supplier based on which U have tried to compare the cost of plant and machnery as per REI books and the cost worked out as per the budgetary estimate.By their deaf and dumb attitude and not coming out with any clarificatory statement despite being aware of adverse reports emanating in the Public domain, REI management seems to be giving an impression that all is not really well with their functioning.The manner in which U have sounded the alert, i am sure, will provoke some action, both by REI management and by the autorities concerned,that may prevent further dent in REI's value.
Unlike many other scams which came to light all of a sudden, here those ought to be concerned dont seem to be bothered even though the talk of a possible scam has been in the air for a pretty long time and complaints have been made to the company, its auditors and SEBI.Can any one say that there is no scam of any kind and all this talk is imagination of misunderstanding the facts, figures and issues involved? Helps if some one does and explain why the impression that there is a scam is hopelessly wrong. Who else is in a better position to do this than the REI management itself? Why are they ignoring such a serious charge?
There is no rational explanation from the REI management who have remained indifferant as in the case of REI SIX TEN which is in a much worst situation and if a small shareholder apprehends the loss of his investment, as has happened to those in REI SIX TEN, does the complainant attract any blame? REI will be a classic case of negligence and indifferance of concerned authrities if they fail to act now and a real scam breaks out in future and those whose duty it was to have taken the desired action should definitely face the consequences of their inaction.Hopefully atleast the fear of it should force the REI management and the concerned authorities to initiate the needed action to arrest the downfall of REI which has utilised some 5000Cr of Public funds, leaving aside investors money.I am saying so not being unaware of the sceptisism about the Governamental authorities springing into action fast enough in such scam related matters."
email information/complaint(sent more than an year ago) to SFIO incuding the CMDs of Consortium memebr banks and the RBI with detailed info about fraud in REI AGRO by Kalpeshuser(whose earlier posts can be vied in this thread)and who seems to have given-up after active pursuit through RTI to expose the fraud :
---------- Forwarded message ----------
From: Kalpesh Sanghavi <[email protected]>
Date: Fri, Feb 28, 2014 at 4:59 PM
Subject: Basmati Scam of 44,60,00,00,000 INR (4460 cr INR)
To: SFIO <[email protected]>, SFIO <[email protected]>
Cc: RBI CPIO <[email protected]>, RBI CPIO Maksane Tarachand <[email protected]>, DOFSR - BOA - CPIO <[email protected]>, DOFSR - BOA - FAA <[email protected]>, DOFSR - IF1 - CPIO <[email protected]>, DOFSR - IF1 - FAA <[email protected]>, Andhra Bank CPIO <[email protected]>, Andhra Bank FAA <[email protected]>, Bank of Baroda Mumbai CPIO <[email protected]>, Bank of Baroda Mumbai FAA <[email protected]>, Bank of Baroda Kolkata CPIO <[email protected]>, Bank of Baroda Kolkata FAA <[email protected]>, Bank of Maharashtra CPIO <[email protected]>, Bank of Maharashtra CPIO <[email protected]>, Bank of Maharashtra FAA <[email protected]>, Canara Bank CPIO < [email protected]>, Canara Bank CPIO <[email protected]>, Canara Bank FAA < [email protected]>, Central Bank of India CPIO <[email protected]>, Central Bank of India Transperancy Officer <[email protected]>, Central Bank of India FAA <[email protected]>, Corporation Bank CPIO <[email protected]>, Corporation Bank CPIO <[email protected]>, Corporation Bank FAA <[email protected]>, Corporation Bank FAA <[email protected]>, Dena Bank Mumbai CPIO <[email protected]>, Dena Bank Kolkata CPIO <[email protected]>, IDBI bank CPIO <[email protected]>, IDBI BANK FAA < [email protected]>, IDBI BANK FAA <[email protected]>, IOB CPIO <[email protected]>, IOB Transperancy Officer <[email protected]>, IOB Mumbai CPIO <[email protected]>, IOB Agra CPIO <[email protected]>, IOB Mysore CPIO <[email protected]>, INDIAN BANK CPIO <[email protected]>, INDIAN BANK Transperancy OFFICER <[email protected]>, INDIAN BANK Nodal OFFICER <[email protected]>, INDIAN BANK Chennai South Zone CPIO <[email protected]>, INDIAN BANK Chennai North Zone <[email protected]>, INDIAN BANK Mumbai CPIO <[email protected]>, PNB Head Office RTI CELL <[email protected]>, PNB Head Office CPIO <[email protected]>, PNB Head Office FAA <[email protected]>, PSB CPIO <[email protected]>, PSB TRANSPERANCY OFFICER <[email protected]>, PSB FAA <[email protected]>, SBI CPIO < [email protected]>, SBI CAPIO < [email protected]>, SBI FAA < [email protected]>, SBP Head Office CPIO <[email protected]>, SBP Head office FAA <[email protected]>, SBP Commercial Branch Kolkata CPIO <[email protected]>, SBP Commercial Branch Kolkata CPIO <[email protected]>, SBT CPIO <[email protected]>, SBT FAA <[email protected]>, SBT FAA < [email protected]>, SBBJ HO CPIO <[email protected]>, SBBJ HO CPIO <[email protected]>, SBBJ HO FAA <[email protected]>, SBBJ HO FAA <[email protected]>, Union Bank Mumbai CPIO <[email protected]>, Union Bank Kolkata CPIO <[email protected]>, UNION BANK FAA <[email protected]>, United Bank CPIO <[email protected]>, United Bank CPIO <[email protected]>, Uco Bank CPIO <[email protected]>, Uco Bank CPIO <[email protected]>, UCO bank Audit/Inspection Department <[email protected]>, UCO bank Corporate Credit Department <[email protected]>, UCO bank Vigilance Department <[email protected]>, UCO bank Vigilance Department <[email protected]>, UCO bank Credit Monitoring Department <[email protected]>, UCO bank Credit Monitoring Department <[email protected]>, UCO bank Risk Management Department <[email protected]>, UCO BANK Chairman & Managing Director <[email protected]>, UCO BANK Executive Director <[email protected]>, UCO BANK Executive Director <[email protected]>, UCO BANK Director <[email protected]>
To
Shri Vinod Kumar Sharma
Additional Director (Inv/Adm)
Serious Fraud Investigation Office
2nd floor, Paryavaran Bhawan,
CGO Complex, Lodhi Road,
New Delhi-110003
Tel : 011-24369505.(off),Fax : 24365809
Subject : Indias Largest Basmati Scam of 44,60,00,00,000 INR (4460 cr INR)
1. PSU banks consortium (Lead Bank UCO bank) has funded 44,60,00,00,000 (4460 cr) to REI agro Limited (RAL). This public money is at high risk to the best of my knowledge and understanding.
a) As per the RTI replies of banks, bankers have done inspection and supervision of unit on sample basis.
b) As per the RTI replies of banks, Lead bank has appointed stock and receivable auditor and audit is being conducted on quarterly basis.
2. Plant and machinery cost of 118 + 35 TPH (BASMATI RICE MILL) would work out to appx 10 cr (for 10 TPH) * 16 = 160 cr appx. (You may inquire with BUHLER OR SATAKE the leading suppliers of RICE mill machines)
3. Transportation and installation cost Appx 10 cr
4. Power Plant cost 5 cr per MW appx * 5 MW = 25 cr
5. SILO cost Appx 10 cr.
6. Total cost of Plant and Machinery will be around 205 cr for 118 + 35 TPH
7. But if you see RAL numbers they are showing 737 cr (up to 31.03.2013) + 660 cr (during 2013 – 2014 as per CARE report) = appx 1400 cr
8. Total dent is around 1400 cr – 205 cr = 1195 cr in plant and machinery it self.
9. Similar dent can be seen in building cost also appx 500 cr additional.
10. All this monies are siphoned off from banks pocket (public money).
11. Also dent will be there in working capital limits, as stock and receivables would not be genuine as I already point out long back to bankers.
12. Also I bring to your notice announcement made at SGX website by GEMS TV HOLDINGS in respect to 100 % overseas subsidiary of RAL, which clearly indicates fudging of transaction with related parties.
“During the course of the Due Diligence Exercise, the Company uncovered significant trading transactions of the Vendor which appear to involve related parties (the “Highlighted Transactions”). The Highlighted Transactions constituted the majority of the Vendor’s business and were previously not disclosed by the Vendor to the Company. As of the date of this Announcement, notwithstanding the Company’s requests for an explanation of the Highlighted Transactions, including a letter dated 13 January 2014 from the Company’s solicitors, the Vendorhas not provided the Company with a substantive explanation of the Highlighted Transactions.”
13. RAL in my view is a big scam and ultimate looser will be bankers, invariably the public monies.
14. I also suspect that some of the bank officers are hand in glove with management of REI Agro Limited. There is some team of officer who had been grossly negligent on Funding provided and extended to REI agro Limited with some specific purpose which they know it to their best knowledge. The stock audit process of REI agro Limited has also not been carried out with standard auditing practice to the best of my understanding of data reading.
15. I Also believe that some of the bank officers have also ignored the terms of lending which clearly mentions that WC funds can not be used for CAPEX purposes. Further if given the opportunity I will bring this to your notice many more banking violation of terms of lending have been committed by bank officers who simply play with public money.
16. I also strongly believe that there is gross negligence on part of outside agency who is involved in conducting stock and receivable audit.
I request you to register the case and investigate the matter with respect to RAL. CIN : L14200WB1994PLC104573, Company Name : REI AGRO LIMITED, Registration Number : 104573
I hope that this request will not be in vain once again.
Copy to :
UCO bank (The lead bank)
Ministry of Finance – DOFSR
Ministry of Finance – IF1
Reserve Bank of India
Consortium Members of bank
The following message was posted by a boarder in the REI counter in Moneycntrol Message Board commending Kalpeshusers efforts:
"Kalpesh, I dont know how to commend U for this great work. I went through the mail under the caption "India's largest Basmati Scam" that U have adressed to so many Banks(including CMDs as well),RBI, various regulatory and investigating authorities(including SFIO) with analytical details. I also noted the budgetary price quote for a 12 TPH Basmati Rice Plant that U have got from a supplier based on which U have tried to compare the cost of plant and machnery as per REI books and the cost worked out as per the budgetary estimate.By their deaf and dumb attitude and not coming out with any clarificatory statement despite being aware of adverse reports emanating in the Public domain, REI management seems to be giving an impression that all is not really well with their functioning.The manner in which U have sounded the alert, i am sure, will provoke some action, both by REI management and by the autorities concerned,that may prevent further dent in REI's value.
Unlike many other scams which came to light all of a sudden, here those ought to be concerned dont seem to be bothered even though the talk of a possible scam has been in the air for a pretty long time and complaints have been made to the company, its auditors and SEBI.Can any one say that there is no scam of any kind and all this talk is imagination of misunderstanding the facts, figures and issues involved? Helps if some one does and explain why the impression that there is a scam is hopelessly wrong. Who else is in a better position to do this than the REI management itself? Why are they ignoring such a serious charge?
There is no rational explanation from the REI management who have remained indifferant as in the case of REI SIX TEN which is in a much worst situation and if a small shareholder apprehends the loss of his investment, as has happened to those in REI SIX TEN, does the complainant attract any blame? REI will be a classic case of negligence and indifferance of concerned authrities if they fail to act now and a real scam breaks out in future and those whose duty it was to have taken the desired action should definitely face the consequences of their inaction.Hopefully atleast the fear of it should force the REI management and the concerned authorities to initiate the needed action to arrest the downfall of REI which has utilised some 5000Cr of Public funds, leaving aside investors money.I am saying so not being unaware of the sceptisism about the Governamental authorities springing into action fast enough in such scam related matters."
The CBI Director is reported to have said that failure of regulatory mechanism is behind rising fraud cases(http://www.ndtv.com/india-news/failure-of-regulatory-mechanism-behind-rising-fraud-cases-cbi-561688) But why has the regulatory system been failing? Is it not that the decision making levels in the system have failed and not the system because there is no fear of consequences of inaction at higher levels? Can anyone explain how REI Agro could have indulged in such a massive fraud without the connivance of officials/professionals? One wonders the silence and lack of action by Government/regulatory authorities in this case as compared to what happened in other fraud cases like Satyam in spite of whistle blowing more than an year ago as can be seem from the earlier posts in this thread.
We are living in India...all systems are corrupted to the core in last 15 years..
Moreover, so many listed companies are vanished from BSE and NSE looted thru IPO...now not at all listed...
You know...Amrutanjan issued private placement in 1992 for there sister concern...Amrutanjan Leasing at Rs.15/- till today nothing has happen...money looted..
I have list of stocks still holding almost worth of Rs.4.20 lakhs...now cost is "ZERO". Part of the Game..
Did you think all big corporates are clean...not at all...all run by debt (others money)...looting India...
We have to live with it....instead blaming the system....try to protect ourselves...only option left with us.
Moreover, so many listed companies are vanished from BSE and NSE looted thru IPO...now not at all listed...
You know...Amrutanjan issued private placement in 1992 for there sister concern...Amrutanjan Leasing at Rs.15/- till today nothing has happen...money looted..
I have list of stocks still holding almost worth of Rs.4.20 lakhs...now cost is "ZERO". Part of the Game..
Did you think all big corporates are clean...not at all...all run by debt (others money)...looting India...
We have to live with it....instead blaming the system....try to protect ourselves...only option left with us.
If one were to read the posts from beginning, it can be seen that the possible tragic end of this stock was visible even at a time when it was quoting around Rs6. The explicit intention of this thread was to provoke some action by concerned authorities which never happened. Many investors are biting the dust. Thanks to the hopeless regulatory system that has turned a blind eye on companies like REIAGRO!!!
CBI searches REI Agro Offices for alleged bank fraud of over Rs 3,814 crore
Read more at:
http://economictimes.indiatimes.com/industry/banking/finance/banking/cbi-searches-rei-agro-offices-for-alleged-bank-fraud-of-over-rs-3814-crore/articleshow/49560139.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Read more at:
http://economictimes.indiatimes.com/industry/banking/finance/banking/cbi-searches-rei-agro-offices-for-alleged-bank-fraud-of-over-rs-3814-crore/articleshow/49560139.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
ARRESTED AT LAST. Pl take a look from the beginning of this thread on 31st October2013:
http://epaperbeta.timesofindia.com/...honcho-held-for-Rs-3900cr-bank-05052017013045
http://epaperbeta.timesofindia.com/...honcho-held-for-Rs-3900cr-bank-05052017013045
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| T | Rei agro | Equities | 0 | |
| A | Rei agro ltd | Introductions | 0 | |
| K | Need advice on REI Agro and Tanla Sol | Equities | 0 | |
| D | REI Agro did it to my backside. | Introductions | 0 | |
| D | REI Agro did to my backside. | General Trading & Investing Chat | 3 |