Asia Press Agency

Tag: scam

  • FIR Filed Against Former Chhattisgarh CM Bhupesh Baghel

    FIR Filed Against Former Chhattisgarh CM Bhupesh Baghel

    An FIR has been filed against former Chhattisgarh Chief Minister Bhupesh Baghel and promoters of the Mahadev app, marking a significant development in the ongoing investigation into alleged financial irregularities and corruption. According to reports by Times Now, serious charges under the Indian Penal Code (IPC), including criminal breach of trust and cheating, have been leveled against them. This development comes amidst a broader probe by investigative agencies into the Mahadev betting app case, which has revealed substantial financial discrepancies and alleged misconduct involving high-ranking politicians and bureaucrats.

     

    The Enforcement Directorate (ED) has been actively investigating the Mahadev app case, unearthing various irregularities and instances of money laundering. In a recent revelation made during the investigation, the ED disclosed the utilization of several dummy accounts and fake bank entities to invest nearly ₹1,100 crore in the stock market. As part of its ongoing probe, the ED has frozen shares worth this amount until further investigation is completed, highlighting the severity of the financial misconduct associated with the case.

     

    Earlier this month, the Enforcement Directorate made two fresh arrests in connection with the Mahadev app-linked money laundering case. Girish Talreja and Suraj Chokhani were apprehended on March 2 and March 3, respectively. They were subsequently produced before a special Prevention of Money Laundering Act (PMLA) court, which remanded them to ED custody till March 11. These arrests underscore the agency’s determination to pursue all individuals involved in the alleged financial irregularities associated with the Mahadev app.

     

    The ED has alleged that funds acquired unlawfully through the Mahadev app were utilized for paying bribes to politicians and bureaucrats in Chhattisgarh, the home state of the primary promoters and operators of the app. As part of its investigation, the ED has seized or frozen movable properties amounting to ₹1764.5 crore. Additionally, a total of 11 individuals have been arrested thus far in connection with the Mahadev betting app scam case, highlighting the widespread nature of the alleged financial misconduct.

     

    One of the most significant allegations made by the ED in the Mahadev app case is the purported payment of around ₹508 crore to former Chhattisgarh Chief Minister Bhupesh Baghel by the app’s promoters. These allegations, made just ahead of the state assembly elections, were vehemently refuted by Baghel, who dismissed them as efforts to tarnish his reputation. The Congress party, to which Baghel belongs, condemned the accusations as a political vendetta orchestrated by the Central government, further politicizing the already contentious issue.

     

    The Mahadev app case has sent shockwaves through Chhattisgarh’s political landscape, with prominent politicians and bureaucrats implicated in alleged financial irregularities and corruption. The case has also raised concerns about the integrity of the state’s governance and regulatory mechanisms, prompting calls for greater transparency and accountability in public office.

     

    As investigations into the Mahadev app case continue, questions linger about the extent of political involvement and the potential ramifications for Chhattisgarh’s political establishment. The FIR filed against Bhupesh Baghel and Mahadev app promoters underscores the gravity of the allegations and the need for a thorough and impartial investigation into the matter. In the meantime, the public awaits further developments in what has become one of the most high-profile cases of alleged corruption and financial misconduct in recent memory.

  • Subramanian Swamy Alleges ₹5,100 Crore Scam

    Subramanian Swamy Alleges ₹5,100 Crore Scam

    Subramanian Swamy, a senior leader of the Bharatiya Janata Party (BJP), has brought forth serious allegations of a scam involving Axis Bank’s dealings with Max Life Insurance Company. In a public interest litigation (PIL) filed with the Delhi High Court, Swamy claims that Axis Bank orchestrated a scam worth approximately ₹5,100 crore through its sale and purchase of shares in Max Life Insurance. The PIL sheds light on the intricacies of the transactions between Axis Bank, Max Life, and other entities, alleging significant discrepancies and unfair gains.

     

    Max Life Insurance, a prominent player in the Indian insurance sector, operates as a joint venture between Max Financial Services and Axis Bank. The controversy stems from Axis Bank’s proposal to purchase an additional 7% stake in Max Life, amounting to ₹1,612 crore, which received approval from the Insurance Regulatory and Development Authority of India (Irdai) on 6th February. This move would increase Axis Bank’s collective ownership in Max Life to 19.02%, up from its current stake of less than 13%.

     

    Swamy’s petition outlines a series of transactions conducted by Axis Bank between February 2016 and April 2021, alleging that the bank profited substantially from these deals. For instance, the petition highlights a scenario where Axis Bank sold its stake of 0.998% in Max Life to Max Financial Services Ltd and Mitsui Sumitomo International at ₹166 per share. Shortly thereafter, between March and April 2021, Axis Bank and its affiliated entities acquired a 12.002% stake from Max Financial Services at a significantly lower price range of ₹31.51-32.12 per share. Swamy argues that these transactions resulted in exorbitant gains for Axis Bank, as the selling price far exceeded the initial purchase price.

     

    In response to the allegations, Axis Bank has vehemently denied any wrongdoing, dismissing Swamy’s claims as unfounded and devoid of merit. The bank asserts that it obtained all necessary regulatory approvals for the sale and purchase of Max Life shares, emphasizing its commitment to compliance and ethical conduct. Similarly, Max Life has defended the legality of the transactions, stating that they were conducted with the requisite approvals from regulatory authorities such as the RBI, Irdai, and CCI. Both Axis Bank and Max Life have expressed their intent to defend against the allegations and uphold their respective positions before the court.

     

    Subramanian Swamy’s petition further implicates Max Financial Services Ltd and Mitsui Sumitomo International, alleging collusion in facilitating transactions that unfairly favored Axis Bank. He contends that these dealings contravened the directives of Irdai and constituted a blatant fraud perpetrated by Max Life Insurance and Max Financial Services. Subramanian Swamy argues that an independent investigation by a panel of experts is warranted to probe the alleged irregularities and hold the responsible parties accountable.

     

    The matter is scheduled for hearing before a division bench of the Delhi High Court on 13th March. Regulatory bodies such as the Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI), and Irdai have been named as respondents in the case, along with Axis Bank, its affiliates, and Max Life. Senior counsel Mukul Rohatgi represents the Axis group, while Swamy is represented by senior advocate Rajshekhar Rao.

     

    As the legal battle unfolds, the allegations leveled by Swamy have cast a shadow of doubt over the integrity of Axis Bank’s dealings with Max Life Insurance. The outcome of the court proceedings will not only determine the accountability of the parties involved but also have broader implications for the regulatory framework governing corporate transactions in the insurance sector.

  • Subramanian Swamy Alleges ₹5100 Crore Scam in Axis Bank

    Subramanian Swamy Alleges ₹5100 Crore Scam in Axis Bank

    Former Rajya Sabha MP and BJP leader Subramanian Swamy has taken a significant step by moving the Delhi High Court, alleging a scam of nearly ₹5100 crore involving Axis Bank, as reported by Bar and Bench. Swamy has accused the private lender of making undue gains through transactions in shares of Max Life Insurance, prompting him to seek a thorough investigation into the matter.

     

    In his plea before the court, Swamy has laid out several allegations against Axis Bank and its associated entities. He has called for the formation of a committee consisting of experts to investigate the fraudulent acts he claims to have uncovered. The alleged scam revolves around transactions involving shares of Max Life Insurance, with Swamy contending that Axis Bank and its group companies, namely Axis Securities Ltd and Axis Capital Ltd, made significant profits in a non-transparent manner.

     

    According to Swamy’s plea, the actions of Max Life Insurance Co. Ltd and Max Financial Services Ltd, in conjunction with Axis Bank Ltd, constitute a misuse of power and a breach of regulatory requirements. Swamy asserts that there was a deliberate attempt to manipulate the system to enable Axis Bank and its affiliates to reap unjustified profits from the purchase and sale of equity shares of Max Life.

     

    The plea further alleges that Axis Bank, leveraging its dual role as a shareholder and corporate agent of Max Life, engaged in activities that violated regulatory norms and led to illegal profiteering. Swamy contends that despite previous penalties imposed on Axis Bank for similar violations, the institution continued to engage in questionable practices, necessitating a thorough investigation into its recent transactions.

     

    Swamy’s plea seeks not only an investigation into the alleged scam but also the formulation of comprehensive guidelines to prevent similar incidents in the future. He emphasizes the need for regulatory authorities to take decisive action against instances of corruption and malpractice in the banking and insurance sectors to uphold the rule of law and protect the interests of consumers.

     

    The plea underscores the importance of transparency and accountability in the financial industry, particularly in dealings involving significant sums of money. Swamy’s decision to approach the Delhi High Court reflects his commitment to combating corruption and ensuring that those responsible for fraudulent activities are held accountable.

     

    In response to Swamy’s plea, the court has directed him to serve copies of the petition to all respondents and has scheduled the matter for further hearing on March 13, 2024. The involvement of senior advocates on both sides indicates the gravity of the allegations and the legal complexities involved in adjudicating the case.

     

    Overall, Swamy’s move to seek judicial intervention in the alleged scam involving Axis Bank and Max Life Insurance underscores the importance of regulatory oversight and enforcement in safeguarding the integrity of the financial system and protecting the interests of stakeholders.