A case of Love Jihad has come to the fore from the Gwalior district of Madhya Pradesh where an individual identified as Mohammed Shabbir befriended a Hindu girl and established sexual relations with her. The accused posed as Raju and claimed that he belonged to the Hindu religion.
As per the reports, the Hindu woman was already married and was staying separated from her husband. Meanwhile, she met Shabbir who made her believe that he was a Hindu and is interested in her.
Gwalior, MP: Mohd Shabbir, posing as Raju Kumar, befriended a Hindu girl and they got married in a Hindu temple.
After marriage, she was shocked to learn he was Muslim. He then allegedly pressured her to convert to Islam.
The woman filed a police complaint after she discovered that the man who had forcefully established sexual relations with her was actually a Muslim. She said that the accused lied to her saying that his name was Raju. On confrontation, however, he accepted that he was a Muslim.
The woman in the complaint stated that the accused forced her to convert her religion to Islam and also abused, and assaulted her for refusing to agree to him. She also stated that the accused tried to kill her. This kept on happening for the last 4-5 years.
The police took cognizance of the event and arrested the accused for raping and torturing a Hindu woman. “He raped her and also forced her to convert her religion to Islam. The woman complained to the police station based on which the complaint under section 376 of the Indian Penal Code has been filed. Also, relevant sections of the State Conversion Act have been imposed upon the accused,” the Police said.
Union Railways Minister Ashwini Vaishnaw on Monday inspected the Kanchenjunga Express train accident site in Darjeeling district and said that the rescue operation has been completed.
“Right now our focus is on restoration. This is the main line. The rescue operation has been completed. This is not the time for politics. I will also meet the injured,” Vaishnaw told reporters.
The Railways Minister also visited the North Bengal Medical College in Siliguri and met the injured.
At least eight people have died and about 25 to 30 are injured as a goods train collided with the Sealdah-bound Kanchanjungha Express on Monday morning near New Jalpaiguri, a senior North Frontier Railway (NFR) official said.
The accident took place at Ruidhasa near Rangapani station in the Katihar Railway Division ahead of New Jalpaiguri Junction at around 8:45 am today. The area falls in the Siliguri subdivision of Darjeeling district.
Kanchanjungha Express which runs between Silchar in Assam to Sealdah in Kolkata was on its way from Agartala in Tripura to Sealdah when the goods train hit it from behind, according to Sabyasachi De, Chief Public Relations Officer – Northeast Frontier Railway (NFR).
A wagon of the Kanchenjunga Express train was suspended in the air after a goods train rammed into it at Ruidhasa near Rangapani station under the Siliguri subdivision in the Darjeeling district.
Meanwhile, rescue efforts to extricate trapped passengers are ongoing. Teams of the National Disaster Response Force (NDRF) and police are present at the Kanchenjunga Express train accident site in Ruidhasa in the Darjeeling district of West Bengal.
(This news report is published from a syndicated feed. Except for the headline, the content has not been written or edited by OpIndia staff)
Protests have broken out across the country in response to the shattering of Jain Tirthankara idols in Pavagadh. The Jain community’s leaders have been protesting since the 16th of June night. Around 2500 Jain Samaj members marched to the Collector’s office in Surat and raised slogans on Sunday causing the Collector’s office to be operational at night. Leaders of the Jain community petitioned collectors in all cities, including Surat and Vadodara. They also presented to Harsh Sanghvi, Minister of State for Home Affairs. He has promised to reinstall the idols in their original locations.
Minister of State for Home Harsh Sanghvi’s statement regarding the demolition of idols of Jain Tirthankaras in Pavagadh was released on 17th June. “Pavagadh is a historic land. Many Jain teerthankars’ statues had been established on the mountains of Pavagadh…No trust, organization or individual has the right to demolish such historic statues and religious places. Gujarat CM has ensured that the sentiments of Jains must not be hurt. These statues must be re-established at their original positions…In some hours, the statues will be re-established,” he said.
#WATCH | Gandhinagar: On Pavagadh Jain temple issue, Gujarat Minister Harsh Sanghvi says, "Pavagadh is a historic land. Many Jain teerthankars' statues had been established on the mountains of Pavagadh…No trust, organisation or individual has the right to demolish such historic… pic.twitter.com/WzCiptEZoM
He further said, “The trust has taken applications from whoever has vandalized these statues. After discussion with the Chief Minister, the government has instructed the collector that as per the rules, there can be no permission to remove the idols that were installed there for years. Those idols should be re-installed where they were, which was near the staircase. The faith of thousands of people in society has been hurt somewhere. The Collector, SP, Jain Samaj, and other trusts have been instructed to immediately conclude the meeting and start the work of installing those statues immediately.”
The leader of the Jain community as well as the trustee of the temple trust have also issued statements in the given case.
The controversy started on Sunday (June 16th). On Sunday, the Pavagadh Temple Trust demolished the statues of thousands of years old Jain Tirthankaras on both sides of Dadra, leading up to the Shaktipeeth Mahakali Mata temple on the Pavagadh mountain. The temple trust was developing to provide better facilities to the pilgrims. The trust is said to have removed the idols from their original place and broken them. This enraged the Jain community leaders, who from different parts of the state, including Vadodara and Surat, reached Pavagadh in large numbers. A controversy erupted over the removal of prestigious mythological idols on the old road leading to Pavagadh Nij Mandir. The only demand of the Jain society is that legal action should be taken against the elements who commit such acts.
The Jain community was outraged when it learned that idols had been damaged in Pavagadh. In this case, Jain community members gathered to protest in large numbers at the Surat Collector’s office late at night. In this case, Jain Prem Vijayji Maharaj of Jain Samaj filed a petition, stating, “We oppose the Pavagarh incident.” The Jain community has made two demands of the government: that the perpetrators of the Pavagadh tragedy be severely punished, and that the site of the atrocity in Derasar be repaired and given back to the Jain community.
Jain leaders have said, “It is good that the temple of Mahakali Mata is being developed but thousands of years old Shwetambar Jain idols in Pavagadh have been destroyed. This incident has caused severe repercussions in the Jain community.” Another Jain leader threatened to approach the High Court in this matter. But now the government has intervened and ordered the restoration of the idols of Jain Tirthankaras at Pavagadh.
India is grappling with the issue of infiltrators, particularly Rohingya infiltrators from Bangladesh-Myanmar entering India illegally, have made the situation challenging for the country. When the Indian government attempts to bring legislation like the NRC to remove them, the opposition parties rally in support of these Islamic infiltrators. It is estimated that about 40,000 Rohingya infiltrators are illegally residing in India. Meanwhile, another estimate suggests that about 200 Rohingya Muslim infiltrators are pushed into India each month.
These Rohingya Muslim infiltrators are being housed in several states around the country, and an international human trafficking ring is also involved. The NIA team recently arrested this gang’s mastermind, Jalil Miyan. Jalil Miyan, who has a reward of Rs 1 lakh on his head, is an associate of the gang leader Jibon Rudra Pal alias Suman. The majority of the Rohingyas are from Myanmar’s Rakhine state, where they were denied citizenship in 1982. Since 2015, over 9 lakh of them have migrated to several countries, including Bangladesh and India.
While the NIA has nabbed Jalil Miyan, his accomplices Judge Miyan and Shanto are still at large. So far, 29 members of this gang have been arrested. In November 2023, the NIA had attempted to arrest Jalil Miyan, however, he managed to escape that time. Rohingya Muslims are being settled in India by providing bogus documents under a package worth 10-20 lakh rupees (14-28 lakh Bangladeshi Taka). The Indian government has declared them illegal immigrants and a threat to India’s national security.
However, the UN refers to them as refugees. Rohingya infiltrators are trained in languages such as Hindi, Assamese and other local languages before settling in India to avoid detection due to their accents. This gang used to infiltrate 5-10 Rohingya Muslims into India each day. Even the appearance of these illegal intruders is modified to conceal their identity. There are numerous such camps in Delhi where Rohingyas reside. Alarmingly, in just two years, the population of Rohingya Muslims in India has doubled.
The central government has stated that there are no Rohingya refugee camps in the country. Their number is estimated to be 10,000 in Muslim-majority Jammu and Kashmir. These Rohingyas have also been involved in numerous crimes. Furthermore, a significant number of Rohingyas joined in anti-CAA protests in Shahan Bagh and Jafrabad. India already has the world’s largest population, and terrorists are continuously looking for an opportunity to carry out attacks. In this scenario, the Rohingyas pose a serious threat to the country.
Tripura shares an 856-kilometer border with Bangladesh. In around 16 months, 1018 intruders have been arrested in Tripura alone. In 2023, Tripura Police arrested 337 Bangladeshis, including 93 women and 24 children. Meanwhile, the BSF nabbed 744 infiltrators. In 2022, 369 intruders were caught. Similarly, in the year 2021, 208 intruders were arrested, including 93 Bangladeshis. These illegal Rohingya intruders are being settled in Chennai.
The Reserve Bank of India on the 29th of May 2024 ordered Edelweiss Asset Reconstruction Company Limited (EARCL) to cease and desist from the acquisition of financial assets, including security receipts (SRs), and reorganizing the existing SRs into senior and subordinate tranches. In the same order, the banking regulator also ordered ECL Finance Ltd (ECL) to cease and desist from undertaking any structured transactions in respect of its wholesale exposures with immediate effect.
EARCL and ECL both are entities under the Edelweiss group or the Edelweiss Financial Services Limited, based in Mumbai.
Why did the RBI come down heavily on Edelweiss and its group entities?
The RBI in its press release said, “The action is based on material concerns observed during the course of supervisory examinations, essentially arising out of conduct of the group entities acting in concert, by entering into a series of structured transactions for evergreening stressed exposures of ECL, using the platform of EARCL and connected AIFs, thereby circumventing applicable regulations. Incorrect valuation of SRs was also observed in both ECL and EARCL. Apart from the above, in ECL, supervisory observations included submission of incorrect details of its eligible book debts to its lenders for computation of drawing power, non-compliance with loan to value norms for lending against shares, incorrect reporting to Central Repository for Information on Large Credits system (CRILC) and non-adherence to Know Your Customer (KYC) guidelines. ECL, by taking over loans from non-lender entities of the group for ultimate sale to the group ARC, allowed itself to be used as a conduit to circumvent regulations which permit ARCs to acquire financial assets only from banks and Financial Institutions”.
If we break down this operative part of the RBI order, startling revelations about the functioning of Edelweiss and its group entities come to the fore:
Edelweiss and its group entities were entering into structured transactions for the evergreening of loans.
They were doing so through stressed exposures of ECL, using the platform of EARCL and connected AIFs, circumventing applicable regulations.
Both ECL and EARCL (group entities of Edelweiss) were giving incorrect evaluations of Security Receipts (SRs).
ECL, by taking over loans from non-lender entities of the group for ultimate sale to the group ARC, allowed itself to be used as a conduit to circumvent regulations that permit ARCs to acquire financial assets only from banks and Financial Institutions.
Evergreening of loans is a euphemistic phrase. In simple terms, it essentially means giving a fresh loan to avert the default on another loan, by using the new loan to repay the existing one. Essentially, it is done by several banks to hide the true nature of stressed loans. So let’s assume two banks have 2 stressed loans. Both banks would then ‘buy back’ the loans from each other to hide the real nature of the stressed loan. One of the common methods of evergreening of loans is to extend a loan to a related entity which is then used to pay back to stressed loan of the entity. For example, company A has a Rs 100 loan which it might default on. Company B, which is related to Company A, takes a loan of Rs 100 and then pays off the loan of Company A.
In December 2023 as well, the RBI had taken a stern view of Non-Banking Financial Institutions (NBFCs) utilizing the Alternate Investment Fund (AIF) route to evergreen their loans.
An Alternative Investment Fund or AIF is any fund established or incorporated in India that is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors. Interestingly, AIFs cannot make invitations to the public at large to subscribe to its units and can raise funds from sophisticated investors only through private placement. AIFs (other than angel funds) are not allowed to accept from an investor, an investment of value less than Rs 1 crore. In the case of investors who are employees or directors of the AIF or employees or directors of the Manager, the minimum value of an investment is Rs 25 lakh.
AIFs are regulated by SEBI and are incorporated under the SEBI (Alternative Investment Funds) Regulations, 2012. All AIFs are required to submit reports to SEBI. Among the three categories, Category 1 and 2 AIFs are required to submit quarterly reports while Category 3 AIFs are required to submit monthly reports. It is pertinent to note that Edelweiss AIF, which we will be talking about in this article, is a Category 3 AIF which would require to submit monthly reports to SEBI. These AIFs are meant to be strictly controlled and monitored by the SEBI to ensure no malpractice is undertaken.
The issue, however, is larger than just evergreening of loans by NBFCs through AIFs. RBI’s Financial Stability Report, issued in December 2023, highlights the regulatory concerns over the growing interlinkages of AIFs with traditional providers of capital such as banks and NBFCs, spillover effects, and the potential for misuse of regulatory arbitrage between the different funding platforms.
As far as the RBI order concerning Edelweiss is concerned, it is clear that Edelweiss was not only evergreening loans by entering into structured transactions through its group entities but ECL and EARCL were also using connected AIFs to circumvent applicable laws.
This order by the RBI came days after a report by OpIndia where we had conducted a case study on the Hindustan National Glass (HNGIL) case. The HNG case is one of the longest Insolvency and Bankruptcy Code (IBC) cases in India – one that has dragged on for over 600 days (and counting). OpIndia has analyzed in detail how the conduct of the Competition Commission of India (CCI) has contributed greatly to the delay in the resolution process. We also analyzed how private financial institutions like Edelweiss were manipulating the IBC process for financial gains. While the OpIndia report focused on certain aspects of Edelweiss’ involvement in the HNG case, the RBI order passed under the SARFAESI Act opens a can of worms.
As we would now analyze, it would appear that Edelweiss and its group entities seem to have indulged in the same predatory practices in the HNG case for which the RBI passed strictures against Edelweiss Asset Reconstruction Company Limited (EARCL) and ECL Finance Ltd (ECL).
HNGIL – a classic case that fits into the scenario of Edelweiss group misusing its web of entities in a particular transaction to circumvent regulations.
The case started in 2020 with the DBS Bank initiating insolvency proceedings against Hindustan National Glass & Industries Limited (HNG) in NCLT Kolkata. Insolvency was admitted in the year 2021. Hindustan National Glass & Industries Limited is an Indian container glassmaker based in Kolkata. The company is the largest and one of the oldest glass manufacturing companies in India.
The IBC process as far as HNG goes is one of the longest resolution processes after the passage of the law – marred with allegations of impropriety on the part of the Resolution Professional (RP), conflict of interest, and hijacking of the process for financial gain by private players like Ernst and Young and Edelweiss, alleged oversight of material facts by the Committee of Creditors (CoC), which included Edelweiss, miscarriage of justice by the NCLT and finally, improper dispensation of the case by the Competition Commission of India (CCI). The insolvency process of HNGIL is now stuck in a series of litigations.
For this article, we would analyze how the Edelweiss group, using a web of entities, could have potentially indulged in the very same irregularities due to which RBI passed strictures against its group entities.
The insolvency proceedings against Hindustan National Glass (HNGIL) was initiated by DBS Bank.
According to the Committee of Creditors of HNG formed by the Resolution Professional in 2022, there were several creditors of CoC, SBI being the largest. The percentages indicated below are their voting percentages in the CoC based on their share of total debt.
i. State Bank of India- 38%
ii. Canara Bank- 5%
iii. Bank of Baroda- 1%
iv. Export-Import Bank of India- 4%
v. DBS Bank Limited -Singapore- 13%
vi. DBS Bank India Limited- 1%
vii. Edelweiss Asset Reconstruction Co. Ltd.- 24%
viii. Standard Chartered Bank- 2%
ix. Life Insurance Corporation of India- 8%
x. Goldman Sachs International Bank- 5%
xi. Rathi Brothers- 0%
Edelweiss Asset Reconstruction Company Limited (EARCL or Edelweiss ARC) purchased the original debt of HNG from the original creditors under the 15:85 arrangement of Security Receipts (SRs). The debt purchased by EARCL was from Axis, HDFC, HSBC, and L&T. The original creditors had lent Rs 3500 crores to HNIG (Rs 3,500 crores of the amount that was loaned to HNG by the original creditors. HNG defaulted on that debt and therefore, went into the insolvency process).
EARCL purchased 24% of that Rs 3,500 debt which amounts to Rs 840 crores. While the debt purchased was Rs 840 crores, the original creditors would have taken a substantial haircut in this arrangement. This means that Edelweiss ARC would have paid far less than Rs 840 crores to purchase the debt which amounts to Rs 840 crores.
To make this simpler – Edelweiss essentially told Axis, HDFC, HSBC, and L&T that they were holding bad debts, which may or may not be realized. Further, the creditors can never be sure at what rate would their debt be realized post the IBC process. So, Edelweiss said that if their combined debt is Rs 100, it would buy the Rs 100 debt for Rs 40. The creditors take that Rs 40 thinking that they would recover at least that much of the total debt and be able to cut their losses.
Security Receipts (SRs) are essentially instruments issued by Asset Reconstruction Companies as consideration for their purchase of distressed assets from banks/ NBFCs – something EARCL used to purchase 24% of the debt from the original creditors of HNG after the latter went into the IBC process. The 15:85 rule essentially means that the Asset Reconstruction Company (ARC) purchases bad loans from the Bank by paying 15% of the value agreed upon and the remaining 85% is purchased by issuing Security Receipts (SRs) to the banks. This 85% is paid to the banks after the loan is realized after the resolution process – essentially – when the insolvent company (HNG in this case) is acquired by another company.
So far, EARCL purchased 24% of the debt from original creditors and paid 15% of it (under the 15:85 rule). The remaining 85% would only be paid after HNG is acquired and the resolution process would be completed.
In the case of HNG, after the issue of Expression of Interest, the RP received 14 bids to acquire HNG. Once the RP received the applications, on the 24th of May 2022, a Request for Resolution Plan was issued and eventually, only three firms expressed interest in purchasing HNG – AGI Greenpac (AGI), International Sugar Corporation (INSCO), and Nirma Chemical. Later, Nirma Chemical dropped out of the process and only two bidders remained – AGI and INSCO. As discussed in the earlier articles, the combination of AGI and HNG would lead to a monopolistic market whereas there were no such constraints if HNG was acquired by INSCO.
The legal jugglery in getting conditional approval for the AGI plan from the CCI, the misrepresentations of the Resolution Professional (RP) in this case, and the subsequent legal case which is still ongoing can be read in detail here and here.
In this article, we will analyze how Edelweiss had a vested interest in HNG being acquired by AGI and how it speaks to the very strictures ordered by RBI.
After acquiring the 24% debt from the original lenders, EARCL became a part of the Committee of Creditors (CoC) of HNG. It is pertinent to note that while EARCL was not an original creditor of HNG at all, after acquiring 24% of the debt, it became the second largest CoC member after SBI which had 38% of the debt.
When both plans by AGI and INSCO for the acquisition of HNG were put to vote to the CoC (after legal chicanery by the RP), the AGI plan was passed with the help of EARCL. At this stage, it is important to remember that the INSCO plan had CCI approval while the AGI plan did not and AGI’s application to CCI under FORM 1 was rejected “Not Valid” on 22nd Oct 2022 Yet, Edelweiss ARC voted in favor of the AGI plan thereby misusing its commercial wisdom.
In the CoC, each credit can vote for multiple plans or no plan at all and therefore, the percentages don’t add up to 100%. Edelweiss ARC, after purchasing the debt amounting to 24% also had one vote. The value of that one combined vote was 24%. However, at the explicit request of Edelweiss ARC, one vote was split into 4 votes by the RP – the combined value of the 4 votes being 24%. One of the votes it cast was against INSCO which resulted in AGI winning by 8.30% difference owing to Edelweiss ARC’s vote. Essentially, Edelweiss ARC cast all 4 votes in favor of AGI Greenpac. However, it cast only 3 votes in favor of INSCO, and therefore, AGI proposal won in the CoC by the 1 vote extra cast in its favor by Edelweiss ARC (EARCL).
Why did Edelweiss ARC (EARCL) have a vested interest in assuring that the AGI plan was passed by the CoC and eventually, leading to the acquisition of HNG
AGI Greenpac, which eventually became the Successful Resolution Applicant owing to the flawed presentation of the plan in the CoC and the oversight by CCI, had produced a letter dated 13th September 2022 as proof of funds for the acquisition of HNG.
In that letter, Edelweiss Alternate Asset Advisors Pvt Ltd (AAAPL) had committed Rs 1,100 crore to AGI Greenpac towards the acquisition of HNG. Edelweiss AAAPL is an AIF entity acting as the ‘Investment Manager of India Special Assets Fund III (a scheme of ISAD III), ISAF III Onshore Fund (a scheme of Edelweiss Credit Opportunities Trust), and EO Special Situations Fund (a scheme of Edelweiss India Special Situations Fund).
One of the key clauses of the funding that Edelweiss AAAPL was providing to AGI Greenpac was that the funding would only be approved if their proposal was approved by the CoC. Edelweiss Alternate Asset Advisors, in their letter, had told AGI that they would fund the acquisition of HNG by AGI only after the CoC approval. At the same time, Edelweiss ARC was a part of the CoC, influencing the decision of the AGI proposal being accepted by voting in their favor.
Further, the rush with which the AGI plan was passed, flouting laws and rules, could be for a specific reason. Edelweiss in its letter to AGI had also mentioned a deadline. It had said that if the AGI plan does not get CoC approval within 60 days, then the offer to fund the acquisition would not hold valid. The strict timeline imposed by Edelweiss ARC on AGI also seems to have played a role in the rush with which the AGI plan was passed by the CoC, owing to the distinguishing vote by EARCL in favor of AGI.
Edelweiss Financial Services Limited owns a 95% stake in Edelweiss AAAPL (AIF which is funding AGI with Rs 1100 crores). Edelweiss Financial Services Limited also has 65% shareholding in Edelweiss ARC (which is a member of CoC as a creditor, voting to ensure AGI’s plan for acquiring HNG gets approved) – either directly or through its subsidiaries.
It is therefore evident that Edelweiss has placed itself uniquely in a position where it is funding the acquisition of HNG by AGI through the AIF entity, and is also the creditor of HNG through its Asset Reconstruction Company after purchasing 24% of the debt from the original creditors.
Roundtripping of money by Edelweiss?
AGI in its resolution plan had undertaken to pay Rs 1851 crores to the CoC. Apart from the Rs 1851 crores of upfront payment to the CoC, it had also undertaken a payment of Rs 356 crores by way of deferred payment, to be paid over 3 years. This was discounted at a rate of 12% to arrive at a Net Present Value (NPV) of Rs 314 crores.
Therefore, while the original debt of HNG was Rs 3,500 crores, the resolution plan by AGI offered to acquire HNG for Rs 2,165 crores – the amount that would be used to pay the creditors of HNG.
Let us reverse engineer the sequence of events to understand how AGI’s deferred payment of INR 356 crore having NPV of INR 314 crore after discounting by 12% as defined in RFRP was funded through proceeds of divestment of the Rishikesh plant of HNGIL.
AGI Greenpac being the second largest container glass manufacturer in the country after HNGIL ought to have known that the combination of HNGIL+AGI would lead to a monopoly in the market thereby ending up in an Appreciable adverse impact on competition (AAEC). It would appear that to sidestep AAEC concerns arising out of the proposed combination affecting the CoC’s voting, AGI applied under FORM 1 (green channel) approval as highlighted in the previous article. FORM 1 was rejected on 22nd Oct 2022 and therefore AGI Greenpac again applied for CCI approval under FORM 2 (which requires detailed investigation) on 3rd November 2022 post-CoC approving its plan on 28th Oct 2022 through the conflicted vote of EARCL in favour of AGI Greenpac.
The Competition Commission of India (CCI), realizing this, issued a show cause notice to AGI on the 10th of February 2023 for potential AAEC. AGI while responding to SCN on 10th March and 14th March 2023 offered to divest the Rishikesh plant of HNGIL (corporate debtor) under a voluntary modification scheme as a remedy to AAEC concerns arising from the combination of AGI+HNGIL.
It seems like without verifying information submitted by AGI on voluntary modification, CCI conditionally approved the proposed combination of AGI-HNGIL subject to fulfillment of the Rishikesh plant.
There were several issues with the show cause notice issued by the CCI, since CCI failed to issue the show cause notice to HNG as well, the conditional approval it gave to the AGI combination plan and the modifications it accepted. An explanation of the probable missteps by the CCI can be read here.
However, it is important to note that the Rishikesh Plant did not belong to AGI at all. In its modified combination plan to CCI, it had undertaken the divestment of a plant that belonged to HNG.
One could theorize that the proceeds that AGI would get from the divestment of the Rishikesh Plant would then be used to acquire HNG and fund the Rs 356 crore over 3 years having NPV of INR 314 crore, to acquire HNG.
Essentially, it would seem like AGI has undertaken to divest a plant owned by HNG and the fund from the said divesture of an asset that does not belong to AGI would be then used by AGI to fund the acquisition of HNG. Documents in our possession show that the liquidation value of the Rishikesh plant which is spread over 11 acres of land is valued by a valuer appointed by RP is in the range of INR 200-300 crore, which indicates that AGI Greenpac is funding deferred payment of INR 314 crore (NPV) and paying to CoC by using proceeds generated from divesting one of the plant/assets which belongs to CoC (HNGIL).
Such dubious transactions raise suspicion on how CoC under the garb of commercial wisdom voted to the resolution plan which was rejected by CCI. Did EARCL vote exclusively in favor of AGI to benefit its AIF entity which was funding AGI Greenpac for said acquisition? That is a matter of investigation which must be carried out.
It is pertinent to note that SBI having the highest vote share of 38% leading the CoC of HNGIL allowed such transactions to go through which resulted in less financial recovery and caused ultimate loss to public money along with other PSU entities like LIC, BoB, etc.
Let’s simplify with a hypothetical scenario. A owes Rs 100 to B. A tells B that out of the Rs 100, A would give B Rs 40 right away. For the other Rs 60, A would sell of B’s phone and pay him back the amount from the proceeds of the sale.
The entire fiasco leads to a playing field that is tilted in the favor of AGI, with the help of Edelweiss, seemingly tarnishing the entire process of IBC.
Moving on, EARCL, which had purchased debt from the original creditors had purchased 24% of the debt under the 15:85 plan. When debt is purchased by an ARC company from original creditors, it is generally at a haircut to the original creditors. Per industry norms, the haircut is a minimum of 40-60%.
This means that if the original credits were owed Rs 100 by AGI, Edelweiss ARC purchased that Rs 100 debt for, say Rs 40 Out of that Rs 40, it paid 15% upfront and the remaining 85% is to be paid when the resolution plan for HNG goes through.
On the other hand, Edelweiss AAAPL funded AGI with Rs 1,100 through Non-Convertible Debentures. This means that at the end of a specified period, Edelweiss AAAPL gets the Rs 1,100 crores back along with the interest on the NCDs.
Graphical representation of the AGI-HNG deal and how Edelweiss is funding the acquisition
So what does Edelweiss make, financially, at the end of the deal? Edelweiss ARC, which is now a part of CoC after purchasing debt at a haircut to original creditors, gets 24% of Rs 3500 crores – which is about Rs 840 crores. Edelweiss ARC had in all probability purchased the debt at 40-60% lower than 840 crores, given that a 40-60% haircut to the original creditor is the industry norm. If we assume that EARCL purchased the debt of Rs 840 crores at a 40-60% haircut to the original creditors, it would mean that it purchased the debt under the 15:85 scheme would be much lower than Rs 840 crores.
In this scenario, when EARCL gets 24% of Rs 2165 crores (which is the AGI proposal), it would get about Rs 519 crores.
Here is how.
At the end of the deal, Edelweiss AAAPL gets the Rs 1,100 crore back with interest (17% to 22%) and Edelweiss ARC gets the Rs 519 crore.
Edelweiss AAAPL would in turn tell authorities that it booked a profit on their transaction. They got the Rs 1,100 back and the interest they got from AGI would be booked at profit while Edelweiss ARC would potentially say that it was a loss-making transaction owing to loss in interest due to delay in the process. Documents in our possession read that CoC has claimed that as of March 2024, CoC has incurred an interest loss of INR 850 crore (EARCL interest loss: 24*850= INR 204 crore) due to a delay in the conclusion of CIRP.
Together, these group entities (EARCL and Edelweiss AAAPL) would transfer the money to Edelweiss Financial Services Ltd. Edelweiss Financial Services (Holding company) then adjusts the “loss-making transaction” and the profit-making transaction, to pay less taxes on both transactions combined in a probable scenario.
Such a structured arrangement of using connected/related entities on both sides of the deal typically in the case of the use of ARC and AIFs creates a huge conflict of interest and thereby encourages a lack of transparency in such deals which potentially are being done to benefit financially on both sides of the deal by circumventing regulations and round tripping of rounds as observed by RBI in its order dated 29th May 2024.
Due to lack of transparency, one entity can show a potential loss in the deal due to haircut being taken as part of CIRP and another entity which is on another side of the deal (EAAAL) is earning interest income by funding successful resolution applicant (in this case AGI Greenpac) is transferring funds from one entity to another entity using CIRP as medium for potential tax evasion.
Such transactions should be investigated by concerned investigation agencies like the Income tax department, SFIO, ED, and other competent agencies to ascertain if there has been tax evasion which is hinted at by RBI in its order dated 29th May 2024.
The other thread that we must consider in this transaction is asking – where is this Rs 519 crores to Edelweiss ARC coming from?
It is essentially coming from the Rs 1,100 crores that Edelweiss AAAPL had extended to AGI to acquire HNG. Because AGI would use the Rs 1,100 extended by Edelweiss AAAPL towards the Rs 2165 crores that it would pay to the CoC to acquire HNG. Edelweiss ARC being a part of CoC would get 24% of that amount.
In the end, it would appear that Edelweiss AAAPL may have roundtripped Rs 519 crores to Edelweiss ARC, channeling it through AGI using IBC as a mechanism.
On the other hand, it is also pertinent to note that Axis Bank was one of the original creditors of HNG. It sold its entire debt to Edelweiss ARC and after having done so, extended Rs 600 crore to AGI to purchase HNG. Why was this done? Essentially, the Rs 600 extended to AGI to acquire HNG would earn interest. That interest would then make up for the haircut that Axis took while selling its debt to Edelweiss ARC at a haircut.
The transaction by Axis Bank is not particularly barred under the IBC, however, the Edelweiss transaction seems to be of the exact nature on which the RBI passed strictures.
The RBI stricture observed that “the group entities were acting in concert, by entering into a series of structured transactions for evergreening stressed exposures of ECL, using the platform of EARCL and connected AIFs, thereby circumventing applicable regulations”.
In the HNG case, Edelweiss seems to have done exactly what the RBI voices its concerns about – circumventing applicable regulations through group entities entering into structured transactions in concert.
Further, the fact that action against Edelweiss was taken by the RBI under the SARFAESI Act also shows concerns regarding money laundering and round-tripping of money. It is pertinent to note that on 31st May 2024, the Deputy Governor at RBI had also raised similar concerns. “Asset reconstruction companies (ARCs) are being misused by “tainted” promoters to enter the bankruptcy process after leading their firms to loan defaults”, deputy governor of Reserve Bank of India M Nageshwar Rao had said.
What becomes important to consider after the entire sequence of events is analyzed is that Edelweiss and its group companies have been pulled up by the RBI. Edelweiss Asset Reconstruction Company Limited (EARCL) has been ordered to cease and desist from the acquisition of financial assets, including security receipts (SRs), and reorganize the existing SRs into senior and subordinate tranches. In the same order, RBI also ordered ECL Finance Ltd (ECL) to cease and desist from undertaking any structured transactions in respect of its wholesale exposures with immediate effect.
With such strictures, it cannot be ignored that the very same entities and group companies of Edelweiss are indeed involved in the HNG case with their involvement leading to an inordinate delay in the IBC process. The HNG case has now been ongoing for over 600 days. As per the CoC of HNG itself, the inordinate delay in the IBC process has resulted in an accumulated interest loss of over Rs 850 crores to the creditors. One could argue that the inordinate delay in the process is a consequence of wrong CoC decisions to back and favor AGI Greenpac as a successful resolution applicant whose resolution plan appears to be full of contingencies. It also resulted in a situation where CCI approval only kicks in after the successful divestment of the Rishikesh plant of HNGIL whereas it can only be divested once AGI’s plan is approved by Adjudicating authority but due to stale mate situation Adjudicating authority cant approve its resolution plan in absence of unconditional approval from CCI which mandatory requirement under IBC and RFRP, as discussed in the previous article.
However, the elements that were overlooked by the CCI were also a result of the involvement of Edelweiss and its group companies. It was Edelweiss that tipped the scale in AGI’s favor in the CoC with its distinguishing vote and the process has been in a freefall ever since. With the hints of Edelweiss hijacking the IBC process, the misrepresentations made by AGI, the potential roundtripping of funds, and the apparent tipping of the scale towards AGI despite INSCO getting the CCI approval raises several questions on the bodies that are meant to regulate financial institutions like Edelweiss. With RBI coming down heavily on Edelweiss, it would seem only right for the RBI to evaluate the role played by Edelweiss in the HNG case and forSEBI to step in and evaluate if it needs to step in to ensure that Edelweiss, and by extension, AGI, needs to be investigated for the potential flouting of regulatory norms in the HNG.
Given the questions which are being raised on the conduct of Edelweiss and its group entities, it would perhaps call for a thorough investigation where potentially, given the RBI order, SEBI could instruct Edelweiss AAAL to rescind its letter dated 13th Sept 2022 committing Rs 1,100 crores to AGI for its acquisition of HNG pending further investigation, at the very least.
Given the gravity of the situation, there are several questions come to mind and need rationalization by the RBI and SEBI.
SEBI:
Taking cognizance of the RBI order will SEBI come down on Edelweiss Group for misusing AIFs connected with other entities of Edelweiss Group as observed in the RBI order dated 29th May 2024?
Has SEBI taken note of the RBI order and initiated any action against Edelweiss Group for potential misuse of AIF platforms?
What are the checks and balances followed by SEBI to protect investors in AIF platforms controlled by Edelweiss Group?
Does SEBI see merit in taking cognizance of the RBI order and further coming out with specific order for restricting participation directly/indirectly by funding AGI Greenpac through its AIF entity called Edelweiss AAAPL, acting as the ‘Investment Manager of India Special Assets Fund III (a scheme of ISAD III), ISAF III Onshore Fund (a scheme of Edelweiss Credit Opportunities Trust) and EO Special Situations Fund (a scheme of Edelweiss India Special Situations Fund)’?
Is there any ongoing investigation against Edelweiss Group for using connected/associated AIFs to enter into structured transactions to circumvent regulations as observed by RBI in its order? If not, why?
Will SEBI restrict Edelweiss Alternate Asset Advisors of India Special Assets Fund III (a scheme of ISAD III), ISAF III Onshore Fund (a scheme of Edelweiss Credit Opportunities Trust), and EO Special Situations Fund (a scheme of Edelweiss India Special Situations Fund) from directly or indirectly funding resolution applicant AGI Greenpac?
Will SEBI issue an interim order to immediately restrict AIF entities connected to Edelweiss from acquiring business?
Will SEBI invoke issue of conflict of Interest in HNGIL CIRP case and restrict AIF entity of Edelweiss Alternate Advisors Limited from directly or indirectly funding AGI Greenpac?
RBI:
RBI has recently restricted various Edelweiss entities from acquiring new business through an order dated 29th May 2024. Will RBI further restrict/examine the role of EARCL in HNGIL insolvency Case?
Will RBI launch an investigation into the role of EARCL and connected AIFs in HNGIL CIRP?
Will RBI further pass supplementary orders to penalize the role of various Edelweiss group entities like EARCL and connected AIFs which are used to circumvent regulations and create circular funding issues in the HNGIL deal, after investigation?
Will RBI investigate Edelweiss Group especially EARCL and connected AIF entities like EAAAL for potential round-tripping of funds through such structured transactions as the HNGIL Insolvency case?
What steps RBI is considering taking to come out with a robust monitoring tool for minimizing such misuse of ARC and AIFs to circumvent regulations and round-tripping of funds?
Will RBI consider recommending SFIO inquiry on Edelweiss Group, especially keeping in mind its own order of 29th May 2024 exercising restrictions on EARCL and connected AIFs?
The IBC process is a robust one that ensures transparency and the interest of creditors as well as the going concern itself. However, as discussed, Edelweiss seems to be misusing the process for financial gains and potential round-tripping of funds, as per the RBI order and the facts of the HNG case. Financial institutions such as Edelweiss, while almost indispensable in the IBC process, must be curtailed and monitored far more thoroughly to ensure the sanctity of the IBC process.
On Sunday, 16th June, a controversy erupted in some building societies in the Mira Road region of Maharashtra’s Mumbai district. Ruckus is said to have erupted after some of the Muslim families residing in JP North Celeste society and Hill Galaxy got goats for slaughter within the society premises. The Hindus were also threatened and women were abused as they strongly protested against animal slaughter inside society premises.
As per the initial reports, the Hindu residents living in the society have submitted a written official complaint to the Kashigaon Police, but no FIR has yet been registered.
OpIndia obtained exclusive information in the given case, which is said to have happened on the evening of 16th June, ahead of the Bakrid festival. One of the Muslim families residing in the JP North Celeste society got goats for slaughter on the occasion of Bakrid. Seeing this, the other Hindu families who reside in the locality objected to the occurrence and requested the concerned family to remove the goats from the society. The Hindu families stated that getting goats into the society was not allowed as per the society’s rules. The Muslim family initially heard the plea but eventually refused to remove the goats from society.
The Hindu residents then called the local Hindu groups to seek support in the incident and also informed the Police. The Hindu members launched the protest and asked the concerned family if they had any permission from the society before getting goats for slaughter inside the premises. To this, the family claimed that they had got the goat into the society but they had no intention to execute the slaughter within the premises.
Police trying to pacify matter at JP North Celeste society (Image obtained by OpIndia)
The Muslim family then was also asked if they had done any medical examination of the goat before getting it into the society. After they said no, the local Hindu groups demanded removal of goats from the society concerning the civic health of the residents. The Hindus also filed an official complaint at the Kashigao Police Station, but the same is yet to be registered as an FIR.
The Hindus in the complaint stated, “The Muslims have illegally got a goat to slaughter in the building premise. For the last 4 days, they have been asked to remove the goats even by the Police authorities, but they have blatantly refused to remove them from society. Several Hindu families reside on the premises and slaughtering an animal in the society premises is not acceptable.”
The complaint further stated that the Muslims who got goats within the society premises submitted an undertaking letter to the police. The undertaking letter stated that there was a mutual agreement signed between the Hindus and the Muslims that allowed the entry of goats into the society’s premises. However, the Hindus stated that no such agreement has been signed and that no slaughter will be allowed in the society premises. “This is all a hidden conspiracy. No such agreement has been signed. Society rules do not permit goat slaughter here. We object to this,” the complaint said.
complaint copy exclusively obtained by OpIndia
A similar incident happened in the society next to JP North Celeste society. A Sikh family on 16th June had organized a small event outside the ‘Hill Galaxy apartment’ while it marked the death anniversary of the fifth Sikh Guru, Guru Arjan Dev who was martyred on May 30, 1606. The Sikh women were distributing ‘sarbat prasadam’ to the locals when they saw some of the Muslims getting 14 goats for alleged slaughter in the society premises. On asking, the Muslims are believed to have lied that they were taking the goats out of society.
However, the Sikh lady objected saying that the Muslim families residing in the society had already got their personal goats for slaughter and now they were getting 4 more extra goats illegally. Eventually, the Muslims also hurled abuses and insulted the Hindu religion. “We will get the goats. Do whatever you can. Hinduo ke m** ki ch**,” the Muslims said, as informed to OpIndia by a local Hindu activist.
“They have been slaughtering animals within the society premises for the last 4 years and we keep on protesting every year. This year also they got the goats and we protested. However, then they abused women and demeaned, and insulted the Hindu religion,” the Sikh woman said while talking to OpIndia, also quoted by local media.
She also said that they sought the police help but were asked to first register an official complaint at the police station for the authorities to take any legal action against the Muslims. “The police were already deployed in the area due to the issue at JP North Celeste society. Some of the police authorities even heard Muslims hurling abuses at women. Later, after a major argument here and insult caused to Hindus, the police were personally called. However, they said that an official complaint was necessary for any action to be taken against the Muslims,” she added.
Later, after a lot of contention, the police detained the accused persons for hurling abuses at the women and assured them that strict action against them would be taken.
Lord Ganesha abused by accused Muslims, Hindus threatened saying goats will be slaughtered within the society
On 17th June, one of the residents of the Hill Galaxy apartments submitted an official complaint to the Kashigaon police station saying that one accused identified as Vajud and his associates insulted Hindus as they protested against the illegal slaughter of the goats in the society. The complaint copy which has been obtained by OpIndia says that the Muslims threatened the Hindus saying they (Muslims) would slaughter the goats within the society premises, come what may. “Do whatever you can. We will slaughter animals here only, within the society premises. Hinduo ke m** ki ch**,” Vajud said as per the complaint which is yet to be registered into an FIR. The raw complaint copy submitted by the Hindu resident has been obtained by OpIndia.
In the complaint, the resident further said that the alleged accused individual also insulted Lord Ganesh. “You people celebrate the Ganesh festival. Do we say anything then? We feel enraged and feel like puking when we see your Lord Ganesha. We will see how you celebrate your Ganesh festival here,” Vajud is said to have threatened the Hindus.
The complaint further stated that he called the builder, (R R Builders owned and looked after by Rasool Shaikh, Irfan Shaikh, Junaid Shaikh, and Jabbar Shaikh) after one of the Muslim residents abused Hindus but to no avail. “The builder said that he was out of the city and that he could not come to resolve the matter. He has also allowed construction of illegal Masjid in the building premise,” the complaint read. As per the local Hindu activist, the complaint will be submitted to the Kashigaon Police today after which an FIR will be registered.
Hindus protesting in the matter (Images obtained by OpIndia)
Construction of illegal Masjid in the building
As per the exclusive information obtained by OpIndia, the builder, Rasool Sheikh initially gave houses to Hindus but later all the remaining houses were booked by the Muslims. At present, in both the societies, JP North Celesta and Hill Galaxy, around 15-20 houses out of 130-150 each belong to Hindus while other more than 100 are occupied by Muslims.
In the Hill Galaxy apartment, the builder Rasool initially had told the residents that the community space would be utilized for the gym or some club, but later a Masjid was constructed there. “The Masjid was constructed 4 years ago here. And we were not asked, nor informed about the Masjid. While booking the flat we were told that the space would be utilized for the gym but now the builder has allowed the construction of a Masjid here. People from other societies also come here to offer Namaz and it becomes uncomfortable for us,” the Sikh woman who was abused by Muslims said.
The first floor area of the building where Rasool has built an illegal Masjid (Images obtained by OpIndia)
Also, the complaint filed to the Police mentioned that there’s always a ruckus happening in the society due to other Muslims coming to the society to offer Namaz in the illegal Masjid built here. “The builder doesn’t listen to us as majority of the families living here are Muslims. There is no society rule, no mutual respect here. Hindus are just harassed every coming day. We want police to look into the matter,” the complaint read.
Hindu activists abused, beaten, and assaulted
While talking to the local media, one of the local Hindu activists stated that the Muslims assaulted the protesting Hindu activists by kicking them as they protested against the slaughter of goats in the society. “This is illegal. Slaughter of animals within the society is illegal. We understand it is your religion and you have complete freedom to follow it. But the society does not allow the slaughter of goats within the premises. There are other religious people who live here and feel uncomfortable and hurt seeing animals slaughtered. They should go to slaughterhouses authorized by BMC and cut the goats, not here in the society,” the Hindu activist said.
The other one meanwhile, talking to OpIndia claimed that these two societies do not have any set rules regarding anything. “They don’t have anything to prove that slaughtering of goats in the society is illegal or is not allowed. Further, it is Muslim majority society so it becomes easy for them to harass Hindus. In the case of JP North, the Muslims have given an undertaking to the police saying that they can get and slaughter the goats in society as a ‘mutual agreement’ has been signed between Hindus and Muslims. But no such agreement has been signed as stated firmly by the Hindu residents,” he said.
The Hindu activist further added that the Police also stated that no action at present can be taken against the individual in the JP North case as there is no livestock policy in the society. “The police have been deployed in the area but they have been asking Hindus to maintain calm. The authorities initially threatened the Hindus saying now they (Muslims) have got 2 goats, and tomorrow they’ll get 10. Do you want that? If not, please maintain calm,” he said.
The police are also said to have told the Hindus that Muslims can keep goats in their houses given there is no livestock policy in the society. However, as per the local reports, the police have assured that no slaughter would take place in the society. Further police action is awaited and underway.
OpIndia called Senior PI Rahul Patil to know the current updates in the case. Unfortunately, no satisfactory answers were provided. Amid this the Islamists are spreading misinformation on social media platforms claiming that the Hindus created a ruckus in the JP North Celesta society on 16th June.
Members of the Bajrang Dal created a ruckus outside the JP North Celeste society on Mira Road in Maharashtra when some Muslim families brought lambs for Eid sacrifice. pic.twitter.com/wSHRd3jLgt
BJP MLA Geeta Jain confirmed the incident, says no slaugter would take place
Meanwhile, BJP MLA from Mira Bhayander region exclusively talked to OpIndia and confirmed the incident saying that goats were brought for illegal slaughter within the society premises. However, she said that the timely intervention of the police an local politicians stopped the execution of slaughter.
She also condemned the incident as she talked about Hindu women being abused at the hands of Muslims. “This is not at all tolerable. People live together in a society and they should respect each other. Those who hurled abuses at the women, those who insulted the Hindu religion have been taken into custody by the police. We demand strict action against the accused persons,” she said.
Further Jain added that these kinds of incidents are repeatedly happening in the Mira Road region where Hindus are harassed or abused for belonging to one particular religion. “We are taking steps to curb such incidents. The frequency of such incidents is increasing and it’s alarming,” she added. In the given case, when asked about the police action, she said that the action is awaited however, the police are trying to pacify the matter calling it an internal issue.
“The Police are cooperating however not to the extent as expected by the Hindu residents or local Hindu activists. Police need to take strict action against the accused persons. They are trying to pacify the matter to avoid any communal occurrence. However, they have assured that no slaughter would take place within the society premises,” she concluded.
MLA Geeta Jain (File photo ANI)
Why do Muslims slaughter animals on Bakrid?
Muslims every year slaughter livestock during the festival of Eid and believe that the tradition was first initiated by the Prophet Muhammed himself. They kill the animal by Halal method and then distribute the meat amongst their family members and others.
As per the reports, in reverence of Prophet Ibrahim’s willingness to sacrifice his son, Ismaeel, as an act of obedience to God’s order, God intervened and provided an animal as a substitute sacrifice, leading to the celebration of Bakrid or Eid-ul-Adha. Muslims commemorate this day every year, honoring Allah via the sacrifice of an animal. It is a three-day event and comprises goat and sheep sacrifices as well as namaz.
Similar incident was reported last year
Mira Road and the Bhayander area in Maharashtra’s Mumbai district have been in the news for all the wrong reasons in the recent past. In June 2023, massive controversy erupted in the capital city of Maharashtra after one of the Muslim families living in a society on Mira Road, Mumbai brought two goats a day ahead of Bakrid (Bakra-eid, Eid-Ul-Adha). The society members happened to refuse the Muslim family to get the goats inside the society premises for slaughter and said that they wouldn’t allow any kind of slaughtering activity within the society premises.
The residents of the society on Mira Road protested and opposed the slaughtering of the goats within the society premises on Bakrid and also chanted Hanuman Chalisa. Some of the people also raised the slogans of ‘Jai Shree Ram’, the videos of which had gone viral in the media.
But the couple took the goats to the apartment after which the police were informed. The police who reached the spot immediately tried to maintain peace and communal harmony and assured the other residents in the society that no slaughtering would take place within the society premises.
The Police also allowed the goats saying that there was no such rule or law against a man getting goats or animals into his house. However, the authorities said that the concerned family would faced arrest if they slaughtered animals in his apartment or within the society premises. The detailed report on this case can be read here and here.
In the second crucial incident that was reported recently in January 2024, the Islamists attacked Hindus with stones, iron rods, sticks, and bamboo, leaving over a dozen people who participated in rallies to commemorate the return of Lord Ram in Ayodhya injured.
In the incident reported from Mira Road, Mumbai, Islamists also disrespected the Hindu religion and hurt the Hindu religious sentiments by tearing flags bearing images of Lord Hanuman. Islamists are also said to have vomited over the flags causing disrespect to the Hindu faith. OpIndia contacted the Police to know the details of the incident. The police confirmed that around 13 persons had been arrested in the case, however, IO Dilip Rakh revealed no information about the accused persons given the sensitivity of the case.
The videos of the incident had gone viral over the internet in which the Islamists could be heard raising the slogans of ‘Allah-hu-Akhbar’ while attacking the cars. They could be seen using iron rods and sticks to attack the Hindus. Even the videos of women being attacked made rounds on social media.
Islamists raised slogans of 'Allah-hu-Akhbar' after cars on #miraroad attacked. They puked on Hindu flags. I have zero courage to share disheartening videos showing Hindu flags dipped in puke. It hurts to see #Hindus disrespected @NiteshNRane's rally is scheduled today. pic.twitter.com/am8vmVkksl
Later the Police and the local administration took cognizance of the event and bulldozed the illegal properties of the Islamists staying on the Mira road who were involved in the stone pelting. As per reports, the illegal construction of the accused persons involved in the Mira Road clash was razed to the ground in the presence of Maharashtra Security Force and Mumbai Police.
This year in February, OpIndia reported 15 cases in which Hindu girls were deliberately trapped by Muslims in the Mira Road region and then raped, and converted to Islam. Hindu activists while talking about the incident had said that the cases of Love Jihad had been on the rise in the region but were allegedly were being ignored by the administration. Detailed reports in this case can be read here.
In the given case, complaint has been filed by the Hindu residents but the FIR is yet to be registered. The Hindu residents await strict police action.
On the 16th of June, India rejected to endorse a joint communique at the Summit on peace in Ukraine held in Switzerland, which said that any peace agreement should be based on Ukraine’s territorial integrity. India while refusing to endorse the “Joint Communique on a Peace Framework” said that “only those options acceptable to both parties can lead to abiding peace.” It must be noted here, that while Ukrainian President Volodomyr Zelenskyy addressed the Summit on Sunday, Russian President Vladimir Putin was not even invited.
Other than India, some BRICS members, including South Africa, Brazil, and the UAE, did not endorse the communique, which was signed by 83 out of 100 participants. Moreover, other countries who refused to sign the communiqué included Saudi Arabia, Armenia, Bahrain, Colombia, Libya, Suriname, Indonesia, and Mexico.
At the summit, India was represented by a secretary-level official and the country did not consider participation at the ministerial level keeping in view, the attempts by the West to keep Russia out.
Notably, India was represented by Pavan Kapoor, MEA Secretary (West). In a statement from Switzerland, he stated that India would only be included in the joint statement if it was brought up without the participation of both parties to the conflict.
“In our view, only those solutions acceptable to both parties can lead to abiding peace. In line with this approach, we have decided to avoid association with the joint communique or any other document emerging from this summit,” Kapoor said.
“We continue to believe that such a peace requires bringing together all stakeholders and a sincere and practical engagement between the two parties to the conflict. Accordingly, we will continue to engage with all stakeholders as well as two parties to the conflict to contribute to all earnest efforts to achieve lasting peace in Ukraine. Our participation in the summit and continued engagement with all stakeholders is with the view of understanding different perspectives, approaches, and options to find a sustainable way forward for a sustainable resolution of the conflict,” Kapoor added.
India also reiterated its approach that the Ukraine-Russia conflict should be resolved through dialogue and diplomacy. “India’s participation in the Summit, as well as in the preceding NSA/Political Director-level meetings based on Ukraine’s Peace Formula, was in line with our consistent approach to facilitate a lasting and peaceful resolution to the conflict through dialogue and diplomacy. We continue to believe that such a resolution requires a sincere and practical engagement between the two parties to the conflict. In this regard, India will continue to remain engaged with all stakeholders as well as both the parties to contribute to all earnest efforts to bring about an early and abiding peace,” the MEA in its official statement said.
India's participation in the summit and continued engagement with all stakeholders is with a view to understanding different perspectives, approaches and options to find a way forward for a sustainable resolution of the conflict…: Pavan Kapoor, Secretary West, MEA #Ukrainehttps://t.co/ogH3nPhXJzpic.twitter.com/kTr2nDu53e
The Western leaders who attended the Summit included US Vice President Kamala Harris, French President Emmanuel Macron, British Prime Minister Rishi Sunak, Canadian Prime Minister Justin Trudeau, and German Chancellor Olaf Scholz. China, although invited, declined to attend the Summit.
What the Joint Communique on a Peace Framework said
It is rather ironic that 80+ countries adopted a joint communique for lasting peace in Ukraine without inviting the other party in the conflict—Russia—to the Summit. It seemed like the only agenda of this communique was to build a consensus that peace in Ukraine must not be at the expense of territorial integrity. The communique appeared to be a bid to bolster Ukraine’s position and garner global support rather than an end to the ongoing conflict.
Since the beginning, the summit aimed to address three areas: Nuclear safety, especially at Russia’s Zaporizhzhia nuclear power plant, humanitarian assistance and the exchange of prisoners of war (PoWs), and global food security, which has been interrupted by food exports from Ukraine due to the conflict.
— Swiss Federal Government (@SwissGov) June 16, 2024
“We reaffirm our commitment to refraining from the threat or use of force against the territorial integrity or political independence of any state, the principles of sovereignty, independence, and territorial integrity of all states, including Ukraine, within their internationally recognised borders, including territorial waters, and the resolution of disputes through peaceful means as principles of international law,” the communique stated.
Notably, India has consistently abstained from all resolutions at the UNSC, UNGA International Atomic Energy Agency and Human Rights Council etc so far that appeared to be biased in approach towards addressing the Ukraine-Russia conflict.
Dialogue and diplomacy the only way to attain peace: How India has been calling for dialogues and peace efforts rather than one-sided bullying
Since the onset of the Russia-Ukraine conflict in 2022, India has consistently advocated for peaceful dialogue and a diplomatic resolution. India’s approach reflects its commitment to maintaining strategic autonomy and balancing its relations with both the West and Russia.
India has constantly emphasised the importance of reaching an amicable resolution through dialogue. Prime Minister Narendra Modi and the Indian External Affairs Ministry have advocated for de-escalation and a return to the negotiation table. India has taken a balanced approach, abstaining from publicly denouncing Russia or openly backing Ukraine. This balanced approach seeks to create an environment conducive to dialogue while avoiding alienating either party.
Unlike the West, which appears to be more concerned with isolating and confronting Russia, India’s calls for peace are generally framed in the broader perspective of maintaining global stability and averting new humanitarian crises.
India dealt effectively with Western pressure to align more closely with Ukraine. By emphasising strategic autonomy, India has asserted its right to make independent foreign policy decisions.
Notably, India has faced economic pressure from the West, particularly regarding sanctions on Russia. However, India has continued to conduct economic transactions with Russia, including Russian seaborne crude oil, citing the need to safeguard its energy interests and economic stability. India has reduced the impact of Western economic coercion by diversifying its energy sources and exploring alternate payment systems to circumvent the impact of the West’s sanctions on Russia.
India has taken a neutral stance, abstaining from openly criticising Russia or unilaterally supporting Ukraine, and has urged both parties to de-escalate tensions and hold direct negotiations. This neutrality aims to create an environment conducive to meaningful discourse.
Time and again, India has asked that all stakeholders, including regional powers and international organisations, participate in negotiations to secure a comprehensive and long-term peace. Indian representatives at all major forums, including the United Nations, BRICS, ASEAN, and the G20, have advocated for amicable dispute resolution rather than simply condemning one party while defending the other.
While India and Russia share strong bilateral ties, Prime Minister Narendra Modi has never shied away from advising the Russian President on the significance of resolving the dispute with Ukraine through dialogue and diplomacy instead of a violent offensive. Back in September 2022, PM Modi told Putin that “this is not an era of war” during a bilateral meeting with Putin on the sidelines of the Shanghai Cooperation Summit in Uzbekistan.
PM Modi and Vladimir Putin on the sidelines of the SCO summit 2022
During the BRICS Summit in 2022, External Affairs Minister S. Jaishankar reiterated the importance of peaceful dialogue and negotiation among the conflicting parties.
In June 2023, PM Modi reiterated his call for dialogue and diplomacy on the situation in Ukraine over a telephonic conversation today with Russian President Vladimir Putin.
During the G7 Summit last year, Prime Minister Modi again called for a peaceful resolution to the conflict, urging the global community to support dialogue and diplomacy efforts between Russia and Ukraine. PM Modi called the Ukraine-Russia conflict an “issue of humanity”.
In March this year, PM Modi made separate phone calls to Putin and Zelenskyy and reiterated that “diplomacy and dialogue is the way forward in resolving the conflict between the two countries. PM Modi also made it clear that India would back any steps for the peaceful resolution of the conflict.
A CNN report citing two senior US administration officials said that outreach from Prime Minister Narendra Modi and other countries played an important role in averting a potential nuclear strike by Russia against Ukraine’s Kyiv.
India has used its position in international organizations, such as the United Nations Security Council (UNSC) during its non-permanent membership, to advocate for dialogue and caution against escalation. At prominent forums like the G20 and BRICS, India has consistently pushed for a collective call for peace, leveraging its influence to bring attention to the need for diplomatic solutions to conflicts.
India’s consistent calls for peaceful dialogue between Russia and Ukraine reflect its commitment to mature diplomacy and a balanced foreign policy. By advocating for negotiations and emphasising the humanitarian and global economic impacts of the conflict, India aims to contribute to a peaceful and stable international order and not become a puppet of the West and blindly supporting its distorted sense of peace and stability.
On multiple occasions, India has underscored its commitment to peace and stability while defending its right to maintain balanced relations. India’s balanced stance has bolstered its image as a responsible global player committed to peace and stability. Its balanced approach has won the respect of both the West and Russia, enhancing its diplomatic clout. Moreover, India’s emphasis on dialogue and negotiation aligns with its broader vision of a multipolar world, where diverse voices contribute to global governance. India, under the Modi government, has been avoiding entanglement in bloc politics and effectively maintaining ties with all major powers to uphold its national interests.
Most importantly, India’s independent stance resonates with many countries in the Global South, who often face similar pressures from major powers. India’s approach serves as a model for balancing great power influences while maintaining sovereignty.
Notably, India’s strategic and economic ties with Russia, including defence cooperation and energy partnerships, are crucial and one-sided approach could jeopardise these relations and India’s security interests.
By rejecting one-sided bullying and calling for inclusive negotiations, India aims to contribute to a fair and lasting resolution. This approach not only aligns with India’s national interests but also reinforces its role as a stabilising force in global politics.
The post-mortem report of Renukaswamy, a fan of well-known Kannada actor Darshan Thoogudeepa, indicated that he was subjected to electric shocks before his death, a report published in India Today said. This revelation has surfaced as authorities delve into the high-profile case, which has sent shockwaves through the Kannada film industry. Among the 17 individuals arrested in connection with Renukaswamy’s murder are Darshan and his fellow actor Pavithra Gowda.
As per police sources quoted by India Today, a recently apprehended suspect, Dhanraj, a cable worker from Mandya, disclosed information about the torture. Allegedly, Dhanraj was summoned to a warehouse in Bengaluru by another suspect, Nandish, where they intended to use an electrical megger to shock Renukaswamy. The police have confiscated the device.
Renukaswamy, an autorickshaw driver and member of actor Darshan’s fan club, was allegedly kidnapped from Chitradurga district on June 8 after sending derogatory messages to Pavithra Gowda. His body was later discovered near Sumanahalli Bridge in Bengaluru.
CCTV footage obtained by India Today TV captures the moments before Renukaswamy’s abduction. The suspects reportedly started following him in an autorickshaw at 9:30 AM as he left his home. The autorickshaw was seen on a surveillance camera at 9:41 AM passing a petrol pump, with an accomplice trailing on a white scooter.
A car reportedly used in the abduction was seized on Sunday. According to a PTI report, the vehicle was found parked at a house in Ayyanahalli village in Chitradurga district. One of the suspects, Ravi, allegedly left the car there. Several items were confiscated from the vehicle following the interrogation of Ravi’s family.
Darshan, known as the “Challenging Star,” along with 12 associates, was initially arrested last Tuesday (June 11). On Saturday, police custody for Darshan, Gowda, and 11 others was extended as the investigation continues.
At least five passengers were killed and over 20 people sustained injuries after a goods train rammed into Kanchenjunga Express train in West Bengal’s Darjeeling district on Monday, police said.
“Five passengers have died and 20-25 injured in the accident. The situation is serious. The incident occurred when a goods train rammed into Kanchenjunga Express,” said Abhishek Roy, Additional Superintendant of Police (SP) Darjeeling Police.
Kanchanjungha Express which runs between Silchar in Assam to Sealdah in Kolkata was Sealdah bound when a goods train hit it from behind near Rangapani station, located close to New Jalpaiguri in North Bengal, according to Sabyasachi De, Chief Public Relations Officer – Northeast Frontier Railway (NFR).
Union Railway Minister Ashwini Vaishnaw said rescue operations are being carried out on a war footing.
“Unfortunate accident in NFR zone. Rescue operations going on at war footing. Railways, NDRF and SDRF are working in close coordination. The injured are being shifted to the hospital. Senior officials have reached the site,” Vaishnaw posted on X.
Sealdah Eastern Railway has set up a control desk at Rangapani station.
Visuals from the site showed a wagon of Kanchenjunga Express train suspended in the air.
Sources in the Railways said that the goods container train overshot the signal and hit the rear parcel coach of the Kanchanjunga Express.
The train has two parcels and one coach for the guard.
Personnel of the National Disaster Response Force (NDRF) and Divisional Railway officials have reached the accident site. A total of 15 ambulances and medical equipment have also reached the site of the mishap.
Officials are reviewing the situation, the Railway officials said.
The accident took place at Rangapani area in the Katihar Railway Division ahead of New Jalpaiguri Junction at around 8:45 am today.
Earlier in the day, West Bengal Chief Minister Mamata Banerjee said that the accident took place in Phansidewa area of Darjeeling district.
“Shocked to learn, just now, about a tragic train accident, in Phansidewa area of Darjeeling district. While details are awaited, Kanchenjunga Express has reportedly been hit by a goods train,” Mamata Banerjee said in a post on X.
“The DM, SP, doctors, ambulances and disaster teams have been rushed to the site for rescue, recovery, medical assistance. Action on war-footing initiated,” the West Bengal chief minister said.
(This news report is published from a syndicated feed. Except for the headline, the content has not been written or edited by OpIndia staff)
China has been systematically undermining democracy and promoting its authoritarian, communist government model in developing nations through its ‘business training’ programmes.
The revelations were made in a detailed report titled “‘A Global South with Chinese Characteristics” and published by the American think-tank Atlantic Council on Thursday (13th June).
According to the report, the Ministry of Commerce of the Chinese government conducted 795 ‘online seminars’ for foreign government officials in the Global South between 2021 and 2022
Screengrab of the report by the Atlantic Council
The sinister objective behind those seminars, funded by the Chinese Communist Party, was to amplify the narrative that autocratic governance is essential for economic development.
The Atlantic Council accessed 1691 files belonging to the Academy for International Business Officials (AIBO) of China’s Ministry of Commerce and found that a whopping 21,123 foreign governmental officials attended these online seminars between 2021 and 2022.
According to the American think tank, the training programs were categorised into 6 groups based on the nature of the content.
This includes ”clearly authoritarian, ‘potentially authoritarian, ‘infrastructure and resource access’, ‘information operation access’, ‘security access’ and ‘others.’ The report emphasised,
“The first step in addressing these dynamics is to recognize the extent of the problem, conducting further studies such as this one on the nature of various PRC efforts to promote its model and then, most critically, determining the actual impact of these efforts in increasing developing countries’ acceptance, adaptation, and implementation of authoritarian governance practices.
Local interests, political context, and feasibility of adaptation are all reasonable major factors that determine whether a government will ultimately import authoritarian practices and narratives. Only once the effectiveness of various PRC activities has been determined should significant effort be directed at developing tailored measures to counter them, thereby avoiding unnecessary expenditure of very limited resources on addressing the large and expanding number of CCP efforts across countries.“
The Atlantic Council identified 14 key training programmes from the full dataset of 795 Chinese government files. These include:
Marine geologic survey and coastal protection training class
Seminar on blockchain and information security technology for developing countries
Seminar on enhancing university governance for developing countries (online)
Seminar on ethnic policies and practices for Belt and Road countries
Seminar on international application of Beidou and remote sensing
Seminar on inviting heads of foreign volunteer organizations to China
Seminar on planning capability of safe city for African countries
Seminar on population and development program for developing countries
Seminar on port management for Central and Eastern European countries
Seminar on national governance for presidential advisers of developing countries
Seminar on new-developing urban governance for developing countries
Seminar on new media for Belt and Road countries
Seminar on social security and social welfare for developing countries
Seminar for think tank scholars of the Belt and Road countries
The report further added, –
“The findings catalogued in this report underscore that the PRC is engaged in a concerted effort to promote authoritarian governance across the developing world, using its own economic success as the primary argument for why countries need not adopt “Western” democratic practices to achieve their development goals. This is occurring across Chinese training programs in Global South countries, regardless of the often-unrelated subjects purportedly addressed. While Beijing often suggests that countries should pursue approaches specific to their own local contexts, rather than adopting the Chinese model completely, PRC trainings clearly highlight aspects of its authoritarian model as central to the blueprint of successful development that others can emulate.“
The Atlantic Council concluded,
“China’s promotion of authoritarian governance and undermining of support for democratic practices and principles is likely to increase across the Global South, with Beijing further scaling up the type of trainings documented in this report. This effort is integral to the PRC’s drive to transform a global order currently predicated on the centrality of democracy and individual rights to one more “values-agnostic” and thus suited to China’s rise under authoritarian CCP rule. To counter this effort, countries across the Global South should be encouraged to make independent, informed decisions about their own development path, with access to objective information about China’s political system, domestic affairs, and economic trajectory. Despite democracy’s evident flaws, it remains the system of governance overwhelmingly preferred by publics around the world.25 Beijing’s revisionist efforts to popularize autocracy will fail if citizens in the Global South have the freedom and information to determine the sort of government under which they want to live.”
China using fake accounts to pose as Sikhs, peddle pro-Khalistani propaganda and separatism
Earlier in May, Meta published its ‘Adversarial Threat Report’ for the first quarter of 2024. It found that China is using bots to stir up Khalistani extremism in India.
In its 33-page report, the parent company of Facebookstated that it had removed 37 Facebook accounts, 9 Instagram accounts, 13 Facebook pages and 5 Groups – all of which originated in China.
One or more of these pages had 2700 followers. Some of the groups had 1,300 members and less than 100 followers were connected to the purged Instagram handles.
These accounts were at the helm of promoting Khalistani extremism and Sikh separatism in countries such as India, Australia, Canada, New Zealand, Pakistan, Nigeria and the United Kingdom.
On Page 7 of the report, Meta noted that the pro-Khalistani propaganda by China was not limited to Facebook alone. The Chinese Communist Party (CCP) bots also used social media platforms like X (formerly Twitter) and Telegram.
“This operation used compromised and fake accounts – some of which were detected and disabled by our automated systems prior to our investigation – to pose as Sikhs, post content and manage Pages and Groups,” the tech company noted in its report.
Operation K to stir pro-Khalistani activities in Australia and NewZealand The fake accounts, which were being operated from China, attempted to create a “fictitious activist movement called Operation K” and stir Khalistani activities in Australia and New Zealand. However, the disinformation campaign was thwarted by Meta.
“We found and removed this activity early, before it was able to build an audience among authentic communities. They posted primarily in English and Hindi about news and current events, including images likely manipulated by photo editing tools or generated by artificial intelligence, in addition to posts about floods in the Punjab region, the Sikh community worldwide, the Khalistan independence movement, the assassination of Hardeep Singh Nijjar, a pro-Khalistan independence activist in Canada, and criticism of the Indian government,” the report read.
The revelations were made during Meta’s internal investigation into ‘coordinated inauthentic behaviour (CIB)’ in the region.
