From the record before us, it does not appear that the procedure contemplated under Order 8 of the Code is followed in the instant case. From a high of 4467 in the last week of April, the BSE Sensex crashed to sub-2600 by August. 40. Due to rampant violations in securities trading, 'holes' had developed in the investment portfolio of banks. Old-timers say the bear cartel, aware of Harshad’s problems, prolonged the strike by making other demands. In its first report, the committee quantified the scam amount at Rs 4,300 crore involving units of the Unit Trust of India (UTI). Unfortunately, even the Custodian himself did not choose to prove the various letters alleged to have been received by him from various parties involved in the transaction, though the entire written statement of the Custodian is based on such correspondence. Vodafone Idea 10.75 0.85. It is well settled by a long line of judicial authority that the findings of even a statutory commission appointed under the Commissions of Inquiry Act, 1952 are not enforceable proprio vigore as held in Ram Krishna Dalmia v. Justice S.R Tendolkar AIR 1958 SC 538 and the statements made before such Commission are expressly made inadmissible in any subsequent proceedings civil or criminal. Initially the plaintiff issued a BR in favour of Canfina without actually delivering the bonds though the plaintiff received the sale price of the bonds. 2 of 1995. That prevented Harshad from being able to sell a part of his holdings and repay SBI. After thorough investigation, the committee reported the scam of INR 4025 crore rupees. This involved the actions of one major player by the name of Ketan Parekh. In the past, Janakiraman’s classes have worked on marketing plans for a software company, a food company and an after-school program. In our considered view the report of the Janakiraman Committee is not evidence within the meaning of Evidence Act which the Special Court is bound to follow. DMK leader and Member of Parliament K. Kanimozhi called on ailing former Chief Minister R.V. In April, the RBI found a shortfall of Rs 649 crore in SBI’s investment portfolio. Similarly, some banks would find themselves short of securities to meet SLR requirements. According to him, the entire transaction in question occurred in the following manner: 20. 3. By an order dated 17-4-1995, the Special Court directed the plaintiff Bank to elect one of the two fora for pursuing its litigation. Clearly, the money from the banking system was flooding the stock market and driving stock prices higher. 71. The rest were financing deals. Overview of the Front-of-Pack (FOP). Long correspondence ensued between the plaintiff and the first defendant Bank. The report of such a committee in our view can at best be the opinion of the Committee based on its own examination of the records of the various banks (including the plaintiff and the first defendant) and the statements recorded (by the Committee) of the various persons examined by the Committee. Justice A.P. * Enter a valid Journal (must It is pertinent to note that Defendants 1, 2 and 5 pleaded and Defendants 1 and 2 adduced oral evidence to prove that the plaintiff incurred an obligation to deliver IRFC bonds of face value Rs 100 crores on 3-1-1992 to Canfina Ltd. Tiwari, Ninad Laud, Mahesh Agarwal, E.C Agarwal, Ms Megha Mehta Agrawal, Abhinav Agarwal, Anirudh Sharma, Palash Kanwar, Respondent-in-Person, Amit Yadav, Shishir Deshpande, Kaushal Narayan Mishra, Ms Sujata Kurdukar and Subramonium Prasad, Advocates) for the appearing parties. Coronavirus News Highlights: Punjab to lift night curfew from... Banks buying securities would not insist on delivery within the 90-day limit, and this led to BRs being valid indefinitely. 62. The Reserve Bank of India formed Janakiraman Committee in 1992 to provide a comprehensive picture of the scam. Committee of Independent Directors News and Updates from The Economictimes.com. Bank of Karad and Metropolitan Co-operative Bank, which had issued BRs and SGL forms without any underlying securities, suffered massive losses and went under. The special scrutiny conducted by RBI in 1989 and 1990 revealed gross irregularities in the PMS operations by the foreign banks and non-compliance of RBI circulars. The Special Court held as follows: 22. But buyers had the option to roll over their position to the next settlement cycle, if they could find somebody to finance it. 54. S.R.Janakiraman (born 12 July 1928) is a Carnatic vocalist and a musicologist. Under the Code of Civil Procedure, 1908 (for short “the Code”), such a decree in favour of a defendant is permissible in a case where the defendant either pleads a set-off or makes a counterclaim as contemplated under Order 8 of the Code. It is recorded by the judgment under appeal at para 45: 50. By clicking on this tab, you are expressly stating that you were one of the attorneys appearing in this matter. 14. contains alphabet), State Bank Of India Through General Manager v. National Housing Bank And Others. Consequently, a preliminary question regarding the forum which had jurisdiction to adjudicate the dispute which is the subject-matter of the two suits came to be considered by the Hon'ble Justice Variava. S. Janakiraman Executive Director, President and Chief Technology Officer . Justice A.P. We must also record our disapproval of the finding recorded by the Special Court that the plaintiff did not suppress the truth. 3647 of 1999 being aggrieved by the judgment of the Special Court insofar as it: 28. The record of government securities held by banks was maintained by the RBI’s Public Debt Office in what was known as the Securities General Ledger (SGL). Even when PSUs were able to raise money without help from banks, they needed to generate enough returns to be able to pay interest to the bondholders. The Committee was called the Janakiraman Committee. The said receipt was subsequently returned discharged by Canfina on receipt of the abovementioned IRFC bonds. View Ankita Janakiraman’s profile on LinkedIn, the world’s largest professional community. Apart from the problem of the plaintiff not adducing any evidence, it is rather difficult to understand the process followed by the Special Court to reach the conclusion that the plaintiff is entitled to the decree as prayed for and at the same time not entitled to retain the entire amount but should share a part of it with the second defendant. The other key rule was that BRs were valid up to a maximum of 90 days. On the other hand, the dispute such as the one on hand, where the contesting parties are either organs of the State or its instrumentalities, is better resolved through a Committee of Secretaries of the Government of India or the States, as the case may be, as directed by this Court on more than one occasion. 8. Neither of the banks explained the genesis of such practice. Between April 1990 and December 1992, PSUs invested around Rs 36,000 crore in the portfolio management services (PMS) schemes run by foreign banks and NBFC arms of nationalized banks. Thanks to the banking funds at his disposal, Harshad was able to carry forward his buy positions, and push prices even higher. While the series has been praised for its largely accurate portrayal of the events that transpired -- down to a fleeting mention of the fiscal deficit in the Budget 1986 speech, as is shown when a character is watching it on TV -- there are only so many details that it can capture given the scope of the medium. We may not be far from truth if we draw an inference that such payments were obviously made on the unwritten instructions by somebody in the plaintiff Bank. Once the buyer got delivery of the securities, the BR would no longer be valid. 69. This meant there both a buyer and a seller, a prerequisite for any market. The RBI created a committee to investigate the matter. It is only on the instructions of the appropriate higher authorities, cheques such as the one in question, are prepared. In our opinion the suit is a sheer abuse of the legal process. The plaintiff preferred Civil Appeal No. Work from Home Hits Office Demand, Net Leasing of Office Space Dips 44% in 2020: Report. A thinly veiled scorn for the orders of this Court. A few of these violations were noticed by the Ministry of Finance as early as 1986, according to an MoF representative’s statement to the JPC. The Special Court Act was made in the aftermath of a scandal in the stock market in the year 1991–1992 when “large-scale irregularities and malpractices were noticed in both government and other securities, indulged in by some brokers in collusion with the employees of various banks and financial institutions”.1. The securities scandal of 1992, with Harshad Mehta as its main player, is back in collective consciousness nearly three decades after it was perpetrated, thanks to Sony LIV's popular web series Scam 1992. In our considered view the report of the Janakiraman Committee is not evidence within the meaning of Evidence Act which the Special Court is bound to follow." 211 of 1995) and another before the Special Court established under Act 27 of 1992 being Suit No. India’s foreign exchange situation was quite fragile in the late 80s and early 90s. In the same breath the plaintiff also added “in any case is liable to repay the amount on the basis of moneys had and received without any consideration”. 2. by the plaintiff Bank to Standard Chartered Bank except the Janakiraman Committee Report and the correspondence which is neither proved nor the content of the correspondence is explained. The first defendant also took a stand that the cheque was delivered to the first defendant under a covering letter dated 3-1-1992 of Harshad S. Mehta containing instructions to the first defendant to make certain payments as detailed in the letter.8. The Trees Minus the Forest Janakiraman Reports on Banking Scam THE committee constituted by the Reserve Bank of India (RBI) under the chairmanship of R Janakiraman to enquire into the massive financial scandal in banks and financial institutions has rung the curtain down on its labours after releasing two further reports simultaneously. Securities) Act 27 of 1992 (hereinafter referred to as the Special Court Act). The Committee was called the Janakiraman Committee. The Sarkaria Commission's charter was to examine the relationship and balance of power between state and central governments in the country and suggest changes within the framework of Constitution of India. The scandal exposes the shortcomings and loopholes in the administration of banking sector of this country, more particularly, the State-owned/controlled banks. Bank A, which temporarily required cash to meet the CRR rule, would sell securities to Bank B. The plaintiff, therefore, addressed letters to the first defendant drawing its attention to the said fact and request the first defendant for delivery of BR/securities or for return of the said amount.”. Click here to remove this judgment from your profile. Harshad is said to have approached a foreign bank with close ties to the bear cartel, offering a part of his holdings at a discount. The plaintiffs were aware of the stand of the first defendant in the light of the correspondence that took place between the first defendant and the plaintiff prior to the filing of the suit. In Spite of the recommendations made by the Janakiraman Committee Report in 1992 to prevent security scams from happening in the future another security market took place in 2001. In 1992, the RBI formed the Janakiraman Committee to investigate into the matter. Corporate Governance Report ... /Committee Membership(s) held by Directors in companies other than Mindtree, along with age of the Director, date of appointment to the Board of Mindtree and Director Identification Number (DIN) are ... Mr. S.Janakiraman Executive Director, President & CTO 875,137 Basel Committee: Banking Supervision 6. The Committee would like to thank Shri R. Janakiraman, Executive Director, Reserve Bank of India for his active participation during the deliberations of the Committee. Harshad Mehta was a stock market player as well as a money market broker. Under Section 9-A(1) of the Act10, the Special Court has all jurisdiction to adjudicate any matter or claim arising out of a transaction in securities entered into during the period specified in the said section in which a notified person is involved in whatever capacity. Mr. Janakiraman is undergoing treatment at a private hospital for age related treatment. Mr. A. Janakiraman 100,000 Mr. P. Shankar 60,000 d) Details of the Shares held by Non-Executive Directors as on 31/3/2011 ... compliances which are placed before the Audit Committee, which is a detailed report. Further, the said witness also spoke to the facts pleaded by the second defendant that the plaintiff had issued a BR to Canfina acknowledging the receipt of the payment made by Canfina towards the price of the IRFC bonds agreed to be sold by the plaintiff and the said BR was returned discharged by Canfina to the plaintiff in view of the fact that Canfina had received the delivery of the IRFC bonds of face value Rs 100 crores. The corporates often use the funds to buy shares of group companies. Janakiraman Committee : To investigate the security transactions of the bank JS Mathur committee : To revise Newspaper Advertisement Rates. 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