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Thursday, November 23, 2017

Is DSK sociopathic liar ?

DSK is a liar.

He doesn’t shy away from lying anywhere. Clients and media are his soft targets but he doesn’t hesitate to lie in courts also.

But is he sociopathic liar?

Sociopathic liars are pathological liars. They lie to gain something. Worse yet, their lying is usually calculated and cunning.

A sociopath doesn’t care who their lies affect, as long as in the end the lie fits their purpose and they get what they want.

Pathological liars know the difference between right and wrong, and they consciously recognize that lying is wrong.

Unfortunately, they don’t really care. In fact, they are so good at lying, many times they become their own lie.

Let us see some examples related to DSK.

image courtsey datingasociopath.com

As admitted by DSK only media is his weak point.

DSK and his wife’s anticipatory bail are pending in Bombay high court and next hearing is on 23rd November.

High court has given both reliefs from arrest under certain condition that they shall not tamper with the evidence and/or pressurize or threaten the prosecution witnesses.

Even then they not only hold press conference, they made misleading statement about their assets and liabilities and also appealed investors.

Addressing a press conference, DSK said the total assets of the firm stood at Rs 9,000 crore whereas the dues including the fixed-deposit (FD) returns are "merely" Rs 1500 crore.

He revealed that a foreign investor has shown willingness to form a joint venture with the firm in the ambitious DSK Dream City Project, worth Rs 13,000 crore.

Aren’t these statements a part of tactics to pressurize or threaten investors and contempt of court?

DSK also shared video of his press conference on social media.

DSK never shy away from making misleading statement in court.

In an application filed in Pune court they stated that things were perfect for the DSK Group till 2008, when the Lehman Brothers declared bankruptcy and European markets crashed. Just before the two developments, the couple stated that they had tied up with an Israel based GCC Ltd for developing a special economic zone (SEZ) spread over 300 acres.

However this was completely untrue.

Actually DSK had got in-principal approval for SEZ in June 2007 however in was never totally approved.

In fact in 38th meeting of the SEZ Board of Approval DSK’s SEZ proposal was rejected on 11th February 2010.

The proposal of SEZ was rejected because during inspection a number of issues arose such as the contiguity of the SEZ had been broken, presence of an irrigation canal.

Then in April 2010 SEZ proposal was withdrawn by DSK .

However while talking to press DSK had said that new norms of the SEZ were not conducive to the company and hence they withdrawn.

It is another thing that DSK had purchased all lands claiming for SEZ / Township purpose.

http://indianexpress.com/article/cities/pune/dsk-pulls-out-of-phursungi-sez-plan/

Then in 2012 they obtained approval for Special Township.

Thereafter DSK launched Dream City, raised FDs for it, obtained construction loan, accepted flat bookings.

Lehman Brothers declared bankruptcy and European markets crashed in September 2008, then how come these two factors did affect dream city project?

DSK’s press conference (PC) was also full of lies.

Only positive outcome of this PC was kin took on DSK.

In PC DSK referred to several internal documents of the group that were uploaded on blogs that he believed led to panic among investors.

When media asked him about answering the issues rose on this blog he said Vijay Kumbhar didn’t pick the documents from our drawer all the documents are in public domain.

However immediately after this DSK said that my brothe’s son-in-law, Kedar Vanjpe is responsible for all this mess. He used to work as the executive director in the company. We bought the land on his wife’s name, who is my niece. He was disturbed since my son (Shirish) joined the company and he provided information to Vijay Kumbhar.

As soon as word got out that DSK was accusing Vanjpe of sabotage vanjpe demanded a public apology from DSK, stating that he will initiate legal action if DSK fails to do so.

Immediately after Vanjpe’s challenge DSK’s son in law Sanjay Deshpande slapped some question to DSK.

1. DSK sir have you asked Kedar Vanjape and has he allowed you to buy dream city land on name of his wife ? Or even your other relatives?

2. Does Kedar Vanjpe told various banks of financial institutes to publish acquisition notices to your group companies which has been failed to repay huge loan amounts? Every day newspapers are carrying it.

3. Does Kedar Vanjpe controls all IGR or SEBI web site as you say Kedar gave all documents to Mr.Kumbhar while Kumbhar’s blog says all documents he has got from web sites of government institutes?

4. Does your current financial problems are due to Kedar Vanjape?

5. You said Kedar Vanjpe left DSK group because of your son but Mr.Shirish joined DSK group in 2010 while Kedar left in 2008.

6. Do you mean Kedar Vanjpe is the cause for closing down your toyota dealership? Your sites are dead since last 2 years; huge loans/ FD have been taken on the companies which have no projects on them, your sharing of commissions in crores of rupees in your family under name of flat selling n such services & all these decisions r by Kedar Vanjpe?

7. You said in press conference you don’t use investors or brokers money but but share profits with FD holders then is it Kedar who gave brokerage documents on name of Hemanti Phadke and her partnership companies   by DSKDL which are signed by Hemanti Kulkarni who is director of public limited & is it Kedar Vanjpe who exposed both are same person only?

8. is it Kedar Vanjpe and not your CA who wrote to SEBI that your company is doing bad business and in no position to repay the debenture money?

Sanjay Deshpande further advised DSK that instead blaming some Vanjpe , Kumbhar or Karandikar for your failures or even our PM Modi for demonetization and bad state of real estate, accept that you are a bad businessman & you fooled many till now under your image of DSK and when that mask is torn and your true face is exposed you are blaming others for showing your reality!! instead of doing such drama tell people your actual loans as well real condition of your assets and be ready for the punishment of your sins, like a real man which off-course you are not!!

Sanjay Deshpande and Kedar Vanjpe almost confirmed all the allegation of money siphoning, forged signs, shell companies , murky deals made in my earlier post “ DSKDL a public limited company or criminal enterprise ?”

It is not the case that DSK cheated only relatives. He didn’t spare anybody including Government agencies, his customers, suppliers’ and banks also .

He always discovered new Ideas of lying and cheating.

Recently an advertisement was published in newspaper by Aditya Birla Finance Company ( ABFL)

The advertisement claimed that some flats in Meghmalhar scheme at Dhayari were mortgaged to the company by DSK . However company found that DSK was trying to sell those flats. Company also warned any transaction towards thos flats would be illegal.

In April 2016 DSK mortgaged 30 unsold flats and 52 car parkings of Q wing of DSK Vishva Meghmalhar scheme to ABFL for 14.92 crores . The flat numbers were 101,102,104,201,202,302, 501, 502, 503,504,601,602,603, 604, 701,702,703, 704 801,802,804, 9 01, 9 02, 9 03, 9 04,1003,1004 ,1104, 1203,1204.

Even though DSK knew that flats were already mortgaged he sold almost 18 flats to the buyers.

In April 2016 DSK mortgaged 30 unsold flats and 52 car parkings

That was not all.

Perhaps due to non-repayment of the loan or for some other reason in June 2017 for more security ABFL asked three more flats as mortgage.

Surprisingly, despite knowing that many of them have sold them to others, DSK has mortgaged three more flats along with the earlier ones.

despite knowing that many of them have sold them to others,

See another form of lying

The construction of DSK’s Gold leaf project at Baner is at standstill since November 2015 ,.

DSK mortgaged flat at 6th floor of this building for 3.42. crores

Earlier in June 2016, Deepak Sakharam Kulkarni alias DSK bought a 3220 square foot flat DKDL company in June 2016 for a price of Rs. 14186 per sq ft at a price of 4,56,80000 rupees (4 crore rupees eighty thousand rupees) from own company.

Actually market or ready reckoner rate at this place is not more 6000 / per sq ft

flat for a price of Rs. 14186 per sq ft at a price of 4,56,80000 rupees

However later in September 2016 DSK sold 1954 square feet flat at the rate of Rs 7272 per square feet to other buyers. Before June 2016 rates were same or less than this.

For others rate was 7272 rs per sq ft

Then why would have DSK bought flat at the rate of twice the prevailing rate?

The reason was simple. DSK didn’t want flat , he wanted money.

That’s why immediately after seven days he mortgaged this flat to syndicate bank for 3.42 crore rupees and bank too disbursed the loan without taking into consideration prevailing market or ready reckoner rates.

Flat was mortgaged at for 3.42 crore

Only DSK can do the bargain for non-existent items.

DSK has already conveyed large part of DSK Vishwa to the Nyaty Builders.

Now more parts of the DSK Vishwa have also been given to the Sakala Builders.

DSK has Conveyed 65,000 square feet of 54,000 sq ft and 11340 sq ft space to the Sakala Builders by the two transactions

And you know when did this transactions happen?

On the same day when FIR was lodged against DSK under MPID act i.e on 28th October 2017.

While the case was being registered at Shivaji nagar Police station same time at the same time documents were lodged for registration and later on signed on 29^th and 31^st October.

Now what would you say ?

Related Stories

Is DSK exploiting Investors, FD holders and flat buyers ?

DSKDL public Limited Company or Criminal Enterprise?

For More on DSKDL scam read Marathi blogs here

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Wednesday, August 9, 2017

DSKDL public Limited Company or Criminal Enterprise?

Do you remember a song ‘Aisa Koi Saga Nahi, Jisko Thaga Nahi’ from hindi movie ‘Bunty Aur Babli’ starred by Amitabh, Abhishek bacchan and Rani Mukharjee ?

Adopting the names of 'Bunty' and 'Babli', , Abhishek and Rani successfully pull off con after con, looting people dressed as local guides, religious priests, health inspectors, business partners, etc.

The reason behind remembering Bunty and Babli was, after my last post lot of people called, some emailed and some met personally and shared their experiences with me about D.S Kulkarni ( DSK) and his so called empire.

DSK officially formed D.S.Kulkarni developers limited ( DSKDL) in 1991. However what was not there in DSKDL?

There were forged signatures, murky deals, shell firms, money siphoning, duel identities, conspiracy and everything that needed to con investors, banks and government authorities.

Only the thing that was not there was professional attitude!

Then how did DSKDL survived so many years?

The Reason is simple.

DSK is best actor, has fantastic oratory skills and ability to manage everybody with power of money.

On this capital he built good image in the society.

The relatives and staff who realised consequences of association with DSKDL left it immediately. Others either became party to his actions or remained mute spectators

DSKDL’s activities may be divided in two parts pre and post 2006 ie. Pre public issue

Pre public issue and after becoming public limited company they formed lot of private limited companies and partnership firms.

Money Siphoning

These companies were mostly dominated by Hemanti Nilakanth Phadke ( HNP) and her two sisters, Anuradha Purandare and Vaijayanti Mudgal .

They managed to siphon of DSKDL’s crores of rupees to these firms successfully.

In may last post we saw how they DSKDL paid crores of rupees to D.S.K and company for mere consent for land deals.

Another way of direct money siphoning was, they use to purchase land in the name of DSK’s relatives and later on DSKDL would purchase it from him/her.

And then they use to withdraw amount paid to that relative by DSKDL

However that didn’t come to light because DSK successfully managed to reshuffle the funds and due to DSK’s image funds were literally pouring in DSKDL.

Shell Companies

Then they started taking Fixed Deposits (FD) for the companies that were not allowed to take FDs by Reserve Bank Of India (RBI) .

These companies were DSK and Sons, D.S.kulkarni and brothers, D.S.Kulkarni and associates , DSK Enterprises, DSK & Asso, DSK constructions, etc.

Investors and FD holders were not even aware that they were investing in the companies who have no business in reality and exist only on paper. These all were partnership firms.

The success in money siphoning business led them to go for public Issue.

Misleading Information + Dual Identities

Hemanti Nilkanth Phadke changed her name to Hemanti Deepak Kulkarni in 1989

The information provided in offer brochure of public issue itself raises doubts about very intentions of the promoters.

Along with DSK his then wife Jyoti Kulkarni and Hemanti Phadke were promoters of public issue.

However they didnt mention that HNP and Hemanti Deepak Kulkarni were the same person.

And in same document in financial information of the group companies, HDK’s name appears as a partner in partnership firms Amit & company and Gharkul .HNP’s name appears in many other companies.

What was the intention behind showing same persons different identities in offer document?

HNP was an employee in DSk’s firm. She changed her name from Hemanti Nilkanth Phadke (HNP) to Hemanti Deepak Kulkarni (HDK) in 1989. DSKDL was incorporated in 1991.

However she kept her both the identities alive in transactions of DSKDL .She was holding shares in both the names. The reason behind that only her or DSK can tell.

Forged Signatures

In 2001 Hemanti Phadke and Sanjay Deshpande signed on this share

In DSKDL forging signatures was not a serious affair.

The share certificate issued in 2001 is signe by Sanjay Deshpande ( DSK’s son in law) as authorized signatory.

when the same share certificate was reissued for some reason, once again Sanjay Deshpande’s signature appears there.

However Sanjay Deshpande had left DSKDL in 2004.

Then who forged his signatures?

Nobody other than autorised signatories of DSKDL could forge Sanjay Deshpande”s signatures because they were the only other signatories on the share certificate and they were aware that Deshpande was not in the company during that period.

In my earlier post on DSKDL Sanjay Deshpande has commented that “Vijay Da, I read ur blog link, left DSK in 2004 & sure hasn’t signed anything after 2006!”

On same share certificate in 2001 HDK alias HNP has singed as Hemanti Phadke while in 2012 she has signed as Hemanti Kulkarni.

She was a minority share holder as Hemanti Phadke and Hemanti kulkarni as authorised signatory of DSKDL at the same time.

In 2012 hemanti signed as kulkarni and sanjay deshpande signe is ther when he had left DSKDL in 2004

Conflict of Interest

DSK has formed dozens of personal companies as other than DSKDL just for the purpose of taking Fixed Deposits!

These companies don't have any business activity going on other than raising FDs!

All these companies are in the same competing business and all the transactions are done by the same woman (HNP/HDK) in all these companies.

Basically she controls all the finances of all these companies.

Manipulation of Funds

In a video and interview to ABP mazha DSK claims that unlike other builders he prefers to take FD holders as partners instead of using other means of finances.

But looking at the company's finances and after communicating with financial institutions and customers, it appears that more than 1000 crores of rupees were disbursed to DSK through these Chanel for project construction activities.

However not even 10 % of the disbursed amount was used for actual construction purpose because his entire project work is stalled for many months.

If that money was not used for construction then it was certainly not used for repayment of FD holders because they are still fighting for their even thousand rupees every day.

And crores of rupees of payment of contractors and suppliers is still due with the company! Then the question remains is where did that money go?

Even the customers are complaining that more than 80% of their housing loan amount is disbursed without their consent but there is no work going on at the sites and not even 10% work is done at sites and the possession of their apartments are delayed by years!

Flat buyers will have to keep a close watch on the committed dates of possession of the RERA registered projects of DSK!

Conspiracy

More important question is when there was not even 10% work in progress on ground then how come financial institutes disbursed 80 % of the loan amount to DSKDL?

That indicates that these financial companies were also had hand in glove with DSKDL.

It's a big surprise that how they were able to service the interest of the investors earlier because there is no source of income to these companies other than Fixed Deposits!

There is no permission from RBI or SEBI to raise Fixed Deposits and the investors are not even made aware of it!

The FD holders of his public limited company have little bit guarantee to get some of the invested money back but what about the personal companies where there no security to the investors of getting back even a single rupee or their invested amount.

Murky Deals

Here is another manipulation by DSKDL family with a big Loss to the Shareholders and Public Authorities!

There was a company known as Oyster Promoters & Developers Pvt Ltd, owned by HNP and Ashwani D. Kulkarni .

Oyster Company was created by Kulkarni Family to take advantage of DSKDL at a loss for shareholders.

This company owned some defence and forest reservation land and was a loss making company.

Yet DSK went ahead and merged this loss making Oyster whose land was worth not more than some lac rupees was merged to DSKDL by issuing 38 lac shares of DSKDL worth more than 40 crores at that time.

Interestingly as per 2006 offer document HNP has 98 % in Oyster Company and Ashwini Kulkarni and Talekar have 1 % each.

However when Oyster merged with the DSKDL 15.2 Lac shares worth more than 20 crores were transferred to HNK and her son Shirish Kulkarni.

One can observe the manipulated Shareholding Pattern of 38 lac shares and how those landed in the hands of DSKDL Family Members.

HDK who was a minor shareholder earlier in DSKDL grown richer by 15.2 lac shares from Oyster merger and also another 8,18,307 shares she claims to have received as a gift from unnamed entity as shown on NCD prospectus 2014 .

Dubious Share Transfers

Another surprising & questionable shareholding of approximately 15 lac DSKDL shares is by Shirish Deepak Kulkarni.

Question is when HNP was partner in Oyster what shares were transferred to HDK and when Shirish was not remotely concerned with oyster then why 15.2 lac shares were transferred to him.?

Loss To Company, profit to Family

There is an institute known as DSK Global, Pune, earlier owned by Family members of DSKDL.

When the institute started showing losses, DSKDL made it a subsidiary of DSKDL thus passing the family loss to shareholders.

And now DSKDL has given bank guaranty of 100 crores for loan obtained by DSK Global.

The DSKDL annual report of 2016 itself they admit that they have sold off almost all their land bank at Dhayari, Kirkatwadi and Balewadi and today other than Fursungi, they don’t have any other land remaining but they are claiming to have huge land bank worth 10000 crores!

Another shocking thing is First they siphoned off 165 crores to D S kulkarni and company from fursungi land and now committing 300 crore rupees against 5,00,000 sq ft of DSKDL's own dream city project!

So whatever money DSKDL is supposed to earn has already been planned to divert to HDK and her Shirish through D.S. kulkarni and company.

Interestingly DSKDL has indemnified all these companies from any losses or damages putting all the liabilities on DSKDL

Employees crying foul

Since last few months DSKDL’s staffs is crying foul.

Few months’ back staff strength was close to 1500 now has been reduced to 40 only.

Since last many months they have not been paid any salaries to employees.

Not even d their TDS returns has not been cleared by DSKDL

Why DSK family is doing all this?

The reason and outcome of DSKDL family actionss reflect in share holding pattern of DSKDL.

HNP/HDK is now major shareholder after DSK and if we count Shirish Kulkarni’s shares then total is more than DSK’s shares.

Along with her sisters by siphoning off money from DSKDL , they have grown richer by crores of rupees.

And DSK himself wanted to be like Hiranandani.

In email to after my last post on DSKDL one ex. employee wrote to me ‘Twice I asked him (DSK) before joining that Why You want to hire me ? As per current records you have 95% Maharashtra’s whereas I am Sindhi. He proudly told me, I have noticed How Hiranandani, Rahejas progressing in Mumbai. Now I don’t want any "Marathi speaking person" I chose U out of 70 candidates who came to my office and sat/waited 4 hours for interview “

He was briefly in DSKDL for 4 months?.

Investors, Banks, Depositors, flat buyers, suppliers, employees everybody is crying for their money. Then Mr.DSK where did all that money go?.

Land cruiser, flat in trump tower business class air tickets for family and so on, the list is very big. DSK and his family member are enjoying lavish life style at the cost of these peoples’ money.

No Mr. DSK it is not your family matter. All that money you are enjoying belongs to public.

And you have to return it to them!

Monday, July 27, 2015

Chikki that nourished malpractices in Maharashtra Mantralay – Maharashtra Chikki Scam Part 2

In February 2013 Pankaja Munde awarded 76 crore chikki contract to Suryakanta Mahilaa Audyogik SahkariSanstha SMASS . Earlier in 2013 also SMASS had bagged 38 crore chikki contract in Congress - NCP run government, obviously without tender , competitive bids and despite of clear objections from commissioner , Adivasi welfare . Afterwards order was stayed and High level inquiry was in this case. On account of objections raised by then BJP member’s .Interestingly Not ruling party nor opposition followed the case.

Then BJP came in to the power and Pankaja Munde awarded exactly double amount i.e 76 crore chikki contract similar way and same contractor, Despite Supreme court order and High Court directives, Clear opinion of then commissioner (industries) and decision of a committee headed by Chief secretary on 27 June 2013 ( Anne -8) to not to purchase Items on Rate Fixation and

off course without tender or competitive bids .Wasn’t that interesting ?

Actually as per supreme court and Central government directives the food to be provided should be fresh, hot and local. Accordingly government of Maharashtra on 6 July 2009 appointed a committee to decide rates, quantity of recipe of food that was to be provided anganwadis as Take Home Ration (THR) and to eat at anganwadi itself (Anne - 10) . Accordingly a GR was issued on 24 august 2009 directing quantity and recipe of food that was to be provided to anganawadi children.

In This GR there was no mention of any type of Chikki or ayurvedic biscuits. (Anne -11).Ground nut laddu was there in that list. Then how come chikki was introduced in anganwadi children supplimentary nutrition food?. Story is interesting on 2nd June 2011 then government decided that instead of sweet ground nut laddus chikki will be provided to children and pregnant ladies anganwadi in rural and urban areas. ( Anne - 12) .Which dietitian or doctor recommended it? Was impact of eating chikki on malnourished children studied ?.There is no answer to that. However interesting part of the story is there no chikki item in SMASS’s product list and it has never introduced chikki in open market. What does that mean ?

However the rate given as per tender for ground nut laddu was Rs. 1.27 for 10 gram i.e. Rs 12.70 for 100 grams and it was kept the same for chikki in June 2011.

In February 2012 government suddenly reserved several items like mango pulp, pickles, amala- kokam sharbat including Chikki to be purchased from Suryakanta Mahilaa Audyogik Sahkari Sanstha SMASS only. (Anne - 13).Don’t ask why this privilege was given to SMASS . Now how and why some items were reserved to be purchased from SMASS is matter of investigation. What were its credentials?. . But when organization

belongs to political person then nothing is impossible.

In august 2012 rates for chikki’s to be purchased were fixed and they almost almost double the rate in 2011. ( Anne - 14). Rates decided for SMASS were applicable to 30 June 2013 only.

On 29 April 2013 work orders of supply of chikki was issued to SMASS, obviously without tender , competitive bids and despite of clear objections from commissioner , Adivasi welfare . (Anne -15, Page 1) . Even then Purchase orders were issued. Afterwards orders were stayed on 14 June 2013. On objections raised by then MLC on 16th July 2013 and Minister had assured High level inquiry in this case. ( Anne – 15, page 7) .

On 3 june 2013 Radika rastogi then Development commissioner (Industries) had clearly opined “The CSPO has not done any Rate contract for chikki. There is only Rate fixation. In case of rate fixation it is not done competitively as in an RC ( I.e by way of open tenders).it only means that rate are reasonable, it does not mean that rates are competitive. Rate fixation is only meant for small orders & reservation is given for the certain items produced by women’s groups, societies, organizations of ex servicemen, blind/handicapped persons etc. In the present case, where purchase is to the tune of 37 crores, it is advised that purchase based on rate fixation would not be appropriate. Open tender procedure need to be followed wherein the specification and & standard are clearly spelt out. “( Anne – 15, page 6)

Accordingly One man High level committee of P.S Meena was appointed to inquire in to the matter on 20 November 2013 . But as the matter was High profile committee didn’t find time to enquire into it.(Anne -16 ) Hence again extension was given to committee till May 2014.( Anne - 17 ) But what happened to committee report no one knows.

Interestingly inquiry committee on chikki was appointed on complaints of BJP members, none of them followed it. Even after they came in to the power in October 2014 they didn’t do anything. Moreover one of their colleagues Pankaja Munde awarded contract to SMASS. What does that mean? .Allegations were baseless or contractor was powerful enough to silence everybody?

Despite Supreme court and High Court directives, Clear opinion of then commissioner industries and decision of a committee headed by Chief secretary on 27 June 2013 ( Anne -8) to not to purchase Items on Rate Fixation .The extension was given to rates fixed for SMASS on 1 September 2014 (Anne -18)

On 12 February 2015 pankaja munde had a meeting with principal secretary (WCD) and as per her orders and Principal secretaries guidelines, all previous proposals were rejected and fresh proposal were submitted . And accordingly three work orders were issued First one was for 6 month to 3 year old and amount was 23 , 85, 65,763/- (Anne - 19)

Interestingly in this order word ( amaranth) rajgira laddu/ chikki were there but afterwards only word chikki was mentioned in work order awarded. And accordingly only chikki was provided . There is difference between preparation of laddu and chikki . There was no mention of any rajgira Item in recipe GRs

Through second GR she ordered purchase of micronutrient chikki/ laddu but actually chikki was provided . Interestingly rates of groundnut chikki and and micronutrient chikki were different. Ground chikki / laddu rate 210 / kg while micronutrient chikki was 285/kg.This procurement was of 79, 81.42,671/- for for children of 3 to 6 year and pregnant and lactating women. (Anne -20 )

Through third GR she proposed to purchase of coconut chikki of 10,41, 55,260 for children of 3 to 6 years (Anne - 21)

This all purchase was for for year 2014- fifteen i.e. for only thirty days following chikki items were

Rajagira chikki 6 months to 3 years children

quantity 1109608 kg rate Rs 215/ kg = 238565720

Micronutrient 3 to 6 yrs 1909513 kg Rate 285/kg = 544211205

‘’ women 890987 rate 285 /kg = 253931437

Coconut chikki 3 to 6 yrs 520776 Rate 200/kg = 104155260

Total chikki kg 4430884 (forty four lakh thirty thousand eight hundred eighty four kg)

Rupees 1140863622 ( one hundred fourteen crore eight lakh sixty three thousand six hundred twenty two Rupees) amount actually sanctioned earlier was next day revised to 75 five crores ( Anne – 23 A) and also items micronutrient chikki for women and coconut chikki for 3 to 6 years children were cancelled. Don’t ask Why nutrition was denied to pregnant and lactating women and children of of 3 to 6 years group. Reason was obvious some more contractors who were sniffing in Mantralay corridors had also got clue of funds allocated to WCD. They also needed to be nourished. And only contractors do have approach in Mantralay and not the malnourished children and women.

Does the SMASS has capacity to prepare 30 lakh kg chikki ? . can a six month old infant eat chikki ? Why Pankaja Munde awarded contract to tainted contractor violating all the norm and directives and that too to a contractor against her own collogues had raised fingers. These are are the question she has to answer now.

This Scam Has a History,Maharashtra Chikki Scam Part -1

After firm denials of any malpractices in purchases contracts worth Rs 206 crore in a single day Pankaja Munde has now partly admitted her misdeeds. While doing so she also admitted that a company that provided chikki and khichadi of substandard quality in past was again given a contract. In her partial confession she cleverly has tried to put curtain on bigger wrongs. Not a single procurement of 206 crores she has done in February 2015 is free from scam.

Photo courtesy NDTV.com

It seems that this business of siphoning public money was going on in WCD since last many years. They wait for money to be allotted under integrated child Development Scheme ( ICDS ) and then distribute money amongst themselves. To do that they ignored, broke all procurement rules and guidelines. They arbitrarily made rate contracts; did rate fixation gave extension to it. And as all the ministers and senior officials were equally party to it no complaint helped break this racket.

As far as purchases of chikki and ayurvedic biscuits are concerned it also amounts to contempt of Supreme Court orders in 2004 and 2006. Supreme court had banned private contractors for supply of nutrition and directed use of village communities, self help groups and mahila mandals. On 7th of October, 2004 Supreme court ordered that the contractors shall not be used for supply of nutrition in Anganwadis and preferably Integrated child development scheme (ICDS) funds shall be spent by making use of village communities, self-help groups and Mahila Mandals for buying of grains and preparation of meals.

On 13th of December, 2006 Chief Secretaries of all State Governments/UTs were directed to submit affidavits giving details of the steps taken with regard to the order of supreme Court of October 7th, 2004 . After that all the States and Union Territories were directed to provide supplementary nutrition in the form of a morning snack and a hot cooked meal to the children in the age group of 3 to 6 years.

Photo Courtesy Mid Day

But government of Maharashtra instead of hot cooked food provided chikki and biscuits as a supplementary nutrition awarded work to “ Mahila Sanstha’s” instead of mahila mandals or self help groups gave it Mahila sanstha or mahila institutions

Principal adviser to the commission that Supreme court of India had appointed to monitor the implementation of the food and work related schemes in the country (Anne - 1 ) had pointed out that Following the Supreme Court orders of 2004, the Government of Maharashtra attempted a system of decentralized supply through women’s Self Help Groups (SHGs) . To ensure that big contractors did not come in, they passed a Government Resolution that no single SHG should supply more than five anganwadis. (Anne 2 )

While this system was beginning to work, the Government of Maharashtra in 2009; once again introduced a new system through which it allowed backdoor entry of big private contractors with only commercial interests. Then GR in that regard was issued in 2011 ( Anne -3)

Meanwhile They cleverly used word ‘Mahila sansthas’/ ‘woman’s institutions’in tender process . Mahila sansthas’/ ‘woman’s institutions’ includes not just SHGs/Mahila Mandals but any entity that has women in it, irrespective of size and turnover. By including Mahila Sansthas the government of Maharashtra opened the door for private companies and contractors. And the contract was awarded to three mahila sansthas

The said report also observed following irregularities , in contract given to these santhas

• The contracts for supply of THR ( Take home ration) under supplementary nutrition project ( SNP) has been given to Mahila Mandals which are further sub-contracting the responsibility of production of THR to private units. This is in violation of the spirit of the Supreme Court order that production and distribution should be decentralized and private contractors kept out

• The private units that have been leased by the Mahila Mandals for production of THR are owned by family members of the members of the Mahila Mandal who have the controlling authority over all organizational and financial matters in relation to the said lease agreement.

• In spite of many complaints regarding the quality of THR, there has not been any serious investigation or suspension of contracts. Lab reports on quality submitted by the Mahila Mandals are suspicious as all three mahila mandals approach the same lab and when the quality is tested in a government lab through picking a random sample, the THR failed to meet the nutritional norms. Further, even an independent checking by investigation bureau of the newspaper, Daily News and Analysis, Mumbai through a private lab showed that the THR being supplied does not meet nutritional norms.

• Two of the units (Paras Foods and Indo Allied Protein Foods) that have been leased by the Mahila Mandals for supply of THR are already under scrutiny following an FIR and Charge sheet by the CBI on charges of corruption in supply of food for the Tribal Department.

• Many of the transactions by the Mahila Mandals through the sub-committees have been done without informing and taking consent of the Co-operative Societies Department, as required by law.

• Although the ( Expression of interest ) EOI was invited for each district separately, the entire responsibility has been given to only three mahila mandals who are producing the THR in a total of less than ten units for the entire State, out of which one unit is based out of the State in Rajasthan.

Contract awarded to three mahila sansthas were front originations of private contractors.(Anne -4) The report also throws light on names of private contractors. Interestingly according to media reports most of these contractors were near and Dear ones of Munde family. (Anne -5 ).That may the reason suryakanta is now blaming gujrati marwadi ( Anne – 6)

Before going to actual procure procere we must see what is Rate Contract and Rate Fixation

A Rate Contract is an agreement between the purchaser and the supplier for supply of specified goods at Specified price and terms & conditions during the period covered by The Rate Contract (Normally it is always One year) . No quantity is Mentioned nor is any minimum drawal Guaranteed in the Rate Contract. The Rate Contract is in the nature of a standing offer From the supplier firm. But there is always limit on maximum purchase on Rate Contract

All government purchases in Maharashtra above Rs 3 lakh are mandated to be made after inviting tenders. This provision is there since 1993 . earlier purchase worth Rs 500/- at a time and Rs 20000/- of as ingle item in a year was allowed on rate contract . But above that, tender process was mandatory. Gradually this limit and provision was increased to 3 lakh till December 2014. (Anne – 7)

Rate fixation is only meant for small orders & reservation is given for the certain items produced by women’s groups, societies, organizations of ex servicemen, blind/handicapped persons etc. Nagpur bench of Bombay high court declared rate fixation illegal (2545/2012).Accordingly on 27 June 2013 in a meeting held chairmanship of chief secretary it was decided that as HC order henceforth Rate fixation will not be done. Attachment.(Anne - 8).

Earlier there were two major categories of children 6 months to 2 Years and 2 – 6 years. As per guidelines for children between 6 months to 2 years supplementary nutrition was to be provided in form of paste. It was also condition that food provided to children below 3 years should be light to eat and digest. Recipe for such food had been also given n this GR ( Anne - 9). There was no chikki, biscuits, eternal feed powder or protein powder in this chart.

Items like chikki , biscuits were never in this scheme but were procured for children in 6 month to 3 years range without adopting any procedure or considering it effect on children’s health.