The Jindal Group The many Sins of the Jindal group

 

 Om Prakash Jindal and wife Savitri Devi

Left to Right   Sajjan Jindal Naveen Jindal Ratan Jindal pritviraj Jindal

 It was  Founded in 1952 by Om Prakash  Jindal, a first-generation entrepreneur,


O P Jindal began life as a steel trader


 By 1952, he  set up the group's first factory at Liluah, near Kolkata


In 1970, he established Jindal Strips Limited and a mini steel plant set up at Hisar to manufacture coils and plates through the electric and furnace route


By the 21st Century the  Jindal group had become  a US $ 15 billion conglomerate, based in Haryana

It split into into 4 main groups between O P Jindals 4 sons (He had 9 children 4 sons 5 daughters )

The core team of the Group comprises the four sons of the founder.

 Jindal SAW Limited is led by Prithviraj Jindal.


Sajjan Jindal has promoted the JSW Group of Companies.


 Ratan Jindal leads Jindal Stainless Ltd,


 Naveen Jindal is at the helm of affairs at Jindal Steel & Power Ltd.


Like some other business  families they have got in directly into politics too with Naveen Jindal being a Congress MP


The Group has been in the news for all the wrong reasons


Bogus Capital  Expenditure


http://www.moneycontrol.com/news/cnbc-tv18-comments/i-t-raidsjsw-steeljsw-energy-sources-_529911.html


The taxman seems to be flexing its muscles as Sajjan Jindal promoted JSW Group is under its scanner currently for alleged tax evasion and has conducted raids on company premises, reports CNBC-TV18’s Ashwin Mohan.
It is learnt that 200-250 officials have raided around 15-20 premises in Mumbai, Bangalore, Ratnagiri and Rajasthan have been raided. The taxmen are investigating alleged bogus capital expenditure and wrongful claim of deduction. Besides, the I-T is also investigating alleged adjustment of company books to reduce tax liabilities


 

Illegal Mining bribery

The Supreme Court on Saturday asked the Central Empowered Committee on environmental matters to look into the allegations of illegal mining against M/s Adani Enterprises and M/s Jindal Steel (JSW) in Karnataka.

The apex court forest bench of Chief Justice S.H. Kapadia, Justice Aftab Alam and Justice Swatanter Kumar asked the court-appointed CEC to look into the allegations after it was told that the former Karnataka Lokayukta Justice Santosh Hagde has given specific findings about their illegal activities including illegal mining.

Similarly, Bhushan said that the three serious illegalities have been recorded against M/s Jindal Steel (JSW) and its front company M/s South West Mining Company (SWMC).

These illegalities include that M/s JSW has been a major recipient of illegally obtained ore supplied by M/s AMC;

M/s JSW has caused a loss of Rs.324 crore to the State exchequer by overloading of illegal ore amounting to 12,97,707 MT

and M/s JSW has been indicted by the Lokayukta for making illegal payments of Rs.30 crore to the close relatives of the then chief minister B.S. Yeddyurappa, Bhushan's application said quoting Lokayukata's report.

Tax Evasion


http://www.domain-b.com/companies/companies_j/Jindal_vijaynagar_Steel/20110321_tax_evasion.html

http://www.business-standard.com/india/news/i-t-raidjindal-steel-works-office/129181/on

The JSW group is reported to have disclosed tax evasion to the tune of Rs260 crore following raids carried out by the income tax authorities at the premises of two group companies.

Reports say the I-T department was following up alleged bogus capital expenditures reported by the two companies and that the disclosures have been made after questioning of senior management

Income tax authorities have raided the premises of JSW Energy Ltd and JSW Steel Ltd, carrying out search and seizure operations on various locations of the two companies between 16 and 18 March 2011.

The department is also looking at records of the company's recent financial dealings related to diversification, sources said.

The searches come a day after JSW Steel announced its ambitious expansion plans.
With the expansion, the company is all set to become the country's largest steel maker by next month, surpassing state-run SAIL.

GDR Scam

The Arun Panchariya(GDR Scamster)  Bank Euram Bank Asia Marketing Brochure clearly mentions that the Jindal Group used its "services" for equity and debt placements No details were provided

Of Course theres just the Banks words because when companies raise GDR money they don't tell the exchanges or shareholder's which investment banks they use

The fact is though that one group company did raise 500 crores by way of GDRs

Security Details	30,85,814 Equity shares of Rs.10/- each issued underlying 30,85,814 Global Depository Receipts (1GDR = 1 Equity Shares) of the Company. These shares are ranking pari-passu with the existing equity shares of the company.
Date of Allotment	December 14th 2010
Dist. Nos	2220031387 to 2223117200
Price per   GDR	USD 33.19

Other group companies too plan GDR fund raising

Huge salaries


Some people might say the Jindals are doing openly what others do on the sly


 But in case you've forgotten the Jindals have been alleged to have cooked the books too

 Naveen Jindal took  home 67 crores Sajjan 26 crores in 2011 ,this when the share price has halved


And this isn't a one off


Last year in 2010 Naveen took home 69 crores in 2009 he took home 30 crores
Since 2008 Naveen and sometimes Sajjan have been in the top 5 in terms of corporate salaries Naveen despite being an MP and naturally not having as much time as Sajjan takes home more ?


Or Could it be that Naveen likes his salary in cheque  and Sajjan and the other brothers  takes theirs  from the  alleged bogus capital expenditures reported by the two companies ???

 

 

 http://fraudex-2012.blogspot.com/2011/11/op-jindal-group-tax-fraud-bribing-and.html