Thursday, September 22, 2011 | By: Darshak Hathi

Technicality of Sonia Gandhi

The day I entered Indiraji's household I became an Indian, the rest is just technical -- that is Sonia Gandhi's latest explanation for not having acquired Indian citizenship till fourteen years after her marriage to Rajiv Gandhi.

First the facts. Surya Prakash, the Consulting Editor of The Pioneer, has documented these in detail. Sonia married Rajiv on 25 February, 1968. Under section 5(c) of the Indian Citizenship Act she became eligible to register herself as a citizen of India on 25 February, 1973. She chose to continue as a citizen of Italy. She applied for Indian citizenship only ten years later, on 7 April, 1983.

A foreigner seeking Indian citizenship has to state on oath that he or she has relinquished his or her citizenship of the original country. This requirement was all the more necessary in the case of an Italian citizen: under Italian law, an Italian taking citizenship of another country continues to retain his or her Italian citizenship.

Sonia Gandhi's application did not have the requisite statement, nor did it have any official document from the appropriate authorities in Italy. The omission was made up in a curious way: the Ambassador of Italy stepped in, and wrote to the Government saying that Sonia Gandhi had indeed given up her citizenship of Italy. He did so on 27 April, 1983. Sonia got her citizenship forthwith -- on 30 April, 1983.

Another nugget Surya Prakash has unearthed is that while Sonia became a citizen on 30 April, 1983, her name made its way to the electoral rolls as of 1 January, 1980! In response to an objection, it had to be deleted in late 1982. But sure enough, it was put back on the electoral roll as of 1 January, 1983. She hadn't even applied for citizenship till then.

All technicalities! If any ordinary person were to proceed in the same way, he would be up for stern prosecution.

Maruti was one of the most odious scandals connected with Mrs Indira Gandhi and her family. The Commission of Inquiry headed by Justice A C Gupta recorded that, though she was at the time a foreigner, Sonia Gandhi secured shares in two of their family concerns: Maruti Technical Services Pvt. Ltd. (in 1970 and again in 1974), and Maruti Heavy Vehicles (in 1974). The acquisition of these shares was in contravention of the very Act that Mrs Gandhi used to such diabolic effect in persecuting her political opponents, the Foreign Exchange Regulation Act, 1973. Just another technicality!

But the Mother of Technicalities, so to say, is to be found in the way Sonia Gandhi, without having any known sources of income, has become the controller of one of the largest empires of property and patronage in Delhi. The Jawaharlal Nehru Memorial Library and Museum is one of the principal institutions for research on contemporary Indian history. It is situated in and controls real estate which, because of its historical importance, cannot even be valued. The institution runs entirely on grants from the Government of India.

Sonia Gandhi has absolutely no qualification that could by any stretch of imagination entitle her to head the institution: has she secured even an elementary university degree, to say nothing of having done anything that would even suggest some specialization in subjects which the institution has been set up to study. But by mysterious technicalities she is today the head of this institution. So much so that she even decides which scholar may have access to papers -- even official papers -- of Pandit Nehru and others of that family, including, if I may stretch the term, Lady Mountbatten.

Real estate, only slightly less valuable, has been acquired on Raisina Road. The land was meant to house offices of the Congress. A large, ultra-modern building was built -- the finance being provided by another bunch of technical devices which remain a mystery. The building had but to get completed, and Sonia appropriated it for the other Foundation she completely controls -- the Rajiv Gandhi Foundation.

The Congress(I) did not just oblige by keeping silent about the takeover of its building, in the very first budget its Government presented upon returning to power, it provided Rs 100 crores to this Foundation. The furore that give-away caused was so great that the largesse had to be canceled. No problem. Business house after business house, even public sector enterprises incurring huge losses, coughed up crores.

The Foundation has performed two principal functions. The projection of Sonia Gandhi. And enticing an array of leaders, intellectuals, journalists etc. into nets of patronage and pelf.

But the audacity with which the land and building were usurped and funds raised for this Foundation falls into the second order of smalls when they are set alongside what has been done in regard to the Indira Gandhi National Centre for Arts.

This Centre was set up as a trust in 1987 by a resolution of the Cabinet. The Government of India gave Rs. 50 crores out of the Consolidated Fund of India as a corpus fund to this Centre. It transferred 23 acres of land along what is surely one of the costliest sites in the world -- Central Vista, the stretch that runs between Rashtrapati Bhavan and India Gate -- to this Trust. Furthermore, it granted another Rs. 84 crores for the Trust to construct its building.

The land was government land. The funds were government funds. Accordingly, care was taken to ensure that the Trust would remain under the overall control of the Government of India. Therefore, the Deed of the Trust provided, inter alia,

• Every ten years two-thirds of the trustees would retire. One half of the vacancies caused would be filled by the Government. One half would be filled by nominations made by the retiring trustees.

• The Member Secretary of the Trust would be nominated by the Government on such terms and conditions as the Government may decide.

• The President of India would appoint a committee from time to time to review the working of the Trust, and the recommendations of the committee would be binding on the Trust.

• No changes would be made in the deed of the Trust except by prior written sanction of the Government, and even then the changes may be adopted only by three-quarters of the Trustees agreeing to them at a meeting specially convened for the purpose.

Now, just see what technical wonders were performed one fine afternoon.

A meeting like any other meeting of the trustees was convened on 18 May, 1995. The minutes of this meeting which I have before me list all the subjects which were discussed -- the minutes were circulated officially by Dr Kapila Vatsyayan in her capacity as the Director of the Centre with the observation, "The Minutes of this meeting have been approved by Smt Sonia Gandhi, President of the IGNCA Trust."

What did the assembled personages discuss and approve? Even if the topics seem mundane, do read them carefully -- for they contain a vital clue, the Sherlock Holmes clue so to say, about what did not happen.

The minutes report that the following subjects were discussed:

1: Indira Gandhi Memorial Fellowship Scheme and the Research Grant Scheme. 
2: Commemoration volume in the memory of Stella Kramrisch. 
3: Sale of publications of the IGNCA. 
4: Manuscripts on music and dance belonging to the former ruling house of Raigarh in M P 
5: Report on the 10th and 11th meetings of the Executive Committee. 
6: Approval and adoption of the Annual Report and Annual Accounts, 1993-94. 
7: Bilateral and multilateral programmes of IGNCA, and aid from U N agencies, Ford Foundation, Japan Foundation, etc. 
8: Brief report on implementation of programmes from April 1994 to March 1995. 
9: Brief of initiatives taken by IGNCA to strengthen dialogue between Indian and Vietnam, Thailand, Indonesia, China. 
10: Documentation of cultural heritage of Indo-Christian, Indo-Islamic and Indo-Zoroastrian communities. 
11: Gita Govinda project. 
12: IGNCA newsletter. 
13: Annual Action Plan, 1995-96. 
14: Calendar of events. 15: Publications of IGNCA. 
15: Matters relating to building project. 
16: Allocations/release of funds for the IGNCA building project.

There is not one word in the minutes that the deed of the Trust was even mentioned.

This meeting took place on 18 May, 1995. On 30 May, 1995 Sonia Gandhi performed one of technical miracles. She wrote a letter to the Minister of Human Resources informing him of what she said were alterations in the Trust Deed which the trustees had unanimously approved. Pronto, the Minister wrote back, on 2 June, 1995: "I have great pleasure in communicating to you the Government of India's approval to the alterations."

The Minister? The ever helpful, Madhav Rao Scindia. And wonder of wonders, in his other capacity he had attended the meeting on 18 May as a trustee of the IGNCA, the meeting which had not, according to the minutes approved by Sonia Gandhi, even discussed, far less "unanimously approved" changes in the Trust Deed.

And what were the changes that Sonia Gandhi managed to get through by this collusive exchange of two letters?

• She became President for life.
• The other trustees -- two-thirds of whom were to retire every ten years -- became trustees for life. The power of the Government to fill half the vacancies was snuffed out.
• The power of the Government to appoint the Member Secretary of the Trust was snuffed out; henceforth the Trust would appoint its own Member Secretary.
• The power of the President of India to appoint a committee to periodically review the functioning of the Trust was snuffed out; neither he nor Government would have any power to inquire into the working of the Trust.
A Government Trust, a Trust which had received over Rs. 134 crores of the tax-payers' money, a Trust which had received twenty three acres of invaluable land was, by a simple collusive exchange of a letter each between Sonia Gandhi and one of her gilded attendants became property within her total control.

The usurpation was an absolute fraud. The Trust Deed itself provided that no amendment to it could come into force -- on any reasonable reading could not even be initiated and adopted -- without prior written permission of the Government. Far from any permission being taken, even information to the effect that changes were being contemplated was not sent to Government. An ex post "approval" was obtained from an obliging trustee.

That "approval" was in itself wholly without warrant. Such sanctions are governed by Rule 4 of the Government of India (Transaction of Business) Rules, 1961. This Rule prescribes that when a subject concerns more than one department, "no order be issued until all such departments have concurred, or failing such concurrence, a decision thereon has been taken by or under the authority of the Cabinet." Other departments were manifestly concerned, concurrence from them was not even sought. The Cabinet was never apprised.

The rule proceeds to provide, "Unless the case is fully covered by powers to sanction expenditure or to appropriate or re-appropriate funds, conferred by any general or special orders made by the Ministry of Finance, no department shall, without the previous concurrence of the Ministry of Finance, issue any orders which may... (b) Involve any grant of land or assignment of revenue or concession, grant... (d) Otherwise have a financial bearing whether involving expenditure or not..."

And yet, just as concurrence of other departments had been dispensed with, no approval was taken from the Finance Ministry.

The Indian Express and other papers published details about the fraud by which what was a Government Trust had been converted into a private fief. Two members of Parliament -- Justice Ghuman Mal Lodha and Mr. E. Balanandan -- began seeking details, and raising objections.

For a full two and a half years, governments -- of the Congress (I), and the two that were kept alive by the Congress (I), those of Mr. Deve Gowda and of Mr. I. K. Gujral -- made sure that full facts would not be disclosed to the MPs, and that the concerned file would keep shuttling between the Ministry of Human Resource Development and the Ministry of L

As a result, Sonia Gandhi continues to have complete control over governmental assets of incalculable value -- through technicalities collusively arranged.

A latter-day Dalhousie -- annexation of Indian principalities through technicalities!

By Arun shourie
Sunday, January 9, 2011 | By: Darshak Hathi

Cast System in India

India has been wrecked by the Caste issue after post Independence era.

The decennial census of 2011 is underway. The big question, therein, is whether to include caste enumeration in the “Census Data Gathering Process” or not?

Let us take a brief look at this Caste issue, which has become the talk of India.

The last time caste was enumerated in the Census Data Gathering Process was 80 years ago, in 1931. After that the British Government and the subsequent Indian governments have desisted enumerating the caste. This is because of the noble vision of the freedom fighters and the subsequent leaders of India who wanted a casteless, equal society in India.

To this effect, they felt that branding each one by his/ her caste would only reinforce the caste divide, which is slowly dying.
In the first place, how did this caste divide occur? What is “caste”? Where did this term “caste” come from? When was the first time that the Indian society was segregated along the lines of “caste?”

The word “caste” is not Indian or even English in origin. It comes from the Portuguese word “Casta,” meaning, “race.” In the 1700’s, when the British started taking administrative control over India, for their then administrative convenience, they first combined all the 6 distinct religions of India, namely Vaishnavam, Shaivam, Shaktam, Ganapathyam, Kaumaram and Sauram, known as Shadmadam, into a single religion and called it “Hinduism.”

It was an administrative necessity for the British administrators to do so then. After the 1857 First War of Independence, the British administrators thought of ways to keep India under check and therein looked for various means and measures to this end.

One of the policies that they followed in India, since the beginning of the 1800’s was the “Divide and Rule” policy of India. Under this policy of “Divide and Rule,” the British administrators brought caste enumeration to the census starting in 1871, as one of the steps to create a divide.

This caste enumeration in the 6 censuses between 1871 and 1931 brought untold havoc and wrecked the societal fabric of India, creating an indelible scar and a deep divide in our minds, for generations to come. You may wonder, if the 4-caste system of Brahmana, Kshatriya, Vaishya, Shudra, was not a native Indian concept? Why blame the British for it?

India has over thousands of years followed a multi dimensional societal organization system in the name of the Jathi -Varna system.

The word Jathi etymologically refers to birth. Jananam means, to take birth and Jathi denotes the family lineage into which one is born. Each Jathi denotes the primary work, service or occupation that the family that one is born into, is involved in. It is akin to the Trade Guilds of Europe. There are many a Jathi in India, as there are vocations. By some counts there are close to 2600 Jathi. Let us now come to the contentious term Varna. Varna are primarily only 4 in number - Brahmana, Kshatriya, Vaishya and Shudra.

Varna, at a common level, is understood as colour and in this understanding, was used by the British Indologists, to summarily state that the 4 divisions in society called Varna had arrived to be based on the colour of the people. This was an erroneous interpretation right from the beginning.

The word Varna primarily means, “to choose.” Here is something that can help relate to this meaning of Varna. In the Indian society, where marriages are more the arranged norm, even today, while searching for a bride or groom, the term used for a prospective bride or groom, is Var. Var means choice and the term Varna, denotes choice. From this, we can draw the right conclusion that the 4 Varnas were based on the choice of an individual, on his/ her aptitude into that Varna.

Hence, in this Jathi-Varna system, Jathi stands for a person’s family and birth in that family and is hence fixed for life. Varna is the flexibility to choose an alternate when desirous
. That was how the whole society was designed and that was how it functioned over the last 5,000 years.

A person, who thus was born into one of the many specific Jathi, by default, took on the Varna of his parents and their Jathi. The option to migrate to another Varna was available by choice.

Thus a vocation-based society ensured continuity of the vocational skills needed for a society, based on Jathi but also had a choice based on flexibility built into it by the name of Varna, to accommodate exceptions in humanity.

Indian legends are replete with many cases of prominent people -kings, rishis, commoners etc. having moved from one Varna to another. Details of these and more on the Caste system can be found in the forthcoming book on Caste from Bharath Gyan. The stratification of the flexible Jathi-Varna into the watertight caste system is a legacy of the British administrators and their caste enumeration with the “Divide and Rule” policy in mind.

Today, we have an understanding of what Jathi and Varna are. The diabolical plan of the Caste enumeration of the British, should awaken us, at least now, so that the current crop of politicians do not take the regressive step of further stratifying the Indian society into various castes. In the 2011 census, after a long gap of 80 years, just when the modern society is slowly and surely unshackling itself of the divisive caste system, this should not recur. Best example is Bihar election

The age old, multi dimensional societal organization system where the society could be sliced and diced along various dimensions such as birth, profession, philosophy, religion, mother tongue etc., helped set guidelines for role play and conduct in society, along these dimensions.

The Jathi-Varna system emphasized “given birth lineage” and “chosen profession” factors.

It would be good if we could get back to the original import of the Jathi-Varna thought, wherein a society is comprised of people playing equally important roles based on one’s skills, aptitude and choice.

Only this will ensure that all are looked upon as equals. That every individual has equal rights to live as he or she chooses, within the framework of a progressive, enlightened society. To live in a civilization that accorded dignity to labour and all choices of life from time immemorial -in the true spirit of Indian society.
Thursday, November 11, 2010 | By: Darshak Hathi

Afghanistan at the Crossroads

Afghanistan, like many of its neighbors in the Middle East is finding its very existence challenged by the problem of terrorism which has in turn been caused by a rise in religious fundamentalism and fanaticism. The root of this problem arises in part from a limited understanding of its own cultural identity and its long and proud history as a people .

Afghanistan has long stood at the crossroads of a number of cultural and spiritual traditions. Because of its strategic location between the Middle and Far East it has been an important trading route and meeting place of different cultures for thousands of years.

The western explorer Marco Polo mentioned the importance of Afghanistan as a trading center on the Silk Road, which led all the way to China. Because of it’s exposure to these various traditions, Afghanistan at various times in its history has been center of Zoroastrian, Buddhist and Hindu as well as Muslim teaching.

It thrived both intellectually and materially because of its openness to these various ideas. The ancient Zoroastrian religion was born in present day Afghanistan. Buddhism entered Afghanistan at a very early period through the Indian ruler Ashoka, and over the centuries, various rulers, both non-Buddhist and Buddhist, supported the construction of Buddhist monasteries and statues.

Afghanistan was also once a center of Vedic culture. The name Gandhar, located in what is today Eastern Afghanistan and Northern Pakistan, is found in the Rig Veda, one of the oldest Vedic scriptures. During the first millennium, in this multi-ethnic society there were many periods of peaceful co-existence between communities of Hindus, Buddhists, Zoroastrians and Muslims.

Unfortunately, this rich multicultural legacy which forms an essential part of Afghanistan’s history has been largely forgotten. Had they recognized that their ancestors were a part of these traditions, they could have kept alive some of these values and this connection to their history and heritage, and perhaps these values could have allowed them to be more tolerant and less violent.

When people let go of their own heritage, it can make them intolerant and fanatical. Today Afghanistan has forgotten these traditions and so has little respect for other religions. The result of this has been a narrow and limited tradition of religious education that has radicalized an entire generation. As long as there is limited understanding and limited access to the world’s wisdom, there is no way that terrorism can be eliminated, from Afghanistan or anywhere else in this world.

If a person identifies himself primarily with a religion, culture or nationality, that’s it! He remains locked in that position and will fight and die for it and others will die with him.

Instead, why not give him a broader perspective? The only way to get rid of fanaticism in the world is through education that is broad based, multi cultural and multi religious so that a child growing up does not think that only the Bible or only the Koran holds the truth. Religious and spiritual leaders in particular need to have a broad understanding of cultures and religions. We have to teach others to value all human life, and value it more than even religion or culture.

When we learn to broaden our vision and deepen our roots, people will not fall into a narrow idea of the will of God. All Afghanistan needs to do is to study its own history to see the value of such a perspective. Afghanistan thrived for centuries as a center for learning, commerce and culture because of this broader understanding of human values. For Afghanistan to survive in the present and flourish into the future, it needs to revive a greater understanding of its own heritage.

Aping American extravaganza in name of reforms

Since 1991 Indian government is on spree of reforms ( as they call it) and globalisation.Globalisation is quite fancy word in vogue now a days.Any thing is passed on as Globalisation including corruption.

The liberalisations cum globalisation was misinterpreted as capitalism promoted in the country creating a new rich class consisting of babus,politicians, premier grad technical schools alumni and businessmen mostly the old time traders like wadias and ambanis.

The reckless and foolish acts accelerated after MM Singh took over as PM heading a corrupt mafia of foreign controlled and brainless politicians in connivance with western powers and MNCs.

The hungry Indians suddenly found freedom and took it up to fulfill all their cherished and long pending dreams of copying the western lavishness of Americans.This was called development.

See what MM Singh started doing!!!

1.First of all salary sand perks of CEOs were raised 100 to 1000 times suddenly without any logic and need just to catch up with US MNC executives in dollars.This had wide ramifications throughout the system with Public servants following the suit.
This has naturally caused polarisation of wealth in two sections of society.And price rise was natural to follow and is going on unabated till date.

2.Reckless taxation started in country with multiple taxes and raised tariffs Taxes like service tax was introduced. Chidambaram an obsessed fraudulent economist was tax crazy guy who taxed everything excepting public lavatories.The result multiple taxes initiated price spiral including property market. Today direct nd indriect taxes collectivley goes upto 40 to 50%.

3.Reckless conversion of agriculture land was started every where in name of infrastructure development wasting precious fertile land and mainly for purpose to get bribes and kickbacks in multi thousand crores of projects launched suddenly in the country eg. SEZ, Malls

4,Reckless expansion of automobiles started without India having any fuel availability or roads network. Hence increse in fuel charges by more then 100% in 7 years.

5.The industry was left on its own to fix public issue prices,raise capital and fix prices of drugs and FMCGs thus starting off a chain reaction of price escalation and profiteering.

The list of misdeeds and foolish policies of MM Singh governments are for everyone to see around them.

The result 300% price rise in general items and 700% rise in property prices in India in very short period of 7 years .And it is rising unabated.

Not a single socio economic ratio is comparable even to a badly managed US economy which Singh and his pals are copying.

More and more people are slipping under poverty,underemployment,unemployment and hunger and deprivation.Same situation as in USA is being slowly created by opening up health care, insurance and loans to private sharks and MNCs.

It wont be much time before India will have more than 15 crore unemployed and underemployed but withiout any social security support like given in USA.

USA has very strong legal systems and social security system and its a state wellfare society unlike india.

No improvement have been done in limiting gigantic corruption Eg. CWG,2G, NREGA, Adarsh society etc. (actually it has gone up many times now since Singh has joined PMO) third rate and incapable and corrupt judiciary of India,CBI, police, Terrorism, Naxalism and other such burning problems.

Social services have been stopped by government and education,healthcare,housing and basic needs are handed over exclusively to private profiteering contractors.

The huge amount of taxation money collected is being wasted in third rate and badly managed schemes in name of development and welfare and siphoning off from system.

The results are visible in rising share prices of banks and prices of property.

Not a single phneomenon going on in India today including price rise can be explained by any logic or economcs principles.It is purely loot and free-for-all going on.

It is time this corrupt ,arrogant, brainless and third rate mafia government headed by fraudulent expert and caretaker HOG Singh is dismissed in national interest.

People should create their own awareness and spread the message as corrupt media wont support against this capitalist stooge government.
Tuesday, November 9, 2010 | By: Darshak Hathi

Obama is Fooling India

The best way to pamper a fool or a child is to praise him and tell him you are great or you have done well or you will become Bachhan or Bill gates when grown up. Your chest expands with pride and self-exuberance. Same thing Obama has been singing even before leaving USA for Asian trip. If we carefully go through various statements of Obama these are merely lip service to fool Indians into opening their markets and economy more for MNC’s to loot the country and support failing US economy.
What is logic of a Visiting president in dancing with kids and talking on video screen with some villagers? Has he visited at enormous cost to USA and India, for such pranks?

How USA will help in food security? The days are not far off when wheat like in old days after independence used to be imported from USA under PL480 scheme and various US States stopped allowing the exports to India. In any case with dwindling farming land in India per capita and reckless wastage and conversion of fertile land, India will soon be looking for food from abroad. May be Obama was talking about that prospects.
And what is meaning of health care in India by USA? These are horrible and threatening prospects. The health care is already gone so expensive in India and every one knows how US healthcare experts and allied agencies loot the country there.

And what is this clean energy? How energy is made clean?
These are merely marketing slangs created to push into India their most corrupt industries like genetic seeds and very costly drugs and medical care systems.

It won't be a surprise if US stooges in India including Singh will oblige Obama.

No wonder Indian business lobby will be all praise for Obama as they are the only beneficiaries of his visit.

Sentences like:
-India is no more developing it is developed power (one can only laugh)
-India is a super power (Indians are living in fantasy world since last 10 years), How India is a world power?
-MM Singh is a great leader (Is he even a leader in the first place?)
-India and USA will deal on equal footing
-Strong Pakistan is in interest of India (Oh yeah?).We hope Obama will do everything to feed Pakistan into peak health and make it so strong as to be a big thorn in you-know-what of India.
-Ratan Tata's usual statement -It will start new chapter in Indio US relations. Well this statement sounds quite familiar to me. By the way what about the many old chapters that were started in past? Torn away?

What else would any visiting guest tell to a host?

The net result of this long trip is that Obama has managed to push through Indian doors though not very much. He has managed to get business from India and he is hopeful that some of our greedy, boneless and corrupt Indian businessmen in connivance with mafia party of congress will conspire and sell a bit more of India to western powers.

Most of soft talks and niceties are forgotten the moment guest takes the flight back home.

In this backdrop loyal and honest Indians should be watchful, so as to prevent the Indian mafia from inflicting further prize doze and more damage to Indian socio economic parameters.

It is rarely that a 3 day long visit of President of world's most important and powerful country yields little except pleasing sounding statements and praises. Very costly praises. Unless there was hidden agenda of talks.

I am left wondering what was purpose of visiting India by Obama? Some secret mission with local stooges? may be.

Now as regards India being largest democracy. Is India really a democracy or a fraudocracy. Besides casting of votes in 5 years or sometime much earlier, what is democratic in India and what are human and legal rights of common Indians? We have a criminalized police and a rotten shameless judiciary. After casting of votes the corrupt mafia and media take over and helpless Indian sitting hungry and naked under a shadow less tree wonders what is going on around him.

Fact remains that USA has been main obstacle in exercise of sovereign rights of India and its foreign policies. There has been net flight of capital from India to USA whereas billion of dollars are pumped in to Pakistan at our cost by USA.

In short the plan of this visit was to appease US people by repeatedly stating that the orders booked by MNC’s will generate lot of jobs in USA. This to counter their rising protests in USA against IT coolie work and body shopping outsourced to Indians.

We have to watch what flak he receives when he lands back in USA.
I think the visit on occasion of Diwali turned out to be a dude cracker.
Sunday, November 7, 2010 | By: Darshak Hathi

The Myth of share Market

Currently the madness is going on in share markets largely driven by shady money inflow in name of FIIs.It is estimated that almost 40-50% of this money is coming through dubious set ups in countries like Mauritius and other places.

The market operators will always advise to invest in share markets as their bread and butter depends on them.The company promoters are biggest beneficiaries of this mad rush as their share has multiplied many many times of what they invested with little efforts.The media runs on the backing of such people who plant bull news in markets.

It is correct that any good average company in India would be looking for at least 15% return on its equity capital and that is not difficult to achieve also in next 10 years at least because thanks to our brainless and ill managed government India will face inflation rate at this figure.So companies will of course generate 15% growth earnings at least which effectively will be zero percent earning in real terms.As far as we can see today.At least for India it is true.

But that is not enough to invest.Take example of L&T share as on date.Its price today is 2171 per share of Rs 2 face value or 1085 times its face value.That is pretty odd.

Now EPS on this scrip in March 2010 ending was Rs 60 which means you earned 60/2171x100 or just 2.76% only in one year( it is earning and not dividen paid). Now suppose the share goes down by 10% which is very reasonable assumption.So straight away you loose 4 years earnings plus you loose 6% per year fixed deposit interest-your opportunity cost. In other words you will loose 34% earning of next 4 years.

Now the argument is that in shares the system does not work that way.Companies keep growing and that is reflected in PEG ratio or P/E ratio divided by annual EPS growth rate for next one year at least hwat finacial wizxards call forward or gamble earnings.So again if we see that earnings of L&T would rise by 50% next year.Okay so it will become 2.76x1.5 next year or 4.14 % a year on your investment which is still less than even 6% your FD interest rate.

In other words you can never make enough money on LT scrip even in next 10 years. Then why people are crazy and buying stocks even now?

The reasons are simple.There is too much liquidity of surplus money coming from abroad where interest rate is almost near zero percent(both USA and japan).There is too much money coming to HNIs and black marketeers and politcians and babus. The PEG ratios in USA are less as it is not easy to do open loot and plunder in USA as it is in India thanks to MM Singh type of people managing the country.The shares graph started rising when he took over.

The entire base of madness in stock markets is capital gains or assumption that scrip price will keep going up by 10%-20%-40% every year in coming times also.The big question is will they? and why should they at all?Can party last for more than 5 years at a stretch? It is a big million dollar question.No one can answer.But looks improbable.

Retail investors in India should not get carried away by cock and bulls stories and media publicity to make them suckers. Of Course there may be some good smaller companies which are under valued and are on growth trajectory.But no one will tell you to invest in them.At current valuations Indian stock markets don't merit any buying at all.Specially the leading scrips.if there are some companies who trade below P/E ratio of 7 or 8.There is something seriously wrong with them since in this mad market it is not possible that these have escaped attention of gamblers.There are softares that detect all types of companies by assigning criteria.

Even if markets don't go down and correct there is little charm left to enter now.The risk reward ratio is against the retail investor.
Unless you have surplus money and you are itching to try your hand in stock markets.

This FII money a good part of which is dirty money is main cause for excess liquidity and price rise in the country in other asset classes like gold and property.When these FIIs buy where the money goes? To existing share holders only and is not at all utilised in new productive assets creation ( that is FDI).When FIIs run away dumping shares who buys these? The rich people and operators in markets who wait for the next cycle of killing and loot.Too many dollars coming in India are appreciating rupee as RBI has stopped exchange rate control( Actually Indian rupee after 300% price inflation in country since Singh has come in power is not worth more than Rs 55 to a dollar).This is making imports cheap and exports costly.More imports means more foreign exchange or trade deficit.More costly export means export margins are falling as majority of our exporters are boneless low end producers who have to quote in dollars and with recession in main consuming markets they can't raise even dollar prices too.Hence the realisation in rupees is going down. I ask Infosys,TCS, Maruti and Tatamotors like companies to dare and quote exports to overseas buyers in Indian rupees if they have guts,quality and technology as they brag.How long they will fool people and demand concessions from indian government.

The fact remains that Indian comparative advantage is dwindling fast now due to meaningless and mad and huge rise in salaries and perks ,transport costs and other mad taxes in country. In other words Indian economy is being very badly managed knowingly and is in unsafe anti-poor hands today.There is systematic loot going on in country and share markets are part of that loot.Bold is beautiful. So take the plunge if you dare.

Mumbai Adarsh Cooperative Housing society Scam

The entire media - both electronic and print, are on fire reporting the scam in Mumbai Adarsh housing society. C.M. Chavan has offered to resign. He met Sonia Gandhi and offered to resign. Nothwithstanding Bofors,Vockers, KGB loot, Swiss loot etc, Sonia is the only person who is supposed to be honest in the Congress. So every one wants Sonia's opinion about accepting Chavan's resignation and appointment of a successor.

Sonia has set up a two member committee - Pranab and Antony to enquire into the matter and report. The committee will find that Chavan and his relatives are honest and in fact, they deserve a flat in Adarsh. And the committee will unravel another scam, involving the BJP to deflect the matter.

Sensational findings - Pranab poo pooed the Times TV finding. He thundered that as per the Army archives. the relatives of Chavan are eligible for housing in the Adarsh complex.
In fact, the relatives were Kargil heroes and heroines..

During the Kargil war, the relatives of Chavan were so much upset about Pakistan's back-stabbing and in line with Veer Shivaji's patriotism, they wanted to do something for the country. They went to the war area in-cognito without the knowledge of Army brass.
They tied 30 kgs of bombs around their waist and in the dead of the night, they climbed the Kargil hill top. From the top, they viewed the bunkers from where Pakistanis were firing and killing the Indians. Patriotism overflowed through their veins and shouting Bharat Mata Ki Jai, they dived into the bunkers. Fortunately, for them, the bombs got detatched and fell straight into the bunkers. What a sight it was! the bombs exploded, killing every Pakistaniit soldier and the rest is history.

Chavan's relatives were hurt during their jump. But they escaped death by the grace of Almighty. Since, they did not want to reveal their identity and patriotism, they trekked back, incognito to Bombay. When they reached Mumbai, all four looked as if they have woken up from the death bed. They went straight to Chavan's house and narrated the Kargil story. Chavan was ecstatic. He said that as a true congressman, he can reward
them handsomely. He immediately allotted the four flats for the 4 Kargil heroes/heroines. This incident could not get publicity because, the relatives did their job without the knowledge of the army and without permission from the Defence Ministry. So the whole incident was kept under a wrap. Now the time has come to tell the true story. Pranab shouted 'WHAT WRONG CHAVAN HAS COMMITTED? The Print and electronic media, shivered in their pants because, any questions to Pranab, may result in their losing the advertisement revenue.

One correspondent said that BJP has been campaigning for the ouster of Chavan. What you have to say now? Pranab's face became red with anger and he threw a red file to the journalists. He said, read it and you will find that BJP has wronged the widows of Sherpas.

Nobody could make head and tail out of this statement.Then Pranab explained that during Vajpayee's regime, Everest in the Himalays was allotted for the widows of Sherpas.
But CBI investigation has found that the space in and around Mount Everest has been occupied by Vajpayee and his relatives. Further investigations revealed that at the height of 20000 feet, the plots have been given to Shushma,Jaitely, Prasad and Pratap Rudy. Is it not a shame that patriotic sherpas are cheated by the BJP? the widows of sherpas are crying and feel cheated, he thundered and ended his press meet.


In the BREAKING NEWS, they further screamed that Vajpayee may be arrested and BJP banned for such a heinous crime and for cheating the Everest widows.

In the NEWS HOUR, Goswami had a discussion with a panel, consisting of Manish Tiwary, Jayannthi Natarajan, Prasad and Chari.As usual, Prasad and Chari never completed one sentence.

Goswami - tell me Mr.Tiwary - whether BJP should be banned and Vajpayee jailed for the heinous crime? Tiwari majestically killling the english language, said that CBI has already approached the Supreme Court for Vajpayee's custody and the cabinet will meet shortly to discuss the ban of BJP

FLASH NEWS - Supreme Court orders Vajpayee not to visit or climb Everest as the CBI feels, he may tamper with the evidence. Bunkum Chatterjee, the Supreme Court judge ordered Vajpayee to leave Delhi immediately and go to Southern India and not to return to Delhi, until further orders.

BREAKING NEWS - Chatterjee will take over as chairman of Monopolies and Restrictive Commission after his retirement tomorrow. Both Manmohan and Sonia are very much pleased with Chatterjee's patriotism.

Rahul Gandhi who was travelling in bullock cart in Calcutta, was surrounded by Pressmen.
One of them asked Rahul - Zardari is corrupt and he always wears a full suit. Vajpayee is also proved corrupt in mount Everest land grab and he is always wearing Pyjama and Kurta. What is the difference between the two? Raul Vinci in his inimitable style said that there is no difference between full suilt and pyjama kurta. Both are same.

The media, both print and electronic, was ecstatic. They termed Raul Vinci as the best utterer of ONE LINERS.

Some Pressmen, interviewed Sushma Swaraj and asked her whether Modi was allotted a plot in Everest. Sushma casually replied that Modi's majic cannot work in Everest.

CNN-IBN interviewed Manish Tiwary exclusively. Tiwari made another startling revelation.
According to him, Modi has illegally grabbed 10 Sq.miles of Arabian see. Rajdeep, asked Tiwaari as to what is the benefit for Modi. Manish Tiwari, thundered that in future riots, Modi will dump the muslim bodies in Arabian see so that nobody can count the number of muslims killed.

During the Independence Day, President Patil announced Maha Vir Chakra to the 4 relatives of Chavan for their bravery in Kargil.

Bal Thackery wrote in Saamna that the marathis are always brave. They have Shivaji's blood running in their veins.And he warned the ruling party, not to fix decibal scales for his speeches. Nobody on earth can control the decibals of a roaring tiger, he thundered.

Raj Thackery demanded that the all the flats in Adarsh Housing society should be allotted only for Maharastrian war heroes and heroines. If non-Marathis do not vacate within 24 hours, his volunteers will do the evacuation job.

That evening, people saw of theEx.Army and Ex.Navy chief, and other top defence brass,
waiting in the V.T,station to board Delhi and Punjab bound trains.

Long live Bharat.
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