Scam-tainted money may be moving the markets

Description

From the spectrum scam to CWG, we should look at where the money is coming or going. The money is coming from the tax havens and some of it is moving in and out of stocks. The financial accounting course taught in every commerce college and business school Accounting 101 includes a discussion on the sources and uses of funds. In all the discussions on the scams pertaining to the Commonwealth Games (CWG), the Indian Premier League or the 2G spectrum, the focus is on sources, not uses. For instance, in the case of the 2G spectrum scam, which involves an opportunity loss of upto Rs1,76,000 crore to the national exchequer, the documents indicate that a substantial portion of the funds for the bidding came from tax havens like Cyprus, Channel Islands and Mauritius. The last date for the submission of applications was advanced from October 1, 2007 to September 25, 2007 through an announcement made much after that period was over. On January 10, 2008 the department of telecommunications (DoT) posted an announcement on its website around 2.45pm saying letters of intent for telecom licences along with spectrum would be issued between 3.30-4.30pm that afternoon and that application fees (worth over Rs1,000 crore) would have to be paid immediately by demand draft along with the supporting documentation. Read more at: https://www.dnaindia.com/analysis/main-article-scam-tainted-money-may-be-moving-the-markets-1470560

Publication Date

23-11-2010

Publication Title

DNA

Publisher

Diligent Media Corporation Ltd.

Keywords

Corruption, Spectrum scam, Commonwealth Games, CWG, 2G spectrum

Source Link URL

https://www.dnaindia.com/analysis/main-article-scam-tainted-money-may-be-moving-the-markets-1470560

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