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Sebi bars Anil Ambani, 3 others from markets for alleged siphoning of funds

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Sebi bars Anil Ambani, 3 others from markets for alleged siphoning of funds

The Securities and Exchange Board of India (Sebi) has banned Anil Ambani and three partners from the capital markets for allegedly stealing funds from Reliance Home Finance (RHFL). Regulators have also restricted them from working with any public company, stock market intermediary or any public company that intends to raise capital.

The restrictions will remain in place until further notice, Sebi said in an interim order instructing Ambani and several others to “show reasons” why further action and investigation should not be taken against them.

“This misconduct by Noticee no. 2 (Anil Ambani) as the company/group chairman, first with the fraudulent intent of the company’s top management, to transfer the company’s borrowed funds to genuine third-party borrowers to various originators People’s Vault Group entities disguised as a series of false GPCs (General Corporate Loans) and then cover up the losses and NPAs caused by such deals by concealing the company’s actual financial health from shareholders and the general investing public who will never know RHFL of their true financial status, by looking at the fabricated books submitted to them through the stock exchange,” the Sebi order said.

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In a letter dated April 18, 2019, auditing firm PricewaterhouseCoopers highlighted certain observations and sought responses from company executives and the audit committee. The auditors highlighted that the loan amount disbursed by RHFL under the GPC loan has doubled from Rs 9,000 crore as at March 31, 2018 to about Rs 7,900 crore as at March 31, 2019.

PwC also highlighted that borrowers have negative net worth and have limited or no income and profits.

Investigations revealed that several of the borrowers were RHFL group companies.

Another forensic audit was conducted by a consortium of RHFL lenders led by Bank of Baroda.

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The forensic auditor observed that RHFL disbursed Rs 14,577 crore as GPC loans to numerous entities, of which Rs 12,487 crore was disbursed to 47 potentially indirectly related entities (PILE).

Another report highlighted that 150 loan cases fell under the PILE category between FY 2017 and FY 2019. Of these, there are still 100 loan cases totalling Rs 8,884 crore in RHFL’s books.

Sebi also launched its own investigation, which found several irregularities in the loan disbursement process, as well as collusion among senior officials to siphon funds from the RHFL.

“To sum up, all of the above notifiers have worked together through complicity with the appropriate help and abetting of other notifiers to translate predetermined plans into action, resulting in the withdrawal of substantial funds from the accounts of the RHFL, a significant part of which must be Declared as NPA shortly after the sanctions,” noted Sebi Order of full-time member SK Mohanty.

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Complete News Source: Business Standard

Pahalgam Attack

Pachigam attack aftermath: International airlines avoid Pakistani airspace amid tensions with India

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Pachigam attack aftermath: International airlines avoid Pakistani airspace amid tensions with India

Due to a lengthier path, Lufthansa Flight LH760 from Frankfurt to New Delhi had to fly for over an hour longer on Sunday. Major foreign airlines, including Air France and Lufthansa, are avoiding Pakistani airspace as tensions between India and Pakistan remain high after a deadly terrorist assault in Pahalgam, Jammu and Kashmir, according to airlines and flight trackers on.

Monday. Air France agreed, stating that it had decided to halt flights over Pakistan due to the “recent evolution of tensions” between the two South Asian foes. “The airline has decided to suspend overflight of Pakistan until further notice,” Air France said in a statement, referring to the “recent evolution of tensions” between India and Pakistan The airline currently changing.

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In the wake of the recent Pachigam terror attack, a significant shift in international aviation routes has occurred. Following an uptick in security concerns and rising geopolitical tensions between India and Pakistan, several international airlines have opted to avoid Pakistani airspace, rerouting their flights to ensure passenger safety. The decision comes nations.

The Pahagam Terror Attack: A Trigger for Renewed Tensions

On the night of the attack in Pachigam, a popular tourist destination in Jammu and Kashmir, militants carried out a series of strikes on civilian and military targets. The assault left a number of casualties, both military personnel and civilians, sparking widespread condemnation. The attack, attributed to militant groups operating from across the border.

Airlines’ Concerns Over Safety and Security

In response to the escalating threat in the region, several international airlines, including prominent carriers from Europe, the Middle East, and Asia, have started to reroute their flights to avoid crossing Pakistani airspace. These precautionary measures, while not unprecedented, are a direct reflection of the security situation that has worsened in the wake of the attack.

Airlines typically rely on international aviation corridors for the fastest and most efficient flight paths, and Pakistani airspace has historically been a critical component of many international routes connecting Europe and Asia. However, in light of the heightened risk of military conflict, commercial carriers have begun to take proactive steps to avoid the region.

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European carriers, such as Lufthansa and Air France, have adjusted their flight paths over the past few weeks, choosing to bypass Pakistan altogether. Similarly, Middle Eastern giants, like Emirates and Qatar Airways, have rerouted certain flights to avoid potential risks associated with flying in close proximity to the disputed borders. These changes have led to longer flight.

The International Air Transport Association (IATA) has noted that these changes, while necessary, come with considerable logistical and financial consequences. Airlines must navigate alternative routes, which may lead to higher fuel consumption and longer durations of travel. Nevertheless, passenger safety is the highest priority, and the industry remains.

Diplomatic Implications and Regional Stability

The rerouting of international flights has far-reaching implications, not only in terms of aviation logistics but also for regional diplomacy. The decision to avoid Pakistani airspace can be seen as a subtle but clear indication of the international community’s concerns regarding with the growing uncertainty in the region, underscores the volatile nature of South the security situation between India and Pakistan. Such moves may further isolate Pakistan.

The Future of Aviation in the Region

As the situation unfolds, the aviation industry is closely monitoring developments. For international carriers, navigating the delicate balance between commercial operations and national security concerns is no small task. In the coming weeks, further changes in flight patterns are expected, depending on how the diplomatic and military tensions between India.

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