Press Release: Crony Capitalism in Tamil Nadu
Press Release: Crony Capitalism in Tamil Nadu
Press Release: Crony Capitalism in Tamil Nadu
Many of the companies controlled by Ms Sasikala and group were formed with Rs 1 lakh capital. There have been a lot of financial transactions happening between these companies helping one another acquire shares in other companies. For example, Shri Jaya Finance and Investments have got share application money to the tune of more than Rs. 5 crores from Shri Jaya Publications between 2005-2012 [Reference 7]. According to the affidavit of Ms J. Jayalalithaa in her 2011 nomination papers, she is a partner in Shri Jaya Publications [Reference 8]. While the shares have not been allotted, money got through such means has been used to invest in other companies. Sri Jaya Finance and Investments then bought 38% shares in Hot Wheels Engineering Private Limited in the year 2008-09 [Reference 9]. Hot Wheels Engineering Private Limited have further bought 35% shares in MIDAS in the year 2009-10 [Reference 10] which increased to 48.37% in the year 2010-11 [Reference 11]. Apart from this, Ms J.Jayalalitha has given an unsecured loan of Rs 1.85 crores to Shri Jaya Finance and Investments in the year 2008-09 which increased to Rs 1.92 crores in 2009-10 and was not returned as of 2011-12 [Reference 7]. DMK during its stint between 2006 to 2011 had given license to 2 companies close to it. Elite Distilleries Private Limited was given license in 2008 and its Revenue increased from 0 in 2007-08 to 712 crores in 2011-12 and then decreased to 466 crores in 2012-13 after AIADMK came to power [Reference 3]. SNJ Distilleries Private Limiteds Revenue increased from 0 in 2008-09 to 940 crores in 2011-12 and then decreased to 834 crores in 2012-13 [Reference 3]. Elite Distilleries is majorly held by J. Hotels Private Limited (44.38% shareholding) and Hindustan Constructions (55.48% shareholding) [Reference 12]. J. Hotels Private Limited was in turn owned by DMK MP S. Jagathrakshakan (50% shareholding) and his wife Mrs. J. Anusuya (49% shareholding) until 2008 [Reference 13]. The shareholdings were later transferred to their son Mr. J. Sandeep Anand who now owns 99.75% shares [Reference 14]. Hindustan Constructions was in turn owned by his wife Mrs. J. Anusuya and his son Mr. J. Sandeep Anand [Reference 15]. SNJ Distilleries Private Limited is owned by Mr. S.N. Jayamurugan (50% shareholding) and his wife Mrs. J. Geetha (50% shareholding) [Reference 16]. Mr. S.N. Jayamurugan produced 2 films on the script penned by Mr. M. Karunanidhi Uliyin Osai (2008) and Pen Singam (2010) both of which flopped. SNJ Distilleries got license in 2008. Liquor has become a major socio-political-economic problem in Tamil Nadu. The state has gone beyond all possible ways to promote alcohol as against Article 47 of the Directive principles of our constitution over the last decade. The increase in revenues of TASMAC from 3,639 crores to 21,680 crores within a period of 9 years
signifies the rate of increase of alcohol addiction within a decade. This has become the most important problem for women in the state of Tamil Nadu. Women of Tamil Nadu are taking the maximum brunt with increased domestic violence, spending of huge sums of money on health care costs of husband and in many families they have become the only bread winner. TASMAC has been flouting and violating all rules including selling alcohol under age group of 21 and many of its shops located within 100 m of educational institutions and places of worship. Most bars are owned by AIADMK and DMK men and hence from top to bottom, TASMAC signifies how peoples lives are being ruined to favour the profit of AIADMK and DMK people. The protests of many social organizations have been in vain primarily because both Ms. Jayalalithaa and Mr. Karunanidhi have been focusing on filling up the wallets of their party people rather than welfare of the people.
Ms.
V.K.
Sasikalas
family
and
The sea beach along Manavalakurichi in Kanyakumari district in Tamil Nadu is unique in many ways. It has the worlds largest deposit of monazite, ilmenite, garnet, zircon and rutile, all strategically and economically important minerals and metals. The monazite from Manavalakurichi contains 12 per cent thorium. Prof V Rajamanickam, Indias leading marine mineral explorer and a geochemist of repute, says that Manavalakurichi is home to worlds 30 per cent thorium deposits. The value of 30 per cent thorium reserves of the world at Manavalakurichi is 720 times more than the 2G spectrum scam, according to leading geologists. What is not known to the outside world is that a Tirunelveli businessman, Mr. S Vaikuntarajan, literally controls the beach sand mining industry in southern Tamil Nadu. Directly and indirectly he owns a large number of the garnet mining licenses issued by the Indian Bureau of Mines. The mining baron has become rich by exporting ilmenite, rutile, garnet and zircon. S. Vaikuntarajan of V.V. Minerals (the firm which has been accused of illegal beach mineral mining) held major shares in MIDAS Golden Distilleries Private Limited and Curio Auto Mark Private Limited until 2009. Between 2003-04 to 2008-09, 87.21% of MIDAS was owned by Mr. S. Vaikuntarajan (V.V. Minerals) and family:
Mr. S. Vaikuntarajan 30.07% shareholding Mr. S. Jagatheesan 22.69% shareholding Mr. S. Chandresan 19.78% shareholding S. Vaikuntarajans wife Mrs. Chandara Bupathi 2% shareholding S. Jagatheesans wife Mrs. J. Renuka 1.8% shareholding And their Thisayanvilai counterparts Mr. SDK. Rajan (6.15% shareholding), Mr. D. Devaraj (2.04% shareholding) and Mr. D. Gnanaraj (2.67% shareholding) [Reference 17].
MIDAS was favoured heavily during the previous AIADMK regime as well and procurement went up from 12.85 lakh cases in 2003-04 to 51.04 lakh cases in 200506 [Reference 18], within a year of nationalizing alcohol retailing benefitting Mr. S. Vaikuntarajan and Co. Between the year 2005-09, there has been lot of financial transactions between companies owned by S. Vaikuntarajan and Companies and firms in which Ms. Jayalalithaa, Ms. V.K. Sasikala and her relatives have interest. For example, as of 2005-06, Sri Jaya Finance and Investments have got share application money of Rs 4.78 crores from Shri Jaya Publications [Reference 19]. As of 2011 affidavit filed by Ms J. Jayalalithaa for the assembly elections, she is a partner in Shri Jaya Publications [Reference 8]. Using this money, Shri Jaya Finance and Investments gave an advance of Rs 3.06 crores to Fancy Transports Private Limited [Reference 19] which is owned by Mr. S. Vaikuntarajan and his brother [Reference 20]. The shares of both MIDAS and Curio Auto Mark Private Limited been bought over in 2009-10 by Ms. V.K. Sasikala and her relatives. Apart from this there are 9 other companies that are controlled by one person. The list of 11 companies are MIDAS Golden Distilleries Private Limited, A World Rock Private Limited, Hot Wheels Engineering Private Ltd, Aviry Properties Private Ltd, Sri Jaya Finance and Investments Private Limited, Signet Exports Private Limted, Khazzana Finvest Private Limted, Fancy steels Private Limited, Curio Auto Mark Private Limited, Cottage Field Resorts Private Limited, Sri Hari Chandana Estates Private Limited. All these companies are interrelated to each other. When Ms. V.K. Sasikala was expelled from the AIADMK party in December 2011, Directors of all these companies were replaced by people close to Ms. J. Jayalalithaa. For example, Mr. Cho Srinivasan Ramasamy was appointed as Director of 9 Companies on one single day - 16th December 2011 [Reference 21]. Mr. S. Poongundran, known as a close aide of Ms. J. Jayalalithaa was appointed as Director of 9 companies on one day - 16th Dec 2011 [Reference 22]. Two people namely Mr. Karthikeyan Kaliaperumal [Reference 23] and Mr. Sivakumar Koothiappar Sathiyamoorthy [Reference 24] became Directors of most of these companies on 15th June 2012 after Sasikala rejoined the party. Mr. Cho Ramasamy and Mr. S. Poongundran got out of the company on 8th
November 2012 and 4th March 2013 respectively. This very clearly shows that all these companies are controlled by one person. Mr. S. Vaikuntarajan and his family holds around 5.55% share in Mavis Satcom Limited which runs Jaya TV [Reference 25].
In all this, it is the common man who has been taking the major hit. Both AIADMK and DMK are different sides of the same coin. These parties have repeatedly used their powers to favour themselves and their close network. DMK demonstrated money power in Thirumangalam by-election and AIADMK repeated it in Yercaud by-election. The money they throw in elections is just a small fraction of the huge money they make out of such crony capitalism and favouritism. Let us common people take control over our own lives!! Let us arise and awake to the decades of corruption and crony capitalism of AIADMK and DMK to benefit their family and partymen. Let us save Tamil Nadu from this Oligarchy!!!
References: 1. Article by Wikipedia on TASMAC. 2. HC directs TASMAC to frame guidelines on issue of orders - The Hindu dated March 14, 2014. 3. Commercial Taxes Department at a glance, Statistics and Research cell, Office of the Commissioner of Commercial Taxes, Chennai - 2010-11, 2011-12, 2012-13. 4. Midas Golden Distilleries Private Limited Annual Return for FY 2012-13. 5. Hot Wheels Engineering Private Limited Annual Return for FY 2010-11. 6. Shri Jaya Finance and Investments Private Limited Annual Return for FY 201112. 7. Shri Jaya Finance and Investments Private Limited Annual Report for FY 200506 to 2011-12. 8. Affidavit of Ms. J. Jayalalithaa in Tamil Nadu Assembly election 2011. 9. Hot Wheels Engineering Private Limited Annual Return for FY 2008-09. 10. Midas Golden Distilleries Private Limited Annual Return for FY 2009-10. 11. Midas Golden Distilleries Private Limited Annual Return for FY 2010-11. 12. Elite Distilleries Private Limited Annual Return FY 2010-11. 13. J Hotels Private Limited Annual Return FY 2007-08. 14. J Hotels Private Limited Annual Return FY 2008-09. 15. Asset declaration by Mr. S.N. Jayamurugan has declared by Prime Minister Office during 2011 in Association for Democratic Reforms. 16. SNJ Distilleries Private Limited Annual Return FY 2011-12. 17. Midas Golden Distilleries Private Limited Annual Return for FY 2008-09. 18. Karunanidhi quotes statistics on liquor procurement The Hindu dated 31, May 2006. 19. Shri Jaya Finance and Investments Private Limited Annual Report for FY 200506. 20. Fancy Transports Private Limited Annual Return for FY 2005-06. 21. List of Directorship of Mr. Cho Srinivasan Ramasamy from Ministry of Corporate Affairs website. 22. List of Directorship of Mr. S. Poongundran from Ministry of Corporate Affairs website. 23. List of Directorship of Mr. Karthikeyan Kaliaperumal from Ministry of Corporate Affairs website. 24. List of Directorship of Mr. Sivakumar Koothiappar Sathiyamoorthy from Ministry of Corporate Affairs website. 25. Mavis Satcom Limited Annual Return for FY 2012-13. 26. Ousted collector says sand mafia is spreading fear Times of India dated August 8, 2013. 27. Jayalalithaa orders probe into functioning of beach mineral mines The Hindu dated September 17, 2013.
For Media Contact: Mr. Balaji: 98842 69094 For soft copies: [email protected] For Live and Video: http://bit.ly/1ieih6w