PGDM BATCH 2021-2023

LEGAL ASPECT OF
BUSINESS

NAME : AIMASH ALBAB

SECTION : C

ROLL NO : A-3

SUBMISSION TO : RENIN SIR

DATE OF SUBMISSION : 30/10/2021

FRAUD
DHFL-UPPCL fraud case: ED
provisionally attaches assets worth Rs
578 crores

The Enforcement Directorate Tuesday provisionally attached assets worth Rs. 578
crore of M/s Wadhawan Global Capital (UK) Ltd (WGC-UK), a company owned
by Kapil and Dheeraj Wadhawan, the arrested promoters of Dewan Housing
Finance Corp. Ltd (DHFL). The provisional attachments have been made under the
provisions of the Prevention of Money Laundering Act, 2002 (PMLA) in the
DHFL-UPPCL fraud case.
The attached assets are in the form of investments made by Wadhawans through
WGC-UK in UK based companies, the agency said in a press release.

Earlier in June, Piramal Capital and Housing Finance Ltd received a bankruptcy
court’s approval to acquire DHFL for Rs.37,250 crore, but with a few conditions.
had initiated money laundering investigation based on the predicate offence
registered by the Lucknow police against certain officials of Uttar Pradesh Power
Corporation Ltd. (UPPCL) under certain the sections of the Indian Penal Code,
1860 for alleged illegal investment of GPF and CPF funds of the employees of the
UPPCL into a private company namely DHFL in violation of government’s
notification and directives.
“… the investigation by ED, it is revealed that DHFL in connivance with UPPCL
officials had illegally received Rs 4122.70 Crore of GPF and CPF funds of
UPPCL’s employees in fixed deposit in DHFL. Out of this total investment of Rs
4122.70 crore by UPPCL in DHFL, Rs 2267.90 Crore of principal amounts of
provident fund (GPF+CPF) of UPPCL is still outstanding to be paid by DHFL,”
the ED statement read. “… These illegal investments had been received by the
DHFL during the period, where DHFL was engaged into disbursement of high
value loans to its promoter related companies. All such unsecured loans had been
sanctioned as per the directions of the Chairman of DHFL, Kapil Wadhawan and
many of such loans have turned into NPA. Investigation has also revealed that
many of these loans have been siphoned-off without utilising of the same for the
purposes, it was sanctioned. Further part of the proceeds of crime, amounting to
more than Rs. 1000 Crore, generated in this case has been siphoned off to UK by
the Wadhawans by way of 7 levels of layering and laundering through more than
30 beneficially owned /controlled Indian companies of Wadhawans,” the statement
added.

Earlier, ED has attached properties worth Rs. 1412 Crore of Wadhawans in Yes
bank DHFL fraud case and has arrested Kapil Wadhawan and Dheeraj Wadhawan,
who are still in judicial custody. Further ED has also seized five High End
Vehicles of Wadhawans having approximate value of Rs. 12.59 Crores in this case.

BREECH OF CONTRACT

NSO ended Pegasus contract with UAE

over Dubai leader's hacking

The Israeli-based NSO Group ended its contract with the United Arab Emirates to
use its powerful "Pegasus" state spyware tool because Dubai's ruler was using it to
hack the phones of his ex-wife and some close to her, her lawyers told England's
High Court.

Sheikh Mohammed bin Rashid al-Maktoum, vice president and prime minister of
the UAE, instructed the hacking of six phones belonging to Princess Haya bint al-
Hussein, her lawyers and security team, England's High Court ruled in a in a
judgment which was made public on Wednesday.The hacking took place last year
during the couple's ongoing multi-million dollar custody battle in London over
their two children.
During the hearings, the court heard that NSO had cancelled its contract with the
UAE for breaching its rules on using Pegasus, a sophisticated "wiretap" system
used to harvest data from the mobile devices of specific suspected major criminals
or terrorists.

"Whenever a suspicion of a misuse arises, NSO investigates, NSO alerts, NSO

terminates," NSO, which only licenses its software to government intelligence and
law enforcement agencies, said in a statement after the rulings were published.
It said it had shut down six systems of past customers, contracts worth more than
$300 million. NSO did not go into specifics. The sheikh rejected the court's
conclusions, saying they were based on an incomplete picture. "I have always
denied the allegations made against me and I continue to do so," he said in a
statement. The hacking of Haya and those connected to her, including her lawyer
Fiona Shackleton, a lawmaker in Britain's House of Lords, came to light at the start
of August last year.

A cyber expert studying the possible use of Pegasus against a UAE activist realised
the phones were being hacked and passed on the information, according to
documents and evidence given to the court.
At the same time, NSO was alerted by a whistleblower that the software was being
misused to target Haya and her legal team, a source familiar with the company told
Reuters.

It immediately informed Cherie Blair, a high-profile British lawyer hired by NSO

to work as an external adviser on human rights, to get a warning to the princess.

Within two hours, the company shut down the customer's system and then
prevented any other client from being able to use Pegasus to target British member.

Problem

Blair, wife of former British Prime Minister Tony Blair, said in a statement to the
court: "During a conversation with the NSO senior manager, I recall asking him
whether their client was the big state or the little state, the manager clarified it was
the little state which I took to be the state of Dubai."

She told Shackleton that NSO had immediately stopped the country involved using
Pegasus, and had demanded answers.

"Cherie Blair s . "Cherie Blair said if they weren't using the software to find
genuine terrorists, they had a problem," Haya's lawyer Charles Geekie told the
court. "Her client did not want to be connected to this type of behaviour and
wanted to help."

In a letter to the court on Dec. 14 last year, NSO said it had cancelled its contract
with its client, who the company declined to identify.

"As the NSO letter of December 2020 makes plain, after its investigation NSO has
adopted the extreme

INDEMINITY
Tata Group may ask for indemnity clause
in Air India Privatisation deal

The Tata Group may ask for an indemnity clause in the Air India privatisation deal
in order to protect itself from unexpected claims even as it intensifies due diligence
on the government-owned airline. Tata Group officials said requesting an
indemnity clause to be inserted in the final transaction contract is expected given
the possible risks arising from recent claims filed by Devas Multimedia and Cairn
Energy, seeking to seize Air India's overseas assets.

To complete the transaction, the group has put together a crack team comprising
M&A specialists from group operating companies such as Vistara, AirAsia, Tata
Steel and Indian Hotels, apart from the Tata Sons M&A team, to pore over minute
details, an official said.
The Tatas may also seek a sovereign guarantee against any pre-acquisition claims
that Air India faces, as experts say an indemnity in favour of the acquirer may be
limited in terms of time and value. Last month, shareholders in Devas Multimedia
sued Air India to recover money Devas won in arbitration awards against the
Indian government, according to a US district court filing. The shareholders said
Devas and its affiliates were owed more than $1.5 billion by the government

Prior to that, Cairn Energy had sued Air India last month to enforce a $1.2 billion
arbitration award that it won in another tax dispute case against India.

"This is a massive and complicated exercise. But we have done complicated M&A
deals with the government in the past such as VSNL and also recently 
Bhushan Steel
 NSE 0.88 % which gives us the knowledge and understanding to handle such
issues," a Tata Group official close to the Development Said. It is not unusual for
claims against a target company to start appearing just before an acquisition and
there could be other claimants that may file proceedings against Air India in the
weeks prior to the acquisition by the Tatas," he said.

Of Air India’s total enterprise value, 15% will go to the government and the
balance will be used to reduce existing debt. The total debt of Air India (according
to provisional figures of 2019-20) stands at Rs 38,366.39 crore after transfer of
debt a of debt amounting to Rs 22,064 crore to the special purpose vehicle called
Air India Assets Holding Ltd in FY20 , the civil aviation ministry told Rajya Sabha
early this year.

MISINTERPRETATION

Jim O’Neill says his comments on India's

response to coronavirus misinterpreted
Backtracking from his earlier statement that he was thankful the coronavirus
outbreak started in China and not in India, British economist Jim O’Neill has now
clarified that his comments got misinterpreted and it was not what he meant to
convey.

“So let me just say it is very unfortunate how my comments appeared in March and
I regret after how I said it,” the former Goldman Sachs chairman said in an
interview.

“What I was really meaning is if you look at the nature of how India society is
today, particularly the complexities of an urban life and (with) many people
(living) particularly in the shanty towns and slum dwellings -- by definition it is
difficult to control something like this,” he told ETMarkets.com.

In mid-March, O’Neill had said on CNBC he was thankful that the coronavirus
pandemic did not start in India. "Thank God this didn’t start in somewhere like
India, because there’s absolutely no way that the quality of Indian governance
could move to react in the way that the Chinese have done, that’s the good side of
the Chinese model, and I think you could probably say the same about Brazil too,”
he had said in a panel discussion on CNBC. His snide comments had drawn
widespread ire from Indian officials. Indian High Commission Minister Vishwesh
Negi told CNBC that O’Neill’s comments were "ill-informed and irresponsible."

Seven months later, the economist now says that even though his comments didn’t
go well, the rapid spread of coronavirus confirmed his fears.

“It is just so hard and even though my comments upset people, the size of the
infection's increase in India unfortunately confirms what I said. And that's what I
really meant. If it would have started there it probably would have been a long time
before anybody realized actually what it was,” he said.

O’Neill, who coined the term BRICS 19 years ago, said it is very fortunate that
India has a good recovery rate and a low mortality rate.
India is currently the second-most impacted nation from Covid-19, after the United
States. The country now has 66,23,815 total cases of coronavirus, including
9,34,427 active cases and 55,86,703 recoveries. A total of 1,02,685 people have
lost their lives to the deadly virus till now.
On the brighter side, India continues to occupy the top position with the maximum
number of Covid-19 recoveries and accounts for 21 per cent of the recovered cases
worldwide, while its share in the total cases stands at 18.6 per cent, the Union
Health Ministry said.
India has also maintained its global position with one of the lowest Covid-19 case
fatality rates (CFR) when compared to several other countries.

O’Neill also pointed out that countries like India and many parts of Africa, with a
younger population, seem to be suffering from lower mortality rates than countries
with older populations.

UNILATERAL CONTRACT

PM Modi slams protectionist, unilateral

trade moves

Prime Minister Narendra Modi on Friday criticised unilateral and protectionist

decisions in trade, seeking instead a rules-based, anti-discriminatory and WTO-led
inclusive system that would address the needs and aspirations of stakeholders
globally.

“We need a rules-based, transparent, anti-discriminatory, open and all-inclusive

WTO-centred multilateral trading system focused so that the interests of every
country, especially the developing ones, can be taken care of,” the Prime Minister
said.

The Shanghai Cooperation Organization’s (SCO) joint communique echoed the

Indian Prime Minister’s sentiments. “They (member states) believe that unilateral
protectionist actions in violation of WTO rules and regulations undermine the
multilateral trade system and threaten the world economy and trade,” the SCO
statement said. “(They) note that the WTO remains a key body for discussion of
the multilateral trade agenda and formulation of the multilateral rules of
international trade 

ET had reported on Monday that India would join China and Russia at SCO for an
effective multilateral trade system. “While confirming their commitment to the
fundamental principles and rules of the WTO, the SCO member-states support
greater efforts to improve the efficiency of the organisation,” said the joint
communique.

BILATERAL CONTRACT

India, Bangladesh reaffirm commitment

to further strengthen bilateral
cooperation

India and Bangladesh have reaffirmed their commitment to further strengthening

the expanding multifaceted cooperation, as foreign ministers of the two nations
met in Tashkent and discussed a range of issues, including the bilateral and
regional connectivity, COVID-19 and the repatriation of the Rohingya refugees to
Myanmar.

External Affairs Minister S Jaishankar and his Bangladeshi counterpart AK Abdul

Momen met in Uzbekistan's capital on the sidelines of an international conference
on the sidelines of an international conference on the challenges and opportunities
of regional connectivity in Central and South Asia on Thursday.
They discussed a range of issues, including the bilateral and regional connectivity,
COVID-19 and vaccination situation in both the countries and the repatriation of
the Rohingya to Myanmar, bdnews24.com reported
Both sides reaffirmed their commitment to further strengthening the partnership
and expanding multifaceted cooperation. They also emphasised the need for
resuming the activities of various joint mechanisms soon after the COVID scenario
in both countries improves.

Jaishankar expressed his “happiness as the supply of vaccination to Bangladesh is

back on track from a diversified external source, including under COVAX
arrangement”, the foreign ministry said here in a statement.

Bangladesh so far was dependent on India's Serum Institute.