Arvind Kejriwal strikes again - targets Swiss Account holders

Account Holders in Swiss Banks are the target of Arvind Kejriwal's recent expose and on top of the list of then names taken by the anti-graft crusader are Mukesh Ambani, Anil Ambani and some of their companies including the Reliance Industries Ltd.

This time the shares of Reliance Industries (RIL) reacted even as Kejriwal was addressing the media. The stock closed down 1%, while Anil's Reliance Communications (RCom) end down by 2.2%.

The center of Arvind's exposure was HSBC's alleged role in transferring the moneys to-and-from HSBC's Swiss branch.The names taken by Arvind as he made the disclosures today read like the who's who of Indian industry - The Burman's of Dabur, Goyal of Jet Airways.

According to the expose - In July 2011, Indian Government received a list of roughly 700 people having bank accounts in HSBC, Geneva. The list contains bank balances of these people in 2006. Even the name of Kokilaben Ambani - mother of Mukesh and Anil Ambani - is supposed to have been in the list of account holders, although the balance in the account was nil.

Today's expose by Arvind Kejriwal has once again raised questions on the loyalty and honesty of the Indian politicians.

It remains to be seen how long the government can go on without ordering an all out probe into the corrupt practices of the people in high places within the government and outside.

One thing is certain - the Indian Economy is headed for a major shake down.

US markets tanked when Obama won!!!

Apparently the stock markets had gambled that Republican Party would beat Obama, and that is why the US stock markets fell by around 2%.

I actually found this reaction of the market forces surprising.

America has traditionally voted its Presidents power for a second term. There are very few instances when a US President was ousted after his first term.So, I think it was surprising when the markets reacted as if they had not expected Barack Obama to win.

Some experts on the television mentioned that the markets were reacting to the fiscal deficit and other economy related challenges the newly elected President is facing, but am unable to accept this discussion.

Even Mitt Romney would have faced the same challenges. And, given the financial mess the US is in since early 2008, I don't think even he would be in a position to do anything radical to change the country's fiscal condition.

Reliance v/s Arvind Kejriwal

Arvind Kejriwal's latest allegations against Reliance have rather serious implications for the Indian Economy.

The Allegations

Arvind Kejriwal has this time targeted the biggest industrial establishment of India - Reliance Industries Ltd. He has claimed that Mukesh Ambani used his financial clout to manipulate government policies and wrongfully renegotiate the price at which his company Reliance Industries sells gas to the government.He has even alleged that Reliance is infact blackmailing the government to increase the rate by more than 3 times.

He further charged that 2 ministers were moved out of the Oil Ministry for their stand against Reliance's request.

If the allegations are true then below are the Implications - As I see them

• There are ministers who are not willing to give into the pressure from biggies like Mukesh Ambani.
• The increased cost will be passed on to the common man in the form of higher taxes and / or tariffs.
• If the jump in prices, as sought by Reliance, goes through - the cost of electricity and fertilizers is going to shoot through the roof.
• Reliance will make a huge-huge profit. It is already making profits at the current prices - the entire threefold jump will be pocketed by the company.

If the allegation are not true then It will spoil the industrial environment of the country.

RBI reduces CRR, Sandy lashes New York

There have been two major events effecting our economy happened today...

First Event: RBI reduces CRR

RBI has infused about Rs 17500 crore into the system by reducing CRR by 0.25%. The news was not received very well by the bourses that were looking forward to and had actually factored in a reduction in the rates.

BSE tumbled about 200 points while NSE tumbled below the 5600 mark.

Second Event: Hurricane Sandy has lashed the East Coast of the USA

Hurricane Sandy  battered the East Coast of the USA. It has ravaged New York the world's biggest and busiest commercial center. Reports of several deaths have also started trickling in taking the toll higher with each report.Once Sandy passes, the actual reports of losses of property and life will start coming in.

Power outage has impacted more the 6 million people.

New York Exchange was shut down for the second consecutive day. Trading is expected to resume on Wednesday.

Cheque Bouncing could also lead to a cheating case also

In future, if you issue a cheque without sufficient balance in your account be careful, besides a cheque bouncing case you could also be tried for cheating.

Supreme Court of India, today, ruled that the two trials do not breach double jeopardy doctrine.

The decision was delivered by a bench of Justice B. S. Chauhan and Justice J. K. Khehar while dismissing an appeal for quashing a criminal case of cheating and breach of trust pending before a Chief Judicial Magistrate in Gujarat.