II PU paper leak: CID hunts for key suspect; results likely to be delayed

Abu Dhabi, Feb 17: NMC Health Plc, a hospital operator targeted by short-seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid investor concern he faced a margin call and misrepresented his stake.

The board asked for Co-Chairman Shetty’s resignation and it takes effect immediately, according to a person with knowledge of the situation. NMC has lost four board members since Friday, including Vice Chairman Khaleefa Butti, whose holdings are also being probed. The stock, the worst performer on the FTSE-100 Index this year, fell as much as 9.2 percent Monday morning and then rebounded.

“The resignation of senior board members should be viewed positively,” said Abdulla Nahlawi, an analyst at Rasmala Investment Bank in Dubai. “The credibility of the current board has been jeopardized with the unfolding of the recent events.”

NMC shares lost almost half their value the first week of February on speculation the company’s main investors faced a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million of those shares as “enforcement of security,” NMC said.

NMC operates the largest medical network in the United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. The shares started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.

Shetty, 77, was born in India and founded NMC in the 1970s after moving to Abu Dhabi. His spokesman said a legal review of the situation is ongoing and declined further comment.

Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq also stepped down because they were appointees of Shetty and Butti, NMC said, adding that they had no knowledge of the share transfers.

Questions remain over the role of Shetty’s family at the company. His wife and son-in-law both hold roles in senior management.

Almost 10 per cent of NMC’s freely traded shares are shorted, according to Markit Securities data. In mid-December about a third of them were.

Last week GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for NMC. Under U.K. takeover rules, it has until March 9 to make a bid.

NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review. The review is due to be completed before the company issues its financial results in March, the person said.

NMC said Mark Tompkins will continue as the company’s sole chairman.

May 28: The Karnataka State Election Commission on Thursday announced postponement of gram panchayat polls citing the COVID-19 pandemic.

Out of 6,025 gram panchayats, the tenure of 5,800 gram panchayats will end by June-August 2020.

"After examining the feasibility of conducting general elections to gram panchayats, the State Election Commission, considering the current situation as exceptional circumstance, has decided to temporarily postpone the general elections to the gram panchayats," the SEC said in a release.

It said after examining the situation in the days to come, the decision will be taken on holding the general elections to the gram panchayats.

The CEC also states that report by Deputy Commissioners of districts on holding the elections was verified and it has been found that district administrations are involved in COVID-19 related work and there will be shortage of staff and transport facilities for the elections. Besides, there would be a problem in maintaining law and order.

Last week through a letter to Deputy Commissioners of districts, the commission had sought opinion on holding panchayat polls amid the COVID-19 crisis. It had also pointed out that electoral roll needs to be prepared and reservations had to be allocated as per the new amendments.

Stating that the state election commission's decision to postpone gram panchayat elections was against the provisions of the Karnataka Panchayat Raj Act 1993, the Leader of Opposition Siddaramaiah said the Congress will question this "undemocratic act" in the court of law.

He accused the commission of playing to the BJP's tune and said the congress will protest the decision at gram panchayat level.

Opposition parties in the state, especially congress, have been demanding elections.

The government was in favour of postponement of polls and wants to have administrative committees to govern the panchayats, until the polls are held, according to government sources.

The Congress, raising apprehension about administrative committees, has accused the government of conspiring to have ruling BJP workers as its members.

A congress delegation had last week submitted a petition to State Election Commissioner B Basavaraju and urged the Commission to hold elections.

The congress had even suggested continuation of sitting panchayat members until the polls are held, instead of appointing administrative committees.

Mar 11: Two activists of Sangh Parivar have been arrested by the police in Tamil Nadu’s Coimbatore for hurling a petrol bomb at a mosque in Ganapathy on March 5.

The miscreants had hurled petrol bombs at the front gate of Hidayathul Sunnath Jamath Mosque at Vedhambal Nagar near Ganapathy in Coimbatore around 1 am on March 5. Since the bomb did not explode, nobody was injured in the incident.

Following a complaint from the Secretary of the Jama’ath, the police had formed three separate teams to nab the miscreants.

Based on tip-offs, the police detained BJP member Pandi (41) and VHP member Akhil (23), both from Rathnapuri in Coimbatore for inquiry.  The duo has also been remanded to judicial custody.

According to a statement by the Coimbatore police, the accused told the police that they hurled petrol bomb at the mosque to protest against the attack against Anand, a Hindu Munnani functionary a few days ago. The accused also reportedly told the police that they were planning to create more chaos.

Madukkarai Anand, the District Secretary of Hindu Munnani was attacked on March 4, while he was returning home after participating in a pro-CAA dharna organised by the BJP and allied parties in Gandhipuram.

He was allegedly followed by men on two motorbikes, who attacked him with rods. Anand suffered head injuries in the attack and was admitted to a hospital. The Podanur police registered a case for attempt to murder based on a complaint and had also formed special teams to nab the accused. However, no one has been apprehended in that case till now.

Based on the statements given by the accused, the police arrested the two men, seized the two-wheeler they used, two cell phones and the things they used to manufacture the petrol bomb.