Muslim literary awards conferred; Teesta slams saffron forces

Bengaluru, May 19: Chief Minister B S Yediyurappa-led Karnataka government has recommended the withdrawal of 46 cases against leaders belonging to Sangh Parivar who had apparently involved in violence during the birth anniversary celebration of Tipu Sultan in the state. 

These cases – ranging from very serious forms of assaults on Muslims to unlawful assembly – were registered across Karnataka between 2014 and 2018.

Among the cases recommended to be withdrawn include those registered against senior state BJP leader Sanjay Patil, VHP leader Swaroop Kalkundri, and several district level Bajrang Dal activists. 

The government recommended withdrawal of these cases under Section 321 of the Code of Criminal Procedure on March 5. 

The recommendations, however, have been opposed by three crucial law enforcement departments – Director General and Inspector General of Police (DG & IGP), Director-Department of prosecution and Government litigation and Law department. 

While the DG & IGP has opined that these cases “cannot be withdrawn”, both the department of prosecution and law have observed that these are “not a fit case to withdraw”.

Feb 19: Bavaguthu Raghuram Shetty was once a typical billionaire with a taste for the high-life.

He splurged on a private jet, vintage cars and two entire floors of the Burj Khalifa, the world’s tallest skyscraper. His website shows him hobnobbing with politicians, Bill Gates and Bollywood royalty.

“The thrill of speed and freedom makes me love cars,” Shetty, 77, told local reporters last year.

Shetty had more than enough money -- at least on paper -- to afford such a lifestyle from companies he helped found, including hospital operator NMC Health Plc and financial services firm Finablr Plc. On Dec. 10, his stakes in the public companies were valued at $2.4 billion, making up the bulk of a fortune spanning education, hospitality and one of the world’s oldest tea companies.

Then, a week later, Carson Block came along.

Block’s investment firm, Muddy Waters, issued a report criticizing NMC’s accounts and disclosing a short position. Since then, Muddy Waters’s scrutiny has snowballed into a troubling scenario for Shetty that sheds light on his complex share arrangements and casts doubts about his net worth. His holdings in Finablr and NMC are worth $885 million, but Shetty’s fortune may now be just a fraction of that, depending on the size of his borrowings.

Filings this month show that Shetty pledged a quarter of his NMC stake against loans with First Abu Dhabi Bank and Zurich-based Falcon Private Bank. Two other shareholders may own half of his reported stake. Another lender -- Al Salam Bank Bahrain -- has already sold some of those shares to enforce security over a loan for Shetty, and NMC said Tuesday that First Abu Dhabi Bank sold another chunk earlier this month.

The situation “seems to have gone beyond some of the issues that Muddy Waters focused on initially,“ said Gavin Launder, a fund manager at Legal & General Investment Management, who owned shares in NMC until October. “The increased scrutiny has unearthed other issues.”

Law firm Herbert Smith Freehills has launched a review of Shetty’s holdings at his request, a spokesperson for the Indian-born businessman said, declining to comment further until the analysis is completed. Shetty resigned Sunday as NMC’s chairman.

In its Dec. 17 report on NMC, Muddy Waters hinted at potential overpayment for assets, inflated cash balances and understated debt. Shares of the United Arab Emirates’ biggest private health-care provider have since plunged 67%, and the firm is now the focus of takeover speculation. The sell-off also spread to Finablr, whose stock has tumbled 64% in that span.

NMC has disputed Muddy Waters’s claims, and the company hired former FBI Director Louis Freeh to conduct an independent review of the short seller’s allegations. Meanwhile, local regulators “are making inquiries with the relevant parties,” a spokesperson for the U.K.’s Financial Conduct Authority said.

Shetty is hardly the only ultra-wealthy person to leverage his assets. Elon Musk has used his shares in Tesla Inc. to obtain personal loans, while Oracle Corp. Chairman Larry Ellison has put up millions of the company’s shares to fund a lavish lifestyle that includes trophy properties, America’s Cup teams and the Indian Wells tennis facility in California.

But such deals can also sour, as demonstrated by Shetty’s lenders selling shares his investment firm pledged. He and his advisers are investigating details of the sales as part of their legal review, according to filings.

To complicate matters, Shetty pledged another batch of NMC stock in 2018 as part of a so-called equity collar arrangement with Goldman Sachs Group Inc. that uses options to limit the impact from share moves. Last month, he also pledged most of his stake in Finablr to refinance a loan from the company’s takeover of foreign-exchange firm Travelex for about $1.2 billion.

BRS Ventures Investment, the UAE-based holding company for most of Shetty’s assets, doesn’t report consolidated financials, preventing a complete analysis of his net worth. His other assets include a catering company, a waste-management firm and pharmaceutical business Neopharma, which four months ago was in the early stages of planning for an initial public offering.

Block, 43, earned his reputation as a short seller a decade ago through targeting U.S.-listed Chinese companies that he claimed were frauds. More recently, his San Francisco-based firm focused on British litigation-finance firm Burford Capital Ltd. and Japanese biotech stock PeptiDream Inc. Short sellers seek to benefit from a decline in a company’s share price.

Shetty founded NMC in 1975 after moving to Abu Dhabi from his native India. He created Finablr two years ago to consolidate his financial brands before listing it on the London Stock Exchange in 2019.

Block said he didn’t anticipate NMC’s shareholding drama.

“I wouldn’t have been able to predict that we’d get these bizarre disclosures about unclear share ownership coming out of the company,” he said in a Feb. 13 phone interview. “This has been obviously a more dramatic unraveling than we usually see.”

Shivamogga/Hubballi, Feb 10: Chief minister BS Yediyurappa on Sunday reiterated portfolios for all new ministers will be distributed on Monday and the exercise was not completed sooner only because of weekend holidays.

“I had completed all the formalities on the portfolio allocation,” Yediyurappa said, appearing to rubbish rumours that the delay was caused due to a tussle over portfolios. “However, considering it was a weekend, I decided to postpone handing them out. On Monday all portfolios will be announced.”

The CM also promised to induct loyalists into his council of ministers, admitting Umesh Katti, Hukkeri legislator, should not have been left out. Speaking in Shivamogga earlier in the day, Yediyurappa said Katti was scheduled to take oath last week along with the 10 defectors, but the decision was scrapped at the last minute due to “unavoidable reasons”. “But I have discussed the issue with Katti. Considering he is from North Karnataka and that we have worked together for many years, he will be included in the cabinet soon,” Yediyurappa said.

When questioned on more prominent legislators from his home district missing out — especially Thirthalli Arag Jnanendra — he said a “different responsibility” has been given to him and has already explained why he could not be inducted.

Yediyurappa refused to react to comments by former chief ministers Siddaramaiah and HD Kumaraswamy on government’s survival, saying he would rather concentrate on the state’s development. “It is common for the opposition to criticize the government, but I’m busy preparing for the budget, which will be presented on March 5. I am concentrating on my work,” he said.

In Davangere, Yediyurappa said he is committed to increasing internal reservation for the Valmiki community under the ST quota from 3% to 7.5%, apart from considering a separate department for the community to address their issues. Speaking at a Valimik community event, Yediyurappa said Justice Nagamohan Das has been asked to submit his report at the earliest to bring in reservation.

In Mysuru, chief minister Yediyurappa’s son and BJP Yuva Morcha general secretary BY Vijayendra on Sunday said the district will get representation in his father’s cabinet soon, pointing to the six existing vacancies. He said former minister AH Vishwanath will be made a minister as Yediyurappa is known for delivering on his promises. Speaking to reporters, he said his father has expanded his council of ministers, ensuring there were no complaints and he will include more legislators given that there are six more vacancies.