Drop Mahadevappa from Cabinet: Eshwarappa

Bengaluru, Mar 18: BJP MLC Lahar Singh Siroya on Wednesday wrote a letter to Karnataka Chief Minister B S Yeddyurappa, urging him to allow half-an-hour daily discussion in the State Assembly and Council to take stock and review preparation of the government to contain the spread of coronavirus.

"Since the entire world including India is facing an emergency-like situation, it is appropriate for lawmakers to discuss the matter in the legislature. I would like to request you to allow the matter to be discussed every day in the upper house," said Siroya in his letter to the Chief Minister.

He said discussion and suggestions on the issue can help the government to improve the surveillance activities.

He said members of the Assembly can bring realistic information from their districts and present the same before the House.

Stressing that Bengaluru is a global hub of software and electronic industries, Siroya said: "We need to step up surveillance on the improvement of the international community. So, we have to discuss in detail and devise a robust strategy to contain the spread of the disease."

He asserted there is a possibility of people using social media to mislead public.

"lf the government discusses and debates the issue besides making announcements if any, there will be no scope for social media to mislead the public. Media is doing a good job in educating people. So, I would like to request you to involve the media and select NGOs to sensitise people and bring in the preventive mechanism of self-quarantine more effectively," he said.

Two more people have tested positive for COVID-19 in Karnataka on Wednesday, taking the tally of infected persons in the state to 13, Health Minister B Sriramulu said.

A total of 147 positive cases of coronavirus have been reported in India so far, as per the Union Ministry of Health and Family Welfare. The deadly virus has claimed three lives in the country, the first one was reported from Karnataka.

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.”

Bengaluru, May 3: Erection of barricades and drawing up of boxes or circles aimed at maintaining social distancing were seen in front of liquor shops in different parts of Karnataka on Sunday, a day ahead of their reopening after a gap of over 40-days, due to the lockdown.

Karnataka Excise Commissioner on Saturday had ordered that only CL-2 (retail shops) and CL-11C (state-run retail shops like Mysore Sales International Limited) would open from May 4.

It had permitted liquor sale liquor between 9 am and 7 pm only in areas that are outside COVID-19 containment zones.

Reports of barricades being erected to ensure that people stand in line and drawing of boxes or circles in front of shops to maintain social distancing in front of retail and MSIL shops have emerged from across the state, including the state capital.

Also reports about shop keepers doing special poojas outside liquor shops in Kolar and some even illuminating their outlets with lights from outside have surfaced from other parts of the state.

Meanwhile, officials were engaged in checking stocks ahead of the shops opening on Monday morning.

"We are making all preparations to ensure that government rules are followed. We also seek the cooperation of the people and police," the manager of a shop said.

Another said there may be a rush initially, after which things may get back to normal.

"We expect things to go on smoothly," he added.

Calling for number of customers to be limited to five at a time while ensuring that they maintain social distancing of not less than six feet distance, the order states that customers and the staff will have to wear masks and sanitizers should be used at the shops.

Only stand alone CL-2 and CL-11C shops are allowed to commence liquor sale and not those at malls and super markets, it said.

Officials in Bengaluru said liquor sale is prohibited in 26 containment zones in the city, while in other places rules that have been prescribed need to be followed.

In case of any violation, strict action would be taken, including imposing of penalty, they said.

There was pressure on the government to kick start economic activities, including allowing sale of liquor, to boost the state's finances as excise is the key area which generates revenue.

State Excise Minister H Nagesh had recently pegged the losses at Rs 60 crore per day because of closure of liquor shops, due to the lockdown.