Indian-American named judge in California

 IANS :Sep 7,2013

A leading Indian American lawyer, Sunil R. Kulkarni, has become the first South Asian American state judge in Northern California with his appointment to Santa Clara County Superior Court.

Palo Alto, California, resident Kulkarni, 41 who since 2011 has served as a senior counsel in the litigation group at the University of California, was named to the new post by California governor, Jerry Brown, last week local ethnic newspaper India-West reported.

Indian American Paul Singh Grewal in 2010 was appointed a magistrate judge, a federal post, in US District Court for the Northern District of California, according to the South Asian Bar Association of Northern California.

Born in Los Angeles, Kulkarni grew up in King City, California, in southern Monterey County. He has a BS from University of California-Berkeley and a law degree from the University of California’s Hastings College of the Law.

The Indian American attorney was a law clerk for Judge Oliver W. Wagner in the US District Court for the Eastern District of California from 1996-97 and held various positions at Morrison and Foerster LLP from 1998-2011, including partner and associate.

There has been a flurry of recent appointments and nominations of South Asians to the judiciary in California.

They include Rupa S. Goswami, who was appointed by Brown to Los Angeles County Superior Court; Alka Sagar, who was named a federal magistrate judge for the Central District of California; and Vince Girdhari Chhabria, who was nominated by President Barack Obama to the US District Court for Northern California.

According to the South Asian Bar Association of Southern California, Sagar became the first South Asian woman to serve as a federal judge in the Central District and the first South Asian woman federal judge west of the Mississippi.

Courts will protect honest officers’ rights: SC

 IANS:7 thSep 2013

There is no reason to fear that the higher courts will not protect the rights of honest officers, the Supreme Court said on Thursday when the government insisted on retaining the power to approve graft probes against public servants.

The government claimed that its nod should precede corruption case investigations against officers of the rank of joint secretary and above to safeguard their interests.

The apex court bench of justice RM Lodha, justice Madan B Lokur and justice Kurian Joseph said, “The Supreme Court and high courts being the constitutional courts are the protector and guardians of the rights of the people, then why will they not protect the rights of the honest officer.”

The court said this in the course of the hearing of the government response on whether its prior sanction was an absolute must for investigations against bureaucrats and whether the power gets vested in the Central Vigilance Commission after giving it the power to supervise the CBI’s investigation.

The issue surfaced in the course of the hearing on public interest litigations seeking cancellation of coal blocks that were irregularly allocated.

The court made it clear that its hearing was not limited to any particular case but was only concerned with the “ambit and scope” of Section 6A of Delhi Special Police Establishment Act, a law that controls the legal powers of the CBI.

At the outset of the hearing, the court brushed aside a plea by petitioner advocate Manohar Lal Sharma seeking the investigation into the role of all the former coal ministers and Prime Minister Manmohan Singh during the period when he was looking after the ministry.

The court was told that the CBI has already filed 13 first information reports and has just named those who were allocated coal blocks and neither the officials nor the ministers involved in the alleged wrongdoings.

The judges said the investigations were still in preliminary stages and it would not digress from the issue of examining the ambit and scope of Section 6A of DSPE Act, which they were hearing Thursday.

Under Section 6A of the act, it is mandatory for the CBI to seek prior sanction of the government for investigating an officer of the joint secretary rank or above for alleged offences under the Prevention of Corruption Act.

Attorney General GE Vahanvati told the court that the court directed or court monitored investigation by the CBI did not stand on a different footing from normal investigation when it came to following the procedure of seeking advance permission of the government.

The government asserted that the apex court could not “waive off or negate” the express statutory provision as Section 6A of the DSPE Act was in the nature of “procedure established by law”.

Vahanvati told the court that it (court) could not say by way of clarification that prior approval of the government was not required as the powers of supervision of investigation by the CBI have been shifted to the Central Vigilance Commission.

He told the court that as and when the investigating agency would approach the government for sanction under Section 6A of the DPSE Act, the government would pass a reasoned order.

In the event of the government rejecting the investigating agency’s request for sanction, the issue could be brought before the court to determine its correctness, the attorney general told the court.

“The view why sanction has been denied will be before the court. Both points of view (that of the government and the CBI) will be there for the court to consider. The decision of the government will not be final. The view of the court will be final,” the attorney general told the court.

“When the court is balancing the interest, then the government should have the right to decide on sanction and same can be done in four weeks,” Vahanvati told the court.

No money or flying permit for Kingfisher but Mallya's 'never say die' spirit intact

FP :Sindhu Bhattacharya Sep 3, 2013


New Delhi: The never say die spirit of Vijay Mallya is admirable. The chairman of Kingfisher Airlines has no flying permit, crores in debt from lenders with myriad legal cases, unpaid employee dues and no visible plan in sight to bring in fresh capital to restart the airline. But he still dreams of restarting the airline. In the annual report for 2012-13, which he has sent to shareholders ahead of the proposed AGM of Kingfisher on 24 September, Mallya has said 

Kingfisher remains in dialogue with “several investors and believes that there is a rationale for investment for various strategic and non-strategic investors. As on the date of this report, your company is engaged in discussions with one such potential investor.” 

Any guesses which investor is now willing to take on a dead airline, faulty planes, absent workforce and insurmountable debt? 

Under the heading ‘Management Discussion and Analysis’ Mallya has referred to several global full service airlines keenly watching the Indian market and financial investors in the Indian aviation industry looking for an exit.

 It is interesting to note that late last year, when news was trickling in about Abu Dhabi based Etihad Airways being in talks with India’s Jet Airways for an equity partnership, Kingfisher had let it be known that Etihad was conducting its due diligence. Vijay Mallya in this file photo. Reuters Though this was never officially confirmed, Kingfisher managed to raise everyone’s hopes on a possible equity infusion by Etihad, which eventually did not happen. So Mallya’s assertion in the annual report again about ongoing discussions with one potential investor are certainly curious. 

Mallya has devoted quite some time in detailing out why a potential investor should come forward. Among the reasons he has put forth include Kingfisher having enough qualified staff, at least 12 aircraft premium slots and a lapsed flying permit which can be renewed.

 Here’s what all he has said: 
1) Will give any investor a foothold in one of the fastest growing aviation markets in the world, that is India. 
2) Growing importance of aviation in policy making, such as opening up of Indian aviation industry to foreign airline investments.
 3) New airports and other aviation infrastructure coming up. 
4) Kingfisher’s promoters are willing to continue support for the airline’s revival. 
5) Valuation of Kingfisher is “very attractive” at the moment. 
6) Brand Kingfisher, where a recent brand valuation conducted by Grant Thornton put the brand value at $550 million once the airline business becomes operational. 
7) Scheduled Air Operator’s Permit (SOP) which can be renewed anytime within two years by capitalising the airline in line with the revival plan submitted to DGCA.
 8) Kingfisher has 12 aircraft and is “confident of” acquiring additional aircraft  during the ramp up. 
9) Senior and mid level managers and sufficient number of pilots, engineers, dispatchers still on Kingfisher’s rolls to operate up to 20 aircraft. Additional staff can be hired as the airline business ramps up. 
10) Ground handling equipment and aircraft spares to support the fleet.
 11) Access to most of the premium slots besides curbside and ramp space at various airports. 

Mallya has also referred to the fact that Kingfisher has already submitted a two phase revival plan to regulator DGCA. Phase one involved restarting the airline operations with a limited fleet of 7 aircraft (5 Airbus + 2 ATRs), gradually increasing to 21 aircraft (10 Airbus + 11 ATRs) in a period of 3-4 months. Kingfisher’s parent UB Group offered to organise funding of approximately Rs 650 crore to implement this phase. The second phase envisaged bringing a new investor with fresh capital. This plan would address the issues of debt restructuring, servicing, and repayment. 

The UB Group agreed to organise financing for a limited restart. Mallya says in the annual report that “While the authorities remain supportive of your company’s restart, these authorities are awaiting recapitalisation of your company for granting the necessary permissions for renewal of the SOP and restart of operations.” 

So in effect, unless Mallya succeeds in getting funds, none of his plans can materialise. Meanwhile, Mallya also said in the annual report that Kingfisher has filed a $234 million lawsuit for damages from International Aero Engines AG citing engine defects. The lawsuit citing deficiency in IAE’s V2500 A5 engine was filed in a court in Bangalore. 

Engine problems and difficult operating environment were cited by the carrier as reasons for Kingfisher’s financial stress. The airline grounded its fleet in October after employees walked out over delayed salaries. 

Thereafter, DGCA suspended the airline’s permit because of service disruptions and the permit lapsed on 31 December last year. Kingfisher’s lessors have repossessed aircraft after payment defaults and the Airports Authority of India sued the airline because it failed to pay Rs 300 crore of airport fees
.

Happy Janmashtami

Happy Janmashtami

CBI starts inquiry against big loan defaulters

Press Trust of India  |  New Delhi  August 21, 2013 Last Updated at 16:07 IST

'A bulk of NPA is from top 30 accounts which is learnt to be running into thousands of crores. CBI has already initiated inquiry into some of the big defaulter accounts,' Sinha said


CBI has initiated an inquiry into cases of defaulters of big loans from public sector banks, its chief Ranjit Sinha said today while emphasising that bulk of non-performing assets were connected to 30 defaulter accounts.

'A bulk of NPA is from top 30 accounts which is learnt to be running into thousands of crores. CBI has already initiated inquiry into some of the big defaulter accounts,' Sinha said.

He did not reveal the specifics of the probe as it may derail the ongoing inquiry by the agency.

Speaking at the fifth annual conference of chief vigilance officers of Public Sector Banks and Financial Institutions and Officers of CBI, Sinha cited number of issues which adversely affect agency's efforts to track and recover these assets.

Highlighting issues which hamper CBI investigation into bank frauds, he said banks are often reluctant to declare bad accounts as fraud despite there being clear manifestations. The CBI Chief said the banks need to realise that delay in reporting of frauds adversely affect tracking and recovery of proceeds of crimes as the initiative is lost.

Sinha said the banks are often reluctant to fix accountability of their staff, resulting in difference of opinion between them and the agency regarding the role of public servants.

'In my view there should be no reason for denial of sanction for prosecution wherever malafide acts by delinquent officials caused huge losses to the banks,' he said.

Sinha said bank frauds involving amount above Rs 50 crore has grown almost 10 times in two years.

'Large value frauds involving amount of Rs 50 crore and above have also increased more than 10 folds from three cases in 2009-10 involving an amount of Rs 404.13 crore to 45 cases involving Rs 5334.75 crore in 2013,' he said.

Litigation has gone beyond reach of poor man: Supreme Court

PTI : NEW DELHI, AUG 25 2013, 12:23 IST

Fighting legal battle in courts has become so expensive that it has gone beyond the reach of a poor man, the Supreme Court has said while expressing concern over the legal profession getting commercialised.

Virtually holding a mirror to itself, the apex court said that judicial proceeding is so slow that people in the country are convinced that a case would not finish in their lifetime.

"In the present era, the legal profession, once known as a noble profession, has been converted into a commercial undertaking. Litigation has become so expensive that it has gone beyond the reach and means of a poor man.

"For a long time, the people of the nation have been convinced that a case would not culminate during the life time of the litigant and is beyond the ability of astrologer to anticipate his fate," a bench of justices B S Chauhan and S A Bobde said.

Observing that lawyers are equal partners with judges in the administration of justice, the apex court said, "Advocates cannot behave with doubtful scruples or strive to thrive on litigation."

It said wilful disregard for litigants' interest by a lawyer is reprehensible and unbefitting for an advocate.

"Law is no trade, briefs no merchandise. An advocate being an officer of the court has a duty to ensure smooth functioning of the court. He has to revive the person in distress and cannot exploit the helplessness of innocent litigants. A wilful and callous disregard for the interests to the client may in a proper case becharacterised as conduct unbefitting an advocate."

The apex court also frowned upon the "multi-tier operation of one lawyer hauling a client and then acting as a facilitator for some other lawyer to draw proceedings or engage another lawyer for arguing a case is definitely an unchartered and unofficial system which cannot be accepted as in essence, it tantamount to a trap for litigants which is neither ethically nor professionally a sound practice."

"Such conduct is ridiculously low from what is expected of a lawyer," it said.

The court made the observations while pulling up an advocate on record for "lending" his signature, for consideration, to a petition filed in the top court and thereafter not even once appearing in the case.

Advocates on record are those lawyers who alone are eligible to file cases in the apex court.

An advocate on record (AOR) is not a "guest artist" who lends his signature to a petition, the bench said, adding, "Such an attitude tantamount to cruelty in the most crude form towards the innocent litigant. In our humble opinion, conduct of such AOR is certainly unbecoming of an AOR."

Parliamentary panel.to scan PSB bad loans

FE:ARUN S : NEW DELHI, AUG 27 2013, 01:33 IST

The rising bad loans of public sector banks (PSBs) and the deterioration in their asset quality have come under the scanner of a parliamentary panel.

The Parliamentary Consultative Committee on Finance will question the government this week on the increase in non-performing assets (NPAs) of PSBs and the measures taken to contain them, sources told FE.

The finance ministry is looking into the books of PSBs to see if there are any cases of “aggressive or reckless lending” in the past or an unexplained jump in the credit growth that has resulted in a rise in NPAs, sources said.

“We had an isolated incident where there was a huge rise in credit growth, but later it was found that those were all financially sound accounts. However, we are monitoring the lending practices of banks now from the NPA point of view,” a senior finance ministry official told FE.

A member of the Parliamentary committee, on condition of anonymity, said the panel considers the rising NPAs a serious problem that needs to be dealt with urgently. This is even as the Central Bureau of Investigation (CBI) is looking into the top 30 major loan defaulter accounts to see if there are any wrongdoings by officials and borrowers.

Sources said the chief vigilance officers of banks could soon be told to prepare a list of cases where there are suspected malpractice in lending, loan sanctioning and disbursement. The idea is to see if anyone has committed any fraud to obtain loans by forging collateral titles, fudging numbers in balance sheets and financials of companies as well as in asset valuation, they said.

The issue of the measures taken by the government to help banks recover NPAs at the earliest was also raised on Friday in Parliament. Finance minister P Chidambaram in a written reply told Lok Sabha the government had asked PSBs to increase the pace of recovery and manage NPAs.

It was suggested to the PSBs that the write-offs of loans should not be more than the recovered amount, the minister said. He had said the PSBs were told to conduct a special drive for recovery of loss assets in addition to appointing nodal officers for recovery.

PSBs were also told to put in place an early warning system and constitute a Board-level committee to monitor the recovery. The minister also pointed to the RBI’s instructions to banks to put in place a loan recovery policy and a robust mechanism for early detection of signs of distress, including prompt restructuring in case of all viable accounts.

He also said recently enacted Enforcement of Security Interest and Recovery of Debt Laws (Amendment) Act, which came into force on January 15, had removed certain bottlenecks in the recovery of bad debts.

Gross NPAs of public sector banks had jumped to R1.79 lakh crore at the end of June quarter from R1.55 lakh crore at March 31, 2013.

“The high level of NPAs cost the banks by way of loss of interest income, besides provisioning, recovery and litigation costs,” RBI had said. The RBI annual report had said the gross NPAs of scheduled commercial banks (SCB) had risen from 2.9% in 2011-12 to 3.4% in 2012-13. In fact, the grosss NPAs of all SCBs rose from R50,000 crore in March 2007 to R1.83 lakh crore in March 2013. The net NPAs have also climbed to R88,300 crore in March 2013.

The banking industry in general has suffered due to the slowdown and delay in government clearances to various projects. SCBs also ended up with a lower profit growth of 12.8% in 2012-13 from 14.6% in the previous fiscal due to the higher provisioning.