TEAM HERALD
PANJIM: Under invoicing is also an illegality of which Timblo Pvt Ltd Managing Director Radha Timblo has been accused of in the past. Today she has also been named as having money stashed abroad. However, she is not alone in this with the Justice M B Shah Commission reports devoting a separate chapter to this offence. Justice Shah, who now heads the central government’s Special Investigating Team (SIT) probing black money, had named the mining firm of illegal mining practices, and recommended an investigation by central investigating agencies under the Foreign Exchange Management Act (FEMA) and Money Laundering Act.
Timblo Pvt Ltd was also indicted by Supreme Court’s appointed Central Empowered Committee (CEC) in their exhaustive report in 2012 for illegally operating a mining lease with questionable power of attorney executed by a Pakistani national.
Justice Shah Commission in its third report, speaking about the under invoicing, evasion of taxes and duties, had clearly named Timblo Pvt Ltd and V S Dempo & Co Pvt Ltd for carrying out under invoicing of exports. A total 240 consignments of lumps and fines were found under invoiced during 2006-07 to 2010-11.
“It appears that while exporting there is large scale under invoicing indulged in by the companies. It was noted that while exporting ore different prices are quoted by the same company to different importers on the same date and for the same grade Fe. The companies are having their own fronts or associated companies registered outside India. They import the ore from their mother companies at low rate,” the commission had said in its report that pegged iron ore mining scam at Rs 2,700 crore.
Out of 240 export consignments (2006-07 to 200910), 13 export consignments (lumps and fines) of Timblo Pvt Ltd were noted to have allegedly under invoiced by Rs.71.71 crore.
“Only under invoicing is taken into consideration. The evasion of other taxes and duties are not calculated. If they are also taken into account the evasion amount will be very high,” the commission had said.
Meanwhile, CEC in its report to the Supreme Court, had said “It is seen that the mining lease was granted in the name of an individual who had migrated to Pakistan and died there. He was never involved in operating the mining lease or seeking its renewal.” According to the CEC the lease has been allowed to be operated illegally by a partnership firm comprising Timblo Pvt Ltd, Radha S Timblo and others. It also said that the mining lease has been renewed by the Goa government in favour of the partnership firm owned and controlled by Timblo family by disregarding rules and in blatant violation of Rule 37 of Mineral Concession Rules, 1960.
The CEC pointed out that the renewal of mining lease was allowed on the basis of an unregistered power of attorney, stated to have been executed by the lessee while staying in Pakistan and whose genuineness and validity was highly dubious and doubtful.
The CEC said the original lease was granted to one Badrudin Bavani and the first renewal of the lease was allowed in the name of a firm Badrudin Hussain Bhai Mavani, who neither has any financial stake nor any control in the said firm controlled by the Timblo family.
“The ownership and control of the said lease by the Timblo family (through the partnership firm) was justified by them by producing before the state government another power of attorney dated November 5, 1997 stated to have been executed by Mavani in favour of Radha S Timblo.
In the said power of attorney, it is mentioned that Mavani is staying in Karachi, Pakistan. This document is not registered, nor notarized or signed in presence of witnesses,” CEC said.
“The state of Goa was fully aware of the serious illegalities involved. However, instead of taking punitive action in accordance with the law, it disregarded the serious illegalities and chose to grant renewal of the mining lease in favour of the partnership firm owned and under control of Timblo family, which should not have been permitted,” the CEC opined.
Donations by TPL to
Congress and BJP
An analysis of the donations made by individuals and corporates to the national political parties between FY 2004-05 and 2011-12 shows that Timblo Pvt Ltd had donated nine times to BJP totalling Rs 1.18 crore and thrice to Congress, with total donations adding up to Rs 65 lakh in seven years.
What CEC said
CEC in its report to Supreme Court, had pointed out that the Timblo Pvt Ltd mining lease was granted in the name of an individual, who had migrated to Pakistan and died there. The lease was operated by a partnership firm comprising Timblo Pvt Ltd, Radha S Timblo and others. CEC says that the mining lease has been renewed by the Goa government in favour of the partnership firm owned and controlled by Timblo family by disregarding and in blatant violation of Rule 37 of Mineral Concession Rules, 1960.
The renewal of mining lease was allowed on the basis of an unregistered power of attorney, stated to have been executed by the lessee while staying in Pakistan and whose genuineness and validity was highly dubious and doubtful.
The original lease was granted to one Badrudin Bavani and the first renewal of the lease was allowed in the name of a firm ‘Badrudin Hussain Bhai Mavani’, who neither has any financial stake nor any control in the said firm controlled by the Timblo family.
What Shah
Commission said
Shah Commission alleged that the mining firm was following illegal mining practices and recommended probe by central agencies under the Foreign Exchange Management Act (FEMA) and Money Laundering Act. Mining firms were accused of under invoicing an amount of Rs 71.71 crore in 2006-07 to 2009-10.
Many with illegal foreign a/cs: CM
PANJIM: Chief Minister Manohar Parrikar on Monday speculated that there could be more names from Goa to add to the list of those who have illegally stashed money in foreign bank accounts, not just in Swiss Banks. He said that they all need to be investigated under Foreign Exchange Management Act (FEMA).
“Why to look at only one particular class (mine owners)? There are many Goans who have illegal bank accounts in foreign countries. This include politicians, mine owners and other business classes too,” Parrikar told Herald.
Parrikar, who is state mines minister, wants the central government to initiate action against the guilty under FEMA and recover all black money. “I cannot comment on the Radha Timblo case in detail as I have not gone through the affidavit as yet. I am not aware how much money is involved or what are the charges,” he said. The CM said that there is nothing illegal in having money in foreign banks provided the assets are declared.
Ban TPL from mining: Claude
PANJIM: Goa Foundation, on Monday, demanded that Radha S Timblo, the owner of leading mining firm Timblo Pvt Ltd, should be black-listed and not allowed to conduct mining business.
“As far as I know the consequence of finding the mine owners name in the list of persons who have parked black money abroad should be that she should be black listed from conducting mining operations,” Goa Foundation’s Director Dr Claude Alvares said.
“If a person is nailed in the Supreme Court for parking money abroad and is now bound to face prosecution, I don’t know under which law or Constitution she would be allowed to mine again in Goa,” Alvares said adding, “Several mine owners have opened foreign bank accounts illegally… This clearly indicated that these are illegal bank accounts having black money generated from illegal mining.”
Why 3 names only?: Cong
PANJIM: The Congress party has accused the central and state governments of colluding and “selective blackmailing” a few, alleging that this action of naming three in the blackmoney affidavit to the apex court was nothing but an eyewash.
The Goa Pradesh Congress Committee has challenged the Centre to disclose in one instance all 700 names of those who had illegally stashed money abroad. “We want the Centre to come out with the entire list and chargesheet it. Why is government coming out with a selective list? This is nothing but blackmail,” accused GPCC spokesperson Sunil Kawathankar.
GMOEA mum
TEAM HERALD
PANJIM: The Goa Mineral Ore Exporters Association (GMOEA), refused to comment on the issue of money stashed in Swiss Banks, with president Shivanand Salgaocar, saying “it is her (Radha’s) personal issue and it won’t be wise for the mining body to com
