December 21, 2004

Funds donated by hindu samaj are 'managed' in Christist territory

How funds donated by hindu samaj are 'managed' in Christist territory: Andhra Pradesh

This is the tip of an iceberg. A scandal in the making. Deposits parked in private banks have a way of vanishing and as the Finance Minister P. Chidambaram has just said, Govt. doesn't guarantee such deposits. See what happened with Global Trust Bank. It is no mere coincidence that the good friend of Subbarami Reddy happens to be Chief Minister of Andhra Pradesh who has been and continues to be a proselytizer. The ongoing conversion rampage in Andhra Pradesh has to be seen to be believed. It is warfare in the name of religion, since conversion is violence. The next in line after Kanchi Acharya who is to be 'fixed' is Chinna Jeer Swami. And, Surjeet is waiting in the margins to tax the income of religious institutions (read: hindu temples and mathams).


How TTD funds are parked in private banks

Tuesday December 21 2004 11:25 IST

TIRUPATI: Determination is undercurrent in the way TTD chairman T Subbarami Reddy is going about to divert Devasthanams funds to private banks as deposits. The question is how does he accomplish his wish.

The modus operandi that appears to have been evolved is: He annoints himself as chairman of the Investments Committee of the TTD which also has five other members. It is significant to note that never in the past the chairman of the trust board himself headed any sub-panel, more particularly the investments committee.

In the instance under question, the panel headed by Reddy drafts an "Investment Policy" for the temple to be placed before the Board for approval when its meets shortly. And Reddy, as chairman of the Board, would deliberate on the recommendations his own committee made -indeed an incongruous situation the board may have to cope with.

Records would show that only a financial expert who is other than the chairman and executive officer of the Devasthanam presided over such committees. In fact, the immediately past Investment Committee did not formally have a chairman at all. Instead one of the specialists in finance matters who happened to be a member of the committee chaired the meetings.

The latest Investment Committee with Subbarami Reddy as chairman drafted a 36-page report which purportedly builds up a strong argument seeking to bestow benefits on the private sector banks.

The panel says that an important method of spreading the risk to impose "exposure norms" is of two ways -- a) exposure norm vis-a-vis bank (s) strengths and b) exposure norm on total portfolio.

In order to minimise the risk, the committee suggested that TTD's fixed deposits and other investments in a bank may not exceed 10 per cent of the total net worth of that bank. Secondly, the total exposure to an individual bank may be limited to a maximum of 10 per cent of the total investment portfolio of the TTD.

The import of this move is that it would straightaway put a stop to the TTD investing its deposits any further in the public sector banks such as Andhra Bank, Indian Bank and Indian Overseas Bank and State Bank of Hyderabad on the ground that they have already crossed the exposure norm.

On the other hand, the document suggests that the TTD should consider a few private sector banks like the ICICI bank, UTI bank and HDFC Bank for the purpose. "A few private sector banks like ICICI bank, UTI bank and HDFC bank are doing well. TTD may selectively consider investments
in private sector banks provided interest rates offered are very attractive."

The other investment avenue proposed by the panel is "bonds floated by financial institutions such as IDBI and ICICI which now became banks along with HDFC. These are financially sound institutions....."

The third category, the panel advocates for investments is "AAA" rated bonds/debentures of institutions from secondary market.

Apart from Subbarami Reddy as chairman, the investments committee has well-known industrialist T. Srinivasan, who is also a Board member, former SBI chairman S.R. Iyer, IDBI bank director K. Narasimha Murthy and two chartered accountants - S.S.R. Koteswara Rao and Sairam Mocherla.

(to be continued)

No comments: