Category: INDIA

Mumbai: The Bombay High Court dismissed a petition alleging corruption in awarding a contract to Adani Power for the supply of 6,600 MW of bundled renewable and thermal power, terming the allegations “vague and unsubstantiated.” The court imposed a cost of Rs 50,000 on the petitioner, directing payment to the Maharashtra State Legal Services Authority.

Petitioner, Shriraj Nageshwar Aepurwar, had claimed the contract violated the fundamental right to access electricity at fair rates under Article 21 of the Constitution. It was alleged that the former Chief Minister had engaged in corrupt practices while awarding the public contract.

However, the bench of Chief Justice Devendra Kumar Upadhyay and Justice Amit Borkar found no merit in the claims. The bench remarked: “Filing such a writ petition containing unsubstantiated and reckless averments runs the risk of sometimes even good causes being lost.”

The petitioner referred to the recent indictment of Gautam Adani by the United States Department of Justice, alleging that Adani orchestrated a bribery scheme to influence Indian government officials. The court rejected this argument, stating that the petitioner failed to substantiate the allegations. “The submissions cannot be accepted merely on the basis of charges filed in a US court,” the judges noted.

The court observed that the petitioner was not a participant in the tender process leading to the award of the contract to Adani Power. Further, the petitioner filed a writ petition instead of a public interest litigation (PIL), which the court deemed inappropriate. Even if treated as a PIL, the court emphasized the need for proper evidence to support such serious allegations.

The bench also pointed out that the petition was “bereft of any substantiating and supporting material” and contained “absolutely bald and vague allegations, which do not persuade us to entertain the same.”

When the petitioner argued the plea was not filed in personal interest, CJ Upadhyay orally remarked: “There’s a hidden agenda. Merely by crying scam… doesn’t impress us.”

Adani Power won the 25-year contract by quoting Rs 4.08 per unit, nearly a rupee lower than the state’s current procurement cost. Supplies are expected to begin within 48 months from the award of the letter of intent.

D Gukesh, India’s newly-crowned International Chess Federation (FIDE) World Championship title winner was felicitated at his alma mater, Velammal Nexus in Chennai on Monday.

The Indian chess grandmaster returned to India today, days after winning 2024 FIDE World Championship in Singapore and becoming the youngest-ever World Chess Champion. India’s chess prodigy, Gukesh, last week made history by defeating China’s Ding Liren in the decisive 14th game of the FIDE World Championship match in Singapore.

Earlier in the day, the World champion received a rousing welcome at the Chennai Airport. Fans turned up in numbers to welcome the youngest world chess champion at the Chennai Airport. Gukesh was surrounded by people as he made his way out of the airport.

“I am very glad to be here. I could see the support that and what it means to India. You guys are amazing. You gave me so much energy,” Gukesh told reporters after arriving at the airport. The championship, which was tied at 6.5-6.5 heading into the final game, culminated in a stellar performance by Gukesh, securing a 7.5-6.5 victory over Ding Liren.

Following his triumph, Gukesh was overwhelmed with emotions and broke down in tears. Gukesh termed the win as the “best moment of his life” in the post-match press conference.

Following the game, Liren said in the post-match press conference, “I was totally in shock when I realized I made a blunder. I will continue to play. I think I played my best tournament of the year. It could be better, but considering yesterday’s lucky survive. It is a fair result to lose in the end. I have no regrets.”

When Gukesh finally received his trophy following his triumph in a heartwarming gesture, he handed it over to his parents immediately.
At the end of game 13, the scores are level at six and a half points each, with one classical game left, as per FIDE. At this point, one move or one mistake could be the point of difference. The game lasted for 68 moves. 

Concord Enviro Systems, an environmental engineering solutions firm, on Monday said it has set a price range of Rs 665-701 per share for its initial share-sale, which will open for public subscription on December 19.

The initial share-sale is scheduled to close on December 23 and the bidding for anchor investors will open for a day on December 18, the company announced.

The proposed IPO comprises a fresh issuance of equity shares worth Rs 175 crore and an Offer For Sale (OFS) of 46.41 lakh equity shares valued at Rs 325.33 crore, at the upper end of the price band, by promoters and an investor. This aggregates the issue size to Rs 500.33 crore Those selling shares in the OFS are, promoters –Prayas Goel and Prerak Goel, promoter groups — Namrata Goel, Nidhi Goel and Pushpa Goel– and investor AF Holdings.

Proceeds from the fresh issue will be invested in Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems as well as its working capital requirement.

Additionally, funds will be invested in Rochem Separation Systems (India) Private Ltd to expand its manufacturing facilities and support activities, payment of debt, technology and growth initiatives, working capital requirements and for general corporate purposes.

At the upper end of the price band, the company’s market capitalisation has been pegged at Rs 1,450 crore.

Half of the issue has been reserved for qualified institutional buyers, 35 for retail investors and the remaining 15 per cent for non-institutional investors. Concord Enviro Systems is an integrated solutions provider for industrial waste water reuse and zero liquid discharge solutions, with an in-house position across the value chain. The company’s reach extends to diverse regions with exports to countries in North America, Latin America, Africa, the Middle East, and Southeast Asia.

Motilal Oswal Investment Advisors and Equirus Capital are the book running lead managers to the issue. The equity shares of the company are expected to be listed on December 27 on the NSE and BSE.

The Indo-Pakistani war that preceded Bangladesh’s independence in 1971, India’s support to the ‘Mukti Vahini’ (Emancipation Army) in Bangladesh, and the diplomacy that followed, is the saga of then Prime Minister Indira Gandhi’s leadership.

I heard this tale several times as a child, narrated by my father’s friend, a Bangladeshi Hindu convert who had migrated from that country before its 1971 Liberation War, whom I called ‘Abdul Chacha’: 

 “I still recall the stentorian voice of ‘Bangabandhu’ Sheikh Mujibur Rahman ringing out the strident tones of his magical, inspirational speech at the Race Course Maidan (now known as Suhrawardy Udyan), in Calcutta, on March 7, 1971, calling an entire nation to rise up and take up arms against an exploitative government in erstwhile East Pakistan, informally declaring independence for Bangladesh, proclaiming, ‘The struggle this time is a struggle for our liberty. The struggle this time is a struggle for our independence,’ calling for ‘every house to turn into a fortress’, and ending on the notes of ‘Amader keu dabaya rakhta parba na (nobody can ever pin us down to the ground)’.” 

The Genesis of the Tale of Valour 

On October 30, 2017, UNESCO added the speech to the ‘Memory of the World Register’ as a documentary heritage. It was delivered during a period of escalating tensions between East Pakistan and the powerful political and military establishment of West Pakistan. What followed in the days immediately after is now history! 

The Bangladesh Liberation War of 1971 began 18 days later when the Pakistani Army initiated ‘Operation Searchlight’ against Bengali civilians, intelligentsia, students, politicians and armed personnel and ‘Bangabandhu’ was placed under house arrest by Pakistani soldiers at the midnight of March 25 night. 

By March 1971, Mujibur-led Awami League cadres were on the streets, demonstrations were rife and strikes were the order of the day. Pakistan’s army—aided by the ‘Razakars’, considered the worst traitors in Bangladesh’s history—was openly vandalizing the country. The Hamoodur Rehman Commission gave an official count of 26,000 deaths. Lakhs of refugees fled to India seeking shelter. 

The Indo-Pakistani war that preceded Bangladesh’s independence in 1971, India’s support to the ‘Mukti Vahini’ (Emancipation Army) in Bangladesh, and the diplomacy that followed, is the saga of then Prime Minister Indira Gandhi’s leadership. She completely relied on her military chief, Field Marshal Sam Manekshaw. 

On December 16, 1971—later officially known as Bangladesh’s ‘Vijay Diwas’—just 13 days after the start of the war, General AA Khan Niazi, in-charge of the Eastern Command of the Pakistani Army, surrendered in Dhaka, handing over his service revolver to the Indian Army’s Eastern Command In-charge Lieutenant General JS Arora. 

Sheikh Hasina & the Quota System 

The quota system in Bangladesh started in 1972 and was modified several times since then. In the most recent version, the quotas covered 56% of jobs in the Bangladesh civil service. Most importantly, 30% of government jobs were set aside for the children and grandchildren of freedom-fighters of the 1971 Liberation War. 

The Bangladesh Supreme Court, on July 21, 2024, scrapped most of the quotas on government jobs that had sparked nationwide protests by students which killed at least 114 people earlier this year. Dismissing a lower court order, the Supreme Court’s Appellate Division directed that 93% of government jobs in the country should be open to candidates on merit. The apex court’s ruling reduced the number of reserved jobs from 56% to 7%. However, it did not fully satisfy the protesters’ demands. The court decided to reserve 5% of government jobs for the children of “freedom fighters” from the 1971 War, down from 30%. 

Many young graduates were upset about the “freedom-fighter” category, believing it favoured supporters of Hasina’s ruling party, the Awami League. Critics accused Hasina’s government of influencing the judiciary, while she hinted the court’s ruling would align with students’ demands. 

The government chose not to engage in peaceful talks with the protesters. Instead, it launched a major crackdown on the protesters. As the situation deteriorated, the government shut down the Internet and mobile networks across the country. But reports trickling in suggested that at least 39 protesters were killed over two days, with 33 deaths occurring on July 18, and thousands more injured. Other estimates suggested a death toll of as high as 64. 

Hasina, finally, resigned on August 5, 2024, after protesters stormed her official residence, Bangabhaban, in Dhaka. She later fled the country in a military chopper along with her sister. After she left, jubilant crowds waved flags and danced in front of cameras, sometimes in indecent and pervert poses. Others smashed a statue of Hasina’s father, ‘Bangabandhu’ Mujibur Rahman, the country’s Independence hero. 

Unrest Spills over across Border 

In a deeply disturbing development at end-November, students at leading universities in Bangladesh—including Dhaka University—were seen trampling upon the Indian National Flag placed deliberately at the entrances to these institutions. 

Some BJP leaders from West Bengal warned about stopping exports to Bangladesh indefinitely. “If the attacks on Hindus and their places of worship don’t stop by next week, we’ll enforce a five-day ban on trade,” said the BJP’s Suvendu Adhikari, a leading Opposition figure in the West Bengal Assembly. “We’ll see how they manage without our potatoes and onions,” he said. 

Amid growing anger over reports of Hindus being selectively targeted and attacked in Bangladesh and their places of worship and idols being vandalized, Indian truck drivers and traders have stopped doing business with the country. Hospitals in India are also refusing to treat patients coming from Bangladesh. Rumours about the border being closed have caused fear and many Bangladeshis in India are hurrying back to their country. 

And A  Major Bone of Contention 

Tensions between the two nations were already running high, triggered by the arrest of—and denial of bail to—Chinmoy Krishna Das, a Hindu ISKCON monk, in Chittagong, Bangladesh, accused of sedition for allegedly disrespecting Bangladesh’s national flag. Ramen Roy, who defended Chinmoy Krishna Prabhu in a legal case in Bangladesh, was brutally attacked there and his home ransacked by a group of radical Islamists. The attack seriously injured Roy, who is now battling for his life in the ICU. 

And Threat to ‘Capture’ Kolkata 

Tensions between Bangladesh and India have increased following recent threats made by some Bangladeshi former and present military personnel linked to extremist factions in that country claiming they would “capture Kolkata within four days”. This has led to concerns over security and stability, particularly in the border regions where migration has been rampant. 

The threat to capture Kolkata—however laughable it may sound—comes amid increasing anti-India rhetoric from certain sections of Bangladeshi society. These sentiments have been linked to Bangladesh’s political instability and rising tensions between the two countries. Some Bangladeshi groups are promoting a narrative of claiming parts of Indian territory to form a ‘Greater Bangladesh’, a territory that would encompasse parts of India’s northeastern region—West Bengal, Bihar, Odisha, Jharkhand, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Tripura, Mizoram, Manipur, Nagaland and, in particular, Kolkata, which they ignorantly claim historically belongs to Bangladesh. The rhetoric has sparked concern and contributed to increased surveillance and security along the Indo-Bangla border. 

West Bengal Chief Minister Mamata Banerjee, on Monday (December 9), warned these Bangladeshi radicals that Indians “would not quietly sit and suck lollipop” to their claim to take over Bengal along with two other neighbouring states. Her swipe at the Bangladeshi leaders came on a day when Indian Foreign Secretary Vikram Misri visited Dhaka to meet officials of the interim government led by Muhammad Yunus in the wake of the attacks on Hindus in Bangladesh. 

(The author of this article is a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com) 

You are excited about investing in mutual funds, with dreams of watching your money grow steadily over time. But as you start, you realise that not everything goes as smoothly as you thought. This isn’t because mutual funds are complex—it is because there are common mistakes that even seasoned investors sometimes make. By being aware of these pitfalls, you can save yourself time, money, and stress.

Common Pitfalls of Mutual Funds Investment

After you and proceed to invest in mutual funds, you must avoid the following mistakes:

No Investment Goals

Without well-defined goals, your investment approach may lack direction and fail to deliver desired results. For example, if you invest without a clear purpose, you could select funds based on ongoing market trends or short-term gains rather than choosing options that fit your long-term objectives. Result? Your portfolio could become unbalanced and fail to meet your key financial milestones, like retirement savings, purchasing a home, or funding your children’s education. 

Begin by setting specific, quantitative, and realistic goals is crucial to avoid this. For example, if your goal is to save for retirement in 20 years, you would likely select a mix of debt and equity schemes that balance growth and stability over the long term. Conversely, if you are saving for a down payment on a house in five years, you might go for more conservative investments to preserve capital.

Skipping Diversification

Whether it is or mutual fund investment,, or diversification is crucial. Diversification is allocating capital across different asset classes, geographical locations, and sectors to reduce risk exposure. If you invested all your money in one sector, like technology, and that sector took a hit, you could experience significant losses. Diversification acts as a safeguard against such risks. 

For example, if you allocate your investments proportionally in technology, healthcare, and consumer goods through a , a fall in one industry can offset profits in another. This approach mitigates the effect of market volatility on your overall portfolio. Although diversification won’t guarantee profits, it is a necessary strategy for risk management.

Avoiding Expense Ratio

The expense ratio points out the annual fee asset management companies charge their investors. It covers the fund’s cost, including management, administrative fees, and other expenses. A slight difference in expense ratios can notably influence your returns over the long term. For instance, if you invest in a fund with a 2% expense ratio instead of a similar fund with a 0.5% expense ratio, the higher fee can erode your returns, especially over the long term. 

Suppose you invest ₹1,00,000 in a mutual fund with a 10% return per year. If the expense ratio is 2%, your effective return will be 8% (10% – 2%). Over the next 20 years, this difference results in a considerable reduction in your investment’s growth.

Timing the Market

Timing the market refers to an attempt to identify the perfect times to buy or sell based on current market conditions. However, this strategy is often ineffective and can result in major financial losses. For example, if you try to purchase mutual fund units when you think the market is at its lowest point and sell when it reaches its peak, you might miss the market’s most profitable days. Research has shown that missing a few of the best trading days can severely impact your overall returns. 

So what’s the alternative here? Consider a dollar-cost averaging strategy. In this, you consistently invest a fixed amount at regular intervals through a , regardless of market conditions. The goal is to reduce the impact of market volatility and average the purchase cost over time.

Not Reviewing Your Investments

Fund performance, market conditions, and financial objectives are constantly evolving. That is why it is recommended to keep track of your portfolio to ensure it matches your changing financial goals and market dynamics.  

For example, if you initially invested in a growth-focused mutual fund but your risk appetite has decreased, you may consider revising your investment strategy. Frequent reviews highlight areas needing improvement, which can enhance your returns.

Not Understanding Compounding

Compounding works by reinvesting your returns to earn money not just on your initial investment but also on the returns already accumulated. Imagine you invest ₹1,00,000 in a mutual fund that yields 10% annually. By the end of the first year, you would have ₹1,10,000. In the second year, you earn 10% on ₹1,10,000, not just on your original ₹1,00,000, giving you ₹1,21,000. 

As this process repeats, your returns grow faster, creating a “snowball effect.” Missing out on compounding means you are not allowing this growth to build up. The key is to start early and stay invested, as compounding accelerates wealth growth more noticeably over the long term

Focusing Solely on Past Performance

It is tempting to look at a fund’s past performance and assume it is a safe choice if it has done well before. However, relying too heavily on past performance can be misleading. Market conditions change, and a fund that performed well in the past might not deliver the same results in the future. Many investors are lured into high-performing funds without considering current market trends and future potential.

Not Considering Inflation

Inflation reduces the value of your returns over time. If you don’t account for inflation, you might think you are earning significant returns, but the real growth after inflation might be minimal.

Choose funds with returns that outpace inflation. Equity and balanced funds, though slightly riskier, often provide higher returns that can help offset inflation over time.

Conclusion

Investing in mutual funds can be rewarding if done wisely. By avoiding these common mistakes, you will be better positioned to build a robust and profitable portfolio. Remember that patience, discipline, and a clear understanding of your goals are essential to successful investing. With careful planning and regular reviews, mutual funds can help you grow wealth and achieve your financial dreams.