i A IN THE CITY CIVIL COURT AT AHMEDABAD CIVIL SUIT NOZOQBOF 2015 ESSAR STEEL INDIA LIMITED Plaintiff Versus THE CARAVAN 850THERS . . . . Defendants QJUNCTION APPLICATION THE PLAINTIFF ABOVENAMED STATES AS UNDER: 1. - The Plaintiff is a limited company incorporated under the provisions of the Companies Act, 1956 and having its registered of?ce at 27th KM, Surat Hazira Road, Hazira, Surat 394 270 and a corporate of?ce, among other places", at Essar House, Opp. Gujarat College, Ellisbridge, Ahmedabad 380006.. It is belonging to Essar Group (?Essar?), which is an Indian multinational conglomerate with investments in the sectors'of steel, energy (oil 85 gas and power), infrastructure (ports, projects and Concessions) and services (shipping, telecom, realty and outsourcing and technology solutions). Essar?s portfolio companies generate- aggregate revenues in excess of 35 billion with operations in more than 29 countries. It employs over 60,000 people. Its founder Mr. ShashiRuia and co-founder Mr. Ravi Ruia are ?rst generation entrepreneur industrialists who have made invaluable contributions in the development of core industrial and infrastructure sectors in India and have steered Essar to a prominent position in the global industry. They are associated with several important I - . . 2 national and international bodies and industry associations and are recipients of the Business India Businessman of the Year 2010. While Essar has a signi?cant global presence, inter alia, in, steel and international portfolio of iron ore and coal mines with. a footprint in India, Canada, USA, the Middle East and Asia having an annual capacity of 14 million tonnes and aims to achieve a global capacity of 20 to 25 million tonnes, the Plaintiff is one of the major steel producers in India with an annual capacity of 10 million tonnes, having an integrated steel plant at Hazi-ra, District Surat in the State of Gujarat. It has been set up by investing. over Rs. 45,000 Crores. It is manufacturing and selling various steel products, which are import substitutes used, inter alia, in sectors critical to economy such as defence, automobile, power etc. The Defendant No. 1 is a magazine published from New Delhi and circulated at other places, including Ahmedabad. Furthermore, the magazine and the articles published therein are available. on_ its website which is accessible to any person in any city in India and even in places outside India. The Defendant No. 2 is a publishing media company, having its registered of?ce at the address shown in the cause-title hereinabove and also a branch of?ce at Ahmedabad at the address mentioned in the cause title. It is the printer, . - publisher and the copyright owner of the Defendant No.1. The Defendant Nos. 3, 4, 5 and 6 are the Editor-in-Chief, Editor, Executive Editor and Political Editor respectively of . . .. (72 3 the Defendant No. 1. The Defendant No. 7 is the Author of the cover story impugned in the present suit and mentioned hereunder. In- the background of the facts stated in paragraph No.1 hereinabove, the Plaintiff states that the Defendant No. 7 by his e-mail dated 11th July 2015 informed Essar that he is working on a story-about Essar for the Defendant No. l, and that he would like to meet someone from the promoter - group, the Ruia family who will be able to answer to his questions with all the information and authority. He had indicated in his said e-mail that the broad topics of discussion would be about Essar?s ?nancials, its debts, operations in Singrauli and Bastar, accusations of having paid to Maoists and the e?mails released by a whistle-blower. In reply, Essar, vide its e-mail of the even date informed the Defendant No. 7 that while it is unable to understand the. theme of the story, requested him to furnish specific queries. As regards meeting sought with the promoter group, Essar sought time from the Defendant No.7 to revert. On the same date, Essar received a further email from the Defendant No. 7 stating that the questions would be relating to the topics I speci?ed by him earlier in which he once again sought reSponse regarding the proposed meeting with the promoter group. On 13?:11 July 2015, Essar by e-mail, once again requested the Defendant o. 7 to send speci?c queries stating that the same would also make the meeting with promoter group meaningful. On the same date, the Defendant No. 7 e-mailed the questions for answers by Essar stating that response from the Essar after moming of 16th 4 July 2015 will not be carried in their story. Essar duly protrided its substance .wise (as against question wise) answers to the Defendant No. It provided information on the financial- health of major constituents of Essar by stating that considering the earlier articles published by the Defendant No. 1 containing defamatory material against Essar, it strongly sUspects that the Defendant No.1 may publish a story to cause harm to the reputation of Essar, vide its e-mail dated 16?:11 July 2015. In the said e-mail, Essar clari?ed to the Defendant No. 7 that no court of law has held that any company owned by Essar has violated any provision of law, and that Essar maintains highest standards - of corporate governance and strict audit controls and checks and balances at par with international standards are in place at Essar. Copies of the aforesaid Email Correspondences are produced herewith by way of a separate List of Documents. The Plaintiff states that the Defendants without considering and/ or properly understanding the aforesaid reply of Essar dated 16th July 2015, published and circulated a story in the Caravan magazine the Defendant No.1), August, 2015 edition by printing boldly on the cover page thereof as under: POWER - HOW ESSAR warms INFLUENCE OVER INDIA AND The Defendants . have also titled their story against Essar reading as under: THE NEEDFUL Essar?s industry of in?uence.? The Defendants also have posted the cover story online on their website The aforesaid statements by the Defendants are impufations expressed ironically against Essar without lawful justi?cation and the same clearlyamount to defamation. The Plaintiff flirther states that besides the aforesaid defamatory statements, the Defendants have also made several imputations in their cover story against Essar and or its promoters to harm or knowing or having reason to belieVe that such iniputations will harm the reputation of Essar, its constituents which include the Plaintiff and its promoters without any lawful justi?cation and thereby, defamed Essar, including the Plaintiff and its promoters. Some of such imputations are as under: - On page 29, Part ONE of the cover story, it is stated that in September 2014, they lost the block altogether, when the Supreme Court cancelled the allocation as part of an investigation into widespread corruption in the allocation . (ii) On page 29, Part ONE of the cover story, it is stated that i found persistent support for the charge that the Ruia'family was, above all, out to protect its own interest over those of its lenders and its shareholders or of those whose lives stand to be permanently affected by the group?s pursuit of land and resources?, - On page 31, Part ONE of the cover story, it is stated that Bastar, EsSar is suspected to have paid of leaders. of the Maoists movement in order to protect its interests in areas under their control-but it also accused of in?uencing state machinery and having links with leader of counter insurgency Further, it "is ironically stated therein that is better at managing the Government than managing its (iv) (V) (vi) 6 On page 32, Part TWO of the cover story, it is stated that exchanges show that the company?s top o??icials had access to classi?ed documents from some of the ministries concerned and indicate the character of the interactions between the campany and the government employees. On page 33, TWO of the cover story, it is stated that started to exercise their in?uence with the UPA administration?, I On, page 34, Part THREE of the cover story, it is stated that claimed to have forged the .signature of his fellow villagers to allow Essar a claim over their land. On page 35, Part THREE of the cover story, it is stated that to Mr. Manish Kunjam, one of the members of the Chhattisgarh Legislative Assembly Essar?s representative asked KitnaChahiye?_ What do you want? How much?? It is further stated therein that Essar offered to pay him 5 Crores to stop 'the protests, to which he did not agree, On page 36, Part THREE of the cover story, it is stated (ix) (X) (xi) that a group of Pullpaar villagers told the Defendant No. 7 that there had never been a Gram Sabha about selling the land and yet When the Defendant No.7 checked the records with the local authorities, the land was registered in the name of Essar Steel India Limited and thereby, suggested impliedly that Essar has fabricated the land related documents. Thereafter, it is further stated that ?paid protection money to Maoists, something that, if true, would mean the company has directly help fund one ofIndia?s worst internal con?ict. -On page 37, Part THREE of the cover story, it is stated that company used to pay protectionan to the Maoists. On page 39, Part FOUR of the cover story, it is stated, inter alia, that ?Essar?s executives not only claimed connection with reporters and editors who could plant stories, but also kept tabs on desk-level newspaper . staff: On page 43, Part FIVE of the cover story, it is stated, inter alia, that a senior SBI banker asked his of?cer to tell Ruias to bring in money from outside suggesting that they have parked funds outside the country. Thereafter, it is further stated therein that does not have the best possible reputation as a borrower. and --., 'taxi(xii) .On page 46-47, Part FIVE of the cover story, it is stated that the senior researcher while tried to defend the promoters? position did not, however, contradict the banker?s assertion that may be unprofessional or unethical. He conceded, referring to the Ruias? business practices, ?but not illegal?. The cover story contains per se defamatory statements and or comments without the least justi?cation. It does not contain fair and accurate information regarding the a?'airs of .Essar. The comments made therein against Essar are reckless and wholly unfair and generally considered as disgraceful. The same cannot. to be said to have been made for public good. There is also no material to show good faith behind the publication of the cover story by the Defendants. Therefore, the Plaintiff issued a Legal Notice dated 8th August 2015 to the Defendants (except the Defendant No.2) and to one Delhi Press Club under a mistaken belief that it is the I printer and publisher of the Defendant No. 1 for publishing and circulating the defamatory cover story and further called A them to: take immediate steps to. remove [delete the ?cover story? titled as ?Purchasing Power How Essar Wields - In?uence Over Indian Government and Finance" from their Website, unconditionally retract their cover story titled as ?Purchasing Power How Essar Wields In?uence Over Indian Government and ?nance? in the August 2015 edition of the magazine ?The Caravan?, unconditionally apologize to it, unconditionally ?cease and desist? from publishing any defamatory statement imputation against it in any manner whatsoever, and unconditionally issue a signed clari?cation as per its aforesaid requisitions in their magazine website where the original cover story article was published and circulated within 48 hours of receipt thereof, failing which, it will hold the Defendants jointly and severally liable for all the consequences of their actions civil, criminal and tortuous liabilities) entirely at their risk and costs. The Defendants have neither replied to the Plaintiff?s said Legal .Notice dated 8th August 2015 nor complied with the requisitions made therein till date. The c0pies of the said Coverstory as printed in the Magazine and as uploaded on 7 its website and the Legal Notice dated 8th August, 2015 are produced herewith, by way of a. separate list of documents. The copy of-the magazine, produced herewith by way of a- separate List Of Documents, has been purchased from a Book Store Ahmedabad named as ?Stadium Book Store? having its address as 7, Ground Floor, Trade Centre, Stadium Circle, Navrangpura, Ahmedabad - 380 009. The copy (31? the Cash Memo dated 03.08.2015 issued by the aforementioned Book Store is produced herewith by way of a separate List of Documents. In the facts and circumstances stated hereinabove, the Plaintiff states that the aforesaid imputations made by the Defendants in their cover story against Essar, which include - 9 the Plaintiff and its promoters are highly offensive, insulting, distasteful, disgraceful and defamatory and have been made by the Defendants to bring the Plaintiff and other constituents of Essar and its promoters into disrepute, dislike, ridicule, contempt, hatred and disesteem. The Plaintiff further states that the Defendants have made the aforesaid defamatory imputations irresponsibly, maliciously and with the oblique motive of somehow furthering their narrow commercial and publicity interests at. the cost of Essa?r and its promoters" image, reputation and goodwill. The aforesaid defamatOry imputations made in the cover story without justi?cation have, as a matter of fact, harmed the reputation of Essar, including the Plaintiff and of its promoters immensely and is capable of harming their reputation further. The Plaintiff states that on account of the defamatory cover story published by the Defendants, it is facing worldwide embarrassment due toinquires being made by the several persons connected with its business, particularly employees, vendors and purchasers. The Plaintiff further states that the actions of the Defendants have not only affected the Plaintiff?s reputation and goodwill, but the same have also lowered the image and goodwill of the Plaintiff, among others, worldwide. Thus, the Defendants have committed actionable wrongs against the among others. Therefore, the Defendants, besides being liable for penal consequences thereof, are also jointly and severally liable to pay damages to the Plaintiff to the tune of 'Rs. 250 Crores as per the Particulars of The Particulars of Claim is- produced? herewith by way .of a 10 separate List of Documents and the same may betreated as part and parcel of the present Suit. The Plaintiff submits that the said sum of Rs. 250 Crores is a genuine pre-estimate of the damages suffered by it considering that it is a part of a large conglomerate ?Essar? which has investments in various sectors such as steel, energy, infrastructure etc. and having operations in more than 29 countries across 5 continents and the worldwide goodwill and reputation that it holds. In the. facts and circumstances of the case, it is also just, necessary, convenient and expedient and in the interest of justice and equity that this Hon?ble Court be pleased to pass an order of injunction to restrain the Defendants, their servants, agents representatives from in any manner publishing, issuing, circulating distributing or advertising any manner whatsoever either in print or electronic or any other form of media any. defamatory story or article concerning the Plaintiff. The Plaintiff states that there is clear cut and strong prima facie case in favor of the Plaintiff and against the Defendants. Moreover, if the reliefs as prayed for herein are granted, no harm, loss, injury or prejudice be caused to the Defendants. However, if the same are not granted, the will suffer irreparable harm, loss and injury, which cannot be compensated in terms of money. The balance of convenience is in favour of the Plaintiff. The Plaintiff is carrying on substantial business in Ahmedabad and has a corporate of?ce, among other places, 11 at Ahmedabad at the address mentioned in the cause title. The Plaintiff has its registered of?ce in Hazira, Surat. However, the manufacturing of steel is undertaken at its manufacturing plant at Hazira, Surat, while the transactions fOr sale of the products of the Plaintiff are undertaken through its of?ce at Ahmedabad. The circulation of the magazine is in Ahmedabad as well, which is evident from the fact that the copies of the magazine were purchased from a store in Ahmedabad. The Magazine is also available in Ahmedabad through subscriptions made by any individual. Furthermore, the Defendant No.1 also has an Of?ce in Ahmedabad at the address mentioned in the cause title. The cause 'of action has therefore arisen in Ahmedabad within the territorial jurisdiction of this Hon?ble Court. Thus, this Hon?ble Court has jurisdiction to entertain and try this suit and grant the prayersas prayed for hereunder. . I The present suit is not barred by limitation and the same has been ?led' within the prescribed period of 1 (one) year from the date of cause of action, which arose on 27th July 2015, the date on which the inipugned cover story was published and circulated widely by the Defendants, including in Ahmedabad. Further cause of action has also. accrued to the Plaintiff when the Plaintiff has become entitled to seek damages and injunction against the Defendants jointly and severally on account of their failure to comply with the requisitions made in its aforesaid Legal Notice dated 8th August 2015. 10. 12' The Plaintiff is approaching this Hen?ble Court at the earliest without any delay. The Plaintiff has ?led this suit without having access to all information on the Defendants. Thus, the Plaintiff craves leave to alter/amend the Plaint, when necessary. 11. (C) publishing, The Plaintiff, therefore, prays: that pending hearing and disposal of this suit, this Hon?ble Court may. be pleased to pass an order of temporary injunction restraining the Defendants, their servants, agents or representatives from in any manner circulating or issuing, distributing advertising in any manner whatsoever either in print or electronic or any other form of media any defamatory story or article concerning the Plaintiff; an ex parte order in terms of- para 1 1(a) and; for' such further and other reliefs as this Hon?ble Court may deem ?t and proper in the nature and circumstances of the case. Date: 19.08.2015 . Place: Ahniedabad teel India Limited Fwd)? M. K. achidanandanPanicker Authorised Signatory (Plaintiff) For Es lam?mg I, ML. K. SachidanandanPanicker, the AuthoriSed Signatory of the Plaintiff abovenamed, having its of?ce at Ahmedabad, do hereby 13 solemnly declare that what is stated above is true to my knowledge, belief and information and I believe the same to be true. Date: 19.08.2015 Place: Ahmedabad For Essa: e1 In Limited 01*? M. K. SachidanandanPanicker Authorised Signatory (Plainti?) 14 IN THE CITY CIVIL COURT AT AI-IMEDABAD CIVIL SUIT nozo?for 2015 Essar-Steel India Limited Plainti?' Versus The Caravan 85 Others Defendants AFFIDAVIT I, Mr. M. K. SachidanandanPanicker, aged 53 Years, Working as Joint General Manager with the Plainti??, having office at Ahmedabad, do 'hereby state on oath that what is stated hereinabove is true and correct to the best of my knowledge, information and- belief and I believe the same to be true and correct. Solemnly affmned at Ahmedabad on this 18thday of August,- 2015. For Essar teel India Limited I M. K. chidanandanPanicker Authorised Signatory (Plainti?) Essar?s executives not only claimed connections with reporters and editors who could plant stories, but also kept tabs on desk-level newspaper staff. Bhardwaj reported that OP Chaudhary, then the collec- tor of Dantewada diStrict. told him: ?Essar is supposed to spend CSR funds on development of the area. instead it is diverting it to Naxals.? Bhardwaj also wrote that Dubey had sent letters to Ravi Ruia asking for ?21 crore immedi- ately." The journalist accessed an internal Essar email that asked for Duhey?s N60 to be given the money immediately. since it was ?essential to maintain the. operation of Khan- dul one connecting Bailadila and Visakhapa- mam- The money was duly sent. When I met Duhe}r in Raipur this summer, he told me that Essar. through its CSR fund. had paid between t9 crore and 110 crore to his NGO. .lai Johar Seva Santhan, over 2010 and 2011. He denied that anything was paid on to Maoists. He said the money was meant for medicine and scholarships for local villagers. although he could not tell me how many scholarships, and of what value, his organisation had pro~ vided over that period. Immediately after the arrests. Essar released a statement to say that ?baseless allegations are being made to hurt the image and reputation of the group, which is a law abiding corporate." The case was handed to Chhattisgarh?s special investigations team. A person who was part of the inquiry told me that. on the day after the arrests. Nehchal Sandhu. at the time the director of the lntelligence Bureau. wrote a letter to Chidambaram. who was then home minister, to ask that the case be handed over to the National Investi? gating Agency. Sandhu allegedly retracted this letter a few days later. Sandhu did not respond to my messages regard- int.r this letter. The case is now in cold storage, with all of the accused out on bail. Prashant Bhushan?s PH. stated that BK Lala had turned into a ?government approver.? and claimed to have evidence against top of?cials of the Essar Group. I Dantewada, a person involved with the case told me Essar was initially scared that it would implicate the group?s higher-ups. The case was delayed in local courts. and there have been no new developments since. FOUR m: NAME. or Desunmvnuu. a widely read (flilmt- tisgarh newspaper. crops up in the emails in a message dated June 3012. in which Rajamani Krishnamurti wrote that ho: had met Dev Sharon 'l'iwari. the newspaper's Hastar bureau chief. Tiwari "was an influential journalist." ltajamani wrote. "and can he a hi;Ir help to 11>- in terms of information and opinion building. if We cnt?aslt him In nut and at the same time will he ?Ii-great salut- ifu'c ignore him." 'l?iu'ari ia- miss it ill: "l?uiug discriminated and bypassed in contracts l'ill-I "til'U "L's for last two years." apparently. But when he met Rajamani he promised to help "set the records properly? for some land the companyr had acquired in Kirandul. an area that includes Bailadila. The email ended with, . Therefore. re- quest you to oblige him with a small quantity of business". 'l?iwari comes up twice in the messages after that?once in connection with an unspeci?ed local problem he seems to have informed R-aja mani about. and once about an upcoming meeting between Essar of?cials and some persons wanted by the police. 'l?iwari suggested in his message that if these people were arrested from Essar?s of?ce, the company would become part)? to the case. AAPKI JAANKAARI he ended?just for yourinfor motion. in Jagdalpur. I went to the of?ce of under the stands of the city?s sports stadium, from where many other local media units also operate. Tiwari is a large. middle?aged man with a bushy moustache and an easy smile. which did not slip away entirely even when i asked him whether he had colluded with Essar. ?Aop prathishta ki boat kar rake train?" he said, with a touch ofimpatience?You talk of prestige? 'l?iwari was recently appointed the editor of the news- paper?s Bastar edition. During his time as a bureau chief. Deshbandhu did not pay him a salary. Instead. he earned a commission on the ads he brought in; not enough. he said. to look after his family. ll Seemed easy for Delhi journalists to talk about press ethics. If no one in Bastar would pay Tiwari to he a reporter. he could hardly be blamed for heng Essar's ?eyes and ears in the: region," as Rajamani called him. "Harms-agenda}: kar is asked me as we parted ways, after I asked him about a deal he made with lissar to hire out some of his vehicles- I could have pointed out that getting contracts in exchange {or la- vourablt- coverage is wrong, but 1 realised that his justi?ca- tion was no! untenable, even if I disagreed with it. But the whistle-blowers emails also provide detail after detail of lissar's Ful?llment of petty requests from journal? ists whose situations are far from precarious. Essa r?s media relations operations included offering or granting favours to some of the best-known reporters and editors at lndia?s top English-language media outlets. he company commu? nicated closely with some of the Country?s top journalists. politicians and bureaucrats. and kept tabs on its dealings with them. For example. a spreadsheet dated 1 November 2010 lists over people. from across the political spectrum. to whom Essar sent Diwali gifts of il?ads ?rhcn luxury items unavailahlc in lndia vand whether these were re- turned. Only 21 people were recorded as having sent the il?ads hack. The (Linn-on}: reporters spoke to many to whom the il?nds delivered. Several denied it. or said that they were unaware that it had been sent. Among thus:- we L?nmactcd wow the former media ad\ isor llarislt lx'harc. said l?lt? did not remember who had sent him an il?Jd; the EM xMarxist loader Shalom Yet-hurt who said his Ill-llt't? rcturncd all gifts on principle: and .?lrun link-3. oilin- told m} colleague to ?Stop being a nuisance in more emails, lissar's executives claim to their has? that tllt') have managed to plant stories in nun spapt-I and magazines. um channels and m-ws wires. ?I?hcse ciaimg are my: always easy in since it is magi} to $6110?? haw {)ften pc?opic were simpiy chiming credit for hunest th?t-haggened be. in the ?:mnpany?s {Ewan}: The executives not (mfg claimx?i connectiims with re? porters anci editsrs wha maid plat?! smries. hut 3km kept ?365 on ?ask-Eexrei newspaper staff. (in 9 Juiy 2012,22. gem emi manager xvii}: Essa r?S? cunning be. reia?bns. group: 92; r?c? shit Rani, wrote to $au-r?bh? Sa X8113 0f exter~ n3} pubiic-reiatinns ?rm, tailing him {if ?egk guys? {a ensure that the fo?bwiugdag?s headlines. about actions the Gujsraf gevemmen; wag t?ikijag'ag?inst Essa}; mien in ?nun'famur or Kan? the missive saying, beiieve Mini is carrying-a negative headiine we can tr}? get it mil?f" gvi?ante that they succeeded: the- Min! {he fo?g?vi?ng?day read. "Gujara?: seals ??sark bun ?acm?ms?li Gm:- tmii m?curressp?mience, running- fram Augusqu mher 231.1, iamivcs Ravi Rum?z??z-th? ?mz?m?i?ii Skgn'igmy Gum Rag. Rag, WS s?then deputy ?tii?j?r?ffm?a Tmfay magazine, wsg?ie he had mtg; Peter Hasszm, who criceihan?izzdigtmernmentim 13:50:13 ?and 'reiirve? serge 913 mm?na??s, espe??i??y how I managmismries an shig?rxg?m?i si?ei. ?rmiymdu?ng my days Timg?s 3535;: mm: ?a?eda recent. Kiri-53m; far India Tcifayrthai -fe;rt?;1gre& 35331315 Ruiz}, an {hi3 (raver. He reibrr?dsm"gimm?ug ?wifh my fri?m?i" Shivnafh 7f?haikz?1, gifmmer NDT??t?fjau mixi- isr. ?nng a Cuba Raj: {hm} mau?m?red thaghig daughiei?pf?indri?a; had graduate? xvii}: 1: degree in sociaiagy ?eihi {Eniwmmitga ?Shivnath m?ced 31mm some gran? CS8 {he Essarng?ug} is {icing amass Lm?iia,? he ?Tarp. ?Can she work with {chasm Mead}? twu; week's inter, Raw: repiiexi brie?y in (Eu-ha Ray: ?Phrase stay in much dazighfer, Qindr?ia i3 Wat-{mm wad: with aurEssar ?mporat? Sociai Res-pmmihi?ty Team. I we! ask'M?an?isi} ?e?ia to (rewardinate if it; is with Emit." {)Endr? i3 was subsequ?n?y izzterviewed and? gai?cea with 33? i3} {3921137, fS??i as Suaii Bags; wratem Hm HR execuzix?es, Rahui Tan?ia and Malia. {hat was :13 take her re m? what she wi? {it} in "i di?timr?'y Farms tuber asking Ravi Ruiz; ?air :1 31613 far my (112213 R336 sai? in 311 email in respanse {u my guestioas 3130:}: this. "in (minim). guerfb-ciiy i?gim? fur a father 33;: seek a jab fur a ciaught?cr. m- 2171mm} far he; Barrage.? He schimi. "1 am a bridge bu?dcr with my 31mm- my cum-2cm i (in amt burn them." in 3 uppiicmiun to his ML. Pix-15km! Bhu?imn (uraciuni pagilished ?f?chvficl'z magazim in .i.3m?cru? hm? 2(351? ?faith {by dncumcm cirmm-ai was suxnpran?z?smg. 'E?iw gram-ca errmn 53w: ?uuz?ng'a?s?i and Ann: Am? mi 13:91:: huh-z" ?5518}: Kinsman. ERIE). 2213M in (153?s :md 23w: ihc LEM mar; amassing Essay 1hr ?13 ?m'cz?wwamai the 3U 3mm due if." {hf {2 xvii}: Lump '?"c?ccnm_ in. "2:133 in Kauai? Rain} mm: Sizmi. :3 vurpuzxuv 2 . g? L: P. MV- Hi??sashlih?..?iHush Litres? Emir-a: Rx! Ei?liifni?xilbi}. 5L9: Essar, which had already wen. licenses for 22 circles through Vodafone, in which it owns a 33-percentstake, allegedly brake the rules of! the licensing agreement by ad?itiona?l contracts through Loop. hm met, ciaimge? that. shi' ina? ?mox?dinatemi? f?Staqr Tehalka and was the an}; art-Rig in 3??i?efizng?ha't ?tfi??th 355411" Was sis-:1 the pring?pai 'sgu?mt raithin 5n Nuveni?hg?fl?iij?t which-{ac- C?rding g?ns?am PIL. it paid magazine cram. m: SH EEK 5% mi Essa gigs ma ch-igagiimszmay he itaziicazea ii}: ?iatr? fact gram: 3&3; ?gme?ijn ?nk-the -::mj1ji:}r carrugi?mz scarmials ?ag 7 [?33232 "ifo??ggt?f gg?rigli'c?h ?a?t {sf The: i?ia?r?i?ask?? suhj?gfcz?bf' Kiwi} 13?s gyms: 1:23} a?ixmka c?nimvem}: mi??e ark-bathe, 1' gig: 3 35:33:52 af?rm? hagiLgi-fmzp Wig gitkihg m. mack" {hf} $353336:an pregm??iby 3&ng artfg??c??i??iu?i? (tempura): gas-Phase! axisfea??ih w?e? as {he Ruin 'fmniigr in- 2038, 2.4m}? W322 21 (ef?camrc?cm areasihmugix an Erbium}; :?t?d?ii?g??izi? 9? {if Swami?gemfa?un specrmm ?giimx; was Ms 133212 the {deem}: axiinist?r. Eucm??gmm?iers ia?a?ed K?mn am} {gimsfaxfi Erasad 'Kim?a?n, tix?gist??g??g'brmh- (If Sims-hi and. Ravi 32-6351 the {38$ claime?? that 1123;) was 33:: which ?3 mam caf'nmrz?: {than 13. chargesheet i? E132: Sin-vi Ram. A?si?mixa Sha?h?z?. yenmger mn-?diima 523:3 i131 ., Isiiwati {if?sa? K'Emimn. anti Vikas. Saz?af?m? supgress?i? i526: ?icks 0f agsmiaiimz? bemwers the gratmps- 83-53:, which hm? already was '32 iiceme?t??rmgh ?xiafqne. which ii? m-vwsd 21 stpi-ramzt brake {he Ram; ?:15 Ehf?? ?'tam?z?1g sgraegsmm by 315:7; '?ki?iing fhmug?h Limp, L?l?immi dis: (gun?re? 4235 peer? cen'i a? Lamp When i? {at the 3f]; wwtrumwa stake aha: ?133% vic?atc my Iiacia in Angus: 3mm xvii-m: mmpizzima wcre ?rst made an iht? the: gi?ugxui'nuim m? mirum}mammalion m- iba?a?affairs. Th?s. was a gu?nhicm {Ema mm W33: eximmeiv Lawn in m; {hr Ezm?i. fisszaz? {wi?m?lua?ws :2 M-zmrhiy infursz ziam 35332-32? mgr-1321. :3 :zzhuizmni mi. 13% ways: {but magnify mu, w?s?z mums .dqsa'rihing?g ?h?grir 5w . . {m and 3'25; Mains? Rams}. {am-v zu? Viz-:1- c? 1 int:- rm igk' 222mm Ua?tm?mws? 3m :9 was gmmu: $3323in 12m? Shara? wizE: Raw-i. and ?ash-km? Ema "Hear names in 2:12:33?; :3 are: b? that will .li'siS .1 - .Ia? At least twice, both Reliance and Essar have been implicated together, in cases related to their petroleum businesses. Most recently, this February, the Delhi Police arrested executives of both groups?along with those from three others?for stealing sensitive government documents from the petroleum ministry. mzzi?atr} pertain In. and lucatinn tnlurma mm in vr tit-titling Who should iZli?lle' a and him: tun points in this rt-purt :1 concerned Lump. and ?zz-at iinliul it? {llt? Ell? tiurpumu' .t?xi?l??il's. Kathi! that {Hf-it" ufufht'ial t?utiipl;titit~ had 34th tn the En- l?iiz't't?rnrutu. ll?n.? (?t-mml linarcl u! bin t'i laxa- Erin,- prim. usizzistrr .mtl Illi't't?lnl' ul- tht- String.? I 271x (H?hn- 'l?ltt? plan ch'wt'ihul it; lb 'l-I l' and Fk'g?l} lz'nm ?til 1:2 PM in .2 mi- EIL: 3.7- hi Fri 5' The chartered ?mutant and RSS associate at a gathering with the BJP leaders LK Ade and Nitin Gadkari in 2012. umn titled ?Current Status." liedia wrnte that that a mem? ber of the department of teiccummunical inns had approved 3 mm: that called for sending a shaw-causc notice to ?the company." and sent this in the talc-com secretary. The SEC- rctary. the IS said? "cleared the ?le and said in clear terms that show cause notice is required to be sent." Alsn in the MRS. lietiia mentioned that the ministry of t?nrporatc affairs had raised um queries about managerial ?tmtnerntinn paid to 3? Suhramaniant Lnnp?s chic-f execu- tive. Emit-r the Current Statm column. Kedia wrote and highlighted: "(we simuld avuid referring this in futurist". Clearl}. not every Strata?cn?. 2-1553? tried in this matter liven thungh Essar t-xitul Elk' sectnr in stake in lissai In its internatinnal partner \"ntial'nnt'. tin- yaw: against Ravi and :?mshuman Rum. llil' lKthililh. anti 523ml. :1 11' \till gu'finx ts CHARTERED ACCOUNTANT. Ill)! iminstriai t?ns *uplinr t't-mcmul the law IUHIN it} hr in tht- reigning: (titan in liltirtti?ohzti tugs nit}: tin; :mw i .ai-tcr his new: tuna: Ui? .1 mazniu a? :m inlt especial 2 .zz?rnns iW'i?rv iratl :7 ut' 1h;- Rut; - - 2: . 3m; L:wit' tut The: farmer {ism-tr execuzivc, {he {armcr aswciazc {if?m?mz?g?. and win} is a Sympathiser, ?shnet} that Gamma rth}; had been c2051? the .Ruias for decades. All these pailpli: mid me that Gurumunhy, an associate uf the fRasht'x-iga Swag-?axnsevai; Sangh had heigc? bring the Ruins Closer several 11:33er in'th'ei intiming the farmer deputy prime minissurL31Krishua A 1322? hi~baS?d Idbbyis't Said the Rains did ?Chennai?csno necti?rr? with Guru?munhy. ?Whenll ca?ed ?ummurthg said he knaw the Ruins {mm Chennai, Exam mimatmi ?0 Mamba; in. 1973. But he when"! asked him Whei??f'he had canne'cte? the?Ru-ias With the BJP, and refus?ed? to speak 1111631 One ?nanciai expat: i Spilk?? it) ai'icud?i a meeting ht:? rween G'u'rumnrihy ma Shashi Ruiz: ii: the 19995. At-ih'is rimming! Ruia?e'cizir'ed maths. hat} planned he set up 311 tail re?nery in lu?iai?efmfe Ambg?ni cfi?. Ambani upwe?lmiia-?s ?rst private. 13-15998 Jamn'agar, next gg-Tg'adinar. {he'site aftiiejpmpagz? Essa? plant. W?m?k bad: the can:- panie? 913mg amumi tin: samgtimc, but Essar?s p12 m? x?mk-smgn (years; bilge: t0 cammissim. The {-i?iaxgrsa i was {ski yr?epgxr?ydug Dhirubhai?sia?uenm'in {heth Mumbai and Swarm- A C??ib??'fhat hit Gujarat in 1998 further d?iayed- the '52-?13? By fig?e'time 3p and twining. Essa: hadRastth?-saies?mx break that the Enjamt gaverw mew ha? crEf?reii. it the smrtuf that Rad-i3 nee had g-vai?ied. Falkm?ingy?urs{3f I'itiga?an, 332:2 yea;- Essar ?lza?rgpai?fhe {35,183 crore in mics tax that}: owed the Guj?rapgawfnmeuz. ?Sec. fiel-ii?inte fS'kmwn 256 ?evasmtingfy {3mm} m? wards an}? competitkm the former swim executive {ski me- ?They want-mi sin cigse dawn." The fangr af- ?ciai of the Km- ag?reed. ?Emmi:th A?ibani aid nut want to see anybmiy in the game space that was.? Hi: ?impe? {it} ?egt?my his rivais, the said. Amhn?i, he airi?ege?? ?mm RE the banks net in give them mare manayf 2m} say-ea mki the {inmate minis: r3; it) hei'p {hen}- Reiiance and 83:23.? have bean impiisated {tig?ith?r in at $333! (wt: cases reiam? it: their pet mieumiausinesges. Mm}: reamu'iy, in Feiaruary this year. Deihi pi??ce aim acutiveg of b?fh gmups?akmg with these three 0th? 2rs~fcar 5.123%ng sensii?ivc sciocumums {mm the pa: micam ministry. Reliance Industries iSSUt?d :1 Simatnignt ism using ?is? {he accused execmivc. ?35.43:- Chm"? In re main 5.5.1611; E?Ghii? {he WE}isiie?luwcs?s cmaiita Show rm ifY?idL?R-Ci? as? $wa in this case {11? in any uthm. {hey Lia ind?cam 2.32:1; 33533:" i'if?i?ii?ii? haw been 3353?}? a gram {it'd} 23m: ?m?u?diy vuui??icz?ziz? Thy in?ux"; dm' in th: "ma?a I aim Hume {yum ihc ?nzznur, ?033, rims? mihmys and xh?ppi?g misz?mria?s 2:13? Li?l?i?fiify' a'zsz'zzm?ard WM: gnawing-m Essa: Ugh: Warn mum u?izh budge: gn?ugmsais {mm the primrsh-wzm in? {@355 13 gear a?xui 331i uh}ng game; {mm highdmei i tuber: a1 {mm mag. 3w: waii u? 2013, sgmiqe 3f the high expectatimm for fmtivc gcs" {Utes 1635215? in gm?emmem of?ces. Diwaii and New Year were occasian? for gifts he Emmi in tin: middi?e am} the ranks in'varin'us niinis'rr-SESJ" he white, ?whu?rg very vital in sustenaricae of impartamr infarma?an and .cincumems.? I'r'i February 2913. Bajiaji'wmte Prashaaf R?ia a ?ow g?p?g?im Iggy custom dury'qf I percmt qn?rude ail. Nags}; Nagy?, the Essa: 011', had ?i?diPta?ha 11;: at ?$42193 E35??pubi.ig- sector underta'kingse?wefre resisting it, but if forgcd ?l?Elj-eg woui? pass my the imgaci 1m pvt; swim. T'th have- insiic?te?arhar sh'guild use-mt in?iachrc? 'smpihis.? Brashaxit' fbnya?gi?rhis emaii;;giigjg?temi?i~ a Saturday: nmmin'g, fa Simif. Elia}, ?shing-15331: to caHhim, saying, ?Vie to stop-this.? B?jaj within Imif?u hum: call in. maritng E?ra?lha?i?ji; xvii} meet Moiiy'ji anti {summer gain {:9ng by the em ails, Veerdgpakia?g. the minister furl {mtr?ieum and natural gas,- app??a're? to be. in minimu? ?ns 3113:2958 cah?tgct with the gr?u'p?s eXecuriveg-thmugh? .3613. 3.3521} 3'33 his Colleagues. seemm -_have met M?i?ly severaf times 10 talk about intermfs. in (me ema?, Pra?h?l?itR?ia Wyatt that'iie. mm Mai}; whc: had ?very agreg?fwith {if juice ??scomry? fur a Canal-bed mttham ?nd: $11: :R-a?iganj, Bengali. 7 I In .mot'her emaii?, Vaidyanarhaxi Energy's ?residgat 3f carpnratt; rciati?mgi, Ef?e g; _33? 1?3} Ashish RaEgarhEa, duded meeting With. (xii- bi?tif?? site aff'the t?ast?bf awar??z? inl-gi??. which had mimd in z?rz? tape. ?53m- wnnteii :0 get {having an it. Thelmiai'smr ?xx-'33 teenvinced with {Saa?k?d his"?$ to semi a strong note {he miniSt?r?s side we Sgcy'm a de?isian on Ram-a within 7-K) days," Vai?gauathau wmm. In Nm'em?er, in mm emails marked ?Rec? {mm media wanes,? Rajgarhizg {Qrwarded M0i?3"s? mm: t0 the m?mn ieum secretary {3'13 Rama?R, as we}! as a nuts.er gigging sweretary in {he mini?try to the Cabin? (Zamhiittee 2.2m Ecancamic A ffa?rs, {he CCEA, Mo?y, cleariy impress-mil with argument, wwte that white it might be cmwa?i'em is; assert fresh bidding an the Mask, the ?li?i?ff}; End to be away: but}: at" the iega} imp?cal'jnn? 9f aioitag m. :2an of the inmact of arch dccisimns {m invesmrs' sm?m?m?. fie: hated that {he ?nance ruin?swy hm? already magi}: {barium ministry?s: nyininn an his di? {mt f; mi gai- isfamaryp Ermmai a? 331V miuixn'y dari?cmiz?m. he ?rm-c, is :igwpg'wpriaiy in 33336:" Ehe mailer be?n?v {336' {3.355 ?$152 31135335 a? {he amiiahic upt?oms 32m: in:- Ciu?s: She ?naiizmim; with ?55312" UST AFTER THE Gamma. i-zLEngmw may, awn: ma; {Wu ?mw??aE uf?tc :0 Ruiz. in any. in: said {hm {iwidmi my Affair: arm?s; Usih?." "z?aizi? $230; a. .-. 3.3.- um: um?; 15:31: fining; ?gsahimnmn-kj?. E: $L?l lAHHil? G?lthl? The minister for petroleum, Vemppa Mo?y, seated centre, became the unwitting audience for a Greenpeace prom-st in 201-1. tinnal letters." He suggesmd that Essar gift about 200 ?top- end cell phones" [0 some P5, as well as to top bu- reaucrats. with cards supported by us by about {5000,5? per month.? Many corporate houses such as Reliance and Airtcl were ?already doing this" to build relationships. he said. "and experiencing the bene?ts of such a strategy." The StrL??nLl internal note concerned. once again, the mat- [er of jnhs. all corporate houses come news: the phenomena ?if ?joh rcqucsts' from the power centres. ic Gm 1. al??cr-s that they interact on (in everyday basis. or from pnliticians. or bureaucrats." he began. Such rc? would lizn?c in he entertained. particularly since the Dclhi (can! interacted regularly with sonic ultlic country's most inipuri..int pulitical leaders. In any case. he: continued. tl'n.? were nl?tun "highly qualified." Sn. ":2x the m- rut?i'inting {rum outside. u?hy amt llk'nt? gu-nplc?" cunt'ludctl hr saying. request at lt?tlnl 3w) inhx he for this kind nl'" t?cqucsls." Tin iircxsurt- (in lissni in :lCl on gm'ui?nmcm repruwnm il?? fw? i't'i'Hn?i ?li?l?itltii inn) C?x?l?c 'lLll?d il'h' Malia-Ii t-piwtlt'. In this emails. 1 multiplt- instaiu'w e-t? .mtl lczidcrs ul- acacmi pull! Emil ?gift-sting. z-x'cii putting: m: .ilLJiEi? In lair-t? llnutirul wimt' nl \i'hiim \ia-rt dim.- i32- ni~ ?grim; Emmi-cc Ililifrlt" and ht? assumed tlu. of?ce of India. recommended three hires. 0m.- =35 his granddaughter. SuchiSmita fur whom the president's ulTicc facilitated an internship with Essar?s of?ce in the; United Kingdom. Thu emails reveal a laundry list ?if such cases. in early 2013. the treasurer nftlit- Congress part)". Morilal Yum. 5cm in thu resume all Surbhi Pumhii. whose husk-anti already worked with Essar in Mumba'. In an email to Rahul Tana- ja. Bajuj wrote: "Sim-L- V?niim ji has personally rm: and the candidate is vcrj,? clusc family linked with \?nhra ji. 1 Wimld request you to kindly lunk into it." Vera "guncruily docs not [all any work," he and. in his natal: that Ul N) wit-1i ?tint illt?ET nditlziztw l! uni. with llsmi. there: arc h} \12. Bun: \t-rmu Stct'l a?xlr. \r:pr;xk;isli .Inisxxul kiln-1?. (?nnl Mr. Ninjcm' litllildl' (pit then .?Jznmi?r #4 this}. \?li Multan gciiL-i'ni .xu'r-cinrx m? 5 52.1113" \lr. l'igx'iizt} .wninr l'-iI! 3571-.? Emile-iv. \lr. lLll" leach-r: and Hi mum-:2 2111331, in L. wii'. Min-m. Almost all the bankers who spoke tome repeated an old quip, accompanied by either a scoff or a nervous laugh: Barmw a hundred rupees from a. your problem. a hundredmi?iomit?s the banks problem. Jh?a, who Was {-1131} 3130 the. part}! far, Mag?-lya Pradesh andl?ieinm'eythg P?s natiggal' in many igrsrig?m? candidatesare: also a?tgched rathefgigailsi?zrea?s- state? that #1256 made theft?tf??g;?l?1i? {ms "af?ciai ?Ealihg? gar maid {Regain-its 131$;- taess by {he use Qf'tiie?ir- ?m'gun?ting offs-rites under ?fth'e a??3q?;zt?np fist?; Anather sem?emails" teraais1??mt Sy?ii?i?, secretary ,iu?ifihe steel}: ministry, ma?a 712st 31? ?gg?sz house in us a setrezziry ?3985 tii?on wauIdEhave had a 5925c a?d?tted {n'hi'm?iin the the government. A 2&3 e?maii-fmm Raja'mani Kri?hnamurti described Abbasi as. wry imparfant per- fur the Steel verticai.? as; "ma?mity 0f Kssar'i issues were be.ng handledby Ei?l.? {twang mini-3r 1113:1955, :mi wiry-me. Alihasi?had him 33mm Ii whine: samu- {has the mi?iswr sf 5mm far Stesri was preparing an industry issues, He had'aiso ?vi?ad {he magma}; {a mum against a gmemment px?agrmsal 53* th'raugh?miustry hnciies like and E?i?e was behax? ing, in ef?ngiike a persanai ccmwitai'nt to the camps my. i FWE SENT Essan AN EMAIL with questions: abet}: many of the issues raise? by the whistgm?hwer?s emaiis and my cum reporting. Man?sh Kea?a, the Seniar Vi?e yresi?ent of affais's, respemie? (m grong?s? beha-if, He did no: ti?mc?f; answer any a? questians abrmt the gmup's ?nancia? pmbiems. its a?eg?i paiiticai ?fths, {yr iis inmius opgrandi in Mahan and Baa-Star. ?Causi?icr?ing {he eariiar amides pubi?shed by jam," Kedi?a wrote. "and: having rsgard t1} the nature and mutant F913 present queries! we have every mama he?cvc that ymx-inhm? pubiish an amide: containing imputatizms in harm reputatitm." Essar?s stimwpanies ?have cream? signi?cant mine m- su?uhok?ars and each mm: them mean? {Eur standard Emma} pz'escribmi by {he iit?sm?vc Rani: n?ndiu 52nd at he? rcguiumry um Waf?es.? 23:21? {csg?m?asr umtizmuti Fuz?i?hcrx ?Tm draw, my mum (If ?zm' Ems iwh?l :ha: 351'}: cum-- pa Ry Harm-ti 11}: fir-:mr has: Viniaie? rm; ?rm-?aws; fur imam! cumrmmitics 1-3fo 1:3: 533' fihxz?sr's bassinexsm in India. Keci?a 511%}, the gzmup 2mm ?7.3.11 witcm?w pm- ;gr?am ifwm. ?We hiigg'c?i you firm stink- x??i Eager: C(mm?gim?ffm drawing: :1 up [tn-m" 1mm mixed m1. 2mm 339131?: ml ziisztmiisx W?s} gain; 5132,1395: mm mm? wr?mii?c cxsai?xum to undersiznui the activities and achievements (If Essar ?mnda?tinm in particular." The furiner,seni0r of?ciai with Ami Bihari Vajpayce?s NDA gmremment laid me a story {mm Vajpayec's time in (:f?ce?an anecdate 22379111 how such sis-the Ruias understand the fumtkm uf banks and, the restrumuring 0? loans. 1:119:99, Essa-r. unable t0" meet its interest payments, was being hm; nde'd by severai hankg, mainly the. State Bank 1119153 and 33111;, bath P3133. When the granp ap- gqvem?mem for help, the NT): deputy; prime minister, La? Krishna Acivani?, caller} up the former af?ciaE tuft-y and ?gure'autz a. solarium, ?They were in bad trauma,? this 519130;] mid me, ?Am- hanis had them comers-2'3. Their Jamna'gar re?n?ry Wm} nit): matring.'Thei.r steel-mikng business was bad.? The af?vial issue and Cam?? up with an luring plan- ?Basicaj?y, i said, 3:013 56? 3mm: I'e?zmn: 3r: mzi?t?h" mum-y W5 i1 came: you put it Mm; the ha?kstwi? give jam 36:11:11? The NUNS ?nance minister, Yashwam Sinha, 131691; at (he dea? and daci?re?- himseif the af?ciai'said. Then Shashi Ruiz! saw it ?Sham camera my mom and said; ?E?hu?ve dam:- me what Even Uhimbhai Aj?han? cwi?n?r haw} He said, ?Yt?xuj?rg asking inc-2:1 hive (If? fins-i? newts.? ?I?Eze'tjf?ciai was: taken and sai? {lmt {his was, after ail. what restructuring mirajijed- 'Et?r?ge?iy' told him, In India @335: am: Iiiving; tiff it"s giw Eng" mamma- n?mney.? ?1?he?ixf?ci31 mm mm ?He '99 as St?shsm; parka :fhiz??w- 1?60 get {no mare men?s-32?" The mil ?cia?f?aid he mid Shashi Rum, ?For that have g1.) the peliticians.? Ararqu this ?ing a senior SBI-banker asked the af?ciai :53! {he Ruias it: bring same mane}? they had ahma? hack f0 India; ?hike ?7019 Eraharse parka Eagle. Ye}: be? make fags}: pafsa nas?zi hm) bakaatpaisa {he uf?ciai said he wasmi?w'i?iei} the-m ?ring in money matside. They say {Baez?s ?ame, but there?s much. The af?ciai 533:5? in: duiy asked Shaghi Enid him: much mam)? he had parked numi?e {he mziarry. Six-3511i him is {ske- a g?n?sg. ?30 1 said 203 mii?cm Eng me 35 much? aliege?iy said? and then pmm?iied {fraiw up a ?st 9f his com pan-i135. ?Ye-uh kis'ki mmgany bar? maxi cempany mafia-Wham mmpany is this? 11?s mime. ?I?m?worth 15 billion abmad.? ma monsoows HA1) JUST Mummu when i iamied there, am? after the rag he msuk? 13g ?ua?s-wa mammal} rimsE-?wt?h?? cit); mt?astfiy magma} iffS muting. 5 Spoke 1U {warm dogs-:1 grei?ig?eie wager?? cd with the city?s ?nanciai rim-vices in?amn?y. {rising 21': piece: {c.lgf??bcff :1 picuiz?c?: him E5532: was. ?ning, am? in}er if was. viewed in {ht markeis. E'zidian haw Ezisuu'icziif}; rtiie? 23:1: dais: if?: gram; and {$123 Chief 3 Eu 2'11: this: has ii: :i $533? in the past: mid mi: Hm: Jam? wen m: difx? ,1 111, gm. 11c added ?22453? Jaws 33m haw;- guagsibic 21.3 a s?a?n?zus: {he rapw?zc repeateri 2323 mix? quiga afi??mipfi?it?if m2}? @332? a. scuff ,?ii?k?i-?i?ri SHE: i \u ur a nus laugh: Borrow a hund red rum-us l?runt a bank, it '5 your pruhlcm. Burruw a huner-d million. it's the bank?s Almost mut tuul; a dim rims nl? lk.? rampant":- ?nancial health. A senior analyst with a large ?nancial scrviL?cs ?rm said ihat. many- prmnulc-rs (if la corporate hotiscs. the Ruias were "fairly savvy." and "very clear: upside is theirs. downside is the banks." Busi- nesses have. largely. three sources for raising funds: hur? mwing from banks or institutional lenders. selling shares. or selling bonds that prumisc buyers a particular form uf return- Essar has a history ofunfavourablc returns with all three sources. Around 2005 and 2006. most Essar companies with as? sets in lndia?such as Essar Steel and Essar Oil?mined their parent companies outside the cuuntr}: In places such as Mauritius. the United Arab Emirates. the United King- dum and Cyprus. According a non.- by Cur? ruhnraicd by 3 Directorate nf Revenue IntelligL-nce nntice. these companies uuw come under the ownership of a hold- ing cumpany namcd Essar Global Fund Lintitcd. owned in mm by two trusts based in the Cayman islands. These two trusts are managed by the corporatc trustees of cnmpanics hast in Cayman Islands. Each (if thug: compa- nirrs has live bene?ciary companies. Eight ofthese rom- are wholly owned by [he Ruin family. Sui-h structural complexity is not unique to Essar. and n'tanjx' imurtmlionnl cnrpuraic grnups are based in 133-; ha- such as Ll?tr: Cayman Islands or the British Virgin ls- lands. These tactics discourage transparency: a or an has. nu way in gauge the campany's m?crali iinam-ial health unless the cumpany volunteers access to its books. information about Essar?s ?nances. was told by rho chief executive: nl a bank that has lent to Essar, "is uniy available with the lenders.? Taking all of Essar?s com panies into account. there are probably well over 20 banks the grnup. Each hank gets access to cmnpany relevant to their due-diligence procedures. but no more. For this reason, it is impossible in de?nitively calculate the gruup?s total debt. For the 3013-44 ?nancial year. a senior scarcher with credit-rating agency that tracks some (if F.5- sar's L-nmpanics put the ?gure abm?e {125.000 cmru. ur $20 hillion. The bank?s chict'uxccutire put it at {145mm crurc. ur marl): $24 billion. Uch is at level" nithc Essar nil-.i me: the holding cumpany alunc nwes mm?u than $3 in lit'un l?nis milmi unli ligui?c that an banker ia- I?lssi?tns in mks. including thaws mi {hr shamd \K'itlt mm This im'csnm-n: l?L?lUiu'i? .1s :nul 233:2! ?adding rump?Jan's tlcin .illil'ill?iik?Ll tn apprm?tuaici} i?l'ill?L?S air 53 hilliun l4. ii: at?; in :ms Lssar?s stucl Ulil?l.? in Ii:- :tii-gt': van-x xrvru in a t?vmhim-ti tlcitt mi USJIUH rmrt-s. 1:2: Haitian; rampant 's "stand alamc inans a L-riattewz- .?l-23a\ il:L Jill: 3m: \L'lzi, In it't'ttzt-t; Liv-.1: 51w! .3 .it-gci?esttu" Jail}. [stand mm mu . a; .. r. UTRIM E?l'inJleil?lUH 1H wastold that Dhirnhhai Amhani, the founder? ochlianne was the ?trendsetter? in ?environment management," and the links an inferior ?carbon copy" 0f him. snipped rating a number uf Essar cumpanies because Essar docs not prm-tdc them sufficient ?tiun In du so. in IU :11} qUL'SilUl?lh abut? ihc company's dchr. chia sent me- a break?up of the debt fuur group's Larges: rumpanics in India. whirl} hr: claimed were the ac- tual ?gurt-s fur the 3014?15 ?nancial year. {Everyone i met in Mumbai was calculating from iissar's 301371-1 ?nancial deciararinns; their 2014 45 declarations will only be widely released in Ilicit? annual reports by Septemhcm Fur Essar?s steel. nil. DUVJUF and parts businesses in India. the aural is mm (70.931 crurcs. if Lruc. this will he a reduction nf nearly 2101mm cruru l'rnrn the prcviuusmral debt nfthesr: companies. which. i learned. was uwr 1380.755 crows ($12.7 billion at current rates! if {he gruup?s debt is arm-ti". more than hilliun, even the annual inzurcst payments In service it. asstmiing a rate nl? l0 jar-r alumni. add up tn at lcast $2 hillinrr liq- sar?s lair-gm! in India is in Staic Bank ufindia. ltiltil is Jnnidcr dumestir :?imnng foreign hanks. thy Lumlnn-lxiscd Standard and ha ?i St Putut?sliurg large {ln' gruitp ?zl lissar tail?. :in- -- chad.- caccutixc said and \?pt?k?lfl- ?smalls 1 an: tn huld lik Malian 1hr 1?7'Hl?li?na l?ln' :?zats'a'r :tiss?: will ttzz: arntm?s uti- Le; En. ?1 111:: IlliliiRF Ets :Ji?ht Hit-tits a: has ht: 1.x nun tum ?pm. this slati's llhi inn.? i "xl? .2 Cl?- I - - inns; lh?ui {m 1? l? at:li" tn linial. ml. L'iirllt'l' ruin sun-a. lw-nH? 5.er ?as The chief executive tald me that a major reason for how bad situatien had gotten was its ?bad. judgment? and ?aggression? :they had simpiy some of their largest projects in the last few years. werth 16.3 times its {wer?fmgr timcs the ma?a for other large. steed CBIICEFDS 53g}: Steel, with a reported 31}; 3nd With 3.3. The rats! wine {laxiqna-iiseci banks has risen sta?gha from. $5,809 craze in 3811?13 :0 {3.6 lakh crate 29y D?cember 2314, ac?ardigg ?0121 Frags Trust 9f Bil: batiker? 3116i anaiygts .i?eiieve that these ?ggte? {30: m1: r?gm?s?m It ismzi- "that in the h?usipessef norii?a thebaziics? imaest?tofd?dare anass? an PA: LargeNFais?nG: ?5313}? stre?i?thanks? buck; they-?sqziffegtifhg vz?gg-af their ??ams tapit?} "mar- kets. The" N?A?S?of?na?mmliseds?a?ks p053 a- pigticui?riy huge his}:ng any gcqgomy, ami india. rams; zit" i??eo ricm p6ihtf?acaarding' fhechi??f ?mcntive. "?Tmiia can?t keep kicking the am down the maxi." he said? ?It. xvii? im- pacz 11.? Once a bank 19525 $10134: Of mmvering 2 it min write it sen its expo'sure at :2 discount at: an asstt reeam't?rimriun mmpany. Ear?cr this year, DEC 50ch its expnsurs?: Essa:? $51} cmre, to {he EdelweiSS Asset {Eumpany at a ??-gercent dismuntm?takiag on a Ems (If 2226 ?same. The chief weak rive said HBFC maid affurd to take: the haircut, but: other banks cal-lid um. ??ght mmpunnds very faSI?," he tlj-?? me. ?The {?nger they take??w pay it back??The bigger the probiem." PEAKING 1?0 THE CHIEF 2x33157111, the rap inw ve?tment banker, the Sta-?ier resesmher with the credit-raring; ?rm. amt the armiyst with a giiahai ?nancia? services ?rm. gave me a Eattiaed but sob id same {if the, Stage (if Esmr?s pmhiems, 313d mm: 3116 group is viewe? in the neun?ia wa?d nf Mamba; Emakiag. Nuns: 9f {heave pecpie were wimgg be iaiemi?m} ?for'this story; imiced. everyer comm-Emil wit Mumbai?s ?nanciai services indusuy (iispiaye? :1 degree pamnnia "i havan cmmuntercd when hum-viewing in Dcihi. Eve? ryune aske? {1131' i shew a? as 1 maid Tin: remarrcher and i mm :31 3 coffee simp in tho midmmx nuighhum?hc?md Hf f-?ns?ci. m1: {112? from Mizhumk?uxzi Rats Course and Essar Einusu w??msc gig-r23 :11ng mutt.? hamsv man},- nf ?lming-333 ses?v?ms 5mm As m: mikcd 3mm: Esxcif's; (waving my r?gsms'dmr {hm-:2 k3: aha cumpany?s pmb?cms. and {haw Hf {he lmiian mduy ins-J come of hunk: that z?imx-?c? 3:21-33: in 35:12 an 3:3; fur man aqua}; uhiic Banks. he with ?$121th inc mum: ps?m?zsi mama" anti 1 i an! 1. trumps:? {3 F3: 3? :85. Hits. Lm?ging a: the. size 9f ?5331?: hi: said, "smut:? should have puf their fun: down and asked {02? mam-3y." The Chief executive mid me [he prabEem was that PSU banks were iike "zombies," into which the ?keeps pumping in maney." Mast 0f theme I mm, {mm the ?zaat?cin! and banking industries said that pubi?ic?5?ttor banks had no incentive to act against rogue momma-rs. Indeed, they often had consid?rgbie inducements nut {aw ?ometim-es {?112 to poiiticai pre?um, sunwrimcs because of pin m' awaiting their seni?m executiv?s. ?(3031;33er the Tame; and, the 31:13:13." the senior m~ $32211?:th said; the Ruias? ?nancial (?36131in is ?a t?d er.? This ha?'?xamrbamd ?their 'pmh?ieims. timing racer}: ?mvnturns in same of thy: .i?diss?trics, they apex?ate it. The gibbaf steel sector slumped acmss 26,12 and 2913', the seniur tgsearch-er explained. Then ?Essar?s power praj'ects, inaud- ing Mikhail, him had patch; an?? as the mmpany?us?i get its can! *fmm 'l'aidsne?zi?a, ?pm ?ml?ilify-washit? when prices in that- cm?mirywent up bin: Essafimmkin?t hike its tariff}; in India? Fer its Sim and scaie, ?it-Z! campany needed ?deem? ps?ket'xf'he *f?iti? The chief executive me that a majm? reason far-Shaw had Essar?s situatizm- hasgmien Wasth? men?? and ?agrexqibn.? Simpiy, {1553' mimimmf same of their iairgest projects in the ism: {m yea rs. Th: swim re- said?the m?'t?hing. Essar?s (fab! hmi ?bailamiedf? he wid me, because at"