Tilaknagar Industries Ltd., Chief Vigilance Officer Dr. Keshab Nandy, Chief Finance Officer Mr. Collin Pal, Company Secretary Mr. Gaurav Thakur, Regional Sales Manager Mr. P. Meenakshi Sundaram and others met Mr. G. Sugumaran, Secretary, Federation for People’s Rights (FPR) on 23.02.2010 at Puducherry and given the following explanation in writing regarding the allegation of evasion of taxes to the tune of Rs Five crore by TI:

We introduce ourselves as one of the leading players in the Indian alcoholic beverage industry and manufactures of Indian Made Foreign Liquor (IMFL), with over 20 brands across a diverse range of price and product segments, and an ever growing, loyal customer base. TI markets its products across a large number of states in India, and is gradually assuming a pan-national presence. It also exports to Western Africa, the Middle East, the Far East and Caribbean countries.

Established in 1933 as The Maharashtra Sugar Mills Ltd. (MSM), TI was named after the revered freedom fighter Sri Bal Gangadhar Tilak and was one of Maharashtra’s first private sugar factories, which served the nation for over five decades. A change in government stance effected the transition of TI to the alcoholic beverage business. Today TI has established its distinct identity in IMFL business with steady growth and production of high quality liquor brands.

Tilaknagar Industries Ltd. (TI) has a strong basket of brands like Courrier Napoleon Brandy, Mansion House Brandy & Whisky, Senate Royale Whisky, Classic Whisky, Savoy Club range of products, etc, and the same are being sold all over India & abroad. TI also has a sizable sale in CSD having enlisted four of its brands. Mansion House French Brandy is the second fastest growing brand in the Indian liquor industry.

We would like to bring to your notice about the reports published in few newspapers, wherein you have been quoted as alleging that TI has manipulated its accounts and thereby caused a loss of about Rs. Five crores to the Government exchequer.

We would have appreciated it far better had you sought some/any clarification from us (TI) before being a part of such reports. Our CFO and the undersigned as Chief Vigilance Officer could have been more than willing and able to duly address all of your concerns and genuine queries.

Our Company (TI) has an impeccable record for over the past 75 years and has made remarkable contributions to industrial and social development of Maharashtra. Our former Chairman, Mr. D.M. Dahanukar was also awarded the Padma Shri in recognition of his outstanding contribution to society.

We have always been a law abiding Company and our business has been growing by leaps and bounds in the past few years. Our sales in Puducherry have grown to 202600 c/s in April 09 - Jan 10 from 178000 c/s in April 08 – Jan 09. Correspondingly our duty contribution to the state of Puducherry has also increased from Rs.1753 lac to Rs.1994 lac a growth of 14%.

We would like to express our willingness and eagerness in exploring this new facet, which you have alleged too.

We feel obliged to make the effort to at least try and give an explanation to such and other rumors being floated about.

Yours faithfully,

For Tilaknagar Industries Ltd.

Dr. Keshab Nandy,
Chief Vigilance Officer.

The city-based Federation for People’s Rights today urged the Puducherry Administration to order a CBI probe into alleged evasion of taxes to the tune of Rs five crore by a liquor manufacturing unit here.

In a memorandum submitted to Lt Governor Iqbal Singh, Federation Secretary G Sugumaran alleged that Puducherry Government fixed and collected 58 per cent sales tax for IMFL products and exempted four distilleries here from the sales tax following ‘murky’ deals. He said various companies were bottling liquor in these companies and were selling it in order to reap the benefit of the tax exemption. The government had imposed an additional excise duty from April 2007 to compensate the revenue loss because of the tax exemption, he pointed out.

The Mumbai-based Tilaknagar Industries Limited followed the category of declared price range as per case from Rs 850 to Rs 1,049 and paying Rs 522 for each case to the government, he claimed, adding if the company crossed over to the next category, it would have to pay excess additional excise duty to the government. Eventhough, it crossed over to the next slab of Rs 1,050 to Rs 1,349, it altered the accounts to maintain the Rs 850 to Rs 1,049 slab, thereby, cheating the government to the tune of Rs five crore from it’s five lakh cases, worth Rs 300 crore, sold in the last three years, he claimed.

UNI / 18.02.2010.

Federation for People’s Rights (FPR) Secretary G.Sugumaran submitted a memorandum to the Lt. Governor of Puducherry on 18.02.2010:

We would like to draw your kind attention on the fraud allegedly committed by the Mumbai based company Tilaknagar Industries Limited, which manufactures the liquor including Mansion House Brandy as brand name, an Indian Made Foreign Liquor (IMFL). More than 80 percent of the total volume, the said brand was distributed and sold in South India including Puducherry.

It is worth to note that the Govt. of Puducherry earns 70 % of the total revenue through various taxes imposed on sale of liquors. The said company swindled the Government money to the tune of about five crore rupees during the past three years.

The Government of Puducherry fixed and collects 58 percent sales tax for the IMFL products. The Government exempted four Distilleries running in Puducherry from the sales tax purely because of a murky deal. Various companies bottled the liquor in these companies and selling in order to reap the benefit of the said tax exemption. This leads

to a great revenue loss to the Government. In addition to the existing Excise Duty, an Additional Excise Duty was imposed, in order to compensate the loss incurred due to this exemption vide its order dated from 23rd April 2007 vide Government Notification No. 4703/DC(E)/SI/2007-II, issued by the Department of Revenue and Disaster Management.

The said Company followed the category of declared price range per case containing 8.64 / 9/12 bulk litres from Rs. 850 to Rs. 1049 as mentioned in the Government Notification. The company is paying Rs. 522 for each case for the brand Mansion House Brandy as per the above selected category to the Government. If the company crosses the next category it should pay excess Additional Excise Duty to the Government as per the said Notification.

In the intention to cheat the Government, the said company creates a new head as ‘Annual Turnover Profit’ in the cost card and selling the liquor. The company alters the accounts to maintain the above Rs. 850 to Rs. 1049 slab and getting back the excess money categorized as ‘Annual Turnover Profit’ from the Distributors and Wholesalers. By such manipulation it submits the accounts to Excise Department as if it is strictly following the slab of Rs. 850 to Rs. 1049.

Actually the company is selling the products exceeding the fixed slab Rs. 850 to Rs. 1049 by entering the next slab Rs. 1050 to 1349 as mentioned in the said Government Notification. If the company shows the next slab, it should pay Rs. 99 per case of product sold in Puducherry. Since three years after the issue of the said notification by the Government, this company has sold 5 lakh cases of products worth Rs. 300 crores. So, the company should pay Rs. 5 crores as Additional Excise Duty to the Government.

The company had cheated the Government by indulging in these fraudulent and unfair practices with intention to violate the law explicitly, which would surely cognizable under the penal offence. Puducherry Government is suffering a lot to mobilize fund to implement various public oriented schemes. In this context the above said company’s act of continuously committing this grave crime is a great betrayal to Public. Such unfair practice would only favours the liquor selling companies through various tax exemptions and its manipulation which would purely cause a huge revenue loss to the Exchequer.

We are also very much worried to hear the story of a single company which is cheating the Government to the tune of several crores of rupees. We expect your Excellency’s kind attention to probe the activities of other Liquor Companies also in Puducherry in this regard.

So, we humbly request your Excellency to order for a C.B.I. enquiry in the referred matter and initiate stringent criminal action against the company owners and others who were abetting to this crime by causing wrongful loss to the Government and thereby allowing to enjoy wrongful gain to the private players.

The Puducherry based Federation for People’s Rights today urged the administration to adopt a resoution in the next session of the Territorial Assembly urging the Centre to change the name of the Madras High Court as the High Court of Tamil Nadu and Puducherry.

In a statement here today, Federation Secretary G Sugumaran said the Centre recently announced to change the name of Madras High Court as the High Court of Chennai and was taking steps to bring in an act in the ensuing Parliament session. He said in 1996, the name of Madras city was changed to Chennai, but the name of the High Court remained unchanged and there was a demand to change the name of the High Court to Tamil Nadu High Court instead of the proposal of the Centre to name it as High Court of Chennai.

Mr Sugumaran said Puducherry comes under the direct control of the Madras High Court. Hence, the name of the Madras High Court be changed as the High court of Tamil Nadu and Puducherry, as was adopted in the case of naming Punjab High Court as Punjab and Haryana High Court when it’s jurisdiction has been extended to two states.

Mr Sugumaran said memorandums were sent to President Pratibha Patil, Prime Minister Manmohan Singh, Union Law Minister, Chief Justice of India, Chief Justice of the Madras High Court and Tamil Nadu Chief Minister M Karunanidhi.

UNI / 16.02.2010

Federation for People’s Rights (FPR), Secretary G. Sugumaran sent a memorandum to President of India Ms. Pratibha Patil, Prime Minister Dr. Manmohan Singh, Union Law Minister Mr.Veerapa Moily, Chief Justice of India Mr. K.G. Balakrishnan, Chief Justice of the Madras High Court Mr. H.L. Gokhale, Tamil Nadu Chief Minister M.Karunanidhi on 10.02.2010:

The Central Government recently announced to change the name of Madras High Court as High Court of Chennai and taking steps to enact an act in the ensuing Parliament session. In 1996 the name of Madras city was changed as Chennai. But unfortunately the High Court name remained unchanged and remained as High Court of Madras itself. The Lawyers community at that time demanded to change the name which ended in vain.

We point out that during the pre independence period three Chartered High Courts were formed in Kolkata, Mumbai and Madras. The British Government named these High Courts by the name of the cities itself. It is understandable that the names of these Courts are not changed even after independence. It is surprising that after the names of Bombay, Calcutta and Madras are changed as Mumbai, Kolkata, and Chennai respectively, the High Courts are continued to be called in the same name itself. Under this context, we welcome the move of the Union Government to change the names of High Courts despite of the fact that it should have been done long back.

We heard that there is a demand to change the name as Tamilnadu High Court instead of the proposed name. After naming the state as Tamilnadu the demand is just and logical. It is highly worthy at this juncture to remember the great patriot Sundaralingam who sacrificed his life to get the name ‘Tamilnadu.’

Puducherry as a Union Territory comes under the direct control of High Court of Madras. Puducherry have a unique identity and distinct culture with the profound impact of the French culture. Expressing the ambition of the Puducherry people we request your good office to name the High Court of Madras as High Court of Tamilnadu and Puducherry, as is being adopted in case of naming Punjab High Court as Punjab and Haryana High court, when its jurisdiction has been extends to two states.

To add muscle to our contention we would like to draw the logical precedence of the case of Punjab High court. It is known to one and all that the States Re-organisation Act, 1966, brought another State Haryana by carving out from Punjab which came into existence from November 1st, 1966. From the date of enforcement of the said Act, the High Court of Punjab was renamed as ‘the High Court of Punjab and Haryana’.

So, we request your good office to initiate appropriate necessary action in this regard to honour the people of Puducherry.

Federation for People’s Rights (FPR) organized a demonstration on 12.02.2010, at 10 am, near Swadesi Mill, Puducherry, pressing the Government to consider the Central Jail prisoners reasonable demands and end the on to death fast struggle of prisoners. The relatives of the Jail inmates participated in the demonstration in huge number. The demonstration was presided over by the FPR Secretary G.Sugumaran.

The prisoners are undergoing onto death struggle for the past 4 days at the Central Prison, Kalapet, Puducherry. The prisoner’s demands to provide pure drinking water, proper water supply for the latrines, cut shot the distance in the visitor’s interview room to speak and interact with the relatives closely, parole leave without discrimination and delay and premature release of lifers who have completed 7 years imprisonment.

Various political party and social organization leaders including Village Panchayat Presidents Coordinating Federation’s Vice President G.A.Jaganathan, Viduthalai Chiruthaigal Party’s Organising Secretary Su.Paavanan, Bahujan Samaj Party’s Organiser C.Murthy, All India Forward Bloc General Secretary U.Muthu, Lok Jana Sakthi Party’s President Puratchivendan, Manitha Neya Makkal Katchi Secretary M.A.Asraf @ Ragamathulla, Tamilnadu Muslim Munnetra Kazahagam President A.Abdul Rasak Khan, Vice President Abubakkar, Marxist Periyar Communist Party’s President Thirunavakarasu, Puducherry Students’ Federation Convener Sathish @ Saminathan, Makkal Vizhipunarchi Iyakkam Secretary Saravanan are participated in the demo and spoke. More than 200 people were attended the demonstration.

Puducherry, Feb 11 : The Federation for People’s Rights here today urged the administation to take immediate steps to bring to an end the fast by the prisoners.

In a statement here today, Federation Secretary G Sugumaran said the prisoners of the Central Prison were on a fast for the last three days and some of them were admitted to the Government General Hospital as their condition had deteriorated.

He questioned the administration that when the Tamil Nadu Government was taking steps to release the life convicts who had served seven years imprisonment, why was the Puducherry administration denying parole to the prisoners even after submitting all relevant papers.

He also urged the administration to constitute a committee of human rights activists to visit the prison to assess the situation.

UNI / 11.02.2010

Various organisation representatives of “Joint Action Committee Against the Introduction of GM Foods like Bt Brinjal” submitted a memorandum to His Excellency Lt. Governor’ s office on 09.02.2010 pressing not to allow Bt Brinjal. They also handed over the thousands of signatures obtained from the village people and farmers.

The Committee comprises with 13 organisations: Puduvai Ariviyal Iyakkam, Poovulakin Nanpargal, Sempadugai Nanneeragam, Confederation of Puducherry State Govt Employees, Phoenix Science Forum, Kalanjiyam Organic Farmers’ Association, Federation for People’s Rights (FPR), Puducherry, LIC Employees’ Union, Samam Makalir Suyasarbu Iyakkam, All India Kisan Sabha, Puducherry, Teachers’ Association, Puducherry, Centre for Ecology & Rural Development, Murpokku Ezhuthaalar Sangam.

Memorandum:

Your Excellency might be aware that the United Nations Organization have announced the year 2010 as the International Year of Biodiversity. But thousands of our traditional Brinjal varieties are facing severe danger of being becoming extinct due to the introduction of the genetically modified (GM) BT Brinjal by the Union Government, if it goes ahead with the approval of this GM crop.

We, the citizens and civil society organizations of Puducherry request the Union and State governments not to allow this extreme step which will completely erase the diversity of not only the Brinjal crop but other vegetables species like Potato, Tomato etc. which fall in the same family of Brinjal.

In BT Brinjal, a gene from the bacteria Bacillus Thuringeinsis (BT) which occur in the soil in trace quantities are extracted and introduced into the DNA of Brinjal where the BT toxin is introduced into the whole plant. This BT is known to be active against the major pest of Brinjal, the fruit bore worm but not against lots of other pests of the plant.

Already leading scientists like Dr.Pushpa Bhargava (former Director of the Central for Cellular Molecular Biology (CCMB, Hyderabad & Member of the Genetic Engineering Approval Committee), Dr.M.S.Swaminathan (MSSRF) etc have expressed that the BT Brinjal or any other GM foods should not be allowed to be introduced in India for lack of adequate and transparent testing by public sector laboratories.

Already states like Orissa, West Bengal, Madhya Pradesh, Chattisgarh, Bihar, Kerala have banned the crops in their respective states. Large number of biotechnologists and Agricultural Universities have come openly against this. Organisations like World Health Organisation (WHO) and many countries including many states in the US have not allowed introduction of GM crops. The impact of high doses of BT in the soil could also harm the soil bacteria, earthworms and other macro fauna and adequate studies have not been conducted in these aspects.

In this context, we the voluntary organizations in Puducherry request the Government of Puducherry and Government of India not to allow the introduction of BT Brinjal or for that matter any other GM food crops in our soil as India is one of the rare countries where the majority of vegetable and plant biodiversity in the world still exists.

In line with as many as 10 states have banned the entry of the genetically modified crop BT Brinjal in their respective states, we earnestly request His Excellency to ban the GM BT Brinjal in Puducherry also thereby protecting the interests of not only the farming community but also the population of Puducherry from the short term and long term ill-effects it could cause.

The Most Backward Class Caste Reservation Protection Committee (MBCRPC) would take out a procession and submit memorandam to Puducherry Lt Governor, Chief Minister and Social Welfare Minister urging them to protect the MBC reservation in the Union Territory on March one, Committee Convenor G Sugumaran said.

In a statement here today, he said a resolution to this effect was adopted at a meeting of the committee here.

Another resolution urged the administration to implement the recommendation of the BC Commission for providing 2.5 per cent reservation to Muslim Community forthwith.

Resolutions urging the administration to ignore the demand of a section not to provide reservation to the Muslims from the BC allocation, to effect any change in the reservation of MBC only after a due castewise survey and ignore the demand to include further castes in the MBC list, among others, were adopted in the meeting, he added.

UNI / 06.02.2010.

High Court Lawyers submitted a detailed memorandum to the Chief Justice of High Court of Madras on 03.02.2010 to replace the monthly Calendars with a new set of Calendars with court holidays and without any element of political tone or colour to restore the faith of common people in the independence of Judiciary. Senior Advocate P. Rathinam raised this issue and around 50 Lawyers of the High Court of Madras and Madurai Bench signed the memorandum.

Memorandum:

We the undersigned advocates are making this representation inviting the attention of the Hon’ble Chief Justice and the Hon’ble Judges of the High Court of Madras (including the Madurai Bench) to a vital aspect of preserving the independence of Judiciary.

1.    We are disturbed every day as the Rule of Law has been weakened by the growing and widening rule of gangs. We are aware that in a developing country the scope for political mismanagement is readily available as part of the semi feudal and semi colonial society. Even though the Constitution of India is well designed with the contribution of public spirited personalities and in particular Dr. B.R. Ambedkar, the same is not utilized to achieve the goal of the very Document.

2.    We are conscious that only with the tireless efforts the forces working to weaken the Rule of Law can be resisted successfully. We are making efforts to strengthen the movement to promote and strengthen Rule of Law.

3.    We are worried to experience the political activities in the last two decades and the same have gradually introduced unethical and unconstitutional approaches only to gain access to various institutions of the State. Now atleast a section of the law making bodies are having persons with criminal records and the same is considered by the opportunist to be a good qualification to lead such bodies. The basic values are getting eroded in the political activities. The competition and unhealthy rivalry in the political activities have reached a stage that only by offering cash to the voters their support in the election can be ensured. Unpleasant happenings are taking place in the circulation of currency to the voters as the Indian Currency notes carry the face of Gandhiji.

4.    We as the members of the profession are recollecting the contribution of Lawyers in every country in its freedom-struggle. Even most of such freedom fighters sacrificed not only their lives and properties but also the future of their legal heirs without any element of hesitation. They are all models to the society. But the present day happenings are shocking our conscience and that of the like minded people. We feel that there is no need to specify as the happenings are very much open and patent in our society.

5.    We start with the questioning of the unhealthy practice of exhibiting the monthly calendars with the photographs of the Chief Minister and such other political figures displayed in the court halls and in the offices of the courts. We are clear that such practice is not good for maintaining the Independence of Judiciary. It gives an impression as if Judiciary is an extension or somewhat subordinate to the executive.

6.    We have to place on record that the Constitution Makers were very much vigilant and clear in their understanding and approaches, while introducing Article 50 which reads as “Separation of Judiciary from executive:- The State shall take steps to separate the Judiciary from the executive in the Public Services of the State.”

7.    During pre-independence India there was a strong agitation that the judiciary should be separated from the executive and that agitation was based upon the assumption that unless they are separated, independence of judiciary at the lower level would be a mockery.

8.    We are very much worried and disturbed to experience the indiscipline     among a section of the law profession. There is no justification in criticizing others without looking at the happenings in the profession itself. Even the elections for the lawyers’ bodies are becoming a laughing stock. All kinds of corrupt practices are adapted by a section of the profession. We cannot hide and suppress the truth that unfair practices are getting strength as one section of the Judiciary is also maintaining corrupt practices. We have to admit the reality that the opportunists are maintaining a net work and they are able to keep control over the Institutions of the State. But the socially conscious people are keeping distance among themselves.

9.    But the ever increasing corruption and criminalization in the power centers will inevitably generate an atmosphere for the conscious people to get united only to protect the public interest. We hope the same is emerging in our society. We are confident that the strength of the conscious people will promote a better awareness among the people and the same will enable the Rule of Law to march forward. We will build a better Social Order as the Constitution Makers were dreaming.

10.    The High Court calendar can be taken as the model as it contains 12 months with the indication of High Courts’ holidays on a single sheet.

Hence we request the Hon’ble Chief Justice to take appropriate step to replace the monthly Calendars with a new set of Calendars with court holidays and without any element of political tone or colour in it at the earliest possible time to restore the faith of common people in the independence of Judiciary.

We also undertake to cooperate for such endeavors.