Tuesday, December 30, 2008

Why Nagarjuna Finance Case Now?

The Andhra Pradesh Police have reopened the Nagarjuna Finance Limited case now. NFL raised deposits from the public and failed to repay them. There were rumors that the promoters siphoned off the money. It all happened some time in `1999 or 2000. Prima facie, it looks like a routine Indian style investigation. But, I think it is neither routine investigation nor the action of the government to safeguard the interests of the depositors. It is to target and arrest Nimesh Kampani, who happened to be one of the non-executive directors on the board of NFL then. Why only Kampani? Because he gave the much needed lifeline to the Eenadu group promoter Ramoji Rao, by investing a large sum of money in the company. The Congress government in AP is fighting a no holds barred battle against Ramoji Rao. It even stalled the proposal of the PE firm Blackstone to buy a stake in the Eenadu group. Unfortunately it is now the turn of Kampani to face the music.