After SATYAM-MAYTAS, it's HIRCO-HIRANANDANI

It's the scam season, no doubt... First came MADOFF that made-off with billions of $ of investor funds, then closer home it was SATYAM COMPUTERS being sought to be shortchanged by its founders currently holding 5.3% minority stake by exchanging their loss making businesses in lieu of huge cash in Satyam balance sheet. To hell with valuations, due diligence or even corporate governance.

.

After SATYAM-MAYTAS fiasco, here's another; Hiranandani (Builders) attempts to take co-investors for a ride by opting for a merger with loss making family business HIRCO Developments with its AIM listed outfit HIRCO. The investors are irked because the decision is taken without undertaking appropriate valuation of the target, eerily similar to the Satyam deal that fell through because of shareholder revolt. In the Satyam deal, the promoters of SATYAM COMPUTERS (later found to be holding less than 6% stake) had decided to buyout their family concern MAYTAS infrastructure and MAYTAS properties both real estate businesses heavily in debt by using $1.6 billion cash in SATYAM's balance sheet. Later all the independent directors in its Board had to tender resignations owning up moral responsibility for their tacit concurrence by remaining passive during the Board meeting at which the issue was hush hushed.

.

Why does the expression chutzpah come to my mind...?

.

The telco balls of brass

Here. Admire the telco chutzpah. Telcos getting back with a vengeance with 3G iPhone pricing that is nothing short of a rip off. Get ready to pay Rs 31,000 for the entry-level 8GB phone and Rs 36,100 for a 16 GB memory. Both Vodafone and Airtel will launch the iPhone on August 22 and early reports suggest that they would be able to sell over 100,000 phones in the next 12 months.

It is much cheaper in the US (because the telcos subsidize it) where the handset is available for $199 (Rs 8,358) plus $99 (Rs 4,158) as an annual contract with the carrier that has the exclusivity. In India however, neither company will offer a subsidy.

The telcos here flout all license conditions but will shamelessly cry for a level playing field when TRAI chose to open up open access internet telephony to ISPs that are technically resellers and not carriers. Our experience with Indian carriers has been one of abject apathy to overcharging despite their vast customer base. Unless TRAI tracks down areas where telcos gouge Indian customers and direct them to slash costs, they will never. Opening up internet telephony is the latest.

But tell me something. Isn’t there a recession that we’ve been bracing up until a few days back? Now I hear folks queuing up to buy iPhone at nearly 3x the price that it sells in the US. Have we turned incurable gadget freaks or is it that we have suddenly discovered a ton of data to download or that we get lost on our way home without a state of art GPS or will we die starved of entertainment feed from much touted direct connection to YouTube that the 3G avatar is expected to provide?

.