Sai Baba's Kulwant hall guy



First we should read some history on this subject, we have put the news in a comprehensive order:

From: indianantisaibaba (Indianantisaibaba) on:

Sathya Sai Baba Discussion Club, message 21545

Date: 1/13/02 4:30 p.m.

Rai-vajpayee-sai baba

This is the itinerary of the corrupt trio for sb Delhi visit 1999. One has been arrested already by CBI for huge financial scams.

Others will follow soon.

Rai family, sai baba and Vajpayee are all partners in crime.

>>Below is extracted from Sainet for your information.
Sai Ram to all. As I said earlier, I am confirming the details of the itinerary of Swami pertaining to His visit to Delhi between March 11-4 1999

11th 9.00 A.M. arrival at New Delhi Airport.

9.30 A.M. arival at Rai's residence.

4.00 P.M. Darshan at Rai School.

4.30 P.M. Darshan at JLN Stadium.

12th 8.30 A.M. Darshan at Rai School.

9.00 A.M. Darshan at JLN Stadium.

9.30 to 10.30 A.M. Sai Centre inauguration.

4.00 P.M. Darshan at Rai School.

4.30 P.M. Darshan at JLN Stadium.

6.30 P.M. Divine Discourse .

13th 6.00 to 7.30 A.M Bal Vikas at Sai Centre.

Then morning and evening darshans like 12th.

14th only morning darshans.

Special darshan for as many sevaks as possible from 11. 30 A.M.

Leave Delhi for Bombay at around 1.00 P.M. Mr. Vinay Rai (son of Sh Kulwant Rai) is incharge of the entire show ( of course real incharge is Swami) and special invitees may have special darshans in his house.

Security and other traffic arrangements are like those done on the Republic Day. Lot of gun trotting commados can be seen as many VIPs will be present (including PM, President etc.) The capacity of JLN Stadium is about 0.12 million. The crowd is going to be much more than that. Of course this is nothing when you take into account Delhi's population which is over 10 million. Please pray everything should go on smoothly. I feel this is going to be the first stage of cleansing of Delhi which is the most polluted city (spiritually, envoironmentally and in every sense) I understand Swami has assured Shri Kulwant Rai, that hereafter, He plans to visit Delhi every year!

There is going to be a mobile team which will move accordingly to Swami's undisclosed and sudden deviated plans. <<<

From: indianantisaibaba (Indianantisaibaba) on:

Sathya Sai Baba Discussion Club, message 21566

Date: 1/13/02 8:56 p.m.

Re: Rai/Sai Baba/vajpayee criminal consp

Here is the CBI complaint from sai baba victims site referring to Kulwant Rai, sai baba trust and financial scam. The complaint was made in March 2001, and all the income tax and CBI investigations started after that.

>>>Sai Baba Central Trust members like Indulal Shah, (who is a Chartered accountant from Bombay and has been with Sai Baba for 40 years, Kulwant Rai , the Industrialist from Delhi, GK Raman, Managing director of Sundaram Finance, Hejmadi, and so many others are all aware of what has been happening for so many years, and all of them stand to gain and to profit from the Sai Baba trusts. <<<

That is why I am saying other top trust members will also follow soon, and the sai baba -vajpayee role in conspiracy will be investigated too.

From: indianantisaibaba (Indianantisaibaba) on:

Sathya Sai Baba Discussion Club, message 21565

Date: 1/13/02 8:44 p.m.

Re: Rai/Sai Baba/vajpayee criminal consp

Read you fool !! It is NOT some internet rumour. It is about the CBI and income tax investigating, Vinay Rai for several months, and finally raiding and arresting him yesterday.

>>>>IFCI cheated of Rs 44.75 cr, Usha India
chairman in CBI net

NEW DELHI, Aug 19: CBI has registered a case against Usha India Ltd Chairman Vinay Rai, Vice Chairman Anil Rai and two other top executives of the company for allegedly cheating the Industrial Finance Corporation of India (IFCI) of Rs 44.75 crore during 1997-2000 by misutilising the funds received from it. <<

>>Saturday November 24, 9:02 AM

CBI intensifies Usha Ispat investigation

The Central Bureau of Investigation (CBI) has intensified its investigation into the Usha Ispat (USIS.BO, news) group controlled by the Rais, reports The Economic Times. It is now looking into the books of the financial institutions which had extended loans to the group companies. A team of senior CBI members is at IDBI (IDBI.BO, news) `s CuffeParade office in this connection. It is the lead bank for the Usha group`s flagship company Usha Ispat.

In August, the CBI had registered cases against Usha India (USRCd.BO, news) chairman Vinay Rai and vice-chairman Anil Ray, accusing them of forgery and cheating the financial institutions. It registered the case pursuant to the raids conducted by the income-tax department on the Usha group companies in February this year.<<

>>Bunglings worth crores of rupees
CBI files 3 FIRs against Usha

NEW DELHI, Aug 22: CBI has claimed to have detected frauds worth crores of rupees by Chairman and Vice Chairman of Usha Group of Industries and some officials of Industrial Development Bank of India (IDBI), Industrial Finance Corporation of India (IDCI) and other financial institutes.

The agency in its three FIRs, filed recently in the special court, alleged that the Usha Group personnel had allegedly entered into a criminal conspiracy with certain bank officials and committed financial bunglings to the tune of nearly Rs 100 crore.

The FIR said that the Chairman and Vice Chairman of the Usha Group and other officials of the company had indulged in financial bunglings in Usha India Limited, Malvika Steel Limited and Usha Ispat Limited.

The three firs named Vinay Rai, Chairman of the three concerns, Anil Rai, Vice Chairman of all the three firms, M C Gupta, Managing Director of Usha India and Usha Ispat, S K Mittal, Managing Director of Malvika Steel, J R Gupta, Director Usha India, Suresh Gupta and Sohan Lal Garg (both middlemen) and certain officials of IFCI, IDBI and other financial institutes.

The agency sources said that money involved in the sacm could be running into few hundreds of crore which could be determined only after a thorough investigation. <<

All the finances for 250 fictitious companies, runiing into thousands of millions were given to Rai's business group . How ?
ONLY because pm vajpayee sanctioned it. And that is because of Sai Baba.

Rai is a forger, and sb influenced vajpayee to sanction money, because Rai is funding Vajpayee, and sb is in the whole dirty scam, that is why vajpayee has to defend sb in the CBI case, otherwise he himself will be caught.

Sai Baba's Kulwant hall guy arrested

From: aoclery (Tony O'Cleary) on:

Sathya Sai Baba Discussion Club, message 21518

Date: 01/12/02 9:04 p.m.

Vinay Rai, son of Kulwant Rai , and a billionaire in the Forbes list of top richest Indians, and a very close follower of Sai Baba, has been arrested by the CBI.

In a pre dawn swoop, CBI sleuths descended on the home of Vinay Rai yesterday and arrested him for financial scams involving Rupees 1000 millions! !

Please read this about Vinay Rai :

(Link not ok? Try here!)

"........The Massachusetts Institute of Technology graduate, who is also a follower of Sathya Sai Baba, has every reason to be enthusiastic about convergence. It has brought him global recognition. Thanks to the Rs 2,000-crore market capitalisation of his infotech company, Information Technologies India Ltd (ITIL), Rai was included in the 11 Indians in Forbes list of 300 richest people in the world. ......"



Singing the convergence song

Vinay Rai
Net worth: Rs 53.58 billion

The latest passion for this steel-to-telecom-to-many-other-things entrepreneur is convergence

In the beginning, there was steel. Then there was telecom. And now there is convergence. Vinay Rai of the New Delhi-based Usha group has dabbled in various businesses in the last two decades. And he's toyed with the idea of entering several others in recent times, including a newspaper on the Net (he gave up the idea). His latest passion is, of course, a word that belongs to the new economy – convergence, or the coming together of infotech, telecom and entertainment.

"We are the only group to have a leg in all convergence areas. Everyone is eyeing convergence, but we are a little ahead because we are a long-term player straddling all areas in this sector," Rai says.

The Massachusetts Institute of Technology graduate, who is also a follower of Sathya Sai Baba, has every reason to be enthusiastic about convergence. It has brought him global recognition. Thanks to the Rs 2,000-crore market capitalisation of his infotech company, Information Technologies India Ltd (ITIL), Rai was included in the 11 Indians in Forbes list of 300 richest people in the world. 

Ask Rai about it and he gives you a philosophical reply. "All these things don't bother me. I have always believed in destiny. There are thousand others who are more hard-working and who are much more intelligent. But it is all God's will."

Rai cannot stop talking about how he is going to build on its success. On the anvil is a national Internet service provider (ISP),, which he says should be up and about in another two-three months. The idea is to have about 20 portals and vortals under with a focus on almost all aspects that a Net user could be interested in. For this, Rai is pumping in between Rs 70 and Rs 80 crore into the venture.

Recently in an equity swap deal, the group acquired ISP services in eight cities (the six metros, Lucknow and Kanpur). The idea is to cover 200 cities by the end of the next year, he says.
Also on the anvil is an e-learning initiative. Rai knows his strengths as far as convergence is concerned. The company has significant experience in all the mobile platforms and wireless technologies. 

The group has also forayed into steel manufacture by launching two projects – Malvika Steel Ltd, a 0.85 million tonne steel plant in Jagdishpur, UP, and Usha Ispat, a 0.6 million tonne integrated steel plant at Redi, Maharashtra. Delays in the first venture landed Rai in considerable controversy. 

But he has sailed through the stormy times. Malvika Steel is finally going to commence pig iron production this year and construction steel will be rolled out from next March. Similarly, Usha Ispat, which already produces pig iron, is expected to commence production from December this year.

But is there a market for so much steel? Rai strongly believes there is. "Nothing can be constructed without steel," he argues.

Incidentally, he was not in the first lot that sallied forth into information technology. But ITIL has established him as a leading presence in mobile services. And Rai cannot stop talking about how he is going to build on its success. 




(Link not ok? Try here!)


Business News


CBI files FIR against Usha India officials

By A Correspondent

August 19: The Central Bureau of Investigation, has registered a case against chairman of Usha India Ltd Vinay Rai, and vice chairman Anil Rai and two other executives of the company for allegedly cheating the Industrial Finance Corporation of India of Rs 447.5 million during 1997-2000 by misutilising the funds received from it.

The FIR, which was registered by the Special Investigation Group of the investigating agency on 1 August, also named the company's MC Gupta, the company's managing director, JR Gupta, director, Suresh Gupta, Sohan Lal Garg and certain officials of IFCI.

The accused executives of Usha India, earlier known as Usha Rectifier Corporation Ltd, allegedly entered into a criminal conspiracy between themselves and some officials of IFCI and others with a view to causing a wrongful loss to IFCI and a corresponding wrongful gain to themselves, the FIR said.



CBI raids on Usha Group



(Links not ok? Try here!)

NEW DELHI, JAN. 12. In an early morning swoop, the CBI today carried out searches at 12 places, including the residential premises of the chairman of the Usha Group, Vinay Rai, for allegedly duping four financial institutions of about Rs. 100 crore.

The CBI in its FIRs has alleged that the Usha Group had floated nearly 250 fictitious companies and defrauded financial institutions.


From: indianantisaibaba (Indianantisaibaba) on:

Sathya Sai Baba Discussion Club, message 21521

Date: 1/12/02 11:01 p.m.

Re: sb's Kulwant hall guy arrested

The Rai family is Prime minister Vajpayee's link to Sai Baba. Rai family, here in Delhi, have financed Vajpayee for years, and all the Rai family are in sb trusts. Rai arranged the sb visit here in 1999, and Vajpayee was closely involved.

In Harisampath's CBI complaint on the sathyasaivictims site the Rai family is specifically mentioned in the scams about sb.

I hope many more sb trust members, Vajpayee and also sb is put in prison.

Already this news is making waves in India.

From: indianantisaibaba (Indianantisaibaba) on:

Sathya Sai Baba Discussion Club, message 21602

Date: 1/14/02 3:29 p.m.

Re: Rai-vajpayee-sai baba

Rai has been chargesheeted. In fact the investigations had been going on for 5-6 months.

For economic offences and financial scams, the arrest procedure in India is different. Rai had got anticipatory bail, which means he can be imprisoned only after trial.

I am sure that he will have "divine grace and protection" because otherwise the dishonourable Pm of India Vajpayee and the perverted corrupt Sai Baba may have to give their sath sang in prison.

But the noose is tighteing and everyone here in India know about the Rai-sb-vajpayee corruption corporation and also, you may remember that Sai Baba's pet prime minister Narasimha Rao was the first indian PM to be convicted for bribery and financial scams. Now it is Vajpayee's turn, because the avatar blesses all equally

Read this about Rai: (Link not ok? Try here!)
(Link not ok? Try here!)
(Link not ok? Try here!)

Any fool including yourself can see how Rai got such huge sums of money sanctioned for fictitious companies. And that is why Vajpayee is going out of the way to protect Sai Baba.

But due to the anti sai baba people constantly campaigning the CBI, the process has started and soon sai baba will be put in jail, along with vajpayee and other trust members.

From: indianantisaibaba (Indianantisaibaba) on:

Sathya Sai Baba Discussion Club, message 21603

Date: 1/14/02 3:51 p.m.

Re: Rai-vajpayee-sai baba

Vajpayee has already been long suspected in the multi billion dollar UTI scam, because his son in law was the one who "authorised" all the transactions.

Now that Vinay Rai's role is established, it is crystal clear who is really behind the scam- sai baba. who else are the delhi based power prokers with access to prime minister. Surely now it is clear that it is Rai family, and so obviously sai baba is the chief criminal. (Link not ok? Try here!)

PMO linked to UTI mess: Sena leader

By Our Special Correspondent

NEW DELHI, JULY 30. The Government today suffered the mortification of coming under fire from one of its important allies over the Unit Trust of India debacle during a short duration debate in the Rajya Sabha. The Shiv Sena came virtually close to naming the Prime Minister's household for influencing the investment decisions of the UTI, causing embarrassment to the treasury benches as its charges were energetically supported by the Congress and the Left.

Mr. Sanjay Nirupam, fielded by the Shiv Sena, created a stir by alleging that the jailed ex-UTI Chairman regularly called up influential people in Delhi, including highly-placed persons in the Prime Minister's Office. The list of Delhi-based mobile phone numbers made available to the CBI only strengthened the claims made by the former UTI chief, Mr. P. S. Subramanyam's lawyer that most murky investment decisions were taken on instructions from top officials and Delhi-based power brokers, he alleged.

Mr. Nirupam also alleged that after the lawyer's disclosure about pressure from Delhi, the CBI was being influenced to release Mr. Subramanyam from its custody.

He also demanded that all private placements made by the UTI between June 1999 and June 2000 be tabled in Parliament. A quarter of the 1,300 private placements made by the UTI during this period were in unregistered companies and about half of them were in companies whose rating was slipping by the day.

All these scams started after March 1999 when sai baba visited Delhi, stayed with Vinai Rai and met the Pm Vajpayee. All these investigations have started by the CBI from July august last year

From: delta_108 (Hari Sampath)

Date: Thu Dec 12, 2002 3:14 a.m.


Subject: SB devotee Kulwant Rai: great Indian robber

In the CBI complaint I gave against Sai baba and his org , in March 2001, Kulwant Rai was specifically mentioned. SB stays with the Rai family when visiting Delhi. The Rai family are big financiers of PM Vajpayee.

In Jan 2002, the Rais were raided and chargesheeted by the CBI on various corruption charges.

Here is a front page story in the Indian Express, leading Indian newspaper as part of a series on "great Indian robberies"

It starts with ..."A fleet of Mercedes cars litter the driveway of the sprawling bungalow in the heart of Lutyens' Delhi thatbelongs to Kulwant Rai, sons Vinay and Anil and their families.

Godman Sathya Sai Baba stays with them when he visits Delhi. Their friends are the who's who of Delhi's power circles..."

It is self explanatory how the corrupt Vajpayee and the Sai Baba coterie like the Rai family have been milking the system, stealing money by the billion, and the nexus is now splashed all over the front pages.

Hari Sampath



The Indian Express



Powered by friends, driven by defaults

Political clout plus dad in FI Board yield rich dividends. So what if son doesn’t pay back?

Navika Kumar

New Delhi, December 11: A fleet of Mercedes cars litter the driveway of the sprawling bungalow in the heart of Lutyens’ Delhi that belongs to Kulwant Rai, sons Vinay and Anil and their families. Godman Sathya Sai Baba stays with them when he visits Delhi. Their friends are the who’s who of Delhi’s power circles.

Here’s a reality check.

The Rais have CBI FIRs for cheating — making fake bills and siphoning funds — registered against them, face investigations for income-tax evasion and will not repay their humungous loans — or even the interest on them.


The Indian Express contacted the Rai house on 12, Aurangzeb Lane, New Delhi, on November 27 to speak to Group Chairman Vinay Rai. Staff at home said he was out of town and hence unavailable for comment. When asked if a questionnaire could be faxed to him, they said the fax machine was not working. Did Vinay Rai then have an e-mail address? The reply: ‘‘He does not have an e-mail ID.’’ Surprising for the chairman of Information Technologies, an IT company.

A questionnaire was then hand delivered at 12, Aurangzeb Lane. Attempts to reach Anil Rai and Vinay Rai followed. On December 10, Anil Rai’s office at Jeevan Tara building on Parliament Street, said Vinay Rai was the right person to speak to.

A visit to the Usha Bhawan at A-41 Mathura Road, Delhi, revealed Vinay Rai was not in office. His secretary confirmed all requests from The Indian Express had been passed on to Rai. And that the decision to respond - or not - was his.

It was only in 2000 that Vinay Rai was among the 11 Indians in the Forbes list of world’s 300 richest people with a personal net worth of Rs 5,338 crore. Yet, this was the year that two Rai companies - Malvika Steels and Usha Ispat - defaulted on loans of about Rs 2,400 crore.

The power of the Rais - who steadfastly refused to respond to faxes and requests for interview from the The Indian Express - is legendary.

The head of the family and Vinay Rai’s father, Kulwant Rai, was until recently on IDBI’s board, which sanctioned loans to the Rais while he was there. Top officials at IDBI deny any undue favour to the Group. ‘‘Kulwant Rai would not attend meetings when his group company loans were being discussed,’’ says a senior official, who doesn’t however deny that the fact played absolutely no role in the sanctions.

Today, there is little sign that the group’s corporate office on Mathura Road near the Delhi-Haryana border is a hub of business. Usha Bhawan houses an education centre called the Rai Foundation, which offers courses on everything from fashion technology to Vedic arts and sciences.

But the family’s political clout hasn’t waned. The Governing Council of the foundation boasts Oscar Fernandes and Subbarami Reddy of the Congress, Amar Singh of the Samajwadi Party, actress and former TDP MP Jaya Prada and the BJP’s Anjali Rai.

Then there’s P.K. Kaul, former Cabinet Secretary and Indian Ambassador to the US; K.S. Sarma, CEO of the Prasar Bharti, and Justice Eswara Prasad, former High Court judge.

The bankers have their work cut out for them. Steel. Telecom. Infotech. It once seemed like everything the Rais touched turned to gold. A list of who’s after them today: the CBI, the Income Tax department, banks, and even suppliers like French telecom-equipment giant Alcatel, still waiting for the money the Rais owe them for Koshika Telecom’s defunct cellular business.

Usha India, Usha Ispat, Malvika Steels, Usha Microprocess Controls, Information Technologies and Koshika Telecom seemed to be harbingers of the great leap outwards in the mid-1990s.

Today Malvika Steels is a defaulter to the tune of Rs 2,095 crore, Usha Ispat for another Rs 392 crore, and the Group is going through its worst possible credibility crisis.


So how did India’s best banks and financial institutions get stuck with the Rais?

Three years ago, the Rais had heady dreams of steel, telecom and convergence. They had a reputation for being go-getters and everything they said seemed to showcase their flair for big business. Mix that with their influence in the corridors of power and it isn’t surprising that names like IDBI, IFCI, SBI and UTI lined up to loan them money.

In 2000, another group company — Information Technologies India Ltd (ITIL) — became the engine driving the group’s growth through infotech, with a Rs 2,000-crore market capitalisation. In contrast, total investment in the company didn’t exceed Rs 70 crore. But that was during the great tech boom, when each ITIL share, issued at Rs 10, were being traded for a whopping Rs 2,250.

And then the tech bubble burst in 2001, and Rs 2,000 crore of ITIL went up in smoke. This was the starting point for trouble in other group companies.


‘‘We are still working on the one-time settlement scheme. It will come up shortly. RBI is also working on the guidelines on asset reconstruction companies after the Securitisation ordinance was promulgated. The guidelines are expected shortly’’

Vepa Kamesam,

Dy Governor, RBI

The NPA Act has come at a right time and would have a good impact on the recovery process. The banks and FIs would get more teeth in recovery drive. To start with, the Act is good and if some legislative problems crop up the Act can be amended accordingly.

K.N. Memani, Chairman,

Ernst & Young

When Koshika Telecom had problems paying licence fees of Rs 450 crore for their cellular services in Bihar, UP and Orissa, the Rais’ Mercedes had free access to the guarded precincts of Sanchar Bhawan, home to India’s telecommunications ministry (the licences were cancelled this year after a long legal battle). Koshika defaulted on its licence fees and by mid-2001 had three of its four licences cancelled. Malvika Steels, with a 0.85 million tonne capacity, began defaulting on its loans as did the 0.6-million tonne Usha Ispat project in Maharashtra.

In August 2000, when Kulwant Rai was on the board of IDBI, Koshika was sanctioned a loan worth Rs 100 crore when it had three of its four licences cancelled by the government for non-payment of licence fees. The fourth licence, which was running by default, because there was no other cellular operators in that part of Uttar Pradesh also owed money to the government. Yet IDBI sanctioned Rs 100 crore against a personal guarantee of Vinay Rai and pledging of shares in ITIL, which today trades at Rs 3.25 per share!


Given the cosiness that the Rais displayed in the past with their bankers, it’s not surprising that the FIs have still not declared the loans given to Koshika Telecom as NPAs. Koshika bagged cellular licences for four states — Uttar Pradesh (East and West), Bihar and Orissa — when the sector was opened up in 1996.

Today all the four licences stand terminated for non-payment of fees for over two years. The company had invested Rs 800 crore in this venture, of which nearly 30-40 per cent is expected to be from FIs. This amount — anything between Rs 250 crore and Rs 300 crore — is likely to show up as NPAs on bank balance sheets.

By mid-2001, financial institutions led by IFCI took over the flagship integrated steel project — Malvika Steel company — with its plant at Jagdishpur in Uttar Pradesh. Built over 752 acres of land, IFCI as the lead institution took over the project to recover its Rs 1,000 crore loans while IDBI also has substantial loans to the company. The case is presently pending with the Debt Recovery Tribunal (DRT).

Even here the company has had a bit of luck. The receiver appointed by the DRT to seal the assets of the company has in a report stated that it was physically impossible to take over the company which was spread over a 752-acre plot.

The receiver has explained that while there were labour groups demonstrating at the site, in other places where there was no boundary wall, villagers had brought the cows and sheep to graze. The receiver’s suggestion is that the DRT merely takeover the company’s inventory. And all this in October 2002, when the FIs took over the company in mid-2001 and even appointed their own directors on the Board in place of the Rais.

Last year the CBI raided the Group’s offices and residence of the Rais at Aurangzeb Lane, New Delhi. The suspicion was that the company used to take money from banks and financial institutions by showing fake bills for purchase of machinery from its own front companies. The tip-off to the CBI came from the IT department, which suspected that there was large scale evasion by the company.

A CBI spokesman told The Indian Express that according to the agency’s preliminary investigation, in the Rais’ supply chain, neither was material purchased nor payments made to any supplier. The CBI says that investigations are still on and hence no chargesheet has been made as yet.

In its FIRs, the CBI had alleged that the Usha Group had floated 250 fictitious companies and defrauded FIs like General Insurance Company, IDBI, IFCI and UTI. In the meantime, the Rais live free.