Thursday, 11 May 2023

And yet L.I.C of India doesn't pay arrears and dues to its resigning ex-employees!

SOURCE: https://economictimes.indiatimes.com/markets/stocks/news/lics-rs-10-lakh-crore-portfolio-273-stocks-11-stars-but-only-1-superstar/articleshow/100089054.cms

LIC's Rs 10 lakh crore-portfolio: 273 stocks, 11 stars, but only 1 superstar!

Nikhil Agarwal ETMarkets.comLast Updated: May 09, 2023, 09:37 AM IST

Synopsis

Life Insurance Corporation of India (LIC) has 273 listed stocks in its portfolio worth INR 10tn ($133bn). Its largest holding is Reliance Industries, but its biggest returns so far this year have come from tobacco and consumer goods company ITC, which has risen by almost 30%. Tech consultancy TCS is LIC’s third largest holding, followed by State Bank of India and ICICI Bank. Among the largest holdings that have given double-digit returns are L&T, ONGC, Tata Motors and Dr Reddy's Lab. LIC has reduced its stake in ITC but the company's valuation there has risen above INR 80,000 crore.

Read more at:
https://economictimes.indiatimes.com/markets/stocks/news/lics-rs-10-lakh-crore-portfolio-273-stocks-11-stars-but-only-1-superstar/articleshow/100089054.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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Our take on this report:

L.I.C of India is awash with funds.

And yet L.I.C of India doesn't pay arrears and dues to its resigning ex-employees!

Since 26 years!

Does anyone care about us at all?

The Government of India and the Finance Ministry of India definitely owe us an explanation!

They must ensure that we are given our dues with compound interest immediately.

"Patience has its rewards", as the old adage goes...

Will our patience pay off?

Only the Government and the Finance Ministry of India can answer!

Here's the feedback received for my first blog-post here:

Unknown commented on "L.I.C of India betrays its resigning employees’ Good Faith!"
Dec 24, 2015
Dear Madam
U r true. Lic is taking away the fundamental right of ex- employees.
If wage are revised and paid after a long period, this is fault of Lic not of the employees.
Either revise the pay timely or pay the renumeration to employees ( for which they have already worked so sincery.)
Gross injustice...... Can't believe how can lic do it..a organization of so repute....treating their staff this way......
Govt of India must intervene.
Plz.Be united all ex employees..... It is totally despotic and exploitative beside insulting. (Sic)

Tuesday, 31 January 2023

Symbiotic relationship? Worrying scenario!

Source: https://economictimes.indiatimes.com/news/india/view-india-cant-afford-to-get-the-adani-affair-wrong/articleshow/97469688.cms

View: India cannot afford to get the Adani affair wrong

By Mihir Sharma, BloombergLast Updated: Feb 01, 2023, 09:55 AM IST

It looks as though the Adani Group’s attempt to wrap itself in the Indian tricolor and see if criticism bounces off the flag may succeed. If the Indian government becomes a participant in the conglomerate’s effort, however, it would be doing itself and all Indians a great disservice.

In its rebuttal to short-seller Hindenburg Research’s claims of stock manipulation, tycoon Gautam Adani’s company made its strategy clear: Hindenburg’s accusations were, said Adani, “a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India.”

This is, of course, not true. Hindenburg Research is not part of a giant conspiracy to defame Adani, the Indian economy, or Prime Minister Narendra Modi. The company is a small, respected, New York-based shop of short-sellers that thinks it recognizes the signs of overvalued companies ripe for a selloff.
The possibility of profit is enough of a motive — you don’t have to reach for theories about a transnational network of anti-India bankers and journalists.

Yet there is one grain of truth in Adani’s claim, and it should worry Indian policymakers. Hindenburg’s report, which describes a web of offshore shell companies engaged in possible related-party transactions, refers to investigations by the relevant Indian regulator, the Securities and Exc ..

The short-sellers make a strong, and possibly overstated, claim about the possible outcome of a regulatory investigation: “Offshore shells and funds tied to the Adani Group comprise many of the largest “public” (i.e., non-promoter) holders of Adani stock, an issue that would subject the Adani companies to delisting were Indian securities regulator SEBI’s rules enforced.”

The report goes on to claim that the companies are still bein ..

It isn’t only Indian regulators who need to ensure they address these doubts head-on. This is a crucial test for India’s market economy. Policymakers in New Delhi still have extraordinary influence over the nuts and bolts of India’s economy, if in ways that are not immediately obvious to outsiders. State-run banks dominate lending to companies. The Life Insurance Corporation of India, a public sector insurer, is the most influential domestic equity investor. If it and other state-run institutions appear to come to Adani’s rescue now, without credible justification, who will believe in the future that India’s government doesn’t have a thumb on the stock-market scales?

I

India’s regulatory reputation is on the line. This is the one thing that has set us apart for three decades, since SEBI was first set up in response to our first big market manipulation scandal. It is something we as Indians should be proud of and should fight to defend....

Read the full article at:
https://economictimes.indiatimes.com/news/india/view-india-cant-afford-to-get-the-adani-affair-wrong/articleshow/97469688.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

SECTIONS

View: India cannot afford to get the Adani affair ..

Monday, 12 December 2022

Press Release by L.I.C of India regarding its Report on Embedded Value

Source: https://licindia.in/Home-(1)/Customer-Portal

14/07/2022 PANINDIA PRESS RELEASE

Mumbai, July 14, 2022: The Board of Directors of Life Insurance Corporation of India (“LIC”) approved the Report on Indian Embedded Value (IEV) as on March 31, 2022. Below are key highlights of IEV Report results. LIC has engaged M/s Milliman Advisors LLP for determining the IEV of the LIC of India as on March 31, 2022. Today, the Board of LIC, in its meeting, adopted the IEV Report of Milliman Advisors LLP pertaining to the IEV of LIC of India as on March 31, 2022. As mandated under the amended section 24 of LIC Act, 1956, Board of LIC in its meeting held on 8th January, 2022 had approved bifurcation of the single fund into separate Par and Non-Par funds and the effect of such bifurcation has been reflected in the Financials as at 31st March, 2022. As on March 31, 2022, the IEV of LIC of India has been determined to be Rs.5,41,492 Crore (Rs.5,414.9 Bn) as compared to Rs.95,605 Crore (Rs.956 Bn) as on March 31, 2021 and Rs.5,39,686 Crore (Rs.5,397 Bn) on September 30, 2021. The IEV as of September 30, 2021 was significantly higher than the IEV of March 2021 due to the bifurcation of fund that was carried out by LIC pursuant to changes in the LIC Act during the FY 2021-22. The Value of New Business (VNB) for year ended March 31, 2022 has been determined to be Rs 7,619 Crore (Rs.76.19 Bn) as compared to Rs.4,167 Crore (Rs.41.67 Bn) for the year ended March 31, 2021. Also, the VNB for the six-month period ended September 30, 2021 was Rs.1,583 Crore (Rs.15.83 Bn). The VNB margin, for the year ended March 31, 2022 is 15.1% as compared to VNB margin of 9.9% for the year ended March 31, 2021. The Annualised Premium Equivalent (APE) for year ended March 31, 2022 is Rs. 50,390 Crore (Rs.503.90 Bn). The APE for year ended March 31, 2021 was Rs.45,588 Crore (Rs.455.88 Bn) and the APE considered for arriving at VNB for period ended March 31, 2021 was Rs. 42,170 Crore (Rs. 421.70 Bn). Further for the period ended March 31, 2022, the APE of Individual business and Group business was Rs.35,572 Crore (Rs.3,55.72 Bn) and Rs.14,818 Crore (Rs.148.18 Bn) respectively. Therefore, the Individual Business accounted for 70.59% of APE and Group business accounted for 29.41% of APE. Also, within the individual business, the par business share on APE basis was 92.88%, while the remaining 7.12 % was from the non-par business. The ROEV (Return on embedded value) for March 21, 2022 is 11.9% as compared to 36.9% for March 2021. It is clarified that these calculations take into account the bifurcation impact of the split of single life fund into par and non-par fund during the FY 2021-22 Dated at Mumbai on July 14, 2022. For Further Information please contact: Executive Director (CC) LIC of India, Central Office, Mumbai. Email id: ed_cc@licindia.com Visit us at www.licindia.in We believe that the news contained in this release is of value to your readers. While we would thank you to publish it as soon as possible, we also readily recognize that the decision to do so rests entirely with you

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Does the above-mentioned Embedded Value of the Corporation as on 31.03.2022 consider the Repudiated Arrears and difference in Statutory Retirement Benefits payable (but not paid) to its resigning ex-employees since 1st August 1997? If not, it is factually incorrect.

In 2007, the Supreme Court had declared the Clause 3 1 b by which the arrears were illegally repudiated by the Corporation; to be 'ultra vires'.

By now all of us long-suffering ex-employees should have been paid our arrears with interest!

The Government, Finance Ministry and the Managing Board of Directors of L.I.C of India owe us all an explanation. As well as to all the stake-holders!

Kindly initiate and expedite the process of payments to all of us and right the wrongs that have been meted out to us since 25 years!

Thanks in eager anticipation.

Resigning ex-employees of L.I.C of India

Thursday, 10 November 2022

L.I.C of India's financial jugglery will put a magician to shame!

Source: https://www.businesstoday.in/markets/story/lic-plans-to-transfer-nearly-22-bn-to-revive-battered-stock-report-351159-2022-10-28

LIC plans to transfer nearly $22 bn to revive battered stock: Report

LIC plans to transfer 1.8 trillion Indian rupees ($21.83 billion), a sixth of the 11.57 trillion rupees lying in its non-participating fund, to its shareholders' fund, according to an official aware of the matter.

Reuters

Oct 28, 2022,
Updated Oct 28, 2022, 9:24 PM IST
Life Insurance Corp of India (LIC) is planning to transfer nearly $22 billion from policy holders' funds into a fund earmarked to pay dividends or issue bonus shares, two sources said on Friday, as the country's largest insurer aims to shore up both its own net worth and investor confidence.

The state-owned insurer listed on Indian stock exchanges in May, but its stock has since dropped by more than 35%, wiping off nearly 2.23 trillion Indian rupees in investor wealth.

LIC is now looking at steps to revive its share price, said a government official, who did not want to be named.

The company plans to transfer 1.8 trillion Indian rupees ($21.83 billion), a sixth of the 11.57 trillion rupees lying in its non-participating fund, to its shareholders' fund, according to an official aware of the matter.

Life insurance companies primarily sell two types of products: the first are 'participating policies' where profits are shared with customers and second are 'non-participating,' or 'non-par,' policies that have fixed returns. LIC parks the premium it collects from the latter in a non-participating fund.
Transferring some of that into the shareholders' fund is one way to shore up investor confidence as it would be an indicator of higher dividend payouts in the future, both the officials said.

The surplus in the non-participating fund is earmarked for shareholders and can be transferred to shareholders fund with approval from LIC's board, which is yet to be sought, they said.

The transfer, if concluded, would boost LIC's net worth by about 18 times from its current value of about 105 billion rupees and top the net worth chart among insurers, including SBI Life and HDFC Life, both the officials said.

LIC and finance ministry did not immediately respond to emails from Reuters seeking comment.

A bigger shareholder fund would draw the attention of new and existing investor as the amount would be used by LIC to transfer dividend or issue bonus shares in future, said Harvinder Singh, a partner at law firm DSK Legal.

LIC shares were priced at 949 a piece during listing but are currently trading below 600 rupees.

Seven of nine brokerages covering the stock have 'buy' or 'strong buy' rating, with the median price target of 840 rupees, according to Refinitiv data.
"The move would increase the book value per share and may help in improving the sentiment around LIC's shares, but could keep the upside limited," said Ankur Wahal, senior vice president at BOB Capital Markets. ($1 = 82.4450 Indian rupees)

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In light of the above-mentioned report, we, the long-suffering, resigning ex-employees of L.I.C of India would like to remind the Corporation of its legal obligation towards us too!
Kindly show the same financial dexterity and prudence in paying us our legally rightful dues, without much ado!
You owe us huge unaccounted for amounts (unaccounted by you in your financial statements!) payable as our wage revision arrears' and other allied statutory retirement benefits' differential amounts; since 1997!
The Government must prod the Corporation to pay us our dues as well as we have put in long years of sincere and loyal service to the Corporation before resigning for personal reasons. The Supreme Court is with the employees in this matter, as is evident by its ruling in 2007 that the Clause 3 I b by which the arrears were repudiated in each Charter since 1997, is Ultra Vires!
Yet the Corporation and the Government carry on with this illegal repudiation with impunity, flouting our nation's highest court's orders! Blissfully carrying on with Contempt of Court!
Shockingly, if this sorry state of affairs continues, as per the above-mentioned report, all the policy-holders of the Corporation may end up in our shoes, running from pillar to post to get their legally rightful dues; in the near future! God forbid!

Tuesday, 1 November 2022

Vigilance Week - L.I.C of India

In its message to all the policy-holders regarding observance of Vigilance Week, L.I.C of India states its commitment to ethics. It asks everyone to fight for rooting out corruption and take a pledge to that effect.

We, the long-suffering, resigning ex-employees of L.I.C of India request the Managing Board of Directors to take the same pledge more vigorously this year, as each year passes by without us even hearing (leave alone actually receiving) about payment of our arrears' dues which the Corporation has maliciously, illegally and unjustly repudiated!

NOT PAYING OUR LEGALLY RIGHTFUL DUES, IS CORRUPTION. IN CASE L.I.C OF INDIA DOESN'T KNOW!

EVEN NOT ACCOUNTING FOR THE REPUDIATED AMOUNTS, IS CORRUPTION AND A MALPRACTICE OF THE HIGHEST ORDER.

THUS THE CORPORATION AND THE GOVERNMENT MUST INDULGE IN SOME SERIOUS SOUL-SEARCHING AND TAKE EFFECTIVE STEPS TO STEM THE ROT...

Hopefully then, in the current Charter this humiliation won't be imposed on the hapless resigning employees!

In my opinion, it is not enough to just profess the COMMITMENT TO ETHICS without actually practising it. In the course of my RTI struggle to obtain information from LIC, it was amply proved that LIC has no ethics as far as its responsibility towards its resigning ex-employees is concerned. Consider the following points:

LIC didn't bother to reply to my registered letter for representation of my case for arrears payments, nor to my subsequent 22 emails sent for follow-up thereafter; for eight months!

LIC's CPIO(WZO) called me up on my mobile from the office number and intimidated me so that I could back off from my RTI case. He also requested me to treat his call as "off the record". He mocked me and challenged me to file a case against LIC boasting that I would surely lose the case and that the RTI case would also be closed within 3 months.

He lied in front of the IC that he had never spoken with me, to which I retorted that he was lying. He was dumbfounded and the IC reprimanded him to be transparent in his dealings in future.

LIC expects us to approach courts for our legally rightful dues, despite a Supreme Court ruling that declares Clause 3 of the Charter to be ultra vires. This clause repudiates the arrears payable to the resigning employees.

LIC didn't answer a majority of the 21 questions in my RTI appeal. Only three questions were answered incompletely.

LIC hasn't posted my RTI details on its website as is mandated by law.

LIC has wilfully, arbitrarily and illegally deprived its resigning employees of their arrears payments and difference in retirement benefits' payments for nearly 3 decades (from 1997, to be precise!).

LIC is heartless towards its ex-employees who have served it loyally and sincerely.

LIC has avoided paying TDS to the Central Exchequer by repudiation of our wage revision arrears since two decades, thus causing the Exchequer a whopping loss of crores of rupees!

My sincere request to L.I.C of India is to examine which of the following qualities does it possess to proclaim itself as ethical in our case:

Empathy and Ethos
Trustworthiness
Honor and Honesty
Integrity
Core values, Consideration and Conscience
Soul

If even one of these is missing, it needs to do an urgent soul-searching exercise and walk the talk!
If it is indeed ethical and non-corrupt, it will immediately reimburse to all of us, our legally rightful dues.

Sunday, 4 September 2022

Gratuity is a Constitutional Right, L.I.C of India!

Yesterday, I read a newspaper item in which it was reported that teachers of private schools will get Gratuity which had not been paid to them on retirement, w.r.t to those who had retired in 1997. They will get all their dues retrospectively from 1997 till date with interest as per current rates.

Private school teachers to get gratuity with effect from 1997

Dhananjay Mahapatra / TNN / Sep 1, 2022, 03:51 IST

https://timesofindia.indiatimes.com › india › articleshow

4 days ago — India News: The Supreme Court has upheld a 2009 law entitling private school teachers gratuity, retrospectively from 1997

Instantly I realized that the case of us resigning ex-employees of L.I.C of India is similar to that of those teachers!

We are now very hopeful that there is light at the end of the tunnel for us. Even L.I.C started illegally and arbitrarily repudiating the wage revision arrears' payment; as well as forfeited all difference in Statutory Benefits like Gratuity and Provident Fund, w.r.t us resigning ex-employees from 1997.

The Supreme Court's judgments to pay these payments falls on L.I.C's deaf ears, every Charter!

As the wise old adage goes: We can wake up those who are sleeping, but not those who are pretending to sleep!

Let's all unite and wake up the sleeping giant and hope that realization about its cruel acts dawns on L.I.C of India as well as the Government that is a willing party to this deprivation of our Constitutional Rights.

The Managing Board of Directors takes this same illegal decision of repudiation in every Charter since 1997 and the Finance Ministry blindly ratifies it, in utter, wilful 'Contempt of Court' manner.

In 2007, the Supreme Court had declared the Clause 3B ii as Ultra Vires!

That Clause was the one that mentioned about repudiation of wage revision arrears to the resigning ex-employees. The judgment of the Supreme Court clearly states that this decision is "over reach" of the Chairman of L.I.C of India. Do read the said judgment on this blog.

We publicly appeal fervently to the Supreme Court to be a harbinger of justice and equality for us as well.

It must immediately order L.I.C of India as well as all public sector insurance companies where this same scenario exists, to pay us our dues with interest as per current, cumulative interest rates.

Let this Azaadi ka Amrit Mahotsav be true Azaadi for us as well.

Freedom from Injustice!

SATYAMEVA JAYATE!

Monday, 15 August 2022

Our freedom is at stake! L.I.C of India

Just yesterday, India celebrated its 75th Anniversary of Independence from colonial rule. As all of us enthusiastically and proudly wished each other "Happy Independence Day", a thought struck me like a bolt from the blue.

We, the resigning ex-employees of L.I.C of India, illegally treated like 'bonded laborers' by our ex-employer are still not free from bondage.

Though we had never signed any contract or agreement that we would compulsorily work for 20 years with the Corporation or forfeit our hard-earned enhanced wages due to retrospective wage-revision, we have all been made to suffer the injustice and cruelty meted out to us by L.I.C of India which has been illegally repudiating the arrears of payment arising due to Wage Revision Charters (belatedly announced by it every 5 years!) since 1st August, 1997.

So we decry 25 years of injustice and discrimination. Silver Jubilee of high-handed, illegal and arbitrary acts by the Corporation!

Despite a Supreme Court judgment declaring that such discrimination between 2 classes of employees is not fair and asking L.I.C of India to pay such employees their arrears, the Corporation impudently defies it; making it liable for "Contempt of Court" action.

Even the Finance Ministry that ratifies this UNJUST AND ARBITRARY decision doesn't ask the Corporation about its impunity.

IN REPLY TO MY R.T.I APPEALS, L.I.C OF INDIA HAS ADMITTED THAT THERE IS NO REASON ON RECORD FOR REPUDIATING THE ARREARS.

THIS INJUSTICE IS CARRIED FORWARD IN EACH CHARTER SINCE 25 LONG YEARS!

TRULY, A SORRY STATE OF AFFAIRS!

Hope the Supreme Court steps in and directs L.I.C of India to pay all our rightful dues arising due to wage revision, including difference in P.F. and Gratuity, with interest; as well as compensation for mental torture and costs for litigation/R.T.I. appeals.

LIC betrays its resigning employees' Good Faith