1/2012

I N S I D E

Multi-level Marketing– In Need of CognateRegulation

Mini Buses to Kick Off on Roads

Autos not Plying as per Meter

Revised Plan for BRTS Scheme

Inflated Power Bills Plague JaipurPradeep S Mehta, Secretary General

There is no definitive study to prove how dangerous is the radiationfrom mobile towers on health. However, in the recent past, some

newspapers in Jaipur conducted the study and raised certain pertinentquestions. Who is responsible for measuring the radiations from this webof mobile towers and if it is dangerous for human health then what arethe preventive measures?

It is shocking to note that enforcement wing of TelecommunicationMinistry responsible for checking mobile towers, does not even have the equipment tocheck the electro-magnetic radiations (EMR). There are directives for keeping theradiations within prescribed limits but only on paper. Mobile companies are free toinstall towers without caring for rules. There are 786 mobile towers in Jaipur city alone.

The mobile companies argue that radiations from the towers are within acceptablenorms but the fact is the towers have much greater capacity than required. One suggestionis, therefore, to decrease the capacity of towers and increase their numbers.

In India, mobile towers get so much of power input that a mobile phone gets morethan 100,000 times strong signal. In US, a mobile tower emits energy at 1-2 watt pertower but in India, it is in the range of 100 watt per transmitter. So, if a tower has 2-3transmitters, it emits 200 to 300 watts of energy. Mobile companies are not interested inreducing the power of these towers as it means extra expenditure in installing moretowers.

GS Shekhawat, Director, Telecommunications claims that there is no tower in thecity which emits radiations more than prescribed limits and there is provision for a fineof M5 lakh if radiations are more than the acceptable norms. This is because we haveone of the worst prescribed limits of 9.2 watt per square meter whereas in some countrieslike Austria, it is not more than 100 microwatt in residential areas.

An Inter-ministerial Committee has concluded that the exposure limit for the radiofrequency field (base station emissions) should be fixed at one-tenth of the existinglevels. Provisions for continuous online monitoring and display of radiation levels inmobile network frequency range at prominent places, and online data transfer to acentral server will need to be ensured. It also recommended to ban the towers nearhospitals, schools and densely populated areas and conduct a detailed study on ill-effectof radiations on health. But, no action has been taken on this report.

Environmentalists have been long maintaining a stand against such towers. An expertcommittee of Ministry of Environment & Forests says that the EMR is largely responsiblefor the declining numbers of sparrows. The panel suggested recognising EMR as a pollutantbecause of their possible effect on animals and birds.

India has no mechanism whatsoever to monitor the suspected harmful EMR fromthe mobile towers that dot skyline of every city and town and even villages. Localresidents in Jaipur have complained about facing health problems due to these towers.The condition of local residents living nearby the mobile towers was like staying in amicrowave oven, some suggested. While not exactly recognising and accepting the harmfuleffects of radiation, the Jaipur Municipal Corporation (JMC) razed to the ground threecell phone towers in C-Scheme.

Though there is no need to be alarmist over the matter, there is certainly a case fora detailed study on the health hazards of radiation from mobile towers and their solutionsin the interest of general consumers.

Risk of Mobile Tower Radiation

www.google.com

| 2 | City Matters • 1/2012

In the LimelightIn the LimelightIn the LimelightIn the LimelightIn the Limelight

Jaipur-based multi-level marketing (MLM) company, ‘GoldSukh’, has allegedly duped over 1.75 lakh investors of M200

crore. The company promised investors 27 time returns injust 15 months, on their deposits for buying gold. Company’swebsite has become non-functional after the news broke out.FIR has been lodged against the firm in the VidhayakpuriPolice Station in Jaipur.

It is also reported that a committee named Gold Sukh PiditSangharsh Samiti, has been formed seeking government’sintervention in the matter. Even before the dust could settleon the Gold Sukh scam, two more swindling cases byinvestment companies named ‘Swarna Yug’ and ‘Eves Miracle’have surfaced. Like Gold Sukh, these companies attractedinvestors promising huge profits in return for buying gold.

Rajasthan seems to be a safe haven for MLM companiesand scams. In another incident, Sindhi Camp police in Jaipurunearthed a racket of cheating by Pearl India Limited whichhad allured nearly three thousand investors in the name ofproviding land. They have been booked under Prize Chitsand Money Circulation Schemes (Banning) Act, 1978.

Police registered case against one more MLM companyTulip Global Private Ltd. Jaipur for duping over 30 lakhinvestors on the promise of providing high returns.

The Jaipur police also raided Swarna Labh Trade Linklimited, Aditya Cosmo India Ltd and other such MLM firms.

The Reserve Bank of India (RBI), too, had flashed a redsignal to banks in respect of MLM companies advising cautionin opening of accounts, etc. MLM involves a strategy wherebythe sales team earns not only for sales they generatethemselves, but also for the sales of others they recruit,creating a cascade of distributors with multiple levels ofcompensation. MLM has been variously referred to as pyramidselling, network and referral marketing.

For banking and non-banking financial services, RBI isthe regulator and for stock markets, the regulator is theSecurities and Exchange Board of India (SEBI). However, thereare certain companies that do not fall under the purview ofeither of these regulators and it is in such grey areas wherecompanies like Gold Sukh take advantage.

The state government, too, has been slow to react toMLM frauds. However, Kerala became the first state to setguidelines in September 2011 for MLM companies triggeredby the Tycoon Empire International scam of about M1000crore.

The Indian MLM market is worth M75,000 crore everyyear. There is no regulatory authority to oversee this trade.Out of greed and ignorance, people invest their hard earnedmoney only to be duped by the master minds sitting behindthese companies.

The absence of specific laws governing MLM businessesis likely to hound the prosecution in court rooms even thoughthe Rajasthan police has booked the directors of Gold Sukhand others in the case under Indian panel code for committing

Multi-level Marketing– In Need of Cognate Regulation

offence of fraud, cheating, criminal breach of trust andcriminal conspiracy which may prove tricky to be establishedin the criminal court.

Anyways, the authorities are now alert and the victimsare being encouraged to come forward with details to helpinvestigations. When similar frauds surfaced in the 80s, theCentral government enacted the Chit Fund Act, 1982regularising chit funds with certain riders and fixingresponsibilities of directors but no such responsibility can befixed in present case in the absence of law.

It is high time to enact safeguards for investors so thatthey are duped of their earnings by the fraudulent MLMcompanies.

The state government, too, has

been slow to react to MLM frauds.

However, Kerala became the first

state to set guidelines in

September 2011 for MLM

companies triggered by the Tycoon

Empire International scam of

about M1000 crore.

www.google.com

1/2012 • City Matters | 3 |

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JDA to Reconsider ‘Cycle Track’Jaipur’s first model

road proposed onBhawani Singh Roadmight see alterationin its design as theJaipur DevelopmentAuthority’s (JDA)Engineering Wing is planning to drop the‘cycle track’ – one of the most specialfeatures on this road.

After creating much hype on theconstruction of a dedicated cycle trackfor the first time in the city, the JDA isnow reconsidering it as this will cover alot of space. The road requires at leastsix lanes seeing the existing trafficcondition. However, the cycle track wasproposed after four lanes which cancreate congestion in future.

A cycle track of 1.5 metre wasproposed on the 100-feet wide roadconnecting Indira Circle to RambaghCircle. This was to include a footpath,footpath green buffer zone, and footoverbridge. (ToI, 20.03.12)

Mini Buses to Kick Off on RoadsAfter long wait,

the low floor buseskicked off on thecity roads. Thebuses have beenstarted by JaipurCity Transport

Services Limited and will connect old andnew city with railway station and othermain spots. It will prove beneficial tomany who commute on regular basis.

Initially more than 20 buses have beenstarted. The route will be from RailwayStation to Chandpole, Choti Chopar, BadiChaupar and then to Gangpole. Buses havebeen manufactured by Tata Motors withseating capacity of about 25 seats.

(RP & DB, 19.03.12)

Autos not Plying as per MeterAutos are

not plying as permeter in Jaipurcity – customersare forced to payalmost threetimes the fare.The government have came up with anotification on October 31, 2011 sayingall autos would henceforth run on meter.But there are scores of autorickshawsrunning without meter with some even

daring to tell the commuters that theywould not run on meter.

Most autos do not have meters orthey have faulty or defunct meters. Onthe other hand, the autorickshaw driversclaim innocence saying the passengersthemselves were not ready to pay bymeter as they fear the meters would befaulty.

It is a common thing for autorickshawdrivers to tell the commuters that theywould run on meters only if the distanceis more than 10 kms. In fact, it is the lackof will power on the part of districtadministration that led to failure of theinitiative. (RP, 03.03.12)

Revised Plan for BRTS Scheme

To ease traffic in the city, the JDA hassent a revised proposal of M680 crorefor Bus Rapid Transit System (BRTS) tothe Centre for the approval. As per therevised plan, corridors would not be builtand three-and-a-half metre lanes oneither side would be left for buses to ply.

Commuters will not be allowed toenter the priority lane and similarly busdrivers have to follow the rule. Theelevated road proposed under BRTS wasshelved after facing strong criticism thatit might cause damage to the heritagebuilding along the route. (DB, 20.03.12)

Garbage Collection Still on PaperFor proper

cleanliness of the citythe state governmentis banking upon theproposed door-to-door collection of thegarbage throughPublic-Private Partnership (PPP).However, the project announced manyyears ago is still on the paper.

After failed attempts in attractingprivate companies despite extending thedate for submission of bids, authoritiesare claiming that the process will getcompleted soon. Five companies fromMumbai, Gurgaon and Delhi havesubmitted their proposals. Once thetechnical bids are opened the financialbid will be done.

The JMC Mayor Jyoti Khandelwal tooasserted that once the system getsimplemented the whole problem ofgarbage in the city will be addressed.

(ToI, 15.02.12)

Cracking Whip on Illegal Parking

In order to streamline parkingproblem and curb illegal parking mafia,the State Transport Department is all setto crack the whip on all illegal parkinglots being operated in the city. TransportMinister Virendra Beniwal directed theJMC to take stern action against peopleoperating illegal parkings in the city.

The JDA Commissioner has beeninstructed to register an FIR against allsuch illegal parking operators. The actionhas been taken after regular complaintsof people that they are charged morefees. In many cases, people complainedthey were charged parking fees forcefullyeven at the places where there was noauthorised parking spaces.

Beniwal said that parking is a bigproblem in the city for which the stategovernment is developing parking slots atvarious places. New measures will restrictsuch practices in the city. (DNA, 28.03.12)

Fund Paucity Hits Drainage PlanThe city residents would continue to

face inconvenience due to water loggingand poor road conditions this monsoonseason, too, as the mini drainage planprepared by JDA has been hit by paucityof funds.

The JDA Engineer Wing has recentlydrawn M200 crore mini drainage planafter compiling a report submitted bydifferent zones. However, given at thepresent financial condition, the JDA willbe unable to take up the work.

The civic authorities are strugglinghard to have a proper drainage systemin the city since long, however, it alwayshit due to financial crises. In 2007, theJMC had drawn a drainage plan of M1,200crore for the city, which was sent to theCentral government to seek funds underthe Jawaharlal Nehru National UrbanRenewal Mission Scheme. (ToI, 26.03.12)

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City MattersCity MattersCity MattersCity MattersCity Matters is a quarterly newsletter published by Consumer Unity & Trust Society (CUTS), D-217, Bhaskar Marg, Bani Park, Jaipur 302016, India,Phone: 91.141.2282821, Fax: 91.141.2282485 Email: cuts@cuts.org, Web site: www.cuts-international.org, and printed by Jaipur Printers P. Ltd., Jaipur, India.

CUTS offices also at Kolkata, Chittorgarh and New Delhi (India); Lusaka (Zambia); Nairobi (Kenya); Hanoi (Vietnam); and Geneva (Switzerland).

Sources: DB: Dainik Bhaskar; DNA: Daily News and Analysis; IANS: Indo Asian News Service; RP: Rajasthan Patrika; ToI: Times of India

Inflated Power Bills Plague JaipurResidents of a number of localities

in the city are faced with problems ofinflated electricity bills. People ofcolonies including Shastri Nagar, PratapNagar, Jhotwara, Bhankrota, Amer,Murlipura, Vishwakarma, Vaishali Nagarand other areas have complained thattheir electricity bills were inflated andthe units which had not been consumedhave been added to their bills.

R-Infra Shortlisted for MetroReliance Infrastructure Ltd (R-Infra) has been

qualified for the first phase of the Jaipur Metro Railproject along with three other bidders. R-Infra iscurrently implementing three metro rail projects on abuild-operate-transfer basis in the country at a totalproject cost of about M16,500 crore. R-Infra alsoprovides engineering, procurement and constructionservices for developing power and road projects andcurrently has orders worth about M24,325 crore.

(www.livemint.com, 20.01.12)

Metro to Complete by June 2013The Jaipur Metro Rail Corporation (JMRC) claimed

to complete the project within set deadline of June2013. Managing Director Kuldeep Ranka said the JMRChas put in all efforts to complete the project withinthe set deadline. He said civil works of the Metroprojects in Mumbai and Kolkata are running a bitbehind the schedule. But in Jaipur, the project is onthe right track as land required is being acquired wellwithin the time frame. Sitapura to Ambabari will be thesecond phase.

(www.winnersdelhinews.com, 24.02.12)

Chandpole Metro Platform ReadyConstruction of first platform of underground three

stories metro station at Chandpole is complete. Thisplatform is made by Dyefrom wall technique. First partof station that is ticket window area will be constructedin three stories and its platform area in two stories.After coming metro train on elevated track from SindhiCamp to Janana Hospital, it will enter undergroundtunnel from Police line. When the track will beconstructed from Chandpole to Badi Chaupar then thistunnel will be constructed towards Badi Chaupar. Aftercompleting the construction of station till December2012, traffic at Chandpole area will come in flow.

(http://jaipur.co, 26.02.12)

consumers and asked them to depositthe ‘faulty’ bills without verifying details.

Interestingly, the officials of the PowerDepartment tried to shift the blame ofincreased electricity bills on consumers,saying in many cases consumersnegotiate with the meter readers to keeptheir bills deflated and by the end of thefinancial year, when the readers werechanged, they got correct bills.

(DB, 24.03.12)

Ministry Clears Jaipur MetroAt a high-level meeting between JMRC and the Union Urban

Ministry, the latter cleared the expansion of Phase 1 of the metroproject from Chandpole to Badi Chaupar. The corporation has beenassured of a financial back up of M600 crore to take the metro toBadi Chaupar. The Centre and the state will share the funding ofproject and each will retain equity in the project. Around 56 percentfund will be raised through loans which will be carried out througha separate process. There will also be a share of central taxes tofund the project. (www.projectsinfo.in, 27.02.12)

Mott MacDonald appointed on MetroMott MacDonald, the leading global management, engineering

and development consultancy, has been appointed by the JMRCas technical and general consultant for the ongoing Jaipur metroproject in India. The US$2.2bn, 35km long metro project willcomprise of two corridors, north to south and east to west and isa combination of both underground and elevated tacks. The metrois being delivered to ease traffic congestion, reduce travel timeand reduce carbon emissions in the city. (www.rail.co.04.03.12)

Jaipur Metro to Solve Land RowThe Jaipur Metro project is sure of overcoming land acquisitionhurdle for Ram Nagar station and completing the Mansarovar toChandpol stretch on time, i.e. June 2013. Newly-appointed JaipurMetro CMD Nihal Chand Goyal came up with an idea to avoid adelay in construction of Metro works, making his first inspectionof the sites. He asked the officials to continue the constructionworks and acquire land to develop the Metro track near RamNagar station where around 12 houses at Ved Varika Colony havestopped the progress. (DNA, 11.04.12)

Metro Updates

E-Mitra and localelectricity officeswere crowded byresidents withcomplaints of inflatedbills and the officialsin the AccountsDepartment had noanswer to their

problem. The department officials wereunable to resolve the complaints of