The Jain Family’s Shameful Legacy, From Money Laundering To Paid News & Biased Reporting; How Times of India’s Owners Have Corrupted the Media Industry & Betrayed Its Readership!

The Times of India, nicknamed “The Old Lady of Bori Bunder”, is the “newspaper of record” in India. It has been embroiled in a series of controversies that should have shaken its reputation to the core but has it?

The recent revelation that Samir Jain, vice chairman and managing director of Bennett Coleman Co Ltd (BCCL or the Times group), and his wife Meera Jain, a former director of BCCL, had concealed their status as promoters of two listed companies have raised serious concerns about their integrity and the transparency of their business practices.

Despite this, the Securities and Exchange Board of India (SEBI) has let the Jains off with a mere slap on the wrist, allowing them to pay a minor penalty and escape more severe consequences.

In two separate orders related to Camac Commercial Company Ltd (CCCL) and PNB Finance & Industries Ltd (PNBFIL), SEBI imposed a total penalty of Rs35.67 crore, including a penalty of Rs2.82 crore each on Samir Jain and Meera Jain. (The amount of fine levied is a bit sketchy as different figures are being reported in the media).

However, what needs to be noted here is that this meagre penalty is hardly commensurate with the magnitude of the Jains’ wrongdoing and raises serious questions about the efficacy of SEBI’s regulatory framework, considering that this is not the first time that such allegations have been made and found to be true!

The newspaper has been the subject of intense scrutiny and criticism in recent years, from allegations of paid news to accusations of blatant bias and money laundering.

But perhaps the most damning controversy surrounding The Times of India is the allegations of money laundering levelled against its owners, the Jain family.

 

The First!
In 2016, the Enforcement Directorate (ED) initiated an investigation into allegations of money laundering against the Jain family, who own The Times Group, the parent company of The Times of India.

The ED alleged that the Jain family had received illegal funds from a Mauritius-based company and that these funds had been laundered through a complex web of shell companies. The investigation revealed that the Jain family had amassed a vast fortune through illegal means, including kickbacks and bribes.

The Big Revelation!
In both the Camac Commercial Company Ltd (CCCL) and PNB Finance & Industries Ltd (PNBFIL) cases, the Securities and Exchange Board of India (SEBI) has uncovered a complex web of 19 entities connected through a maze of networks and associations. These entities held a majority of shares in eight companies, including CCCL and PNBFIL, with some holding shares beyond the legal limit of 75%.

In the case of CCCL, seven out of the 19 entities controlled the company’s affairs, while eight were in charge of PNBFIL. Yet, shockingly, the Jains were neither disclosed as promoters nor as persons in control of the management of these companies.

In the case of PNBFIL, SEBI’s order reveals that the company repeatedly made false disclosures in its quarterly shareholding patterns, claiming to have zero promoter shareholding and labelling individuals linked to the Jain family as public shareholders. This violation was committed on 24 occasions, which clearly demonstrates the deliberate non-compliance and repeated acts of malpractice committed by the company and its promoters.

SEBI’s investigation into the Jain family’s shareholding practices revealed that Samir Jain, his wife Meera Jain, and his late mother Indu Jain, held a stake in five of the eight companies under scrutiny, as well as in another company, Punjab Mercantile and Traders Ltd, indirectly. This is because Punjab Mercantile and Traders Ltd is a wholly-owned subsidiary of PNBFIL.

SEBI’s WTM explained that the shareholding structure was designed so that the majority of shares in each of these companies were held by the remaining incorporated entities. Meanwhile, the Jains held smaller quantities of shares directly with their family members. However, the combined shareholding of the Jains was always shown to be below 26% of the total shareholding in each of these companies.

This indicates that the Jains were attempting to conceal their actual level of control and influence in these entities, which is a deeply troubling and unethical practice.

Journalism, Reporting & Media For Sale!
This highlights the deceptive and unethical practices that the Jain family has been engaging in for years.
The fact that the Jains were able to conceal their status as promoters and project themselves as public shareholders in these two companies is a clear indication of their unethical business practices. By doing so, they were able to gain an unfair advantage over other shareholders and manipulate the market to their advantage.

One of the most significant controversies surrounding The Times of India is the issue of paid news. For years, there have been allegations that the newspaper accepts money from politicians and businesses in exchange for favourable coverage. This practice, which undermines the integrity of journalism, has been widely condemned by media watchdogs and ethical journalists.

Despite repeated denials by the newspaper’s management, evidence of paid news continues to surface. In some cases, reporters have been caught on camera admitting to accepting money in exchange for positive coverage. Such practices not only compromise the credibility of the newspaper but also undermine the public’s trust in the media as a whole.

In addition to the issue of paid news, The Times of India has also been accused of bias in its reporting. The newspaper has been accused of having a pro-government bias, with many critics arguing that it is too cozy with those in power. This has led to accusations of self-censorship and a lack of critical scrutiny of those in positions of authority.

Furthermore, the newspaper has been criticized for its sensationalist and tabloid-style reporting, which often prioritizes entertainment and celebrity news over serious issues. This has led to concerns that the newspaper is more interested in generating clicks and revenue than in fulfilling its journalistic responsibilities.

These allegations are particularly damning because they reveal that the Jain family, who owns one of India’s largest media conglomerates, have been involved in criminal activities. Such revelations raise serious questions about the integrity of The Times of India’s journalism and the potential influence of illicit money on the newspaper’s editorial stance.

SEBI, What A Neat Job!
SEBI’s decision to let the Jains off with a minor penalty sends the wrong message to the business community and undermines the credibility of the regulatory framework. It raises concerns about the extent to which powerful business leaders can flout the law with impunity and the need for stricter penalties and greater accountability for such actions.

SEBI’s lack of decisive action in this matter raises serious questions about the integrity of its regulatory framework and its commitment to upholding the rule of law

Repeat Offenders!
The Jain family’s continued flouting of the law and their blatant disregard for ethical business practices are a clear indication of their lack of integrity and moral fiber. They have repeatedly put their own interests above those of the public, and this has resulted in grave consequences for the companies they were involved in, as well as for the wider business community.

It is high time that the Jain family is held accountable for their actions. SEBI’s recent findings must be followed by swift and decisive action, with strong penalties imposed on those involved in these illegal activities. It is only through such action that we can hope to restore faith in the regulatory framework and ensure that the business community operates in an honest and transparent manner. Anything less would be a betrayal of the trust that the public places in our institutions.

The Last Bit, The Times of India’s reputation has been severely tarnished by a series of controversies, including allegations of paid news, bias, and money laundering. These issues highlight the need for greater transparency and accountability in the Indian media and the urgent need for ethical journalism that prioritizes the public interest over profit and personal gain.

The Jain family’s continued flouting of the law and their blatant disregard for ethical business practices are a clear indication of their lack of integrity and moral fiber. They have repeatedly put their own interests above those of the public, and this has resulted in grave consequences for the companies they were involved in, as well as for the wider business community.

The lenient penalty imposed by SEBI on Samir Jain and Meera Jain for concealing their status as promoters in two listed companies is a gross miscarriage of justice. It highlights the urgent need for greater transparency and accountability in business practices and stronger regulatory mechanisms to ensure that powerful business leaders are held accountable for their actions.