Do you remember the days when we used to rush to the nearest video parlor to get our movies on rented CDs? For those luckier among us, there were rewritable discs, and the company leading the way was MoserBaer.
It’s been five years since the company, renowned for its “Hello Happiness” tagline, closed its doors. Yet, the reasons behind the downfall of this once-prominent player in optical discs and digital storage services remain shrouded in mystery.
Some speculate that MoserBaer couldn’t adapt to the changing times, while others argue that financial missteps led to its demise. However, there’s another intriguing dimension to the company’s story: its involvement in the Coal Scam and its close connections to Kamal Nath, a prominent figure in the Congress party. Join us as we’ll delve into the rise and fall of MoserBaer, exploring the various factors that contributed to its ultimate downfall, including the less-discussed political ties that played a significant role in its fate.
From Time Recorders to manufacturing CDs and DVDs
The journey of MoserBaer kicked off in 1983, when an ambitious entrepreneur named Deepak Puri made a significant move from Calcutta to New Delhi. In the bustling capital, MoserBaer India found its roots, initially starting as a Time Recorder unit. It formed technical collaborations with Maruzen Corporation of Japan and MoserBaer Sumiswald of Switzerland, setting the stage for its growth.
By 1988, the company had already pivoted into the data storage industry, specializing in the production of 5.25-inch floppy diskettes. As technology evolved, Moser Baer adapted, and by 1993, it began manufacturing 3.5-inch floppy diskettes, commonly known as MFDs.
The late ’90s marked another pivotal moment as MoserBaer ventured into the production of recordable Compact Disks (CD-Rs) and recordable Digital Versatile Disks (DVD-Rs). This diversification showcased the company’s commitment to staying ahead in the rapidly changing tech landscape.
Fast forward to 2006, and MoserBaer had expanded its horizons even further. It ventured into the realms of Photovoltaic cells and home entertainment, broadening its portfolio beyond data storage. At its zenith, MoserBaer dominated the digital storage industry in India. Throughout the late ’90s, it stood as the sole major Indian manufacturer of magnetic and optical media data storage products, with a substantial 85 percent of its production earmarked for export.
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The Coal Scam connection that not many talk about
What really led to the downfall of MoserBaer, once a thriving player in the tech industry? While it’s commonly believed that the emergence of memory cards and external hard drives marked a challenging turning point for the company, the reality is more complex.
The turning point arrived on September 20, 2018, when the company faced a grim fate as it was ordered into liquidation due to its dire financial straits. A forensic audit of its finances, conducted on September 26, 2018, unveiled numerous irregularities in MoserBaer’s accounts, shedding light on deeper issues.
An intriguing facet of MoserBaer’s history is its connection to the infamous Coal Scam, a scandal that siphoned a staggering Rs. 1.86 lakh crores from the Indian exchequer, according to official figures. This scandal led to the Comptroller and Auditor General (CAG) indicting both central and state governments in the Coalgate controversy. In response, the Chhattisgarh High Court took action, revoking land allocations for four coal-based power plants in Raigarh and Janjgir districts.
Among the companies implicated was SKS Ispat, linked to Union Tourism Minister Subodh Kant Sahai’s brother, Sudhir Kant Sahai. The high court canceled land allotments to SKS Ispat in Raigarh district, drawing attention to the complex web of connections between businesses and politicians in India’s economic landscape.
MoserBaer, interestingly, had ventured into the energy sector by establishing its power plants in Janjgir district, adding another layer to its operations. MoserBaer Power & Infrastructure Ltd was incorporated in 2008 with the strategy to foray into thermal power and infrastructure. This diversification into energy marked a significant expansion from its original core business in digital storage. However, with the emergence of CoalGate scam, things went for a toss, literally.
The Kamal Nath angle
The plot thickens with the arrest of Ratul Puri, a former executive director of MoserBaer and the son of Deepak Puri, the company’s founder. Ratul Puri faced charges in a ₹354 crore bank fraud case, with allegations including criminal conspiracy, cheating, forgery, and corruption. His arrest on August 20, 2019, raised eyebrows and cast a shadow over the company’s legacy.
But that’s not the end of the story. Ratul Puri is also a central figure in a money laundering probe linked to the AgustaWestland VVIP choppers purchase scam. Although arrested in August 2019, he was later released on bail in December, adding further intrigue to his legal entanglements.
Meanwhile, Enforcement Directorate has taken another significant step in the ongoing investigation into a money laundering case linked to a Rs 354 crore bank fraud. Nitin Bhatnagar, a former relationship manager at the Bank of Singapore, was recently apprehended under the Prevention of Money Laundering Act (PMLA).
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The roots of this money laundering case trace back to an FIR filed by the Central Bureau of Investigation (CBI) in August 2019. The allegations revolve around MoserBaer India Ltd. (MBIL) and its promoters supposedly cheating and defrauding the Central Bank of India of Rs 354.51 crore. The case was initiated after the bank lodged a complaint with the CBI.
Both the CBI and the Enforcement Directorate have previously booked several individuals, including Ratul Puri, his parents Deepak and Nita Puri, and others, on charges of criminal conspiracy, cheating, forgery, and corruption. Ratul Puri, who served as the executive director of MBIL at the time, was arrested by the ED in 2019 and is currently out on bail.
What makes this narrative even more intriguing is the connection between the Puris, the family behind MoserBaer, and Kamal Nath, a prominent political figure within the Congress party. Is it mere coincidence that these influential families share ties, and could these connections have played a role in the limited media coverage of this complex saga? Could this be a reason as to why MoserBaer faced a humiliating end to its once flourishing enterprise?
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