General Affairs
Assembly election 2018: Counting of votes tomorrow in Meghalaya, Tripura, Nagaland
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The results of the high-stakes Assembly election for Meghalaya, Nagaland and Tripura will be out tomorrow. The counting will begin at 8 am in all three states amid tight security.
Exit polls have predicted major gains for BJP in the key north-eastern states. The predictions have cast a gloom on the Congress, as the popularity of the grand old party among voters seem to be fast diminishing.
The BJP, which has emerged as a strong contender in the three states, is likely to overthrow the left government in Tripura and will also make its presence felt in Meghalaya and Nagaland.
The Congress has been ruling Meghalaya for over a decade while the Naga People's Front (NFP) has been in power in Nagaland since 2003. NFP was on the back foot briefly in 2008 after President's rule was imposed in Nagaland.
With renewed enthusiasm from its victory in Assam, Manipur and Arunachal Pradesh, the BJP is leaving no stone unturned to make a strong presence in the three states.
HERE'S WHAT YOU NEED TO KNOW:
Tripura went to polls on February 18, elections were held in Nagaland and Meghalaya on February 27. Although the three states have 60 seats, elections were held for 59 seats in each of them.
Over 50 per cent voters turned up for polling in Meghalaya. While there 68 per cent voter turnout in Nagaland, Tripura saw 90.58 per cent voter turnout.
While a CPI (M) candidate died in Tripura, a Nationalist Congress Party (NCP) candidate was killed in Meghalaya, which resulted in countermanding of the polls in one seat in each of the states. In Nagaland, Nationalist Democratic Progressive Party (NDDP) chief Neiphiu Rio has been declared elected unopposed.
In Meghalaya, the Congress fielded 59 candidates, while the BJP put up nominees in 47 constituencies. For the first time, Meghalaya Chief Minister Mukul Sangma is contesting from two seats. In Nagaland, the BJP has joined hands with the NDPP that was floated by former chief minister Neiphiu Rio. The NDPP is contesting on 40 seats and the saffron party on 20.
The Congress, which has given three chief ministers to Nagaland since the state's inception in 1963, is contesting only in 18 seats, two less than the BJP.
"Adequate security measures have been made for the counting centres.
Counting halls were also ready. General observers and police observers were appointed for all the counting halls," Additional Chief Electoral Officer of Tripura Tapas Ray said.
In Nagaland, 349 tables in 17 centres across the state would be set up for counting tomorrow, the Chief Electoral Officer (CEO), Abhijit Sinha, said.
Votes would be counted in presence of the candidates and agents under the supervision of the respective district returning officers and assistant returning officers, state Additional CEO N Moa Aier said.
Meghalaya Chief Electoral Officer F R Kharkongor said a three-tier security arrangement has been made at all the 13 counting centres and 11 companies of Central Armed Police Forces (CAPF) have been deployed here for the counting process.
Exit polls have predicted major gains for BJP in the key north-eastern states. The predictions have cast a gloom on the Congress, as the popularity of the grand old party among voters seem to be fast diminishing.
The BJP, which has emerged as a strong contender in the three states, is likely to overthrow the left government in Tripura and will also make its presence felt in Meghalaya and Nagaland.
The Congress has been ruling Meghalaya for over a decade while the Naga People's Front (NFP) has been in power in Nagaland since 2003. NFP was on the back foot briefly in 2008 after President's rule was imposed in Nagaland.
With renewed enthusiasm from its victory in Assam, Manipur and Arunachal Pradesh, the BJP is leaving no stone unturned to make a strong presence in the three states.
HERE'S WHAT YOU NEED TO KNOW:
Tripura went to polls on February 18, elections were held in Nagaland and Meghalaya on February 27. Although the three states have 60 seats, elections were held for 59 seats in each of them.
Over 50 per cent voters turned up for polling in Meghalaya. While there 68 per cent voter turnout in Nagaland, Tripura saw 90.58 per cent voter turnout.
While a CPI (M) candidate died in Tripura, a Nationalist Congress Party (NCP) candidate was killed in Meghalaya, which resulted in countermanding of the polls in one seat in each of the states. In Nagaland, Nationalist Democratic Progressive Party (NDDP) chief Neiphiu Rio has been declared elected unopposed.
In Meghalaya, the Congress fielded 59 candidates, while the BJP put up nominees in 47 constituencies. For the first time, Meghalaya Chief Minister Mukul Sangma is contesting from two seats. In Nagaland, the BJP has joined hands with the NDPP that was floated by former chief minister Neiphiu Rio. The NDPP is contesting on 40 seats and the saffron party on 20.
The Congress, which has given three chief ministers to Nagaland since the state's inception in 1963, is contesting only in 18 seats, two less than the BJP.
"Adequate security measures have been made for the counting centres.
Counting halls were also ready. General observers and police observers were appointed for all the counting halls," Additional Chief Electoral Officer of Tripura Tapas Ray said.
In Nagaland, 349 tables in 17 centres across the state would be set up for counting tomorrow, the Chief Electoral Officer (CEO), Abhijit Sinha, said.
Votes would be counted in presence of the candidates and agents under the supervision of the respective district returning officers and assistant returning officers, state Additional CEO N Moa Aier said.
Meghalaya Chief Electoral Officer F R Kharkongor said a three-tier security arrangement has been made at all the 13 counting centres and 11 companies of Central Armed Police Forces (CAPF) have been deployed here for the counting process.
Under Economic Offenders Bill, special courts will handle cases over Rs 100 crore
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The Cabinet cleared the Fugitive Economic Offenders Bill, 2018 to end the political trauma of loot and scoot by economic fraudsters caused to governments.
The Government, hit by Nirav Modi's great escape after defrauding Punjab National Bank, has been desperately trying to change the narrative scripted by the Opposition that Prime Minister Narendra Modi's Government has not just failed to curb corruption but it has abetted graft and helped the corrupt flee the country.
Interestingly the bill targets future Nirav Modis and Vijay Mallyas. Its provisions wouldn't apply to the two fraudsters who owe Indian banks in excess of Rs 22,000 crore.
The bill provides for the creation of special courts (under the Prevention of Money Laundering Act, 2002) to handle economic offences committed by someone who has fled once legal proceedings against him/her are started or in anticipation of action.
The courts will handle cases where the offence value is over Rs 100 crore.
SPECIAL COURTS TO DECLARE INDIVIDUAL A FUGITIVE
Once an application is put forward before the special court to declare an individual a fugitive economic offender, the process to attach that person's property will commence.
The special court will issue a notice to the individual alleged to be a fugitive economic offender. If the offender refused to respond to the notices, the court can declare him a fugitive.
Under the bill, a fugitive economic offender will be a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution.
OFFENDER WILL LOSE LEGAL RIGHTS OVER PROPERTY
Union Finance Minister Arun Jaitley explained, "Present laws currently allow only confiscation of offenders' property which is evaluated as proceeds of a crime. But under the new law confiscation of other property belonging to such offender in India and abroad, including benami property will be provided."
The bill also lays down disentitling the fugitive economic offender from defending any civil claim. This means that once the special court declares him a fugitive, he will lose legal rights over the confiscated property.
This is a changeover the current law does not allow but only until a court has settled the matter and the offender has been found guilty.
In case of an offender being declared a fugitive, an administrator will be appointed to manage and dispose of the confiscated property under the Act.
However, if at any point of time in the course of the proceeding prior to the declaration, the alleged offender returns to India and submits to the appropriate jurisdictional court, proceedings under the proposed Act would cease by law.
BILL WIL CHECK RISING ECONOMIC OFFENCES
A corporate ministry source clarified that all necessary constitutional safeguards will be given in terms of providing a hearing to the person through counsel, allowing him time to file a reply, serving a notice of summons to him, whether in India or abroad and appeal to the High Court.
The bill includes hundreds of economic offences including bank frauds and counterfeiting as scheduled offences. A scheduled offence refers to a list of economic offences contained in the schedule to this bill.
The rationale behind the bill is to check the trend of rising instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings.
The absence of such offenders from Indian courts has several deleterious consequences - first, it hampers investigation in criminal cases; second, it wastes precious time of courts of law; third, non-repayment of bank loans thereby worsening the financial health of the banking sector in India.
Government sources say existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem.
The non-conviction-based asset confiscation for corruption-related cases is enabled under provisions of United Nations Convention against Corruption (ratified by India in 2011).
In his 2017-18 Budget speech, Jaitley had stated that the government was considering introducing legislative changes or even a new law to confiscate assets of such absconders till they submit to the jurisdiction of the appropriate legal forum.
The Government, hit by Nirav Modi's great escape after defrauding Punjab National Bank, has been desperately trying to change the narrative scripted by the Opposition that Prime Minister Narendra Modi's Government has not just failed to curb corruption but it has abetted graft and helped the corrupt flee the country.
Interestingly the bill targets future Nirav Modis and Vijay Mallyas. Its provisions wouldn't apply to the two fraudsters who owe Indian banks in excess of Rs 22,000 crore.
The bill provides for the creation of special courts (under the Prevention of Money Laundering Act, 2002) to handle economic offences committed by someone who has fled once legal proceedings against him/her are started or in anticipation of action.
The courts will handle cases where the offence value is over Rs 100 crore.
SPECIAL COURTS TO DECLARE INDIVIDUAL A FUGITIVE
Once an application is put forward before the special court to declare an individual a fugitive economic offender, the process to attach that person's property will commence.
The special court will issue a notice to the individual alleged to be a fugitive economic offender. If the offender refused to respond to the notices, the court can declare him a fugitive.
Under the bill, a fugitive economic offender will be a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution.
OFFENDER WILL LOSE LEGAL RIGHTS OVER PROPERTY
Union Finance Minister Arun Jaitley explained, "Present laws currently allow only confiscation of offenders' property which is evaluated as proceeds of a crime. But under the new law confiscation of other property belonging to such offender in India and abroad, including benami property will be provided."
The bill also lays down disentitling the fugitive economic offender from defending any civil claim. This means that once the special court declares him a fugitive, he will lose legal rights over the confiscated property.
This is a changeover the current law does not allow but only until a court has settled the matter and the offender has been found guilty.
In case of an offender being declared a fugitive, an administrator will be appointed to manage and dispose of the confiscated property under the Act.
However, if at any point of time in the course of the proceeding prior to the declaration, the alleged offender returns to India and submits to the appropriate jurisdictional court, proceedings under the proposed Act would cease by law.
BILL WIL CHECK RISING ECONOMIC OFFENCES
A corporate ministry source clarified that all necessary constitutional safeguards will be given in terms of providing a hearing to the person through counsel, allowing him time to file a reply, serving a notice of summons to him, whether in India or abroad and appeal to the High Court.
The bill includes hundreds of economic offences including bank frauds and counterfeiting as scheduled offences. A scheduled offence refers to a list of economic offences contained in the schedule to this bill.
The rationale behind the bill is to check the trend of rising instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings.
The absence of such offenders from Indian courts has several deleterious consequences - first, it hampers investigation in criminal cases; second, it wastes precious time of courts of law; third, non-repayment of bank loans thereby worsening the financial health of the banking sector in India.
Government sources say existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem.
The non-conviction-based asset confiscation for corruption-related cases is enabled under provisions of United Nations Convention against Corruption (ratified by India in 2011).
In his 2017-18 Budget speech, Jaitley had stated that the government was considering introducing legislative changes or even a new law to confiscate assets of such absconders till they submit to the jurisdiction of the appropriate legal forum.
12 Maoists killed in Chhattisgarh encounter, top leader among those gunned down
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In a massive success to security forces, a joint team of Telangana police and Chhattisgarh police personnel gunned down 12 Maoists today.
Among those killed were 6 women members and Telangana state Maoist secretary Haribabu alias Jagan.
The identity of the others was not immediately known, but security agencies believe top outfit leaders could be among them, officials said.
The encounter took place in the deep forests spread over Chhattisgarh's Bijapur district and Telangana's Bhadadri Kothagudem district.
Speaking to India Today, Bijapur SP confirmed the encounter and said one jawan, who was part of the police party, was also injured and an evacuation process is on.
Senior police officials of Telangana were trying to bring the security force party back to a safe location as the encounter site is known as a Maoist den.
While speaking with India Today, a top state intelligence officer also confirmed the encounter and said the party had first recovered 10 bodies of red rebels and further search operations were on.
Senior police officials of Telangana were monitoring the encounter and trying to bring back the security force party back to a safe location as the encounter site is known as a Maoist den.
A huge cache of arms and ammunition including two AK-47s, 4 Insas and one SLR rifles were recovered from the spot, which hints at the presence of big Maoist commanders at the encounter site. The dead were being identified.
Meanwhile, Revolutionary Writers Association member Varavara Rao termed the encounter as fake and demanded a judicial probe into it.
Among those killed were 6 women members and Telangana state Maoist secretary Haribabu alias Jagan.
The identity of the others was not immediately known, but security agencies believe top outfit leaders could be among them, officials said.
The encounter took place in the deep forests spread over Chhattisgarh's Bijapur district and Telangana's Bhadadri Kothagudem district.
Speaking to India Today, Bijapur SP confirmed the encounter and said one jawan, who was part of the police party, was also injured and an evacuation process is on.
Senior police officials of Telangana were trying to bring the security force party back to a safe location as the encounter site is known as a Maoist den.
While speaking with India Today, a top state intelligence officer also confirmed the encounter and said the party had first recovered 10 bodies of red rebels and further search operations were on.
Senior police officials of Telangana were monitoring the encounter and trying to bring back the security force party back to a safe location as the encounter site is known as a Maoist den.
A huge cache of arms and ammunition including two AK-47s, 4 Insas and one SLR rifles were recovered from the spot, which hints at the presence of big Maoist commanders at the encounter site. The dead were being identified.
Meanwhile, Revolutionary Writers Association member Varavara Rao termed the encounter as fake and demanded a judicial probe into it.
Pakistan targets Indian civilians, resorts to heavy shelling and firing along LoC
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Pakistan continued resorting to cross-border fire and heavy shelling targeting indian civilians and soldiers
According to an official, two Indian soldiers and a civilian were injured as Pakistan resorted to cross-border firing and heavy mortar shelling yesterday along LoC in Rajouri and Poonch district in Jammu.India
Pakistan Army shelled and fired forward areas along LoC in Sunderbani, Nowshera and Khour sectors of Rajouri and Jammu districts on Wednesday as well. Two Pakistani soldiers were killed in retaliatory fire by Indian troops, an Army official said.
"Pakistan troops resorted to heavy mortar shelling in Sunderban sector tonight. Due to shelling, there was a forest fire," Deputy Commissioner of Rajouri Shahid Iqbal Choudhary said.
There was shelling in Mangiote, Kalai and Minka in the same sector, he said, adding the Pakistani Army targeted civilian areas in Kalsia, Hania, Troi nalla, Baba Khori and Nowshera town located deep inside Indian territory.
A civilian was injured in the shelling in Kalsia, where a house was also damaged, Choudhary said.
"Shells landed near Nowshera town. It is a worrisome situation as interior areas are being targeted," the deputy commissioner said.
Earlier in the day, two Indian Army soldiers were injured in firing and shelling by Pakistani troops along the LoC, an official said, adding the injured soldiers were hospitalised.
Pakistani Army resorted to unprovoked and indiscriminate firing of small arms, automatics, and mortars from 8.45 am today along the LoC in Bhimber Gali sector of Poonch district, a defence spokesperson said, adding the Indian Army was retaliating strongly and effectively.
Ceasefire violations along the LoC and the International Border (IB) in Jammu and Kashmir have left 21 people, including 12 security personnel, dead and more than 80 others, mostly civilians, injured this year.
Though no ceasefire violation by Pakistani troops was reported along the IB since January 22, intermittent shelling has taken place along the LOC.
According to an official, two Indian soldiers and a civilian were injured as Pakistan resorted to cross-border firing and heavy mortar shelling yesterday along LoC in Rajouri and Poonch district in Jammu.India
Pakistan Army shelled and fired forward areas along LoC in Sunderbani, Nowshera and Khour sectors of Rajouri and Jammu districts on Wednesday as well. Two Pakistani soldiers were killed in retaliatory fire by Indian troops, an Army official said.
"Pakistan troops resorted to heavy mortar shelling in Sunderban sector tonight. Due to shelling, there was a forest fire," Deputy Commissioner of Rajouri Shahid Iqbal Choudhary said.
There was shelling in Mangiote, Kalai and Minka in the same sector, he said, adding the Pakistani Army targeted civilian areas in Kalsia, Hania, Troi nalla, Baba Khori and Nowshera town located deep inside Indian territory.
A civilian was injured in the shelling in Kalsia, where a house was also damaged, Choudhary said.
"Shells landed near Nowshera town. It is a worrisome situation as interior areas are being targeted," the deputy commissioner said.
Earlier in the day, two Indian Army soldiers were injured in firing and shelling by Pakistani troops along the LoC, an official said, adding the injured soldiers were hospitalised.
Pakistani Army resorted to unprovoked and indiscriminate firing of small arms, automatics, and mortars from 8.45 am today along the LoC in Bhimber Gali sector of Poonch district, a defence spokesperson said, adding the Indian Army was retaliating strongly and effectively.
Ceasefire violations along the LoC and the International Border (IB) in Jammu and Kashmir have left 21 people, including 12 security personnel, dead and more than 80 others, mostly civilians, injured this year.
Though no ceasefire violation by Pakistani troops was reported along the IB since January 22, intermittent shelling has taken place along the LOC.
Cabinet approves bill to seize all assets of 'fugitive offenders'
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Even as the country struggles to get hold of billionaire jeweller Nirav Modi and his uncle Mehul Choksi in connection with the multi-crore Punjab National Bank (PNB) fraud, the Cabinet today approved Fugitive Economic Offenders Bill 2018.
The Bill could facilitate action against absconding offenders.
Finance Minister Arun Jaitley while addressing media after the Cabinet meeting said: "Under the Bill all the assets (in the country) of the offender will be confiscated and not only the proceeds of crime. Even benami assets, if any, would be seized."
This Bill also has a provision to confiscate assets of the offender in foreign land as well, for which the government will have to make arrangements with different countries.
The rationale behind the bill is to check The trend of rising instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings.
It will target big defaulters, Jaitely said. The Bill will be introduced in the Budget Session of the Parliament.
The govt has the numbers in the Lok Sabha to pass the numerical test but in Rajya Sabha where its number are short of majority it would need support of several political opponents to make it a law.
A senior congress leader said that the party will discuss the bill and come up with a structured response. The leader however said, the bill is an eyewash.
We dont want another bill we will ask the govt why was Nirav modi allowed to escape and how the govt failed to detect a fraud of such magnitude
Interestingly the bill targets future Nirav modis and vijay Malayas. The provisions of the bill wouldnt apply to the Two FRAUDSTERS who owe indian banks amount in excess of 22000 crore.
WHAT THE BILL PROPOSES:
Govt sources say the existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem. The non-conviction-based asset confiscation for corruption-related cases is enabled under provisions of United Nations Convention against Corruption (ratified by India in 2011).
A government note on the bill says, "There have been several instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings. The absence of such offenders from Indian courts has several deleterious consequences--first, it hampers investigation in criminal cases; second, it wastes precious time of courts of law; third, it undermines the rule of law in India. Further, several such cases of economic offences involve non-repayment of bank loans thereby causing strain on the banking sector in India."
The Bill could facilitate action against absconding offenders.
Finance Minister Arun Jaitley while addressing media after the Cabinet meeting said: "Under the Bill all the assets (in the country) of the offender will be confiscated and not only the proceeds of crime. Even benami assets, if any, would be seized."
This Bill also has a provision to confiscate assets of the offender in foreign land as well, for which the government will have to make arrangements with different countries.
The rationale behind the bill is to check The trend of rising instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings.
It will target big defaulters, Jaitely said. The Bill will be introduced in the Budget Session of the Parliament.
The govt has the numbers in the Lok Sabha to pass the numerical test but in Rajya Sabha where its number are short of majority it would need support of several political opponents to make it a law.
A senior congress leader said that the party will discuss the bill and come up with a structured response. The leader however said, the bill is an eyewash.
We dont want another bill we will ask the govt why was Nirav modi allowed to escape and how the govt failed to detect a fraud of such magnitude
Interestingly the bill targets future Nirav modis and vijay Malayas. The provisions of the bill wouldnt apply to the Two FRAUDSTERS who owe indian banks amount in excess of 22000 crore.
WHAT THE BILL PROPOSES:
Govt sources say the existing civil and criminal provisions in law are not entirely adequate to deal with the severity of the problem. The non-conviction-based asset confiscation for corruption-related cases is enabled under provisions of United Nations Convention against Corruption (ratified by India in 2011).
A government note on the bill says, "There have been several instances of economic offenders fleeing the jurisdiction of Indian courts, anticipating the commencement, or during the pendency, of criminal proceedings. The absence of such offenders from Indian courts has several deleterious consequences--first, it hampers investigation in criminal cases; second, it wastes precious time of courts of law; third, it undermines the rule of law in India. Further, several such cases of economic offences involve non-repayment of bank loans thereby causing strain on the banking sector in India."
Business Affairs
PNB fraud: US court grants interim stay on debt collection against Nirav Modi's Firestar Diamond
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A US court today passed an interim order that prevents creditors from collecting debt from Nirav Modi-owned Firestar Diamond Inc which early this week filed for bankruptcy.
Modi, who is being investigated for illegal transfer of over Rs 12,000 crore from Punjab National Bank, has a majority stake in Firestar Diamond and its other sister companies through his other companies.
Firestar Diamond Inc filed the Chapter 11 voluntary petition in the New York Southern Bankruptcy Court on Monday.
Entering an order for relief, the US bankruptcy court in the Southern District of New York said that the filing of case imposed an automatic stay against most collection activities.
"This means that creditors generally may not take action to collect debts from the debtor or the debtor's property," the bankruptcy court said in its two-page order.
"For example, while the stay is in effect, creditors cannot sue, assert a deficiency, repossess property, or otherwise try to collect from the debtor. Creditors cannot demand repayment from the debtor by mail, phone, or otherwise," it said.
"Creditors who violate the stay can be required to pay actual and punitive damages and attorneys fees," the court warned in the order, copies of which have been transmitted to multiple stake holders, including a few dozen creditors of Firestar Diamond Inc.
A meeting of the creditors has been convened by the court in New York on March 30.
The interim relief comes days after Mihir Bhansali had filed for bankruptcy on behalf of three companies Fantasy Diamond Inc, Fantasy Inc, and A. Jaffe Inc, of which he is the president and sole director.
In a court submission on Wednesday, Firestar Diamond Inc (FDI) had provided a list of its creditors along with their details.
According to court papers, FDI and Fantasy currently have jewellery merchandise on consignment with their customers having an aggregate consignment price value of approximately USD 33,250,000 million.
AJI currently has jewellery merchandise on consignment with its customers having an aggregate consignment price value of approximately USD 7,300,000.
Bhansali said that during the pendency of these cases, it is its intention to continue to operate their businesses while seeking an infusion of capital or the sale of its businesses, in whole or in parts, as a going concern.
"The Debtors expect that the Chapter 11 process will add a sense of order, alleviate some of the concerns expressed by vendors and customers and create a forum in which potential purchasers for all or some of the businesses are willing to participate," he said.
According to court papers, Firestar Diamond and Fantasy have approximately USD 90 million of annual sales to some of the most well-known and well-regarded major department stores, major speciality stores chains, wholesale clubs, and United States armed services bases.
Their accounts include Zales, Kays, Jareds, COSTCO, Sams Club, Macys, JC Penney, and US Navy.
US court grants interim stay on debt collection against Firestar Diamond1(468 Words) Download Download PrintPrint 2/3/2018 2:00:00 PM
Washington, Mar 2 (PTI) A US court today passed an interim order that prevents creditors from collecting debt from Nirav Modi-owned Firestar Diamond Inc which early this week filed for bankruptcy.
Modi, who is being investigated for illegal transfer of over Rs 12,000 crore from Punjab National Bank, has a majority stake in Firestar Diamond and its other sister companies through his other companies.
Firestar Diamond Inc filed the Chapter 11 voluntary petition in the New York Southern Bankruptcy Court on Monday.
Entering an order for relief, the US bankruptcy court in the Southern District of New York said that the filing of case imposed an automatic stay against most collection activities.
"This means that creditors generally may not take action to collect debts from the debtor or the debtor's property," the bankruptcy court said in its two-page order.
"For example, while the stay is in effect, creditors cannot sue, assert a deficiency, repossess property, or otherwise try to collect from the debtor. Creditors cannot demand repayment from the debtor by mail, phone, or otherwise," it said.
"Creditors who violate the stay can be required to pay actual and punitive damages and attorneys fees," the court warned in the order, copies of which have been transmitted to multiple stake holders, including a few dozen creditors of Firestar Diamond Inc.
A meeting of the creditors has been convened by the court in New York on March 30.
The interim relief comes days after Mihir Bhansali had filed for bankruptcy on behalf of three companies Fantasy Diamond Inc, Fantasy Inc, and A. Jaffe Inc, of which he is the president and sole director.
In a court submission on Wednesday, Firestar Diamond Inc (FDI) had provided a list of its creditors along with their details.
According to court papers, FDI and Fantasy currently have jewellery merchandise on consignment with their customers having an aggregate consignment price value of approximately USD 33,250,000 million.
AJI currently has jewellery merchandise on consignment with its customers having an aggregate consignment price value of approximately USD 7,300,000.
Bhansali said that during the pendency of these cases, it is its intention to continue to operate their businesses while seeking an infusion of capital or the sale of its businesses, in whole or in parts, as a going concern.
"The Debtors expect that the Chapter 11 process will add a sense of order, alleviate some of the concerns expressed by vendors and customers and create a forum in which potential purchasers for all or some of the businesses are willing to participate," he said.
According to court papers, Firestar Diamond and Fantasy have approximately USD 90 million of annual sales to some of the most well-known and well-regarded major department stores, major speciality stores chains, wholesale clubs, and United States armed services bases.
A US court today passed an interim order that prevents creditors from collecting debt from Nirav Modi-owned Firestar Diamond Inc which early this week filed for bankruptcy.
Modi, who is being investigated for illegal transfer of over Rs 12,000 crore from Punjab National Bank, has a majority stake in Firestar Diamond and its other sister companies through his other companies.
Firestar Diamond Inc filed the Chapter 11 voluntary petition in the New York Southern Bankruptcy Court on Monday.
Entering an order for relief, the US bankruptcy court in the Southern District of New York said that the filing of case imposed an automatic stay against most collection activities.
"This means that creditors generally may not take action to collect debts from the debtor or the debtor's property," the bankruptcy court said in its two-page order.
"For example, while the stay is in effect, creditors cannot sue, assert a deficiency, repossess property, or otherwise try to collect from the debtor. Creditors cannot demand repayment from the debtor by mail, phone, or otherwise," it said.
"Creditors who violate the stay can be required to pay actual and punitive damages and attorneys fees," the court warned in the order, copies of which have been transmitted to multiple stake holders, including a few dozen creditors of Firestar Diamond Inc.
A meeting of the creditors has been convened by the court in New York on March 30.
The interim relief comes days after Mihir Bhansali had filed for bankruptcy on behalf of three companies Fantasy Diamond Inc, Fantasy Inc, and A. Jaffe Inc, of which he is the president and sole director.
In a court submission on Wednesday, Firestar Diamond Inc (FDI) had provided a list of its creditors along with their details.
According to court papers, FDI and Fantasy currently have jewellery merchandise on consignment with their customers having an aggregate consignment price value of approximately USD 33,250,000 million.
AJI currently has jewellery merchandise on consignment with its customers having an aggregate consignment price value of approximately USD 7,300,000.
Bhansali said that during the pendency of these cases, it is its intention to continue to operate their businesses while seeking an infusion of capital or the sale of its businesses, in whole or in parts, as a going concern.
"The Debtors expect that the Chapter 11 process will add a sense of order, alleviate some of the concerns expressed by vendors and customers and create a forum in which potential purchasers for all or some of the businesses are willing to participate," he said.
According to court papers, Firestar Diamond and Fantasy have approximately USD 90 million of annual sales to some of the most well-known and well-regarded major department stores, major speciality stores chains, wholesale clubs, and United States armed services bases.
Their accounts include Zales, Kays, Jareds, COSTCO, Sams Club, Macys, JC Penney, and US Navy.
US court grants interim stay on debt collection against Firestar Diamond1(468 Words) Download Download PrintPrint 2/3/2018 2:00:00 PM
US court grants interim stay on debt collection against Firestar Diamond1(468 Words) Download Download PrintPrint 2/3/2018 2:00:00 PM
Washington, Mar 2 (PTI) A US court today passed an interim order that prevents creditors from collecting debt from Nirav Modi-owned Firestar Diamond Inc which early this week filed for bankruptcy.
Modi, who is being investigated for illegal transfer of over Rs 12,000 crore from Punjab National Bank, has a majority stake in Firestar Diamond and its other sister companies through his other companies.
Firestar Diamond Inc filed the Chapter 11 voluntary petition in the New York Southern Bankruptcy Court on Monday.
Entering an order for relief, the US bankruptcy court in the Southern District of New York said that the filing of case imposed an automatic stay against most collection activities.
"This means that creditors generally may not take action to collect debts from the debtor or the debtor's property," the bankruptcy court said in its two-page order.
"For example, while the stay is in effect, creditors cannot sue, assert a deficiency, repossess property, or otherwise try to collect from the debtor. Creditors cannot demand repayment from the debtor by mail, phone, or otherwise," it said.
"Creditors who violate the stay can be required to pay actual and punitive damages and attorneys fees," the court warned in the order, copies of which have been transmitted to multiple stake holders, including a few dozen creditors of Firestar Diamond Inc.
A meeting of the creditors has been convened by the court in New York on March 30.
The interim relief comes days after Mihir Bhansali had filed for bankruptcy on behalf of three companies Fantasy Diamond Inc, Fantasy Inc, and A. Jaffe Inc, of which he is the president and sole director.
In a court submission on Wednesday, Firestar Diamond Inc (FDI) had provided a list of its creditors along with their details.
According to court papers, FDI and Fantasy currently have jewellery merchandise on consignment with their customers having an aggregate consignment price value of approximately USD 33,250,000 million.
AJI currently has jewellery merchandise on consignment with its customers having an aggregate consignment price value of approximately USD 7,300,000.
Bhansali said that during the pendency of these cases, it is its intention to continue to operate their businesses while seeking an infusion of capital or the sale of its businesses, in whole or in parts, as a going concern.
"The Debtors expect that the Chapter 11 process will add a sense of order, alleviate some of the concerns expressed by vendors and customers and create a forum in which potential purchasers for all or some of the businesses are willing to participate," he said.
According to court papers, Firestar Diamond and Fantasy have approximately USD 90 million of annual sales to some of the most well-known and well-regarded major department stores, major speciality stores chains, wholesale clubs, and United States armed services bases.
ArcelorMittal forms joint venture with NSSMC to acquire Essar Steel
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ArcelorMittal today said it has entered into a joint venture pact with Nippon Steel & Sumitomo Metal Corporation (NSSMC) to jointly acquire the assets of Essar Steel.
The company's arm ArcelorMittal India Pvt Ltd (AMIPL) had submitted a resolution plan for Essar Steel on February 12, which outlined the intention to have NSSMC formally join its bid for Essar Steel.
Essar Steel was among the initial 12 companies identified by the Reserve Bank of India (RBI) for insolvency proceedings.
"Should the submitted Resolution Plan be selected and formally accepted by India s National Company Law Tribunal, ArcelorMittal and NSSMC would jointly acquire and manage Essar Steel," ArcelorMittal said in a statement.
In its Resolution Plan, the AMIPL set out a detailed industrial and turnaround plan aimed at restoring Essar Steel s fortunes, enabling it to realise its full potential and participate in the anticipated steel demand growth in India, the statement said.
"Partnering with NSSMC for Essar Steel was always our intention and adds further strength to our offer. Combining our experience and expertise creates a powerful partnership that has a proven track record - our rich history of positive collaboration dates back more than 20 years with three joint ventures in the US," ArcelorMittal Chairman and CEO Lakshmi Mittal said.
"We believe that together we can contribute our knowledge and technology to support a rapid turn-around in Essar s performance, enabling it to increase production, enhance its product capabilities and make a meaningful contribution to the future growth of India s manufacturing sector and the development of its economy," he said.
ArcelorMittal and NSSMC have operated in Indiana, USA, under joint venture agreements since 1987.
More recently, in 2014, ArcelorMittal partnered with NSSMC on the acquisition of AM/NS Calvert, a state-of-the-art downstream finishing facility in Alabama, USA.
The facility, which opened in 2010 and has a 5.3 million tonne capacity, was the largest newly-constructed steel facility in the US in 40 years but had failed to reach its potential.
A major investment programme has been undertaken following the acquisition.
The programme focused on improving the facility s finishing lines to enable the production of higher-added value steel products.
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 nations.
The company's arm ArcelorMittal India Pvt Ltd (AMIPL) had submitted a resolution plan for Essar Steel on February 12, which outlined the intention to have NSSMC formally join its bid for Essar Steel.
Essar Steel was among the initial 12 companies identified by the Reserve Bank of India (RBI) for insolvency proceedings.
"Should the submitted Resolution Plan be selected and formally accepted by India s National Company Law Tribunal, ArcelorMittal and NSSMC would jointly acquire and manage Essar Steel," ArcelorMittal said in a statement.
In its Resolution Plan, the AMIPL set out a detailed industrial and turnaround plan aimed at restoring Essar Steel s fortunes, enabling it to realise its full potential and participate in the anticipated steel demand growth in India, the statement said.
"Partnering with NSSMC for Essar Steel was always our intention and adds further strength to our offer. Combining our experience and expertise creates a powerful partnership that has a proven track record - our rich history of positive collaboration dates back more than 20 years with three joint ventures in the US," ArcelorMittal Chairman and CEO Lakshmi Mittal said.
"We believe that together we can contribute our knowledge and technology to support a rapid turn-around in Essar s performance, enabling it to increase production, enhance its product capabilities and make a meaningful contribution to the future growth of India s manufacturing sector and the development of its economy," he said.
ArcelorMittal and NSSMC have operated in Indiana, USA, under joint venture agreements since 1987.
More recently, in 2014, ArcelorMittal partnered with NSSMC on the acquisition of AM/NS Calvert, a state-of-the-art downstream finishing facility in Alabama, USA.
The facility, which opened in 2010 and has a 5.3 million tonne capacity, was the largest newly-constructed steel facility in the US in 40 years but had failed to reach its potential.
A major investment programme has been undertaken following the acquisition.
The programme focused on improving the facility s finishing lines to enable the production of higher-added value steel products.
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 nations.
AI-transformation can't happen with tech alone; need to equip workforce with right skills
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Artificial intelligence (AI) has come out of labs and movies and pervaded our homes! From Alexa to Nest to Siri to Uber, we are surrounded by smart machines running on incredibly powerful and self-learning software platforms. And this is just the beginning. Now, AI is transitioning from being just our personal assistant to much more disruptive domains by rapidly outperforming the most talented of us in many endeavours. From AI platforms out-competing humans at some of the most challenging games like Jeopardy, chess to the still relatively nascent driverless cars.
In healthcare, smart AI systems are quickly surpassing the capabilities of human radiologists researchers at Houston Methodist Hospital utilise AI software, which interprets the results of breast X-rays 30 times faster than doctors and with 99 per cent accuracy.
AI applications across the industries will have a significant transformational impact, but it will be accompanied by changes in skills that employees need to learn. Adoption of bots in bank will start replacing low-skilled branch employees in the next three-four years. As AI technologies will be embedded in each and every function across the BFSI (Banking, Financial services and Insurance) value chain, there will be a need for reskilling the current workforce to align them with more value-added services such as product development, risk management, underwriting loans, etc. For new recruitments, there will be an increased demand for professionals with focus on Fintech and understanding of new-age technologies such as AI.
According to an EY poll of 200 senior global AI professionals on the current state of AI adoption and integration, talent is a principal concern, with 56 per cent reporting a lack of AI experts as their greatest barrier to AI implementation within business operations. While new roles such as automation specialists, information architects, bot programmers etc. are emerging, they will be relevant for structured AI implementations. At the same time, a lot of existing roles will need to be augmented to ensure that humans and machines are able to work seamlessly. For example, to get the most from AI, managers must become augmented managers and participate in the instructional experience by learning processes.
One important but often-overlooked aspect of augmenting work is to recognise the relationship that exists between augmenting a job/role/process and automating it. In many ways, automation and augmenting are two sides of the same coin. To effectively augment, one needs to automate. For instance, in the retail industry, a lot of jobs across inventory management and logistics will be automated to achieve higher efficiency.
While some job roles will be merged to be able to better work with the robots, the retail sector will see an increase in augmented jobs that include working with new technologies such as data analytics, IoT and blockchain. Jobs will increase for profiles such as IoT architects, system integrators and data analysts. This positive sentiment is echoed in the survey as well overall 62 per cent of employees have a positive sentiment towards AI which suggests stakeholders are increasingly embracing the potential of AI.
This year, as businesses strategised on how to integrate AI into their operations, they were challenged by a shortage of experts with requisite knowledge of the technology. This serves to demonstrate that successful AI integration is not just about the technology, it's about the people. Looking to 2018, organisations should prioritise talent acquisition and cultivation-both by recruiting individuals with strong technical backgrounds and investing in skills and training programmes to help retain and foster leading AI practitioners.
Preparing potential workforce by identifying and training them on appropriate skills before the need arises requires an understanding of emerging skills requirements. The demand for AI talent is driving top-business schools to include AI and machine learning (ML) in their curriculum from next year.
While most organisations have embarked on their AI journey, the pace of adoption is bound to accelerate in 2018. The aspirational goal of AI is to take intelligence and put it into machines. To be successful, leaders will identify a business challenge and then determine where the technology can solve a problem. To be innovative, leaders will transform a traditional process/industry by discovering new techniques and knowledge to find the answers that are not obvious like 'what if a company knows what the customer will buy even when the customer has no idea?' But all this can only be realised with the support of AI-savvy professionals who can identify AI opportunities, and AI implementation specialists who holds good knowledgeable on AI components, including ML, Data and other underlying technologies.
In healthcare, smart AI systems are quickly surpassing the capabilities of human radiologists researchers at Houston Methodist Hospital utilise AI software, which interprets the results of breast X-rays 30 times faster than doctors and with 99 per cent accuracy.
AI applications across the industries will have a significant transformational impact, but it will be accompanied by changes in skills that employees need to learn. Adoption of bots in bank will start replacing low-skilled branch employees in the next three-four years. As AI technologies will be embedded in each and every function across the BFSI (Banking, Financial services and Insurance) value chain, there will be a need for reskilling the current workforce to align them with more value-added services such as product development, risk management, underwriting loans, etc. For new recruitments, there will be an increased demand for professionals with focus on Fintech and understanding of new-age technologies such as AI.
According to an EY poll of 200 senior global AI professionals on the current state of AI adoption and integration, talent is a principal concern, with 56 per cent reporting a lack of AI experts as their greatest barrier to AI implementation within business operations. While new roles such as automation specialists, information architects, bot programmers etc. are emerging, they will be relevant for structured AI implementations. At the same time, a lot of existing roles will need to be augmented to ensure that humans and machines are able to work seamlessly. For example, to get the most from AI, managers must become augmented managers and participate in the instructional experience by learning processes.
One important but often-overlooked aspect of augmenting work is to recognise the relationship that exists between augmenting a job/role/process and automating it. In many ways, automation and augmenting are two sides of the same coin. To effectively augment, one needs to automate. For instance, in the retail industry, a lot of jobs across inventory management and logistics will be automated to achieve higher efficiency.
While some job roles will be merged to be able to better work with the robots, the retail sector will see an increase in augmented jobs that include working with new technologies such as data analytics, IoT and blockchain. Jobs will increase for profiles such as IoT architects, system integrators and data analysts. This positive sentiment is echoed in the survey as well overall 62 per cent of employees have a positive sentiment towards AI which suggests stakeholders are increasingly embracing the potential of AI.
This year, as businesses strategised on how to integrate AI into their operations, they were challenged by a shortage of experts with requisite knowledge of the technology. This serves to demonstrate that successful AI integration is not just about the technology, it's about the people. Looking to 2018, organisations should prioritise talent acquisition and cultivation-both by recruiting individuals with strong technical backgrounds and investing in skills and training programmes to help retain and foster leading AI practitioners.
Preparing potential workforce by identifying and training them on appropriate skills before the need arises requires an understanding of emerging skills requirements. The demand for AI talent is driving top-business schools to include AI and machine learning (ML) in their curriculum from next year.
While most organisations have embarked on their AI journey, the pace of adoption is bound to accelerate in 2018. The aspirational goal of AI is to take intelligence and put it into machines. To be successful, leaders will identify a business challenge and then determine where the technology can solve a problem. To be innovative, leaders will transform a traditional process/industry by discovering new techniques and knowledge to find the answers that are not obvious like 'what if a company knows what the customer will buy even when the customer has no idea?' But all this can only be realised with the support of AI-savvy professionals who can identify AI opportunities, and AI implementation specialists who holds good knowledgeable on AI components, including ML, Data and other underlying technologies.
Trump to impose import tariff on steel, aluminium; could trigger global trade war
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US President Donald Trump has said that he would impose a 25 per cent import tariff on steel and 10 per cent on aluminium to protect US producers, a move that could trigger a trade war with China and Europe.
An executive order in this regard would be signed next week, Trump said after a meeting with executives of steel and aluminium companies yesterday.
"It'll be for a long period of time... And you'll have protection for a long time in a while. You'll have to regrow your industries, that's all I'm asking," Trump said in the presence of a pool of reporters.
Trump said the import tariff hike would create jobs in the US and benefit its industries.
He said the people representing the US had "destroyed" the steel industry, aluminium industry, and other industries.
"Frankly, when you look at all the plants, the car plants, automobile plants that moved down to Mexico for no reason whatsoever, except we didn't know what we were doing. We're going to build our steel industry back and we're going to build our aluminium industry back," he said.
His announcement was welcomed by the domestic steel and aluminium industry and several lawmakers, but drew sharp reaction from other quarters who felt that this would have a detrimental impact on the American economy.
The Wall Street Journal said that such a move by Trump has "sparked worries" of a looming global trade war.
Dow Jones Industrial average dropped by 400 points after Trump's announcement.
China, which ranks 11 among the largest sources of US steel imports, however, asked the United States to "exercise restraint in using trade protection tools".
"If all countries follow the example of the US, this will undoubtedly result in a serious impact on the international trade order," Chinese Foreign Ministry spokeswoman Hua Chunying told reporters today in Beijing.
The European Steel Association accused the US of choosing to spark a "global trade confrontation". It predicted that the European Union steel exports to the US will be slashed by an estimated 50 per cent or more after the Trump's latest move.
In a statement in Brussels, the European Commission chief Jean-Claude Juncker said that the EU "will react firmly and commensurately to defend our interests" in response to tough US steel and aluminium tariffs.
Congressman Mike Bost, Co-Chairman of the Congressional Steel Caucus, said he is very encouraged by Trump's "critically important" decision.
"The domestic industry has suffered greatly at the hands of global steel overcapacity and unfair trade, which threatens US national security interests," said Bost.
"Today s announcement is a bold step forward to stop unfair trade practices so American steel-workers can continue to make American steel that supports our military, critical infrastructure, and the livelihoods of American families," he said.
Democratic Senator Sherrod Brown called the import tariff hike "a decision which was long overdue".
"President Trump must follow through on his commitment to save American steel jobs and stop Chinese steel overcapacity from continuing to infect global markets," said Brown.
However, Republican Senator from Utah, Mike Lee claimed the proposed tariffs would be a huge job-killing tax hike on American consumers.
"While I am sympathetic to the issues facing domestic steel manufacturers, there must be a better way to address the steel industries concerns, and I hope Congress and the executive branch can identify an alternative solution before these tariffs are finalized next week," he said.
Another Republican Congressman Pete Olson expressed concern over Trump's decision on proposed tariffs on steel and aluminium imports.
"We must tread carefully when imposing tariffs of this size as they often have unintended consequences on American businesses," he said.
Senate Finance Committee Ranking Member Ron Wyden said the American steel industry has been "under pressure" for decades from "unfairly" traded products from China and elsewhere.
"Until the details are known, however, it is too soon to tell whether the measures announced today will end China's overcapacity and bring back good paying American jobs or simply provide a short-term boost to corporate profits," he said.
An executive order in this regard would be signed next week, Trump said after a meeting with executives of steel and aluminium companies yesterday.
"It'll be for a long period of time... And you'll have protection for a long time in a while. You'll have to regrow your industries, that's all I'm asking," Trump said in the presence of a pool of reporters.
Trump said the import tariff hike would create jobs in the US and benefit its industries.
He said the people representing the US had "destroyed" the steel industry, aluminium industry, and other industries.
"Frankly, when you look at all the plants, the car plants, automobile plants that moved down to Mexico for no reason whatsoever, except we didn't know what we were doing. We're going to build our steel industry back and we're going to build our aluminium industry back," he said.
His announcement was welcomed by the domestic steel and aluminium industry and several lawmakers, but drew sharp reaction from other quarters who felt that this would have a detrimental impact on the American economy.
The Wall Street Journal said that such a move by Trump has "sparked worries" of a looming global trade war.
Dow Jones Industrial average dropped by 400 points after Trump's announcement.
China, which ranks 11 among the largest sources of US steel imports, however, asked the United States to "exercise restraint in using trade protection tools".
"If all countries follow the example of the US, this will undoubtedly result in a serious impact on the international trade order," Chinese Foreign Ministry spokeswoman Hua Chunying told reporters today in Beijing.
The European Steel Association accused the US of choosing to spark a "global trade confrontation". It predicted that the European Union steel exports to the US will be slashed by an estimated 50 per cent or more after the Trump's latest move.
In a statement in Brussels, the European Commission chief Jean-Claude Juncker said that the EU "will react firmly and commensurately to defend our interests" in response to tough US steel and aluminium tariffs.
Congressman Mike Bost, Co-Chairman of the Congressional Steel Caucus, said he is very encouraged by Trump's "critically important" decision.
"The domestic industry has suffered greatly at the hands of global steel overcapacity and unfair trade, which threatens US national security interests," said Bost.
"Today s announcement is a bold step forward to stop unfair trade practices so American steel-workers can continue to make American steel that supports our military, critical infrastructure, and the livelihoods of American families," he said.
Democratic Senator Sherrod Brown called the import tariff hike "a decision which was long overdue".
"President Trump must follow through on his commitment to save American steel jobs and stop Chinese steel overcapacity from continuing to infect global markets," said Brown.
However, Republican Senator from Utah, Mike Lee claimed the proposed tariffs would be a huge job-killing tax hike on American consumers.
"While I am sympathetic to the issues facing domestic steel manufacturers, there must be a better way to address the steel industries concerns, and I hope Congress and the executive branch can identify an alternative solution before these tariffs are finalized next week," he said.
Another Republican Congressman Pete Olson expressed concern over Trump's decision on proposed tariffs on steel and aluminium imports.
"We must tread carefully when imposing tariffs of this size as they often have unintended consequences on American businesses," he said.
Senate Finance Committee Ranking Member Ron Wyden said the American steel industry has been "under pressure" for decades from "unfairly" traded products from China and elsewhere.
"Until the details are known, however, it is too soon to tell whether the measures announced today will end China's overcapacity and bring back good paying American jobs or simply provide a short-term boost to corporate profits," he said.
Home, auto loan EMIs to go up as SBI, PNB hike lending rates
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Two state-run lenders State Bank of India and Punjab National Bank on Thursday raised their lending rates by up to 20 basis points, a move that will increase the interest rates on existing as well as home, auto loans and personal loans. While the nation's largest lender SBI raised its one year MCLR (marginal cost of fund-based lending rate) by 20 basis points (bps) to 8.15 per cent, PNB increased its loan prices by 15 bps to 8.30 per cent.
The lending rate hike by these lenders come even as the Reserve Bank has been in an accommodative/neutral stance since January 2015. The present RBI rate or repo rate is 5.75 per cent now.
Even in the last policy review early last month, the central bank had sounded more accommodative than hawkish even though it increased its inflation forecast.
Defending the hike that will hurt all borrowers, especially the individual borrowers the most, SBI said "in the past one month, liquidity situation, which used to be in surplus has become neutral or maybe in a minor deficit mode. "Also bond yields have gone up by around 125-150 basis points over the past few months. Given the liquidity situation, some alignment was required and it has been done today," SBI managing director and head of retail and digital banking PK Gupta said.
The lending rate hike also comes in the wake of banks as a whole seeing pick-up in credit demand. After many years of low single-digit credit growth, the quarterly loan demand crossed the double-digit mark at close to 11 per cent in the three months to December 2017.
Gupta said even after this increase, SBI's lending rate is marginally lower than what other banks are offering. "Earlier, the whole market was in a downward cycle but now the feeling is that the risk for inflation is on the upside only. We think that the downward cycle is over and the rate should probably remain stable around the current rates for some time," Gupta of SBI said.
The State Bank raised its six-month MCLR by 10 bps to 8 per cent, while its three-year loan pricing goes up by 25 bps to 8.35 per cent.
The Delhi-based PNB, which is firefighting the largest financial fraud in the country and staring at a possible loss of around Rs 13,000 crore, has also followed its larger per hiked its one year MCLR rate by 15 bps to 8.30 per cent.
PNB, which is the second largest public sector lender, also raised the overnight, one-month, three-month and six- month rates by 15 bps to 7.80 per cent, 7.95 per cent, 8.10 per cent and 8.25 per cent, respectively.
The SBI move comes a day after it had raised its retail and bulk term deposit rates for various maturities by up to 75 bps.
For retail deposits, below Rs 1 crore, the rate was increased by up to 0.50 per cent, while for deposits maturing in one year to less than two years, it was hiked by 0.15 per cent to 6.40 per cent.
PNB also increased its retail and bulk term deposits by up to 45 basis points today. For retail deposits maturing in one-year to three-year, rate has been increased by 25 bps to 6.75 per cent. The bulk deposits for one year maturity has been increased to 6.75 per cent from 6.50 per cent.
The lending rate hike by these lenders come even as the Reserve Bank has been in an accommodative/neutral stance since January 2015. The present RBI rate or repo rate is 5.75 per cent now.
Even in the last policy review early last month, the central bank had sounded more accommodative than hawkish even though it increased its inflation forecast.
Defending the hike that will hurt all borrowers, especially the individual borrowers the most, SBI said "in the past one month, liquidity situation, which used to be in surplus has become neutral or maybe in a minor deficit mode. "Also bond yields have gone up by around 125-150 basis points over the past few months. Given the liquidity situation, some alignment was required and it has been done today," SBI managing director and head of retail and digital banking PK Gupta said.
The lending rate hike also comes in the wake of banks as a whole seeing pick-up in credit demand. After many years of low single-digit credit growth, the quarterly loan demand crossed the double-digit mark at close to 11 per cent in the three months to December 2017.
Gupta said even after this increase, SBI's lending rate is marginally lower than what other banks are offering. "Earlier, the whole market was in a downward cycle but now the feeling is that the risk for inflation is on the upside only. We think that the downward cycle is over and the rate should probably remain stable around the current rates for some time," Gupta of SBI said.
The State Bank raised its six-month MCLR by 10 bps to 8 per cent, while its three-year loan pricing goes up by 25 bps to 8.35 per cent.
The Delhi-based PNB, which is firefighting the largest financial fraud in the country and staring at a possible loss of around Rs 13,000 crore, has also followed its larger per hiked its one year MCLR rate by 15 bps to 8.30 per cent.
PNB, which is the second largest public sector lender, also raised the overnight, one-month, three-month and six- month rates by 15 bps to 7.80 per cent, 7.95 per cent, 8.10 per cent and 8.25 per cent, respectively.
The SBI move comes a day after it had raised its retail and bulk term deposit rates for various maturities by up to 75 bps.
For retail deposits, below Rs 1 crore, the rate was increased by up to 0.50 per cent, while for deposits maturing in one year to less than two years, it was hiked by 0.15 per cent to 6.40 per cent.
PNB also increased its retail and bulk term deposits by up to 45 basis points today. For retail deposits maturing in one-year to three-year, rate has been increased by 25 bps to 6.75 per cent. The bulk deposits for one year maturity has been increased to 6.75 per cent from 6.50 per cent.
General Awareness
Statutory, regulatory and various quasi-judicial bodies.
Income Tax Appellate Tribunal
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Context: A recent decision of the Income Tax Appellate Tribunal’s Pune bench allowing pharmaceutical companies to account for their spending on doctors as a deductible expenditure has sparked off a fresh debate on ethics.
What’s the concern now?
Since the companies are out of the purview of the Medical Council of India (MCI), money spent on promotions, which in some cases could be gifts, travel, hospitality and so on for doctors, besides medical conferences and samples, can be claimed as deductible expenditure. Doctors accepting such promotions may be violating the code of ethics of the MCI.
About ITAI:
ITAT is a quasi judicial institution set up in January, 1941 and specializes in dealing with appeals under the Direct Taxes Acts.
It was set up by virtue of section 5A of the Income Tax Act, 1922.
The orders passed by the ITAT are final, an appeal lies to the High Court only if a substantial question of law arises for determination.
It functions under the Department of Legal Affairs in the Ministry of Law and Justice.
How can ITAT’s performance be enhanced?
Commonly suggested remedies include increasing the number of judges or the number of benches to deal with increased caseload.
Additionally, solutions to delays in ITAT lie in prioritizing and scheduling the workload properly. Although ITAT is a specialized court, there are variations in the complexity and urgency of the cases that come before it. Therefore, it may be useful to frame rules on how different types of cases would be prioritized.
Qualitative aspects of rulings, factors influencing them and most frequently litigated subject-matters will also be useful in deciding the policy strategy for improving India’s tax environment.
Way ahead:
Indian tax administration and adjudication needs urgent reforms. For this, a comprehensive performance analysis of ITAI is necessary. Also, more studies should be conducted to identify the exact institutional weaknesses in tax administration, improving which could help improve India’s abysmally low ranking on the “Paying Taxes” parameter in the Ease of Doing Business Index, and ensuring that citizens have access to an independent and impartial appeals mechanism.
What’s the concern now?
Since the companies are out of the purview of the Medical Council of India (MCI), money spent on promotions, which in some cases could be gifts, travel, hospitality and so on for doctors, besides medical conferences and samples, can be claimed as deductible expenditure. Doctors accepting such promotions may be violating the code of ethics of the MCI.
About ITAI:
ITAT is a quasi judicial institution set up in January, 1941 and specializes in dealing with appeals under the Direct Taxes Acts.
It was set up by virtue of section 5A of the Income Tax Act, 1922.
The orders passed by the ITAT are final, an appeal lies to the High Court only if a substantial question of law arises for determination.
It functions under the Department of Legal Affairs in the Ministry of Law and Justice.
How can ITAT’s performance be enhanced?
Commonly suggested remedies include increasing the number of judges or the number of benches to deal with increased caseload.
Additionally, solutions to delays in ITAT lie in prioritizing and scheduling the workload properly. Although ITAT is a specialized court, there are variations in the complexity and urgency of the cases that come before it. Therefore, it may be useful to frame rules on how different types of cases would be prioritized.
Qualitative aspects of rulings, factors influencing them and most frequently litigated subject-matters will also be useful in deciding the policy strategy for improving India’s tax environment.
Way ahead:
Indian tax administration and adjudication needs urgent reforms. For this, a comprehensive performance analysis of ITAI is necessary. Also, more studies should be conducted to identify the exact institutional weaknesses in tax administration, improving which could help improve India’s abysmally low ranking on the “Paying Taxes” parameter in the Ease of Doing Business Index, and ensuring that citizens have access to an independent and impartial appeals mechanism.
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