General Affairs
Appointing Eminent Jurist In Lokpal Panel Priority: Centre Tells Top Court
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The selection committee for appointing Lokpal has decided to first fill the vacancy of eminent jurist in the panel before taking further action, the centre today told the Supreme Court about the outcome of the committee's March 1 meeting in which Congress leader Mallikarjun Kharge declined to participate as a special invitee.
Those who participated in the meeting were the Prime Minister, Chief Justice of India and Lok Sabha Speaker, as the chairman and members of the selection committee respectively.
"Mallikarjun Kharge, leader of Indian National Congress which is the single largest party in opposition in the Lok Sabha, who was invited to attend the meeting as 'special invitee', declined to attend the meeting," the affidavit filed by the centre said, adding that Mr Kharge had sent a communication in this regard on February 28.
At the outset, Attorney General K K Venugopal referred to the affidavit filed by the Department of Personnel and Training before a bench of justices Ranjan Gogoi and R Banumathi which was told that the selection committee has taken note of the vacancy of eminent person and has decided to fill it up at the earliest before proceeding with the matter.
The post of eminent jurist has fallen vacant due to the passing away of senior advocate P P Rao last year.
Taking note of the submission of the Attorney General and the Centre's affidavit, the bench asked "Is there any indication when this eminent jurist will be selected?"
When Venugopal replied that it would be done "at the earliest", the bench observed, "at the earliest means neither here nor there."
Advocate Prashant Bhushan, appearing for NGO Common Cause, which has filed a plea seeking initiation of contempt proceedings for not appointing a Lokpal despite the apex court's verdict of April 27 last year, told the bench that it was quiet clear that the government does not want to appoint Lokpal and they were simply dragging their feet.
He said that almost an year has gone by since the apex court had passed a judgement but nothing has been done and only after the contempt plea was filed before the top court, a meeting of the selection committee was scheduled for March 1.
The bench, which posted the matter for April 17, said, "let us see what they do in these four weeks."
In the affidavit, the Centre gave the details of the the steps taken and proposed under the Lokpal and Lokayuktas Act, 2013.
It said that the Supreme Court's April 27, 2017 verdict was duly considered by the competent authority of the central government.
"Taking note of the judgement in letter and spirit, the chairperson of the selection committee, viz, the Prime Minister took a decision on February 22 to convene a meeting of the selection committee as provided under section 4 (1) of the Lokpal and Lokayuktas Act," the affidavit said.
The notice of the meeting addressed to the members of the selection committee was issued on February 22 and it was scheduled for March 1 at 7, Lok Kalyan Marg in Delhi, the official residence of the Prime Minister, it said.
The committee took note of the vacancy in the position of 'eminent jurist' in the selection committee and "it was decided first to fill up the vacancy of the 'eminent jurist' as a member of the selection committee under the Act at the earliest before proceeding further in the matter", it said.
The centre said that the selection committee is currently seized with the matter and once the 'eminent jurist' is appointed as a member in the existing vacancy, further steps will be taken by the selection committee to proceed in the matter.
The centre had, on February 23, told the apex court that the process for appointing the anti-graft ombudsman Lokpal was going on.
The court had asked the secretary of the Department of Personnel and Training to file an affidavit about the "steps taken and proposed".
The top court, in its verdict last year, had said there was no justification to keep the enforcement of Lokpal Act suspended till the proposed amendments, including on the issue of the Leader of Opposition in Lok Sabha, were cleared by the parliament.
It had said the Act was an eminently workable piece of legislation and "does not create any bar to the enforcement of the provisions".
It had said the amendments proposed to the Lokpal and Lokayuktas Act 2013, and the views of the Parliamentary Standing Committee, were attempts to streamline the working of the Act and does not constitute legal hindrances or bar its enforcement.
The court had also said that such attempts for an amendment cannot halt the operation and execution of the law, which the executive in its wisdom has already given effect to and brought into force by resorting to the provisions of the Act.
The judgement had come on a plea by the NGO and others seeking immediate appointment of Lokpal in the country.
The court had said that section 4(2) of the Act makes it clear that the appointment of chairperson or a member of the Lokpal will not become invalid merely because of a vacancy in the selection committee.
Those who participated in the meeting were the Prime Minister, Chief Justice of India and Lok Sabha Speaker, as the chairman and members of the selection committee respectively.
"Mallikarjun Kharge, leader of Indian National Congress which is the single largest party in opposition in the Lok Sabha, who was invited to attend the meeting as 'special invitee', declined to attend the meeting," the affidavit filed by the centre said, adding that Mr Kharge had sent a communication in this regard on February 28.
At the outset, Attorney General K K Venugopal referred to the affidavit filed by the Department of Personnel and Training before a bench of justices Ranjan Gogoi and R Banumathi which was told that the selection committee has taken note of the vacancy of eminent person and has decided to fill it up at the earliest before proceeding with the matter.
The post of eminent jurist has fallen vacant due to the passing away of senior advocate P P Rao last year.
Taking note of the submission of the Attorney General and the Centre's affidavit, the bench asked "Is there any indication when this eminent jurist will be selected?"
When Venugopal replied that it would be done "at the earliest", the bench observed, "at the earliest means neither here nor there."
Advocate Prashant Bhushan, appearing for NGO Common Cause, which has filed a plea seeking initiation of contempt proceedings for not appointing a Lokpal despite the apex court's verdict of April 27 last year, told the bench that it was quiet clear that the government does not want to appoint Lokpal and they were simply dragging their feet.
He said that almost an year has gone by since the apex court had passed a judgement but nothing has been done and only after the contempt plea was filed before the top court, a meeting of the selection committee was scheduled for March 1.
The bench, which posted the matter for April 17, said, "let us see what they do in these four weeks."
In the affidavit, the Centre gave the details of the the steps taken and proposed under the Lokpal and Lokayuktas Act, 2013.
It said that the Supreme Court's April 27, 2017 verdict was duly considered by the competent authority of the central government.
"Taking note of the judgement in letter and spirit, the chairperson of the selection committee, viz, the Prime Minister took a decision on February 22 to convene a meeting of the selection committee as provided under section 4 (1) of the Lokpal and Lokayuktas Act," the affidavit said.
The notice of the meeting addressed to the members of the selection committee was issued on February 22 and it was scheduled for March 1 at 7, Lok Kalyan Marg in Delhi, the official residence of the Prime Minister, it said.
The committee took note of the vacancy in the position of 'eminent jurist' in the selection committee and "it was decided first to fill up the vacancy of the 'eminent jurist' as a member of the selection committee under the Act at the earliest before proceeding further in the matter", it said.
The centre said that the selection committee is currently seized with the matter and once the 'eminent jurist' is appointed as a member in the existing vacancy, further steps will be taken by the selection committee to proceed in the matter.
The centre had, on February 23, told the apex court that the process for appointing the anti-graft ombudsman Lokpal was going on.
The court had asked the secretary of the Department of Personnel and Training to file an affidavit about the "steps taken and proposed".
The top court, in its verdict last year, had said there was no justification to keep the enforcement of Lokpal Act suspended till the proposed amendments, including on the issue of the Leader of Opposition in Lok Sabha, were cleared by the parliament.
It had said the Act was an eminently workable piece of legislation and "does not create any bar to the enforcement of the provisions".
It had said the amendments proposed to the Lokpal and Lokayuktas Act 2013, and the views of the Parliamentary Standing Committee, were attempts to streamline the working of the Act and does not constitute legal hindrances or bar its enforcement.
The court had also said that such attempts for an amendment cannot halt the operation and execution of the law, which the executive in its wisdom has already given effect to and brought into force by resorting to the provisions of the Act.
The judgement had come on a plea by the NGO and others seeking immediate appointment of Lokpal in the country.
The court had said that section 4(2) of the Act makes it clear that the appointment of chairperson or a member of the Lokpal will not become invalid merely because of a vacancy in the selection committee.
Transparency, Accountability Must For Good Governance, Says PM Modi
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Prime Minister Narendra Modi on Tuesday said transparency and accountability are necessary for a democratic and participative governance, as they help build trust and improve impact of schemes.
"Transparency in governance leads to greater responsibility towards people and a sense of accountability, which in turn bring changes in work culture and impact of (government) schemes," PM Modi said after inaugurating the new premises of the Central Information Commission in Delhi.
"As transparency in the system increases, there is more trust in the government."
An empowered citizen is the "strongest pillar" of democracy and the government has tried to "inform" and "empower" people in the last four years through various means, the Prime Minister said.
He said the government has started a new practice of providing information through real-time updated, online dashboards.
The information available online had not just helped people in solving their problem but also improved "transparency and quality of citizen services", PM Modi said.
It would help people feel more connected with the government, he added.
"There are several instances in the history where information had been treated as a one-way channel, which led to serious consequences. So our government has been working on the principle of information highway and not one dimensional approach," he said.
"We are working on the five pillars of today's advanced information highway. They are ask, listen, interact, act and inform."
"Transparency in governance leads to greater responsibility towards people and a sense of accountability, which in turn bring changes in work culture and impact of (government) schemes," PM Modi said after inaugurating the new premises of the Central Information Commission in Delhi.
"As transparency in the system increases, there is more trust in the government."
An empowered citizen is the "strongest pillar" of democracy and the government has tried to "inform" and "empower" people in the last four years through various means, the Prime Minister said.
He said the government has started a new practice of providing information through real-time updated, online dashboards.
The information available online had not just helped people in solving their problem but also improved "transparency and quality of citizen services", PM Modi said.
It would help people feel more connected with the government, he added.
"There are several instances in the history where information had been treated as a one-way channel, which led to serious consequences. So our government has been working on the principle of information highway and not one dimensional approach," he said.
"We are working on the five pillars of today's advanced information highway. They are ask, listen, interact, act and inform."
Mega Naval Exercise Begins In Andamans Amid Heightened Tension In Region
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The Indian Navy today began an eight-day-long mega naval exercise along with leading maritime powers of the region at the Andaman and Nicobar Islands, amid heightened regional tension in the region.
The biennial exercise -- Milan -- is taking place in the backdrop of imposition of state of emergency in Maldives and Sri Lanka, two of India's maritime neighbours, and China's growing assertiveness in the region.
Indian Navy officials said 28 warships including 17 from India and 11 from Australia, Bangladesh, Indonesia, Malaysia, Myanmar, Singapore, Sri Lanka and Thailand are participating in the exercise.
The aim of the 10th edition of the exercise is to expand regional cooperation and combat unlawful activities in critical sea lanes.
Maldives, which is reeling under political crisis, has declined India's offer to participate at the exercise citing the current situation in the island nation.
"Besides the warships, the prestigious international event will also see the participation of 39 delegates from 16 countries, making it the largest gathering since its inception in 1995," said a senior Navy official.
Navy sources said delegates from the countries would deliberate on the regional security situation and subject of discussion may include China's rising assertiveness in critical sea lanes.
On their arrival at Haddo Jetty, all foreign warships were received ceremonially in the true naval tradition by the Army and Navy bands, the officials said.
The Indian warships participating in the exercise include 11 ships of Andaman and Nicobar Command and six ships of the Eastern Fleet.
In November, India, the US, Australia and Japan gave shape to the long-pending quadrilateral coalition to develop a new strategy to keep the critical sea routes in the Indo-Pacific free of Chinese influence.
'Milan' was first held in 1995 with the participation of just five navies. The aim of the initiative was to have an effective forum to discuss common concerns in the Indian Ocean Region and forge deeper cooperation among friendly navies.
The exercise is being hosted by the Indian Navy under the aegis of the Andaman and Nicobar Command.
Junior Minister of Defence Subhash Bhamre, while replying to a question in Rajya Sabha yesterday had said, "Government is aware of China's stated objective of becoming a 'maritime power'."
"As part of this strategy, China is developing ports and other infrastructure facilities in the littoral countries in the Indian Ocean Region, including in the vicinity of India's maritime boundary," he said.
While state of emergency was declared in Maldives early last month, Sri Lankan government imposed a nationwide emergency today to contain communal violence in Kandy.
The biennial exercise -- Milan -- is taking place in the backdrop of imposition of state of emergency in Maldives and Sri Lanka, two of India's maritime neighbours, and China's growing assertiveness in the region.
Indian Navy officials said 28 warships including 17 from India and 11 from Australia, Bangladesh, Indonesia, Malaysia, Myanmar, Singapore, Sri Lanka and Thailand are participating in the exercise.
The aim of the 10th edition of the exercise is to expand regional cooperation and combat unlawful activities in critical sea lanes.
Maldives, which is reeling under political crisis, has declined India's offer to participate at the exercise citing the current situation in the island nation.
"Besides the warships, the prestigious international event will also see the participation of 39 delegates from 16 countries, making it the largest gathering since its inception in 1995," said a senior Navy official.
Navy sources said delegates from the countries would deliberate on the regional security situation and subject of discussion may include China's rising assertiveness in critical sea lanes.
On their arrival at Haddo Jetty, all foreign warships were received ceremonially in the true naval tradition by the Army and Navy bands, the officials said.
The Indian warships participating in the exercise include 11 ships of Andaman and Nicobar Command and six ships of the Eastern Fleet.
In November, India, the US, Australia and Japan gave shape to the long-pending quadrilateral coalition to develop a new strategy to keep the critical sea routes in the Indo-Pacific free of Chinese influence.
'Milan' was first held in 1995 with the participation of just five navies. The aim of the initiative was to have an effective forum to discuss common concerns in the Indian Ocean Region and forge deeper cooperation among friendly navies.
The exercise is being hosted by the Indian Navy under the aegis of the Andaman and Nicobar Command.
Junior Minister of Defence Subhash Bhamre, while replying to a question in Rajya Sabha yesterday had said, "Government is aware of China's stated objective of becoming a 'maritime power'."
"As part of this strategy, China is developing ports and other infrastructure facilities in the littoral countries in the Indian Ocean Region, including in the vicinity of India's maritime boundary," he said.
While state of emergency was declared in Maldives early last month, Sri Lankan government imposed a nationwide emergency today to contain communal violence in Kandy.
Mumbai Airport Ranked World's Best For Quality Service
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The Chhatrapati Shivaji Maharaj International Airport in Mumbai has been ranked the World's Best Airport for the Airport Service Quality Awards 2017 for superior customer experience, an official said on Tuesday.
The award was announced by the Airports Council International (ACI), which represented 1,953 member airports in 176 countries.
The selection of the Mumbai Airport was made on the basis of a worldwide programme in which passengers were surveyed across airports for their feedback on 34 key performance indicators.
These included service parameters, airport access, check-in, security screening, restrooms, stores and restaurants - which contribute to satisfying travellers' needs.
"We are delighted to be conferred with this award. In 2007, when we had taken over the complete operations of the airport, the ASQ score was 3.53 and in a decade we have got it to hover around 4.99 out of a maximum 5," said G.V.K. Reddy, founder-chairman of GVK Group which manages the airport.
The GVK-Mumbai International Airport Ltd is a public-private-partnership joint venture between the GVK-led consortium and Airports Authority of India.
The award was announced by the Airports Council International (ACI), which represented 1,953 member airports in 176 countries.
The selection of the Mumbai Airport was made on the basis of a worldwide programme in which passengers were surveyed across airports for their feedback on 34 key performance indicators.
These included service parameters, airport access, check-in, security screening, restrooms, stores and restaurants - which contribute to satisfying travellers' needs.
"We are delighted to be conferred with this award. In 2007, when we had taken over the complete operations of the airport, the ASQ score was 3.53 and in a decade we have got it to hover around 4.99 out of a maximum 5," said G.V.K. Reddy, founder-chairman of GVK Group which manages the airport.
The GVK-Mumbai International Airport Ltd is a public-private-partnership joint venture between the GVK-led consortium and Airports Authority of India.
MPs Fixing Salaries Themselves A Moral, Ethical Issue: Top Court
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The Supreme Court today said that parliamentarians determining their salary and perks themselves was an "moral" and "ethical issue" and sought for data on how much amount was spent on pension and other facilities provided to former lawmakers.
The top court observed this while hearing a petition which has raised several questions including how MPs could themselves determine their salaries and perks and also sought scrapping of pension to them.
Attorney General K K Venugopal told a bench comprising justices J Chelameswar and Sanjay Kishan Kaul that the Finance Bill 2018 contained provisions regarding salary and pension of MPs and also about revision of their allowances after every five years starting from 1 April 2023 on the basis of cost inflation index.
Mr Venugopal also referred to a judgement by a five-judge constitution bench of the top court and said that the issues raised in the petitions were already being dealt with by the larger bench.
Regarding the court's query on setting up of an independent mechanism for determination of salaries and allowances of the MPs, the Attorney General said that elaborate procedure was already being followed for fixing the salary.
During the hearing, when an advocate representing one of the petitioners raised the issue of "burden on the exchequer" due to payment of pension and entitlement of several other facilities to former MPs, the bench asked, "Do you have any data of how much amount has been spent on it?"
The lawyer said that they would place the data in this regard before the top court.
The counsel also contended that even after death of an MP, his or her family members were entitled to pension for life.
When the issue of MPs determining their salaries themselves was raked up, the bench said, "it is a moral, ethical issue. The second is propriety issue that they fix it (salary) themselves".
The bench also dealt with the arguments advanced by the petitioners that pension was given to a MP even if he or she was elected to the House only for a day.
It observed that several MPs have got successive tenures in the parliament and they have dedicated their "whole life".
S N Shukla, general secretary of petitioner NGO 'Lok Prahari', argued in the court that earlier the MPs were entitled for pension after having a tenure of four years in the House but this has now changed and even if a person was elected as an MP for a day, he or she was entitled for pension and other facilities.
When the petitioners raised the issue of increase in the assets of lawmakers, the bench this was already been dealt with by the top court.
Regarding the arguments that lawmakers were not prohibited from carrying out their professional works, including practice as advocates, the bench said, "it would not be appropriate for us to comment on this is pending".
The top court observed that lawmakers were entitled for salary and allowances so that they could maintain themselves in a dignified manner and even after a sitting MP or MLA loses election, he or she has to be in constant touch with the people and move around.
The arguments in the matter remained inconclusive and the court has fixed the case for tomorrow.
The court had last month directed the Centre to clarify its stand on setting up of an independent mechanism for determination of salaries and allowances of the MPs after the government had said the issue was "under consideration".
The top court had in March last year agreed to examine the constitutional validity of laws granting pension and other perks to retired MPs and had sought responses from the Centre and ECI on the issue.
The NGO has approached the top court challenging the Allahabad High Court order dismissing its plea which had claimed that pension and other perks being given to MPs even after demitting office were contrary to Article 14 (Right to Equality) of the Constitution.
The plea has also said that parliament has no power to provide for pensionary benefits to lawmakers without making any law.
It has also claimed in the plea that pension and other amenities granted to ex-MPs were "unreasonable" and sought withdrawal of such facilities, while questioning various provisions of the law framed by parliament.
The top court observed this while hearing a petition which has raised several questions including how MPs could themselves determine their salaries and perks and also sought scrapping of pension to them.
Attorney General K K Venugopal told a bench comprising justices J Chelameswar and Sanjay Kishan Kaul that the Finance Bill 2018 contained provisions regarding salary and pension of MPs and also about revision of their allowances after every five years starting from 1 April 2023 on the basis of cost inflation index.
Mr Venugopal also referred to a judgement by a five-judge constitution bench of the top court and said that the issues raised in the petitions were already being dealt with by the larger bench.
Regarding the court's query on setting up of an independent mechanism for determination of salaries and allowances of the MPs, the Attorney General said that elaborate procedure was already being followed for fixing the salary.
During the hearing, when an advocate representing one of the petitioners raised the issue of "burden on the exchequer" due to payment of pension and entitlement of several other facilities to former MPs, the bench asked, "Do you have any data of how much amount has been spent on it?"
The lawyer said that they would place the data in this regard before the top court.
The counsel also contended that even after death of an MP, his or her family members were entitled to pension for life.
When the issue of MPs determining their salaries themselves was raked up, the bench said, "it is a moral, ethical issue. The second is propriety issue that they fix it (salary) themselves".
The bench also dealt with the arguments advanced by the petitioners that pension was given to a MP even if he or she was elected to the House only for a day.
It observed that several MPs have got successive tenures in the parliament and they have dedicated their "whole life".
S N Shukla, general secretary of petitioner NGO 'Lok Prahari', argued in the court that earlier the MPs were entitled for pension after having a tenure of four years in the House but this has now changed and even if a person was elected as an MP for a day, he or she was entitled for pension and other facilities.
When the petitioners raised the issue of increase in the assets of lawmakers, the bench this was already been dealt with by the top court.
Regarding the arguments that lawmakers were not prohibited from carrying out their professional works, including practice as advocates, the bench said, "it would not be appropriate for us to comment on this is pending".
The top court observed that lawmakers were entitled for salary and allowances so that they could maintain themselves in a dignified manner and even after a sitting MP or MLA loses election, he or she has to be in constant touch with the people and move around.
The arguments in the matter remained inconclusive and the court has fixed the case for tomorrow.
The court had last month directed the Centre to clarify its stand on setting up of an independent mechanism for determination of salaries and allowances of the MPs after the government had said the issue was "under consideration".
The top court had in March last year agreed to examine the constitutional validity of laws granting pension and other perks to retired MPs and had sought responses from the Centre and ECI on the issue.
The NGO has approached the top court challenging the Allahabad High Court order dismissing its plea which had claimed that pension and other perks being given to MPs even after demitting office were contrary to Article 14 (Right to Equality) of the Constitution.
The plea has also said that parliament has no power to provide for pensionary benefits to lawmakers without making any law.
It has also claimed in the plea that pension and other amenities granted to ex-MPs were "unreasonable" and sought withdrawal of such facilities, while questioning various provisions of the law framed by parliament.
Business Affairs
Nirav Modi's Firestar Diamond challenges money laundering case in Delhi HC
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Nirav Modi-owned Firestar Diamond has moved the Delhi High Court on Tuesday, challenging a money laundering case filed by the Enforcement Directorate (ED) in relation to the Punjab National Bank scam. Nirav Modi is the prime accused in the Rs 12,700 crore PNB fraud case.
In its plea to the Delhi HC, plaintiff Firestar Diamiond International Private Ltd has requested that the Ministry of Finance and the ED provide them a copy of the search warrants. The central agency had raided stores of Nirav Modi brand under Firestar Diamond and seized jewellery and precious stones worth thousands of crores of rupees to recover the defrauded amount.
PNB, in a stock filing last month, had disclosed a scam amounting to Rs 11,400 crore, carried out in connivance with its employees. The Central Bureau of Investigation (CBI) had later filed an FIR on complaint from the private sector bank. Based on this FIR, the ED had lodged a case of money laundering against Nirav Modi and his accomplices for their alleged involvement in the PNB fraud case.
Absconding diamond businessman Nirav Modi and his maternal uncle Mehul Choksi are being probed by several investigative agencies after the PNB scam came to light. Several bank employees involved in the sccam have been nabbed already.
Nirav Modi is accused of availing loans which are estimated to top Rs 12,000 crore via fraudulent Letters of Undertaking (LoU) by PNB's Brady House branch in Mumbai. The loans were acquired from foreign branches of Indian banks against these LoUs, but were not paid back.
Meanwhile, the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs summoned the ICICI Bank CEO Chanda Kochhar and Axis Bank MD Shikha Sharma on Tuesday in relation to the probe in Mehul Choksi's Gitanjali Gems fraud. BSE has also sought clarification from both Axis Bank and ICICI Bank on their top brass being probed by SFIO.
"They have been summoned for giving the loan facility to Gitanjali Group. Our intention is to get the information from these two banks. We would like to question both of them," the SFIO later said in a statement.
ICICI Bank led the 31-bank consortium that extended credit to the tune of Rs 5280 crore to Mehul Choksi's Gitanjali Group. ICICI Bank alone had given Rs 405 crore loan to Gitanjali Gems. According to media reports, top bank executives are only being questioned for clarifications and are not accused in the loan fraud case.
The CBI had earlier questioned ICICI Bank Executive Director NS Kanan as part of the investigation in India's biggest banking fraud.
In its plea to the Delhi HC, plaintiff Firestar Diamiond International Private Ltd has requested that the Ministry of Finance and the ED provide them a copy of the search warrants. The central agency had raided stores of Nirav Modi brand under Firestar Diamond and seized jewellery and precious stones worth thousands of crores of rupees to recover the defrauded amount.
PNB, in a stock filing last month, had disclosed a scam amounting to Rs 11,400 crore, carried out in connivance with its employees. The Central Bureau of Investigation (CBI) had later filed an FIR on complaint from the private sector bank. Based on this FIR, the ED had lodged a case of money laundering against Nirav Modi and his accomplices for their alleged involvement in the PNB fraud case.
Absconding diamond businessman Nirav Modi and his maternal uncle Mehul Choksi are being probed by several investigative agencies after the PNB scam came to light. Several bank employees involved in the sccam have been nabbed already.
Nirav Modi is accused of availing loans which are estimated to top Rs 12,000 crore via fraudulent Letters of Undertaking (LoU) by PNB's Brady House branch in Mumbai. The loans were acquired from foreign branches of Indian banks against these LoUs, but were not paid back.
Meanwhile, the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs summoned the ICICI Bank CEO Chanda Kochhar and Axis Bank MD Shikha Sharma on Tuesday in relation to the probe in Mehul Choksi's Gitanjali Gems fraud. BSE has also sought clarification from both Axis Bank and ICICI Bank on their top brass being probed by SFIO.
"They have been summoned for giving the loan facility to Gitanjali Group. Our intention is to get the information from these two banks. We would like to question both of them," the SFIO later said in a statement.
ICICI Bank led the 31-bank consortium that extended credit to the tune of Rs 5280 crore to Mehul Choksi's Gitanjali Group. ICICI Bank alone had given Rs 405 crore loan to Gitanjali Gems. According to media reports, top bank executives are only being questioned for clarifications and are not accused in the loan fraud case.
The CBI had earlier questioned ICICI Bank Executive Director NS Kanan as part of the investigation in India's biggest banking fraud.
Stocks trading less than their face value: Risky bets for the investment portfolio
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Out of 7,659 listed companies, 284 stocks were trading at a discount to their face value on 1 March 2018. Most of such companies are from finance sector (47 companies) followed by textile sector (31 companies) and trading sector (30 companies). Seven companies are mid caps with market cap between Rs 500 crores to Rs 6,200 crores and rest all are small caps with market cap less than Rs 500 crores. Let us look at the top five stocks that are trading below their face value and have delivered highest returns in the last one year. Although, the returns appear attractive in percentage terms, one should be careful while investing in such penny stocks because of the high risk involved. Most of these stocks have reported disappointing numbers in Q3FY18.
Bampsl Securities: The company is engaged in the business of dealing and investing in shares and other securities. It also provides financial services, such as spot financing, short term and long term financial accommodation, and other financial services. On 1 March 2018, the stock was trading at over 81 per cent discount to its face value. In Q3FY18, company's top-line grew by 6.7 per cent. However, due to substantial jump in total expenditure by over 14.5 per cent, its net profit fell by over 12 per cent. The stock delivered 633.6 per cent returns between 1 March 2017 and 1 March 2018. BSE small cap delivered 31.5 per cent returns in the same period.
Lesha Industries: The company is engaged in trading and manufacturing of steel products, and information technology and related services. In the IT space, the company offers solutions for Internet access, web solutions, networking and communication, and data entry operations. On 1 March 2018, the stock was trading at 4 per cent discount to the face value. The company posted net sales of Rs 1.6 crores in Q3FY18. Its net loss widened from Rs 4 lakhs in Q3FY17 to Rs 6 lakhs in Q3FY18. The stock delivered 303 per cent returns in the last one year and outperformed the BSE smallcap index by 9.6 times.
Padmalaya Telefilms: The company is in the business of film production with a network of film distribution at major centres in India and Film Exhibition network in Andhra Pradesh. The stock was trading at 52 per cent discount to its face value on 1 March 2018. The company reported disappointing numbers for Q3 with its top line falling by over 22 per cent. It failed to generate any net profit in Q3. In the last one year, the stock delivered 242 per cent returns and outperformed the BSE small cap index by over 7.6 times.
Zenith Birla: It is manufacturer and exporter of steel pipes that exports its products to countries like the US, Europe, Middle East, Africa. The current stock price is at 84 per cent discount to its face value. In Q3FY18, the top line grew by 158.3 per cent. It narrowed its net loss to Rs -1.76 crores in Q3FY18 compared to net loss of Rs -8.48 crores in Q3FY17. The stock delivered 151 per cent returns in the last one year and outperformed BSE Smallcap index by 4.8 times.
Alka Securities: It is a financial services company that offers corporate advisory and capital syndication services. It operates in the wholesale debt market primarily in government securities. On 1 March 2018, the stock price was at 52 per cent discount to its face value. In Q3, the company made a meagre profit of Rs 3 lakhs. In the last one year, the stock delivered 140 per cent returns and outperformed BSE Small Cap Index by over 4.4 times.
Bampsl Securities: The company is engaged in the business of dealing and investing in shares and other securities. It also provides financial services, such as spot financing, short term and long term financial accommodation, and other financial services. On 1 March 2018, the stock was trading at over 81 per cent discount to its face value. In Q3FY18, company's top-line grew by 6.7 per cent. However, due to substantial jump in total expenditure by over 14.5 per cent, its net profit fell by over 12 per cent. The stock delivered 633.6 per cent returns between 1 March 2017 and 1 March 2018. BSE small cap delivered 31.5 per cent returns in the same period.
Lesha Industries: The company is engaged in trading and manufacturing of steel products, and information technology and related services. In the IT space, the company offers solutions for Internet access, web solutions, networking and communication, and data entry operations. On 1 March 2018, the stock was trading at 4 per cent discount to the face value. The company posted net sales of Rs 1.6 crores in Q3FY18. Its net loss widened from Rs 4 lakhs in Q3FY17 to Rs 6 lakhs in Q3FY18. The stock delivered 303 per cent returns in the last one year and outperformed the BSE smallcap index by 9.6 times.
Padmalaya Telefilms: The company is in the business of film production with a network of film distribution at major centres in India and Film Exhibition network in Andhra Pradesh. The stock was trading at 52 per cent discount to its face value on 1 March 2018. The company reported disappointing numbers for Q3 with its top line falling by over 22 per cent. It failed to generate any net profit in Q3. In the last one year, the stock delivered 242 per cent returns and outperformed the BSE small cap index by over 7.6 times.
Zenith Birla: It is manufacturer and exporter of steel pipes that exports its products to countries like the US, Europe, Middle East, Africa. The current stock price is at 84 per cent discount to its face value. In Q3FY18, the top line grew by 158.3 per cent. It narrowed its net loss to Rs -1.76 crores in Q3FY18 compared to net loss of Rs -8.48 crores in Q3FY17. The stock delivered 151 per cent returns in the last one year and outperformed BSE Smallcap index by 4.8 times.
Alka Securities: It is a financial services company that offers corporate advisory and capital syndication services. It operates in the wholesale debt market primarily in government securities. On 1 March 2018, the stock price was at 52 per cent discount to its face value. In Q3, the company made a meagre profit of Rs 3 lakhs. In the last one year, the stock delivered 140 per cent returns and outperformed BSE Small Cap Index by over 4.4 times.
Bio-jet fuel is definitely cleaner, but expensive for airlines in India to afford
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The global aviation body IATA (International Air Transport Association) recently set out a target for one billion passengers to fly on aircraft using a mix of clean energy and fossil fuels by 2025. It seems stretched because, as per IATA's own admission, the current developments in bio-fuel space, both at the airlines- and airports-level, it is estimated nearly half a billion passengers will fly on blended sustainable aviation fuel (SAF) by 2025. To put it into context, some 4.1 billion people flew last year globally.
From the first flight - a Virgin Atlantic Boeing 747 flew from London to Amsterdam - way back in 2008, there's surge in the number of airlines taking the bio-jet fuel path, including Cathay Pacific, JetBlue, Lufthansa, Qantas, and United Airlines who have made significant investments by forward-purchasing 1.5 billion gallons of SAF. Some airports such as Oslo, Stockholm, Brisbane and Los Angeles are already mixing SAF with the regular jet fuel.
In India, the efforts to shift to cleaner fuel are largely on papers, and the reasons are financial in nature. For instance, the aviation turbine fuel accounts for roughly 30-40 per cent of the total operating cost of an airline. The bio-jet fuel, which is prepared from inedible oils and fats, is 60-70 per cent more expensive than conventional jet fuel. A change in the ATF (aviation turbine fuel) mix could bump up cost of operations for airlines, and affect their bottomlines. The aviation is a cyclical business. The airlines in India are in good shape after several years of pain, thanks to low fuel prices and stupendous passenger growth over the past three years. They are more risk-averse at this point of time, say experts.
The national civil aviation policy 2016 talks about sustainable aviation while missing out on specific details on bio-jet fuel. "The ministry of civil aviation will work with DGCA, ministry of environment, forest and climate change, and industry stakeholders to develop an appropriate action plan. The ministry will strengthen policy guidelines on energy conservation and sustainable practice...," the policy says.
In 2017, some 100,000 flights were flown on bio-jet fuel across the globe, and IATA expects this number to hit one million flights by 2020. A flight completely powered by SAF has the potential to reduce carbon emissions by up to 80 per cent. The non-availability of bio-jet fuel and lack of interest from the government will perhaps make India the late adopters of the SAF.
From the first flight - a Virgin Atlantic Boeing 747 flew from London to Amsterdam - way back in 2008, there's surge in the number of airlines taking the bio-jet fuel path, including Cathay Pacific, JetBlue, Lufthansa, Qantas, and United Airlines who have made significant investments by forward-purchasing 1.5 billion gallons of SAF. Some airports such as Oslo, Stockholm, Brisbane and Los Angeles are already mixing SAF with the regular jet fuel.
In India, the efforts to shift to cleaner fuel are largely on papers, and the reasons are financial in nature. For instance, the aviation turbine fuel accounts for roughly 30-40 per cent of the total operating cost of an airline. The bio-jet fuel, which is prepared from inedible oils and fats, is 60-70 per cent more expensive than conventional jet fuel. A change in the ATF (aviation turbine fuel) mix could bump up cost of operations for airlines, and affect their bottomlines. The aviation is a cyclical business. The airlines in India are in good shape after several years of pain, thanks to low fuel prices and stupendous passenger growth over the past three years. They are more risk-averse at this point of time, say experts.
The national civil aviation policy 2016 talks about sustainable aviation while missing out on specific details on bio-jet fuel. "The ministry of civil aviation will work with DGCA, ministry of environment, forest and climate change, and industry stakeholders to develop an appropriate action plan. The ministry will strengthen policy guidelines on energy conservation and sustainable practice...," the policy says.
In 2017, some 100,000 flights were flown on bio-jet fuel across the globe, and IATA expects this number to hit one million flights by 2020. A flight completely powered by SAF has the potential to reduce carbon emissions by up to 80 per cent. The non-availability of bio-jet fuel and lack of interest from the government will perhaps make India the late adopters of the SAF.
Sensex closes 429 points lower at 33,317, Nifty falls 109 points; banking stocks sink after SFIO summons ICICI, Axis Bank chiefs in Gitanjali Gems fraud case
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The Rs 12,600-crore PNB fraud continued to haunt the market with banking stocks taking a huge plunge during the last hour of trade after Serious Fraud Investigation Office (SFIO) of the Ministry of Corporate Affairs summoned ICICI Bank CEO Chanda Kochhar and Axis Bank MD Shikha Sharma in relation to probe in Mehul Choksi's Gitanjali Gems fraud.
While the Sensex closed 429 points or 1.27% lower at 33,317, the Nifty fell 109 points or 1.06% to 10,249 level. Banking stocks took the plunge with the BSE Bankex falling 401 points or 1.44% to 27,551 level. SBI (2.77%), ICICI Bank (2.64%), Bank of Baroda (2.45%) were the top losers on the index after the news of SFIO summoning the chiefs of two private lenders came in. Bank Nifty fell 370 points or 1.49% to 24,448 level. Other major sectoral losers were BSE auto (1.36%) and capital goods indices (1.31%).
Karthikraj Lakshmanan, Senior Fund Manager-Equities, BNP Paribas Mutual Fund said, "Key indices in India opened the session on a strong footing on firm global cues. Global stocks gained as worries about a potential trade war waned in the aftermath of US President Donald Trump's tariff announcement on steel and aluminum. However, Indian bourses were unable to sustain gains as weakness persisted. Investors continued to trade with caution and sell on every rise. Despite earlier gains both the benchmark Sensex and the Nifty finally closed the day with losses of over 0.50%. Barring the media index, all other sectoral indices on the National Stock Exchange (NSE) traded in the red, with a majority of them losing over 1% for the day."
On the Sensex, Sun Pharma (2.95%), SBI (2.77%) and ICICI Bank (2.64%) were the top losers. Market breadth was negative with 649 stocks closing in the green against 2059 ending in the red. 147 stocks were unchanged.
Global stocks
Global stock markets surged Tuesday despite US-Chinese trade tensions after Wall Street posted its strongest gains in a week.
In early trading, Frankfurt's DAX rose 0.9 percent to 12,204.12 points and London's FTSE 100 gained 0.9 percent to 7,179.37. France's CAC 40 added 0.5 percent to 5,193.16. On Monday, the DAX advanced 1.5 percent, the FTSE 100 rose 0.7 percent and the CAC 40 added 0.6 percent. On Wall Street, futures for the Dow Jones industrial average and Standard & Poor's 500 index rose 0.2 percent.
ASIA'S DAY: Tokyo's Nikkei 225 rose 1.8 percent to 21,417.76 and Hong Kong's Hang Seng advanced 2.1 percent to 30,510.73. The Shanghai Composite Index added 1 percent to 3,289.64 and Seoul's Kospi was up 1.5 percent at 2,411.41. Sydney's S&P-ASX 200 gained 1.1 percent to 5,962.40 and benchmarks in Taiwan, New Zealand and Singapore also rose. India's Sensex shed 0.2 percent to 33,684.56 while Jakarta and Manila also declined.
While the Sensex closed 429 points or 1.27% lower at 33,317, the Nifty fell 109 points or 1.06% to 10,249 level. Banking stocks took the plunge with the BSE Bankex falling 401 points or 1.44% to 27,551 level. SBI (2.77%), ICICI Bank (2.64%), Bank of Baroda (2.45%) were the top losers on the index after the news of SFIO summoning the chiefs of two private lenders came in. Bank Nifty fell 370 points or 1.49% to 24,448 level. Other major sectoral losers were BSE auto (1.36%) and capital goods indices (1.31%).
Karthikraj Lakshmanan, Senior Fund Manager-Equities, BNP Paribas Mutual Fund said, "Key indices in India opened the session on a strong footing on firm global cues. Global stocks gained as worries about a potential trade war waned in the aftermath of US President Donald Trump's tariff announcement on steel and aluminum. However, Indian bourses were unable to sustain gains as weakness persisted. Investors continued to trade with caution and sell on every rise. Despite earlier gains both the benchmark Sensex and the Nifty finally closed the day with losses of over 0.50%. Barring the media index, all other sectoral indices on the National Stock Exchange (NSE) traded in the red, with a majority of them losing over 1% for the day."
On the Sensex, Sun Pharma (2.95%), SBI (2.77%) and ICICI Bank (2.64%) were the top losers. Market breadth was negative with 649 stocks closing in the green against 2059 ending in the red. 147 stocks were unchanged.
Global stocks
Global stock markets surged Tuesday despite US-Chinese trade tensions after Wall Street posted its strongest gains in a week.
In early trading, Frankfurt's DAX rose 0.9 percent to 12,204.12 points and London's FTSE 100 gained 0.9 percent to 7,179.37. France's CAC 40 added 0.5 percent to 5,193.16. On Monday, the DAX advanced 1.5 percent, the FTSE 100 rose 0.7 percent and the CAC 40 added 0.6 percent. On Wall Street, futures for the Dow Jones industrial average and Standard & Poor's 500 index rose 0.2 percent.
ASIA'S DAY: Tokyo's Nikkei 225 rose 1.8 percent to 21,417.76 and Hong Kong's Hang Seng advanced 2.1 percent to 30,510.73. The Shanghai Composite Index added 1 percent to 3,289.64 and Seoul's Kospi was up 1.5 percent at 2,411.41. Sydney's S&P-ASX 200 gained 1.1 percent to 5,962.40 and benchmarks in Taiwan, New Zealand and Singapore also rose. India's Sensex shed 0.2 percent to 33,684.56 while Jakarta and Manila also declined.
LVPEI, other non-governmental entities to evolve alternate healthcare model
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In an attempt towards creating an alternate model of healthcare, which is strong at primary and secondary level but still not-for-profit, a newly formed think tank under LVPEI, Dhan Foundation and the Indian School of Business (ISB) held its first meeting in Hyderabad on Tuesday.
The experts discussed the formation of a model that is collaborative with like-minded institutions trying to make an impact across various verticals of healthcare.
Total 10 organisations participated in the meeting, including Doctors for Seva, Fernandez Hospital, NanoHealth Saksham, Ameya Life, DHAN Foundation and LVPEI (LV Prasad Eye Institute) among others.
"The idea is to cross-learn from the eye care model of LVPEI and implement in other areas," said DVR Seshadri, professor at the Indian School of Business. Seshadri is also working on a book on the LVPEI model. Explaining the LVPEI model, GN Rao, chairman of LVPEI, said it was focused on economically disadvantaged groups in rural and urban areas with a pyramid style services through its satellite clinics and rural affiliates.
A not-for-profit and non-government eye care institution, LVPEI has a centre for excellence in Hyderabad, three tertiary centres - one each in Bhubaneswar, Visakhapatnam and Vijayawada - and 17 secondary and 171 primary care centres. These centres also cover the rural areas across Telangana, Andhra Pradesh, Odisha and Karnataka.
Rao said the model had worked well for the 30-year-old organisation, and that it could help to take learning to other areas. "No more than 10 to 15 per cent of the problems need to reach the big tertiary hospitals," he said, adding that one does not need "specialists in remote locations" as primary care can be provided with good quality if there are "well-trained paramedics".
The DHAN (Development of Human Action) Foundation, which focuses on livelihood promotion, was represented by its founder MP Vasimalai. In existence since 1997, it has so far impacted 1.65 million poor households across 14 states.
The experts discussed the formation of a model that is collaborative with like-minded institutions trying to make an impact across various verticals of healthcare.
Total 10 organisations participated in the meeting, including Doctors for Seva, Fernandez Hospital, NanoHealth Saksham, Ameya Life, DHAN Foundation and LVPEI (LV Prasad Eye Institute) among others.
"The idea is to cross-learn from the eye care model of LVPEI and implement in other areas," said DVR Seshadri, professor at the Indian School of Business. Seshadri is also working on a book on the LVPEI model. Explaining the LVPEI model, GN Rao, chairman of LVPEI, said it was focused on economically disadvantaged groups in rural and urban areas with a pyramid style services through its satellite clinics and rural affiliates.
A not-for-profit and non-government eye care institution, LVPEI has a centre for excellence in Hyderabad, three tertiary centres - one each in Bhubaneswar, Visakhapatnam and Vijayawada - and 17 secondary and 171 primary care centres. These centres also cover the rural areas across Telangana, Andhra Pradesh, Odisha and Karnataka.
Rao said the model had worked well for the 30-year-old organisation, and that it could help to take learning to other areas. "No more than 10 to 15 per cent of the problems need to reach the big tertiary hospitals," he said, adding that one does not need "specialists in remote locations" as primary care can be provided with good quality if there are "well-trained paramedics".
The DHAN (Development of Human Action) Foundation, which focuses on livelihood promotion, was represented by its founder MP Vasimalai. In existence since 1997, it has so far impacted 1.65 million poor households across 14 states.
General Awareness
Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential.
Panel to study issues in Fintech space
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Context: The Centre has set up a steering committee to go into various issues relating to Fintech space in India. The committee will be headed by Subhash Chandra Garg, Secretary, Department of Economic Affairs.
Terms of reference:
The committee will work with government agencies such as UIDAI to explore creation and use of unique enterprise identification number.
It will also look into the possibility of international co-operation opportunities in Fintech with countries such as Singapore, the U.K., China and others.
The committee will consider means of using data with GSTN and data residing with information utilities such as credit information companies (CICs) and others in open domain with a view to developing applications for financing of micro, small and medium enterprises (MSMEs).
It will also develop regulatory interventions e.g., regulatory sandbox model, that will enhance the role of Fintech in sectors identified for focused interventions. The ideas is to facilitate ease of doing business in the Fintech sector.
What is Fintech?
Fintech Or financial technology is the industry known for championing software and technology in the financial sector. A very broad term, it includes anything from a bank ATM, to software used to help spot manipulation of securities markets.
Why is it important?
India has a large population of non-city folk, many million small enterprises and any number of small borrowers without any credit history, who today cannot knock at the banks’ doors for loans. It is therefore said to be just ripe for a Fintech revolution. To help things along, the Government is expediting this by promoting the JAM trinity (Jan Dhan, Aadhar, Mobile).
The reason why banking bigwigs are watching these developments like hawks is that Fintech has enormous power to disrupt old-world banks. They mostly function as online bazaars that simply put borrowers in touch with lenders or entrepreneurs with investors, while they pocket a fee on each transaction.
Context: The Centre has set up a steering committee to go into various issues relating to Fintech space in India. The committee will be headed by Subhash Chandra Garg, Secretary, Department of Economic Affairs.
Terms of reference:
The committee will work with government agencies such as UIDAI to explore creation and use of unique enterprise identification number.
It will also look into the possibility of international co-operation opportunities in Fintech with countries such as Singapore, the U.K., China and others.
The committee will consider means of using data with GSTN and data residing with information utilities such as credit information companies (CICs) and others in open domain with a view to developing applications for financing of micro, small and medium enterprises (MSMEs).
It will also develop regulatory interventions e.g., regulatory sandbox model, that will enhance the role of Fintech in sectors identified for focused interventions. The ideas is to facilitate ease of doing business in the Fintech sector.
What is Fintech?
Fintech Or financial technology is the industry known for championing software and technology in the financial sector. A very broad term, it includes anything from a bank ATM, to software used to help spot manipulation of securities markets.
Why is it important?
India has a large population of non-city folk, many million small enterprises and any number of small borrowers without any credit history, who today cannot knock at the banks’ doors for loans. It is therefore said to be just ripe for a Fintech revolution. To help things along, the Government is expediting this by promoting the JAM trinity (Jan Dhan, Aadhar, Mobile).
The reason why banking bigwigs are watching these developments like hawks is that Fintech has enormous power to disrupt old-world banks. They mostly function as online bazaars that simply put borrowers in touch with lenders or entrepreneurs with investors, while they pocket a fee on each transaction.
Terms of reference:
The committee will work with government agencies such as UIDAI to explore creation and use of unique enterprise identification number.
It will also look into the possibility of international co-operation opportunities in Fintech with countries such as Singapore, the U.K., China and others.
The committee will consider means of using data with GSTN and data residing with information utilities such as credit information companies (CICs) and others in open domain with a view to developing applications for financing of micro, small and medium enterprises (MSMEs).
It will also develop regulatory interventions e.g., regulatory sandbox model, that will enhance the role of Fintech in sectors identified for focused interventions. The ideas is to facilitate ease of doing business in the Fintech sector.
What is Fintech?
Fintech Or financial technology is the industry known for championing software and technology in the financial sector. A very broad term, it includes anything from a bank ATM, to software used to help spot manipulation of securities markets.
Why is it important?
India has a large population of non-city folk, many million small enterprises and any number of small borrowers without any credit history, who today cannot knock at the banks’ doors for loans. It is therefore said to be just ripe for a Fintech revolution. To help things along, the Government is expediting this by promoting the JAM trinity (Jan Dhan, Aadhar, Mobile).
The reason why banking bigwigs are watching these developments like hawks is that Fintech has enormous power to disrupt old-world banks. They mostly function as online bazaars that simply put borrowers in touch with lenders or entrepreneurs with investors, while they pocket a fee on each transaction.
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