General Affairs
Sonia Gandhi, Oscar Fernandes Move High Court In National Herald IT Case
-
Former Congress President Sonia Gandhi and party leader Oscar Fernandes today moved the Delhi High Court challenging the reopening of their assessments by the Income tax Department regarding the Young Indian-National Herald transactions.
The separate petitions filed by Mrs Gandhi and Mr Fernandes are listed for hearing tomorrow before a bench of Justices S Ravindra Bhat and AK Chawla.
A similar plea filed earlier by Congress President Rahul Gandhi is also listed for hearing tomorrow before the same bench.
The court had on August 8, listed Rahul Gandhi's plea for hearing tomorrow after Additional Solicitor General (ASG) Tushar Mehta had opposed issuance of any interim order by the court.
The bench had rejected the oral plea of Mr Gandhi's lawyers to prohibit the media from reporting or publishing the court proceedings.
According to the tax department, Mr Gandhi's assessment for the years 2011-12 was decided to be reopened as he did not disclose that he was a director in the company -- Young Indian Pvt Ltd (YI) -- since 2010.
As per the department, the shares Rahul Gandhi has in YI would lead him to have an income of Rs. 154 crore and not about Rs. 68 lakh, as was assessed by it earlier.
The department has in the instant case applied section 147 of the Income Tax Act, which provides for bringing under the tax net any income which has escaped assessment in the original assessment.
Rahul Gandhi's lawyers had said the query put to their client during the scrutiny of his assessment was whether he had any interest in any company or sister concern in which he was a director. He had replied in the negative as YI was a Section 25 company, a non-profit entity, and hence no director would have any interest in it.
The tax department has already issued a demand notice for Rs. 249.15 crore to YI for the assessment year 2011-12.
YI, which was incorporated in November 2010 with a capital of Rs. 50 lakh, had acquired almost all the shareholding of Associated Journal Ltd (AJL), the owner of the National Herald newspaper.
The IT department's move followed its probe on a complaint alleging that the Gandhis had misappropriated AJL's assets while transferring their shares to the newly formed Young Indian.
BJP MP Subramanian Swamy, in a private criminal complaint filed before a trial court, had accused Sonia and Rahul Gandhi and others of conspiring to cheat and misappropriate funds by paying just Rs. 50 lakh, through which the YI had obtained the right to recover Rs. 90.25 crore which the AJL owed to the Congress party.
All the accused, also including Motilal Vora, Oscar Fernandes, Suman Dubey and Sam Pitroda, have denied the allegations levelled against them.
The separate petitions filed by Mrs Gandhi and Mr Fernandes are listed for hearing tomorrow before a bench of Justices S Ravindra Bhat and AK Chawla.
A similar plea filed earlier by Congress President Rahul Gandhi is also listed for hearing tomorrow before the same bench.
The court had on August 8, listed Rahul Gandhi's plea for hearing tomorrow after Additional Solicitor General (ASG) Tushar Mehta had opposed issuance of any interim order by the court.
The bench had rejected the oral plea of Mr Gandhi's lawyers to prohibit the media from reporting or publishing the court proceedings.
According to the tax department, Mr Gandhi's assessment for the years 2011-12 was decided to be reopened as he did not disclose that he was a director in the company -- Young Indian Pvt Ltd (YI) -- since 2010.
As per the department, the shares Rahul Gandhi has in YI would lead him to have an income of Rs. 154 crore and not about Rs. 68 lakh, as was assessed by it earlier.
The department has in the instant case applied section 147 of the Income Tax Act, which provides for bringing under the tax net any income which has escaped assessment in the original assessment.
Rahul Gandhi's lawyers had said the query put to their client during the scrutiny of his assessment was whether he had any interest in any company or sister concern in which he was a director. He had replied in the negative as YI was a Section 25 company, a non-profit entity, and hence no director would have any interest in it.
The tax department has already issued a demand notice for Rs. 249.15 crore to YI for the assessment year 2011-12.
YI, which was incorporated in November 2010 with a capital of Rs. 50 lakh, had acquired almost all the shareholding of Associated Journal Ltd (AJL), the owner of the National Herald newspaper.
The IT department's move followed its probe on a complaint alleging that the Gandhis had misappropriated AJL's assets while transferring their shares to the newly formed Young Indian.
BJP MP Subramanian Swamy, in a private criminal complaint filed before a trial court, had accused Sonia and Rahul Gandhi and others of conspiring to cheat and misappropriate funds by paying just Rs. 50 lakh, through which the YI had obtained the right to recover Rs. 90.25 crore which the AJL owed to the Congress party.
All the accused, also including Motilal Vora, Oscar Fernandes, Suman Dubey and Sam Pitroda, have denied the allegations levelled against them.
Somnath Chatterjee's Family Rejects Request To Drape Body With Red Flag
-
Former Lok Sabha Speaker Somnath Chatterjee's family on Monday turned down the request of the CPI-M leadership to drape the expelled member's body in the red flag and allow him to be taken to the party's West Bengal state headquarters in Kolkata for people to pay their last respects.
"The party had requested us that they want to take the body to the state headquarters for partymen to pay their respects. But we said, we don't want. The party had requested us that they wanted to drape the body with red flag. We refused," Mr Chatterjee's daughter Anushila Basu said.
Mr Chatterjee, a ten time Lok Sabha member -- nine times as a CPI-M candidate and once as an independent backed by the party -- was expelled on July 23, 2008, for refusing to step down as the Lok Sabha Speaker after the party withdrew support to the UPA-1 government protesting against the India-US civil nuclear deal.
He died at a Kolkata nursing home on Monday, aged 89.
Ms Anushila recalled that she had seen her father shed tears the day the party expelled him.
She still vividly remembers the day the CPI-M politburo took the decision.
"I was in Delhi then. I told my father that from now on, you are a free bird. My father asked me whether he has been show caused? I told him the truth....After some time, I went to see him at his chamber. I found him sitting in his ante-chamber with tears rolling down his eyes," she said.
Anushila said neither Mr Chatterjee, nor any other family member, could accept the harsh decision.
However, she said Mr Chatterjee to the last had a deep love for the party.
"We often tried to provoke him to speak against the party. But he never uttered a word against the party. So deep was his fondness.
"The divorce was only on pen and paper. But mentally, he was not divorced from the party," she said.
Ms Anushila said a number of other parties and others had come to his father with many lucrative offers. "But his answer was always the same -- No".
CPI-M sources said as per the party constitution, an expelled member has to apply for his re-entry into the party. Feelers had been sent to Mr Chatterjee in that regard, but he refused to apply on his own. However, Mr Chatterjee had let it be known that he would be game if the party on its own took him back.
"Somnath da is Somnath da. He is incomparable. We had tried to resolve the issue. But it got stalled on a technicality," said CPI-M state secretariat member Rabin Deb.
"We continued to have regular connection/relation with him," said CPI-M state Secretary Surjya Kanta Mishra.
"The party had requested us that they want to take the body to the state headquarters for partymen to pay their respects. But we said, we don't want. The party had requested us that they wanted to drape the body with red flag. We refused," Mr Chatterjee's daughter Anushila Basu said.
Mr Chatterjee, a ten time Lok Sabha member -- nine times as a CPI-M candidate and once as an independent backed by the party -- was expelled on July 23, 2008, for refusing to step down as the Lok Sabha Speaker after the party withdrew support to the UPA-1 government protesting against the India-US civil nuclear deal.
He died at a Kolkata nursing home on Monday, aged 89.
Ms Anushila recalled that she had seen her father shed tears the day the party expelled him.
She still vividly remembers the day the CPI-M politburo took the decision.
"I was in Delhi then. I told my father that from now on, you are a free bird. My father asked me whether he has been show caused? I told him the truth....After some time, I went to see him at his chamber. I found him sitting in his ante-chamber with tears rolling down his eyes," she said.
Anushila said neither Mr Chatterjee, nor any other family member, could accept the harsh decision.
However, she said Mr Chatterjee to the last had a deep love for the party.
"We often tried to provoke him to speak against the party. But he never uttered a word against the party. So deep was his fondness.
"The divorce was only on pen and paper. But mentally, he was not divorced from the party," she said.
Ms Anushila said a number of other parties and others had come to his father with many lucrative offers. "But his answer was always the same -- No".
CPI-M sources said as per the party constitution, an expelled member has to apply for his re-entry into the party. Feelers had been sent to Mr Chatterjee in that regard, but he refused to apply on his own. However, Mr Chatterjee had let it be known that he would be game if the party on its own took him back.
"Somnath da is Somnath da. He is incomparable. We had tried to resolve the issue. But it got stalled on a technicality," said CPI-M state secretariat member Rabin Deb.
"We continued to have regular connection/relation with him," said CPI-M state Secretary Surjya Kanta Mishra.
This City Has The Cleanest Railway Station. None Of The Metros In Top 10
-
Rajasthan's Jodhpur and Marwar railway stations have emerged the cleanliest among the major stations in the country in the latest round of cleanliness assessment study.
While Jodhpur secured first position in A1 category stations for this year, Marwar took the pole position in A category, according to the study report released by Railway Minister Piyush Goyal today.
Both the stations fall under North Western Railway zone.
A1 and A category stations contribute 80 per cent of the passenger revenue. The stations are categorised as A1 and A based on revenue generated and footfalls.
Releasing the report, Mr Goyal suggested making the annual study a half-yearly exercise for bringing about greater competitiveness among the stations and ensuring a "test check" in maintaining cleanliness standards.
None of the major stations in the metros found a place in the top 10 list save for Anand Vihar in New Delhi which came in at fifth position.
New Delhi station was ranked 39th, a position it had held last year too.
In the A1 category, Jaipur has been ranked second and Tirupati in Andhra Pradesh ranked third. Vishakapatnam had emerged at the top in last year's ranking of the A1 category station. It has slid to 10th position this year.
Phulera in Rajasthan took the second place among A category stations, while Warangal in Telengana was ranked third.
When asked about the worst performing station in the cleanliness chart, Mr Goyal did not name the station but said the north central railway has come at the 16th place, indicating it was worst performing among all the zones in terms of cleanliness.
The railways is divided into 16 zones.
"Last year, it was at the 15th place. We will take it up," the minister said, highlighting the unique challenges confronting the zone.
"The zone is saturated, has overutilized infrastructure and passing through difficult times," he said.
The zone is headquartered in Allahabad and the routes passing through it have over 110 per cent capacity utilisation.
The North Western Railway topped in cleanliness zone-wise, followed by South Central Railway while East Coast Railway was ranked third.
According to the survey report, compared to 2017, there is nine per cent improvement in top 100 stations, 14 per cent in the next 100.
The cleanliness ranking, conducted by the Quality Council of India, was started in 2016. Since then, according to the study, there has been a significant improvement in the cleanliness aspect.
In 2017-18, average cleanliness of stations went up by 18 per cent, and 61 per cent of all citizens covered in the latest round of the study said the cleanliness was "above average", QCI chairman Adil Zainulbhai said.
Significantly, 47 per of the citizens felt train toilets are "cleaner now", he said.
According to the study, 39 stations scored over 90 per cent, a major jump given that last year none of them were in this bracket. Besides, 161 stations scored over 80 per cent in the latest survey.
The parameters adopted for conducting the survey were 'evaluation of process of cleanliness in parking, main entry area, main platform, waiting room, direct observation by QCI assessors of cleanliness and passenger feedback, with each of the parameters carrying 33.33 per cent.
While Jodhpur secured first position in A1 category stations for this year, Marwar took the pole position in A category, according to the study report released by Railway Minister Piyush Goyal today.
Both the stations fall under North Western Railway zone.
A1 and A category stations contribute 80 per cent of the passenger revenue. The stations are categorised as A1 and A based on revenue generated and footfalls.
Releasing the report, Mr Goyal suggested making the annual study a half-yearly exercise for bringing about greater competitiveness among the stations and ensuring a "test check" in maintaining cleanliness standards.
None of the major stations in the metros found a place in the top 10 list save for Anand Vihar in New Delhi which came in at fifth position.
New Delhi station was ranked 39th, a position it had held last year too.
In the A1 category, Jaipur has been ranked second and Tirupati in Andhra Pradesh ranked third. Vishakapatnam had emerged at the top in last year's ranking of the A1 category station. It has slid to 10th position this year.
Phulera in Rajasthan took the second place among A category stations, while Warangal in Telengana was ranked third.
When asked about the worst performing station in the cleanliness chart, Mr Goyal did not name the station but said the north central railway has come at the 16th place, indicating it was worst performing among all the zones in terms of cleanliness.
The railways is divided into 16 zones.
"Last year, it was at the 15th place. We will take it up," the minister said, highlighting the unique challenges confronting the zone.
"The zone is saturated, has overutilized infrastructure and passing through difficult times," he said.
The zone is headquartered in Allahabad and the routes passing through it have over 110 per cent capacity utilisation.
The North Western Railway topped in cleanliness zone-wise, followed by South Central Railway while East Coast Railway was ranked third.
According to the survey report, compared to 2017, there is nine per cent improvement in top 100 stations, 14 per cent in the next 100.
The cleanliness ranking, conducted by the Quality Council of India, was started in 2016. Since then, according to the study, there has been a significant improvement in the cleanliness aspect.
In 2017-18, average cleanliness of stations went up by 18 per cent, and 61 per cent of all citizens covered in the latest round of the study said the cleanliness was "above average", QCI chairman Adil Zainulbhai said.
Significantly, 47 per of the citizens felt train toilets are "cleaner now", he said.
According to the study, 39 stations scored over 90 per cent, a major jump given that last year none of them were in this bracket. Besides, 161 stations scored over 80 per cent in the latest survey.
The parameters adopted for conducting the survey were 'evaluation of process of cleanliness in parking, main entry area, main platform, waiting room, direct observation by QCI assessors of cleanliness and passenger feedback, with each of the parameters carrying 33.33 per cent.
Government Approves Procurement Of 6 Offshore Patrol Vessels For Navy
-
The defence ministry today approved a long-pending proposal to procure six indigenously manufactured next generation offshore patrol vessels (NGOPVs) for the Navy at a cost of Rs. 4,941 crore, officials said.
The go ahead for the project was given by the Defence Acquisition Council (DAC), the ministry's highest decision making body on procurement.
The meeting of the DAC was chaired by Defence Minister Nirmala Sitharaman.
The DAC accorded approval for the procurement of six indigenously designed and manufactured offshore patrol vessels at an approximate cost of Rs. 4,941 crore, the officials said.
The NGOPVs will be built in Indian shipyards and will be fitted with state-of-the-art sensor suite with increased endurance, they said.
These platforms will be used for multitude of operational roles which include protection of offshore assets, maritime interdiction operations and search and seizure operations, surveillance missions, mine warfare and counter infiltration operations, the defence ministry said.
The go ahead for the project was given by the Defence Acquisition Council (DAC), the ministry's highest decision making body on procurement.
The meeting of the DAC was chaired by Defence Minister Nirmala Sitharaman.
The DAC accorded approval for the procurement of six indigenously designed and manufactured offshore patrol vessels at an approximate cost of Rs. 4,941 crore, the officials said.
The NGOPVs will be built in Indian shipyards and will be fitted with state-of-the-art sensor suite with increased endurance, they said.
These platforms will be used for multitude of operational roles which include protection of offshore assets, maritime interdiction operations and search and seizure operations, surveillance missions, mine warfare and counter infiltration operations, the defence ministry said.
This City Tops India's Most Liveable Places In First Government Ranking
-
Pune, Navi Mumbai and Greater Mumbai from Maharashtra were ranked today India's three most livable places on the government's inaugural 'Ease of Living Index', where the national capital came at 65th place out of total 111 cities.
Rampur in Uttar Pradesh figured at the bottom of the livability index released by the Housing and Urban Affairs Ministry. Chennai has been ranked 14th, while Kolkata did not participate in the survey. Kohima (Nagaland) and Patna (Bihar) were also placed in the bottom-three.
In the top-ten, the three cities from Maharashtra were followed by Tirupati, Chandigarh, Thane, Raipur, Indore, Vijayawada and Bhopal.
Varanasi is at 33rd place, Ahmedabad at 23rd and Hyderabad at 27th.
This is the first-ever exercise undertaken by the ministry to rank the country's major cities on the basis of four parameters of ease of living - governance, social, economic and physical infrastructure.
The ministry said evaluation of cities has been done on a 100-point scale across 78 indicators - institutional and social pillars carried 25 points each, 5 points were given for economic pillar and 45 points for the physical pillar.
Releasing the index, Housing and Urban Affairs Minister Hardeep Singh Puri said this assessment is first of its kind globally in terms of scale and coverage and the ranking marks a shift to a data-driven approach to urban planning and management and promotes healthy competition among cities.
No city from Uttar Pradesh or Tamil Nadu figured in the top-ten.
While Rampur is ranked the lowest, those in the bottom-ten also include Kohima, Patna, Bihar Sharif, Bhagalpur, Itanagar, Pasighat, Kavaratti, Saharanpur and Silvassa.
Srinagar is ranked 100th, Jammu at 95th, Panaji 90th, Aligarh 86th, Gurugram at 88th and Meerut is 101st. Ghaziabad is ranked 46th and Rai Bareli is at 49th.
After the ten most livable cities, Karim Nagar (Telangana) has been ranked 11th, followed by Tiruchirappalli, Bilaspur, Channai, Jabalpur, Amravati, Visakhapatnam, Bhubaneswar, Surat, Vasai-Virar city, Nashik, Solarpur, Ahmedabad, Ujjain, Coimbatore, Erode, Hyderabad, Madurai, Tiruppur, Jainpur, Nagpur and Gwalior among others.
Pune, Navi Mumbai and Greater Mumbai from Maharashtra were ranked today India's three most livable places on the government's inaugural 'Ease of Living Index', where the national capital came at 65th place out of total 111 cities.Rampur in Uttar Pradesh figured at the bottom of the livability index released by the Housing and Urban Affairs Ministry. Chennai has been ranked 14th, while Kolkata did not participate in the survey. Kohima (Nagaland) and Patna (Bihar) were also placed in the bottom-three.
In the top-ten, the three cities from Maharashtra were followed by Tirupati, Chandigarh, Thane, Raipur, Indore, Vijayawada and Bhopal.
Varanasi is at 33rd place, Ahmedabad at 23rd and Hyderabad at 27th.
This is the first-ever exercise undertaken by the ministry to rank the country's major cities on the basis of four parameters of ease of living - governance, social, economic and physical infrastructure.
The ministry said evaluation of cities has been done on a 100-point scale across 78 indicators - institutional and social pillars carried 25 points each, 5 points were given for economic pillar and 45 points for the physical pillar.
Releasing the index, Housing and Urban Affairs Minister Hardeep Singh Puri said this assessment is first of its kind globally in terms of scale and coverage and the ranking marks a shift to a data-driven approach to urban planning and management and promotes healthy competition among cities.
No city from Uttar Pradesh or Tamil Nadu figured in the top-ten.
While Rampur is ranked the lowest, those in the bottom-ten also include Kohima, Patna, Bihar Sharif, Bhagalpur, Itanagar, Pasighat, Kavaratti, Saharanpur and Silvassa.
Srinagar is ranked 100th, Jammu at 95th, Panaji 90th, Aligarh 86th, Gurugram at 88th and Meerut is 101st. Ghaziabad is ranked 46th and Rai Bareli is at 49th.
After the ten most livable cities, Karim Nagar (Telangana) has been ranked 11th, followed by Tiruchirappalli, Bilaspur, Channai, Jabalpur, Amravati, Visakhapatnam, Bhubaneswar, Surat, Vasai-Virar city, Nashik, Solarpur, Ahmedabad, Ujjain, Coimbatore, Erode, Hyderabad, Madurai, Tiruppur, Jainpur, Nagpur and Gwalior among others.
Business Affairs
Jet Airways may offload JetPrivilege stake to weather financial headwinds
-
The troubles of turbulence-hit Jet Airways are showing no signs of abatement. Days after Naresh Goyal-owned airline deferred the quarterly financial results, audit firm BSR & Co, an affiliate of KPMG India, has reportedly refused to sign the first quarter results of Jet Airways due to differing views over interpretations of some accounting rules, The Economic Times reported. It added that BSR might even consider resigning from the account if the issue is not resolved.
In another report, the daily said that the debt-laden airline has initiated a formal stake-sale process to raise $350-400 million from global private equity firms. The full-service carrier is going through rough weather owing to rise in fuel costs and pile up of interests due to huge debt on its books. It added that Jet Airways has put out feelers to PE funds including Blackstone, TPG and Indigo Capital Partners.
The troubled airline is planning to monetise its JPMiles programme. Jet Airways had sold the majority stake of its frequent flyer loyalty programme to Etihad Airways in 2014. The Gulf-based carrier had picked up 50.1 per cent stake in JetPrivilege for $150 million. Goyal, who raised Jet Airways from the scratch after India opened its skies for private carriers in 1991, has roped in an investment bank to offload some of the stake, the report said.
In 2013, Jet Airways had sold 24 per cent equity to Etihad Airways for $379 million after the government allowed foreign airlines to take up to 49 per cent stake in Indian carriers.
Jet Airways' negative net worth is well over Rs 7,000 crore with total liabilities of Rs 19,743 crore against total assets of Rs 12,501 crore. In May 2018, ratings agency ICRA lowered credit ratings on its short-term and long-term loans due to weakening finances. The airline's cost of fuel as a percentage of operations shot up from nearly 40 per cent 2 years ago to nearly 65 per cent today.
In another report, the daily said that the debt-laden airline has initiated a formal stake-sale process to raise $350-400 million from global private equity firms. The full-service carrier is going through rough weather owing to rise in fuel costs and pile up of interests due to huge debt on its books. It added that Jet Airways has put out feelers to PE funds including Blackstone, TPG and Indigo Capital Partners.
The troubled airline is planning to monetise its JPMiles programme. Jet Airways had sold the majority stake of its frequent flyer loyalty programme to Etihad Airways in 2014. The Gulf-based carrier had picked up 50.1 per cent stake in JetPrivilege for $150 million. Goyal, who raised Jet Airways from the scratch after India opened its skies for private carriers in 1991, has roped in an investment bank to offload some of the stake, the report said.
In 2013, Jet Airways had sold 24 per cent equity to Etihad Airways for $379 million after the government allowed foreign airlines to take up to 49 per cent stake in Indian carriers.
Jet Airways' negative net worth is well over Rs 7,000 crore with total liabilities of Rs 19,743 crore against total assets of Rs 12,501 crore. In May 2018, ratings agency ICRA lowered credit ratings on its short-term and long-term loans due to weakening finances. The airline's cost of fuel as a percentage of operations shot up from nearly 40 per cent 2 years ago to nearly 65 per cent today.
Sensex, Nifty close lower on negative global cues, rupee falls to all-time low
-
The Sensex and Nifty closed lower for the second straight session in trade today on negative global cues and weak rupee. While the Sensex fell 224 points or 0.59% to 37,644 level, Nifty closed 0.65% or 73 points lower at 11,355 level as global markets crashed amid fears that financial crisis in Turkey could spread to other economies.
Meanwhile, the rupee hit an all-time low of 69.91 intra day tracking weakness in global currencies.
Infosys (1.75%), Sun Pharma (1.65%) and Wipro (1.31%) were the top Sensex gainers.
IT sector stocks were the top gainers today due to a fall in rupee.
The BSE IT index rose the most among the 19 sectoral indices to close 1.24% or 182 points higher at 14,865 level.
A fall in rupee translates to higher income for IT firms. IT companies earn most of their revenues in dollars. So, each dollar earned abroad will now get them more rupees.
Banking and oil and gas indices on the BSE were the worst losers with BSE bankex falling 1.20% or 380 points to 31,368 level.
The BSE oil and gas index too fell 1.93% or 290 points to close at 14,804.
Vedanta (3.40%), SBI (3.17%) and YES Bank (3.11%) were the top Sensex losers.
HDFC Bank slipped 1.15 percent after its deputy managing director put in his papers on Friday, while State Bank of India shares shed 3.17 percent after the lender reported a wider-than-expected loss in the quarter ended June.
Cadila Healthcare slipped more than 6 percent on lower-than-expected US sales, a Mumbai-based analyst said. The company beat analysts' estimates for first-quarter profit on Monday.
Market breadth was negative with 956 stocks closing higher compared to 1724 falling on the BSE.
"Emerging market currencies have declined sharply as Turkish lira has fallen to all time low level after US president Donald Trump imposed sanctions and tariffs on Turkey. The crisis is unlikely to resolve anytime soon. An absence of aggressive intervention by the RBI has also hurt the rupee. Market is nervous ahead of India's CPI data due later today. The dollar has strengthened to multi-month high on expectations of aggressive interest rate hikes by the Federal Reserve in coming months as the US economy is experiencing strong growth momentum. Hence, due to all these factors, the rupee has declined to all-time low level today," Rushabh Maru, Research Analyst at Anand Rathi said.
Investors are uneasy over whether Turkey's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. President Recep Tayyip Erdogan has accumulated more and more control over Turkey's financial system and central bank.
Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.
The lira has fallen about 45 percent against the greenback this year on worries over Turkish President Tayyip Erdogan's increasing control of the economy and a deepening diplomatic rift with the US.
Global markets
The Shanghai Composite Index lost 1.7 percent to 2,746.90 and Tokyo's Nikkei 225 retreated 1.9 percent to 21,885.45. Hong Kong's Hang Seng shed 1.8 percent to 27,850.55 and Seoul's Kospi retreated 1.6 percent to 2,249.65. Sydney's S&P-ASX 200 declined 0.5 percent to 6,246.80. Benchmarks in New Zealand, Singapore, Bangkok and Kuala Lumpur also fell.
Stock prices slid as investors responded to Turkey jitters by settling equities and buying government bonds.
The dollar strengthened while major exporters including technology, basic materials and industrial companies sank. The Standard & Poor's 500 index slide 0.7 percent to 2,833.28, ending a five-week winning streak.
The Nasdaq composite broke an eight-day rising trend and sank 0.7 percent to 7,839.11.
Meanwhile, the rupee hit an all-time low of 69.91 intra day tracking weakness in global currencies.
Infosys (1.75%), Sun Pharma (1.65%) and Wipro (1.31%) were the top Sensex gainers.
IT sector stocks were the top gainers today due to a fall in rupee.
The BSE IT index rose the most among the 19 sectoral indices to close 1.24% or 182 points higher at 14,865 level.
A fall in rupee translates to higher income for IT firms. IT companies earn most of their revenues in dollars. So, each dollar earned abroad will now get them more rupees.
Banking and oil and gas indices on the BSE were the worst losers with BSE bankex falling 1.20% or 380 points to 31,368 level.
The BSE oil and gas index too fell 1.93% or 290 points to close at 14,804.
Vedanta (3.40%), SBI (3.17%) and YES Bank (3.11%) were the top Sensex losers.
HDFC Bank slipped 1.15 percent after its deputy managing director put in his papers on Friday, while State Bank of India shares shed 3.17 percent after the lender reported a wider-than-expected loss in the quarter ended June.
Cadila Healthcare slipped more than 6 percent on lower-than-expected US sales, a Mumbai-based analyst said. The company beat analysts' estimates for first-quarter profit on Monday.
Market breadth was negative with 956 stocks closing higher compared to 1724 falling on the BSE.
"Emerging market currencies have declined sharply as Turkish lira has fallen to all time low level after US president Donald Trump imposed sanctions and tariffs on Turkey. The crisis is unlikely to resolve anytime soon. An absence of aggressive intervention by the RBI has also hurt the rupee. Market is nervous ahead of India's CPI data due later today. The dollar has strengthened to multi-month high on expectations of aggressive interest rate hikes by the Federal Reserve in coming months as the US economy is experiencing strong growth momentum. Hence, due to all these factors, the rupee has declined to all-time low level today," Rushabh Maru, Research Analyst at Anand Rathi said.
Investors are uneasy over whether Turkey's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. President Recep Tayyip Erdogan has accumulated more and more control over Turkey's financial system and central bank.
Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.
The lira has fallen about 45 percent against the greenback this year on worries over Turkish President Tayyip Erdogan's increasing control of the economy and a deepening diplomatic rift with the US.
Global markets
The Shanghai Composite Index lost 1.7 percent to 2,746.90 and Tokyo's Nikkei 225 retreated 1.9 percent to 21,885.45. Hong Kong's Hang Seng shed 1.8 percent to 27,850.55 and Seoul's Kospi retreated 1.6 percent to 2,249.65. Sydney's S&P-ASX 200 declined 0.5 percent to 6,246.80. Benchmarks in New Zealand, Singapore, Bangkok and Kuala Lumpur also fell.
Stock prices slid as investors responded to Turkey jitters by settling equities and buying government bonds.
The dollar strengthened while major exporters including technology, basic materials and industrial companies sank. The Standard & Poor's 500 index slide 0.7 percent to 2,833.28, ending a five-week winning streak.
The Nasdaq composite broke an eight-day rising trend and sank 0.7 percent to 7,839.11.
Rupee hits lifetime low of 69.62 amid financial crisis in Turkey
-
The rupee tumbled 79 paise against the US dollar to its lifetime low of 69.62 in early trade as Turkey's financial turmoil fuelled fears contagion might spread to other emerging markets. The currency's previous record low stood at 69.13 on July 20, 2018.
Increased demand for the US currency from importers and banks amid fresh foreign fund outflows mainly hit the rupee sentiment, forex traders said.
On Friday too, the rupee had lost 15 paise to end at 68.83 against the resurgent dollar.
"Emerging market currencies have declined sharply as Turkish lira has fallen to all time low level after US president Donald Trump imposed sanctions and tariffs on Turkey. The crisis is unlikely to resolve anytime soon. An absence of aggressive intervention by the RBI has also hurt the rupee. Market is nervous ahead of India's CPI data due later today. The dollar has strengthened to multi-month high on expectations of aggressive interest rate hikes by the Federal Reserve in coming months as the US economy is experiencing strong growth momentum. Hence, due to all these factors, the rupee has declined to all-time low level today," Rushabh Maru, Research Analyst at Anand Rathi said.
Investors are uneasy over whether Turkey's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. President Recep Tayyip Erdogan has accumulated more and more control over Turkey's financial system and central bank.
US President Donald Trump said Friday he will authorise higher tariffs on Turkish steel and aluminium. That came after Turkey put an American pastor on trial on spying charges. Erdogan promised Sunday his government will take unspecified "necessary actions" to calm markets.
Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.
The lira has fallen about 45 percent against the greenback this year on worries over Turkish President Tayyip Erdogan's increasing control of the economy and a deepening diplomatic rift with the United States.
A weak trend in Asia coupled with sell-offs on Wall Street last week and a slump in the Turkish lira dampened the sentiment globally, brokers said.
Meanwhile, the Sensex fell over 288 points and the Nifty dipped below the 11,400-level in opening trade today on heavy losses in PSUs, auto, metal and banking counters amid a global rout in equity markets.
Asian stock prices were trading lower on fears that financial crisis in Turkey could spread to other economies.
The Shanghai Composite Index lost 1.7 percent to 2,746.90 and Tokyo's Nikkei 225 retreated 1.9 percent to 21,885.45. Hong Kong's Hang Seng shed 1.8 percent to 27,850.55 and Seoul's Kospi retreated 1.6 percent to 2,249.65. Sydney's S&P-ASX 200 declined 0.5 percent to 6,246.80. Benchmarks in New Zealand, Singapore, Bangkok and Kuala Lumpur also fell.
Increased demand for the US currency from importers and banks amid fresh foreign fund outflows mainly hit the rupee sentiment, forex traders said.
On Friday too, the rupee had lost 15 paise to end at 68.83 against the resurgent dollar.
"Emerging market currencies have declined sharply as Turkish lira has fallen to all time low level after US president Donald Trump imposed sanctions and tariffs on Turkey. The crisis is unlikely to resolve anytime soon. An absence of aggressive intervention by the RBI has also hurt the rupee. Market is nervous ahead of India's CPI data due later today. The dollar has strengthened to multi-month high on expectations of aggressive interest rate hikes by the Federal Reserve in coming months as the US economy is experiencing strong growth momentum. Hence, due to all these factors, the rupee has declined to all-time low level today," Rushabh Maru, Research Analyst at Anand Rathi said.
Investors are uneasy over whether Turkey's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. President Recep Tayyip Erdogan has accumulated more and more control over Turkey's financial system and central bank.
US President Donald Trump said Friday he will authorise higher tariffs on Turkish steel and aluminium. That came after Turkey put an American pastor on trial on spying charges. Erdogan promised Sunday his government will take unspecified "necessary actions" to calm markets.
Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.
The lira has fallen about 45 percent against the greenback this year on worries over Turkish President Tayyip Erdogan's increasing control of the economy and a deepening diplomatic rift with the United States.
A weak trend in Asia coupled with sell-offs on Wall Street last week and a slump in the Turkish lira dampened the sentiment globally, brokers said.
Meanwhile, the Sensex fell over 288 points and the Nifty dipped below the 11,400-level in opening trade today on heavy losses in PSUs, auto, metal and banking counters amid a global rout in equity markets.
Asian stock prices were trading lower on fears that financial crisis in Turkey could spread to other economies.
The Shanghai Composite Index lost 1.7 percent to 2,746.90 and Tokyo's Nikkei 225 retreated 1.9 percent to 21,885.45. Hong Kong's Hang Seng shed 1.8 percent to 27,850.55 and Seoul's Kospi retreated 1.6 percent to 2,249.65. Sydney's S&P-ASX 200 declined 0.5 percent to 6,246.80. Benchmarks in New Zealand, Singapore, Bangkok and Kuala Lumpur also fell.
Jio Gigafiber plans will be 50% cheaper than existing broadband rates: Report
-
In 2016, India's richest man Mukesh Ambani had made a dramatic entry into the telecom sector with Reliance Jio Infocomm and shook up the industry with his disruptive pricing. Now he is reportedly readying for an encore, in the broadband market as well as the cable TV and direct-to-home market this time round.
According to The Economic Times, JioGigaFiber will launch with plans priced as low as around Rs 500 a month. That's 50 per cent lower than the current rates charged by cable operators for similar services. To remind you, the high-speed fibre-to-the-home (FTTH) broadband service announced by Reliance earlier this year includes a JioGigaTV set top box for 4K enabled media connectivity and streaming services on the idiot box.
The report added that home broadband packs promising around 100GB of data per month at 100 Mbps speed are currently offered by cable operators at Rs 700-1,000 a month per household, plus an additional Rs 250-300 per home for TV services. Jio has effectively halved the pricing for a similar bundled offer as it focuses on volumes to drive demand.
Better still, Jio Gigafiber's pricing is reportedly expected to be 25-30 per cent cheaper than current 4G mobile data rates, which are in the Rs 2.7-5 per GB range. But this is unlikely to hurt Jio's 4G mobile data business. "There can be very limited cannibalisation even if Jio prices fixed broadband (with bundled internet TV services) at 30 per cent below 4G mobile broadband rates as the two data products are very different - one meant for the home user and the other for the person on-the move," Naveen Kulkarni, telecom analyst at PhillipCapital, told the daily. He also pointed out that the quality of video streaming in a fibre-based home broadband scenario would be far more reliable and consistent than 4G mobile broadband.
"Starting this Independence Day, August 15, you can start registering your interest for JioGigaFiber through both MyJio and Jio.com," Ambani had announced at Reliance Industries' 41st AGM meeting last month, adding, "We will prioritize our JioGigaFiber rollout to those localities from where we receive the highest number of registrations".
A source in the know told the daily that the company is sticking to this plan and is looking at a commercial rollout of Jio GigaFiber before Diwali (November 7), initially in the metros and about 80 top tier 1 and 2 markets. The report added that Jio may rely on IP multicast - a bandwidth-conserving technology that reduces traffic by delivering a single stream of information simultaneously to a large group of recipients - to offer internet-based TV services so that home broadband customers don't use up their data for TV.
According to Rajiv Sharma, HSBC director and telecom analyst, IP multicasting makes sense because "without such a technology, Jio would have had to provide each home a data allowance of over 500-600 GB per month for delivering TV services alone, which would limit the company's ability to price home broadband with bundled TV services at an attractive Rs 500 per month".
In many Western countries, consumers are increasingly opting for multiple telecom products in a single "bundled" package from a single company in order to save money. For instance, telecoms giants like Verizon in the US and Vodafone Plc in the UK have already moved towards quad-play packages that bundle up fixed line, broadband, mobile and TV, since they not only increase sales - and market share - but also help with customer retention. Jio clearly has similar plans.
According to The Economic Times, JioGigaFiber will launch with plans priced as low as around Rs 500 a month. That's 50 per cent lower than the current rates charged by cable operators for similar services. To remind you, the high-speed fibre-to-the-home (FTTH) broadband service announced by Reliance earlier this year includes a JioGigaTV set top box for 4K enabled media connectivity and streaming services on the idiot box.
The report added that home broadband packs promising around 100GB of data per month at 100 Mbps speed are currently offered by cable operators at Rs 700-1,000 a month per household, plus an additional Rs 250-300 per home for TV services. Jio has effectively halved the pricing for a similar bundled offer as it focuses on volumes to drive demand.
Better still, Jio Gigafiber's pricing is reportedly expected to be 25-30 per cent cheaper than current 4G mobile data rates, which are in the Rs 2.7-5 per GB range. But this is unlikely to hurt Jio's 4G mobile data business. "There can be very limited cannibalisation even if Jio prices fixed broadband (with bundled internet TV services) at 30 per cent below 4G mobile broadband rates as the two data products are very different - one meant for the home user and the other for the person on-the move," Naveen Kulkarni, telecom analyst at PhillipCapital, told the daily. He also pointed out that the quality of video streaming in a fibre-based home broadband scenario would be far more reliable and consistent than 4G mobile broadband.
"Starting this Independence Day, August 15, you can start registering your interest for JioGigaFiber through both MyJio and Jio.com," Ambani had announced at Reliance Industries' 41st AGM meeting last month, adding, "We will prioritize our JioGigaFiber rollout to those localities from where we receive the highest number of registrations".
A source in the know told the daily that the company is sticking to this plan and is looking at a commercial rollout of Jio GigaFiber before Diwali (November 7), initially in the metros and about 80 top tier 1 and 2 markets. The report added that Jio may rely on IP multicast - a bandwidth-conserving technology that reduces traffic by delivering a single stream of information simultaneously to a large group of recipients - to offer internet-based TV services so that home broadband customers don't use up their data for TV.
According to Rajiv Sharma, HSBC director and telecom analyst, IP multicasting makes sense because "without such a technology, Jio would have had to provide each home a data allowance of over 500-600 GB per month for delivering TV services alone, which would limit the company's ability to price home broadband with bundled TV services at an attractive Rs 500 per month".
In many Western countries, consumers are increasingly opting for multiple telecom products in a single "bundled" package from a single company in order to save money. For instance, telecoms giants like Verizon in the US and Vodafone Plc in the UK have already moved towards quad-play packages that bundle up fixed line, broadband, mobile and TV, since they not only increase sales - and market share - but also help with customer retention. Jio clearly has similar plans.
Retail inflation slows to 4.17% as fruits, vegetables prices decline
-
Retail inflation fell to nine-month low of 4.17 per cent in July on account of slowdown in prices of vegetables and fruits, said government data released on Monday. Based on Consumer Price Index (CPI), inflation for June has also been revised downwards to 4.92 per cent from the earlier estimate of 5 per cent, as per the Central Statistics Office (CSO) data released on Monday.
Its previous low was in October 2017 at 3.58 per cent. As for year-on-year comparison, retail inflation had increased by 2.36 per cent in July last year. The CSO data revealed that inflation in vegetables declined by (-) 2.19 per cent last month, compared to 7.8 per cent in June.
The rate of price rise in fruits slowed down 6.98 per cent, as against over 10 per cent in the previous month. As per the data, the inflation in protein rich items like meat and fish, and also milk was also slower in July compared to the previous month.
However, inflation in the 'fuel and light' segment based on the changes in the CPI increased to 7.96 per cent from 7.14 in the previous month. The prices for the data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals, maintained by the National Informatics Centre.
Its previous low was in October 2017 at 3.58 per cent. As for year-on-year comparison, retail inflation had increased by 2.36 per cent in July last year. The CSO data revealed that inflation in vegetables declined by (-) 2.19 per cent last month, compared to 7.8 per cent in June.
The rate of price rise in fruits slowed down 6.98 per cent, as against over 10 per cent in the previous month. As per the data, the inflation in protein rich items like meat and fish, and also milk was also slower in July compared to the previous month.
However, inflation in the 'fuel and light' segment based on the changes in the CPI increased to 7.96 per cent from 7.14 in the previous month. The prices for the data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals, maintained by the National Informatics Centre.
General Awareness
Arbitration & Conciliation (Amendment) Bill, 2018
-
What to study?
For Prelims: Highlights of the Bill, meaning of arbitration.
For Mains: Significance and the need for alternative dispute resolution system.
Context: The Lok Sabha has passed the Arbitration and Conciliation (Amendment) Bill, 2018. It will amend the Arbitration and Conciliation Act, 1996. The Act contains provisions to deal with domestic and international arbitration, and defines the law for conducting conciliation proceedings.
Key features of the Bill are:
Arbitration Council of India: The Bill seeks to establish an independent body called the Arbitration Council of India (ACI) for the promotion of arbitration, mediation, conciliation and other alternative dispute redressal mechanisms.
Its functions include: (i) framing policies for grading arbitral institutions and accrediting arbitrators, (ii) making policies for the establishment, operation and maintenance of uniform professional standards for all alternate dispute redressal matters, and (iii) maintaining a depository of arbitral awards (judgments) made in India and abroad.
Composition of the ACI: The ACI will consist of a Chairperson who is either: (i) a Judge of the Supreme Court; or (ii) a Judge of a High Court; or (iii) Chief Justice of a High Court; or (iv) an eminent person with expert knowledge in conduct of arbitration. Other members will include an eminent arbitration practitioner, an academician with experience in arbitration, and government appointees.
Appointment of arbitrators: Under the 1996 Act, parties were free to appoint arbitrators. In case of disagreement on an appointment, the parties could request the Supreme Court, or the concerned High Court, or any person or institution designated by such Court, to appoint an arbitrator.
Role of courts: Under the Bill, the Supreme Court and High Courts may now designate arbitral institutions, which parties can approach for the appointment of arbitrators. For international commercial arbitration, appointments will be made by the institution designated by the Supreme Court. For domestic arbitration, appointments will be made by the institution designated by the concerned High Court. In case there are no arbitral institutions available, the Chief Justice of the concerned High Court may maintain a panel of arbitrators to perform the functions of the arbitral institutions. An application for appointment of an arbitrator is required to be disposed of within 30 days.
Relaxation of time limits: Under the 1996 Act, arbitral tribunals are required to make their award within a period of 12 months for all arbitration proceedings. The Bill proposed to remove this time restriction for international commercial arbitrations.
Completion of written submissions: Currently, there is no time limit to file written submissions before an arbitral tribunal. The Bill requires that the written claim and the defence to the claim in an arbitration proceeding, should be completed within six months of the appointment of the arbitrators.
Confidentiality of proceedings: The Bill provides that all details of arbitration proceedings will be kept confidential except for the details of the arbitral award in certain circumstances. Disclosure of the arbitral award will only be made where it is necessary for implementing or enforcing the award.
What is Arbitration?
Arbitration is a settlement of dispute between two parties to a contract by a neutral third party i.e. the arbitrator without resorting to court action. The process can be tailored to suit parties’ particular needs.
Arbitrators can be chosen for their expertise. It is confidential and can be speedier and cheaper than court. There are limited grounds of appeal. Arbitral awards are binding and enforceable through courts.
Significance of ADR:
It is felt that a reliable and responsive alternative dispute resolution system is essential for rapidly developing countries like India. While business disputes need speedy resolution, litigation is the least favoured method for that. The Indian judicial system is marred by delays because of which businesses suffer as disputes are not resolved in a reasonable time period. Therefore, need for alternative dispute resolution processes like negotiation, mediation conciliation and arbitration is felt from time to time.
What to study?
For Prelims: Highlights of the Bill, meaning of arbitration.
For Mains: Significance and the need for alternative dispute resolution system.
Context: The Lok Sabha has passed the Arbitration and Conciliation (Amendment) Bill, 2018. It will amend the Arbitration and Conciliation Act, 1996. The Act contains provisions to deal with domestic and international arbitration, and defines the law for conducting conciliation proceedings.
Key features of the Bill are:
Arbitration Council of India: The Bill seeks to establish an independent body called the Arbitration Council of India (ACI) for the promotion of arbitration, mediation, conciliation and other alternative dispute redressal mechanisms.
Its functions include: (i) framing policies for grading arbitral institutions and accrediting arbitrators, (ii) making policies for the establishment, operation and maintenance of uniform professional standards for all alternate dispute redressal matters, and (iii) maintaining a depository of arbitral awards (judgments) made in India and abroad.
Composition of the ACI: The ACI will consist of a Chairperson who is either: (i) a Judge of the Supreme Court; or (ii) a Judge of a High Court; or (iii) Chief Justice of a High Court; or (iv) an eminent person with expert knowledge in conduct of arbitration. Other members will include an eminent arbitration practitioner, an academician with experience in arbitration, and government appointees.
Appointment of arbitrators: Under the 1996 Act, parties were free to appoint arbitrators. In case of disagreement on an appointment, the parties could request the Supreme Court, or the concerned High Court, or any person or institution designated by such Court, to appoint an arbitrator.
Role of courts: Under the Bill, the Supreme Court and High Courts may now designate arbitral institutions, which parties can approach for the appointment of arbitrators. For international commercial arbitration, appointments will be made by the institution designated by the Supreme Court. For domestic arbitration, appointments will be made by the institution designated by the concerned High Court. In case there are no arbitral institutions available, the Chief Justice of the concerned High Court may maintain a panel of arbitrators to perform the functions of the arbitral institutions. An application for appointment of an arbitrator is required to be disposed of within 30 days.
Relaxation of time limits: Under the 1996 Act, arbitral tribunals are required to make their award within a period of 12 months for all arbitration proceedings. The Bill proposed to remove this time restriction for international commercial arbitrations.
Completion of written submissions: Currently, there is no time limit to file written submissions before an arbitral tribunal. The Bill requires that the written claim and the defence to the claim in an arbitration proceeding, should be completed within six months of the appointment of the arbitrators.
Confidentiality of proceedings: The Bill provides that all details of arbitration proceedings will be kept confidential except for the details of the arbitral award in certain circumstances. Disclosure of the arbitral award will only be made where it is necessary for implementing or enforcing the award.
What is Arbitration?
Arbitration is a settlement of dispute between two parties to a contract by a neutral third party i.e. the arbitrator without resorting to court action. The process can be tailored to suit parties’ particular needs.
Arbitrators can be chosen for their expertise. It is confidential and can be speedier and cheaper than court. There are limited grounds of appeal. Arbitral awards are binding and enforceable through courts.
Significance of ADR:
It is felt that a reliable and responsive alternative dispute resolution system is essential for rapidly developing countries like India. While business disputes need speedy resolution, litigation is the least favoured method for that. The Indian judicial system is marred by delays because of which businesses suffer as disputes are not resolved in a reasonable time period. Therefore, need for alternative dispute resolution processes like negotiation, mediation conciliation and arbitration is felt from time to time.
For Prelims: Highlights of the Bill, meaning of arbitration.
For Mains: Significance and the need for alternative dispute resolution system.
Context: The Lok Sabha has passed the Arbitration and Conciliation (Amendment) Bill, 2018. It will amend the Arbitration and Conciliation Act, 1996. The Act contains provisions to deal with domestic and international arbitration, and defines the law for conducting conciliation proceedings.
Key features of the Bill are:
Arbitration Council of India: The Bill seeks to establish an independent body called the Arbitration Council of India (ACI) for the promotion of arbitration, mediation, conciliation and other alternative dispute redressal mechanisms.
Its functions include: (i) framing policies for grading arbitral institutions and accrediting arbitrators, (ii) making policies for the establishment, operation and maintenance of uniform professional standards for all alternate dispute redressal matters, and (iii) maintaining a depository of arbitral awards (judgments) made in India and abroad.
Composition of the ACI: The ACI will consist of a Chairperson who is either: (i) a Judge of the Supreme Court; or (ii) a Judge of a High Court; or (iii) Chief Justice of a High Court; or (iv) an eminent person with expert knowledge in conduct of arbitration. Other members will include an eminent arbitration practitioner, an academician with experience in arbitration, and government appointees.
Appointment of arbitrators: Under the 1996 Act, parties were free to appoint arbitrators. In case of disagreement on an appointment, the parties could request the Supreme Court, or the concerned High Court, or any person or institution designated by such Court, to appoint an arbitrator.
Role of courts: Under the Bill, the Supreme Court and High Courts may now designate arbitral institutions, which parties can approach for the appointment of arbitrators. For international commercial arbitration, appointments will be made by the institution designated by the Supreme Court. For domestic arbitration, appointments will be made by the institution designated by the concerned High Court. In case there are no arbitral institutions available, the Chief Justice of the concerned High Court may maintain a panel of arbitrators to perform the functions of the arbitral institutions. An application for appointment of an arbitrator is required to be disposed of within 30 days.
Relaxation of time limits: Under the 1996 Act, arbitral tribunals are required to make their award within a period of 12 months for all arbitration proceedings. The Bill proposed to remove this time restriction for international commercial arbitrations.
Completion of written submissions: Currently, there is no time limit to file written submissions before an arbitral tribunal. The Bill requires that the written claim and the defence to the claim in an arbitration proceeding, should be completed within six months of the appointment of the arbitrators.
Confidentiality of proceedings: The Bill provides that all details of arbitration proceedings will be kept confidential except for the details of the arbitral award in certain circumstances. Disclosure of the arbitral award will only be made where it is necessary for implementing or enforcing the award.
What is Arbitration?
Arbitration is a settlement of dispute between two parties to a contract by a neutral third party i.e. the arbitrator without resorting to court action. The process can be tailored to suit parties’ particular needs.
Arbitrators can be chosen for their expertise. It is confidential and can be speedier and cheaper than court. There are limited grounds of appeal. Arbitral awards are binding and enforceable through courts.
Significance of ADR:
It is felt that a reliable and responsive alternative dispute resolution system is essential for rapidly developing countries like India. While business disputes need speedy resolution, litigation is the least favoured method for that. The Indian judicial system is marred by delays because of which businesses suffer as disputes are not resolved in a reasonable time period. Therefore, need for alternative dispute resolution processes like negotiation, mediation conciliation and arbitration is felt from time to time.
No comments:
Post a Comment