QBiz: Mallya’s Diageo Payment on Hold, FM Keeps Suspense on Rajan
Top business stories.
1. JPMorgan Bank Directed Not to Disburse $40 Million to Mallya
The Debt Recovery Tribunal (DRT) on Tuesday directed the JPMorgan Bank not to
disburse the $40 million (Rs 266 crore) deposited by British liquor giant
Diageo in favour of liquor baron Vijay Mallya.
The DRT also directed the bank to provide statement of transaction since 25 February 2016, till date. It also directed the bank to attach the shares held by Mallya in the companies.
The court passed an ex-party order while hearing the petition that was filed by consortium of banks led by the State Bank of India seeking the same.
Read The Quint’s report here.
2. FM Says Decision on Rajan Extention Without Influence of Any Factor
Finance Minister Arun Jaitley parried a question on BJP MP Subramanian Swamy’s demand for immediate sacking of RBI Governor Raghuram Rajan saying the government and RBI are responsible institutions and decisions will be taken without being influenced by “any other factor.”
I think what is important are issues not personalities. Secondly whether what happens to the RBI Governor, second term or no second term, what his own views on the issue are, are these matters to be discussed in public?Arun Jaitley, Finance Minister
The government, he said, is a very responsible institution and so is RBI. “We will take our decisions without being influenced by any other factor,” he told ET Now.
He was asked about Swamy writing to Prime Minister Narendra Modi seeking immediate sacking of the former IMF Chief Economist alleging that Rajan he was “mentally not fully Indian” and has “wilfully” wrecked the economy.
Read more here.
3. Private Equity Investments Hit All-Time High in 2015: Livemint
Private equity investors made the highest number of exits in five years in 2015
and fresh investments into India hit an all-time high during the year, according
to Bain and Co’s India Private Equity Report 2016 quoted by the Livemint.
This year, too, exits could remain strong but the pace of investments is likely to reduce as transactions, particularly in the consumer technology segment, have slowed down significantly, the report suggests.
In 2015, general partners (GPs) returned $9.4 billion to their investors as compared with $6 billion during the previous year. Deal volumes rose 10 percent with 213 exits reported— the best in five years.
4. Vodafone India Exits FY16 with 5 Percent Revenue Growth: BS
Vodafone India has exited, what at best can be called an eventful year (FY16) with a single-digit revenue growth, reports Business Standard.
The Indian arm of the British telecom major saw its service revenue grow five
percent year-on-year to Rs 44,303 crore, thanks to the regulatory impact of lower
interconnect and roaming charges.
Adjusting for this, Vodafone’s service revenues grew 10 percent during the fiscal. Data revenues have grown at 45 percent year-on-year (y-o-y) to Rs 8,263 crore.
Vodafone’s revenue growth was also driven by healthy subscriber additions, which grew 7.7 percent y-o-y to 198 million during the financial year.
5. Confident of SEBI Approval, RBL Bank Targets July IPO: Livemint
RBL Bank (formerly Ratnakar Bank), which received a conditional approval
from the capital markets regulator for its initial public offer (IPO) last month,
intends to launch its offer in July, reports Livemint.
Currently, the bank and the merchant bankers are working on parallel processes of resolving the issue under SEBI’s process and also working with the registrar of companies on the same as the violations deal with the Companies Act.
RBL, which had filed its draft prospectus with SEBI on 23 June 2015, has been waiting for its approval for almost 11 months now.
6. Government Rethinks Aggressive Labour Reforms Push: ET
An interministerial group on labour headed by finance minister Arun Jaitley
is expected to meet soon to take a call on how aggressively the government
should pursue its agenda of reforms, according to The Economic Times.
This comes after attempts to build consensus on big-ticket legislative changes in labour laws failed because of stiff opposition from the trade unions and the government not enjoying sufficient strength in the Rajya Sabha.
“The government will soon hold discussions at very senior level in which a decision is likely to be taken as to what extent it should push labour reforms,” a senior official was quoted in the report.
7. India to Not Press for Confidentiality Clause over Black Money: ET
In order to speed up the process of obtaining overseas information against
Indians holding black money abroad, the CBDT has asked the taxman to refrain from
invoking a specific clause of not informing an individual against whom the information
is being sought from the counterpart country, reports The Economic Times.
The clause called “refrainment from prior notification” entails Indian agencies to notify in their request that the individual against whom they are seeking information from their foreign counterpart should not be told about it.
Whenever a request for refrainment from notification is made, it automatically implies that information which is in possession of the taxpayer cannot be obtained and provided by the foreign tax authorities.CBDT Order
8. Syndicate Bank Writes off Rs 883 Crore Against Fraud: Livemint
Syndicate Bank has said that it wrote off Rs 882.64 crore in the fourth
quarter (the three months ended 31 March) because of fraud at its branches in
Jaipur over the last four years, reports Livemint.
The bank is said to have done this after it found out that a few hundred accounts had been opened, and loans of a few crore rupees given to each on the basis of fraudulent documents, such as fake or non-existent cheques, letters of credit and insurance policies.
As per senior official at Syndicate Bank quoted in the report, the lender detected some signs of a fraud during the audit of its October-December quarter results that took place in January.
9. Proposed Levy on Online Advts Will Burn a Hole in the Pocket, Say Startups: ET
Fledgling startups say that the proposed 6 percent equalisation levy on
online advertisements will burn a hole in their small pockets if it goes through, according to The Economic Times.
The levy puts us in a precarious position because all these companies-Google and Facebook- which are the most popular advertising platforms for us, are going to make us pay more at the end of the day,” said Manik Mehta, cofounder Leaf Wearables was quoted in the report.
An eight-member committee on taxation of ecommerce had in March proposed that services ranging from online advertising and cloud computing to software downloads and web hosting be subject to an “equalisation levy” of 6-8 percent of gross payment if the provider of the service is a foreign entity without a “permanent establishment” in India.
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