1. GST Rate Cut Relief Likely for Compact Cars, Parts Makers
The clamour for lowering the goods and services tax rate for the auto industry, following the massive slowdown in the sector, may prompt the GST Council to announce a rate cut for automobile components and sub-four metre cars when it meets on 20 September.
However, the tax break will be a short-term stimulus to boost demand, and the GST rate cut may be announced only for a limited period. The current rates may be restored after about six months, two officials familiar with the discussions between the central and state governments said, requesting anonymity. This is because raising tax rates once it is reduced is a politically difficult call, the officials added.
(Source: Livemint)
2. Adani Takes Bidvest to HC Over Mumbai International Airport Stake Sale
The takeover battle for Mumbai airport has now landed in the Bombay High Court (HC), with the Adani group moving it against Bidvest, part owner of the airport, and other shareholders to take over its stake. The South African company has a 13.5 percent stake in Mumbai International Airport (MIAL).
The petition, filed on Wednesday, also names GVK, the Airports Authority of India (AAI), MIAL, and the civil aviation ministry as respondents. In March this year, Bidvest had signed an agreement to sell its stake to the Adani group at the same consideration offered to other shareholders.
(Source: Business Standard)
3. FEMA Violations: Jet Airways Founder Naresh Goyal Questioned by Enforcement Directorate
Jet Airways founder Naresh Goyal was questioned by the Enforcement Directorate on Friday for alleged violations under the Foreign Exchange and Management Act (FEMA). Goyal was questioned at length at the Mumbai office of the ED regarding a slew of dubious transactions.
Last month, the ED raided offices of Jet Airways, Goyal and his associate Hasmukh Gardi. Raids were also conducted in Goyal’s residence.
(Source: Financial Express)
4. Retailers Pin Hopes on Festive Demand to Revive Flagging Sales
Amid the ongoing slowdown in consumer demand, retailers and brands across categories are pinning hopes on the festive season, which typically accounts for 20-30 percent of annual sales.
Retailers selling consumer durables, apparel and jewellery said they expect sales to be in line with the 2018 numbers. The festivities started on 1 September with Onam and will continue till Diwali in late October.
(Source: Livemint)
5. Indiabulls Housing Stock Slides 5 Percent on Allegations of Fund Diversion
Shares of Indiabulls Housing Finance closed 5 percent lower on Friday following reports that a fresh public interest litigation (PIL) had been filed against the company in the Delhi High Court, seeking an investigation into its affairs.
Since January this year, Indiabulls Housing Finance has lost almost half of its market value, which stood at Rs 18,202 crore as of Friday. The loss in market valuation of all Indiabulls group listed companies was Rs 36,956 crore since 1 January.
(Source: Business Standard)
6. RBI Order: Private Banks Not Keen on Linking Retail Loans to Repo Rate
Private banks are unhappy with the Reserve Bank of India’s diktat to link floating rate loans given to individuals and small enterprises to an external benchmark. Currently, only two private banks have on offer repo-rate linked retail loans, but after this week’s notification all other private lenders will also have to fall in line.
The one-size-fits-all approach does not account for the varying liability profiles of different players, some bankers told FE.
(Source: Financial Express)
7. Coffee Day sells Global Village Tech Park for Rs 2,800 cr to Blackstone
Coffee Day Enterprises Ltd (CDEL), the holding company of Coffee Day Group founded by the late V.G. Siddhartha, on Friday closed the deal to sell the Global Village Technology Park in Bengaluru to New York-based private equity giant Blackstone Group Llp.
Two people familiar with the transaction confirmed the development. The sale of the 90-acre tech park was finalized at ₹2,800 crore, according to the first person.
(Source: Livemint)
8. Used Car Market on Growth Track, but Auto Crisis Casts a Shadow
Even as auto manufacturers sweat their pain out in the most prolonged slowdown in decades, players in the organised market for pre-owned cars have not taken hankies out of their pockets yet. But they might have to, latest data and their own projections suggest.
Both physical stores for pre-owned cars run by manufacturers as well as online players facilitating sales of used cars are seeing growth in demand, in contrast to contraction in sales and registrations of new cars. The pre-owned car market is 20 percent bigger than the new car market.
(Source: Business Standard)
9. Madras High Court Offers Cognizant Partial Relief in Buyback Case
Partially allowing IT major Cognizant’s appeal against a single judge’s order in an income tax matter related to a share buyback scheme, a division bench of the Madras High Court on Friday upheld its direction to the company to approach the tax appellate authority for a remedy. The court offered relief to the company by setting aside some observations of the single judge on transactions linked to the 2016 share buyback arrangement.
The division bench’s order came on an appeal filed by the company against the single judge order that dismissed its petition against the Income Tax Department’s demand of `2,806 crore in connection with a scheme the company had made to buy back shares from shareholders in 2016.
(Source: Financial Express)
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