QBiz: Surcharges On FPIs Dropped; ED Raids Naresh Goyal

Here are all the top business stories.

Updated
India
4 min read
Jet Airways founder Naresh Goyal
i

1. FM Axes Two Bad Taxes, Fires First Booster Shot

The government unveiled the much-anticipated stimulus measures to boost the economy and perk up markets, delivering a comprehensive package that sought to address tax issues, lift credit flow and improve interest rate transmission, besides seeking to aid the auto sector.

The recovery package sought to provide immediate succour to some of the worst pain points of the economy, in the hope of effecting a turnaround.

Finance Minister Nirmala Sitharaman announced as many as 32 measures in six “silos” that included dropping the contentious surcharge on foreign portfolio investors (FPIs), doing away with the angel tax on startups and an immediate ₹70,000 crore capital infusion into banks to kickstart credit flow.

(Source: Economic Times)

2. ‘Shell Co’ Paid Chidambaram’s Travel Bills, Karti CA Tells ED

Investigations into the alleged involvement of former FM P Chidambaram in the INX Media case are relying on a key claim by his son’s chartered accountant that a shell company, also controlled by Karti Chidambaram, allegedly paid for his “travel bills” and “certain expenses”.

ET has reliably gathered that Karti’s chartered accountant Bhaskar Raman, who is also an accused in the case, claimed this in his testimony before the Enforcement Directorate (ED) on May 22 last year. He alleged this when confronted by documents and hard disks seized from the Chennai premises of Karti-promoted Chess Global Advisory Services Pvt Ltd.

(Source: Economic Times)

3. Air India Owes Rs 5,000 Crore in Fuel Dues; Hasn’t Paid in 230 Days: Oil Companies

Air India owes three state-owned oil firms Rs 5,000 crore in unpaid fuel bills with payments being delayed by almost eight months, forcing retailers to snap supplies, Indian Oil Corp (IOC) said on Friday.

IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) on Thursday afternoon stopped jet fuel or ATF supplies to Air India at six airports – Kochi, Pune, Patna, Ranchi, Vizag and Mohali – over payment defaults.

(Source: Financial Express)

4. Indigo's Rakesh Gangwal Says He Will Support Resolution on Expanding Board

IndiGo co-founder Rakesh Gangwal has decided to vote for a resolution to amend the airline’s Articles of Association.

The resolutions will come up for approval at the company’s annual general meeting (AGM) on August 27. Among the major resolutions, there is one on expanding the size of the board to 10 members, including four independent directors.

Currently, the company’s board has six members with two independent directors.

(Source: Business Standard)

5. Moody's Cuts India's GDP Growth to 6.2% for 2019 Amid Economic Slowdown

Amid an economic slowdown, Moody’s Investors Service has cut India’s gross domestic product (GDP) growth rate to 6.2 per cent for calendar year 2019 against its earlier projection of 6.8 per cent.

The rating agency scaled down India’s economic growth to 6.7 per cent for 2020, a cut of another 0.6 percentage points.

If it happens, Chinese economic growth rate would equal India’s this calendar year. However, India would again become the fastest growing large economy, at least in Asia, next financial year as the Chinese GDP growth rate would come down to 5.8 per cent.

(Source: Business Standard)

6. ED Searches Jet Founder Naresh Goyal's Business, Residential Premises

The Enforcement Directorate (ED), which on Friday conducted extensive search operations at Naresh Goyal’s business and residential premises in 12 locations, has alleged that Tail Winds, incorporated by him in Isle of Man, was controlling the financial activities of Jet Airways.

Goyal will be called for questioning next week, an ED official said. According to the probe findings, Hasmukh Deepchand Gardi, who was named in the Panama Paper global leaks for allegedly holding fraudulent companies and was also Goyal’s partner, made investments in Tail Winds. Gardi’s premises were also searched on Friday. His investments in Goyal’s firm have come from illegal activities, according to the official.

(Source: Business Standard)

7. After More and Future Retail Deals, Amazon Smoothens Road for Offline Play

With access to more than 2,100 offline retail stores spread across the country, global tech and e-commerce giant Amazon has become one of the largest retailers in the country. Late on Thursday evening, Kishore Biyani-led Future Retail, in a filing to BSE, said that Amazon.com was acquiring 49 per cent stake in a group entity — Future Coupons.

Future Coupons, which is into digital payments, has an economic interest of 7.3 per cent in Future Retail by way of convertible warrants. Through this deal, Amazon would have an effective stake of 3.6 per cent in Future Retail.

(Source: Business Standard)

8. Donald Trump Orders Firms Out of China as Beijing Sets New Duties

US President Donald Trump on Friday, 23 August said he had ordered American companies to exit China after Beijing unveiled retaliatory tariffs on $75 billion worth of US goods, throwing a new twist into the bitter trade war between the world's two largest economies.

Trump said on Twitter he would issue a response to China's latest tariff plan on Friday afternoon. The president was meeting with his trade team at midday, a senior White House official told Reuters.

“We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP,” Trump tweeted.

(Source: Business Standard)

9. Ashok Leyland Goes for More Output Cuts at Ennore Plant

Hinduja group flagship Ashok Leyland has announced more production holidays at its Ennore plant (the mother plant) in Chennai.

In its notice to employees, the company said that due to continuing sluggishness and contraction in the commercial vehicle market and the need to continue the corrective actions to safeguard the interest of the company, it has been decided to declare August 24, 27, 30 as non-working days and August 26 as the 6th day non-working day.

The notice further said that wages payable for the above non-working days will be decided after consulting with the Ashok Leyland Employees Union (ALEU).

(Source: Financial Express)

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