Tata-Mistry war: We might have to write…on how a judgment should be written, says NCLAT
The National Company Law Appellate Tribunal (NCLAT) on Wednesday made some sharp observations on the quality of language used by the Mumbai bench of the National Company Law Tribunal (NCLT) in its over 368-page order. Such was the anguish of the bench that it observed, “We may have to write a judgment as to how a judge should write a judgment.” It went on to add, “We are not angry, rather worried.” The appellate tribunal made the observations while hearing the appeal by Shapoorji Pallonji investment firms with a stake in Tata Sons, the holding company for the Tata Group. The companies have alleged mismanagement and oppression of minority shareholders.
Investor relations: US investor sues government over UTI
After unsuccessfully petitioning the finance ministry and the Securities and Exchange Board of India (Sebi), US investor T Rowe Price (TRP) on Wednesday filed a case in the Bombay High Court against the Indian government asking it to prevent PSU financial investors — State Bank of India, Life Insurance Corporation (LIC), Punjab National Bank (PNB) and Bank of Baroda — from scuttling Unit Trust of India’s (UTI) attempts at an initial public offering (IPO) and trying to take over the country’s fourth largest mutual fund through the back door. TRP owns 26% of UTI and was sold these shares in 2009-10 by the government as part of a process to make UTI a board-managed professional company.
Firms submitting cost audit reports to govt to provide GST details
Companies that are required to submit cost audit reports to the government will now have to provide details related to the goods and services tax (GST) after the Ministry of Corporate Affairs released a draft of amendment to the relevant rules. This will provide the government with a tool to cross-check GST-related information of a company. The draft cost audit form would also ask for GST reconciliation data, which is essentially a report on the data inserted at the taxpayer’s end and the matching data entered by vendors. Earlier, the income-tax department released new return forms for businesses that have opted for presumptive taxation scheme.
Government to wheel in a new industrial policy soon
The government will shortly unveil a new industrial policy that aims to speed up regulatory reforms and lower power tariffs to make businesses more competitive and create more jobs, senior officials said. The policy, being given final touches by the Department of Industrial Policy and Promotion (DIPP), will be presented to Cabinet for approval in the next two weeks, they said. The proposals include establishing an overarching body with representation by the Centre and the states similar to the Goods and Services Tax (GST) Council to enable swift decisions on key changes such as the revamp of labour laws, taxation provisions and land leasing. Crucially, India’s industrial sector has a 29% share in GDP at current prices, well below 44% for China.
Banks have first right over pledged assets, rules tribunal
In a landmark ruling, the appellate tribunal on matters related to the Prevention of Money Laundering Act has ruled that Enforcement Directorate cannot claim rights over assets of people suspected of criminal activity if banks have created prior rights over them through lending. The tribunal has ruled in favour of Standard Chartered Bank in a dispute involving the ED on the Winsome Diamonds & Jewellery case saying that it would be against the spirit of the Money Laundering Act if assets pledged are not available for banks to recover their dues. “The mortgaged properties of the appellant bank cannot be attached or confiscated unless link and nexus directly or indirectly established,” Justice Manmohan Singh, chairman of the tribunal wrote in his order passed on August 2, a copy of which is in possession of ET.
CCI clears Walmart-Flipkart deal
The Competition Commission of India has given its approval for US retail giant Walmart’s acquisition of e-commerce company Flipkart. In its order on Wednesday, the Commission said, “Considering the facts on record… the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India.” “The parties are neither close competitors in the B2B (Business to Business) sales nor have a combined market share that raises competition concern,” CCI said. The market share of Wal-Mart in B2B sales in India is less than half a percent and the incremental changes on account of the proposed combination is insignificant, the order stated.
NZ dairy firm Fonterra ties up with Future Group to enter India
Global dairy exports firm Fonterra has entered the Indian market through an equal joint venture with the Kishore Biyani-led Future Group. The New Zealand-based dairy major had earlier tied up with Britannia, but parted ways in 2009. The new partnership, under the name Fonterra Future Dairy Partners, is expected to help the company strengthen its position in the Indian market that is dominated by a few national players such as Amul and Mother Dairy along with regional and local dairy businesses.
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