Pin code 700001 hosts 37 shell companies
Last week, Securities and Exchange Board of India (Sebi) named 331 listed companies as suspected “shell companies”—companies that exist for the purpose of financial manoeuvring—and asked stock exchanges to initiate action against them. As many as 141 of these were registered in West Bengal, followed by 53 in Maharashtra and 35 in Delhi. A more granular look into their registered addresses shows that of the 284 companies for which pin codes could be ascertained, 37 were formed in just one of the over-19,000 pin codes in India: 700001, in Central Kolkata. This area has long been known to be a thriving hub of lawyers and chartered accountants who specialize in creating so-called “shell companies”. And while Kolkata has ceased to be the epicentre of such a business, which has spread to other cities such as Mumbai or Delhi, several thousand shell companies continue to be registered in the city.
Govt extends deadline for filing GST returns for some businesses
The government on Thursday extended the deadline for businesses to file their goods and services tax (GST) returns for July, the first month since implementation of the indirect tax, in cases where credit for taxes paid under the previous indirect tax system is being claimed. A statement issued by the Central Board of Excise and Customs (CBEC) said that the extension till 28 August applies only to filing of returns where credit is being claimed, and not for remitting the applicable tax amount for July, the deadline for which remains 20 August.
Volkswagen to recall 323,700 cars with cheat device, submits roadmap to NGT
German auto major Volkswagen, which is embroiled in a global emissions scandal, on Thursday submitted a road map before the National Green Tribunal (NGT) to recall 323,700 vehicles fitted with a ‘defeat device’ meant to fudge emission tests in India. The road map was submitted in pursuance to the NGT’s direction passed on Wednesday. The automobile giant is in the process of recalling several million cars across the globe.
Insolvency regulator empowers homebuyers, puts them on a par with creditors
The insolvency regulator has brought in a special provision to protect the homebuyers of beleaguered real estate companies such as Jaypee Infratech and Amrapali. The Insolvency and Bankruptcy Board of India (IBBI), which is implementing the Insolvency and Bankruptcy Code, has said owner of undelivered properties can become part of the committee of creditors and stake a claim equivalent to the amount they have paid to realtors. Their claims, according to the regulator, would be treated on a par with claims of other financial and operational creditors and would not be pushed to the bottom of the list.
FDI reforms: Narendra Modi government mulls relaxing food retail norms, may allow retailers to sell non-food items
The government is weighing a proposal to relax foreign direct investment (FDI) guidelines in food retail to allow a certain percentage of locally-produced non-food items along with the edible products. Although a final decision is yet to be taken by the government, it could allow a FDI-backed retailer to sell locally-produced non-food items worth around 20-25% of its investments at the farm-gate level, said a source. However, some feel the government should keep the rule simple and allow the sale of non-food items at a fixed percentage of overall FDI, instead of the investments at the farm-gate level. Monitoring compliance with the rule would be easy in this case, they argue. It’s not clear what the government would finally decide, as consultations are still on.
Affordable home loan from Axis Bank announced; 12 EMIs to be waived
Axis Bank on Thursday announced the launch of an affordable home loan product which will allow borrowers applying for loans of up to Rs 30 lakh the benefit of 12 equated monthly installments (EMIs) being waived. Waivers will apply only to those borrowers who have been regular with repayments. They will come into effect in a staggered manner, with four EMIs each being waived off at the end of the fourth, eighth and 12th year from the date of the first disbursement. The waiver will take the form of a reduction in the tenure of the loan. To be eligible for the waivers under the product, called Shubh Aarambh home loans, a loan must have a tenure of between 20 years and 30 years.
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