CBI court remands 9 accused to judicial custody in Kingfisher Airlines loan default case
A CBI court here on Tuesday remanded all nine accused in the IDBI Bank-Kingfisher Airlines loan default case to judicial custody until February 7. The court, which will hear bail applications on January 30, has sought a detailed reply from the Central Bureau of Investigation (CBI) as to why these should not be granted. The agency submitted a 2,000-page charge sheet in which it alleged that around Rs 263 crore was siphoned off by former airline officials to pay salaries and extinguish tax deducted at source (TDS) obligations. CBI has also alleged that a significant portion of the loan was apparently diverted by KFA for servicing existing debt. It named founder Vijay Mallya as one of the absconding accused and alleged that a part of the loan was diverted overseas to purchase aircraft.
Muthoot Microfin to raise Rs130 crore from Creation Investments
Muthoot Microfin Ltd, part of Muthoot Pappachan Group, on Tuesday said it has got commitment of Rs130 crore from Chicago-based private equity fund Creation Investments Llc (Creation). Out of Rs130 crore, Muthoot Microfin has already received Rs50 crore and another Rs50 crore will come by March 2018. The balance Rs30 crore from Creation will come post March 2018 based on the company’s performance. Creation has agreed to invest Rs130 crore by 2018. Of which Rs50 crore has come in now and another Rs50 crore will come by March 2018. They (Creation) have an option to invest additional Rs30 crore thereafter,” Muthoot Microfin’s chief executive officer Sadaf Sayeed told reporters in Mumbai today.
Tata Sons’ Director Amit Chandra denies Cyrus Mistry allegations
Amit Chandra, a Tata Trustee and one of the Trusts’ nominee directors on the Tata Sons board, has denied allegations by Cyrus Mistry’s investment companies that he unfairly voted against Mistry last October during the board meeting that led to the latter’s removal as chairman. He also said his board commissions and sitting fees from Tata Sons are pledged to charity. Chandra is also the India head of Bain Capital, a leading private equity fund. In an affidavit filed with the National Company Law Tribunal (NCLT) last week and reviewed by ET, Chandra said Mistry had commended him for his inputs during his first Tata Sons board meeting, at which the five-year plan of the group was presented. In a September 20, 2016, letter, Mistry had expressed the desire that Chandra should get exposed to other parts of the group as they could gain from his experience and understanding.
Mistry seeks waiver from NCLT
Ousted chairman Cyrus Mistry has sought a waiver of a condition that requires his family firms to have at least 10 per cent stake in Tata Sons to be eligible to apply to the National Company Law Tribunal (NCLT). The waiver has been sought after Tata Sons alleged that Mistry camp had no locus standi to move NCLT, as Shapoorji Pallonji group owns only 2.17 per cent of the total issued share capital of Tata Sons. Under the Companies Act, a firm or person should hold a minimum 10 per cent share to file such a petition. While Mistry dismissed the stand taken by Tata Sons , he sought a waiver fearing that NCLT may dismiss his earlier appeal on technicalities. The Mistry camp has sought waiver of section 244 of the Companies Act in a petition filed before the National Company Law Tribunal (NCLT) asking it to use its discretion.
Source: The Hindu Business Line
Ankur Khanna quits as CFO of AirAsia India
AirAsia India’s Chief Financial Officer Ankur Khanna, who was summoned by the Enforcement Directorate (ED) in connection to alleged financial wrongdoing at the airline under its earlier head, has resigned barely 10 months after joining the airline, said a person close to the development. “He is serving a threemonth notice period currently,” said the person, refusing to be identified. An email sent to AirAsia India and AirAsia Berhad didn’t yield any response.
Sanjiv Puri to be named ITC CEO, chairman’s post may be split
The board of India’s biggest cigarette maker ITC Ltd will on Friday consider a proposal to split the post of chairman between non-executive chairman and chief executive officer (CEO) in a move that could hand the company’s reins to chief operating officer Sanjiv Puri effective 5 February. In June last year, ITC said its chairman Y.C. Deveshwar would step down as executive chairman at the end of his term in February, but he would continue as non-executive chairman for at least three more years.
Nabard allowed to raise Rs. 20,000 cr for crop loans
Hoping to give a boost to the agriculture sector after its decision to demonetise high-value currency, the government on Tuesday allowed the National Bank for Agriculture and Rural Development to raise Rs. 20,000 crore for short-term crop loans to farmers at lower rates. The funds will be raised by Nabard at the prevailing market rate and will be used for on-lending to cooperative banks at an interest of 4.5 per cent. “In light of the good monsoon and expectation of increased credit demand and to boost agricultural production, farmers need to be supported through cooperative banks, which purvey credit at their doorstep,” said an official statement.
Source: The Hindu Business Line
CBDT tightens screws on shell companies
The Central Board of Direct Taxes (CBDT) on Tuesday issued the much-awaited “guiding principles” for determination of a Place of Effective Management (PoEM) of a company, scotching speculation that the Budget may see its removal from the statute book. Put simply, PoEM means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance, made. The CBDT guidelines come barely two months before the end of fiscal year 2016-17, in which PoEM had become legislatively effective, giving little time for Indian multinationals to prepare for the new regime.
Source: The Hindu Business Line
‘Unknown sources’ make up 69% of parties’ income
Income from ‘unknown sources’ accounted for 69 per cent of the total for national and regional political parties between 2004-05 and 2014-15, an analysis by Association of Democratic Reforms (ADR), a non-profit election watchdog, showed. The total income of the political parties stood at Rs. 11,367.34 crore during the period, of which Rs. 7,832.98 crore came from ‘unknown sources’. The income of national parties from ‘unknown sources’ rose 313 per cent from Rs. 274.13 crore in 2004 to Rs. 1,130.92 crore in 2014-15.
Source: The Hindu Business Line
Ashok Leyland finance arm raises Rs250 crore through rights issue
Hinduja Leyland Finance Ltd (HLF), the commercial vehicle financing unit of Ashok Leyland Ltd, has raised Rs250 crore (about $37 million) from existing investors—Hinduja group entities and private equity investor Everstone Capital—through a rights issue, two people aware of the development said. HLF is owned by Ashok Leyland and other entities of the Hinduja Group.
Flipkart’s new CEO has his work cut out in the wake of top-level exits
Flipkart new CEO Kalyan Krishnamurthy is left with just three senior leaders to steer the day-to-day operations at the company after an exodus of top executives at India’s most valuable Internet start-up. Two more senior executives, engineering heads Hari Vasudev and Ashish Agrawal, have resigned from Flipkart this week, joining three others who left earlier this month, in the fastest clear-out of senior leaders the company has seen, two people familiar with the matter said, on condition of anonymity. In all, as many as 12 Flipkart leaders at the level of senior vice-president, the second-highest executive rank, have now left the company over the past year.
Snapdeal looks to raise funds at lower valuation with SoftBank
Snapdeal has begun fresh round of discussions for additional funds, largely with its existing investor SoftBank Group Corp. However, this time, the company — which had reached a peak valuation of USD 6.5 billion during a previous round of funding — is looking to raise funds at a significantly lower valuation this time, Mint reported quoting sources. SoftBank has offered to fund the e-tailer at a valuation of close to USD 3-4 billion even as the latter is on the lookout for new investors willing to buy stake at a better price.
Note ban squeezed gold demand to 650-750 tonnes, smuggling declined: WGC
Despite demonetisation-led India’s demand for gold would decline to 650-750 tonnes in 2016 because of measures adopted by the government to discourage sales of the metal, the World Gold Council (WGC) said in its latest report released on Tuesday. The country’s gold demand would average 850-950 tonnes every year till 2020 on transformational changes in the system to curb black money and increasing focus on transparency, the report said. A fifth of India’s demand in 2016 was met by smuggled gold, which has become prominent since 2013, when the government started raising the import duty on the metal. The report estimates gold smuggling at 120-135 tonnes in 2016, almost similar to 2015.
About the Author
