PNB fraud impact: PSBs told to keep foreign branches in check
The government has asked state-run lenders to ensure strict compliance with all regulatory norms and proper audit of their foreign branches. A finance ministry official said that a mechanism for coordination between foreign branches of all public sector banks (PSBs) is also being explored. “Any such initiative has to come from the banks. We will provide any support in this regard,” said a government official aware of the deliberations, adding that foreign branches of PSB should ensure proper compliance and audits as per regulatory requirements.
Daiichi-Ranbaxy row: HC orders attachment of Singh brothers’ assets
The Delhi High Court today ordered the attachment of all unencumbered assets of two holding companies of former promoters of India’s Ranbaxy Laboratories Ltd to execute the ₹3,500 crore arbitral award won by Japanese pharma major Daiichi Sankyo.Justice Jayant Nath issued the warrants for attaching the unencumbered assets of RHC Holdings Pvt Ltd and Oscar Investments Pvt Ltd and directed former Ranbaxy promoters and brothers, Malvinder Singh and Shivinder Singh, and 10 others to file within 10 days a list of their unencumbered assetsz“Let warrants of attachment of all unencumbered assets (of the two companies) be issued,” the judge said.
PNB scam: Govt fast-tracks bill to seize assets of defaulters fleeing India
Stung by the Rs 114 billion scam at Punjab National Bank, the government is considering fast-tracking the draft fugitive economic offenders Bill. The draft law might soon be placed before the Cabinet before being tabled in Parliament in the post-recess Budget session. Finance Minister Arun Jaitley had first spoken of such a Bill in the 2017-18 Budget. The draft Bill, which has the law ministry’s approval, allows the government to confiscate the properties of economic offenders and defaulters who flee India. Currently, confiscation can be done through multiple laws but it is a complicated process. Even existing cases could come under the proposed law, which means that cases relating to Vijay Mallya, Nirav Modi and Mehul Choski will also be covered.
Income Tax: Do not worry! No need for physical appearance for Sec 133 notices – Here is the reason
In a relief to taxpayers, the Central Board of Direct Taxes (CBDT) notified the Centralized Communication Scheme, 2018, under which an assessee will not be required to visit a tax office for resolution of notices issued under Section 133 C of the Income Tax Act. Though notices under Section 133 C only seek information and documentation for verification, the task of physical appearance at the tax office to comply with the notice causes considerable stress and anxiety to the recipient of such notices, tax experts said. Under the scheme, no personal appearance will be required before the designated authority at the centralized communication centre (CCC) in connection with any proceedings, the notification said
Excluding genetic disorders from insurance policies illegal: Delhi HC
The Delhi high court on Monday held that it was illegal for health insurance policies to exclude genetic disorders from their scope of coverage. Such exclusionary clauses were held to be in violation of Article 14 (Right to Equality) and Article 21 (Right to Life) of the Constitution for being “too broad, ambiguous and discriminatory”.“The fact (is) that there are different types of genetic disorders and even common diseases like diabetes and cardiac diseases could be included in the broad definition, and makes the exclusion vulnerable. In effect, it would mean that large swathes of population would be excluded from availing health insurance, which could have a negative impact on the health of a country…..The broad exclusion of genetic disorders from insurance contracts/claims is illegal and unconstitutional,” the court ruled.
PNB tightens staff transfer policy to ensure irregularities do not recur
Fraud-hit Punjab National Bank (PNB) on Monday held its board meeting for five hours and decided to replace the current tax transfer policy with strict as well as clear norms to ensure that such irregularities do not recur. The board also resolved that internal and external auditors must ensure that system procedures, particularly those involving SWIFT and forex transactions, are followed in all the branches. Though the meeting did not discuss plans to approach the government seeking more recapitalization funds, sources said the bank was assessing its liabilities after the fraud. The assessment will take a week, after which it might go to the government for additional funds, they said.
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