Aircel applies for protection under bankruptcy code
Beleaguered telecom service provider Aircel has filed for bankruptcy protection with the National Company Law Tribunal (NCLT) in Mumbai, after its Malaysian promoter Maxis Communications decided against pumping additional funds into the company. Aircel was weighing various options; including venturing into 4G services through partnerships, but this entailed fresh investments from promoters. However, Aircel said that in a statement that filing of CIRP is not a proceeding for liquidation rather is a process to find best possible resolution for the current situation. The move follows a Joint Lenders’ Forum meeting held in Mumbai today, wherein the lenders sought moving NCLT for bankruptcy protection. Earlier on Monday, Global Communication Services Holdings (GCSH), a Mauritius-based subsidiary of Maxis Communications, said in an email response to Business Line that it had decided not to infuse further funds in to company.
Karti Chidambaram to be quizzed for taking $1 mn bribe from INX Media: CBI to Court
Karti Chidambaram, arrested in connection with the INX Media case, was today sent to one-day CBI custody by a Delhi court after the agency claimed his custodial interrogation was needed to unearth the conspiracy over alleged payment of USD one million bribe to him by the media company through foreign entities. The fresh evidence in the case, which triggered the arrest of Karti, son of senior Congress leader P Chidambaram, was based on the statement of Indrani Mukerjee, former Director of INX Media (P) Ltd, who recorded it under section 164 of CrPC before a magistrate on February 17.
15th finance commission to review tax devolution formula
The 15th finance commission will be reviewing the enhanced tax devolution formula, which determines the share of states in national taxes.“The terms of reference or ToR (of the) would have to be addressed. Which implies that a review (of the devolution formula) will be undertaken,” N.K. Singh, chairman of the 15th finance commission said while responding to a question during a media briefing. The 14th finance commission had increased the share of states in net taxes to 42% from the previous level of 32%. The terms of reference of the 15th finance commission specifically require it to review this and ascertain its impact on the fiscal capability of the Union government.
SBI raises retail FD rates, first time in three years
In what could be a precursor to a system-wide rise in lending rates, State Bank of India (SBI) on Wednesday raised the interest rate on retail fixed deposits (FDs) by between 10-50 basis points (bps). This is the first hike in retail term deposit rates by the country’s largest lender in almost three-and-a-half years. FDs of under Rs 1 crore maturing in one year will now earn 6.4% per annum, up from 6.25% earlier. The corresponding rates at large private banks HDFC Bank and ICICI Bank stand at 6.75% and 6.6%, respectively. SBI also raised rates on bulk deposits by between 25-75 bps. One-year deposits of over Rs 1 crore will now yield 6.75%, up from 6.25% earlier.
India regains status of fastest-growing economy; GDP grows 7.2% in Oct-Dec
Economic growth recovered to a five-quarter high of 7.2 per cent during October-December, backed by strong manufacturing and investment activity as the disruption caused by the goods and services tax (GST) bottomed out. The robust third-quarter performance led to a marginal upward revision in the second advance estimate for 2017-18 to 6.6 per cent from 6.5 per cent in the first estimate, though it was still lower than the 6.75 per cent projected by the Economic Survey. Gross domestic product (GDP) growth has been revised up to 6.5 per cent for the second quarter against 6.3 per cent estimated earlier. Growth stood at 6.8 per cent for the third quarter of 2016-17, which was the period of demonetization. India overtook China’s 6.8 per cent growth in October-December after a three-quarter gap, regaining its status as the world’s fastest-growing major economy.
ICAI seeks govt help for access to PNB fraud data
The Institute of Chartered Accountants of India (ICAI) has approached the Ministry of Corporate Affairs (MCA) to extract information on the Punjab National Bank (PNB) fraud, after the bank allegedly refused to give the information sought. A senior MCA official said: “ICAI had informed us the bank would not share information, saying it was given to the Central Bureau of Investigation (CBI). We have asked the finance ministry to instruct the bank to share details with the regulator.” ICAI intends to investigate the chartered accountants of PNB. The department of financial services will soon hold a meeting with the information technology (IT) teams of all public sector banks (PSBs) to ensure such a scam does not recur.
Ordinance likely to fast-track Fugitive Economic Offenders Bill
The government plans to issue the Fugitive Economic Offenders Bill as an ordinance before the monsoon session of Parliament. If it is not passed in the Budget session, a senior government official told Business Standard, the ordinance will be then sought to be formalized as an Act in the monsoon session. The second half of the Budget session starts from Monday and is expected to go on till April 6. On the agenda are the Finance Bill, the triple talaq Bill, which is stuck in the Rajya Sabha, and the one to give constitutional status to the National Commission on Backward Classes.
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