I-T Dept probes Rs 10-bn tax refund fraud by govt and PSU employees
With less than a month left for revising income-tax (I-T) returns for 2016-17, the I-T department has unearthed a giant fraud in multiple cities, where government employees allegedly claimed huge tax refunds forging documents, inflating expenses and not revealing complete information. In Mumbai alone, around 17,000 revised returns have been filed claiming refunds. Similarly, in Bangalore, the I-T department has found over 1,000 returns filed with inflated claims on account of payments towards home loans. Since the I-T department is still investigating the matter, the loss to the department could not be ascertained, but it could go up to over Rs 10 billion, sources said.
Rs 127-billion fraud fallout: Foreign banks stop selling gold to PNB
Punjab National Bank’s (PNB’s) gold import business has taken a hit after the Nirav Modi swindle. Foreign banks are not willing to sell gold to the scam-tainted public sector bank, said sources. Foreign banks selling gold to PNB are not willing to take risks. Concerns about weak compliance after it was struck by fraudulent letters of undertaking (LoUs) linger, said people in the know. Several banks, including PNB, are nominated agencies for gold imports on behalf of traders and bullion refiners. In recent months, PNB has emerged as one of the largest gold importing banks, where it earned a margin of 1-2 per cent.
RBI to infuse Rs 1 trillion into banking system via special auctions in March
he Reserve Bank of India (RBI) will infuse up to Rs 1 trillion into the banking system through special auctions this month to manage additional demand for liquidity as activities of banks and corporate entities pick pace before the close of the financial year. The current financial year (2017-18) ends on March 31. Treasury executives said liquidity in the system has been under pressure, with supply falling short of demand on some days. The RBI has maintained its stance to keep liquidity close to neutral.
RBI imposes penalty of Rs 30 mn on Axis Bank and Rs 20 mn on IOB
RBI slapped Rs 30-million fine on Axis Bank for flouting NPA norms and Indian Overseas Bank was fined Rs 20 million for KYC breach The Reserve Bank of India (RBI) has fined private lender Axis Bank for violating RBI’s regulations for assessment of Non-Performing Assets (NPAs).The monetary penalty is for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) in reference to Axis Bank’s financial position as on March 31, 2016. The RBI also imposed a monetary penalty of Rs 20 million on Indian Overseas Bank for a fraud detected in one of its branches due to failure to comply with Know Your Customer (KYC) norms.
Will CCI crackdown against GDA, DDA hit real estate companies?
Despite the lunatic traffic on Vikas Path, the building of the Ghaziabad Development Authority (GDA) is easy to locate. It towers over the street as the most impressive piece of architecture in a town that gets all its ideas from Delhi, next door. The Authority, too, borrows its mandate from Delhi Development Authority (DDA). Both are under the scanner for anti-competitive conduct by India’s fair market regulator, the Competition Commission of India (CCI). Except at this time it is GDA that has scored a first of sorts as a government housing agency. On the last day of February, it was slapped with an over Rs10 million fine by the fair market regulator.
Aircel seeks appointment of interim resolution professional
Troubled telecom operator Aircel Ltd, which has filed for bankruptcy, approached the Mumbai bench of the National Company Law Tribunal (NCLT) for the appointment of an interim resolution professional (IRP) on Monday. “The company has filed for bankruptcy along with its two subsidiaries since the company has a debt of over Rs50, 000 crore,” said senior counsel Janak Dwarkadas, who is appearing for the company. “Out of that, Rs15, 000 crore is due to financial creditors, while Rs35,000 crore to operational creditors.”According to the counsel, there is serious urgency to hear the matter because the company wants to continue essential services.
Why India’s banking sector is among the most vulnerable in G-20 economies today
When the Indian economy and its banking sector emerged relatively unscathed after the global financial crash of 2008, India’s financial system became the envy of the world. That seems a distant memory today as the banking sector of the country reels under one of the worst crises it has faced in a long time. A mounting pile of bad loans, poor accounting standards and growing evidence of lax supervision and banking fraud—unearthed over the past few weeks by several government agencies—highlight the deep rot at the core of India’s financial system.The broad numbers also tell the same story.
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