Companies & Sectors
Aircel-Maxis deal violated forex rules, says CBI

Prima-facie information received from Malaysia indicates that Foreign Direct Investment norms were allegedly violated

Information received from Malaysia in connection with the Central Bureau of Investigation’s (CBI) probe in the Aircel-Maxis deal prima facie indicates that foreign exchange rules were allegedly violated.


The CBI has received response from Malaysia regarding its judicial requests in connection with its probe in the deal.


However, CBI sources said the agency needs clarity on some points which might be referred back to the Malaysian authorities for detailed responses after which it might finalise its charge sheet in the matter.


The sources said the prima-facie information received from Malaysia indicates that Foreign Direct Investment (FDI) norms were allegedly violated.


The agency is planning to file a charge-sheet in the case and the response from the Malaysia would help it in consolidating its probe so far.


CBI has registered the case in 2011 against Dayanidhi and Kalanidhi Maran, executives of Maxis Ralph Marshall and T Anandkrishnan besides three companies for alleged graft.


CBI claimed quid-pro-quo on part of the then telecom minister Dayanidhi Maran has been established during the probe. It has also been proved during the CBI probe that there is direct evidence that files of former Aircel chief Sivasankaran were deliberately delayed, sources said.


It was alleged by Sivasankaran that Maran as the then telecom minister favoured the Maxis group in the takeover of his company and in return investments were made by the company through Astro Network in Sun TV owned by the Maran family.


The allegations have been denied by Marans.


I-T dept issues Rs816 crore demand notice on Wipro

Wipro has been slapped with an over Rs816 crore claim by I-T department, becoming the latest IT company to have got such a notice after Infosys, WNS and iGate

Azim Premji-led Wipro became the latest information technology (IT) company in India to receive a notice from the Income Tax (I-T) department. Following similar tax demand notices to Infosys, WNS and iGate, the I-T department has slapped a notice for Rs816 crore on Wipro.


In a statement, Wipro, the third largest IT company in the country, said, the 'draft assessment order' from I-T authorities for FY2008-09 has arisen mainly due to denial of deduction under section 10A of the I-T Act, 1961, in respect of profit earned by its undertaking in the Software Technology Park (STP) at Bangalore.


In a regulatory filing on the US Securities and Exchange Commission (SEC), Wipro said, “The company will file its objections against the said demand before the Dispute Resolution Panel, within the time limit prescribed under the statute”.


Besides the fresh assessment order, Wipro said it is also facing tax demands of around Rs3,936 crore (including interest) for the period 31 March 2001 to 31 March 2008 due to denial of deduction under section 10A of the I-T Act, 1961, on profits it earned in STP in Bangalore.


“Considering the facts and nature of disallowance and the order of the appellate authority upholding the claims of the company for earlier years, the company believes that the final outcome of the above disputes should be in favour of the company and there should not be any material impact on the consolidated financial statements,” the Wipro filing added.


Is a small bounce in Sensex, Nifty likely?: Thursday closing report

The bounce, if any, will only be temporary

In line with all the Asian indices, the benchmarks back home too ended in the red. The Sensex, which opened 144 points lower at 18,897 ended in the negative for the third consecutive trading day while the Nifty, which opened 51 points lower at 5,709 ended in the negative for the sixth consecutive trading day. The NSE saw a volume of 56.64 crore shares.


In the morning session itself the indices hit their respective low, which was the lowest after 18 April 2013. Sensex hit a low of 18,766 while the Nifty hit a low of 5,683. From the lows, the benchmark tried recovering but ended in the negative. The Sensex closed 18,827 (down 214 points, 1.12%), while the Nifty closed at 5,699 (61 points down, 1.06%).


Among other news, the World Bank cut its global growth forecast. The world economy will expand 2.2%, less than a January forecast for 2.4% growth and slower than last year's 2.3%, the bank said in a report. It lowered its prediction for developing economies and sees the euro region's gross domestic product shrinking 0.6%. In contrast, forecasts were raised for the US and Japan, which were helped by fiscal and monetary stimulus.


Finance minister P Chidambaram speaking on the state of the economy today said he expects decisions to be announced in June that will accelerate economic reforms and spur investments in critical sectors and that steps government had taken in the last nine months have yielded results.


The government is also looking to pass a measure allowing cash-strapped power utilities to pass on the higher rising cost of imported coal to customers.


The Securities and Exchange Board of India (SEBI) raised the investment limits for foreign investors in government debt by $5 billion to $30 billion, but only long-term funds will be able to buy into that increased limit.


US stocks fell on Wednesday as traders extended a selloff driven by concern about central banks winding down their stimulus measures. The Federal Open Market Committee meets next week after the Bank of Japan this week left its debt-buying programme unchanged.


With the all the Asian indices ending in the red, Nikkei 225 fell by 6.35%. The European indices were trading in the red and so were the US Futures.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)