Economy
CAG to continue auditing PPPs having revenue sharing pact

According to the CAG, industries vulnerable to abuses of capitalism based on rent seeking, include banking, mines, telecom spectrum, utilities, oil and gas and public infrastructure

Regretting that economic progress has thrown up a class of 'rent seekers', Comptroller and Auditor General (CAG) Shashi Kant Sharma on Tuesday said the CAG will continue to audit private companies and private public partnership (PPP) projects in cases, where revenue sharing with the government is involved.

 

Speaking at a conference on corporate fraud, he said, "Work on telecom audit is already in progress and I am hopeful that our first report would be ready before the year end. A report on gas and oil exploration will be presented to Parliament soon. We will be taking up performance audit of some ongoing PPP projects shortly".

 

Noting that CAG audit will not cause any discouragement to investors, Sharma said, "in a mature market economy, where there is very little scope for manipulations and fudging, why should companies fear such audit if they have nothing to hide."

 

Capitalism based on rent seeking, he said "is not just unfair, but also bad for long term growth. In such an environment, resources are mis-allocated, competition is repressed and dynamic new firms are stifled by better connected players".

 

Rent seeking refers to instances when a company or individual uses public resources to obtain economic gain from others without reciprocating any benefits back to society.

 

"Many of the corporate tycoons, throughout the emerging economies, are today accused of making fortunes by 'rent seeking'. They want to grab a bigger slice of the pie rather than making the pie bigger," he said, adding the industries vulnerable to such abuses include banking, mines, telecom spectrum, utilities, oil and gas and public infrastructure.

 

Although several private companies, specially in telecom, oil and power have resisted audit by CAG, the Supreme Court in its latest judgement had ruled that any entity using public resources in its business and sharing revenue with the government can be audited by the CAG. "Our stand has been the same since long," Sharma said.

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COMMENTS

Nagesh Kini

3 years ago

All, repeat all, each and every, PPP has necessarily to be subjected to CAG audit as corporates are known to subject diverse numbers.

Nagesh Kini

3 years ago

All, repeat all, each and every, PPP has necessarily to be subjected to CAG audit as corporates are known to subject diverse numbers.

Castrol India Q1 net profit down 19% to Rs100 crore
For the March Quarter, Castrol India reported a lower net profit due to subdued demand and higher costs

Castrol India Ltd, (Castrol) the manufacturer of automotive and industrial lubricants, reported a lower first quarter net profit mainly on subdued demand and higher costs.
 
For the quarter to end-March, the engine oil maker said, its net profit fell 19% to Rs100.20 crore from Rs124.30 crore while its total revenues, including sales, grew marginally to Rs832.6 crore from Rs805.9 crore a year ago period.
 
Castrol said during the quarter, its expenses increased 9.43% to Rs670.80 crore from Rs613 crore, it paid 13.44% less taxes of Rs52.80 crore from Rs61 crore during March quarter.
 
Castrol India said it paid a final dividend of Rs3.20 on 6 May 2014.
 
Castrol India closed Tuesday marginally up at Rs293 on the BSE, while the S&P BSE Sensex ended the day 1.4% higher at 23,871.
 
For more stock results, check out this page

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Queries at MONEYLIFE FOUNDATION’S Legal Resource Centre

Housing Society Refusing Name Registration
 

My cooperative housing society (CHS) is refusing to give a ‘no objection certificate’ (NOC) for transferring the flat I purchased. No reason is given for refusal. It is nearly 10 years and I have written nearly 20 letters in the matter without getting a reply. I do get the tax invoice from the municipal corporation and the electricity bill in my name. What is the legal remedy? The purchase agreement is registered and stamp duty has also been paid by me.
 
LRC’s Reply: Under Section 22(2) of the Maharashtra State Co-operative Societies Act, 1960, if your CHS does not communicate to you, within 90 days of your application to the Society, you are considered as a deemed member of the Society.
 
 To get the deemed membership confirmed, you have to make an appeal to the deputy registrar of cooperative. housing societies, under the above-mentioned Section. In your appeal, you have to attach the set of photocopies of your all the papers that you have submitted to your CHS to become its member. You have to make your appeal with all the attachments, in duplicate. On the first copy of your appeal, you have to affix the required amount of court fee stamps (may be of Rs100) which the deputy registrar’s office will inform you.
 
 Once your case is admitted by the deputy registrar, he will call you and the secretary or chairman of your CHS for hearing. At the time of hearing, you will have to carry your all the original papers, whose photocopy you have attached to your appeal under Section 22(2) of MSCS Act, 1960. 
 
When the deputy registrar is satisfied that all the papers you have submitted are in order, he will pass a direction, under Section 22(2), to transfer the share certificate of the flat in your name and admit you as a member of the CHS. The secretary/ chairman of your CHS will do the necessary work of writing your name on the back of the share certificate, under signature and seal of the society's managing committee, and pass a resolution accepting your name at next general body meeting of your society. You have to submit this evidence to the deputy registrar, to close the file of your dispute under Section 22(2) of MSCS Act, 1960. 
 
I am a middle-ranked manager in a reputed company. On the plea of testing me on more challenging assignment before making me head of a unit, I was asked to move to a greenfield grinding unit of the company at another location. This is nothing but denial of due promotion to me; I think, one of the seniors does not like me. I want to know whether I have any legal recourse as, at the age of 50, this action of the management deprives me of my livelihood and financial security, besides social standing.
 
LRC’s Reply: As you said, you work with a reputed company and have a good job. Most people working in large companies figure out different ways to deal with a boss who may not like them. Some of us leave the job. 
 
We think, you need to meet your HR department and discuss your issues and aspirations with them. Legal options in India do not have the same speed, cost and timelines as they do in the US. We also think that if you proceed legally, there could be repercussions like the company choosing to sack you or harass you. That is the reality.
 
Our labour courts are also not too enthusiastic about taking up cases involving managers. This is only our guidance. However, you are welcome to seek proper legal advice, if you would like to pursue the matter. Please do consider the time and cost involved and precedents, if any. 

Have a legal question? Try our Moneylife Foundation’s Legal Resource Centre. Check out http://lrc.moneylife.in and register at http://moneylife.in/lrc.html

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