Special Court sanctions distribution of money from liquidated assets of the scamster to the I-T department, SBI, SBI Caps and Standard Chartered
The Custodian has secured another order from the Special Court, Mumbai, allowing him to release a total amount of Rs650 crore against pending claims of the Income-Tax Department, banks and financial institutions from the liquidated assets of the Harshad Mehta group of entities.
Based on a distribution proposal submitted by the Custodian, Justice DK Deshmukh of the Special Court, Mumbai, has ordered the payment of Rs28.34 crore to the Income-Tax Department, Rs259.65 crore to the State Bank of India, Rs16.25 crore to SBI Caps and Rs345.76 crore to Standard Chartered Bank, aggregating to Rs650 crore from the attached accounts of the Harshad Mehta group.
The payments are to be released on an interim basis, on undertakings to be provided by the receiving entities that the amounts will be brought back to the Custodian if so ordered by the Special Court.
In the case of Standard Chartered Bank, the court has ordered the submission of a board resolution along with an undertaking from the Bank. The Custodian has been asked to release the amount to the Standard Chartered Bank only after the final court clearance.
This is the second time that the Custodian has released money from the late Harshad Mehta's assets this year. (Read, "Custodian releases Rs2,195 crore to I-T dept, SBI from Harshad Mehta's assets".)
In ordering these releases, the Special Court has strictly followed the priorities of claims laid down under Section 11 of the Act, placing primary income-tax liabilities above the claims of banks and financial institutions.
Nifty should close above 4,980 for the uptrend to resume
The market erased gains in morning trade to end flat with a negative bias, down for a third day in a row today. However, volumes on the National Stock Exchange (NSE) were at 62.72 crore shares which was higher than yesterday. In the closing report yesterday, we had mentioned that if the Nifty was able to stay above Monday's low, the current fall would be curtailed. Today, the Nifty again hit exactly yesterday's low at 4,911. The index will now have to close above 4,980 to resume its uptrend. On the other hand, if the index falls tomorrow and goes below 4,911, we may see it going down to the level of 4,890 and then to 4,785.
An uptick in the global markets supported the higher opening on the domestic market this morning. Overnight, the US market closed higher, recovering from early losses on reports that China is in talks to purchase Italian bonds. The developments also resulted in the Asian bourses opening up this morning.
At home, the Nifty opened at 4,978, up 31 points, and the Sensex rose 116 points at 16,618. Broad-based buying across all sectors took the indices to a higher trajectory in subsequent trade.
The market rose to its intra-day high around noon, with the Nifty touching 5,030 and the Sensex at 16,766. However, profit-booking at higher levels, a negative opening on key European bourses and the fall in US futures pushed the indices into negative terrain in post-noon trade.
Offloading by institutional investors pulled the indices to their intra-day lows shortly after 2pm, when the Nifty dropped to 4,911 and the Sensex slipped to 16,375. However, the market witnessed a minor recovery and closed off the lows of the day. At the end of the session, the Nifty had lost six points at 4,941 and the Sensex closed at 16,467, down 34 points from its previous close.
The advance-decline ratio on the NSE was 823:865.
The broader indices closed with a positive bias, with the BSE Mid-cap index and BSE Small-cap index adding 0.03% and 0.01%, respectively.
BSE IT (up 0.93%), BSE TECk (up 0.40%) and BSE Oil & Gas (up 0.37%) were the top sectoral gainers, whereas BSE Auto (down 0.67%), BSE Healthcare (down 0.54%) and BSE Consumer Durables (down 0.49%) led the losers.
The major Sensex gainers were DLF (up 1.82%), Jindal Steel (up 1.74%), Bajaj Auto (up 1.52%), Wipro (up 1.25%) and Infosys (up 1.21%). The main losers were Tata Motors (down 4.61%), State Bank of India (down 1.56%), Hindustan Unilever (down 1.36%), Jaiprakash Associates (down 1.31%) and Bharti Airtel (down 1.23%).
The best performers on the Nifty were Cairn India (up 5.09%), Sesa Goa (up 2.74%), Kotak Bank (up 2.68%), ACC (up 2.41%) and DLF (up 2.10%). Tata Motors (down 4.68%), SBI (down 1.90%), Sun Pharma (down 1.81%), Cipla (down 1.66%) and Tata Power (down 1.50%) settled at the bottom of the list.
Markets in Asia, which opened higher on supportive cues from the US, lost steam and most of them closed lower. While media reports of China's proposal to buy Italian bonds boosted the bourses across the region in early trade, a sharp dip in the European markets resulted in a sell-off late in the day.
The Shanghai Composite declined by 1.06%, the Jakarta Composite fell by 0.55%, the Straits Times lost 0.52% and the Taiwan Weighted tumbled 2.88%. On the other hand, the KLSE Composite added 0.12% and the Nikkei 225 gained 0.95%. Markets in South Korea and Hong Kong were closed for a local holiday.
Back home, foreign institutional investors were net sellers of stocks worth Rs934.74 crore on Monday. On the other hand, domestic institutional investors were net buyers of shares worth Rs427.93 crore.
The country's largest software exporter Tata Consultancy Services (TCS) today said it has partnered Felda Prodata Systems for joint development and delivery of IT services and solutions in the Malaysian market. Under the agreement, both organisations will jointly develop and market IT solutions and services to local companies, Malaysian government-linked companies and global companies within Malaysia. TCS added 0.59% to close at Rs991.50 on the NSE.
Cairn India (up 5.09%) was the top gainer on the Nifty as the company's board is to meet on Wednesday to approve payment of royalty and cess on its mainstay Rajasthan fields. The company's UK parent Cairn Energy had in February opposed changes in the Rajasthan contract, making it liable to pay royalty and a cess of Rs2,500 a tonne.
Workers at auto component-maker Munjal Showa's Manesar plant resorted to a strike today that hit production, an indicator that the labour unrest at Maruti Suzuki India's unit in the region is spreading to surrounding areas. The workers were protesting against the transfer of two of their colleagues from the Manesar plant to Gurgaon. The stock gained 0.78% to Rs64.75 on the NSE today.
The popular group buying website that is backed by Groupon , the world’s largest group buying business, delivers items ten days after customer cancels duplicate order. Company directs another customer who received a defective watch to contact the merchant
Group buying sites such as SnapDeal, Deals4U, SoSasta, moneysaverprime, mydala taggle, are the latest buzzwords in the retail space, promising hefty discounts to consumers, who are part of their group. But it's not all good news.
Complaints are pilling up against SoSasta, one of the popular websites that offers discounts on products and services, with consumers accusing the company of deficient services and not delivering the orders.
According to these consumers, SoSasta delivers faulty products and gives incorrect information on various discount deals. What's worse, it seems that the company pays no heed to complaints and does not have any grievance redressal mechanism. SoSasta is backed by Groupon, the world's largest online group buying business.
Gaurav Sawhney described a harrowing experience with the company. On 24th August, he ordered a few products from SoSasta.com and due to a mix-up his friend ordered the same products too. Eventually they ended up with two similar orders. So Mr Sawhney contacted the company the following morning, and after noting down his order number, the company attendant confirmed that one of the orders was being cancelled.
Ten days later, he was shocked to receive both the orders. Mr Sawhney contacted the company again, but he was told that the order could not be cancelled. After going back and forth, SoSasta informed Mr Sawhney that his order was shipped before he called to cancel.
"Can a shipment be sent by a premier courier company and reach in 10 days? It cannot, hence the fact is that I had placed the request way before it even reached the merchant for shipment. If even it had reached the merchants, are there no processes to cancel the order," he asks.
This is not an isolated case. Consumer complaint forums on the Internet have many such cases, stating either non-delivery of products despite payments, or receipt of defective products. Surprisingly, a majority of these issues remain unresolved as customers do not even receive a reply from the company.
"I bought a wallet from (the) website, (it's) been more than a month (and I have) not received it and already made the payment of Rs500. I am calling them up (the company) but there is no response," complains Shreya on www.grahakseva.com.
Another complaint on consumercomplaints.com says, "I have purchased Reebok watch from the www.sosasta.com on 26th July. When I received, it was stopped (non-functional) and in a defective condition. I mailed and complained them so many times, but they are saying that the merchant is blacklisted now, so you have to send the watch to merchant and ask for replacement, we can't do anything. It's now more than a month but they are not responding."
A detailed email to the SoSasta about these complaints was not answered till the time of publishing this article.