Companies & Sectors
DRT pulls up Diageo for delaying Mallya severance package details
Bengaluru : The Debt Recovery Tribunal (DRT) on Friday questioned liquor major Diageo for not yet submitting the specifics of $75 million severance package committed to embattled businessman Vijay Mallya.
 
"In my earlier ruling as well, I had directed the company (Diageo) to furnish the details of the severance package. Why it has not been placed before this court yet?" said DRT presiding officer C. R. Benakanahalli.
 
Benakanahalli directed Diageo to furnish the details of the severance package agreed with Mallya by May 12 in the hearing on applications filed by State Bank of India (SBI)-led bankers' consortium.
 
The SBI applied for first right on securing the $75 million severance package Mallya received on relinquishing the chairman's role at Diageo-owned United Spirits Limited (USL).
 
However, Benakanahalli overruled the bankers' demand to look into the case on a daily basis but promised to take it up on a priority basis. He posted the next hearing for June 2.
 
"As per the Supreme Court's direction, I have to complete the court proceedings into the matter in two months from the date of commencement of the hearing, so I will take the matter up on priority basis, not on daily basis, as I have many other cases pending before me, which also need timely disposal," he said.
 
Mallya's Kingfisher Airlines, grounded four years ago, owes more than Rs.9,000 crore to 17 banks.
 
Meanwhile, in an interview to Financial Times, Mallya said the charges against him are "preposterous" and that he was in "forced exile".
 
Mallya left for England on March 2, days before the bank consortium moved the Supreme Court to restrain him from leaving India.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Corruption, uncertain policies remain key concerns on India: Moody's
Corruption, policy uncertainties and slow implementation have constrained our assessment of India's institutional strength
 
New Delhi : Fiscal consolidation and moderate inflation are definite pluses for India, but graft, uncertain policies and their weak execution remain key constraints, according to Moody's Investors Service.
 
In an e-mail interview with IANS, Marie Diron, senior vice president for the Sovereign Risk Group, said the agency's assessment of India is based on its own evaluation, as also that of the World Bank on government's effectiveness, rule of law and inflation control. This is what she said:
 
"India's score are in the moderate range, reflecting checks and balances between the executive, legislature and judiciary, and increasing fiscal and monetary policy transparency," she said.
 
"However, corruption, policy uncertainties and slow implementation have constrained our assessment of India's institutional strength."
 
Moody's also expected fiscal consolidation to be gradual -- as a result of specific measures on which a consensus can be reached, rather than broad-ranging fiscal strategies. So high levels of government debt, at around 65 percent of GDP, will continue to be a constraint on India's rating.
 
"Besides the implications of fiscal policy for the government debt burden, the broad macroeconomic policy context has become more favourable to sustain growth. The government's repeated commitment to fiscal consolidation contributes to maintaining inflation at moderate level."
 
On the external sector, Diron said the impact on India of China's rebalancing, the general and economic developments there will be mainly indirect. This because the share of India's exports to China is much lower -- around 3.7 percent -- than for some other economies in the region.
 
"As a result, India would be affected by a slowdown in Chinese demand mainly to the extent that the global economy would be affected. Moreover, if such a slowdown were to lead to renewed falls in commodity prices, India as an importer of commodities would benefit," Diron said.
 
"Further, China's rebalancing may contribute to global volatility in capital flows. However, with narrower current account deficit financed by foreign direct investment, India is less vulnerable to a shift in investor sentiment and global capital flows than it would have been few years ago."
 
Diron's assessment comes against the backdrop of the caution by Moody's Investors Service that a prolonged worsening in asset quality of state-run banks was the main threat to India's sovereign credit profile, while suggesting that the government must recapitalise them with more money.
 
Moody's, which has given for India a credit rating at 'Baa3' -- or just a level above the junk category -- had said on Wednesday that it would consider a rating upgrade after 12-18 months, depending on improvement in macroeconomic parameters in India.
 
Nonetheless, its outlook on the country remained positive.
 
"Our positive outlook on India's rating is based on our expectations of continued but gradual policy efforts to reduce the sovereign risks posed by high fiscal deficits, volatile inflation and weak bank balance sheets."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Jyoti Dua

7 months ago

Graft stands out in as a major constraint in our progress. Govt needs to take up policies to curb graft at all level. In this area, the action at State level is almost absent.

D S Ranga Rao

7 months ago

Is it a testimonial for the Modi government that it is no different from its predecessor in so far as corruption and policy paralysis are concerned? Up to the government to pause and ponder over.

Notice being served on those named in Panama Papers: Jaitley
New Delhi : Notices are being served on those whose names figure in the Panama Papers leaks even as the newly-enacted black money act has resulted in "a certain level of compliance" and helped track black money parked overseas, Finance Minister Arun Jaitley said on Friday.
 
"I would like to say only one thing that for what ever cases are coming before the tax departments and others; notices are being issued under Income Tax Act and other relevant laws and actions are being taken," he told the Lok Sabha during question hour.
 
His statement came to supplementaries asked by members, including Nana Patole and Kirit Somiaya (both Bharatiya Janata Party) and B. Mahtab (Biju Janata Dal) on the tax evasion issue.
 
Jaitley, however, said any individual case could not be discussed. 
 
"I have stated this earlier also under the provisions of section 138 of Income Tax Act, an individual matter cannot be discussed in public. But in all cases whatever actions are necessary are being taken," he said.
 
Minister of State for Finance Jayant Sinha informed members that the appointment of a Special Investigation Team (SIT) by the National Democratic Alliance (NDA) government in 2014 had helped in the purpose of tracking black money both in the country and outside.
 
"SIT is doing a commendable job," he said, adding that recommendations of the SIT had helped investigating agencies and the government, especially with regard to black money stashed overseas.
 
"We have received a wide set of recommendations from the SIT. The recommendations have been included and efforts have been undertaken through the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, which was passed in this august House. This has resulted in a certain level of compliance.
 
"There has been a series of investigations and it is because of disclosures which we got through HSBC as well as through the International Committee of Journalists and most recent has been the Panama Papers, as finance minister has indicated, notices have already been sent out," Sinha said.
 
He said as far as domestic black money is concerned, a number of suggestions have been provided there including the disclosure of PAN card for transactions of Rs.2 lakh, restrictions on real estate, and so on which have been implemented.
 
Mahtab wanted to know if in the wake of reports from SIT and other agencies, the government is proposing any changes in the law to keep an eye on tax evaders.
 
"....has SIT suggested what new law is to be enacted which will minimise the creation of black money in the country?" he asked.
 
Somaiya however was pulled up by Speaker Sumitra Mahajan when he took the name of a popular Maharashtra leader, who is now in jail.
 
"You know everything, then why are you taking someone's name," Mahajan told him tersely.
 
Patole said the contention that agricultural income is growing cannot be true because, "if such is the case, then farmers would not be committing suicide" and Sinha agreed that there are instances of tax evasion by moneyed people when they show their income as agricultural income.
 
The minister also said there has been an increase of tax payers' network to 5.8 crore ever since the NDA government took over.
 
"We should not analyse this number based on the country's total population. It is only among the 25 crore households and chiefly from seven crore eligible tax payers in the urban pockets," Sinha said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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