Federal Bank hikes interest rate on term deposits

The rate of interest for NRE term deposits for a period of 1 year to less than 3 years is 9.50% and for a period of 3 years and above is 9.25%

Federal Bank has hiked the rate of interest on both resident and NRE term deposits for a period of 1 year to 10%.

The rates of interest for resident deposits of other maturity periods are as follows:  7 days to 45 days - 5.00%, 46 days to 180 days - 7.00%, 181days to 199 days-8.50%, 200 days-9.50%, 201 days to less than 1 year - 8.50%, above1 year to less than 3 years - 9.50%, 3 years and above-9.25%.

The rate of interest for NRE term deposits for a period of 1 year to less than 3 years is 9.50% and for a period of 3 years and above is 9.25%.

Senior citizens are eligible for additional interest of 0.50% on resident term deposits.

The above rates are effective from 3 April 2012.

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Economy & Nation Exclusive
Trial Court frames charges on three RIL officials, after 14 years

In a case relating to recovery of four secret government documents from RIL’s office, the trial court has finally framed charges against V Balasubramanian, AN Sethuraman and Shankar Adawal after the high court and Supreme Court rejected petitions filed by the accused

A trial court in New Delhi has framed charges against Reliance Industries (RIL) and three of its officials, 14 years after the first information report were filed. The officials include RIL's the then group president V Balasubramanian, vice-president AN Sethuraman, and general manager (corporate affairs) Shankar Adawal. In a relief to Mukesh and Anil Ambani (who were the then managing directors of RIL), the judge said there was no material to suggest that the documents received by the accused officials reached them.

Additional sessions judge Narinder Kumar said, "Prima facie case for an offence under Section 5(2) punishable under Section 5(4) (wrongful communication) read with Section 15 of Official Secrets Act is made out against Company accused No 4 (RIL). Prima facie there is material on record to infer agreement and criminal conspiracy between Balasubramanian, Sethuraman and Adawal from the manner in which the information has been received and communicated.

"Since prima facie case is made out against them, they have to face trial for an offence punishable under Section 120 B IPC (criminal conspiracy) read with Section 5(2) punishable under Section 5(4) of Official Secrets Act," the judge ordered.

Paving the way for framing of charges against the company and its officials, the judge said, "This court finds that Reliance Industries has business interest in the field of energy, telecom, petrochemicals, textiles, etc and the above document containing particular information pertain to areas crucial to the interest of this company".
Earlier in May 2011, the Supreme Court dismissed the petitions of the three officials saying that these petitions did contain any merits.

RIL and its three officials are facing a criminal case under the Official Secrets Act over the alleged recovery of some secret documents during search of the office premises of Mr Balasubramanian, the then group president of Reliance Industries, in 1998. A criminal case was filed in 1998 by the Delhi Police against the company and its three officials for the recovery of the photostat copies of four classified documents, but later considering the sensitivity of the case, the investigation was handed over to the CBI (Central Bureau of Investigation) which registered a complaint in 2002.

According to a CBI spokesman, the secret documents were recovered from a "locked office table drawer" of the group's office located in a five-star hotel in New Delhi. "The initial searches were conducted by the Delhi Police at the Reliance offices in Hotel Le Meridien in New Delhi on 28 October 1998 during which certain important documents were seized. On the basis of those documents a case under the Official Secrets Act was registered against the three accused. The case was then handed over to the CBI which conducted raids on 13 November 1998 at six places in Delhi and Mumbai, searched the offices and residential premises of the accused and recovered some more documents," the spokesman had told media persons in 2002.

On 28 October 1998 a search of the office premises of Mr Balasubramanian led to the recovery of photocopies of four secret documents (37 pages). The first document (D-7) dated 14 September 1998 along with annexure related to the cabinet meeting on "Core Group on Economic Matters - Challenge of Economic Sanctions against India (5th meeting)". Document no. 2 (D-8) was also dated 14 September 1998. Document no 3 (D-9) was on the subject "minutes of the 37th meeting of the core group of secretaries on disinvestment" relating to meeting convened by cabinet secretary along with annexure relating to disinvestments in public sector undertakings.

Document no 4 (D-10), which was not a secret document,  was a letter dated 21 September 1998 from TS Vijayaraghavan, secretary, ministry of petroleum and natural gas addressed to Javed A Chaudhary, secretary (revenue), ministry of finance. The document pertained to "proposals in respect of rationalization of customs and excise tariff rates for the hydrocarbon sector."

"Prima facie it can be said that Reliance Industries had vested interest in having the information contained in the three documents (D-7, 8 and 9) so as to know as to what was going on at the level of the government on the subjects to which they pertain, and to take appropriate steps for the benefits of the company which is an association of persons and having a juristic personality in the eye of law," the trial court judge said.

Earlier when the matter was before the trial court and the high court, RIL had contended that the CBI failed to register the complaint within the time-frame of three years and as such the trial should not have been proceeded with. However, the high court refused to accept the contention that 142 days' delay in registering the complaint could be a ground to quash the proceedings before the trial court.

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Public Interest Exclusive
All you need to know about Opaque Fares

It all started out with Via.com offering a name-your-price kind of scheme in India. Others like Yatra.com, Cleartrip and MakeMyTrip offered similar schemes to bargain hunters who did not care what airline they flew or the exact schedule. While you could potentially be saving money on these tickets, they are sure not worth the headache you’ll go through

The hunt for cheap flight tickets has been as old as the day when airlines moved to a dynamic pricing model and all seats on a flight stopped costing the same price. The guy sitting next to you on the flight could have paid a fraction of your ticket price.

The last couple of weeks have been a lot of conversation about "Opaque Fares". While most of us are not so confident of e-commerce in India yet, we are happy to go out there and book our air tickets via the multitude of travel portals, since it gives the power of booking in our hands as compared to the travel agents earlier.

Last year, in their bid to expand their product offerings, some sites went out to experiment with a new offering where you could buy an air ticket fitting certain parameters and you could get it for cheap as long as you were not fussy about the airline you were flying. Airlines were hand-in-glove because they would receive an upfront cash payment for a slice of their inventory, even though they had to sell cheap. Since you did not know the airline you were flying, the exact schedule of your flight before take reserving your ticket, this practice was termed as 'opaque' fares.

In the western world, this concept had taken off with Priceline and Hotwire quite a while back. Priceline accumulated all the last minute unsold inventory and gave it away to bargain hunters who did not care what airline they flew and the airlines would get some revenue for a seat which would have otherwise gone empty.

In the recent past, it all started out with an upstart site Via.com offering a name-your-price kind of scheme in India. You select your destinations, your timeslots and your price, and the site would tell you if you could buy a ticket at your price or not. You don't know the airline yet, nor the exact time of your flight, or other details like will you be flying direct or stopping at two stops on the way. Once you pay up, you'll get an email with your ticket and the exact details you need to know to board the plane.

 
 

They further took it forward with a pre-paid scheme where they went about selling Rs 2,500 vouchers to travel anywhere in India as long as the passengers were okay not to know the airline before they paid up. Via.com was followed by many a portals such as Yatra.com, Cleartrip and MakeMyTrip which offered similar schemes with anonymous airlines being sold to customers

 

While most players of the industry were happy to fill up those empty seats on their planes, industry leader Jet Airways called these promotions "scam fares" and refused to participate in these offers. It also asked the regulator to look into the matter and intervene to stop the practice.

Jet Airways has good reason to complain. Everytime we fly on a Rs3,000 ticket from Mumbai to Delhi, we are flying below cost of that seat on the plane. Thanks to government-backed market competition (called Air India); airfares in India have been depressed for a long while. Some airlines had finally taken the leap to hike up fares again to cut their losses after Kingfisher Airlines almost crippled to a halt. And these fares, if they became big, would just mean you go back to selling tickets at a lower price again.

Another theory, though not validated in the open, was that all the portals had paid upfront cash to buy Kingfisher Airlines seats in bulk, and now that the airline was in trouble, they wanted to sell out cheap and make the best of what they had. And hence, these special prices, under whatever name they went, were a way to sell you Kingfisher Airlines tickets which you normally wouldn't touch due to their recent issues.

Directorate General of Civil Aviation (DGCA), the aviation regulator in India, has also recently intervened in the "opaque fare" discussion, calling the practice of 'opaque fares' a violation of the regulations and issued an order to all airlines to withdraw from this practice immediately. 

As I write this, some major portals have pulled out their opaque fare offers while some others are still continuing with these promotions. While you could potentially be saving money to the extent of Rs1,000-Rs1,500 or so on these tickets, they are sure not worth the headache you'll go through in case you end up being on a flight which is not to your preferences. So, buy only being aware of all the risks!

AJ writes a travel and aviation focussed blog from India at www.livefromalounge.com. You can follow him at @livefromalounge on Twitter.
 

 

 

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COMMENTS

A kumar

5 years ago

Via.com has stopped issuing tickets against its coupons which were sold from Rs 2500/- onwards. The reason given is the order of the DGCA of 28th Mach which does not allow opaque bookings. This seems to be quite conveniennt to them as it is difficult to meet commitments of booking for users at Rs 2500. So much for convenience of orders of DGCA.
However it continues to offer "upto 40% discount" on last minute bookings ( which is actually 3 days in advance) where the carrier is not disclosed and the scheme is equally opaque. This has left the coupon holders aghast while the company is happy to continue with its ways of booking.
Havn't they mastered looking at the bright side of things?
Of the Rest of Offers on the site, Incidentally, their 1 for 1 free domestic offer is valid only on bookings on Kingfisher, when sites such as Yatra prclaim that they do not offer Kingfisher seats.( Nothing against Kingfisher). We live in interesting times and a wonderworld of regulations. Enjoy!

REPLY

AJ

In Reply to A kumar 5 years ago

I've shot off a query to Via.com w.r.t. this discrepency. I assume the first offer of 2500 rs. etc was exclusive to Kingfisher and hence stopped. on the other offer they are still offering other carriers. Just a guess, till I hear from them.

A kumar

In Reply to AJ 5 years ago

The Rs 2500 Coupon offer was not exclusive to Kingfisher. In fact on the next day they increased coupon rates to rs 3000 and then introduced three different types of coupons Rs 3000,3499 and 4499 based on segment of travel. They are refunding all coupons as per announcement on their website.
"As per guidelines issued by DGCA (Directorate General of Civil Aviation) on 28th March 2012, they have barred us to issue tickets under this scheme now. We are thus not authorized to sell tickets under this scheme any more.

We regret to inform you that we will need to process a refund against the coupons issued to you".

The DGCA guidelines do not say that coupons can not be honoured. These were promissory notes for flight segments and should have been honoured. Even other carriers offer coupon booklets where the time,date and flight number is not given but can be booked with call centre. The Opaqeness criteria does not apply to coupons.
In any event, this should be decided by the regulator DGCA. In case they do not take a suo-moto recognition, perhaps moneylife should bring it to their notice.
I am going to great length to write these comments because not honouring of a promissory note is a serious matter, Cash has been paid upfront and the number of people affected is large.

Shekhar

In Reply to A kumar 5 years ago

Hello A Kumar,
I wasn't aware that VIA is now not honoring those coupons. So do they offer refunds, or have they decided to just give a lame excuse since they now have the upper hand as they are the ones now holding the payment.

Thanks in advance for your info.

A Kumar

In Reply to Shekhar 5 years ago

yes, their website says they are offering refunds. Good Luck!

Shekhar

5 years ago

Hi, I've been a reader of your blog and this column. I must say I disagree. First, there is no reason pointed out or evidence given that these "opaque" fares do not save money. The point of not discovering the airline is mentioned but thats something that the sellers of opaque fares have adequately disclosed.

Secondly, you just mentioned that the tickets "may" be on Kingfisher. No evidence towards that. And since the consumer wants to save money, he/she also assumes inherent risk and as long as the sellers of the "opaque" fares do not honor the tickets or do not refund the cost of the ticket in case of airline going bankrupt these are just allegations with no evidence.

I absolutely relish your insights but must say that this one is a bit disappointing.

REPLY

AJ

In Reply to Shekhar 5 years ago

@Shekhar,

I am not sure if we are on the same page w.r.t. the first point you make. I am stating at the end that you will save money but it is not worth the headache you go through.

Secondly, the theory of Kingfisher tickets being offloaded has been there around for a while. I have received quite a few mails via the blog where people have been disappointed with the deal they got since it turns out on Kingfisher Airlines and the chances of the flight operating are 50/50 due to their current conditions.

My view is clear, you will save money, but you also don't know what you are getting into, which is something i am apprehensive of personally. I'd rather pay some more...

Shekhar

In Reply to AJ 5 years ago

I think its mainly to do with the fact that such tickets are on Kingfisher inventory and not that the business model has a problem.
I absolutely agree that lower fares doesn't mean that the consumer should be given poor service whatsoever a.k.a Kingfisher. The airlines do get their share.

I do think that the DGCA directive goes against free market and rather than completely stopping all opaque (I frankly dislike this connotation) fares DGCA should take Kingfisher to task. Such models have been successfully implemented elsewhere and this somehow just reeks of cronyism on part of the other airlines.

sandhya kulkarni

5 years ago

very very useful... you have really done a lot of work! many thanks.

We almost got conned by Makemytrip, even without opting for these really cheap fares. After selecting the fares, you click and get a message that the particular fare is not available and they are bumping you up to the next cheapest fare and you pay more. So we switched to Cleartrip and guess what, no increase. So is it a con or what??

I must say we were so tempted- but caution kicked in & the suspicion it wud be Kingfisher. Alas what a fall for Kingfisher.. there was a time when one felt bad that it was more expensive and we chose cheaper options!!

p k

5 years ago

hi

yes I am a victim of this cheap fares.com

i flew from b'lore to Chennai , KF flight which took off after 3 hour delay..reached chennai at 13.30 hrs in place of 09 30 hrs. wasted 4 hours , for rs 1000 saving. just not worth it.
it is KF in most of the cases.

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