Regulations
Government files complaint against Nestle with consumer disputes panel
The government on Wednesday filed a complaint against Nestle India with the National Consumer Disputes Redressal Commission (NCDRC), following the controversy over samples of Maggi noodles containing lead beyond permissible limits.
 
Food and Consumer Affairs Minister Ram Vilas Paswan told reporters here that the NCDRC will probe the matter and take appropriate action.
 
He said the government, for the first time, was taking action under Section 12-1-D of the Consumer Protection Act, under which both Centre and states have powers to file complaints.
 
He said as there would be delay in getting the reports from food safety watchdog FSSAI (Food Safety Standards Authority of India) and since it concerned consumers' health, the government decided to file a written complaint before the NCDRC.
 
Paswan said he did not know what will be the outcome of the FSSAI reports.
 
"If the FSSAI reports are found to be positive, it is a very serious issue," he said.
 
The minister defended FSSAI over the Maggi noodles controversy, and said if a company violated the standards, the regulator cannot be responsible for it.
 
Asked whether FSSAI was responsible for not checking the quality of Maggi, he said: "After getting licence, if someone does wrong and misleads the consumer, how can FSSAI be held responsible?"
 
He also said that until the inquiry was complete, the government cannot take action either against the company or the brand ambassadors.
 
The Delhi government on Wednesday banned Maggi noodles for 15 days in the capital, after 10 of 13 samples were found to contain more than the permissible quantity of lead.

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Real estate prices stagnant since 2007, says Residex. Is it true?
The Residex of National Housing Bank, which tracks residential property prices across 26 cities, reveals that property prices have not appreciated as much over the past seven years
 
 
Of the 26 cities tracked by the National Housing Bank’s RESIDEX, an index, which tracks residential property prices, just nine cities have reported an annual price appreciation of 10% or more over the past seven years. The combined average of the 26 cities reveals that property prices appreciated by just about 8% over the past seven years. While price appreciation in certain cities may seem reasonable, in other areas, the index data seems plainly wrong.
 
Property prices in Chennai gained the most, appreciating by as much as 20% annually over the seven-year period. Pune and Mumbai followed with a price appreciation of about 13% each. Bhopal reported an appreciation of 12.44%, while Ahmedabad reported a gain of 11.39% during the same period. Among the other major cities, Kolkata was at number 7 with a return of 10.81% and Delhi was at number 10 with a gain of 9.27%.
 
 
At the bottom of the list were cities like Bengaluru, which reported a growth rate of just 1.21% and Hyderabad that reported a decline of 1.01%. Even over the past two years, the index has gained an average of just 4.53%. Anecdotal evidence raises doubts.
 
During 2008-09, the prices of flats in Kalyan (East), in the Mumbai Metropolitan Region, were around Rs1,750 per sq ft. Last year, the prices went up to Rs5,500-6,000 per sq ft and as of today are being quoted at Rs4,600-Rs5,500 per sq ft in the same area. 
 

Similarly, at Viman Nagar area in Pune, the property (residential) rates per sq ft, were around Rs4,000 in 2008-09, which rose almost double to Rs7,500 as of June 2015.
 
NHB mentions that actual transactions prices are considered for the study in order to arrive at an Index. The source of the data is real estate agents or brokers by commissioning the services of private research organisations of national repute. In addition, data on housing prices is also being collected from the housing finance companies and bank, which is based on housing loans contracted by these institutions. 
 
Liases Foras, a real estate rating and research company, maintains a Real Estate Sensitivity Index known as RESSEX. According to this index, price in Mumbai’s central suburbs has appreciated by 13.59% from November 2007 to September 2014. This is in line with NHB’s RESIDEX. Unfortunately, index data relating to other cities during the same period is not freely available.
 
NHB launched RESIDEX in July 2007. It has been updated up to quarter ended September 2014. The index is currently being developed only for residential housing sector.
 
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Nifty, Sensex, Bank Nifty getting oversold – Wednesday closing report

There is a chance that the indices may bounce back a bit

 

We had mentioned in Tuesday’s closing report that NSE’s CNX Nifty is set to fall further. On Wednesday, the 50-stock index opened lower and continued to fall gradually until the beginning of the noon session. At 12.09pm, the benchmark hit its intra-day low and then moved in a range.
 
The S&P BSE Sensex opened at 27,231 and after hitting a high at 27,276, moved lower to hit a day’s low of 26,698. Nifty opened at 8,232 and moved from a high of 8,237 to the low of 8,094. Sensex closed at 26,837 (down 351 points or 1.29%) while Nifty closed at 8,135 (down 101 points or 1.23%). Bank Nifty opened at 17,978 and moved in the range of 17,978 and 17,567 before closing at 17,721 (down 256 points or 1.42%). NSE recorded a huge volume of 172.33 crore shares. India VIX rose 4.07% to close at 17.5050.
 
India's services sector fell back into contraction in May 2015 after experiencing growth for six successive months, the outcome of a survey from Markit Economics showed. The seasonally adjusted HSBC India Services Business Activity Index declined to 49.6 in May 2015, from 52.4 in April 2015.
 
Coming back to the stock market, Nestle fell 9.05% and it closed at Rs6,191.10 on the BSE. The company’s product, Maggi noodles, was put to test for containing lead levels exceeding the prescribed limit and use of the taste-enhancer monosodium glutamate (MSG) without proper declaration. The Delhi government has decided to initiate a case against the company for selling an unsafe product and impose a financial penalty for misbranding.
 
ITC fell 4.59% to close at Rs304.25 on the BSE. The Maharashtra government's has decided to ban the sale of loose cigarettes. The state government has also banned chewing tobacco in public places, say reports. 
 
NIIT Technologies rose 3.85% to close at Rs397.45 on the BSE. The stock was the top gainer in ‘A’ group on the BSE.
 
Unitech fell 35.27% to close at Rs8.70 on the BSE. It hit its 52-week low today. It denied on Wednesday what it called "false and misleading" market rumours of the company defaulting on repayments to lenders. It was the top loser in ‘A’ group on the BSE.
 
Coal India rose 0.81% to close at Rs386.70 on the BSE. It was the top gainer in the Sensex 30 pack. Tata Power fell 6.13% to close at Rs70.40 on the BSE. It was the top loser in the pack.
 
On Tuesday, US indices closed marginally lower. 
 
Except for Hang Seng (0.69%), KLSE Composite (0.45%), SET Composite index of Thailand (0.35%) and Straits Times (0.27%) all the other Asian indices closed in the red. Jakarta Composite (1.60%) was the top loser.
 
The HSBC China Services Purchasing Managers' Index rose to an eight-month high of 53.5 in May, HSBC Holdings said with both new orders and employment in the sector rising to multi-year highs. Activity outside the nation's factories during the month also came in above April's 52.9 reading.
 
European indices were trading in the green. 
 
US Futures too were trading higher. 
 
Greece's creditors reportedly reached a consensus on the terms of a proposed deal to put to the Greek government, however, Athens has yet to agree on the terms. Greece faces a €300 million ($327 million) payment to the IMF on Friday.
 
The European Central Bank is widely expected to reaffirm its commitment to its quantitative easing scheme after a monetary policy meeting later in the day.
 

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COMMENTS

V ganesan

2 years ago

today the shares of adani enterprises opened at rs. 573 in a shocking manner.I urge money life to take up the matter and take action with sebi nse and bse to cancel all trades above the price of rs,125. Because I doubt about the credibility of both exchanges.And how one can expect retail participation will grow with this kind of scam.This is because after demerger the price should open between 120 to 130.Lot of ordinary investors lost money without aware of the fact

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