Money & Banking
Here's why NAMC may fail to deal with large NPAs

Will the experiment of handling large NPAs through a new entity, National Asset Management Company -NAMC, succeed? The slow legal process and low accountability at all levels are big hurdles


The proposed National Asset Management Company (NAMC) is expected to take over large non-performing assets (NPAs) from lenders and revive them. If these assets are to be transferred to NAMC, it follows that these have failed the benevolent corporate debt restructuring (CDR) test, and are unviable. How will the NAMC restore viability of these projects, except by way of significant write-offs? Who will fund such write-offs? What will happen to the factors that have led to such large NPAs? These issues will have to be boldly resolved if an NAMC has to succeed.

There are assignable causes of large infrastructure (and other) NPAs of public sector banks (PSB) or state-run banks. The NPAs have resulted from the banks’ inadequate project evaluation, disbursements before mitigation of project development risks, and lax monitoring.

For example, in case of coal-based power projects, the banks disbursed loans before the letter of assurances from the coalfields for coal supply could be translated into bankable take-or-pay contracts; in the case of an ultra-mega power project, the banks had left the country risk for coal supply/ cost unmitigated, which eventually affected the project company adversely.

In the case of many toll road projects, the lenders did not mitigate the land acquisition and traffic risks aside from the sponsor risks. Issues in project cost evaluation of toll road projects by the banks were evident from a study by the Ministry of Road Transport and highways in 2011, that showed that on an average, banks had lent 39% more than the project cost arrived at by National Highway Authority of India (NHAI).

Banks add soft costs such as preliminary and pre-operative expenses and interest during construction, to the project cost. Besides, the accurate construction cost emerges after design finalisation.

Yet, the debt being 39% more than the project cost estimate of the NHAI, reflects asset overstatement which benefited the sponsor firms that were awarded project construction contracts on nomination basis.

Engaging lenders’ engineers (LEs) for cost evaluation has obviously not helped the banks, as these LEs have business relations with the sponsors.

Although there is no study to evaluate quality of the assets for which the debts were raised by the institutional arrangers, it is likely that the institutional arrangers have also contributed to the current NPA scenario. No wonder foreign banks are completely absent in Indian project finance.

For the NAMC to succeed, it will have to ensure that the responsibility for causing financial distress is allocated to major participants, i.e. the sponsors, lenders, and the government, and the sacrifice is shared equitably by these participants.

The NAMC will need to infuse value in the projects by completely mitigating the project development, construction and operating risks, and harvest the value later. Experiences from all over the world show that an efficient legal system is sine-qua-non for the success of ARCs.

Hence, for the NAMC to be successful, there is no option but to speed up the legal process through amendments in Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) and The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) acts, and adding large number of Debts Recovery Tribunals (DRTs) supported by e-governance, so that matters are adjudicated within a stipulated time frame. Continuance of a half-hearted approach will render the NAMC useless, and eventually lead to a systemic crisis.

Over the last three decades, India has seen several pro-creditor legislations for resolving bad loans or NPAs, starting from Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) that was meant to expedite the revival of potentially viable sick units and closure of unviable ones through the quasi-judicial body Board of Industrial & Financial Reconstruction (BIFR). The BIFR has not met the intended objective.

The RDDBFI Act, 1993 was enacted to provide for expeditious adjudication and recovery of dues of banks and financial institutions from defaulting companies, through the DRT set up under the Act.

Owing to the legislative loopholes, judicial pronouncements, and poor administration, DRTs have not achieved the intended objective, and the 33 DRTs across the country have backlog of over 42,000 cases with defaults exceeding Rs1.40 lakh crore as on 31 March 2013.

Failure of DRTs to adjudicate the matters within the stipulated 180 days had been evident since the beginning. To remedy the situation, the government promulgated SARFAESI Act, 2002 under which lenders can seize secured assets except agricultural land, from defaulters directly.

Section 17 of the SARFAESI Act allows borrowers or any aggrieved party to appeal against acquisition of assets by the lenders. Such appeal, in terms of the Act has to be disposed of within a maximum period of four months.

This adjudication (of appeals) is also handled by the same over-burdened DRTs with the result that such appeals take years to resolve. In addition, collusive suits by defaulters with their cohorts in other courts induce years of delays. As a result, NPAs accumulate and the underlying assets are stripped, to the detriment of lenders.

Then the ARC experiment started which, as explained in yesterday’s article, hasn’t worked. We need a thorough redesign of the way we handle bad loans, starting with the origin to resolution, with accountability fixed at each stage.

(Rajendra M Ganatra is Managing Director & CEO of India SME Asset Reconstruction Co Ltd-ISARC. He had over 25 years of experience in project finance, asset reconstruction and financial restructuring. The views expressed in above article are personal)



Sunil Karunakaran

2 years ago

Plain speak at it's very best! Kudos to the author for saying it just the way it is!


2 years ago

The author of the Article has dwelt on the malaise affecting the judicial system in the country which needs to be drastically over hauled.The judicial system can not work on borrowed ideas but on its implementation in the right perspective.
The Government and the Regulatory Authorities must wake up to the realities as expressed by the Author and find means of quick results rather than justice delayed is justice denied


Veeresh Malik

2 years ago

Thank you for an informative series of articles on the subject pf NPAs.

One observation I have is that draconian laws like SARFAESI are used for even small debtors, who do not have the wherewithal to escape the various possession based provisions, while the larger NPAs keep at it forever.

What is a solution for what we can then call "consumer insolvency", say ticket size below 10-20 lakhs, in such cases? Or even higher amounts, if the debtor is an individual and not a body corporate?


Rajendra M Ganatra

In Reply to Veeresh Malik 2 years ago

I can understand your anguish. Unfortunately large debts are non-recourse (to the promoters)and small debts are with full recourse. So the small borrowers run the risk of total stripping.

The small business folks must act on sound investment & financial advice which unfortunately is scarce. Besides government needs to expand credit guarantee schemes.

Complan, Dominos, Marico, Career Launcher and Radico Khaitan get ASCI rap for misleading ads

ASCI upheld 121 of the 140 complaints it received in May, ads that were banned included those promising to cure baldness, removal of unwanted hair, kidney stones without surgery, A+++ ratings for colleges and the usual surrogate alcohol ad. If only, some of them were true


The Advertising Standards Council of India (ASCI) said during May, its Consumer Complaints Council (CCC)  upheld complaints against 121 out of 140 advertisements. Health & Personal Care category continued to lead with the highest number of complaints received in May 2014, ASCI said.

The CCC found following claims in print ads by 39 different advertisers were not substantiated and thus, violated  ASCI  Guidelines  for  Advertising  of  Educational Institutions and  hence  the  complaints  against these ads were upheld


The CCC found the following claims in health and personal care product or service ads of 66 advertisers, released  in  the  print  media  /  TVC to  be either  misleading  or  false  or not  adequately  / scientifically substantiated and hence violating ASCI’s Code. Some of the health care products or services ads  also contravened  provisions  of  the  Drug  &  Magic  Remedies  Act.  Complaints against the following ads were UPHELD.

1.  Diabacure: The advertisement of the product Diabacure claims that use of the said product cures of diabetes  

2.  Mukherjee  Ayurved  Ashram:  The  advertisement  claims  that  it  is  ‘World  No.  1  &  can  cure smallness  of  penis,  thinness,  crookedness  and  make  penis  long,  thick  and  shapely  and  cure premature ejaculation, nightfall, impotency, nil sperm count and increase desired sex time’. Also it claims that it has ‘no side effect’ and is ‘100% Ayurvedic medicine’.  

3.  Vaidban Ayurvedic Products: The advertisement claims successful treatment of kidney stones without operation and successful treatment of STDs and impotence.

4.  Sun Pharmaceutical: The advertisement of Rid‐Tobac claims to be ‘100% herbal’. It ‘helps get rid of cigarette, bidi, gutka, masala, tobacco addiction knowingly or without the knowledge of the addicted person.’  

5.  Dabur India Limited’s Odomos Naturals: The advertisement claim that Odomos provides all day protection from mosquitoes to children was misleading by omission as it does not provide clear instruction of the level of application and period for reapplication.

6.  Reckitt Benckiser Healthcare India Ltd: The Dettol Soap advertisement’s claim that ‘Only Dettol gives  10x  more  protection  against  germs’  was  misleading  as  the  advertiser’s  product  with germicidal actives was compared against products without germicidal actives. Dettol being the “only” effective product was not substantiated by comparison with other products in the market with germicidal actives.  

7.  Rana Clinic: The advertisement claims ‘successful treatment for having child. Those couples who are upset because of not having their own child and feel defeated after consulting everywhere are now happily living their life with a child after coming to us. Get successful treatment at any age for any  mistakes  made  in  childhood,  weakness  due  to  any  reason,  premature  ejaculation, childlessness, small size problem.’

8.  Humi Herboceuticals: The advertisement of Immuno Booster Plus claims to increase immunity, rejuvenate body tissues etc. in human beings.  

9.  Marico Ltd: The advertisement of Nihar Naturals Shanti Amla Hair Oil claiming that it is enriched with 500% vitamin E was misleading as the comparison was being made with a product marketed in 2010Hindustan Unilever Ltd: The TVC of  Fair & Lovely suggests that fairness is essential for a girl to match a boy in status or essential when a girl is to get married or grow up in hierarchy at work place   

10. Anjali  Mukherjee:  The  advertisement  features,  Dr.  Anjali  Mukherjee  stating,  ‘make  a  healthy choice for your family.’ The endorsement by Ms Anjali Mukherjee as a Doctor or Nutrition Expert “Make a Healthy Choice for your family” was not substantiated and was considered misleading.

11. Looks Cosmetic Clinic: The advertisement claims that with the HCG Weight Loss programme customers can lose upto 10 kgs in 40 days. The before and after visuals were misleading.

12. Kangra Herb Private Limited (Kangra  Herb Health Centre): The advertisement claims that ‘it has succeeded in destroying virus of severe diseases by organic herbs brought from Himalaya, CERAGEM ‐ It is one such machine which cures all types of diseases by laying on it for one hour no side effect, no bhasm, no steroid required, successful treatment of Leucoderma (White Spots), Psoriasis, Parkinson, Muscular Dystrophy, Heart Disease, Asthma, Piles, Ovarian Cysts, Diabetes, Migraine, IBS, Allergic Rhinitus, Obesity, Eye Problem & is 100% Ayurvedic.’

13. Dr Batra’s Homeopaty Clinic: The advertisement claims to cure migraine  

14. GlaxoSmithKline  Consumer  Healthcare  Ltd  (Horlicks):  The  advertisement  claims  that  single sachet of Horlicks has Iron content equivalent to 75 grams of almonds. The visuals of almonds in conjunction with the claim “Tej Dimaj” created a perception that one serving of Horlicks would provide all the nutrients that almonds are very well known to have.   

15. Shathayu Herbals (Fat Fit Kashayam): The website advertisement claims of reducing excess fat from the body by improving metabolism to make one from FAT to FIT.

16. Naveena Slimming & Cosmetic Clinic: The advertisement claims ‘to be India's No. 1 slimming and cosmetic center. It claims 100% guarantee in slimming, cosmetic, hair, laser, boutique and beauty salon.’

17. Diabliss Consumer Products Private Limited: The advertisement of Diabliss Herbal Cane Sugar claims that it is ‘for diabetics and pre‐diabetics, can be used by everyone at home. Tested in hundreds of type I and type II diabetics for periods ranging from 3 months to 4 years.’  

18. V Care International: The advertisement claims to be a first time launch of a fairness injection in Odisha.  

19. Amrut Hair Oil: The advertisement claims that Amrut Hair Oil stops hair fall completely in 1 week, in case it doesn’t, open bottle can be returned.

20. Outston: The advertisement claims that Outston provides freedom from kidney stones.  

21. Leukogo: The advertisement claims that patients troubled from Leucorrhoea can get rid of it in 10 days at Leukogo.

22. Venus  Remedies  Limited:  The  advertisement  of  Ezenus  claims  to  be  World’s  first  anti  stress herbal candy.

23. Heinz India Pvt. Ltd (Complan): The advertisement claims that 1 pack of Complan gives you the strength of more than 5 litres of milk.  


24. Sukhayu Ayurved: The advertisement claims that ‘Ayurveda has authentic way to get rid of body toxins in just 15 days.’  

25. Olefia Biopharma Limited: The advertisement of Kum Kum Syrup claims to cure problems related to undeveloped ovary or risk of miscarriage or weakness resulting in unsuccessful conception. The syrup also claims to cure problems related to hormonal imbalance during puberty resulting in improper breast development. The therapy also cure post‐delivery problems related with loose vagina.

26. Vaidhyanath Aushadhalay: The advertisement claims to be world no.1 in curing smallness of penis, thinness, crookedness and helps in making penis long, thick and muscular. Cures premature ejaculation, impotency, spermlessness and increases desired sex time. It has no side effect with 100% ayurvedic medicine.

27. Dr.Green Tulsi: The advertisement claims that one drop of Dr. Green Tulsi will help in curing problems related to cough, nasal catarrh, sputum, flu, dengue, fever, malaria, joint pain, stone, obesity, blood pressure, sugar, allergy, intestinal worms,  urinary tract inflammation, arthritis, asthma, piles, ringworms, scabies, itching, head ache, pyorrhoea, nosebleed,  swelling in the lungs, tiredness etc.  

28. L'Oreal India Private Limited: The advertisement of Garnier Fructis Long & Strong claims “Now get even stronger hair with improved formula”.

29. VLCC Health Care Ltd: The advertisement of VLCC Health Care Ltd claims of losing 4 kg before summer vacations start or get money back.  

30. Emami Limited: The advertisement of Emami Fair and Handsome Cream & Face Wash claims to be World’s No. 1 Fairness Cream for Men.

31. Joy Cosmetics: The advertisement of Joy Skin Fruits Active communications Sun Lotion claims to have fruit SPF that protects against sun darkening naturally.  

32. Vini Cosmetics Private Limited: The advertisement of Delicca Powder Face Wash claims that it doesn’t have sodium laureth sulphate as its harsh on delicate skin and most of face washes have sulphate.  

33. SBL Private Limited: The advertisement of SBL Homeopathic Services claims to have clinically proven to be the only homeopathy R&D Lab approved by the Ministry of Science and Technology.  

34. Shathayu Ayurveda: The advertisement of Shathayu Ayurveda claims that the detox process removes fat‐soluble toxins and improves metabolism. The paste massages help in spot reduction, tummy tuck, inch loss and weight loss.   

35. Vaid Rishi Herbals: The advertisement of Arsh Kalp Capsules claims to cure piles through three doses in three days and the medicine being replacement for surgery.  

36. Ayurwin Pharma Pvt. Ltd.: The advertisement of Nutrigain claims to increase weight within a week of consumption of the product.   

37. Homecare International Pvt. Ltd: The advertisement of Homecare International claims to be leaders in world class homeopathy.  

38. Groom India Salon & Spa Pvt. Ltd.: The advertisement of Naturals claims to be India’s No. 1 hair and beauty salon.  

39. Om Sai Ayurveda India: The advertisement claims to cureing obesity; otherwise money would be refunded.

40. Nova Beauty Care Private Limited: The advertisement of Nova Fairness &Youth Lotion claims that lotion will give instant fairness and has natural sunscreen.

41. Akanksha Ayurved & Panchkarm: The advertisement of Akanksha Ayurved & Panchkarm claims  to have successfully treated patients with obesity and related problems such as high cholesterol, blood pressure and diabetes. It has no side effects and doesn’t require any operation or yoga.  

42. Hi‐Tech Sweet Water Technologies Private Limited: The advertisement of Hi‐Tech New Life AA Plus claims to protect from water borne diseases, strengthens the digestive system and helps in maintaining health with better immunity.

43. Glamour World Ayurvedic Private Limited: The advertisement of Sornis Ayurvedic Glow Hair Shampoo claims to stop hair fall and greying of hair.

44. Dr.Sabnis  Jeevanrekha:  The  advertisement  claims  to  provide  India's  only  Sahstrashuddha, Complete, Ayurvedic Safe Sulabh treatment beauty solution. Get assured results in 6 days.  

45.  Health Total: The advertisement claims to provide services for weight loss. They have over 4 lakh clients.   

46. VLCC Health Care Ltd.: The emailer advertisement claims to have clinically proven that they have faster  and  long  lasting  way  of  losing  weight.  Offers  weight  loss  body  contouring  and  skin tightening. Results can be seen from the first session with a money back guarantee.

47. Nirmal Ayur Life Private Limited: The advertisement of Nirmal Ashwatul claims to be herbal immunity booster for men. The visual implies product is meant to enhance sexual pleasure.  

48. Dr. Dassan’s Ayurvedic Herbal Formulations: The advertisement of Dr. Dassans Self On claims to give fast recovery treatment for all types of paralysis and other neurological disorders. The advertisement also claims Dr. Dassan Ayurvedic Herbal has cured innumerable paralysis patients. It has now introduced only patented medicine “Self on Neuro Capsule” for patients of paralysis without any side effects. “Self On Neuro Capsule” when consumed after the attack cures the clot and saves the cells from weakening or damage so that new patients can become self‐dependent in a short period of time.    

49. The Body Care: The advertisement of Body Care makes a claim that one can ‘reduce weight within 9 days. The advertisement also claims  that,  if one achieves weight loss of 5 kg with the help of Body Care, then the programme prescribed by Body Care for losing the next 5 kg will be offered free of cost. The advertisement makes similar claim for 10 kg as well.

50. AG Herbs (Singapore) Pvt. Ltd.: The advertisement of OPTM Health Care claims to be No.1 chain of pain clinic in India. Dr. Apurba Ganguly having extensive international research of 30 years spearheads OPTM Health care. His treatment protocol depends on patent filed for bio‐energetic natural  phyto  medicines  which  enter  the  pain  affected  areas  through  the  skin  into  the  blood system and bring relief permanently. Strengthens tissues, muscles and cartilages and gets rid of pain.  

51. Baidyanath Ayurvedic Clinic: The advertisement claims to give “permanent solution to health problems such as: High Blood Sugar, Sex Problems, Women’s Problems, Obesity, and High Blood Pressure. All medicines are approved by Drugs Control of India.”   

52. Ambic  Ayurved:  The  advertisement  of  Kamroz  Capsules  claims  to  remove  weakness  due  to increasing age, tiredness, lack of enthusiasm, looseness of body etc. and infuses passion, strength and  self‐confidence.  The  capsules  are  made‐up  of  essential  herbs  which  have  an  ultra‐power booster recipe which is beneficial for providing new energy and pep in the sensory organs. This increases self‐confidence and maintains joy for a long period of time  

53. Vrushali Slimming Centre: The advertisement of Vrushali Slimming Centre claims to be India's one and only super specialty center for both men and women with ISO 9001‐2008 certification.  

54. Hygienic Research Institute P. Ltd.: The advertisement for Super Vasmol 33 Kesh Kala claiming “Naturally black” hair was considered misleading.  

55. Dr  Paul's  Multispecialty  Clinic  Private  Limited:  The  advertisement  claims  to  be  ‘trusted  by millions/trusted by lakhs, , most developed hair increasing treatment which is effective in all state of baldness whatever may be the reason,  visuals accompanied by tagline, ‘You’re never too late at Dr. Paul’s. imply cure of baldness’  

56. C‐Cube: The leaflet advertisement claims to give ‘100% results guarantee or money back. First of its kind ULTRA LIPO treatment, introducing most advanced hair re‐growth treatment, hair PRP, in only 3 sessions, get 100% results’.  

57. Sai Clinic: The advertisement claims to be ‘100% ayurvedic, treatment of all STD and disease like excessive masturbation, erectile dysfunction, premature ejaculation, impotency and small crooked penis’.

58. Dr.Batra’s Homeopathy Clinic: The advertisement claims ‘94% patient satisfaction’ as well as ‘a revolutionary hair growth treatment from France.’   

59. Bajaj Corp Limited: The advertisement for Bajaj Nomarks claims to remove dark circles in just four weeks & “marks se no marks sach mein possible”.

60. Deewal Gram Udyog Sansthan: The advertisement for Deewal BH Plus Hair Colour claims to be ‘100%  herbal  hair  colour  powder,  this  does  not  cause  chemical  allergy,  it  does  not  contain chemicals i.e. PPD, Peroxide, Ammonia etc., which are very harmful, it stops excess greying of hair, men and women who suffer from hair greying can use this completely safe product because this stops further greying of hair.’

61. Jay Shree Pharmaceuticals: The advertisement for Dantavali  Massage Powder claims to be ‘helpful  in  opening  the  mouth  wide  open,  get  rid  of  spots  and  stains  in first  use,  gargle  with Dantavali  Mouth  wash  twice  a  day  to  prevent  stiffness  of  jaws  and  ill  effects  of  consuming tobacco‐ mava‐gutka‐ masala.’

62. Akashdeep Hospital: The advertisement claims that it is ‘successful treatment of epilepsy, brain attack, adrang, survicle, waist pain, slip disc, injury of head, spinal cord, trembling of hands and falling  asleep,  at  the  accident  treatment  center,  cut  limbs  are  joined,  successful  treatment  of patients who have consumed poison is done.’

63. Sri Satguru Hospital: The advertisement claims to ‘get rid of unwanted hairs permanently, by ayurvedic  herbs, no  laser or machine, no side effect, positive result and no need to consume medicines.’  

64. Nutrition 2 Health: The advertisement claims that:  

•  Wheatgrass Powder ‐ Rejuvenate Aging Cells with Wheatgrass  
•  Wheatgrass rejuvenates the aging cells  
•  Helps fights tumours, cleanses the blood, can reverse grey hair and tighten the loose and sagging skin
•  Gulp a day keeps the tumour away
•  Jamun Chips & Juice ‐ Works Wonder for Diabetic Patients ‐ Keeps Heart diseases at bay

The CCC found following claims in print ads by 39 different advertisers were not substantiated and thus, violated  ASCI  Guidelines  for  Advertising  of  Educational Institutions and  hence  the  complaints  against these ads were UPHELD –  

1.  IIT Kalrashukla: The advertisement claims that ‘with Karlashukla you get into IIT or get your fees back. If you don't make it, we return the fees, no questions asked’.

2.  Sinhal  Classes:  The  advertisement  claims  to  give  ‘scholarships  worth  Rs.5  crores,  minimum scholarship of Rs.10, 000 for every qualified student. Also claims that ‘Sinhal IIT is Mumbai's No.1. IT facility’. ‘For the first time ever, the all‐star top guns from other IIT coaching institutes under one roof.   

3.  Ideal 21st Century: The advertisement claims ‘Scholarships worth Rs. 5 Crore, ‘highest selection rate in JEE advanced.

4.  Ideal 21st Century: The advertisement claims ‘How ideal 21st century scores over other institutes:  

•  Best  Results  Advantage:  28%  selections  in  JEE  Advanced  ,  67%  in  Medical,  Monopoly  in Olympiads & KVPY, Highest Score in Boards
•  Faculty Number Advantage: ‘Mammoth faculty Team comprising of 150 Teachers for IITs, NITs & other reputed universities & colleges’, ‘Expert Head Advantage: Expert heads who have enabled students across India in producing All India top 100 Ranks in IIT‐JEE, AIIMS, AIPMT, MHCET’
•  Teaching Experience Advantage: Combined Teaching Experience of over 520 years for both Competition & Boards
•  Competition & Board Faculty Advantage: Separate expert faculty teams for Competitive Exam Prep & Boards Prep so that competition and Board prep go hand in hand
•  Integrated Tie‐up Advantage: 25 integrated Tie ups across Mumbai with major boards (CBSE, ISC, Maharashtra) to give school and  competitive prep under one roof
•  Multiple Revision Advantage: Timely Course completion and at least twice revision
•  Innovative Course Material & Rigorous Testing Advantage: Over 6000 pages material designed by experts of Kota & Hyderabad, Over 250 chapter‐wise, part & full tests
•  Coach  Advantage:  Individual  Goal  Setting,  Periodic  Reporting  &  Feedback,  Remedy  after Tests, Academic Feedback Meetings, Motivation & Guidance


5.  Career Launcher India Pvt Ltd’s ‘Career Launcher’ claims that it is an ‘All India Leader in CLAT & IPM’, ‘India's No.1 Institute for Law Entrance Exam’, ‘confirm your seat in your dream institute in just 45 days’.  

6.  Kautilya Academy: The advertisement claims to have maximum selections for civil services and to be the best academy in Madhya Pradesh.

7.  Institute of Rural Management: The advertisement claims that it is ‘Ranked A++ among the Top Business  Schools  in  India’,  ‘3rd  among  Top  Sectoral  B‐Schools  of  India‐ Competition  Success Review’,  ‘rated at level A2‐ Business Standard’ ‘7th among Best Sectoral B‐Schools‐ The Outlook’, ‘ranked  A+  among  Best  B‐Schools‐ Dalal  Street  Journal’,  ‘exceptional  100%  Placement  with renowned corporates’.  

8.  Tapasya Educational Institutions: The advertisement masqueraded in ‘breaking news’ format, thereby misleading audiences.  

9.  PCMS Trust: The advertisement of PCMS claims that drop out students get a degree with In 6 Months (One Sitting).

10.  Research Information Technology and Management claims to give degree within 6 Months.

11.  Kota  Mentors  Academy:  The  advertisement  of  Kota  Mentors  Academy  claims  to  give guaranteed selection in IIT with no fees if not selected. This is for first time in UP.

12.  JK Shah Classes: The advertisement of J K Shah Classes claims to have produced 25,000 + CAs more than any other institute in India.  Best performance at all India rank holders over the last decade with 287 CPT; 527 IPCC; 263 FINAL CA cleared exams.

13.  ACE Edutech: The advertisement claims to be India’s 1st and only coaching institute to provide real time ‘Online Exam Platform’.  

14.  Kangaroo Kids Education Ltd.: The advertisement of Kangaroo Kids Education Ltd claims to have  been  ranked  No.  1  preschool  by  Education  World  Magazine  for  their  ground  breaking teaching practices.

15.  Let’s Talk: The advertisement claims to enable people to “speak fluent English in 60 days”.  

16.  Vidyamandir Classes: The advertisement of Vidyamandir Classes claims to have achieved highest percentage of IITJEE selections among all ITTJEE coaching institutes across India.

17.  Krishna Theja Educational Institutions (Chadalawada Ramanamma Engineering College): The advertisement claims to be award winner‐2013 for Software Application Development as declared by Guinness Book World Records. They claim 100%placements.

18.  R  M  K  Engineering  College:  The  advertisement  claims  to  be  among  Top  5  Self  Financing Engineering college of Tamil Nadu which is based on university ranks. It has ranked 6th among Top 20 Engineering College in Tamil Nadu by Anna University based on pass percentage. Ranked 8th among Top 10 Engineering Colleges in South India by Silicon India Magazine for the year 2013. When ranked among other colleges pan India it is among Top 20 Best Engineering Colleges in India by AICTE‐CII Top 100 Engineering colleges in India by Outlook Magazine. The college ranked 'AAA' among top Engineering Colleges in India   'Careers 360' for the year 2013.  
Podar Jumbo Kids, Gateforum Educational Services Private Limited’s ‘Gate Forum’, Einstein College of Engineering, ICAT Design & Media College, Ascent Eduworld, Blossom Institute , The Institute of Banking Training (IBT), A K Vidyamandi’s Pace Setter, Ique Ideas, Eduwave Academy, Sensorium Coaching,  Uttam  Career  Institute  Private  Limited,  Global  Banking  School,  Hi‐Tech  Institute  of Advance  Technologies,  Nikhileshwar  Institute  of  Banking  and  Management,  Shri  Ram  Group, Symbiosis Institute of Media and Communication, Triumphant Institute of Management Education Pvt. Ltd, Aptech Limited’s ‘Arena Animation Academy’,  PERI Institute of Technology, Naukri Ghar.
Complaints  against  advertisements  of  all  above  educational  institutes  were  UPHELD  because  of unsubstantiated claims that they ‘provide 100% placement/AND/OR they claim to be the no.1 in their respective fields’.
1.  Radico Khaitan Ltd: As per the complaint “The You Tube advertisement shows Magic Moments Remix Music CDs which is a proxy ad for their flavoured vodkas.. The advertisement directly shows promoting their liquor product ‘Magic Moments Remix’ showing Flavour Up Life with 6 Magic  Moments Remix flavors ‐Orange,  Green Apple,  Lemon, Lemongrass Ginger, Raspberry, Chocolate  or  the  smooth  Grain.”  The  CCC  reviewed  the  TVC  and  considered  the  advertiser’s response. In the absence of supporting data from the advertiser, the CCC concluded that the advertisement was a surrogate advertisement for Magic Moments Remix flavored vodka.  The complaint was UPHELD.

2.  Jubilant Foodworks Ltd: As per the complaint “The advertisement of Dominos Pizza shows two roommates use a third roommate's credit card to order a pizza without his permission.  This is spreading an unacceptable message to youngsters to use someone else's credit card without their permission.”  The  CCC  viewed  the  TVC  and  considered  the  advertiser’s  response.  The  CCC concluded  that  TVC  depicts  credit  card  of  one  individual  being  used  by  another  without  his permission contravenes Chapter III.4 of the ASCI code. This complaint was UPHELD.
1.  Videocon Industries Ltd.: The advertisement of Kelvinator Supercool refrigerators claims that the product does not require a stabilizer. The complainant states that the cooling stopped due to a technical  reason  i.e  the  compressor  tripped  due  to  voltage  fluctuations.  On  enquiring  it  was suggested to the complainant that he should use a voltage stabilizer (with fuse) to avoid tripping but company marketed the product as 'STABILIZER NOT REQUIRED'. It is clearly misguiding users as even sales person are using this point to customers stating around Rs.1800 will be saved for a stabilizer free operation. In the absence of comments from the advertiser, the CCC concluded that the claims were not substantiated. The complaint was UPHELD.

2.  Hi‐Tech Sweet Water Technologies Pvt Ltd: The advertisement claims that Water New Life AA Plus purifies impurities and offers anti‐oxidant alkaline water which improves the immune system and ensures 100% attendance at school. In the absence of comments from the advertiser, the CCC concluded that the claims were not substantiated. The complaint was UPHELD.

3.  Easy Dry Systems Private Limited: The advertisement of Easy Dry Systems claims No.1 drying system. The CCC concluded that the claim, ‘India's No.1 drying system,’ was not substantiated. The complaint was UPHELD.  


1.  Cheil India P. Ltd.: The advertisement of Samsung Galaxy Star Pro claims that ‘Do Mahine ke Liye  Internet  Bilkul  Muft’  and  a  *  is  marked  saying  ‘1gb  2g  data  har  mahiney  muft’.  The complainant questions why this misleading statement ‘Bilkul Muft’ i.e. ‘totally free’ is being used when the offer is based on a condition. Bilkul Muft means totally free. The CCC viewed the print advertisement and considered the advertiser’s response.  The CCC concluded that the claim, ‘Do Mahine ke Liye Internet Bilkul Muft’, was misleading as the claim offer was subject to conditions. The complaint was UPHELD.  
2. Apple India Private Limited: The advertisement of iPhone 5S claims that the effective price of iPhone 5S as Rs. 41,010. This appears to be incorrect and to be a misrepresentation of facts.  The CCC  viewed  the  print  ad,  and  concluded  that  the  ad  distorts  facts  and  is  misleading.  The complaint was UPHELD.    
1.  Idea Cellular: The advertisement of Idea Cellular claims that the genuineness of Pashmina Shawl is confirmed when it passes through a finger ring.  A ring test is not at all a confirmatory test for certifying quality of a genuine Pashmina product.  It fact, it is learnt that shawls made out of synthetic fibre like viscose can also easily pass through a finger ring. The parameters under the GI Act are the only testing parameters to check the genuineness of Pashmina. The CCC viewed the TVC and considered the advertiser’s response.  A ring test is not a confirmatory test for certifying quality  of  a  genuine  Pashmina  product  and  the  claim  in  the  ad  was  not  substantiated  with authentic data. A non‐Pashmina material could also pass the ring test.  The CCC concluded that the Ad distorts facts and perpetuates a layman’s belief about testing Pashmina and, therefore, is misleading. The complaint was UPHELD.  

2.  MTNL Fiber Optics: The advertisement claims   100 MBPS Fiber Optics speed. But actually in 100MBPS connection the maximum speed will only be 10MBPS. The CCC viewed the ad and considered the advertiser’s response. The CCC concluded that the claim “100 MBPS Fiber Optics speed” was not substantiated.   The complaint was UPHELD.

3.  Hathway Cable & Dataco Pvt.Ltd. (Hatway Broadband Internet): The pamphlet advertisement of Hathway Broadband Internet claims 50 MBPS for Rs.599. No conditions or explanation in the pamphlet. In the absence of comments from the Advertiser, the CCC concluded that the claim, ‘50 MBPS for Rs.599’, was not substantiated. The complaint was UPHELD.    

1.  Ravindu  Toyota  Express  Service:  The  advertisement  of  Ravindu  Toyota  Express  Service claims to service car in just 60 minutes. In the absence of comments from the advertiser, the CCC concluded that the claim made in the voice over of the ad ‘To service car in just 60 minutes’ was not substantiated.  The complaint was UPHELD.    
1.  Indian Railway Catering and Tourism Corporation Ltd: The advertisement claims of flat 50% off on Calvin Klein Brand. But when one clicks the link there is not a single product which has 50% off. The complaint was UPHELD.   
2.  Import Express India Pvt. Ltd.: The advertisement of Shop your world shows at the top right of the site's landing page regarding an offer that states ‘Sign up & get Rs. 1000’. The sign in pop‐up makes the offer again with a disclaimer asterix. The CCC viewed the TVC and considered the advertiser’s response.   The CCC concluded that the claim ‘Sign up & get Rs. 1000’ in absence of any disclaimers was misleading as the benefits were restricted and conditional. This complaint was UPHELD.  


1.  A.A.N.B.M.: The use of Gautham Buddha's Picture by Gautham Beedi in the smoking business could cause widespread offense among the followers of Buddhism in Maharashtra. The misuse of the picture is offensive to the faithful and is causing deep resentment. The CCC viewed the packaging and considered the use of the picture of Gautam Buddha on the product packaging, in the light of  generally prevailing standards of propriety, to be offensive.  The complaint was UPHELD.
1.  Max Life Insurance Co. Ltd: The advertisement of Max Life Insurance claims that:
•  The advertisement contains some kind of disclaimer. But the disclaimer stays on the screen for just a split second.   
•  The aforesaid disclaimer was not read‐out.  
•  Before the disclaimer screen, there was another screen but the writing or narrations on that screen too were not readable.  
•  The writings screen had substantial written material. This written text screen plus the last disclaimer screen, appears to  have too much written information / disclaimer in one ad for consumers to sit and read, while watching television.’ The CCC viewed the TVC and considered the advertiser’s response.  The content / text shown in the TVC with mandatory disclaimer was not legible and did not stay on screen for adequate time. The CCC concluded that the ad contravened the ASCI Guidelines on Supers.  The complaint was UPHELD.  
2.  Kotak Securities Ltd (Kotak Securities): The advertisement claims to cut brokerage rates and provide  free  trading  software.  The  complainant  found  that  on  being  contacted  for  lowest brokerage  the  advertiser  was  charging  more  than  4  times  higher  brokerage  than  the complainant’s existing broker. The CCC concluded that the claim ‘Still paying high Brokerages with your broker?’ Switch to the Best Broker and get lower rates instantly’ was not substantiated and was misleading as it was promising rates lower than any other rate. The complaint was UPHELD.
1.  Sarthak  Entertainment  Pvt.  Ltd.  (Sarthak  TV):  The  advertisement  claims  to  be  No.1  Odia channel. But in fact it is positioned at No. 2.There is no mention of the source or criteria based on which the channel has claimed this position. In the absence of comments from the advertiser, the CCC concluded that the claim ‘No.1 Odia channel’ was not substantiated and the source of this
data was not provided. The complaint was UPHELD.

The break-up of the complaints upheld was as follows:


Health and Personal Care – 66 complaints upheld

Education – 39 complaints upheld

Food and Beverages – 2 complaints upheld

Consumer Durables – 3 complaints upheld

Technology – 2 complaints upheld

IT and Telecom – 3 complaints upheld

Auto – 1 complaint upheld

Online – 2 complaints upheld

Insurance and Financial Security – 2 complaints upheld

Entertainment – 1 complaint upheld



Ralph Rau

2 years ago

Can we develop a ranking for ethical advertisers based on ratio of ad spend to number of transgressions that ASCI has identified

Nifty, Sensex poised to make a major move– Thursday closing report

Nifty is likely to make a sharp move soon. It's bearish only below 7,590


The move on the Indian bourses on Thursday was an indecisive one. The S&P BSE Sensex opened marginally higher at 25,669 and moved in the range of 25,526 and 25,778 before closing at 25,589 (down 76 points or 0.30%). The NSE's CNX Nifty opened lower at 7,651 and moved between 7,630 and 7,709 and closed at 7,649 (down 23 points or 0.30%). NSE recorded a low volume of 72.54 crore shares. India VIX fell 1.12% to close at 14.1375.

The only five gainers among the NSE indices were PSE (0.52%), CPSE (0.45%), Energy (0.25%), Commodities (0.02%) and Dividend Opportunities (0.01%). The top five losers were IT (1.35%), Smallcap (0.78%), Service (0.58%), Midcap (0.47%) and Nifty Midcap 50 (0.39%).

Of the 50 stocks on the Nifty, 27 ended in the green. The top five gainers were ACC (2.97%), Jindal Steel (2.82%), Tata Steel (1.11%), Kotak Mahindra Bank (0.91%) and Bhel (0.89%). The top five losers were PNB (2.62%), Infosys (2.12%), HCL Technologies (1.82%), Bank of Baroda (1.64%) and Sesa Sterlite (1.56%).

Of the 1,605 companies on the NSE, 554 companies closed in the green, 970 companies closed in the red while 81 companies closed flat.

The government has opened up the defence and railway industries to more investment by foreign firms, in a move to attract more international capital and expertise to the sectors. The Union Cabinet on Wednesday approved raising the maximum amount of foreign ownership allowed in military-equipment making firms to 49% from the previous cap of 26%. It also agreed to allow up to 100% foreign direct investment in railway-construction companies.

Reserve Bank of India (RBI) Governor Raghuram Rajan says global markets are at a risk of a "crash". He said in an interview in Central Banking Journal. Rajan was prescient about the 2008 crash which is why people are paying a lot of attention to his comments.
Jindal Steel & Power (JSPL) (3.04%) was among the top three gainers in ‘A’ group on the BSE. The company gave a clarification in regard to the news item titled "Naveen Jindal to Exit Oil & Gas, Sell Stakes to Cut Debt", that its oil & gas is not a part of the consolidated results of the listed entity and it will as usual explore all possible options including monetizing / exiting non-core assets to cut debt.

Bhushan Steel continued to be the top loser (19.99%) today as well in ‘A’ group on the BSE. In connection with the Syndicate Bank bribery case, the anticipatory bail plea of Neeraj Singhal, vice chairman of Bhushan Steel was dismissed by the Delhi court.

Tata Steel (0.96%) was the top gainer in Sensex 30 pack. The company was recently in the news for ramping up production at its facility in the northeast of England to surpass its nominal 170,000 tonnes per year capacity to support rising customer demand.

Infosys (1.68%) and TCS (1.56%) were the top two losers in the Sensex 30 stock. IT stocks were affected after Cognizant Technology Solutions Corp at the time of announcement of Q2 results on Wednesday forecasted slowest full-year sales growth in its 20-year history.

US indices closed Wednesday flat with a positive bias.  On the economic data front, US trade deficit narrowed more than expected in June. The drop was driven by a 1.2% fall in imports, largely on account of a sharp decline in petroleum imports. On the other hand, exports edged up 0.1% supported by a surge in automobiles.

Except for Jakarta Composite (0.17%), Nikkei 225 (0.48%) and NZSE 50 (0.10%) all the other trading Asian indices closed in the red. Shanghai Composite (1.34%) was the top loser.

European indices were showing mixed trading while US Futures were trading in the green.


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