LIC Housing Finance revises interest rates by 40-50 bps

Mumbai-based LIC Housing Finance has announced an increase in its home loan rates for new loans. For loans up to Rs30 lakh the rates will be 10.65%. For loans above Rs30 lakh & less than Rs75 lakh the rates would be 11% whereas for loans of Rs75 lakh up to Rs150 lakh the rates would be 11.50%.

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COMMENTS

DEEPAK GAUTAM

5 years ago

SIR, I WANT HOME LOAN . PLEASE STATE MINIMUM INTREST RATE

TDS is not only tedious, it is sheer harassment. Government must make interest from banks free from income-tax

As it is the returns earned on bank deposits is not keeping pace with inflation. Besides, people face innumerable difficulties in getting the correct tax certificates to file tax returns

As you walk to the income-tax office in Bengaluru, you will pass by a big hoarding outside that reads, "TDS is not tedious, it is the easiest". And the message at the bottom reads: "Bharo tax mauj hai max".



But the reality is totally different. Tax deducted at source (TDS) is one of the most obnoxious provisions in the Indian income-tax system, which causes unbearable harassment to the common man, who even after paying the tax cannot sleep in peace. As it is, the high rate of inflation, rising oil and gas prices, and the growing cost of living, have created a deep dent in savings. This is made worse by the tax laws, which have become regressive, on account of the failure of the government to bring inflation under control.

There are about 500 million people in the country with bank accounts, and at least half of these account holders may have term deposits in some form or other. All these depositors have been getting a negative real rate of return on their savings, due to the growing rate of inflation year after year. Though deposit rates have moved up, inflation has been rising much faster, eclipsing the slower growth in deposit rates. And as if to add insult to injury, the interest received on these bank deposits is subject to income-tax, which is deducted at source by the banks. This is putting an additional burden on the middle class in our country, making it totally unviable to invest in bank deposits. As a result it is driving the common man to invest in unreliable ponzi and money-multiplier schemes, which are thriving at the cost of the not-so-financially-literate middle class and lower middle class, who together constituted about half the country's population.

As if this agony is not enough,  all these bank depositors who honestly pay taxes on the interest received from banks on their deposits, have been suffering in silence for the past several years, because, day by day, they find it difficult to get TDS certificates from these banks, who simply do not bother to give the certificates on time. In the month of July that just gone by, people have been running from pillar to post to get TDS certificates from their banks, to enable them to file their returns on time.

Though it is mandatory for banks to send the TDS certificates to depositors every quarter, without their asking, barring a few banks, none of the major banks bother to send these certificates on their own. And very few bank customers are lucky enough to get the TDS certificates on their first visit to the branch. Because, more often than not, the counter clerks plead helplessness, either because computers are hanging, or they are not printing out certificates due to a software problem. And when you visit for the second time, it is more likely that the person who asked you to come the next day would be on leave and you will be forced to make a third visit to the branch to get what is rightly due to you.  

Another problem depositors' face is that different banks follow different systems of payment of interest and deduction of tax at source. Many banks just credit the net amount of interest after deducting tax, due to which the depositor will not know the amount of tax deducted till the TDS certificate is issued by the bank. In the case of cumulative deposits, where interest gets compounded with the principal, the depositor has no way of knowing the amount of tax deducted till he obtains a TDS certificate from the bank at the end of the year. And if you happen to withdraw the deposit before maturity to meet any emergency, the bank will recover from you some part of the interest already paid to you as penalty for premature withdrawal,  but will not refund any part of tax already deducted from you account.

Ironically, the agony has increased considerably since the introduction of computerisation in banks and income-tax offices. When the banks were operating in a manual environment, handwritten certificates issued by banks were accepted by income-tax offices at their face value and it was possible, though with considerable delay, to get a refund of excess tax paid, based on these certificates. But today, the income-tax department does not rely upon the TDS certificates issued by banks, unless they match with the information contained in the form number 26AS on the income-tax website. And it has been the general experience of bank customers that the TDS certificates issued by banks invariably do not match the 26AS statement of the income-tax department, as it is said that most of the banks outsource this work to private agencies that are not under their control, causing further problems for depositors. This has resulted in income-tax officers issuing demand notices even when appropriate tax has been deducted by the banks.

It is a no-win situation for the common man, as banks put the blame for the mismatch squarely on computers or external agencies, and thus a large number of depositors are left high and dry with no where to go to find a solution to this nagging problem of TDS. {break}
The anguish and anxiety of senior citizens, who almost wholly depend on the interest received from banks for their livelihood, is only to be experienced to be believed. To save themselves from the burden of TDS, they are required to submit form 15H to the banks concerned, at the beginning of every year, if their total income for the year is within the exempted limit prescribed under the Income-Tax Act. And this form is required to be submitted every time they make a fresh deposit with the bank, which is both wasteful and cumbersome.

The common experience of the majority of senior citizens has been that such forms submitted by them many times, either gets misplaced at the bank's branches or are not properly noted in bank's records, due to which tax gets deducted at source, forcing them to undergo the rigmarole of filing income-tax returns to claim refund of tax that has been wrongly deducted by the banks.

These are the real problems faced by a majority of bank depositors in our country. They have nobody to champion their cause as they are the silent intelligentsia, who are helpless pawns caught in this whirlpool of bureaucracy and the cesspool of corruption so rampant in our country. Is TDS, therefore, harassment or a punishment? You be the judge.

Whatever it is, there is an urgent need to find a lasting solution to this double whammy faced by the hapless depositors, who form the backbone of the country's banking system. The only plausible solution to free millions of our country men and women from this agony and suffering caused by the irritating provisions of the law and the complex systems of compliance is to make interest paid by the commercial banks on all their deposit accounts totally tax-free at the hands of the recipients. And this can be achieved without hurting government coffers, if the following suggestion is implemented by the finance minister in right earnest.

In the Finance Act 2003, the then finance minister announced a bonanza for corporate investors. By a stroke of the pen, he abolished income-tax on dividends declared by domestic companies and approved mutual funds, and made it totally tax-free in the hands of shareholders and mutual fund investors from 1 April 2003. This was a great boon to the investors in the stock market, who unfortunately form a microscopic minority in our country. This step mainly helped corporate bigwigs, the high and the mighty, the rich and the wealthy and high net-worth individuals, who invested in the stock market and reaped the rewards of tax-free income. Now there is no TDS, no income-tax and no harassment of investors in the stock market.

In order to compensate the government for the loss of revenue caused by this tax-free dividend, the finance minister introduced simultaneously the dividend distribution tax, to be paid by companies awarding dividends to their shareholders. This worked to the advantage of the government, who got taxes paid in the beginning of the year directly from the companies, when the dividends are declared, instead of collecting in piecemeal from the shareholders throughout the year.

While the this step touched only a fringe of the population, my current request is to extend the same principle to millions of people covering the middle and the lower middle class by declaring the interest received from the scheduled commercial banks free of income-tax at the hands of the recipients, thereby providing much-needed relief to the large body of bank customers and depositors, who have been at the receiving end of the blow caused by rising inflation and poor customer service provided by the banks. This is nothing new considering that all non-resident and foreign currency deposits held by NRIs are already tax-free at present and it is only the extension of such a provision to domestic deposits as well, which will put resident Indians at par with non-residents.

In order to bridge the budgetary deficit that might be caused by this step of freeing bank deposits from income-tax, the finance minister can consider levying interest payment tax on commercial banks at a nominal rate, to be paid by banks along with the advance income-tax remitted by them every quarter. This interest payment tax, based on the total interest outgo of each bank, on the lines of the dividend distribution tax, will be the best substitute for the tax presently levied on each deposit kept with the banks. This extra burden on banks can be easily absorbed by them as this will help the banks to considerably improve their deposit base due to tax-free benefits available on bank deposits and this will help them to increase profitability too, by substantially increasing their lending operations.

The benefits of this exercise for the people, the government and the banks, when implemented, can be summarised as under:

1. The biggest relief will be for the common man who has been suffering from the burden of high inflation and poor customer service from banking institutions.
2. The economy will get a boost as the savings rate will shoot up considerably due to bank deposits becoming an attractive investment destination for the common man.
3. The financial inclusion programme of the Reserve Bank of India will get a shot in the arm as banking will be hassle-free, tax-free and free from the complexities of taxation laws for all those who are brought into the banking system.
4. The banks in the country will be the biggest beneficiaries with bank deposits becoming the most attractive investment avenue for the public, and banks would be flooded with deposits, which through judicious lending, will improve their profitability considerably.
5. Due to the tax-free status of bank deposits, people in rural areas will be attracted to banks to invest their surplus funds, thereby serving the cause of rural population admirably and banks will be keen to open more branches in rural areas, which will benefit both the banks and the rural people.
6. There are about 90,000 branches of banks in India today and they will be saved from the burden of deducting taxes every now and then and filing innumerable returns to several authorities, thereby saving time, energy and money for the banks in the country.
7. The government in turn will benefit from getting taxes directly from banks in one go, helping the government treasury with better cash flow and improved management of funds.

If implemented, this will be one of the most people-friendly measures from any government in power and will go a long way to earn the trust and confidence of millions of people without any loss of revenue to the government. Can we expect the finance minister to act swiftly to change the laws, rules and regulations of income-tax and win the hearts of the people during this tumultuous year?

(The author is a banking and financial consultant. He writes for Moneylife under the pen name 'Gurpur'.)

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COMMENTS

chander parkash grover

5 years ago

it is a great problem, bank are not entering proper PAN detail, due to that
26AS does not match the payment deducted by the deductor on a/c of tds. I can't understand how the problem will be solved. either bank file revise return or assesee contact the clerk/asstt./ITO. they does not work without service charge

Nagesh KiniFCA

5 years ago

the 42 comments uniformly agree that they are victims of the tedious TDS.
MLF could do well to carry it forward by putting up a Position Paper after a Workshop to discuss this concern in depth. Govind Shanbagh's comment is extremely well made.

LCMonga

5 years ago

Many people are suffering the draw backs of the TDS system. Personally my assesment for last two Tax returns is pending and Refunds due remain unpaid because the Tax Deductors have not uploaded the TDS on the tax information network. It is incnvenience to the tax payer as well financial losses by way of loss of interest on the held up refunds.

RMRaina

5 years ago

TDS should not be applied to interest paid by banks on fixed deposits. It generally results in deduction of excess tax from honest taxpayers, and the refund of excess tax never comes

R Nandy

5 years ago

It is a very unfortunate situation that 15G and 15H forms need to be submitted very year and for every deposit.The IT dept should simplify it by having a single 15G or 15H form for a PAN number with a Bank so that there is no TDS associated with the PAN number.This will simplify life for the senior citizens and prevent errors at the bank level.

Govind Shanbhag

5 years ago

Mm Dalal Jee - TDS deduction and the resultant after effects with Income Tax has been a hot subject, and many citizens have suffered one time or other. It will be a good idea if you arrange a workshop, invite some senior chartered accountants, bank officials and with your repute some income tax commissioners for a lively discussion. You can even keep this session a paid session with entry fee and I am sure many will be benefitted.

Govind Shanbhag

5 years ago

Dear Shri Varshaney Sir - If you are having a problem with SBI, just send an sms on no.8008202020 (i repeat -8008202020) and type "unhappy", you will be surprised to get instant calls from all over and within 48 hours your problem will get solved. All the best.

REPLY

RS Varshneya

In Reply to Govind Shanbhag 5 years ago

Your suggestion is really great. I sent unhappy message, and some one from SBI/Mumbai responded. Since this issue is from Delhi the message has been transferred to Delhi. I am thankful for such a simple and great suggestion. Can I share this with my other friends?

R S Varshneya

5 years ago

I fully agree with the article. SBI/Rail Bhavan New Delhi where I hold my FDs have never issued correct F16. The entries in 26AS are much lower than what is deducted in the name of TDS. I use internet to know status of interest credited and TDS deducted. I have always found that 26AS do not show all the TDS and therefore I am forced to declare wrong income in my income tax returns.I write every week to Bank Manager to correct the 26AS by crediting all thr TDS deducted but he never ever has replied my any letter. I do not know to whom to approach and get the nagging problem set right.

Deepak Gupta

5 years ago

Certificates issued by PSU banks like SBI does not matched at all. Why the hell income tax office issues notice to them and penalise the concerned officer along with the bank for their failure to file the correct returns. They should be heavly fined fot their gross negligence.

REPLY

Prabal Biswas

In Reply to Deepak Gupta 5 years ago

I am with you Mr Deepak Gupta. The staff of most PSU banks along SBI think they are God's gift to man kind. They do us a favor by working. The ugly side nationalisation.

Nagesh KiniFCA

5 years ago

I've just been informed by the Manager of a PSU Bank that the Income Tax Dept. has served a notice asking him to show cause why penalty should not be levied. So much for doing the job of an unpaid tax collector!

Rajendra

5 years ago

TDS is realy hazardous to citizens.

Bhalachandra Singde

5 years ago

It is true that it is harrassment. Why to give the forms for not deducting income tax at source every year? Once I failed to give those forms, the Bank cooly deducted tax and when I claimed the same, it was allowed but the refunds I never got.

gp singh

5 years ago

All that and the worse is that TDS is applied to NRO Accounts even if you earn interest of Rs 50 per year! TO GET BACK A REFUND OF Rs 5 HOW MUCH WILL IT COST THE GOVT AND THE TAX PAYER!

REPLY

Govind Shanbhag

In Reply to gp singh 5 years ago

Mr.GP SINGH Sir - As per existing income tax rules entire interest earned on NRO savings and fixed deposit is taxable @ 33.30% irrespective of amount. However, if the country where the NRI is wroking has entered into double taxation treaty, then Bank is bound to deduct TDS at 10/12.5/15% - depending on the terms of treaty. However such NRIs have to submit DTAA every year (DOUBLE TAXATION AVOIDANCE AGREEMENT) which is almost like resident indians 15G/H form. However, if NRIs do not submit DTAA form, including after expiry of financial year it is mandatory to deduct tax at 33.3% (even when double taxation treaty is in vogue) and the concerned NRIs has to claim refund only filing tax return.

Sam Pochkhanawala

5 years ago

I agree full heartedly with the author. I'm unable to claim the refund due to me due the mismatches made in my 26AS report. Whenever I approached my bank(s) all they tell me is that its not their fault and they have submitted their deductions correctly. In one case the bank has deducted more TDS than the report submitted by them to TIN. All queries fall on deaf ears of indifferent executives at the bank(s).

Rinki sen

5 years ago

It is true TDS IS TEDIOUS, As am suffering for the same, Iam getting TDS certificate from my Principle SBI LIFE INSURANCE CO LTD, Continuous last 3 years, they are issuing TDS WITH Wrong PAN no, resulting not refunding my refund amount from income tax dept.Kindly sujjest what action i can adopt, KINDLY SUJJEST OR COMMENT.

Why are overage ships with improper documents being chartered for Indian ports?

New questions are cropping up everyday over the Rak Carrier and Pavit, but nobody is giving any answers; and all this is happening in the region of India’s biggest naval base

As the issue of oil from the tanks of the MV Rak Carrier and the MT Pavit start reaching the coastline and bays, as well as estuaries around Mumbai, the issues of the documentation around the two ships starts getting even murkier, as does what appears to be a combined effort to cover-up. The fact remains, however, that unlike in the case of the similarily overage MSC Chitra, where a specific collision caused very specific damage to the ship before it went down more or less intact by way of oil tanks and other spaces, in the case of the Rak Carrier a progressive breakup is going to create havoc, and in the case of the Pavit the complete mystery of how a ship that was allegedly sinking landed up off Mumbai with oil drums lashed and intact on deck is going to need more forensic capabilities than shown so far.

As seafarers all over the world know, the first thing that goes adrift and overboard, breaking loose from any restraint whatsover, are the lubricating and hydraulic oil drums stored on deck, simply because they are the most exposed items on deck. In the case of the Pavit, despite everything reported, the sight of oil drums merrily standing neatly made fast on deck is in itself as miraculous as, for example, the fact that the ship itself did not sink after being abandoned.

However, it is what appears to be a multiple cover-up in the case of the Rak Carrier that nurtures astonishment of a degree which is doing more than lifting eyebrows all over. This is over and above what appears to be a fairly well planned evacuation from the ship, to use a polite word, leaving it to sink at a location where it will cause yet some more hazards to marine life as well as other passing traffic. All this in the biggest naval base in India.

Consider this:

# The chief officer of the Rak Carrier, in an interview on TimesNow television, claimed that the ship had arrived in Mumbai as early as 12th July, and then took stores as well as fuel while anchored off Mumbai. How she managed this in the monsoons in the first case and without customs or immigration formalities in the other, is something that needs to be responded to. So far, there's been deep silence. Immigration comes under the Intelligence Bureau, so it is not possible to get this information under the Right to Information Act and as for customs it is absolutely likely that the ship simply did not inform the Indian Customs.
 
# There is still no response from anybody—neither the owners, nor charterers, or cargo interests, or the Directorate General of Shipping, or whoever-on what class this ship carries and who was responsible for declaring in the statement from the Press Information Breau that she was under Lloyd's Register, when Lloyd's themselves have published that they withdrew class in November 2010. How a ship was chartered in with cargo for India when she was not only very overage, but also without class is not being explained. Again, deep silence.
 
# The Maharashtra police have, as per reports, filed for "negligence" under the Indian Penal Code. This is about as easy as it gets, though prima facie, this epsiode smacks of criminal conspiracy, fraud and attempt to destroy evidence. There is no information on whether the ship's staff brought the hard discs of the various logs and data recorders on board, though they seem to have had time to get their packed bags, computers, personal documents and more.

# From the environmental point of view, it is amply clear that this is much more than just a state government issue. The impact of this specific pollution is going to be what it is, but it will embolden others to come and do what they want within India's economic zone, whether it is fishing or dumping oil and other pollutants. In addition, there is a national security angle, which again goes beyond the singular purview of the state. When are the central investigative agencies going to step in?

# A gazette notification was published on 29 December 2005 instructing all parties that ships bringing cargoes into India are to adhere to certain simple logical compliances as far as insurance and other related issues like pollution and wreck removal are concerned. This gazette notification was kept in abeyance soon thereafter, without any explanation why, on 2 August 2006. Here is the notice.

The text of the Gazette of India notification no. 403 dated 20 September 2005 is reproduced hereunder.

" G.S.R. 600(E) - In exercise of the powers conferred by Section 6 of the Indian Ports Act, 1908 (15 of 1908), the Central Government hereby makes the following rules to regulate the entry of vessels into Ports, namely:

1. (1) These rules may be called the Entry of Vessels into Ports Rules, 2005.
(2) They shall come into force on the date of their publication in the Official Gazette.


2.   Insurance cover:
Owner of a vessel entering a Port shall have to produce an insurance cover for compensation in relation to:
(i) Wreck removal expenses;
(ii) Pollution damage caused by spillage of oil or any hazardous and noxious substances; from a Protection and Indemnity Club which is a member of an International Group of Protection and Indemnity Club or a Club duly approved by the Central Government.

3. The vessel which fails to produce the insurance cover referred to in rule 2 shall not be allowed to enter the Port:
Provided that the provisions of these rules shall not be applicable to a non Safety of Life At Sea (SOLAS) Convention vessel if the owner of the vessel furnishes an undertaking for compensation to the port in connection with expenses which port may incur on removal of wreck and pollution damages caused.

4.  Explanation: 
Non Safety of Life At Sea (SOLAS) ships means a cargo ship with less than 500 gross tonnage (GT) and includes a ship engaged on domestic voyage, a domestic passenger ship and other small ship being used as fishing vessel and tug." {break}
However, on 2 August 2006, the same ministry deemed it fit to issue another gazette notification:
"The entry of vessels into Port Rules 2005 published in the extraordinary gazette dated September 20, 2005, vide No. G.S.R. 600(E) under Section 6 of the Indian Ports Act 1908 (15 of 1908) is kept in abeyance with immediate effect until further order of the Central Government of India".
That gives all of us an idea of the real direction that the central government is taking in context with the issue of insurance, or lack of insurance thereof, for ships visiting Indian ports.
 
Another circular/notification from the Directorate General of Shipping on the subject of overage ships, especially during the monsoons, is reproduced in its entirety, and nothing more need be said about the subject. It is another fact and truth that overage ships of all sorts regularly visit Indian ports, for what is known as "commercial considerations", of all sorts.
 
Shipping Development Circular No.1 of 2008


NO: SD-9/CHRT(82)/97-IV          Dated  25.04.2008                                                                               
Subject :  Revised guidelines for chartering of vessels under Sections 406 and 407 of Merchant Shipping Act ,1958.

Concerned by the rising trend of marine accidents in and around Indian waters especially during rough weather, the Ministry of Shipping, Road Transport & Highways set up a Committee in July, 2007 to suggest urgent measures to reduce marine casualties.  Since analysis of the accidents over the last 3 years showed a significant correlation between age of vessels and the break-downs which caused these casualties, the Committee recommended, inter-alia, the revision of guidelines to restrict the age of vessels plying in Indian waters and a tighter regime of surveys and inspections.
 
2. Accordingly, in the interest of maritime safety, it has been decided to modify existing guidelines for chartering of vessels under Sections 406 and 407 of the Merchant Shipping Act, 1958 (M S Act).  Existing  DGS Circulars Nos. 7 of 2003 dated 11.06.03 and 8 of 2003 dated 14.08.2003 (read with clarifications vide Memorandum dated 21.11.2003 and 31.12.2003), restrict only the charters of tankers to those which are less than 25 years (30 years in the case of gas carriers) and are CAS and CAP-2 rated and classed with IACS.
 
3. It is now further decided, after taking into consideration the views and objections of a wide range of stakeholders, that, with effect from 15th May 2008, applications for permissions for chartering in / grant of licence to vessels under Sections 406 and 407 of the MS Act either for single or specific voyages or time charters that enable vessels to visit an Indian port or to ply in Indian territorial waters or the Indian EEZ will be entertained only as follows:

3.1 During the period of foul weather, being 1st June till 31st August in the Arabian Sea along the West Coast and 1st May till 30th November in the Bay of Bengal along the East Coast of the Indian Peninsula:

3.1.1 From all cargo vessels - other than gas carriers, oil or product tanker and   dredgers - only if they are less than 25 years of age. 

3.1.2 From gas carriers, only if they are less than 30 years of age.

3.1.3 From oil or product tankers, only if they are double hull or if single hull, less than 20 yrs and fulfilling the Condition Assessment Scheme (CAS) requirements as assessed by the Indian Register of Shipping (IRS) or Classification Societies that are notified as Recognized Organizations by the Government.   Consequently, SD Circulars 7 and 8 of 2003 giving guidelines for chartering of oil and product tankers will stand modified accordingly for the period of foul weather.

3.1.4 For all time charters of vessels other than passenger vessels, to be entered into with effect from 15th May, 2008, which include in the period of charter any period of foul weather, only if the age of the vessel proposed is less than 25 years at the time of termination of the charter period.
 
3.2 Regardless of the period of the year - from Offshore Service Vessels (OSVs) of all description (e.g. anchor handling tug, accommodation barge, tug, supply vessels, support vessels, barges, pontoons, etc.) or any other type of vessels which are chartered-in / engaged for the purposes of  plying in and around offshore oil exploration areas and / or where security/safety sensitivities are high, only from those that are less than 25 years old, are classed with the Indian Register of Shipping (IRS); and    have undergone inspection and rectification of deficiencies of hull, machinery, safety appliances and operational requirements (e.g. manning, etc.) before entry into Indian territorial waters.

4. All shipping companies, exporters, importers and agents may kindly take note of the change in eligibility of vessels for consideration of grant of chartering permissions and amend their own chartering terms, practices and instructions accordingly.

5. This issues with the approval of the Director General of Shipping and Ex-Officio Additional Secretary to the Govt. of India.

Sd/-
(Samuel Darse)
Deputy Director General of Shipping


MEMORANDUM

NO: SD-9/CHRT(82)/97-IV    Dated 13.05.2008

Subject : S.D. Circular No.01 of 2008 - Clarifications regarding

This Directorate has been receiving numerous correspondences seeking clarifications on Shipping Development Circular No. 01 of 2008 dated 25.04.2008 issued by this Directorate regarding revised guidelines for chartering in  of vessels under Section 406 and 407 of the Merchant Shipping Act, 1958. The matter has been examined further and it is clarified as follows:-

1. The said Circular does not apply to Indian Flag Vessels, as they are registered and already licensed to ply in Indian waters.

2. The said Circular applies to all vessels chartered in under Section 406 and 407 of the Merchant Shipping Act, 1958 except vessels already carrying the Indian Flag.

3. The said Circular is applicable from 15th May 2008. It therefore does not affect vessels licensed under section 406 and 407 before 15th May 2008, even, if the existing license overlaps the rough weather period. 

4. Clause 3.1.4 of the said Circular stands amended to read as follows:
 "3.1.4. For time charters of vessels other than passenger vessels, to be entered into with effect from 15th May 2008, which include in the period of charter any period of foul weather, only if the age of the vessel proposed, is less than that specified in Clause 3.1.1, 3.1.2 and 3.1.3 for the respective category of vessel, at the time of termination of the charter period".

5. This issues with the approval of the Director General of Shipping and Ex-Officio Additional Secretary to the Government of India.

Sd/-
(Samuel Darse)
Deputy Director General of Shipping


Moneylife shall file the required RTI applications in these cases.

User

COMMENTS

Rajiv Ahuja

5 years ago

Pertinant questions that have to be answered by the concerned authorties.

malq

5 years ago

Comment from a seafarer friend:-

""Very true. these ships (20 yrs) wd not be allowed in US/European waters. they are then sent to 3rd world countries, where "for a few dollars", everything goes. i believe in the u.s you have to stop 1000 NM away and if u haven't given the coast gd 4 days notice u will not be allowed. they come on board. the crew, incl master have to fall-in on the foc'sle and almost strip searched, cabins, documents, and cargo checked. Also lets not forget, the US is a "martial state", where one in four people are actively involved with the defence/armament industry. There soldiers and sailors are respected and well paid. Unlike India where the the politicians and most bureaucrats haven't a clue of matters relating to the defence of the country. (They are too busy raking in the bucks.) Ofcourse if this were to be done in india, the govt would have to greatly increase the defence and coast guard's budget and acquisitions, which they are not willing to do.

Our own indian co. merchant vsls are no better. driven like mules till they break down! Captains have nightmares handling these 'derelicts' near the oil installations, where a small mistake/machinery failure could lead to a major accident.


food for thought.""

ready steady go

5 years ago

It will be very interesting to know how many people who previously worked in dg shipping or mmd are now on the payroll of the multiple foreign class societies insurance companies flag of convenience states and similar. for example panama shipping office in mumbai is a pure commercial enterprise but works on diplomatic basis and hires a few likewise others. this is bigger than dgca scam but who will speak. just do tally of ships in port today for indian ports and see how many are overage. jigri pugri karta hai.

REPLY

malq

In Reply to ready steady go 5 years ago

Thank you for writing in.

Personally, I think that if a DGCA style investigation is done on the various aspects of DGS, then the results will be even more revealing. From the examination and training system all the way up to ship inspection/registration and shipping development . . . nothing is sacred anymore and everything goes - or so it seems.

Even now, the responses from DGS are amazing, to say the very least.

rgds/malQ

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