Money & Banking
SBI-led consortium to take over Mallya's 'crown jewel'
The move to take possession of 17,000-sqft Kingfisher House at Vile Parle, is part of the efforts by the consortium to recover Rs6,800 crore loan they had granted to long-grounded Kingfisher Airlines
 
Clamping down on Vijay Mallya-led United Breweries (UB) Group to recover loans, a 17-bank consortium led by State Bank of India (SBI) on Tuesday initiated process for taking over physical possession of the prized Kingfisher House, worth Rs100-crore.
 
The move to take possession of over this 17,000-sq ft Kingfisher House at Vile Parle, near the domestic airport in Mumbai, is part of the efforts by the bank consortium to recover the Rs6,800 crore loan they had granted to the long-grounded Kingfisher Airlines. The lenders had started the recovery process way back in February 2013 after the airline stopped servicing the debt.
 
Kingfisher House is one of the prime real estates of the airline, which was once touted as the most luxurious carrier in the country and one of the crown jewels of Mallya-led UB Group. The airline was grounded in October 2012 while its flying permit was cancelled in December that year.
 
When contacted, a senior SBI official confirmed the development.
 
“On behalf of the lenders’ consortium, we were supposed to take possession of Kingfisher House today... We will be taking physical possession of the property,” SBI’s Deputy Managing Director & Group Executive for Stressed Assets Management Parveen Kumar Malhotra had said.
 
When asked about the status of the Income Tax (I-T) and Service Tax Departments’ claim on the same property, Malhotra said they have to discuss that with the tax authorities and any decision will be taken only after that.
 
In December 2013, the I-T Department had moved a Bangalore court seeking to direct banks to first settle its dues of Rs350 crore after the lenders sought to take possession of Kingfisher House citing that the property was attached by the department under the IT Act.
 
 

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SEBI bars Basil International, 12 individuals from market

Kolkata-based Basil International as well as its promoters and directors have also been asked to refund money collected, with returns that were promised to the investors

 

Market regulator Securities and Exchange Board of India (SEBI) has imposed a four-year ban on Kolkata-based Basil International Ltd and 12 individuals, including directors, from accessing the capital market for illegally raising funds from investors.
 
The company has been directed not to access the capital market "from the date of this order till the expiry of four years from the date of completion of refunds to investors," according to SEBI's 28-page order.
 
Besides, SEBI also barred 12 individuals, including Basil International's promoters and directors, Manindra Kumar Basu, Jayanta Kumar Basu,  Susanta Kumar Jana, Mohammed Afaque Ahmed and Nirmalendu Bhowmik from markets.
 
In addition, Satya Narayan Karmakar, Sourindra Nath Mukherjee, Biplab Talukdar, Susanto Chatterjee, Monami Basu, Sadhan Kumar Nandi, Sarmistha Sengupta Saikia, Korobi Sengupta, Kaushik Chattopadhyay and Promothesh Banerjee are restrained from accessing the securities market with immediate effect. 
 
In case of failure of these entities to comply with the directions, SEBI said it would take appropriate action, including recovery proceedings.
 
The company as well as its promoters and directors have also been asked to refund the money collected through issuance of redeemable preference shares (RPS), with returns that were promised to the investors.
 
It was found by the SEBI that these shares were issued in violation of Companies Act norms.
 
"In case of delay in making the repayments, the company, its promoters and directors, shall jointly and severally, return the money collected from its investors with an interest of 15 per cent per annum at half yearly intervals from the date of this order till date of actual payment," it said.
 
"The above directed interest on the delayed payments shall be over and above the returns that are due to its investors of such instruments," the order said. 
 

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COMMENTS

Amar Kumar

4 months ago

Pl.pay my money

Deb Narayan Garain

1 year ago

We are not finding any person related to Basil International Ltd office then to whom we shall pursue for refunding our invested amount?
Krishna

Deb Narayan Garain

1 year ago

We are not finding any person related to Basil International Ltd office then to whom we shall pursue for refunding our invested amount?
Krishna

Deb Narayan Garain

1 year ago

SEBI is doing good job but in what process may we get refund money from Basil International Ltd as our maturity period of investment has been completed.
D.N.Garain
Dumka, Jharkhand

Budget: Modi govt likely to stick to fiscal discipline

According to Nomura, the union budget is unlikely to be affected by the outcome of the Delhi elections and the BJP government is likely to stick to fiscal discipline

 

Finance Minister Arun Jaitley would present the Narendra Modi government's second Budget on 28th February. Nomura said it expect the Budget to kick start public investment in infrastructure and incentives for Prime Minister Modi’s medium-term initiatives such as Make in India and Digital India are likely to be the highlights. Increased public spending on infrastructure and lower subsidies will likely be seen (by markets) as a better quality of fiscal consolidation, it said.
 
"In our view," Nomura said, "the union budget is unlikely to be affected by the outcome of the Delhi elections and the Bharatiya Janata Party (BJP) government is likely to stick to fiscal discipline.”
 
 
 
Here are key expectations of Nomura from the Union Budget...
 
The government to stick to fiscal discipline: to meet fiscal deficit target of 4.1% of GDP in FY15 and target 3.6% in FY16. Accordingly, we expect net market borrowings to rise slightly to Rs4.8 lakh crore in FY16 from Rs4.5 lakh crore in FY15, and gross borrowing to rise to Rs6.5 lakh crore from Rs6 lakh crore (due to higher redemptions).
 
Public investment in infrastructure to be the key focus with capital expenditure to rise from 1.8% of GDP to 2.5% of GDP. The financing of higher public investment may be done by pruning subsidies, increased asset sales and through other off-balance sheet channels.
 
Quality of fiscal consolidation should be better as subsidies fall due to lower oil prices (from 2% to 1.4% of GDP) and capital outlay on infrastructure increases.
 
The budget is expected to provide an incentive for Prime Minister Modi’s flagship programs such as renewable energy, clean India mission, make in India, digital India and the smart city initiative.
 
To boost fiscal federalism, expect an increase in the centre’s transfer to states (in line with 14th finance commission recommendations), greater flexibility for states in spending money transferred under the centrally sponsored schemes and compensation to states for GST implementation.
 
For capital markets, expect the government to formally mandate the Reserve Bank of India (RBI) to target CPI inflation within a band of 4% +/-2% over the medium term, announce the setting up of a bank holding company, postpone GAAR and extend the withholding tax of 5% on interest paid on rupee securities.
 
Other than the Budget, the focus is also on the railway budget (26th February), Economic Survey (27 February) and the progress made on legislative reforms during the Budget session (23rd February to 8th May) with pending approval of various ordinances on land acquisition, coal mining, non-coal mining, insurance FDI and the GST constitutional amendment bill.
 
Rates strategy: 
Nomura says it remain constructive on India bonds. "Given the higher gross supply for FY16, we expect bonds to develop some supply concession in March ahead of the beginning of bond supply in April. However, we believe supply considerations have no more than a tactical relevance at this stage. We suggest investors stick with a bullish bias in bonds, heading into the budget and beyond," it added.
 
FX strategy: Nomura says it remain short US dollar/Rupee given positive expectations on the budget, the strengthening economic cycle, progress in government asset sales, terms-of-trade benefits from low commodity prices, gradual rate cuts, less vulnerability of India to the global backdrop of US Fed policy normalisation, and our view of a step back in the RBI’s aggressive FX intervention.
 

 

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COMMENTS

MG Warrier

2 years ago

Let us rely on the technical competence of Namura and believe that its expectations are based on serious analysis. Common man’s expectation is that this budget (2015-16) will, in addition to addressing concerns of business houses, entrepreneurs, investors and beneficiaries of various government schemes, go a step further and express the new government’s vision as to how it will be moving forward in regard to (a) speeding up poverty elimination (b) management of public resources (c) handling issues relating to corruption and black money and (d) improving the morale of the workforce in both public and private sectors.
There are encouraging signals to indicate that this budget will be different from the earlier ones.

vishal

2 years ago

Winning or losing a election should not divert the BJPs motive to keep the country fiscal deficit in control and pave the way for economic growth. The die hard social crusaders championing the cause of poor are trying to save their political survival as we are seeing in Bihar. These vested interest will survive and always try to take the country's economy on retrograde path. A bold approach is very much necessary.

SuchindranathAiyerS

2 years ago

Nomura's forecast is encouraging that the Modi Government will stick to fiscal discipline. Let us hope that the budget is equally conservative:

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