Economy
SC permits NDMC to e-auction Taj Mansingh Hotel
New Delhi, The Supreme Court on Thursday allowed the New Delhi Municipal Council to go ahead with the e-auction of the property housing the iconic Taj Mansingh Hotel here, currently run by Tata Group's Indian Hotels Company Ltd. (IHCL).
 
An apex court bench of Justice Pinaki Chandra Ghose and Justice Rohinton Fali Nariman said the IHCL will have six months to vacate the building -- known as Taj Mansingh -- in case the New Delhi MUnicipal Council (NDMC) does not succeed in its e-auction. 
 
The court said the NDMC will keep in mind that the IHCL has an unblemished track record in hotel management. 
 
Appearing for the IHCL, senior counsel Harish Salve told the court that the proposed auction was not right as they have certain contractual rights for lease renewal.
 
Pressing for the right of first refusal if the property housing Taj Mansingh was to go under the hammer, Salve told the court that at some point "we must get renewal opportunity as our track record has been unblemished". 
 
The IHCL had challenged the Delhi High Court's October 27 order dismissing its plea against the auction of the property by the NDMC.
 
The apex court had ordered for a status quo on November 21, 2016,
 
Earlier, a division bench of the Delhi High Court had reiterated the September 25 single-judge order that dismissed an IHCL suit to renew its licence and upheld the NDMC's decision to auction the property.
 
The property, owned by the NDMC, was given to IHCL on a 33-year lease that ended in 2011. The IHCL has since been managing the property on several extensions it has got from the municipal council.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Investments via P-Notes stood at Rs 1.78 lakh crore at March-end
Chennai, Investments through Participatory Notes or P-Notes route in the Indian stock markets touched Rs 178,437 crore at the end of March 2017, the market regulator Securities and Exchange Board of India (SEBI) said on Thursday.
 
According to the data released by SEBI, total investments in equity, debt and derivatives via P-Notes shot up to Rs 178,437 crore at the end of March 2017, up from Rs 170,191 crore at the end of February this year.
 
The investment figure via P-Notes route at the end of January 2017 was Rs 175,088 crore.
 
P-Notes are instruments issued by Foreign Institutional Investors (FII) to overseas investors, who want to invest in the Indian stock markets without registering themselves with the SEBI.
 
According to SEBI data, the investments in equity and debt excluding derivatives at the end of March 2017 stood at Rs 124,277 crore, with equity alone attracting Rs 111,803 crore.
 
The P-Note investments in debt and derivatives at March-end stood at Rs 12,475 crore and Rs 54,160 crore, respectively.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

RAVI RAM PV

1 week ago

Everyone who matters, is interested in keeping this farce of p-notes going. Suits many in 'suits'.

RBI's latest moves precursors to Ind-AS implementation: Jefferies
Mumbai, The RBI's latest notifications to force banks to report deviations from prescribed asset quality norms and under-provisioning for bad loans, and take in higher standard asset provisioning across risky sectors, particularly in telecom, point to the implemention of Indian Accounting Standard (Ind-AS) next year, a US consultant said on Wednesday.
 
"Starting March 2017, banks will need to report differences, if they exist, if (a) additional provisioning assessment exceeds 15 per cent of reported net income, or (b) additional incremental NPL (non-performing loans) identified exceeds 15 per cent of reported NPL increase for the reference period," American investment banker Jefferies said in a research note. 
 
"It's a good start, but unfortunately, banks will currently only report the AQR (asset quality review) differences of FY16, which is not convincing enough that banks will come clean," it said. 
 
The non-performing assets (NPAs), or bad loans, of state-run banks at the end of last September rose to Rs 6.3 lakh crore (almost $100 billion), as compared to Rs 5.5 lakh crore at the end of June 2016. 
 
"Banks are to take in higher standard asset provisions, and build higher provisions on telecom sector owing to current distressed financials," Jefferies said regarding a related RBI notification.
 
"In our opinion, this rule is perhaps an early experiment starting with the telecom sector, as banks move towards Ind-AS implementation wherein they need to work with 'Excepted Loss' behavior instead of 'Realized Loss," it said. 
 
Ind-AS are the accounting standards applicable for companies in India.
 
The RBI on Tuesday cautioned banks about loans given to companies in sectors in difficulty such as telecom that may witness rising bad loans.
 
Banks were asked to put in place a board-approved policy for making provisions for standard assets at rates higher than the regulatory minimum, based on evaluation of risk and stress in various sectors.
 
"The telecom sector is reporting stressed financial conditions, and presently interest coverage ratio for the sector is less than one," an RBI notification said.
 
"Board of directors of the banks may review the telecom sector latest by June 30, 2017, and consider making provisions for standard assets in this sector at higher rates so that necessary resilience is built in the balance sheets should the stress reflect on the quality of exposure to the sector at a future date," it said.
 
"Besides, banks should also subject the exposure to the sector to closer monitoring," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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