The CJM at Lucknow sent the Sahara group chief, against whom the Supreme Court had issued a non-bailable warrant, to police custody till 4th March
Subrata Roy, the chief of Sahara group, against whom the Supreme Court had issued a non-bailable warrant, would remain in police custody till 4th March.
The chief judicial magistrate at Lucknow, which earlier reserved its order on Roy, had asked media and others to leave the Court. It then issued its order directing Roy to remain in police custody till net Tuesday.
While Roy requested the Court to be allowed to stay at home, the Uttar Pradesh police sought his transit demand.
Earlier on Friday Roy surrendered before the Uttar Pradesh police.
At the same time, his lawyers have also moved to the Supreme Court for cancellation of non-bailable warrant.
Appearing for Roy in the Supreme Court, senior advocate Ram Jethmalani told a Bench headed by Justice KS Radhakrishnan that 65-year-old Roy is in police custody.
He submitted that the Special Bench, comprising Justices Radhakrishnan and JS Khehar, which heard the case be assembled today to hear his application.
The Supreme Court, however turned down Roy’s plea, saying it is not possible for the Special Bench assembled today to hear it.
On Thursday a team of UP police visited Roy's home in Lucknow but could not find him there.
The Supreme Court on Wednesday issued a non-bailable warrant against Roy after he failed to appear before the apex court in connection with Sahara's failure to refund Rs20,000 crore to its investors.
On Tuesday, while rejecting Roy's plea seeking exemption from personal appearance before it, the apex court had directed him to appear on Wednesday in connection with the failure of his companies to refund Rs20,000 crore to investors.
Asking the Sahara group chief to appear before it on 4th March, the Supreme Court said, "Arms of this Court are very long."
The Supreme Court had on 20th February come down heavily on the Sahara group for not refunding Rs20,000 crore of investors’ money despite its order and summoned Roy, Ravi Shankar Dubey, Ashok Roy Choudhary and Vandana Bhargava, directors of its units, Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC) to be personally present before it on Wednesday.
It had allowed SEBI to go ahead with the sale of properties of the group whose sale deeds were handed over to the market regulator to recover Rs20,000 crore.
“Those properties you can sell. We allow you to sell them and recover the money. If they are encumbered properties then you can file criminal case against the company. The case must be brought to a logical conclusion,” the bench had said.
A close below 6,215 on the Nifty may reverse the rising trend
In Wednesday closing report, we had mentioned that a correction may set in, if Nifty closes below 6,200. Today, the benchmark opened in the positive zone and continued to stay there for the entire session. BJP's prime ministerial candidate for this year's Narendra Modi's reformist agenda and promised policy implementation in a speech on Thursday and remarks from Federal Reserve chair Janet Yellen before the Senate Banking Committee on Thursday reiterated her confidence in the US economy boosted market sentiment.
The Sensex opened at 20,995 while the Nifty opened at 6,228. Both the indices hit their respective intra day low almost at the opening level and started moving higher. At the close of the session, the benchmarks hit their days high at 21,141 and 6,283. The Sensex closed at 21,120 (up 133 points or 0.63%), while the Nifty closed at 6,277 (up 38 points or 0.61%). The NSE recorded a huge volume of 63.75 crore shares.
India's fiscal deficit in the first ten months of the FY 2013-14 crossed the target for the whole year. The fiscal deficit touched Rs5.33 trillion during April-January, or 101.6% of the full year target, compared with 89.4% at the same point a year ago, government data showed on Friday.
Arvind Kejriwal's Aam Aadmi Party intensified its attack on Reliance Industries (RIL) chairman and managing director Mukesh Ambani, accusing him of being involved in a Rs6,530-crore money-laundering operation. RIL on Thursday, 27 February 2014, said that allegations that foreign direct investments in certain Indian companies by Biometrix, a Singapore-based company, are "laundered monies" invested in India are completely false. RIL, part of Sensex 30 stocks, was among the top five loser. RIL fell 1.39% to close at Rs799.25. US indices closed in the green on Thursday.
Federal Reserve Chair Janet Yellen repeated that the central bank is likely to maintain its strategy of gradually trimming asset purchases. Yellen, in the second day of her semi-annual testimony on the economy and monetary policy, also repeated the Fed's pledge to keep the benchmark interest low at least as long as unemployment stays above 6.5% and the outlook for inflation doesn't exceed 2.5%.
The number of people applying for US unemployment benefits rose 14,000 last week to a seasonally adjusted 348,000. But the four-week average was unchanged at 338,250, the Labor Department said Thursday.
Orders for US durable goods fell 1% in January as demand tapered off for most big-ticket items except military hardware, the government said Thursday.
Except for Nikkei 225 (down 0.55%) all the other Asian indices closed in the positive. Jakarta Composite (up 1.12%) was the top gainer.
A meeting of China's lawmakers to set economic policy and growth targets begins next week in Beijing.
Japanese retail sales rose 4.4% in January from a year earlier, the government said Friday, a sign that consumers are increasing purchases ahead of a sales tax increase in April. Japanese consumer prices rose a bit more sharply than expected in January.
European indices were trading in the red while US Futures were trading marginally lower.
Spending patterns in rural area are much higher than urban India, finds Credit Suisse consumer survey
Spending patterns continue to show a big divergence between rural and urban India, with rural yet again seeing a much bigger improvement than urban India in almost all categories, observes Credit Suisse in a research note based on a consumer survey. More people in rural India saw their incomes increase last year and even more expect this trend to continue next year. Rural consumers are spending more, and penetration gaps between urban and rural India for discretionary items such as autos, branded goods and even monthly outgo on mobile connection have come down.
Despite the higher growth in spending in rural India, the fall in savings rate is more drastic in urban India, showing the effect of lower income increase and higher inflation on urban consumers, points out the research note. The comparison of urban and rural respondents is shown in the graphs below:
According to Credit Suisse, the declining trend of consumer optimism observed in the last two years shows some signs of improvement. More people believe this is a good time for making big-ticket purchases, and also expect inflation to decelerate.
According to the research note, faith in the government too has increased as more people believe it is effective in solving problems, possibly indicating better local governance by state governments. This is shown in the graph below:
Mean household income has also increased as shown in the graph below:
However, there are contrary indicators as well that make this minor recovery in optimism fragile; a larger proportion of the respondents expect personal finances to deteriorate and incomes to decline. Savings rate too has come down with increase in expenditure on items such as housing and education, partly contributed by high inflation. Many respondents believe that income will decline in the future as shown in the graph below:
On a positive note, Credit Suisse points out that there is also a reversal of the down-trading trend in discretionary items that was observed in last year's survey—a sign that declining growth in discretionary items may be bottoming out. However, Credit Suisse believes that it is still early to say whether the cycle has turned and things will pick up from here on.
Of the nine countries surveyed, ownership of cars, smartphones and electronic items is the lowest in India, according to the research note. Indians are among the lowest consumers of items such as spirits, meat and cigarettes. This, combined with the greater participation of rural India and lower-income categories, bodes well for India’s consumption story.
The top picks, notes Credit Suisse based on the survey, in the Indian consumption universe are ITC, Maruti, Page Industries, HDFC Bank, Kajaria and Emami. The following table gives Credit Suisse observations on the companies of interest: