Economy
The ‘Made in India’ Problem

While the PM has announced ‘Make in India’ with great fanfare, innovative companies like Uber and Amazon are getting a taste of laws made in India

 

This is not what prime minister (PM) Narendra Modi had in mind when he launched his high-profile ‘Make in India’ programme on 25th September. Yet, ironically, two multinational companies, Uber and Amazon, seem to have fallen prey to the large swathe of ‘made in India’ regulations that make it very difficult to do business in India.

 

Uber and Amazon are considered two of the most innovative companies in the world, so it would have been a big surprise if they had not fallen foul of India’s notoriously turgid bureaucracy.

Not only has the Reserve Bank of India (RBI) taken objections to Uber’s payment model and the Karnataka tax authorities with Amazon’s e-commerce model, but, typically, the Enforcement Directorate is also investigating Amazon.

 

The Department of Revenue Intelligence may also jump in to raise issues of violation of forex laws. That we, the people, find their services excellent, efficient and cost-effective, is of no interest to the rule-makers nor push them to find a quick solution. That is how the ‘Made in India’ legal and enforcement system works.

 

Uber is a global tax cab company. In order to hire a car, you need to download a phone application, supply credit card details and call a car. Once your ride is booked, the hi-tech system allows you to track the car to your pick-up point. At the end of the journey, your credit card is automatically debited and the invoice mailed to you.

 

Uber’s clean and easy transactions and aggressive pricing (almost on par with auto-rickshaws for an air-conditioned sedan ride) was growing fast enough to unnerve the competition. They complained to RBI which immediately said that the absence of a two-stage authentication on the credit card transaction and use of a foreign payment gateway violated Indian rules.

 

In Amazon’s case, the tax authorities in India decided that, since Amazon pre-orders certain popular products and stocks them in its warehouses, it is not an electronic marketplace but a reseller and falls foul of sales tax.

 

To expect Indian regulators to anticipate and permit an innovative business model is to be out of touch with reality. The two MNCs would have been better advised by their lawyers and consultants, based on the experience of a series of technology companies in the past five years—that they should be prepared for draconian coercive action, including raids and worse, which could shut down their business in India.

 

Commentators, who argue that India will send the wrong signal by attacking Uber and Amazon, are out of touch with everything that was happening in India in the past 10 years. Yes, we have a new government that promises change, but to expect the elephant to move with the speed of a gazelle is unreal.

 

In fact, although the PM launched a high wattage ‘Make in India’ campaign just before leaving for the United States, nothing has changed on the ground when it comes to cutting red-tape.

 

Medium to large companies are forced to spend significant sums of money on legal fees only to deal with the harassment by tax and enforcement agencies. Most of them have legitimate money blocked by endless tax-related litigation. Please notice that the retrospective legislation following the Vodafone case has been left untouched by Modi sarkar and the dispute is still not settled.

 

Doing business in India means that Uber and Amazon should be prepared for similar skirmishes with numerous municipal and state level regulators and law enforcers, whose rulebook often dates back to the 19th century. Indian businesses have learnt to live with these hassles or to ‘grease’ their way forward—all this adds to the cost and hassles of doing business in India.

 

Coming back to the Uber case, some commentators have argued that RBI cannot be a regulator, supervisor, investigator and enforcement agency, all rolled into one. But it has combined those roles for over 65 years and Indian banks and companies have lived, and died, by its capricious rules.

 

Let’s not forget how a sudden change in RBI’s rules in the mid-1990s caused most non-banking finance companies to go belly up leading to thousands of depositors losing hard-earned savings invested with them. Nobody held RBI accountable because that is how India has worked.

 

Uber gives dignity to millions of Indians who, in the absence of adequate public transport, have to beg and plead and give in to extortion by auto-rickshaws and taxi-drivers. Amazon delivers products to your doorstep cheaper and faster. All this cuts no ice with Indian lawmakers or regulators. They are not obliged to look for a solution that helps people; they’d rather stick to old rules—even as those rules are violated with impunity.

 

But there is a slight chance that things may be different this time. Public pressure for better services, conveyed directly to the PM via social media, could make a difference.

 

Mr Modi’s own experience of using technology innovatively to reach the people should make him sympathetic to innovators. I believe that only a direct request from the PM will push government agencies to re-work rules quickly so that people benefit from innovation.

 

It is RBI’s stated policy to push people to switch from cash and cheque to electronic transactions. Based on this, Uber’s payment process should have been held up as the model for others to follow. But there is a big gap between RBI’s stated goals and its actions.

 

According to media reports, Uber is working at integrating a digital-wallet into its payment process through a tie-up with a couple of mobile payment gateways. Will this work? Remember, in the eight years since it closed down the Times of Money’s e-wallet or stored value payment card, we have yet to see an effective e-wallet with low transaction costs attract sizeable customers in India.

 

RBI has also been impervious to consumer protests about ‘convenience charges’ levied on electronic transactions. A workable e-wallet system, with low transaction charges, is the ideal solution for small-value online transactions to buy movie tickets, books, flowers or pay taxi fares, where the value at risk is low and there is no need for two-stage authentication. But, there again, RBI is worried that these low-denomination transactions will be used for gambling, lottery tickets and worse, to launder money.

 

But e-commerce in India is a $2.3billion business, which is growing at a scorching pace and companies will keep innovating for a piece of the action. While existing e-wallets offered by some banks are tedious, worth the effort only for high denomination transactions, new ones are being announced every day.

 

The Indian Railway Catering and Tourism Corporation (IRCTC) has launched an e-wallet which is structured as a rolling-deposit scheme where customers can maintain an account with IRCTC for e-bookings, which is topped up from time to time. This is to reduce the current hassles and risk involved in using credit and debit cards on the IRCTC system. The Citrus Pay app is another one that allows users to load value on an e-wallet from a credit or debit card.

 

It remains to be seen if Uber will find its way around RBI regulations or we will see the dawn of a new era, where the ‘Make in India’ is not just a slogan but a signal to regulators, policy-makers and investigation agencies to also move with the times to help and facilitate businesses that consumers want.

 

(Sucheta Dalal is the managing editor of Moneylife. She was awarded the Padma Shri in 2006 for her outstanding contribution to journalism. She can be reached at [email protected]

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COMMENTS

Amit Bhargava

3 years ago

Ms. Dalal,

I do not mince words. I do not use pseudo names to criticise. I call spade a spade. If you find it offensive, then my apologies but the fact remains. This story is just badly researched, and that remains a fact. Humans do make errors...

Your story states...
"Uber’s clean and easy transaction and aggressive pricing (ALMOST ON PAR WITH AUTO-RICKSHAWS for an air-conditioned sedan ride)"

IN ANY CASE, A LAW OFFENDER CAN OFFER SERVICES CHEAP. BUT EVEN THAT IS NOT THE CASE HERE...

Here is the fare comparison for Mumbai:

Uber X (mini):
Min Rs. 50 + Rs. 15/km + Rs. 1 for every minute travelled. In other words, pay a minimum for Zero distance included, then pay for the distance, and also for the entire travel time. Rs. 15 per km would turn out to be something like Rs. 20~21 per km for a 25 km ride with moderate traffic.

Local Taxi:
Min Rs. 19 for 1.6 km, thereafter 13 per km.
Ref: http://mahatranscom.in/pdf/B%20&%20Y%20M...

Auto Rickshaws:
Min. Rs. 15 for 1.6 km, thereafter 10 per km
Ref: http://mahatranscom.in/pdf/Tarrifcardfor...

Here is the payment comparison:

Uber:
Credit / Debit card on file. Charge debited to a company outside of India without 2 tier authorisation. No provision to remove stored credit / debit card details. Uber does not disclose its phone number, email address, or even a postal address in India. What it discloses is a twitter handle. So if there is an unauthorised charge, one cannot even send out a legal notice to a company in India.

Local Taxi / Auto Rickshaw:
Cash. The driver may want to charge extra, but cannot clean up your bank account.

Here is the Permit comparison:

Uber (the cash rich daddy): No Permit to operate point to point services. Violation of various sections of the CMV Act, and tax laws for which they are being investigated.

Taxi Permit (For Taxi owner):
Source: http://mahatranscom.in/pdf/Taxi_Permit_E...

Eligibility Criteria

Applicant should be a citizen of India.

Age limit : - On the date of application, the age of the applicant should be 20 years and above.

Educational Qualification: - Applicant must be 10th standard pass, however if enough number of applications of 10th pass candidates are not received, then the applicants, who are 8th standard pass, would be considered.

General Terms and Conditions are as follows

Applicant should be resident of Mumbai Metropolitan Regional Transport Authority (MMRTA) area and should hold driving license having present residential address in MMRTA area Permit will be granted by the office in whose jurisdiction the applicant resides. Area of operation of the permit will be total MMRTA area. e.g. Applicant residing in Panvel city will have Driving License & badge having address from Panvel city & issued by RTO, Panvel. Taxi Permit will be issued by RTO, Panvel valid for whole of the MMRTA area.

MMRTA area means MMR area as defined in schedule 1 of „The Mumbai Metropolitan Region Development Authority Act, 1974‟.

Applicant should hold valid LMV (Tr) or Transport Vehicle (HGV/HPV) driving license and public service vehicle authorization (badge) for taxi or auto rickshaw issued by RTO/ Dy RTO office in MMRTA area as on the date of submission of application.

Applicant shall have knowledge of local language (Marathi) and local topography.

Applicant should have stayed in Maharashtra for at least 15 years continuously.

Successful applicant shall have to produce certificate from Police Department (Police Station in whose jurisdiction he/she is staying) stating that no cognizable offence is registered against him/her during the last one year.

Successful applicant shall have to produce self-declaration stating that he/she is not in the service of Government/Semi Government/Private Company or any other organisation/firm (organized sector).

Successful applicant shall produce self-declaration stating that he/she is not holding another auto rickshaw/taxi permit in his/her name.

There is no reservation for any type of class or person.

III. About the taxi to be endorsed on the permit

1. Taxi to be endorsed on permit shall be operated on CNG in Mumbai & in areas outside Mumbai where CNG pumps are available & on LPG/ Petrol in rest of area.

2. Fitment of digital electronic fare meter at prominent place so as to be clearly visible to all passengers with printer of approved type is mandatory.

3. The vehicle to be endorsed on the permit shall be a new taxi.

4. In future if Government/ Transport Commissioner/Concerned Authority decides to make it mandatory the fitment of GPS/GPRS, RFID Tag, Tachometer, Roof Top Indicator etc. in taxi, the permit holder shall have to install it on his/her own.

5. If an applicant submits more than one application, all his/her applications shall be treated as cancelled and the applicant will not be eligible for further selection process or the lottery draw.

Display of RTO complaint (Toll Free) Numbers, Police and Women‟s helpline numbers at prominent place so as to be clearly visible to all passengers is mandatory.

Display of colour copy of Permit along with driver‟s license at prominent place so as to be clearly visible to all passengers is mandatory.

REPLY

Ankur Bhatnagar

In Reply to Amit Bhargava 3 years ago

Amit,

I think you probably missed the broader point about the article. I see this article more about a certain opinion than as a platform to promote Uber. Great service from Uber is an illustration of the author's broader point that the Indian sarkari system is more an obstruction than an aid for people.

The sarkari babus refuse to change with time and come in the way of new evolving technology and new business methods. They block new ideas quoting the outmoded acts, laws and rules. I don't know why you pasted the rules of taxi permits, but if anything, it only shows that they make doing business difficult. That in fact supports point of the article.

You say "IN ANY CASE, A LAW OFFENDER CAN OFFER SERVICES CHEAP." The counterpoint could be that those 'laws' were not made with Uber like service in mind. The laws might not even apply to Uber. More importantly, your statement can imply that the law is coming in the way of offering cheaper and better services. It is as if the people are made to obey the laws and not the laws are made to aid people.

Apart from Uber, Sucheta has cited other examples too including Amazon, Vodafone and RBI. I can also think of Flipkart, import restrictions on white goods, cable TV, e-rickshaws in Delhi, and so on. In these examples it appears as if the government acts against the consumer interests rather than protect them.

Amit Bhargava

In Reply to Ankur Bhatnagar 3 years ago

Ankur,

I did not miss anything. Maybe you did. Do not selectively quote me.

I stated...

"In any case, a law offender can offer services cheap. BUT EVEN THAT IS NOT THE CASE HERE..."

Sucheta wrote, "Uber’s clean and easy transaction and aggressive pricing (ALMOST ON PAR WITH AUTO-RICKSHAWS for an air-conditioned sedan ride)"

Go ahead and read on all that is stated by me. Google a bit and you will find how brazen Uber is in its alleged anti-competition / anti-consumer approach.

RBI's action is purely in consumer interest. It cannot allow a company such as Uber to operate in India but debit charges to a company outside of India without 2 tier authorisation, would not allow consumers to remove their stored credit / debit card details, won't its phone number, email address, or even a postal address in India, but what it would discloses is a twitter handle. So if there is an unauthorised charge, one cannot even send out a legal notice to a company in India.

BTW, Uber and some other cab aggregators are also allegedly in contempt of the orders of the Supreme Court of India... But I would leave that for Money Life to investigate for itself.

The law of the land applies to all. Uber is no exception.

BTW Ankur, are you suggesting that a poor cab operator must comply with all the prevailing laws but cash rich corporates with a battery of lawyers to defend them, be allowed to break all laws?

Ankur Bhatnagar

In Reply to Amit Bhargava 3 years ago

Amit, you misunderstand me.

I am not going into whether Sucheta is correct in saying that Uber's services were cheaper. I would just take her word for it -- may be she indeed paid less for a ride. How would anyone know otherwise?

I am pointing to the general drift and aim of the article, which is, that the laws/rules in India are archaic and come in the way of business. Uber is only an example. If Uber's services are too costly or of poor quality, let the market not accept them.

You say that the law of the land applies to all. But what if Uber is not a taxi service? What if tomorrow a mobile app enables car poolers to join hands, where instead of sharing their cars, they pay each other? Will taxi rules be applicable there or will the rules ban car pools?

I am not suggesting "that a poor cab operator must comply with all the prevailing laws but cash rich corporates with a battery of lawyers to defend them, be allowed to break all laws". The article's point is that these "laws" (actually rules. remember that these rules are made by and implemented by neta-babu who, more often than not, are corrupt) are often onerous. They come in the way of businesses, whether small businesses or large businesses.

It is well known that India ranks at the bottom of ease of doing business rankings. I can't see why would anyone disagree with this article. This point is as evident as it can be.

If Uber can operate successfully in several countries delivering customer delight, why can't it operate here too? If credit card transactions can be done safely without double authentication (or whatever way they are done) in dozens of countries, why not in India too? I am not conversant with the complex rules of taxi business. But the higher level point still stands -- if businesses can run so well in over 100 countries then why not in India too? So what if Uber debits the money to a foreign country? The credit card user always have the option of blocking a transaction (charge back) if he feels that he was wrongly charged.

There is always reasoning like "these rules are meant for protecting the customer", or this or that. But do they even succeed in that objective? The businesses in India are subjected to hundreds of checks and balances. But are they still delivering the best products to customers with all honesty? While in theory, these rules sound great but in practice these rules achieve nothing except deterring honest businesses and supporting the corrupt businesses.

Sucheta Dalal

In Reply to Amit Bhargava 3 years ago

sorry. I close this discussion because you clearly have an agenda.
I have done a lot of work on fleet cabs and what rules are followed and flouted.

also, the reference to auto fares was in a context and were clearly aggressive introductory fees.

We also believe in calling a spade a spade, but you can't call it a bloody shovel and be as aggressive.
Anyway . I dont intend to respond to this anymore, because I have NO INTEREST IN UBER OTHER THAN BEING A SATISFIED CONSUMER. I am needlessly being put in the position of defending a global corporate that can take care of itself.

But your allegations about the company and claims about it being a law offender will be referred to our webmaster. We cannot take responsibility for our intemperate comments.

Amit Bhargava

In Reply to Sucheta Dalal 3 years ago

Wow!

Maybe you did not see this development.

http://articles.economictimes.indiatimes...

Amit Bhargava

3 years ago

I cannot believe that Money Life is defending a company such as Uber.

Uber is in violation of CMV Act as well as tax laws. Some other cab aggregators probably also fall in the same bracket.

What is shocking and even hard to understand is that Uber would not disclose its contact details? No phone number, no email, no address? Just a twitter handle?

The credit card is charged by a company in Netherlands. It bypasses RBI mandated 2 tier authorisation. Worse, Uber would also not allow to delete credit card information.

And FYI, Uber fares are not cheap. Comparing them with Auto fares shows how badly is this story researched. A base fare + per KM charge + charge for the entire time taken for the ride.

Like it or not but that is the fact.

Amit Bhargava

3 years ago

I cannot believe that Money Life is defending a company such as Uber.

Uber is in violation of CMV Act as well as tax laws. Some other cab aggregators probably also fall in the same bracket.

What is shocking and even hard to understand is that Uber would not disclose its contact details? No phone number, no email, no address. Just a twitter handle?

The credit card is charged by a company in Netherlands. It bypasses RBI mandated 2 tier authorisation. Worse, Uber would also not allow to delete credit card information.

And FYI, Uber fares are not cheap. Comparing them with Auto fares shows how badly is this story researched. Like it or not but that is the fact.

And FYI, Uber fares are not cheap. Comparing them with Auto fares shows how badly is this story researched. A base fare + per KM + chare for the entire time taken for the ride.

Like it or not but that is the fact.

REPLY

Sucheta Dalal

In Reply to Amit Bhargava 3 years ago

Amit Bhargav

You may have your views, but I find your allegations offensive.

Like we do with the claims you make about brokers cheating you and SEBI not responding, we check this too.

We have used UBER personally. Found it extraordinarily good and in Mumbai, the fares are ACTUALLY below that of black and yellow, non-ac cars.
When you compare with the rip-off at the airport in pre-booked fleet cabs and other cabs, the difference is extraordinary.
it is a pity that more people dont know about it.
As for the rest…. read again, we have said some kind of solution must be found to ensure that we the people are not deprived of a good service.
In mumbai some of the fleet cabs are owned by those with underworld links -- you have have a personal issue with UBER, but please do not use that to make unfounded allegations here.

Ankur Bhatnagar

3 years ago

A brilliant hard hitting article! Please keep it up. I hope many of the 'brilliant' sarkari babus have read it and it made an impact on them.

These are some of my favourite quotes from the article:

"To expect Indian regulators to anticipate and permit an innovative business model is to be out of touch with reality."

"Yes, we have a new government that promises change, but to expect the elephant to move with the speed of a gazelle is unreal."

"...whose rulebook often dates back to the 19th century"

"...cheaper and faster. All this cuts no ice with Indian lawmakers or regulators. They are not obliged to look for a solution that helps people; they’d rather stick to old rules—even as those rules are violated with impunity."

"...ideal solution for small-value online transactions to buy movie tickets, books, flowers or pay taxi fares, where the value at risk is low and there is no need for two-stage authentication. But, there again, RBI is worried that these low-denomination transactions will be used for gambling, lottery tickets and worse, to launder money."


Kinshuk Chandra

3 years ago

Nice article on the broader point - height of bureaucracy in India, but it cannot be solved by a single man - our PM, but by all of us, slowly and steadily, of course lead role has to be played by PM.

Prakash Basrur

3 years ago

I never thought your learned commentators , of all the Indian critics , would expect Modi govt. to act as fast as dictatorial China or "Free for All" US market economy would in cases like Uber and Amazon ! You , I presume , have the same genes as our typical Babu of the huge "Babudom" has ? So , the "elephant" moves as per the 66 years' training in slow motion and it would be fallacious for a new "Mahut" to rock the boat by upsetting the "Babudom" by a sudden cahnge of the giant elephant's speed as well as course of travel and that too in 100 days ! If a "free-for-all" American loses his patience then I wouldn't be surprised but not you who was born under the "Chalta-Hai" free India that is called Bharat ! Give Modi and his government a fair chance and at least 2 years for changing the "elephant"'s speed and the direction ! And , by the way , weren't Amazon and Uber made aware of the situation in India by their learned Indian investigating agencies ? Or is it that they were and so they are not making noises whereas you are ?

MURALI MOHAN

3 years ago

Most foreign merchants when transacted outside India do use multi stage authentication for CC issued by Indian banks (not sure how RBI has managed to link the foreign transactions using Indian CC).
I am sure Uber and Amazon would be come up alternate mechanism acceptable to RBI and GOI in general.

MR

3 years ago

While your broader point is valid, the examples undermine it - you come across as ranting against the government for the sake of it.
India is one of the markets with low credit card fraud precisely because of the checks that RBI has introduced. All Indian companies have to follow those rules. If a non-Indian company could easily circumvent the problem by taking credit card data and processing it outside India, what prevents Indian companies too from opening foreign subsidiaries and routing payments through them!? This would basically make a joke of the RBI rules - which, may I point out Mrs. Dalal, are for the consumer's benefits on whose side you usually fight.
The Amazon fiasco is a different story. If the current laws do not allow them to act as reseller then it is indeed a technicality as to whether they are flouting the laws or not. If not, the state will lose - good riddance for Amazon who can prosper perhaps in Gujarat! If yes, then it is sticky.
Hopefully these innovative companies will find ways to comply with the regulations AND also win in the market.
But for you to use them to make your point is only diluting your point and I wouldn't blame RBI for not taking it seriously in this context.

REPLY

Ankur Bhatnagar

In Reply to MR 3 years ago

I would think that if India has low credit card frauds, that is more because we have lower number of people with cards. In turn, that may be due to the rigid rules laid out by RBI. What use is a rule that tries to make a service 'safer' by not letting the service itself get used?

Let me point you to the following lines from the article:

"...small-value online transactions to buy movie tickets, books, flowers or pay taxi fares, where the value at risk is low and there is no need for two-stage authentication. But, there again, RBI is worried that these low-denomination transactions will be used for gambling, lottery tickets and worse, to launder money."

Because RBI is fearful of laundering, it is not letting an otherwise legitimate service run. This is a warped logic! If we were to go by this logic, RBI should ban cash itself because one could buy illegal things with cash too.

This mindset is problematic because it favours status quo. It says that don't change anything because it might cause a (mostly small) problem somewhere. This mindset prevents India from growing in this modern age.

Sucheta Dalal

In Reply to MR 3 years ago

You clearly do not want to read the last paragraphs which talk about a solution.

Also the main focus is Uber which is damn good for us Indians. We pay less for great service. If one has to rant to get the RBI to see sense and have workable e-wallets them let MORE OF US RANT. It is good for US the consumers!!
Also, you can keep POINTING issues out to me or join us in the HARD WORK that it takes to fight for consumer rights -- we do it through moneylife foundation. I would like to see you volunteering to take the right forward and become a ranter rather than an advisor :-)) Will you do that.
Check out http://foundation.moneylife.in

Prakash Basrur

In Reply to Sucheta Dalal 3 years ago

Sucheta ben , kem cho ?

I appreciate your 100% capitalist and "free market" attitude ! I am sure Narendra bhai has similar views which he has expressed by his one decade's work in Gujarat and by his pre and post election statements ? Let us give him , at least 2 years , to rock the boat which is stuck during last 10 years of SMS ( Sardar Manmohan Singh ) rule !

milind nijsure

3 years ago

It takes some time to change our attitudes. Unless we create business friendly environment in our country nothing will change. The main task before Shri. Modi is, all the implementation is to be done in our States,and where Shri. Modi has limited say. MILIND NIJSURE

webkitendfullscreen

3 years ago

You are right - e-wallets have a long way to go and only forced intervention by regulator might result in some off take by consumers. I often hear that Indians love the prepaid model - look at the fact that more than 97 percent of mobile users are prepaid users. But these people forget that while telecom is delivering people a very basic human necessity - of communicating, a prepaid payment card does not - not at this point in time. I can always pay by cash - and it's likely that Uber will also be forced to accept cash here in India due to RBI's insistence that electronic payments need to be hundred times more secure than cash payments.

One of the commentaries I read when this Uber related notification came was about how technology implemented by Uber saves millions of minutes of both the rider community and driver community by saving them from the hassles of searching for change or getting payments effected. That sort of technology intervention raises productivity of people manifold.

People also say what's the harm in RBI asking customers to enter a one time password or PIÑ for authenticating that the rightful owner of the card is using the card. For low value of the transaction, making hundreds of thousands of customers expose their PIN numbers for a card not present transaction would probably cause more problems down the line.

Suiketu Shah

3 years ago

Expect major changes in India's economic policy and "Made in India" once BJP comes into power 19 Oct.They have to win the financial capital first.And its only 4 months since Modi came into power.He has done loads of thigns which Congress were unable to do for 10 yrs.

REPLY

LALIT SHAH

In Reply to Suiketu Shah 3 years ago

Suiketu shah
Is modi fenzy or BJP STOUT HAVEING LOT'S OF PREJUDICE TO CONGRESS BUT BJP AND CONGRESS IS TWO SIDE OF ONE COIN ONLY
MAKE IN INDIA WILL PROVE SALE INDIA OUR PM DURING HIS VISIT TO US LOUDLY proclaiming THAT WE HAVE 65% OF OUR POPULATION IS YOUNG SO U WHITE PEOPLE'S COME DO BUSINESS WE WILL PROVIDE U SLAVES THUS LOTS OF EAST INDIA COMPANY WILL COME WE WILL FURTHER BECOME SLAVES ATLEAST FINANCIALLY

Ramesh B Mhadlekar

3 years ago

Nobody held RBI accountable because that is how India has worked it is true and it will continue in a similar manner.There is no accountable policy and RBI Management only pretends or speaks about accountability in theory if they believed in accountability the Ex-Regional Director who had claimed bogus overtime during absence from headquarters would not be appointed as a Administrator of Coop bank at Nasik.They would have taken action on information provided by me after collecting the same from Police department under the RTI Act 2005 on the outrage of modesty of Police lady constable in Mumbai office premises and they pretend that they do not know that their employees were convicted by criminal court as revealed by RTI. RBI is good at pretending when it come to be accountable for their lapses or failure as a regulatory authority.

SuchindranathAiyerS

3 years ago

If it was only just the laws. The entire neta-babu-cop-milard-crony kleptocracy is designed to squeeze any and every business dry and siphon the money off to safe havens abroad. Unless Narendra Bhai re-makes India, nothing else can be made in India (!)

B Rajaram

3 years ago

As far as Amazon is concerned in USA , earlier years they were not paying sales tax here too. But over last year States here took similar stand and imposed state tax now. Amazon now collects tax for on lime orders for some sales depending on from which state they ship etc.

MG Warrier

3 years ago

Amazon CEO Jeff Preston Bezos gave an interview to Hindu Business Line which was published on September 29. My response to the published version of the interview is copied below for information and taking the debate further:
“The positive approach to doing business which helps Bezos keep smiling all through is admirable and worth imbibing by any entrepreneur anywhere in the world.
The $2 billion cheque brought in by Amazon is a good omen when Prime Minister Modi is inviting the world not only to do business in India but to ‘Make in India’ and do business with the rest of the world. The World Bank Group(2013) which rated India at 179 under the parameter ‘Starting Business’ in a group of 189 countries, should revisit its assessment and see how many of the countries which were positioned above India got an individual single external investment of $2 billion or above in 2014.
The assertion made by Bezos that ‘Every country in which we do business, there are regulations. Our job is to accommodate those regulations. So, let us use it as an opportunity, instead of just complaining about it.’ should be an eye-opener for all those who grumble about business environment in India.
This is not to say that business environment in India is perfect and needs no improvement. But the progress made in improving the ‘ease to do business’ by various states and the present efforts by the central government to make things better need to be taken note of, and position taken by Amazon and its CEO Bezos makes sense in this context and stands alone in the whole mess up in comparisons by international rating agencies.”
M G Warrier, Mumbai

REPLY

Ravindra

In Reply to MG Warrier 3 years ago

I appreciate the attitude of Bezos. Also there are a number of very successful online selling Companies, in the past five years. Can Amazon not study how they are doing the similar business like Amazon without a SERIOUS objection from the IT Dept? In any case as Bezos says each Country has its own Laws which are abiding on the Companies doing business there. They shoould also submit their suggestions about the changes in the Laws to the Government. I do not think it has been done so far. The CII, FII and other Indian Business associations follow the same practice. Unfortunately so far the Bureaucracy did not pay much attention to it. But under the new Government the Government itself is inviting suggestions from the Business associations and the Business heads how to improve the environment for doing business.

MG Warrier

In Reply to Ravindra 3 years ago

Very true. That is where Moneylife stands apart in the media world. Moneylife allows debate. Mainstream media with the exception of a couple of ‘independent’ newspapers which have limited circulation, ‘black out’ inconvenient exposures. Back to the point you have raised, organizations like RBI have now a practice of coming out with ‘discussion papers’, before making major policy/regulatory changes. These do not get coverage, except on their own websites. Media takes interest only to pick up ‘controversial’ proposals to sensationalise issues. There should be healthy debates on development issues and regulatory changes. Prime Minister Modi has raised several issues concerning the common man during the last 4 months. There should be more debates at all levels on these issues. People should take advantage of the 'change in approach', which aims at consensus and breaking away from the past 'mistakes' visible in PM's loud thinking. But the mainstream media takes more interest in what Modi wears or whether he makes a mistake in spelling a name.

Insurance problems: How to get justice from Ombudsman in a cost-effective way
If you have a dispute with your insurer, you can approach the Insurance Ombudsman without any help from a lawyer. Speaking at a Moneylife Foundation interactive seminar, AK Dasgupta, Insurance Ombudsman from Mumbai said, policyholder can get justice if she can follow due procedure and prove her case without hassle
 
Insurance grievances are on a rise. Both life and non-life have almost equal share of  complaints. The main difference is that life insurance complaints has mis-selling by intermediary, while non-life insurance has grievances against third party administrator (TPA) or surveyor. Wrongful denial or partial settlement of claims is a major grouse of policyholders. The other reasons for complaint are: Any dispute in regard to premium paid or payable in terms of the policy, Any dispute on the legal construction of the policies in so far as such disputes relate to claims, Delay in settlement of claims and Non-issue of any insurance document to customers after receipt of premium.
 
Speaking at an interactive seminar organised by Moneylife Foundation at Mumbai, AK Dasgupta, Insurance Ombudsman for the region, said, “Almost 90%-95% of grievances we receive are related to claim settlements. Insurer's policy document is in such small letters that even the company representative could not read this. There is a lot of scope for improvement in handling grievances and we want customers to give us suggestions.”
 
Mr Dasgupta took charge of the Mumbai Ombudsman office in mid-May 2013. Over the period of last one year, Mumbai Ombudsman has solved more than 1,400 complaints, which is three to four times of the average complaints handled in an ombudsman office. Mumbai Ombudsman invited life and non-life insurance companies to take up non-complex cases for reconsideration. More than half of the cases were solved without any need of policyholder hearing. The decision was given in the favour of the customer. Thus, all the old cases (few of 2009-10) were closed and the ombudsman office started dealing with 2012-13 cases. The ombudsman office has started giving priority to senior citizen cases and those with critical illness. There was a need felt to help these consumer groups faster, so that any unfair claims rejection or partial settlement is given justice.
 
More and more people are now using Ombudsman route to resolve their insurance related issues. “I, till date, have not come across any case where the policyholder was not willing to accept the decision given by the Ombudsman,” Mr Dasgupta said adding, “the order for award has a timeline for insurer to pay. If the insurer has not paid award within stipulated time given in Ombudsman’s order, then interest is levied.”
 
He said while approaching Ombudsman for insurance grievances, policyholder needs to submit reasonable proof of claim submission. Even acknowledgment from courier can be considered as proof of submission for claim. But you need to first approach the insurer and if there is no response or the insurer has not responded in reasonable time, then you can reach Ombudsman’s officer, Mr Dasgupta said.
 
Regulations require the complaint to be resolved within 90 days of receipt, but it is unlikely any ombudsman office is able to adhere to the time line. The delay is due to overload of pending cases when the ombudsman takes charge of office. There are delays in appointment of ombudsman, which means there are several months, wherein there is no ombudsman, and hence, cases can pile on. Complaints  can be settled, through mediation or agreement. When the complaint is not settled by mutual agreement the Ombudsman shall pass an award. The award to cover the losses suffered by the complainant shall not exceed  Rs20 lakh. The awards are binding upon insurance companies. If the policyholder is not satisfied with the ombudsman’s award he can approach other forums such as consumer forums and courts for redressal. 
 
Insurance ombudsman can only address grievance on policies on personal lines (both life and general insurance) or if deceased, the Nominee/legal their(s) of the deceased can make a complaint to the Insurance Ombudsman. It means businesses cannot approach ombudsman for grievance handling. Complaints are not entertained if : Complaint made one year after the insurer has rejected the claim, Complaint is on the same subject for which proceedings were made or pending before any court/consumer forum/arbitrator. Claim amount / Compensation more than Rs20 lakh.
 
If you have already made written representation to the Grievance Redressal Cell of the insurer and have no response or unsatisfactory response, you can approach Insurance Ombudsman under whose territorial jurisdiction the complainant resides. There are 16 Ombudsman offices: Ahmedabad, Bhopal, Chandigarh, Delhi, Hyderabad, Kochi, Lucknow, Noida, Pune, Bengaluru, Bhubaneshwar, Chennai, Guwahati, Jaipur, Kolkata, Mumbai and Patna. Metros like Mumbai and Delhi get high volume of complaints. There is no need for legal representation to fight your case as ombudsman services are meant to be low cost option to get justice. 

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COMMENTS

vikas Raghunath Patil

2 years ago

सावधान, आर्थिक धोका व शास्त्रोक्त फसवणूक

BAJAJ ALLIANZA आणि COSMOS BANK चिंचवड शाखा कडून ग्राहकांची आर्थिक लुबाडणूक । फसवणुक झाली आहे .

सर्व सामान्य नोकरदार मंडळी ज्यांचे बँक खाते cosmos बॅंक मध्ये असेल त्यांनी जर चुकून बजाज अलींझा ची ५ वर्षाची policy काढली असेल तर आपल्या हाती भोपळा व मनस्ताप नक्की आहे म्हणून आपण अश्या अमिशाना बळी पडू नका .
माझ्या सोबत BAJAJ ALLIANZA आणि COSMOS BANK चिंचवड ने धोका केला आहे .
सविस्तर :
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BAJAJ ALLIANZA चे नोडल अधिकारी म्हणतात त्या स्कीम मध्ये कंपनीला { बजाज }फायदा झाला नाही व एजंट कमिशन २५% वाटल्याने ते पैसे ग्राहकाच्या पैश्यातून वजा करून घेतले आहेत.
मी भरले २५०००. ०० त्यातून मला मिळाले २३४२३. ०० म्हणजे मला पाच वर्षाने माझे मुद्धल तर नाहीच व्याज पण नाही उलट १५७७. ०० / Rs. मला घाटा आला आहे (एक हजार सत्त्यातर रुपये घाटा ) फायदा तर (भोपळा) ००० नाहीच .
COSMOS BANK मध्ये जर आपण कोणी अश्या प्रकारची स्कीम घेतली असेल तर त्वरित ती बंद करावी कारण हि स्कीम फसवी आहे
COSMOS BANK सारख्या नामांकित बँकेने असली स्कीम आपल्या ग्राहकांच्या माथी मारली हि अतिशय लाजिरवाणी व धोका देणारी मानसिकता आहे या बाबत COSMOS BANK पदाधिकार्यांनी जाहीर माफी मागावि.
BAJAJ ALLIANZA या कंपनीवर आर्थिक फसवणूक केल्या बाबत पोलिस केस करणे गरजेचे आहे. COSMOS BANK ने २२०० ग्राहकांना ह्या संकटात टाकून जनतेची फसवणूक केली आहे
ह्या बाबत सर्व कागद पत्र सोबत जोडली आहेत

BAJAJ ALLIANZA policy NO : 0121779517
member id : CB 5F500203
नागरिकांना विनती कि आम्ही फसलो आहोत आता आपण फसू नका व अशी फसवणूक करणार्या कंपन्याना बाद करण्यासाठी शासनावर दडपण आणणे गरजेचे आहे.
cosmos bank booked this type of 2200 number of customers at chichwad branch.
मी पोलिस केस करणार आहे आपण मला मदत करावी जर आपल्या सोबत असा प्रकार झाला असेल तर मला संपर्क करावा . ७७९८८११५१२ .
विकास पाटील

Email. [email protected]
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Jayalalithaa sentenced to four years imprisonment in disproportionate assets case
Jayalalithaa, the AIADMK supremo now stands disqualified immediately from the Assembly and will have to step down as chief minister 
 

Tamil Nadu Chief Minister J Jayalalithaa on Saturday was sentenced to four year imprisonment and fined Rs100 crore in the 18-year-old disproportionate assets case. The verdict by a special court in Bangalore raises questions over her continuance on the post and the big question is who will head the government in the absence of Jayalalithaa. She ceases to be MLA and CM. She will go to jail tonight.

 

The conviction of the AIADMK supremo has come as a rude shock to the ruling party, casting a doubt over the 66 year-old leader’s political future ahead of the 2016 assembly polls.

 

Earlier in the day, Special Judge John Michael D'Cunha convicted Jayalalithaa in a case of owning assets to the tune Rs66.65 crore disproportionate to her known sources of income during 1991-96 when she became Tamil Nadu's chief minister for the first time. 
 
Jayalalithaa's close aide Sasikala Natarajan, her niece Ilavarasi and her nephew and the chief minister's disowned foster son Sudhakaran were also convicted. 
 
The verdict was delivered at a makeshift court in the Parappana Agrahara prison complex in the presence of Jayalalithaa and the other accused.
 
Soon after the court verdict, there were some cases of violent protests across Tamil Nadu and some parts of Karnataka. Several owners have closed their shops in Chennai with some of the private offices ‎asking their employees to leave early. Supporters of AIADMK pelted stones at the residences of BJP leader Subramanian Swamy and DMK chief M Karunanidhi following the verdict.
 
Jayalalithaa has earned the dubious distinction of becoming the first sitting Chief Minister in the country to be found guilty under the provisions of the Prevention of Corruption Act and faces the prospects of being disqualified as MLA and losing power.

While a pall of gloom descended at the AIADMK headquarters at Royapettah, with some angry workers burning effigies of DMK leaders, the archrivals celebrated Jayalalitha’s conviction with scores of DMK workers thronging the headquarters Arivalayam as well as Karunanidhi’s residence.

The special court’s verdict pronouncing their leader ’Amma’ (Mother, as she is addressed by supporters) guilty crushed the die-hard AIADMK supporters’ hope of her emerging unscathed in this case that was hanging over her head like the Damocles sword.

The case was transferred to Bangalore's Special Court in 2003 by the Supreme Court on a petition filed by DMK leader K Anbazhagan who had expressed doubts over conduct of fair trial with Jayalalithaa as Chief Minister. 
 
Appearing before the court four times, Jayalalithaa has answered 1,339 questions in closed door hearings during, which she has maintained that the case was "politically motivated" and "fabricated" at the instance of her rival DMK. 
 
The case was filed by Subramanian Swamy in 1996. She was arrested and jailed for some days after DMK came to power in the 1996 Tamil Nadu Assembly polls. 
 

She had to step down as Chief Minister in 2001 when Supreme Court observed that she cannot hold office, as she was earlier sentenced in two corruption cases in 2000, which, however, was set aside later.

Today’s verdict has come as a jolt to the ruling AIADMK as it had been enjoying a winning spree in all elections held since April 2011, when the party trounced DMK.

The party had put up a stellar performance in the Lok Sabha polls this year, winning 37 of the 39 states in the state, though its hopes of a pivot role in the Centre failed with the BJP mustering majority on its own.

However, there is no threat to the party government as AIADMK has a solid majority of 150 seats in the 234-member Assembly.

She had been acquitted in several other cases filed during the DMK regime.

After the apex court’s observation in 2001 that she cannot continue in office, Jayalalithaa had made her loyal aide and then not-so-known face O Panneerselvam as her successor to power.

After getting absolved of the charges in the Madras High Court, she had contested from Andipatti constituency and became the Chief Minister again in 2002.

Panneerselvam is also one of the names presently doing the rounds in AIADMK circles as one of the probables to take over as the next Chief Minister if Jayalalithaa has to resign.

The others being Transport Minister V Senthil Balaji and Electricity Minister Natham R Viswanathan and even former Chief Secretary and Consultant to the state government, Sheela Balakrishnan.

User

COMMENTS

jaideep shirali

3 years ago

Amazing that we still have persons who support the corrupt, when to most citizens, corruption is this country's worst enemy. Jaya and other corrupt persons deserve the harshest punishment, not sympathy. The few crumbs thrown at the poor from government coffers came from the citizen's own pockets, not Jaya's. The 100 car official motorcades were also an insult to this country's poor. And just as the citizen cannot claim to be a "victim of political conspiracy", neither can the politician who is caught and sentenced. Whether we sentence any other politician is irrelevant, each corrupt politician should be treated as an enemy of this great nation and dealt with accordingly.

jaideep shirali

3 years ago

Amazing that we still have persons who support the corrupt, when to most citizens, corruption is this country's worst enemy. Jaya and other corrupt persons deserve the harshest punishment, not sympathy. The few crumbs thrown at the poor from government coffers came from the citizen's own pockets, not Jaya's. The 100 car official motorcades were also an insult to this country's poor. And just as the citizen cannot claim to be a "victim of political conspiracy", neither can the politician who is caught and sentenced. Whether we sentence any other politician is irrelevant, each corrupt politician should be treated as an enemy of this great nation and dealt with accordingly.

jaideep shirali

3 years ago

Amazing that we still have persons who support the corrupt, when to most citizens, corruption is this country's worst enemy. Jaya and other corrupt persons deserve the harshest punishment, not sympathy. The few crumbs thrown at the poor from government coffers came from the citizen's own pockets, not Jaya's. The 100 car official motorcades were also an insult to this country's poor. And just as the citizen cannot claim to be a "victim of political conspiracy", neither can the politician who is caught and sentenced. Whether we sentence any other politician is irrelevant, each corrupt politician should be treated as an enemy of this great nation and dealt with accordingly.

jaideep shirali

3 years ago

Amazing that we still have persons who support the corrupt, when to most citizens, corruption is this country's worst enemy. Jaya and other corrupt persons deserve the harshest punishment, not sympathy. The few crumbs thrown at the poor from government coffers came from the citizen's own pockets, not Jaya's. The 100 car official motorcades were also an insult to this country's poor. And just as the citizen cannot claim to be a "victim of political conspiracy", neither can the politician who is caught and sentenced. Whether we sentence any other politician is irrelevant, each corrupt politician should be treated as an enemy of this great nation and dealt with accordingly.

jaideep shirali

3 years ago

Amazing that we still have persons who support the corrupt, when to most citizens, corruption is this country's worst enemy. Jaya and other corrupt persons deserve the harshest punishment, not sympathy. The few crumbs thrown at the poor from government coffers came from the citizen's own pockets, not Jaya's. The 100 car official motorcades were also an insult to this country's poor. And just as the citizen cannot claim to be a "victim of political conspiracy", neither can the politician who is caught and sentenced. Whether we sentence any other politician is irrelevant, each corrupt politician should be treated as an enemy of this great nation and dealt with accordingly.

jaideep shirali

3 years ago

Amazing that we still have persons who support the corrupt, when to most citizens, corruption is this country's worst enemy. Jaya and other corrupt persons deserve the harshest punishment, not sympathy. The few crumbs thrown at the poor from government coffers came from the citizen's own pockets, not Jaya's. The 100 car official motorcades were also an insult to this country's poor. And just as the citizen cannot claim to be a "victim of political conspiracy", neither can the politician who is caught and sentenced. Whether we sentence any other politician is irrelevant, each corrupt politician should be treated as an enemy of this great nation and dealt with accordingly.

N Ramesh

3 years ago

Technically speaking, this is the only case in which Madam could have come out unscathed, by merely resorting to the legal tactics of 'admission of guilt', on account of which she would have merely paid some fine and penalty and thus avoided a harsh sentence !

But unfortunately she was wrongly and foolishly advised by a bunch of worthless Chartered Accountants and Senior Lawyers, including some so-called Legal Luminaries, who took a lot of money as fees from her all along and not only did a poor job but also misguided her all these years !

N Ramesh

REPLY

MOHAN

In Reply to N Ramesh 3 years ago

I agree !

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