Citizens' Issues
Tribunal quashes Kingfisher's interim plea in debt case
The Debt Recover Tribunal (DRT) on Friday quashed the interlocutory application of tycoon Vijay Mallya's defunct Kingfisher Airlines Ltd for modifying its reply to the original application and its counter-petition seeking Rs3,000 crore from the 17 banks to which it owes about Rs9,000 crore debt.
 
"Tribunal's presiding officer Justice CR Benkanahalli dismissed Kingfisher's plea after the consortium of the banks challenged it saying the time limit to seek modification had lapsed," counsel for lead bank SBI told reporters later.
 
Opposing the airline's interim plea on Tuesday, the consortium's counsel had said as the original application was filed on 25 June 2013, the airline had enough time to plead its case than seeking a modification when the hearing was at the final stage.
 
Claiming that the consortium had violated the terms of the master debts recast agreement (MDRA), the airline counsel argued that it suffered losses after signing it (agreement) on 21 October 2010 as its banks failed lend more money in time.
 
"The banks did not lend money to the airline in time as per the agreement, resulting in cash crunch and operational loss," he said.
 
The tribunal has been hearing the debt recovery case on almost daily basis after the Supreme Court directed it in May to wind up the arguments in two months.
 
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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Kerala imposes 14.5% tax on 'junk food' in Kerala
Kerala Finance Minister Thomas Issac, in his first budget presented in the assembly on Friday, imposed 14.5% 'junk tax' on popular fast-food items like burgers, pizzas, tachos, doughnuts, sandwiches, burger patties, pasta, bread fillings and other food provided by branded restaurants.
 
"I expect to raise Rs10 crore through this," said Issac.
 
The major cities of the state like Thiruvananthapuram, Kochi and Kozhikode are all home to popular branded restaurants and this has come at a time when popular American burger chain, Burger King opened its first outlet in the state at Kochi last month.
 
Even as Issac has taxed the junk food, he appears to have hit the ordinary man by imposing five percent tax on food items like atta, maida and rava, a measure he expected to bring in Rs50 crore to the exchequer.
 
He also said that it has now been noticed that traders bring in coconut oil from outside the state to sell here, when coconut oil tax was not levied.
 
"What I have done is I have decided to impose a five percent tax on coconut oil and use the entire proceeds to help the coconut farmers in Kerala by increasing the minimum support price from Rs25 to Rs27," said Issac.
 
But the new generation segment of the Kerala society was not too happy as they know they will have to pay more for their favourite meals.
 
"This is not fair at all as now our 'meal' which we have at least once a week will go up by minimum Rs20 and this is too much," said college students spotted in front of a popular branded restaurant in the state capital.
 
State BJP spokesperson JR Padmakumar said one fails to understand the logic through these flip-flop measures adopted by Issac, while Congress leader Bindu Krishnan said its unfortunate that the minister has hiked the tax on the common man's food items like atta, maida and rava.
 
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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Nifty, Sensex to move sideways to down – Weekly closing report
We had mentioned in last week’s closing report that Sensex, Nifty were vulnerable to a short-term decline. The major indices in the Indian stock markets were trading listlessly through the week. On a weekly basis, the markets ended flat with the Sensex and Nifty marginally lower and the Bank Nifty marginally higher than last week’s close. The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
On Monday, positive global cues, along with higher crude oil prices and firm rupee buoyed the Indian equity markets for the sixth consecutive session on Monday. The key indices traded with appreciable gains to reach their new 2016 intra-day high levels, as healthy buying was witnessed in capital goods, oil and gas, and metal stocks. The BSE market breadth was skewed in favour of the bulls -- with 1,724 advances and 1,016 declines.
 
Even though Indian commercial banks' shares have moved higher, ignoring Brexit (Britain exiting European Union), the currency volatility risks have to be understood, said US investment banking firm Jefferies in a report. Banks need to make provisions for their exposures to corporate with unhedged foreign currency exposure (UFC) and additional capital buffer for high risk UFCEs, the report said. Jefferies estimate the risk exposure at 1.7% of gross credit exposure for banking system. Banks have built Rs13 billion in provisions and Rs29 billion in additional capital as of FY16. According to the report, Bank of Baroda (BOB) is the only to report Liquidity Coverage Ratio (LCR) in British pound implying five per cent plus of liability in that currency. “This may result in higher hedge costs going forward -- marginal NIM (net interest margin) negative. This of course depends on the currency composition on the asset side -- unfortunately we don't have sufficient public data to delve deeper," the report said. Bank Nifty closed at 18,097.65, up 0.62%.
 
On Tuesday, bearish global cues, subdued the Indian equity markets. Consequently, the key indices traded in the red during the late-afternoon session. Heavy selling pressure was witnessed in automobile, banking and information technology (IT) stocks. The BSE market breadth was tilted in favour of the bears -- with 1,277 advances and 1,476 declines.
 
China is highly concerned with Indian trade remedy measures against Chinese steel products, the Ministry of Commerce said. The Indian government has launched an anti-dumping investigation into colour-coated steel sheets imported from China. It is the fifth such probe against China from India this year, the highest record among WTO members, according to a statement on the ministry's website. The global steel industry was experiencing difficulties due to sluggish economic growth and weak demand, but abuse of trade remedy measures would not help resolve industrial overcapacity but hamper normal trade, the statement said. SAIL shares closed at Rs47.50, up 1.50% on the BSE on Tuesday.
 
Wednesday was a market holiday on account of the Muslim festival Eid-ul-Fitr. On Thursday, the major indices of the Indian markets ended flat compared to Tuesday’s close and there were just marginal gains. Technology stocks, including those in media and entertainment space, came under selling pressure with their sectoral indices losing over 1.5%, even as the indices for fast-moving consumer goods, healthcare and banking sectors closed with gains.
 
Negative global cues and profit booking dragged the key Indian equity markets lower on Friday. The equity markets traded flat and ended marginally in the red, as heavy selling pressure was witnessed in capital goods, banking and oil and gas stocks. Midcap and smallcap indices traded lower. Pharma, auto and IT indices traded with gains. PSU bank, FMCG (fast moving consumer goods), realty and metal indices traded in the red.

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