QBiz: New Committee to Fix NPAs; Govt to Shut 2.25 Lakh Shell Cos
Here are the top business stories of the day.
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1. Shell Companies Crackdown: Over 2.25 Lakh Firms May Be Deregistered in 2018-19
The government plans to deregister more than 2.25 lakh suspected shell companies in the current financial year for not filing annual returns for the financial years 2015-16 and 2016-17.
Besides these 2.25 lakh firms, 7,191 limited liability partnership firms have also been identified and are likely be struck off from the RoC under Section 248 of the Companies Act, 2013 for non-filing of financial returns, according to a finance ministry statement.
“An opportunity of being heard will be given to these identified companies and LLPs by way of notices regarding their default and the proposed action,” the statement said. Appropriate action will be taken only after considering their response, it added.
(Source: BloombergQuint)
2. Air India Seeks Rs 2,000 Crore Additional Funding From Government
Cash-crunched Air India which delayed salaries for three months in a row, has sought additional funding of around Rs 2,000 crore from the government to tide over the situation, a senior company official said.
The airline is expecting these funds next month when the government moves the first batch of Supplementary Demands for Grants for 2018-19 in the Monsoon session of Parliament, the official said.
The national carrier has already received more than Rs 26,000 crore of the 10-year Rs 30,231-crore bailout package announced by the former United Progressive Alliance government in April 2012.
(Source: PTI)
3. Govt Weighs New Company for Faster Resolution of Bank NPAs
Interim finance minister Piyush Goyal on Friday, 8 June, announced the formation of a committee that he said will come up with recommendations to set up a mechanism for the speedy resolution of stressed assets in the banking system.
“A committee under the chairmanship of Sunil Mehta, non-executive chairman of Punjab National Bank, which over next two weeks will come out with their recommendations over setting up of an asset reconstruction company and/or asset management company for faster resolution of stressed assets,” he said.
Indian banks, already burdened by a near-record Rs 9.5 trillion ($141 billion) of non-performing asset (NPAs) as of last year, reported a further rise in bad loans in the March quarter after regulator Reserve Bank of India (RBI) withdrew half a dozen loan-restructuring schemes and tightened some rules.
(Source: Mint)
4. Hines Looks to Sell 50% Stake in Gurugram’s One Horizon Center
Real estate investor Hines India Ltd has decided to sell its 50% stake in One Horizon Centre, a premium commercial building in Gurugram’s Golf Course Road, two people familiar with the development said. The other half of One Horizon is owned by top developer DLF Ltd.
The sale of Hines’ share in the 800,000 sq. ft office tower may fetch around ₹700-800 crore, according to two property consultants who spoke on condition of anonymity.
One Horizon Center and Two Horizon Center are part of the same complex. Two Horizon is fully owned by DLF.
(Source: Mint)
5. Vodafone, Idea Name Circle Heads for Merged Entity
Vodafone India Ltd and Idea Cellular Ltd have announced appointment of nine executives each from their teams as circle heads for the merged entity, which is proposed to operate as Vodafone Idea Ltd, a person aware of the development said.
The announcement is learnt to have been made by Kumar Mangalam Birla, the non-executive chairman of entity resulting from the Vodafone-Idea merger, in an internal communication to employees.
From Idea, Rajendra Chaurasia will head Maharashtra and Goa circle, Sunil Tolani Mumbai, Sanjay David Odisha and Puneet Krishnan will be incharge of the Andhra Pradesh and Telangana circle, said the person quoted above.
6. PNB Case: ED Appeals to Court to Issue NBWs Against Nirav Modi, Others
The Enforcement Directorate appealed to a special court to take cognisance of its chargesheet and issue non-bailable warrants against diamantaire Nirav Modi and his family members in the over USD 2 billion Punjab National Bank fraud case.
The agency had last month filed a 12,000 page-charge sheet in the court against Nirav Modi and 23 others, including his father Deepak Modi, sister Purvi Mehta, brother-in-law Maiank Mehta, brother Neeshal Modi and another relative Nehal Modi.
The ED has charged the accused persons under various sections of the Indian Penal Code and the Prevention of Money Laundering Act (PMLA) in the over Rs 13,000 crore PNB scam case.
(Source: PTI)
7. Govind Shrikhande to Step down as Shoppers Stop Managing Director
Govind Shrikhande will step down as managing director of Shoppers Stop Ltd. effective June 30 as part of a board rejig at the retail chain.
Shrikhande has tendered his resignation to pursue other interest, his personal commitments and other engagements, Shoppers Stop said in an exchange filing on Friday, 8 June.
Chief Executive Officer Rajiv Suri has been appointed as an additional director and managing director of the company for a period of three years starting June 8, subject to approval of shareholders, the filing added.
Promoter Chandru L Raheja also resigned as non-executive chairman and director with immediate effect citing increasing personal engagements and seniority.
(Source: BloombergQuint)
8. Punjab National Bank to Sell Stake in Housing Finance Firm, Other Units
Punjab National Bank said on Friday, 8 June, that it will divest stake in its subsidiary PNB Housing Finance and other entities like BSE, ICRA and Crisil depending on market conditions. The shedding of stake in non-core assets is part of PNB’s reforms agenda adopted in January this year.
“The board of directors vide e-circulated agendas approved on June 8, 2018, has authorised the management to initiate the process and take appropriate decision to disinvest stake in PNB Housing Finance, ICRA Ltd, CRISIL Ltd and BSE Ltd at appropriate time depending on the market conditions and options available,” the bank said in a regulatory filing.
The disinvestment is in line with the reforms agenda unveiled on January 24 for public sector banks (PSBs) which are facing mounting bad loans and frauds, like over Rs 13,000 crore scam at PNB, allegedly carried out by diamond jeweller Nirav Modi and his associates.
(Source: PTI)
9. Digital Economy Changing the Nature of Trade Worldwide: Sunil Mittal
Indian entrepreneur and founder-chairman of India-based Bharti Enterprises Sunil Bharti Mittal has said that the digitally-driven economy is fast changing the global trade dynamics leading to policy friction.
“Digital economy is changing the composition, nature and speed of global trade leading to policy friction – today’s trade rules reflect 20th century patterns of trade,” Mittal in a statement on Friday, 8 June, said.
Indian billionaire who also drives market leader Bharti Airtel also stressed upon the importance of progressive World Trade Organisation (WTO) reform in response to current challenges, including digitalisation worldwide.
(Source: The Economic Times)
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