QBiz: NLCT Rejects Mistry’s Plea; SC Orders Aamby Valley Auction

The Quint’s compilation of business news from dailies across India.

Aamby Valley Resort in Pune is owned by the Sahara Group. (Photo Courtesy: Official Website of Aamby Valley Resort)

1. Cyrus Mistry’s Main NCLT Petition Against Tata Sons Dismissed

The National Company Law Tribunal (NCLT) on Monday refused to grant a waiver to Cyrus Mistry family firms from the minimum shareholding requirement for filing a petition alleging mismanagement and oppression of minority shareholders at Tata Sons Ltd.

NCLT also dismissed the main petition alleging mismanagement and oppression. In an oral order, the two-member bench dismissed the waiver petition and main petition. The final order will be available on Friday.

The Mistry family firms will now be moving the National Company Law Appellate Tribunal (NCLAT) against NCLT’s decision once they receive a copy of the order, said their lawyers.

The spat between the Mistry firms and the Tatas started on 24 October when Mistry was removed as chairman of Tata Sons. He was later ousted from its board.

(Source: Livemint)

2. Supreme Court Orders Aamby Valley Auction, Summons Subrata Roy

The Supreme Court on Monday directed the official liquidator of the Bombay High Court to auction Aamby Valley City, Sahara Group’s flagship property in Maharashtra, to recover the money it owes investors.

The apex court also directed Sahara India chief Subrata Roy to personally appear before the court at the next hearing in the case on 27 April.

“Verify, make an evaluation and proceed with sale,” the court said in a directive to the official liquidator of the Bombay High Court.

Sahara said in a statement on Monday:

“The market valuation of Aamby Valley is over Rs 1 lakh crore so auctioning under distress will be an undue benefit for any bidder.”

(Source: Livemint)

3. Paris Replacing Mauritius as Tax Haven, Citi Alerts Finance Ministry

Citi, once perceived as a master in regulatory arbitrage, has drawn the government’s attention to Paris, emerging as a new tax haven with Mauritius losing its charm.

In a recent meeting with officials of the finance ministry, Citi pointed out how some global banks and funds are taking advantage of India’s treaty with France to escape tax, sources in the financial market told ET.

Till 31 March, Mauritius was the preferred location to carry out such business. But this changed with the revision in the tax treaty between India and Mauritius: there will be capital gains tax on Indian securities bought by any Mauritius entity on or after 1 April.

(Source: Economic Times)

4. Indian Handmade Carpets May Get Government Trademark

The government is developing standards and a trademark to reinforce India’s position as the top source of handmade carpets and ensure that products comply with quality benchmarks.

The textile ministry has begun efforts aimed at creating a brand for Indian handmade carpets along the lines of Australia’s Woolmark, which is a guarantee of the highest quality of wool.

We are working on a brand… a trademark that will ensure that the products comply with the standards set by the organisation.

Mahavir Pratap Sharma, chairman, Carpet Export Promotion Council.

The idea is also to use existing geographic indications on handmade carpets from Kashmir, Mirzapur, Bhadohi and Banaras (Varanasi) and showcase them across the world using the planned mark of quality.

(Source: Economic Times)

5. Govt lists IOC, NTPC, SAIL for Rs 72,500 Cr disinvestment plan for 2017-18

The government will sell stakes in seven blue-chip state-run companies, including Indian Oil Corp and Steel Authority of India, as it looks to raise cash to fund its ambitious infrastructure and social projects.

The sales could fetch the government about Rs 34,500 crore at the last closing price of their stocks.

The finance ministry invited merchant banks and legal advisers on Monday to help with the share sales that are also crucial for the government to meet the fiscal deficit target of 3.2% of GDP in 2017-18. The government aims to raise Rs 72,500 crore from disinvestment during the period.

India needs investments of Rs 65,00,000 crore in the five years to 2019 to build roads, ports, airports and power stations as it seeks to expand its economy and raise living standards.

(Source: Hindustan Times)

6. Nuclear Fuel Complex Surpasses Own Record

The Nuclear Fuel Complex (NFC), the supplier of fuel for powering the country’s nuclear power programme, has set a world record by producing 1512 tonnes of fuel bundles for the PHWR (Pressurised Heavy Water Reactors) during 2016-17.

The performance betters its earlier production as well. Hyderabad-based NFC is the industrial arm of the Department of Atomic Energy and fuels all the operating nuclear reactors generating electricity.

The unique feature of the Complex is its comprehensive nuclear fuel manufacturing cycle — from ore to core, involving processing of both uranium and zirconium streams all under a single roof. It made a modest beginning with 100 tonnes per year and went on augmenting it’s capacity to cater to the fuel requirement of all the operating PHWRs and Boiling Water Reactors (BWRs).

(Source: BusinessLine)

7. Amazon to Double Investment on Seller Infra in India

Amazon may double its investments on seller infrastructure this year in India, as the latest bulge-bracket fundraising by Flipkart sets up a likely two-pony, photo-finish race for leadership in Web marketplace.

Warehouses, fulfilment services, service provider network, in-person support, and other services like seller cafes and instant registration to its marketplace would likely attract the potential investments, Amazon India director and general manager (seller services) Gopal Pillai told ET.

The commitment of fresh investment by Amazon follows a pronounced advance toward consolidation in India’s e-marketplace: This month, Amazon’s arch-rival Flipkart raised Rs 9,000 crore ($1.4 billion) in fresh funding to boost its marketplace, signaling its intent to strengthen its grip on a market that is getting increasingly differentiated after continued losses as competitors such as Snapdeal put the spotlight on profitability.

(Source: Economic Times)

8. Air India May Fine Unruly Fliers up to Rs15 L After Gaikwad row

Air India Ltd plans to fine unruly passengers up to Rs 15 lakh for delaying flights. The airline’s legal department has prepared a note after recent incidents of violence against staff, and the measure could be implemented soon.

Even a hotel on the roadside has a board ‘rights of admission reserved’. Air India, therefore, must have a procedure for handling such unruly passengers. Further, it is seen from the...incidents that unruly behaviour does not require any provocation.

The airline’s note reviewed by <i>Mint</i> says.

The note cited three incidents that it said showed the need for stiff fines – all three involve misbehaving Member of Parliaments.

(Source: Livemint)

9. Government Imposes 10% Import Duty on Wheat, Tur

The Centre has imposed an import duty of 10 percent on wheat and tur in a bid to check falling domestic prices and support farmers and traders.

The decision is significant as prices of agri commodities in the domestic market, especially pulses, are already under pressure due to a bumper crop.

The import duty will result in a slight firming of prices. In the case of wheat, apart from helping farmers realise a higher price, it would also help imports as landed prices would become relatively competitive

Tejinder Narang, Grain Analyst

Raising the import duty on wheat to 25 percent would, however, make imports prohibitive, said Narang. “But a further increase in duty is unlikely as the government has to replenish its stocks,” he added.

(Source: BusinessLine)