When Singapore set up an international financial hub in the late 1960s, the city-state was thinking both fast and slow—seizing an immediate opportunity, and opening a path to long-term economic development. Half a century later, India is attempting something similar in Prime Minister Narendra Modi's home state of Gujarat. But without much thought going into what exactly it's building, for whom and for what purpose, all it may get is a casino for the local rich. For Singapore, the British pound's 1967 devaluation was the moment of reckoning. For one thing, it raised the profile of Dick van Oenen, a Dutch trader who had made a "significant windfall" for both his employer—Bank of America—and for the newly independent city-state from that abrupt 14% change. But beyond the immediate cash, Singapore saw a broader canvas.
Private Sector Lender Karnataka Bank on Friday said it has reported to the RBI a fraud of about Rs 34.16 crore in credit facilities extended to IL&FS Transportation Networks, which is a dud account now. "The bank has reported to RBI (Reserve Bank of India) a fraud in the credit facilities extended earlier to IL&FS Transportation Networks Ltd with an outstanding balance of Rs 34.16 crore (defaulted entity),' Karnataka Bank said in a regulatory filing. The lender said IL&FS Transportation had availed of credit from it during 2016 under multiple banking arrangement in which Karnataka Bank was one of the members.
The National Company Law Tribunal (NCLT) has given approval for the settlement of Rs 707.70 crore claim made by Fagne Sonagarh Expressway (FSEL), a special purpose vehicle of IL&FS for the expressway project, from National Highways Authority of India (NHAI). The tribunal, chaired by members Mohammed Ajmal and V Nallasenapathy, allowed FSEL to receive the settlement amount of Rs 707.709 crore (subject to any deduction of tax as applicable and any further withholding of an amount of Rs16.93 crores towards royalty payment).
The National Company Law Tribunal (NCLT) has approved the settlement claim of Rs 707.709 crore made by Fagne Sonagarh Expressway Limited (FSEL), a special purpose vehicle of IL&FS for the expressway project, from National Highways Authority of India (NHAI). The settlement amount will be paid by NHAI under the approved guidelines for resolution of road projects that have been stuck for various reasons. The NHAI Conciliation Committee had last year approved the claim for FSEL.
The National Company Law Tribunal (NCLT) has given approval to the settlement of Rs 707.70 crore claim made by Fagne Sonagarh Expressway (FSEL), a special purpose vehicle of IL&FS for the expressway project, from National Highways Authority of India (NHAI). The tribunal, chaired by members Mohammed Ajmal and V Nallasenapathy, allowed FSEL to receive the settlement amount of Rs 707.709 crore (subject to any deduction of tax as applicable and any further withholding of an amount of Rs 16.93 crores towards royalty payment).
The Government has ordered an inquiry into the books of Mother Dairy Fruit and Vegetable Private Ltd (MDFVL), a wholly-owned subsidiary of the National Dairy Development Board. Responding to a question in the Rajya Sabha, Minister of State for Finance and Corporate Affairs Anurag Thakur said, "An inquiry under Section 206 of the Companies Act, 2013 was ordered." Section 206 of the Companies Act gives the Registrar of Companies the power to call for information, inspect books and conduct inquiry with respect to any company. Thakur was responding to a question by Manoj Jha on losses of MDFVL in the Rajya Sabha on February 9.
Unfortunately, the book does not provide much new information and heavily relies on already-published material. It is repetitive about IL&FS' "Rs 91,000 crore debt" and other well-documented failings. In addition, it is complicated for someone new to the arcane subject of project financing. But for someone who wants to understand the IL&FS scam, it could be a good start.
The government is set to amend laws to streamline the functioning, especially the disciplinary aspects, of three professional institutes — the Institute of Chartered Accountants of India (ICAI), Institute of Cost and Works Accountants of India (ICWAI) and Institute of Company Secretaries of India (ICSI). A bill to amend relevant provisions of laws governing the three bodies is expected to be introduced during the second half of the budget session of Parliament. The idea is to step up oversight on the three bodies after a committee suggested several changes al-most three years ago. In fact, some of the proposals have been accepted, the legal changes are being undertaken in consultation with the institutes.
Large unlisted companies of systemic importance will soon have to follow more stringent financial reporting requirements like publicly traded companies, under a government notification issued on Friday, which brings into force a Companies Act provision that the government had introduced last year through an amendment. The corporate affairs ministry will frame rules mandating specified unlisted companies to prepare quarterly or biannual financial statements and get them reviewed or audited. At present, unlisted companies only need to prepare annual financial statements.
The historic contraction in India's gross domestic product (GDP) amid the tense border stand-off with a wealthier nuclear- armed neighbour has prompted Union finance minister Nirmala Sitharaman to promise a Budget like no other. To stand true to her words, Sitharaman will have to address five key challenges confronting the Indian economy. Most of them predate covid-19 but have gained urgency after the economic devastation wreaked by the lockdown imposed following the coronavirus outbreak.