OPINION, P8&9 COMPANIES, P6 INTERNATIONAL, P16 THE ECONOMIST NCLT HEARING TWEETING UP A STORM For all the talk, India doesn't really have a sizeable middle class — reforms are the key! Advice sought can't be 'interference' as alleged by Mistry: Tata Sons US President Trump stirs global turmoil with expletive for Africa SUNIL JAIN 4JudgesCase: Graft, judicial nepotism are the real issue KOLKATA, SATURDAY, JANUARY 13, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOLUME XXVII NO. 64, 18 PAGES, `8.00 (NORTH EAST STATES & ANDAMAN `13.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E READ TO LEAD SENSEX: 34,592.39 ▲ 88.90 NIFTY: 10,681.25 ▲ 30.05 NIKKEI 225: 23,653.82 ▼ 56.61 HANG SENG: 31,412.54 ▲ 292.15 `/$: 63.64 ▲ 0.03 `/€: 77.17 ▼ 1.08 BRENT: $68.74 ▼ $0.52 GOLD: `29,838 ▲ `232 THE SUPREME COURT’S SPLIT DECISION Four senior judges revolt against CJI FE BUREAU New Delhi, January 12 THE COUNTRY'S TOP court appeared precariouslydivided on Friday,afterfourjudges,the senior-most after the Chief Justice of India (CJI), took the unprecedentedstepofholding a press conference to air their differences with the CJI over the way the highest judicial body is administered. While these judges,led byjustice Jasti Chelameswar, did not elaborate much on the issues involved, they shared a letter they had recently sent to the CJI with the media, where it is alleged that “cases having farreaching consequences” were assigned by“the Chief Justices of this Court” to the benches “of their preference” without assigning any reason. Chelameswar, who had in the past expressed his contrarian views on many issues concerning the judiciary in the relevant fora,including on the SC-imposed collegium-system to appoint and promote judges, acknowledged that it They have made a point about judge Loya's case... Needs to be investigated properly and looked at from the highest levels of the SC... All citizens are looking at this issue and it's important that it’s addressed. — RAHUL GANDHI, CONGRESS PRESIDENT Justices Sharad Bobde (left) and L Nageswara Rao, who later visited Chelameswar’s residence was“an extraordinaryevent in the historyof anynation,more particularly this nation”. He said,justice Ranjan Gogoi,the next in line to take over as the CJI in October this year, justices MB Lokur and Kurian Joseph had met the CJI Dipak Misra earlier in the day on a “particular issue” but their efforts to persuade him to “take steps to protect the institution”had failed. Two more SC judges — SA BobdeandLNageshwaraRao— went to Chelameswar’s resi- dence,wherethehurriedlyconvened press conference was held,laterintheday,raisingthe possibility that they too owed allegiance to the four judges. On its part, the government, which is at variance with the Supreme Court on how appointmentsandpromotions of the judges are to be made — the idea of a National Judicial Appointments Commission (NJAC) floated by it was struck down by the court — chose not to ostensiblystep in. Soon afterthe press conference,the CJI is believed to have met attorneygeneral KKVenugopal to discuss the way forward. There were rumours of the CJI too planning to meet the media but that did not materialise.IfMisrachoosesto resign, Chelameswar is next in line to be CJI. Intheseven-pageletter,the fourjudges mentioned howan order passed by some SC judges was recalled by the bench headed by CJI Misra in the RP Luthra case. Continued on Page 2 Justice J Chelameswar, the constant dissenter FE BUREAU New Delhi, January 12 (From left) Justices Jasti Chelameswar, Ranjan Gogoi, Kurian Joseph and Madan Lokur arrive to address the press on Friday. EXPRESS PHOTO BYABHINAV SAHA Possible triggers: MoP, medical scam cases FE BUREAU New Delhi, January 12 ITIS NOTthefirsttimethatjustice J Chelameswar has hit the headlines. Not to mention his dissenting judgment in the NationalJudicialAccountability Commission(NJAC)caseandthe judges’ bribery case, he even stopped attending meetings of the collegium in 2016 when TS Thakur was CJI as he found its procedures“most opaque”. Expressing his unhappiness overtheprocess,hehadsaidthe “majority gangs up” to shoot down genuine objections against undesirable candidates being chosen to be judges of highercourts. “No reason, no opinion is recorded. Just two people decide the names and come backtothemeetingandaskfor a yes or no,”he had said. Continued on Page 2 THE SUPREME COURT has been witness to various highvoltage internal battles lately, the flashpoint being the judges' bribery case where it wasallegedthatattemptswere being made to bribe SC judges to get a favourable ruling in medical admission scam case involving retired Orissa High Court judge IM Quddusi. The Supreme Court fivejudge Constitution bench headed by the Chief Justice of India (CJI) had overturned an order of a two-judge bench led by justice J Chelameswar that directed setting up of a larger bench to hear the matter, saying CJI Dipak Misra was the “master of the court” and had the sole prerogative to allocate matters. Continued on Page 2 IRS BOOST THE NATIONAL Company Law Tribunal has approved the proposed merger between Idea Cellular and Vodafone India, reports PTI. Both the groups can go ahead for the final approval for merger from the department of telecom after Vodafone's appeal for the scheme also gets NCLT's nod. As per the latest data published by Trai, Idea and Vodafone jointly have over 40 crore mobile subscribers and together account for the largest share in Indian telecom segment. PAGE 6 Forex reserves scale record high INDIA'S FOREIGN exchange reserves scaled to a record high of $411.125 billion on January 5, with an increase of $1.758 billion over the previous week, reports fe Bureau in Mumbai. Foreign currency assets, which form a key component of reserves, rose by $2.045 billion from the previous week to $387.149 billion. Gold reserves, however, fell by $294.40 million to $20.42 billion. Special drawing rights from the IMF rose by $3.2 million from the previous week to $1.514 billion. PAGE 10 Q2 FY18 % growth Q3FY18 Revenue Net profit 1.29 37.6 « NCLT okays Idea-Vodafone merger (` cr) « Century: The PSLV-C40 carrying Cartosat series and 30 other satellites lifts off at Sriharikota on Friday, Isro’s 100th launch THE COUNTRY'S SECOND largest IT services exporter, Infosys registered a 37.6% sequential rise in net profit for the third quarter of FY18 boosted by a tax reversal of $225 million following a recent agreement with the US Internal Revenue Service (IRS); sans this,the company’s bottom line would have actually dipped. Infosysreportedanetprofit of $796 million for the third quarter compared with $578 millioninthesecondquarterof the fiscal, even as it recorded a sequential dollar revenue growth of 1% (0.8% in constantcurrency)to$2.75billion. Evaluatedatagrossprofitlevel, the IT major recorded a 0.3% decline in the quarter. 5,129 QuickPicks IT FIGURES 3,726 ■ Science & Tech, P15 FE BUREAU Bengaluru, January 12 « Sometimes, computer programs seem too human for their own good. As a consequence, people may be embarrassed to ask for help in intellectual tasks — AK GANGULY FORMER SC JUDGE The move by these senior judges could have been avoided. I hope that all judges, including CJI, would rise to the occasion and neutralise the divisiveness. — KK VENUGOPAL ATTORNEY GENERAL The allegations impinge upon independence of the judiciary without which we will be no better than our South Asian neighbours. — ABHISHEK MANU SINGHVI SENIOR SC LAWYER AND CONGRESS SPOKESPERSON Today, the SC is at its lowest esteem and even worse than emergency days. The four judges want to send a clear message that the courts are above politics. — MOHAN PARASARAN FORMER SOLICITOR GENERAL Infosys net meets estimates as tax gain props growth 17,794 Anthropomorphic digital assistants: Losing face CJI cannot sit on his own judgment (assigning matters to benches). If seniormost judges are not confident, then won't it not percolate to masses? EXPRESS PHOTO: ABHINAV SAHA 17,567 Special Feature Reactions During the third quarter, Infosys concluded an advance pricing agreement with the IRS and this reversed an income tax expense provision of $225 million. It also received an income tax refund of $31 million. These signifi- cantly propped up the net profit figure. Sanjoy Sen of Aston Business School, UK, said, “The timing of the tax reversal has been immensely fortuitous for Infosys and made a significant difference betweenwhatwould have otherwise beenviewed as a mildly positive performance, as against a reasonablygood performance with the ability to swing market sentiment in its favour. This also provides Infosys the impetus to move full steam ahead following the addressing of past internal issues under their new leader.” The results didn't surprise analysts who had already factored in the tax provision impact. Adjusted for this, Infosys’ results came in just a tad above estimates. Continued on Page 2 Up and up FE BUREAU IIP cheers but retail inflation a dampener The IIP positively surprised on Friday with the November figure coming in at a solid 8.4% higher than a year ago, a 25-month high, against market expectations of around 5%. But this cheer was offset by CPI or retail inflation, which accelerated in November to a 15-month high of 4.88%, and rose further to 5.21% in December. Retail inflation 10 8 8.35 2 0 (% rise, y-o-y) CPI core CPI food 5.21 6 4 CPI 5.2 4.6 6.07 4.96 IIP 14.4 15 10 5 0 6.7 Mining Electricity (% change, y-o-y) Manufacturing Overall IIP 10.2 8.4 3.9 6 4.9 1.1 -2 -4 July 2016 -5 Dec 2017 Source: MoSPI April 2016 Nov 2017 MAESTRO’S EVENING: Musician TM Krishna with Seema Chishti and Amrith Lal ofThe Indian Express at the Express Adda in New Delhi on Friday. MULTI-YEAR CONTRACT ● `750-CR DEPOSIT TCS wins $2-bn US insurer order Unitech asks SC for more time FE BUREAU Bengaluru, January 12 FE BUREAU New Delhi, January 12 THE COUNTRY'S LARGEST IT services exporter, Tata Consultancy Services (TCS) continued its momentum of bagging multi-billion dollar deals with a multi-year contract from Transamerica worth over $2 billion, the company announced on Friday. Just last month, TCS had entered into a $2.25-billion IT outsourcing contract with Nielsen, a global TV rating measurement company. TCS said it will digitise the life insurance and annuities business of Transamerica, which is a leading provider of life insurance,retirement and investment solutions in the US.Thiswill amount to servic- Large deals bagged by TCS ing 10 million insurance policies through a single platform. The agreement is expected to lead to annual run-rate savings of about $70 million initially, going up to $100 million over time, for Transamerica, with much of this expected to reflect in the company’s earnings. REALESTATE FIRMUnitechon Friday sought more time to deposit `750 crore in the Supreme Court, but agreed to deposit `18 crore by Saturday. While Unitech submitted a refund plan to the bench led by Chief Justice Dipak Misra, it saidthatitneedssixmonthsto deposit money. The next date of hearing is January 29. Meanwhile, the government told the bench that it willwithdrawits petition from the National Company Law Tribunal that had last month ordered removal and suspension of all nine of Unitech’s directors. Continued on Page 2 Continued on Page 2 Company Year Pearl Group 2005 Citi Value $847 m 2008 $2.5 bn Friends Life 2011 $2.2 bn Nielsen $2.25 bn 2017
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