OPINION, P2 EXPRESS ADDA ACROSS THE AISLE , P CHIDAMBARAM ‘Peter was getting extraordinarily rich... Let Peter share a little bit with Paul’ Page 4 What happened to Indradhanush? IDEA EXCHANGE RAJIV KUMAR Vol XVII No 18 Tony Hall ‘Our key role is to keep saying there’s more to the world than social media will tell you’ Page 8 Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM LEISURE DESIGN=ART? NEW DELHI SUNDAY, FEBRUARY 25, 2018 12 Pages, `8 (Patna `11, Raipur `10) FINANCIALEXPRESS ON SUNDAY PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE PNB SCAM Privatisation of PSBs ruled out by Jaitley ● Says politically unacceptable; slams regulators, auditors PRESS TRUST OF INDIA New Delhi, February 24 FOUND IN TRANSLATION Regional stories are finding more favour with mainstream publishers, with literary translators shining in the limelight. But is enough being done for this oft-neglected segment? Page 7 WORDSWORTH THETALL BOY STORY An insider’s account of the success story of Hyundai’s Santro car told in a gripping tale in Santro: The Car That Built a Company Page 5 FINANCE MINISTER ARUN Jaitley on Saturday ruled out privatisationofpublicsectorbanks as a response to the `11,400crore fraud hitting Punjab National Bank,saying the move may not be politically acceptable.Speakingataneventinthe national capital,he said a lot of people have started talking of privatisationintheaftermathof the PNB fraud."This (privatisation) involves a large political consensus.Also, it involves an amendmenttothelaw(Banking RegulationAct).My impression is that Indian political opinion may not find favour with this ideaitself.It’saverychallenging decision,” he said. The FM also blamed inadequate supervision by regulators and auditors, as well as sloppy bank management, for the `11,400-crore fraud at India’s second-biggest stateowned lender, and said, if needed, laws would be tightened to punish fraudsters. “There were at least multiple layers in the auditing system who chose to either look theotherwayordoacasualjob. You had inadequate supervision.Therefore,I thinkwho did ODD & EVEN ❝ ❝ ❝ SPOTLIGHT In the Indian system, we politicians are accountable, the regulators are not — ARUN JAITLEY, FINANCE MINISTER what,will eventually be found out in the course of investigation,”he said. The FM went on to say: “Regulators have averyimportant function. Regulators ultimately decide the rules of the game and regulators have to have a third-eye that is to be perpetuallyopen.But,unfortunatelyin the Indian system,we politiciansareaccountable,the regulators are not. The law would be tightened further, if necessary, in order to find out wherethey(fraudsters)areand whatistheextremeactionthat lawpermitsagainstsuchdelinquent persons.” Without naming either the alleged kingpin of the fraud, billionairejewellerNiravModi, or PNB, he said it is “worrisome”that not a single red flag was raised when the fraud was perpetuated. Continued on Page 11 QuickPicks ROHNIT PHORE Saudi oil minister says country interested in Indian refineries TO DEEPEN TIES between Saudi Arabia and India, the oil-rich nation’s Saudi Aramco oil company plans to invest in Indian refineries apart from the West Coast refinery. The company has signed an agreement to initiate talks for a possible stake in the proposed `1.8 lakh-crore refinery in Maharashtra. The refinery-cum-petrochemical complex on the west coast is expected to be commissioned by 2022. PAGE 3 Flipkart gets advantage of Snapdeal’s decline Market share and order value of e-commerce companies Average market share (%) Sep-Dec Amazon Flipkart Snapdeal Average order value (`) 3.8 2016 28 2016 Shopclues 2.7 .8 12 2017 3.3 1,738 2,058 2,574 3,133 2017 2,200 1,834 54.8 56 Source: KalaGato Snapdeal customers have moved more to Flipkart than to Amazon ANUSHREE BHATTACHARYYA New Delhi, February 24 THE ECLIPSE OF Snapdeal seemstohavebenefitedhomegrown e-commerce firm Flipkart more than its rival, USbased Amazon India. As per data sourced from market research firm KalaGato, while Amazon India remains the leaderintermsofmarketshare in the online shopping space, its growth declined by1.2 per- READ TO LEAD Design has too often been elevated to the status of art, but when does design become art? Page 9 centage points to 54.8% during the September-December period of calendar 2017,compared to the same period last year. However, Flipkart saw its market share increasing by about 10 percentage points during the same period. This, analysts say, could be because the customers who regularly shopped on Snapdeal may have moved more towards Flipkart than Amazon. A reason could be that both Snapdeal and Flipkart retailed more of electronics, mobile phones and appliances, which have larger traction on online platforms. Snapdeal's market share declined to 3.8% during September-December 2017 compared to 12.8% during the same period in 2016. However, expect a fiercer competition in the days to 624 553 come, as Amazon has also increasingly started retailing electronics,mobilephonesand appliances. An Amazon spokesperson said,“In just a little over four years, customer have trusted Amazon. We remain focused on the long-term.” While Amazon commands the leadership position in terms of market share, as far as average order value goes, Flipkart continues to maintain its lead. During September-December 2016, the latter's average ordervalue stood at `2,574 crore, which climbed to `3,133 crore in September-December 2017. In comparison, Amazon's average order value moved from `1,738 crore during September-December 2016 to `2,058 crore in the same period of 2017. Publishers look to beat fake news SHINMIN BALI Mumbai, February 24 AS CONCERN OVER fake news and how to beat it becomes a global concern, publishers are looking to build or strengthen their own competencies to be able to better distribute their contentwithoutcompromising on quality. At the World Economic Forum in Davos in January,UK Prime MinisterTheresa Maywas rathervocal about the pressureappliedontechcompaniestorespondfastertoextremistcontentonsocialmediaplatforms. More recently, FMCG giantUnileverthreatenedtotake itsadvertisingdollarsawayfrom Google and Facebook if the tech giants did not clean up the 'swamp'withinwhichextremist andillegalcontentfindsspace. Atthecoreareissuesregardingfakenewsthatprominently came to the fore during the 2016USelectionsandhaveonly snowballed since. Facebook shook the system up when it announced changes to its news feed earlier this year,which will bringbackthefocusonshowing peoplemorecontentfromtheir first degree connections. Continued on Page 11 ON TUESDAY ‘NEWS, AND THE UGLY TRUTH’ Banks told to link CBS with SWIFT CBI questions PNB managing director PRESS TRUST OF INDIA Mumbai, February 24 PRESS TRSUT OF INDIA New Delhi, February 24 THE RESERVE BANK has set an THE CBI SATURDAY examined April 30 deadline for all banks to link the Society for Worldwide Interbank Financial Telecommunications (SWIFT) with their core banking solution (CBS), the apex body of bankers has said.Indian Banks Association (IBA) chairperson Usha Ananthasubramanian said there is an urgencyto fasttrack SWIFT-CBS linkage. Asked about theApril 30 deadline, Ananthasubramanian said,"Correct. That could be a deadline, but it is an outer limit. Today, the urgency is such that everyone wants this (linkage of SWIFT to CBS) project to be on fast-track.” CBSisa software used to support most common transactions of a bank. In a release issued earlier this week, the RBI said it had alerted banks thrice since August 2016 for a possible misuse of the SWIFT infrastructure. "The risks arising from the potential malicious use of the SWIFT infrastructure,created bybanks for their genuine business needs, has always been a component of their operational risk profile.,” the release said. Continued on Page 11 Punjab National Bank's CMD Sunil Mehta and its executive director KV Brahmaji Rao in connection with the `11,400-crore PNB scam. Officials said the examination is focused on understanding how the crime was detected bythe bank and other procedural issues and their violations and they are not being treated as accused. Refusing to give out any further details, the officials said the agency is also questioning the 12 accused arrested by the agency so far. They said this is the first time FE BUREAU New Delhi, February 24 AGROUPOF statefinancemin- Sunil Mehta, PNB MD the agency has examined the top brass of the Punjab National Bank in connection with the fraud, which remained undetected for over six years. Continued on Page 11 ED attaches property worth `523 cr THE ENFORCEMENT Direc- torate on Saturday attached 21 properties, including a penthouse and a farmhouse worth over `523 crore, belonging to NiravModi and his group.The agency said it hasissuedaprovisionalorder for attachment of the assets under the Prevention of Money Laundering Act and seized a penthouse worth `81.16croreandaflatworth `15.45 crore in Mumbai."As GST: E-way bill to be rolled out from April 1 manyas21immovablepropertiesofNiravModiandcompanies controlled by him, with a market value of `523.72 crore, have been provisionallyattached.These include six residential properties,10officepremises,two flats in Pune, a solar power plant,afarmhouseinAlibaug and 135 acres in Karjat in Ahmednagar district," the agencysaid. —PTI isters (GoM) couldn’t reach a consensus on the final shape of tax return forms for taxpayers inGoodsandServicesTax(GST), as issues related to reconciliation of input tax credit (ITC) remainedunresolved.However, theGoMwillrecommendtothe GST Council that inter-state eway bill be implemented from April 1, Sushil Kumar Modi, Bihardeputychiefministerand head of GoM,said on Saturday. Comprehensive tax return forms and e-way bill, which is anonlinemechanismfortracking movement of goods, are crucial anti-evasion measures, but their implementation has been waylaid due to technical glitches faced by the GST Network,the ITbackbone of GST. Sushil Modi said the GoM considered two main proposals forreturn forms — one presented by Infosys chairman NandanNilekani and the other preparedbyacommitteeoftax officials. Modi said there was consensus on having a single return form every month and that credit claims by buyers and sellers should be matched. Continued on Page 11
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