OPINION, P8 ECONOMY, P2 EDITORIAL Financial creditor status for homeowners of no use INTERNATIONAL, P16 LEONID BERSHIDSKY MODICARE DEAL SEALED Fixing Facebook’s fake news/data abuse problem will destroy its business model Health min prepares timeline for rollout, `10,000 cr allocated Van Dijk-led Naspers to raise up to $11 bn by trimming Tencent stake MUMBAI, FRIDAY, MARCH 23, 2018 VOLUME XXXXXV NO. 313, 20 PAGES, `6.00 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E WWW.FINANCIALEXPRESS.COM READ TO LEAD SENSEX: 33,006.27 ▼ 129.91 NIFTY: 10,114.75 ▼ 40.50 NIKKEI 225: 21,591.99 ▲ 211.02 HANG SENG: 31,071.05 ▼ 343.47 `/$: 65.11 ▲ 0.10 `/€: 80.24 ▼ 0.21 BRENT: $68.94 ▼ $0.53 GOLD: `30,495.00 ▲ `195.00 REJECTED CLAIMS Essar firms have lion’s share US PRESIDENT Donald Trump on Thursday took his boldest step to level the economic playing field with China, ordering sweeping tariffs on Chinese goods in a move that could escalate already tense trade relations between the world’s two biggest economies, reports Bloomberg. The president instructed US trade representative Robert Lighthizer to levy tariffs on at least $50 billion in Chinese imports. Trump was poised to sign an executive memo issuing the instructions on Thursday at the White House. Within 15 days, USTR will come up with a proposed list of products that will face higher tariffs. 15,000 0 Total 20 Amount claimed Operational creditors only workmen and employees 18 Amount admitted 78,847 rejected alongwith reasons for rejection of amounts,if any,to the respective operational creditors on the email id provided in the claim form,” the RP said. The other rejected claims include those of Essar firms EPC Constructions (`456 crore), Essar Power Hazira (`2 crore), Essar Academy (`6.9 lakh) and Essar Infrastructure Hazira (`1.1 lakh). FE had reported earlier that the list of claimants of Essar 52,537 3,154 30,000 49,212 45,000 Operational creditors other than workmen and employees 905 MORE THAN 40% of operational creditor claims rejected by the resolution professional (RP) of Essar Steel belong to companies related to Essar Steel,according to a document listing claims as on February 28. Of the `3,154-crore rejected claims, `1,351 crore are by Essar firms, the document shows. The largest claim rejection was that of Essar Power amounting to `893 crore of the `912 crore it had claimed. According to a footnote detailing the reasons behind the rejection, Satish Kumar Gupta, the RP, said the claim has been verified, and amounts admitted are based upon verification of proof of claim and records available with Essar Steel. “The resolution professional is currently in the process of communicating the amount admitted and or Financial creditors 3,307 SHAYAN GHOSH Mumbai, March 22 (` crore) 60,000 23,970 Trump hits $50 billion of China goods HOW THEY STACK UP 54,857 40% claims of operational creditors rejected by RP are that of Essar Steel group companies 2 Amount rejected 4,060 Steelincludeswhatappeartobe 21groupcompanies,whichare together looking to recover `6,012 crore from the steelmaker.Theseclaimsaccountfor approximately a fourth of the total claims filed by all operational creditors of Essar Steel, estimated at `22,914 crore. Meanwhile, Essar Steel, which had received resolution bids from ArcelorMittal and the VTB Bank-led Numetal, will see a second round of bidding as both the bids have been disqualified by the committee of creditors (CoC).Consultancy firm Grant Thornton and lawfirm CyrilAmarchand Mangaldas were the two advisers to the RPon this matter.The bids were disqualified in the context of the amendment to the Insolvency and Bankruptcy Code (IBC), which categorically states that promoters of defaulting companies cannot bid unless they repayall the outstanding loans before submitting their resolution plan. The otherresolution applicants which had earlier submitted EOIs includeTata Steel, Vedanta and Sumitomo Corporation.The last date forsubmitting the expression of interestwas October23,2017. Since then, Tata Steel has alreadybeen recognised as the highest eligible bidder for the loss-making Bhushan Steel, another of the 12 large assets that were first referred to the National Company Law Tribunal (NCLT). In August last year, the NCLT had appointed Gupta as the interim resolution professional (IRP) forEssarSteel.The company is among the 12 companies which the Reserve Bank of India (RBI) had asked banks to refer to the bankruptcycourt.EssarSteel,which has a steel-making capacity of 9.7 MTPA, owes more than `45,000 crore to lenders. ● BID FOR BINANI Lenders seek speedy resolution in NCLT MITHUN DASGUPTA Kolkata, March 22 LENDERS TO BINANI CEMENT on Thursday asked the Kolkata bench of the National Company Law Tribunal (NCLT) to ensure the resolution process is not delayed, even as theysought consideration of Dalmia Bharat’s resolutionplan.“Iftheofferisproper, the tribunal can consider it,” Pratap Chatterjee, the counsel forthe committee of creditor’s (CoC) of the debt-laden company, said in his submission before the bench. Theresolutionplansubmitted byRajputana Properties,an entity controlled by Dalmia Bharat, was passed by 99.4% votingbytheCoConMarch14, Abhrajit Mitra, the counsel for theresolutionprofessional(RP), Vijaykumar V Iyer, had said in his submission before the tribunal on March 19. Chatterjee also pointed out that the allegations bythe RPof “fraudulenttransactions”made by the promoters of Binani Cement had nothing to dowith the resolution process and that “all the details (of the alleged fraud) are in the data-room”. Continued on Page 2 VODAFONE-IDEA MERGER Special Features What Tesla Model 3 drivers love and hate about the car Now that the Model 3 is getting into the hands of the general public, outlets including Consumer Reports, Edmunds and Strategy Analytics have published their impressions ■ Motobahn, P15 Got your loan? Keep these six tips in mind From never missing your monthly installment to taking insurance for a big-ticket loan, here are some tips that can help you breathe easy after taking a loan ■ Personal Finance, P15 QuickPicks Govt paves way for tax-free gratuity of up to `20 lakh PARLIAMENT ON Thursday passed the Payment of Gratuity (Amendment) Bill 2017, paving the way ` for doubling the limit of tax-free gratuity to `20 lakh and empowering the government to fix the ceiling of the retirement benefit through an executive order, reports PTI. The Rajya Sabha passed the Bill, which was approved by the Lok Sabha last week, on March 15. Besides enabling the Centre to fix the ceiling, the Bill also empowers it to fix the period of maternity leave through executive order. PAGE 3 Ford, M&M ink pact to make SUVs and electric vehicle THE MAHINDRA Group and Ford Motor signed an MoU on Thursday to co-develop mid-size and compact SUVs and a small electric vehicle, the companies said in a statement, reports fe Bureau in Mumbai. The products that may be developed as part of the agreement will be targeted towards India and other emerging markets. As part of the pact, the mid-size SUV will be made on M&M's platform. It will be sold independently by both companies as separate brands. PAGE 6 Apex court orders status quo in RCom asset sale to RJio THE SUPREME Court on Thursday asked Anil Ambani-led Reliance Communications to ‘maintain status quo’ on the `25,000-crore deal for the sale of its wireless assets to Reliance Jio Infocomm (RJio), reports fe Bureau in New Delhi. A bench comprising justices AK Goel, RF Nariman and UU Lalit, while refusing to vacate the stay ordered by an arbitral tribunal early this month, said the sale will be subject to its final order. It posted the matter for further hearing on April 5. PAGE 6 Balesh Sharma to helm affairs as CEO FE BUREAU New Delhi, March 22 VODAFONE AND ADITYA BIRLA Group’s Idea Cellular, which are in the final stages of completing the merger of their operations in the country, on Thursday announced the newleadership team of the merged entity. As indicated earlier,Kumar Mangalam Birla,the chairman of the AV Birla Group, will be thenon-executivechairmanof the merged entity. The two firms have named Balesh Sharma, currently chief operatingofficerofVodafoneIndia, the new CEO of the merged entity. He will be responsible for the combined business’s KM Birla will be the non-executive chairman of the merged entity; Balesh Sharma (right) ofVodafone India strategy and its execution as well as driving integration. The current CEO of Vodafone India,Sunil Sood,will join the Vodafone Group AMAP leadership team and also help governance through board memberships. Himanshu Kapania, the current CEO of Idea Cellular, will be nominated non-executive board member of the merged entity. However, both Sood and Kapania will continue in their currentrolesuntilsuchtimeas the merger is completed. An alumnus of Mayo College with an engineering degree and MBA from Rajasthan University, Balesh’s professional experience spans over 25 years across cultures and geographies, building a strongtrackrecordoftransformational leadership, successful turnarounds and leading for impact. Having joined Vodafone (then Hutch) in 2003, he has held several senior management positions in India and internationally. Continued on Page 2 ● IBC AMENDMENTS ● TRADE WAR FEARS No relaxing of related party rule Sensex, Nifty feel jitters BANIKINKAR PATTANAYAK New Delhi, March 22 A PANEL REVIEWING the Insolvency and Bankruptcy Code (IBC) is in no rush to suggesteasingtherelatedpartycriteria forthe bidding of stressed assets,asitdecidestostaunchly guard against any scope for a back-doorentrytodubiouspromoters from any such relaxation,sources told FE. The government is also considering another proposal to empower the National CODE OF INTEGRITY ■ Committee wants to ensure no dubious promoter gets back-door entry ■ Government also mulls empowering NCLT to halt insolvency before a resolution plan is approved Company Law Tribunal (NCLT) to stop insolvency or bankruptcy proceedings once a matter is admitted with it but has not yet reached the resolution stage, upon requests by a majority of the committee of creditors. A source, however, said the panel hasn’t taken a final call on this issue, given a view that such a proposal might give errant promoters a window to evade the resolution process. INDIAN EQUITIES SLIPPED deeper into the red on Thursday with the benchmarks Sensex and Nifty shedding about 0.4% each to end the day at 33,006 (-129 points) and 10,114.75 (-40.50), respectively,reportsfeBureau in Mumbai. This is the 10th day of decline in 15 sessions this month, indicating a ratio of two‘down’days to every‘up’ day in the month. Continued on Page 2 CARICATURE: ROHNIT PHORE CFO LIFETIME ACHIEVEMENT: BHARAT DOSHI WORK IS WORSHIP SHOBHANA SUBRAMANIAN New Delhi, March 22 HE HAD ALWAYS hero-worshipped Nani Palkhiwala and inspiredbyLouisNizer’sMyLife in Court, pursued a master’s degree in law. In college, he would stage mock trials of his professors on Annual Days.But it was the early seventies and given his family’s financial circumstances — and the time it would take to establish himself asalawyer—BharatDoshisoon found himself in the corporate world.Doshi would have surely have become a top advocate givenhelovedspeakinginpublic and played a leading role in theatre performances in school and at Sydenham College. But old-timers at Mahindra and Mahindra (M&M), wherehespentfour decades managing itsfinances,sayhewasneverthe argumentative kind. Sure, he loved a good debate and made his point forcefully but his was alwaysabalancedandconsiderateview.Andthat’sprobablywhy he was able to negotiate so skilfully with workers and labour unions in the early 2000s winningthemoverwithhisgenuine concern for the older workers. EveryoneatM&MmissesDoshi, amanwhomentoredmanygenerations even as he learnt from them.It was his ability to communicate with people that endearedhimtothem. In his later years, as he discovered Kabir, Doshi would realise that itwas the simplicity of the message that gives it its strength and makes people reflect. Over the last several years Doshi has spent a lot of time understanding Kabir, listeningtoPrahaladTipania,who he says is like a guru.“Shabd ki chotlagtihai”,hesaysexplaining the effect that Kabir’s couplets can have on one. For all his love of philosophy, Doshi was a hard-nosed professional during his M&M days playing a key role during theacquisitionsofPunjabTractors in 2007, Satyam in 2009 andSsangYongin2010.Thejob was a challenging one and becameevenmorechallenging as M&M turned into a conglomerate branching out into several new fields, no longer the auto and tractormanufacturerit used to be. The balance sheet expanded multifold but with Doshi around, capital was always used efficiently,borrowings were never out of syncwith the equityand the costs were always in check. His role,in a company that was cashinginontheopportunities in a growing economy, was clearly more than that of a CFO’s and he played it beautifullyboth complementing and supplementing the efforts of the others in the top team. As he says, the CFO is much like a juggler trying to handle multiple jobs together and he retiredasexecutivedirectorand group CFO. Details on Page 11 Continued on Page 2 DATA SCANDAL Zuckerberg says sorry for Facebook’s mistakes, promises curbs REUTERS San Francisco, March 22 FACEBOOK CHIEF EXECUTIVE Mark Zuckerberg apologised on Wednesday for mistakes his company made in howit handled data belonging to 50 million of its users and promised tougher steps to restrict developers’ access to such information. The world’s largest social media network is facing growing government scrutiny in Europe and the US about a whistleblower’s allegations that London-based political consultancy Cambridge Analytica improperly accessed user information to build profiles on American voters that were later used to help elect US President Donald Trump in 2016. “This was a major breach oftrust.I’mreallysorrythishappened.We have a basic responsibilitytoprotectpeople’sdata,” Zuckerberg said in an interview with CNN, breaking a public silence since the scandal erupted at theweekend. Zuckerberg said in a post on ILLUSTRATION: ROHNIT PHORE Facebook the company“made mistakes,there’smoretodo,and we need to step up and do it”. He said the social network planned to conduct an investigation of thousands of apps that have used Facebook’s platform, restrict developer access to data, and give membersatoolthatletsthemtodisable access to their Facebook data more easily. His plans did not represent a big reduction of advertisers’ ability to use Facebook data, which is the company’s lifeblood. Zuckerberg said he was open to additional government regulation and happy to testify before the US Congress if he was the right person. “I’m not sure we shouldn’t be regulated,” he told CNN. “Iactuallythinkthequestionis more what is the right regulation rather than yes or no, should it be regulated? ... People should know who is buying the ads that they see on Facebook.” Zuckerberg said Facebook was committed to stopping interference in the US midtermelectioninNovemberand elections in India and Brazil. Continued on Page 2 Facebook enhancing security ahead of India polls, P18
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