OPINION, P8 COMPANIES, P4 CAPITAL INFUSION EDITORIAL Don’t petition RBI, fix fuel linkages & get SEBs to sign PPAs Delhi govt plan to put profit caps on pvt hospitals will only make things worse INTERNATIONAL, P14 MEGA PHARMA ACQUISITION Amazon India gets `2,600 crore of fresh funds from US parent Weber-led Takeda clinches $62-bn deal to buy drugmaker Shire MUMBAI, WEDNESDAY, MAY 9, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 353, 16 PAGES, `7.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 35,216.32 ▲ 8.18 NIFTY: 10,717.80 ▲ 2.30 NIKKEI 225: 22,508.69 ▲ 41.53 HANG SENG: 30,402.81 ▲ 408.55 `/$: 67.08 ▲ 0.06 `/€: 79.60 ▲ 0.39 BRENT: $75.69 ▼ $0.48 GOLD: `31,082.00 ▼ `109.00 FRAUD ALERT EXPRESS PHOTO: PRADEEP KUMAR Mallya loses $1.6 bn in UK lawsuit ● VIDEOCON LOAN No action till probe report on Chanda Kochhar FE BUREAU New Delhi, May 8 THE GOVERNMENT WILL act swiftlyintheICICIBank-Videoconloancaseifreportsofinvestigative agencies indict the bank’s management and it is waiting forthe probe reports to haveaclearerview,aseniorofficial said onTuesday. The government nominee on the ICICI Bank board —who hasn’t been attending the board meetings after the controversyflaredupinlateMarch — will mark his presence once investigators give a clean chit to the board,said the official. Lok Ranjan, a joint secretary in the department of financial services, last month replaced Amit Agrawal as the government’s nominee director on the bank’s board. ICICI Bank on Monday announced its results for the fourth quarter of 2017-18. Continued on Page 2 RBI’s dirty dozen now all in NCLT Era owes banks little over `10,000 cr; CBI booked UCO Bank ex-CMD in `621-cr fraud SURYA SARATHI RAY New Delhi, May 8 Indian banks including IDBI Bank can now enforce court ruling pertaining to wilful default by Kingfisher Airlines BLOOMBERG London, May 8 INDIAN TYCOON VIJAY MALLYA lost a UK lawsuit filed by Indian banks seeking to collectmorethan£1.15billion ($1.55 billion) amid allegations that he committed massive fraud. Judge Andrew Henshaw in London on Tuesday said the lenders, including IDBI Bank, can enforce an Indian court ruling that relates to allegations that Mallya wilfully defaultedonabout$1.4billion SETBACK: Vijay Mallya in debt for his now-defunct Kingfisher Airlines. Henshaw also refused to overturn a worldwide order freezing Mallya’s assets. The 62-year-old is fighting numerous lawsuits in the UK and India over fraud and money-launderingallegations. He was arrested in London more than a year ago and is waging another fight to block extradition in a different court about three miles across town. Lawyers for Mallya declined to comment afterthe hearing.Henshawrefused permission to appeal against Tuesday’s ruling, meaning his attorneys will have to directly petition the Court of Appeal. Attorneys at lawfirmTLTin London,who are representing the lenders,said the rulingwill allow them to enforce the underlying judgment by the Indian debt recovery tribunal immediately. The asset freeze order had forced Mallya to live on £5,000 a week, but his allowance was increased to roughly £20,000 a week earlier this year, lawyers for the lenders said after the hearing. Continued on Page 2 ■ Related reports on Page 6 White summer People walk on a road after a heavy hailstorm in Shimla on Tuesday. Rains lashed mid and lower hills of Himachal Pradesh while the state’s higher reaches received snowfall BID FOR BINANI Dalmia Bharat moves SC against NCLT nod to UltraTech’s new bid MITHUN DASGUPTA Kolkata, May 8 THE BATTLE FOR Binani Cement took another turn on Tuesday with Dalmia Bharat moving the Supreme Court (SC), asking it to overturn the National Company Law Tribunal’s (NCLT) order which allowed UltraTech’s revised offer to be considered. The appeal is expected to be mentioned in the apex court on Wednesday and heard on Thursday,sources said. Last week the National Company Law Appellate Tribunal (NCLAT) had refused to stay an order by NCLT, which Special Feature Oil on the boil Why ELSS is the long-time winner compared to PPF Way past the danger-mark Equity Linked Savings Scheme (ELSS) gives much higher returns on investment due to the power of compounding despite the market volatility it entails ■ Personal Finance, P13 QuickPicks 9th CGD auction: Govt expects `70,000-crore investment THE NINTH licensing round of city gas distribution (CGD) is likely to attract investments of around `70,000 crore with 86 geographical areas (GAs) put on offer, according to the government, reports fe Bureau in New Delhi. The 86 GAs in the new round will cover 24% of India’s area and 29% of the population. In other words, they cover 174 districts across 22 states and Union Territories. Currently, 91 GAs with 24% of the population have piped natural gas facility. PAGE 2 Solar power plant EPC contracts to attract 18% GST, says AAR IN A RULING that could spike the cost of setting up solar power plants, the Authority for Advance Ruling (AAR) for GST in Maharashtra has said engineering, procurement and construction (EPC) activities will be considered as ‘work contract’ and liable to be taxed at 18%, reports fe Bureau in New Delhi. The petitioner had argued that these should be considered as ‘composite supply’, which would attract a concessional GST of 5% for solar power generation stations. PAGE 2 After GST, bank blues, UN sees gradual recovery for India INDIA’S ECONOMIC growth was pushed downward in 2017 due to the goods and services tax (GST) as well as protracted issues of corporate and bank balance sheet problems, according to a UN report, which further said the country is expected to recover gradually and grow at 7.2% in 2018, reports PTI. According to estimates in the UN Economic and Social Commission for Asia and the Pacific’s flagship publication the Economic and Social Survey ofAsia and the Pacific, India’s GDP grew at 6.6% in 2017, down from 7.1% in 2016. PAGE 3 BATTLE RAGES ON ■ NCLAT, last week, refused to stay NCLT order allowing UltraTech bid to be considered and listed case for hearing on May 22 ■ NCLT also offered Dal- mia Bharat-controlled Rajputana Properties chance to better its offer of `6,930 crore allowed Ultratech’s bid to be considered and had listed the case for hearing on May 22. Meanwhile, the committee of FE BUREAU 75.59 May 8, 2018 64.81 Feb 8, 2018 Brent ($/bbl) ● CALL CONNECT Trai now bats for the middle way THE FIGHTBETWEEN incumbent operators and Reliance Jio over points of interconnect (PoIs) — these points connect calls between two different networks — which ran full steam in the latter half of 2016, continues on the regulatory front. Back in 2016,mobile oper- creditors (CoC) is scheduled to meetonMay10to“takenoteof thedirectionsoftheorderofthe NCLT, Kolkata dated May 2, 2018” and “to consider the revisedofferalongwiththeresolution plan of UltraTech Cement”.TheSCdirectivecould have a bearing on the lender’s decisiontoconsiderUltratech’s bid forthe cement company. While the NCLT had allowed Ultratech’s revised bid to be considered, it had also offered Dalmia Bharat-controlled Rajputana Properties (RPPL) a chance to better its offer of `6,930 crore. THE NATIONAL COMPANY Law Tribunal (NCLT) on Tuesday ordered the initiation of the corporate insolvency resolution process for Era Infra &Engineering under section 7 of the Insolvency and Bankruptcy Code (IBC). The debtridden realty firm,which owes lenders a little over `10,000 crore,was referred to the NCLT by Union Bank of India. The company is promoted by Delhi-based industrialist Hem Singh Bhurana. PTI reported on April 14 that the CentralBureauofInvestigation (CBI) had booked formerchairman and managing director of UcoBankArunKaulandothers in connection with an alleged `621-crore loan fraud which causedalossofover`737crore to the bank. Besides Kaul, the CBI booked Bhurana and two chartered accounts among others.Kaul,whowas the CMD of the Kolkata-headquartered bank, allegedly facilitated the accused company in obtaining the loan. With Era being admitted under the IBC, the top 12 troubled companies, identified by the Reserve Bank of India (RBI) in June last year, are now in various stages of the resolution process. CLSA estimates these companies account for about `2.77 lakh crore in bad loans. Continued on Page 2 Union Bank of India classified Era Infra's account as NPA July 22, 2015 RBI directs lenders to refer 12 firms to NCLT for insolvency proceedings, including that of Era Infra June 13, 2017 Joint lenders' forum decided to file appeal in NCLT under IBC, 2016 June 17 Matter listed for first hearing in NCLT July 5 July 11 NCLT decides insolvency proceedings can be triggered if winding-up petitions are not admitted Feb 16, 2018 May 8 Continued on Page 2 Era's counsel placed on record the list of pending winding-up petitions NCLT admits insolvency petition against Era Infra NCLT ● HC RULING ators were required to provide PoIs to each other on demand within a period of 90 days.The Telecom RegulatoryAuthority of India reduced the span to 21 days in February this year. When the incumbents protested that this is too short a period, the Trai on Tuesday came out with a fresh draft which suggests that PoIs should be provided within a period of 42 days. The regulation will be finalised after the regulator receives inputs from the stakeholders. The matter of PoIs, how much is to be given and within what time-frame had become a major flashpoint post-September 2016 when Reliance Jio had launched its services. Continued on Page 2 Tata Steel appeals against Liberty bid Partial sale of assets in Daiichi case SURYA SARATHI RAY New Delhi, May 8 Prices have risen by over $10 per barrel in the last three months — the US stance on Iran is critical now FE BUREAU New Delhi, May 8 ERA INFRA FE BUREAU New Delhi, May 8 TATA STEEL ON Tuesday moved the National Company Law Appellate Tribunal (NCLAT) challenging an April 23 order of the National Company Law Tribunal which directed the committee of creditors (CoC) to consider the late bid submitted by UKbased Liberty House for Bhushan Power and Steel. NCLAThaslistedthematterfor hearing on Wednesday. Apart from Tata Steel, JSW Steel was the only bidder which had submitted a bid for the loss-making steelmaker before the deadline ended on February 8. Liberty House placed its bid for the company only on February 20 and the resolution professional Mahender Khandelwal had rejected it on the ground it had been submitted after the deadline. Liberty House challenged the RP’s decision taking the matter to the Principal CASE FILES ■ Liberty House placed Bench of NCLT,NewDelhi.The NCLT observed the bid by Liberty House could not be disqualified only on the grounds it had been submitted after the deadline. While Tata Steel had offered to make an upfront payment of `17,000 crore to the lenders, way better than JSW Steel’s offer of an upfront payment of `11,000 crore. THE DELHI HIGH COURT on Tuesday allowed the sale of unencumbered shares of the firms of former promoters of Ranbaxy Laboratories in listed companiestorepaythe`3,500crore arbitration award in favour of Japanese pharma majorDaiichiSankyo.However, this would not apply to shares held by Malvinder Singh as there is a stay granted by the Delhi Debt Recovery Tribunal onthesaleofhisunencumbered assets in a separate case by Yes Bank.It is seeking to recover its `565-crore loan given to Oscar Investment for which Malvinder was a guarantor.The court also issued a notice toYes Bank. Justice Jayant Nath also directed the debtors to fully cooperate with the chartered accountant,whowasappointed a local commissioner in the matter,tosellthesesharesatthe stock exchange. Continued on Page 2 Continued on Page 2 its bid for the company only on February 20 ■ RP had rejected the bid; this was challenged by Liberty House in NCLT, which directed the CoC to consider the bid ■ NCLAT has listed the matter for hearing on Wednesday TAKING A BRAKE Maruti to ‘inspect’ 52,686 units of new Swift, Baleno FE BUREAU New Delhi, May 8 MARUTI SUZUKI ON Tuesday said that it is undertaking a service campaign to inspect 52,686 units of its new Swift and Baleno,both hugelypopular cars, for a possible fault in the brake vacuum hose. The units manufactured between December 1, 2017 and March 16,2018will be covered under the campaign. In popular parlance this is kind of a recall but Maruti has notcalleditsuchbecausetechnically in a recall, free of cost repairof the faultypart is done by the company which otherwise is a security risk. In the currentcasethere’snosecurity risk, just that the brake gets a bit hard if continuously applied in a short span of time. It does not in any way impact the braking system in terms of its functioning,company officials said. Service campaigns are undertaken globally by BRAKE JOURNEY NEW SWIFT 44,982 automobile companies to rectifyfaults that maypotentially cause inconvenience to cus- BALENO 7,704 tomers,thecompanysaid.Customers will be contacted by dealers for inspection and replacement of the faultypart, it added.“The inspection and replacement will be done free of cost for the customer”. A total of 44,982 units of newSwift,whichwaslaunched in February this year, and 7,704 units of Baleno are covered under the service campaign.Boththecarsarebuilton the same platform and have a common architecture. They both have high demand and have waiting period running into several weeks. Whilethere’snoofficialpolicy framed by the government onrecall,manufacturersfollow a voluntary recall policy adopted by their industry body Society of Indian Automobile Manufacturers(Siam).Underit, if any company detects that its products suffer from any manufacturing defect which can be asafetyhazard,theyvoluntarily contact the customers and rectifythe problem free of cost. Continued on Page 2
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