OPINION, P8 MONEY & MARKETS, P11 EDITORIAL NCLT gets a boost with SC ruling loan waivers not taxable INTERNATIONAL, P14 ARVIND SINGHAL SWEEPING CHANGES TRADE WARS Walmart deal sign of FDI potential in retail sector which govt is not really attracting Tyagi-led Sebi splits CMD post, ups minimum board strength to six Yin-led ZTE halts major operations after US export ban NEW DELHI, FRIDAY, MAY 11, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 60, 24 PAGES, `6.00 (PATNA `6.00, RAIPUR `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: 35,246.27 ▼ 73.08 NIFTY: 10,716.55 ▼ 25.15 NIKKEI 225: 22,497.18 ▲ 88.30 HANG SENG: 30,809.22 ▲ 273.08 `/$: 67.32 ▼ 0.04 `/€: 80.03 ▼ 0.09 BRENT: $76.86 ▼ $0.35 GOLD: `31,261.00 ▲ `118.00 BID FOR ESSAR STEEL ● TELECOM M&As Numetal moves NCLAT against CoC IN THE NEWS Aadhaar: Apex court reserves judgment THE SUPREME COURT on Thursday reserved its verdict on a batch of petitions challenging the constitutional validity of Aadhaar and its enabling 2016 law, reports PTI. A fivejudge constitution bench headed by Chief Justice Dipak Misra directed all the parties concerned to file their written submissions to put forth their case. The judgment was reserved after a marathon hearing which went on for 38 days spanning four months. Panel interviews 9 for RBI deputy governor post A PANEL headed by Cabinet secretary PK Sinha on Thursday interviewed three senior bureaucrats and six bankers for the post of RBI deputy governor (DG), which fell vacant in July 2017 after SS Mundra retired on completion of his three-year term, reports PTI. Some of the bankers who appeared for the interview included IDBI Bank managing director MK Jain, UCO Bank executive director Charan Singh and SBI MDs B Sriram and PK Gupta. Idea-Voda merger on fast track: Secretary RISHI RANJAN KALA New Delhi, May 10 CoC had held Numetal needs to repay the existing debt to be considered eligible FE BUREAU Mumbai, May 10 NUMETAL ON THURSDAY moved the National Company Law Appellate Tribunal (NCLAT) against the decision of committee of creditors (CoC) of Essar Steel that it needs to repay the existing debt of the steel firm before it is considered eligible to bid for its assets. This is the second petition filed by the company in the NCLAT since the Ahmedabad bench of the National Company Law Tribunal (NCLT) passed its order onApril 19.In its first petition before the appellate tribunal, Numetal has challenged the NCLT’s April orderwhich had directed Essar Steel’s CoC and resolution professional (RP) to reconsider the first set of bids received from Numetal and ArcelorMittal, granting an additional 30 days for the res- HEAVY METAL ■ Numetal first moved NCLAT against NCLT Ahmedabad Apr order ■ Arcelor too moved NCLAT challenging disqualification of its bid ■ RP asked Numetal, Arcelor to repay all dues to become eligible olution process.The NCLThad suggested that the two bidders be allowed an opportunity to rectify their bids to make them eligible. Continued on Page 2 SC: Consider UltraTech’s revised bid for Binani THE SUPREME COURT on Thursday allowed Binani Cement’sresolutionprofessional and committee of creditorstoconsiderUltraTech Cement’s revised bid, report Indu Bhan and Mithun Dasgupta in New Delhi and Kolkata. How- Shah’s last-day show BJP president Amit Shah waves to the crowd in Badami on the last day of campaigning for the Karnataka assembly polls on Thursday ■ NCLT asked RP, CoC to reconsider first set of bids by the two bidders ever, the lenders’ meet scheduled for the day was cancelled after Dalmia Bharat said UltraTech was ineligible under Section 29A of the Insolvency and Bankruptcy Code. Details on Page 6 US SANCTIONS ON IRAN India may revive rupee-rial trade Could help sidestep embargo and maintain renewed pace of bilateral shipments BANIKINKAR PATTANAYAK New Delhi, May 10 INDIA COULD REVIVE a rupee-rial payment arrangement with Iran to bail out exporters from the heat of US sanctions that have cast a shadow over any plan to further boost trade with the Islamic nation, exports to which had reversed a threeyear slide in 2017-18, trade sources told FE on Thursday. Around 2011-12, a rupeerialmechanismwasputinplace whereupto45%ofIndia’spurchasesofIraniancrudecouldbe ‘UNDER-STATED SUPPORT’ QuickPicks Jaypee offers 2k shares to buyers JAYPEE GROUP has offered 2,000 equity shares of Jaypee Infratech for free to each homebuyer as part of its `10,000-crore proposal to revive the bankruptcy-hit real estate firm, sources told PTI. Earlier this week, Jaypee group promoter Manoj Gaur made an offer of over `10,000 crore to the lenders of Jaypee Infratech to protect the interest of all stakeholders, including financial creditors, homebuyers and minority shareholders. PAGE 5 Commercial vehicle sales up 76% THE AUTO sector started the new fiscal year on a good note with a whopping 76% growth in the sale of commercial vehicles during April, report fe Bureaus in New Delhi/Mumbai. According to data released by the Society of Indian Automobile Manufacturers (Siam) on Thursday, a total of 72,993 CVs were sold in April, though on a low base a year ago. The CV segment was most hit by disruption in fuel emission standards. PAGE 4 Suzuki focus on R&D for India SUZUKI MOTOR on Thursday said it would earmark record investment this year for research and development (R&D) into technologies such as electric vehicles as it defends it dominance in its biggest market, India, reports Reuters. Higher R&D costs and a stronger yen will push operating profit down 9.1% in the current financial year at Japan’s fourth-biggest automaker, offsetting record global vehicle sales. PAGE 5 India, US in another WTO tiff, on grain FE BUREAU New Delhi, May 10 INDIA HAS UNDERREPORTED the massive support it offers to its wheat and paddy farmers to the World Trade Organisation (WTO) and its sops far exceed the permissible limit, the US has told the multilateral body. India had notified to the WTO market price support (MPS) of `12,001.6 crore for rice in 2013-14, which amounts to 5.45% of the value of production,while the US has claimed that the apparent support was as much as `1,78,018.5 crore,or 76.9% of output value. Similarly, in the case of wheat, while India had notified the MPS of `4,947.8 crore in 2013-14, or 3.53% of the WHATTHE US SAYS ■ India’s apparent market price support (MPS) for wheat has been over 60% of output value in each of four years through 2013-14 ■ Its apparent MPS for rice has been in 74-84.2% range in these years ■ MPS in excess of 10% of output value violates WTO rules value of production, the US calculations suggest the apparent support actually stood at `96,497.3 crore, or 65.3% of output value. Continued on Page 2 FLIPKART DEAL I-T writes to Walmart on tax; ‘will comply’, says firm SUMIT JHA New Delhi, May 10 THE INCOME TAX (I-T) department wrote to USbased retailer Walmart earlier this week apprising it ■ Section 195 of I-TAct casts TDS obligations on payments to a non-resident ■ Letter to US retail giant also mentions Section 9 (1) concerning indirect transfer of Indian assets ■ Tax liability to become clear after structure of acquisition is known to us, says I-T official of the relevant Indian tax laws in the context of its $16-billion acquisition of a 77% stake in Indian ecommerce player Flipkart (the deal was announced on Wednesday), including the need to withhold taxes on the capital gains accrued to the sellers, joint secretary at foreign tax department Akhilesh Ranjan said. “We wrote to them on May 8 and have told them about the relevant due diligence required under the law. We have also told them that they could approach us for determination of CLEAR CALLING WITHTHE SUPREME COURT making it clear that the government cannot insist that telecom companies undergoing merger and acquisition need to pay the one-time spectrum charge (OTSC) levied on them, the telecom department on Thursday said that the Bharti-Telenor deal will be approved in less than a month’s time and that the Idea-Vodafone merger will also be expedited so that it can be completed by June, the time frame set by the companies. Telecom secretary Aruna Sundararajan said she did not foresee any hurdles in the clearances pertaining to the Vodafone-Idea merger and it withholding tax under Section 195 of I-T Act,” Ranjan told FE. Walmart said it will comply with any tax demand arising from its purchase of Flipkart stake, Bloomberg reported. “Our intent is, whether looking backwards related to our acquisition here or looking forward, we will be compliant with whatever the tax rules are,” the agency quoted Walmart chief executive officer Doug McMillon telling reporters here. Continued on Page 2 effected in rupees in exchange for items like rice, wheat and medicines that were not sanctioned bythe UN. Exports to Iran could witness a hitch if the US and its allies go ahead with sanctions, although such payment issues could be sorted out fast this time around due to previous experience of handling such crisis, restoring the flow of trade,said the sources.But the sanctionshavepotentialtoput a lid on growth in India’s exports to Iran. Continued on Page 2 ■ DoT not to file review petition after Supreme Court rejected its plea in Bharti-Telenor case ■ Now, DoT’s M&A policy on OTSC will not apply in such cases ■ With no hurdles foreseen, VodafoneIdea merger to be approved by target date of June “should get done”bythe target date of June outlined by the two companies. Continued on Page 2 Special Feature Exports to Iran rose after a 3-year fall ($ bn) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 4.97 4.18 2.78 2013-14 Source: DGCIS 2015-16 Brent 80.00 75.00 69.65 2.38 2.60 2017-18* *Provisional Oil trades at highest level since Nov 2014, up over 15% this year ($/bbl) 77.21 70.00 65.00 60.00 55.00 Feb 1, 2018 Source: Bloomberg May 10, 2018 Sikhs are taking over trucking in America There are about 150,000 Sikhs in trucking in the US, 90% of whom are drivers. Those numbers are growing rapidly, with 18,000 Sikhs entering the industry in 2017 alone ■ Motobahn, P13
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