OPINION, P8 COMPANIES, P7 PAY ISSUE EDITORIAL India finally free to love anyone as SC reads down Sec 377 ARCs won’t help stressed gencos recover, govt must help them get PPAs COMPANIES, P7 BHUSHAN POWER AND STEEL Goyal-led Jet receives over 100 pilot resignations since Aug TV Narendran-led Tata Steel says CoC went against NCLAT order NEW DELHI, FRIDAY, SEPTEMBER 7, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 162, 26 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: 38,242.81 ▲ 224.50 NIFTY: 11,536.90 ▲ 59.95 NIKKEI 225: 22,487.94 ▼ 92.89 HANG SENG: 26,974.82 ▼ 269.03 `/$: 71.99 ▼ 0.23 `/€: 83.70 ▼ 0.59 BRENT: $77.48 ▲ 0.21 GOLD: `30,535 ▲ `261 ● SINGH BROTHERS NCLT orders status quo on dispute SURYA SARATHI RAY New Delhi, September 6 IN THE NEWS Telangana Cabinet dissolves assembly US defence secretary James Mattis, US secretary of state Mike Pompeo, foreign minister Sushma Swaraj and defence minister Nirmala Sitharaman in New Delhi on Thursday 2+2 DIALOGUE IN A major political development, Telangana chief minister K Chandrasekhar Rao's Cabinet has set the stage for early polls and has dissolved the legislative assembly, reports in fe Bureau in Hyderabad. The state government also issued a government order authorising the the chief minister and his ministers to continue as a ‘caretaker government' of Telangana. India gets wider access to US military tech FE BUREAU New Delhi, September 6 AMID LINGERING TENSIONS in bilateral trade relations and Washington’s unease with India’s decision to go ahead with the purchase of Russia’s S-400 Triumf surface-to-air missile system, India and the US on Thursday inked a long-negotiated pact, under which critical and encrypted defence technolo- Special Features ‘We are learning our way around regional sports’ Star Sports' Gautam Thakar talks about the company’s plans in the India market, the need to proliferate sports beyond cricket, and more ■ BrandWagon, P13 QuickPicks Temasek to invest up to $400 million in NIIF The National Investment and Infrastructure Fund (NIIF) on Thursday said that Singapore-based global investment firm Temasek has agreed to invest up to $400 million, or `2,750 crore, in its master fund, reports fe Bureau in Mumbai. NIIF’s MD and CEO Sujoy Bose said the master fund is targeting to raise `14,000 crore to invest in core infrastructure sectors with a focus on transportation, energy and urban infrastructure. PAGE 2 ONGC stake sale: Govt may clarify on subsidy-sharing AHEAD OF its proposed 5% stake sale in ONGC via the offer for sale (OFS) route, the government may clarify to investors that it won't reimpose the burden of subsidy-sharing on the state-run explorer, reports Saurabh Kumar and Prasanta Sahu in New Delhi. Such a clarification, besides assuring potential investors, could fetch the government more revenue from the OFS than the estimated `11,200 crore at the current market prices, an official said. The ONGC OFS is crucial for the government to achieve this fiscal's ambitious disinvestment target of `80,000 crore. PAGE 6 Monetary limit for filing cases in DRT doubled to `20 lakh THE GOVERNMENT on Thursday doubled the pecuniary limit to `20 lakh for filing loan recovery application in the debt recovery tribunals (DRT) by banks and financial institutions, reports PTI. The move is aimed at helping to reduce the pendency of cases in DRTs. There are 39 DRTs in the country. To facilitate fast disposal of debt recovery cases, the government has made several amendments in different laws. PAGE 15 2016 AN INVESTMENT arm of Japan’s Mitsubishi Corporation has signed definitive agreements with South India-based Shriram Properties for partnership in an ongoing large residential development project in Chennai, which will see an investment of close to `180 crore from the former, reports fe Bureau in Chennai. This marks Mitsubishi’s entry into the Indian real estate sector. JULY: $1-billion deal for 4 extra P8I long-range maritime surveillance & anti-submarine warfare aircraft DECEMBER: Delhi to buy 145 M-777 Ultra-Light Howitzers worth $750 million 2017 Mitsubishi to invest `180 cr in Chennai project Recent India-US defence deals JUNE: $2-3 billion deal for unmanned Guardian drones 2018 Despite trade tensions, both sides sign COMCASA,‘to work together for Delhi’s entry into NSG’; India flags H1B visa issue JUNE: 6 AH-64EApache attack helicopters/support equipment to India for $930 million gies will be provided to the former’s military by the Americans. As the two countries held their first ‘2+2 dialogue’ here, several other key ● CASE FILE issues including cross-border terrorism, India’s NSG bid and the contentious curbs on H1B visas came into focus. While US secretary of state Michael R Pompeo termed the Communications, Compatibility, Security Agreement (COMCASA) a ‘milestone’, Indian defence minister Nirmala Sitharaman asserted that the pact would enhance the country’s defence capability and preparedness. COMCASAwill also allowthe installation of high-security US communication equipment on defence platforms being sourced by India. Also, a hotline is being set up between Swaraj and Sitharaman and their US counterparts. Continued on Page 2 Waivers likely for Iranian oil buyers such as India: P12 THE NATIONAL COMPANY Law Tribunal (NCLT) on ThursdayissuednoticestoMalvinder Singh, ex-Religare chief Sunil Godhwani and others,and also directed that status quo be maintainedovertheshareholdings and composition of the RHC Holdings board till it decides on the plea of younger brother Shivinder Singh, alleging oppression and mismanagement of RHC Holdings. The tribunal also allowed both parties, Shivinder Singh and his wife Aditi Singh, and other party Malvinder Singh to inspect documents and take photocopies of the records of RHC Holdings. The tribunal also directed Malvinder Singh and other respondents to file their replies within 10 days and sought rejoinder from Shivinder Singh in twoweeks. The matter will next come up forhearing on October9. ShivinderSingh,whoisaformer promoter of Fortis Healthcare,hadmovedNCLTtoremove his elder brother Malvinder from the board of RHC Holdings,allegingblatantactsofmismanagement by him and also asked to reconstitute the board of the company.He has alleged illegal and unlawful manipulationofrecordsofRHCHoldings includingtheforgingofthesignature of his wife Aditi Singh, whileaskingtheNCLTtodeclare that Malvinder and ex-Religare chief Sunil Godhwani caused graveprejudicetotheinterestof the companybyacting in collusionwith each other. CELEBRATORY RULING Gay sex legal, says SC; British-era law scrapped ‘Discrimination on the basis of sexuality amounts to violation of fundamental rights’ Section 377, IPC is irrational , indefensible and arbitrary. The majoritarian views and popular morality cannot dictate constitutional rights FE BUREAU New Delhi, September 6 History owes apology to LGBTQ community for denying them right and compelling them to live life of fear IN A HISTORIC judgement,the Supreme Court on Thursday scrapped a controversial colonial-era ban on gay sex and declared that such sex among consenting adults is no longera criminal offence. The verdict that heralded a new dawn for personallibertyisbeingcheered by millions across the country, farbeyond the gaycommunity. Overruling its own controversial 2013 decision in the Suresh Kaushal case which had re-criminalised “consensual unnaturalsex”,afive-judgeConstitution Bench unanimously, but in four separate concurring judgments, partially struck down Section 377, a 158-yearold British-era law that criminalised gay sex and thereby impinged on the constitutional right to equalityand dignity. The ban is irrational, indefensible and manifestly arbi- — CHIEF JUSTICE DIPAK MISRA — JUSTICE INDU MALHOTRA The LGBTQ community should not live in shadows and not in the basement of a nightclub. We hope to have representation in Parliament and in the SC someday — HOTELIER KESHAV SURI trary,thejudgessaid.“Takemeas Iam,”ChiefJusticeofIndiaDipak Misra said, encapsulating the verdict.“Wehavetobidadieuto prejudices and empowerall citizens.Anydiscriminationonthe basis of sexuality amounts to a violationoffundamentalrights,” he said.Delivering a 493-page judgement, the top court said, “Moralitycannotbemartyredat the altar of social morality and onlyconstitutionalmoralitycan beallowedundertheruleoflaw,” while also holding that Section 377 was used as a weapon to harass the members of the lesbian,gay,bisexual,transgender andqueer(LGBTQ)community, resulting in discrimination. Continued on Page 2 Continued on Page 2 $900-M DEAL NCLAT order on Essar Steel bids today Aurobindo to buy Sandoz US units FE BUREAU New Delhi, September 6 AUROBINDO PHARMAsaidon Thursday it was acquiring a dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure intheUSfromSandozInc,USA, a Novartis division, for $900 million in an all-cash deal.The transaction positions THE NATIONAL Company Law AppellateTribunal (NCLAT)will onFridaydeliveritsorderonthe eligibility of ArcelorMittal and Numetal, the two key contenders, for bankrupt Essar Steel.Boththefirmshadmoved theappellatetribunalchallenging their disqualification in the firstroundofbidsbytheresolution professional. ArcelorMittal’s first bid for Essar Steel was disqualified by theRPonthegroundthatitwas a promoter of Uttam Galva and KSS Petron,both of which have defaulted on loans. Numetal’s bidwasdisqualifiedsinceoneof the persons associatedwith the firm,Rewant Ruia,is related to the promoters of EssarSteel. Continued on Page 2 FE BUREAU Hyderabad, September 6 Aurobindo Pharma Intra-day on BSE (`), Sept 6 780 759.55 760 740 720 700 704.90 680 660 Open Prev. close: 696.10 Close Aurobindo as the second largest dermatology and largestgenericscompanyinthe US byprescriptions.The nearly 300productswillcomplement its portfolio. In a statement, the company said the cash transaction would be financed through a fully- committed debt facility. N Govindarajan, MD, said the acquisitionwasinlinewiththe firm’s strategy to grow and diversifythebusinessintheUS. “This will allow us to further expand our product offering and to become a leading player in the generic dermatology market,”Govindrajan said. The acquired generic dermatology portfolio covers topical antibiotics,gynaecological anddermatologicalantifungal agents, anti-acne agents, local anaesthetic analgesics, antiitch, and a dermatological chemotherapeutic agent. Members of the LGBTcommunity celebrate after the Supreme Court struck down a colonial-era law that made homosexual acts punishable by up to 10 years in prison, in Bengaluru onThursday Fall continues FE BUREAU Rupee breaches 72 mark The rupee on Thursday fell to yet another record low of 72.11 in intra-day trade before settling at a fresh closing low of 71.98. The yield on the benchmark bond went up to 8.08% in intra-day trade, but made a mild recovery to close at 8.05% `/$ 10-year bond yield (%) 60 8.3 63 63.675 8.0 71.988 66 69 8.056 7.7 7.4 72 75 7.337 7.1 Inverted scale Jan 1, 2018 Sept 6, 2018 6.8 Jan 1, 2018 Sept 6, 2018 Continued on Page 2 COMPETITIVE MOVE Temasek picks up stake in Ola parent firm for $200 million ANUSHREE BHATTACHARYYA New Delhi, September 6 WITH SINGAPORE’S TEMASEKpickingupastakein ANITechnologies — the parent companyof taxi-hailing application Ola — for $200 million, the business is now valued at $3.5 billion, persons familiar with the transaction said. A regulatory filing with the Registrar of Companies (RoC) said the “Proposed Combination pertains to the indirect acquisition of less than 10% of the share capital of ANI by Ankit Bhati,Bhavish Aggarwal and MacRitchie through Lazarus from certain existing shareholders of ANI….” The documents were retrieved by Paper.vc,a data analytics firm. Aggarwal and Bhati are cofoundersofthetaxiserviceand in July owned 7.15% and 3.64%ofthecompany,respectively.Olawasvaluedatcloseto $3.9 billion in July 2018, according to Paper.vc. The shares have reportedly been bought from a group of investors who bet on the taxi service in its early days.In July, Japan’s SoftBank held 26.1% ■ Shares have been bought from a group of investors who bet on the taxi service in its early days In July, SoftBank held 26.1%, Tiger Global 15.9% & Tencent 10.3% in Ola ■ Bhavish Aggarwal & Ankit Bhati, cofounders, owned 7.15% and 3.64% ■ Ola’s losses widened to `4,897.8 crore in FY17, while the total income grew 70% to `1,380.7 crore ■ while Tiger Global had a stake of 15.9%. The Chinese firm Tencent had a shareholding of10.3%. Ola’s losses widened to `4,897.8 crore in 2016-17 while the total income grew 70% to `1,380.7 crore. In the previous year, the company’s income was `810.7 crore. The company had cash and bank balances of approximately `3,000 crore. In the Indian market, Ola competes with Uber and while earlier Uber was believed to be the market leader, persons familiar with industry trends said that now Ola commanded a share of more than 60%.Ola’s strategy,expertssaid,ofoffering arangeofofferings—including two-wheeler, e-rickshaw and auto rides — has paid off. The service also includes outstation journeys.Ithasover9lakhvehicles and operates in 115 cities. According to Redseer Consulting, between December 2016 and December2017,the number of daily rides on taxihailing applications increased by 50% from 1.37 million to 2.03 million.The share of pool rides went up by 27% during this period.
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