OPINION, P6 ECONOMY, P3 PNB FRAUD UPA pushing Centre to cut oil taxes is playing with fire As Kerala shows, we have a new flooddrought reality, and aren't ready for it UK GOVT NOTICE SFIO finds 3 Nirav firms got `6,498-cr LoUs issued unauthorisedly EDITORIAL INTERNATIONAL, P8 ‘No-deal’ Brexit would complicate driving, data and roaming NEW DELHI, FRIDAY, SEPTEMBER 14, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 168, 16 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 SIGNALLING A TRUCE IN THE NEWS New CJI Ranjan Gogoi to take oath on Oct 3 Shivinder withdraws plea against brother JUSTICE RANJAN Gogoi was on Thursday appointed the 46th Chief Justice of India, a law ministry notification said, reports PTI. He will take oath on October 3 after incumbent Dipak Misra retires. Gogoi's tenure will last till November 2019. President Ramnath Kovind signed warrants of appointment of Justice Gogoi following which a notification announcing his appointment was issued. FORMER FORTIS HEALTHCARE promoter Shivinder Mohan Singh,who had earlier this month moved the National Company Law Tribunal (NCLT) against his elder brother Malvinder Mohan Singh and ex-Religare chief Sunil Godhwani alleging blatant acts of mismanagement in RHC Holdings, on Thursday filed for permission to withdraw his original petition.The matterwill be heard on Friday. In his original petition, Shivinderhad alleged that collective and ongoing actions of his elder brother and Godhwani led to a systemic underminingoftheinterestsofcompanies and their shareholders. “I have applied towithdraw thepetitionbeforeNCLTthatis comingupforhearing,”Shivinder told PTI. “A mediation processhasbeenkickedoffand if it does not work, I have the option of refiling it,”he added. Shivinder’s application withdrawing his original petitionfromNCLTstatesthatpursuant to the filing of the original petition, his mother requested that both the broth- PSUS ARE scouting for discovered oil and gas fields in Russia as India looks to bolster energy ties with the resource-rich nation, petroleum minister Dharmendra Pradhan said Thursday, reports PTI. Indian PSUs have already invested $15 billion in picking up stakes in Russian oil and gas projects, he said at a conference. AI puts `350-cr properties up for re-auction AIR INDIA on Thursday put up for re-auction properties worth `350 crore across major cities after it failed to generate interest among buyers in the first instance when it had put them up in February, reports fe Bureau in New Delhi. There has been no change in the base price though. ‘At Swiggy, discounts are tactical, used selectively’ Swiggy’s Srivats TS speaks about its expansion to tier II cities, expectations from its membership programme, and more ■ BrandWagon, P9 Ulips, online distribution to drive growth in life insurance ` September 6 NCLTdirected that status quo be maintained in RHC Holdings September 13 Shivinder moved plea withdrawing his original petition ers engage in mediation led by familyeldersrespectedbyboth with a view to settling inter se issue between them. “That out of respect for their mother, the parties have already started mediation and as per the request of the mediators to constructively progress the mediation, the petitioners wish to withdraw the petition,without prejudice totheirrightsandcontentions. All rights of the petitioners are hereby reserved,” Shivinder said in his prayer,withdrawing the original petition. Sources said the fallout between the brothers had happenedmuchearlierandShivinder had quit his executive responsibilities and moved to Beasin2015.However,thearbitration award of `3,500 crore against them in the Daiichi Sankyo matter and the Fortis controversymade him return. September 14 NCLTto hear Shivinder's withdrawal petition ‘NCLT must not step in at every stage’ In the Essar Steel insolvency matter, the bench observes tribunals are not supervisory authority to see what is happening, who was invited and who was not August 2, 2017 NCLT admits Essar Steel's insolvency case Oct 6, 2017 RP invites EoI Feb 12, 2018 ArcelorMittal, Numetal submit bids for Essar Steel March 23 CoC declares both bids ineligible and invites fresh bids FE BUREAU New Delhi, September 13 Sources said, with legal experts stating that Shivinder cannot escape the fallout of either the Daiichi Sankyo award or the Fortis matter because it pre-dated his moving against his elder brother Malvinder made people close to him suggest mediation rather than confrontation. On September 5, the Delhi High Court had cracked the whip on the brothers for disobeyingitsorderpassedinFebruary and asked Malvinder to deposit the sale proceeds of around 3.5 million Singapore dollars of his shareholding in Singapore-listed Religare HealthTrustwithinfourweeks. Thecourtalsobarredthebrothers from moving any assets abroadanddirectedfreezingof their shares in Best Healthcare thatownstheFortistrademark. THE SUPREME COURT on Thursday said the National Company Law Tribunals (NCLTs) and the appellate tribunal should not entertain petitions by the concerned partiesateverystageoftheresolution process in insolvency cases as it causes delays. The apex court’s observation was that the tribunals should come into the picture only when the entire matter is settled by the concerned resolution professional (RP) and the committee of creditors (CoC). The observation by the SC came as it continued its hearings in the matter where ArcelorMittal has appealed against the National Company LawAppellateTribunal's order relating to its eligibility to bid for the bankrupt Essar Steel by giving it three days to cure its March 26 ArcelorMittal moves NCLT challenging rejection of its bid April 2 Last date for submission of second round of bids April 19 NCLT Ahmedabad asks RP, CoC to consider first set of bids April 26 Numetal moves NCLAT April 28 ArcelorMittal moves NCLAT bid of its infirmity. While NCLAThad approved the eligibility of the second round of bid put in by Numetal, it said ArcelorMittal first needed to clear dues of `7,000 crore of firms it was previously associated with bySeptember11 to be eligible to bid. A bench led by Justice RF Nariman observed that the role of NCLT and NCLAT Relative tax advantage of Ulips and rationalisation in its costs make it an attractive investment proposition for investors to meet life goals, along with insurance cover ■ Personal Finance, P9 QuickPicks Steel ministry begins talks with Japan, Korea firms for JV plant AFTER BEING prodded by the Prime Minister's Office, the steel ministry has initiated discussions with Japanese and Korean steel firms for setting up a 5-mtpa steel plant through a joint venture with the state-run Rashtriya Ispat Nigam in Vizag, reports Surya Sarathi Ray in New Delhi. The proposed venture would entail an estimated `30,000-crore investment. PAGE 2 Sebi may allow foreign entities in commodities market LOOKING TO deepen the commodity derivatives market, Sebi’s board is likely to approve a proposal to allow trading by foreign entities with exposure to the Indian physical commodity market, reports PTI. Such foreign entities may be allowed to hedge their exposures with derivatives trading in all commodities traded on Indian exchanges, barring the sensitive commodities. PAGE 2 ‘Brazil,Australia to fight any Indian sugar export subsidy’ BRAZILIAN AND Australian sugar industry groups are working together with their respective governments to prepare a formal complaint to WTO over any possible sugar export subsidy by India, Eduardo Leão, executive director at Brazil's cane industry group Unica, told Reuters. Brazil & Australia view any subsidy by India as a grave threat to a recent price recovery, he said. PAGE 10 ■ Patanjali to supply cow milk in Delhi-NCR, Rajasthan and Maharashtra's Mumbai and Pune areas CASH COW ■ A litre of Patanjali cow milk to cost `40 PRESS TRUST OF INDIA New Delhi, September 13 BABA RAMDEV’S Patanjali Ayurved on Thursday announced its entry into the cow milk segment by launching cow milk and milk-baseddairyproducts,targeting sales of around `1,000 crore by FY20. The Haridwar-based company has also ventured into packaged drinking water, frozen vegetables, cattle feed without any urea, and solar panels in a major product offensive. Patanjaliwould supplycow ■ To have a network of around 56,000 retailers, dispensing around 4 lakh litres of milk daily ■ Firm targeting daily sales of around 10 lakh litres by FY19-20 milk in the markets of Delhi NCR, Rajasthan, Mumbai and Pune areas of Maharashtra with a network of around 56,000 retailers, dispensing around fourlakh litres milk on daily basis. “We are aiming to have a businessof`1,000crorebythe nextfiscal.Thisfiscal,wewould have a business of `500 crore,” Ramdev told reporters at the launch here. Thecompanyhasatargetto touch daily sales of around 10 lakh litres of cow milk by FY19-20,he added. Continued on Page 2 Continued on Page 2 Panel reviews suggestions, to meet again in a month FE BUREAU New Delhi, September 13 websitebusinessmontres.com. Apple has rapidly gained share in the watch market, with connected technology research firm CCS Insight estimating that the tech giant will come close this year to matching worldwide sales of Swiss-made watches, which had shipments of 24 million units in 2017. Exports of Swisswatches in the entry-price segment — a retail price of up to around $500 — have steadily declined over the past years, with competition from smartwatches one of the factors responsible. A PANEL OF senior bureaucrats,headedbydepartmentof industrial policy and promotion (DIPP) secretary Ramesh Abhishek, on Thursday reviewedrecommendationsof a task force on e-commerce and decided to meet again in a month,official sources said. “No final decision was taken in the meeting. But all departmentswilldeliberateon the task force’s recommendationsrelatingtotheirareasand getbackwiththeirsuggestions in a month,”said a source. Themeetingwaspartofthe government’s efforts to hammer out consensus on the e-commerce policy, after departments, including DIPP and the ministry of electronics and information technology(MEitY),expressedtheir reservations on certain suggestions of the task force, chairedbythencommercesecretary Rita Teaotia. The task force had drawn criticism for its suggestions — including making necessary policy changes to enable founders of domestic e-commerce companies to have control even if theirshare-holding issmall,allowingforeigndirect investment (FDI) in e-tailers that hold inventory of all locally-produced items and asking firms to store data locallywithin two years.Curbs on deep discounts and bulk purchasesofcertainitems,and preference forRuPayhave also been sticking points with some stakeholders. Continued on Page 2 Continued on Page 2 Continued on Page 2 Patanjali enters cow milk business should come only after the resolution process is finalised and their “jumping in” when the proceedings are going on before the resolution professional and CoC is like halting the process. “They are not supervisory authority to see what is happening, who was invited, who was not. The adjudicating authorities can look into the whole thing including if it is in accordance with the law after the resolution process is finalised,” the bench said. The bench agreed with senior counsel Harish Salve appearing for ArcelorMittal that directing the company to clear `7,000-crore liability towards Uttam Galva and KSS Petronwithwhich itwas previously associated with was “wrong”. “Here everything is wrong, from top to bottom. Adjudication is wrong,” the bench observed. Hearing on the matter will nowresume on September18. ● E-COMMERCE POLICY EYEING `1,000-CR SALES Special Features BOND Shivinder Singh moved NCLT against elder brother Malvinder Singh FE BUREAU New Delhi, September 13 PSUs scouting for discovered oilfields in Russia ` September 4 On advice of their mother, the Singh brothers will engage in mediation to resolve their issues SC OBSERVATION Ganapati comes home Devotees at the GSB Seva Mandal Ganesh pandal in Mumbai on the occasion of Ganesh Chaturthi on Thursday ● TIMING A REVOLUTION Apple’s new ‘ECG’ watch could take bite out of Swiss market REUTERS Zurich, September 13 THE SWISS WATCH industry facesanincreasedthreatfroma newAppleWatch able to detect heart problems that is likely to appealtooldershoppers,industryexperts said onThursday. Apple presented the new Apple Watch Series 4 able to take an electrocardiogram to detect an irregular heartbeat and start an emergency call automatically if it detects a user falling down. “Farfrom just being an evolution, the new Apple Watch 4 is probably a revolution because it does not only target CEO Tim Cook discusses the new Apple Watch 4 at the Steve Jobs Theater on Wednesday AP/PTI the wrists of geeks, but also of people over 45 who care about their health,” industry expert GregoryPons said on hiswatch REVIEW MEET BY PM Economists warn against populist moves; ‘rupee no big worry’ FE BUREAU New Delhi, September 13 AS PRIME MINISTER Narendra Modi is huddlingwith keyeconomic policymakers on Saturday to ascertain if and what interventions are needed in the wake of the rupee’s slide and the rising prices of fuels, severaleconomistssuggestthe government and the central bank manage the currency’s volatility more aggressively but caution against pressing the panic button and band-aid solutions, as these would only encourage currency The govt should expedite GST refunds, address rural distress and boost jobs. ` at 72 is not a major problem and the govt need not react in haste or panic. — PRONAB SEN FORMER CHAIRMAN, NSC manipulators to further exploit the situation. Thegovernmentmustsend a clear signal to foreign Government doesn't need to do something special except to curb ` volatility. It should spell out clearly how it implements (crop) MSP programmes. — DK JOSHI CHIEF ECONOMIST, CRISIL investorsthatitwillsticktothe fiscal deficit target of 3.3% of GDP in 2018-19 despite the 2019 general election and Fiscal prudence, together with high growth and RBI commitment to keeping inflation controlled, should send investors a signal on macro stability. — SAUGATA BHATTACHARYA CHIEF ECONOMIST, AXIS BANK desistfrompopulistmoveslike fuel tax cuts,they say. Saturday’s meeting, to be attended by finance minister Govt must send signals to foreign investors that it will defend the ` and take steps to boost capital inflows. It should avoid cutting fuel taxes and take steps to cut CAD. — MANOJ PANDA DIRECTOR, IEG, DELHI Arun Jaitley, NITI Aayog vicechairmanRajivKumar,PMEAC chairman Bibek Debroy and finance secretary Hasmukh Adhia, is expected to discuss options such as NRI bonds to prop up the rupee, apart from asking the RBI to intervene in the market, according to official sources. Pronab Sen, former chairman of the National Statistical Commission, however, said many NRIs had in the past grabbed cheap loans in dollars and parked in India to take advantageofthe200-300basis points difference between the interest rate on NRI bonds and therateatwhichtheyborrowed. Continued on Page 2
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