OPINION, P2 IDEA EXCHANGE ‘Bust in private equity space imminent… Everybody’s valuation is inflated, even ours… Correction will happen’ Page 5 The bird and the worm agree FE LINES One should take care of foot health even while at home, say experts Page 8 NIKHIL KAMATH ACROSS THE AISLE , P CHIDAMBARAM Best foot forward SPOTLIGHT Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM VOL. XX NO. 31 ANACTOR LESS ORDINARY B E N G A L U R U , WHAT'S INSIDE ■ LEISURE, P9 Funny side up A bunch of content creators are redefining comedy on social media, putting out short comical videos, depicting the common man’s daily struggles and absurdities of the times we’re living in C H A N D I G A R H , C H E N N A I , The story behind a story In his new book, Rushdie takes readers on a literary pilgrimage ODD & EVEN ROHNIT PHORE ● Has to appoint chief compliance officer; company staff as grievance officer, nodal contact person KIRAN RATHEE New Delhi, June 5 HARDENING ITS STANCE, the Why the tiff force from May 26 ■ Social media firms like Twitter need to appoint certain set of resident, Indian company officers to redress grievances complied with rules ■ Govt has in past sent it two reminders for compliance What happens in case of non-compliance with the rules ■ Social media firms have legal immunity under Section 79 as they host third party content ■ Twitter can lose this legal immunity and action can be taken against it by govt government on Saturday issued a final notice to microblogging site Twitter, giving it one last chance to comply with the new Information Technology Rules, warning of ‘unintended consequences’that could lead the company to lose exemption from liabilityas an intermediary, and action against it under Rule 7 of the new rules. The government has said though the new rules came into force from May 26, “as gesture of goodwill, Twitter Inc is hereby given one last notice to immediatelycomply with the rules, failing which the exemption from liability available under Section 79 of the IT Act, 2000, shall stand withdrawn and Twitter shall be liable for consequences as per the IT Act and other penal laws of India”. In the letter addressed to Twitter’s deputy general counsel Jim Baker, the ministry of electronics and information technology (Meity) also said, “It is clear from responses that till date Twitter has not informed about the details of the chief com- new law empowers govt to initiate criminal action against company pliance officer as requested under the Rules.Further,resident grievance officer and nodal contact person nominated by you is not an employee of Twitter Inc in India as prescribed in the Rules. The office address of Twitter Inc as mentioned by you is that of a law firm in India, which is also not as per the Rules.” Continued on Page 12 Suraksha Realty seeks week for new bid; NBCC submits plan ■ The CoC will meet on Monday to discuss the revised bids by both the applicants ■ NBCC’s revised bid was received on June 4 submitted on May 18. The committee of creditors (CoC) will meet on Monday (June 7) to discuss the revised bids by both the resolution applicants. Itwasnotimmediatelyclear whetherSurakshawillgetmore time.“ItwilldependontheCoC. Let’sseewhatdecisionCoCtakes on Monday,” a sources said. This is the fourth round of thebiddingprocessinthematterofJIL'sbankruptcycase.The company went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted anapplicationbyanIDBIBankled consortium. In the first round of insolvency proceeding, the `7,350-crore bid of Lakshadweep,partofSuraksha Group,was rejected bylenders. Continued on Page 12 P U N E MAY MOP-UP GST collection above `1 lakh cr ● Revenues 65% higher than that in May last year Gross GST collections (` crore) Apr ‘21 1,41,384 1,50,000 1,20,000 Jun ‘20 90,917 1,02,709 90,000 FE BUREAU New Delhi, June 5 60,000 GROSS GOODS AND Services Tax (GST) receipts came in at `1,02,709 crore in May, markedlylowerthantherecord `1,41,384 crore mopped up in the previous month, yet a decent sum given the second Covid wave. May collections mostly pertained to the transactions conducted inApril,so it reflectedthelockdown'simpact onlymarginally;thecollections could be much lower in June (Maytransactions). The government said GST collections reported for May included the returns filed till June 4,as taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed returns filingfor15daysinthewakeofthe second Covid wave.The actual revenues for May would be higher since all the extended dateswereyettoexpire,itadded. In recent months, the government’s GST revenue has beenrobust—ithascrossedthe `1lakhcroremarkfortheeight 30,000 0 32,294 April 2020 May 2021 ` ` GST ` ` ` ` ` ` ` ` ` ` straight month in May,thanks to steps taken to curb evasion and also a shift of business awayfrom the informal sector, in addition to a nascent economicrecoverythatappearsto havebeenquicklydisruptedby the pandemic's second surge. For the second year in a row, the Centre will borrow under special, relatively low-cost mechanism in 2021-22 to bridgeayawningshortfallinthe GST compensation cess pool and transfer the funds to states as back-to-back loans,sans any consequentfiscal cost to states. Continued on Page 12 THE UNITED STATES, Britain Students in queue during a special vaccination drive for those travelling abroad for studies in Hyderabad on Saturday PTI PRESS TRUST OF INDIA New Delhi/Mumbai, June 5 WITH COVID CASES declining, Delhiwillseefurtherrelaxation inlockdown,includingreopening of markets and malls and resumption of Metro services, fromJune7,whileMaharashtra willimplementafive-levelplan to ease curbs based on weekly positivityrateandoccupancyof oxygen beds in districts. Tamil Nadu CM MK Stalin announced extension of lockdown till June 14 with some easing of restrictions from Monday, except in 11 districts where the number of new cases reported was still high. Earlier, neighbouring Karnataka had extended the lockdown till June 14. The Uttar New low at 1.20L cases INDIA REPORTED 1,20,529 fresh Covid-19 cases, the lowest singleday rise in infections in around two months,taking the infection tally to 2,86,94,879, as per data updated on Saturday, reports PTI. The death toll climbed to 3,44,082 with3,380newfatalities. Pradeshgovernmentannounced relaxations in the coronavirus curfew in Bareilly and BulandshahrdistrictsfromMonday Continued on Page 12 and other leading nations reached a landmark deal on Saturday to pursue higher global taxation on multinational businesses such as Google,Apple and Amazon. In a move that could raise hundreds of billions of dollars to help them cope with the aftermath of Covid-19, the Group of Seven large advanced economies agreed to back a minimum global corporate rate of at least 15% and for companies to pay more tax in the markets where they sell goods and services. “G7 finance ministers have reached a historic agreement toreformtheglobaltaxsystem to make it fit forthe global digital age,” British finance ministerRishiSunak said after chairing a two-day meeting in London. USTreasurySecretaryJanet Yellen said the “significant, unprecedented commitment” would end what she called a race to the bottom on global taxation. Thedeal,whichwasyears in the making, also promises to end national digital services taxes levied by Britain and other European countries GLOBAL TAX ■ Multinationals such as Google, Amazon and Facebook often book profits in jurisdictions where they pay little or no tax ■ The accord could form the basis of a global agreement next month ■ The pact would ensure taxes are paid in the countries where businesses operate ■ Leaders also agreed to move towards making companies declare environmental impact which the United States said unfairly targeted US technology giants. However,the measureswill first need to find broader agreement at a meeting of the G20 — which includes a number of emerging economies — due to take place next month in Venice. “It’s complicated and this is a first step,”Sunak said. Theministersalsoagreedto move towards making compa- niesdeclaretheirenvironmental impact in a more standard way so investors can decided more easily whether to fund them,a key goal for Britain. Richnationshavestruggled for years to agree a way to raise morerevenuefromlargemultinationals such as Google,Amazon and Facebook,which often book profits in jurisdictions where theypaylittle orno tax. Continued on Page 12 Noida leads in office space uptake, pips Gurgaon RISHI RANJAN KALA New Delhi, June 5 NOIDA HAS BEEN consistently topping the charts as Delhi NCR’s best performing market in terms of net office space absorption for four consecutive quarters. However, it still has a lot to cover compared to competitor Gurgaon, which accounts for a major share of officesoccupiedbylargeMNCs and KPOs,among others. During the January-March 2021 quarter, Delhi NCR witnessedanetabsorptionof1.07 million sq ft (MSF), a 5% growth Q-o-Q, JLL India said, Net ofﬁce space absorption (sq ft) Central Business District Secondary Business District Gurgaon Q1 2020 Q2 2020 Q3 2020 3,49,009 6,48,257 JAYPEE ACQUISITION D E L H I , REUTERS London, June 5 2,756 20,807 Continued on Page 12 N E W Curbs eased in Delhi, Historic deal to tax big MNCs; other states too unlock minimum global tax of 15% 12,863 18,858 61,785 1,67,723 ADDRESSING THE WORLD Environment Day event on Saturday, Prime Minister Narendra Modi said the government has resolved to meet the target of 20% ethanol blending in petrol by 2025, reports FE Bureau in New Delhi. Earlier the target was set for 2030. Modi also released the 'Report of the Expert Committee on Road Map for ethanol blending in India 20202025'. Currently, ethanol blending level in petrol is around 8.5%. Under the Ethanol Blended Petrol programme, the government has already reintroduced the administered price mechanism for ethanol procurement. PAGE 3 M U M B A I , G7 MEET 12,400 64,239 2,23,308 2,28,022 Target to blend 20% ethanol in petrol advanced to 2025: PM submitted the revised bid for acquiring the bankrupt Jaypee Infratech (JIL),even as its rival, the consortium led by SurakshaRealtysoughtaweeks time to submitted its revised plan. Peopleinknowofthedevelopment said NBCC’s revised bid was received on June 4. Suraksha group has written a letter to creditors seeking seven more days to further sweeten its last bid,which was ■ Rule 7 in the OPENING UP Sitharaman on Saturday asked insurance companies to expeditesettlementsofclaimsunder key schemes. She also directed statestotakeupCovidclaimsof health workers on a priority basis and make maximum use of a simplified mechanism that has been put in place. In a virtual meeting with chiefs of public and private insurers, the minister said 1.2 lakh claims amounting to `2,403 crore have been paid to beneficiaries of the PM Jeevan Jyoti BimaYojana (PMJJBY) at a disposal rate of 99% since the pandemicstartedspreadingits tentacles in April 2020. Faster claim settlements have assumed greater significance in recent months, given the ferocity of the pandemic that has claimed 3.44 lakh lives in the country. Under the PM Suraksha Bima Yojana (PMSBY), 82,660 claims worth `1,629 crore have been settled as of May31. personal accounts of Vice-President M Venkaiah Naidu and RSS chief Mohan Bhagwat losing verified blue tick marks, Twitter on Saturday said the blue badge and verified status could be automatically removed from an account if it is incomplete or inactive for six months as per its rules, reports PTI. On Saturdaymorning, Twitter had removed and later restored the verified bluebadgeonthepersonal account of Vice President M Venkaiah Naidu.“Inactivity is based on logging in. To keep the account active,the account holder mustmakesuretologinat least every 6 months,” Twittersaid. Twitter, however, did not disclose the number anddetailsoftheaccounts that had been actioned underthese rules. ■ Twitter till date has not fully 7,68,928 7,34,530 PAYTM’S REVENUE from operations declined to `2,802.41 crore on a consolidated basis in the year ended March 31, 2021 from `3,280.84 crore in FY20, according to the company’s annual report which was reviewed by FE. The digital payments firm, however, managed to narrow its total losses to `1,701.01 cr in FY21 from `2,942.36 cr in the previous year, reports FE Bureau in New Delhi. The firm kept a check on its costs as total expenses decreased to `4,782.95 cr in FY21 from `6,138.23 cr in FY20. PAGE 3 STATE-RUN NBCC on Friday AMID OUTRAGE OVER FINANCE MINISTER Nirmala Paytm FY21 loss narrows to `1,701 cr from `2,942 cr L U C K N O W , Twitter clarifies on blue badge ■ New IT Rules came into FE BUREAU New Delhi, June 5 QuickPicks K O L K A T A , Twitter gets final notice to comply with new rules FM asks insurers, states to speed up settlement RISHI RANJAN KALA New Delhi, June 5 K O C H I , GOVT GETS TOUGH REVIEW MEET ■ WORDS WORTH, P4 H Y D E R A B A D , Q4 2020 adding that Noida contributed 55% of the net absorption followed by Gurgaon at 38%. Noida has been consistently Noida 4,07,000 5,89,000 F R O M : A H M E D A B A D , 31,500 76,891 P U B L I S H E D READ TO LEAD 42,800 32,100 SUNDAY, JUNE 6, 2021, 14 Pages, `10 (Patna `10, Raipur `10) ` FINANCIAL EXPRESS ON SUNDAY NEW DELHI New-age platforms and scripts are empowering unconventional actors Pages 6-7 Q1 2021 Source: JLL India Sou d outpacing Gurgaon since April-June 2020. Noida is attracting corporates as it boasts of better road and metro connectivity, affordable housing, abundant power, Grade-A offices, competitive rentals and upcoming international airport and logistics hub. But, analysts point out that it has a lot to do to catch up with Gurgaon in terms of large clients. “We have to analyse this pragmatically. Last year, if we go by deals in Noida, then one would discoverthat there is no significant movement offirms from Gurgaon to Noida. What Noida was lucky with was that many clients consolidated their office spaces,” JLL India managing director (north & New Delhi east India), Manish Aggarwal said. For instance, a large Indian digitalpaymentcompanytook 5.50 lakh sq ft last year to consolidate six-seven offices spread in Noida into one at Skymark Towers. Another is a South Korean multinational conglomerateconsolidatingin Sector 62. They took around 3 lakh sq ft.Alarge private sector bank, too, last year consolidated its offices from Delhi and other places to Noida taking up around 60,000 sq ft at Max Towers,he added. Continued on Page 12
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