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APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 277, 26 PAGES, `10.00 (PATNA & RAIPUR `10.00) 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: 60,858.43 ▼ 187.31 NIFTY: 18,107.85 ▼ 57.50 NIKKEI 225: 26,405.23 ▼ 385.89 HANG SENG: 21,650.98 ▼ 27.02 `/$: 81.36 ▼ 0.11 `/€: 88.08 ▼ 0.25 BRENT: $84.82 ▼ $0.16 GOLD: `56,380 ▲ `94 FLOUTING LOCALISATION NORMS FAME probe: Six more EV makers under scanner LOSING SPARK Blocked subsidy amount IN THE NEWS for electric two-wheelers Sebi investigating crosses `1,000 crore investments between Nippon MF, Yes Bank SWARAJ BAGGONKAR MARKET REGULATOR SEBI is investigating investments between Nippon India Mutual Fund and Yes Bank between 2016 and 2019 for suspected misuse of investors' money, reports Reuters. At the time, the parent company of the mutual fund was owned by the Anil Dhirubhai Ambani Group. ■ PAGE 9 Adani to now foray into water segment Adani Enterprises on Thursday said it is planning to enter the water segment as this is a key element of its core business of infrastructure. Group CFO Jugeshinder Singh said being the largest infrastructure player, “ we’re very keen on tapping the water segment by entering water purification, treatment and distribution areas”, reports PTI. ■ PAGE 5 EXPLAINER Covid impact on school learning ■ PAGE 22 ■ Govt looking into around 18 Mumbai, January 18 WITH ANOTHER HALF a dozen electric twowheeler makers being investigated, the government has widened its probe of companies that havewrongfullyclaimed sops under the FAME II scheme. In all,the government is now looking into the operations of around 18 companies to determine if the subsidies were rightlyclaimed.The total amount of subsidy withheld has crossed `1,000 crore, according to persons familiar with the development. In 2022, the government suspended then market leaders, Hero Electric and Okinawa Autotech, from availing subsidies for flouting localisation norms. Sources said the government has now roped in accounting services firm EYfora financial audit of all companies who claimed the subsidies. India’s premier vehicle testing andvalidation agencies — ICAT and ARAI — had carried out the initial round of audits on auto components. “EY wants to check our books of accounts for any misappropriation of the subsidies we claimedunderthescheme.Whileno subsidies havebeenreleasedsinceApril,theyhaveasked forfinancials of Octoberand Novembertoo,”a senior executive of a company whose subsidies have been stopped,said. With firms not inclined to continue production without subsidies, production and despatches to dealers nosedived in December Sun Pharma acquires Concert for $576 mn RAJESH KURUP Mumbai, January 19 ■ Battery makers, too, have seen a sharp dip in fresh orders and production FE BUREAU New Delhi, January 19 IN A MAJOR SETBACK for Google, the Supreme Court on Thursday declined to stay the order of the Competition Commission of India (CCI) which directed the tech major to make changes to its Android ecosystem. The apex court said at the interlocutory stage,the findings of the CCI against Google were neither without jurisdiction nor suffering from any manifest error warranting its interference. However, the SC granted Google a penalty levied on it within a week EY to carry out financial audit of companies who have claimed FAME II subsidies and January,manufacturers said.The subsidy is from `17,000 to `60,000 pertwo-wheeler. “There is pressure on the dealers.Some are exploring an exit,while others are looking to become multi-brand outlets. Funding for inventory from financial institutions has dried up and repayments to them are nowlate by 180 days,” said an electric two-wheeler dealer seeking anonymity. Continued on Page 8 FMCG major Hindustan Unilever reported a 12% y-o-y rise in standalone net profits for the quarter ended December to `2,505 crore. Its earnings were marginally ahead of Bloomberg’s estimates, reports Kritika Arora. ■ PAGE 4 Asian Paints Q3 profit up 6.4% to `1,097 cr ASIAN PAINTS, INDIA’S largest paint manufacturer, posted a 6.4% rise in consolidated net profit to `1,097.06 crore in Q3, as demand rose after the extended monsoon, but missed Street estimates, reports Rajesh Kurup. ■ PAGE 4 cert’s 30-day volume weighted average price as of January 18. “Sun Pharma is building a global dermatology and ophthalmology franchise and aims to be a preferred development and commercial partner in these therapies worldwide,” Abhay Gandhi, CEO, North America at Sun Pharma,said. AU Small Finance Bank net profit rises 30% AU SMALL FINANCE Bank on Thursday announced a 30% y-o-y increase in net profit for the quarter ended Dec 31 to `393 crore. This is the highest ever quarterly profit, the lender said, reports fe Bureau. ■ PAGE 15 Limit group insolvency only to bankrupt entities, says panel BANIKINKAR PATTANAYAK New Delhi, January 19 A GOVERNMENT PANEL has suggested that a corporate group insolvencyframeworkundertheInsolvency and Bankruptcy Code (IBC) should applytoonlybankruptentitiesthatare alreadyundergoingresolutionorliquidation process,and not to the solvent firms of the group. However, financial services providers like banks would be outside theambitofthe framework,ithassaid. Thepanelunderretiredbureaucrat KP Krishnan has also recommended that the framework be adopted in phases and rules to initiate domestic THE FRAMEWORK ■ Group framework is important as disentangling assets/ liabilities, identifying creditors is essential in case ofsingle-entity insolvency proceedings group insolvency (with assets within the country) be enacted first.“A group insolvency framework should be laid downundertheCodethatisvoluntary, flexibleandenablinginnature,”itsaid. The report,the second bythe Cross ■ All proceedings against firms ofa groupwill be under the same NCLT; pending applications to be transferred to NCLT that is first to admit application for insolvency ■ It will have to uninstall preloaded apps on Android phones and let users select a search engine of their choice week's extension to comply with the antitrust regulator’s order. Google had moved the SC seeking an interimstayon CCI's order,which had also levied a penaltyof `1,338 crore on it,after the National Company LawAppellate Tribunal (NCLAT) on January 4 declined to HUL posts 12% rise in Q3 profit to `2,505 cr There is a significant unmet need in the Alopecia Areata space and we aim to build on Concert’s commitment to supporting this patient community Continued on Page 8 blocked, production and despatches to dealers plunged in Dec & Jan THE ROAD AHEAD Tech giant will need to ■ Google will have to uninstall pre-loaded deposit 10% of the apps on Android phones `1,338 cr RESULTS CORNER ABHAY GANDHI, CEO, NORTH AMERICA, SUN PHARMA SUN PHARMACEUTICAL INDUSTRIES, the world’s fourth-largest specialty generic pharmaceutical company, has signed a definitive agreement to acquire US-based Concert Pharmaceuticals for an equityconsideration of $576 million. The deal will enable the Indian company to advance its treatment of Alopecia Areata, a dermatological disease, which results in hair loss. SunPharmawillacquireall outstanding shares of Concert through a tender offer for an upfront payment of $8 per share in cash. Concert stockholders will alsogetanon-tradeablecontingentvalue right (CVR), entitling them to up to an additional $3.50 per share of common stock in cash, the Indian firm said in a stock exchange update. The CVR is payable upon deuruxolitinib (an oral inhibitor for treatment of Alopecia Areata, which is in late-stage development)achieving certain net sales milestoneswithin specified periods.The transaction was approved by the boards of both companies,it added. The upfront payment of $8 per share is at a premium of about 33% to Con- companies to see if they rightfully claimed subsidies ■ With subsidies No SC relief for Google on CCI order ■ Banks and other financial services providers would be outside the ambit ofthe framework Border Insolvency Rules/ Regulations Committee,wassubmittedtotheministry of corporate affairs in December 2021,but hasnowbeen made public. Continued on Page 8 New Delhi ■ SC has told it to approach NCLATwithin three working days from Thursday for adjudication on its appeal against the CCI order offer any relief and directed the company to deposit 10% of the penalty levied.The NCLAT had, however, admitted the company's plea challenging the CCI's orderfor further hearing. Continued on Page 8