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It is that time of the year when I look back at the months gone by and analyse events which may have leveraged the prospects of the Indian economy, and the progress seems manifold in almost all sectors. Real estate and infrastructure, too, is an area that has witnessed unprecedented growth in the past two decades. From roads to highways and bridges to state-of-the-art buildings, housing systems, office complexes, malls and more — the construction scenario has been spectacular. However, with growth comes the slack, and with the economy facing a slump in the past few years, no sector has been left unscathed. Real estate has also been facing the music, what with a slowdown that is refusing to go away. Investors and builders have been awaiting a turnaround — but to no avail.Monetary tightening resulting from RBI’s measures to control inflation was the major macro influence on the real estate business in India through most of the year. High interest rates, spiralling vacancy levels and lower margins arising from inflationary pressures, too, led to a slowdown of construction activity, leading to a drop in new launches, and also delayed project delivery by several months. Developers with exposure to residential projects are particularly worried, with slowing sales leading to a situation of oversupply in many parts of the country. Unsold inventory levels within the Mumbai Metropolitan Region stood at 45 per cent, followed by NCR (national capital region) which hovered around the 25-30 per cent mark. On the commercial front, the sluggishness coupled with dull sentiments was equally evident in the shopping centre business, with as many as 13 mall projects being deferred in the top eight cities of the country during the first six months of 2013, as developers were either cautious or facing a cash crunch. The top eight cities witnessed a total mall supply of nearly 3 million sq. ft during the first half of 2013 with over 60 per cent of the total expected supply deferred. The government’s decision to allow 51 per cent FDI in multi-brand retail couldn’t have come at a better time and should benefit the retail sector by making way for more shopping malls in each city. The office market though, has managed to hold its ground, and is being driven by the burgeoning IT and BPO industries, which are bringing large amounts of cash. Also, with the Western economies now showing some green shoots of recovery, it would not be unfair to consider them catalysts for leveraging the momentum, even further. However, from an investment perspective, I expect the BFSI (banking, financial services and insurance) sector to drive the majority of office space absorption on the back of issuance of new banking licences in early 2014.At a time when the real estate sector was reeling under a liquidity crunch and poor sales, the Securities and Exchange Board of India (Sebi) revived the process of introducing real estate investment trusts (Reits) in the country. In view of the crucial role that Reits could play as investment vehicles, the Sebi brought out draft Reits regulations in December 2007 to encourage and facilitate their healthy growth in India. However, these regulations couldn’t take shape due to a number of factors, including the global economic slowdown, which also impacted real estate markets. In a welcome move, Sebi once again brought out draft Reits regulations in 2013, which were made public on 10 October for inviting stakeholders’ views. While there may be some distance to cover before India develops retail Reits as they exist in the US, the measure is expected to boost transparency and corporate governance in the real estate industry as a whole.The underlying reason for all these moves is that the Indian real estate story continues to be tremendously attractive. While there is a sort of saturation in tier-I cities, the good news is that tier-II cities have started growing with the IT/ITeS and industrial sectors investing in such places. Thus, Indian real estate is poised for a boom, and will take the economy along with it. The notion that Indian real estate is expensive is based more on the cost of undeveloped land, which is becoming a scarce commodity, than finished residential or office space, which is still available at reasonable prices in most places. The momentum remains positive. If we can get the investment story right, lower the fiscal deficit, and have more progressive monetary policies drafted by the Reserve Bank, there’s nothing that can stop us from coming back onto the growth track by the second half of 2014. The author is chairman and managing director, Knight Frank India. The views expressed here are his own(This story was published in BW | Businessworld Issue Dated 13-01-2014)
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In drawing rooms across Delhi, the lunching classes are packing away their pashminas and airing their handspuns. In Mumbai, the threat of RTI is looming over the heads of celebrities wondering whether it’s the end of champagne times. Change was never more evident in the air. Will the rising tide of nationalism spell the end of expensive taste? Is the world of graft and baksheesh over? Change makes an uneasy playmate. It is the passenger in a train everyone eyes with suspicion. The Johnny-come-lately, a jholawala evangelist whose motives are uncertain, might yet launch an Indian spring. But change is also a harbinger of promise and new excitement, of surprises — welcome or otherwise. Prices Will Rise, Prices Will FallA few pundits are still demanding a ‘price correction’ amidst signals that prices are rising. Francis Bacon’s painting — Three Studies of Lucian Freud— sold recently for a record Rs 900 crore. If you don’t expect prices for Manet and Monet, Picasso and Bacon, to go soft, why expect works by S.H. Raza, F.N. Souza, M.F. Husain and Tyeb Mehta to lessen in value? Even Ram Kumar, whose value had come down, is selling stronger now. As for Gaitonde, he’s your ticket to billionairedom (if you’re selling) along with an original Raja Ravi Varma, or Amrita Sher-Gil. But prices and interest among the contemporaries still remain ambivalent. It’s hard enough trying to understand political statements in art without being able to justify prices. So, yes, further price correction might be inevitable.Where Were They Hiding?By the time you read this, Christie’s would have concluded its first auction in India with a line-up that included the three Tagores (Rabindranath and his nephews Abanindranath and Gaganendranath) as well as Nandalal Bose who were sidelined by the brasher Progressive Artists’ Group. Fair To BiennaleChristie’s and the desi auction houses Saffronart, Astaguru and Pundole’s are responsible for meticulous sourcing and greater vigilance with regard to quality and provenance of works. In turn, galleries will be pressured into putting together better shows. But for the junta, the experience of finding both wheat and chaff together will begin in January with the India Art Summit in New Delhi and wind down in December with the Kochi Muziris Biennale. Legal PaletteArvind Kejriwal should be pleased that a growing propensity for auctions has brought in greater transparency into dealings. Fear of the Aam Aadmi will keep galleries on the straight and narrow with payments not in black currency but by cheque. Foreign Interest In Indian ArtIf the writing is on the wall, the BJP’s international supporters will draw from popular culture. And they’ll look at art as a distinctive marker of their eminence. In 2014, the buying tide will favour NRIs, leading to more museum shows and the presence of Indian artists at global art forums. Younger Artists Will Get Their Due The recession years were hard on the younger artists. Recognition is now coming their way. Already, a mid-career retrospective on Atul Dodiya is on view at the National Gallery of Modern Art. Expect a growing band of middle-aged artists to wrest their place in the market. Desi SpenderAs luxury spends rise, sale of art could double over last year. After the Birkin bag and the Zegna suit, it’s Souza and his ilk who’ll usher you into the club of art collectors. Building InstitutionsWho’ll announce the next private museum? We don’t know for sure — though some are in the making (or, at least, collecting) stage. Meanwhile, the foundation stone of the Kolkata Museum of Modern Art was laid. If work starts soon, by 2014 the process of selection of works for its inventory will begin. Aspiring Middle ClassA growing middle class with money to spend will spur a market that has remained unacknowledged. Expect terms such as ‘woodcuts’ and ‘linocuts’, ‘serigraphy’ and ‘3 of an edition of 5’ to become common currency. Homes will aspire art, breaking through the stranglehold of decorative art aesthetic. Photography will get a leg up too. Husain’s ArtHusain’s prices will rise further, but public viewings of his work will still invite opprobrium. Blame the times we live in, which 2014 will be hard put to shed. The End of MoneyNew funds will remain a taboo in 2014. The author is head, publications & exhibitions, Delhi Art Gallery (This story was published in BW | Businessworld Issue Dated 13-01-2014)
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The luxury market will continue to grow in 2014 at an average of 15-20 per cent across categories. If 2013 is any indication, the global reduction in spends on luxury has not made any significant dent in the Indian market. If brands have grown globally in single digits, in India, the same have experienced double-digit growth. This is a very healthy indicator for brands in India and I am optimistic of these growth patterns continuing into the next year as well. The luxury consumer in India has indeed matured. There has been a gradual but visible shift towards spending on products that are high on quality and heritage as against badge value and logos. I see this trend maturing with more people appreciating luxury for its value and aesthetic. We will also witness a rise in aspirational consumers as more people come into the fold of luxury through greater access to brands as they move into cities outside the main metros of Delhi and Mumbai. Luxury is fast venturing into newer territories. For instance, Kolkata will soon witness the launch of the city’s first luxury mall, Quest. Many new malls are also scheduled to open by end-2014. In 2014, luxury will further expand to newer categories, such as personal care and luxury homes. Developers are focusing on luxury residences in a big way. In fact, many new projects in this space are on the anvil. Alongside luxury homes, the market for luxury home décor is also on the rise. And so is case with the personal care industry. People are now spending on luxury products in the cosmetics and personal hygiene space. Brands like Crabtree & Evelyn are rapidly expanding to cities such as Pune and Kolkata. Luxury wines and spirits are also an expanding category. It is interesting to note that women are indulging in this category as much as men. The accessories market will grow laterally as men’s accessories find more takers. Men are becoming increasingly fashion conscious. The mantra clearly is ‘if you have it, flaunt it’. The author is MD, Genesis Luxury (This story was published in BW | Businessworld Issue Dated 13-01-2014)
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Back in 1907, there was a major crash in the US equity market. The Federal Reserve was not in existence then, and J. Pierpont Morgan, a banker, was spearheading the effort to support the market. One evening, newspaper reporters asked him what he expected would happen to stock prices the next day. The great man is supposed to have pondered over the question for a few minutes, before gravely replying: “They will fluctuate.” That statement applies to the rupee’s exchange rate over 2014.We formally adopted a floating exchange rate as part of economic reforms in the early 1990s. In practice, the central bank was trying to keep the real, that is, inflation-adjusted exchange rate reasonably stable though intervention, for the next decade and a half. The external deficit remained low, after a few years of surplus in early 2000. Empirical evidence suggests that a major change was made in 2009: the central bank practically stopped intervening in the market, though there has never been any public announcement of the change. Looking forward to 2014: will the new government review the floating rate policy in the light of our experience? Is it the optimum regime for an economy that needs a sharp hike in output and employment, if only to maintain social stability? For many years, we have had higher inflation in comparison with our major trading partners and competitors in third markets. And, an appreciation of the real exchange rate is as deflationary as high interest rates, a reality often overlooked by the business media (and business leaders). In an increasingly globalised economy, the real exchange rate matters both to growth and the external balance. In the last fiscal year, we incurred an unsustainably large current account deficit — almost 5 per cent of GDP. The focus of the policy makers since then has been far more on financing the deficit rather than curtailing it. On the latter, the only step taken is the import duty hike on gold. It may well lead to increased smuggling, financed by diversion of remittances through the illegal hawala market. While the Q1 numbers in the current year were equally bad, Q2 has evidenced a sharp drop in the deficit because of improvement in exports and lower imports, particularly gold. Remittances also do not seem to have been affected significantly; it perhaps takes time for the smuggling and financing channels to be established: they functioned beautifully for 40 years when import of gold was banned (remember that 20 million marriages a year in India, and the purchase of an average of 4 tolas of fresh gold each, translates into 900 tonnes of annual demand).Export growth does bear out the fact that the fall of the rupee from around Rs 45 to a dollar to around Rs 62 at the time of writing has helped push growth. Indeed, the fall of the rupee is a little more than the inflation differential over the past two and a half years. The big question for 2014 is whether the fall is enough for our tradables sector to be globally competitive. Back in 2002, the exchange rate was over Rs 49 to a dollar, and the external account was in reasonable balance. Taking that as the starting point suggests that the rupee is still significantly overvalued in real terms. And, the inflation differential remains as high as ever. Meanwhile, tax cases, environmental regulations and court judgments are all discouraging long-term investment capital — and we are taking increasing recourse to importing short-term finance capital to bridge the gap. Will a change in US monetary policy be a major influence? It could, as our exchange rate is hostage to the investment decisions of a few dozen fund managers outside India. There is also the risk of populist fiscal policies in the pre-election months leading to a downgrade of our rating.At one time, we were a proud member of the Bric (Brazil, Russia, India and China) Group of fast-growing emerging markets; have we now joined Bits (Brazil, India, Turkey and South Africa) — all of whom have significant imbalances on the external account? It is worth reminding ourselves that over the past 60 years, all the economic miracles — Germany and Japan in the post-war decades; Korea and Taiwan later; and China over the past three decades — have been underpinned by managed exchange rates and a rapid export-based growth of the manufacturing sector. There is no record of a country having grown fast on the basis of importing finance capital and a stagnant manufacturing sector. Coming back to the prospects for the exchange rate in 2014, I expect, indeed hope, that it will be nearer Rs 70 than Rs 60; that we go back to the policy we adopted successfully for a decade and a half — but, based on a better constructed index of the exchange rate. The author is a forex and treasury risk management consultant(This story was published in BW | Businessworld Issue Dated 13-01-2014)
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Sharing it, rather than buying it, has become a serious trend. In transport, any big city worth mentioning seems to feel it needs a share-bicycle scheme — the Vélib’ scheme in Paris was a pioneer (although not the first). Barclays Cycle Hire in London is a major operation and, when I was in San Francisco recently, Bay Area Bike Share had just been launched there. Ditto for shared cars — I’ve got a Flexicar card (Australia) and a Zipcar card (UK and US) in my wallet. BMW is working on its own version, scattering BMWs around a city (Munich being the first) for shared use. At the other end of the transport spectrum, you can even share executive jets. NetJets is the best known. Ride-sharing (aka dynamic carpooling) is another rapidly growing field. And then there’s Airbnb, the do-it-yourself hotel operation where you rent out a room. Less SecurityAt the moment, it’s all more, more and more when it comes to travel security — the backlash has to come. Amid this increasing security madness, it’s great to occasionally see a tiny glimpse of sanity. Exiting San Francisco airport, I encountered a sign saying you couldn’t bring your bottle of mineral water across to the airside from the landside, but you could empty it out and refill it — for free — at a water fountain. Well, that makes sense! The world certainly doesn’t need any more plastic bottle waste. Burning EnergyWe don’t want to sit around when we’re travelling, we want to do things, get fit or simply pump up the adrenaline. An example: bicycle touring. This could be gently pedalling from one stylish guest house to another (with winery stops in between) in France, or cycling the length of Africa with the Tour d’Afrique organisers. They also put on adventurous long-distance bicycle tours in other regions, including India. Or trekking — head to Nepal for the Himalayan heights or almost any other country you care to mention. I’ve joined long distance walks in recent years in England, Italy, Colombia and Australia. Then there’s skiing of course, scuba diving (I’m off to Tonga in a month) or adventurous interludes like hot-air ballooning, bungee jumping, white water rafting. Name an activity, and it’s a growth field. Rising Airlines, Rising Hubs The growth of Doha, Abu Dhabi and Dubai as a three-point superhub, reinforced by three super airlines — Qatar, Etihad and Emirates — will continue. It’s a combination of a whole list of factors. They’re an efficient location; Dubai has become the one-stop jumping off point to almost anywherein the world. Increasing aircraft range is another big factor and the arrival of the 777X in a few years will reinforce that trend. Having three very competitive airlines — in everything from fares to new aircraft to excellent service — also helps. But those three Gulf state locations aren’t the only places that have become increasingly important hubs. China Southern Airlines is promoting Guangzhou as an alternative to Hong Kong, Singapore and Bangkok as an Asian hub. The currently high-flying Turkish Airlines is pushing Istanbul as a hub; there’s even talk about non-stop flights between Istanbul and Australia. Once upon a time, flying between one African country and another often meant going via Paris or London. Now Addis Ababa (thanks to Ethiopian Airlines), Nairobi (Kenyan Airways) and Johannesburg (South African Airways) have all become African centres with extensive connections. The only place that seems to be missing out in this growth of hubs is India! If you want more than just a landing and taking off experience, surely there’s far more to see in India than the United Arab Emirates? So why isn’t Delhi or Mumbai a competitor to West Asia? Location wise, the Indian centres are probably even better situated on the Europe-Asia-Australia route than the West Asian airports. Niche, Niche And Niche Everything will continue to get more specialised. There’s still lots of demand for big, featureless, you-could-be-anywhere-in-the-world hotels, but there’s also a lot of demand for small, specialised places ranging from super-deluxe boutique resorts to interesting budget places. Aman Resorts may have kicked off the super-deluxe category, but there are plenty of other contenders today. Cruise ships are a big growth category anywhere, but much more interesting than the big ships are the small ones, whether they’re heading south to Antarctica, north to the Arctic searching for polar bears, nosing into lagoons on remote Pacific islands or threading their way up the inlets in Australia’s wild Kimberley region. Then, there are long train trips — South Africa’s Blue Train, Australia’s Ghan, the Trans-Siberian across Russia. Or, specialised visits to archaeological sites. Name a speciality and it’s a growth field. The author is co-founder, Lonely Planet (This story was published in BW | Businessworld Issue Dated 13-01-2014)
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A surge in food prices ripped common man's pockets as the UPA government paid for its failure in the assembly polls in four states and may feel the heat in next year's general elections as well if it is not controlled.Prices of kitchen essentials such as onions spiked to a record Rs 100 per kg and tomatoes touched Rs 80 in some states during the year, pushing the food inflation to double digit mark, even as the Reserve Bank tried in vain to contain the price rise.The retail inflation, which is a better gauge of price rise and measured by Consumer price index, ruled in double digit for most months of the year with the latest November figures coming in at 11.24 per cent.While the Reserve Bank on its part has been trying to tame the price rise by hiking key lending rates, there hasn't been much impact as the inflation seems to be entrenched."There is no easy solution to taming food inflation...There are no quick fixes for taming inflation. I am afraid it will take some time to contain this inflation. We are paying a political price for that and I acknowledge that but those are the facts," Chidambaram had said.The wholesale price based inflation rose to 7.52 per cent in November, the highest level seen in 14 months.This is much higher than the March-end inflation projection of the RBI at 5.5 per cent and also higher than central bank's comfort level of 4-5 per cent.The government's effort to cool prices did not yield results as vegetables, especially onion, remained expensive through out the year.Price rise in onion stood at 190 per cent in November, which raised the vegetable basket inflation to 95.25 per cent.With price rise affecting the common people, the Congress lost the assembly elections in Delhi, Madhya Pradesh, Rajasthan and Chhattisgarh. Party President Sonia Gandhi referred to price rise as one of the factors for the defeat.The country is set to go to polls by May 2014 and high inflation and costlier food items may pose a big challenge for the UPA government while making efforts to regain power for the third consecutive term.(PTI)
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My family has been in the jewellery business for nearly a 100 years. In fact, in the 1930s, a subsidiary of the East India Company used to buy gold from us for wholesale trade. In those days, I am told, there were just about 5-6 gold jewellery shops near the Mumbadevi temple. Times have changed — and changed for the better. The 18 streets criss-crossing Zaveri Bazaar and Dagina Bazaar in Mumbai are home to more than 6,000 jewellery shops, 60,000 factories, and attract over seven lakh visitors every day. On a normal day, jewellery and bullion worth Rs 180 crore changes hands in this market. During festivals, daily trading volumes touch over Rs 450 crore. The organised gold and bullion market in Mumbai has passed through several policy-related changes in its 150-year history — the most significant being the scrapping of the Gold Control Act. Till the annulment of this Act in 1990, the government practically did not allow citizens to buy or deal in gold bars or coins. Illegal, unofficial gold markets which dealt only in cash proliferated. Gold, in those days, was smuggled into the country through border roads and ports, creating even bigger problems for the country. The decision to free gold imports by paying a small customs duty (then) helped the industry grow manifold. The government realised that it was more prudent to allow imports and earn taxes than to lose it all to illegal markets. This resulted in the massive swelling of gold imports — rising from just about 100 tonnes in 1992 to over 900 tonnes in 2011. So, the period between 1990 and 2011 was one of the best phases for the gold jewellery and bullion business in India. The industry started facing headwinds when the rupee started weakening on account of weak economic fundamentals, higher demand for dollars from oil companies and, to a small extent, gold imports.Among various measures taken to stem the rupee’s fall, the government imposed curbs on gold imports. The customs duty on gold was increased from 2 per cent to 10 per cent in a span of just 18 months. The average customs duty between 1993 and 2008 was 1-1.5 per cent. Now, it is 10 per cent on raw gold and 15 per cent on imported jewellery.India is one of the largest importers of gold in the world; any attempt to curb demand in India will result in a meltdown in global prices. So when India tightened gold imports in April and May 2013 by hiking customs duty, it reduced the import of gold into the country. This also triggered a price correction in global markets. When gold prices fell from Rs 32,800 per 10 grams to Rs 26,500, Indians started buying gold again. This resulted in a spike in gold imports from just about 9 tonnes in July to 12 tonnes in September and 24 tonnes in October. Thus, the decision of the government to increase customs duty to reduce gold imports has not really worked in its favour. Also, because of import controls, there are reports of gold being smuggled into India via its international borders. Gold smuggling is not good for any country as these channels later become conduits for transfer of fake currency and illegal arms.Therefore, the government and various industry bodies should sit around the table, discuss and analyse the problem. Policy-makers should also bear in mind that gold is an important commodity in this country. Indian women, at this point, have over 25,000 tonnes of gold with them. For them, gold is not just about ornaments; it is a savings instrument. Policy-makers have to keep this sentiment in mind while framing policies.Market OutlookDemand for gold in the domestic market has come down on account of higher prices. Buyers are waiting for prices to decline from current levels of Rs 30,500 per 10 grams (PTG). Wedding season demand may keep prices firm in the short term, but over a six-eight month period, I expect a 15–20 per cent correction in prices. The movement of the rupee will also have a direct bearing on gold prices. So, if the rupee remains at current levels of 62-per-US dollar, gold prices may range between Rs 26,000 PTG and Rs 27,000 PTG over six-eight months. Also, we see tepid demand for gold exchange-traded funds (ETF). In fact, the demand for gold for ETFs has fallen to 2,000 tonnes from 2,600 tonnes in 2011.So, if you do not really have any urgent need to buy gold now, you can wait for some time. The author is vice-president, Shree Mumbai Jewellers Association(This story was published in BW | Businessworld Issue Dated 13-01-2014)
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A former law intern, who accused ex-Supreme Court judge A K Ganguly of sexual harassment, has hit back at him for denying the charges and hinted that she may file a police complaint."Those who have been spreading rumours and politicising the issue, are doing so out of prejudice and malice to obfuscate the issue and escape scrutiny and accountability," the intern wrote on her blog on Legally India.Her comments came a day after Justice Ganguly had written an eight-page letter to Chief Justice of India P Sathasivam, denying that he had sexually harassed the intern and alleging there was a "palpable design" to malign him because of the judgements he had given against "powerful interests".Indicating that she may lodge a police complaint, the intern said,"I request that it be acknowledged that I have the discernment to pursue appropriate proceedings at appropriate times. I ask that my autonomy be respected fully."The intern said that any one claiming that her statements were false was showing disrespect not just to her but also to the Supreme Court."I would like to state that I have acted with utmost responsibility throughout, keeping in mind the seriousness of this situation," she said. A three-judge Supreme Court panel had indicted Justice Ganguly by holding that the statement of the intern, both written and oral, had prima facie disclosed "an act of unwelcome behaviour (unwelcome verbal/non-verbal conduct of sexual nature)" by the judge with her in the Le Meridien hotel room on December 24 last year.In her rebuttal to Justice Ganguly's letter, the intern said that after the incident when she had returned to her college in Kolkata, she had spoken to some of her faculty at different times."Since the incident occurred during an internship, and the University did not have a policy against sexual harassment of women students during internship, it was indicated to me that any action would be ineffective."I was also informed that the only route for me was to file a complaint with the police, which I was reluctant to do.However, I felt it was important to warn young law students that status and position should not be confused for standards of morality and ethics. Hence, I chose to do so via a blog post," she said.The intern said that while deposing before the three- judge committee probing her allegation against Justice Ganguly, she had "sought confidentiality of proceedings keeping in mind the gravity of the situation, as well as the privacy of everyone involved"."I did not question the jurisdiction or intent of the three-member Judges' Committee at any point, and had full faith that they would establish the truth of my statements," she said.She said that the apex court panel had acted with great discretion given the delicate nature of the case and she appreciated it.The intern said after appearing before the panel on November 18 and giving an oral statement before it, she had also submitted to it a written statement signed by her.On November 29, she had sent an affidavit to Additional Solicitor General Indira Jaising, disclosing to her details of sexual harassment and requested her to seek appropriate action.The contents of the affidavit are substantially the same as the statements made by her before the panel, she said."Even after the operative portion of the report of the Committee, was made public, many eminent citizens and legal luminaries continued to deride the Committee's findings, and malign me. "Hence, I found it necessary to clarify the details of my statement to preserve my own dignity as well as that of the Supreme Court. Therefore, I authorized Indira Jaising, to make my statement public," the intern said.In his letter to CJI, Justice Ganguly had also complained that the Supreme Court had not given him a proper hearing."There is a concerted move to tarnish my image as I had the unfortunate duty of rendering certain judgements against powerful interests."I see in the whole game a palpable design to malign me at the instance of interested quarters," the former Supreme Court judge said in the letter to the CJI.Justice Ganguly was part of a bench which had delivered various orders in 2G allocation scam including scrapping of 122 licenses granted by Centre to telecom companies.Justice Ganguly, who is under pressure to step down as chairman of the West Bengal Human Rights Commission, denied allegations of sexually harassing or making unwelcome advances to the woman intern."I have been distressed by some recent happenings. I am anguished that the Supreme Court under your Lordship did not address me correctly," Justice Ganguly said in his letter which he said was also being forwarded to President Pranab Mukherjee.The CJI's office in Delhi was not available for comments as he is out of town on vacation.Questioning the validity of the panel, Justice Ganguly argued that since the intern was not on the rolls of the Supreme Court and he was a retired judge, the committee was "not required to be constituted"."No complaint was ever made before Supreme Court or before your Lordship in any form by the intern at any time prior to the formation of the judges' committee and presumably at the direction of the committee she gave her statement," he said.In her affidavit to the panel, the intern had stated that the judge had called her to the hotel room on Christmas eve to complete a report relating to the All India Football Federation (AIFF)."The judge informed me that the AIFF report had to be submitted the next morning and asked me to stay at the hotel and work all night. I declined and told him that I had to finish the work quickly and return to the PG accommodation," she said.At one stage, the judge took out a bottle of red wine."He also said that since I had had a long day, I should go into his bed room and relax while drinking some wine," the intern said."You are very beautiful," the judge went on to tell her."I immediately rose from my seat, but before I had a chance to respond to the statement, he caught hold of my arm, saying, you know that I am attracted to you, don't you? ... but I really like you, I love you. When I tried to move away, he kissed my arm and repeated that he loved me," the intern said.The judge has strongly refuted the intern's allegations.(PTI)
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Tumbling gold prices, growing consumer confidence and aggressive discounting by retailers have Americans flocking to jewelers' counters this holiday shopping season.The US gold jewelry industry is on track for its highest sales for the fourth quarter since 2010 and its first annual increase in gold sales in more than a decade, precious metal consultant Thomson Reuters GFMS has estimated."I always look for the price of gold in the news and pay attention to discounts and deals," John Mora Gonzalez, a 31-year-old mechanic in New York, said after purchasing a necklace for his wife for Christmas. Mora had spotted J.C. Penney Co Inc's 20-per cent discount on fine jewelry, and paid $40 for a 10-karat gold necklace.Gold prices have plunged almost a third this year, halting a 12-year run of gains. Bullion lost favor with institutional and retail investors as they braced for the U.S. Federal Reserve to reduce its monthly $85 billion bond-buying program, moving funds to equities and other riskier assets.Renewed consumer appetite for gold is unlikely to counteract the lack of investment dollars and reverse the downward trend for prices. But U.S. demand is a bright spot in a global gold market where import restrictions in India have slowed buying in that country, one of the world's biggest consumers.With the US economy growing at its fastest pace in nearly two years and the unemployment rate hitting a five-year low in November, shoppers are more willing to fork out for "bigger-ticket items" during this year's critical holiday season, Dennis Marlow, who owns Solitaire Creations, told Reuters last week."People are saying 'Wow, gold is down. I can finally get the ring or piece of jewelry I want,'" he said.He estimated sales in his store in Manhattan's Diamond District will rise by 15 to 20 per cent this holiday from 2012.Low prices have given big retailers more wiggle room to offer discounts to attract customers this year, jewelers said.Jewelry sales from Thanksgiving until the new year account for as much as half of the annual total, according to estimates.US Bright SpotUS gold jewelry demand in the final three months of the year will increase 15 to 20 percent to between 44 and 48 tonnes, Thomson Reuters GFMS expects. (US gold jewelry demand:)The country's consumption is only one-tenth the size of China and India combined, but analysts expect US demand will outpace other Western developed markets in the fourth quarter.This year's buying spree will likely help gold jewelry win back some market share lost after Americans shunned gold as prices soared over the past 10 years. Jewelry accounts for about half of total gold demand.Even so, fourth-quarter sales this year will be a fraction of the more than 150 tonnes seen in the same period of 2004.Investment DownInvestors have pulled over $36 billion from gold exchange-traded funds, sending holdings to their lowest since the 2008 financial crisis. Institutional selling accelerated after the Fed outlined on Thursday the first concrete details of its plans to reduce the bond buying, or quantitative easing, program, that has bolstered prices.On Friday, spot gold sank as low as $1,185 per ounce, close to a 3-1/2-year lows and down 40 percent from all-time highs of $1,920 in September 2011. On Monday, prices had recovered some, but remained below $1,200 per ounce, and the market is expected to remain under pressure into the new year.Prospects for jewelry demand appear more promising if prices remain weak and jewelers continue to slash prices."If that's the case, I'm more likely to buy more gold jewelry," said Tara Higgins, 48, a lawyer from New Jersey who bought a $5,000 gold bracelet with diamonds on Thursday.(Reuters)
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