In a huge relief to the Centre and the CBI, the Supreme Court on Saturday, 9 November, stayed the Gauhati High court verdict declaring the agency as "unconstitutional", saying accused in "sensational cases" have sought halting of the criminal proceedings based on that judgement. The apex court relief came on an urgent petition filed by the Department of Personnel and Training, the nodal ministry for CBI, from a bench headed by Chief Justice P Sathasivam, which heard the appeal at an extraordinary hearing in his residence. "In the meantime, there shall be a stay of operation of the final judgement and the impugned order dated November 6, 2013 passed by the Gauhati High Court," said the bench also comprising Justice Ranjana Prakash Desai. It rejected the objections raised by the counsel for Navendra Kumar, on whose petition the High Court had passed the verdict, that DoPT was not authorised to file the Special Leave Petition as it was not a party in the High Court. "Respondent 1 (Kumar) is permitted to raise all objections in his proposed reply," the bench said in its order asking his lawyer L S Chaudhary, who accepted the notice, to file it within two weeks after which the Centre will respond with its rejoinder. Posting the matter for hearing on December 6, the bench rejected the contention of Kumar's lawyer that the Centre's plea is a "collusive petition" as, instead of the CBI and the Ministry of Home Affairs, it has been filed by the DoPT which was not a party in the High Court. "The DoPT is an appropriate department. The CBI will file a separate appeal. We can't dismiss DoPT's appeal in limine," the bench said while taking note of the Attorney General G E Vahanvati's submission that CBI and the Ministry of Home will file their separate appeals. Questioning the findings of the High Court, the Attorney General said the judgement was based on wrong question and presumptions that led to a wrong conclusion. "You did not implead proper respondents before the high court," the bench told Kumar's lawyer. "We read in the newspapers that many people are seeking stay (of proceedings based on this judgement). We have to stay (high court's order). You have read that the two accused in two sensational cases (of CBI) have sought stay of the trial. "You file your objections. We will consider everything. Notice does not mean that we are rejecting your plea," it said. "We are concerned about all other cases (of CBI)," the bench observed. After a 10-minute-long hearing, the bench stayed the November 6 verdict of the High Court which virtually crippled the agency from performing its investigating and prosecuting functions in thousands of cases across the country. At the outset, Vahanvati said, "It is a serious matter with which the DoPT is concerned and the CBI will file its appeal later." He contended the division bench framed "wrong questions and proceeded on wrong presumption and arrived at a wrong conclusion". The AG questioned the High Court finding that CBI is not constituted under the law and created by Central government under the executive order. He also referred to the findings of the high court which quashed the 1963 Resolution as it does not refer to section 2 of the DSPE Act. At this point, the bench reminded the government's top law officer, "No follow up actions were taken after the Resolution." The Attorney General said "the reasoning given by the high court are unacceptable. It is a total misunderstanding of the principle of administrative law. "How does the concept of delegated legislation apply here? This shows complete misunderstanding of the concept of delegated legislation. There is a distinction between delegated legislation and conferment of executive powers." The bench said, "We will consider (the appeal of the Centre). We will have to go through it." The AG said the high court reasoning that the Delhi Special Police Establishment Act (DSPE) is not applicable to the CBI is a "convoluted logic". Vahanvati said thousands of cases are pending. "I am told there are 9,000 cases pending and there are 6,000 people in the CBI. The judgement came on November 6 and its copy came to us yesterday." The day witnessed hectic activities with the government first filing its appeal in the court registry and seeking an urgent hearing at CJI's residence. The rival side, which had filed the caveat in the matter, also rushed to CJI's residence. 5, Krishna Menon Marg, the CJI residence, was the centre of attention where media persons, including TV crew and photographers, were stationed since morning tracking the story. The announcement about the evening hearing was made by a staff member of CJI at 12.50 pm when he reached his residence after attending a conference. (PTI)
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Snapping a three-day rising trend, gold prices fell by Rs 150 to Rs 31,250 per ten gram in the national capital on Saturday on stockists selling against drying up of demand on ending of festival season, amid a weak global trend. Silver declined further by Rs 200 to Rs 48,900 per kg on reduced offtake by industrial units and coin makers. Traders said stockists selling on fall in demand following ending of festivals like Diwali mainly influenced the sentiment. Weak global trend where gold dropped as payrolls in the US rose more than forecast in October and increasing speculation that the Federal Reserve may start reducing economic stimulus by the end of this year, reduced demand for precious metals as a safe haven, they said. Gold in New York, which normally set price trend on the domestic front, declined 1.8 per cent to $1,284.60 an ounce and silver by 1.6 per cent to $21.31 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 150 each to Rs 31,250 and Rs 31,050 per ten gram, respectively. It had gained Rs 300 in last three trade. Sovereign lost Rs 100 to Rs 25,100 per piece of eight gram. In line with a general weak trend, silver ready fell by Rs 200 to Rs 48,900 per kg and weekly-based by Rs 400 to Rs 48,150 per kg. The metal had lost Rs 215 yesterday. Silver coins also tumbled by Rs 1,000 to Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces on falling demand. (PTI)
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Union Finance Minister P Chidambaram on Saturday, 9 November, said government would 'very closely' focus on sectors prone to chronic service tax evasion like consultancy, IT and real estate. He said he had noticed chronic tax evasion in various cities (like Chennai) in contract service, maintenance and repair service and sectors like consultancy, IT, real estate, mining, transport operators, advertisement, storage and warehouse, manpower and recruitment and security services. The minister said he believed this was true all over the country. There was no reason to believe that if one sector was not paying the tax in Kolkata, that sector would be more compliant in Chennai, he said. "Those who are in these sectors must remember that the (Finance) Department will have a closer look. These are the tax evasion prone sectors. We are going to look at these sectors very, very closely", he said. The minister was speaking at an interactive meet on Trade and Industry, Service Associations and Chambers of Commerce and Industry on Voluntary Compliance Encouragement Scheme (VCES). Referring to the scheme, he said it was one of the most generous and fair packages offered by the Government. "I am assuming everyone is a honest citizen.You are honest in most actions. When you make a vow before your favourite deity, you are honest. You go and carry out the vow. You are honest while you are dealing with your spouse, children. Why should you be not honest with the tax department?", he asked. Urging members to pay the taxes, he said non payment might be out of ignorance or financial pressure. Taxes may have been paid over a period of time or completely stopped. "All that is being washed away by this scheme. The past will be completely closed". "No questions will be asked. You should file your declaration, pay taxes in the current period and you will not be obliged to pay any interest, any penalty or face any prosecution", he said. VCES had been introduced with effect from May 10, 2013 as a one time amnesty scheme for paying service tax dues for the period October 1, 2007 to December 31, 2012 without interest and penalty.(PTI)
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Indian factories increased production in September at the fastest pace since March ahead of an expected surge in demand during the country's festive season, according to a Reuters poll.Coal, electricity and cement production in particular, along with an uptick in demand for India's products abroad, are also expected to have contributed to overall factory output growth in September.Production at factories, mines and utilities in India likely rose 3.5 per cent annually in September, much faster than August's 0.6 per cent growth, a poll of 24 economists showed.Good factory growth in September would be welcome news for the struggling Indian economy, but some economists say momentum is unlikely to be sustained."The expectations are that overall, in order to meet the festive related demand, production would have been ramped up," said Upasna Bhardwaj, an economist at ING Vysya Bank.India's festive season usually begins in October and is characterised by increased spending on products ranging from sugar to gold to bigger items such as cars and electronic appliances.Production in the core sectors - also known as infrastructure output, which includes coal, electricity, cement, crude oil and steel factories - clocked a much higher growth rate in September.Output in those industries, which account for well more than one-third of overall factory production, rose 8.0 per cent annually that month versus 3.7 per cent in August, data released last week showed.Stronger demand from India's export destinations also led to an increase in production, with exports growing 11.15 per cent annually during September.Rising loan rates are one reason economists doubt September's numbers can be repeated."The banking sector is slowly increasing interest rates. The costs of funding are likely to put some amount of hit on the production side," said Golaka Nath, senior vice president of economic research at CCIL.The Reserve Bank of India raised its key interest rate for the second time in as many months in October to combat rising inflation.Bhardwaj of ING Vysya also warned that industrial production might not grow at as quick a pace in the months ahead."On an average, 2-2.5 per cent growth can be expected in the second half of this fiscal year," she said.(Reuters)
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The rupee is trading at 62.68/69 versus its close of 62.41/42, tracking the dollar's strength versus other Asian currencies and weakness in domestic shares.The BSE Sensex trading down 0.38 per cent.Most Asian currencies trading weaker compared with the dollar.The euro struggled in early Asian trade after the ECB's surprise interest rate cut sent the single currency plunging to near eight-week lows, but the dollar's gains were tempered ahead of the key US payrolls report later on 8 November.(Reuters)
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Indian Oil Corp has offered a rare light diesel oil cargo in the spot market, industry sources said on 6 November.The refiner is offering 6,000 to 8,000 tonnes of the oil product for loading from Budge Budge terminal from 26 November to 28. The tender closes on November 8 and is valid until 12 November.The refinery could be offering light diesel oil due to a drop in domestic consumption, an India-based industry source said. IOC last sold light diesel oil in late October and has only sold two cargoes before that, in February and April, in 2012, the source added.A second source said IOC is probably offering the product due to maintenance at secondary units. Light diesel oil can be used as feedstock in these units, the source added.Indian Oil had planned to shut some secondary units including a fluid catalytic cracking unit (FCCU) and a hydrocracker unit in November for maintenance.IOC officials could not be immediately reached for a comment.(Reuters)
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Notwithstanding the current economic uncertainty, Asia has recorded the largest increase in its billionaires club in the world with 18 new billionaires in 2013, making it the fastest-growing region, a report says.According to the Wealth-X and UBS Billionaire Census 2013, Asia saw the highest percentage rise in billionaire population (3.7 per cent from 2012) and total wealth (13 per cent) in 2013, making it the fastest-growing region.Wealth-X is a global wealth intelligence and prospecting company and UBS is a financial services major.The report noted that Asia is "driving the tectonic shifts in wealth globally" and added it would catch up with North America in five years.The study that focused solely on persons with a net worth of USD 30 million and above (after accounting for shares in public and private companies, residential and investment properties, art collections, planes, cash and other assets), said Asia has 44,505 ultra-high net worth individuals, whose total wealth amounted to $6,590 billion.As per the report, the global billionaire population reached a record 2,170 individuals in 2013. The average net worth of the world's billionaires stood at $3 billion.The billionaire population's combined net worth more than doubled from $3.1 trillion in 2009 to $6.5 trillion in 2013 - enough to fund the United States budget deficit until 2024, and greater than the GDP of every country except the United States and China.Interestingly, 810 individuals became billionaires since the 2009 global financial crisis, the report said.The report - which looks at the global billionaire population from July 2012 to June 2013 - examined this tier of the ultra affluent population by region, country, gender and the sources of their wealth.Europe is home to most billionaires (766 individuals). However, North America has the most billionaire wealth ($2,158 billion).Despite popular notions of billionaires being jet -setting, cosmopolitan individuals, most billionaires are still based in the same locations where they were raised.Around 60 per cent of billionaires are self-made, while 40 per cent inherited their wealth or grew their fortunes from inheritance.Only 17 per cent of female billionaires are self-made, while 71 per cent gained their fortunes through inheritance.(PTI)
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India should allow more foreign direct investment in defence production in order to speed up deliveries of hardware it badly needs for training and military operations, a senior air force officer said on 6 November' 2013. The world's biggest arms importer wants to reduce dependence on overseas suppliers and develop the domestic defence industry, but state-run manufacturers' track record is patchy and the government wants private Indian firms to have a greater say. But some air force officials also want to attract more foreign companies, and believe that a 26 percent cap on foreign direct investment (FDI) in defence production is putting potential partners off. "Now we have allowed 26 percent FDI in the defence sector. I do not think it is attractive for foreign industry," the Times Now TV channel quoted Indian Air Force's director general for flight safety, Air Marshal P.P. Reddy, as saying. "Why do we restrict FDI? We need to ponder over it." In July, India said a cabinet panel would consider proposals for foreign investment in defence above 26 percent, but only if it involved state-of-the-art technology. India wants to upgrade an outdated weapons systems to keep up with neighbours China and Pakistan in a Rs 6,23,400 Crores modernisation drive, but some of its biggest projects have been dogged by delays often blamed on corruption and bureaucracy. A Rs 75,270 Crores deal to buy 126 Rafale fighter jets from France's Dassault Aviation has been held up by differences over the role of a local manufacturer, state-run Hindustan Aeronautics Ltd (HAL). HAL, India's main aeronautics supplier, has been developing a light combat aircraft since the early 1980s with little success. And almost a decade after the maiden flight of its first prototype, the same company is struggling with its Intermediate Jet Trainer (IJT) project, according to local media. "Yes, there have been delays. IJT is delayed," Reddy said. "We desperately need these airplanes. The programme is delayed and therefore it is going to put the Air Force in a fine bind as to how we will continue our training."(Reuters)
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Asserting that there has been no change in its visa policy, the US on 5 November said Narendra Modi who has been named BJP's prime ministerial candidate is welcome to apply for a visa and wait for a review."No change in our longstanding visa policy. He's welcome to apply for a visa and await a review like any other applicant," State Department Deputy Spokesperson Marie Harf told reporters at her daily news conference."Visa applications are confidential, or at least the details of them. I can check on that, but not to my knowledge," Harf said when specifically asked if Modi has applied for a US visa.In 2005, Modi was denied a diplomatic visa and his existing tourist and business visa was revoked under the Immigration and Nationality Act, which makes a foreign government official responsible for severe violations of religious freedom ineligible for a travel document.(PTI)
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Flashing lights on the roof, tailgating politicians' motorcades, smashing up toll booths, and beating up toll collectors.Welcome to India's network of privately run highways, where endemic toll dodging is a drag on the finances of road operators such as GVK Power and Infrastructure and Reliance Infrastructure, and a deterrent to private investment in a country where poor infrastructure shaves an estimated 2 percentage points from economic growth each year.Ambulances, fire trucks and the cars of senior government officials are among those exempted from paying tolls, but other drivers often claim a free ride, said Isaac George, GVK's chief financial officer."If an MP (member of parliament) has to be exempted, it's not just his car that is exempted. The entire entourage which follows or goes in front seeks an exemption," he said. "The government has to do something because these are all revenue leakages."India's cash-strapped government wants private companies to double their share of the cost of building roads and bridges by 2017 from about a fifth in the last five years.Eight out of every 10 road projects, however, miss revenue expectations in their first year, with the shortfall as high as 45 percent, according to a 2012 study by Fitch Ratings. The slowing economy, and sometimes inflated forecasts, are partly to blame, but toll dodging is a significant factor, said Fitch India analyst S. Nandakumar."There is obviously resistance to tolling, particularly for brownfield or greenfield toll roads which have been tolled for the first time," he said.Theft, BeatingsThe resistance to paying tolls is part of a wider pushback against India's attempt to charge for services such as electricity that have been heavily subsidised or free, and which are plagued by under-investment.Drivers use threats, violence, protests and claims of powerful connections to demand toll exemptions. Road developers lose up to a tenth of their toll revenues because of dodgers, said Vishwas Udgirkar, an infrastructure specialist at consultancy Deloitte.IRB Infrastructure Developers could not levy tolls on one road for nearly two years due to protests in the western state of Maharashtra, where Mumbai is located. Charges began on 17 October, after a court ordered the local government to provide police protection.Last month, security camera footage showed 6 men, armed with rods, assaulting staff and stealing money from a toll booth outside New Delhi. Two years ago, a toll collector was shot dead during a payment dispute at a booth near Gurgaon, where cars are charged Rs 27 (44 cents).This lawlessness comes at an economic cost.The government awarded less than a fifth of its target for new road construction contracts to private companies in the last fiscal year, official data shows. GVK and GMR Infrastructure both pulled out of road projects stalled by bureaucracy. In July, local media reported that IRB pulled out of bidding for a harbour crossing in Mumbai because of its toll collection woes in Maharashtra.In a bid to tackle toll dodging and ease congestion at toll gates, Road Transport Minister C.P. Joshi said he wants all national highways to use electronic tolls by 2014.A senior government official, however, was less concerned."I won't deny this is an issue," he said, declining to be named as he did not want to publicly speak about the issue. "We are not concerned about his (a company's) loss of revenue. He should be concerned about it."Mafias And MinionsIndia's toll roads tend to be better maintained and less congested than public routes. But unlike in Europe, for example, private roads, and not state roads, tend to become the main route between cities, leaving drivers with little choice.This breeds resentment, especially if the road is pot-holed, unsafe or snarled by mind-numbing traffic.Raju, who lives in Delhi, used to put a red flashing light on his car to pass himself off as a lawmaker to avoid tolls. He's now befriended the driver of a genuine politician and often joins his entourage when travelling in northern India."They don't provide facilities, so why should I pay a toll?" said Raju, who declined to give his full name. Highways are often congested, he said, and once, when he had a flat tyre on his way to a funeral, he waited two hours before help arrived.Waiting for government help, and attitudes to shift, could take years.K. Ramchand, managing director at road builder IL&FS Transportation Networks Ltd, said one way to manage toll dodgers was to let them have their way in the early days of the project."Most of the toll deviants are ... cars normally owned by either the local mafia, the minister or his cronies," he said. "It's safer to keep them on your side and give them a free pass.""Otherwise what happens is, these 30-40 followers come on the toll plaza, make a noise and then everybody falls into that mob mentality and then it becomes a big issue," he added. (Reuters)
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