1. Urjit Patel Blames Govt, RBI and Banks Till 2014 for Bad Loan Mess
Failures of the central bank, the government and state-run lenders in the years till 2014 sparked India’s bad loan crisis, former Reserve Bank of India (RBI) governor Urjit Patel said, while putting up a strong defence of the actions of RBI under his watch.
In a presentation at Stanford University’s annual conference on Indian economic policy that touched upon bad loans, bank regulation and bankruptcy resolution, Patel warned against sweeping problems under the carpet, as it would only delay unlocking of capital and scuttle financing of future investments.
2. Economic Survey Lays out Blueprint for Growth to Make India a $5 Trillion Economy
The Economic Survey on Thursday, 4 July, prescribed a private investment-led growth strategy to achieve Prime Minister Narendra Modi’s vision of making India a $5 trillion economy.
The Survey said India needs to cut real interest rates, ease labour rules, reduce capital gains tax on startup investments and encourage infant firms to grow at a sustained 8% rate to reach the GDP target by 2024-25.
The 2018-19 Survey, authored by chief economic adviser in the finance ministry Krishnamurthy Subramanian, projected the Indian economy to grow at 7% in the year ending 31 March, slightly faster than 6.8% achieved in the previous year.
3. MCA Orders Fraud Probe Against Jet Airways
Even as the bankers are trying to resolve the insolvency at the debt ridden Jet Airways Ltd, the Ministry of Corporate Affairs (MCA) on Thursday order a probe by the Serious Fraud and Investigations office (SFIO).
A copy of the MCA order has been reviewed by Mint.
MCA in the order said that seven companies belonging to Jet Airways group of companies need for a formal fraud probe based on an inspection report. The report would be submitted in 6 weeks.
4. Essar Steel: NCLAT Approves ArcelorMittal's Bid With Modifications
The National Company Law Appellate Tribunal (NCLAT) on Thursday approved the resolution plan submitted by Lakshmi Mittal-led ArcelorMittal for Essar Steel India, but with modifications. Of the Rs 42,000-crore plan submitted by ArcelorMittal, the financial creditors would now get about Rs 30,030 crore while the operational creditors would get Rs 12,000 crore, the NCLAT said, holding both the classes of creditors would get 60.7 per cent of their admitted claims.
A two-member Bench of the appellate tribunal headed by Chairperson Justice S J Mukhopadhaya also reprimanded the committee of creditors (CoC) for discriminating against the operational creditors and other financial creditors such as Standard Chartered Bank (StanChart).
(Source: Business Standard)
5. Telcos, Not Trai or Govt, Will Decide Spectrum Price: Trai Chief R S Sharma
The Telecom Regulatory Authority of India (Trai) is studying the comments of the Digital Communications Commission (earlier Telecom Commission) before sending its review on the reserve price and quantum of spectrum to be sold in the upcoming auctions.
“We would refer our comments back as soon as possible,” Trai Chairman R S Sharma told Business Standard in an interview on Thursday, 4 July.
He declined to indicate what his review decision would be on spectrum pricing.
(Source: Business Standard)
6. US Drags India to WTO for Its Retaliatory Tariffs on 28 American Products
Weeks after India raised duties on 28 American goods, the US on Thursday, 4 July, dragged New Delhi to the World Trade Organization (WTO) for according “less favorable treatment” to its products.
India, on 15 June, levied higher tariffs on American apples, walnuts, chickpeas, lentils, boric acid and diagnostic reagents after deferring them multiple times in the last one year in response to the US imposing a global additional tariff of 25% and 10% on import of steel and aluminium products, respectively, in March last year.
(Source: The Economic Times)
7. Banks See Whopping 73% Spike in Frauds at Rs 71,543 Cr in FY19
Banks have reported a massive 73 percent increase in incidents of fraud worth Rs 71,543 crore in FY19, a senior Reserve Bank official said on Thursday, 4 July.
Till March 2019, the top five, 10 and 100 cases of frauds cumulatively reported constituted 24 per cent, 34 per cent and 70 per cent of all frauds, respectively, a Chief General Manager with the RBI Jayant Dash said. In FY18, the banks had reported frauds worth Rs 41,167 crore, he added.
8. Amazon Plans to Shut Down 2-Hour Delivery App 'Prime Now' in India
Global e-commerce giant Amazon is planning to shut down its Prime Now app in India, after failing to gain traction among Prime members and not being able to refine the business and logistics model in the country, sources in the know said.
The Prime Now app sends, at no delivery charge and in two hours, stuff such as groceries, electronics, home, and kitchen essentials in select cities to members of Amazon Prime, a paid subscription service.
Amazon India has around 10 million Prime members.
(Source: Business Standard)
9. HC Extends Status Quo on Cognizant Tax Dispute Matter
The Madras High Court on Thursday, 4 July, ordered that the the status quo granted by a single-judge bench in connection with IT major Cognizant Technology Solutions India's Rs 2,912-crore dividend distribution tax dispute with the Income Tax department will continue.
A division bench comprising Justice M M Sundresh and Justice M Nirmal Kumar gave the interim order when an appeal by the company against the 25 June order of single judge on the matter came up for hearing.
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