Wednesday, November 27
Finance Minister Nirmala Sitharaman informed the Rajya Sabha that the Enforcement Directorate has confiscated assets worth Rs 15,186.64 crore under the prevention of money laundering law, with almost all of it being restituted to public sector banks. Legal actions are being taken against defaulters, resulting in the recovery of Rs 33,801 crore. Sitharaman explained that 'Phone Banking' referred to political interference during the UPA rule of 2004-2014, where calls were made to banks to grant loans without considering eligibility. The minister also highlighted the decline in NPAs and the improvement in the Indian economy under the Modi government's measures.
McDonald's decision to take greater control of its China business and expand aggressively is seen as risky but potentially rewarding. Its majority partner in China, CITIC, provides political cover, which is important given the geopolitical situation. Starbucks, Apple, Coach owner Tapestry, and Nike are also dedicated to the China market. McDonald's has used funds from the Carlyle investment to double its restaurant count and aims to have over 10,000 stores in China by 2028. Competitors like Yum China, Wallace, and Tastien are also expanding in China.
The Bombay High Court dismissed a petition filed by Serum Institute of India Pvt Ltd challenging a 2016 amendment to the Income Tax Act, 2015. The amendment included subsidies, grants, and incentives as 'income'. The High Court upheld the constitutional validity of the amended provision, stating that taxation is an economic reality that every business entity must contend with. The court warned that granting tax exemptions to loss-incurring entities could open floodgates for manipulations. The court emphasized that the mere fact that a tax falls more heavily on certain goods or persons does not invalidate it.
The GoAir revival saga may soon come to an end as the Committee of Creditors (CoC) decides whether to opt for liquidation or invite a second round of expression of interest (EOI). The airline, owned by the Wadia Group, stopped flying in May 2023 and filed for voluntary insolvency. With the 270-day deadline approaching, the chances of a second round of EOI seem unlikely. The fate of the aircraft and engines, excluded from assets under the Insolvency and Bankruptcy Code, is yet to be decided by the courts.
Prime Minister Narendra Modi's party winning key state elections boosts India's appeal for foreign investors and inflows into local equities. The results ensure policy continuity, lift prospects for the stock market, and increase investor sentiment. The victory also reinforces expectations of a Modi win in the 2024 national elections. The stable political environment and convincing growth policies attract more money into the market. Market participants expect the Sensex to reach new highs and the benchmark Nifty to attain 20500-20800 levels.
Byju Raveendran, founder of Byju's, pledged his family's homes in Bengaluru and an under-construction villa in Epsilon as collateral to borrow $12 million to pay salaries to employees. The company is fighting to keep afloat amid financial pressures, including a legal battle with creditors over a missed interest payment on a $1.2 billion term loan. Raveendran has raised personal debts of $400 million and plowed back $800 million into the company. Byju's recently sold its US-based kids' digital reading platform for about $400 million.
The Reserve Bank is likely to maintain the status quo on the short-term interest rate in its monetary policy review later this week, with inflation staying in comfort zone and economic growth moving at an accelerated pace, opined experts. The RBI has left the benchmark policy rate (repo) unchanged in its past four bi-monthly monetary policies. RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) is scheduled to begin its three-day deliberations on December 6.
Delhi airport operator DIAL plans to levy higher charges from airlines for grounded aircraft as they occupy available parking space and impact overall operational efficiency, amid rising instances of grounding of planes due to technical and other issues. "We are planning that in the next traffic calculation, we are going to request that for people who are grounding (aircraft) here for more than a certain period, there should be some sort of higher charges because otherwise it disturbs the operations of other airlines," DIAL CEO Videh Kumar Jaipuriar told PTI.
The government has received FDI proposals worth about Rs one lakh crore from countries sharing land border with India since April 2020. Half of these proposals have been cleared so far, while the remaining are pending, withdrawn, or rejected. To curb opportunistic takeovers, the government made prior approval mandatory for foreign investments from these countries. An inter-ministerial committee is scrutinizing the pending proposals, which include sectors like manufacturing, software, trading, and e-commerce.
