NCLT
CANNOT DECIDE INTER-SE CLAIMS BY PARTIES OVER ASSETS OF CORPORATE DEBTOR :
NCLAT
The inter-se claims by parties over assets of
the corporate debtor cannot be determined by the Adjudicating Authority under
the Insolvency and Bankruptcy Code, held the National Company Law Appellate
Tribunal. The NCLAT was dealing with appeals by two companies who contended
that the Resolution Professional had wrongly treated the articles handed over
by them to the corporate debtor as its assets. They filed applications under
Section 60() IBC before the NCLT to establish their respective claims over the
articles. According to them, the articles were given to the corporate debtor
for contract work. The corporate debtor held them in the capacity of a bailee,
and not as full owner. So, the articles cannot be regarded as the assets of the
corporate debtor, argued the appellants The NCLT rejected the applications
holding that the dispute was outside the purview of IBC. In appeal, the NCLAT
affirmed the rejection. It was noted that there were claims and counter-claims
over the disputed articles by several parties. The Resolution Professional
reported that apart from the Appellants, other parties have also made claim
that the same very material belongs to them. As the claim is not against the
Corporate Debtor or its subsidiaries but includes inter-se claim for the same
very material, such dispute cannot be decided by the Adjudicating Authority
under Sub-section (5) of Section 60of the I&B Code, the Tribunal observed.
Referring to its judgment in Binani cements case, the NCLAT observed that
Corporate Insolvency Resolution Process is not a money claim nor a suit or a
litigation. Since moratorium is in force during insolvency proceedings, the
claimants have to wait till the completion of process for filing suit to
establish their claims. It is only after completion of the period of moratorium
and it is finally decided that the material belongs to the Corporate Debtor and
order is accordingly passed, it is open to the persons to file a suit before
appropriate forumclaiming right and title over the material in question and for
filing such suit claiming right over the material the moratorium period has to
be excluded for the purpose of counting the period of limitation, held the
Tribunal bench headed by Justice S J Mukhopadhyay. we hold that the
Adjudicating Authority has no jurisdiction to decide the claim or counter claim
with regard to the parties and therefore the Adjudicating Authority has rightly
not passed any order on the applications preferred under sub-section (5) of
Section 60 22, the NCLAT concluded.
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TATA STEEL'S
APPEAL IN BHUSHAN POWER IS PREMATURE AND UNCALLED FOR: NCLAT
The NCLAT has turned down Tata Steel’s appeal
against an NCLT order passed in April 2018, which directed Bhushan Power and
Steel’s Resolution Professional (RP) and Committee of Creditors (CoC) to consider
the resolution plan submitted by Liberty House. By the end date for submission
of resolution plans (February 8, 2018), Tata Steel and JSW Steel had submitted
their resolution plans. Liberty House, however, submitted its resolution plan a
few days later. The NCLT in April, 2018 directed the RP and CoC to consider the
resolution plan submitted by Liberty House. The present appeal is a challenge
to the NCLT order. However, during the month of August, 2018, the NCLAT also
passed orders allowing submission of ‘revised financial offers’, by ‘all’
resolution applicants. Tata Steel, while submitted a revised financial offer to
stay in the race, also objected to this direction of the NCLAT. More recently,
the CoC has by a 97.12 % majority voted in favour of JSW Steel’s resolution
plan. The NCLAT, while disposing of this appeal, heavily relied on its judgment
passed in the case of Binani Cements, and the Supreme Court’s judgement in the
case of Essar Steel. The Bench made the following two broad observations
insofar as the insolvency process is concerned:
1) Before the approval of a resolution plan,
there is no vested right or fundamental that accrues to any resolution
applicant. However, if the resolution plan has been approved by the NCLT, the
resolution applicant will have the statutory right to appeal.
2) The improved financial offer submitted by
a resolution applicant is a continuation of the resolution plan. The NCLAT
further noted the contents of the process document to find that the CoC had the
absolute discretion to update, amend or supplement the information, right to
change, delay or otherwise annul or cease the resolution process.
In view of the aforesaid observations, the
NCLAT then recorded, In this background, while we hold that this appeal
preferred by ‘Tata Steel Limited’ is premature, uncalled for, in absence of any
final decision taken by the NCLT under Section 31, this appeal is also not
maintainable. The NCLAT, while dismissing the appeal, remitted the case back to
the NCLT and directed the RP to ‘immediately place the ‘approved Resolution
Plan’ before the NCLT for its order‘. Much like the NCLAT did for Essar while
remitting the case back to the NCLT, it has established the jurisdiction of the
NCLT for disposing of the resolution plan application. The NCLAT ruled that, at
the time of consideration of the approved ‘Resolution Plan’ of ‘JSW Steel’, the
NCLT will only ensure that all the stakeholders, particularly the ‘Operational
Creditors’ are treated similarly. In case, the Adjudicating Authority is of the
opinion that the discrimination has been made between the ‘Financial Creditors’
and the ‘Operational Creditors’, it may give opportunity to the ‘JSW Steel’ to
improve its plan and thereby, by substituting the approved ‘Resolution Plan’
with such improvement, the Bench ruled. By doing so, all that the NCLT can now
adjudicate on, is the resolution plan submitted by JSW Steel, within the
boundaries set by the NCLAT: that is of ensuring fairness of treatment provided
to creditors.
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NCLAT
BARS RCOM FROM SELLING ASSETS TILL FEBRUARY 12
Difficult times still continue to dog
Reliance Communications (RCom), with the National Company Law Appellate
Tribunal (NCLAT) restricting the beleaguered telecom operator from selling its
assets till February 12. The appellate tribunal passed the order in a petition
filed by RCom and stated that RCom or any third party should not sell, transfer
or alienate any of its assets (movable and immoveable), without its or the SC’s
permission. An RCom official, however, downplayed the impact saying that the
ruling was mostly a process and procedure, rather than a restriction. The
appellate tribunal has given Ericsson time till February 8 to file its reply, while
the next hearing has been posted for February 12. RCom is restricted from
selling its assets till the next hearing and has also been prevented from
invoking any bank guarantee. Meanwhile, in a reprieve to RCom, the Telecom
Disputes Settlement and Appellate Tribunal (TDSAT) directed the Department of
Telecommunications to return a ₹2,000-crore
bank guarantee provided earlier. This is as per TDSAT’s earlier order passed on July 3, 2018. The
tribunal, hearing an RCom petition against DoT on the one-time spectrum charge
issue, stated that up to 5 MHz of OF CDMA and up to 6.2 OF MHz GSM contracted
spectrum have been exempted from one-time levies. In July 2018, TDSAT directed
DoT to release the bank guarantees that RCom had provided in 2016 for spectrum,
based on RCom’s appeal.
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RCOM GOES
TO NCLT TO SPEED UP JIO DEAL, HOPES MOVE WILL EXPEDITE DOT NOD
Reliance Communications' (RCom's) shares
crashed 50 per cent as soon as the markets opened on Monday, reacting to the
company's Friday announcement that it would file for insolvency in the National
Company Law Tribunal (NCLT). Sources said this move, however, boosted hopes of
the debt-laden firm being able to sell its spectrum and fibre optics assets to
Reliance Jio (RJio) soon. As the matter moves to the NCLT, the Department of
Telecommunications (DoT) nod will come earlier. The DoT is also a creditor and until
the deal (worth Rs 25,000 crore) goes through, no lender will get anything said
a source in the company who did not want to be named. He added the deal was
unlikely to be annulled. The company also got relief from the Telecom Disputes
Settlement and Appellate Tribunal (TDSAT), which on Monday asked the DoT to return
bank guarantees to the tune of Rs 2,000 crore to RCom. The tribunal also said
the spectrum charge levied by the DoT was invalid. The move to the NCLT, the
company had said, would help in a time-bound resolution of the debt — a goal it
has not been able to achieve in the past 18 months. Before this, in January
last year, RJio (owned by Mukesh Ambani) and RCom (led by his younger brother
Anil Ambani) locked horns in the Supreme Court over the payment of
spectrum-usage charges. Both denied responsibility for it. Sources said the DoT
was still waiting for the two parties to settle differences before providing
the no-objection certificate.
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ANIL
AMBANI'S RCOM SEEKS WITHDRAWAL OF ERICSSON PLEA FROM APPELLATE TRIBUNAL
Anil Ambani-driven Reliance Communications
(RCom) Monday sought withdrawal of its petition to the National Company Law
Appellate Tribunal (NCLAT), and wanted to pursue the resolution plan through
the National Company Law Tribunal (NCLT). Reliance Communications Limited moved
the National Company Law Appellate Tribunal for withdrawal of its appeal, to
pursue the resolution plan through the National Company Law Tribunal process,
the company in a statement Monday said. The NCLAT, following RCom's plea
admission, directed Swedish gear maker Ericsson to file its reply in the matter
by 8 February. NCLAT further listed the matter for hearing on 12 February 2019.
The tribunal also prohibited RCom’s guarantors and any third party from
invoking any guarantee, mortgage or any other instrument, without NCLAT’s or
Supreme Court’s prior permission. The TDSAT also directed the department to
return telcos’ bank guarantee (BG) of Rs 2,000 crore, as per its earlier order
passed on 3 July 2018.
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NCLAT
ASKS GOVT FOR LIST OF IL&FS FIRMS CATEGORISED BY FINANCIAL POSITION
The National Company Law Appellate Tribunal
(NCLAT) on Monday directed the central government to submit a list of
subsidiaries of the Infrastructure Leasing & Financial Services
(IL&FS), categorised by their ability to meet payment obligations as
decided by the newly constituted board of the company. The appellate tribunal
also asked the government to contact former Supreme Court judge D K Jain to be
the supervisor of the operation of the resolution process. In a meeting that
took place last month between the newly constituted board of the IL&FS
group, its financial creditors, and the executives of the Ministry of Corporate
Affairs, Kotak Mahindra Bank Managing Director and Chief Executive Officer Uday
Kotak -- the non-executive chairman of IL&FS group -- said the board had
classified the IL&FS group companies into three categories -- green, amber and
red. The companies under the green category are those still operating with a
positive net worth and have enough cash flows to meet their one-year payment
obligations to all creditors. Those under the red category are not in a
position to repay even secured creditors. Firms under the amber category have
adequate cash flow for payment to secured creditors, but not enough to meet the
claims of unsecured creditors. At the meeting, it was decided that the
green-category companies will continue to service their debt. Companies marked
red would enjoy full moratorium. The companies under the amber category will
not serve any debt obligation until the resolution process of the entire group
is completed. The resolution process will be similar to a corporate insolvency
resolution process under the Insolvency and Bankruptcy Code, and will ensure
the seniority of lenders to such special purpose vehicles (SPVs) is maintained,
the affidavit filed by the company with the NCLAT showed. Moreover, the balance
funds of the companies under the amber category will be kept in an escrow fund
at the SPV level and would be used for distribution among creditors when the
SPV goes for resolution. Also, it was decided that attempts would be made to
form a committee of creditors during the resolution process. And the resolution
plan, agreed to by all, will have to be made public for the knowledge of all
stakeholders concerned through an affidavit filed by the Government of India
before the NCLAT. The next hearing will be on February 11.
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RUIA,
ESSAR STEEL DIRECTORS MOVE NCLT TO SQUASH MITTAL'S BID
Further delaying the already- delayed
resolution process for the Essar Steel, Essar Group director Prashant Ruia has moved
a fresh application before NCLT here seeking to set aside the ArcellorMittal
bid to take over the crippled company citing a Supreme Court judgement. The new
petition before the National Company Law Tribunal (NCLT) here was moved on
February 1 by former managing director of Essar Steel Dilip Oommen along with
its project director Rajiv Kumar Bhatnagar, as well as Ruia. This fresh move by
the Essar Steel directors came after the NCLT-Ahmedabad had on January 29
rejected the debt settlement proposal put forth by the Essar Steel Asia
Holdings despite it being much higher at Rs 54,389 crore than the former's Rs
42,000-crore bid, citing the January 31 Supreme Court judgement in the Ruchi
Soya case. The petition says though Oommen and Bhatnagar were removed after the
insolvency process began, they still continue to be part of the day-to-day
management of Essar Steel and hold the designations of managing director and
director (projects), respectively. The NCLT bench comprising Manorama Kumari
and Harihar Prakash Chaturvedi said it will decide Tuesday whether the petition
will be admitted or not.
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TDSAT
DISPUTES TRIBUNAL EXEMPTS RCOM FROM ONE-TIME SPECTRUM CHARGE
Reliance Communication Ltd said on Monday
that the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has exempted
the company's spectrum holdings in CDMA and GSM bands from a one-time spectrum
charge (OTSC). TDSAT also directed the Department of Telecommunications (DoT)
to return a 20 billion rupees ($278.55 million) bank guarantee made by the
debt-laden company, RCom said. TDSAT upheld Rcom's petition against DoT,
challenging DoT's decision to impose one-time spectrum charge (OTSC) on its
contracted CDMA and GSM spectrum resources.
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NCLT TO
DECIDE ON ARCELOR MITTAL’S RESOLUTION PLAN FOR ESSAR STEEL BY FEBRUARY 11
The National Company Law Appellate Tribunal
(NCLAT) on Monday directed the NCLT Ahmedabad bench to take a final decision
over Arcelor Mittal’s ₹42,000
crore resolution plan for Essar Steel by February 11, failing which it would
call records and pass order accordingly. A two-member bench headed by Justice S
J Mukhopadhaya has directed to list the matter on February 12. If no order is
passed by 11th February, 2019, this Appellate Tribunal may call for records and
pass appropriate order under Section 31 of the I&B Code, said NCLAT. The
NCLAT said that a detailed hearing is not required to be given including all
the creditors by the Ahemdabad bench and it should be completed within five
days. In its order, the NCLAT has also directed NCLT to also hear the Standard
Chartered Bank, which is opposing the resolution plan approved by the Committee
of Creditor (CoC) of Essar Steel and the resolution professional of the
company. Further, the dissenting member of the CoC (Standard Chartered Bank
herein) having raised objection to the Resolution Plan, it should be given
hearing before passing any final order, NCLAT order said. Standard Chartered
Bank, the third-largest secured financial creditor of Essar Steel, has filed
plea before the NCLT alleging that the resolution plan does not comply with the
Insolvency and Bankruptcy Code. The NCLAT direction came after an application
filed by Arcelor Mittal, whose ₹42,000
crore takeover proposal of the indebted steel-maker has been approved by the
CoC and is pending before the NCLT for approval.
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NCLAT
TURNS DOWN TATA'S PLEA TO BID FOR BHUSHAN POWER AND STEEL
The national company law appellate tribunal
has turned down a plea by Tata Steel to consider its bid for bankrupt Bhushan
Power and Steel as the most legitimate bid for the company at a ruling on
Monday. The tribunal's chief, Justice SJ Mukhopadhaya ruled that Tata's plea
was premature and unmaintainable and upheld the right of the committee of
creditors to update, amend, modify or annul resolution plans with respect to
conditions outlined in a process document. The Tata's had approached the bankruptcy
appellate tribunal on the grounds that UK's Liberty House, a suitor that
submitted a late bid for Bhushan Power and Steel, should be disqualified from
the bidding process because it did not adhere to the guidelines laid out in the
process document. Tata submitted its offer well within the deadline of February
08 last year for submission of financial bids for Bhushan Power and Steel, a
company that was amongst RBI's first list of troubled accounts that were
submitted for proceedings under the new bankruptcy laws. Tata Steel or Liberty
House could not be reached for comment. The appellate bankruptcy court directed
the resolution professional, Mahender Khandelwal, who is tasked with
administering the company, to submit the best proposal to the National Company
Law Tribunal.
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ANOTHER
TWIST IN ESSAR STEEL CASE AS BPCL SEEKS ITS LIQUIDATION AT NCLT
In a yet another turn to the insolvent Essar
Steel Ltd (ESL) case, one of its operational creditors (OCs), Bharat Petroleum
Corporation Limited (BPCL), on Monday sought the steelmaker's liquidation at
the National Company Law Tribunal (NCLT)'s Ahmedabad bench. BPCL objected to
the Rs 42,389 crore resolution plan of ArcelorMittal which has been approved by
92 per cent of ESL's Committee of Creditors (CoC) before NCLT's two-members
bench, consisting of adjudicating authorities Harihar Prakash Chaturvedi and
Manorama Kumari. BPCL's legal counsel argued that if sent into liquidation,
there was possibility for it to recover in full its dues worth Rs 500 crore
since the promoters, whose settlement proposal of Rs 54,000 crore under Essar
Steel Asia Holding Ltd (ESAHL) was rejected by CoC, were willing to pay in full
to all creditors BPCL is claiming the dues against Essar Steel's alleged
violation of their take-or-pay gas supply contract since 2016. My submission is
that NCLT should take Essar Steel into liquidation because it is misplaced
assumption that in liquidation it will not fetch the full price. I, as an OC,
may get my full due. Buyers may be prepared to pay full under liquidation if
the company need to be taken to liquidation then so be it, BPCL's legal counsel
told the Ahmedabad bench of NCLT. However, the counsel was quick to add that
BPCL was not certain what amount it would eventually get under liquidation. Countering
BPCL's arguments, the resolution professional (RP)'s legal counsels told NCLT
the possibility of creditors getting paid in full under liquidation was thin.
Nobody has challenged the liquidation value of Rs 15,000 crore, RP's counsel
told the bench. Under the current liquidation value, none of the creditors will
get anything except employees and secured financial creditors, as against
ArcelorMittal's Rs 42,000 crore resolution plan which will put that money back
into the economy, as per RP's counsel. Currently, under ArcelorMittal's
resolution plan, any operational creditors with dues worth more than Rs one
crore weren't likely to be paid anything, the counsel added. Further,
challenging BPCL's claims of dues worth Rs 500 crore as against alleged
violation of take-or-pay gas supply contract, RP's counsel told the bench that
this did not fall under the ambit of the resolution plan as it was yet to be
decreed as a debt by any authority. While, as per an affidavit submitted with
the NCLT, GPI Textiles' CoC have categorically chosen to not seek such a
quashing, the RP's counsel told Ahmedabad bench that he was acting independent
of CoC in public interest. However, the Ahmedabad bench on Monday asked GPI
Textiles' resolution professional (RP) to appear in person to clarify his
stance.
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PNB POSTS
7% YOY RISE IN Q3 PROFIT AT RS 247 CRORE, NPA EASES TO 16% SEQUENTIALLY
State-run Punjab National Bank on Tuesday reported
a 7.12 per cent year-on-year (YoY) jump in net profit at Rs 246.51 crore for
the December quarter, beating Rs 9,800 crore loss estimated by analysts. The
bank had reported Rs 230.11 crore profit in the year-ago quarter. Net interest
income (NII), which is the difference between the interest income a bank earns
from its lending activities and the interest it pays to depositors, came in at
Rs 4,289 crore for the quarter, largely in line. Gross non-performing assets
(NPAs) eased to 16.33 per cent for the quarter from 17.16 per cent in September
quarter. The company 's NPAs stood at 12.11 per cent in the year-ago quarter.
The bank made Rs 2,753.84 crore worth of provisions and contigencies in the
December quarter, compared with Rs 9757.90 crore in September quarter and Rs
4,466.68 crore in the year-ago quarter.
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EMAAR MGF
BECOMES THE LATEST TO JOIN NCLT QUEUE
Emaar MGF Land Ltd has become the latest
developer to join the insolvency club after the National Company Law Tribunal
(NCLT) Delhi ordered the merging of all cases against it and ordered all
peititoners to file claims before the resolution professional (RP) appointed by
it. A home buyer who bought an apartment in one of its projects called Palm
Greens in Gurugram for Rs 91 lakh had moved court, pleading that even though he
paid Rs 88.49 lakh, the flat was not delivered to him within the promised time
as per the builder-buyer agreement. On the top of that there was no
compensation paid to the buyer. Many more homebuyers have joined him with
petitions gainst the developer since. It is needless to state that the
resolution professional shall consider their claim in accordance with the law.
If the order of admission is set aside by any Supreme Court then an application
for revival of the petition would be competent, said presiding Judge MM Kumar.
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CLEAR
WINNER: JSW STEEL FAVOURITE IN RACE FOR BHUSHAN POWER AND STEEL AS NCLAT
REJECTS TATA PLEA
Paving the way for JSW Steel to take over
Bhushan Power and Steel (BPSL), the National Company Law Appellate Tribunal
(NCLAT) on Monday dismissed Tata Steel’s objections that lenders had given the
Sajjan Jindal-led firm undue chances to revise its bid even after declaring
Tata Steel as the preferred bidder. We hold that Tata Steel’s appeal is
premature, uncalled for. The appeal is also not maintainable a two-member NCLAT
bench, headed by Justice SJ Mukhopadhaya, ordered. The appellate tribunal’s
order comes even as BPSL’s promoters have written to the the Committee of
Creditors (CoC) offering to pay their entire dues of over a period of 17 years,
sources said. The appellate tribunal observed that it was the prerogative of
the CoC to update, modify, amend, annul or cease the resolution process at any
point of time with respect to the conditions in a process document. Financial
creditors accounting for a 97.12% voting share in the CoC have approved JSW
Steel’s plan. Since all of them voted in favour of JSW Steel, the NCLAT held
that the resolution plan has been approved by 100% voting shares. Lenders
having 2.88% share abstained from voting. JSW Steel has offered to pay Rs
19,350 crore to the financial creditors of the debt-ridden BPSL, implying a
near 60% haircut for lenders. Apart from this, the Sajjan-Jindal promoted
company has offered to pay operational creditors a sum of Rs 350 crore against
their admitted claims of Rs 733 crore. Tata Steel’s total bid is for an amount
of Rs 17,000 crore.
NCLAT has also asked the RP (resolution professional)
to submit immediately the approved plan before the National Company Law
Tribunal (NCLT). The NCLT will pass an order after evaluating the bid and
keeping in mind the interests of operational creditors. NCLAT’s order will
expedite resolution of BPSL, which was admitted by the New Delhi bench of the
NCLT on July 26, 2017 for the initiation of the corporate insolvency resolution
process (CIRP), on the plea of Punjab National Bank. A clutch of 34 financial
creditors have claimed Rs 47,303 crore from the company as on January 3, 2019,
of which, the RP has admitted claims worth Rs 47,150 crore. Operational
creditors, numbering 1,778, have claimed Rs 2,320 crore from BPSL though the
admitted amount is Rs 733 crore. Though late-entrant Liberty House was in the
reckoning for BPSL, the race was primarily between JSW Steel and Tata Steel.
Lenders on July 31, 2018 selected Tata Steel as the H1 bidder and JSW Steel as
the H2 bidder for BPSL. This was done at the instance of the appellate tribunal
which on July 20, 2018, asked the CoC to select the H1 and H2 bidders. However
on July 27, 2018, the CoC allowed JSW Steel to submit a revised bid. Tata Steel
challenged the CoC’s decision in NCLAT on July 30, 2018.
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JUSTICE
DK JAIN APPOINTED TO OVERSEE IL&FS ASSET SALE
The National Company Law Appellate Tribunal
(NCLAT) has given its consent to appoint Justice (Retd) DK Jain to supervise
the operation of the resolution process undertaken by debt-laden IL&FS. We
allow the learned Counsels for Union of India and IL&FS to contact Hon’ble
Justice (Retd) DK Jain for consent and to discuss the terms and conditions of
engagement including monthly fee, travelling expenses, allowance, etc, NCLAT
said. The new board of IL&FS has proposed a multi-pronged strategy to
revive the beleaguered company, including significant capital infusion at the
group level from credible and financially strong investors, selling of
subsidiaries at the vertical level and resolution at the asset level.
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WILL USE
NOTA IF NO FUNDS GIVEN TO FINISH PROJECTS: NOIDA HOMEBUYERS
Claiming that they have been disappointed by
the Union budget as it did not allocate a stress-fund to complete stranded
residential projects in Noida, over 200 homebuyers under the umbrella body of
Noida Extension Flat Owners Association (Nefowa) launched a social media
protest #SayNoToNeta #SayYesToNota on Sunday. The buyers claimed they have been
misled by politicians in the past and despite considerable litigation, the
government has failed to resolve the issue of projects like Amrapali which has
over 25,000 buyers who have not been given their flats despite having paid up
70% to 90% of the cost. The Nefowa gathering had a significant representation
from buyers of Amrapali group. We were hopeful that the Union government would
ration some amount to help agencies like the NBCC to complete the pending
projects of Amrapali. An initial fund support for the government has to be
created for anyone to step in and complete the pending work. We had been
demanding a stress-fund for this completion as no agency can help without
initial financial support, Abhishek Kumar, president, Nefowa, said. The
campaigns will now be held on ground during week-ends. However, the social
media campaigns will be carried out all the time. We want our demands to reach
the government and we will not cast our votes if definite solutions are not
created. We will go and press NOTA button at polling booths, Shweta Bharti,
general secretary, Nefowa said.
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NEARLY
14L NSE SHARES UP FOR SALE
Homegrown financial services firm IIFL has
been mandated to sell nearly 14 lakh shares of National Stock Exchange,
representing close to 0.3% of the total equity base of the country’s largest
bourse in terms of turnover. In the last reported transaction for NSE shares,
in March last year, government-run IFCI had sold a 0.22% stake in the bourse at
the rate of Rs 874 per share. At Rs 900 per share, the stake that IIFL is
selling would be valued at about Rs 125 crore. IIFL said bids were invited from
parties to purchase up to 13,92,380 shares of NSE. It said the stake was being
sold on behalf of one of its clients. The bids, from eligible buyers, should be
submitted by February 7, the advertisement said. It also said that NSE was not
a party to the transaction but the bourse had the right to approve or reject a
potential bidder.
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ESSEL
PROMOTER ENTITIES SELL SHARES WORTH OVER RS 1,050 CR IN 6 LISTED FIRMS
Essel group's promoter entities have sold
shares worth over Rs 1,050 crore in six listed group firms in the open market
between January 25 and February 1, 2019. According to multiple regulatory
filings by different promoter group entities of Essel group, shares of Zee
Entertainment Enterprises, Dish TV, Zee Media Corporation, Siti Networks Ltd
and Zee Learn were sold in open market. Essel group raised the largest amount
of Rs 874.11 crore through sale of stake in its flagship firm Zee Entertainment
Enterprises by its promoter entities Cyquator Media Services Pvt Ltd and Essel
Corporate LLP selling 1.69 per cent and 0.85 per cent stake respectively
between January 25 to February 1, 2019. Other promoter group firms World Crest
Advisors LLP (0.86 per cent), Direct Media Distribution Ventures (0.80 per
cent) and Veena Investments Pvt Ltd (0.35 per cent) sold shares worth Rs 97.34
crore in Dish TV during the period. In Zee Media Corporation, ARM Infra &
Utilities Pvt Ltd (2.38 per cent) and 25FPS Media Pvt Ltd (3.09 per cent) sold
shares worth Rs 45.05 crore. ARM Infra & Utilities Pvt Ltd (1.41 per cent)
and 25FPS Media Pvt Ltd (3.09 per cent) sold shares worth Rs 2.90 crore in
Diligent Media Corporation Ltd. Arrow Media & Broadband Pvt Ltd sold 4.50
per cent stake in Siti Networks for Rs 28.88 crore on January 28. Jayneer
Infrapower & Multiventure Pvt Ltd sold 0.34 per cent stake in Zee Learn for
Rs 2.92 crore in open market. Transaction value have been calculated based on weighted
average price of the stock on the day of sale and the number of shares sold.
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APPELLATE
TRIBUNAL DIRECTS NCLT TO CLEAR RTIL CASE IN TWO WEEKS
The appellate tribunal has directed the
National Company Law Tribunal (NCLT) in Mumbai to complete the proceedings in
the RTIL — formerly Reid & Taylor (India) Ltd — bankruptcy case within two
weeks This is in view of the mandatory 270-day deadline provided to complete a
resolution process under the Insolvency and Bankruptcy Code, 2016. In the RTIL
case, the timeframe expired on January 1. At its hearing on Friday, the
National Company Law Appellate Tribunal (NCLAT) noted the main submission of
the appellant, Finquest Financial Solutions, that no entity could approach the
tribunal for the first time after the deadline. On Thursday, a new investor,
New Delhi-based Indian Gas, informed NCLT’s Mumbai Bench of its decision to bid
for the beleaguered company, even as Gujarat-based CFM Asset Reconstruction
(CFM ARC) withdrew from the race. Indian Gas had staked a claim stating it had
a net worth of ₹1,500
crore. The NCLT bench of Bhaskar Pantulu Mohan and V Nallasenapathy directed
the new bidder to appear before NCLAT on Friday and explain its bona fides and
interest. India Gas was permitted to take part in the resolution process
following the exit of CFM ARC. The tribunal also ordered that the deposit
amount of ₹2 crore be refunded to CFM
ARC.
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CREDITORS
PANEL APPROVE JNPT'S BID TO BUY DEBT-LADEN DIGHI PORT
The Committee of Creditors (CoC) has backed
the resolution plan placed by state-owned Jawaharlal Nehru Port Trust (JNPT) to
buy the debt-laden Dighi Port Ltd under India’s bankruptcy and insolvency law.
The approval of the lenders panel will be submitted to the National Company Law
Tribunal (NCLT) for ratification, at least two people briefed on the decision
told. The bid placed by JNPT is a huge hair cut on some ₹ 2,628.84 crores that Dighi Port Ltd owes a
clutch of 16 banks led by Bank of India (BOI).
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CORPORATE
AFFAIRS MINISTRY TO SUBMIT ITS REPORT ON DHFL THIS WEEK
Ministry of Corporate Affairs' (MCA) Mumbai
regional director will submit its report to the government on the allegations
of Dewan Housing Finance (DHFL) diverting Rs 31,000-crore loans said sources
familiar with the matter. DHFL is in the eye of a storm after a report that the
company through layers of shell companies allegedly siphoned off Rs 31,000
crore out of the total bank loans of Rs 97,000 crore. Following the report last
week, the Registrar of Companies (RoC), Mumbai, has started looking into the
matter. It also plans to seek certain information from the company.
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RBI BOARD
LIKELY TO TAKE UP INTERIM DIVIDEND REQUEST IN FEB 9 BOARD MEETING
The central board of the Reserve Bank of
India (RBI) may consider the government’s request for an interim dividend in the
customary post-Budget meeting with the finance minister, scheduled for February
9, sources told. Interim finance minister Piyush Goyal will address the RBI
board meeting, which will be held two days after the next monetary policy
review. In the customary post-budget meeting, the finance minister of the day
addresses the RBI board and dwells on key issues highlighted in the Budget.
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NATIONAL
INSURANCE, UNITED INDIA INSURANCE, ORIENTAL INDIA INSURANCE MERGER TO BE
COMPLETE NEXT FY2019-20
The government expects to complete the merger
of three state-owned general insurance companies by 2019-20. The merger of
National Insurance Company, United India Insurance Company and Oriental India
Insurance Company was first announced in the Budget 2018-19 and the government
intended to complete the process in current fiscal itself. However, as per the
interim budget document 2019-20 released on Friday, the merger is under process
and will see completion by next financial year as various steps are being
taken. As on March 31, 2017, the three companies together had more than 200
insurance products with a total premium of Rs 41,461 crore and a market share
of around 35 per cent. Their combined net worth is Rs 9,243 crore with total
employee strength of around 44,000 spread over 6,000 offices. Initial estimates
suggest that the combined entity formed after the merger will be the largest
non-life insurance company in India, valued at Rs 1.2-1.5 lakh crore. According
to sources, a consultant has been shortlisted to advise on the proposed merger.
The consultant, appointed on the basis of the bid floated last year in June, is
expected to advise on organisational restructuring, rationalisation of human
resources, management of operational issues, regulatory and compliance issues.
In 2017, New India Assurance Company and General Insurance Corporation of India
were listed on bourses.
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IDBI BANK
Q3 LOSS WIDENS THREEFOLD TO RS 4,185 CRORE
IDBI Bank Monday posted widening of loss by
nearly threefold to Rs 4,185.48 crore for the third quarter ended December 2018
as bad loans surged. The bank had reported a net loss of Rs 1,524.31 crore in
the corresponding quarter of the previous fiscal. Total income decreased to Rs
6,190.94 crore for the quarter, compared with Rs 7,125.20 crore in the
corresponding quarter a year ago, IDBI Bank said in a statement. The bank's
gross non-performing assets (NPAs) shot up to 29.67 per cent of gross advances
during the quarter, against 24.72 per cent in the year-ago period. However, net
NPAs declined to 14.01 per cent of the total advances, from 16.02 per cent in
the December 2017 quarter. As a result, the bank's provision for bad loan
increased to Rs 5,074.80 crore, compared with Rs 3,649.82 crore a year ago.
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RBI MAY
SLASH INTEREST RATE BY 25 BPS: SBI REPORT
The Reserve Bank may cut key lending rate by
0.25 per cent later this week in view of benign inflation, said an SBI research
report on Monday. The six-member Monetary Policy Committee (MPC) headed by RBI
Governor Shaktikanta Das will start its three-day meet in Mumbai on Tuesday and
announce the policy on February 7. We now expect RBI to change its stance in February,
but it is likely to remain on a pause mode. The first cut might happen in April
2019, but we believe it will be shallow rate cut cycle. However, we will not be
overtly surprised if RBI delivers a 25bps rate cut on February 7 itself, said
SBI's Ecowrap. First, headline inflation still remains significantly benign and
growth has hit a soft patch, it said.
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GOVT TO
START SELLING NON-CORE ASSETS OF STATE-OWNED FIRMS FROM APRIL
The government will start the process to sell
non-core assets of state-owned companies, which have been identified for
strategic disinvestment, next fiscal, an official said. The Cabinet has already
approved strategic sale of about 2 dozen central public sector enterprises
(CPSEs), including Air India, Dredging Corporation of India, and Bharat Earth
Movers Ltd, for strategic sale. Out of this, the DIPAM has already identified 9
CPSEs for sale of land and other assets before they are put on the block for
strategic sale. These include Scooters India, Air India, Bharat Pumps &
Compressors Ltd, Project & Development India (PDIL), Hindustan Prefab,
Hindustan Newsprint Ltd, Bridge and Roof Co and Hindustan Fluorocarbons. The
Department of Investment and Public Asset Management (DIPAM) has been drafting
an asset monetisation framework, which will lay down the procedures for the
administrative ministries to follow in selling off CPSE assets. Asset
monetisation framework will see the light of the day next fiscal. The framework
and assets will get defined by the time we finish this fiscal. The actual
process will start next fiscal. The framework would define the assets, define
various models under which they can go for monetisation and also the process to
follow, Atanu Chakraborty told. Monetisation of assets is among the slew of
strategies that the DIPAM will follow to meet the Rs 90,000 crore disinvestment
target set up for the next fiscal. This is higher than the Rs 80,000 crore the
department is expected to raise this fiscal ending March. The DIPAM has already
floated a draft Cabinet note on the guidelines, which would be applicable for
those central public sector undertakings that are likely candidates for
strategic disinvestment.
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RERA HAS
FAILED TO EXUDE CONFIDENCE AMONG HOMEBUYERS: REPORT
Over 80 percent of consumers are of the view
that there has not been much change in the property buying experience despite
enactment of the new regulatory mechanism, according to a pan-India survey by
Track2Realty. RERA provisions have been diluted by some states and there have
also been instances wherein there is a mismatch in the timelines laid down in
the developer’s agreement of sale and those shared with RERA, the survey
revealed. The survey was aimed at assessing the awareness level of home buyers
with regard to RERA and understanding the extent to which the new legislation
has brought about a change on the ground. Projects worth Rs 4.64 crore
comprising 5.75 lakh units are already significantly behind schedule. These
have been stuck since 2013 or before, the report notes.
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ZEE SAYS
AGREEMENT WITH LENDERS VALID, NO NEED TO TAKE SEBI PERMISSION
Subhash Chandra-promoted Zee Entertainment
Enterprises (ZEE) clarified on Monday that the promoters’ agreement with the lenders
remains unchanged and that there was no need to take permission from the market
regulator Securities and Exchange Board of India (Sebi) for this. Essel Group
wishes to state that we have not sought any permission from SEBI, as there is
no regulatory requirement, the company said in a statement after media reports
suggested that the moratorium was not discussed with the regulator. ZEE also
said that the company has not received any communication from SEBI or from any
Mutual Fund Company, pertaining to a decision taken with regards to the
moratorium. The company emphasised that the arrangement agreed with the lenders
does not change. As communicated on February 3, the lenders have agreed that
there will not be any event of default declared due to the movement in the
stock price of Essel Group’s listed corporate entities, giving Essel Group the
required level of time to complete the strategic sale process of its key assets
without any compromise on the value, the company said.
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MOODY'S
DOWNGRADES BHARTI AIRTEL'S NOTE RATING TO BA1, OVER CASH FLOWS
Global rating agency Moody's has downgraded
Bharti Airtel Ltd's senior unsecured rating from Baa3 to Ba1 due to uncertainty
over profitability, cash-flow and debt level in a competitive market. The
rating outlook is negative. This rating action concludes the review for
downgrade initiated on November 8, 2018. The downgrade reflects uncertainty as
to whether or not the company's profitability, cash flow situation and debt
levels can improve sustainably and materially, given the competitive dynamics
in the Indian telco market, said Annalisa DiChiara. Bharti reported EBITDA
(Earning before interest, tax, depreciation) of Rs 26,500 crore for the 12
months ending 31 December, representing a 15.5 per cent year-over-year
contraction. Moreover, the profitability of its core Indian mobile segment
remained low, generating just Rs 9,800 crore over the same period. This contributes
around 37 per cent of EBITDA.
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MSCI’S
NEW MATH MAY SPARK OFF BIG STREET SELLOFF
The new methodology to calculate foreign
ownership limit that global index provider MSCI has proposed could lead to a
sharp outflow from Indian stocks. MSCI said in a discussion paper that it will
seek to exclude the shares being offered through global and American depository
receipts (GDRs, ADRs) while calculating foreign ownership limits. This change
could lead to a $12 billion selloff with blue-chip stocks such as Tata Motors,
Larsen and Toubro, ITC and Dr Reddy’s Laboratories taking a hit. The overall
weight of India in the MSCI Emerging Markets (EM) index is expected to fall by
25 basis points to 8.55 per cent if the proposal goes into effect. While
determining the weight of a company, MSCI takes into consideration parameters
including the foreign inclusion factor (FIF), which determines the total
proportion of shares of a company that offshore investors can buy from exchanges.
MSCI considers both domestic shares and depository receipts for calculating
FIF. It wants to exclude depository receipts, which would reduce the proportion
of free-float shares available for foreign investors, thereby slashing the
weight of the company. Passive funds that track MSCI indices don’t invest in
any depository receipts. This could be the trigger behind MSCI’s new proposal,
said S Hariharan, head of sales, Emkay Financial Services. However, any FPI
(foreign portfolio investor) selling due to the change in methodology could be
offset if the global passive funds see strong inflows. Also, GDRs of several
Indian companies have a low level of liquidity and hence are not easily
accessible by foreign investors, MSCI said in the discussion paper. However,
some market participants argue that MSCI indices are based on the free-float
market capitalisation of a company and hence no additional barriers should be
imposed by the index provider.
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INDIA
AMONG THE TOP NATIONS LEADING GDP READINESS
According to the report, organisations
worldwide that invested in maturing their data privacy practices are now
realising tangible business benefits from these investments. The study
validates the link between good privacy practice and business benefits as
respondents report shorter sales delays as well as fewer and less costly data
breaches. The European Union’s GDPR, which focused on increasing protection for
EU residents’ privacy and personal data, became enforceable in May 2018. Organisations
worldwide have been working steadily towards getting ready for GDPR. Within
Cisco’s 2019 Data Privacy Benchmark Study, 59% of organisations reported
meeting all or most requirements, 29% expect to do so within a year, and 9%
will take more than a year. Indian stood sixth globally with 65% of Indian
organisations showing higher preparedness towards meeting most or all of the
GDPR requirements.
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TV
SUBSCRIPTION BILL MAY GO UP FOR MOST USERS: CRISIL
The new tariff order by the Telecom
Regulatory Authority of India (TRAI), which came into effect from February 1 is
expected to increase the monthly bill of most subscribers of television
channels, but benefit popular channels, a report said. The TRAI framework is
intended to usher in transparency and uniformity, and will afford far greater
freedom of choice to viewers, as it allows consumers to select and pay only for
the channels they wish to view, and requires TV broadcasters to disclose the maximum
retail price of each channel and that of bouquets. Our analysis of the impact
of the regulations indicates a varied impact on monthly TV bills. Based on
current pricing, the monthly TV bill can go up by 25 per cent from Rs 230-240
to around Rs 300 per month for viewers who opt for the top 10 channels, but
will come down for those who opt upto top 5 channels, Crisil senior director
Sachin Gupta said. The rating agency observed that the new regime could drive
consolidation in the broadcasting industry as content will be the king and key
differentiator. Subscription revenues of broadcasters would rise around 40 per
cent to Rs 94 per subscriber per month compared with Rs 60-70 now. With viewers
likely to opt for popular channels, large broadcasters will have greater
pricing power. Currently, most distributors are charging network capacity fee
at the cap rate of Rs 130 per month. Similarly, broadcasters have priced
subscription for the most popular pay channels at the cap rate of Rs 19 per
month. But these are early days and the situation may evolve with prices
charged by broadcasters and distributors declining depending on market forces,
viewership and competitive intensity, it said.
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BILATERAL
COOPERATION WITH OPEC
In order to enhance bilateral cooperation
with OPEC and discuss the issues of mutual interest, the India-OPEC
Institutional Dialogue (IOID) mechanism, at the level of Minister of Petroleum
and Natural Gas and Secretary General of OPEC, was established in June 2015.
The 3rd meeting of the IOID was held on 8th October 2018 in New Delhi. During
his meetings with the Secretary General of OPEC, Minister of Petroleum and
Natural Gas raised India’s concerns related to high international crude oil
prices and urged OPEC to move to responsible pricing and for abolishing Asian
Premium. He also stressed that both producing and consuming countries should
work closely for the benefit of both producers and consumers. These issues have
also been taken up withcountries such as Saudi Arabia and other major crude oil
suppliers who are members of OPEC. In November 2018, India strongly took up the
issue of high crude oil prices and Asian Premium with Saudi Arabia on the
margins of G-20 Summit in Buenos Aires, Argentina. Saudi Arabia assured to
seriously consider issues raised by India and work with India in this regard.
Consequently, Asian Premium has seen a downward trend. Secretary General of
OPEC has also assured India that OPEC will closely work with India on these
issues.
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OIL AND
GAS RESERVES IN KG BASIN
Crude oil and natural gas recoverable reserve
established by the Oil and Natural Gas Corporation (ONGC) and private / joint
venture Companies in the Krishna Godavari (KG) Basin is about 698 Million
Metric Tonne of oil and oil equivalent of gas. Crude oil production in the KG
Basin is about 19,190 barrels per day and Natural gas production is 9.8 Million
Metric Standard Cubic Metre per day (MMSCMD). The production cost of companies
vary from field to field depending upon size of the reservoir, location,
availability of surface facilities, stage of production, etc. As per available
information, the production cost of crude oil in KG basin varies from USD 12 to
USD 42 per barrel whereas in other basins it varies from USD 15 to USD 62 per
barrel. Similarly, the cost of natural gas production in KG basin varies from
USD 4 to USD 8 per Million British Thermal Unit (MMBTU) whereas it varies from
USD 2 to USD 8 per MMBTU in other basins. The sale price of crude oil
production in KG basin is based on international benchmark of crude oil price.
The natural gas price is computed as per the formula prescribed under the New
Domestic Natural Gas Pricing Guidelines 2014. However, in case of natural gas
produced from Deepwater, Ultra Deep Water and High Pressure-High Temperature
marketing including pricing freedom is allowed subject to ceiling under the
extant Policy Guidelines dated 21st March, 2016. On account of this, sale price
of natural gas during 2017-18 in KG Basin varies from USD 2.7 to USD 7.7 per
MMBTU depending upon production from onland /shallow water blocks or Deepwater
blocks.
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FIRST 51,
THEN 17, NOW 2: KERALA GOVT ADMITS ONLY 2 YOUNG WOMEN ENTERED SABARIMALA POST
SC VERDICT
On Monday, the Kerala government admitted
that just two women, between the ages of 10 and 50, have entered the temple at
Sabarimala after the Supreme Court lifted restrictions on the entry of women of
all ages at the hill-top shrine. The clarification comes after the ruling LDF
government in the state last month submitted in the Supreme Court a list of 51
women between 10-50 ages who had supposedly entered the temple. But within
hours of the list being publicised, the government was left red-faced as it
contained names of several men as well as women who were over the age of 50 as
well. Following the gaffe, an enquiry was ordered as to how the mistake
occurred and subsequently, 34 names were cut off the list. But now, the government,
citing the temple management, has reasoned that it has proof to show just two
women entering the temple.
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SURESH
PRABHU ADDRESSES INDIA-MONACO BUSINESS FORUM
Suresh Prabhu, said that there is vast scope
for cooperation between India and Monaco in several sectors including tourism.
Suresh Prabhu said, the list of sectors for cooperation is endless starting
from fin-tech, financial services and banking to tourism and healthcare
services and the opportunities are innumerable. The evolving global economic
challenges of today are also creating opportunities for the two countries to
re-align and widen their economic engagements, deepen their existing
cooperation to re-shape things and benefit. He said that the two nations can
also cooperate in climate change, with the use of high-end technology to
mitigate the ill effects. The Commerce Minister said that drawn by beauty of
its setting, Monaco is considered a hub of emerging opportunity for thetourism
industry. He said that tourism has very strong prospects with Indian tourists
looking for leisure and adventure in Monaco. Collaborative work with Indian
counterparts can be initiated in the field of chemicals and petrochemicals as
well as in the production of plastics and electronics, the Minister added.
Suresh Prabhu informed that India is poised to become a USD5 trillion economy
by 2025 of which 3 trillion will be generated from the services sector. He said
that in order to achieve this target 12 champion sectors have been identified.
Monaco’s free-market economy increasingly driven by its industry and service
sectors, backed by one of the highest per capita incomes in the world and
investors friendly policies, are further supporting its credentials as an ideal
business and investment destination for Indian companies. Monaco’s emerging
opportunities further complement India’s most promising sectors, with expanding
space for investment in a range of services and skills. Bilateral trade between
India and Monaco in 2017-18 was USD 3.01 million, and there is immense
potential to scale up the bilateral trade between the two nations. Monaco is
ranked 106th among foreign direct investor in India (since April 2000 to June
2018) with USD 2.51 million FDI equity inflow.
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WTO
ISSUES AND CHALLENGES
The World Trade Organization and the global
trading system are facing serious challenges in terms of unilateral measures
and counter measures by some members, deadlock in important areas of negotiations
and ongoing impasse in the appointment of members of the Appellate Body of
WTO’s dispute settlement mechanism. These challenges have necessitated a
discussion among members for reforms in the WTO, with a view to plug the gaps
in the WTO rules and procedures. India, as a strong supporter of the
multilateral trading system, supports reforms of the WTO provided that the
process is inclusive and addresses the developmental concerns of developing and
least developing countries. There has been an impasse in the matter of
selection of members of the Appellate Body Members of the WTO. The robust
Dispute Settlement Mechanism of the WTO ensures that the rules of global trade
agreed at the forum are not breached by members. India has been engaging with several
WTO Members on the way forward at the WTO. India has recently co-sponsored a
proposal with the European Union and other members on reform of the dispute
settlement mechanism addressing various challenges. The proposal, inter alia,
addresses various imperative issues of timelines, the appointment process of
the Appellate Body members, their tenure and other conditions so that the
Appellate Body and the Dispute Settlement Mechanism work more efficiently.
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PAK HAS
NO INTENTION TO INTERFERE IN INDIA'S INTERNAL MATTERS: PAK FOREIGN MINISTER
Pakistan has no intention to interfere in
India's internal matters and New Delhi should not make an issue out of his
telephonic conversation with Kashmiri separatist leader Mirwaiz Umar Farooq,
Pakistan Foreign Minister Shah Mehmood Qureshi has said. India Wednesday
summoned Pakistan envoy Sohail Mahmood and categorically told him that
Qureshi's telephonic conversation was a brazen attempt to subvert India's unity
and violate its sovereignty and territorial integrity. Mahmood was cautioned by
Foreign Secretary Vijay Gokhale that persistence of such behaviour will have
implications. Qureshi said that Pakistan has no intention to interfere in the
internal matters of India, but New Delhi should also stop blaming Islamabad for
its problems, Dawn news reported. The Foreign Minister acknowledged that he
spoke with Hurriyat leader Mirwaiz and India should not make it an issue. We
want to resolve the Kashmir dispute through dialogue but India is making undue
hue and cry, Qureshi was quoted. Qureshi said that he would highlight
Pakistan's view point on Kashmir issue at an event in the House of Common in
London this week. Foreign Minister said that election in India was an internal
matter and Islamabad would try to hold talks with the new government if it
wanted to work with Pakistan. India has made it clear to Pakistan that talks
and terrorism cannot go together.Pakistan's relations with many countries have
improved because of successful diplomacy of the incumbent government, he
claimed.
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INDIA
CAUTIONS US ON PEACE DEAL WITH TALIBAN, LOOKS AT CHINA
As the Donald Trump administration seeks to unilaterally
cut a deal with the Taliban, the Indian government has conveyed to the US that
any such agreement must safeguard existing political and constitutional
structure in Afghanistan and that India doesn't favour installation of any
interim government in the country which goes to polls in July. India is looking
to open a dialogue with China on the crisis-like situation in Afghanistan
brought about mainly by what is seen by many as a hasty and irresponsible
attempt by the Trump administration to declare victory and get out of the
country, almost half of which is now controlled by the Taliban. The government
has expressed its reservations before the US special representative for
Afghanistan Zalmay Khalilzad, who visited India last month, said people
familiar with India's position. They spoke on condition of anonymity because of
the sensitive nature of the issue. While even Army chief Bipin Rawat has spoken
about the need for India to join the bandwagon of countries who are engaging
the Taliban, the government clearly has no intention of wading into what may
turn out to be another Afghanistan quicksand. Elaborating on India’s position,
a source recalled how the government’s decision not to meddle in the Maldives
and Sri Lanka recently paid India dividends. While India acknowledges US
compulsion in engaging the Taliban (it said last week it favours inclusive
political settlement), it remains worried about statements coming out of Kabul
that the US has kept even the Afghanistan government in the dark about its
recent talks for a peace deal with the Taliban. Recalling that a large chunk of
its $3 billion development assistance commitment has already been realised, the
government has also made the point before the US that Afghanistan, keeping in
mind India’s claim over PoK, shares boundary with India and that India has
serious security and economic interests in the country. India has emphasised
before the US that it is the only country with significant economic assets on
the ground and that its continuing engagement will depend on its partnership
with Kabul specifying the latter’s needs and requirements. India will soon for
the first time also be discussing the developing situation with Beijing. India
and China have been looking to work together in Afghanistan since the 2018
Modi-Xi summit in Wuhan but have not yet had discussions on recent
developments.
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N.KOREA
PROTECTING NUCLEAR MISSILES, UN MONITORS SAY, AHEAD OF SUMMIT TALKS
North Korea is working to ensure its nuclear
and ballistic missile capabilities cannot be destroyed by military strikes U.N.
monitors said ahead of a meeting between U.S. and North Korean officials to
prepare a second denuclearisation summit. The U.S. special envoy for North
Korea, Stephen Biegun, will meet his North Korean counterpart on Wednesday in
Pyongyang to prepare for a summit later this month between President Donald
Trump and North Korean leader Kim Jong Un, the U.S. State Department said on Monday.
Biegun has said he hoped the meeting with new North Korean counterpart Kim Hyok
Chol would map out a set of concrete deliverables for the summit between Trump
and Kim Jong Un. Biegun, who held talks with South Korean officials in Seoul on
Sunday and Monday, said he would be aiming for a roadmap of negotiations and
declarations going forward and a shared understanding of the desired outcomes
of our joint efforts. South Korean officials said they and the United States
could be looking at a compromise that could expedite North Korea's
denuclearisation - the dismantling of the North's main Yongbyon nuclear
complex, which could be reciprocated by U.S. measures including formally ending
the 1950-53 Korean War and setting up a liaison office. But U.N. sanctions
monitors said in a confidential report, submitted to a 15-member U.N. Security
Council sanctions committee and seen by Reuters on Monday, that they had found
evidence of a consistent trend on the part of the DPRK to disperse its
assembly, storage and testing locations, using the abbreviation for North
Korea's official name, the Democratic People's Republic of Korea.
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WOULD BE
'ARMED WITH FRESH' BREXIT MANDATE BEFORE MEETING EU, SAYS MAY
British Prime Minister Theresa May said on
Sunday she would be armed with a fresh mandate and new ideas when she meets
European Union negotiators over her Brexit deal. EU officials have insisted
that the deal is not open for renegotiation. But May wrote in the Sunday
Telegraph that she would be battling for Britain and Northern Ireland in her
efforts to get rid of the agreement's unpopular backstop provision. If we stand
together and speak with one voice, I believe we can find the right way forward,
she said. The backstop is intended to ensure there is no return to a hard
border with Ireland, but Brexit supporters fear it will keep Britain tied to
the EU's customs rules. I am now confident there is a route that can secure a
majority in the House of Commons for leaving the EU with a deal, she wrote.
When I return to Brussels I will be battling for Britain and Northern Ireland,
I will be armed with a fresh mandate, new ideas and a renewed determination to
agree a pragmatic solution. May has promised MPs that she will bring any revised
deal back to be voted on by MPs on February 13.
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GOOGLE
ALERTS USERS TO TAKE TAKE CONTROL OF DATA TO STAY SAFE ONLINE
Securing the phone screen with a unique
password and keeping a tab on the permissions given to apps are some steps
smartphone users can take to keep themselves safe online, tech giant Google
said Monday. These recommendations are part of Google’s latest campaign
‘#SecurityCheckKiya’ that urges users to take control of their data The
campaign is being initiated ahead of Safer Internet Day on February 5. As
technology continues to change the way we live, work, and play, users want to
know how best to ensure their safety on the web. Helping people manage their
privacy and security is integral to everything we do, Google India Director,
Trust and Safety Sunita Mohanty said. She said Google builds products with
strong security protections at their core to continuously and automatically
detect and protect users’ data. We notify you when you’ve granted access to
third-party sites or apps, but it’s really important for you to understand the
information that you share with these apps or sites, Mohanty said in a blog.
#For Source of Information copy and paste the heading in google.
Thanks & Regards,
CS Meetesh Shiroya
Thanks & Regards,
CS Meetesh Shiroya
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