Monday, 4 February 2019

TAXATION UPDATES 04.02.2019





GST REVENUE COLLECTION FOR JANUARY 2019 CROSSED ONE LAKH CRORE RUPEES

The total gross GST revenue collected in the month of January, 2019 is Rs 1,02,503 crore of which CGST is Rs 17,763crore, SGST is Rs 24,826 crore, IGST is Rs 51,225 crore (including Rs 24,065 crore collected on imports) and Cess is Rs 8,690 crore (including Rs 902 crore collected on imports). In FY 2018-2019, it is for the third time that GST Revenue collection has crossed One Lakh Crore. The total number of GSTR 3B Returns filed for the month of December up to 31st January, 2019 is 73.3lakh The government has settled Rs 18,344 crore to CGST and Rs 14,677 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of December, 2018 is Rs 36,107 crore for CGST and Rs 39,503 crore for the SGST. The collection in January 2019 is a significant increase from the collection of Rs 94,725 crore in December, which was a decline from Rs 97,637 crore in November and Rs 1,00,710 crore in October. January 2019 collections are 14% above the January 2018 collections of Rs 89,825 crore. This jump has been achieved despite various tax reductions having come into force that provided major relief to the consumers. The gross GST collections over the last three-month period has been 14% higher than the corresponding period last year.
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I-T ASSESSMENTS TO BE COMPLETELY FACELESS IN FEW YEARS: CBDT CHAIRMAN

Income tax assessments will be completely faceless, without the taxpayer having to face the taxman in about two years and assessees will be provided pre-filled return forms as part of the government's initiative to simplify procedures, a senior government official said Sunday. Sushil Chandra told in a post-Budget interview that about 2.06 lakh income tax assessment cases were handled online by the department last year, as part of the 'nameless and faceless' delivery of service to taxpayers. He added that the recent government sanction to create the advanced Centralised Processing Centre 2.0 in the I-T Department is a precursor to these futuristic proposals. CPC 2.0 has got a lot of new advantages. A pre-filled return form will be given to the taxpayer on the basis of information we get about them from the tax deducted at source (TDS) procedure. That will also facilitate processing of returns in 24 hours and we have got an agreement (with the technology vendor operating the CPC 2.0) that if it (I-T return) is processed in one day, more amount will be given. We expect this system to be rolled out in 2 years. Faster processing of returns will increase better tax compliance, Chandra said. The existing CPC in Bengaluru is the nodal wing of the tax department to handle I-T returns filed by taxpayers of all categories and subsequent issuance of processing certificate and refunds to a tax filer. Even now, very few I-T return cases, only about 0.46 per cent of the total, are brought under scrutiny He said 99.54 per cent ITRs are accepted as they are. Over the last year, about 2.06 lakh assessments were completed in a faceless manner. This will be further enhanced. We are largely faceless now when it comes to dealing with taxpayers regarding their assessments and scrutiny but we are working to become completely faceless over the next few years, Chandra said. The CBDT frames policy for the I-Tax Department and functions under the Union Finance Ministry. Chandra said the taxman, in coming days, will undertake a two-part approach when dealing with an average taxpayer's ITR. The department has said that under the 'faceless and nameless' tax scheme, only those cases will require personal attendance of an assessee to explain their position where the evidence of tax evasion is grave.
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‘MORE THAN 2K STARTUPS UNDER I-T LENS OVER ANGEL FUNDING’

More than 2,000 startups that had received funding from investors — angel financiers, private equity (PE) and venture capital (VC) funds — have received notices under the ‘angel tax’ showed a survey conducted by the Indian Venture Capital Association (IVCA), a grouping of investors. The IVCA survey showed that 73% of the 2,883 respondents received the angel tax notices. The startups said that they have received the notice for raising capital over the fair market value or for raising capital from unknown sources. Angel tax deals with premiums paid by investors while they invest in startups. Tax officials have questioned increasing valuations of startups even when revenue is falling or remaining stagnant. The revenue department deems the capital in excess of a fair market value as ‘other income’ that is taxable. Also, in cases where the investor is not Indian, the tax department has in the past issued notices branding such investments as unexplained cash credits, charging a 30% tax on those. It had sent notices to many startups, asking them to pay the tax. The IVCA survey asked, among other things, whether the startups had received notices under the two income tax sections — 56(2)(viib) and Section 68. While 56(2)(viib) deals with valuations (classification of a funding as income or investment), Section 68 deals with unexplained credit. About one fourth of the startups that received notices said that they have received notices under both the income tax sections. Like we said, let data do the talking; this brings more clarity to the issue of angel taxation. We have seen active participation from angel networks, VCs that had reached out to all of their portfolio startups and thus seemingly this survey gives more credible data, said Rajat Tandon. Industry estimates showed that there are around 7,000 startups in India. The IVCA had managed to get responses from more than 2,500 startups. As per the survey in 95% of the cases, the tax notices were issued wherein less than 10 crore was invested. Meanwhile, the government last week came out with one more notification on the issue. Tax experts said the latest notification would have absolutely no impact on the ongoing controversy. This is just a procedural notification, which CBDT was required to issue to put in place the mechanics to make effective the changes made by Department of Industrial Policy and Promotion.
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GSTN ALERT: TWO NEW FEATURES ADDED IN GST PORTAL

The Goods and Services Tax Network has added two new features in the GST portal including List of Preferred Banks list while making Payment and the Monthly Refund applications by Quarterly GSTR-1 filers. From now, every time a taxpayer makes GST payment using in the bank, it will be updated in the Preferred Bank list for that taxpayer. As per the statement issued by the GSTN, up to six preferred banks will be shown to the taxpayer while making e-payment on GST portal. The GSTN further removed the restriction for applying for a refund on a quarterly basis for quarterly GSTR 1 filers. These taxpayers can now file refund application on a monthly basis if Form GSTR1 for the quarter is filed.
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EXTENSION OF DUE DATE FOR FURNISHING OF FORM GSTR-8 FOR OCT TO DEC 2018 TILL 07.02.2019

WHEREAS, sub-section (4) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under subsection (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such month; AND WHEREAS, certain operators, were unable to obtain registration because of technical issues being faced by them on the common portal but they collected the amount for the months of October, November and December 2018, as a result whereof, the statement under subsection (4) of section 52 of the said Act could not be furnished and because of that certain difficulties have arisen in giving effect to the provisions of the said sub-section; NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central Government, on recommendations of the Council, hereby makes the following Order, to remove the difficulties namely: ––

1. Short title ––This Order may be called the Central Goods and Services Tax (Second Removal of Difficulties) Order, 2019.
2. In section 52 of the Central Goods and Services Tax Act, 2017, in sub-section (4), in the Explanation, for the figures, letters and word 31st January, 2019, the figures, letters and word 07th February, 2019 shall be substituted
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EXTENSION OF TIME FOR SUBMITTING FORM GST TRAN-1 TILL 31.03.2019

In exercise of the powers conferred by sub-rule (1A) of rule 117 of the Central Goods and Services Tax Rules, 2017 read with section 168 of the Central Goods and Services Tax Act, 2017, on the recommendations of the Council, and in supersession of Order No. 4/2018- GST dated 17.09.2018, except as respects things done or omitted to be done before such supersession, the Commissioner hereby extends the period for submitting the declaration in FORM GST TRAN-1 till 31st March, 2019 for the class of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council.
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INCOME UP TO RS 5 LAKH CAN PAY ZERO TAX BUT STILL NEED TO FILE ITR

If you thought that having a taxable income of up to Rs 5 lakh meant bye-bye to the tax department think again. You can avail of the zero tax benefit announced in Budget 2019 but you still need to file your income tax return (ITR). The income tax exemption limit for all citizens below 60 years still remains at Rs 2.5 lakh and for senior citizens Rs 3 lakh. Therefore, if you are earning anything above these exemption limits annually then you are mandatorily required to file your ITR. You can claim the rebate of all tax payable if your taxable income is up to Rs 5 lakh under section 87A in your ITR when you file it. If you have income up to Rs 5 lakh but don't file your ITR assuming that your tax payable is zero you are liable to get a notice from the income tax department. This would mean that in order to pay zero tax on the income earned by you during the financial year 2019-20, you will be first required to declare your gross total income by filing ITR. Your gross total income would include income from various sources such as salary, interest income from savings account, fixed deposits and so on. Then you will be required to claim all the deductions and tax breaks such as house rent allowance (HRA), standard deduction, deductions under section 80C, 80D, interest paid on housing loan etc. which you are eligible for. As per the budget proposals, it has been proposed to hike the rebate under Section 87A to Rs 12,500. This would effectively make tax liability zero for taxpayers having net taxable income not exceeding Rs 5 lakh. Currently, the rebate is limited to Rs 2,500 for individuals having income not more than Rs 3.5 lakh.
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GST REVENUE SHORTFALL DRAGS DOWN GROSS TAX REVENUE TARGET BY RS 23,066 CR

The shortfall in GST revenue of an estimated Rs 1 trillion has forced the government to revise downwards its gross tax revenue target by over Rs 23,066 crore in the revised estimates of the current financial year despite a better-than-expected collection on the direct tax side. As per the Interim Budget tabled in Parliament on Friday, the government revised the Goods and Services Tax (GST) target from Rs 7.44 trillion to Rs 6.44 trillion -- a gap of Rs 1 trillion -- due to the shortfall in collections However, an upward revision of Rs 50,000 crore in estimates for direct taxes to Rs 12 trillion has made up for a significant portion of the shortfall. Total indirect taxes, including Customs and other duties, are estimated to be Rs 10.45 trillion, down from Rs 11.18 trillion. For Financial Year 2019-20, the government has set a direct tax collection target of Rs 13.8 trillion (up 15 per cent from this year's revised estimates) and indirect tax collection target of Rs 11.7 trillion (up 11.9 per cent). Pranab Kumar Das, who assumed charge last month, said with compliance going up and tax net widening, it won't be difficult to meet the revenue targets. The very first month after assuming charge on January 1, I have already achieved the target of Rs 1 trillion that I promised before taking over. I have shown this is possible, he said. And with compliance going up, and number of taxpayers going up, it is not difficult for us to get this revenue, he added. Das added that transparency was the key to improve compliance which would play a key role in achieving targets. People are interested to take advantage of this compliance level, this transparent system because they benefit if they become a part of the supply chain. So even though they are below the threshold, many of these entities are registering themselves, he said.
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INCOME TAX REBATE LOGICAL EXTENSION OF STEPS TAKEN BY GOVT SINCE 2014: JAITLEY

Arun Jaitley Friday rejected criticism for deviating from past by including direct tax proposal in an interim Budget saying the rebate in the income tax was a logical extension of steps taken by the government since 2014. While in 2009 and then in 2014, the Congress-led UPA had brought indirect tax proposals in keeping with the needs of the economy, Finance Minister Piyush Goyal announced an income tax rebate on earnings of up to Rs 5 lakh. Budgets are a political reality in a Parliamentary democracy. So are elections, but this is not a move which anywhere contradicts or deviates from what this government has been doing in the past 5 years. It's actually a logical movement in the direction in which we were moving in last 5 years, he said. Goyal's move was criticised by the Opposition saying with general election months away, the Prime Minister Narendra Modi-led government had mandate only to present a vote on account and a Budget containing direct tax proposals. They felt that was the job for the next government to do when they present a full Budget for 2019-20 in July. In 2009, then Finance Minister Pranab Mukherjee introduced a stimulus for the economy faced with global meltdown in his reply to the interim Budget debate. His successor P Chidambaram had in 2014 changed duty structures on some commodities. I completely reject this artificial distinction between direct and indirect taxes. You can deal with indirect taxes not with direct taxes. Tell me, giving a boost to the economy, is it not required today in the larger interest of the economy? On one hand, the so-called critics 'Nawab of Negativity' are saying that the world's fastest growing economy is growing slowly. If that's the point of criticism, then let us be allowed to give a boost to the economy. And, this higher consumption will certainly give boost to the economy, he said. Jaitley said that for the past 5 years, the government has been giving relief in direct taxes and whatever has been done in Interim Budget 2019-20 is a continuation of what started in 2014. With the increased size of Budget, the government has been able to provide benefit to taxpayers. Now, size of the Budget has expanded to Rs 27 lakh crore from Rs 14 lakh crore in 2014 small tax payers are entiled to more money in the pocket and whatever more we spend a lot of it comes back as indirect taxes. It's a movement in the same direction which we started in 2014, he said. Jaitley said the farm sector required resources and if the current scheme is inadequate, the Centre will increase its allocation. Pointing out that the sector is in distress, he said, the Centre has taken the first step and let the state governments of so called critics top it up. Income support and subsidy can go hand in hand, he added.
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BUDGET PROPOSALS TO HELP PUT MORE MONEY INTO POCKETS OF SMALL TAXPAYERS: ICAI

The Budget proposals on the personal taxation front would put more money in the pockets of small taxpayers and increase their purchasing power, chartered accountants' apex body ICAI said Friday. Piyush Goyal, also a chartered accountant, presented the Interim Budget for 2019-20 on Friday. In short, it is a progressive budget from a chartered accountant FM, Institute of Chartered Accountants of India (ICAI) President Naveen N D Gupta said. The Institute of Company Secretaries of India (ICSI) President Ranjeet Pandey said the Budget tries to benefit all the three constituents of the economy -- the labourers, the salaried and the business. Meanwhile, budget carrier SpiceJet Chairman and Managing Director Ajay Singh said the finance minister has managed to do something for a large cross-section of society -- middle class, farmers, and workers in the unorganised sector. This is a people's budget that will help the economy and also lays down a vision for the next 10 years. This could well be a game changer budget in this election year. I feel that the government with this budget has certainly injected a lot of josh without losing its hosh! Singh said. Not-for-profit group CUTS International's Secretary General Pradeep S Mehta said with the general elections few months away, the Budget, on expected lines, was replete with populist measures to woo voters.
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GOVERNMENT TURNS DOWN CALL TO CUT CORPORATE TAX

Having splurged money on farmers and individual taxpayers ahead of the crucial General Election, the government has ignored the long-standing demand of India Inc for reduction in corporate tax from 30 per cent to 25 per cent. Ashok P Hinduja, said that in 2015 the government agreed to cut corporate tax to 25 per cent progressively in four years. About 7,000 top companies still await the cut as it will enhance private investment. Corporates were also expecting the government to reduce minimum alternate tax from 18.5 per cent given the strain in the economy. Last Budget, the government had reduced corporate tax rate to 25 per cent for businesses with turnover of 250 crore. Nabin Ballodia, said, No major tax announcements for the corporate sector and they will have to wait for the full Budget post the elections for any kind of relief. I was expecting some measures to be announced towards easing the access of funds for the infrastructure sector, especially on how to channelise long-term funds from the insurance and pension funds into the infrastructure sector. The Interim Budget could not address that part. I hope that aspect would get adequately covered in the actual Union Budget 2019-20 that will be placed after the General Elections, said Hemant Kanoria. Geojit Financial Services, said, At a time when the unemployment is reported to be at 45-year high and corporate sector investment is at 14-year low, there has been widespread expectations for direct investment boosters in the Budget for creating more job opportunities. This is the only disappointment in the Budget.
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NOT MUCH ON OFFER FOR CORPORATES

India Inc was hoping that the government’s promise of moving towards the corporate tax rate of 25 per cent over four years will be partially met in this Budget. But they were disappointed as the document has left corporate tax rate untouched. That said, the Budget seeks to put more money in the hands of the middle-class through the move to provide full rebate for individual taxpayers having annual taxable income up to 5 lakh and through an increase in the standard deduction. While the direct income of 6,000 per year to small farmers is too small to make a material impact on demand for farm inputs, this coupled with other subsidies on MSP, fertilisers and interest subvention will give a small fillip to rural demand. The allocation of 82,127 crore to schemes such as MNREGA, green revolution and Pradhan Mantri Krishi Sinchayi Yojana are also likely to help the rural economy. Budget allocation of 36,691 crore for National Highways Authority of India, 19,000 crore for PM Gram Sadak Yojana and 25,853 crore for PM Awas Yojana are expected to result in higher order flows for construction companies, real estate players and boost demand for cement and steel. In the Budget of 2015, Arun Jaitley had proposed to reduce the rate of corporate tax from 30 per cent to 25 per cent over the next 4 years. While the rate of taxation was reduced for smaller companies, with turnover up to 250 crore, higher surcharge and cess have been hurting corporates. Also larger companies have continued to bear the brunt of higher taxes with effective tax rate of companies in BSE 500 at 29 per cent in FY18, slightly higher than the 28 per cent in FY17. Phasing out of various allowances is in fact beginning to hurt companies. Earnings growth of India Inc has also not been smooth in Modi’s regime. Bad monsoons, melt-down in commodity prices, high interest rates and global slow-down hurt revenue growth in FY15 as well as FY16. But revenue growth was back on track from FY17, with growth of 13 per cent and 12 per cent in FY17 and FY18 respectively. Despite the disruptions caused by demonetisation and GST roll-out, declining commodity prices and interest rates as well as strong consumption helped revenue growth. Earnings growth has also been steady from FY16, growing between 14 per cent and 17 per cent. In the recent quarters, while revenue growth has been good, margins have been under pressure due to rising commodity prices and rupee depreciation hurting commodity imports.
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IF GST HASN’T PAID OFF, THEN BLAME ITS UNWIELDINESS

The Modi government managed to bring together states of various political hues for the Goods and Services Tax (GST) by finding the middle road in administrative power-sharing via the mechanism of the finely balanced Centre-State GST Council. The guaranteed 5-year compensation for ‘revenue shortfall’ —defined against 14% annual increase over FY16 base – also helped to overcome some states’ reluctance to embrace the epochal indirect tax reform. If nineteen months since its launch the GST has yet to stabilise and is struggling to produce the revenue buoyancy and incremental economic efficiency it is theoretically capable of, it is not only due to the inevitable teething troubles that such a big change would have anyway created, but also because of the multiple structural deficiencies the new tax was born with. Far from the simple, one-nation-one-tax envisaged by experts, India’s GST came into being with practically seven or more rates and excluding many high-revenue-earning segments (chiefly, petroleum products namely diesel and petrol, real estate and alcohol, the last excluded even constitutionally, the others with a promise to include later). Also, the input tax credits were not released to the businesses promptly, leading to serious working capital problems for small units. The rates were initially high (28%) for a wide array of consumer articles. The small services industry, which was used to benign rates, has reeled under an 18% GST. A large segment of MSMEs has found GST compliance cumbersome especially since it closely followed the note ban. To top it all, a foolproof returns-filing system has got deferred several times and not in force even now, undermining tax officials’ ability to undertake invoices-matching and check evasion. Of course, the GST Council, often at the initiative of Union finance minister Arun Jaitley, has over the last several months taken a number of steps to improve the GST structure. Rates were cut for nearly 120 goods and services since July 2018 itself; as a result, the highest slab of 28% GST is now restricted to only 37 items or 3% of total items under GST. The weighted average GST rate is, however, still higher than most countries with similar multi-point tax on value addition. Recently, the GST exemption limit was raised from Rs20 lakh to Rs40 lakh, the threshold for the composition scheme—which allows tax payment as a tiny fraction of turnover rather than transaction-wise—was enhanced to Rs1.5 crore from Rs50 lakh, and the facility got extended to service-sector players with up to Rs50 lakh annual sales. From April this fiscal, e-way bills have got rolled out in phases across the country, for moving consignments worth over Rs50,000. While these steps may address the woes of aggrieved taxpayers, some of them—like an option for states to keep the exemption limit between Rs20 lakh and Rs40 lakh and permission to Kerala to have temporary calamity cess—go against the idea of flawless GST.
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GRANT INDUSTRY STATUS, CUT GST RATE, SAY PROPERTY DEVELOPERS

Grant of industry status for the real estate sector, and rationalisation of the goods and services tax (GST) by bringing stamp duty and registration under it are the two key expectations of the real estate industry in Karnataka from the Union budget scheduled on Friday. The industry has gone through two years of slowdown owing to demonetisation, implementation of the Real Estate Regulatory Authority (RERA), and GST. There are signs of revival now, but it's slow. The industry is hoping the state budget, tentatively scheduled for February 8, will also offer some big sops for the sector with an eye on the Lok Sabha polls in April. Atul Goyal, said the real estate sector is the second largest after agriculture, as it now contributes about 5% to GDP, but it is yet to be declared as an industry. Although various companies involved in the construction of dams, roads and others have gained industry status, real estate, in spite of providing employment to lakhs of people, is still in the queue, he said. C N Govindaraju, said a reduction of GST from the current 12% to about 5-6% would be extremely beneficial for real estate consumers. This will help improve market sentiment after 2-3 years of mostly sluggish growth, he said. Suresh Hari, said they are hoping that the Union government will reduce tax (GST) and the state government will either reduce or do away with stamp duty and registration charges in tune with the GST slogan of One tax, One country.
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REALTY LOOKS FORWARD TO GOM RECOMMENDATIONS ON GST: NIRANJAN HIRANANDANI

The budget speech by Finance Minister Piyush Goyal has positive news for the common man, which includes no increase in taxes on one hand, and enhanced benefits and reliefs on the other. Effectively, for the tax payer, it promises to bring a smile on his or her face, and this positive sentiment might just enable many a ‘fence sitter’ to morph into a ‘home buyer’. To my mind, the biggest takeaway from the Finance Minister's budget speech is rationalized taxation good for both – home buyers as also the real estate developers While we will need to go through the points in detail, the first reaction is definitely ‘positive’. Having said that, I will wait for the Group of Ministers (GoM) to come up with recommendations to the Goods and Services Tax Council, which will hopefully, bring real estate under GST, while subsuming all other taxes and levies. The Finance Minister said the government was trying to reduce GST burden on homebuyers but the jury is still out on what the GoM may come up with as its recommendations. Among other points that Goyal mentioned, the first to my mind would be extending benefits under Section 80-IBA of the Income Tax Act for one more year. This will enable creation of more homes under affordable housing. This will be applicable to housing projects approved till 31st March, 2020. Secondly, with the aim of giving impetus to real estate, the Finance Minister has proposed extending the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years. This will be applicable from the end of the year in which the project is completed, and this will ensure that the slow-down in creation of fresh stock as a result of the previous situation - where the exemption was only for one year - will be positively impacted. In my thought process, two things that could have also made it to this positive Budget speech - which were missing as regards the housing sector – granting of industry status to real estate as a sector, not restricting it only to the affordable segment; as also section 43-C of the Income Tax Act, wherein tax is levied when prices are reduced. Also, the NBFC deadlock and stressed asset problems could have been dealt with in terms of solutions in the Budget speech.
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IPS RISHI KUMAR SHUKLA APPOINTED AS THE NEW CBI DIRECTOR

The PM Modi-led selection panel on Saturday appointed IPS Rishi Kumar Shukla as the new Director Central Bureau of Investigation (CBI). Rishi Kumar Shukla, a 1983 batch IPS officer, was earlier working as the OSD in the Bhopal, Police Headquarters (PHQ). The post of the CBI chief has been lying vacant since January 10 after the unceremonious exit of Alok Verma, who had been engaged in a bitter fight with Gujarat-cadre IPS officer Rakesh Asthana over corruption charges. Both Verma and Asthana had accused each other of corruption. Verma, after being removed from the post of CBI director by the PM-led panel, was named as the Director General of Fire Services, Civil Defence and Home Guards -- a less significant portfolio. Verma did not accept the offer and wrote to the government, saying he should be considered as deemed superannuated as he has completed 60 years age of superannuation on July 31, 2017. He had taken over as the CBI chief on February 1, 2017 for a fixed two-year tenure that ended Thursday.
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COURT GIVES INTERIM PROTECTION FROM ARREST TO ROBERT VADRA TILL FEBRUARY 16

A Delhi Court Saturday granted interim bail till February 16 to Robert Vadra in a money laundering case registered by the Enforcement Directorate (ED). Arvind Kumar also directed Vadra to appear before the ED on February 6 and cooperate in the investigation. I am granting him interim bail. Let him come and join the probe, the judge said. The case relates to allegations of money laundering in the purchase of a London-based property -- located at 12, Bryanston Square -- worth 1.9 million pounds, which is allegedly owned by Vadra, the brother-in-law of Congress President Rahul Gandhi. During the hearing, special public prosecutor D P Singh and advocate Nitesh Rana, appearing for the ED, opposed Vadra's anticipatory bail and claimed that he had got kickbacks in a petroleum deal in 2009. The agency has received information about various new properties in London which belongs to Vadra including two houses of 5 and 4 million each, 6 other flats and more properties. We just want him to come and inform about his properties, Rana said. Senior advocate KTS Tulsi, appearing for Vadra, told the court that his client was out of the country for his mother's treatment and assured the court that he will come and join probe. Vadra said that he was being subjected to unwarranted, unjustified and malicious criminal prosecution which on the face of it is completely politically motivated and is being carried out for reasons other than those prescribed under law.
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UNDECLARED PROPERTIES IN LONDON ALLEGEDLY LINKED TO ROBERT VADRA UNDER SCANNER

A UK based company has come under the scanner of Indian probe agencies for allegedly round tripping money received as kickbacks for two contracts- one related to Petroleum and another Defence deal. While the Petroleum contract was granted by the UPA-I government in 2009, the Defence deal was sanctioned in the year 2005. The details of the two deals are being looked into by the investigators Under scanner are nearly four properties purchased in London with alleged ill-gotten wealth emanating from the 'kickbacks' received by the UK company from the two deals. Arms dealer Sanjay Bhandari, alleged associate of Robert Vadra, purchased a mansion in London for 1.9 million pounds from the UK company. The mansion was purchased with the help of purchase shares of Bhandari's company- Vortex. In the year 2010, the said mansion was purchased by Dubai based NRI businessman C C Thampi. The said purchase was made by Thampi through a company Skylite FZE. The company has an account in Sharjah. Thampi is already being investigated by Enforcement Directorate (ED) for FEMA violations of Rs 1,000 crores. Investigators suspect close association between Thampi and Vadra. It is alleged that months after the Petroleum deal was okayed in the fag end of 2009, enormous amounts of money was transferred in the account of Skylite. Several lakhs of dirhams (Dubai currency) were transferred in the company's account in April, 2010. The agencies claim to be in possession of emails exchanged between Vadra and Sanjay Bhandari pertaining renovation of the said mansion in London before it was sold off to Thampi in 2010. The renovations were done to the tune of 60,000 pounds. Agencies further allege that the London mansion was sold back to the UK company- Syntak, which amounted to round tripping The agencies investigating the alleged role of Sanjay Bhandari, Robert Vadra and Thampi in the said purchase. Vadra has repeatedly rubbished all allegations levelled against him. His associate Manoj Arora is also facing an investigation by the Enforcement Directorate on charges of money laundering. In his anticipatory bail application, Vadra has alleged that he has been harassed by the ED officials and that the agency has called upon his company and his representatives on more than two dozen occasions since June 15, 2016 and nothing has been found against him.
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ED FILES MONEY LAUNDERING CASE AGAINST VIDEOCON GROUP'S DEEPAK KOCHHAR

The Enforcement Directorate (ED) has registered a criminal case of money laundering against former ICICI Bank CEO Chanda Kochhar, her husband Deepak Kochhar, Videocon Group promoter Venugopal Dhoot and others to probe alleged irregularities and corrupt practices in sanctioning of Rs 1,875-crore loan by the bank to the corporate group, officials said Saturday. They said the central probe agency filed an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act, taking cognisance of a CBI complaint filed on the matter last month. An ECIR is the ED's equivalent of a police FIR. The officials said the agency would probe if alleged kickbacks generated in the loan deal were laundered to create tainted assets. The ED is soon expected to summon the accused named in the ECIR. The list of accused in the ED case is the same as that of the CBI, they said. It had also conducted raids in the case. During its preliminary enquiry, the CBI found that six loans worth Rs 1,875 crore were sanctioned to the Videocon Group and companies associated with it between June, 2009 and October, 2011 in alleged violation of laid-down policies of ICICI Bank, which have now become part of the probe. Existing outstanding in the accounts of these private group companies were adjusted in Rupee Term Loan of Rs 1,730 crore sanctioned by ICICI Bank under refinance of domestic debt under consortium arrangement on April 26, 2012, a CBI spokesperson had said.
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AGUSTAWESTLAND CASE: ED OPPOSES MIDDLEMAN'S PLEA TO MEET LAWYER IN PRIVATE

The Enforcement Directorate Saturday opposed the petition of Rajeev Saxena, a Dubai-based businessman wanted in the VVIP chopper case, seeking to meet his lawyer in private, saying it may hamper the probe. The ED made the submission in response to the plea moved by Saxena, who is in the agency's custody. Special judge Arvind Kumar directed the agency to file a detailed reply by Monday, when Saxena's custody ends. Saxena was deported from Dubai on January 31 and sent to 4-day ED custody the same day. The court had allowed his custodial interrogation after the agency alleged that he and another accused provided global corporate structure to launder money.
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DELHI COURT EXTENDS ED CUSTODY OF GAUTAM KHAITAN BY 6 DAYS IN FRESH MONEY LAUNDERING CASE

A Delhi court on Saturday extended by six days the ED custody of lawyer Gautam Khaitan, an accused in the AgustaWestland VVIP chopper scam, in connection with a fresh case of alleged possession of black money and money laundering Special Judge Arvind Kumar extended the ED custody of Khaitan, who was already being prosecuted in a case related to AgustaWestland and was out on bail.
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GOVT ISSUES NOTICE TO EX-CBI BOSS ALOK VERMA ON CVC FINDINGS AGAINST HIM

The government has sought comments of former CBI director Alok Kumar Verma, who superannuated on Friday without joining his last posting on three counts of misconduct found against him by a CVC inquiry conducted late last year on directions of the Supreme Court. The notice comes ahead of initiating departmental proceedings against him. With Verma also having refused to join his last posting as DG, Fire Services, Civil Defence and Home Guards despite MHA directions to do so, a fresh show-cause notice will now be sent to him citing a fourth count of unauthorised absence from work during the 20 days between his appointment and retirement. This will be added to the departmental proceedings that may be initiated after Verma’s reply, which must come in 30 days from receipt of notice. As per sources, the notice sent earlier to Verma by department of personnel and training (DoPT) based on the CVC inquiry, whose report was submitted to SC in November 2018, mentions three charges of misconduct on his part. There is inordinate delay in finalising the investigation report by CBI. Verma, being head of the organisation, should have ensured completion of investigation and further action within prescribed timelines. Failure to do so appears to have lead to the allegation of favouring Rajiv Singh, the CVC report had pointed out.
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NATIONAL HERALD: SONIA, RAHUL GANDHI START CROSS EXAMINATION OF COMPLAINANT, SUBRAMANIAN SWAMY

Sonia Gandhi and Congress president Rahul Gandhi Monday started cross examination of complainant and BJP leader Subramanian Swamy in the National Herald case. The Gandhis, through their lawyer, started cross examination of Swamy who had filed a private criminal complaint against them in the case. Swamy, in the complaint, had accused the Gandhis and others of conspiring to cheat and misappropriate funds by paying just Rs 50 lakh, through which the Young Indian (YI) Private Limited obtained the right to recover the Rs 90.25 crore that the Associate Journals Limited owed to the Congress.
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REALTY DEAL AT HEART OF ICICI PROBE AGAINST CHANDA KOCHHAR

Real estate transactions between the Kochhars and the Dhoots of Videocon Group pointed to the quid pro quo arrangement between them, said people with knowledge of the matter. These were a key element in the report that found former ICICI Bank chief executive Chanda Kochhar had violated the lender’s code of conduct by not disclosing conflicts of interest, they said. The report said the relationship between the two families was a longstanding one that began before Chanda Kochhar became CEO of ICICI Bank in 2009. The Kochhars’ residence at CCI Chambers, opposite the Cricket Club of India in south Mumbai, is said to have been bought from the Videocon Group in a complex transaction in the mid-1990s. The apartment was purchased through Credential Finance, a financial services firm established by Deepak Kochhar, Chanda Kochhar’s husband, and his brother Rajiv Kochhar. The Videocon Group too had a stake in Credential Finance. One of the main findings of the enquiry report has been linking their relationship (Kochhars and Dhoots). The relation went a long way back when they acquired their residential flat from parties linked to the Videocon Group, said one of the persons cited above. The report is quite detailed covering all the laws and talks about preponderance of probability and said such serious lapses — not informing the bank about conflict of interest with regard to Dhoots/Videocon Group — can’t be made by a person holding a senior position. Deepak Kochhar said there was no such involvement. The flat at CCI Chambers was conveyed from Bilquis Jahan Begum to me and my brother in February 1996, Deepak Kochhar told. Since then, I have been the owner and occupant till date. The conveyance deed and share certificate reflect the same. Videocon Group Venugopal Dhoot also denied being part of the deal. It (the flat) was owned by the Kochhar family from the beginning and we never ever had any ownership or other interest in the said flat, he told. The bank said it would deem her exit from the bank as a dismissal and revoked all financial entitlements. It plans to claw back all bonuses paid to her between April 2009 and March 2018. Chanda Kochhar did not disclose any relationship with Videocon or the Dhoots for years, the report said. It was only in April 2018 that she wrote to the bank’s board about her husband’s business dealings with Videocon.
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PONZI PROBE: CBI TO MOVE SC AGAINST OBSTRUCTIONS BY BENGAL GOVT, POLICE

After an all-out war broke out between Centre and the Mamata Banerjee government, CBI sources said the agency will move the Supreme Court on Monday, claiming its probe in ponzi scams was being obstructed by the West Bengal government and the state police. While calls and messages to interim CBI chief M Nageswar Rao, whose appointment is under challenge in the Supreme Court, remained unanswered, sources confirmed that the agency will move the Supreme Court on Monday to present their case. The fast-paced development started unfolding as soon as a team of 40-odd agency officers arrived at Kumar's residence at Loudon Street in central Kolkata Sunday afternoon, but they were stopped by sentries and officials. The team had gone to question Kumar in connection with chit fund scam cases. In a dramatic showdown with the Modi government, a furious Banerjee, wrapped in a brown woollen shawl, began a sit-in right in front of the Metro Cinema to protest insults she faced at the hands of Prime Minister Narendra Modi and BJP chief Amit Shah. Banerjee, one of the prime movers behind the effort to cobble together an anti-BJP alliance ahead of the Lok Sabha polls, claimed the CBI knocked on the doors of Kumar without a search warrant She alleged they want to impose President's rule in whichever states the opposition is in power. I can assure. I am ready to die but I am not ready to bow down before the Modi government and we won't allow imposition of Emergency please save India, save democracy, save the Constitution, she said. Banerjee asked all opposition parties to unite to bring down the Modi government and, in a rare exhortation by a political leader, called upon personnel of security forces of the Centre and states, besides the Army, to condemn the attitude of the Modi government.
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KOLKATA POLICE-CBI FACE-OFF: RAJYA SABHA ADJOURNED TILL 2 PM

Slogan shouting by Trinamool Congress members over alleged misuse of the CBI by the Centre led to adjournment of the Rajya Sabha till 2 PM on Monday. M Venkaiah Naidu asked agitated members to raise the issue during the debate on the Motion of Thanks on the President's Address but TMC members did not heed to the suggestion and started raising slogans like Save the Constitution and moved towards the Well. Naidu then adjourned the House till 2 pm. As soon as the ministers laid listed papers on the table of the House, some opposition members were on their feet. Naidu said he has received several notices, including from Derek O'Brien of the TMC on the CBI issue. I have not admitted any one of them (notices), Naidu said, adding members will get an opportunity to raise the important matter at length during the debate on the President's address.
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251 SEDITION CASES FILED IN ASSAM SINCE BJP CAME TO POWER IN 2016

Assam government has registered a total of 251 sedition cases since the BJP-led alliance came to power in the state in 2016, the Assembly was informed on Monday. Chandra Mohan Patowary said 251 sedition cases were filed against various individuals and banned organisations since May 26, 2016 when the present coalition government took charge. Patowary said sedition cases have been filed against militant groups such as ULFA(I), NDFB (S), NDFB(B), KLO, NSLA, NSLA(AT), UPLFS, DHD, DHNA, NSCN(IM), ZUF and ATF among others. Such cases were also registered against several individuals, Patowary said on behalf of Chief Minister Sarbananda Sonowal who also holds the Home portfolio. The Bill, passed by the Lok Sabha on January 8, seeks to grant Indian citizenship to non-Muslims who fled religious persecution from Bangladesh, Pakistan and Afghanistan, and entered India before December 31, 2014.
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CAIRN INDIA-VOLCAN INVESTMENT TRANSACTION MET GOVT STANDARDS, SAYS VEDANTA

Clarifying the Cairn India-Volcan Investment transaction, Anil Agarwal-led Vedanta on Monday said the structure provides significantly higher returns compared to other overseas cash management investments that would typically return around two per cent. Last week, Vedanta announced that Cairn India Holdings Limited, would invest $5 billion in Volcano Investment Limited, the parent company of Vedanta Limited, as part of the structured investment representing the economic interest in the upside potential of 24.71 million shares or 1.8 per cent outstanding shares of Anglo American PLC. Volcan Investment holds 21 per cent stake in Anglo American PLC, which is a globally diversified mining business that comprises of De Beers (the largest diamond entity), copper, platinum and other precious metals, iron ore, coal and nickel. "We remain committed at all times to act in the interest of all shareholders and look forward to continued engagement with them," said Vedanta in its release.
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NTPC TO CHALLENGE RS 2,000-CRORE ARBITRATION AWARD TO JINDAL ITF

State-owned power producer NTPC Ltd (National Thermal Power Corporation Limited) said it would take up legally the arbitration tribunal’s order against it to shell out over Rs 2,000-crore to Jindal ITF in interest payments. Jindal ITF is a subsidiary of Jindal SAW. NTPC would have to pay extra interest depending on time between the date of filing of the arbitration and when they pay up, Jindal ITF lawyer Manoj K Singh said. So this future interest component and other costs, such as the cost of litigation, will come to around Rs 300 crore, which takes the total sum awarded to somewhere around Rs 2,300 crore, Singh said. In 2011, NTPC had signed a contract with Inland Water Authority of India (IWAI) and Jindal ITF for transportation of coal to its 2,100-Mw power plant located at Farakka, West Bengal through inland waterways. As a part of the contract, Jindal ITF was mandated to move coal from the high seas to NTPC’s Farakka thermal power plant. NTPC had also assured Jindal ITF that a minimum of 3 million metric tonnes (MMT) of coal would be transported per year through the latter. The agreement also mandated if NTPC didn't stick by the volume, it would pay Jindal ITF transportation fee for 90 per cent of 3MMT of coal. During arbitration proceedings, Jindal ITF claimed it has spent more than Rs 650 crore on the purchase of a transhipper, 30 barges, and also invested in creating necessary infrastructure such as conveyor belts. The project, however, ran into problems, first with the Environment ministry approving the transport of only 1.5 MMT and, later, the coal ministry's decision to stop the import of coal altogether. While the environment ministry later gave its nod to the transport of 3 MMT of coal, the government’s decision to stop the import of coal held up work on the Farakka thermal power plant. The Centre had blocked the import of coal between 2014 and 2018, but resumed it in the later half of 2018 owing to the fossil fuel's shortage in India.
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SUPREME COURT SEEKS CBI RESPONSE ON AJAY KUMAR BASSI TRANSFER

The Supreme Court on Friday sought the CBI’s response to a petition by DSP Ajay Kumar Bassi challenging his transfer back to Port Blair within days of its revocation by then CBI director Alok Verma during his two-day stint following reinstatement by the SC. Appearing for Bassi, senior advocate Rajiv Dhavan said such flip-flop in transferring an officer, who was actively involved in the investigation of a sensitive case, reflected badly on the CBI’s independence. A bench of Chief Justice Ranjan Gogoi and Justice Sanjiv Khanna sought the responses of CBI and its interim director M Nageswara Rao in six weeks. Bassi was transferred to Port Blair on October 24 after the Centre divested Verma of his powers as CBI chief on October 23.
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SUSPECTED JMB TERRORIST ARRESTED BY WB POLICE IN KERALA'S MALLAPURAM

A joint operation by the West Bengal Police Special Task Force and the Kerala police led to the arrest of terror suspect Abdul Matin from Kerala's Mallapuram on Friday. Hailing from Assam's Barpeta district, Matin is one of the 15 trainees from the Simulia Madrasa and Mokimnagar Madrasa in West Bengal's Bardhman district. He was trained along with Nasirullah, a JMB terrorist, who is also an accused in the 2014 Khagragarh blast in Bardhman.
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BHIMA KOREGAON VIOLENCE CASE: ANAND TELTUMBDE RELEASED, PUNE COURT TERMS ARREST ILLEGAL

Writer and academic Anand Teltumbde was released by a Pune court after he was produced before it on Saturday afternoon. The court termed his arrest by the Pune police in the early hours of Saturday in Mumbai illegal and observed that the protection granted to him was for four weeks, and that either the Bombay High Court or the Supreme Court would have been the competent authority to take a call on his arrest following the rejection of his anticipatory bail plea. Mr. Teltumbde was arrested near the domestic terminal of the Chhatrapati Shivaji International Airport in Mumbai as soon as he landed from Kochi. He was first taken to the airport police station, where a diary entry was made, and later to Pune.
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ELGAAR PARISHAD CASE: SETBACK FOR PUNE POLICE AS COURT RULES ANAND TELTUMBDE’S ARREST ‘ILLEGAL’

A Pune court on Saturday ruled that the arrest of Anand Teltumbde, a professor of Goa Institute of Management, by city police earlier in the day was illegal. The court upheld the defence plea that the arrest of Teltumbde from Mumbai airport was a violation of the Supreme Court order of January 14 which had granted him protection from arrest for four weeks. The professor has now been released. What has happened (arrest by Pune Police) is highly embarrassing for a person of international stature like me. I claim that there are very few people with a profile like me, Teltumbde said after being released. Defence lawyer Rohan Nahar argued before the court that the Pune police’s action was in contempt of the apex court order. The entire action taken by Pune Police is illegal and contemptuous. A plain reading of the order of the Hon’ble Supreme Court will denote that the protection offered to the said accused (Teltumbde) is in force till February 11, the lawyer said in his plea before the court. While investigating the alleged naxal involvement of the name accused, Pune Police claimed to have stumbled upon evidence that uncovered larger conspiracies and activities of banned group CPI-Maoist. Police claim that the searches against the activists, and their later arrests, were based on such evidence that allegedly showed these activists’ involvement in the activities of CPI-Maoist.
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OVER 4,000 CITIES DECLARED OPEN DEFECATION FREE UNDER SWACHH BHARAT

Over 4,000 urban cities have been declared open defecation free (ODF) under the Swachh Bharat Mission, an official at the Housing and Urban Affairs Ministry said. Out of the total 4,378 urban cities, 4,140 have already been declared ODF in the country, he said. The official said almost all the urban cities will become ODF by the next month under the Swachh Bharat Mission, a flagship programme of the Narendra Modi government. Of the actual targets of building 62,42,220 individual toilets, more than 93 per cent have already been constructed. The ministry has also achieved the 100 per cent target of building community and public toilets with the construction of five lakh such toilets, the official said. Apart from this, door-to-door collection of solid waste is in place in 72,503 municipal wards out of 84,229 wards, a target of 86 per cent achieved.
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DELHI METRO DECIDES TO TAKE OVER THE OPERATIONS OF GURGAON RAPID METRO

In an apparent rescue act, Delhi Metro has decided to take over the operations of Gurgaon Rapid Metro, second such move after doing so with Airport Express Metro in 2013. Gurgaon Rapid Metro is owned by IL&FS Transportation Network Ltd (ITNL) — a subsidiary of the bankrupt IL&FS group. According to the minutes of the meeting held between the state government of Haryana and managing director of Delhi Metro, Mangu Singh, the project will be taken over by DMRC for a period of five years. From the start of the service on February 5, operations of Rapid Metro will be taken over by DMRC. The services will be run according to the existing timetable and fare, according to the minutes of the meeting.
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AUTOMATION IMPACT: 76 PER CENT INDIAN EMPLOYERS PLAN TO INCREASE, MAINTAIN HEADCOUNT

Notwithstanding the increasing adoption of automation, 76 per cent of employers in India plan to increase or maintain their headcount while the global figure stands at 87 per cent, says a report. According to a ManpowerGroup report, companies that are digitising are growing, and that growth is producing more and new kinds of jobs. Organisations that are already automating tasks and progressing their digital transformation are most confident of increasing headcount, it said. As more and more robots are being added to the workforce, we, as leaders, must ensure that humans are integrated with machines, as this is the need of the hour, said Manmeet Singh, President – Experis, ManpowerGroup India. Accordingly, upskilling is on the rise, 84 per cent of companies plan to upskill their workforce by 2020, up from just 21 per cent in 2011.
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ASHWINI KUMAR CHOUBEY CHAIRS 6TH MEETING OF MISSION STEERING GROUP OF NHM

The Government is rapidly moving forward in providing Comprehensive Primary Health Care through Health and Wellness Centres (HWCs). I am happy to inform that about 8000 HWCs have become operational in 35 states / UTs. Choubey said that NHM is vital to supporting the states in improving their health systems. He further stated that Hon’ble Prime Minister’s announcement of the heightened focus on the aspirational districts also provides us with significant leverage point to address long persisting inequities and development lag in these districts. This will be strengthened through NHM. The MSG of the NHM discussed various agenda points including enhancement of reach, outlay and facilities within components of the NHM, Prevention and Control of Viral Hepatitis, Immunization, Comprehensive Primary Health Care, Non-Communicable Diseases (NCDs) Newer Intervention under Revised National TB Control Programme with respect to Patient’s Support and Private Sector Involvement, capacity building of health workers, etc. Many suggestions were also made by the non-official members of the MSG.
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GOOGLE TALENT ADVANTAGE ERODES AS MORE WORKERS DOUBT CEO SUNDAR PICHAI’S VISION

Alphabet Inc.’s Google became the most-profitable internet company by recruiting talented technologists and inspiring them enough to keep them around. That advantage may be slipping as some workers increasingly doubt the leadership and vision of Chief Executive Officer Sundar Pichai, according to recent results from an employee survey. The annual internal poll, known as Googlegeist, asked workers whether Pichai’s vision of what the company can achieve inspires them. In response, 78 percent indicated yes, down 10 percentage points from the previous year. Another question asked if employees have confidence in Pichai and his management team to effectively lead Google in the future. Positive responses represented 74 percent of the total, an 18 point decline from a year earlier. There were similar declines for questions about Pichai’s decisions and strategies, his commitment to diversity and inclusion, and the compensation the company pays, according the results, which were viewed by Bloomberg News. Google shares the results with all employees to make sure concerns are heard. This time, 89 percent of workers took the survey. While the survey findings are still mostly positive, the declines are a worrying shift for Google, which prides itself on high employee morale, luxurious working conditions and high pay. If these things are beginning to erode, the company could lose talent to other technology companies, undermining its ability to build new services that drive its profitable advertising business.
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GOOGLE EMPLOYEES' TRUST IN PICHAI'S LEADERSHIP DECLINES

Far less Google employees are now positive than a year ago about the company's chief executive officer (CEO) Sundar Pichai and his management team's ability to effectively lead in the future, a media report said. In late 2018, about three in four (74 per cent) Google employees said they were positive, as opposed to neutral or negative, about Pichai's ability to effectively lead the company, down from 92 per cent positive the year before, according to Google's latest annual survey on employee satisfaction, the WIRED reported on Saturday. The results of the annual survey, shared internally in January, showed that the employee confidence at Google is at its lowest in as many as six years. The findings also revealed decline in employees' satisfaction with their compensation with 54 per cent saying they were satisfied, compared with 64 per cent a year ago.
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INDIA ISSUES DEMARCHE TO US OVER DETAINED STUDENTS

India on Saturday said it had issued a demarche to the American Embassy in New Delhi, expressing concern over the detention of some Indian students in the US and seeking immediate consular access to them. The foreign ministry in a statement said India continued to closely monitor the situation arising out of the detention of Indian students in connection with their enrollment in a fraudulent university in the US. One-hundred-thirty foreign students were arrested by the US authorities for enrolling at a fake university allegedly to remain in the US. News reports said many of them were Indians. The Immigration and Customs Enforcement agents made the arrests on Wednesday. Our concern over the dignity and well-being of the detained students and the need for immediate consular access for Indian officials to the detainees were reiterated, the foreign ministry said in a statement. In its statement, the foreign ministry said it had underlined to the US Embassy that students, who were duped into enrolling in the university should be treated differently from those recruiters who duped them. We have urged the US side to share full details and regular updates of students with the government, to release them from detention at the earliest and not to resort to deportation against their will, the statement said.
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CHINA TO PROVIDE USD 2.5 BILLION LOAN TO PAKISTAN TO BOOST FOREIGN CASH RESERVES

China will provide USD 2.5 billion in loans to Pakistan to boost the foreign exchange reserves of its all-weather ally, a media report said Saturday. Pakistan is nearly broke with the drying up of foreign cash reserves and mounting external debt. The country's USD 8.12 billion reserves, which are below the minimum level that the International Monetary Fund (IMF) and the World Bank (WB) prescribe, are sufficient to cover only seven weeks of imports. Due to this, the WB and the Asian Development Bank are not providing loans for budget financing Beijing will place the USD 2.5 billion in deposits with the central bank, a top Finance Ministry official here told. With the anticipated USD 2.5 billion deposits, China's contribution in this fiscal year alone would surge to USD 4.5 billion, the paper said. Pakistan has struggled to maintain reserves that are not currently sufficient to provide cover to even two months of imports despite receiving USD 4 billion in loans from two Middle-Eastern countries. Pakistan has secured USD 14.5 billion worth of commitments from these three countries that have helped largely bridged the external financing gap of the ongoing fiscal year.
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US SUSPENDS NUCLEAR ARMS CONTROL TREATY WITH RUSSIA

The Trump administration said on Friday that it was suspending one of the last major nuclear arms control treaties with Russia, following five years of heated conversations over accusations by the United States that Moscow is violating the Reagan-era agreement The decision has the potential to incite a new arms race — not only with Russia but also with China, which was never a signatory to the 1987 Intermediate-Range Nuclear Forces Treaty, widely known as the INF. It also comes as the United States has begun building its first long-range nuclear weapons since 1991, a move that other nations are citing to justify their own nuclear modernization efforts. Taken together, the two moves appear to signal the end of more than a half-century of traditional nuclear arms control, in which the key agreements were negotiated in Washington and Moscow. It is unclear whether President Donald Trump plans to replace the INF or to renew another major treaty called New START, which drove American and Russian nuclear arsenals to their lowest levels in nearly 60 years. That accord expires in 2021, just weeks after the next presidential inauguration. Secretary of State Mike Pompeo announced the decision to suspend the accord, declaring that countries must be held accountable when they break the rules. We can no longer be restricted by the treaty while Russia shamelessly violates it, Pompeo said, adding that the United States would terminate the accord in six months unless Russia destroyed its growing arsenal of intermediate-range missiles and launchers.





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