Friday, 15 February 2019

TAXATION UPDATES 15.02.2019





AT LEAST 34 CRPF PERSONNEL KILLED IN SUICIDE ATTACK IN KASHMIR'S PULWAMA DISTRICT

In the worst ever terror attack in Jammu and Kashmir since militancy erupted in 1989, a suicide bomber on Thursday rammed his SUV packed with explosives into a CRPF bus on the Srinagar-Jammu highway in Pulwama district, killing at least 44 troopers and injuring many others The Pakistan-based Jaish-e-Moahammad (JeM) claimed responsibility for the bloodbath and released a video clip of the suicide bomber which it claimed was shot before the young man carried out the audacious attack in Lethpora, about 30 km from Srinagar. The group said one of its commanders, Adil Ahmad Dar, was the suicide bomber. Police sources and other officials said the suicide bomber-driven SUV came along the Central Reserve Police Force (CRPF) bus when a 78-vehicle convoy carrying 2,547 security personnel was going from the transit camp in Jammu to Srinagar and rammed it into the bus around 3.15 p.m., triggering a deafening explosion. The first report spoke of eight deaths. But the death toll quickly mounted as other CRPF personnel who rushed towards the targeted bus found it in a mangled heap. The bus was said to be transporting 39 troopers. CRPF officials said the bus which was the main target of the militants was destroyed fully while another CRPF vehicle was partly damaged. It is difficult to believe how anyone in the bus could have survived, said a police officer. Jammu and Kashmir Police chief Dilbag Singh said it could have been a suicide attack. This was confirmed by other officials later. In a statement to a local news agency GNS, a caller claiming to be a spokesman of JeM said it was a 'fidayeen' (suicide) attack. Prime Minister Narendra Modi led the nation in condemning the horror. The attack is despicable. I strongly condemn this dastardly attack. The sacrifices of our brave security personnel shall not go in vain. The entire nation stands shoulder to shoulder with the families of the brave martyrs, he tweeted.
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GST: THRESHOLD RAISED FOR SUPPLIERS OF GOODS IN MOST STATES

From April 1, all the States barring Kerala and Telangana, and two Union Territories (with assemblies), will have higher annual threshold limits for mandatory registration for GST for goods suppliers. There is no change in the limit for service providers. According to information available with the Finance Ministry, 18 States and two UTs have exercised an option to revise the annual threshold limit for nine States, the option was deemed to have been exercised. Two UTs and all the 29 States were asked to select their option — whether to raise the limit or maintain status quo. It was a one-time exercise meant mainly to benefit micro, small and medium enterprises (MSMEs.) The GST Council, in its meeting on January 10, had decided that there would be two threshold limits for goods suppliers — 40 lakh (for the bigger States apart from Himachal Pradesh, Assam and J&K) and 20 lakh (for the seven North Eastern States apart from Uttarakhand and Puducherry). At present, these limits are 20 lakh and 10 lakh, respectively. It was also decided that the States would have a week to decide on one of the two limits The threshold for registration for service providers would continue to be 20 lakh, and in the case of Special Category States, 10 lakh. According to a senior Finance Ministry official, the Kerala government had said it would keep the threshold limit at 20 lakh but subsequently said it was still under consideration. No further communication was received from them, he said. Similarly, the Telangana government said it would maintain status quo till a decision is taken by the Chief Minister. Meanwhile, another Finance Ministry official clarified that the States have time till March 31 to select their option and inform the Centre about it.
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INDIA ENDS MFN STATUS TO PAK, JAITLEY SAYS WILL ENSURE ITS GLOBAL ISOLATION

India on Friday withdrew the Most Favoured Nation (MNF) status accorded to Pakistan a day after 39 CRPF personnel were killed in the deadliest terror attack on security forces in Jammu and Kashmir's Pulwama. At a security review meeting, Prime Minister Narendra Modi said those behind the terror attack would pay a very heavy price for the huge mistake. Arun Jaitley said the government has decided to take all possible diplomatic steps to ensure Pakistan's global isolation and that India has withdrawn Most Favoured Nation status to the country. The ministry of commerce will take the necessary steps to withdraw most favoured nation status given to Pakistan. India will consult with all nations to implement it and engage with the international community to ensure measures against terrorism are now adopted at the earliest, Jaitley added. Removal of this status means India can now enhance customs duties to any level on goods coming from Pakistan, a trade expert said.
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ENDING MFN STATUS FOR PAKISTAN AN UNPRECEDENTED MOVE, SAY TRADE OFFICIALS

With India exploring every possible way to respond bilaterally to Pakistan including an economic offensive, Commerce Department officials remain wary of a proposal to revoke the Most Favoured Nation (MFN) status given to the neighbouring country. While the prospect of economic sanctions will have little effect on Pakistan, owing to negligible bilateral trade between the nations revoking the MFN status India granted to Pakistan back in 1996 has been argued earlier as well, as a plausible way of sending a strong message to the country. While economic offensive can take many forms revoking Pakistan’s MFN status may be an unprecedented move on India’s part, Commerce officials told. Revoking MFN status is frowned upon in multilateral trade forums as countries tend not to revoke the MFN in cases apart from economic hostility by a trade partner, a senior Commerce Department official said. India is also mulling the option of dragging Pakistan to the dispute settlement body of the WTO because of this. However, Islamabad has the choice to cite ‘security exceptions’ in Article XXI of GATT, under which a member-country may not grant MFN to another member on grounds of security as an excuse for withholding MFN status to India, a trade expert said. However, PHD Chamber of Commerce and Industry, with sizeable representatives from Punjab, said it is willing to sacrifice trade with Pakistan for the country.
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EC MOOTS CHANGES: 5-YEAR I-T RETURNS, FOREIGN ASSETS, MANDATORY PAN

The Election Commission of India has sought changes in the affidavit candidates file along with their nominations. In a letter to the Union law ministry this week, EC has suggested candidates be asked to declare income-tax returns of the last five years (of self, spouse and Hindu Undivided Family), details of all foreign assets and mandatory disclosure of PAN, or its unavailability, in Form 26. EC sought changes to Form 26 at the earliest so that the amended document can be circulated to all stakeholders well before the next round of elections The changes have been mooted following suggestions of the Central Board of Direct Taxes at a commission meeting held last week. The changes will require modification in clause of the Conduct of Election Rules, 1961, and make it easier for CBDT to identify mismatch in candidates’ assets and publicise it. The proposed amendments to Form 26 will be key to making part of CBDT’s verification report of candidate affidavits public from now on. EC and CBDT are preparing to disclose names of candidates in whose election affidavit discrepancies have been found and also under which law it was taking action, sources said. The issue of putting in public domain income-tax investigation director general’s verification reports of mismatch between assets declared in Form 26 and returns has been hanging fire for years. Though CBDT already ‘verifies’ electoral affidavits, based on five criteria decided with EC in 2013, the report is never made public though I-T and other departments act on the cases. CBDT had told the Supreme Court in 2017 that it was investigating cases of 7 Lok Sabha MPs and 257 MLAs but so far resisted EC’s constant nudge to make ‘verification reports’ public by citing Section 138 of the Income-Tax Act. The section prohibits sharing information on I-T assesses. However, the EC held that a verification report was not an investigation report and could be made public as it was in voter interest. Once such information is in public domain, a complaint can be filed under Section 125A of the Representation of People Act against a legislator for declaring wrong/false information.
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GST APPELLATE TRIBUNAL FORMATION: ALLAHABAD HIGH COURT SEEKS RESPONSE FROM GOVT

The Allahabad High Court, on Wednesday, asked the State Government about the steps taken by it for the formation of the GST Appellate Tribunal in the State. Justice Bharati Sapru and Justice Piyush Agrawal was hearing a petition filed by M/s Torque Pharmaceuticals Private Limited, wherein the Court directed that some responsible officers from the state government, as well as GST Council, shall appear before the court on February 28 to apprise it about the move taken for establishing the GST Appellate Tribunal. In this matter learned counsel for the G.S.T. Council is unable to tell as to whether the Tribunal is constituted or not. Learned standing counsel appearing for the State is also unable to tell as to whether the State has moved in the matter or not, the bench said. While listing the matter to 28th February for hearing, the bench directed the counsel for GST Council, Om Prakash Srivastava and state government counsel Nimai Das to communicate the order to the state government authorities concerned for compliance. Under Section 109 of GST Act, the Central government on the recommendation of the state government will constitute an appellate tribunal know as GST Appellate Tribunal, for hearing appeals against the orders passed by the appellate authority or revisional authority. Counsel for the petitioner contended that despite clear-cut provision for setting up of the appellate tribunal, no GST Tribunal has been set up in the state so far. As a result, the assessees of GST are facing problems in the state.
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COMPANIES STARE AT CASH FLOW PROBLEMS DUE TO NEW CREDIT UTILISATION RULES

A tweak in the rule of how Goods and Services Tax (GST) credit should be availed is set to create a major cash flow problem for several companies beginning this month. The government late last year had come out with credit utilisation mechanism that companies have to follow beginning this month. Under the GST framework, to avoid double counting of taxes, companies can accumulate tax paid on raw materials against those levied on goods they sell. Prior to the regulation companies could set off IGST credit against both CGST and SGST. However, as per the new utilisation regulations this cannot be done And IGST credit has to be first utilised before availing CGST or SGST credit. Tax experts say that this has started to result in situations where on one hand companies have credit lying on their books but they still have to end up paying GST in cash. This amendment has become a point of worry for most industry players as they may now have to pay SGST liability in cash even in scenarios where prior to this amendment these could be paid by utilizing credits; the reason being the introduction of this new rule of utilization of IGST credit, said Abhishek Jain. IGST credit is basically accumulated by companies that import goods or have vendors outside the state they are based. Most of the businesses have started facing the trouble said industry trackers. Tax experts say that in the coming months this regulation could also result in litigation. The main objective of GST is that there should be no tax cascading but the underutilised or non-utilised credit would lead to exactly that. The constitutional validity of this tax cascading could be challenged in court as credit refunds could only be availed under the inverted duty structure, said Abhishek A Rastogi. The only way companies can solve the problem is by altering their supply chain structures. This, say industry experts, may not be possible for most companies as supply chains cannot be determined merely to save taxes. In several situations this means that IGST credit is utilised against IGST and CGST tax liability. And even when companies are left with CGST or SGST credit, that cannot be used to set off remaining CGST or SGST taxes. Industry trackers say that for many companies that have national presence they would see that in one state they would have huge credit lying while in other states they would have huge pending taxes.
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INPUT CREDIT WITHDRAWAL TO HURT BUILDERS, CONSUMERS

The panel's suggestion to slash the Goods and Services Tax (GST) rate and withdraw the input tax credit (ITC) for properties under construction could prove counterproductive for builders, consumers and may encourage evasion, say industry experts. A tax consultant, told that if the recommendation of the Group of Ministers (GoM) was accepted then the real estate builders would lose out ITC on raw materials such as cement and steel, which currently attract GST rate of 28% and 18%, respectively. In the real estate sector, steel and cement constitute a major chunk of the input used by it. Both of which come under higher GST rate brackets (28% and 18%). Now, if the real estate builder is not able to get the credit on these two inputs it is getting today, he will be worse off and would increase the price for his customer, he said. The government is currently levying 12% GST on properties under construction and 8% on affordable housing. This is hurting the sector and has led to a big drop in sales of under construction apartments and houses. Many property builders have been lobbying for rationalisation of GST rate. The GST Council, which is expected to meet next on February 20, will now consider the recommendation of the panel and approve it.
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MULTI-CRORE SCAM INVOLVING GST EVASION THROUGH RLYS UNEARTHED

A scam of Goods and Services Tax (GST) evasion, which could run into several crores involving several Multi National Companies (MNCs) and top national industries, has surfaced in the State with companies in connivance with some of the Railways officials transporting goods from New Delhi or other Stations to Jammu without payment of the GST Gareeb Dass told the Excelsior that a high level independent inquiry has been ordered into the reports of tax evasion scam running into several crores after the matter was brought to his notice by top officials of Jammu and Kashmir, engaged in implementation of the GST rules. We have started an independent inquiry into the scam and will shortly come out with details. Stern action under the rules will be taken against all those found guilty, the Director Vigilance said. Elaborating on modus operandi of the scam, sources said, the companies, which included some prominent names in the market having annual turnover of thousands of crores, used to book bogies on lease in the train for transportation of their goods from New Delhi or any other destination to Jammu without payment of GST on the goods. The goods were off-loaded with the help of Railways staff either at Jammu, Udhampur or Katra depending upon the situation, where there was no checking at that particular time, and then safely shifted to godowns of the companies in the State, sources pointed out. They said that in case of surveillance at all three major stations of Jammu, the Railways staff sometime used to send back the items to New Delhi and they were brought back in another train when the surveillance was over, sources said, adding that some of the Railways staff was involved in the racket and were in constant touch with each other, both at Jammu and New Delhi besides other places to facilitate transportation of goods without taxes. Senior Railway officials were not available for comments. This modus operandi was going on for the past quite some time but situation seems to have aggravated during past few months when the authorities discovered gap in collection of taxes and during surprise raids detected that goods were being smuggled in bogies of the trains from New Delhi or some other States to Jammu without payment of the taxes, sources said, terming the scam as that of very serious nature in which the Central and State Governments might have lost SGST and CGST worth several crores.
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KARNATAKA: KUMARASWAMY GOVERNMENT MANAGES TO PASS FINANCE BILL

The H.D.Kumaraswamy-led coalition government on Thursday managed to pass the Appropriation Bill or Finance Bill not only allaying fears that several within its ranks could turn hostile but actually emerging stronger as an alliance than how they started the session The return of Congress rebels and the support extended by an independent legislator helping the coalition pass the all important Finance Bill even though not even a minute of the session was used to discuss the budget. Interestingly, the three hour and four minute long budget speech last Friday, which Kumaraswamy claimed was the longest ever, accounting for almost 20% of the time in a session that functioned for just over 15 hours since 6 February. Chief minister Kumaraswamy's decision to release an audio recording to corner the Bharatiya Janata Party (BJP) on budget day dominating the entire proceedings of the house, that is likely to reconvene only after the conclusion of the Lok Sabha elections. Though the session, that concluded on Thursday, was dominated by protests by the BJP over the government's insistence of setting up a special investigation team (SIT) to probe the contents of the audio recording, the attack on Preetham Gowda's house in Hassan, the sexist and insensitive remarks by the assembly speaker K.R.Ramesh Kumar among other issues that did not include the budget.
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ED ATTACHES PROPERTIES WORTH RS 904 CRORE OF DS KULKARNI

The enforcement directorate (ED) on Thursday attached immovable properties worth Rs 904 crore of city-based developer D S Kulkarni, popularly known as DSK, in the money laundering case filed against him. The action was initiated under the provisions of the Prevention of Money Laundering Act, 2002. The ED seized land, buildings, flats, bank deposits, policies and other properties of DSK. More than 35,000 investors/depositors have allegedly been cheated by the arrested builder. According to the ED, the DSK group cheated people of Rs 1,129 crore in the deposit schemes started by Kulkarni, his wife Hemanti and son Shirish. They were acting on various positions in the companies under the DSK Group of Companies which was involved in the real estate, automobile, sports, information technology and education sectors. The flagship company was D S Kulkarni Developers Limited (DSKDL).
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SC TO HEAR PLEA AGAINST LAW ON LAND ACQUISITION NEAR DISPUTED AYODHYA SITE

The Supreme Court Friday decided to hear a fresh plea challenging the constitutional validity of the 1993 central law by which 67.703 acre land, including the disputed premises of Ram Janambhoomi-Babri Masjid at Ayodhya, was acquired. A bench headed by Chief Justice Ranjan tagged the matter with the main petition in which a constitution bench is dealing with the main title dispute. List the matter before the bench already seized with the issue, the bench also comprising Justice Sanjiv Khanna said.
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PULWAMA TERROR ATTACK: PM MODI SAYS ATTACKERS AND THEIR SUPPORTERS WILL PAY HEAVY PRICE

Prime Minister Narendra Modi on Thursday said that those who have targeted India and attacked the CRPF soldiers in Jammu and Kashmir will have to pay a heavy price He said the neighbour (Pakistan) thinks that terror attacks can weaken India, but they will not be successful. My condolences to families of those martyred in Pulwama attack, those behind the terror strike will be punished, Modi said and and urged the world to come together to crush terrorism. PM also said that Indian security forces have been given a free hand to reply. Security forces have been given complete freedom, the blood of the people is boiling, Modi said.
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JAITLEY LIKELY TO CHAIR GST COUNCIL MEET NEXT WEEK; LOWER LEVY FOR HOUSING ON THE CARDS

Arun Jaitley is likely to chair the 33rd meeting of the GST (Goods and Services Tax) Council on February 20, which among other things will consider slashing tax on under-construction flats The meeting could be the last one before the code of conduct for the general elections comes into effect. Jaitley, who has just returned from the US after treatment, is expected to resume work soon. Meanwhile, officials in the Finance Ministry said the agenda for February 20 meeting will include proposal to lower GST on under-construction flats and affordable housing A Group of States’ Finance Ministers (GoFMs) has favoured lowering GST rates on residential houses to 5 per cent without input tax credit and to 3 per cent for those under affordable housing. Both the rates will be without input tax credit and one condition for 5 per cent is to source at least 80 per cent of materials from a GST-registered supplier. Another issue likely to be taken up at the meeting is some relief for the exporters. As of now, exporters get refund of basic Customs duty and no compensation for other levies which makes it difficult for them to be competitive. Now an effort is being made to provide duty-drawback kind of scheme where benefits will be provided through e-wallet. Such a mechanism will help exporters deal with the issue of working capital.
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ICAI TO TRAIN 1 LAKH STUDENTS ON GST ACCOUNTING

The Institute of Cost Accountants of India (ICAI) will be launching a course in Goods and Services Tax (GST) accounting in a about a month from now. We are in discussions with Government and modalities are being worked out Amit Anand Apte, told. The 50-hour course will be effectively free for students as the Centre will totally bear the cost of course for one lakh candidates. The cost of course could be around 5,000 per candidate. There will be an all-India entrance exam with a nominal fee to screen the aspirants. All commerce graduates and those who are pursuing graduation will be eligible to take exam. Most of the SMEs are facing problems and we want to train one lakh accountants over next one year. Apte said adding that the requirement for GST accountants for SMEs could be two lakh. In the recent placements for ICAI students, the average annual salary per annum was 7.5 lakh while the highest was 17.5 lakh, he said.
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CANNOT DISCLOSE DATA ON PHONE TAPPING PERMISSIONS: MHA

Information on permissions given to central agencies for phone tapping cannot be disclosed as it would prejudicially affect interests of the state might endanger a person or impede the process of investigation, the Home Ministry said in response to an RTI query. The applicant had sought to know the number of sanctions issued by the ministry to central agencies permitting them to intercept phones between 2009 and 2018. He had also asked for data related to the number of times an agency had sought permission to tap phones and about permissions being denied by the ministry. The applicant did not seek any specific details such as cases, individuals, file noting from the ministry. The Home Ministry invoked three exemption clauses from the RTI Act to withhold the information without giving any reasons. Giving reason is mandatory in case information is being denied by a public authority. The ministry took refuge under Section 8(1)(a) of the RTI Act to withhold data. The section exempts disclosure of information that will prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State, relation with foreign State or lead to incitement of an offence. It also cited section 8(1)(g) which exempts information that would endanger the life or physical safety of any person or identify the source of information or assistance given in confidence for law enforcement or security purposes. This is absolute nonsense. These clauses cannot be applied in such a summary manner. It was a wrong order from the Central Public Information Officer (CPIO). Such details should have been publicly displayed under Section 4 of the RTI Act. Whenever such exemptions are invoked strong reasons must be given to justify them, former Central Information Commissioner Shailesh Gandhi told.
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I-T DEPT RELEASES COFFEE DAY'S MINDTREE SHARES; ATTACHES PROMOTER'S STAKE

Coffee Day Enterprises Thursday said the Income Tax Department has released 74.90 lakh attached shares of IT firm Mindtree, owned by the company and its promoter V G Siddhartha, but attached Siddhartha's 46.01 lakh shares in Coffee Day Enterprises over potential tax demand. Last month, Income Tax Department had attached 74.90 lakh shares of Mindtree, in which 22.20 lakh shares belonged to Coffee Day Enterprises and 52.70 lakh shares belonged to its promoter Siddhartha. The company and the promoter, VG Siddhartha, have received orders dated February 13, 2019, for release of provisional attachment of Mindtree shares under section 281B of Income Tax Act, 1961 vide ordered on January 25, 2019, Coffee Day Enterprises said in a regulatory filing. In a separate filing, Coffee Day Enterprises, which operates popular coffee chain Cafe Coffee Day (CCD), said, VG Siddhartha has received an order under section 281B of Income Tax Act, 1961 February 13, 2019, provisionally attaching 46,01,869 shares of Coffee Day Enterprises held with Way 2 wealth Brokers of VG Siddhartha to safeguard the interest of the revenue in respect of likely future tax and penality obligations in respect of open assessments. The company said it would like to clarify that in response to notices under section 148 and 153A of the Income Tax (Act), the promoter (Siddhartha) has filed required revised returns and discharged all the tax liability along with the revised returns. Further there is no undisputed tax liability for the promoter it added.
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WASTING COURT’S TIME COSTS TATA SHAREHOLDERS 14 LAKH

A three-year-old legal tussle between the Tata Group and some of its minority shareholders in a matter related to the ouster of Nusli Wadia as an independent director has cost the shareholders 14 lakh The Bombay High Court has imposed costs on the entities for wasting substantial judicial time after the petitioners decided to withdraw their suit without offering any reason. In an order on February 6, Justice K.R. Shriram ordered the four plaintiffs to pay a total of 14 lakh after the defendants, including the Ministry of Corporate Affairs, highlighted the fact that due to the suit they had to incur substantial costs in hiring senior advocates. The suit is today being withdrawn unconditionally without any reason being offered. Therefore, in my view, it will be only appropriate that costs are imposed on plaintiffs, the order said. All the counsels present today for defendants, except counsel for defendant no. 8, in unison, state that substantial judicial time has been spent and substantial costs had been incurred by defendants and press for costs. I have seen copy of order dated 16.12.2016 and it appears that not less than 10 senior advocates have appeared for the defendants. There are other dates also when various senior advocates have appeared for defendants, Justice Shriram said in the order. Nusli Wadia, one of the defendants, submitted that he did not want to claim any costs. Incidentally, the matter has seen senior advocates. Of the total costs of 14 lakh, an amount of 2 lakh each will have to be paid to Tata Memorial Hospital, Mumbai Police Welfare Fund, Free Opthalmic Hospitals Society and The Bombay Society for the Prevention of Cruelty to Animals.
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SOME PARTIES TO MOVE SUPREME COURT AGAINST USE OF EVMS: CHANDRABABU NAIDU

Some political parties have decided to approach the Supreme Court against the use of electronic voting machine (EVM), Andhra Pradesh Chief Minister N.Chandrababu Naidu said. In his daily teleconference with Telugu Desam Party (TDP) leaders, Mr. Naidu said this decision was taken during a meeting of 15 parties at Sharad Pawar’s residence in New Delhi on February 13 night. The TDP has been demanding that EVMs should not be used in the coming general election and that the Election Commission of India revert to the paper ballots. Sunil Arora, who was in Amaravati recently, maintained that most parties reposed faith in EVMs, and regretted that some were making the EVMs part of their motivated slugfest. Democracy will be in danger in the hands of incompetent people. Our talks with national parties have been successful, the release quoted the TDP chief as saying.
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MONEY LAUNDERING CASE: DEEPAK TALWAR SENT TO 14-DAY JUDICIAL CUSTODY

A Delhi court Thursday sent corporate lobbyist Deepak Talwar, arrested in money laundering case to 14-day judicial custody. Special Judge Santosh Snehi Mann sent Talwar to the judicial custody after the Enforcement Directorate (ED) said that it does not need him for further interrogation in its custody. The court has posted the matter for next hearing on Feburary 28.
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CBI SWORD HANGING, KOLKATA POLICE COMMISSIONER RAJEEV KUMAR LIKELY TO BE REMOVED BY FEB 20

Kolkata Police Commissioner Rajeev Kumar who returned to the city last night after being grilled by officials of Central Bureau of Investigation (CBI) for 36 hours, over five days, is likely to be transferred before February 20 when the next hearing of CBI’s contempt of court case is due at the Supreme Court.;Sources said that the transfer was almost certain following an order issued by the Election Commission of India (ECI) on January 16. The order said that any officer who has been engaged in the election process would have to be transferred. It also said that officers who would complete three years of office at any particular place as on May 31, 2019, would have to be transferred as well. Earlier the deadline of carrying out the order was February 28 but officials said that the deadline has been brought to February 20. Although some names are doing the rounds it has not yet been settled as to who would replace Kumar as the Kolkata Police chief.
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CAG HAS ALLOWED ITSELF TO BECOME A JOKE: CHIDAMBARAM ON RAFALE REPORT

Calling the Comptroller and Auditor General’s report on the Rafale deal useless, P Chidambaram on Thursday said the institution had allowed itself to become a joke The CAG allowed itself to become a joke and an honourable government in future will restore the prestige and credibility of the institution he said.;The Congress leader added, If you thought those 33 pages will bring to light the hidden aspects of the deal and explain matters relating to numbers, pricing, delivery etcetera and comment on correctness and propriety of a transaction, you will be disappointed. The former Union minister also claimed that the report which was tabled in Parliament on Wednesday contained no useful information or conclusion. Its motive is to hide the truth, he said. Stating that CAG is not God, Chidambaram rejected the Centre’s contention that the report should be the final word on the contentious deal. He reiterated his party’s demand for a joint parliamentary panel probe, saying only it can call for all relevant records.
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IF BJP WANTS SUPPORT AT CENTRE NDA PARTNERS MUST GET CM POST: SHIV SENA

Shiv Sena on Thursday said that allies should get the Chief Ministerial post in their respective states if a BJP-led NDA government is formed at the Centre after the upcoming Lok Sabha elections. Sanjay Raut, however, said there is no change in the stand of Shiv Sena on fighting the Lok Sabha polls alone and that talk of an alliance with BJP is only media speculation. Raut told, If an NDA government is formed in 2019, Shiv Sena, Akali Dal, and other major allies will have a role. All the allies of NDA are strong in their states and if you (BJP) want to have an alliance with them at the Centre, the Chief Minister in that state should be from that ally. Asked if their condition for forging an alliance with BJP is mandatory, he said, This is not a condition but this is our stand. We have already said that the next Chief Minister in Maharashtra will be from Shiv Sena and this has nothing to do with an alliance. If in future, there are discussions on an alliance we will want an implementation of the 1995 formula as per which Shiv Sena will have the role of a big brother in Maharashtra whereas we will reciprocate similar support to BJP at the Centre, he added.
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GODHRA TRAIN ATTACK: GUJARAT GOVT DECIDES TO COMPENSATE KIN OF DECEASED

Ahead of the 17th anniversary of the Godhra train carnage, Gujarat government has decided to pay Rs 5 lakh to each of the 52 victims who were killed when Sabarmati Express was set on fire at Godhra in 2002. Announcing the decision, the state home minister Pradeepsinh Jadeja said in a statement that the Rupani government will be spending Rs 260 lakh for this purpose from the Chief Minister’s Relief Fund. Jadeja pointed out that the Gujarat High Court on October 9, 2017 had directed both the Gujarat government and the Railway ministry to pay Rs 5 lakh each to the kin of those who were killed on board on February 27, 2002. The deaths, mostly of kar sevaks who were returning from Ayodhya, had sparked state-wide communal riots in the state in 2002 where over 1000 persons were killed.
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PULWAMA ATTACK: INDIA’S AZHAR STAND AT UN MAY NOW CHANGE

Describing the Pulwama terror attack as heinous and despicable, India used strong words to ask Pakistan to stop supporting terrorists and called upon all other countries to place Masood Azhar in the UN Security Council’s counter-terrorism sanctions list. China has consistently stopped Azhar from being banned, as part of its relationship with Pakistan. Every time Azhar has been proposed for a ban in the UN Security Council’s 1267 Committee, China has blocked it. In its statement, MEA said, the terror attack was perpetrated by Jaish-e-Mohammed, a Pakistan-based and supported terrorist organisation proscribed by the United Nations and other countries. This terror group is led by the international terrorist Masood Azhar, who has been given full freedom by the government of Pakistan to operate and expand his terror infrastructure in the territories under the control of Pakistan and to carry out attacks in India and elsewhere with impunity. Calling for international support against Azhar, India said we reiterate our appeal to all members of the international community to support the proposal to list terrorists including JeM chief Masood Azhar, as a designated terrorist under the 1267 Sanctions Committee of the UN Security Council and to ban terrorist organisations operating from territories controlled by Pakistan. But in all of 2018, India did not push the Azhar case in the UN at all. After the Wuhan summit between Narendra Modi and Xi Jinping, India has been treading on eggshells where China is concerned, going the extra distance to not disturb the fragile peace with China.
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RAFALE REVIEW: CJI DEFENDS SC, CRITICISES LAWYERS FOR GIVING PUBLICITY

Chief Justice Ranjan Gogoi defended the Supreme Court against flak it is facing over the pending review in the Rafale case. Gogoi criticised the lawyers in the case and highlighted that the review application was filed with defects and while it was lying with the registry, no effort had been made to remove those defects The chief justice’s comments on the Rafale review were delivered on an unrelated case. Yashwant Sinha and Arun Shourie and lawyer Prashant Bhushan had moved the Supreme Court in January seeking a review of its judgment that upheld the government’s decision-making process in purchasing Rafale fighter aircraft. The petition said the 14 December judgment relied on facts that were patently false and should, therefore, be recalled. It also criticized the top court’s reliance on documents placed by the Centre in a sealed cover and a report of the Comptroller and Auditor General (CAG) on the pricing issue in delivering its verdict, even though the audit is still to be completed. Deeming it to be a substantial error on part of the court, the petition stated: The government has blatantly misled the hon’ble court which has grossly erred in placing reliance on false averments in the note not even supported by an affidavit. As the judgment is based on evidently false averments in the note not shared with the petitioners, on that ground alone the entire judgment ought to be not just reviewed but recalled. The Centre’s submission had recorded that under paragraph 25 of the judgment, it had stated that pricing details were shared with the CAG and that the report was examined by the Public Accounts Committee (PAC). Only a redacted portion of the report was placed before Parliament, the judgment added. This had come under question as there was no CAG report on it until then.
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JOB CREATION, TECHNOLOGY TRANSFER, INVESTMENTS DOMINATE INDIA-US TALKS

India and the United States focused on job creation, technology transfer and greater bilateral investments at the India-US Commercial Dialogue, held on Thursday. Both nations decided to expand the number of working groups of chief executives with top US and Indian firms — from four to seven — with a new focus on financial trade and investments as well as small and medium enterprises (SMEs). However, with the absence of US Commerce Secretary Wilbur Ross, there was no joint statement, as the sides simply resolved to further expand and strengthen trade and commerce ties. Working groups have been formed among the CEOs. They will be providing recommendations to the government, Kenneth Juster, US ambassador to India, said. He added that these groups would continue to work with both governments.
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PUTIN WRITES TO MODI; WHITE HOUSE ASKS PAKISTAN TO SHUT DOWN TERROR HAVENS

USA and Russia for the second consecutive day have asked perpetrators of Pulwama terror attack to be brought to justice with President Vladimir Putin asking for action against attackers and White House demanding that Pakistan dismantles terror infrastructure Putin sent his condolences to President Ram Nath Kovind and Prime Minister Narendra Modi in connection with the killing of Indian security force personnel in a terrorist attack in Jammu and Kashmir. Please accept my most sincere condolences for the Indian security force personnel killed in a terrorist attack in Jammu and Kashmir. We strongly condemn this cruel crime. Those who ordered it and carried it out must undoubtedly be duly punished. I would like to reaffirm our readiness to further promote antiterrorist cooperation with our Indian partners, Putin wrote in his letter offering to strengthen counter-terror partnership. The Russian people mourn together with the friendly people of India and hope for the speedy recovery of all the injured. The White House alleged attack was carried out by a Pak-based group and demanded that Islamabad dismantles terror safe havens. The USA sought to expand counter-terror cooperation with India. Indias close ally in SE Asia Indonesia has also condemned the terror attack in Pulwama. The Government and people of Indonesia express our deepest condolences and solidarity to the victims of the terror attack and their families, the Indonesian Foreign Ministry noted in a statement. Indonesia reiterates that acts of terrorism are criminal and unjustifiable, regardless of their motivation. Indonesia will continue to work with the international community to fight against terrorism, extremism and radicalism as well as address its root causes. Indias close ally in the Gulf UAE has condemned the terrorist attack on security forces in Kashmir. The Ministry of Foreign Affairs and International Cooperation said in a statement that the UAE condemns this terrorist act, reiterating the country's principled and unequivocal position rejecting all forms of violence and terrorism.
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INTERNATIONAL COURT OF JUSTICE TO RESUME HEARING IN KULBHUSHAN JADHAV CASE FROM FEBRUARY 18

The oral proceedings in the Kulbhushan Jadhav case will commence from February 18 before the International Court of Justice at The Hague, the Ministry of External Affairs said Thursday. Jadhav, 48, was sentenced to death by a Pakistani military court on charges of espionage and terrorism in April 2017. India moved the International Court of Justice (ICJ) in May the same year against the verdict. A 10-member bench of the ICJ on May 18, 2017, had restrained Pakistan from executing Jadhav till adjudication of the case. Ministry of External Affairs Spokesperson Raveesh Kumar declined to go into the details of it. The oral proceedings on the International Court of Justice are commencing on February 18. India will present its case before the court. Since the matter is subjudice it is not appropriate for me to state our position in public.Whatever we have to do, we will do at the court, he said in response to a question. Pakistan claims that its security forces arrested Jadhav from restive Balochistan province on March 3, 2016 after he reportedly entered from Iran. However, India maintains that Jadhav was kidnapped from Iran where he had business interests after retiring from the Navy. Jadhav's sentencing had evoked a sharp reaction in India.
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'93 MUMBAI SERIAL BLASTS SUSPECT HELD IN UAE, MAY BE DEPORTED SOON

A 51-year-old fugitive wanted for plotting and helping transport the explosives used in the 1993 serial bomb blasts in Mumbai was detained in the UAE on Wednesday on inputs provided by Indian security agencies, and is likely to be deported soon. Abu Bakar Abdul Gafoor, a central Mumbai resident, is alleged to have undergone training with several others on explosives and in assembling firearms in a camp in Pakistan-occupied Kashimir (PoK) before the blasts. He was never arrested in the bomb blast case, said a source. Sources said Abu Bakar's name cropped up during the probe and in the statements of other accused, prompting the CBI to issue a red corner notice in November 1997. The Interpol notice alerts security agencies across the world about an accused and enjoins them to arrest the person. There is no clarity on how he was detained by the UAE police. The blasts probe had found that Abu Bakar participated in several conspiracy meetings before the March 12, 1993 serial explosions. The meetings were conducted at various places, and prime accused Dawood Ibrahim attended several such meetings.
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FACEBOOK FACES US PRIVACY PACT THAT COULD COST BILLIONS

Facebook Inc. is in talks with US regulators over alleged privacy violations that could force the social-media giant to pay billions of dollars in a record-breaking settlement, according to two people familiar with the matter. The US Federal Trade Commission’s consumer-protection staff and the company are in discussions that could lead to a resolution of the agency’s investigation into whether Facebook violated a 2011 settlement with the FTC, said the people, who declined to be identified because the matter is confidential. No settlement proposal has been presented to the agency’s five commissioners, according to one of the people. The commissioners have the final say over any agreement reached with Facebook. It was unclear whether the two sides have discussed details of how much Facebook would have to pay to resolve the case. The Washington Post reported earlier that they are in discussions about a multi-billion-dollar fine.
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MODI’S SWACHH BHARAT MISSION AN INSPIRING MODEL, SAYS NIGERIAN MINISTER

While India looks forward to becoming an open-defecation free country in 2019, its African counterpart in terms of open-defecation– Nigeria– will become the world leader of the menace once India reaches her target. Minister of Water Resources, Federal Republic of Nigeria– Suleiman H Adamu– said that the country is challenged by India’s on-going Swachh Bharat Mission (SBM) and its success has spurred Nigeria. Now, Nigeria is set to remodel its Open Defecation Free (ODF) campaign based on India’s SBM model. Officials from Nigeria will soon be studying their Indian colleagues to better understand how Swachh Bharat Mission can be adapted to the Nigerian context, the minister wrote. He added that the country hopes to exemplify their success for other African countries by following the Indian example. Lauding SBM, the minister said that the mission is a testimony to the world community as it has shown that with strong political will, appropriate strategies, mobilisation of the populace, and adequate deployment of resources, Sustainable Development Goals are achievable. He also said that as SBM has led to a drastic cut in the population practising open defecation in India, Plans were already being made for a Nigeria mission to India when I received an invitation to the Mahatma Gandhi International Sanitation Conference (MGISC), in October 2018, he added. However, with the introduction of Swachh Bharat Mission, the problem has been curbed to a considerable extent.
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3 INDIAN-AMERICANS CONVICTED IN MULTI-MILLION DOLLAR MONEY LAUNDERING SCHEME

Three Indian-Americans are among six people convicted for their role in a two-year multi-million dollar money-laundering scheme, the US Justice Department has said. Ravinder Reddy Gudipati, 61; Harsh Jaggi, 54 and Neeru Jaggi, 51, all from Laredo, Texas, were convicted of a money laundering conspiracy following a five-week jury trial. According to evidence presented in court, from 2011 to 2013, Galvan-Constantini, Montes-Patino and other co-conspirators helped to move millions of dollars derived from the sale of drugs throughout the US to Laredo in Texas.
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TARIFF WAR: US, CHINA BEGIN HIGH-LEVEL TRADE TALKS AS MAR 1 DEADLINE LOOMS

US and Chinese negotiators on Thursday kicked off two days of high-level talks that President Donald Trump says could decide whether he escalates the bruising tariff battle between the world's two biggest economies. Trump indicated this week he was open to extending a trade truce beyond March 1 depending on progress in Beijing. He is considering pushing the deadline back an additional 60 days Data released Thursday in China showed its trade surplus with the US -- a major source of anger within the Trump administration -- narrowed in January to $27.3 billion, even as its American imports plunged 41 percent for the month from a year earlier.
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PROTECTIONISM WON'T DO: INDIA SHOULD CALL A TRUCE IN US TRADE CONFLICT

US and Indian officials are meeting in New Delhi (Monday) for what promises to be a tetchy summit. The trade relationship between their countries has never been easy. The fact that India has a $22-billion trade surplus with the US —despite running a deficit with many of its other major trading partners—is particularly annoying to the Trump administration. The total might seem insignificant compared to America’s $566 billion trade deficit with China. For its own sake, though, India would be wise to address rather than try to minimise U.S. complaints. That’s not only because the US seems to be preparing heavy-duty retaliation. It might remove Indian exports from the General System of Preferences tariff plan, which ensures that about 2,000 different kinds of goods--product lines, as the trade negotiators call them -- can be imported into the U.S. without any tariffs being levied. Washington seems serious: In November, 50 Indian product lines were removed from the GSP. Normally, Indian negotiators would point out that Indo-U.S. trade isn’t particularly unbalanced, that we’re still a developing country and should get a few concessions, and that we’re all in this together against China, aren’t we? That argument rings increasingly hollow, however. It isn’t just Trump’s fixation on Harley-Davidson motorcycles: He famously complained that Harleys imported into India were subject to a 50 percent tariff, even after Indian Prime Minister Narendra Modi called the U.S. president personally to tell him tariffs were being cut. They think they’re doing us a favor, Trump fumed. That’s not a favor. More genuine is concern about India’s growing protectionism. Indian tariffs on solar panels (ironically, meant to control Chinese imports) prompted a U.S. complaint at the World Trade Organization. Then, an Indian attempt to fix the price of stents caused the U.S. medical equipment industry to rise up in protest. Now, India has chosen to wage battle against U.S. companies on a completely new front: data localisation. The Reserve Bank of India told all payments companies to store the entire data related to payments systems solely in India. The government followed up with two separate draft policies, one of which ordered e-commerce companies to store user data in India and one which tells all internet companies to store personal data of Indians in India. The latter policy doesn’t even pretend to be anything other than an attempt to make it easier for Indian companies to do business at the expense of foreign ones. And, incidentally, it’s terrible news for any Indian who doesn’t want all her data made available to an unaccountable and intrusive national security bureaucracy. E-commerce has also been a major flashpoint. The government is going after foreign-owned e-commerce web sites such as Amazon, telling them that they can’t hold any inventory or allow their platform to be used by companies they’d invested in. In other words, Amazon needs to find a middleman to sell Kindles or Echos on its Indian website. Local companies face no such restrictions.
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EUROPEAN UNION ADDS SAUDI ARABIA TO DIRTY-MONEY BLACKLIST, UPSETS BRITAIN

The European Commission added Saudi Arabia, Panama, Nigeria, and other jurisdictions to a blacklist of nations seen as posing a threat because of lax controls on terrorism financing and money laundering, the EU executive said on Wednesday. The move is part of a crackdown on money laundering after several scandals at EU banks but has been criticized by several EU countries including Britain worried about their economic relations with the listed states, notably Saudi Arabia. The Saudi government said it regretted the decision in a statement published by the Saudi Press Agency, adding: Saudi Arabia's commitment to combating money laundering and the financing of terrorism is a strategic priority. Panama said it should be removed from the list because it recently adopted stronger rules against money laundering. Despite pressure to exclude Riyadh from the list, the commission decided to list the kingdom. Apart from reputational damage, inclusion on the list complicates financial relations with the EU. The bloc's banks will have to carry out additional checks on payments involving entities from listed jurisdictions. The list now includes 23 jurisdictions, up from 16. The commission said it added jurisdictions with strategic deficiencies in their anti-money laundering and countering terrorist financing regimes. The 28 EU member states now have one month, which can be extended to two, to endorse the list. They could reject it by qualified majority. EU justice commissioner Vera Jourova, who proposed the list, told that she was confident states would not block it. She said it was urgent to act because risks spread like wildfire in the banking sector. Britain, which plans to leave the EU on March 29, said on Wednesday the list could confuse businesses because it diverges from a smaller listing compiled by its Financial Action Task Force (FATF), which is the global standard-setter for anti-money laundering. The FATF list includes 12 jurisdictions - all on the EU blacklist - but excludes Saudi Arabia, Panama and U.S. territories. The FATF will update its list next week. Five of the listed countries are already included on a separate EU blacklist of tax havens. They are Samoa, Trinidad and Tobago and the three U.S. territories of American Samoa, Guam, and U.S. Virgin Islands.




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Thanks & Regards,
CS Meetesh Shiroya    

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