Thursday 7 March 2019

TAXATION UPDATES 07.03.2019





EASE OF DOING BUSINESS VIA TAX REFORMS TO CONTINUE: ARUN JAITLEY

Direct and indirect tax reforms will continue to facilitate and expedite the process of ease of doing business in India, finance minister Arun Jaitley said. He asked the Indian industry to comply with the recent recommendations of the GST Council with regard to reduction of rates of various items and pass on the benefits to consumers, the finance ministry said in a statement. He said GST is now on track and fast settling down. The thrust of the government is to lower the tax rate, increase the tax base and keep revenue collections moving up.
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GOVERNMENT EXPLORES FRAMEWORK TO ENSURE GST RATE CUT BENEFITS CONSUMERS

The Finance Ministry may explore a clearly-defined broad framework to ensure that cuts in GST rates benefit consumers The fresh initiative is being considered in the wake of rising number of complaints against companies that are found tweaking rules to avoid lowering retail prices At present there is no prescribed method under the GST law to deal with the issue. Absence of compliance regulations prevents corporates from immediately passing on the benefits on the price front. The new framework within the GST law is on the anvil but a final call would be taken in consultation with the stakeholders, said official sources. If the ministry indeed decided to go for the changes, the new framework may stipulate timelines within which the GST rate cut benefits would have to reach consumers. Moreover, companies may be barred from making changes in product packaging and weight to escape price cuts. It has been observed that companies often increase the weight of their products where goods and services tax (GST) rate was reduced rather than enforcing a price cut by proportionate percentage, the sources added. With regard to the timelines for passing on the benefits to consumers, the Ministry would have to look at issues with regard to stock in trade, said the sources. Although there is an anti-profiteering authority (NAA) to ensure GST rate cut benefits reaches the common man several of its decisions to impose penalty on erring corporates have been legally challenged. Corporates have often cited absence of guidelines to put up a challenge. This results in cases being dragged for long periods while consumers suffer. Also, there was an absence of any prescribed method in the GST law to calculate the undue profit earned. The amount has to be returned to customers. Where this is not feasible, it has to be deposited into the customer welfare funds.
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GUJARAT: REFUND, REGISTRATION ISSUES DOMINATE GST OPEN HOUSE

There are no orders to stop refunds under Goods and Services Tax (GST), officials of Central GST (CGST) and State GST (SGST) said on Tuesday at an Open House. Tax practitioners raised issues of the late issue of refunds, registration and those with GST Network (GSTN) during the interaction. There are no orders to stop refunds (as the financial year is coming to an end). We are disposing requests of refunds at the earliest. We will take no more than a week to clear the refunds, Ajay Jain. Officials replied to the volley of complaints by tax practitioners saying that certain officials have told them that as the financial year is coming to an end, there are work pressures and so the activity of issuing refunds has been derailed. Moreover, refunds are not issued to maintain revenue numbers, an argument Jain outrightly rejected. Sequence of GST refunds has been revised from February 1 onwards, but GSTN has not been upgraded and so departments should not issue notices later on for the fault of the system. Tax practitioners urged SGST authorities to release refunds on the lines of CGST, even though purchases may not be reflected in GSTR-2A, filed by the seller, but the buyer has bills and other legal proofs to claim a refund.
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GOVT HAS ADDRESSED MSMES’ LACK OF CREDIT AVAILABILITY

The Micro, Small and Medium Enterprises (MSME) sector in India has emerged from being the cradle of entrepreneurship, innovation and dynamism to becoming a symbol of social transformation The sector is the backbone of the Indian economy. It thus becomes imperative to recognise its contribution to national growth and provide the necessary impetus to enhance its capability and provide a platform from which global enterprises can emerge. The MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy, contributing around 8 to 10 per cent of the GDP and employing around 11 crore people, directly and indirectly. Over 50 per cent of MSMEs in India are rural enterprises widely distributed across low-income states, making them an important sector for promoting inclusive economic growth. In comparison, in developed economies like Germany, France, UK and US, MSMEs contribute almost 50 percent to the GDP. Indian MSMEs have the potential to achieve the same. The two major issues faced by Indian MSMEs are the lack of availability of adequate and timely credit and the high cost of credit. In India, banks charge about 9 and 16 per cent, while non-banking financing companies (NBFC) take up to 24 per cent. The high cost of funding, which ranges from 9-24 per cent depending on their funding facility and risk, hurts their competitiveness. In comparison, across Europe, the interest rates are as low as 2-2.5 per cent. To facilitate liquidity and smoother transactions to the MSME sector, the central government on its part has taken a lot of initiatives. It has increased the mandated procurement for public sector companies from MSMEs. In addition, the government has announced Rs 6,000 crore financial package to facilitate better technological support and tools to small industries. The fund will be used in over 20 MSME hubs and 100 tool-rooms for technology upgradation. The notification has also directed the companies to report in their half-yearly statement, cases where payments have been delayed by more than 45 days This move is expected to exhort both corporate companies and PSUs to make on-time payment to MSMEs. Another scheme with 59-minute loan facility of up to Rs 1 crore for small and medium entrepreneurs has emerged as the country’s largest online lending platform, with loan sanctions exceeding over Rs 35,000 crore. Since the launch, over 1.6 lakh MSME units were given in-principle approvals, while over 1 lakh got the final nod as on February 27. Out of this, about 36,000 units got new loans worth about Rs 10,000 crore, while around 77,000 units received renewal loans of Rs 26,000 crore. This ecosystem could bring about a socio-economic transformation, based on immense possibilities of job-creation, indigenisation, possibly even import substitution. The sector needs to be unleashed with the right mix of policy support and encouragement.
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FIRST TIME IN CAG HISTORY, IT GAVE REDACTED PRICING DETAIL IN RAFALE JET DEAL, BHUSHAN TELLS SC

It is for the first time in CAG's history that it has given redacted pricing to Parliament in the Rafale fighter jet deal, former Union Ministers Yashwant Sinha, Arun Shourie and activist lawyer Prashant Bhushan told the Supreme Court on Wednesday. The government itself has disclosed the price of the Rafale deal thrice in Parliament, Bhushan told a bench of Chief Justice Ranjan Gogoi and Justices S K Kaul and K M Joseph. The government itself disclosed thrice in the Parliament the price of Rafale fighter jet deal. They even gave price of up-gradation of Mirage fighter aircraft. This is the first time in the history of Comptroller and Auditor General (CAG) that redacted pricing of fighter jet deal were given. This is astonishing. This was done on the insistence of government, said Bhushan arguing on behalf of Sinha and Shourie as also himself. He said the government knew before hand that CAG report will contain redacted pricing of Rafale fighter jets. This is contrary to the CAG Act. They cannot table redacted pricing details before the Parliament and the Public Accounts Committee (PAC). This is the first time it has been done and the government knew about it, Bhushan added. After Bhushan, the bench gave opportunity to Shourie to make submission and he said there was need for reviewing the judgement as the Centre did not come up with clean hands and suppressed the material facts. The Centre told the bench that the documents related to the Rafale fighter jet deal have been stolen from the Defence Ministry and threatened The Hindu newspaper with the Official Secrets Act for publishing articles based on them. Those who put documents on the Rafale deal in the public domain are guilty under the Act as also contempt of court, Attorney General K K Venugopal said. While publishing articles based on stolen documents amounts to violation of the Official Secrets Act, entailing maximum punishment of up to 14 years, the contempt law attracts six months jail as also a fine of Rs 2,000. Sinha, Shourie and Bhushan, who had jointly filed the petition seeking review of the verdict on December 14 last year, alleged that the Centre suppressed crucial facts when the apex court decided to dismiss the batch of PILs. The bench, which will hear the review petitions further on March 14, was told by Venugopal that every statement of the apex court made in the Rafale case may be used to destabilise either the government or the opposition and therefore court should refrain from making it. The high voltage hearing saw the bench showering several tricky questions to the AG who was buttressing that the stolen materials cannot be relied to revisit the judgement dismissing the pleas and it was necessary to determine the sources who provided the sensitive documents.
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ELIGIBILITY OF EXPORTS FROM SEZ/EOU UNITS ON BEHALF OF DTA UNITS UNDER MEIS-CLARIFICATION

This Directorate has received references from exporters seeking clarification on eligibility of Exports made from SEZ/EOU units on behalf of DTA units under the Merchandise Exports from India Scheme (MEIS) in the context of the Para 3.06 – ineligible categories of MEIS , sub para (v), which states that SEZ/ EOU /EHTP/ BTP /FTWZ products exported through DTA units are ineligible for MEIS rewards. The matter has been examined in this It is clarified that the exports which are made/have been made directly from a EOU/ SEZ unit to Foreign consumer in which export documents are prepared and filed at the customs office of concerned SEZ/EOU Unit, mentioning the name of the EOU/SEZ unit along with the name of the DTA unit on whose behalf the exports is made, would be eligible for MEIS benefits subject to condition that only one of the said units i.e. either EOU/SEZ unit or the DTA unit can claim the benefits under MEIS. It is further clarified that the eligibility as above, is applicable to only those cases where goods are produced by the EOU/SEZ unit and are exported directly to the foreign consumer, with the name of the DTA. It is further clarified that the MEIS benefits may be taken by the SEZ/ EOU or DTA and not both, on the basis of disclaimer from the other firm, subject to fulfillment of each of the criterion as below for every shipping bill for which claim is made under MIES.

(i) The Commercial Invoice shows the name of the DTA exporter and shows the name of the SEZ/EOU unit as the manufacturer.
(ii) The declaration of intent to avail MEIS benefits has been specified in the Commercial Invoice.
(iii) The related GST Invoice/ARE-1 has been filed by the DTA firm and shows the name of the SEZ/ EOU unit as manufacturer and it has been signed by both the DTA and SEZ/EOU unit as the case may be.
(iv) The relevant Shipping bill shows the name of the exporter and shows the details as Factory sealed with the address and name of the EOU/SEZ
(v) The scheme details in the related shipping bill are shown as EOU/EPZ/SEZ/EHTP/STP (with Scheme Code as 21-EOU/EPZ/SEZ/EHTP /STP).
(vi) Third party details in the related Shipping bill should show DTA.
(vii) The e-BRC is in the name of the DTA firm.
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ABBOTT FINED RS 96 LAKH FOR PROFITEERING FROM GST

The anti-profiteering body has held that US pharmaceutical company Abbott Healthcare did not pass on the benefits of the goods and services tax to customers after the new regime started in July 2017 and the rate was further reduced in November that year. Abbott had instead increased the price of a cream after GST became effective, the National Anti-profiteering Authority (NAA) said in an order on its website on Tuesday, fining the company and a pharmacy 96.59 lakh for profiteering from GST. Although the order pertains to only one product, the NAA will now investigate all products sold by Abbott, as per the order. DGAP (Director General of Anti-Profiteering) is directed to further investigate the quantum of profiteering on all the products including the present product which respondent (Abbott) is supplying, NAA said in the order.
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FIRST TIME IN CAG HISTORY, IT GAVE REDACTED PRICING DETAIL IN RAFALE JET DEAL, BHUSHAN TELLS SC

It is for the first time in CAG's history that it has given redacted pricing to Parliament in the Rafale fighter jet deal, former Union Ministers Yashwant Sinha, Arun Shourie and activist lawyer Prashant Bhushan told the Supreme Court on Wednesday. The government itself has disclosed the price of the Rafale deal thrice in Parliament, Bhushan told a bench of Chief Justice Ranjan Gogoi and Justices S K Kaul and K M Joseph. The government itself disclosed thrice in the Parliament the price of Rafale fighter jet deal. They even gave price of up-gradation of Mirage fighter aircraft. This is the first time in the history of Comptroller and Auditor General (CAG) that redacted pricing of fighter jet deal were given. This is astonishing. This was done on the insistence of government, said Bhushan arguing on behalf of Sinha and Shourie as also himself. He said the government knew before hand that CAG report will contain redacted pricing of Rafale fighter jets. This is contrary to the CAG Act They cannot table redacted pricing details before the Parliament and the Public Accounts Committee (PAC). This is the first time it has been done and the government knew about it, Bhushan added. After Bhushan, the bench gave opportunity to Shourie to make submission and he said there was need for reviewing the judgement as the Centre did not come up with clean hands and suppressed the material facts. The Centre told the bench that the documents related to the Rafale fighter jet deal have been stolen from the Defence Ministry and threatened The Hindu newspaper with the Official Secrets Act for publishing articles based on them. Those who put documents on the Rafale deal in the public domain are guilty under the Act as also contempt of court, Attorney General K K Venugopal said. While publishing articles based on stolen documents amounts to violation of the Official Secrets Act, entailing maximum punishment of up to 14 years, the contempt law attracts six months jail as also a fine of Rs 2,000. The bench, which will hear the review petitions further on March 14, was told by Venugopal that every statement of the apex court made in the Rafale case may be used to destabilise either the government or the opposition and therefore court should refrain from making it.
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RS 389 CRORE LOANS AT CENTRE OF ED’S PROBE OF KOCHHARS

Loans amounting to Rs 389 crore to Deepak Kochhar’s NuPower Renewables Ltd (NRL) from VN Dhoot’s Videocon Group and Nishant Kanodia’s Firstland Holdings, received as alleged kickbacks in lieu of loan sanctioned by ICICI Bank when Chanda Kochhar was at the helm of ICICI, are at the centre of the Enforcement Directorate’s probe, sources in the know told. The central agency has zeroed in on two instances of alleged quid-pro-quo. The first pertain to transactions between Videocon and NRL. According to sources, a day after a term loan of Rs 300 crore was sanctioned by ICICI Bank, Rs 64 crore was transferred by Dhoot to NRL through his company Supreme Energy Pvt Ltd (SEPL). The second is a similar transaction between NRL and Kanodia’s Firstland Holdings. According to sources, the Essar Group had invested Rs 163 crore in Firstland, which in turn invested Rs 324.37 crore in NuPower between December 2010 and March 2012. Separately, in August 2015, Essar Projects India invested another Rs 250 crore in the cumulative redeemable preference shares of Matix. Kanodia is the son-in-law of Essar Group vice-chairman Ravi Ruia. These two instances are clear cut cases of kickbacks received for the loan sanctioned to group companies. On September 7, 2009 RTL (rupee term loan) of Rs 300 crore was transferred to Videocon International Electronics Ltd (VIEL) and the very next day, Dhoot transferred Rs 64 crore to NRL, managed by Deepak Kochhar. As also in the case of Firstland Holdings, these loans were then laundered and brought back into the system through a maze of complex web of transactions. Our probe is now concentrating on the trail and how it was ultimately used by the Kochhar couple to purchase personal assets, said the source cited above. The CBI case probing a case of criminal conspiracy and misuse of office against the Kochhars also mentions the transfer of Rs 64 lakh as íllegal gratification.’
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NO CEASEFIRE VIOLATION ALONG LOC IN 20 HRS; SITHARAMAN CANCELS JAMMU VISIT

An uneasy calm prevailed along the Line of Control (LoC) in the twin districts of Poonch and Rajouri in Jammu and Kashmir with no report of ceasefire violation by Pakistan over the past 20 hours, officials said on Thursday. Meanwhile, Defence Minister Nirmala Sitharaman called off her scheduled visit to Jammu province on Thursday to review the situation along the borders in the wake of intense shelling over the past nine days besides inaugurating two vital bridges in Samba and Akhnoor sectors, they said. A defence spokesman said there was no report of ceasefire violation by Pakistan anywhere along the LoC in Jammu province, especially in the worst-hit Rajouri and Poonch districts since Wednesday afternoon. The Army remains on high alert all along the LoC and the International Border and is keeping a close watch on the situation, the spokesman said.
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PROBE EVERYBODY INCLUDING PM MODI IN RAFALE DEAL: RAHUL GANDHI

Accusing the government of manipulating institutions to save Prime Minister Narendra Modi in the Rafale deal, Rahul Gandhi Thursday said it has spoken of investigating the media over the theft of Rafale documents but has not probed those involved in the scam of over Rs 30,000 crore. Investigate everyone but probe Modi as well, Gandhi told a press conference, accusing the prime minister of performing a bypass surgery in the purchase of the fighter aircraft for corruption, including benefiting businessman Anil Ambani. In defence ministry files, it is written that the Prime Minister's Office carried out parallel negotiations in the fighter jet deal, then why can't the PM be investigated, he asked. The government has constantly rejected the allegations levelled by the Congress with the BJP accusing Gandhi of spreading lies to torpedo the Rafale deal due to his vested interests. Ambani has also rejected corruption allegations.
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RAHUL TO BRING FARM DISTRESS IN SPOTLIGHT AT MOGA RALLY

Rahul Gandhi is likely to tone-down the overriding political narrative from patriotic overtones to another emotive issue of farm distress in a rally at Moga on Thursday by launching debt waiver scheme for landless labour and families of those who committed suicide. While it will bring back spotlight on the farm distress, a more conducive poll plank for Congress, it works well for the party in Punjab where the chief minister Amarinder Singh government is implementing debt waiver of over Rs 7,000 crore. Punjab, was planned to dwell on theme ‘Jai Jawan Jai Hindustan’ to commemorate security personal killed in Pulwama attack but after directions from top leadership the occasion will now highlight measures taken to address farm distress by the Congress ruled state. While Punjab is not new to the tension between India-Pakistan, the changed narrative allows the Congress to sell its pre-poll plank of debt waiver in other states. Rahul Gandhi had promised to extend debt waiver to landless farmers and dalits ahead of assembly polls in three states. Punjab is first Congress state to have waived loans of farmers and of landless farmers, Harjot Kamal, Congress MLA from Moga said. Rahul Gandhi is likely to launch the scheme for landless labourers and families of farmers who committed suicides and debt waiver certificates will be issued to a few beneficiaries. The highlight on poll plank of farm distress works the party in Punjab where loans worth over Rs 4,736 crore have been waived and additional Rs 3000 crore in state budget were allocated to cover landless labour and families of farmers who committed suicide.
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INDIA UNLIKELY TO MOVE WTO AS US SCRAPS SPECIAL TARIFFS

India may not drag the US to the World Trade Organization (WTO) for ending preferential benefits to its exports, but trade experts say India must raise the issue as the entire review was discriminatory Though the benefits under the Generalised System of Preferences (GSP) are supposed to be non-discriminatory and nonreciprocal, the government is unlikely to challenge the US’ move as Washington has withdrawn them on the basis of India not providing equitable and reasonable access to its markets in numerous sectors. The US has not said that it is ending the benefits on the basis of non-reciprocity. It has talked about equitable market access, said one official aware of the details.
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INDIA NEEDS MORE GLOBALIZATION TO BOOST WAGES: WORLD BANK-ILO REPORT

India needs to ramp up exports if workers are to enjoy higher wages according to a new report. While the link between exports and economic growth is widely accepted. They estimate that raising the value of India’s exports by $100 per worker would increase average annual wages by 572 rupees ($8) per person. Nearly 10 million Indians enter the workforce every year in a country where almost 60 percent of the population live below a poverty line of $3.2 a day. Our results show the positive side of globalization in South Asia, which stems from higher exports. Rising wages and a shift from informal to formal employment are exactly the kinds of benefits governments hoped for when they opened up their economies to international trade. Workers who are educated, urban and male tend to benefit more from the export gain, according to the study. While India’s economy has grown at a robust pace of about 7 percent in the past few years, it’s become less reliant on trade over the years. The World Bank estimates that trade as a percentage of gross domestic product dropped to 41 percent in 2017 from 55.8 percent in 2012. India’s share of world exports is 1.7 percent, while it buys 2.5 percent of global imports, according to the World Trade Organization. About 800,000 jobs moved from the informal economy to the formal sector between 1999 and 2011 because of export growth, representing 0.8 percent of the labor force, the World Bank study shows. Greater exports don’t necessarily mean more jobs, according to the study, and governments need to focus on better policies to get the maximum benefit of trade. With the right policies, India can ensure that greater export orientation can boost workers’ gains from trade and spread them more widely, so benefiting disadvantaged groups, the authors said.
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DONALD TRUMP ACTS TOUGH ON INDIA; US TO WITHDRAW ZERO DUTY IMPORT BENEFIT ON 1,784 ITEMS

In a move that analysts said went against the established tenets of multilateral trade, the United States has decided to withdraw duty benefits on annual exports worth $5.6 billion from India under the so-called Generalized System of Preferences (GSP) by May. Washington’s decision, based on its assumption that New Delhi has failed to assure America of equitable and reasonable market access comes at a time when the two countries were close to an amicable trade deal that would have accommodated the principal interests of both sides. Anup Wadhawan and exporters discounted any major impact of the move, saying the total duty concession under the GSP was only about $190 million a year, and most of the key products, in any case, are already outside its ambit. However, given that Indian exports are struggling and the slow growth in global trade among other sticky issues like high logistical and labour costs are dampening prospects of a major revival in the near term, the US decision could not have come at a worse time for the country. US president Donald Trump has recently indicated his resolve to launch a trade offensive against India by calling it a high-tariff nation and talking of a reciprocal tax. The US move could also harden New Delhi’s resolve to slap proposed retaliatory tariff worth $235 million against the Trump administration’s extra 25% levy on steel supplies. The exports under the GSP account for roughly 11% of India’s total goods exports to the US. Under the GSP, 1,784 products — ranging from certain engineering goods and organic chemicals to textiles — are exported from India to the US at zero duty However, these products typically attract low duties there — for instance, the engineering goods and textiles covered under the GSP typically attract less than 3%. Nevertheless, some leather products, processed food items and handlooms could see some impact, which will impact small companies and individuals that produce them. Ravi Sehgal, said the cost of locally-produced engineering goods that enjoy GSP benefits are still 10% higher than imported ones. Also, while Indian competitiveness will erode by 2-3 percentage points vis-a-vis competitors like Vietnam, Malaysia and Thailand, exports are unlikely to suffer, given the quality of its products and ability to supply in large volumes.
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FIR REGISTERED IN CIRCULATION OF FAKE NEWS ABOUT CBSE QUESTION PAPER LEAK

The Central Board of Secondary Education (CBSE) on Wednesday approached Delhi Police in connection with circulation of fake news about question paper leak, following which an FIR was registered. The board has located a number of uploads available on YouTube falsely claiming to have access to the original question papers of subjects in which examinations are yet to be conducted such as Accountancy, Chemistry, Geography for Class XII and English, Mathematics and Science for Class X, a senior CBSE official said. An FIR has been registered in this connection and police has also been appealed to (take) suitable and strict action against the miscreants under relevant provisions of IPC and IT Act so that the sanctity of examination is not adversely affected, the official said. The board has also appealed to students and parents to remain vigilant and calm and cooperate with it in dealing with such unsolicited situations.
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INDIAN ARMY WARNS PAKISTAN AGAINST TARGETING CIVILIANS ALONG LOC

The Indian Army on Wednesday issued a stern warning to Pakistan against targeting civilians on the Indian side of the Line of Control (LoC), saying that any further provocation or misadventure by it will have dire consequences. In the last 24 hours, the Pakistan Army resorted to intense and unprovoked firing with heavy calibre weapons in selected areas of Krishna Ghati and Sunderbani, targeting Indian posts and civilian areas with mortar bombs and heavy artillery guns, the Army said in a statement. It said that it effectively retaliated to the attack and that there have been no casualties on the Indian side We would reiterate that as a professional Army, we are committed to avoid civil casualties, especially along the LoC. All actions taken by our defence forces are targeted towards counter terrorism and terrorist infrastructure, away from civilian areas, to avoid civilian casualties, the Army said. We are maintaining strict vigil along the Line of Control and IB (International Border). Any further provocation or misadventure by Pakistan will be responded in a befitting manner with dire consequences.
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GIANTS OF INDIA INC. WADE INTO RUPEE BOND MARKET AS COSTS DROP

Rupee bond sales are gathering pace once again as some of India’s bellwether companies consider tapping the market, after a lull in February. A flurry of fundraising in the beginning of the year cooled last month as issuers waited for cues on rates from the federal budget and monetary policy review. Sales are now back on track as large firms wade in to take advantage of falling financing costs. That’s adding to optimism on issuance.
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ARMED FORCES SEEK ADDITIONAL SUPPLIES FROM OFB AS INDO-PAK TENSION RAGES ON

As tensions between India and Pakistan rage on after two rounds of aerial skirmishes, the Indian armed forces have placed additional requisitions with the Ordnance Factory Board (OFB) for specific items. Saurabh Kumar said, There is no scarcity of ammunition with the three branches of the Indian armed forces and they are adequately supplied. But there have been some additional requirements in recent times. Kumar said, This time, it was an aerial dogfight. However, he declined to elucidate further. OFB is also in discussions with other countries to manufacture and supply ordnance and equipment for them. The Board had been producing anti-aircraft guns since 1962 and had upgraded its capability to 12.7 mm air defence guns in 1999. However, the demand for such equipment fell and production lines went idle. Currently laden with an order book of about Rs 50,000 crore, Kumar said more products are on the horizon, which offers huge scope for the private manufacturing sector to bid for defence production contracts.
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ED FINDS NEARLY 10,000 CRORE WORTH OF ANOMALIES IN IL&FS BOOKS

The Enforcement Directorate (ED), which is probing an alleged money laundering case at Infrastructure Leasing and Financial Services Ltd (IL&FS), suspects that at least 10,000 crore was used for purposes other than stated ones according to two people with direct knowledge of the matter. A sum of 10,000 crore could have been routed or layered for other than their stated purposes, said one of the two people cited above, requesting anonymity. The Enforcement Directorate is already probing the role of former chairman of IL&FS, Ravi Parthasarathy, former vice-chairman Hari Sankaran, two subsidiaries and 18 others for allegedly siphoning off funds from the books of the IL&FS group of companies. The report is also being examined by Serious Fraud and Investigation Office (SFIO), which has submitted two interim reports to the National Company Law Tribunal (NCLT), highlighting financial irregularities and has pulled up the auditors of IL&FS group companies for not proactively detecting financial irregularities.
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DELHI HC SLAMS POLICE OVER PROBE INTO POCSO CASE

The Delhi High Court has pulled up Delhi Police over the manner in which they investigate cases related to sexual violence against minors, saying it shakes the faith of society in the system of administration of the criminal justice in India. A bench of Justice Siddharth Mridul and Justice Sangita Dhingra Sehgal expressed displeasure over the way in which Delhi Police’s investigating officer probed a case involving the alleged illegal confinement and sexual assault of a five-year-old boy by a bus conductor. As per the complaint made by the minor’s parents, their child was allegedly confined in a classroom by the helper and sexually assaulted in 2015. Police had then booked the man for unnatural offence, wrongful confinement and under the POCSO Act. The accused denied the allegation and claimed he was falsely implicated. After the trial, a Delhi court acquitted him. The HC, however, found that while examining the testimony of PW-7 (investigating officer), we are of the view that the investigation of the case was not carried out in a right perspective.
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MEHBOOBA MUFTI PROTESTS CENTRE’S BAN ON JAMAAT-E-ISLAMI, CALLS FOR RELEASE OF DETAINED MEMBERS

With the Centre’s continuing crackdown on Jamaat-e-Islami (JeI) resulting in the detention of a number of activists, the People’s Democratic Party (PDP) led by its chief and former Jammu and Kashmir Chief Minister Mehbooba Mufti, held protests in Anantnag on Wednesday, asking for lifting of the ban against the outfit. Mufti had earlier condemned the move by the Centre. Demanding release of elderly members, she also warned of escalating her agitation. We want that the ban must be lifted. We will go to the district level now, then we will go to every segment. Elderly people who have been arrested must be released, she was quoted by ANI as saying. The Centre banned the organisation for five years under Section 3 of the Unlawful Activities (Prevention) Act (UAPA). It also said that the JeI was involved in anti-national and subversive activities intending to cause disaffection. Mufti further said her party would continue to protest till the ban was lifted. We will protest in every nook and corner of the Kashmir valley until the Centre lifts the ban on Jamaat-e-Islami and release its members.
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FUNDS DROUGHT FEAR FORCES PAKISTAN’S HAFIZ SAEED ACT

Pakistan cracked down on Mumbai terror attack mastermind Hafiz Saeed’s Jamaat-ud-Dawa (JuD) and Falah-e-Insaniat Foundation (FIF) on Wednesday, a day after a top official warned that the country would face strict international sanctions if it failed to implement the recommendations made by the Paris-based Financial Action Task Force. FATF is an international body mandated to combat money laundering and terror financing. According to reports, the government took control of several seminaries and assets belonging to JuD and FIF in Rawalpindi, Attock and Chakwal districts. On Tuesday, Pakistan’s National Counter Terrorism Authority had put JuD and FIF on a list of 70 groups proscribed by the interior ministry. Arif Ahmad Khan, federal secretary of the finance division, had warned that global economic sanctions could be imposed on Pakistan in case the country failed to take action on FATF recommendations. We have to proceed against the banned outfits in the light of FATF’s recommendations, he said.
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YASIN MALIK BOOKED UNDER PUBLIC SAFETY ACT

Jammu and Kashmir Liberation Front chairman Yasin Malik has been booked under the Public Safety Act (PSA) that can keep him in detention for up to two years, JKLF sources said on Thursday. Malik Sahab was informed today that he has been booked under the harsh PSA and would be shifted to Kot Balwal Jail in Jammu district, an informed source said. The JKLF chief was taken into preventive custody on February 22 and was lodged in the Kothibagh police city in Srinagar. Under the PSA, a person in Jammu and Kashmir can be kept in detention for a period of two years without any judicial intervention.
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CHINA CAN'T GET ENOUGH OF THE WORLD'S CRUDE OIL, COURTESY TEAPOT REFINERIES

Saudi Arabian Oil Co., or Saudi Aramco, sharply raised prices for Asian shipments on Tuesday, lifting its premium on Arab Light crude by 50 cents to $1.20 a barrel above the Oman-Dubai benchmark. That’s a dramatically steeper increase than the 15 cents to 35 cents expected by traders, and it’s being driven by a bottomless thirst from Chinese refiners. China’s imports of crude have been surging since 2015, when Beijing started allowing its teapot refineries — small-scale independent operations that are mostly based in Shandong province — to buy from abroad. Teapots can largely explain the 50 per cent growth of inbound shipments since 2014. If you subtract their import quotas from China’s total crude imports, it looks like state-owned PetroChina Ltd., China Petroleum & Chemical Co. and Cnooc Ltd. have been unloading more or less the same 300 million-odd annual metric tons all along. What are all these barrels being used for? After all, diesel and fuel oil (the heavier fractions that make up the larger share of teapots’ output) have seen declining demand in China for years. Apparent diesel consumption in 2018 was running at its lowest levels since 2009, according to data compiled by Bloomberg, largely because of a decline in heavy industry. Even gasoline, which almost caught up with diesel last year as the largest segment of domestic demand, has been struggling in the face of fuel-efficiency regulations and slumping auto sales; PetroChina expects demand to peak in 2025. The answer comes when you look outside China. The teapots’ increased production has mostly been trapped in the domestic market by stringent export quotas, but that’s allowed the state giants to sell displaced barrels from their own refineries on global markets. Exports of refined products — in particular, diesel going to Hong Kong, Singapore, the Philippines, Australia and South Korea — have jumped pretty much in line with the import surge. This glut is likely to get markedly worse this year. Some 890,000 barrels a day of new refining capacity is due to open, according to Bloomberg Intelligence analyst Lu Wang, with another 1.08 million barrels coming online in 2020 and 1.12 million barrels in 2021. With China’s government setting a reduced economic growth target of 6 per cent to 6.5 per cent, it’s hard to see domestic demand soaking up all that fresh capacity. Meanwhile, export quotas granted to major oil companies are already up 13 per cent from a year earlier and may rise further.
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HUAWEI STRIKES BACK: AFTER CANADA, COMPANY ANNOUNCES LAWSUIT AGAINST US

Huawei Technologies Co. sued the US government for barring its equipment from certain networks delivering a legal riposte to American accusations it aids China in espionage.' The lawsuit is aimed at a US statute that blocks government agencies from using equipment from Huawei and its domestic rival ZTE Corp., according to a complaint filed in federal court in Texas. Huawei argues in the suit that it’s unconstitutional to single out a person or a group for penalty without a fair trial. The action signals a more aggressive response from the company toward its US accusers, who have been trying to persuade other countries to ban Huawei gear from crucial fifth-generation communications networks. The complaint landed days after finance chief Meng Wanzhou sued Canada’s government for allegedly trampling her constitutional rights during her December arrest -- an effort to discredit the case against her as she awaits potential extradition to the US for bank fraud. In its US case, Huawei is taking aim at a provision in the 2019 National Defense Authorization Act. That provision bars any executive agency, government contractor or company that receives a government loan or grant from using Huawei and ZTE equipment, according to the complaint. The Chinese company argues that the provision is a bill of attainder, a legislative punishment without trial that’s prohibited by the US Constitution. That’s a very hard argument to win but certainly something that they can try in an effort to slow down the federal government, Peter Henning, a professor at Wayne State University Law School, told.
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JAISH-E-MUHAMMED DOES NOT EXIST IN PAKISTAN: MILITARY SPOKESPERSON

Jaish-e-Muhammed which claimed responsibility for the Pulwama attack does not exist in Pakistan the military’s spokesperson has said. Asif Ghafoor when asked if the two countries were close to war after the attack told, We were I would say close to war because when they [India] violated the airspace under token aggression, we went for response. He said that troops had been increased because it is natural as part of military planning. When the situation gets hot there are safeguards. Those safeguards are in place on both sides. When asked about Indian claims regarding the Balakot air strike, Ghafoor said that not even a single brick had been found there nor were there any causalities. Their [Indian] claims are false, he said.
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OECD LOWERS GLOBAL GROWTH FORECAST OVER TRADE TENSIONS

Global trade tensions and political uncertainty are weighing on the world's economy the OECD warned on Wednesday, cutting its global growth forecast for this year to 3.3 per cent, down from the 3.5 per cent it predicted in November. The Organisation for Economic Co-operation and Development, which groups the world's top developed economies, also warned of potential risks including China's slowdown sharpening and knock-on effects in the event of a no-deal Brexit. High policy uncertainty, ongoing trade tensions, and a further erosion of business and consumer confidence are all contributing to the slowdown, the Paris-based OECD said. The OECD revised growth downwards in almost all of the countries in the G20 group of industrialised and emerging nations. The 19-nation eurozone was particularly hard hit, with predicted growth dropping from 1.8 per cent to 1 per cent. The growth forecast for European powerhouse Germany sunk to 0.7 per cent from 1.4 per cent, while Italy's was slashed from 0.9 per cent to -0.2 per cent. Although contingency measures to soften the impact of a no-deal outcome are being taken by both sides, UK-EU separation without an agreement would still be a major adverse shock for Europe and possibly elsewhere in the world. For the eurozone in 2020, the OECD cut its forecast to 1.2 per cent, down 0.4 points from its last outlook report. Growth for China, which is facing an economic slowdown, was revised down slightly to 6.2 per cent from 6.3 per cent for this year and steady at six percent for 2020.





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