GST
COUNCIL TO MEET NEXT WEEK TO FORM REALTY RULES
In order to give more clarity on the reliefs
granted to the realty sector, the GST Council’s next meeting will be held on
19th March through video conference. The meeting is expected to finalize the
rules and regulations for the ongoing under-construction residential projects
In the meeting the council is likely to limit the usage of tax credits
collected by builders and allow a concessional rate for up to 10 percent of
commercial property such as shops in residential areas, expecting realtors to
reduce prices. Reportedly, the Government is in favor of accepting the recommendations
of a ministerial panel, which had suggested that intermediate tax on
development rights, lease premium, floor space index and similar items should
be exempted for houses when a completion certificate is not issued. The GST
Council, last month, suggested reducing the levy on under-construction
residential projects to 5 percent without an input tax credit from the current
12 percent.
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GST
COUNCIL MAY RESTRICT USE OF TAX CREDITS ACCUMULATED BY BUILDERS
The GST Council, which is scheduled to meet
on March 19, may restrict the use of tax credits accumulated by builders and
allow a concessional rate for up to 10% of commercial property, such as shops,
in residential complexes, expecting developers to pare prices. At the last
meeting, the council — comprising state and Union finance ministers — had agreed
to reduce the levy on under-construction residential projects to 5% without
input tax credit (ITC) from the current 12%, with credit for taxes paid on inputs
such as paints, steel, cement and sanitary ware. For affordable housing
projects, the rate will be slashed to 1% without ITC from 8% with tax credit.
But the modalities for the rate reduction, which will be effective, are yet to
be worked out. Sources indicated that the officials were in favour of accepting
the recommendations of a ministerial panel, which had suggested that
intermediate tax on development rights, lease premium, floor space index and
similar items should be exempted for houses where a completion certificate has
not been issued. Given the government assessment that builders were misusing
the benefit of tax credit and did not pass on the gains, the Centre is looking
at the option of putting high claims under the lens. The government is keen to
ensure that builders do not raise prices, citing the withdrawal of input tax
credit, and should actually reduce the rate. Our analysis has shown that they
were not passing on the benefits to consumers, although they were showing very
high tax credit and paying a very low amount of tax in cash, said an official.
According to the government’s calculation, prices should actually come down.
For a Rs 40-lakh apartment, the builder should have factored in the impact of
input tax credit, reducing the value to around Rs 38 lakh and then added the
margin of, say, around 10%. As a result, the builder should have charged 12%
GST on around Rs 42 lakh, translating into a tax of around Rs 5 lakh, which
would have put the overall cost at Rs 47 lakh. Without ITC, with a 10% margin,
the cost will now come to around Rs 44 lakh. A 5% tax will mean that the same
apartment will cost Rs 46.2 lakh, according to the government’s
back-of-the-envelope calculations.
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AAR
MAHARASHTRA RULES OUT GIVING INPUT TAX CREDIT FOR GOLD SCHEMES
The Authority for Advance Ruling (AAR),
Maharashtra, has ruled against input tax credit for the gold schemes offered by
companies to its customers to encourage them to meet the business targets. AAR
rulings are state-specific but these have persuasive value to be taken as a
precedent. Biostadt India Ltd, a company engaged in manufacturing and
distribution of crop inputs and hybrid seeds, had approached AAR on whether a
gold scheme announced by it would allow it to claim input tax credit. The
company had come out with a ‘Kharif Gold Scheme, 2018’ under which it offers 10
gm of gold coin to anyone buying a stipulated amount of products from it.
Similarly, anyone buying these products worth a minimum sum was offered eight
grams of gold coin. Gold attracts a 3 per cent goods and services tax (GST). AAR
ruled that the company cannot claim input tax credit on procurement of gold
coins, which are to be distributed to customers. It treated the scheme as
gifts. Input tax credit on gifts will not be available when no GST is paid on
its disposal, it said. AAR relied on the Section 17(5)(h) of the Central GST
Act, which says, input credit shall not be available in respect of goods lost,
stolen, destroyed, written off or disposed of by way of gift or free samples.
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CBDT
ALLOWS OFFSHORE FUND MANAGERS TO OPERATE FROM INDIA
The Central Board of Direct Taxes (CBDT) has started
paving the way for offshore fund managers to relocate to India for managing
their offshore funds without having to face any adverse tax consequences This
is being done for the public markets space, mainly foreign portfolio investors
(FPI) structures. Several fund managers have, in recent days, finally made the
cut and got the pre-approvals from the CBDT (under Section 9A of the Income Tax
Act). Approvals were given three days back for a set of FPI fund managers, said
industry experts. Section 9A, which was introduced in April 1, 2016, provides
that only a fund manager’s income or management fee will be subjected to tax
and not the entire global income of the global fund. To get this, funds had to
meet certain conditions. Gautam Mehra, said the first set of pre-approvals is a
path-breaking development for the listed market funds and could pave the way
for extending the ‘Make in India’ concept to this segment of the fund
management industry. It would be important to extend this benefit to all
private equity and venture funds as well, Mehra added. This could open the
floodgates and prompt more Indian fund managers located outside India to
return. On-shoring of fund management — which the government had promised to
facilitate in Budget 2015-16 through an enabling tax regime — is finally taking
wings, say experts. FPIs, which have got the taxman’s nod of meeting the
Section 9A conditions, can now move their fund managers to operate out of India
without fear of 40 per cent taxation in India on their global incomes. Tushar
Sachade, said that fund managers sitting in offshore jurisdictions such as
Singapore can now move to India and start managing from here the offshore funds
located in Singapore. This will also boost flows into India as fund managers
will be closer to the ‘deal ecosystem’, Sachade said. Because of the tax
issues, fund managers were till date sitting out of Singapore. Now, they can
come here and manage the Singapore funds sitting out of India, he said. For the
last three years, no single approval was given by the CBDT. Now, for the public
markets at least, things are moving, a tax expert said.
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HEAVY
PENALTY IS NOT WORTH AVOIDING E-WAY BILL: EXPERTS
Traders should supply their goods using e-Way
Bill only, warned tax experts. They have found cases where in addition to
normal provisions, special provisions are also applied and traders have been
subjected to heavy penalty if goods were found to be transported without e-Way
Bill. According to market grapevine, government has started taking harsh
measures to meet the revenue targets. These results in additional fines. These
include flat penalties of Rs 10,000 and Rs 25,000 as well as a fine equal to
the the value of goods. In this case it would be Rs 1 lakh. So the total pay
out will increase from Rs 36,000 to Rs 1,71,000, if all other provisions are
applied.
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DRT
TRANSFERS UBL SHARES WORTH OVER RS 1,025 CR HELD BY UBHL
Liquor firm United Breweries Ltd (UBL) Monday
said the Debt Recovery Tribunal (DRT) in Bengaluru has transferred 2.80 per
cent stake worth over Rs 1,025 crore held by Vijay Mallya-linked United
Breweries (Holdings) Ltd in the company. The recovery officer-I, DRT-II,
Bengaluru has transferred 74,04,932 equity shares comprising 2.80 per cent of
the total issued and paid up equity share capital of the company in its name
from the demat account of United Breweries (Holdings) Ltd which is under
liquidation, UBL said in a regulatory filing. Based of the weighted average
price of United Breweries Ltd stock on March 8, 2019 at Rs 1,389.97 apiece,
value of 74,04,932 equity shares of the company is estimated at Rs 1,029.26
crore.
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CAIRN
ENERGY'S RETRO TAX ARBITRATION AWARD DELAYED
Cairn Energy Plc of the UK on Monday said it
expects the long-running arbitration process against the Indian authorities
over retrospective taxation to be more protracted than originally anticipated
and is unlikely to be concluded before late 2019. An international arbitration
tribunal in August last year concluded main court hearings in the British
company's challenge to the Indian government using retrospective legislation to
seek Rs 10,247 crore in taxes. The tribunal was supposed to give an award by
February 2019 but the same is now expected not before the end of the year Cairn
Energy in a statement said it had last month written to the three-member panel
seeking guidance on the likely timing of the arbitration award. The Panel has
now responded that although it remains mindful of Cairn's need for a swift
decision, given its workload and the number of matters before it, it is still
unable to provide specific guidance on timing, the statement said. As a result
of this, Cairn expects that the timetable for issuing the award will be more
protracted than originally anticipated and is unlikely to be before late 2019.
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IT'S TIME
TO SOLVE INDIA'S HUGE TAX LITIGATION PROBLEM
In early February, the Central Board of
Direct Taxes (CBDT) set up a task force on litigation management to examine,
among other things, ‘whether the ITAT (Income Tax Appellate Tribunal) has
passed perverse or irregular orders, or where submissions of the department
representative (counsel for the I-T department) have not been recorded by the
ITAT’. It proposes to take further action based on the findings, after taking
up the matter with the law ministry. A little over 90,000 cases were pending at
the ITAT level, with corresponding contentious I-T demands aggregating to Rs
2.01 lakh crore, as of March 31, 2017. It is no secret that the I-T department
is the largest tax litigant. This fact, with a low success rate, doesn’t paint
a pretty picture. Appeals filed by the I-T department constituted 85% of the
appeals as of March 31, 2017, with its success rate being less than 30%. For
the doubting Thomases, these statistics are drawn from the Economic Survey
2018. Under the traditional litigation process, the first level of appeal is
with the commissioner (appeals). Then, in hierarchical order, with ITAT, which
is also the final fact-finding authority If the case involves a question of
law, appeals can be filed with the high courts, and a further appeal lies with
the Supreme Court. Litigation management has rightly been the focus of the
Central Board of Direct Taxes (CBDT) for the last few years. But some steps are
puzzling. It also includes instances where he levies a penalty on the additions
confirmed by him to a taxpayer’s income. Understandably, this step has raised
questions among taxpayers and in professional circles. According to this
report, at the commissioner (appeals) level, the tax amount caught up in 3.22
lakh pending cases was Rs 6.38 lakh crore, as of March 31, 2018. While CBDT may
have its own reasons for the scope outlined for its committee, as well as the
grant of performance credits, it also needs to introspect and plan to nip
litigation in the bud. Often, arbitrary or irrational demands are raised by
assessing officers, because they must meet unrealistic targets on which hinges
their performance appraisal. This results in the taxpayer invariably filing an
appeal. To curb this tendency, a few years ago, a ‘high-pitched scrutiny
assessment committee’ was set up. Aggrieved taxpayers could approach this
committee. The idea was to deter high-handedness by punitive measures such as
transfers. Action has been taken in a few cases, the general perception being
that the initiative has been a non-starter. Adequate resources need to be
committed and adequate publicity given to this endeavour. India’s advance
pricing mechanism has helped curb litigation in the arena of transfer pricing,
even as the advance ruling mechanism faced administrative challenges. Alternate
routes, such as private rulings given by high-ranking I-T officials, or an alternative
dispute mechanism using third-party mediation, could be introduced. This would
ensure that matters, especially complex ones relating to general anti-avoidance
rule (Gaar), don’t reach the litigation stage.
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MAKE
EVERY DELHIITE PAY YAMUNA CESS: VIJAY DEV
Vijay Dev has asked Delhi Jal Board to start
the process of levying environmental compensation of Rs 100-300-500 per
household. In a meeting of the National Green Tribunal-appointed monitoring
committee on Yamuna, the top bureaucrat of the city government expressed
displeasure at the delay and directed the CEO DJB to pursue levy of sewage
charges by following the most feasible alternative without further loss of
time. In 2015, holding every Delhi resident responsible for polluting the
Yamuna, the NGT had ordered every household to pay a certain amount each month
as environment compensation ranging between Rs 100 and Rs 500. However, not a
single penny has been collected as authorities are yet to initiate the
collection process. It was informed by the members of the monitoring committee
that levy of environmental compensation (EC) under Polluters Pays Principle was
a direction of National Green Tribunal for all households, irrespective of
whether they lived in a sewered or unsewered area. However, the Delhi Jal Board
is yet to comply with the said directions issued in 2015, minutes of the
meeting held last week states.
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ICICI-VIDEOCON
LOAN CASE: DEEPAK KOCHHAR MAY BE PROBED FOR BENAMI ASSETS
Nothing concrete has been found to establish
tax evasion against Deepak Kochhar’s NuPower Renewables in the income-tax (I-T)
department's preliminary probe into the ICICI Bank-Videocon loan case. However,
tax sleuths are thinking of investigating some of his properties under the
Benami Transactions (Prohibition) Act. In April last year, the tax authorities
had questioned former ICICI Bank chief executive officer Chanda Kochhar’s
husband, Deepak Kochhar, over a Rs 405 crore investment by Singapore-based
Accion Diversified Strategies Fund (ADSF) through its Mauritius subsidiary DH
Renewables Holding. The transactions have been carried out in the guise of
loans and other business transactions and hence prima facie no incriminating
tax evasion angle has been identified said an official in the know, adding that
the probe findings did indicate money laundering and possibilities of round
tripping, he added. Source said the enquiry report had been shared with the
Enforcement Directorate (ED), which is probing the violation of the Prevention
of Money Laundering Act. The tax department is said to have sought transcripts
of communication between ADSF and NuPower and agreements between the two before
or after such transfers of funds, the share valuation report for investment in
NuPower, along with the reason for making an investment at a premium, and
ADSF’s board resolution approving investment to be made in the wind energy
firm.
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NIRAV
MODI DIVERTED RS 934 CRORE TO PERSONAL ACCOUNTS
Fugitive diamond merchant Nirav Modi diverted
Rs 934 crore into his personal account and two other accounts in the name of
his wife and father, says the supplementary chargesheet filed by the
Enforcement Directorate in the Mumbai special court on Friday. Of this, Rs 560
crore ($80 million) has been credited into his account, Rs 200 crore ($30
million) into wife Ami’s account and Rs 174 crore ($25 million) into his father
Deepak Modi’s personal bank account maintained abroad, officials said.
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NIRAV
MODI KEPT MOVING HOUSES IN UK TO EVADE PUNITIVE ACTION: SOURCES
Jeweller Nirav Modi, accused of involvement
in the Punjab National Bank fraud, frequently changed his address in the UK to
evade punitive action— at least thrice in a short span of time, said people
with knowledge of the matter. Nirav Modi was constantly shifting his base. From
central UK he moved to Manchester recently before moving into a flat in London.
Our agencies were keeping tabs on him, said a senior government functionary
requesting anonymity. The UK home office told the Indian authorities on March 8
that India’s request to extradite Modi had been certified. The move will now be
considered by the Westminister Magistrates’ Court. The Indian agencies told the
British authorities that Modi had travelled outside the UK on three occasions
despite his passport having been revoked in February last year. This was
despite repeated reminders sent to the British. It is a matter of serious
concern and probe that he (Modi) managed to travel thrice outside the UK. Dates
of his travel were shared with the British authorities seeking immediate
attention, said the person cited above. The Indian agencies are awaiting Modi’s
formal arrest. It has been observed that normally London courts do not overturn
the sanction authorised by the home secretary.
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NO
COOPERATION FROM PAKISTAN ON TERRORISM: AFGHAN NSA
India and Afghanistan have been hurt by
terrorism which is like cancer and threatens peace in the region, a top Afghan
diplomat has said while appealing to the international community not to view
his war-torn country as an isolated case. Hamdullah Mohib said Pakistan talked
about brotherhood and historical linkages but hardly shows any cooperation in
combating terrorism. We haven't seen any cooperation from Pakistan, Mohib said.
Replying to a question on Afghanistan's estimate of cooperation from Islamabad,
the top diplomat said Pakistan is always very nice, they speak about
brotherhood, historical linkages and the likes but then all we see is
terrorists coming our way and no brotherhood. Mohib said India and Afghanistan
were hurt by terrorism and both the countries have suffered a great deal. We
understand what the cost is that we are paying, he said. But it (terrorism) is
not just a threat to India and Afghanistan. Terrorism is like cancer. It is our
problem today but it will soon be someone else's problem once it's no longer ours,
Mohib said. Referring to the Afghanistan-Pakistan Action Plan for Peace and
Solidarity (APAPPS), he said the plan stayed only on paper and did not get
implemented. We have never seen any progress on action. And so until we see
willingness to make action, we are not going to buy any more words from
Pakistan, he said.
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RAJA RAVI
VARMA, GAITONDE, PADAMSEE: NIRAV MODI’S ART COLLECTION TO GO UNDER THE HAMMER
ON MARCH 26
That diamantaire Nirav Modi likes to live the
high life even as a fugitive was evident from a recent viral video that showed
him walking around London in the now infamous Rs 9-lakh ostrich leather jacket.
Before he fled India, the jeweller had built himself quite the reputation as an
art connoisseur, often posing for the media with his collection of masters as a
backdrop. Now, the enviable art collection he built as a status symbol is going
under the hammer in Mumbai on March 26. In a first, the income-tax department
has engaged the services of Saffronart, a professional auction house, to sell
68 works that include works by some of India’s priciest artists such as V S
Gaitonde, Akbar Padamsee and Raja Ravi Varma. A Saffronart representative said
the artworks had been put up for sale on behalf of the government of India
through the tax recovery officer, income tax department, Central-3, Mumbai. A
proclamation of sale issued by the I-T department showed that the auction was
aiming to recover Rs 96-crore dues from Camelot Enterprises, a shell company
set up by Modi. Saffronart has set the approximate estimate value for the
auction at Rs 30-50 crore though it remains to be seen how much the collection
will go finally go for.
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ICAI
POSTPONES CA EXAMS FOR MAY 2019 TO JUNE 2019 IN VIEW OF 17TH LOK SABHA
ELECTIONS
ICAI has announced that in view of Elections
to the 17th Lok Sabha Parliamentary Constituencies across the country, the
Chartered Accountant Examinations initially scheduled from 2nd May 2019 to 17th
May 2019 stand rescheduled and the said examinations shall now be held from
27th May 2019 to 12th June, 2019.
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GOVT
NOTIFIES PHASED IMPORT DUTY HIKE ON ELECTRIC PV PARTS, LITHIUM-ION CELLS
The government has notified phased increase
in basic customs duty on parts of electric passenger vehicles to be assembled
in India to 15 per cent from April 2020 and 10 per cent on imported lithium-ion
cells by April 2021 to promote domestic manufacturing of EVs. The notification
is part of the road map under the phased manufacturing programme (PMP), and
also entails doubling the basic customs duty on completely built units of
electric buses and trucks to 50 per cent from April 2020. Currently, the basic
import duty on completely knock-down kits used in electric buses, passenger
EVs, electric two-wheelers, three-wheelers and electric trucks is 10 per cent,
which will be raised to 15 per cent from April 2020. Basic customs duty on
parts used in manufacturing electric vehicles (EVs) like AC or DC charger,
motor and motor controller; power control unit, among others, will also be
increased to 15 per cent from nil at present starting from April 2021, as the
Centre eyes to promote mass adoption of EVs through schemes like FAME II to be
rolled out from April. The basic import duty on battery packs used in
manufacturing electric vehicles will also be increased to 15 per cent from the
current 5 per cent from April 2021. The basic import duty on lithium ion cells
used in manufacturing of lithium ion accumulator for EVs will be doubled to 10
per cent from April 2021. The phased manufacturing programme is part of a road
map wherein through graded duty structure indigenous manufacturing of electric
vehicles, its assemblies and parts or inputs of the sub-assemblies shall be
promoted over a period of time. The intention is to substantially increase
value addition and capacity building within the country. The PMP shall enable
the manufacturers in the sector to plan their investments for establishment of
a robust indigenous electric vehicles and related sub-assembly/ components
manufacturing base in India, the heavy industries ministry said in the
notification.
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MORE
PROOF OF CHRISTIAN MICHEL PUSHING EUROFIGHTER'S CASE, CLAIMS AGENCIES
More evidence has emerged against
AgustaWestland bribery accused Christian Michel’s alleged role in pushing
Eurofighter’s case during the UPA regime in 2010 after Dassault Aviation’s
Rafale was shortlisted where he suggested lobbying key figures in the political
establishment. Official documents received from Italian authorities, in
connection with the Rs 423 crore AgustaWestland bribery case, has given
investigating agencies some key dispatches from Michel that indicate his
contact with three bosses in India who, he claimed, could be worked on to get
Eurofighter back in the race for India’s acquisition of fighter aircraft. The
dispatches, which are in the April-May 2010 period, speak about the importance
of identifying bureaucratic and political navigators in the Indian
establishment who could help push the deal for the Eurofighter. Only three
candidates are available for this and only one is available right now, he is
believed to have told Finmaccanica bosses, hinting at his proximity with
decision makers in India. Michel also claimed to be in constant touch with then
Eurofighter CEO Enzo Casolini. Interestingly, Casolini had claimed in 2013 that
Eurofighter was still in contention when the UPA government was in advanced
negotiations with Dassault Aviation for acquisition of 126 Rafale jets.
Investigators expressed surprise at the confidence shown by Michel in pushing
Eurofighter’s case despite the consortium being out of the race because of high
prices and also as it was a single-engine aircraft compared to the twin-engined
Rafale.
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ED
ATTACHES RS 8.4-CRORE ASSETS OF CHOPPERS SCAM ACCUSED GAUTAM KHAITAN
Assets worth Rs 8.46 crore of Delhi-based
lawyer Gautam Khaitan, an accused in the Rs 3,600 crore VVIP choppers scam
case, have been attached by the ED as part of a second criminal probe against
him for allegedly possessing undisclosed foreign accounts, the agency said
Monday. The latest case was filed by the agency taking cognisance of an Income
Tax Department case under the Black Money (Undisclosed Foreign Income and
Assets) Act. It said Khaitan held beneficial interest, ownership in foreign
assets/company/accounts and had failed to disclose these in his return of
income filed before the I-T authorities. It said probe revealed that Khaitan maintained
six foreign bank accounts in his name, in the name of companies owned by him
through hundred per cent shareholding and in joint name with his father and
wife in three banks namely Barclays Bank, Singapore Bank and UBS Bank.
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PNB SCAM:
ED FILES FRESH CHARGE SHEET AGAINST NIRAV MODI UNDER ANTI-MONEY LAUNDERING LAW
The Enforcement Directorate (ED) has filed a
fresh charge sheet against Punjab National Bank (PNB) scam accused Nirav Modi
under the anti-money laundering law, officials said on Monday. They said the
charge sheet or the prosecution complaint has been filed before a special
Prevention of Money Laundering Act (PMLA) court in Mumbai. This is a
supplementary charge sheet against the diamantaire and few others and the ED
had recorded additional evidences gathered in the case and attachments made,
they said.
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VVIP
CHOPPERS CASE: ED ATTACHES PARIS PROPERTY OF CHRISTIAN MICHEL'S EX-WIFE
The ED said Monday it has attached a
Paris-based property worth Rs 5.83 crore of the ex-wife of Christian Michel,
the alleged middleman arrested in the VVIP choppers scam case, under the
anti-money laundering law. It said a provisional order under the Prevention of
Money Laundering Act (PMLA) has been issued to attach the asset at 45 Avenue,
Victor Hugo in France and it is in the name of Ms SCI Solaime and belongs to
Michel's ex-wife Valerie Michel. The agency said its probe found that Michel
had transferred the amount received as kickbacks to various entities, including
euro 9,22,185.76 (equivalent to Rs 5,83,40,422) to his ex-wife Valerie Michel
and subsequently to SCI Solaime for investment in purchase of the immovable
property.
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VVIP
CHOPPER CASE: DELHI COURT SEEKS TIHAR RESPONSE TO ED REQUEST TO QUESTION CHRISTIAN
MICHEL IN JAIL
A Delhi court Monday sought a response from
Tihar Jail authorities on the Enforcement Directorate’s plea to interrogate
Christian Michel, who was arrested in the AgustaWestland chopper case, inside
the prison. The jail authority has been asked to submit its response by
Tuesday. Special Judge Arvind Kumar also issued a production warrant for
Tuesday against Michel after his lawyer alleged mental torture inside jail. He
was arrested by the ED on December 22 last year after his extradition from
Dubai The court had earlier lashed out at the jail’s authorities for failing to
justify the shifting of Michel to a high-security cell in isolation, saying it
will start an inquiry if it does not get a proper response.
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SAMJHAUTA
BLAST CASE: NIA COURT POSTS MATTER FOR MAR 14
A special NIA court Monday put off the
pronouncement of verdict in the 2007 Samjhauta Express blast case and posted
the matter for March 14 after a Pakistani woman filed a petition claiming she
had some evidence relevant to the case. The petition was filed by an advocate
on behalf of Rahila L Vakeel, National Investigation Agency (NIA) counsel Rajan
Malhotra said. Special NIA court judge Jagdeep Singh posted the matter for
March 14 after the application was filed. The final arguments in this case were
concluded on March 6 and the verdict was reserved for March 11. Sixty-eight
people, mostly Pakistan national, were charred to death in the blasts in two
coaches of the Samjhauta Express near Panipat on February 18, 2007. The NIA in
its chargesheet had named eight persons as accused.
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18
TERRORISTS, INCLUDING 6 FROM JEM, KILLED SINCE PULWAMA ATTACK: ARMY
Eighteen terrorists, including six from
Pakistan-based Jaish-e-Muhammed, have been killed in various counterterror
operations since the February 14 Pulwama attack in which 40 CRPF personnel were
martyred, the Army said on Monday. The Army said that security forces have also
killed the Pulwama terror attack mastermind - JeM terrorist Mudasir Ahmed Khan
- in an encounter at south Kashmir's Tral area. There has been a significant
dent to the JeM after the killing of Mudasir, IG Kashmir S P Pani said. The
security forces had launched a cordon and search operation in Pinglish after
receiving specific intelligence input about the presence of terrorists in the
area. The operation turned into an encounter after the terrorists opened fire
at the search party of the forces who retaliated.
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PULWAMA
TERROR ATTACK MASTERMIND BELIEVED TO BE KILLED IN ENCOUNTER: OFFICIALS
The mastermind of the February 14 Pulwama
terror attack that killed 40 CRPF personnel is believed to have been killed in
an encounter in the Tral area of South Kashmir, officials said Monday. The
encounter in Pinglish area of Tral in south Kashmir's Pulwama district lasted
past midnight in which Jaish-e-Mohammed (JeM) terrorist Mudasir Ahmed Khan
alias 'Mohd Bhai' was among the three militants killed the officials said. The
bodies of the three militants are charred beyond recognition and efforts are on
to establish their identity, they said. The security forces launched a cordon
and search operation in Pinglish after receiving specific intelligence input
about the presence of militants in the area. The operation turned into an
encounter after the militants opened fire at the search party of the forces who
retaliated. Piecing together evidence gathered so far, security officials said
that 23-year-old Khan, an electrician with a graduate degree and a resident of
Pulwama, arranged the vehicle and explosives used in the terror strike.
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CHINA
REMAINS CRYPTIC ABOUT UN BAN ON MASOOD AZHAR
Amid reports that the resolution to declare
Pakistan-based JeM chief Masood Azhar as a global terrorist would come up in
the UN Security Council on March 13, China on Monday said a responsible
solution can only come through discussions Beijing also said security issues
constituted an important topic in its talks to ease tensions between Pakistan
and India following the Pulwama terror attack. The US, the UK and France had
moved a proposal at the United Nations Security Council (UNSC) after the
Pulwama terrorist attack to designate the chief of the Pakistan-based
Jaish-e-Muhammed (JeM) which claimed responsibility for the Pulwama terror
attack, as a global terrorist. According to reports the resolution was expected
to be taken by the 1267 committee of the UNSC on March 13. China, which has
blocked three times such moves by India and other members of the UNSC, is yet
announce its stand. Lu Kang told media here, First I would like to say that the
UNSC as a main body of the UN has strict standards and rules of procedures.
Some reports have knowledge of inside information the UNSC. I don't know that
can be counted as an evidence, he said.
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INDIA-SICA
TALKS TO TAKE PLACE SOON TO HELP PROMOTE BILATERAL TRADE AND INVESTMENTS
Next round of talks of India- trade body
Central American Integration System (SICA) forum will be taking place in the
next few months, which will encourage better trade and bilateral relationship
between the countries, say government officials. SICA which is a small group of
countries of Central America, is very critical to India as it offers free
exchange of trade with other countries in the United States and also with
European nations. They are keenly to have deeper economic cooperation with
India to boost ties between the two regions. Venkaiah Naidu and President of
Costa Rica Carlos Alvarado Quesada, Secretary East) MEA Ms Vijay Thakur Singh
said that, Both sides are keen that the India-SICA talks should move forward. India
has also been invited to become a member of the Central American Bank for
Economic Integration (CABEI) as extra regional partner as it will help in
bringing further development to the region and it will help in consolidating
India’s presence in the region. According to the MEA, India has been invited to
become a member of the Group of Partner Countries of the Security Strategy of
Central America (ESCA), and agreed to share information about the projects of
such strategy. India has set up of Centres of Excellence in Information
Technology in the SICA countries. India is keen to promote cooperation in the
five pillars of regional integration, as well as, in key areas such as
agriculture, food security, energy security, MSMEs, and capacity building.
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‘263
TERRORISTS AT BALAKOT CAMP AHEAD OF AIR STRIKE’
At least 263 rec- ruits had assembled at
Jaish-e-Mohammed’s terror camp in Balakot just five days before the IAF strike
on February 26, evidence accessed revealed. At the time of the attack, almost
all the trainers and recruits had access to mobile phones the signals of which
were closely tracked by the National Technical Research Organisation (NTRO).
After the IAF strikes, all the signals disappeared without a trace, intel
sources said. Those present at the Balakot facility included 18 senior
commanders of JeM for training the terror recruits. In a huge blow to JeM, all
of them, who were veterans of the war against the US in Afghanistan, are deemed
missing.
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CURRENT
CONGRESS COMPLETE OPPOSITE OF GANDHI JI'S IDEAS, HE WANTED IT TO BE DISBANDED:
PM NARENDRA MODI
Attacking Congress for following dynastic
culture and doing corruption, Prime Minister said Mahatma Gandhi had warned
about this at the time of Independence and had suggested to disband the
Congress. The statement has come at a time when top Congress leaders including
Sonia Gandhi, Rahul Gandhi and Priyanka Varda Gandhi are in Ahmedabad for
Congress Working Committee meeting. Gandhi Ji understood the Congress culture
very well, which is why he wanted the Congress disbanded, Modi wrote in a blog.
Modi quoted Gandhi ji as saying that Congress leaders were only busy making
communal adjustments. In 1937 itself the father of the Nation said: I would go
to the length of giving the whole Congress a decent burial, rather than put up
with the corruption that is rampant. Modi said Bapu spoke about detachment and
staying away from excess wealth. However, all that Congress has done is to fill
their own bank accounts and lead luxurious lifestyles at the cost of providing
basic necessities to the poor.
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RUSSIAN
ARMS EXPORTS TO INDIA FALL 42% BETWEEN 2014-18 AND 2009-13: SIPRI
Russia’s arms export to India fell 42%
between 2014-18 and 2009-2013, according to a report by the Stockholm
International Peace Research Institute (SIPRI). In the same period, India’s
arms imports decreased 24%, which was partly attributed to delays in deliveries
of arms produced under license from foreign suppliers, such as combat aircraft
ordered from Russia in 2001 and submarines ordered from France in 2008. Still,
India was the world’s second largest importer of major arms in 2014-18.
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INDIA'S
ENGINEERS STRUGGLE FOR WORK AS JOB CRISIS WORSENS
Santosh Gurav gained a bachelor's degree in
technology from a mid-tier college in western India last year, specialising in
electrical engineering and hoping to land a job in industrial automation. Six
months on, the 27-year-old repairs mixer-grinders, table fans and other
household appliances at a cramped shop in the western city of Pune. On better
days, he picks up broken LED lights from scrap dealers, fixes them, then sells
them. He earns about $50 a month, just enough to cover the rent for the room he
shares with two others as his home. I haven't even started repaying my
education loan, said Gurav, referring to the nearly $4,000 he'd borrowed for
his undergraduate study. He is one of hundreds of thousands of engineers -
studying everything from computer code to civil engineering - that India's
education system churns out each year, many with large loans and little
prospect of finding a job in their field. They highlight Prime Minister
Narendra Modi's difficulty in fulfilling a promise he made weeks after coming
to power in 2014: creating millions of jobs by boosting manufacturing under a
flagship 'Make in India' project launched with much fanfare. Modi said in his
maiden Independence Day speech as prime minister, pledging to create up to 100
million new jobs by 2022. India's unemployment rate rose to 7.2 per cent last
month, up from 5.9 per cent in February 2018, according to data compiled by the
Centre for Monitoring Indian Economy (CMIE) think tank. The figures are more
recent than government data and many economists regard them as more credible.
The data, which is an estimate based on household surveys, shows 31.2 million
people were actively looking for jobs in February this year, said Mahesh Vyas,
the CMIE managing director. It did not have a breakup for engineering or
technology graduates. The increasing use of automation in industry, the massive
number of young Indians coming onto the job market, and the regulatory hurdles
that companies still face if they want to set up shop in India, are all big
issues for those without work. Jobless engineers are not a new problem and
miniscule in comparison to the millions of farmers dissatisfied over weak crop
prices, said Himanshu. Still, they represent a lot of untapped potential.
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KARNATAKA:
SC UPHOLDS STAY ON USE OF SECONDARY TREATED WASTEWATER
The Supreme Court on Monday refused to lift
the stay on use of secondary treated wastewater for recharge of groundwater in
two districts of Karnataka. The apex court had earlier barred the use of
secondary treated water from municipal waste and factory discharge after
reports of foaming and pollution appeared in Bangalore's Bellandur lake and
other lakes. Upholding the stay, the three-judge bench headed by Chief Justice
of India Ranjan Gogoi and also comprising Justice Deepak Gupta and Justice
Sanjiv Khanna asked the Karnataka government to file fresh applications with
data backing up the claim. A petition filed before the apex court claimed that
this water has heavy metals and toxic chemicals and using this water for agriculture
and groundwater recharge will destroy crops and the environment. The state of
Karnataka in its application has claimed that water is now being treated before
discharge and treated water does not have these chemicals and state should be
allowed to release the water.
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INDIA WAS
GRANTED PERMISSION TO WEAR CAPS IN MEMORY OF FALLEN SOLDIERS: ICC
The International Cricket Council (ICC)
Monday said India was granted permission to wear camouflage military caps in
the third ODI against Australia as a tribute to the country's armed forces, a
gesture which Pakistan has objected to. In the third ODI in Ranchi on March 8,
the Indian team sported military caps as a mark of respect to the CRPF
personnel who were killed in the Pulwama terror attack and donated its match
fee to the National Defence Fund. The BCCI sought permission from the ICC to
wear the caps as part of a fundraising drive and in memory of fallen soldiers
who have died, which was granted, ICC's General Manager Strategic
Communications Claire Furlong said in a statement. The Pakistan Cricket Board
had sent a strongly-worded letter to the ICC, calling for action against India
for wearing the caps. They took permission from ICC for some other purpose and
used it to do something else, which is not acceptable, PCB Chairman Ehsan Mani
said on Sunday in Karachi.
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GOOGLE
PAID FORMER EXEC $35 MN AFTER HARASSMENT CLAIM
Court documents show Google paid former
search executive Amit Singhal USD 35 million in an exit package when the exec
was reportedly forced to resign after a sexual assault investigation. Details
of the exit package were revealed as part of a shareholder lawsuit against the
company, one that followed a published report of payouts Google made to
executives accused of sexual misconduct. Previously redacted portions of the
lawsuit complaint were made available Monday, including quotes from board
committee meetings. One portion of the minutes showed that Singhal received two
USD 15 million payments and a payment of at least USD 5 million as part of a
separation agreement. He left the company in 2016. Google says that it has made
changes recently to take a hard line against sexual misconduct.
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TWITTER'S
'ADS TRANSPARENCY CENTRE' FOR INDIA GOES LIVE
Ahead of general elections, micro-blogging
platform Twitter Monday went live with its 'Ads Transparency Centre' for India,
that would allow people to view details of political advertisements in the
country, including advertiser spends and impressions data. Twitter had last
month announced that it would provide details including advertising spends and
impressions data of tweets from political entities to users in India, as it
sought to bring in greater transparency on its platform by tightening norms for
political advertisements. Twitter, in its blogpost on February 19, had said
enforcement of this policy would begin in the week starting March 11 in
specific countries including India, after which only certified advertisers will
be allowed to run political campaigning advertisements on its platform.
Accordingly, the Ads Transparency Center (ATC) for India went live Monday, with
a search feature that allows people to see who is advertising political content
on Twitter, the ad spends and targeting demographics. With ensuing general
elections, the Indian government had warned social media platforms of strong
action if any attempt was made to influence the country's electoral process through
undesirable means. Over the past few months, social media players like
Facebook, Twitter, and Google have promised to infuse more transparency into
political advertisements on their platform, and have since lined up a slew of
measures as part of election integrity efforts.
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SOLAR
POWER CAPACITY ADDITION HINGES ON ENABLING POLICY STANCE: CRISIL
Projecting solar power capacity addition of
48-50 GW between fiscal 2019 and 2023, rating agency Crisil says developer
sentiment has been negatively impacted by the lack of clarity on several policy
issues and arbitrary bid cancellations. This is contrary to a supportive policy
stance from the government. Over fiscals 2017 to 2019, while previously
tendered capacities continued to be commissioned apace, certain risks to future
project implementation had manifested. There were frequent bid cancellations,
lack of clarity on GST procedures, and cost pressure from the imposition of
safeguard duty on imported cells/ modules. In a statement, Crisil states that
while GST clarity was lacking for over a year, with a final decision taken by
the GST Council in December, it ended with an increase in taxation. Similarly,
the safeguard duty was a double whammy of sorts, impacting the cost of solar
power projects and not resulting in any significant offtake for the domestic
manufacturing sector. Besides, cancellation of bids post-auction, as state
utilities/ SECI found tariffs to be higher than expected, hampered progress.
Close to 4.7 GW was cancelled in this manner over March-December 2018. In such
a scenario, Crisil Research’s outlook factors in the prevailing market
dynamics, where regulatory/ policy support is itself emerging as a key risk.
The renewable energy domain is dependent on policy support and any uncertainty
on that front can have strong negative consequences. We continue to monitor the
same and remain aware of a possibility of upside to our call, once regulatory
risk is mitigated to an extent, Crisil stated. Further, adequate land
availability, timely implementation of grid infrastructure, and the ability of
players to raise low-cost funds will be crucial enablers.
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GOVT
OVERHAULS OIL, GAS EXPLORATION POLICY; NO PROFIT TO BE CHARGED ON OUTPUT IN
LESS EXPLORED AREAS
In a
major overhaul of oil and gas exploration permits, the government will not
charge any share of profit on hydrocarbons produced from less explored areas as
it looks to attract the elusive private and foreign investment to raise
domestic output. Breaking from the two-and-a-half decade-old practice of having
a uniform contractual regime for all sedimentary basins in the country, the new
policy provides for different rules for areas that already have producing
fields and ones where commercial production of oil and gas is yet to be
established. Irrespective of the basins, producers will get complete marketing
and pricing freedom for oil and gas in future bid rounds, said an official
notification detailing rule changes approved by the Union Cabinet on February
28. Oil and gas acreage or blocks in all future bid rounds will be awarded
primarily on the basis of exploration work commitment, it said. To expedite
production, concessional royalty rates will be applicable if production is
commenced within four years for onland and shallow water blocks, and five years
for deep water and Ultra-deepwater blocks from the effective date of the
contract, it said. Two years back, the BJP-government brought in Hydrocarbon
Exploration and Licensing Policy (HELP) that provided for blocks being awarded
to companies offering maximum revenue at different levels of prices and
production. HELP failed to either raise output or attract new players. To
incentivise additional gas production from Administered Price Mechanism (APM)
fields, reduction in royalty by 10 per cent of the applicable royalty will be
granted on the additional production over and above Business As Usual (BAU)
scenario. BAU scenario will be approved by DGH on third-party evaluation, it
said.
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US SET TO
BECOME NET EXPORTER OF OIL: INTERNATIONAL ENERGY AGENCY
Crude production is set to continue expanding
in the United States thanks to shale oil, with the country becoming a net exporter
from 2021, a development which should reinforce global energy security, the
International Energy Agency (IEA) said on Monday. The second wave of the US
shale revolution is coming, Fatih Birol, the executive director of the
International Energy Agency, said in a statement. New technology that allows
for extracting oil and gas from shale rock formations has led to a boom in oil
production in the United States in recent years. With low production costs,
that boom is set to continue. The IEA forecasts the United States will account
for two-thirds of the increase in global oil production and some three-quarters
of the expansion of liquefied natural gas (LNG) over the next five years. This
will help the United States surpass Russia and nip at the heels of Saudi Arabia
as the world's top exporter. Production outside the OPEC oil cartel is set to
continue rising, according to the IEA, which sees it climbing by 6.1 million
barrels per day (mbd) to 68.7 mbd in 2024. In addition to the United States,
both Brazil and Norway are expected to increase output. Meanwhile, OPEC output
is expected to dip in 2019 and 2020, before resuming modest growth to 32 mbd in
2024.
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LAURUS
GETS USFDA NOD FOR DRUG THAT TREATS MALARIA, AUTO-IMMUNE DISEASE
Hyderabad-based Laurus Labs Limited said
announced on Monday that it has received a final approval from the US Food and
Drug Administration(US FDA) for Hydroxychloroquine tablets 200 mg, which is
used for treatment of certain types of Malaria. This medication is also used,
usually with other medications, to treat certain auto-immune diseases (lupus,
rheumatoid arthritis) when other medications have not worked or cannot be used.
The drug is a therapeutic equivalent of Plaquenil tablets of Concordia
Pharmaceuticals, Inc. In another development, the company also received a
tentative approval for an abbreviated new drug application (ANDA) for Abacavir,
Dolutegravir and Lamivudine Tablets of 600 mg/50 mg/ 300 mg from the US FDA.
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US AGENTS
FAKED TRAIL TO INFILTRATE AS LET RECRUITS
US intelligence agents laid a cyber trail all
the way to a fake terror camp in Pakistan, mastered idioms and style of Islamic
terrorists giving a convincing portrayal of jihadis in a bid to infiltrate a
Lashkar-e-Taiba (LeT) recruitment ring. In what seemed to read like a
spy-thriller their strategy led to the arrest of an American teenager, who was
at the centre of an alleged conspiracy to recruit fighters for the Pakistan-based
LeT, and a suspected co-conspirator, who was stopped on his way to join the
terrorist group. The transcripts of their cyber interactions in court documents
give chilling insights into the raging hate of the world of jihadis. The cases
against the two, who were arrested, point to a disturbing trend that with the
collapse of the Islamic State (IS) in Syria and Iraq, Pakistan-based terror
organisations operating against India may become an attractive alternative for
aspiring jihadis. Michael Kyle Sewell, the teenaged recruiter, told Jesus
Wilfredo Encarnacion, 29, whom he was guiding that he should not join the IS
because IS had no territory, instead he suggested the LeT and the Taliban as
worth joining. The LeT was a well-funded group in Pakistan operating in
Kashmir, Afghanistan and India, is what he said according to court filings.
Both men were arrested in February and now face trial on terrorism-related
charges.
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WHITE
HOUSE DEFENDS TRUMP, SAYS 'ABSURD' TO CALL PREZ UNRELIABLE NEGOTIATOR
The White House said on Monday it was absurd
to suggest that President Donald Trump was an unreliable negotiator as China
reportedly balks at a summit with President Xi Jinping over concerns Trump
would walk away from a trade deal. Washington and Beijing are still in
negotiations and no date has been set for a summit, White House spokeswoman
Sarah Sanders told reporters. The two leaders had been expected to meet at
Trump's Mar-a-Lago property in Florida at the end of March to finalize a pact
that would end a months-long trade war. But US officials have said more work
remains to be done. The White House is demanding that China make structural
reforms, including how it treats US intellectual property and forces US companies
to share their technology when doing business in China. Those sticking points
have been difficult to overcome, despite progress on other issues, including
currency. We'll see what happens with North Korea the same way we're going to
see what happens in the negotiations with China. They're ongoing, she said. The
president's going to make sure whatever deal we get is in our best interest,
that it's fair and reciprocal trade, that it protects our intellectual
property, and that it actually has safeguards to make sure that the Chinese
follow through with whatever commitments that they make, she said. The two
sides set the next steps in working arrangements, Xinhua added, without giving
details.
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CHINA, US
REACHED CONSENSUS ON MANY KEY CURRENCY EXCHANGE RATE ISSUES, SAYS OFFICIAL
Chinese and US officials discussed exchange
rates and reached a consensus on many important issues during the latest round
of negotiations to end the trade war, Governor of the China’s central bank Yi
Gang said on Sunday. Top trade officials from America and China are holding
talks to negotiate a comprehensive trade deal during the last few months to end
a trade war in which the world’s two largest economies are locked in since last
year. Trump is demanding China to reduce the USD 375-billion trade deficit,
provide legal protection for intellectual property rights (IPR), technology
transfer and more access for American goods to Chinese markets. He has imposed
tariff hikes on USD 250 billion of Chinese goods and threatened to extend
tariffs on USD 200 billion Chinese imports to 25 per cent. In response, China,
the world’s second largest economy after the US, imposed tit-for-tat tariffs on
USD 110 billion of American goods. Successive US Presidents, including Trump,
have accused China of manipulating its currency RMB or Yuan to make its exports
more competitive. But Washington, so far, avoided declaring Beijing a currency
manipulator. The two parties discussed about how to respect the autonomy of each
other’s monetary authorities in determining the monetary policy, Yi told. The
discussion also involved mutual adherence to the market-decided exchange rate
mechanism, honouring the commitments made at previous G20 summits such as
choosing not to adopt competitive depreciation, not to use exchange rates for
competition purpose, and maintaining close communication on foreign exchange
markets, Yi said. They also discussed the issue that both sides should commit
to disclose data in accordance with the statistics transparency standard of the
International Monetary Fund, he said.
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US CLAIM
NOT CORRECT, GAVE REASONABLE ACCESS: INDIA
India said it had gone the distance to resolve
trade issues with the US by offering easier norms for American dairy imports
and trade margins for medical devices and yet Washington decided to terminate
preferential benefits to Indian exports. Rejecting the US claim that it
scrapped the Generalized System of Preferences (GSP) scheme for India due to
lack of reasonable market access the government also said the move was
incorrect. Prima facie, the grounds on which the US has taken this action are
incorrect, a senior government official said. We had gone more than half the
distance in the trade package. Since the package was hinging on GSP, there is
no package now, the official said, adding that the government is yet to decide
the framework of its future talks with the US. The government rejected the US
stance on three counts. US exports to India increased 28% in 2018 and its trade
deficit reduced 7% when its total deficit and that with China had widened.
India said the US claim is also wrong because companies such as Uber, Google,
PepsiCo and others are not only thriving here, but are market leaders in their
respective segments. India’s medical device industry is dominated by US
companies. We are still in the category of eligible beneficiary developing
countries, the official said. As per the US Trade Act, the other set of
eligible countries are categorised as Least Developed Beneficiary Developing
Country.
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CHINA'S
GDP GROWTH PACE WAS INFLATED FOR NINE YEARS, STUDY FINDS
China over-reported its economic growth
between 2008 and 2016 by an average of 1.7 percentage point according to a
recent study. The discrepancy came from local governments who are rewarded for
meeting growth and investment targets, the authors say. The Beijing-based
National Bureau of Statistics, knowing such manipulation well, has been
adjusting the local numbers but hasn’t done so sufficiently since 2008, authors
Wei Chen, Xilu Chen, Chang-Tai Hsieh and Zheng Song wrote. Local statistics
increasingly misrepresent the true numbers after 2008, but there was no
corresponding change in the adjustment made by the NBS, they wrote. They
instead use numbers such as tax revenue, satellite night lights, electricity
consumption, railway cargo flow, exports and imports -- less likely to be
fudged, to predict the actual gross domestic product of the world’s second
largest economy. The revised numbers indicate that the slowdown in Chinese
growth since 2008 is more severe than suggested by the official statistics,
they wrote. China’s GDP has long been criticized for either over- or
under-estimating growth, or for smoothing out the fluctuations in real economic
activities. Local authorities, eager to achieve economic growth goals so as to
improve their own chances of promotion, used to report regional GDP figures
that when summed would be more than 10 percent larger than the official
national figure. The national authority has cracked down on fudging statistics
by collecting data directly from firms, naming and shaming officials as well as
setting up a specific inspection arm. The head of the statistics bureau claimed
last year that the problems were all in the past, and from 2019, it will start
to compute GDP for the 31 domestic regions.
#For Source of Information copy and paste the heading in google.
Thanks & Regards,
CS Meetesh Shiroya
Thanks & Regards,
CS Meetesh Shiroya
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