INCORPORATION/CONVERSION INTO LLPS WITH BUSINESS/
MANUFACTURING AND ALLIED ACTIVITIES
The Institute of Companies
Secretaries of India (ICSI) in a letter addressed to Secretary, Ministry of
Corporate Affairs (MCA) has advocated on the eligibility of Manufacturing
Businesses to form an LLP According to the ICSI, the genesis of LLP law and the
recommendation of J.J. Irani Committee in 2005 do not seem to restrict
manufacturing entities as LLP. Quoting lengthy justification for manufacturing
enterprises to be eligible to form an LLP, the ICSI has submitted that the
position of Manufacturing Sector needs clarification and allowed to register as
a Limited Liability Partnership under the Limited Liability Partnership Act,
2008. Also, the ICSI has suggested that in case there is an apprehension that
manufacturing businesses incorporated as LLPs would become very large and
therefore not suitable as an LLP entity, a threshold limit on share capital or
turnover may be considered as in the case of One Person Companies and small
companies. Earlier, the Central Registration Centre (CRC) of MCA in an Office
Memorandum has mandated that business activities to be carried out by the
Limited Liability Partnerships (LLPs) to exclude manufacturing and allied
activities. It was stated that LLPs as body corporates have been set up for the
purpose of carrying out business activities related to service sector. In
December 2018, this issue came for consideration in the Review Workshop on
Enforcement chaired by the Secretary, MCA. As per the minutes of the workshop,
it was stated that the object of LLP is mainly for professional services and
not manufacturing activities It was also stated that conversion of company
doing manufacturing activity into LLP should not be allowed. The CRC has stated
that in view of the definition of Business as defined in section 2(1)(e) of the
LLP Act, 2008 include trading, profession, service and occupation and
manufacturing & allied activities have been positively excluded from the
definition. In view of the above, the Registrar of Companies, CRC has
instructed all its officers to not to allow incorporation of LLPs or conversion
into LLPs with the proposed business activities including manufacturing and
allied activities.
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BSE TO INITIATE ACTIONS AGAINST LISTED COMPANIES FOR
NON-PAYMENT OF OUTSTANDING ANNUAL LISTING FEES
BSE to initiate actions
against listed companies for non-payment of outstanding Annual Listing Fees
(ALF) for the financial year 2018-19 on or before April 13, 2019. The Exchange
has decided to proceed and to initiate the actions against the defaulting
company, including the name of the defaulting company would be displayed on the
Exchange’s website on a separate page, and its stock reach page on the website
of the Exchange would be shown in RED color and a ticker would be flashed continuously
across the screen stating, This company has not paid the Annual Listing Fees to
the Exchange in violation of SEBI (LODR) Regulations and Rules, Bye-laws and
Regulations of the Exchange. Further, the trading in the equity shares of the
defaulting company will be moved to a CALL AUCTION basis w.e.f. May 15, 2019 if
the defaulting company fails to pay the outstanding ALF. BSE has also
enumerated actions, if the Company failed to pay the Annual Listing Fees by 1st
July, 2019, 31st July, 2019, November 01, 2019, and February 01, 2020. Further,
the Exchange reserves its right to initiate appropriate proceedings against
listed companies that have failed to make pay the outstanding ALF.
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SUPREME COURT HALTS ARCELORMITTAL’S PAYMENT FOR ESSAR STEEL
The Supreme Court has stopped
ArcelorMittal from making a payment to lenders to buy Essar Steel India Ltd.,
extending billionaire Lakshmi Mittal’s wait to enter the South Asian country’s
steel market. The Supreme Court’s two-judge bench headed by Justice Rohinton F.
Nariman said status quo is to be maintained regarding Arcelor’s plan to buy
Essar Steel. The court directed the bankruptcy appellate tribunal to
expeditiously decide on appeals in the case. The Supreme Court has stopped
ArcelorMittal from making a payment to lenders to buy Essar Steel India Ltd.,
extending billionaire Lakshmi Mittal’s wait to enter the South Asian country’s
steel market. A bankruptcy court overseeing the sale had asked a panel of
lenders to consider higher payment to Standard Chartered, which said a
substantial part of its 35 billion rupees ($505 million) dues would remain
unpaid under Arcelor’s plan for the distribution of money among lenders. Still,
the panel of lenders stuck with its earlier decision and the State Bank of
India also challenged the direction in the top court.
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BANKRUPTCY DELAYS RAISING BIDDERS' FUNDING COSTS: JSW STEEL
Delays in the sale of
assets under India’s bankruptcy law are becoming a key challenge for bidders
who cannot wait indefinitely because of funding constraints, according to JSW
Steel Ltd. The Sajjan Jindal-run mill, which has bid for many companies under
the insolvency law since sales of distressed firms began in 2017, is among
bidders who have faced repeated delays in their attempts to buy indebted
assets. A bidder has to tie up the capital for investing in an asset when
submitting a resolution plan and it is not possible for any company, big or
small, to keep the funding ready forever, said Seshagiri Rao, joint managing
director of the steel mill. When I tie up the funding, I am incurring a cost,
Rao said. That cost can’t be incurred indefinitely with so many uncertainties.
Since the Insolvency and Bankruptcy Code was passed in the Indian parliament in
2016, the resolution process has been slowed as courts are inundated with
appeals from founders, administrators, lenders and bidders. Lenders to the
first 12 companies brought to the insolvency court have lost out on 40 billion
rupees ($580 million) in additional income due to delays in the resolution
process beyond the time mandated by law, according to rating company ICRA. JSW
took over Monnet Ispat & Energy Ltd. in July after multiple company law
tribunal hearings despite being the only bidder for the asset. It has also
emerged as the sole bidder for another stressed steel products maker Asian
Colour Coated Ispat Ltd., but the lenders and the professional in charge of the
sale process have reportedly sought an extension of the deadline for submission
of bids. It is surprising to us that the date for submission of resolution
plans was extended several times, said Rao. We are not able to understand that
when there is a valid resolution plan, what is the need for seeking extension?
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SUPREME COURT RESERVES ORDER ON PLEA AGAINST SINGH BROTHERS
The Supreme Court on
Thursday reserved its order on a contempt plea filed by Japanese pharma company
Daiichi Sankyo against the Ranbaxy's Singh brothers over non-payment of Rs
3,500 crore in an international arbitration award. The bench headed by Chief
Justice Ranjan Gogoi said it will decide on the issue of 'contempt of court'
only. Fali Nariman appearing for Daiichi told the SC that former Ranbaxy
promoter Malvinder Singh had given an undertaking in the Delhi High Court that
the value of their unencumbered assets was Rs 452 crore. Nariman said the Delhi
HC-appointed valuer had prepared two reports. Counsel for Malvinder Singh told
the court that the enforcement proceedings against them are still pending
before the HC, and that all the bank accounts have already been frozen by the
court. His counsel said it is a civil contempt case, and Malvinder hasn't
violated any court order. Shivinder Singh, brother of Malvinder, through his
counsel, told the court the current contempt emerges for not following an interim
order. During the hearing, Malvinder presenting his point regarding the
allegations of violating restraint on dealing with Fortis shares, said: I
didn't violate restraint on dealing with Fortis' shares, Indiabulls did that.
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NCLT LETS SREI INFRA FINANCE RECALL STERLING SEZ CASE
The dedicated bankruptcy
court has allowed the withdrawal of insolvency plea filed by Srei
Infrastructure Finance against Sterling SEZ & Infrastructure, a firm owned
by brothers Nitin and Chetan Sandesara, now fugitives from Indian law and
believed to be abroad. Gujarat-based Sterling SEZ is a subsidiary of Sterling
Group that owes over Rs 8,100 crore to its financial and operational lenders. Promoters
of the group are alleged to be absconders and the case is pending in the Delhi
court to declare them Fugitive Economic Offenders. On Wednesday, in the case of
Sterling SEZ & Infrastructure, the NCLT allowed the withdrawal of the
Corporate Insolvency Resolution Process (CIRP) in the matter of Sterling SEZ as
approved by over 92% of the creditors. The tribunal is of the view that since more
90 % of the lenders have approved the withdrawal process, it is a fit case for
withdrawal, said Mumbai bench of NCLT presided over by Bhaskara Pantula Mohan
and V. Nallasenapathy. However, since the company promoters are absconding, the
RP has been appointed as administrator of the company as an interim measure,
said the tribunal in an oral order.
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ALLOW IHH HEALTHCARE TO MAKE AN OPEN OFFER: FORTIS PLEA IN
SUPREME COURT
Fortis Hospitals Limited
on Thursday approached the Supreme Court urging it to allow Malaysia's IHH
Healthcare to make an open offer to shareholders for purchase of Fortis shares,
in line with norms of the Securities and Exchange Board of India (SEBI). In its
pleadings before the top court on Thursday, Fortis said that the open offer was
the right of the shareholders and that should not be undermined especially
since the former promoters of Fortis Healthcare, Shivinder Mohan Singh and
Malvinder Mohan Singh no longer held a controlling stake in the company. The
open offer would have been triggered after IHH Healthcare bought a 31.1% stake
in Fortis Healthcare for Rs 4,000 crore on November 13. IHH had planned to buy
an additional 26 per cent stake from public shareholders. The said open offer
was scheduled to be made on December 18. Four days before the open offer could
be triggered, the top court asked all parties to maintain a status quo with respect
to the sale of Fortis Healthcare’s stake to IHH Healthcare. The top court’s
order came on a plea moved by Daiichi Sankyo, which alleged that the Singh
brothers and Indiabulls had created fresh encumbrances for around 17 lakh of
the total 23 lakh shares of Fortis despite the apex court forbidding it. A
three-judge Bench headed by Chief Justice Ranjan Gogoi on Thursday heard a
contempt petition by Japanese drug-maker Daiichi Sankyo. While Daiichi alleged
that the brothers had violated orders of the top court and hence were in
contempt, the elder brother Malvinder Mohan Singh's counsel Senior Advocate
Dushyant Dave told the court that the real offender of the orders was
Indiabulls Real Estate Limited and its sister concern. Indiabulls and its
sister concern had, despite repeated letters, sold shares of Fortis, kept in a
depository account in spite of being told that it would amount to contempt of
top court’s orders, Dave said. The company, however, contested this plea and
said that the shares were sold after the court's permission. The three-judge
bench heard all the parties at length and reserved its verdict on the contempt
plea moved by Daiichi. The Japanese drug-maker is fighting a prolonged battle
for enforcement of its Rs 3500 crore decree that it obtained from a Singapore
tribunal. The tribunal had held that the brothers had, while selling their
stake in Ranbaxy to Daiichi in 2008, hidden information regarding a probe the
company was facing from the US Food and Drug Administration and the Department of
Justice. To resolve the potential civil and criminal liability that could have
arisen due to the suit by both the US agencies, Daiichi had agreed to pay $500
million as a part of the settlement agreement. Daiichi had later sold its stake
in Ranbaxy to Sun Pharmaceutical Industries in 2015 for a sum of Rs 22,679
crore.
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WHAT IF YOU GO BROKE LIKE VIJAY MALLYA? PERSONAL BANKRUPTCY
DECODED
Did you know you can file
for bankruptcy if your debt exceeds Rs 500? Yes, you heard it right. Under
current laws, an insolvency petition can be filed either by the debtor or the
creditor for an amount exceeding as little as Rs 500 While bankruptcy filing
process for corporate entities is well-organised under the Insolvency and
Bankruptcy Code, 2016 (IBC), it is not as streamlined for the Individuals as of
now. The IBC does contain a chapter relating to insolvency and bankruptcy
process for individuals and partnership firms, but the rules for individual
bankruptcy are yet to be notified. So, till the time new rules are notified, we
have the Presidency Towns Insolvency Act of 1902 and the Provincial Insolvency
Act of 1920 to deal with individual bankruptcy cases. Both the Presidency Towns
Insolvency Act, 1909 and Provincial Insolvency Act, 1920 provide for the legal
framework in relation to insolvency process for individuals. Although Section
243 of the Insolvency and Bankruptcy Code, 2016 provides for repeal of current
insolvency laws, the said Section has not yet been notified, says Dipankar
Bandyopadhyay.
Existing mechanisms
Presidency Towns
Insolvency Act, 1909: Under this Act, the High Courts of Bombay, Calcutta and
Madras have been conferred the jurisdiction to try insolvency cases. Provincial
Insolvency Act, 1920: Those living in India other than Mumbai, Kolkata or
Chennai are governed by Provincial Insolvency Act. However, the provisions of
both the Acts are similar.
Conditions for filing
bankruptcy
Currently, an insolvency
petition can be filed for an amount exceeding Rs 500. However, the act of
insolvency on which the petition is grounded has to occur within 3 months of
filing the petition. On analysis of case laws, it has been found that the court
shall not entertain a petition for insolvency against an individual filed by a
creditor unless he proves certain crucial conditions — that he is a creditor to
the debtor, that there exists a legally enforceable ascertained debt between
him and the debtor, and that the debtor has committed an act of insolvency as
suggested under the Act, Bandyopadhyay explains.
The process
After analysing if the
conditions for filing of bankruptcy have been met, the court may accept or
reject the petition. Once a petition is accepted, here’s what will follow:
Hearing and interim
receiver
After you file the
petition, a date of hearing is fixed and the court appoints an interim
receiver. The interim receiver appointed by the court takes immediate
possession of the property of the debtor. Such Interim receiver continues to
function till a regular receiver is appointed, says Rachit Sharma.
Adjudication
On the date of hearing,
the court — if it is satisfied that the petition is reasonable — shall make an
'order of adjudication'. After the passing of this order, the debtor becomes an
'undischarged insolvent'. Following the adjudication, the property of the
debtor will be vested with an 'Official Assignee' under the Presidency Towns
Insolvency Act and 'Official Receiver' under the Provincial Insolvency Act,
appointed by the court to conduct insolvency proceedings, Sharma added.
Distribution of sales
proceeds
Hereafter, it is the
Official Assignee's duty to sell off the insolvent’s property within a
reasonable time. Money recovered in the form of sale proceeds is distributed
among the creditors.
Certification of absolute
discharge
According to Sharma, Once
the process of distribution is completed, the insolvent is required to collect
a certificate of 'absolute discharge' which is granted only when it is proved
that the insolvency resulted due to misfortune and not because of any dishonest
or unscrupulous behaviour. Besides, the behaviour of the debtor during the
insolvency proceedings is also taken into consideration. On the award of
'absolute discharge certificate', the remaining, unpaid debts of the debtor are
cancelled and he cannot be forced or threatened by any creditor to repay the
debt amount.
Can courts refuse the
insolvent a discharge?
Yes, they can. Section 39
of the insolvency act prescribes grounds on which discharge can be refused.
Vineet Naik, says, There are no specified grounds for discharge as it is based
on the discretion of the court, which has to arrive at a finding by taking into
consideration all relevant factors. Firstly, if the insolvent commits any
offence set out under Section 421 to 424 of IPC or any offence under the
Insolvency Act, then the discharge can be refused. However, a discharge may be
granted if the insolvent consents to decree against him whereby he agrees to
pay the balance part of his proven debt from his future earnings or
after-acquired property.
Will filing for bankruptcy
discharge you from all your debts?
No, filing for bankruptcy
won’t discharge an insolvent from all his debts. Even after the order of
discharge, an individual would be liable for providing maintenance to his wife
under the order of maintenance made u/s 488 of CrPc. Further, the order of
discharge does not exempt an individual from paying of any debt due to
government, any debt or liability incurred by means of any fraud or fraudulent
breach of trust and debt or liability in respect of which he has obtained
forbearance by any fraud, says Sharma. While passing an order for discharge,
the court takes into consideration the objections filed, if any, by the
creditor or the report of the receiver, where a receiver has been appointed,
Additionally, where a debtor is said have committed any offence set out under
Section 69 of PIA, he shall be punishable on conviction with imprisonment which
may extend to one year, Bandyopadhyay further added.
Is the insolvent entitled
to maintenance?
No. As a matter of right,
the insolvent is not entitled to maintenance. However, it is a discretionary
relief that varies from case to case. On perusal of Provincial Insolvency Act
(PIA) it was found that, no specific provision in relation to debtors’
entitlement to receive any maintenance amount was found. However, provisions of
Section 60 (Special Provisions in regard to Immovable Property) of PIA as
amended for the state of Haryana and Punjab provides an exemption from
alienating the portion of land by the receiver pursuant to a court order,
having regard to the income of the debtor from all sources except such income
as is dependent on the will of another person, is sufficient to provide for the
maintenance of the insolvent and the members of his family who are dependent on
him, and such portion shall be deemed not to form part of the estate under
administration, says Bandyopadhyay.
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SEBI ISSUES GUIDELINES FOR BOOSTING RISK MANAGEMENT IN THE MF
INDUSTRY
The Securities and
Exchange Board of India (Sebi) on Thursday issued two circulars aimed at
boosting the risk management systems in the Rs 24-trillion mutual fund (MF)
industry. The regulator directed asset management companies (AMCs) to
constitute a technology committee to review the cyber security and resilience
framework of the MF industry. Sebi said that the tech committee should have at
least one independent external expert with experience in the area of technology
in the MF and financial industry. With rapid technological advancement in
securities market, technology is playing a very important role in asset
management business and have a major impact on the various processes and
controls designed and implemented by AMCs. The role of technology related
aspects has become even more critical in managing risks related to asset
management business, Sebi said in a circular. In a separate circular, the regulator
issued revised guidelines on a system audit framework for MFs. The framework
includes an audit of the fund accounting system for the calculation of net
asset values (NAVs), financial accounting and reporting system, funds flow
process, system processes for meeting regulatory requirements, among other
things. According to the guidelines, fund houses will have to get a systems'
audit done by an independent auditor every year.
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SREI INFRA CLARIFIES ON ACQUISITION BID FOR ESSEL MUTUAL FUND
Srei Infrastructure
Finance on Thursday clarified that its subsidiary Srei Mutual Fund Asset
Management (AMC), has been exploring opportunities for acquisition of mutual
fund and consequently on March 22, 2019 it has entered into a preliminary
non-binding term sheet for acquisition of Essel Mutual Fund, subject to all
applicable regulatory and government approval, including SEBI. The said term
sheet is subject to execution of definite agreements and other ancillary
documents as may be required depending upon the outcome of due diligence being
carried on by the AMC. Keeping in view that the proposed transaction is not
definite at this juncture, the disclosure under SEBI regulations is not
required to be made, the statement said.
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SC DENIES ANY RELIEF TO EX-IFIN CEO RAMESH BAWA
The Serious Fraud
Investigation Office, which is probing the IL&FS matter, has issued summons
to several fomer senior executives of IL&FS, including Bawa. A bench headed
by Chief Justice Ranjan Gogoi told Bawa's lawyer Mukul Rohtagi We are sorry to
deny you any relief in the matter. Petition to be dismissed. Rohtagi said that
Bawa fears of his arrest in the case, as SFIO proceedings under Companies Act
is completely illegal. The agency accused Sankaran of granting loans to
entities that were not creditworthy or had declared Non-Performing Assets
(NPAs), which caused huge losses to the company and its creditors.
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SEBI TO SEEK DETAILS FROM MUTUAL FUNDS WITH SCHEMES LINKED TO
ZEE GROUP
The Securities and
Exchange Board of India (Sebi) will ask Kotak Mutual Fund and HDFC Mutual Fund
for details on their decision-making process and the applicability of the
guideline with regard to repaying those who invested in their schemes that had
an exposure to the Essel group. The regulator is examining the different
approaches taken by the two large fund houses with regard to repayment. Kotak
MF has repaid investors in its eight fixed-maturity plans (FMPs) but has held
back portions of the assets exposed to the Essel group. HDFC MF, on the other
hand, had extended the maturity of one of its FMPs by 380 days. Sources
familiar with the developments said the regulator had asked for an update on
the meetings and discussions between the promoters of the Essel group and the
committee of lenders since the two inked the so-called standstill agreement.
Over 60 FMPs have an exposure to Essel group entities. The spotlight is on
those that are due for maturity before September 30, when the standstill
agreement ends. Sebi is examining the legal tenability of the approach taken by
fund houses. The regulator wants to know if fund houses can do more to safeguard
investors, said a source privy to the development. According to him, asset
management companies have cited Sebi’s 2012 circular on handling toxic assets
and recent side-pocketing norms behind their move. The market regulator,
however, is probing whether the provisions have been followed.
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KOTAK MF SAYS WORKING WITH ESSEL GROUP FOR 'OPTIMAL RECOVERY'
OF DUES
Kotak Mutual Fund said
that it was working with the promoters of Essel Group to ensure optimal
recovery of dues owed by the conglomerate. Kotak MF said its exposure to Essel
Group remained in six fixed maturity plans (FMPs) and in Kotak Credit Risk Fund
to an extent of 0.37% of its assets under management. While we regret that we
had to withhold certain part of units in 6 FMPs viz. Series 127, 183, 187, 189,
193, 194, represented by portfolio investment in Essel Group companies for now,
we believe that our actions are in the interest of our unitholders, Kotak MF
said in a statement to investors. Investors have been worried about the safety
of their investments in Kotak MF schemes after the company failed to repay some
of its fixed maturity plans on time and rolled them over after prices of
pledged shares of Zee Entertainment Enterprise Ltd crashed.
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IL&FS MESS: INDIA'S SHADOW BANKS RUN OUT OF OPTIONS, SELL
BONDS TO PUBLIC
Faced with high borrowing
costs and a sustained shortage of liquidity in India’s money markets, shadow
banks are increasingly pitching bonds with high coupon rates to the public, who
may not be aware of the risks they’re taking on. Still roiling from the shock
of defaults at Infrastructure Leasing & Financial Services Ltd., non-bank
financing companies are exploring this relatively expensive funding channel.
Mutual funds and institutional investors are still wary of lending to non-bank
financiers, and tighter market liquidity has weighed on company ratings, which
have deteriorated at the fastest pace in six years. Individual investors in
other markets have gotten burned. In Singapore, about 34,000 buyers of Hyflux
Ltd.’s debt stand to lose almost everything with the fate of the water and
power company in the balance. In the Indian market, a lot of companies are
selling public bonds with the purpose of building a retail base, said Ashish
Agarwal. The risks of these segments are obviously there and one must be
mindful while taking investment calls, said Karthik Srinivasan. Retail
investors may have been swayed by the potential returns on offer and haven’t
totally taken into consideration the risks involved, he said. Public corporate
bond issuance by NBFCs increased to 337 billion rupees ($4.87 billion) in the
April-to-January period, the highest for a fiscal year in at least a decade,
data from the securities regulator show. Volumes stand to increase for the year
ended March as final amounts raised from deals by three more shadow banks,
including L&T Finance Holdings Ltd. and Indiabulls Consumer Finance Ltd.,
are incorporated. Five non-bank lenders, including L&T Finance again and
Shriram City Union Finance Ltd., have come to the market so far in April. About
80 percent of L&T Finance’s base offering of 5 billion rupees has been
reserved for individual investors, according to the stock exchange.
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WHISTLE-BLOWER LETTER: DELOITTE FACES SFIO PROBE IN IL&FS
CASE
The Serious Fraud
Investigation Office (SFIO) has initiated investigations into a whistle-blower
complaint sent by a Deloitte employee and will summon its top officials for
questioning to find out whether the Infrastructure Leasing & Financial
Services (IL&FS) group’s auditor deliberately ignored several red flags in
the company's books, recommended creating complex structures, and in a quid pro
quo received high fees from the bankrupt company. A top SFIO official said the
probe agency had received a communication from a Deloitte Haskins & Sells
whistle-blower, but declined to comment further. A few Deloitte officials have
already been asked to join the enquiry, an SFIO source said, adding it was
aware of the audit shortcomings and was now looking into IL&FS books of the
last five years. The whistle-blower has sent the letter to other regulatory
bodies like the Reserve Bank of India, Securities and Exchange Board of India
(Sebi), and Ministry of Corporate Affairs. The letter has also been shared with
Grant Thornton, which is conducting a special audit of the IL&FS group. An
external spokesperson for Deloitte said: Deloitte takes issues such as these
seriously, and is conducting a review regarding the allegations. There are
several ongoing investigations. These agencies are in contact with us, being
the previous auditors. We will continue to provide full support to their
investigations. In the complaint, the whistle-blower alleged that Deloitte’s
senior leadership was aware of the financial mismanagement and impropriety of
the IL&FS group. Deloitte has audited the group over a period of 10 years
and has been an integral part of its unmitigated growth, benefitting in several
ways in terms of being a preferred advisor as well as favouring Deloitte by
awarding several advisory work on a single sourced basis with substantially
high fees, the whistle-blower said, and added that the person, a senior member
of the client team, had no faith in the current leadership of the auditing firm
and, hence, the letter had been sent to the regulators. The whistle-blower said
that in order to protect the auditor’s position the modus operandi was whenever
there were any dubious findings, Deloitte agreed to rely on the management’s
explanations and comfort letters. Internally several views in matters of audit
opinion were watered down by Deloitte leadership in the first instance. Over
years, this has led the entire audit susceptible to legacy positions and
compounded the financial mis-reporting. In many cases, the language of the
management response was agreed beforehand by Deloitte to close its internal
reviews, the communication said. As compensation, it was agreed that the
IL&FS group would remunerate Deloitte by way of consulting and advisory
fees and as a part of this arrangement, several crores worth of engagements
were given to the consulting division of Deloitte, a separate legal entity,
under the guise of strategic study for diversification. Deloitte charged a very
large sum of fees to recommend creating more complex financial services business
and grow its already stressed book. This was under the guidance of Udayan Sen
along with consulting partner Sanjoy Dutta, the letter said. In fact, Dutta had
been given the responsibility to manage the IL&FS account and earn Rs 20
crore as annual consulting fees, the letter said, adding that the
round-tripping of loans was evident in several cases but overlooked. As a
favour to both parties, Deloitte appointed senior tax advisor to IL&FS,
Dilip Lakhani at a very high salary for the services rendered to the IL&FS
group and to ensure that he would earn revenue for Deloitte.
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SEBI FINES RANKLIN SOLUTIONS RS 20 LAKH FOR PROVIDING FALSE
INFORMATION
Sebi Thursday imposed a fine
of Rs 20 lakh on Ranklin Solutions Ltd for providing false information to the
regulator with regard to transactions executed by its managing director. The
regulator had sent notice to the firm in May 2013 and sought information
regarding the transactions carried out by its managing director MJVVD Prakash.
The regulator had also sought clarifications from the brokers -- Bonanza
Portfolio Ltd and India Infoline Ltd -- for trading done in the account of
Prakash. From the replies, Sebi observed that Prakash had done several
transactions from his account and was aware of the transactions. It is
pertinent to take into account that submitting false information with respect
to the summonses has the potential to hamper and waylay the investigations and
thus compromises the regulatory framework, Sebi noted. Accordingly, the
Securities and Exchange Board of India (Sebi) imposed a fine of Rs 20 lakh on
Ranklin Solutions.
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SUBHASH CHANDRA REITERATES COMMITMENT TO REPAY ALL DEBTORS IN
FULL
The Essel group Thursday
affirmed its commitment to repay each debtor a day after two leading mutual
funds delayed repayment commitments to investors on their exposure to the
Subhash Chandra-led group. Kotak Mahindra Asset Management Company (AMC) and
HDFC AMC had Wednesday admitted to redemption pressures in their select fixed
income schemes and sought more time for payouts. The fund houses have an
exposure of around Rs 8,000 crore to various debt instruments of the group led
by Birla Sun Life AMC and HDFC AMC. While Kotak Mahindra AMC has reportedly
informed the investors of its six schemes that it may not be able to redeem the
entire amounts in multiple schemes, while HDFC AMC has rolled over one of its
schemes by as many as 380 days. As per the arrangement with the lenders, a
resolution for the repayment will be achieved by September 2019. The Essel
group is confident to complete the repayment towards each and every lender, the
group said in a statement late Thursday. We remain committed to achieve the
resolution by the mentioned timeline, with a sole objective of saving the loss
of public money and the repayment of each and every lender, the statement
added. It can be noted that while going public with his financial troubles,
group chairman Chandra had late January assured that he would repay lenders in
full. To prevent further value erosion, the lenders took the unprecedented, and
also controversial, step of giving additional time till September for Zee to
sell-off the stake and repay the over Rs 8,000 crore owed to them.
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RBI INJECTED RS 2.98 LAKH CRORE LIQUIDITY IN 2018-19
The Reserve Bank of India injected
a total liquidity of Rs 2.98 lakh crore in the market in 2018-19, one of its
reports said on Thursday. From a daily net average surplus of Rs 27,928 crore
during February 1-6, 2019, systemic liquidity moved into deficit during
February 7-March 31, reflecting the build-up of government cash balances, the
First Bi-monthly Monetary Policy Statement, 2019-20 stated. Currency in circulation
expanded sharply in February-March. The liquidity needs of the system were met
through injection of durable liquidity amounting to Rs 37,500 crore in February
and Rs 25,000 crore in March through open market purchase operations (OMOs).
Consequently, total durable liquidity injected by the Reserve Bank through OMOs
aggregated Rs 2,98,500 crore for 2018-19. Liquidity injected under the LAF,
(Liquidity Adjustment Facility) on an average daily net basis, was Rs 95,003
crore during February (February 7-28, 2019) and Rs 57,043 crore in March. The
weighted average call rate (WACR) remained broadly aligned with the policy repo
rate in February and March. Anticipating the seasonal tightening of liquidity
end-March, the Reserve Bank conducted four longer term (tenor ranging between
14-day and 56- day) variable rate repo auctions during the month in addition to
the regular 14-day variable rate term repo auctions. It also conducted
long-term foreign exchange buy/sell swaps of US$ 5 billion for 3 years on March
26, 2019, thereby injecting durable liquidity of Rs 34,561 crore into the
system, the statement said.
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REINSURANCE BROKERS PERMITTED TO OPEN FOREIGN CURRENCY
ACCOUNTS: RBI
The Reserve Bank of India
Thursday said reinsurance brokers have been permitted to open non-interest
bearing foreign currency accounts with banks for undertaking transactions.
Earlier, the Insurance Regulatory and Development Authority of India (Irdai)
had issued notification in this regard. Following the Irdai's notification, the
extant regulations regarding opening of foreign currency accounts were
reviewed. Reinsurance and composite insurance brokers registered with Irdai may
open and maintain non-interest bearing foreign currency accounts with an AD
bank in India for the purpose of undertaking transactions in the ordinary
course of their business, the RBI said. Foreign currency account refers to a
bank account held or maintained in currency other than the currency of India or
Nepal or Bhutan.
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BANK DEPOSITS FACE COMPETITION IN COMPANY NCDS
Banks are facing fresh
challenges in mobilising deposits as their non-bank rivals are attracting
savers with higher returns on bonds. Aggregate deposits of banks have shrunk by
Rs 4410 crore in the fortnight ending March 15, and with about half-a-dozen
NBFCs looking to mop up about Rs 3000 crore in non-convertible debentures
(NCD), banks have their task cut out to keep the flow intact. Small savers have
also shifted their preference to equities and mutual funds, which has forced
banks to hold on the deposit rates despite Reserve Bank of India’s signal for a
softer interest rate cycle. They have now to compete with Srei Infrastructure
Finance, Magma Fincorp, Shriram City Union Finance and Muthoot Homefin which
look to raise about Rs 2050 crore between them in the next three weeks. L&T
Finance has already concluded its Rs 1000-crore fund raising through NCDs. In
light of the recent rate cuts by RBI, well priced NCDs have become a preferred
choice of retail investors, said Rakesh Bhutoria, which is looking to raise Rs
500 crore in bond sales. These companies are offering coupon ranging from 8.6%
to 10.75%, much higher than what banks offer. State Bank of India offers a
maximum 6.85% for five-year deposits while Bandhan Bank offers a maximum of
7.65% for 18 months to less than two-year deposits.
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MSME CREDIT: PUBLIC SECTOR BANKS’ SHARE DIPS TO 39%
The share of public sector
banks in lending to micro, small and medium enterprises (MSME) has been declining
although overall lending to the sector has expanded rapidly According to the
TransUnion CIBIL-SIDBI MSME Pulse quarterly report, the market share of public
sector banks in MSME lending (both entities and individual segment) has reduced
from 58 per cent in December 2013 to 39 per cent in December 2018. The data
comes at a time when the government has been pushing its ambitious MUDRA scheme
to boost such enterprises and create employment and private sector banks have
also been getting increasingly attracted to the sector. The report, however,
noted that PSBs continue to be the single biggest lender to MSMEs. However,
private sector banks now have 33 per cent of the market share in lending to the
sector in December 2018 from a mere 22 per cent in December 2013. Going
forward, we would expect that the PSBs would be able to claw back some of the
share losses as more PSBs come out of the PCA framework. Their market share
growth will also be aided by the continued funding constraints being
experienced by the NBFC segment, the report said. It also noted that aggregate
lending to MSMEs has risen by a compounded annual growth rate of 19.3 per cent
over the last five years. Of the total on-balance sheet credit exposure in
India of ₹111.1 lakh crore as of December 2018, MSME credit accounted
for ₹25.2 lakh crore.
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RBI'S FEBRUARY DOLLAR BUYS HIGHEST IN 11 MONTHS
Reserve Bank of India's
spot dollar purchases is at 11 month high in February when RBI purchased $825
million from the market by absorbing foreign portfolio inflows amid weak dollar
demand. The Reserve Bank of India bought $ 2086 million and sold $1261 million
from the spot market in February, resulting in a net spot purchase of $ 825
million in February, according to the latest figures released by the Reserve
Bank of India. This is the highest spot dollar purchase by the central since
March’18 when it bought $996 million from the spot market during the month.
India’s foreign exchange reserves includes other currencies such as euro and
yen besides gold rose about $3.7 billion during the month. It may be recalled
that foreign portfolio flows into the Indian stock and debt markets were over $
2 billion during the month. Also, imports were down 5.41% to $36.26 billion in
February due to a dip in gold imports during the month resulting in a subdued
dollar demand. But the central bank sold about $1.3 billion in the forward
markets. The central bank often buys or sells foreign currency in the forward
market to neutralise the liquidity impact of such flows. Going by the available
trends, the Reserve Bank may continue to pile up dollar reserves as the market
witnessed a surge in dollar flows in March as well. Besides, the Reserve Bank’s
special $5 billion dollar swap scheme under which the central bank bought
dollars from the local commercial banks for a period of three years is also
expected to prop up dollar flows during the month. A research report by
Deutsche Bank notes that the rupee tends to strengthen in the run up to general
elections. This is generally propelled by portfolio flows which gives the
central bank scope to buy more dollars.
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DEBT MARKET TO REMAIN UNDER PRESSURE IN APRIL
The Indian government's
decision to lower Gross Domestic Product (GDP) forecast to 7.2 per cent for FY
2019-20 leading to hit on the Indian bond investment and crude oil prices going
up in the global commodity market, will also put the debt market under pressure
in April, believe market experts. They said that any further rate cut by the
MPC (Monetary Policy Committee) of Reserve Bank of India in June 2019 may have
its impact on the Foreign Institutional Investors (FIIs) and they might fish
out their money from the bond and equity markets. Anuj Gupta, said, The Indian
government has lowered its GDP forecast that has hit the investment into the
bond market because GDP growth is directly proportional to the bond market. The
debt outlook would also be affected as the global crude oil prices have started
to scale further. He added that the FIIs have pumped to the tune of around Rs
34,000 crore into the Indian equity markets and if the RBI further cuts rate in
June MPC meeting, it will have a negative impact on the bond and debt market
further. Suyash Chaudhary, said, In the first monetary policy review of the
FY20, the Monetary Policy Committee (MPC) decided to cut repo rate by 25 bps
(4:2 majority) while keeping stance neutral (5:1 majority). The Reserve Bank of
India (RBI) has cut both its growth and inflation forecast as well. GDP growth
forecast for FY 20 has been cut to 7.2 per cent with risks evenly balanced.
Given the global and local backdrop, we expect there is more easing in the
pipeline. The introduction of the forex swap tool for liquidity has had a very
benign effect on short end rates, given that it has caused hedge costs to fall
by around 100 bps. The spread between 4 to 5-year corporate bonds to 10 years
has now risen to almost 70 bps. Our preference remains for spread assets like
SDL and AAA corporate at the 10-year point. He added that spreads against
underlying government bonds have shrunk versus what they were in early March
citing, We believe there may be more room to go given the underlying
environment and policy thrust on transmission.
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BANK CREDIT GROWTH LOSES MOMENTUM, UP 13.24% TO RS 97.67
TRILLION
Bank credit rose by 13.24
per cent to Rs 97.67 trillion, while deposits grew by 10.03 per cent to Rs
125.72 trillion in the fortnight to March 29, according to RBI data released
Thursday. In the previous fortnight to March 15, credit demand had grown by
14.46 per cent to Rs 95.53 trillion while deposits increased by 10.03 per cent
to Rs 122.26 trillion. On a year-on-year basis, non-food bank credit increased
by 13.2 per cent in February 2019 as compared with an increase of 9.8 per cent
in the year-ago period. Loans to the services sector almost doubled with a 23.7
per cent growht in February compared to 14.2 per cent in the same month last
year. Advances to agriculture and allied activities increased by 7.5 per cent
in February compared to an increase of 9 per cent in February 2018. Credit to
industry rose by 5.6 per cent in February, up from an increase of 1 per cent in
February last year. Credit growth to infrastructure, chemical and chemical
products, and all engineering, accelerated. However, credit growth to basic
metal & metal products, textiles, and food processing
decelerated/contracted. Personal loans rose 16.7 percent in February down from
20.4 percent in February 2018.
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MORGAN STANLEY EXPECTS STRONG CORPORATE EARNINGS IN Q4
Morgan Stanley is
expecting strong Q4 for most corporate and banking sector in India led by
strong loan growth, higher underlying margins and improving asset quality.
Interest income will be broadly steady across banks despite regulatory changes,
given the pick-up in capital market activities and stabilisation in corporate
banking segment, Morgan Stanley said in its report. The investment banker
stated that it prefers large liquid banks such as ICICI Bank , HDFC Bank, State
Bank of India, Axis Bank and Kotak Mahindra Bank. Morgan Stanley expects slower
revenue growth for non-banking financial companies. However, it said the large
corporate banks is likely to show continued improvement in asset quality, with
lower impaired loans and higher coverage.
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INCOME SCHEMES WAS THE WORST-PERFORMING MUTUAL FUND CATEGORY
IN FY19
At the end of FY19, the
category managed Rs 7.2 trillion worth of assets, which was 8.5 per cent lower
than the assets it managed before beginning of the year. From 37 per cent of
industry assets as of March 31, 2018, the income category’s share slipped to 30
per cent at the end of FY2019. According to experts, the rise in interest rates
in the first half of the financial year, combined with the panic caused by the
IL&FS crisis in September, hurt investor sentiment. Since September, the
category has seen outflows to the tune of Rs 68,349 crore. For the full
financial year, the category has seen more than Rs 1.2 trillion of outflows.
The change in asset mix meant that equity schemes emerged as the largest
category at the end of the financial year. Equity schemes (includes tax-saving
schemes) held onto 36 per cent of industry assets as of March 31. However,
industry players are positive on the future outlook of the income category. The
50 basis points rate cut by the Reserve Bank of India in recent months should
revive the investor sentiments, said a fund manager. In March, the category
garnered Rs 13,856 crore of flows, which was its highest tally in 17-months.
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INDIAN COMPANIES' FOREIGN INVESTMENT RISES 18% TO USD 2.69
BILLION IN MARCH
Foreign investment of
Indian companies grew 18 per cent to USD 2.69 billion in March as compared to
the year-ago period, according to an RBI data. The domestic firms made
investment of USD 2.28 billion in their subsidiaries and wholly-owned units
abroad during March 2018. Of the total investment overseas in March this year,
USD 1.68 billion was in the form of loan, USD 564.97 million as equity while
the rest USD 443.71 million was in the form of issuance of guarantee. Major
investors included Tata Steel, which pumped USD 1.15 billion in a subsidiary in
Singapore. This was followed by JSW Cement (USD 82 million in a wholly-owned
subsidiary in the UAE) and ONGC Videsh Ltd (USD 70.37 million in various joint
ventures in Myanmar, Russia and Vietnam).
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PSBS SHARE IN MSME CREDIT PLUNGES TO 39% IN DEC 2018 FROM 58%
IN DEC 2013: SIDBI REPORT
Despite the many a policy
thrust on helping small businesses like the Mudra and 59 seconds loan schemes,
the share of the state-run banks in loan disbursals to the MSME segment has
plunged to 39 percent in December 2018 from a high 58 percent five years ago,
says a report. According to a report by the Small Industries Development Bank
of India (Sidbi), the government's specialised vehicle to uplift the sector,
and credit information company Cibil Transunion, the plunge is due to the asset
quality woes plaguing the state-run banks. And the loss of the state-run banks
has been the gain of private sector banks and non-banking financiers, which in
the meanwhile, grew at a much faster clip, leading to an increase in their
market share to 33 percent in December 2018 from 22 percent in December 2013,
and up to 21 percent from 13 percent, respectively.
The report did not
quantify the credit disbursals in absolute terms though. It can be noted that
the government has been giving a lot of focus to the MSME segment through
schemes like Mudra and another one under which loans are passed in just 59
seconds, which was launched by Prime Minister Narendra Modi last year with much
fanfare. The massive fall in the credit share of state-run banks is striking as
normally, government schemes are driven on the back of state-run banks. Going
forward, we expect that state-run banks would be able to claw back some of
their lost share as they come out of the prompt corrective action (PCA) framework
of the Reserve Bank, the report said Thursday. The PCA is the special provision
wherein the Reserve Bank restricts a lender's activities due to various reasons
including high non-performing assets. From an NPA perspective, the MSME segment
showed an improvement in the quarter to December 2018, and Sidbi chairman and
managing director Mohammad Mustafa considers this, along with credit growth, as
a promising indicator.
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BSNL EXPECTS LOSS TO NARROW TO RS 7,500 CRORE IN FY19
On the back of several
cost-cutting measures undertaken, the ailing telecom PSU company BSNL is
expected to narrow its losses to Rs 7,500 crore for the fiscal year ending
March 2019. It had posted a loss of Rs 8,000 crore for the year ended March
2018, and Rs 4,793 crore in the year-ago fiscal. For the first time, the
company recorded a 50% increase in its enterprise business revenues at Rs 6,500
crore during 2018-19. The company, however, has not officially announced the
financial numbers. The market share of BSNL has increased from 9.44 % to 9.76 %
(all India level) from March 2018 to January 2019, as per Trai numbers. Owing
to a huge employee base of around 1.76 lakh with annual expenses of Rs 15,000
crore, BSNL has been struggling to manage its financials for the past several
years. The heightened competitive intensity has impacted the overall telecom
industry, leading to a decline in margins and triggering a consolidation phase.
BSNL's employee costs account for 55-60% of the total expenditure.
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AIR CANADA IS DARK HORSE IN RACE FOR JET AIRWAYS
Air Canada has emerged as
the dark horse in the race to acquire Jet Airways. The Canadian airline, along
with Etihad, is among the top contenders for the debt-laden Indian airline.
Heartened by the interest from these foreign carriers, State Bank of India, the
lead lender to Jet Airways, on Wednesday extended the deadline for Expression
of Interest to April 12. There are more than two investors who are interested
in putting in a bid, said a top source. According to another source, Air Canada
has sent a written application to the state-run bank seeking an extension.
According to one of the persons cited above, Since Air Canada is an overseas
airline and there is a time difference with India, the airline needs time for
due diligence. The lenders have agreed to give an extension. Malaysian carrier
Air Asia and Tata Sons joint venture Vistara are also understood to be among
those who have sought a clarification from lenders. Jet Airways’ current joint
venture investor Etihad Airways had also confirmed its interest in bidding for
the beleaguered airline.
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500 SOCIAL MEDIA POSTS TAKEN DOWN IN LAST 48 HOURS
Acting on Election
Commission’s request, social networking platforms Twitter, WhatsApp and
Facebook removed over 500 posts advertisements, accounts and other
objectionable content found in violation of the Representation of the People
Act and the model code of conduct, the Commission said on Thursday. This
follows a voluntary code of ethics signed between EC and social media giants in
March in which the latter had agreed to comply with legal requests from EC to
remove content in violation of 48-hour silence period, within 3 hours. An EC
officer said 468 posts were reported to Facebook and removed in past 48 hours
alone. The posts included violations of MCC and voter misinformation. One post
was from Karnataka, two from Assam and the remaining from Telangana. Thirty two
advertisements active in Telangana were removed. Seven advertisements and two
post are reported, awaiting action, the EC said. Twitter has removed two
accounts while action on 39 others is awaited.
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CONG MANIFESTO HAS SOME DESIGN ISSUES
One of the most talked
about manifestos has been the one by Indian National Congress (INC) due to its promise
of Nyuntam Aay Yojana (NYAY or minimum income scheme). The manifesto states
that the decisive and focused intervention has the capacity to eliminate
poverty within a decade i.e. by 2030. It claims that during its 10-year regime,
the UPA moved 14 crore people out of poverty. The NYAY is targeted at the
bottom 5 crore families (BPL households) constituting 20 per cent of all
households who would be guaranteed a cash transfer of ₹72,000
per annum per family, in most cases in the bank account of a female adult
member. The plan will be designed over three months followed by a pilot and
testing phase of six to nine months before being rolled out in phases. It is
estimated to cost less than 1 per cent of GDP in the first year and less than 2
per cent in the second year and the years after that. The entire plan would be
overseen in its design, testing, roll out and implementation by an independent
panel of eminent economists, social scientists and statisticians. It is
proposed to be implemented jointly by the Centre and the State governments. The
funding of the scheme would come from new revenues and rationalisation of
expenditure, including non-merit subsidies. The major question this scheme
gives rise to, is: if, in the next few years, poverty is likely to decline in
terms of proportion of families under BPL as claimed in its (UPA’s) performance
record for the previous terms, then why should each family get it for five
years? The other related issue is: if this scheme is intended to move BPL
households out of poverty then why target to enhance MGNREGS employment to 150
days which, anyway, is unlikely to be achieved going by the previous experience
of more than 10 years where the average number of employment days generated
under the scheme has been only around 50 days unless there is specific
targeting of areas/districts for MGNREGS in some States. The third issue which
remains is that the assumed participation of the States may not happen as
expected, which is unlike the PM Kisan scheme wherein the entire scheme is
implemented by the Union Government. But, PM- Kisan targets only land owning
marginal and small farmers (not even all rural poor) and therefore, is limited
in its coverage and is estimated to cost only 0.4 per cent of GDP compared with
NYAY which could cost 2 per cent of GDP and 14 per cent of current annual tax
revenue due to its large coverage of poor households (both urban and rural) and
higher amounts paid per family (₹6,000 per month compared
with ₹6,000 per year under PM-Kisan). Incidentally, MGNREGS costs
only 2.2 per cent of current tax revenue and all subsidies together 12 per cent
of annual tax revenue. Both, PM-Kisan and NYAY move toward direct cash
transfers instead of product or service subsidies. It is debatable whether
Indian poor, especially small farmers, need and should be given only cash.
Should they not have access to adequate and quality services/products if these
subsidies are merit subsidies? This issue crops up with respect to the defence
of PM-Kisan; when the issue of its exclusion of landless is raised, it is said
that for them MGNREGS can be strengthened (as if it is leakage free). The
Congress’ proposal to repeal the APMC Act and make trade in agricultural
produce including export and inter-State trade free from all restrictions is an
ill-thought proposal. Instead of proposing repealing the APMC Act, there should
have been some innovative thinking on bringing new channels for farmer produce
like contract farming, direct purchase, private wholesale markets and the like.
Further, the repealing of the Act also suggests as if there is no need for
regulation of the markets. Have Indian farmers become so capable that their
interest in the market need not be protected at all by any regulation? Already,
the union model Acts on APLM (2017) and Contract Farming (2018) are moving
towards facilitation and promotion of these mechanisms rather than regulation.
Even so, it is important to realise that agriculture and agricultural markets
are State subjects and the Union Government can’t enforce any policy or
regulation. Most of the other proposals like promotion of FPOs and PCs, focus
on food processing and cold storage and warehousing, encouragement to organic
farming and rejuvenation of extension system are routine; many of these
policies are already in place at present and they sound more like annual budget
proposals.
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MINISTRY OF RURAL DEVELOPMENT PRESENTS RECOMMENDATIONS FOR
FOSTERING HIGHER INCLUSIVE GROWTH
Amarjeet Sinha, made a
detailed presentation on the Ministry’s plans on fostering higher inclusive
growth, equity, efficiency and transparency – to the Chairperson Shri N.K.
Singh and Members and senior Officials of the Fifteenth Finance Commission. The
Presentation dwelled upon the changing structure of rural economy; Gram
Panchayat led, data driven and accountable development approach; governance
reforms for better outcomes and other specific proposals for rural development.
The Ministry made a case for additional resources for Rural India on the
account of :-
·
Higher/New State Share –
PMGSY, PMAY (G).
·
Extra Budgetary borrowing
– PMAY Gramin.
·
Finance Commission
transfer.
·
Massive rise in loans to
SHGs – Rs.81,077 cr.
·
Increasing incomes through
livelihood thrust – farm ponds, wells, animal sheds/resources.
·
Larger effective transfer
due to governance reforms – IT/DBT – Decline in leakages.
·
Other specific proposals
of Rural Development like maintenance of roads, transfer of certain schemes,
and Human Resource Reforms.
The presentation also made
a case of Government’s Reforms and conversant Growth Panchayat Development
·
Governance Reform and
Convergent Gram Panchayat Development Plans as necessary pre-condition for fund
transfers
·
Capacity building of
Panchayats (along with women SHGs), use of technology, data driven financial
management reforms, and geo-tagging as necessary conditions.
·
Comprehensive HR as part
of recommendations.
·
Earmarking for road
maintenance.
·
Transferring DRDSs to
States.
The Commission shall now
take into consideration all the issues raised for the purpose of framing its
recommendations to the government.
#For Source of Information copy and paste the heading in google.
Thanks & Regards,
CS Meetesh Shiroya
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