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[No.81]                                                                            March 30, 2004

International
SEBI
CBEC Customs Tariff
CBEC Customs non Tariff
RBI
DGFT
Secretariat for Industrial Assistance (SIA)
Ministry of Information and Broadcasting
Press Information Bureau
Supreme Court
High Courts

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International Cases Legal News

Cases

Source: Westlawinternational.com

  • Criminal Justice: Wife's statement against spouse can't be used

The Supreme Court ruled that the Constitution guarantees a criminal defendant to confront his accusers, and that right means prosecutors can't use a wife's taped statement to police to try to undermine her husband at trial. The high court sided with a man convicted of assaulting an acquaintance he had accused of trying to rape his wife. Sylvia Crawford did not testify at Michael Crawford's trial, but prosecutors played a tape they claimed showed her story did not match his. The Crawford case began in 1999, when Crawford and his wife went to find Kenneth Lee at his apartment in Olympia, Washington. The Crawfords fled the apartment and were arrested that night. They both gave statements to police, but only Michael Crawford said he thought he had seen Lee reach for a weapon before he was stabbed. Sylvia did not testify at her husband's trial because of the law protecting spouses from testifying against one another. Prosecutors used her statement to refute his claim that the stabbing was self-defense.

Crawford v. Washington

  • Civil Rights: Reducing civil rights attorney fee award on basis of litigant's status as prisoner

Denying certiorari, the United States Supreme Court has let stand an en banc decision of the Seventh Circuit Court of Appeals that the Prison Litigation Reform Act (PLRA) does not violate the equal protection rights of inmate litigants by reducing the amount of attorney fees otherwise available for successful civil rights actions on basis of their status as prisoners. A plurality of the Circuit Judges of the Seventh Circuit found that the attorney fee limitations are rationally related to valid objectives and hence within the legislative power

Johnson v. Daley

  • Criminal Justice: Admission of prejudicial autopsy photographs during guilt phase as violative of due process in capital case

The United States Supreme Court, denying certiorari, has let stand a decision of the Texas Court of Criminal Appeals that the admission during the guilt phase of a capital murder trial of highly graphic and extremely gruesome autopsy photographs of 19-month-old murder victim was harmless error. The Texas court grounded its decision on a finding that, although the probative value of the photographs was substantially outweighed by their danger of unfair prejudice, other inculpatory evidence rendered the erroneous admission harmless under state law.

Avila v. Texas

  • Education: Constitutionality of restrictions on elementary student's distribution of items with religious messages

An elementary school's restrictions on a student's distribution of candy and pencils containing religious messages did not violate the student's First Amendment rights, the Third Circuit previously held in a case in which the United States Supreme Court has now denied certiorari. The school prevented the distribution of candy canes accompanied by a religious message during class holiday parties but permitted the student to give them to his classmates in the school hallway after class or at recess. The school never punished the student for his repeated attempts to skirt the holiday parties' rules, the Court of Appeals noted. The school also prevented the child from distributing pencils bearing the message "Jesus [Loves] The Little Children." The Court of Appeals stated that, with respect to the pencils, the student was not attempting to exercise a right to personal religious observance in response to a class assignment or activity. Rather, his mother's stated purpose was to promote a religious message through the channel of a benign classroom activity. In the context of its classroom holiday parties, the school's restrictions on this expression were designed to prevent proselytizing speech that, if permitted, would be at cross-purposes with its educational goal and could appear to bear the school's seal of approval, the Court of Appeals said.

Walz ex rel. Walz v. Egg Harbor Tp. Bd. of Educ.

  • Energy and Utilities: States may restrict public entities from providing telecommunications services

Resolving a split between two Circuit Courts of Appeal, the United States Supreme Court has held that a provision of the Telecommunications Act prohibiting state or local laws that prevent "any entity" from providing telecommunications services does not preempt state or local laws barring municipal participation in the telecommunications field. The dispute before the Court concerned a Missouri law that prohibited municipalities and municipally owned utilities from providing such services. It was held that preempting a ban on government utilities would not accomplish much if the government could not point to some law authorizing it to run a utility in the first place. And preemption would make no difference if the state regulator were left with control over funding needed for any utility operation and declined to pay for it.

Southwestern Bell Telephone, L.P. v. Missouri Mun. League

  • Environmental Law: Clean Water Act requires permits for point sources that do not themselves generate pollutants

Vacating and remanding an Eleventh Circuit decision, the United States Supreme Court held that a "discharge of a pollutant," for which a National Pollutant Discharge Elimination System (NPDES) permit is required under the Clean Water Act, includes within its reach point sources that do not themselves generate pollutants. The Supreme Court further held that there were fact issues, precluding summary judgment, as to whether a certain canal and a certain wetland area in the Florida Everglades were meaningfully distinct water bodies, for purposes of determining whether the water management district that pumped polluted water from the canal into the wetland required a permit.

South Florida Water Management Dist. v. Miccosukee Tribe of Indians

  • Taxation: Separate assessment unnecessary to extend limitations period to collect partnership's tax debt from partners

The proper assessment of a tax against a partnership sufficed to extend the statute of limitations for collection of the tax in a judicial proceeding from the general partners who were liable for the payment of the partnership's debts, the United States Supreme Court has held, reversing a decision of the Ninth Circuit. Although the debtors were jointly and severally liable for the partnership's debts under California law, this did not make them primarily liable for the partnership's tax debt. Under California's partnership principles, a partnership and its general partners are separate entities. Thus, the debtors could not argue that imposing a tax on the partnership was equivalent to imposing a tax directly on the general partners.

U.S. v. Galletti

News

  • Antitrust Ruling To Be Appealed By Microsoft

Microsoft Corp. vowed to appeal a European antitrust ruling that would, for the first time, force the company to strip Windows and pay a hefty fine. The order was based on a finding that Microsoft illegally abused its dominant market position to stifle competing software makers. Different elements of the order will take effect in the next three to four months. The ruling is the biggest challenge yet to the company's longstanding practice of expanding its market presence by bundling extra programs with Windows. Microsoft faced a similar challenge in the United States antitrust case over its bundling of the Internet Explorer browser with Windows. But the company was ultimately allowed to continue the practice.

  • Tyson's Antitrust Liability Remains Far From Unclear

While the judge in a civil antitrust case against Tyson Foods Inc. has said he won't order the meat company to pay the $1.28 billion in damages calculated by the jury, Tyson's ultimate liability remains far from clear. The case centered on Tyson's use of contracts and alliances to gain control of cattle long before slaughter, instead of buying them on the day of slaughter, as in the past. The plaintiffs successfully argued that the contracts reduce the number of cattle sold in the open market, thus depressing prices for producers who sell that way. The class-action suit was supported by farm groups opposed to consolidation in the meat-packing industry.

  • Atheist In High Court Objects To 'Under God' Phrase

Atheist Michael Newdow sought to convince U.S. Supreme Court justices that schoolchildren reciting "under God" in the Pledge of Allegiance amounts to a government-imposed religious exercise which violates constitutional church-state separation. This made him win applause in the courtroom at one point, but several skeptical justices said students can be excused from the recitations or can simply not say the "under God" part. Newdow, who is an Atheist and does not believe in God said his daughter was asked to stand up and say her father was wrong. The U.S. Congress in 1954 added "under God" to the pledge in an effort to distinguish America's religious values and heritage from those of communism, which is atheistic.

  • New Driving Licence Rule Termed Illogical

Expatriates have complained over new rules which prevent them from applying for driving licences in any other emirate apart from the one issuing their residency visa. The Ministry of Interior has banned people from obtaining licences even from the emirate where they live and/or work if their residence visa was issued in another region. However, senior officials such as director generals or managers have been exempted from the rule. Previously, anyone could obtain a driving licence from the emirate in which they lived or worked with a letter from their employer or a copy of their rent agreement.

  • War On Money Laundering, UAE Stock Exchange Enters The Market

The UAE stock market has joined a campaign by banks and other institutions in the UAE to combat money laundering by introducing curbs on financial dealings. The country's top market regulator has told the two main stock exchanges in Abu Dhabi and Dubai to ensure that the cash they receive from investors and other dealers is clean money and set a ceiling on accepted cash of Dh40,000 ($10,900). The UAE began enforcing anti-laundering laws two years ago to ensure no dirty money would find its way into or out of the country. The law includes tough prison terms and heavy fines against persons and banks involved in such operations.

  • Singer Bobby Brown Ordered Jailed By Judge

A family court judge ordered R&B singer Bobby Brown, husband of singer Whitney Houston, jailed for 90 days or until he pays $63,500 in child support he owes to the mother of two children he fathered. Judge Paula Carey issued the ruling after Brown, testified that he was unable to pay support he owes for children, now 12 and 14, that he fathered with Kim Ward, of Stoughton. Brown, 35, also is charged with misdemeanor battery after he allegedly hit Houston, leaving her with a bruised cheek and a cut lip. He is scheduled to appear May 5 in a Fulton County, Ga., court on that charge. Brown left R&B group New Edition in the late 1980s for a solo career. His hits include "My Prerogative" and "Every Little Step," but became more famous for his numerous brushes with the law and his turbulent marriage with Houston.

  • Confusing Custody Battle Over Twin Girls Between Former Same-Sex Couple

Against the backdrop of the nation's cultural wars over same-sex marriages, one former same-sex couple is caught up in a fierce legal tug-of-war over rights to their twin girls. Kim, says she and her partner split up five years after they had twin girls together. A fertility clinic provided Kim and her former partner with sperm and Kim provided the eggs. Her former partner provided the womb, and that's why a judge ruled she is entitled to sole custody. When they split, the designated birth mother moved to Massachusetts with the girls. Kim went to court to obtain shared custody, but her attempt was unsuccessful. Kim, whose uterus could not support a pregnancy, says she never attempted to legally adopt the twins before she and her former partner split because she never assumed it would become an issue, considering the girls came from her own eggs. A decision is the case is expected in the next week.

  • Court Weighs Giving Name To Police

The justices heard arguments in a first-of-its kind case that asks whether people can be punished for refusing to identify themselves. The court took up the appeal of a Nevada cattle rancher who was arrested after he told a deputy that he had done nothing wrong and didn't have to reveal his name or show an ID during an encounter on a rural road four years ago. Larry "Dudley" Hiibel, 59, was prosecuted, based on his silence, and finds himself at the center of a major privacy rights battle. The case will clarify police powers in the post-September 11 era, determining if officials can demand to see identification whenever they deem it necessary.

SEBI

Secondary Market Department

  • Margin Trading and Securities Lending and Borrowing

Circular No. SEBI/MRD/SE/SU/Cir-15/04 Dated 19.03.2004 : It has been decided to allow the member-brokers to provide margin trading facility to their clients, in the cash segment. The securities in Group 1 would be eligible for margin trading facility. The securities having mean impact cost of less than or equal to 1 and having traded on atleast 80% (+/-5%) of the days for the previous eighteen months, have been categorized as Group 1. An eligibility criterion has also been set to provide margin trading facility to clients. Accordingly, only corporate brokers with a "net worth" of at least Rs.3.00 crore would be eligible to offer margin trading facility to their clients. These brokers are also mandated to submit to the stock exchange a half-yearly certificate, as on 31st March and 30th September of each year, from an auditor confirming the net worth as specified in this behalf and such a certificate shall be submitted not later than 30th April and 31st October of the year.

  • Clarification Regarding SEBI (Central Database of Market Participants) Regulations, 2003

Circular No. MAPIN/Cir-14/2004 Dated 18.03.2004 : It has been clarified that payment towards the application fee for obtaining the Unique Identification Number can be made in the form of consolidated demand draft in favour of SEBI, along with a list of particulars of the persons on behalf of whom the applications and the payments are made. This would be deemed to be in compliance with Regulation 12 of the SEBI (Central Database of Market Participants) Regulations, 2003. It has also been clarified that dependent minor children of the natural persons mentioned in sub-clauses (i) to (vii) of regulation 4(1)(b) of the captioned Regulations need not obtain unique identification numbers or make applications in respect of the same.

Mutual Funds Division

  • Uniform Cut-off Timings for Applicability of Net Asset Value (NAV) of Mutual Fund Scheme(s)/Plan(s)

Circular No. SEBI/ IMD/CIR No. 8/5611/ 2004 Dated 19.03.2004 : On coming across reports about late trading' in Mutual Funds, in some countries where undue advantage was taken by a few investors due to different cut-off timings for applying NAVs both for subscriptions and redemptions, to the disadvantage of other investors, SEBI has issued guidelines in this behalf. The guidelines have been made applicable to all the schemes/plans of Mutual Funds whether existing or new.

  • Investment in Foreign Securities by Mutual Funds

Circular No. SEBI/ IMD/CIR No. 7/5573/ 04 Dated 19.03.2004 : It has been decided to permit each mutual fund to invest in foreign securities up to 10% of their net assets as on January 31 of each relevant year (instead of the present reference date of January 31, 2003). e.g. the reference date upto January 30, 2005 shall be January 31, 2004.

Foreign Institutional Investors

  • FII investment in Debt Securities

Circular No. IMD/CUST/14/2004 Dated 19.03.2004 : Government has clarified that the FII investment limit allocated every year under their relevant guidelines is a cumulative limit and since limit has not been finalized for 2003-04, the existing cap of US$ 1 billion for investment by 100% debt FIIs in debt securities and investment under the 70:30 route in dated Government securities and treasury bills for the year 2002-03 will continue. This has been brought with immediate effect.

CBEC Customs Tariff

  • Claim of Refund Directly Without Challenging Assessment as in Original Assessment Orders

Circular No. 24/2004 Dated 18.03.2004 : In the matter of claiming of refund directly without challenging assessment as done in the Bill of Entry by assessing officer, the Board after considering the tribunal decision in the cases of M/s Super Cassette Industries vs Commissioner Customs (reported in 2003(58) RLT F9), M/s Motilal Dulichand vs Commissioner Customs, New Delhi (reported in 2003(157) ELT A 265) and M/s HCL Perot Systems Ltd vs Commissioner Customs, New Delhi (decision dated 6.10.2003 in CA D.No.13751/2003) reached to the conclusion. Accordingly, it has been clarified that a refund claim is not maintainable, when the assessee did not challenge the assessment order which became final.

  • Testing of Imported Textile/ Textile Articles for its Composition and Hazardous Dyes

Circular No. 23/2004 Dated 15.03.2004 : It has been decided that in all of the cases, where samples are required to be sent for testing hazardous dyes to Textiles Committee laboratory under the Ministry of Commerce, the testing for composition, i.e, texturised/non-texturised, should also be done at Textiles Committee laboratory to avoid duplication of work. However, where no test for azo-dyes are required as per the DGFT Notification No.29/(RE-2004)/2002-2007, dated 28.1.2004 , the test for composition, i.e, texturised/non-texturised, shall be carried out at the CRCL in-house testing laboratory.

CBEC Customs Non Tariff

  • Prohibition on Import of Hazardous Wastes

Notification No. 35/2004-N.T. Dated 19.03.2004 : The Central Government, for the purpose of the protection of human, animal, plant life and health, has prohibited hazardous wastes as specified in Schedule-8 of the Hazardous Wastes (Management and Handling) Rules, 1989, issued under the Environment (Protection) Act, 1986 (29 of 1986), from import thereof into India and from export thereof out of India.

  • Appointment of Commissioner of Customs to Adjudicate the Matter Specified

Notification No. 33/2004-N.T. Dated 17.03.2004 : The Board has appointed the Commissioner of Customs, Bangalore, to act as the Commissioner of Customs ( Sea Port), Chennai and Commissioner of Customs (Air Port), Chennai for the purpose of adjudicating the matters relating to Show Cause Notices pertaining to M/s Sansri Trading Corporation, No 110/10, Pantharapalya, behind VRI Press, Nayandahalli , Mysore Road, Bangalore issued vide DRI F. No. S/IV/21/03 (A), DRI F. No. S/IV/21/03 (B) and DRI F. No. S/IV/21/03 (C), all dated the 3rd November,2003, by the Additional Director General, Directorate of Revenue Intelligence, Bangalore.

RBI

  • Overseas Foreign Currency Borrowings by Authorised Dealers - Rationalisation and Monitoring

Circular No. A.P.(DIR Series) Circular No. 81 Dated 24.03.2004 : It has been decided to rationalise the existing facilities for overseas borrowings and introduce a monitoring and reporting system for all ADs. Accordingly, the facilities available under paragraph Nos.C.5(i) and (ii) of the Master Circular on Risk Management and Inter-Bank Dealings dated July 1, 2003 will now be replaced by a single facility in terms of which all categories of overseas foreign currency borrowings including existing ECBs and overdrafts in Nostro accounts not adjusted within five days, shall not exceed 25 per cent of their unimpaired Tier-I capital as at the close of the previous quarter, or USD 10 million (or its equivalent), whichever is higher. Any fresh borrowing above this limit shall only be with the prior approval of the Reserve Bank of India. Applications for fresh ECBs will be made as per the ECB policy vide A.P.(DIR Series) Circular No.60 dated January 31, 2004. The following transactions would continue to be outside the limit of 25 per cent of unimpaired Tier-I Capital or USD 10 million (or its equivalent), whichever is higher :

i. Overseas borrowings by ADs for the purposes of financing export credit subject to the conditions prescribed in IECD Master Circular dated July 1, 2003 on Export Credit in Foreign Currency.

ii. Subordinated debt placed by head offices of foreign banks with their branches in India as Tier-II capital.

  • Liberalised Remittance Scheme of USD 25,000 for Resident Individuals- Investor Protection - Disclosure Requirements

Circular No. A.P.(DIR Series) Circular No. 80 Dated 18.03.2004 : Through A.P. DIR (Series) Circular No. 64 dated February 4, 2004, RBI had announced a Scheme of permitting resident individuals to make remittance for an amount not exceeding USD 25,000 per calendar year. This facility is available for making remittance up to USD 25,000 per calendar year for any current or capital account transaction or a combination of both. Now it has been observed that several advertisements/ news items have appeared soliciting foreign currency funds/deposits at certain interest rates to be placed at overseas centers or on behalf of overseas mutual funds. These advertisements do not contain appropriate disclosures to guide potential depositors. It has therefore been decided in public interest, that all banks, both Indian and foreign, including those not having an operational presence in India, should seek prior approval from RBI for the schemes being marketed by them in India to residents either for soliciting foreign currency deposits for their foreign/overseas branches or for acting as agents for overseas mutual funds or any other foreign financial services company. The applications in this regard may be addressed to the Chief General Manager-in-Charge, Department of Banking Operations and Development, Reserve Bank of India, Central Office, Centre-1, World Trade Center , Cuffe Parade, Mumbai -400005. However, the above instructions do not restrict the freedom of resident individual from investing in permissible capital account transactions under the Scheme.

  • Liquidity Adjustment Facility - Revised Scheme

Notification No. IDMD.OMO No. 04 /03.75.00/2003-04 Dated 25.03.2004 : It has been decided to revise the existing LAF Scheme. The revised Scheme will come into effect from March 29, 2004. The revised Scheme will be operationalised through (i) 7-day fixed rate repo conducted daily and (ii) overnight fixed rate reverse repo conducted daily, on weekdays. However, in order to achieve smooth transition to the revised Scheme, the existing overnight variable rate repo auction facility with the existing features would also be available to eligible market participants upto April 2, 2004. Subsequently, the overnight repo auction will be discontinued and only the 7-day repo auction will be available. Further, in order to enable market participants to meet their prior commitments based on their existing operations, the 14-day repo, conducted on a fortnightly interval, would also continue with the existing features. The 14-day repo will, however, be phased out in due course. Under the revised Scheme, Reserve Bank will continue to have the discretion to conduct overnight repo or longer term repo auctions at fixed rate or at variable rates depending on market conditions and other relevant factors.

  • Standing Liquidity Facilities for Banks for Export Credit and Primary Dealers (PDs): Rationalisation

Circular No. MPD. BC.246/07.01.279/ 2003-04 Dated 25.03.2004 : In order to rationalise the existing structure of liquidity support from the Reserve Bank, it has been decided that, as recommended by the Internal Group on Liquidity Adjustment Facility (LAF) and suggested by market participants, the entire amount of support under the Standing Liquidity Facilities would be made available at a single rate. Accordingly, it has been decided to merge the normal facility and back-stop facility into a single facility to be made available at a single rate, viz., at the reverse repo rate with effect from March 29, 2004. Currently, the Bank Rate is at 6.0 per cent and the reverse repo rate is at 6.5 per cent. In the light of the revised LAF Scheme, the reverse repo rate stands reduced to 6.0 per cent with effect from March 29, 2004. This would result in a reduction of part of cost of funds for banks and PDs.

  • Submission of Progress Report Under Government Sponsored Schemes - Change in Periodicity of Returns Under SGSY, SJSRY And SLRS

Notification No. RPCD.SP.BC.No. 72 /09.01.01/2003-04 Dated 25.03.2004 : It has been decided that the progress under the Government sponsored schemes will be monitored by RBI on a monthly basis instead on quaterly basis as earlier.. As such, banks are advised to furnish us the data under SGSY, SJSRY and SLRS on monthly basis (so as to reach RBI by end of the next month to which data is related). This change in periodicity will be effective from the month of April 2004 onwards. The format for submission of data remains the same.

  • Prime Minister's Rozgar Yojana - Cut-off Date for Lapsing of Sanctions and Completion of Disbursement for Programme year 2003-04

Notification No. RPCD.No PLNFS.BC.71/09.04.01/2003-04 Dated 18.03.2004 : The cut off date for lapsing of sanctions and completion of disbursement for the programme year 2003-2004 under the PMRY has been extended to 30.09.2004.

Issue Of 5 Per Cent Oil Companies Government Of India Special Bonds, 2009

  • Issue Of 5 Per Cent Oil Companies Government Of India Special Bonds, 2009

Press Release No. 2003-2004/1114 Dated 23.03.2004 : Government of India have announced the issue of '5 per cent Oil Companies' Government of India Special Bonds, 2009 for liquidating outstanding claims of Oil companies aggregating to Rs. 348.63 crore against Oil Pool Account. The Special Bonds will be issued at par to Oil and Natural Gas Corporation Limited (ONGC) for 257.60 crore and Oil India Limited (OIL) for Rs. 91.03 crore on March 23, 2004. The Special Bonds will be transferable and eligible for market ready forward transactions (Repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (Repo/Reverse Repo) with the Reserve Bank of India.

  • New Executive Director Appointed in RBI

Press Release No. 2003-2004/1102 Dated 19.03.2004 : Shri P. V. Subba Rao has taken over as Executive Director of the RBI. He will look after Industrial & Export Credit Department, Inspection Department and Secretary's Department. Prior to this, Shri Subba Rao was head of Department of Banking Supervision.

DGFT

  • 100% Bank Guarantee Condition for Importability of Cars, Microbuses etc. Under 5 % EPCG Scheme

Circular No. 30 (RE-2004)/2002-2007 Dated 22.03.2004 : Policy Circular No. 33 dated 15th November, 2000 specified the 100 % Bank Guarantee conditions for importability of cars, microbuses etc. by travel agents, tour operators, tourist transport operators under 5 % EPCG Scheme. Now the Public Notice 53 dated 27-2-2004 allowing Bank Guarantee/LUT facility, subject to certain conditions, has been notified, therefore, the aforesaid policy circular stands withdrawn from immediate effect. Bank Guarantee/LUT conditions would be endorsed on the licence or the condition sheet attached to it, as the case may be, as per Public Notice No. 53 dated 27.2.2004.

Secretariat for Industrial Assistance (SIA)
  • Revision of Existing Sectoral Guidelines and Equity Cap on FDI Including Investment by NRIs and OCBs/ FIIs in the Banking Sector

Press Note No. 2/2004 Dated 05.03.2004 : With a view to further liberalising foreign investment in Banking Sector, the Government have effected the following changes in FDI limit in Indian Private Sector Banks:-

(i) FDI limit in Private Sector Banks is raised to 74 per cent under the automatic route including investment by FIIs.

(ii) The aggregate foreign investment in a private bank from all sources will be allowed up to a maximum of 74 per cent of the paid up capital of the Bank.

(iii) Transfer of shares under FDI from residents to non-residents will continue to require approval of FIPB under Foreign Exchange Management Act

(iv) RBI guidelines relating to acquisition by purchase or otherwise of shares of a private bank, if such acquisition results in any person owning or controlling 5 per cent or more of the paid up capital of the private bank will apply to foreign investors as well.

Apart from above Foreign banks have been permitted to either have branches or subsidiaries not both. A foreign bank has been restricted to operate in India but only through only one of the three channels viz. (i) branch/es (ii) a wholly-owned subsidiary and (iii) a subsidiary with aggregate foreign investment up to a maximum of 74 per cent in a private bank. Also, A foreign bank will be permitted to establish a wholly-owned subsidiary either through conversion of existing branches into a subsidiary or through a fresh banking licence.

Ministry of Information and Broadcasting

  • Prohibition on Transmission of Channel REN TV

Order No. SO349(E) Dated 05.03.2004 : The Central Government has prohibited transmission/re-transmission of satellite TV channel namely "REN TV through Cable Television Networks throughout the country. As per the Government the channel namely "REN TV" is telecasting programmes that are against good taste or decency and are likely to adversely affect public morality.

Press Information Bureau
  • Issuance Calendar For Marketable Dated Securities

Dated 25.03.2004 : With a view to enabling institutional and retail investors to plan their investment in a better manner and also for providing transparency and stability in the Government securities market, it has been decided to continue with the system of releasing an indicative calendar for issuance of Government securities. Accordingly, an indicative issuance calendar for issue of dated securities for the first half of 2004-2005 covering the period from April 1, 2004 to September 30, 2004 has been issued in consultation with Reserve Bank of India.

  • Memorandum Of Understanding For Launching Of Market Stabilisation Scheme

Dated 25.03.2004 : The Government of India and the Reserve Bank have signed a Memorandum of Understanding (MOU) detailing the rationale and operational modalities of the Market Stabilisation Scheme (MSS). The scheme would be effective from April 2004. The main features of the MOU are as follows:

(i) The Government would issue Treasury Bills and/or dated securities under the MSS in addition to the normal borrowing requirements

(ii) The Treasury Bills/dated securities issued under the MSS would have all the attributes of existing Treasury Bills and dated securities

(iii) The Treasury Bills and dated securities will be issued by way of auctions to be conducted by the Reserve Bank.

(iv) The actual outstandings under the MSS would not exceed the ceiling or the revised ceiling at any point of time.

(v) The amounts raised under the MSS would be held in a separate identifiable cash account titled the Market Stabilisation Scheme Account (MSS Account) to be maintained and operated by the Reserve Bank.

(vi) The amounts credited into the MSS Account would be appropriated only for the purpose of redemption and / or buy back of the Treasury Bills and/ or dated securities issued under the MSS.

  • Schedule For Issuance Of Treasury Bills/ Bonds Under Market Stabilisation Scheme (MSS)

Dated 25.03.2004 : With a view to providing transparency and stability in the financial markets, it has been decided to release an indicative schedule for issuance of Treasury Bills/dated securities under MSS covering period from April 1, 2004 to June 30, 2004.

  • Reissue Of 6.2 Per Cent Government Of India UTI Special Bonds, 2010 - Press Note

Dated 24.03.2004 : Government of India have announced the re-issue of '6.2 per cent Government of India UTI Bonds, 2010' for a notified amount of Rs.328 crore. The UTI Bonds has been issued on March 24, 2004 to the Administrator of Specific Undertakings of UTI for meeting their liabilities arising on account of shortfall in assured return scheme. The UTI Bonds will be transferable and eligible for market ready forward transaction (Repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (Repo/Reverse Repo) with the RBI.

  • E-Filing of TDS Return -Clarification Issued By CBDT

Dated 18.03.2004 : The CBDT has clarified that any TDS return filed by Corporate deductors after 1.6.2003 on paper format will not be in conformity with the legal provisions. Therefore, those corporate deductors who have filed their TDS returns on paper format after 1.6.2003 are required to file the e-TDS return in electronic format in accordance with the Scheme of Electronic Filing of TDS returns, 2003 to obviate any procedural delays or any legal consequences. This clarification is being made since it has been brought to the notice of the CBDT that some corporate deductors have filed their TDS returns on paper format after 1.6.2003. The Board is of the view that after coming into effect of the amended provisions, all corporate deductors were mandatorily required to file their TDS returns in computer media only.

Supreme Court
  • Dr. B. Singh Vs. Union of India (UOI) and Ors.

Public Interest Litigation was filed without any material evidence before Hon'ble Supreme Court challenging propriety of appointment of a judge to the Punjab and Haryana High Court. The petitioner nowhere stated that he had any personal knowledge of the allegations made. He only referred to some representations and paper cuttings of news items and did not indicate as to whether he was aware of the authenticity or otherwise of the news items.

Dismissing Public Interest Litigation, Supreme Court held that high-sounding words used in petition about desirability of a transparent judicial system couldn’t turn a misconceived petition filed with oblique motives to be treated as Public Interest Litigation. Since all possible care and caution is exercised before appointment of a judge is made, sinister design of people intended to thwart prospects of a person likely to be appointed, as a judge has to be nipped at the bud. Declaring that “newspaper reports per se do not constitute legally acceptable evidence”, the Bench in a hard-hitting judgment, imposed exemplary cost on petitioner.

Apex Court further clarified that “Public Interest Litigation”, which occupy an important field in the administration of law should not be "publicity interest litigation" or "private interest litigation" or "politics interest litigation" or the latest trend "paise incomes litigation". Lexically the expression "PIL" means the legal action initiated in a Court of law for the enforcement of public interest or general interest in which the public or a class of the community have pecuniary interest or some interest by which their legal rights of liabilities are affected - Writ Petition was dismissed.

  • IPCA Laboratory Ltd. Vs. Deputy Commissioner of Income Tax, Mumbai

The question for consideration before Hon'ble Supreme Court was whether the Export house exporting self manufactured goods and trading goods are entitled to claim deduction under Section 80HHC of Income Tax Act in respect of the sum of 3.78 crores being profit from exports of self manufactured goods by ignoring the loss of Rs. 6.86 crores from exports of trading goods.

Apex Court held that if the wordings of the Section are clear then benefits, which are not available under the Section, cannot be conferred by ignoring or misinterpreting words in the Section. The opening words "profit derived from such exports" together with word "and" clearly indicate that profits have to be calculated by counting both exports. In arriving at profits earned from export of both self manufactured goods and trading goods, profits and losses in both trades have to be taken into consideration. If after such adjustments there is a positive profit, assessee would be entitled to deduction under Section 80HHC and if there is a loss he would not be entitled to any deduction. The Court clarified that the proviso to Sub-section (i) of Section 80HHC enables a disclaimer only to enable the export house to pass on deductions. It in no way reduces the turnover of the export house. In computing total income, the entire turnover is taken into account even though there is a disclaimer.

Dismissing the appeal the Bench categorically held that tax benefit for exports will be available only for those who profit from exports and not for those incurring losses meaning that tax benefits cannot be claimed on the basis of profit from one part of export business alone - Appeal was dismissed.

  • Fertilizers and Chemicals Travancore Ltd. Employees Association and Ors. Vs. Law Society of India and Ors.

The issue before the Hon’ble Supreme Court was whether the risk factors associated with setting up of sensitive plants like electricity generators can be a sole ground for their closure or relocation keeping in mind their utility to the public.

It was contended that in the event of earthquake or terrorists attack or sabotage or an air crash into the tank of ammonia plant from the nearby Airport there would be human tragedy caused on account of leakage of ammonia from the storage tank and, therefore, the said tank should be relocated. The Hon’ble Court did not find any merit in this argument and it was mainly concerned with two issues viz. structural integrity of the tank and its operations. For these issues, Apex Court appointed Engineers India Limited (EIL) to deal into the matter, it being technical in nature. EIL also recommended continuance of the tank in its present condition subject to certain measures being taken by the company which were duly taken by the company. The Court held that sabotage, attack by terrorists, earthquake etc. are all unenforceable events and it has to strike a balance between existing Utilities which exist in public interest on one hand and human safety conditions on the other hand. It was not in dispute that such plants are needed for the welfare of the Society. It was for this reason that the Hon’ble Court called for a report from EIL so that it could examine the structural integrity of the tank, its operations and the measures which are required to be taken to minimize the risk factors. It held that if the arguments of the original petitioner are accepted then no such utility could exist, no power plant could exist, no reservoir could exist, no nuclear reactor could exist.

  • Bharati Vidyapeeth [Deemed University] and Ors. Vs. State of Maharashtra and Anr.

Bharati Vidyapeeth Society, which was running several colleges affiliated to Pune University applied to the U.G.C. for treating the society as a deemed university. The Central Government on advice of U.G.C. declared various institutions of Bharati Vidyapeeth at Pune as "Deemed to be University" for the purpose of the U.G.C. Act and finally, U.G.C. issued office memorandum declaring Bharati Vidyapeeth as a Deemed University in terms of Section 3 of the U.G.C. Act. After this, Bharati Vidyapeeth as deemed University allowed admissions to be made in their respective medical, engineering and dental colleges up to the academic year 1995-1996 under the stream of the Common Entrance Test conducted by the State authority. At that stage, appellants filed a writ petition before the High Court challenging the Admission Rules to Medical, Engineering and Dental colleges for the year 1996-97 whereby the colleges run by Bharati Vidyapeeth were included in the admission proposed to be controlled by the CET authority. The High Court dismissed the writ petition. The contention of the appellant was that once the appellant institution comes under the umbrella of deemed university, it is no longer open to the State to exercise any of its powers under Entry 25 of List III inasmuch as the same are the powers exercised by the University Grants Commission under the U.G.C. Act which has been enacted in terms of Entry 66 of List I of the Constitution. At this stage the Hon’ble Supreme Court felt the need to strike a note of caution in regard to institutions which are exclusively owned by the Government and in respect of institutions which stand affiliated to the University or in respect of institutions to which either affiliation or grant is made. It held that such institutions may be controlled to an extent by the State in regard to admission as a condition of affiliation or grant or owner of the institutions. But those conditions, again if they are in respect of the institutions of higher education must apply the standard prescribed by the statutory authorities such as U.G.C., Medical Council, Dental Council, AICTE, governed by Entry 66 of List I of the Constitution. In this case as the institution in question entirely falls within the scope of the U.G.C. Act., the State Government has no role to play either in the matter of recognition, affiliation or making any financial grants to exercise powers either as condition thereto or in exercise of Entry 25 of List II.

It further held that the argument that U.G.C. Act is only for the purpose of making grants to various institutions governed by it completely ignores the provisions of the enactment for such institutions are recognised or granted deemed status for the maintenance of the standards in the institutions and for coordinating the teaching in universities which is a higher purpose than merely giving grants and with that object, the enactment is made. It was held not to be appropriate for the State to contend that even though the institution has now attained the deemed university status it is not beyond the clutches of the State in the matter of admissions of the students to such colleges as before granting of the deemed university status, the State was indeed consulted and the State conveyed its strong recommendation for grant of such status. Hence, the appeal was allowed setting aside the order made by the High Court and the respondents were restrained from enforcing their instructions for bringing the institutions of the appellants within the stream of the Common Entrance Test Examination.

High Couts

Delhi

  • Chokha Ram Vs. Union of India (UOI) and Anr.

The petitioner challenged the order of Summary Security Force Court (SSFC) dismissing him from service of Border Security Force for disobeying his superior officer's command, which amounted to an offence under Section 21(1) of the BSF Act, 1968. The grounds for challenging the order were (a) material irregularities in proceedings by SSFC specified in rules 63(1) and other BSF Rules; (b) the column left blank specifically provided for recording plea of guilty and (c) proceedings were conducted in his absence.

The court held that disobedience of oral command also constitute an offence under Sec 21 of the Act and violation of rule 63 regarding procedure for convening court is applicable to General and Petty Security Force Court and not to SSFC. Court further held that absence of petitioner's signature on the plea of guilty did not proof absence of petitioner during the proceeding as there is no specific legal requirement regarding signature of petitioner. Therefore court did not find any material irregularities in proceedings by SSFC and dismissed the petition.

Madras

  • Janaki Ammal, Yuvaraj, Thangaraj and Chandra Vs. Saminathan (died) and Ors.

This revision petition was filed against the order passed by the Appellate Authority setting aside the order of eviction passed by rent controller. The revision petitioners were the legal representatives of the deceased landlord who initiated the proceedings before the Rent Controller for eviction of the 1st respondent/tenant from the demised premises on the ground of bona fide requirement of the premises for running the dhal business run by his wife.

The court held that the petitioners had pleaded sufficiently and adduced evidence both oral and documentary to prove the bona fide requirement of the demised premises. Court further held that requirement of the premises by the landlord would also be a requirement for and on behalf of any member of his family, who was running the business in a rented premises and did not own any non-residential building in the town or city concerned. Therefore, legal heir was entitled to maintain petition and tenant could not dictate the landlord to use any of his property in a particular way for non-residential purpose.