• NATIONAL NEWS

National Housing Bank sets tougher norms

NHB has asked CEOs of housing finance companies not to encourage intermediaries but appraise projects directly. It is in the process of firming up guidelines for intermediaries, and wants HFCs to observe due diligence and good governance norms. It has increased provisioning to 2% against teaser loan portfolios.

SAT quashes SEBI fine on Bhushan group

Securities Appellate Tribunal has set aside the fine imposed on Bhushan group for violating takeover code, for failing to make a public announcement while increasing its stake in Orissa Sponge Iron in 2009. SAT found no attempt to violate the takeover regulations or compromise investor interest by the said company.

PNGRB invites bids for two pipelines, its power to issue authorization itself is under challenge

PNG Regulatory Board has invited fresh bids for laying two gas pipelines, out of which one forms part of the pipeline already allotted to RIL, but which has not been laid due to uncertainty over allocation for gas from the KG-D6 field. Whether PNGRB can issue authorization is itself under challenge in SC, and the matter is posted for hearing in August 2011.

Davos summit a 'window of opportunity' to progress Doha Round?

There is a possibility that trade ministers of select countries will endeavour to have a WTO conference in Davos on the sidelines of World Economic Forum summit in Jan 2011. They will try to see how to conclude Doha Round, which was launched in 2001 but did not progress even in Geneva conference in 2008, and remains stalled till date.

MoEF plans to address fishermens' woes through changes in Coastal Zone Regulations

Environment ministry has announced that suggestions made by fishermen have been incorporated in new Coastal Regulation Zone notification, and there are plans to permit a number of development activities like fishing jetty, fish drying yards, boat building yards, repairs etc. in 'no-development' zones.

Accused has right to seek details under RTI pertaining to own case, rules Delhi HC

Delhi HC has upheld the order of Central Information Commission,  directing Delhi police to supply information relating to a criminal case to the accused person under RTI, even after the conclusion of the trial. Police had argued that only a trial court can grant permission during trial for supplying case diaries to the accused.

Uttarakhand HC quashes permission for change of land use, orders return of disputed land

Uttarakhand HC has set aside permission for change of land use from industrial to residential, and asked the DM to take back possession of land allotted to Citurjia Biochemicals in 1970, as per terms of the original agreement. The court also directed government to order an inquiry.

Bombay HC orders attachment of property to enforce arbitration award

Bombay HC has ordered attachment of two properties owned by Sanjay Dutt, as the actor failed to settle the Rs 2 Cr arbitration award pronounced by Indian Motion Pictures Producers' Association in Jan 2010, in a financial dispute between him and a producer. In October 2010, IMPPA had moved the court for a decree.

Central government to introduce Bills to ensure national floor level of minimum wage

Minister of State for Labour has said that central government intends to amend Factory Act, Mines Act, Minimum Wages Act and Contract Labour Laws, by introducing Bills in the budget session of Parliament, to ensure a national floor level of minimum wage.

Parliamentary Committee suggests review of SEZ exemptions

Parliamentary Standing Committee on Finance has criticized government for not reviewing loss to the exchequer due to tax exemptions given to SEZs. SEZs enjoy 100% tax exemption for first 5 years and graded exemption thereafter, while SEZ developers enjoy 100% tax exemption on profits for 10 years.

DTAA with Mauritius under review

Alarmed by the quantum of funds being routed to the country through Mauritius, and the loss to the exchequer due to loss of tax revenue, Finance ministry is reportedly in the process of reviewing its DTAA agreement with Mauritius.

Civil Liability for Nuclear Damages Act a roadblock in power sector cooperation

India is partnering with Russia to make Indian state run entities strategic partners in oil & gas exploration sector in Russia. However, cooperation in nuclear power is likely to be hampered by Russia's reluctance to accept supplier liability as stipulated in nuclear liability law.

Goods and services hired for commercial purposes outside the purview of Consumer Protection Act, rules SC

SC has held that goods and services hired for commercial purposes can't be the subject matter of a complaint under Consumer Protection Act. It set aside the judgment of National Consumer Disputes Redressal Commission, in a case lodged by Neutral Glass against Birla Technologies over software development related dispute.

SC upholds CESTAT ruling on SSI exemption

Supreme Court has dismissed the appeal of Parle Bisleri Ltd against CESTAT order in an excise case, also involving Parle Exports Ltd and Parle International Ltd. SC agreed with CESTAT order that fragmentation of manufacturing process among the three companies was a mere ploy to claim exemption available to small scale industries.

SC sets aside Bombay HC ruling in land acquisition case

Supreme Court has set aside a Bombay HC order, stopping work on a portion of land in Mumbai, which was acquired by a telecom company in 1925, but is now in possession of Tata Communications. While some ex-owners are seeking higher compensation, SC has ruled that it should be paid by the authorities in accordance with law.

Pipavav consortium files petition in Bombay HC against ONGC

A consortium led by Pipavav Shipyard has filed a petition against ONGC in the Bombay HC, for denying it a contract to carry out survey, design and related work for six well head platforms. The contract went to a foreign bidder, despite a 'price preferential clause' applicable for domestic bidders.

TDSAT rejects plea of Tata Tele Services

TDSAT has rejected the demand of CDMA operator Tata Tele Services to direct DoT to cancel additional spectrum allocated to GSM operators beyond the permissible limit, as stipulated under the licence conditions. As per TDSAT, Tata Tele failed to establish that act of DoT was discriminatory.

NALSA moots pan-India legal aid clinics scheme

National Legal Services Authority has approved a scheme of pan-India legal aid clinics, which will function from panchayat offices. Staffed with lawyers & paralegal workers, these clinics will try to solve disputes to stop them from reaching courts, apart from assisting villagers with preparing applications for official work.

SC directs private schools in Rajasthan to set aside seats for underprivileged children

In an interim order on the appeal filed by Society for Unaided Private Schools against a Rajasthan HC verdict, Supreme Court has stipulated that private unaided schools in Rajasthan should set aside 25% seats for socially and economically disadvantaged children. SC also directed that no weightage should be given to parents' education.

Delhi Police Bill might be tabled in budget session

Home secretary has said that Delhi Police Bill might be tabled in Parliament in the budget session. The Bill is expected to usher in long overdue police reforms, and would be a model for other states to follow.

NGO challenges Delhi admission policy in HC

NGO Social Jurist has filed a Public Interest Litigation in Delhi HC, challenging the nursery admission policy of Delhi government. The PIL highlights widespread violation of Right to Education Act 2009, and blames the Delhi government for giving a free hand to the private schools to formulate their own admission criteria.

Delhi HC gives go ahead to DDA to encash bank guarantee of CWG village builder

Delhi HC has quashed the plea of CWG village builder EMAAR MGF, to stop DDA from encashing the bank guarantee worth Rs183 crores as damages, for not completing construction of Games village on time. However, the court ordered status quo, as the company indicated that it would appeal to a larger bench.

Export of onions suspended till January 15

Government on Dec21, 2010 suspended the export of onions till Jan 15, 2011, to overcome domestic shortage and check the rising prices. Due to the unseasonal rains in Maharashtra and Gujarat destroying the crop, the country is facing a severe crunch of onions, leading to escalating prices.

Security concerns delaying 3G rollout

The government might ban telecom companies from offering non-voice 3G mobile services, unless they come up with a plan so that these facilities can be tapped live, to address concerns of security agencies. Telecom minister has been meeting CEOs of key telecom operators to discuss a solution.

Change in debt recovery laws on the anvil

Finance ministry is looking at amending Debt Recovery Bill and SAFESI Act, to accord precedence to secured creditors, like banks, over government dues, during debt recovery. SC had suggested such provisions in a 2009 judgment, to bring clarity and prevent long drawn litigation in cases where pending government dues like sales tax dues etc. prevent refund of loans to banks.

A ray of hope for cash strapped MFIs

Indian affiliates of Grameen Foundation of Bangladesh are looking at raising funds for providing guarantee for Micro Finance Institution loans, to prompt banks to extend funds to Micro Finance Institutions. To be eligible, MFIs have to meet certain social and financial criteria, to demonstrate that they have been true to their mission.

IRDA sets up committee to overhaul 'third party cover' premia

Insurance Regulatory Development Authority has set up a committee to look at the 'third party cover' pricing mechanism for commercial vehicles like trucks, and suggest ways to reduce losses of insurance companies, which are bleeding from rising claims. Committee will also examine the possibility of creating a 'declined pool', where the liabilities are shared for vehicles which nobody wants to insure.

No service tax demand on Jetlite (ex-Sahara Airlines), rules CESTAT

CESTAT has rejected tax department's demand for service tax on Jetlite (erstwhile Sahara Airlines), for carrying 'SAHARA' logo on its tickets under agreement with a group company. It has ruled that brand promotion can't be taxed as 'Business auxiliary Service', for period prior to the time when brand promotion service became separately taxable.

New quality mark for goods in the offing

A new quality mark for goods is slated for launch in March next year, and will become visible on all goods from Oct-Nov 2011. The mark is being introduced to help the customers in taking informed decision while purchasing a product.

TDSAT rejects MSM plea in dispute with NDTV

TDSAT has rejected the plea of channel distributor MSM Discovery to restrain NDTV from terminating marketing and distribution agreement with it, and entering into contract with a rival. It said MSM could claim damages for breach of contract, if the contract was wrongfully terminated.

'Social cost' of worker welfare impacting tea industry

Tea industry has requested both central and state governments to include tea garden workers under Bharat Nirman welfare schemes, to enhance the welfare of these workers and, at the same time, share the burden of expenditure incurred by tea gardens on account of social costs.

Gas transport rates may decline

PNG Regulatory Board has proposed amending the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations 2008, to allow gas transport companies to charge a lower rate than the approved rate. The move is to level the playing field, as newer companies that are preparing to shortly enter the sector may offer lower prices, to the disadvantage of established companies.

Aadhar number becomes valid document for KYC norms

To promote financial inclusion of the poor, finance ministry has recognized Aadhar number issued by Unique Identification Authority of India (UIDAI) as a valid document to satisfy KYC norms for opening bank accounts. The account opening forms will henceforth incorporate space for Aadhar number.

Environment ministry gets tough with Kerala Cricket Association

Environment ministry has reportedly issued a showcause notice to Kerala Cricket Association, for allegedly destroying mangroves in Kochi for constructing a cricket stadium.

DoT to impose fine on non compliant firms

DoT has said that it will impose a fine of Rs 5 Lacs on telecom infrastructure firms, if their base transceivers are found to have not received environment clearance by Nov 15, for being compliant with the ICNIRP guidelines on radiation. Government had earlier extended the certification deadline.

DoT probing shareholding tangle

DoT has sought details of shareholding structure of telecom company Swan from the Ministry of Corporate Affairs, to probe CAG report that the said company acted as a front for a bigger telecom company during 2G spectrum allocation. As per existing rules, no operator can hold more than 10% in another operator in the same circle.

EGoM meet on diesel rate hike deferred

The Empowered Group of Ministers (EGoM), that was supposed to meet on Dec22 to decide on diesel and LPG cylinder price hike, has deferred decision on the issue.

Ministry of Statistics trying to improve quality of statistical data

Ministry of Statistics and Programme Implementation, which is responsible for coordination of important statistical activities in the country, is looking at improving data quality after receiving criticism. Currently, data is collected by various agencies, leading to lack of uniformity in statistical standards and technology used.

Delhi HC stalls move to increase power tariff

Delhi HC has expressed displeasure over Delhi Electricity Regulatory Commission sending advice for power tariff hike to the Delhi government, even when a related PIL is pending in the court. Delhi government had reportedly accepted DERC proposal to increase electricity tariff in the city. The tariff announcement had been pending for a long time, as the government had apparently not acted on the advice of the previous DERC chairman who had actually recommended a reduction in rates.

The additional solicitor general has now assured the court that new tariff structure will not be implemented without the court's approval.

Doctor to get compensation from Australian government

A doctor of Indian origin, who was charged with supporting a terrorist organization and sent to prison in Australia in 2007, but later cleared of the charges, has received a 'substantial' amount as compensation from the Australian government, for interruption of professional work, loss of income and emotional distress.

CWG Organising Committee to lose tax exemption if IT audit detects wrongdoing

Income Tax department has ordered a special audit of the accounts of the CWG Organising Committee, which is registered under the Societies Registration Act 1860. The IT audit will look at any possible misuse of Organising Committee's income or property by its managers or officials that might impact tax exemption enjoyed by it.

Thailand looking forward to comprehensive bilateral trade pact with India

Thailand, which was the first ASEAN country to ink a limited FTA with India back in 2004, is now keen to have a full fledged comprehensive bilateral agreement covering goods, services and investment. It is also looking to develop an international highway from India to Thailand, to facilitate trade.

Bombay HC directs environment ministry to issue final Lavasa order by Jan 10

Bombay HC has asked environment ministry to issue final order on Lavasa township by Jan 10, 2011. Court has also directed the state government to form a three member committee, which should visit the site, and submit its report to the court before Jan 27, when hearing on Lavasa petition will resume. Earlier the court said that it can't decide on Lavasa's writ petition in isolation, and all cases pertaining to related matters like displacement of people, rehabilitation, effect on Pune's water supply etc. need to be clubbed.

SC panel visits dam for crucial assessment

SC appointed Empowered Committee on Mullaperiyar dam recently visited the site to assess first hand the safety and stability of the 113 year old dam. Kerala has said that the dam is unsafe and poses risk to people living downstream, while Tamil Nadu has always refuted this claim.

Planning Commission asks finance ministry to facilitate creation of infrastructure debt funds

Planning Commission has suggested setting up of multiple infrastructure debt funds to finance long term projects. Success of such funds requires infusion of foreign and domestic capital, which in turn requires changes in RBI and SEBI regulations, as well as relaxing rules for external commercial borrowings and withholding tax.

Environment minister clarifies position on emission cuts

Environment minister Jairam Ramesh has clarified that he has at no point committed India to legally binding emission cuts at Cancun, or a legally binding agreement. He said he called for commitments in 'appropriate legal form', and not legally binding form.

Bombay HC proposes handing over part of the building to defence ministry

Bombay HC has proposed that the first 12 floors of Adarsh housing society should be handed over to defence ministry, and the rest be taken over by the court receiver, as land records presented in court clearly show that the land belongs to defence, and not Maharashtra revenue department, as claimed.

Government slashes import duty to rein in onion prices

Government has slashed the import duty of 5% and countervailing duty of 4% on onions, to mitigate the effect of rising prices. The spike in onion prices has occurred concurrently along with those of two other important commodities, milk and petrol, whose prices have also gone up.

Delhi HC gives government 6 weeks to defuse live shells posing danger to residents

Delhi HC has directed the government to defuse within 6 weeks unexploded bomb shells lying in Tughlakabad inland container depot for the last 5 years. The decision came on a PIL by Social Jurist, which claimed that the shells were part of metal scrap imported from Iraq, that landed up in Tughlakabad, but neither customs, nor home ministry or railways were willing to take responsibility and were, in fact, passing the buck.

Goa governor summoned for refusing information under RTI

Goa state Information Commission has reportedly summoned the governor to appear before the commission on Jan 4, 2011. The move came after a social activist was denied information under RTI Act by the governor's office, claiming that the governor is not a 'public authority' under the Act.

Rajasthan HC stops special reservation for Gujjars, as state government fails to furnish data

Rajasthan HC on Wednesday stayed the operation of a 2008 Act, giving 5% reservation to special backward classes and 14% to economically backward classes in state educational institutions and services. The bench observed that, as per Supreme Court direction, quota can be hiked only if backed by quantifiable data, which the government had not furnished in the instant case.

Government looking at amending Prasar Bharati Act

Government is planning key amendments in Prasar Bharati Act, to maintain an equitable division of power between the CEO of Prasar Bharati and I&B Ministry. It wants to maintain the autonomy of the public broadcaster, but is wary of the time involved in taking action against errant CEOs, as happened recently.

HRD ministry sets up panel to probe functioning of fake institute

Under direction from Central Vigilance Commission , Ministry of Human Resource Development has set up a three member committee to investigate the allegations of a fake institute being run by certain faculty members of IIT Kharagpur. The panel consists of key officials from other IITs.

Planning Commission rejects scheme to boost fertility rate of Parsis

Planning Commission has reportedly scuttled a scheme proposed by minority affairs ministry, to tackle the dwindling population of Parsi community and pay medical benefits to boost their fertility rate. The government has been told not to meddle in 'social' issues of religious communities, as it might set a precedent.

Jalan Committee report raises debate

Government is examining the Bimal Jalan Committee report, to see if its recommendations could hamper growth of securities market by stopping stock exchanges from raising capital, and restricting them from holding stakes in depositories. The Committee had based its recommendations on the potential conflict of interest between the regulatory and commercial nature of their functions.

States urged to lower tax on natural gas to spur consumption

Petroleum and Natural Gas Regulatory Board Chairman has suggested that state governments should lower tax rates on natural gas to encourage its consumption. He also said that bidding process for pipelines on certain routes was over, and companies would get 36 months for implementation once their bid is authorised.

Either you do it or let someone else do it, says gas regulatory board

PNG Regulatory Board will give a formal hearing to Reliance to ascertain reasons for delay in 1100 km Kakinada-Haldia pipeline, whose approval was given in 2007. RGTIL was apparently looking for more gas before investing in the pipeline. As per rules, PNG Regulatory Board can now cancel authorization or impose penalty, as work is not over within 36 months.

Toll tax on commercial vehicles entering Delhi set to be raised

Standing Committee of Municipal Corporation of Delhi has approved a toll tax hike on commercial vehicles entering the limits of Delhi from May next year. Toll tax rates were last increased in the capital in May 2008.

Planning Commission wants environment ministry to show flexibility

Planning Commission has said that there should be flexibility in defining 'no go' areas, where mining activity is prohibited. The coal ministry has recently sought cabinet approval, for mining to be allowed in 90% of coal blocks, which are currently labelled as 'no go' areas by environment ministry.

Aviation working group to submit first report by December 30

The working group of Civil Aviation Economic Advisory Council, formed to protect consumer interests, will submit its first report by Dec 30, 2010. The group is looking at the method of fare structuring followed by domestic airlines, as well as the manner in which these fares are disclosed to the public.

Department of Posts wants to use modern costing techniques to price its services

Department of Posts is looking to revamp pricing for all its products and services, to enable the department to price its services competitively. It is planning to engage a consultancy firm to evolve a modern costing system, for each product and service separately, which in turn will serve as a basis for pricing.

Efforts to secure cyber space gain momentum

All government websites have reportedly been asked to adhere to cyber security guidelines, as an audit has revealed their vulnerability to cyber attack. As per the guidelines, Ministries, Departments, PSUs & autonomous bodies are all supposed to get regular audit of their IT infrastructure carried out by authorized vendors as a preventive measure.

Banks favour MFI loan restructuring

RBI is examining a proposal from banks to allow restructuring of loans given to the MFI sector. Banks have suggested interim measures to reduce the gap for MFIs, between their recoveries and payments to banks, till Malegam Committee submits its report. Loans to MFIs are treated as priority sector lending, and banks are keen that such loans should not become non performing assets.

Finance ministry ready to bear part of oil subsidy burden

Finance ministry has committed to the oil marketing companies that it is ready to bear one-third subsidy burden on account of retailing losses, in the current fiscal. While petrol prices were deregulated, diesel, LPG & kerosene are still sold below cost, and add to the losses of oil marketing firms. However, government's commitment can help oil marketing companies to launch their IPOs.

Deferred payments on PPP projects could pose a headache later

Public Private Partnership projects awarded to private sector developers, which entail deferred yearly payments by the government for many years to come, may henceforth be disclosed in the budget document. Such projects may be brought under fiscal responsibility framework, so that their payments do not add up to a big burden in the future.

Delhi HC orders paternity test for ND Tiwari

Delhi HC has asked former Andhra Governor ND Tiwari to participate in a paternity test, to examine the claim of 31 yr old Rohit Shekhar that ND Tiwari is his biological father. Rejecting Tiwari's opposition, the court said that it cannot disregard the right of a child to know his or her biological father.

Bombay HC sentences advocate to four month jail term for contempt of court

Bombay HC advocate NB Deshmukh has been held guilty of criminal contempt of court, and sentenced to four months' simple imprisonment. Upset by his client's case pending for 15 years, in 2008 he had disrupted proceedings in another case, and justified that he was venting 'purely natural feelings'.

SEBI imposes ban for misleading investors

SEBI has banned former chairman of Pyramid Saimira Theatre from dealing in securities and from becoming a director in any listed company for 10 years, for fudging company's accounts, misleading investors and making preferential allotment to himself without any inflow of funds to the company.

Competition Commission examining if cartelisation was behind recent spike in airfares

Competition Commission of India has asked civil aviation ministry to share with it information on spike in domestic airfares in November. Based on the information, it is going to examine if there was cartel like behaviour and possible violation of competition law behind the sudden escalation in ticket prices of all the airlines.

RBI amends housing loan norms

RBI has amended the rules governing home loans. Increased margin of 20% for loans above Rs 20 Lacs, increased asset provisioning for loans given by banks at concessional/ teaser rates, increased risk weightage of loans above Rs 75 Lacs are some of the new provisions.

FSDC expected to have its first meeting towards month end

Financial Stability and Development Council is expected to have its first meeting on Dec 31, 2010. Apart from Finance Minister, chairmen of RBI, SEBI, IRDA & PFRDA are expected to be part of the council. FSDC would look at imparting stability to the financial sector, and facilitate dispute resolution among regulators.

Joint committee suggests steps to ensure compliance of environment ministry's 2009 order

A draft report of the joint committee of tribal affairs and environment ministries has suggested that August 2009 order of environment ministry be incorporated into rules of Forest Rights Act. The order requires gram sabhas to certify that there is no objection to diversion of land.

Delhi HC asks AAIFR to conduct final hearing in NTC Mill land case

On a petition from Indiabulls, Delhi HC has set aside an order passed by Appellate Authority for Industrial and Financial Reconstruction, which had directed the parties involved in the auction of a land parcel by NTC at Worli in Mumbai to maintain status quo, on a petition from Lodha Developers. Lodha had lost the bid by a marginal amount. However, the court directed AAIFR to fully consider all the issues raised by Lodha Developers at the final hearing.

International certification can boost exports

Coffee Board is trying to push certification of Indian coffee to help domestic planters realize higher prices, as Indian coffee is considered premium. Domestic planters are increasingly seeking certification from international bodies, to procure an eco friendly tag, which helps while selling in international market.

IIFCL to guarantee long term debt of infrastructure companies

State run India Infrastructure Finance Company Limited is awaiting government approval for acting as guarantor to long term bonds issued by infrastructure companies. The guarantee is expected to help companies executing long gestation projects to attract investment from insurance and pension funds.

RBI's discussion paper on new banking licences elicits diverse responses

Banks have reportedly opposed grant of new banking licences to corporate houses, in their comments to RBI's discussion paper. They also favour higher capital norm of Rs 1000 Cr to 2000 Cr for banking entities. NBFCs and MFIs have recommended lower capital norms for new banks, as they feel big size banks cater to the wealthy and do not promote financial inclusion.

Chhattisgarh court sentences Dr Binayak Sen to life term

Civil rights activist Dr Binayak Sen has been found guilty of sedition and sentenced to life term by a court in Raipur,Chhattisgarh. On May 14, 2007, Dr Sen, was arrested under the provisions of the Chhattisgarh Special Public Security Act, 2005, (CSPSA) and the Unlawful Activities (Prevention) Act, 1967. The state police claimed he was helping naxals. Dr Sen was a member of PUCL and won prestigious Jonathan Mann award for Global Health and Human Rights in 2008.

Company Law Board restores power of MD of The Hindu

CLB has set aside the decision of the board of The Hindu, to reallocate the powers of then MD N Murali in March 2010. CLB said that the act was without notice and vindictive, and restored the position prevailing prior to March. It has also directed the shareholders and board of the company to decide on succession and corporate governance issues without delay.

Government keen to review Essential Commodities Act

Government has formed a working group to review Essential Commodities Act, to reduce the differential between wholesale and retail prices. Options include authorising state governments to fix ceiling prices or profit margins, creating barrier free national market through e-portals, promoting cold storage etc.

Final order on mediation proceedings should not discuss offers and counter offers, rules SC

SC has clarified that mediation proceedings in litigation are confidential, and should not be disclosed even in the final order. In case mediation is not successful, the mediator should not note down anything that was discussed or proposed, but just forward the report to court with a single sentence.

SEBI challenges RTI order

SEBI has petitioned Bombay HC against a Central Information Commission  order, which required it to disclose under the RTI Act, what it did on a complaint received against Reliance over the issue of sale of 120 mn shares in the year 2000. CIC had also directed SEBI to disclose the findings of Justice Srikrishna on its report.

Sale of packaged software exempted from service tax

In order to address the problem of double taxation, Central Board of Excise and Customs has exempted packaged software from 10% service tax, provided the excise duty has been paid on manufactured or imported goods. Since such software is sold with a licence, till now it was taxed as both goods and service.

Chief Information Commissioner asks RBI to formulate disclosure policy

CIC has passed an order asking RBI to disclose its pre-board meeting agenda, as well as minutes of the meeting, and formulate a disclosure policy by Feb 2011. RBI had earlier refused to share information about its complaint handling procedure against banks and NBFCs to an applicant, citing confidentiality of matters that are discussed in its meetings.

Delhi HC quashes RNI order regarding circulation audit

An order of the Registrar of Newspapers, which made it compulsory for newspapers to get circulation data verified by independent CA firms in its own panel of auditors, at fees as per its own guidelines, has been set aside by the Delhi HC.

Telecom companies may not meet deadline for curbing unwanted calls

TRAI's recommendations to curb unwanted telemarketing calls may not take effect from Jan 1, 2011, as the requirement that telemarketing companies registered with DoT should do so again with TRAI has created ambiguity, and the technical and network upgrade by telecom companies may also not be over before Jan 1.

Finance ministry clarifies on excise duty exemption

Finance ministry has clarified that in case of goods manufactured in HP and Uttarakhand, excise duty exemption would continue to be available as per notification dated 10.06.2003, even when a unit manufactures a new product by installing new plant or machinery after the cut off date.

Final nod for big projects only after environment impact of all elements clear

Environment ministry will now ask for a common Environment Impact Assessment report from large integrated projects with multi sector components. Developer will have to submit full details to all the sectoral expert committees, and final clearance will be granted only after each has submitted its recommendations.

DGFT blacklists agencies for not guarding against imports of hazardous metal scrap

DGFT has blacklisted 12 agencies who issue pre-shipment inspection certificates on its behalf to import shipments containing items like metal scrap, to safeguard against hazardous goods being imported. These agencies were found to be either subcontracting their work or issuing certificates without physical verification.

Delhi HC upholds CIC order asking DMRC to reveal failed pillar design

Delhi HC has asked Delhi Metro Rail Corporation, to reveal under RTI, the design of the Metro pillar no. 67 which crashed in Jul 2009, killing several people. DMRC had refused information under the garb of protecting intellectual property rights, and had said that disclosing the design could lead to copyright infringement.

Delhi HC asks government to regulate employment conditions of domestic workers

Delhi HC has asked Delhi government to enact a legislation to safeguard the interests of domestic workers and regulate their working. The verdict came in response to a PIL filed by Bachpan Bachao Andolan, alleging that domestic help 'placement' agencies are indulging in trafficking of women & children.

INS Khukri survivor moves Armed Forces Tribunal citing error in records

AFT Chandigarh bench has issued a notice to Ministry of Defence, on a petition from a survivor of INS Khukri that sank during Indo Pak war 1971. The petitioner has said that there are errors in the records about the reasons why Khukri sank, and surprising lack of counter attack by INS Kirpan.

Jharkhand government planning water tax to enforce conservation

Jharkhand government is planning to introduce water tax on those who collect water from municipal taps in certain towns for domestic use. The move is being justified citing fund requirement for maintenance of municipal taps, as well as need to inculcate water conservation habit in the general population.

Sugar futures relaunched

Trade in sugar futures was relaunched on Dec 27, 2010, after a one and a half year hiatus. The ban imposed in May 2009 due to rising prices had lapsed in September this year, but Forward Markets Commission was waiting to assess expected production output before giving permission for relaunching the futures.

Welcome move by Brihanmumbai Municipal Corporation to disclose information on new projects

BMC proposes to shortly start displaying all information on clearances for new buildings in Mumbai on its website. Information will help potential buyers ascertain details on land, occupation certificate, NOC received and status of other necessary approvals.

Anti dumping duty on cheap equipment imports for telecom sector

India has imposed anti-dumping duty on import of IT equipment used in telecom sector to guard against cheap Chinese and Israeli imports. The duty on 'synchronous digital hierarchy transmission equipment' ranges from 3 to 266%, and will be valid for 5 years w.e.f 08.12.2009.

RBI mandates banks to add one more password for phonebanking transactions

To prevent misuse of cards, RBI has made it mandatory for customers to get a one time password (OTP) for phone banking transactions from Jan 1, 2011. Customers will need to generate a separate OTP for each IVR transaction, which will be sent only to their registered no. and email address.

No SSI benefit if name of another person added to logo, rules SC

SC has ruled that in order to avail excise benefit for SSIs, the manufacturer must prove that its product is not associated with any other person. It set aside the duty benefit allowed by CESTAT to Ace Auto, which added TATA brand name to its logo, on the clutch plates it supplied to TATA.

SC allows levy of higher duty

SC has allowed revenue department to charge a higher customs duty, where the nature of imports turned out to be different from what the importer had declared. In the instant case, a chemical examiner had found that the cargo contained palm fatty acid distillate, and not crude palm oil as declared by the importer Jocil. Customs duty was then imposed accordingly.

Green Tribunal Act challenged in Madras HC

A writ petition has been filed in Madras High Court, challenging the recent Green Tribunal Act 2010. The Act provides for a tribunal to examine environment related cases.

Bombay HC passes interim order for Bigg Boss to continue at 9pm slot

A vacation bench of Bombay HC has temporarily allowed the telecast of 'Bigg Boss' to continue at 9pm, provided the channel does not screen obscene gestures by participants, or dialogues which need to be 'beeped'.

Lokayuktas protest proposed dilution of powers

Reacting to the report of administrative reforms commission, several Lokayuktas have reportedly sent off protest letters to the union law minister, against the proposal to dilute the functions and powers of the Lokayukta. They contend that such a move will lead to operational difficulties.

Amnesty International says Dr Sen's conviction will intimidate human rights defenders

Amnesty International has described Dr Binayak Sen as 'prisoner of conscience', and said that laws under which he has been convicted are 'impermissibly vague and fall well short of international standards for criminal prosecution'.

Orissa government challenges rules that led to withdrawal of Vedanta clearance

Orissa government has sought to challenge rules that require review of implementation of Forest Rights Act at the project site before the project is granted clearance, and permission from village council for diversion of forest land. It has written to the tribal affairs ministry questioning validity of such rules.

States want flexibility in GST in times of economic exigencies

The EGoM on GST has reportedly suggested bringing constitutional amendments for creation of a sub-committee under GST Council, and a GST Disputes Settlement Authority later, to ensure smooth transition to GST. EGoM has also demanded flexibility for states in times of natural disasters.

NPPA looking at disparity in prices of Indian vs. imported drugs

National Pharmaceutical Pricing Authority has reportedly asked some foreign drug firms to share the cost of manufacturing and other details of certain medicines which are under price regulation in India. The move comes on complaints that while the prices of Indian formulations are capped, those of imported drugs can be inflated based on manipulated landed cost.

Government working to bring more transparency in MPLAD scheme

To ensure better utilization of funds under MPLAD scheme, the government is proposing to introduce measures like inspection by third party before final payment to the contractor is released, and display of details of each sanctioned scheme at the district admin office.

Service guarantee on new electricity connection in Delhi

Delhi has signed a Service Level Agreement with power discoms, which means the discoms have agreed to provide a simple electricity connection within 30 days of filing application. In case of SLA, the onus of delivery is on the officer-in-charge, and in case of failure, he can come under scrutiny.

Visibility norms relaxed to curb flight delays

Aviation ministry has relaxed visibility norms to 150 m for large aircraft, and 125 m for smaller aircraft to facilitate flight operations and reduce delays due to fog. However, planes that are not compliant with category 3B cannot land before 10am.

RBI refusal to facilitate Iran oil payments puts Indian importers in a quandary

RBI has refused to facilitate payments for crude oil imports from Iran, by mandating that payments for imports should be settled outside the Asian Clearing Union mechanism. The move rules out central banks, and will force Indian companies to find alternative channels and banks to make payments.

Division bench of Gujarat HC to hear Vodafone appeal

Gujarat HC has admitted the appeal of Vodafone Essar Gujarat Ltd's, challenging the dismissal of the proposed demerger scheme for transfer of passive assets to Vodafone Essar Infrastructure Ltd. A division bench will further hear the matter on Jan 18, 2011.

Notice to DRL over nitrogen gas leak

Directorate of Factories has reportedly decided to issue a notice to Dr Reddy's Lab, whose Bollaram unit is under investigation for nitrogen gas leak. The unit was sealed after two deaths were reported from the spot due to the gas leak.

HP government wants its land back

Himachal Pradesh government is reportedly contemplating moving court to reclaim the land allotted to Indage Vintners to establish a wine making unit in HP using local produce. The company has neither put up the project, nor returned the land, even 10 years after signing the agreement and getting allotment.

Madras HC pulls up Department of Employment & Training for terminating service of an employee

Madras HC has held that Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 prohibits forced exit of employees who acquire illness during their employment. Court ordered payment of all service benefits to C Narayanan, whose service was terminated for 'mental dementia and mood disorder'.

Bar coding for liquor bottles in the offing

Delhi government is all set to implement serialized 2D bar coding on liquor bottles, to check their smuggling and strictly enforce sales regulations.

Separate committee to probe air accidents

Civil aviation ministry is planning to set up a Committee of Investigations to conduct investigation into serious air accidents. The committee will have a pool of independent safety experts from the industry. DGCA will probe only incidents of minor nature, and not all the accidents, as is done now.

Delhi HC upholds right of state to refuse disclosure of 'confidential and sensitive' documents

Delhi HC has rejected petitions of former officials Jarnail Singh Kalra & Salam Singh Rathore, saying that state can refuse to give copies of documents which are considered sensitive and confidential, to an accused, even if the accused is charged under Official Secrets Act based on the recovery of those very documents.

India might approach WTO over proposed US import levy

India is reportedly mulling the possibility of approaching the World Trade Organisation over the recently passed James Zadroga Act 2010, which will impose a 2% levy on goods and services imported into the US w.e.f. Jul 2011. Along with the visa fee hike, the import levy can adversely impact India's exports.

MCA orders compulsory cost audit for select companies

MCA has asked select companies from sectors like manufacturing, mining and services to file their cost audit reports for year ending March 31, 2011, u/s 233B of Companies Act. Cost data furnished by the companies can help the government examine their costing structure, pricing policy & profit margin.

Government to take a call on captive coal blocks in January

Government had issued notices to around 82 companies which had not developed captive coal blocks allotted to them within the stipulated time frame. Most of these companies have sent in their replies, which the government is studying, and final decision will be taken on the matter in Jan 2011.

Public Provident Fund Scheme amended

Finance ministry has amended Public Provident Fund Scheme, to make it mandatory for Hindu Undivided Families which have opened PPF accounts to close their accounts at the end of 15 years. Those HUF accounts which have completed 15 years will compulsorily be closed at the end of current financial year. 

Russia's competition watchdog might okay Pepsico deal

Russia's Federal Anti-monopoly Service is expected to give a go-ahead to the proposed plan of Pepsico to buy juice and dairy company Wimm-BillDann, as it perceives no anti- competition effect from the deal.

Bangladesh protests Indian specifications for its jute products

Bangladesh has opposed NT barriers on its jute exports to India, including imposition of jute batching oil order and compulsory labelling of 'Made In Bangladesh' tag on its jute bags. India maintains that jute goods need to conform to Jute Packaging Materials Act 1987 and BIS specifications.

TRAI seeks opinion on proposed amendments

TRAI on Monday issued a consultation paper to seek comments on proposed amendments to interconnection regulations. The amendments are required to address disputes between broadcasters and cable TV operators, which erupt due to the ineffective system of negotiated subscriber base.

• INTERNATIONAL NEWS

Chinese export restraints become a sore point with US

US Trade Representative office has said that China has ignored US requests to end export restraints on rare earth elements, which are essential for manufacture of many high tech products, and are found in abundance in China. Drop in export volumes has hit trade ties with US and Japan.

UAE reforms work permit system

UAE is reported to have introduced a new work permit system, which allows foreign workers to change their jobs after two years without facing a mandatory 6 month ban. Only those who have served their previous employer for two years will be able to take advantage of the new system.

Telecom equipment major ready for settlement

Alcatel Lucent has reportedly arrived at a settlement in response to US charges that it paid bribes to government officials in Asian and Latin American countries for winning supply orders for telecom equipment. The settlement is believed to be upwards of $137 million.

Countrywide Financial sued over mortgage debt losses

Allstate Corp has filed a lawsuit in a Manhattan federal court, alleging that Countrywide Financial misled it into buying mortgage debt worth more than $700 million, which was touted as safe, but ultimately resulted in huge financial losses.

Lawsuit over electronic book reader

Largest US bookseller Barnes & Noble is facing a lawsuit from Spring Design, over allegations that it copied screen design for its electronic book reader. The petitioner has accused the bookseller of misappropriating trade secrets, breach of contract and unfair competition.

Oil spill compensation fund launches 'quick pay' scheme

BP Plc has reportedly set up a $20 billion compensation fund to settle claims arising from losses related to offshore oil spill near US coast. The fund recently announced a 'quick pay' option, to expeditiously settle claims of victims who agree not to pursue additional claims, and has already started the settlement process.

US district judge awards 6 year jail term for insider trading

A US district judge has awarded 6 year prison term to a money manager convicted in an insider trading scheme that generated $7 million in illegal profits. The honourable judge added that it's a crime that damages the national economy, and it' important to send a message through an exemplary sentence.

US states start regulating dating sites, mulls changes to liability laws

Two US states, New York & New Jersey, have reportedly begun regulating internet dating sites, after receiving numerous complaints of convicts or sexual offenders luring their victims through such sites. Some legal experts have asked for changes to the liability laws that protect such sites.

DREAM Bill defeated in US senate

Development Relief & Education for Alien Minors Bill was defeated in US senate on Dec 19, 2010. The Bill sought to offer citizenship to undocumented immigrants who arrived in the US before they were 16, have lived in the US for 5 years, and have either attended college or served in US armed forces.

UK HC strikes down temporary cap on non-EU immigrants as unlawful

UK HC has declared temporary cap on skilled workers from outside European Union as unlawful, on the ground that UK Border Agency did not follow proper parliamentary procedure when it reduced non-EU immigration in the country by 5%. Petitioner EECA had contended that it would impact staffing requirements of the 'care' sector for medical workers.

US administration sues companies over oil spill

Units of BP Plc and some other companies have been sued by the US administration over violating environmental laws in connection with the largest oil spill in US history. The lawsuit has been filed in a federal court in New Orleans, over the spill caused by the explosion of Deepwater Horizon rig.

South Korea taking policy measures to check capital outflows

South Korea is planning to impose a levy on banks' foreign exchange borrowings, and tighten rules on forex derivatives, to check capital outflows in case of escalation in military tension, which might destabilize the economy. Short term debt will be subject to a higher levy than long term loans, due to higher risk of capital flight that it poses in times of conflict.

Drug makers sue Sun Pharma over osteoporosis drug

The US arm of Sun Pharmaceuticals has been sued for patent infringement of once a month dosage of generic version of Actonel, by patent holder Roche and manufacturer Warner Chilcott. The suit has been filed in the US district court of Delaware.

US car engine manufacturers challenge sale of ethanol blended gasoline

A group of engine manufacturers has filed a petition in the federal appeals court in Washington, against the decision of Environment Protection Agency allowing sale of gasoline blended with 15% ethanol. The petitioners have contended that the decision damages engines and violates Clean Air Act.

US ethics watchdog fines New York Governor

NY Governor was fined on Monday for unlawfully accepting free tickets to a 2009 World Series baseball game. New York Commission on Public Integrity imposed the fine after it found out that the governor had solicited five free tickets for himself, and relatives and friends.

Toyota agrees to pay record fine over safety probes

Toyota has agreed to pay a fine of $32 mn to the US Highway Traffic Safety Administration, related to government probes whether sufficient action was taken by the company in the past to address safety problems in some of its cars, and if the regulators were notified in a timely manner, as is required by law.

NY Attorney General sues E&Y

NY Attorney General has sued Ernst & Young, contending that the firm helped erstwhile Lehman Brothers Holdings take actions to deceive public about its financial condition, and hide billions of dollars worth of liabilities, before its sudden and dramatic collapse during global financial crisis.

US FTC okays McAfee purchase by Intel

Intel has received clearance from US Federal Trade Commission for its proposal to acquire McAfee, even as European Commission is in the process of reviewing the deal. Intel plans to integrate McAfee defences into its future chips, in order to enhance their security and resistance to cyber attacks.

US authorities intensify drive to probe tax shelters

Deutsche Bank has reportedly agreed to pay $553 millionn as settlement deal with US government, where many HNIs and banks are under criminal probe for tax evasion in the guise of questionable tax shelters. Authorities are trying to unearth US individuals' money parked overseas with help from prominent bankers.

Bloomberg News sues European Central Bank to obtain information on Greek debt

Bloomberg News has filed a lawsuit against European Central Bank (ECB) in EU's General Court, seeking disclosure of ECB's internal documents which apparently relate to Greek government deliberately using swaps to hide its borrowings, which triggered a massive fiscal crisis. The petitioner is already in possession of certain related documents, including correspondence between key ECB officials, and now wants full disclosure.

Use of Twitter could be allowed on case to case basis, says judge

Lord Chief Justice of England and Wales, during a bail hearing on Dec 20, 2010, said that use of Twitter by observers could be allowed for outward communication, as it is 'unobtrusive, handheld, virtually silent medium'. However, judges need to consider if it would interfere with the administration of justice, before granting such approval.

US to tax goods and services from foreign countries to compensate 9/11 victims

US Congress and Senate have passed James Zadroga 9/11 Health & Compensation Bill 2010, which will impose 2% tax on goods and services, purchased from foreign countries such as India from July 2011, to create a health fund for 9/11 victims. This is expected to adversely impact Indian IT companies, already reeling from the burden of enhanced visa fees.

Micro credit pioneer Grameen Bank's operations under the lens

Bangladesh government is forming a high powered committee to investigate irregularities in the operations of Grameen Bank, which pioneered micro credit in that country. Questions have been raised in the country's parliament as to why Grameen Bank is not being operated under Micro credit Regulatory Act 2006.

Hilton reaches settlement with Starwood Hotels

Hilton Worldwide has agreed to certain terms as part of a settlement with Starwood Hotels over a lawsuit. The lawsuit emanated from the action of two senior officials of Starwood, who jumped ship to Hilton and took thousands of electronic documents with them. The agreement bars Hilton from hiring any Starwood employee for two years, and from buying or franchising any Starwood Lifestyle Brand Hotel that Starwood operates.

Comcast purchase of NBC okayed by US Communications Commission

US Federal Communications Commission has reportedly given his approval to NBC Universal purchase deal by Comcast Corporation. However, the approval hinges upon several conditions, including online video, programme access and programme carriage.

Ireland HC allows government takeover of ailing bank

Ireland's High Court has allowed takeover of Allied Irish Banks by the Ireland government, without waiting for shareholder approval. It is the fourth such bank to be taken over, as Irish banks are running huge losses after the collapse of real estate bubble, and are finding it difficult to raise capital to meet Tier 1 capital norms.

US lodges complaint with WTO against China

US government has complained to WTO, challenging a Chinese government fund that awards grants to makers of wind power equipment. US has contended that these subsidies distort trade and act as a barrier to US exports to China, while China has clarified that they are part of its efforts to develop wind energy.

Takeda reaches for out of court settlement with generic pharmaceutical companies

Japanese company Takeda has settled out of court patent infringement suits with 11 generic companies, mostly Indian, over its diabetes drug Actos. These companies had challenged the patent with para IV marketing applications in the US. The settlement will help them to launch their generic versions in the US in 2012.

Regional banks under the lens in US tax investigation

American Justice Department has reportedly opened criminal investigation into the role of small Swiss banks which may have devised schemes to help rich Americans evade taxes. Investigators will look into the practice of pooling client money for investing, which makes it difficult to identify individuals.

Conflict widens between airlines and travel agencies in US

An online travel site has reportedly hidden American Airlines airfares from its screen, which makes it difficult for passengers to compare fares with fares of other airlines displayed prominently. A Chicago court had earlier given a ruling on Dec 21, 2010 which led American Airlines to remove its data from another site, and triggered fears of a similar action on other travel sites.

Zimbabwe sets up panel to probe treason

Zimbabwe's attorney general plans to set up a panel to examine the truth in reports released in WikiLeaks citing conversations of important local officials with US diplomats. The panel will establish if there was any collusion of locals with outside forces, which could possibly amount to treason.

China initiates move to bring down vegetable prices

Chinese government has initiated a move to exempt trucks hauling vegetables on highways form paying toll tax. Toll agencies are required to have a green channel for vegetable trucks to reduce their transport time and cost, translating into better consumer prices.

South Africa to join BRIC countries

South Africa has been invited to join the BRIC group of nations, comprising emerging markets of Brazil, Russia, India and China.

Basel Committee releases draft guidelines on banks' remuneration practices

Basel Committee for Banking Supervision has released new draft guidelines on disclosure requirements on financial sector remuneration, to deflect public criticism on bankers' fat bonuses during financial crisis situations. New guidelines require banks to disclose their remuneration practices.