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• NATIONAL NEWS Delhi HC: No provision to grant costs to the accused in case of adjournment during a trial Delhi HC has ruled that whether adjournment during a trial is sought or not, there is no power granted to an ACMM under the Criminal Procedure Code to award costs to the accused for court hearings. If at all any cost is imposed on the party seeking adjourment, it has to be deposited in court. In the instant case, the accused had to come all the way from Mumbai to attend hearings in Delhi. Bombay HC talks tough to students cheating in exams Bombay HC refused to condone the conduct of four students of premier Jamnalal Bajaj Institute of Management, who were caught with slips during their exams in December 2009. The students had approached the court after their 1st semester result was declared null and void following an enquiry by the institute, as they stood to lose lucrative job offers, but the court did not want to let them off without punishment. CCI investigating if sugar association's directive violated competition laws Competition Commission of India is reportedly enquiring into the cartelisation aspect of the sugar industry. In July last year, the Maharashtra State Federation of Cooperative Sugar Factories had issued a statement asking its members to refrain from selling sugar below Rs2700 per quintal, following which the sugar prices had shot up. Himachal charitable trusts under IT scanner Income Tax department is examining the source of foreign currency held in the accounts of certain Tibetan trusts operating out of Himachal Pradesh. These trusts reportedly availed exemption from income tax on account of being charitable trusts, but failed to disclose the huge sums they received in their bank accounts. Delhi HC strikes down Air India union derecognition order Delhi HC has set aside the derecognition of an Air India employees’ union, which went on strike last year. The court said the employer's order is bad in law, as it was passed without any show cause notice to the petitioner. It asked the union to treat the order as show cause notice, and reply to it within 4 weeks. Bombay HC delivers long awaited judgment on electricity futures Bombay HC has held that neither Forward Markets Commission nor Central Electricity Regulatory Commission have sole authority or jurisdiction to regulate forward trading/futures in electricity. Government is required to resolve the conflict between Electricity Act, 2003 and Forward Contract Regulation Act, 2006 by forming appropriate legislation. SEBI wants to raise the bar for corporate governance SEBI is planning to recommend to the corporate affairs ministry that interested shareholders should not have the ability to vote on related party transactions (like loans to group companies, product purchase or sale transactions with companies where directors of parent companies have an interest etc.) at the annual general meeting of shareholders. After Bermuda, India signs TIEA with another tax haven India has signed Tax Information Exchange Agreement with Isle of Man, a so called tax haven, to facilitate exchange of information on banking, ownership of companies/ trusts and information on criminal tax matters. India already has such an agreement in place with another tax haven, Bermuda. Audit qualification could necessitate restatement of financial statements, at CEO/ CFO's cost The Committee on Disclosures and Accounting Standards has recommended that stock exchanges be authorized to seek further information, in case of audit qualifications on a company’s financial statements. Depending on the case, SEBI may even ask the company to restate the accounts, the cost of which will be payable by the CEO/ CFO of the company, and not the shareholders. Laxity in subscriber re-verification to invite heavy penalties DoT has reiterated that all mobile operators have to finish subscriber re-verification by the new deadline of March 31, 2011, and any deficit will invite heavy penalties. The penalty is Rs20,000 for every unverified subscriber, if the verification percentage is less than 95%. India has 729 million cellphone users. Cairn-Vedanta deal still in limbo, pending oil ministry's nod Oil ministry is reportedly seeking law ministry’s opinion on Cairn Energy –Vedanta deal. While agreeing to some of the preconditions imposed by the ministry, Vedanta had refused to renegotiate contractual obligation of ONGC on royalty payment for the oil production of Rajasthan oil fields. In order to attract investment in the sector, government had arranged for ONGC to shoulder majority of the royalty burden on oil production from the Rajasthan oil fields, which ONGC finds unfair now. Replying to the PIL in SC questioning his appointment, CVC points fingers at tainted MPs In reply to the PIL in the Supreme Court seeking his dismissal, CVC PJ Thomas has submitted that mere chargesheet cannot be ground for questioning his suitability, as even a number of MPs and ministers too face criminal charges. He also said that since his selection was by a panel headed by the Prime Minister, Supreme Court does not have the power to examine its decision. Membership of banned organisation does not make a person criminal, Supreme Court bench rules Supreme Court has acquitted Arup Bhuyan, a member of banned United Liberation Front of Asom, who was convicted under TADA by the Guwahati HC. Supreme Court ruled that mere membership of a banned organization will not make a person criminal, unless he resorts to violence, incites violence or creates public disorder. Considering its wider ramifications, Centre may file a review petition against the recent Supreme Court ruling, as Unlawful Activities (Prevention) Act does make membership of banned outfit a criminal act. Supreme Court to hear all parties in 'homosexuality case' on April 19, 2011 Supreme Court has fixed April 19 as the next date of hearing on the appeal challenging Delhi HC verdict of July 2, 2009, declaring Section 377 of IPC (which made homosexuality a criminal offence) as unconstitutional. The court refused to implead armed forces as a party in the case, but will allow all the parties who have approached the court to present their case. The HC verdict had sparked fierce debate over the morality of homosexual behaviour. DTH operators up in arms against levy of entertainment tax, BIG TV latest to approach Supreme Court Reliance Big TV has moved Supreme Court against imposition of entertainment tax of 20 percent on DTH services by Madhya Pradesh. Other DTH operators like Tata Sky, Bharti and Sun Direct have already done so, contending that state governments can’t levy entertainment tax, as it is a service, and they already pay service tax to the Centre. Your Aadhar card to arrive by post UIDAI has signed an agreement with India Post, to leverage the distribution network of post offices to deliver UID Aadhar card to the citizens. Due to the importance attached to the card, post offices are going to ensure that Aadhar card and accompanying identification documents reach the actual recipient. DLF plans to appeal in Supreme Court against P&H HC order DLF is planning to challenge Punjab and Haryana HC order to demolish buildings on a land it had purchased from Oberoi Hotels. Haryana government had allotted the land parcel to Oberoi Hotels for a hospital and a hotel management institute, but they sold it to DLF, ignoring public good, alleged the petitioners. You can buy personalized stamps from India Post beginning February 12, 2011 In order to boost revenues, India Post is considering launching personalized stamps. If the experiment is successful, even corporates may be allowed usage of postage stamps with their own logos. The service for individuals will be available from February 12, 2011. FM reluctant to reveal 'black money' list, media publishes names Finance Minister has reiterated that government has served notices on 17 people whose names have been obtained in relation to 'black money' stashed away in foreign banks, but it is not possible to reveal their names, as the information can only be used for tax purpose as per the terms and conditions of the treaty. Unmindful of the FM's assertion, certain media houses published 15 names, and were verifying the remaining two. Airport developers aggrieved by AERA oder plan to appeal Private operators developing big airports are planning to appeal Airport Economic Regulatory Authority’s recent order capping the revenues –from both aeronautical and commercial streams on the basis of ‘single till’ approach. The order impacts revenues that can be generated from hotels, duty free shops etc, which the developers contend will negatively impact the attractiveness of the project for them. Irked by lawyer's action, Delhi HC assigns twelve cases for free Delhi High Court has asked a lawyer to fight 12 cases for free, after learning of a threatening letter he wrote to a jeweller to elicit information for his client in a dowry case. The cases to be fought by him have to be assigned by Delhi Legal Services Authority. DGCI preparing to send inspection teams to China and Italy Drug Controller General of India will send a team of drug inspectors abroad, to check compliance with Good Manufacturing Practices, of the pharmaceutical units of certain foreign manufacturers. The move comes after the import licences of the Indian agents of several such manufacturers were cancelled due to inferior quality of the drugs recovered from them. Heirs of motor accident victims cannot pursue two compensation claims simultaneously, rules Supreme Court Supreme Court has quashed the Gujarat HC decision, permitting the kin of a motor accident victim to pursue two separate compensation claims against insurer Oriental Insurance Co Ltd. The court held that the claimants, having obtained compensation u/s 163A, are precluded from proceeding u/s 166. Delhi HC restrains foreign firms from selling chargers with L&T logo Delhi High Court has held that an Indian company can request a customs officer to suspend the clearance of imported goods which are suspected of trademark infringement, and can even examine such goods and take samples. The ruling came in the case of L&T, which complained against foreign firms importing and selling 'made in China' chargers by misusing its logo. Bank free to accept or reject VRS request of an employee, rules Supreme Court Supreme Court has ruled that it is the prerogative of a bank to accept or deny VRS to an employee. An employee of Indian Overseas Bank had approached Allahabad HC, when the bank rejected his request for VRS, as he was said to be exceptionally meritorious. The Allahabad HC had declared bank’s decision to be arbitrary and malafide. Plastic packaging rules notified, major impact on FMCG industry anticipated Environment ministry has notified Plastic Waste (Management and Handling Rules), 2011 on February 4, 2011. Sachets using plastic material shall not be used for storing, packing or selling gutka, pan masala or tobacco products, w.e.f. February 4, 2011. SEBI barred entities face heat from corporate affairs ministry too Corporate affairs ministry will additionally inspect the accounts of 39 companies u/s 234 of the Companies Act, which were recently barred by SEBI for indulging in circular trading and causing loss to innocent investors. The ministry will also probe if these companies are connected through a nexus of common directors. HD tariff need not be regulated, rules TDSAT A bench of TDSAT has ruled that viewers who watch High Definition TV on costly TV sets may not be in need of protection like general viewers. Hence, there is no need for TRAI to regulate the HD tariff on the feed provided by broadcasters to DTH operators. Government to set up special courts to deal with spurious drugs Union health minister has indicated that the government is considering setting up designated courts for trying offences under the Drugs and Cosmetics Act, 1940. To begin with, such courts would be set up in cities and districts where there is a concentration of pharmaceutical units. Availability of surplus with EPFO to meet the enhanced interest liability on PF accounts doubtful CAG has reportedly written a letter to the labour ministry, pointing out that the actual interest liability on 47.2 million PF accounts with EPFO cannot be ascertained, and accordingly, the adequacy of the reported balance of Rs4672 Crores to meet the future liability on these accounts cannot be verified. Next FIPB meet on February 11, 2011 Foreign Investment Promotion Board is expected to meet on Feb 11, 2011, to consider 54 FDI proposals. The meeting will be chaired by the new Finance secretary Sushma Nath. Sale of used demo car to customer unfair trade practice, rules National Consumer Disputes Redressal Commission NCDRC has asked luxury car manufacturer Mercedes Benz, and one of its Chennai car dealers, to pay Rs2 Lac fine. The commission held that ‘selling a used demo car without the knowledge of customer amounts to an unfair trade practice within the Consumer Protection Act’. Ahead of the budget, government takes further steps to achieve consensus on GST Empowered committee of state finance ministers is expected to meet on February 11, 2011 to review the revised draft of the constitutional amendment required for the introduction of the proposed GST. New draft proposes creation of GST council through a Bill in Parliament, and not through President's order. Government readies plans for complete audit of defence lands Ministry of Defence is contemplating a complete land audit of all defence lands by using modern surveying equipment, for clearly demarcating defence land and updating the military lands register. The task will either be entrusted to the Director General Defence Estates, or a separate land regulator may be set up for the purpose. Finance ministry revises upper limit of tax cases to be handled by ITOs Finance ministry has revised the income limit for cases to be handled by Income Tax Officers w.e.f. April 1, 2011. ITO in ‘small areas’ will handle non-corporate returns of upto Rs15 Lac, and corporate returns of upto Rs20 Lac, while for metros, the limit has been enhanced to Rs20 Lac and Rs30 Lac respectively. Country awaits Bombay HC verdict in Ajmal Kasab case Bombay HC is likely to pronounce its verdict on an appeal filed by Ajmal Kasab, the prime accused in 26/11 Mumbai attacks on February 21, 2011. Kasab was sentenced to death earlier by a special court. Record no. of MNCs in transfer pricing net, finds E&Y survey A survey by Ernst and Young has reportedly found that there are over 1500 cases pending with respect to transfer pricing in various Indian courts and tribunals. These cases involve allegations of MNCs selling goods and services to their subsidiaries at inflated prices, with a view to evade taxes. Software industry looks to the FM to clarify software taxation issues in the budget Various distributors and industry bodies like Nasscom have urged the finance ministry to clarify provisions relating to taxation of packaged software in the forthcoming budget. Software packages sold with licences are subject to both service tax and countervailing duty in the country, leading to double taxation. Environment vs. development debate stalls mining clearance The powerful Forest Advisory Committee is believed to have urged the environment ministry to decline clearance for iron ore mining from Chiria reserves in Jharkhand, for a unit of SAIL. The area is thickly forested with Sal trees, is inhabited by various tribal groups and is a prime elephant habitat. Mining can adversely impact its biodiversity, feels the FAC. Havildar peeved over wife's death at army hospital petitions Delhi HC Delhi HC has issued notice to the Army R&R Hospital and the Army Chief, on the complaint of a havildar, who has alleged that his wife, who was taken to the hospital for treatment after a fall, died after her case was handled in a most casual manner by the doctor on duty. Consumer forum rejects demand for compensation from Residents' Welfare Association South Delhi district consumer forum has held that compensation cannot be claimed from RWA for the laxity of guards in enforcing security in the colony. The petitioner had demanded compensation for injury inflicted on his son by an outsider, for failure of RWA that had been pooling money from residents and arranging security. Home ministry outlines steps for state police to follow for controlling unruly crowds Home ministry has reportedly devised new Standard Operating Procedures for the state police forces to follow for crowd control. Police force can fire not before, but only after an act of violence has been committed, and the mob has to be warned by a magistrate accompanying the armed squad that firing is imminent if people don't disperse. Appointment of fire safety officers made mandatory for fire prone buildings in Delhi Delhi Fire Service has asked all buildings above 50m in height, cinema halls with more than 1000 seats, hotels with more than 100 rooms, and underground shopping complexes, to appoint fire safety officers u/s 29 of Delhi Fire Service Act, within 30 days. Those who fail to do so will be fined. Goods transport agents to be accountable for any negligence in transport of consignments Surface transport ministry is expected to notify Carriage by Road Rules by the end of this month, making it mandatory for goods transport agents and packers and movers to seek registration. In case of any consignment lost in transit, the concerned agent will have to pay 12 times the cost of freight. PM supports sound legal system at Commonwealth Law Conference, CJI recommends succour for the poor Jurists and lawyers from 54 countries participated in the Commonwealth Law Conference in Hyderabad, which was inaugurated by the PM on Sunday, February 6, 2011. The conference was organised in India after almost 40 years and sponsored by Manupatra. Speaking on the occasion, CJI SH Kapadia emphasized that food, education and healthcare should be made available at least to those living below the poverty line. Reliance Power's Sasan UMPP registers with UN body for carbon credits Reliance Power's UMPP at Sasan has become the first from India, and the biggest power plant so far, to be registered with Clean Development Mechanism Executive Board (CDM-EB) of United Nations Framework Convention on Climate Change. It hopes to earn Rs200 Crore every year from trade in carbon credits. Bank guarantee for corporate bonds figures on FM's agenda Government may allow banks to provide guarantees for corporate bonds in the near future. A few years ago, RBI had objected when SBI had decided to extend guarantee to a mega bond issue by Tata Motors. However, it is now being perceived that according safety to corporate bonds via guarantees may attract more investors. Cutting and embossing foil for packing cigarettes is not 'manufacture', rules Bombay HC Bombay HC has held that merely cutting and embossing on aluminium foil for packing cigarettes (by GTC Industries) doesn’t amount to manufacture, as no distinct and identifiable commodity emerges from the process, and the foil does not acquire any marketable value. Hence no excise is payable on it. WTO official commends India's competition policy WTO director (IP division) Antony Taubman has said that India is developing a good competition policy, and has devoted very significant resources not just on the legislative side but also on the legal and institutional aspects. Sushma Nath to be new Finance Secretary Current Expenditure Secretary Sushma Nath has been appointed the next Finance Secretary. Though she is due to retire on March 31, 2011, she has reportedly been given an extension of two months until May 31, 2011 UK Sinha to take over as new SEBI chief UK Sinha has been appointed chairman of the Securities and Exchange Board of India. He is expected to assume charge on February 18, 2011. Prior to his appointment, he was chairman of the UTI Asset Management Company. Supreme Court asks tough questions on CVC selection, wonders why pending chargesheet was ignored Supreme Court on February 3, 2011 questioned how the government could have ignored a pending chargesheet against PJ Thomas, for an appointment as important as the Chief Vigilance Commissioner. The court remarked that a pending chargesheet is considered a stigma in government, in case of even normal promotions. Court adopts innovative way to elicit information from absentee litigants District courts in Godhra are reportedly using pots kept at strategic locations, to let litigants who have reached an out of court settlement to drop letters informing their decision. The step was taken after noticing how the parties fail to inform the court once they reach an understanding, and simply stop turning up for hearings. ITBP recruitment chaos at Bareilly to be probed Central government has ordered an inquiry into the violence and chaos that ensued when an ITBP recruitment drive at its Bareilly, UP camp was cancelled on February 1, 2011. While one person reportedly died in the clashes, a few others met their end when they were crushed while travelling on the rooftop of a train. Bombay HC declines to ban astrology Bombay High Court on February 3, 2011 dismissed a PIL filed by an NGO, that sought action against ‘bogus astrologers, tantriks and vastu shastra practitioners’, and advertisements promoting such services. HC clarified that Supreme Court has already ruled that astrology is a science, and its decision is binding on the HC. Delhi HC wants proof of police action in illegal employment of child labour Delhi High Court has directed DCP (South) to file a status report on the rescue of child labour working in embroidery units in Jamia Nagar. The court’s order came on a petition by an NGO ‘Save Childhood’, which pointed out how a mob had attacked the police team which had gone to extricate the children, leaving the entire operation in a lurch. Membership of banned organisation does not bar citizens of Assam from voting Chief Election Commissioner has clarified that members of banned insurgent groups like ULFA can vote in the upcoming assembly elections in Assam, if their names figure in the electoral rolls. Trading in human organs to attract stringent punishment Health ministry is all set to submit Transplantation of Human Organs and Tissues Amendment Bill, 2011, for Cabinet approval. The Bill seeks to substantially enhance the fine and the jail term for illegal removal or commercial dealing in human organs, while legalizing swaps between willing donors. Supreme Court: Issues already adjudicated upon cannot be raised again in the form of PIL Supreme Court has ruled that its jurisdiction in a Public Interest Litigation cannot be pressed into service, where the matters have already been completely and effectively adjudicated upon not only in the individual petitions but even in the writ petitions raising larger questions. Kerala HC dismisses petition against creation of Islamic financial institution A division bench of Kerala High Court on February 3, 2011 dismissed petitions objecting to the floating of an Islamic financial institution by the state government institution (KSIDC). HC said it will not lead to promotion of any religion, as the proposed body is going to comply with financial laws of the country, even while observing Sharia rules. I&B ministry 'signals' change, proposes 2015 deadline for shift to digital system I&B ministry has proposed shifting from analog to digital systems for cable TV transmissions, with the deadline of March 31, 2012 for the four metros and a countrywide deadline of March 31, 2015. The proposal is reportedly with the TRAI as of now, and will be submitted to the Cabinet for approval. Irish bank files lawsuit over top selling banking software Flexcube Allied Irish Bank has filed a lawsuit claiming compensation of Euro84 million from Oracle Financial Services Software, a software company based in India, claiming that its retail banking product Flexcube has technical problems. The Indian company plans to file counter-claim for breach of contract and non-payment. Industry experts, meanwhile, say that implementation of retail banking software solutions is a complex process. Bombay HC upholds termination of REpower-Essar pact Bombay High Court has upheld termination of an agreement with Essar Group by the German company REpower Systems. The pact was signed in 2006, for designing and manufacturing wind turbines in India, with technology to be provided by the German company, but was allegedly terminated due to failure of Essar to set up manufacturing facility. Steel and commerce ministry differ over iron ore exports Commerce minister has expressed disagreement to steel ministry's proposal to cut down on iron ore exports, saying bulk of India's iron ore production is of 'fines', which does not have a huge domestic market. Last year Karnataka had banned iron ore exports, and the ban was upheld by the state High Court. Biometric database to safeguard workers' interests under NREGS At the 5th anniversary of NREGS, PM said that rural development ministry will create biometric database for digitally recording provision of work, as well as payment of wages to the workers under the scheme. He omitted to mention UID number, which has been opposed by activists on ground of posing threat to civil liberty. Railways plan land acquisition with a human face Railway ministry has announced higher compensation at 60% of market value, as compared to 30% payable under the Land Acquisition Act, to persons whose land is acquired by the Indian Railways. Railways will also strive to provide job to one member of the land losing family. Agriculture ministry seeks FDI in food processing Agriculture minister on February 2, 2011 clarified that there is no requirement to increase FDI in agriculture, because Indian farmers have very small holdings, mostly below two hectares. However, FDI in food processing is welcome. India, Norway sign tax treaty India and Norway on February 2, 2011 signed a tax treaty, that will check instances of double taxation, as well as tax evasion, and pave the way for exchange of information between the two countries. Vedanta has to seek fresh environmental clearnce for capacity enhancement at Kalahandi, Orissa In its response to Vedanta’s writ petition in the Orissa High Court, the MoEF has clarified that the company has been asked to apply afresh for environmental clearance for its expansion plans in Kalahandi, from 1mtpa to 6mtpa. Fresh proposal, howevr, will not mean regularization of construction undertaken earlier. Loans against gold jewellery do not qualify for priority sector lending RBI has clarified that loans advanced by banks to NBFCs for on-lending to individuals or other entities against gold jewellery, and investments in securitised assets originated by NBFCs, where the underlying assets are loans against gold jewellery, are not eligible for classification under agriculture or priority sector. Unitech repaying funds borrowed against pledged shares Unitech promoters are believed to have started repayment of a substantial sum borrowed from banks against pledging of shares. Earlier, there were reports that when the market price of the shares fell, they failed to pump in additional margin, prompting banks to sell the shares. The company had then moved Delhi HC, to obtain a stay order on the sale of pledged securities by banks, and the court had reportedly given the company time upto February 22, 2011 to repay. Exemption to state owned importers of precious metals State owned companies MMTC and STC have been exempted from the mandatory supply of 15 percent of their precious metal imports to exporters. Delhi HC awards compensation to parents of kids in civic negligence case A two judge bench of the Delhi HC on February 2, 2011 asked Delhi Jal Board and Delhi government to pay Rs3.5 Lacs each to the kin of four children who drowned in a deep pit. The pit had been dug up to lay water pipeline but left unfenced by the contractor. Part of the sum is to be in the form of an FD, with parents allowed to withdraw only interest SEBI imposes ban on 39 entities for circular trading and price rigging SEBI has banned 39 entities from the securities market, after a detailed investigation of price rigging between 2008-10. Mainly belonging to Walmiki- Shah group and Pabari- Parikh group, these entities engaged in circular trading to create artificial volume and inflated prices in shares of select group companies. Planning Commission launches website to interact with general public on important issues Planning Commission on February 2, 2011 launched a website for the 12th Plan (2012-17), to invite comments of the general public on a wide range of issues, like inflation and corruption. The comments will be examined by the members of the Commission. The website displays a list of 12 issues on which people can post their comments. Supreme Court puts government in a spot, refuses to extend 8 week deadline for notifying gutka packaging law Supreme Court on February 2, 2011 asked the government to notify law to regulate use of plastic for packaging gutka and other tobacco products within 2 days, while hearing petitions filed by ‘gutka,' manufacturers seeking modification of the Dec 7, 2010 order, whose eight week deadline is about to expire. No general amnesty for Tri Valley students, Indian consulates to organize legal camps Indian consulates in the US might organize free legal camps for duped students of Tri Valley University. However, US authorities have reportedly clarified that there won’t be general amnesty, as many students of the university misused the student visa by engaging in gainful employment upon arrival in the US. Government clarifies phone intercept rules in Supreme Court Government has clarified before Supreme Court that eight central agencies and police of all state governments have the power to intercept telephones. While central security and law enforcement agencies have to take permission from Union home secretary, state police has to approach their state home secretary for permission to intercept phones. Government and Reliance Infocomm to produce original documents of illegal phone tap case on next hearing Supreme Court on February 2, 2011 asked the Centre to disclose what action it had taken against telecom operator Reliance Infocomm for tapping the phone of politician Amar Singh illegally, five years ago. The government and the telco were directed to produce original records of the case on next hearing on Feb 9, 2011. CBI arrests former minister, key aides CBI has today arrested former telecom minister A Raja in connection with 2G spectrum allocation scam. Two key officials, RK Chandolia and Siddharth Behuria were also arrested. Their names reportedly appear among the accused in the enquiry report submitted by Justice Shivraj Patil. RCom and RTel asked to deposit 50% of additional charge demanded by DoT While hearing the appeal of RCom and RTel against the order of TDSAT, which declined to stay the increase imposed by DoT on spectrum usage charge, Supreme Court has asked the two companies to deposit 50% of the demand and provide a bank guarantee for the rest within 2 weeks. Female relatives too can be booked under Domestic Violence Act, rules Supreme Court Supreme Court has ruled that there is no restrictive meaning to the expression ‘relatives’ to cover only males, and female relatives of the husband are not excluded from the ambit of a complaint that can be filed by an aggrieved wife under Domestic Violence Act, 2005. IRDA issues fresh guidelines on outsourcing by insurance companies IRDA on February 1, 2011 issued fresh guidelines on outsourcing activities by insurance companies. These instructions are intended to provide direction and guidance to insurers to adopt sound and responsible risk management practices for effective oversight. (copy attached) Delhi HC provides major tax relief to foreign satellite service provider Delhi High Court has ruled that the fee paid to AsiaSat, a Hong Kong based satellite service provider, for the use of transponder by an Indian broadcaster, cannot be taxed in India as royalty. The co. had appealed a 2002 decision by the Delhi ITAT, which had termed the payment as royalty and liable to tax in India. RBI suggests tripartite agreement, escrow a/c for home loans RBI has asked banks to secure real estate loans with an escrow account, by entering into a tripartite agreement with the buyer as well as the project developer. The escrow mechanism will ensure staggered payments to the developer, linked to specified construction stages, and discourage diversion of bank funds meant for construction of the dwelling. Supreme Court allays fears on government action on 2G spectrum, next date of hearing on various PILs is Mar 1 Supreme Court yesterday clarified that any further action of the government in the 2G spectrum will be subject to the outcome of the petitions before it. The remarks came while hearing the petition of the Centre for PIL, which has alleged that government is trying to regularize licences of defaulting telcos by imposing penalty. FDI in Defence to go up? A GoM is currently examining the feasibility of raising the FDI limit in the defence sector to 49%, from the current 26%. The move is expected to attract foreign manufacturers to invest in the defence related sector. Government to formulate procedure for keeping taped conversations under wraps The government has submitted to the Supreme Court that it has appointed a committee to devise ways to safeguard taped conversations from leaking out. Proposals include appointment of a custodian for such tapes, and erasing those which are of totally private nature. The submissions came in response to Ratan Tata's petition. Indians accused of murder in Sharjah may be spared in return for 'blood money' Family of Mumtaj Yousuf, a young Pakistan national who was killed in a group clash in Sharjah in 2009, has reportedly decided to forgive eight Indian men accused of the murder, in return for ‘blood money’, in accordance with local laws. The money has been tendered in court. Krishna Sobti's copyright claim rejected after 26 years of trial A Delhi trial court has rejected the copyright claim of author Krishna Sobti on the word “Zindaginama”, who had filed a case against Amrita Pritam’s “Hardutt ka Zindaginama”. Court relied on the testimony of Khushwant Singh, who said that the word, meaning 'life story', had been in use even earlier in Persian and Arabic works. India opposes bending global trade rules to favour Pakistan's textile exports India, Sri Lanka and other developing countries are opposing European Union’s proposal to waive off duties on Pakistan’s textile products, in the garb of providing flood relief. They have informed WTO that humanitarian aid should be delivered in cash and kind, but trade rules should not be manipulated. Government to set up Vegetable Parks to sell agricultural produce at reasonable prices Agriculture ministry is proposing to set up ‘Vegetable parks’ in all the cities with a minimum population of one million, to eliminate the middlemen and make quality vegetables available at affordable prices to the consumers. The land acquisition process will start soon, in cooperation with states. Expenditure on make up and clothes by actor a valid expense, rules Mumbai ITAT ITAT Mumbai bench has allowed actress Ameesha Patel to claim tax deduction on entire Rs8.15 Lacs that she had incurred on make up and clothes in 2004-05. While allowing the deduction as professional expense, the Assessing Officer had disallowed 15% as personal expense. The bench found no reason to treat 15% as ‘personal expense’. Sugar traders peeved at discriminatory licensing, stocking norms Sugar traders are contemplating moving the Bombay HC against the disparity in norms for physical trading vs. futures trading. While there is requirement of a licence, and a limit of 200 tonnes for storage of sugar stocks, futures trading does not require a licence, causing price distortions. Idea Cellular approaches TDSAT to get 3G spectrum released in Punjab Idea Cellular has moved TDSAT, to seek directions to the Dept of Telecom to release 3G spectrum to it in Punjab. The allocation is reportedly held up because of its merger with Spice Telecom. Pesky calls deadline extended yet again The deadline for unsolicited commercial/ telemarketing calls bearing ‘140’ series has been further extended to March 1, 2011, to give the network operators more time to overcome technological difficulties. POSCO project finally gets clearance, environment minister cites its strategic significance The POSCO mega project in Orissa has finally been cleared by the environment ministry with 28 conditions, including restrictions on emissions, water sustainability and green cover requirement. The company is also required to spend 2% of annual profit on social welfare. US says 'radio tagging' standard procedure, does not necessarily imply guilt Countering the sharp reaction from the Indian authorities over ‘radio tagging’ of students of dubious Tri Valley University, US has said that it is a standard procedure in their country, which is used in a variety of investigations, and does not necessarily imply suspicion of criminal activity. Vodafone Essar partners striving to resolve the valuation issue Essar and Vodafone have reportedly agreed to appoint two investment banks to arrive at a fair valuation of Essar’s 33% stake in mobile phone operator Vodafone Essar. Essar had reportedly filed for reverse merger of part of its stake in India Securities, to which Vodafone had objected. Under pressure from the Kerala HC, temple board admits divine 'jyothi' is manmade Sabarimala temple board on February 1, 2011 finally admitted that the divine ‘Makarajyothi’ is a fire lit by men. Kerala HC had recently asked both the state government and the board to clearly disclose the exact origin of the phenomenon. The government had said that it’s a matter of faith in which it can’t interfere. FIR against merchant ship's crew which collided with INS Vindhyagiri and led to its sinking INS Vindhyagiri has reportedly sunk off Mumbai harbour, partly due to water which accumulated due to firefighting efforts after its collision with a Cyprus flag bearing merchant ship. An FIR has been filed in Mumbai against the merchant ship’s crew, for rash navigation and mischief causing damage. Madras HC frowns upon 'Hindus only' qualification for appointment as epigraphist/archaeologist Madras HC has upheld equality of opportunity for all citizens in employment to any post under the state. The court directed TN Public Service Commission to consider the candidature of a well qualified Muslim candidate, who was rejected for the post of archaelogical officer/epigraphist since he was not a Hindu. CBI court trying PF scam case asks accused persons to appear in person The CBI court trying the provident fund scam has directed all the six accused judges to appear in person before the court on the next date of hearing. Supreme Court directs all state governments to evict encroachers from community lands Supreme Court on Monday directed state governments to prepare schemes for eviction of illegal occupants of village community land and restore them back for the original purpose, holding that long duration or huge expenditure in illegal occupation cannot be treated as justification for regularising the occupation. Supreme Court upholds Kerala HC judgment permitting trial under Prevention of Corruption Act Supreme Court on Monday dismissed appeals by Kerala Cricket Association officials against Kerala High Court judgment dated October 26, 2010 permitting their prosecution under Prevention of Corruption Act for misappropriating funds. Supreme Court held that since they are required to perform public duty, they can be tried as ‘public servants’. Gujarat HC comes to the rescue of young rape victim Gujarat High Court has allowed a rape victim to terminate her advanced pregnancy, to save her from socio-economic trauma. The victim had become pregnant in captivity, and doctors had refused to carry out MTP after she was rescued. HC has directed the foetus to be preserved for DNA testing, for prosecuting the accused once he is nabbed. Delhi HC directs residents to bear the cost of replacing defective water meters Delhi High Court has ruled that the residents must pay for installation and maintenance of a water meter on their premises. It directed the Delhi Jal Board to prepare a list of outlets from where such meters can be purchased and the names of plumbers who can carry out the job. TDSAT stays encashment of bank guarantee In an interim order on Wednesday, TDSAT directed DoT not to invoke the bank guarantee of Allianz Infratech till further orders, as the company has been merged with Etisalat DB (erstwhile Swan Telecom). I&B ministry suggests amendment in press laws to address contemporary concerns Government is contemplating sweeping changes to the Press and Registration of Books and Publications Act through an amendment Bill. The new Bill will also cover publications in digital format, prevent squatting on titles by giving publication a deadline of one year, and bar convicted people from running newspapers. Trai releases report on valuation of 2G spectrum TRAI has forwarded “Report on the 2010 value of spectrum in 1800 MHz Band” (2G spectrum) to DoT. As per the recommendations, even existing operators will have to shell out more for additional 2G spectrum beyond 6.2 MHz, which has been valued at more than even 3G auction price, because of its superior efficiency. Only independent scientific experts on food safety panels, rules SC Supreme Court on February 8, 2011 directed the Food Safety Authority to remove the officials of FMCG companies from the 8 panels responsible for regulating manufacture, storage and distribution of foodstuff in the country. As per law, the panels have to be staffed with independent scientific experts, and not industry agents. Aarushi's parents to be tried for murder and destruction of evidence CBI special court at Ghaziabad on February 9, 2011 rejected the closure report filed by CBI, and asked the agency to make Aarushi Talwar’s parents the main accused in the destruction of evidence and murder of their daughter and domestic help Hemraj. The trial will begin February 28, 2011. Corporate affairs ministry relaxes annual report norms, goodbye to bulky balance sheets Ministry of Corporate Affairs has waived condition u/s 212 of the Companies Act, 1956, requiring holding companies to attach with their balance sheet, the balance sheet and profit and loss account of each of its subsidiaries, provided a resolution to this effect has been passes by the Board of Directors of the company, and the annual report carries duly audited consolidated financial statements of holding company and all its subsidiaries. Unlisted companies running into losses free to structure managerial remuneration Ministry of Corporate Affairs has amended Sch XIII of the Companies Act 1956, to provide that unlisted companies (which are not subsidiaries of listed companies) shall not require Government approval for managerial remuneration in cases where they have no profits/ inadequate profits. Non- compliance with listing agreement norms to cost dear SEBI has asked stock exchanges to issue notice to the companies which have been delisted for non compliance, as substantial amount of shareholder money is blocked in such companies. A study by the stock exchanges reportedly found that though some of these companies were regularly filing their annual reports with the Registrar of Companies, they were not communicating the same to the stock exchanges. If the exchanges fail to act on such companies, SEBI will launch the adjudication process to conduct inquiry and impose penalty. Trade pacts with Japan and Malaysia soon, signals the commerce minister Commerce minister has said that India will sign a Comprehensive Economic Cooperation Agreement with Malaysia and Comprehensive Economic Partnership Agreement with Japan within a week. The trade pacts will eliminate or reduce tariffs on a majority of goods, and open market access for services. NCW draws attention of SC to multiplicity of marriageable age under different legislations in India An SC bench remarked on February 8, 2011 that government has reformed personal laws of Hindus, but there is lack of secular commitment, as it has not happened for other religions. The court’s remarks came while hearing a petition by the National Commission for Women, demanding direction to the government on reconciliation of uniform marriage age under separate legislations. ISRO says Antrix-Devas deal under review since 2009, might be cancelled ISRO said on Tuesday that the Antrix-Devas Multimedia deal on S- band spectrum was under review since 2009, and might be cancelled soon. The review had been necessitated by the requirement of S-band spectrum by the country’s national agencies. The opposition has labeled the deal as another spectrum scam. States still have have misgivings on GST, may oppose the third draft at February 11 meet States like MP, Gujarat, Jharkhand and TN are gearing up yet again to oppose the third draft of GST. States fear that Art 279 A and 279B will curtail their rights to impose and collect taxes, by empowering only Parliament and GST council to suggest or impose taxes, which is not desirable in a federal structure of governance. SC: Demand for valuable security having direct or indirect nexus with marriage is demand for dowry Supreme Court has held that if a demand for property or valuable security, directly or indirectly, has a nexus with marriage, such demand would constitute 'demand for dowry'; the cause or reason for such demand being immaterial. The ruling came in the case of Bachni Devi and Anr. Vs. State of Haryana through Secretary, Home Department; Bachni Devi and her son had been convicted for the death of her daughter- in-law Kanta, who died within three months of marriage, for failure to procure a motorcycle from her parents. Govt taking steps to ease the burden of exporters Report of Task Force on Transaction Cost in Exports, which was released on February 8, 2011, has proposed introduction of an 'All industry service tax rate' to expedite refund of service tax on output services, and a 'single bond' for multiple authorizations from customs, to reduce unnecessary paperwork. The report has claimed that 21 recommendations in the report have already been implemented by the ministry.
• INTERNATIONAL NEWS American employee of Toshiba alleges gender discrimination An HR manager working for Toshiba Corporation in the US has filed a $100 million lawsuit alleging gender discrimination against women. The petitioner has argued that Toshiba America Inc pays women lower salaries and bonuses as against men for doing similar work. Creating jobs should be top priority for governments, says IMF chief The head of IMF has warned that food and fuel inflation may stoke anti-government protests and lead to rising political and social instability within nations – even war. Creating jobs, therefore, must be a top priority not only in the advanced economies, but also in many poorer countries. Wary of cyber espionage, Britain wants international community to focus on the issue British Foreign Secretary has expressed concern at ever increasing cyber crime and the lack of focus on cyber security issues worldwide. Some British government installations have also faced cyber attacks. He said that despite many international organisations working on the issue, there is no proper coordination to achieve results, and offered to host an international conference to achieve progress and focus. UK Bribery Act spells disaster, feel shipping companies The long awaited Bribery Act that was scheduled to be implemented in April 2011 has been delayed until guidance is provided for businesses to work and survive under the new regime. Baltic & International Maritime Council has expressed concern over the UK Bribery Act 2010. The Act will be applicable not only to commercial organizations in the UK, but to offences committed extraterritorially too, including bribing foreign public officials. The provisions of the Act are expected to adversely impact shipping crews, who have to sometimes pay 'facilitation money' on foreign shores. Federal Court of Washington D.C. poised to pass crucial ruling The Federal Court of appeals in Washington is poised to uphold the dismissal of a suit that alleges government torture in Afghanistan and Iraq. The aggrieved are seeking monetary damages and declaratory relief against former Defense Secretary. However, in 2007, Judge Thomas Hogan of the U.S. District Court for the District of Columbia dismissed the suit stating that constitutional rights do not extend to nonresident aliens especially those alleging torture in countries which are engaged in war with the United States . The ruling is yet to be heard for the same from the Appeal's Court. Traditionalism at its peak in Dubai Recently the highest Court in Dubai upheld the deportation of a Pakistani man who had made hand gestures while having an altercation at a traffic signal. This yet again reinforced the United Arab Emirate's strict adherence to decent behavior. These incidents in Dubai are not new as there have been instances of deportation due to public display of affection or skimpy clothes. This ruling just showcases the two personalities of UAE, one cosmopolitan and encouraging presence of international crowd, other being strictly rooted to its traditions. Legitimate rights respected in Egypt The army in Egypt has vowed that they will not use force on the thousands of people who are protesting for removal of their President, thereby acknowledging their legitimate rights. In order to bring the curfew under control, the President's Deputy has been asked to do open talks for constitutional and legislative reforms. However, for now it seems that this unofficial truce is here to stay. Online crime maps in England New online crime maps have been introduced in England and Wales, through which people can actually view and be updated about the street crimes in their concerned areas. This is expected to make police more accountable. To have this system successfully activated, the victims will have to consent to report the incidents online. This is expected to bring transparency to the criminal justice system. UK Tax authority criticized The tax authority is being criticised over its tax management system. The implementation of the new PAYE system is said to be flawed as millions of people were not taxed accurately. A lot of tax payers either overpaid or underpaid. This new system was adopted in 2009 and on its operation between 2008-10, 4.3 million people overpaid £2bn while 1.4 million people underpaid £1.8bn. This has been criticised by a Committee of MP's, which has further demanded for everyone's PAYE to be processed to avoid inconvenience. Obama's Health care law struck down The Health care Reform Bill passed in 2010 has been struck down by Florida judge for being unconstitutional. The requirement under the law, that Americans buy health insurance or be penalized, violates individual rights. It fate is yet to be decided by the Supreme Court. Tough sanctions on Belarus The US has toughened the sanctions on the leadership of Belarus, following the EU, which has frozen the assets of the President and other high level officials. This step has been adopted to respond to the brutal crackdown. The international community had to act to the disproportionate use of force and illegal detentions. Due to these events Mr. Lukashenko is often referred as the last dictator of Europe. Hungary's controversial new media law The Deputy Prime Minister of Hungary wants to talk about its new media law with the EU, who had asked for more information with regard to the law. However, if the law violates EU law, it is open to modifications. The new law creates the National Media and Communications Authority which controls private television, radio broadcasters, newspapers and online news sites, and the Government can impose heavy fine on broadcasters if their coverage is deemed immoral by the media authority. Due to its applicability to media companies inside and outside Hungary, it is said to violate EU regulations, as broadcasters are only to be subject to the rules of the country. Freedom of expression concerns are also present. Violence during Bangkok protests to be reviewed The Red Shirts- a pro-democracy movement petitioned the ICC to investigate and review the violence and crimes committed by the Government against humanity during the protests. The petition had substantial basis for the same. Release of diplomats demanded by US US embassy in Pakistan demanded prompt release of a US diplomat who is believed to have been illegally arrested for shooting two Pakistanis, arguing that the man qualifies for diplomatic immunity and the arrest violates international norms and the Vienna Convention. Media reports later alleged that the two men who were shot could be secret service agents. Kenyan PM alleges violation of the new Constitution Kenyan Prime Minister said that the President violated its new constitution when a series of judicial, financial and legal appointments were made without consulting him. According to Odinga, the new constitution had created a part of a power-sharing agreement which requires presidential appointments to be approved by the prime minister. This reform was aimed at curbing presidential powers. Therefore, he has threatened to block the appointments, if not withdrawn. Rendition suit by Canadian citizen Canadian citizen Arar petitioned US Supreme Court for a writ of certiorari to overturn a ruling, that said that he could neither sue the US government for damages based on his detention in the US, nor could he claim damages for being detained in Syria, where he was mistakenly identified as a terrorist. Arar was attempting to challenge the US government's policy of extraordinary rendition under the Torture Victim Protection Act and the Fifth Amendment of the US Constitution, but the Supreme Court denied the petition. Bush's assassination plotter sentenced for life Life sentence of Abu Ali , a citizen of US who had joined Al Qaeda and was convicted in 2005 for conspiring to commit terrorist acts and plotting to assassin the then President George Bush, has been affirmed by the US court of Appeals for Fourth Circuit. New START treaty signed by Obama The New START treaty, an agreement between Russia and President Obama has been signed. This document ratifies his intentions to reduce nuclear arms in both countries. The new treaty, which replaces the Strategic Arms Reduction Treaty, calls for each country to reduce its nuclear arsenal by about 30 percent and also allows for visual inspections of nuclear capabilities. The treaty is considered to be a key part in to order to ease the tensions between the two countries, which reached a high point after the 2008 Georgia conflict. Prosecution of Haitian president urged The UN High Commissioner for Human Rights, Navi Pillay has offered technical assistance to Haitian authorities in order to prosecute former Haitian president for serious human rights violations. The prosecutors were indicated that violations like torture, extra-judicial killings and rape are not subject to a statute of limitations . Mr. Pillay called on Haiti to provide justice to the victims. Alongside, Amnesty International announced that Haitian authorities will investigate crimes committed against humanity . Chevron accuses trial lawyers in Ecuador's pollution case A countersuit has been filed by the Chevron Corporation against trial lawyers for what it says was a campaign to rig the Ecuadorean court system in a bid to win billions of dollars in a pollution claim. It includes federal racketeering claims. Chevron accused consultants of ghost-writing an expert's report that pegged such high environmental damages. The suit is presented with the prayer that the court declare any judgment against it in Ecuador to be the result of fraud, and therefore unenforceable. It also seeks to recoup its legal fees. Twitter use approved by Britain's Court The Supreme Court of Britain has approved twitting so that the outer world can be updated of a case while it is being heard. However cases involving children are still to be excluded from this parameter, for them being vulnerable. During a recent case it was mentioned that tweeting can be allowed in the Lower Courts excluding criminal cases which may have impact on the witnesses due to such information being telecasted. Death penalty in US unconstitutional? A Texan judge in a re-trial motion of a capital murder ruled death penalty to be unconstitutional. Judge Fine said that it was unsafe to prosecute innocent people. The attorney of the accused argued that the law providing the procedures to a jury in the Texas Code of Criminal procedures violate the 8th and 14th amendments to the U.S. Constitution, which prohibits cruel treatments and guarantees due process of law. However, since the decision has been criticised, the hearing has been rescheduled to be heard again based on evidences. IBM executive pleads guilty A former IBM executive has pleaded guilty for insider trading, in the largest conspiracy in hedge fund history. He pleaded guilty for conspiring to cause securities fraud, which potentially penalises a person for 25 years. Moffat, had given out informations to New Castle Partners, about IBM and Lenovo's financial performance, and about a deal involving AMD acquiring the right to use some of IBM's technology, which allegedly has been used illegally to execute stock trades. Report claims UK has become subservient to Strasbourg Court A report, written by a former Government adviser, says the UK has become "subservient" to the Strasbourg Court, which has led to ignoring the traditional British freedom of the press. It is further claimed that the Strasbourg judges are poorly qualified, compared to Britain's own senior judges. Therefore, if improvements are not made within two years, the Government should consider withdrawing from jurisdiction of Strasbourg, in order to prevent UK citizens lodging appeals there. Prisoners being tortured in Iraq, claims Amnesty International Amnesty International has reported that the Iraqi prisons are secretly torturing suspects in custody. The report, "Broken Bodies, Tortured Minds: Abuse and Neglect of Detainees in Iraq," alleges that thousands of people are detained without trials. Also, it is alleged that the Central Criminal Court of Iraq regularly convicts defendants based on confessions extracted with the use of torture, and on release most prisoners suffer from physiological and psychological injury. However, Iraqi Prime Minister Nouri al-Maliki denied similar claims made by Human Rights Watch. Representative to Iraq Ad Melkert urged the Iraqi government to ratify the UN Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, but Iraq is yet to ratify the treaty. Musharraf's alleged involvement in Bhutto assassination Former president Pervez Musharraf has been accused of assassinating former prime minister Benazir Bhutto by the Federal Investigation Agency of Pakistan. His name has been filed in the criminal charge sheet. Investigations revealed that he had allegedly given orders to the police officers, accused of failing to protect Bhutto, to remove security detail prior to her departure. Independence of UK's Supreme Court threatened due to Government funding Lord Phillips asserted that the independence of the Supreme Court cannot be guaranteed due to Government funding. Being the President of the Court, he said that the senior staff of the Court is in a dilemma being torn between him and the Ministers. The aim of the Court ever since it replaced the Law Lords in 2009 has been to separate Parliament law makers and the Judges, which now is being threatened though the Government has claimed judicial independence. ADB official warns Asian governments to prepare for climate induced mass migration in the coming years Bart Edes, key ADB official, has said that climate-induced migration will affect poor and vulnerable people more than others. ADB’s forthcoming report 'Climate Change and Migration in Asia and the Pacific' underlines specific risks confronting climate change in megacities in coastal areas of Asia, and advises governments to prepare for the situation. |
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