1 New Delhi: An industry which does not pay the minimum wages to its workers has “no right to continue”, the Delhi high court has said, terming non-payment of such wages as “unconscionable and unpardonable”. The employment of workmen without paying them the minimum wages constitute a criminal offence for which punitive sanctions are provided under the minimum wages act, 1948, the high court said. The order was pronounced by the court as it allowed the petition of a gardener and dismissed the plea of his employer, the Central Secretariat club, on the issue of payment of minimum wages to him as prescribed by Delhi Government. Justice C Hari Sankar, directed the club to disburse to gardener Geetam Singh the difference in payment between the wages and paid and the minimum wages payable to him under the act from September 1, 1989 to September, 1992, in addition to the amount awarded by the labour court. The court also directed the club to pay Rs. 50,000 cost to the man for not complying with the labour court‟s order passed 14 years ago directing it to pay Rs. 15, 240 to singh for the period between October, 1992 and September, 1995. It said the total amount to be paid to the man shall be given with an interest of 12 per cent per annum from the date of award, July 16, 2004 till the date of paying him and directed that the payment should be made within four weeks of the passing of this order. “ Non-payment of minimum wages, to a workman is unconscionable and unpardonable in law”, the court said, adding”…(the) discussion leaves no manner of doubt that minimum wages are the basic entitlement of the workman, and an industry which employs workmen without paying them minimum wages has no right to continue”, As per the order, Singh had worked with the club from September 13, 1989 to September 30, 1995 Advocate Anuj Aggarwal, appearing for singh, submitted that the workman was entitled to be paid difference in wages for entire period from September 13, 1989 to September 30, 1995 and the labour court materially erred in limiting the award of differential wages only to the period October 1992 to September 1995. The club‟s advocate said they were willing to pay Rs. 15,240 awarded by the tribunal, which was the difference between the wages paid to Singh and the minimum wages payable to him, for the period October, 1992 to September, 1995. However, the court said” such magnanimity appeared to have dawned on the club too late in the day” as despite not obtaining any stay from his court, it was admitted that no payment in accordance with the award has been made to the man and he has been paid only litigation expenses. NEWS Industry not paying minimum wages has no right to continue: Delhi High Court
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Industry not paying minimum wages has no right to continue ...geogujarat.com/images/uploads/downloads/1535452548.pdfThe order was pronounced by the court as it allowed the petition
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New Delhi: An industry which does not pay the minimum wages to its workers has “no right to continue”, the Delhi high court has said, terming non-payment of such wages as “unconscionable and unpardonable”.
The employment of workmen without paying them the minimum wages constitute a criminal offence for which punitive sanctions are provided under the minimum wages act, 1948, the high court said.
The order was pronounced by the court as it allowed the petition of a gardener and dismissed the plea of his employer, the Central Secretariat club, on the issue of payment of minimum wages to him as prescribed by Delhi Government.
Justice C Hari Sankar, directed the club to disburse to gardener Geetam Singh the difference in payment between the wages and paid and the minimum wages payable to him under the act from September 1, 1989 to September, 1992, in addition to the amount awarded by the labour court.
The court also directed the club to pay Rs. 50,000 cost to the man for not complying with the labour court‟s order passed 14 years ago directing it to pay Rs. 15, 240 to singh for the period between October, 1992 and September, 1995.
It said the total amount to be paid to the man shall be given with an interest of 12 per cent per annum from the date of award, July 16, 2004 till the date of paying him and directed that the payment should be made within four weeks of the passing of this order.
“ Non-payment of minimum wages, to a workman is unconscionable and unpardonable in law”, the court said, adding”…(the) discussion leaves no manner of doubt that minimum wages are the basic entitlement of the workman, and an industry which employs workmen without paying them minimum wages has no right to continue”,
As per the order, Singh had worked with the club from September 13, 1989 to September 30, 1995
Advocate Anuj Aggarwal, appearing for singh, submitted that the workman was entitled to be paid difference in wages for entire period from September 13, 1989 to September 30, 1995 and the labour court materially erred in limiting the award of differential wages only to the period October 1992 to September 1995.
The club‟s advocate said they were willing to pay Rs. 15,240 awarded by the tribunal, which was the difference between the wages paid to Singh and the minimum wages payable to him, for the period October, 1992 to September, 1995.
However, the court said” such magnanimity appeared to have dawned on the club too late in the day” as despite not obtaining any stay from his court, it was admitted that no payment in accordance with the award has been made to the man and he has been paid only litigation expenses.
NEWS
Industry not paying minimum wages has no right to continue: Delhi High Court
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“This court is, therefore, constrained to observe that any reluctance on the part of an employer, to award minimum wages for a workman for the period during which he had admittedly worked, it is not only illegal and immoral but also invites criminal liability.
“Such an attitude erodes the vary foundations of a socialist society which the preamble of the constitution professes us to be, and belies the promises held out to every citizen by the constitution,” it said. (H. T., 6.11.2017)
One of the youngest professionals and the first Indian to become the CEO of India and south Asia for Japanese Consumer electronics major Panasonic, 45- years –old Manish Sharma when asked about the necessity of an MBA (he does not have one) said “I would rank apprenticeship as the highest qualification, as it not only helps you understand and deal with business but assists you to grow alongside a team while grooming yourself. A business degree is a handbook to learn the skills for its effective handling and segments constituting it. My daily experiences are my biggest source of learning”
India‟s biggest startups are betting on fresh graduates, far more than on experienced talent. Some 57 percent of hiring by the top nine most-funded startups is of such graduates says a study by job portal indeed.
The study analysed job postings between October 31, 2016 and October 31, 2017, for ventures valued at over$ 1 billion in their last round of funding – Flipkart, Hike Messenger, In-Mobi, Mu Sigma, Ola, Paytm, Shop clues, Snapdeal, ReNew Power and Zomato.
Snapdeal emerged as the unlikely top hirer, accounting for 53 per cent of all job postings by the nine companies. The e – Commerce Company had laid off a large number of its employees this year after its failed merger talks with Flipkart. So the hiring numbers perhaps reflect partly an effort to substitute higher cost talent with lower cost ones.
The popular Hindu Business Line reports that the MBAs have an edge over chartered accountants (CAs) in India Inc.‟s CEO club as companies go global, requiring skills beyond financial management.
While the charted accountant (CA) certification was earlier considered a robust qualification for the CEO‟s post, the number of CAs at the top in nifty 100 companies has decreased from 18 to 11 in the last four years.
During the same period, MBAs strengthened their hold over corner offices, up from 28 in 2013 to 45 now, according to the prime database group.
Apprenticeship is the highest qualification
Fresh graduates account for 57% of startup hiring: study
MBAs make better Chief Executive than CAs
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Some of the best-known CEOs and managing directors in India are CAs, including bankers Naina Lal Kidwai, Deepak Parekh, Keki Mistry, Aditya Puri, industrialist kumar Mangalam Birla, George Alexander Muthoot of the Muthoot Group, Rakesh Jhunjhunwala and TV Mohandas Pai. But there is a transformation now as the numbers show.
The Employees‟ State Insurance Corporation is working on a plan to set up societies across states for timely delivery of services to intended beneficiaries towards reimbursement of their medical bills.
Of late, ESIC has been receiving complaints of delays by state agencies to process medical reimbursements and sometimes-even efforts to bury them, said Raj Kumar, Director General, Employees‟ State Insurance Corporation (ESIC), at an industry seminar in Delhi.
The corporation, he said, is firming up a plan to create societies under the society act in all states capitals that will have a mandate to resolve ESIC reimbursement issues of the beneficiaries.
The charm of fetching a job overseas in waning in India as political uncertainty abroad has suffered highly skilled Indian talent to stay at home to look for employment, says a survey. As per a recent data released by global job site indeed, there has been a 38 per cent decrease in Indians looking to move to the US and 42 per cent decrease in Indians eyeing for the UK in the last year. This growing popularity of India as an employment destination is further bolstered by government initiatives such as „Make in India‟ which offers ease of doing business in India.
According to Mercer‟s 2017 India total remuneration survey, companies are likely to dole out 10 per cent salary increase across industries in 2018, consistent with 2016 and 2017. The survey of 791 organisations across industry sectors found that 55 per cent companies intend to hire in the next 12 months, as against 48 per cent last year.
Having a gender diverse workforce could be the flavour of the next financial year. In a study by BTI consultants, based on insights gathered through a market mapping of the Indian business landscape representing over top 100 corporates, nearly 70% of organisations said they would be hiring more women in 2018-19.
ESIC to set up societies in states to fix reimbursement issue
Overseas job charm in declining
2018 to see more hirings, salary rise of 10%
70% cos to up women hires for FY 19: study
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The ministry of labour & Employment is planning to launch a national licence for staffing firms supplying contract workers across industries, a move that seeks to make doing business easier for them. Since staffing firms typically operate from multiple locations, a national licence will help increase formalisation of the workforce.
The licence will be based on a set criterion and renewed every three years. It can be obtained on payment of fees and a bank guarantee as security for due performance of their obligations. At present, staffing firms are required to make a small deposit as security to the government. They are required to seek approvals for hiring contract workers at every location or premises and for every new person hired.
The government and the corporate sector employ a large number of contract
workers, who now account for 55% of public sector jobs and 45% of those in the
private sector. Furthermore, their numbers are on the rise in the country because
they can be paid less than permanent workers and retrenched more easily.
India Inc’s topline growth to hit 5 year high of 9% in Q3, says Crisil Ahead of the start of earnings season, domestic rating agency Crisil today said it expects India Inc‟s revenue growth to hit a five-year high of 9 per cent for the October-December 2017 period. However, profits will continue to contract, primarily due to the rising commodity prices, the note by its research wing said. The aggregate top line of companies in key sectors will grow 9 per cent over same period last year on higher realisations in steel, aluminium, cement and crude oil-linked sectors, and a pick-up in consumption-driven sectors such as auto and aviation, its research wing said. The revenue growth, which comes after a broad based improvement in the preceding second quarter that was taken as a prelude to a cyclical upturn, is ahead of inflation by a meaningful margin now, Crisil Ratings‟ senior director Prasad Koparkar said. After 6% rise in Jan, steel mills see room for more price hikes next month After raising prices by five to six per cent in January, steel mills plan to do so by another Rs. 2,500-3,000 a ton in February, to bridge the gap between domestically produced and landed cost of imported steel, besides other cost pressures. Government-owned NMDC raised iron ore prices this month by 19-22 per cent, one of the steepest ever. This followed similar price hikes by private miners in Odisha due to the suspension of production at five major mines in the state, by Supreme Court order. NMDC had also raised ore prices in December, by 10-13 per cent. In calendar year 2017, the country's largest iron ore miner has raised prices 48 per cent, to match those in international markets. This has prompted steel makers to pass it on to consumers. They raised product prices by up to Rs 2,500 a ton for January to maintain their profit margin.
Government will offer pan – India licence for providing contract workers
Public sector engaging contract labour higher than the private sector
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Internet speed far below what service providers claim: Study A study conducted by a voluntary action group working for consumer rights has found that the internet speed provided to users in the country is far below what is claimed by the service providers, and is amongst the lowest internationally. The study, conducted by the „Consumer Voice‟, has also concluded that consumers are not able to distinguish among poor, average and good quality of service. “A striking finding was that the internet speed the service providers are giving to the users are far below what they claim and amongst the lowest internationally,” the group said in a release. The study has found out that it is not just the provision of service that will help the country become „Digital India‟ rather quality of internet service that determines the sustainability of this vision. New industrial policy in few months: Suresh Prabhu The new industrial policy which seeks to promote emerging sectors will be released within a few months, Commerce and Industry Minister Suresh Prabhu said today. "The new industrial policy should be releasing in next few months," he told reporters here. The proposed policy, the draft of which has been prepared by the ministry, will completely revamp the Industrial Policy of 1991. Among other things, it would endeavour to reduce regulations and bring in new industries currently in focus. The Department of Industrial Policy and Promotion (DIPP) in August floated a draft industrial policy with the aim of creating jobs for the next two decades, promote foreign technology transfer and attract USD 100 billion FDI annually.
World Bank says India has huge potential, projects 7.3% growth in 2018 With an "ambitious government undertaking comprehensive reforms", India has "enormous growth potential" compared to other emerging economies, the World Bank said on Wednesday, as it projected country's growth rate to 7.3 per cent in 2018 and 7.5 for the next two years. India, despite initial setbacks from demonetization and Goods and Services Tax (GST), is estimated to have grown at 6.7 per cent+ in 2017, according to the 2018 Global Economics Prospect released by the World Bank here today. "In all likelihood India is going to register higher growth rate than other major emerging market economies in the next decade. So, I wouldn't focus on the short-term numbers. I would look at the big picture for India and big picture is telling us that it has enormous potential," Ayhan Kose, Director, Development Prospects Group, World Bank, told PTI in an interview.
Govt brings back fixed-term employment, central trade unions to oppose move The Union government has issued a draft notification to allow all businesses to offer fixed-term contracts to workers. This will enable industries to hire workers for short-term assignments and terminate their services once the projects are completed. The Labour and Employment Ministry brought back the proposal, junked earlier last year, after receiving a demand from various quarters of the industry, especially food processing and leather sectors.
India, Israel to expand industry cooperation during Benjamin Netanyahu visit Accompanied by more than 70 industry representatives from sectors such as agriculture, water technology and security, leaders of India and Israel will discuss
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cooperation in the fields of agro-business, water management and security when they meet in New Delhi next week. A visit that comes six months after Prime Minister Narendra Modi‟s visit to Israel, Benjamin Netanyahu would be the second Israeli Prime Minister to visit India since diplomatic relations were established between the two countries in 1992 and it comes after 15 years after the first visit by Prime Minister Ariel Sharon in 2003. Long working hours a challenge for young job seekers, says survey Long working hours, lack of flexibility and need for better compensation are among the challenges cited by young job seekers, according to a survey. Job portal Monster. com‟s survey focused on having a better understanding about the challenges faced by young people – 18-34 years old – while looking for their first job. Around 66 per cent of the respondents found themselves under-prepared in their first job while about 60 per cent left their first job for professional growth and work opportunities, as per the survey titled „My First Job‟. The findings are based on a survey of 4,920 job seekers. FMCG revenue seen rising 14.8% in Q3 on better rural demand Fast moving consumer goods (FMCG) players, who have been benched for the past two years, are expected to see a revenue growth of 14.8 per cent in the December quarter despite flat margins, say a report. The optimism comes from improved consumer sentiment, and gradual rise in rural demand, says a report by report by domestic brokerage ICICI Securities. In the September quarter, the sector clipped at a low 5.2 per cent. "We believe the acceleration in revenue growth is largely attributable to a pick-up in consumer sentiment, gradual demand pick-up in rural areas and also due to a lower base," the report said today. But the brokerage expects gross margins to remain flat with an expected 160 bps rise due to operating leverage benefits and lower other expenditure. We expect post-tax profit to jump 29 per cent," it noted. Thanks to FDI norms tweak, joint audits will boost Indian entities
Companies will now have to go for joint audits in case a foreign investor insists on
having an international auditor, a move that will provide a fillip to Indian audit
entities.
The government's decision is seen as a significant step towards boosting the
prospects of local auditing firms amid the backdrop of Big 4 audit firms holding
sway, especially when it comes to companies where there is an overseas investment.
Following extensive deliberations and an expert panel report related to audit firms,
the government decided to tweak the auditing requirements with respect to
companies having foreign investments.
While relaxing the Foreign Direct Investment (FDI) policy last week, the government
said that there were no provisions in respect of specification of auditors that can be
appointed by the Indian companies receiving foreign investments.
Commerce Ministry working on new support measures for next foreign
trade policy
The commerce ministry is working on new schemes for the next foreign trade policy
(FTP), to be released in 2019-20, with a view to boost exports, a senior government
official said. The ministry has asked all the commodity boards and the concerned
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ministries to identify those “support” structures, which are compliant to global trade
rules. “These support measures could be some schemes or some incentives or it could
be infrastructure related. These measures should benefit maximum number of
industries,” the official said. The ministry has recently released the mid-term review
of the current foreign trade policy. “We have started the work now, so that by the
time we have to come with the new FTP, we would be ready with the final blueprint
as we have to consult finally with the finance ministry,” the official added. The five-
year foreign trade policy provides guidelines for enhancing exports with the overall
objective of pushing economic growth and generating employment.
First labour code on wages likely to be passed in budget session
Looking to bring a wave of labour reforms this year, the government will push its
first labour code -- Wage Code Bill -- in the forthcoming budget session which would
enable it to set benchmark minimum wage for different regions. "Wage Code Bill will
be the first labour code which would be pushed for passage in the budget session.
Labour ministry is expecting Parliament's select committee to table the bill in the
budget session beginning by the end of this month," a source said. The draft Code on
Wages Bill 2017 was introduced in the Lok Sabha in August 2017. Thereafter, it was
referred to the select committee for scrutiny.
'India to post average GDP growth of 7.3 per cent over 2020-22'
The Indian economy is expected to witness an average GDP growth of 7.3 per cent
over 2020-22, says a Morgan Stanley research report. According to the global
financial services major, the structural growth story in India remains strong from a
medium term perspective. "The uptick in the private capex cycle, which we anticipate
will begin in 2018, will ensure that the economy enters into a sustained and
productive growth cycle," Morgan Stanley said in a research note, adding that over
2020-22, it expects the economy to post an average GDP growth of 7.3 per cent.
Moreover, the overall policy mix will also remain supportive of a further
improvement in productivity, which will help keep macro stability risks limited, it
added.
Jittery over Govt’s anti-profiteering drive under GST, firms may move court Anxious over the government's anti-profiteering drive under the goods and services tax regime, companies in the segments of fast-moving consumer goods (FMCG) and information technology (IT) software are planning to petition the high courts in Delhi and Mumbai, seeking more clarity on the clause. While the government has not yet prescribed rules or guidelines to compute profiteering, it has sent notices to some companies, including Hard castle Restaurants, Lifestyle, and Pyramid Infratech. “There is a lot of ambiguity in the anti-profiteering clause," said a representative of an FMCG company, who did not wish to be identified. He said product prices were not based on taxes alone but on supply and demand conditions, supplier cost, and other factors.
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Govt plans comprehensive review of functioning of independent
directors
The government plans to carry out a comprehensive review of the functioning of independent directors, including analysing the reasons for their exit from the boards of companies, as part of efforts to strengthen the corporate governance framework. The corporate affairs ministry, which is implementing the Companies Act, is also looking to bolster the regime for independent directors and might also take a relook at certain regulatory requirements pertaining to their appointment and removal, a senior government official said. Besides, the ministry would be creating a database of independent directors under the Companies Act, 2013.
Exempt export units from 'sunset clause' to boost trade: SEZs to govt
Exporters of goods and services from designated export-oriented units (EOUs) and special economic zones (SEZs) have urged the government to exempt export-centric and employment-generating units from the sunset clause, to boost exports of goods and services from India.
In a letter addressed to the Union Finance Minister Arun Jaitley, the Export Promotion Council of EOUs and SEZs said that frequent change in government policies has led to a „trust deficit‟ in such export promotion zones, affecting fresh investments from domestic and overseas investors.
Introduced in 2005, the SEZ Act had attracted huge investments in its initial years. But then, the Congress government levied Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) in 2012. These levies worked as a speed breaker for capital inflows into these zones, which were initially planned to be tax free.
India likely to see growth of 7-7.5 pct in 2018/19 fiscal year There is robust and broad-based revival in the Indian economy that coexists with macroeconomic challenges, chief economic adviser Arvind Subramanian, who presented the Economic Survey 2017-18 on Monday, said at an interaction. Edited excerpts: On Fiscal Consolidation This has been an unusual year because of demonetisation and GST. This is well known... There are no surprises... If activity is picking up, inflationary pressure is mounting. On Interest Rates The Indian economy could have for about a period of 18 months benefited from lower interest rates, in the period when we had really high real interest rates and the economy was weak. On Rising Crude Oil Prices We had thought that oil would not go above $55-60 per barrel. We have been proven wrong on that and we should admit that. On Growth There is robust and broad-based revival in the Indian economy. The direction is very good, but the growth is still below potential. When we give a range between 7 and 7.5%, it is because there are factors working both ways. Unless we get more data I don't want to assign probabilities to where we are going to be. Leadership changes likely in some public sector banks The government is considering a comprehensive reshuffle of top executives at state-run lenders, days after it unveiled a reform agenda linked to its recapitalisation plan.
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A senior finance ministry official confirmed that managing directors and chief executives of about four public sector banks (PSBs) may be moved as their performance has not been up to scratch. This is meant to send a signal to others. "Their performance is under review. Most of these lenders are already under the RBI's prompt corrective action (PCA) plan and if required we will make some leadership changes," he said. Last week, the government announced it will give Rs 88,000 Crore of capital support to 20 state-run banks in the current fiscal. This infusion is contingent on their performance and the changes they make. These will be evaluated by the respective bank boards. Government to bring over 10 crore BPL people under new health insurance scheme Few industries get an opportunity to grow by a third in one stroke, but the general insurance industry has, thanks to the budgetary proposal of providing health cover to a huge population. The industry has an annual premium opportunity of between Rs 30,000 crore and Rs 50,000 crore, as the government plans to bring over 10 crore people below the poverty line under a health insurance scheme and enhance health insurance cover to Rs 5 lakh from Rs 30,000. "The new health insurance scheme announced has the potential to match, if not dwarf, the crop segment, which saw momentous growth during the last two years," said Alice Vaidyan, chairman, General Insurance Corp Re. Currently, the Rashtriya Swasthya Bima Yojna provides an annual coverage of only Rs 30,000 to poor families. The average premium paid per policy is around Rs 500.
Manufacturing growth slips to 3-month low in January: Survey Manufacturing sector grew at its slowest pace in three months in January as factory output, new business orders and employment rose at slower rates, a monthly survey said today. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell from December's 60-month high of 54.7 to 52.4 in January, indicating modest improvement in operating conditions across India's goods producing economy. This is for the sixth consecutive month that the index remained above 50-point-mark that separates expansion from contraction, but the rate of expansion is lowest in three months. "Following December's stellar performance, growth in the Indian manufacturing economy lost some impetus, reflected by slower growth in output, new orders and employment," said Aashna Dodhia, Economist at IHS Markit and author of the report.
Budget 2018: Govt's subsidy burden to go up by 10% to Rs 2.93 trillion The central government‟s subsidy burden is expected to rise by about 10 per cent to Rs 2.93 trillion in 2018-19, primarily due to a 21 per cent increase in food subsidy. Fertiliser subsidy is expected to rise by eight per cent and petroleum subsidy only marginally. Interest subsidy is to go down by 11 per cent to Rs 209.2 billion. There will be a 35 per cent scale-up in expenditure on account of the subsidy requirement under the National Food Security Act. A provision of Rs 1.38 trillion has been made; the current financial year is likely to end with Rs 1.02 trillion. Overall, the food subsidy is estimated to shoot up to Rs 1.69 trillion, from the Revised Estimates of Rs 1.4 trillion in the current year. In 2016-17, the government spent Rs 1.1 trillion on this. Indian economy to grow at 8.5 pc in FY19: Power Min India's economy will grow at 8.5 per cent next fiscal and the 7.5 per cent growth projection by economists is on the "conservative side", Power Minister RK Singh said
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today. "The economists are saying that our growth rate will touch 7.5 per cent in the coming financial year. I think that they are even on the conservative side. Growth will touch at least 8.5 per cent," Singh said while addressing the 7th India Energy Congress. "India is on the cusp of becoming a great prosperous country. The momentum has started. The last quarter results show that. The adaptation to GST (Goods and Services Tax) regime has happened. There is growth in GST collection. There is 50 per cent increase in GST tax base. Income Tax department has tech to trace black money, tax criminals: CBDT chief The Income Tax (IT) department possessed the technology to track suspicious transactions and black money and it would go after all those who were indulging in these crimes, the CBDT chief said today. Calling it a "big challenge" for the department to bring the tax evaders into the IT net, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said they were getting all the required information from the banks and other establishments as part of their measure to check tax evasion. "The department's action, post demonetisation, is for everyone to see. We undertook a number of steps that also included enforcement action. We have issued about two lakh notices to those who have made deposits of over Rs 15 lakh post the note ban, but have not responded to our messages. Digital transactions continue to grow in January Continuing its strong growth momentum, Unified Payments Interface (UPI) has clocked 151.8 million transactions for the month of January against 145 million transactions reported last month, growing 4.6%. Though the growth trend has maintained, the rate of growth has fallen from almost 40% which it had clocked last month. Similarly as per data released by the government, the total value of transactions undertaken digitally for the current financial year stood at almost Rs 4.4 lakh Crore, with BHIM (Bharat Interface for Money) clocking a daily volume of 2.8 lakh. Further releasing data around Aadhaar Enabled Payments, the ministry of electronics and IT (Meity) also said that including both financial and non-financial transactions, the total had reached 1 billion. Making of an insurance giant: Government plans to merge three of its unlisted insurance firms The government plans to merge three of its unlisted general insurance companies to create a behemoth that will control a third of the non-life insurance market and be listed on stock exchanges to fetch better valuation. National Insurance Company, United India Insurance Company and Oriental India Insurance Company will be merged, an entity that could be a dominant player in the Rs 1.5-lakh-crorea-year motor, health and industrial insurance industry, which is seeing intense competition from private players. The listed state-run New India Assurance is the largest with a market share of 15%. "The merger will lead to higher retention capacity," said G Srinivasan, chairman, New India Assurance. "Subsequent listing and raising of capital will make them stronger. It will reduce the competitive intensity and will lead to better pricing and better underwriting profitability." FICCI lauds government's initiatives for MSME, agri sector The impetus to the rural economy and the overall agriculture sector in the Union Budget would be a force multiplier for overall growth in the coming years, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Thursday. "The budget is very much in line with the expectations of FICCI. It will
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drive consumption in a big way, thus helping growth in other related sectors. Additionally, the attention to the MSMEs through better access to finance or lowering of the corporate tax rate would also help spur both employment and growth in this vital segment of the economy," said FICCI President Rashesh Shah. Shah further said the stress on job creation in the Budget will help generate meaningful employment going ahead.
Government allocates Rs 5.97 lakh Crore for infra spending in 2018-19 Terming infrastructure as growth driver of the economy, Finance Minister Arun Jaitley today announced an allocation of Rs 5.97 lakh Crore for 2018-19 for infra spending, up by over Rs 1 lakh Crore from the on-going fiscal. Presenting the Union Budget 2018-19 in Parliament, Jaitley said the priority accorded to the sector was evident from the fact that Prime Minister Narendra Modi is personally monitoring infrastructure project targets and achievements. "Infrastructure is the growth driver of the economy. Our country needs massive investment in access of Rs 50 lakh Crore in infrastructure to increase growth of GDP and integrate the nation with a network of roads, airports, railways, inland water and to provide good quality services to the people," the finance minister said. For Indian Railways, he said the government has allocated capital expenditure of Rs 1,48,528 Crore for 2018-19, and all trains will soon have state-of-the-art facilities such as Wi-Fi and CCTVs. Wealth migration; 7,000 super-rich Indians shifted base in '17 India witnessed the second largest number of millionaire outflow globally after China with 7,000 high net worth individuals changing their domicile during 2017, 16 per cent more than last year, according to a report. According to the report by New World Wealth, 7,000 ultra- rich Indians shifted overseas in 2017. In 2016, the figure stood at 6,000, while in 2015 as many as 4,000 millionaires shifted base. Globally, as many as 10,000 super-rich Chinese changed their domicile in 2017. Other countries that witnessed large high net worth individual (HNWI) outflows include Turkey (6,000), United Kingdom (4,000), France (4,000) and Russian Federation (3,000). As per the migration trends, Indian HNWIs moved to the US, the UAE, Canada, Australia and New Zealand, while Chinese HNWIs moved to the US, Canada and Australia. Investment by heavy industry PSUs halved to Rs 4.3 billion in FY19 The investments by as many as 18 state-run firms under the heavy industry ministry are halved to Rs 4.37 billion for 2018-19 as compared to Rs 8.83 billion budgeted for the current fiscal. The government had estimated an expenditure of Rs 3.74 billion for the 18 PSUs, including BHEL, Cement Corporation of India and Hindustan Salts in the revised estimate of 2017-18. According to the Expenditure Budget, the government had budgeted Rs 3.7 billion for state-run power equipment maker BHEL in the current financial year, which was revised downwards to Rs 2.96 billion, and has been further slashed to Rs 2.25 billion in the 2018-19. The investment by Cement Corporation of India is pegged at Rs 422.8 million in 2018-19, higher than the revised budget estimate of Rs 22.17 Crore in the current fiscal ending March, according to the Budget presented by Finance Minister Mr. Arun Jaitley.
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Corporate tax to come down to 25% once exemptions end, says Arun
Jaitley
Finance Minister Arun Jaitley said today that corporate tax rate can be brought down
to the promised 25 per cent only after all the exemptions given to the industry have
ended. Speaking at a post-Budget meeting, organised by industry body FICCI, he said
he had in 2015 promised to cut corporate tax rate to 25 per cent, from 30 per cent, in
four years. Jaitley added however that he had also set a condition -- all exemptions
would have to go.
It would not be proper to end exemptions midway as some industries may have been
set up based on them, he said. And therefore, the opportunity to reduce the corporate
tax rate to 25 per cent will arise when all the exemptions end in the due course, he
said.
Services sector sees fastest growth in 3 months in January: PMI
A recovery in new orders propelled the services sector to its fastest growth in three
months in January, a private survey showed on Monday. Job creation accelerated to
the second strongest in more than six and a half years. The Nikkei/IHS Markit
Services Purchasing Managers' Index rose to 51.7 in January from 50.9 in December,
above the 50 mark that separates growth from contraction. "The recovery across
India's service sector continued during January, with growth in output picking up to
the joint strongest since June 2017 as underlying demand conditions improved," said
Aashna Dodhia, economist at IHS Markit.
Tax department receives 15-25 lakh PAN applications per week
The Income-Tax Department (ITD) receives 15-25 lakh Permanent Account Number
(PAN) applications per week, and takes a few hours to two weeks to allot the 10-digit
alphanumeric identifier, the government has informed Parliament. The allotment of
PAN is being carried out by the tax department through two service providers, NSDL
e-Gov and UTIITSL, which collect applications, process them, digitise the data and
submit the same to ITD for final allotment of PANs. Subsequently, physical PAN card
and/or e-PAN card is issued to the applicant. "Presently, on an average, 15-25 lakh
PAN applications are being received per week.”The time taken for processing these
applications and allotment of PAN generally ranges from few hours to two weeks,"
Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Lok
Sabha.
Interest rates may rise in future, says PNB chief
Ahead of RBI's monetary policy review tomorrow, Punjab National Bank Managing
Director Sunil Mehta said lending rates are likely to go north due to hardening
inflation. "As of now interest rates are stable but the way inflation is moving, they are
likely to harden in the future," he said after announcing the third quarter numbers.
This seems to be a good news for the savers. However, borrowers will have to shell
13
out extra if the lending rates go up. RBI will unveil its bi-monthly policy tomorrow
amid widespread expectations that the central bank may go in for a status quo for the
third time in a row.
884 companies under scanner in money laundering cases: Union
Minister P P Chaudhary
As many as 884 companies are under the scanner in various money laundering cases
and assets worth Rs 5,000 Crore have been attached following probes initiated as per
the PMLA, Union Minister P P Chaudhary said today. However, he said that not a
single company has been deregistered on the charges of money laundering by the
government.
As per the inputs supplied by the Finance Ministry, "884 companies are under
investigation in various money laundering cases," the Minister of State for Corporate
Affairs said in a written reply to Rajya Sabha. He further noted that investigation
against these companies has resulted in attachment of assets worth Rs 5,066.3 crore
and filing of a total of 58 prosecution cases under Prevention of Money Laundering
Act (PMLA).
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1.
2017 III CLR 840 in the Supreme Court of India September 21, 2017
Civil Appellate Jurisdiction Civil Appeal no. 4681 of 2009 presents the
Honourable Mr. Justice Arun Mishra the Honourable Mr. Justice
Mohan M Shantanagoudar Employees’ State Insurance Corporation &
Anr. (Appellants) V. Mangalam Publications (I) Private limited