Mining Verdict May Cost Firms Rs 1 Lakh Crore, Karnataka Bans Govt Accounts In PNB, SBI

Mining Companies May Need To Take Rs 1 Lakh Crore Hit On Tax-Royalties Verdict

The Centre is expecting a hit of over Rs 1 lakh crore on mining companies because of retrospective applicability of the Supreme Court order allowing state governments to levy taxes besides royalty on mining operations, the Economic Times reported.

Estimates from the mining industry peg the total payout at much higher. According to B K Bhatia, Additional Secretary General at the Federation of Indian Mineral Industries (FIMI), the Indian mining industry as arrears may work out to the tune of more than Rs. 1.5 to Rs. 2 lakh crores. After Wednesday’s verdict, State governments are allowed to levy additional taxes on mining operations from April 1, 2005. Read more 

Byjus’s Returns To Insolvency Administrator After Supreme Court Stays NCLAT Order

The Supreme Court on Wednesday revived insolvency proceedings against Byju's by putting a previous tribunal order on hold, in a victory for US lenders that say they are owed $1 billion by the education technology company, Business Standard reported.

The Supreme Court order is a setback to company founder Byju Raveendran who earlier this month regained control of the startup that was once India's most valuable at $22 billion. The company was undergoing insolvency proceedings following a complaint by India's cricket control body which said it was not paid sponsorship dues. The two sides subsequently settled the dispute and an appeals tribunal halted the insolvency proceedings. A revival of the proceedings will put control of the company back in the hands of a court-appointed insolvency administrator. More here 

Karnataka Issues Directions To Shut Govt Bank Accounts In SBI, PNB By Sept 20

The Karnataka government has ordered all its departments to close their accounts in SBI and PNB, Moneycontrol.com reported.

All state departments have been directed to close accounts and recover deposits. No further deposits or investments will be allowed in these banks. The decision has been taken over alleged misappropriation of funds. The state government has set September 20 deadline for all departments to comply. This action follows reports of two fraudulent transactions. The first involves a fixed deposit of Rs 25 crore at PNB’s Rajajinagar branch, started by the Karnataka Industrial Area Development Board on September 14, 2011. The second case involves a Rs 10 crore fixed deposit at the former State Bank of Mysore, now part of SBI. More here

Car Sales Dip For the First Time In 2.5 Years, Two-Wheelers Grow In Double Digits

Sales of passenger vehicles fell for the first time in more than two years in July on a high base worsened by sluggish demand and inventory glut at dealerships, th Economic Times reported.

Two-wheelers, however, grew in double digits, and three wheelers in low single digits, helped by steady recovery in rural demand, on a low base. 
Passenger vehicles crossed the pre-pandemic sales peak of 3.38 million units in FY19 in the last financial year, driven by pent-up demand. While car sales have slowed since, two-wheelers and three-wheelers which are yet to breach pre-Covid records are steadily recovering due to a turnaround in rural demand. Passenger vehicle sales el last in February 2022. More here 

Tamil Nadu Set To Open China-Like Housing Project For 18,720 Women 

The Tamil Nadu government is set to unveil a housing initiative for 18,720 women employed by Taiwanese tech giant Foxconn, a key supplier to iPhone-maker Apple, this Saturday, Business Standard reported.

 The project, located at Vallam Vadagal near Chennai, marks the first time an Indian state government has constructed a hostel of this scale for a private firm — a model that’s been successful in China and Vietnam. But that’s not all — the Tamil Nadu government will also operate and maintain this 20-acre housing complex for Foxconn workers. Chief Minister M K Stalin will inaugurate the complex, with the chairman of Foxconn, Young Liu, in attendance.  More here 

Bankers Worried Over New RBI Rules Hurting Profitability In Next Fiscal

Bankers are sweating over what is likely to be a tough time in the next fiscal year as the Reserve Bank of India (RBI) is expected to unleash stringent rules, the Economic Times reported. 

The tightening provisioning requirements for project finance, introducing a new expected credit loss (ECL) framework and imposing a higher liquidity coverage ratio (LCR) for deposits to hedge against sharp outflows through digital channels are seen as fetters by bankers. The central bank is expected to introduce these rules later this year and bankers are worried they will hurt profitability in the medium term. In the draft guidelines, RBI asked all regulated entities to set aside 5 per cent of their infrastructure loan amounts to cover against potential losses when a project is in the construction phase. More here