Farmers get credit cards from FM
AMBALA, June 17 — Finance Minister Yashwant Sinha said here today that there was an increasing demand for kisan credit cards in the country and six lakh credit cards were distributed among the farmers during the last financial year.

Easier way to pay bills
NEW DELHI, June 17 — Essar Cellphone today announced the launch of the country’s first electronic clearing system that will enable its subscribers to automatically pay their monthly bills from their local bank account.

Bank’s fund for Kargil
MUMBAI, June 17 — Indusind Bank’s Board took a decision today to create an Indusind relief fund with an initial contribution of Rs 5 lakh.

Trains to Pakistan save exports from bullets

AMRITSAR, June 17 (UNI) — The fear psychosis generated following the stationing of troops by both India and Pakistan on their respective borders has adversely affected business and trading activity in this holy city, which is the nearest business centre to the Indo-Pakistan border.

Perhaps the worst hit is the textile and carpet manufacturing industry with stocks piling up in the premises of the units. Bhola Singh, who runs a unit in the Putligarh area of the city manufacturing gents suitings said that “the fear of war has led to a sudden decline in the purchasing capacity of the local wholesale dealers.”

“Shopkeepers are eager to get rid of the existing stocks with them before placing new orders, Mr Singh said.

The border tension is also keeping away traders from the neighbouring States.”

“Routine customers from the rural areas who used to throng the city are keeping away and not willing to spend”, he added.

The panic generated following large-scale migration from the border belt has led to a sharp decline in deposits in Banks in the border districts of the State.

Mr Santokh Singh Senior Regional Manager of Canara Bank, while admitting this, said that people want to keep enough money at home for emergency.

The banks in Bhikhiwind, Khem Karan, Khalra, Patti and even Tarn Taran have in the last couple of days witnessed a sharp increase in withdrawals (of money). The escalation of tension has also led to a decline in real estate rates in the city.

According to Mr K.J. Singh, Manager of International Hotel, there has been a fall in the number of tourists visiting the city after news of the exodus from the border villages hit the media.

Interestingly, the current border tension does not have much of an impact on the Indo-Pakistan trade which takes place through the rail route.

According to Mr Davinder Singh, President of the Amritsar Exporters Chambers of Commerce, there has been only a 5 to 10 per cent decline in imports from across the border but exports have remained unaffected.

Mr Davinder Singh said that the reason for the decline in imports is that banks have stopped entertaining the letters of credit being sent by the Pakistani exporters.

The banks have taken this decision on their own and that there are no directions from the RBI in this regard, he added.

In the rural areas too the border tension has had its effect with the migratory labour from Bihar boarding the trains back to their destinations far away from the border.

The farmers who have still not completed the paddy sowing will now have to depend on local labour which is expensive.

PNFC: a patient none wants to save

NEW DELHI, June 17 (UNI) — The BIFR has formed a prima facie opinion to wind up the State-owned Punjab National Fertilisers and Chemicals Limited (PNFC) with no party showing any interest in rehabilitating the sick company.

In a recent hearing, the Board noted that the company had been with the BIFR since 1987 and the scheme sanctioned for its rehabilitation had failed. The sole dependence of the company on subsidy for its survival indicated that there were hardly any prospects for the company.

Even the advertisements issued for change of management and IDBI’s (operating agency) personal contacts with parties considered capable to take over the sick company had not elicited any suitable response.

Further, neither the company’s CEO nor anyone from the Punjab State Industrial Development Corporation and the Government of Punjab were present at the crucial hearing. This indicated that no one was interested in its revival, the Board noted. On the other side, the company’s assets were dwindling without any concrete funding plans and proposal for revival.

The Board regretted that IDBI has not deputed officials conversant with the company’s history. Moreover, IDBI had not prepared any rehabilitation proposal even after one and a half years was given to them.

Earlier, PNFC’s General Manager R.K. Mendiratta had to cut a sorry figure when he submitted that PNFC’s Managing Director was not present in the hearing as he was busy elsewhere. This was even while the company’s total liabilities stood at a whopping Rs 185 crore according to the March 1999 provisional figures.

The present realisable value of the company’s assets would be around a mere Rs 100 crore.

The board noted with concern that the company’s financial position was precarious and there were no indications as to how the shortfall of Rs 85 crore would be met on account of the mismatch of assets and liabilities to restart the operations.

But banks and financial institutions submitted that the plant was functioning only intermittently. During the last quarter, the stocks hypothecated to the banks were depleted for meeting the fixed expenses of the company and even the sale proceeds were not being routed through the banks.

The creditors submitted to the Bench that the company had no concrete plan to meet the shortfalls and the promoters PSIDC and the Government of Punjab had not come forward to infuse fresh funds during the last 10 years and only banks were being asked to support the holding on operations of the company.

The Bench rejected the company representative’s plea to give some more time and working capital as it was providing sustenance to 500 employees and formed a prima facie opinion to wind up the sick /state-owned PNFC.

Farmers get credit cards from FM
Tribune News Service

AMBALA, June 17 — Finance Minister Yashwant Sinha said here today that there was an increasing demand for kisan credit cards in the country and six lakh credit cards were distributed among the farmers during the last financial year.

He was speaking at a function organised by various banks. He distributed 225 kisan credit cards to farmers.

Mr R.C. Agrawala, SBI General Manager, Chandigarh Circle, said that 4,271 cards had been issued by the bank in Haryana. The SBI has extended loans of Rs 294.52 crore for the agriculture and allied sectors in Haryana as on March 31, 99.

Addressing a function after inaugurating the regional office of Oriental Insurance Company Ltd here, Sinha said that the Kargil situation will have negligible effect on the economy, while Pakistan’s economy has reached the brink of bankruptcy due to its misadventure.

Had the IMF not come to the rescue of Pakistan, its economy would have been totally shattered, he said while addressing a function after inaugurating the regional office of Oriental Insurance Company Ltd here.

UP Governor Suraj Bhan said that efforts will be made to obtain approval to open the Air Force station here to civil air traffic so that Haryana can come on the air map of India.

The others who spoke included Haryana Social Welfare Minister Kamla Verma, Deputy Speaker F.C. Aggarwal, Mr D. Sen Gupta, Chairman GIC, and Mr S.N. Mathur, Chairman-cum-Managing Director, Oriental Insurance Company.

Easier way to pay bills
Tribune News Service

NEW DELHI, June 17 — Essar Cellphone today announced the launch of the country’s first electronic clearing system (ECS) that will enable its subscribers to automatically pay their monthly bills from their local bank account. The ECS service is a time and money saver as the subscribers need not issue cheques or go to the company’s collection centres and stand in a queue to make the monthly bill payments.

Bank’s fund for Kargil

MUMBAI, June 17 (PTI) — Indusind Bank’s Board took a decision today to create an Indusind relief fund with an initial contribution of Rs 5 lakh.

The proceeds of the fund will go to the benefit of the Indian soldiers fighting in Kargil.

The employees of the bank have also voluntarily agreed to forego a day’s salary to contribute to this fund, a bank statement said.

by Pushpa Girimaji
Buying a plot? Watch your interest

WHEN state-run housing boards and land development authorities call for applications for allotment of plots and houses, applicants are invariably asked to deposit an initial amount towards the allotment. Those who are unsuccessful in the draw of lots are returned their deposits, but often after a long delay. Yet these statutory bodies do not pay any interest on that amount. Those who protest are shown the application form in which one of the conditions stipulated would be that no interest is payable on the earnest money or initial deposit.

Take the case of Haryana Urban Development Authority vs Ms Nalini Aggarwal. Here, HUDA called for applications for allotment of houses and Ms Aggarwal applied in April 1993. The last date for accepting the applications was May 31. However, the lots were drawn only on June 7, 1994. Since Ms Aggarwal was unsuccessful in the draw, HUDA returned the earnest money deposited by her on July 20, 1994, but paid no interest on the amount lying with it for more than a year.

Following Ms Aggarwal’s complaint, the consumer court directed HUDA to pay interest. However, the Supreme Court, before which HUDA filed an appeal, disagreed with this decision of the consumer court. It pointed out that one of the conditions imposed in the notification inviting applications for allotment was that “no interest shall be payable on the money of the applicant for the period for which the same is lying with the authority”. Having accepted the above condition while applying for allotment, Ms Aggarwal was not entitled to payment of interest, the apex court said.

Of course one can argue here that when one accepts the condition that no interest would be paid on the earnest money, one expects the draw of lots to be held within a reasonable time of, say a month, and not after a year and that it is unreasonable and unfair, particularly for a statutory body, to keep consumers’ money for over a year and earn interest on it, without in turn paying any interest to the applicants.

Subsequently, in the case of Haryana Urban Development Authority vs Ms Veena Kakkar too, the National Commission changed its earlier order and held that consumer courts could not modify the terms of the contract between the parties that no interest was payable on the earnest money deposited.

However, it could award varying rates of interest on the amount as compensation, if deficiency and negligence on the part of the opposite party was established in the draw of lots or in refunding the earnest money, the Commission said. Here the deposit of Rs 51,000 paid by Ms Kakkar towards two applications under different schemes had been returned after six to seven months, but without any interest.

Since the apex court judgements are really not in favour of consumers, there is need for consumers to pressure the State Governments to change the terms of contracts drawn up by these statutory authorities so that every unsuccessful applicant is paid interest on the initial deposit. In addition, whenever consumers apply for such allotments, they should also write a separate letter to the head of the statutory body, pointing out the unfair terms in the contract and demanding that they be modified to make them fair to both the parties.

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AirTel
NEW DELHI, June 17 (TNS) — AirTel, has introduced a new Calling Line Identification Presentation advantage for its customers. Under the new facility, made available from today, AirTel customers’ handsets will display the national, international and city codes as prefix to the number on incoming calls.

Oriflame
NEW DELHI, June 17 (TNS) — Oriflame India Pvt Ltd today announced the launch of its new range of products in the skin, hair and colour range of cosmetics. Oriflame, which markets its products through a direct selling system instead of through retail outlets and door-to-door sales, had till now been marketing only products for the medium and upper segment of the consumers. The new products include a fairness cream, shampoo, hair oil, Denim nail polish and lipsticks.

TimesBank
CHANDIGARH, June 17 (TNS) — TimesBank has entered into a tie-up with MasterCard International for their ATM network known as Cirrus and debit-card franchise known as Maestro. This will enable customers to withdraw cash at any of the Cirrus ATMs across the country. Maestro is the global point of sale debit card franchise which enables the customers to purchase goods at any of Maestro affiliated merchant establishments.