 |
| Sunday, September 24, 2000, Chandigarh, India   
|
Cabinet okays DA instalment for employees NEW DELHI, Sept 23 — The Union Cabinet today approved another instalment of dearness allowance and dearness relief to Central Government employees and pensioners, which was due from July 1, this year. Mukesh Ambani is Ernst
and Young Entrepreneur of the Year
Set up board to check sickness Property business revives in city
Why sudden spate of IPOs? Deposits rise in Ambala region |
|
|||||||||||||||||||||||||||||||||
|
|
Cabinet okays
DA instalment for employees NEW DELHI, Sept 23 — The Union Cabinet today approved another instalment of dearness allowance and dearness relief to Central Government employees and pensioners, which was due from July 1, this year. Cabinet spokesman and Union Minister,Mr Pramod Mahajan said the DA worked out on the basis of the percentage increase in consumer price index of 12 months worked out to 41 per cent. Since the government employees are already getting 38 per cent DA, they would get another 3 per cent. The increase in DA would cost the Centre Rs 888 crore annually while dearness relief to pensioners would involve a financial implication of Rs 306 crore a year. DA is revised twice a year from January 1 and July 1. The Cabinet also approved a proposal for rollback of retirement age of board level and below board level employees of National Textile Corporation and its subsidiaries from 60 to 58 years with immediate effect. The decision would be
implemented after giving a notice of three months to the employees. This would save the Government Rs 62 crore per annum in wage bill and account for the exit of 4370 employees. The 119 mills of NTC employs 87,000 people. The Union Cabinet approved a special purpose vehicle under the Companies Act, 1956, for taking up work of gauge conversion between Surendranagar and Bhavnagar and another 14 km line from Bhavnagar to the port of Pipavav, which is coming up in the private sector. The SPV would have equity participation in the ratio of 50:50 by the Railways and its other organisations and the Gujarat Pipavav Port Ltd and its associates. The project would cost Rs 294 crore. The new line to the port would be able to carry 10 million tonnes of cargo traffic in the next five years. The Cabinet also decided to modify the formula for working out the productivity linked working bonus. The weightage of passenger and luggage in calculating revenue earned per kilometre has been enhanced and suburban traffic has been excluded from the calculation. This would be with effect from 1998-99. However, there bonus days would continue to be 55. Exchange of letters with Bangladesh for setting up a cement project of 1.2 million tonnes capacity per annum and an ordinance to amend the NABARD 2000 to enable the bank to
issue bonds were among the decisions taken by the Cabinet. Mr Mahajan said the Government also approved a proposal to allow Telecommunications Consultants India Ltd to participate in a joint venture, named Airtel Communications, in Kenya. Of the eight regions offered for bidding by Kenya, TCIL has won five regions. This would involve an investment of $ 21.9 million. The Kenyan Government allows 40 per cent foreign equity participation in its telecom projects while 60 per cent is received for Kenyans. Another proposal cleared by the Cabinet was the decision to wind up the public sector computer firm Electronics Trade and Technology Development Corporation Ltd (ET and T) as it has been consistently making losses since 1993. The Cabinet decided to provide a budgetary support of Rs 8.47 crore for offering Voluntary Retirement Scheme to the 288 employees of the company. The liquidation of the company would be done as per the provisions of the Companies Act, 1956. |
|
Mukesh Ambani is Ernst
and Young Entrepreneur of the Year NEW DELHI, Sept 23 — Mr Mukesh Ambani of the Reliance group, who has been responsible for setting up the country’s biggest greenfield refinery in the private sector in Gujarat, is the Entrepreneur of the Year-2000, instituted by international consultancy firm Ernst and Young, India. Mukesh Ambani was chosen from a shortlisted list of 30 top first generation entrepreneurs in the country. Ernst and Young India Chairman, Mr Kashi N.Memani said an eminent jury headed by the HFDC Chief, Mr Deepak H.Parekh, selected the winners of the second Ernst and Young awards. One of the world’s richest man, Mr Azim Premji of Wipro, was adjudged Master Entrepreneur of the Year. Former Union Finance Minister, Mr P. Chidambaram and Aditya Birla Group Chairman and Managing Director, Mr Kumar Mangalam Birla, gave away the awards. Ernst and Young India also instituted industry awards for entrepreneurs in manufacturing, services, information, communications and entertainment (ICE) and healthcare and lifestyle. Mr Sunil Bharti Mittal, Chairman and Group Managing Director of Bharti Enterprises was adjudged the Entrepreneur of the Year-2000 in the ICE category in recognition of his efforts in leading the new economy in India. Mr Arun Kumar of Strides Arcolab won the honour in the manufacturing category while Naresh Goel of Jet Air won the Entrepreneur of the Year award for the services category. The award for the health and life style category went to Mr K.I. Varaprasad Reddy of Shanta Biotechnics. Mr Dewang Mehta of Nasscom won the honour for the Manager Entrepreneur of the Year while Mr Suresh Rajpal of Trigyn Technologies was selected for the Startup Entrepreneur of the Year award. Mr Chidambaram in his key note address said for 40 years Indians were conned into thinking that the State alone can do good business. In the process a great tradition of entrepreneurship was overlooked and it was not surprising that India today was amongst the poorest country in the world. He said the decision of the Government to divest its stake in Air India and Indian Airlines was a recognition of the fact that the Government should not be in business and it has failed. Fortunately after the country initiated reforms, there is still hope as the entrepreneurial spirit of the Indian has not died. The world is beginning to take note of them and the “strirrings we see now will take India to a higher growth path”. Mr Kumar Mangalam Birla said in his address as chief guest that there was a need to encourage entrepreneurship at the grassroot level. Entrepreneurs should be encouraged to look at new areas rather than follow tradition and be innovative. There was a need to look upon entrepreneurs as role model in the society.
|
|
Set up board to check sickness GROWING sickness in the SSI sector is a cause of great concern. Many states have taken effective steps to check this trend. Punjab is yet sleepy on this issue although the entire SSI sector in the state is in turmoil. In the current economic regime flooding of imported goods at the prices much below the economic level is the main concern. Secondly our own products are being subjected to anti-dumping measures. So this tool as it were cuts on either side. Although we have Directorate General of anti-dumping and allied duties but smaller units are able to build up case against cheap imports. At the moment China is flooding our markets. Many products of Punjab’s units are coming under this threat. The Punjab Government should set up expert group to assist SSI units to prove cases of dumping. Punjab’s units export many products to the U.S.A. Many of these products are subjected to anti-dumping laws. Fortunately enough the U.S.A.’s anti-dumping law of 1916 has been found
incompatible with W.T.O. provisions. Although Japan and the E.U. challenged the U.S.A. in the W.T.O. Appellate body but India and Mexico also made a submission to the W.T.O. panel. It is interesting to know how the proponents of globalisation are behaving to hit the developing countries. The U.S.A.’s 1916 Act allows civil and criminal proceedings to be brought against importers who have sold foreign goods in the U.S.A. at prices which are substantially less than the prices at which the same products are sold in a relevant foreign market. The U.S.A. argued before the W.T.O. panel that since 1916 Act imposes damages on the importers rather than resorting to border measures in the form of anti-dumping duties it was essentially an internal measure. By this yardstick we can also start penalising our importers rather than imposing anti-dumping duties. Will it be acceptable to the rich countries? Secondly the U.S.A. has taken the plea that 1916 Act is in fact anti-trust statute. India countered this also: “The Act clearly addresses transnational price discrimination and targets imported goods sold in the U.S.A.”. This blow to the U.S.A. will smoothen the trade of smaller units of Punjab which exports components and parts. Import of parts or components of a final product for assembly is subject to normal duties/tarriffs. The anti-dumping duties do not provide for the anti-circumvention measures. But the U.S.A. continues to apply such measures as extending the anti-dumping duty orders to parts and components. Some states have constituted BIFR like bodies to tackle sickness. Gujarat was the first to set up the Gujarat Board for Industrial and Financial Reconstruction (GBIFR) to assist SSI units to come out of the red. U.P. has also decided to constitute a state SSI Rehabilitation Board on the lines of BIFR. Punjab should have been the first state to have such an institutional arrangement to stem the tide of sickness. Now no further time may be lost in setting up such a board. Punjab’s economy has much higher stake in the health of SSI units. Due to widespread sickness culture of industrial towns of Punjab is getting vitiated. In the mean time the government should ensure that the police does not fish in the troubled waters.
|
|
Property business revives in city CHANDIGARH, Sept 23—For the first time after several years, the real estate business in Chandigarh, Mohali and Panchkula has shown signs of looking up. Although there is not a staggering spurt in the prices, yet, the market watchers say that it has shown signs of improvement and market projections for the future are encouraging. According to official figures, construction in Chandigarh had shown decline of more than 10 per cent in the last five years. However, with increase in activity in and around UT, construction has once again gone up. Mushrooming growth of housing societies is responsible for increase in the supply of houses.Though the property rates continue to be still almost double in UT as compared to the periphery areas, the demand for society houses is less in Chandigarh compared to these areas. Mr. J.D.Gupta, Chairman of Property Consultants Association, Chandigarh and Panchkula, there are chances of further increase in demand for real estate.”The recession was mainly in the local market since the presence of the policy of General Power of Attorney(GPA) according to which the flat or a house purchased is non-transferable .It made availability of finance very difficult for the local buyer and thus led to recession in the market.”He further added that a positive step in this regard was expected from the administration in the near future. Mohali, Panchkula and other periphery areas continue to be the preferred ones. This is mainly attributed to lesser prices in these areas and also comparatively relaxed conditions of the government. “People who cannot afford to buy houses in UT, prefer Mohali and Panchkula due to lower rates. Zirakpur and several other nearby towns are being seen as having bright prospects as far as demand is concerned in the near future”, says Gursharan Batra ,Chandigarh Builders and Promoters. He thinks that besides lower prices, facilities like option to make payment in instalments , easy financing etc. has made these areas are the more preferred ones. Though it is the housing societies which have led to a substantial increase in the supply, however, demand for society houses continues to be less in UT ,and far more in nearby areas. Southern sectors of UT have really seen excessive growth in construction by such societies, says Mr. Brajesh Kumar, another property dealer,”Areas including Sector-38 West, 48, 49 have more than 60 such societies which have come up due to tremendous options expected in the coming future. However, at present demand in these societies continues to be far less that those in areas around Chandigarh”. With expectation of changes in the real estate market scenario, the business of the property dealers is also looking up.”At present , however, there is a high increase in the competition among the property dealers. Business has seen slight improvement in the past few months and it is expected improve further “,says Naresh Sharma of Sangam Property Dealers. He , however, says that at present the overall condition has still not really improved.”We have pinned up our hopes mainly on the demand in nearby areas.Since they are developing, buyer is not only interested in them for use but also for investment purposes, as the prospects of increase in prices in these areas are bright”, he adds. |
|
Analyst’s diary IN case you are wondering why there has been such a spate of IPO’s through the month of September, the obvious reason that comes to mind is improved secondary market conditions and related developments. But hold on for a minute. Could it be that there is a race on to beat the 30th September deadline? Why? Well, thereafter, issuers will have to disclose their half-yearly results and unless they have been upto the mark, it would throw unnecessary light on their projections for FY 2000-01. Surely that should be food for thought ? Finally before signing off, an aside — hasn’t SEBI ever felt the need to appoint a spin doctor to minimise its media-bashing. In a free-pricing regime where the onus lies on the investor to pick and choose good IPOs, one wonders how fair it is to lay the blame for an investors greed or foolishness at SEBI’s door? Irrespective of the authenticity of the murder charge against the promoter of Tips Industries, is it right to blame SEBI, which in fact has highlighted the fact as the prime risk factor? As I understand matters, it is there for all investors to see and if they choose to either invest or avoid doing so on account thereof, well, that’s their choice. Caveat emptor! I recently read on the Net that Zydus Alidac, the marketing division of Zydus Cadila, is launching a web-site called ‘www.penegra.org’ which will provide comprehensive information on sexual health to both, the general public and medical professionals. www.penegra.org will work as a patient information tool providing in-depth information on sexual health and erectile dysfunction. Until recently erectile dysfunction was treated with prolonged behavioural therapy, drugs that required administration into the urethra or corpus cavernosum, vacuum pumps, penile prostheses and other inconvenient methods. Sildenafil Citrate, a miracle drug which provides much-needed respite in the management of these patients, is awaiting permission from the Drug Controller’s office to be marketed in India. In the absence of an official permission to market the drug, the much touted ‘magic pill’, is available in India for costs as high as Rs 600 to Rs 800 per tablet. Zydus Alidac, which plans to market the drug under the brand name ‘Penegra’ , has also included a special segment in the web-site for medical professionals which provides clinical data on the drug including details on its pharmacology, indication and usage of Penegra. Given the volatility at our bourses and the resultant stress it causes, it wouldn’t’ surprise me greatly if this website soon announces that it gets most of its hits from those dabbling in the stockmarket ! Melstar Info Our research has always backed Melstar Information Technologies Ltd (Melstar) which made its IPO earlier this year and elicited a phenomenal response, as a strong dark horse bet. This software services company based in Mumbai, has acquired UK based Linkhand Ltd along with its two subsidiaries—Linkhand Images Ltd and Linkhand Support Ltd — for Rs 32 crore. It has also acquired the UK operations of Zurich based ITC Consulting GmbH for Rs 7 crore. Furthermore, Melstar has also decided to buy out the stake of its joint venture partners in New York based Global System Development Inc. (GSD). It has acquired 55 per cent of holding from ITC Consulting and US based Summit Group. GSD will now function as fully owned subsidiary of Melstar. “The aggregate value of the three acquisitions is Rs 47 crore. Of this, 75 per cent would be through stock swap and the remaining 25 per cent through cash payment.” the Melstar was advised by ANZ Grindlays, London while the due diligence was conducted by Deloitte Haskins and Sells, and that Melstar will now seek regulatory approvals for executing the deals at an extraordinary general meeting which would be held in October. Each share of Linkhand and ITC has been valued at Rs 140 each, while GSD would be issued warrants which would be converted into equity next year. The cash component, however, was to be executed in phases. Melstar had raised around Rs 16 crore through its IPO earlier this year which would go a long way towards meeting the fund requirements although not fully. The company would, however, need to raise additional capital on order to complete these acquisitions. The Chairman said that while it has internal accruals of around Rs 10 crore, it plans to raise an additional amount of Rs 20 crore for which the possibilities of taking the debt or the private placement route were being evaluated. So, what does all this mean for Melstar’s shareholders? A calculated risk obviously, which could provide excellent returns if things fall in place at the right time. Given that the men at the helm are veterans from the segment, Melstar’s shareholders can repose their faith in the management’s abilities to take risks and pull them off successfully. If that happens, Melstar will be catapulted into the big league. |
|
Deposits rise in Ambala region CHANDIGARH, Sept 23 —115th District Consultative Committe Meeting of banks was chaired by Mr Mohinder Kumar, Deputy Commissioner at Ambala today. Mr V.K.Bakhshi, Lead District Manager said that the district credit plan targets for the quarter ending June had been achieved .He said that areas including small scale industry required more attention . Mr H.S.Nanda, Senior Regional Manager, Punjab National Bank said the deposits of the region have increase from Rs 1181 crore to Rs 1445 crore in June 2000 as compared to last year. The priority sector advances are 69 per cent of the total advances against the antional goal of 40 per cent .Advances to the weaker sections have also increased by 10 crore in one year. |
|||||
rc
by Praful R. Desai Retrospective effect? Q: Even if at the time of institution of the suit, clause 13-A for eviction was not available, but it was introduced at the time of appeal, would the tenant be entitled to its protection? Ans: In Dilip v Mohd, Azizul Haq, the S.C. expressed the view thus in this regard: (2000 (1) RCJ. 643): In theory, the S.C. said, the appeal is only a continuation of the hearing of the suit. Accordingly, the word “suit” in the order, has to be understood to include an appeal. The result is that at the time of the institution of the suit for eviction clause 13-A was not in force, but at the time of appeal such a clause is introduced, the tenant in appeal becomes entitled to its protection. This view is fortified by the decisions cited in favour. Therefore, the S.C. expressed the view that the H.C. was not justified in holding that there was no appeal filed or pending against the tenant in this case, although a decree for eviction had been passed in the suit, that decree was under challenge in a proceeding arising out of the suit in appeal and was pending in a court. Thus, an appeal is a re-hearing of the suit and the reference drawn by the H.C. that no proceeding were filed or pending against the tenant as on the date would not be correct. The provision came into force when the appeal was pending. Therefore, though the provision is prospective in force, has ‘retrospective’. This provision merely provides for a limitation to be imposed for the further in no way affect anything done by a party in the past and statutes providing for new remedies for enforcement of an existing right will apply to future as well as past causes of action. The reason being that the statutes do not affect existing rights and in the present case, the insistence is upon obtaining of permission of the Controller to enforce a decree for eviction and it is, therefore, not retrospective in effect at all, since it has only a “retrospective force”. In that way, the S.C. allowed the appeal and remitted the matter to H.C. for fresh consideration in the light of the above views.
|
ty
Melstar
Wipro Videocon Intl |
co
by Pushpa Girimaji Why no compensation for intentional wrongdoing WHO doesn’t know R.R. Gopal, Editor of Tamil bi-weekly Nakkheeran? It’s a different matter that his face is familiar to every television viewer in the country today not so much as an editor, but as the man who is mediating between forest brigand Veerappan and the chief ministers of Karnataka and Tamil Nadu for the release of kidnapped Kannada matinee idol Raj Kumar. Well, this week I am writing about R.R. Gopal, but in a different context though. It’s about his case against the Tamil Nadu State Electricity Board that brought to the fore the inability of consumer courts to protect consumers against misfeasance or malicious abuse of power or deliberate acts of omissions and commissions by service providers. His allegation before the consumer court was that the State Electricity Board had deliberately and intentionally disconnected supply to the printing press where his weekly was being published, so as to stifle its voice. Alleging political motives for such disconnection, he said it was a case of cold blooded victimisation and sought a compensation of Rs 1,64,810 from the electricity board for the loss and suffering caused to him. The State Commission as well as the National Commission adverted to the provisions of secton 14 (1) (d) of the Consumer Protection Act and said under these provisions, compensation can only be awarded to the consumer for any loss or injury suffered on account of the “negligence” of the opposite party. And in this case since the complainant was alleging intentional and malicious wrongdoing, the consumer court did not have the power to award compensation. Said the National Commission in its order delivered in January 1996. “It is the negligence in the performance of deficient service that is the foundation of the grant of the relief of compensation to a consumer for any loss or injury suffered. Negligence is not an affirmative word, on the other hand, it is a negative word. It is the absence of such care, skill, and diligence in rendering the services as is expected of or required of a reasonable man....”. Explained the National Commission further: “Intentional is doing for a purpose with an ultimate aim. The intentional act is the natural consequence of something consciously done. The legislature by using the words ‘deficiency’ and ‘negligence’, clearly intended that the remedy for intentional malicious acts are outside the jurisdiction of consumer forums under the Act. What the legislature intended to be done or not to be done can only be legitimately ascertained from what it has chosen to enact either in express words or by reasonable and necessary implications. In this case, the complainant says that it was not negligence, it was not delinquency of duty, it was cold blooded victimisation motivated by sheer malice, vengeance and oppressive attitude. This type of complaints are not to be considered and decided by the Consumer Forums as the negligence and intention are contradictory terms. In fact negligence is the anti-thesis of intention and so intention is not an element of negligence. The relief which could be granted under Section 14(1)(d) is solely dependent on the establishment of the negligence in the performance of deficiency in service”. Now there are many cases where consumer courts have not given compensation to the consumer on the ground that the consumer has not been able to establish negligence. Similarly, where it was proved that deficiency was caused as a result of circumstances beyond the control of the service provider, consumers have not been awarded compensation. In cases where consumers suffered as a result of deficient service caused by workers going on strike too, the courts have held that no compensation is payable. But here, the allegation was far more serious: it pertained to loss or injury caused as a result of an intentional or a malicious act on the part of the service provider. In this case the allegation was that it was politically motivated. But there are instances where a subscriber’s telephone is deliberately disconnected or rendered non-functional because of his refusal to pay ‘bakshish’ at the time of a festival or ‘speed money’ for repairs. There are cases of inordinate delay in providing power connection only because the consumer refused to bribe the concerned official or employee. There are complaints of arbitrary disconnection of power supply for not meeting the illegal demand of an electricity board employee. Similarly there are case of bank officials deliberately delaying release of loans on the customer’s failure to pay bribe. If one were to go strictly by the decision of the consumer court in the case of R.R. Gopal, then a consumer cannot get compensation under the CP Act for loss or injury suffered in all such cases because here the deficiency in service is a result of a deliberate or an intentional act. This is really unfortunate considering the fact that corruption in the delivery of public utility services is one of the worst forms of exploitation of consumers. |
bb
NetSoft Officers’ meet PACL Godrej website Mr R.K. Nayar, who has been posted as new General Manager (Operations and Accounts) in the Punjab State Co-operative Bank Limited at Chandigarh.
|
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 120 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
