The Tribune, Chandigarh, India

	Economy facing worst crisis, says former Finance Minister Accuses Chidambaram of committing frauds to keep fiscal deficit at 4.6 % of GDP Tribune News Service New Delhi, May 5 The BJP today attacked the UPA for the economy facing “worst crisis” and accused Finance Minister P Chidambaram of committing "frauds" to keep the fiscal deficit at 4.6 per cent of the GDP. Charging Chidambaram with "tax terrorism", former Finance Minister and senior BJP leader Yashwant Sinha said the BJP was committed to a simplified tax regime and if voted to power would try to hasten the implementation of the Direct Tax Code (DTC) and Goods and Services Tax (GST) after consultations with the states. "We are committed to simplifying the tax system — direct and indirect — and therefore, we have always said we will be critically examining the DTC and the GST Constitutional Amendments Bill by getting a consensus among the states and try and hasten the process of the DTC. "We are confident that these two major tax reforms, if they are carried out by us, will lead to better tax compliance and our receipts will go up," Sinha said, adding a simplified tax regime would lead to higher collection of taxes rather than reduced receipts. Sinha said the UPA was leaving an economy which is in "a worse crisis than even the crises in 1991 and 1998". He said it would be a major challenge for the new government to deal with it when it assumes office. Sinha said Chidambaram had not projected the right picture in maintaining the fiscal deficit at 4.6 per cent and accused him of resorting to "tax terrorism". Hitting back at Chidambaram who had termed him as the "worst" Finance Minister ever, Sinha said, "Chidambaram will have to be reborn again to match his record in the Finance Ministry." Enumerating "loopholes" in Chidambaram's projection, he said the expenditure had been savagely cut and the FM indulged in "mindless reduction of expenditure and forced tax payers to part with taxes much more than the demand." He raised the issue of black money stashed abroad, questioning why the Congress-led UPA was not releasing the names of those who have stashed black money abroad. RBI Guv must be respected by new govt: Chidambaram Astana/New Delhi: The new government should respect the appointment of Reserve Bank Governor Raghuram Rajan who was selected to head the central bank on the basis of his reputation, Finance Minister P Chidambaram has said. “The central bank governor was appointed based on his reputation... Every government must respect this appointment," he said. — PTI
	Ultra-luxury on wheels, Punjabis’ latest fad State accounts for almost 40% of Mercedes sales in India Ruchika M. Khanna Tribune News Service Chandigarh, May 5 Punjab has always been one of the best markets for luxury cars, but now it is inching its way to be the biggest market in the ultra-luxury cars segment. Here, owners are getting their ultra-luxury cars customised to suit their individual tastes. From getting customised seats and steering wheels of various colours, stylist locks and handles, to espresso machines and massage chairs, they are willing to pay a price to get them all. Talking to The Tribune, Eberhard Kern, managing director and chief operating officer, Mercedes Benz, India, said Punjab accounted for almost 40 % of its total sales in India. "Of the total sale of 9003 cars in India in 2013, 7% of the cars were sold in Punjab. As many as 650 Mercedes cars were sold in Punjab, Chandigarh and Karnal last year, with the maximum units being sold in Chandigarh. In 2013, the company recorded a sales growth of 32% across India, but the Punjab market beat the national growth and recorded a growth of over 40%. But now, we see a growing demand for Mercedes AMG in this market. Thus, we have decided to open an exclusive dealership for the coveted brand in Mohali," he said, after inaugurating the Punjab Motors Mercedes dealership. He said enthused by the sale of these ultra-luxury vehicles — C63 and E63 (sedans), G63 SUV, GL 63 (both SUVS) and SLK55 (sports car) and growing interest in car customisation, the company had set up a Centre of Excellence at its plant in Pune, where customers could customise their cars to their liking. “For the convenience of customers, we also fly them to the centre or they can hire a chopper and visit us there," he said. Since the ultra-luxury segment has done well in India, the company is launching its sixth AMG model— ML 63 (SUV) — on May 15. It is also setting up two AMG performance stores- in Delhi and Bangalore. The AMG brand accounted for 200 cars in 2012-14 and this year, the company is looking to double this number. Kern said, "Despite being a niche category, the AMG brand will form a key part of the company's strategy. The AMGs usually cost double to their regular-engine versions and their engines are hand-built, using a "one man, one engine" philosophy at the company's AMG plant in Affalterbach, Germany. He said the company was Rs 850 crore for doubling its production capacity at its Pune plant from from 10,000 units to 20,000 units this year.
	Supertech case SC stops demolition of two 40-floor towers Legal Correspondent New Delhi, May 5 The Supreme Court today ordered status quo on Noida's two high rise 40-floor residential towers. Earlier, the Allahabad High Court had ordered the demolition of towers due to insufficient distance between them in violation of fire safety norms. A Bench headed by Chief Justice RM Lodha wanted to know as to how the authorities allowed the construction in the first place and made it clear that they would be made to face the consequences, if the towers were to be brought down ultimately. The Bench also directed real estate major Supertech Ltd, which was constructing the towers comprising 857 apartments, to maintain status quo on the ownership of the flats. About 600 flats have already been sold out. The HC had passed the order on April 11 on a petition filed by some of the initial members complaining that Supertech had increased the number of floors to 40 in the two towers (Apex and Ceyane) against the originally sanctioned 9-11 floors. The HC had also directed the company to refund the members who had invested in the project, known as Emerald Court. In its appeal, Supertech said the towers were being constructed as per approved building plans and that there was no violation. The SC issued notice to the Noida authority seeking its response to the pleas of the company as well the resident welfare association.
	GE offers to pay $389 m for Alstom’s India units New Delhi, May 5 General Electric (GE) today announced an open offer to buy shares worth up to $389 million in two Indian units of French engineering major Alstom. According to a stock exchange filing, GE has sought to buy a 25% stake in Alstom T&D India from shareholders at Rs 261 a share, in a deal worth $278 million. A separate filing said GE was also seeking to buy 26% of Alstom India at Rs 382 a share for a deal of up to $111 million. GE would proceed with the offers only if its bid for Alstom’s energy arm goes through, the filings said. “On behalf of GE Energy Europe BV, in their capacity as persons acting in concert with the Acquirer, Credit Suisse Securities (India) Private Limited, has issued a public announcement in connection with the open offer to the shareholders of Alstom India Limited,” an Alstom India announcement said. — TNS
	Faulty brakes: Honda recalls 31,226 Amaze, Brio New Delhi, May 5 Honda Cars India Ltd (HCIL) today recalled 31,226 units of select variants of the Amaze compact sedan and Brio hatchback to inspect them for a possible defect in the brake system. The company will inspect the proportioning valve of non-ABS variants of both models manufactured between February 28, 2013, and January 16, 2014. The recall is for 15,623 Brio cars and 15,603 petrol Amaze cars, HCIL said. The proportioning valve is part of the system that adjusts brake distribution pressure to the wheels. The inspection and replacement, if needed, would be carried out free of cost at HCIL dealerships across India and owners will be contacted individually in a phased manner. “There is a possibility that in some of these cars there is mis-assembly of the proportioning valve. However, no complaint related to this part has been reported. HCIL will voluntarily replace the valve after inspection, if required,” HCIL said. — PTI
	Biz talk ItzCash Card: A way out of hard cash risks Naveen Surya, managing director, ItzCash Card talks to Sanjeev Sharma ItzCash Card, India's first and the largest prepaid cards' company, is evolving as a payment solutions player. Launched in 2005, under the aegis of Essel Group, ItzCash Card is the first and largest non-bank entity to offer prepaid cash cards to the unbanked and under-banked segments in the country, thereby offering them convenient, secured and customised payment solutions. In an interview, Naveen Surya, managing director, ItzCash Card, shares his views on the current scenario of the pre-paid card industry and its future. Q: How has been the transition from a pre-paid card company to a payment solutions company in the past six years? A: Prepaid cards have found acceptance as a preferred payment option among millions of under-banked and unbankable segments in tier 1 and 2 towns and cities. Today, India has about 17 million prepaid cards in circulation. The total transactions, as per the RBI annual report, through prepaid cards were worth Rs 79 billio. Despite being 1.3 times of the total mobile banking transactions, it still is a miniscule in comparison to debit and credit card transactions. We have not only added various cards to our portfolio, but also ventured into streamlined and convenient methods of electronic payment. We have more than 50,000 ItzCash outlets across 3,000 plus tier I and II cities of the world and issued over 10 million semi-closed loop prepaid cards. ItzCash enables its 8 million users to perform a variety of transactions through a bouquet of prepaid products in partnership with various banks and payment networks. Q: What challenges the rising banking penetration into the tier II and III towns pose to the company? A: Despite being aggressive on improving the penetration, banks have also partnered with companies like us to introduce co-branded prepaid cards. Prepaid cards across India are traditionally used by a large segment of population which chooses to be under-banked or is not having any banking relationship. This segment has continued to grow in India. With the usage pattern of these cards mainly limited to budgeting, making payments for day-to-day expenses and convenience of not carrying bulk cash, still the market for payment solutions, including prepaid cards, has increased in the past four years. Q: How is the RBI's thrust on a less-cash economy panning out? A: The overall RBI regulatory policy stance is towards promoting a less-cash or less-paper society-— the “green” initiative — and hence, it has increased emphasis on the use of electronic payment products and services that can be accessed anywhere and anytime by all at affordable prices. The prospect of electronic money taking over from physical cash for most small-value payments continues to suggest considerable interest among the public and various authorities. Q: Do you think ItzCash's growth can be sustained in the future? A: We have already partnered with 10,000 merchants that include energy boards, travel and tourism, telecom, DTH providers, retail, and government agencies to facilitate easy payments through ItzCash. We are focusing on to increase non-cash payments and make it readily available. They should not impose any excessive financial burden on the merchant and user and should offer an appropriate level of security to customers.