The Delhi high court last week asked SBI to maintain status quo with regard to accounts of Anil Ambani’s firms - Reliance Communication (RCom), Reliance Telecom and Reliance Infratel - which the bank has declared as fraud accounts. Justice Prateek Jalan, however, allowed SBI and the RBI to take steps in the nature of an investigation or filing of complaints against the erstwhile directors and the three companies independent of the action of declaring the accounts as fraud. The HC acted on a plea by former directors of the three companies challenging a 2016 circular of the RBI on declaring accounts as fraud by banks. According to the plea, the circular allows banks to declare an account as fraud without giving any prior notice or communication to the account holder against the principles of natural justice.
Spectrum auctions from March 1
The government will look to bridge the yawning fiscal deficit through sale of spectrum that begins from March1. The sale of airwaves, a total of 2,251MHz, is being seen as crucial for the exchequer even though struggling telecom companies such as Airtel and Vodafone Idea may not be enthusiastic in their purchase. The spectrum sale can fetch the government over £39 billion at just the reserve price. The government last week came out with the notice inviting applications (NIAs) for the auctions. However, the government has skipped the sale of the much-coveted 5G airwaves in this round, auctions for which could though be announced soon.
Bose, pioneer of investment banking dead
Veteran dealmaker Udayan Bose, who brought modern investment banking and venture capital to India in the ’80s and set up the second private Indian mutual fund, passed away last week. Bose (71) was suffering from heart and kidney related issues. Bose straddled the world of pinstriped bankers of London’s Lombard Street and the stock markets of Mumbai and Kolkata. He threw away an opportunity to head Deutsche Bank’s Australia operations to turn an entrepreneur by acquiring a vintage broking firm, which then he used to partner Lazard (a global investment bank) and create India’s first multinational investment bank. A young achiever from Kolkata’s Presidency College, Bose started his career with Grindlays Bank where he rose to be a director of Asia-Pacific before moving on to European Asian Bank (which became Deutsche Bank).
