Arguing that recoveries made from the sale of properties belonging to diamantaire Nirav Modi will be ‘a necessary boost to the economic health of the country in the long run’, the Punjab National Bank (PNB) sought permission from a special court to release the properties to them. Modi, who is behind bars in the UK and faces extradition proceedings, was declared a fugitive economic offender last month. The special court is expected to hear arguments on confiscation of his properties, including his residence in Worli, multiple office premises in South Mumbai, jewellery, cars and paintings. Modi is named as accused by both the Enforcement Directorate and CBI for alleged fraud of PNB. The application by PNB added that the consortium of banks had in good faith and in a bonafide manner accepted various movable and immovable properties from Firestar International Limited, controlled by Modi.
Auto sales crash to historic lows in 2019
The year 2019 ended as the worst year that the Indian automobile industry has ever seen with sales crashing the most since 1997, the year since when the industry started tabulating data. Economic slump, joblessness, tight financing position and uncertainty due to national elections and impending BS4 emission switch saw the sales of cars, two-wheelers and commercial vehicles report their worst performance ever with industry body Siam projecting that tough times would continue for some more time. Domestic industry sales declined by 14% in the year, the biggest fall that Siam has recorded. The only time that cumulative auto sales fell in India was in the years 2007 and 2008 where numbers were down by a marginal 1%. Apart from those blips, the numbers have grown in India - a market which was once seen as the ‘next China’ in terms of sales potential due to low penetration of vehicles.
Govt taking various steps to simplify taxation: FM
India's finance minister Nirmala Sitharaman said the government is taking various steps to simplify taxation system and eliminate harassment of honest taxpayers. Addressing an event organised by Confederation of All India Traders (CAIT), the finance minister said the government is open to suggestions for the betterment of GST filing system. Based on suggestions received from various stakeholders, the government is taking steps towards simplification of taxation system, she added. In a bid to curb harassment of taxpayers, she said, a faceless e-assessment scheme was launched in October to eliminate interface between an assessing officer and a taxpayer.
India’s growth may slip to 5%: World Bank
India’s growth rate is projected to decelerate to 5% in 2019-20 amid enduring financial sector issues, according to a World Bank report, which said the country’s GDP was likely to recover to 5.8% in the following financial year. India’s GDP growth is seen dipping to an 11-year low of 5% in the current fiscal, mainly due to poor showing by manufacturing and construction sectors, government data showed. “In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5% in fiscal year 2019/20, which ends March 31 and recover to 5.8% the following fiscal year,” the Bank said in its latest edition of the Global Economic Prospects. It said tighter credit conditions in the non-banking sector are contributing to a substantial weakening of the domestic demand in India.
Merc plans e-car debut in India
Mercedes Benz has decided to launch the company’s first full-electric car in India, and the charge will be led by the EQC mid-size SUV, the first of the multi-model green car line-up (EQ range) that the German luxury carmaker plans to introduce globally over the next few years. The company will initially import the EQC to India, but has also started to explore plans of assembling electrics at its factory in Pune as sales of the first green car begin and others get planned, Martin Schwenk, MD & CEO of Mercedes in India, said. The EQC, which so far has been launched in countries such as Japan, US, Germany, Korea, and China, will be unveiled in India later this month, before being finally launched around April. At the global level, Mercedes plans to design and manufacture ten electrics under the EQ badging by 2022.
