Stoking in a fresh bout of controversy, former Reserve Bank of India (RBI) governor, Raghuram Rajan has raised doubts about the country's economy clocking seven per cent at a time when not enough jobs are being created, and called for an impartial body to look into the numbers to restore confidence. He said, "I know one minister has said how can we be growing at seven per cent and not have job. Well, one possibility is that we are not growing at seven per cent." He is assumed to have referred to Finance Minister Arun Jaitley, who recently claimed that an economy cannot grow at over seven per cent. Meanwhile, Rajan said India needs to collect jobs data in a better way. He also noted that jobs should be the primary election agenda and a "task one" for the government to deliver as the country prepares to hold the elections next month. When asked what should be the key focus as we approach elections, Rajan said, "Start creating jobs that people want. Take care of the distress, but whatever measures you put, put them as a pathway for people to get those jobs rather than standing in the way of getting those jobs... We can talk about the economic reforms that are needed, but jobs are task one."
Tatas foray into airports, buy stake in GMR
After airlines, the Tata Group is making a foray into airports. The conglomerate will invest £355.5 million for a 20% stake in GMR Airports, which runs the Delhi International Airport. The proposed stake-purchase has been routed through Tata Sons, which also owns majority stakes in two carriers-AirAsia India and Vistara. Tatas’ interest in the aviation business also includes charter services through Taj Air. The Tatas follow billionaire Gautam Adani’s bet on the sector after his company won bids to operate six airports in the country last month. In the past, the Tatas had made attempts to enter this space and tied up with Singapore’s Changi and Heathrow airport operators to participate in the privatisation of airports in the country. However, the bids did not materialise due to multiple factors like rules that prohibit a company with interest in an airline from owning more than 26% stake in certain greenfield airports.
FIR against Singh bros on cheating, conspiracy
Delhi police’s economic offences wing has registered an FIR against promoters of the Religare Enterprise after they were found to have defaulted in repaying a loan of £239.7 million. Police officers said during the probe, it was found that there were inter-linkages between borrowers as funds were routed from one borrower to another. It was also found that the loan amount ultimately came back to the same group companies after being borrowed. An FIR under sections of cheating, criminal breach of trust and criminal conspiracy was registered against Malvinder Mohan Singh, Shivinder Mohan Singh, Sunil Godhwani and N K Ghosal from the Religare Enterprises (REL) on the basis of a complaint from a senior manager of the Religare Finvest (RFL). REL was controlled by the Singh brothers until February 2018. After their exit from board of REL in February 2018, boards of REL and RFL have been re-constituted. The complaint mentioned that the loans taken by the companies owned by the four men had left RFL in a poor financial condition.
Infosys arm to buy 75% stake in Dutch bank subsidiary
Global software major Infosys said its consulting arm would buy 75 per cent equity stake in Starter NV, a subsidiary of the Dutch-based ABN AMRO Bank for £99.9 million in cash for strategic partnership in The Netherlands. "Our subsidiary Infosys Consulting Pte Ltd will acquire 75 per cent of the shareholding in Stater NV, a subsidiary of ABN AMRO Bank NV, for Euro 127.5 million," said the city-based IT firm in a statement. The Amsterdam headquartered third largest Dutch bank ABN will hold the remaining 25 per cent of the shareholding in Stater.
As a market leader in the Benelux region, Stater operates in the mortgage and consumer value chain