News

3rd oct – 10th Oct

Delhi HC rejects RIL plea to quash CBI case against it

The Delhi High Court has cleared the decks for trial against Reliance Industries relating to seizure of classified documents from its office in 1998 by rejecting its plea that the case was time-barred.

The company is facing criminal case under the Official Secrets Act for the alleged recovery of some secret documents during search of the office premise of V Balasubramanian, the then Group President of Reliance Industries, in 1998.

A criminal case was filed but considering the sensitivity of the case, investigation was handed over to the CBI which registered a complaint in 2002.

The company had contended that the CBI failed to register the complaint within the time frame of three years and as such it should not have been proceeded.

However, the High Court refused to accept the contention that 142 days' delay in registering the complaint could be a ground to quash the proceedings before the trial court.

Justice S N Dhingra accepted the CBI's plea that the delay in registering the complaint had occurred as it was seeking the opinion of the Attorney General and Solicitor General, whether the company can be made party to the case.

Global economic recovery is fragile: Pranab

• Finance minister Pranab Mukherjee on Sunday said the global economic recovery is fragile and cautioned that emerging economies may not be as resilient in the face of another crisis.

"Countries are recovering at different rates. Growth is well below potential. And the recovery is fragile. There is a constant danger of recovery being derailed by unexpected shocks," he said in his address to the International Monetary Fund and World Bank Group Development Committee Meeting.

He further cautioned that the world economy is passing through a lot of uncertainty. The financial and economic crisis is yet to run its full course and economies have yet to fully recover from its after-effects, he added.

Through coordinated action, we were able to avert a prolonged recession ...The prospects are, however, full of uncertainties. Recovery continues across the world, but it is uneven," he said.

He appreciated the remarkable resilience shown by developing countries in dealing with the crisis. "However, they have exhausted their policy buffers built up over the years and would not be able to show the same resilience in the face of another shock," he said.

While developed world has been witnessing fragile economic recovery after hit hard by the financial meltdown, started by the sub-prime crisis, Asia is expected to drive the global growth.

Nirma to quit bourses, buy back shares

• In a surprise move, Ahmedabad-based FMCG major Nirma Ltd, which at one time brought some of the top detergent players of the country to their knees, is all set to de-list from the bourses.

The Rs 4,620-core Nirma, pretty much a household name at one time largely because of its popular ad jingle, has lost most of its aggressiveness since then and has also diversified into non-related businesses such as pharma, cement and processed minerals. The company, through a release issued on Saturday evening, said that the reason behind the move was to attain "flexibility to carry out its operations" and facilitate its foray into new capital intensive businesses.

It may be pointed out that Nirma, over a period, has got into some capital intensive businesses like cement and there is a feeling in the company that existing shareholders may be averse to the changed risk profile of the new businesses.

The promoters of the company are expected to come up with an open offer to acquire the balance 3.63 crore equity shares of the company from the public at Rs 235 per share. At this rate, Nirma's promoters will have to shell out Rs 853.66 crore to buy them out.

BSNL achieves tangible growth in islands

• BSNL has achieved substantial growth in telecom services in the Andaman and Nicober Islands with its customer base having touched the 1,82,003 figure base.

Chief General Manager BSNL V K Sanjeev told media the overall tele-density in the islands, including private operations, is 62 per cent, having crossed the all India figure of 58 per cent, of which BSNL alone shares 36 per cent.

Sanjeevi said broadband facility is now available in all the exchanges of south, middle and north Andaman through optic fibre connectivity with Port Blair while other islands will be connected progressively.

He said public telephones are operational in 341 villages while a call centre was working to help customers.

Air India to demand another Rs 2,000 crore to repay debts

• As the process to infuse Rs 1,200 crore as additional equity in Air India takes shape, the national carrier might ask for another Rs 2,000 crore from the government in the next financial year to repay its massive debt, official sources said today.

The airline would require Rs 3,000-Rs 4,000 crore annually to pay off its debt, which is primarily on account of aircraft induction, according to an official estimation.

Foreign retail investors may get nod to buy stocks directly

• India may allow individual investors based overseas to directly buy stocks for the first time, easing a rule that restricts investment in mutual funds, a finance ministry official with direct knowledge of the matter said.

Some government officials see no need to differentiate between India-focused mutual funds and foreign retail investors, the official said. The finance ministry may set a limit on the amount individuals can invest , the official said