SC holds Anil Ambani guilty of contempt. RBI to transfer INR28,000cr as interim dividend to govt. CBI issues look-out circular against Chanda Kochhar, Deepak Kochhar and Venugopal Dhoot. Sachin Bansal invests INR650cr in Ola.
Moving on to the top Business stories of the week.
SC holds Anil Ambani guilty of contempt. RCom requests urgent approval of INR260cr from lenders.
Guilty as Charged: The Supreme Court has held Reliance Communications Chairman Anil Ambani and two of its Directors guilty of contempt of court on three contempt applications filed by Swedish telecom giant Ericsson, for not clearing dues of INR550cr.
SC has asked RCom and Ambani to pay Ericsson INR453cr, in addition to the INR118cr already deposited with the court. The court has also imposed a fine of INR1cr each, on the three.
Final Warning: SC has asked Ambani to pay the specified amount to Ericsson within four weeks, failing which he will have to serve three months of jail term.
In Dire Need: Reliance Communications Chairman Anil Ambani has sought an urgent approval of INR260cr of income tax refund directly from its lenders, to be directed to Swedish telecom equipment maker Ericsson.
RBI to transfer INR28,000cr as interim dividend to govt. Central Bank to inject INR12,000cr into the system via Open Market Operations. Govt to inject INR48,239cr in 12 PSBs.
The What: The Central Board of RBI on Monday announced transfer of INR28,000cr as interim dividend to the government. The total surplus transfer to the government for FY2018-19 now stands at INR68,000cr.
The transfer is likely to help the government meet its revised fiscal deficit target of 3.4% of GDP for 2018-19.
Let it Flow: RBI is set to inject INR12,500cr into the system through the purchase of government securities in a bid to increase liquidity. The purchase will be made through open market operations.
Incoming Funds: The government on Wednesday announced an injection of INR48,239cr in 12 PSBs including Allahabad Bank, Corporation Bank, PNB and UBI in a bid to help them meet their capital requirements and accelerate lending.
The plan will help the government meet the INR1.06tr revised target of bank recapitalisation this fiscal.
What’s The Plan: Corporation Bank will get the highest capital infusion of INR9,086cr, followed by Allahabad Bank, which will get INR6,896cr. Among the other lenders, Punjab National Bank will get INR5,908cr, Union Bank of India INR4,112cr, Andhra Bank INR3,256cr and Syndicate Bank INR1,603cr.
Sony, Apple, Comcast compete for stake in Zee Entertainment. Sachin Bansal invests INR650cr in Ola. Swiggy to acquire Indian arm of Uber's food delivery service.
Up For Sale: The management of Zee Entertainment Enterprises has shortlisted US cable service provider Comcast, Japanese MNC Sony, tech giant Apple and homegrown Reliance Industries as it deliberates a stake sale.
Backstory: Zee had in November announced its promoters’ plans to sell up to 50% of the stake to a strategic partner in order to deleverage their balance sheet.
Helping Hand: Flipkart Co-founder Sachin Bansal has invested c. INR650cr in Ola- the largest financing by an individual in the ride-hailing firm till date.
The investment is part of Ola's plans to raise about $1bn in funding, valuing the company at c. $5.8bn.
More on Their Plate: As per an Economic Times report, Swiggy, is in talks with Uber to buy the Indian arm of its food order and delivery platform, Uber Eats.
The deal could be seen as an attempt by Uber to cut down its losses from its India business as it prepares for a public offering at a possible valuation of $120bn-$150bn later this year.
Face Off: Reports suggest that the deal may involve a share swap, which will grant Uber about 10% stake in Swiggy, currently valued at $3.3bn.
CBI issues look-out circular against Chanda Kochhar, Deepak Kochhar and Venugopal Dhoot. ED registers money-laundering case against former IL&FS top executives. Commodities arm of Motilal Oswal and India Infoline not 'fit and proper’, reports SEBI.
Look-out: The CBI has issued a look-out circular against ex- ICICI CEO Chanda Kochhar, her husband and NuPower Renewables founder Deepak Kochhar and Videocon Group Managing Director Venugopal Dhoot in light of the ongoing ICICI-Videocon loan fraud case.
Hit Refresh: The development comes after the CBI had last month registered a criminal case against the three.
Knock Knock: The ED on Wednesday raided six IL&FS offices across Delhi-NCR and Mumbai in connection with a money laundering case registered by the probe agency against it.
What You Need to Know: The agency initiated the money laundering probe on basis of an FIR lodged by the Economic Offences Wing of the Delhi Police in December last year against Ravi Parthasarathy, the then company director Hari Sankaran, IL&FS Rail, IL&FS Transportation Networks and others.
'Fit and Proper’: SEBI in an order on Friday declared that the commodity broking arms of Motilal Oswal and India Infoline (IIFL) are not ‘fit and proper’ to undertake commodities derivative trading.
Zoom Out: The announcement was made as part of an ongoing investigation into the NSEL case, wherein the market regulator is probing a INR5,600cr payment default which broke out at the spot commodity trading platform NSEL in 2013 in which broking firms like Motilal Oswal Commodities Broker are alleged to have involved in misselling of NSEL contracts without having underlying commodities in the warehouses.
Some of the other leading brokers who are being probed in the NSEL case are Anand Rathi Commodities, Philip Commodities and Geofin Commodities.
Apple shuffles top leadership as it seeks to diversify revenue streams. Honda shuts down major UK production plant.
Looking for More: Apple is shaking up its top leadership and reordering its priorities as it looks to diversify its revenue streams to reduce dependence on iPhone sales.
Major reordering includes promoting AI Chief John Giannandrea to the executive team, replacing departing Retail Chief Angela Ahrendts with Head of HR Deirdre O’Brien and pushing out top Siri voice-assistant executive Bill Stasior. The tech giant has also trimmed 200 people from its autonomous-vehicle project, and is redirecting much of the engineering resources in its services business, led by Eddy Cue, into efforts around Hollywood programming.
Click here know how the company plans its transition from an iPhone-driven company to one where growth flows from services and potentially transformative technologies.
Shutting Down: Japanese automaker Honda to shut down its largest plant in the UK on back of approaching Brexit deadline. The plant currently employs 3,500 people, besides the thousands in the factory’s supply chain.
Honda produced some 160,000 cars last year at the Swindon plant, where the company has been producing cars since 1992. Its Civic is the U.K.’s third-most-exported car, many of which are sold in the US.
With the Brexit deadline approaching, contingency planning by businesses is kicking into higher gear.
(Don't want to miss out on these End Of Week Wrap Ups? Subscribe Now to our No Nonsense Email Digest and get the day's Top 6 Business stories straight to your mailbox.)