Half-a-dozen landlords in the national capital have sent legal notices to Sequoia-funded Cars24, an online platform for buying and selling used cars, alleging non-payment of rent and shutting of stores in violation of lease agreements. Cars24 has shut down about a dozen outlets in New Delhi. The three-year-old startup is said to have raised $100 million from investors.
Digital transaction volumes in India swelled to 3,133.58 crore in 2018-19, registering a growth of 51% over the previous year. The transaction volumes in the first month of the current financial year (till April 30, 2019) alone stood at about 313 crore, Minister for Electronics and IT Ravi Shankar Prasad said. The volume of digital payment transactions done on the BHIM app has increased from 31.9 lakh in April 2017 to 154.9 lakh in June, 2019. BHIM is a UPI-based mobile payment app developed by the National Payments Corporation of India.
E-commerce platform ShopClues has laid off about 200 employees as it struggles to control costs in the hyper-competitive online shopping segment in India. According to sources, ShopClues has sacked about 200 people as its efforts to find a buyer failed. Recently, ShopClues was in talks with larger rival Snapdeal for a potential acquisition. ShopClues has been steadily reducing its workforce mostly in operating functions. ShopClues posted losses of Rs 208 crore for the year ended March 2018.
The total GST collection of the states/UTs for 2018-19 stood at Rs 5,18,447 crore, up from Rs 2.91 lakh crore collected in nine months of 2017-18, Finance Minister Nirmala Sitharaman said. Besides, the central government has released Rs 81,177 crores compensation to states during 2018-19, as against Rs 48,178 crore during July-March period of 2017-18 fiscal. GST was rolled out from July 1, 2017.
The market valuation of mortgage lender Housing Development Finance Corporation (HDFC) has crossed the Rs 4-lakh crore mark. At the close of trade on Thursday, the market capitalisation of HDFC was at Rs 4,04,384.68 crore on the BSE. HDFC is currently the fourth most-valued firm by market valuation on the BSE. RIL, with an m-cap of Rs 7,99,864.73 crore, is the country's most-valued firm, followed by TCS with Rs 7,75,092.58 crore and HDFC Bank Rs 6,56,940.74 crore.
The SEBI has told the government that recent budget proposals could undermine its role as regulator, particularly with respect to the recommendation that the minimum public shareholding be raised to 35% from 25%. Already, government-owned companies are laggards in raising this level to the current 25% norm. As many as 31 PSUs including PNB, Bank of India and Corporation Bank have still not complied with the 25% minimum public shareholding norm. Ensuring compliance would be greatly impacted particularly from PSUs as SEBI has to depend on government for funding that could lead to a conflict of interest.
Vodafone Idea Ltd. has hired Bank of America Corp. and Morgan Stanley to help sell its fiber assets as India’s largest mobile carrier by users seeks to raise funds to pare debt. The bankers will initiate discussions with potential buyers for the fiber assets, which could be valued at as much as Rs 13,000 crores ($1.9 billion). Vodafone Idea, which was formed by the merger of Vodafone Group Plc’s Indian unit with Kumar Mangalam Birla’s Idea Cellular Ltd., has reported losses in every quarter since the deal was announced in 2017.
Netflix Inc. said it will roll out a cheaper mobile-only subscription plan in India by September as it looks to attract users in a country which has the world’s second-largest internet user base. According to a report by Ericsson, India has the world’s highest data usage per smartphone. Netflix currently is the most-expensive video streaming service in India, with monthly subscription plans starting at Rs 500. That compares with Hotstar’s premium plan that starts at Rs 299 and Amazon Prime that costs Rs 129 a month.
The NCLT has given a go-ahead to the government to prosecute Deloitte and BSR Associates for their failure to detect and report the scams that took place across the IL&FS Group and 21 other entities, when they were the auditors of IL&FS Financial Services. The NCLT in an order said the corporate affairs ministry can go ahead with prosecution based on the findings of the probe conducted by the Serious Fraud Investigation Office. The tribunal also allowed to the government plea to prosecute Udayan Sen, a partners of Deloitte, and BSR Associates partners Kalpesh Mehta and Sampath Ganesh.
The ICC on Thursday suspended Zimbabwe Cricket with immediate effect due to violation of the global body's constitution which doesn't allow any government intervention in cricket administration. The current elected members of Zimbabwe cricket board were suspended by government agency Sports and Recreation Committee (SRC) which was violation of articles 2.4 (c) and d of ICC’s constitution. The ICC has directed that the elected Zimbabwe Cricket Board be reinstated to office within three months, and progress in this respect will be considered again at the October Board meeting.
The civil aviation ministry is likely to form a working committee to find new ways to reallocate Jet Airways’ overseas flying rights in the wake of IndiGo and GoAir complaining about the procedure followed last time. The ministry had last month allocated Jet Airways’ bilateral flying rights to other Indian airlines for three months ending September. IndiGo and Spice-Jet had got the maximum number of rights at 84 and 77 weekly flights, respectively.
After a spate of resignations by statutory auditors, SEBI is looking to strengthen disclosures to bring more transparency and to strengthen audit committee processes. The market regulator has proposed changes to the Listing Obligations and Disclosure Requirements (LODR), 2009 that will require an auditor to complete and sign the audit report before resigning, and give details of information not provided by a company. In many recent instances, statutory auditors have resigned from listed entities citing lack of disclosure. The current proposal aims to make it mandatory for a resigning auditor to specify details of information not provided by the company.
India’s NBFC lenders, many of whom have struggled to raise funds from the markets in recent months, have pulled back on loan growth amid tighter liquidity conditions. Fresh sanctions across categories like auto, unsecured business loans and property loans fell in the January-March 2019 period. There was, however, a notable exemption. Disbursements of gold loans doubled over the year-ago period, even as total disbursements contracted by a third.
The government has invited proposals from entities for the deployment of electric vehicle charging infrastructure in big and smart cities. Proposals are invited from entities that intend to develop EV charging infrastructure in million-plus cities as per the 2011 census; and smart cities as notified by the Ministry of Housing and Urban Affairs, the Ministry of Heavy Industries said. Initially, 1,000 EV charging stations are earmarked for deployment through this EOI.
China’s largest car maker Shanghai Automotive’s Indian subsidiary MG Motor has got off to a very good start in India. It has received over 20,000 bookings for the Hector SUV in 45 days since opening bookings. With the production for the current year already sold out, M G Motor has been compelled to close the bookings temporarily. The company plans to increase production of the Hector at its Halol manufacturing facility to 3,000 units per month by October this year.