FDI in defence sector

FDI in defence sector has been allowed upto 49% of the equity of the investee, up from 26% as at present. Government of India vide Department of Industrial Policy & Promotion has issued Press Note no. 7/2014 dated 26th August, 2014 to this effect. This 49% is approval route from the Government.


Further this FDI limit of 49% will include all kinds of foreign investment i.e. FDI, FII, FPI, NRI, FVCI & QFIs.

Portfolio investment upto 24% is however allowed on automatic route.

The Government will consider FDI above 49% on a case by case basis.

There are other conditions such as

(a) the sector is subject to license and therefore licensing will be done by DIPP in liaison with Ministry of Defence;
(b) Applicant should be an Indian company owned and controlled by resident Indian citizens;
(c) Management of the company should be in Indian hands including the Managing Director/ CEO should be Indians;
(d) Chief Security Officer should be an Indian citizen;
(e) Full particulars of Directors/ CEO should be furnished alongwith the application;
(f) Preference will be given to OEMs or design establishments and companies having good track record in the past with the Armed Forces;
(g) There is no minimum capitalization requirement for the FDI;
(h) No purchase guarantee will be given by the Ministry of Defence;
(i) The company should also have maintenance and life cycle support facility for the product being manufactured in India along with the manufacturing facility;
(j) Import of equipment for pre-production activity including prototype will be permitted;
(k) Adequate safety and security procedures need to be put in place by the licensee;
(l) Standards and testing procedures for the equipment will have to be provided to the Government under appropriate confidentiality clause. The nominated quality assurance agency will do the inspection and audit of the Quality assurance procedures of the licensee. Self certification would be allowed on a case to case basis;
(m) Purchase preference and price preference might be given to the public sector enterprises in the sector;
(n) Arms and ammunition manufactured under license will be sold only to the Ministry of Defence or units under the ministry of home affairs. It cannot be sold in the private market. Export would be permitted subject to the guidelines.
(o) Non lethal weapons would be permitted to sold to persons other the MOD or MOHA subject to obtaining necessary permissions;
(p) The company would need to set up a verifiable system of removal of items from out of their factory. Violation of these provisions may lead to cancellation of the licence.
(q) All application to be made to the Foreign Investment Promotion Board (FIPB). Proposals upto 49% involving investment in excess of Rs.1200 crores (Rs.12,000 million) will be sent to the Cabinet Committee on Economic Affairs (CCEA) for clearance.
(r) For proposals beyond 49% approval will be sought from the Cabinet Committee on Security (CCS). Proposals beyond 49% and involving investment exceeding above limits will not require CCEA clearance if it has been cleared by the CCS.
(s) Government decision on the FDI will be communicated normally within a period of 10 weeks from the date of acknowledgement of the application.
(t) For proposals beyond 49% the application should be made by Indian company or foreign investor but the management need not be in Indian hands and it is not necessary to have Managing Director or CEO as Indian.

A copy of the press release can be found here



 

FDI in Railway sector

The Government of India has opened up railway infrastructure for domestic as well as foreign investors. Department of Industrial Policy & Promotion (DIPP) press note no. 8 dated 27th August, 2014 has been issued by the government opening up the rail infrastructure for investment by the private sector. The following activities has been opened up for FDI.

Construction, operation, maintenance of

(i) Suburban corridor projects through PPP;
(ii) High speed train projects;
(iii) Dedicated freight lines;
(iv) Rolling stock including train sets, and locomotives/ coaches manufacturing and maintenance facilities
(v) Railway electrification;
(vi) Signalling systems;
(vii) Freight terminals
(viii) Passenger terminals
(ix) Infrastructure in industrial park pertaining to railway line/ sidings including electrified railway lines and connectivities to main railway lines, and
(x) mass rapid transit systems.

100% FDI is allowed automatic basis but FDI beyond 49% of the equity of the investee company in sensitive areas will be put forth to the Cabinet Committee on Security for consideration on a case by case basis.

They have not allowed FDI or private investment in maintenance of railway stations or platforms and that is much needed because the existing infrastructure for maintenance and upkeep of the railway stations and platforms is not at all adequate, especially from the point of view of facilities to the passengers. I thought they should have allowed private investment in online and offline bookings as well because the IRCTC site as we know is totally unreliable.


A copy of the DIPP press note can be found here



 

Hyderabad Half Marathon - flyovers too many

Honestly when i reached the 18km mark at the recently held Airtel Hyderabad Half marathon on Sunday, 24th August, 2014 little did i expect to see a queue of runners all walking up the last flyover. That was indeed the last flyover on the route and although there was one very short incline thereafter also, but that was a major climb over for the day.

Hyderabad half marathon starts at Necklace road adjacent to the the Hussain Sagar Lake and finishes at Gadchibowli stadium. It is a point to point route unlike the out and back route that most half marathons prefer for some reason, this route has been made a point to point one. It has three flyovers i.e. immediately at the start with only 100 or 200 metres into the race and then one at 2 kms which is a long undulating one which seemingly never ends and once you get down from that 2nd flyover, then there are a series of undulations provided by the natural topography of Hyderabad. Most of the route passes through commercial areas of Hyderabad, which is why  you rarely get any cheering crowd from the local population. For all that matters, the local residents may be asleep blissfully unaware that a marathon event is taking place in their city.

The route is tough but the weather made it tougher that day because sun arose early itself at 6.30 a.m. and it was ahead of us i.e. hitting us in the face until 14 kms when we turned left and the sun mercifully was behind us. At that stage only i.e. at 14 kms on the left side road, there was some welcome breeze for a change. The saving grace was the railings put up by Hyderabad Metro Rail for construction purposes which was acting like a barricade and thereby providing some shade.

Otherwise the water and medical station were aplenty, well stocked, well distributed with lots of volunteers knowing their job and also acting as a cheering brigade. The finishing line was inside the stadium for it was a bit of a boost for many runners to be finishing in olympic style, but i would preferred an out and back route because one gets lots of cheering from the returning runners and also the finishing point being far too away from the centre of the city, trudging back to the city becomes a bore!!

Arrangements at the stadium was good, medals properly handed over, the refreshments handed over at the ground itself though it was a bit chaotic at the stadium with so many runners lying about in various stages of distress or agony.

But in leaving i thought having a natural undulating topography would have been a sufficient route, but adding that flyover at 18 kms mark was a bad mistake!! 

PPF investment limit expanded

The Government has vide its gazette notification dated 13th August, 2014 which is available here and the RBI has vide its notification dated 22nd August, 2014 which is available here enhanced the limits which can be invested in a Public Provident Fund Scheme from Rs.1.00 lakh per annum to Rs.1.50 lakhs per annum. This is effective from 13th August, 2014. 

One person company under Companies Act, 2013

One Person Company

 The Companies Act, 2013 introduces a new concept of “One person company”. This is the first time such a concept is being introduced in India. Basically it is giving legal corporate status of Proprietorship form of doing business. Salient features of this new concept are explained below:

 DEFINITION:

 Section 2(62) defines a “One Person Company” means a company which has only one person as a member.

 INCORPORATION:

 Section 3(1)(c ) – OPC can be formed only as a private company.

 In the subscription clause of the memorandum of association of an OPC, the member will state that he is subscribing to all the shares in the capital of the company.

 The Table F which is the model Articles of Association of a company limited by shares incorporates provisions of an OPC especially regarding membership, nominees, annual general meetings and board meetings.  The relevant clauses are clause 27, 48 and 76 respectively.

 Rule 3 of Companies (Incorporation) Rules provides that

 –      only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate a OPC and to become a nominee for the sole member of the OPC

(so body corporates, foreigners cannot incorporate an OPC);

-      a person cannot incorporate more than one OPC or become a nominee in more than one OPC; (But he can be a member of one OPC and nominee of another OPC)

-      Where a member of an OPC becomes a member of another OPC by virtue of his nomination in that second OPC, he shall opt out of either one within a period of 180 days;

-      A minor cannot become a member or nominee of OPC or holds shares with beneficial interest;

-      An OPC cannot be incorporated or converted into a company under section 8 of the Act, which is the erstwhile section 25 companies or not for profit companies;

-      An OPC cannot carry out NBFC activities including investment in securities of any body corporate;

-      An OPC cannot convert itself voluntarily into any kind of company for a period of two years from the date of its incorporation unless within that period its paid up share capital increases to more than Rs.50 lakhs OR average annual turnover during the relevant period exceeds Rs.2 crores;

  

Section 12(3) second proviso states that the words “One Person Company” shall be mentioned in brackets below the name of such company wherever it is printed, affixed or engraved.  So it should be mentioned as follows:

Sachin Tendulkar

(One Person Company)

Not Sachin Tendulkar OPC or Sachin Tendulkar One Person Company

it should be mentioned below the name as required in the section.

 CONVERSION OF OPC INTO PRIVATE/ PUBLIC COMPANIES

 Rule 6 of the Companies (Incorporation) Rules, provides that where the paid-up share capital of an OPC exceeds Rs.50 lakhs or its average annual turnover during the relevant period exceeds Rs.2 crores then within 6 months from the date on which its paid up share capital increased as above or the last day of the relevant period for the turnover purposes, it shall convert itself into either a private company or a public company. “Relevant period” means a period of three immediately preceding consecutive financial years.

 An OPC can however voluntarily convert itself into a private company or a public company by increasing its members but only after 2 years from the date of its incorporation.

 CONVERSION OF PRIVATE COMPANY INTO OPC;

 An existing private company other than a section 8 company (i.e. not for profit company) having paid up share capital of Rs.50 lakhs or less OR average annual turnover during the relevant period of Rs.2 crores or less can convert itself into an OPC by passing a special resolution in the general meeting;

 Before passing such special resolution, the private company should obtain No Objection to conversion in writing from members and creditors;

 The private company can then start the procedure for conversion by submitting the relevant documents to the ROC.

 A public limited company cannot obviously convert itself into an OPC.

 NOMINATION:

 The memorandum of OPC  shall indicate the name of the other person who has given his consent in the prescribed form to be so named and who shall, in the event of the member becoming incapacitated due to death or incapacity to contract, become the member of the company. The written consent of such other person shall also be filed alongwith the incorporation documents while forming OPC;

 The memorandum of the company shall state the name of the person who in the event of the death of the subscriber shall become the member of the company.

 The member has powers at any time to change the name of the nominee by giving notice in the prescribed form. The new nominee should also give his consent to his name so appearing and any change in the nominee shall require amendment in the memorandum of association.

 Rule 4 of the Companies (Incorporation) Rules deals with nomination process:

 The nominee can withdraw his nomination by giving his consent to the member and also the OPC. In that case, the member shall nominate another person within 15 days of the notice of withdrawal after obtaining his written consent and send intimation of such nomination to the company. The OPC is required to file the notice of withdrawal of consent and fresh nomination within a period of 30 days from the notice of withdrawal.

 ANNUAL RETURNS AND FINANCIAL STATEMENTS:

 Section 92 provides that the annual return of an OPC should be signed by the company secretary or where there is no company secretary by a director.  This is a very queer kind of provisions because it fails to reason why an OPC should appoint a Company Secretary in its rolls since the provisions regarding mandatory appointment of KMP is way beyond the life of an OPC as per the Act. It should have been better if the requirement was that the annual return be signed by a Company Secretary in Practice.

 Section 134(1)  states that the financial statement(s) of the OPC shall be signed by one Director on behalf of the OPC before they are given to the Auditors for their Report thereon. Section 2(40) excludes the cash flow statement from the definition of financial statement in case of OPC.

 The Board report of the OPC need not contain the detailed disclosures as are enumerated in section 134(3) but should contain explanations or comments on every qualification, reservation or adverse remark made by the auditor in his audit report.

 The Third Proviso to section 137(1) gives leeway to an OPC to file its financial statement along with other documents that are required to be filed/ attached with it, with the Registrar within 180 days from the closure of the financial year. Here since there is no concept of annual general meeting for OPC, it is 180 days from the closure of the financial year. So basically OPCs have six months to file its annual financial statements with the Registrar.

 GENERAL MEETINGS AND BOARD MEETINGS

 Section 96 provides that an OPC is not required to hold the mandatory annual general meeting.

 Section 98 regarding power of tribunal to call meetings of members is not applicable to OPC.

 Sections 100 to 111 is also not applicable to OPCs.

 Section 100 – convening of extra-ordinary general meetings;

Section 101 – notice of general meeting

Section 102 – explanatory statement

Section 103 – quorum for general meetings

Section 104 – chairman of meetings

Section 105 – proxies

Section 106 – restriction on voting rights

Section 107 – voting by show of hands

Section 108 – voting through electronic means

Section 109 – demand for poll

Section 110 – postal ballot

Section 111 – circulation of members’ resolutions

 Since the provisions of general meetings are being excluded for an OPC, the question remains how the matters that are generally decided upon at the general meetings in case of normal companies are dealt with in OPCs. This question has been answered in section 122 (3) as follows:

 122 (3) For the purposes of section 114, any business which is required to be transacted at an annual general meeting or other general meeting of a company by means of an ordinary or special resolution, it shall be sufficient if, in case of One Person Company, the resolution is communicated by the member to the company and entered in the minutes-book required to be maintained under section 118 and signed and dated by the member and such date shall be deemed to be the date of the meeting for all the purposes under this Act.

 Even in case of Board meetings of OPCs, section 122(4) gives the answer:

 122(4) Notwithstanding anything in this Act, where there is only one director on the

Board of Director of a One Person Company, any business which is required to be transacted at the meeting of the Board of Directors of a company, it shall be sufficient if, in case of such One Person Company, the resolution by such director is entered in the minutes-book required to be maintained under section 118 and signed and dated by such director and such date shall be deemed to be the date of the meeting of the Board of Directors for all the purposes under this Act.

 What this means is that where there is more than one Director in the Board of Directors of the OPC, then they should convene and hold Board meetings as are done by normal companies and the procedure and practices to be followed by normal companies in such cases should be followed by the said OPC.

 Section 173(5) provides that OPCs shall be required to convene only one meeting in each half of a calendar year provided however that the gap between two Board meetings is not less than 90 days.  This is a peculiar provision which says that the gap between two Board meetings of an OPC should be not less than 90 days between each meeting. What will happen if an urgent Board meeting is required to be convened before 90 days from the conclusion of the first Board meeting. I thought the wording should have read as “not more than 90 days”

 Again this provision is not applicable where the Board of Director of OPC comprises of only one Director. In that case of course the  provisions of section 122(4) applies.

 Section 174 is regarding quorum of meetings of Board of Directors. This section will not apply to an OPC which has only one Director in its Board of Directors.

 DIRECTORS:

 Section 149(1)(a) provides that minimum one director should be appointed in an OPC. There is no restriction to appointing more than one director in an OPC, but maximum no. of directors that can be appointed is 15 as per section 149(1)(b).

 Section 152(1) provides that the subscriber to the memorandum shall be deemed to be the first director of the company until director(s) are duly appointed by the member in accordance with the provisions of the section.

 RELATED PARTY TRANSACTIONS:

 Section 193 is important regarding related party contracts by OPC. It says:

 193. (1) Where One Person Company limited by shares or by guarantee enters into a

contract with the sole member of the company who is also the director of the company, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first meeting of the Board of Directors of the company held next after entering into contract:

 Provided that nothing in this sub-section shall apply to contracts entered into by the company in the ordinary course of its business.

 (2) The company shall inform the Registrar about every contract entered into by the company and recorded in the minutes of the meeting of its Board of Directors under sub-section (1) within a period of fifteen days of the date of approval by the Board of

So related party contracts with the sole member who is also the Director of the company are required to be entered in the memorandum or minutes and also communicated to the Registrar within 15 days of the Board meeting where the contract is approved.

Dormant company under the Companies Act, 2013

The Companies Act, 2013 introduces a concept of a dormant company within its ambit. It is the first time that such a concept is thought of, i.e. company which is not active. There is no definition of what constitutes a dormant company under the definition clause. A definition appears in section 455 of the Act and here also the concept is defined in a very roundabout manner.

Section 455 states

(1) Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.

So dormant company can be a company formed for a future project or to hold an asset or intellectual property without there being any significant accounting transaction OR an inactive company. Now inactive company has been defined in section 455 as under:

(i) “inactive company” means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years;

So we get the definition of an inactive company from this definition which means that any company which has not been doing any business for the last two years OR (and here's the doosra!!) they have not filed any financial statements and annual returns for the last two years. So it means any active company doing regular business and regular accounting transactions, but has failed to file its mandatory annual documents, then it can also be construed to become a dormant company!!

Significant accounting transaction is also defined in order to clear out any ambiguity, it means

(ii) “significant accounting transaction” means any transaction other than—
(a) payment of fees by a company to the Registrar;
(b) payments made by it to fulfil the requirements of this Act or any other law;
(c) allotment of shares to fulfil the requirements of this Act; and
(d) payments for maintenance of its office and records.

So a company can apply for a "dormant company" to itself by making the necessary application in this behalf. And the Registrar shall maintain a Register of Dormant companies in its Records or Portal.

In case a company has not filed its annual mandatory documents for the last two years, then the Registrar can take it to the Dormant company status. It is not clear what happens when the company is taken to the dormant company status in such a scenario.

However a dormant company is still required to have minimum directors, hold minimum two Board meetings and file minimum one annual financial document with the Registrar.

A dormant company can apply to revert back to Active status company.

Now we come to the procedures for which we turn to the Companies (Miscellaneous) Rules, 2014

1) Application for obtaining status of dormant company is required to be made in form MSC-1 along with the fees. The fees ranges from Rs.2000/- for a company with a share capital upto Rs.25 lakhs to Rs.20,000/- for a company which has share capital more than Rs.10 crores;
2) Application for obtaining status of dormant company can be made only after obtaining special resolution approval of the shareholders or issuing notice to all the shareholders and obtaining consent of at least 3/4th of the shareholders in value terms;
3) Conditions : No inspection, inquiry, or investigation has been ordered or taken up against the company OR no prosecution has been initiated against the company and pending under any court
4) The company does not have any public deposits or interest thereon outstanding for payment
5) There is no outstanding loan, secured or unsecured. If there are unsecured loans then consent of the lender should be obtained and enclosed along with the form;
6) There should be no dispute or difference amongst the management or promoters of the company and a certificate to that effect is enclosed;
7) The company does not have any outstanding tax dues either to central or state government or local authorities;
8) The company has not defaulted in payment of its workmen's dues;
9) It is not a listed company;

The Registrar shall after considering the application issue a "Dormant company" status to the company and enter its name in the Register maintained for the purpose.

The company shall continue to have minimum number of directors (i.e. 3 in case of a public company and 2 in case of a private company);

Rotation of auditors shall not apply to a dormant company.

A dormant company shall file an annual "Return of Dormant Company" in form MSC-3 which indicates the financial position of the company and which shall be duly audited by a chartered accountant in practice. This should be filed within 30 days from the end of each financial year. i.e. on or before 30th April every year.

However, there is a proviso to Rule 7 of Companies (Miscellaneous) Rules, 2014 which says that a dormant company shall continue to file its return of allotment or change in directorships if such events occur. Really, if such events are going to occur in a dormant company, then should the company be called a dormant company or an active status company. It is not clear and there is ambiguity in this matter. Change in directorships could occur upon the death or incapacity of a director so that is understood in that context.

Section 173(5) stipulates that a dormant company should hold two Board meetings in a financial year i.e one each in each half of the financial year and the gap between two Board meetings should not be less than 90 days. This stipulation is not clear because once a company is a dormant company then where is the need to hold a Board meeting, except perhaps to approve the annual financial statements. I guess two Board meetings in a financial year has been stipulated as a matter of abundant caution.

The dormant company can revert to an active status company by making another application under section 455(5) of the Act in form MSC-4 along with the requisite fees. This application should be accompanied by the return in form MSC-3.

Proviso to Rule 8 of the Companies (Miscellaneous) Rules, 2014 says that a dormant company cannot remain as a dormant company for more than 5 consecutive financial years. If it remains so, then the Registrar shall commence the process of striking off the name of the company from the Records, i.e. the company will be removed. So maximum tenure for a dormant company is 5 consecutive financial years.

Rule 8(4) ibid provides that where the Registrar has a doubt that a dormant company has been indulging in business activities and in fact it is not dormant then he can take necessary action to revert its status to an active company.

So the entire concept of dormant company while it is not clearly defined in the Act or Rules, means that any company which is not doing business for two financial years and is not intending to do any business in the near future for upto 5 years can make an application to place its status as a dormant company under the Records. What this will ensure that the legal status of the company is intact and the name is available to the company for any future business programs. However as mentioned above, it cannot remain as a dormant company in perpetuity. It should make a decision to revert to an active status within 5 years or the Registrar will be empowered to strike off the name of the company from its records.

Many a times, promoters incorporate companies but either there is dispute between the promoters or a major project fails through or it is formed for holding an intellectual property title or an asset, then this concept of dormant company comes into use. All the company has to do is to file one annual financial document duly certified by a CA and keep the Directors in tact in the company.

Unfinished Potrait

Published in 1934 under the pseudonym Mary Westmacott, Unfinished Portrait stands far removed from the ingenious labyrinths of Hercule Poirot and Miss Marple, yet it is no less profound in its psychological acuity or emotional resonance.

The novel commences on a desolate cliffside, where a middle-aged woman, Celia, contemplates the ultimate negation of existence — suicide. Her solitude is serendipitously interrupted by Larraby, a distinguished portrait artist who, perceiving the tremors of despair beneath her calm exterior, engages her in conversation. What ensues is a confessional dialogue — a gradual unspooling of Celia’s life, painted with the delicate precision of an artist layering pigment upon canvas.

Through her reminiscences, we trace the arc of Celia’s existence: a lonely childhood circumscribed by an almost suffocating attachment to her mother; a shy, impressionable adolescence; a marriage to the genial yet unimaginative Dermot; and the slow corrosion of that union under the weight of routine, emotional neglect, and infidelity. Her story charts the trajectory from innocent girlishness to world-weary disillusionment, culminating in the existential crisis that brings her to that windswept precipice.

At its emotional core, Unfinished Portrait is an exploration of loneliness, vulnerability, and the fragile architecture of human attachment. Unlike Christie’s detective fiction — where chaos yields to clarity through the ministrations of reason — here, disorder persists. The portrait remains, in every sense, unfinished.

The autobiographical undercurrents are unmistakable. Celia’s emotional landscape mirrors Christie’s own: the early loss of a beloved father, the overdependence on her mother, the marriage to Archie Christie, his betrayal, and the ensuing psychic collapse that drove her into a brief disappearance from the world. The pain that seeps through Celia’s recollections feels raw, unvarnished — as if Christie were transmuting her private anguish into art, exorcising her ghosts through fiction.

Larraby, the empathetic listener, functions as both confessor and therapist — a surrogate for the reader and perhaps for the author’s own yearning for understanding. Through him, Christie meditates on the redemptive potential of art: that to truly see another human being — to apprehend their beauty, brokenness, and contradictions — is itself a creative and moral act.

Celia emerges as one of Christie’s most psychologically intricate creations. Her sensitivity, insecurity, and ceaseless hunger for affection render her heartbreakingly real. Her tragedy does not stem from folly or vice but from an irreconcilable tension between her inner world and the rigid expectations of the society that constrains her.

Dermot, by contrast, epitomises the amiable mediocrity of the early twentieth-century husband — practical, affable, but emotionally tone-deaf. His inability to comprehend Celia’s yearning speaks to a broader commentary on gendered misapprehensions within marriage and the emotional isolation they breed.

Larraby’s role, though seemingly peripheral, is thematically pivotal. He is the compassionate observer — the artist who perceives symmetry in imperfection and meaning in the fragmentary.

Christie’s prose here is shorn of the clockwork precision of her mysteries and assumes instead a lyrical, introspective cadence. There is an unguarded sincerity to her voice; one senses that every line bears the weight of lived experience. The dialogue between Celia and Larraby oscillates between melancholy and illumination, its rhythm reminiscent of confession or psychoanalysis. The novel’s structure — a story embedded within a conversation — lends it a distinctly Proustian flavour, where memory becomes both sanctuary and scourge.

In the final reckoning, Unfinished Portrait is not a mystery of crime, but of consciousness — the story of a woman who, having traversed the terrain of love, betrayal, and despair, seeks meaning amidst the ruins of her own heart.

If it lacks the taut architecture of Christie’s detective plots, it compensates amply with its quiet, devastating emotional veracity. It lingers in the mind not through suspense but through empathy, melancholy, and its refusal to offer facile consolation.

A profoundly introspective and hauntingly personal work, Unfinished Portrait is less the story of Celia alone than the self-revelation of Agatha Christie herself — rendered with remarkable restraint, candour, and compassion.

Picture taken from the internet, not with an intention to violation of copyright. 

Independent Directors' Repository

Vide PIB release dated 12th August, 2014, a portal exclusively devoted to independent directors has been created at http://independentdirector.in

Vide section 149(4) of the Companies act, 2013, every listed company shall have at least one third of its Board of Directors as independent director.

Other categories of companies which are required to have at least two independent directors on its Board are

(i) the Public Companies having paid up share capital of ten crore rupees or more; or
(ii) the Public Companies having turnover of one hundred crore rupees or more; or
(iii) the Public Companies which have, in aggregate, outstanding loans, debentures and deposits, exceeding fifty crore rupees:

Now persons who are interested in becoming independent directors can register themselves at the above site. But they will be required to have a Director Identification Number before applying themselves.

Salient features of the concept of independent director (ID) under the Act are as follows:

(1) An ID has to give his consent for being appointed as a director of the company.
(2) At least one ID will be on the Corporate Social Responsibility Committee wherever such a Committee is required to be appointed;
(3) An ID cannot be the Managing Director, Whole-time Director or Nominee Director of the company.
(4) An ID is required to give a declaration of independence at the first meeting of the Board where he is appointed as also at the first meeting of the Board in every financial year;
(5) The ID is required to abide by the Code of Conduct specified in Schedule IV of the Companies act, 2013;
(6) The ID is not entitled to receive any stock options from the company;
(7) The ID may be remunerated by way of sitting fees, reimbursement of expenses involved in participation in Board and other meetings and profit related commission, if the members approve of it;
(8) The ID shall be eligible for appointment for two terms of 5 years each in succession, but can be considered for appointment after a grace period of three years. Term shall mean any term less than but not more than 5 years at a stretch;
(9) During the grace period of three years, he should not be associated with the company in any capacity;
(10) An ID shall be held liable, only in respect of such acts of omission or commission by a company which has occurred with his knowledge, attributable through Board process and with his consent or connivance or where he has not acted diligently;
(11) An ID shall not retire by rotation;
(12) No person shall be appointed as an alternate director for an independent director unless he fulfils the criteria and condition for appointment as independent director;

QUALIFICATIONS FOR BEING AN INDEPENDENT DIRECTOR ARE AS FOLLOWS:

An independent director in relation to a company, means a director other than a managing director or a whole-time director or a nominee director,—
(a) who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience;
(b) (i) who is or was not a promoter of the company or its holding, subsidiary or associate company;
(ii) who is not related to promoters or directors in the company, its holding, subsidiary or associate company;
(c) who has or had no pecuniary relationship with the company, its holding, subsidiary or associate company, or their promoters, or directors, during the two immediately preceding financial years or during the current financial year;
(d) none of whose relatives has or had pecuniary relationship or transaction with the company, its holding, subsidiary or associate company, or their promoters, or directors, amounting to two per cent. or more of its gross turnover or total income or fifty lakh rupees or such higher amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year;
(e) who, neither himself nor any of his relatives—
(i) holds or has held the position of a key managerial personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed;
(ii) is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed, of—
(A) a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company; or
(B) any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to ten per cent. or more of the gross turnover of such firm;
(iii) holds together with his relatives two per cent. or more of the total voting power of the company; or
(iv) is a Chief Executive or director, by whatever name called, of any non-profit organisation that receives twenty-five per cent. or more of its receipts from the company, any of its promoters, directors or its holding, subsidiary or associate
company or that holds two per cent. or more of the total voting power of the company; or
(f) who possesses such other qualifications as may be prescribed.















 


 

Insider Trading order by SEBI

SEBI has passed an insider trading order in the matter of Mr. X of Wipro Ltd.

As per Regulation 13(4) of the Prohibition of Insider Trading Regulations 1992

(4) Any person who is a director or officer of a listed company, shall disclose to the company and the stock exchange where the securities are listed in Form D, the total number of shares or voting rights held and change in shareholding or voting rights, if there has been a change in such holdings of such person and his dependents (as defined by the company) from the last disclosure made under sub-regulation (2) or under this sub regulation, and the change exceeds Rs. 5 lakh in value or 25,000 shares or 1% of total shareholding or voting rights, whichever is lower.

It was concluded that Mr. X was an Officer within the purview of the Regulations and therefore having traded shares exceeding Rs.5 lakhs during November - December 2012 and not having given the necessary intimation in Form D he was held guilty under the PIT Regulations 1992 and fined Rs.5 lakh.

A copy of the order can be found here

Definition of Officer in the relevant regulations can be found here:

Regulation 2 (g) of PIT Regulations, 1992 - "Officer of a company' means any person as defined in Clause (30) of Section 2 of the Companies Act, 1956 (1 of 1956) including an auditor of the company".
Section 2 (30), Companies Act, 1956- Definition of ‘Officer’ – “Officer includes any director, manager or secretary or any person in accordance with whose directions or instructions the Board of directors or any one or more of the directors is or are accustomed to act”.

Interesting to note that the person is the geographical head of a particular territory and he in turn reports to the CEO of the organisation. Therefore SEBI holds him as an Officer since he is holding an important position in the organisation .

 

Death is now my neighbour

Colin Dexter’s Death is Now My Neighbour — a jewel in the illustrious crown of his Inspector Morse series — stands as a paragon of literary crime fiction: witty in its repartee, erudite in its allusions, and psychologically nuanced in its dissections of human frailty. It is a novel where intellect waltzes with intrigue, and the hallowed cloisters of Oxford once more serve as the theatre for ambition, duplicity, and moral decay.

The narrative commences with an act of chilling simplicity and devastating effect: Rachel James, an unassuming young woman in tranquil North Oxford, is felled by a sniper’s bullet through her kitchen window. The deed appears motiveless — the victim, blameless and decorous, seemingly bereft of any entanglements that might invite such violence. Yet, as any devotee of Dexter’s oeuvre will anticipate, beneath this placid surface festers a labyrinth of secrets and suppressed transgressions.

Inspector Morse — that irascible, beer-loving polymath with a penchant for Wagner and crosswords — and his ever-patient lieutenant, Sergeant Lewis, are drawn into the febrile precincts of Lonsdale College. There, an internecine struggle between two venerable dons — Denis Cornford and Julian Storrs — simmers with barely disguised venom, each man coveting the soon-to-be-vacant Master’s chair. The murder of Rachel James, and a subsequent killing that follows in grim cadence, become inextricably enmeshed with this genteel academic rivalry.

What begins as a seemingly random crime metastasises into a tapestry of blackmail, lust, and academic politicking. As Morse unravels these skeins of deception, he finds himself confronting uncomfortable truths — about love’s elusiveness, loyalty’s fragility, and the inexorability of mortality. Dexter, ever the moral anatomist, uses Oxford not merely as scenery but as allegory: a city of dreaming spires shadowed by hypocrisy and hubris. The novel interrogates the paradox of intellect — that the same mind capable of sublime reasoning may also justify base ambition.

The motif of appearance versus reality recurs with mordant insistence. Behind the varnished civility of scholarly life lurk duplicity, erotic entanglement, and corrosive guilt. Dexter’s irony, dry as vintage sherry, exposes these contradictions with clinical precision.

Inspector Morse remains one of crime literature’s most singular creations — brilliant yet fallible, arrogant yet achingly human. His sardonic humour and curmudgeonly charm coexist with a deep, often unspoken melancholy. Lewis, with his unpretentious decency and unvarnished wisdom, tempers Morse’s cerebral arrogance, grounding the narrative with warmth and humanity. Their partnership — equal parts irritation and affection — is among the most endearing in detective fiction.

Cornford and Storrs, the duelling dons, epitomise Oxford’s genteel ferocity: urbane, cultured, and capable of ruthless calculation under the guise of civility. Even Dexter’s peripheral figures — from journalists to secretaries — are limned with deft precision, each a miniature study in human folly.

Dexter’s prose is, as ever, urbane and lapidary — its cadence that of a scholar-poet. Latin epigrams, classical references, and literary quotations adorn the text, not as pretentious ornamentation but as natural outgrowths of Morse’s cultivated mind. The narrative tempo is unhurried, more akin to a symphonic adagio than a staccato thriller, inviting the reader to savour rather than devour.

When the dénouement arrives, it does so with both surprise and inevitability — the hallmark of a craftsman at the height of his powers.

Death is Now My Neighbour is, in every sense, vintage Dexter — intelligent, ironic, and steeped in the sepia melancholy of Oxford’s cloisters. It marries the cerebral pleasures of the classical detective story with the introspective resonance of literary fiction. In the end, Dexter gives us more than a murder solved; he offers a moral autopsy of ambition and deceit — and, in the process, deepens our understanding of that most enigmatic of sleuths, the incomparable Inspector Morse. 

Picture taken from the internet not with an intention to violation of copyright. 

Free ATM transactions in banks.

Free ATM transactions from other bank ATMs are down to 3 per month, from 5 per month earlier. However individual banks may if they want keep it at 5 free transactions per month. Any transaction above 3 in a month would attract a levy of Rs.20/- plus service tax. This is contained in a RBI circular dated 14th August, 2014 which can be found here

But this limit of 3 free transactions per month will apply only in the 6 metro cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad. In all other cities and towns, the limit of 5 free ATM transactions still apply.

Reduction will not apply to small/ no frills/ basic savings account which continues to get free services as before.

Own bank ATM transactions will continue to be free for five transactions per month.

In order to beat this levy, makes sense to use own bank ATM transactions for upto 5 times a month and other bank ATMs for upto 3 times in a month. I am sure no body would withdraw more than 8 times a month!!

 

Company Law Settlement Scheme 2014

The Ministry of Corporate Affairs has announced a new Company Law Settlement Scheme 2014 to enable companies which have defaulted in filing their mandatory annual documents to file the same at reduced additional fees of 25% of the normal additional fees. The salient features of the Scheme are as follows:

1) The Scheme is open from 15th August, 2014 to 15th October, 2014
2) Applicable for filing of annual statutory documents like compliance certificate, audited financial statements, annual return and auditors appointment only.
3) Not applicable for other event based documents.
4) Companies can file the documents under respective forms 66, 23ac, 23aca, 20b, 21a and 23b by filing the same within the period. They have to pay the filing plus 25% of the additional filing fees payable.
5) The companies will have to file an immunity application in respect of these documents which were filed under the CLSS 2014. The e-immunity application will be required to be filed after the annual documents are taken on record or approved by the ROC. The e-immunity application counter will be open  for a period of three months after the closure of the Scheme.
6) The designated authority will consider the e-immunity applications and pass the necessary orders;
7) Companies which have already been issued with show cause notices from MCA in respect of non filing of the documents, and which has filed an appeal in a competent court, will have to first withdraw the appeal before it will be allowed to file the documents under the CLSS 2014.
8) The disqualification of directors under section 164 of the Companies Act, 2013 will apply only to prospective defaults if the company files the necessary documents under the CLSS 2014.
9) CLSS 2014 will not apply to vanishing companies, striking off action companies under section 560 of the Companies Act, 1956 and companies which have filed for dormant status under section 455 of the Companies Act, 2013;


DEFAULTING INACTIVE COMPANIES:

1) Where the company is inactive, i.e. there is no business in it, they can also take advantage under the Scheme by either

(a) applying to get themselves declared as dormant companies by filing the necessary form at 25% of the normal fees applicable on the said form. OR
(b) apply for striking off their names from the Register of the MCA by filing the necessary form at 25% of the normal fees applicable on the said form.

The MCA circular is available at this link

Tokyo station

Martin Cruz Smith once again demonstrates his consummate mastery of the historical thriller in Tokyo Station, a novel set in 1941 at the very cusp of the cataclysm that would engulf the world—the Second World War. At its heart is Harry Niles, the son of American missionaries yet a man indelibly shaped by the labyrinthine alleys and moral ambiguities of Tokyo’s underworld. More Japanese in sensibility than American by birthright, Harry occupies a perilous liminal space—viewed with suspicion by the Japanese as a possible spy and distrusted by his own countrymen as a man gone native.

Entangled in his fate are a vengeful Japanese colonel, still nursing a grudge from Nanking in 1937, and Michiko, his elegant yet tormented mistress, caught in the excruciating conflict between love and loyalty to her nation. Smith’s narrative unfolds against the ominous backdrop of impending war, culminating in a hauntingly vivid evocation of the events leading to the attack on Pearl Harbor.

With his characteristic blend of intrigue, betrayal, and psychological acuity, Smith crafts a story that is as suspenseful as it is sophisticated—a brilliant meditation on identity, allegiance, and survival in an age poised on the brink of devastation. Goodreads 4/5

Picture taken from the internet not with an intention to violation of copyright. 

RIL fined rs.13 crores by SEBI

Reliance Industries Limited has been fined rs.13 crores by SEBI for incorrectly reporting the diluted earnings per share in its quarterly financials during the period 2007-08. The copy of the judgment can be found here.

Without going into the merits or demerits of the case as to whether the company has or has not incorrectly reported the diluted earnings per share, if one looks at the quantum of fine levied as to whether it is proportionate or disproportionate to the crime committed. Section 23J of the Securities Contracts Regulation Act says as under

23 J - Factors to be taken into account by the adjudicating officerWhile adjudging quantum of penalty under section 23-I, the adjudicating officer
shall have due regard to the following factors, namely:-
 (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
 (b) the amount of loss caused to an investor or group of investors as a result of the default;
(c) the repetitive nature of the default.

Para 34 of the Judgment says as under:

34.Specific quantum of any direct or indirect unfair gain made by the Noticee and the loss caused to the investor or group of investors, are not available on records. However, as observed above, the fact cannot be ignored that millions of shareholders/investors were deprived of correct disclosures about DEPS. As regards to the repetitive nature of default, as observed above that the Noticee had failed to disclose the DEPS repetitively for the six quarters.Hence, an appropriate penalty needs to be imposed upon the Noticee, taking into account the aforesaid gravity of the violations committed.

The sections relied upon for levying penalty is section 23A(a) and 23E of SCRA, which is reproduced hereunder:

Penalty for failure to furnish information, return, etc.23A. Any person, who is required under this Act or any rules made thereunder,—
(a) to furnish any information, document, books, returns or report to a recognised stock exchange, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange, shall be liable to a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less for each such failure;
Penalty for failure to comply with provision of listing conditions or delisting conditions or grounds
23E. If a company or any person managing a collective investment scheme or mutual fund fails to comply with the listing conditions or delisting conditions or grounds or commits a breach thereof it or he shall be liable to a penalty not exceeding Rs.25 crores.

SEBI order on listed company for non redressal of investor complaints

This is an interesting case passed by SEBI and put up at their website here regarding an order passed against a listed company viz. Vakrangee Softwares Limited. This company had some 10 investor complaints pending against it in the SCORES system when the show cause notice was issued to it. Subsequently one after another the company started redressing one complaint after another. By the time there was a hearing on 22nd January, 2014 there were only five complaints pending against it, though the company has said that there were no complaints pending. After going through the records SEBI came to the conclusion that all the complaints were resolved albeit with a delay.

SEBI relied on section 15-C of the SEBI Act which stated as under:

Penalty for failure to redress investors’ grievances. 
15C. If any listed company or any person who is registered as an intermediary, after having been called upon by the Board in writing, to redress the grievances of investors, fails to redress such grievances within the time specified by the Board, such company or intermediary shall be liable to a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less.

Further section 15J gives guidelines on the quantum of penalty.

“15J - Factors to be taken into account by the adjudicating officer 
While adjudging quantum of penalty under section 15-I, the adjudicating officer shall have due regard to the following factors, namely:-
a. the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
b. the amount of loss caused to an investor or group of investors as a result of the default;
c. the repetitive nature of the default.”

SEBI came to the conclusion that it was unable to quantify the amount of disproportionate gain or unfair advantage or loss to investors and therefore levied a token penalty of Rs.2 lakhs on the company.

I don't know whether the company is going in for appeal against this decision of SEBI.

But for listed company and its intermediaries i.e. the Registrars and Share Transfer Agents this is a wake up call that they should not treat investor complaints lightly. I hope similar penalties are levied against the Mutual Funds who are notorious in their customer service. 

Securitisation/ Reconstruction Companies - amendments in regulatory framework

RBI has issued notification dated 5th August, 2014 wherein certain amendments to the regulatory framework involving securitisation/ reconstruction companies have been carried out in order to check the sale of bad loans to SRCs/ARCs and making them i.e. the SRCs/ ARCs more accountable according to this Economic Times news report here

The salient features of the new guidelines are briefly summarised as under

1. Investment of SCs / RCs in Security Receipts (SRs) - At present, SCs/RCs have to mandatorily invest and hold minimum 5% of the SRs issued by them against the assets acquired on an ongoing basis. Henceforth, SCs/RCs shall, by transferring funds, invest a minimum of 15% of the SRs of each class issued by them under each scheme on an ongoing basis till the redemption of all the SRs issued under such scheme.
2. More time for due diligence - Before bidding for the stressed assets, SCs/RCs may seek the auctioning banks to give adequate time, not less than 2 weeks, to conduct a meaningful due diligence of the account by verifying the underlying assets.
3. Change in definition of Planning period - Planning period will mean a period not exceeding six months (instead of twelve months as at present) allowed for SCs / RCs to formulate a plan for realization of non-performing assets of the selling bank acquired for the purpose of reconstruction.
4. Valuation of SRs -The initial valuation of SRs should be done within a period not exceeding six months of acquiring the underlying asset (instead of one year as at present) to enable all the stake holders to realistically assess the value of SRs at an earlier date.
5. Management fees - Management fees should be calculated and charged as percentage of the net asset value (NAV) at the lower end of the range of the NAV specified by the Credit Rating Agency (CRA) (rather than on the outstanding value of SRs as at present), provided that the same is not more than the acquisition value of the underlying asset. However, management fees are to be reckoned as a percentage of the actual outstanding value of SRs, before the availability of NAV of SRs.
6. Membership in Joint Lenders’ Forum (JLF) - In terms of Circular DBOD.BP.BC.No.97/21.04.132/2013-14 dated Feb. 26, 2014 on ‘Framework for Revitalising Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)’, the banks have been advised that as soon as an account is reported by any of the lenders to ‘Central Repository of Information on Large Credits’ (CRILC) as SMA-2, they should mandatorily form a committee to be called JLF if the aggregate exposure (AE) [fund based and non-fund based taken together] of lenders in that account is Rs 100 crore and above. SCs/RCs also should be members of JLF and should be a part of the process involving the JLF with reference to such stressed assets.
7. Reporting to Indian Banks’ Association (IBA) - In terms of the same circular, banks are to report to IBA the details of the recalcitrant CAs, Advocates and Valuers who have committed serious irregularities in course of rendering their professional services. Likewise, the SCs / RCs are to report to IBA the details of such CAs, Advocates and Valuers for placing it on the IBA database of Third Party Entities involved in fraud. However, the SCs/RCs will have to ensure that they follow meticulously the procedural guidelines issued by IBA (Circ. No. RB-II/Fr./Gen/3/1331 dated August 27, 2009) and also give the parties a fair opportunity to explain their position and justify their action before reporting to IBA. If no reply / satisfactory clarification is received from them within one month, the SCs/RCs may report their names to IBA. SCs / RCs should consider this aspect before assigning any work to such parties in future.
8. Additional disclosure

i. At present it is mandatory for the SCs / RCs to disclose in their balance sheet the value of financial assets acquired during the financial year either on its own books or in the books of the trust. In addition, SCs / RCs will have to mandatorily disclose the basis of their valuation if the acquisition value of the assets is more than the Book Value (the value of the assets as declared by the seller bank in the auction). Similarly, SCs / RCs will have to disclose the details of the assets disposed off (either by write off or by realisation) during the year at substantial discount (say more than 20% of valuation as on the previous year end) and the reasons therefor. SCs / RCs are, also, to declare upfront the details of the assets where the value of the SRs has declined substantially below the acquisition value.
ii. SCs / RCs should put up in their website the list of wilful defaulters, (by adopting the process as defined in DBOD Master Circ. No. CID.BC.3/20.16.003/2014-15 dated July 1, 2014) at quarterly intervals. Further, in terms of DNBS (PD-SC/RC).CC.No.23/26.03.001/2010-11 November 25, 2010, each SC / RC is required to become a member of at least one credit information company (CIC) and provide to the CIC periodically accurate data/history of the borrowers. In this case, also, they should furnish the data of wilful defaulters to the CIC in which they are members.

Indirect Tax Ombudsman Guidelines

Came across the Indirect Tax Ombudsman Guidelines 2011 which office has been set up primarily to deal with public grievances against the offices of customs, central excise and service tax department and to facilitate satisfaction and settlement of such complaints.

The offices of the Indirect Tax Ombudsman will be set up at 7 cities i.e. Delhi, Mumbai, Chennai, Kolkata, Lucknow, Bangalore and Ahmedabad.

The matters that can be complained against are :

(a) delay in the issue of refunds or rebate beyond time limits
prescribed by law or under the relevant instructions issued from
time to time by the Central Board of Excise and Customs;
(b) delay in adjudication;
(c) delay in registration of tax payers;
(d) delay in giving effect to Appellate orders;
(e) non adherence to the principle of “ First Come First Served” in sending refunds;
(f) non adherence to the rules prescribed for disbursement of drawback;
(g) non acknowledgement of letters or documents sent to the department;
(h) delay in release of seized books of account and assets, after the proceedings under the Customs, Central Excise and Service Tax statutes in respect of the years for which the books of account or other documents are relevant are completed;
(i) non adherence to prescribed working hours by Customs, Central Excise and Service Tax officials;
(j) unwarranted rude behaviour of Customs, Central Excise and Service Tax officials with assessees;
(k) any other matter relating to violation of the administrative instructions and circulars issued by the Central Board of Excise and Customs in relation to Customs, Central Excise and Service Tax administration.
The procedure for filing the complaint is as follows:

I. Any person, who has a grievance against the Customs, Central Excise & Service Tax Department under the Government of India‟s Department of Revenue, may, himself or through his authorized
representative, if any, make a complaint against the concerned Customs, Central Excise and Service Tax official in writing to the Ombudsman having jurisdiction over that office.

II.
a. The complaint shall be duly signed by the complainant or his authorized representative, if any, and shall clearly state the complainant‟s name and address, the name of the office and official
of the Customs, Central Excise and Service Tax office against whom the complaint is made, the facts giving rise to the complaint supported by documents, if any, relied on by the complainant and the
relief sought from the Ombudsman;
b. A complaint made through electronic means shall also be accepted by the Ombudsman and a print out of such complaint shall be taken on the record of the Ombudsman;

III No complaint to the Ombudsman shall lie unless:-
(a) the complainant had, before making a complaint to the Ombudsman, made a written representation to the Grievance Cell of the concerned Customs, Central Excise and Service Tax office and did not receive any reply within one month from the date of its receipt by the Grievance Cell.
(b) where the complainant had made a complaint in writing to the Grievance Cell of the concerned indirect tax office and he is not satisfied with the reply given to him.
(c) where the complainant had before making a complaint to the Ombudsman, made a written representation to the Customs, Central Excise and Service Tax authority superior to the one complained against and either such authority had rejected the complaint or the complainant had not received any reply within a period of one month after such authority had received his representation or the complainant is not satisfied with the reply given to him by such authority;
(d) the complaint is made not later than one year after the complainant has received the reply of the concerned Customs, Central Excise and Service Tax office to his representation or, in case, where no reply is received, not later than one year and one month after the representation to the Customs, Central Excise and Service Tax Authority;
(e) the complaint is not in respect of the same subject matter which was settled through the Office of the Ombudsman in any previous proceedings whether or not received from the same complainant or
any one or more of the parties concerned with the subject matter; and
(f) the complaint is not frivolous or vexatious in nature.

IV. No Complainant shall be made to the Indirect tax Ombudsman on an issue which has been or is the subject matter of any proceeding in an appeal, revision, reference or writ before any Customs, Central Excise and Service Tax Authority or Appellate Authority or Court.


The proceedings by the Ombudsman shall be summary in nature and the Ombudsman shall not be bound to follow any legal rules of evidence

The Ombudsman shall cause a settlement to be arrived at between the complainant and the official by conciliation or mediation

If the complaint is not settled between the parties by conciliation or mediation within one month of the receipt of the complaint, then the Ombudsman shall pass an award after giving both parties a reasonable opportunity of being heard. The award shall be binding on both the parties but the complainant is required to accept the award within 15 days of passing thereof. It shall be a speaking award. The Ombudsman is authorised to grant a token compensation not exceeding Rs.5,000/- to the complainant.

The department shall within one month from the date of the award comply with the award and intimate compliance with the ombudsman.



 

Stamps on affidavits in Maharashtra

Unable to locate the particular notification on the Maharahstra Government website, it is very difficult to locate notifications on government websites, first thing that NaMo government should do is to make it easy for people to locate their notifications, circulars, etc. for common man. However as per newspaper reports it seems that in Maharashtra stamp papers are not apparently needed for many certificates. I wonder why this was never publicised for 10 long years. Anyway in absence of a copy of the government circular have to rely on the newspaper clipping as per link given here

Apparently stamp papers not needed on affidavits or declarations made for obtaining caste certificate, income certificate, domicile certificate or nationality certificate.

The amendments have been made in the Bombay Stamps Act, 1958. The amendments must have been made via the Mah. Tax Laws (Levy, Amendment and Validation) Act, 2004, but the link here which is a 2004 amendment does not show any amendment for Bombay Stamp act, 1958 unless there has been another amendment in the same year 2004 or the amendments has been made in another year.

Looking at the Bombay Stamp Act Schedule as per this link here again one does not find any amendment in the Schedule in article 4 pertaining to affidavits.

So proceed with caution on this one.