How can your parents, spouse, children help in saving taxes?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Tax saving plays a significant role in reaching financial goals. When it comes to saving taxes, most people try to maximise use of section 80C limit of income tax Act. However, there are several ways where spouse, parents, sibling and dependents can help an individual save taxes.

Here is a look at how this can be done:

Health insurance for parents

An individual can buy health insurance for parents and save taxes. Investors can avail of income tax exemption under Section 80D, based on the premiums paid on these policies.

“Section 80D of the Income Tax Act, 1961, allows investors to deduct up to Rs 25,000 paid towards the premium of a health insurance policy every year. If your parents are senior citizens then by paying their insurance premiums one can get tax deductions of up to Rs 50,000 a year,” says Archit Gupta, founder & CEO, ClearTax.

Education loan for children

Interest on education loan taken for higher education for kids is also permitted as a deduction, suggests Aarti Raote, Partner, Deloitte India.

The deduction allowed in this case is the total interest part of the EMI paid during the financial year. There is no limit on the maximum amount that is allowed as deduction.

“One just needs to cautious in respect of assets acquired or investments made in the name of spouse or parents as on account of clubbing provisions the income is bound to get taxed in the hands of the tax payer who has invested the funds,” adds Raote.

Gifting money to parents

Gifting money to parents is tax-free, and parents can invest this money in schemes such as Senior Citizens’ Savings Scheme (SCSS) and bank FDs to earn better returns.

“By doing this, a much higher return can be earned from schemes that are exclusively for senior citizens,” says Gupta.

Paying rent to parents

Salaried individuals can also save tax by paying rent to their parents and availing the House Rent Allowance (HRA) exemption benefit. However, the individual should not be the property’s co-owner.

Owning property jointly with spouse

Purchasing property jointly has huge tax benefits among others. If a spouse is included as a co-owner of the property, it magnifies the loan eligibility.

“The ambit of the tax benefits increases for both husband and wife towards interest on borrowed capital and principal repayment under section 80C of the income tax act,” explains Gupta.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DHFL promoters Wadhawans sent to jail in money laundering case

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

A special court here on Wednesday remanded DHFL promoters Kapil and Dheeraj Wadhawan, arrested by the ED in connection with money laundering probe against Yes Bank co-founder Rana Kapoor and others, to 14-day judicial custody.

They were arrested earlier this monthunder the provisions of the Prevention of Money Laundering Act (PMLA).

The Wadhawans brotherswere produced before the special court at the end of their Enforcement Directorate (ED) remand.

The court sent them to jail after no further remand was sought by the central investigating agency.

The duo, also being probed by the ED in another money laundering probe linked to late gangster Iqbal Mirchi, were summoned by the agency multiple times in the Yes Bank case but they had cited the ongoing COVID-19 travel restrictions to skip appearance.

In April, the Wadhawan brothers and their family members had travelled to Mahabaleshwar, a hill station in Satara district of Maharashtra, in violation of the coronavirus-induced lockdown. Five vehicles used by the family were seized by the ED.

As many as 44 companies belonging to 10 large business entities, including Anil Ambani Group, Essel Group, IL&FS, Dewan Housing Finance Corporation Ltd, Cox & Kings and Bharat Infra, among others, reportedly accounted for bad loans worth Rs 34,000 crore of Yes Bank.

The ED has accused Kapoor, his family members and others of laundering “proceeds of crime” worth Rs 4,300 crore by receiving alleged kickbacks in lieu of extending big loans through the bank that later allegedly turned non-performing assets (NPAs).

Kapoor is currently in the ED’s custody.

The Wadhawans are also being probed by the Central Bureau of Investigation (CBI) in connection withthe same case.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lankan PM Mahinda Rajapaksa calls for better economic cooperation with India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Lankan Prime Minister Mahinda Rajapaksa on Wednesday called for closer economic ties with India, saying the bilateral relationship would become further stronger with the addition of new areas of cooperation.

During a meeting with the newly-appointed Indian High Commissioner to Sri Lanka, Gopal Baglay, at his Temple Trees residence, Rajapaksa said Buddhist heritage and links between India and Sri Lanka provide a platform for robust people-to-people engagement and bring them closer.

There has to be more closer economic ties with India. The bilateral relationship would become stronger with the addition of new areas of cooperation, the prime minister was quoted as saying in an official statement during his meeting with Baglay.

The meeting coincided with the 50th anniversary of the election of Prime Minister Rajapaksa to the Sri Lankan Parliament.

During his meeting with the prime minister, Baglay reiterated India’s commitment to stand shoulder-to-shoulder with Sri Lanka in addressing the challenges posed by the coronavirus and in post-COVID economic recovery.

Sri Lanka has so far reported 1,319 cases of coronavirus with 10 deaths.

Towards this end, food security, health security, IT cooperation, tourism exchanges, development cooperation partnership, greater investment flows were identified as priority areas, a statement issued by the Indian High Commission here said.

Baglay during the meeting also conveyed the sincere condolences of the Government of India on the sad and untimely demise of Arumugan Thondaman.

Thondaman, a former minister who played a vital role in Sri Lanka’s citizenship for the Indian-origin people working in the tea plantations in the country in the mid-1980s, died on Tuesday. He was 56.

The meeting came a week after President Gotabaya Rajapaksa and Prime Minister Narendra Modi held a telephonic conversation.

During his conversation with Modi, the president requested India to provide a special USD 1.1 billion currency swap facility to boost the country’s draining foreign exchange reserves in view of the economic slowdown due to the coronavirus pandemic.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

7 deaths reported on-board migrant trains today, Railways says most had underlying conditions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

At least seven deaths on-board migrant special trains were reported on Wednesday, officials said, putting the Railways in the dock over its handling of these non-AC trains.

The national transporter said most of the deceased had pre-existing health conditions.

The seven deaths — four on-board trains travelling to Bihar and three terminating in Uttar Pradesh — happened over the past few days, and were reported on Wednesday.

The death of 35-year-old Uresh Khatoon shook the conscience of the nation and left the Railways scrambling for an explanation. Her toddler’s vain attempt to wake up her from the eternal sleep on a platform in Bihar’s Muzaffarpur was captured in a moving video that went viral on social media Wednesday, opening the floodgates of criticism for the Railways.

The Railways attributed her death to a recent heart surgery, also corroborated by her son.

Another death reported from Muzaffarpur was that of four-and-a-half-year-old son of a migrant from Bihar based in Delhi. The boy died at the railway station here on arrival by a ‘Shramik Special’ train, while his father desperately hunted for some milk he believed would have saved his child.

While his father said he died of heat, Deputy Superintendent of Police, Railway, Ramakant Upadhyay, claimed the boy was ailing for some time and had died before the train reached Muzaffarpur station.

In the state’s Danapur, the body of 70-year-old Basisth Mahato, a heart patient, was taken out of the Mumbai-Darbhanga Shramik Special train. Mahto was returning with his family after treatment in Mumbai and died between Maihar and Satna, the Railways said.

Also, a 58-year-old migrant worker died on-board the Surat-Hajipur Shramik special train on Tuesday evening, Superintendent of Police, Devendra Nath, said.

He has been identified as Bhushan Singh of Saran district in Bihar. The body has been sent for postmortem.

In Uttar Pradesh, a migrant train from Mumbai reached Manduadih, Varanasi, on Wednesday with two dead passengers — physically challenged Dashrath Prajapati (30), and 63-year-old Ram Ratan Gaud.

The Railways said while Prajapati was suffering from a kidney disease, Gaud had “many ailments”.

The body of Sheikh Salim, 45, a resident of Bahraich (UP) was found aboard the Vapi-Deen Dayal Upadhayay Junction Shramik Special train when it reached Sagar station.

The Railways said the body has been kept at the district hospital for postmortem and for testing of coronavirus.

Travelling migrant workers have complained of lack of food and water on-board these special trains and also alleged they are not running on time and are being diverted “at will”.

The Railways has, however, maintained that these trains are running on “pre-scheduled rationalised routes”.

Some trains which should have taken 24 hours to reach to their destinations, arrived in over two days, according to reports, leaving the passengers on-board hungry and desperate.

“A Few deaths have been reported in Shramik special trains. In most of these cases, it is discovered that those who died are old sick people and chronic disease patients, who had actually gone to big cities for medical treatment and could come back only after the Railways started these Shramik Special trains,” said a spokesperson for the Railways.

He also said that 78,11,575 meals and 11,07,7,830 water bottles were given to migrant workers on board these trains till May 26.

However, many passengers have tweeted that they were starving on-board due to longer than anticipated run time of these trains.

The Railways also said that the originating state has to provide food and water to the migrant workers before the start of the journey, but in many places they are being handed out just 200 ml water pouches.

To deal with the issue, the Railways through an order on May 22, empowered the General Managers of each zone to spend up to Rs 1 lakh on each Shramik Special train to arrange meals for the workers.

The Railways has also instructed zones to ensure that in no case meals to the trains should be skipped.

If, it has to be skipped due to operational exigencies, officials have been asked to first ensure alternative arrangements. “Find innovative solutions to problems”.

A senior official told PTI that due to the social-distancing norms, food and water is placed at the gate of the coaches, they are not distributed by anyone on-board and the workers are expected to share it among themselves.

In case of any complaints, the meals are provided again at the next station where it is available.

Officials said this arrangement could have failed as migrant workers have been hungry or with no food for days.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Number of PPE body coveralls manufactured in India tops 1-crore mark, says govt

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The total number of PPE body coveralls produced in India crossed the 1-crore mark on Wednesday, according to the textiles ministry.

“Under the able leadership of Hon’ble Prime Minister @narendramodi Ji total number of PPE Coveralls produced in India has crossed 1 crore today. A significant landmark towards the vision of #AatmaNirbharBharat,” the Ministry of Textiles tweeted.

India has become the world’s second largest manufacturer of personal protective equipment (PPE) body coveralls within a short time span of two months, the government had said last week.

China is the world’s leading producer of PPE body coveralls, crucial to safeguard against COVID-19 infection.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID impact: Boeing cutting more than 12,000 US jobs with thousands more planned

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Boeing Co said Wednesday it was eliminating more than 12,000 U.S. jobs, including involuntary layoffs of 6,770 U.S. workers as the largest American planemaker restructures in the face of the coronavirus pandemic.

Boeing also disclosed it plans “several thousand remaining layoffs” in the next few months but did not say where those would take place.

The company announced in April it would cut 10% of its worldwide workforce of 160,000 by the end of 2020. Boeing said Wednesday it had approved 5,520 U.S. employees to take voluntary layoffs and they will leave Boeing in the coming weeks. Boeing also disclosed it is notifying 6,770 workers this week of involuntary layoffs.

Boeing is moving to cut costs as it faces a drop in airplane demand from the coronavirus pandemic.

Boeing Chief Executive Dave Calhoun told employees in an email the “pandemic’s devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices. … I wish there were some other way.”

Boeing shares rose 0.7% in mid-day trading to $145.76.

In April, Boeing recorded zero orders for the second time this year and customers canceled another 108 orders for its grounded 737 MAX plane, compounding its worst start to a year since 1962.

The pandemic worsened a crisis for the company in which the 737 MAX was grounded last year after the second of two fatal crashes.

Last month, Boeing raised $25 billion in a bond offering that allowed the company avoid taking government aid.

The job cuts include more than 9,800 employees in Washington State. Boeing said Wednesday the “several thousand remaining layoffs will come in additional tranches over the next few months.”

Boeing said it expects to resume 737 MAX deliveries in the third quarter following regulatory approvals, with production re-starting at low rates in the second quarter before gradually increasing to 31 per month during 2021.

“We’re moving forward with our plan to restart 737 MAX production in Renton, Washington,” Calhoun said in his email.

Reuters reported in April 737 MAX approval is not expected until at least August.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maharashtra govt says fake notifications on salons and parks doing the rounds; no change in lockdown rules so far

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Maharashtra government has clarified that there are three fake notifications doing the rounds online that claim the state has relaxed various rules lockdown guidelines surrounding salons, parks and other facilities. The state government has said that no such orders have been issued.

The fake notification claims, “Walking, jogging, running, cycling and other individual physical exercises will be permitted on public open spaces like gardens, playgrounds, footpaths, promenades etc. between 5 am to 7 pm. People are actively encouraged to undertake cycling as a form of physical exercise as it automatically ensures social distancing.”

सोशल मीडियावर व्हायरल झालेल्या या अधिसूचना राज्य शासनाने जारी केलेल्या नाहीत.
It is observed that above copies of ‘notifications’ are in circulation in social media. The State Govt clarifies that these notifications are not issued by the Govt of #Maharashtra. pic.twitter.com/OqpA4VBtw4

— MAHARASHTRA DGIPR (@MahaDGIPR) May 27, 2020

It purported document has a set of fake guidelines for salons and beauty parlours to follow, which state:

“For salons and beauty parlours, the government guidelines mentioned below need to be followed.
1. Such establishments will be allowed to function from 9am-5 pm.
2. Such businesses will be permitted to be carried out only by duly authorised/licensed establishments with proper infrastructure (building/workspace/equipment).
3. No walk-in service should be available. Only customers with prior appointments shall be allowed.
4. Only essential services (haircut, dyeing hair, waxing, threading) may be allowed. Nonessential include shaving, facial, cleansing, bleaching and other skin related services will be permitted in due course.
5. Restricted entry (50 percent of the strength). Accordingly, alternate chairs and cubicles will be used.
6. Such establishments shall be using infra-red thermometers for staff and customers. Any person showing symptoms should not be allowed in the establishment.
7. Customers and employees must wear masks at all times. Further employees must wear protective gear including gloves and aprons.
8. Hand sanitizers should be made available at entry points (foot operated preferably).
9. All chairs/cubicles will be sanitized with 0.1% sodium hypochlorite after each use/service.
10. Disposable towels/napkins must be used on each customer.
11. Non disposable equipment should be sanitized and sterilized after each use and disposable equipment must be collected separately and should be handed over to the municipality for disposal.
12. All common areas like resting areas, lounge, floors etc. must be sanitized at least 5 times a day.
13. Carpets and floor area should be cleaned as frequently as possible.
14. Every client must be given the choice to avail services, even at a greater price, with disposable instruments like scissors, combs etc. which customer can take away with them.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ramdev’s Patanjali to begin Ayurvedic medicine trials on COVID-19 patients, it raises eyebrows

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

A proposal by Baba Ramdev’s Patanjali Research Foundation Trust to begin trials of its Ayurvedic medicines on COVID-19 patients has prompted Congress leaders to seek a probe into the district administration’s response.

Former chief minister Digvijaya Singh said he was surprised after reading reports which claimed that Indore District Collector Manish Singh gave the nod to Patanjali without the approval of the country’s Drug Controller.

Manish Singh rubbished claims that he had approved Patanjali’s proposal. “Confusion is being spread in this regard,” the bureaucrat said.

“I am sure Collector Indore was blissfully unaware of these guidelines. I would request him and GOMP not to treat citizens of Indore as Guinea Pigs to oblige some one close to The Powers That Be. The orders should immediately be withdrawn,” Digvijaya Singh tweeted on May 23.

“There are Guidelines for approval of new drug, and this guideline is based on regulatory requirement for drug approval in India as prescribed under Drugs and Cosmetic Act and Rules made there under and its various amendments,” he added.

The Congress veteran also said there is a certain legal protocol under the Drug Controller General of India only after which a drug can be tested on humans.

“Has Patanjali taken approval for its products from DCGI? If not then have they not violated the Law? Shouldnt they be held responsible and be prosecuted?

“When I checked with senior officials of GOMP I was told that GOMP has not given any permission to Patanjali to give Drugs for trials to Corona patients in Indore. I spoke to Collector Indore and he promised to look into it,” he tweeted.

State Congress spokesperson Neelabh Shukla sought a high-level probe into the matter.

“The district administration has no authority to either sanction or scrap any proposal for clinical trials on COVID-19 patients,” Shukla said.

An official said the May 19 proposal by the Haridwar- based organisation was to test the “effect on resistance, boosting immunity and curative ability” of the drug.

Some activists and local Congress leaders claimed the district administration gave its nod to the Patanjali proposal in a hush-hush manner, but withdrew it after reports about it appeared in a section of media.

A day after Patanjali submitted the proposal, Ramdev told Madhya Pradesh Chief Minister Shivraj Singh Chouhan that Ayurvedic medicines gave “good results” on virus patients.

Anurag Varshney, vice president of the Patanjali Research Institute, had sought permission from the Mahatma Gandhi Memorial Medical College Dean Jyoti Bindal to conduct the controlled clinical trials.

Bindal said she forwarded Patanjalis proposal to principal secretary of the state medical education department for clearance. It has not been cleared so far, she added.

An NGO, Jan Swasthya Abhiyan Madhya Pradesh, wrote to the Union Ministry of Health and Family Welfare, Drug Controller General of India, Indian Council of Medical Research and AYUSH Ministry demanding to look into the alleged administrative sanction to Patanjali’s proposal.

“Media reports said the district Collector approved the proposal for clinical trial of some Ayurvedic medicines of the Patanjali group on COVID-19 patients but later quashed it,” the NGO’s co-convenor Amulya Nidhi said.

Patanjali Ayurved’s Managing Director Acharya Balkrishna told PTI that there is a need to understand the company does not want to undertake any new experiment or trial of Ayurvedic treatment regime on COVID-19 patients in Indore.

“Our proposed treatment regime for this pandemic is based on traditional Ayurvedic medicines already being used by millions of people. We want to prove this treatment methodology globally through scientific evidence,” he said.

“We are going by the book for documentation of this scientific process. Multinational companies and other vested interests are behind raking up a controversy unnecessarily.

They don’t want to see Ayurvedic advancements,” he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Brokerages skeptical of NHAI’s stiff target; caution against labour crisis and other challenges

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The National Highways Authority of India (NHAI) has set itself a stiff target. A report by Nirmal Bang, which has been put out after consultations with NHAI officials, projects that 6,000 km of road construction might be awarded and constructed versus 4,000 km of construction and 3,200 km of awarding in FY20.

However, the brokerage report reasons that the target is too steep given the challenges faced by the authority. They believe that 4,000 km of construction and 4,500 km of awarding would be a more realistic target.

Antique Broking believes that the set target does not underscore the changing trends with respect to lack of labour at sites, delay in government notification in actual policy which can impact fund and non-fund-based limits for contractors; and structural risks in HAM model and nature of arbitral tribunals.

A recent report from Antique Broking indicates that limited participation from private players is expected in FY21 as the cost of debt to fund HAM projects remains higher than the project IRR (internal rate of return). The report also raises concerns over the negative carry causing a cascading impact on the invested value across the industry.

Under the HAM model, the government funds 40 percent of the project cost whereas the concessionaire funds the remaining 60 percent. The authority pays interest on this 60 percent on a six-monthly basis. The interest is calculated as bank rate (policy rate) + 300 bps. As the policy rates have come down much sharply compared to the borrowing cost of the concessionaires, this has put an additional burden on the concessionaires. To boost private participation and revive the BOT model, NHAI has sought stakeholders’ comments on the amendments made in the concession agreement.

The concessionaries have also been demanding faster land acquisitions and quicker arbitration proceedings. To reduce the build-up of arbitration cases, the NHAI has asked its project managers to cancel portions of the proposed contracts in case of hurdles in the land acquisition process.  Land acquisition for road projects has come to a grinding halt over the last couple of months owing to COVID-19 lockdown. It’s important to note that almost 30 percent of NHAI’s expenditure goes towards land acquisition and the same has contributed to burgeoning NHAI’s debt.

The total debt of the NHAI went up by nearly 9.5 times to Rs 2.28 lakh crore in February this year, from Rs 24,188 crore as on March 31, 2015. What makes matters worse is the weak financial situation of the state governments which bear a part of the acquisition cost. State-led CAPEX accounts for around half of the total government-driven CAPEX in the country. Over the last three years, it grew by 16 percent to Rs 5.11 lakh crore in FY2020 (RE) from Rs3.73 lakh crore in FY2018, says ICRA.

According to the agency, budget cuts by some states will curtail the allocations to infrastructure spend and thereby slow down the execution as well as new project awarding activity and elongate the receivable cycle for construction contractors.

While NHAI plans to borrow Rs 55,000 – 65,000 crore in FY21, the agency’s monetisation plans have taken a back seat given lack of interest from institutional investors.  The TOT timeline has been extended to July 2020 and the INVIT plans have also been deferred given uncertainty over traffic growth.

While the government has announced measures like an extension of contracts, moratorium, the definition of force majeure, etc., there remain many execution challenges for the infrastructure sector. A government notified policy to clear the ambiguity is expected to be rolled out over the next couple of months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NCLT approves IL&FS stake sale in GIFTCL to Gujarat govt

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The National Company Law Tribunal has approved crisis-hit IL&FS to selling its stake in Gujarat International Finance Tec-City Company (GIFTCL) to the Gujarat government. IL&FS has 50 per cent stake in GIFTC.

The Gujarat government has agreed to pay a positive equity value of 100 per cent of the IL&FS stake in GIFTCL, by which, the positive equity value of over Rs 32.70 crore will come to IL&FS, according to an NCLT order.

The order said that IL&FS had sought that an amount of Rs 61.84 lakh is excluded as resolution process costs incurred for meeting various expenditures, other applicable taxes from the sale proceeds of the applicant’s shareholding in GIFTCL to the Gujarat government.

The NCLT also permitted IL&FS to withdraw a sum of Rs 3 crore from the escrow account opened to keep sale consideration for meeting the additional process resolution costs that may arise, after approval by the Board of Directors appointed by the tribunal.

“In view of the relief sought by the applicant, this bench hereby approved that sale of shares of GIFTCL held by IL&FS to Governor of State of Gujarat/Gujarat Urban Development Company Limited shall be free and clear from all encumbrances, liens, security interest and third party claims (including any statutory or tax claims) upon receipt of sale consideration from GUDC,” it said.

That sale consideration payable to IL&FS excluding resolution process costs will be credited into a designated Escrow Account intimated by the applicant and such funds will be maintained as interest bearing fixed deposits, the order added.

The National Company Law Appellate Tribunal (NCLAT) had permitted green entities to continue in accordance with the resolution framework subject to the supervision of the Justice (Retd.) D K Jain.

Since GIFTCL has been classified as a “Green” entity, IL&FS commenced the resolution process of GIFTCL.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow