25 July 2013

Walmart's India fallout started with allegations of bribery in Mexico

If not for Mexico, a Gurgaon based transport company might still be plying trucks for BhartiBSE -0.03 % Walmart, the joint venture of the world's largest retailer in India, moving goods from its distribution centre in Palwal, Haryana, to stores across India. A few months ago, the owner of this company expressed his inability to keep costs down in a meeting with Michael Maxwell, the vice-president for distribution and transportation in Bharti Walmart, as he had to pay off traffic policemen for movement of trucks.

This confession led Bharti Walmart to terminate the transporter's services as it violated an American anti-corruption law, which was part of the company's operating procedure all along but had become sacrosanct because of the way its provisions were allegedly flouted by Walmart's Mexican subsidiary and the possible punishments that could follow for its parent in the US.

SBI chief lambasts RBI over Re steps

State Bank of India chairman Pratip Chaudhuri came down heavily on the Reserve Bank of India stating that an interest rate hike would have been less damaging that the central bank's measures to choke liquidity. The statement comes on a day when bond yields shot up and bank stocks were plunged following RBI's second round of measures to drain liquidity to support the rupee.

"The RBI has to check liquidity and we hope it is a shortterm measure. It is always better to hike interest rate than choke liquidity," he said. Speaking to newspersons on the sidelines of the Ficci banking conclave on Wednesday. the SBI chairman pointed out that stability of rupee is the priority of RBI. However, he felt that the objective could be achieved by raising policy rates.

"Interest rate is the proper lever for managing the money market, bond market and Gsec market. Therefore, in order to rein in the prices in the bond market, interest rate which is a much better instrument should have been applied to curb liquidity," he added.

SC issues fresh contempt notices to 2 Sahara companies

The Supreme Court on Wednesday issued fresh contempt notices to two Sahara group companies, which are already facing contempt proceedings for violating a August 31, 2012 order directing them to refund Rs 24,000 crore to investors through market regulator Sebi.

On August 31, a bench of Justices K S Radhakrishnan and J S Khehar had directed Sahara India Real Estate Corporation and Sahara Housing Investment Corporation to refund the amount within three months after finding that they had collected it in violation of rules and regulations. But on December 5, 2012, a bench headed by then Chief Justice Altamas Kabir extended the refund deadline for the Sahara companies after they deposited Rs 5,120 crore and directed them to pay the remaining amount with 15% interest in two installments — one in January 2013 and the second in February. The CJI-headed bench also allowed more time to the Sahara firms to furnish all documents identifying the 2.96 crore investors and with details of refunds.

On Wednesday, Sebi's counsel Arvind Datar said the companies, which were in breach of the August 31 judgment, had also violated the December 5 order. "Saharas have deposited a total of Rs 5,120 crore and willfully and deliberately failed to deposit the first installment of Rs 10,000 crore by the first week of January as per the December 5 order," Sebi said.

GM’s audit reveals emission norms breach

Based on GM's recall of 1.14 lakh Taveras, the transport and heavy industry ministries are undertaking an industry-wide assessment.

Government officials said GM India had informed the transport ministry that its internal audit had pointed to breach of emission norms, allegedly because the vehicle weight and the engine during production did not match with that approved by the agencies.

GM's action will impact a vast majority of the Chevrolet Taveras it has produced in the country as it covers vehicles produced since 2005. The company said it has halted the production and sale of Tavera, although the "issues are not safety-related".

Banks, finance companies hit by RBI's rupee defence

A week-long selloff in the shares of Indian banks and finance companies turned brutal on Wednesday, as investors braced for the central bank's currency-defending measures to further squeeze funding markets and bank profitability.

Sell-side analysts said they were advising clients to be cautious on private sector banks that rely heavily on market funding, after the central bank unveiled a second set of measures on Tuesday to drain cash from Indian money markets and defuse speculation against the rupee.

The rupee hit its highest in a week, rallying further from record lows as it secured a respite, thanks to the Reserve Bank of India's efforts to push up rates.

Virat Kohli, Ambati Rayudu power India to 6-wicket win over Zimbabwe

Virat Kohli cracked a scintillating century as India thrashed minnows Zimbabwe by six wickets in the first cricket one-dayer to take a 1-0 lead in the five match series on Wednesday.

Need to move on in the interest of the game: Gopichand

Doubles specialists Jwala Gutta and Ashwini Ponnappa's outburst over reduction in their base price from $50,000 to $25,000 at the IBL auction has created a furore, but chief coach Pullela Gopichand says it is time to move on in the best interest of the game.

"I think we need to move on. I hope this Jwala-Ashwini issue is resolved soon. IBL is a revolutionary event in the world of badminton. It is benefitting many players and it will improve the popularity of the game in the country. I thank BAI president Akhilesh Das Gupta for taking the initiative to organize this event,"

Afghan, Myanmar women win Magsaysay awards for work amid conflict

The Ramon Magsaysay Award Foundation on Wednesday singled out Afghanistan's Habiba Sarabi, a 57-year-old doctor, for her "bold exercise of leadership to build up a functioning provincial government against great odds."The Foundation also recognised Lahpai Seng Raw from Myanmar, for her "quietly inspiring and inclusive leadership in the midst of deep ethnic divides and prolonged armed conflicts."In addition, the Manila-based foundation honoured Ernesto Domingo, a 76-year-old Filipino doctor who saved millions from life-threatening illness by vaccinating babies against hepatitis B and almost eliminating the chance of their getting infected.

Other winners include Indonesia's independent anti-corruption government body, the Komisi Pemberantasan Korupsi (KPK), which has a 100-percent rate of conviction of corrupt officials and has recovered $80 million in stolen assets.

Nepal's Shakti Samuha, a group that combats human trafficking and helped rebuild the lives of thousands of trafficked and abused women, was another winner.