Notifications & Circulars
Press Information Bureau
17.01.2019
MRTP/ Competition Laws
Competition Commission of India decides the Third Lesser Penalty case in respect of cartelisation in Indian Zinc-Carbon Dry Cell Batteries Market
MANU/PIBU/0104/2019
The Competition Commission of India ('CCI') passed a Final Order imposing penalty on Panasonic Energy India Co. Limited ('Panasonic') and Godrej and Boyce Manufacturing Co. Limited ('Godrej') for colluding to fix prices of zinc-carbon dry cell batteries in India. In respect of Panasonic, CCI granted 100 percent reduction in penalty by invoking the provisions of Section 46 of the Competition Act, 2002 ('the Act') read with the Competition Commission of India (Lesser Penalty) Regulations, 2009 ('Lesser Penalty Regulations').
The case was taken-up by CCI suo motu under the provisions of Section 19 of the Act based on the disclosure made by Panasonic under Section 46 of the Act read with the Lesser Penalty Regulations. From the evidence collected in the case, which included an anti-competitive clause in the written agreement entered into between Panasonic and Godrej for supply of batteries, and e-mail communications between the key managerial personnel of the two of them, CCI found existence of a bi-lateral ancillary cartel between Panasonic and Godrej in the market of institutional sales of dry cell batteries. It was found that Panasonic, which had a primary cartel with Eveready Industries India Ltd. and Indo National Limited as established in Suo Motu Case No. 01 of 2016 by CCI, having fore-knowledge about the time of price increase to be affected by this primary cartel, used such fore-knowledge as leverage to negotiate and increase the basic price of the batteries sold by it to Godrej. Further, Panasonic and Godrej, in accordance with the prices of the primary cartel, used to agree on the market price of the batteries being sold by them, so as to maintain price parity in the market.
Based on the above, CCI found that Panasonic and Godrej have indulged in the anti-competitive conduct of price co-ordination, in contravention of the provisions of Section 3 (3) (a) read with Section 3 (1) of the Act. It was observed that such conduct continued from 13.01.2012, when Panasonic and Godrej entered into a written agreement, till 30.11.2014, when Godrej terminated the said agreement.
Considering all the relevant factors, penalty on Panasonic was levied at the rate of 1.5 times of its profit for each year from January 2012 to November 2014 amounting to INR 31.76 crores, and on Godrej at the rate of 4 percent of its turnover for each year from January 2012 to November 2014 amounting to INR 85 lacs. Also, considering the totality of facts and circumstances of the case, penalty leviable on the individual officials of Panasonic and Godrej was computed at the rate of 10 percent of the average of their income for the preceding three years. As to Panasonic, to the officials of Panasonic also, 100 percent reduction in penalty was granted under the provisions of Section 46 of the Act read with the Lesser Penalty Regulations.
Tags : Penalty Cartelisation Dry cell batteries
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Press Information Bureau
17.01.2019
Civil
WAQF properties will be utilized for Socio-Economic Empowerment of the needy sections of the society – Report of Committee on WAQF properties lease rule
MANU/PIBU/0105/2019
Union Minister for Minority Affairs Shri Mukhtar Abbas Naqvi today said here that the Central Government under the leadership of Prime Minister Shri Narendra Modi has successfully been carrying forward the campaign to utilise waqf properties across the country for socio-economic empowerment of the needy sections.
Report of a five-member committee, constituted to review waqf properties lease rule, headed by Justice (Retd) Zakiullah Khan, is presented to Shri Naqvi here.
On the occasion, Shri Naqvi said that under "Pradhan Mantri Jan Vikas Karykram" (PMJVK), the Minority Affairs Ministry, for the first time after the Independence, has constructed schools, colleges, ITIs, skill development centres, multi-purpose community centres "Sadbhav Mandap", "Hunar Hub", hospitals, business centres etc on waqf properties across the country.
Shri Naqvi said that while only 90 districts of the country had been identified for Minority communities' development during the earlier Central Government, while the Central Government has expanded development programmes for Minorities in 308 districts of the country. For the first time after the Independence, a campaign has been started on war-footing to provide basic amenities to ensure educational empowerment of girls belonging to Minority communities in 308 districts across the country.
During the last about four-and-a-half years, under PMJVK, 16 Degree Colleges, 2080 School Buildings, 37,744 Additional Classrooms, 1207 Hostels, 178 Industrial Training Institutes (ITIs), 48 Polytechnics, 39,501 Anganwadi Centres, 3,48,624 lAY(PMAY) houses, 386 Sadbhavna Mandaps, 79 Residential Schools, 508 Market sheds, 17,397 drinking water facilities etc have been constructed by the Modi Government in the Minority concentrated areas.
Shri Naqvi said that 308 districts, 870 blocks, 331 towns and thousands of villages have been covered under "Pradhan Mantri Jan Vikas Karykram". PMJVK has accelerated the utilisation of Waqf properties for the benefit of the society. There are around 5.76 lakh registered waqf properties across the country. The Minister said that he was sure that the recommendations of the committee will ensure that Waqf rules are made easy and effective for better utilisation of Waqf properties and to free these properties, several of these entangled in disputes for several decades, from disputes. He said that the Central Government will take necessary action on the recommendations of the committee after examining the report.
He said that the Central Government is awarding those "Mutawallis" who are performing well in management of waqf properties to ensure utilisation of these properties for betterment of the society especially educational empowerment of girls.
Shri Naqvi said that Central Waqf Council is providing financial help to state waqf boards for digitalisation of waqf records so that state waqf boards can complete digitalisation work within decided timeframe as 90 per cent waqf properties already have been digitised. Remaining waqf properties will also be digitised soon. GIS mapping work of Waqf properties in the country has also been started.
Shri Naqvi said that a one-man "Board of Adjudication" at the Central level has been established under the chairmanship of retired Supreme Court justice to deal with complaints and disputes regarding waqf properties. Three-member tribunals are being established in the states. About 23 states have established these tribunals so far.
WAQF properties will be utilized for Socio-Economic Empowerment of the needy sections of the society, Committee on WAQF properties lease rule presented its report to Union Minister for Minority Affairs Shri Mukhtar Abbas.
Tags : WAQF properties Utilization Empowerment Needy sections
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Press Information Bureau
16.01.2019
Civil
Cabinet approves ex-post facto approval for Agreement on the facilitation of visa arrangements signed between India and Maldives
MANU/PIBU/0098/2019
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its ex-post facto approval to the Agreement on the facilitation of visa arrangements signed between India and Maldives signed in December, 2018.
The Visa Facilitation Agreement signed during the visit of Maldivian President to India aims to further deepen people to people exchanges between the two countries making it easier for Maldivian and India nationals to travel to each others' countries for tourism, medical treatment, education as well as business and employment. The Agreement provides for 90-day visa free travel for tourism, medical and limited business purpose and also provides for easy conversion of such visa free entry to medical visa as well as visas for dependents of students and those pursuing employment in each other's territories.
Background:
India and Maldives share time tested and traditional bonds of friendship. Close people to people contacts constitute the foundation of special bilateral relation between India and Maldives, which received a positive momentum with the visit of Prime Minister, Narendra Modi to Male in November, 2018 for the Inauguration ceremony of the newly elected President of Maldives, Mr. Ibrahim Mohamed Solih, and the subsequent visit of the Maldivian President to India in December, 2018.
Tags : Visa arrangements Approval Agreement
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Press Information Bureau
16.01.2019
Civil
Cabinet approves MoU between India and Australia on the safety in Mines, Testing and Research Station
MANU/PIBU/0100/2019
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval for signing a Memorandum of Understanding (MoU) between Directorate General of Mines Safety (DGMS), Ministry of Labour and Employment, Government of India and Department of Natural Resource Mines and Energy, Queens land Government, Australia through the Safety in Mines, Testing and Research Station (SIMTARS).
Impact:
The MoU will help in establishing a partnership between DGMS and SIMTARS for:
implementation of risk based safety management system, providing training,
organising, conference, seminar and other technical meetings, setting up occupations safety and health academy and national mine disaster centre, and
modernising R&D laboratory of DGMS.
Implementation strategy:
The memorandum of understanding will become operative from the date of signing and remain in effect for three years.
Background:
Mining accident rates in Australia is the lowest in the world. Australia has pioneered in conceptualising and implementing risk based Safety Management Plans for the mining sector using the technique of hazard identification and risk assessment. SIMTARS is known to have exclusive expertise in Mines Safety Management Systems.
Tags : MOU Approval Mines Safety
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Press Information Bureau
16.01.2019
MRTP/ Competition Laws
Competition Commission of India imposes Penalty on Chemists and Druggists Association of Baroda
MANU/PIBU/0099/2019
The Competition Commission of India ('Commission') has found the Chemists and Druggists Association of Baroda ('CDAB') to be in contravention of the provisions of the Competition Act, 2002 ('Act'). A complaint/information was filed with the Monopolies and Restrictive Trade Practices Commission (MRTPC) in 2009 alleging that the CDAB has indulged in restrictive trade practices. The allegations were that the CDAB, through its practices, is limiting and controlling the supply of drugs and medicines in the market by mandating 'No Objection Certificate' ('NOC') prior to appointment of stockists and payment of 'Product Information Service' ('PIS') charges prior to introduction of new products in the market by pharmaceutical companies. Besides, there were allegations that CDAB was fixing the trade margins for the wholesalers/retailers. Subsequently, the case was transferred to the Commission by MRTPC under the provisions of Section 66(6) of the Act. The Commission after forming a prima-facie opinion directed the office of Director General (hereinafter, the 'DG') to conduct investigation into the matter.
Investigation carried-out by the DG established contravention on part of the CDAB. After detailed enquiry, the Commission passed an order dated 05.09.2012 wherein it was found that the CDAB was imposing the requirement of mandatory NOC and was also fixing margins for the wholesalers and retailers by enforcing the norms laid down by AIOCD. The same was found to be in contravention of the provisions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Act. Accordingly, the Commission imposed a monetary penalty, in addition to cease and desist directions, under Section 27 of the Act.
Pursuant to an appeal filed by CDAB, the erstwhile Hon'ble COMPAT, vide its order dated 18.11.2016, set aside the Commission's order dated 05.09.2012 on a procedural issue and remanded the matter back to the Commission for fresh adjudication.
Accordingly, the matter was considered afresh. After allowing CDAB with an opportunity to cross-examine various witnesses, the Commission allowed parties to file their written submissions and conducted a detailed hearing in the matter. Based on the material available on record, the Commission found that the CDAB was indulging in the anti-competitive practice of insisting NOC prior to the appointment of new stockists by pharmaceutical companies and was also fixing/prescribing the trade margins during the relevant time period, in contravention of the provisions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Act.
Accordingly, CDAB was directed to cease and desist from indulging in the aforesaid anti-competitive practice. Further, the Commission imposed a monetary penalty of Rs. 32,724/- calculated at the rate of 10% of the average relevant income of CDAB for the relevant period, under the provisions of Section 27 of the Act.
The detailed Order can be seen at the Commission's website.
Tags : Restrictive trade practices Penalty Imposition
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Reserve Bank of India
16.01.2019
Banking
RBI announces the New External Commercial Borrowings (ECB) Framework
MANU/RPRL/0010/2019
As part of the on-going efforts at rationalising multiple regulations framed under FEMA 1999 over a period of time, the regulations governing all types of borrowing and lending transactions between a person resident in India and a person resident outside India, both in foreign currency and Indian Rupee, have been consolidated and the Revised Regulation FEMA 3 R/2018 has been notified by the Government of India on December 17, 2018.
In line with the above revised regulation, it has now been decided, in consultation with the Government of India, to rationalise the extant framework for ECB and Rupee denominated bonds to further improve the ease of doing business. An A. P. (DIR Series) Circular on the new ECB policy has been issued today incorporating the new framework. Major liberalisation/rationalisation in the new framework are as under:
i. Tracks I and II under the existing framework are merged as "Foreign Currency denominated ECB" and Track III and Rupee Denominated Bonds framework are combined as "Rupee Denominated ECB" to replace the current four-tiered structure. The framework is instrument-neutral.
ii. The list of eligible borrowers has been expanded. All entities eligible to receive foreign direct investment can borrow under the ECB framework.
iii. Any entity who is a resident of a country which is FATF or IOSCO compliant will be treated as a recognised lender. This change increases the lending options and allows various new lenders in ECB space while strengthening the AML/CFT framework.
iv. The minimum average maturity period (MAMP) has been kept at 3 years for all ECBs, irrespective of the amount of borrowing in lieu of various layers of MAMPs as at present, except the borrowers specifically permitted in the circular to borrow for a shorter period.
v. All eligible borrowers can now raise ECBs up to USD 750 million or equivalent per financial year under the automatic route replacing the existing sector wise limits.
vi. Introduction of late submission fee for delay in prescribed reporting under the ECB framework to obviate the need for compounding these contraventions.
Tags : ECB New Framework Announcement
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Ministry of Finance
15.01.2019
Indirect Taxation
Amendment in Notification No. 48/2017-Central Tax dated the 18th October, 2017
MANU/CGST/0001/2019
In exercise of the powers conferred by section 147 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 48/2017-Central Tax dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 1305(E) dated the 18th October, 2017, namely:-
In the said notification,
(i) In the Table, the column number (2) against S. No.1, after the entry, the following proviso shall be inserted, namely: -
"Provided that goods so supplied, when exports have already been made after availing input tax credit on inputs used in manufacture of such exports, shall be used in manufacture and supply of taxable goods (other than nil rated or fully exempted goods) and a certificate to this effect from a chartered accountant is submitted to the jurisdictional commissioner of GST or any other officer authorised by him within 6 months of such supply,;
Provided further that no such certificate shall be required if input tax credit has not been availed on inputs used in manufacture of export goods.";
(ii) In the Explanation against serial number 1 the words "on pre-import basis" shall be omitted.
[F. No. 20/06/17/2018-GST(Pt.I)]
(Dr. Sreeparvathy S. L.)
Under Secretary to the Government of India
Note:- The principal notification No. 48/2017-Central Tax dated 18th October, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 1305(E), dated the 18th October, 2018.
Tags : Notification Amendment Input tax credit
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