India is clipping the wings of businessmen it considers a flight risk. Weeks after the nation’s largest bank fraud investigation began, lawmakers, bureaucrats and court officials began drafting tighter rules to prevent citizens fleeing abroad with unpaid dues. A Mumbai court last week ordered top executives of indebted Aircel Ltd., owned by Malaysian billionaire T Ananda Krishnan, from leaving India as the failed mobile-carrier slipped into bankruptcy. The same day, Parliament began considering a bill to confiscate the assets of so-called fugitive economic offenders, while officials ... Read More

In the aftermath of the Rs 129-billion fraud at Punjab National Bank (PNB) involving Nirav Modi and Gitanjali Gems, traders of loose diamonds are now shifting to organised sectoral players with deeper pockets for credit offers to consumers. Since most banks have tightened their lending to diamond merchants and others are in the process of doing so, many medium and small diamond dealers are approaching large players for credit facility within the industry. Early last week, State Bank of India, the country’s largest-public sector bank, announced its decision to tighten collateral demands on b ... Read More

The rupee on Thursday weakened marginally against the US dollar, tracking losses in the Asian currencies market. At 3.30 pm, the local currency was trading at 64.85 a dollar, down 0.05% from its previous close of 64.84. The home currency opened at 64.93 a dollar and touched a high and a low of 64.81 and 64.98 respectively. Yields on 10-year government bonds was at 7.649% compared to Wednesday’s close of 7.685%. Bond yields and prices move in opposite directions. Traders are awaiting trade deficit data for February due later in the day. According to a Bloomberg survey, for February, ... Read More

Punjab National Bank (PNB) has detected another fraud of Rs 9.09 crore at its Brady House branch in Mumbai which is at the centre of the Rs 12,600 crore fraud involving billionaire jeweller Nirav Modi and his uncle, Mehul Choksi. The latest fraud involves a little known company called Chandri Paper and Allied Products Private Limited that was issued two letters of undertaking (LoUs), according to the FIR registered by the Central Bureau of Investigation on March 9 on the complaint of PNB. This is fourth CBI FIR against the Brady House branch. Two branch employees, Gokulnath Shetty, a ret ... Read More

Most creditors of Indias Binani Cement Ltd which is being sold under the countrys insolvency process will support the bid by an investor group backed by Bain Capital, people with knowledge of the matter said. The consortium led by Dalmia Bharat Ltd., which was competing with billionaire Kumar Mangalam Birlas UltraTech Cement Ltd. was chosen by almost all the lenders as the preferred bidder, according to the people. The banks will send their decision to the National Company Law Tribunal for final approval, the people said, asking not to be identified because the information is private. ... Read More

The goods and services tax (GST) implemented by the Narendra Modi government from 1 July last year is one of the most complex with the second highest tax rate in the world among a sample of 115 countries which have a similar indirect tax system, the World Bank said in a report. Indias GST structure has five tax slabs of 0, 5%, 12%, 18%, and 28%. Further, there are several exempted sales and exports are zero rated, which allows exporters to claim refund for taxes paid on inputs. Separately, gold is taxed at 3% rate, precious stones at 0.25%, while alcohol, petroleum products, stamp duties on ... Read More