News & important developments from the most prospective of the New World markets……. India. Our effort is to provide you with the latest and relevant developments that take place in the Indian business, economic and legal environment.

ECONOMIC & LEGAL NEWS

- Duty free import for services with forex earnings of at least Rs 10 lakh (Rs 1 million)…

- Special Economic Zones Scheme…

- EOU Scheme…

- EPCG scheme…

Supreme Court says SFCs can’t sell mortgaged property of sick units: In a major setback to the state finance corporations (SFCs), the Supreme Court has erased their right to unilaterally sell mortgaged properties of a company under winding up proceedings without permission from the concerned Courts…

RBI hauls up Dena Bank for poor show: Dena Bank, is in trouble and the central bank’s prudential regulation has kicked in “prompt corrective action” (PCA), to reverse the deterioration in the bank’s health…

Stop payment on post-dated cheques is an offence: The Supreme Court has ruled that the stop payment of post-dated cheques issued by a person to settle his debt or liability could amount to a penal offence…

Washington state joins BPO ban-wagon: The legislature in the US state of Washington may soon consider a bill which will make outsourcing difficult…

Germany to stop green cards to IT pros: The German government has decided to stop issuing green cards to information technology professionals from July 31, '03…

Govt allows 49% FDI in airport ground-handling: The government has decided to allow 49% FDI in this key area. However, the clearance for foreign investment in this area would be done on a case-to-case basis…

ICICI bank bonds rated 'investment grade': Moody's Investors Service has upgraded the long-term foreign currency bond ratings of ICICI Bank, making it the only Indian entity to figure in 'investment grade'…

BUSINESS NEWS

Lufthansa ordered to pay Rs 5 lakh to passengers for glass pieces in meals: German airlines Lufthansa has been ordered to pay Rs 5 lakh to Indian passengers by a West Bengal consumer court for serving meals which had glass pieces in it…

Air travel to cost more: IA, Jet hike fares by 15%: Domestic airlines have decided to bite the bullet and hike fares by a whopping 15% in a falling market to tide over spiralling fuel costs…

Budget shifts onus of TDS default to employer: Employees will no longer be at fault in case the employer fails to pay tax deducted at source, thanks to an amendment in the current Budget. Instead, the employer will be liable to pay interest and penalty…

Customs duty on film royalty goes: Budget 2003 has clarified that henceforth there would be no custom duty chargeable on the royalty component….

HC turns down Pfizer application: The Bombay High Court has turned down an urgent application by drugmaker Pfizer to vacate an interim stay on the merger of Parke-Davis with Pfizer…

Excise claims Rs 360cr from Fiat for 'low price': Fiat India, faces trouble in the form of huge excise demand. The excise department wants the company to pay duties amounting to Rs 360 crore…

NEW DEVELOPMENTS AND JOINT VENTURES

Federal Bank acquires 26% stake in Atco Healthcare: Federal Bank has acquired over 26% equity stake in Mumbai based Atco Healthcare…

MAX NY Life to start Vadodara Operations: MAX New York Life has tied up with Jaydev Patel, one of New York Life’s most successful agents in the US, to launch the Vadodara operations…

Zodiac buys Noida firm's apparel unit: Mumbai-based Zodiac Clothing has acquired the apparel unit of Noida-based company Niriyat-Sam Apparels for an undisclosed amount…

CB Richard Ellis to buy Insignia for $415 mn: In a $415-million deal, the global real estate services major CB Richard Ellis is set to acquire the Insignia Financial group for $11 per share…

Guardian Life Insurance awards outsourcing contract for $35 mn to Patni: Guardian Life Insurance of the United States announced that it has awarded outsourced software services to Patni Computer Systems with the initial contract valued at $35 million over the next seven years…

Seligman funds acquire 10% in Geometric Soft: Three US-based funds Seligman Global Technology Fund, Seligman Global Technology Portfolio and Seligman Horizon Global Technology Fund, have collectively acquired about 10.2% stake in Mumbai-based Geometric Software Solutions…

FIPB okays Hutchison plan to pick up stake in Usha Tele: The FIPB has approved Hutchison Telecom’s proposal to buy out Telecom Malaysia Berhad’s stake in Kolkata’s cellular service operator Usha Martin Telekom Ltd.