INDIA BUSINESS WORLD - MAY 2004
THE MONTH THAT WAS

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

MANMOHAN SINGH SWORN IN AS PRIME MINISTER: Dr Manmohan Singh, was sworn in as the Prime Minister at the head of a 67-member first-ever Congress-led coalition Government….

FOREIGN COMPANIES CAN'T BE TAXED AT HIGHER RATES: A recent order by the Income-Tax Appellate Tribunal (ITAT) has held that the I-T department cannot levy tax on a foreign company at a rate higher than applicable to a similarly-placed Indian company.

BANKS CAN SELL SECURED ASSETS OF DEFAULTERS: The Supreme Court upheld the constitutional validity of the security enforcement law - which allows banks to take over and dispose of secured assets of defaulters

SUPREME COURT DIRECTS CLOSURE OF INDUSTRIES IN DELHI RESIDENTIAL AREAS: Supreme Court has directed the Delhi Government to close all those industries, except household industries, in residential and non-conforming areas which were set up after August 1, 1990, within five months….

HC ORDER AGAINST NPPA BAILS OUT CIPLA: Allahabad High Court ruled invalid a series of notifications issued by the pharma pricing body from 2000 to 2003 for calculation of retail prices of formulations.

FOREIGN COMPANIES' INDIAN TAX RATE SHOULD BE AT PAR WITH AN INDIAN COMPANY: Foreign Comanies with a presence in India and being taxed on their business profits should have reason to cheer after a recent ruling of the Mumbai Bench of the Income-Tax Appellate Tribunal (the tribunal)….

BUSINESS NEWS

CITICORP TO BUY 100% STAKE IN E-SERVE: US-based banking major Citigroup intends to buy out the 55.6 per cent in e-serve international, for Rs 550 crore.

NO TDS ON 8% SAVINGS BONDS: Banks will not deduct tax at source on the interest and maturity proceeds of the 8% savings (taxable) bonds, 2003 issued by the government.

RELIANCE INFO TO PLACE U.S. $ 1 BILLION WITH PRIVATE EQUITY INVESTORS: Reliance Infocomm is close to placing an estimated $1bn worth of equity with three foreign investors…

KIRAN MAZUMDAR SHAW INDIA'S WEALTHIEST WOMAN: Ms Mazumdar Shaw joined the select league of the likes of Infosys founder Narayana Murty and Nandan Nilekani, with a personal net worth of a whopping Rs 1,887 crore ($428m)…

MURUGAPPAS IN BILLIONAIRE CLUB: The year '03-04 proved quite eventful for the group, with its turnover crossing the $1bn mark. It is estimated at Rs 5,266 crore ($1.2bn), recording an impressive growth of 25% over Rs 4,206 crore in '02-03."

CENTRE REJECTS FDI PLANS IN LIQUOR BUSINESS: Centre decides to "officially" reject all foreign direct investment (FDI) proposals in the liquor business due to lack of a clear policy.

NO TAX FOR NRIS IN UK TILL DISPUTES ARE SETTLED: Non-resident Indians (NRI) based in the UK need not worry about the disputed tax liabilities in India…

SOUTH AFRICA IS NEW GOLD MINE FOR INDIANS: India Inc is sourcing more and more of the precious metal from other sources like South Africa , Australia and Hong Kong …

FIPB DECLINES TO APPROVE UDV'S BOTTLING PLANS: The Foreign Investment Promotion Board (FIPB) has declined to approve a move by liquor major UDV India…

NEW DEVELOPMENTS AND JOINT VENTURES

STERLING PICKS UP TURNER MORRISON'S 65% IN BARISTA: The Sterling group, has bought out the New Delhi-based Turner Morrison group's 65.45% stake in the coffee bar chain Barista Coffee Company for an undisclosed amount…

TIMES GROUP FORMALIZES JOINT VENTURE WITH BBC: The Times Group and BBC Worldwide have signed a formal agreement to set up a joint venture company to publish magazines in India.

TORRENT CLOSE TO BUYING GERMAN FIRM: Torrent Pharmaceuticals, the flagship company of Ahmedabad-based Torrent group, is close to acquiring a German company engaged in generic drugs business, for a consideration of over Rs 300 crore.

GOVT OKAYS 24 FDI PROPOSALS WORTH RS 204 CR: The government on approved 24 foreign direct investment proposals worth Rs 204 crore, including Citicorp and Chrys Capital's plan to invest Rs 126.54 crore in Hyderabad-based IVRCL Infrastructure and Projects Ltd….

DR REDDY'S LABORATORIES ACQUIRES US-BASED TRIGENESIS: Dr Reddy's Laboratories has acquired the US-based Trigenesis Therapeutics at a total investment outlay of $11m. ….

LNM GROUP SIGNS JV TO MINE IRON ORE IN BOSNIA: The LNM Group entered into a joint venture deal with RZR Ljubija for mining and developing iron ore mines in Bosnia Herzegovina