Cellular players directed to refund WPC charges
New Delhi: In yet another judgement, the telecom regulator, Telecom Regulatory Authority of India (Trai), directed cellular operators to refund to their customers any amount separately charged towards wireless planning and coordination, on the ground that it was a contravention of the provision of telecommunication tariff order.

The regulator’s order came on an examination made of certain documents of cellular operators, which contained a provision for charging a fee from customers if they opt to change tariff plans in future and also a provision for levying WPC charges. This was done on the basis of complaints from consumer organisations.

In its order, the authority has directed service providers to delete statements in all the documents providing for charging migration fee and WPC charges, besides refunding the subscribers any such amount if charged since the implementation of TTO in May 1999.

The cellular operators are to comply with this order by April 15, 2001.

The tariff order issued by Trai, prohibits service providers from charging a fee when the subscriber migrates from one tariff package to another and says that any move to charge such a fee would be contravention of the provisions of the order.
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HC asks I-T dept to take action against MNC staff
New Delhi: In reply to a public interest litigation, the Delhi High court directed the Income-Tax department to initiate action against India-based employees of foreign companies who had not paid income tax on salaries paid abroad.

According to the petitioners the non-collection of the tax led to a drain of approximately Rs. 1,500 crore to the government.

The court said of the 93 cases listed in the petition neither the penalty had been levied against 41 of them nor proceedings had been dropped. It was seen that penalty had been levied in 46 cases, while five matters were pending for disposal before the tax authorities, it said.
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MSEB begins action against errant officials
Mumbai: Cash-strapped Maharashtra State Electricity Board, under new chairman, Vinay Bansal, has launched an all-out crackdown against errant officials of the board.

The action began by the demotion of a chief engineer to superintending engineer for "showing undue favour to a company in billing and not recovering the pending dues" amounting to Rs. 16.35 lakh, during his stint in Ahmednagar in 1996.

The official has been reverted back to the post of superintending engineer at Kalwa, in neighbouring Thane district.

During the last year, at least 185 officials, including 12 class-I officials have been suspended for charges including their role in power theft, failing to recover pending dues and other malpractices, sources said. This is the first time a senior employee of the board has been penalised.
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GTB-UTI Bank may be called off
Mumbai: In light of the continued controversy on the alleged share price manipulation by Global Trust Bank (GTB) and the subsequent revaluation of its merger proposal with UTI Bank, it is understood that the former is likely to walk out of the merger deal.

The new valuation report, to be prepared by Deloitte, Haskins & Sells, is likely to suggest a share swap ratio lower than 2.25 (nine shares of UTI Bank to four shares of Global Trust Bank) recommended earlier by the report prepared by SBI Capital Markets.

According to industry sources, GTB is unlikely to settle in for a swap ratio which would be at a variance with the original swap ratio.

Though senior officials of both the banks say that the merger is on, the appointment of Deloitte for a revaluation has not been taken well by GTB.

The earlier report prepared by SBI Caps, had taken into account the hidden non-performing assets of GTB as per the inspection report of Reserve Bank of India. Though the net NPAs of GTB in the inspection report was shown to be 1.8 per cent, industry sources say that net NPAs of GTB could be close to four per cent.

Further, GTB had extended huge loans to the diamond industry as well as some big groups in the south which have turned sticky. UTI Bank is also said to be worried about GTB's funded exposure of around Rs 500 crore and Rs 200 crore of non-funded exposure in the capital markets.
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Film producers may get finance from IDBI
Mumbai: In a move that could go a long way in institutionalising film financing and curbing the influence of the underworld, leading finance institution, Industrial Development Bank of India (IDBI) has decided to take the plunge in film financing.

IDBI acting chairman SK Chakravarty said that the institution is prepared to finance films, both in Hindi and in regional languages, and television serials among others by charging a maximum interest of 16 per cent.

The IDBI executive committee has approved the final draft proposal on the funding modalities. The institution is said to go by the track record of the producer and has stated that it will take a lot of precautions before clearing funding proposals.

Only corporate entities, promoted by reputed producers, directors and technicians, are likely to be funded and not those by individuals or proprietors.

Promoters are expected to bring in not less than 30 per cent of the film’s budget and the loan tenure is expected to be for two years. Besides, producers are also expected to offer personal guarantees. The FI is also working out other modalities like quantum of assistance, debt-equity ratio etc.

Leading luminaries of the film industry have hailed this move and believe that this is likely to bring about greater discipline in the industry and production delays will be minimized.
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