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Government cautions stakeholders as 348 companies fail to meet requisite criteria for declaration as Nidhi company under Companies Act 2013 and Nidhi Rules 2014

Posted on by Business So Simple in Company Law

Ministry of Corporate Affairs Press Release dated 24th Aug 2021

Under section 406 of the Companies Act, 2013 (CA, 2013) and Nidhi Rules, 2014 (as amended), companies incorporated as Nidhi Companies need to apply to the Central Government in form NDH-4 for declaration as a Nidhi Company.

It has been observed that companies have been applying to the Central Government for declaration as Nidhi under the CA, 2013 but of the 348 number of forms scrutinized upto 24.08.2021 not a single company could satisfy the requisite criteria for it to be declared as a Nidhi Company by the Central Government. There are large number of companies which though functioning as Nidhi Company have not yet applied to the Central Government for declaration as Nidhi Company which is violation of the CA, 2013 and Nidhi Rules, 2014.

Stakeholders are advised to verify the antecedents of the company functioning as a Nidhi company and ensure that the company has been declared as a Nidhi Company by the Central Government before becoming its member and depositing / investing their hard-earned money in such companies.

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Notification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

Posted on by Business So Simple in FEMA

RBI/2021-22/91
DOR.FIN.REC.No.41/03.10.136/2021-22

August 25, 2021

All Housing Finance Companies (HFCs)

Dear Sir/ Madam,

Notification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

Please refer to Para 105 of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 wherein certain criteria have been prescribed for notification of HFCs as ‘Financial Institution’ under Section 2(1)(m)(iv) of the SARFAESI Act.

2. In this connection, Government of India (GoI) has, vide its Gazette Notification No. S.O. 2405(E) dated June 17, 2021 notified the HFCs registered under Section 29A(5) of National Housing Bank Act, 1987 and having assets worth ₹100 crore & above, as ‘Financial Institution’ under Section 2(1)(m)(iv) of SARFAESI Act, 2002. In view of revision of the criteria for notification as ‘Financial Institution’ as per the abovementioned Gazette notification of GoI, the criteria prescribed under Para 105 of the aforesaid Master Direction are withdrawn with immediate effect.

3. The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is being modified accordingly.

Yours faithfully,

(J.P. Sharma)
Chief General Manager

India Trade Promotion Organisationoffers 50% Discount on Rentals to ‘STARTUPs’ in the 21st edition of IISE , Complete ‘MAN-TECH’ solutions at India International Security Expo 2021

Posted on by Business So Simple in Business Consultancy, Entrepreneurship

Ministry of Commerce & Industry Press Release dated Aug 25, 2021

Highlighting ‘Atamnirbhar Bharat’ campaign of the Government, India Trade Promotion Organisation (ITPO) has extended its support to ‘STARTUPS’ in terms of providing 50 per cent rental discount toSTARTUPsin the21stedition of India International Security Expo (IISE) to be organized from 7th-9thOctober,2021 in Hall 5 (GF), IECC Complex at Pragati Maidan, New Delhi. These Startups should be notified by the DPIIT, the Ministry of Commerce and Industry, Government of India.

Facilitating transfer of technology, joint ventures, and system integration, IISE 2021 is being organized as per   preventive measures to contain spread of the pandemic with the support of the Ministry of Home Affairs, Government of India while the co-organizers are CISF and BPR&D.  Significantly, this is the only security expo in South-Asia region which enjoys the support of all States Police Forces, NDMA, CRPF, BSF, ITBP, SSB, Delhi Police, SPG, DFS, etc.

The Expo will cover almost all aspects of security and safety. The event also showcase the new initiatives of the industry of promote manufacturing of the security equipment and gadgets under the ‘Make in India’ campaign.  Featuring a wide range of the latest products, services and innovations of homeland security, cross-spectrum technology-based security capabilities, the event highlights fresh avenues for development of cyber security and skilled task force.

IISE 2021 focuses on new range of gadgets and systems in the field of surveillance, explosive detection and disposal, firefighting, access control, radio communications, training equipment and home and automotive security sectors.  Over 100 leading companies are displaying a wide range of products on Homeland Security, Fire Safety, Traffic Management, Industrial Safety, Disaster Management and Information Security.  These includes: Access Control Systems, Perimeter Protection Devices, CCTV Surveillance Equipment’s& System, Explosive detection & Disposal Equipment, Disaster Management & NBCW Protection Equipment, Equipment for Bank and Hospital Security, Equipment for Forensic Science Laboratories, Fire Alarm & Fire Fighting Equipment, Equipment for Counter Terrorism, Insurgency, Anti-Naxalism and Security Enforcement agencies, Crowd Control Gadgets/Anti-Riot Drill Equipment, Rescue and Relief Equipment, Vehicle and Personnel GPS System, Electronic Gates/Flap Barriers, Bomb Suits/Bomb Blanket, Night Vision Devices, Indoor/outdoor shooting ranges, Drone Technologies, Cyber Security, Health Security, Software & Solutions, Baggage Screening System, Integrated critical Infrastructure Protection and Jammer/Cell Phone Monitoring System, etc. 

The concurrent seminars, delegation visits from within the country and overseas and on-the-spot demonstrations on Women Safety, ‘Selfie- Points’ and ‘Dog Shows’ will be among the added attractions.

Finance Minister unveils 4th edition of Public Sector Bank Reforms Agenda – EASE 4.0 in Mumbai

Posted on by Business So Simple in Financial Prudence

MOF Press release dated 25 Aug 2021

Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman today unveiled the fourth edition of the Public Sector Bank (PSB) Reforms Agenda ‘EASE 4.0’ for 2021-22 – tech-enabled, simplified, and collaborative banking. She unveiled the annual report for the PSB Reforms Agenda EASE 3.0 for 2020-21 and participated in the awards ceremony to felicitate best performing banks on EASE 3.0 Banking Reforms Index.

Shri Pankaj Jain, Additional Secretary, Department of Financial Services, Shri Amit Agrawal, Additional Secretary, Department of Financial Services & Chairman IBA, Shri Rajkiran Rai G., were also present at the event.

SBI, BoB Union Bank of India win  top honous.

State Bank of India, Bank of Baroda and Union Bank of India have won the awards for best performing banks for PSB Reforms EASE 3.0 based on the EASE index.

Indian Bank won the award for the best improvement from the baseline performance. SBI, BoB, Union Bank of India, Punjab National Bank and Canara Bank won the top awards in different themes of the PSB Reforms Agenda EASE 3.0.

Details of EASE 3.0 Awards can be accessed here

   

   

Public Sector Banks have reported healthy profits and have accelerated on technology-driven reforms. These banks have reported a profit of Rs. 31,817 crore in FY21 as compared to a loss of Rs. 26,016 crore in FY20. This is the first year when PSBs have reported profit after five years of losses. Total gross non-performing assets stood at Rs. 6.16 lakh crore as of March 2021 –  a reduction of Rs. 62,000 crore from March 2020 levels.  

Digital lending  

  • Credit@click was a flagship initiative under EASE 3.0. Nearly 4.4 lakh customers have been benefitted through such instantaneous and simplified credit access.
  • PSBs have setup mechanism for customers where they can register loan requests 24X7 through digital channels such as Mobile and Internet banking, SMS, missed call and call centre. In FY21, PSBs have collectively disbursed Rs. 40,819 crore of fresh personal, home and vehicle loans through leads sourced from such digital channels.
  • The top 7 PSBs have built analytics capabilities through the setup of dedicated analytics teams and IT infrastructure to proactively offer loans to its existing customers. Such loan offers were generated using the existing customer transactions data within the banks. In FY21, Rs.  49,777 crore of fresh retail loan disbursements were made by the top 7 PSBs based on these credit offers.
  • PSBs have also extensively used external partnerships and dedicated marketing salesforce network for the sourcing of retail segment and MSME segment loans. Sourcing from such channels has been 9.1 lakh loans in FY21.

Mobile/Internet banking and customer service

  • Nearly 72% of financial transactions happening at PSBs is now happening through digital channels. PSBs are now offering services across call centres, Internet banking, and Mobile banking in 14 regional languages such as Telugu, Marathi, Kannada, Tamil, Malayalam, Gujarati, Bengali, Odia, Kashmiri, Konkani, Hindi, Punjabi, Assamese for the ease of customers.
  • For continual improvement in coverage under financial inclusion initiatives, there was a 13% growth in transactions provided by Bank Mitras in rural areas and 50% growth in enrolments in Micro personal accident insurance in Q4FY21 compared to Q4FY20.

PSBs have recorded a phenomenal growth in their performance over four quarters since the launch of EASE 3.0 Reforms Agenda. The overall score of PSBs increased by 35% between March-2020 and March-2021, with the average EASE index score improving from 44.2 to 59.7 out of 100. Significant progress is seen across six themes of the Reforms Agenda, with the highest improvement seen in the themes of ‘Smart Lending’ and ‘Institutionalising Prudent Banking’.

The next edition of EASE reforms i.e. EASE 4.0 aims to further the agenda of customer-centric digital transformation and deeply embed digital and data into PSBs’ ways of working.

Under EASE 4.0, PSBs would offer:

PSBs have stepped up to support the country during COVID-19 : FM

Finance Minister complimented Public sector banks for continuing to provide uninterrupted service and credit delivery to its customers, despite the Covid pandemic. They have also been at the forefront of extending banking services in the remotest parts of the country, she added.  

From different modes of staffing to remote working, 80,000+ bank branches were operational during COVID-19. Additionally, there has been around two times increase in Aadhaar Enabled Payment System (AEPS) transactions through micro ATMs, and enhanced doorstep banking support by 75,000+ Bank Mitras.

The EASE 4.0 Report can be accessed here.

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DJM/SC/IBA/DR

Follow us on social media: @PIBMumbai  Image result for facebook icon /PIBMumbai    /pibmumbai  pibmumbai@gmail.comRelease Id :-1748922

2 more arrested by DGGI Gurugram Unit for input tax credit fraud (MOF Press Release dated 25 Aug 2021)

Posted on by Business So Simple in GST

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana, has earlier busted a case wherein total fake ITC of  Rs 176 crore has been fraudulently passed on by Sh. Sanjay Goel, Prop of M/s. Redamancy World, and Sh. Deepak Sharma, the de–facto controller of 8 non-existent firms. Accordingly Sh. Sanjay Goel, Prop. of M/s. Redamancy World and Sh. Deepak Sharma has been already arrested by this office, in the matter. On further investigation role of two more key persons, Sh Manish Modi and Sh. Gaurav Agarwal has also been surfaced.

Based on details revealed by further investigation this office has arrested, Sh Manish Modi, Chartered Accountant, resident of Pitam Pura, New Delhi, on charges of creation of running racket of fake firm in order to fraudulently pass on fake Input Tax Credit (ITC), without actual supply of goods or services. It was found that Sh. Manish Modi is managing/controlling  fake firms M/s. Nivaran Enterprises, and M/s Panchwati Enterprises through which he has fraudulently passed on fake ITC to the tune of Rs.  36 crore. Further he has also been found in possession of incriminating evidences indicating many more such firms might be controlled/managed by him for similar purpose, further investigation for same is under way.

Name of Sh. Gaurav Agarwal, Partner of M/s. Agarwal & Company (authorized dealer of ITC) has also emerged as another key person involved in the instant racket of fraud ITC. He has fraudulently passed on fake Input Tax Credit (ITC) amounting to Rs 15 crore (including GST and Cess), thus has been arrested by this office on similar charges. 

Accordingly, Shri Manish Modi and Sh. Gaurav Agarwal were arrested on 23.08.2021 and produced before, Duty MM Delhi, who ordered judicial custody for 14 days. Fake ITC of more than Rs 36 crore and 15 crore, respectively, fraudulently passed on by two persons.

Further investigations in the matter are under progress.

Inviting applications to set up International Trade Financing Services Platform at GIFT IFSC

Posted on by Business So Simple in Entrepreneurship, Financial Prudence

Ministry of Finance Press Release dated 24th July 2021

The International Financial Services Centres Authority (IFSCA) has been established as a unified regulator to develop and regulate financial products, financial services, and financial institutions in the International Financial Services Centres (IFSCs) in India.

IFSCA vide circular dated 9th July 2021 issued the framework for setting up of International Trade Financing Services Platform (“ITFS”) at GIFT International Financial Services Centre (IFSC) for providing Trade Financing Services.

In this regard, IFSCA has invited application from eligible entities, which are desirous of setting up and operating the ITFS, to apply in the prescribed format along with supporting documents to the IFSCA by 15th of September 2021.

IFSCA upon satisfaction in the first instance will grant an in-principle approval to operate in IFSCA Regulatory Sandbox environment for such period as it may consider appropriate, before allowing regular operations.

The ITFS would be an electronic platform for facilitating the trade finance requirements of exporters and importers by providing access to multiple financiers. Once operational, it will play an instrumental role in arranging credit for exporters & importers from global institutions through Factoring, Forfaiting and other trade financing services at competitive cost. The platform is expected to be leveraged by exporters and importers across the world for availing trade finance services, thereby making GIFT IFSC a preferred location for international trade financing.

A copy of the circular dated 23rd August 2021 inviting applications to set up ITFS at GIFT IFSC is available on the website of the authority (www.ifsca.gov.in/circular).

Industry Associations to play a key role in achieving target of $400 billion merchandise exports in 2021-22: Shri Piyush Goyal

Posted on by Business So Simple in Entrepreneurship

Ministry of Commerce & Industry

Industry Associations to play a key role in achieving target of $400 billion merchandise exports in 2021-22: Shri Piyush Goyal


All issues and concerns will be looked into – Shri Goyal

Shri Piyush Goyal engages with Industry Associations to ensure all avail benefit of great growth opportunities.

India developing a SAFE ecosystem i.e. Sustainable, Agile, Futuristic & Efficient to make India a Global Hub of manufacturing: Shri Goyal


Shri Piyush Goyal interacts with the Industry Associates to discuss measures to enhance and increase exportsPosted Date:- Aug 23, 2021

Union Minister of Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal today interacts with the Industry Associates to discuss measures to enhance and increase exports. 

The Union Minister in his addressed said that today’s interaction will create a roadmap to build a vibrant & robust industry ecosystem. Shri Piyush Goyal appreciated the selfless spirit of all Industry Associations during COVID-19. He said that with collective will, agility & synergies we turned a ‘Crisis into an Opportunity,  as the Merchandise exports for first 2 weeks of Aug’21 up by 45% over 2020-21 & up 32% over 2019-20 and  Merchandise exports for 1 Apr – 14 Aug’ 21 up by 71% over 2020-21 and up 23% over 2019-20. 

Shri Goyal further added that it is also, time to reflect on how to achieve future targets. He said that India’s average applied import tariff dropped to 15% in 2020 from 17.6% in 2019, sharpest annual fall in about a decade and a half and our applied tariffs are way below the bound rate of 50.8% (permissible limit under the WTO), with a positive momentum, India is working in mission mode to achieve target of $400 billion merchandise exports in 2021-22. 

Speaking about aim of USD 2 tn contribution of exports by 2030 in economy, Shri Goyal said that economy is on a path of revival and India received the highest ever FDI inflow in 2020-21. It surged by 10% to USD 81.72 bn from USD 74.39 bn (2019-20) and FDI during May’ 21 is USD 12.1 bn i.e. 203% higher than May’20 & 123% higher than May’19. The Minister said that from EoDB to Exports and from Startups to Services, India is taking giant leaps in each sector. 

Speaking about employment, the Minister said that more than 54,000 start-ups were providing ~ 5.5 lakh jobs, and more than 20 lakh jobs will be created by 50,000 new start-ups in the next 5 years. He said, it is time for our Industry to expand our capacity, capability & commitment to develop resilient global supply chains. He further added that our relentless efforts are a testament to the world of our potential and India’s ability to scale and our Industries have truly inculcated spirit of “Sabka Sath, Sabka Vikas, Sabka Viswas, Sabka Prayas”

Speaking about Prime Minister’s clarion call on 6th August, 2021 “Local goes Global: Make in India for the World”, he said Quality, Productivity, & Efficiency, will make our export basket Bigger, Better & Broader and Transforming Industries & Transforming Lives through Initiatives.

Shri Goyal talked about Incentivising Manufacturing also, he said Governments focus will be on PLI worth Rs 1.97 Lakh Cr to 13 sectors in next 5 years, Focus on 24 sectors to attract investment, one-stop digital platform to facilitate businesses through Investment Clearance Cell (ICC), One District One Product under which creating a pool of 739 products from 739 districts, India Industrial Land Bank for providing a GIS-enabled database of industrial areas, he said that Centre expects that Indian Industry should suggest areas for intervention through research, handholding of exporters/manufacturers, deeper engagement with States, greater engagement with Missions, etc.

In his concluding remarks, Shri Goyal said that “The key to success is to focus on goals, not obstacles”.  He said that Indian industry through their conviction & commitment have demonstrated to the world that we can rise to any challenge and conquer it. He further added that Industry Associations will play a key role in developing a SAFE ecosystem i.e. Sustainable, Agile, Futuristic & Efficient to make India a Global Hub of manufacturing and together, we will achieve ‘Sarva Lok Hitam’ i.e. growth of industry with ‘Quality driven productivity’.

Minister of State for Commerce & Industry Shri Som Parkash and Minister of State for Commerce & Industry Smt. Anupriya Patel also addressed the meeting. 

DGFT, DPIIT, The SCALE committee (Steering Committee for Advancing Local Value-Add and Exports), CII, FICCI and ASSOCHAM made presentation on subject “Measures to Increase Exports & Achieve Export Targets of 2021-22”. 

Dr. Pawan Goenka Chairman, MD & CEO, Mahindra & Mahindra Limited,  Shri Dilip Chenoy, Member Secretary General, FICCI, Shri Deepak Sood, Member, Secretary General, ASSOCHAM,  Shri Deepak Bagla Member, CEO, Invest India, Shri Salil Singhal Member, Chairman and MD, PI Industries, Mr Gautam Nair, Chairman, CII Footwear and Leather Accessories Committee, Smt. Manmeet K. Nanda Member (Convener) Joint Secretary, DPIIT , Shri Chandrajit Benerjee Member Director General, CII,  Shri Seshagiri Rao MVS (through VC) Member JMD & Group CFO, JSW Steel,  Shri S. Suresh Kumar Member Joint Secretary, DoC of SCALE committee participated in the meeting. 

Mr Vijay Sharma Director  Federation of Indian Chamber of Commerce & Industry,  Senior Dr Vinod K Verma Vice President, Jindal Stainless Reliance Industries Limited , Vikash Agarwal, President Indian Chamber of Commerce,  Sh. Sanjay Aggarwal, President, Economics PHD Chamber of Commerce & Industry ,  Mr. Arun, President ,The Southern India Chamber of Commerce & Industry , Shri Vinesh Mehta, President,  Federation of Associations of Maharashtra, Mr. Juzar Khorakiwala, President, IMC Chamber of Commerce and Industry (formerly Indian Merchants’ Chamber),   Mr Praveen Khandelwal, Secretary General , Confederation of All India Traders and other Industry Associate,  Mr. Jagdish Fofandi, National President Mr. Elias Sait, Secretary General, The Seafood Exporters Association of India,  Rajiv Mehra, President Mr. Ravi Gosain, Vice President, Indian Association of Tour Operators Maj (Retd.) Nikhil Saini, Director Public Policy EICI Mr. Vasudevan Rajagopalan, Head Customs Compliance DHL , Express Industry Council of India,  Mr.Kiran Rambhia, President Mr.Paresh Thakkar, Hon.Secretary Brihan Mumbai Custom House Agents Associations, Mr. Shankar Shinde, Chairman – Elect Mr. Dushyant Mulani, Honorary Secretary, Federation of Freight Forwarders Associations of India, Mr.Vivek Jalan, Chairperson Mr. Jayanta Chakrabort, Chairperson, Bengal Chamber Commerce Industry Kolkata also attended the meeting. 

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Finance Ministry meeting with Infosys on glitches in e-filing portal of Income Tax Department (MOF Press Release dated 23rd Aug 2021)

Posted on by Business So Simple in Financial Prudence

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman took a meeting with Mr. Salil Parekh, MD & CEO, Infosys here today afternoon to convey the deep disappointment and concerns of the Government and the taxpayers about the continuing glitches in the e-filing portal of the Income Tax Department even after two and half months since its launch, which was also delayed. Smt. Sitharaman sought an explanation from Infosys for the repeated issues faced by taxpayers.

The Ministry of Finance emphasised that there is a need for putting in more resources and efforts on the part of Infosys so that the much delayed delivery of agreed services is ensured.  Mr. Parekh was also sensitised on the difficulties that the taxpayers were facing and the problems that are arising on account of the delays in the functioning of the portal.

The Finance Minister demanded that the issues faced by taxpayers on current functionalities of the portal should be resolved by the team by 15th September, 2021 so that taxpayers and professionals can work seamlessly on the portal.

Mr. Parekh explained that he and his team are doing everything to ensure the smooth functioning of the portal. Further, Mr. Parekh said that over 750 team members are working on this project and Mr. Pravin Rao COO of Infosys, is personally overseeing this project. Mr. Parekh also assured that Infosys is working expeditiously to ensure a glitch-free experience to the taxpayers on the portal.

(MOF Press Release dated 23rd Aug 2021)

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