Tag: Delhi

CGST officers unearth Rs 34 crore input tax credit fraud involving 7 firms, BFSI News, ET BFSI

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Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have unearthed a case of availment/utilization and passing on of inadmissible input tax credit (ITC) through bogus GST invoices without actual movement of goods of Rs 34 crore.

The seven firms were created in order to generate bogus GST invoices with intent to pass on fraudulent ITC without actual movement of goods and without paying actual GST to the Government, according to a press release.

These entities have generated goods less GST invoices of value Rs 220 crore (approx.) and passed inadmissible ITC amounting to Rs 34 crore (approx.). Rishabh Jain was the mastermind behind running this racket of creating bogus firms and generating/selling bogus GST invoices.

The modus operandi involved creating multiple firms with the intent to avail/utilize & passing on of inadmissible credit. The firms involved in this network are Blue Ocean, Highjack Marketing, Kannha Enterprises, S S Traders, Evernest Enterprises, Gyan Overseas & Viharsh Exporters Pvt. Ltd.

Rishabh Jain tendered his voluntary statement admitting his guilt. He admitted that due to non payment against Overdraft account of Central Bank of India, the business premises were sealed by bankers. Thereafter, he indulged into issuance of bogus GST invoices without actual movement of goods.

Rishabh Jain has knowingly committed offences under Section 132(1)(b) of the CGST Act, 2017 which is cognizable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid. Accordingly, Rishabh Jain has been arrested under Section 132 of the CGST Act on 13.11.2021 and remanded to judicial custody by the duty Metropolitan Magistrate till 26.11.2021.

Further Investigations are in progress. (ANI)



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BOI conducts ‘customer outreach programme’ in Delhi, BFSI News, ET BFSI

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New Delhi [India], November 13 (ANI): With an aim to take mainstream banking services to the people, the Bank of India has been conducting “Customer Outreach Programme”through its branches across the country to include more and more people in the mainstream banking and offer them banking services of their choice.

One first such programme was conducted at Srinagar on October 6, 2021.

According to the official release, BOI conducted another ‘Customer Outreach Programme” at its National Banking Group, New Delhi on November 11 with an attendance of over 100 customers including new and existing customers from all the branches across the New Delhi Zone.

The programme was inaugurated by Managing Director and CEO Atanu Kumar Das by opening New 116 BCs outlets at various locations in Ladakh, Delhi, Punjab and Rajasthan.

Speaking on the occasion, Das highlighted various initiatives taken by the bank under RAM (Retail, Agri and MSME) in recent times for the benefit of its customers.

He informed that the bank has recently slashed ROI for home loans and vehicle loans and has posted a net profit of 1,050.98 crores for the quarter of September 2021 marking a rise of 99.89 per cent.

He said, “BOI is committed fully to the economic revival process.”

He further added that BOI is at the forefront of successfully implementing all the government-sponsored schemes viz. MSME, Mudra, Stand-up, Start-up, PM SVANidhi schemes.

Bank has achieved 33 per cent PMSBY enrolments in PMJDY against DFS Targets 30 per cent for Q2FY21-22 and has won the “APY Annual Award (2020-21)” for overall performance for achieving ‘per APY’ target. The bank is implementing an E-PLATFORM solution for Straight through the process of major Banking products.

Das also distributed sanction letters to the beneficiary customers of various banking products viz. Housing Loan, Vehicle Loan, Stand up and Startup, MSME and PM SVANidhi schemes to the tune of ‘300cr.

It is noteworthy that during the month-long “customer outreach programmes”, the Bank of India has sanctioned ‘5000 cr and disbursed more than 4000 cr in the RAM segment alone. Another 8500 cr disbursal was done in corporate segments.

Bank intends to enrol 1500 BCs in these states during this quarter. Field General Manager Arun Kumar Jain, Zonal Manager, New Delhi Zone Ajay Kumar Panth, other senior officers and respective branch heads along with customers were present during the programme. (ANI)



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Former SBI boss Chaudhary arrested for selling hotel at cheap price after declaring as NPA, BFSI News, ET BFSI

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Former SBI chairman Pratip Chaudhary has been arrested by the Jaisalmer Police from Delhi on the basis of arrest orders issued by the Chief Judicial Magistrate Court in the case of selling a hotel property at a cheap price after declaring it NPA.

Pratip Chaudhary was arrested on Sunday and will be brought to Jaisalmer on Monday. According to information received from the police, Pratip Chaudhary was arrested from his residence in Delhi in a case related to a hotel group in Jaisalmer. It is alleged that the property worth about Rs 200 crore was sold for Rs 25 crore by declaring it Non Performing Asset (NPA).

This property, in fact, was seized in lieu of the loan. According to the police, the hotel group had taken a loan of Rs 24 crore from SBI in 2008 for the construction purpose. At that time, another hotel of the group was running smoothly. After that, when the group could not repay the loan amount, the bank seized both the hotels of the group after considering it as a non-performing asset. At that time, the chairman of the bank was Pratip Chaudhary.

The bank then sold both the hotels to a company for Rs 25 crore at a much lower price than the market rate. On this, the hotel group went to court.

Meanwhile, the buyer company took over it in 2016 and when this property was valued in 2017, its market value was found to be Rs 160 crore. At the same time, after retirement, Pratip Chaudhary joined the same company as a director to which this hotel was sold. At present, the value of these hotels is being estimated at Rs 200 crore.

In this case, the CJM Court of Jaisalmer ordered the arrest of Pratip Chaudhary.



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Delhi govt asks banks to integrate their vehicle loan data with VAHAN portal, BFSI News, ET BFSI

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Delhiites who have taken loans on their vehicles need not visit a bank or the transport department‘s office after October as the city government has asked the banks, financial institutions and NBFCs to integrate their vehicle loan data with the VAHAN portal of the Ministry of Road Transport and Highways. Any applicant who has taken a vehicle loan from any financial institution need not visit the bank or physically submit any document, according to a statement issued by the transport department on Monday.

“No physical documents needed for hypothecation of vehicles in Delhi after October 31,” it said.

Hypothecation is the process whereby the ownership of a vehicle taken on loan and held as collateral by a bank or a lending agency is restored to its buyer.

“We had, in the last month set a strict deadline to take all banks on board for integrating their data with VAHAN to allow termination on hypothecation services and I am happy to see that the process has picked pace and is nearly complete,” Delhi Transport Minister Kailash Gahlot was quoted as saying in the statement.

With this circular, the “no-objection certificate” (NOC) for hypothecation termination from banks and other financial institutions will be received only in the digital format at the VAHAN platform of the National Informatics Centre (NIC), the statement said.

Hypothecation services, including addition, continuation and termination on vehicle loans, are one of the most availed services of the transport department under its “Faceless Services” initiative launched in August.

Private banks HDFC and ICICI together account for 70-80 per cent of all the vehicle loans in Delhi and have already integrated their loan-related data with the VAHAN portal, according to the statement.

Delhiites need not visit a bank for the NOC as they can directly apply for hypothecation removal on the transport department’s website under “Faceless Services”.

Earlier, after the foreclosure of a loan, an applicant had to apply for termination of hypothecation and submit Form 35 and an NOC from the bank within 90 days.

The circular says from November 1, the banks or financial institutions that fail to integrate the data with the VAHAN portal would not be allowed to enter their data of hypothecation into the transport department’s database. PTI VIT RC



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IDFC’s reverse merger with bank faces hurdles, BFSI News, ET BFSI

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Mumbai: IDFC Ltd, the parent of IDFC Bank, on Tuesday indicated to investors that it faced challenges in pursuing a reverse merger with IDFC First Bank.

According to analyst present in the meeting the management said that the parent company’s holds stake in IDFC Mutual Fund and two ventures one with the Delhi government and one with Karnataka Government would need to be exited and there are challenges in exiting these two firms. Shares of IDFC was down 3%, while shares of IDFC First Bank rose 2% following the analyst meet. Although neither had announced merger plans in the past, the same has often been speculated by analyts. There expectation of the holding company merging into the bank got a boost after the Reserve Bank of India in July clarified that IDFC can exit as the promoter of IDFC First Bank.

The central bank had also allowed small finances banks, which came under a holding company structure to reverse merge with their parent. Following this a couple of SFBs merged with the parent.

For IDFC shareholders the merger with the bank is beneficial considering that there have been reports that the company is selling its mutual fund arm. If post-sale the proceeds are distributed to shareholders it would be very tax inefficient as IDFC would be paying capital gains as well as dividend distribution tax. In the event of a merger the sale proceeds need not be distributed but can be infused into the bank as capital. As the bank’s equity is trading at higher multiples compared to the parent there is an upside for IDFC shareholders if there is a merger. However, IDFC First Bank already has enough capital and may not be able to deploy the fund immediately.

During the call IDFC’s non-executive chairman Vinod Rai said that there were challenges in unwinding the complex corporate structure of IDFC. He also said that the corporation had initiated the process of divesting stake in non-core subsidiaries.

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Freezing bank accounts could affect right to life, says Karnataka high court, BFSI News, ET BFSI

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BENGALURU: Freezing of bank accounts will affect the right to life under Article 21 of the Constitution, the high court has said.

Justice Mohammed Nawaz made this observation while allowing a petition filed by Narayana Yadav, a New Delhi-based businessman, and directed CEN police station at Yadgir to intimate banks to defreeze his accounts. The defreezing is subject to the businessman abiding by his commitment to give a bank guarantee for a sum of Rs 3.7 lakh, the court said. Yadav had challenged the June 22, 2020 notice issued by police, directing the manager of Axis Bank to freeze his account and linked account numbers, four in all.

The action was based on a complaint from Ludra Mary, a resident of Shahpur in Yadgir, who alleged that she received an email on May 27, 2020 stating that she had won Rs 48.5 lakh lottery. To get hold of the same, she had to log in to a website. She entered the password and the user name provided and filled up the information requested. In response, she was asked to deposit an amount to the account numbers provided. Until June 10, 2020, a total of Rs 3.7 lakh was deposited in those accounts, but Ludra did not get the money. Ludra approached police, who ordered the freezing of Yadav’s account on the ground that his Axis Bank account had received Rs 99,999 from her.

Yadav claimed he is not involved in the alleged crime and was surprised by the intimation about freezing of his accounts. He said he’s running electronics stores in Delhi and proceeds of his business were transferred to the company account that was maintained at Axis Bank, Dwarka Branch, Delhi, and all transactions are legitimate.

Police defended the action, saying it was necessary to freeze the accounts for probe and also to avoid the petitioner transacting further.



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Delhi govt’s finance dept relaxes norms for departments on expenses above Rs 1 crore, BFSI News, ET BFSI

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NEW DELHI: With the pandemic making a big dent on Delhi government’s revenue, finance department had issued orders to ensure better cash management, including asking all departments to seek its relaxation before incurring expenditure of Rs 1 crore and above. The department, in its recent order, has relaxed this criteria.

In various orders on “expenditure management and rationalisation of expenditure” since the Covid-19 outbreak, different directions have been given on any expenditure of Rs 1 crore and above. In an office memorandum issued on June 17 this year, the finance department’s budget division had directed that all the administrative secretaries and heads of departments to obtain relaxation from the finance department for incurring expenditure of Rs 1 crore or more.

In a recent office memorandum, however, the finance department has allowed seeking relaxation through letters instead of files. In the memorandum, the finance department has stated that it was observed that several proposals were being sent to the department for relaxation, which was required only in cases where the expenditure was of Rs 1 crore and above. “These proposals are in turn examined in the finance department, which takes time and delays the process,” it stated.

In a partial modification of the instructions issued on June 17, the office memorandum issued on August 10 stated that it has now been decided that the administrative departments were not required to send files to the finance department for relaxation. Instead, they would approve the proposals at their level and “send a letter on a weekly basis” to the finance department in a tabulated format.

The orders on expenditure management, however, exclude certain expenditures from the necessary approvals, such as expenditure related to salaries and allowances, medical reimbursement, pension of senior citizens and widows.



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Why RTO under lock and key is good news for you, BFSI News, ET BFSI

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NEW DELHI: On Wednesday morning, chief minister Arvind Kejriwal put a lock on the large gates of the Regional Transport Office (RTO) at IP Depot to open a “faceless services” for Delhiites, thus becoming the first state in the country to provide online facilities on such a large scale.

Starting with three services on a trial basis in February, 33 major transport-related facilities have now become online covering almost 95% of all applications that Delhi government’s transport department receives. Through these services, including an e-sign facility, applicants would be able to save time and money spent on visiting the RTOs.

Delhi has also become the first state to provide online learner’s licence through an AI-based facial recognition software for ensuring maximum security supported by an Aadhaar-based authentication system.

After putting a lock on the New Delhi zone RTO, Kejriwal said there used to be a time when getting a driving licence meant intense discussion on whom to approach for reference or which agent to hire. “People would stand in lines and objections would be made in their application repeatedly. Eventually, they would get tired and get an agent to do it,” he added.

“Today, what we are doing signifies the India of the 21st century. It is a massive step along the direction of technological revolution. Offices and files are now completely digitised. Even the 1076 agent won’t come to your doorstep for any papers. Now, you just have to login to your computer and get all your work done. All services of the transport department are now digital. There is no need to collect documents and stand in lines, no need to take a holiday from work and no need to hire a middleman or agent,” said the CM.

Transport minister Kailash Gahlot said, “Faceless means that now no applicant needs to come to the MLO or officer in any zonal office of the transport department. Whether you are at home, office or cyber cafe, you can do all the things that you used to by going to the office at your convenience.”

Gahlot added that four RTOs — IP Depot, Vasant Vihar, Sarai Kale Khan and Janakpuri — were closed on Wednesday, but helpdesks would be available to ensure a smooth transition. He said 3.5 lakh faceless service requests were received since February 19 and the success rate of approval so far was more than 80% and rejection rate less than 1%.

Meanwhile, the transport department has partnered with ICICI Bank to provide automatic termination of hypothecation on full repayment of loan. At present, vehicle owners have to get a NOC from the bank to get their hypothecation terminated. More banks are expected to come on-board and provide the service soon.

Nearly 32.6 lakh vehicles would benefit from this initiative. The transport department said it had developed a software through NIC for API-based integration of hypothecation data with the Centre’s Vahan software for issuance of automatic online NOC by banks.

“We’re happy to partner with ICICI on this ambitious project. HP addition and termination are one of our most availed of services and its automation, under the leadership of CM Arvind Kejriwal, will set a benchmark in simplifying service delivery. I urge more banks to join hands with us,” Gahlot tweeted.



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After retail, ICICI eyes digital opportunities in corporate sector, BFSI News, ET BFSI

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As retail loans, the mainstay of banks reeling under bad loans, for many years shows pandemic stress, lenders are turning back to corporates.

ICIC Bank, which has been cautious on bulky corporate lending, is looking to increase exposure to companies as it sees them benefiting from the Covid pandemic recovery. Corporate loans constitute 45% of the bank’s Rs 7.33 lakh crore loan book.

ICICI STACK

To tap the corporate loan pie, the company has launched a digital solution, aimed at profiting by offering a wider set of services to high-value clients.

The second-largest private sector lender also said that the corporates are slower in adopting digital solutions as compared to the retail segment, and added that the solution focuses on tech-based new age offerings.

A corporate needs a trusted partner, who will handhold and help manage business holistically.

Its newly launched ‘ICICI STACK will provide digital banking solutions to corporates, their channel partners, employees and other stakeholders.

The bank expects corporate demand also to pick up in the next economic cycle. The bank has doubled the number of current accounts in the last year, The bank has launched a new digital banking product that will provide transaction services, credit facilities, advisory and M&A services for companies and their vendors. It will also offer savings bank accounts to the company employees which will help it build its deposits.

Comprehensive product

The new comprehensive digital offering will help the bank connect with companies their vendors and also employees providing it with valuable information to assess the financial health of their clients besides multiplying opportunities for business.

The bank will offer this new product to 15 industries initially, like information technology, pharmaceuticals, steel and financial services. It has opened eight dedicated branches, five in Mumbai and three around Delhi to serve these customers. Another four branches focussed on these services will be launched later this fiscal.

The lender is not looking at it from a line-by-line perspective and expects the initiative to play into the overall profits.

About 90 per cent of the bank’s retail transactions have moved away from paper-based systems like cheques and termed the adoption of digital alternatives among corporates as “low”. Corporates have doubled up on digital transactions, but have a long way to go on it.

Corporate loan growth

The bank feels India will grow after the ravages of the pandemic and the same will come from both investment and consumption.

In such a scenario the corporate loan demand will also fire up, and added that its corporate loan book is a function of the opportunities in the market.

The bank had witnessed a 13 per cent growth in corporate advances in the March quarter as against 20 per cent on the retail front, and overall domestic loan growth of 18 per cent.

It can be noted that even before the pandemic, corporate loan growth was trailing for banks, which shifted focus to the more resilient retail segment amid asset quality reverses on the large value loans. Some experts say with demand affected, corporates are unlikely to up their investment activities, which typically result in loan growth.



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Millennials are killing it… Don’t LOL, BFSI News, ET BFSI

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– By Tarika Sethia

They are not just young but their choices are too unusual. While the traditional investors are still confused over cryptocurrency, millennials have already found solace in it.

Millennials investing in crypto

Vartika, a 28-year-old girl living in Mayur Vihar, Delhi, has seen hundreds of videos on YouTube which are related to cryptocurrency investments. She has invested in bitcoin and also made some money.

“I understood what cryptocurrency is by watching videos and decided to invest in it,” she said.

Around one crore investors are holding over $ 1 billion of cryptocurrency investments in India and the majority of them are millennials.

About 62% of users at WazirX, India’s biggest cryptocurrency exchange, are below 34 years of age. According to CoinDCX’s report titled ‘Mood of the Nation- 2020’, 71% of respondents below the age of 35 had invested in crypto at least once.

According to the CNBC Millionaire survey, more than 33% of millionaire investors belonging to the millennial generation have over half their wealth in cryptocurrencies. As mainstream and quotidian as it gets, it becomes essential to ask why some Indian millennials are throwing all their savings into a volatile virtual currency that they cannot afford to lose or is it just an alternate investment.

Cryptocurrency and Millennials

All these numbers shed light on the curious eyes of the millennial demography. The notion of crypto being a young person’s asset choice isn’t a farce. However, the question remains, why? While the equity markets were touching fresh lows each day during the Covid lockdown in 2020, cryptocurrencies kept rallying. It was 2020 when many began surfing the crypto wave. Work from home expanded the opportunity to do more than just work and allowed some free time to people leading to huge clamour for ‘meme’ stocks on social media. Fear Of Missing Out (FOMO) has made millennials dash for a chunk of the crypto pie.

Two things are attracting millennials towards cryptocurrencies. First, everything is digital and can be processed seamlessly on the smartphone. Second, it fetches high returns which no other asset class seems to offer.

“I have done my calculations. There are high chances that I will earn far more than what I invest,” said Syed, a 25-year-old intern in a private company.

Living in a digital world, convenience leaves millennials drooling. With copious platforms emerging for crypto trading and each one of them innovating to provide a better user experience, investing and trading has become easier. Brisk KYC to instant crypto purchases, investing in digital currency has become swift and seamless. It is the gift of having everything at your fingertip.

Millennials are not risk-averse

With skyrocketing growth and hard-hitting falls, cryptocurrencies are not for the risk-averse. Millennials are still young enough to afford risking a part of their investment into highly oscillating asset classes, as advised by financial advisors and influencers on Instagram and YouTube. This isn’t very fresh advice but has always lingered in the investment world. However, now it has welcomed a new asset class. This ideology served with the appeal of building wealth faster encourages this bracket to run towards crypto.

Cryptocurrency and regulations

Neither the government nor the regulator has taken any firm stand on cryptocurrencies yet. The crypto exchanges are trying their best to convince the regulator. While India’s central bank has clearly stated that they have issues against cryptocurrency, the Finance Ministry has a different view.

“We want to make sure there is a window available for all kinds of experiments which will have to take place in the crypto world. The world is moving fast with technology. We cannot pretend we don’t want it,” said, Nirmala Sitharaman, Finance Minister.

Cryptocurrency and Global Push
The virtual currency has been dancing over tweets and has even attracted eyeballs of governments from El Salvador to India.

The curiosity about crypto is all over the world. It reached a new high when Tesla founder Elon Musk joined the race. In fact, after a drastic fall, Bitcoin soared this week after Musk’s tweets again favour the crypto.

Moreover, the European Investment Bank (EIB) issued its first digital bond on the Ethereum blockchain, in April this year. Richard Teichmeister, the head of funding at the EIB called the blockchain technology “revolutionary”. Dogecoin that started as a meme currency shot up in value when the tech billionaire Elon Musk tweeted about it.



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