Mallya's Force India sale: 13 Indian banks lose Rs 350 cr

Agencies
September 30, 2018

London, Sept 30: One of the two main bidders, keen to acquire embattled Indian businessman Vijay Mallya's Force India Formula One racing team after it went into administration, has claimed that a consortium of 13 Indian banks lost out an estimated 40 million pounds as a result of an "unfair" sales process concluded last month.

Russian fertiliser group Uralkali said that by turning down its higher bid for the company, the administrators had denied the extra funds that would have accrued to the shareholder of Force India – Mallya's Orange India Holdings Sarl – which is subject to a freezing order issued by the UK's High Court in favour of his 13 creditor Indian banks, led by the State Bank of India.

Uralkali launched legal proceedings against administrators FRP Advisory in the High Court in London on Thursday to claim "tens of millions of dollars" in damages over the alleged "prejudicial and unequal treatment" in the bidding process.

The administrators, however, insist they oversaw a "fair and transparent bidding process" which led to the sale of Force India to the Racing Point consortium, led by Canadian billionaire Lawrence Stroll, after it went into administration in July.

"We submitted by far the winning bid for the assets and business, which would have meant most money to the stakeholders and qualitatively recapitalised the team... We have serious concerns as to why the administrators did not use the opportunity to maximise the amounts that could have been paid to creditors and shareholders," said Paul James Ostling, Senior Independent Director of Uralkali, who led the firm's offer for Force India.

"Had he [administrator] taken our bid, because of the freezing order, there would have been millions and millions more available for the ultimate stakeholders, which according to the freezing order are the Indian banks," he said.

Mallya, through Orange India Holdings set up in 2007, owned a 42.5 per cent stake in the Silverstone-based racing team alongside a similar shareholding in the hands of India's Sahara Group.

Describing the 62-year-old UK-based businessman fighting his extradition to India on fraud and money laundering charges amounting to nearly Rs 9,000 crores as a "unique character", Ostling said it had been made clear to Uralkali that the administrator and team's engine partner Mercedes would not accept any deal in which either Mallya or Sahara had any "share or interest or participation".

"Mallya's legal entanglements made it impossible for anyone to do a normal business deal with him to acquire Force India. When you are trying to do a deal with a man who is facing extradition and other charges, it made it extraordinarily difficult," said Ostling, who indicated that Uralkali is still interested in acquiring Force India because it is a good racing team which "punches above its weight".

"It's very sad what's going on with Mr Mallya and Sahara and all their problems. But the team is a wonderful group of people; the drivers, mechanics, business people are an extraordinary group of 400 people who we adore. We wanted to take care of them and support them," Ostling added.

A ruling in Mallya's extradition trial at Westminster Magistrates' Court in London is scheduled for December 10.

A separate UK High Court ruling from May this year upheld a worldwide freezing order against the businessman, with a follow-up enforcement order in June in favour of the consortium of 13 Indian banks to recover estimated funds of around 1.145 billion pounds.

Uralkali, which accounts for 20 per cent of the world's potash production, has been a partner of Force India and one of the sponsors of Formula One Grand Prix Sochi, which takes place in Russia on Sunday.

The company said it had set out an extremely generous offer to acquire Force India's business, assets and goodwill, which included a cash consideration between 101.5 million and 122 million pounds.

"Uralkali had a strong business rationale for acquiring Force India. The company sells its fertilisers to more than 60 countries worldwide, including 20 in which Formula One holds its Grand Prix Championship. Force India would be a highly effective and valuable marketing tool for the business,” the company said.

It said that it had no option but to launch legal proceedings and seek "substantial damages" from the administrators for their "misrepresentation and failure to conduct a process that was proper".

"Having now seen the substance of Uralkali's claim we are ever more confident it will be dismissed at the earliest opportunity," said a statement on behalf of FRP Advisory's joint administrators Geoff Rowley and James Baker.

"As all of the interested parties were aware, our primary statutory duty as administrators was to pursue a rescue of Force India as a going concern.

"All parties had the opportunity to submit a proposal to rescue the company rather than buy its assets. When the final offers came in, Racing Point was the only party to submit a rescue proposal," the statement noted.

While the administrators claim Uralkali failed to submit a rescue offer, the Russian firm accuses the administrators of running an "opaque" process that never made such a criterion for the bidding process clear.

Uralkali now believes "everything will come out in the open" in the course of the matter being heard in the London High Court in coming months.

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Agencies
June 8,2020

New Delhi, Jun 8: Abortion access to around 1.85 million women was compromised across the country due to the nationwide restrictions imposed in response to the COVID-19 outbreak, a study conducted by Ipas Development Foundation (IDF) revealed.

These abortions were compromised at all points of care, including public and private sector facilities and chemist outlets during 68-day lockdown and the first week of Unlock 0.1 period. The study assesses the near-term impact of COVID-19 on abortion access in India since March 25 when the lockdown was imposed across the country with the announcement of Prime Minister Narendra Modi to contain the spread of novel coronavirus of COVID-19 pandemic.

It also highlights the need for a specially designed and integrated recovery plan for improving abortion services at facilities. The study estimates that access to abortion was highly compromised during lockdown 1 and 2 ( between March 25 and May 3) in which around 59 per cent of women seeking an abortion could not access the services.

However, with the Unlock phase or the recovery period as mentioned in the study starting on June 1, the situation is expected to improve - with 33 per cent abortions being compromised in 24 days. A huge number of women could not access safe abortion services during the lockdown, therefore it is extremely important that the healthcare system, public and private, is prepared to meet the needs of these women, the Ipas foundation says.

The model of the study strives to quantify the reduced access to abortions across three different points of care -public health facilities, private health facilities, and chemist outlets, said Vinoj Manning, CEO, Ipas Development Foundation in a statement.

"Majority of public health facilities and their staff are now focused on COVID-19 treatments and closures of private health facilities have compromised the access to safe abortions, which is a time-sensitive procedure."

He said that the study conducted by his foundation was to get a clearer picture of how COVID-19 restrictions have affected women seeking safe abortion services and what are the areas that would need focused efforts in the days to come.

Speaking on the methodology, Dr Sushanta Kumar Banerjee from Ipas Development Foundation said: "We conducted telephonic surveys and consulted with several experts from FOGSI leadership and social marketing organizations like PSI India Private Limited."

"After careful analysis of the data received from them, we have concluded that of the 3.9 million abortions that would have taken place in 3 months, access to around 1.85 million was compromised due to COVID-19 restrictions."

To facilitate the process Ipas Development Foundation has issued some initial recommendations which include: rapid mapping of facilities for first and second trimester abortions, assessing facilities' preparedness especially for second-trimester abortions, improving referral linkage and spread the word about the availability of the service, streamlining the supply chain for medical abortion drugs, and lastly including mechanisms to offset additional travel and out of pocket expenditures.

Ipas Development Foundation will be holding consultations with other partners and key stakeholders to facilitate meaningful collaborations to ensure access to safe abortions and ensure that no woman suffers long-term harm to her health due to lack of services.

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News Network
March 16,2020

New Delhi, Mar 16: Reliance Group Chairman Anil Ambani has been summoned by the ED in connection with its money laundering probe against Yes Bank promoter Rana Kapoor and others, officials said on Monday.

They said Ambani was asked to depose at the Enforcement Directorate office in Mumbai on Monday as his group companies are among the big entities whose loans went bad after borrowing from the crisis-hit bank.

The officials said Ambani, 60, has sought exemption from appearance on some personal grounds and he may be issued a new date.

Ambani's group companies are stated to have taken loans of about Rs 12,800 crore from the bank that turned NPAs.

Finance Minister Nirmala Sitharaman had said in a March 6 press conference that the Anil Ambani Group, Essel, ILFS, DHFL and Vodafone were among the stressed corporates Yes Bank had exposure to.

Officials said promoters of all the big companies who had taken large loans from the beleaguered bank which later turned bad are being summoned for questioning in the case to take investigation forward.

Ambani's statement will be recorded under the Prevention of Money Laundering Act (PMLA) upon deposition, they said.

Kapoor, 62, is at present in ED custody after he was arrested by the central probe agency early this month.

The ED has accused Kapoor, his family members and others of laundering "proceeds of crime" worth Rs 4,300 crore by receiving alleged kickbacks in lieu of extending big loans through their bank that later turned NPA.

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News Network
June 16,2020

New Delhi, Jun 16: Jet fuel or ATF price on Tuesday was hiked by 16.3 per cent while petrol price was increased by 47 paise per litre and that of diesel by a record 93 paise on the back of firming international oil rates.

Aviation turbine fuel (ATF) price was hiked by ₹5,494.5 per kilolitre (kl), or 16.3 per cent, to ₹39,069.87 per kl in the national capital, according to a price notification by state-owned oil marketing companies.

This is the second straight increase in ATF price this month. Rates were hiked by a record 56.5 per cent (₹12,126.75 per kl) on June 1.

Simultaneously, petrol and diesel prices were hiked for the 10th day in a row.

Petrol price in Delhi was hiked to ₹76.73 per litre from ₹76.26, while diesel rates were increased to ₹75.19 a litre from ₹74.26, the price notification said.

In 10 hikes, petrol price has gone up by ₹5.47 per litre and diesel by Rs 5.8 a litre.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The hike in diesel rates is the highest daily increase since the state-owned fuel retailers started daily revision in rates in May 2017.

Hike for 10th consecutive day

Tuesday’s increase in petrol and diesel price marks the 10th straight day of rise in rates since oil companies on June 7 restarted revising prices in line with costs, after ending an 82-day hiatus.

The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) instead of passing on the excise duty hikes to customers adjusted them against the fall in the retail rates that was warranted because of fall in international oil prices.

The June 1 hike in jet fuel price had come after seven consecutive reductions in rates since February. ATF price in Delhi before the reduction cycle began in February was ₹64,323.76 per kilolitre, which got reduced to ₹21,448.62 last month.

Industry officials said the hike was necessitated because benchmark international rates have bounced back from a two-decade low.

While ATF prices are revised on 1st and 16th of every month, petrol and diesel prices are revised on a daily basis.

Oil companies used to revise ATF prices on the first of every month, but adopted fortnightly revisions on March 21 to pass on the benefit of falling international oil prices to airlines.

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