Law on fugitives to Airtel gets nod to raise ₹16,500 cr in debt cover wide-ranging white-collar crimes
NEW DELHI: Bharti Airtel Ltd on Monday said its board has approved a plan to raise as much as ₹16,500 crore by selling nonconvertible debentures and foreign currency bonds to refinance borrowings and pay spectrum-related dues to the government.
“Subject to the approval of the shareholders and other requisite approvals, the board of directors in its meeting held today approved the issuance of nonconvertible debentures (NCDS) of up to ₹10,000 crore on a private placement basis in such tranches and at such rates as may be approved from time to time on cumulative basis along with all NCDS issued by the company; and issuance of foreign currency bonds up to a limit of $1 billion or equivalent in one or more tranches,” the company said in a filing to stock exchanges.
The country’s largest telecom operator has in the last one year announced several measures to trim debt and defend its business under an onslaught from newest entrant Reliance Jio. The Mukesh Ambani-controlled com- pany hit the revenue streams of rivals, first through free offerings and later through cut-price data tariffs. Bharti Airtel’s net profit plunged 39% to ₹306 crore in the three months ended December 31, as India’s telecom regulator more than halved interconnection usage charges, levied by mobile networks handling incoming calls from rival networks, and the pricing war triggered by Jio’s entry continued unabated.
According to a Mumbai-based analyst, the borrowing does not fundamentally change anything for Bharti Airtel, and the company is merely refinancing debt. “Nothing changes. Also, interest rates are rising overall; so, maybe they want to raise funds right now before cost of borrowing goes up further,” this analyst said on the condition of anonymity.
Bharti Airtel’s consolidated net debt also increased to ₹91,714 crore as of December 31 from ₹91,480 crore in the previous quarter. Its net debt excluding the deferred payment liabilities to the department of telecommunications and finance lease stood at ₹44,677 crore which implies that its spectrum related obligations to the telecom department stood close to ₹ 47,037 crore as of December 31.
The company has an immediate upcoming payment to make for bonds worth €1 billion (which it previously issued at 4% annual coupon rate) which are due to mature in 2018. PVS: passenger vehicles; CVS: commercial vehicles
Total PVS are inclusive of cars, utility vehicles and vans
TELCO PLANS TO USE FUNDS TO REFINANCE BORROWINGS AND PAY SPECTRUMRELATED DUES TO THE GOVT
NEW DELHI: The government on Monday introduced a bill in the Lok Sabha seeking punitive powers to target fugitives who have committed white-collar crimes.
Significantly, the brief of the proposed legislation is much wider than the initial draft that had been put out by the government last year.
The provisions of the fugitive economic offenders bill 2018 will extend to not only loan defaulters and fraudsters but also to those individuals who violate laws governing taxes, black money, benami properties, financial sector and corruption.
Earlier this month, the cabinet had cleared a bill that seeks to give the government powers to attach assets of offenders who are outside the country and do not return to India to face prosecution proceedings even after an arrest warrant is issued.
The bill will be applicable for all offences where the monetary value exceeds ₹100 crore.
According to the provisions of the bill, all individuals attempting to elude the Indian legal process from the date of the enactment of the law will be covered.
The confiscation of property will not be limited to those acquired through the proceeds or profits of the crime. The bill also provides for confiscation of benami properties.
The enforcement directorate will be the apex agency that will implement the provisions of the bill. The government has also inserted a clause to protect itself and the officers from any legal suits.
J N Gupta, managing director at Stakeholders Empowerment Services, a proxy advisory firm, welcomed the legislation.
The bill was initially envisaged in budget 2017 to bring to task wilful defaulters such as liquor baron Vijay Mallya.
However, the urgency for its introduction increased after the GST violations Money laundering Benami property transactions
Evasion of tax under foreign black money Act
Violations of the RBI Act, Sebi Act and FCRA Act
recent ₹12,636 crore scam, perpetrated by jewellers Nirav Modi and Mehul Choksi, hit Punjab National Bank.
The government pushed through with tabling the bill in the Lok Sabha despite heavy din and disruptions caused by the opposition. The Lower House ran for a little over 10 minutes before Speaker Sumitra Mahajan adjourned it for the day.
The motion for introducing the bill in the Lok Sabha was moved by minister of state for finance Shiv Pratap Shukla amid disruptions and protests by members from the Telegu Desam Party, YSR Congress Party, Trinamool Congress and the CPI(M) in the well of the House.
Shukla also tabled the Chit Funds (amendment) Bill to amend the 26-year-old Chit Funds Act. Chit funds will need to use the term “fraternity fund” to signify their nature.
Biju Janata Dal’s leader in the Lok Sabha Bhartuhari Mahtab, opposed the introduction of the fugitive economic offenders bill 2018, saying two provisions in the proposed legislation are against fundamental rights guaranteed in the Constitution. “You cannot restrain a person from going to the court of law to get justice. This bill restrains the person to go to the court of law.” Both houses of Parliament adjourned amid disruptions by the opposition.