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Delhi High Court Asks Centre to Consider Representation for Linking Property With Aadhaar

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The Delhi High Court has directed the Centre to treat as representation a plea urging the linking of both immovable and movable property documents with citizens’ Aadhaar numbers. The court emphasised that such matters involve policy decisions and the judiciary cannot dictate government actions.

A bench comprising Justices Rajiv Shakdher and Girish Kathpalia specified that the government should address the representation within a period of three months. The petition, filed by lawyer Ashwini Kumar Upadhyay, contends that linking property with Aadhaar would combat corruption, black money generation, and ‘benami’ transactions.

Justice Shakdher remarked, ‘How the courts can get into all this. These are policy decisions, how the courts can tell them to do this. Prima facie, what I don’t understand is that these are the areas we don’t have the complete picture or data, what are the various aspects that may emerge… Best is to let them treat it as a representation and let them decide.’

Upadhyay’s petition stresses the state’s duty to combat corruption and confiscate ‘benami’ properties acquired through illegal means. The court had previously granted time to the ministries of Finance, Law, Housing and Urban Affairs, and Rural Development to submit their responses to the petition.

According to the petition, linking property with Aadhaar could result in a two percent increase in annual growth and cleanse the electoral process dominated by black money and benami transactions. It also argues that ‘benami’ transactions in high-denomination currency contribute to illegal activities such as terrorism, naxalism, gambling, and money laundering.

The petition suggests that linking movable and immovable properties with the owner’s Aadhaar number could significantly curb these issues. However, an affidavit filed by the Delhi government in 2019 clarified that while Aadhaar is accepted as proof of identity for property registration and land mutation, it remains optional, and there is no mandatory provision in the law requiring it.

FM Sitharaman Gives Nod to Setting Up of GST Appellate Tribunal in Indore

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Union Finance Minister Nirmala Sitharaman has given her approval for the establishment of a Goods and Services Tax (GST) Appellate Tribunal in Indore, according to a statement from the Madhya Pradesh government’s Public Relations Department on Thursday.

The initiative was set in motion following a demand made by Indore MP Shankar Lalwani during discussions in the Lok Sabha. Sitharaman, acknowledging the significance of this move, granted approval for the establishment of the GST Appellate Tribunal in Indore.

Indore, with the highest number of taxpayers in Madhya Pradesh, is poised to benefit significantly from this decision. The GST Appellate Tribunal in the city is expected to provide a substantial advantage to hundreds of tax professionals and thousands of businessmen.

In a statement, Lalwani expressed optimism about the swift opening of the GST Appellate Tribunal in Indore, anticipating that it would serve as a crucial resource for resolving GST-related disputes in the region. Currently, businesspersons from Indore and other parts of the state are required to approach the GST Appellate Tribunal in Bhopal to contest decisions made by commercial tax authorities in GST taxation matters.

The move to establish a dedicated tribunal in Indore aligns with the broader goal of enhancing accessibility and efficiency in addressing GST-related concerns. This development aims to streamline the dispute resolution process and reduce the logistical challenges faced by taxpayers and businesses in the region.

While Bhopal already hosts an appellate tribunal, the localised establishment of the GST Appellate Tribunal in Indore is expected to bring relief to the local business community. As the wheels are set in motion, the anticipation is high for the tribunal’s prompt opening, marking a positive stride towards facilitating a more convenient and effective resolution mechanism for GST-related issues in the city.

ICICI Bank Faces ₹ 7.47 cr GST Demand From Maharashtra Department

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In a recent development, ICICI Bank has disclosed to the exchanges that it is confronting a GST demand from the Maharashtra Goods and Services Tax (GST) department, totaling more than ₹ 7.47 crore. This demand encompasses GST and interest claims exceeding ₹ 3 crore each, coupled with a penalty of ₹ 11 lakh.

The GST audit reveals that the bank allegedly made a ‘disallowance of input tax credit (ITC) claimed in GSTR-3B/9, not confirmed in GSTR-2A, and ITC claimed from a registration-cancelled supplier.’ The department specifies a GST demand of ₹ 3,57,91,028, an interest payment of ₹ 3,78,21,814, and a penalty of ₹ 11,17,171, resulting in an overall demand exceeding ₹ 7.47 crore.

ICICI Bank has stated its intention to file an appeal against this order, asserting its commitment to addressing the matter through appropriate legal channels.

This development comes in the wake of notices issued by the Maharashtra GST department to various banks, commencing in December, regarding the taxability of custodial services provided to foreign portfolio investors (FPIs). The department contends that the custodial services offered by SEBI-registered custodian banks do not qualify as zero-rated supplies for export purposes.

The banking sector, including ICICI Bank, has been under scrutiny, with several banks receiving GST notices related to the use of their brand names by branches and subsidiaries. This follows a recent ruling by the Authority for Advanced Rulings (AAR) of Tamil Nadu, Maharashtra, and Karnataka, stating that each entity in a bank with a different GST number is considered a distinct entity for tax purposes.

As ICICI Bank gears up to contest the GST demand, the broader implications of these challenges to the banking sector’s taxation landscape remain to be seen. The banking industry continues to navigate through evolving GST regulations, seeking clarity and resolution on various fronts.

Lok Sabha Passes Controversial Criminal Law Bills Amid Opposition Absence and MP Suspensions

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During a highly debated session, the Lok Sabha, under the leadership of Home Minister Amit Shah, approved three pivotal criminal law bills through a voice vote. The parliamentary atmosphere, marked by the absence of opposition members, who were suspended in an unprecedented number over the preceding days, gave rise to concerns of a chamber functioning as a one-sided echo chamber for the ruling party.

The contentious bills, aimed at replacing colonial-era laws, were vehemently defended by Shah, who asserted their alignment with the “Constitutional spirit” and the “Bharatiya ethos of justice.” The backdrop of heightened security concerns emerged in the wake of a recent breach within the same parliamentary chamber. Opposition MPs, facing suspension for their vocal insistence on Shah addressing the security lapse, elevated the total count of ousted members to 143.

The bills, slated to supplant fundamental legal frameworks such as the Indian Penal Code, the Code of Criminal Procedure, and the Indian Evidence Act, have generated significant controversy. The absence of opposition representation during the debate, except for a handful of members from parties like the BJD, YSRCP, and BSP, raised questions about the democratic process and the genuine consideration of opposing viewpoints. Notably, many non-ruling party members appeared to echo sentiments in favour of the bills, presenting a skewed representation of diverse perspectives.

Security concerns were amplified following the intrusion by two individuals carrying smoke canisters into the Lok Sabha a week prior. Home Minister Shah, however, refrained from addressing this security breach during the recent session. The suspension of additional opposition MPs, including Thomas Chazhikadan and A.M. Arif, further intensified the already contentious parliamentary environment.

No Patents for AI, UK Supreme Court Rules

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In a significant development, the UK Supreme Court made a ruling barring AI from obtaining patents, underscoring that machines, including robots, cannot be recognised as inventors. This pivotal decision materialised in response to Stephen Thaler’s request to designate his AI creation, DABUS, as an inventor. Both the UK and the US rejected this plea. Thaler sought to register DABUS as the inventor of a food container and a flashing light in 2019, but the UK Intellectual Property Office rejected the application, citing the legal constraint that only humans or companies qualify as inventors.

The judge clarified that the absence of a legal provision explicitly designating machines as creators was pivotal to the decision. The UK Intellectual Property Office acknowledged the significance of Thaler’s case, recognising the need to address crucial questions surrounding the legal treatment of creations generated by AI. This issue is also under consideration in the US, where policymakers are deliberating on whether products generated by machines should be entitled to legal protection.

How to Manage the Corpus Effectively After Your PPF Account Matures

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The Public Provident Fund (PPF) has long stood as a cornerstone for long-term savings and tax benefits, offering investors a secure and tax-efficient option under Section 80C of the Income Tax Act. With its minimum tenure of 15 years and the flexibility of limited partial withdrawals, PPF has become a go-to choice for individuals looking to amass a substantial corpus. However, once your PPF account matures and immediate funds aren’t required, there are various investment options available to manage the corpus effectively.

Continuation Without Fresh Deposits

One important aspect to note is that it’s not mandatory to close the PPF account upon maturity. Investors have the option to keep and extend the account without making further deposits. By doing so, they continue to earn applicable interest annually without tax liabilities. Additionally, tax-free withdrawals are permitted from the available balance. However, if the account is continued without fresh deposits for a year or more post-maturity, the option to restart fresh deposits is forfeited.

Extend the Tenure

For those who wish to continue with the PPF account and make further deposits, an extension in blocks of five years is available, which can be further stretched with similar periods. To avail of this option, PPF investors must inform the bank or post office within a year of maturity. Failure to do so results in the inability to make fresh deposits, but the balance will continue to accrue yearly interest.

Reinvesting the Corpus

Another option upon PPF maturity is to close the account and receive the total proceeds in the savings account. If the funds are not immediately needed, it is advisable to reinvest the proceeds in alternative avenues to maximize returns. Depending on the risk profile, investors may consider the following options:

Debt Funds

For individuals with a low to moderate risk appetite, debt-oriented hybrid mutual funds can be considered. These funds typically invest 65-75% of assets in debt, providing stability with an additional push from the equity portion.

Balanced Advantage Funds

Investors with a moderate to high risk profile may opt for dynamic funds that can adjust allocations between debt and equity based on market valuations. These funds have the potential to yield returns of 8-12% in the long run.

Flexi Cap, MultiCap & Multi Asset Funds

For those comfortable with some investment risks, equity funds that diversify investments across different company sizes in the market can be explored. Flexi Cap, MultiCap, and Multi-Asset Funds offer various strategies, combining debt, equity, gold, and real estate for potential higher returns over the long term.

Adhil Shetty, CEO of Bankbazaar.com, emphasizes the importance of sensibly managing the money accumulated through PPF investments. Whether nearing retirement or in the prime of one’s career, making informed decisions about reinvesting can lead to higher returns and the effective use of the hard-earned PPF corpus.

In conclusion, these strategies aim to guide individuals towards earning higher returns and optimizing the use of their PPF corpus, ensuring that the funds do not remain idle and instead grow over time.

Union Home Ministry Revokes Church of North India’s Foreign Funding License

The Union Home Ministry has taken a significant step by revoking the foreign funding license of the Church of North India, citing alleged violations of the Foreign Contribution Regulation Act (FCRA), according to Ministry sources. This move bars the organisation from receiving foreign donations.

For over five decades, this prominent evangelical body has been actively involved in propagating Christianity in India and has historically received substantial donations from the US, UK, Canada, and Europe.

Having amalgamated six different organisations since 1970, including the Church of India, Pakistan, Burma (Myanmar), Ceylon (Sri Lanka), and other Christian entities, the Church of North India oversees churches across North India. Claiming a membership of 22 lakhs, it boasts control over 28 regions through appointed bishops, managing more than 2,200 pastors and 4,500 churches.

Under its umbrella, the Church of North India operates 564 schools and colleges along with 60 nursing and medical colleges. Renowned institutions like the ‘Law Martinier College’ of Lakshmanpuri fall under its jurisdiction, along with several missionary schools in Uttar Pradesh and Uttarakhand.

This action comes amid a controversy involving an alleged land scam worth ₹10,000 crore, where some priests of the Church of North India were accused of forging documents and selling hundreds of acres of land.

Notably, in the past year, several prominent NGOs, including the Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust, Oxfam India, Centre for Policy Research (CPR), and Care India, have faced FCRA license cancellations or suspensions.

The recent revocation of the Church of North India’s foreign funding license by the Union Home Ministry underscores the vital importance of stringent adherence to the regulations laid out in the Foreign Contribution Regulation Act, 2010. Vakilsearch experts emphasise that this development serves as a stark reminder for non-governmental organisations (NGOs) and similar entities receiving foreign contributions to prioritise legal compliance to avoid facing similar repercussions.

Maintaining absolute conformity with FCRA guidelines is imperative for any organisation seeking to operate seamlessly while accepting foreign funds. The complexities of compliance demand thorough understanding and meticulous adherence to legal norms. Vakilsearch stresses the need for NGOs to seek expert legal guidance and support to navigate the intricacies of FCRA regulations effectively.

Expert legal counsel plays a pivotal role in ensuring that NGOs meet the necessary compliance standards, thereby averting potential complications that could arise due to misinterpretation or non-adherence to FCRA guidelines. By proactively engaging legal services, organisations can safeguard themselves against license revocations or suspensions, ensuring uninterrupted operations while receiving foreign contributions.

Rajasthan High Court Sounds Alarm on Youth’s Drug Menace

Expressing deep-seated concerns regarding the surge in the illegal drug trade, especially the widespread availability of tablets and syrups containing psychotropic substances, the Rajasthan High Court has taken a significant step by issuing notices to both the central and state governments. The court has directed critical questions toward unravelling the underlying reasons behind this alarming issue.

In a recent hearing presided over by Justice Farjand Ali, a single bench deferred the consideration of a bail application for an accused involved in a case related to the recovery of a substantial quantity of medicinal drugs. The matter is now scheduled for the next hearing on January 22nd.

The court, acting on its own initiative, highlighted the prevalence of cases involving significant seizures of tablets containing psychotropic substances, leading to multiple arrests. However, dissatisfaction with the current investigative process was voiced, citing its failure to trace the origin of this societal menace.

Quoting Justice Ali’s concerns, ‘The chemists, apothecaries, and medical store owners are keeping large quantities of tablets like tramadol, alprazolam, codeine phosphate syrup, etc., stored, which, on the face of it, do not seem to be proportionate to the requirement of the population of the particular city they are catering to.’

Moreover, the court expressed worry over the impact on society, especially on the younger generation. It posed fundamental questions, questioning the absence of mechanisms to control production and distribution, emphasising the need for regulation of substances similar in nature.

Justice Ali emphasised the urgency, stating, ‘The consumption of such illegal drugs and tablets and pills containing psychotropic substances or substances of like nature has become a run-of-the-mill thing nowadays and it impacts the happiness index of the society as a whole.’

To delve deeper into the issue, the court directed deputy solicitor general Mukesh Rajpurohit and additional advocate general MA Siddiqui to provide detailed responses and suggestions on behalf of the central and state governments, respectively.

Categorising potential contributors to the problem into three types, the court discussed the need for specific mechanisms to curb unaccounted-for quantities of tablets stored by drug dealers. It also explored methods such as preventing sales without prescriptions and proposed innovative solutions, including an online prescription upload system for drugstores.

The high court urged authorities to showcase their efforts in combating the illegal production, sale, and distribution of tablets and syrups containing psychotropic substances. It emphasised the necessity for a comprehensive strategy to address the root causes of this issue, encompassing broader societal implications alongside immediate consequences.

Vakilsearch experts assert, ‘Legal frameworks must adapt swiftly to curb drug trade, safeguarding youth and society’s well-being. Immediate government intervention needed to combat this menace’.  In the wake of the Rajasthan High Court’s stern stance against the surge in illegal drug distribution, obtaining a drug license becomes even more crucial. A valid drug license is not just a legal requirement but a vital tool in monitoring and controlling the sale of pharmaceuticals. Vakilsearch experts stress the importance of adhering to regulatory frameworks by securing proper drug licenses. This not only ensures compliance with the law but also plays a pivotal role in curbing the illicit drug trade, contributing to a safer and more regulated pharmaceutical market.

Finance Ministry Clarifies: No Merger Plans for PSU Banks After Committee Meeting Agenda Update

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In a recent development, the finance ministry has stepped in to clear the air regarding speculations around potential mergers of public sector banks. Contrary to rumours, there are no plans for new mergers. The upcoming parliamentary committee meeting is centred on discussing regulatory aspects post the significant bank mergers that occurred in 2020, not initiating fresh consolidation.

Initial confusion stemmed from a letter mentioning the “post-merger scenario,” which, upon clarification, refers to the regulatory framework after the 2020 mergers. The Reserve Bank of India’s research, released on February 20, sheds light on the positive outcomes of past bank mergers in India. It reveals an overall improvement in financial performance, adding a positive perspective to the recent trend.

India currently has 12 public sector banks, reflecting a substantial reduction from the 27 in 2017. About a decade ago, these banks were grappling with a mountain of bad loans, prompting a series of government measures to restore their financial health. These included capital infusion and mergers, which not only bolstered their capital base but also reduced operational and administrative expenses.

Now, with these banks turning profitable, a new trend has emerged as they actively raise equity capital. Union Bank, Bank of India, Indian Bank, and Bank of Maharashtra have notably succeeded in this endeavour in the current year. This trend is underpinned by their improved valuations and signifies a positive turn in the trajectory of these financial institutions.

Rupee Rises: Early Trade Insights, Foreign Inflows, and Market Trends

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In the early trading hours on Monday, the Indian rupee experienced a gain of 7 paise against the US dollar, reaching a value of 82.96. This upward movement was influenced by a weaker performance of the US dollar in international markets and a consistent inflow of foreign funds, which bolstered investor confidence. Despite these positive factors, the rupee’s growth was somewhat curtailed by a lackluster trend in the domestic equity markets, as noted by forex traders.

At the start of the trading session, the rupee opened 6 paise higher at 82.97 against the US dollar and exhibited a fluctuation range between 82.95 and 83.02. Initial transactions placed the rupee at 82.96 against the US dollar, signifying a gain of 7 paise from its previous closing value of 83.03 on the preceding Friday.

While the dollar index, reflecting the strength of the US dollar against a basket of six currencies, showed a marginal decline of 0.08% at 102.10, Brent crude futures, a key global oil benchmark, saw a rise of 0.41%, reaching USD 76.86 per barrel.

In the domestic equity market, the BSE Sensex observed a 0.11% decline, amounting to 75.89 points, settling at 71,407.86. Simultaneously, the broader NSE Nifty experienced a 0.14% drop, totalling 29.20 points, and settling at 21,427.45.

Foreign Institutional Investors (FIIs) displayed notable activity on Friday, emerging as net buyers in the capital markets. They purchased shares worth Rs 9,239.42 crore, according to exchange data. This reflects a continued positive trend in 2023, where foreign investors have injected nearly Rs 1.5 lakh crore into the Indian equity markets. This influx is driven by optimism surrounding the resilient economic fundamentals of the country, even amid the challenges presented by the global economic landscape. Analysts foresee this positive momentum extending into the year 2024.