amnesty for taxpayers

Advisory from GST Department

purchase of acid on e-com platforms

The Central Consumer Protection Authority (CCPA), headed by Chief Commissioner, Mrs. Nidhi Khare, has issued Safety Notice under Section 18(2)(j) of the Consumer Protection Act, 2019 (‘the Act’) to alert consumers against purchase of acid on e-commerce platforms.

CCPA, being the watchdog of consumer interest in India, has come across the sale of highly corrosive acids on e-commerce platforms. Availability of hazardous acids in such a freewheeling and easily accessible manner can be dangerous and unsafe for consumers and to public at large.

Consumer safety is among the preambular objectives of the Act. ‘Consumer rights’ as defined under Section 2(9) of the Act, include the right to be protected against the marketing of goods, products or services which are hazardous to life and property and the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices.

It may be mentioned that the Hon’ble Supreme Court of India in the case of Laxmi vs. Union of India [W.P. (Crl.) No. 129 of 2006], has issued directions which are required to be complied, with respect to sale of acid and other corrosive substances. Pursuant to the directions, the Ministry of Home Affairs (MHA) has issued guidelines dated 30^th August, 2013 to all States/UTs on ‘Measures to be taken to prevent acid attacks on people and for treatment and rehabilitation of survivors’ which inter alia notes the following actions to regulate the sale of acid  –

1. Banning over the counter sale of acid/corrosives unless the seller maintains a logbook/register recording the sale of acid which will contain the details of the person(s) to whom acid(s) is/are sold and the quantity sold. The log/register shall also contain the address of the person to whom it is sold.
2. A sale will be made only when the buyer produces a photo ID issued by the Government which also has the address of the person and proves that he/she is above 18 years of age.
3. The logbook/register should also specify the reason/purpose for procuring acid.
4. All stocks of acid must be declared by the seller with the concerned Sub-Divisional Magistrate (SDM) within 15 days and in case of undeclared stock of acid, it will be open to the concerned SDM to confiscate the stock and suitably impose a fine on such seller up to Rs. 50,000/-
5. The concerned SDM may impose a fine up to Rs.50,000/- on any person who commits breach of any of the above directions. Educational institutions, research laboratories, hospitals, Government Departments and the departments of Public Sector Undertakings, who are required to keep and store acid/corrosive shall maintain a register of usage of acid and the same shall be filed with the concerned SDM.
6. A person shall be made accountable for the possession and safe keeping of acid in their premises. The acid shall be stored under the supervision of this person and there shall be compulsory checking of the students/ personnel leaving the laboratories/place of storage where acid is used.

It has been observed that neither there is any requirement to produce Photo ID issued by the Government, nor there is any manner in which the purpose of buying the acid is recorded by the e-commerce platforms before placing an order. Further, there is no actual mechanism by which age verification of the buyer takes place before placing the order. Enabling the purchase of acid in such manner on the e-commerce platform is a clear violation to directions of the Hon’ble Supreme Court of India and the MHA Advisory.

As a result of this, the sale of corrosive acid is enabled by a mere click of a button. Such unverified manner of purchase can cause consumers and public at large to be left vulnerable, unprotected and unsafe, given that the product is capable of causing severe dermal corrosion.

As per Section 4 (3) of Consumer Protection (E-Commerce) Rules, 2020, no e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise

Taking in view the safety of consumers and public at large from such unregulated manner of sale, CCPA has issued Safety Notice urging all e-commerce platforms to immediately incorporate appropriate mechanism to ensure that acid is not purchased on their platforms in violation to the mandatory requirements of the rules notified by the respective State Governments and in case of absence of the same, compliance may be made of the guidelines issued by MHA on 30^th August, 2013. Such measures may include :-

1. Before onboarding a seller which sells acid, take a separate undertaking from such seller on proper compliance to each of the mandatory condition regulating sale of such acid.
2. Mandate the requirement to upload a Photo ID issued by the Government, to ensure that acid is not purchased by any individual below the age of 18 years on the e-commerce platform.
3. Include a section during the purchase process where the buyer must provide specific reason/purpose to procure the acid

The Safety Notice cautions all consumers against purchasing acid on e-commerce platforms without adhering to the mandatory requirements for sale of the same noted above

8.35 kms

8.35 kms for the morning. Weather was humid when it should have been pleasant. Its a kind of a chore to choose routes where there is minimal dust and pollution. Have a great day folks.

alternative investment funds

SEBI proposal passed in its Board meeting held on 25th November, 2023 for protecting interest of investors and facilitating compliance in alternative investment funds

Amendment to SEBI (Alternative Investment Funds) Regulations, 2012, to facilitate ease of compliance and strengthen protection of interest of investors in Alternative Investment Funds.

In order to facilitate ease of compliance and to strengthen investor protection in Alternative Investment Funds (‘AIFs’), the Board approved the following proposals4.1.1 Any fresh investment made by an AIF, beyond September 2024, shall be held in dematerialised form. The existing investments made by AIFs have been exempted from the said requirement, except in cases where –
a. Investee company has been mandated under applicable law to facilitate dematerialisation of its securities; and,
b. Investments where the AIF, on its own, or along with other SEBI registered intermediaries/entities which are mandated to hold their investment in dematerialised form, has control in the investee company.
Further, the said requirement is exempted for investments held by

a. Liquidation schemes of AIFs;
b. Schemes of an AIF whose tenure (not including permissible extension of tenure) ends within one year from the date of issuance of necessary notification in this regard; and,
c. Schemes of an AIF which are in extended tenure as on the date of issuance of the notification.

The mandate for appointment of custodian, currently applicable to schemes of Category III AIFs and to schemes of Category I and II AIFs with corpus more than Rs.5 billion, shall be extended to all AIFs. AIFs
may appoint a custodian who is an associate of manager or sponsor of the AIF, subject to conditions similar to those prescribed under SEBI (Mutual Funds) Regulations, 1996 for permitting related party of sponsor of a Mutual Fund to act as its custodian. The Board also noted that the cost of compliance to the schemes coming under the said mandate was an average of approximately Rs.88,000 per annum for availing custodial services, based on analysis of sample data.

small & medium REiTs

SEBI proposal passed in its Board meeting dated 25th November 2023 with regard to creating a separate framework for small & medium real estate investment trusts.

Facilitation of Small & Medium REITs (“SM REITs”) – Amendments to SEBI (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”) for creation of new regulatory framework
The Board, inter-alia, approved amendments to SEBI (Real Estate Investment Trusts) Regulations, 2014 in order to create a regulatory framework for facilitation of SM REITs, with an asset value of at least Rs.500 million vis-à-vis minimum asset value of Rs.5 billion crore for existing REITs. SM REITs shall have the ability to create separate scheme(s) for owning real estate assets through special purpose vehicle(s) constituted as companies.

The regulatory framework approved by the Board for SM REITs, inter – alia, provides for the structure of SM REITs, migration of existing structures meeting certain specified criteria, obligations of the investment manager including net worth, experience and minimum unitholding requirement, investment conditions, minimum subscription, distribution norms, valuation of assets, etc.

index providers

SEBI proposal passed at its Board meeting held on 25th November, 2023 with regard to regulatory framework for index providers.

Introduction of Regulatory Framework for Index Providers
The Board approved a regulatory framework for Index Providers with the objective of fostering transparency and accountability in governance and administration of financial benchmarks in the securities market.
The regulations will provide a framework for registration of Index Providers which license ‘Significant Indices’ that shall be notified by SEBI based on objective criteria.
The regulatory framework which is in accordance with IOSCO Principles for Financial Benchmarks shall only be applicable to ‘Significant Indices’

social stock exchange

Proposal passed by SEBI in its board meeting held on 25th November, 2023 vis-a-vis Social Stock Exchanges.

1 Flexibility in the framework for Social Stock Exchange (SSE)
1.1 The Board has approved the following, inter-alia, to provide impetus to fund raising by Not for Profit Organizations (NPOs) on the Social Stock Exchange:
1.1.2 Reduction in minimum issue size in case of public issuance of Zero Coupon Zero Principal Instruments (ZCZP) by NPOs on SSE from Rs. 1Crore to Rs. 50 lakh.
1.1.3 Reduction in minimum application size in case of public issuance of ZCZP by NPOs on SSE from Rs 2 lakh to Rs. 10,000, thereby enabling wider participation of subscribers including retail.
1.1.4 Changing the nomenclature of “Social Auditor” with “Social Impact Assessor” to provide comfort to NPOs and convey a positive approach towards the social sector.
1.1.5 Permitting NPO to disclose past social impact report in the fund raising document as per their existing practice subject to disclosure of key parameters such as number of beneficiaries, cost per beneficiary and administrative overhead.
1.1.6 More entities (NPOs) to be made eligible for registration and fund raising through issuance and listing of ZCZP on SSE by permitting entities registered under section 10(23C) and 10(46) of the Income Tax Act, 1961

A Matter of Honour

A fast paced international crime thriller from Jeffrey Archer “A Matter of Honour”

Adam Scott does not know what hit him when he opens a letter left behind among his possessions by his late father, who was at one time a decorated war veteran but later disgraced due to some act.

The letter leaves some clue to an icon left behind by Goering to his father that has some mystery. US and USSR desperately want that icon because huge stakes are involved. Romanov a KGB officer is sent to ferret out the icon from Adam Scott hand.

There ensues a huge chase across Europe with Romanov and his men trying every means to capture Scott and his icon. Bodies pile up and Adam Scott miraculously finds help at the last minute including from one Robin a cello player in an orchestra. Scott also uses his ingenuity to escape the clutches of Romanov.

There is mystery, spy drama, international intrigue, suspense, action galore, murders galore in this engrossing novel by Jeffrey Archer. He has kept the interest alive through his brilliant narrative as usual. Goodreads 5/5

13.17 kms

13.17 kms in brilliant weather today morning. Unseasonal rains in the heavy with thunder and lightning, it was scary to begin with, but the lightning and thunder subsided and rains also became a drizzle. These rains also improved the air quality because with so much of construction activity going, dust & pollution had become a major talking point. Have a great Sunday folks.

Last Life in the Universe

Award winning Thai romantic crime movie “Last Life in the Universe” (2003) directed by Pen-Ek Ratanaruang and starring Tadanobu Asano, Sinitta Boonsayak, Laila Boonsayak, Yutaka Matsushige among others.

Its an unlikely romantic story between a Japanese librarian Kenji (Tadanobu Asano) in Bangkok, who is constantly trying to kill himself and Noi (Sinitta Boonsayak), a Thai girl who is a waitress.

Noi’s sister Nid (Laila Boonsayak) goes around with Yukio (Yutaka Matsushige), Kenji’s brother who is a yakuza gangster having escaped from Japan from his bosses. Yukio slept with his boss’s daughter, so they are after his life. His friend Takashi (Riki Takeuchi) has been sent to kill Yukio.

In Kenji’s neatly kept house, Takashi kills Yukio and Kenji kills Takashi with a gun brought in by Yukio. He then goes to the bridge to kill himself. There Nid and Noi come along and they are arguing with each other on the busy road. Nid is killed by an oncoming vehicle and Noi and Kenji are stunned. Kenji is fascinated with Nid who comes to his library to collect books.

Kenji then goes with Noi to her rural house which is very dirty and he cleans it. Slowly Kenji and Noi start liking each other. Noi is planning to go to Osaka for a job. The ending is quite unpredictable and kind of despairing as well as redeeming.

Its a beautifully told story of two people from different cultures coming together, a kind of unsaid love. The pace of the movie is quite easy and camera work perfect. Sinitta Boonsayak looks gorgeous with her classy looks and Tadanobu Asano the perfect foil for her, a studious silent kind of person. IMDB 5/10

Board of Abhyudaya bank superceeded

In exercise of the powers conferred under Section 36 AAA read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), the Reserve Bank has today superseded the Board of Directors of Abhyudaya Cooperative Bank Ltd., for a period of 12 months. Consequently, the Reserve Bank has appointed Shri Satya Prakash Pathak, former Chief General Manager of State Bank of India as “Administrator” to manage the affairs of the bank during this period. The Reserve Bank has also appointed a “Committee of Advisors” to assist the Administrator to discharge his duties. The members of the “Committee of Advisors” are Shri Venkatesh Hegde (former General Manager, SBI); Shri Mahendra Chhajed (Chartered Accountant); and Shri Suhas Gokhale (former MD, COSMOS Co-operative Bank Limited).

The above action is necessitated due to certain material concerns emanating from poor governance standards observed in the bank. No business restrictions have been placed by RBI and the bank shall continue to carry on its normal banking activities as is hitherto, under the guidance of the Administrator.

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56803

penalty on IOB

The Reserve Bank of India (RBI) has, by an order dated October 31, 2023, imposed a monetary penalty of ₹10 million on Indian Overseas Bank for non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’.

Background

The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank was conducted by RBI with reference to its financial position as on March 31, 2022. The examination of the Risk Assessment Report/Inspection Report pertaining to ISE 2022, and all related correspondence in that regard, revealed, inter alia, non-compliance with the aforesaid directions by the bank, to the extent it sanctioned (1) term loans to two Corporate entities (i) in lieu of or to substitute budgetary resources envisaged for certain projects; (ii) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations; and (iii) the repayment/servicing of which was made out of budgetary resources, and (2) a term loan to another Corporate entity (i) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations; and (ii) the repayment/servicing of which was made out of budgetary resources. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions issued by RBI, as stated therein.

After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, RBI came to the conclusion that the aforementioned charge of non-compliance was substantiated and warranted imposition of monetary penalty.

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56806

penalty on Citibank

The Reserve Bank of India (RBI) has, by an order dated November 02, 2023, imposed a monetary penalty of ₹50 million on Citibank N.A. for contravention of Section 26A of the Banking Regulation Act, 1949 (the BR Act) read with Paragraph 3 of ‘The Depositor Education and Awareness Fund Scheme, 2014 – Section 26A of Banking Regulation Act, 1949 – Operational Guidelines’, Section 10(1)(b)(ii) of the BR Act, and non-compliance with RBI Directions on ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ read with ‘Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016’.

Background

The Statutory Inspection for Supervisory Evaluation (ISE 2021) of the bank was conducted by RBI with reference to its financial position as on March 31, 2021. The examination of the Risk Assessment Report/Inspection Report pertaining to ISE 2021, and all related correspondence in that regard, revealed, inter alia, contravention of the aforementioned provisions of the BR Act and non-compliance with the aforesaid directions by the bank to the extent it (i) failed to credit the eligible amount to Depositor Education and Awareness Fund within the prescribed time period, (ii) paid remuneration in the form of commission to its certain staff members, and (iii) outsourced monitoring and disposal / closure (decision making function) of AML (Anti-Money Laundering) alerts to a Group company. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said direction, as stated therein.

After considering the bank’s reply to the notice, additional information provided by the bank, and the oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of contravention of the provisions of the BR Act and non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56805

penalty on BoB

The Reserve Bank of India (RBI) has, by an order dated November 02, 2023 imposed a monetary penalty of ₹43.4 million on Bank of Baroda (the bank) for non-compliance with certain directions issued by RBI on ‘Creation of a Central Repository of Large Common Exposures – Across Banks’ dated September 11, 2013 read with ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’ dated February 13, 2014, ‘Loans and Advances – Statutory and Other Restrictions’, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.

Background

The Statutory Inspection for Supervisory Evaluation (lSE 2021) of the bank was conducted by RBI with reference to its financial position as on March 31, 2021.The examination of the Risk Assessment Report / Inspection Report pertaining to ISE 2021, and all related correspondence in that regard, revealed, inter alia, non-compliance with the aforesaid directions by the bank, to the extent it (i) failed to ensure accuracy and integrity of data on large exposures submitted to RBI with respect to some accounts, (ii) sanctioned a term loan to a Corporation (a) in lieu of or to substitute budgetary resources envisaged for certain projects; (b) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations; and (c) the repayment / servicing of which was made out of budgetary resources, (iii) sanctioned a working capital demand loan to a Corporation against amounts receivable from government by way of subsidies, and (iv) did not pay interest rate on the deposits accepted from senior citizens, as per the schedule of interest rates disclosed in advance. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56804

10.02 kms

Easy 10.02 kms to kick start the day. Weather has turned fine in Mumbai though the tremendous dust and pollution is a major concern. Dust everywhere. Almost everybody has throat problems and respiratory issues. Had to navigate a new route today to avoid dust laden roads.