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ET Daily Rundown (ET Online)
Supreme Court delivers two verdicts, GST spares none
03:45 Min | November 14, 2019, 5:42 PM IST
The Supreme Court gives a clean chit to Modi government over Rafale deal and refers the Sabarimala case to a larger bench comprising 7 judges for review. For more, tune in to the podcast!
TranscriptScript: Deepshikha Rahi
Hosts: Ankita Sen, Deepshikha Rahi
Producer: Deepshikha Rahi
Two major Supreme Court verdicts today.
Rafale and Sabarimala.
And the economy slips further.
Hello, I am Deepshikha Rahi and I am Ankita Sen. You're listening to ET Daily Rundown.
The Supreme Court has given a clean chit to the Modi government in the Rafale deal that came into probe in 2016.
The apex court struck the review petitions saying they lacked merit.
What was the deal again?
Indian govt inked a direct deal with the French govt to purchase 36 Rafale jets. These jets are said to be untraceable while deploying which could give India an upper edge over Pakistani jets.
Another Supreme Court verdict on Sabarimala temple, follows
The ruling comes ahead of the next pilgrimage season beginning November 16.
The court has not overturned its earlier ruling that allowed women in the age group 10 to 50 to visit Lord Ayyappa's temple.
However the court has referred the case to a larger bench comprising 7 judges for further review.
The issue will now be placed before a larger bench. Justices RF Nariman and DY Chandrachud dissented.
Moving on, we have wholesale inflation figures.
October WPI dips marginally to 0.16% from 0.33% in September.
Didn't the market experts predicted it to plunge into negatives this month?
Yes, but it did not fall into the negative territory due to the higher food prices according to CPI numbers.
However, this is the lowest the WPI has touched in more than three years.
A downfall in demand has led the producers to cut back on production thereby pulling back the manufacturing sentiment.
Hence, inflation for manufactured goods stood at -0.84% conveying a dip in their pricing power.
Doesn't show a pretty picture right?
Yes. Moody's just lowered its economic growth forecast for India to 5.6% in 2019 from erstwhile 5.8% predicted last month.
In another news, Aditya Birla Group has declined to infuse any fresh equity into Vodafone Idea Ltd.
Aditya Birla has a joint venture with telecom major Vodafone Group of UK.
Claiming further capital investment into the venture to be unsustainable, Aditya Birla prefers VOdafone Idea to opt for insolvency if the government does not provide substantial relief.
This includes the telco's adjusted gross revenue (AGR)-based dues, which could be over 39,000 crore.
Well, in a similar fashion, Softbank has laid out new terms and conditions for Paytm as a part of its latest financing round.
Softbank had stipulated years ago that Paytm should go for public equity within five years from the time of completion of the transaction.
Softbank is a major stakeholder, 19% followed by Alibaba Group. The deal is nearing a closure with both arties reaching an agreement, as told by an official.
Phew. Nothing comes for free.
True, at least under the GST,this holds true.
The Income Tax department wants corporates to proportionately distribute common costs from head office to branch offices and treat this as a supply.
Once treated as a supply, 10% of the same has to be added to the cost and 18% GST could be levied on the total amount.
While some companies have already been sent a notice, others need to be wary!
For more news, views and cues, log on to economictimes.com