India bends backwards to
woo FIIs back
To assuage concerns of foreign portfolio
investors slapped with Minimum
Alternate Tax demand, the Indian govern-
ment put on hold issuance of fresh notices
and any further assessments on levy of this
tax on such entities. In light of the finance
minister’s announcement, no coercive
action will be taken for recovery of any
demand already raised by invoking provi-
sions of MAT as far as foreign companies
Subrata Roy continues to
languish in jail
India’s Supreme Court deferred a deci-
sion on conglomerate Sahara’s bid for bail
for its jailed boss in a long-running dis-
pute over illegal bonds. Roy has been held
in jail for more than a year, after Sahara
failed to comply with a court order to
refund the money it had raised from mil-
lions of small investors by selling bonds
that were later ruled to be illegal. A lawyer
for the group recently said Sahara had
agreed to pay the full $1.6 billion the court
had asked for to release Roy on bail, but
the group has yet to publicly outline that
Housing.com boss gifts his
shares to staff
Rahul Yadav, chief executive officer
of Housing.com said he had allotted all his
personal shares worth an estimated $23.6
million to $31.5 million to the 2,251
employees of the company, setting off
speculation that this would pave the way
for his resignation.
Yadav had quit April 30, after questioning
the intellectual abilities of the company’s
investors in an email, only to later apolo-
gize and withdraw his resignation May 5.
India lags behind BRICS peers on human capital index
India has been ranked at a lowly 100
position on the global Human Capital
Index, which measures countries on devel-
opment and deployment of human capital.
It is ranked lower than smaller neighbors
like Sri Lanka, Bhutan and Bangladesh.
Pakistan follows at 113. India ranks poorly
on both labor force participation and
Finland has topped the 124-nation list.
India now defers GST
Indian Prime Minister Narendra Modi’s
government, facing strong political oppo-
sition, agreed to defer a landmark legisla-
tion for a nationwide goods and services
tax in a setback for its reform program.
The decision to send the bill for a parlia-
mentary committee review spooked
investors, leading to a more than 2 percent
fall in stock markets.
HSBC downgrades Indian
equities to ‘underweight’
In the first major downgrade for Indian
markets in the past one year, global bro-
kerage HSBC changed its stance on the
country to ‘underweight’, saying corporate
earnings may remain muted, monsoon
could be weak and odds are against fur-
ther rate cuts.
HSBC further said that India has
become the second most expensive and
one of the most over-owned markets in
Asia, after a strong rally on the back of
reform optimism generated by the Modi
government over the past one year. The
downgrade comes at a time when Indian
markets are already under acute pressure,
primarily because of foreign investors
turning heavy sellers on concerns related
to the controversial MAT levy and delay in
the ambitious indirect tax and land
IBM picks Surat,
Allahabad, Vizag for smart
Tech giant IBM has chosen Surat,
Allahabad and Vizag among 16 global
locations for its smart cities program to
help them address challenges like waste
management, disaster management and
IBM will send a team of experts to each
of the chosen cities where they will spend
three weeks working closely with city staff
analyzing data about critical issues.
India’s smart cities program can create
business opportunity to the tune of $30-
40 billion for the information technology
sector over the next 5-10 years.
Sanjay Gupta to be business
dean of Michigan State varsity
Sanjay Gupta, an expert in accountancy, is set
to become the dean of the Eli Broad College of
Business at Michigan State University from June
17. He currently serves as acting dean of the busi-
ness college and is also the Russell E Palmer
Endowed Professor in accounting.
The India-born Gupta, an MSU alumnus, has
held several faculty positions at Arizona State
University including the first Henry & Horne
Professorship in accountancy. He is an expert on
corporate and individual tax policy.
Some special BMWs are soon going to be rolling out of the compa- ny’s Chennai plant. They had cricketer Sachin Tendulkar helping with car assembly in the BMW 5 series recently. It was BMW’s way of marking its ‘Make in India’ initiative.
Sanjay Gupta MSU.EDU
When Sachin built a BMW!
the week that was
Two Indian Americans residents of Jersey City were arrested in New Jersey May
13 on charges of H-1B visa fraud.
‘Hiral Patel, 32, and Shikha Mohta, 31, employees of SCM Data Inc and MMC
Systems Inc have been charged with one count of conspiracy to bring in and har-
bor aliens and to obstruct justice,’ the Press Trust of India reported. ‘The conspira-
cy with which Patel and Mohta are charged carries a maximum potential penalty
of five years in prison and a $250,000 fine. The federal complaint alleges that
Patel, Mohta and other conspirators sponsored the foreign workers’ H1-B visas
with the stated purpose of working for SCM Data and MMC Systems’ clients
throughout the United States.’
The report added, ‘When submitting the visa paperwork to the Department of
Homeland Security, they falsely represented that the foreign workers had full-time
positions and were paid an annual salary, as required to secure the H-1B visas.
Contrary to these representations and in violation of the H-1B program, Patel,
Mohta and others paid the foreign workers only when they were placed at a third-
party client who entered into a contract with SCM Data or MMC Systems, the fed-
2 Indian-Americans arrested for H1B visa fraud