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    CCI approves acquisition of majority stake in Tribhovandas Bhimji Zaveri Limited by GRT Jewellers (India) Private Limited
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October 14, 2026
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Majority stake acquisition in the jewellery sector receives competition clearance for GRT Jewellers' purchase of Tribhovandas Bhimji Zaveri.
Competition Commission of India approved GRT Jewellers (India) Private Limited's proposed acquisition of a majority stake in Tribhovandas Bhimji Zaveri Limited. The transaction concerns entities operating in the Indian gems and jewellery market, including a private limited acquirer and a publicly listed target engaged in manufacturing and sale of gems and jewellery.
October 14, 2026
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Minority shareholding acquisition in mother and baby healthcare receives competition clearance for a private equity-backed investment.
Competition Commission of India clearance authorises NuageLux BidCo S.a r.l. to acquire approximately 23% of the fully diluted shareholding in Kids Clinic India Ltd. The transaction constitutes an acquisition of a minority equity interest in a healthcare provider operating under the Cloudnine brand. NuageLux BidCo is a Luxembourg-incorporated private limited special purpose vehicle, ultimately controlled by Permira Holdings Ltd.
October 14, 2026
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Competition clearance permits development finance and alternative investment funds to acquire equity in an agricultural commodities trading business.
Competition clearance has been granted for the acquisition of certain equity shareholding in FarMart Service Private Limited by Impact Fund Denmark, Belgian Investment Company for Developing Countries SA/NV, and Orios Fund IIIa. FarMart conducts business-to-business trading, purchasing and selling of agricultural products and commodities in India and international markets. The acquiring investors include development finance institutions and a sub-fund of a SEBI-registered Category II alternative investment fund.
October 14, 2026
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Strategic bank restructuring requires independent valuation, qualified bidding, regulatory fit-and-proper review, and a compliance roadmap before ownership transfer.
Strategic restructuring of IDBI Bank Ltd. involves the sale of 60.72% of its shareholding to an approved Strategic Buyer, comprising holdings of the Government of India and LIC. Qualified bids were evaluated against a benchmark derived from independent Market Multiple and Asset Valuation methods, with volatile stock-market prices disregarded. Further steps require fit-and-proper assessment, a regulatory compliance roadmap, withdrawal of government and LIC board nominees, and management or sale of their residual shareholdings under applicable procedures.
October 14, 2026
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Strategic bank divestment requires fit and proper screening, independent valuation, competitive bids, and continuing regulatory compliance.
Strategic restructuring of IDBI Bank Ltd. has been approved through sale of a 60.72% equity stake to a strategic buyer, with residual holdings retained by the Government of India and LIC. Bidder participation required fit-and-proper and security clearances. After initial bids fell below the reserve price, best offers were assessed against independent enterprise valuations based on the Market Multiple Method and Asset Valuation Method. The successful bid exceeded the benchmark and both fair-value estimates. Completion remains subject to regulatory credentials and a compliance roadmap.
October 14, 2026
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Illicit cannabis cultivation enforcement combines source destruction, technology-assisted identification, and alternative crop development to disrupt narcotics supply chains.
Operation Parivartan uses ground surveys and drone technology to identify and destroy illicit cannabis cultivation at source, with Forest and Police Department support in difficult terrain. It also incorporates public dialogue and alternative crop development under the NDPS Policy 2012. CBN, as the apex drug law-enforcement and regulatory agency under the Department of Revenue, is responsible for identifying and destroying illicit cannabis and opium cultivation and continues such operations nationwide.
October 14, 2026
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Import prohibition on Pakistani-origin goods: third-country routing and fabricated origin records triggered customs enforcement and arrests.
India's prohibition on direct or indirect import or transit of Pakistani-origin goods is alleged to have been circumvented through third-country routing and false origin documentation. Operation Deep Manifest identified rock salt imports routed through Colombo with purported UAE-issued certificates of origin and invoices. Preliminary investigation linked importers to an alleged transnational network using fabricated trade records and false declarations of origin. Containers, bank-held sales proceeds and Pakistan-origin dry dates were seized, and four persons were arrested under the Customs Act, 1962.
October 14, 2026
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International financial cooperation will guide multilateral and bilateral discussions on economic outlook, reform priorities, investment opportunities, and infrastructure financing.
India's Finance Minister will participate in multilateral and bilateral economic discussions addressing economic developments, financial-sector issues, the global economic outlook, development priorities, international financial cooperation, and reform of the international financial architecture. Related engagements will examine trade resilience, investment opportunities, and mobilisation of private capital for urban and water infrastructure, while highlighting India's economic performance and reform priorities.
October 14, 2026
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GST annual return filing requires prior GSTR-1 and GSTR-3B filing before access to annual return forms.
GSTR-9/9C annual return filing for FY 2025-26 is enabled on the GST portal from 8 October 2026. Access to the annual-return filing tile requires filing all GSTR-1 and GSTR-3B returns for the relevant financial year. Taxpayers requiring filing assistance may submit a support ticket through the GSTN helpdesk.
October 13, 2026
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Automated GST registration and refunds streamline compliance through risk-based processing, electronic verification, and limited officer intervention.
GST refund administration is proposed to use phased risk-based system processing, with acknowledgement or deficiency action within ten days, deemed acknowledgement on inaction, automated provisional refund for eligible low-risk zero-rated and inverted-duty claims, and fully automated refund of excess electronic cash-ledger balances. Validation failures require correction and fresh filing or referral for officer scrutiny, while final scrutiny remains applicable in specified cases. Applicants must file all due returns and submit supporting material electronically. Delayed-refund interest applies beyond the statutory period, and eligible input-service and capital-goods credit is proposed to be included in prescribed refund computations.
October 13, 2026
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Integrated infrastructure planning under PM GatiShakti uses geospatial data and coordinated appraisal to strengthen multimodal connectivity and logistics efficiency.
PM GatiShakti National Master Plan uses an integrated geospatial planning framework to coordinate infrastructure, economic and social-sector development. The framework supports multimodal connectivity, intermodal links, last-mile access, project appraisal and synchronised implementation. It has expanded to district-level planning for local services and is supported by public-access, knowledge-sharing, decentralised data-management and monitoring systems. The Integrated Transport and Logistics Authority is intended to strengthen transport and logistics research, planning, appraisal, monitoring and impact assessment.
October 13, 2026
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Public asset e-auctions enable transparent land monetisation through registration, due diligence, and competitive online bidding.
NLMC's first end-to-end e-auction monetised surplus RINL land through transparent, competitive online bidding, selling 150 plots at bids above the aggregate reserve price. The process is coordinated with the asset owner and includes bidder outreach, registration, documentation, Earnest Money Deposit requirements, and online participation. A final phase for the remaining parcels requires timely registration, review of reserve prices, eligibility conditions and participation requirements, due diligence, and completion of prescribed formalities.
October 13, 2026
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Bribery allegations involving tax enforcement powers led to arrest during an alleged acceptance of undue advantage.
Bribery allegations concern a CGST Superintendent accused of demanding a monthly undue advantage from a scrap-business proprietor in exchange for not intercepting scrap vehicles or obstructing the business. A criminal case was registered, and a trap operation resulted in the Superintendent being apprehended while allegedly accepting the demanded undue advantage. Searches recovered cash and immovable-property documents, and the investigation remains ongoing.
October 13, 2026
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Financial connectivity and investment cooperation focused on institutional capital, digital finance, and strategic-sector investment opportunities.
Bilateral investment and financial cooperation between India and Singapore focused on mobilising long-term institutional capital, expanding financial connectivity, and increasing investment in infrastructure and strategic sectors. Investment discussions covered AI-related infrastructure, semiconductors, renewable energy, manufacturing, MSMEs, trade finance, healthcare and food supply chains. Financial-technology dialogue addressed asset tokenisation, digital money, CBDCs, interoperability and trusted settlement arrangements, alongside possible cooperation on their use in financial markets.
October 12, 2026
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CETA implementation prioritises accessible origin rules, customs guidance, and business engagement to expand bilateral trade and investment.
Effective CETA implementation depends on accessible tariff schedules, rules of origin and documentation guidance, together with support for businesses navigating tariff reductions, customs procedures, regulatory requirements and procurement opportunities. Committees, working groups and a joint utilisation review are intended to receive business feedback, address implementation issues and improve use of the agreement. Sectoral round tables, delegations and exhibitions, along with mutual recognition and capacity-building, are envisaged to support new exporters, product lines, investment and partnerships.
October 12, 2026
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CETA implementation establishes annual utilisation data exchanges and institutional mechanisms to support preferential trade and resolve business barriers.
CETA implementation includes annual exchanges of utilisation data and business feedback, beginning one year after entry into force, to identify barriers to preferential tariff use and support needs. Committees, working groups and government contact points will be established to maintain operational implementation and address emerging issues. Certificates of Origin issued through self-certification support claims for preferential treatment, while tariff-rate quotas apply to specified vehicle imports.
October 12, 2026
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Trade openness and domestic manufacturing are positioned to expand technology access, investment, employment, and global competitiveness.
Global market engagement through Free Trade Agreements is paired with domestic manufacturing and employment objectives. Access to advanced technologies and electronics is linked to investment in electronics, white goods and semiconductor manufacturing. Tourism, demographic advantage and international demand for Indian workers are identified as employment opportunities. Car-import quota arrangements with the United Kingdom and European Union are described as focused on expensive vehicles, while domestic automobile manufacturing and world-class quality standards are positioned as central to global competitiveness.
October 12, 2026
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NDPS enforcement targets concealed poppy straw trafficking through intelligence-led vehicle interceptions, seizures, arrests, and continuing network investigation.
NDPS Act enforcement involved two intelligence-based vehicle interceptions leading to seizure of 4,209.80 kg of concealed poppy straw, two vehicles and wheat bags used as cover cargo. Three persons were arrested under the relevant provisions. The recovered contraband included lanced poppy straw, unlanced poppy straw and poppy straw powder. Investigation continues to identify the source, intended recipients and other persons connected with the trafficking network.
October 12, 2026
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Gold smuggling through engineered vehicle cavities triggered customs seizure and arrests after intelligence-led interception of interstate transport routes.
Intelligence-led customs enforcement intercepted a car travelling from Kolkata to Hyderabad at Visakhapatnam and recovered 5,832.90 grams of 24-carat foreign-origin gold from a specially fabricated cavity beneath the front co-passenger seat leg space. The occupants reportedly admitted that the gold had been smuggled into India through the Indo-Bangladesh border. The gold was seized under the Customs Act, 1962, and both occupants were arrested.
October 12, 2026
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Cross-border gold smuggling faces intelligence-led seizures where transporters cannot substantiate lawful possession or procurement of foreign-origin gold.
Intelligence-led enforcement against cross-border gold smuggling resulted in the seizure of foreign-origin gold moved through road and railway corridors connecting Bangladesh-border areas and Tripura with Kolkata. Vehicle occupants and railway passengers failed to furnish documents supporting lawful possession or procurement of the gold. Investigations linked gold recovered in bangles and bars to material smuggled across the Indo-Bangladesh border and indicated the involvement of an organised syndicate using transport routes to move gold towards major markets.

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Customs, DGFT & SEZ

Second Bi-monthly Monetary Policy Statement, 2016-17 By Dr. Raghuram G. Rajan, Governor

June 7, 2016

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Monetary and Liquidity Measures

On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:

  • keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent;
  • keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); and
  • continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality.

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.0 per cent.

Assessment

2. Since the first bi-monthly statement of April 2016, global growth is uneven and struggling to gain traction. World trade remains muted in an environment of weak demand. In the United States, growth was slow once again in Q1 because of contracting industrial activity and exports. Recent indicators of labour market activity have also weakened. In the Euro area, by contrast, Q1 GDP rose strongly on the back of robust consumer spending and recovering employment and business conditions. In Q2 so far, unemployment is falling, albeit slowly, and purchasing managers’ sentiment is upbeat. In Japan, growth surprised on the upside in Q1, with the economy escaping a technical recession, but industrial activity remains weak and deflationary pressures are building.

3. GDP growth slowed sequentially in China in Q1, with retail sales, industrial production and fixed investment showing signs of weakness in recent months amidst still rising levels of indebtedness among households and corporations. While macroeconomic stability is returning to some emerging market economies (EMEs), geo-political tensions and high volatility in financial markets impede the resumption of momentum, and the outlook remains challenging. The recent uptick in commodity prices is providing some relief to commodity exporters but political events could unsettle investor sentiment and consequently, capital flows could turn volatile again. For commodity importers, net terms of trade gains are moderating.

4. Global financial markets have recorded gains through Q2 of 2016, spurred by risk-on investor sentiment. Portfolio flows are returning, albeit hesitantly, to EME debt and equity markets. The firmness in crude prices that set in around mid-March has been supported in subsequent weeks by some temporary reductions in global supply. Gold prices remain elevated on safe haven demand. Other non-energy commodity prices remain stable with a hint of upside, while steel prices have firmed appreciably. Bond market yields across AEs have eased steadily, reflecting strong appetite in primary auctions in the face of the growing universe of negative yielding bonds. The US dollar continues to mirror changes in expectations of monetary policy action by the Fed. The yen and the euro have remained strong despite ultra-accommodative monetary policies. Among EMEs, some currencies are trading with an appreciating bias, with the biggest gains recorded by the currencies that had depreciated the most earlier.

5. On the domestic front, the recently released provisional estimate of gross value added (GVA) for 2015-16 marginally scaled down the annual growth rate to 7.2 per cent, on a deceleration of services sector activity in relation to the advance estimates. There was, however, a sequential pickup in activity in Q4 in line with expectations. As regards the current financial year, the India Meteorological Department (IMD) has forecast an above-normal and well-distributed south west monsoon as El Nino wanes – albeit with a slightly delayed onset. Realisation of this prediction is critical for the outlook for agriculture since reservoir levels have been depleted to 17 per cent of capacity – 40 per cent lower than the level a year ago. Even though rabi procurement was lower in April-May 2016 than a year ago, mid-May food stocks at 58 million tonnes were almost three times the norm for Q1.

6. The index of industrial production decelerated in 2015-16, mainly pulled down by weak manufacturing in an environment of subdued investment demand and weak rural consumption. In May 2016, the manufacturing purchasing managers’ index (PMI) remained subdued on account of slowing output and export orders. However, except for natural gas and crude oil, the core sector registered strong growth in April 2016 on account of a seasonal pick-up in industries like electricity, also supported by a low base. There are signs that corporate performance is improving. Available information on Q4 earnings suggests double digit growth in EBITDA levels for non-financial corporates. The Reserve Bank’s latest rounds of forward looking surveys indicate an improvement in the overall business situation, driven by a pick-up in capacity utilisation and in order books – both domestic and external. These developments have improved the expectation of business conditions in the first half of 2016-17. Public investment, especially in roads and railways, is gaining strength, though the continuing weakness in private investment is of concern. Demand conditions are likely to improve going forward; consumer confidence is seen as rising on improving expectations of employment and spending, with rural demand aided by a stronger monsoon. Rising capacity utilisation should prompt private investment.

7. Some high frequency indicators for April point to a firming recovery, although it is still uneven. Leading the upturn are cargo traffic at major ports, automobile sales (especially two-wheelers and three-wheelers), commercial vehicle sales, passenger air and freight traffic, cement production and steel consumption. Abstracting from seasonal effects, this suggests that the expansion, especially in the service sector, is getting broad-based. On the other hand, railway freight traffic and passenger car sales have decelerated on sector-specific constraints. Purchasing managers in the services sector indicated slowing new business in May and subdued expectations of future activity.

8. The ebbing of inflation pressures for two consecutive months to March, after a period of steady rise, was interrupted once again in April. Retail inflation measured by the consumer price index (CPI) rose more sharply than expected due to a more-than-seasonal jump in food prices. Within the food group, inflation in respect of vegetables, fruits, sugar, meat and fish rose sizably from their prints in the previous month. Inflation in respect of pulses remained elevated; the recent decline in prices of pulses reversed, yielding a sharp increase in April. Production of pulses has fallen for the second consecutive year, according to the third advance estimates for 2015-16. There was also a firming of inflation relating to edible oils, spices and non-alcoholic beverages. Cereal inflation, however, remained subdued, reflecting supply management efforts that expanded offtake from food stocks. Inflation in respect of the fuel group eased mainly due to firewood and stronger deflation in respect of LPG prices. Reflecting these recent inflation dynamics, three-months-ahead inflation expectations of households moved up marginally in May.

9. CPI inflation excluding food and fuel edged up in April, driven by prices of petrol and diesel embedded in transport and communication. Clothing and footwear also registered moderate increases in inflation. Services inflation remained elevated on account of house rents, water charges, tuition fees and taxi/auto fares. Excluding petrol and diesel from this category, inflation was sticky and above 5 per cent. However, since growth in rural wages and corporate staff costs have been modest, cost-push factors may be subdued for the time being.

10. Despite the waning of liquidity pressures in early April, stronger-than-usual currency demand during the first two months of the financial year and build-up of cash balances by the Government from the second week of May tightened liquidity conditions from mid-May. In order to mitigate these pressures, the Reserve Bank injected liquidity through purchases under open market operations (OMOs) of ₹ 700 billion during April-May in pursuance of the revised liquidity management framework outlined in the April bi-monthly policy statement. Additionally, liquidity was injected through variable rate repos of various tenors, in addition to the regular 14-day term repos and overnight fixed rate repo and MSF. The average daily net liquidity injection through the liquidity adjustment facility (including MSF) declined from ₹ 1935 billion in March 2016 to ₹ 1030 billion during April-May and further to ₹ 120 billion in June (up to June 5, 2016). The weighted average call money rate (WACR) remained closely anchored to the policy rate within a narrower corridor of +/- 50 basis points around the policy repo rate. Volatility also declined significantly. Interest rates on money market instruments such as certificates of deposit (CDs) and commercial paper (CPs) also eased through the quarter so far.

11. Exports declined for the seventeenth consecutive month in April in US dollar terms in spite of a modest increase in volume. The fall in crude oil prices led to lower export realisations from petroleum products (POL), although the volume of shipments of petroleum products is estimated to have picked up modestly. Among non-oil items, exports of gems and jewellery, drugs and pharmaceuticals, chemicals and electronic goods improved over their levels a year ago. By contrast, exports of engineering goods declined for the ninth straight month while readymade garments recorded a fall for the fourth successive month. Imports fell sharply and across constituents – 25 items accounting for a share of 87 per cent in total imports recorded a decline; POL imports also declined, essentially reflecting lower prices. Accordingly, the trade deficit narrowed sequentially and was less than half its level a year ago. Portfolio flows resumed in April and May. The level of foreign exchange reserves rose to US $ 360 billion by May 27, 2016.

Policy Stance and Rationale

12. The inflation surprise in the April reading makes the future trajectory of inflation somewhat more uncertain. The expectations of a normal monsoon and a reasonable spatial and temporal distribution of rainfall, along with various supply management measures and the introduction of the electronic national agriculture market (e-NAM) trading portal, should moderate unanticipated flares of food inflation. In addition, capacity utilisation indicators suggest that the available headroom in industry could keep output prices subdued even as demand picks up. Nonetheless, there are upside risks – firming international commodity prices, particularly of crude oil; the implementation of the 7th Central Pay Commission awards which will have to be factored into projections as soon as clarity on implementation emerges; the upturn in inflation expectations of households and of corporates; and the stickiness in inflation excluding food and fuel. Taking these factors into account, the inflation projections given in the April policy statement are retained, though with an upside bias. Considerable uncertainty surrounds these projections (Chart 1), which should be clarified by incoming data in the next few months.

13. Domestic conditions for growth are improving gradually, mainly driven by consumption demand, which is expected to strengthen with a normal monsoon and the implementation of the Seventh Pay Commission award. Higher public sector capital expenditure, led by roads and railways, should crowd in private investment, offsetting somewhat the subdued appetite for fresh private investment due to financial stress. Yet, business confidence will be restrained to an extent on account of unrelenting global factors. On a reassessment of balance of risks, therefore, the GVA growth projection for 2016-17 has been retained at 7.6 per cent with risks evenly balanced.

14. In its bi-monthly monetary policy statement of April 2016, the Reserve Bank stated that it would watch macroeconomic and financial developments in the months ahead with a view to responding as space opens up. Incoming data since then show a sharper-than-anticipated upsurge in inflationary pressures emanating from a number of food items (beyond seasonal effects), as well as a reversal in commodity prices. A strong monsoon, continued astute food management, as well as steady expansion in supply capacity, especially in services, could help offset these upward pressures. Given the uncertainties, the Reserve Bank will stay on hold, but the stance of monetary policy remains accommodative. The Reserve Bank will monitor macroeconomic and financial developments for any further scope for policy action.

15. More monetary transmission to support the revival of growth continues to be critical. The government’s reform measures on small savings rates combined with the Reserve Bank’s refinements in the liquidity management framework should help the transmission of past policy rate reductions into lending rates of banks. The Reserve Bank will shortly review the implementation of the Marginal Cost Lending Rate framework by banks. Timely capital infusions into constrained public sector banks will also aid credit flow.

16. The third bi-monthly monetary policy statement will be announced on August 9, 2016.

Sangeeta Das
Director

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Acts Income Tax