Latest news with #Shroff
Hindustan Times
2 days ago
- Business
- Hindustan Times
Citizens abroad for the long term are non-residents under FERA: HC
MUMBAI: The Bombay high court on Wednesday observed that persons staying abroad with no clear intention of returning to India would be treated as 'persons resident outside India' under the Foreign Exchange Regulation Act (FERA), and upheld a penalty of ₹ 1.4 crore against a family which purchased a huge amount of shares from an Indian company without prior appeal to the Reserve Bank of India (RBI). (Shutterstock) The case dates back to the mid-1990s, when a series of share transactions was carried out by the Shroff family and its company Sujay Trading Corporation Pvt Ltd. The Enforcement Directorate (ED) on November 18, 1999, had served the family with a notice, stating that Shroff's daughters, who were residents of the United States, had purchased shares worth ₹ 16 lakh from a Mumbai-based company called Ditco Securities Pvt Ltd without taking prior approval from the RBI as prescribed under FERA. Remarking that the daughters were 'persons resident outside India' under FERA, the ED stated that they were married in the US and had been settled there for a few years. Highlighting their lack of intention of returning to India permanently and the purchase of shares from an Indian company without the RBI's approval resulted in the ED penalising them on October 30, 2000. The three daughters were charged an amount of ₹ 41 lakh each, ₹ 25.8 lakh was levied on their father, and ₹ 8.5 lakh on Sujay Trading Pvt Ltd, which was run by the parents. Aggrieved by this, the Shroff family approached the Appellate Tribunal for Foreign Exchange, which upheld the conclusions reached by the ED and dismissed the appeals on November 18, 2005. Subsequently, the family appealed in the Bombay high court in 2006, challenging the orders passed by the ED and the appellate tribunal. The family contended that the daughters were not 'persons resident outside India' but were students pursuing their higher studies in the US. Therefore, there was no need for them to obtain permission from the RBI for the purchase of shares in an Indian company. Based on this defence, they submitted that there was no violation of any of the provisions of FERA. Highlighting the clear intentions of the Shroff daughters to settle in the US, the ED clarified that it had taken the decision after evaluating the relevant documents. It stated that the penalties imposed on the Shroffs were proportionate to the economic offence, and were legally sound. The division bench of Justices M S Sonak and Jitendra Jain upheld the decision of the ED and the appellate tribunal and observed that the daughters' prolonged stay in the US clearly reflected their intention to permanently settle abroad, thereby establishing them as 'persons resident outside India'. It held that the evidence, such as their marriage and their continued stay outside India since the 1980s, corroborated their intentions. The court further stated that merely holding an Indian citizenship or a student visa did not exempt them from the provisions of FERA. With no exemptions proven by the family, the bench held that there was no error in the findings by the authorities and upheld the penalties. 'Considering the magnitude of the transactions and the circumstances in which the same were carried out, there is no substance in the argument based on any alleged disproportionality in the penalty amounts, ' it added.
India Today
2 days ago
- Business
- India Today
How AI and sensors are shaping smart homes of the future
First, the idiot box became smarter, then mobile phones, home appliances, and now the entire home can be operated and controlled by pressing a few buttons. Energy efficient and high on security, smart homes seem to be the way of the future. But what makes a home smart, and what do we truly need for a healthier and better life?'We live in a world on the cusp of reimagining how we interact with the spaces around us, with AI, sensors and data at the heart of this change,' explains architect Apoorva Shroff, founder and principal designer at Mumbai-based Lyth Design. Shroff believes it is more important than ever now because in a country as diverse as ours, the one-size-fits-all approach never IS SMART DESIGN?'Intelligent design does not only mean smart gadgets or automated lighting. It's about architecture that listens and responds, quietly and purposefully, to the rhythms of life,' says Shroff. She explains with an example of a school building where sensors monitor indoor temperature and automatically adjust louvres or skylights to optimise natural ventilation. 'Or an elderly care home where AI subtly adjusts lighting and temperature based on time of day and the occupants' routines,' she adds. These aren't far-fetched ideas anymore; they are within reach. THE NEED OF THE HOURWhat is most exciting is how AI is helping architects make better decisions, not just faster ones. 'Tools that analyse site topography, sun path, wind movement or even pedestrian circulation can now give us insights in minutes that would take days to model manually,' says Shroff. 'But data is only powerful when paired with intuition. I have learned that while machines can show us patterns, the architect still needs to bring empathy to the table, to ask why this matters to the people who will live or work here.'advertisement SENSE WITH SENSIBILITYIf Shroff is to be believed, sensors have become silent storytellers in our buildings. 'They pick up on patterns we overlook: how long a corridor stays lit after use, which windows are never opened, how often people actually use that cosy reading nook,' explains the architect. Of course, this is beneficial only when used ethically, as the data would help create spaces that are less wasteful and more meaningful.'However, in India, technology must always meet context. A rural health centre doesn't need a complex AI system; it needs a solar-powered sensor that tracks medicine refrigeration,' says Shroff. She shares another example of an urban housing project that can benefit from a responsive faade that reacts to air quality levels. 'The challenge for us is to democratise smart design, so it isn't just the privilege of high-end offices or luxury residences, but becomes integral to schools, homes, clinics and public spaces across the country,' she data and algorithms cannot replace human intuition. 'The role of the architect remains central, not just in interpreting data, but in ensuring that technological interventions enhance, rather than overwhelm, the lived experience. Technology must be an enabler of empathy, not a substitute for it,' she what is the future of Indian architecture? It lies in building systems that are quiet yet responsive, spaces that adapt not just to the climate outside but also to the rhythms of those within. 'When AI and sensors are used with intention and restraint, they become invisible allies in creating environments that are sustainable, intuitive, and deeply human,' says Shroff. And we couldn't agree to India Today Magazine- EndsTrending Reel
Economic Times
2 days ago
- Business
- Economic Times
LIC Mutual Fund trims long-term bond holdings as rate-cut rally ends
LIC Mutual Fund is lowering maturities across debt schemes and investing in up to five-year notes, as India's rate cut-led bond market rally is largely over, chief investment officer at the asset manager said on Thursday. ADVERTISEMENT Earlier this month, India's central bank slashed its key policy rate by a larger-than-expected 50 basis points, but also changed its policy stance to "neutral", leading to expectation that the rate-cutting cycle is coming to a close. "We are trimming duration across schemes. The big part of the rally is over and with the current geopolitical scenario we have to be a bit cautious," Marzban Irani, whose fund house manages debt worth 220 billion rupees ($2.6 billion), said in an interview. Irani, however, does not rule out one more India rate cut as the Federal Reserve should also ease rates later in the year. The fund manager is not very bullish on India's 10-year government bond, which he says should trade in a range of 6.15% to 6.30% over the medium-term against 6.26% on Thursday. The 10-year yield fell nearly 50 basis points after India's first rate cut in February through June 6, when the central bank surprised with the change in stance. Since then, it has risen 4 basis points. ADVERTISEMENT Prateek Shroff, a fund manager at LIC Mutual Fund, said that bank-issued one-year certificates of deposit are trading at 6.40%-6.50%, "a very good accrual" over the policy repo rate of 5.50%. "When the market is in passive mode, the shorter-end will continue to remain in demand," Shroff said. ADVERTISEMENT Shroff also expects one more rate cut this year, probably in October or December. Short-term bond yields should remain contained despite the central bank's announcement of an operation to withdraw cash from the banking system, the fund managers said. ADVERTISEMENT "Yields can harden 5-10 bps on the shorter end because of this but then the market will settle down," Shroff said. LIC Mutual Fund is also comfortable with corporate bonds of two-to-three years due to their attractive returns over overnight funding rates, according to Shroff. ($1 = 85.8070 Indian rupees) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
2 days ago
- Business
- Time of India
LIC Mutual Fund trims long-term bond holdings as rate-cut rally ends
LIC Mutual Fund is lowering maturities across debt schemes and investing in up to five-year notes, as India's rate cut-led bond market rally is largely over, chief investment officer at the asset manager said on Thursday. Earlier this month, India's central bank slashed its key policy rate by a larger-than-expected 50 basis points, but also changed its policy stance to "neutral", leading to expectation that the rate-cutting cycle is coming to a close. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mischen Sie das in Ihren Kaffee und lassen Sie überschüssige Kilos purzeln Mehr erfahren Undo "We are trimming duration across schemes. The big part of the rally is over and with the current geopolitical scenario we have to be a bit cautious," Marzban Irani, whose fund house manages debt worth 220 billion rupees ($2.6 billion), said in an interview. Bonds Corner Powered By LIC Mutual Fund trims long-term bond holdings as rate-cut rally ends LIC Mutual Fund is lowering maturities across debt schemes and investing in up to five-year notes, as India's rate cut-led bond market rally is largely over, chief investment officer at the asset manager said on Thursday. BoI to raise Rs 20,000 cr via infra bonds this fiscal Indian bonds flat as sell-off stalls after pricing in RBI liquidity plan T-bill, money market rates rise on VRRR plan Gandhinagar Municipal Corporation's Rs 25 crore bonds list on NSE Browse all Bonds News with Irani, however, does not rule out one more India rate cut as the Federal Reserve should also ease rates later in the year. The fund manager is not very bullish on India's 10-year government bond, which he says should trade in a range of 6.15% to 6.30% over the medium-term against 6.26% on Thursday. Live Events The 10-year yield fell nearly 50 basis points after India's first rate cut in February through June 6, when the central bank surprised with the change in stance. Since then, it has risen 4 basis points. Prateek Shroff, a fund manager at LIC Mutual Fund, said that bank-issued one-year certificates of deposit are trading at 6.40%-6.50%, "a very good accrual" over the policy repo rate of 5.50%. "When the market is in passive mode, the shorter-end will continue to remain in demand," Shroff said. Shroff also expects one more rate cut this year, probably in October or December. Short-term bond yields should remain contained despite the central bank's announcement of an operation to withdraw cash from the banking system, the fund managers said. "Yields can harden 5-10 bps on the shorter end because of this but then the market will settle down," Shroff said. LIC Mutual Fund is also comfortable with corporate bonds of two-to-three years due to their attractive returns over overnight funding rates, according to Shroff. ($1 = 85.8070 Indian rupees)
Mint
6 days ago
- Business
- Mint
Navigating complexities: Why the voting threshold is a major hurdle in insolvency application withdrawal
India's leading law firms such as Shardul Amarchand Mangaldas & Co, Khaitan & Co, and JSA Advocates & Solicitors have voiced concerns about the increasing difficulty in withdrawing companies from insolvency proceedings. A key hurdle is the stiff requirement for a 90% voting threshold from the committee of creditors (CoC) to approve such a withdrawal, even when a viable insolvency resolution plan is near, they said. "One of the key challenges is the requirement of a 90% voting threshold from the committee of creditors (CoC), which is often difficult to achieve," said Shardul Shroff, executive chairman at Shardul Amarchand Mangaldas & Co. Shroff was pointing to section 12A of the Insolvency and Bankruptcy Code that allows withdrawal of insolvency application against a corporate debtor only with the approval of 90% voting share of the committee of creditors, which is often hard to achieve. Shroff also noted another hurdle wherein once the insolvency proceedings are admitted, they are treated as proceedings in rem, meaning that they impact all stakeholders of the corporate debtor and not just the parties to the settlement. "As a result, even if the CoC consents to withdrawal, dissenting stakeholders such as operational creditors or minority financial creditors may object if their claims remain unpaid or unresolved." Law firms have mentioned some insolvency cases, including Byju's, and Syska LED, wherein creditors have failed to settle matters outside of the formal insolvency process. Also Read | Reform push: Insurance amendment bill heads to Parliament; changes to IBC, Companies Act will have to wait Shroff highlighted the Byju's case wherein operational creditor BCCI (Board of Control for Cricket in India) moved the insolvency court in 2024 seeking dues worth ₹158 crore. Byju's settled its dues with BCCI. The same year, however, other creditors including Glas Trust and Aditya Birla finance opposed the settlement since financial creditors did not receive their dues before BCCI, an operational creditor. On 23 October 2024 , the Supreme Court clarified the procedure for withdrawal under Section 12A and emphasized that the National Company Law Tribunal (NCLT) Mumbai bench cannot act merely as a 'post office" . "However, the Court did not lay down any clear test or criteria that the NCLT is supposed to apply if the statutory requirements for withdrawal are otherwise met. This lack of guidance can lead to legal uncertainty and add to the procedural delays, leading to erosion of value available for stakeholders," said Shroff. Today, Byju's still continues to be under the corporate insolvency resolution process (CIRP). This was after SC in May 2025 admitted appeal filed by BCCI and refused to stay the ongoing CIRP, but issued notices to key creditors Glas Trust, Aditya Birla Finance, etc. The next hearing is scheduled for 21 July, when the top court will decide whether to allow withdrawal and consider interim reliefs. Others concur. "While the 90% threshold aims to ensure consensus, it is increasingly being relied upon by courts to disallow settlements on a bilateral basis if the majority group is opposing," Kumar Saurabh Singh, a partner at Khaitan & Co who practises banking and finance restructuring and insolvency, said. Also Read: IBC's weak spot: Slow, difficult recovery from dubious pre-bankruptcy deals Bottleneck Singh noted that when such bilateral settlements were challenged by other creditors or fresh applications were filed, they caused a 'judicial bottleneck". According to an insolvency lawyer who practises in NCLT-Mumbai, the court rejected Syska LED Lights' application to withdraw the corporate insolvency resolution process initiated against them. The bankruptcy case started in October last year, when Sunstar Industries, one of the operational creditors, initiated insolvency proceedings against the consumer electricals company Syska LED Lights. On 18 March 2025, Sunstar Industries filed a section 12A application for withdrawal of CIRP after reaching a settlement with Syska LED Lights. However, financial creditors, including IDFC First Bank and State Bank of India, intervened while strongly opposing the insolvency application withdrawal. The insolvency court rejected the withdrawal application this year in March. "Given the criticality of the 12A process being the only avenue for withdrawal of a company from CIRP, commercial considerations should be paramount in the court's decision-making. Delays or any other form of judicial intervention may prove fatal," said Soumitra Majumdar, partner, JSA Advocates & Solicitors. Majumdar is in favour of a high threshold of CoC approval. "Given the definitive nature of the 12A process, the consent threshold should be high, reflective of wide acceptance by the committee of creditors. Accordingly, a 90% threshold appears to be in order". Still, commercial considerations should be allowed to be paramount while considering 12A processes, with absolute flexibilities and procedural safeguards.
