India's Business set-up Bottlenecks

Building a factory in India is not for the faint hearted. 

Even if a company is fortunate and manages to buy land - which, by the way, is becoming more and more difficult, expensive and time-consuming due to complex laws, people's rising expectations and local politics - that is just a start. 

A manufacturing company in India, on average, has to comply with nearly 70 laws and regulations. Apart from the multiple inspections, it has to file around 100 returns in a year, according to a 2013 report by consultancy firm Deloitte. 

Then there is the double maze of tax and labour laws that can be a big pain even in the best of times. Poor infrastructure does not help either. 

Will the NDA government, whose economic programme hinges on boosting the manufacturing sector, be able to bring about the required change? 

Will it be able to debottleneck the process of setting up and running a factory in the country so that its plan to create millions of new jobs in manufacturing sees the light of day? 

Problems in acquisition of land, delays in environmental and other clearances and infrastructure bottlenecks have taken a toll. 

In the past five years (2011 to 2015), new projects have seen a marked reduction of 44 per cent from the period between 2006 and 2010. The value of stalled projects more than tripled during the period. 

Worse, straddled with huge distressed assets, core sector companies are more concerned about avoiding default rather than making fresh investments. 

As a result, India's investment-to-gross domestic product ratio has fallen for five straight financial years now. 

The NDA government has tried to correct this through a massive increase in investments to build infrastructure. It is likely to follow this policy in the coming Budget, too.

Source -http://www.businesstoday.in/magazine/features/indias-manufacturing-hub-plan-is-in-a-host-of-problems/story/229415.html 

Prenuptial Agreements to be the Norm? - Business Standard

Prenuptial agreements in India might not be legally tenable but, increasingly, families are going for these contracts which state the assets of the bride and groom, and the compensation the woman will receive if the marriage turns sour and the couple legally part ways.

“Families are opting for prenuptial agreements to see the intentions of the parties involved, even though the contract is not legally binding,” says senior advocate Mrunalini Deshmukh, who handled divorce cases of many Bollywood celebrities including Aamir and Reena Khan and Karisma Kapoor. She adds that the document is used to tell the court the conditions that the couple had agreed upon when they got married.

It’s not only the wealthy that are drawing up these agreements. Advocate Vandana Shah recently got a couple who asked her to help them draft one such contract. They were both part of corporate world, working in middle management. When she told them it would not have any standing in a court, they said they were making it so that both were clear on the settlement terms if they part ways.

Prenuptials are popular in developed countries such as the US, Australia, France and Germany. But in India, there are Supreme Court rulings which say any contract which has marriage as an object is null and void.

Recently, Maneka Gandhi, minister for women and child development,  recommended to D V Sadananda Gowda, Minister for Law and Justice, to make Prenuptial Agreements mandatory before marriage.

The recommendation was made as many women from lower socio-economic backgrounds have to fight endless battles over alimony, marital ownership of property and assets during divorce.
Deshmukh says, on an average, divorce cases take four to five years to conclude; but many also drag on for over 15 years. She has a client, who is still fighting a legal battle since 1999.

The idea of legalising Prenuptial Agreements has many takers.

Lawyers say it will help reduce the burden of courts. It will also end husbands and wives taking undue advantage of each other and will keep their expectations in check. It will also help solve common reasons for fights or disputes, such as division of property.

Financial planners say it will be a good starting point in a marriage. When drawing a prenuptial agreement, the entire assets, liabilities, business ownerships, among other things, are listed out. This can make both parties aware of each other’s finances before tying the knot.

Even if a prenuptial agreement does not become legal in India, there are a few things every couple should follow while managing their family finances to ensure that things don’t go awry in case they part ways.

Suresh Sadagopan, a certified financial planner, says couples should keep their finances separate and contribute towards expenses in equal proportion. If the husband’s salary is Rs 1 lakh and wife’s is Rs 50,000. They can equally contribute 30 per cent of their income to family expenses.

Shah says couples should keep their bank accounts separate and all investments should be done through individual accounts. This will not only create a trail, but also make calculation of taxes easy.

When buying property, couples should also take the ownership in the asset in proportion to their contribution, Sadagopan says. If the husband is paying 70 per cent of the equated monthly instalment, he should list his share in that proportion.

Source - http://wap.business-standard.com/article/bs/prenuptial-agreements-likely-to-be-mandatory-116020400476_1.html

A Cyclists encounter with the Railway Police at Bangalore - The Logical Indian

From the #Facebook page #LogicalIndian:

#MyStory

“I have read of inhumane incidents happening in many parts of the country. But you won’t totally believe unless you encounter one. Now onward I can totally believe them.

I frequently travel to China for my official trips. One thing I always adored by Chinese people is their use of electrical or foldable bicycle which they carry with them in the subway.

This time, after coming to India I desperately started looking for such bicycle if available in India. At last, I found one BTWIN HOPTOWN bicycle at Decathlon. I immediately bought and started using it. Once I was carrying it with me on the train between the route KR PURAM to Bangalore Cantonment. I am proud of the fact that I am not the one contributing to the pollution in Bangalore.

On 9/2/2016, while exiting from Bangalore Cantonment railway station one ticket checking officer lady caught me and started demanding fine for carrying a bicycle with me. I tried to convince her, once folded it is not a bicycle at all, it weights hardly 14 kg and it is very much portable. But she insisted on asking for 6 times the fare of travel. I asked her for the railway rules regarding this and the receipt of the bill. She took my pass and made me wait for another 30 minutes and later came with an excuse that she doesn’t know the luggage rules. I was getting late and told her 6 times my fare of travel is 60 rupees and that she can have 100 rupees and let me go. But she demanded 300 rupees.

I told her even if it is 1000 rupees I will pay but I need the receipt. She presented the same excuse that she doesn’t know the luggage rules. At last, I lost my patience and started to call her corrupt. After which she slapped me, pushed me and called her police constable colleague to take me to the jail for misbehavior. He took me to the jail and started beating me. His other colleagues joined him, they undressed me and started beating me with hand, leg and sticks 5 people at a time. I was sure that I was going to die that day and only my body will be found next day. I begged them in all the possible way I can. At last, after an hour, one guy listened to my plea and asked me to pay 5000 rupees. He asked me to call any of my friends to come with 5000 rupees and then can take me back.

I called my manager Harish Haswani who came with two mutual colleagues of ours. All three had to plea to the railway police for more than an hour on my behalf as Railway police have threatened them that they will file a case against me of misbehaving with a lady officer and that I have tried to press her breast. I was very much shocked to see to what level character of a woman can fall. After too much of plea and the bribe from my colleagues they released me. The lady officer fined me 190Rs stating my bicycle weight is 40kg although it is 14kg only. Also, she fined me for ticket-less traveling though I was having the monthly pass. Also, the receipt she issued is of date 8/02/16 and not 9/02/16 on which date I travelled and the incident took place. We all were too much afraid and didn’t dare to ask her for the mistake in the receipt. All of our focus was just to save my life and get me out of there.

I am undergoing the treatment. My left hand is fractured. My friend Sarfaraz is taking care of me. I am determined never to travel by train in Bangalore again. My fold-able  BTWIN bicycle will never get used again. But at the same time, I have lost all the focus at my work. Fortunately, my mobile has done the voice recording of the entire incident. My mobile recording along CCTV camera recording at railway is enough to prove if I have done remotely any kind of misbehavior with the lady. I am determined to teach a lesson to these corrupt officials even if it cost me my life. I have written letters to all higher police authorities as well as human rights commission seeking action in this regards. They will respond but very unfortunatly as per indian goverment office time.”

And Comments thereon:


@drmsbc has replied to tweets on this issue saying that Railway police is state police and doesn’t come under railways.

https://twitter.com/drmsbc/status/698662569536417793

I will delete this post in some time since my suggestion is perhaps no longer relevant.

In the meanwhile, if you have any suggestions regarding how to approach this issue then let me know.

My original post:
-----------
The Logical Indian, could you please tweet this to @RailMinIndia
They are very prompt and they will take appropriate action.

Edit:
The summary of tweets made for this issue:
My tweet to @RailMinIndia:
https://twitter.com/amithbag/status/698599458020261888

Sidhharth (@siddhu_2011):
https://twitter.com/RailMinIndia/status/698595124578615296
(@RailMinIndia has replied to Siddharth’s tweet)

Avinash Surendran (@ashwin296):
https://twitter.com/ashwin296/status/698605652466405376

cibi s (@cibiindhu):
https://twitter.com/cibiindhu/status/698627271477870592

It looks like @drmsbc has replied to the tweets of Sidhharth, Avinash and cibi s:

“@cibiindhu @RailMinIndia @GMSWR @ashwin296 @siddhu_2011 Rly Police is state police, not under Rly. Clarification by @srdcmsbc.”
https://twitter.com/drmsbc/status/698662569536417793

So essentially it seems that they are saying that they can’t do much since Railway police is state police. Is that ticket checking lady also under Railway police and not Railway? Requesting Sidhharth, Avinash and cibi s to reply to @drmsbc and ask for clarification.
-----------

Comment #2:

Laws that were made to protect women are being used as a tool to extort money, take revenge, cry victim when a woman herself is the wrong doer and to teach a "lesson" to a man for being a man by the "empowered women". This is happening not only in metros but smallest areas around the country. While crime against Innocent and vulnerable women is happening everywhere, false accusations against innocent and vulnerable men and boys like one above is on a rise too. While there are stringent laws to take care of the former, there is little one can do in case of latter. Some time before everyone realizes the need to control this menace.

Comment #3:

#PMOIndia, Narendra Modi, Suresh Prabhu
After such incidents, do you still expect us to co-operate with the Police and have faith in these so called Law Enforcement forces in India?
Who gives them the right to even TOUCH US without any valid reason or proof? Are these people seriously the ones responsible for OUR SAFETY?
WE WILL NOT BE SUPPRESSED AND THIS NEEDS TO STOP. NOW.
#Shame

Comment #4:

Laws-

The Bangalore Metro Rail (Carriage and Ticket) Rules 2011 limit the weight of personal baggage to 15 kg. Rule 3 says: “No person shall, while travelling in metro railway, carry with him any goods other than a small baggage containing personal belongings not exceeding 60cm x 45cm x 25cm in size and 15kg in weight, except with the prior approval of the metro railway administration.” The rules also prohibit carrying explosive, inflammable, and poisonous substances.

The Metro Railway (Operation and Maintenance) Act, 2002, imposes fines and in some cases jail sentences for offences committed on the metro. Anyone indulging in sabotaging the train or maliciously hurting or attempting to hurt other passengers while travelling in the metro can face imprisonment up to 10 years. Pasting posters or drawing graffiti on the walls of stations or trains is punishable by a fine of ₹1,000 or imprisonment for up to 6 months. Travelling in an inebriated state or creating nuisance in the train is punishable by a ₹500 fine. Passengers are monitored at security checkpoints and those that are causing trouble, heavily drunk, or carrying forbidden items are not permitted to board. Spitting on the metro premises is punishable by a fine of ₹100.

Comment #5:

I hope you are innocent fight back and get back to work and train travel with your bicycle this time with any rule copy. If you are innocent nothing should stop you should fight back even if you dont have enough evidence . Expose them to society and put them to shame .believe your friends and family know your nature have confidence. We are all with you.

Reproduced here for Academic information.

Source : #Facebook #TheLogicalIndian

Burberry faces U.S. lawsuit accusing it of deceptive price tags

British luxury fashion brand Burberry is to face a class action lawsuit in the United States, claiming it used misleading price tags at its outlets stores to fool shoppers into believing they were getting big bargains.

The company, which specifically manufactures some of the products for its outlet stores, is accused of intentionally presenting false price information on products that have never been sold in its retail stores to mislead customers.

Outlet stores typically sell excess or old stock at a discount, although some retailers also manufacture goods specifically for them.

The lawsuit in the latest in a long line of cases accusing luxury retailers of marking up goods sold in outlet stores with made-up manufacturer prices.

Last year, U.S. retailer Michael Kors had agreed to pay $4.88 million and change its sales practices to settle a similar class action lawsuit after it was accused of creating an "illusion" of deep discounts.

(Reporting by Li-mei Hoang)

Source - http://mobile.reuters.com/article/idUSKCN0VL0NT

P&H HC - Foreign Citizens covered under MWPSC Act

The Punjab and Haryana High Court has held that foreign citizens living in India are also entitled to benefits conferred under Maintenance and Welfare of Parents and Senior Citizens Act. Justice H.S. Siddhu made this observation in Hamina Kang vs. District Magistrate.

Challenging an order issued under the Act, the petitioner had contended that an application can be filed only by a “Senior Citizen” which term as per its definition in Section 2(h), means a person who is a citizen of India and is of the age of sixty years or above.

Rejecting such a contention the Court observed that there is no requirement for the parent to be a citizen of India.

 A senior citizen is a person who is a citizen of India and is of the age of sixty years or more. 

Since the requirement of being a citizen of India is only a part of the definition of a senior citizen, a father or mother, whatever his or her nationality would be a `parent’. Thus, a person who is a parent would be entitled to the benefits of the Act which are conferred on parents, irrespective of his or her age or nationality, the Court said. 

The Court also observed that the Rules made under the Act can be invoked by a `Parent’, even though he may not be a `Senior Citizen’ as defined in the Act.

The court further observed that the applicants are not natives of U.S and were Indian Citizens by birth. “They have had their education from India, getting the Engineering and MBBS degree respectively from Punjab Engineering College, Chandigarh and Government Medical College Amritsar. Respondent No. 2 served the Indian Army for ten years from 1959 to 1969 and went to USA after getting discharge from the Army. It is thereafter that they acquired U.S. Citizenship. Having retired from their jobs, they now want to settle in India. They are presently registered as `Overseas Citizens of India’. They cannot be denied the benefit of the 2007 Act”, the Court.

Source - http://www.livelaw.in/foreign-citizens-living-in-india-entitled-to-benefits-conferred-under-maintenance-and-welfare-of-parents-and-senior-citizens-act-punjab-and-haryana-hc/

Ordinance promulgated to amend the Enemy Property Act, 1968

The Enemy Property (Amendment and
Validation) Ordinance, 2016 was promulgated on January 7, 2016.

 The Ordinance amends the Enemy Property Act, 1968 and the Public Premises (Eviction of Unauthorised Occupants)
Act, 1971.
After the India-Pakistan wars of 1965 and 1971, the central government took over the properties (called ‘enemy properties’) of those who migrated from India and became citizens of Pakistan (i.e., ‘enemy’). These properties were vested in the office of the ‘custodian of enemy property’, instituted under the central government.
 The 1968 Act regulates rights over these enemy properties, and the powers of their custodian.
In July 2010, an Ordinance was introduced to amend the Act (subsequently lapsed).

 This Ordinance clarified that the office of the custodian will retain its power over enemy properties, even after the enemy dies, or if the legal heir is an Indian citizen, or the enemy changes his nationality, etc.
The 2016 Ordinance also provides for the same.

In addition, it amends the Act to broaden the definition of enemies. For instance, the Act provided that a citizen of India cannot be considered an enemy. Under the 2016
Ordinance, legal heirs of enemies (even if they are Indian citizens) will be considered enemies.

This will mean they will not be able to inherit enemy properties, or enjoy any benefits arising from them.

The 2016 Ordinance also modifies powers of the custodian of enemy property. For example, it adds the power to fix and collect rent, and evict unauthorised occupants from such properties.

For the purpose of allowing regulation of
unauthorised occupants in case of enemy
properties, the Ordinance also makes some
amendments to the 1971 Act.

The 2016 Ordinance has retrospective effect
from the date of commencement of the 1968 Act. This is to ensure that transfers of enemy property that had taken place before its promulgation are deemed ineffective if they violate its provision. All such properties will continue to vest with the custodian.
For a comparison of the two Ordinances, please see here
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Draft Rights of Transgender Persons Bill, 2015 released - PRSIndia

Ministry of Social Justice and
Empowerment released the draft Rights of
Transgender Persons Bill, 2015 in January
2016.

 The draft Bill seeks to ensure overall
development and welfare of transgender persons.
A transgender person is defined as a person whose gender does not match with the gender assigned to them at birth, irrespective of whether they have undergone sex reassignment surgery or hormone therapy, etc.

Key provisions of the draft Bill include:
 Certificate of identity: A certificate
indicating that a person is a transgender
person will be issued by a state level
authority, on the recommendation of a
district screening committee (comprising
District Magistrate, psychologist,
psychiatrist, representatives of the
transgender community, etc.). The
certificate may be used to indicate gender on official documents, like ration card and
Aadhaar card. Transgender persons will
have the option to identify as ‘man’,
‘woman’ or ‘transgender’ in all such cases.
 Rights of transgenders and duties of
government: The central and state
governments must take steps to ensure that
transgender persons enjoy right to equality,
Land protection from discrimination. The
government must also ensure that
transgender persons have accommodation,
protection from torture, etc.
 Health: The central and state governments must take steps to provide health facilities to transgender persons including separate HIV  surveillance centres, free of cost sex
reassignment surgeries, etc.
 Education: Educational institutions funded or recognised by the government will have to admit transgender students without discrimination, provide accommodation and necessary support.
 Employment: Public or private
establishments (including companies,
unions, factories, etc.) will be prohibited
from discriminating against transgender
persons in matters related to employment
including recruitment and promotion.
Further, transgender persons may be
declared a Backward Class so that they can
be entitled to reservation under the ‘Other
Backward Class’ category.
A private member Bill related to rights of
transgender persons was passed by Rajya Sabha in April 2015, and is currently pending in Parliament.