• DIPP recommends changes in FDI norms for real estate
• Taxing liaison offices: Revenue to move HC
• Ambani brothers’ companies figure in parliament
• Unitech shelves 2IT parks
• Maha raises property registration charges
• RBI issues guidelines for safe online transactions
• According to sources, Department of Industrial Policy and Promotion (DIPP) has recommended relaxation in foreign investment rules in the real estate sector in a bid to facilitate cash-strapped realtors get overseas funds. DIPP is backing changes in rules to facilitate FDI in real estate projects that are not FDI-compliant. DIPP members who are part of the Foreign Investment Promotion Board (FIPB) are learnt to be of the view that in light of the current liquidity crunch, some leeway was required for the sector. The DIPP has directed that the matter be examined expeditiously. DIPP is also examining the approach to be adopted in case of requests for receiving FDI by real estate companies that are engaged in various projects, not all of which are FDI-compliant according to Press Note 2 (2005) and which cannot be hived off. (BS)
• Revenue department has decided to challenge an Income Tax Appellate Tribunal’s (ITAT) ’s December 24 ruling that liaison offices of foreign firms operating in India cannot be termed as permanent establishments (PEs). The ITAT ruling came in the case of Mitsui and Company, which has investments in various sectors in India, including machinery, chemicals, energy, lifestyle, iron and steel, information technology and food products. The IT Department had attributed 50 % of the income Mitsui earned from its Indian operations to the liaison office, which it termed a PE, for assessment year 2002-03. (BS)
• SEBI is learnt to have received complaints of insider trading by Mukesh Ambani-controlled Reliance Petroleum (RPL) and 18 other companies in the past three years. Anil Ambani-promoted Reliance Infrastructure (Rel Infra) is also learnt to have violated overseas borrowing and foreign exchange rules by investing funds raised abroad in the domestic capital market. The Enforcement Directorate (ED) is learnt to be now examining the violation for necessary action. (BS)
• India’s second-largest real estate developer Unitech has dropped plans to develop 2 of its 6 IT parks in the face of slump in demand from the IT industry. At least 38 %, or 8.3 million square feet, of its projected commercial space of 21.4 million square feet in its six parks will thus remain indefinitely on hold. The two proposed parks, one in Gurgaon and the other in Noida, have not yet attracted any leasing commitment from potential clients. (BS)
• According to sources, the Maharashtra govt has fixed a flat rate of 1 % for registration of all properties, irrespective of their market value. Earlier, one had to pay a maximum of Rs 30,000 as registration charges irrespective of the market value of the property. Under the new rules, a purchaser of an apartment worth Rs 1 crore will have to shell out registration charges of Rs 1 lakh as against the earlier charges of Rs 30,000. The move is aimed at garnering more revenues for the government, which is facing a financial crunch due to the ongoing recession, implementation of the Sixth Pay Commission and loan waiver to farmers. (BS)
• Reserve Bank of India (RBI) has said that commercial banks have to set up additional security systems for validating all online credit card transactions from 1 August. RBI said it would issue detailed guidelines later. It has also directed banks to issue online alerts to cardholders for all “card not present” transactions that are worth more than Rs5,000. (Mint)
