August 28, 2000

Collection problems
The Maharashtra government’s kitty is empty, but it is increasingly obvious that its bigger problem is its inability to collect dues. The loss-making SEB is one example; it can neither collect from an industry group (the Mittals) nor a minister’s son (Vikhe Patil). It was the same with cable operators. They were not declaring correct subscriptions, but better handling would have won it the perception battle. This means some prior preparation, like that done by the I-T department before raids. Instead, the public was furious when its cheapest form of entertainment was switched off. Had it put out some numbers and initiated a public dialogue with the cable industry, people may have been more sympathetic. Another area of concern is the issue of stamp duties paid by the stock broking community. Barely half a dozen brokers are paying the required duty at the rate of Rs 1,000 per contract value of Rs 1 crore. Others are hiding behind technical interpretations. Some brokers admit that there may be trouble later, but when the governtment collect a hefty backlog, they are confident of turning the heat on through their associations. It only means that the State coffers will stay empty or ordinary citizens will pay higher taxes/user charges.

SEBI’s deputationists
Two senior officials from SEBI are to be sent on deputation to the BSE causing pandemonium among BSE officers. The officials believe that the crux of the issue is the crazy rivalry between the BSE and NSE. The NSE has a finance ministry official on deputation in its economic department, so the BSE wants deputationists from SEBI. Everything else that can and will be argued in favour of the move is mere justification; otherwise it would have been discussed more openly with a few ground rules laid down for movements from a regulator to a regulatee or vice versa. The BSE officers association in a letter to its executive director has exposed the stealth. It says that the vacancies proposed to be filled by the two officials have never been announced, their role and area of operation has not announced and officials of the exchange were not given an opportunity to compete for the posts. Interestingly, the BSE officers have equated the post of SEBI divisional chiefs with those of deputy general managers of the exchange — something that is sure to get the goat of SEBI’s officers association. Further, the BSE officers have claimed frustration, demoralisation and agitation over the exchange’s quiet move and threatened disruption to the “cordial and harmonious relations” with the management. Since the officers are only demanding transparency and a justification for the deputation, it remains to be seen whether SEBI sees the merit in their demand or collaborates with the BSE’s top management and simply forces the change.

Essar’s helicopters
It may be the most beleaguered corporate group in the country — a default on foreign loans, frequent reschedulement of Indian ones and constantly borrowing to fund cost overruns. But when it comes to style and luxury, the Essar Group continues to beat others. Most industry houses these days have private aircraft, but while the rest of them battle Mumbai’s traffic to get to the airport, Essar has obtained permission for its specially constructed helipad on the terrace of its glitzy corporate office.The only other personality in Mumbai to enjoy such a privilege is the Governor, who also occasionally allows other industrialists to use it.

Coke v/s Pillai
Over a week after Nina Pillai has served a notice on Coke, the multinational has been remained completely silent — apparently on instructions from its head office in Atlanta. Pillai had alleged malafides and coercion in getting her and her late husband Rajan Pillai to sign away their stake in JMRPO, a 1991 jv with Coke. Does this mean that Coke is willing to make a settlement? Even if Pillai does gets a fraction of her Rs 100 crore demand, the widow will be substantially wealthier.

Updated weekly.

The author's e-mail address is: suchetadalal@yahoo.com

Other columnists:

Other articles by the columnist Columnist's New Article A pointless apology? Multiple remote controls Learning about technology The market is wrong The Rs 20,000 crore question Y2K = More advances MTNL's net tariffs No wealth creation please Backdoor to advice BPL, Videocon and Sterlite Who gets the SEBI jobs? The Mayor and the RBI Governer A pie in the sky? Speeding up the Special Court The dot - con Game Vanishing company case reappears Those missing VIPs Governer takes over Against what odds? CRB going dot.com? ICICISUCKS.com No The pecking order As The angel gang Deficient disclosures? India changes? Short Memories Bankrupt Maharashtra Another Committee? ALBEM = BADLA The Lloyds example Reliance underpriced? Careless regulator The NAV game Women directors quota Rumblings at SHCIL Yeh Dil Maange More Bombay Dyeing problem A No takers for dollar returns What Federation? Insurance ordeals It On Dadiseth's trail