Make public RBI advisory note issued to ICICI: CIC

The Central Information Commission has directed the Reserve Bank of India to disclose an advisory note it issued to ICICI Bank for alleged violation of any RBI guidelines or for contravention of the provisions of money laundering and foreign exchange acts.

The case relates to an RTI application filed by S S Vohra, who had sought to know details of such advisory notes issued by the apex bank to Patna and Hong Kong branches of ICICI Bank.

ICICI Bank has objected the disclosure of the information citing three exemption clauses of the RTI Act section 8(1) (a), (d) and (e).

These section exempt disclosure of information which can -- prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the state, relation with foreign state or lead to incitement of an offence, is related to trade secrets and commercial confidence and is held in fiduciary capacity.

During the hearing, Vohra said the Finance Minister had made a written statement in Parliament that Patna branch of ICICI Bank Limited had opened some fictitious accounts for alleged fraudsters for which an advisory note was issued to it in December 2007.

Chief Information Commissioner Satyananda Mishra said there was "no merit in the contention that the advisory note issued by the RBI to the Bank in the present case will, by any stretch of imagination, fall under exemption clauses" cited by the bank

Rejecting the claims of ICICI Bank that such information may be personal in nature to customers and is held in fiduciary capacity by it, Mishra said opening of fraudulent accounts in a commercial bank is a grave concern and a major setback to financial system of the country.

"It would be rather too audacious on the part of a bank to say that it will not divulge the details of such fraudsters and scammers because there happens to be bank-customer relationship which is fiduciary in nature," Mishra said in his order.

Mishra said fraudsters, who are part of illegal activities not only need to be penalised in accordance with law but their "fraudulent dealings must also be thrown split wide open in the daylight" to make others careful.

The Reserve Bank of India counsel submitted before CIC that during inspections, if RBI finds that some bank is not functioning in accordance with its guidelines and norms, then it exercises two options -- in cases of "extreme gravity" penalises the bank and in matters of "some concerns but not grave enough" it may issue an advisory to the bank.

Mishra opined that instead of protecting fraudsters under the Bank-Customer contract, each and every bank must proactively divulge details such as account number, account holder's name, PAN/TAN Cards used, address used etc in order to warn other entities not to be duped and uphold the principles of transparency, rule of law and the guidelines set out by the RBI itself.

ICICI Bank had earlier challenged the orders of the CIC to the RBI in this regard before the Bombay High Court which sent the matter back to transparency panel with directions that ICICI Bank should also be heard.

Lupin gets greedy, expects 14-15 launches this year

With a string of news coming from drug firm Lupin , the company further expects about 14 to 15 launches in the course of this year. Company’s CFO, S Ramesh tells CNBC-TV18 that the company has a pipeline of over 150 drugs that await approval for the American market from the US Food and Drug Administration (FDA).
Lupin had got a nod from the US health regulators yesterday to market generic levofloxacin tablets that are used for the treatment of bacterial infections, in the American market. “There is intense competition in the product. Though the revenues from this used to be priced at 1.3 billion; there has been tremendous price erosion in that drug,” said Ramesh. He said it is going to be a marginal product and believes there will be about six to sever players.
Lupin also partnered with Hyderabad-based Natco Pharma for a generic version of Lapatinib Ditosylate tablets of 250 mg strength, used for the treatment of breast cancer. “ Natco is the first to file for it and we are helping them to distribute in America . It would add to the bottom-line over a period of time,” he said.  Ramesh also revealed the drug would be worth USD 130 million.

Euro Stalls As Markets Brace For Next Greek Hurdle

LONDON (Dow Jones)--Currency markets breathed a collective sigh of relief after the new cabinet of embattled Greek Prime Minister George Papandreou won a confidence vote late Tuesday but are now braced for the Greek parliamentary vote on crucial austerity measures next week.

Members of parliament must pass stringent measures worth some EUR28 billion before Greece gets a EUR12 billion lifeline from the European Union and International Monetary Fund. Approval must come by June 30 so that Greece is ready for a meeting of euro-zone finance ministers scheduled July 3. Much can happen by then. The confidence vote went along party lines as members of Papandreou's Panhellenic Socialist Movement, better known as PASOK, were eager to stave off early elections but they may not be as quick to say 'yes' to the raft of tough measures given widespread public protests in Greece.

The euro rose to as high as $1.4435 against the dollar after the parliamentary vote late Tuesday, a one-week peak, but has since eased back to a touch below $1.44.

While some prophets of doom see widening protests in Greece as reason to doubt the resolve of Greek MPs, there is still a widespread belief in the market that Greece will pull through this battle.

"The $1.40-$1.50 range will hold and we're in the middle of that now. I'm quite sure Greece will get what it wants. The euro will only plummet if the problem gets so bad that the survival of the euro is at stake. I don't see that happening," said Steven Barrow, currency strategist at Standard Bank.

Analysts at BNP Paribas echoed that view. "It would seem perverse for MPs to vote in favour of the new cabinet last night only to vote down the most important piece of legislation associated with that same cabinet a week later," they said in a research note.

There's no denying though that at this stage the euro is struggling to build on its gains since the Greek confidence vote. It seems the uncertainty dogging the single currency has simply moved on to the next milestone: the austerity package vote, said one trader.

That view was echoed elsewhere. Analysts at Barclays Capital, meanwhile, said that investors appear to be aware of the risks facing the euro, but for now are willing to sell dollars..

Smaller cities attract large realtors: CRISIL Research

CRISIL Research has come out with its report on real estate. According to the research firm, Price stability and growth prospects of smaller cities are attracting large real-estate developers. The developers are diversifying from metro cities with an eye on future growth.

Price stability and growth prospects of smaller cities are attracting large real-estate developers. The developers are diversifying from metro cities with an eye on future growth. A recent report released by CRISIL Research, titled ‘Real(i)ty Next: Beyond the Top 10 Cities of India’, estimates the sales of new residential apartments in 10 such smaller cities at around Rs 180 billion in 2012.

The study details the planned supply, the expected demand and the outlook for prices in 65 submarkets across the 10 cities: Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow, Nagpur, Surat, Vadodara and Visakhapatnam. Almost 354 million sq ft of supply has been planned in these cities over the next three years.

The study finds that the smaller cities offer better price stability and demand growth. It foresees prices rising in seven of the smaller cities. In contrast, prices are likely to increase only in four of 10 large cities–Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, National Capital Region and Pune.

Affordability in smaller cities is greater, as prices have not risen as much as in the large cities. Prices increased only by 10-12 per cent in the smaller cities over the two years up to April 2011. In contrast, prices rose by 25-30 per cent in the large cities.

“The proportion of buyers taking home loans is relatively lesser in these smaller cities. A gradual increase in penetration of home loans would boost demand. Moreover, a shift in preference from independent houses to apartments will also support volumes,” said Prasad Koparkar, Head–Industry and Customised Research, CRISIL Research.

The growth prospects in the smaller cities are attracting large developers with multi-city presence. A few large developers already have a presence in Bhopal, Lucknow, Indore, Jaipur, Nagpur and Coimbatore. Many of the developers are building land banks in these cities, says CRISIL Research report...