Mistrys in top three
The third spot in the maiden ranking of the dollar billionaire club of India, put together by Fortune India-Waterfield Advisors, is occupied by Shapoor and Cyrus, sons of the late Pallonji Mistry. The biggest component of their wealth is their family’s stake in Tata Sons. Now, the 18.41 cent stake owned by the Mistrys in Tata Group’s unlisted holding company is today worth ₹2.57 lakh crore ($32.35 billion), according to Fortune India-Waterfield Advisors.
The irony is that the value of Mistrys’ holding put out in the latest Rich List is substantially higher than the value sought by Cyrus or the value ascribed by the Tatas in 2020. Fortune India-Waterfield has valued Tata Sons at ₹14.04 lakh crore ($176 billion), based on its direct holdings in 15 listed group companies (including one non-group company) worth ₹12.42 lakh crore ($156 billion) and 40 unlisted subsidiaries at ₹1.62 lakh crore ($20.36 billion).
Another interesting fact is that the wealth of the coveted dollar billionaire club is equivalent to 26.67 per cent of India’s GDP. There is also the huge concentration of wealth in India Inc — the top 13 names control around 53 per cent (₹35.07 lakh crore/$440 billion) of the cumulative wealth held by the 142 billionaires, showed Fortune’s Rich List ranking.
Steel cartel probe gathers steam
The investigation arm of Competition Commission of India — DG (Investigation) — is now probing alleged cartelisation by as many as nine steel companies, including biggies such as SAIL, Vizag Steel, Tata Steel and JSW Steel. Reason: The Madras High Court had in July last year directed DG (Investigation) at CCI to look at cartelisation charges made by the Coimbatore Corporation Contractor Welfare Association, which had approached the High Court. The association had sought CBI probe into the pricing activities of the steel industry. It now transpires that the DG (Investigation) has made big inroads into the cartel matter and issued notices to the nine companies.
Rice export curbs
The Prime Minister’s Office was fully involved in the decision to impose curbs on rice exports, which was announced last week. Home Minister Amit Shah was also involved in the decision-making. A little bird says what topped the government’s concerns were inflation and the need to issue foodgrains free to those below the poverty line under the PMGKAY scheme. That also explains why the Inter-ministerial Committee has been asked to go slow on atta (wheat flour) exports, despite more applications for export permissions piling up. And no prizes for guessing why Shah took the call on allowing sugar exports over and above the 10 million tonnes export cap fixed until October 30.
Tyre cartel — NCLAT ruling soon
All eyes are now on the National Company Law Appellate Tribunal (NCLAT), as its ruling on the tyre cartel matter is expected to be completed this month. The NCLAT will Monday resume final hearing on the nearly decade old tyre cartel matter. After a prolonged legal battle before the Madras High Court and Supreme Court, the tyre cartel issue is now before the NCLAT, which is currently hearing a batch of appeals from the top five tyre companies — Apollo Tyres, MRF, CEAT, JK Tyre and Birla Tyres — and their association, ATMA.
The CCI had in February imposed a cumulative penalty of ₹1,788 crore on these five tyre companies and ATMA. Now that has been appealed against by these companies before the NCLAT, and hearings are going on.
Onam blow-up, and after
After Onam, what? Kerala is battling a familiar crisis that has come to haunt it even before the Onam Week celebrations end. Ahead of the festival, the cash-strapped State government had been reduced to scraping the bottom of the barrel, so to speak. It perforce had to tap the debt market and borrow money in more than one tranche, which was given away as cash advance and bonus to government staff and welfare doles to the eligible. The amount involved is estimated to be ₹15,000 crore.
Word has it that the government is set to announce massive cuts in spending through recourse to severe controls on the treasury.