Category: Corporate

In a case that is seen to have a significant impact on restaurant chains and bakery businesses as well as several industries that rely on the classification of food services under the goods and services tax, the Bombay High Court has said that for now no coercive action will be initiated against Mad Over Donuts by the tax authorities on the disputed classification.

The Bombay High Court has also granted the petitioner, Mad Over Donuts (Himesh Foods), the liberty to approach the bench in case any recovery actions are taken by the GST department. In its recent hearing, the Court has also directed the tax department to file its response by March 17.

The matter is scheduled for further hearing on March 24. The case pertains to notices for GST sent to Himesh Foods as well as several other donut and bakery chains seeking 18% GST on sale of donuts and bakery items. The challenge arose as these chains contend that GST is to be paid at 5 per cent as the sale of these products fall under restaurant services. The case is being heard by a bench comprising Justice BP Colabawalla and Justice FP Pooniwalla on whether the supply of donuts falls within the ambit of restaurant services under Service Accounting Code (SAC) 9963 or should be categorised as a bakery product subject to separate tax treatment under the Goods and Services Tax (GST) framework.

Representing the petitioner, Mad Over Donuts (Himesh Foods), Abhishek A Rastogi contended that the supply of food or other edible articles qualifies as a composite supply of services under the Central GST Act. He also pointed out that the relevant GST rate notifications explicitly define restaurant services to include food supplied at restaurants, eating joints, messes, and canteens, whether for consumption on the premises or as takeaway. He also argued that official circular supports this interpretation by confirming that takeaway services should be classified as services and taxed at 5 per cent.

The Bombay High Court is also looking into another crucial aspect as part of the case on the issue of multiplicity of proceedings across different territorial jurisdictions. The bench examined whether a centralized show-cause notice (SCN) issued by the Directorate General of GST Intelligence (DGGI) suffices or whether separate notices need to be issued for each GST registration.

The Bombay High Court has granted a temporary reprieve for former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and five other officials by staying a special court's directive to file a First Information Report (FIR) concerning alleged stock market fraud.

The High Court, presided over by Justice Shivkumar Dige, found that the special court had issued its order without detailing any specific roles for the accused. "Hence, the order is stayed till next date. Four weeks time is given to the complainant in the case (Sapan Shrivastava) to file his affidavit in reply to the petitions," stated the High Court, granting Buch and her co-petitioners temporary relief in their ongoing legal battle. The special court's order for an FIR, which involved three current SEBI directors and two Bombay Stock Exchange (BSE) officials, was based on a complaint alleging financial fraud, regulatory lapses, and corruption dating back to a company's listing in 1994.

The complaint, filed by media reporter Sapan Shrivastava, has been dismissed by SEBI as frivolous, with the regulatory body labelling Shrivastava a "frivolous and habitual litigant." "The applicant is known to be a frivolous and habitual litigant, with previous applications being dismissed by the court, with imposition of costs in some cases. SEBI would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters," SEBI noted in its statement, underscoring its intention to contest the special court's decision.

The Anti-Corruption Bureau (ACB) court's initial order was criticised for suggesting "prima facie evidence of regulatory lapses and collusion, requiring a fair and impartial probe," without allowing SEBI or BSE the opportunity to present their facts. BSE also contended that the officials named were not in their positions at the time of the alleged fraud, further questioning the basis of the allegations.

"Even though these officials were not holding their respective positions at the relevant point of time, the court allowed the application without issuing any notice or granting any opportunity to SEBI to place the facts on record," SEBI stated, highlighting procedural oversights in the court's handling of the case.

The High Court's intervention comes after SEBI challenged the ACB court's directive, with Solicitor General Tushar Mehta representing the SEBI officials in court. Shrivastava has been given a four-week deadline to submit an affidavit in response to the petitions, as the legal proceedings unfold against a backdrop of scrutinised judicial processes in corporate governance and regulatory oversight.

The Oberoi Group, managed by EIH Limited, will introduce two new resorts in Rishikesh.

The projects include an 80-key luxury Oberoi resort carrying the "vilas" branding and a 120-key five-star hotel under the Trident brand. The resorts will be situated on a vast 60-acre site bordered by the Ganges River, offering its guests a secluded retreat. These properties are owned by Devprayag Ganges Resorts and developed by Jamuna Hotel Enterprises, both part of The Ladhani Group. Renowned architect Bill Bensley will design the resorts that will offer luxury amid Rishikesh's breathtaking beauty. This development is a segment of EIH Ltd.'s ambitious growth strategy. It had previously revealed plans for 19 additional properties, including hotels and luxury vessels, by 2029.

"We are beyond excited to collaborate with The Oberoi Group, a brand synonymous with excellence in hospitality. Rishikesh is a destination of immense cultural and natural significance," stated SN Ladhani, Chairman of The Ladhani Group. Meanwhile, EIH Ltd recently posted record Q3 performance, with standalone revenue reaching Rs 722 crore and consolidated revenue achieving Rs 831 crore. Standalone and consolidated EBITDA have climbed to Rs 330 crore and Rs 388 crore, respectively.

Arjun Oberoi, Executive Chairman of The Oberoi Group, stated that the two resorts reflect the group’s unwavering commitment to expanding our presence in remarkable destinations. The construction of these resorts is slated to commence in early 2026. Vikram Oberoi, CEO & MD of The Oberoi Group, added that their goal is to create extraordinary hotels with strong financial performance. The Oberoi Group, established in 1934, manages 31 hotels and two Nile Cruisers across seven countries under the luxury 'Oberoi' and five-star 'Trident' brands.

Bhavish Aggarwal-led Ola Electric Mobility, backed by SoftBank Group, is reportedly set to lay off more than 1,000 employees and contract workers in a bid to tackle escalating losses.

The layoffs are expected to span departments such as procurement, fulfilment, customer relations, and charging infrastructure. This move marks the second round of workforce reductions in less than five months, following the company’s decision to let go of 500 employees in November.

Ola’s decision comes amidst a 50 per cent rise in losses for the December quarter and scrutiny from India's market regulator and consumer protection authority.

According to a report in Bloomberg, the latest wave of layoffs represents over a quarter of Ola's total workforce of approximately 4,000, which includes contract workers not publicly disclosed. As part of a restructuring effort, Ola is automating sections of its customer relations operations. An official statement from Ola stated, “We have restructured and automated our front-end operations delivering improved margins, reduced cost, and enhanced customer experience while eliminating redundant roles for better productivity.”

This overhaul has also impacted front-end sales and service staff in its showrooms and service centres, the report added. Ola Electric’s shares have plummeted by over 60 per cent since its initial public offering in August.

In February, Ola sold over 25,000 units, which was significantly below its target of 50,000 units, a benchmark set for achieving Ebitda breakeven. Adjustments with vendors have also affected vehicle registrations, as the company seeks to optimise costs and efficiencies. In response to service-related complaints, Ola Electric has significantly expanded its presence by adding 3,200 outlets in December. This expansion was part of a strategy to address customer dissatisfaction, which had reached around 80,000 complaints in a month.

Agristo Masa Pvt Ltd, a joint venture between Masa Global Food Pvt Ltd (part of Wave Group) and IMSTO NV, Belgium (holding company of Agristo NV, Belgium), announced an additional investment of Rs 750 crore in its potato processing unit in Bijnor.

The company aims to uplift the agricultural landscape of western Uttar Pradesh and empower local farmers, who have already seen their income levels rise by 50 per cent over the past three years. Since its inception in July 2022, the Bijnor plant has transformed potato cultivation in the region, doubling productivity from 17 tonnes per hectare to 32 tonnes per hectare — one of the highest yields in India. With this fresh investment, the total capital expenditure in the plant will surpass Rs 1,000 crore, ensuring sustainable growth and livelihood opportunities for thousands of farmers.

Over 2,500 farmers are expected to benefit from the expansion, adding to the 500 who have already been positively impacted by the facility’s interventions. Agristo Masa has been encouraging farmers of Bijnor and its surrounding districts like Moradabad and Hapur, known for sugarcane cultivation, to cultivate potatoes. The farmers are being given buyback options, pesticides, seeds and fertiliser by the company.

The Bijnor plant currently caters to both domestic and international markets, including North America, the Middle East, Southeast Asia, and Japan. Initially set up with an investment of ₹250 crore for a potato flakes facility, the new investment will enable the installation of a French fries production line, further enhancing the plant’s output and market reach. Speaking at the groundbreaking ceremony, Manpreet Singh Chadha, Chairman of Wave Group, emphasized the importance of diversifying crops beyond sugarcane and equipping farmers with modern technologies. “We aim to empower the farmers and diversify their cash crop beyond sugarcane. We have helped these farmers to double their potato output with the help of new technologies. Their income has increased by 50 per cent over the last three years,” he stated.

Kristof Wallays, Director of International Expansion, Innovation, and Sustainability at Agristo, highlighted the collaboration between Indian and Belgian expertise. “The Bijnor plant is a testament to how results can be achieved when vision and technical expertise are combined. Partnering with Masa Global Food has allowed us to contribute meaningfully to India’s rapidly evolving agriculture and food processing sectors while ensuring the development of all stakeholders. Next to the expertise of Indian farmers, we can rely on the expertise of several other Belgian companies, such as Vyncke through their Indian venture ForbesVyncke and AVR, specialised in harvesting machines,” he said.

The event saw the presence of distinguished dignitaries, including Princess Astrid of Belgium, Uttar Pradesh’s Finance Minister Suresh Kumar Khanna and Chief Secretary Manoj Singh. Also in attendance were Belgian and Indian government representatives, alongside members of the Belgian economic mission to India. Matthias Diependaele, Minister-President of the Government of Flanders, hailed the expansion as a symbol of strong Indo-Flemish relations and Belgium’s commitment to India’s growth story. “Flanders is known for setting the stage for groundbreaking innovations. The Indian facility of Agristo Masa is equipped with cutting-edge Flemish technology. This new investment not only strengthens economic growth in India but also paves the way for further innovation. This expansion will further scale the production and deepen the collaboration with local farmers,” he said.

A special court in Mumbai has directed the Anti-Corruption Bureau (ACB) to register an FIR against former SEBI chairperson Madhabi Puri Buch and five other officials over alleged stock market fraud and regulatory violations.

"There is prima facie evidence of regulatory lapses and collusion, requiring a fair and impartial probe," special ACB court judge Shashikant Eknathrao Bangar said in his order on March 1. The court has decided to monitor the investigation and has sought a status report within 30 days.

It noted that the allegations reveal a cognisable offence, necessitating a formal probe. The order also criticized the inaction of law enforcement agencies and the Securities and Exchange Board of India (SEBI), stating that judicial intervention was required under the Criminal Procedure Code (CrPC),as per a PTI report.

The complaint alleges large-scale financial fraud, regulatory violations and corruption. It alleged that a company was fraudulently listed on the stock exchange with the active involvement of regulatory authorities, particularly SEBI, bypassing compliance requirements under the SEBI Act, 1992. The complaint further alleges that SEBI officials failed in their duty, facilitated market manipulation, and enabled corporate fraud. Despite repeated complaints to police and regulatory bodies, no action was taken, the complainant claimed. After reviewing the case, the court directed ACB Worli, Mumbai Region, to register an FIR under relevant provisions of the IPC, Prevention of Corruption Act, SEBI Act, and other applicable laws.

The Securities and Exchange Board of India (SEBI) is preparing to challenge an order by the ACB Court in Mumbai, which directed the filing of an FIR against former chairperson Madhabi Puri Buch, three current whole-time members, and two officials of BSE. In a statement released on March 2, SEBI dismissed the complaint as coming from a “frivolous and habitual litigant” and asserted that it would take legal action to contest the ruling. BSE in a statement said the named company, Cals Refineries Ltd., was listed in 1994. The officials named in the application were not in their respective positions at the time of listing and were not connected with the company at all. The application is frivolous and vexatious in nature.

"The Honourable Court has allowed the application without issuing any notice or granting any opportunity to BSE to place the facts on record. BSE is initiating necessary and appropriate legal steps in this regard. As a responsible market institution, BSE remains committed to upholding regulatory compliance and ensuring transparency," the statement added.

The Securities and Exchange Board of India (SEBI) has levied a fine of Rs 5.05 crore on the Indian Clearing Corporation Ltd (ICCL) for various violations.

The violations included submitting the Network Audit Report to SEBI without Governing Board comments and not maintaining correct and up-to-date asset inventory, as well as incorrectly classifying mission-critical servers. SEBI's Quasi Judicial Authority, G Ramar, referenced the Dr. Bimal Jalan Committee's report on ‘Review of Ownership And Governance Of Market Infrastructure Institutions (MIIs)’ from November 2010 in the order issued on February 25. ICCL, established in 2007 as a wholly owned subsidiary of BSE Ltd, underwent an inspection by SEBI for the period of December 1, 2022, to July 31, 2023. During the inspection, non-compliance with key regulatory provisions, particularly in cybersecurity and disaster recovery, was noted.

The main allegations include:

* Failure to adhere to the Cyber Security and Cyber Resilience Framework

* ICCL neglected to maintain an up-to-date inventory of IT assets, including software assets and criticality classification.

* Despite conducting the required audit, ICCL did not promptly address cyber audit observations within the specified timeframe. 

* Failure to meet System and Network Audit Requirements ICCL submitted the Network Audit Report to SEBI without input from management or the Board.

While the ICCL Board later claimed to have resolved all audit observations, SEBI discovered unresolved IT asset inventory issues. Non-compliance with Business Continuity Plan (BCP) and Disaster Recovery (DR) Guidelines: The configuration of primary servers (PDC) and disaster recovery servers (DRS) did not align, in violation of SEBI's requirement for a one-to-one correspondence. The committee report stated: "These institutions (i.e., stock exchanges, depositories and clearing corporations) are systemically important for the country’s financial development and serve as the infrastructure necessary for the securities market. These institutions are collectively referred to as Market Infrastructure Institutions (MIIs)… They are, therefore, ‘vital economic infrastructure’.

The recent financial crisis has shown the importance of financial institutions to economic stability."

The regulator asked ICCL to pay the penalty within 45 days of receiving its order.

Reliance Industries Ltd; (RIL) Chairperson Mukesh Ambani said that the conglomerate would quadruple its investment to Rs 50,000 crore over the next five years. He said that they would establish an artificial intelligence data centre, world-class hubs of compressed biogas, mega food park, a seven-star Oberoi Hotel, and double the number of Reliance Retail stores.

“Reliance will establish an AI-ready Data Center in Assam. With this, students will benefit from AI-assisted teachers. Patients will benefit from AI-assisted doctors. Agriculture will benefit from AI-assisted farmers. And AI will help Assam’s youth to learn from home and earn from home,” said Ambani in the Advantage Assam 2.0 Investment and Infrastructure Summit. Ambani said that in the previous summit in 2018, Reliance had committed to an investment of Rs 5,000 crore in the state but it was buoyed to Rs 12,000 crore.

Reliance will make Assam a hub of clean and green energy, including nuclear energy in line with the government’s new policy. “Reliance will build two world-class hubs of Compressed Biogas, or CBG, over wasteland in Assam. These will produce 8 lakh tonnes of clean biogas annually, enough to fuel 2 lakh passenger vehicles every day,” he said.

The conglomerate will also set up a Mega Food Park, hence adding value to the abundant agricultural and horticultural produce of Assam. “We have already set up a world-class bottling plant in Assam for Campa and an independence range of packaged drinking water,” said Ambani. Reliance will also double the number of Reliance Retail stores in the country from around 400 to over 800 stores in the next five years, he said. “To boost the high-end hospitality economy in Assam, Reliance will build a luxurious, seven-star Oberoi hotel in the heart of the state,” he said. These five initiatives will create tens of thousands of direct and indirect employment opportunities for the youth in Assam.

Reliance Foundation, with its ‘Swadesh’ stores, would collaborate with the state government to promote ‘Green Gold’ or bamboo, and the centre of the famous silk industry, Sualkuchi. Ambani said that Prime Minister Narendra Modi brought Assam and the Northeast from the periphery to the centre of India’s developmental map, heralded a new era of connectivity revolution, and made technology the main driver of development in the state.

Adani Group has disclosed a total tax contribution of ₹58,104.4 crore for the financial year 2023-24, marking a 24.7% increase from ₹46,610.2 crore in FY23.

The figures were released as part of the group's Tax Transparency Reports, underscoring its commitment to governance and accountability.

The reports cover tax contributions from seven listed entities, including Adani Enterprises, Adani Ports & SEZ, Adani Green Energy, Adani Energy Solutions, Adani Power, Adani Total Gas, and Ambuja Cements. Additionally, tax data from NDTV, ACC, and Sanghi Industries—held by these companies—is included. Adani Group has disclosed a total tax contribution of ₹58,104.4 crore for the financial year 2023-24, marking a 24.7% increase from ₹46,610.2 crore in FY23. The figures were released as part of the group's Tax Transparency Reports, underscoring its commitment to governance and accountability.

The reports cover tax contributions from seven listed entities, including Adani Enterprises, Adani Ports & SEZ, Adani Green Energy, Adani Energy Solutions, Adani Power, Adani Total Gas, and Ambuja Cements. Additionally, tax data from NDTV, ACC, and Sanghi Industries—held by these companies—is included.

Adani Group stated that voluntary tax disclosures aim to enhance transparency, build stakeholder trust, and align with global best practices. The full reports are available on each company’s website.

Warren Buffett’s Berkshire Hathaway delivered another record-breaking year, with operating profit surging 27% to $47.44 billion in 2024, up from $37.35 billion the year before.

The company’s strong performance was driven by gains in insurance underwriting and investment income. The fourth quarter was particularly strong, with operating profit jumping 71% to $14.53 billion, or about $1,010 per Class A share. Net income for the quarter reached $19.69 billion, boosted by gains in Apple, American Express, and other equity holdings.

For the full year, Berkshire’s net income totaled $89 billion. Buffett highlighted the company’s significant tax contributions, revealing that Berkshire paid $26.8 billion to the US government in 2024 — more than any other corporation, including trillion-dollar tech firms.

This amounted to 5% of all corporate tax revenue collected in the country. The Oracle of Omaha also revealed a major shift in Berkshire’s portfolio: Apple is no longer its largest holding. Despite Apple’s stock rising 30% in 2024, Berkshire’s stake in the tech giant fell by over $104 billion, making American Express its top holding.

Looking ahead, Buffett reaffirmed his preference for stocks over bonds, stating that Berkshire’s massive $334.2 billion cash reserve will be deployed into equities rather than fixed-income investments. Warren Buffett started buying Berkshire Hathaway stock in 1962 for just $7.60 per share. Over the decades, his investment acumen and refusal to split the stock turned it into the world’s most expensive share.

On Friday, Berkshire’s Class A stock closed at a staggering $718,750, while its more affordable Class B shares traded at $478.74. To mark his 60 years at the helm, Buffett is offering shareholders a chance to purchase a special anniversary book at the annual meeting, featuring untold stories and lessons from Berkshire’s history.