Russia rejects tax sops to ONGC subsidiary

India had also sought to include Imperial Energy fields in the list of the fields where produced oil is subject to a reduced rate of export customs duty. Reuters

Putin is to visit New Delhi on Monday for the 13th annual bilateral summit and New Delhi was hoping the high taxes on oil produced by Imperial Energy will be sorted out before that, sources privy to the development said.

ONGC Videsh Ltd, the overseas arm of the state explorer which had in 2009 acquired Imperial Energy for $2.1 billion, says high taxes mean its gets only $19-20 per barrel at an oil price of $90-100.

This nominal net back is generated from the exploratory and production efforts made in the harsh conditions of West Siberia, from where a meagre 13,803 barrels per day of output has to be transported through 5000 kilometres of pipelines.

This is hardly enough to cover the operational expenditure, it feels. The Russian Government, in the last three years of ONGC’s presence has gained about half a billion dollar in taxes. Sources said Moscow has stated that it cannot extent any special treatment to Imperial Energy. It has however indicated that some relief may come in form of rebates Moscow is planning for exploitation of tight oil reserves all over the country.

India had also sought to include Imperial Energy fields in the list of the fields where produced oil is subject to a reduced rate of export customs duty. Russia has remained non-committal on the issue.

Besides seeking a pie in the future exploration projects planned in Arctic, India may push for more LNG supplies during Putin’s official visit. Gas utility GAIL India Ltd had recently signed a 20-year contract to buy 2.5 million tons per annum of LNG from OAO Gazprom beginning 2018-19. LNG will come from Gazprom’s Shtokman production facilities, which has an estimated 130 Trillion cubic feet of reserves.

During talks, India may push for participation of ONGC in the Yamal LNG project. Initial talks have already been held with Novatek, the second largest gas producer in Russia after Gazprom.

ONGC has teamed up with GAIL and the nation’s largest liquefied natural gas importer Petronet LNG Ltd for taking a stake in the Yamal project which is controlled by Novatek. Total SA of France has 20 percent stake in the project.

Besides Yamal, GAIL is eyeing interest in a planned greenfield LNG project on the eastern coast of Vladivostok. Also of interest is the capacity expansion of the existing Sakhalin-2 project, aimed mostly at catering to the Asian market.

Also, Indian refiners are interested in procuring crude oil from Russia on long term contract. ONGC Videsh Ltd, the overseas arm of the state explorer, currently owns a 20 per cent interest in the Sakhalin-1 project in Far East Russia.

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CCI rejects complaint against market abuse DLF in Chennai

Reuters

The Association had claimed that after almost 18 months from bookings the flats and after paying crores of rupees, DLF "prompted the allottees to sign an agreement which is very unfair terms".

Dismissal of the Center, said the Commission procedures have been closed under "section 26(2) of the Act (competition)". Under this section the moderator a case close if it cannot find a prima facie evidence to proceed further.

DLF holds 51 percent stake in DLF southern homes. According to the informant, the developer an edge over other competitors scored by linking the price of Rs 2,800 per m² against prevailing market interest of Rs 3,200 per m² for comparable high turnout premium segment apartments.

Cutting speed, measured in 2009, DLF offered the apartments of the tariff of Rs 2,500 per m² for first customers and Rs 2,550 per m² for subsequent customers, depending on the order. The informant sought to create that DLF southern homes a dominant player in high rise premium apartments in the relevant market of the Corridor between two toll gates on this OMR gang was. However, the regulator said that the relevant geographic market cannot be limited to the OMR the corridor.

".. .the objective of the geographic market is the informant corridor OMR it is not acceptable. On the basis of the factors of supply and demand substitutability, the geographical area concerned in this case would be the field consisting of the entire geographical area of Chennai city, "said the order.

The information provided by the informant shows that within the OMR the corridor itself, there are a number of other builders who had started similar projects in that area, while DLF were involved in one project was, said the Commission.

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Securities appellate court rejects appeal against Sahara Sebi

The Supreme Court had asked these companies to provide documents relating to these investors to Sebi within 10 days. AFP

Passing the order on the appeal filed on 27 November, SAT noted that "a contempt petition by the respondent Board (Securities and Exchange Board of India) and an assessment petition by applicants (Sahara group of companies) against the order dated 31 August 2012 are already in treatment for Supreme Court."

The apex court had asked Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara housing investment Corporation Ltd (SHICL) to an estimated Rs 24,000 crore with an annual interest rate of 15 percent, while Sebi was aimed at facilitating the refund of this money to three refund crore bondholders of the two companies.

The Supreme Court had asked these companies to deliver the documents relating to these investors to Sebi within 10 days and refund the money within three months, failing which the regulator was asked to freeze the accounts and properties of the two companies.

SEBI issued a letter to the two companies asking them to provide data on 1 November 2012 of all bank accounts and properties, if they "don't deliver the documents to the Board within the prescribed time and thus the direction of the Supreme Court violated".

In the appeal at SAT, the Sahara companies said that Sebi "has deliberately refused the documents/information and wrongly went on the basis that the appellants in the non-observance of the instructions in the aforementioned ruling of the Supreme Court".

The two companies pleaded for SAT that they also a petition before the Supreme Court seeking reconsideration of 31 August. They further said the enterprises "are observing that the Board of Directors may not dwell on the payments that can be entered in accordance with the orders of Supreme Court as the Governing Council has randomly denied the documents/information relating to the investors of any fully convertible bonds (OFCD) by the appellants.

"It is, therefore, prayed that this Tribunal the court clerk, sat directly to accept custody can the amount payable by the appellants to the respondent by 30 November is the total amount redeemed by the appellants to excellent and OFCDs together with the interest on it per the directions of the Supreme Court."

The appeal said that Sebi is redirected to the timeframe within which the defendant the amount to the holders of OFCD and repay a scheme will on how the regulator proposes to give the money back.

SEBI counsel, however, objected to the appeal and the Tribunal to hear that the letter issued by the regulatory authority to the two companies not "a judicial order" under Sebi Act was. He submitted further that the appeal is premature, as no amount has contributed by the two companies in accordance with the instructions of the Supreme Court.

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