European Union, USA heading for trade war
BONN, Jan 28 — The European Union has criticised the US move to revive Super 301, targeting countries for trade sanctions, even as it decided to seek a ruling by the World Trade Organisation on this controversial policy.

Over-take	Take-over
Microsoft ahead of GE	Ford Motor to buy Volvo car unit

NABARD aid for Punjab
CHANDIGARH, Jan 28 — NABARD has sanctioned Rs 25,15.73 lakh assistance to Punjab for the construction of flood protection works.

European Union, USA heading for trade war

BONN, Jan 28 (PTI) — The European Union has criticised the US move to revive Super 301, targeting countries for trade sanctions, even as it decided to seek a ruling by the World Trade Organisation (WTO) on this controversial policy.

A spokesman of EU Trade Commissioner Sir Leon Brittan, reacting angrily to the US threat on trade, said it looked as if the US was bowing to domestic protectionist pressures which “we consider to be very regrettable”.

Washington said yesterday that President Bill Clinton would issue an executive order reinstituting Super 301, a process in which the USA singles out countries deemed to have erected barriers to American goods. The process could lead to stiff economic sanctions.

Several developing countries, including India, have been a victim of the Super 301 clause of the US Trade Act before its provisions were allowed to lapse in 1997, as Washington moved into accord with a system of resolving trade disputes under the Geneva-based WTO.

Amidst the heated row between EU and the USA over Bananas, the former is challenging Super 301 in the WTO saying it was “incompatible” with Washington’s commitment as a member of the 132-member world trade body.

Washington threatened to impose sanctions as it continued to battle the EU over its banana import policy, saying Europe illegally favoured the fruit from its former colonies in the Caribbean over produce from Latin American countries marketed by US companies.  

The EU has maintained that the Super 301 process had allowed the USA to go outside the WTO’s own procedures for handling disputes while Washington said the threat of sanctions was “fully consistent with the WTO procedures”.

The USA has stoutly defended its right to impose sanctions in retaliation against its trading partners like the EU, rejecting European charges that it was breaking WTO rules even as the two sides accused each other of undermining the WTO in the increasing acrimonious trade dispute over bananas.

Ford Motor to buy Volvo car unit

DEARBORN, Jan 28 (Reuters) — Ford Motor Company, the number two US car-maker, said today that it had agreed to buy Volvo cars, the world wide passenger car business of AB Volvo for $ 6.45 billion.

“Our 21st century vision is to become the world’s leading consumer company that provides automotive products and services,” said Ford Chairman William Clay Ford, Jr, in a statement. “The addition of Volvo is a meaningful step toward achieving this vision,” Ford added. “Volvo is a perfect complement to the Ford family of brands worldwide.” Ford’s worldwide brands include ford, Lincoln, and Mercury in the USA, Jaguar and Aston Martin in the UK. The company also holds a one-third stake in Japan’s Mazda motor corporation. 

Microsoft overtakes GE

LONDON, Jan 28 (AFP) — Microsoft has overtaken General Electric (GE) as the world’s most valuable company, according to the FT500, The Financial Times’ annual ranking of companies around the globe. The survey orders firms by their market capitalisation — the share price multiplied by the number of shares issued. Microsoft was worth $ 271,854.4 million, while GE was worth $ 258,871.3 million. Next came Exxon, Royal Dutch/Shell — the only non-American company in the top ten — Merck, Pfizer, Intel, Coca-Cola, Wal-Mart Stores and (IBM).

NABARD aid for Punjab
Tribune News Service

CHANDIGARH, Jan 28 — NABARD has sanctioned Rs 25,15.73 lakh assistance to Punjab for the construction of flood protection works on the Ghaggar and its tributaries in the districts of Patiala, Sangrur and Fatehgarh Sahib.

Colgate net falls 48 per cent

NEW DELHI, Jan 28 (UNI) — Colgate-Palmolive India Limited has recorded a 48 per cent drop in its net profit during the third quarter of the current fiscal to touch Rs 9.77 crore as against Rs 18.8 crore in the same period last year. The company’s net profit during the first nine months of 1998-99 was Rs 27.48 crore, down 56 per cent from 62.52 crore a year earlier.

Net sales during the three month period stood at Rs 233.99 crore as against Rs 226.58 crore a year earlier. The figure during the nine-month period was Rs 694.92 crore from Rs 734.70 crore in the corresponding period last year. 

ICI India’s net drops

NEW DELHI, Jan 28 (PTI) — ICI India Limited posted a net profit of Rs 12.4 crore for the quarter ended December 31, 1998, which is lower by 7 per cent compared to the same period last year. The company recorded a total sales of Rs 215 crore for the third quarter, a growth of 10 per cent over the corresponding period in 1997.

For the nine-month period ended December 31, ICI India posted a profit after tax of Rs 46.7 crore showing an increase of 30 per cent over the corresponding period in 1997.

The company posted net sales of Rs 644 crore for the first nine months of the fiscal.

by Pushpa Girimaji
Delays and denials spoil bank loans

SECURING a loan from a bank or a financial institution seems really easy, till you actually apply for one. And then begins the demand for endless supporting documents, certificates, guarantees, sureties and the long wait for the application to be processed. Eventually, one may or many not get the promised loan.

Some of the cases filed before consumer courts against banks and other financial institutions reflect the innumerable problems associated with securing a loan. These complains pertain not only to unjust denial of loans, but also to inordinate delays in loan processing and refusal to release the entire sanctioned amount. There are also allegations of misuse of the sanctioning power by officials and demands for “speed money” or ”sanctioning money”.

In the initial years, the view of the apex consumer court, the National Consumer Disputes Redressal Commission, was that the decision to give or not to give a loan was purely that of the bank and consumer courts could not interfere with these decisions. Subsequently, the court modified this opinion and held that inordinate delay in processing the application or unjust denial of loan facility or abuse of power by officials who have the authority to sanction the loan constituted deficiency in service and the consumer courts could grant compensation to consumers who suffered as a result of such deficiency.

In the case filed by Mr C. Gopi Chettiar against the Federalu Bank (FA No 20 of 1993), the National Commission considered whether there was merit in the allegation of the complainant that the bank had taken an unduly long time to process the application and whether it had denied the loan facility unjustly. However, after examining the facts and evidence placed before it, the National Commission came to the conclusion that there was no deficiency on the part of the bank in declining to sanction the loan advance in as much as the complainant had failed to provide the collateral security demanded by the bank. The bank had to act in conformity with the rules and regulations framed by the RBI, the National Commission said.

More recently, in the case of Mrs Viswalakshmi Sasidharan and Ors vs the Branch Manager, Syndicate Bank, Belgaum (SLP no 4077 of 1997), the Supreme Court made it clear that if a person suffered loss on account of the failure of a bank to disburse the loan amount as contracted, it would give the consumer the right to complain of deficiency and seek redress under the Consumer Protection Act. However, in this case, an admission by the complainant that a slump in the market was responsible for the loss in business stood in the way of such a plea, the court said.

Ballarpur Ind profit rises

NEW DELHI, Jan 28 (PTI) — Ballarpur Industries Limited (BILT) today announced an increase of 43 per cent in its operating profit at Rs 36.11 crore for the first quarter ending December 31, 1998. However, the turnover of the company dipped to Rs 274.78 crore as compared to Rs 376.79 crore recorded during the corresponding quarter last year, a company release said here.

Marico net mounts 31 per cent

CHANDIGARH, Jan 28 (TNS) — Marico Industries Ltd recorded sales of Rs 401.3 crore during thenine-month period ended December 31, 1998 — a growth of 12.3 per cent over the corresponding period in the previous year. This was accompanied by a growth of 23.3 per cent in profit before tax and 30.9 per cent in profit after tax. Pretax profit at Rs 34.1 crore was 8.5 per cent of revenue. Marico recorded a net profit of Rs 29.2 crore which was 7.3 per cent of revenue, as against 6.2 per cent in the previous year.

DCM Shriram Cons net up

CHANDIGARH, Jan 28 (TNS) — DCM Sriram Consolidated Ltd has posted improved profits for the quarter ended December 31, 1998. The net profit has gone up to Rs 8.09 crore (Rs 4.17 crore), up by 93 per cent. Suspension of trading in DAP had its effect on the turnover, which stood at Rs 161.88 crore.

TVS Electronics net soars

NEW DELHI, Jan 28 (PTI) — TVS Electronics net profits for October-December ‘98 stood at Rs 49 lakh, a 700 per cent jump over net profits of Rs 7 lakh over same period last year. The total turnover for the nine months ending December ‘98 stood at Rs 84.11 crore as compared to Rs 79.81 crore in corresponding period last year, company release said.

Godrej Soaps loss at 12.6 crore

NEW DELHI, Jan 28 (UNI) — Godrej Soaps has recorded a net loss of Rs 12.6 crore in the third quarter of the current fiscal as against a net loss of Rs 11.1 crore in the same period last year. Sales in the three-month period, however, stood at Rs 245 crore, up from Rs 200 crore a year earlier. Net loss during the first nine months was Rs 20.30 crore as against a net profit of Rs 13.23 crore in the same period a year earlier.

Marginal growth in ACC sales

MUMBAI, Jan 28 (PTI) — Associated Cement Companies Ltd (ACC) has reported a marginal growth in sales of 4.5 per cent to Rs 633.58 crore during the quarter ended December 31, 1998 compared to the previous corresponding period. It reported a net profit of Rs 34.02 crore compared to Rs 8.10 crore in the same period last year. The other income earned during the period amounted to Rs 46.33 crore as against Rs 19.37 crore, last year. For the nine month period, the company has earned a net profit of Rs 55.12 crore as against Rs 29.31 crore in the corresponding period.

VSNL shares for employees

NEW DELHI, Jan 28 (TNS) — The government has decided to offer six lakh shares of the Videsh Sanchar Nigam Ltd to its employees as part of disinvestment process of public sector undertakings. This decision was taken at a meeting of the Union Cabinet which met here on Wednesday. It also cleared financial restructuring of the Hindustan Cables Limited and decided in principal to corporatise the Enrone Sea Port.

Bullion (Delhi)
Standard gold (10 gm) 4330
Ornaments 4180
Sovereign 3750
Silver (.999) 7650
Silver (.716) 7630
Coins buying 10,500
Selling 10,600

Time share
SHIMLA, Jan 28 (TNS) — A time share scheme was today launched on web site by the HPTDC. So far business proposals worth Rs 10 crore have been received. Mr P.C. Kapoor, Managing Director, HPTDC, said Rs 1 crore has been collected so far. Out of a total of 9776 units, 188 rooms have been earmarked. The ongoing scheme is valid for three years.

Tea imports
NEW DELHI, Jan 28 (TNS) — The Indian tea industry has opposed the government move to unilaterally allow import of tea into the country from Sri Lanka at concessional rates. This follows the government’s decision to allow import of 2000 items, including tea, into India from SAARC member countries under the Open General Licence (OGL) subject to prevailing duty structures. Opposing the government move to allow imports at zero duty, the Chairman of Indian Tea Association, Mr V.K. Goenka said that “ competition at any point of time should be fair, reciprocal and equitable”.