OPINION, P8 WELL BEING Climate crisis is also becoming a health crisis. Know how the ramifications are impacting people worldwide Page 6 Democracy deficit MIND & GAMES Scientists get a glimpse of 'Lost City' deep inside Atlantic Ocean Page 9 Rocky clues to life’s origins HOW CLIMATE CHANGE IS AFFECTING YOUR HEALTH ACROSS THE AISLE, P CHIDAMBARAM LEISURE Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM VOL. XX, NO. 50 TARSEM SINGH INTERVIEW KOLKATA SUNDAY, AUGUST 11, 2024, 20 Pages, `12 (NE States & Andaman `13) F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , ● Buch had stake in offshore entities used in Adani scandal: Report FE BUREAU Mumbai, August 10 EIGHTEEN MONTHS AFTER its report on Adani Group, US-based short-seller Hindenburg Research has dropped another bombshell. In a late evening report published on itswebsiteonSaturday,Hindenburg allegedthatSecuritiesandExchange Ropeway revolution With the govt planning over 200 projects worth `1.25 trn in the next 5 years, we look at what the future holds for cable cars as an urban public transport system rather than just being an infra project for mountain tourism A consolidated work on Uttar Pradesh’s electoral evolution and politicians HIGHEST PAID INDIA INC CEOs FY23 FY24 78.1 % change 209 241.2 167.6 82.4 M U M B A I , BLOWING THE WHISTLE ■ Buch and her husband first appear to have opened their account with IPE Plus Fund 1 on June 5, 2015 in Singapore: Hindenburg ■ The short-seller says despite evidence against the Adani group, Sebi took no public action against the entity another significant disclosure involving India. Theshort-sellersaidthatdespite the evidence, along with over 40 independent media investigations on its work, Sebi took no public action against Adani Group. “It has been nearly 18 months since our original report on the Adani Group presented overwhelming evidence that the Indian conglomerate was operating “the largest con in corporate history”. Our report exposed a web of offshore, primarily Mauritius-based shell entities used forsuspected billions of dollars of undisclosed related party transactions, undisclosed investment and stock ● Suggests panel to review decisions based on merit RAVI DUTTA MISHRA & ANANTHAKRISHNAN G New Delhi, August 10 103.4 34.0 52.3 109.4 9.9 105.1 99.6 209.6 89.4 71.0 MINISTER SitharamanonSaturdaycalledupon banks to try and address the widening asset-liability mismatch caused by their preference for short-term largedeposits,bybeingaggressiveon the“old-fashionedway”ofcollecting deposits from awidersection of customers.Theminister’sexhortationof thebanksduringhercustomarypostBudget address to the central board of the Reserve Bank of India (RBI) camecloseontheheelsoftheRBI’sin its bi-monthly monetary policy on Thursday asking the banks to use theirwidebranchnetwork,andcome upwithinnovativeproductsandservicesto mobilise deposits. The relative inability of banks to attract long-term deposits is amidst a shift of household savings towards other financial products, including equityinstruments. “Both RBI and the government have been asking banks to focus on their business activity... they should beaggressiveindepositmobilisation andthenlend.Thatisthecoreactivity of banks,” Sitharaman said.“RBI has given them (banks) some liberty in 73.8 85.0 15.1 C Vijayakumar CEO & MD, HCL Tech 28.43 83.9 195.1 76.8 3,986.2 76.6 24.2 SHAJU PHILIP & VIKAS PATHAK Meppadi (Wayanad), August 10 73.4 42.9 AFTERTAKING STOCK ofthe devas- 1.9 61.7 51.4 Note: SunTV's Kaveri and Kalanithi Maran,whose FY23 salarieswere `87.50 cr each,were not there in the list as their annual report for FY24 is not out yet; CEOswhose FY24 salarieswere above `50 cr considered for the list Source: Capitaline TV SOMANATHAN APPOINTED NEW CABINET SECRETARY THE CENTRE has appointed finance secretary TV Somanathan, who has overseen six Union Budgets, including one interim budget, as the next cabinet secretary for two years with effect from August 30. The Appointments Committee of the Cabinet has also approved the appointment of Somanathan as officer on special duty in the Cabinet Secretariat from the date he joins the assignment till he takes over as cabinet secretary, the government said in an order. Somanathan will succeed incumbent cabinet secretary Rajiv Gauba. Finance minister Nirmala Sitharaman and RBI governor Shaktikanta Das address the RBI board meeting in New Delhi on Saturday PTI PRIORITY AREAS ■ FM urges banks to address widening assetliability mismatch caused by their preference for short-term large deposits ■ Tells them to be aggressive on 'old-fashioned way' of collecting deposits from wider section of customers managing the interest rates. Using that liberty, they should make depositsattractive...bringinnovative products and mobilise deposits,” she added.Theadvicetobanksis toshun lazy banking and focus on small savers, rather than big or bulk deposits, of 1-3 years maturity bucket,which they have been focusing on in recent quarters. Retail deposits typically tend to be of tenures longerthan threeyears. ■ Both RBI and govt should aggressively mobilise deposit and then lend. That is the core activity of banks “Big (bulk) deposits have always been a very lazy banker’s job.But the trickles which come are the ones which are going to be bread and buttermoneytobankonforlendingregularly,” Sitharamansaid. RBI governor Shaktikanta Das said the central bank has proactively cautioned the banks on creditdeposit mismatch issues. Continued on Page 2 of patent and trademark orders passed in the last two years by the Controller General of Patents, Designs and Trade Marks (CGPDTM),undera cloud,theAdditional SolicitorGeneral of India has opinedthat“decisionsmadebyoutsourced employees”were“inherent flawed and legally unenforceable”. In her opinion submitted to the Department for Promotion of Industryand InternalTrade (DPIIT) on June 17,2024,she suggested an annulment of all decisions made by the “unauthorised outsourced employees”, internal documents have revealed. The commerce and industry minister had asked his officials toseektheASG’sopinionin the beginning of April 2024. To tide overshortage of staff,the CGPDTM had “outsourced” a total of 790 employees through the Quality Council of India, an autonomous not-for-profit body,at anannualcostof`50.26crorefrom October10,2022.The patent office had originally proposed hiring 1,114 employees at an annual cost In Wayanad,Modi promises aid for Kerala tation in landslide-hit Wayanad on Saturday, Prime Minister Narendra Modipromisedcompletesupportto Kerala government’s rehabilitation efforts and that “working together would lead to good results”. Modi spent the day taking an The landslides killed at least 226 people, while over 100 are still missing & presumed dead aerialreviewofthearea,speakingto survivors,andholdingreviewmeetings with the Kerala government. Thelandslideskilledatleast226 people,whileover100arestillmissing and presumed dead. Modi also held a meeting with the state government to review rescueandrehabilitationefforts.Atthe meeting,KeralaCMPinarayiVijayan sought financial support not only forrehabilitationeffortsbutalsofor combating climate change. A detailed assessment of the damage is underway but preliminary calculations showed damages running into thousands of crores, he said, urging the PM to have the landslide declared as a national calamity as early as possible. Modisaidlater,“Ihadtalkedtothe CMthatmorningandsaidthatweare mobilisingallresourcesandwillreach as soon as possible.”The Centre has already released funds to deal with calamities,he said,adding that additionalfundshadalsobeenreleased. ■ PAGE 2 N E W D E L H I , P U N E manipulation,”Hindenburg said. The report said since then, despite the evidence, along with over 40 independent media investigations corroborating and expanding on our original work, Indian securities regulator Sebi has taken no public action against the Adani Group. Instead, on June 27th,2024,Sebi sent us an apparent ‘show cause’ notice. It did not allege any factual errors in our 106-page analysis, but instead claimed the disclosure around our short position—which we disclosed repeatedly—was deficient, arguing that we should have provided even more robust disclosure,” Hindenburg said. ● Vying for No. 2 position along with Tata Motors’ Punch VIKRAM CHAUDHARY New Delhi, August 10 THE FIGHT BETWEEN Hyundai Motor India andTata Motors is not only limited to the second position in the overall sale of passenger vehicles. It’s also with regard to individual models. For instance, in July, Hyundai’s Creta beat Tata Motors’ Punch as India’stop-sellingcar.Infact,ifPunch didn’t have an electric variant, then Creta—although priced double— would have been in touching dis- Punch (EV) (in units) Punch (ICE) Total (2024) Jan Feb Mar Apr May Jun Jul Creta (ICE) Total 2,543 2,333 3,073 2,724 2,018 1,708 1,718 tance of Punch as India’s top-selling carforthe entireyear. Model-wise sales data collated from the industry shows that from January-July 2024, Tata Motors’ Total 15,435 16,105 14,474 16,434 16,931 16,530 14,403 13,212 15,276 16,458 15,447 14,662 16,293 17,350 entry-level micro-SUV Punch was at the top—having sold 126,429 units. Butofthese,16,117unitswereofthe Punch EV, launched on January 17. Sales of the Punch ICE, therefore, stood at 110,312 units. Hyundai’s premium SUVCreta— available only as ICE (petrol and diesel), as its EV variant will be launched next year—sold 108,698 units during January-July,just 1,614 units shyof the Punch ICE. InJuly,however,theCretaICEbeat Punch ICE-plus-EV put together— having sold 17,350 units,more than the latter’s 16,121 units.“The new Creta, launched on January 16, has attractedalotofcustomers,despiteit being in a high-end segment,priced double the Punch,” an automotive analyst told FE. “The Creta petrol is pricedfrom`11lakhto`20.15lakh, ex-showroom, and the diesel from `12.56 lakh to `20.15 lakh. The Punch petrol, on the other hand, is priced `6.13 lakh to `10.2 lakh,and the CNG from `7.23 lakh to `9.85 UNDER SCANNER ■ To tide over staff shortage, CGPDTM had 'outsourced' 790 employees at an annual cost of `50.26 cr ■ Hiring undertaken because manpower shortage was cited as reason for delays in approving patents, trademarks ■ Patent office had originally proposed hiring 1,114 employees at annual cost of `62.15 cr of `62.15 crore. The hiring was undertaken because manpower shortagewas cited as the reason for delays in approving patents and trademarks in a report by the Economic Advisory Council to the Prime Minister (EAC-PM). A week ago, the Calcutta High Court had also ruled that hiring contractual employees for “quasijudicial functions” in the patents and trademark office was not legal. Officials in DPIIT said the government has “revoked” the decision to let CGPDTM outsource officers. Continued on Page 2 NCLT orders insolvency proceedings against Coffee Day Enterprises PRESS TRUST OF INDIA New Delhi, August 10 CORPORATE DISPUTE TRIBUNAL lakh.Were it not for manufacturing constraints at the Hyundai plant in Chennai,which is working at 100% capacity utilisation, the Creta could even have outsold the Punch,” the analyst added. Gaurav Vangaal, associate director, light vehicle forecasting, S&P GlobalMobility,addedthatthesheer variant choice in the Creta means there is one for every buyer’s need. “There are 17 variants in petrol and 11indiesel,andfourgearboxchoices, making it a natural upgrade forpeoplefromthecompactSUVsegment,” he said.“Apart from Kia Seltos, the Creta is the only midsize SUV available in diesel—attracting diesellovers,asthisfuelformsalmost35% of its sales,” he added. NCLT has ordered initiating insolvency proceedings against Coffee Day Enterprises (CDEL), the parent company of Coffee Day Group, which operates the Cafe Coffee Day chain of coffee houses. The Bengaluru bench of the National Company Law Tribunal (NCLT) on August 8 admitted the plea filed by IDBI Trusteeship Services (IDBITSL) claiming a default of `228.45 crore and appointed an interim resolution professional to take care of the operation of the debt-ridden company. CDEL, which also owns and operates a resort, renders consultancyservices and is engaged in the sale and purchase of coffee beans, had defaulted in the payment of coupon payments of redeemable non-convertible debentures (NCDs). The financial creditor had subscribed 1,000 NCDs through private placement and paid `100 crore towards the subscription in March 2019. Continued on Page 2 Continued on Page 2 Creta shifts gears to pack a punch in PV sales 16,117 Sandeep Kalra Executive Director & CEO, Persistent Systems IN WHAT PUTS the legality of lakhs NIRMALA Naveen Jindal Chairman/ED & CEO, Jindal Steel Sajjan Jindal Chairman & MD, JSW Steel Board of India (Sebi) chairperson MadhabiPuriBuchandherhusband Dhaval Buch had stake in obscure offshore entities used in Adani money siphoning scandal. “Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5th, 2015 in Singapore, per whistleblower documents.Adeclaration of funds, signed by a principal at IIFL states that the source of the investment is ‘salary’ and the couple’s net worth is estimated at $10 million,” it further stated. The report comes after Hindenburg issued a teaser early on Saturday morning, hinting at 1,08,698 Pawan Munjal Chairman & Wholetime Director, Hero Motocorp Arnob Roy Whole Time Director & COO, Tejas Networks L U C K N O W , ‘Outsourced’ FM asks banks to launch staff can’t give broader deposit drive patents: ASG FINANCE Vinay Prakash Executive Director, Adani Enterprises K O L K A T A , PRASANTA SAHU New Delhi, August 10 21 CMs and a state Sudhir Singh CEO and Excutive Director, Coforge K O C H I , ● Persistent credit-deposit gap may cause systemic liquidity issues: Das ■ WORDS WORTH, P4 Thierry Delaporte MD & CEO, Wipro H Y D E R A B A D , SHUN LAZY BANKING, SAYS SITHARAMAN ■ SPOTLIGHT, P5 Abhay Bhutada MD, Poonawalla Fin READ TO LEAD Hindenburg accuses Sebi chief,husband ofAdani link WHAT'S INSIDE (Figures in ` cr) C H E N N A I , 1,10,312 P U B L I S H E D FINANCIAL EXPRESS ON SUNDAY The film-maker talks about his first production in India Page 7 Kolkata