China's Ant considering Paytm stake sale amid tensions with India: Report

Agencies
December 2, 2020

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Hong Kong, Dec 2: Chinese fintech giant Ant Group is considering selling its 30% stake in Indian digital payment processor Paytm amid tensions between the two Asian neighbours and a toughening competitive landscape, people with direct knowledge of the matter said.

Financial details of the possible transaction have not been firmed up and Ant, the Alibaba-backed payments-to-consumer credit behemoth, has not launched a formal sale process yet, four people told Reuters.

Paytm, which is also backed by SoftBank Group Corp among others, was valued at about $16 billion during its latest private fundraising round a year ago. At that valuation, Ant's stake in the Indian firm is worth about $4.8 billion.
Both Ant and Paytm said that the information was incorrect. A Paytm spokesman said, "there has been no discussion with any of our major shareholders ever, nor any plans, about selling their stake."

Ant's possible exit from Paytm would mark another reversal for the Chinese company hot on the heels of the dramatic suspension of its $37 billion stock listing last month, which would have been the world's largest.

It also would be a step back from its ambitions of becoming a global payments leader. Sources told Reuters in October that Ant was cutting its financial support to many of the overseas affiliated e-wallet firms.

The main trigger for Ant to consider the divestment of its stake in Paytm is the worsening diplomatic relations between India and China in the past few months, said the people, who declined to be named as the deliberations are confidential.

Relations between the countries are at a nadir, with troops locked in a border face-off in the western Himalayas for months after a clash in June in which 20 Indian soldiers were killed.

Since the clash, India has tightened rules for investments from China and banned dozens of Chinese mobile apps, including from tech giants Tencent, Alibaba and ByteDance. It banned 43 more apps late last month.

"There is a growing realisation within Ant management that it would not be able to raise its stake in the company," one of the people with direct knowledge said, adding senior managers at Ant have discussed the idea recently.

Even so, Ant was in the middle of an investment review and it could still decide to shelve a divestment if it failed to get the desired valuation, he said.

Two other sources said that as a result of the review Ant could end up retaining a small stake in Paytm.

Competitive intensity

Indian start-ups are heavily funded by Chinese investors such as Alibaba and Tencent. Bankers have previously said they were looking to bolster their presence in the country with an aim to grow their revenue outside China.

Alibaba has invested over $4 billion in India so far and had plans to invest around $5 billion in 2021, which have now been put on hold, one of the sources said.

Alibaba did not respond to a request for comment.

Ant first invested in Paytm in 2015 and owns its 30% stake in the firm via its parent company, One97 Communications, according to Ant's initial public offering prospectus, which described the Indian firm as a major associate.

In addition to the tighter investment rules for Chinese companies in India, tougher competition is likely another factor behind Ant's calculations regarding Paytm, which is losing its dominance, two of the people said.

Online transactions, lending and e-wallet services have been growing rapidly in India, led by a government push to make the country's cash-loving merchants and consumers adopt digital payments.

That has led to the entry and expansion of Facebook-owned WhatsApp, Alphabet Inc's Google Pay, and Walmart's PhonePe. Some domestic players are also expanding operations.

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News Network
April 24,2024

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Pro-Gaza US protesters in New York's Columbia University say they will stay put despite the university's harassment and police crackdown.

The protesters said they refuse to concede to "cowardly threats and blatant intimidation" by university administration, asserting that they will continue to peacefully protest.

Columbia University threatened the students with the national guard after refusing to bargain in good faith.

The university announced a midnight deadline for talks regarding the removal of pro-Palestine encampments on the varsity campus, warning that their campsite will be forcefully cleared by police if no agreement is reached.

The university campus is being used as a campsite for hundreds of pro-Palestine protesters and other activists, who have gathered and set up numerous tents.

Pro-Palestinian protests at colleges have demanded that their universities divest from corporations doing business with Israel or profiting off the war in Gaza. At Columbia, protesters have also asked the university to end a dual-degree program with Tel Aviv University.

The deadline was announced by Columbia University President Minouche Shafik late Tuesday, as authorities across major American universities have launched their repression campaigns against the pro-Palestinian protests on campuses, amid rising anger over US's support for Israel. 

Shafik has issued a midnight deadline to protesters and organizers, warning that failure to comply will result in the forcible clearance of the camp by the New York Police Department (NYPD).

The university has engaged in discussions with student leaders behind the protests, which are part of a series of protests taking place at various colleges nationwide and resulting in multiple arrests.

The purpose of these talks is to address the encampment on the west lawn of Columbia's Morningside Heights campus.

American universities are grappling with the challenge of maintaining a delicate balance between the right to protest and freedom of speech, while also ensuring campus rules and safety, as tensions surrounding the ongoing war in Gaza continue to permeate across campuses.

Meanwhile, Shafik underscored the importance of free speech and the right to demonstrate, but highlighted significant safety issues, disruptions to campus activities, and a strained environment due to the encampment. She firmly stated that any form of intimidation, harassment, or discrimination would not be accepted.

The arrest of more than 100 protesters at Columbia University last week led to more campus demonstrations, at New York University, Yale, and the University of California, Berkeley.

Palestinian university professor Sami al-Arian said what is happening across US university campuses is unprecedented.

Al-Arian said, "I lived four decades in the US, 28 years of which were in academic settings. During my time, it was a very challenging struggle to present an anti-Zionist narrative."

"But the passion, courage, humanity, creativity, and determination displayed these days by students across US campuses make me proud. The Zionist grip on US society is weakening and waning."

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News Network
April 26,2024

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Bengaluru: Voting was underway on Friday in the first phase of Lok Sabha polls in 14 constituencies in Karnataka. Polling began at 7 am and will end at 6 pm.

A total of 247 candidates -- 226 men and 21 women -- are in the fray for the first phase covering most of the southern and coastal districts, where more than 2.88 crore voters are eligible to exercise their franchise in 30,602 polling stations.

The Congress and BJP are locking horns on the electoral battleground again in less than a year. This election is witnessing a straight fight between the ruling Congress and the BJP-JD(S) combine unlike the Assembly elections in May last year which witnessed a triangular contest among the three parties.

The state has a total of 28 Lok Sabha constituencies. The second phase of polling in the remaining 14 seats is on May 7.

In the first phase, while the Congress is contesting in all 14 seats, BJP has fielded nominees in 11 and its alliance partner JD(S), which joined the National Democratic Alliance in (NDA) in September last year, in three -- Hassan, Mandya and Kolar.

Besides the three, the segments where elections are being held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.

According to Election Commission, 1.4 lakh polling officials are on duty for the first phase. Besides them, 5,000 micro-observers, 50,000 civil police personnel, and 65 companies of Central Paramilitary Force and State Armed Police force of other States have been deployed for security. All the 2,829 polling stations of Bangalore Rural parliamentary constituency are being webcast.

"This is as per the request of our returning officers and observers; so we have given more than double the Central paramilitary force for Bangalore Rural constituency. Seven companies of Central paramilitary forces have been inducted at the constituency since April 22," Karnataka Chief Electoral Officer Manoj Kumar Meena has said.

In fact, out of the total 30,602 polling stations in the first phase, 19,701 are webcast, and 1,370 covered via CCTVs, he had added. Chikkaballapur has a maximum number of 29 candidates, followed by 24 in Bangalore Central, and Dakshina Kannada has the least number at nine.

JD(S) leader H D Kumaraswamy from Mandya, his brother-in-law and noted cardiologist C N Manjunath from Bangalore Rural on a BJP ticket against Deputy CM D K Shivakumar's brother and MP D K Suresh of Congress, and erstwhile Mysuru royal family scion Yaduveer Krishnadatta Chamaraja Wadiyar from Mysore, from the BJP, are among the prominent candidates in the fray in the first phase.

Also in the contest are BJP MP Tejasvi Surya from Bangalore South pitted against Minister Ramalinga Reddy's daughter Sowmya Reddy of Congress, and Union Minister Shobha Karandlaje on BJP ticket from Bangalore North against former Indian Institute of Management Bangalore professor M V Rajeev Gowda of Congress.

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News Network
April 17,2024

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New Delhi: Searches conducted by the Enforcement Directorate (ED) under the anti-money laundering law rose by 86 times while arrests and attachment of assets jumped by around 25 times in the ten years since 2014 compared to the preceding nine-year period, according to official data.

An analysis of the data by PTI for the last ten years, between April 2014 and March 2024, against the nine years from July 2005 to March 2014 presents a picture of the federal agency's "intensified" action under various sections of the Prevention of Money Laundering Act (PMLA).

The PMLA was enacted in 2002 and implemented from July 1, 2005, to check serious crimes of tax evasion, generation of black money and money laundering.

While the opposition parties have alleged that the ED's action during the last decade was part of the BJP-led central government's "oppressive" tactics against its rivals and others, the Union government and the ruling party have asserted that the agency is independent and its investigations were purely based on merit and under the mandate to act against the corrupt.

The ED booked as many as 5,155 PMLA cases during the last ten years as compared to a total of 1,797 complaints or Enforcement Case Information Reports (ECIRs or FIRs) filed during the preceding period (2005-14), a jump of about three times, the data said.

The data shows that the agency also got its first conviction starting the 2014 fiscal and it has, till now, got 63 persons punished under the anti-money laundering law.

The ED conducted 7,264 searches or raids in money laundering cases across the country during the 2014-2024 period as compared to just 84 in the preceding period - a jump of 86 times.

It also arrested a total of 755 people during the last decade and attached assets worth Rs 1,21,618 crore as compared to 29 arrests and Rs 5,086.43 crore worth of attachments respectively during the last compared period, the data stated.

The arrests are 26 times more, while figures related to the attachment of properties are 24 times higher.

The agency issued 1,971 provisional attachment orders for various types of immovable and movable assets during the last decade as compared to 311 such orders taken out in the preceding comparable period.

It got about 84 per cent of the attachment orders confirmed from the Adjudicating Authority of the PMLA during 2014-24 as compared to 68 per cent confirmations from the same authority during the last compared period.

The filing of charge sheets also saw a jump of 12 times in the last decade with 1,281 prosecution complaints filed by it before courts as against 102 during the preceding period.

The data said the ED secured conviction orders in 36 cases from various courts leading to the prosecution of 63 persons and a total of 73 charge sheets were disposed of during the last decade.

No conviction was obtained by the agency nor any charge sheet was disposed of under the anti-money laundering law during the 2005-14 period, according to the statistics.

The agency also got the court's permission to confiscate assets (attached as proceeds of crime under the PMLA) worth Rs 15,710.96 crore and it also restituted properties (including bank funds) of Rs 16,404.19 crore (out of the total amount under confiscation) during the last decade.

As there were no convictions during the preceding nine-year period, no confiscation of assets and resultant restitution could take place, as per the data.

The ED is also empowered to seize cash under the PMLA and the data said the agency froze more than Rs 2,310 crore worth of Indian and foreign currency during the last ten years as compared to a figure of Rs 43 lakh during the preceding period.

The agency also got notified a total of 24 Interpol red notices for apprehension of various accused who left India and hid in foreign shores and sent 43 extradition requests during 2014-24.

No such action was taken by the agency during the preceding period.

Four persons were extradited to India during the last ten-year time period while similar orders were secured against businessmen Vijay Mallya, Nirav Modi and Sanjay Bhandari. The three are based in the UK and the ED is trying to bring them back to the country as all the accused are contesting the orders issued against them.

"These statistics reflect the intensive drive that the ED has undertaken to check money laundering crimes," an agency official said.

The ED investigates financial crimes under two criminal laws -- the Prevention of Money Laundering Act (PMLA) and the Fugitive Economic Offenders Act (FEOA) -- apart from the civil provisions of the Foreign Exchange Management Act (FEMA).

The FEOA was enacted by the Narendra Modi government in 2018 to cripple those who are charged with high-value economic frauds and abscond from the country to evade the law.

The ED, as per the data, filed a total of 19 such applications before the designated special PMLA courts in the country following which 12 persons have been declared fugitive economic offenders.

It also confiscated assets worth Rs 906 crore under the said law by the end of the last fiscal on March 31.

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