Sunday, August 27, 2000,
Chandigarh, India







THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

Punjab to need 25,000 IT hands every year
CHANDIGARH, Aug 26 — By 2008, Punjab would need twentyfive thousand IT professionals every year to cater to the demands of the tremendously growing e-business and related areas. 

Hi-tech industrial park near Dera Bassi
CHANDIGARH, Aug 26 — An industrial park is being developed near Dera Bassi by the upcoming company Abhinav Futuristics Limited (a member of the Hi-Tech Group of companies). 

HAIC fails to achieve objectives
THE Haryana Agro-Industries Corporation (HAIC) has failed in achievement of its objectives and has been incurring heavy losses in its main activities due to under utilisation of capacity of its major plants owing to inadequacy of marketing infrastructure.


Forex reserves decline
MUMBAI, Aug 26 — India’s foreign exchange reserves declined by US $ 43 million to US $ 35, 633 million during the week ended August 18, 2000 over the previous week. The foreign currency assets were down by $ 33 million to $ 32,707 million as per the weekly statistical supplement of the RBI.


An Indian model displays a diamond necklace designed by Khaiyam Jaliwala from India during a fashion show organised by Debeers in Bombay on Friday to showcase 29 award winning designs from 16 countries.
An Indian model displays a diamond necklace designed by Khaiyam Jaliwala from India during a fashion show organised by Debeers in Bombay on Friday to showcase 29 award winning designs from 16 countries. — Reuters photo

 

Ministry finalises11 SSI proposals
THERE is lot of confusion in framing policies for the SSI sector in the existing liberalised regime. Almost 10 years have passed when reforms were introduced but there is no policy frame work for SSI sector. Even the very definition of SSI unit has not been fixed. Government and its cronies have instead produced the biggest industry — the Hype Industry. Government lives in future tense of numbers.

Satyam sponsors Olympic team
CHANDIGARH, Aug 26 — Satyam Infoway Limited (Nasdaq: Sify), India’s premier Internet and e-commerce company announced today that www.khel.com will be the official sponsor of the Indian Olympic Team to the Sydney Games 2000. And www.IOA.Khel.com will be the official website of the Indian Olympic Association for the Sydney games.

Ind-Swift Lab gets export house status
CHANDIGARH, Aug 26 — Ind-Swift, a north based pharmaceutical group deals in formulation and bulk drug through its two companies Ind Swift Ltd and Ind-Swift Laboratories Ltd. The former has declared a 20 per cent dividend, the latter has bagged the export house status.

In the wonderland of investment

EARLIER STORIES
 




Top












 

Punjab to need 25,000 IT hands every year
Tribune News Service

CHANDIGARH, Aug 26 — By 2008, Punjab would need twentyfive thousand IT professionals every year to cater to the demands of the tremendously growing e-business and related areas. Of these professionals 45 to 50 per cent people will be required for IT enabled services, 20 per cent for IT services, and 15 per cent each for software development and e-business. said, Mr N.S. Kalsi, Director,Technical Education and Special Secretary IT, Government of Punjab at a seminar on “Emergency business opportunities in IT”. He highlighted the steps being taken by the state to assure accelerated business in the IT sector.

Elaborating the efforts of the state in the sector, Mr Kalsi said that participation of the private sector is very essential for accelerated development in e-industry and the state government would fully co-operate with the private entrepreneurs in the same.

Mr Jivtesh Singh Main, Jt Secretary-cum-Financial Advisor, Ministry of IT, said on “Linking IT with the needs of the Agriculture sector” the role of IT in agriculture cannot be ignored.

Ms Madhulika Tripathi, Chairperson IT sub-committee CII (North) and Senior Vice-President of NIIT said the Net has reached households in the least time as compared to other modes of communication and information.

“India has the maximum potential to become the Silicon Valley of the world because not only do we have one of the maximum numbers of English speaking residents after the USA, our expertise is also recognised worldwide”, said Mr Saurabh Srivastava, Executive Chairman, IIS Infotech Ltd & Infinity Ventures.

Top

 

Hi-tech industrial park near Dera Bassi
Tribune News Service

CHANDIGARH, Aug 26 — An industrial park is being developed near Dera Bassi by the upcoming company Abhinav Futuristics Limited (a member of the Hi-Tech Group of companies). A memorandum of understanding for setting up the industrial estate was signed today between the promoters represented by Chairman of Hi-Tech Group of Companies, Dr A.S. Bindra and the Secretary to Government of Punjab Department of Industries and Commerce Mr Ramesh Inder Singh. Foreign investor Mr Cees Van Baar from New Zealand was also present on the signing occasion.

Abhinav Futuristics, is a company floated in the name of the Ace Air Rifle Shooter and world record holder Abhinav Bindra on the eve of his departure for participation in Sydney Olympics. This industrial park spanning over 100 acres will boast of the most modern infrastructural facilities. Located at 30km from Chandigarh and conforming to international industrial standards, the industrial park shall be a dream location for NRIs and industrialists with a drive and would prove to be the international industrial park of the new millennium.

The project will have salient features like excellent infrastructure including 100 per cent power backup from its own 30MW captive power plant, Hi-Tech Industrial IT Centre, State of the Art telecom facilities, banking, postal and medical facilities. The large medium and small scale industries shall be set up especially in areas of IT, electronics, pharmaceuticals, light engineering, textile, value added agro-based industry etc.

Major thrust would be on setting up of non-polluting industries with infrastructure like hotel, restaurant, market, bank and postal facilities. In the second phase it is proposed to set up a unique 18 hole Golf Course, sporting and entertainment centre along with multistorey State of the Art Residential Flats. The Government of Punjab and its concerned departments shall provide all possible assistance, facilities and incentives and Udyog Sahayak in Industries department will act as a single window facilitator for this project.

It is hoped that on completion the industrial estate will have attracted an investment of over Rs 1000 crore with a turnover exceeding Rs 2500 crore per annum including exports.
Top

 

HAIC fails to achieve objectives
By V.P. Prabhakar

THE Haryana Agro-Industries Corporation (HAIC) has failed in achievement of its objectives and has been incurring heavy losses in its main activities due to under utilisation of capacity of its major plants owing to inadequacy of marketing infrastructure.

The profits earned by the company were mainly attributable to restoration of wheat procurement activity to it by the State Government under rehabilitation plan. The uneconomical workings in the main activities of the company was the result of poor performance of its main plants, farmers service centres engaged in the sale of fertilisers, pesticides etc and injudicious procurement of materials resulting in heavy inventory carrying cost, unnecessary locking of funds etc.

This, in view of the uneconomical working of the company in its main activities, the CAG has suggested that its continuance in the present form needs to be reappraised.

For meeting its working capital requirements, the company had been obtaining loans/deposits from the State Government and Haryana Agro Research and Development Centre. As on March 31,1998, an amount of Rs 426.84 lakh was outstanding. Besides, the company had also made cash credit arrangements from banks for procurement of wheat and fertilisers. As on March 31, 1998, Rs 2430.43 lakh (against wheat limit: Rs 1024.03 lakh, against paddy limit: 354.8 lakh and against fertiliser limit: Rs 1052.32 lakh) were outstanding.

As on March 31, 1998, it had invested Rs 643.78 lakh in equity capital of 18 units (all in assisted sector) of which five units (investment of Rs 137.50 lakh) were under construction. One unit Vishwa Flora Limited, where the company invested Rs 70.35 lakh, had completely eroded its capital base. The case of this unit alongwith another unit, Rahul Dairy and Allied Products Limited, where the company invested Rs 21.12 lakh, had been referred to BIFR being sick units. Two units where the company had invested Rs 61.71 lakh had abandoned their products. The four units which had earned profit involving company’s investment of Rs 173.27 lakh had also not declared dividend and utilised their surplus to meet their working capital/expansion requirements. Remaining five units involving investment of Rs 179.83 lakh were also in losses. Out of 18 units, against the investment of Rs 178.83 lakh in six units (two profit making and four loss making units) where shares were quoted in the market, their quoted market value as on March 31, 1997, was only Rs 68.57 lakh.

The capacity utilisation of the Cattle Feed Plant, Jind, Food and Fruit Processing Plant, Murthal, and Agro Engineering Workshop, Nilokheri, was grossly low due to inadequacy of marketing infrastructure leading to incurring of heavy losses which aggregated to Rs 276.26 lakh during the five years ending 1997-98.

Investment of Rs 65.38 lakh on modernisation of Food and Fruit Processing Plant, Murthal, did not yield desired results owing to failure of the company in obtaining further funds needed for procurement of additional machinery.

The inability of the company to procure fertilisers at competitive rates and inadequate marketing infrastructure led to decrease in the market share of the company in the State from 27.4 per cent in 1993-94 to 3.2 per cent in 1997-98.

Acceptance of delivery of urea at the fag end of the season at a non-indented station and non-disposal thereof on ‘first in first out’ basis, resulted in loss of interest of Rs 16.35 lakh besides deterioration in quality of 912.52 metric tonnes of urea valued at Rs 28.10 lakh.

Due to non-claiming of dues from the Food Corporation of India as per instructions issued from time to time, the corporation had lost an amount of Rs 13.84 lakh on account of interest.

Due to injudicious decision to contribute additional Rs 400 lakh during March 1995 to the Haryana Agro Research and Development Centre, the company lost Rs 239 lakh and paid an avoidable interest of Rs 102.77 lakh on account of interest on cash credit/loan.
Top

 

Forex reserves decline

MUMBAI, Aug 26 (PTI) — India’s foreign exchange reserves declined by US $ 43 million to US $ 35, 633 million during the week ended August 18, 2000 over the previous week.

The foreign currency assets were down by $ 33 million to $ 32,707 million as per the weekly statistical supplement of the RBI.

The gold reserves were static at $ 2,924 million while special drawing rights (SDRs) rose by $ 2 million.

RBI said foreign currency assets expressed in US dollar terms included the effect of appreciation/depreciation of non-US currencies held in its reserves.

Aggregate deposits to commercial banks in the fortnight ended August 11 had risen by Rs 2,913 crore to Rs 8,56,806 crore as against the previous fortnight.
Top

 

Ministry finalises 11 SSI proposals
By P.D. Sharma

THERE is lot of confusion in framing policies for the SSI sector in the existing liberalised regime. Almost 10 years have passed when reforms were introduced but there is no policy frame work for SSI sector. Even the very definition of SSI unit has not been fixed. Government and its cronies have instead produced the biggest industry — the Hype Industry. Government lives in future tense of numbers.

After a lot of controversy Prime Minister is to announce policy for SSI sector on August 30. Two separate groups have been formed to finalise the proposals. The Prime Minister will address a meeting that will be attended by entrepreneurs, officials and others associated with the sector.

SSI Ministry is said to have finalised 11 proposals. Policy will include enhancement of investment limit up to Rs 5 crore for 6 sectors; toys, garments, hosiery, auto parts, hand tools and packaging material. Limit for garment sector may be Rs 3 crore.

Ministry of SSI is proposing technology upgradation and modernisation fund (TUMF) of Rs 5000 crore. This will be in the form of interest support. Samadhan Scheme for sick SSI units is also being proposed. In the last Budget Finance Minister had proposed to set up corpus of Rs 125 crore for credit guarantee fund. This amount is too small and is proposed to be raised to Rs 2500 crore.

Proposals include rationalisation of tax structure for SSI sector which includes reduction of taxes on certain components. Such a proposal was made for the last budget but Finance Minister turned it down.

Branded products with brands of buyers attract full Central Excise from SSI units although clearance may be within exemption limit. Finance Minister has waived this condition for units in rural areas. The proposed policy should waive this off for other units.

Some facts on the issue are really startling. More than 550 items on the list of reserved products are now freely importable. So it is a strange situation when these products manufactured by MNCs can be imported while indigenous companies can’t manufacture them.

Chemicals and Chemical products, metal products and transport equipment and parts, rubber and plastic products constitute almost 60 per cent of the 843 reserved products. Second census of SSI sector found that of the 200 products which dominated the output of this sector, reserved items accounted for only 21 per cent and 233 reserved items were found not to be manufactured at all or in negligible quantities. As many as 90 products were manufactured by just one company each. So de-reservation issue has to be seen in this background.

Sickness in SSI sector is rising. The number of SSI units has increased from 19.48 lakh in 1991 to 31.25 lakh in 1999; production has risen from Rs 1,55,340 crore to Rs 5,27,515 crore. Sickness has also gone up from 2,68,885 units in 1995 to 3,06,221 units in 1999. Inadequate bank credit is the main reason for this. Policy of directed lending to SSI sector should shift from targets to quotas.Top

 

Satyam sponsors Olympic team
Tribune News Service

CHANDIGARH, Aug 26 — Satyam Infoway Limited (Nasdaq: Sify), India’s premier Internet and e-commerce company announced today that www.khel.com will be the official sponsor of the Indian Olympic Team to the Sydney Games 2000. And www.IOA.Khel.com will be the official website of the Indian Olympic Association for the Sydney games.

Satyam Infoway’s aim is to promote sports in the country through www.khel.com. With this objective the company is sponsoring the Indian Olympic team and is providing the Indian delegation with phone cards, Internet access and a 24 hour communication cell in Sydney, so that they can stay in touch with their loved ones and fans in India. The company is also organising a “Go for gold run” in Chennai enabling Chennaities to wish good luck to their favourite team members.

Satyam Infoway has also announced prizes to all medal winners in both individual and team events. These include cash awards upto Rs 50,000 for each sports person said. Mr Suresh Kalmadi, President of the IOA.

Ms Padma Chandrashekar, Vice President — Content, Sify added that www.IOA.Khel.com, the official site of the Indian Olympic Association will provide the Internet user with an Indian centric first-hand view from the comfort of his/her home or office. It will also be an opportunity for the athletes to share their excitement with fans all over India.”

Satyam Infoway Limited (Nasdaq: Sify) is the second largest national provider of Internet access and Internet services to consumers and businesses in India. As of June 2000, Satyam Infoway has more than 200,000 consumer Internet subscribers. The company’s network presently serves 44 locations, covering more than 220 cities throughout India.Top

 

Ind-Swift Lab gets export house status
Tribune News Service

CHANDIGARH, Aug 26 — Ind-Swift, a north based pharmaceutical group deals in formulation and bulk drug through its two companies Ind Swift Ltd and Ind-Swift Laboratories Ltd. The former has declared a 20 per cent dividend, the latter has bagged the export house status.

Mr V.K. Mehta, JMD of the company said that Ind-Swift Laboratories Ltd. received the export house status within a short span of 3 years of commencement of commercial production. He said the confirmation to this respect had been received from the Ministry of Commerce.

Ind-Swift Ltd., of the Ind-Swift group, which has declared its first quarter results has also shown a 60 per cent increase in profits during this quarter as compared to the same period during the previous year. The turnover has also increased during the first quarter by 22 per cent from 18.92 crore last year to Rs 23.06 crore during the quarter under review.

Dr G. Munjal, JMD, Ind-Swift Ltd. said the Board of Directors of the company has recommended a final dividend of 10 per cent which if approved in the ensuing Annual General Meeting would make the total dividend declared during the year to 20 per cent. On an equity base of Rs 3.85 crore, the EPS for the year 1999-2000 works out to Rs 13.65.

Ind-Swift Laboratories is exporting its products to 35 developed countries which include Switzerland, Italy, Germany and Netherlands said Mr Mehta. In the domestic market, it supplies some of the products to the pharma majors like Cipla, Cadila, Wockhardt, Sun, Glenmark, Novartis, E-Merck, Lupin, etc.

Top

 

Technocampus
Tribune News Service

CHANDIGARH, Aug 26 — Technocampus — the software finishing school by Globsyn Technologies and Techsoft Solutions (P) Ltd. will start functioning by December this year in Chandigarh. Informing this at a press conference here today, Mr Kamal Arora, Director, Techsoft Solutions said that the courses, based on the “Finishing school” concept would aim to bridge the gap between the generic ,concept oriented university education and market demand for application ready software professionals in IT. Technocampus would also have courses in Java and e-commerce, apart from the special modules which have been developed for the corporate clients.
Top


  rc
RENT CASES

by Praful R. Desai

Fitness of the shop

Q: Can the assessment of the Prescribed Authority that a particular premises was not fit and suitable for respondent to carry business from that shop, be challenged in writ jurisdiction?

Ans: Answer was supplied by the Allahabad H.C. in Janendra Kumar Jindal v First Add. Distt. Judge, Hardwar (2000 (1) R.C.J. 464).

The dispute is in regard to the third shop which is alleged to be above to the shop in which Laxmi Narain, husband of Smt Rajbala is carrying on business. The contention of respondent No. 3 was that there is only one room and the stair-case is from the back side and it is not suitable for carrying on business.

The contention of the petitioner before the Prescribed Authority was that is was let out to a tenant. The Prescribed Authority found that it was not let out to a tenant but on consideration of material evidence on records it was found that it was not fit and suitable for the respondent to carry on business. This shop is situated above the shop in which Laxmi Narain is carrying on business.

There is only one room on first floor and the stair-case is from the back side. This finding is based on assessment of material evidence on record. Consequently, the H.C. held that it did not find any reason to interfere in the finding recorded by the Authority below under Act 226 of the Constitution.

The HC thus dismissed the writ petition. However, on the request of the petitioner, the HC granted 10 months time to vacate the premises on the usual undertaking of the petitioner. He should give written undertaking on affidavit before the Prescribed Authority that he would vacate the disputed shop within the time granted to him.

Top

 

In the wonderland of investment
A.N. Shanbhag

Q: I am senior citizen. The source of my income is only from pension and interest on fixed deposits with scheduled bank. After rebate of standard deduction U/s 16(i) from pension, U/s 80L from interest income and U/s 88B in respect of senior citizen, the tax calculated on the balance income is Nil. As the interest income from banks is more than Rs 10,000. I am filing declarations in Form 15-H to save deduction of TDS by the bank as and when any fixed deposit become payable.

Now I wish to sell some equity shares of a company and due to this sale, shall earn capital gains, and on this capital gain some income tax will become payable. Although I shall deposit the due income tax payable on capital gain immediately on receipt of the sales proceeds. I shall feel grateful if you will very kindly advise me if it is still in order for me to file declaration in Form 15-H to avoid deduction of TDS on interest income of fixed deposit amount.

The reason of my query is that in the Declaration Form 15-H one of the conditions is that "The Tax on my estimated total income including the interest will be Nil" whereas in actual fact this will not be the case as in the event of sale of shares, there will be income tax payable on capital gains. In case I do not file Form 15-H and allow the bank to deduct TDS, they will deduct TDS from interest income, and then I will claim the refund of this tax from income tax department an unnecessary transaction.

— P.L. Gupta, Nabha

A: If you end up paying some tax you cannot file Form 15H. I have two suggestions: withdraw your funds from bank FDs and shift over to Pure-growth, Open-ended, Debt-based schemes (PODs) of UTI/MFs. Being pure-growth, no dividend is paid and you can earn your income through growth. Therefore, the interest from bank FDs will descend down to nil level: No TDS. I have never liked bank FDs in view of the fact that PODs have become virtual bank SB accounts (withdrawals within 5 working days) and the returns are better than those on bank FDs.

Next, after earning capital gains, if you still find that you have to pay tax, you may consider investing a part of the sale proceeds in avenues covered by Sec. 54EC. Even the first scheme under this Section has not entered the market as yet. I am eagerly waiting for the same gauge utility of Sec. 54EC.

Q: Your article in Tribune of 30.01.2000 you have left one thing i.e. if a subscriber to PPF does not withdraw the amount on completion of stipulated period of 15 years, and desires to continue, can he withdraw as his need he so after 2-3 year or same specified period.

— Dr Major B.S. Bhatia, Dehlon

A: Post maturity continuations can be with or without contributions.

A subscriber, who continues his account with fresh subscriptions, can withdraw up to 60 per cent of the balance to his credit at the commencement of each extended period in one or more instalments, but only one per year.

On the other hand, the balance can be merely retained in the account without subscription till it is needed. The account can be closed anytime or any amount can be withdrawn in instalments, not exceeding one withdrawal a year. The balance will continue to earn interest till it is completely withdrawn.

Q: I had invested Rs 9,000 in Canpep-91 under the umbrella of Sec. 80CCB where 100 per cent of the contribution was not chargeable to tax. It was brought to tax in the year of withdrawal. I was not a taxpayer and I am still not. I have not been filing tax returns. I did not claim any deduction u/s 80CCB. During this year, even if I ask for repurchase, my income will be below the taxable limit. How can I receive the proceeds without TDS?

— B.D. Ketkar, Lokmanya Nagar, Pune

A: Sec. 80CCB(2) stipulates that where any amount invested by the assessee in the units issued under ELSS in respect of which a deduction has been allowed is returned to him in whole or in part, in any year, it shall be deemed to be the income of the assessee.

Since you have not claimed a deduction in the year of deposit, withdrawal of capital is not chargeable to tax. Canbank MF has to deduct tax at source. You can do nothing about it. Most unfortunate.

You may note that the provisions of Sec. 80CCA (NSS) covering the capital as well as the interest thereon, are absolutely parallel. However, there are a few differences.

Sec 194EE dealing with NSS states, "The person responsible for paying to any person the amount referred to in Sec. 80CCA(2a) shall, at the time of payment thereon, deduct income tax @ 20%. Sec. 194F deals with ELSS and is similar in nature. Sec. 197A provides for no TDS if the individual furnishes a declaration in Form 15-I to the effect that the tax on his estimated total income will be nil. There is no parallel form for 80CCB.

Sec. 197 empowers ITOs to give a certificate (Form No. 15AA) to the assessee, authorising the person responsible for applying TDS to deduct tax at a lower or nil rate. The income in respect of which such certificates can be given is salary, interest on securities, interest other than interest on securities, insurance commission, rent, income from units, but does not include Sec. 19 the benefit of indexation may not be available (I am not very sure), perhaps because of a lapse of the authors FY92. While introducing the concept on indexation for computing tax on long-term gains, they left Sec. 45(6) dealing with LT on ELSS untouched. It continues to state, "the difference between the repurchase price of the units and the capital value of such units shall be deemed to be the capital gains".

Many experts (particularly Mr B.S. Jindal who writes a column for The Economic Times) feel that the capital gain is always the difference between the sale (or transfer) proceeds and the cost of acquisition. The index comes into picture only for computing tax as specified by Sec. 48 on the LT capital gains only in some certain specified cases. For instance, index is not applicable in the case of shares and debentures purchased through foreign exchange by NRIs. Application of index is optional in the case of Residents selling securities after a holding period of one year.I am not an expert, but I fully subscribe to this view. Unfortunately, many ITOs are not experts and each one applies his own interpretation, depending upon whether he likes the face of the assessee or not. Unless CBDT comes out with a clarification, the assessees will keep on spending lot of money in making their face likeable.

I have a suggestion. FA00 has brought units under the ambit of ‘Securities’. If and when you sell the ELSS, compute the gains without indexation and pay tax @ 10 per cent. Nice, isn’t it?

Sorry, what if it happens to be a loss? In that case, apply indexation while file your returns and concentrate on making your face a little more attractive.
Top

  co
CHECK OUT

by Pushpa Girimaji

Railways wasting public money in litigation

I wish the Railways would stop defending the indefensible and waste public money in futile litigation. I am referring to consumer court cases where the Railways put up ridiculous arguments to explain their failure to provide reserved seats or berths to passengers with valid tickets.

Take the recent case decided by the National Consumer Disputes Redressal Commission. A group of four university teachers who had to go to Calcutta for academic purposes booked their return tickets from Calcutta to New Delhi a month in advance from Shimla. However, even though the railway authorities in Shimla informed the Howrah station about the reservation and subsequently sent two reminders telegraphically, the teachers were told at Howrah that their tickets were not reserved. After meeting several railway officials for days, the teachers realised the futility of their efforts and finally travelled by air to Delhi. Subsequently, they filed a complaint before the consumer court in Shimla, seeking among others, refund of the money spent on air tickets and compensation for the suffering undergone. And the railways, after failing to convince the State Consumer Disputes Redressal Commission at Shimla that there was no negligence or deficiency in the service rendered, filed a revision petition before the National Commission.(The Deputy Chief Commercial Manager, Eastern Railway vs Dr K.K.Sharma, RP 300 /2000).

And one of the first arguments advanced by the railways was that reservation was not given to passengers as a matter of right. And in this case the purchase of a ticket did not give the complainants, a right to reservation. The National Commission dismissed this argument. Said the Commission in its order: “There cannot be any dispute that the passenger is not entitled to get reservation as soon as he purchases a ticket but it is equally true that the railways cannot decline to make reservation arbitrarily”. The Commission reminded the railways that three telegrams were sent from Shimla, but the railway officials at Howrah did not even care to reply to them. Thus the fact that there was dereliction of duty and deficiency in service on the part of the railways could not be disputed, the National Commission said. The other contention of the railways was that in view of the Railway Claims Tribunal Act, the consumer courts did not have the jurisdiction to hear the case. This was also rejected by the National Commission

Similarly, in an earlier case (Basanta Kumar Sahoo vs Chief Commercial Manager) the railway officials were unwilling to accept responsibility for forcing two passengers with valid tickets to detrain. And instead of apologising to the passengers for the humiliation and inconvenience caused and paying compensation voluntarily, the railways tried to escape liability by putting up a ridiculous argument that the complainants were not consumers as defined in the Consumer Protection Act and besides, the case did not fall within the territorial jurisdiction of the Orissa State Commission. Both these arguments were dismissed by the State Commission.

The complainants had booked their return journey from Chennai to Bhubaneshwar and boarded the train after confirming their berth and coach numbers. However, after the train left Chennai, a TTC forced them out of the train on the ground that they did not have valid tickets. He even collected from them penalty for ticket-less travel up to that point. What prompted this action was a mistake in the reservation chart, which showed the two passengers as having reservation to travel from Bhubhaneshwar to Calcutta on the train, instead of Chennai to Bhubhaneshwar. And this mistake was compounded by the behaviour of the TTC who refused to listen to reason..

Again in a more recent case, the Consumer Forum in Delhi picked holes in the reply given by the railways and said there were discrepancies in it. Here the complaint of Mr and Mrs S.K.Bharadwaj was that they were given reservation on Coach S-11, but on the day of the journey the coach was not attached to the train at all. Nor were they given alternate accommodation, as a result of which they had to travel standing near a stinking toilet from Pathankot to New Delhi. At one point in their reply, the railway officials disputed the fact that the coach was not attached at all and at another, said the coach could not be attached due to circumstances beyond their control!

Not providing berths and seats to passengers who have confirmed, reserved tickets constitutes negligence.. But to defend such action and deny compensation to passengers who suffer on account of such service is sheer callousness. The only way to make the railways realise this is by forcing those who are responsible for such shoddy service to stand in a long queue, book a ticket a month in advance and then travel long distance without reservation. Because so long as railway officials/employees do not personally experience the agony and suffering of such passengers, they will continue to treat passengers shabbily.
Top


  bb
BIZ BRIEFS

Office-bearers
Tribune News Service

CHANDIGARH, Aug 26 — Mr Amar Singh, has been re-elected Secretary of Associate Banks Officers Association, (ABIO), Unit State Bank of Patiala during the triennial elections of State Bank of Patiala held here unanimously. The other office bearers are: Mr M.J. Walia — Chairman, Mr S.S. Sidhu — Vice Chairman, Mr Rakesh Jasra — Organising Secretary and Mr Chaman Lal — Treasurer.

Optical fibres

CALCUTTA, Aug 26 (PTI) — The Central Glass and Ceramic Research Institute (CGCRI) here has embarked upon an ambitious project in collaboration with Information Technology Ministry to meet the country’s demands of a special variety of optical fibre.
Top

Home | Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial |
|
Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune
50 years of Independence | Tercentenary Celebrations |
|
120 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail |