Cyrus Mistry, Reliance, Go Air and others in news

Cyrus Mistry, who has been embroiled in a legal battle with Tata Group since being ousted in 2016, is unlikely to return to a leadership position though he won backing from a tribunal to be reinstated as executive chairman. The Reserve Bank of India conducted its first simultaneous ‘buy and sell’ open market operations (OMOs), in which it bought more bonds than it sold. Reliance Industries Ltd stepped up its court fight against the government for seeking to block its $15-billion deal with Saudi Aramco. Here is more about what made news this week.

Business Standard
21st December

  • Cyrus Mistry is unlikely to take up a board position at any Tata Group company though the National Company Law Appellate Tribunal (NCLAT) reinstated him as chairman last week. Sources said he might appoint nominee directors to ensure best practices of corporate governance at Tata group companies. Mistry would have got five months as chairman, and that’s one of the reasons why he is not keen to return to the board.
  • The CBI registered a criminal case against the former managing director of Maruti Udyog, Jagdish Khattar, and his firm Carnation Auto India for allegedly selling the assets pledged with Punjab National Bank (PNB) against a loan and diversion of Rs 110 crore. It was the state-owned lender’s third complaint of cheating since 2018 when it suffered through a $2 billion blow.
  • GoAir cancelled around two dozen domestic flights two days running as India’s aviation regulator stepped up pressure on the budget airline to address safety risks arising from overworking its crew. The airline operates more than 200 flights every day to domestic and international destinations, and it faces regulator scrutiny because of snags on the Pratt and Whitney (P&W)-powered A320neo aircraft.
  • China's ByteDance Inc. created one of the country’s rare global hits with the addictive video app TikTok. Now the US government is threatening that success as officials in Washington warn the service presents a security threat. The Beijing-based company, led by Chief Executive Officer Yiming Zhang, is weighing a range of options to address those concerns, according to people familiar with the matter.
  • Uber Technologies’ former chief executive officer (CEO) Travis Kalanick is stepping down from the board, severing his last ties to the company he co-founded a decade ago and helped become one of the world’s most valuable, and controversial, start-ups. Kalanick, 43, has sold all of his remaining shares in the ride-hailing giant and plans to focus on his new business and philanthropic endeavours.
  • The Reserve Bank of India conducted its first simultaneous ‘buy and sell’ open market operations (OMOs), in which it bought more bonds than it sold, showed results. The central bank had planned to buy up to Rs 10,000 crore of 10-year bonds and sell up to Rs 10,000 crore of four short-term bonds. The auction results, however, showed that while the RBI bought its full quota of 10-year bonds, it sold just Rs 6,825 crore, in aggregate, of short-term bonds maturing in the next one year.
  • Reliance Industries challenged a government petition in the Delhi High Court (HC) seeking to block its $15-billion deal with Saudi Aramco, saying the petition is an abuse of process as no arbitration award has fixed any final liability of dues on the company. In a counter affidavit, RIL said it was a ‘falsehood’ that the arbitration tribunal had passed an award requiring the company and its partners to pay $3.5 billion to the government.
  • Jharkhand became the seventh state since the Karnataka Assembly polls in May 2018 where the BJP has either failed to secure a majority or lost power, indicating its weakening grasp over the states even as it resoundingly won the 2019 Lok Sabha polls. The BJP's Jharkhand loss comes on the heels of it failing to form a government in Maharashtra, and having to turn to the Jannayak Janata Party (JJP) to form a coalition government in Haryana.

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A few links for further reading

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