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Karnataka High Court permits Xiaomi India to take overdrafts, make payments

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In a major relief to major tech giant Xiaomi India, the Karnataka High Court has permitted it to take overdrafts from banks and make payments. However, the court has excluded the payment of technology royalty.

Vacation Judge Justice S. Sunil Dutt Yadav on Thursday also extended the interim order till May 23 and stated that the matter is now between the banks and the petitioner company.

The court had given conditional stay on the order given by the Enforcement Directorate (ED) on April 29 to seize a whopping Rs 5,513.3 crore amount. The ED has taken the step after invoking the Foreign Exchange Management Act, 1999.

Senior advocate S. Ganeshan argued that Xiaomi India was being targeted as it is a Chinese company and other companies are allowed to make payments of technology royalty. Seeking clarification on the earlier interim order on May 5, he argued that banks are not allowing Xiaomi to make remittances in foreign exchange for imports following the court order.

He explained that the company is required to make payments for foreign companies in connection with manufacturing and marketing smartphones.

Contesting this Additional Solicitor General M.B. Nargund said that the authorities have no complaints if Xiaomi is agreeable to keep the seized amount in the bank and use the remaining amount.

He brought to the notice of the court that on April 24 and 29, before the ED passed the order to seize Xiaomi’s bank accounts, there was a transfer of around Rs 1,500 crore from the company’s bank accounts as per the available information.

However, Xiaomi is maintaining that royalty payments made to three companies abroad would not violate the FEMA Act. The company further maintained that the I-T department itself had allowed it as a value added activity.

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Thane-Borivali Twin Tunnel Work Launched; Here’s How TBM Nayak Will Transform Travel For Mumbaikars

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Mumbai: The first Tunnel Boring Machine (TBM), named Nayak, has been launched to begin excavation for the Thane–Borivali Twin Tunnel project today. The inauguration was officially done by Chief Minister Devendra Fadnavis along with Deputy Chief Ministers Eknath Shinde and Sunetra Pawar. Transport Minister Pratap Sarnaik was also present at the event, which took place at the TBM launch site in Manpada, Thane.

At present, the 23-kilometre journey between Thane and Borivali takes anywhere between 60 and 90 minutes, largely due to heavy congestion on Ghodbunder Road. Once completed, the new tunnel route will bring this travel time down to just 15 minutes, offering a faster and more reliable commute. The project, which began on May 19, 2023, is expected to be completed by May 2028.

Implemented by MMRDA, the project also includes connecting roads linking the Western Express Highway in Borivali and Ghodbunder Road in Thane.

A machine built for Mumbai’s toughest terrain, a 13.34-metre diameter single-shield TBM—among the largest deployed in urban tunnelling. Weighing nearly 2,500 tonnes and assembled from over a thousand components, the machine represents cutting-edge engineering tailored for challenging geological conditions.

Meanwhile, prior to this, Phase 1 of the long-awaited Metro Line 9 rail service between Dahisar East and Mira Bhayandar was inaugurated. CM Devendra Fadnavis, along with Deputy CM Eknath Shinde, Transport Minister Pratap Sarnaik, and Mumbai Mayor Ritu Tawde, were present at the inauguration ceremony of phase 1 connecting Dahisar East to Kashigaon.

The 4.97 km line connecting Dahisar and Kashigaon, with stations at Pandurang Wadi and Miragaon, is expected to provide relief to commuters in the Mira-Bhayander region, which currently depends heavily on road transport, leading to frequent traffic congestion.

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Govt doubles daily 5-kg LPG cylinder quota for migrant labourers across states

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New Delhi, April 7: The Centre has decided to double the daily allocation of 5-kg free trade LPG (FTL) cylinders available for distribution to migrant labourers across states, according to an official communication.

The Petroleum Ministry said in a notification the enhanced allocation will be based on the average daily supply of cylinders provided to migrant workers.

The revised allocation goes beyond the earlier cap of 20 per cent specified in March announcement.

The government also said that the additional 5-kg FTL cylinders will be placed at the disposal of state governments and their Food and Civil Supplies Departments for distribution exclusively to migrant labourers with the assistance of oil marketing companies (OMCs).

Earlier, the government had said it was making all efforts to ensure adequate availability of petrol, diesel and LPG amid the prevailing geopolitical situation, while advising citizens to avoid panic buying and rely only on official sources for information.

Consumers were also encouraged to use digital modes for LPG bookings and minimise visits to distributors unless necessary.

The government has prioritised domestic LPG and PNG supplies, along with critical sectors such as hospitals and educational institutions.

It has also implemented several demand and supply-side measures, including enhancing refinery output and increasing LPG booking intervals to 25 days in urban areas and up to 45 days in rural areas.

To ease pressure on LPG demand, alternate fuels such as kerosene and coal have been made available, while states have been advised to expand PNG connections.

The government also said there has been no disruption in LPG supply affecting migrant workers.

According to official data, around 51 lakh domestic LPG cylinders were delivered recently, with online bookings rising to 95 per cent and delivery authentication-based distribution increasing significantly to curb diversion.

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Taxes, margins eat half of Pakistan’s petrol price, consumers cry: Report

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New Delhi, April 4: Pakistani consumers are bearing almost half of petrol’s retail cost in the form of government levies and industry profit margins, an internal government document has revealed, coming just a day after a massive increase in the prices of both petrol and diesel was announced, a report said.

Petroleum Minister Ali Pervaiz Malik, speaking alongside Finance Minister Muhammad Aurangzeb at a press briefing, announced a Rs 137.23-per-litre rise in petrol prices, pushing the retail rate to Rs 458.41 per litre.

Moreover, high-speed diesel climbed even more steeply, up Rs 184.49 per litre to a new benchmark of Rs 520.35.

Both hikes were attributed to disruptions in the global oil supply chain stemming from the ongoing conflict in the Middle East.

The Ministry of Energy’s pricing document lays bare a cost structure that places the ex-refinery price of petrol at Rs 247.15 per litre — less than the Rs 211.26 per litre piled on through taxes and margins.

Of that non-product portion, a petroleum levy alone accounts for Rs 160.61 per litre, followed by Rs 24.12 in customs duty and Rs 2.50 under the climate support levy.

The inland freight margin adds another Rs 7.52, while oil marketing companies (OMCs) collect Rs 7.87 in profit and pump dealers retain an Rs 8.64 commission per litre.

The picture is markedly different for diesel consumers. The ex-refinery price of high-speed diesel stands at Rs 461.23 per litre, and, unlike petrol, diesel currently attracts no petroleum levy.

In addition, combined taxes and margins on diesel total Rs 59.12 per litre — 11.36 per cent of the retail price — comprising Rs 35.74 in customs duty, Rs 4.37 for inland freight, Rs 7.87 in OMC profit, Rs 8.64 for dealers, and the Rs 2.50 climate levy.

The disclosures have drawn fresh scrutiny to the government’s fiscal strategy, with petrol’s tax-and-margin share more than four times that of diesel, even as pump prices for both fuels reach record highs.

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