The Week in Review for 08 July 2011

The Week in Review for 08 July 2011

The earnings season has started again and the first result in is encouraging. On Friday mortgage lender HDFC reported its earnings for the Q1 results. And while the company posted a profit, it fell below some analyst estimates. Profit after tax climbed 22% to 844.5 crore. And loans rose also rose 22% to 1.24 trillion. HDFC’s results come at a time when housing demand is falling because of high prices and rising interest rates. Shares of the firm lost 1.49% on the BSE to 711.95.

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The Supreme Court has taken the fight against corruption into its own hands. On Monday the court announced the creation of a special investigative team to hunt for black money stowed away overseas. The team in question was created by upgrading a high-powered committee of government officers into an SIT. The SIT will be headed by two retired Supreme Court judges, who will act as chairman and vice-chairman.

In yet another development, the Supreme Court has knocked down the UP government’s acquisition of land in Greater Noida on the outskirts of Delhi. On Wednesday it upheld a ruling by the Allahabad high court that told the government to return the land. The Supreme Court also fined the Greater Noida Industrial Development Authority 10 lakh for allowing land to be misused. The authority has bought 156 acres of land from farmers for industrial use, but then handed it over to real estate companies. Meanwhile, developers affected by the judgment say they’ll either offer their clients new projects or refund them.

The government is finally moving to bring MFI’s under the purview of the Reserve Bank. It has released the draft of a bill to regulate the industry. Under the proposed legislation, new MFIs would have to register with RBI before starting business. And existing ones will have to apply for registration within three months of the law coming into effect. What’s more, the Reserve Bank will be able to place caps on margins and interest rates and also set repayment schedules.