LITIGATION FINANCING

Shreya Mathur | MBA 4 | 2022-24

You must have read one of the online reports proposing that the Swiss banned electric vehicles (EVs) So are EVs prohibited in the nation? There’s more to it.

SWITZERLAND’S ELECTRICITY CRISIS

The country has been facing an electricity crisis that has caught the attention of many around the world Switzerland relies heavily on hydroelectric power, which accounts for around 60% of the country's electricity generation. However, a combination of factors such as low water levels and the decommissioning of nuclear power plants has led to a shortage of electricity in the country.

The electricity crisis in Switzerland began in the winter of 2021 when the country faced record-low water levels due to a prolonged drought. Hydroelectric power plants rely on water to generate electricity, and the low water levels meant that the plants could generate less electricity than needed.

As a result, Switzerland had to import electricity from neighboring countries to meet its energy demands This situation was worsened by the decommissioning of the Mühleberg nuclear power plant in December 2019 The plant generated around 5% of the country's electricity and its closure added to the electricity shortage.

The electricity crisis in Switzerland began in the winter of 2021 when the country faced record-low water levels due to a prolonged drought Hydroelectric power plants rely on water to generate electricity, and the low water levels meant that the plants could generate less electricity than needed As a result, Switzerland had to import electricity from neighboring countries to meet its energy demands This situation was worsened by the decommissioning of the Mühleberg nuclear power plant in December 2019 The plant generated around 5% of the country's electricity and its closure added to the electricity shortage.

EUROPE’S ENERGY CRISIS

The ongoing conflict between Ukraine and Russia has had significant effects on energy supplies in Europe, but it is not the only factor contributing to the current energy crisis in the region. The crisis is a complex issue that involves a combination of factors, including geopolitical tensions, weatherrelated events, energy policies, and supply chain disruptions.

One of the main reasons for the energy crisis is the high demand for energy due to cold weather conditions in the winter months, which has put pressure on energy supplies across Europe At the same time, there have been supply chain disruptions, including reduced gas supplies from Russia, which is a major gas supplier to Europe This reduction in supplies is due to the ongoing conflict with Ukraine, as Russia has been using gas as a political tool in the conflict. In addition, the pandemic has caused disruptions in the supply chain, which has impacted the availability of energy

The situation has been further complicated by the transition to renewable energy sources, which has led to a reduction in the availability of traditional sources of energy, such as coal and natural gas. This has resulted in higher prices for energy, which is putting pressure on households and businesses.

Overall, the energy crisis in Europe is a complex issue that involves multiple factors, including the ongoing conflict between Ukraine and Russia It is a reminder of the importance of diversifying energy sources and investing in renewable energy to ensure energy security and reduce dependence on traditional sources of energy

The Real Picture

In the last few days, reports in various media outlets have suggested that Switzerland was planning to drive bans for electric cars The "Ordinance on Restrictions and Prohibitions on the Use of Electric Energy" serves as the foundation for the reports. Currently, this is merely a proposal that the Swiss Federal Council is putting together as part of an emergency response to get equipped for the prospect of an electrical shortage.

To ensure the nation's electricity supply, the proposed ordinance governs "restrictions and prohibitions on the use of electrical energy." In the case of a crisis, it describes four potential escalation levels within which the implementation of restrictions would at best be staggered. Only at escalation level 3 is e-mobility identified as one of many potential solutions

According to that statement, "The private use of electric automobiles is only permitted for really necessary travels (e.g. exercising one ’ s profession, shopping, visiting the doctor, attending religious events, attending court appointments).”

So, Switzerland is ready in case there is a power outage According to the proposal, the government intends to impose restrictions on private properties and may even prohibit concerts, plays, and athletic events.

Switzerland intends to restrict the usage of electric vehicles to only the most necessary trips if the situation gets worse. Aside from that, the Swiss power plan also includes restrictions on bitcoin mining and the escalators being turned off.

Germany and Spain have developed similar proposals to conserve electricity The German plan is being trialed for six months and includes restrictions on the heating of swimming pools and a recommendation that heating in buildings is set at 19 degrees Celsius.

Thus we can safely say that Switzerland’s preparation for a harsh winter is going to keep the citizens on their toes and off the EV grids more often.

BharatPe is a leading Indian fintech company that offers a range of payment and financial services to small and mediumsized businesses. The company has recently made headlines with the launch of its "12% Club" initiative, which is designed to help merchants grow their businesses and achieve greater financial success.

The 12% Club initiative is named after the top 12 percent of BharatPe merchants who have achieved the highest transaction volumes and revenues on the platform These high-performing merchants are given exclusive access to a range of benefits and services, including discounted transaction fees, personalized business coaching, and access to special events and networking opportunities.

By targeting the top 12 percent of its merchant base, BharatPe is aiming to support and incentivize its most successful and promising business partners. The company recognizes that these high- performing merchants play a critical role in driving the growth and success of the BharatPe platform as a whole, and it is committed to providing them with the resources and support they need to continue thriving

At the same time, the 12% Club initiative also has important implications for the broader Indian economy By supporting the growth and success of small and mediumsized businesses, BharatPe is helping to drive economic development and job creation across the country This is particularly important in light of the ongoing economic challenges posed by the COVID-19 pandemic, which has hit many small businesses hard

Moreover, by offering personalized coaching and other support services to its high-performing merchants, BharatPe is helping to level the playing field and reduce existing inequalities in the business landscape. Many small business owners in

India face significant barriers to success, including limited access to financing, lack of business knowledge and skills, and a challenging regulatory environment. By providing targeted support to its most promising merchants, BharatPe is helping to address these challenges and promote greater economic inclusion and opportunity

Advantages

Targeted support for high-performing merchants: By offering exclusive benefits and personalized coaching to its top 12% of merchants, BharatPe is providing targeted support to those who are already achieving high transaction volumes and revenues This can help to incentivize and reward these merchants, and provide them with the resources they need to continue growing and succeeding on the platform

Economic development: The 12% Club initiative has the potential to drive economic development and job creation across India. By supporting the growth and success of small and medium-sized businesses, BharatPe is helping to create a more prosperous and inclusive business landscape in the country.

Innovation in fintech industry: The 12% Club initiative also demonstrates the potential for fintech companies to drive innovation and growth in the Indian economy By offering personalized services and support to merchants, BharatPe is positioning itself as a leader in this space and helping to drive the digitization and modernization of the Indian economy

Disadvantages

Competition among merchants: The 12% Club initiative could potentially create a sense of competition and pressure among BharatPe merchants, as everyone strives to join the elite 12% This could lead to resentment and dissatisfaction among those who are not selected for the club, and may ultimately harm the overall business ecosystem on the platform

Criteria for selection: There may be questions about how BharatPe selects and measures its high-performing merchants, and whether these criteria are fair and transparent. If merchants feel that the selection process is arbitrary or biased, they may lose trust in the platform and look for other options.

Impact Of Diffrent Sectors

BharatPe's 12% Club initiative has the potential to impact a range of different sectors in India, including the fintech industry, small and medium-sized businesses, and the broader economy.

In the fintech industry, the 12% Club initiative demonstrates the growing importance of personalized services and support for merchants in India. As the Indian economy continues to digitize and shift towards cashless payments, fintech companies like BharatPe are playing an increasingly important role in providing the personalized coaching and other resources to help them grow and succeed Small business owners in India face a range of challenges, from limited access to financing to a lack of business knowledge and skills By providing targeted support to its most promising merchants, BharatPe is helping to level the playing field and reduce these barriers to success This could have a ripple effect throughout the Indian economy, as successful small businesses create jobs and drive economic growth in their communities

At the same time, the 12% Club initiative also has important implications for the broader Indian economy By supporting the growth and success of small and mediumsized businesses, BharatPe is helping to drive economic development and job creation across the country This is particularly important in light of the ongoing economic challenges posed by the COVID-19 pandemic, which has hit many small businesses hard By offering personalized coaching and other support services to its high-performing merchants, BharatPe is helping to mitigate the impact of the pandemic and promote greater economic resilience and recovery

Overall, the 12% Club initiative has the potential to make a significant impact on a range of different sectors in India By supporting the growth and success of small and medium-sized businesses, promoting innovation and growth in the fintech industry, and driving economic development and job creation across the country, BharatPe is demonstrating the power of targeted support and incentives to drive positive change and create a more equitable and prosperous business landscape in India

Adani And Hindenburg Issue

JinalShah|MBA-06|2022-24

Abhigyan Verma| MBA 3 | 2022-2024

Introduction

Ltcm Crisis A Thorough Examination Of The Report

The assessment of the Adani Group by Hindenburg Research, which was released in January 2023, is a critical analysis of the operational and financial practices employed by the Indian corporation.

The story has sparked a heated debate over the business practices of one of India's largest firms and raises serious questions about the ethics and legality of the Adani Group's activities

The Adani Group is a multinational corporation with interests in ports, logistics, agribusiness, energy, real estate, and defense. The company generated more than $11 billion in revenue during the fiscal year 2021, making it a key player in the Indian corporate world According to the Hindenburg investigation, the company used unethical accounting methods to inflate its wealth and understate its obligations

According to the Hindenburg probe, Adani Group used aggressive and unconventional accounting methods to overstate its debt and understate its revenues The analysis reveals that the company has accumulated sizable revenues from joint ventures and subsidiaries that are not shown in its consolidated financial statements, which paints an unreliable picture of the company's financial health and profitability.

In addition to these financial irregularities, the Hindenburg probe holds the Adani Group accountable for insider trading and tax violations. The article claims that documents acquired from Indian governmental and regulatory authorities back up these accusations.

The report also criticizes Adani Group for its environmental practices, alleging that the company has destroyed a lot of trees, endangered fragile ecosystems, contaminated groundwater, and polluted the atmosphere Also, the study found that Adani Group ignored community concerns and violated environmental rules. Adani Group has angrily denied the claims made in the Hindenburg investigation, labeling them as "baseless and defamatory."

The company has made it apparent that it complies fully with all Indian rules and regulations and conducts business in accordance with the highest ethical and environmental standards It is important to keep in mind that Hindenburg Research is a short-selling research firm and that many of its company studies are unfavorable.

The business has an interest in seeing the price of the Adani Group's stock decline because it has shorted the stock. This suggests that the company will make money even if the stock price drops So, it is essential to look for independent confirmation of the claims made and to proceed with great caution while evaluating the report's findings

The release of the Hindenburg report has already caused a drop in the price of Adani Group's stock The report has also sparked a bigger discussion about the business practices of Indian firms and the need for greater accountability and transparency.

REPORT'S MAIN POINTS

The report was extremely critical of Adani's corporate governance, financial results, and commercial methods

The report's primary points include the following, among others:

1 Business practices: The analysis indicates that Adani has engaged in a number of dubious business practices in the past, such as fraud and environmental violations Additionally, it alleges that the company used its political connections to influence the Indian government for favorable treatment

2. Adani has inadequate corporate governance, according to Hindenburg Research, and Gautam Adani controls the company to the detriment of minority shareholders

3 Financial performance: The analysis indicates that Adani's financial success is exaggerated and that it has a poor track record of honoring its obligations. It further claims that Adani has a history of overstating its profitability and amassing large amounts of debt

4. A significant amount of Adani's overall activities are related to its port operations, and the report claims the company has misused its political connections to gain an unfair competitive advantage.

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Concerns regarding the environment:

According to Hindenburg Research, Adani has had a history of breaking environmental rules, and the company's proposed Carmichael coal project in Australia poses a serious threat to the environment

ADANI’S RESPONSE

Adani Group's response to the allegations stated in the Hindenburg Research report has been disputed, and the company has sued the research firm in response The company has responded to the piece with a variety of statements refuting the assertions and defending its business practices.

Conclusion

Several problems with the Adani Group's operational and financial practices as well as its environmental impact are raised in the Hindenburg report. Investors and authorities must take these concerns seriously and carefully investigate the claims made in the report, despite the fact that Adani Group has angrily denied the allegations. The study's release serves as a reminder of how important it is to make sure that firms operate ethically and sustainably as well as how important it is to increase transparency and accountability in the business world

IS GIFT CITY THE NEXT BIG FINANCIAL HUB?

“Happiness is having a large, loving & caring, close-knit family in another city” Gujarat International Financial Tech-City (GIFT), a worldwide monetary and IT/ITES centre point in the territory of Gujarat, a first of its sort smart city, is being developed by GIFTCL, which is a joint endeavour of Gujarat Urban Development Company Ltd (GUDCL) and Infrastructure Leasing and Financial Services (IL&FS) It is situated between Ahmedabad and Gandhinagar and is India's most memorable functional greenfield tech city and global financial hub, which the Govt of Gujarat advanced as a greenfield project

The city is situated on the banks of the Sabarmati Waterway and is around 12 km from Sardar Vallabhbhai Patel international airport. The entire region for the improvement of GIFT is 886 acres of land out of which the SEZ (Special Economic Zone) is 261 acres of land, including 67%

Source: TOI

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Gift City As A Turning Point

GIFT City focuses on a transit-oriented improvement in view of walk to work approach, with a pedestrian friendly infrastructure and with zero severe accidents. With its simple and quick versatility with least struggles and productive public vehicle frameworks which lessen the per capita energy basket, it would go about as an impetus for improvement in its hinterland. The essential work in GIFT is supposed to lead to rise to number of optional businesses GIFT would not just draw in individuals from the close by metropolitan focuses, Ahmedabad, and Gandhinagar, yet in addition empower advancement in the near-by areas Therefore, considering the improvement of the surrounding region of GIFT in plan of transport infrastructure is critical.

Our hon’ble Prime Minister, Mr Narendra Modi has started with IIBX-India International Bullion Exchange Ltd, which caters gold and India being one of the largest importers of gold, India to some extent can control the supply and demand of gold and thus, its prices This may transform India from gold price takers togold price setters.

The Govt of Gujarat has initiated tax incentives for units in IFSC and for SEZ units (non-IFSC). Among other tax benefits, units in IFSC will get 100% tax exemption for 10 consecutive years out of 15 years, an IFSC unit has the flexibility to choose any 10 years out of 15 years block. In the City, NonResident Indians (NRIs) and Foreign Institutional Investor (FIIs) get the benefit of .low tax rates on investments made in IFSC.

Memorandum of Understandings (MoUs),

were traded by IFSCA with foreign regulatory authorities, Monetary Authority of Singapore, Commission de Surveillance du Secteur Financier, Luxembourg and Qatar Financial Centre Authority The MoUs will promote greater collaboration between IFSCA and these regulatory bodies through, among other things, the exchange of information and sharing of best practices and capacity building for a brighter future. Even the subsidiaries of BSE and NSE are set up here to encourage trading through international exchanges Singapore stock exchange has also been registered with NSE’s subsidiary to encourage trading in high volumes

WHAT GIFT CITY IS LACKING?

The officies that have been registered here aren’t fully operational yet, which means it will still take quite some time to be fully functional.

The volumes of transactions and the assets of exchanges of Singapore & Hongkong are quite higher as compared to the volumes of the subsidiaries of BSE and NSE and are also facing losses currently.

The social life here is nearly dead as workers after working, get back to their homes as there isn’t many places to socialise.

There are reports that GIFT City has been delayed to draw in ventures, since it was conceptualized in 2007 by then Gujarat Chief Minister Narendra Modi It wasn't long after Modi become PM in 2014 that investments began to flow to GIFT City. Lately, Singapore High Commissioner Simon Wong said it is "hard" for Singaporeans to live in GIFT City as it is “quite a ghost town” in the wake of working hours. He even said that the "bylaws are exceptionally extreme" and "it is challenging to construct a monetary focus", according to an Indian Express report

Conclusion

Now the two most important questions to answer-

“IS GIFT-City REALLY A GIFT TO THE NATION”?

With a growing economy of our nation, we see this as a huge scope for India to turn the tables and emerge as an economic giant India is one of the most attractive centres of investment and GIFT has perfectly alligned its facilities with the requirements of our economy by generating employment, reveneue at a greater scale and helping become one of the biggest financial hubs

In conclusion, while the GIFT-City has the potential to bring significant economic benefits to India, its success depends on various factors including its ability to attract and retain businesses and skilled professionals, its environmental sustainability and its impact on local communities. Ultimately, whether or not it is a gift to the nation will depend upon how well it is able to deliver on its promises and contribute to the overall development and prosperity of India.