Government - Caution idiot(s) at work - "retrospectively"

After the "retrospective" clarification by the government to collect some "free" money from vodafone comes this shocker from the delhi government.

kindly refer http://economictimes.indiatimes.com/markets/real-estate/news-/all-power-of-attorney-property-deals-banned-in-delhi-transactions-since-october-2011-declared-void/articleshow/12990636.cms?adcode=13

The joker wants to invalidate all registered transfers with retrospective effect from October 2011. Thus the sellers will now want more and this will create a whole lot of new litigation.

This is a disaster waiting to happen as there is a lot of such transactions happening across the country in other states even now. Just because the supreme court has made a ruling doent mean it is applicable from that date. It can only be applicable from the date that same is communicated and uniformly applied by the government machinery which in this case has taken over 7 months.

The main purpose of the supreme court order was to reduce litigation - the exact opposite is being achieved with this ridiculous "retrospective" order.

Problem point:

The supreme court knows about the idiots in government - what stopped them from issuing an order to all the states/ UT's that the same is to be implemented in 60days and compliance report to be submitted in the courts and that all transactions till the respective dates of transactions are valid?

As usual something doesnt smell right as the only people to benefit from all this are the benami users who would have got rid of all their properties in the past 6-7 months (these people are normally the politicians/ civil servants etc)

TATA's Gift to Financial Institutions

TISCO made an issue of perpetual bonds giving a coupon of 11.8% (yes you are reading it right) in March 2011. Funnily this was a private placement and not open to the public. Now one year later one of the private institutions is offloading these bonds at a premium to face value of close to 12%. This is after getting the interest of 11.8% for the first year resulting in a total return of close to 23.8%.

Diwali came real early for these insitutions.

Now the question is?
1. Why did Tisco sell only privately when they could have sold the same to the public and possibly also saved some money on the coupon rate?
2. Why is the financial institution selling this bond now to its clients when the RBI has just signalled a rate reversal in policy stance?

The Tisco CFO sure has some explaining to do, as to how he failed to secure the best rate and terms for the debt raised by him? This is surely not some unknown brand for him to justify this gift of 12% to the financial institutions OR was it the payback for these institutions supporting the public offer made by the company at 610/- ?

Buffeted by age?

Warren Buffet has kicked up a storm by commenting that the super rich in the US need to be taxed more and as a means of example he said that he paid 17% of his income as taxes whereas the people he employed paid in excess of 30%.

One needs to understand that taxes are a means of incentivising business. Thats why Capital Gains taxes are lower than other forms of taxes. Also incentives for exports are given in countries with net forex outflows (like India).

The issues that need to be discussed is the abuse of these lower taxes (or nil taxes) and how corporations have set up tax free contracts. Just plugging these loopholes and reigning in Government expenditure would be more than enough.

Of course taxing the rich at higher slabs will not hurt BUT do you want to be branded a socialist in capitalist america?