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Will tax on withdrawing cash fix tax evasion or black money?

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It is no secret that the Modi government is undertaking various steps to move India towards a cashless or less-cash economy. The government believes that cashless transactions can help in curbing generation of black money as every such transaction will be documented. Government further believes that this will hurt fake currency mafia as well as push people towards better tax compliance.

While there is no doubt that cashless transactions will indeed help achieve those objectives, the move that pushes people towards cashless transactions need to be analysed for their effectiveness and feasibility. Demonetisation was one such step that was widely debated.

Now the next move – reportedly suggested by a panel to the government – is to introduce tax on cash withdrawals above 50000 rupees, so that people prefer cashless transactions. The panel is headed by Andhra Pradesh Chief Minister Chandrababu Naidu, who believes that the government could accept the suggestion and incorporate it into the Union Budget that will be presented on 1st February this year.

But will this withdrawal tax really help achieve the objectives of curbing black money and parallel economy? Let’s try to understand the issue:

The Cash Chain

Here is a representative cash chain. Cash is withdrawn from the system and from then it travels through various mediums till it reaches the bank again.

The cash chain
How typically cash withdrawals are used by a common man

Overall, the cash chain has 3 types of transactions:

  1. Type I – Where cash is withdrawn and used for an unaccounted transaction
  2. Type II – Cash to Cash unaccounted transactions
  3. Type III – Cash transactions which are disclosed

Of the 3, Type I and II can be termed as ‘Black’ transactions as they are not accounted for and among these two, only Type I will be taxed. Additionally, Type I is only the trigger which sets into motion the downstream transactions.

Type II which form bulk of the transactions in the cash chain will not be affected at all. Imagine this flow as a race track where you place a small speed breaker at the start of the track. Once you cross the initial hurdle you are free to step on the accelerator.

One argument here is that II and III are dependent on I and if Type I is reduced it will have a downstream impact on the other types as well. To test this argument, let’s dive a bit deeper and look at the Type I in detail.

The Buyer’s Burden

Since the proposed concept is to tax the buyer, it is the buyer who has to make the decision as to which mode of payment he prefers. So let us look at transactions from a buyer perspective:

  1. Low Hanging fruit: These are the transactions where the buyer can easily shift to other modes of payment. This is the low hanging fruit where alternatives are readily available and suit the buyer. So buyer will be tempted to go for non-cash means of purchase. For example, buying groceries from organized retail or merchants who accept cards, buy from e-commerce sites etc.
  2. Hard to Crack: These are the cases where even if the buyer wants to pay by card, seller offers no such alternative. Such transactions will not be affected by withdrawal tax. For example, Auto driver does not accept card, doctor does not accept card, a small-scale manufacturer wants to buy raw material but seller wants cash, contractor employs daily wage labour who does not have a bank account, BMC official asks for bribe to sign on papers etc.
  3. Where Cash withdrawal is cheaper than the alternative: It is highly unlikely that the withdrawal tax will be very high (say 10-20%). Most probably it will be in the sub 3% bracket. 3% is also a deterrent but not in cases where the alternative is even more expensive. For example, Paying bribe to the traffic cop rather than getting a challan, sellers passing on the transaction charges to the buyer if payment is by card, buyer wants to save taxes while registering property etc. Plus the tax slabs are higher than withdrawal tax and the seller can always offer a nominal discount if payment is by cash to save taxes. Transactions of such nature will also not be affected by withdrawal tax.
  4. Cash is King: The fourth type are the ones where buyer himself wants to hide the transaction. Here he has no alternative but to pay by cash. These will also not be affected by the proposed tax. For example, Buying drugs!

As we drill down deeper we can observe the gamut of transactions which the buyer will reconsider due to transaction tax are very low. Only Type I type of transactions will fall under this tax and even these will only be partially impacted. Cash will slowly seep through and build up reserves in the Type II transaction market.

Additionally, withdrawal tax is making cash dearer. And what do we do when something becomes dearer? We hold it close. Velocity of cash will reduce and people will also be reluctant to give cash back to the banks. As time passes and ample cash is available in the market, power of withdrawal tax will reduce severely.

In short – you cannot fix a long pipe having numerous leakages by placing a thin filter at the mouth of the pipe. Water will slowly seep in, build up and start leaking again.

Kejriwal shares unverified ‘IB report’ showing clean sweep for AAP in Punjab

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Twitter has long been called Arvind Kejriwal’s second home/office as evident by how active he is on the micro-blogging site. And the Republic Day was no exception. After tweeting profusely against the Modi government, Kejriwal proceeded to attend the R-Day parade, and then he came back on Twitter to re-tweet this:

Going by the face value of the above picture, the tweet appears to be from Markandey Katju, the ex-CJI of India wherein he is sharing a supposed IB report about AAP sweeping the Punjab assembly elections by bagging more than 100 out of 117 seats.

A former Chief Justice sharing an “intelligence report” surely makes it believable, except that the devil lies in the details.

The first detail is that the Twitter account @katjuPCI is a ‘parody’ account; the real Markandey Katju goes by the @mkatju handle. As it happens on Twitter, most parodies indulge in their own propaganda rather than parodying the person they are supposed to imitate. This particular account is no different and indulges in pro-AAP propaganda.

Now coming to the supposed IB report, there have been earlier instances where the mainstream media has reported IB carrying out such pre-poll surveys. Most of these reports are “source based” and such reports are never officially released. As we had earlier argued, source based journalism should be taken with a pinch of salt.

And we are not saying it just because this supposed IB report predicts an AAP victory – which may as well happen when results come out in March – but because earlier such reports have proved to be wrong. For example, a supposed IB report in January 2015 gave AAP just 14 out of 70 seats in the Delhi assembly elections, while the party went on to win 67 seats.

Furthermore, there is no mention of any such IB report – citing “sources”, of course – in any major dailies or publications. It seems to be a product of WhatsApp News Network, which got shared on Twitter by various pro-AAP handles, and eventually by Arvind Kejriwal himself:


The picture further says “Confidential Report – Only for JEO use” that sounds a bit random and made up to appear like some secret IB lingo.

Another reason why this IB report could be fake is that if it indeed is real/leaked, Kejriwal need not have had to seek the services of a ‘parody’ Twitter account to spread the word as there are many journalists in the mainstream media who would gladly do the same to help him and the party.

So in all probabilities, Delhi Chief Minister and AAP supremo shared an unverified WhatsApp rumour from his verified and official Twitter account. This is not surprising given that Arvind Kejriwal had shared various misleading information and blatant lies through his Twitter account last year.

And this trend will continue because the so-called intelligentsia of the country never feels the need to question Kejriwal and his ways, and neither does the media of this country hold the ‘Desi Donald Trump‘ accountable for spreading ‘fake news’.

Janta ka Reporter’s latest hit-job is on Defence Minister Manohar Parrikar

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In April last year, AAP supporting news blog Janta Ka Reporter (JKR) had led the entire Indian media on a wild goose chase. Based on a tweet, which was itself based on a whatsapp forward, JKR broke an “exclusive” story, without any cross verification of facts, that Aamir Khan had adopted 2 drought hit villages in India. Indian media picked up this news and relayed it all over, only to be told later, that Aamir Khan had done no such thing.

Come 2017, JKR has done this all over again, and soon enough all of Indian media may pick-up this story. JKR today claimed that Defence Minister Manohar Parrikar was seen “visibly dozing off” during the Republic Day parade in Delhi. The story was based on the following picture circulating on the social media:

One of the first people to share this picture was an AAP supporting Twitter user:


This tweet was then shared by AAP leaning journalist Ashutosh Mishra and other usual suspects. Soon JKR also picked up this image and concluded that the Defence Minister was “visibly dozing off”.

Eventually, JKR’s story reached the esteemed forums of Pakistani websites.

Thankfully for us, and unfortunately for JKR, in their article, they mentioned that this “dozing off” was seen on TV just when Lakshadweep’s tableau was passing by the dignitaries. This allowed us to dig into the source of the information.

One look at the video from this period and one can clearly see that just seconds before Parrikar lowered his gaze, he was awake and watching the parade:

He was looking at the parade and then in sudden movement lowered his gaze and appeared to close his eyes, after which the video cuts back to the parade. From a video of less than 5 seconds, where Parrikar can be seen with his eyes open as well as closed, it is actually impossible to say conclusively that he had fallen asleep. The sudden, deliberate movement of his head though would suggest he wasn’t asleep.

For those who can not see the High Definition video, here are the frames from seconds before he closed his eyes:

This is reminiscent of the time when in 2015 it was claimed that PM Modi was caught sleeping in the Parliament, based on a single screen-grab, whereas the full video showed he wasn’t asleep. In 2016, Rahul Gandhi too was similarly “caught sleeping” in the parliament. In Rahul’s case though the allegation was not based on a single image but based on a video in which he was seen with his eyes closed. The video too couldn’t be called conclusive evidence, but Congress spokespersons made a hash of defending him.

It is odd that in the day and age of social media, media houses still try to conjure news items based on a single image.

This guy found too many ‘Hindu signs’ in Republic Day parade, gets panned

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A journalist called Mihir Sharma, who has a long list of controversies to his name [1][2] today looked like adding another feather to his cap after complaining about too many Hindu festival related floats (tableaux) in the Republic Day parade.


His intrigue, which was a nice attempt to hide his bigotry, ended up betraying his bigotry especially with term like “even Goa”. In the world view of Mihir Sharma, Goa should now do away with anything Hindu as it has significant Christian population.

For Sharma, people wearing saffron (Hindus in appearance) are ‘random guys’ in Goa, even though Goa still is a Hindu majority state with them forming 66% of the state’s population, at least on paper.

So not surprisingly people took exception to his comments and replied to in style:

Lt Col Rohit Agarwal (retd) showcased the Hindu communal influence in the Indian constitution to Mihir Sharma:


Another pointed out that the Flypast by fighter jets too was communal:


Some tried to test if Sharma had some allergy against the saffron colour:


Did he never notice our national flag?


Well, Hindus are now below 80% of the Indian population, maybe that’s why Mihir believes that these symbols are disproportionate?


Coming back to “even Goa”, what would have been a better depiction of the state during the R-Day parade? The inquisition?


The secular tolerant dude can’t tolerate two random dudes in saffron:


This accurately summed up the whole incident:


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Resettlement of Kashmiri Hindus – The inside story and the way forward

It was a bright, sunny day across the fertile plains of North India in the early winters of 2013. Narendra Modi was scheduled to address his first ever rally in the state of Jammu & Kashmir as the then PM candidate of the Bharatiya Janata Party (BJP). The rally was aptly named ‘Lalkaar’ given that Modi was seen as the beacon of hope for hundreds of millions of people in the country, looking for an end to the organized plunder of the nation’s resources by the UPA government. About two lakh people from different parts of the state had come to attend the mammoth rally and hear Narendra Modi speak.

Around noon, Modi began his address. He spoke on a range of issues and took pains to call out the names of scores of big and small ethnic groups in the state, including the micro-minorities, demonstrating how he understood and personally related to their diverse sets of problems. Modi spoke for about 45 minutes, but not once did he bring up the name of Kashmiri Hindus. He had made a statement by omission.

About a year later, Narendra Modi, now the Prime Minister of India, was closely following the politics of J&K as the assembly elections were just around the corner. His chief strategist, Amit Shah, also the president of the party, monitored the BJP’s state campaign in the hope of attaining more than half the seats in the state legislature to enable them to form the government independently. This was a pipe-dream and to give their ‘mission 44+’ rhetoric the credibility that it sorely lacked, they banked on the displaced Kashmiri Hindus to vote for them.

When the inevitable results were out, Mr. Shah promptly placed the blame of BJP’s dismal, but totally predictable, performance in Kashmir on Kashmiri Hindus. Ironically, he failed to acknowledge that the same community had played a limited, but important, role in their decisive victory on the other side of the Banihal tunnel, with BJP getting an unprecedented 25 seats, all from Jammu.

Eventually, after much political manipulation and endless negotiations with a hitherto sworn enemy, the BJP, for the first time, formed a coalition government with PDP in the state of Jammu & Kashmir. As there was considerable opposition to what some called an ‘unholy’ alliance, the party assured its voters that they were taking this course in order to get the proverbial foot inside the door of Kashmir’s volatile political ecosystem and also, to serve the people of Jammu, whom they couldn’t afford to let down. However, it turned out that their coalition dharma prevented them from making any progress whatsoever in terms of redefining the priorities of the state politics away from the longstanding Kashmir-centric obsession.

Different governments – Same Lies

The central government’s quest for resettling Kashmiri Hindus back in the valley is as old as the community’s exile. Successive governments have tried to do their bit, given that the inconvenient fact of the violent displacement of half a million people raises fundamental questions on the very claim that India makes over Kashmir. After all, if the state cannot guarantee its peaceful citizens in a particular territory the fundamental right to life, how can it claim control over it? Sadly, the government’s push for resettling the displaced community has been consistently misplaced and insincere.

The very first chance of the reversal of what came to be euphemistically referred to as the ‘migration’ of Hindus was lost in 1990 itself when the government recalled Governor Jagmohan, the most competent and experienced administrator that the state ever had. By taking such a hasty and imprudent call, the government effectively shut out all possibilities of the timely return of the Hindus. In the years that followed, all our Prime Ministers, perhaps with the exception of PV Narasimha Rao, issued platitudes on the issue of return of Hindus and tried to engage in dialogue with groups such as Hurriyat, which comprised mostly of ex-terrorists, who by now were being called as ‘separatists’.

Atal Bihari Vajpayee played a major role in this mainstreaming of separatism in the national political discourse and much to the dismay of Kashmiri Hindus, actively popularized erroneous notions about the nature of conflict in Kashmir. His irresponsible promotion of terms such as ‘Kashmiriyat’, advertised as syncretism unique to the valley but which is, in reality, another name for Kashmiri sub-nationalism, led to a drastic change in how ordinary Indians viewed the Kashmir conflict. In this way, the NDA government under Vajpayee successfully portrayed the religious conflict of Kashmir as a political problem that asked for political solutions.

The UPA, on coming to power, worked out its policies in the new paradigm defined by the previous regime, and so began the new era of resettlement packages. As per the novel idea, the government announced economic incentives (roughly Rs. 7.5 lakh per family) for the displaced people that would help them return to their houses and repair them. But soon it dawned upon the experts who had come up with this idea that most of the houses did not belong to the original inhabitants anymore. Thus was born the idea of separate enclaves for Hindus.

However, in all this ingenuity, the one question that remained unanswered was whether the conditions that had led to the exile in the first place had improved or deteriorated. Now, as the religious fundamentalism behind the violence was being denied, the government had the impunity to declare that the root causes of the Kashmir problem were being addressed by engaging in dialogue with the ‘separatists’.

This rhetoric was further boosted by enticing some of the refugees living in dire poverty to shift to remote locations in the valley by providing them government jobs and then proclaiming success in the endeavour. As security of the returning population was no longer a consideration, it was made out to be that the Hindus were living happily in various parts of India and had no desire to go back. Thus the onus of return was transferred to Kashmiri Pandits.

Further, a narrative was promoted that Kashmiri Hindus have no leadership with whom the government can engage in any dialogue. The fact was that none of the major organizations representing Kashmiri Hindus agreed to the government’s proposal of sending them back as scapegoats and therefore, the dialogue broke down even before it began. As they could not find leaders to talk with, the government ended up engaging with dealers – those who toed the government’s line in exchange of petty favours.

As with everything else, it was expected that Narendra Modi would bring a fresh perspective to this business of resettling Hindus. However, his J&K rally before the election and his policies after getting elected demonstrate that he is only following the misguided policies of his predecessors and the latest announcement regarding the return of Hindus has pushed the Indian state over to the realm of delusion. As the BJD MP, Jay Panda tweeted:

Jay Panda’s tweet on the government’s new announcement

Despite the greater public expectations from the BJP, their policy related to Kashmiri Hindus often turns out to be worse than that of the Congress. While the Congress is associated with blatant appeasement politics, the BJP’s agenda in Kashmir is unmistakably anti-Hindu, in that they appear keen to whitewash the cultural genocide of Kashmiri Hindus by raising phoney slogans of “Kashmiriyat, Jamhuriyat and Insaniyat”, all of which is wholly rejected by their Hurriyat poster boys. There are historical reasons for this dangerous perversion.

Kashmiri Hindus and the RSS

Never in its history had the BJP played even a minor role in the politics of the Valley, owing to the uniquely skewed demographic equation in Kashmir. Just like the rest of the Indian society, the Sangh Parivar had little idea, because they had little experience, of the ground realities of Kashmiri politics, which has been heavily infused with the ideology of Muslim separatism since the earlier half of the twentieth century.

In contrast, the Congress was part of the state politics right from the time of Kashmir’s accession to India and ruled the state for many years. Therefore, even though the Congress party can be held directly responsible for the rise of insurgency in the valley, it cannot be accused of ignorance. Regardless of the cynical nature of Congress brand politics, their national leadership had the right inputs from their state units, who had their ears placed on the ground. Not so with the BJP.

As a consequence of the above, the leaders as well as the foot-soldiers of the RSS and BJP do not understand Kashmiri Hindu culture nor do they have an idea of the circumstances that led to half a million people getting uprooted from their home for millennia.

At the same time, there is hardly any doubt that the Sangh Parivar has little affection for the most famous man among Kashmiri Hindus – Pandit Jawaharlal Nehru. Although Nehru was self-admittedly a Hindu by accident of birth and had nothing to do with Kashmiri culture, yet he was, all said and done, a Kashmiri Pandit. It is also true that many Kashmiri Pandits in the valley held Nehru and later, his daughter Indira, in high esteem owing to a pride emanating from primitive tribalism. But that’s that.

However, Nehru’s antagonistic relationship with the Sangh Parivar has often resulted in a blanket prejudice against the ordinary Kashmiri Pandit, who is either stereotyped as the wily turncoat who betrays his own cause or a spineless snob who lacks the courage to defend himself. Like all stereotypes, these are reinforced by the selective recall of instances where Kashmiri Hindus have indeed acted that way. Sadly, the much talked about anti-intellectualism of the Sangh Parivar makes it impossible for them to look beyond these stereotypes.

Why Hindus fled

As explained above, the exodus of Hindus from the valley was a direct consequence of the rise of Jihadi terrorism in the late eighties. It had nothing to do with poverty, unemployment or an imagined alienation of the youth.

There are numerous self-declared Hindu nationalists, often RSS members, who believe that the Hindus could have offered a resistance to the Jihadi violence instead of fleeing from the valley. It is futile to debate on such wild prescriptions offered by people whose understanding of the valley is often informed by ‘nationalist’ messages on WhatsApp but it is important to lay down a few facts for the readers to make their own minds.

One, Hindus had been under siege in Kashmir not for a few years or decades but several centuries. Under such prolonged assault, survival and preservation of culture take precedence over guerilla warfare. Two, Hindus in the valley were overwhelmingly outnumbered by Muslims due to which the Hindus responded to daily harassment and mocking by tact rather than suicidal counter aggression. Three, the rise of jihad in Kashmir, just like anywhere else, was backed by foreign funds and the terrorists regularly crossed over to Pakistan to undergo ‘training’ in the act of waging war.

Terrorism was thus a well-planned and well-funded rebellion against the Indian state. According to this report, 6274 security personnel have died in terrorist attacks since 1988. The question to ask is that if a supremely organized, well armed and highly skilled force as the Indian Army has suffered so many fatalities ever since it has been deployed in Kashmir, what chance of success would an unorganized civilian counterattack have? In all probability, it would have resulted in genocide like the one in Rwanda.

Never mind the ‘Hindu nationalist’ jibes at the ‘escapism’ of Kashmiri Hindus, the reasons for their exile are absolutely clear. Therefore, for the government to say anything meaningful about the return of Kashmiri Hindus to the valley, it is imperative that they first take the root causes into cognizance and accordingly, devise their policies.

In short, Hindus cannot coexist with a radicalized majority in the valley and therefore, the government essentially has two options: Either they carve out a Union Territory for the displaced people with the full flow of Indian constitution (minus article 370) or else, they make arrangements to settle the exiled community somewhere else in India. Nothing else makes any sense.

CIA document claims Sweden stopped Bofors inquiry to save Rajiv Gandhi and their own politicians

As per laws passed in the US, documents are put up for automatic declassification after 25 years unless they fall under certain 9 narrow exceptions. So a CIA document dated 4th March 1988 regarding the Sweden’s Bofors Arms scandal was approved for release in 2014, and seems to have ended up in the public domain in December 2016 if one goes by reports. But before going any further:

What exactly was the Bofors scandal?

The Indian Government had finalized a $1.5 Billion deal with Swedish arms manufacturer Bofors in order to acquire 410 field howitzer guns. It was the largest defense deal in Sweden till date and like everything which looks too good to be true, it ran into problems. Allegations of bribery surfaced and it was reported that Indian Politicians and officials received kickbacks for the deal.

Ottavio Quattrocchi, who was a close friend of Rajiv and Sonia Gandhi, was reported as the main middleman in the deal. Its reported that Quattrocchi’s influence in the government was so high that Indian bureaucrats used to stand up when he visited them. This Quattrocchi connection among others ensured that Rajiv Gandhi got directly embroiled in the scam that eventually contributed to him losing the election in 1989.

What does this CIA document [pdf] say?

In the summary of the document, the CIA claims that investigation into the Bofors bribery was called off by the Swedish authorities in a bid to to prevent future revelations, which might embarrass the then Prime Minister of India Rajiv Gandhi. It also claimed that Swedish politicians cutting across party lines were culpable in some form or the other for the scandal, hence the inquiry was buried.

Also, apart from India there were countries like Iran, Singapore, Thailand, Taiwan among others, with whom the transactions carried out by Bofors were under the scanner for violation of norms and possible bribery.

After investigations had revealed that Bofors might have bribed Indian middlemen and officials, the Swedes carried out a national audit which concluded that as much as $40 Million were paid as commissions to middlemen. Both the Govt and Bofors has claimed that these payments were used to close the contracts with middlemen after Indian govt wished to exclude them from transactions:

After the audit, the Swedish police had initiated a separate investigation into the Bribery to Indian officials which though was terminated after Rajiv Gandhi went on a trip to Sweden in 1988:

The declassified CIA document does raise the question of a possible deal between Rajiv Gandhi and the Swedish authorities and whether the investigation was called off only to spare him of ’embarrassment’ or if it would have led to bigger mess.

Conclusion

Whatever said and done, the CIA felt that payments were almost certainly made to Indian officials either directly or indirectly to secure the $1.2 Billion deal.

After the word leaked causing difficulties for Rajiv Gandhi back home in India. Noble Industries (Bofors’s parent) too wished to avoid a bribery indictment. And to ensure both, the two sides cooperated and the details of payment were kept secret and the investigation was eventually called off.

This above stated CIA document suggests that both the Swede and Indian politicians were neck deep into the scandal, providing a possible explanation to why the matter was hushed up leading to it not being solved till date.

The Congress party keeps claiming that Bofors is a “dead horse” and flogging it won’t achieve anything. The party insists that no one in the Nehru-Gandhi family are guilty of personal corruption.

Subramanian Swamy has a point, Arnab Goswami’s ‘Republic’ could be in trouble

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BJP leader and founder of Virat Hindustan Sangam (VHS) Subramanian Swamy is no fan of Arnab Goswami. In a live debate, he once called Arnab a “dumbo” and “liar” who was allegedly attributing false statements to him. He never appeared on Arnab’s flagship show The Newshour after that, insisting that Arnab has to be made to undergo prayashchit (penance) first:


Looks like Arnab didn’t undergo the ‘required’ prayashchit and hence now he is being made to face the shraap (curse) of Swamy.

Earlier today, the former Union Minister revealed on Twitter that he had written a letter to the Ministry of Information & Broadcasting, informing about a possible violation of rules and laws by Arnab, since the former Times Now editor-in-chief had named his new venture “Republic”:



The letter is dated January 13, which means Swamy wrote to the ministry barely a month after it became a public knowledge that Arnab’s new venture will be called “Republic” and within a week of its social media debut.

But does the name violate the laws of the land?

It appears that Swamy does have a point, as the Emblems and Names (Prevention of improper use) Act of 1950 (pdf link) forbids use of certain terms ‘for the purpose of any trade, business, calling or profession’. Such terms are explained and included in the act, and under item 6 of the schedule, the term “Republic” is mentioned (subject to interpretation of the clause):

Screenshot of national emblems act
Part of the Schedule in the Emblems and Names act, 1950.

Apart from the terms mentioned in the Emblems and Names act, the Corporate Affairs Ministry also has a list that forbids some terms while registering name of a private limited company or partnership. “Republic” is explicitly mentioned in that list.

However, the term “Republic” is not contained in the names of the private limited companies that could own this upcoming TV channel. The names of companies where Arnab is a director are ARG Outlier Media Private Limited and SARG Media Holding Private Limited, which seemingly are ‘safe’ and legitimate names.

While the company’s name is safe, what about the channel’s name? Does that violate any act or rule?

Experts believe that the Emblems and Names act will apply to the brand names or trademarks owned by a company too, and Arnab Goswami could be in trouble if Swamy decides to take it to a logical conclusion.

“Section 4 of the Emblems and Names act clearly says that no competent authority shall register a trademark which bears any emblem or name (included in the act). The channel name Republic must have been applied for a trademark, and that can be rejected under this act,” Ajita Patki, a Pune based lawyer specialising in Intellectual Property Rights said.

Therefore, Arnab might face a situation where he fails to secure a trademark for his new channel, which means that he may not be able to stop anyone else from pretending as Republic TV channel. Furthermore, he can invite penalties for using the term for his commercial venture.

“As per the Emblems and Names act, a penalty of just 500 rupees is mentioned, but the act also says that ‘the competent authority may refer the question to the Central Government, and the decision of the Central Government thereon shall be final’. Perhaps that’s why Swamy has written to the central government, though the Registrar of trademarks should have taken that step after receiving such objections,” Ms. Patki said.

But some believe that Arnab could be safe and he can cite the example of NDTV, which stands for New Delhi Television limited.

“If we go by strict interpretation and implementation of the act, even NDTV could appear to violate the item number 7 of the Emblems and Names act. The term ‘New Delhi’ in NDTV’s name could be argued to be suggesting a connection to the state or local authority of New Delhi,” Company Secretary and OpIndia columnist Ashutosh Muglikar argued.

So let’s see if Swamy is going to spoil Arnab’s party or Arnab will be able to save himself from this possible trouble.

PM Modi speaks to President Trump, this is how people on Twitter reacted

PM Modi and newly elected President of USA Donald Trump spoke on the phone last night at about 11:30 PM. Modi became the 5th world leader Trump spoke to, after Canadian PM, Mexican Premier, Israeli PM and the Egyptian President. Many speculated as to what transpired between the two leaders, with chief issues speculated as being Pakistan, terrorism, H1B Visas among others.

PM Modi later updated about this telephonic conversation where the two leaders agreed upon to strengthen their bilateral ties. President Trump was also invited by the PM to visit India.

Though Trump hasn’t yet tweeted about it, the White House put out a press release regarding the phone call wherein Trump stressed that The US considers India a true friend and partner. Two leaders also had a discussion about strengthening their economic and defense partnerships and discussed the security situation in South and Central Asia. They also resolved to become allies in the global fight against terror and Trump extended an invitation to Modi to visit the US.


But such diplomatic talk is not for the Twitterati, who can see humour in everything. So as usual there were many reactions to this phone call between the two world leaders. Here are a few:

Parody account of Delhi CM asked the most important question:


So is this the reason the ‘orange president’ called Modi up before most world leaders?


Everyone including the PM has this problem


So is this why they talked so late into the night?


Though the way Trump is taking on his media, maybe it should be the other way round


Maybe Trump has grand expansion plans:


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Activist demands FIR against Shahrukh Khan for his promotional train ride

Actors are always searching for new ways to promote their upcoming movies that would enable them to spread that extra word and earn that extra buck. Shah Rukh Khan (SRK), in an effort to promote his upcoming film Raees, which was initially reported to be based on the life of underworld don Abdul Latif, decided to go on a train ride from Mumbai to Delhi in August Kranti Rajdhani.

This ride helped him connect with people at various railway stations where the train stopped, and these stations saw huge crowds of SRK fans coming on to platforms to catch a glimpse of their superstar. What was presented as a nostalgic decision by someone trying to retrace his roots by travelling back to his hometown (SRK grew up in Delhi) turned out to be a harrowing experience for many.

Situation went out of control at Vadodara and Kota where police had to resort to lathi-charge in order to control the large crowd present at both the stations. Not only it caused inconvenience to commuters, Vadodara railway station witnessed an unfortunate incident where a man died due to heart attack after getting trapped in the mad rush of SRK fans.

Initially being dubbed as a fan himself, details are now emerging that the deceased named Fareed Khan Pathan was a local politician who was there with his family in order to meet a journalist travelling in the same train. The relatives of the deceased too have denied that he was there to see SRK. Railway Minister Suresh Prabhu has now ordered an inquiry to probe the whole incident.

But this death is not the only controversy related to SRK’s promotional ride. People are now questioning whether Shah Rukh Khan and his team had taken permission from the railways, and whether this permission was granted. The official twitter handle of Rail Ministry tweeted about SRK’s journey, but it was not clear whether the ministry or officials were aware or part of this promotion.


If the Railways indeed provided permission for the promotion at their already crowded platforms, did they not anticipate the difficulties and chaos it would create? Since this promotional event can be argued to be a commercial endeavour, did the Railways charge fee for offering its premises for promotion? It should be noted that earlier this month, Railways had announced availability of its establishment for non-travel activities like hosting weddings for a fee.

Many people on social media raised such questions. And going a step further, activist Abha Singh wrote to Rail Minister and demanded action against SRK and officials:



Ms. Singh claims that the promotion was illegal and SRK’s PR team was responsible for the large crowds at the stations. She also claimed that Shah Rukh Khan violated section 145, 175, 17-9 of the railways acts, which are triggered if someone’s action causes inconvenience to other passengers. She has asked for an FIR to be registered over this. She has further asked for an inquiry against the railway officials who were on board regarding the promotion.

Whatever the outcome of this be, the move surely received a lot of media coverage and if controversy is another mean to promote the movie, that was bonus.

This Uttar Pradesh election is BJP’s to lose

Despite the SP-Congress alliance about which the whole media is going gaga over, BJP still has the edge over others in the upcoming assembly elections. Contrary to what the media is projecting on the vote-share math based on 2012 elections, the vote-share to really look at is 2014 Lok Sabha elections, which gave a sweeping victory to BJP that resulted in BJP alone getting 71 out of 80 seats (that translate to more than 300 assembly seats) and 2 of Apna Dal, its partner in NDA.

According to a survey, BJP had received more than 75% of the Brahmin and upper caste votes, and more than 50% of OBC votes, plus a 20% of Jatavs and Dalit vote means, there was a high consolidation of Hindu votes across the board. They even managed to get 10% of Muslim votes in 2014, which anyway was a bonus. This resulted in a staggering 42% of the total vote-share, leaving SP and BSP at almost half of this. Congress was practically decimated.

This was almost the same case in Bihar, which is why Nitish and Lalu allied together which upset the vote-share math in 2015 Assembly elections. If you analyse the Bihar elections, there is no way BJP would have been able to conquer the total vote-share of JD(U), RJD and Congress put together of what they achieved in 2014 Lok Sabha elections. Which is why, after trying to prop Priyanka Gandhi as the “Brahmin” face of Congress and ending up with Sheila Dixit, the wily Prashant Kishor tried the Bihar Mahagatbandhan model in UP too, perhaps prodded by Lalu and Nitish themselves to make SP come to the table this time.

But it is clear, the SP-Congress alliance in itself is a partial admission of SP’s own failure to win the elections on its own, and total admission of Congress having no chance at all if it plays the game by itself. So all that they are trying to do is to keep Muslim votes together instead of getting split, but what is being missed is, BSP too enjoy substantial share of Muslim votes, and BJP too had a 10% share of Muslim votes, and Muslims in general are realising they are being used only as vote-bank by such secular parties.

Therefore, unless the Mahagatbandhan is between BSP and SP (with or without Congress), the numbers really don’t add up to make a big upset for BJP yet. Assuming BJP retains most of the upper caste votes that it got in 2014 and manages to retain half of the OBC and Jatav votes, it would still be good at above 30% of the vote share which is enough for it to cross the line in a three cornered fight.

Granted, the drivers for state assembly elections are not the same as for Parliamentary elections and it is two years down the lane since Modi wave was at its peak in 2014, and also the assembly bye-election results post 2014 were in SP’s favour. Besides, Akhilesh Yadav has somehow managed to first pull a victim card in the family drama and then emerging as a fighting hero and looking good as the one to take over SP totally from Mulayam’s grip which could possibly give him an edge to fight the anti-incumbency.

But if he was so confident that way, he needn’t have agreed to make this alliance with Congress in the first place. It is not as if, he was making an alliance like in Bihar where principal opposition parties ganged up against Modi. Mayawati is no push-over but a strong contender herself as she had trounced SP in 2007. Though BSP didn’t get a single seat in 2014 general elections, their vote share is not small. They had polled as much votes as Mamata’s TMC or Jayalalitha’s AIADMK did in Bengal and Tamilnadu that got them 34 and 37 seats each respectively. And she fielded the maximum Muslim candidates in the election, more than SP or Congress, and is sure to take some Muslim votes this time as well. Therefore without BSP in the alliance, it isn’t as good as the Mahagatbandhan in Bihar.

Having said that, what could definitely go against BJP are the following.

They are still banking on Modi to win elections instead of a strong local leader who could be their CM face. This was their undoing in Bihar too. In UP, the problem is of plenty and the high conflict of priorities and interests among its popular leaders between Hindutva, Ram temple, Development and such. Also the infighting cannot be ruled out due to this and many are waiting and wanting to see Modi fail in UP too to build their own aspirations.

It is also not clear what are the true repercussions of demonetisation in rural Uttar Pradesh and how much the people have welcomed this there, or how cut up the people there are due to the pains caused due to it. Besides, others like AAP have pledged to campaign against BJP though they are not directly contesting the elections, and not to forget the mainstream media that appears to be backing Akhilesh Yadav 2.0

Hence Amit Shah and Om Mathur have their task cut out to ensure what was achieved in 2014 is not allowed to slip away, as on paper it is still a BJP’s election to lose.