Thursday, November 14, 2024
Home Blog Page 6848

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

0

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:


//platform.twitter.com/widgets.js

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.

Pakistan’s ISI taking ‘revenge’ for demonetisation that hit fake currency business?

0

Aftere Bihar Police claimed that the recent train accidents, including the derailment of Indore-Patna express near Kanpur which left over 150 dead, was possibly orchestrated by the Pakistan’s intelligence agency ISI, more details are now emerging over how the ISI network in India could be involved in this sabotage.

Investigations are now pointing to an elaborate sabotage operation, the main brain behind which is a man called Shafi Shaikh. As informed to the Government of India by RAW, Karachi based Shafi Shaikh is a known ISI agent and is a main cog in Pakistan’s Fake Indian Currency Note (FICN) operations.

The Operation:

Shafi Shaikh is believed to have been in contact with a certain Nepali national named Shamshul Hoda, who in turn contacted Nepali criminal Brij Kishore Giri for targeting Indian railways. Brij Kishore oversaw the execution of the sabotage by hiring locals in India, who reportedly then proceeded to plant IEDs on tracks.

Two of his associates, Arun Ram and Deepak Ram were hired by Giri to plant IED near Ghosharan in Bihar, which when detected by the security authorities made Giri livid. As a punishment, he decided to murder them. Police in Nepal found a video recording of this murder, which Giri had made reportedly to send as a proof to Hoda.

For his next operation, Giri hired Moti Paswan, who was the first one to confess to the Bihar Police about the whole sabotage operation.

It is further reported that Giri (who has been arrested by Nepal police but is currently hospitalized after trying to escape from the cops) and Hoda were in regular correspondence over the phone. Hoda is currently believed to be in Dubai.

The Motive?

Though not confirmed by agencies, these sabotages might have been Shafi Shaikh’s way of extracting ‘revenge’ against India. As the kingpin of fake currency operations in India, he was presiding over a ‘business’ that yielded at least 500 crore rupees in profits for the Pakistanis.

However, this business has been provided a crippling blow due to demonetisation leading to a complete stop in FICN smuggling, according to MoS Home, Kiren Rijiju. Such a loss in revenue could have prompted Shaikh and his peers in the ISI to think up the whole train sabotage operation in order to get even.

The arrests and investigations by the police hint at this possibility as the frequency of such incidents has increased (there have been five train derailments since November 20 last year) after the effects of demonetisation became clear.

Goa Assembly Elections: The Final Analysis

0

Around 3 months ago, we had published a two part (here and here) curtain raiser on the mood of Goa, as it goes into assembly elections along with heavyweight states like Uttar Pradesh and Punjab. We had looked at the BJP, Congress, AAP and other regional players to ascertain who had an upper hand. At that point in time, many things were in a state of flux, and as the we go into the final lap, most of those uncertainties have firmed up, and a clearer picture has emerged.

Talking about the BJP as a party, compared to 2012 (last assembly elections) it is certainly depleted. Defence Minister Manohar Parrikar had officially led the party in 2012. Now, leaders have begun alluding to his return, because the Goa BJP has failed to throw up any face which can step into Parrikar’s humongous shoes.

In 2012, the RSS cadre was firmly behind BJP, but now, a faction has split from the BJP, and is contesting under the banner of Goa Suraksha Manch (GSM). In 2012, BJP had allied with MGP, a regional far-right party, ensuring Hindu votes do not get split. Now, the party has parted ways from the BJP and has instead allied with the aforementioned GSM. In 2012, the Church had decreed that the faithful should vote out the “corrupt”, alluding to Congress, thus giving a fillip to BJP. Now, the Church has pretty clearly sounded the bugle against the BJP.

But all is not going south for BJP. It has roped in a few Congress MLAs and candidates based on the “winnability” factor rather than ideological reasons. The GSM may not have the strength to really damage the BJP since their single point focus is on the Medium of Instruction (MOI), which doesn’t seem to be a major issue among the public. While in 2012 there was a strong anti-Congress anti-incumbency wave across all sections of the society, the 2017 elections seem largely devoid of any discernible wave. Among the minorities, there surely maybe an anti-BJP wave, especially when you consider that some of them had supported the BJP in 2012, but among the Hindus there is no clear wave, neither for, nor against the BJP.

The BJP government in the state can be credited with significant infrastructure works undertaken in the last 5 years, along with a slew of social welfare schemes targeting all needy sections of the society. The tricky issues that the BJP Government hasn’t addressed well are: the removal of Casinos from the Mandovi river, the MOI issue (among a core vote bank), failing to completely weed out corruption (although there have been no major scams), failing to take to task the Mining scam accused (primarily from the Congress).

The BJP’s main opposition Congress too has had a similar fate over the last few years. Today, many smaller regional parties and leaders who claim to be an alternative to BJP and the Congress, are actually one time members of the Congress. The state Congress has essentially disintegrated into regional parties like GFP, UGP, GSRP, GVP and some Congress loyalists have even jumped ship to NCP. As stated above, some have even defected to the BJP. It was widely expected that if not all of the above, Congress and most of the above “secular forces” would cobble up a “Mahagathbandhan” to take on the BJP. But the treachery of Congress has ensured that in at least 37 out of the 40 seats, the various versions of Congress would be battling each other, besides the BJP, MGP-GSM combine and AAP.

The Congress still hasn’t been able to shake off its image of being a party that aides and abets corruption. The recent fiasco of “seat sharing” between Congress and GFP, which ended up in Congress almost cheating GFP, hasn’t done any favours to its image. Congress also has multiple old-timers who have been CMs in the past, raising doubts as to their capability to provide a stable Government. The Congress is still remembered for giving Goa ten Chief Ministers over a period of 12 years in the 1990s. The regional parties have holds over certain pockets but are in no position to offer any pan Goa alternative. In short, no one expects the Congress to cross the magic figure of 21 on its own, and even with its estranged children, reaching there maybe a stretch.

The MGP is led by 2 brothers, making it essentially a fiefdom of their family, with one of the brother harbouring hopes of becoming the chief minister, in spite of having just 3 MLAs as of now. MGP had been a coalition partner with the Congress from 2007 to 2012, and then a coalition partner with the BJP from 2012 to 2017, thus enjoying 10 continuous years in power. Hence, their last minute unconvincing split from the BJP has ended up portraying them in  negative light. The RSS faction of GSM, claims to be ideologically opposed to the BJP due to the MOI issue, but the real reason may actually be a bitter ego clash. Together, the two will certainly eat into BJP’s 2012 vote share, but their influence again is not pan Goa.

The AAP is the last player in this multi-cornered fight. AAP can claim to have run the longest and probably the most systematic campaign in the state. But the fact is they may have peaked too soon, and in spite of all the banners splashed around, they don’t seem to have converted their campaign into votes or supporters. The AAP can be held guilty of choosing some rather weak candidates, and also not being able to convince voters that they are a real alternative, as opposed to a vote-cutter party. AAP is mainly looking to cash in on the anti-BJP sentiment among minorities but if they do not pull away a critical mass, then they may end up helping BJP in some seats.

To sum up: the BJP is not in great shape, having lost some of its votes from the far-right as well as the “secular” brigade. The lost far-right votes to MGP-GSM combine may not translate into too many electoral debacles since they aren’t a pan Goa force. The Congress is also weak, hence not in a position to absorb fully the “secular” votes moving away from the BJP. These votes would probably be shared by Congress, its numerous estranged children and AAP. In some places, this split may ensure the BJP doesn’t lose, and may even help BJP win some extra seats.

This arithmetic of course goes for a toss if there is “tactical voting”, where in the anti-BJP voters decide to unite behind the force which is most likely to defeat BJP in every constituency. This would largely depend on how the Church plays its card. Till now, although it has fired shots at the BJP, it has stopped short of hinting at which alternative the faithful should consider. This sort of guidance though is restricted to the last few days before the elections, and is usually delivered at sermons, and not publicly.

In the event that the anti-BJP votes split (as they stand today), BJP will be within sniffing distance of 21 (its current tally, which is also the magic figure), or even cross it if some of the results go their way. Most opinion polls of late seem to have factored this arithmetic, and hence have given BJP a seemingly clear edge, paving the way for it to come back to power.

Even if the anti-BJP votes gravitate to the force most capable of defeating BJP in each constituency, no party seems to be in a position to come near 21 seats and it would be tough fight between the Congress and BJP to be the single largest party.

After aligning with SP, Congress leaders should delete these tweets

Congress and Samajwadi Party (SP) have finally agreed upon a pre-poll alliance for the upcoming assembly polls in Uttar Pradesh. But one should remember that they weren’t the best of the friends until very recently, and Congress being in opposition in the state, had attacked SP on numerous issues and occasions.

So in an effort to help out the Congress leaders, we present these tweets of theirs attacking the SP, so that they in their free time, would be able to delete them and spare both the parties an embarrassing situation. We guess Congress leaders should have a lot of free time, as thanks to the alliance they have to worry about just 105 out of 403 seats in UP now.

Raj Babbar, who is the president of the Uttar Pradesh Congress committee, was convinced that SP would soon be exposed for carrying out selfish family politics under the garb of socialism. Did SP expose themselves by aligning with Congress?


Congress leader Randeep Singh Surjewala yesterday tweeted in support of the SP-Congress alliance, but not too long ago, he had these things to say:


Twitter activists turned Congress spokespersons Priyanka Chaturvedi and Sanjay Jha too were critical of the Samajwadi Party:


Even the Ex-MoS Home Affairs, who hails from Kushinagar in UP, was vocally critical of the deteriorating law and order in the state:


Youth leader and Vice President of the Party, Rahul Gandhi himself was very anguished at the state of affairs in Uttar Pradesh under Samajwadi Party:


And the official handle of Congress should also delete these tweets, else it will appear hacked again (the following tweet now appears to convey that Congress has decided to compliment cycle with gundaraj):


Akhilesh Yadav lost the trust of people but won the trust of Rahul Gandhi it seems:


And now Congress has jumped on that lone seat?


//platform.twitter.com/widgets.js

President Pranab Mukherjee complains to EC after Congress misuses his photo

The President of India Pranab Mukherjee’s office has complained to the Election Commission of India after it found that the Congress party had used his photographs in some campaign posters in Punjab, where assembly elections are due next month.

The letter, written by the secretary to the President Smt. Omita Paul to the Chief Election Commissioner Dr. Nasim Zaidi, communicated that:

“The President is above party politics and neither his photo nor anything related to him in his capacity as the President can or should be used for any political purposes. All political parties should desist from ever linking the President to any political party in any manner for political goals.”

The Controversy arose when the Ludhiana unit of the Congress put up posters welcoming the daughter of President Mukherjee:

One such poster (source: Indian Express)

As evident from the poster, Congress introduced Ms. Sharmistha Mukherjee not as a Congress leader who has been campaigning for the party in the state, but as daughter of the President of India, thus linking the President to the ongoing campaign.

Sharmistha Mukherjee had been campaigning actively and aggressively for the Congress, where she has made scathing attacks on AAP, calling the so-called Delhi development model a sham and accusing Arvind Kejriwal of fooling the people of Punjab. She has also accused the SAD-BJP government of making Punjab a drug haven.

With such politically charged atmosphere, it was obvious that the President of India did not want any direct or indirect link to any political party as it will breach the political neutrality that the office of the President is supposed to maintain. It is yet to be seen if the Election Commission penalises the Congress party for the act.

Why Congress blaming Modi government for attacking RBI’s autonomy is hypocritical

0

Recently Rahul Gandhi accused the Narendra Modi led Government of interfering with the autonomy of the Reserve Bank of India (RBI). This added chorus to the various statements made by the opposition parties on similar lines. The allegations range from pressure by the Government on RBI to accept “demonetisation advice” to “non-independent decision making” of the Board of Directors of the RBI.

Going further, Rahul Gandhi even went on to claim that it was the Congress which “strengthened” RBI as an institution and it was PM Modi who “murdered” the “soul” of the RBI.

However, facts are just the opposite.

In 2011, the then UPA government had appointed the Financial Sector Legislative Reforms Commission (FSLRC), which submitted its report (pdf link) in March 2013. The Commission recommended trimming the powers of the RBI. Instead of “regulatory autonomy”, recommendations included vesting the government with more powers over the financial sector.

On the issue of autonomy and independence of the RBI, two important suggestions of the Commission need to be analysed.

Firstly, FSLRC recommended that the public debt management should be handled by an independent body and it should be taken out of the purview of the RBI. It is important to remind Rahul Gandhi and the former Prime Minister Manmohan Singh that it was the Congress party that led the bank nationalisation; it was their socialistic policies that caused massive fiscal deficits. These policies, which continued for decades, gave us massive public debt. All the banks were forced to take these as a part of their liquidity ratios. The UPA era further saw jobless growth and high public debt. Meddling with RBI’s powers to manage this debt in such a scenario was a direct attack on the independence of the RBI.

Secondly, FSLRC recommended appointment of a Committee to dictate the monetary policy. The Constitution of the Committee would have made the RBI governor one among several others. Majority of the members in the committee were proposed to be appointed by the Government of the day. This recommendation disregarded a clear conflict of interest, as the government is the biggest borrower in the market. The Committee would be driven by short term political gains than short/long term economic interests of the nation.

Do these recommendations not “murder” the “soul” of the RBI? It should be noted that the UPA led government did not reject any of the recommendations by the commission.

Not just that, forming FSLRC itself was seen as an act of trimming RBI’s powers because the UPA government and the central bank were often at loggerheads over interest rates during 2008-2013. This is documented in detail in the book ‘Who Moved My Interest Rates’ authored by the former RBI governor D Subbarao, where he says in no unclear terms that the UPA government had overstepped into the RBI’s turf.

And now Congress party leaders are going on claiming as if the RBI was a free bird and a respected autonomous institution before the Modi government took over.

Let me make it clear that the hypocrisy of the Congress party and the doublespeak by its leaders doesn’t absolve the current Modi government of its responsibilities. After May 2014, the new government should have setup a fresh committee to advise on the role of RBI and other financial system regulators.

However, they continued to work on the 2013 recommendations. Going a step further, the Finance Ministry released the Indian Financial Code (IFC) in 2015 for public comments. It proposed the formation of a Monetary Policy Committee (MPC) with four out of seven members being appointed from the government’s side with no veto power to the RBI governor on any decision taken by the MPC. It attracted negative comments. What the current government needs to do is to come up with reforms in this sector too, as they had done by bringing changes to the SARFEASI Act, etc.

To conclude, with a little politics, this is another Jallikattu type controversy. The mess was created during the UPA regime with active involvement of Congress party leaders, but the BJP has to carry the burden and blame, for they neither communicated successfully nor acted quickly enough.