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Story of FRDI Bill

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In July 2018, Government of India decided to withdraw the proposed ‘Financial Resolution and Deposit Insurance (FRDI) Bill’ under heavy flake from opposition, investors and economists.

What is the need for FRDI Bill?

Failure of Financial systems is an ever-present threat, especially in developing economies like India. Example of such a failure can be a bank failure, in which the bank becomes insolvent or is unable to pay the money owed by it to the depositors. Since the banks handle consumer funds, any such event could lead to a disastrous situation for financial stability of the country and could result in heavy losses for the depositors.

The current solution for any such crisis is provided under various laws which are enforced by different regulators (RBI, SEBI, etc.), government (Central, state) and judicial courts. This causes the resolution of the crisis to stretch for long periods of time while the authorities deliberate over their role and the limit of their powers.

The division of powers is apparent when we consider that in case of a bank failure:

  • RBI can only shut down the bank or merge it with a stable bank. Its powers are limited to changing management of the bank, imposing moratorium in some cases and recommending mandatory mergers.
  • The Central Government is empowered to restructure public sector banks, and regional rural banks but not the private owned banks.
  • High Courts can liquidate non-banking financial companies.

The Insolvency and Bankruptcy Code, 2016 is a milestone in the history of financial policy of India but is limited in its ambit to only non-financial firms. Question arises what will happen in case of a failure of private sector financial firms? In every instance of such crisis there is a confusion regarding the correct process and the roles of different financial authorities. Here, the FRDI Bill was supposed to come into play.

What is FRDI Bill?

The FRDI Bill proposed to setup a Resolution Corporation (RC) for timely and orderly resolution of a failing financial firm. The Bill introduced a five-stage health classification of financial firms and the responsibility of the Resolution Corporation was to step in at appropriate time when a firm is classified in the category of material risk to viability. This intervention would come much before the ailing firm can be classified in the category of critical risk to viability when there would be no option available but to resolve or liquidate the financial firm.

The FRDI Bill included provisions to transfer the deposit insurance functions from the Deposit Insurance and Credit Guarantee Corporation (DICGC) to the RC, to protect the depositors. (How this ensures better protection of depositors we will see in the due course.)

FRDI Bill introduced a variety of resolution tools which could have been used to resolve any such crises, these include: transfer assets and liabilities of a financial firm to another, acquisition, merger, bridge service provider, bail-in clause, etc.

Such guidelines and tools are currently not available in the country to a single body devoted to the cause, nor is any institution empowered enough to investigate such cases and act independently to resolve them. Many other countries in the world however, have already established similar institutions.

“Problems” with FRDI Bill

Various newspapers, politicians, and economists have pointed flaws in the FRDI Bill. Sometimes their claims are unfounded and sometimes outrageously uninformed; however we will take a look into their claims and try to provide an explanation for their reaction to the Bill and why their doubts were misplaced.

  1. Deposits will be at risk.

It has been claimed that under the FRDI regime the deposits in financial institutions would be at risk. For example: they would not be protected in case of a bank failure. This is only half truth.

The truth is that at present under the DICGC Act, only the deposits up to ₹1 lakh are insured. The rest of the amount deposited is already facing the risk. In the FRDI regime, the RC would have been empowered to increase this limit after consultation with the RBI. It certainly could not decrease the limit and since the limit was decided in 1990s, considering the inflation we can guess that the new limit could lie anywhere between ₹5 lakh to ₹10 lakh.

Let’s understand this with an example: Suppose the RC increases the deposit insurance limit to ₹5 lakh (realistic assumption) and you have a ₹10 lakh deposit in the bank. Then, in case of bank collapse, ₹5 lakh of your deposit would be protected and the rest ₹5 lakh would be converted into a long term deposit. In the current situation only ₹1 lakh of your deposit would be protected and the rest ₹9 lakh is forfeited.

  1. RC can use the depositors’ funds to ‘Bail-in’ to resolve an ailing firm.

This statement is correct in essence but is twisted in media reporting. This fact has been reported as if the government can cancel the liabilities owed by the bank to the depositors to bring it out of a crisis. In this projected event the depositors will lose all their money. However, the FRDI Bill contained certain provisions that safeguard the depositors’ interests.

The safeguards built in FRDI Bill were:

  1. In case of a bail-in, the insured deposits of banks cannot be used – Section 52(7).
  2. The RC was empowered to design an appropriate bail-in instrument. This would be subject to Government scrutiny and Parliamentary oversight which will ensure that the interests of the public are not sacrificed for the resolution of the firm.
  3. Prior consent of the depositor would have been required for cancellation of the liabilities beyond insured amount – Section 55(2).

This means that in our above example in the case of bank failure if ₹5 lakh of your money was already insured, and the rest ₹5 lakh will only be waived off as the bank’s liability if you give your consent. Previously, under the Banking Regulation Act, 1949, in case of the forced mergers of banks, the rights of depositors of a merging bank can be reduced and have been reduced, without the consent of depositors.

  1. Bail-in power can be used in a judicious and reasonable manner only by the RC. And in this case, the burden to ensure that all creditors, including uninsured depositors, get at least such value, which they would have received in the event of liquidation of a bank, falls upon the RC. If the depositors feel that RC has exercised its bail-in power injudiciously and unreasonably, for example, if the depositors of a bank get less value than in liquidation, than such they will have the right to get compensation from the RC on an order of the National Company Law Tribunal.
  1. Bail-in would save government’s funds at the cost of depositors’ money.

The bail-in is opposite of bail-out in which the government uses its own funds i.e. taxpayer’s money, this much is correct. However, under the FRDI regime, the claims of uninsured depositors would be given priority over the claims of unsecured creditors and government dues. Thus, this claim was also unfounded.

Why the Bill was dropped?

Even though we have established that most/all claims about the Bill being against the interests of the interests were unfounded, still it was dropped by the government. Various people negatively criticised the FRDI Bill, mostly made up of opposition parties, depositors and economists.

Depositor’s opposition to the Bill can be explained as them being not knowledgeable about the legal and financial terms, language of the Bill being too complicated, or they just might be influenced by the incorrect interpretation of the Bill in the social media. Some eminent economists have also published their views against the Bill. By their arguments, it is evident that they are uninformed about Section 52(7) and Section 55(2) of the FRDI Bill. Now, this might be acceptable for depositors who are not in this trade but for an economist complete understanding of such provisions is required to provide constructive criticism rather than uninformed jargon.

Correctly informed of not, the opposition was heavy and this forced the Government to drop the Bill.

What could have been done?

  1. The Bill could have included a minimum limit for insured deposit that is greater than the current ₹1 lakh.
  2. The provisions relating to Section 55(2), Section 52(7) (explained above) and the Bail-in clause could also have been popularised and made available to public (and “economists”) in an easier language.

Conclusion

The way forward in financial stability is paved with steps like GST, IBC and FRDI Bill. It is only by taking informed decision (which sometimes may be anti-populist) that a government achieves good governance. However, the risk is always there that good governance will cause the government to not come back in power after 5 years.

Just like with demonetisation and GST, it is also possible with FRDI Bill, that it comes back in another regime and the current government will be the one criticising it then. In any case, at present the FRDI Bill is out of picture.

 

 

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RAHUL BECOMES POLITICALLY IMPUDENT AFTER THE FALL OF RUPEE AT ITS ALL TIME LOW

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The entire non BJP opposition, especially the most vociferous Congress president Rahul Gandhi has become more impudent politically after getting the new ammunition of the all time high fall of Indian rupee against the dollar in the international market thus negatively affecting the Indian economy and enhancing inflation of the already inflated prices of the essential commodities, as a result of the diverse impact on the international crude prices.

Everybody know that the weakening of the rupee against the dollar in the international market directly results in the abnormal rise in price of the Indian petro products as the price of the Crude Oil Basket in increased manifold.

This straightaway result’s in the inflation and fiscal deficit in the Indian economy. A weak rupee makes the job of the Reserve Bank of India quite tough in arresting inflation, the reason being that the imports become highly expensive resulting in the increase in the interest rates which the RBI has already hiked twice.

As per the versions of economists if the rupee falls further, it may have the highly disturbing affect on the Indian economy, the current account deficit and the credit taken from abroad. Under such trivial circumstances the Reserve Bank has no option but to increase the already increased interest rates, finally putting the burden on everybody.

The devaluation of the Indian rupee has been creating hell of the problems to the Indian economy since the last eighteen years as there had been number of fluctuations in rupee value going downwards thus affecting the international crude price and leading to inflation.

But today’s all time rupee devaulation has undoubtedly impacted the Indian economy extremely negatively resulting in not only enhancement in the already increased prices of petro products but also raising the costs in housing and transport sector as well as enhancing the prices of assential commodities.

However, the RBI and the economic Affairs ministry are still hopeful of tiding or coping with the crisis saying that they have enough of foreign exchange reserves to the tune of more than 400 billion dollars but experts say that it’s not the final or credible solution to the ongoing crisis, particularly when people are already witnessing the hiked petroleum prices and inflation affecting the common masses.

Despite all this, what is most surprising is the fact that not a single leader of the BJP led opposition, not even the national chief Amit Shah and the most vociferous Congress opponents like BJP the spokesperson Sambit Patra has issued any statement or rebuttal of Congress chief Rahul Gandhi’s tweet and loading of PM Modi’s 2014’s most vociferous election speech related video in which the latter was badly castigating the then Congress government led by Dr. Manmohan Singh in the context of falling of the rupee in international market.

While there was no rebuttal from the BJP on Rahul’s tweet which termed the fall of rupee as a NO CONFIDENCE for the prime minister the Congress kept on its attack on the Congress by saying that the falling rupee and the failing economy is an independent gift of PM Modi to the nation which unambiguously exhibits the abject failures and economic mismanagement of the Modinomics.

The Congress spokesman Randeep Singh Surjevala has attacked the NDA government by saying that Modinomics has wrecked havoc with India’s economy and wrecked it in dire straits.

It may be recalled that the Congress party and its chief Rahul Gandhi has enhanced his tour programmes of the states like Rajasthan , Madhya Pradesh and Chattisgarh where state elections are in the offing and after the recent prediction of the opinion poll survey of ABP news channel and C – Poll giving clear winning edge, the political impudence of Nehru Gandhi scion has also increased manifold.

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RAHUL POSTS PM’S OLD VEDIO ON TWITTER, TO COUNTER HIM, WHEN THE RUPEE HAS COME DOWN TO ALL TIME LOW

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The Congress president Rahul Gandhi while expressing his serious concern and equally ridiculing the prime minister Narendra Modi on the poor condition of the value of Indian rupee to US dollar having come to its all time low at Rs 70 , had posted his (PM’s) video on his twitter handle on 14th August, when the latter was the chief minister of Gujarat casting serious aspersions on the then prime minister Dr. Manmohan Singh during the UPA regime when the Rupee fell down against the dollar.

Rahul Gandhi has in his tweet addressing Narendra Modi as the Supreme leader written: The Indian # Rupee just gave the Supreme leader, a vote of NO confidence, crashing to a historic low. Listen to the Supreme Leader’s master voice on economics in this video, where he explains why the Rupee is tanking.

However there is no response or rebuttal on this tweet till now by any senior BJP leader or functionery.

Only the Economic Secretary of the government of India has issued a statement saying that nothing to worry about the falling of the rupee as its due to the external international factors.

The vedio posted by Rahul Gandhi is of Narendra Modi when he was extensively campaigning during the national elections in 2014 castigating the then UPA 2 government and its prime minister Dr. Manmohan Singh about the falling Rupee in the international market to the US dollar. Modi had then slammed Manmohan Singh for downslide of the Rupee due to acute corruption in the UPAgovernment.

In the video Modi had said in Hindi: Jis prakar se dollar majboot hota ja raha hai, rupaya kamzor hota ja raha hai, vishwa vyapar mein Bharat tik nahin payega. Hamare vyapari maal bahar bhejte hain, maal bahar se laate hain, wo iss bojh ko sah nahin payenge. Even Bharat sarkar jo cheezein laati hai, bhejti hai usko sahna mushkil ho jayega (The way dollar is getting stronger, rupee is getting weaker, it will become difficult for India stay in global business. Our traders export some articles, they import some other articles.

They cannot bear this burden. It will become difficult for even the Indian government to import and export articles),” said Narendra Modi.

But now , after the Indian Rupee has gone down to its all time low against dollar, the BJP leadership which had been talking so much about the economic growth reaching to 8% has no answer to the Congress president Rahul Gandhi’s tweet say the Congress man.

Rahul Gandhi had been speaking loud and clear about the Rafale deal, bank frauds, crony capitalism, inflation, unemployment and farmers’ suicides in his various public meetings in Rajasthan, Madhya Pradesh and even in Parliament during the no confidence motion.

Now the issue of Rupee coming down to otsall time low against dollar in the global market has given one more significant point to the opposition to target the ruling BJP led NDA more stringently and strongly.

His first time pronouncement of PM Narendra Modi as the Supreme leader, as Kim is called in North Korea is something that sounds unique and different. In his past speeches he had branded Modi as arrogant and autocratic as well.

The tweet with the PM’s video elicited about 20 thousand likes, 8,494 retweets and 2,500 comments.

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Business

FINANCIAL FRAUDSTERS WHO DUPE PEOPLES’ MONEY NEED TO BE DEALT WITH SEVERLY IN INDIA

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As the science and technology is advancing so are the frauds, particularly the economic frauds galloping with high speed duping hundreds of thousands of innocent people in the vast country like India which is the second largest country in the world in terms of population with more than 60% people still living in rural India and not so literate.

Therefore the fraudsters find more scope to commit their illegal acts duping investers in the names of doubling their money in a short span of time enticing them in the name of reputation or big brands and finally eloping with huge amounts.

In India such economic frauds have become the order of the day with fraudsters and tricksters fleeing out of the states or country and seeking foreign citizenship or tranmitting/ transacting the entire money collected illegally from investors or their so called valued customers in foreign banks finally physically eloping abroad with families thus leaving hundreds of thousands of investors who’d invested their hard earned money in lurch and utter shock.

There have allegedly been hundreds of suicides by the people who’d lost their lacs of Rupees, even crores or say the entire savings of the life by being tricked, defaulted or betrayed by such fraudsters. I remember a company called City Lumisoune which duped thousands of investers of several thousand crores, myself being one of the victims with bounced checks still in my possession n no hope of getting back the invested hard earned money.

There are builders, big finance companies, chit fund dealers and those who promise to double the income in a year or two years time thus manipulatingly enticing investers out of the greed of getting the money doubled.

But the most worrisome part the whole story is, the successive governments at the centre or states have not shown any evidence of being serious in penalising these fraudsters who are till date active in various parts of the country.

As far as I personally know not a single investor duped by these fraud outlets or companies or in negligible numbers have received back his or her hard earned money invested in these fraud companies.

Slowly n gradually the duped invester is compelled to forget the fraud due to various other problems cropping up in their lives and hence these financial criminals get off conveniently from the shackles of law, to again go for such financial misadventures.

India, unfortunately has allegedly become a safe haven for these fraud companies or individual fraudsters who influence the system, police, financial regulators by allegedly in league with them and finally getting off.

If one seriously goes to check the record of such financial fraudsters and if the government agencies really, earnestly release their records in the open for the general public viewing, I am sure not only will we find several unresolved cases but would also be shocked to find the duped amount by these dubios financial companies or private players in fraud businesses going in hundreds of thousands of crores.

The few instances of Ponji Scheme fraud of 500 crores, City Lumisuone fraud, Mumbai, fraud in the name of tree plantatiin, Sahara, Kingfisher, Neerav Modi and Mehul Chouksi and Lalit Modi etc etc are in front of us( that have been highlighted by the media) and the government of the day is not able to do anything credible to bring them back to India and retrieve the government’s money which ultimately is the miney of publiq exchequer, that amounts to more than 15000 crores.

Just imagine that if the system could not recover its own money from these financial fraudsters, how would the general public duped by these fraudsters ever receive their individual money. Sounds shocking.

These days a new fraud is being committed right under the nose of the banking system. There are hundreds of fraud call centres working in India clandestinely who are making false calls and duping people of their entire bank savings after imposting themselves as bank managers or employees and asking them their pan numbers or Adhar Card details inorder to reopen their regular bank account which these fraudsters claim has been closed.

The account holder usually gets confused, particularly the not so educated, women or senior citizens and part with the pan numbers or other adhar card or bank details finally finding their entire savings having been siphoned off by these fraudsters.

But hardly anything seems to have been done from the government’s side, as such fraud calls and threatening is on, on peoples’ mobiles disturbing their peace of mind and confusing them very often.

Just today in my presence a friend of mine got a fake or prank call from two mobile phone numbers ( secured with him) asking him his adhar details and pan card details under the pretext that his SBI account has been closed and for reopening it , the fake caller, who claimed himself as the SBI branch manager said that he needs them urgently.

When he called back and pressurised the caller to reveal his details : he said that he is calling from the main SBI headquarter Kurla, Mumbai and disconnected the call in a huff. The receiver of the call said that this is the third call he has received today.
What’s your take friends?

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Business

HANDLOOM WEAVERS ON THE VERGE OF STARVATION, PROTEST IN FRONT OF NHDC NOIDA N SEND MEMO TO SMRITI IRANI, MINISTER, TEXTILES, GOI

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The handloom weavers of Uttar Pradesh and Uttarakhand in particular are badly suffering for want of yarn for the last more than eight months as the National Handloom Development Corporation has arbitrarily stopped the supply of yarns to the handloom weavers which was the only source of income for the survival and sustainability of their poor and economically deprived underprivileged families.

Hundreds of handloom weavers, men and women from Uttar Pradesh and Uttarakhand today protested in front of the headquarter of National Handloom Development Corporation in Noida and raised vociferous slogans against the handloom authorities for blocking the supply of uarn for the last five months.

Raising slogans under scorching sun hundreds of slogan shouting demonstraters, men and women were carrying play cards in their hands mentioning slogans: Garibon ka haq maar rahi hai sarkar ( the govt is killing the rights of the poor), hame hamara haq do ( give us our rights) and down with NHDC etc.

The protest demonstration was organised by Uttarar Pradesh Bunkar Sangharsh Union. The union also presented a memorandum addressed to the union textiles minister Smriti Irani demanding immediate release of yarns to the affected weavers of the state whose families are in doldrums and in the state of jeopardy due to their respective handloom business n employment having been stopped for the last five months.

It may be recalled that the National Handloom Development Corporation, Noida have completely stopped the supply of yarns to the weavers of Uttar Pradesh and Uttarakhand for the last five months.

According to the Uttar Pradesh Bunkar Union, the Corporation has arbitrarily stopped the supply of yarns since last first of April despite the very fact that the yarns’ supply of the union government is already
existing which has been unambiguously substantiated by the textile department’s regional manager and the enforcement director( commercial).

The union is also of the view that the Handloom Department had cleared all the bills of the weavers by 31st March but this release of payment has not reached the weaving yarn mills till date. And it’s because of this lapse that the mills are not supplying the requisite quota of yarns to the weavers as a result hundreds of thousands of them have become unemployeed and on the verge of starvation.

Prominent handloom leaders who participated in this massive protest demonstration were Mahammed Farooq Ansari, from Etaava, President of the union, Zuber Ansari from Sitapur, Mohammed Anwar from Baanda, Hazi Abdul Ansari and Mohammed Llaik etc.

According to the president of Uttar Pradesh Harkargha Bunkar Association Mohammed Farouq Ansari the Hathkargha Bunkar Union has demanded immediate release of the last five months quota of the yarn and subsequent release of the balance payments to the handlooms n mills so that they are able to release the yarn at the earliest and hundreds of thousands of weavers of Uttarakhand and Uttar Pradesh are able to survive and start earning their livelihoods againwho are currently on the verge of starvation.

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Bollywood

A CHEF CART, “THE TREAT,” WHERE KAKA USED TO DINE WHILE IN DELHI REMINDS OF THE SUPER STAR RAJESH KHANNA, fully studded with his pictures

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There are millions of die hard fans of Rajesh Khanna aka Kaka in India and abroad and so am I who worked as his media advisor for over a decade or so but Vipin Oberoi is a unique die hard fan of his who and who’s entire family have been in so close proximity during Kaka’s thick and thin that after the super star of the millenium Kaka’s leaving for the eternal home Vipin acknowledges the same affection and love from Dimple, her daughters and even the super star of today Akshay Khanna, late Kaka’s son in law.

Vipin Oberoi my close trusted friend and Kaka’sdie hard fan, had tremendous obsession and admiration for Kakaji since beginning but actually came in his direct and regular contact when Kaka arrived in Delhi to contest the parliamentary election from New Delhi on Congress ticket on the then prime minister Rajiv Gandhi’s insistence.

I however had joined Kaka from day one as his media advisor and met Vipin thereafter. Vipin was then a businessmen dealing with electronics gadgets like televisions and other items but was so badly involved in Kaka’s election that he has to give away that profitable business unwillingly.

He has a lovely family, with both the daughters having settled abroad after doing their law. Vipin then had no option but to start a chef cart/ van in Cannaught at Janpath that he got with Kaka’s support and blessings. It later on was shifted behind the prestigious Jesus and Merry college in Chanakyapuri, a prestigious Diplomatic Enclave.

Fully studded with Rajesh Khanna’s pictures and his superhit songs going on round the clock makes the environment in and around the vicinity fully glamorous and pleasent.

Kaka used to very often visit this chef cart called The Treat with the intent to help Vipin increase his sale. He loved and blessed Vipin Oberoi always and used to visit the place during night time after 9 till 11 or 12, sometime with Bollywood stars as well.

Kaka’s wife and a popular actress Dimple and children Twinkle and Rinki if in Delhi also casually visit the place and bless Vipin who’d been in Kaka’s close proximity for more than three decades, taking care of his eating requirements and other things whenever the star turned MP used to be in Delhi.

Vipin travelled with Kaka in several political campaignings as well in Delhi and other parts of the country. I myself had also visited the van, the Treat number of times and met Kaka there and had dinner with him who fortunately always held me in high esteem.

The Treat prepares fantastic and delicious non veg items consumed by good number of customers and Kaka’s fan who visit the place every alternate days with family and friends from various nooks and corners of Delhi. Vipin Oberoi alongwith Kaka’s colleagues and fans in Delhi every year celebrate and remember this great legend by organising a Bhandara and prayer meeting at the venue of THE TREAT in Chanakyapuri.

The treat is the best address for individuals and family goers for dinner non vegetarian n vegetarian delicacies where Kaka used to usually dine while he was alive.

 

 

 

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50% concession in domestic fare for sr citizens above sixty, in Air India declared since last August. News to rejoice

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There is a news to rejoice for senior citizens of the country from Air India. Now onwards the Air india has launched a special concession facility on air tickets travelling by their Airlines within the country for the nenior citizens attaining the age of sixty years.

According to the top management of the Air India a senior citozen of Indian nationality, permanently residing in India having attained the age of 60 years on the date of commencement of journey would be eligible or entitled to seek 60% of flat concession.

The tickets by the senior citizens for travel within the country on any destination to n fro or one sides, will habe booked a week in advance. In order to prove his or her identity the senior citizen male or female will have to exhibit his or her any Identity with an authentic date of birth viz ID Card, passport, driving licence, senior citizens ID card issued by Air India.

The discount provided would be flat 50% on select booking classes on Economy cabin. The journey can be within any sector inside the country. The ticket would be valid for one year from the date of issue.

There is a special warning attached to this facility according to which the senior citizen should carry the authentic proof of age ID with him or her and would be required to be shown at the time of the entrance at the airport seeking the boarding pass.

0In case the passenger forgets to produce the age identity at the time of entry or at boarding gate he or she would be disallowed to travel and the ticket forfieted forthwith.

It may be recalled that in July 2017 the union finance minister Arun Jaitley had declared that Air India is running in a fiscal deficit of a whopping 52000 crores. After Mr. Ashwani Lohani joined as its Managing Director the Air lines witnessed tremendous improvement with its deficit coming down considerably.

This announcement of flat 50% concessions to the senior citizens attaining the age of sixty may amount to escalation in traffic and is indeed a great news to rejoice being lauded as a great initiative.

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Delhi

CHIDAMBARAM IN DISARRAY. WILL THE CHARGES AGAINST HIM BE FINALLY PROVED ?

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Scandals, cases of scams, disproportionate assets and corruption are not new in politics. During the era of the former prime minister Indira Gandhi the Tulmohan Ram and Naagarwala scandals including the unearthing of Rs. 3 crores from the then minister of telecommunication Sukhram during the UPA rule rocked parliament followed by good number of scams like the coal and common wealth corruption scandals and alleged disproportionate asset cases against leaders like Mulayam Singh Yadav, Mayavati and the then union steel minister Virbhadra Singh etc have led us to the conclusion that scams in politics are like CHOLI DAMAN KA SAATH with politicians of the country.

Its a worldwide phenomena as well. While political parties in the opposition trade charges of political vindictiveness against the government in power at the centre to witch hunt their political foes misusing the investigative agencies, the same ruling party when dethroned from power repeat the same charge of political vendetta against the opposition when it comes to power.

This trend is going on for the last 70 years since we achieved independence but seldom are the political defaulters usually punished except in negligible cases. How, in some of most sensitive cases the highly responsible agencies like CBI and ED had proved to incompetent can be easily gauged from the accquital of the former prime minister Rajiv Gandhi in the most hyped Bofors case which changed governments and the recent controvertial Maxis Aircel and 2G spectrum case in which the the prime accused like former telecom minister G Raja, DMK leader Karunanidhi’s daughter n MP Kanimojhi and Daya nidhi Maaran etc got scot free after so much of hullaballoo and the then opposition exlpoiting such issues to the hilt to come to power at the centre.

Such instances of the acquittals of the prime accused only leads one to the conclusion of witch hunt by the government in power. When the National Herald case against Sonia , Rahul Gandhi and veteran leader and Congress treasurer Moti Lal Vohra were instituted during the curent political dispensation followed by the alleged involvement of the former finance minister P Chidambaram the Congress party created uproar in the both houses of parliament accusing the BJP led NDA government of political witch hunt to intentionally demoralise and harrass its arch political opponents.

The registration of the CBI case against P. Chidambaran just a day befor the tabling of the no confidence motion in the Lok Sabha has been labelled by the Congress party and UPA as taking political revenge from its arch political detractors.

The CBI case has been registered against the former union finance minister P. Chidambran and his son for illegally favouring the Maxis Aircell company of Mauritius by way of granting it official permission to invest Rs 3500 crores in contravention of the rules and regulations of Foreign Invention Promotion Board as the finance minister is only entitled to give the clearence upto the limit of Rs. 600 crores.

Any over limit than 600 crores requires the due approval of the cabinet committee on economic affairs which was not sought by Chidambaran while arbitrarily crossing his discreationery limit of approval. Not only this but after the approval granted by the minister finance Chidambaram’s son who was allegedly acting as a conduit to the Aircell Maxis Company, received several lakh rupees in his bank account which the investigative agency considers as the bribe given to him at the behest of his father, the then finance minister by the said company.

According to the CBI’s version, while registering the case against P. Chidamram, the latter has deliberately and knowing committed this illegal act or irregularity to help his son in league with the officials of the Foreigh Investment Promotion Board.

The matter is currently in the court of law and as such the fate of Chidamram lies in the court’s future judgement. But one thing is for sure that the way the prime investigation agency has been under question for the acquittal of several scamsters in the past its’ usually considered that involvement of white caller politicians is seldom proved?

Let’s see whether the agency is able to prove its worth by winning this case hands down and finally proving that its not a political witch hunt but a genuine and transparent case of misuse of power and position to favour a company with arbitrary and unfair means. What’s your take friends?

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Business

FAIITA AND PCAIT’S, CHANNEL VISTAS – 2018 EVENT WAS GREATLY INSTRUMENTAL IN PROMOTING I.T. BUSINESS SYNERGY AND GROWTH

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The Progressive Channels Association of Information Technology aka PCAIT with the support of Federation of All India Associations of Information Technology, (FAIITA) organised a prestigious event titled as CHANNEL VISTAS – 2018 at Hotel Crown Plaza, Okhla, New Delhi on 5th of May, attended by IT business champions, OEMs’ doing sizeable businesses, traders, system integrators and vendors from all over the country including Delhi.

In all about 150 important members of FAIITA and PCAIT participated in this national business conclave convened with the sole aim of IT business networking amongst the state champions, sizeable IT business partners, system integrators and vendors in order to give impetus to business growth and enhance the quality and quantity of IT business all over the country.

The first session of the conclave was devoted to FAIITA which was inaugurated by the welcome speech of its president Mr. Champak Lal Gurjar from Mumbai where as the second session dedicated to PCAIT was inaugurated by the lightening of the lamp and the welcome speech of the PCAIT president Alok Gupta followed by the speech of its general secretary Saket Kapoor.

The morning session was most ably and eloquently compered by Mr. Saket Kapoor who worked as an integrator between the FAIITA and PCAIT members participating actively in the business matchmaking giving and seeking support for the IT products in order to enhance the business volumes and earn handsome profits through mutual support and exchange of services n products in the near future.

The post lunch session with discussion on the subject titled as ” ENHANCEMENT OF BUSINESS PROSPECTS AMONGST THE MEMBERS, ” started at 2.30 PM.

This live session effectively moderated jointly by Saket Kapoor and Vivek Sharma with the active participation of the FAIITA as well as the PCAIT members from Delhi, Haryana, UP, Noida, Chandigarh, Punjab, Siliguri, North East, Tamilnadu, Hydrabad, Bihar, Jallundhar, Bengal and Pondicherry was extremely fruitful and succeful as the participating members were able to positively interact and establish business tie ups including exchanging cards for the generation of IT business amongst themselves.

All the members interestingly participated in discussions and aired their views emphatically to promote their business prospects through mutual trust and linkages in the near future.

The FAIITA president Champak Lal Gurjar, PCAIT president Alok Gupta and general secretary Saket Kapoor emphasised the need for organising such Conclaves and get togethers in various states of the country in every three months so as to ensure time bound revival of their activities and business initiatives thus achieving the aim of enhacing their IT business prospects to 25% more from the current level and also to reslove their problems if any.

The speakers at the event expressed the dire need to broadbase the organisation FAIITA, natiinally, in order to make it more effective, strong and answerable by way of generating funds through various means like : organising exhibitions in collaboration with TAITRA, involving FAIITA in arbitration and dispute settlements of the IT business partners whose large sums of money get stuck due to non payments in the government departments or with other private forums, certification of all the members of various state IT organisations in FAIITA against a consolidated one time fee and publishing of sovenier to generate funds at the national level and highlighting of the activities and achievements of FAIITA and various state IT bodies as well.

A press conference was also addressed jointly by PCAIT president ALOK GUPTA, FAIITA PRESIDENT CHAMPAKLAL GURJAR and GENERAL SECRETARY SAKET KAPOOR who ably responded to the various queries of the IT media pertaining to the problems in the IT sector, challenges being confronted by them and the achievements of FAIITA and PCAIT since their coming into existence.

About 7 tables of various IT traders and companies like Protegent, Atlanta, Armstrack, Chota Internet, Green tech, Parts Baba, Modi infosil, Its Solutions and four stalls prestigious IT products like Lenovo, HP, Dell, Acer, Dlink etc were also put installed on this ocassion to showcase their products.

About 15 minutes each were allocated to Lenovo, HP, Dell, D link, and Acer as speaking slots and to give presentation of their company and its products to the audience.

Other than Champak Lal Gurjar, Alok Gupta and Saket Kapoor, those who spoke on the ocassion were PCAIT’s Vice President Sandeep Arya, treasurer PK Sharma, EC member Sewak Nautiyal and representatives and business champions from Bihar, Punjab, Tamilnadu, Pondicherry, Jallundhar , Chandigarh and Delhi. The vote of thanks were conveyed by Mr. PK Sharma, MD Comnet Vision, India. The event organised by PCAIT was a grand success, indeed.

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PCAIT’S NATIONAL BUSINESS CONCLAVE on 5 MAY, 2018

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The information technology sector is extremely significant from the point of view of the economic and industrial development of the country, generating good number of jobs n inviting foreign investment as well and thus contributing remarkably to the nation’s over all progress and prosperity. In a nutshell, the IT industry definitely plays a very significant and vital role in strengthening the country’s economy and leading to immense technological progress of the nation within and outside.

As a sequel to fulfil these important objectives, further to demonetisation, GST and the finance budget 2018 of Government of India including (with) an objective to grow the businesses of its members through best channel practices, the PROGRESSIVE CHANNELS ASSOCIATION INFORMATION TECHNOLOGY aka PCAIT with the support of the Federation of All India All India Information Technology Associations( FAIITA) is organising a prestigious event, A NATIONAL BUSINESS CONCLAVE ,” CHANNEL VISTAS,” at Hotel Crown Plaza on 5th May to be attented by 250 credible IT business owners, honchos and leaders from across the country, ranging from retailers to system integraters to regional distributors. Primarily, its the FAIITA EVENT hosted by PCAIT.

It’s an event of IT business owners and leaders to match make and synerzise at national level for outstansing business growth.

It may be recalled that the Progressive Channels Association of Information Technology (PCAIT) is an association of credible IT channel partners conducting a little over 80% of IT business in the Indian capital of Delhi.

PCAIT is to IT channel business as NASSCOM is a software business and is a founder member of Federation of All India Information Technology Associations aka FAIITA, representing business interests of over 30,000 pan India channel partners.

Feeling a dire need to cystallize the immense human and material resources of the IT industry, particularly a channel of national and global benefit , a group of 15 enthusiastic persons heading various organisations came forth in May 2004 to give birth to PCAIT which got registered in March 2005 as a society.

The Association comprises of a vast pool capable persons possesing outstanding managerial, technical and entrepreneur skills who are also highly qualified, ambitious and successful in each of his or her domain.

The president of PCAIT is Mr. Alok Gupta, MD, Unistal Systems and general Secretary is Mr. Saket Kapoor. The excecutive council of this IT body consists of 16 persons, all from the Information Technology sector.

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Gairsain proved boon for Uttarakhand lawmakers, became richer by 100% salary hike with perks

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The budget session of the current government headed by the chief minister Trivendra Singh Rawat in Gairsain’s new assembly secretariat though convened to assuage the heightened and soared tempers of the Gairsain movement activists, has really not been able to satisfy and cajole the furious movement activists who not only protested at the venue most acrimoniously but also courted arrests everyday, raising anti establishment and pro Gairsain capital slogans.

The soaring tempers of thousands of people having converged at the new Vidhan Sabha demanding Gairsain to be declared as the permanent capital, with women in large numbers fighting with the police force to let them move forward towards the assembly building unambiguously exhibited the situation of the nineties when the Uttarakhand movement was at its peak.

The myriad amount of media coverage given to the movement for Gairsain has while lessoned the coverage of the assembly’s budget session, it has also on the other hand helped in boosting the morale of the Gairsain protagonists.

Political analysts say that by giving no significance to the issue of Gairsain capital during the entire budget session the BJP government of the state has further earned the wrath, annoyance and disenchantment of the common masses at large.

The complete success of the Gaisain bandh earlier and the Pauri Garhwal bandh of today has clearly shown the peoples’ antagonism towards the incumbent government on the issue of Gairsain capital.

What is more shocking and anguishing is the fact that instead of applying balm or grease on the wounds of the Gairsain andolankaries by raising the issue of Gairsain in the assembly, the BJP government of the state had preferred to pass a bill on 100 % increase in the salary of the lawmakers and the speaker of Uttarakhand thus adding fuel to fire to the Gairsain episode.

On the one hand thousands of unemployed youths were demonstrating at the state capital Dehradun demanding jobs and facing police blows on the other hand the lawmakers were busy enhancing their salaries and perks to the tune of 120%. Sounds ironical indeed.

The state running in a fiscal deficit of 44000 crores with budget of equal amount released in Gairsain assembly, the furious and highly antagonised people of the state are questioning the arbitrary salary hike of the lawmakers saying that the government of the day seems to be more concerned and worried for the welfare of its MLAs and ministers than the people of grass roots of rural Uttarakhand, reeling under abject poverty and no credible source of income to survive. What do you say friends?
SUNIL NEGI

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