Monday 27 November 2017

18 more shell cos which together deposited Rs 10,000 cr cash post DeMo identified

18 more shell cos which together deposited Rs 10,000 cr cash post DeMo identified

The Ministry of Corporate Affairs (MCA) has prepared the second list of 18 companies which deposited unusually large sums of cash in their bank accounts soon after demonetisation. Collectively, these companies had deposited around Rs 10,000 crore between them.

In May this year, the MCA had identified 331 companies which had deposited large sums of cash. Of these, 311 were listed entities. In August, the Securities and Exchange Board of India had shifted shares of the listed companies into Graded Surveillance Mechanism, thereby severely restricting trading activity in them.

The Serious Fraud Investigation Office (SFIO) has begun a probe against 18 companies, along with the Registrar of Companies. In this list,the highest sum of cash was deposited by a Andhra Pradesh-registered company. Most of the companies are from RoC Delhi, Mumbai, and Andhra Pradesh.

Most of the 18 companies were operating under two different names. While one of them active, the other was dormant which was invariably used to route illegal money.

Dreamline Manpower Solution Private Limited, which deposited Rs 3166 crore, was in existence for just six years, before its name was struck off by the RoC recently. The company’s last annual general meeting was held in September 2014, according to RoC records. The company has a paid-up capital of Rs 1 lakh and has only two directors. Both directors are the boards of eight other companies. The RoC records do not mention the business activity of the company.

Second on the list is a NCR-based dormant company which has deposited around Rs 2450 crore. This company too has been struck off by the RoC from its records. There is no information available about the company’s directors. As per RoC records, this company acts as a broker in different kinds of trading activities.

Other companies on the list include Sterling Agro Industries Limited, which has deposited Rs 626.67 crore. It comes under Delhi Registrar of companies, and its main businesses are horticulture, growing of crops and market gardening.

Harayana-based CMI Limited (different from the Delhi-based listed company), incorporated in 1901 as per RoC records, deposited Rs 466 crore post-demonetization. This company, too, has been struck off by the RoC. CMI responded that it had “deposited a sum of Rs 28.15 lakh in cash after demonetization.” It further added that it could have been a caes of mistaken identity as there were many companies functioning under names similar to CMI.

Maverick Holdings and Investment Private Limited is Mumbai-based company and is not on the RoC list anymore. Maverick deposited Rs 430 crore after demonetization. There was no further information available on the company.

Great Eastern Energy Corporation Limited is Delhi-based. This company submitted Rs 400 crore. Three other companies were known to share the same office address as Great Eastern Energy Corporation. All four, including Great Eastern, have been struck off the list.

Delhi-based Seeds and Grains India Private Limited Company submitted Rs 308 crore to the banks after cash ban.

MG Housing, Delhi-based real estate company, is under MCA and SFIO’s lens for depositing Rs 308 crore. One of the directors of this company Dinesh Chand Gupta is a board member on SMC Finvest Limited. SMC is a part of SMC Global, a Delhi-based brokerage firm.

SEW Euro Drive India Private limited is also from Delhi and Rs 255 crore. As per ROC filing, the company manufactures a special type of machinery.

Pune’s Logix Soft-Tel Private Limited, now dormant, submitted Rs 255 crore.

Manufacturer of basic iron and steel Royaloak Steels Private Limited, an Andhra Pradesh-based company submitted Rs 240 crore.

Delhi based Atma Tube Products Limited deposited Rs 225 crore.

Mumbai’s pipes company Sujala Pipes Private Limited submitted Rs 161 crore.

Gujarat’s Katira Construction Company deposited Rs 135 crore, Telangana based Prajasakthi Printers and Publishers submitted Rs 127 crore. Rajasthan’s Raghuveer Metal Industries Limited submitted Rs 115 crore. Two Maharashtra-based company Minda Sai Limited and Genesys International Corporation limited submitted Rs 108 crore and Rs 105 crore, respectively.

In a query sent to Minda Sai, the company said that it had transferred its “registered office of the company to Delhi and got a new CIN (company identification number). The Delhi-registered company has been actively filing reports to RoC and is under active operation.” 
 
 

Saturday 25 November 2017

Bengaluru Geologist finds microfossils of prokaryotic organisms that lived 2,000 million years ago in Bundelkhand near Jhansi

A Bengaluru based geologist has discovered 2,000-million-year-old "prokaryotic" microfossils — considered to be the earliest form of life — from the Indian subcontinent in the Gwalior basin of the Bundelkhand region near Jhansi. The discovery by Naresh Ghose, formerly geology professor at Patna University, was reported at the recent annual convention of the Indian Geological Congress in Nagpur.


A fossil of cyanobacteria, a prokaryotic lifeform found in the Burgess Shale. Image: Royal Ontario Museum.

Microfossils, perhaps the most important group of all fossils, are the tiny — less than one millimetre in size — remains of bacteria, fungi, animals, and planktons. The shape and distribution of the occurrences of the micro-fossils in carbonaceous material, strongly support the debris to be that of a micro-organism, Ghose told the convention. An individual micro-fossil consists of an outer rim of recrystallised silica (quartz), while the core is composed of carbonates (calcite) with a mixture of iron-bearing material, he told this correspondent.

Ghose found these in the 2,000-million-year-old microfossils in the black carbonaceous shale from the Bundelkhand region of the Gwalior basin in Central India.

Incidentally, the appearance of primitive life in the black shale coincides with the "Great Oxygenation Event" that brought the transition of Earth's atmosphere from oxygen-poor (anoxic) to oxygen-rich status. The earth's atmosphere since then has been responsible for transformation of inanimate objects (inorganic elements and compounds) to the animate world of today with millions of diversity in the animal kingdom.

"The present study reports for the first time the presence of "organogenic" microfossils — derived from living organisms — in black shale immediately underlying the volcanic rock of the Gwalior basin," Ghose said. The identity of microfossils has subsequently been endorsed by experts from different disciplines, including Professor Jai Krishna, a leading palaeontologist from the Benaras Hindu University.

"Therefore, the microfossils (Prokaryotic-RNA cell) in the Gwalior basin may be regarded as the confirmed oldest existence of life dated about 2,000 million years ago ever to be recorded from the Indian subcontinent," Ghose said. Ghose found the microfossils while studying thin sections of sediments (called "par" formation) containing the siliceous black shale in the uppermost part coexisting with fine layers of limestone and particles of river-borne and volcanic origin.

"This important discovery was made using a simple and inexpensive device like a microscope without the aid of any sophisticated instrument," he said. The deposit of black shale is a "universal" feature underlining a lava flow and associated with the formation of organic debris on the death of marine animals. Abundance of black shale is a major source of hydrocarbons and gas hydrates. "The USA is utilising black shale as an alternative source for hydrocarbons and is a leading exporter due to its technological advancement," Ghose said.

Thursday 23 November 2017

M-power to empower our citizens: PM Narendra Modi

PM Modi at the Global Conference on Cyberspace. Probably the only PM in the world who tweets about Cyberspace and Technology at 7:30am and has in the past addressed Hackathon via video conference on a weekend at 10pm

We are using mobile power or M-power to empower our citizens: PM Narendra Modi


Digital technology has emerged as a great enabler. It has paved the way for efficient service delivery and governance: PM Modi

We are using mobile power or M-power to empower our citizens: PM Narendra Modi

Through better targeting of subsidies, the JAM trinity has prevented leakages to the tune of nearly ten billion dollars so far: PM

Citizens of India are increasingly adopting cashless transactions; BHIM App is helping the movement towards a less cash and corruption free society: PM

Technology breaks silos; PRAGATI has put back on track infrastructure projects worth billions of dollars which were stuck in red-tape: PM

Cyber-space remains a key area for innovation. Our startups today are looking to provide solutions to everyday problems and improving lives: PM

Nations must take responsibility to ensure that the digital space does not become a playground for the dark forces of terrorism and radicalization: PM
Complete speech
His Excellency Mr. Ranil Wickremesinghe, Prime Minister of Sri Lanka
Ministers from India and abroad
Secretary General of ITU,
Other distinguished dignitaries
Delegates from over 120 countries
Students,
Ladies and Gentlemen.

I welcome you to New Delhi, for the Global Conference on Cyber Space. I also welcome all those who are joining this event remotely from across the world, over the internet.

Friends.

We all know how cyberspace has transformed the world over the last few decades. The senior generation among the gathering here, would recall the bulky mainframe computer systems of the seventies and eighties. A lot has changed since then. Email and personal computers brought about a new revolution in the nineties. This was followed by the advent of social media, and the mobile phone as an important vehicle of data storage and communication. Expressions such as the Internet of Things, and Artificial Intelligence, have now become commonplace. These indicate that change continues, perhaps at an even faster pace now.

These rapid developments in the digital domain have mirrored immense change in India as well. Indian IT talent has been recognized worldwide. Indian IT companies have made a name for themselves globally.

Today, digital technology has emerged as a great enabler. It has paved the way for efficient service delivery and governance. It is improving access, in domains from education to health. And it is helping to shape the future of business and economy. Through each of these ways, it provides the less privileged sections of society, a more level playing field. On a macro-scale, it has contributed to emergence of a flat world, where a developing nation like India can compete on a level footing with developed nations.

Friends.

Technology breaks barriers. We believe it validates the Indian philosophy of "Vasudhaiva Kutumbakam" - the world is one family. This expression reflects our ancient, inclusive traditions. Through technology, we are able to give meaning to this expression, and indeed to the best of democratic values.

We in India, give primacy to the human face of technology, and are using it to improve what I call, “ease of living.” Empowerment through digital access, is an objective that the Government of India is especially committed to. "Digital India" is the world's largest, technology-led transformative programme which is paving the way for our citizens to avail digital services. We are using mobile power or M-power to empower our citizens.

I am sure most of you are already aware of Aadhaar, which is the unique biometric identity of a person. We have used this identity to liberate our people from queues and cumbersome processes. Three factors: first, financial inclusion through our Jan-Dhan bank accounts; second, the Aadhaar platform; and third, the Mobile phone, have greatly helped reduce corruption. We call this the J.A.M. or JAM trinity. Through better targeting of subsidies, the JAM trinity has prevented leakages to the tune of nearly 10 billion dollars so far.

Let me share a few examples of how digital technology is becoming a great facilitator for "ease of living."

Today, a farmer can access a variety of services, such as soil-testing results, expert advice, and a good price for his produce, at the click of a button. Digital technology is therefore contributing to increased farm incomes.

A small entrepreneur can register on the Government e-Marketplace, and bid competitively for supply of goods to the Government. As he expands his business, he also contributes to lowering the cost of procurement for Government. This leads to increased efficiency, and greater value for public money.

Pensioners no longer need to present themselves in front of a bank officer, to provide proof of life. Today, a pensioner can leverage the Aadhaar biometric platform, to provide this proof with minimal physical effort.

Women form a significant part of the IT workforce. Digital technology has facilitated several new enterprises led by women. In this way the IT sector has contributed towards gender empowerment.

Citizens of India are increasingly adopting cashless transactions. For this, we created the Bharat Interface for Money – or BHIM App. This App is helping the movement towards a less cash and corruption free society.

These examples show the power of technology in improving governance.

Friends.

We are using the digital domain to facilitate participative governance, or Jan Bhagidari. When we assumed office in May 2014, many people, particularly youngsters expressed a keen desire to share their ideas and work for the nation. It is our firm belief that there are millions of Indians, whose transformative ideas can go a long way in taking India to new heights.

Therefore, we launched the citizen engagement portal, MyGov. This platform enables citizens to share their thoughts and ideas on important issues. In many key policy areas, we received thousands of valuable suggestions. Many logo and emblem designs for various Government initiatives today, are the result of crowd-sourcing, and competitions on MyGov. In fact, even the official app for the Prime Minister's Office, is the result of a competition floated on MyGov, which received brilliant responses from youngsters. MyGov is a prime example of how technology strengthens democracy.

Let me turn to another example. On assuming office, I realized that important government projects and initiatives often suffer on account of unnecessary silos in government functioning, and the lack of focused decision-making. Therefore, we devised a cyberspace based platform, called PRAGATI or Proactive Governance for Timely Implementation. PRAGATI, in Hindi, literally means progress.

On the last Wednesday of every month, I meet top Union and State government officials for a PRAGATI Session. Technology breaks silos. Sitting in our respective offices, aided by the cyber world, we discuss and resolve important governance issues. I am happy to share with you that the PRAGATI sessions have resulted in faster decision-making, through consensus, in the larger interest of the nation. PRAGATI has put back on track infrastructure projects worth billions of dollars which were stuck in red-tape.

I have even tried something of my own, through the Narendra Modi Mobile App. This App deepens my connect with citizens. The suggestions I get through the App are very useful.

Today, we launched the UMANG Mobile App, which will provide over a hundred citizen-centric services. At the back-end, these services will be catered for by many different departments of the Union and State Governments. This integrated approach will add an automatic layer of "peer performance pressure", in the working of these departments.

Friends,

We shall be happy to share our experiences and success stories with the global community. On the other hand, India is keen to find scalable models and innovative solutions in education and health, using digital technology. We also wish to make cyberspace an enabler for the differently-abled. Recently, during a thirty six hour Hackathon, college students suggested solutions to chronic problems that were put forward by Ministries. We look forward to learn from global experiences and best practices. We believe that growth happens only when we all grow together.

Cyberspace remains a key area for innovation. Our startups today, are looking to provide solutions to common everyday problems, and improving the lives of people. I am confident that the global investor community, will recognize the immense potential waiting to be tapped from India’s startup pool. I invite you to invest in this space, and be a part of the unfolding story of Indian startups.

Friends.

The internet, by nature, is inclusive and not exclusive. It offers equity of access, and equality of opportunity. Today’s discourse is being shaped by Facebookers, Tweeples, and Instagrammers. Social media platforms are making cyberspace participative for all. News that experts tell us from studios, is now supplemented by experiences highlighted on social media. This transition, to a blend of expertise and experience, is the contribution of the cyber world. The internet has become the ideal platform for youngsters to showcase their creativity, capability and capacity - be it an insightful blog, a beautiful musical rendition, artwork, or theatre… the sky is the limit.

Friends.

The theme of the Conference: "Secure and Inclusive Cyberspace for Sustainable Development" also highlights the importance of securing this vital asset for mankind. The global community needs to approach the issue of cyber-security with confidence, as much as with resolve. Cyberspace technologies must remain an enabler for our people.

The quest for an open and accessible internet often leads to vulnerability. Stories of hacking and defacement of websites are the tip of an iceberg. They suggest that cyber attacks are a significant threat, especially in the democratic world. We need to ensure that vulnerable sections of our society do not fall prey to the evil designs of cyber criminals. Alertness towards cyber-security concerns, should become a way of life.

One of the major focus areas should be the training of well-equipped and capable professionals to counter cyber threats. Cyber-warriors who will remain on the alert against cyber-attacks. The term "hacking" may have acquired an exciting, even if dubious overtone. We need to ensure that cyber protection becomes an attractive and viable career option for the youth.

On a related note, nations must also take responsibility to ensure that the digital space does not become a playground for the dark forces of terrorism and radicalization. Information sharing and coordination among security agencies is essential to counter the ever-changing threat landscape.

Surely, we can walk the fine balance between privacy and openness on one hand, and national security on the other. Together, we can overcome the differences between global and open systems on one hand, and nation-specific legal requirements on the other.

Friends.

Emerging digital technologies could impact our future in ways that we cannot yet foresee. Important questions of transparency, privacy, trust and security may need to be addressed. Digital technology serves to empower mankind. We must ensure that it continues to stay that way.

The large multi-stakeholder participation at this event, is proof of the global endorsement that this platform has received. Nation states, the industry, academia and civil society, all need to work towards a formal collaborative framework. This will enable a secure cyberspace which improves quality of life.

Friends.

This conference is perhaps the biggest ever such event in terms of numbers. I am told that all the background and logistics have been handled digitally. I hope delegates from around the world found it a smooth and seamless experience.

I conclude by wishing you fruitful and productive deliberations and outcomes. I once again welcome you, and wish the conference all success.

Thank you.


Wednesday 22 November 2017

BrahMos world’s fastest anti-ship cruise missile successfully test-fired from Sukhoi 30-MKI




BrahMos world’s fastest anti-ship cruise missile successfully test-fired from Sukhoi 30-MKI~ First for India, and the world


In a first for India, and the world, the Indo-Russian supersonic cruise missile BrahMos was today successfully test fired from IAF’s Sukhoi 30-MKI. BrahMos is one of the heaviest missiles in the world to be integrated on a frontline fighter jet and with today’s success, the IAF gets unprecedented fire power against the enemy. 
“The missile was gravity dropped from the Su-30 from fuselage, and the two stage missile’s engine fired up and straightway propelled towards the intended target at the sea in Bay of Bengal,” said a Ministry of Defence release.

BrahMos, said to the world’s fastest anti-ship cruise missile, was integrated on the Sukhoi-30 MKI by HAL. With a range of 290-km, the 2.8 mach missile is a lethal weapon, and its integration with an aircraft like Sukhoi is without a doubt a big boost for India’s defence preparedness and strike capabilities. The success means the Air Force will now have the ability to strike hostile warships hundreds of kilometres off the coast in just minutes once ordered.

In 2016, a Sukhoi 30-MKI frontline fighter jet was test-flown with the BrahMos missile integrated on it. According to BrahMos Aerospace, the Su-30-BrahMos combination will carry out air combat operations within and beyond visibility range and will provide the IAF with the capability of attacking targets protected by powerful air defence assets. This means that BrahMos together with the Su-30 MKI would give India a formidable weapon against Pakistan.

BrahMos has already been inducted by the Indian Army and Indian Navy. It can be launched in either inclined or vertical configuration based on the type of the ship. The land-attack version of BrahMos is fitted on an mobile autonomous launcher. BrahMos is also capable of being launched from submarine from a depth of 40-50 metres. Several countries have already expressed interest in buying the BrahMos missile from India.

Incidentally, with India becoming a member of the MTCR, India and Russia decided to enhance the range of the BrahMos missile in 2016. In March this year, a 450-km land-based version of the BrahMos missile was successfully test fired. Meanwhile, the development of an almost 800-km range BrahMos missile is underway and is expected to be complete in two years time. The 800-km version will give China every reason to be wary of India’s strike capabilities.

The Indian Air Force variant test-fired today has significant differences from other versions of BrahMos. Unlike the Navy and Army version which are significantly larger in size and weigh three tonnes, the IAF version tested weighs 2.5 tonnes and has been adapted specifically for the Su-30 MKI fighter. Given the still considerable weight of the missile, the Su-30 can carry only missile one per mission.

A BrahMos armed Su-30 can fly 1,500 km in the direction of a hostile target out at sea. Using a special targeting mode in its radar, the Su-30 can lock onto an enemy warship and launch the BrahMos from long ranges, before it can be countered by surface-to-air missiles fired from the warship.



Post-launch, the Su-30 would fly away while the air-launched BrahMos uses its own seeker to home in on the target. Given its speed of Mach 2.8 (2.8 times the speed of sound), the BrahMos is extremely difficult to presently intercept by surface to air missiles deployed on leading warships around the world.


The combination of the Su-30 and BrahMos means that the Indian Air Force can deliver a knock-out punch in minutes if ordered, far quicker than a warship which may need to sail in the direction of a target out at sea.


The BrahMos missile is a joint Indo-Russian venture named after the rivers Moscow and Brahmaputra.


Monday 20 November 2017

India's Dalveer Bhandari wins second term at International Court of Justice after UK pulls out of race

India's Dalveer Bhandari wins second term at International Court of Justice after UK pulls out of race-Significant victory for PM Modi's team at the Ministry of External Affairs.

Bhandari received 183-193 votes in the United Nations General Assembly and secured all the 15 votes in the Security Council after separate and simultaneous elections were held at the UN headquarters in New York. India's victory came after Britain's Permanent Representative to the UN, Matthew Rycroft, in a statement said that the UK had decided to withdraw Sir Christopher Greenwood as a candidate for re-election as a Judge of the ICJ.

Prime Minister Narendra Modi credited the efforts of External Affairs Minister Sushma Swaraj and MEA officials for the re-election of Dalveer Bhandari to the International Court of Justice (ICJ).

He also expressed gratitude to members of the United Nations General Assembly and the U.N. Security Council for “their support and trust in India.” Following his election, Ms. Swaraj had tweeted, “Vande Matram — India wins election to the International Court of Justice. Syed Akbaruddin @AkbaruddinIndia our Permanent Representative in UN deserves a special mention,” she said on Twitter.

In the 11 rounds of the election as of Sunday, Bhandari had been receiving the support of nearly two-thirds of the members of the General Assembly but was trailing by three votes against Greenwood in the Security Council. According to reports, the voting in the General Assembly, which overwhelmingly favoured India, is reflective of the new global order, which is not pleasant to the world powers.

 

Further, according to reports, it was understood that both New Delhi and the Permanent Mission of India to the UN had been working overtime to convince the members of the Security Council on the need to go by the voice of the majority of the General Assembly. 

Ahead of India's victory, agency reports citing observers said that the permanent members of the UN Security Council were 'unnerved' by the prospect of India's nominee winning against Britain's candidate in the election to the last seat of the World Court as it would set a precedent that might challenge their power in the future. 

Before the UK withdrew from the race, the permanent members of the Security Council -- the US, Russia, France, and China -- appeared to have rallied behind Greenwood. Britain is the fifth permanent member of the Security Council. 

The prospect of India winning against a P5 member through democratic means was something that this elite club of veto-wielding countries – Britain, China, France, Russia, and the United States – was unnerved with, because this would set a precedent that they did not want to see repeated.  

"Today it is Britain, tomorrow it could be any one of us" is the argument which had brought all these five countries together, sources told PTI, adding, "If one (of the P5) is going to be knocked off today, the others fear that they might be knocked off tomorrow."  

After pulling out of the race, Britain congratulated Justice Dalveer Bhandari on being re-elected to the ICJ and said it would continue to cooperate closely with India at the UN and globally. 
"We are naturally disappointed, but it was a competitive field with six strong candidates," Rycroft said, adding, "If the UK could not win in this run-off, then we are pleased that it is a close friend like India that has done so instead. We will continue to cooperate closely with India, here in the United Nations and globally." Rycroft also said that the UK would continue to support the work of the ICJ "in line with our commitment to the importance of the rule of law in the UN system and in the international community more generally". 

According to a BBC diplomatic correspondent, the UK's withdrawal would be seen in certain quarters "as a shift in the balance of power at the UN away from the Security Council". Further, the correspondent said that the move would be seen as "a humiliating defeat for the UK". 

According to The Guardian, the fact that India could emerge as a "more significant trading partner" after the UK's exit from the European Union, or Brexit, could have contributed to the decision to withdraw. One of the consequences of India's victory, as The Guardian's headline put it, is: "No British judge on world court for first time in its 71-year history".

-----


bbc.com

How UK lost International Court of Justice place to India

James Landale

http://www.bbc.com/news/uk-politics-42063664

Image copyright AFP/Getty Image caption UN Security Council members cast their vote during a meeting on the election of five members of the International Court of Justice.

The International Court of Justice is the principal legal body of the United Nations. It is based in The Hague and its job is to settle disputes between states.

Lots of its work is highly technical and not exactly the stuff of the front pages. And let's be honest, many people would probably not have known that one of the 15 judges had always been British ever since the court was set up after the Second World War.

But the loss of a British presence around that supreme judicial bench is of huge significance - not just to the court but to the UK's standing in the world.

This is how it happened. Five of the 15 judges are elected every three years to ensure continuity. Britain's judge, Sir Christopher Greenwood, was hoping to win re-election for a second nine year term. He is a highly distinguished lawyer and former professor in international law at the LSE.

More from James:

But there was a hitch. Rather unexpectedly, Lebanon's former ambassador to the UN put his hat in the ring. So instead of there being five candidates for five places, now there were six.

And the former ambassador, having spent many years at the UN, had enough friends to win the election. He won one of the slots reserved for candidates from Asia. This meant the Indian candidate - Dalveer Bhandari - had to try his luck for a slot normally reserved for Europeans and in this case that meant challenging the UK.

In recent days, the four other candidates were elected. But while Sir Christopher won the support of the UN Security Council, the Indian judge was backed by the UN General Assembly. A successful candidate needs a majority of support in both bodies. And after repeated votes, there was deadlock.
UK has had ICJ judge since 1946

The Indian government was working hard, twisting arms, lobbying furiously, pulling in favours. The Indian newspapers were full of accusations that the British were using "dirty tricks" to try to win. Some commentators compared Britain's behaviour to its old commander in chief of British India, Robert Clive. Few anti-colonialist tropes were left unused.

In contrast, British ministers made some telephone calls. The British did consider invoking a little known provision in the UN Charter which allows for an arbitration process known as a "joint conference" to try to resolve such an impasse. Image copyright Reuters Image caption Matthew Rycroft, the UK's ambassador to the UN, said he was "pleased" that a "close friend like India" had won.

But in the end, the UK chose not to use this process, fearing either it would not get enough support in the UN Security Council, or that the competition would become too bitter and potentially disrupt the UK's economic relations with India.

Either way, it means that from early next year, when Sir Christopher stands down, the UK will not have a judge on the ICJ for the first time since 1946.

On one level, this reflects a shift in the balance of power at the UN away from the Security Council. Many members on the General Assembly resent the way the Security Council has so much power, particularly the five permanent members.

The so-called Group of 77 - which represents a coalition of mostly developing nations - has long been pushing for greater influence. The victory of India over the UK will be seen as a huge success for the G77 in pushing back against the traditional northern powers on the security council. 

Diplomatic set back?

Foreign Office sources pointed out that the UK's ousting from the ICJ is not without precedent. They pointed to France failing to get its candidate onto the International Law Commission last year and Russia's exit from the Human Rights Commission.

But it is also true to say that this represents a defeat for the UK itself. This is a failure of UK diplomacy. Downing Street refused to confirm that Theresa May herself got involved in lobbying for this job - they merely said representations have been made at the highest levels of government. But Boris Johnson and his Foreign Office ministers were certainly involved. And they failed. They failed to win enough support in the General Assembly.

Matthew Rycroft, the UK's highly rated ambassador to the UN, said the UK had folded because it did not want to take up more of the UN's valuable time, and he said he was "pleased" that a "close friend like India" had won. Perhaps more frankly, he admitted that the UK was "naturally disappointed".

However hard the government tries, this defeat at the UN will be seen as a significant diplomatic set back, a symbol of Britain's reduced status on the world stage. Britain tried to win an election - but the community of nations backed the other side, no longer fearing any retribution from the traditional powers, no longer listening to what Britain had to say.

Some will blame this on Brexit. That might be a little simplistic. Few countries are as obsessed with Brexit as the UK. It is simply not at the front of their minds. But what is clear is that many countries at the UN were willing to defy Britain and that would have been less likely a few years ago.

The government likes to talk of what it calls "global Britain", a vision of a buccaneering UK, independent of the EU, promoting its interests and values and trade around the world. The problem is that many believe that vision has not yet been backed up with any policy substance.

Instead, rightly or wrongly, many countries see the UK turning in on itself to sort out the complexity of Brexit. They see it as a retreat from the international stage - whatever the Brexiteers argue to the contrary - and these countries are filling the vacuum accordingly.

We saw a sign of this earlier in the year in June, when the UN general assembly voted against Britain to refer a dispute between the UK and Mauritius over some islands in the Indian Ocean, to the International Court of Justice.

In another age, Britain would perhaps have called in favours, flexed its P5 muscles, and taken the fight to India. But instead it withdrew, at best to take a short term hit probably to avoid a long term economic loss. At worst it simply gave up because it had no alternative and as a result, for the first time in 71 years, the UK will no longer be represented in the world's highest court.

Friday 17 November 2017

Nirmala Sitharaman slams Congress, calls allegations 'shameful' - Rafale deal




The decision to buy 36 Rafales was taken to address the urgent need of the IAF (Indian Air Force) because the UPA government did not pay any attention to defence preparedness of the armed forces. The UPA was indecisive for 10 years to address this critical necessity of fighters for the IAF.

The Prime Minister understood loss of time and took the government-to-government route for 36 aircraft. The Defence Minister said the Transfer of technology is not economically feasible with just 36 planes, but could have been done with 126 planes. Under the Defence Procurement Procedure it was "allowed to contract a friendly Government to get 36 aircraft in fly away condition at the earliest. The procedure was duly followed.

Sitharaman rubbished allegations saying today that the final agreement for 36 Rafale jets was signed after the approval of the Cabinet Committee on Security, which decides on India's defence expenditure and matters of national security.

"Allegations relating to the Rafale deal are shameful, the deal was finalised following a transparent procedure," said the defence minister. She said that between 2004 and 2014, the UPA govt could not come to a decision on Rafale acquisition.

According to a French diplomat, the contract to buy 36 aircraft had in it an unusual clause which said that Dassault and its partners would invest as much as 50% of the cost of the deal in the Indian defence industry under the so-called offsets clause. 

This share of 50% would “contribute very positively to the development of the defence industry in India,” he said; these offsets are not only being implemented by Dassault alone but by associated French companies as well. This in turn meant that many Indian companies—large and small—would be benefitting from the pact and not just one company, the diplomat said. 

According to the Congress party’s Surjewala, when it was in government in 2012, it had negotiated with the French to acquire 126 aircraft for $10.2 billion with the transfer of technology. It was decided that 18 aircraft would come in a flyaway condition while the remaining 108 would be manufactured in India by the state-run Hindustan Aeronautics Ltd.

The Narendra Modi-led NDA government that took office in 2014 cancelled that deal in 2015 and decided to buy 36 aircraft at $8.7 billion without the transfer of technology provision.

According to Surjewala, private firm Reliance Defence Ltd then tied up with Dassault Aviation for a joint venture for defence production in India on 3 October 2016, PTI reported. Reliance Defence has denied any wrongdoing in the matter, calling the allegations “baseless and unfounded,” according to PTI.

The ruling BJP rubbished the Congress allegations, claiming it was intended to “divert attention” as the opposition party’s leaders faced the prospect of being questioned over alleged irregularities related to the purchase of Augusta Westland helicopters when that party was in power.

“Modi government is known for integrity and all its actions are above board, while the Congress party is synonymous with sleaze, corruption and crony capitalism,” BJP spokesman G.V.L. Narasimha Rao told PTI.

He claimed that the Congress was raising the issue as one of the chopper scam’s middlemen, Carlos Gerosa, was arrested in Italy last month and the government has been trying to extradite him. Since the development raises the possibility of further investigation, Rao said that “the Congress has made baseless allegations over Rafale deal to divert public attention and to cry political vendetta.”

“None of these stunts will work and the Congress must be ready to answer who took bribes in the AgustaWestland VVIP chopper deal as the money trail is going to become known after the extradition of Carlos Gerosa,” he said, adding that the Modi goverment was known for its integrity.

Anil Ambani’s RDL also asserted that it had done nothing wrong and that Congress’s allegations were “baseless and unfounded”. In a statement, RDL said that its subsidiary Reliance Aerostructure and Dassault Aviation entered into a joint venture – Dassault Reliance Aerospace – through a bilateral agreement. It further said that no approvals from the Union cabinet or cabinet committee on security were needed as the government policy as of June 24, 2016 allowed for 49% foreign direct investment in the defence sector under the automatic route without any prior approval. The joint venture was formed in October 2016 according to the new policy.

Air Chief Marshal B S Dhanoa threw his weight behind the central government over the Rafale aircraft deal, saying the government had negotiated a better deal on Rafale jets than the previous one. 

Air Chief Marshal B S Dhanoa defended the central government over the Rafale aircraft deal, saying the government had negotiated a better deal on Rafale jets than the previous one. “There is no controversy. What is the controversy, I don’t understand. It is not overpriced. The government has negotiated a very good deal. We have negotiated a better deal than we did with Medium Multi-Role Combat Aircraft (MMRCA). In fact, the price of 36 aircraft is lower than in the MMRCA contract as we are getting 50 per cent off-set and service facility, and I think the government has negotiated a very good deal.” 

Asked about “transfer of technology” reportedly being halted under the new deal, he said earlier “we were purchasing one squadron and were to manufacture others here, but now we have purchased two squadrons under ‘fly-away’ condition”.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

What will India's Rafale jet be equipped with:
  • MICA air-to-air “Beyond Visual Range” (BVR) interception, combat and self-defence missiles, in their IR (heat-seeking) and EM (active radar homing) versions. The MICA can be used within visual range (WVR) and beyond visual range (BVR).
  • HAMMER (standing for Highly Agile and Maneuverable Munition Extended Range) modular, rocket-boosted air-to-ground precision-guided weapon series, fitted with INS/GPS or INS/GPS/IIR (imaging infra-red) guidance kits, or with the upcoming INS/GPS/laser guidance kit.
  • SCALP long-range stand-off missile,
  • AM39 EXOCET anti-ship missile,
  • Laser-guided bombs,
  • The 2500 rounds/min NEXTER 30M791 30 mm internal cannon, available on both single and two-seater
  • The upcoming METEOR long-range air-to-air missile.
  • “Buddy-buddy” refuelling missions can be carried out in portions of the airspace out of reach of dedicated and vulnerable tanker aircraft.
  • With its outstanding load-carrying capability and its advanced mission system, the Rafale can carry out both air-to-ground strikes, as well as air-to-air attacks and interceptions during the same sortie.
  • It is capable of performing several actions at the same time, such as firing air-to-air missiles during a very low altitude penetration phase: a clear demonstration of the true “Omnirole” capability and outstanding survivability of the Rafale.
 
dnaindia.com

Rafale jets bought at 16% lower price than UPA deal

Sanjay Bragta |


It was decided that of the 126 aircraft, 18 would come in fly-away condition and the remaining 108 will be manufactured in India, says Randeep Surjewala.

Rubbishing Congress' charges of wrongdoing in Rafale fighter jet deal, the government clarified that this is a fictitious assumption of a party which sat on the deal for almost a decade ignoring the important national security issues.

Top sources in the security establishment said that the cost of the government-to-government deal with France for 36 Rafale fighter jets was almost 16 per cent lesser than what the previous UPA government is projecting with better weapons and avionics. Prime Minister Narendra Modi, during his visit to Paris in April 2015, announced that India would be buying 36 Rafale fighters from France in an inter-government deal. After five rounds of negotiations, the deal was finally signed by the two defence ministers in Delhi in September 2016 for 36 fighter jets for Rs 58,000 crore.

Congress vice-president Rahul Gandhi terming this deal as a scam has been raising this issue and putting onus of asking questions on this to Prime Minister Narendra Modi. The Congress' communications department head Randeep Surjewala had alleged that the government neglected the interests of public sector Hindustan Aeronautics Limited (HAL) as Dassault Aviation, the manufacturer of Rafale aircraft refused to transfer technology to it and instead entered into an agreement with Reliance Defence.

He also alleged that the aircraft was being purchased at much higher rates than what was decided after the completion of the tender process under the previous UPA government. Surjewala said the UPA government floated a tender on August 20, 2007 for purchase of 126 medium multi-role combat aircraft (MMRCA) for the Air Force and, post negotiations, two of them — Rafale and Eurofighter Typhoon were shortlisted.

On December 12, 2012, Rafale was declared L1 vendor, the bidder whose quotation is the lowest, with base price of Rs 54,000 crore. "It was decided that of the 126 aircraft, 18 would come in fly away condition and the remaining 108 will be manufactured in India by HAL with transfer of technology," Surjewala said.

The government sources also said that the Indian Air Force will get the aircraft with far better long range missiles along with 75 per cent availability at all times as opposed to the present one,w hcih is only 50 per cent. There will also be a guarantee of getting spare parts for the fighter jets for 50 years. Time frame for supplying is also better. Sources added that since one squadron of Rafales as per the earlier tender had to be acquired in fly-away conditions, the govt decided that it would buy two squadrons to meet the bare minimum requirements of the force.

There are 16-18 planes in one squadron. The sources said that now with the Rafale coming in 2019, the Indian Air Force can buy more planes of global standards by doing proper due diligence. The deal made by the NDA government has also ensured that the French provide help for the programme for 10 years, the sources added.

Rahul Gandhi also asked why PM Modi bypassed experienced HAL and gave the deal to AA rated businessman with no defence experience. Reliance Defence said its subsidiary Reliance Aerostructure and Dassault Aviation formed a joint venture - Dassault Reliance Aerospace after a bilateral agreement between two private companies and "the Indian government has no role to play in this".
Reliance Defence claimed that the government policy of June 24, 2016 allows for 49 per cent FDI in the defence sector under the automatic route, without any prior approval.

"No approvals from the Union Cabinet or CCS were required for the formation of the aforesaid joint venture company under the automatic route," it said, brushing aside the Congress' charge that Prime Minister Modi promoted interests of a group.

Sources said that as of now there is a deficiency of fighter aircrafts and the gap needs to be filled. The government is not responsible for an offset contract between Reliance Aerostructure and Dassault Aviation as this is between private company and vendor.

Sources also justified the urgency to buy the fighter aircrafts as number of squadrons of IAF fighters had gone down to 33 instead of required 42. The Indian Air Force has repeatedly told the political establishment of requirement of at least 42 squadrons of fighter jets to protect its northern and western borders with China and Pakistan.

The then Defence Minister Manohar Parrikar had flagged this issue with Prime Minister Narendra Modi to urgently address the concerns of IAF commanders.

In another two years, IAF is going to lose another 14 squadrons of MiG 21s and MiG 27s. The IAF banks on British-made Jaguar and French-made Mirage 2000s, Su-30 MKI and MiG 29s. An upgrade of the Jaguar fighters being carried out by HAL has been delayed.

Thursday 16 November 2017

eLoc – to digitally map the physical property addresses in India.

eLoc-India's National Digital Address System

  • Govt to digitally map all addresses in the countryPilot project in three postal pin code areas in Delhi and Noida
  • Department of Posts to allot a six-character alphanumeric digital address for every property and create eLoc or eLocation
  • Once mapped, addresses to be linked to information like property title and ownership, property tax records, details on utilities like electricity, water and gas
  • eLoc to help travellers and commuters search, share and navigate to a destination's exact doorstep easily and quickly
  • eLoc to help businesses in the e-commerce, transportation, logistics and field operations domains

The Indian Department of Post in association with MapmyIndia has launched a pilot project- eLocations aka eLoc – to digitally map the physical property addresses. The postal department comes under the purview of Ministry of Communication and is looking to evaluate the effectiveness of digital addressing system. With this, the Indian government aims to further evaluate the idea of easing the address location process and then provide possibilities to link them to other information such as property title, property tax records, available utilities, etc.

What Is ELoc?

eLoc by MapmyIndia is the Aadhaar of addresses. eLoc of any place, be it a building/flat/office/business/city/village/locality/road and so on, is a short, 6 character code (for e.g. 8GDTYX, or MMI000), which is easy to remember, share, type and provide.

This six digits alphanumeric code or the digital address for a physical property can be used parallelly to the existing postal address.

These eLocations are based on 3D, digital map database and turn-by-turn navigation solution built by MapmyIndia. Thus, when a person, business or official searches for a place by entering its eLoc, he/she can see the precise map location of that place, get turn-by-turn directions to the exact entrance doorstep of that place, and also see information about that place besides its location, such as reviews, photos and other information provided by the place’s owner, businesses and governments.

Tuesday 7 November 2017

Demonetization-Corrupt being chased for the 1st time in India





8th Nov 2016-8pm, (One year back)-this was a memorable day in India, as important as Independence Day. Finally there was a Prime Minister in this country who could hold the corrupt by the balls and toss them up. The network of corrupt class that had entrenched themselves deeply into the system since independence was brought to their knees.


On this day in Indian History, the first concrete measure to tackle corruption was initiated. The scale of it was unprecedented. A lot more needs to be done in a country burdened by its babudom and crooked political & financial network. To say that Demonetization was a resounding success is an understatement.

This day, this time and this generation will be registered in History as the start of Independent India's fight against corruption, and to bring accountability into Public Life. PM Modi will credited as the person who was bold enough to start it, against all odds, against all opposition.















1) Demonetization exposed the extent of the corrupt network that was firmly in place all over India. Immediately after the Rs.2,000 note was released, it was grabbed mostly by the corrupt infrastructure. But it also turned into a beautiful honey trap. The taxman had another pink trail to follow!

2) Around 35,000 of the 2.24 lakh shell companies deposited Rs 17,000 crore post the demonetisation drive only to withdraw it later, thus making their objectives clear.

In one such case an account with a negative balance just before the demonetisation day saw Rs.2,484 crore being deposited and withdrawn soon after. 2 lakh such accounts were identified. Its been recorded that Rs.35,000 crore of money has entered the banking system but there is no money trail to it. This money is over twice the amount that went missing post-demonetisation. Many of the 35,000 companies have been struck off from the registry, but their promoters and executives will still be held responsible. Around 300,000 directors have been disqualified because the companies on whose boards they sit, did not comply with the statutory requirement of filing annual returns.

3)Serious Fraud Investigation Office (SFIO), a multi-disciplinary body attached to the corporate affairs ministry, has been authorized to make arrests for certain company law violations. The corporate affairs ministry has also asked the finance ministry to make these offences under the Prevention of Money Laundering Act.

4) 17.73 lakh suspicious cases involving Rs 3.68 lakh crore have been identified by the taxman in 23.22 lakh bank accounts post demonetisation. In come tax department has already issued notices to 70,000 entities who deposited over Rs 50 lakh in cash in banks but chose not to file tax returns or respond to the relevant Income Tax Department advisories, the sources said. These notices will be issued under Section 142 (1) of the I-T Act (inquiry before assessment), they said. Similarly, about 30,000 scrutiny notices will be issued to those whose deposits and tax returns were found to be starkly “deviant” from their past behaviour or their accounts showed huge monetary transactions post demonetisation, they added. As many as 20,572 tax returns have been selected for the scrutiny procedure by the department post demonetisation, declared by the government on November 8 last year. The rest of the scrutiny notices will be issued in due course, they added.

5) The I-T department had conducted 900 searches between November 9, 2016, and March this year, leading to seizure of assets worth Rs 900 crore, including Rs 636 crore in cash. The searched led to the disclosure of Rs 7,961 crore undisclosed income, according to the official data. During the same period, the department conducted 8,239 survey operations leading to detection of Rs 6,745 crore of black money.

6) Total number of all returns (electronic + paper) filed during the entire Financial Year 2016-17 was 5.43 crore which is 17.3% more than the returns filed during FY 2015-16. 

7) Collection of advance tax under personal income tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79 per cent over the corresponding period in FY 2016-2017."

8) 14,000 properties of more than Rs.1 crore each have been identified where persons have not even filed Income Tax Returns.

9) 1,300 high-risk cases where people's real estate deals and land purchases did not match with their tax profiles. The total value of these property transaction was more than Rs 6,000 crore.

10) 20 per cent reduction in cash relative to what might have been without demonetisation," Subramanian said adding that the cash-to-GDP ratio has come down by 1.6 percentage points."

11) Almost the entire cash holding of the economy now has an address. 

There are some who think that Demonetization was a good idea but badly executed. The very fact that most of the Rs.2000 notes were lapped up by the nexus of crooks in the system is proof that little could have been done from within the system that would not have gone unnoticed by these foxes and vultures.

Besides, its almost impossible to refit the ATMs across the country to dispense either only Rs.100 notes or to dispense the new notes, without the massive crooked network noticing it

An ATM has drawers called cassettes filled with money. Usually, an ATM holds four cassettes. (There are some with three and two as well.) Many ATMs have 2 cassettes filled with ₹1,000 notes, one with ₹500 notes and one with ₹100 notes. On an average, a cassette's maximum capacity is 2,000 notes.


Now, each cassette is also calibrated to act in a certain manner to handle a certain currency. It works with the software and the whole ATM machine in tandem to identify features such as weight, dimensions, design and security features of a currency and dispense them.

The magnitude of the operation can be estimated from the fact that there are over 2 lakh ATMs spread across the country. The average transaction size per day is ₹4,000 and the average number of transactions is 125 per ATM. So, the ATMs handle over ₹10,000 crore in currency everyday.

To even think that Demonetization could have been executed across India by first preparing the ATMs is an absurdity. Even if the printing and circulation of Rs.100 notes was increased six months in advance, definitely someone would have made an equation.

There are some who say that the existing ways and machinery available could have been used to clean up the system. The absolute truth is nothing was done so far and the existing machinery was not going to do this job. PM Modi who was sailing smooth with hardly any opposition did not have to indulge in something as massive and complicated as this to spoil his own political career. 

Politically, Demonetization was executed at the Perfect Time. The 2nd year of the Modi's term, he undertook this unprecedented massive exercise when the economy was cruising in overdrive. One year down the line, the country has already absorbed the worst part of the expected economic consequences and while the squeamish Lutyens were crying crocodile tears for the poor, most of the people in the country have got on and the economy has rebound, picked up and become more accountable. By 2019, when the next elections come, PM Modi will be sitting pretty with a stronger economy with better financial systems in place.

2G - 😷 CWG - 😷 Coalgate - 😷 National Herald - 😷


Seriously, the opposition in India has been left with no strategy to take on the Modi government. Rahul Gandhi standing in line for withdrawing money and the now silent Kejri getting shouted down Modi Modi Modi, did offer good entertainment.

http://www.livemint.com/Opinion/wxDyTt00PCTYcn5AQSzsEK/Demo-one-year-later-Success-or-failure.html
Narendra Modi took a huge political risk with Demo by doing something that would affect each person and not just one section and with that he pressed the reset button on corruption. For a deeply corrupt nation, any anti-corruption move has to be multi-pronged and results will take at least half a decade to play out. But the early successes are showing up in the data.
The Tom and Jerry show
These are two examples from the 10 given by the tax department that give the methods adopted for conversion of unaccounted cash by various categories of people. 
Hyderabad-Based Doctor: The doctor was found to have deposited more than Rs11 crore in specified bank notes after 8 November 2016 in three bank accounts. During questioning, the individual could not provide any document to substantiate the source of the deposits, which was later admitted as undisclosed income. Prohibitory orders were initially placed on the bank accounts, which were later lifted and a sum of Rs7.50 crore was seized. 
Demonetisation also forced government employees to deposit unaccounted cash in their bank accounts
Government employee in Bhubaneswar: A government employee was searched on the basis of information on unexplained cash deposits into the accounts maintained with various banks in his own name as well as in the name of his family members. Investigations also revealed that his wife, a homemaker with no ascertainable sources of income, had purchased land in Bhubaneswar by making a cash payment of Rs53 lakh, the sources of which could not be explained. A total cash of Rs2.28 crore has been seized in this case. The matter has also been referred to the state vigilance department.
http://www.livemint.com/Opinion/wxDyTt00PCTYcn5AQSzsEK/Demo-one-year-later-Success-or-failure.html
Has there been a dent in corruption and black money? Anecdotal stories say that high-level corruption in the central government is gone, but the cancer of graft elsewhere in the system still thrives. It is unrealistic to expect the deep-rooted habit of graft to disappear overnight, but at least there is serious political will behind the anti-corruption war in India today. What of black money, or money on which income tax has not been paid? Black money is back in the system—talk to any builder (real estate is the biggest sump of black money and talking to builders is a quick way to figure out if cash deals are back) and they say it is as if Demo never happened. But they admit to the cash ratio going down and the fear factor lurking at the back of every deal.
Look next at the data on currency in the system and digitisation. Reserve Bank of India data shows that currency held by the public is now down almost 10% as compared to last year. Currency in circulation is down by 17%, says the ministry of finance; this means that more than Rs3 trillion, which was earlier cash in circulation, is now part of the formal financial system. Financialisation of household savings got a hard push with Demo with assets of life insurance products and mutual funds showing an uptick post Demo, and cash-based real estate is still to recover.
Digitisation of transactions is growing with the value of NEFT (National Electronic Funds Transfer) transactions rising from Rs9.5 trillion to Rs12.5 trillion over a year. Digital transactions leave a trail and the more India moves to such transactions, the bigger is the blow to black money.
A metric to measure the impact of Demo on black money would be tax compliance. Rising tax compliance is a win for the war on corruption. A ministry of finance press release (you can see it here: bit.ly/2y9tRMr) says that the number of returns filed as of August 2017 was up almost 25% compared to an increase of about 10% a year ago. The Economic Survey puts the number of new taxpayers due to Demo at about 540,000 in FY17, with a possible rise in returned income at Rs10,587 crore. You can see the table here: bit.ly/2vtrq6W. These are clear short-term gains in tax compliance and will need a sustained effort to keep the momentum going.
Indian Finance Minister Arun Jaitley on Demonetization
The finance minister said while the 10 years of United Progressive Alliance (UPA) were characterised by “policy paralysis”, the Modi dispensation introducted structural reforms to make India a developed nation and give it a cleaner economy.



Jaitley said the BJP believes that status quo in economy needed to be shaken up to end corruption. Taking on the Congress over the issue, Jaitley said the previous Congress governments never took any such big step against black money.


“The Congress’ main aim is to serve the family whereas BJP wants to serve the nation.” Elaborating on the benefits of demonetisation, the minister said it was aimed at making India a more formal economy with a broader tax base and less cash in the system. “Less cash in the system may not end corruption but makes corruption difficult,” he said, adding terror funding got “squeezed” post-demonetisation.




economictimes.indiatimes.com

Demonetisation: Modi magic holds, people still back demonetisation: ET online survey

For a year since November 8 when Prime Minister Narendra Modi announced demonetisation in a televised address to the nation, there has been endless criticism of the shock decision to ban high-currency notes. 

Even though Modi seemed to have gained electorally from his decision, indicating popular support, he has been held responsible by a number of experts for job losses, bringing the GDP down and crippling small businesses with his ill-conceived move. Eminent economists such as former RBI chief Raghuram Rajan too has spoken out against the move.

But after a year—enough time to see the results of demonetisation—more people support Modi on demonetisation than those who criticise him.

An online survey conducted by Economictimes.com to mark the anniversary of demonetisation showed significant support for Modi's controversial move. In response to the question, 'Overall, how do you rate demonetisation?', 38% said it was a success. 30% said it had mixed results. Only 32% said it was a failure.

A total of over 10,000 ET Online readers had responded to the survey.



Modi magic holds, people still back demonetisation: ET online survey

Only 26% thought demonetisation damaged the economy for longer term. 32% said it made the economy more transparent while 42% said it made the economy more transparent but with some collateral damage.


Modi magic holds, people still back demonetisation: ET online survey

On the impact of demonetisation on jobs—a hot-button issue for Modi critics—only 23% said it had a long-term negative impact on jobs. 45% said it reduced a number of jobs in the short term while 32% said it had no impact on jobs. 77% not seeing any long-term loss of jobs due to demonetisation shows that most of the people don't buy into the argument that demonetisation killed jobs.


Modi magic holds, people still back demonetisation: ET online survey

It's not clear if Modi has kept people by his side with his charismatic rhetoric despite failure of demonetisation or his opponents are plain wrong, but people don't see demonetisation as a decision that wrecked a growing economy.

This is more evident from responses to the question, 'If Modi bans Rs 2,000 currency note, how will it impact the economy?'. 56% said it would hit black-money hoarders. 31% said it would bring down economic growth. 13% say it would adversely impact honest businesses. This means if Modi does another round of demonetisation, he is sure to have some popular support.


Modi magic holds, people still back demonetisation: ET online survey


Despite massive criticism of demonetisation and its impact by experts as well as common citizens, Modi has been able to convince people that he took this step in larger public interest and not due to any vested interest. In response to the question, 'What was Modi's real purpose behind demonetisation?', 71% said his purpose was to reduce
black money
in the economy. 15% said it was to get the votes of the poor while 14% said it was to divert attention from communal issues.


Modi magic holds, people still back demonetisation: ET online survey

The overall picture that the survey presents is this: demonetisation may have led to short-term pain but Modi did it in public interest and it has not ruined the economy.


Modi magic holds, people still back demonetisation: ET online survey

Popular support was evident from post-demonetisation elections in Uttar Pradesh in which Modi helped his party win a landslide victory. If people continue to support Modi on demonetisation, it means critics of demonetisation in the opposition parties are themselves damaging their electoral prospects by barking up the wrong tree. 

People most affected by Modi’s Anti-Black Money campaign


The country as a whole has been affected by the anti-black money campaign. As common citizens, we all had to face cash troubles and wait in long queues for ATMs, despite that, the move was supported largely. The targeted section of corrupt now face nightmares.
https://criticsunion.com/2016/11/11/10-people-affected-modis-anti-black-money-campaign/

Politicians

In Indian elections till about a decade ago booth capturing was the biggest problem. With time and efforts of election commission booth capturing was almost eliminated but electoral funding still remains a looming threat to our democratic system. 

Fighting elections is a costly affair and the expenditure limits set up by election commission are unrealistic and barring a few almost all parties take anonymous donations from affluent business class and which is mostly tax evaded money. Obviously, donations from businessmen are paid back in terms of skewed policies and biased decisions in their favour. 

Demonetisation along with the budgetary announcements by FM is a crucial step to reduce the amount of anonymous donations to parties from twenty thousand to two thousand rupees to curtail black money into politics.

Dravidian political parties are known to win elections on money power; one of them hardly conducts public meetings and only distributes money as evident in R K Nagar by poll caused by Jayalalithaa’s death. 

Parties in Maharashtra are famous for giving tickets to real estate businessmen and mint their money. Similarly, UP is also known for regional parties using black money to fund elections by selling tickets. 

Measures like demonetisation are set to deliver a big jolt to many of them as was evident in UP elections where some parties had less money to spend. Use of tax evaded money for donation to political parties to get undue favours in return is set to reduce in the times to come.

Demonetization will cause a cash crunch for political parties as most of them depended on black money. This would in turn open the debate for much needed electoral reforms that’s been pending for long and ultimately may be a step towards the cleansing of the system. 

If politics does not require black money from corrupt people they may legislate and govern better and not hesitate from taking stern actions against corrupt businessmen, which would formalise the economy to a greater extent leaving the exchequer richer.

Hawala Dealers


The shadow economy created due to hawala dealings overburdens the honest, hardworking taxpayers who constitute mere one percent of the total population. 

Hawala trading is one of the major sources of black money. In hawala, the money is transferred from source to destination without actually moving it. It is a parallel illegal network where the money is given to an agent at the source and is collected from a network agent at the destination in exchange of a commission and government loses tax on such illegal transfers.

In most of the cases this is black money and thus to evade tax authorities this parallel route is used to transfer money. Audits reports and IT raids have proved that a large part of Indian economy is black and that the dishonest politicians, industrialists, bureaucrats have stashed huge amounts of illegal wealth in foreign banks in tax heaven countries.

Hawala trade has also received a punch as a result of demonetization. With demonetization rendering old currency notes invalid, the entire network is broken. Hawala traders are no longer accepting cash and transferring it to a destination because the currency is not a legal tender. Such money if deposited into banks would attract heavy penalties leaving that also as not a very good option.

This random action will result in great losses to such transactions which were outside the tax net and they may not be able to recover from it for long.


Real Estate Mafia

In towns, cities and metros, real estate is a big source of black money. In India, a large percentage of land deals are underreported. 

Whenever you go to a builder to see a flat, you always have to pay from 20 up to 40 percent of the cost in cash. No builder takes 100% cash and they are able to hide a significant part of their income from tax authorities. With demonetization, they will not be able to provide the sources of their illegally acquired money or face heavy penalties.

Also, with the increased use of technology in land records keeping it would make land deals more transparent. Also cases like Adarsh society scam will not happen with all government lands recorded in the system making it difficult for land hoarders to illegally make constructions on them. 

All these steps would break the builder politician nexus as well resulting in cheaper homes for home buyers. This will bring down the amount of black money in elections as well making it more possible for honest citizens to fight elections.

Benami properties transactions and illicit land dealings have created a stockpile of black money. Real estate goons project lands as agricultural lands and then transfer them as residential and make hefty profits. 

This whole game of power and political connections has virtually made it impossible for common man to afford house at otherwise affordable rates. But promises of action against benami properties has shocked real estate mafia and caught them unguarded. A considerable decline in real estate pieces proves the effectiveness of the policies enacted by Modi government.

Fake Currency Dealers
Another important motive achieved through demonetization is a curb on black money. Pakistan imports more ink and paper than it needs for currency printing for itself. ISI runs fake currency printing presses in Pakistan which is smuggled into India through Bangladesh and Nepal routes.

NIA studies show that fake currency notes worth rupees 400 crore are in circulation in India and a large portion of them are in the form of demonetized currency notes. The fake currency will have to be extinguished or brought into the banking system making their detection possible. In addition to that, the new 500 and 2000 rupee notes have world class security features making their duplication difficult for Pakistan so it’s a way to stay a step ahead of the copiers.

Demonetization move by the prime minister widened the tax net forcing people to make pan cards and adhaar cards and pay taxes. Fake currency is no longer available as a safe option like before and people want to avoid dealing with it. This would have a ripple effect and would reduce corruption and illegal activities in general. People fear Modi may be taking more steps in future to curb black money and hence may not prefer it.


Terrorist Organizations


The old notes were copied by Pakistan and used to finance terror in India. The new notes have advanced security features that may not be easy to copy for them for a long time. This is set to give a big blow to terror outfits that use this fake money to fund terrorists and export them to India. 

Terrorists’ organisations like Hizb-ul-Mujahideen collect money in the form of donations in Pakistan and use Hawala routes to route it into India to carry out terror activities.

With demonetization the Hawala route is broken and it’s not possible for Pakistan to route money into India to spread terror. Their existing currency stacks in India face confiscation or may have to be extinguished. Their fake currency printing machines also printed mostly 500 and 1000 rupees notes that have been demonetised and new notes with advanced features may not be easy to duplicate.

Within weeks of demonetization, Kashmir became a more peaceful place extinguishing the cash from terror outfits. In fact, no internal riots and clashes took place in India for the period after demonetization as a result of cash crunch.


Sports Betting

Gambling in India is banned except lotteries but India have an illegal racket running nationwide that conducts betting on many things. The net turnover of illegal batting in India is estimated to be around $150bn and bulk of which is in cricket. Other things that have betting in India are movie performances on silver screen, election results, weather predictions etc.

IPL in cricket itself accounts for a large part of betting money in India. Indian bettors often have to transact money with foreigners. E-platforms such as Moneybookers and neteller are popular payment methods for such transactions. Online e-wallets are also used in which money is deposited by payees and it is then used to fund betting activities. Measures like demonetization have made circumventing the rules difficult as the cash depositors may be asked to reveal the sources of the money later.

As part of the income tax disclosure scheme, around 65 thousand crore rupees was declared but it is alleged that a large part of this illegal wealth still remains unearthed and after demonetization the part of this money that’s cash has become piece of paper. However, the effect of demonetization on the money stashed abroad in still unclear. This foreign money is estimated to be more than ten times the countries total debt. Gamblers and betting agents are having a hard time as e-transactions leave money trail for tracking and may invite troubles for them anytime in the future.


Educational Institutions

Indian education system is also a huge generator of black money every year. Capitation fees of around 50 thousand crore is paid at various educational levels from KG to PG in India.

This so generated black money often finds its ways to terrorism, election financing and religious conversions. Medical and engineering colleges are the biggest sources of black money with every seat going for lakhs of rupees. These educational institutes use that money to pay bribe to get accreditations from medical council and AICTE. Government has plans to conduct single common entrance exam to fulfil their seats which will reduce corruption. Auditing their financial statements, releasing them on websites, strict monitoring of their funds etc are some other measures set to reduce black money in educational institutes.

Thus, educational institutes can no longer have usual donation practices and there is looming fear in the minds of people related to all sectors that tax authorities are keeping strict vigil at their activities. This will definitely help poor parents to afford quality education for their children.


Fake Trusts and Charity

Fake trusts and charity are also a big source of black money in India. They are created sometimes only to turn black money into white. They take black money, evade taxes on them and instead of using that money for charitable purposes route it back to the donors after deducting a commission. While we can’t stop donations to charitable organisations, at least the large donations must not happen in cash.

They should be done by account payee cheques only and PAN number should always be accompanied in case of large donations. Politicians and businessmen use such trusts to launder their ill-gotten tax evaded black money into the system. 

At least a million charitable trusts and private organisations misuse the rules to employ banking and other channels to launder money. Some fake NGO’s also exist; they conduct fake demonstrations where their ultimate aim is to launder money.

Tax enforcement measures and anti black money campaign by the current Modi government has proved effective in cleaning up the system. The manifesto promises, attitude of the government, and a series of significant systemic policy changes have seen drastic changes in the defiant mindset of black money hoarders. Auditing exercises across the nation, CAG reports and income tax raids have spoiled the party for fake NGOs and charity trusts.


Rich Agricultural Land Owners

In India, agricultural income is tax free but this channel is often misused to launder black money costing the exchequer in billions. 

While it is true that a large number of farmers in India are poor, there exist few very rich land owners that masquerade as poor farmers. They, even if they are rich, enjoy all kinds of power and fertilizer subsidies, minimum support prices set up by the government to protect poor farmers, loan waivers and most of all- tax free income. 

Rich farmers and such corporations are very influential in the government and bureaucracy and lobby against legislations that would pin them down. The system is hoodwinked by such farmers by buying cheap and uncultivable land. They would declare it to be cultivable land and thus all of their incomes become tax exempted. With the announcement of demonetization such large piles of illegally hoarded cash would become useless and poor farmers would benefit.

Another common practice is to buy subsidised agricultural land and convert it into residential land over a period with the help of people in influential positions or corrupt politician/bureaucrats. In this way, these affluent fake farmers purchase subsidised land at very low cost and sell them at hefty profits as residential land after conversion. 

This directly impacts poor farmers as they are denied their right to low cost subsidised agricultural land and also it is loss of natural resources as fertile agricultural land is declared residential fictitiously. 

The profits earned on these agricultural land deals are kept hidden from the system and become a statistics in black money figures. 

But now, due to strict action on illegal land dealings, ‘benami’ transactions, ill wealth and action on corrupt bureaucrats by the Modi government have plugged the loopholes in the system. The fake farmers are looking for ways to dispose off their ill gotten wealth before the taxman can initiate criminal proceedings against them.


Film Industry

Film industry is another field where a lot of black money is involved. In a wikileaks cable in 2011, it got revealed that film industry welcomed the funds from politicians and gangsters who are looking to invest their ill-gotten funds. 

In 2012, in a sting operation by cobrapost also showed film directors admitting that film industry uses black money to convert it into white. The IT act 1961 applies on the revenue sources of the film industry. Parts of it regulate TDS on all payments to directors, actors, studios and distributors as per sections 192, 194C, 194J etc. 

By investing their tax evaded money into films, people may earn returns on them and which may in turn be used to conduct other illegal activities as well, in addition to tax losses to the country.

In 2012, a news website, Cobrapost’s sting operation caught directors admitting on record that how Indian film industry is working for black money to white conversion. Some of the big names in the industry have registered their companies outside India which is suspicious for Tax authorities.

Warnings, income tax declaration scheme, demonetisation, blocking routes to tax heaven countries, stress on e-transactions, aadhaar linking and GST implementation shows the intent and determination of the government to uproot black money and corruption. This incessant drive against illegal money has left corrupts people in the film industry puzzled and vulnerable.

Naxalites and Maoist Groups

Naxalites and such home grown anti social and internal terrorist groups want to destabilise government. They rely on extorted, unaccounted and ill gotten wealth from various illegal sources. On top of it they use this hard earned money of kidnapped or robbed people to carry out anti social and anti democratic violent activities that threatens the integrity and sovereignty of our country.

Another benefit of demonetization is that Naxal financing has reduced. Naxalites used to extort money from people and used that money to illegally run their syndicate and execute violence. They may be left with cash that has become illegal now. Obviously, they must not have had bank accounts to deposit their cash in the system. 

Less cash to such internal terrorists means not just monetary benefit but also it would help in maintaining peace and amity. Naxal affected regions are bereft of development, education, health services and government schemes. If Naxalism stops, the affected population can have access to normal and peaceful life. Also, the security personnel deployed to curb such acts of violence can be posted for some more productive and nation building tasks.

These moves have also forced people to disclose their legally earned money and deposit it into banks. The depositors will earn interests and at the same time their money would be safe. This will also increase banking culture among Indians and formalise the economy. 

The banks may use the deposited cash for increasing economic activities such as lending to entrepreneurs which will increase employment in the country. It will open up a window for naxal families to join the mainstream banking system.

The large cash with the banks will also mean banks have more money to lend and thus home and car loans may become cheaper and thus manufacturing and real estate sectors may see a boom in the times to come. More people especially the underprivileged may be able to afford their own houses in the years to come as a result of demonetization.

Corrupt Bureaucrats



Bribery is a big way in India that generates black money. In schools, colleges, hospitals, pension offices, recruitment boards, electricity department, water department everywhere bribery is rampant. It is common belief these days that government job interviews can’t be cleared until bribe is paid. 

A Transparency international study in 2005 showed that 62% Indians had paid bribe in their lives had paid bribes to get their tasks done in government offices. The same study in 2008 showed the number of bribe payer Indians to be 40%. A 2017 survey shows that seven out of 10 persons, who had to deal with public offices in India, had paid a bribe. Nearly 40% of the survey population believed that corruption has increased in last 12 months. A whopping 73 % of those who had paid a bride belonged to poor sections.

With demonetization, the cash stashed as a result of at least large bribes would be rendered useless and RBI would be extinguished of its liabilities. This measure would bring down the level of bribes in public offices in the future. Indian law has provisions to punish bribe takers in public offices but India also have a sprawling bureaucracy and a weak judiciary making it possible for dishonest bribe seekers get away with them.

Modi government has stressed on less cash economy and made systematic changes to encourage people to use e-wallets and e-transactions. In a less cash economy the bundles of black money cannot be stacked and taking bribes with an e-transaction is suicidal as it leaves a money trail and tax authorities can nab you anytime following the transaction route and cause. Therefore, cash is not available to offer bribes using black money to corrupt bureaucrats and they do not dare to take bribes using electronic channels due to fear of being tracked by audit and tax authorities.

Although demonetization was targeted to give a blow to corrupt people that have huge amounts of black money, the common man had to face great difficulties due to it. Only about 32% Indians have access to banks and there is just one bank on every 9500 Indians. The common people had to queue outside banks and ATM’s for hours. Often the ATM’s and banks would run out of cash leaving people more and more frustrated. The government had to face severe criticism from opposition parties and media for poor planning and implementation that wiped out 86% of the total volume of Indian currency. The people without bank accounts were the most severely affected. It is true that people were losing patience for the inconveniences faced yet most of them supported the prime minister for his far sighted intentions to fight black and counterfeit money.

COMMON MAN



As a result of demonetization, people started using their e-wallets, debit and credit cards and other online banking payment methods more and more. 

Even after the country is fully remonetized, the people may not give up transacting using online methods. Thus it may prove to be a giant step towards making India a less cash economy. 

A less cash economy is better in the sense that e-cash is safer to carry, makes giving bribes almost impossible and leaves behind a digital footprint forever that the tax agencies can relook at. It also makes tax evasion impossible as a result of which the country’s net tax net would increase and government will be left with more money to spend on public welfare and infrastructure related schemes.

More IT and banking jobs may be created for more and more and more banking and online transactions happening as a result of demonetization. Online accounts need technological infrastructure and maintenance and more people may be hired to perform such works in the future. This would generate employment opportunities for young professionals. India is fast becoming digital as a result of demonetization.

Black money was one of the reasons for inflation in India. Tax evaded income in the hands of the people would make the demand of goods go high in the market while the supplies remain the same. With a crackdown on black money through demonetization, the inflation is going to be under control in the future and the common man is going to benefit the most from this.

As a result of demonetization, defaulters in the areas like property tax, bank loans, electricity and telephone bills are rushing to pay in cash fearing if they didn’t do so the cash may become useless.

Additionally, government has implemented GST that would widen the tax net, make tax evasion almost impossible and is set to catalyse the economy. It is supposed to lift the growth rate by 2%. GST has reduced cascading tax effects from Indian consumers and that’s going to benefit them in future. The businessmen have to file taxes in a simple manner online leaving no room for harassment at the hands of tax authorities. It is set to increase the overall efficacy in logistics as now there is going to be one tax in the nation that is the destination based tax. 

Also, as per the provisions in GST, less developed states get a boost. Multiplicity of taxes is eliminated as a result of GST and as a result of this consumers are going to benefit from increased market competition.


Actual voice and hope of common man in India