Wednesday, December 28, 2016


A new writ petition (PIL) is filed in the Supreme Court of India seeking direction to the Medical Council of India (MCI) and Indian government to take steps for immediate removal of disgraced ex-MCI president, Dr. Ketan Desai, from the post of World Medical Association (WMA) president. 

The PIL has also sought stringent disciplinary action against three long-term Desai supporters and senior MCI/IMA members (Dr. Ajay Kumar, Dr. Vinay Aggarwal and Dr. Sudipto Roy) for their blatant lie before the WMA that all charges against Dr. Desai have been withdrawn by the Indian authority that recently prompted the world medical body to reinstate Dr. Desai as WMA president. 

Dr. Desai is still waiting for his criminal trial to begin in the CBI ‘trap” case after he was caught red-handed for taking 2 crore rupees from a private medical college in exchange of granting MCI recognition to admit MBBS students when Desai was still the MCI president in 2010. 

PBT president, Dr. Kunal Saha, has traveled to India to further this and other medico-legal cases and to promote PBT’s continued battle against medical negligence and healthcare corruption. The new PIL is likely to be listed for hearing after the Supreme Court reopens on January 3.

Sunday, December 25, 2016

Online scam: Several duped by cancer-cure 'wonder seed'

HYDERABAD: Cyber crime sleuths of Hyderabad have stumbled upon a new racket of fraudsters luring denizens into buying fake cancer-curing `wonder seed' against money .

Police said cyber criminals are operating from the United Kingdom and some local pharma companies have also fallen prey to the fake suppliers of the magic remedy .

In the latest fraud recorded by sleuths at the Hyderabad cyber crime station on November 15, a manager in private company (victim) lost Rs 25 lakh to fraudsters. At least four such cases have been recorded in the city in recent months, police said. The process starts with either a friend request on facebook or through an email, followed by a call from a woman using a United Kingdom (UK) number, a police official said.

The woman would explain the business in detail and also help with contacts of dealers in Delhi, who can be contacted for finally supplying the wonder seed to them for a cut, little realising that there is nothing wonderful hidden in the seeds.

“These are usually seeds of stray plants which do not have any medicinal value. Seeds of stray plants, that look like almond have been used in most cases, Md. Riyazuddin, cyber crime inspectorCyberabad told TOI.

Afew members of the organized fraudster gangs have dedicated bank accounts for receiving the money from victims.The money once received is distributed among the gang members. “The victims are lured into it by saying that pharma companies in UK purchase the product for 400 dollars per kg, whereas the dealer would offer to the victim for as little as Rs5,000 per kg. It is the newest trick used by organized groups having members across locations. We suspect Nigerian fraudsters are kingpins in this new technique of cyber fraud,“ said P Ravi Kiran, Inspector, cyber crime, Hyderabad.

In another case recorded last month, fraudsters vanis hed with Rs 3cr from a businessman in Tarnaka. The victim committed suicide following the fraud. The case came to light when his son lodged a complaint with the law and order police station. Police warned that there might also be innocent victims buying these `wonder seeds' online for their personal consumption, especially people who have cancer patients at their homes.
Who is a BHAKT?
The Ten Commandments for a Bhakt.

1. Thou shall not criticize the BJP or Modi or the Government.
    Anyone criticizing shall be called "Anti-National" and  be asked to "Go To Pakistan"

2. Thou shalt divert anyone questioning the BJP, Modi or Government to the 60 years of Congress Rule.

3.Thou shalt repeat "Modi!, Modi!, Modi!, anywhere and everywhere like the Pigs in  George Orwell's "Animal Farm" bleating "Four Legs Good - Two legs Bad"

4. Thou shalt praise Demonitization in spite of all the adverse reports in the National and International media and hundreds of people dying all over India.

5. Thou shalt watch only the Modi channels like "India TV", "Zee News", "Aaj Tak" and "ABP News". More channels will be added to the list when they too start praising Modi.

6. Thou shalt not watch Anti-National channels like "NDTV"

7. Thou shalt praise Digital, Less Cash because Modi does so even though Cell connectivity is poor and Internet is either slow or not available.

8. Thou shall forward all social media messages initiated by the Modi Dirty Tricks Department to show carnage done by the minorities to create disharmony and win elections.

9. Thou shalt forward all inflammatory messages of poisonous speeches by the various  political leaders of the BJP.

I have left one of the Commandments blank. 
This will be filled in from inputs sent by our readers.

Saturday, December 24, 2016

Modi's Notebandi Drive Hits You Hard. But It DOES NOT Impact This Privileged Group

Political parties are getting away with it.

I am not talking thousands of rupees...

I am talking hundreds of crores...year after anonymous donations.

Much of it in cash, which the parties can deposit in a bank account without scrutiny.

Meanwhile, you and I must give detailed explanations for every deposit we make. Either now, or when the Income Tax officials come calling.

Something is not right. In fact, it's disgusting, the state of affairs.

Here, dear reader, is the full story...

India is in chaos.

Our lives are in chaos.

The future of our once resilient nation is uncertain. Growth and progress can no longer be taken for granted.

Every day brings new announcements about how you and all honest, tax-paying Indians must adhere to draconian new rules and regulations regarding YOUR own money. For the record, a time of writing this, the Reserve Bank of India has come up with 59 orders since November 10, 2016.

Money you worked hard for.

Money you have saved for years.

Money you have set aside for your kids and retirement.

The purpose?

To bleed so-called ‘black money' out of the system.

To your credit, you have borne it all with admirable patience.

You stood in queues for hours every day.

You felt awful as you dipped into your kids' piggy banks to meet contingencies.

You took it on the chin...for ‘nation building'.

That's because Mr Modi's fight against black money, call it demonetization or notebandi, is to catch the big crooks. It's a good fight...and you were just doing your part. After all, the goal is to quash the black economy once and for all.


Think again...

In the fight against black money, a key beneficiary has been left out...the 1,866 political parties.

Yes, the fight against black money has conveniently side stepped the political parties. They enjoy privileges you and I don't. It's a biased war...and we're fighting it on behalf of often corrupt political entities.

Here's proof...

If it is a deposit in the account of a political party, they are exempt. But if it is deposited in individual’s account, then that information will come into our radar.
- Hasmukh Adhia, Revenue Secretary, Government of India

Yes, this is official policy for the 1,866 political parties...and they don't even try to sugarcoat it.

Why should they? This is the law of the land...Section 13A of the Income Tax Act, 1961, to be precise.

You have to stand in a queue...and prove you are legitimate by showing a PAN Card or some other identification. And if and when the Income Tax sleuths show up, you need to explain every deposit you make in great detail.

The political parties, on the other hand, get a free pass.

After all, they are special...the masters of this country with the power to frame laws such as this...

Political parties are currently not required to publicly disclose contributions of up to Rs 20,000. This means that any political party that receives individual donations of up to Rs 20,000 in cash can deposit it in bank accounts. This money will not be investigated simply because these donations need not be publicly disclosed.

And if you thought that was's a shocking statistic from the report Analysis of Income & Expenditure of National Political Parties for FY- 2014-2015 : 

The BSP claims it hasn't received any donations above Rs 20,000. That's why we can't find any BSP donation details in the public domain. And this has been the party line, so to speak, for ten years now. 

Yet...they get crores year after year.

But it's not just the BSP.

No public information is available on where the BJP got Rs 434.7 crores in 2014-2015, which represents about 50% of the party's total donations.

We also have no idea where the Congress gets 32% of its funding.

We are talking about hundreds of unaccounted crores every year.

No wonder respected people are starting to speak out...

Many political parties are set up with the sole intention of laundering black money.
- Former Chief Election Commissioner, TS Krishna Murthy 

The malaise runs deep.

Yet no one is doing anything about it.

Except for the Election Commission.

The Election Commission of India has proposed that the limit for anonymous donations be reduced from Rs 20,000 to Rs 2,000. 

This is laudable. But it's unlikely to ever be implemented... And even if it is implemented, what stops political parties from showing donations of less than Rs 2,000 and getting away with it, like they currently are.

We need to take matters in our own hands. And do something to set this right...NOW.

I am Vivek Kaul, editor of Vivek Kaul's Diary.

I have dedicated my life to taking up the issues that matter most to you and your future. Even if the issues involve the powers to be.

My only commitment is to you. Period.

That's why I have decided to call on you urgently:

Please add your support to my mission to bring in equality between the politicians and you and me, by demanding an immediate repealing of Section 13A of the Income Tax Act 1961.

We must sound a great cry across India to ensure that every concerned citizen gets behind this move.

It's not complicated. And we can do it very quickly if we create a huge ‘buzz' on the internet with the petition.

All we need is the President of India to set this in motion.

I firmly believe that, with your help, it is possible. Please forward this message to all your friends and ask them to also pass it on. This message – and our petition – could spread like wildfire.

But we must act immediately; it is very important.

This law not only allows anonymous funding of political parties. It is also, at least partially, the cause of many of this country's ails.

But a clean funding process guarantees a better polity.

So please sign this petition to request the President of India to instruct the Government of India to immediately initiate steps to repeal 13A of the Income Tax Act, 1961. 

Then pass this message on to inform your relatives and friends of the mess we are in and encourage them to support the movement.

I will personally send the signed petition to the President of India.

I need 25,000 signatures before the 6th of January to get this moving. Help me make this happen...and thereby bring in much needed change in the way political parties are being funded, and the privileged treatment they enjoy.

Sign this petition now...

Thanks in advance,

Vivek Kaul

Editor, Vivek Kaul 's Diary 

PS: The petition is on the site

As per latest report, Rajnath Singh, the Home Minister in the BJP government, too, has a political party operating from his home address and through whom he is happily taking donations.

Saturday, December 17, 2016

Cash chaos as Venezuela stuck in currency limbo

Venezuelans lined up today to deposit 100-unit banknotes before they turned worthless, but replacement bills had yet to arrive, increasing the cash chaos in the country with the world’s highest inflation.
Some frustrated customers received expiring 100-bolivar notes when they withdrew money at ATMs, then immediately had to line up again to re-deposit them.
Venezuelans are stuck in currency limbo after President Nicolas Maduro ordered the 100-bolivar note — the largest denomination, currently worth about three US cents — removed from circulation in 72 hours.
The government announced today that Venezuela’s borders with Colombia and Brazil — closed to fight “mafias” allegedly hoarding the notes — will stay shut three more days.
The deadline was supposed to coincide with the launch of a 500-bolivar bill, the first in a new series of banknotes that will eventually be issued in denominations of up to 20,000 bolivars.
But with the new bills yet to arrive in the capital Caracas by midday, people were left facing economic chaos.
“I don’t get the joke,” office worker Yarelis Carrero said. “When you withdraw cash at the ATMs, they give you 100-bolivar bills. And you can’t get the new ones inside the bank, either.”
She woke up early to get rid of her expiring banknotes only to discover that the bills meant to replace them were nowhere to be found.
Venezuelans will now be able to exchange 100-bolivar bills only at one of the central bank’s two headquarters buildings.
Maduro, who has presided over an unraveling of Venezuela’s oil-rich economy, said the 100-bolivar note had to be killed because “mafias” were hoarding it abroad in what he called a US-backed plot to destabilize Venezuela.
In response, he sealed the borders with Colombia and Brazil, where he says much of the hoarding is happening. Now those frontiers will stay shut until Sunday.
That led to pandemonium on the border, as foreigners rushed home and Venezuelans found themselves cut off from precious supplies of food, medicine and basic goods that are in desperately short supply in Venezuela.
Central bank chief Nelson Merentes promised last week that “millions and millions” of new bank notes were on their way.
The new bills — which are being printed abroad — were originally meant to circulate alongside the old ones during a transition period.
But Maduro axed that plan when he issued his decree against the 100-bolivar note on Sunday.
It accounted for 77 percent of the cash in circulation in Venezuela, according to official figures.
Venezuelans had grown used to carrying around huge stacks of them for even the smallest purchases.
Now they are stuck with even bigger piles of 10-, 20- and 50-bolivar notes just as the Christmas shopping season is at its height. Some companies have stopped dealing in cash altogether.

Friday, December 16, 2016

Day of DeMo demons - Factory owners say what Big Business won't

Dec. 15: From murder to disenchantment to skewering questions, seemingly unconnected events in the past 24 hours in places far apart from one another have brought to the fore the unintended consequences of demonetisation in the country.

Key message
Over 100 factory owners in Amritsar have handed over keys of their units to the district administration in a symbolic protest that stood out in sharp contrast with the public pronouncements of support for demonetisation from most of corporate India.

"The problem is very simple. We cannot run our units any more. Let the government do it," said Amit Dalmiya, who runs a textile processing unit in Amritsar
"If Modiji can run the country, he can also run the industry... it is a question of survival and the situation has gone beyond us," Krishna Kumar Sharma, the president of the Amritsar Textile Processor Association, told The Telegraph this evening.
One industrialist who sought anonymity indicated his political choice. Without naming anyone, he said: " Pehli baar to aadmi par bharosa hota hi hai... baad mein pata chalta hai.... (The first time you do trust a man... then realisation dawns). They did not go into demonetisation with full planning."

On Wednesday, the industrialists handed over the keys to the additional deputy commissioner, Tajinderpal Singh Sandhu.

Amritsar is home to around 60 textile processing units on which another 700-800 embroidery, knitting and weaving units are dependent.

"At this moment our units are running at 20 per cent of the optimum capacity.... The labour strength had to be halved because of the prevailing economic situation," said Sharma.
The units have been hit badly because of sudden cancellation of bulk orders since the demonetisation drive started. "If a person manages to withdraw Rs 2,000 from an ATM, he will buy food and not clothes," said an industrialist.
Exchange murder

A contract worker with HDFC Bank was stabbed to death in Gujarat by three people with whom he had allegedly struck a deal to exchange notes.

Rajesh Bhilariya, 27, was called today afternoon to a village in Junagadh where he was allegedly supposed to accept Rs 9 lakh in old notes and hand over new ones, police inspector Ashok Tilva said. Rajesh worked as a " mitra" or "correspondent" (effectively rural agents) of the bank.

Police said Rajesh had reached the spot with his cousin. But the three would-be cash recipients snatched the bag with the new notes and tried to escape. When Rajesh tried to stop them, he was stabbed, the police said.
Bank backlash

An SBI branch and an adjoining ATM kiosk were ransacked in Malda today after hundreds of account holders seeking cash for family weddings, potato cultivation and travel were told each could withdraw no more than Rs 3,000.
The account holders had queued up at the Balupur branch in Ratua, around 50km from Malda, from daybreak. The SBI branch, with 3,500 account holders, is the sole bank in the area.

Saidul Sheikh, who was in the queue, said the bank staff initially offered only Rs 1,000 when depositors demanded the weekly quota of Rs 24,000. The amount was then raised to Rs 2,000 and then Rs 3,000.
The trouble broke out around noon. The bank employees and officers fled.

Mushref Miyan, a trader, said he was becoming increasingly nervous. "My daughter's wedding is on Sunday. The Prime Minister had said we could draw Rs 24,000 each week. I have about Rs 80,000 in my account. But the bank is offering Rs 1,000 and I am really feeling frustrated. The people erupted today," he said.

Subol Pal, a farmer, said he needed Rs 40,000 immediately. "I am not being able to start my potato and vegetable cultivation as I need to invest Rs 40,000. The cash crisis is affecting hundreds of farmers like me," Pal said.
Ankan Paul, the manager of the Balupur SBI branch, said: "We are helpless. We are distributing whatever cash we are being sent. The bank was shut down after the violence."

Arun Kumar Sinha, the SBI regional manager, said that things were expected to normalise after tomorrow.
BJP concern

BJP parliamentarians and party office bearers have told Amit Shah that the government needs to ensure adequate flow of cash in banks to check discontent among the people despite continued support for demonetisation.

"The public mood is still in favour of the government on demonetisation but people are facing hardships due to the shortage of cash. The government has to increase the cash flow to keep the people favourable," one MP from eastern Uttar Pradesh was quoted as having told a meeting on Wednesday evening.

Concerned by the feedback, the BJP leadership had called separate meetings of party MPs and office bearers on Wednesday and Thursday.
Cash leak

The Supreme Court today took note of growing instances of new currency notes being funnelled out of banks and asked the Centre "you are not able to secure it?"
The court also grilled the government on withdrawing exemptions granted to hospitals and pharmacies for accepting the demonetised notes.

The apex court underscored that although the government claimed that it had infused new currency worth Rs 5 lakh crore into the system, the ground reality was that people were not able to get even the promised Rs 24,000 per week.
Responding to questions from a bench of Chief Justice T.S. Thakur and Justices A.M. Khanwilkar and D.Y. Chandrachud, attorney-general Mukul Rohatgi said certain bank officials were diverting the money. "Bank managers had done this fraud.... The Government of India can't sit in every bank and monitor. We are having raids every day."

The submission invited a repartee from Justice Thakur and triggered titters in the courtroom: "So your Rs 5 lakh crore has gone this way. You are not able to secure it?"
When the attorney-general contended that there had been no complaint or protests from the common man on withdrawal of exemptions, Justice Thakur asked: "You expect all people to come here? Please tell us what is your apprehension? What is wrong in exempting government hospitals? How can it be misused in government hospitals?"

Thursday, December 15, 2016

Patanjali fined Rs 11 lakh over misbranding Patanjali had failed quality tests at Rudrapur laboratory

Dehradun: A local court in Haridwar has slapped Ramdev's Patanjali Ayurved's five production units with a fine of Rs 11 lakh for "misbranding and putting up misleading advertisements" of their products.
ADM Lalit Narayan Mishra's court has asked the company to pay the fine within a month.
Patanjali Ayurved was found guilty of misbranding as the products being shown by the company as produced at its own units were in fact manufactured somewhere else, the court said.
A case had been filed in the court against the company in 2012 by the District Food Safety Department after samples of mustard oil, salt, pineapple jam, besan and honey produced by Patanjali had failed quality tests at Rudrapur laboratory.
The products were found to be in violation of sections 52-53 of Food Security norms and section 23.1 (5) of Food safety and Standard (packaging and labelling) regulation.

Saturday, December 10, 2016

The rise and fall of Emperor Modi

You can never take the people for granted, or you will surely be transplanted

November 2017. This is an excerpt from the screenplay of a musical play performed recently at the Kala Natak Academy, inaugurated by Prime Minister LK Advani. It stars Narendra Modi, Arun Jaitley and a chorus of 30 cows. While reading it, please sing it in your head with a grand dramatic voice.
(Silhouette of Narendra Modi sleeping on a bed. Loud snores emanate. At the foot of the bed, a minion sits. Loud footsteps are heard. Arun Jaitley enters the room.)
AJ: Modiji, Modiji!
Chorus of 30 cows: Modiji, Modiji!
Minion, thrusting his arms out towards Jaitley: Do not wake him, Do not shake him. He is sleeping, he spent all of last evening weeping, for this nation, the creation of a Hindu god in a Himalayan location. Do not wake him! Please forsake him!
AJ: He must be woken! My spirit is broken! Forget the nation, I’m out of ration. I have no cash. The supreme leader has obliterated my stash, it’s all trash. He could have let me know at least. Oh, the beast!
(There is a loud grunt, and Modi rises, and then gets out of bed. He is wearing only his Modi kurta.)
Modi: Oh here you are, my little one. I am lohpurush, you’re a brittle one. As for your notes, why don’t you... write on them? As for your notes... a blight on them! You have been rather slow, lately. Don’t you see the plan, Jaitley? Like me, you must learn to see far. What happened to my churidar?
30 cows: Churidar! Churidar!
(Minion scurries off to fetch churidar.)
AJ: You say you want to attack black money. Are you being funny? This won’t hurt black money, truth be told. Hoarders keep their wealth in real estate and gold. In benaami investments and banks that are offshore. Why did you let go of the Panama chors? The IT department found only six per cent of black money is held in cash. So stop talking trash.
30 cows: Talking trash! Talking trash!
(A minion brings a churidar. Two burly bearded bare-chested men wearing harem pants appear and lift Modi by the armpits as he tries to peel on his churidar. Jaitley continues.)
AJ: More than 90 per cent of the cash out there is white! Those who have earned it feel it is their right. Their right to spend as they please, to save as they please. It’s their money, not yours to seize! Six hundred million people have no bank accounts! Three hundred million have no ID, and this is tantamount to theft from the poor, into the pockets of the rich. A reverse Robin Hood displaying a kleptomanic itch.
(Modi has put on his churidar, and the burly bearded bare-chested men in harem pants disappear under the bed. Modi is tying the naada of the churidar. Jaitley continues.)
AJ: Modiji, I have to tell you, this will cost you votes. As much as 86 per cent of the money in use was 500 and 1000 notes. Cash was used in more than 90 per cent of all transactions. This has set off a series of destructive chain reactions. Farmers are screwed, workers are screwed, small businesses are shutting down. A recession is a best-case outcome, the worst is a meltdown. And after all this, you accuse me of not looking far. Modiji, how long does it take you to wear your churidar?
30 cows: Churidar! Churidar!
Modi: Jaitley, you must understand, my churidar is tight. And you’ve missed the point completely, clearly you’re not bright. The poor do not matter: Let their blood splatter, let the economy shatter, ignore the presstitute chatter. I am the ruler of this nation, this is my domain, with a treasury to fill, an army of bhakts to maintain. This move is genius, such a lovely redistribution. The people’s wealth is now the government’s, a perfect solution. I don’t really care about a little collateral damage. If there are riots, well I’m sure, the army will manage. Besides, my PR is quite superlative. I have complete control of the narrative!
30 cows: Narrative! Narrative!
AJ: Modiji, you must remember, India is democratic. Right now the BJP feels much like the Titanic. We’re sinking, sinking, sinking! What on earth were you thinking? Optics has its limits, and no matter what you call it, the narrative won’t work when you hit people on their wallet. It’s clear that all this power has gone to your head. If we don’t get rid of you, this party will be dead!
(Rajnath Singh and Sushma Swaraj walk in, holding a chair on which Advani is sitting.)
Modi: What do you mean? What is this crap? I am the Supreme Leader. I’ll declare an Emergency, and put you all in a feeder. Forget the aam janta, they are all kambakhts. I’ll drown out their voices through my sweatshop of trolling bhakts. The people are an instrument, a way to feed my pride. I don’t give a damn how many poor folks have died.
SS: And that is why, Modiji, you have got to leave. Politicians should serve the people, not rule them till they grieve. You made a big mistake demonetising those notes. Now we have to dethrone you to somehow save our votes.
(The burly bearded bare-chested men in harem pants emerge from under the bed, put a bag around Modi’s head that says ‘Garbage Disposal’ and carry him off. Singh and Swaraj lower the chair, and Jaitley helps Advani on to the bed.)
Advani: I’m so glad to be on top, this is my rightful place. Because of that Modi, I am now a moderate face! I saved his ass once, and that led to my downfall. The moral of the story: The higher you rise, the harder you fall.
30 cows: Moo! Moo!
(This article was published on November 25, 2016)
The above was published in Business Line


PBT is planning to organize a massive public rally in central Kolkata on Thursday (December 29, 2016) demanding expedited justice for the victims of medical negligence and cleansing of the medical councils that have been riddled with corruption. 

Despite frequent reports of death of innocent patients from reckless treatment and wide-spread healthcare corruption appearing in the news on a regular basis, hardly any doctor is found guilty by the medical regulatory authorities. 

Legal proceedings for compensation against the errant doctors are also languishing in the consumer courts for years and decades because large number of consumer complaints against trivial defective commercial products are stacked together with serious cases of death from alleged medical negligence. 

PBT plans to raise these important issues that are crippling the medical system through peaceful public protest rally starting at 1 pm from Esplanade (Y-Channel) on December 29 2016. 

All victims of medical negligence and conscientious citizens are invited to join this public rally to make our voice heard for a better healthcare delivery system in the future. 

PBT president, Dr. Kunal Saha, will also join this public rally coming from USA. 

Please contact PBT head office at 9143650171/9831983670/9836706952 for more information.

Friday, December 9, 2016

Foreign Funding: ADR writes to MHA and ECI, urges them to implement Delhi High Court’s ruling against Congress and BJP on FCRA violation.

New Delhi: Association for Democratic Reforms (ADR)  has written letters (attached) to the Ministry of Home Affairs (MHA) and Election Commission (ECI) urging them to implement and comply with the directions of the Delhi High Court and  take action against two national parties BJP and Congress as ‘contemplated by law’ within a specified period of six months.   
ADR, in its letters has specifically highlighted Para 73 of the Delhi High Court’s order, which states;

“73. For the reasons extensively highlighted in the preceding paragraphs, we have no hesitation in arriving at the view that prima-facie the acts of the respondents inter-se, as highlighted in the present petition, clearly fall foul of the ban imposed under the Foreign Contribution (Regulation) Act, 1976 as the donations accepted by the political parties from Sterlite and Sesa accrue from ‘Foreign Sources’ within the meaning of law.”
The Delhi High Court in its judgment dated 28th March, 2014 had found both Congress and BJP prima facie guilty of accepting foreign funds and violating the provisions of Foreign Contribution (Regulation) Act, 1976.  Against the High Court’s order, Congress and BJP had separately filed Special Leave Petitions (SLPs) in the Supreme Court on 26 June, 2014, and 26 August, 2014 respectively, and consequently the matter became sub judice.  The SLPs in the Supreme Court were “dismissed as withdrawn” on November 29, 2016.
In view of the fact that now the Delhi HC order of March 28, 2014 has attained finality and it has been re-affirmed in a way, it is imperative that ECI, as a constitutional body and MHA as an administering authority under FCRA should act and take action against these two national parties for violating the FCRA within a specified time as directed by the High Court. 
Section 23(1) of the Foreign Contribution (Regulation) Act, 1976 calls for a penal action for the contravention of any provision of the act. The relevant Section reads as follows;

“whoever accepts, or assists any person, political party or organisation in accepting any foreign contribution or any currency from a foreign source, in contravention of any provision of this Act or any rule made thereunder, shall be punished with imprisonment for a term which may extend to five years, or with fine, or with both.”

ECI being the Constitutional authority to conduct free and fair elections in the country, it has the powers to either suspend or withdraw the recognition of a political party under Section 16 (A)(b) of the Election Symbols (Reservation and Allotment) Order, 1968. The relevant Section reads as follows;

“to follow or carry out the lawful directions and instructions of the Commission given from time to time with a view to furthering the conduct of free, fair and peaceful elections or safeguarding the interests of the general public and the electorate in particular, the Commission may, after taking into account all the available facts and circumstances of the case and after giving the party reasonable opportunity of showing cause in relation to the action proposed to be taken against it, either suspend, subject to such terms as the Commission may deem appropriate, or withdraw the recognition of such party as the National Party or, as the case may be, the State Party.”

ADR in its letter, addressed to MHA, has also stated that if “action as contemplated by law” is not taken within a reasonable time, the inescapable conclusion will be that the verdict of the Hon’ble Delhi HC is not being complied with wilfully, and there will be no option but to initiate proceedings for contempt of court against the MHA.

Thanks; Regards

Prof Trilochan Sastry 
IIM Bangalore 
Founder Member,
+91 94483 53285 
Prof Jagdeep Chhokar
IIM Ahmedabad (Retd.)
Founder Member,
+91 99996 20944 
Maj.Gen. Anil Verma (Retd.)
+91 88264 79910, 

Wednesday, December 7, 2016

Demonetisation: The Biggest Failed Economic Experiment in Indian History?

Soon, it will be a month since we heard the term demonetization after a gap of thirty eight years. The intent was to target black money. And to check terrorist funding. So far so good. 

But the planning and execution has certainly left a lot to be desired. As we wrote recently, of the Rs 15.4 trillion of black money in circulation before the move, Rs 15 trillion is likely to return to the banking system. The much-hyped revolution could at last turn out to be much ado about nothing... 

Until you take note of the casualties. 

Namely: money, time, and resources 

Printing new currency...people in queues rather than at work...loss of lives and livelihoods...abandoned projects - a lot has been sacrificed for the failing experiment. 

The biggest blow has been to the rural economy and the small players in the unorganised sector. The informal sector runs mostly on cash and accounts for 48% of India's total output and 80% of employment. 

The GDP growth rate comes next. And we believe that the pain will be worse and more prolonged than predicted. The move could even delay the implementation of GST. Low deposit rates for savers are already a reality. 

One can gauge the government's confidence by the turn the narrative has taken in last one month - from demonetisation to a cashless economy

Parts of India have indeed been rendered cashless... and helpless. And the elephant in the room is political funding that happens mostly in cash and is unaccounted. 

Meanwhile, a new twist emerges... 

Thanks to the latest amnesty scheme, the crooked will be allowed to come clean if they declare their unaccounted income and pay a penalty of 50%...and then keep the other 50%. If they had the sense to invest this unaccounted income in assets, even better. The honest taxpayer is made to look like a fool. 

From threats of tax plus 200% penalty on deposits, Jan dhan account holders who helped convert black money into white for a 'cut 'are now being openly encouraged by Mr Modi (as suggested by his speech in 'Parivartan' rally in Moradabad, Uttar Pradesh). Those who weren't a part of this laundering scheme must be wondering how they can get in on the action. 

No one is asking what happened to the pre-election claims of bringing back black money stashed abroad. Nor is anybody asking what demonetization does to target black money stored not in cash but in assets such as real estate and gold. And how about preventing the creation of black money in the future?

    'It's easier to fool people than to convince them that they have been fooled.' - Mark Twain
Failed execution of demonetization could have long lasting impact on the lives of people and businesses. So far, the economic logic of the initiative has gone for a toss. We could go on counting the troubles. But that will not help you tread through the crisis.
    'Only when the tide goes out do you discover who's been swimming naked.' - Warren Buffett
      The above is from Richa Agarwal of Equitymaster.