Cabinet decision on Black Money Bill

18 Mar 2015 (AIR News Analysis)

Cabinet decision on Black Money Bill

Participants: Pranjuva guha Thakurtha, Economist and Deveshkumar Pandey, The Hindu.

Multi-prong strategy to check parallel economy – salient features?

Undisclosed foreign income & assets (imposition of new tax) bill, 2015 – String the two laws Money laundering Act (2002) and Foreign Exchange management Act (1992). Provide more teeth – to imposed penalty, imprisonment. Important element – 300% penalty and 10 years rigorous imprisonment, any undisclosed income is taxable at 30% plus surcharges;

Window given for the offender – voluntary discloser scheme? Escape prosecution?

Short term window;

to implement international treaties Automatic information exchange including

Proposal to strengthen the Benami transaction Act (in statute book since 1988) – dissuade people from illegally taking money outside India;

Stringent provision? Is it a step back to FERA regime? Whether govt. can bring back the stashed money outside India?

When India moved from FERA to FEMA – is to liberalized regime – to dissuade the people from violating the law – but it was other way around;

What about the countries like Tax haven? Is there any breakthrough?

Multilateral conventions – Tax haven (Low tax or No Tax regime) -80 hard Tax haven (Mauritius, Florida, ) – tax evasion, round tripping, money laundering - This issue need to be checked – it is complex; 90% of the black money generated stays back with in the country;

Instrument of Black money generation like Participatory notes? Whether these issues dealt in the bill?

No the bill is not specific in this regard; two things dealt Benami Act 1988 (framing rules after 25 years) and regulatory authority (SEBI/RBI) to establish audial lift corporate way;

Enforcement directorate are short staffed? Any provision to strengthen these bodies?

Quality of the staff (Adequate strength & Training) and Autonomy (Integrity);

Global financial Integrity – Estimate – India lost $430 Billion (Rs.28 Lac Crore) in the form of illicit outflow – between 2003 -2012;

SIT on Black money – advised for the better coordination of different enforcement bodies – any provision on these lines?

Also refer PRS summary of the proposed bill

http://www.prsindia.org/uploads/media/Black%20Money/Bill%20Summary%20--%20Undisclosed%20Foreign%20Income%20and%20Assets%20(Imposition%20of%20Tax)%20Bill,%202015.pdf

Unseasonal Rainfall & Impact

02 Mar 2015 (AIR News Analysis)

Unseasonal Rainfall & Impact

Participants: JS Sambra, CEO/ National Rainfed Area Authority, and Harveer singh, Editor.

Rainfall beyond certain level affect the quality & quantity of the production.

Westerly disturbances – unseasonal rainfall – in North India – Example: Punjab Haryana Hail strome – affect the standing crops;

It helps for the growth of forest, fodder etc;

Oilseed & pulse production – falls –more import required;

Information flow – communication – compensation to the affected farmers – safety net – insurance – popularizing it among the farmers;

Another safety net – introducing more livestock – diversification of income – tool against weather anomalies;

Two issues of Insurance:

1. Currently, Insurance is given for the Bank. It should focus farmers.

2. Problem in the estimation of loss. More transparency required – participative process;

Natural calamities contingency fund – Govt. should summit memorandum to the state – ** Flood (Home Affairs), Drought (Agri Ministry);

Precaution/Preventive measures:

1. Avoiding water stagnation.

2. Irrigation should be done based on the weather forecast.

16 Mar 2015

Impact of Unseasonal Rainfall on crops

Participants: Dr. JS Sambra, CEO/ National Rainfed Area Authority, and Harveer singh, Editor.

Kharif crop is not good – because of the rain – when the crops or the due for maturity/reap – anomaly due to climate change – industrialization, Anthropogenic activities; Ex: rotten potatoes due to stagnation of rainwater 15-16 days; Vegetable, Mangos affected by the hail storms;

Combined harvesting machine – cannot be worked when the field is waterlogged;

State wise analysis system – Eg. Gujarat Anawari system – satellite assessment must be developed;

Difficulties in the assessing of the damages – unseasonal rainfall, hail storms, high-speed wind; Helplines – to keep the farmers informed about the relieve measures;

Multi-crops, diversification, withstanding crops, livestock cultivation – loss can be prevented/ compensated;

Crop assessment schemes 

RBI Rate cut and impacts

04 Mar 2015 (AIR News Analysis)

Impact of RBI Rate cut on Inflation.

Participants: A K Gupta, Director/ Banker’s Training Institute and Sanjay Jha, Indian Bureau News, ITN News/London.

Key policy Repo Rate cut: 7.75 to 7.5 percent with immediate effect; Cutting Interest rate to boost growth; unexpected cut-down;

Effect on the loan, EMI?

EMI depends on 3 factors- cost of fund, negative impact of SLR/CRR, NPA, on return of the equity and expenses – these factors determine the bank’s Base rate. Interest rate will be reduced only if the rate of deposit is reduced;

Inflation 5.1% (Jan 2015) as measured by the new index (well within the target). How you see it in this context?

Monetary policy framework signed between the RBI & Government – 2 to 3 years down the line – to target the inflation rate around 4% - keeping the inflation in manageable limits;

Liquidity in the market?

Improve the borrowing by the bank much better; Borrowing of bank from RBI is only 1.5%; It will help more liquidity – reduced interest rates – but not to the inflation;

Oil prices, unexpected geopolitical events? In this context?

Inflation targeting vs Focus on the Growth?

Fiscal deficit target of 3% postponed a year (2017-18); coordination between the finance minister and the RBI governor;

Steps for Inflation targeting?

Subsidy cut, Investment Expenditure- Infrastructure development;

06 Mar 2015

RBI ease Home loan

Participants: Dr. Maharaj Kishan Butt, Maharaj Institute of Management studiesand Sanjay Thappar, Economic Journalist;

Govt. announced Housing for all Scheme –

How do you see this Rebate given by the RBI in terms of boosting ‘housing for all’?

Rs. 50 lac has been assigned in the last budget under PSL of the banking;

Reduction in the Repo rate is a good step. (Uplift the demand in the lower economic strata)

Passing on the benefit – RBI first target at the inflation – this would pass on further to increase demand – at present the demand for the residential apartment has be reduced to 35% in the important metros;

Private sector banks vs Public sector banks – role of passing on the benefit to the public/ costumer; How this can be done?

Make in India – demand macroeconomic business environment – easing the business –

Speculation like RBI decrease Key policy rate to further level. Will it happen?

Jan 2016 – depending upon the monsoon – policy rate might be further reduced;

$20 Bn target – investment by FII – Bond market will change with respond to the policy rate & oil pricing;  

Saving policy in the form of Insurance policy – reducing general exemption limits;

Also Note: From “RBI Monetary Policy” ‘https://www.rbi.org.in/scripts/PublicationsView.aspx?id=16216#II2’

Drivers of Inflation: Sugar prices moderated in consonance with global prices. However, prices of protein-rich items (eggs, fish, meat, milk and pulses) exhibited downward rigidity, reflecting structural mismatches between demand and supply.

Crude prices could impact economic activity and inflation in India through several channels: (i) higher real incomes for consumers; (ii) lower input costs, boosting corporate profitability and inducing investment; (iii) lower current account deficit (CAD); and (iv) improved market sentiment. These favourable effects could, however, be offset by weak global demand.

Also refer:

http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/CFS070114R_CF.pdf

http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/PSGRE020315.pdf

SC on sec.66A of IT Act (prevention of offensive content on the internet)

24 Mar 2015 (AIR News Analysis)

Participants: Neraj Aurora, Cyber law Expert and Praful srivatsava, PTI

Supreme court landmark judgment.

In year 2008, IT act amended – Provision Section 66A inserted. It includes 2 parts

1. Publishing of offensive information or information which is grossly offensive or menacing in character.

2. Dealing with false information but impact of creating annoyance, defamation, insult, ill-will.. etc..

Four words, not defined: Grossly offensive, menacing character, annoying, inconvenience (subjected to interpretation – misuse by law enforcement agencies)

Two fold issues in front of the court / Judiciary.

1. Misuse by the law enforcement agencies.

2. Vague provision – unconstitutional in nature – sweeping interpretation – violate Art. 19 of Constitution of India.

Issues of Internet (without safeguard):

1. Anonymity.

2. Illegal/ defamatory content.

3. Hate speech.

4. Obscene materials.

Need of the hour – New provision – balance of interest - freedom of speech & Safeguard/protection from hate speech.

Legal protection against abuse & defamation:

File complaint under Sec. 499 & 500 of IPC – court of law – with evidence / proof;

Technical complexity: Tracing an IP of the perpetrator – under the court process;

Sec 79 of IT Act – grant exemption to the intermediary (ISP/FB/Website/Search Engine/Companies/ also include cyber-cafe) - IT intermediary rules – to make them comply with certain provisions;

Sec 66A of IT Act – expedite the process – to reduce damaging effect – cognizable offence;

Recent issues:

1. Sony Hack case – movie stolen - re-iterates the need for international law;

2. Assam case – obscene videos – server located overseas;

Section 505 of IPC acts – any analogy with sections of IT act – it talks about only the aggravated situation;

Govt. Proposal – Notification – reg. Sec 66A

1. All the violation of Sec 66 – form the part of IT Intermediary rules.

2. Social media websites should publish privacy policy.

3. Social media websites should maintain data for 3-4 months.

Skill development for differently abled person PWD

21 Mar 2015 (AIR News Analysis)

Participants: Mukesh Jain, Joint Secy, Ministry of social justice & empowerment and Interviewer – Surabi agarwal, special correspondent, Business Standard.

Two new schemes launched for the disabled people?

Numbers from the census 2011 – 2.68 crore are disabled – 9.9million people are literate, in working age, unemployed/underemployed;

National Action Plan launched to address these issues; Problems need to be addressed: (1) Low coverage (hardly 1 lakh per year) (2) low rural accessibility (3) low employability (4) uncertainty of the quality (5) no homogeneity; so to create cohesive, coherent, qualitative system; CSR money should be properly channelized for optimum usage;

Steps to be taken to meet the said target?

Sector skill council for PWD (currently 31 council – vertical councils) – now to create horizontal councils; (1) to create synergistic cluster/system; (2) proper monitoring from the ministry;

Deficiencies in the present system?

To open more centre in rural areas; Note: Massive Online Open Courses (MOOC) – with the aide of Digital India – Online training platform;

Connecting industries with the differently abled people?

Industries realize the potential of the PWD; Some Estimate says the productivity of employing PWD increased by 0.5%;

As 13 sectors identified where PWD can get better avenues? Is it so?

No pre-conceived notions.

How about reservation in Private sector?

PWD (1995) Act mandates 3% reservation for the PWD; Private sector yet to be considered;

Occupational Standards?

Job requirement – occupational standards – training required;

Who will develop the portal?

NHFDC (under MOSJE) – National Handicapped Finance Development Corporation- Portal similar to Naukari, Shaadi, Timesjobs…

Fund earmarked for the project?

Rs.100 crore allotted under the national Action plan. Also we have Scheme for implementation of  PWD Act (SIPDA)

Crime against women and issues of Law & Order

Crime against women and issues of Law & Order (07 Mar 2015 AIR News Analysis)

Participants: Amit Kelkar, SC Advocate and Satya Prakash, Legal editor Hindustan times

Nagaland – Angry mob - Demapur jail – Farithkhan (Acquittal of Rape case) – beaten to death; similar incident in Varanasi. What is behind this trend?

Lack of legal literacy among the common – poor understanding of criminology – poor understanding of jurisprudence “law is does not believe in taking revenge – it is for prevention or deterrence – two aims of the legal system” Aims is not to finish the criminal, it is to finish the crime;

Judicial process Vs mob justice? In Other the other hand alleged rapes – 35% increase compared to 2013 level – also other crime against women increased more than 156%. Socio-Economic-Education factor stand reason for such crime rates? What are the other reasons behind it?

Deterrent is not created – because of the severity of the punishment – by the surety of the justice – law will be able to detach grave from the shaft or will be able to differentiate the guilty; only by having surety of punishment; real concept of masculinity – to follow certain principle, not to be lustful, not to seek shortcuts; 

Contradiction in the society – Shakthi/Kali, Saraswathi, Lakshmi – both they never treat their mother, wife or daughter in such manner;

Legal system of India is cheapest – stable system; but it has many scopes for improvement; whole system cannot be contemned – it protect the fundamental and human rights of the society; The defect does not diminish the entire system;

Competency of the judges? Judge population ratio – 13/14 judges per million populations; Insufficiency – judicial pendency?

Untrained/ill-trained police – lack of essential forensic laboratory – training on latest technology;

Are Fast tract courts a solution for Nirbhaya type of cases?

Making the justice deterrent – sensitizing the judges on Gender justice; SC verdict – directed all the states to ensure security of women in all public places;

Police cannot be omnipresent – they have to be augmented, trained;

Nagaland incident could be the catalyst for the change; 

Security concern of Social Activist

Security concern of Social Activist (05 Mar 2015 AIR News Analysis)

Participants: Amod kanth, Social Activist/Former DGP and Anil Anand, Senior Journalist

Raising Social issues – civil right activist commendable work – whistle blower- but also counter- movement or Anti movement also taking place- disguise of public interest – Ex: Gandhian Anna Hazare – Anti corruption movement – threat by NRI from Canada;

Requirement public discourse? How to keep the movement live?

Police – want to stop such social activist being vociferous. Annual programme of NHRC – to tackle problem related to Human rights;  

Change - Transforming the society from the established systems, with new idea, new values?

Opposed by the representative of the old system;

Role of police, establishment, society? Public discourse would be the solution;

Bilateral provision – social media message – threat – across the borders?

Where the message comes from – due to - (1) Reactionary though process related to the group/ political group (2) Individual’s Mind/Thought process (3) connected to somebody.

Cross border- international – so, Interpol to collect information – cross border issues – no legal value – no evidence can be collected; International law & agreement between the two countries – Extradition treaty – Eg. India & Canada;

To collect evidence – Indian court and the Canadian court must be working together – many Human rights issues are associated;

Difficult to investigate or to collect evidence? How difficult it is? Recent issue of “India’s Daughter” documentary by BBC? How Bilateral relationship should be strengthened to make the investigation ease, as the world becoming global village?

Some of the lawyers (BBC documentary) – in the name of defending the convicts – used statement derogatory to women;

Reactionary/ conservation (Vs) forward looking/more tolerant people;

Vested interest – misusing - shape/ direct public opinion – less tolerance (intolerance) – inducing irrational thinking – ‘Catch them young’ – children exploitation;

Intolerance – not democratic – not suitable for democratic society;