Big Fight Erupts between two Govt bodies

by Harish Gupta, National Editor, Lokmat Group

Big Fight Erupts between two Govt bodies

Brings Sale of Sick companies to a Grinding Halt

1200 companies hit 

Harish Gupta

New Delhi, Oct 18

A big fight has broken out between the Enforcement Directorate (ED) and the National Company Law Tribunal bringing the auctioning of sick companies to a grinding halt.

The Enforcement Directorate is firm in implementing the Prevention of Money Laundering Act (PMLA) which stipulates that assets of those involved in money laundering be attached along with the companies they owned. But the Insolvency & Bankruptcy Code (IBC) governing the NCLT and Appellate body are responsible for buying & selling the sick companies numbering nearly 1200.

The tussle brought the light the conflict between the ED under the Finance Ministry and the IBC under the Corporate Ministry with the ED attaching assets of sick Bhushan Power & Steel Ltd (BPSL) which had been purchased by the JSW Steel. The JSW was about to pay Rs 19700 crores for the debt-ridden BPSL. But it withheld the payment after the ED attached its assets. The ED's action, in fact, brought the entire process to a grinding halt at the National Company Law Tribunal (NCLT) which is supervising the sale/purchase of all sick companies in India. As on March 31, 2019, there were 1143 companies which are undergoing resolution process and its rising by the day.

Now the buyers are insisting that after payment of the bid amount, the companies should be free from all past liabilities including the criminal cases. The ED attached assets worth Rs 4000 crores of the Bhushan Power & Steel. The ED has refused to relent and so far the government has not intervened either. The National Company Law Appellate Tribunal (NCLAT) has directed the ED that assets be released forthwith and even asked the JSW Steel not to make the payment until the assets are released. But the ED is not bound by the NCLAT order saying it is governed by the PMLA. The government will have to amend the act if it wants to speed up the sale/purchase of sick companies.

As if this was not enough, ED has gone in appeal to attach the assets of Tech Mahindra to the tune of Rs 822 crores in a fraud case relating to Satyam Computers Services which was acquired by Tech Mahindra in 2009. The matter is sub-judice but giving nightmares to the buyer.

Ends

DRI & ED scanner on large overseas remittances

by Harish Gupta, National Editor, Lokmat Group

DRI & ED scanner on large overseas remittances

Harish Gupta

New Delhi, Sep 12

The government is considering tightening of the Liberalised Remittance Scheme (LRS) and other legitimate routes for remitting money abroad. The government's re-thinking came after the probe agencies brought to the notice massive outflow of funds abroad during the past couple of years through legitimate routes. The Probe agencies, in a meeting last week with the Ministry of Finance and the RBI had raised concern over the unusual trend. 

The Directorate of Revenue Intelligence (DRI) and Enforcement Directorate  have detected outflow of money abroad in large amount to four countries namely; Thailand, Dubai, Singapore and Hong Kong

A number of foreign exchange dealers have come under the scanner for alleged misuse of Liberalised Remittances Scheme (LRS) of the Reserve Bank of India (RBI). An individual is entitle to remit $250000 abroad without any question being asked by the banks. But it was noticed by the agencies that huge chunks in tranche have been remitted to these four countries only. 

The ED & DRI have detected misuse of legal routes for remittance of the funds in foreign exchange which is considered  laundering of  money. Estimates suggest these countries have received Indian money of about Rs 20,000-30,000 crore in 2018 alone. Of this, Thailand alone has received Rs. 5000 crore.  

In order to avoid regulatory attention, Forex dealers often create fake invoices under the LRS thereby blurring the identity of many accounts a source pointed out. “we have issued notices wherever we have come across such irregularities “ the official quoted earlier said.

According to RBI guidelines, resident Indians are allowed to remit an aggregate sum of Rs 250000 per financial year for any permissible current account or capital account transaction under the LRS without any approval from central bank. However, the RBI routinely seeks clarification wherever technical lapses are detected, Penalties are also imposed.The ED has issued many notices under the Prevention of Money Laundering Act (PMLA) for unaccounted wealth parked abroad, after global leaks including he HSBC Swiss list and Panama Papers showing names of Indians. 

Fly on the Wall : Rahul's Anti-Modi front taking Shape

by Harish Gupta, National Editor, Lokmat Group

Rahul's Anti-Modi front taking Shape

Slowly but surely, the anti-Modi front conceived by Congress president Rahul Gandhi is taking shape. It is also clearly emerging that the NCP leader Sharad Pawar is emerging as a key player in the game. Gone are the days when Prime Minister Narendra Modi and Sharad Pawar used to share pleasant moments in private and used to express bon-homie even publicly. Times have changed particularly after Congress president Rahul Gandhi signaled that he was not in the race for the Prime Minister's post in 2019. Though critics poked fun at his leadership qualities when Rahul Gandhi had declared a few months ago that the Congress is not targeting to win the 2019 Lok Sabha polls on its own. Later, the young scion of the Gandhi family told Sharad Pawar during one of his meetings that he was not a claimant for the post of the Prime Minister though the Congress would be the single largest party in the Opposition. Pawar was surprised at his candid statement but heard him patiently. Rahul Gandhi went to the extent of saying that his party was not a claimant for the post of the Prime Minister in 2019 and would support any one who can carry the coalition successfully. The credibility of the coalition partners is of prime importance as past experiments had failed in 1967, 1977, 1989, 1996 and even in 1998. Therefore, terms and conditions of the alliance should be in black & white and nothing be kept in the abeyance. Rahul Gandhi also signaled that the Congress Party would join the government to give it a stability, if the coalition wins the 2019 polls. Rahul's views are in departure from the past when the Congress supported governments (Charan Singh, Chandra Shekhar, H D Deve Gowda & I K Gujral) from outside. Rahul felt one of the reasons of these governments failing was grave trust deficit and Congress remaining outside the coalitions.

Sharad Pawar to stitch alliances

Rahul Gandhi is understood to have told Sharad Pawar during these meetings that being the senior most leader among the Opposition parties, he alone can bring regional and like-minded parties together under one umbrella. Realizing that he cannot bring the regional and other parties together, Rahul Gandhi wanted Pawar to play the leadership role. Though there was no finality as to who will lead the coalition, it is an unwritten understanding that Pawar would be the leader provided other regional parties like Mamata Banerjee (TMC), Mayawati (BSP), Akhilesh Yadav (SP), Lalu Prasad Yadav (RJD), M K Stalin (DMK), CPM, TDP & others also accept him. These regional parties may not have alliance with the Congress in the Lok Sabha polls in their respective states. But they will try to avoid direct confrontation with the Congress wherever feasible. The Congress-NCP have already finalised alliance in Maharashtra for the Lok Sabha and even Assembly polls. Similarly, it has also been agreed that SP-BSP will contest Lok Sabha seats together and both will spare handful of seats for the Congress and the RLD. But BSP has made it clear that it will not enter into alliance with Congress in other states. Pawar is negotiating with these parties to resolve differences as these will impact the credibility of the alliance. Therefore, all these talks are going on in complete secrecy with no one having a clue of the details. However, Fly learns that seat-sharing talks are proceeding well.

Modi Plans Big Radio Outreach

With just one year to go for the 2019 Lok Sabha polls, PM Modi has decided to kick-start a massive information sharing platform for the under-informed in India's underbelly through a countrywide network of community radio stations (CRS). Taking a queue from Modi's “Man Ki Baat” radio show, the Information & Broadcasting ministry is running amok to promote setting up of the community radios and galvanize the government radio outreach to Modi's programs. The government admits that 65 per cent of India's 1.3 billion people, who live in the villages, have no access to any communication device except radio. Radio is still the most popular mode of information sharing in the remotest Indian villages and we're planning to take community radio to a next level - tech-enabled, but purely local in content and a very interactive platform.

There are currently 206 community radio stations in the country, but mostly confined to a single objective driven primarily by NGOs, educational institutions and social activists. About 239 CRS applications are in process and nearly 506 permissions for setting of new CRS have been granted. The government is targeting 4000 radio stations which can be funded through CSR initiative.

NBCC to handle seized properties

Instead of setting up a separate authority to handle the task of maintaining, managing and earning revenue from immovable properties attached in money laundering cases, the Modi government may entrust the task to the National Building Construction Corporation (NBCC). The officials in the Income Tax, ED, CBI and other agencies had been struggling to find ways to better manage properties seized, frozen or confiscated under the Prevention of Money Laundering Act (PMLA), including those belonging to fugitive businessmen Vijay Mallya and Nirav Modi. Finally, Finance Secretary Hasmukh Adhia who held detailed parleys with other officials decided that NBCC will handle the affairs. Within days, Chairman-cum-Managing Director Anoop Kumar Mittal who was under the scanner, was granted the rights for maintenance, renting and auctioning of such properties. As of now, the ED manages the properties confiscated by it but does not have experience. The government may now consider amending necessary laws to ensure better upkeep of confiscated properties, they said.

Parasaran refused to toe Rahul line

K Parasaran, former Attorney-General of India who was nominated to the Rajya sabha by the UPA government, was one of the experts whom the Vice President, M Venkaiah Naidu consulted on the Motion to Impeach Chief Justice of India Dipak Mishra. It transpires that Parasaran held the view that the motion does not have any leg to stand on and wrong in law and without any basis. Though it was Congress president Rahul Gandhi who commandeered the party and others to go ahead with the motion and even made Abhishek Manu Singhvi to sign it, insiders were surprised that the UPA nominee did not heed to the advise. Rather, he gave a different opinion to Naidu. Rahul Gandhi is seething with anger with the party oldies who appointed Pasarasan to Rajya Sabha.

Fly on the Wall : Why Govt. going after Chidambarams

by Harish Gupta, National Editor, Lokmat Group

Why Govt. going after Chidambarams 

It is no secret that the entire government machinery is going after P Chidambaram (PC)  and his son Karti in a big way. The INX Media case against Karti was of 2006-08 vintage when PC was the Finance Minister during his first stint.

Fly on the wall : The 10-day silence in Rs 11400 crores Scam ?

by Harish Gupta, National Editor, Lokmat Group

The 10-day silence in Rs 11400 crores LoU Scam ?

It is no secret that the diamond business of Mama-Bhanja (Nirav Modi and Mehul Choksi) came crashing on January 16 this year when an executive of Nirav Modi went to the Brandy branch of the PNB to clear the LoU. The cat was out of the bag as the handling deputy manager alerted his seniors of something fishy. All hell broke within hours and the top management got in touch with Nirav Modi who was holidaying in New York. His top executives in India including CFO Ambani kept telling the PNB that monies are being arranged. The shaken PNB management kept negotiated fo full ten days and tried hard to persuade Choksi and Modi to to arrange for collateral and matching securities. Finally, the Managing Director Sunil Mehta told the Banking Secretary in the Finance Ministry who conveyed to Finance secretary Hasmukh Adhia who in turn conveyed the biggest scam under the NDA to the Finance Minister. It transpires that Adhia informed the PMO and Jaitley too briefed the PM on the issue separately. Finally, the PNB decided to lodge a formal CBI complaint on January 28 of cheating relating to Rs 280 crores. The CBI started looking into the matter and three days later, it registered the case on January 31. The second complaint amounting to Rs 11400 crores was reported on February 13.

Value of Nirav Modi properties is Just Rs 800 Cr

The Enforcement Directorate bragged within two days of raids on Nirav Modi's establishments across the country that value of seized assets including flats and properties is Rs 5700 crores. However, the valuers and assessors of properties, jewellery and diamonds are still struggling to assess the actual value of seized assets. An informed source in the ED said the total value of immovable assets of Nirav Modi is around RS 800 crores only. The ED is yet to get hold of the actual ownership documents of all the properties if they had not already mortgaged to banks or otherwise. The ED's legal department is still struggling to discover if the properties are free from any collateral for picking up loans. What surprised industry veterans is that speed with which ED assessed the value of diamonds which is an extremely tedious process. In fact, the whole scam of Nirav Modi was to import rough diamonds and export them or sell them in Indian market at a very high price after cutting and polishing them due to his designing skills and high brand value. So far, the ED had conducted searches at over 200 premises of Modi as well as Gitanjali Gems and seized diamonds, gold and precious stones worth Rs 5700 crores based on the “tag value” or the “book Value” of the diamonds and jewelery. The book value cannot be true estimate of the goods recovered. The tag value is highly inflated. In fact, when the banks sanction loans against imported stock of rough diamonds to jewelers, there is no way to assess the true value because most valuers have no knowledge themselves or they look the other way. This is used for over-invoicing and under invoicing. The Income Tax department had also attached and froze 103 bank accounts and 40 properties of the Modi group of firms, but the value of this attachment has not been given by the IT so far.

Having declared the true value of stocks and properties as Rs 5700 crores, the ED is now in a tight spot. It transpires that the value of diamonds, gold & jewelery is in the range of Rs 1400-1500 crores. One of the reasons for this is that Nirav Modi used to import cheap quality rough diamonds and divert them after value additional in the domestic market at a very high price rather than exporting them.

Nirav Modi’s Hyderabad SEZ scam

The ED  detected that Nirav Modi's Hyderabad-based SEZ was overvalued in the books of Punjab National Bank (PNB)  huge variation in actual inventory and their book value. The difference was as huge as Rs 3,500 crore. The SEZ on an area of 250 acres was sanctioned by the UPA government and inaugurated by then Chief Minister Y.S. Rajasekhara Reddy in 2005 and then it was named as Rajiv Gems Park. In 2014, the name was changed to Gitanjali Gems Park which houses all the five firms owned by Nirav Modi and his associates.  The raids at five gems and jewellery units located at a hardware park at Raviryala village in Maheswaram mandal of Ranga Reddy district, about 30 km from the city. The actual value of 100 odd boxes and containers at the Gitanjali Gems Park, was Rs 300 crore, but the book value in the group’s computers is mentioned around Rs 3,800 crore. This SEZ is the biggest processing unit of the Nirav group’s gems and jewellery. The group used to import raw and uncut stones from Hong Kong and other places and processed them at Surat, Pune and other places in Gujarat and exported them to UAE, EU and other destinations. Shockingly, the there were only 400 employees at the SEZ as against the 1,850 shown in the records. The EPF was deposited in the names of 1850 employees. Perhaps to jack up job data and siphon money as well.

A Cultural Shift at AICC under Rahul Gandhi

We had already reported in these columns that Congress President Rahul Gandhi will not have a Political Secretary like his mother had for 20 long years. It had also been reported that he will hold Public Darbars at the AICC to meet with the common man and interact with Congress workers. It now transpires that Rahul Gandhi is undertaking a big shift in party's policy. His latest Mantra is to buy peace in his own party first and tell party leaders in states to close ranks. Before stepping up his campaign to talk to like-minded parties, he wants that Congress should regain its lost glory. Gone are the days when he was not available and had virtually become incommunicado. He never responded to SMSes, didn't care for the waiting guests and canceled appointments at will. Now he is playing on the front foot and inviting all those who left the party. He has been telling all PCC chiefs that its their responsibility to keep flocks together and spending hours and hours with leaders of each state. The way Shiela Dixit and Ajay Maken buried the hatchet and Arvind Singh Lovely returned to the party fold in Delhi is an indication of this cultural shift. He is also giving free hand to the Chief Ministers with a clear message that they will have to keep the flocks together. The target is May 2019. He told Karnataka CM Sidhharamaiah to do whatever he likes. But he shouldn't ignore other leaders. His focus is Maharashtra, Rajasthan, Madhya Pradesh, Chhattisgarh, Haryana, Himachal, Punjab and even Bihar where the Congress can stage a big come back in 2019 to take on Modi.

Fly on the Wall : Baffling Disappearance of scammers

by Harish Gupta, National Editor, Lokmat Group

Fly on the Wall : 

Baffling Disappearance of scammers

The Sterling Biotech bribery allegations case in the Rs 5000 crores scam in which the name of CBI's special director Rakesh Asthana figured took an interesting turn; that the Enforcement Directorate is yet to seek the custody of the Gujrat-based promoters Nitin Sandesara and Chetan Sandesara. The ED went to town when it arrested Delhi businessman Gagan Dhawan recently who was instrumental in helping the company to manage its affairs with Central government agencies and banks. But the ED did not seek their non-bailable warrants against the Gujrat-based promoters. In fact, the scam first surfaced in 2011 and neither the UPA and nor NDA did anything worthwhile in this case for six years. It gained prominence only when proposal to promote Rakesh Asthana within the CBI to make him number two was brought before the Central Vigilance Commission. The CBI director Alok Varma opposed Asthana's promotion and was overruled by the CVC and news was leaked along with the entire case. Now it transpires that the promoters of the Sterling Biotech have vanished and not available to ED. The other directors of the company are around but the promoter director Sandesaras have vanished. No doubt, the ED has caught hold of the company CA who used to write the diary after making payments to officials. He has confessed that he made the payments. But unless the promoters are arrested and confess the same, nothing can be done. The ED is keeping its fingers crossed as no one has a clue where have they vanished, are they in India or abroad like many others.

Kovind's GCTOC test

President Ram Nath Kovind will face his first acid test when the controversial Gujrat Control of Terrorism and Orgnaised Crime bill (GCTOC) will land on his table soon. The GCTOC has been hanging fire for the past 14 years as three of Kovind's predecessors; APJ Abdul Kalam, Pratibha Patil and Pranab Mukherjee refused to sign. The Bill empowers the police to tap phones and use it as evidence in courts. It was conceived by Modi when he was CM in 2003 and pushing for its passage since then. In fact, he was very hopeful that Pranab Mukherjee will clear it. But he too declined to clear it in its present form. Now certain provisions are being re-worked. The bill is on the pattern of Maharashtra's MOCOCA which gives enormous powers to the state police. As per norms, the Union Home Secretary has to be kept in the loop before tapping telephones. The Gujrat police wants immunity to the state for any wrong doing in public interest. The bill will be on Kovind's table after the Assembly polls.

"Bichhre Sabhi Bari Bari", Lalu crying

Ever since his most trusted lieutenant and four-term Rajya Sabha MP Prem Chand Gupta deserted Lalu Prasad Yadav, the RJD supremo is in great agony and pain. He has been calling Prem Gupta repeatedly on his mobile and home numbers and waiting to meet him for long. But the former Corporate Affairs Minister in the Manmohan Singh government has not returned the call. Lalu's two former trusted officers Mahajan and Srivastava have also chosen to keep a safe distance from the former Railway Minister. Lalu has seen his worst as nobody calls on him these days and he is left with no monies. He is tapping all his former corporate friends and nobody comes to him. They are either not taking his call or not returning call either. Both his sons, wife, daughter Misa Bharti, her husband and other close relatives are under the ED/CBI scanner. Their bank accounts have either been frozen and confiscated. It is becoming clear that after the Gujrat polls, they will face a big music. But what Lalu can't comprehend is that his most trusted person Gupta stopped visiting him. It is learnt that ever since Gupta's wife Sarla Gupta was slapped with a PMLA case, Gupta is trying hard to curry favours from the Modi government. He is repoted to have met Finance Minister Arun Jaitley twice. What transpired during these meetings is anybody's guess. Lalu cried when an old friend called him up and said, “bichhre sabhi bari bari."

Amit Katyal goes missing too !

Heard of Amit Katyal ! He was a small time businessman who came close to Lalu and became big and fixed deals when Lalu was CM Bihar or Railway Minister. The ED has unearthed now that the New Friends Colony bungalow in the posh South Delhi area was virtually gifted by Amit Katyal virtually free to Lalu's daughter Misa Bharti and other family members through web of shell companies. The bungalow is worth Rs 30 crores though ED claims its more than Rs 100 crores. The ED has sealed the property and now fixing nuts & bolts. But it has been caught in a jam. Why ? Amit Katyal is not traceable. He is reportedly run away to Dubai. Though evidence has surfaced when ED detained Bharti's Chartered Accountant (CA) Rakesh Agrawal who started singing. Agrawal was arrested under PMLA for allegedly being instrumental in providing accommodation entries (illegal funds) to launder the money of businessmen brothers - Virendra Jain and Surendra Jain. But the prime person Amit Katyal has gone missing.

Lalu goes to astrologers

Lalu is now completely banking on his star for his fortunes. He has turned to the astrologers and godmen completely. Though he used to believe in astrology and star power. But he remained a die-hard political bird. However, his dependence on astrologers has gone up many folds with the appointment of Shankar Charan Tripathi, an astrologer, as party's national spokesperson.

Fly on the Wall : Mayawati as PM candidate ?

by Harish Gupta, National Editor, Lokmat Group

Mayawati as PM candidate ?

Mayawati's frontal attack on the BJP alleging that it is hatching a conspiring to eliminate her is the first direct hint of her joining ranks with other Opposition parties during the 2019 Lok Sabha polls. The BSP has mostly kept away from the 17-parties Opposition parties' conclaves. She was quiet for some time and some attributed this silence to Enforcement Directorate (ED) going after her brother Anand in the Rs 1200 crores money laundering case. With Mayawati blasting the Modi government is the first signal of Opposition unity taking a positive turn. It transpires that Rahul Gandhi is sending out signals that he is willing to do anything to dislodge Modi. Mayawati thinks she can play a role at the national level. Akhilesh Yadav is working out a barter deal with Mayawati quietly under which he will support her for the PM's post while she will back him for the CM's post. Lalu Yadav is also ready for Mayawati. The BSP has following amongst the Dalits outside UP in several North Indian states. One may hear more news on this front sooner than expected. West Bengal Chief Minister Mamata Banerjee has also been nursing the Prime Ministerial ambitions. With Mayawati throwing her hat in the ring, one will have to watch. 

Hooda may be in the dock, thanks to CBI

After M L Tayal, its the turn of another top official related to former Haryana Chief Minister Bhupinder Singh Hooda to face the music. The CBI is now tightening its grip around Chhatar Singh who is now a member of the UPSC. He was chief administrator of HUDA and principal secretary to Hooda after Tayal retired and facing CBI cases for corruption. The case against Chhatar Singh is strong and may put Hooda in serious trouble. The Modi government helped Hooda by not charging him under the PMLA in the National Herald case. But the case against these top aides of Hooda is so strong that the CBI is unable to dilute them. It is learnt that Chhatar singh may even be asked to resign from the UPSC. Hooda had ensured that Chhatar Singh is appointed member UPSC during the UPA regime after retirement.

Rajnath not consulted on NIA's new chief

When Y C Modi was appointed was appointed as the new chief of the NIA, Union Home Minister Rajnath Singh was in the dark until the file landed on his desk from the PMO. Normally, the file to fill vacancies with regard to departments and police organisations directly under the Ministry of Home Affairs are sent to the Cabinet Secretary by the Home Minister. The NIA is directly under the MHA and its Chief Sharad Kumar was to retire on October 30. Normally, announcements with regard to such postings are done 15-20 days prior. But in this case, the PMO called up the Home Secretary Rajiv Gauba and asked him to send the proposal which he did without losing time. Gauba was also asked to send the name for the successor of SSB Chief also. But before Gauba could recover, the file came back in no time clearing the name of Y C Modi. Rajnath Singh who is also a member of the Cabinet Committee for Appointment (ACC), was taken aback when the file was put up to him for information and subsequent action.

Scared BJP delinks Gurdaspur LS Bye-poll with others

The BJP has de-linked the Gurdaspur Lok Sabha byelection with that of Gorakhpur and Phulpur. Though Yogi Adityanath had quit the Gorakhpur Lok Sabha seat and Keshav Prasad Maurya had quit the Phulpur Lok Sabha seat on August 6 itself, the Election Commission didn't hold the LS polls in these constituencies. When asked, a senior Election Commission official said that byelections are to be held only on the recommendation of the state government. Since the Punjab Government recommended the holding of bypoll in Gurdaspur and six months mandatory period was also expiring, we are holding the same. But in the case of UP LS seat, there is time. It is, however, up to the state government to take a call when it would like to hold. The state government indicated that it will contemplate after the festival season. It is said that the BJP doesn't want to test its popularity in UP at this juncture and delaying bye-polls. There are two vacancies in Rajasthan (Alwar & Ajmer) and one in Telangana.

Kejriwal Went to Igatpuri, lessons to keep quiet

Delhi Chief Minister Arvind Kejriwal quietly went into silent mode even after winning the Bawana Assembly seat in a tough byelection. This was a surprise to all in the Capital. He did not react when BJP was routed in the Delhi University Students Union polls. It now transpires that he opted to go to Igatpuri in Nashik and stayed at the Vipaasana Centre for ten days. Though he had been going to Bengaluru for his throat treatment and practice silence, habits die hard. He is back on twitter after ten days and roar in Gujrat shortly.

Fly on the wall : Even Padma Awards linked with Aadhaar

by Harish Gupta, National Editor, Lokmat Group

Even Padma Awards linked with Aadhaar

Prime Minister Modi's liking for Aadhaar is setting a new milestone with the each passing day. The Cabinet Secretary P K Sinha who headed the Padma awards committee directed that all nominations for 2018 must be linked to Aadhaar. It has been decided that all nominations /recommendations for Padma Awards should be sent online only on the Padma portal designed specially by Ministry of Home Affairs. Anybody contemplating to recommend a person's name for these awards, must have Aadhaar card and the person who recommends first obtain an OTP number and feeds the OTP in the system and then alone he or she can make a recommendation. Cabinet Ministers, Governors and those holding key political posts have been signaled they shouldn't make recommendations in a routine manner. The Lieutenant Governors of Union Territories have been told to route recommendations through state governments. This was a signal to Pudducherry Governor Kiran Bedi that the mandate is for an elected government.

How Rudy was shown the door

“Fly” learnt an interesting tail how Skill Development Minister Rajiv Pratap Rudy's resignation went through the motions days before the major Cabinet rejig on September 3. Rudy was traveling when summoned by Shah on September 1. It is no secret that Shah calls the shot these days and scond in command; be it party or the government. Shah was sitting with General Secretary Ram Lal when Rudy was called inside the room. Without mincing words, Shah told Rudy, “The PM wants your resignation.” Rudy knew it was coming. Yet he developed the courage to ask, “When do I resign, Sir?” Shah shot back without blinking, “Right now.” Rudy's next raised eyebrows, “Shall I give it to you sir or to the PM?” Now Rudy got another shocker: No, you give it to Ram Lalji.” Rudy recovered and asked politely, “Shall I write the resignation here sir ?” Shah said, “No, you write in the ante room. Ram Lalji will collect.” Rudy handed over the letter to Ram Lal who emerged after a long time.

Nirmala at Number 26 in pecking order !

Nirmala Sitharaman may have jolted the nation all when PM Modi promoted her as Defence Minister. She became a key member of the Cabinet Committee on Security (CCS) too in her capacity as Defence Minister. But if one examines the official website of the government listing names and portfolios of Council of Ministers, Nirmala Sitharaman's name figures at number 26. Mukhtar Abbas Naqvi is the only Cabinet Minister who figures below her at number 27. All Cabinet Ministers including Smriti Irani, Piyush Goyal, Dharmendra Pradhan, Maneka Gandhi are ranked upward in the serial. Efforts to elicit response didn't succeed. But sources in the BJP said that its the seniority in the party that matters most and now what you are in the government. She is the youngest member to join the BJP. Then why Mukhtar Abbas Naqvi listed below her ? The Fly didn't get a response. Some consolation !

Ex-CBI Director counting his days

Two former CBI directors – Ranjit Sinha and A P Singh – are facing tough times. While Sinha's case is being monitored by the Supreme Court directly after M L Sharma headed SIT submitted its report. But A P Singh seem to be counting his days as Enforcement Directorate (ED) has gathered enough evidence to book him in the money laundering case. His alleged accomplice meat exporter Moin Qureshi is in the ED custody and payment of Rs 1.75 crores to Qureshi to help a Bengaluru-based person in a CBI case, has sealed the fate. The BBM messages on mobile phones exchanged between Qureshi and Singh and other evidence have exposed the scam. The days seem to be numbered and it may happen sooner than expected. Singh was made to quit prematurely by the government from the UPSC and now his arrest is matter of days.

The turn of the nephews now

In a country of dynasties, the unmarried leaders can claim to be free from any such pressure. But not any more. It now transpires that BSP supremo Mayawati may launch her nephew Aakash shortly in politics. Since her brother Anand is involved in some cases with ED and IT and is a low profile person, Mayawati wants her legacy to be transferred to Aakash who has completed management studies from London. Similarly, Navin Patnaik may promote Arun Patnaik, son of his elder brother Prem Patnaik. Navin Patnaik sounded his sister Geeta Mehta. But she opted out and returned to the USA. Navin is now old and even sick as well. West Bengal Chief Minister Mamata Banerjee is already replying heavily on her nephew Abhishek Banerjee who is a Lok Sabha MP.

Ravi Shankar Prasad interview of the week

by Harish Gupta, National Editor, Lokmat Group

Interview of the Week with Ravi Shankar Prasad, Union Law & IT Minister  

Law is taking its genuine course in probes against the corrupt

We can’t look the other way in corruption cases

India is free from cyber attacks, our systems are in place

Digital payment charges are being looked into

By Harish Gupta

Lokmat: Where do you stand on Triple Talaq now that the SC has heard it ?

R S Prasad: I will not make any comment now that the SC has completed hearing on its validity. But we have stated our views very clearly. Its not an issue related to any religion or community. It relates to gender justice, gender dignity, gender equality. After nearly 70 years of India`s Independence, the issue of right to live with dignity has been raised by a big segment of country. Our view is clear; It is unconstitutional and must go.

Lokmat: What is the alternate machination if the SC strikes it down?

R S Prasad: We will have to decide after the court judgment.

Lokmat: It is said that you may come out with Muslim Marriage Act?

R S Prasad: All these things are going on. I do not wish to make any comment. But surely the government is open to have a fair mechanism if it is needed.

Lokmat: But you have doing this lip service. Your party has done nothing for Muslims in terms of giving them tickets or positions of eminence ?

R S Prasad: This concern for dignity of women is not for Muslims. What is BETI BACHALO BETI PADHAO, What is Sukanya Samridhi Yojna which I am handling as postal department minister. Why is out of almost 7 Crores transactions in MUDRA 2/3 are woman. Of the nearly 40 lakh IT employees nearly 1/3 are women.

Lokmat: I was talking about giving them political recognition by your party?

R S Prasad:  May be you have a case that we ought to give them more tickets. But there I have differences and I am happy that you asked this question. But other parties symbolism ends by giving them tickets. The real issue is of denial of empowerment of the Muslim women. These parties maintain silence when it comes to their empowerment. 

Lokmat: So you are empowering Muslim women?

R S Prasad: Obviously. Now their voice is heard. Rajiv Gandhi ultimately surrendered despite having a massive majority in the Shah Bano`s case. But the Muslim women in India have got a strong leader in Modi who stands by them in their pain and agony.

Lokmat: You are needling your political opponents one by one by using state agencies in every state and also at the Centre?

R S Prasad: Did we tell Lalu Prasad`s sons to have big land in Delhi and Patna ? Did we advise his daughter to have huge farm houses through means which are questionable?

Lokmat: You have lodged cases against Mayawati’s Brother, congress leaders in Karnataka, Himachal, Haryana and other states ?

R S Prasad: Has any one been chased without any evidence? If there is a case against a Karnataka Minister and crores of rupees are found,  you want Income Tax dept to remain quite? If Mayawati’s brother`s issue is discovered by agencies, you mean to say they should look the other way.

 Lokmat: So you are saying that your CBI, ED, DRI, IT are not going after the opposition parties.

R S Prasad: Your allegation is incorrect that’s what I can say.

Lokmat: All kinds of allegations and probes are being made against Arvind Kejriwal. But why have failed to chargesheet him?

R S Prasad: We do not interfere in the work of any of these agencies.  The law is taking its genuine course without any pressure and without resorting to any manipulation.

Lokmat: You mean the whole lot of Opposition is corrupt?

R S Prasad: There are court rulings in cases where Income Tax is probing cases against high & mighty people, you know. Now they are forming grand alliance. Its nothing but the congregation of the corrupt.

Lokmat: You are selective in acting against political class.In Maharashtra you bitterly campaigned against corruption of NCP leaders like  Ajit Pawar. But did nothing against him ?

R S Prasad: I do not have the facts of the case presently. But the legal process is on against all of  them.

Lokmat: Cyber security is one of the biggest issues and you are handling it……..

R S Prasad: Digital India is changing the face of India now. Two Crore people are on BHIM app for digital payments and more than 20 crore transactions have taken place by linking 27 crore Jan Dhan account with mobile and AADHAR. We have saved more than Rs  50000 crores by directly transferring the monies into their accounts eliminating the middlemen.

Lokmat: But why the banks are still charging higher for digital payments? It’s a great concern?

R S Prasad: There is no charge on BHIM app. The AADHAR PAY which the PM had launched, there is no charge. For other UPI apps, the cost is zero. 

Lokmat: But banks are charging more for digital payments while cash is free of charge?

R S Prasad: Its very low and we are already looking into this issue.

Lokmat: And what about the cyber attacks & security?

R S Prasad: India, fortunately, is free today except a few isolated incidents in AP and in Kerala.

Lokmat: May be India was not targeted by hackers?

R S Prasad: No, not at all. From March-April we have taken enough steps to make our systems secure because we were planning to go digital in a big way.

Lokmat: You mean to say that you had advance information about these attacks?

R S Prasad: All I can say is that we took steps to tighten digital and cyber security systems. We installed PACT system. We advised all the banks and govt. departments to put strong systems in place.

Lokmat: Controversies with regard to Aadhaar refuse to die down. P Chidambram says it was conceived for Direct Benefit Transfer Scheme and was optional?

R S Prasad: The problem of Chidambram is that he is yet to reconcile that he is no more in power. We are doing what they didn’t have the courage to do. We laid Optical fiber network for 2.5 lakh gram panchayats today while they connected less than 100 villages.  We are not making it mandatory.... section 7 says no one shall be denied the right of benefit but you must alternatively come on the AADHAAR system. Who is unhappy? The Poor ? Some people are unhappy because there are no middlemen. I am surprised at Chidambaram’ statements.

Lokmat: So the sinking feeling that Chidambram is having and expressing through his articles is only for him and his party?

R S Prasad: It is completely personal….. why it is so… I will not go into those details. The whole country knows why he is having this sinking feeling. For the Congress, in-spite of getting 44 seats...  in-spite of reduced to single digit in UP... in-spite of a washout in one election after the other, the party is unwilling to learn lessons. It is seeking space in only editorial pages.... good luck to them.

Modi Govt. struggling to slap PMLA against Modi

by Harish Gupta, National Editor, Lokmat Group

Special report

The Modi government is struggling to invoke Prevention of Money Laundering Act (PMLA) against ex-IPL commissioner Lalit Modi who is holed up in London after various cases were slapped against him five years ago.

Top officials in various agencies including Enforcement Directorate, CBI, DRI, Corporate Affairs, Narcotics and Mumbai Police are scanning tons of files to zero on a fool-proof criminal case against him to enable the government to invoke PMLA.  Even the SIT was struggling yesterday through the day to zero on a criminal case against Lalit Modi so that he can be booked under PMLA. 

The UPA government slapped 15 cases against Lalit Modi for Foreign Exchange Management Act (FEMA), 1999 which does not provide ED powers to arrest him. The ED could not issue an arrest warrant against Lalit Modi due to this very reason and failed to press the Interpol to issue a Red Corner Notice. What ED issued was a “Blue Corner Notice” which is no meaning in law. Even Finance Minister Arun Jaitley admitted that there is some confusion over "the shades of blue" whether it was a Light Blue Corner Notice. 

Highly placed sources in the ED told this correspondent that the PMLA can be invoked only after a pre-dated criminal case is registered against a person under 28 Acts notified to invoke PMLA. Secondly, the PMLA case can be registered by the ED on its own if it has evidence to prove that the person laundered money which are “proceeds of crimes including drug, smuggling, terror” etc.  The problem is that if the ED converts a FEMA case into the PMLA after five years, it must have some fresh impeccable evidence to prove criminality.

Another reason for successive governments going soft on Lalit Modi is that it will also bring officials and members of the BCCI & IPL governing bodies. The game of Cricket being an all party affair, nobody wanted to precipitate the issue after Lalit Modi quietly eloped in 2010. If the UPA didn’t convert the FEMA cases into PMLA and not registered a single criminal case against Lalit Modi for four years, the NDA too looked the other way. 

Yet the pressure on the Modi government is so intense that a agencies have been told to register a criminal case against Lalit Modi under any of the 28 notified Acts to slap PMLA. Interestingly, the BCCI doesn't want to be a complainant in the matter. Therefore, the agencies are working overtime to find out a case against Modi not related to Cricket, IPL, Champions League etc. The government wants to file an appeal in the SC and for this a fresh case is considered necessary.