Jaitley back in Lutyen's Delhi, Gets a new ministerial Bungalow

by Harish Gupta, National Editor, Lokmat Group

Special Report

Jaitley back in Lutyen's Delhi, Gets a new ministerial Bungalow

Harish Gupta

New Delhi, July 8

Former Finance Minister Arun Jaitley will be back in Lutyen's Delhi soon.

If reports are to be believed, Jaitley has been allotted a new Bungalow number 22 at Akbar Road. The bungalow, presentely under occupation of former Union Minister of Steel Chaudhary Birender Singh, is now available for re-allotment.

Arun Jaitley who had shifted to his private house in Kailash Colony last month, has been re-allotted the Type VIII ministerial bungalow by the government. Jaitley had vacated his ministerial bungalow 2 Krishna Menon Marg and declined to become Finance Minister in the Modi-2 government on health ground. Prime Minister Narendra Modi had visited him to persuade him to stay on the government bungalow and suggested that he take oath as Minister without portfolio until he fully recovers.

It is learnt that Jaitley is showing signs of recovery and responding to treatment lately. As a member of the Rajya Sabha, Jaitley has been offered a ministerial once again due to his seniority. Jaitley accepted the offer and opted for 22 Akbar Road bungalow. However, Chaudhary Birender Singh will vacate the house he gets an alternative place of accommodation. He too is entitled to a bigger house being a member of Parliament since 1984 or an MLA and former minister.

The allotment and acceptance of 22 Akbar Road bungalow is significant in the sense that Jaitley considered his previous official residence as inauspicious. He believed that ever since he shifted to the Krishna Menon Marg house, his health continued to suffer and he had to undergo one surgery after the other.

But the 22 Akbar Road bungalow's previous occupants had been illustrious including Bihar Chief Minister Nitish Kumar, Ghulam Nabi Azad, Ambika Soni and others. Its a different matter that Union Power Minister R K Singh remains unruffled with these beliefs and accepted the allotment of Jaitley's previous bungalow at Krishna Menon Marg. He is a former Union Home Secretary and believes and houses don't decide anybody's destiny.

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Modi Begins Govt. Formation Exercise

by Harish Gupta, National Editor, Lokmat Group

Modi Begins Govt. Formation Exercise

Amit Shah disinclined to join the Govt.

Search for LS Speaker begins, Rajnath, Tomar considered

Modi visits ailing Jaitley, disinclined to become FM

Harish Gupta

New Delhi, May 24

After the historic mandate, the Prime Minister Narendra Modi began the process of government formation today. He tendered resignation to the President today after the customary Cabinet meeting who asked him to continue until the new government takes oath of office. Earlier in the day, he called on the Union Finance Minister Arun Jaitley who has been advised rest and wished him on his marriage anniversary too. The PM was desirous of his continuation and a last word is yet to be written as everything depends on his health condition.

Another issue is the choice of new Speaker of the Lok Sabha after Sumitra Mahajan was denied the ticket.

Highly placed sources say that two names are doing the rounds for the coveted post- Union Home Minister Rajnath Singh and Rural Development and Parliamentary Affairs Minister Narendra Singh Tomar. Rajnath Singh will be considered only in the event of BJP president Amit Shah becoming the Union Home Minister. But Amit Shah is disinclined to join the government until he completes two terms of three years each. Secondly, he also wants to win Delhi Assembly in 2020 and West Bengal in 2021. He has also told his confidantes that the party's footprint has to be expanded in areas where it has negligible presence. Modi has a tough task to find some hidden talent among the 303 Lok Sabha MP s. Once a decision on the Speaker is taken, rest of the positions like External Affairs, Defence, Finance and Home will fall in place.

There are also indications that some world leaders may be invited for the Swearing-in-Ceremony including Russian President Vladimir Putin. World leaders have already congratulated him. Other global leaders may also come, if Modi opts to make it a mega event like 2014.

Railways and Coal Minister Piyush Goyal will be new FM if Jaitley finally refuses to hold the post. Giant killers; Smriti Irani and Ravi Shankar Prasad are set for a promotion too. Senior BJP leader Santosh Gangwar will be the pro tem speaker and he will sworn along with the new members of Lok Sabha.

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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 : IBC Code divided the Cabinet, for a change

by Harish Gupta, National Editor, Lokmat Group

fly on the wall 

IBC Code divided the Cabinet, for a change

For a change, Union Cabinet witnessed some prolonged if not heated discussions when the Insolvency Bankruptcy Code (IBC) Ordinance was brought before it. A couple of Cabinet Ministers felt that if the purpose of the Ordinance is to revive 500 sick companies, it will be rather detrimental. But the Finance and Corporate Affairs Minister Arun Jaitley argued that if this Ordinance is brought, then all sick companies will be grabbed by the relatives and friends of those promoters who had looted them for decades. The actual value of these companies is less than 50%. The government wants that new genuine promoters should come forward. Some ministers said the Ordinance is so stringent that there will be no buyers left. When a another senior minister quipped that it would impossible to find such buyers in India, Jaitley said world is looking at India how this government is dealing with corrupt promoters. Another minister pointed out to Jaitley that the money was lent to these companies by the banks and let the banks be given free hand to deal with the situation. Why the government was interfering in the process. At this, Jaitley got irritated but replied in a coll manner that the IBC was evolved only after intense consultations with the bank who are finding themselves unable to deal with the crisis. The willful defaulters are creating all sorts of hurdles in selling these companies after milking them for decades. The government won't allow any relative to buy the sick company of another relative. Prime Minister Modi maintained a complete silence when the debate was going on the Ordinance. The Ordinance was later issued and now set to be challenged.

Sonia to continue as CPP chairman as Rahul cracks whip

Rahul Gandhi has done what none including Sonia Gandhi dared in the past; suspending senior leader of late Rajiv Gandhi era. Manishankar Aiyer who was an IFS, quit his job and joined Rajiv Gandhi and never looked back. He held key positions and often put Dr Manmohan Singh and Sonia Gandhi in trouble for his remarks all these years. But nobody touched him as he was an “uncle” to the Gandhis. Aiyer thought the storm over his “neech” remark will blow over with his “half-hearted regret” and that too with riders. Rahul Gandhi was furious when Aiyer didn't tender unqualified apology as directed and cracked the whip. Though Rahul Gandhi wants to carry the oldies in the party with him and won't reshuffle the pack after assuming office of the Congress president on December 16. But he won't sack anybody. Meanwhile, it is unclear whether Ahmad Patel who is Political Adviser to Congress President (CP) will continue to hold the post. It is clear that Rahul doesn't want political adviser and will rely on the “entire leadership” rather than one individual. It is yet to be seen if Ahmad Patel is made political adviser to the Chairman of the CPP (Congress Parliamentary Party) or not. It is emerging that Sonia Gandhi will continue to be the chairman of the Congress Parliamentary Party until the 2019 Lok Sabha polls. Congressmen say that while Sonia Gandhi always avoided taking risks, Rahul Gandhi is no-nonsense kind of a person and by suspending Aiyer, he has sent a signal to senior leaders to keep their tongue under check.

Akola makes Yashwant Sinha a mass leader, BJP worried 

Yashwant Sinha may be in political wilderness and a loner. But over-night, he made the ruling party worried when he landed in Akola in Maharashtra and forced the Fadnavis government to concede all the six demands of the farmers. The tremendous success in a short span of time of the farmers' agitation surprised political class as Sinha was able to mobilise the support of not only local farmers but also West Bengal Chief Minister Mamata Banerjee and other parties looking for a leader worth a salt. She dispatched Dinesh Trivedi and now it transpires that Swabhiman Paskha Party, Aam Aadmi Party, Biju Janata Dal and several others may swim in the troubled waters in BJP ruled states. They have got a leader in Yashwant Sinha who is 80 years plus and working hard to engineer a revolt within the BJP too. Don't dismiss the 80 year old job seeker as he is enjoying a new role of farmers messiah. One will have to wait for some more time how things take shape.

She-Box Zeal takes Maneka no where

Maneka Gandhi launched the a comprehensive She-Box, an online complaint management system for working women to lodge complaints of sexual harassment at work places. This was under the Sexual Harassment of Women at Workplace (Prevention, prohibition and Redressal ) Act which is called the She Act 2013. it was passed during the UPA regime but Maneka has been focusing on its tough implementation ever since she became a minister in 2014. Its an online portal facility and covers even those who have already filed their complaints to the private or government companies or department. The ministry published even a handbook to pretext the dignity and safety of women. The PIB churned out a huge handout of the launching of the She Box on November 7. But shockingly, the same handout with verbatim words was issued by the same ministry on the same subject six months ago, on July 24 to be precise. The Press Information Bureau has both the press releases on its website with a five months gap. The Fly was told that ministers are under so much of pressure from the PMO to show activities relating to their ministries in the media that even when they have no event, they are forced to create an event. Maneka hit upon the idea of recycling press bulletins.

Finding a new defence minister a herculean task

by Harish Gupta, National Editor, Lokmat Group

Special report

Finding a new defence minister a herculean task

Harish Gupta

New Delhi, May 3 :

Finding a new Defence Minister is getting extremely tough for Prime Minister Narendra Modi. 

Though pressure is mounting from the Opposition parties that Modi find a full-time Defence Minister considering continued threat from across the borders, Modi is finding it difficult to relieve Finance Minister Arun Jaitley of the additional charge.

The issue cropped up again when Jaitley called on the PM yesterday ostensibly to discuss the crisis in the Valley and mutilation of bodies of the Indian jawans by the Pakistanis.

Jaitley who was to visit Japan had to defer his visit by two days in the wake of current situation. It is learnt that he pleaded with Modi to relieve him of the additional charge as early as possible. However, Modi is reported to have said that it will take a while to find a suitable person for the key Cabinet post. Modi doesn’t want to reshuffle his Cabinet in a hurry and under pressure.  

The reasons for not appointing a full-time Defence Minister after Manohar Parrikar’s sudden departure to Goa are many. Sources say that the matter was discussed at the high-powered core committee meeting of the party comprising of PM, BJP chief Amit Shah, Arun Jaitley, Rajnath Singh, Nitin Gadkari and M Venkiah Naidu. 

Modi reportedly said the situation is back to square one as it existed in May 2014 when Arun Jaitley had to be given the dual charge of the defence ministry in May 2014.

He had a great difficulty in persuading Manohar Parrikar to come to Delhi and hold the charge of Defence Ministry. But he had to go back in less than two years. He asked the core group members to suggest a name for the post as none of the senior Chief Ministers of the BJP ruled states can be moved out as Assembly elections are likely to be held within the next 12-18 months in their states.

Though one of the proposals under the consideration was to move Railway Minister Suresh Prabhu to Defence and give additional charge of the Railways to the Road Transport Minister Nitin Gadkari. But it was felt that no purpose will be served by replacing dual charge of one minister with the other.

Secondly, Modi is keen to undertake a major reshuffle of his Cabinet. He wants to do it after the President and Vice President’s elections in July-August. 

Modi is also keen to find new faces in states who can be brought to the Centre. Amit Shah is already on tour of states for next 90 days and tirelessly campaigning. 

The PM had told a group of MPs from Maharashtra the other day that 30 ministers of his government have no work after 2 pm. He had also said that good governance is minimum government which virtually signaled that he may trim his ministry.

Therefore, finding a new Defence Minister is turning out to be a herculean task.

Dual charge of Defence puts Jaitley in a spot

by Harish Gupta, National Editor, Lokmat Group

Exclusive report

Dual charge of Defence puts Jaitley in a spot

  

Harish Gupta

New Delhi, March 23

Finance Minister Arun Jaitley found himself in a tight spot when he took over as Defence Minister’s charge after Manohar Parrikar demitted office earlier this month.

The piquant situation arose because as Defence Minister he will have the financial powers to buy weapon systems of Rs 2000 crores on his own without going to any other ministry or the PMO.

In fact, earlier this power was Rs 500 crores to the Defence Ministers. But the PM Narendra Modi enhanced from Rs 500 crore to Rs 2000 crore to buy weapon systems when Parrikar was Defence Minister.

Modi also directed through an executive order that the combined financial powers of the Defence and Finance Ministers will be Rs 3000 crores. The Defence & Finance Minister need not come to the Cabinet or to the PMO before buying defence equipment and they together can decided decide between them to buy up to  Rs 3,000 crore. The decision to enhance the financial power of the key acquisition related ministers has been taken at the apex level by the Prime minister. The order was issued to enable  services to carry out low valued essential purchases without waiting to get clearances. It had been a long pending demand of the services as one of the measures to speed up acquisitions.

However, with Jaitley assuming the charge of Finance & Defence ministries, he holds the power to buy weapon systems up to Rs 3000 crores.

It is authoritatively learnt that he raised the issue of with the PM recently that he holds only an additional responsibility until the new person arrives. Therefore, it will be not be desirable that he sit on judgment of two ministries for buying equipment. He is reported to have told the PM that a way be found to resolve the dilemma.  When asked Jaitley told Lokmat informally that this issue has certainly put him in an awkward situation.

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