Category: Regulatory environment

Corruption – Modi catches bull by horn

In his recent international visits, prime minister, Modi in his characteristics style observed that “he wants the country to be recognized as ‘Skill India’ in sharp contrast to the tag of ‘Scam India’ a dubious distinction it earned during a decade of erstwhile UPA – dispensation. The grand old party has taken strong objection to the observation which its senior leaders allege is tantamount to diplomatic misdemeanour and sullies India’s reputation in the comity of nations. This exposes its perverted mindset that perceives mere mention of scams as disturbing but not their actual happening [which is a hard fact, even the Supreme Court had given orders and sent ministers to jail]. Having presided over a plethora of scams, it is...
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Modi’s ‘Midas touch’ to PSU divestment

With a proactive and dynamic regime led by a ‘charismatic’ and ‘decisive’ Modiji taking charge about an year ago, divestment of government’s share in central public sector undertakings (CPSUs) has once again caught the imagination of public. When, seen purely from the perspective of garnering resources from this exercise to meet fiscal deficit target and thus, help government’s fiscal consolidation drive, 2014-15 was bit of a disappointment. Against a target of Rs 58,000 crores [Rs 43,000 crores from sale of shares and Rs 15,000 crores from divesting its ‘residual’ stake in Hindustan Zinc Limited (HZL) and BALCO], it could get only Rs 26,000 crores [bulk of it Rs 22,000 crores from 10% in divestment in Coal India Limited (CIL) alone]....
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Indian economy on ‘fast track’ – jobs will follow

In an open letter addressed to Prime Minister, Mr P Chidambaram, former finance minister in the erstwhile UPA government has taken pot shots at Modiji for his ‘alleged’ failure to create jobs. He laments that during 2014-15, jobs were generated at a measly rate of 100,000 per quarter which works out to 400,000 in the whole year. Mr Chidambaram’s observation is reminiscent of a phrase coined by ex-Prime Minister, Dr Manmohan Singh “money does not grow on tree”. Dr Singh was alluding to efforts-led creation of wealth even as right under his nose, people witnessed a contrasting spectre of huge amount of national wealth being plundered and given to close contacts/favourites of political bosses in the grand old party. However,...
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E-tailers vs retailers – ‘level off’ playing field

Mr Kishore Biyani of Future Group has alleged discrimination against brick-and-mortar players in FDI (foreign direct investment) policy vis-a-vis e-commerce companies in the retail space. Meanwhile, seeing threat from near explosion in e-commerce transactions, the Retailers Association of India (RAI) [besides Future Group, it includes Reliance Retail, Bharti Retail etc] had petitioned the government seeking a level playing field. It also approached Delhi High Court (DHC) who directed that let government deal with it first and if problem persists, it will hear their plea after 4 months. So what is the concern flagged by brick-and-mortar players? How does the discrimination arise? Are mom-and-pop stores also feeling the heat from e-commerce onslaught? What is the stance of government on FDI? What...
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Modi delivers ‘scam-free’ India

On May 26, 2015, Modi – government completes one year in office. Naturally, it is time to review and reflect on the pluses and minuses; on what it did and what it did not. But for die hard critics, those wearing coloured glasses and determined to see only negatives, all others viewing happenings from an objective and un-biased mindset will only be able to see positives as this is all that the present dispensation – led by a charismatic leader Modiji – has put on the plate of 1.25 billion people of India. Poor catapulted to center stage For the common man, the poor and the poorest among them, there is a lot to feel relieved and rejoice as the...
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Modi’s land bill won’t squeeze agriculture

Ever since the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCTLARRA) or in short Land Acquisition Act (LAA) 2013 – passed by then UPA dispensation – came in to force from January 1, 2014 not even 100 acres of land has been acquired all over the country. Indeed, in mid-2014 majority of chief ministers (CMs) including from Congress ruled states had during consultations initiated by Modi – government emphatically stated that it was impossible to acquire land under LAA (2013) and that this was becoming a major stumbling block in the way of development. Sensing the mood and in the true spirit of cooperative federalism – inculcated by hon’ble prime minister in every aspect...
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Plugging loopholes in anti-corruption law

In 1947, India got political independence under Congress which also pledged economic independence for all its citizens within shortest possible time frame. Out of 67 years since then, this grand old party ruled India for 54 years on its own and for another 6 years running a minority government with support from other parties [National Democratic Alliance (NDA) led by BJP under Vajpayee was at the helm in the remaining 7 years]. Forget economic independence, currently majority of citizens are living under economic subjugation. They are not able to generate adequate income to make both ends meet even as their condition in regard to access to housing, water, electricity, sanitation, education and health continues to be pathetic. This is primarily...
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Who is pro-corporate and anti-poor?

In a rare intervention during discussion in Indian parliament (Lok Sabha/lower house) on “Agrarian crisis in India” on April 20, 2015, Rahul Gandhi, scion of Gandhi family and Vice-President, Congress (likely to be anointed as President soon) taunted Modi – dispensation as “Suit-boot ki Sarkar”. Addressing a Kisan (farmer) rally on the previous day i.e. April 19, 2015, he had hurled another diatribe viz., “Modi took thousands of crores from industrialists/businessmen for funding his election campaign during 2013/2014 and will now be snatching away land from farmers to repay that debt”. When seen in conjunction, the two statements tantamount to a very serious insinuation that government led by him works only to promote interests of industrialists/businessmen and shows no concern...
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Tax terrorism or tax heaven – say ‘NO’ to both

In recent times, foreign investors have viewed every action of tax authorities in India with suspicion. They have reacted to tax demand for past years with vengeance and in most cases, dragged the latter to court. In several cases, they even avoid Indian jurisdiction (for fear of losing the case) and have gone for international arbitration invoking bilateral investment protection agreements (BIPAs). On a parallel track, they run high voltage media publicity which is even pushed to a point of branding India as an un-attractive investment destination and actions of I-T as ‘tax terrorism’. And, since we need foreign investment for development and building infrastructure, they get additional fuel in their armoury to intensify attack on the government. True, in...
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Invoking bilateral investment treaty on tax claims – an act of brinkmanship

In recent times, multinational companies have taken increasing recourse to international arbitration under Bilateral Investment Promotion and Protection Agreement (BIPA) to resolve the income tax (IT) department claim on them arising from application of the 2012 retrospective legislation. Spate of international arbitration Thus, the British telecom major Vodafone had invoked the India-Netherlands BIPA seeking international arbitration in its long-drawn Rs 20,000 crores tax dispute with the tax department following cancellation of its conciliation talks with the Government of India (GOI). Similarly, the Finnish mobile handset maker Nokia resorted to the treaty to resolve the tax department claim of over Rs 21,000 crores tax liability, both in the form of existing and anticipated liability, for seven years commencing 2006-07. More recently,...
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