Amended Lokpal Bill tabled in Rajya Sabha

December 13, 2013

Lokpal_BillNew Delhi, Dec 13: The amended Lokpal, which delinks the setting up of Lokayuktas in the states and transfers the powers of sanction of prosecution against public servant to the ombudsman, was brought for consideration in Rajya Sabha today amid din.

Tabling the amended bill, Minister of State for Personnel V Narayanasamy sought the cooperation of the House in its passage.

However, the bill could not be taken up for consideration as the House was not in order with members from SP and TDP shouting slogans in the Well against price rise and bifurcation of Andhra Pradesh respectively.

Members from BJP, Trinamool Congress and others complained that nothing was audible in the din and the House should first be brought in order.

Ravishankar Prasad (BJP) urged Deputy Chairman P J Kurien to restore normalcy in the House as it was an important issue, while Derek O'Brien was seen gesturing that he was unable to hear anything.

As the din continued, the discussion on the bill could not take place as the Chair adjourned the House till 2.30 PM.

On January 31 this year, the government had amended the controversial Lokpal Bill, delinking it from the setting up of Lokayuktas in the states and transferring powers of sanction of prosecution against public servant to the ombudsman.

The Union Cabinet had accepted 14 of the 16 recommendations made by the Rajya Sabha Select Committee, which was set up in May last year amid sharp differences among political parties because of which the legislation remained stuck in the Upper House since December 2011.

The bill has been hanging in balance since then. After getting a nod from the Upper House, the bill with amendments will go back for fresh approval to Lok Sabha where it has already been passed.

The government, however, did not accept a recommendation wherein an accused public servant would get no chance to present his view before preliminary inquiry is initiated.

It also did not accept the recommendation that transfer of CBI officers assigned by Lokpal to investigate a case cannot be transferred without the approval of the anti-graft watchdog, saying it will affect the smooth functioning of CBI.

BJP demanded that the government should drop the two amendments on which there is disagreement. Government is opposed to the amendment which states that the Lokpal should be consulted before a CBI officer probing a case is transferred.

While the Opposition maintains this will check undue interference of the government, the government insists it has the right to post and transfer officials.

The other amendment on which there is no agreement between the government and Opposition is on search and seizure of an official's property. Government maintains he should be given show cause notice first when a charge of disproportionate assets is made against him while the Opposition says it will take away the element of suddenness and surprise and alert the person.

Among the recommendations accepted by the government is the one about delinking Lokayukta from the Lokpal Bill, an issue which was one of the most controversial provisions with several parties contending that it amounts to the central government encroaching upon the rights of the states.

The select committee had recommended that the state governments will have to set up Lokayuktas within one year of enactment of Lokpal.

The bill will have the provision of appointment of CBI Director by a three-member collegium comprising the Prime Minister, Leader of the Opposition in Lok Sabha and the Chief Justice of India.

The government accepted the recommendation of the committee that the power to grant sanction for prosecution of public servants could be shifted to Lokpal in place of the government.

It also agreed with the recommendation that Lokpal may be required to seek comments of the competent authority and the public servant before taking such a decision.

The Rajya Sabha panel had recommended exclusion of bodies and institutions receiving donations from the public from the purview of Lokpal.

Since bodies receiving donations from the public were also covered in the original Lokpal Bill, the government has not accepted the recommendation.

But the government had at the same time decided to exempt only bodies or authorities established under a central or state act providing for administration of public, religious or charitable trusts registered under Societies Registration Act.

The panel had recommended that seeking of comments from public servant during preliminary enquiry should not be mandatory.

But the government felt that providing an opportunity to public servant and to the government at that stage would help clear doubts in several cases and would substantially reduce the number of cases going for regular investigation.

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News Network
March 29,2020

New Delhi, Mar 29 : Notwithstanding the 21-day coronavirus lockdown, the Reserve Bank of India (RBI) has decided to go ahead with the merger plan of ten state-run banks into four larger bank from April 1. The apex bank has issued four separate releases announcing that the branches of merging banks will operate as of the banks in which these have been amalgamated from next month.

RBI's statement comes after Finance Minister Nirmala Sitharaman's clarification on Thursday that the mega bank consolidation plan was very much on track and would take effect from April 1.

The government on March 4 had notified the amalgamation schemes for 10 state owned banks into four as part of its consolidation plan to create bigger size stronger banks in the public sector.

Bank officers' unions, however, earlier this week wrote to the prime minister seeking to defer the merger schemes of lenders due to the lockdown triggered by coronavirus outbreak.

As per the scheme, Oriental Bank of Commerce and United Bank of India will be merged into Punjab National Bank; Syndicate Bank into Canara Bank; Allahabad Bank into Indian Bank; and Andhra and Corporation banks into Union Bank of India.

Under this, the branches of Oriental Bank of Commerce and United Bank of India will operate as branches of Punjab National Bank from April 1, 2020, and branches of Syndicate Bank as that of Canara Bank, the RBI said in a separate releases.

Allahabad Bank branches will operate as those of Indian Bank while the branches of Andhra Bank and Corporation Bank will function as the branches of Union Bank of India from the beginning of next fiscal year 2020-21, the RBI said.

"The Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank Scheme, 2020 dated March 4, 2020, issued by the Government of India... The scheme comes into force on the 1st day of April 2020," RBI said.

Customers, including depositors of merging banks will be treated as customers of the banks in which these banks have been merged with effect from April 1, 2020, the RBI noted.

Banking services across the country are impacted due to the effect of COVID-19 as a near shut down is being observed across the country.

In a letter written to the Prime Minister on March 25, the All India Bank Officers'' Confederation (AIBOC) said, "The finance minister yesterday announced a slew of measures in view of the deleterious effect of the contagion. We are also expecting an extension of closing related activities and the revision of the closing date itself from March 31 to June 30, which is the need of the hour."

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News Network
July 26,2020

New Delhi, Jul 26: India reported a spike of 48,661 coronavirus cases in the last 24 hours, said the Union Ministry of Health and Family Welfare on Sunday.

The total COVID-19 positive cases stand at 13,85,522, including 4,67,882 active cases, 8,85,577 cured/discharged/migrated, it added.
With 705 deaths in the last 24 hours, the cumulative toll reached 32,063.

Maharashtra has reported 3,66,368 coronavirus cases, the highest among states and Union Territories in the country.

A total of 2,06,737 cases have been reported from Tamil Nadu till now, while Delhi has recorded a total of 1,29,531 coronavirus cases.

According to the Indian Council of Medical Research (ICMR), 4,42,263 samples were tested for coronavirus on Saturday and overall 1,62,91,331 samples have been tested so far.

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News Network
February 2,2020

Feb 2: Prime Minister Narendra Modi’s second budget in seven months disappointed investors who were hoping for big-bang stimulus to revive growth in Asia’s third-largest economy.

The fiscal plan -- delivered by Finance Minister Nirmala Sitharaman on Saturday -- proposed tax cuts for individuals and wider deficit targets but failed to provide specific steps to fix a struggling financial sector, improve infrastructure and create jobs. Stocks slumped as a proposal to scrap the dividend distribution tax for companies failed to impress investors.

"Far from being a game changer, the budget provides little in terms of short-term growth stimulus,” said Priyanka Kishore, head of India and South East Asia economics at Oxford Economics Ltd. in Singapore. “While income tax cuts will provide some relief on the consumption front, the multiplier effect is low and the overall stance of the budget is not expansionary."

India has gone from being the world’s fastest-growing major economy three years ago, expanding at 8%, to posting its weakest performance in more than a decade this fiscal year, estimated at 5%.

While the government has taken a number of steps in recent months to spur growth, they’ve fallen short of spurring demand in the consumption-driven economy. Saturday’s budget just added to the glum sentiment.

Okay Budget

“It’s an okay budget but not firing on all cylinders that the market was hoping for,” said Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies in Mumbai.

The government had limited scope for a large stimulus given a huge shortfall in revenues in the current year. The slippage induced Sitharaman to invoke a never-used provision in fiscal laws, allowing the government to exceed the budget gap by 0.5 percentage points. The result: the deficit for the year ending March was widened to 3.8% of gross domestic product from a planned 3.3%.

On Friday, India’s chief economic adviser Krishnamurthy Subramanian said reviving economic growth was an “urgent priority” and deficit goals could be relaxed to achieve that. The adviser’s Economic Survey estimated growth will rebound to 6%-6.5% in the year starting April.

The fiscal gap will narrow to 3.5% next year, as the government budgeted for gross market borrowing to rise marginally to 7.8 trillion rupees from 7.1 trillion rupees in the current year. A plan to earn 2.1 trillion rupees by selling state-owned assets in the year starting April will also help plug the deficit.

Total spending in the coming fiscal year will increase to 30.4 trillion rupees, representing a 13% increase from the current year’s budget, according to latest data.

Key highlights from the budget:

* Tax on annual income up to 1.25 million rupees pared, with riders

* Dividend distribution tax to be levied on investors, instead of companies

* Farm sector budget raised 28%, transport infrastructure gets 7% more

* Spending on education raised 5%

* Fertilizer subsidy cut 10%

Analysts said the muted spending plan to keep the deficit in check will lead to more downside risks to growth in the coming months.

“It is very doubtful that the increase in expenditure will push demand much,” Chakravarthy Rangarajan, former governor at the Reserve Bank of India told BloombergQuint, adding that achieving next year’s budget deficit goal of 3.5% of GDP was doubtful.

With the government sticking to a conservative fiscal path, the focus will now turn to central bank, which is set to review monetary policy on Feb. 6. Given inflation has surged to a five-year high of 7.35%, the RBI is unlikely to lower interest rates.

What Bloomberg’s Economists Say:

The burden of recovery now falls solely on the Reserve Bank of India. With inflation breaching RBI’s target at present, any rate cuts by the central bank are likely to be delayed and contingent upon inflation falling below the upper end of its 2%-6% target range.

-- Abhishek Gupta, India economist

Governor Shaktikanta Das may instead focus on unconventional policy tools such as the Federal Reserve-style Operation Twist -- buying long-end debt while selling short-tenor bonds -- to keep borrowing costs down.

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