Emergency a misadventure, Indira paid a heavy price:Pranab

December 11, 2014

New Delhi, Dec 11: The 1975 Emergency was perhaps an "avoidable event" and Congress and Indira Gandhi had to pay a heavy price for this "misadventure" as suspension of fundamental rights and political activity, large scale arrests and press censorship adversely affected people, says President Pranab Mukherjee.indira gandhi

A junior minister under Gandhi in those turbulent times, Mukherjee however, is also unsparing of the opposition then under the leadership of the late Jayaprakash Narayan, JP, whose movement appeared to him to be "directionless".

The President has penned his thoughts about the tumultuous period in India's post-independence history in his book "The Dramatic Decade: the Indira Gandhi Years" that has just been released.

He discloses that Indira Gandhi was not aware of the Constitutional provisions allowing for declaration of Emergency that was imposed in 1975 and it was Siddartha Shankar Ray who led her into the decision.

Ironically, it was Ray, then Chief Minister of West Bengal, who also took a sharp about-turn on the authorship of the Emergency before the Shah Commission that went into 'excesses' during that period and disowned that decision, according to Mukherjee.

Mukherjee, who celebrated his 79th birthday today, says,"The Dramatic Decade is the first of a trilogy; this book covers the period between 1969 and 1980...I intent to deal with the period between 1980 and 1998 in volume II, and the period between 1998 and 2012, which marked the end of my active political career, in volume III."

"At this point in the book, it will be sufficient to say here that many of us who were part of the Union Cabinet at that time (I was a junior minister) did not then understand its deep and far reaching impact."

Mukherjee's 321-page book covers various chapters including the liberation of Bangladesh, JP's offensive, the defeat in the 1977 elections, split in Congress and return to power in 1980 and after.

The President says there was no doubt that Emergency brought discipline in public life, a growing economy, controlled inflation, a reversed trade deficit for the first time, enhanced developmental expenditure and a crack down on tax evasion and smuggling but "it was perhaps an avoidable event".

"Suspension of fundamental rights and political activity (including trade union activity), large scale arrests of political leaders and activists, press censorship, and extending the life of legislatures by not conducting elections were some instances of Emergency adversely affecting the interests of the people. The Congress and Indira Gandhi had to pay a heavy price for this misadventure," says Mukherjee.

Recounting the dramatic moments leading to declaration of Emergency minutes before midnight of June 25, 1975, he says that it was the suggestion of Ray, then Chief Minister of West Bengal, and Indira Gandhi acted on it.

"Indira Gandhi told me subsequently that she was not even aware of the Constitutional provisions allowing for the declaration of a state of Emergency on grounds of internal disturbance particularly since a state of Emergency had already been proclaimed as a consequence of Indo-Pak conflict in 1971", he says.

Ray, then member of CWC and Central Parliamentary Board, was one of the "most influential advisors" of Indira Gandhi with his views being sought on diverse issues.

"Siddhartha Babu had considerable influence over the decision making process of the organisation and administration...In matters relating to West Bengal, he was the decisive voice. So it was not surprising that he was privy to considerable information...," the President said.

Interestingly, though not surprisingly, once it was declared, there were a whole host of people claiming authorship of idea of declaring the Emergency.

And, again not surprisingly, these very people took a sharp about-turn before the Shah Commission.

"Not only did they disown their involvement, they pinned all the blame on Indira Gandhi pleading their own innocence. Siddartha babu was no exception. Deposing before the Shah Commission, he ran into Indira Gandhi--draped in a crimson sari that day--in the Commission hall and tossed a sprightly remark: 'You look pretty today'.

'Despite your efforts,' retorted a curt Indira Gandhi.

Terming the Shah Commission proceedings as "peculiar", Mukherjee said,"Suffice it to say that it seemed that the Commission was collecting materials and information only to substantiate a pre-conceived conclusion."

Mukherjee recalled that a number of ministers and bureaucrats deposed before the Commission blaming Indira Gandhi "alone" for the imposition of the Emergency with the Cabinet not being taken into confidence.

Giving details of the testimony of the then Home Minister Kasu Bramhananda Reddy before the Commission, the President said Reddy told the panel that he was called by the Prime Minister at 10.30 PM and was told that on account of deteriorating law and order situation, it was necessary to impose an internal Emergency.

According to Reddy, he told the Prime Minister that the powers already available under the existing Emergency could be availed of to deal with the situation but was overruled by Indira Gandhi saying internal Emergency was "considered necessary."

"Bramhananda Reddy told the Commission that he then signed a letter to the President of the Republic and appended the draft proclamation of Emergency for the President's assent with this letter. The Letter signed by Brahmananda Reddy was on a plain sheet of paper and not on the letter head of the Home Minister of India," he said.

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News Network
March 29,2020

Theni, Mar 29: A young man under home quarantine for coronavirus after return from Sri Lanka suddenly ran out of his house and fatally bit a 80-year old woman in his neighbourhood in a village near here, police said on Saturday.

The woman with injuries in her neck was hospitalised late Friday after the incident but died on Saturday without responding to treatment, they said.

The man, a resident of Jakkamanayakanpatti and engaged in seasonal business in clothing, was overpowered and handed over to police, who arrested him and investigations were on.

He had recently returned from Sri Lanka and directed to remain under quarantine by health authorities as per the protocol for foreign returnees to check coronavirus spread.

He came out of his house on Friday evening and all of a sudden, denuded himself and began running through the street.

Shocked family members including his father gave a chase even as he caught hold of Nachiyammal, seated on her house’s front yard and bit hard her neck.

The man’s kin overpowered him and admitted the woman to nearby Bodi Government Hospital where doctors on Saturday said she succumbed to her injuries, not responding to treatment. Health authorities were unavailable for comments immediately.

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Agencies
June 20,2020

New Delhi, Jun 20: After Prime Minister Narendra Modi said there are no foreign incursions into India, China has once again claimed that Galwan valley of Ladakh union territory is located on the Chinese side of the Line of Actual Control (LAC).

In an official statement on the step-by-step account of the Galwan face-off where 20 Indian soldiers were killed, China's foreign ministry spokesperson Zhao Lijian has said the Galwan valley is located on the Chinese side of the LAC in the west section of the China-India boundary.

"For many years, the Chinese border troops have been patrolling and on duty in this region," Zhao said alleging that since April this year, the Indian border troops have unilaterally and continuously built roads, bridges and other facilities at the LAC in the Galwan Valley.

China has lodged representations and protests on multiple occasions but India has gone even further to cross the LAC and make provocations, Zhao said.

By the early morning of May 6, the Indian border troops, who had crossed the LAC by night and trespassed into China's territory, built fortification and barricades, which impeded the patrol of Chinese border troops, Zhao said adding that they deliberately made provocations in an attempt to unilaterally change the status quo of control and management.

The Chinese border troops, he said, were "forced to take necessary measures to respond to the situation on the ground and strengthen management and control in the border areas."

In order to ease the situation, China and India have stayed in close communication through military and diplomatic channels, he said. "In response to the strong demand of the Chinese side, India agreed to withdraw the personnel who crossed the LAC and demolish the facilities, and so they did.

On June 6, the border troops of both countries held a commander-level meeting and reached consensus on easing the situation. The Indian side, he said, promised that they would not cross the estuary of the Galwan river to patrol and build facilities and the two sides would discuss and decide phased withdrawal of troops through the meetings between commanders on the ground.

"Shockingly, on the evening of June 15, India's front-line troops, in violation of the agreement reached at the commander-level meeting, once again crossed the Line of Actual Control for deliberate provocation when the situation in the Galwan Valley was already easing, and even violently attacked the Chinese officers and soldiers who went there for negotiation, thus triggering fierce physical conflicts and causing casualties."

"The adventurous acts of the Indian army have seriously undermined the stability of the border areas, threatened the lives of Chinese personnel, violated the agreements reached between the two countries on the border issue, and breached the basic norms governing international relations," the spokesperson said.

Beijing, he said, hopes that India will work with China, follow faithfully the important consensus reached between the two leaders, abide by the agreements reached between the two governments, and strengthen communication and coordination on properly managing the current situation through diplomatic and military channels, and jointly uphold peace and stability in the border areas.

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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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