SDPI slams Centre's stance on FDI

[email protected] (CD Network)
December 3, 2011

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Mangalore, December 3: The Social Democratic Party of India (SDPI) has termed the Union Government's stand on Foreign Direct Investment, in the multi-brand retail sector as opening the way for international supermarket giants like Wal-Mart, Carrefour and Tesco to open their shops in India, as very unfortunate.

In a press release issued by E Aboobacker, the National President of SDPI said that the government's decision has led to logjam of the Parliament that threatens to disrupt the proceedings of the winter session with Opposition parties in no mood to relent causing crores of rupees going down the drain.

It is bare truth that any foreign stake and large scale mechanization, corporatization e will badly hamper traditional craft, culture and agriculture prospects especially badly affecting the youths' prospects. India is a rural dominated poor country where Socialism and Gandhianism model can only be success, others just befool and serve the narrow purposes of a few select in power and position. “Let us remain quite vigilant of such designs and its consequences”, he reminded.

Aboobacker pointed out that the Union Cabinet does has the right to take executive decisions. However, it is unprecedented that such decisions are taken and announced when Parliament is in session. This runs contrary to the spirit of parliamentary democracy and our constitutional scheme of things. It is, therefore, not unreasonable that parliamentarians, cutting across political parties, have demanded that this decision ought to have been taken after the issue was discussed by both the Houses. Once the decision has been taken, any discussion on the issue is simply in fructuous. Unless, of course, the government is willing to reverse its decision and allow a meaningful discussion in Parliament to determine what decision India must take on this score, he added.

The statement said: “We must campaign for organic and indigenous growth policy. Give incentives for setting-up big manufacturing basis in India- when most IT products, garments are being dumped from China, Taiwan and Thailand why can't there be proud stamp of Made in India manufactured Quality products to be found around the world? Why allow IInd and IIIrd rated imports of products to India? There seems to be a sinister move by the political leaders! We must campaign for be- Indian- buy India-manufactured products”.

Similarly, the Tatas, Birlas, Ambanis et al should also be kept away from the retail business so that the lower middle class traders can be saved from the home grown industrial giants, the statement added.

Aboobacker said manufacturing is the base on which countries stand and survive. Getting manufactured goods from abroad is good only for the merchants. FDI in retail business is just another new form of occupation of the present by all sense and means. For a country like India that has got a vast variety of food items, will be forced to consume all the rotten junk from other countries particularly from the capitalist and bankrupt ones, with much higher price. The "high quality" propaganda will be there from the same source justifying this "highway man" robbery.

He emphasized that FDI in retail move will lead to large-scale job losses. International experience shows supermarkets invariably displace small retailers. Small retail has virtually been wiped out in developed countries like the US and in Europe. South East Asian countries had to impose stringent zoning and licensing regulations to restrict growth of supermarkets after small retailers were getting displaced. India has the highest shopping density in the world with 11 shops per 1,000 people. It has 1.2 crore shops employing over 4 crore people; 95% of these are small shops run by self-employed people. Jobs in the manufacturing sector will be lost because structured international retail makes purchases internationally and not from domestic sources. This has been the experience of most countries which have allowed FDI in retail, he said.

He pointed out that global retail giants will resort to predatory pricing to create monopoly/oligopoly. This can result in essentials, including food supplies, being controlled by foreign organizations, he feared.

The statement expressed surprise that BJP which once supported FDI in retail back in 2002 when it was the leading party in a coalition led by former prime minister and key BJP leader Atal Bihari Vajpayee is now opposing it. It is now threatening to stall Parliament for the remainder of its winter session Thus, its double-standards is exposed for one and all to see.

Aboobacker hoped that better sense will prevail over the Union Government and especially Prime Minister Dr. Manmohan Singh to review the Cabinet decision over FDI in retail sector and agree for healthy debate in the both Houses of Parliament before taking any final decision over the issue. Rather than adhering to some false notions of prestige, there is nothing lost if the government were to reverse its decision and allow a proper discussion and the rest of the winter session to function in order to discharge its duty in legislating on the crucial issues discussed here, he added.

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News Network
July 30,2020

Bengaluru, Jul 30: Karnataka reported 83 deaths and 6,128 new cases in the state on Thursday. With this, the total number of cases in the state stood at 1,18,632, the state health ministry said.

Currently, there are 69,700 active cases, while a total of 2,230 people have lost their lives due to the pandemic till now.

There are 15,83,792 confirmed cases across the country. Of them, 5,28,242 cases remain active. While 10,20,582 have recovered, 34,968 patients have lost their lives due to the pandemic.

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News Network
July 16,2020

Mangaluru, Jul 16: Streets in Mangaluru wore a deserted look as the city woke up to the first morning of the seven-day lockdown on Thursday.

The lockdown is being observed after the state government announced it as a necessary step to combat the spread of COVID-19.

The week-long total shutdown came into effect in the Karnataka's Dakshina Kannada district from 8 pm on July 15 till 5 am on July 22.

The state government allowed relaxation between 8am to 11 am for purchasing of essential commodities. A slight rush was observed during the hours of the relaxation.

Karnataka has so far reported 47,253 positive COVID-19 cases, including 27,859 active cases and 18,466 recoveries.

So far, 928 people have lost their lives due to the infectious virus in the state.

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News Network
February 12,2020

Mumbai, Feb 12: The Income Tax department's Criminal Investigation wing has identified 2,000 Indian citizens who hold properties in Dubai but had failed to declare it in their IT returns.

In its ongoing crackdown on black money, the agency has identified Indian citizens who purchased properties in Dubai but failed to declare and explain the source of funds used to purchase these properties.

In the past few years, people have used shell companies to route illegal money and buy overseas properties to evade income tax.

However, the tax department has now increased its efforts to track down those involved in major tax evasion cases.

The 2,000 persons and companies identified mainly include businessmen, top professionals, and government officials.

The IT department will initiate action against the accused under the Black Money Act.

Citizens who own properties outside the country but fail to declare the source of funds or income used for the purchase could be prosecuted under the Black Money Act.

Under Section FA (Foreign Assets) of the Income Tax Act, an individual has to declare purchase and ownership of properties, assets, companies owned outside the country while filing the income tax returns annually.

In the recent drive against black money, the IT department identified 2,000 Indian nationals who failed to provide information on the same while filing IT returns.

Of the 2,000 citizens owning properties in Dubai, around 600 could not furnish details regarding purchase details.

Those who haven't been able to explain the source of funds used for the purchase of properties could be prosecuted and their properties can be attached by the agency.

Other than the attachment of the property, they can face a monetary penalty up to 300 per cent of the property value and also face imprisonment under the Black Money Act.

The properties owned by Indians in Dubai raised red flags as this pattern of parking money is used by money launderers, smugglers, underworld gangsters and drug traffickers for making payments.

It is worth mentioning that of the 2,000 citizens identified, most are residing in Mumbai, followed by Kerala and Gujarat.

The clause under section FA (foreign Assets) came into effect in the year 2011-12 and it is mandatory for people owning properties outside India to declare it in their IT returns.

Those identified by IT department could also face action under FEMA (Foreign Exchange Management Act) by the Enforcement Directorate under Section 4.

Recently the Enforcement Directorate (ED) launched a crackdown on black money parked overseas by tracking and identifying immovable assets bought overseas by Indian nationals illegally.

The move is being carried out under rules laid down under Section 4 of FEMA (Foregn Exchange Manipulation Act), 1999. Section 4 of FEMA states that no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India.

On January 17, the Enforcement Directorate (ED) conducted searches at the residence of a former chief engineer of Brihanmumbai Municipal Corporation (BMC) in connection with an inquiry related to FEMA.

In the raids, the ED officials recovered documents related to the purchase of a property in Dubai in an allegedly illegal manner.

The ex-BMC chief engineer was posted with some of the most crucial wings of the municipal corporation -- the building proposal department and development plan department.

The agency did not disclose the name of the ex-BMC chief engineer but it has been learnt that he had superannuated around seven years ago from the municipal corporation.

ED, in a statement, said incriminating documents with regard to illegal acquisition of a property held in Dubai was recovered during the search operation.

The former BMC chief engineer has stated that he had purchased the property in Dubai at 'Park Island, Bonaire Marsa, Dubai' for Rs 70 lakh in 2012. The property is held jointly in his name, his spouse and son.

The retired BMC officials could not furnish any documents which would help ascertain the value of the property and also could not provide details on how the payments were made to buy the property in Dubai.

The citizens identified by the IT department recently also adopted a similar route to buy property in Delhi. It remains to be seen how the income tax department plans to penalise them.

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