CAG report is clearly disputable, flawed: PM

August 27, 2012
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New Delhi, August 28: Declaring that allegations of impropriety in coal block allocations were baseless and unsupported by facts, Prime Minister Manmohan Singh Monday said the official auditor's report was "clearly disputable" and "flawed" because of its assumptions and computations.

Making a statement in the Lok Sabha and the Rajya Sabha on the Comptroller and Auditor General's (CAG) report that irregularities in coal block allocation resulted in presumptive losses of Rs.1.86 lakh crore ($37 billion), Manmohan Singh defended himself and his government.

"I want to assure the members that as the minister in charge, I take full responsibility for the decisions of the ministry. I wish to say that any allegations of impropriety are without basis and unsupported by the facts," he said.

He sought to read out his statement on the floor of both houses -- when they reassembled at noon after being adjourned as the Bharatiya Janata Party (BJP) kept up its demand for his resignation -- but was shouted down. Finally, he laid the statement on the table.

"The facts speak for themselves and show that the CAG's findings are flawed on multiple counts," Manmohan Singh said, tracking the history of successive governments' policies on coal blocks allocations since 1993.

The CAG had earlier this month said in its report that lack of transparency in the allocation of coal blocks to private players resulted in a loss of a whopping Rs.1.86 lakh crore ($37 billion) to the exchequer as on March 11 last year.

The prime minister noted that the CAG report was critical of the allocations mainly on three counts.

The report, he said, had stated that the screening committee that decided on allotments did not follow a transparent and objective method while making recommendations for allocation of coal blocks.

It also observed that competitive bidding could have been introduced in 2006 by amending administrative instructions instead of through a prolonged legal examination of issues, which delayed decision making.

"This premise of the CAG is flawed," he said. Finally, the CAG report mentioned the delay in introduction of competitive bidding rendered the existing process beneficial to a large number of private companies.

"According to the assumptions and computations made by the CAG, there is a financial gain of about Rs.1.86 lakh crore to private parties. The observations of the CAG are clearly disputable," he added.

Later, speaking to the media outside parliament, Manmohan Singh said he was "sorry the two houses are not (being) allowed to function and BJP is determined to disrupt normal functioning of parliament".

"I wish to assure the country that we have a strong and credible case. The observations of the CAG are disputable and they will be challenged when the matter comes before the PAC (Public Accounts Committee)," he said.

Taking credit for the UPA government conceiving competitive bidding way back in June 2004, the prime minister, in his statement, also indirectly attacked the BJP, which has been vociferously demanding his resignation.

He noted that successive governments since 1993 had followed the process of allocation of coal blocks through recommendations of inter-ministerial screening committee. The BJP-led National Democratic Alliance (NDA) under Atal Bihari Vajpayee's prime ministership was in power between 1998 and 2004.

Referring to the CAG criticism of his government for not introducing competitive bidding speedily enough, Manmohan Singh said it was "easier said than done."

"In retrospect, I would readily agree that in a world where things can be done by fiat, we could have done it faster. But, given the complexities of the process or consensus building in our parliamentary system, this is easier said than done."

"The implicit suggestion of the CAG that the government should have circumvented the legislative process through administrative instructions, over the registered objections of several state governments including those ruled by the opposition parties, if implemented would have been undemocratic and contrary to the spirit of the functioning of our federal polity," he added.

Countering the CAG report point-wise, Manmohan Singh said: "Even if we accept CAG's contention that benefits accrued to private companies, their computations can be questioned on a number of technical points."

Now that the CAG report was before the parliament and remitted to the PAC, appropriate action on the recommendations and observations contained in the report will "follow through the established parliamentary procedures", he noted.


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News Network
June 24,2020

New Delhi, Jun 24: Over 1,500 urban and multi-state cooperative banks will be brought under the supervisory power of the Reserve Bank of India (RBI), said Union Minister Prakash Javadekar on Wednesday.

"Government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of Reserve Bank of India (RBI); RBI's powers as they apply to scheduled banks will apply for cooperative banks as well," Javadekar said at a press conference, through video conferencing.

"The decision to bring 1,540 cooperative banks under RBI's supervision will give an assurance to more than 8.6 crore depositors in these banks that their money amounting to Rs 4.84 lakh crore will stay safe," he added.

The Minister of Information and Broadcasting further said that the Union Cabinet has approved a scheme "for interest subvention of 2 per cent to Shishu loan category borrowers under Pradhan Mantri Mudra Yojana, outstanding as on March 31, 2020, for one year to eligible borrowers."

The Minister also said that the Union Cabinet has approved the declaration of Kushinagar Airport in Uttar Pradesh as an international airport.

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News Network
April 19,2020

Shimla, Apr 19: A man, who had recovered from the novel coronavirus, was again found suffering from the infection in Himachal Pradesh, officials said.

The man, a Tablighi Jamaat member, tested positive for the infection on Saturday within a week of his two reports coming out negative, they said.

Residents of different places in Mandi district, the man along with two other Jamaatis had been staying in a mosque of Nakroh village in Una'a Amb tehsil and all tested positive on April 2.

They were admitted to Tanda's Dr. Rajendra Prasad Government Medical College (RPGMC) in Kangra district on April 3.

As per the available information, they had tested negative for the first time on April 10 and they were declared as cured as per protocol after they tested negative for the second time on April 12.

Subsequently they had been discharged from the RPGMC and were kept in institutional quarantine.

However, with the man again testing positive, the total number of active cases in the hill state has increased to 23 out of the total 40 positive cases.

Four persons have been shifted to a private hospital outside the state. Eleven have recovered while two others have died.

A total of 16 confirmed cases were found in Una and health department statistics now shows 14 active cases and two cured.

Officials said 11 patients — three each from Chamba, Kangra, and Solan districts and two from Una district — have recovered.

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News Network
March 4,2020

New Delhi, Mar 4: The Supreme Court on Wednesday revoked the ban of cryptocurrency imposed by the Reserve Bank of India (RBI) in 2018.

Pronouncing the verdict, the three-judge bench of the apex court said the ban was 'disproportionate'.

The bench included Justice Rohinton Fali Nariman, Justice S Ravindra Bhat and Justice V Ramasubramanian.

The Internet and Mobile Association of India (IAMAI), whose members include cryptocurrency exchanges, and others had approached the top court objecting to a 2018 RBI circular directing regulated entities to not deal with cryptocurrencies.

Advocate Ashim Sood, appearing for IAMI, submitted that Reserve Bank of India lacked jurisdiction to forbid dealings in cryptocurrencies. The blanket ban was based on an erroneous understanding that it was impossible to regulate cryptocurrencies, Sood submitted.

The petitioners had argued that the RBI's circular taking cryptocurrencies out of the banking channels would deplete the ability of law enforcement agencies to regulate illegal activities in the industry.

IAMAI had claimed the move of RBI had effectively banned legitimate business activity via the virtual currencies (VCs).

The RBI on April 6, 2018, had issued the circular that barred RBI-regulated entities from "providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies".

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