Former IAF chief admits he met middleman in copter deal

February 14, 2013

New Delhi, Feb 14: Former Indian Air Force chief S P Tyagi on Wednesday admitted meeting an Italian middleman who allegedly took money from Italian arms major Finmeccanica to secure a Rs 3,600-crore (€560 million) contract for purchasing 12 VVIP helicopters for the IAF's Communication Squadron.

Tyagi admitted meeting Italian middleman Carlo Gerosa at his cousin's place but went on to claim he had no further contacts with him.

“There is no denial of the fact that needle of suspicion is on me. I welcome the Central Bureau of Investigation probe, which will establish my innocence,” he said.deal

Tyagi went public with his comments hours after Italian prosecutors named three Indian brothers with family ties to the former IAF chief who reportedly took money to secure the VVIP helicopter contract for Agusta Westland, a subsidiary of Finmeccanica.

In their warrant, Italian prosecutors at north Italian town of Busto Arsizio named three Tyagi brothers—Julie, Docsa and Sandeep—for accepting money from two middlemen for swinging the Rs 3,600-crore deal in favour of Agusta Westland.

Quoting the Italian warrant, Reuters reports from Busto Arszio that Tyagi brothers received € 100,000 (about Rs 72 lakh) and two Italian middlemen Gerosa and Guido Haschke € 400,000 (about Rs 3 crore).

“I asked my brothers why were you named in the Italian probe. They said they had other business links with the company (Finmeccanica) but nothing in defence,” said Tyagi.

In October 2012, Agusta Westland claimed it never appointed, formally or informally, Guido Haschke as its agents and intermediaries in the VVIP programme and never paid any commission to him.

Tyagi said technical specifications for the aircraft—called air staff qualitative requirement (ASQR)— were frozen in 2003 before he took over. The flying height was brought down from 18,000 feet to 15,000 feet to avoid single vendor situation.

George Fernandes was the defence minister when the ASQR was fixed.

Since Fernandes was a regular visitor to Siachen—world's highest battlefield—it was initially thought the VVIP copter should be capable of flying up to Kumar Post which is at an elevation of 18,000 feet. But when the search for an appropriate product began at the Vice-Chief's office, it was realised only one company would make the cut.

Subsequently, the requirement was lowered to 15,000 feet, height of the Siachen base camp. When asked about the ASQR modification, S Krishnaswamy, who preceded Tyagi as the IAF chief, told Deccan Herald that he did not remember those figures and details.

The tender was issued in 2006, when Pranab Mukherjee was the defence minister. A defence ministry official said once the tender was issued, there was no deviation from the process.

In due course the project received approval from the Finance Ministry, where incidentally Mukherjee was minister when it received the approval. The contract was signed in 2010 after the approval of the Cabinet Committee on Security.

Chopper chaos

-Former IAF chief Tyagi says specifications fixed before his tenure; NDA’s George Fernandes was defence minister then

-Pranab Mukherjee was defence minister when tender was issued; gave approval when he was finance minister and endorsed by Cabinet Committee on Security

-Defence Minister A K Antony says deal can be cancelled at any time as the government will get back money; says no one involved will be spared

-Govt can take action on preliminary report by CBI, will decide on delivery of remaining nine choppers after report submission

- BJP senses “making of another Bofors scam”

-CPM?demands Supreme Court monitoring of CBI probe

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News Network
June 10,2020

Chennai, Jun 10: DMK MLA J Anbazhagan who had tested positive for coronavirus and was on ventilator support from June 3 passed away at a hospital in Chennai on Wednesday.

Coincidently, today is the 62nd birthday of the MLA.

"Anbazhagan J, who has been fighting for his life with severe COVID 19 pneumonia rapidly deteriorated early this morning. In spite of full medical support including mechanical ventilation at our COVID facility, he succumbed to his illness. He was declared dead at 08:05 hours on the 10th of June 2020," the hospital said in a statement.

In 2001, Anbazhagan was elected from T Nagar Assembly constituency. He served for five years.

Later in 2011, he was elected to Tamil Nadu Assembly from Chepauk-Thiruvallikeni seat. The DMK leader was re-elected from the same constituency in 2016.

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Agencies
August 2,2020

New Delhi, Aug 2: Union Home Minister Amit Shah today tested positive for COVID-19 coronavirus infection and has been admitted to a hospital. 

Shah took to social media today to inform about his infection. “I have tested positive but my health is fine," he said, adding that he has been hospitalised on the assistance of doctors. 

The Union Home Minister also appealed to those who came into close contact with him in the last few days to get themselves tested for COVID-19.

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News Network
July 16,2020

New Delhi, Jul 16: With India's economic growth sputtering, the Reserve Bank of India was expected to maintain a rate-cutting cycle, but an uptick in near-term inflation could give the central bank's Monetary Policy Committee reason to pause for now.

Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.

Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month.

"It's probably too early to administer a demand stimulus. The RBI still has room to cut rates, but we probably want to be more cautious of the timing," said Venkat Pasupuleti, portfolio manager at Dalton Investments.

"Maybe they should wait a quarter to see how things pan out once the lockdown situation is eased further."

Market participants have factored in at least a 25 bps rate cut by the MPC on August 6 while analysts are predicting a total 50-75 bps cuts over the rest of the fiscal year that runs to March 31.

The spike in the retail inflation rate above the RBI's mandated 2%-4% target range is another reason for the central bank to take a breather, analysts say.

Annual retail inflation rose to 6.09% in June, compared to 5.84% in March and sharply above a 5.30% median forecast in a Reuters poll of economists.

Rahul Bajoria, an economist at Barclays, said the spike in both consumer and wholesale prices "could lead to a tempering in enthusiasm for material front-loaded policy support from here on."

Almost all economists however agreed the RBI cannot move away from its accommodative stance or call an end to the rate cutting cycle just yet.

India's economy grew at 3.1% in the March quarter - an eight year low - and some economists have predicted a contraction of more than 20% in the June quarter and a contraction of up to 5% in the fiscal year.

"Even in the event of a pause, we think the RBI and MPC would want to hold out the promise of more cuts," said A. Prasanna, economist with ICICI Securities.

RBI Governor Shaktikanta Das said in a recent speech the need of the hour is to restore confidence, preserve financial stability, revive growth and recover stronger, suggesting inflation concerns are unlikely to deter the downward trajectory for rates too soon.

"The August policy decision would boil down to a judgment call over whether RBI can maintain easy monetary and financial conditions without the aid of a token rate cut," Prasanna said. 

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