Vyapam scam: Chouhan buckles under pressure, seeks CBI probe

July 7, 2015

Bhopal, Jul 7: After resolutely rejecting calls for a CBI probe, Madhya Pradesh Chief Minister Shivraj Singh Chouhan today decided to seek an investigation into the murky Vyapam scam by the central agency on a day the Supreme Court agreed to hear petitions in this regard.Shivraj chauhan copy

Following Chouhan's announcement at a press conference, the state government moved the Madhya Pradesh High Court seeking its direction for institution of a CBI probe into the massive admission and recruitment scam.

"We have filed a plea in the High Court seeking a CBI probe into the Vyapam scam," Additional Advocate General P Kaurav said.

Under intense opposition attack and mounting public outrage over a string of deaths of people associated with Vyapam, a beleagured Chouhan, a third time chief minister, announced his decision to recommend to the high court a CBI inquiry.

"Loktantra lok lajja se chalta hai (public perception is important in democracy). Honouring public sentiments, I will request the high court for a CBI probe," Chouhan said, adding "the functioning of the government should be beyond any doubt."

"I have full respect for both High Court and the Supreme Court and have total faith in the ongoing probe into the Vyapam scam," he told a hurriedly convened press conference in Bhopal.

In a related development, the Supreme Court today agreed to hear on July 9 the plea of Congress leader Digvijay Singh and three whistleblowers seeking an apex court-monitored CBI probe into the scam.

Singh, a former MP chief minister, and whistleblowers -- Ashish Chaturvedi, Anand Rai and Prashant Pandey -- have also moved the apex court seeking a CBI probe under its supervision.

As Chouhan buckled under all round pressure to go for a CBI probe, a day after Union Home Minister Rajnath Singh ruled it out in the absence of a direction from the court, Congress dismissed the move, insisting merely an investigation by the premier agency would not suffice and that it should be monitored by the Supreme Court.

"Latest decision of Shivraj to write to High Court for CBI probe is another attempt to muzzle the truth. Congress rejects it in toto. For a fair probe and justice to victims, Supreme Court-monitored CBI probe is the answer," Congress's communication department chief Randeep Surjewala said in Delhi.

Party leader Digvijay Singh criticised the Prime Minister for his silence on the issue.

"The Prime Minister remains mum in the country, he only tweets about what is happening in Tunisia, Algeria," he said.

Singh, who has filed a petition in the Supreme Court seeking a CBI probe in the scam, said he would request the apex court to monitor the probe on a weekly basis as in case of the 2G scam. "The needle of suspicion points at the chief minister," he added.

CPI(M) too echoed Congress' views and supported an SC-monitored CBI probe.

It Labelled the Vyapam episode as the "most dangerous cocktail of corruption and crime" and demanded that Chouhan step down until a probe into the "sordid" scam got over.

"We hear now that the Chief Minister (is) saying that they are not opposing any CBI enquiry. We are now saying whether they oppose or not oppose, there should be (a) thorough CBI enquiry supervised by SC into the sordid affair.

"The Chief Minister should demit office till the enquiry is completed," CPI(M) general secretary Sitaram Yechury said.

The BJP, however, hailed Chouhan's announcement and hit back at the Congress for playing "politics of death" and said a thorough probe will "expose and corner" the opposition party.

"BJP was absolutely clear in its intention that we wanted probity of highest order, we wanted probe by highest body and this was articulated by none other than Finance Minister Arun Jaitley and Home Minister Rajnath Singh. Shivraj Singh Chauhan has also said so," BJP spokesperson Sambit Patra said.

Chouhan was under mounting pressure from opposition parties, particularly the Congress to order a CBI probe following the death of Arun Sharma, the dean of a Jabalpur medical college probing the scandal on Sunday in Delhi, a day after Akshay Singh, a journalist of the TV Today group on the Vyapam scam trail, mysteriously died minutes after he had interviewed the parents of a deceased girl accused.

At least five people associated with Vyapam, including Sharma and Singh, have died under mysterious circumstances in the last one week.

The opposition has claimed nearly 45 people linked to the scandal in some manner have died so far though the official figures put the "unnatural deaths" at 25.

Noting that the developments in the case demanded fair answers, Chouhan said,"I thought about the matter the whole night...The questions which have been raised need answers. It has become necessary now that CBI investigates the case."

Asked if he wanted the CBI probe to cover cases of unnatural deaths as well, he said the agency should probe "all aspects".

Asked to comment on Congress' demand for an SC-monitored investigation by CBI, the Chief Minister said,"I am ready... some friends have moved the honourable Supreme Court... HC has monitored it, now let SC do that, I am ready."

He accused Digvijay Singh of "hitting below the belt" by making "unfounded allegations" after repeatedly losing in elections.

Chouhan's announcement of a CBI probe surprised many as Union Home Minister Rajnath Singh had yesterday said the state government cannot order a CBI probe into the scam.

"SIT probe into the scam is on, and the government cannot direct the High Court or the Supreme Court on the issue," he said in Jhabua yesterday, noting the MP High Court and the Supreme Court had already rejected PILs seeking a CBI inquiry.

"If the Supreme Court or the High Court feels that the probe is not perfect to the extent it should be, then it will give directions and the government will immediately accept it and hand over the matter to the CBI," he had said.

Meanwhile, Chandresh Bhushan, a retired high court judge heading the Special Investigating Team monitoring the ongoing investigation in the scam by MP police's Special Task Force, said the Vyapam deaths were "not mysterious" but "abnormal".

"As of today, nothing has been brought forth by STF that these deaths are related to the scam," he said, rubbishing suggestions that SIT was under pressure from the state's BJP government. "We don't act under pressure," he said.

As the opposition kept up its attack on Chouhan over the scam and Modi for his silence on the issue, in potentially controversial remarks Law Minister D V Sadananda Gowda termed the scandal as a "silly issue" on which the Prime Minister need not comment.

"See, certain issues which are so simple issues, so silly issues that need not be answered by the Prime Minister. Our Home Minister (Rajnath Singh), ministers of concerned departments and even my party (BJP) president Amit Shah have answered everything. For each and every silly issue Prime Minister has to answer. It is not fair," he said.

Gowda, however, later said he had referred to the Lalit Modi controversy and not the Vyapam scandal.

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News Network
May 4,2020

New Delhi, May 4: The country's manufacturing sector activity witnessed unprecedented contraction in April amid national lockdown restrictions, following which new business orders collapsed at a record pace and firms sharply reduced their staff numbers, a monthly survey said on Monday.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.
The index slipped into contraction mode, after remaining in the growth territory for 32 consecutive months.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Amid widespread business closures, demand conditions were severely hampered in April. New orders fell for the first time in two-and-a-half years and at the sharpest rate in the survey's history, far outpacing that seen during the global financial crisis, the survey said.

"After making it through March relatively unscathed, the Indian manufacturing sector felt the full force of the coronavirus pandemic in April," said Eliot Kerr, Economist at IHS Markit.
Panellists attributed lower production to temporary factory closures that were triggered by restrictive measures to limit the spread of COVID-19.

Export orders also witnessed a sharp decline. Following the first reduction since October 2017 during March, foreign sales fell at a quicker rate in April. "In fact, the rate of decline accelerated to the fastest since the series began over 15 years ago," the survey said.

On the employment front, deteriorating demand conditions saw manufacturers drastically cut back staff numbers in April. The reduction in employment was the quickest in the survey's history.

"In the latest survey period, record contractions in output, new orders and employment pointed to a severe deterioration in demand conditions.
“Meanwhile, there was evidence of unprecedented supply-side disruption, with input delivery times lengthening to the greatest extent since data collection began in March 2005," Kerr said.

On the prices front, both input costs and output prices were lowered markedly as suppliers and manufacturers themselves offered discounts in an attempt to secure orders.

Going ahead, sentiment regarding the 12-month outlook for production ticked up from March's recent low on hopes that demand will rebound once the COVID-19 threat has diminished and lockdown restrictions eased.

"There was a hint of positivity when looking at firms' 12-month outlooks, with sentiment towards future activity rebounding from March's record low. That said, the degree of optimism remained well below the historical average," Kerr said.

In India, the death toll due to COVID-19 rose to 1,373 and the number of cases climbed to 42,533 as on Monday, according to the health ministry.

Meanwhile, the coronavirus-induced lockdown has been extended beyond May 4, for another two weeks in the country.

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News Network
May 5,2020

New Delhi, May 5: India registered the biggest jump in numbers of COVID-19 cases and deaths, with 3,900 new cases and 195 deaths being reported in the last 24 hours, according to the Ministry of Health and Family Welfare on Tuesday.

"3,900 COVID-19 cases and 195 deaths have been reported in the last 24 hours, the largest spike till now in both," according to the Ministry of Health and Family Welfare.

The total number of confirmed coronavirus cases in India reached 46,433, including 1,568 deaths, according to the Union Ministry of Health and Family Welfare on Tuesday.

According to the latest update by the MoHFW, 12,727 patients in the country have been cured and discharged, or have migrated, as of today morning. At present, there are 32,138 active cases in the country.

Maharashtra with 14,541 cases is the worst-affected state by the disease, while Gujarat with 5,804 cases is second on the list.

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News Network
May 6,2020

New Delhi, May 6: Taking a cue from states, the Centre announced one of the steepest hikes in duties on petrol and diesel in the recent past, by raising it by Rs 10 and Rs 13 per litre, respectively, in a notification issued late on Tuesday.

Retail prices, however, will see no change as the price hike will be absorbed by oil marketing companies against the fall in crude prices.

Road and infrastructure cess was hiked by Rs 8 for petrol and diesel and the special additional excise duty (SAED) was hiked by Rs 2 per litre and Rs 5 per litre, respectively. While the road cess will only go into the Centre’s coffers, the hike on account of SAED will be passed on to states via devolution at 42 per cent. Hence, the states will get only Rs 0.84 per litre in case of petrol and Rs 2.1 in case of diesel.

The decision comes after several states increased the value added tax (VAT) on petrol and diesel making use of the lower price regime. The Delhi government on Tuesday increased VAT on petrol and diesel to 30 per cent each, from 27 and 16.75, respectively. As a result, the price of petrol in Delhi increased by Rs 1.67 to Rs 71.26 a litre and diesel by Rs 7.10 to Rs 69.29 in Delhi on Tuesday.

Amid falling international crude oil prices, the Centre introduced an enabling provision in March to raise excise duty on petrol and diesel by Rs 8 per litre in the Finance Act. The government had on March 14 raised excise duty on petrol and diesel by? 3 per litre each, which was to help raise an additional ?39,000 crore in revenue annually.

This duty hike included Rs 2 a litre increase in SAED and Rs 1 in road and infrastructure cess. It raised SAED to Rs 10 for petrol and Rs 4 for diesel. The limit has now been increased to Rs 18 a litre in case of petrol and Rs 12 in case of diesel by way of amendment of the Eighth Schedule of the Finance Act.

Economists said the move would impact retail inflation by over half a percentage point at least. “With lower consumption, there was loss of revenue for Centre and states, who earn Rs 6 trillion annually or Rs 50,000 crore monthly from fuel. Amid lockdown in April, the collection must have come down to just Rs 5,000 crore, and this will hold for May.

This means that Centre and states have lost 20 per cent of annual revenue from fuel. Hence, they have hiked duties to recover losses,” said Madan Sabnavis, chief economist, CARE Ratings. He added that the hike will impact inflation by at least 0.6-0.7 percentage points.

According to industry experts, an estimate of the additional government revenue cannot be made as the consumption of petrol and diesel has dropped to 40 per cent of what it was before the lockdown. The duty hike comes following a drop in international crude oil prices in April, owing to lower consumption figures globally. At 11.50 pm on Tuesday, Brent was priced at $30.67 a barrel, while West Texas Intermediate (WTI) crude was seen at $24.36 a barrel. On Monday, the Indian basket of crude oil was priced at $23.38 a barrel, after touching a 15-year low last month.

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