We need to contain subsidies, money doesn't grow on trees, Manmohan Singh says

September 21, 2012

Dr.Manmohan-singh

New Delhi, September 21: Justifying the recent decisions on FDI and diesel price hike, Prime Minister Manmohan Singh on Friday said the time has come for "hard decisions" and asked the countrymen not to be misled by those trying to confuse them by spreading fear like in 1991.

In a rare televised address to the nation, he insisted that the concerns over allowing FDI in retail were "baseless" as there is enough scope for big and small retailers to grow.

Noting that fears had been created in 1991 when he as finance minister had initiated economic reforms, Singh said those behind the scare "did not succeed then" and "they will not succeed now".

He justified the hike in diesel price and cap of six cylinders on subsidized LPG, saying these were required in the difficult economic situation and to avoid increase in fiscal deficit that would lead to steep rise in cost of essential commodities.

"No government likes to impose burdens on the common man ... At the same time, it is the responsibility of the government to defend the national interest, and protect the long term future of our people ..." Singh said.

"We have much to do to protect the interests of our nation and we must do it now. At times, we need to say 'no' to the easy option and say 'yes' to the more difficult one. This happens to be one such occasion. The time has come for hard decisions," he said, adding, "for this, I need your trust, your understanding and your cooperation."

He recalled that the last time the nation faced this problem was in 1991. "Nobody was willing to lend us even small amounts of money then. We came out of that crisis by taking strong, resolute steps. You can see the positive results of those steps," he said. "We are not in that situation today, but we must act before people lose confidence in our economy," Singh said.

Underlining that the government was at a "point where we can reverse the slowdown in our growth", he said, "We need a revival in investor confidence domestically and globally. The decisions we have taken recently are necessary for this purpose".

He made the 15-minute address to the nation in Hindi and English against the backdrop of uproar over the recent decisions to allow FDI in multi-brand retail, Rs 5 increase in diesel price and cap on subsidized LPG cylinders.

A tough-talking Prime Minister said, "money doesn't grow on trees. If we had not acted, it would have meant a higher fiscal deficit."

He told the nation that he would do "everything necessary" to put the country back on the path of high and inclusive growth.

"But I need your support. Please do not be misled by those who want to confuse you by spreading fear and false information," Singh appealed to the countrymen, adding he had full faith in their wisdom.

"As Prime Minister of this great country, I appeal to each one of you to strengthen my hands so that we can take our country forward and build a better and more prosperous future for ourselves and for the generations to come," he said.

Contending that his government has been voted to office twice to protect the interests of the 'aam admi', the Prime Minister said, "we must ensure that the economy grows rapidly" which would generate enough productive jobs for the youth of our country. "Rapid growth is also necessary to raise the revenues we need to finance our programmes in education, health care, housing and rural employment," he said.

While justifying the hard decisions of the government, Singh referred to the "great difficulty" being encountered by the world economy with even the US and Europe struggling to deal with an economic slowdown and financial crisis. Even China is slowing down, he said.

"We too have been affected, though I believe we have been able to limit the effect of the global crisis," Singh said.

Recalling that in the past eight years the economy has grown at a record annual rate of 8.2 per cent, the Prime Minister said the government has ensured that poverty has declined much faster, agriculture has grown faster, and rural consumption per person has also grown faster.

"We need to do more, and we will do more. But to achieve inclusiveness we need more growth. And, we must avoid high fiscal deficits which cause a loss of confidence in our economy," Singh said. Referring to the crisis witnessed in 1991, he said, "I would be failing in my duty as Prime Minister of this great country if I did not take strong preventive action."

He said he was determined to see that India is not pushed into a situation like the one encountered by Europe where many countries are not able to pay their bills, have to cut wages or pensions and are looking to others for help. "But I can succeed only if I can persuade you to understand why we had to act," Singh underlined.

Referring to the decision to allow foreign investment in retail trade, he said, "Some think it will hurt small traders. This is not true."

He noted that organised, modern retailing is already present in the country and growing, with all major cities having large retail chains.

Talking specifically about Delhi, Singh said it has many new shopping centres but has also seen a three-fold increase in small shops in recent years.

"In a growing economy, there is enough space for big and small to grow. The fear that small retailers will be wiped out is completely baseless," Singh asserted.

He said the opening of organised retail to foreign investment will benefit farmers.

"According to the regulations we have introduced, those who bring FDI have to invest 50 per cent of their money in building new warehouses, cold-storages, and modern transport systems.

"This will help to ensure that a third of our fruits and vegetables, which at present are wasted because of storage and transit losses, actually reach the consumer. Wastage will go down; prices paid to farmers will go up; and prices paid by consumers will go down," he said.

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Agencies
March 15,2020

Financially troubled Yes Bank on Saturday reported a standalone net loss of ₹ 18,560.31 crore for the third quarter of the financial year 2019-20. This is amongst the biggest losses reported by the India Inc.

At present, the private lender is under a moratorium and is controlled by the office of the administrator appointed by the RBI.

The bank had reported a net profit of ₹1,001.85 crore during the corresponding period of the previous financial year.

Besides, the bank's total income fell to Rs 6,268.50 crore from Rs 8,849.81 crore earned during the October-December quarter of the previous fiscal.

On consolidated basis, Yes Bank reported a net loss of ₹18,564.24 crore for the December quarter from a net profit of Rs 1,000.57 crore in the corresponding period of the previous fiscal.

The independent auditor's review report on the consolidated results pointed out that there is a "material uncertainty related to going concern" of the bank.

"The said assumption of going concern is dependent upon the degree of success of the final reconstruction scheme, the quantum of capital infused into the bank and the bank's ability to stabalise its deposit balances post withdrawal of the moratorium by the RBI. Our conclusion is not modified in respect of this matter," the auditor said.

Furthermore, the bank recognised additional loans of ₹ 5,150.2 crore as NPAs and related provisioning requirements of ₹772.5 crore for the quarter ended December 31, 2019.

The bank has recognised an additional provisions of ₹15,422.0 crore in the quarter ended December 31, 2019.

Last week, the RBI placed Yes Bank under moratorium and capped the withdrawal limit at ₹50,000 till next Wednesday.

Additionally, the central bank also superseded Yes Bank's board of directors and appointed former SBI CFO Prashant Kumar as its administrator.

Meanwhile, Kumar has been appointed as the new Chief Executive Officer of the financially troubled lender. He will take over his new responsibilities once the moratorium on the stressed lender is lifted on Wednesday.

Apart from Kumar, Sunil Mehta, former non-executive Chairman of Punjab National Bank, will take over as the non-executive Chairman of Yes Bank.

Other board members include Mahesh Krishnamurthy and Atul Bheda, both as non-executive Directors.

Additionally, six private lenders have joined the SBI to rescue Yes Bank with Federal Bank committing ₹300 crore by subscribing to 30 crore shares of ₹2 each at a premium of ₹8 per equity share.

The six private lenders have now committed an investment of ₹3,700 crore in the cash-strapped private sector bank.

On Friday, ICICI Bank and Housing Development Finance Corporation (HDFC) Ltd had announced that they will be investing ₹1,000 crore each in Yes Bank's equity. Axis Bank and Kotak Mahindra Bank will be investing ₹ 600 crore and ₹500 crore, respectively, while Bandhan Bank will invest ₹300 crore.

The SBI board has already approved up to 49 per cent stake purchase in Yes Bank, as per the RBI's reconstruction scheme for the lender. It had said on Thursday that an investment of ₹7,250 crore would be made in Yes Bank to pick up₹ 725 crore equity shares.

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News Network
April 28,2020

New Delhi, Apr 28: Outstanding loans amounting to Rs 68,607 crore of top 50 wilful bank loan defaulters in the country including firms of Mehul Choksi and Vijay Mallya have been technically written off till September 30, 2019, the Reserve Bank of India said in a RTI reply.

Absconding dimantaire Choksi's company Gitanjali Gems tops the list of these defaulters with a whopping amount of Rs 5,492 crore, according to the list.

This is followed by REI Agro with Rs 4,314 crore and Winsome Diamonds with Rs 4,076 crore.

Rotomac Global Private Limited has funded advances of Rs 2,850 crore which have been technically written off and Kudos Chemie Ltd with Rs 2,326 crore, Ruchi Soya Industries Limited, now owned by Ramdev's Patanjali, with Rs 2,212 crore and Zoom Developers Pvt Ltd with Rs 2,012 crore being the other companies.

Mallya's Kingfisher Airlines figures in the list at number 9, with outstanding of Rs 1943 crore which have been technically written off by the banks.

Forever Precious Jewellery and Diamonds Private Limited has loans of Rs 1,962 crore written off while Deccan Chronicle Holdings Limited have Rs 1915 crore written off loans.

Choksi's other firms Gili India and Nakshatra Brands also have loans of Rs 1,447 and Rs 1109 crore respectively written off.

REI Agro of Jhunjhunwala brothers is already under the scanner of ED. The CBI and ED are also probing alleged fraud by the owners of Winsome Diamonds.

Vikram Kothari's Rotomac is the fourth in the list. He and his son Rahul Kothari were arrested by the CBI for bank loan default.

In the last Parliament session, Rahul Gandhi had asked the government to provide a list of top 50 bank loans defaulters in the country, leading to sharp exchanges and uproar in the Lok Sabha.

"The information on top 50 wilful defaulters and their sum of funded amount outstanding and amount technically/prudentially written off as on September 30, 2019 reported in CRILC by banks, is provided," the RBI said in its written response dated April 24.

In his application, RTI activist Saket Gokhale had sought the list of defaulters as on February 16, but the RBI said the requested information is not available.

The RBI said that according to section 8 (1)(a) of RTI Act 2005 read with para 77 of Supreme Court judgement of December 16, 2015 in Jayantilal N Mistry case, information on overseas borrowers is exempted from public disclosure.

"Data is as reported by banks and RBI will not be held responsibly or accountable for any misreporting and/or incorrect reporting by the reporting entities," the RBI said in the written reply to the RTI query.

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News Network
February 5,2020

New Delhi, Feb 5: Kapil Baisala who opened fired at the Shaheen Bagh protest site last week is a member of the Aam Aadmi Party, police said on Tuesday, sparking a war of words between the BJP and the AAP.

While the BJP accused Chief Minister Arvind Kejriwal of "playing" with the security of the country, the AAP hit back, stating the saffron party was indulging "dirty politics".

Deputy Commissioner of Police (Crime Branch) Rajesh Deo said that Baisala and his father joined the AAP in early 2019.

Baisala's family, however, refuted the police's claim.

Kapil Baisala's uncle Fatesh Singh told PTI, "I have no idea where these photographs are circulating from. My nephew Kapil had no association with any political party nor does any other member from the family. My brother, Gaje Singh, (Baisala's father) fought assembly elections in 2008 on a Bahujan Samaj Party ticket and lost. After that no one from our family had any links with any political party."

Singh added that Baisala also doesn't have friends associated with the AAP or any other political party.

Gaje had also contested the 2012 civic body polls from the BSP, the police said.

The police officer said they seized Baisala's mobile phone and retrieved WhatsApp data.

On Saturday, Baisala fired two rounds in air at Shaheen Bagh. According to eyewitnesses, the man shouted "Hindu Rashtra Zindabad" and fired two rounds.

He was overpowered by the police and later arrested.

In the pictures, it was seen that he and his father joined the party in the presence of Atishi Marlena, Sanjay Singh and other leaders, sources said.

The police said on Thursday, Baisala, along with his friend Sarthak Larolla, went to Shaheen Bagh from his village on a bike.

Through CCTV footage, it was found they took the DND flyover, Maharani Bagh, Sarai Jullena and reached Holy Family hospital, a senior police officer said.

"Baisala was not comfortable on the bike as he had hidden the pistol near his waist. They entered the hospital's parking where he adjusted the pistol, used the washroom and headed towards Shaheen Bagh," the senior official added.

When they reached the protest site, Larolla left the spot with the motorcycle and Baisala's mobile phone. Later, Baisala fired two rounds in the air and was apprehended. The weapon was recovered from near the spot, the police said.

Larolla joined the investigation and the mobile phone was seized from his residence.

Baisala has been remanded to police remand for two days.

He had bought the pistol around seven years ago for his brother's marriage. The source of the weapon from where he procured it is yet to identified, police said.

The sources said Baisala was previously also involved in firing incident but was never caught nor was a case registered against him.

Hitting out at the AAP, BJP president J P Nadda accused Kejriwal of playing with the security of the country and said that the people will give the party a befitting reply.

"I want to make clear to Kejriwal that this country is bigger than any election, any government, and the country will not forgive those who play with its security. The people of Delhi will give a befitting reply," Nadda tweeted.

Senior AAP leader Sanjay Singh asked on whose directions was the Delhi Police accusing his party.

"Before the police revealed it (Baisala being an AAP member), how did BJP's Delhi president Manoj Tiwari come to know about it," Singh asked and accused the police of maligning the party.

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