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 3,2020

New Delhi, Jun 3: India registered its highest single-day spike in COVID-19 cases on Wednesday with 8,909 more cases reported in the last 24 hours, taking the country's tally to 2,07,615, while the death toll rose to 5,815 according to the Union Health and Family Welfare Ministry.

The number of active COVID-19 cases stood to 1,01,497 while 1,00,303 people have been cured/discharged/migrated.

According to the Union Health and Family Welfare Ministry, out of all the states, Maharashtra has recorded the highest number of coronavirus cases with 72,300 patients followed by Tamil Nadu with 24,586 cases.

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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
July 25,2020

New Delhi, Jul 25: Congress leader Rahul Gandhi on Saturday accused the government of benefitting by making profits during the coronavirus-induced lockdown when people were in trouble.

He tagged a news report that claimed the Indian Railways was making profit by running 'Shramik trains' for transporting migrants during the pandemic.

"There are clouds of disease and people are in trouble, but one seeks to benefit -- this anti-people government is converting a disaster into profits and is earning," he said in a tweet in Hindi.

The news report claimed that the railways made a profit of Rs 428 crore by running Shramik special trains during the lockdown that transported migrants to their native places.

In another tweet, he lauded the efforts of the Himachal government in conducting a survey to select 'one district, one product', saying he had suggested this sometime back.

"This is a good idea. I had suggested it some time back. Its implementation will need a complete change of mindset," he said on Twitter.

He also tagged a report that stated the state Industries Department is conducting a baseline survey in all districts to select one district, one product for centrally-sponsored Micro and Small Enterprises Cluster Development Programme (MSE-CDP). 

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