Is President in your pocket? Sena asks BJP

Agencies
November 2, 2019

Mumbai, Nov 2: The Shiv Sena on Saturday slammed senior BJP leader Sudhir Mungantiwar for his statement that Maharashtra may head for President's rule if the new government is not put in place by November 7 and sarcastically questioned the senior ally whether the President's seal was lying at its office in the state.

The Sena, which is locked in a bitter battle with the BJP over sharing of power since the results of the assembly elections were declared on October 24, also dared its senior ally to stake claim to form the next government.

The tenure of the current Legislative Assembly ends on November 8.

Terming Sena's demand for chief minister's post on a rotational basis with the BJP as the "main hurdle" in government formation, Mungantiwar had said, "A new government will have to be in place within the stipulated time, or else the President will have to intervene. President's rule will be imposed if the government formation doesn't happen in the given time."

Attacking Mungantiwar, the Finance minister in the outgoing government, Sena said he issued the "threat" of imposing the President's rule, like other "intimidation tactics" like using investigating agencies for settling political scores have fallen flat in Maharashtra.

"What the common people have to make out of the threat given by Mungantiwar? Is that supposed to mean that President of India is in our (BJP's) pocket or that the seal of the President is lying in the office of the BJP in Maharashtra?

"Are these people trying to convey that the BJP could impose the President's rule in Maharashtra using that seal in the event of that party not able to form its government?" the Sena questioned in the edit in the party mouthpiece "Saamana".

The Marathi editorial titled "Insult to Maharashtra, Is President in your pocket?" described Mungantiwar's comments "undemocratic and unconstitutional."

"The statement shows the lack of knowledge about the Constitution and the rule of law. This threat might be a move to sidestep the established norms and get things done the way one wants. This statement is an insult to the mandate of the people," the party said.

In the October 21 assembly polls, the BJP failed to perform up to the mark though it emerged as the single largest party by winning 105 seats, 17 less than the 2014 tally, in the 288-member House. The ally Sena won 56 seats, 7 less than its 2014 performance.

The halfway mark in the Legislative Assembly is 145.

"The attitude that only we will rule irrespective of numbers and no one else can attempt the formation of the government was defeated in the recent elections," the Sena said.

The edit further said that those talking about the President's rule should first stake claim to form the government in the state.

"The President is the supreme authority in the Constitution. It is not about an individual but the country. The country is not in anybody's pocket," the editorial said.

The Sena also said it should not be blamed for the present impasse over formation of the government.

"There is no morality left in public life," it said.

Interestingly, Sharad Pawar-led NCP too on Friday criticised Mungantiwar's statement as a "kind of threat."

The Sena's fresh attack on the BJP on Saturday is likely to further strain the soured relations between both the parties.

The Uddhav Thackeray-led party has been demanding the CM's post for 2.5 years and 50:50 division of portfolios, as the BJP's tally took a beating in the polls.

Both these demands have been rejected by the BJP which has insisted that Chief Minister Devendra Fadnavis will continue to hold the post for the next five years.

Thackeray had reportedly said that other options (read NCP and Congress) are available for his party.

However, the Sharad Pawar-led NCP, which won 54 seats in the polls, had said that it would sit in the Opposition.

The Congress, which has 44 MLAs, seems to have adopted a wait-and-watch policy.

Top Congress leaders from Maharashtra on Friday held meetings in Delhi and discussed the situation with party president Sonia Gandhi.

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Agencies
July 30,2020

Mumbai, Jul 30: Counterfeiting incidents have increased 24 per cent in the country in 2019 over the previous year, creating an over Rs 1 lakh crore hole in the economy, according to a report.

The report also said counterfeiters are having a free run due to the pandemic-driven disruptions to organised supply chains and the resultant spike in consumer demand.

According to the report by ASPA, a self-regulated industry body of anti-counterfeiting and traceability solutions providers, counterfeiting has risen steadily in the last few years, and exploiting the pandemic as a cover for their activities.

Between February and April 2020, over 150 incidents of counterfeiting cases were reported, mostly about fake PPE kits, sanitisers and masks taking advantage of the high demand for these products, it noted.

"There was a 24 per cent increase in counterfeiting in 2019 over 2018, leading to the loss of more than Rs 1 lakh crore to the overall economy," said Nakul Pasricha, president of Authentication Solution Providers Association.

The association works with global authorities like the International Hologram Manufacturers Association, Counterfeit Intelligence Bureau of the Interpol, and domestic industry lobbies like Ficci, he said.

Counterfeiting is a universal issue and is 3.3 per cent of global trade, according to the OECD data, impacting social and economic development across the world.

The report lists the currency, FMCG, alcohol, pharma, documents, agriculture, infrastructure, automotive, tobacco, lifestyle and apparel, as the 10 sectors impacted most by counterfeiting.

Among these, currency, alcohol and FMCG continue to be the top three sectors with the highest counterfeiting in the last two years. The FMCG sector is most vulnerable, as counterfeit incidents rose 63 per cent between 2018 (79) and 2019 when the reported cases jumped to 129.

Within the states, the fakers have a free run in Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh, Bengal, Punjab, Jharkhand, Delhi, Gujarat, and Uttarakhand, calling for urgent actions to frame anti-counterfeiting policy measures.

According to the report, UP continues to be on top followed by Bihar, Rajasthan, and together these three states represent almost 45 per cent of all counterfeiting reported in the last two years.

What is more alarming is that counterfeiting is not limited to high-end luxury items today, as common everyday items as fake cumin seeds, mustard cooking oil, ghee, hair oils, soaps, baby care vaccines and medicines are aplenty in the markets.

"There is an urgent need for building and nurturing authentication ecosystems in the country with the active involvement and active participation of all stakeholders," said Pasricha.

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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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Agencies
March 10,2020

Bhopal, Mar 10: The number of MLAs who have resigned from the Congress in Madhya Pradesh climbed to 20 on Tuesday afternoon with another legislator quitting the ruling party, sources said.

While 19 MLAs, most of them believed to be loyal to expelled party leader Jyotiraditya Scindia, have sent their resignation letters via e-mail to Raj Bhavan, Bisahulal Singh submitted his resignation letter as an MLA to the Assembly speaker.

"We have received resignations of 19 MLAs through e-mails with attachments," a Raj Bhawan official told PTI.

Sources in Congress produced a copy of Bisahulal Singh's resignation letter which he submitted to the speaker.

Former chief minister and senior BJP leader later announced that Singh (65) has joined the BJP.

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