Protests erupt in Iran over high cost of living

Agencies
December 30, 2017

Hundreds of protesters have rallied in several Iranian cities against rising prices, unemployment and economic inequality, according to anti-government activists and Iran's semi-state news agency Fars.

About 300 people protested in Kermanshah, a city in western Iran, on Friday, according to Fars.

Police intervened after protesters damaged public property, the news agency reported.

Protests also broke out in the capital Tehran, according to social media.

The protests came after an earlier demonstration in Mashhad, Iran's second-largest city, on Thursday drew "thousands" of residents, anti-government activists said on social media.

Rallies were also held in a handful of other cities to decry rising food prices and other economic issues.

The prices of several staples, including eggs, have risen by up to 40 percent in recent days, the Associated Press news agency said.

Eshaq Jahangiri, Iran's first vice president, acknowledged that "there is an increase in the prices of some products", but said "the government is working on fixing the causes of the high prices".

Jahangiri also cast doubt on whether the protests were solely motivated by economic issues.

"The people behind what is taking place think they will be able to harm the government, but when social movements and protests start in the street, those who have ignited them are not always able to control them," he said.

High unemployment

In August, the Iranian Central Bank said inflation had reached 10 percent, the Tehran Times newspaper reported at the time.

The unemployment rate reached a three-year high of 12.7 percent last year, according to the World Bank.

Adnan Tabatabai, a political analyst and co-founder of the Germany-based Center for Applied Research in Partnership with the Orient, wrote on Twitter that the protests "are driven by socioeconomic grievances, not political aspiration".

"Peaceful sit-ins, strikes & gatherings in front of ministries & state institutions have happened regularly in various parts of the country, as people continue to have unresolved/unaddressed economic grievances," Tabatabai wrote.

Still, the protests have also been conspicuous for their anti-government slogans.

On social media, anti-government activists said protesters had chanted for the release of political prisoners, while others reportedly shouted, "Death to Rouhani", referring to Iranian President Hassan Rouhani, said news agency.

Rouhani, who was re-elected to a second term in May, has been under pressure from his conservative opponents inside Iran over perceived efforts to liberalise the country.

Tabatabai, the political analyst, said he did not believe the protests were the start of a revolutionary movement in Iran.

Instead, he wrote on Twitter that they signal that Rouhani, his government and Iran's political elite as a whole "must finally take [the] socioeconomic grievances" of ordinary Iranians seriously.

Videos of the protests in Mashhad, published by small reformist media group Nazar, showed people shouting "not Gaza, not Lebanon, my life for Iran", AFP reported.

The slogan reflects anger that the Iranian government is focusing on regional politics at the expense of tackling domestic issues.

Iran's semi-official news agency ILNA reported that about 50 people also protested in a public square in the capital, Tehran, on Friday, AP reported.

Mohsen Hamedani, the security deputy for Tehran's governor, said a few people were "temporarily arrested", but did not specify how many, said the news agency report.

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Agencies
March 8,2020

Mumbai, Mar 8: A day after the Enforcement Directorate registered a money laundering case against Yes Bank founder Rana Kapoor and raided his premises, he was taken to the agency's office in Mumbai on Saturday for further questioning.

Kapoor, who was grilled by central agency's officials on Friday night at his Samudra Mahal residence in Mumbai, was shifted to the ED office in the metropolis around 12.30 pm.

ED officials said Kapoor was questioned throughout the night, with some rest time.

A senior ED official connected with the probe told IANS: "Kapoor will be questioned about Yes Bank loans to Dewan Housing Finance Limited (DHFL)."

The official said that during searches a lot of incriminating documents were found and the agency wanted to grill him on his links with DHFL promoters and other companies.

Kapoor's alleged role in the disbursal of loan to a corporate entity and kickbacks reportedly received in his wife's bank account are also under probe.

The ED had filed the money laundering case against Kapoor and raided his residence, apart from issuing a look-out circular so that he does not flee the country.

The ED registered a money laundering case against Kapoor as a continuation of its probe against the DHFL wherein it was allegedly found that Rs 12,500 crore was diverted to 80 shell companies using one lakh fake borrowers. The transactions with these shell companies date back to 2015.

An ED official in New Delhi told IANS that the DHFL probe revealed that funds diverted by the DHFL originated from Yes Bank.

He said that the searches at Kapoor's residence on Friday night were meant to find out any irregularity in grant of loans to the DHFL by the Yes Bank.

The ED has accused Kapil and Dheeraj Wadhawan of DHFL of purchasing shares in five firms -- Faith Realtors, Marvel Township, Abe Realty, Poseidon Realty, and Random Realtors -- after which they were amalgamated with Sunblink.

The outstanding loans of these five firms, totalling around Rs 2,186 crore till July 2019, were allegedly appropriated onto the books of Sunblink to cover up the diversion of loans acquired from DHFL.

The ED's action comes after the RBI superseded Yes Bank Board for 30 days and appointed an administrator, putting a cap of Rs 50,000 on withdrawals by account holders for a month.

The RBI said that the bank's board was superseded "owing to serious deterioration in the financial position of the bank".

Former SBI CFO Prashant Kumar was appointed as administrator of Yes Bank, which has over 1,000 branches and 1,800-plus ATMs across the country.

On Thursday, Union Finance Minister Nirmala Sitharaman said that the bank was on watch since 2017 and developments relating to it were monitored on a day-to-day basis.

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Agencies
June 21,2020

New Delhi, June 21: Diesel prices rise to record high after 60 paise hike in rates, petrol up 35 paise; rates up by Rs 8.88 and Rs 7.97 in 15 days.

Petrol price in Delhi was hiked to Rs 79.23 per litre from Rs 78.88, while diesel rates were increased to Rs 78.27 a litre from Rs 77.67, according to a price notification of state oil marketing companies. 

In Bengaluru, petrol will be costlier by 37 paise at Rs 81.81 per litre, while diesel will cost 57 paise more per litre at Rs 74.43.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The 15th daily increase in rates since oil companies on June 7 restarted revising prices in line with costs after ending an 82-day hiatus in rate revision, has taken diesel prices to a new high. The petrol price too is at a two-year high.

Over 63 per cent of the retail selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT. 

Petrol in Mumbai costs Rs 86.04 per litre and diesel is priced at Rs 76.69.

Prior to the current rally, the peak diesel rates had touched was on October 16, 2018 when prices had climbed to Rs 75.69 per litre in Delhi. The highest-ever petrol price was on October 4, 2018 when rates soared to Rs 84 a litre in Delhi.

When rates had peaked in October 2018, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre each. State-owned oil companies were asked to absorb another Re 1 a litre to help cut retail rates by Rs 2.50 a litre.

Oil companies had quickly recouped the Re 1 and the government in July 2019 raised excise duty by Rs 2 a litre.

The government on March 14 hiked excise duty on petrol and diesel by Rs 3 per litre each and then again on May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. The two hikes gave the government Rs 2 lakh crore in additional tax revenues.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), instead of passing on the excise duty hikes to customers, adjusted them against the fall in the retail rates that was warranted because of a decline in international oil prices to two-decade lows.

International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.

In 15 days of hike, petrol price has gone up by Rs 7.97 per litre and diesel by Rs 8.88 a litre.

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News Network
May 5,2020

Dubai, May 5: A Saudi ministerial decision issued on Monday allows companies in the private sector to reduce salaries by 40 per cent and allows termination of contracts owing to the economic hardships resulting from the COVID-19 pandemic, according to daily newspaper Al Sharq Awsat.

The new decision was still not published by the cabinet according to the newspaper.

The decision which the newspaper saw a copy of was signed by Saudi Ministry of Human Resources and Social Development to regulate the labour contract in the current period, allows employers to reduce the employees salaries by 40 percent of the actual effective wage for a period of 6 months, in proportion to the hours of work and allowing the termination of employee contract after 6 months of the COVID-19 circumstances.

The new decision has also included a provision in which the employer would be allowed to cut wages even he or she benefits from the subsidy provided by the goverment, such as those for helping pay workers wages or exemption from government fees.

The decision also stressed that employers are not allowed to terminate any employee, unless three conditions are met.

1.            First the passing of six months since the measures of salary cut has been taken

2.            Reducing pay, annual leave and exceptional leave were all used

3.            Company proves that its facing financial troubles due to the circumstances.

The memo, which goes into affect as soon as its published in the government’s official newspaper, ensures that the employee will receive his/her salary if on annual leave within the period of 6 months.

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