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March 5, 2016 `

VOL. 9, ISSUE 12



NPA Mess
Banking system totters
under bad loans


p3 LLI : G


Power is shifting from

the legislature to the
judiciary and media



ISSN 0976-2906


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From the Editor

vol. 9, ISSUE 12 | MARCH 2016

Anil Tyagi | editor
TR Ramachandran | executive editor
Niranjan Desai | roving editor
GS Sood | consulting business editor
Vartika Nanda | consulting editor
Rakesh Bhardwaj | editorial consultant
Naresh Minocha | contributing editor
Anish Gandhi | consultant, foreign affairs
Narendra Kaushik | associate editor
Sanjeev Acharya | associate editor
Venugopalan | bureau chief (bengaluru)
Kanika Srivastava | sub-editor & coordinator
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Pawan Kumar | production coordinator
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wo major issues cropped up during a recent discussion on the state of

affairs in Indiaone was the power shift and the other was the catastrophe in Indian banks. BN Uniyal, a veteran journalist, asked me, Dont
you observe that power is shifting from the legislature to the judiciary to the
media? I was confounded. And so gfiles cover story on this power shift was
born. Our ace writers, Alam Srinivas, MG Devasahayam and Dr GS Sood, were
equally troubled about the escalating Non-Performing Assets (NPAs) of Public
Sector Banks (PSBs). If the PSBs keep doing business the way they are, the
financial system of the country is in jeopardy. gfiles is carrying the power shift
in India and the NPAs catastrophe stories with equal emphasis. Uniyal has
keenly observed the Indian polity, society and politicians for five decades. He
writes about the impact of the power shift, Bureaucrats and their decisions
and actions are also affected as much by the impulses flowing in the system
from different quarters. If these impulses are not in harmony or synchronised
at some higher level of thought or theory, bureaucrats are sure to get disoriented like a robot whose wiring gets tangled up. The power shift and the NPAs
are both serious governance issues. The resultant mayhem is the accumulated
effect of non-performance of the legislature, which has ultimately intimidated
the financial and democratic set-ups. Why has this happened? Is the democratic set-up faulty or are our governance tools not working in a coordinated
manner? The prime factor is that our legislature could not anticipate the impact
of the multiplication of problems in India. Our leadership seems to have been
myopic. Planning and implementation were not robust. In the last 68 years, the
population has grown four times from 33 crore to 127 crore, but the nations
resources have not grown with the same rapidity.
The lacklustre governance created a new mass which exploited the financial
and natural resources of India and amassed wealth which created a society of
haves and have-nots. In 1991, India opened the Pandoras box of liberalisation. We invited everybody though the system of governance was not in place
for regulation and monitoring. India needed proper planning for education,
healthcare, roads, science and technology, agriculture and so on. Our only capital is human resources (HR) but a technologically untrained and semi-literate
HR is a liability. The legislature failed miserably in realising the desires and
aspirations of unemployed youth. The judiciary and media noticed the distasteful emergence of crony capitalism in legislatures. The crumbling system led to
the power shift. Why has this happened? The system of governance that India
inherited from the British was meant to rule Indians, not India. Independent
India adopted the system verbatim, destroying the basic fabric of Indian governance. But there is still hope. We have to create a system which is more
cohesive and accountable. The legislative bodies have to work hard to create a
robust system where the gap between haves and have-nots can be eliminated
and democracy strengthened. If the shift of power from the legislature to the
judiciary and media is not halted, then a new breed of unaccountable satraps
will emerge and the legislature will face an unmanageable crisis, because, as it
is rightly said, power corrupts and absolute power corrupts absolutely.

Download the gfiles app

gfiles inside the government

vol. 9, issue 12 | March 2016



6 Bric-a-Brac

silence in the congress, rss watching

the bjp, indresh in trouble, resource
crunch in congress

Form IV (See rule 8)


10 implementing swachh bharat
36 pushing defence production

1. Place of Publication:
2. Periodicity of Publication:
3. Printers Name:
Whether Citizen of India?:
(if foreigner, state the
country of origin):

Cover Story
14 is the eminence of the
legislature eroding?

4. Publishers Name:
Whether Citizen of India?:
(if foreigner, state the
country of origin):

22 bailing out the banks
24 need for regular audits
28 the new shylocks
State Scan
39 gujarat: anar patels land deal
42 maharashtra: allies at loggerheads
45 Leisure

travel to pachmarhi

46 Book Review
the zee factor

50 Perspective
the elemental fire

51 Stock Doctor
staying the course

57 By the Way

making psu appointments, road

surfaces, doordarshan posting, training
the top rung

Relevant articles
I am writing this letter to compliment
|you on the publication of gfiles, a
monthly magazine, which I receive quite
regularly. The magazine covers a number
of relevant issues with regard to
governance and has filled in a void which
had existed for a long time. I read the
articles in the magazine with lot of
interest and find them quite relevant. I
wish you and the gfiles team all the best
in your future endeavours.
Lt Gen Nirbhay Sharma, Governor,
Mizoram via post

Start-Up India
Apropos the cover story, Bumpy road
ahead!, (gfiles, February 2016) the new
initiative launched by the Prime Minister
will not bear any dividends unless its
implementation is visible. I am convinced
that Discover, Invent and Make in India
will strengthen the roots of the economy.
The writer has explained the ifs and buts
of the new SIAP in much detail. This
helps one get a clear view and also warns
against overexpectations. I hope the
initiative is successful and the countrys
entrepreneurs benefit from it.
SK Mittal via mail

Need for debate

My compliments to the writer for having

gfiles inside the government

vol. 9, issue 12 | March 2016

5. Editors Name:
Whether Citizen of India?:
(if foreigner, state the
country of origin):
6. Name and Addresses of
Individuals who own
the newspaper and the
partners or shareholders:

Holding more than one

percent of the total capital

New Delhi
Anil Tyagi
Not applicable
118 2nd floor, DDA Site 1,
New Rajinder Nagar,
New Delhi-110060
Anil Tyagi
Not applicable
118 2nd floor, DDA Site 1,
New Rajinder Nagar,
New Delhi-110060
Anil Tyagi
Not applicable
118 2nd floor, DDA Site 1,
New Rajinder Nagar,
New Delhi-110060
Anil Tyagi
Abhisshek Tyagi
118 2nd floor, DDA Site 1,
New Rajinder Nagar
New Delhi-110060
Sarvashrestha Media Pvt Ltd
Quality Edumedia Pvt Ltd

I, Anil Tyagi, hereby declare that the particulars given

are true to the best of my knowledge and belief.
Dated. March 01, 2016
Anil Tyagi

such apt observations and comments

(A nation sans security?, gfiles,
February 2016). What then is the
remedy? We need to move beyond this
lament. My view is that it is high time
that the debate on national security and
foreign policy move into the domain of
informed public discussion with
adequate vigour and remain there till we
see results. Media houses will need to
play a major role in this important aspect
of nation building rather than devote
their time predominantly to mundane
issues and stories with their eyes on
sensationalism and TRPs.
Maj Gen (retd) JP Alex via blog

gfiles inside the government

vol. 9, issue 12 | March 2016

lows & highs

Congress in a quagmire
no communication within or without

former Congress legislator from Bihar, who was being wooed by

the BJP, decided to give a last try before he cut his links with the
party he had served and represented: he came to Delhi and met
Rahul Gandhi with his tale of woe. A senior general secretary of the
AICC was also present. After hearing the Bihar leader, the Congress
Vice-President is said to have commented, Congress mein wohi reh
gaye hain jinki aur kahin poochh nahin hai. Taken aback, the man
from Patna pointed at the AICC general secretary and retorted,
poochh toh in jaison ki kahin nahin hai, meri toh poochh hai. He
met Sonia Gandhi and narrated the incident. The Congress President
is said to have queried, Kya party chhorney ka irada hai? He quietly
handed in his resignation. After joining the BJP, he was
accommodated in the organisational structure. And thus the Congress
lost a tried and tested political hand. Dissatisfaction is clearly growing
in the Congress ranks. A majority of the AICC office-bearers, PCC
presidents and CLP leaders prefer Sonia continues though she is keen
to pass on the baton to her son. The chasm created by indecision is
telling on the party. Himanta Biswal of Assam waited for the central
leadership to respond and ultimately quit to join the BJP. Similar was the story in
Arunchal Pradesh. In Chhattisgarh, following the by-election scam, the PCC president issued
showcause notices to Ajit Jogi and his son, Amit. They managed to pull strings in Delhi and the
Pradesh leadership was left looking silly.

Going by the stars

awaiting rss strategy

HE new year of the Hindu calendar, Chaitra Shukladi Vikram Samvat 2073,
begins on April 8. This New Year is very important for the ruling BJP and RSS
dispensation and its leadership. Everybody is looking for the announcement
of some tactical move by RSS chief Mohan Bhagwat, a Konkanstha Brahmin. Top
RSS leaders are meeting at Nagaur in Rajasthan before the festival of Holi.
Generally, no news emerges out from RSS meets unless they want it to. However,
sources disclosed that the milieu within the RSS is not very enthusiastic about
the recent developments. There is intense internal debate on the way the BJP
and the government are being run. But sources also indicate that Bhagwat is in
no mood to disturb the applecart. In private conversation with senior leaders, he
has stated that till September 2016, the RSS is in wait and watch mode. Other topra
ranking RSS leaders dont agree with the chief and are suggesting the need for a
Plan B in case the present set-up does not yield the desired results. Prime Minister
Narendra Modi is, meanwhile, undeterred by all these developments as there is no
one in the hierarchy who can fill his shoes and, second, he directly talks to the RSS
chief. Lets all wait and watch.

gfiles inside the government

vol. 9, issue 12 | March 2016



Caught in the act

ghar wapasi in the rss

HAT does the RSS do when a top-ranking leader is

found engaged in undesirable activities which are not
acceptable to the organisation? They ask him to pack up
and go back home. It is called ghar wapasi in the RSS. Indresh
Kumar, a senior RSS leader who hails from the small town of
Kaithal in Haryana, is under the scanner of the RSS
headquarters. He was looking after the Forum for Integrated
National Security (FINS) and the Muslim Rashtriya Manch
(MRM) and is considered something of a security expert within
the RSS. His statements, activities and involvement with the
Haryana government were found to be out of sync with the
philosophy of the organisation. His nephew, who lives in
Panchkula in Haryana, was found to be using his uncles contacts
in the state for promoting allegedly nefarious activities. Sources
disclosed that even Indresh was found using his clout with Chief
Minister Manohar Lal Khattar to gain various favours for his
cronies. The RSS leadership politely asked Indresh to withdraw
from FINS. His complete ghar wapasi will take time as he is
still looking after the MRM but right now he has not much work
to do for the ruling dispensation.

gfiles inside the government

vol. 9, issue 12 | March 2016

lows & highs

Out of pocket?
congress finances in doldrums

NE cannot believe that the Congress party,

which has ruled India for
53 years, is facing a resource crunch and,
an if leaders of the party are to
be believed, is running on overdraft. There
is a joke doing the rounds
that the Congress is a poor party with rich leaders.
Another peculiar
feature is that most top-ranking leaders are advocates
by profession and
most of them are either Rajya Sabha members or
o are aspirants for the Upper
House. Kapil Sibal, Ashwani Kumar, KTS Tul
Tulsi, Abhishek Manu Singhvi,
Manish Tiwari, Anand Sharma, Palaniappan Chidambaram and Randeep
Singh Surjewala are all advocates. Sources disclose that Kapil Sibal has
been promised a birth in the Upper House
Hou by Himachal Pradesh
Chief Minister Virbhadra Singh. Ashwa
Ashwani Kumar and Manish Tiwari
are trying from Punjab. Chidambaram desires a seat from
Karnataka but his candidature will be personally decided by
Rahul Gandhi and Sonia Gandh
Gandhi. Anand Sharma is in a fix as
he does not have any state for himself, only Rahul
can save him. One party leader
suggested that, to overcome the
resource crunch, all these advocate
leaders can be asked to donate
just 10
1 per cent of their wealth
earned during Congress rule.
Or, the leadership can ask
Kamal Nath to partly share
the burden and the issue
can be resolved; but,
who will speak to Mr 15
per cent?

gfiles inside the government

vol. 9, issue 12 | March 2016

gfiles inside the government

vol. 9, issue 12 | March 2016


swachh bharat ashok lavasa

Those who pollute

should pay
The success of the Swachh Bharat Mission depends on the ability of public
bodies to build effective systems and of the public to adhere to those systems

HE Swachh Bharat Mission is

a flagship programme of the
government that is associated
with the prestige and image of the
country and the self-respect and dignity of Indians. It aims at improving
standards of living, providing adequate infrastructure and reorienting
habits and behaviour to contribute
to clean surroundings in a growing
economy facing wide disparities in

income and lifestyles and struggling

to meet the inadequacies of public
infrastructure. In a large measure, the
success of the programme depends on
the ability of public bodies to build
effective systems and of the public to
adhere to those systems. Improving
public participation in the Mission
and making it sustainable has been a
key priority of the Prime Minister.
There are three primary challenges

Improving public participation in the Swachh Bharat Mission is a key priority


gfiles inside the government

vol. 9, issue 12 | March 2016

associated with the Mission:

1. How to bridge the gap between
sanitation. Niji safai aur sarvajanik
swachhata ke beech ka faasla kaise
meetaya jaye? Unless people become
concerned about the cleanliness of
their surroundings as they are about
personal cleanliness, it is difficult
to expect them to participate in a
Mission that cannot succeed without
their wholehearted involvement.
2. How to introduce the pollutersto-pay principle (Jo kare so bhare
ka siddhant) in waste management.
Increasing urbanisation, rapidly
changing lifestyles and the shift from
durability to disposability in consumer goods is bound to hike the generation of waste and enormously increase
the pressure on public waste management systems. The urban local bodies (ULB) would not be able to cope
with it. To make this arrangement
sustainable, the equation between
those who generate waste and those
who are responsible for managing it
would have to be redrawn. Those who
pollute must pay in proportion to the
pollution load that they cast on public systems. Besides, bulk generators
of waste must participate in waste
management so that they augment
the total resources deployed for waste

Citizens, RWAs and big commercial establishments and other generators of bulk waste would have to ensure segregation at source

management and reduce the burden

on the overstretched ULBs.
3. How to stop treating waste as
a burden, a liability, a nuisance and
start seeing it as a resource. (Kude
ko samasya nahin sansadhan
samjhen.) This would require not
only the return to the basic principles
of three RsReduce, Reuse and
Recycle but also evolve business
models that turn waste management
into a viable economic activity so that
the exploitation of fresh resources is
also reduced.
Considering the enormity of the
problem of waste generation as the
pace of urbanisation increases and
disposable income leads to growing consumerism, the regulatory
regime governing the waste management system will require a radical change. The capital required for
augmenting waste collection and
management infrastructure may not

The capital required for

augmenting waste
collection and management
infrastructure may not
be easily forthcoming in
the near future
be easily forthcoming in the near
future. This would necessitate a participatory model of responsibility
sharing in which citizens, resident
welfare associations, market associations and big commercial establishments and other generators of bulk
waste would have to ensure segregation at source. They would also have
to take on the responsibility of decentralised processing or transportation,
wherever feasible. Bulk waste generators, such as hotels, hostels, banquet
areas and so on, would have to set
up their own facilities for bio-meth-

anation, or composting, so that the

load on ULBs is reduced and waste
management can be done in a costeffective manner.

NE of the oft-repeated criticisms of the waste management

regime is that it is governed by
feeble laws that are implemented
by weak organisations lacking
authority, wherewithal and often
inclination for enforcement. This,
obviously, requires a major overhaul
of the relevant laws, rules and regulations. There is an urgent need to
decriminalise pollution and introduce
civil monetary liability as a deterrent.
Those who violate must compensate society by paying a penalty that
could be utilised for taking remedial
measures. Prosecution leading to
imprisonment should be reserved
for grave violations causing substantive damage to the environment.

gfiles inside the government

vol. 9, issue 12 | March 2016



swachh bharat ashok lavasa

Bio-composting is required to reduce filth in public places and make processing more efficient

Monetary penalty should be severe

and swift, including spot fines. Till
that is done, state governments and
municipal authorities will have to
use existing rules to make the
effective, as has been done by some
municipal authorities.

N order for this new regime to take

roots, it is necessary to understand
the nature and character of the
waste generated and ensure scientific
management that is driven by adopting alternative technologies. Nearly
half of our waste (some estimates put
it at almost 65 to 70 per cent in residential areas) is wet waste that can be
easily converted into ethanol, methane or compost. This can be done at
the household level, the colony level
or the institutional level. This holds
the key to the success of modern waste
management. Nothing short of a biocomposting revolution is required to


gfiles inside the government

vol. 9, issue 12 | March 2016

There is an urgent need to

decriminalise pollution and
introduce civil monetary
liability as a deterrent.
Those who violate must
compensate society by
paying a penalty
reduce filth in public places, reduce
the burden of segregation at the processing level and make processing
more efficient. Once we stop mixing
wet waste with dry waste, it would
become easier to collect dry waste,
whether plastic, glass, electronic, biomedical or construction and demolition waste, and take it for processing.
This will have to be supplemented by
strict implementation of the extended producers responsibility, which
makes them accountable for collecting the waste that the disposal
of the products manufactured or

marketed by them causes. This makes

the producer a stakeholder in waste
management like bulk generators.
All the above challenges, trends
and approaches are equally valid for
the success of the Mission. Massive
efforts in a systematic way are being
made by the government, involving
different sections of society. As we
learn from the mistakes of the past, we
have to convert the drive provided by
the Prime Minister into a sustainable
process that acquires momentum
and efficacy. The tendency for
excessive consumption, the senseless
withdrawal of groundwater and water
flowing from glaciers and springs will
have to be curtailed. The insensitivity
with which precious food is converted
into refuse will have to change. Only
then can we move towards a society
that burdens the earth for its needs,
and not for its unending greed. g
The writer is Secretary, Ministry of
Environment, Forests and Climate Change








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gfiles inside the government


vol. 9, issue 12 | March 2016

b zz co
nd n


nb uz .co
di n uz z.c m
in dia nb uz m
in dia anb buz
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democracy institutions

The emergence of judiciary and media

Testing times
The dilution of the role of the legislature, particularly of the professional
politician, in public life and the emergence of new power centresjudiciary,
media, NGOsaround us have resulted in disharmony. Governance, as a
consequence, has suffered the most

HERE does power to get

things done or power to provide relief and redress or
power to punish and reward, for that
matter, reside in our system today?
Who do you go to complain to when
an apathetic official fails to do his


gfiles inside the government

vol. 9, issue 12 | March 2016

job? How do you stop an uncaring

functionary from pursuing a patently
nasty scheme? Or, how do you wake
up a slumbering bureaucracy or a
distant judiciary to action?
There was a time when you would
have run with your complaint to your
local ruling party or opposition leader,
your ward municipal member, or your

MLA and MP if you had the right contacts or you were resourceful enough.
But what did you do if you werent?
Most likely you took a pen and paper
and shot off a letter to one of them or
maybe, to a top official known for his
sense of duty.
But that was a long time ago. What
about today? Hardly anyone would act

along those lines, for no one today

believes it would be any use or worth
ones while. Instead, a distressed person will snap a shot of the scene and
post it on Facebook or on some such
social media site, and eight times out
of 10 will surely receive the desired
response. On another occasion, one
may as well ring up a TV channel and
have a cameraman with a voice
recorder on the scene within minutes.
The grievance would be featured
countrywide on the channel in no time
with a commentary so acidic that it
would burn a hole in the heart of the
concerned official. The news clip
would in no time send the concerned
official, even the local MLA and MP
and the concerned minister scurrying
about to announce that the needful
had already been ordered, if not
already done.
In yet another matter, the aggrieved
person or complainant may, instead
of calling in the media, choose to move
a court of law, even a High Court or the
Supreme Court, to secure a favourable
order which the concerned official
may now ignore or sit upon at his own
peril. If everything fails, the aggrieved
citizen may very well engage a lawyer
to invoke Article 32 of the Constitution
before the highest court in the land.
And, if the matter is absolutely urgent,
heartrending, revolting or requiring
instant intervention, a court may take
suo motu cognisance of it and call in
the concerned parties for immediate
hearing and necessary action.
All this time it is as if your local
politician, MLA or MP and even the
government official have no role
whatsoever in the matter. If they make
an appearance, it would be only in the
last scene of the last act like the
proverbial police posse arriving in its
hooting jeep moments after the lynch
mob is finished with the carnage.
The executive represented by a

gutless sook will appear last to make

belated amends.
Why so? Simply because over the
last about four decades or so a major
power shift has taken place away from
the legislature and the executive to the
judiciary, the media, the numerous
NGOs and a huge substratum of guntoting politico-mafia operators, the
last of whom appear to be factotums
of politicians but are their head honchos in reality. They have all chipped
away the powers of the legislature. So
much so that the legislature has today
been reduced merely to a technicality
to pass budgets and bills, mostly with-

ply, garbage collection, traffic arrangement, religion, policing, military

recruitmentthat can be said to be
outside the reach of the courts.
No wonder the courts have become
the most powerful and pervasive of
the traditional four estates, often
overshadowing and even countervailing the legislature, the primary estate
without which the other two would
become meaningless. Courts today
order and monitor routine executive
(and all too often even legislative)
actions. Day in and day out, one keeps
hearing of judges issuing all too mundane orders that should lie in the
domain of the executive. Some matters which are otherwise not even the
domain of the executive, such as who
should wear what sort of dress when
going to a temple, are now being adjudicated by the courts. Today, judges
are being called upon to rule not only
on admission to higher medical
colleges but also on enrolments in
nursery schools, and even on such
ludicrous matters as whether or not
hurling abuse is cruelty under a
particular law.

Over the last about four

decades or so a major
power shift has taken place
away from the legislature
and the executive to the
judiciary, the media, the
numerous NGOs and a huge
substratum of gun-toting
politico-mafia operators,
the last of whom appear
to be factotums of
politicians but are their
PILs, suo motu cases,
head honchos in reality
out any debate. As a result, the politician and the bureaucrat have both
been reduced almost to non-entities.
The judiciary and the media have
assumed ever largereven overarchingroles in our public life. The judiciary was always important as a dispenser of justice and interpreter of law
and occasionally as oblique initiator,
though not maker, of new laws. But
today courts are there all over in our
public life. There is no aspect of our
private or public lifesocial, economic, community, family, gender, sex,
food, clothing, education, water sup-

judicial monitoring

HE term judicial activism first

came into use in the US even
before our Constitution was
framed, but no note of the concept or
doctrine was taken by any member
during the debate in the Constituent
Assembly. In India the term came
into use only recently, sometime in
the late 1980s when politicians in
power first began expressing concern
over the growing numbers of public
interest litigations which were seen
as encouraging encroachment by
the judiciary into the legislative and

gfiles inside the government

vol. 9, issue 12 | March 2016



democracy institutions

executive spheres. Even many judges

felt upset with frivolous or vexatious
PILs, particularly with those motivated by narrow private, personal and
commercial interests. However, PILs
have persisted and have now become
an extremely important instrument
for exposing political and bureaucratic corruption and for containing
and correcting executive excesses or
Once PILs had become a legitimate
and commonly accepted valid instrument, suo motu action by courts could
not have remained far behind. Today,
the doctrine of suo motu or suo sponte is as commonly accepted, even
hailed, as is the institution of PILs.
The term and practice of suo motu
most often written as suo moto which
may not be grammatically correct
came into vogue during the first some
years of this decade. A friend of mine
from Pakistan told me in London
some time ago that the term was
picked up by the Indian judges and
media from Pakistan where, he
claimed, the term was already in
use before it became current in
India. Be that as it may, the fact
is that the doctrine is recent in
our country. It has found so
much favour with the public
that today, instead of frowning at it as judicial terminological expansionism, even the
tallest political leaders from both
the ruling and the opposition parties are often heard urging the courts
to take suo motu notice or action in
this matter or that.
Another recent innovation in law
that has further relentlessly hacked at
the power and authority of the politicians, legislature and the executive is
the practice of judicial monitoring of
ongoing police investigations. Like
PILs and suo motu court actions, judicial monitoring of ongoing cases has


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vol. 9, issue 12 | March 2016

also grown manifold. These three

practicesPIL, suo motu court cognisance of cases and judicial monitoringoften clubbed under the omnibus term judicial activism, have
together vastly expanded the role of
the judiciary in our public life. What
began with a PIL under Article 32 in
1979Husnara Khatoon Vs State of
Biharhas now changed the very
character of Indian democracy. It is as
if the constitution itself had been
reconstituted outside Parliament.
How has it all happened? Clearly,
such a vast and far-reaching transformation in judicial practice could not
have come about without humongous
transformations in other spheres of
public life. I would say the judiciary
has only recalibrated its role in
response to changes in the conduct
and character of the other two estates

of our democracy. Judicial activism

has often provoked criticismeven
extremely hostile criticismfrom
parliamentarians, but not from the
public at large. The public has actually hailed judicial activism. The criticism has not daunted even the judiciary. The most unfortunate part of the
scenario, noted a bench in a recent
judgment, is that whenever one of
the three constituents of the state, i.e.,
the judiciary, issues directions for
ensuring that the right to equality, life,
and liberty no longer remains illusory
for those who suffer from the handicaps of poverty, illiteracy and ignorance, and directions are given for
implementation of the laws enacted
by the legislature for the benefit of the
have-nots, a theoretical debate is
started by raising the bogey of judicial
activism or overreach.
The bench clarified that it was necessary to erase the impression that the
superior courts, by entertaining PIL
petitions for the poor (who could not
seek protection of their rights),
exceeded the unwritten boundaries of
their jurisdiction. The judges said it
was the duty of the judiciary (like that
of the legislative and executive
constituents of the State) to
protect the rights of every citizen and ensure that all lived
with dignity. Such a stand by the
judiciary would have been unimaginable some decades ago as, for
instance, during the Indira Gandhi
regime of committed judiciary. Also,
without constant chipping away of the
powers and authority of the executive
and persistent belittling of the legislature due to its own failings we could
not have seen the collegiums system
being turned down so resoundingly by
the Supreme Court last November.
And yet it is simply over-simplistic
to blame the judiciary for overreaching its powers and authority. In fact, it

would be patently wrong. One can certainly cite instances of a court here or
a court there occasionally overextending its reach but in such cases
correctives have been applied quickly
by a higher court. The fact is that it is
not the courts that have snatched
powers of the legislature or the executive; it is most often the legislature
that has ceded its powers to the courts.
Often it is the legislature that draws or
drags to the court matters which
should be sorted out at political level
but are not because of inexperience,
vendetta and venom. The recent Delhi
government case before the Supreme
Court on the citys water crisis in the
wake of Haryanas Jat agitation is a
glaring example of total unwillingness
to work in a democratic system. And
that is exactly what the highest court
observed when it roasted Delhi minister Kapil Mishra on the pit. Why are
you here? the court asked him, What
are you doing here? You should have
been out there working out a solution
with the Haryana government instead
of trying to score a point here in the
court! What a shamea Cabinet
minister of a state government requiring to be scolded like a truant schoolboy! It is such conduct of politicians
that has disparaged and disgraced
them in the public eye.

Ringmaster, censor,
roaster, rescuer,

HE politicians power, reputation and image have been further besmirched by caterwauling anchors of the legions of our TV
channels who often roast, squelch
and kibosh political party spokespersons on their shows as if they

Todays TV anchors act like

public tribunes,
ringmasters, censors and
roasters all dressed in one.
If they get away with all
their ballsy putdowns, it is
simply because the
audience delights in the
fourth degree treatment
meted out to the captives
in the TV studios
were worms. Nothing has soiled the
image of the politician as have the TV
debate shows. The merciless damning and battering, the teasing, taunting and jibbing and ridicule to which
these spokespersons are subjected to
often feels worse than public flogging
in some countries. Sometimes all this
becomes so disgraceful and demeaning that one must switch the TV off for
the sake of ones nerves and sensibilities. Yet, most people feel that that is
exactly what the politicians deserve,
for politicians are looked down upon
by one and all in the country today.
Yet, what gets besmirched in the
process are not a few individual

politicians but all politicians as a class

and, as a politician is commonly seen
as representing a legislature, what
gets disparaged at the end is thus the
legislature itself.
Todays TV anchors act like public
tribunes, ringmasters, censors and
roasters all dressed in one. If they get
away with all their ballsy putdowns, it
is simply because the audience delights
in the fourth degree treatment meted
out to the captives in the TV studios.
No one can dispute that the constant
exposure to the mass media has pulled
politicians down many notches on the
political totem pole during the last
word to append to a politicians name
today, and politicians know it well.
They often bemoan that the very word
politician has become anathema and
even a hate word among the common
people but they just do not know what
to do about it. They know the public
despises them but just cannot do
anything about it because no system
can run without their class. What is
interesting is that the people know
that too. That is why they come out in
such large numbers to cast their votes
at election time. Well, they seem to
say, We cant do without them but

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vol. 9, issue 12 | March 2016



democracy institutions

we certainly can kick them in and out

elections, why not enjoy seeing them
roasted on TV channels or disparaged
in courtrooms. The pleasure is
vicarious and reminiscent of Roman
ludi circences but it is, nevertheless,
fun and some solace too.

Instant messaging,
redundant politician

URING the last three years

social media has emerged as yet
another power-grabber. Young
people were hooked on the social
media even before, but it is Narendra
Modi who first made social media
mainstream. So much so that now
even TV channels have sat up and
are constantly monitoring what is
trending there. A lot of news now flows
from social media to TV channels,
from TV channels to news portals, and
from news portals to the print media.
The print media is actually becoming
increasingly redundant, if not
irrelevant, as far as news is considered.
Politicians now monitor smartphones
for latest news and spend more time
fiddling with these than they do with


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vol. 9, issue 12 | March 2016

Today courts are there all

over in our public life.
There is no aspect of our
private or public life
social, economic,
community, family,
gender, sex, food,
clothing, education, water
supply, garbage
collection, traffic
arrangement, religion,
policing, military
recruitmentthat can
be said to be outside the
reach of the courts

their morning newspapers. The more

resourceful of them have teams of
young e-savvy monitors following
every bit of social news and passing
them on quickly to their masters for
necessary action, if any. So, whoever
today has a complaint against a
policeman, a municipal official, a goon
or a goonda rushes to the social media
or a TV channel and not to an MLA or
an MP or a senior official because he
knows how little say in the matter they
have. A complaint through TV reaches
the concerned authority faster than
one raised through a legislator. TV,
assisted by the social media, has now
become the real champion of social
causes, of the poor, the oppressed and
the victimised.
Even the police and the
want the news of an incident
to first appear on a TV channel to give
a justi
justification for their punitive action
or reward
as they fear their action
may otherwise be misunderstood
as partisan
or favouritism by the
comm people.
A a result, the role of the
and, consequently, of
the legislature as a communicator
an aggrieved citizen
an a government authorityan
There was a time when
people used to throng the houses of
with bunches of questions
and with
w requests to get their matters

of urgent importance raised in the

assemblies and Parliament. Question
Hour, Call Attention motion and
Special Mention were once the
only instruments for venting public
grievances. Today, hardly anyone
bothers about them. I wonder how
many of the young generation
are even aware of such legislative
instruments. These instruments have
little relevance to the times we live
in where every grievance demands
instant redressal. An Assembly or
Parliament that meets once every
three or four months, often for only
a few weeks which are all so often
wasted away in riotous wrangling
over non-issues, cannot meet the
needs of an instant age. Little wonder
then if the legislature seems no longer
germane to our lives today!
The reason why affairs have taken
this turn is basically that the politicians during the last some decades
have failed themselves, the country
and the people. Horrendous corruption, shameless loot of public money,
appalling self-aggrandisement, extreme arrogance of power, persistent
misuse of authority, indifference to
the problems of the suffering people,
unwillingness to take unpopular decisions, timidity in the face of obstacles
and brashness in committing oppression,
and many other

similar issues, have demeaned the

profession of politics. Power cannot
stay for too long in such hands in any
system, particularly in a democracy
like ours.

Parallel power centres,
antagonists, foreign

GOs came to be grafted onto the

Indian socio-political system
sometime in the 1980s from the
British Quangos (quasi-autonomous
which were first encouraged by the
Labour Party there mainly to foster
its fringe organisations by providing
government funding. Early organisational support and funding were
ploughed in by numerous foreign
organisations. Various American
agencies of rather doubtful origin,
flush with funds from intelligence
agencies, were the first on the scene.
The Peace Foundation was, perhaps,
the first. The Ford Foundation was yet
another. In my time as a Leftist newspaper reporter, we hunted organisations funded by these organisations.
But todays
today s Leftists feel no embarrassembarrass
ment in tapping them for funds. But
that is a different matter. NGOs

were not called so those days but voluntary organisations, and were fewer
in number, limited in scope, short of
funds, and not as corporatised as the
ones we have about us today.
Todays NGOs are different. One,
they are numerous in number. Two,
theyat least, large numbers of
to enable their head honchos to travel
of times a year and stay deluxe during
their travels. Third, they have large
domestic donors too, most of them
big corporates whose vested interests
they often serve. Four, they function
highly paid staff, hire top lawyers
when needed, frequently dine and
wine media bosses, presenters and
anchors, and often load them with
costly gifts. (I must here admit that I
their largesse.) And, last but not least,
as the saying goes, some of them are
so resourceful that they even hire
lobbyists, PR agencies and imagemakers when they so need. It would
be incorrect to paint all or every NGO
with the same brush, but the picture
I have painted is true of many, if not
most, of those one comes across in
cities like Delhi.
These NGOs have power in that
they mould public opinion not only
for causes they espouse but also for or
against political parties they happen
They wield power in that they can
rouse the people for or against a
government proposal or project and
stall or hastenmostly stallwork
on government schemes by dragging
matters to court or by organising
agitations. The ruling regimes often
claim that this is done at the behest
of vested interests, both domestic and
foreign. This may not be true always,
but often is. Many government

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vol. 9, issue 12 | March 2016



democracy institutions

schemes have been frustrated by such

agitations and court cases launched
by various NGOs. To that extent,
the power of the legislatures and the
executive has been curtailed.
The balance of power and its
structure in the system have both
changed drastically in other ways
too. The chess board is no longer
the same as we had hitherto known.
Neither are the pieces of the game the
same, nor the moves. Actually, the
very theory of the game is no longer
the same as before. These changes on
the power chess board have not come
about overnight. They had been in
the making a long time. The earliest
sign appeared in the late 1960s when
the Congress monopoly on central
and state power centres was broken
under the onslaught of many new
social and political alliances, which
eventually fragmented the unitary
power system. As a result, today
nearly half the country is ruled by
political parties that are really not
public political parties but private
parties of individual leaders, like
what once used to be called private
armies. This power shift has cracked
the system and, though different types
of coalition arrangements have been
tried to keep the ramshackle federal
structure to move on, a new, effective
and result oriented balance of power
is yet to emerge.

Historical, religious

HE early years of the republic

began with the idea that what
should matter now is not the
past but the future, not history but
economic development, not religion
but science, not orthodoxy but a
new openness, and so on and so
forth. We had groups and parties with


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vol. 9, issue 12 | March 2016

sharp edges on both the Right and

the Left of the political spectrum,
but their brambly tips were soon
smoothening out.
Today, however, it all feels so
divergently different. Thought has
fallen by the wayside and history,
distant history, almost from as far
back as the stone age, has pushed
thought aside and taken over the
centrestage of the nation. The belief

Horrendous corruption,
shameless loot of public
money, appalling selfaggrandisement, extreme
arrogance of power,
persistent misuse of
authority, indifference to
the problems of the
suffering people,
unwillingness to take
unpopular decisions,
timidity in the face of
obstacles and brashness in
committing oppression,
and many other similar
issues, have demeaned the
profession of politics
that thought could mould our outlook
and attitude towards history has faded
out and it now seems history must
remain resurgent. Science is all about
us, of course, but no longer in the
mainstream of national consciousness
hardly heard in any circle now. Over
the last some years, religions have
become increasingly rivalrous. Modis
strident style of politics is, of course,
one reason, but cannot be the only
reason. Possibly, his stridency itself
is the result of a certain intolerance
that had been building in the system

earlier. Altogether, history and

religion have become the real moving
powers today.
There are yet other ways in which
power and authority once centralised
in the hands of the legislature and
the executive of the day have been
eroded or fragmented by the creation
of numerous different tribunals,
commissions, authorities, and so
on. The utility of these innovative
instruments has not been studied or
assessed at any length or in depth
yet. They seem to be almost free from
any detailed parliamentary scrutiny,
though they are funded from the
consolidated fund approved by it.
It will be interesting and useful
to study this power shift in the
system, the dilution of the role of
the legislature, particularly of the
professional politician in public life,
and the emergence of new power
centres around us. All this is relevant
because politics and the political
themselves in ways whose far-reaching
implications will affect the future of the
In the meantime, governance has
suffered at all ends and in all spheres
of national life. The predicament of
the executive is, perhaps, the worse
today. It is true that bureaucracy
clear-cut rules, but clear-cut rules
alone are not enough for it to work
effectively. Bureaucrats and their
decisions and actions are also affected
system from different quarters. If
these impulses are not in harmony
or synchronised at some higher level
of thought or theory, bureaucrats are
sure to get disoriented like a robot
whose wiring gets tangled up. That
is what seems to have happened as a
result of the power shift in the system
described above. g

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vol. 9, issue 12 | March 2016


npa imbroglio

A huge


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vol. 9, issue 12 | March 2016

In this age of Whatsapp and Twitter, many of us

may have read a story wherein a gang of dacoits
loot a bank and one of the younger members of the
gang wants to count the booty there and then in the
bank itself. But he is wisely advised by an elderly
dacoit that they need not count it there as it will only
increase the risk of being caught, and also they do
not need to count it at all as the entire media will
blaze the amount robbed in no time and they can
simply stay cool and watch various TV channels
headline the story. But the elderly robber is in for a
rude shock when he watches TV channels quoting the
amount at `10 crore wherein repeated counts of the
booty confirm it to be only `2 crore. He soon realised
that the remaining `8 crore had been tricked
away by a smart coterie of bankers themselves;
the crony capitalists, the law-enforcing agencies,
accommodative media and politicians patronising
all of them. The recent NPA crisis of public sector
banks is in fact such a story playing out in the Indian
banking system and it is set to worsen and pose a
real threat to the financial stability of the country,
thereby endangering even national security.
This, primarily, was the reason a bench of the
Supreme Court, headed by Chief justice TS Thakur
himself, took suo motu cognisance of the matter,
based on a story in a leading daily on a massive
write-off of bad loans by public sector banks and
ordered the Reserve Bank of India (RBI) to share
with it the names of all defaulters who owe over
`500 crore and continue to lead a lavish lifestyle.
More than the RBI Governor, Raghuram Rajan,
Prime Minister Narendra Modi should be worried
about the mounting bad loans in the Indian banking
system, a majority of which is in the books of staterun banks. This is because it can potentially derail
the fiscal arithmetic of his government, which is
walking a tightrope in fulfilling its commitment of
fiscal consolidation. Indian banks require around `3
lakh crore to meet the Basel-III norms (a target that
otherwise is extremely difficult to achieve due to
multiple factors), while the government has so far
committed only `70,000 crore. However, with the
recognition of and provisioning for NPAs that may
well be more than `7 lakh crore, the amount that the
government will need to meet Basel-III norms is any
bodys guess and will be an unachievable target in
the near future. The dwindling investors interest for
these banks in the market has further made the task

almost impossible to achieve. Also, the NPAs, as a

percentage of net worth, are well over 50 per cent
for the majority of the state-owned banks. If some of
the sectors, such as steel and power, where
impairment of large parts of loans is yet to be
assessed whereas loan growth continues to be high,
and those of some big corporate groups are taken
into account, the NPAs may be much more than
what most estimates now gauge. This will further
increase the recapitalisation amount needed for the
public sector banks.
The matter that needs to be probed thoroughly is
how public sector banks and financial institutions
have been advancing such huge loans without
proper guidelines or an adequate loan recovery
mechanism, thereby putting a huge burden on the
public exchequer. Corporate credit accounts for a
majority of the bad loans, as compared to housing
loans that have the lowest NPAs at less than 1 per
cent. The corresponding figure for retail loans is less
than 3 per cent while it is estimated at 8 per cent in
case of farm credit. The highest delinquency is in the
corporate loans category at 8-12 per cent. In the case
of individuals, banks, through the Credit
Information Bureau (India) Limited (CIBIL), are
able to check the total amount of loans that a person
has borrowed, what is his EMI, his credit history
and so on. It is not only surprising but shocking as
well that there is no similar database which covers
companies' loan portfolios and track records despite
the fact that the amount of corporate loans is very
high as compared to individual loans. It is due to the
higher losses in such loans that interest rates on
retail loans (that have lowest NPAs) and other loans
are kept high. Finally, Finance Minister Arun Jaitley
announced in his Budget speech that such a database
will be collated. Unless the basic underlying causes
that have resulted in the present crisis in the public
sector banks are addressed, the taxpayers money
will continue to be squandered like this. These
include the issues of governance, ownership and
political interference and allowing the public sector
banks to function at arm's-length distance, as
prudent and viable commercial entities. Even the
opaque functioning of the Corporate Debt
Restructuring (CDR) Cell, that has supported
dubious firms, needs to be probed thoroughly, says
Dr GS Sood. MG Devasahayam and
Alam Srinivas analyse.

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vol. 9, issue 12 | March 2016


npa imbroglio

Time to
the talk
The RBI has to conduct regular audits to prevent another bout of crony
capitalism that can further damage the balance sheets of the banks

FTER Swachh Bharat, it is now

time for Operation Swachh
Banks. The Reserve Bank of
India (RBI) has initiated a massive
nation-wide campaign to clean up the
balance sheets of banks, especially
the state-owned ones, which are saddled with huge amounts of bad loans,
or NPAs (Non-Performing Assets).
On the hopeful side, which is loudly
cheered by the social media, are the
banks efforts to sell the assets of
wealthy business persons, who flaunted their money and luxury assets, but
whose companies failed to repay their
loansagain and again and again.
The name of this game is shame.
The idea is to recover whatever money
the bank can because the companies
cannot repay and, in the process,


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vol. 9, issue 12 | March 2016

make the entrepreneurs go through

public disgrace. In addition, a few
banks like the Punjab National Bank
(PNB) publicise the names of the
willful defaulters, that is borrowers who can repay but dont. Legally,
their loans havent been declared as
NPAs and written off, that is, they
will never be repaid. In its latest list,
the PNB claimed that it had 904 willful defaulters, and they owed almost
`11,000 crore to the bank.
On the pessimistic side, the central
bank forced the banks to truthfully
reveal their NPAs, and not hide them,
and adjust it against their profits. In
the last quarter results, several public sector banks incurred huge losses,
or witnessed huge dips in profits
because of this pressure. For instance,
in its October-December 2015 quarter, the State Bank of India kept aside

almost `8,000 crore as contingencies, almost double the previous

allocation. The banks profits plummetted to just over `1,100 crore in
the December quarter, a 70 per cent
slump from the previous one.
Several experts praise Raghuram
Rajan, RBI Governor, for the manner in which he has twisted the
banks arms to force them to clean
up their balance sheets. They are
excited about the powers granted to
the banks to convert their loans into
equity, become majority shareholders in companies whose loans became
bad, and either sell off the assets or
effect management changes later. In
the case of the Vijay Mallya-owned
Kingfisher Airlines, a consortium of
banks and other stakeholders have
begun to sell Kingfishers assets,
which include aircraft and real estate.

Others feel that Rajan has gone

overboard. The process can weaken
the banks and many of them can go
under. Since the government will not
allow this to happen, it will merge
the weak banks with the strong ones,
a move that will impact the banks
whose balance sheets are robust.
These analysts think that the central
bank needs to treat each case separately to see which are the serious
businesspersons, who have inadvertently got into trouble, and those who
deliberately took the wrong decisions.
One shoe and one rule cannot fit all.
More importantly, the initiatives
to improve the banking sector, which
is saddled with bad loans of 6.6 per
cent of their overall loan portfolio,
estimated Credit Suisse, are lopsided.
Experts contend that un-provided
NPAs are 30-75 per cent of the capital
of state-owned banks, and un-provided stressed loans, which may turn bad
soon, even higher at 65-200 per cent.
This implies that the banks will need a
huge infusion of cash by 2017 and this
will pressure government expenditure and impact the annual fiscal
deficits in the near future. The situation will turn worse before it goes out
of gear, if Rajan and Co. dont change
their approaches and mindsets soon.
Why target only big defaulters?
Whether it is the RBI, the finance
ministry and the banks, the talk is
invariably about how to deal with the
NPAs of large companies, or those
who have enormous personal wealth
but allow their companies to incur
huge losses through gross mismanagement. Thus, the focus is always
on individuals like Mallya, who
flaunt their personal aircraft, yacht,
and beachhouses, but throw up their
hands when it comes to paying back
the banks loans. So, they become the
target of anger, and quite legitimately

too. But this is like capturing only

half the picture, which can lead
to problems.
The banks need to target all the
willful defaulters and even those companies or individuals whose loans are
likely to turn bad in the near future.
There is no place for discrimination
for several reasons. One, the amounts
owed by small and medium businesses are substantial, as is evident from
the PNBs latest list of willful defaulters. None of them falls into the big
business category. Most of them are
little-known players, but the amounts

Several experts praise

Raghuram Rajan, RBI
Governor, for the manner in
which he has twisted the
banks arms to force them
to clean up their balance
sheets. Others feel that
Rajan has gone overboard.
The process can weaken
the banks and many of
them can go under

they owe to the bank are in hundreds

of crores of rupees. Most important, it
is easier to pressure them, rather than
large businessmen.

HIS change of focus is critical

once the government, as promised, introduces a Bankruptcy
Act in Parliament. This, claimed
Finance Minister Arun Jaitley, would
allow companies to shut down easily,
and enable the lenders to easily initiate a process to recover their monies.
However, as experiences from developed nations prove, small and medium businesses are generally keener to
declare bankruptcy. Hence, the banks
need to focus on large as well as other
businesses, so that they can take corrective and proactive actions in cases
of bankruptcy.
Change in management
Last year, the RBI allowed banks to
convert their loans into equity, hike
their combined stakes in a defaulter
company to 51 per cent, and take over
the management. Unfortunately,
there are several caveats that may
hinder the use of this power. One, it

An alarming position
1. 27 state-owned banks have written off `2.77 lakh crore ($1 billion) of bad
loans in the last 10 years.
2. Out of this, `1.14 lakh crore ($16.8 billion), or 40 per cent, of the total bad
loans were written off during the last three years over FY 2012-15.
3. A further `52,227 crore is expected to be written off in FY16 (India Ratings
4. This would take up the total bad loans to `3.29 lakh crore ($48 billion).
5. The proportion of stressed assets surged to 17 per cent for public sector
banks while for private banks it is 6.7 per cent and for foreign lenders, 5.8
per cent, as of September 2015. So the PSU banks' asset quality is the
worst amongst the lot (almost three times worse than their peers).
6. Among the BRICS (Brazil, Russia, India, China, South Africa), India's NPA
rate is the second highest after Russia, and this year it may surpass Russia
to top the list.

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vol. 9, issue 12 | March 2016


npa imbroglio

applies only to new loans that may go

bad in the future, and not to the existing stressed loans. The only window
of opportunity for existing debt is if
there is a provision to do a debt-equity
swap in the original loan agreements.
Thus, the banks can use this power for
the fresh loans that they give now.
Two, most bankers feel that the
banks have no expertise to manage
companies. They can assess businesses, become the watchdogs and
insist on corporate transparency, but
their managers dont possess entrepreneurial, leadership and managerial skills. Hence, even if they own a
majority in a stressed company, they
will need to find the right managers to
run it. This is not an easy task; moreover, it is time-consuming and can hurt
the financials of the company even
more. Whenever lenders have taken
over companies, they have largely
failed because of their attention on
how to get their money back rather
than how to put the company back
on track.

HREE, it is counter-intuitive to
realise that it is not
easy to sell a company which is already
in trouble. And when it is
apparent that the lenders are
desperate to sell to recover their
monies, the offer price is likely
to be hugely discounted, and
much below the market price.
Most contend that taking
over a company and finding
a lucrative buyer is tough,
and may suck off crucial
management bandwidth of
the banks. It may turn out to
be an impractical proposition.
Public sale of assets
The same is true of sale of
assets of companies that have


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vol. 9, issue 12 | March 2016

defaulted. Potential buyers know that

the lenders are desperate to sell, so
they offer low prices unless they are
keen to buy. Experiences show that
normally the lenders are unable to
extract the market prices, and they are
happy that they do get some money
back. In the case of Kingfisher, one of
its planes was sold as metal scrap in
pieces and was purchased by a scrap
dealer. This shows that if there are
delays in the sale of assetsgenerally

The RBI has to realise that,

while it may be good for it
to play the carrot-and-stick
policy, the banks can use
the central banks lollipops
to hide their stressed
debt. This has happened,
and is happening, with
the Corporate Debt
(CDR) scheme

because no one ups the floor prices

the assets lose value really fast.
So, it is a Catch-22 situation for the
lenders. They have to act fast, correctly estimate what the market will pay,
and then conduct the auction quickly.
In most cases, this doesnt happen
because of the lack of expertise within
the banks and the inherent bureaucracies that delay the process. For
example, it took over three years for
the consortium led by SBI to merely
take over Kingfishers Mumbai property and put it on the auction block.
Thus, the bankers need to adopt
a comprehensive approachconvert
debt into equity if they can do so,
acquire majority stakes, effect management (not ownership) change, that
is, they get in a new team to manage
the company and not sell their combined stakes, change the fortunes of
the company, and then either recover
their loans or get the new management to sell the assets, either piecemeal or through a stake sale deal. For
this, the banks have to get in experts.
One of the options is to tie up with
a slew of private equity players
or investor-consultants,
whose job is to take over
managements and turnaround firms. There are
several local and global players
who do this efficiently and also
hike the value of the assets over
a short period. They can then
help the bankers to sell the assets
within a few years. America, in
the 1980s, was full of management experts who conducted
leveraged buyouts and made
huge sums when they finally
sold the assets.
Policy loopholes
The RBI has to realise that,
while it may be good for it to play
the carrot-and-stick policy, the

What needs to be probed

1. Is this another coal/2G scam in the making? Have
corporate houses benefitted from this largesse in the
same way as in the coal and spectrum allocation scams?
The amount of loss, `3.29 lakh crore, so far is much more
than the `1.86 lakh crore in the case of the coal scam
and `2 lakh crore in the 2G scam. Further, this is actual
loss and not opportunity loss as in the case of the coal
and 2G scams.
2. How much of the above loans were secured? What
efforts were made to recover money owed through sale
of such security and how much was recovered?
3. Were proper rules followed while disbursing and
monitoring these loans? Have rules been flouted to
help promoters siphon off taxpayers' money? Or, were
bank officials hand-in-glove? The Bhushan SteelSyndicate Bank case and the Central Vigilance
Commissioner (CVC) recommending action against
officials of 26 banks, which together provided `2,650
crore to Zoom Developers, are pointers to the fact.
There have been glaring instances of diversion of funds
to unrelated businesses and frauds.
4. How and why has such a huge pile of bad loans accrued
in the system? How much of it can be attributed to the

banks can use the central banks lollipops to hide their stressed debt. This
has happened, and is happening, with
the Corporate Debt Restructuring
(CDR) scheme. It had the right intentions to allow companies that got into
financial troubles because of external
reasons the leeway to get out of their
binds. But the bankers and businesspersons, with political support,
got together to protect the potential
defaulters. One of the biggest beneficiaries of CDRs was Mallya. Then
the RBI allowed banks to roll over
loans given by high gestation period
infrastructure after every five years
to another bank or consortium. The
logic was simple: banks lend to projects that make money after years, and
if something goes wrong like unexpected delays, the money gets stuck.

economic downturn? How much of it has happened

due to regulatory aspects/loopholes?
5. What about fixing responsibility? Is it big and powerful
promoters who use system loopholes to their advantage,
at times with active political patronage, or the
unprofessional and callous public sector bank
managements? Should the naming and shaming of
scrupulous and willful defaulters not be done?
6. Are our banks adequately equipped with technical
expertise, policy implementation and coordinated
efforts within themselves? Promoters often inflate value
of security or collateral offered to cover their part of the
equity, making the projects more risky from inception
and banks indirectly finance such equity. This also leads
to much lower recovery in the event of default. The
government-owned banks neither have a standard risk
assessment mechanism nor any coordination and credit
information exchange amongst themselves; the result
is that a loan rejected by one bank is passed by another.
Bank officials of the public sector banks lack technical
expertise and skills and there is a huge gap between
pay packages of private banks compared to public
sector banks that hampers in attracting good talent.

The roll-over enables the bank to

treat it as fresh loans, which can only
go bad after a few years. Obviously,
this became a convenient way for the
banks to help businesses. The RBI
needs to monitor each such roll-over
deal that happens in the future to
prevent blunders.

VEN the latest policies that the

lenders can take over management and sell the assets of NPA
firms can be, and is being, misused
and manipulated. The RBI has recently warned that the banks have to carefully check the backgrounds and antecedents of the buyers. The reason:
there were cases when the original
owners, who defaulted on the loans,
bought their own assets through front
and benami companies. Thus, they

got the assets back at a discount, and

were rid of the loans too. This can
even happen in cases of management
takeovers. The banks cannot prevent
them; more important, like in the
past, some of the errant banks can act
together with the corporates.
Clearly, tackling NPAs and stressed
loans isnt easy. Banks have restricted
skills and cannot manage companies
or sell assets. They need to form a
panel of individuals and specialist
firms that can help the lenders to
achieve their objectives. In addition,
the central bank has to keep an eye on
the banks and conduct regular audits
to prevent another bout of crony capitalism that can further damage the
balance sheets of the banks. Rajans
job has only just begun. He has
spoken, now he has to act. g

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npa mg devasahayam

Non-Performing Assets

Bankers heist?
There is a distinct
difference in how the
banks come down heavily
on small borrowers and
treat the big defaulters
with kid gloves

N economic and commercial

parlance, banking is a kind of
business different from others.
In general terms, it is accepting
and safeguarding money owned by
other individuals and entities, and
then lending out this money in order
to earn a profit. Banking institutions,
therefore, should judiciously combine
two distinctly different functions
one as public trustee and the other
as profit-making business entity. At
the core of its function is the
management of its assets in a prudent
and profitable manner.
The way they are managing their
assets, Indias public sector banks
(PSBs) are failing in both functions. In
the event, the Non-Performing Assets
(NPAs) of these banks have become
the talk of the town. According to
the Reserve Bank of India (RBI)
estimates, the top 30 loan defaulters
alone currently account for one-third
of the total gross NPAs of PSBs.
The current debt-burden of just 10
corporate entities amounts to a staggering `7.8 lakh crore: The Anil Ambani-led Reliance Group `1.25 lakh
crore; Vedanta Group `1.03 lakh
crore; Essar Group `1.01 lakh crore;


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vol. 9, issue 12 | March 2016

Adani Group `96,031 crore; Jaypee

Group `75,163 crore; JSW group
`58,171 crore; GMR Group `47,976
crore; Lanco Group `47,102 crore;
Videocon Group `45,405 crore and
GVK Reddy `33,933 crore.
Though the Finance Minister has
reportedly set aside `70,000 crore
this year to service corporate NPAs,
it is not known how much of these bigguns dues falls in that category. It is
because the banks, the RBI and the
government are very reluctant to declare the details of the biggest defaulters. They willingly take shelter under
Section 45E (1) of the Reserve Bank of
India Act, 1934, which stipulates that
any credit information contained in
any statement submitted by a bankLQJFRPSDQ\VKDOOEHWUHDWHGDVFRQdential and shall not be published or
otherwise disclosed.
In an order passed in 2011, the

Central Information Commission

directed the RBI to reveal publicly
the names of the top 100 industrialists who defaulted on loan repayments to PSBs with a view to put
pressure on such persons to pay their
dues. The RBI moved the Delhi High
Court, seeking quashing of this order
on grounds that it went against the
cardinal common law principle of
bankers duty of confidentiality and
against the basic tenets of banking.
But this common law principle does not seem to apply to small
defaulters. About four years back,
when rumblings of the bad-loan saga
were just beginning to surface, some
PSBs placed advertisements in daily
newspapers with photographs of individual defaulters alongside a stern
warning that if they failed to respond,
photographs of their guarantors
would also be published. SBI, Indias

NPAs of 11 major PSBs is revealing:

State Bank of India
Bank of Baroda
Bank of India
Punjab National Bank
Indian Overseas Bank
Central Bank of India
UCO Bank
Bank of Maharashtra
Dena Bank
United Bank

Gross NPA
(` crore)
19, 615
14, 932

% of Loan

largest bank with NPA of `72,792

crore, targetted a woman with a petty
outstanding loan of `52,264. Other
banks followed suit. But none of them
touched the big guns!

HE methods these banks adopt

to recover small NPAs far
surpass that of the legendary
Shylock of The Merchant of Venice.
Referring to this phenomenon, RBI
Governor Raghuram Rajan had this
to say: Law becomes more draconian
in an attempt to force payment. The
SARFAESI Act of 2002 is very procreditor as it is written.Its full force
is felt by the small entrepreneur who
does not have the wherewithal to hire
expensive lawyers or move the courts,
once again escapes its rigour. The
small entrepreneurs assets are repossessed quickly and sold, extinguishing
many a promising business that could
do with a little support from bankers.
Here is a real-life narrative of a

The methods banks adopt

to recover small NPAs far
surpass that of the
legendary Shylock of The
Merchant of Venice.
Referring to this
phenomenon, RBI Governor
Raghuram Rajan had this
to say: Law becomes more
draconian in an attempt to
force payment...
Small Scale Industry (SSI) near Chennai to substantiate what the RBI Governor said. A term loan was received
by the company from the Tamil Nadu
Industrial Investment Corporation
(TIIC). A PSB provided working capital/bill discounting assistance of `15
lakh in 1988 against the hypothecation of raw materials, stock-in-proFHVVDQGQLVKHGJRRGV$VDGGLWLRQal security, the bank surreptitiously

retained the title deed of the residential house belonging to the guarantor.
The fully set up factory commenced production in February 1989
as captive unit of a large industry
manufacturing commercial vehicles
and engines and a major supplier to
Defence Forces. However, the captive business of about `50 lakh per
annum unexpectedly collapsed due
to severe budgetary cuts imposed in
the Defence Ministry. The PSB was
immediately put on notice and proposal for diversifying manufacturing
activity was submitted with request to
enhance working capital limits. Had
those proposals been sanctioned, the
SSI would have diversified the product range, marketed the products
and become viable and profitable. No
support whatsoever came and the SSI
folded up.
After killing the SSI, in September
1998, the PSB filed an application in
the Debt Recovery Tribunal (DRT)
under the Recovery of Debts Due to

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npa mg devasahayam


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npa mg devasahayam

Banks and Financial Institutions,

1990 (RDDBFI Act), claiming a sum
of `97,33,574, and seeking its recovery by attaching and selling the residential house. This property was coveted by a certain senior bank official,
who had expressed it openly.
So, when the RBI issued guidelines on July 27, 2000, for One Time
Settlement (OTS) of dues from SSIs,
this PSB was not really interested in
complying with it. After several letters, the bank intimated an arbitrary
figure of `38.68 lakh. On its review by
a special recovery group, comprising
two General Managers and a Zonal
Manager in December 2001, dues
were brought down to the correct
amount of `20.05 lakh as per RBIs
OTS norms; `5 lakh was immediately
paid as down payment with a request
for early confirmation. The confirmation never came because senior
bank managers were not propitiated
with bribes!

HE PSB turned Shylock on

September 25, 2004, and issued
a notice under Section 13 (2) of
the Securitisation and Reconstruction
of Financial Assets and Enforcement
of Security Interest Act, 2002
(SARFAESI Act), claiming a massive sum of `3.27 crore as dues to be
paid within 60 days. The bank got the
residential house attached, put up a
notice of possession and another for
Tender Sale, naming and shaming
the entrepreneur. Prospective bidders went and inspected the house.
The Debts Recovery Tribunal (DRT)
prevented this foul game in time by
issuing a stay order. On December
20, 2006, the Tribunal quashed all
coercive actions of the bank under
SARFAESI Act as invalid and illegal.
On August 3, 2007, DRT passed
final orders on the PSBs application
to determine the dues. Despite dis-


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vol. 9, issue 12 | March 2016

Bankers are seeking more

arbitrary powers that
cannot be challenged. They
are already the prosecutor,
jury and judge as far as the
borrowers are concerned.
Now they want to be
executioners as well
covery of documents ordered by the
DRT, the bank concealed the settlement at `20.05 lakh. Even the oftrepeated settlement at `38.68 lakh
was denied by the PSB. But DRT had
proof and, therefore, decreed this
amount as due with PLR of interest
at 8 per cent, recording the undertaking given by the banks counsel. The
entrepreneur deposited `51.14 lakh
in DRT. This should have given a quietus to the whole matter, allowing the
entrepreneur to breathe easy.
Not to be. After immediately appropriating the full amount, the PSB went
on appeal before the Debts Recovery
Appellate Tribunal (DRAT), Chennai,
with all kinds of falsehood, intention-

ally giving the wrong address for service to the entrepreneur. The bank
retracted from the undertaking given
by its counsel before the DRT. The
Appellate Tribunal set aside the DRT
order on January 28, 2009, by relying on a totally irrelevant Supreme
Court judgment. The copy of this
order was released after four months,
just a day before the Presiding Officer
retired. Immediately thereafter, the
Bank moved application before the
DRT for a Recovery Certificate for the
full amount with further interest and
costs, that is `16,849,192. Behind the
back of the borrower, the DRT issued
Recovery Certificate for this amount.
The DRTs RO immediately issued
Demand Notice for the amount on
July 7, 2009, summoning the entrepreneur on July 24, 2009, at 11.30
am to initiate the recovery procedure. Fortuitously, a writ pettion in
the Madras High Court, against the
DRAT order, came up for hearing on
the same date and a stay was obtained
at 11 am. Shylock sought revenge by
activating the SARFAESI notice of
May 7, 2007, claiming `5.07 crore as

`25,000 crore has been allocated in

Union Budget 2016 for recapitalisation
of banks

rowed the money or had stood guarantee lose all dignity and perish in
the process. For they have the laws,
the State and the judicial system to
propitiate, protect and pamper them.
Let us see how this happens. When
an entity or an individual borrows
money from the bank and delays repaying the borrowed money, banks
classify them as defaulters and initiate actions for recovery of loans.
The special enactments empowering
proceed against the defaulters are the
dues and appointed an Authorised
Officer to take possession of and sell
the residential house.
This would have happened but for
the HC rendering its judgment, setting
aside the DRAT order and castigating
the bank and its officials. The HCs
Order Copy was released on April 9,
2010. The 90-day limitation for PSB
to file a special leave petition (SLP)
in the Supreme Court expired on July
8, 2010. The HC order was clear and
there was no scope for any appeal.
The senior counsels of the bank had
given their opinion against filing an
SLP. But the banks senior managers
overruled these opinions and filed an
SLP after a delay of 24 days.
Despite this grievous flaw, the SC
condoned the delay, entertained the
SLP and issued a notice to the entrepreneur. After 12 listings, 28 adjournments and over four years of anguish,
SLP was finally disposed of by the SC
on October 14, 2014, with a crisp twoline order: Heard learned counsel
for the parties and perused the relevant material. We do not find any
legal and valid ground for inter-

ference. The Special Leave Petition is

dismissed. Thus came the closure of
the case after nearly two decades of
hostile and frivolous litigation by the
PSB. Perjury was the banks practice
in the tribunals, High Court and the
Supreme Court. All this happened
with the full knowledge and connivance of senior managers, including a
former CMD.
Under the Banking Regulation
Act, the RBI can intervene and remedy the situation. But this is only on
paper. Desperate and repeated pleadings to the RBI Governor fell on deaf
ears. Responses from the Ministry
of Finance and Chief Vigilance
Commissioner were no different.
There are far worse victims of PSBs
than this entrepreneur. Indias modern-day Shylocks have far exceeded
this character in greed, cruelty and
deceit. They not only want a pound
of flesh, but also the blood that flows.
This carnal demand is made on small
entrepreneurs who had staked everything to establish a business and live
in dignity. These Shylocks do not care
a damn if the person who had bor-

HESE were enacted to facilitate easy recovery of loans due

to banks, the former with the
help of adjudicating authorities and
the latter an arbitrary suo motu procedure with powers to attach collateral/mortgaged properties and sell
them. These are co-existing remedies,
meaning banks can resort to both at
the same time. This is where there is
huge corruption by bank managers.
Most of the genuine commercial/residential properties mortgaged to the
banks become high-value over time.
SARFAESI gives sweeping powers
to bank managers to summarily take
possession of these properties once a
loan is declared NPA. If the borrower
bribes the bank managers heavily,
they allegedly settle the dues without
charging interest on the borrowed
amount and release the property. If
not, the properties are sold through
brokers at prices much below market
rates and the booty is shared. The hapless borrower, deprived of livelihood,
is thrown on the streets. It is largely
with this view that NPAs are manufactured for truly secured loans.

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npa mg devasahayam

A more insidious method of corruption is to sanction huge loans without

proper due diligence and accept fake
or low-quality properties as security.
Though counted as secured, these
are actually unsecured loans. It is in
these loans that large default takes
place and invoking the SARFAESI
Act is of no use to the banks. So, they
move the DRT under the RDDBFI
Act so that banks

the banks actions are challenged, are

not always obliging. Bankers want
this impediment to be removed and
are seeking more arbitrary powers.
They are already the prosecutor, jury
and judge as far as borrowers are concerned. Now they want to be executioners as well. Despite its Governor
blowing hot and cold, RBI is yielding.
Its December 2014 guidelines allow
to classify any defaulting borb
rower as non-cooperative and then
a wilful defaulter.
A non-cooperative borrower is
on who does not engage constructively
with his lender by defaulting
in timely repayment of dues while

A more insidious method of

corruption is to sanction
huge loans without proper
due diligence and accept
fake or low-quality
properties as security.
Though counted as
secured, these are
actually unsecured loans

can hunt for

properties of the
borrower and his
family not given as
collateral. This is a
cumbersome process, consuming years of litigation
and counter-litigation. In the meanwhile, NPAs keep mounting and skyrocketing as is happening now.
Despite draconian powers under
the SARFAESI Act and vast powers
under the RDDBFI Act, banks are
unable to prevent NPAs or recover
them quickly largely because of inefFLHQF\FRUUXSWLRQRUSROLWLFDOVNXOOduggery. Tribunals and courts, where


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vol. 9, issue 12 | March 2016

ability to pay, thwarting
efforts for recovery of their
du by not providing necessary information
sought, denying access to
sale of securities, etc. In
a non-cooperative borrower
i a defaulter who deliberately stonewalls legitimate efforts of the lenders
to recover their dues.
borrowers within its scope and leaves
very little room for them to raise a
voice or stand up for rights. Any legitimate attempt to do so or any attempt not to succumb to the demands
of the banks would lead to a borrower
and then being declared a willful

defaulter. Following up, the RBI

in January 2015 revised its willful
defaulter guidelines, which not only
also declares him a defaulter for life.
Going a step further, the Securities
and Exchange Board of India (SEBI)
has proposed to completely bar willful
defaulters from any access to equity
and debt markets.

HE scenario is such that the

SARFAESI Act, a subordinated
legislation devoid of natural justice, will now be the rule of law with
respect to defaulters. For example, if
the bank resorts to action under Section 13(4) of SARFAESI, appealing
against it would make the borrower
noncooperative. Thus, it not only
empowers the bank to decide upon
the fate of the borrower, but also denies him the right to appeal. Once
just a matter of time to classify him as
a willful defaulter; and once a willful
defaulter, what awaits him is banishment for a lifetime, completely chokLQJDOODYHQXHVRIQDQFLDODVVLVWDQFH
With these harsh regulations on
loan recovery and NPAs, the new
customer-friendly banking. Now a
borrower will have to obey what his
banker says else his fate is sealed!
Tragically, because of rank crony
capitalism being practised by the
government and its instruments, it
is the small fry who face the gallows
while the big whales keep laughing all
the way to their banks!
These banks are the axis of the
Make in India juggernaut propelled
by the big whales. Ideal ground for
Bankers Heist promoted by the UPA
and now perpetrated by the NDA! g

The writer is a former Army and IAS

officer. Email:

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weapons production

Sukhoi fighter jets are an important

part of Indiam Air Force

India eyes arms

export market
Raising the limit of
foreign direct
investment in defence
to 49 per cent and
proposed divestments
point at the country
aiming to get a
slice of the huge
arms export market


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HERE is an old adage that says

that if you wish others to help
you, you must help yourself
first. To no one does it apply as
acutely as to India. Having ignored
its defence preparedness for over a
quarter of a century, during which it
has witnessed an unflustered growth
of moral and liberal decadence and
simultaneous increase in separatism
and secessionist ideologies, New
Delhi has woken up to the reality
that nothing is a better guarantee to

secure and preserve a lawful society

and nation than military power.
Indias military, for the first time
since the 1950s, finds itself holding
obsolete weapons systems. An
ordinary soldier has no proper helmet
or bulletproof vest, much less effective
assault weapons for a different kind of
operations, and its air force is aged.
Something is urgently required to
be done. Since there is not enough
money in the kitty after subsidising
capitalists and distributing funds
in the name of job creation without
building substantive assets, the

Narendra Modi administration has

hit upon the idea of involving foreign
partners in the countrys defence
production programmes. After raising
the bar on foreign direct investment
(FDI) to 49 per cent and even more in
select cases, the Ministry of Defence
(MoD) officials are now busy working
out plans to boost production and
productivity in the countrys defence
public sector enterprises (PSEs) and
the Ordnance Factory Board (OFB).
Reforms in defence PSEs and the OFB
are also necessitated by the fact that
the country is aiming to get a slice of
the huge arms export market.
Since India is seen as working hard at pulling itself out of the
intellectual and ideological socialist
quagmire of the past, global companies are beginning to make attractive
offers. For instance, Swedish defence
major Saab AB is keen to manufacture

Gripen. We are looking at setting up a

complete ecosystem here, which will
provide 100 per cent benefit to India
for the next 100 years.
US aerospace giant Lockheed
Martin is also keen to set up shop in
India. It has offered to build its flagship F-16 fighter jet in India, as India
scrambles to modernise its aging
defence fleet while trying to establish
the country as a manufacturing base.
Lockheed Chairman, President
and Chief Executive Officer Marillyn
Hewson made the offer to Indian
Prime Minister Narendra Modi in
September, as Phil Shaw, CEO of
Lockheeds Indian unit, said in a recent

interview at the Singapore Airshow.

The US and Indian governments are
negotiating the deal, he said.

positive international attitude

has lifted the veil of despondency and boosted the confidence
of the countrys defence managers.
They are now also targetting a 20-fold
increase in arms exports from the
current $150 million to $3 billion in
a decade. If the plan succeeds, it
would turn one of the worlds largest importers into a major seller of
Production Secretary Ashok Kumar
Gupta said some time ago that the
steps taken by the Prime Minister
to spur defence manufacturing, if
properly implemented, could open
up the possibility of hitting the target by 2025. The challenge is to
boost private sector investment and

its Gripen
India. To meet
the requirements to
set up operations for the
next-generation fighter, the company is looking at 100 per cent technology transfer to India and investment help from Indian partners, said
Jan Widerstrom, Chairman, Saab
India, in an interview.
At the Make in India event in
Mumbai, Widerstrom spoke about
how Saab is open to sharing critical technology with Indian partners, the need for financial help, and
how the company is eager to create
hi-tech jobs in manufacturing the
Gripen with several Indian joint venture partners. Yes, we are offering
complete aerospace capablility, not
just manufacturing capability. We
are willing to do a copy-and-paste Swedish defence major Saab AB is eager to create hi-tech jobs by manufacturing the
Sweden factory here in India for the Gripen with several Indian JV partners

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weapons production

technological expertise, he said.

Arms exports will not only take us
toward the goal of self-reliance in
defence production, but will also
create tremendous employment
opportunities, he added.
Currently, India has a nominal
share in the $64 billion worldwide
arms trade. Its exports range from
supplying parts for Russias Sukhoi
fighter jets to a naval vessel recently
commissioned in Mauritius. The sectors where India has export potential
include naval ships, helicopters and
components for aircraft, according to

Since there is not enough

money in the kitty after
subsidising capitalists and
distributing funds in the
name of job creation
without building
substantive assets, the
Modi administration has
hit upon the idea of
involving foreign partners
in the countrys defence
production programmes

ment. The process may begin with

HAL where preparation for the
same began way back in 2012 when
RK Tyagi was appointed its CMD.
At the time of his retirement in
January last year, Tyagi had changed
the image of HAL from being a
company that imports, assembles
and supplies, as remarked in an
official task force report. When he
took over, six patents were filed; when
he quit, the company owned about
1,100 patents for technological innovations. And this is the surest way to
succeed in the technology-intensive
aerospace business.

US aerospace giant Lockheed Martin offered to build the F-16 fighter jet in India

consultant PriceWaterhouseCoopers
LLP (PwC).
Indias exports target seems
ambitious, said Deba R Mohanty,
a defence analyst and chairman of
Indicia Research and Advisory in
New Delhi. If its able to meet such
targets, then it will in all likelihood
be a competitor to many countries,
including China.
According to Bloomberg, Chinas
defence exports reached $1.5 billion in 2014, the eighth largest in


gfiles inside the government

vol. 9, issue 12 | March 2016

the world in a ranking dominated

by the $23.7 billion sold by the US,
according to IHS Inc. research. India
imported $5.6 billion, the most after
Saudi Arabia.
BUT India has a long way to go.
And the immediate task is to ensure
efficiency, production and productivity at its defence public sector
enterprises and in the units under
the control of the OFB. To do this,
the government has decided to open
up all the defence PSEs for divest-

ESIDES HAL, the government

also plans to divest at least 20
per cent of its shares in the other
defence PSEs. It may sell its stake in
Hyderabad-based Bharat Dynamics
for the first time. The company makes
missiles, including the nuclearcapable Agni series. The Defence
Production Secretary recently said
the government would divest as much
as 75 per cent of its shareholding in
Bharat Electronics. The other public
sector defence enterprises included
in the list of divestment are BEML,
Mazagon Dock, Goa Shipyard, Garden
Reach Shipbuilders and Engineers
Ltd., Mishra Dhatu Nigam Ltd and
Hindustan Shipyard. The government
controls about 54 per cent of BEML,
while the other companies are 100 per
cent government-owned.
These proposed divestments are
part of the governments plan to carry
out $150 billion modernisation of the
equipment and weapons system of
the Indian Armed Forces. The stake
sale will provide capital and openness
for growth and enable defence PSEs
to compete with the private sector,
which has been allowed gradual entry
into defence production over the past
few years. g

gujarat land deal

Anandiben in the
eye of a storm
The alleged land deal involving the Gujarat CMs daughter, Anar Patel, near the
Gir sanctuary, has put the CM and her party in a difficult spot

political storm is brewing in

Gujarat over a land deal for
a resort on the fringes of the
Gir sanctuary with which Anar Patel,
daughter of Chief Minister Anandiben
Patel, is associated. The issue, raised
by the Congress, has provided fuel
to the rivals of the Chief Minister in
the Bharatiya Janata Party (BJP),
who have launched a hush-hush
campaign against her over the last
several months.
Anar admits that she has business
relations with one of the promoters of

the controversial Wildwoods Resorts

and Realties Pvt Ltd (WWRRPL), but
denies any involvement in the deal.
The state government, on the other
hand, has claimed that there was
nothing illegal in the allotment of government land to WWRRPL. BJP leaders have condemned the Congress
allegations as politically motivated
to defame the Chief Minister and
her daughter.
Senior Congress leader Arjun
Modhwadia, who culled all details
of the deal, says the speed at which
the entire process of clearing land
and other permissions for the project
was done and the throwaway price

The land was alloted to WWWRRPL when Narendra Modi (right) was Gujarat Chief
Minister and Anandiben Patel (left) was the Revenue Minister

at which the government land has

been given to the promoters, tells the
tale of corruption of the Narendra
Modi model of governance at the
time when Modi was Chief Minister
of Gujarat and Anandiben was
Revenue Minister.
After Modi became the Prime
Minister in 2014, she became the
Chief Minister. But she still has the
revenue department under her. This
controversial deal has certainly added
to the problems of the Chief Minister,
who is facing a powerful Patidar agitation for the past seven months.
Modhwadia says that it all began
with the allotment of 250 acres of
government land next to the Gir lion
sanctuary. The company was registered with the Registrar of Companies
on July 23, 2008. At that time, the
company was owned by Sanjay
Dhanak, a Dubai-based businessman
and son of a former MLA close to the
BJP. It applied for land on September
1, 2008, and the district-level valuation committee suggested a nominal price for the land on December
5, just in three months. The District
Collector forwarded the application to
the government the very next day, on
December 6, 2008.
The state-level committee cleared
the proposal with the valuation of
`15 per sq m in December 2009 and,
in July 2010, the Cabinet, with Modi

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vol. 9, issue 12 | March 2016


gujarat land deal

19, 2009, Wildwoods applied to the

Assistant Conservator of Forests
(ACF), Dhari, for obtaining recommendation/NOC for construction of
resorts having the following facilities: Phase-I Cottages60; Phase-II
Villas-A75; land requirement for
construction77,768 sq m.

Anandiben Patel has been under fire for the past few months

as Chief Minister and Anandiben as

Revenue Minister, cleared the project.
He says the land was given to
WWRRPL at `15 per sq m, which
comes to `60,000 per acre. The estimated market price of this land was to
the tune of `50 lakh per acrea total
of `125 crore for 250 acres.
The firm changed hands in 201112. One of the original promoters of
the company and its present owners
are Anars business partners, he says.
It was acquired by Parshwa Texchem
(India) Private Limited, owned by
Dakshesh R Shah and Amol Shripal
Sheths Anil Infraplus Limited.
Currently, the ownership pattern of
Wildwoods is Parshwa Texchem (50
per cent), Anil Infraplus (49.9 per
cent), Shah (0.04 per cent) and Anil
Hospitality Ventures Limited (0.04
per cent). Shah and Parshwa Texchem
are business partners of Anar Patel,
he says. Wildwoods also brought an
adjoining 172 acres of agricultural
land. Non-farmers are not permitted
to purchase agricultural land, but the


gfiles inside the government

vol. 9, issue 12 | March 2016

N December 14, 2009, Gujarats

Principal Chief Conservator
of Forests and Chief Wildlife
Warden granted an NOC for establishing and opening of resort at Patla village of Dhari to WWRRPL via their letter No.WLP/28/0/327-31/2009/10.
Meanwhile, the Principal Chief
Conservator of Forests, Government
of Gujarat, issued a circular
dated December 7, 2010. It directed

The land is in an
eco-sensitive zone. But the
company was given
permission, flouting all
norms for any activity
in the region, alleges
the Congress

Anar Patel, Anandibens daughter

firm was granted permission in 2011.

The state government permitted conversion of agricultural land to nonagricultural use.
The land is in an eco-sensitive
zone. But the company was given
permission, flouting all norms for
any activity in the region. On August

that, as per direction of the Ministry

of Environment and Forests (MoEF),
the Government of India, on August
19, 2010, for any non-forest activities
within a 10-km radius of a protected
forest, it is mandatory to get prior
environmental clearance from the
standing committee of the National
Board for Wildlife.
The resort did not come up as, in a
suo motu PIL, the Gujarat High Court
sealed all resorts in the eco-sensitive
area. However, to protect the interests of this company, the government
changed its rules and reduced the noconstruction area from 2 km to 1 km.
Anar reacted to the controversy
through her Facebook account: I,

It is alleged that Wildwoods Resorts and Realties Pvt Ltd was allotted 250 acres of government land next to the Gir sanctuary

Anar Patel, am neither a director nor a

shareholder in WWRRPL (Wildwoods
Resorts and Realties Private Limited),
Anil Infraplus and Parshva Texchem.
I dont have to do anything with
WWRRPL, anybody can check with
the government authority.
Indeed, Daksheshbhai (Dakshesh
Shah, who owns WWRRPL along with
Amol Shripal Seth of Anil Infraplus)
is my business partner, but that
doesnt mean that I am there in all
his companies. He is a self-made
businessman and is in business since
last 22 years, she wrote.
We started a company, named
Anar Projects, seven years back
with business interest in retails and
services. We never took any favour
from any government organisation,
we strictly followed all rules and
regulations in all manners. Its
disheartening that my individuality is
attacked based on sheer assumptions.

I believe in my moral strength, not in

anyones favour, she wrote in her
latest post.
However, the Chief Ministers trouble did not end with these denials. A
PIL was filed in the Gujarat High
Court on February 20. Somnath district-based RTI Activists Sangathan
(RAS) filed a PIL seeking the courts
intervention in the matter. The PIL
has raised the issue of the conflict
of interest, saying the 250-acre land

While farmers are not

allowed to dig a borewell
because of the sanctuary,
Wildwoods is being
allowed to go ahead with
the construction work,
claims Nalin Kotadiya,

was given to Wildwood Resorts at an

official rate of `15 per sq m, against
the rate of `180 per sq m.
On the other hand, Nalin Kotadiya,
BJP MLA from Dhari constituency,
has come out openly against the Chief
Minister. He said the state government
had approved `10 crore for a bridge
in a village with a population of 200
people. The bridges and roads in this
area were being developed to pave
a grand entrance for the proposed
site of Wildwood in Khamala village,
he said.
He alleged that while farmers are
not allowed to even dig a borewell
because of the sanctuary, Wildwoods
is being allowed to go ahead with
the construction work. Kotadiya
is likely to raise a question on the
development projects in this area in
the Budget session of the Assembly to
add more dust to the storm raised by
the Congress. g

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vol. 9, issue 12 | March 2016



maharashtra politics

Caught in a tangle

With the BJP-led government caught in an internal tussle with its ally, the
Shiv Sena, and growing mistrust between the Congress and the NCP,
it is the people who are the ultimate losers

ALL it stalemate, gridlock

or deadlock, the seeds of the
present state of affairs in
Maharashtra lie in the hung verdict
of the assembly elections of October
2014. In hindsight, the Bharatiya
Janata Partys (BJP) decision to snap
its decades-old alliance with its longstanding ally, the Shiv Sena, proved
correct. But it did not help the party
catapult itself to power all on its own,


gfiles inside the government

vol. 9, issue 12 | March 2016

falling short of the majority by 25-odd

seats. Some miscalculations on some
seats left the BJP with no other choice
but to once again woo its estranged
ally to stabilise its government.
It took almost a month for the BJP
to arm-twist its ally into joining the
government. The Sena too needed the
reins of power as civic elections to key
municipal corporations like BMC,
Aurangabad, were due in 2015-16, or
are slated to be held by 2017. In a bid

to maintain its separate identity and

wary of what the BJP might do next,
the Sena is still smarting in its new
avatar of opposition in treasury
benches, or ruling opposition.
Attacking the BJP-led governmentof which it is a part both in
Maharashtra and at the Centreoften
has raised questions about the Senas
intentions and its ability to solve peoples problems. The BJP is not letting
go a single opportunity to deflate the
Senas ego, be it over the open space

policy, reviving Mumbais nightlife,

open-air gym at Marine Drive and,
the latest, the fire at Deonars dumping ground. The 2017 BMC elections
should prove to be a breaking point if
either of the two get power on their
own. The single biggest difference
between the two estranged allies is
that while the Sena has its shakhas
right till the ward level, the same cannot be said about the BJP and other
political parties, at least in Mumbai
and neighbouring Thane city.
In the absence of a clear mandated
oppositionand an opposition that
appears to be hopelessly divided too
the squabbling BJP-Sena government
will continue at least for the time
being, until and unless they decide to
throw it away. Or, the wily Nationalist
Congress Party (NCP) chief Sharad
Pawar might decide to recall his party
rebels who left the party fold to contest the Assembly elections and won
on the BJP ticket. A sizeable number
of the 123 BJP MLAs are erstwhile
NCP or Congress legislators. At present, the NCP with its numerical
superiority in the Maharashtra
Legislative Council is calling the shots
in all respects. A senior BJP minister,
speaking on condition of anonymity,
admitted that this government is sur-

Although it is grabbing the headlines

by attacking the BJP and the government, it has no other alternative to
offer to the public at large. The Aam
Aadmi Party (AAP) has quietly been
preparing for the 2017 BMC elections.
Only time will tell if the AAP can upset
the applecart of the BJP and Sena.

Uddhav Thackeray: Running with the

hare, hunting with the hound

viving at the mercy of the NCP.

Another reason for the lacklustre
performance of the BJP-led government has been a pronounced disconnect between the partys top leadership and its cadre at the grassroots.
Despite the 1.25 crore registered
active members in the state, the party
fared badly in the recent civic polls.
The Sena too is solely dependent on
Uddhav Thackeray and his son,
Aditya, to deliver power in elections.

A senior BJP minister,

speaking on condition
of anonymity, admitted
that this government is
surviving at the mercy
of the NCP

Sharad Pawar is the tallest mass leader in Maharashtra today

VEN before the Assembly election results were announced in

October 2014, the NCP declared
its unconditional support to the BJP
for forming the next government. The
move underlined the notion that the
NCP cannot survive without power.
It had a ripple effect, putting the BJP
in an awkward situation as it had
fought the elections on the issue of
the alleged corruption of NCP leaders. Secondly, initially it widened
the rift between the BJP and Sena.
Thirdly, the distrust and suspicion
of the Congress towards the NCP has
only grown. And lastly, the NCP has
been bailing the Devendra Fadnavis
government out of many tricky legislative tangles. The 2014 Assembly
election has created a strange situation where the Congress is the
main opposition in the Maharashtra
Legislative Assembly and the NCP
controls the Upper House. In the last
monsoon session, the BJP helped the
NCP in ousting Shivajirao Deshmukh,
a Congressman, from the Council
chairmans post.
The situation is such that the allies
are not trusting each other anymore
and the bureaucracy is having a field
day. It is more so because of the fact
that, barring senior BJP ministers
Eknath Khadse, Prakash Mehta,
Sudhir Mungantiwar, Vishnu Savara
and the Senas Diwakar Raote and
Ramdas Kadam, none has had any
previous experience of being in the
government. These and some other
junior ministers of state had been

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vol. 9, issue 12 | March 2016



maharashtra politics

The Prime Minister called on NCPs Sharad Pawar in Baramati recently, triggering speculation over ties between the two parties

ministers in the previous Sena-led

government in 1995-99. In contrast,
almost all the NCP legislators have
had a fairly long experience of being
in government.
Most of the greenhorn BJP ministers are not even aware of the enormous power that they command. One
often finds them and the first-time
Sena ministers asking for directions
from the administrative staff and the
bureaucracy on matters of governance. If you have senior ministers
calling bureaucrats and lower-ranking officials Sir, or the minister himself walking down to the bureaucrats
office, it speaks volumes of the way
the government is functioning.
Recently, a senior bureaucrat simply
went on a foreign tour informing the
senior Sena minister who heads her
department after she had already
left India.
What more can underline this than
Chief Minister Fadnaviss own admission that the administration is refusing to fall in linehe twice made his
exasperation known publicly. He
finally cracked the whip on senior
bureaucrats, asking them to undertake compulsory field visits to offices
coming under the jurisdiction of their
respective departments and report
back on measures to improve the
administration. There are several
posts in the administration that are


gfiles inside the government

vol. 9, issue 12 | March 2016

The situation is such that

the allies are not trusting
each other anymore and
the bureaucracy is
having a field day
lying vacant for quite some time now.
The biggest examples of the
bureaucracy and the administration
taking the government for a ride have
been the oversight in granting tariff
waivers to JSW and the infamous
Government Resolution on Sedition
slapped against the media and anyone
daring to speak against the government. In most cases, it was left to the
Chief Minister to do the firefighting.
Even as the government fumbles, the
opposition, the Congress, is in no
position to exploit the situation as it is
bereft of any known leader with a panMaharashtra appeal.

NE thing, though, should be

noted here; in the recent round
of civic elections in Maharashtra,
the Congress emerged as the number
one political party. That means that
though the BJP may have succeeded
in Congress Mukta Bharat at the Lok
Sabha and Assembly level, it has not
succeeded in removing the Congress
base at the grassroots level and its
support lifeline, the cooperative sector. Despite this being the case, its

leaders continue to be at loggerheads

with each other, trying to undermine
each others authority. The latest
example of it has been the Sanjay
Nirupam-edited controversial issue of
Congress Darshan.
In such a situation, where no party
has a mass leader left, NCP chief
Sharad Pawar is sitting pretty. But
Pawar is saddled with the ticklish
issue of how to hand over the reins of
his party, and to whom and how. He
needs the BJP to stay politically
relevant and is touted as being one of
the reasons behind Prime Minister
Narendra Modi calling on Pawars
home turf in Baramati.
When it comes to showcasing public welfare schemes, the BJP-Sena led
government has nothing much to
show. The only initiative that it can
tout is its flagship programme, the
Jalayukta Shivar (recharging of village groundwater reservoirs) to tackle
drought conditions in the state. The
rest of the announcements are more
of a populist nature rather than having any impact on public life. Even the
infrastructure projects are yet to get
off the ground. The worst is yet to
come. For the fourth consecutive
year, the monsoon has failed. Already
the water crisis is looming large on the
horizon and is going to get worse as
the government faces a stormy annual
budget session. g


travel madhya pradesh

Verdant gem

ACHMARHI is a lovely hill

resort girdled by the Satpura
ranges, it offers absolute
tranquility. Bridle paths lead into
placid forest groves of wild bamboo,
jamun, dense sal forests and delicate
bamboo thickets
Complementing the magnificence
of nature are the works of man.
Pachmarhi is an archaeological treasure- house. In cave shelters in the
Mahadeo Hills is an astonishing richness in rock paintings. Most of these
have been placed in the period 500800 AD, but the earliest paintings
are an estimated 10,000 years old.
Contrasting cultures and ages exist in
harmony as if time and trends mean

little in this serene, wooded place.

Pachmarhi is for unwinding, effortlessly. Roads meander gently groves
of trees, open spaces and heritage
cottages sitting contentedly in their
old gardens. The town has a quiet
gentility about it as if Victorian traditions and high collars still governmost
peoples lives. Much of this ambience has been set, and is still being
maintained, by the strong presence
of the Army whose Education Corps
is headquartered here. The old cottages, meticulously maintained by
the Military Engineering Services,
have changed little since the days of
Kipling. Pachmarhi was discovered by

Amaltas: Tel: (07578) 252098; email:
Champak Bungalow: Tel: (07578) 252034,252587; email:
Glen View: Tel: (07578) 252533, 252445; email:
Hotel Highlands: Tel: (07578) 252099/252399; email:
Rock-End Manor: Tel: (07578) 252079; email:

Nearest airport is at Bhopal (195 km)
connected by regular flights with Delhi,
Gwalior, Jabalpur, Indore and Mumbai.
Regular bus services with Bhopal,
Hoshangabad, Nagpur, Pipariya and
Chhindwara. Taxis are available at
Pipariya(47 km), on the MumbaiHowrah mainline via Allahabad, and is
the most convenient railhead.

Captain Forsyth in 1857. The British

developed Pachmarhi as a resort and
their influence is embodied in its
churches and colonial architecture.
The elevation and the forests of
the Satpuras, with their streams
and waterfalls, are picturesque and
home to much wildlife. Pachmarhi
lies within the Pachmarhi Biosphere
Preserve, created in 1999 to link two
forest reserves into a larger wildlife
conservation area at the highest point
in Central India. g

gfiles inside the government

vol. 9, issue 12 | March 2016



non-fiction autobiography


`17 to billionaire: A saga

of determination

e set off for Delhi from his home

in Hissar with `17 in his pocket
at the age of 17. The flourishing family business in the grains
trade had gone bankrupt. Debt made
his functioning as a trader difficult as
credit was denied. The autobiography
of billionaire entrepreneur Subhash
Chandra, The Zee Factor: My journey
as the wrong man at the right time
(co-authored by Pranjal Sharma; published by HarperCollins) is a fascinating saga of determination and sagacity. It gives a rare insight into Delhis
powerbroking and underscores the
role chicanery plays in inter-corporate
rivalry. Its a must-read as a case study
in business schools, not only in India
but perhaps in the entire emerging
world where regulations of yore have
given way to a new jargon, ease of
doing business.
Releasing the book, Prime Minister
his longstanding association with
Chandra (whose family has an RSS
background) and complimented him
on his growth story, saying, Risk is
part of his swabhav.
I am not scared of jumping into
situations that would scare others. I
do not fear anything I prefer to enter
segments that others ignore... My
entry into rice exports, broadcasting,
packaging, amusement parks are all
examples of this. I dont mind failing
if I know that I tried my best, writes
the man who launched Indias first
private TV channel, Zee, on Mahatma
Gandhis birth anniversary in 1992
and gave India its first DTH, Dish TV,


gfiles inside the government

vol. 9, issue 12 | March 2016

Title: The Z Factor: My journey as

the wrong man at the right time
Authors: Subhash Chandra and
Pranjal Sharma
Publisher: HarperCollins
Pages: 300
Price: `699

on October 2, 2003.
Two of his failed venturesIndian
Cricket League (2006) and Agrani
(1994)proved precursors to the IPL
and successful satellite mobile telephony. Life is full of crises, hope, challenges and enjoyment the determination to do more, learn more, has
stayed with me, he writes. At the
book launch, his comment: If you
adapt to change, success will come to
you, summed up his life story.
As a fledgling, he played a pioneering role in modernising food
procurement in the late 1960s, as his
suggestion caught the imagination
of officialdom. The paradigm of FCI
and Armys purchase of foodgrains
changed due to him. He also, perhaps,
paved the roadmap for restructuring
of loans by banks while seeking funds
for his food business.
He strayed into the business of

supplying poles for telephones with

the help of powerbrokers in Delhi.
He recalls his benefactor, BR Chopra,
At one time he was the chauffeur
of Congress leader Jagjivan Ram.
He used his political connections to
get things done in Delhi. The case
study of Chopra cited in the book is
not isolated: Delhi has seen many
such rags-to-riches stories. Recently
a prominent automobiles dealer, who
once sold seat covers and accessories
in a municipal market, celebrated his
sons weddingthe guest list read
like the Whos Who of Delhis
power corridors. In the 1960s-70s,
having used the benefits accorded
to the small-scale sector, Chandra
observes, This sector depended a
lot on government subsidies and tax
exemptions. Most players in the sector were making money from exemptions, but not doing any real business.
Delhi has a culture of encouraging
intermediaries. Most of them have
worked in the government or assisted
someone in the government. All of
them claim to be well-connected,
with deep understanding of how files
moved in various ministries, writes
Chandra. He describes how he made
contact with Sanjay Gandhi through
one Tripathi. (The full name of
this dramatis personae is withheld,
perhaps, because he prefers to keep
this contact anonymous. He mentions
Anil Chananaa name well known
in power circles in the days of Sanjay
and his Delhi Youth Congress chief,
Jagdish Tytler. However Tripathi
and one Sharma are provided the

shroud of anonymity.)
There seems to be a factual error in
this otherwise well-chronicled tome.
Chandra says he used to visit Sanjay
in a house in Nizamuddin where, he
claims, Indira Gandhi had moved
after losing power in 1977. It is history that Mrs Gandhi shifted to 12,
Willingdon Crescent (now Madam
Teresa Crescent) from 1, Safdarjung
Road. Also, the people assisting
Sanjay in those days were Raghu and
JN Mishra. No Tripathi or Sharma
are recalled by those who were close to
the Gandhi family during that phase.
At another point, Chandra says he
met Rajiv Gandhi through Manubhai
Desai, who, Chandra claims, used
to host Rajiv in Mumbai. Sources,
while acknowledging Desai as Rajivs
acquaintance, wonder if the latter ever
stayed with the former in Mumbai.
Chandra describes how he benefitted by becoming close to Dhirendra
Brahmachari. He bid for exporting
Basmati rice to the erstwhile USSR,
with whom India had a rupee-rouble
trade pact. He vividly describes his
interactions with Rajiv and his close
aide, Vijay Dhar, and goes on to narrate how, when he complained to
Dhar that Brahmachari was making
extraordinary monetary demands,
the matter went right up to the then
Prime Minister, who met him at her
residence late at night. The fall of
Brahmachari, whom Rajiv despised,
can perhaps be traced to the brief chat
that Chandra had with Mrs Gandhi.
(Vijay Dhar was a prominent invitee at
the book release function and he finds
mention in more than one narrative of
Chandras success story.)
There is an aside: having ousted
the established supplier of Basmati to
the USSR, Chandra faced trouble in
Moscow when his rice was described
as sub-standard. Apparently, the previous exporter was sending Parmal in

the guise of Basmati. Chandra apparently changed tackhis Basmati (or

whatever went under that name) was
never rejected again. The money from
sale of rice to USSR apparently fed the
coffers of the ruling party.
Amitabh Bachchans role in Delhis
power circles is mentioned. Chandra
refers to the Kashmiri Group, comprising Arun Nehru, ML Fotedar
and Dhar, which was at loggerheads
with the group of RK Dhawan,
Brahmachari and some others. He
used this to his advantage when cornered by Brahmachari for funds from
his rice export.
The book gives a vivid description of
the setting up of Zee. Chandras handling of giants like Rupert Murdoch
is detailed. And so is his relationship
with STAR. Many icons in the media
have been analysed and discussed.

Chandra has not only

pioneered businesses, but
has outstripped Indias
corporate world in what is
popularly known as CSR
While writing on the telecast rights
in cricket, Chandra describes how the
BCCI, headed by Jagmohan Dalmiya,
preferred ESPN-STAR Sports over
Zee:I realised I would need help for
taking on Dalmiya. I happened to have
very good relations with BJP leader
Arun Jaitley. I have a good equation with him even today I sought
Jaitleys help but he was cold and
said, I will see, Subhashji . Much
later, I learnt that it was not Dalmiya
but Jaitley who favoured ESPN-Star
sports because he genuinely believed
that the foreign companies are more
honourable or professional than
Indian ones. If Jaitley was in the
government, as he is now, would his
beliefs remain the same? Sometimes

these genuine beliefs dont fade away.

Lamenting that he was let down
by Jaitley and Rajiv Shukla, he writes,
I also knew Rajiv Shukla he did not
take my calls. I lost my cool I dont
know how true this is, but some people
allege that Rajiv is open to persuasion
and can change his position based
on practicality.
There are no permanent allies or
enemies in the world of the BCCI,
writes Chandra while mentioning how
he backed Sharad Pawar and ensured
Dalmiyas defeat, but that too did not
help him in securing favours off the
cricket field for Zee.

HANDRA has not only pioneered

businesses, but has outstripped
Indias corporate world in what
is popularly known as Corporate
Social Responsibility. While corporates have grudgingly agreed to the
government stipulation of devoting 2
per cent of profits for CSR, Chandras
firms, going by the Vaishya practice
of Dasaundh, puts aside 10 per cent
for CSR. Ekal Vidyalayaa concept
of single-teacher school embedded in
the communityhas been promoted
by him and the Prime Minister feted
him at the release function for running 52,000 such schools, where a
single teacher teaches children from
Nursery to Class V. Apart from education, the foundation that runs Ekal is
also diversifying into healthcare.
Chandra says that now that
infrastructure is a vertical of his
empire, he intends playing a role in
the development of smart cities.
He concludes his book thus: I
remain a hungry person who does
not want to die, who wishes to be
remembered after current journey
ends someday. The saga of Subhash
Chandra will indeed have no end. g
The writer is a former Editor of Sunday and
National Herald

gfiles inside the government

vol. 9, issue 12 | March 2016


The Prime Minister Narendra Modi at the inauguration of
the Make in India Week in Mumbai. The Minister of State for
Commerce & Industry (Independent Charge), Nirmala
Sitharaman, and the Secretary, Department of Industrial
Policy and Promotion (DIPP), Amitabh Kant, and the Chief
Secretary of Maharashtra, Swadheen Kshatriya, are also

Union Minister for Finance, Corporate Affairs and

Information & Broadcasting, Arun Jaitley, at the launch of
the official YouTube channel of the Ministry of Finance, in
New Delhi. The Finance Secretary, Ratan P. Watal and the
Secretary, Department of Economic Affairs, Ministry of
Finance, Shaktikanta Das, are also seen.

The Union Minister for Urban Development, Housing and

Urban Poverty Alleviation and Parliamentary Affairs, M
Venkaiah Naidu, presented the Swachh Survekshan awards
at a press conference in New Delhi. The Secretary, Ministry of
Housing and Urban Poverty Alleviation (HUPA), Dr. Nandita
Chatterjee, is also seen.

The Secretary, Ministry of Information and Broadcasting,

Sunil Arora, addressing at the Annual Convocation of the
Indian Institute of Mass Communication (IIMC), in New Delhi.

The Minister of State for Environment, Forest and Climate

Change (Independent Charge), Prakash Javadekar releasing
the App (2.2 Version) on medical plant by Neighborhood App
(0.4.0 Version) on common medical plans of Bengaluru City
at the National Interaction-cum-evaluation workshop for
Environmental Information System (ENVIS) centres in New
Delhi. The Secretary, Ministry of Environment, Forest and
Climate Change, Ashok Lavasa, is also seen.


gfiles inside the government

vol. 9, issue 12 | March 2016


The Union Minister for Mines and Steel, Narendra Singh

Tomar, launching the project UNCOVER initiative in India,
at the inauguration of the 55th meeting of Central
Geological Programming Board in New Delhi. The
Secretary (Mines), Balvinder Kumar, is also seen.

The Union Minister for Road Transport & Highways

and Shipping, Nitin Gadkari, at the 16th Meeting of
the National Road Safety Council (NRSC) and 37th
Meeting of the Transport Development Council (TDC),
in New Delhi. The Minister of State for Road Transport
& Highways and Shipping, P Radhakrishnan, and the
Secretary, Ministry of Road Transport & Highways,
Sanjay Mitra, are also seen.

The Minister of State for Petroleum and Natural Gas (Independent

Charge), Dharmendra, addressing a press conference about a
National Seminar on Lignocellulose to Ethanol-Roadmap for
India, in New Delhi. The Secretary, Ministry of Petroleum and
Natural Gas, KD Tripathi, is also seen.

The Minister of State (Independent Charge) for Power,

Coal and New and Renewable Energy, Piyush Goyal,
chairing the 40th meeting of the Standing Committee on
Safety in Coal Mines, in New Delhi. The Secretary (Coal),
Anil Swarup, is also seen.

The Minister of State (Independent

Charge) for Power, Coal and New and
Renewable Energy, Piyush Goyal
speaking at the signing ceremony of a
tripartite MoU with the state of Bihar
on UDAY (Ujwal Discom Assurance
Yojana) for operational and financial
turnaround of discoms, in New Delhi.
The Secretary, Ministry of Power,
PK Pujari, is also seen.
Compiled by Kanika Srivastava

gfiles inside the government

vol. 9, issue 12 | March 2016


cosmos sadhguru

with stories about fire,
indicating the significance
of this element in human perception.
From Agni, the god of fire, sacrifice
and divine knowledge in Vedic
cosmology to Prometheus, the man
who brought fire to humanity in
Greek mythologythe tales are many
and varied. According to the yogic
system, both the human body and the
cosmos are composed of just five
elements: earth, water, fire, air and
ether. With mastery over these five
elements, one can experience the
entire cosmic mechanism.
Among the five elements, fire is
particularly significant. Life upon this
planet, as we know, is essentially
solar-poweredwe are alive thanks to
a huge ball of fire. Any machine we
create is invariably fuelled by fire. We
may call it electricity, petrol, gasoline,
diesel, wood or coal, but it is essentially fire-driven.
Fire also finds a deeper manifestation within the human system. The
fires that burn within us can be categorised into three, in terms of life
experience. The first is jatharagni.
Jathara literally means stomach or
the digestive process. Food is a fuel
that needs to be broken down to
release energy, and without a little
digestive fire in your belly, you cannot
digest it. If this digestive fire is wellfuelled, it also becomes reproductive
fire. These two fires of digestion and
reproduction are together called
jatharagni. If your jatharagni is
strong, you enjoy a robust body.
Another fire belongs to the realm of
the mind and beyond and is called chittagni. Chitta is a dimension of intelligence which transcends the limitations of the physical. Your physical
form is an outcome of a certain memory structuregenetic and karmic.
There is something in you that


gfiles inside the government

vol. 9, issue 12 | March 2016

Of the fires within

remembers how to turn a meal into a
human being, and not, for instance,
into a rhinoceros! It is memory which
gives you a form. Much of your intelligence is subservient to this memory
and serves the integrity of your form.
But chitta is unsullied by memory
and does not serve the physical form.
Chittagni is the fire of intelligence, of
intellectual acumen. If your chittagni
is not reasonably fired up, your intellect becomes feeble and ineffective.
When your chittagni burns bright, the
physical aspects recede in importance, and you are often less interested in food and sexuality. This is not
about renunciation, as is often
believed, but about transcendence.
The next dimension is bhutagni
the elemental fire. When bhutagni is
active, your focus and interest will
shift away from the antics of your
body and mind to a more fundamental aspect of creation. Mastery of
bhutagni gives you mastery over the
life process itself. If you can touch the
elemental fire of bhutagni, you
become a boundless being.
Beyond all this is sarvagni, a
dimension in which there is no creation as you know it. According to

modern science, the physical aspect of

creation makes up less than 4 per
cent. The rest, they say, is dark matter
and dark energy. Sarvagni is that
dimension. Generally, a yogi will
focus only on sarvagni because this is
the ultimate fire. Jatharagni is a very
obvious fire, chittagni is subtler, and
bhutagni subtler still. But sarvagni
seems almost absent. And yet, without it, nothing would happen. It is a
very cool fire that doesnt burn like
the others, but holds all other fires
within it.
When you approach a level of
yogic expertise termed bhuta siddhi,
you have achieved mastery of the
elements. Life opens up its bounty
to you. Health, well-being, clarity,
enlightenmentnone of these can be
denied to you anymore. Even a sambar takes at least 13 ingredients! But
life is just a game of five ingredients:
once you master these, you can penetrate the deepest mysteries of the
universe. Not surprisingly, those who
have attained self-realisation have
often termed it a cosmic joke! g
Sadhguru, a yogi, is a visionary,
humanitarian and a prominent spiritual
leader (

dr gs sood

A prudent budget

XCEPT for introduction of

dividend tax for those receiving
it in excess of `10 lakh, I could
hardly find anything that can be
termed negative for the market in the
Union Budget 2016. The measure of
dividend tax can best be described as
penny wise pound foolish, looking
at the current scenario of the market
and the disproportionate damage it
may cause to the sentiment compared
to the minuscule revenue it will end
up generating. In fact, the muchneeded focus on agriculture, rural
development and infrastructure will
give the desired push to demand
stimulation in rural India, that has
become a matter of concern post two
consecutive monsoon failures and
the world economy going through a
massive slowdown. Also, it will be a
step towards ensuring food security
and will prepare the necessary base
for the Make in India initiative.
By sticking to the fiscal deficit target
of 3.5 per cent of GDP, the Finance
Minister has not only reiterated
the fact that fiscal stability and
discipline remain his key focus, but
has also ensured that dysfunctional
consequences of fiscal splurge are
not allowed to spread to the economy
in the form of inflation and currency
depreciation. However, in view of
the impending implementation of
one rank one pension (OROP) and
recommendations of the Seventh Pay
Commission, how the FM will meet
the target is not clear. A massive boost
to infrastructure will not only augur
well for economic growth but will
also be positive for sectors such as

steel and cement that are languishing

for quite some time due to demand
slowdown across the world and crash
in commodity prices. The `25,000
crore allocated for recapitalisation of
public sector banks is too little to not
only meet the Basel III norms in time,
but is grossly inadequate in view of
the deep malaise the banking sector
is facing following mounting NPAs.
Also, this will not enable the banks to
give the much-needed push to credit
growth for the private sector.
The Budget has nothing positive
for the corporate sector which is
reeling under consecutive earnings
downgrades and has seen a sharp
deterioration in the interest coverage
ratio that may further compound the
woes of the banking sector. Lack of
incentives for the corporate sector
and the capital market in general
and no relief in direct taxation will
result in the savings rate going down

further. This may not augur well for

an economy that desperately needs
investment to pick up. Also, this may
prove to be counterproductive for the
success of the ambitious disinvestment
target of the government in view of
the market not showing any signs of
revival anytime soon.
The face-off in Parliament over
the JNU and Rohith Vemula issues is
unlikely to make room for any major
reform to get through in this session.
The global scenario remains equally
volatile with Japan introducing
negative interest rates and China
continuing to witness FII outflows.
Investors will do well to exercise
caution as there may be some more
downturn felt in the market. However,
wherever value is seen, one needs to
start investing gradually. Even
investing in Nifty in a staggered
manner shall give decent returns over
a period of two-three years. g

Stock Shop


KNR Constructions
(CMP `461)

infrastructure, especially road construction, in the Union Budget 2016
augurs well for a company like KNR
Constructions which has well established credentials in this sector. KNR
Constructions quarterly results have been
satisfactory despite the Chennai floods
that would have affected execution. Given

their order book and very low debt the in

balance sheet and track record, it is a very
sound company in the road construction
space. A strong order book providing long
visibility coupled with proven execution
capabilities and healthy operating margins will enable strong earnings growth,
going ahead. The stock is available at a
PE of just 10 with a TTM EPS of more than
`45 as against the industry PE of more
than 20. There is hardly any downside in
the stock that is set to give decent returns
over a period of two-three years.

The author has no exposure in the stock recommended in this column. gfiles does not accept responsibility for investment decisions by
readers of this column. Investment-related queries may be sent to with Bhardwajs name in the subject line.

gfiles inside the government

vol. 9, issue 12 | March 2016


IAS officers birthdays March 16, 2016 April 15, 2016

IAS officers birthdays March 16, 2016 April 15, 2016

Manish Singh

Kamal Kishore Soan

D Sambasiva Rao

Atri Bhattacharya





Prem Singh

Vipin Chandra Sharma

Manish Kumar Verma

Balamurugan D





Vikas Shankar Kharage

Richa Sharma

Lakku Venkateshwarlu

Umesh Kr Singh Chauhan





CN Dalvi

Satyajeet Rajan

Dibyendu Sekhar Misra

B Venkatesham





Arun Kumar

Sunil Kumar Bhargava

Pritam Singh

Prem Singh Meena





Manoj Sharma

Rajesh Kumar Sinha

Kunwar Fateh Bahadur

Vishnu Kumar





Shailesh Kumar Singh

Mahendra Jain

Anil Malik

Ajay V Nayak





Sanjay Kumar Shukla

Nilima Jauhari

Richa Bagla

Ajay Kumar Gupta





Satyaprakash TL

Meenakshi Rajagopal

RS Shukla

Pankaj Kumar





JM Balamurugan

Nitin N Kareer

C Parthasarathi

Kusumjit Sidhu





Hari Raj Kishore

Shakuntala Gamlin

Mahesh Kumar Singh

Sunil Arora





Ranbir Singh

Neelam Shammi Rao

Sanjeev Verma

Monika Sehgal Garg





Aswini Kumar Parida

Shahla Nigar

Manoj Kumar Shrivastava

Jagdish Chander Sharma

























































For the complete list, see


gfiles inside the government

vol. 9, issue 12 | March 2016

IPS officers birthdays March 16, 2016 April 15, 2016

IPS officers birthdays March 16, 2016 April 15, 2016

V Balakrishnan

Karuna Sagar

DM Awashthi

Vivek V Phansalkar





Rajiv Jain

Kaustubh Sharma

Jitendra Kumar

Thrilok Chandra KV





R Thirugnanam

Yash Pal Singhal

M Sulaiman Salaria

Vinay M Kargaonkar





Rohit Chaudhary

VS Yadav

Anil Kumar

V Murugesan





Narasingha Bhol

Ravinder Singh Yadav

Ajay Chaudhry

Rajesh Dewan





B Dayananda

Vijay Kumar Singh

Balbir Singh

Rajiv Ranjan Verma





N Sanjay

Satya Brata Bhoi

Anand Kumar

Amitabh Yash





Devendra Singh Chauhan

Anuj Sharma

Shivanand Jha

A Shankar Rao





Balaji Srivastav

Christopher Doungel

Sandeep Bishnoi

Gollapalli Nageswara Rao





Rajesh Kumar

M Nanjundaswami

BK Dak

Dalbir Singh Bharati





BS Jebalia

Anil Singh K Jadeja

K Vanniaperumal

Kewal Khurana





Dinkar Gupta

Hardeep Singh Dhillon

Ashok Kumar Rathore

Gyanwant Singh





Sanjoy Mukherjee

Aloke Prasad

Anil Kumar

C Chandrasekhar

























































For the complete list, see

gfiles inside the government

vol. 9, issue 12 | March 2016


Lok Sabha Members March 16, 2016 April 15, 2016

Lok Sabha Members March 16, 2016 April 15, 2016

Radheshyam Biswas

Col. Sona Ram Choudhary

Rajeshbhai N Chudasama

Sharadkumar M Bansode

AIUDF (Assam)

BJP (Rajasthan)

BJP (Gujarat)

BJP (Maharashtra)

CR Patil

Ramdas Chandrabhanji Tadas

Sandhya Roy

Rahul Ramesh Shewale

BJP (Gujarat)

BJP (Maharashtra)

AITC (West Bengal)

SS (Maharashtra)

DV Sadananda Gowda

PR Sundaram

Sumitra Mahajan

Jayasingh T Natterjee

BJP (Karnataka)

AIADMK (Tamil Nadu)

BJP (Madhya Pradesh)

AIADMK (Tamil Nadu)

Raosaheb Patil Danve

Devendra Singh (Alias) Bhole

BJP (Maharashtra)

BJP (Uttar Pradesh)

Devender Goud T

Sukhendu Sekhar Roy

Rajesh Pandey

Dilip M Patel

TDP (Andhra Pradesh)

AITC (West Bengal)

BJP (Uttar Pradesh)

BJP (Gujarat)


Jual Oram

Adhir Ranjan Chowdhury

Smriti Zubin Irani

AIADMK (Tamil Nadu)


BJP (Gujarat)

Sukhdev Singh Dhindsa













BJP (Odisha)

INC (West Bengal)

V Sathyabama

Parayamparambil K Biju

AIADMK (Tamil Nadu)

CPI-M (Kerala)

Om Prakash Yadav

Dushyant Chautala





BJP (Bihar)

INLD (Haryana)

Bharati Dhirubhai Shyal

Alok Sanjar

BJP (Gujarat)

BJP (Madhya Pradesh)



Jayadev Galla

Hukum Singh

TDP (Andhra Pradesh)

BJP (Uttar Pradesh)



Dev Varma (Moon Moon Sen) Prasun Banerjee



AITC (West Bengal)

AITC (West Bengal)

SR Vijayakumar

Md. Badaruddoza Khan

AIADMK (Tamil Nadu)

CPI-M (West Bengal)



Rajiv Pratap Rudy

Doddaalahalli K Suresh

BJP (Bihar)

INC (Karnataka)



For the complete list, see


gfiles inside the government

vol. 9, issue 12 | March 2016







Rajya Sabha Members March 16, 2016 April 15, 2016


Chandrapal Singh Yadav

SP (Uttar Pradesh)


AK Selvaraj


Birender Singh

SAD (Punjab)


BJP (Haryana)

Jaya Bachchan

S Muthukaruppan

AIADMK (Tamil Nadu)


SP (Uttar Pradesh)

Dola Sen

Jairam Ramesh

AITC (West Bengal)

INC (Andhra Pradesh)


Oscar Fernandes

INC (Karnataka)


Mani Shankar Aiyar


INC (Nominated)

Kiranmay Nanda

Shantaram Naik

SP (Uttar Pradesh)

INC (Goa)



PJ Kurien

Salim Ansari

INC (Kerala)

BSP (Uttar Pradesh)



Bhubaneswar Kalita

Najma A Heptulla

INC (Assam)

BJP (Madhya Pradesh)



K Rahman Khan

Bhupinder Singh

INC (Karnataka)

BJD (Odisha)




For a complete list of appointments & retirements, see


The 1979-batch IAS officer of the Kerala
cadre has been appointed the new Chief
Secretary of Kerala.

The 1981-batch IAS officer of the Gujarat
cadre has been appointed Vice-President
and Chief Investment Officer of newly
created Asian Infrastructure Investment
Bank (AIIB) as an Indian nominee.


The 1982-batch IAS officer of the
Manipur-Tripura cadre has been assigned
additional charge as Member (Finance),
Atomic Energy/Space / Earth Commission.

The 1983-batch IAS officer of the
Telangana cadre has been appointed
Chief Electoral Officer of the newly
created state of Telangana.

The 1983-batch IAS officer of the
Tamil Nadu cadre has been appointed
Additional Chief Secretary, Industries and
Commerce, in Tamil Nadu.

The 1985-batch IAS officer of the
Gujarat cadre has been appointed
Director General, Directorate General
of Hydrocarbons (DG, DGH) in the rank
of Additional Secretary for a period of
four years.

President Pranab Mukherjee with the Officer Trainees of the Indian Audit and
Accounts Service (IA&AS) of the 2015 batch



The 1985-batch IAS officer, Principal

Secretary, Finance, Government of
Jharkhand, has been given additional
charge as Development Commissioner of
the state.

The 2001-batch IAS officer of the Punjab

cadre has been appointed Director in the
Ministry of Road Transport, Highways
and Shipping.


The 2002-batch IAS officer of the Union

Territory cadre has been appointed
Deputy Secretary in the Election
Commission of India (ECI).

The 2000-batch IAS officer of the

Himachal Pradesh cadre has been
appointed Managing Director, HP
Tourism Development Corporation.

Moving On: IAS officers retiring in March 2016


Bhaskar Mushahary (1980)


Ramesh Kr Nimmagadda


Sudhir Kumar (1982)

Rameshwar Singh (1983)
Prabhakar Jha (2000)


Ramesh Krishan (1997)


Sajal Chakrabarty (1980)



SM Khanapure (2002)


Bishnu Prasad Sahoo (2001)

Nityananda Palai (2003)


The 2003-batch IAS officer of the
Uttar Pradesh cadre has been
appointed Additional Secretary to
the Chief Minister.

Madhu Sudan Sharma



The 2004-batch IAS officer of the

Manipur-Tripura cadre has been assigned
additional charge as Director, Agriculture
Marketing, in the Delhi Government.

CT Wangdi (2001)

Mohammad A Bukhari (1999) TAMIL NADU

Mohan Verghese
Chunkath (1978)
KS Sathyamurthy (1999)
NS Channappa Gowda (1999) UTTARAKHAND
S Raju (1983)

Dinesh Kumar Shrivastava

Madhusudan Prasad (1981)




Alok Ranjan (1978)

Brij Kishor Singh (1997)

The retired IAS officer has been appointed
chairman of the Punjab State Electricity
Regulatory Commission (PSERC).

The 1986-batch IFS officer has been
appointed the next High Commissioner of
India to the Republic of Botswana.

gfiles inside the government

vol. 9, issue 12 | March 2016



The 1979-batch IAS officer has taken
over as Chairman of the Brahmin
Welfare Corporation.

The 2012-batch IAS officer of the Himachal
Pradesh cadre has been appointed Sub
Divisional Officer (Civil), Nahan district,
Sirmour, in Himachal Pradesh.

The 2013-batch IAS officer of the Jammu
& Kashmir cadre has been appointed
Sub-Divisional Magistrate, Ramnagar, in
Jammu & Kashmir.

The 1990-batch IFS officer has been
appointed the next Ambassador of India
to the Socialist Republic of Vietnam.

Prime Minister Narendra Modi in a group photograph with the IAS probationers of
the 2015 batch at the Parliament Library in New Delhi on February 23, 2016. The
Minister of State for Development of North Eastern Region (I/C), Prime Ministers
Office, Personnel, Public Grievances & Pensions, Department of Atomic Energy,
Department of Space, Dr Jitendra Singh, the Secretary, DoPT, Sanjay Kothari, and
other dignitaries are also seen.

The 1979-batch IPS officer of the Union
Territory cadre has taken over charge as
the new Police Commissioner, Delhi.

The 1983-batch IPS officer of the
Jharkhand cadre, IG/Director, BPR&D,
has been appointed Additional Director
General in the Bureau of Police Research
and Development (BPR&D).


Vice President M.Hamid Ansari interacting with the Officer Trainees of the Indian
Foreign Service (2014 batch) in New Delhi on February 26, 2016.

The 1985-batch IPS officer of the Uttar

Pradesh cadre has been appointed
DG, Telecom.

Rajasthan cadre has been appointed Nodal

Officer for the implementation of Smart
Performance Appraisal Report Recording
Online Window (SPARROW) in Rajasthan.



The 1992-batch IPS officer of the

Rajasthan cadre has been appointed the
new Police Commissioner, Jaipur.

The 1986-batch IFS officer of the Himachal

Pradesh cadre has been appointed
Managing Director, HP State Handicrafts
& Handloom Corporation Ltd, in Himachal

The 1998-batch IPS officer of the Odisha
cadre has been appointed Deputy
Inspector General in the Central Industrial
Security Force (CISF).

The 2000-batch IPS officer of the AGMUT
cadre has been deputed as Private
Secretary to DV Sadanand Gowda,
Minister for Law & Justice.


The 2004-batch IPS officer of the


gfiles inside the government

vol. 9, issue 12 | March 2016


The 1986-batch IPoS officer has been


Justice JARAT KUMAR JAIN, Justice

appointed Chief Vigilance Officer (CVO) in

the Ordinance Factory Board (OFB).

The 1979-batch IRS-IT officer is the new
Member of the Central Board of Direct
Taxes (CBDT) (IT).

The IRS-IT officer has been appointed
Commissioner of Income Tax in the office of
Principal CCIT, Delhi region.


The 1992-batch IRSME officer has been
appointed Director in the Ministry of
Environment, Forest & Climate Change in
the Government of India.

The 1976 IAS officer of the Bihar cadre has
been re-appointed SEBI Chief for one year,
till March 1, 2017. He was given a two-year
extension earlier. the way

Skilling the top rung

Under Modis watch

epartment of Personnel and Training (DoPT)

of the top civil servants so DoPT has constituted a board
of National Facilitators who will run different training
Nath Bora. This high-powered group has planned high
Nations Development Programme. The programme will
start with the screening of Sydney Lumets 1957 classic,
12 Angry Men, to sharpen the leadership skills of top
bureaucrats, emphasising ethics and values through
pe so s with
t different
d e e t personalities
pe so
different backgrounds. The
Th focus will
be on bureaucrats comprehending
functioning of leadership,
relating to the
th traits and
and dealing
with multiple
in a complex and
two-day module on leadership at the request of the DoPT.
The entire programme will have the following ethos
interspersing all sessions accountability, creativity/
possibility thinking, going within, positivity, positive
vision and inspiring goals, actions: What is mine to do?
as per the course module. Leading a stress-free as well as
a wholesome life in all dimensions will also be a part of
asked to reach a unanimous decision on whether a person
is guilty or not, with the accused set to receive a death
win over his 11 colleagues. g

wo important resource-rich public sector

undertakings are on the radar of the
governmentthe National Mineral Development
Corporation (NMDC) and the Directorate-General
of Hydrocarbons (DGH). The NMDC is idle without
a permanent chairman, though Gopal Singh was
selected by the Public Enterprises Selection Board
(PESB) in July 2015 but there was no initiative from
the same time, there were also rumours about the
clandestine manner in which he was selected. Sources
disclosed that the PMOs silence is possibly because
it was aware about the modus operandi of the then
PESB chairman. It is now learnt that the Ministry of
Steel has scrapped the selection panel and a search
committee has been constituted to select a new and
competent candidate. Meanwhile in the DGH, the
cadre, has been appointed. He is at present working
Corporation Ltd. Chakraborty has served in the
districts of Vadodara, Sabarkantha and was Collector
the Finance, Home, Tribal Development and Labour
Departments. He has also worked as Principal
very carefully. g

gfiles inside the government

vol. 9, issue 12 | March 2016

57 the way

The cost factor

about what the surface of roads in India should
be like. This situation has come about because the
construction business is in recessionary mode. The
cement industry, particularly, is facing a crunch because
of low demand. So, members of the Manufacturers of
Cement Association (MCA) met the Minister for Road
Transport, Highways and Shipping, Nitin Gadkari, and
requested him to use a cement component in laying
highways. Gadkari patiently listened to them and then
suggested they should meet National Highway Authority
of India (NHAI) Chairman Raghav Chandra. Currently,

Now for some real news

upriya Sahu, IAS, has been recommended

by the Prasar Bharati Board as the next DG
Doordarshan. She will take charge after approval
from the ACC. But in the meantime, there seems to
be a lot of talk over her selection for the coveted job
in the nearly dead organisation. A large chunk of
lead a huge force of techno-programme cadre. The
Chairman of the Board too was heard to be fuming
over the coup. He even had a showdown with the
CEO. Sources reveal that to bring Doordarshan back
on rails, he was set to promote a professional culture
by inducting internal candidates. It is also learnt
that he had sounded both the Ministers, who gave
a nod to his scheme of things. In such a situation,
the unexpected somersault in the guise of Sahus
appointment has raised many an eyebrow. The
candidate is also being frowned upon. Is a group of
bureaucrats apprehending inconvenient times ahead,
behind this move? Are these bureaucrats trying to
hide something that is already known to others! g

analysis. But everyone knows there are two methods
consists of various layers of granular material with a
layer of bituminous materials on top. The other is rigid
pavement, which consists of cement concrete pavements
laid on a well-prepared granular sub-base. With the
international prices of bituminous materials slumping
by 25 per cent in February, the rigid pavement method
is obviously more costly. In addition, rigid pavements
exert more wear and tear impact on vehicles. In these
silence as they dont know what the Ministry would like.
MCA leaders are, meanwhile, knocking on the doors of
NHAI, but there appears to be no light on the road. g


gfiles inside the government

vol. 9, issue 12 | March 2016


Regn.No.DL(C)-14/1161/2016-2018 Licence No. U(C)-03/2016-17,

Licence to post without prepayment Posted on 7th & 8th of every month at SPM SRT Nagar,
Post Office, New Delhi 110055 R.N.I. No: DELENG/2007/19719.
`200, vol. 9, issue 11 | Date of Publication: 5/3/2016 | Pages 60