It was the scam of scams: Following a complaint by the Punjab National Bank (PNB), the Enforcement Directorate seized assets worth Rs5,100 crore during its extensive searches of jeweller Nirav Modi’s firms across five Indian States, including cities Mumbai, Delhi, Jaipur, Surat and Ahmedabad. Diamonds and gold from the billionaire’s companies yielded a haul few had imagined to exist. Modi and his crew scenting danger as the sleuths from the Central Bureau of Investigation (CBI) started closing on him, his family and his business associated fled the country for the sanctuary of Belgium (Nirav Modi, a Belgian citizen, holds a Belgian passport) and the United States. The investigation included officials of the PNB who have been arrested as accessories to the fraud.
The PNB (a nationalized bank) has initiated criminal proceedings against employees involved the scam. The bank’s head Sunil Mehta has promised remove the cancer of corruption – which is good to hear, but it will take more than routine assurances to convince a sceptical and cynical public. The words will have to be translated into deeds: further arrests is work in progress.
Scam undetected for seven years
Preliminary investigation into the scam worth Rs11,500 crore revealed a complete breakdown of the supervision and auditing system in the Punjab National Bank’s Mumbai branch and overseas branches of other concerned banks. The transaction were undetected for seven years, despite regular internal and external audits, raising suspicions of complicit bank officials (Hindu February 16).
Whistle blower
Ignored Bangaluru investor Hari Prasad alerted the Prime Minister’s Office (PMO) to the activities of Mehul Choksi, a close accomplice of Nirav Modi. His complaint was duly acknowledged by the PMO, which informed him that it had been forwarded to the Registrar of Complaints (RoC)for action, then a silence and further correspondence with the PMO. Prasad revealed: ‘Later on I came to know from Choksi’s people that they managed some people in the RoC and the matter is closed.’ The CBI has brought charges against Choksi’s three firms (Hindu February 17).
RBI data highlights loan fraud issues
Reserve Bank of India (RBI) data has revealed that state-run banks have reported 8,670 loan fraud cases totaling ($9.58 billion) over the last five financial years ending March 31, 2017. The figure exposes the magnitude of the problem in the banking sector, already under pressure following years of poor lending practices. Bad loans reached a record peak of around $149 billion last year (Hindu February 17)
Taxpayers foot the bill
Over the past 11 years three finance ministers – Pranab Mukherjee, P.Chidambaram and Arun Jaitley – the first two in Congress governments, the last in BJP - have pumped in close to Rs 2.6 lakh crore into government entities as their desperate need of funds as bad loans keep steadily rising. This year promises to be no better than earlier years as the country’s largest lender the State Bank of India announced its first quarterly loss in 18 years with others like the Bank of Baroda also returning poor figures. Perhaps the US experience has lessons for India. When the spate of accounting scandals at Enron, Worldcom, Tyco convulsed the US in 2000, policymakers altered the regulations of auditing, leading to the creation of the Public Company Accounting Oversight Board (Times of India February 19).
Privatize public sector banks
The Federation of Indian Chambers of Industry and Commerce (FICCI) has called for the privatization of public sector banks (PSBs), affirming that recapitalization efforts by government had failed to deliver the desired results. ‘Given the continuous pressure on the government finances on account of the weak performance of the banks, the government should consider privatization of PSBs,’ said FICCI President Rakesh Shah.
Save money for development
‘A dynamic banking sector is the need of the hour.’ Privatization would stem the present drain of the exchequer, and the money saved could be put to good use in development projects (Hindu February 20).
China’s barrage at Modi
China slammed Prime Minister Narendra Modi for visiting Arunachal Pradesh, to which it lays claim. It charged the Indian Premier for muddying the Sino-Indian relations by so doing and creating barriers to the solution of their boundary settlement. Beijing’s autistic policy is a counter-productive exercise which hasn’t the faintest chance of yielding the sought for result. The former Indian prime minister Manmohan Singh and the Dalai Lama provoked similar wrath for visiting the region. The irony lost on the Chinese leadership is that its invasion and occupation of Tibet1950 and the consequent flight to India of the Tibetan leader has been the true source of the troubled Sino-Indian relationship. Ritual incantations of Tibet being part of China from time immemorial cannot transform frayed factoid into indisputable fact ((Hindu February 16).
Four power belt, road
Australia, the US, India and Japan are engaged in a conversation on constructing a road and belt of their own to counter that built and promoted in the region and beyond by the Chinese government. Beijing’s threats, intimidation and blackmail in the South China Sea and elsewhere are simply provoking resistance and not compliance (Hindu February 20).
PM launches skills platform
Prime Minister Narendra Modi launched IT trade body Nasscom’s ‘Future Skills’ platform in Hyderabad last week. The project aims to initially upskill to 40 lakhs [4 million] IT employees and prospective job seekers in eight emerging technologies that could be drivers of future IT jobs. These include Artificial Intelligence, Virtual Reality, Robotic Automation, Big Data Analytics etc (Business Line February 20).
Senator for easier US entry for skilled jobs
Republican Senator Orrin Hatch moved amendments to to a White House-backed Immigration Bill to ensure easier access for high skilled, merit-based immigration laws that could benefit from technology professionals from countries such as India. ‘It’s immigration targeted at the best, the brightest, and the most highly educated. The amendments I filed today are focused, commonsense reforms that will make a real difference to our economy,’ sad Senator Hatch (Business Line February 16).
Fujisoft eyes Bengal for India hub
Japanese software giant Fujisoft is set to establish an innovation centre for embedded software in West Bengal A high level delegation led by Fujisoft American CEO and President Renhong Son along with other officials met with State Commerce and Industries Minister Amit Mitra and expressed their intention to invest in Bengal. Fujisoft delegation was accompanied to the meeting by Sumantrana CEO and founder Roopen Roy.
Company antecedents
A $1.6 billion Japanese-based company, Fujisoft has a presence across 11 countries and specializes in different types of embedded software, with a total workforce of 12,000 engineers. ‘It is a solid company,’ said Minister Amit Mitra, to the media after the meeting (Times of India February 20)
Image makeover for Uttar Pradesh
Long considered one of India’s most notorious badlands is undergoing makeover many of its despairing citizens an unalterable reality, appears to undergoing a transformation. Its social cancer was the linkage between crime and politics. Chief Minister Adityanath, a Yogi and improbable holder of the office moved centre stage from anonymity, thaks to Prime Minister Narendra Modi, the BJP’s mover and shaker.
Iron broom
The Chief Minister is using the iron broom against the State’s entrenched gangs, has given the police authority to wipe them out, come what may. This first step is accompanied by a series of other steps to make the State a magnet for business. Summed up, his priorities are jobs, law and order, and the revival of industry. On the eve of his first year in office, he shared his hopes for the next four years in a media interview. He said his aim in the last 10 months was to understand its problems, address them with unflinching resolve, and take UP into the uplands of prosperity and development. He claimed to have mapped out his strategy in strengthening agriculture and making small and medium sized industries the bedrock and driver of economic growth.
Implementation
Implementation will be key, say analysts. He has to show results in the four years left to him before the next election, when a proper audit of his achievements can be delivered (Mint February 19).
RIL vision for Maharashtra
Reliance Industries Ltd (RIL), India’s largest private sector company, and its global partners, are to set up India’s first integrated industrial enterprise in Maharashtra. This was announced by Mukesh Ambani, Chairman and Managing Director, RIL, at Maharashtra’s Investors Summit at Magneta Maharashtra Convergence 2018 in Mumbai. The total investment planned by RIL and its partners is a staggering Rs 60,000 crore. Ambani said his company had invested Rs 2,50,000 crore across India.
Maharashtra on roll
Maharashtra Chief Minister Devendra Fadnavis signed 4000 Memoranda of Understanding (MoUs) with global and domestic companies worth Rs 4.8 trillion at the above mentioned Investors Summit in Mumbai. Prime Modi laid the foundation stone for Mumbai’s second airport and inaugurated India’s largest container terminal at Mumbai’s Jawaharlal Nehru Port Trust built at a cost of Rs 719 crore (Mint February 19).
