Current Affairs - 21 December 2015

General Affairs 

6 Jammu And Kashmir Ministers Allegedly Haven't Filed Tax Returns

• SRINAGAR:  Six of the 11 ministers, who are second time legislators, in the PDP-BJP coalition government in Jammu and Kashmir allegedly have not filed income tax returns before contesting the state assembly polls last year.
  
  According to the affidavits submitted by the these ministers to the Election Commission, they had not filed income tax returns for the assessment year 2013-14 ahead of the assembly elections last year.
  
  While 11 ministers, including Chief Minister Mufti Mohammad Sayeed, had prior legislative experience before the 2014 elections, 14 ministers in the coalition government are first time legislators.
  
  Prominent among the ministers, who did not file their income tax returns, include Law and Parliamentary Affairs Minister Syed Basharat Bukhari, Horticulture Minister Abdul Rehman Veeri and Revenue Minister Javaid Mustafa Mir.
  
  Five of these six ministers belong to the PDP, while Public Health Engineering Minister Sukhnandan Kumar is the only BJP minister not to have filed the returns.
  
  Chief Minister Sayeed, his close confidante Education Minister Naeem Akhtar and BJP's Health Minister Chaudhary Lal Singh are among the five ministers who have filed their income tax returns for the assessment year 2013-14.
  
  Under section 271 F of the Income Tax Act, a penalty of Rs. 5,000 is payable if a person with taxable income fails to file returns.
  
  In case of tax evasion, criminal proceedings can be initiated against the defaulter.
  
  Legal experts maintain that not filing income tax return amounts to commission of an offence under the Income Tax Act.
  
  "Non-filing of the return is an offence. It amounts to concealing of the income," former Assistant Solicitor General of India and senior advocate Anil Bhan told PTI.
  
  Mr Bhan said while filing the returns was mandatory, it does not mean that a person has to pay income tax.
  
  "There are many people who file their returns regularly but do not pay any income tax as their income does not fall under taxable slabs," he said.
  
  According to Secretary Legislative Assembly Mohammad Ramzan, a legislator in Jammu and Kashmir draws a basic salary of Rs. 40,000 per month and gets allowances to the tune ofRs. 40,300.
  While chief minister gets an additional Rs. 10,000 as perks, a minister in the state gets Rs. 5,000 in addition to his emoluments as a legislator.
  
  "Filing of income tax returns and paying taxes is individual responsibility. I cannot comment on that, but I am sure the honourable MLAs must be doing it," Mr Ramzan said.
  
  Interestingly, only three of the 20 multiple-term legislators from the opposition benches in the assembly have not filed income tax returns before contesting polls last year.
  
  These include two from National Conference (Aga Roohullah and Shamima Firdous) and one from Congress (Abdul Rashid Dar).
  
  In the 87-member assembly, 56 are first-time legislators while 31 others, including former chief minister Omar Abdullah, have been members at least once before.

AAP Again Seeks Arun Jatiley's Ouster Over Alleged Scam In Delhi Cricket Body

• NEW DELHI:  Delhi's ruling Aam Aadmi Party (AAP) today again demanded the sacking of Finance Minister Arun Jaitley from the government after accusing him of corruption in the city's cricket board.
  
  Immediately after BJP lawmaker Kirti Azad detailed what he said were details of financial wrongdoing in the Delhi and District Cricket Association (DDCA), the AAP asked Prime Minister Narendra Modi to dismiss Mr Jaitley.
  
  Mr Jaitley had headed the DDCA for years. He has denied the accusations against him, and called Mr Kirti Azad "a Trojan Horse".
  
  "Jaitley is the Suresh Kalmadi of BJP," Aam Aadmi Party leader Ashutosh told the media, referring to the former Congress lawmaker who was linked to the alleged corruption in the 2010 Commonwealth Games.
  
  "He (Jaitley) should be immediately sacked," Mr Ashutosh added.
  
  Another AAP leader, Kumar Vishwas, wanted to know if PM Modi would continue to retain Mr Jaitley in his Cabinet even after knowing the details of the alleged corruption charges against him.
  
  Mr Vishwas said Delhi Chief Minister Arvind Kejriwal was the first person in the government "who tried to expose the corruption in DDCA".
  
  This was the only reason the CBI raided Mr Kejriwal's office on December 15 in the name of targeting his Principal Secretary Rajendra Kumar, he added.
  
  The CBI wanted to look into the file which contained the report of a three-member committee which - on Mr Kejriwal's orders - probed the financial irregularities in the working of DDCA.
  
  The Central Bureau of Investigation has denied searching Mr Kejriwal's office.
  
  "Kirti Azad has made it clear that Jaitley is the head of the (DDCA) scam. He should be removed," said Sanjay Singh, another AAP leader.

Sensitivity Should Be A Vital Element Of Policing: PM Modi

• RANN OF KUTCH:  Amidst mounting concerns over radicalisation of youths by ISIS and other terror groups, Prime Minister Narendra Modi today said sensitivity should be a vital element of policing.
  
  PM Modi also made a strong pitch for a "flexible instructional framework" under which police should establish links with local communities.
  
  "Sensitivity should be a vital element of policing and a flexible institutional framework should be built, which can help imbibe sensitivity towards citizens in the police force," he said addressing the concluding session of the three-day DGPs conference in Rann of Kutch.
  
  The Prime Minister told nearly 100 top police officers of the country that local communities must be taken into confidence in policing and technology should be used in tackling crimes.
  
  

  "Police forces should establish links with local communities and one way of doing this is to celebrate the successes and achievements of people in the community," he said.
  
  The Prime Minister said when people visit police stations to celebrate their achievements, they would also develop a greater understanding and respect for the work done by police officers.
  
  In this exercise, people people in a community should identify with police stations, he said.
  
  Police in Andhra Pradesh, Maharashtra, Karnataka and Delhi have involved family and community elders in deradicalisation of a few youths who allegedly came under the influence of Middle-East terrorist group ISIS recently.
  
  PM Modi also sought greater interaction between the police forces of neighbouring districts across inter-state borders.
  
  "The Prime Minister touched upon subjects such as cyber-security, digital technology and social media, and said police officers should use emerging technologies effectively in their work," an official statement said.
  
  Expressing happiness over the quality and depth of the discussions during the three-day conference, he observed that this was an indication of the dedication and professional competence of the police force.
  
  He called for a clear roadmap to implement the recommendations that emerged from the conference.
  
  The Prime Minister said the discussions and inputs involved both junior and senior officers, from across the country, and this had helped break silos, which is a significant achievement.
  
  PM Modi also spoke on the subjects of tourism policing, disaster management and police training.
  
  The Prime Minister praised the dedication and selfless service put in by the police officers, and their commitment to duty, which he said was the essence of the nation's security, the statement said.
  
  The Prime Minister also gave away the President's medals for distinguished service to IB Officers.
  
  Earlier in the day, the delegates discussed the subject of police universities, and forensic science university.
  
  Home Minister Rajnath Singh, Ministers of State for Home, Kiren Rijiju and Haribhai Parthibhai Chaudhary were present at the conference was organised by Intelligence Bureau.

Focus On Ground Realities Than Making Cities Smart: Shiv Sena Chief

• MUMBAI:  Shiv Sena chief Uddhav Thackeray today asked the BJP-led Centre and the Maharashtra government to pay attention to ground level issues plaguing the people before focusing on Smart City project.
  
  "Before focusing on Smart City project, the government should first focus on mitigating the drinking problems of people. Women in villages need money for their basic survival," Thackeray said while addressing a gathering in Jalgaon.
  
  Shiv Sena is the partner in both the government at the Centre and in Maharashtra.
  
  Referring to the incident where a 16-year-old daughter of a farmer in drought-hit Latur district of Marathwada allegedly committed suicide by consuming pesticide as her debt-pressed parents could not buy her a monthly state transport 'bus pass' to commute to college, Mr Thackeray said that a minister who has no time to listen to the woes of the people, has no place in his party.
  
  

  "It is shameful that families in Maharashtra do not have the money to educate a girl child. After Swati Pitale's (the Latur girl) suicide, I immediately called up Transport minister Diwakar Raote to find a solution to the problem.
  
  "Due to his efforts, Maharashtra State Road Transport Corporation (MSRTC) decided to waive the fee completely for the students of first-year junior college and above in the eight drought- affected districts of Marathwada. Around 4.60 lakh students are benefiting from this scheme," he said.
  
  He further said that his party is focusing on improving the conditions of farmers in the state and that it will live up to the aspirations of the people.
  
  "A minister who has no time to listen to the problems of people has no place in the Sena. We do not oppose the government for the sake of opposing but have the courage to oppose what is not beneficial for people. We will live up to the expectations of people," the Sena chief said.

Odisha A Priority State For Indian Railways: Minister Manoj Sinha

• BHUBANESWAR:  Indian Railways is trying to broaden the rail network in Odisha as it is a priority state for the Centre, Minister of State for Railways Manoj Sinha said in Bhubaneswar today.
  
  "Indian Railways is trying its best to further broaden the railway network in Odisha to make it as one of the finest in the country," Mr Sinha told reporters after reviewing progress in the East Coast Railways zone in Bhubaneswar.
  
  Replying to a question on alleged negligence towards Odisha by the Railways, Mr Sinha said "In the last two Railway Budgets, the state got more allocations. They were more than the state government's expectations."
  
  "It is our priority and the special interest of the Prime Minister to invest more in states like Odisha," he said.
  
  On the review of railway projects in the state, Mr Sinha said "I had detailed discussion on the project works completed last year, the ongoing project works to be completed this year and the future action plan for infrastructure development to provide better railway service in Odisha in the coming days."
  
  Unconnected areas of the state would be given priority in linking and "All new projects to be expedited with early tendering," he said.

Business Affairs 

Business Today MindRush 2015 kicks off in style

• The major areas that the government is focusing on are agriculture, start-ups, bankruptcy laws and ease of doing business, says Jayant Sinha, the Minister of State for Finance.

  He was speaking at the third edition of Business Today MindRush. Sinha said the government is likely to make a big announcement on strat-ups in January 2016. Dismissing the perception that despite all the big promises by Prime Minister Narendra Modi, there has been no substantial work done on the ground, Sinha pointed out that exemplary work has been done by the government in developing infrastructure, overhauling the financial sector and taxation.

  Business Today MindRush, an annual event to celebrate the best talents and achivements of corporate India, could not have gotten on to a better start than Sinha's resounding pronouncement of Acche Din Aane Wale Hain (better days are soon coming).

  Prosenjit Datta, Editor, Business Today, who began the proceedings by highlighting the challenging business environment, said that technology and start-ups are redefining businesses.

  Stressing on the fact that the domestic economic environment have not improved as quickly as many had hoped for, he said that though the government has taken steps to kickstart the economy, there are concerns on many fronts.

  Addressing the gathering, Aroon Purie, Editor-in-Chief, India Today Group, said though the National Democratic Alliance government has got clear majority and despite the great 'desires' it has not been able to carry out the reforms the way it should have.

  The event started with a debate on 'How Family Businesses ought to be Handling Professionals', where the panelists - K.B.S. Anand, MD & CEO, Asian Paints; Sunil Duggal, CEO, Dabur India and Jayadev Galla, Vice Chairman & MD, Amara Raja Group - concluded that for family-owned businesses, professionals need to be made partners in creating wealth for the organisation. The promoters need to think and behave like entrepreneurs.

  Speaking on 4G and How It Will Disrupt Business and Life, Himanshu Kapania, MD, Idea Cellular, said that mobile broadband will witness a lot of action with the introduction of 4G services. Over the next few years, 4G will become the central point of discussions around telecom and communications.

  One of the main attractions of the event was the handing over of the awards to the winners of Business Today's Best CEOs. The winners included Siddhartha Lal, CEO, Eicher, Arundhati Bhattacharya of State Bank of India, and Vineet Nayyar of Tech Mahindra.

  The first day of the event culminated with the insightful views of Arundhati Bhattacharya, Chairman of SBI. "A CEO should be a visionary, have the ability to take decisions and have effective communication skills to put their organisations on the growth path in times of difficulty," she said.

MindRush 2015: This is a pro-poor, pro-market government, says Jayant Sinha

• At a time when the winter session is on the verge of being wiped out because of the opposition's uproar, the Minister of State for Finance, Jayant Sinha, emphasised that the  . The minister, in his speech to the India Inc., assured that the government is committed to facilitate ease of doing business, rationalise tax and ensure that competitiveness in businesses can be encouraged.

  The minister said the government is working on three key principles: it is pro-poor, pro-market-competitiveness and co-operative federalism. He said that the government has worked out a social security safety net for the poor. The NDA government, through various schemes, managed to open bank accounts for most of the countrymen in the lower strata. The social sector schemes are disbursing payments and subsidies directly into their bank accounts.

  "All these are historic steps that the NDA has taken and would transform the way the poor are treated. There will be no middle-man, the poor will get their money directly in their accounts," Sinha said. We are increasing the reach of banks, and licences for payment banks, commercial banks and deposit banks have been issued. This will not only increase the reach, but will also transform the way banking is done today. We are reducing corporate tax from 30 per cent to 25 per cent, as well as removing all the exemptions. "Most will agree that there is a series of litigation at various levels only because of exemptions. We are doing away with this," he announced.

  Sinha further added that the government is bullish on investments in the infrastructure sector; this includes power, roads and railways, among other verticals. "Railway Minister Suresh Prabhu has prepared the blueprint for an investment of Rs 8.56 lakh crore by 2019. Some quarters are criticising the country's plan to invest in bullet trains; I am sure they haven't gone through the numbers. JICA is providing loans at 0.1 per cent, and the payouts will start after 15 years. This is a good deal," he added. Similarly, he said, Road Minister Nitin Gadkari is able to accelerate road construction from 3 kms per day to 18 kms per day.

  "Critics may say that there are no big bang reforms. But, I believe that 'big bang', like beauty, lies in the eyes of the beholder," he remarked. He said that they are working with the state governments to improve the ease of doing business. The Indian establishment believes that India may become one of the top 100 countries with respect to the 'ease of doing business' parameter in World Bank's annual report. "The target is to get in to the top 50 in the corresponding year," he confidently said.

  "Achche din aa rahe hai (good days are approaching)," the minister reinstated. This was one of the poll planks of Prime Minister Narendra Modi promising large-scale reforms. In the last 18 months, however, the opposition has taken a dig at Modi's plank in various assembly elections.

  He added that the government is committed to get the goods and services tax (GST) cleared by Parliament. "Through masterful efforts and deft handling of negotiations with most of the states, we were able to build consensus on the GST issue," he said, adding that it was imperative that the principal opposition came on board too.

  Earlier in the day, the Chairman of the Rajya Sabha - upper house of the Parliament, called an all-party meeting and it is expected that the House may clear various other bills, including amendments in labour laws and Electricity Act; but there is no assurance on GST. "The time has come to pass GST. I implore my colleagues in the opposition to comply," Sinha urged. 

MindRush 2015: CEOs must lead by example, says Arundhati Bhattacharya

• A CEO should be a visionary, have the ability to take decisions and have effective communication skills to put their organisations on the growth path in times of difficulty, says Arundhati Bhattacharya, Chairman of the country's largest bank, State Bank of India.  

  Delivering a special address on the theme "How to take control of uncertainty by seeing through the bend round the corner" at Business Today's flagship event MindRush 2015 in New Delhi, Bhattacharya said to keep pace with the fast-changing business environment, one has to adapt to technological advancements,  or face the ignominy of falling behind peers and competition.

  "Tension is causing people to opt status quo. And, that is where leaders are needed. They should have the ability to take decisions, communicate them properly and walk the talk," said Bhattacharya.

  Elaborating on the CEO being a  visionary, she said a successful leader should have the ability to draw the bigger picture out of a few data points in hand to prepare the organisation for the future.

  Bhattarchaya, who received Business Today's  Best CEO award in the Super Large Company category and the Champions of the Champion award, pointed out how SBI, a public sector bank, has been ahead of time in introducing new businesses in the country. "When nobody thought about investment banking, we set up the capital market division. As far as 16 years back, we went for universal computerisation" she said.  

  Similarly, she highlighted the importance of the ability to take quick and decisive decisions without being either autocratic or too democratic. "You give them (even the last mile operator or executive) the voice, but you are ultimately the decision maker."

  Effective communication was the third important piece of advice Bhattacharya had for successful leaders in times of difficulty.

  "For me the ability to communicate is important. I run an organisation of 220,000 people, working in the remotest locations of the country and the world. How do you get to them to be a part of your organisation? How do you get them to be a contributing member?" she said.

  Finally, she advocated the need to walk the talk. 

MindRush15: Don't pass the buck, says Bill Hawkins

• What are the challenges effective leaders run into? Bill Hawkins, leadership development expert and executive coach, shared his insights at Business Today's annual conclave Mindrush 2015.

  It turns out that the I-can-succeed mindset of the successful has its downsides. Hawkins elaborated why.

  1. Most successful people in the team resist change. They have a great belief in previous successes, and tend to be delusional and superstitious.  
  2. Successful executives also tend to overrate their performance - at the same time, they may discount the opinion of people who don't match up to their worldviews.
  3. Successful people are optimists - optimism is a key predictor of success. However, optimists tend to over-commit. Chances are, if you over commit, you may under deliver. Remember Infosys?Narayana Murthy's Infosys always under promised and over delivered.

  
  

  Hawkins went on to list a few annoying habits that can hold you back from reaching the top: 

  1. Winning too much - it is not always about being right, it is about being effective.
  2. Adding too much value
  3. Passing judgement on others
  4. Starting conversations with "No", "But" or "However"
  5. Telling the world how smart you are; excessive need to be "Me"
  6. Speaking when angry; you don't listen when angry
  7. Withholding information
  8. Failing to give proper recognition
  9. Passing the buck
  10. Claiming credit that you don't deserve

  A valuable to-avoid list for leaders. And, if you still don't know what to do, ask - peers, customers and other stakeholders.

USFDA warns Sun Pharma for violating manufacturing standards

• Country's largest drugmaker Sun Pharmaceutical Industries said it had received a warning letter from the US Food and Drug Administration for violating manufacturing standards at its Halol plant in Gujarat.

  Analysts looking at the developments believe the warning indicates the agency is not satisfied with remedial process taken by Sun Pharma despite the company claiming the remediation process was "on track".

  They also said the move could hurt the company as the period of uncertainty now gets prolonged and the normalisation process could now take even longer. This is bad news for the company because Halol is one of the important facilities for Sun Pharma.

  This plant was being leveraged for many of its new and high margin products (read: injectables and eye drops for example), for instance, Lipodox, a key ovarian cancer drug.

  As actual contents of the warning letter are yet to be disclosed, analysts are keen to know what USFDA expects the company to do now. They believe Sun Pharma may have responded to the USFDA inspection observations with some large scale remediation plan and has put in place a remediation process with significant investments into automation and in training to enhance its quality systems and has also engaged external consultants.

  While no one is able to quantify the damage or the extent to which there could be any incremental hit, if any now, analysts feel it is certainly a very major area of worry for the company.

General Awareness

Indian-origin politician Designated to Chair S Africa’s FinMin

• • Widely respected South Africa’s finance minister (2009-2014) and 66-year-old Veteran Indian-origin politician Pravin Gordhan has been appointed South Africa’s new Finance Minister by President Jacob Zuma.

    • He will replace David van Rooyen who was appointed on 10 November 2015.
    • Gordhan’s appointment raised the Rand up almost 5%.

    Gordhan would be responsible to ensure fiscal discipline in government spending and work with the financial sector to bring about stability.

    About Pravin Gordhan
    In 2009, President Jacob Zuma appointed Gordhan as Minister of Finance.

    • From 1991 and 1994, he chaired the Convention for a Democratic South Africa.
    • He was previously the Commissioner of the South African Revenue Service (SARS) from 1999 to 2009.
    • In 2014, Gordhan was appointed as the Minister of Cooperative Governance and Traditional Affairs.

    Honorary degrees

    • University of South Africa, Honorary Doctor of Commerce
    • University of Cape Town, Doctor of Law (Honoris Causa)
    • Central University of Technology, Doctor of Technology (Honoris Causa)

    Credit agency Fitch downgraded South Africa on December 4, leaving the continent’s most sophisticated economy just one notch above junk status. South African economy has been under strain recently but is still the second-largest economy in Africa behind Nigeria.

    Keys
    South African Capitals – Pretoria, Cape Town, Bloemfontein
    South African Currency – South African Rand