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Current Affairs - 30 July 2017

General Affairs 

Election Commission Reacts To Congress SOS, Seeks Answers From Gujarat
  • Its Gujarat lawmakers safely sequestered in a luxurious Karnataka resort hundreds of kilometres away, senior Congress leaders headed to the Election Commission in Delhi on Saturday accusing the Gujarat government of trying to arm-twist and lure its lawmakers ahead of the 8 August elections for the three Rajya Sabha seats from Gujarat.

    By evening, the Election Commission ordered Gujarat Chief Secretary to inquire into the charges and report back with his findings by Monday 5 pm. The commission also directed the state government "to ensure proper security to all the legislators and their family members".

    The poll body's directives followed the Congress' allegation that the ruling party machinery had even used the police to round up its lawmakers and dragged them into vehicles.

    "There is horse-trading happening in the state of the Prime Minister... There is nothing sadder than this for our country and democracy... that the ruling party is stealing legislators," Ghulam Nabi Azad, senior Congress leader and the Leader of the Opposition in the Rajya Sabha said after meeting the Election Commission.

    The meeting came hours after the Congress herded its lawmakers to a recreational spot in Bengaluru last night where they have been placed under the watchful eyes of the Karnataka power minister DK Shivakumar's brother.

    The Congress desperate appeal for the election body's intervention came after six of its lawmakers, all loyal to veteran politician Shankersinh Vaghela quit the party and there was speculation that a few more may be on their way. Three of them have joined the BJP.

    Mr Vaghela, who was in the BJP in the nineties, had been unhappy that he wasn't going to be the Congress' chief ministerial candidate. His exit was widely expected to be a setback to the Congress in the assembly elections. The party hadn't anticipated its losses could begin much earlier. 
    The BJP has the clear numbers in the assembly to win two seats to the Rajya Sabha in the election. It has nominated BJP chief Amit Shah and Union Information and Broadcasting Minister Smriti Irani for these two.

    The Congress eyed the third seat for Ahmed Patel, the powerful political adviser to Congress president who would earlier have had a comfortable win.

    Not any longer. By quitting the assembly, the Vaghela loyalists have reduced the strength of the house, which means that while Ahmed Patel will need fewer votes to win. But this also holds true for the BJP and gives them a fighting chance to dislodge Mr Patel.

    Challenging Mr Patel is a close relative of Mr Vaghela and the Congress's chief whip in the assembly, Balwantsinh Rajput. He was among the first ones to quit the Congress and immediately joined the BJP that nominated him as its candidate.

    "A party which does not have enough MLAs to field a third candidate has stolen an MLA from the Congress and puts that individual as a candidate... Such a thing has never happened before," said Congress' Anand Sharma.

    Gujarat Chief Minister Vijay Rupani brushed off the charges but not after taking pot-shots at the Congress. "You have taken them (lawmakers) to Bengaluru... taken away their mobiles. That means Congress doesn't trust them enough," he said. "Anyway what does it have to do with us... This is Congress internal affair".

Nitish Kumar's New Bihar Cabinet Takes Oath After Trust Vote Success
  • Bihar Chief Minister Nitish Kumar today formed his cabinet with 27 ministers -- 14 from the JD (U), 12 from the BJP and one from the LJP-- a day after winning the trust vote.

    The ministers were administered the oath of office at a function at the Raj Bhawan in Patna by Governor Keshri Nath Tripathi this evening.

    Mangal Pandey, who is also BJP in-charge of Himachal Pradesh, was away in Shimla and could not attend the ceremony.

    However, he was sworn in later at the Raj Bhavan after he arrived by a chartered flight from Chandigarh.

    Only Mr Kumar and Sushil Modi were sworn-in as the chief minister and the deputy chief minister on July 27 and the ministry was expanded a day after the new JD(U)-NDA government won the confidence vote in the Bihar Assembly.

    Besides Mr Kumar and Sushil Modi, Union minister and LJP chief Ramvilas Paswan and Speaker of Bihar Assembly Vijay Kumar Choudhary attended the swearing-in ceremony.

    No one from RJD or the Congress, who are now in the opposition, was seen at the ceremony.

    Also absent was former chief minister Jitan Ram Manjhi, who is the lone MLA of his Hindustani Awam Morcha, a BJP ally. He is away in Delhi where he has reportedly gone to meet President Ram Nath Kovind and BJP leaders.

    In the 243-member Bihar Assembly, a maximum of 37 persons can be made ministers as per constitutional provisions. So eight berths are still vacant.

    Vijendra Prasad Yadav of the JD(U) was the first to take oath, followed by BJP's Prem Kumar, who was Leader of Opposition during the Grand Alliance government. Then came the turn of JD(U)'s Rajiv Ranjan Singh Lallan and BJP's N K Yadav in the pecking order.

    Manju Verma of Nitish Kumar's JD(U) was the lone woman minister to be sworn in. She was minister for women empowerment in the previous Grand Alliance ministry.

    In the NDA quota, while 12 ministers are from the BJP, one is from its ally - the LJP. Pashupati Kumar Paras, who is the brother of LJP president and Union minister Ramvilas Paswan was made a minister.

    Paras is not a member of either house of Bihar. The LJP has two MLAs in the current assembly and they voted in favour of the confidence vote yesterday.

    The RLSP, another NDA ally, also went unrepresented. Reports in a section of the media suggested the ministerial berth for Union minister Upendra Kushwaha's RLSP, which has two MLAs and voted for Mr Kumar, was at the last minute given to the LJP.

    When mediapersons asked Paras about this, he said, "I took oath as a minister on the decision of the party and the direction of Chief Minister Nitish Kumar."

    However, RLSP ministerial hopeful Sudhanshu Shekhar, who attended the swearing-in, expressed unhappiness over the denial of berth to the party.

    "Not only me but all the party members are unhappy over the denial of a ministerial seat to the RLSP... Our party leader (Kushwaha) will take a decision on the matter," he told PTI.

    Mr Kumar had on July 26 dumped the earlier Grand Alliance government comprising his JD(U), the RJD and the Congress and joined hands with the BJP to form a new government.

    He has, however, deftly maintained JD(U)'s supremacy in the cabinet as it has more ministers than other NDA allies.

    The JD(U) has a strength of 71 in the present house, BJP 53 and other NDA parties 5.

    The JD(U) retained all 12 ministers from the Grand Alliance government and inducted two new members- Dinesh Chandra Yadav and Ramesh Rishideo.

    Induction of Mr Yadav, a close confidant of Sharad Yadav is seen as an attempt to mollify the senior JD(U) leader, who is reportedly unhappy over Mr Kumar's decision to dump the Grand Alliance and align with the BJP.

To Recoup Lost Political Ground, Mehbooba Mufti's Challenge to Centre
  • At her first major political rally after last year's unrest in the Kashmir valley, Chief Minister Mehbooba Mufti on Saturday pitched for deepening cross-border exchange with Pakistan-occupied Kashmir, political consensus to take steps to end the bloodshed in the state and "heal the pain" of Kashmiris.

    She also vowed not to allow the Centre to shut down the Uri-Muzaffarabad trade route just because some mistakes had been made. Drugs come from the Wagah border too but nobody talks about shutting it. "There should be (full) body scanners (for trucks) so that we know what is coming in and what is going out from here," she said, pitching for more trade routes.

    The National Investigation Agency was reported to have favoured stopping this trade route because there had been instances where it was used to finance terror. A few days back, nearly 70 kg heroin was also seized from a truck entering from PoK.

    Chief Minister Mehbooba Mufti was speaking at the foundation day rally of the Peoples Democratic Party that her father founded in 1999, building on perceptions in the valley that the Farooq Abdullah government was leaning too heavily in favour of Delhi.

    As it expanded its base over the next decade or so, the PDP didn't attempt to disguise that its symbolism and rhetoric echo a soft separatist sentiment. Its shrill campaign against the BJP in the last assembly election won the PDP its highest tally but the PDP-BJP alliance has cost her political capital, leaving a widening vacuum in the state.

    Over the last week, Ms Mufti has attempted to recoup some of the lost political ground. 
    When Kashmiri separatist leaders including Shabir Shah were arrested and bundled off to Delhi within the last one week, she made her displeasure known. At an event in Delhi on Friday, she went ahead to warn that no one would be left to shoulder the tricolour in the state if the special status was tampered.

    Ms Mufti also frowned at the arrest of separatist leaders, asserting that such administrative steps would not resolve the state's problems.

    Picking up from where she had left, Ms Mufti today called for revival of the dialogue process, underling that the state "was facing an ideological challenge".

    "And you cannot imprison an idea, you cannot kill an idea," she said, hinting her disapproval to the centre's approach to contain the problem in the state by security measures and economic packages alone.

    The PDP president also spoke about student exchanges so that children living on either side of the Line of Control could get to know each other better and even filling up 24 seats in the Jammu and Kashmir assembly - meant for the territory under Pakistan's occupation - that have remained vacant.

Terrorism Should Not Be Used As A 'Card' By Some Nations: India At UN
  • India has cautioned against the use of terrorism as a "card" by some nations, underlining that it is an international threat that should not be allowed to serve national strategy.

    India's Permanent Representative to the United Nations Ambassador Syed Akbaruddin, addressing a General Assembly session on UN Global Counter-Terrorism Strategy, said while nations deal with the threats posed by terrorism, "we must resist the temptation of buying individual peace for ourselves by striking deals that divert terrorists elsewhere."

    "We need to intensify our efforts in persuading states to refrain from using terrorism as a card in the games that nations play. While non-state actors such as terrorists think global, we representatives of States alas, are thinking only nationally," he said yesterday.

    Mr Akbaruddin also warned against the dangers of discrimination among terrorists - "good or bad or yours and mine," emphasising that terrorism is an international threat that should not be allowed to serve national strategy.

    "We need to move beyond discouraging state sponsorship of terrorism and take the next step of building effective inter-state cooperative mechanisms to combat it. If cooperation is to thrive, Inter-Governmental organisations such as the UN need to be strengthened to deal with the substance of these threats," he said.

    Mr Akbaruddin added that the list of the international community's collective limitations in dealing with the threats posed by terrorists is too long and self-evident to be recalled in its entirety.

    "Imagination and integration remain two of our major shortcomings as individual nations and collectively as the United Nations. These have caused much distress at crucial times." 
    He stressed on the need for "honest introspection" to pressing concerns such as from where do the terrorists get their training and financing. "While addressing our limitations, we must do an honest introspection. There are important issues today before the international community that beg answers. Where do potential terrorists go for training? How does their financing work? What are we doing to disrupt the eco-systems that promote terror startups? Do we know the answers and yet choose to look away," he said.

    India also voiced concern over the international community's reaction to terrorism in some geographies being different from others. "We are currently witnessing the impact of the Middle East on Europe, a development that was waiting to happen and yet not anticipated! In South Asia, we are witnessing the international community's efforts of combating terrorism being affected by a fatigue of a long-drawn war in Afghanistan," he added.

    Mr Akbaruddin described nuclear terrorism, radiological terrorism and cyber terrorism as "apocalyptic threats" that have emerged as "ruthless" non-state actors evolve their ideology and adapt strategies to strike deeper roots and explore different avenues to threaten innocent populations of established States.

    He reiterated the need for an early conclusion of the Comprehensive Convention on International Terrorism, saying it will reflect the unwavering common commitment to cooperate in combating terrorism.

    He expressed hope that the creation of the Office of Counter Terrorism will encourage an 'all of UN' approach while addressing the scourge of terrorism.

    "It is possible that some aspects of this approach may appear overly ambitious given the turf battles common at such fora. However, we must not set ourselves a low bar," he said.

China Unlikely To Gain Anything From Border Standoff With India: US Expert
  • China is unlikely to gain from the border standoff with India as the road being built by it in the Sikkim sector's Doklam area leads to nowhere and the move would push India closer to the US and Japan, an American expert said on Friday.

    The standoff will also add to the mistrust among the generation of young Indians who don't have a lot of experience with conflict with China, Jeff Smith, director of the Asian Security Programmes, Kraemer Strategy Fellow, at the American Foreign Policy Council, said.

    It will, in fact, push India closer to the US and Japan, and generate an anti-China sentiment in India, he said. "What are the stakes for China? It's on a road to nowhere, essentially," he told a Washington audience during a panel discussion on the India-China border standoff.

    "I'm not exactly sure what China gets out of building this road. We know what the outcome is going to be, it's souring ties with India significantly."

    "It's giving the Indian military all the ammunition it needs to lobby for more upgrades, to order infrastructure, to push India closer to the US and Japan as it's been moving already, something that China says it doesn't want," he said at the event organised by Woodrow Wilson International Centre.

    "Opinions of China are not very high in India to begin with, but there has not yet been a crisis like this in recent memory that would galvanise public opinion against China."

    "It's not clear to me exactly what China's going to achieve or what strategy or goals it's advancing by taking an uncompromising position on this dispute," the American expert said. 
    On the other hand, stakes are very high for India. The stakes for India are quite clear and very high. Chinese control over this territory would not only nullify the one place over the line of actual control where it has a significant tactical advantage, but it would position Chinese forces near its very vulnerable Chicken's neck and in the eyes of India's military planners, present an existential threat, he said.

    Nirupama Rao, who served as India's envoy to China and the US, said the relationship between India and China, which was so carefully constructed over the last three decades, "seems to be disintegrating before our very eyes and it is all happened in a space of four to five weeks".

    "If China were to consolidate its presence of Doklam and not move out of there, essentially what you have is the pushing southward of the border line between Bhutan and China in that section, and a certain strategic advantage being offered thereby to the Chinese in terms of their ability to overlook the south Siliguri Corridor, with obvious strategic implications for India," Ms Rao said.

    Robert Daly, director, Kissinger Institute on China and the US, said that China's goal is most likely simply to consolidate its control over what it sees as its sovereign territories, during what it calls the period of strategic opportunity when time remains on its side.

    According to Michael Kugelman, deputy director and Senior Associate for South Asia at the Wilson Center, while these border standoffs are nothing new, there's a reason to fear this one could be a lot more serious than any of previous ones for several reasons. "First, overall bilateral relations between India and China are quite tense at the moment. Second, this dispute involves a third country Bhutan. Third, this plateau is highly strategic real estate to say the least. It leads to the Siliguri Corridor, a narrow area of land that connect North Eastern India to the rest of the country. Fourth, the rhetoric on both sides, and notably from the Chinese media, has been noticeably sharp and strident. And fifth, perhaps most importantly, this dispute has set a potentially destabilising new precedent," Mr Kugelman said.

Business Affairs 

    Over 12 Lakh Businesses Applied For New GST Registration
    • Over 12 lakh businesses have applied for fresh registration under the Goods and Services Tax (GST) regime, Revenue Secretary Hasmukh Adhia has said.

      Of these, while 10 lakh applications for registration have been approved, 2 lakh are still pending approval.

      "The figure of new registrations approved in GST crosses 10 lakhs today. About 2 lakh applications pending in process," Revenue Secretary Hasmukh Adhia tweeted. 
      Businesses have time till July 30 to register under the GST.

      Also during the course of the year, if a business becomes liable to register under GST, it needs to apply for registration within 30 days from becoming liable for it.

      Although businesses with turnover of up to Rs. 20 lakh are exempt from GST and hence registration is not mandatory, traders and manufacturers are getting themselves registered so that the input tax credit can be passed on in the supply chain.

      When a business registers under GST, it is given a provisional GSTIN. After that, in the second stage, the business has to log in to the GSTN portal and furnish details of its business including the main place of business, additional place, directors and bank account details.

    Enforcement Directorate Attaches Rs. 300 Crore Assets Of Rose Valley Group
    • The Enforcement Directorate (ED) has attached Rs. 300 crore assets of Rose Valley group in its ongoing probe against the chit fund company for money laundering, an official said on Saturday.

      The attached properties include six hotels in West Bengal, Assam and Bihar, 17 acres of an amusement park in Tripura, office space of 146,364 square feet in Kolkata, 11,445 square feet land in Bhubaneswar, 13 pieces of land, three flats along-with garage space acquired by the company in one of the best residential society of Kolkata.

      "The attached properties of Rose Valley group of companies and its Chairman Gautam Kundu worth book value of Rs. 113.76 crore and having market value of around Rs. 300 crore," an ED statement said. The chit fund company is now under the scanner of the ED and the Central Bureau of Investigation, and its sole proprietor and Chairman Gautam Kundu was arrested in Kolkata in March 2015 and is still in judicial Custody.

      The ED investigation revealed that Rose Valley group of companies collected more than Rs.17,000 crore from the public at large throughout India by luring depositors with false promise of high return or interest on their deposits.

      "Around Rs. 8,600 crore remain outstanding to the public by the company which diverted and siphoned the amount through cheating and has no real business to repay this amount," an ED official said.

      The official said the ED had earlier attached Rose Valley's property having market value of around Rs. 1,650 crore which includes several hotels, vehicles, land and cash amounting to around Rs. 350 crore.

      "With this attachment, the total market value of properties attached in Rose Valley group of company cases has reached around Rs. 1,950 crore," he added.

    IRDAI Asks ICICI Prudential To Take Over Sahara's Insurance Business
    • Insurance regulator Irdai today asked leading private sector life insurer ICICI Prudential Life Insurance (IPRU) to take over the business of beleaguered Sahara India Life Insurance (SILIC), with effect from July 31.

      IPRU shall ensure that systems are integrated within a period of one year from the appointed date, Irdai order said.

      Embattled Sahara group chairman Subrata Roy had met Irdai chairman to seek more time to resolve the crisis at his life insurance arm on July 24. ICICI Prudential had submitted a valuation report to the regulator to take over the company on the same day. 
      It was last month that Irdai had appointed an administrator to run the crippled Lucknow-based Sahara Life due to governance-related issues at the company.

      Based on the facts reported by the administrator in his report dated June 22, Irdai came to the conclusion that continuation of SILIC to transact life insurance business is not in the interest of the holders of life insurance policies in general, and considered it to be a fit case to transfer the life insurance portfolio of SILIC to some other insurer under section 52B (1) of the Insurance Act, 1938, the order said.

      A moratorium period of 15 days is allowed to policyholders to pay renewal premium, and IPRU is given 21 days for settlement of claims after which the servicing of policy holders of SILIC shall be carried on by IPRU unhindered.

      IPRU will make available FAQs about servicing of policy holders of SILIC. A dedicated call centre/e-mail ID will be created to handle the concerns of policyholders of SILIC.

      According to Irdai, the report of the administrator indicated that there is total failure of the governance system of SILIC and the interests of the policyholders are at stake.

      Promoters of the company are no more 'fit and proper', a sum of Rs. 78 crore has already been syphoned off in name of security deposits, and the shareholders and board of directors are not keen in recovery plan, the report said.

      Moreover, the Irdai report said, the company is mainly surviving on release of reserves. The situation may not continue for long as the new premium of the company has come down significantly.

      IPRU shall assume the insurance liabilities of SILIC as per the valuation of the independent actuary as on the appointed date, the order said, adding SILIC shall transfer the assets/investments to IPRU on irreversible basis.

      Insurance behemoth LIC was among the few life insurance companies Irdai had approached to take over the assets and liabilities of policyholders of SILIC. However, LIC and all other insurers didn't show any interest except for ICICI Prudential Life Insurance.

      Replying to a PTI query, LIC chairman V K Sharma said that "SILIC is a stock-based insurer and we are not interested in taking over such firms".

      ICICI Prudential Life today said in a statement that it has received an order from Irdai directing it to take over the assets and policyholder liabilities of Sahara Life Insurance.

      The company clarified that this is not a merger between the two companies but purely a transfer of customers to ICICI Prudential Life.

      "We are pleased to welcome the new customers to the ICICI Prudential Life family. We would like to assure them of high levels of service and commitment," it said.

    SIS IPO Opens On July 31; To Raise Upto Rs. 780 Crore
    • Security and Intelligence Services (India) Ltd (SIS) on Friday said it will launch an IPO on Monday and expects to raise up to Rs. 780 crore, a part of which will go towards debt repayment.

      SIS has set Rs. 805-815 per share as the price band for the initial public offer (IPO) that closes on August 2.

      The IPO comprises a fresh issue of equity shares valuing up to Rs. 362.25 crore and an offer for sale of up to 5,120,619 equity shares to be diluted by investors and promoters, the company said at a press conference here today. 
      In a break-up for the offer for sale, SIS Group CEO Uday Singh said investors -- Theano Private Ltd and AAJV Investment Trust -- are completely exiting by selling their entire stake-holding of 3,402,764 equity shares and 68,336 shares respectively.

      In the promoter selling shareholders, Chairman Ravindra Kishore Sinha will dilute up to 786,517 shares in the IPO; Rituraj Kishore Sinha 524,345 shares. Other selling the stake have put on the block up to 338,657 equity shares.

      Bids can be made for a minimum of 18 equity shares and in multiples thereafter, SIS said.

      "The Indian security market is worth Rs. 40,000 crore which is largely fragmented with not more than 15 big players. There is enough headroom for us to grow in a faster pace," Singh said.

      Of the over Rs. 362 crore of the primary proceeds from the IPO, the company will use about Rs.200 crore for high cost equipment financing and to retire high cost debt that will help improve company's profit after tax (PAT) and earnings per share (EPS), said Rituraj Kishore Sinha, the Group Managing Director of SIS.

      Rest of Rs. 160 crore from the primary proceeds will be used for growth and general corporate purpose, he added.

      Axis Capital, ICICI Securities, IIFL Holdings, Kotak Mahindra Capital Company are global coordinators and book running lead managers to the issue. SBI Capital Markets, IDBI Capital Markets and Securities and Yes Securities (India) are merchant bankers to the issue.

      SIS said it ranks second in terms of security services solutions in India and has a number one spot in Australia.

      It also offers cash logistics and facility management services.

      Security services include security design and solutions, fire safety, event security, VIP protection, aviation security, emergency response, investigation work and integrated technology solutions providing man-tech solutions.

      Cash logistics pertains to cash in-transit, doorstep banking, ATM-related services, bullion and cash vaulting services.

      Facility management offers housekeeping services, janitorial support; heating, ventilation and air conditioning (HVAC) repairs and pest control.

    SEBI Calls On Exchanges, Clearing Corps To Better Deal With Tech Glitches
    • Market regulator Securities and Exchange Board of India (SEBI) admonished stock exchanges, clearing corporations and depositories on Friday to have procedures in place to deal with technological disruptions or cyber attacks, and to quickly share any information when such instances occur.

      In a statement, SEBI added it would also undertake "a comprehensive review" of the technology and systems deployed at these institutions.

      The statement comes after SEBI convened a meeting of relevant parties on Friday following a technology glitch at the National Stock Exchange (NSE) earlier this month that led to a near five-hour long trading disruption. SEBI added NSE had assured the regulator at the meeting that the exchange was strengthening its internal processes "to further reduce the response time for recovery and also adoption of automated processes."

    General Awareness

    Muntra – country’s first unmanned tank, rolls out from the Chennai lab

    • Defence Research and Development Organisation (DRDO) has developed an unmanned, remotely operated tank named ‘Muntra’ which has three variants – surveillance, mine detection and reconnaissance in areas with nuclear and bio threats. 
      More Information pertaining to Muntra:
      Muntra has been developed and tested for the Army by Combat Vehicles Research and Development Establishment (CVRDE) in Avadi, Chennai.
      • Indian paramilitary force has also expressed interest to use these unmanned tanks in Naxal-hit areas. However it will require a few modifications.
      • Variants: Muntra-S is India’s first tracked unmanned ground vehicle developed for unmanned surveillance missions while Muntra-M is for detecting mines and Muntra-N is for operation in areas where there is a nuclear radiation or bio weapon risk.
      • Specifications: The vehicle has surveillance radar, an integrated camera along with laser range finder which can be used to spy on ground target 15km away – may be a crawling men or heavy vehicles.
      • The vehicle has been tested and validated at Mahajan field firing range in Rajasthan under dusty desert condition.
      • The two remotely operated vehicles designed like an armoured tank were on display at an exhibition – ‘Science for Soldiers’ – organised by DRDO as a tribute to former President APJ Abdul Kalam at CVRDe in Avadi. 
      Quick Facts about Defence Research and Development Organisation (DRDO):
      DRDO is Government of India’s agency responsible for military‘s research and development.
      • It was formed in 1958 by the merger of the Technical Development Establishment and the Directorate of Technical Development and Production with the Defence Science Organisation.
      • Headquarters of DRDO is located in New Delhi.
      • It is under the administrative control of the Ministry of Defence, Government of India.
      • S Christopher is the current Chairman of DRDO.

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