Government gambling with RBI
The interference of the government in RBI had come to discussion when a massive decision such as demonetisation was taken unilaterally without including the latter in the process. Experts had perceived problems when Urjit Patel was brought in as a replacement to Raghuram Rajan, as the head of RBI. Corporate powers began to interfere with RBI after Modi became the Prime Minister. Now the tussle between RBI and Central government has reached its peak. Rumours are strife that Urjit Patel may resign from his post any moment. At a time when India's economy situation is not very bright, a problem like this can affect the country's future a large extent. Corporate powers that are close to Modi are being blamed for this situation country is facing right now.
RBI has laid down certain restrictions to weak banks in the recent times regarding disbursal of loans and the government is not too happy with this. The centre is forcing the RBI to remove those restrictions and disburse loan more freely. the government wants compulsive defaulters who are also its friends to get more loans despite having raised a lot of loans and not repaid them. This will help them escape the bankruptcy declaration process as per the circular issued by the RBI on Feb 12, 2018. The friends of powers that be, owe banks more than Rs 4 lakh crore. Companies such as Adani Group, Essar. TATA and others will get a fresh lease of life for their power projects despite owing the banks more than Rs one lakh crore collectively.
According to economists, these projects would have massive impact on our collective future. The govt is ready to invoke section 7 of RBI policy that has never been used earlier to make this happen. This is a blatant attempt to secure more loans despite being wilful defaulters and yet refuse to take responsibility for their actions. This move is to ensure that these companies turn into big donors for the upcoming elections to BJP. On the surface it is very clear that the BJP can compromise on country's economy for the sake of winning elections and staying in power. Modi government has to answer as to why only a certain selected corporate players are being treated more specially than the others ignoring the circular issued by the RBI in February.
Is the government trying to stop the process of defaulters who owe the banks huge amounts of money, from entering the process of bankruptcy declaration as per the RBI's decision. Law applies differently to friends of the powers that be, and the does. Some vested interests ensured Raghuram Rajan wouldn't be appointed as the RBI governor for the second term so that they could have a free run on policies regarding loans and related issues. Their main grouse against Rajan was that he had sent a list of politically strong defaulters having used the loans they had raised for purposes other than whatever they had mentioned they were raising it for. Rajan had sought that action be initiated against them. Despite many reminders, the government had refused to act. This fact is out in the open through an RTI application that sought to know what had the government done to contain the damage. A webportal has reported regarding this issue.
RBI will be deemed weak should the government invoke section 7 against the institution. All the measures initiated by the RBI to bring defaulters to book would be questioned by people. In view of all this, if Urjit Patel resigns, India would turn into a laughing stock before the global investors. Our economic system would turn upside down with this. The government is aware of this. Hence issues of Ram Mandir and Shivaji statue are being brought up for discussion now distract people from core focus. This may win elections for BJP but the country will plunge into darkness on the economic front. The government has clearly set out to gamble with RBI at the cost of country's future, to win elections and stay in power.
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Speaker rules out discussion on Guv''s conduct amid K''taka Assembly standoff
Bengaluru (PTI): In an effort to end the logjam over the Governor's address that has stalled proceedings for the past week, Karnataka Assembly Speaker U T Khader on Wednesday ruled that legislators should not discuss Thaawarchand Gehlot or his conduct in the house, saying such debates send the wrong message to the public.
The House has witnessed repeated disruptions and adjournments since the session began on January 22 over the issue of the governor's conduct.
During his address to the joint sitting of the Karnataka legislature on January 22, Gehlot read out only three sentences from the 122-paragraph speech prepared by the state government.
The speech included criticism of the Centre for replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat–Guarantee for Rozgar and Ajivika Mission (Gramin) (VB-G RAM G), portions of which the governor declined to read.
Concluding his address in about two minutes, the governor left the house, triggering a commotion as Congress legislators attempted to gherao him and raised slogans.
While the opposition BJP accused the ruling Congress and its ministers of "insulting" the governor and demanded action, the treasury benches countered by claiming the governor had "insulted the National Anthem by leaving before it was played."
The house again witnessed heated arguments on the issue earlier in the day, leading to adjournment.
During the interruption, Khader held a meeting with ministers and opposition members to resolve the impasse.
When proceedings resumed, the speaker delivered his ruling.
Referring to the events of January 22 and the subsequent debate, Khader said the conduct and discussions had conveyed the wrong message to the public.
"Our conduct as members of this House and the opinions expressed must be in good taste and in accordance with constitutional provisions. They must uphold the dignity of the House and its members. We must introspect in this direction," he said.
He stressed the need for caution to ensure that such incidents are not repeated in the future.
"Let us end this matter here, continue the discussion on the motion of thanks to the governor, and refrain from discussing the governor or his conduct in this house," the speaker said.
Leader of the Opposition R Ashoka said the house should express regret over what he termed an "insult" to the governor.
Responding, Chief Minister Siddaramaiah said the situation would not have arisen had the governor read out the entire address.
"Asking the house to express regret is not appropriate. Why did the governor leave even before the National Anthem was played," Siddaramaiah asked.
BJP MLA S Suresh Kumar reminded Siddaramaiah that as Leader of the Opposition in 2011, he had asked then Governor Hansraj Bhardwaj to curtail his address.
Bhardwaj had subsequently placed the address on the table of the house, requesting members to treat it as read.
Siddaramaiah said the situation in January 2011 was different from the present one.
The debate grew intense, leading to another adjournment of the house.
