RBI: Frying pan to fire
A tea seller can become the Prime Minister of the country. That would be the victory of democracy. At the same time, if a PM can choose a television serial actor to head the most significant portfolio of HRD ministry and be given the responsibility of looking after all universities; or appoint a person with graduation in history to be the governor of RBI, it would be a loss of the power democracy gives us.
A PM need not be highly educated but he has the choice of having experts and knowledgeable people around him. But what would happen if the PM was to have businessmen around him who would influence his every decision? The answer is right before us.
Shaktikanta Das has been chosen to be the governor of RBI. In the past, this chair was occupied by some of the best brains with expertise in economics at global level. This chair would now belong to a person with post-graduation in history and an added course in financial management. This has thrown the RBI from frying pan to fire.
RBI was going through tense moments when Raghuram Rajan was replaced by Urjit Patel. In the next few months of Patel assuming the post, government thrust demonetization on the nation. This decision had nothing to do with the RBI. This was the main reason for the failure of demonetization which was done to protect the interest of only few people.
Some corporate companies, political organisations and businessmen were the clear beneficiaries of this note ban. Common people suffered endlessly. Economy fell flat. Modi government used Urjit Patel who would be dancing according to the tune of the government.
Except for accounting for the old currency notes, Urjit Patel didn’t take any great decisions as the Governor of RBI. He had no plans to even help the country lift itself from the quagmire of economic distress that was progressing fast. He could not even explain the impact and long term results of note ban to the people of the nation. He woke up only when the government couldn’t recover the stashed black money, and note ban had a mammoth impact on the country’s progress.
Patel woke up only when the government was attempting to make RBI responsible for the failure of note ban. Though he was a puppet at the hands of Modi, Patel knew about the ill effects of note ban since he is an economic expert himself. He knew the country was headed to an economic distress. He couldn’t tolerate the fact the government would use him to commit more blunders and he was forced to speak out.
He began to speak to the media about the external influences working within the RBI and their impact. Patel was already close to tendering his resignation and he probably assumed it was better if he quit without having to commit more blunders to put RBI and nation into trouble.
This must have been an honest economist in him speaking up. RBI strongly protested against relaxing the norms of lending. If this was done, the banks could extend another four crore loan to the big corporate giants who also happen to be friends of Modi. Not only that, with the new circular that was issued out Feb 12, 2018 it was possible for the corporate companies who had already taken the loans to escape the bankruptcy noose.
With this, the Adani Group, Essaar and TATA could get an extended life for their electric projects. But since Patel saw how this could negatively impact the future of India, he did not want to risk this decision. Hence the puppet cut loose the string which was dictating his movements.
We can now easily imagine the forces that did not want former RBI governor Raghuram Rajan for the second term. His fate was sealed when he sent a list of NPA and businessmen who had used loans deviating from the purposes that they had raised them for.
With a plan to turn RBI into private treasury, Rajan was sent out and Patel was brought in. BJP was recognized as the richest party in the world post demonetization. Corporate companies got fatter. Now the government is all set to implement Section 7 to extend more privileges to corporate companies and make them even fatter and privileged at the cost risking the national economy time and again.
At a time like this, Patel has found an escape route. His resignation does not absolve him of all the wrongs he was party to. He needs to apologise to the nation for being part of demonetization.
Appointment of the new governor may well complicate the matters by that much. Shaktikanta Das supported note ban totally and he is also totally subservient to the Modi clan. He is not a financial expert at all. The way education sector was compromised with, having handed over the portfolio of human resource to Smriti Irani who allowed massive interference of RSS, Corporate powers are now planning to do the same with RBI by bringing in a man with history for his qualification so that they can mess it up totally. We can only hope this does not severely compromise the future of the country.
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Another North Goa nightclub sealed; Kejriwal says corruption led to fire tragedy
Panaji (PTI): As part of a crackdown against tourist establishments violating laws and safety norms in the aftermath of the Arpora fire tragedy, Goa authorities on Saturday sealed a renowned club at Vagator and revoked the fire department NOC of another club.
Cafe CO2 Goa, located on a cliff overlooking the Arabian Sea at Vagator beach in North Goa, was sealed. The move came two days after Goya Club, also in Vagator, was shut down for alleged violations of rules.
Elsewhere, campaigning for local body polls, AAP leader Arvind Kejriwal said the fire incident at Birch by Romeo Lane nightclub at Arpora, which claimed 25 lives on December 6, happened because the BJP government in the state was corrupt.
An inspection of Cafe CO2 Goa by a state government-appointed team revealed that the establishment, with a seating capacity of 250, did not possess a no-objection certificate (NOC) of the Fire and Emergency Services Department. The club, which sits atop Ozrant Cliff, also did not have structural stability, the team found.
The Fire and Emergency Services on Saturday also revoked the NOC issued to Diaz Pool Club and Bar at Anjuna as the fire extinguishers installed in the establishment were found to be inadequate, said divisional fire officer Shripad Gawas.
A notice was issued to Nitin Wadhwa, the partner of the club, he said in the order.
Campaigning at Chimbel village near Panaji in support of his party's Zilla Panchayat election candidate, Aam Aadmi Party leader Kejriwal said the nightclub fire at Arpora happened because of the "corruption of the Pramod Sawant-led state government."
"Why this fire incident happened? I read in the newspapers that the nightclub had no occupancy certificate, no building licence, no excise licence, no construction licence or trade licence. The entire club was illegal but still it was going on," he said.
"How could it go on? Couldn't Pramod Sawant or anyone else see it? I was told that hafta (bribe) was being paid," the former Delhi chief minister said.
A person can not work without bribing officials in the coastal state, Kejriwal said, alleging that officers, MLAs and even ministers are accepting bribes.
