Citizens' Issues
Agitators damaging public property must pay: SC
New Delhi : The Supreme Court on Wednesday said it would lay down guidelines to act against people damaging public property and holding people to ransom in the course of their agitation as it wondered where was the country heading.
 
Agitators can't destroy public property and hold everything to ransom to get their demands met, said the apex court bench comprising Justice Jagdish Singh Khehar and Justice C. Nagappan underlining that those involved in destruction of public property would not escape the consequences of their actions.
 
"What is happening? Where is our country (headed for). One cannot burn the country's property. You can agitate peacefully. But what is this? - burning and ransacking", the court said with an obvious reference to the recent Jat agitation in Haryana which resulted in damage and destruction of public property, dislocation of public transport including disruption of water supply to the national capital.
 
The court's strong observation came in the course of the hearing of a plea filed by Gujarat Patidar Anamat Andolan Samiti (PAAS) leader Hardik Patel, seeking the quashing of sedition charges invoked against him by the Gujarat Police. 
 
Saying that people and political parties must pay for damaging public property, the bench said, "We must take call on the issue and frame guidelines."
 
The court said it would address the larger issue after Attorney General Mukul Rohatgi told the court that petitioner Hardik Patel had sought the quashing of the FIR accusing him of sedition.
 
He said now the chargesheet has been filed before the trial court and the same could not be tested by the top court.
 
The court was also told Hardik Patel's plea for bail was still pending before the sessions court and it (apex court) should hold back the plea for bail till it was decided. 
 
As the counsel for the Patidar leader sought adjournment of the hearing, saying that senior counsel Kapil Sibal was engaged in another court, the court said it would hear the matter on Thursday (February 25) indicating that the focus would be on the larger issue of ways to deal with agitators involved in destruction and damage of public property during an agitation. 
 
Gujarat Police has accused Hardik Patel of sedition for an incident in Surat wherein the Patidar leader was caught on camera telling one of his followers that instead of committing suicide he should take revenge on the policemen.
 
Sibal had said, in the last hearing, that even if whatever Gujarat Police was saying was to be accepted, even then it did not attract the sedition charge.
 
Hardik Patel is leading the Patidar agitation, seeking reservation for Patels in education and jobs.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

Anand Vaidya

12 months ago

It is high time that destruction of nation's public & private property, killing of people / death of security forced be considered intentional crime and whoever instigates or leads such protests be punished with penalties AND mandatory jail term.

It may even be a good idea to ban mass protests for 5years. Peace is the first necessity for development. The HR agitation already seems to have caused 20,000 crore loss. Who will pay for this?

REPLY

Meenal Mamdani

In Reply to Anand Vaidya 12 months ago

I sympathize with your anger and agree that we must hold the political leaders who instigate violent protests accountable for the actions of their followers. Fines in proportion to the damages caused should be assessed on the leaders personally and/or their parties. If there has been loss of life, then the leaders should have criminal cases lodged against them.

BUT, we cannot ban protests in a democracy. This is our fundamental right to freedom of expression and as long as it is peaceful, it should not be banned.

MG Warrier

12 months ago

Responsible citizens like Kapil Sibal, who is defending the accused, should also take observations like “"What is happening? Where is our country (headed for). One cannot burn the country's property. You can agitate peacefully. But what is this? - burning and ransacking", from the Apex Court seriously, and back in the legislature, initiate debate on such issues for creating awareness and formulating ‘code of conduct’ for those leading agitations. The judiciary should not be burdened with the responsibility of providing guidelines for protecting public property during agitations.

Meenal Mamdani

12 months ago

Supreme Court did the right thing by putting organizations and political parties on notice that if the leaders use language that incites their members/followers to violence, then the org./party would have to pay monetary damages and perhaps even jail terms in case the carnage is horrendous.

While I fully support the above position, I wonder how easy it will be to prove that the lumpen committing the criminal acts are actually followers/members of a particular organization/political party and following the leader's call to action.

Also looking at the ease with which a TV channel slanted a video to its point of view recently, will we get unbiased tapes to prove that the leaders were actually inciting their followers to commit acts of violence?

Nonetheless, I heartily support such a case being filed and monetary damages awarded so there would be a chill and the impunity enjoyed by the political operatives would be shredded.

Ricoh India: Delay in filing quarterly results raises concerns
Ricoh India has still not submitted its quarterly reports for the September and December quarters. Even its board meetings have been postponed thrice in November 2015 raising concerns among investors
 
Updated on 26 February 2016 at 2.30pm to include the company statement
 
Imaging solutions and IT services company Ricoh India, has not filed its quarterly results for the quarter ended 30 September 2015 and 31 December 2015. In a regulatory filing on 18 February 2016, the company said that it is about to finalise its accounts and will file it in a short time. Further, the reason for the delay in filing was cited as the change in statutory auditors last year, which led to the new auditors taking longer than usual to furnish the signed reports to the Audit Committee. 
 
The company’s Board meetings have also been repeatedly postponed from 5th November to 10th November, and later to 14th November 2015. On 14th November, the Audit Committee and Board of Directors Meetings was adjourned citing limited review for the quarter ended September 2015 took longer time since it was the first audit from the newly appointed auditors. Ricoh India’s regulatory filing on 7 December 2015 says that the company has considered and taken note of the recommendations of its statutory auditors. However, there is no mention of key recommendations from the statutory auditors. 
 
On 10 July 2015, the Company’s Board appointed BSR & Co as its new statutory auditors for five years in place of retiring auditors Sahni Natarajan and Bahl. 
 
In an email, the company said, "Ricoh has a very strong ethical and fundamental management and the company is on a high growth trajectory and has the requisite financial and the technical capabilities to proactively respond to the ever changing business demands of a rapidly evolving technology market in India. We are in the process of completion of unaudited financial results for Q2 and Q3 as well. Due to an unforeseen and unprecedented situation the company has not been able to submit its Q2 financial results with the stock exchange. Our new auditors are already working on the same and the company is also making all best endeavours to get this activity completed as soon as possible. Ricoh has been growing at a rapid rate of over 50% CAGR for last four years, in a row and are confident to sustain this growth. Further the recent strategic announcements is a testimony to the company's overall growth."
 
Last month, India Ratings and Research Pvt Ltd upgraded Ricoh India’s Rs200 crore long term non-convertible debenture (NCD) to Ind-AA from Ind-A. The ratings agency, a unit of Fitch, also upgraded long term issuer rating of the company to Ind-AA from Ind-A with a stable outlook.
 
The company recently secured an order worth Rs344 crore from Kerala State Electronics Development Corp Ltd (KELTRON) for supply, installation and commissioning of computer hardware, connected accessories, software, maintenance of equipment and provision of computer education services in 2000 government and government aided high schools in the state of Odisha. However, it needs to fix its governance issues first, according worried investors. There is no record of the stock exchanges having posed any questions to the company.
 
Ricoh India closed Wednesday 3.9% down at Rs538.25 on the BSE, while the 30-share benchmark ended the day 1.4% down at 23,088.
 

User

Public-sector banks: No place to hide amid increasing stress
Sharp fall in interest rates or provision of transfer of stress loans to new entity or aggressive recoveries from write-off accounts remains the only hope as of now, says a research report
 
Public sector banks (PSBs) reported one of their worst quarters in the last decade, with no near-term visibility in operational improvement. For the first time, PSBs are likely to report negative core margins for FY2016. Taking cues from near-term weak economic outlook, their valuations have corrected sharply. Aggressive write-offs helped by sharp fall in interest rates and provision of transfer of stress loans to new entity or fund or aggressive recoveries from write-off accounts remains the only hope for PSBs as of now, says a report from Motilal Oswal Securities Ltd.
 
"Significant pile-up of stress loans on the balance sheet would keep credit cost elevated (for PSBs), with limited support from core pre-provision operating profit (PPoP) or higher non-interest bearing loans on balance sheet now. The Reserve Bank of India (RBI) is also likely to come out with the guideline for increasing provisions on 5:25 and special drawing rights (SDR) accounts, which would further intensify pressure on credit cost," it said.
 
 
Motilal Oswal Securities said its calculations suggest that the RBI’s asset quality review (AQR) covered, including all three lists, is about 3.5% of the system stressed loans. Contribution from restructured loans was significantly higher at around 2.2% (0.9% relapse and 1.3% loans requiring enhanced provisioning). New stress addition at the system level from non-stress recognized standard loans was lower at 1.3% of loans. RBI AQR contributed about 50% of the slippages for the quarter. Aggressive stress recognition outside the RBI AQR surprised us. Banks have utilised the opportunity to clean up aggressively and this is likely to continue in fourth quarter of FY16 as well, it added.
 
With RBI focussing on balance sheet health, the credit cost is likely to remain elevated, the report said. Over 50% of the non-performing asset (NPA) recognition in the RBI AQR happened via relapse from restructured loan (RL), wherein the account status classification into NPA happened from date of restructuring. Hence, most loans in this category moved to over two years NPA classification (D1/D2), leading to higher NPA provisioning. 
 
 
"Total provisioning requirements on RBI AQR, including issue, rule, application, and conclusion (IRAC) norms for ageing of NPA portfolio, would be Rs40,000-45,000 crore with over 90% expected to be with PSBs, of which half would hit profit and loss (P&L) in FY16 and the rest in FY17. Significant pile-up of stress loans on the balance sheet would keep credit cost elevated. The RBI is also likely to come out with the guideline for increasing provisions on 5:25 and SDR accounts, which would further intensify pressure on credit cost," Motilal Oswal Securities said in the report.
 
Sharp rise in risk-weighted assets (RWA), significant downgrade of loans, profit before tax (PBT) losses or negligible profits and build-up of deferred tax asset (DTA) as banks used this to report PAT although DTA is deducted while calculating common equity Tier I (CET1) capital, led to sharp drop in capitalization in 3Q FY16. Most PSBs are at 7-8.5% now. With the guidance of half of the stress recognition related to RBI AQR to be taken in 4Q and dividend payout (expected in few cases though), stress on capitalization is expected to continue. 
 
Given the combination of a weak outlook for internal accruals for mid-sized PSBs, the report says need for fresh capital infusion assumes even greater significance. "In this context," it said, "the inability of such mid-sized PSBs to access capital markets, especially at such depressed valuations, implies that all of their Tier-1 capital requirements will need to be fulfilled by the government in the form of CET1."
 
 
"Inability of small PSBs and weak large PSBs to raise additional tier 1 (AT1) capital may aggravate the need for equity capital requirement. RBI relaxations for recognition of capital in the form of revaluation of assets and other strategic investments would, however, provide some relief. State Bank of India around 9.4% consolidated, Bank of Baroda, at around 9% and Indian Bank at over 11% are well placed on capitalisation in our coverage universe," the report concluded.

User

COMMENTS

Gopalakrishnan T V

12 months ago

The problems in PSBs are man made. The banks, their board of Directors, the regulators, the Government , the auditors and the accountants etc have their contributions to amass wealth by the borrowers at the cost of depositors, good borrowers and the tax payers. Now to take the banks out of the rut , again all are trying to tax the stake holders of the economy. The wrong doings continue unabated and the problem is not fixed in a logical manner.I would like to quote here what I have received from a Senior banker after reading about the staggering NPAs in PSBs and their helplessness to save from the situation.Ayn Rand wrote in "Atlas Shrugged" in 1957 'When you see that trading is done ,not by consent, but by compulsion- when you see that in order to produce, you need to obtain permission from men who produce nothing,- when you see that money is flowing to those who deal , not in goods but in favours,- when you see that men get richer by graft and pull than by work and your laws do not protect you against them, but protect them against you, - when you see corruption being rewarded and honesty becoming a self sacrifice- you may know that your society is doomed.' This is the situation now all are facing and the solution is not that easy to come by.

B. Yerram Raju

12 months ago


Yes; we need to support banks in this hour of their distress. But at whose cost is the question. There is no point in opening another outfit for transferring the bad loans and that too again in the public sector.
Second, PSBs have now come into the bad books of their customers who bear their errands with a grin on their forehead. Banks should seriously engage with their clients on a win-win platform. They have lost the culture of acknowledging the letters of their customers responsibly and addressing their grievances in good time.
Their embrace with technology is not faulted but the way the staff is cultured into understanding the risk management practices needs serious look and timely correction.
Rajan may be wrong on Dosanomics but not with pronouncing the rot in them.
He is right when he said this is not the right time for mergers and acquisitions. Let the balance sheets of banks be cleaned up first.
RBI cannot put in capital and be a party to regulatory arbitrage. GoI as owner and as a party to the perpetration of largest corporate default with impunity has to supplement the capital that is eroded. Nevertheless it cannot be without conditionalities: The GoI should have an MOU with such banks on the Board responsibilities and Board accountability for the road map of correction.

Dayananda Kamath k

12 months ago

The timing of RBI action to clean balance sheets instead of cleaning people responsible for it from banking appears to be his payback to his appointer

Suketu Shah

12 months ago

I have never understood why 30 oddnationalised banks were required.They compete against each other.There shd be at the max 6.

REPLY

MG Warrier

In Reply to Suketu Shah 12 months ago

Restructuring was recommended as early as in 1991 by Narasimham Committee. If action had been initiated then things would have been different for India's banking system in the 21st Century.

MG Warrier

12 months ago

We should be prepared for several such doom-sayers, now that there is a conscious effort from RBI and GOI to bring some method in the madness of working of the banks in India. There is no point in arguing now that the overhaul and professionalization of public sector banks (PSBs) should have happened along with bank nationalisation and there should have been regular ‘health checks’ and ongoing corrections. Just as a ‘health check up’ does not change the condition of a person, the re-classification of more loans as NPAs does not alter a bank’s ability to change. The need of the hour is to support banks to recover their dues from borrowers who have the capacity to repay, infuse professionalism in the banks’ working and restore the faith in the banking system. As private sector banks have failed to perform their responsibilities and are not too willing to grow (their share in banking business is less than 30 per cent), privatising the existing public sector banks is no solution. Perhaps, GOI should consider nationalising entire banking business and restructuring the banks to serve public interest.

REPLY

Sudheer M

In Reply to MG Warrier 12 months ago

Nationalisation of all banks is not a solution. Inculcating professionalism and strict checks by RBI is the only way out. Root causes of NPA should be published and persons accountable for this should be punished.

Sudheer M

In Reply to MG Warrier 12 months ago

Nationalisation of all banks is not a solution. Inculcating professionalism and strict checks by RBI is the only way out. Root causes of NPA should be published and persons accountable for this should be punished.

Prakash Bhate

In Reply to MG Warrier 12 months ago

Nationalising the entire banking business would be a disaster. If nationalisation was a panacea for all the nation's ills we would have been in Ramrajya by now. "Supporting banks to recover their dues from borrowers who have the capacity to repay" is certainly doable, but then who will bell the cat?

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)