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Jaitley says AAP caught red-handed receiving funds from dubious companies

Jaitley said AAP has to answer who were behind the companies that donated Rs2 crore the Kejriwal-led party and what was their source of income 

 

Union Finance Minister Arun Jaitley on Tuesday said Arvind Kejriwal-led Aam Admi Party (AAP) was caught red-handed in receiving funds through round tripping from companies, which did not have any business. He also accused AAP of adopting diversionary tactics to deflect attention.
 
Jaitley called the Rs2 crore donation through cheques of Rs50 lakh each by four companies to AAP a clear case of “round-tripping of black money” and indicated that a probe will be initiated into it by the concerned authorities.
 
AAP Volunteer Action Manch (AVAM), a breakaway group of the Aam Aadmi Party, Monday had accused the Arvind Kejriwal-led party of receiving Rs2 crore last year through four “dubious” companies.
 
AAP has rejected the charges and demanded a Supreme Court-monitored Special Investigation Team (SIT) to probe funding of all three major parties in Delhi polls.
 
“It is obvious that this is a round-tripping of black money into the system of a political party. Now, if you are perhaps trapped in an incident of this kind, this is no position that you should start blaming other political parties and try and deflect the agenda,” Jaitley said.
 
On AAP seeking a Supreme Court-monitored probe into funding of the three major parties in Delhi polls, the Finance Minister said, “These are all diversionary tactics. AAP and its leadership has been caught red-handed in this case.
 
“I’m sure the statutory authorities will do their job as and when their returns are filed and as and when the facts are brought to their notice.”
 
Asserting that it adopted “total transparency” in its funding, AAP accused BJP of attempting to influence the voters ahead of the 7th February polls by bringing out “false” allegations.
 
Rejecting AAP’s argument that it received the donations through cheques, Jaitley said, “The elementary question is when you give your money by cheque, who is the controlling interest behind that company, the party is supposed to know that.”
 
He further said it was “obvious that these companies have been used as pass-through entities, transacted through hawala means or through companies which convert that money and give entries in white money to others.”
 
Jaitley said AAP has to answer who were behind these companies and what was their source of income.

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COMMENTS

Kiran Aggarwal

2 years ago

http://www.abplive.in/india/2015/02/03/a...#.VNECWjGUePY

AAP 'S REBUTTAL
TO COMPLETE THIS NEWS ITEM

Why Coal India is not investing in Railways?

The Railways is in dire need of funding, while Coal India is unable to supply adequate coal as there are not enough rakes. Why not allow Coal India to invest in Railway to ensure that it gets all rakes required to transport coal to its customers and power producers 

 

For the first six months of this fiscal, Coal India Ltd (CIL)'s production, according to the media, has shown a 6% growth to reach 389 million tonnes (mt). This is likely to be around 490 mt by end of March, compared to 462 mt achieved in 2013-14.  That is the good news! But the bad news is because of the non-availability of rakes, most of this increased coal output will remain, unmoved, at the pit heads!
 
Press reports indicate that, as against the daily load average of 207 rakes, Railways have been able to make available only 197 rakes, in the first fortnight of January, leaving a shortfall of 10 rakes. The current stock pile at the pit heads is said to be 42 million tonnes and, if the poor and erratic supply of rakes should continue, this may eventually exceed 50 mt at various points, by end of March.  It appears that rakes have been diverted to carry imported coal cargo from ports to various destinations of its buyers.
 
It may be recalled that Suresh Prabhu, Railway Minister, while addressing the Airtel and the Economic Times Business Summit, stated that the finances of Railways were in "deep trouble".  He wanted huge investments in Railways to make the "engine of growth". 
 
In the ensuing Railway Budget, the Railway Minister can consider the following suggestions for incorporation in the Budget:
 
a) Inviting the main consumers of Coal to invest in Rakes (for example, if NTPC as a large buyer of coal can finance the purchase of rakes that would exclusively be used for THEIR coal movement, in addition to what Railways normally supply)
 
b) direct consumers can also finance the cost of rakes and make them available to Railways, on an agreed "rental" basis for coal movement
 
c) direct consumers can help Railways in completely financing the 'dedicated corridors' for coal movement 
 
d) Railways will additionally allocate a 'Coal Express' for exclusive coal movement, which will be  assigned for exclusive use of rail tracks at night, without disturbing other movements
 
e) since domestic coal shortage is likely to continue for a few years, and imports are imperative, Railways can offer coal importers to 'own' rakes in the above manner so as to increase the movement capacity of Railways for evacuation.
 
Railway minister, Suresh Prabhu can make suitable provisions in the ensuing Budget.
 
This is so that large cargo movements are possible, which are so essential to make sure
that 'make in India' is a success.
 
He also made a pointed reference to sourcing of finance from Pension Funds, which countries like Australia and Canada have done.  Their Pension Funds, runs into trillions of dollars and this has been utilised to help develop their economies. He felt, therefore, there ought to be little or no hesitation for India to consider this route as well.
 
Talking of accessing finance from Pension Fund is one thing but the actual availability of this fund for investment could be a wholly different and difficult issue, as far as India is concerned.
 
According to the press reports, there are about 8.3 crore inactive and 3.49 crore active subscribers and the total value of the Corpus has increased from Rs162,000 crore (in March 2012) to Rs208,000 crore (in March 2014) and the present value of contribution has also increased from Rs149,000 crore to Rs1,71,000 crore in the same period. The net liability as at March 2014 is said to be Rs7,833 crore.
 
It appears a review of the investment norms has been on the card for years but the Labour Ministry and the Trade Unions are said to be not in favour of a change and, have, in fact, sought more benefit under the Employee Pension Scheme.
 
So, if Railways need to access the funds under the EPS, they should be able to attract them by offering a good return on investment. Would the Railway Minister make some provision to this effect in the ensuing Railway budget?
 
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US)
 

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COMMENTS

Vinod Sao

2 years ago

CIL needs a base to blame for, if the problem solved then who do they blame?

Pl recall, CIL went to Mozambique and took two coal blocks to eyewash their overseas coal acquisition drive, for your kind information these coal blocks were rescind earlier by ASX company after initial exploration which CIL has begged on G2G basis from Govt of Moz.

rajivahuja

2 years ago

I whole heartedly agree with your above mentioned proposals.

K. M. Rao

2 years ago

Let the Indian Govt permit Railways to pay tax free interest at 7% to 8% and collect money from the public through bonds exclusively for buying rakes, it will be flooded with funds from the public. This is the only way even to fund infrastructure projects not by this failed PPP model.

vishal

2 years ago

It is a good thing the production of coal by CIL is plus. This is a good sign, so that higher productivity can be expected in the coming years. As for rakes the trump card is with Railways and not CIL. The private players have their own reason not to hire rakes and move coal, it is not their problem. Similarly, CIL is not short of funds like railways why should they bother about movement of coal?

Narendra Doshi

2 years ago

well said Ramdasji. Implement Shri Prabhuji soon.

RBI doubles forex remittance limit to $250,000

The liberalised remittance scheme would allow residents to acquire and hold shares, debt instruments or other assets worth $250,000 outside India without prior approval of the RBI

 

Encouraged by foreign exchange reserves touching record levels, the Reserve Bank of India (RBI) on Tuesday doubled the annual overseas investment ceiling for individuals to $250,000. RBI said on a review of the external sector outlook and as a further exercise in macro-prudential management, it has been decided to enhance the limit under the Liberalised Remittance Scheme (LRS) to $250,000 per person per year from $125,000.
 
In view of the worsening current account deficit and a volatile rupee, the RBI had in August 2013 reduced the ceiling from $200,000 to $75,000 per person in a year under the LRS. Consequently, with improvement in forex situation, it was raised to $125,000 in June 2014.
 
The LRS allows residents to acquire and hold shares, debt instruments or other assets outside India without prior approval of the RBI.
 
Furthermore, in order to ensure ease of transactions, the RBI said all the facilities for release of exchange/ remittances for current account transactions available to resident individuals under Schedule III to Foreign Exchange Management (Current Account Transactions) Rules 2000, as amended from time to time, shall also be subsumed under this limit.
 
In mid-January, India's foreign exchange reserves touched a new life time high at $322.135 billion, driven by higher foreign fund inflows and lower forex outgo on the back of a massive fall in global crude prices.
 
Foreign funds had been pumping more and more dollars into Indian equities ever since the new government assumed charge in May.
 
In 2014, FIIs pumped in $16.15 billion into Indian equities while they have exhausted the cap of $30 billion in Government securities. They have parked $32.5 billion in corporate bonds, which is 64% of their cap of $51 billion.
 
Foreign direct investments (FDI) in the country rose by 22% to $18.88 billion during the eight months of the current fiscal. The amount was $15.45 billion in the April-November period of 2013-14.
 
India's current account deficit narrowed to 1.9% of GDP in the first half of current fiscal from 3.1% of GDP in in the corresponding period of 2013-14.
 
This enhancement in limit comes after a review of the external sector outlook and as a further exercise in macro prudential management, the central bank said.
 
RBI had reduced the eligibility limit for foreign exchange remittances under the LRS to $75,000 in 2013 as a macro-prudential measure. With stability in the foreign exchange market, this limit was enhanced to $125,000 in June 2014 without end-use restrictions, except for prohibited foreign exchange transactions such as margin trading, lotteries and the like.
 

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