President’s rule imposed in Andhra Pradesh after 41 years

President Pranab Mukherjee signed the proclamation to impose Central rule in Andhra Pradesh and also gave his assent to the Telangana Bill

 

The Bill to carve out Telangana from Andhra Pradesh (AP) on Saturday received the assent of President Pranab Mukherjee who also signed the proclamation to impose Central rule in the state. This is the second time in 41 years that political issues surrounding bifurcation have led to the clamping of President’s rule in the State.

 

The Andhra Pradesh Reorganisation Bill 2014, which got Parliament’s approval on 20th February despite strong opposition from Seemandhra leaders, got the Presidential assent, paving the way for creation of the country’s 29th State by splitting Andhra Pradesh.

 

There will be 13 districts in residuary Andhra Pradesh, while Telangana will have 10 districts, including Hyderabad city.

 

In a bid to address concerns of the Seemandhra region, the union government had already announced grant of special category status, including tax incentives, to the residuary state as part of a six-point development package for AP’s two successor States.

 

The President also signed the proclamation to impose President’s rule in Andhra Pradesh following the Union Cabinet’s recommendation.

 

Mukherjee gave his nod to place under suspended animation the Andhra Pradesh Assembly whose term is slated to end on 2 June.

 

The decision to impose President’s Rule in Andhra Pradesh was necessitated by N Kiran Kumar Reddy’s resignation as the chief minister on 19th February as he was opposed to division of the state to carve out Telangana.

 

Andhra Pradesh governor ESL Narasimhan had recommended Central rule in the state after Reddy's resignation.

 

Earlier in 1973, following the Jai Andhra movement (separate State for Andhra region), the Indira Gandhi Government imposed President’s rule for 11 months. PV Narasimha Rao, the then chief minister, had resigned.

  • User

    COMMENTS

    Goutami

    6 years ago

    Are there no political leaders (that are opting for Thorne), parties, actors and other candidates (opting to get seats as MLAs or MPs), and resigned politicians(jumping parties), challenging the bifurcation. It isn't difficult there are over 80% people behind you. Common people know that political leaders are all scoundrals and so take help from Lawyers form all regions and fight to keep the TELUGUs together to the end. OUR telugu leaders from pats have fought for our unity and surely did not want our TELUGU TALLI to be RAPED in the streets of India.

    Nifty, Sensex to face resistance: Weekly market report

    Weakness may set in after Tuesday

    Last week (ended on 21St February), we had mentioned the BSE 30-share Sensex and NSE’s 50-share Nifty may rise some more. Closing in the positive through out this week, the Nifty has closed the week at its highest since 23 January 2014.

     

    The BSE Sensex closed the week that ended on 28th February, at 21,120.12 (up 419.37 points or 2.03%), while the NSE Nifty closed at 6,276.95 (up 121.50 points or 1.97%) for the week.

     

    Ignoring the negative news from the US and the weakness on the Asian bourses, the domestic indices continued to close in the positive for the second consecutive session on Monday. The National Association of Realtors said existing home sales fell 5.1% in January to an 18-month low. Sales of standing homes have dropped in five of the past six months. Nifty closed at 6,186 (up 31 points or 0.50%).

     

    Ahead of the February futures and options expiry, the Indian market on Tuesday witnessed a highly volatile session. However, the benchmarks managed to close in the green. Nifty closed at 6,200 (up 14 points or 0.23%).

     

    The Bimal Jalan panel, which scrutinised applications for new bank licences, on Tuesday submitted its report along with shortlisted entities to the Reserve Bank of India (RBI). RBI had constituted the Jalan committee to examine the fit-and-proper criteria, business plans, corporate governance practices, etc, of applicants.

     

    On Wednesday, the market performed under the news from the political front, where eleven regional parties formed an alliance on Tuesday to contest general elections, presenting themselves as an alternative to the ruling Congress party and the opposition Bharatiya Janata Party. While on the other hand, a report by Moody's analytical arm says that though downside risks to the economy have receded in recent months, it is likely that the growth engine will continue to sputter until 2015 even if "business-friendly" Narendra Modi becomes prime minister. Nifty closed at 6,239 (up 39 points or 0.62%).

     

    The stock market remained closed on Thursday on account of Mahashivratri.

     

    Federal Reserve Chair Janet Yellen at the semi-annual testimony on the economy and monetary policy repeated that the central bank is likely to maintain its strategy of gradually trimming asset purchases. She also repeated that the Fed's pledge to keep the benchmark interest low at least as long as unemployment stays above 6.5% and the outlook for inflation doesn't exceed 2.5%. While back home, BJP's prime ministerial candidate for this year's elections Narendra Modi made his reformist agenda and promised policy implementation in a speech on Thursday. The market opened up in the green and remained in the positive for the entire session. Nifty closed at 6,277 (up 38 points or 0.61%).

     

    For the week, among the other indices on the NSE, the top two performers were Pharma (5%) and Auto (3%), while the worst two performers were Metal (3%) and Commodities (1%).

     

    Among the Nifty stocks, the top five stocks for the week were BHEL (11%); Hindalco Industries (8%); Bank of Baroda (6%); Lupin (6%) and Axis Bank (6%), while the top five losers were NTPC (15%); Tata Steel (8%); NMDC (7%); Maruti Suzuki (5%) and Sesa Sterlite (4%).

     

    Of the 1,381 companies on the NSE, 666 companies closed in the green, 658 companies closed in the red, while 57 companies closed flat.

     

    Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:

     

    ML Top  sector

     

    ML Worst sector

     

    Pharma

    5%

    Consumer Products

    -1%

    Oil & Gas

    4%

    Foods & Beverages

    -1%

    Hotels

    3%

    Shipping

    -1%

    Chemicals

    3%

    Steel

    -5%

    Auto

    3%

    Energy

    -6%

     

  • User

    A Thin Dividing Line: An eye-opener on Indian losses due to tax treaties

    A documentary on the working of tax havens in the context of the double taxation avoidance treaty between India and Mauritius reveals that while India may have received foreign investments due to the treaty, tax losses on its account run to the tune of tens of thousands of crores. Is it worth it?

    Well known independent journalist and educator, Paranjoy Guha Thakurta’s latest documentary, “A Thin Dividing Line” brings out how tax havens or low tax jurisdictions blur the dividing line between legal forms of tax avoidance, euphemistically called tax planning, and illegal forms of tax evasion or money laundering. The documentary was screened as Moneylife Foundation’s 200th event to an informed audience on 28th February, followed by a discussion with Mr Thakurta. The hour-long documentary includes views from high ranking Indian tax officials, academicians, politicians and an array of top Mauritian officials including its former prime minister on the infamous treaty signed in 1982.

     

    Ever since Indian economic liberalisation in 1991, over 40% of investments via foreign institutional investment (FII) and foreign direct investment (FDI) have been routed through Mauritius. But why is Mauritius more popular than other tax havens? The film suggests it is the proximity to India and the fact that over 60% of Mauritius residents are from Indian origin. The corporates in Mauritius pay effective tax of 2%. In India, laws and rules have been created and defended ostensibly because these have helped attract foreign investments. However, India has not necessarily benefitted from all these foreign investments to the extent envisaged or anticipated. Greater transparency in financial transactions, stricter regulation and more effective implementation of existing laws are needed. Even if certain financial transactions adhere to the letter of the law, not all of these are desirable or beneficial for humankind.

     

    With the treaty, India has given up its right to levy capital gains tax under article 13. Mauritius does not charge capital gains tax allowing foreign investors to take advantage of the treaty to avoid paying taxes. Mr Thakurta said, “An estimate done by a study puts a figure of many tens of thousands crores in loss for Indian exchequer.”

     

    Mauritius authorities interviewed in the documentary talk about due diligence, compliances and safe guards to ensure clean business, the need for resident directors and other checks. However, it is an open secret that Mauritius is packed with ‘nameplate’ companies with top accountants and lawyers in India helping to set them up from India itself. The process of hiding the trail of beneficial ownership through layers of shell companies that sometimes transmit money through multiple tax havens is also well known to the government and Indian authorities.

     

    Mr Thakurta’s film discusses “round-tripping” to make it legal. He says, “It’s not like laws in India cannot be enforced, but there are loopholes that are not plugged. Those responsible are incapable or deliberately not doing it.”

     

    In the discussion that followed, a well know capital market  commentator pointed how the stock price of tiny companies listed on the Indian market are routinely rigged up a few hundred times and then sold to a faceless FII usually based in Mauritius, thus allowing easy laundering of funds. Moneylife editor Debashis Basu pointed out how every issue of the magazine published examples of stocks that are so-ramped up by as much as 2,000% sometimes (under a section titled Unquoted). But four years after the magazine began to publish these brazen examples of manipulation, the regulator who has spent crores of rupees on market surveillance software has failed to act.

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    User

    COMMENTS

    Veeresh Malik

    6 years ago

    I would like to request MoneyLife and Paranjoy to kindly release this documentary for general viewing online as well as make it free of copyright.

    REPLY

    Sucheta Dalal

    In Reply to Veeresh Malik 6 years ago


    Hey veeresh … the sentiment is great, but Paranjoy crowd funds his documentaries and he has not even recovered costs yet.

    In fact, ideally, people should buy the DVDs… he seeks a nominal donation of Rs200 and show it to their own groups so that more people can view it!

    Shivakumar Patil

    In Reply to Sucheta Dalal 6 years ago

    Sucheta,

    I would like to watch the documentary is there any way I can order it online or get access online by paying a fee.

    pravsemilo

    In Reply to Sucheta Dalal 6 years ago

    Can it be arranged to have the documentary CD shipped?

    CA PRADEEP AGARWAL

    In Reply to Sucheta Dalal 6 years ago

    I feel Madam Dalal should not side with Paranjoy, otherwise as Veeresh has said and appreciated Paranjoy's work, so Paranjoy should say so himself,regarding Costs.

    Sucheta Dalal

    In Reply to CA PRADEEP AGARWAL 6 years ago

    Excuse me? should not side with Paranjoy? What on earth is that supported to mean? He is the film maker. And we hosted the screening at Moneylife. I only repeated what Paranjoy said there… donations were collected by him personally, NOT BY US. You clearly have a problem understanding.
    Maybe you dont even know that Veeresh Malik is a consulting editor at Moneylife , but based in Delhi

    Veeresh Malik

    In Reply to CA PRADEEP AGARWAL 6 years ago

    Dear CA PRADEEP AGARWAL Ji, I can not understand what you are trying to say, and nobody is "taking sides". I think we all need to be on the same side and that is, simply, the India side. And in addition, have just returned after spending a few hours with Mr. Guha Thakurta, where the concept of crowd funding was discussed. Voluntary donations from resident Indians are appreciated, and a system may be put in place soon for that, so please await further information on that.

    CA PRADEEP AGARWAL

    In Reply to Veeresh Malik 6 years ago

    Dear Veeresh,
    Actually no comments after Ms Dalal's remarks

    CA PRADEEP AGARWAL

    6 years ago

    Also feel the losses should be recovered from the Govt of the day or there should be mid term review alongwith the white paper and beneficiaries.

    CA PRADEEP AGARWAL

    6 years ago

    Feel politicians should take public into confidence and after looking into all pros and cons given to FIIS/FUNDS and people/Organisations, in the guise of FIIS.

    CA PRADEEP AGARWAL

    6 years ago

    Feel politicians should take public into confidence and after looking into all pros and cons given to FIIS/FUNDS and people/Organisations, in the guise of FIIS.

    CA PRADEEP AGARWAL

    6 years ago

    Who is really benefitted, under whose patronage

    Amit Prabhu

    6 years ago

    IS it possible to put the video on youtube. It can reach out to a lot more people.

    VIJAY SHAH

    6 years ago

    VERY FEW COMPANIES LISTED ON BOMBAY STOCK EXCHANGE (BSE) ARE TOTALLY DEBT FREE

    VIJAY SHAH

    6 years ago

    DOING BUSINESS 2014
    -The World Bank and the International Finance Corporation (IFC) dated 30-10-2013
    INDIA
    Ease of doing business (rank) 134/189
    Starting a business (rank) 179/189
    Registering property (rank) 92/189
    Trading across borders (rank) 132/189
    Getting credit (rank) 28/189
    Dealing with construction permits (rank) 182/189
    Enforcing contracts (rank) 186/189
    Getting electricity (rank) 111/189
    Protecting investors (rank) 34/189
    Resolving insolvency (rank) 121/189
    Paying taxes (rank) 158/189

    VIJAY SHAH

    6 years ago

    THANKS TO SATYAM, WE GOT ONE USEFUL (IMPORTANT) COLUMN OF PLEDGING OF SHARES IN SHAREHOLDING PATTERN WHICH COMES EVERY THREE MONTHS IN BSE INDIA DOT COM

    VIJAY SHAH

    6 years ago

    FOR EXAMPLE HUBTOWN LIMITED HAS PLEDGED ALL MOST 79.50% OF THEIR HOLDING

    VIJAY SHAH

    6 years ago

    SOME COMPANIES ARE GETTING SUSPENDED FOR TEN OR TWELVE YEARS LISTED ON BOMBAY STOCK EXCHANGE AND THEN THE STOCK PRICES OF THAT PARTICULAR COMPANIES ARE RISING TO THOUSAND PERCENT FOR EXAMPLE POLSON LIMITED OR SAY EMED DOT COM TECHNOLOGIES LIMITED

    VIJAY SHAH

    6 years ago

    TO SUCHETA JE ONE MORE SCAM AND THIS TIME IT IS AGAINST (SOME ONE IS MIS-USING BABARA GOLDSMITH' S NAME IN INTERNET) AND MISS BABARA GOLDSMITH IS WARNING TO TAKE CARE (SEE VIDEO) http://www.youtube.com/watch?v=n3zDcJcQs...

    VIJAY SHAH

    6 years ago

    ANOTHER COMPANY LISTED ON BOMBAY STOCK EXCHANGE NAMED NEELAMALAI AGRO INDUSTRIES LIMITED IS AVAILABLE IN THE LOT OF ONE HUNDRED SHARES, TO BECOME A SHAREHOLDER OF THIS COMPANY WE HAVE TO INVEST NEARLY ONE LAKH OF RUPEES

    VIJAY SHAH

    6 years ago

    AFTER NEARLY A DECADE OF DEMATERIALISATION STILL FEW SHARES ARE LISTED ON BOMBAY STOCK EXCHANGE IN PHYSICAL FORM FOR EXAMPLE BOMBAY OXYGEN CORPORATION LIMITED AND THAT TOO IN THE LOT OF FIVE SHARES

    VIJAY SHAH

    6 years ago

    I HAD POSTED THIS SAME MESSAGE EARIER ON 6-2-2014 IN MONEYLIFE WEBSITE

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