Supreme Court: No sanction required for prosecution in court-monitored cases
The Supreme Court held that no approval from the Central Government is required by the Central Bureau of Investigation (CBI) to prosecute senior bureaucrats in court-monitored corruption cases. The court cleared that the sanction is not necessary under section 6A of the Delhi Special Police Establishment (DSPE) Act when the case under the Prevention of Corruption Act is monitored by court.
The court gave this ruling over the petition filed in coal blocks allocation scam to seek its direction to do away with the provisions of prior sanction of the Centre in cases monitored by court.
What is Coal allocation scam?
Coal allocation scam or Coalgate is a political scandal concerning the Indian Government’s allocation of the nation’s coal deposits to Public Sector Entities (PSEs) and private companies by Prime Minister Manmohan Singh. As per the audit report of the Comptroller and Auditor General (CAG) of India, allocation of coal blocks without bidding has caused a huge loss of 1.86 lakh crore to the India’s exchequer.
What is the Delhi Special Police Establishment (DSPE) Act?
DSPE Act, 1946 is a legislation which provides for the constitution of a special police force in Delhi for the investigation of certain offences in the Union territories, for the superintendence and administration of the said force and for the extension to other areas of the power and jurisdiction of the members of the said force in regards to the investigation of specific offences as mentioned in this law.
‘Indian Idol 2′ winner Sandeep Acharya passed away
Sandeep Acharya, who won the second season of Indian Idol in 2006, passed away at Gurgaon. He was suffering from jaundice and is survived by his wife and a one-month-old daughter. The playback singer belonged to Bikaner, Rajasthan.
About Sandeep Acharya
Runner up in the Golden Voice of Rajasthan.
Winner of India Idol Season 2 on April 22, 2006. After winning the singing reality show, he released his first album “Mere Saath Saara Jahaan“.
Winner of the best new Bollywood talent in New Jersey, USA.
Bagged the Sur Aradhna award for the best upcoming male singer category.
The upcoming album and songs of Playback singer are such as, ‘O Sanam Tere Bina’, Kuyn Ni Aayo re, etc.
Angela Merkel sworn in as German chancellor for 3rd time
German Chancellor Angela Merkel sworn in for a third term after being reelected in a vote in the lower house of parliament. The event marks the beginning of the third so-called grand coalition in the Germany’s post-war history.
Merkel’s conservative Union bloc – The Christian Democratic Union (CDU) and Bavarian Christian Social Union (CSU) won 41.5% of vote. To gain absolute majority they formed coalition with their rivals Social Democrats (SPD). By this coalition, for the next four years, Europe’s biggest economy will be ruled by the Germany’s two biggest parties.
The new government faces a host of challenges, from bedding down European reforms aimed at shielding the bloc from future crises, to seeing through Merkel’s costly switch from nuclear to renewable energy, etc.
Note:Angela Merkel is a former research scientist who has been the Chancellor of Germany since 2005, and the leader of the Christian Democratic Union (CDU) since 2000. She is the first woman to hold either office.
RBI mid quarter monetary policy review: All rates remain unchanged
The Reserve Bank of India (RBI) in its mid-quarter Monetary Policy Review kept the interest rates unchanged. By this move, the central bank gave the indication that solely monetary policy can’t deal with the inflation; the government must take initiatives on supply-side reforms and put in place better storage facilities to hold food prices.
This has come as a welcome relief for the industry which is facing depressing economic environment as indicated 1.8% growth in industrial output in November 2013.
What are Key policy rates?
The Key Policy Rates or signally rates are decided by RBI. These are Bank Rate, Repo Rate, Reverse Repo Rate, Marginal Standing Facility, Cash Reserve Ratio and Statutory liquidity ratio (SLR).
On the basis of an assessment of the current and evolving macroeconomic situation, the RBI decided to:
Keep the policy Repo Rate under the Liquidity Adjustment Facility (LAF) unchanged at 7.75%, and
Keep the Cash Reserve Ratio (CRR) of scheduled banks unchanged at 4.0% of the Net Demand and Time Liability (NDTL).
Wait for more data before taking policy action, as current inflation is high but its trajectory is uncertain.
Thus, the reverse repo rate under the LAF will remain unchanged at 6.75%, and the Marginal Standing Facility (MSF) rate and the Bank Rate at 8.75%.
Iran space mission sends monkey to space for second time
Iran has revealed that it has successfully sent a monkey into space for the second time in 2013 as part of a space mission aimed at manned space flight.
As per Iran’s President Hassan Rouhani, the monkey – named Fargam, or Auspicious – came back from space in perfect health. For this programme, Iran used a liquid fuel rocket technology for the first time. In January 2013, Iran had claimed to have sent a monkey to an altitude of about 120km (75 miles) in a Pishgam rocket for a sub-orbital flight before returning successfully to Earth. However, the success of the first monkey flight was debated when a different animal was shown in images released after the touchdown. But Iran rebuffed those debates explaining that the picture of another monkey was mistakenly which was undergoing suitability tests.
Why the West apprehends Iran’s space programme?
The Western nations have raised concerns over Iran’s space programme as they fear the technology could be used in ballistic missiles. Iran is already under international pressure to give up its alleged nuclear programme and is also under the US imposed crude oil trade embargo for the same reason.
Peter O’Toole of ‘Lawrence of Arabia’ fame passed away
Legendary actor Peter O’Toole (81), applauded for his role in the classic 1962 film Lawrence of Arabia, passed away in London.
Peter O’Toole
He was an Irish actor who made his film debut in 1959. He rose to stardom playing T. E. Lawrence in Lawrence of Arabia (1962) for which he was nominated for Academy Award for the first time. He received seven further Oscar nominations – for Becket (1964), The Lion in Winter (1968), Goodbye, Mr. Chips (1969), The Ruling Class (1972), The Stunt Man (1980), My Favorite Year (1982) and Venus (2006) – and holds the record for the most Academy Award acting nominations without a win. He bagged four Golden Globes, a BAFTA and an Emmy, and was the recipient of an Honorary Academy Award in 2003. He bid adieu to his 50-year acting career in 2012.
Historic Lokpal and Lokayuktas Bill passed
The parliament passed the historic Lokpal and Lokayuktas Bill, paving the way for establishment of an ombudsman to fight against corruption in public offices and ensure accountability on the part of public officials, including the Prime Minister, but with some safeguards. Welcoming the Bill’s passage, 76-year-old social activist Anna Hazare broke his fast, into its ninth day, in Ralegaon Siddhi, Maharashtra.
What is Lokpal Bill 2011?
The Lokpal Bill, 2011, also referred to as The Lokpal and Lokayuktas Bill, 2011, is an anti-corruption law in India which “seeks to provide for the establishment of the institution of Lokpal to inquire into allegations of corruption against certain public functionaries and for matters connecting them. The bill was introduced in parliament following massive public protests led by anti-corruption crusader Anna Hazare and his associates.
Highlights of Lokpal and Lokayukta Bill 2011
The bill provides for the setting up of a Lokpal at the Centre and Lokayuktas at the States.
The Lokpal consists of a Chairperson and a maximum of eight members of which 50% shall be judicial members.The Chairperson may be either a serving or retired Chief Justice of India, or a Judge of the Supreme Court or an eminent person. Fifty per cent of the total members shall be from the higher judiciary.
The Chairperson and the members of the Lokpal shall be appointed by the President on the recommendation of the Selection Committee consists of the Prime Minister, Lok Sabha Speaker, Leader of the Opposition in the Lok Sabha, Chief Justice of India or a Supreme Court judge nominated by him. One eminent person recommended by the Selection committee and nominated by the President will be its fifth member.
Lokpal will have the power of superintendence and direction over any investigation agency including CBI for cases referred to them by Lokpal.
A high powered Committee chaired by the Prime Minister will recommend selection of the Director, CBI. Directorate of Prosecution headed by a Director of Prosecution under the overall control of Director.
The appointment of the Director of Prosecution, CBI will be made on the recommendation of the Central Vigilance Commission.
Transfer of officers of CBI investigating cases referred by Lokpal with the approval of Lokpal.
The Bill also mandates setting up of Lokayuktas through enactment of a law by the State Legislature within 365 days from the date of commencement of the Act.
RBI outlines action plan to tackle NPAs; discussion paper open for public comments
The Reserve Bank of India (RBI) outlined a corrective action plan to minimize rising Non-performing assets (NPAs). The plan include three steps:-
To motivate early identification of problem cases.
To restructure the accounts timely , which are considered to be viable, and
Banks must take prompt actions for recovery or sale of unviable accounts.
As per the RBI discussion paper, “Early recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalizing Distressed Assets in the Economy”, which is open for public comments till January 1, 2014, it would set up a Central Repository of Information on Large Credits (CRILC) to collect, store, and disseminate credit data to lenders. The credit information will include all types of exposures as defined under RBI Circular on exposure norms, and will also include data on lenders’ investments in bonds/debentures issued by the borrower/obligor.
Banks will have to furnish credit information to CRILC on all their borrowers having aggregate fund-based and non-fund based exposure of Rs.5 crore and above .
On the asset sales front, the RBI has shown readiness in allowing a lender to spread any loss over two years provided the loss is fully disclosed and allowing leverage buyouts by specialized entities. It also suggests takeout financing/refinancing possible over a longer period and not construing it as restructuring. RBI also proposed more expensive future borrowings for borrowers who do not cooperate with lenders in resolution.
What are Non performing Assets (NPA)?
Any asset, including a leasePDFd asset, becomes a non performing when it ceases to generate income for the bank are called Non Performing Assets or Bad loans.
Note: RBI proposed these rules to help banks to recover bad debts in an effort to ease the financial stress on banks as the economy slows. This discussion comes as there is fear of bad loans to gain a record high of around Rs. 2.9 trillion by the end of the fiscal or 4.5 per cent of the total banking assets.
West Bengal adopts Bill to tackle illegal activities of Chit Funds
With a view to tackle illegal activities of Chit Funds, the West Bengal Assembly adopted a fresh Bill ‘West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2013′.
The bill has arrived close on the heels of Sardha Chit Fund Scam which swindled the investors of their money.
Under the provisions of the new Bill personal properties of a person, who has borrowed money from defaulting Chit Fund Company will be attached besides, the properties of the owner, partners, directors and employees of the Financial Institutions will also be impounded.
As per State Finance Minister, the Government has returned money to 2 lakhs 87 thousand people thus far, who have been cheated by the Sardha Group. The Government has spent 165 crore rupees for this purpose till now.
There are vociferous demands for CBI investigations into the case and recompense the duped investors by selling of the properties of those who were involved in the scam.
What happened in Sardha Chit Fund Scam?
The Saradha Chit Fund Scam is a financial scam that was caused by the collapse of a Ponzi scheme run by Saradha Group, a syndicate of Indian firms that was thought to be operating a wide range of collective investment schemes in Eastern India. The group crumbled in April 2013, inflicting an estimated loss of Rs. 200–300 billion (US$4–6 billion)to over 1.7 million depositors.The state government of West Bengal set up an inquiry commission to investigate the collapseand also set up a fund of Rs. 5 billion ($92 million) to ensure that low-income investors are not bankrupted. The Union Government through the Income Tax Department also launched a multi-agency investigation along with the CBI to probe the Saradha scam, as well as other similar Ponzi schemes.
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