Why UID project is all that important at this juncture?
Surprise of surprise, after singing the virtue of this project for three years, all of a sudden this project has become a nuisance and Nandan Nilekani has become the fall guy! The government which proclaimed to have hit upon a game changing idea by constituting the body and placing Mr nandan Nilekani at the helm of its affairs now says its not necessary!
Unless the electorates and the intelligentsia can stem the rot and firmly dictate terms- as Anna and his team do- we’d really lose out- in a big way! The country is already suffering from confidence deficit and international investors are no longer that willing to put their money in India. The sliding rupee evidences it and the situation would further precipitate if reforms are not brought back on the rails.
The political adhocracy has gotten into the nerves!
The dilly-dallying of the political class and lack of effective governance by the current regime has already started impacting our economic progress. UID would come handy to arrest the perennial scourge – corruption- comprehensively, when effective delivery of subsidy is the concern.
Now that ‘Right to Food’ bill is on the verge of becoming an Act, which would see food subsidy shooting up to dizzy heights, the financial profligacy would reach a new level unless we bring systematic checks like UID in to their right place.
That, subsidies do not reach their intended beneficiaries is a fact:
Billions of rupees are spent every year to uplift the common men from their poor state and as per the admission of a former PM and then very recently by his son (Rajiv and Rahul Gandhi) not even 15% of the expenditure reaches them. Now the technology is available by which the entire realm of Babudom could be by-passed and the PM can straightaway make a money transfer, be it an unemployment allowance, old age allowance, widow allowance or the payments for MG- NREGA; to the beneficiary accounts. That cannot be done unless we adopt a system, which will be full proof and would not permit duplication of beneficiary accounts. And for that the Iris and fingerprint- both at the same time- profiling is important.
A cost benefit analysis:
The people who rabidly oppose UID fail to see the bigger picture. The project would cost just around 2 US$ billion Dollar and that is small change compared to the amount that is spent on social welfare projects in India. For example: more than 4 times that money was spent last year on MG- NREGA, where it is no secret that bulk of the money does not reach the targeted beneficiary.
The privacy conundrum:
Agreed, there could be privacy issues; yet, compared to the benefits that it would bring, we should get ready to face those situations- if at all they occur.
Privacy and the common man:
Well, that’s a joke! 99 % of the people do not give two hoots to privacy. Well you may brand them as ignorant, beyond that please consider the following:
It’s common knowledge that, the Police pick up the common villagers and no entry is made in the station diary for weeks. For two square meals they go to towns where they cannot open a Bank account or cannot provide any document to prove that they exist. Unless they swell the ranks of some corrupt politician- as supporters or goons- they would not get a ration card or a driving license. When they die by falling from a sub-urban train or on a road accident, so often, they are just a number. Every year, thousands of common people turnout as dead corpses- in all conceivable places- and then police close the files by marking ‘unidentified dead body- murder suspected/ not suspected’. Ditto is the case with poor young women disappearing and then getting exploited for their entire life in brothels. If anything, they-the common men- would love to know that they exist and even if their data is stolen, it can hardly cause them any more harm. Is it not said that: ‘when you fight with little to lose you fight with great advantage’!
A face for the millions of faceless:
If it is not implemented then the common man will continue to live a faceless and ungainly life.
Now, who all are so concerned about Privacy?
It’s the rest 1% who milk the system- either as corrupt bureaucrats, businessmen or politicians. Unfortunately the entire lots of indoctrinated communists are also swelling their ranks! Credible identification of common women would make it difficult for pimps and brothels to run their business with impunity. For, then the chances of tracing victims to their families and thereby unearthing the entire trail would become very easy and simple. Sting operations by citizen journalists would do what the entire police departments are unable to do till date. Fingerprint matching of a missing woman can be done by anybody who is computer savvy and gets an access to the fingerprints of the missing woman. It would be virtually impossible for brothel owners – be it in Kamathipura or Sonagachi- to hide the identity of their new recruits. By extension, the same is also true for unearthing the other corrupt ways of rich and influential- like forced labor in brick kilns and other such body shops- and they have every reason to be wary of that!
An effective check against corruption:
UID is going to make it difficult for the corrupt bureaucracy to continue with their corrupt ways. IMHO Team Anna should consider backing a robust UID project than demanding for the inclusion of smaller babus under the purview of “Lok Pal”. Direct cash transfer would leave very little room for the smaller bureaucrats to play with the economic entitlements of the common man and the other entitlement could be addresses through a functioning judiciary, eventually.
Economic immigrants getting a backdoor entry into Citizenry:
This concern is quite valid and necessary checks could be instituted to prevent non-citizens acquiring UID cards. Scrapping the project under this pretext would tantamount to “throwing the baby with the bath water”.
The last words:
Unless we plug the loopholes, with sky rocketing subsidies and political baggage like MGNREGA, the country would fast recede into an abyss, as it happened in 1990. The Budget deficits are increasing and there is no end in sight of political profligacy and populist measures like increasing Food, fertilizer and Kerosene subsidies. There is no denying that a welfare state has to defend its weaker sections and that’s why these were fashioned at the first place. But, the moot question is: Are there no other more efficient ways of delivering the subsidies? Yes there are.
The government rightly indicated its gradual movement towards direct cash transfers, in the last budget. This will substantially cut the pilferage of the subsidy and increase efficiency of delivery. So, lets whole-heartedly support the UID project
Monday, December 19, 2011
Thursday, December 8, 2011
Engaging the culture vultures!
We get influenced by a superior culture- It’s the law of nature. This was true for Sanskrit when Brahminism was dominant, for Parsi and Arabic when Mughals ruled India. So naturally when English is the “lingua franka” – world language- most of us aspire to have a better command over this language.
English did not teach us casteism neither they prevent us casting that off – lock stock and barrel- to make our culture superior. We decide to continue the evil practice of casteism for our own selfish interests. What else proves large number of Brhmins carrying the so-called sacred threads on their shoulders- in 21st century?
This hypocrisy, of claiming to have universal love– Basudhaiva Kutumbakam- yet being grossly intolerant towards the next door neighbor becomes all that acute when we factor the example of Gandhiji- the father of our nation- into the inaction of the vast majority of his successors. Till his late youth, being a devout Baishnava, he- Gandhiji- also wore sacred threads but when he realized what a sadistic system these threads represented, he stopped wearing such threads. Despite having such a glowing example and having accepted him as our father of nation how can Brahmins of today justify wearing sacred threads, which proudly represents casteism? All other excuses for continuing this evil practice simply do not wash, do they?
For that matter; is there anything to be proud of our culture of obscurantism represented by the blatant discrimination practiced by the priestly class of Puri with respect to granting admission into Jagannath temple?
Till 1970s Dalits were not admitted into this sacred shrine. Yet to fasten the Dalits to Jagannath cult and there by continue their economic exploitation we fashioned such stories like “Dasia Bauri” etc.! Compare and contrast the situations of today and the story depicted in Dasia Bauri and the truth would reveal itself. In the impugned story the lord accepted his coconut yet never mentioned about granting him admission or advised Pandas to invite him or his representative into the temple. And today when the Dalits have got an automatic admittance – so as to have the numbers to fight with non-Hindus- no one talks of anything wrong happening and Sri Mandira becoming “Apabitra”!
Yet just 80 years back Gandhiji did not go to the shrine when he knew about this practice. What is galling is that in case of many other important shrines Dalits were granted admittance- even if temporarily- as a token of deference to Gandhiji but in Puri he faced virulent opposition and the Pandas were in no mood to accommodate Mahatma’s humanistic concerns.
Before that incident, the humiliation of Madhu Barister’s daughter – Sailabala- is well recorded in “Desha Kala Patra” -a magnum opus by Jagannath Prasd Das ( a retired IAS officer). Her reluctant entry into this shrine after the fervent pleading by a Panda and then that having been made an issue by other pandas snow balled into a major issue and not only she- sailabala- was humiliated and subsequently rescued with the help of police, a lot of food articles were also destroyed to placate the recalcitrant Pandas.
Very recently our Rajya Sabha MP- Pyari Mohan Mohapatra -joined issues with respect to temple entry and we know how a strong cohort ridiculed him for expressing a humanitarian view that Jagannath temple should be open for all.
Now lets look at the language issue:
Its common knowledge that when a rustic western Odia addresses his father as "Bua", so called cultured people of east laugh at him and if he happens to be in Cuttack or Bhubaneswar he apes these people in order to avoid being ridiculed. Remember, he does not speak anything wrongly. It’s we who ridicule his language (koshali or a dialect of that) as Bengalis did to Odias just 150 years ago! What better example of “History repeats itself!”
In contrast the contribution of John Beams, Revenshaw - British officers- and that of many other British officers is immense in saving our beloved mother tongue- Odia. And what is this farce of creating hatred for English because some people choose to address their mother as Mummy instead of Maa? I address my mother as Maa but does that give me a right to ridicule others who do not do so?
IMHO, by sending our wards to Odia medium schools we do not automatically get a right to ridicule others who send theirs to English medium schools.
If some people are educating their children through Odia medium schools, it’s fine. If the standard of education in Odia medium schools has come down then we- the alumni of such schools- have every reason to worry. Yet, we cannot raise the standard by ridiculing English medium schools. We- who studied in Odia medium schools- have to tighten our belts and reach out to our alma maters and then do something to arrest the rot and then, and then only, we can take pride in being the products of those schools.
So, why don’t we do that and instead go for the softer alternative- of ridiculing English medium schools? I have decided to run the full course, would you?
English did not teach us casteism neither they prevent us casting that off – lock stock and barrel- to make our culture superior. We decide to continue the evil practice of casteism for our own selfish interests. What else proves large number of Brhmins carrying the so-called sacred threads on their shoulders- in 21st century?
This hypocrisy, of claiming to have universal love– Basudhaiva Kutumbakam- yet being grossly intolerant towards the next door neighbor becomes all that acute when we factor the example of Gandhiji- the father of our nation- into the inaction of the vast majority of his successors. Till his late youth, being a devout Baishnava, he- Gandhiji- also wore sacred threads but when he realized what a sadistic system these threads represented, he stopped wearing such threads. Despite having such a glowing example and having accepted him as our father of nation how can Brahmins of today justify wearing sacred threads, which proudly represents casteism? All other excuses for continuing this evil practice simply do not wash, do they?
For that matter; is there anything to be proud of our culture of obscurantism represented by the blatant discrimination practiced by the priestly class of Puri with respect to granting admission into Jagannath temple?
Till 1970s Dalits were not admitted into this sacred shrine. Yet to fasten the Dalits to Jagannath cult and there by continue their economic exploitation we fashioned such stories like “Dasia Bauri” etc.! Compare and contrast the situations of today and the story depicted in Dasia Bauri and the truth would reveal itself. In the impugned story the lord accepted his coconut yet never mentioned about granting him admission or advised Pandas to invite him or his representative into the temple. And today when the Dalits have got an automatic admittance – so as to have the numbers to fight with non-Hindus- no one talks of anything wrong happening and Sri Mandira becoming “Apabitra”!
Yet just 80 years back Gandhiji did not go to the shrine when he knew about this practice. What is galling is that in case of many other important shrines Dalits were granted admittance- even if temporarily- as a token of deference to Gandhiji but in Puri he faced virulent opposition and the Pandas were in no mood to accommodate Mahatma’s humanistic concerns.
Before that incident, the humiliation of Madhu Barister’s daughter – Sailabala- is well recorded in “Desha Kala Patra” -a magnum opus by Jagannath Prasd Das ( a retired IAS officer). Her reluctant entry into this shrine after the fervent pleading by a Panda and then that having been made an issue by other pandas snow balled into a major issue and not only she- sailabala- was humiliated and subsequently rescued with the help of police, a lot of food articles were also destroyed to placate the recalcitrant Pandas.
Very recently our Rajya Sabha MP- Pyari Mohan Mohapatra -joined issues with respect to temple entry and we know how a strong cohort ridiculed him for expressing a humanitarian view that Jagannath temple should be open for all.
Now lets look at the language issue:
Its common knowledge that when a rustic western Odia addresses his father as "Bua", so called cultured people of east laugh at him and if he happens to be in Cuttack or Bhubaneswar he apes these people in order to avoid being ridiculed. Remember, he does not speak anything wrongly. It’s we who ridicule his language (koshali or a dialect of that) as Bengalis did to Odias just 150 years ago! What better example of “History repeats itself!”
In contrast the contribution of John Beams, Revenshaw - British officers- and that of many other British officers is immense in saving our beloved mother tongue- Odia. And what is this farce of creating hatred for English because some people choose to address their mother as Mummy instead of Maa? I address my mother as Maa but does that give me a right to ridicule others who do not do so?
IMHO, by sending our wards to Odia medium schools we do not automatically get a right to ridicule others who send theirs to English medium schools.
If some people are educating their children through Odia medium schools, it’s fine. If the standard of education in Odia medium schools has come down then we- the alumni of such schools- have every reason to worry. Yet, we cannot raise the standard by ridiculing English medium schools. We- who studied in Odia medium schools- have to tighten our belts and reach out to our alma maters and then do something to arrest the rot and then, and then only, we can take pride in being the products of those schools.
So, why don’t we do that and instead go for the softer alternative- of ridiculing English medium schools? I have decided to run the full course, would you?
Sunday, November 27, 2011
Lets support the UID project
Lets whole-heartedly support the UID project. Agreed, there could be privacy issues; yet, compared to the benefits that it would bring, we should get ready to face those situations- if at all they occur.
UID is going to make it difficult for the corrupt bureaucracy to continue with their corrupt ways and if it is not implemented then the common man will continue to live a faceless and much more ungainly life.
Billions of rupees are spent every year to uplift the common men from their poor state and as per the admission of a former PM and then very recently by his son (Rajiv and Rahul Gandhi) not even 15% of the expenditure reaches them. Now the technology is available by which the entire realm of Babudom could be by-passed and the PM can straightaway make a money transfer, be it an unemployment allowance, old age allowance, widow allowance or the payments for MG- NREGA; to the beneficiary accounts. That cannot be done unless we adopt a system, which will be full proof and would not permit duplication of beneficiary accounts. And for that the Iris and fingerprint- both at the same time- profiling is important.
IMHO, The people who rabidly oppose UID fail to see the bigger picture. The project would cost just around 2 US$ billion Dollar and that is small change compared to the amount that is spent on social welfare projects in India. Just as an example: 4 times that money was spent last year on MG- NREGA, where it is no secret that bulk of the money does not reach the targeted beneficiary.
Privacy and the common man:
Well, that’s a joke! 99 % of the people do not give two hoots to privacy. Well you may brand them as ignorant, beyond that please consider the following:
It’s common knowledge that, the Police pick up the common villagers and no entry is made in the station diary for weeks. For two square meals they go to towns where they cannot open a Bank account or cannot provide any document to prove that they exist. Unless they swell the ranks of some corrupt politician- as supporters or goons- they would not get a ration card or a driving license. When they die by falling from a sub-urban train or on a road accident, so often, they are just a number. Every year, thousands of common people turnout as dead corpses- in all conceivable places- and then police close the files by marking ‘unidentified dead body- murder suspected/ not suspected’. Ditto is the case with poor young women disappearing and then getting exploited for their entire life in brothels. If anything, they-the common men- would love to know that they exist and even if their data is stolen, it can hardly cause them any harm.
Who is so concerned about Privacy?
It’s the rest 1% who milk the system- either as corrupt bureaucrats, businessmen or politicians. Unfortunately the entire lots of indoctrinated communists are also swelling their ranks! Credible identification of common women would make it difficult for pimps and brothels to run their business with impunity. For, then the chances of tracing victims to their families and thereby unearthing the entire trail would become very easy and simple sting operations by citizen journalists would do what the entire police departments are unable to do till date. Fingerprint matching of a missing woman can be done by anybody who is computer savvy and gets an access to the fingerprints of the missing woman. It would be virtually impossible for brothel owners – be it in Kamathipura or Sonagachi- to hide the identity of their new recruits. The same is also true for unearthing the corrupt ways of rich and influential and they have every reason to be wary of that!
UID is going to make it difficult for the corrupt bureaucracy to continue with their corrupt ways and if it is not implemented then the common man will continue to live a faceless and much more ungainly life.
Billions of rupees are spent every year to uplift the common men from their poor state and as per the admission of a former PM and then very recently by his son (Rajiv and Rahul Gandhi) not even 15% of the expenditure reaches them. Now the technology is available by which the entire realm of Babudom could be by-passed and the PM can straightaway make a money transfer, be it an unemployment allowance, old age allowance, widow allowance or the payments for MG- NREGA; to the beneficiary accounts. That cannot be done unless we adopt a system, which will be full proof and would not permit duplication of beneficiary accounts. And for that the Iris and fingerprint- both at the same time- profiling is important.
IMHO, The people who rabidly oppose UID fail to see the bigger picture. The project would cost just around 2 US$ billion Dollar and that is small change compared to the amount that is spent on social welfare projects in India. Just as an example: 4 times that money was spent last year on MG- NREGA, where it is no secret that bulk of the money does not reach the targeted beneficiary.
Privacy and the common man:
Well, that’s a joke! 99 % of the people do not give two hoots to privacy. Well you may brand them as ignorant, beyond that please consider the following:
It’s common knowledge that, the Police pick up the common villagers and no entry is made in the station diary for weeks. For two square meals they go to towns where they cannot open a Bank account or cannot provide any document to prove that they exist. Unless they swell the ranks of some corrupt politician- as supporters or goons- they would not get a ration card or a driving license. When they die by falling from a sub-urban train or on a road accident, so often, they are just a number. Every year, thousands of common people turnout as dead corpses- in all conceivable places- and then police close the files by marking ‘unidentified dead body- murder suspected/ not suspected’. Ditto is the case with poor young women disappearing and then getting exploited for their entire life in brothels. If anything, they-the common men- would love to know that they exist and even if their data is stolen, it can hardly cause them any harm.
Who is so concerned about Privacy?
It’s the rest 1% who milk the system- either as corrupt bureaucrats, businessmen or politicians. Unfortunately the entire lots of indoctrinated communists are also swelling their ranks! Credible identification of common women would make it difficult for pimps and brothels to run their business with impunity. For, then the chances of tracing victims to their families and thereby unearthing the entire trail would become very easy and simple sting operations by citizen journalists would do what the entire police departments are unable to do till date. Fingerprint matching of a missing woman can be done by anybody who is computer savvy and gets an access to the fingerprints of the missing woman. It would be virtually impossible for brothel owners – be it in Kamathipura or Sonagachi- to hide the identity of their new recruits. The same is also true for unearthing the corrupt ways of rich and influential and they have every reason to be wary of that!
Saturday, November 5, 2011
Oppose bail for Raja and Kani
Why Thiru Andimuthu Raja and Ms Kanimozhi should not be let loose on bail?
Granting them bail on the basis of delay in sentencing them – though charges have been framed- would amount to gross miscarriage of justice. We have enough evidence to believe that this duo –along with their cohort- is responsible for a massive fraud.
A few facts about the 2G scam, while talking about Thiru Andimuthu Raja and Ms Kanimozhi, to keep things in the right perspective.
1. The 2G scam happened in 2008.
2. It was the AG- auditor General- which is a constitutional authority and who is not known for any political leaning, who quantified the scam and brought into light its enormous proportion.
3. The entire UPA government has been – time and again- trying to shield the culprits.
4. It’s the vigilantism of SC that saw the progress in the case and eventual arrest of the prime accused persons.
5. In case of Raja- It’s for the first time that a ruling union minister has been put into the prison for his misdeeds.
6. Going by the new paper report- the high profile detainees are not harassed inside the prison rather they enjoy VIP status and even their dietary habits are respected by the jail authorities by providing them with Idli and Dosa.
7. Last and the most important factor- these are the law makers- MPs!
Let’s take the case of two bail applications granted on- Friday, 4 November 2011.
1) Ramalinga Raju was jailed in January 2009 after he admitted to inflating the financials of Satyam Computer Services, then India's fourth-largest software services provider. He was granted bail after Two years and nine months. Raju was briefly granted bail last year by the Andhra Pradesh high court, but the Supreme Court cancelled it in October 2010. On Friday, 4 November 2011, the Supreme Court ordered his release on bail saying that no useful purpose will be served by keeping him and others in jail as the prosecution was at the fag end of presenting its evidence. (SOURCE: http://economictimes.indiatimes.com/tech/software/satyams-ramalinga-raju-two-others-get-bail/articleshow/10614555.cms)
2) Patna High Court today - 4 November 2011-granted regular bail to former RJD MP Md Shahabuddin in connection with a murder case in Siwan district in 2004. Shahabuddin facing life imprisonment in another case related to kidnapping-cum-murder of a CPI-ML (L) worker would, however, remain in judicial custody. He is currently lodged in Siwan jail. (source: http://www.dnaindia.com/india/report_former-rjd-mp-md-shahabuddin-gets-bail_1607359)
To understand the injustice done by letting loose Ramalinga Raju we have to compare his case with a comparable case in USA.
Around the same time -December’ 2008- a big ticket corporate fraud by Bernard Madoff was also unearthed in USA. Madoff was chairman of Bernard L. Madoff Investment Securities LLC from its startup in 1960 until his arrest on December 11, 2008. In March 2009, Madoff pleaded guilty to 11 federal felonies and on June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed. He accepted his fate and since then is serving his time in jail, without any scope of coming out.
And in India now after the passage of such a long time, Ramalinga Raju simply walks out on bail! Why can’t he be sentenced? Especially, when his crime is as clear as day light! What is this farce of letting him go on bail?
How unjust it is to grant a rapist or a murderer bail need very little explanation. It would suffice if we simply state the statistics. Its common knowledge that even half of the perpetrated rape cases are not reported for asserted reasons and out of the reported ones 85% of rape case do not result in conviction. Why? When the accused persons are not sentenced within a reasonable time, as per prevailing practice they become eligible for a bail; say after 6 months or so. When they come out on bails they gat a license to work out a compromise!
Is it possible to punish the high profile culprits in India?
Yes.
Anna Hazare's fast-unto-death stir from August 16, 2011 ended with a happy note on 28 august- Sunday-when the entire parliament resolved to find a break through and created precedents on the run up. However let’s remember that till date the government has not conceded any thing concrete, yet now this movement has shown that if we pursue with zeal then the government / Supreme Court would see the merit and would relent to create precedents.
So it’s difficult yet possible to ensure that these high profile accused persons do not go scot free and rather brought to justice for their misdeeds. To protect their personal rights we can facilitate setting up of a special court for having daily hearings to deliver justice within a reasonable time (say 180 days). In fact if we remember the anguish outbursts of the honorable SC judges, who are monitoring this case, they have already indicated similar measures from their side, in the past, while censuring CBI and the government agencies for undue delays in this sensitive case.
15 May 2012
A Raja is let loose on Bail!
What a farce! Thousands of crores of Rupees was lost and there is tell-tale sign of his involvement and defrauding the exchequer. Still he could not be sentenced in almost 2 years! Why? As concerned electorates we must make our representatives answer this. If they do not answer then we should get them changed. Do we have it in us?
Granting them bail on the basis of delay in sentencing them – though charges have been framed- would amount to gross miscarriage of justice. We have enough evidence to believe that this duo –along with their cohort- is responsible for a massive fraud.
A few facts about the 2G scam, while talking about Thiru Andimuthu Raja and Ms Kanimozhi, to keep things in the right perspective.
1. The 2G scam happened in 2008.
2. It was the AG- auditor General- which is a constitutional authority and who is not known for any political leaning, who quantified the scam and brought into light its enormous proportion.
3. The entire UPA government has been – time and again- trying to shield the culprits.
4. It’s the vigilantism of SC that saw the progress in the case and eventual arrest of the prime accused persons.
5. In case of Raja- It’s for the first time that a ruling union minister has been put into the prison for his misdeeds.
6. Going by the new paper report- the high profile detainees are not harassed inside the prison rather they enjoy VIP status and even their dietary habits are respected by the jail authorities by providing them with Idli and Dosa.
7. Last and the most important factor- these are the law makers- MPs!
Let’s take the case of two bail applications granted on- Friday, 4 November 2011.
1) Ramalinga Raju was jailed in January 2009 after he admitted to inflating the financials of Satyam Computer Services, then India's fourth-largest software services provider. He was granted bail after Two years and nine months. Raju was briefly granted bail last year by the Andhra Pradesh high court, but the Supreme Court cancelled it in October 2010. On Friday, 4 November 2011, the Supreme Court ordered his release on bail saying that no useful purpose will be served by keeping him and others in jail as the prosecution was at the fag end of presenting its evidence. (SOURCE: http://economictimes.indiatimes.com/tech/software/satyams-ramalinga-raju-two-others-get-bail/articleshow/10614555.cms)
2) Patna High Court today - 4 November 2011-granted regular bail to former RJD MP Md Shahabuddin in connection with a murder case in Siwan district in 2004. Shahabuddin facing life imprisonment in another case related to kidnapping-cum-murder of a CPI-ML (L) worker would, however, remain in judicial custody. He is currently lodged in Siwan jail. (source: http://www.dnaindia.com/india/report_former-rjd-mp-md-shahabuddin-gets-bail_1607359)
To understand the injustice done by letting loose Ramalinga Raju we have to compare his case with a comparable case in USA.
Around the same time -December’ 2008- a big ticket corporate fraud by Bernard Madoff was also unearthed in USA. Madoff was chairman of Bernard L. Madoff Investment Securities LLC from its startup in 1960 until his arrest on December 11, 2008. In March 2009, Madoff pleaded guilty to 11 federal felonies and on June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed. He accepted his fate and since then is serving his time in jail, without any scope of coming out.
And in India now after the passage of such a long time, Ramalinga Raju simply walks out on bail! Why can’t he be sentenced? Especially, when his crime is as clear as day light! What is this farce of letting him go on bail?
How unjust it is to grant a rapist or a murderer bail need very little explanation. It would suffice if we simply state the statistics. Its common knowledge that even half of the perpetrated rape cases are not reported for asserted reasons and out of the reported ones 85% of rape case do not result in conviction. Why? When the accused persons are not sentenced within a reasonable time, as per prevailing practice they become eligible for a bail; say after 6 months or so. When they come out on bails they gat a license to work out a compromise!
Is it possible to punish the high profile culprits in India?
Yes.
Anna Hazare's fast-unto-death stir from August 16, 2011 ended with a happy note on 28 august- Sunday-when the entire parliament resolved to find a break through and created precedents on the run up. However let’s remember that till date the government has not conceded any thing concrete, yet now this movement has shown that if we pursue with zeal then the government / Supreme Court would see the merit and would relent to create precedents.
So it’s difficult yet possible to ensure that these high profile accused persons do not go scot free and rather brought to justice for their misdeeds. To protect their personal rights we can facilitate setting up of a special court for having daily hearings to deliver justice within a reasonable time (say 180 days). In fact if we remember the anguish outbursts of the honorable SC judges, who are monitoring this case, they have already indicated similar measures from their side, in the past, while censuring CBI and the government agencies for undue delays in this sensitive case.
15 May 2012
A Raja is let loose on Bail!
What a farce! Thousands of crores of Rupees was lost and there is tell-tale sign of his involvement and defrauding the exchequer. Still he could not be sentenced in almost 2 years! Why? As concerned electorates we must make our representatives answer this. If they do not answer then we should get them changed. Do we have it in us?
Tuesday, October 4, 2011
‘Realization at Pietermaritzburg’
About Petermartizburg:
The estimated current population of Pietermaritzburg is around 500,000 (including neighboring townships) and has one of the largest populations of Indian South Africans in South Africa. Pietermaritzburg is on a plateau with an elevation of 596 meters. Prior to the end of apartheid in 1994, Pietermaritzburg was the capital of Natal Province. The average lower temperature in Pietermaritzburg during June is 3 degree Celsius and the recorded lowest ever is -4 degree Celsius. So we can assume that the temperature during the night of 31 may 1893 would have been close to 0 degree Celsius - the freezing temperature.
Barrister Mohandas K Gandhi in South Africa:
Gandhi could not practice as a barrister in Rajkot or Porbander due to his shyness. However he had found alternate employment as a petition drafter and had started earning Rs 300 per month, which was a respectable amount those days. However Gandhi sought for a release and the offer for going to South Africa was just the right fit and hence he accepted it. Though it was not a fancy offer yet it promised a net earning of 105 Pound in a year and a respectable stay in that country. The offer was to act as an interpreter between the Guajarati litigant Shekh Abdullah stationed at Durban and his white advocates at Pretoria, where he fought a case involving 40,000 Pound.
Gandhi reached in Durban on 23 May 1893 and immediately started acclimatizing with the local situation. In no time he’d know the deep racial feeling that characterized the ruling British attitude towards the non-whites. The color prejudice and discrimination varied between the provinces.
Gandhiji’s travel from Durban to Pretoria-
Just after being a week in SA Gandhi started for his destination: Pretoria- capital of Transval. The journey between Durban to Pretoria would last from 31 May 1893 to the night of 4 June 1893. But for the mishap at Pietermaritzburg Gandhi should’ve reached on the evening of 3 June 1893 at Pretoria.
At 9 in the evening/ night of May 31, 1893, a passenger who embarked at Pietermaritzburg station, objected the presence of Gandhi in the first class compartment. He was ordered to move to the van compartment at the end of the train. Gandhi, who had a first-class ticket, refused. A police constable was called and he was forcibly removed from the train at Pietermaritzburg. His luggage was also cast off. Quivering with cold, stung with humiliation and with his usual share of shyness he walked into the waiting room. The railway authorities secured the luggage. Being afraid of further humiliation and also for being very shy Gandhi could not go and retrieve his overcoat and other warm clothes, which were lying inside his luggage carrier. The whole night he spent inside the lonely dark waiting room shaking- both with bone crushing cold and sole piercing humiliation.
The night of realization
This night would prove to be his night of realization. Quitting this foreign land and going back to India briefly entered his mind, which he would purge for a more valiant alternative- “Fight back”. The churning produced a new man. Next day morning, from the waiting room, emerged a saint. A man who would preach ‘hate the sin not the sinner’; and, in the same vein, he did not target the white men, for their hatred towards the colored, but targeted the real enemy- Hatred itself!
Half a century later …
After half a century of that incident the Mahatma would ultimately call upon the British to quit India – in 1942. The British would do his biding, the Mahatma’s belief on the sense of justice of the Whiteman would not be belied. The coal miners and average electorates of Britain would vote against the hero of WW-II and in favor of the apostle of peace! Recalcitrant Churchill- the last lion of the British Empire- would be defeated in the general elections! The subsequent peaceful surrender of power would become one of the greatest events of human civilization and the posterity would look upon Gandhi, his principles and his brand of politics with ever increasing hope for human survival and sustainable development. Scientific developments and profound advancements in nuclear technologies not withstanding the greatest scientist of the 2oth century - Albert Einstein -would proclaim that “Generations to come will scarce believe that such a one as [Gandhi] ever in flesh and blood walked upon this earth.”
SA & Pietermaritzburg Today:
As it was then, now also the message of Love, moderation and non-violence is very much the need for this fledgling nation- SA. It’s sad that about 20% people in SA are HIV positive. The country has earned the sobriquet “crime capital” with 500,000 rapes and large number of other crimes a year. Where, in a recent study, every third women asked replied to have been raped in the previous one year.
The policies of apartheid- racial discrimination- were buried in 1994 and the whites found the right man in Nelson Mandela to negotiate this switchover. Like Martin Luther King (junior), Nelson Mandela is considered to be an worthy follower of Gandhi and his contribution is visible in the relative peace and tranquility of this new nation.
A bronze statue of Gandhi stands in Church Street, in the city center of Pietermaritzburg, gently reminding the power of ONE.
The estimated current population of Pietermaritzburg is around 500,000 (including neighboring townships) and has one of the largest populations of Indian South Africans in South Africa. Pietermaritzburg is on a plateau with an elevation of 596 meters. Prior to the end of apartheid in 1994, Pietermaritzburg was the capital of Natal Province. The average lower temperature in Pietermaritzburg during June is 3 degree Celsius and the recorded lowest ever is -4 degree Celsius. So we can assume that the temperature during the night of 31 may 1893 would have been close to 0 degree Celsius - the freezing temperature.
Barrister Mohandas K Gandhi in South Africa:
Gandhi could not practice as a barrister in Rajkot or Porbander due to his shyness. However he had found alternate employment as a petition drafter and had started earning Rs 300 per month, which was a respectable amount those days. However Gandhi sought for a release and the offer for going to South Africa was just the right fit and hence he accepted it. Though it was not a fancy offer yet it promised a net earning of 105 Pound in a year and a respectable stay in that country. The offer was to act as an interpreter between the Guajarati litigant Shekh Abdullah stationed at Durban and his white advocates at Pretoria, where he fought a case involving 40,000 Pound.
Gandhi reached in Durban on 23 May 1893 and immediately started acclimatizing with the local situation. In no time he’d know the deep racial feeling that characterized the ruling British attitude towards the non-whites. The color prejudice and discrimination varied between the provinces.
Gandhiji’s travel from Durban to Pretoria-
Just after being a week in SA Gandhi started for his destination: Pretoria- capital of Transval. The journey between Durban to Pretoria would last from 31 May 1893 to the night of 4 June 1893. But for the mishap at Pietermaritzburg Gandhi should’ve reached on the evening of 3 June 1893 at Pretoria.
At 9 in the evening/ night of May 31, 1893, a passenger who embarked at Pietermaritzburg station, objected the presence of Gandhi in the first class compartment. He was ordered to move to the van compartment at the end of the train. Gandhi, who had a first-class ticket, refused. A police constable was called and he was forcibly removed from the train at Pietermaritzburg. His luggage was also cast off. Quivering with cold, stung with humiliation and with his usual share of shyness he walked into the waiting room. The railway authorities secured the luggage. Being afraid of further humiliation and also for being very shy Gandhi could not go and retrieve his overcoat and other warm clothes, which were lying inside his luggage carrier. The whole night he spent inside the lonely dark waiting room shaking- both with bone crushing cold and sole piercing humiliation.
The night of realization
This night would prove to be his night of realization. Quitting this foreign land and going back to India briefly entered his mind, which he would purge for a more valiant alternative- “Fight back”. The churning produced a new man. Next day morning, from the waiting room, emerged a saint. A man who would preach ‘hate the sin not the sinner’; and, in the same vein, he did not target the white men, for their hatred towards the colored, but targeted the real enemy- Hatred itself!
Half a century later …
After half a century of that incident the Mahatma would ultimately call upon the British to quit India – in 1942. The British would do his biding, the Mahatma’s belief on the sense of justice of the Whiteman would not be belied. The coal miners and average electorates of Britain would vote against the hero of WW-II and in favor of the apostle of peace! Recalcitrant Churchill- the last lion of the British Empire- would be defeated in the general elections! The subsequent peaceful surrender of power would become one of the greatest events of human civilization and the posterity would look upon Gandhi, his principles and his brand of politics with ever increasing hope for human survival and sustainable development. Scientific developments and profound advancements in nuclear technologies not withstanding the greatest scientist of the 2oth century - Albert Einstein -would proclaim that “Generations to come will scarce believe that such a one as [Gandhi] ever in flesh and blood walked upon this earth.”
SA & Pietermaritzburg Today:
As it was then, now also the message of Love, moderation and non-violence is very much the need for this fledgling nation- SA. It’s sad that about 20% people in SA are HIV positive. The country has earned the sobriquet “crime capital” with 500,000 rapes and large number of other crimes a year. Where, in a recent study, every third women asked replied to have been raped in the previous one year.
The policies of apartheid- racial discrimination- were buried in 1994 and the whites found the right man in Nelson Mandela to negotiate this switchover. Like Martin Luther King (junior), Nelson Mandela is considered to be an worthy follower of Gandhi and his contribution is visible in the relative peace and tranquility of this new nation.
A bronze statue of Gandhi stands in Church Street, in the city center of Pietermaritzburg, gently reminding the power of ONE.
Tuesday, September 20, 2011
My two cents on Ragging!
We can not stop ragging completely; yet, we can decisively reduce its occurrence and contain the menace.
My suggestions are as following:
The freshers should be empowered; a toll free number and then real follow up stringent actions would go a long way in curbing this menace than shedding crocodile tears. Are we ready for some real action or we just want to engage ourselves in endless discussions?
Well well perhaps you think I’ve got pumped up by watching Anna Hazare :) May be I am :)
Lets make an objective analysis:
Most of the student (be they seniors or juniors) are against Ragging. They do not need any further counseling. Like in any locality, all educational institutions have their shares of baddies. So the real culprits are the die-hard criminals! And their number is very few, yet owing to a dysfunctional justice delivery system they are ruling the roost.:(
Calling a criminal a criminal and then punishing him/her hard is the need of the hour, rest all can pass :) Now if criminals would not be punished then God save the country...
Just remember how people started wearing helmets and seat belts in Bhubaneswar! Certainly not due to counseling ONLY! And do not panic; you do not have to punish a multitude! Just the really criminal minded ones, who derive sadistic pleasure by torturing innocent kids, will need the stick and that too only in the first year. There after there would be a change in attitude and such occurrences would become very few and far between. So thereafter the collage/ police authorities would just have to remain vigilant and committed.
Case study: the brutal murder of Navarasu:
Navarasu- the only son of Dr P K Ponnusamy, a retired Vice-Chancellor of Madras University- was a student of 1st year MBBS in Annamalai University, Annamalai nagar, Tamil Nadu. John David was a student of second year MBBS in the same institution.
Navarasu was cut into pieces; parts of the body including torso were packed in two separate suitcases by the accused- John David- as he bore a grudge against the deceased who had refused to write the record note for the convict who subjected him to severe ragging and cut his body into two pieces. The unfortunate incident occurred on November 9, 1996.
The trial court sentenced John David to life imprisonment in 1998 but Madras High Court acquitted him in 2001 holding that the guilt of the accused had not been established! The accused was acquitted because the police booked the wrong person; the VC died in pain and suffering while receiving condolences! Though, immediately after the incident it was known- to almost the entire nation -that John David did this. It was widely reported. It was also reported that John David came from influential back ground!
Very recently- April’ 2011- the SC tried to remedy the situation by reversing the HC decision; but my question is: is this justice? What kind of a justice delivery system we have in our country? And if we’d not call people like John David, ‘criminal’ whom shall we? In parting, would it not be fitting if I say “A criminal by whatever name smells foul!”
Do you like my suggestions? NO; then what holds you from pouring yours :) Let’s discuss :)
My suggestions are as following:
The freshers should be empowered; a toll free number and then real follow up stringent actions would go a long way in curbing this menace than shedding crocodile tears. Are we ready for some real action or we just want to engage ourselves in endless discussions?
Well well perhaps you think I’ve got pumped up by watching Anna Hazare :) May be I am :)
Lets make an objective analysis:
Most of the student (be they seniors or juniors) are against Ragging. They do not need any further counseling. Like in any locality, all educational institutions have their shares of baddies. So the real culprits are the die-hard criminals! And their number is very few, yet owing to a dysfunctional justice delivery system they are ruling the roost.:(
Calling a criminal a criminal and then punishing him/her hard is the need of the hour, rest all can pass :) Now if criminals would not be punished then God save the country...
Just remember how people started wearing helmets and seat belts in Bhubaneswar! Certainly not due to counseling ONLY! And do not panic; you do not have to punish a multitude! Just the really criminal minded ones, who derive sadistic pleasure by torturing innocent kids, will need the stick and that too only in the first year. There after there would be a change in attitude and such occurrences would become very few and far between. So thereafter the collage/ police authorities would just have to remain vigilant and committed.
Case study: the brutal murder of Navarasu:
Navarasu- the only son of Dr P K Ponnusamy, a retired Vice-Chancellor of Madras University- was a student of 1st year MBBS in Annamalai University, Annamalai nagar, Tamil Nadu. John David was a student of second year MBBS in the same institution.
Navarasu was cut into pieces; parts of the body including torso were packed in two separate suitcases by the accused- John David- as he bore a grudge against the deceased who had refused to write the record note for the convict who subjected him to severe ragging and cut his body into two pieces. The unfortunate incident occurred on November 9, 1996.
The trial court sentenced John David to life imprisonment in 1998 but Madras High Court acquitted him in 2001 holding that the guilt of the accused had not been established! The accused was acquitted because the police booked the wrong person; the VC died in pain and suffering while receiving condolences! Though, immediately after the incident it was known- to almost the entire nation -that John David did this. It was widely reported. It was also reported that John David came from influential back ground!
Very recently- April’ 2011- the SC tried to remedy the situation by reversing the HC decision; but my question is: is this justice? What kind of a justice delivery system we have in our country? And if we’d not call people like John David, ‘criminal’ whom shall we? In parting, would it not be fitting if I say “A criminal by whatever name smells foul!”
Do you like my suggestions? NO; then what holds you from pouring yours :) Let’s discuss :)
Sunday, August 28, 2011
Let's convert this surge into a mature public response
Dear Friend,
Trust this mail finds you in good health.
The Anna Hazare campaign has awakened the general mass to the need for implementation of global best practice.
The all pervasive need is that of timely delivery of justice in all spheres and especially at the sub-ordinate jurisdictions. Citizen Charter, Judicial accountability, Electoral reforms, Transparent funding of political parties for electioneering are a few other such critical issues.
It’s an opportune time to demand the mitigating provisions like "Right to recall" and Right to reject". Let’s not forget the brass arrogance of the MPs during the Anna Hazare stand off and their portrayal of themselves as supreme and sovereign. Now if we've this clause of "Right to recall" we can show them what this supremacy is all about and who are supreme!
"Right to reject" will turn electoral Mathematics topsy-turvy. A crook who was getting elected by creating division and money power would be booed out by this safe guard.
Sure the Anna wave would sweep the length and breadth of the country like a cool and inspiring breeze yet the need of more purposeful and engaging debates and engagements can not be over emphasized.
As we -Chartered Accountants- claim ourselves to be ” Partners in nation building” ; seldom a more opportune time would come- in decades- to exercise our skill, care and competence in deepening these enabling virtues, first among ourselves and then among the general public.
How appropriate it would be if a dedicated committee/ TEAM is created to steer activities in the above lines! We can name it as “Lokpal” committee or in any other appropriate name. This committee would deliberate and then facilitate conduct of seminars, symposiums and work shops to disseminate knowledge regarding the above virtues and practices.
Now the ball is in your court!
Trust this mail finds you in good health.
The Anna Hazare campaign has awakened the general mass to the need for implementation of global best practice.
The all pervasive need is that of timely delivery of justice in all spheres and especially at the sub-ordinate jurisdictions. Citizen Charter, Judicial accountability, Electoral reforms, Transparent funding of political parties for electioneering are a few other such critical issues.
It’s an opportune time to demand the mitigating provisions like "Right to recall" and Right to reject". Let’s not forget the brass arrogance of the MPs during the Anna Hazare stand off and their portrayal of themselves as supreme and sovereign. Now if we've this clause of "Right to recall" we can show them what this supremacy is all about and who are supreme!
"Right to reject" will turn electoral Mathematics topsy-turvy. A crook who was getting elected by creating division and money power would be booed out by this safe guard.
Sure the Anna wave would sweep the length and breadth of the country like a cool and inspiring breeze yet the need of more purposeful and engaging debates and engagements can not be over emphasized.
As we -Chartered Accountants- claim ourselves to be ” Partners in nation building” ; seldom a more opportune time would come- in decades- to exercise our skill, care and competence in deepening these enabling virtues, first among ourselves and then among the general public.
How appropriate it would be if a dedicated committee/ TEAM is created to steer activities in the above lines! We can name it as “Lokpal” committee or in any other appropriate name. This committee would deliberate and then facilitate conduct of seminars, symposiums and work shops to disseminate knowledge regarding the above virtues and practices.
Now the ball is in your court!
Friday, August 12, 2011
“Aarakshan- a gem of a commercial Hindi movie!
“Aarakshan”- the much hyped movie about ‘ Reservation for socially backward class people’-was released yesterday- Friday, 12 August 2011. It’s a gem of a movie! IMHO- in my humble opinion-, it’s not against Dalits- if the dialogues are seen in the context. Neither has it portrayed the rational upper castes in a bad light; again - if the dialogues are seen in the context! Dear movie goers, Grow up! - It’s a commercial movie and it has to give a complete story in just 165 minutes. Besides pandering to the Indian fixation with music, it has to tie all loose ands and preferably end with a happy note; for, it must recover the investment made try to maximize the return to ensure enough green-backs for the next movie and that calls for a comedy! So, weighed with the inherent limitations of a movie of this nature, the director and script writer have done a wonderful balancing act.
It has an interesting star cast. Big B- Amitabh Bachchan- plays the role of Prabhakar Anand- the protagonist. Saif Ali Khan (Deepak Kumar), Deepika Padukone (Poorbi Anand), Manoj Bajpayee (Mithilesh Singh) and Prateik Babbar (Sushant) play their parts with perfection and IMHO this movie is going to be nominated in many categories, for the different annual film festival awards.
Though the movie starts with the ‘reservation’ conundrum, the other real issues- that it addresses- are; the dysfunctional judicial system- in an oblique way, and then ‘the’ real issue is about the menace of unprincipled touts in education sector or in one word- GREED. Though it may appear so, it is not against commercial coaching centers! It tries and succeeds to expose the unethical business in education and running of educational institutions. When Professors run coaching centers in violation of their terms of contracts with their employers- be it a private collage or a government collage; when unprincipled politicians control educational institutions and victimize virtuous professors like Prabhakar Anand; then the protagonist does not accept failure meekly but gives them a taste of his flair by doing a Gandhi!
In the process, quite objectively, he has shown the futility of violence and bland criticism to incite violence. In contrast, the nobility of non-violent constructive work- in the form of running free coaching centre- not only wrests back the dignity and peace of mind of the protagonist it also wins the real power –support of the masses- and facilitates a happy ending!
Delicately it shows how difficult it is to build an institution; whereas, it takes almost no time to destroy one. As violence is looked down upon the original institution is not harmed and this ‘Satyagraha’ paves the paths for creation of another world class institution- a free coaching center for the under-privileged/ academically weak students, which was the life-long dream of the protagonist. That’s the beauty of ‘Satyagraha’ and its time not just Indians but people world over need another lesson on this enabling values so that we would make our future better.
The message is aptly timed. When the entire country is waiting with anticipation and feels cheated on account of high profile scams and the young mass is restive to do something; it shows the right direction! Please remember; looking at the spreading hooliganism in England, the destructive minded people’ have been preaching violent outbursts, which is based on “HATRED”. Our own ‘Anna Hazare’ is going to wage a Satyagraha from 16 august – just 4 days after the release if this movie- at such a critical juncture the movie quite nicely portrays the futility of violence and subtlety of an approach based on “LOVE”.
As it happens, with a commercial flick, it has some strange coincidences and quite diplomatically the movie creates hype about “reservations”. All this happens in the first half, when the wily film maker hooks the audience with some catchy dialogues- both for and against ‘reservations’. Then- in the second half- the movie veers toward fighting greed and in the process unites almost the entire lot of young Turks- both who were for and against ‘reservation’- and the real target shifts to ‘human greed’ and the resultant unprincipled practices. The end is also made in a very agreeable manner and the audience leaves the theater with satisfaction!
The movie in one paragraph:
Despite having proven his merits when Prabhakar- the protagonist- is cast into ignominy, for standing up to principles, he faces the situation squarely and does not give into the lure of violence and destructive impulses. In the face of severe adversity, when the protagonist has to take a call –again- he takes the right call and decides in favor of constructive hard work in the face of very strong provocations. He leaves the star hotel and moves into the milling crowd! He burns the candle from both ends despite his advancing age and ill health and ultimately wins his sweet reward- his wards top the chart and he proves that he still has the Midas touch!
Heralds the coming of Refrom-03 into India:
With subtlety it shows why the affirmative actions are necessary in our country. Beyond that, it shows how inequality cast by the iron cast of casteism be removed. Though not many would have realized; Prakash Jha has highlighted exactly the same approach that Mahatma Gandhi finally settled for: inter-caste marriages!
Affirmative actions- in the form of reservations of jobs and seats in educational institutions etc- has made a small dent on social inequality, which was and still is so inhumane in India. Equity would get a big push when the Gandhian solution- inter-caste marriages- are practiced in a big way.
India has already experienced 2 stages of moral reforms, spread over last one hundred years. The first phase- 1910 to 1950- saw the emergence of the idea of ‘India’ based on the enabling principles of equity, democracy and tolerance. Mahatma Gandhi was the protagonist and chief architect of this phase. He literally bore the blows – both from the British and his chauvinistic countrymen- while painstakingly laying the foundation of this great nation. This period was so profound and rich that literally this phase has sustained the second, for the second phase has witnessed progressive decline in the values and at present it seems it has hit its nadir!
Reforms-02: spanned over the next six decades- say 1950 to 2010:
Besides the constant decline in values and progressive increase in corruption, the most significant reforms of this period are ‘reservations’ and economic empowerment of the common man. Owing to the shortcomings mentioned this period has not yielded the desired result. Nevertheless, this period has succeeded in creating a ‘critical mass’, which would be the bedrock for reforms-03.
Reforms-03:
The third wave of social and moral reforms would be still more profound and the harbingers of this reform would be the progeny of Deepak Kumars (the rising dalit boys) and Poorbi Anands (the idealistic daughters of upper caste social reformers).
The last words:
Hope I’ve explained how this movie scales up to a dizzy moral height and hence I consider it to be one which dwells in a higher pitch. Seldom a commercial movie tries to deliver a contrasting moral message, their main preoccupation being pandering to the soft corners of the majority of the audience. So, here also this movie scores brownie points.
Considering the pitch, performance and subtlety of the messages delivered, on first impulse, I would give the movie 9 out of ten. Well, is it not said that, second thoughts are better! So let me mull over it for some more time and revisit my rating. I may change my mind! And till then bye and wish you a happy week end with “Aarakshan”. :)
Box office results:
Though not a block-buster, this movie did reasonably well and after a month was rated to be a semi-hit in some reviews.
It has an interesting star cast. Big B- Amitabh Bachchan- plays the role of Prabhakar Anand- the protagonist. Saif Ali Khan (Deepak Kumar), Deepika Padukone (Poorbi Anand), Manoj Bajpayee (Mithilesh Singh) and Prateik Babbar (Sushant) play their parts with perfection and IMHO this movie is going to be nominated in many categories, for the different annual film festival awards.
Though the movie starts with the ‘reservation’ conundrum, the other real issues- that it addresses- are; the dysfunctional judicial system- in an oblique way, and then ‘the’ real issue is about the menace of unprincipled touts in education sector or in one word- GREED. Though it may appear so, it is not against commercial coaching centers! It tries and succeeds to expose the unethical business in education and running of educational institutions. When Professors run coaching centers in violation of their terms of contracts with their employers- be it a private collage or a government collage; when unprincipled politicians control educational institutions and victimize virtuous professors like Prabhakar Anand; then the protagonist does not accept failure meekly but gives them a taste of his flair by doing a Gandhi!
In the process, quite objectively, he has shown the futility of violence and bland criticism to incite violence. In contrast, the nobility of non-violent constructive work- in the form of running free coaching centre- not only wrests back the dignity and peace of mind of the protagonist it also wins the real power –support of the masses- and facilitates a happy ending!
Delicately it shows how difficult it is to build an institution; whereas, it takes almost no time to destroy one. As violence is looked down upon the original institution is not harmed and this ‘Satyagraha’ paves the paths for creation of another world class institution- a free coaching center for the under-privileged/ academically weak students, which was the life-long dream of the protagonist. That’s the beauty of ‘Satyagraha’ and its time not just Indians but people world over need another lesson on this enabling values so that we would make our future better.
The message is aptly timed. When the entire country is waiting with anticipation and feels cheated on account of high profile scams and the young mass is restive to do something; it shows the right direction! Please remember; looking at the spreading hooliganism in England, the destructive minded people’ have been preaching violent outbursts, which is based on “HATRED”. Our own ‘Anna Hazare’ is going to wage a Satyagraha from 16 august – just 4 days after the release if this movie- at such a critical juncture the movie quite nicely portrays the futility of violence and subtlety of an approach based on “LOVE”.
As it happens, with a commercial flick, it has some strange coincidences and quite diplomatically the movie creates hype about “reservations”. All this happens in the first half, when the wily film maker hooks the audience with some catchy dialogues- both for and against ‘reservations’. Then- in the second half- the movie veers toward fighting greed and in the process unites almost the entire lot of young Turks- both who were for and against ‘reservation’- and the real target shifts to ‘human greed’ and the resultant unprincipled practices. The end is also made in a very agreeable manner and the audience leaves the theater with satisfaction!
The movie in one paragraph:
Despite having proven his merits when Prabhakar- the protagonist- is cast into ignominy, for standing up to principles, he faces the situation squarely and does not give into the lure of violence and destructive impulses. In the face of severe adversity, when the protagonist has to take a call –again- he takes the right call and decides in favor of constructive hard work in the face of very strong provocations. He leaves the star hotel and moves into the milling crowd! He burns the candle from both ends despite his advancing age and ill health and ultimately wins his sweet reward- his wards top the chart and he proves that he still has the Midas touch!
Heralds the coming of Refrom-03 into India:
With subtlety it shows why the affirmative actions are necessary in our country. Beyond that, it shows how inequality cast by the iron cast of casteism be removed. Though not many would have realized; Prakash Jha has highlighted exactly the same approach that Mahatma Gandhi finally settled for: inter-caste marriages!
Affirmative actions- in the form of reservations of jobs and seats in educational institutions etc- has made a small dent on social inequality, which was and still is so inhumane in India. Equity would get a big push when the Gandhian solution- inter-caste marriages- are practiced in a big way.
India has already experienced 2 stages of moral reforms, spread over last one hundred years. The first phase- 1910 to 1950- saw the emergence of the idea of ‘India’ based on the enabling principles of equity, democracy and tolerance. Mahatma Gandhi was the protagonist and chief architect of this phase. He literally bore the blows – both from the British and his chauvinistic countrymen- while painstakingly laying the foundation of this great nation. This period was so profound and rich that literally this phase has sustained the second, for the second phase has witnessed progressive decline in the values and at present it seems it has hit its nadir!
Reforms-02: spanned over the next six decades- say 1950 to 2010:
Besides the constant decline in values and progressive increase in corruption, the most significant reforms of this period are ‘reservations’ and economic empowerment of the common man. Owing to the shortcomings mentioned this period has not yielded the desired result. Nevertheless, this period has succeeded in creating a ‘critical mass’, which would be the bedrock for reforms-03.
Reforms-03:
The third wave of social and moral reforms would be still more profound and the harbingers of this reform would be the progeny of Deepak Kumars (the rising dalit boys) and Poorbi Anands (the idealistic daughters of upper caste social reformers).
The last words:
Hope I’ve explained how this movie scales up to a dizzy moral height and hence I consider it to be one which dwells in a higher pitch. Seldom a commercial movie tries to deliver a contrasting moral message, their main preoccupation being pandering to the soft corners of the majority of the audience. So, here also this movie scores brownie points.
Considering the pitch, performance and subtlety of the messages delivered, on first impulse, I would give the movie 9 out of ten. Well, is it not said that, second thoughts are better! So let me mull over it for some more time and revisit my rating. I may change my mind! And till then bye and wish you a happy week end with “Aarakshan”. :)
Box office results:
Though not a block-buster, this movie did reasonably well and after a month was rated to be a semi-hit in some reviews.
Friday, July 15, 2011
Requiem for the Mumbai bomb blast victims and...
President Obama has aptly remembered the resilience of Mumbaikars in such trying times. Mumbai has experienced 6 such serial blasts in the recent past- 1993, 2002, 2003, 2006, 2008 and the recent one on July 13, 2011- and after every such wanton loss of life and property the City regained normalcy almost the following day or within a few days. So this July 13, 2011 carnage is no different and this is also borne with patience and courage. Well Barack Obama would be happy for Indian restraint and in turn would promise to make appropriate noise at the international forums to assuage Indian hurt feelings.
The Indian Prime Minister and Home minister would condemn this with strong words and would plead for restraint and calm, almost as a routine. Pakistan would wash its hands off any involvement of ISI and after being chided by the international media would seek proof for connection of this atrocity with its soil.
A section of the opposition parties would call for cancellation of further talks with the perpetrators- which by default is Pakistan- till firm measures are taken against the proven terrorist camps and extremists operating within Pakistan by Pak authorities. A section of the media would brand them as right wing fanatics and soon the discussion would veer in a different direction.
How a common man wishes- most of the victims are common men- that though we’ve lost out on so many occasions but we’d not lose the message and act steadfastly for a lasting solution. The following five pronged measure would address this issue holistically:
1. Engagement:
We are in a bind. We cannot stop talking with Pakistan. Yet nothing prevents us from engaging many more sympathetic sovereign ears. We must engage USA, without compromising with our sovereignty, and make them understand what we are going through. We’d also engage the general public of these states through media, after appropriately taking the national authorities of USA and EU into confidence. A professional approach would call for some lobby expenses and we’d not balk away from such expenses. In the long run these expenses would prove far more productive compared to expenses on aggressive military initiatives. The section of our populace, which has provided support to these terrorists, is also to be engaged on a regular basis. We must convince them to pronounce terrorists as terrorists and convince their followers to look down upon such acts and never to eulogize.
2. Community security:
All the while we cannot wash our hands by simply blaming a foreign state. The perpetrators of these crimes work within us and without support from ground zero these bombs cannot be planted or defused. Every Mumbaikar and for that matter every Indian is to be made aware about their duties regarding suspected terrorists and suspected terrorist acts. The culprits are to be nabbed before they succeed. When Rahul Gandhi says that the security agencies are successful on 99% of the occasions he says the truth yet we’ve to learn the lesson that we’ve to go beyond this and achieve the sixth sigma! Community policing is to be looked at with new perspectives and we’d try to emulate the perfection of “Mumbai Dabba walas” to devise a full proof system.
3. Public rebuff, speedy trial and exemplary punishment:
The real motivation for carrying out such crimes or being an accomplice comes from the sense of achievement and adulation that these misguided terrorists get from a section of the people. So our judicial delivery system has to be efficient to deal expeditiously with such terror suspects and terrorists. We do not need draconian Acts like TADA etc. What we need is speedy trial and quick justice delivery. Or else what would we do with the suspects nabbed? If the suspects are not punished for an infinitely long period – as is the case with Afzal Guru and Azmal Kasab- why would a common man risk his life in apprehending them? Besides, political misuse of Acts like TADA only creates more favorable ground for recruitment of terrorists. With all due respect to the judiciary; the present judicial system, which is crowded with so many cases, would not do. Like the envisaged ‘Lokpal’ -to stem corruption in high places- we need a separate organ which would administer criminal justice related to acts of terror.
4. Attack the breeding grounds:
Now we know where these operatives and sympathizers are bred. We can not do much for the ones operating beyond our borders. The ones operating in our own soil, we have to be more vigilant. We’ve to set out terms for the operation of these seminaries and having formulated those policies we’ve to firmly implement them. We must never fund such institutions where such anti-national activities are carried.
5. A strong political will
The leitmotif of the above approach is “Taking charge”; which translates into a strong political will in the context of a plural democracy. We need leaders who would take actions and would assume responsibility for their failures. People who are only known for blame games and recriminations would not be able to handle such situations squarely. So what does a common man do if he is saddled with a political baggage replete with indecisive leaders? Well; one, keep the fire on so that when the opportunities knock at the door one would seize them with open arms and two, WAIT for such opportunities and while waiting to spread the message to more and more number of concerned citizens so that gradually the balance would switch in his favor!
Last but not the least:
We must never stoop down to the level of those terrorists and think of retaliatory measures just to please our base instincts and which would come at the cost of our principles. Though the path of engagement may look an arduous one; actually that’s the best and looking at the plight of American’s- post Afghanistan and Iraq- we should not doubt Mahatma Gandhi when he said ‘the means must justify the ends’!.
The Indian Prime Minister and Home minister would condemn this with strong words and would plead for restraint and calm, almost as a routine. Pakistan would wash its hands off any involvement of ISI and after being chided by the international media would seek proof for connection of this atrocity with its soil.
A section of the opposition parties would call for cancellation of further talks with the perpetrators- which by default is Pakistan- till firm measures are taken against the proven terrorist camps and extremists operating within Pakistan by Pak authorities. A section of the media would brand them as right wing fanatics and soon the discussion would veer in a different direction.
How a common man wishes- most of the victims are common men- that though we’ve lost out on so many occasions but we’d not lose the message and act steadfastly for a lasting solution. The following five pronged measure would address this issue holistically:
1. Engagement:
We are in a bind. We cannot stop talking with Pakistan. Yet nothing prevents us from engaging many more sympathetic sovereign ears. We must engage USA, without compromising with our sovereignty, and make them understand what we are going through. We’d also engage the general public of these states through media, after appropriately taking the national authorities of USA and EU into confidence. A professional approach would call for some lobby expenses and we’d not balk away from such expenses. In the long run these expenses would prove far more productive compared to expenses on aggressive military initiatives. The section of our populace, which has provided support to these terrorists, is also to be engaged on a regular basis. We must convince them to pronounce terrorists as terrorists and convince their followers to look down upon such acts and never to eulogize.
2. Community security:
All the while we cannot wash our hands by simply blaming a foreign state. The perpetrators of these crimes work within us and without support from ground zero these bombs cannot be planted or defused. Every Mumbaikar and for that matter every Indian is to be made aware about their duties regarding suspected terrorists and suspected terrorist acts. The culprits are to be nabbed before they succeed. When Rahul Gandhi says that the security agencies are successful on 99% of the occasions he says the truth yet we’ve to learn the lesson that we’ve to go beyond this and achieve the sixth sigma! Community policing is to be looked at with new perspectives and we’d try to emulate the perfection of “Mumbai Dabba walas” to devise a full proof system.
3. Public rebuff, speedy trial and exemplary punishment:
The real motivation for carrying out such crimes or being an accomplice comes from the sense of achievement and adulation that these misguided terrorists get from a section of the people. So our judicial delivery system has to be efficient to deal expeditiously with such terror suspects and terrorists. We do not need draconian Acts like TADA etc. What we need is speedy trial and quick justice delivery. Or else what would we do with the suspects nabbed? If the suspects are not punished for an infinitely long period – as is the case with Afzal Guru and Azmal Kasab- why would a common man risk his life in apprehending them? Besides, political misuse of Acts like TADA only creates more favorable ground for recruitment of terrorists. With all due respect to the judiciary; the present judicial system, which is crowded with so many cases, would not do. Like the envisaged ‘Lokpal’ -to stem corruption in high places- we need a separate organ which would administer criminal justice related to acts of terror.
4. Attack the breeding grounds:
Now we know where these operatives and sympathizers are bred. We can not do much for the ones operating beyond our borders. The ones operating in our own soil, we have to be more vigilant. We’ve to set out terms for the operation of these seminaries and having formulated those policies we’ve to firmly implement them. We must never fund such institutions where such anti-national activities are carried.
5. A strong political will
The leitmotif of the above approach is “Taking charge”; which translates into a strong political will in the context of a plural democracy. We need leaders who would take actions and would assume responsibility for their failures. People who are only known for blame games and recriminations would not be able to handle such situations squarely. So what does a common man do if he is saddled with a political baggage replete with indecisive leaders? Well; one, keep the fire on so that when the opportunities knock at the door one would seize them with open arms and two, WAIT for such opportunities and while waiting to spread the message to more and more number of concerned citizens so that gradually the balance would switch in his favor!
Last but not the least:
We must never stoop down to the level of those terrorists and think of retaliatory measures just to please our base instincts and which would come at the cost of our principles. Though the path of engagement may look an arduous one; actually that’s the best and looking at the plight of American’s- post Afghanistan and Iraq- we should not doubt Mahatma Gandhi when he said ‘the means must justify the ends’!.
Sunday, July 3, 2011
Rath yatra eve thoughts:
Electricity has made an entry into the Lord Jagannath temple and so have CC TV cameras. Steam jet cleaning - from modern gadgets- is planned for cleaning the sanctum sanctorum, which becomes slippery and shabby after the Prasad is presented before the lord. A multi story glass, steel and cement structure is about to replace the old and ugly Anand Bazar. Scores of people have been recruited with assured salary as guards and that has substantially improved the security of tourists inside the temple. The gross torture and abuse of outstation tourists has come down owing to these administrative steps. The king plays only a symbolic role and the real power over the temple vests in the hands of IAS, IPS,OAS and other government servants.
No longer people die – inhumanly- crushed under the wheels of the chariots, the police ensures safety of the pilgrims. Gone are the days when most people trekked the entire distance by their bare feet; most of the pilgrims –now a days- visit the temple city by vehicles powered by fossil fuel. No longer people die in hordes during Rath yatra due to the unsanitary condition and dysentery and diarrhea are no longer killer diseases. So “Swagra Dwara” is no longer a dreaded mention-for pilgrims and their relations- it has rather become an industrial corpse burning centre, which is sought after by people dying in old age.
There are so many changes in the rituals and religious practices; can we not plead for one more change to protect our environment? How if we stopped felling so many trees- every yea- for new chariots and instead used steel wheels, axles and beams for construction of these chariots? The scientific advancements would help construction of more gorgeous chariots and we can preserve the outward look for aesthetic purpose.
Remember, it’s not about only those hree chariots in Puri; religious zeal has pervaded into our villages and there also they go for Rath yatras. One saving grace- owing to scarcity of funds and time of the devotees- in other places they reuse old chariots. Yet more and more villages want their own Raths, every passing year, and that calls for felling thousands of trees. So if Puri sets an example others would follow and that would save those precious trees and forest, whose cover has any way gone down below the acceptable level. Its pertinent to mention here that for a balanced growth we need at least 30% forest cover and at present we have only 20% and that is also dwindling day by day.
Do we not call him ‘Jagannath’- the lord of the universe? So, how can we exclude trees from his protection?
No longer people die – inhumanly- crushed under the wheels of the chariots, the police ensures safety of the pilgrims. Gone are the days when most people trekked the entire distance by their bare feet; most of the pilgrims –now a days- visit the temple city by vehicles powered by fossil fuel. No longer people die in hordes during Rath yatra due to the unsanitary condition and dysentery and diarrhea are no longer killer diseases. So “Swagra Dwara” is no longer a dreaded mention-for pilgrims and their relations- it has rather become an industrial corpse burning centre, which is sought after by people dying in old age.
There are so many changes in the rituals and religious practices; can we not plead for one more change to protect our environment? How if we stopped felling so many trees- every yea- for new chariots and instead used steel wheels, axles and beams for construction of these chariots? The scientific advancements would help construction of more gorgeous chariots and we can preserve the outward look for aesthetic purpose.
Remember, it’s not about only those hree chariots in Puri; religious zeal has pervaded into our villages and there also they go for Rath yatras. One saving grace- owing to scarcity of funds and time of the devotees- in other places they reuse old chariots. Yet more and more villages want their own Raths, every passing year, and that calls for felling thousands of trees. So if Puri sets an example others would follow and that would save those precious trees and forest, whose cover has any way gone down below the acceptable level. Its pertinent to mention here that for a balanced growth we need at least 30% forest cover and at present we have only 20% and that is also dwindling day by day.
Do we not call him ‘Jagannath’- the lord of the universe? So, how can we exclude trees from his protection?
Wednesday, June 8, 2011
IT assessment of Bofors kickbacks
Summary of ITAT order - on 31 December 2010 (in relation to Bofors kickbacks)
Harsh W. Chadha Vs. DDIT (ITA 3088 to 3098 & 3107/D/05)
Historical perspective:
On 16-4-1987, over a year after the contract with AB Bofors was executed by Govt. of India for supply of defense equipment, a Radio Broadcasting channel “Dagens Eko” of the Swedish Radio, came out with a sensitive news item. It unfolded that Bofors had violated the Swedish Law by managing to obtain this Gun Supply contract from the Govt. of India, amongst other things, due to the fact that local agents had been paid large amounts in “bribes”.
The entire nation was shocked and it continued to be discussed in the media. The integrity of Mr. clean- late Mr. Rajiv Gandhi, the then PM who also held the defense portfolio- was at stake. The Govt. of India- GOI- made a formal request to the Government of Sweden for an investigation into the allegations on 21-4-1987.
The Swedish Government accepted the request of the Govt. of India and ordered an enquiry by its organization, the Swedish National Audit Bureau (SNAB). The SNAB submitted its report to the Swedish Government on June 01, 1987, which was forwarded on June 04, 1987 to the Govt. of India. SNAB report, inter alia, made the following disclosures:- “that an agreement exists between AB Bofors and ---------(omitted) concerning the settlement of commission subsequently to the FH-77 deal, and; that considerable amounts have been paid subsequently to, among others, AB Bofors' previous agent in India”.
SNAB thus confirmed that these payments to the tune of SEK 170- 250 million were indeed made by Bofors in connection with this Defense contract to its previous agent in India, but the names of the recipients were not mentioned.
V. P. Singh succeeded Rajiv Gandhi as the defense minister after the scam broke out and ruffled quite a few feathers by his proactive investigation of the scam. He was promptly dismissed from the ministry. On 17-July-1987 he announced his resignation from Congress.
12.08.1987 : A JPC was set up to investigate the Bofors scam
28.08.1987 : JPC – led by a Congress leader and stuffed mostly with Congress members- submitted its report and gave a clean chit to all accused including Shri W N Chadha.
IMHO the above – gross failure in discharging its responsibility by a JPC- makes a mockery of justice delivery system and parliamentary democracy.
However the cases in the civil courts are still continuing and making noises now and then.
ITAT has again stirred the Pandora’s Box!
Very recently- on 31 December 2010- the ITAT held that there is enough evidence to lead to the conclusion that the appellant Sh. W.N. Chadha, was recipient of Rs. 52,60,34,469/- as commission, through its front company namely M/s Svenska Inc.Panama. and hence upheld the Income tax AO’s decision to add the above amount with the returned income of the assessee for AYs 1987-88 and 1988-89.
Notional Interest earned on the shortfall reported:
However addition of notional INTEREST – as an additional income- on the above impugned amount, with the returned income was not allowed. ITAT held that the AO could not substantiate his claim regarding adding notional interests @ 5%, as similar material to indicate that the assessee either made any investment or earned any interest could not be given.
Interest u/s 234:
However the above relief regarding non-addition of interest is not to be confused with interest chargeable u/s 234B and 234C. These interests would be chargeable, as these are consequential in nature.
WHAT IS THE SNAB REPORT?
The SNAB Report is an official document, prepared by the Swedish Govt. at the request of Govt. of India. It was submitted through the Indian Ambassador to Sweden by official channel. Its functions are broadly similar to comptroller & Auditor General of India. The JPC has accepted it as an official document. Material made available by this channel is obtained by due process of law. The report has been furnished by the Swedish Govt. through diplomatic channels at the request of the Indian Govt. Both the countries are sovereign nations and it is wholly inappropriate on the part of asssessee to insist for originals. When the SNAB Report is reproduced in the JPC proceedings which are public documents, the SNAB report also becomes a public document. The assessee, while appearing before the JPC, neither demanded the originals nor doubted the authenticity of its contents.
The SNAB report has further quoted that “President of M/s AB Bofors Per Ove Morberg, stated that the principal beneficiary is an Indian, who has been an agent for Bofors for ten to fifteen years”. There is nothing available to suggest that the President of Bofors, while making this disclosure to the Audit Organization of his own country, would tell a lie. We are unable to comprehend a situation where Mr. Morberg whose work was to protect the interest of Bofors in India, would make a statement incriminating an Indian, if such an Indian was not involved. In the entire record, except the name of Mr Chadha, the name of no other Indian occurs and the SNAB report refers only to the old Indian agent of Bofors.
HOWEVER the fact that the SNAB omitted the names- names were not disclosed on the pretext of secrecy- became the main stay of the accused. Big surprise, knowing very well that AB Bofors would not cooperate; they- Bofors- harped upon the same rationale, that names could not be disclosed on the pretext of secrecy- AB Bofors was asked to reveal the names. AB Bofors declined to do so. What is more, JPC gave all accused clean chits, notwithstanding the fact that other corroborating evidences reasonably filled in the gaps.
After 23 years, ITAT differed from the findings of the JPC and they rubbished the assessee’s contention that the SNAB report is only a press statement and does not have evidentiary value. They held: “In our view, it is not available to the assessee to question SNAB report in income tax proceedings.
What would happen in the High Court?
Tribunal proceedings are quasi judicial in nature so they can admit “evidence”, which may consist of materials which would be wholly inadmissible in a court of law.
A compliant bench would go with the JPC findings:
The JPC has already created sufficient room for some doubt. Unfortunately no longer the judiciary is completely clean and it has come out in the open that the integrity of the judiciary has been breached. With all due respect, it can be surmised that, as it could be done with a JPC, a bench of the highest court also can be compromised!
GOI should engage the Swiss govt:
Very recently USA forced the Swiss authorities to reveal the names of tax offenders of their country who had stashed their ill gotten money in Switzerland. Swiss authorities have also showed increased concern for international money laundering and if appropriately engaged would cooperate. Besides the secrecy laws permit revelations after a certain period.
Wikileakes:
They claim that they have the list of names. Would it not be appropriate to open an alternate channel with them and after receiving the names seeking confirmation from the Swiss authorities?
If we do nothing then:
Efflux of time and complying politicians have already made the case weak. So, unless GOI receives further clarifications regarding the names of the beneficiaries, from the Swiss government, it appears the case would be decided in favor of the accused assessee. It would make no difference to Mr. W N Chadda – the accused- as he is no more alive. However, that would be sad news for a common man. In that case, even the gains made illegally can not be recovered from his legal heirs.
Source: http://www.hindu.com/nic/itat_order_on_bofor.pdf
Harsh W. Chadha Vs. DDIT (ITA 3088 to 3098 & 3107/D/05)
Historical perspective:
On 16-4-1987, over a year after the contract with AB Bofors was executed by Govt. of India for supply of defense equipment, a Radio Broadcasting channel “Dagens Eko” of the Swedish Radio, came out with a sensitive news item. It unfolded that Bofors had violated the Swedish Law by managing to obtain this Gun Supply contract from the Govt. of India, amongst other things, due to the fact that local agents had been paid large amounts in “bribes”.
The entire nation was shocked and it continued to be discussed in the media. The integrity of Mr. clean- late Mr. Rajiv Gandhi, the then PM who also held the defense portfolio- was at stake. The Govt. of India- GOI- made a formal request to the Government of Sweden for an investigation into the allegations on 21-4-1987.
The Swedish Government accepted the request of the Govt. of India and ordered an enquiry by its organization, the Swedish National Audit Bureau (SNAB). The SNAB submitted its report to the Swedish Government on June 01, 1987, which was forwarded on June 04, 1987 to the Govt. of India. SNAB report, inter alia, made the following disclosures:- “that an agreement exists between AB Bofors and ---------(omitted) concerning the settlement of commission subsequently to the FH-77 deal, and; that considerable amounts have been paid subsequently to, among others, AB Bofors' previous agent in India”.
SNAB thus confirmed that these payments to the tune of SEK 170- 250 million were indeed made by Bofors in connection with this Defense contract to its previous agent in India, but the names of the recipients were not mentioned.
V. P. Singh succeeded Rajiv Gandhi as the defense minister after the scam broke out and ruffled quite a few feathers by his proactive investigation of the scam. He was promptly dismissed from the ministry. On 17-July-1987 he announced his resignation from Congress.
12.08.1987 : A JPC was set up to investigate the Bofors scam
28.08.1987 : JPC – led by a Congress leader and stuffed mostly with Congress members- submitted its report and gave a clean chit to all accused including Shri W N Chadha.
IMHO the above – gross failure in discharging its responsibility by a JPC- makes a mockery of justice delivery system and parliamentary democracy.
However the cases in the civil courts are still continuing and making noises now and then.
ITAT has again stirred the Pandora’s Box!
Very recently- on 31 December 2010- the ITAT held that there is enough evidence to lead to the conclusion that the appellant Sh. W.N. Chadha, was recipient of Rs. 52,60,34,469/- as commission, through its front company namely M/s Svenska Inc.Panama. and hence upheld the Income tax AO’s decision to add the above amount with the returned income of the assessee for AYs 1987-88 and 1988-89.
Notional Interest earned on the shortfall reported:
However addition of notional INTEREST – as an additional income- on the above impugned amount, with the returned income was not allowed. ITAT held that the AO could not substantiate his claim regarding adding notional interests @ 5%, as similar material to indicate that the assessee either made any investment or earned any interest could not be given.
Interest u/s 234:
However the above relief regarding non-addition of interest is not to be confused with interest chargeable u/s 234B and 234C. These interests would be chargeable, as these are consequential in nature.
WHAT IS THE SNAB REPORT?
The SNAB Report is an official document, prepared by the Swedish Govt. at the request of Govt. of India. It was submitted through the Indian Ambassador to Sweden by official channel. Its functions are broadly similar to comptroller & Auditor General of India. The JPC has accepted it as an official document. Material made available by this channel is obtained by due process of law. The report has been furnished by the Swedish Govt. through diplomatic channels at the request of the Indian Govt. Both the countries are sovereign nations and it is wholly inappropriate on the part of asssessee to insist for originals. When the SNAB Report is reproduced in the JPC proceedings which are public documents, the SNAB report also becomes a public document. The assessee, while appearing before the JPC, neither demanded the originals nor doubted the authenticity of its contents.
The SNAB report has further quoted that “President of M/s AB Bofors Per Ove Morberg, stated that the principal beneficiary is an Indian, who has been an agent for Bofors for ten to fifteen years”. There is nothing available to suggest that the President of Bofors, while making this disclosure to the Audit Organization of his own country, would tell a lie. We are unable to comprehend a situation where Mr. Morberg whose work was to protect the interest of Bofors in India, would make a statement incriminating an Indian, if such an Indian was not involved. In the entire record, except the name of Mr Chadha, the name of no other Indian occurs and the SNAB report refers only to the old Indian agent of Bofors.
HOWEVER the fact that the SNAB omitted the names- names were not disclosed on the pretext of secrecy- became the main stay of the accused. Big surprise, knowing very well that AB Bofors would not cooperate; they- Bofors- harped upon the same rationale, that names could not be disclosed on the pretext of secrecy- AB Bofors was asked to reveal the names. AB Bofors declined to do so. What is more, JPC gave all accused clean chits, notwithstanding the fact that other corroborating evidences reasonably filled in the gaps.
After 23 years, ITAT differed from the findings of the JPC and they rubbished the assessee’s contention that the SNAB report is only a press statement and does not have evidentiary value. They held: “In our view, it is not available to the assessee to question SNAB report in income tax proceedings.
What would happen in the High Court?
Tribunal proceedings are quasi judicial in nature so they can admit “evidence”, which may consist of materials which would be wholly inadmissible in a court of law.
A compliant bench would go with the JPC findings:
The JPC has already created sufficient room for some doubt. Unfortunately no longer the judiciary is completely clean and it has come out in the open that the integrity of the judiciary has been breached. With all due respect, it can be surmised that, as it could be done with a JPC, a bench of the highest court also can be compromised!
GOI should engage the Swiss govt:
Very recently USA forced the Swiss authorities to reveal the names of tax offenders of their country who had stashed their ill gotten money in Switzerland. Swiss authorities have also showed increased concern for international money laundering and if appropriately engaged would cooperate. Besides the secrecy laws permit revelations after a certain period.
Wikileakes:
They claim that they have the list of names. Would it not be appropriate to open an alternate channel with them and after receiving the names seeking confirmation from the Swiss authorities?
If we do nothing then:
Efflux of time and complying politicians have already made the case weak. So, unless GOI receives further clarifications regarding the names of the beneficiaries, from the Swiss government, it appears the case would be decided in favor of the accused assessee. It would make no difference to Mr. W N Chadda – the accused- as he is no more alive. However, that would be sad news for a common man. In that case, even the gains made illegally can not be recovered from his legal heirs.
Source: http://www.hindu.com/nic/itat_order_on_bofor.pdf
Odi Baba!
Some people have accused Baba Ramdev of being a sexist homophobe. Let's examine the truth behind it.
What is ‘Sexism’? : An ideology that; looks down upon women, advocates discrimination based on gender and promotes stereotyping of social roles based on gender.
What is Homophobia? : An approach based on fear of or contempt for lesbians and gay men.
On 2 July 2009 Delhi High Court, in a landmark verdict, legalized gay sex among consenting adults. Under Section 377 of Indian Penal Code such activities are unlawful and hence punishable with punishment up to life imprisonment.
(on 11 December 2013- 11/12/13!- a two member bench of Justice Ganguly and Sanghvi overturned this decision and LGBT activists claim it would down as a sad day in the annals of Indian democracy!)
The division bench of Justice A.P. Shah and Justice S. Muralidhar in its 105-page order declare that: Section 377 of the IPC, insofar as it criminalizes consensual sexual acts of adults in private, violates Article 21 [Right to Protection of Life and Personal Liberty], Article14 [Right to Equality before Law] and Article15 [Prohibition of Discrimination on Grounds of Religion, Race, Caste, Sex or Place of Birth] of the Constitution.
They held that sexual orientation is a ground analogous to sex, and that discrimination on sexual orientation is not permitted under Article 15.
Historical perspective (of article 377 of IPC)
IPC was drafted by Lord Thomas Babington Macaulay in 1830s and reflects a mind set, which was prevalent in that era. Then homosexuality and lesbian activities were considered criminal as they thought such tendencies are acquired by one’s own volition.
Modern discoveries and scientific progress coupled with the rise of humanitarian values, which has freed human beings from the diktats of the illogicalities of religionists, has established that there is no criminality involved in such behaviors. As pure heterosexuals enjoy their brand of physical intimacy pure lesbians and gays enjoy theirs. As a pure heterosexual can not enjoy gay sex so would pure lesbians and gays distaste heterosexual activates. As this fact was established beyond doubt the learned judge, who delivered the landmark judgment, felt compelled to bring justice to a sexual minority, which is being persecuted for generations for no fault of theirs.
Now from being a religious and moral issue it has became an issue involving equity and hence article 377 of IPC came in conflict with the constitutional guarantee that all the subjects would be treated equally.
Rationality and religions are often poles apart. So, quite naturally religious leaders, who thrive by preaching fundamentalism, opposed this accommodation and they upped their ante! How could Baba Ramdev be any different! He repeated the allegation- that religious moralists have leveled through generations- that homosexuality is a DISEASE!
For a more detailed discussion about the above please visit:
http://www.hindu.com/thehindu/holnus/002200907072033.htm
http://www.hindu.com/2009/07/03/stories/2009070358010100.htm
Now from a humanist’s stand point Baba Ramdev’s obscurantist attitude does merit him the tag ‘sexist homophobe’. Perhaps that’s the rationale behind Sonom Kapoor’s tweet; where, she referred to Baba Ramdev as a sexist homophobe.
Baba Ramdev and his organisation selling Ayurvedic preparations are habitual offenders in evading their VAT dues:
The Yaga guru's foundation is a habitual offender in evading sales tax (VAT) as reported in Tehlka. It's unfortunate that only after the last year's fiasco they'd the gall to proceed against him, for the sales tax cases against the organisation are pretty old.
Source:
http://www.tehelka.com/story_main52.asp?filename=Ws190312Black_money.asp
Getting a cue the Income Tax department also has rolled in its sleeves to flex muscle with him.
17 May 2012:
TOI reports that the exemptions available under section 11 of IT Act -1961 to Baba's trusts have been rescinded and a hefty Rs 58 Crore demand notice has been sent. The unfolding of the mess surrounding the Baba is turning out to be a classic case of the pot calling the kettle black!
http://timesofindia.indiatimes.com/india/Tax-notice-slapped-on-Ramdevs-trusts/articleshow/13216681.cms
While doing emotional marketing the Baba got emotional:
The Yoga Guru mostly does emotional marketing. After making gullible people emotional for quite sometime and all the while dishing out unfounded claims on a routine basis he also caught the contagion and became royally emotional for the country!
Now he started a tirade to recover the illegal mullah stashed in Swiss Banks.All was well and he was becoming more and more important. Sri Pranab Mukherjee- the senior most leader of Congress- bent backwards and pleaded on behalf of UPA- II to the Baba. But then the Baba over did his acts of threatening the government and Kapil Sibbal and Co planned to get tough.
While being evicted from the Ramlila ground- in New Delhi- the tricky Baba went on to don a woman's clothing to hoodwink the cops! On retrospect the Baba would be ruing his theatrics; but the damage had been done! He did that to further whip the passions of the general public but the back lash proved much stronger than the little sympathy he received from his coterie. The Baba was undone!
In the end this fiasco- where he gave a call to arms while pretending to be a votary of non-violent protest-proved costly and since then the mercurial self styled nationalist sadhu has failed to recover the lost ground and it seems his days of extraordinary public followings are over!
13 May 2012: The new chapter- Wooing Dalits cutting across the religious line:
The recent support for Dalit Christians and Muslims would certainly endear the controversial Baba to a larger section of people. Yet there is also a risk, he may lose his core constituency- militant Hindus- in the process.
On the issue of Black money, being a habitual tax evader, it's increasingly becoming untenable for the Baba to mount that moral high ground; let's see how honest he is in his new found support for the poor dalits.
Source: http://timesofindia.indiatimes.com/india/Ramdev-backs-quota-for-Muslims-and-Christians-seeks-their-support-in-graft-fight/articleshow/13115642.cms
What is your take on all these issues?
What is ‘Sexism’? : An ideology that; looks down upon women, advocates discrimination based on gender and promotes stereotyping of social roles based on gender.
What is Homophobia? : An approach based on fear of or contempt for lesbians and gay men.
On 2 July 2009 Delhi High Court, in a landmark verdict, legalized gay sex among consenting adults. Under Section 377 of Indian Penal Code such activities are unlawful and hence punishable with punishment up to life imprisonment.
(on 11 December 2013- 11/12/13!- a two member bench of Justice Ganguly and Sanghvi overturned this decision and LGBT activists claim it would down as a sad day in the annals of Indian democracy!)
The division bench of Justice A.P. Shah and Justice S. Muralidhar in its 105-page order declare that: Section 377 of the IPC, insofar as it criminalizes consensual sexual acts of adults in private, violates Article 21 [Right to Protection of Life and Personal Liberty], Article14 [Right to Equality before Law] and Article15 [Prohibition of Discrimination on Grounds of Religion, Race, Caste, Sex or Place of Birth] of the Constitution.
They held that sexual orientation is a ground analogous to sex, and that discrimination on sexual orientation is not permitted under Article 15.
Historical perspective (of article 377 of IPC)
IPC was drafted by Lord Thomas Babington Macaulay in 1830s and reflects a mind set, which was prevalent in that era. Then homosexuality and lesbian activities were considered criminal as they thought such tendencies are acquired by one’s own volition.
Modern discoveries and scientific progress coupled with the rise of humanitarian values, which has freed human beings from the diktats of the illogicalities of religionists, has established that there is no criminality involved in such behaviors. As pure heterosexuals enjoy their brand of physical intimacy pure lesbians and gays enjoy theirs. As a pure heterosexual can not enjoy gay sex so would pure lesbians and gays distaste heterosexual activates. As this fact was established beyond doubt the learned judge, who delivered the landmark judgment, felt compelled to bring justice to a sexual minority, which is being persecuted for generations for no fault of theirs.
Now from being a religious and moral issue it has became an issue involving equity and hence article 377 of IPC came in conflict with the constitutional guarantee that all the subjects would be treated equally.
Rationality and religions are often poles apart. So, quite naturally religious leaders, who thrive by preaching fundamentalism, opposed this accommodation and they upped their ante! How could Baba Ramdev be any different! He repeated the allegation- that religious moralists have leveled through generations- that homosexuality is a DISEASE!
For a more detailed discussion about the above please visit:
http://www.hindu.com/thehindu/holnus/002200907072033.htm
http://www.hindu.com/2009/07/03/stories/2009070358010100.htm
Now from a humanist’s stand point Baba Ramdev’s obscurantist attitude does merit him the tag ‘sexist homophobe’. Perhaps that’s the rationale behind Sonom Kapoor’s tweet; where, she referred to Baba Ramdev as a sexist homophobe.
Baba Ramdev and his organisation selling Ayurvedic preparations are habitual offenders in evading their VAT dues:
The Yaga guru's foundation is a habitual offender in evading sales tax (VAT) as reported in Tehlka. It's unfortunate that only after the last year's fiasco they'd the gall to proceed against him, for the sales tax cases against the organisation are pretty old.
Source:
http://www.tehelka.com/story_main52.asp?filename=Ws190312Black_money.asp
Getting a cue the Income Tax department also has rolled in its sleeves to flex muscle with him.
17 May 2012:
TOI reports that the exemptions available under section 11 of IT Act -1961 to Baba's trusts have been rescinded and a hefty Rs 58 Crore demand notice has been sent. The unfolding of the mess surrounding the Baba is turning out to be a classic case of the pot calling the kettle black!
http://timesofindia.indiatimes.com/india/Tax-notice-slapped-on-Ramdevs-trusts/articleshow/13216681.cms
While doing emotional marketing the Baba got emotional:
The Yoga Guru mostly does emotional marketing. After making gullible people emotional for quite sometime and all the while dishing out unfounded claims on a routine basis he also caught the contagion and became royally emotional for the country!
Now he started a tirade to recover the illegal mullah stashed in Swiss Banks.All was well and he was becoming more and more important. Sri Pranab Mukherjee- the senior most leader of Congress- bent backwards and pleaded on behalf of UPA- II to the Baba. But then the Baba over did his acts of threatening the government and Kapil Sibbal and Co planned to get tough.
While being evicted from the Ramlila ground- in New Delhi- the tricky Baba went on to don a woman's clothing to hoodwink the cops! On retrospect the Baba would be ruing his theatrics; but the damage had been done! He did that to further whip the passions of the general public but the back lash proved much stronger than the little sympathy he received from his coterie. The Baba was undone!
In the end this fiasco- where he gave a call to arms while pretending to be a votary of non-violent protest-proved costly and since then the mercurial self styled nationalist sadhu has failed to recover the lost ground and it seems his days of extraordinary public followings are over!
13 May 2012: The new chapter- Wooing Dalits cutting across the religious line:
The recent support for Dalit Christians and Muslims would certainly endear the controversial Baba to a larger section of people. Yet there is also a risk, he may lose his core constituency- militant Hindus- in the process.
On the issue of Black money, being a habitual tax evader, it's increasingly becoming untenable for the Baba to mount that moral high ground; let's see how honest he is in his new found support for the poor dalits.
Source: http://timesofindia.indiatimes.com/india/Ramdev-backs-quota-for-Muslims-and-Christians-seeks-their-support-in-graft-fight/articleshow/13115642.cms
What is your take on all these issues?
Tuesday, May 24, 2011
Deduction under section 80RR to 'Actor' Tendulkar!
Why such a hue and cry for allowing deduction under section 80RR to 'Actor' Tendulkar?
CA. Siddharth Ranjan
Source: http://articles.timesofindia.indiatimes.com/2011-05-23/off-the-field/29573690_1_deductions-cricketer-taxable-income
MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modeling in advertisements.
The two-member tribunal, which gave its order on May 20, 2011, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials.
Asha Vijayaraghavan, judicial member of the tribunal, and RK Panda, accountant member, gave the ruling on four appeals filed by the batting maestro against the verdict of chief commissioner of Income Tax (Appeals) for assessment years 2001-02 to 2004-2005.
Facts of the case:
Tendulkar had claimed deduction u/s 80 RR amounting to Rs 2,08,59,707 on account of receipt of Rs 5,92,31,211. He claimed deductions under Section 80 RR of I-T Act, on the ground that he was an 'actor' while appearing in advertisements.
The CIT (A) held that he was not an actor as cricket was his principal profession and disallowed this deduction.
Tendulkar contested this and submitted that the CIT (A) had wrongly held that he was not an actor as cricket was his principal profession.
The tribunal saw the reasonableness behind the claim of the batting maestro and opined:
"No doubt, being a successful cricketer, it has added to his brand value as a model. But the fact remains that the assessee has to use his own skills, imagination and creativity. Every person, or for that matter every sportsman, do not possess that degree of talent or skill or creativity and face the lights and camera etc."
"We are of the considered opinion that the income received by the assessee from modelling and appearing in TV commercials and similar activities can be termed as income derived from the profession of an artist."
"We accordingly hold that the amount of Rs 5,92,31,211 received by the assessee amounts to income derived by the assessee in the exercise of his profession as an artist and therefore entitled to deduction u/s 80RR of the Act."
The tribunal noted that Tendulkar had received an amount of Rs 19,92,27,085 as gross receipts from sports sponsorship and advertisements, which included an amount of Rs 5,92,31,211 received in convertible foreign exchange from ESPN Star Sports, Pepsico Inc and VISA.
Now let’s look at the statutory provisions to better appreciate this decision:
SECTION 80RR PROFESSIONAL INCOME FROM FOREIGN SOURCES IN CERTAIN CASES
Under Section 80RR, a resident individual, being an author, playwright, artist, musician or actor who derives income, in exercise of his profession, from foreign sources and receives such income in India and brings it into the country in foreign exchange in accordance with the Foreign Exchange Regulation Act, 1947, is entitled to deduct a certain percentage of the income so received or brought, in the computation of his total income.
Source: http://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_080rr.htm
(Alas the government site has been compromised after handing over the management of the contents to Taxmann and hence we can not view and refer to the up to date Act!)
Finance Act 2000 did away with the higher level of deduction (75%) and replaced that with the following limits:
Quantum of deduction................... For AY beginning on 1 April
Sixty percent.............................2001
Forty-five percent........................2002
thirty percent............................2003
Fifteen percent...........................2004
Rationale behind such concessions:
It’s evident; it encouraged such income earners to disclose those incomes and bring those incomes into India in convertible foreign currency.
Last words/Even if Tendulkar is not acclaimed as a great actor:
The intent of the law makers was not be partial to actors. The real motive was to channel foreign currencies into the country so there is no gainsaying that how can such concessions be granted to a person who is primarily a cricketer. So this verdict has set right the anomaly created by the decision of the CIT (A) and should be welcomed!
CA. Siddharth Ranjan
Source: http://articles.timesofindia.indiatimes.com/2011-05-23/off-the-field/29573690_1_deductions-cricketer-taxable-income
MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modeling in advertisements.
The two-member tribunal, which gave its order on May 20, 2011, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials.
Asha Vijayaraghavan, judicial member of the tribunal, and RK Panda, accountant member, gave the ruling on four appeals filed by the batting maestro against the verdict of chief commissioner of Income Tax (Appeals) for assessment years 2001-02 to 2004-2005.
Facts of the case:
Tendulkar had claimed deduction u/s 80 RR amounting to Rs 2,08,59,707 on account of receipt of Rs 5,92,31,211. He claimed deductions under Section 80 RR of I-T Act, on the ground that he was an 'actor' while appearing in advertisements.
The CIT (A) held that he was not an actor as cricket was his principal profession and disallowed this deduction.
Tendulkar contested this and submitted that the CIT (A) had wrongly held that he was not an actor as cricket was his principal profession.
The tribunal saw the reasonableness behind the claim of the batting maestro and opined:
"No doubt, being a successful cricketer, it has added to his brand value as a model. But the fact remains that the assessee has to use his own skills, imagination and creativity. Every person, or for that matter every sportsman, do not possess that degree of talent or skill or creativity and face the lights and camera etc."
"We are of the considered opinion that the income received by the assessee from modelling and appearing in TV commercials and similar activities can be termed as income derived from the profession of an artist."
"We accordingly hold that the amount of Rs 5,92,31,211 received by the assessee amounts to income derived by the assessee in the exercise of his profession as an artist and therefore entitled to deduction u/s 80RR of the Act."
The tribunal noted that Tendulkar had received an amount of Rs 19,92,27,085 as gross receipts from sports sponsorship and advertisements, which included an amount of Rs 5,92,31,211 received in convertible foreign exchange from ESPN Star Sports, Pepsico Inc and VISA.
Now let’s look at the statutory provisions to better appreciate this decision:
SECTION 80RR PROFESSIONAL INCOME FROM FOREIGN SOURCES IN CERTAIN CASES
Under Section 80RR, a resident individual, being an author, playwright, artist, musician or actor who derives income, in exercise of his profession, from foreign sources and receives such income in India and brings it into the country in foreign exchange in accordance with the Foreign Exchange Regulation Act, 1947, is entitled to deduct a certain percentage of the income so received or brought, in the computation of his total income.
Source: http://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_080rr.htm
(Alas the government site has been compromised after handing over the management of the contents to Taxmann and hence we can not view and refer to the up to date Act!)
Finance Act 2000 did away with the higher level of deduction (75%) and replaced that with the following limits:
Quantum of deduction................... For AY beginning on 1 April
Sixty percent.............................2001
Forty-five percent........................2002
thirty percent............................2003
Fifteen percent...........................2004
Rationale behind such concessions:
It’s evident; it encouraged such income earners to disclose those incomes and bring those incomes into India in convertible foreign currency.
Last words/Even if Tendulkar is not acclaimed as a great actor:
The intent of the law makers was not be partial to actors. The real motive was to channel foreign currencies into the country so there is no gainsaying that how can such concessions be granted to a person who is primarily a cricketer. So this verdict has set right the anomaly created by the decision of the CIT (A) and should be welcomed!
Thursday, April 14, 2011
The fight against corruption has just begun:
Sri Anna Hazare praised Narendra Modi and Nitish kumar for their developmental activities. Notwithstanding his categorical distancing from the communal riot in 2002, a section of the people have already started vilifying Anna for his praising only non-congress state governments.
Without vilifying or parsing Sri Narendra Modi let us accept the reality. Economic statistics- whether by government or independent organizations- show Gujarat as the fastest growing state. For last couple of years Bihar has finished the second, under the leadership of Sri Nitish Kumar, in this race of economic growth among Indian states. The work that Sri Narendra Modi has done for the farmers is phenomenal, asserts Swaminathan A Aiyar- a leading rationalist and perhaps the finest economic analyst of our country.
Darul Uloom vice-chancellor Maulana Ghulam Mohammed Vastanvi, an MBA, said in an interview to TOI that Gujarati Muslims were not discriminated against and that ''all communities'' prosper in the state. He called 2002 Gujarat riots ''a blemish for India'' and asked the community to move on. Source:http://articles.timesofindia.indiatimes.com/2011-01-21/india/28370177_1_maulana-ghulam-mohammed-vastanvi-muslim-cleric-gujarat-riots
The above is just to put the debate on an even keel and is no way meant to justify communalism for the sake of development. Yet dividing the united front just for such bye-gone issues and missing the larger issue of checkmating the larger issue of rampant corruption would be simply insane.
In the same vein may I request the Yoga guru Baba Ram dev not to pull out his stock from this common front on the issue of the father son duo- Shanti Bhusan & Prashant Bhushan- being on the committee and also the exclusion of the iconic religious leader from the same. Baba Ramdev would agree, united we stand to gain. Besides any person with intellect can discern that the opposition would love to see the unity dissipate and a gradual crumbling or better still a sudden collapse of the anti-corruption peoples’ front. That such a common front could be fashioned at such a short notice and the entire nation stood behind it is almost like a miracle and now onwards we have to invest more maturity, sagacity and generosity to maintain the bonhomie.
Most humbly, may I also plead with Sri Anna Hazare to weight his utterances and ponder over the likely consequences of those before committing himself to anything. We can ill afford to see he – Mr Hazare-being put to difficult situations for his undiplomatic outbursts.
Very recently Mr Hazare lost his cool and commented that Kapil Sibal should resign from the panel- for drafting the lokpal bill- if he doesn't believe in Lokpal Bill. Mr. Hazare may be right in his outbursts yet we’ve to constantly remind ourselves that people like Mr. Sibal and Mr. Sanghvi are adept at political talks and they would really feel elated if they find that they have ruffled the opponent, for then they know the opponent would start committing mistakes.
Rightly Mr Hazare said- just after ending his fast on 9 April 2011- that the fight has just begun. At any rate it is going to be a long and arduous fight. In the face of duplicity and political back stabbing the Satyagrahi will have to maintain his calm and steel his nerves for the worst and during all these travails must never permit any ill feeling for the opponent! For it believes in “Hrudaya Parivartan”- change of heart!
Rationally thinking, it would take a minimum of one year and in Indian context it would take two years to hammer out the logistics and the water tight mechanisms to set the process rolling. People who want to botch the process would grudgingly agree to all provisions, howsoever lofty, and would arraign to kill it in infancy by choking its finances. So a major battle is going to be fought, over the issue of financing a truly effective “Lokpal Act”, in the near future.
It goes without saying that Gandhian fights are noble, for these are not like vendetta and at every stage the satyagrahi remains ever ready to concede to the demand of the oppressor, if they could further the cause of Truth. A modicum of forgiveness in the form of constituting a “Truth and reconciliation commission” – in line with the one constituted in South Africa- at the end of apartheid- to avoid witch hunting and getting maximum number of people on board should be seriously considered. IMHO such a commission - “Truth and reconciliation commission” – would be a worthy precursor to a full fledged Lokpal Act.
Without vilifying or parsing Sri Narendra Modi let us accept the reality. Economic statistics- whether by government or independent organizations- show Gujarat as the fastest growing state. For last couple of years Bihar has finished the second, under the leadership of Sri Nitish Kumar, in this race of economic growth among Indian states. The work that Sri Narendra Modi has done for the farmers is phenomenal, asserts Swaminathan A Aiyar- a leading rationalist and perhaps the finest economic analyst of our country.
Darul Uloom vice-chancellor Maulana Ghulam Mohammed Vastanvi, an MBA, said in an interview to TOI that Gujarati Muslims were not discriminated against and that ''all communities'' prosper in the state. He called 2002 Gujarat riots ''a blemish for India'' and asked the community to move on. Source:http://articles.timesofindia.indiatimes.com/2011-01-21/india/28370177_1_maulana-ghulam-mohammed-vastanvi-muslim-cleric-gujarat-riots
The above is just to put the debate on an even keel and is no way meant to justify communalism for the sake of development. Yet dividing the united front just for such bye-gone issues and missing the larger issue of checkmating the larger issue of rampant corruption would be simply insane.
In the same vein may I request the Yoga guru Baba Ram dev not to pull out his stock from this common front on the issue of the father son duo- Shanti Bhusan & Prashant Bhushan- being on the committee and also the exclusion of the iconic religious leader from the same. Baba Ramdev would agree, united we stand to gain. Besides any person with intellect can discern that the opposition would love to see the unity dissipate and a gradual crumbling or better still a sudden collapse of the anti-corruption peoples’ front. That such a common front could be fashioned at such a short notice and the entire nation stood behind it is almost like a miracle and now onwards we have to invest more maturity, sagacity and generosity to maintain the bonhomie.
Most humbly, may I also plead with Sri Anna Hazare to weight his utterances and ponder over the likely consequences of those before committing himself to anything. We can ill afford to see he – Mr Hazare-being put to difficult situations for his undiplomatic outbursts.
Very recently Mr Hazare lost his cool and commented that Kapil Sibal should resign from the panel- for drafting the lokpal bill- if he doesn't believe in Lokpal Bill. Mr. Hazare may be right in his outbursts yet we’ve to constantly remind ourselves that people like Mr. Sibal and Mr. Sanghvi are adept at political talks and they would really feel elated if they find that they have ruffled the opponent, for then they know the opponent would start committing mistakes.
Rightly Mr Hazare said- just after ending his fast on 9 April 2011- that the fight has just begun. At any rate it is going to be a long and arduous fight. In the face of duplicity and political back stabbing the Satyagrahi will have to maintain his calm and steel his nerves for the worst and during all these travails must never permit any ill feeling for the opponent! For it believes in “Hrudaya Parivartan”- change of heart!
Rationally thinking, it would take a minimum of one year and in Indian context it would take two years to hammer out the logistics and the water tight mechanisms to set the process rolling. People who want to botch the process would grudgingly agree to all provisions, howsoever lofty, and would arraign to kill it in infancy by choking its finances. So a major battle is going to be fought, over the issue of financing a truly effective “Lokpal Act”, in the near future.
It goes without saying that Gandhian fights are noble, for these are not like vendetta and at every stage the satyagrahi remains ever ready to concede to the demand of the oppressor, if they could further the cause of Truth. A modicum of forgiveness in the form of constituting a “Truth and reconciliation commission” – in line with the one constituted in South Africa- at the end of apartheid- to avoid witch hunting and getting maximum number of people on board should be seriously considered. IMHO such a commission - “Truth and reconciliation commission” – would be a worthy precursor to a full fledged Lokpal Act.
Public nudity, cheer girls and cricket
The precursor:
As
Paraguay advanced to the quarterfinals of 2010 soccer world cup, Larissa
Riquelme- a 24-year old Paraguayan lingerie model- declared that she would run
naked through the streets "her body painted with the colors of
Paraguay", if Paraguay Won the soccer World Cup. Just before that the
legendary maverick soccer icon and coach of Argentina - Diego Maradona - had
also made a similar declaration. Unlike Paraguay, Argentina was among the
favorites. Both- Diego Maradona’s and Riquelme's- pledges to bare their bodies
ended in heartbreaks, as none of their countries lifted the coveted trophy. If
any one of their countries had won, there was a real possibility that the
victorious team’s fan would have honored their pledge. It goes without saying
that such acts are routine in the west, which is labeled as a more permissive
culture.
Advent of a local heroine in India:
This is the age of
globalization, so how can India be untouched with such global happenings!
Taking a leaf out of the above one of our lesser known local model- Poonam
Pandey- made similar declarations.
Justifying it with science:
Like
techno savvy IT professionals her approach was more intellectual. On the eve of
2011 Cricket World Cup she wrote to BCCI- Board of cricket controllers of
India- and sought their permission to pose in nude before the Indian team- if
they won the trophy. Anyone who is at all aware of Indian technicalities knows
that this would never be permitted, so at best this was a PR stunt. As soccer
or football is to Argentines and Paraguayans so is cricket to India.
Repeat of 1983 in 2011:
Lo
and behold! Under the charismatic leadership of MSD- Mahendra Singh Dhoni- India
actually became victorious and lifted the trophy! This was the second time
India won the Cricket World cup and the country was on fire! Cricket, which
already was the most popular sport in India, became the unofficial religion of
the subcontinent!
The
entire country went into a high. It also presented another opportunity for
Poonam to drag her stunts on and on. Now, Poonam repeated her offer and wanted
to go nude before the players so as to keep her promise and also to boost their
morale!
Undaunted, Poonam upped the ante!
She
sited psychological evidences for the same. She also submitted- through a
letter- that if Indian laws are not permitting the same, she would do the
exhibition in a foreign country, where such nudity is permitted. She suggested
Paris, which is very much suited for this purpose, more so as she proposed to do
this in a private lobby or in the players’ dressing room.
Again
anyone who knows, what public sentiments are in India and how BBCI has to
handle people’s sentiments, would tell that, the board couldn’t accept even
such an offer. Poonam and her advisers should also have known the same. So; is
Poonam’s posturing only meant for ‘exhibitionism’?
Perhaps
not, for it has appeared in the print media that she has already posed in nude
for some magazines. Yet, in light of the foregoing discussions it is apparent
that publicity is the leitmotif behind these declarations. Even if she cannot
be charged for ‘exhibitionism’, it remains to be seen whether she can be persecuted
against for ‘indecency’ or ‘vulgarity’. IMHO the best course would have been to
deny her any further publicity by simply ignoring her. May be that’s why Ricky
Martin said “Ignore the ignorant”.
Poonam would continue to feature in the news papers:
Somebody
has filed a case against her. Sometimes it is difficult not to think that she
has arranged to file such a case, which in Indian conditions would actually end
up giving her further publicity! Politicians and controversy seeking film
makers are known to have adopted this route, for publicity, in the past.
A
legal wrangling would provide a further excuse for the newspapers- both to
prominently flash her more revealing poses and to feed the gossip columns- to
increase their circulations! This would only give her and the yellow press a
further lease of life in the print and on the net. For, our legal system is
already choked and it can not bring her to justice, even if it’s clear that she
is only out to garner some publicity for her.
16
May 2012:
As
reported in Hindustan Times, Poonam has again offered to stripe for SRK-
Saharukh Khan- and his team KKR- Kolkota Knight Riders. Rationale for this
offer: to raise the motivation of team KKR after their last two losses in
IPL-5. KKR was at the top of the points table up till the two losses.
Poonam apparently loves to
post her with 'bikini' and 'without bikini' pics on Twitter and is so confident
of her body that she ridicules Bollywood beauties for not having the
perfect body to carry her favorite two-piece outfit!
The starlet-turned-actor
and the Kingfisher model is only 20 years old now and hence certainly she is
not a spent force. The trends suggest we'd keep on hearing about her rantings
on striping in the future also.
http://www.hindustantimes.com/Entertainment/Tabloid/I-will-strip-for-SRK-Poonam-Pandey/Article1-856628.aspx
19
May 2012:
Now
Sunny Leone is not an unknown name in India. However for the sake of the
general audience, she is an Indian Origin Porn artist who obtained (?) Indian
citizenship recently. Sunny Leone feels herself to be very
conservative, considering that she works in hardly 1 adult movie, a year. This
gave an opportunity for our local heroine- Poonam Pandey- to take a dig at her
and in the process remain in the lime light of media glare.
These
controversies have actually paid off! Now Poonam has an offer to act in a
movie!
Source:
http://tdnpost.com/news/poonam-takes-a-dig-at-sunny-38480.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+tdnpost+%28The+Daily+News+Post+India+-+tdnpost.com%29
What should be the priority for the courts?
Poonam's
crime- if at all proven in an Indian court- does not seem so grave compared to
the list of endless crimes of mega financial corruptions and cases where state
complicity has resulted in denying justice to hundreds of thousands of people.
A few such cases are: the Bhopal gas victims’ cases of 1984, the 1984 riot
victims’ cases of Delhi, the Bihar Fodder scam, the cases of riot victims of
Gujarat in 2002 and very recently those of 2G, Adarsh housing Scam and Mining
lease scam, where the state has been defrauded of billions of rupees. When such
grave cases can not be adjudicated for years and decades, it’s foolhardy to
think that Poonam’s case would be decided, any time sooner.
However
this offers an opportunity to examine the case of nudity threadbare! Lets
examine what encourages young nubile girls to bare their bodies and what goes
behind such exposes:
Nudity in cricket:
Cricket
has truly transformed India. It has already shown that it can bring about what
politicians have failed to do for last five decades- peace and bonhomie between
India and Pakistan!
It
holds a rational mirror in front of the ignorant obscurantist, when he demands
male cheer boys instead of cheer girls for male cricketers. The pun is: do such
perverts think that a majority of our male cricketers are homosexuals? The
recent outbursts of opportunistic politicians have forced many teams
to dress their cheer girls from top to toe and some have also gone for a much
cheaper alternative of Indian women clad in sari. But when it comes down
to performance, the difference in their acrobatic skills clearly
separates cheer girls from crooning women!
However, when the first such charge
of display of flesh was made against the cheer girls, what came almost involuntarily
to my mind was: do we go to see trapeze artistes in circus for their
curves or their swings! As beauty lies in the eyes of the beholder, perhaps so
does vulgarity.
Last words:
Public
debate on nudity and use of women and girls for commercial advertisement is
already on. What those cheer girls should or should not wear is being discussed
not only in cities but also in the remote places and inaccessible villages of
India and abroad. It appears, we are - slowly yet firmly - verging onto the
so-called international stand, which can otherwise be termed as the humane
stand.
What
is heartening in all this is: cricket is really decimating boundaries- both
geographical and cultural. Do you need a proof? Well, now it’s only a matter of
time when we would resume cricketing ties with Pakistan. The religious
fundamentalists- be he a Hindu or a Muslim- would object to that and threaten
disruption but the craze for cricket would not listen to any and the
brotherhood of humanity would triumph.
Taliban,
who are yet to find suitable explanations for those viagra tablets in Osama Bin
Laden's hideout, would promptly denounce a resumption of cricketing ties with
India as Shiv-sena would in. However, in the depth of their hearts they'd
have already started fearing for a public out-lash. So, Taliban be aware
of the cheer girls!
(Word
count = 1490)
Tuesday, March 1, 2011
Canon of 'simplicity' and the bane of rising complexity in the meaning of 'individual' in DTC
“Rules are not necessarily sacred, principles are.”
Franklin D. Roosevelt
Indian income tax laws are considered to be among the most complicated statutes in the world. Rightly all stake holders- the tax administrators, practitioners and the tax payers- have shown concern for this. The shrill voices calling for substantial reforms in these laws and there by bringing in rationality in tax imposition, administration and collection have already assumed the proportion of a crescendo and there is no going back from here. This is ultimately going to result in the demise of the existing legislation and dawn of the era of DTC- Direct Taxes Code.
Values and principles had seldom assumed such high significance, in the recorded history, as they do now. In most of the countries, more so in case of the civilized world, there is a genuine concern for principles and values. Again and again practices like dictatorships and intolerant religious polities are getting replaced by pluralistic democracies. In the same vein ideologically bankrupt ideas like usurious taxation to feed a lethargic bureaucracy is giving into privatization and enabling tax legislations. This move towards, first identifying the right principles and then aligning the policies and procedures in line with those identified policies is getting more visibly manifested in case of fiscal legislations and accounting best practices. Two examples would more suitably demonstrate this shift; one is the case of the global raze for IFRS- International Financial Reporting Standards- and the other is the current reforms in Indians tax laws.
IFRS-Hopefully the US will take the right call in 2011:
Prevailing Accounting standards in the US are much too detailed and as per some claims the literature containing the accounting standards in US run into more than 20,000 (twenty thousand) standard pages. This huge output is due to the rule based approach that they have followed in the US. Now there is a good possibility that the US will adopt IFRS, which is principle based, and hence is far too less bulky in comparison to US GAAP- Generally Accepted Accounting Principles. It goes without saying that this is a paradigm shift and this is going to change the world, for the better, very radically.
In a lighter vein, shall we say, the Americans are revisiting the fundamentals as laid down by their past president- Dwight David Eisenhower- who said: “People who value their privileges above their principles soon loses both.”!
As the LPG- liberalization, privatization and globalization- culture and the resultant reality of ‘a global village’ is no longer a matter of fancy or choice but is an actual reality, we are also riding the bus! Though the international community aspires us, and also the US, to adopt- not just converge with- the IFRS; we have gone the convergence way and hope the policies would be better aligned in the future.
In case of the reforms in tax laws we can discuss it by talking about its two legs- Direct taxes and Indirect taxes- separately.
Principles of Taxation:
As we’ve stated at the outset that the flavor of the time is principles, let’s briefly touch upon the principles that should guide policy formulation on taxation.
Adam Smith – the pioneer political economist, better known as the father of modern Economics for writing the magnum opus ‘An Inquiry into the Nature and Causes of the Wealth of Nations’- has listed the following as the four canons of taxation:
1. Equality: (Ability-to-pay) “…ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue (income) which they respectively enjoy under the protection of the state.”
2. Certainty: “The tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person.”
3. Convenience in payment: “Every tax ought to be levied at the time, or in the manner, in which it is most likely to be convenient for the contributor to pay it.”
4. Economy in collection: “Every tax ought to be so contrived as both to take out and to keep out of the pockets of the people as little as possible, over and above what it brings into the public treasury of the state.”
Perhaps we can add a fifth: ‘Simplicity’, to the above list. We can safely assume that for Adam Smith this principle is embedded in the canons of ‘Certainty’ and ‘Convenience in payment’. For, unless the tax provisions are simple to understand and adhere to, the canons of ‘certainty’ and ‘convenience in payment’ would be defeated.
What is more, there should be a balance between the above principles. In the name of upholding the principle of equity or for that matter any other principle or a combination of a few principles the laws should not lose complete sight of some other principles.
Indirect taxes:
The delay in implementation of GST- Goods and services Taxes- is now really reflecting upon the fractured nature of our polity. As it also impinges upon the federal nature of our polity, which is a very fundamental aspect of our democratic pluralism, it requires a bit of tight rope walking. Up till now the central tax authorities and the different provincial tax authorities have not been able to come to consensus with respect to revenue sharing, statute making and dispute resolution mechanisms for GST and hence implementation of this very important enabler is getting delayed. That we are getting closer to its actual implementation, every year, and probably going to get a more full proof system is the silver lining. Besides haven’t we got used to such procrastinations, prevarications and mud slinging!
With the declaration of the proposals regarding creation of a sound IT- Information Technology- back bone and the fact that this crucial job is going to be supervised by none other than the redoubtable Mr Nandan Nilekani- chairman of UID project- brings solace to our hearts. Apparently, though implementation of GST would get a bit delayed yet the process is very much on the rails and is kicking!
Direct taxes
As GST is to indirect taxes so is DTC- Direct Taxes code- to Direct taxes.
In the instant case the author would humbly attempt to point out just one anomaly which emanates due to putting undue wrong emphasis on the principle of ‘equity’ in gross disregard to the principles of ‘simplicity’, ‘certainty’ and ‘ease in payment of taxes’
This anomaly has arisen due to acknowledging multiple categories inside the definition of ‘individual’ as is appearing under section 2(31) of the Income tax Act 1961 and then prescribing different exemption limits for different category of tax payers inside this classification.
Till 2005 ‘individual’ meant only one thing- an individual. It got trifurcated when the then wise FM – Mr. P. Chidambaram- brought in the distinction of women and senior citizens, from others, in budget 2005-06.
Just six years down the road, in the union budget for 2011-12, his successor has capitulated to the same temptation: to further complicate the provisions! And in the process has further widened the chasm by bringing in one more category: ‘very senior citizens’.
Why do they do this?
Well, the stated purpose is to further the avowed exhortations that we’ve made in the preamble to our constitution –‘that we would strive to achieve equality of status and opportunity for all’. As discussed above, equity is also a cardinal principle of taxation, yet it is certainly not the only principle and hence it has to function in coherence with its other cousins!
Selective amnesia prevails over these gentlemen- Finance Ministers under different regimes- who forget in the momentary pleasure of populist high, which they get by giving in to such rank populism:
• That now we’ve the ignominy of having one of the most complicated tax laws.
• That ideally the Income Tax law should primarily attempt to do that what it is meant for: raising tax.
• That the objectives are better achieved by adhering to certain time tested principles like simplicity, certainty and ease in discharging the obligations instead of making posturing for just one- equity.
• That prudence dictates that, in a taxing statute the number of exemption provisions should be very few and the above categorization is nothing but partial exemption provisions and hence keeping those limited to one would serve the leitmotif of reforms in tax laws: simplification.
DTC- Direct tax code- is definitely going to get affected by these populist capitulations. This is already evident in the fact that though the initial draft of DTC alluded to the pre- 2005 era provisions with respect to that of ‘individual’, subsequently they had to concede one more exception in the form of a separate acknowledgement for the senior citizens. It was really surprising that in an era of rising women power they did away with the existing preferential treatment for women by removing the increased exemption limits for them.
However in light of the concessions made in this years budget, AY 2011-12, by conceding another additional categorization in the form of ‘very senior citizens’, which is happening in the immediately preceding year- assuming DTC would be implemented in 2012- can the government continue with this just two tier categorization, for the term “Individual”, in DTC?
What is more?
This distortion could become much more acute if the present PM -and the visionary FM of early 1990s- gets back the finance portfolio; for then he might seek a preferential treatment for minorities; as he has publicly declared that the minorities have the first claims against the national resources! For claims to resources could be made in two ways, either by laying hands on the national resources or withholding the dues to the national exchequer. A higher income tax exemption limit would just fit in to the later constructs.
The term in vogue these days is ‘empowerment of the youth’. So some populist leaders, sans any real vision, might demand a preferential treatment for the youth and as the people below 35 are going to constitute the biggest block of the electorate, in the coming years, those demands might be conceded. Then we would end up with 5 blocks, according to age; say:
Individuals below 20,
Individuals above 20 but below 40,
Individuals above 40 but below 60,
Individuals above 60 but below 80 and
Individuals above 80
Please remember the above blocks will have further empowering provisions- read as complications in the form of sub blocks- according to sex- male and female- and then according to their religious status- minorities or otherwise.
The champions of caste politics would clamor for equity for the historically underprivileged and that would call for further complications in the form of accommodating the interest of STs and SCs, OBCs and SEBCs.
Still the demand would not end; physically and mentally challenged people would rightly claim preferential treatment. For, who on earth would not admit that a male blind person is more disadvantaged than a healthy woman with the faculty of unimpaired vision?
If this loophole is left unplugged then provisions for individuals alone would require an entire chapter and in the process the attempts to simplify and rationalize direct tax laws by bringing in DTC would go for a six!
"History repeats itself, first as tragedy, second as farce”.
Karl Marx
Last words:
To achieve equity we can further enhance the exemption limits; say from Rs 200,000 to Rs 300,000 for all individuals.
Let’s admit bulk of our very senior citizens live in our villages and it does not matter for them if we have a higher exemption limit for them, for bulk of them are not in the income tax net! Despite so much of urban migration, still 70 percent of Indian populace lives in villages and most of them are poor or marginally well off. What these elderly Indians need is functional public hospitals and other public facilities, which can be provided only if we’ve a sound policy regarding raising and spending taxes.
And having addressed the issue of equity, while finalizing the DTC provisions, would it not be nice if we reverted back to the simple slab rates – as they existed before 2005? Would it not be just nice if individuals meant only individuals and no distinction was made for age, sex, caste, religion, race or physical abilities?
Franklin D. Roosevelt
Indian income tax laws are considered to be among the most complicated statutes in the world. Rightly all stake holders- the tax administrators, practitioners and the tax payers- have shown concern for this. The shrill voices calling for substantial reforms in these laws and there by bringing in rationality in tax imposition, administration and collection have already assumed the proportion of a crescendo and there is no going back from here. This is ultimately going to result in the demise of the existing legislation and dawn of the era of DTC- Direct Taxes Code.
Values and principles had seldom assumed such high significance, in the recorded history, as they do now. In most of the countries, more so in case of the civilized world, there is a genuine concern for principles and values. Again and again practices like dictatorships and intolerant religious polities are getting replaced by pluralistic democracies. In the same vein ideologically bankrupt ideas like usurious taxation to feed a lethargic bureaucracy is giving into privatization and enabling tax legislations. This move towards, first identifying the right principles and then aligning the policies and procedures in line with those identified policies is getting more visibly manifested in case of fiscal legislations and accounting best practices. Two examples would more suitably demonstrate this shift; one is the case of the global raze for IFRS- International Financial Reporting Standards- and the other is the current reforms in Indians tax laws.
IFRS-Hopefully the US will take the right call in 2011:
Prevailing Accounting standards in the US are much too detailed and as per some claims the literature containing the accounting standards in US run into more than 20,000 (twenty thousand) standard pages. This huge output is due to the rule based approach that they have followed in the US. Now there is a good possibility that the US will adopt IFRS, which is principle based, and hence is far too less bulky in comparison to US GAAP- Generally Accepted Accounting Principles. It goes without saying that this is a paradigm shift and this is going to change the world, for the better, very radically.
In a lighter vein, shall we say, the Americans are revisiting the fundamentals as laid down by their past president- Dwight David Eisenhower- who said: “People who value their privileges above their principles soon loses both.”!
As the LPG- liberalization, privatization and globalization- culture and the resultant reality of ‘a global village’ is no longer a matter of fancy or choice but is an actual reality, we are also riding the bus! Though the international community aspires us, and also the US, to adopt- not just converge with- the IFRS; we have gone the convergence way and hope the policies would be better aligned in the future.
In case of the reforms in tax laws we can discuss it by talking about its two legs- Direct taxes and Indirect taxes- separately.
Principles of Taxation:
As we’ve stated at the outset that the flavor of the time is principles, let’s briefly touch upon the principles that should guide policy formulation on taxation.
Adam Smith – the pioneer political economist, better known as the father of modern Economics for writing the magnum opus ‘An Inquiry into the Nature and Causes of the Wealth of Nations’- has listed the following as the four canons of taxation:
1. Equality: (Ability-to-pay) “…ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue (income) which they respectively enjoy under the protection of the state.”
2. Certainty: “The tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person.”
3. Convenience in payment: “Every tax ought to be levied at the time, or in the manner, in which it is most likely to be convenient for the contributor to pay it.”
4. Economy in collection: “Every tax ought to be so contrived as both to take out and to keep out of the pockets of the people as little as possible, over and above what it brings into the public treasury of the state.”
Perhaps we can add a fifth: ‘Simplicity’, to the above list. We can safely assume that for Adam Smith this principle is embedded in the canons of ‘Certainty’ and ‘Convenience in payment’. For, unless the tax provisions are simple to understand and adhere to, the canons of ‘certainty’ and ‘convenience in payment’ would be defeated.
What is more, there should be a balance between the above principles. In the name of upholding the principle of equity or for that matter any other principle or a combination of a few principles the laws should not lose complete sight of some other principles.
Indirect taxes:
The delay in implementation of GST- Goods and services Taxes- is now really reflecting upon the fractured nature of our polity. As it also impinges upon the federal nature of our polity, which is a very fundamental aspect of our democratic pluralism, it requires a bit of tight rope walking. Up till now the central tax authorities and the different provincial tax authorities have not been able to come to consensus with respect to revenue sharing, statute making and dispute resolution mechanisms for GST and hence implementation of this very important enabler is getting delayed. That we are getting closer to its actual implementation, every year, and probably going to get a more full proof system is the silver lining. Besides haven’t we got used to such procrastinations, prevarications and mud slinging!
With the declaration of the proposals regarding creation of a sound IT- Information Technology- back bone and the fact that this crucial job is going to be supervised by none other than the redoubtable Mr Nandan Nilekani- chairman of UID project- brings solace to our hearts. Apparently, though implementation of GST would get a bit delayed yet the process is very much on the rails and is kicking!
Direct taxes
As GST is to indirect taxes so is DTC- Direct Taxes code- to Direct taxes.
In the instant case the author would humbly attempt to point out just one anomaly which emanates due to putting undue wrong emphasis on the principle of ‘equity’ in gross disregard to the principles of ‘simplicity’, ‘certainty’ and ‘ease in payment of taxes’
This anomaly has arisen due to acknowledging multiple categories inside the definition of ‘individual’ as is appearing under section 2(31) of the Income tax Act 1961 and then prescribing different exemption limits for different category of tax payers inside this classification.
Till 2005 ‘individual’ meant only one thing- an individual. It got trifurcated when the then wise FM – Mr. P. Chidambaram- brought in the distinction of women and senior citizens, from others, in budget 2005-06.
Just six years down the road, in the union budget for 2011-12, his successor has capitulated to the same temptation: to further complicate the provisions! And in the process has further widened the chasm by bringing in one more category: ‘very senior citizens’.
Why do they do this?
Well, the stated purpose is to further the avowed exhortations that we’ve made in the preamble to our constitution –‘that we would strive to achieve equality of status and opportunity for all’. As discussed above, equity is also a cardinal principle of taxation, yet it is certainly not the only principle and hence it has to function in coherence with its other cousins!
Selective amnesia prevails over these gentlemen- Finance Ministers under different regimes- who forget in the momentary pleasure of populist high, which they get by giving in to such rank populism:
• That now we’ve the ignominy of having one of the most complicated tax laws.
• That ideally the Income Tax law should primarily attempt to do that what it is meant for: raising tax.
• That the objectives are better achieved by adhering to certain time tested principles like simplicity, certainty and ease in discharging the obligations instead of making posturing for just one- equity.
• That prudence dictates that, in a taxing statute the number of exemption provisions should be very few and the above categorization is nothing but partial exemption provisions and hence keeping those limited to one would serve the leitmotif of reforms in tax laws: simplification.
DTC- Direct tax code- is definitely going to get affected by these populist capitulations. This is already evident in the fact that though the initial draft of DTC alluded to the pre- 2005 era provisions with respect to that of ‘individual’, subsequently they had to concede one more exception in the form of a separate acknowledgement for the senior citizens. It was really surprising that in an era of rising women power they did away with the existing preferential treatment for women by removing the increased exemption limits for them.
However in light of the concessions made in this years budget, AY 2011-12, by conceding another additional categorization in the form of ‘very senior citizens’, which is happening in the immediately preceding year- assuming DTC would be implemented in 2012- can the government continue with this just two tier categorization, for the term “Individual”, in DTC?
What is more?
This distortion could become much more acute if the present PM -and the visionary FM of early 1990s- gets back the finance portfolio; for then he might seek a preferential treatment for minorities; as he has publicly declared that the minorities have the first claims against the national resources! For claims to resources could be made in two ways, either by laying hands on the national resources or withholding the dues to the national exchequer. A higher income tax exemption limit would just fit in to the later constructs.
The term in vogue these days is ‘empowerment of the youth’. So some populist leaders, sans any real vision, might demand a preferential treatment for the youth and as the people below 35 are going to constitute the biggest block of the electorate, in the coming years, those demands might be conceded. Then we would end up with 5 blocks, according to age; say:
Individuals below 20,
Individuals above 20 but below 40,
Individuals above 40 but below 60,
Individuals above 60 but below 80 and
Individuals above 80
Please remember the above blocks will have further empowering provisions- read as complications in the form of sub blocks- according to sex- male and female- and then according to their religious status- minorities or otherwise.
The champions of caste politics would clamor for equity for the historically underprivileged and that would call for further complications in the form of accommodating the interest of STs and SCs, OBCs and SEBCs.
Still the demand would not end; physically and mentally challenged people would rightly claim preferential treatment. For, who on earth would not admit that a male blind person is more disadvantaged than a healthy woman with the faculty of unimpaired vision?
If this loophole is left unplugged then provisions for individuals alone would require an entire chapter and in the process the attempts to simplify and rationalize direct tax laws by bringing in DTC would go for a six!
"History repeats itself, first as tragedy, second as farce”.
Karl Marx
Last words:
To achieve equity we can further enhance the exemption limits; say from Rs 200,000 to Rs 300,000 for all individuals.
Let’s admit bulk of our very senior citizens live in our villages and it does not matter for them if we have a higher exemption limit for them, for bulk of them are not in the income tax net! Despite so much of urban migration, still 70 percent of Indian populace lives in villages and most of them are poor or marginally well off. What these elderly Indians need is functional public hospitals and other public facilities, which can be provided only if we’ve a sound policy regarding raising and spending taxes.
And having addressed the issue of equity, while finalizing the DTC provisions, would it not be nice if we reverted back to the simple slab rates – as they existed before 2005? Would it not be just nice if individuals meant only individuals and no distinction was made for age, sex, caste, religion, race or physical abilities?
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