Nirav Modi's brother, Nehal Modi, has been arrested in the United States based on an extradition request made by India's Central Bureau of Investigation (CBI) and the Enforcement Directorate. The United States Department of Justice has informed Indian authorities that Nehal Modi, brother of fugitive economic offender Nirav Modi, was arrested by US authorities on July 4. According to reports, the next date for the hearing in the matter is July 17.&nbsp;"The arrest has been made pursuant to an extradition request jointly submitted by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI)," said the officials.&nbsp;Nehal Modi is expected to seek bail during the hearing. The US prosecutors are expected to oppose his bail.<h2><a href="https://www.wionews.com/india-news/red-corner-notice-against-nirav-modis-brother-remains-valid-cbi-260646/amp">Who is Nehal Modi?</a></h2>Nehal Modi is a Belgian national. He was arrested on the basis of a Red Corner Notice issued by Interpol at the request of the CBI and ED. He had challenged the notice but failed to get it revoked.&nbsp;<a href="https://www.wionews.com/india-news/interpol-issues-red-corner-notice-against-fugitive-nirav-modis-brother-nehal-249347">Also read: Interpol issues Red Corner Notice against fugitive Nirav Modi's brother Nehal&nbsp;</a> &nbsp;Nehal Modi is accused of being involved in the Punjab National Bank scam, in which Nirav Modi is the main accused. Nehal Modi allegedly played a role in helping his brother destroy evidence, intimidate witnesses, and obstruct the probe into the scam.&nbsp;He is also accused of laundering black money. He allegedly distributed this money through shell companies. &nbsp;<h2>What are the charges against Nehal Modi?</h2>According to the complaint&nbsp;in the United States, India's&nbsp;extradition proceedings were&nbsp;based on the alleged violation of two laws --&nbsp;Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code.&nbsp;Nehal Modi's brother, Nirav Modi, is also facing extradition from the United Kingdom.

Nirav Modi's brother, Nehal Modi, has been arrested in the United States based on an extradition request made by the Central Bureau of Investigation (CBI) and the Enforcement Directorate. 

Nirav Modi's brother, Nehal Modi, has been arrested in the United States based on an extradition request made by India's Central Bureau of Investigation (CBI) and the Enforcement Directorate. The United States Department of Justice has informed Indian authorities that Nehal Modi, brother of fugitive economic offender Nirav Modi, was arrested by US authorities on July 4. According to reports, the next date for the hearing in the matter is July 17. "The arrest has been made pursuant to an extradition request jointly submitted by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI)," said the officials. Nehal Modi is expected to seek bail during the hearing. The US prosecutors are expected to oppose his bail. Who is Nehal Modi? Nehal Modi is a Belgian national. He was arrested on the basis of a Red Corner Notice issued by Interpol at the request of the CBI and ED. He had challenged the notice but failed to get it revoked. Also read: Interpol issues Red Corner Notice against fugitive Nirav Modi's brother Nehal Nehal Modi is accused of being involved in the Punjab National Bank scam, in which Nirav Modi is the main accused. Nehal Modi allegedly played a role in helping his brother destroy evidence, intimidate witnesses, and obstruct the probe into the scam. He is also accused of laundering black money. He allegedly distributed this money through shell companies. What are the charges against Nehal Modi? According to the complaint in the United States, India's extradition proceedings were based on the alleged violation of two laws -- Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, and criminal conspiracy under Sections 120-B and 201 of the Indian Penal Code. Nehal Modi's brother, Nirav Modi, is also facing extradition from the United Kingdom.

Nehal Modi is expected to seek bail during his next hearing. The US prosecutors are expected to oppose his bail.

Who is Nehal Modi? Why the US authorities arrested Nirav Modi's brother?

After a UK court ruled in favour of fugitive businessman Nirav Modi's extradition to India, the Ministry of External Affairs (MEA) on Thursday said the government will liaise with authorities in the UK for his early extradition.

The diamantaire, wanted in India on charges of fraud and money laundering in the estimated USD 2-billion Punjab National Bank (PNB) scam case, lost his legal battle against extradition on all grounds as District Judge Samuel Goozee also concluded that there are no human rights concerns that his medical needs would not be addressed as per several Indian government assurances.

Replying to a query during an online media briefing, MEA spokesperson Anurag Srivastava said that since the Westminster Magistrate''s Court has recommended to the UK Home Secretary for Nirav Modi''s extradition, "the Government of India would liaise with the UK authorities for his early extradition to India."

On the request of the CBI and the ED, Modi''s extradition from the UK was sought in August 2018. He was arrested and produced before the Senior District Judge at Westminster Magistrate''s court on March 20, 2019.

Since then he is facing extradition proceedings while in judicial custody.

The final hearing in this case was held on January 7-8, 2021, while the Westminster Magistrate''s Court in London earlier in the day pronounced that he be extradited to India to stand trial.

"Dismissing the mental health concerns raised by Nirav Modi, the judge observed that Nirav Modi conspired to destroy evidence and intimidate witnesses," Srivastava said.&nbsp;

(With inputs from agencies)

After a UK court ruled in favour of fugitive businessman Nirav Modi's extradition to India, the Ministry of External Affairs (MEA) on Thursday said the government will liaise with authorities in the UK for his early extradition.

After a UK court ruled in favour of fugitive businessman Nirav Modi's extradition to India, the Ministry of External Affairs (MEA) on Thursday said the government will liaise with authorities in the UK for his early extradition. The diamantaire, wanted in India on charges of fraud and money laundering in the estimated USD 2-billion Punjab National Bank (PNB) scam case, lost his legal battle against extradition on all grounds as District Judge Samuel Goozee also concluded that there are no human rights concerns that his medical needs would not be addressed as per several Indian government assurances. Replying to a query during an online media briefing, MEA spokesperson Anurag Srivastava said that since the Westminster Magistrate''s Court has recommended to the UK Home Secretary for Nirav Modi''s extradition, "the Government of India would liaise with the UK authorities for his early extradition to India." On the request of the CBI and the ED, Modi''s extradition from the UK was sought in August 2018. He was arrested and produced before the Senior District Judge at Westminster Magistrate''s court on March 20, 2019. Since then he is facing extradition proceedings while in judicial custody. The final hearing in this case was held on January 7-8, 2021, while the Westminster Magistrate''s Court in London earlier in the day pronounced that he be extradited to India to stand trial. "Dismissing the mental health concerns raised by Nirav Modi, the judge observed that Nirav Modi conspired to destroy evidence and intimidate witnesses," Srivastava said. (With inputs from agencies)

PNB scam case: India will liaise with UK for Nirav Modi's early extradition, says MEA

Fugitive diamantaire Nirav Modi will be extradited to India to stand trial, UK extradition judge ordered on Thursday.

UK Extradition judge ruled that Nirav Modi has a case to answer for in India.

Nirav Modi was arrested on an extradition warrant on March 19, 2019, and has appeared via videolink from Wandsworth Prison for a series of court hearings in the extradition case. His multiple attempts at seeking bail have been repeatedly turned down, both at the Magistrates' and High Court level, as he was deemed a flight risk.

He is the subject of two sets of criminal proceedings, with the Central Bureau of Investigation (CBI) case relating to a large-scale fraud upon PNB through the fraudulent obtaining of letters of undertaking (LoUs) or loan agreements, and the Enforcement Directorate (ED) case relating to the laundering of the proceeds of that fraud.

He also faces two additional charges of "causing the disappearance of evidence" and intimidating witnesses or "criminal intimidation to cause death, which were added on to the CBI case.

At the heart of the scheme is a conspiracy between Modi and several members of staff at PNB to siphon money out of the bank using `Letters of Undertaking`, a bank guarantee which allows a bank`s customers to raise money from the foreign branches of other Indian banks as a form of short term credit.

(With inputs from agencies)

Fugitive diamantaire Nirav Modi will be extradited to India to stand trial, UK extradition judge ordered on Thursday. UK Extradition judge ruled that Nirav Modi has a case to answer for in India.

Fugitive diamantaire Nirav Modi will be extradited to India to stand trial, UK extradition judge ordered on Thursday. UK Extradition judge ruled that Nirav Modi has a case to answer for in India. Nirav Modi was arrested on an extradition warrant on March 19, 2019, and has appeared via videolink from Wandsworth Prison for a series of court hearings in the extradition case. His multiple attempts at seeking bail have been repeatedly turned down, both at the Magistrates' and High Court level, as he was deemed a flight risk. He is the subject of two sets of criminal proceedings, with the Central Bureau of Investigation (CBI) case relating to a large-scale fraud upon PNB through the fraudulent obtaining of letters of undertaking (LoUs) or loan agreements, and the Enforcement Directorate (ED) case relating to the laundering of the proceeds of that fraud. He also faces two additional charges of "causing the disappearance of evidence" and intimidating witnesses or "criminal intimidation to cause death, which were added on to the CBI case. At the heart of the scheme is a conspiracy between Modi and several members of staff at PNB to siphon money out of the bank using `Letters of Undertaking`, a bank guarantee which allows a bank`s customers to raise money from the foreign branches of other Indian banks as a form of short term credit. (With inputs from agencies)

PNB scam case: Nirav Modi to be extradited to India, loses case in UK court

The verdict of the extradition case of fugitive diamond dealer Nirav Modi will be handed down by the UK judge next month after the Indian government and Modi`s defence lawyers made their final submissions at Westminster Magistrate's Court in London on Friday.

Judge Samuel Goozee will deliver his judgment on February 25, just under two years after Nirav Modi was arrested in London on multiple charges including defrauding the state-owned Punjab National Bank (PNB) of more than USD 2 billion.

Judge Goozee must decide if there is a `prima facie` case that Modi - the one-time billionaire and jeweller to some of the most glamorous stars in the world - not only defrauded PNB but also laundered the proceeds of that fraud and subsequently attempt to destroy crucial evidence and intimidate witnesses.

Yesterday on the penultimate day of the hearing, Modi`s lawyers have claimed that he is unfit to face solitary confinement. Today`s attention turned to the extraordinary scheme wherein Modi is alleged to have perpetrated to defraud and enrich himself and his family using the funds of one of the oldest and biggest financial institutions in India.

Helen Malcolm QC, the formidable barrister representing the Crown Prosecution Service, which in turn is representing the Indian government began the final day`s proceedings by carefully summarizing that very scheme. It was a summary that clearly made Modi visibly uncomfortable - normally subdued, Modi was seen sighing and fidgeting frequently as he appeared at the court via video link from Wandsworth Prison in south London where he has been held since his arrest.

At the heart of the scheme is a conspiracy between Modi and several members of staff at PNB to siphon money out of the bank using `Letters of Undertaking`, a bank guarantee which allows a bank`s customers to raise money from the foreign branches of other Indian banks as a form of short term credit.

Malcolm outlined how Modi set up a string of shell companies posing as third party suppliers in Hong Kong and the United Arab Emirates and then colluded with a PNB employee - Gokulnath Shetty - to obtain hundreds of LOU`s over a 6-year period.

Malcolm told the court that the alleged fraud had enriched Modi and his family. One of the shell companies - Pacific Diamonds - had at one point paid out USD 48 million dollars to Modi himself, some USD 150 million to his father and a further USD 21 million to his brother in law Deepak.

"The simple and stark fact is that Modi used three partnership companies to acquire billions of dollars worth of credit which was entirely unsecured and LoUs were issued for wholly bogus trade. While the defence claims this is a mere commercial dispute, there is a plethora of evidence to point to a ponzi-like scheme where new LoUs were used to repay old ones," Malcolm said.

Modi laid the groundwork and took various steps to ensure that the fraud would go undetected for example by registering the shell companies in the UAE`s Ajman Free Zone which does not require companies to file audited accounts.

The funds fraudulently obtained were also recycled through various other companies located in Hong Kong, India and the UAE using the very same jewellery that had made Modi a globally recognized Diamantaire.

Once the fraud was discovered at PNB, Modi and a number of accomplices scrambled to hide their tracks, Malcolm said, by perverting the course of the investigations launched by the Central Bureau of Investigation and the Enforcement Directorate.

This included relocating a number of "directors" of the shell companies from the UAE to Cairo Egypt in 2018 where they were threatened and coerced into providing witness statements exonerated Modi.

The court was told that this particular effort was led by Modi`s brother Nihal Modi, an effort that ultimately came to light after one of those forcibly detained in Cairo recorded some of the conversations between himself and Nihal Modi. One of the most explosive moments of the trial had come in early 2020 when the court was played some of those recordings.

Malcolm also told of the elaborate steps taken by Modi, his associates and several employees of the PNB in order to avoid detection - including falsifying documents and creating elaborate but ultimately fictitious paper trails for the LOU's.

In response to Modi`s defence team contends that the transactions, including the issuance of LOU`s on "verbal" contracts between Modi and the bank, were entirely legitimate and above board. Clare Montgomery QC, Modi`s lawyer, also told the court that the so-called shell companies were no such thing and were trading property.

The court had earlier been shown documents that suggested they did. Perhaps the most extraordinary moment of the final day of this extraordinary trial came when Montgomery told Judge Goozee that what transpired in Cairo, Egypt did not amount to "witness intimidation" because they were not witnesses but rather "suspects".

She told the court that Modi and or his representatives were "perfectly able and had a right to offer them advice as co-accused" in the investigations launched by the Indian government.

Apart from charges relating to defrauding PNB through the use of fraudulent loan agreements to the tune of USD 2 billion, Modi also faces charges of money laundering, destruction of evidence and witness intimidation.While Judge Goozee will rule on the February 25, Modi is expected to pursue a long and exhaustive appeals process in the UK.

The verdict of the extradition case of fugitive diamond dealer Nirav Modi will be handed down by the UK judge next month after the Indian government and Modi`s defence lawyers made their final submissions at Westminster Magistrate's Court in London on Friday.

The verdict of the extradition case of fugitive diamond dealer Nirav Modi will be handed down by the UK judge next month after the Indian government and Modi`s defence lawyers made their final submissions at Westminster Magistrate's Court in London on Friday. Judge Samuel Goozee will deliver his judgment on February 25, just under two years after Nirav Modi was arrested in London on multiple charges including defrauding the state-owned Punjab National Bank (PNB) of more than USD 2 billion. Judge Goozee must decide if there is a `prima facie` case that Modi - the one-time billionaire and jeweller to some of the most glamorous stars in the world - not only defrauded PNB but also laundered the proceeds of that fraud and subsequently attempt to destroy crucial evidence and intimidate witnesses. Yesterday on the penultimate day of the hearing, Modi`s lawyers have claimed that he is unfit to face solitary confinement. Today`s attention turned to the extraordinary scheme wherein Modi is alleged to have perpetrated to defraud and enrich himself and his family using the funds of one of the oldest and biggest financial institutions in India. Helen Malcolm QC, the formidable barrister representing the Crown Prosecution Service, which in turn is representing the Indian government began the final day`s proceedings by carefully summarizing that very scheme. It was a summary that clearly made Modi visibly uncomfortable - normally subdued, Modi was seen sighing and fidgeting frequently as he appeared at the court via video link from Wandsworth Prison in south London where he has been held since his arrest. At the heart of the scheme is a conspiracy between Modi and several members of staff at PNB to siphon money out of the bank using `Letters of Undertaking`, a bank guarantee which allows a bank`s customers to raise money from the foreign branches of other Indian banks as a form of short term credit. Malcolm outlined how Modi set up a string of shell companies posing as third party suppliers in Hong Kong and the United Arab Emirates and then colluded with a PNB employee - Gokulnath Shetty - to obtain hundreds of LOU`s over a 6-year period. Malcolm told the court that the alleged fraud had enriched Modi and his family. One of the shell companies - Pacific Diamonds - had at one point paid out USD 48 million dollars to Modi himself, some USD 150 million to his father and a further USD 21 million to his brother in law Deepak. "The simple and stark fact is that Modi used three partnership companies to acquire billions of dollars worth of credit which was entirely unsecured and LoUs were issued for wholly bogus trade. While the defence claims this is a mere commercial dispute, there is a plethora of evidence to point to a ponzi-like scheme where new LoUs were used to repay old ones," Malcolm said. Modi laid the groundwork and took various steps to ensure that the fraud would go undetected for example by registering the shell companies in the UAE`s Ajman Free Zone which does not require companies to file audited accounts. The funds fraudulently obtained were also recycled through various other companies located in Hong Kong, India and the UAE using the very same jewellery that had made Modi a globally recognized Diamantaire. Once the fraud was discovered at PNB, Modi and a number of accomplices scrambled to hide their tracks, Malcolm said, by perverting the course of the investigations launched by the Central Bureau of Investigation and the Enforcement Directorate. This included relocating a number of "directors" of the shell companies from the UAE to Cairo Egypt in 2018 where they were threatened and coerced into providing witness statements exonerated Modi. The court was told that this particular effort was led by Modi`s brother Nihal Modi, an effort that ultimately came to light after one of those forcibly detained in Cairo recorded some of the conversations between himself and Nihal Modi. One of the most explosive moments of the trial had come in early 2020 when the court was played some of those recordings. Malcolm also told of the elaborate steps taken by Modi, his associates and several employees of the PNB in order to avoid detection - including falsifying documents and creating elaborate but ultimately fictitious paper trails for the LOU's. In response to Modi`s defence team contends that the transactions, including the issuance of LOU`s on "verbal" contracts between Modi and the bank, were entirely legitimate and above board. Clare Montgomery QC, Modi`s lawyer, also told the court that the so-called shell companies were no such thing and were trading property. The court had earlier been shown documents that suggested they did. Perhaps the most extraordinary moment of the final day of this extraordinary trial came when Montgomery told Judge Goozee that what transpired in Cairo, Egypt did not amount to "witness intimidation" because they were not witnesses but rather "suspects". She told the court that Modi and or his representatives were "perfectly able and had a right to offer them advice as co-accused" in the investigations launched by the Indian government. Apart from charges relating to defrauding PNB through the use of fraudulent loan agreements to the tune of USD 2 billion, Modi also faces charges of money laundering, destruction of evidence and witness intimidation.While Judge Goozee will rule on the February 25, Modi is expected to pursue a long and exhaustive appeals process in the UK.

Final verdict on fugitive businessman Nirav Modi's fate to be announced on Feb 25

The Enforcement Directorate on Thursday filed its first charge sheet in the PNB Scam worth over $2 billion.

The 12,000-page complaint filed by the ED is issued against diamantaire Nirav Modi and his associates at a special court in Mumbai.

The charge sheet has been filed under various sections of the Prevention of Money Laundering Act (PMLA).&nbsp;

The prosecution complaint (charge sheet)&nbsp;includes the details of the attachments made by&nbsp;Nirav Modi and his associates.

Two other charge sheets were filed by the CBI in the matter earlier&nbsp;this month.

The Enforcement Directorate had recently summoned Nirav Modi's family for questioning in the PNB scam after his repeated failures in appearing before the court despite several summonses.&nbsp;

The prosecution complaint (charge sheet) filed against Nirav Modi and his associates includes the details of the attachments made by the agency against them

The Enforcement Directorate on Thursday filed its first charge sheet in the PNB Scam worth over $2 billion. The 12,000-page complaint filed by the ED is issued against diamantaire Nirav Modi and his associates at a special court in Mumbai. The charge sheet has been filed under various sections of the Prevention of Money Laundering Act (PMLA). The prosecution complaint (charge sheet) includes the details of the attachments made by Nirav Modi and his associates. Two other charge sheets were filed by the CBI in the matter earlier this month. The Enforcement Directorate had recently summoned Nirav Modi's family for questioning in the PNB scam after his repeated failures in appearing before the court despite several summonses.

PNB Scam: ED files first chargesheet against Nirav Modi, associates

Congress president Rahul Gandhi today alleged that Prime Minister Narendra Modi knew the main accused in the Punjab National Bank (PNB) scam for long, but remained silent when they stole "farmers' money" and fled the country.

He accused the NDA government of ignoring farmers while waiving the loans of "15 richest people" in the country.

Gandhi, who was addressing a rally of farmers and tribal people at Sitapur in Chhattisgarh, promised a farm loan waiver across the country if the Congress returned to power in 2019.

"The UPA government ran MNREGA scheme at a cost of Rs 35,000 core. The same amount was stolen by (jeweller and PNB scam accused) Nirav Modi from the farmers of the country. The entire money of MNREGA was stolen by a single man, but our prime minister did not utter a single word," he said.

"The PM had known Nirav Modi and (the scam co-accused) Mehul Choksi. It was years-old relation," Gandhi alleged.

Farmers wanted loan waiver because the BJP government was giving them neither the minimum support price nor bonus, he said, adding that even the crop insurance scheme was not working.

"The Centre waived the loans of industrialists, but is not ready to take any step for farmers," Gandhi said.

When the Congress government is voted to power in 2019, it will waive loans of farmers in the entire country within 10 days of coming to power, he asserted.

Food processing plants will be set up and farmers will be ensured good returns on their produce, the Congress president said.

"When prime minister Modi was campaigning in 2014, he had promised to provide jobs to two crore youths every year, to deposit Rs 15 lakh in bank accounts of people and provide handsome returns to farmers on their produce. But nothing has happened. Forget Rs 15 lakh, not even Rs 15 have been deposited in any account," Gandhi said.

"When the UPA was in power, minimum support price was increased by 15 per cent every year. But during the NDA regime it wasn't hiked by even five per cent," he said.

"Unemployment is rising. Farmers are committing suicide. Dalits and tribals are being attacked and facing repression. When nobody is benefiting from this government, who is getting the benefit?" he asked.

Gandhi said he had personally met Modi and asked him to waive crop loans, but the prime minister did not give any reply.

"For whom this BJP and RSS machinery is working? I will give you an example -- farmers in the entire country wanted to get their loans waived, but the government ignored them and Rs 2.5 lakh crore worth of loans of the 15 richest people were waived," Gandhi alleged.

Referring to the press conference held by senior-most Supreme Court judges on issues related to the apex court earlier this year, Gandhi said, "The BJP-led NDA government has snatched the rights of judges. Where will people get justice when Supreme Court judges themselves are asking for justice from people?"

"Judges said they were under pressure from the prime minister and (BJP chief) Amit Shah. The prime minister was silent on the issue," Gandhi said.

The Congress would form government in Chhattisgarh by defeating the ruling BJP in the coming elections, he said.

While demonetisation led to job losses, small traders had to bear the brunt of "Gabbar Singh Tax", he said, referring to the Goods and Services Tax (GST).

Farmers, youths, tribals and small traders in the state will benefit from the Congress government's policies, he said.

Speaking at Kotmi in Bilaspur district later in the evening, Gandhi took a jibe at the prime minister's 'Mann ki Baat' radio programme.

"You listen to the prime minister's speech. He speaks Man ki Baat. We (the Congress) do not want to tell you our 'Mann ki Baat', but want to listen to yours. We want to work on the strength of your 'Mann ki Baat," the Congress president told the gathering.

"If we are in politics, it is for you. We are fighting for you because you have built this country. Farmers have built this country. Adivasis, Dalits and women have made sacrifices, but when this country got money, it is being snatched from you and given to 10-15 richest people," he said.

The Congress president, who arrived on a two-day tour of Chhattisgarh today, addressed three public meetings during the day.&nbsp 
 
&nbsp

Gandhi, who was addressing a rally of farmers and tribal people at Sitapur in Chhattisgarh, promised a farm loan waiver across the country if the Congress returned to power in 2019.

Congress president Rahul Gandhi today alleged that Prime Minister Narendra Modi knew the main accused in the Punjab National Bank (PNB) scam for long, but remained silent when they stole "farmers' money" and fled the country. He accused the NDA government of ignoring farmers while waiving the loans of "15 richest people" in the country. Gandhi, who was addressing a rally of farmers and tribal people at Sitapur in Chhattisgarh, promised a farm loan waiver across the country if the Congress returned to power in 2019. "The UPA government ran MNREGA scheme at a cost of Rs 35,000 core. The same amount was stolen by (jeweller and PNB scam accused) Nirav Modi from the farmers of the country. The entire money of MNREGA was stolen by a single man, but our prime minister did not utter a single word," he said. "The PM had known Nirav Modi and (the scam co-accused) Mehul Choksi. It was years-old relation," Gandhi alleged. Farmers wanted loan waiver because the BJP government was giving them neither the minimum support price nor bonus, he said, adding that even the crop insurance scheme was not working. "The Centre waived the loans of industrialists, but is not ready to take any step for farmers," Gandhi said. When the Congress government is voted to power in 2019, it will waive loans of farmers in the entire country within 10 days of coming to power, he asserted. Food processing plants will be set up and farmers will be ensured good returns on their produce, the Congress president said. "When prime minister Modi was campaigning in 2014, he had promised to provide jobs to two crore youths every year, to deposit Rs 15 lakh in bank accounts of people and provide handsome returns to farmers on their produce. But nothing has happened. Forget Rs 15 lakh, not even Rs 15 have been deposited in any account," Gandhi said. "When the UPA was in power, minimum support price was increased by 15 per cent every year. But during the NDA regime it wasn't hiked by even five per cent," he said. "Unemployment is rising. Farmers are committing suicide. Dalits and tribals are being attacked and facing repression. When nobody is benefiting from this government, who is getting the benefit?" he asked. Gandhi said he had personally met Modi and asked him to waive crop loans, but the prime minister did not give any reply. "For whom this BJP and RSS machinery is working? I will give you an example -- farmers in the entire country wanted to get their loans waived, but the government ignored them and Rs 2.5 lakh crore worth of loans of the 15 richest people were waived," Gandhi alleged. Referring to the press conference held by senior-most Supreme Court judges on issues related to the apex court earlier this year, Gandhi said, "The BJP-led NDA government has snatched the rights of judges. Where will people get justice when Supreme Court judges themselves are asking for justice from people?" "Judges said they were under pressure from the prime minister and (BJP chief) Amit Shah. The prime minister was silent on the issue," Gandhi said. The Congress would form government in Chhattisgarh by defeating the ruling BJP in the coming elections, he said. While demonetisation led to job losses, small traders had to bear the brunt of "Gabbar Singh Tax", he said, referring to the Goods and Services Tax (GST). Farmers, youths, tribals and small traders in the state will benefit from the Congress government's policies, he said. Speaking at Kotmi in Bilaspur district later in the evening, Gandhi took a jibe at the prime minister's 'Mann ki Baat' radio programme. "You listen to the prime minister's speech. He speaks Man ki Baat. We (the Congress) do not want to tell you our 'Mann ki Baat', but want to listen to yours. We want to work on the strength of your 'Mann ki Baat," the Congress president told the gathering. "If we are in politics, it is for you. We are fighting for you because you have built this country. Farmers have built this country. Adivasis, Dalits and women have made sacrifices, but when this country got money, it is being snatched from you and given to 10-15 richest people," he said. The Congress president, who arrived on a two-day tour of Chhattisgarh today, addressed three public meetings during the day.

PM kept mum as Nirav Modi stole farmers' money: Rahul Gandhi

Proper implementation of the Goods and Services Tax (GST) in India can be worked upon and is not an "unfixable problem", former RBI governor Raghuram Rajan has said, reiterating that demonetisation was "not a well-planned, well thought-out" move.

With the Modi government bringing in ambitious reforms like GST and demonetisation, Rajan said it would be good if such measures were better implemented.

"On the Goods and Services Tax, we will figure it out eventually. It will be nice if we could implement much better than we do. But it's (GST) not an unfixable problem. We can work on it. I wouldn't give up hope at this point on that," Rajan told an audience at the Harvard Kennedy School in Cambridge yesterday.

Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at The University of Chicago's Booth School of Business, gave the 2018 Albert H Gordon Lecture on the topic 'Leverage, Financial Crises, and Policies to Raise Economic Growth'. He was asked about the "shoddy implementation" of big-ticket reforms like GST and demonetisation in India.

On demonetisation, Rajan rejected the claim that the Reserve Bank of India had not been consulted by the government before it went on to declare 1,000 and 500-rupee currency notes as illegal tender in November 2016. He however reiterated that the move to cancel 87.5 per cent of the currency value was "not a good idea".

"I didn't ever say that I wasn't consulted (on demonetisation). In fact, I have made it quite clear that we were consulted and we didn't think it was a good idea," Rajan said.

He said demonetisation "was not a well-planned, well thought-out, useful exercise and I told the government that when the idea was first mooted," he said adding that any macro-economist would say that if 87.5 per cent of the currency is being demonetised, then it better be made sure that a similar amount of currency is printed and ready to be put back in circulation.

"India went into it without having done that. It had a negative economic impact but also the idea was that somehow people who had money stored in their basements without having paid taxes on it would overnight see religion and come to the government and say 'sorry we were hiding this stuff, let me pay taxes on it'," Rajan said, calling it a "naive view".

"Anybody who knows India, knows that very quickly we find ways around the system," he said adding that with "essentially" all the money that was demonetised coming back into the system, the exercise did not have the direct effect that was sought.

While the longer term impact of demonetisation is yet to be seen, its negative economic impact included people not having currency, not being able to pay and economic activity plummeting especially in the informal sector. 
 
"There may be some longer term impact that people think that if this sort of thing happens then the government is serious about collecting taxes. There may be greater tax payments but we still have to see strong evidence that that is true," he said.

Rajan also expressed concern that a lot of people probably lost their jobs due to demonetisation but that has not been counted well as it would be mostly in the informal sector.

"The positive impacts (of demonetisation) are out there in the future. We have no idea whether they will be important. To my mind it was not a policy that was useful at that time," he said.

To a suggestion that demonetisation could have positively impacted growth, Rajan said "you would have to find a new economic theory to explain how it helped the economy".

He said most estimates of the cost of demonetisation vary between 1.5-2 per cent of the GDP.

"It would be a really die-hard government advocate who would say that the growth benefits of demonetisation were immediate," he said.

"Most of the supporters of the move would say that the benefits of the move are coming by changing the incentive to pay taxes. I would say yes, we will have to wait and see whether that in fact is true," he said.

On the problem of non-performing assets and making a reference to the Nirav Modi-PNB scandal, Rajan said it is worrisome that some Indian banks have antiquated systems.

A part of the Punjab National Bank scam was cyber-related and there is a need to go into the details of how the fraud came to be, he said.

"It turns out that we don't need to be really clever in the Indian system to make away with a billion dollars. Some of these banks have antiquated systems also....Your worry is that the systems are not adequate to prevent rogue dealers, rogue employees colluding and making off with stuff. That is the fraud part," he said.

He added that bad loans do not necessarily come from fraud, they come from "irrational exuberance".

 
&nbsp

Proper implementation of the Goods and Services Tax (GST) in India can be worked upon and is not an 'unfixable problem', former RBI governor Raghuram Rajan has said, reiterating that demonetisation was 'not a well-planned, well thought-out' move

Proper implementation of the Goods and Services Tax (GST) in India can be worked upon and is not an "unfixable problem", former RBI governor Raghuram Rajan has said, reiterating that demonetisation was "not a well-planned, well thought-out" move. With the Modi government bringing in ambitious reforms like GST and demonetisation, Rajan said it would be good if such measures were better implemented. "On the Goods and Services Tax, we will figure it out eventually. It will be nice if we could implement much better than we do. But it's (GST) not an unfixable problem. We can work on it. I wouldn't give up hope at this point on that," Rajan told an audience at the Harvard Kennedy School in Cambridge yesterday. Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at The University of Chicago's Booth School of Business, gave the 2018 Albert H Gordon Lecture on the topic 'Leverage, Financial Crises, and Policies to Raise Economic Growth'. He was asked about the "shoddy implementation" of big-ticket reforms like GST and demonetisation in India. On demonetisation, Rajan rejected the claim that the Reserve Bank of India had not been consulted by the government before it went on to declare 1,000 and 500-rupee currency notes as illegal tender in November 2016. He however reiterated that the move to cancel 87.5 per cent of the currency value was "not a good idea". "I didn't ever say that I wasn't consulted (on demonetisation). In fact, I have made it quite clear that we were consulted and we didn't think it was a good idea," Rajan said. He said demonetisation "was not a well-planned, well thought-out, useful exercise and I told the government that when the idea was first mooted," he said adding that any macro-economist would say that if 87.5 per cent of the currency is being demonetised, then it better be made sure that a similar amount of currency is printed and ready to be put back in circulation. "India went into it without having done that. It had a negative economic impact but also the idea was that somehow people who had money stored in their basements without having paid taxes on it would overnight see religion and come to the government and say 'sorry we were hiding this stuff, let me pay taxes on it'," Rajan said, calling it a "naive view". "Anybody who knows India, knows that very quickly we find ways around the system," he said adding that with "essentially" all the money that was demonetised coming back into the system, the exercise did not have the direct effect that was sought. While the longer term impact of demonetisation is yet to be seen, its negative economic impact included people not having currency, not being able to pay and economic activity plummeting especially in the informal sector. "There may be some longer term impact that people think that if this sort of thing happens then the government is serious about collecting taxes. There may be greater tax payments but we still have to see strong evidence that that is true," he said. Rajan also expressed concern that a lot of people probably lost their jobs due to demonetisation but that has not been counted well as it would be mostly in the informal sector. "The positive impacts (of demonetisation) are out there in the future. We have no idea whether they will be important. To my mind it was not a policy that was useful at that time," he said. To a suggestion that demonetisation could have positively impacted growth, Rajan said "you would have to find a new economic theory to explain how it helped the economy". He said most estimates of the cost of demonetisation vary between 1.5-2 per cent of the GDP. "It would be a really die-hard government advocate who would say that the growth benefits of demonetisation were immediate," he said. "Most of the supporters of the move would say that the benefits of the move are coming by changing the incentive to pay taxes. I would say yes, we will have to wait and see whether that in fact is true," he said. On the problem of non-performing assets and making a reference to the Nirav Modi-PNB scandal, Rajan said it is worrisome that some Indian banks have antiquated systems. A part of the Punjab National Bank scam was cyber-related and there is a need to go into the details of how the fraud came to be, he said. "It turns out that we don't need to be really clever in the Indian system to make away with a billion dollars. Some of these banks have antiquated systems also....Your worry is that the systems are not adequate to prevent rogue dealers, rogue employees colluding and making off with stuff. That is the fraud part," he said. He added that bad loans do not necessarily come from fraud, they come from "irrational exuberance".

Implementation of GST not 'unfixable' problem: Ex RBI governor Raghuram Rajan

In a caustic attack on the Centre, the Shiv Sena Wednesday said the violence during a nationwide bandh by Dalits to protest the softening of provisions of the SC/ST Act is a reflection of a "weak" and "selfish leadership".

It also raked up the multi-crore Punjab National Bank scam, saying that while diamond jeweller Nirav Modi "looted" the nation, the present government was "breaking" the country.

It said coming out on the streets against an order of the apex court was akin to going against the ideology of Dr B R Ambedkar - the architect of the Indian Constitution.

"Incidents of violence happen when the leadership is weak and selfish," the Sena said in a hard-hitting editorial in party mouthpiece 'Saamana'.

"The country had once been divided in the name of religion. If it is once again being broken apart in the name of caste, where is Prime Minister Narendra Modi and what is he doing?" it asked.

At least 11 people died and several others were injured in the 'Bharat bandh' called on Monday by Dalit outfits to protest the softening of certain provisions of the SC/ST (Prevention of Atrocities) Act.

On BJP's allegation that the Congress was "fuelling tension" in society with an eye on polls, the Sena said if some are claiming that Dalits have been misled into coming out on the streets to protest, it would also hold true for riots in Asansol (West Bengal), where a party is allegedly fanning the unrest for its political gains.

The Asansol-Raniganj belt had witnessed clashes between two groups over Ram Navami celebrations, resulting in the death of one person. Two police officers were also injured in the clashes.

"Creating a social divide and fanning riots for the sake of votes is political corruption. Nirav Modi looted the nation, however, the present dispensation is breaking the nation," the Sena said, lashing out at the ruling NDA.

It wondered what was wrong with the Supreme Court ruling that there should be an investigation before an arrest so that the Act was not misused.

"The SC has no intentions to dilute the Atrocities Act but just wants to ensure it is not misused. There is nothing wrong in that," it said.

"Coming out on the streets against the SC order is like going against the ideology of Dr Babasaheb Ambedkar," the Sena opined.

It said 25 years back, there was a massive unrest in Ayodhya and today, when the 'Modi-Shah government' is in power, it did not take any decision on the Ram temple, except pushing the issue to the Supreme Court.

"The country's politics is at a dangerous stage now. If attempts are made to not let the courts work independently, then we are facing much more difficult times," it cautioned.

The Centre has again knocked the doors of the SC with a review petition. This is not the sign of a strong leadership, it said.

If PM Modi is famous among the masses, he should have made attempts to stop Dalits from indulging in violence, said the Sena, an ally of the BJP at the Centre and in Maharashtra.

Mahatma Gandhi and Jawaharlal Nehru did not care about their lives and went amongst rioters and even heard abuses, it noted.

"Even the current prime minister and his ministers should have done this. Filing a review petition is like running away from the situation and insulting Dr Babasaheb Ambedkar," the Sena opined.&nbsp

"Incidents of violence happen when the leadership is weak and selfish," the Sena said in a hard-hitting editorial in party mouthpiece 'Saamana'.

In a caustic attack on the Centre, the Shiv Sena Wednesday said the violence during a nationwide bandh by Dalits to protest the softening of provisions of the SC/ST Act is a reflection of a "weak" and "selfish leadership". It also raked up the multi-crore Punjab National Bank scam, saying that while diamond jeweller Nirav Modi "looted" the nation, the present government was "breaking" the country. It said coming out on the streets against an order of the apex court was akin to going against the ideology of Dr B R Ambedkar - the architect of the Indian Constitution. "Incidents of violence happen when the leadership is weak and selfish," the Sena said in a hard-hitting editorial in party mouthpiece 'Saamana'. "The country had once been divided in the name of religion. If it is once again being broken apart in the name of caste, where is Prime Minister Narendra Modi and what is he doing?" it asked. At least 11 people died and several others were injured in the 'Bharat bandh' called on Monday by Dalit outfits to protest the softening of certain provisions of the SC/ST (Prevention of Atrocities) Act. On BJP's allegation that the Congress was "fuelling tension" in society with an eye on polls, the Sena said if some are claiming that Dalits have been misled into coming out on the streets to protest, it would also hold true for riots in Asansol (West Bengal), where a party is allegedly fanning the unrest for its political gains. The Asansol-Raniganj belt had witnessed clashes between two groups over Ram Navami celebrations, resulting in the death of one person. Two police officers were also injured in the clashes. "Creating a social divide and fanning riots for the sake of votes is political corruption. Nirav Modi looted the nation, however, the present dispensation is breaking the nation," the Sena said, lashing out at the ruling NDA. It wondered what was wrong with the Supreme Court ruling that there should be an investigation before an arrest so that the Act was not misused. "The SC has no intentions to dilute the Atrocities Act but just wants to ensure it is not misused. There is nothing wrong in that," it said. "Coming out on the streets against the SC order is like going against the ideology of Dr Babasaheb Ambedkar," the Sena opined. It said 25 years back, there was a massive unrest in Ayodhya and today, when the 'Modi-Shah government' is in power, it did not take any decision on the Ram temple, except pushing the issue to the Supreme Court. "The country's politics is at a dangerous stage now. If attempts are made to not let the courts work independently, then we are facing much more difficult times," it cautioned. The Centre has again knocked the doors of the SC with a review petition. This is not the sign of a strong leadership, it said. If PM Modi is famous among the masses, he should have made attempts to stop Dalits from indulging in violence, said the Sena, an ally of the BJP at the Centre and in Maharashtra. Mahatma Gandhi and Jawaharlal Nehru did not care about their lives and went amongst rioters and even heard abuses, it noted. "Even the current prime minister and his ministers should have done this. Filing a review petition is like running away from the situation and insulting Dr Babasaheb Ambedkar," the Sena opined.

Dalit violence a sign of weak and selfish leadership: Sena