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By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

MVA accuses Mahayuti of ‘banditry, betrayal’

Mumbai: The simmering political storm over the Mahayuti government’s ‘Mukhyamantri Majhi Ladi Bahin Yojana’ intensified with the Maharashtra Vikas Aghadi (MVA) taking the recent CAG Report’s cautionary signals on state finances, to question if the state regime is a ‘gang of bandits’. State Congress President Harshwardhan Sapkal, Nationalist Congress Party (SP) National Spokesperson Clyde Crasto and Shiv Sena (UBT) MP Sanjay Raut attacking the government over the CAG revelations pointing to Rs...

MVA accuses Mahayuti of ‘banditry, betrayal’

Mumbai: The simmering political storm over the Mahayuti government’s ‘Mukhyamantri Majhi Ladi Bahin Yojana’ intensified with the Maharashtra Vikas Aghadi (MVA) taking the recent CAG Report’s cautionary signals on state finances, to question if the state regime is a ‘gang of bandits’. State Congress President Harshwardhan Sapkal, Nationalist Congress Party (SP) National Spokesperson Clyde Crasto and Shiv Sena (UBT) MP Sanjay Raut attacking the government over the CAG revelations pointing to Rs 3,541-cr excess spending plus significant shortcomings in financial management, budget estimation and expenditure control. Sapkal slammed the Mahayuti for allegedly committing a financial fraud of Rs 3,500-cr, while Crasto termed the removal of 92-lakh women beneficiaries as ‘betrayal’ and Raut accusing that the scheme was launched only to collect the votes of ‘Ladki Bahin’ in the 2024 Assembly elections. The Congress chief reiterated that a potential welfare scheme degenerated into another vehicle for corruption as the “step-brothers in power have looted their own beloved sisters”. “After looting every sector of the government, they have plundered the ‘Ladmi Bahin’ scheme… Is this a government or a gang of bandits,” demanded Sapkal sharply. Various Reasons Terming the government’s move to delete 38 pc (92 lakh) ‘Ladki Bahins’ from the scheme for various reasons as ‘fooling’ the women of Maharashtra to grab their votes. “They are citing different excuses for this act… Then how were they eligible before the elections, they took the votes, gave them money for so long, and now they are betraying them,” said an irked Crasto. Sapkal pointed out how, as per the CAG Report, an amount of Rs. 29,693-cr was budgeted for the scheme, but the government spent over Rs 3,500-cr beyond the sanctioned amount without maintaining proper records or accounts, and unsolicited withdrawals. Schemes Sacrificed “Spending on housing had fallen by 54 pc, and expenditure on water supply-sanitation slashed by nearly 32 pc. The CAG had cautioned against prioritizing the ‘Ladki Bahin’ scheme at the cost of other critical infrastructure projects that could hit long-term sustainability of public services,” Sapkal pointed out. He further stated that an amount of Rs 3,490-cro intended for the ‘Lek Ladki’ scheme (beloved daughters, launched in Oct. 2023) from economically backward families was allegedly diverted to ‘Ladki Bahin’, and earlier funds from the Social Justice Department were also rerouted. Raut and other SS (UBT) leaders raised questions on the government’s financial management as the CAG’s findings vindicate their stance over how the ‘Ladki Bahin’ scheme was launched hastily for reaping a rich electoral harvest in November 2024. Several NCP (SP) leaders demanded a detailed explanation for the excess expenditure red-flagged by the CAG, deflecting funds from other projects to ‘Ladki Bahin’ and pinning accountability for all such irregularities. The MVA allies urged the Mahayuti to present a comprehensive report on the scheme and fixing accountability in the legislature while ensuring that genuine beneficiaries are not deprived of the assistance. Major lapses in fiscal discipline Among other things, the Comptroller and Auditor General (CAG) Report of 2024-2025, pinpointed an excess spend of Rs. 3,541-cr, plus major lapses in fiscal discipline over the flagship ‘Ladki Bahin’ scheme. It said that the Women and Child Development Department spent Rs. 33,237 cr against the sanctioned Rs. 29,693-cr – or, Rs. 3,541-cr extra – without providing a proper explanation for the overspend. Announced with great fanfare barely months ahead of the 2024 Assembly polls, the ‘Ladki Bahin’ scheme promised a monthly dole of Rs 1,500 - with a promise to hike it to Rs 2,100 per month – to eligible women, if the Mahayuti was returned to power. It emerged the Mahayuti’s winning initiative, helped strengthen its support among the women, especially rural voters and enabled the coalition romp home – barely six months after it was badly mauled in the Parliament elections of 2024.

Lateral upgrade to ailing annihilation

Updated: Oct 21, 2024

Lateral upgrade to ailing annihilation

Being the first person from the private sector to be appointed as chairperson of Securities and Exchange Board of India (SEBI) as part of the government’s lateral initiative, Madhabi Puri Buch also holds the honour of being the first woman to hold the top post as capital market regulator.

But the laurels that the former private sector banker enjoyed in her earlier stint with ICICI Bank, was marred with allegations that she and her husband were having a stake in offshore entities, which were used to artificially inflate shares of Adani group companies.

Terming the allegation as `character assassination, Buch clarified that all disclosures have already been furnished and the fund in question did not invest in any securities involving the Adani group.

When it rains, it pours. This allegation was subsequently followed by Congress Party allegation that Buch had received salary and post-retirement benefits from ICICI Bank after she quit the private sector bank.

In its clarification to the stock exchanges, ICICI Bank asserted that the payments made to Buch were purely retirement benefits after her exit from the bank and they were neither salary nor employee stock options.

Prior to these allegations, Buch tenure at SEBI was all about bringing in quick reforms on operational issues by changing the format of consultation paper to bring in larger responses digitally. Being data savvy, the rationale of her decisions were democratic based on big data analysis derived from the responses received to the consultation papers.

Further she bifurcated the duties of the SEBI staff between operations and enforcement, which were done by the same persons earlier. Having worked for the private sector in the capital market domain space, Buch had a better understanding of the subject compared to officers from the administrative service in the past that reflected even in her orders as a whole-time director at SEBI before becoming the chairperson. As a whole time director at SEBI, her orders on adjudication issues were more directional to the capital market space, according to experts in the compliance space. She was also quick to revamp the old provisions of the 90s at SEBI.

Being tech and data savvy, Buch enhanced regulatory surveillance and detection of market manipulation, insider trading and fraud while also emphasizing on strengthening corporate governance by introducing stricter rules for independent directors and enhancing disclosures for related-party transactions.

To put in perspective, the annual report of the capital market regulator in the just concluded financial year revealed that the number of investigations related to insider trading jumped to 175 in 2023-24 from 85 in the preceding year while probes related to front running jumped over three times to 83 from 24 in the preceding year.

Transparency in mutual funds by implementing measures to protect retail investors along with tightening norms for initial public offers, particularly in the SME platforms were some of her other positive initiatives including confirmation of denial of any market rumours within 24 hours for the top 100 listed companies which will be extended to top 250 companies from December 1. However increased transparency and compliance with tightening regulations led to increased operational costs for the market participants and hence faced resistance from certain quarters. Born in 1966, Buch completed her primary education in Mumbai and graduated with specialization in Mathematics from Delhi and later obtained a management degree from Indian Institute of Management, Ahmedabad. In between, she got engaged to Dhawal Buch, a director at a consumer goods multinational at the age of eighteen and got married at the age of 21.

Besides ICICI Bank, Buch also worked as a lecturer at a college in England, worked at Greater Pacific Capital in Singapore and ICICI Securities as its CEO. She also worked as executive director on several private sector companies and as a consultant for New Development Bank (Brics Bank).

What now remains to be seen, is whether Buch, who survived the 26/11 terror attack when she along with her husband, was attending a meeting at Taj, be able to overcome the current ordeal. Keeping fingers crossed for the times to come.

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