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By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

Raj Thackeray seeks ‘accountability’

Mumbai: Prime Minister Narendra Modi’s call for “austerity” triggered a blistering political broadside from Maharashtra Navnirman Sena chief Raj Thackeray, who accused the Centre of hypocrisy, economic mismanagement, reckless political extravagance and attempting to shift the burden of its failures onto ordinary citizens. In a scathing statement, Raj questioned the moral authority of the PM to preach sacrifices to the country while the ruling establishment indulges in lavish political...

Raj Thackeray seeks ‘accountability’

Mumbai: Prime Minister Narendra Modi’s call for “austerity” triggered a blistering political broadside from Maharashtra Navnirman Sena chief Raj Thackeray, who accused the Centre of hypocrisy, economic mismanagement, reckless political extravagance and attempting to shift the burden of its failures onto ordinary citizens. In a scathing statement, Raj questioned the moral authority of the PM to preach sacrifices to the country while the ruling establishment indulges in lavish political roadshows, massive convoys, flower-shower spectacles, expensive election campaigns across the country and high-profile foreign trips. On the PM’s recent multi-pronged appeal asking Indians to slash gold purchases and fuel consumption, avoid foreign travel, adopt electric vehicles or adopt Work From Home, Raj said the government was willy-nilly readying the country for an impending economic crisis but refusing to accept the blame for creating it. “Will you acknowledge that a mistake was made by you, apologise for it, and pledge that henceforth, neither you nor anyone else will engage in such conduct? Why should the public be made to carry the financial load for your blunders?” demanded Raj sharply. Sudden Warnings The MNS chief argued that high crude oil prices cannot be blamed for the present economic distress, as there were many precedents in the recent past when global crude rates hovered in the $90-$100 / barrel range. He listed the scenario witnessed during the 2008 recession, the Arab Spring (2011-2012), again in 2013-2014, and finally when the OPEC cut production (2022-2023) to buttress his contentions. However, in those crises, neither ex-PM Manmohan Singh nor Modi himself issued such austerity appeals, and wondered “why such warnings were suddenly being sounded now” for the country. He demanded answers over the high fuel prices in India owing to taxes, and alleged that even when crude oil prices had plummeted to $ 60-$ 65, petrol and diesel were sold at exorbitant rates to Indians. “Lakhs of crores of rupees were collected from people - where did that money go? What happened to it?” Raj asked bluntly, in what is viewed as his fiercest attack on the government till date. Dual Face Targeting the Bharatiya Janata Party’s ‘dual standards’, Raj accused it of ridiculing ‘Revdi culture’ publicly while simultaneously doling out massive freebies during Assembly elections in West Bengal, Bihar and Maharashtra to lure voters. “The ‘Ladki Bahin’ before the Maharashtra 2024 Assembly elections has brought the state economy on the verge of collapse. Rather than truly empowering women, they were given meagre sums of money which was again clawed back through high inflation. If the state and national economies are in such a dire condition, will the PM now firmly declare a ban on all such politically motivated freebies,” asked Raj. He slammed the BJP for wasting enormous quantities of fuel during the recent poll campaigns in four states to ferry crowds for mega-rallies, but citizens are now being advised to sacrifice their fuel consumption. Hike in Offing Raj said with WFH and EV appeals, if the government was mentally preparing the people for another steep hike in fuel prices, the masses would anyway be compelled to reduce consumption as they can no longer afford it. He said it is time to admit that while the Indian economy is outwardly robust, inwardly fragile, the government should not exploit the Iran-Israel-US war as a convenient scapegoat to divert attention. “In your tenure, the Indian Rupee (INR) was devalued significantly, why? In the past 10 years, three different RBI Governors have quit, what was the reason, tell the nation. Ex-RBI Governor and then PM Manmohan Singh, himself a renowned economist, held serious discussions with financial experts and heeded them. We have heard all your ‘Mann Ki Baat’, now you should listen to the genuine economic masters and the masses,” Raj exhorted. Calling upon the PM to convene a Parliament special session to inform the country on the real state of the economy and concrete measures to tackle the challenges, Raj reminded the government that “we are not your enemies, but asking questions is our duty.” NCP (SP) gallops to austerity A political protest by the Nationalist Congress Party (SP) against the government’s austerity drive, became something of a traffic-stopper in Thane. Discarding air-conditioned SUVs or sedans, NCP (SP) General Secretary Dr Jitendra Awhad came astride a snow-white horse, while some other party leaders trailed on a horse-drawn ‘tanga’ and a ‘bail-gadi’ (bullock cart), raising anti-government slogans. “This is what we will come to soon… The economic crises will worsen in the coming days. We may be forced to gallop to Mantralaya or other places on horses and in carts. The government’s reverse development model will take us 2000-years back,” warned Dr. Awhad, as the afternoon traffic halted and hundreds crowded for a glimpse of the mini-procession. Patting his mount, he predicted a massive hike in fuel prices and other essentials, commuting on beasts of burden, or worse. Even if people shifted to animal transport, he wondered how they would feed their four-legged creatures with minimal resources. A party worker carried a placard proclaiming: “Next Budget: One Horse Per Family Scheme”, as some pedestrians wondered if the authorities would introduce exclusive ‘bullock cart or horse-tanga lanes” on the roads, or whether FASTag would be compulsory for these creatures. Pawar demands all-party meet Amid a nationwide furore over the Centre’s austerity appeals and concerns over global economic stability, Nationalist Congress Party (SP) President Sharad Pawar urged Prime Minister Narendra Modi to convene an all-party meeting to discuss the country’s economy and evolving international challenges. Pawar said that the PM’s recent announcements - made in view of the ‘unstable and warlike situation’ in the Middle East - could have ‘far-reaching consequences’ on the Indian economy and has already triggered anxiety among ordinary citizens, industry stakeholders and investors alike. “The sudden nature of these announcements has created an atmosphere of unease among the common people, the industry-business sector as well as investors. This situation is certainly a cause for concern,” Pawar said. The NCP (SP) supremo’s appeal came against the backdrop of rising tensions owing to the Middle-East war, fears of escalating crude oil prices, the volatility in global markets coupled with Modi’s call urging citizens' restraint by embracing austerity measures. The PM’s wide-ranging appeal includes reducing fuel consumption, slashing gold purchases for a year, avoiding foreign travel, opting for electric vehicles and adopting Work From Home – triggering a nation-wide debate since the past two days. The NCP (SP) supremo emphasised that the gravity of the prevailing international situation called for a more ‘consultative and inclusive approach’ from the Bharatiya Janata Party government to build a consensus on economic and policy responses. “Given the current international situation, the central government must prioritize greater sensitivity and broad consultations. Considering the seriousness of this issue, the PM should take the lead to call an all-party meeting as involving leaders from all political parties in the decision-making process on matters of national interest is extremely essential for the welfare of the country,” urged Pawar. Besides the political consultations, the ex-union minister exhorted the PM for urgent engagement with economists, industrialists and domain experts to thoroughly review and assess the potential fallout of international developments on India’s economy. Such a comprehensive discussion on future economic policies was crucially required to reassure the public and restore investor confidence. “Building confidence and stability among the people of the country should be the government’s topmost priority in the current circumstances. This is our firm stand,” Pawar asserted.

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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