A man who holds his own: Meet Anil Kumar Sinha, the new CBI director

For civil servants in Bihar, 2006-07 were golden years. Nitish Kumar had been newly installed as Chief Minister and he was determined to get the bureaucracy to become a political force multiplier and get it to – well, just do its job.

Anil Kumar Sinha,  then Additional Director General of Police, Headquarters (ADGP Hq) was one such officer, picked by Nitish Kumar to help him clean out the Augean stables. Eight months after he became Chief Minister, Kumar ordered an FIR against an MLA from his own party, the Janata Dal United.

Anant Singh, MLA from Mokama, along with a band of men all bearing guns, had been trying to get owners of shops on Patna’s posh Fraser Road to vacate their premises: the original owner of the plot and his wife had both died without heirs and Singh thought this was a good time to write the land down as his. He let owners of shops on the plot know that he had already bought small lots and advised them in their own interest to sell to him. The gunmen just stood by while he spoke, guns hanging loosely from their arms.

Nitish Kumar had pledged to bring down exactly these kind of men. It fell to Sinha to motivate, threaten and persuade policemen in the Kotwali police station to file a complaint against Singh.

 

 

Those who know Bihar politics and society alone can appreciate that this is easier said than done. Sinha got an FIR registered but policemen would go to Anant Singh’s house in Patna, not find him, paste a notice and return. He couldn’t be found anywhere, although reporters could find him without any difficulty and he addressed press conferences freely! Speaking to Business Standard in 2007, Sinha pledged he would get the job done.

ALSO READ: Anil Kumar Sinha takes over as new CBI Chief

A lot has happened since then. Anant Singh was found and last heard, another couple of charges of extortion had been registered against him. Sinha meanwhile moved to Delhi in the Central Bureau of Investigation (CBI). He has now been appointed Director of an organization that is currently everybody’s favourite whipping boy.

In 2006, he, along with then Advocate General of Bihar PK Shahi, hit upon the simple stratagem of ridding Bihar of gun-raaj by invoking the Arms Act. All that is needed to put a gunslinger behind bars under the provisions of this act is the testimony of a sub-inspector. Sinha would get the local police to give testimony and Shahi would prosecute in fast track courts. Between them they put thousands of men with illegal arms in jail.

Later, Sinha got investigations into the 1989 Bhagalpur riots in which more than 2000 people died, reopened. 27 cases were reopened after it found that despite solid evidence against the accused in the police complaints, they were let off. It was a shocking travesty of justice. Sinha built up the case.

He was moved to Bihar’s vigilance department. Around this time, Nitish Kumar was anxious to put an end to rent seeking in contracts and jobs. He found that every time the government moved against officers whose assets were disproportionate to their income, they would move court and the case would drag on and on.

It was Anil Sinha’s idea to set up special courts for corrupt officials. The most significant aspect of the special courts was that the immovable assets of persons being tried in these courts could be seized during the pendency of the trial.

The Special Court Bill was passed by the state Assembly in March 2009. The President gave her assent to the bill in January 2010. In 2010, the home of one of the officials found to have assets disproportionate to his income was seized by the state government and turned into a school. Nitish Kumar won the 2010 election on the back of this legislation.

“We badly needed this legislation to weed out corruption from government offices. Over the years, the vigilance bureau had laid nearly 300 traps, which led to unearthing of investments and property worth hundreds of crores. But we could not confiscate this. The new law will help set up designated courts for speedy and effective trail of corrupt babus. We can pray to the court for confiscation of property, which was not the case earlier. Of course, if the judgment goes in favour of the accused, the government will have to return the property and money with interest,” Sinha had told Business Standard in 2010.

But as is inevitable in Bihar, caste politics intervened. Sinha moved out of Patna to join the Central Vigilance Commission and Abhayanand became Bihar’s top cop. He later moved to the CBI as Ranjit Sinha’s second in command.

Sinha’s greatest quality is that he is afraid of no one but the Constitution of India and the law.

There may be officers more brilliant than him and probably many who are more dashing. But Sinha brings with him a solid earthy dedication to the job - which hopefully, will let the sunlight pour in to India’s premier investigation organization.

Why SEZs in India have failed Of the 564 SEZs formally approved, only 192 were operational as of June this year

Special Economic Zones (SEZs) are likely to be central to realising Prime Minister Narendra Modi’s ambitious ‘Make in India’ agenda. But the withdrawal of tax incentives has made SEZs an unattractive proposition, say industry experts.

Under the original scheme, businesses in SEZs were exempted from the minimum alternate tax (MAT) on book profits and developers were exempted from payment of the dividend distribution tax (DDT). But with indications that companies were misusing the policy for real estate arbitrage and that information technology companies were using the policy to recoup tax benefits that they lost when the Software Technology Parks of India (STPI) scheme ended, these exemptions were withdrawn.

From 2011-12 onwards, MAT exemptions for SEZ units and developers were withdrawn and DDT exemptions for developers were terminated. MAT was levied on book profits at the rate of 20 per cent, while DDT was levied at 20 per cent on dividends distributed to shareholders.

ALSO READ: Fin Min rejects tax breaks for SEZs

According to Neeru Ahuja, partner at Deloitte Haskins & Sells, a key attraction for corporate houses was the income tax holiday. “With taxes being levied, the savings for companies on account of tax concessions was reduced, impacting interest in SEZs,” Ahuja said.

 

 

 

Vivek Mehra, partner at PricewaterhouseCoopers, argues DDT and MAT should be scrapped, while Kavita Rao, professor at the National Institute of Public Finance and Policy (NIPFP), a Delhi-based think tank, disagrees. She argues “as companies have been given incentives, toning those down through MAT is not a bad idea, per say. What can be debated is the level at which the tax is levied”.

Arpita Mukherjee, a professor at the Indian Council for Research on International Economic Relations (Icrier), another Delhi-based think tank heading a study on analysing the cost benefit analysis of the SEZ policy, says the imposition of MAT has made SEZs unattractive and adversely impacted investor sentiment. This is because MAT exemptions are punishable under WTO (World Trade Organization) rules; there is need to provide better business facilitation packages and incentives that comply with WTO rules.

Though the issue of taxation is contentious, it is the unpredictability of the tax regime that has had an impact on investments. In their study on trade and investment barriers, Anwarul Hooda and Durgesh Rai, economists at Icrier, argue “predictability in taxation policies is a sine qua non for making the environment conducive for investment, whether foreign or domestic, so the withdrawal of direct tax benefits has been a setback for the SEZ programme and has affected its future prospects”.

Of the 564 SEZs that have been formally approved so far, only 192 were operational in June this year. Total employment in these enclaves was 1,277,645 in 2014, as against an expectation of 1,743,530 by 2009. While the share of SEZs in total exports rose from six per cent in 2006-07 to 28 per cent in 2010-11, it is believed to have declined in subsequent years. The total area under SEZs currently stands at 61,624 hectares, while Shenzhen in China alone covers 49,300 hectares.

However, Mehra saus “the SEZ policy continues to be relevant from a ‘Make in India’ perspective, but several policy initiatives are necessary to get those going”. Mehra argues that for improving their viability “manufacturers should be allowed to sell goods in the domestic market but duty should be imposed on individual parts imported and not on the entire product, which would make it unviable. No Customs duty should be imposed on domestic value added”, he said.

\India has signed a number of free trade agreements (FTAs), with countries like Sri lanka, Japan and the Association of Southeast Asian Nations (Asean), under which import duties have been slashed to zero for several product lines. This impacts local sales of SEZ units, which are taxed at higher rates. Mehra proposes that “manufacturers in India should have the ‘most favoured nation’ status that implies lowest tariff under the FTAs”. Rao concurs, saying “such reductions should be extended to all manufacturers, not simply the ones in SEZs”.

But experts contend that taxation issues are not the only ones impeding SEZs. According to Mukherjee, “despite offering over 300 incentives and schemes for promotion of manufacturing at the Centre and state levels, manufacturing growth has not risen substantially. Therefore, incentives need to be carefully evaluated and studied. Incentives should not be the only reason for units to be located in SEZs. Success depends on the business facilitation measures adopted. Location, infrastructure, logistics and professional zone management are four key factors determining success of SEZs”.

A major reason for the success of SEZs in China was the creation of complementary infrastructure, power, roads and ports; these are lacking in India. According to Rao, “to get SEZs and manufacturing going in India, the focus should be on creating the necessary infrastructure which will require a more holistic approach”. Anwarul Hooda and Durgesh Rai, in their study, also point out: “Another major reason for the SEZs languishing is the absence of external infrastructure support. The SEZs have to be connected with ports and airports with world-class roads and rail; ports and airports, too, have to be world-class, with Customs authorities adopting international best practices in trade facilitation. This is not the case at present. Deficiencies in the availability and quality of power are an equally important constraint.

India votes against UNGA resolution on nuclear weapons

India, along with the US and Pakistan, has voted against a provision in a UN resolution calling on to "promptly" accede to the NPT as non-nuclear- weapon nation "without conditions" and to place all its nuclear facilities under IAEA safeguards.

A draft resolution on achieving a nuclear weapon-free world and accelerating the implementation of nuclear disarmament commitments was adopted in the UN General Assembly session on Tuesday by a recorded vote of 169 in favour to 7 against with 5 abstentions including by Bhutan and China.

Prior to the passage of the draft as a whole, a separate vote was also taken on operative paragraph 9, which stressed the fundamental role of the NPT (non-proliferation treaty) in achieving nuclear disarmament and non-proliferation and urged India, Israel and Pakistan to accede to it as non-nuclear-weapon States promptly and without conditions and to place all their nuclear facilities under International Atomic Energy Agency (IAEA) safeguards.

The provision was retained by a recorded vote of 165 in favour with India, Israel, Pakistan, the US voting against and Bhutan, France, the UK abstaining.

India, Isreal and the US also voted against the preambular paragraph 24, which emphasised the importance of a successful 2015 NPT Review Conference.

The provision was retained by a vote of 166 in favour and three abstentions from France, Pakistan and the UK.

The Assembly also retained operative paragraph 11, which urged all States to work together to overcome obstacles within the international disarmament machinery and immediately implement the three specific recommendations from the 2010 Review Conference Action Plan, by a recorded vote of 167 in favour to 3 against and 4 abstentions including India.

India, Isreal and the US also voted against a provision which would emphasise the importance of a successful 2015 Review Conference.

The provision was retained by a recorded vote of 166 in favour with 3 abstentions (France, Pakistan and UK).

The general Assembly also took up the draft resolution, 'Towards a nuclear weapon-free world: accelerating the implementation of nuclear disarmament commitments' and adopted by a recorded vote of 169 in favour with India along with Israel, the UK, the US voting against the resolution.

India improves rating on global corruption index, ranks 85th Denmark retained its position as the least corrupt country in 2014

India has showed some improvement in addressing corruption this year, ranking 85th among 175 countries as against 94th last year, graft watchdog Transparency International India (TII) said today.

Denmark retained its position as the least corrupt country in 2014 with a score of 92 while North Korea and Somalia shared the last place, scoring just 8, it said.

In India's neighbourhood, China moved to 100th place, down from 80th last year, while Pakistan and Nepal were at 126th position. Bangladesh was 145th and Bhutan 30th in the ranking. Sri Lanka was ranked 85th with India.Afghanistan was at a bleak 172.

According to the Corruption Perception Index (CPI) report by TII, "the CPI score for India increased by 2 points in 2014 from its 2013 score, helping India's rank move up to 85 in 2014 from 94 in 2013". India's score stood at 38 as compared to 36 last year.

The improvement in CPI for India was driven primarily by two data sources -- from the World Economic Forum and World Justice Project's (WJP) index.

"A score increase on WEF suggested businesses in India were viewing the environment favourably with regards to their perception of corruption and bribery in the country".

The WJP score also went up reflecting the perceptions of public sector corruption coming down slightly in India, the report said.

The report noted that in terms of the new government, the CPI possibly captured the anti-corruption mandate on which the new government was elected and the possibility of some new reforms in this area.

"However, the data used for CPI mostly was collected prior to the change of government and therefore this will not reflect directly into any of the CPI sources," it said.

To calculate India's position this year, 9 out of 12 independent data sources specialising in governance and business climate analysis were also used.

These included Bertelsmann Foundation, World Bank and World Economic Forum. They helped in measuring perceptions of corruption in public sector and cross country comparability.

In his reaction, Chairman of TII S K Agarwal, said the "new Government has got fully majority on agenda of good governance and now it's high time to act and pass all pending anti corruption bills including the right of citizens for time bound delivery of goods and services and Redressal of their Grievances Bill".

Welfare Schemes for Unorganised Workers

The Minister Of State (IC) for Labour and Employment, Shri Bandaru Dattatreya has said that according to the survey conducted by the National Sample Survey Organization (NSSO) in 2009-10, the total employment in both the organized and the unorganized sectors in the country was 46.5 crore, of which 43.7 crore were in the unorganized sector. In a written reply in the Rajya Sabha today, Shri Bandaru Dattatreya said that with a view to providing social security to unorganized workers, the Government had enacted the “Unorganised Workers’ Social Security Act, 2008”. The Act provides for the constitution of National Social Security Board at the central level to recommend social security schemes viz. life and disability cover, health and maternity benefits, old age protection and any other benefit as may be determined by the Government for unorganized workers. The Minister said that Government has already taken various steps to provide social security for the unorganized workers. Some of these schemes are listed as under: 1. Indira Gandhi National Old Age Pension Scheme, (Ministry of Rural Development). 2. National Family Benefit Scheme, (Ministry of Rural Development). 3. Janani Suraksha Yojana, (Ministry of Health and Family Welfare). 4. Handloom Weavers’ Comprehensive Welfare Scheme, (Ministry of Textiles). 5. Handicraft Artisans’ Comprehensive Welfare Scheme, (Ministry of Textiles). 6. Pension to Master Craft Persons, (Ministry of Textiles). 7. National Scheme for Welfare of Fishermen and Training and Extension, (Department of Animal Husbandry, Dairying & Fisheries). 8. Janshree Bima Yojana and Aam Admi Bima Yojana, (Department of Financial Services). 9. Rashtriya Swasthya Bima Yojana, (Ministry of Labour and Employment).

news related to ISRO

Cooperation with China

India has not signed any agreement with China to develop remote sensing satellites for disaster management and preparedness.               However, a Memorandum of Understanding (MoU) between Indian Space Research Organisation (ISRO) and China NationalSpace Agency (CNSA) on cooperation in the peaceful use of outer space was signed on September 18, 2014 at New Delhi. As per this MoU, the Cooperative activities may include the following areas: (i)             Research and development of scientific experiment satellites, remote sensing satellites and communications satellites. (ii)           Launch, tracking and control services for satellites including in-orbit operation and management. (iii)          Research, development, utilization and applications of satellite ground systems.                                  (iv)   Material processing in space, atmospheric sciences, radio astronomy,                                  astrophysics and microgravity testing; and other mutually agreed areas.                         ISRO is pursuing cooperation with other countries on peaceful uses of outer space. Cooperative agreements are signed with 35 countries. The areas of cooperation include (i) Remote Sensing of Earth, (ii) Satellite Communication, (iii) Launch Services, (iv) Telemetry & Tracking Support, (v) Space Exploration, (vi) Space Law and (vii) Capacity Building. ISRO is currently working with space agencies of: (i) USA, to realize Dual frequency (L& S band) Synthetic Aperture Radar mission for Earth observation and (ii) Canada,to realize Ultra Violet Imaging Telescope (UVIT) to be accommodated in India’s ASTROSAT satellite. Achievements of ISRO The Government has taken a number of steps to popularise ISRO`s prowess in the field of space launches. Antrix Corporation Limited (Antrix), the commercial arm of Indian Space Research Organisation (ISRO), from 1999 onwards - till date, has successfully launched 40 satellites of foreign customers from 19 countries, using ISRO’s Polar Satellite Launch Vehicle (PSLV). Further, contracts have been finalized to launch 16 satellites from 6 countries in the coming years. The ISRO has undertaken space launch services of developing countries in Asia and Africa. The ISRO, through its commercial arm Antrix, has already launched one satellite for developing countries in Asia namely, Indonesia and contract has been finalized for launching two more satellites of Indonesia. One satellite has also been launched for developing countries in Africa namely, Algeria. The space projects undertaken by Antrix Corporation Limited, the commercial arm of ISRO, till date, include: (i) establishment of ground stations for reception of data from Indian Remote Sensing (IRS) satellites along with processing facilities at 20 locations outside India; (ii) building two contemporary communication satellites for European customers, and one communication satellite for Indian strategic user; (iii) providing tracking support for over 70 spacecraft missions of foreign customers; (iv) provisioning of satellite transponder capacity from Indian communication satellites for telecommunication, TV broadcasting, Direct-To-Home (DTH) services and VSAT applications; (v) launching of 40 foreign satellites on-board ISRO’s PSLV; (vi) establishment of ground terminals for tele-education, tele-medicine, disaster mitigation and Village Resource Centres; and (vii) consultancy services to domestic and foreign clients. Indian Space Telescope At present, Indian Space Research Organisation (ISRO) does not have any plan for developing an Indian Space Telescope similar to Hubble Space Telescope. ISRO intends to launch following projects for space exploration in the next three years.             1. A multi-wavelength astronomy satellite ‘ASTROSAT’ aimed at studying the celestial sources over a wide spectral region covering Visible, Ultraviolet, Soft X-rays and Hard X-ray bands.              2.  Chandrayaan-2 mission comprising of an Indian Orbiter, Lander and Rover. The Orbiter with scientific payloads will orbit around the moon.  The scientific payloads onboard the Orbiter, Lander and Rover are expected to perform mineralogical and elemental studies of the lunar surface.              3. A scientific mission ‘Aditya’ for solar studies to understand the physical processes that heat the solar corona.

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