First money laundering conviction: Ex-Min jailed for 7 yrs

Ranchi, Jan 31, 2017, (PTI)

In the first money laundering conviction in the country, former Jharkhand Minister Hari Narayan Rai has been sentenced to seven years rigorous imprisonment and fined Rs 5 lakh by a special court here.
The maiden conviction, ordered yesterday by the court of Special Judge B K Tiwari, has come after the Prevention of Money Laundering Act (PMLA) was enforced 12 years ago and it saw Rai, former state Chief Minister Madhu Koda's cabinet colleague, being convicted for laundering funds to the tune of over Rs 3.72 crore.

The case pertains to the money laundering probe involving Koda and others and was unearthed by the agency in September 2009 in which a number of arrests were made and assets worth hundreds of crores were attached.

"Rai, as Minister in the Jharkhand government, during the period 2005-08 laundered his illegal income through purchase and acquisition of various assets by misappropriation of public money and using the same for his personal benefits," the Enforcement Directorate said in a statement issued after the order of conviction.

Rai, elected as an MLA from the Jarmundi Assembly seat in Dumka district, held Cabinet portfolios like that of Tourism Development, Urban Development, Rural Works and Forests not only in the Koda cabinet but also in the government of former CM's like Arjun Munda and Shibu Soren.

"Rai has been pronounced guilty under section 3 (offence of money laundering) read with section 4 (punishment for money laundering) of the PMLA and has been sentenced to 7 years Rigorous Imprisonment, the maximum under the said Act, and has been additionally fined Rs 5 lakh. If the fine is not deposited, the order directed Rai to undergo another RI of 18 months. The court found him guilty for laundering proceeds of crime to the tune of Rs 3,72,54,016," the agency said.

Calling it a "historic judgement", ED Director Karnal Singh told PTI that the agency will "continue its sustained action against money launderers as such entities work against the nation and the society."

"ED is committed to take action against the persons involved in money laundering," the ED chief added.

A senior official said: "This is the first conviction under the PMLA in the country which was enacted in 2002 and implemented from 2005 in order to check and curb black money and grave financial crimes."

The ED had taken over this case in September, 2009 after taking cognisance of Jharkhand Vigilance Bureau's FIRs in the case and had filed three charge sheets in the case since then.

The CBI too probed the case under various sections of IPC and Prevention of Corruption Act.

ED said its probe found that Rai "established a construction company under the name Ms Mahamaya Construction Private Limited in the name of his wife Sushila Devi and others, Ms Maa Gauri Construction in the name of his brother Sanjay K Rai and others and also established Ms Baba Basuki Dairy Firm in the name of his wife and brother and laundered huge money in the name of the said companies/firms and projected them as untainted money.

"Rai had also transacted huge amount of money with his wife and his brothers Sanjay K Rai, Dev Narayan Rai and projected them as untainted money," it said.

Apart from filing three charge sheets in this case, the trial was completed in September last year and the arguments ended on January 16 earlier this month after which the conviction order against Rai was made by the local court here.

ED is the central agency to enforce the PMLA in the country.

Note ban to shave off GDP growth by up to 0.5 pc

New Delhi, Jan 31, 2017 (PTI)

Demonetisation will shave off the economic growth for the current fiscal by 0.25 per cent to 0.50 per cent though it will have long-term benefits for the economy by reducing interest rates and eliminating corruption, besides bringing in more activities in the formal sector.
The cash squeeze, following junking of high value notes of Rs 500/1000 on November 8, 2016, the Economic Survey for 2016-17 said, "will have significant implications for GDP, reducing 2016-17 growth by 0.25 to 0.50 percentage points compared to the baseline of 7 per cent."

The Survey has, however, projected the growth rate for 2017-18 at 6.75-7.5 per cent. For the current fiscal, the GDP growth has been estimated at 6.5 per cent, lower than 7.1 projected by Central Statistics Office earlier this month.

It expressed hope that the remonetisation exercise will eliminate cash squeeze by April 2017, while asserting that the adverse impact of demonetisation on GDP growth will be transitional.

"Once the cash supply is replenished, which is likely to be achieved by end-March 2017, the economy would revert to the normal," the document said.

The costs of demonetisation include contraction in cash money supply and subsequent, albeit temporary, slowdown in GDP growth, while the benefits to the economy will be in the form of increased digitalization, greater tax compliance, reduction in real estate prices, increase long-run tax revenue collections and GDP growth.

It further said that effective cash in circulation fell sharply although by much less than commonly believed – a peak of 35 per cent in December, rather than 62 per cent in November since many of the old high denomination notes continued to be used for transactions in the weeks after November 8.

IUML MP Ahamad critical after heart attack during Prez speech

New Delhi, Jan 31, 2017, PTI

Former Union minister and Indian Union Muslim League leader E Ahamed today suffered a cardiac arrest during the President's address to the joint sitting of Parliament and is in a critical condition.

According to sources at RML hospital, the MP from Kerala's Mallapuram, is on artificial life support and a team of doctors is closely monitoring his condition.

"The MP had no pulse or heartbeat when he arrived at the hospital. A team of doctors carried out a resuscitation procedure following which his heartbeat returned but his condition is critical and he is currently under close observation of doctors," a senior doctor said.

Earlier, 78-year-old Ahamed, fell unconscious soon after he took a seat in the rear rows of the Central Hall.

"He arrived a little late. As soon as he sat down, he fell unconscious. Doctors attached with the President who were present there extended emergency help and he was rushed to the hospital," a senior official of the Lok Sabha Secretariat said.

At around 2.15 PM, he was shifted to the RML trauma centre's ICU where he was put on ventilator.

Prime Minister Narendra Modi inquired about his health.

According to hospital sources, Congress vice president Rahul Gandhi and Union minister Jitendra Singh visited RML hospital to inquire about Ahamed's condition.

Ahamed had served as Minister of State for External Affairs in the previous UPA government.

PM hopes for comprehensive discussions during Budget session

New Delhi, Jan 31, 2017, (PTI)

Ahead of the start of the Budget session, Prime Minister Narendra Modi today hoped for a comprehensive discussion in Parliament.
He noted that in the last few days, the government has held discussions with all political parties to ensure that House proceedings are not disrupted.

There should be comprehensive discussion for welfare of society, Modi told reporters outside Parliament.

The Prime Minister said he has faith that all factions will come together in Parliament for welfare of society.

He said it is the first time that the Union Budget is being presented on February 1. Modi recalled that while budgets were earlier presented at 5 in the evening, it was former Prime Minister Atal Bihari Vajpayee who advanced it to morning.

"Today, a new tradition will begin. First, the budget is being advanced by nearly a month. And second, Rail Budget in being incorporated into this. There will be discussion on this also and the benefits that it will have in the coming times," he said.

After the Winter Session was washed out due to protests over demonetisation, Modi had yesterday reached out to the opposition at an all-party meeting called here yesterday.

The meeting was attended by all major parties except Trinamool Congress, which has been unhappy over the note ban and arrest of its MPs in chit fund cases.

Speaking to reporters on the sidelines of an event, Information and Broadcasting Minister M Venkaiah Naidu hoped that all parties understand the importance of the Budget session and prepare themselves to participate in a more meaningful and constructive manner.

He said government is ready to discuss each and every issue including demonetisation.

"This budget is a new budget because general budget and railway budget have been combined together. The members will have an opportunity to discuss policies of the government.

"Secondly, we will have ample opportunity to scrutinise the budget proposals in depth because we have a committee system and thirdly, we can have a general discussion on various issues in the session," Naidu said.

The minister said government has nothing to hide or worry, adding that, "we have taken many far-reaching reforms in various walks of life and governance and we are happy of discuss about the same including the recent demonetisation.

"We can also discuss other related issues that are currently before the country. I hope we will have a meaningful session and members of all parties will use this occasion to have a more constructive debate," the minister added. 

Surgical strikes a fitting reply to repeated incursions: President

New Delhi, Jan 31, 2017, (PTI)

The surgical strikes by India at several terrorist launch pads along the Line of Control to prevent infiltration from Pakistan was a "fitting reply" to the repeated incursions on its territorial sovereignty, President Pranab Mukherjee said today.

Noting that the country is facing the grave challenge of terrorism for the last four decades including cross-border attacks in Jammu and Kashmir, Mukherjee, in his address to the joint sitting of both the Houses of Parliament on the opening day of the Budget Session, said India will actively cooperate with other nations to decisively defeat terrorist forces.

Asserting that the government is committed to combating terrorism and ensure that the perpetrators of such acts are brought to justice, he said, "My government has taken decisive steps to give a fitting reply to the repeated incursions on its territorial sovereignty.

"On 29th September 2016 our defence forces successfully conducted surgical strikes at several launch pads along the Line of Control to prevent infiltration by terrorists. We are proud of the exemplary courage and valour displayed by our defence personnel and owe a debt of the gratitude to them."

J&K has been affected by terrorism sponsored and supported from across the border, Mukherjee said, adding the attempts of infiltration, incidents of terrorist violence and loss of precious lives of civilians and security personnel remain a cause of "grave concern".

"India has been facing the grave challenge of terrorism for the last four decades. Terrorism poses a serious danger to the global community. India will actively collaborate with other nations in decisively defeating these forces.

"My government is committed to combating terrorism, and to ensure that the perpetrators of such acts are brought to justice," the President said in his nearly hour-long address.

He also talked about Left Wing Extremism and said there has been considerable success in containing the menace over the last three years, with the surrender of over 2,600 extremists. The security situation in the north eastern states has also shown significant improvement, he added.

During his address, the President also noted that the government continues its active diplomacy aimed at facilitating national development, enhancing the country's security and ensuring greater Indian influence in global fora.

There has been a consolidation of relations with friendly countries and major powers, the President said.

"The common desire of the South Asian region for greater prosperity and development led most of its nations to make common cause in their opposition to terrorism," he said.

He also referred to India's Membership of the Missile Technology Control Regime (MTCR) and signing of the Memorandum of Obligations of the Shanghai Cooperation Organisation (SCO), saying they were further reflections of the country's growing and multi-dimensional role in global affairs.

He said India sent a strong message of its commitment to combat climate change with focus on climate justice and sustainable lifestyle when it ratified the Paris agreement on October 2, 2016.

Latur factory mishap: Toll rises to 9

Mumbai, Jan 31, 2017, (PTI)

The death toll in the mishap at an oil mill in Maharashtra's Latur district has climbed to nine with two more bodies being recovered from a tank in the factory, a fire brigade official said today.
Earlier, seven workers had died yesterday after inhaling poisonous gas while cleaning a tank at the Kirti Oil Mills in Latur.

Two more bodies were recovered from the tank late last night, a fire brigade official told PTI over phone.

The fire brigade operation was called off at 3 AM today after recovery of the last body, he said.

Yesterday, some workers had fallen unconscious while cleaning the tank at the factory in Latur MIDC (Maharashtra Industrial Development Corporation).

A few others climbed down into the tank to check on them but did not come out.

They died after inhaling poisonous gas, the official said.

One worker, who was rescued in an unconscious state, is undergoing treatment at Vivekanand Hospital in Latur, fire brigade official said.

A probe has been started into the incident.

The deceased have been identified as Dagdu Pawar, Baliram Pawar, Narendra Tekale, R D Shinde, Maroti Gaikwad, Rambhau Yerme, Akash Bhute, Parmeshwar Birajdar and Atkare Shivaji.

State Minister for Labour Sambhaji Patil Nilangekar and Assistant Labour Commissioner D P Patil visited the mishap site where they were gheraoed by relatives of the deceased late last night.

Nilangekar, who is also the Guardian Minister of Latur, later told reporters that they were trying to find out if a case under IPC section 302 (murder) could be filed in connection with the incident.

He also said that the mill would be sealed.

The mill's director, Ashok Bhutda, said information about cause of the mishap could only be provided after the probe.

SC names former CAG Vinod Rai to run BCCI

NEW DELHI, Jan 31, 2017, DHNS

4 SC-nominated administrators will oversee work

The Supreme Court on Monday appointed a panel of cricket administrators to implement the recommendations of the Lodha committee. Headed by Vinod Rai, former comptroller and auditor-general of India, the panel will oversee the operations of the Board of Control for Cricket in India. The panel also comprises Bengaluru-based historian Ramachandra Guha, Infrastructure Development Finance Company managing director Vikram Limaye, and former women’s Test cricketer Diana Edulji.

Taking the next step after removing BCCI president Anurag Thakur and secretary Ajay Shirke, a three-member bench, headed by Justice Dipak Misra, nominated the administrators as an interim measure, in accordance with its own January 2 indications. “The BCCI CEO will report to the committee which shall take care of the affairs of the BCCI. The BCCI shall report to the committee of administrators, who shall supervise the management of the board,” the bench said.

The order came after the court considered names suggested by amicus curiae Gopal Subramanium and Anil Divan. Kapil Sibal, who represented some state cricket associations, and Arvind Datar, who represented the BCCI, had also submitted some names. The bench, with Justice A M Khanwilkar and Justice D Y Chandrachud, refused to accept attorney-general Mukul Rohatgi’s plea to include the secretary of the sports ministry as one of the administrators.

The court cited its earlier direction that no government servant should be a member of the BCCI. The bench also turned down the argument, put forth by the BCCI and state associations, that it would disturb the cricket body’s electoral college by appointing outside administrators.

In order to ensure “objectivity and transparency”, the court allowed BCCI officials Amitabh Choudhary and Anirudh Chaudhry, along with Limaye, to represent the top cricket body at a meeting of the International Cricket Council in the first week of February.

During the hearing, Sibal objected to the name of Rai, contending that he stands disqualified as he holds the government post of Banks Board Bureau chief. The bench, however, rejected the contention, saying a former CAG could not be appointed to a government post. The court also directed advocate Gopal Sankaranarayanan, representing the Lodha committee, to alert the administrators to deficiencies in implementing the reforms suggested by the court-appointed committee.