FOCUS ON CURRENCY CHESTS - Finmin Sends Joint Secy to Coordinate RBI Cash Ops

ET-05 JANUARY 2017-pG. 03.

FOCUS ON CURRENCY CHESTS - Finmin Sends Joint Secy to Coordinate RBI Cash Ops

Jan 05 2017 : The Economic Times (Mumbai)

FOCUS ON CURRENCY CHESTS - Finmin Sends Joint Secy to Coordinate RBI Cash Ops

Dheeraj Tiwari

New Delhi

In an unusual move, and in another sign of the government's effort to be on top of demonetisation management, the finance ministry has sent a joint secretary to Reserve Bank of India to coordinate the central bank's currency chest operations.

Currency chests are branches of select banks authorised by Reserve Bank to hold notes and coins. The central bank manages currency chests.

RBI's circular to banks on Tuesday directing them to ensure that at least 40% bank notes are supplied to rural areas is also said to have come after suggestions from the finance ministry.

ET spoke to senior finance ministry officials for this report. They spoke off record. Questions sent to RBI didn't receive any response.

A senior finance ministry official said both the central bank and the government are jointly working on issues related to demonetisation. And that deputing the joint secretary was part of that broader effort. “RBI and the finance ministry are working together on a number of issues as they always do. Our official is there to discuss a host of issues, including credit to micro, small and medium enterprises (MSMEs),“ the finance ministry official said.

Another official said sending a finance ministry bureaucrat to RBI was aimed at maximising the effort to distribute currencies to all groups and areas in an efficient manner. RBI's circular on Tuesday said: “Chests should issue bank notes in denominations of `500 and below. In particular, ATMs may be issued `500s and `100s...Off-site ATMs should be allocated higher proportion of cash as against onsite ATMs as they are more important in last mile currency connectivity.“

Currency supply situation has steadily improved from end-December -over a month after demonetisation of `500 and `1,000 notes was announced on November 8 -and as ET had reported earlier, bankers, finance ministry and central bank officials expect 80% of the value of the currency extinguished to come back into the system by February end.

The government's and RBI's focus on rural areas is to ensure that the weeks till end-February see as little disruption as possible in heavily cash-dependent rural economies.

ET VIEW

Remonetisation Must Be a Joint Effort

Swift remonetisation to get the wheels of the economy moving should be a joint effort of the government and the Reserve Bank of India.Together the two run four presses that print all the legal tender. The appointment of a central government official to coordinate currency chest operations is more about overseeing the logistics to hasten the pace of introducing new notes. So, the perception that this infringes on the regulator's autonomy is entirely misplaced.

Jan 05 2017 : The Economic Times (Mumbai)

Nothing in Black & White to Hold `Men in Black'

Krishna Kumar

Mumbai:

Police can't arrest cash hoarders as there is no legal provision to book people for mere possession of money, say lawyers

Images of police swooping on people with stashes of new currency notes have been a recurrent theme in the wake of demonetisation, conjuring up among many a vision of a succeeding scene filmed behind bars.

But what really happens after the police apprehends somebody with a large amount of new currency notes?

The short answer is that in most cases police lets such people go within hours.

For an illustration, consider the case of the three businessmen apprehended by the Thane police last month for possessing lakhs of new currency notes and trying to exchange these notes for a commission. The police called up the Income Tax Department, “interrogated“ the three men and let them go, with the IT department seizing the money.

No, the three men involved did not pull any strings.

There is simply no legal provision under which the police can book such individuals.

“We just intimated the IT department and handed over the men to their custody. The IT department has to take a call on how to proceed,“ said a senior Thane police officer, who did not wish to be identified.

Mere possession of currency is not an offence, said lawyer Zulfiquar Memon of MZM Legal. “Those detained have been let off by police because there is no clarity under which section (of Indian Penal Code) you can detain them. There are a few police stations which wrongly book people under hoarding or cheating.“

Former IPS officer turned lawyer YP Singh said he was surprised as to how such detentions even take place since not paying income tax is a civil matter and police has no role to play in this matter.

“Under which law did the police detain the people involved? The policemen who were involved in these illegal detentions can actually be booked under IPC 341 and 342 ­ wrongful restraint and wrongful confinement,“ said Singh. Memon said last week he managed to get a UK-based client released from custody after he was arrested for “cheating“ while trying to exchange new notes worth 50 lakh. “My client had a fight with the person with whom the notes were to be exchanged. Based on this person's complaint my client was arrested. I argued his case; not only was he freed, even his money was handed back to him,“ he said.

Singh said that in order to detain or arrest those caught with cash the police needs to show that the money is the proceeds from a criminal case already registered by the police or from a stolen property. “Even the IT department cannot arrest a person; all it can do is seize the money and levy a penalty,“ he said.

Pg. 6.

Jan 05 2017 : The Economic Times (Mumbai)

Unrelenting CBI Chief Asthana Has More Netas in Crosshairs

Aman Sharma

New Delhi

AGUSTA PROBE CBI interim chief has given green signal to probe politicians too, in what could rile Congress as initials of some of its leaders feature in a diary with CBI

The Central Bureau of Investigation (CBI) is on an overdrive under its acting director Rakesh Asthana with big arrests effected under his watch in the last 25 days in long-pending cases, bringing the heat upon the political rivals of the ruling establishment.

Former Air Force Chief SP Tyagi and two other accused have got bail after being arrested by CBI in the AgustaWestland case within a week of Asthana becoming the acting chief. Questions are being raised why such high-profile arrests, including those of Trinamool Congress MPs, are being effected by the agency which usually desists from arrests.“Non-cooperation with probe is not the only ground to arrest someone. An accused is arrested to confront him with the evidence collected ­ when the material turns substantial. This is done under custodial interrogation. That is why Tyagi was arrested at the stage he was. There is strong evidence that he was paid a big bribe,“ a senior CBI official told ET. It has also been questioned why CBI did not act for three years when Tyagi was appearing before them after the FIR was lodged in 2013. “You cannot accuse us of inaction as well as now for action,“ the CBI official said.

Asthana is said to have given the green-signal to expand the probe to the politicians too, in what could rile the Congress party as initials of some of its leaders are said to feature in a diary forwarded to CBI by Italian courts. “We will corroborate the same before summoning politicians for questioning,“ a CBI official said. In an unprecedented step, CBI has also challenged the bail given to Tyagi before the High Court ­ pleading him to be kept in jail and away from other suspects till the CBI files a chargesheet. “The first charge-sheet in Agusta case will be filed next month.The amount of bribe established by us is euros 52 m ­ 30 m through Christian Michel and euros 22 million through Guido Haschke ­ to ben efiaries,“ the CBI official said.

The same grounds are being cited for arrest of Trinamool Congress MPs Sudip Bandopadhyaya and Tapal Pal in the last one week in a chit fund case of `17,000 cr. “The case is pending since 2014. A first chargesheet has been filed and we are investigating the larger conspiracy and the money trail. Hence, the arrests of MPs now after we got evidence against them. More arrests are on cards,“ a CBI official said.

CBI has also received the reference from Haryana government regarding the National Herald case against former Haryana CM Bhupinder Singh Hooda. Seven cases against AAP government in Delhi are under CBI probe too. On December 9, a week after Asthana took over, CBI also filed a chargesheet against former Union ministers from DMK, Dayanidhi Maran and Kalanithi Maran, in the illegal phone exchange case which had been pending since 2013.

Asthana, a Gujarat-cadre IPS officer perceived to be close to the ruling establishment, “has been sandwiched in a political fight“, an official close to him reasoned. “He is not even eligible to become the CBI Director as he is from the 1984 batch of IPS which is not yet empaneled. Ordinarily , CBI director is picked from the four senior-most batches ­ in this case from 1979 to 1983 batches.

Prashant Bhushan has filed a plea before SC challenging Asthana's appointment. The Centre is still to call a meeting of the selection committee to select the next director. The joke in CBI is Asthana may have already set the work agenda for the next director with the probes fast-tracked by him.

TOI-Pg. 05-97% of scrapped notes deposited with banks-Report

Jan 05 2017 : The Times of India (Mumbai)

97% of scrapped notes deposited with banks: Report





Banks received Rs 14.97 lakh crore in deposits of the demonetised Rs 500 and Rs 1,000 notes between November 9 and December 30, reports Bloomberg, adding that the figure was provisional and could be revised. The figure amounts to nearly 97% of the Rs 15.44 lakh crore that was declared void on November 8.The junked notes comprised 86% of all currency.

Pg. 21.

Jan 05 2017 : The Times of India (Mumbai)

97% of scrapped notes deposited with banks as on Dec 30: Report

New Delhi:

TIMES NEWS NETWORK

Nearly 97% of the outlawed Rs 500 and Rs 1,000 notes has been deposited with banks as on December 30, according to Bloomberg news service.

Quoting two people with knowledge of the matter, Bloomberg said banks had received Rs 14.97 lakh crore by the last date for depositing old cash, adding that the figures were provisional and could be revised. Rs 15.44 lakh crore, representing about 86% of all currency , was declared void on November 8.

TOI had reported on December 28 that about Rs 14 lakh crore, or 90%, of the demonetised currency had been deposited with banks. At the time the decision to demonetise was announced, the view within the government was that roughly Rs 3 lakh crore of the scrapped currency would not come back into the system. There was also a view within a section of the government that this money , once legally extinguished, would constitute windfall gain for the RBI and could be transferred to the Centre as special dividend.

Top RBI officials have since said such a transfer would not be possible.

Pg. 13.

Jan 05 2017 : The Times of India (Mumbai)

UAE likely to seize Dawood assets worth Rs 15,000 crore

New Delhi:

TIMES NEWS NETWORK

Unconfirmed reports that the United Arab Emirates (UAE) government may have moved to seize terrorist mastermind and 1993 Mumbai blasts accused Dawood Ibrahim's assets on its soil set off fevered speculation in political and official circles.

Indian intelligence and investigative agencies as well as the ministry of external affairs insisted they were unaware of any such development.However, the assertions failed to quell the speculation about the UAE authorities following through the growing cooperation with India in the field of counter-terrorism by moving against the former boss of Mumbai underworld who has been designated a “ global terrorist“ .

There were indications that the reticence may be partly due to a desire to protect the UAE government's sensitivities and considerations of confidentiality .

Dawood, who is currently said to be based in Pakistan, has been closely tracked by India because of his complicity in the 1993 serial blasts in Mumbai as well as in terror acts masterminded by Pakistan's spy agency , ISI. The pursuit for him has been stepped up after the Modi government took office in 2014.

Dubai used to be the favourite hunting ground for Dawood who acquired huge assets in the Sheikhdom.

One official source said India's caution may have to do with UAE Sheikh Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi, due to arrive in India later this month as chief guest for the Republic Day . National security adviser Ajit Doval is said to have pursued the matter with UAE and requested the officials there to act and seize Dawood's property .

According to reports, when PM Modi, accompanied by Doval, visited UAE in 2015, issues pertaining to Dawood's property came up and India provided a confidential list of the underworld don's properties to the UAE government.These properties, according to media reports, are believed to be worth Rs 15,000 crore.

BJP put the media reports on seizure of Dawood's assets on its website, describing it as a major achievement of the Modi government.

Pg. 13.

Jan 05 2017 : The Times of India (Mumbai)

SP neta bodyguard's account sees Rs 100cr deposit

Faiz Siddiqui

Kanpur:

The police gunner of a Samajwadi Party MLA was on Tuesday shocked to find that nearly Rs 100 crore had been deposited in his account in State Bank of India.

Constable Ghulam Jilani had Rs 73,000 in his salary account, but received a ministatement of Rs 99,99,02,724 after withdrawing Rs 4,000 from the ATM of SBI's main branch on Mall Road on Tuesday . Jila ni immediately apprised MLA Irfan Solanki, who informed senior district authorities.

Solanki, MLA from Seesamau constituency , alleged that it's a conspiracy by his rivals against his gunner who has been attached to him for the past four years. “ The SP MLA said that he along with his gunner met district magistrate Kaushal Raj Sharma to apprise him about the issue. “I have requested the district magistrate to investigate the matter thoroughly ,“ said Solanki.

Jilani's wife Noori Khatoon said the money which has not been earned by her husband was `haraam'. “I am least bothered how it all happened. My only worry now is that the money earned by my husband should be safe,“ said Noori. DM Sharma said the district administration has asked the SBI officials to look into the case.