News explanation june 2014

NEWS EXPLANATION For the Sake Of truth.......

DCP LIC. NO. F-2 (N-22) PRESS/2014

01. Head Lines

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01. delhi police info.

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04. EDUCATIONS

PM Modi scraps 4 Cabinet panels including one on UIDAI

Life : “I am going to quit smoking tomorrow...” How many times have you said this and how many more times have you heard it?

Smokers, like alcoholics, make this pledge many times in their Earlier, Modi had abolished all the 30 Groups of Ministers (GOMs) and Empowered Groups of lives because they need to and they break it for the simple reason that pledges are always Ministers (EGoMs) and told ministries and departments to take decisions on pending matters. meant ...

Sending out yet another loud and clear signal of his

Standing Committees of the Cabinet: 1. Cabinet Committee

intent for “more governance, less government”, Prime

on Management of Natural Calamities: The functions of

Minister Narendra Modi on Tuesday scrapped four

this Committee will be handled by the Committee under

Standing Committees of Cabinet. The Committees were

the Cabinet Secretary whenever natural calamities occur.

on Management of Natural Calamities, Prices, World Trade

2. Cabinet Committee on Prices: The functions of this

Organisation Matters and UIDAI Aadhaar. Aadhaar was one

Committee will be handled by the Cabinet Committee on

of the pet projects of the Congress-led UPA government to

Economic Affairs. 3. Cabinet Committee on World Trade

check corruption and bring transparency in governance.

Organisation Matters: The functions of this Committee will

Earlier, Modi had abolished all the 30 Groups of Ministers

be handled by the Cabinet Committee on Economic Affairs

(GOMs) and Empowered Groups of Ministers (EGoMs)

and, whenever necessary, by the full Cabinet. 4. Cabinet

and told ministries and departments to take decisions on

Committee on Unique Identification Authority of India

pending matters. Also read: Ministers to submit property

related issues: Major decisions in this area have already

details within 2 mths: Modi The Congress had attacked Modi

been taken and the remaining issues will be brought to the

over his decision saying it was “symptomatic of autocratic

Cabinet Committee on Economic Affairs. The Prime Minister

regime” and noted that “no single person can be repository

will be re-constituting the Appointments Committee of the

of all wisdom”. Here is the full text of the release by Press

Cabinet, the Cabinet Committee on Economic Affairs, the

Information Bureau, Government of India PM discontinues

Cabinet Committee on Parliamentary Affairs, the Cabinet

four Standing Committees of Cabinet The Prime Minister Shri

Committee on Political Affairs and the Cabinet Committee on

Narendra Modi has decided to discontinue the following four

Security.

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Maha CM Chavan asks Mayors 5 U.S. Soldiers, 1 Afghan Killed to suggest an alternative to by “Friendly Fire” Strike LBT Maharashtra Chief Minister Prithviraj Chavan

Five U.S. servicemembers and at least one Afghan

today asked the Mayors in the state to consult

soldier have been killed in what appears to be one

local traders on an alternative to the controversial

of the deadliest instances of friendly fire of the war

Local Body Tax, so that the government can take

in Afghanistan. The soldiers were mistakenly killed

a decision during the ongoing monsoon session

by an airstrike that was called in by U.S. troops to

of the Legislature. Traders are opposing the LBT,

beat back a Taliban ambush. The incident occurred

which was brought in to replace octroi. Chavan

in Zabul province where soldiers were conducting

today addressed a meeting of Mayors on the issue. security operations ahead of Saturday’s presidential Also read: PM Modi scraps 4 Cabinet Committees

runoff. An earlier “friendly fire” strike killed five

“The government is committed to ensuring that

Afghan soldiers in March. Afghans have opposed

autonomy of the civic bodies remains intact. The

the airstrikes for mistakenly killing civilians, with

Mayors should tell the government whether we

President Hamid Karzai refusing to sign a long-term

should revert to octroi or hand over the recovery of security deal with the United States until the air LBT to the sales tax department. With LBT, revenue attacks stop. of civic bodies increased, but there were some hiccups in the implementation of the new tax,” he said. The CM however made it clear that rejection of both LBT and octroi can not be accepted. The monsoon session is to end this week. Meanwhile, traders here rejected Chavan’s proposal that LBT can continue with Sales Tax Department collecting the payments. “The representatives of the industry and trade bodies categorically rejected options given by the Chief Minister... Instead, they maintained that LBT and octroi are needed to be abolished completely. “They submitted that

Nigeria: Boko Haram Abducts 20 Women In Nigeria, suspected members of Boko Haram

have kidnapped at least 20 women, loading them into vans at gunpoint. The abduction took place in a nomadic settlement near the town of Chibok, where Boko Haram abducted more than 200 schoolgirls in April.

Supreme Court: Most Immigrants Must Restart Visa The Supreme Court has dealt a blow to young

there could be a surcharge on VAT and also (said)

immigrants who turn 21 while their petitions

that a simple, uniform, transparent tax should be

for U.S. visas are still pending. Each year, tens of

there with a single existing assessing agency,” said

thousands of young immigrants “age out” of the

Sandeep Parikh, Vice President, Chamber of Small

years-long visa process after applying with their

Industries Association. “The government thought

families. On Monday, the court backed the Obama

that we were open to separate LBT assessments.

administration’s stance that most immigrants must

But we do not want additional assessments,” he

restart their wait for a visa after they turn 21. Only

said.

those with applications filed by parents who are permanent U.S. residents can keep their place in

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Cos get more time to comply with deposit insurance norms

Quality of fiscal consolidation key this Budget: IGIDR

Making relaxation in implementation of new companies law, the government

shares her views on the same. Below is the verbatim transcript of Ashima Goyal’s

has given time till March next year for entities to comply with the requirement

interview with Shereen Bhan on CNBC-TV18.

of insuring deposits taken from the public. The move from the Corporate Affairs

Q: I know the wish list is perhaps going to be the long one that you presented to

Ministry, which is implementing the Companies Act, 2013, comes in the wake of

the finance minister but let me ask you about the sense that you get of what we

suggestions from stakeholders who had sought transitional time for complying

can expect in terms of tangible action in the budget?

with the new norm. Already, the Ministry has effected certain changes besides

A: I think they are largely going to be in terms of simplification and use of

providing clarity on various aspects of the new law -- whose many sections came

technology and so on, I don’t think there is much of an appetite for raising taxes.

into force from April 1. “In view of the suggestions received from the stakeholders

Q: I know you are not privy to the numbers that the government is working with at

to give transitional period for complying with the deposit insurance requirements,

this point in time as far as the budget is concerned but given what we have seen

the amendment in the relevant rule has been made allowing companies to accept

the finance minister state in terms of fiscal consolidation being a priority, spending

deposits without deposit insurance for one year ie till March 31, 2015,” the Ministry

on infrastructure being a priority, do you believe that 4.1 percent fiscal deficit

said in a statement today. Also Read: Pre-Budget meet: Bankers seek tax relief for

number is likely to be missed?

common man Under the new legislation, companies taking deposits are required

A: I think the discussion seems to suggest that more than fiscal consolidation, it is

to insure them. The norm is expected to help in curbing fraudulent investment

the quality of fiscal consolidation is important, on which the rating agencies also

schemes that dupe investors. Besides, the Ministry has provided clarification with

have an eye on. So considering that you have inherited something of a mess, if it

respect to companies facing difficulties in repayment of deposits. “With a view to

takes a couple of years to get back to the earlier track but at the same time you

allow relief to companies facing difficulties in repayment of deposits, provisions of

move towards increasing capacity and investment, enhancing expenditure, it

section 74(2) & (3) of the Act have been brought into force with effect from June 6,

could be through private public partnership etc, given that the current priority is

2014,” the statement said. Section 74(2) and (3) pertain to repayment of deposits

to kick-start growth, I think that could be acceptable.

that were accepted before commencement of the new Act. Further, the Company

Q: Any indication of the government’s thinking at this point in time in terms of

Law Board (CLB) has been allowed to exercise the powers to allow further time

tackling subsidies, in terms of tackling the large number of welfare schemes that

to companies for repayment of deposits/interest in certain cases, the Ministry

the United Progressive Alliance (UPA) had rolled out, was that up for discussion in

said. Among others, the Ministry had eased norms by saying that an independent

your meeting with Arun Jaitley?

director’s previous tenure would not be counted towards the ten-year period

A: Yes, there were a lot of suggestions with respect to that where some small cut,

limit, as mandated under the new companies law, provided that the individual is

some sort of efficiency, synergy could save a lot of money .

appointed afresh before March 2015. Under the new Act, an independent director can have a maximum of two tenures of five consecutive years (a total of ten years), with a cooling off period of three years.

The finance minister Arun Jaitley met with a group of economists ahead of the Budget. Dr Ashima Goyal of IGIDR, one of the economists who did meet Jaitley,

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