TheIndian EXPRESS LATE CITY, 18 + 4 (NEWSLINE) PAGES, PUNE, `5.00 ● WEDNESDAY, JUNE 6, 2018 ● WWW.INDIANEXPRESS.COM ● DAILY FROM: AHMEDABAD, CHANDIGARH, DELHI, JAIPUR, KOLKATA, LUCKNOW, MUMBAI, NAGPUR, PUNE, VADODARA JOURNALISM OF COURAGE Nirav’s 5 dummy firms in Hong Kong whose owners earned Rs 8,000 got Rs 8,000 cr LoUs Data entry operator to diamond assorter among owners of firms, says ED complaint in PNB case KHUSHBOO NARAYAN MUMBAI, JUNE 5 ● GOA GOVT FIGHTS ‘POLITICAL VACUUM’ CHARGES PAGE 6 OWNERS AND directors of at least five Hong Kong firms that allegedly received about Rs 8,270 crore from Letters of Undertaking (LoUs) issued by Punjab National Bank, on behalf of jeweller Nirav Modi, used to earn only between Rs 8,000 and Rs 30,000 every month, according to the Enforcement Directorate. Referring to these findings in its prosecution complaint filed inthePNB scam case, theED has said that Modi created over 15 “dummy companies” overseas to allegedly rotate the LoU funds “in the guise of export-import transactions”. It claimed that the directors of five such firms — Brilliant Diamonds Ltd, Eternal Diamond Corp Ltd, Fancy Creation Co Ltd, Sino Traders Ltd and Auragem He created over 15 dummy companies, says ED Company Ltd — were actually junior employees and ex-employeesof Modi’sFirestarGroup. Identifying some of these persons, the ED stated in its complaint: ■Bhavik Shah, a former diamond assorter for Firestar International,wasnamedthedirector of Hong Kong-based BrilliantDiamonds.Shahusedto earn Rs 10,478 as salary every month as director of Brilliant Diamonds, which did business worth Rs 959 crore with Firestar International in 2015-16. ■ Ashish Bagaria, a former data entry operator of Firestar India, was made the director of Eternal Diamond Corp at a monthly salary of Rs 8,133. EternalDiamondexecutedtransactions worth Rs 929 crore with FirestarInternationalin2015-16. ■ Nilesh Khetani, the owner of Fancy Creation, earned Rs 15,657 every month, while the company engaged in business transactions worth Rs 596 crore with Firestar International. Khetani was a former data entry operator with Jewellery Solutions, a Nirav Modi firm. CONTINUED ON PAGE 2 Biggest outflow of foreign institutional money in 10 years SANDEEP SINGH NEW DELHI, JUNE 5 A SHARP rise in outflow of funds byforeignportfolioinvestorsbetween April and May due to rise in yields of the US treasury and growing concerns over rising crude oil prices, and its impact on the currency and current accountdeficit,haveresultedinthe biggest outflow of foreign institutional money in any calendar year in the last 10 years. While the net FPI outflow in April stood at Rs 15,561 crore ($2.35 bn) and Rs 29,775 crore ($4.4 bn) in May, the aggregate for the first five months this year amounted to a net outflow of The site of the Jaguar fighter crash that killed Air Commodore Sanjay Chauhan near Mundra, Kutch Tuesday. PTI Rafale deal on CAG Jaguar crashes in Kutch, Air Commodore killed radar, GSTN too EXPRESS NEWS SERVICE THE RAFALE fighter deal is on theradarof theComptrollerand Auditor General, a source in the national auditor said Tuesday. AlsounderscrutinyistheGoods and Services Tax Network (GSTN)thatprovidestheITbackbone of the GST system. “The Rafale deal has to be audited by the CAG. For us, it is a routine audit,” the source said of the fighter deal with the French fortheIAF— thedealhasbeenat the centre of a political row with the Opposition Congress alleging that the NDA government paid much more than what Dassault Aviation, the Rafale manufacturer, had quoted earlier when the UPA was in power. “WehavetodotheRafaleaudit like any high value transaction needs to be audited,” the source said, but did not spell out atimelineforitscompletion.The source did, however, indicate that audit of a high value transaction, unlike a performance audit, is completed quickly and is always a “priority”. In February, The Indian Express cited official sources to reportthattheNDAgovernment negotiated procurement of 36 Rafale fighter jets from France, under a government-to-government deal, for a price lower than the one negotiated by the UPA under a commercial bid by Dassault Aviation. RAJKOT, JUNE 5 Political row over deal The figure of Rs 525 crore or approximately Euro 79 million per Rafale aircraft which Opposition parties were citing, government sources had said, wasbasedonthemanufacturer’s 2007 bid at the then exchange rate (I Euro = Rs 66.60). This, sources said, was the cost of a ‘bare’ Rafale, without weapons, avionics, radars, missiles and otherspecificcustomisationsfor the IAF. “The IAF told us that because we were buying only 36 Rafale and not 126, they needed them to be more potent. Meteor missiles, 75 per cent serviceability and some special requirements were insisted upon by the IAF. It even asked for two separate maintenance support flights for redundancy. These imposed additional costs which were not eventhoughtof in2011.Theyare two separate packages,” government sources had said. The CAG is also auditing the GSTN. Apart from several parameters being looked into the CONTINUED ON PAGE 2 AN AIR COMMODORE was killed as a Jaguar fighter jet of the Indian Air Force (IAF) crashed at Beraja village in Mundra taluka of Gujarat’s Kutch district on Tuesday. Police said a cattle herder sustained injuries as he was hit by falling debris of the plane. Defence spokesperson in Ahmedabad, Lieutenant Colonel Manish Ojha, said the fighter jet hadtakenoff fromJamnagarairbase for a routine training sortie before crashing near Beraja village around 10.30 am. “Today morning, a Jaguar aircraft on a routine training mission from Jamnagar crashed around 10.30 hours. The pilot, air commodore Sanjay Chauhan, sustained fatal injuries during the crash,” Colonel Ojha said in a press release. Chauhan was a recipient of the Vayu Sena Medal and the Air Officer Commanding of Jamnagar Air Force Station. Commissioned in fighter stream of theIAFonDecember16,1989, he was a Qualified Flying InstructorandExperimentalTest Pilot with over 3,800 hours of service flying, officials said. Speaking to The Indian Express,ColonelOjhasaidtheAir Commodore was flying the plane alone. “He was on a rou- Incitement to violence, propaganda on social media akin to waging war against Govt: Punjab and Haryana HC SOFI AHSAN CHANDIGARH, JUNE 5 DECLINING BAIL to an alleged member of terror group Babbar Khalsa International, the Punjab and Haryana High Court has held that propaganda and incitement to violence on social media is equivalent to collecting men for waging war against the Government of India, as defined under IPC section 122. The High Court made this observation while ruling against the bail plea of Arvinder Singh, a resident of Pallian Khurd in Nawanshahr, who was arrested in May 2016. The FIR against him said he had arrived from Doha in Qatar seven-eight months earlier, and was recruiting youth for “terrorist activities”. The FIR stated Arvinder had been in touch with Pakistanbased BKI activists while in Doha where he had gone for employment in 2011. Ordering the trial court to decide Arvinder’s case within three months, Justice Sudip Ahluwalia, in his June 1 order, observed that though the accused had not been charged under IPC section 122 (collecting arms, etc with intention of waging war against the Government of India) but the material on record could lead to his conviction for that as well. “It can be safely held that the petitioner by way of collecting ‘men’, with the intention of either waging or being prepared to wage war against the Government of India, would be liable under section 122 of the IPC, which is punishable at par with section 121-A of IPC itself, for which he is already facing trial,” the order stated. In May 2016, Nawanshahar police had registered a case against Arvinder under IPC sections 121, 121-A (waging, or attempting to wage war, or abetting waging of war, against the Government of India) and section 10/13 of the Unlawful Activities (Prevention) Act. CONTINUED ON PAGE 2 ● PAGE ONE ANCHOR FENCED IN BY PAST, SHILLONG’S PUNJABI LANE HOPES FOR A CLEAN BREAK ABHISHEKSAHA SHILLONG, JUNE 5 “FOR ALL of us living in Punjabi Lane, our Punjabi identity is the foremostthing,ratherthanareligious identity. Ever since trouble started in this area, we are together with our Sikh brothers,” says Sonu Chadha, a Christian Punjabi,ashisfriendtiesaturban on him and they rush to the gurdwara to listen to a visiting Sikh leader from Punjab. The gurdwara is located on thesecondfloorofaschoolbuilding, a church stands next to it, whileafewmetresawayisatem- plewherespaceisalsokeptaside for followers of a sub-sect of Sikhism called Udasi. However, it is this strong regional identity uniting residents of Punjabi Lane, overarchingotherdifferences,thatmakes its divide with the city’s majority Khasi population sharper. Sinceclasheseruptedfollowing an altercation between a Khasi bus driver and a woman from the Punjabi Lane on May 30, the locality next to Shillong’s commercial hub and its largest traditional market place of Iewduh,orBaraBazaar,hasbeen under almost continuous curfew, except for seven hours on Appointments will be subject to final order on petitions before us: Bench NEW DELHI, JUNE 5 CONTINUED ON PAGE 2 NEW DELHI, JUNE 5 Quota in job promotions not barred till we decide: SC ANANTHAKRISHNAN G Rs 32,078 crore ($4.4 bn). This marks the highest outflow seen in any calendar year since2008,whenFPIspulledout a net of Rs 41,216 crore ($9.3 bn) from Indian markets amid a global financial crisis. The next big outflow was seen in 2016 when they pulled out a net of Rs 23,079 crore ($3.19 billion). However,theFPIoutflowthis year is very different from what it was 10 years ago. In 2018, only 5 per cent of the total outflows (Rs 1,599 crore) has been from equity markets and the remaining from the debt market. In 2008, the net outflow from equities was Rs 52,987 crore while the debt markets saw a net RAVISH TIWARI SC/ST GOVT EMPLOYEES Punjabi Lane in Shillong on Tuesday. Abhishek Saha June 3. Security personnel chase away anyone trying to enter Punjabi Lane, or those trying to get out despite curfew. OnMondaymorning,agroup of anxious men sat outside their homesdiscussingthestone-pelting and teargas shelling that had been on all night till 5 am. In the midst of her household chores, Nisha Kaur, in her mid-20s and a mother of two, says, “Life in PunjabiLaneisfinebuttherehave been worries since the violence began. ”The original settlers in Punjabi Lane were Sikh Dalits brought here by the British to workasscavengersandsweepers. CONTINUED ON PAGE 2 tine training mission when the plane crashed. No information on the cause of the crash is availableasyet.ACourtof Inquiryhas been ordered to investigate as to what led to the crash,” he said. “The burning debris of the plane fell in an open field. A few cows grazing in the area were burnt to death. A cattle herder sustainedminorinjuries,”saidM S Bharada, SP, Kutch (west). “We havecordonedoff thecrashsite.” WITH PTI INPUTS AMID A raging debate on the issue of reservation in promotions, the Supreme Court Tuesdaysaidthegovernment“is not debarred from making promotions in accordance with law”, but “subject to further orders” and “pending further consideration of the matter”. Legal experts said what this essentiallymeansisthatthegovernment can extend reservation to promotions as envisaged by the Constitution, but this has to bestrictlyinaccordancewiththe lawasitstandsnow.Andthelaw that currently holds is the 2006 judgment of the Supreme Court in M Nagaraj & Others vs Union of India. That order upheld the validity of Article 16 (4A) — a special provision which provides for reservation for promotion only to SCs and STs — and said the government can provide reservation inpromotionsprovidedit is backed by compelling reasons like proof of backwardness and inadequacy of representation and ensure that it does not affect the overall efficiency of administration. AspertheorderTuesday,any such appointment will also be subject to the final outcome of petitions which have raised the 10 THEEDITORIAL PAGE question and are pending before the apex court. The bench of Justices A K Goel and Ashok Bhushan was hearing the Centre’s plea in connection with an order of the Delhi High Court which, in August2017,struckdowna1997 circular, issued by the Department of Personnel and Training, extending reservation in promotion to SC and ST employees beyond the five years stipulated by the apex court in thelandmark1992judgmenton Indira Sawhney vs Union of India. The High Court had said that this was not supported by any quantifiable data to prove conditions of backwardness etc. Appearing for the Centre in the Supreme Court, Additional Solicitor General Maninder Singh submitted that the entire process of promotion had come to a “standstill” due to orders of various High Courts on the matter and that the apex court too had ordered status quo in one of them. He pointed out that there were separate verdicts by the High Courts of Delhi, Bombay and Punjab and Haryana on the issueof reservationinpromotion to SC/ST employees. “How is promotion taking place as of now,” the bench asked. To this, the ASG replied, “Theyarenot.Itisallatstandstill. This is the problem... CONTINUED ON PAGE 2 The Shangri-La moment BY PRATAP BHANU MEHTA
Indian Express Limited is an Indian news media publishing company. It publishes several widely circulated dailies, including The Indian Express and The Financial Express in English, the Loksatta in Marathi and the Jansatta in Hindi.