TheIndian EXPRESS LATE CITY, 14 PAGES, JAIPUR, `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 SC/ST GOVT EMPLOYEES Data entry operator to diamond assorter among owners of firms, says ED complaint in PNB case KHUSHBOO NARAYAN MUMBAI, JUNE 5 OWNERS AND directors of at least five Hong Kong firms that allegedlyreceivedaboutRs8,270 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 BUSINESS AS USUAL BY UNNY ● AMBULANCE SCAM: EX-UNION MINISTER’S SON AMONG FOUR CHARGESHEETED BY CBI, PAGE 3 SANDEEP SINGH 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 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 inflow of Rs 11,772 crore. According to experts, this is a significant reason why Indian equities have held their ground despite a sharp outflow of foreign institutional money over the last two months. The other major factor is the sharp rise in domestic retail participation in Indian equities through the CONTINUED ON PAGE 2 Cong, BSP explore poll pact in MP, tie-up would have denied BJP 41 seats in 2013 LALMANI VERMA & AAROMAL DCRUZ NEW DELHI, JUNE 5 AS THE Congress and BSP negotiate the contours of a possible seat-sharing deal ahead of three crucial assembly elections, a pooling of votes polled in the 2013 Madhya Pradesh assembly 8 WORLD 7 IRAN EXPANDS NUKE SITE TO ENRICH MORE URANIUM THEIDEASPAGE Four years of hubris People now know that the government has only marginally built on the legacy of Cong-led governments He created over 15 dummy companies, says ED of five such firms — Brilliant Diamonds Ltd, Eternal Diamond Corp Ltd, Fancy Creation Co Ltd, Sino Traders Ltd and Auragem Company Ltd — were actually junior employees and ex-employeesof Modi’sFirestarGroup. Identifying some 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 CONTINUED ON PAGE 2 Appointments will be subject to final order on petitions before us: Bench Biggest outflow of foreign institutional money in 10 years NEW DELHI, JUNE 5 INSIDE Rs 30,000 every month, according to the the Enforcement Directorate. Referring to these findings in its prosecution complaint filed in the PNB scam case, the ED 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 election show that the BJP tally would have reduced by 41 seats had the Congress and BSP come together. While the BJP would have still formed government in MP, the BJP tally in Chhattisgarh would have reduced by 11 seats and the Congress-BSP alliance would have been in a position to form the government. And in Rajasthan, the BJP’s tally could have decreased by nine seats. The three BJP-ruled states will go to polls in November this year and Madhya Pradesh Congress president Kamal Nath is holding talks with BSP chief Mayawati on a seat-sharing arrangement, which sources said was almost hammered out. CONTINUED ON PAGE 2 Quota in job promotions not barred till we decide: SC ANANTHAKRISHNAN G NEW DELHI, JUNE 5 At the site of the Jaguar fighter crash that killed Air Commodore Sanjay Chauhan near Mudra, Kutch on Tuesday. PTI Air Commodore killed as Jaguar crashes in Kutch EXPRESS NEWS SERVICE RAJKOT, JUNE 5 ANAIRCOMMODOREwaskilled and scores of cows charred as a Jaguarfighterjetof theIndianAir Force crashed at Beraja village in Mundra taluka of Gujarat’s Kutch district on Tuesday morning. Police said a cattle herder sustained injuries as he was hit by falling debris of the plane. Defence spokesperson in Ahmnedabad, Lieutenant Colonel Manish Ojha, said that the fighter jet had taken off from Jamnagar airbase for a routine training sortiebeforecrashingat Beraja village around 10.30 am, killingthepilot.“Todaymorning, a Jaguar aircraft on a routine training mission from Jamnagar crashedaround10.30hours.The pilot, air commodore Sanjay Chauhan,sustainedfatalinjuries during the crash,” the Defence spokesperson said in a 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, Colonel Ojha said the Air Commodore was flying the plane alone. “He was a on a routine 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. Police said debris of the fighter jet fell in an open field around two kilometres from Beraja village. “The burning debris of the plane fell in an open CONTINUED ON PAGE 2 AMID A raging debate on the issue of reservations 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 reservationinpromotionsprovidedit 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 6 THEEDITORIAL PAGE Incitement to violence, Raj Kundra questioned propaganda on social by ED in Rs 2,000-cr media akin to waging Bitcoin fraud case war against Govt: HC EXPRESS NEWS SERVICE SOFI AHSAN CHANDIGARH, JUNE 5 DECLINING BAIL to an alleged member of terror group Babbar Khalsa International, the Punjab andHaryanaHighCourthasheld thatpropagandaandincitement to violence on social media is equivalent to collecting men for waging war against the Government of India, as defined under Section 122 of the Indian Penal Code. Instructing the trial court to decide the case within the next three months, Justice Sudip Ahluwalia,inhisJune1order,ob- served that though the accused had not been charged under Section 122 (collecting arms, etc, with intention of waging war againsttheGovernmentofIndia) but the material on record can leadtohisconvictionforitaswell. “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. CONTINUED ON PAGE 2 MUMBAI, JUNE 5 BUSINESSMANANDactorShilpa Shetty’s husband Raj Kundra was on Tuesday questioned by the Enforcement Directorate in connection with the Rs 2,000croreBitcoinfraudcase,inwhich the agency is probing Amit Bhardwaj of GainBitcoin company for allegedly duping more than 8,000 investors across the country. Kundra arrived at the ED’s Mumbai office at around 11.40 amandwasquestionedformore than eight hours. “Raj Kundra is not an investor who has been duped by GainBitcoin. The ED is questioninghimcurrentlyonhis role in the alleged fraud,” an ED sourcesaid,refusingtosharefurther details. Bhardwaj,themastermindof the alleged scam, was earlier arrested from the Delhi airport by the Pune police. Three cases of Bitcoin multi-level marketing (MLM) were registered against Bhadrwaj and his firms in Pune — two at Nigdi and one at Dattawadi police stations. The ED is probing Bhardwaj andsomeof hisassociatesunder the Prevention of Money Laundering Act (PMLA). Bhardwaj had launched the firstonlineretailBitcoinmarketplace in the country in 2014. He CONTINUED ON PAGE 2 ● PAGE ONE ANCHOR FENCED IN BY DOUBT, SHILLONG’S PUNJABI LANE HOPES FOR A CLEAN BREAK FROM THE PAST ABHISHEK SAHA SHILLONG, JUNE 5 “FOR ALL of us living in Punjabi Lane, our Punjabi identity is the foremost thing, rather than a religious identity. Ever since troublestartedinthisarea,wearetogether with our Sikh brothers,” says Sonu Chadha, a Christian Punjabi, as his friend ties a turban on him and they rush to the gurdwara to listen to a visiting Sikh leader from Punjab. The gurdwara is located on the second floor of a school building, a church stands next to it, while a few metres away is a temple where space is also kept aside for followers of a sub-sect of Sikhism called Udasi. However, it is this strong regional identity uniting residents of Punjabi Lane, overarching other differences, that makes 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 June 3. Security personnel chase away anyone trying to enter Punjabi Lane in Shillong on Tuesday. Abhishek Saha Punjabi Lane, or those trying to get out despite curfew. On Monday morning, a group of anxious men sat outside their homes discussing the stone-pelting and teargas shelling that had been on all nighttill5am.Inthemidstof her householdchores,NishaKaur,in her mid-20s and a mother of two, says, “Life in Punjabi Lane is fine but there have been worries since the violence began.” The original settlers in Punjabi Lane were Sikh Dalits brought here by the British to work as scavengers and sweepers. Himadri Banerjee, former professor of Indian history at CONTINUED ON PAGE 2 Jaipur 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 the landmark judgment in 1992 on 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... I am the CONTINUED ON PAGE 2 The Shangri-La moment BY PRATAP BHANU MEHTA
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