Economic slowdown a man-made catastrophe, govt to blame: P Chidambaram

Former finance minister and senior Congress leader P Chidambaramlaunched a strident attack on the government over the state of Indian economy on Thursday, a day after getting bail in the INX Media case.
Stating the last six quarterly GDP growth figures, Chidambaram said the upcoming quarters are not likely to be any better. He also raised doubts over the GDP numbers. "Please remember Dr Arvind Subramanian’s caution that 5 per cent under this government, because of suspect methodology, is not really 5 per cent but less by about 1.5 per cent," he said.
"Government has turned out to be an incompetent manager of the economy," he added. Naming Raghuram Rajan, Urjit Patel and Arvind Panagariya, Chidambaram said people who understand things were banished by this government.
To further his point on the poor state of the economy, Chidambaram cited falling rural wages, declining farmers' income, rising onion prices, among others.
"Government is calling the present slowdown ‘cyclical’. Thank god they have not called it ‘seasonal’. It is ‘structural’ and the government has no solutions or reforms that would address the structural problems," he said.
He called the economic slowdown a man-made catastrophe.
Asked for comments on privatisation of PSUs, Chidambaram said the BPCL sale is a scandal and who gets the company will reveal more about government's intent.
Speaking at Congress headquarters in Delhi, the former finance minister started his statement saying his first though after release from jail were "for the 75 lakh people of the Kashmir Valley who have been denied their basic freedoms since August 4, 2019".
I intend to visit Jammu and Kashmir if Centre permits, he said.

NSEL scam: HC asks Chidambaram to reply in 8 weeks or face ex-parte decree

The Bombay High Court has directed former finance minister P Chidambaram and two bureaucrats -- Ramesh Abhishek, former chairman of the Forward Markets Commission (FMC) and K P Krishnan, a former officer in the Union Finance Ministry -- to file their replies in eight weeks, to allegations made in a Rs 10,000-crore defamation suit filed by 63 Moons Technologies.
Hearing the case, Justice A K Menon warned that 63 Moons Technologies would be at liberty to apply for an ex-parte order if the three individuals named above fail to reply within two months. The case pertains to the Rs 5,600-crore payment default at 63 Moons subsidiary, National Spot Exchange Ltd (NSEL).

“While summons was served on them, they have not filed any reply so far. Hence, we approached the court for direction. The counsel appearing for Ramesh Abhishek sought six weeks to file a reply. The Bombay HC, however, granted eight weeks to them to complete all formalities, including discovery and inspection of documents. If they fail to file reply during this period, then 63 Moons will be at liberty to apply for ex-parte order,” said Vishwanathan Iyer, the counsel appearing for 63 Moons Technologies.
Meanwhile, the court rejected a plea by Chidambaram's counsel to grant the former finance minister some leeway on the grounds that he is currently in jail.
“Two month's time is more than enough to file written statements which the respondents are under obligations,” the court observed.
In its petition, 63 Moons charged Abhishek, Krishnan and Chidambaram with supporting a rival exchange and wielding their clout to introduce unjust regulations beyond their jurisdiction.

I was not hiding, but seeking protection from the law: Chidambaram

Former finance minister P Chidambaram on Wednesday claimed that he was not hiding but rather seeking protection from the law in the INX Media case, saying that he has not been accused of any offence and there was no chargesheet filed either by the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI) before a competent court.
"Even FIR recorded by CBI does not accuse me of any wrongdoing. I have not been accused of any offence, nor anyone else including any member of my family. There is no chargesheet filed either by ED or CBI before a competent court. Lies are being spread by pathological liars," Chidambaram said while addressing media at the AICC headquarters.

"I spent last night preparing my papers. I was not running away from justice, but was engaged in pursuit of justice. I believe that the foundation of a democracy is liberty, most precious article of the Constitution is Article 21 that guarantees life and liberty. If I'm asked to choose between life and liberty, I will choose liberty," he added.

What is govt's 'tearing hurry' to 'fix' RBI capital framework: Chidambaram

Former Union finance minister P Chidambaram on Sunday asked the Centre what was its "tearing hurry" to "fix" the capital framework of Reserve Bank of India when the ruling dispensation had just four months to complete the term.
In a series of tweets, the senior Congress leader slammed the government for allegedly seeking funds from the RBI despite claiming that its (Centre) fiscal math was correct.

"The NDA government has competed 4 years and 6 months of its term. It has effectively 4 months left. What is the tearing hurry to 'fix' the capital framework of RBI?" he said.
Chidambaram said if the government did not need any more money this financial year, why was it "mounting pressure" on the central bank in the last four months of its tenure. "Why did it keep silent for 4 years and 6 months?" he said.
The Congress leader said the government had claimed that its "fiscal math is correct" and "boasts" that it had given up Rs 700 billion of borrowing for 2018-19.
"If so, why does it need money from the reserves of RBI this year?" he said.
The central government had on Friday said it was discussing an "appropriate" size of capital reserves that the central bank must maintain, but denied seeking a massive capital transfer from the RBI.
The RBI has a massive Rs 9.59 trillion reserves and the government, if reports are to be believed, wants the central bank to part with a third of that fund -- an issue which along with easing of norms for weak banks and raising liquidity has brought the two at loggerheads in recent weeks.
Economic Affairs Secretary Subhash Chandra Garg took to Twitter on Friday to clarify that the government was not in any dire need of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 trillion.
"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 trillion, as speculated," he tweeted.
"Government's FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. The government has actually foregone (Rs) 700 billion of budgeted market borrowing this year," Garg said.
The official said the only proposal under discussion was to "fix appropriate economic capital framework of RBI".
Economic capital framework refers to the risk capital required by the central bank while taking into account different risks.