The Tear

The shiver

Like a mild

Convulsive Shudder

Travels Upwards,

Culminating In a Tear .

I am remembering you

PNB fraud: All you need to know about the Rs11,000cr scam

https://qz.com/1208133/punjab-national-bank-fraud-nirav-modi-accused-of-swindling-1-8-billion-was-with-narendra-modi-at-davos-just-weeks-ago/ 

https://www.ndtv.com/opinion/10-questions-for-arun-jaitley-on-nirav-modi-scam-1813252


Punjab National Bank has detected a ~Rs11,000cr scam where billionaire jeweller Nirav Modi acquired fraudulent Letters of Undertaking (LoUs) following which PNB has suspended its ~10 employees in connection with the case. However, the bank did not specify the quatum of liabiltiy for the bank and if the alleged fraudulent LoUs were backed by cash margins.

What is a Letter of Undertaking?
A Letter of Undertaking (LoU) is an assurance given by one bank to another to meet a liability on behalf of a customer. LoUs are used in international banking transactions. An LoU is issued for overseas import remittances. This transaction involves four parties. (A local issuing bank, an overseas receiving bank, an importer and a beneficiary in overseas).

How it works?
Importer applies to local issuing bank, which then issues LoU in favour of overseas branches of Indian banks. Based on this, foreign branches issue buyer’s credit. Hence, in essence, LoU is a promise to pay. LoUs are communicated through a Society for Worldwide Interbank Financial Telecommunication (SWIFT) instruction. A SWIFT instruction represents a consent from bank, which passes from multiple layers of checks. LoU is commonly used in Jewellery and Gems businesses, which involves large number of international commercial transactions.

Allegations by PNB
PNB stated that its two employees issued buyers’ credit allegedly and communicated SWIFT instructions to the overseas branches of Indian banks, without making entries in the banking system. The instructions were to raise LoUs for Nirav Modi’s firms, Diamond R US, Solar Exports, and Stellar Diamonds.

Impact on PNB
According to the complaint, the LoUs were issued for the overseas branches of Allahabad Bank and Axis Bank, post which these banks have given money to the beneficiary entity on behalf of Modi’s firms. As a result, (as per Hong Kong Monetary Authority norms) PNB will have to settle the LoUs with these branches. This may result in higher provisioning for the next few quarters in PNB’s books if it is unable to recover the money.

REMEMBERING A SPECIAL VALENTINE...THREE YEARS AGO

http://www.livemint.com/Leisure/TIoEvzuPhNjv2hOC6lAYBM/The-ride-back-home.html

Please Save The Lungs Of Mumbai

https://act.airalert.in/petitions/save-aarey-forest-mumbai-s-green-lungs?bucket

Feku Federalism Exposed - by Derek O'Brien

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Derek O'Brien

Published : February 12, 2018 11:06 IST

As a grandchild of Indian Railways - my maternal grandfather and several members of my mother's extended family worked for the Railways - I have a special affection for this institution, and for trains in general. My political career has seen me observe and work with the Railways in more than one capacity, and I used to be a keen student of the Railway Budget till the BJP-led government went and derailed it. Since then I have listened to the Finance Minister's Budget speech with extra care - both to try and make sense of the government's financial and economic plans, as well as to pick up the appallingly few lines that are now devoted to the gigantic infrastructure of the Indian Railways.

After this year's Budget speech, I put 12 specific questions in parliament to the Finance Minister, relating to the Railways. In the normal course, I would have put these questions to the Railway Minister, but last year, the BJP government subsumed the Railway Budget into the General Budget. So here are my questions. There's no politics here, no rhetoric. Just 12 hard questions.

One: The published operating ratio shows a figure of 94 per cent. Now consider the absolute numbers. When Suresh Prabhu presented his final Railway Budget, as the then Railway Minister, the revenue target was Rs 1 lakh, 90,000 crore. The next time the Finance Minister announced a revenue target of Rs 1 lakh, 72,000 crore. The actual figure that was finally released was Rs 1 lakh, 59,000 crore. We've done the math. These numbers don't add up to an operating ratio of 94 per cent. The real number is in excess of 100 per cent. Will the government please come clean?

Two: My second question relates to the Depreciation Reserve Fund. This fund is a critical component of Railway finances. It is used for ongoing maintenance. A General Manager dips into it without delay and long-winded references to Delhi to repair tracks and other crucial infrastructure to prevent accidents and mishaps and save lives. This fund has been reduced to a tenth of its value - from Rs 5,000 crore to Rs 500 crore. Why? Will the SanrakshaAccount of Rs 20,000 crore replace it? What are the modalities of the new system, if any? Or is passenger safety not a priority?

Three: From 2000 to 2014, the CAGR - Compounded Annual Growth Rate - of Indian Railways was six per cent. In the past three years - the glorious "Achhe Din" of BJP raj - the CAGR is down to two per cent, as per my calculations. What's going on?

Four: The government claimed it removed a separate Railway Budget to prevent favouritism to particular states and to save Indian Railways from regional and political lobbying. Noble idea. But do consider that the allocation under the head of Railways in this Budget is 160 per cent higher (when compared to the previous year) for Uttarakhand, 30 per cent for Rajasthan, 20 per cent for Gujarat, and 20 per cent for Madhya Pradesh. These are all BJP-ruled states. For Delhi, it is minus 40 per cent; for Kerala, it is minus 25 per cent; for Bengal, it is minus 14 per cent. These are all non-BJP ruled states. Hello, Sir-ji?

Five: In the end, it all boils down to performance, right? You promised new lines of 800 km in a year. Actual delivery: 400 km. You promised gates conversion of 900 km. Actual delivery: 550 km. Doubling of tracks: you promised 1,800 km. Actual delivery: 900 km. The shortfall is 50 per cent. What does one call this? "Achhe half a din"?

Six: Is Indian Railways on the Union list, State list or Concurrent list of the Constitution? Like a good lawyer, the Finance Minister will laugh and ask me to consult my class VII civics book. I know the answer, Sir, but then tell me why the Railways is asking state governments to bear more and more of infrastructure cost? What happens to poorer states such as those of the Northeast - for example Tripura or Nagaland, where your party is currently promising the moon? What happens to debt-stressed states like Bengal? Is this FekuFederalism, with the states paying the Centre rather than the other way round? Next, as border states, will some states have to pay its share of the Defence Budget as well?

These were my first six questions. I will write on the remaining six tomorrow. I must emphasise that all 12 questions have already been asked in parliament. The government has said it will respond in a month - sometime in the middle of March. I guess it needs time to find the answers, just like it still needs time to count the notes that came in after demonetization.

Anyway, see you with six more questions tomorrow.

Derek O'Brien is leader, parliamentary party Trinamool Congress (RS), and Chief National spokesperson of the party.

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.

Care For Old Parents Do Not Leave Them

https://youtu.be/lqupsHdc2x0

Super Blood Blue Moon

The rare astronomical phenomena of 31st January 2018 which lasted for four hours is compresses to about one minute here.

https://youtu.be/2eC0_CyGIA8