current affairs mba 7

8/3/2019 Current Affairs Mba 7

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LOKPAL COMPARISONS


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ACCOUNTABILTY OF LOKPAL

Jan Lokpal:

Any Citizen can go and complaint to

Supreme Court to remove a Lokpal ifthe Lokpal is not found to beaccountable in his/her actions.

Government Lokpal: Only Government has the power to

remove a Lokpal.

So according to governments draft,


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Corruption allegationsagainst Lokpal Members

Jan Lokpal:

Complaints of corruption against

Lokpal members will be heard by anindependent authority.

Government Lokpal:

Lokpal itself will hear complaints ofcorruption against its members!

Which is more accountable? Lokpal

hearing complaints against its own


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ro e corrup onallegations against MPs

in Parliament Jan Lokpal: Lokpal will have the power to

probe into allegations ofcorruption by Members inParliament like MPs taking bribeto vote! (Remember the Cash for

Votes Scandal? ) Government Lokpal:

Lokpal will not have any right torobe into alle ations of


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omp a n s aga nsGovernment Officers,

Public Servants Jan Lokpal: Lokpal can act on complaints

against ANY government officer. Government Lokpal:

Lokpal can act on complaints

against only Group A levelgovernment officers.

There are around 80 lakh state

government officials and 40 lakh


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Action againstgovernment officers

Jan Lokpal:

If a government officer delays the work ofa citizen beyond scheduled time frame

then he will be deemed corrupt by Lokpaland penalized for that.

Government Lokpal:

There is no penalization of governmentofficers who do not do their duties.

NOTE: The Government had earlier agreed

to the proposal in Jan Lokpal on this issue.But this a ain is missin from the


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Corruption allegationagainst Judiciary

Jan Lokpal:

Lokpal will have the authority to

investigate allegations of corruptionagainst judges.

Government Lokpal:

Lokpal will NOT have the authority toinvestigate allegations of corruptionagainst judges.

NOTE: Government wants judiciary


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Corruption allegationsagainst Prime Minister

Jan Lokpal:

Lokpal will have the authority to

investigate allegations of corruptionagainst the Prime Minister.

Government Lokpal:

Lokpal will NOT have the authority toinvestigate allegations of corruptionagainst the Prime Minister.

NOTE: Government wants CBI to


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Anti Corruption Branchof CBI

Jan Lokpal:

The Anti Corruption Branch of

CBI will be merged with Lokpalto give it more independence.

Government Lokpal:

The Anti Corruption Branch ofCBI will continue to remain withCBI, which means direct

government control over it,because CBI is controlled b


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Dismissal of CorruptPublic Servant

Jan Lokpal:

Lokpal will have the power to

dismiss a corrupt public servant fromjob.

Government Lokpal:

Lokpal will have no power to dismissa corrupt public servant. Theconcerned minister will decide

whether to dismiss a corrupt publicservant or not.


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Protection against falsecomplaints Jan Lokpal:

Lokpal will impose fine to those who make false complaintsor ill motivated complaints. Lokpal will decide whether acomplaint is false or not.

Government Lokpal:

Lokpal will send those who make false complaints to jail fora period of two to five years! The accused can also go tocourt against the complainant, and in this case, the legalexpenses of the accused will be borne by the government,where as the complainant has to pay for the legal expenses

from his own pocket.

This one clause in the governments draft is enough toensure that nobody will dare to go and complain to Lokpal.If the corrupt who are also generally rich, are able to muteall evidences against them, then the person who

complained will have to go to jail, do trips to courts, bear


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Selection of the LokpalMembers

Jan Lokpal: An independent search committee which consists of retired

constitutional authorities (like judges, eminent IAS officersetc) will prepare the first list of eligible candidates. Thenan independent selection committee comprising of two

politicians, four judges and two retired constitutionalauthorities will do the selection. So there is no scope forgovernment interference in the selection process of Lokpalmembers here.

Government Lokpal:

A Panel of 10 members, 6 of whom are politicians, 5 ofwhom are from the ruling alliance/ruling party will selectthe Lokpal members. Even the search committee whichsearches for eligible lokpal members will be selected bythe above mentioned selection committee. 5 members

from ruling alliance and totally 6 politicians in a group of10 will ensure that overnment will be able to a oint its


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Corruption by BusinessEntities

Jan Lokpal:

Lokpal will give permission to tap

phones of people suspected to beinvolved in corruption.

Government Lokpal:

Home Secretary will give permissionto tap phones of people suspected tobe involved in corruption!

What if the permission sought is


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Corruption by BusinessEntities

Jan Lokpal: If Lokpal finds that business

entities are involved in

corruption, then Lokpal will havethe right to ban such companiesfrom taking part in future

government contracts and toblack list them.

Government Lokpal:


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Protection to complainants,whistle blowers

Jan Lokpal:

Lokpal will provide adequate

protection and security tocomplainants and whistleblowers.

Government Lokpal:

No mention about any protectionto those who complaint aboutcases of corruption.


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Conclusion In summary, looking at the governments version

of the Lokpal bill, doesnt it look like that thegovernment wants to simply pass a bill for thenamesake of it and wash its hands off from theentire issue? After 45 years of waiting, the

government simply wants to create an illusion thatit has passed an anti-corruption law. Do we reallyneed another dummy institution at the tax payersexpense?

Just look at the governments draft once again andyou will wonder, who actually comes UNDER thejurisdiction of Lokpal according to thegovernments lokpal draft. No Prime Minister, noMPs, no judiciary, no state level Lokayuktas, no

government officers other than Group A


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Rajinder Sachar, former chiefjustice of the Delhi high courthas said that the Lokpal Bill

proposed by the Government ofIndia is

shamefully toothless and meant

just to give a false reassurance tothe people that the government isserious in its fight against

corruption.


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Read on at..

http://www.hitxp.

com/articles/politics/differences-

comparison-anna-jan-lokpal-

overnment-bill/


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What is the

corporates politician

connect?


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Corporates and Lokpal -views

"Lokpal should cover corruptionin higher bureaucracy andamong political executives.

There may also be a provision, asin UK bribery law, where a bribegiver is punished. We are also

not against bringing corporatesunder the purview of Lokpal,'' :Central Vigilance CommissionerPradeep Kumar


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Sajjan Jindal, Vice-Chairman ofJSW Group maintains that toomuch of policing will killentrepreneurship: "Businessshould be allowed to function in aliberated environment. Lokpallooks at corruption in public life.It should not cover business as itwill stifle decision making''


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Ergo Chairman and businesshistorian Gita Piramal : "Firstof all, the bill is not ananswer to corruption. Interms of corporates there areenough laws in the system,what we lack is the politicalwill to enforce them.Corporate-centric Lokpal is

nt r-int itiv . Y n t


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Maruti Suzuki ChairmanRC Bhargava: "Companies

are not governmentinstitutions and functionindependently. Hence, the

relevance of Lokpal bill forcompanies needs to beseen."


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BDO Consulting ChairmanShailesh Haribhakti: "corporatesare under the scrutiny of theCorporate Affairs Ministry andregulators like Sebi. So long asthere is a single authorityabjudicating, it does not matter.Multiple agencies will certainlycreate confusion."


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2G


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What is 2G?

In theworld ofcell


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The 2G Scam- what is it?

2G Spectrum allocationscam of Rs. 170,000 Cr.

(Rs. 1.7 trillion) in theIndian Telecom industry

is considered as one ofthe largest scam inrecent times.

The background of the


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The background of thescam

At the time of scam, the Indian telecom

industry was growing exponentially. Thesubscriber base had grown from 10 millionsubscribers in 2002 to 250 million in 2007, dueto low tariffs and falling prices of handset. Thewireless subscriber base had grown from 52.22

million in 2005 to 165.11 million in 2007 whichfurther grew to 391.76 million in 2009.

The growing demand of the wirelessconnections caught the attention of the

companies who wanted to enter telecom sector.The companies who were allotted the 2Glicenses did not have any experience in thetelecom sector or the technology and thus soldtheir stake to foreign telecom companies athigh prices. The 2G spectrum was allotted in


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The 2G Scam- what isit?

In 2007-08, when the governmentissued 122 new telecom licenses,several rules were violated andbribes were paid to favourcertain firms. Several licenseswere issued to firms with no priorexperience in the telecom sectoror were ineligible or hadsuppressed relevant facts


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The licenses were allotted on the basis of"First come First serve method" rather thanthrough the process of auction as stipulatedunder the national telecom policy 1999.

The ministry had also reduced the cut offtime form October 1, 2007, to September

25, 2007 without consulting and informingother related ministries, even though whenit is mandatory to have approval from thecabinet committee (economic affairs) in

such important decisions.

The Telecom Ministry informed thosecompanies whom they wanted to allot

license about the cut off date in advance


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The telecom ministry's process ofissuing licenses lacked transparencyand was undertaken in an arbitrary,unfair and inequitable manner

Police accused Andimuthu Raja, thethen-telecom minister, of havingtaken bribes from two firms which

are now the local joint venturepartners of Telenor and Etisalat .

The scandal has also touched Raja's

regional DMK party, a leading ally of


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What was the fallout? The report sparked political outrage

and the main opposition BharatiyaJanata Party all-but-shut an entiresession of parliament demanding a

special parliamentary probe. Raja was forced to resign and was

arrested over the report. The

telecom ministry is consideringwhether to cancel some 85 licenceswhich the audit report says wereissued to firms which were ineligiblefor them.

a oes s mean or


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a oes s mean orinvestment in India?

While corruption itself has beenlargely shrugged off by investors,the regulatory uncertainty fromthe review of past governmentdecisions is a source of concernto investors.

If the telecom ministry doesdecide to cancel some or all of

the 85 licenses it is scrutinizing,


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CREDIT RATINGS


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WHAT IS CREDIT RATING?

A credit rating evaluates the creditworthiness of an issuer of specifictypes of debt, specifically, debt

issued by a business enterprise suchas a corporate , bank or agovernment.

It is an evaluation made by a creditrating agency of the debt issuerslikelihood of default. Credit ratings

are determined by credit ratings


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Ratings for banks

A: "superior intrinsic financialstrength

B: "strong intrinsic financial strength

C: "adequate intrinsic financialstrength

D: :"modest intrinsic financialstrength, potentially requiring someoutside support at times

E: "very modest intrinsic financial


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On 04 Oct 2011, Moody'slowered SBI's rating to D+

from C- on account ofweaker capital and poorasset quality. SBI's gross

bad loans was at 3.28%,highest among PSU banks,while its core capital (Tier

I fell below 8% as on


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Moody's Corporation performsinternational financial research andanalysis on commercial and

government entities. The companyalso ranks the credit-worthiness ofborrowers using a standardized

ratings scale. It has a 40% share ofthe world market, as does its mainrival, Standard and Poors and FitchRatings


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Tier 1 Capital

The theoretical reason for holdingcapital is that it should provideprotection against unexpected losses.

Tier 1 capital is the core measure ofa bank's financial strength from aregulator's point of view

It is composed ofcore capital, whichconsists primarily of stocks andreserves of earnings retained by a

corporate bank.

Wh t D C dit


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What Does CreditWorthiness Mean?

An assessment of the likelihood thata borrower will default on their debtobligations. It is based upon factors,

such as their history of repaymentand their credit score. Lendinginstitutions also consider the

availability of assets and extent ofliabilities to determine the probabilityof default.

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