Mukesh, Nita's help saves day for Anil

Agencies
March 19, 2019

New Delhi, Mar 19: Embattled billionaire Anil Ambani on Monday warded off a possible jail term as RCom cleared dues of a Swedish service provider at the eleventh hour with money received from elder brother Mukesh and his wife Nita, whom he thanked for standing by him in trying times and extending "timely support".

Anil's heavily debt-laden Reliance Communications made a Rs 550 crore payment, including interest, to Ericsson just a day before the expiry of the deadline set by the Supreme Court to clear dues or face a three-month jail term.

Soon after making the payment, RCom announced the termination of a Rs 17,000 crore deal to sell telecom assets like spectrum, fibre and tower to Mukesh's Reliance Jio, citing delays in approvals from the government and lenders.

Anil, whose businesses in telecom and power sectors went into heavy debt in the face of regulatory headwinds and intense competition, thanked Mukesh and his wife Nita for bailing him out.

"My sincere and heartfelt thanks to my respected elder brother, Mukesh, and Nita, for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support," a late night statement issued by Anil's firm quoted him as saying.

Anil said he and his family "are grateful" and "deeply touched with this gesture" that they "have moved beyond the past".

In the statement, RCom said Rs 550 crore dues to Ericsson, including interest dues, has been made in compliance with the Supreme Court judgement.

However, the company did not give details about the source of funds but cited "timely support" from Mukesh in the trying times.

The two brothers had fought a bitter public battle after his father Dhirubhai died without leaving a will. They split his businesses between themselves, with Anil getting telecom and power while Mukesh retained oil and petrochemical businesses.

The split did not end the feud and the two bickered over the commitment of Mukesh' Reliance Industries for the supply of gas to Anil's power plants. In 2008, Anil's RCom wanted to merge with South Africa's MTN but the move was thwarted by Mukesh citing his holding right of the first refusal.

Since then, the two brothers scrapped a no-compete agreement and Mukesh re-entered telecom business in 2016 offering free voice call for life and data at dirt cheap prices.

As debt grew, RCom, in December 2017, entered into a deal with Jio to sell spectrum and other assets such as fibre network and telecom towers for an estimated Rs 17,000 crore.

But the deal could not progress amid regulatory hurdles faced as the Department of Telecommunications wanted a written assurance on who would pay for RCom's dues such as spectrum fee.

Jio refused to make a commitment to pay for such fee and lenders to RCom also played hardball, resulting in the deal falling through.

In separate statements, RCom and Jio announced the scrapping of the deal, citing delays in getting approvals from the government and lenders.

"The said transactions have become incapable of being consummated in accordance with the terms thereof, on account of various factors and developments since the execution of the said agreements nearly 15 months ago...," RCom said.

Jio said the master agreement for the acquisition of certain specific assets of RCom and the spectrum trading agreement for change in allotment of the certain specific spectrum stand terminated.

This, it said, also follows the Board of Directors of RCom passing a resolution to seek fast track resolution through bankruptcy court and the National Company Law Appellate Tribunal (NCLAT) on February 4 restricting the sale, transfer or alienation of any movable or immovable property of RCom.

"The termination of the master agreement shall not, in any manner, affect the rights and obligations of the parties, accrued prior to the date of termination," it said.

An Ericsson spokesperson confirmed that it has received balance payment of Rs 458.77 crore (principal amount) from RCom on Monday. Together with Rs 118 crore, it had previously paid, RCom has cleared all dues including interest.

Last month, the Supreme Court held Ambani in contempt for not paying Ericsson's dues despite promising to do so. The court had warned to send Anil as well as Chhaya Virani and Satish Seth - chairmen of two RCom units -- to jail if they fail to pay the dues in four weeks. The deadline expires on Tuesday. The company suffered a blow when National Company Law Appellate Tribunal (NCLAT), last week, refused to free up Rs 260 crore tax refunds withheld by the lenders. Banks had opposed release of the tax refunds.

In 2017, Ericsson moved a bankruptcy court alleging it had not been paid dues around Rs 1,600 crore after signing a deal in 2013 to operate, maintain and manage the telco's nationwide network. It extracted a personal guarantee from Ambani to pay the dues.

RCom scrip closed at Rs 4 a share on the BSE Monday, 9.30 per cent lower than the previous close.

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News Network
April 25,2024

EVM.jpg

Electronics Corporation of India Ltd and Bharat Electronics Ltd have refused to disclose the names and contact details of the manufacturers and suppliers of various components of EVMs and VVPATs under the RTI Act citing "commercial confidence", according to RTI responses from the PSUs to an activist.

Activist Venkatesh Nayak had filed two identical Right To Information applications with the ECIL and BEL, seeking the details of the manufacturers and suppliers of various components used in the assembling of the electronic voting machines (EVMs) and voter-verifiable paper audit trail (VVPATs).

The VVPAT is an independent vote verification system which enables electors to see whether their votes have been cast correctly.

The ECIL and the BEL, public sector undertakings under the Ministry of Defence, manufacture EVMs and VVPATs for the Election Commission.

Nayak also sought a copy of the purchase orders for the components from both PSUs.

"Information sought is in commercial confidence. Hence details cannot be provided under Section 8(1)(d) of the RTI Act," BEL said in its response.

A similar response was sent by ECIL which said the details requested are related to a product which is being manufactured by ECIL, and third party in nature.

"Disclosing of details will affect the Competitive position of ECIL. Hence, Exemption is claimed under section 8(1) (d) of RTI ACT, 2005," it said.

In response to the purchase order copies, ECIL's central public information officer said the information is "voluminous" which would disproportionately divert the resources of the Public Authority.

"Further, the information will give away the design details of EVM components. The same may pose a danger to the machines produced. Hence, the exemption is claimed U/s 7(9) and under section 8(1)(d) of RTI Act, 2005," ECIL said.

Section 8(1)(d) of the RTI Act exempts from disclosure the information, including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information.

Section 7(9) of the Act says the information shall ordinarily be provided in the form in which it is sought unless it would disproportionately divert the resources of the public authority or would be detrimental to the safety or preservation of the record in question.

"I don't know whose interests they are trying to protect against the right to know of close to a billion-strong electorate. ECIL said that disclosure of the purchase orders will reveal the design details of the components and this may pose a danger to the machines produced. ECIL did not upload even a signed copy of its reply on the RTI Online Portal," Nayak said.

He said it is reasonable to infer that the two companies are not manufacturing every single item of the EVM-VVPAT combo or else the two companies would have replied that they are manufacturing all these components internally without any outsourcing being involved.

"But the electorate is expected to take everything about the voting machines based on what the ECI is claiming in its manuals and FAQs," Nayak said.

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April 23,2024

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The Karnataka government's decision to categorise the entire Muslim community as a backward caste for reservation purposes in the state has drawn criticism from the National Commission for Backward Classes (NCBC), which said such blanket categorisation undermines the principles of social justice.

According to the data submitted by the Karnataka Backward Classes Welfare Department, all castes and communities within the Muslim religion have been enlisted as socially and educationally backward classes under Category IIB in the State List of Backward Classes.

The NCBC, during a field visit last year, examined the state's reservation policy for OBCs in educational institutions and government jobs.

"All castes/communities of Muslim religion of Karnataka are being treated as socially and educationally backward classes of citizens and listed as Muslim Caste separately under Category IIB in the State List of Backward Classes for providing them reservation in admission into educational institutions and in appointments to posts and vacancies in the services of the State for the purpose of Articles 15(4) and 16(4) of the Constitution of India," the NCBC said in a statement on Monday night.

This categorisation has led to the provision of reservation benefits for 17 socially and educationally backward castes under Category I and 19 castes under Category II-A, respectively.

The NCBC said the blanket categorisation of Muslims as a backward caste undermines the principles of social justice, particularly for the marginalised Muslim castes and communities identified as socially and educationally backward.

However, the NCBC emphasised that while there are indeed underprivileged and historically marginalised sections within the Muslim community, treating the entire religion as backward overlooks the diversity and complexities within Muslim society.

"The religion-based reservation affects and works against ethics of social justice for categorically downtrodden Muslim castes/communities and identified socially and educationally backward Muslim castes/communities under Category-I (17 Muslim castes) and Category II-A (19 Muslim castes) of State List of Backward Classes. Hence, socially and educationally backward castes/communities cannot be treated at par with an entire religion," the NCBC stated.

The NCBC also voiced concern over the impact of such reservations on the overall framework of social justice, particularly in the context of local body polls.

While Karnataka provides 32 per cent reservation to backward classes in local body elections, including Muslims, the Commission stressed the need for a nuanced approach that accounts for the diversity within these communities.

According to the 2011 Census, Muslims constitute 12.92 per cent of the population in Karnataka.

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News Network
April 26,2024

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The Supreme Court of India on Friday, April 26, rejected pleas seeking 100% cross-verification of votes cast using EVMs with a Voter Verifiable Paper Audit Trail (VVPAT) and said “blindly distrusting” any aspect of the system can breed unwarranted scepticism.

A bench of Justices Sanjiv Khanna and Dipankar Datta delivered two concurring verdicts. It dismissed all the pleas in the matter, including those seeking to go back to ballot papers in elections.

An EVM comprises three units – the ballot unit, the control unit and the VVPAT. All three are embedded with microcontrollers with a burnt memory from the manufacturer. Currently, VVPATs are used in five booths per assembly constituency.

EVM VVPAT case: Supreme Court issues two directives

1.    Justice Khanna directed the Election Commission of India to seal and store units used to load symbols for 45 days after the symbols have been loaded to electronic voting machines in strong rooms.

2.    The Supreme Court also allowed engineers of the EVM manufacturers to verify the microcontroller of the machines after the declaration of the results at the request of candidates who stood second and third. The top court said the request for the verification of the microcontroller can be made within seven days of the declaration of the results after payment of fees.

Option for candidates to seek verification of EVM programmes

•    Candidates who secure second and third position in the results can request for the verification of burnt memory semicontroller in 5% of the EVMs per assembly segment in a Parliamentary constituency. The written request to be made within seven days of the declaration of the results.

•    *On receiving such a written request, the EVMs shall be checked and verified by a team of engineers from the manufacturer of the EVMs.

•    Candidates should identify the EVMs to be checked by a serial number of the polling booth.

•    Candidates and their representatives can be present at the time of the verification.

•    After verification, the district electoral officer should notify the authenticity of the burnt memory.

•    Expenses for the verification process, as notified by the ECI, should be borne by the candidate making the request.
What did the Supreme Court say?

•    "If EVM is found tampered during verification, fees paid by the candidates will be refunded," the bench said.

•    "While maintaining a balanced perspective is crucial in evaluating systems or institutions, blindly distrusting any aspect of the system can breed unwarranted scepticism...," Justice Datta said.

Who filed the petitions?

NGO Association for Democratic Reforms, one of the petitioners, had sought to reverse the poll panel's 2017 decision to replace the transparent glass on VVPAT machines with an opaque glass through which a voter can see the slip only when the light is on for seven seconds.

The petitioners have also sought the court's direction to revert to the old system of ballot papers.

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