Five ultras arrested, arms seized
Two jawans, 2 militants killed in Kashmir

Excelsior Correspondent

SRINAGAR, Jan 5: Two soldiers and two militants were killed while two Central Reserve Police Force (CRPF) personnel injured in the night-long encounter in Kashmir valley where the security forces arrested five militants and recovered huge cache of arms and ammunition from their possession.

An official spokesman said that both the militants, who were holed up at Awantipora in Pulwama district were killed. The encounter ensued after a search party was attacked by the militants.

Two soldiers also lost their lives and two CRPF personnel were injured, he said, adding search was on in the area till late this evening.

Meanwhile, Army and Police arrested three militants and recovered arms and ammunition, including hand grenades in border town of Uri in north Kashmir, an official spokesman said.

He said troops of 10 JAKLI during a routine checking of vehicles at Sultan Daki Check Post in Uri recovered 700 rounds of AK rifle. All the seven passengers, travelling in the vehicle and driver were later handed over to police.

The spokesman said that Sub Divisional Police Officer of Uri, Mohammed Yousuf during the questioning of passengers and driver, detained three suspected persons identified as Mohammad Rafiq Bhatti, Abdul Majid and Mukhtiyar Ahmad Sheikh.

On sustained questioning, they admitted they were smuggling out the ammunition. Later, police raided house of Bhatti and recovered eight grenades, 235 pistol rounds, 386 rounds of AK ammunition and 24 rounds of 12 bore gun.

Further questioning of the accused was going on, he said.

The spokesman said that police also arrested a Hizbul Mujahideen (HM) militant Javid Ahmad at Chandkote in Baramulla alongwith one AK rifle, three magazines, 88 rounds of ammunition and one pouch.

Further, the security forces arrested an Over Ground Worker (OGW) of Lashkar-e-Toiba militant outfit from Baramulla district.

Troops of 29 Rashtriya Rifles launched a surveillance cum ambush operation in Pakipur village last night during which an OGW of LeT was apprehended.

He has been identified as Javed Ahmed Lone, who confessed being a close associate of LeT militant Tahir.

One pistol, a pistol magazine, 38 rounds of pistol ammunition, two electric detonators and one remote control IED circuit with battery, were recovered from his possession. The OWG was later handed over to Police.

Meanwhile, Army troops averted a tragedy by timely detection of an Improvised Explosive Device (IED) in Bandipora district.

A Road Opening Party of Army detected the IED planted by militants on Sopore-Bandipora road at Manginipora, an official spokesman said, adding a Bomb Disposal Squad of Army was called which destroyed the explosive.

The spokesman said that police recovered body of a 50-year-old man, who had died under mysterious circumstances in Baramulla district.

The body identified as that of Jagjeet Singh, a resident of Chandsuma village, was recovered from Jetty Khwaja Bagh area this morning.

A case has been registered to ascertain Singh’s cause of death.

Ministers, MLAs looting public money: Farooq

Excelsior Correspondent

Bishnah, Jan 5: National Conference patron Dr Farooq Abdullah today said if NC is voted to power in the State, it will strengthen Panchayati system by amending the Panchayat Raj Act.

Addressing a public rally here today, Dr Abdullah said that Panchayat system has collapsed due to the non-serious approach of the coalition Government. "Promises were made to people that this decades old system will be restored in the State but even after holding the Panchayat elections, the system was not allowed to flourish", he regretted.

He said that if NC is voted to power, the party will amend the Panchayat Raj Act to strengthen the system at its gross root level.

Lambasting the coalition Government for its "anti-people policies," Dr Abdullah said corruption was eating the vitals of society but at the same time it was adding to luxuries and comfort of Ministers and Bureaucrats in the State.

"The poor are getting poorer and Ministers are filling their own pockets", he said adding, "the so called war against corruption has turned out to be war for minting public money and looting State exchequer".

The much hyped State Accountability Commission (SAC), constituted by the Government has been rendered helpless only because the Ministers and MLAs of the ruling alliance were getting exposed in the Commission, he said.

Dr Abdullah further said that his party is formulating a special employment package for unemployed youth of the State, which will be made public very soon.

Accusing the ruling coalition alliance of insulting political values and standards, NC president Omar Abdullah said that some political parties were having a habit of exciting desires and expectations of common masses by "deceitful promises" which was sending wrong signals among the people.

Addressing the rally, he alleged that both Congress and People's Democratic Party (PDP) lacked ideology and were now racking up issues only to hoodwink the people "to meet their political ends."

"We have seen nothing but slogans rising and hollow promises", Omar said adding, "the ruling parties were just exciting desires of the people without delivering anything at the ground level".

Without naming anyone, he said some people were degrading political system by making "phony claims" and promises and ‘thanks’ to them the political values and modesty have taken a beating in the State.

"We have seen what the coalition partners can do to remain in power", he said adding, "the manner in which the coalition partners made allegations against each other to quench their thirst for power has created a State of anarchy", he observed.

The NC president came down heavily on the critics of National Conference saying that the rally organised by the party in Jammu today is an eye-opener for such elements which were raising fingers at the party's ideology.

The NC, he said, is the only party acceptable to all three regions of the State. "Today a renowned Congress family has joined hands with us, which is indication of the fact that even die hard Congressmen have realized that NC is the only party where they can serve the people better", he asserted.

"The myth that NC is the party dominated and acceptable in Kashmir region only is broken and people in large number are joining hands with us, which has turned the party bigger and stronger", he added.

"I am not here to seek your votes but you should count achievements and failures of the coalition Government", he said adding, "the Government is answerable to people for its deeds and misdeeds during its tenure".

He asked the people to strengthen the party at gross root level so that NC is voted back to power. "People have understood the political ill will of the coalition alliance and it is certain that the era of corruption, nepotism and favoritism is at its near end".

Vikas Dutt, grandson of Pandit Trilochan Dutt, a former Minister and veteran Congress leader, who died six years ago, joined National Conference on the occasion along with his supports. He was welcomed in the party by NC patron Dr Farooq Abdullah and president Omar Abdullah.

Speaking on the occasion, Dutt said that anti-people policies of the Congress have forced him to quit the party. "I am joining National Conference, which is the only party with secular ideology in the State, to serve my people and State", he added.

The rally was also addressed by NC provincial president Ajay Sadhotra, Dr Kamal Arora, Bunty Singh and Surinder Singh Tony. Besides them the meeting was attended by a large number of NC leaders including former Education Minister Mohammad Shafi Uri, Aslam Goni and MLC Davinder Singh Rana.

J&K Bank drawing huge foreign investments
*Trend reversed: Locals get more lending

By Sanjeev Pargal

JAMMU, Jan 5: Jammu and Kashmir Bank Ltd (JKBL) has been drawing huge foreign investments, running into crores, which was one of the reason that its share had recently crossed Rs 1000 mark.

"Presently, foreign investment in J&K Bank has touched 37 per cent, an all time high", J&K Bank chairman, Dr Haseeb Drabu, who is also Economic Advisor to the State Government, told the Excelsior.

The foreign investment is pouring from top countries like United States, England, Japan, Mexico, Middle East, Canada and Norway, he disclosed.

This is for the first time in 69 year history of the Bank that it has received such a massive flow of money from foreign investors including some leading corporate houses.

More and more foreign investors were preferring J&K Bank as they were sure that the Bank was fully stabilised and their investments were safe, he pointed out.

With a view to give benefit of heavy flow of funds to J&K Bank to the people of Jammu and Kashmir, the JKBL management had changed the previous practice of raising money from the State and lending it outside.

"Earlier, the Bank used to lend 70 per cent finances outside the State and 30 per cent in J&K. Now the ratio is 55:45 i.e. the Bank was lending 55 per cent finances in J&K and only 45 per cent outside", Dr Drabu said.

The new strategy of J&K Bank to lend more than 50 per cent money in the State has been benefiting people of the State, especially those in need of finances, immensely, he added.

Massive foreign investment coupled with lending more money in the State has taken profits of Jammu and Kashmir Bank from Rs 100 crore to Rs 400 crore within two and a half years. Profits of the Bank were Rs 100 crore in 2004-05, Rs 190 crore in 2005-06, Rs 280 crore in 2006-07 and were set to cross Rs 400 crore this year, the JKBL chairman said.

Figures revealed that profits of J&K Bank have registered a substantial increase of 400 per cent in two and a half years.

Non Performing Assets (NPA) of the Bank have also gone down considerably. Out of Rs 22,000 crore worth advances of J&K Bank, only Rs 400 crore were in NPA. Out of Rs 400 crore NPA, Rs 360 were fully protected with guarantee of assets, which left just Rs 40 crore NPA, Dr Drabu said.

In last two balance sheets, there were no adverse comments by the auditors, which was a clear indication of transparent working of the Bank, he said, adding earlier there used to be 15-30 qualified charges in every balance sheet.

Admitting that the Bank did face some problems in financing Central and State level schemes for unemployed youths due to varied reasons, Dr Drabu, however, said that the Bank has its own schemes for unemployed youths and was involved in massive micro level financing.

"A large number of unemployed youths have been provided financing to the tune of Rs 3 lakh each. Even a number of vendors have been sanctioned advances worth Rs 1 lakh each. All these accounts were running good and we are receiving returns regularly", he said.

As far as financing of Central and State Government schemes for unemployed youths was concerned, he noted that these schemes involved three to four players including the Bank, Government of India, State Government and the entrepreneur.

Sometimes there is no margin money or Central subsidy while on other occasions, it is seen that selection criteria of Government Departments is not transparent.

For J&K Bank staff, a fast track promotion policy has been adopted, he said, adding 25 per cent salary of the staff has been made performance related.

Northern Command chief meets Antony
Kapoor-Panag row at flashpoint

NEW DELHI, Jan 5: The row between Army Chief General Deepak Kapoor and Northern Command head Lt Gen H S Panag reached a flashpoint today when the General Officer Commanding-in-Chief (GoC-in-C) of the country’s most prestigious, powerful and sensitive command met Defence Minister A K Antony to formally "lodge a protest" over his proposed recommendation of transfer to the Central Command.

Top Defence sources said Gen Panag was closeted with Mr Antony in South Block for about half-an-hour.

They said Gen Panag briefed the Defence Minister on the developments taking place in the Northern Command after he ordered administrative action against several officers, including a Major General, for ‘procedural lapses’ in the purchase of tents and related equipment.

The ‘tent scam’ took place when Gen Kapoor was the GoC-in-C of the Northern Command.

Gen Panag had sought an appointment with the Defence Minister following his proposed recommendation of transfer to the Lucknow-based Central Command from March 1 just nine months before his retirement on December 31 this year.

"The Defence Minister gave a patient hearing to him, but made no promises. The ball is now in his (Mr Antony’s) court," the sources said.

They said the Defence Minister has ample time with him to decide on the issue as the present Chiefs of the Central and the Eastern Commands were going to retire by the end of February.

Gen Panag is being replaced by Lt Gen P C Bhardawaj, who is at present heading the Leh-based XIV Corps.

Lt Gen A K Singh, who is commanding the Strike Corps and most likely to become the next Army Chief, is slated to take over the charge of Eastern Command from Lt Gen J S Jamwal, who is due to retire soon.

"The Defence Minister is in no hurry to take a decision on the issue. But, he would like to settle the matter as soon as possible," the sources added.

The meeting is being perceived as a direct confrontation between the Army Chief and Gen Panag as the reported differences between the two have now come out in the open.

The sources said there was nothing "new or unusual" in the differences between the Army Chief and other Commanders or among the Generals.

"But, the way the differences have been made public is a very serious issue. The most unfortunate part being that the media has been used as a tool to serve the personal and vested interests," they added.

Defence officials here do not give much weight to the meeting between the Defence Minister and Gen Panag.

"The meeting is nothing unusual or against the norms...It was just a courtesy call," they said.

The sources said