MUMBAI, June 18:
The Reserve Bank today kept interest rates unchanged giving priority to checking inflation over growth, disappointing India Inc and retail borrowers who were expecting at least 0.25 per cent rate cut.
It also rejected the widespread demand for reduction in Cash Reserve Ratio (CRR) to pump in more money into the banking system.
Unveiling the mid-quarter monetary policy review, RBI said, “reduction in the policy interest rate at this juncture, rather than supporting growth, could exacerbate inflationary pressure”.
While the short term lending rate (repo) has been kept unchanged at 8 per cent, the CRR, portion of deposits banks are required to park with the RBI, will be 4.75 per cent.
The wholesale inflation was 7.55 per cent in May. At the retail level, the Consumer Price Index (CPI) inflation for May was 10.36 per cent.
RBI’s action, according to Finance Minister Pranab Mukherjee, was influenced by the current price situation.
“(High inflation)…Might have weighed their (RBI’s) decision making process…Normally in mid-quarter review, it is not necessary for the Governor to consult the Minister,” he said in New Delhi after the policy announcement.
Mukherjee had said on Saturday that he was expecting the RBI to “adjust” the monetary policy to fuel growth.
Stock markets, which opened with gains in the morning on rate cut hopes and on positive developments in Greece, reacted negatively. The BSE Sensex fell sharply by over 200 points after the policy announcement.
Assocham President Rajkumar Dhoot said, “We are disappointed that RBI ignored all expectations, including observations of the Finance Minister about the need for a rate cut.”
Chairman of Prime Minister’s Economic Advisory Council (PMEAC) C Rangarajan said RBI has probably decided to wait for more time before taking policy action.
“Perhaps the RBI wants to wait for some more time…The end of the quarter may be the appropriate time to make some decision,” he said, adding that the central bank might take some steps at the next policy review.
“I would think that six weeks from now, when the next review takes place…That would be the critical point…When policy decision would be clear,” Rangarajan said.
The only important decision that RBI announced in its mid-quarter review was to provide some help to exporters. It raised the export refinance credit limit from 15 per cent to 50 per cent with a view to releasing additional liquidity of about Rs 30,000 crore, equivalent to about 0.5 per cent of reduction in the CRR.
The decision, RBI said, would augment liquidity and encourage banks to increase credit flow to the export sector.
Countering the argument that high interest rate has been the reason behind the record dip in growth, RBI said the real effective bank lending rates are still lower than the high growth period of 2003-2008.
“This suggests that factors other than interest rates are the contributing more significantly to the growth slowdown,” RBI added.
The cautious stance comes at a time when pressure has been mounting on the Mint Road mandarins to do something to revive the sagging growth and boost sentiment, which dipped to a nine-year low of 5.3 percent for three months ending March.
The GDP growth for the fiscal 2011-12 also plunged to 6.5 per cent, lower than the 6.7 per cent reported during the peak of post-Lehman collapse credit crisis.
Bankers, led by the country’s largest lender State Bank of India, were rooting for a cut in CRR saying it will help in quicker transmission while a slew of think-tanks and analysts were expecting a 0.25 per cent cut in repo rates, given the dismal growth data.
Commenting on the RBI status quo on rates, CII Director General Chandrajit Banerjee said, “Inflation is going up because of supply-side issues. We are extremely disappointed (over unchanged rates).”
Keeping in view the current industrial and economic scenario, he said, “the RBI should immediately cut interest rates by 1 per cent”.
Ficci Secretary General Rajiv Kumar said RBI could have helped in increasing investments by reducing rates.
In its guidance, RBI said future policy actions would be guided by the evolving growth-inflation dynamics, with an eye on the external and domestic development that contribute to lowering inflation risks. The next policy review will be announced on July 31.
RBI said management of liquidity is a key concern and it will continue buy government bonds.
On the rupee fall, it said this should make the country’s exports competitive overtime and act as a demand stimulus.
The political inability to pass on elevated crude prices to consumers is resulting in a widening of the current account deficit, and will end up crowding out investment at a time when encouraging investment is imperative from the growth perspective, RBI said.
On the troublesome economic situation globally, it said the evolution of the euro-zone crisis which has a bearing on the capital inflows, will be a factor to look out for.
Between March 2010 and October 2011, RBI had cut repo rates a record 13 times, by 350 basis points, in its battle against inflation.
After a gap of three years, on April 17, 2012, RBI had slashed short term lending rate by 0.50 per cent to 8 per cent. It had indicated then that its space to cut rates further was difficult. (PTI)

NEW DELHI, June 18:
Exposing corruption is “for public good” and news article written for the same without any “ulterior motives” cannot be termed as libellous, a Delhi court has said while absolving an editor and a co-editor of a local weekly of the charges of causing defamation.
The court said the first exception to section 499 of the IPC (defamation) requires to be seen whether the imputation is for public good and added that exposing corruption “certainly” falls under that category.
It said there may be cases where the expose is made with ulterior motives but it needs to be proved by the complainant.
“Exposing corruption of the government department is certainly for public good. It is the duty of every responsible citizen to expose corruption.
“There may be certain cases where an individual or any other body of individual or corporate body exposes corruption for seeking revenge or for ulterior motives. In such cases the ulterior motives have to be proved by the complainant,” said Metropolitan Magistrate Rajinder Singh.
The court’s order came on a defamation case filed by a former Indian Institute of Public Administration professor, seeking prosecution of the editors of Jan Vikas, a Delhi-based weekly, for publishing a news ‘No action by municipality despite court orders’.
The complainant told the court that the “libellous” news naming him was published in December 2007. The article was about “unauthorised constructions” in South Extension-I, a posh south Delhi locality, he said.
The complainant said the newspaper editor, who had also been his tenant, was involved in a property dispute with him and was “vindictive” against him.
The editor and co-editor of the weekly, however, denied the charges contending that the article was published in “good faith” for exposing corruption in public good.
They said the article did not target any individual and apart from complainant it also carried reference to other properties.
“The said article was meant to highlight the inaction of authorities,” they contended.
The court after going through the news item concluded that “on a wholesome reading of article, it appears that the article does not specifically target any individual, although it refers the complainant by name”.
It said the article emphasis upon the “inaction of the MCD” and “there is no material on record to show or prove that the article was written by the accused persons out of malice”. (PTI)

MUMBAI, June 18:
Maharashtra Government today contested in the Bombay High Court the CBI’s jurisdiction to probe the Adarsh Housing scam, nearly a year-and-a-half after it registered an FIR in the case involving former Chief Minister Ashok Chavan, bureaucrats and retired army officers.
State Government’s counsel Anil Sakhare told the court that the CBI did not have the jurisdiction to probe the matter as neither the State Government nor the High Court had handed over the investigation to it.
A division bench of justices S A Bobade and Mridula Bhatkar directed Sakhare to file an affidavit stating that the State Government had not given its consent to CBI to investigate the scam.
“A judicial commission has already submitted a report stating that the land where the Adarsh building stands belongs to the State Government and not the Defence Ministry. Hence CBI cannot come into the picture. Under the Delhi Police Special Establishment Act under which CBI has been formed, the agency can probe a matter only if the State Government or the High Court hands over probe,” Sakhare argued.
Senior counsel Shekhar Naphade, appearing for Adarsh society, also argued that CBI does not have jurisdiction to investigate the matter. The court directed the society also to file an application on this.
Meanwhile, the CBI, which had assured the court at the last hearing on April 30 that it would file a charge sheet in the case by June 15, today said it would be submitted within 10 days.
“Investigations are at the fag end. Charge sheet will be filed within 10 days,” CBI counsel Ejaz Khan told the court after which the bench adjourned the hearing till July 4.
CBI had begun a probe in the Adarsh scam in 2010 on the directions of the Ministry of Defence.
In January 2011, the agency had registered a case against 14 persons including former Chief Minister Ashok Chavan, retired army officers, politicians and bureaucrats.
Although 9 of the accused were arrested in March this year they were subsequently released on bail after CBI failed to file charge sheet within the stipulated 60-day period.
Of the nine accused, those who secured bail include IAS officer Pradeep Vyas, former deputy secretary in Urban Development Department P V Deshmukh, Brigadier (retd) M M Wanchoo, retired Defence Estates Officer R C Thakur, Major General (Retd) A R Kumar, Major Gen (Retd) T K Kaul and former MLC Kanhaiyyalal Gidwani.
The accused have been charged with criminal conspiracy and various sections of the Prevention of Corruption Act and Benami Transactions (Prohibition) Act.
The scam pertains to alleged irregularities in securing various clearances in violation of environmental and other norms relating to construction and allotment of flats in the 32-storey building said to have been originally meant for families of Kargil heroes and war widows in upmarket Colaba in south Mumbai.
The MoD had ordered a CBI probe in the Adarsh scam on the recommendation of the Army Chief following a preliminary inquiry.
Besides CBI, the Enforcement Directorate and Income Tax department are also probing the irregularities.
Apart from Chavan, two former Maharashtra Chief Ministers Sushilkumar Shinde and Vilasrao Deshmukh are also under the lens for granting various clearances in violation of norms. (PTI)

NEW DELHI, June 18:
Though US is visualising an increasing role for India in Afghanistan as it prepares for draw down of its security forces, and copes with its deteriorating ties with Pakistan, India would be playing its role with a caution in the country.
The unexpected Taliban praise for India that came yesterday recognises the limits that India places itself on it while delving into Afghanistan, observers here feel.
Taliban spokesman Zabihullah Mujahid said India has done well to resist US pressure for greater involvement in Afghanistan.
Scholars keeping watch on developments in the region feel that by softening its stance towards India, Taliban is addressing both the international and the domestic constituency.
“First they want to show to the international community that they were not going to act just as blind hardliners and would be playing their role with responsibility after the US-led Western forces withdraw in 2014, and secondly that they also want to please their domestic constituency by praising India for resisting the US pressure.”
Their remarks on India also indicate they might be sending a message to Pakistan that they might take an independent course if they want to.
There is also a view that that the Taliban softening of stance
towards India could be afterall part of the overall progression that was being achieved in the talks with the US that are taking place in the third country.
The Strategic Dialogue between India and US that concluded in Washington last week has clearly indicated the trajectory of India-US cooperation in Afghanistan. Besides the role that India is playing in the development of infrastructure in Afghanistan, the US wants it to go more into strengthening the capacity of security forces to take command of the situation when the NATO forces withdraw from the country in 2014.
Their decision to hold a trilateral dialogue with the Government of Afghanistan is significant. The two countries have already sighed separate Strategic Partnership agreement with Afhanistan.
A joint statement after the India-US strategic dialogue said the two countries “intend to seek new opportunities to intensify their consultation, coordination and cooperation to promote a stable, democratic, united, sovereign and prosperous Afghanistan.
They intend to explore opportunities to work together to promote Afghanistan’s development, including in areas such as agriculture, mining, energy, capacity building and infrastructure,” the joint statement said.
The Taliban are watching all this with interest, and by praising the present Indian role, they might be creating a greater accpetability for India in their home constituency, so as to enjoy greater leverage with Pakistan, and at the same time suggesting to India to not to go beyond a certain point, feel the observers.
(UNI)

NEW DELHI, June 18:
In a rebuff to Trinamool Congress chief Mamata Banerjee and BJP, former President A P J Abdul Kalam today announced that he would not contest the Presidential poll against UPA nominee Pranab Mukherjee.
Issuing a formal announcement, he said he had taken the decision after considering “the totality of this matter and the present political situation”.
Kalam, who was propped up by Trinamool as a nominee for the Presidential poll to be held on July 19, said, “though I have never aspired to serve another term or shown interest in contesting the elections”, Mamata Banerjee and other political parties “wanted me” to be the candidate.
“Many, many citizens have also expressed the same wish. It only reflects their love and affection for me and the aspiration of the people. I am really overwhelmed by this support,” his statement said.
“This being their wish, I respect it. I want to thank them for the trust they have in me,” he said, adding, “I have considered the totality of this matter and the present political situation, and decided not to contest the Presidential election 2012.”
After Mamata pushed his candidature, breaking ranks with UPA over the issue, BJP also tried hard to persuade him to contest as Opposition’s common candidate against Mukherjee.
BJP leader L K Advani called him thrice and sent his close aide Sudheendra Kulkarni twice to convince him. However, he made clear to Advani that his “conscience” is not permitting him to contest, sources said.
The former President has been insisting that he could consider entering the fray only if there was surety about his victory.
Several opposition leaders talked to Kalam over phone yesterday to know about his plans.
BJP was more in favour of fielding Kalam than former Lok Sabha Speaker P A Sangma, who is AIADMK Chief J Jayalalithaa and BJD head Naveen Patnaik’s choice.
Even JD(U), which wants a consensus for Mukherjee, may support Kalam as he shares a good equation with Bihar Chief Minister Nitish Kumar. (PTI)

MUMBAI, June 18:
As the strike by a section of the Air India pilots entered the 45th day, Aviation Minister Ajit Singh today reiterated his readiness to take back the sacked pilots provided they called off their agitation unconditionally and returned to work.
“We are still open to talks, but the pilots are not ready for that. They can be taken back on a case-to-case basis if they called off the strike and came to the negotiation table”, the Minister said.
On hiring new pilots, he said it is up to the Air India management to take a call on as to how my commanders they need.
On the letter written by the AI executive pilots to the minister stating that they were stressed out due to the strike by the IPG pilots, Singh said, he did not receive any such letter.
“What I got was an unsigned letter from some pilots”, he said.
On May 7, the 400-odd erstwhile Air India pilots under the banner of the Indian Pilots Guild (IPG) went on a strike protesting the AI management’s decision to allow the erstwhile Indian Airlines pilots to get trained on the Boeing Dreamliners, whose delivery will start from this month-end.
After the strike was declared illegal by the Delhi High Court, the management sacked 101 of them and also de-recognised their union.
As the Minister stuck to his gun that the pilots must call off their strike unconditionally if they wanted him to look into their issues, the cornered pilots abandoned their previous conditions but are now demanding taking them back and recognising their union. (PTI)

NEW DELHI, June 18:
Newbie actress Neha Sharma says she had no qualms taking up the small role of Shahid Kapoor’s girlfriend in upcoming film “Teri Meri Kahaani” as she is not looking for conventional roles in Bollywood.
Having made her acting debut as a leading lady opposite Emraan Hashmi in “Crook”, Neha will now be seen playing Meera, Shahid’s “dominating and bratty” girlfriend in the London setting of “Teri Meri Kahaani”.
“Though it’s a relatively smaller part, I did the film since I could relate to Meera. She is someone with grey shades and though she loves this guy (Shahid), she is pretty dominating and bratty.
“I didn’t have any qualms playing such a character because all girlfriends can’t really be docile. It is a normal relationship that we have depicted here; the kind that couples today share. The space which I have got into in ‘Teri Meri Kahaani’ is not really ‘filmy’,” Neha told.
The 24-year-old actress has a number of films in her kitty, including sex-comedy “Kya Super Kool Hain Hum” and as Vivek Oberoi’s solo female lead in “Jayantabhai Ki Luv Story”. Neha thinks playing a bit role in a film like “Teri Meri Kahaani” will not be limiting her prospects.
“Cliched as it may sound, but it is not just about the length of the character that you play, it was more about the kind of girl I was bringing on screen. It is a guest appearance but I really liked portraying Meera.
“I am sure there are others who think this is not the right move. However, conventional isn’t something for me in any case. Even ‘Crook’ was hardly a quintessential love story with which I started my career. It was a dramatic tale about racism. Even ‘Kya Super Kool Hain Hum’ is not conventional in any way,” said Neha.
“Teri Meri Kahaani”, directed by Kunal Kohli and starring Priyanka Chopra as the female lead, shows three different love stories set in 1910, 1960 and 2012.
“Kunal has indeed told an epic love story and I really like what Meera brings to the table. It was a wonderful experience working on the film and a real fun trip,” Neha said.
As for her next film “Kya Super Kool Hain Hum” where she would be seen in a much longer part, Neha is keeping her fingers crossed.
“I had already finished ‘Teri Meri Kahaani’ before starting ‘Kya Super Kool Hain Hum’. The promos are already a rage and the film is shaping up well too. It should be a happening year for sure.”
When it comes to taking up film projects, Neha says she signs on the dotted line only when she is sure that the film will be liked by the audience.
“First I have to look at the film from an audience point of view. One has to see the story from an actor’s point of view as well, but before that, I need to ensure hits. Hence the second thing I need to do is work on survival projects.
“For me, both are equally important because I have to do a film which is liked by the audience. It may not be a brilliant biopic or anything great but it should be successful,” she said. (PTI)

MUMBAI, June 18:
Veteran actor Dilip Kumar, who shared a close bond with Mehdi Hassan, says it was hard for him and his wife Saira Banu to come to terms with the news that the legendary ghazal singer is no more.
The 89-year-old actor said that the India-born maestro, who died in Karachi on June 13, could connect with people from every strata of society through his magical voice.
“It has taken me and Saira some time to come to terms with the fact that Mehdi Hassan Miyan is no more with us in this world.
“The voice which we loved to hear when he connected with us on the telephone sometimes in recent years when he had to give up traveling due to his critical lung condition has been stilled, but the echoes remain in our subconscious and will continue to do so,” Dilip Kumar wrote in his blog.
“The magic of his voice cannot be described in words… He drew everybody – the common man, the well read, the rich, equally to him when he rendered the ghazals of such profoundly intellectual and philosophical poets as Faiz Ahmed Faiz or Ghalib for instance,” he added.
The veteran actor recalled his last meeting with Hassan, when the latter was unwell, saying that they held hands and recited together.
“He visited us whenever he came to Mumbai and it was always a great occasion for the family… The last time Hasan Miyan visited us he was having high fever and he wanted to lie down. He held my hand and we recited together his favourites and mine. I can still recall his soft voice as if it was just yesterday that he was here.
“I have witnessed his success and the incredible adulation his admirers accorded him in other countries and in Pakistan. He remained ever so humble and unaffected by it all as all great men are,” he said. (PTI)

MELBOURNE, June 18:
An Indian taxi driver was attacked and racially abused and his car smashed, as a group of baseball bat wielding youth went about attacking and robbing cab drivers in Melbourne suburbs.
The gang ambushed and robbed five taxis in separate incidents in the western suburbs of Melbourne.
Attackers wearing balaclavas and armed with baseball bats pulled up in two stolen cars and attacked the drivers at Sunshine, Brooklyn and Laverton North areas last night.
Harpreet Singh was driving his taxi through Sunshine suburb when his car was rammed from behind and a second car pulled up abruptly in front of him.
He said four men with baseball bats got out of the car in front of him and began smashing the driver-side window.
“It was terrifying. They were smashing the car and hitting me with the bats also,” he said.
“I leaned to the left side (of the driver’s seat) to avoid the baseball bats hitting me (but) one guy punched me in the face. They didn’t say anything to me, they just smashed the car and straight away asked for the money,” he was quoted as saying by the Herald Sun.
Singh said he had already handed over USD 150 cash and his phone when one of the men punched him and the group sped off in the two cars.
He suffered a bloodied lip in the attack while another driver was hospitalised with a broken arm.
A report in ABC quoted the owner of the taxi as saying that the driver was taunted as he was beaten with baseball bats.
“They hit very badly you know, abusing him, you know, saying you’re Indian, go back to your country,” owner Sunny Singh told a radio channel here. (PTI)