Monday, August 12, 2013

Janata Party merges with BJP

Janata Party -BJP merger takes place 

The moment did finally arrive. The much awaited merger between Janata Party & Bhartiya Janata Party formally took place yesterday ( August 11, 2013) .

Leaders of BJP  met with Janata party President Dr Subramanian Swamy in the evening at 6.15  PM at the residence of BJP President Shri Raj Nath Singh.
Those present were  Sarva Shri Raj Nath Singh, Nitin Gadkari, Arun Jaitley and Subramanian Swamy. 

They deliberated for about an hour and around 7.30 PM ,press/ media photographers were called in for  short briefing .  BJP President said that he was happy to welcome Dr Swamy and his colleagues in BJP. Dr Swamy has been with Jan sangh  and  by his joining BJP, the party will be strengthened. He offered a bouquet of roses to Dr Swamy.

Dr Swamy   told the media that " I am happy .  It is the need of the hour to consolidate nationalist forces. I will work with my old friends to strengthen BJP". 

        जनता पार्टी का भाजपा  में विलय

अनेक दिनों से जपा  तथा भाजपा के कार्यकर्तागण, मीडियाकर्मी जिस समाचार की प्रतीक्षा कर रहे थे , कल शाम ( रविवार 11 अगस्त  2013 ) को वह क्षण आ पहुंचा, जब जनता पार्टी का भारतीय जनता पार्टी में विलय हो गया.

जनता पार्टी अध्यक्ष डा. सुब्रमण्यम स्वामी कल शाम लग्भग सवा छह बजे शाम  भाजपा अध्यक्ष श्री राज नाथ सिंह के आवास 38 अशोक रोड पहुंचे.

यहां एक छॉटी बैठक  हुई जिसमें जपा  व भाजपा अध्यक्षों के अतिरिक्त पूर्व भाजपा अध्यक्ष श्री नितिन गडकरी व  श्री अरुण जेटली उपस्थित थे.
लग्भग साढॆ सात बजे कमरे का दरवाजा खुला . इस बीच मीडिया के कुछ कर्मियों को बुलाया जा चुका था. टीवी चैनलों के प्रकाश तथा कैमरों की चकाचोन्ध के बीच राज नाथ सिंह जी ने एक गुलाब के फूलों का गुलदस्ता देकर डा. सुब्रमण्यम स्वामी का स्वागत करते हुए, विलय की औपचारिक घोषणा  करते हुए कहा “ डा. स्वामी के नेतृत्व वाली  जनता पार्टी का विलय भारतीय जनता पार्टी में हो गया है और हम  इसका स्वागत करते हैं. डा. स्वामी पहले जन संघ में हमारे साथ थे और अब फिर हम एक साथ हो गये हैं, जनता पार्टी के विलय  के साथ डा. स्वामी के भाजपा में आने से हम मजबूत होंगे”  

उपस्थित मीडिया कर्मियों के समक्ष डा. स्वामी ने कहा “मुझे खुशी है.  जनता पार्टी के भाजपा में विलय से  मुझे फिर अपने पुरानी सहयोगियों के साथ काम करने का मौका मिलेगा. राष्ट्र के हित में यही समय की आवश्यकता थी”  

Thursday, July 4, 2013

If BJP wants ,Janata Party is ready to merge with BJP

I have been getting phone calls from  Janata party workers from different places since this afternoon, to ask whether JP has merged with BJP ? 

The reason for this flood of calls was   Dr Swamy's answer to a question from a waiting TV correspondent after Dr Swamy met with Gujarat CM Mr Narendra Modi this morning in New Delhi.

Janata Party President said to the TV correspondents that ' I am an old Jansanghi.   We are a parivar. Narendra Modi is an old  friend for years, We have similar policies. We are willing to work together. If BJP wants, I am  ready to merge my party with BJP' 

May be the last sentence was too HOT a news for some correspondents. They flashed it immediately. India Today released it on its website,followed by India News Channel . Since India News TV channel was flashing it as 'Breaking news', it spread faster. 

But this should  not come as a surprise. Janata Party is already part of the NDA. On most of the political ,social, economic issues the two parties think alike.  Most of the Janata Party workers and office bearers have been active in it's earlier avatar Bhartiya Jana Sangh . Dr Swamy entered Rajya Sabha for the first time as a member of Jan Sangh only .

For past several years  Janata party President Dr Subramanian Swamy  has been a  very vocal politician highlighting issues which BJP  also swears by.  Dr Swamy has emerged as a champion of the Hindutva cause through his speeches and active work on the ground.

Entire Hindu Community ( barring a few SICKularists)  consider Dr Swamy  as a leader who  deserves the credit for  restoration of staus-quo on Ram Sethu . But for his active role in courts ,the mark of Hindu heritage would have been destroyed by UPA government.

We all know that it was Dr Swamy who persuaded Chinese authorities to open the doors of Holy shrine Kailash Man-Sarovar in 1980 . Dr Swamy  himself went  to Kailash Man Sarovar in the first group in 1980. 

Be it the issue of religious conversion, the Ram-Lala temple in Ayodhya, the issue of management of Hindu temples and holy shrines, Tirupathi Devasthanam issue,  the harassment and political vendetta against  Shankaracharya of Kanchi Kamakoti peetham, the evils of caste system, fight against religious reservations to minorities, brutal violence against Baba Ramdev & his followers, Dr Subramanian Swamy has proved his might  & resolve to fight.

BJP only stands to gain by the merger of Janata Party as a new force will ,then ,be available to BJP.

Dr Swamy  has always stood  for consolidation of nationalist forces  and has been fighting against anti national corrupt forces which now UPA leads. In this true spirit of consolidation of nationalist forces, Dr Swamy has made this offer to merge his party . If BJP agrees ,it will only boost the morale of the common worker of BJP also, who now counts Dr Swamy as a great patriot,statesman and a tall leader. 

Janata party  has all along supported the move to work closely with BJP and other like minded groups . In the national executive meeting of Janata party on 17th March in New Delhi ( later on endorsed fully by the national  council meeting of Janata Party , which was attended by representative of 17 state units), the resolution was adopted to work with BJP and if necessary merge with BJP to consolidate nationalist forces. 

Now since Dr Swamy has made it public through the media , it is for the BJP to respond. The nation is waiting . This unification of 'Janata-Sangh Parivar'  is in the national interest. 

- Arvind Chaturvedi 
National General Secretary,Janata Party

Wednesday, July 3, 2013

Govt. spends 1.75 Crores on IFTAR parties: Swamy writes to Minister

Many different departments of the Government of India have been spending public money on Iftar parties . Despite a clear directive from the ministry of finance not to spend public money on such religious parties , various departments continue to do that. According to a news item published in August 6, 2012 issue of Indian Express Online  ( Full news item reproduced here from Internet), the PMO, External Affairs Ministry ,LOk Sabha & Rajya Sabha Secretariat and the CPWD have spent Rs. 1.75 Crores over the past 10 years.    Janata Party President Dr Subramanian Swamy has asked the External Affairs minister Salman Khurshid to ask whether the minister would consider similar funds  for parties related to Hindu festivals also . 

The  text of the letter written by Dr Swamy and the original news item ,are reproduced here. 

 July 2, 2013.

Mr. Salman Khurshid,
Minister of External Affairs,
South Block,
New Delhi.

Dear Salman,

            With this letter I enclose a news item posted online in Indian Express of August 6, 2012 regarding the expenses out of public funds by the Ministry of External Affairs and other Departments  for meeting the expenses on Iftar parties.   I write to ask whether you would consider also providing funds for the celebration of Holi and Deepavali or will such expenses be confined only for Iftar parties.  If so, why so?
            Best Regards,
                                                                        Yours sincerely,
                                                                    Subramanian Swamy

MoF says can’t spend public money on iftar, but govt spent Rs 1.75 cr in 10 yrs
Shyamlal Yadav : New Delhi, Mon Aug 06 2012, 01:00 hrs
The Prime Minister's Office, External Affairs Ministry, Lok Sabha and Rajya Sabha Secretariats and Central Public Works Department (CPW-D) have spent Rs 1.75 crore on 18 iftar parties over the past 10 years even though the Ministry of Finance (MoF) maintains that public funds can't be used for such events.

In fact, responses of different departments to an RTI application filed by The Indian Express, seeking details of expenses on iftar parties — not a few of which were hosted in the past decade — reveal a lack of clarity about rules regarding such expenditure. While the MoF's Department of Expenditure said expenses on iftar parties are not allowed from the state exchequer — it also said the host departments didn't seek its permission for such parties — other departments maintained otherwise.

The Rajya Sabha Secretariat, which has spent Rs 22.75 lakh on five iftar parties since 2007-08, said: "Yes, the secretariat bears expenses incurred in this regard." When asked under which rule, it replied: "There is no rule. It is as per the convention." It, however, added that "expenditure is met on shared basis in the ratio of 2:1 between the Rajya Sabha Secretariat and the Ministry of External Affairs."
The Lok Sabha Secretariat said spending public money on iftar parties was allowed and that it has spent Rs 5.83 lakh on two such parties in 2010 and 2011. "Expenditure on iftar parties is met from the hospitality grant of the Lok Sabha Secretariat," it added.

The PMO's response to the RTI request, on the other hand, was interesting: its reply to almost all queries about iftar parties was that "information sought is not a part of records held by this office". The PMO has hosted six iftar parties since 2004 at a cost of Rs 1.03 crore, which, it said, was borne by the External Affairs Ministry (MEA) and the CPWD.

The MEA, on its part, said it has spent about Rs 41.48 lakh on 10 iftar parties, including the ones hosted by the PMO, since 2004. But to all other queries on the matter, it replied: "No specific information available".

- See more at:

Cancel Jet-Etihad deal says Swamy.

Janata Party President Dr Subramanian swamy has questioned bi-lateral deal on airline seats and the agreement between Jet Airways and Etihad airline. 

Dr Swamy has written two letters to PM on the issue and has brought out the fear that it is likely to be a security risk  to India. 
On Tuesday Dr Swamy was interviewed by CNBC-TV18 on this issue, which was carried out on the website  The same is being reproduced here .

Cancel Jet deal; will move court to stop Air Asia: Swamy
Speaking to CNBC-TV18, Janata Party president Subramanian Swamy said he is vehemently opposed the idea of Air Asia operating out of India, saying he will move court to stop it from taking off.

Even though the PMO has asserted that government is not divided over the air services agreement between India and Abu Dhabi, cracks are apparent. That the trouble for the Rs 2058-crore deal was far from over became clear when the PMO advised the ministry of civil aviation to consider a calibrated approach towards aviation deals.

Speaking to CNBC-TV18, Janata Party president Subramanian Swamy said the clearance for the Jet-Ethiad deal got delayed on his insistence. Swamy is the staunchest opponent of the deal. He is also vehemently opposed to the idea of Air Asia operating out of India , saying he will move court to stop it from taking off.
Below is the edited transcript of his interview with CNBC-TV18:

Q: Before I actually get to the objections that you have raised as far as the Jet-Etihad deal is concerned, let me ask you about why you are opposing the AirAsia deal? You have said this morning that you want the AirAsia deal scrapped. What is your objection to the AirAsia deal?

A: The policy was very clear that there are two aspects of it. One is that foreign investment is only permitted for an existing airline. There is no existing airline here in India. Tata is not an existing airline, therefore I have a good opinion about AirAsia.

Q: If you have a good opinion about them, if the Indian consumer stands to benefit, then why would you oppose this particular transaction. Why are you opposing this particular deal and even as far as the foreign direct investment (FDI) regulation is concerned, that matter was clarified by the Department of Industrial Policy and Promotion (DIPP)?

A: They have not clarified it. The civil aviation ministry has stated in the Foreign Investment Promotion Board (FIPB) that this is against the regulations that it has to be an existing airline. Ajit Singh said to one of the leading newspaper that under no circumstances it can be given to any airline which is not existing.

Q: If we are living by regulations, the FIPB has taken a decision to allow AirAsia to operate in this country. The FIPB, which has had consultations with each and every ministry that you just talked about, has said that AirAsia is okay with flying in this country?

A: The FIPB is one of the most scandalous bodies of India under Chidambaram’s leadership. It did so in the Aircel-Maxis also and it has done it in this and when I challenge it in court, I will bring it out. How did they disregard this fundamental regulation?

Q: Is your objection against the FIPB or is your objection against Chidambaram?

A: Both combined. There is no difference between the two.

Q: So are you saying that even as far as the AirAsia matter is concerned that you are going to move court?

A: Of course, I may move earlier than this one because I think Jet and Etihad is going to take a long time to finalise.

Q: So you are saying that you will actually move on AirAsia before you will move the Supreme Court against Jet-Etihad?

A: Yes, because Jet-Etihad is going to take a long time to consider. It’s not going to be cleared soon.

Q: If you are now saying that Jet-Etihad will take a long time to clear. Through the day and in your letter to the Prime Minister, you have been talking about the sense of urgency, the haste that the government has shown in trying to clear this deal. You yourself are now saying that the Jet-Etihad deal is far from being cleared?

A: Thanks to my letter it is going to be delayed. Otherwise it would have been cleared by now.

Q: So, you are taking credit for the fact that the government hasn’t acted on giving it clearance?

A: I am not taking credit. I wrote a letter and the action followed immediately after my letter. Actions speak louder than anything, I might say.

Q: Lets look at the facts and lets leave conjecture aside. The Indian government has not signed the bi-lateral agreement with the Abu Dhabi government so far. As far as the Foreign Investment Promotion Board (FIPB) clearance is concerned, the Jet-Etihad deal has not been cleared by the FIPB the matter was deferred again. As far as Securities and Exchange Board of India (Sebi's) clearance is concerned, the matter has not been cleared by Sebi. As far as the competition commission of India (CCI) is concerned, the matter has not been cleared by the CCI as yet. So, perhaps are you being a bit premature in pronouncing the fact that this deal ought to be scrapped?

A: Had I not written the letter on May 28, the FIPB would have cleared it on June 11.  That was the understanding that I have on the basis of what people told me.

May of them are members of the FIPB meeting. It’s because of my letter that this happened. So, its not premature, it was very well timed. It was at the right time.

When I saw that they were even disregarding the parliamentary committee, standing committee report I thought the time had come for me to write a letter. I wrote a letter to the Prime Minister to say that if the deal gets cleared, he would be culpable under Section 13 of the prevention of corruption Act.

Q: What is your biggest objection? Is your objection the bilateral agreement or is it the ownership issue?

A: If my biggest objection has to be summarised, it is that the Indian airlines industry is sought to be wrecked by four ministers who have some other motives other than national interest.

Q: You are saying that you will move the Supreme Court against AirAsia’s deal, but you will not move the Supreme Court against Jet-Etihad atleast not as of now?

A: Yes, till they take a decision I can't move. I will go to the Supreme Court as far as AirAsia is concerned.

Q: They have crossed the FIPB, but they are yet to get a licence to fly?

A: FIPB is an illegal decision. So, I have a cause of action. There is no decision where I can take cause of actions in the court. You must know the requirements of the court before I can go to court.

( Kind courtesy :, Jul 03, 2013, 01.06 PM IST

Tuesday, July 2, 2013

2013-07-03 World Peace Forum Series: South Asia

Dr Subramanian Swamy was in China recently to attend the  World Peace Forum Meeting ,   at Beijing. World leaders and security & peace experts from different countries  attended the meeting. Dr Swamy was the only one from India to discuss the security threats and the solutions.

Dr Swamy was interviwed by several journalists reporting  at the WPF. He was specially invited to be interviewed by the Programme  (Audio ) People in The Know. 

The interview was recorded in MP3 format and the same is presented here along with the introduction of the programme as obtained courtesy CriEnglish .com


( To Listen to Dr Swamy's Interview please cut & paste the above link  in your browser)

The world is facing a raft of security challenges, both traditional and new in kind. Asia, a high-flying continent with great political, historical, social and ethical diversity, is not immune from these challenges. The ongoing conflict in Syria, the resurgence of Islamic radical groups and rising tensions in territorial disputes among Asian nations has become a major source of instability and threat. Starting from Wednesday, the People in the know program will assess the security situation in Asia and China's role in bringing peace to the region. In the first edition of our series on Asian security, we take a look at south Asia with a special focus on India and Pakistan.
So how can China and India forge deeper mutual trust and solve their border dispute in a timely and peaceful manner? What efforts can China and Pakistan jointly make to tackle security challenges, especially those posed by extremism in the region?
Ni Hao, you're listening to   People In the Know, bringing you insights into headline news in China and around the World, I'm Zheng Chenguang in Beijing.
We speak to Dr. Subramanian Swamy, former Cabinet Minister of Commerce, Law and Justice, Government of India, now President of India's Janata Party. We caught up with him at the World Peace Forum, recently held in Beijing and Riaz Hussain Khokahar, Pakistan's former Foreign Secretary.

Monday, July 1, 2013

Bangladeshis are adding to numbers

Rise in Muslim population due to migration from Bangladesh, says Subramanian Swamy

‘B’desh migrants adding to Muslim population’
‘B’desh migrants adding to Muslim population’
Mumbai: Janata Party president Subramanian Swamy said the increase in population among Muslims in India is due to the burgeoning illegal migration from neighbouring nation Bangladesh.
"Growing population among Muslims is due to the migration from Bangladesh. The neighbouring country needs to be firmly told to take back their people," Swamy said at a book release function ‘Muslim Jansankhya: Ek Chinta' published in Marathi and Hindi.
On Article 370 of the constitution for Jammu and Kashmir, Swamy said it can be repealed through a presidential notification.  “There is no need for a parliamentary vote,” he added.
- See more at:

Swamy supports Telangana & Smaller States

Dr. Swamy Rubbishes claims that Telangana would not be economically viable
New Delhi : Janata Party President Subramanian Swamy on Monday said that any Telangana package should be rejected outright, as nothing short of separate Telangana would do. There should be no compromise on this basic demand, he said.
A publication ‘A Rebuttal to Visalandhra Goebbels Propaganda’ brought out by Telangana Development Forum, US, to reject the claims of Vishalandhra Mahasabha against the demand for separate Telangana State.  The publication was released by Dr Subramanian Swamy. The author Konatham Dilip ,Delhi TJAC Convener D Ramakrishna Reddy & Sriram Vedire were present on the occasion.
Dr Subramanian Swamy praised the effort of the Telangana Development Forum to counter the claims of Vishalandhra Mahasabha. “In a democracy, it is important to challenge false propaganda. Even during the Emergency, the false propaganda was challenged through underground literature,” he said.
The NDA, he said, is all for Telangana and if the NDA comes to power, he will do everything in his power to ensure the creation of Telangana. Dr Swamy said, “You are closest to achieving Telangana. In 2014, we should have the celebrations meeting in Hyderabad, after the creation of Telangana.”
Telangana activists should never despair. One does not know when Telangana may happen,” he said. Citing from history, he said when the Quit India Movement collapsed in 1944, people gave up hope of achieving Independence. But it happened in 1947. Again, during the Emergency, when he managed to escape, there was not even a whimper of protest. “People used to ask me, how will things go on like this? I had no answer. Indira Gandhi made a foolish decision and called elections and she lost all over the country and she was defeated in her own constituency. When it all seems impossible, things suddenly happen,” Dr Swamy said.
Two States would be a credit to Telugus
Citing solid reasons for creation of Telangana, he said: “Andhra Pradesh is too large a State; there is no dispute over language and it would be a credit if there are two Telugu-speaking States. There has been a consistent demand for separate State.” He rubbished the claim that Telangana is not viable economically. If it is true then trade between States is always an option open to it
(Based on report by Venkat Parsa in The Hans India )
In the Photo : Janata Party president Dr Subramanian Swamy (fourth from left) and Justice Rajinder Sachar (third from left) releasing the CD format of publication ‘A Rebuttal to Visalandhra Goebbels Propaganda’ in New Delhi on Monday. Academician Gautam Pingle (second  from right) and others also seen

Dr Swamy writes another letter to PM on Aircel -Maxis deal

Janata Party President Dr Subramanian Swamy has raised the Aircel-Maxis deal once again and asked Mr Man Mohan Singh  to call for immediate review of the deal .

This morning ,in a letter to PM Dr Swamy  reminded PM of his earlier letter on the topic       ( please see this blog for full text of earlier letter) and questioned the role of Finance Minister Mr P.Chidambaram . 

Full text of the letter is here :  

July 1, 2013.

Dr. Manmohan Singh,
Prime Minister of India,
South Block,
New Delhi.

Dear Prime Minister:

            Please refer to my earlier letter to you dated April 18, 2013 regarding the Aircel-Maxis deal and the CBI’s Supreme Court-monitered-investigation into the same.  In my Interlocutory Application No. 36 in the matter, the Supreme Court had directed the CBI to investigate the issues I had raised therein, which included the fraudulent and bogus clearance of the deal by the FIPB allegedly claimed as on March 7, 2006 {when Mr. P. Chidambaram was Finance Minister}.  Hence his role in the matter would automatically come under the scanner of the CBI.
            In this letter I bring to your notice information I have recently received.  A Secret Note No. 51/1/2007-JIC(CS) had been prepared by the Joint Intelligence Committee of your Government based on inputs from all the main central Intelligence agencies submitted.  In  the said Secret Note  it is stated Saudi Arabia’s Saudi Telecom had as far back as 2007 acquired 25% of the Maxis equity by paying $3 billion then.  Recent information I have received from Malaysia reveal that Saudi Telecom will purchase additional equity to raise its share to 35%.  There is also news that France was expecting its telecom company to purchase an additional 20%.  In other words, Maxis would cease to be a Malaysian company.
            Given Saudi Arabia’s Wahabi propensity to finance Islamic fundamentalist forces in India and Bangla Desh, JIC had rightly wondered as far back as 2007 whether it is in India’s national security interests that India should provide access to such a vital area as telecom sector, especially when Saudi Telecom will through Maxis has licences for sensitive circles such in  Northeast India, hit by Islamic infiltration from Bangla Desh.
            What is all the more shocking is that Mr. Chidambaram had failed to call for security clearance for the Aircel Maxis or inform the FIPB of the Saudi Telecom angle but instead fraudulently gave a bogus contrived FIPB clearance to the deal.
            As Prime Minister therefore, you must call for a review of the Aircel Maxis deal immediately and instruct the CBI to investigate the matter.  Otherwise, I shall have to approach the Supreme Court by way of another Interlocutory Application.

                                                                        Yours sincerely,

Saturday, June 29, 2013

China should accept McMahon line as border: Subramanian Swamy

Janata Party President Subramanian Swamy has asked China to accept the McMahon Line as the border with India just as it did in the case of Myanmar to resolve the vexed dispute. China should accept McMahon Line since it had accepted the same line drawn at the same time in 1912 with Myanmar, Swamy said while speaking on "China's relations with its neighbours" at the 2013 World Peace Forum organised by China's Tsinghua University in association with Chinese Foreign Ministry. "Such an acceptance will vastly improve India-China relations," Swamy argued in a lengthy paper presented at the meeting attended by strategic think-tanks from China and a number of other countries.
"On the contrary for more than two-and-a-half thousand years, India and China, two large neighbours and economic superpowers by the then prevailing standards, have had good and peaceful relations based on mutual respect and cultural exchanges, and in fact never had a single military clash till 1962," he said. "Chinese grievance is that the border delineated by British imperialists and colonialists and called the Sir Henry McMahon Line was unfair to China, taking advantage of China's then weak position," he said.
"Of course this is a contestable view," Swamy said. "The key question is what prompts today's China in regard to Japan and India, to make a grievance of a long past historical injustice and unequal treaties enforced by imperialists on a weak China, versus what makes China of today to ignore such injustices in case of others such as in the now settled China-Myanmar border dispute accepting the same McMahon Line" he said.

( Courtesey Indian Express , Based on PTI report PTI : Beijing, Sat Jun 29 2013, 17:56 hrs)

Swamy calls for India-China cooperation on terrorism

Janata Party President Subramanian Swamy on a visit to Beijing has made a pitch for India and China to work more closely on counterterrorism, even as he voiced his support for the Chinese government’s efforts in tackling terrorism in Xinjiang amid renewed criticism aimed at its policies after fresh violence this week.
Dr. Swamy, who was here at the invitation of the World Peace Forum, a diplomacy conference co-hosted by Beijing’s Tsinghua University and the Chinese Foreign Ministry, said India and China should come together, especially in Afghanistan, considering their common concerns on terror. His comments came during a week in which the issue has been in the spotlight in China following violence in Xinjiang that left at least 35 people killed. While official media described the incident in Turpan as an act of terrorism, many minority Uighur rights groups have blamed ethnic unrest for the violence. U.S. State Department spokesperson Patrick Ventrell said last week the U.S. was “deeply concerned by the ongoing reports of discrimination” in Xinjiang. Dr. Swamy on Saturday hit out at the U.S., saying its comments were “damaging to the fight against terrorism”, adding that China needed “to review its relations with Pakistan since some of these Xinjiang terrorists are also of Pakistani origin.”
At the Tsinghua forum, he also made a pitch for India and China to move beyond the boundary dispute. “India and China should be strategic partners, not adversaries. The gain in Asian stability and international security would be enormous,” he said. He also called on China to accept the McMahon Line - the effective boundary in the eastern section of the border with India, which China disputes – to end the row, as it had done with Myanmar. “Such an acceptance will vastly improve India China relations,” he said.
( Report by  ANANTH KRISHNAN in The Hindu,  June 29 )

Thursday, June 20, 2013

Air Asia deal is violation of rules says Subramanian Swamy

Janata Party chief Dr Subramanian Swamy has questioned yet another airline deal . After raising doubts about Jet-Etihad deal ( refer to earlier pages in this blog ( , this time  the  questions relate to Air Asia -Tata deal. 
Dr Swamy  earlier wrote to Prime Minister Man Mohan singh on Etihad deal and now he has written another letter to PM on Air Asia.  We are reproducing the  text of the letter from Dr Swamy to PM.

Dr. Man Mohan Singh                                           June 19, 2013
Prime Minister
New Delhi                                                      
Dear Prime Minister:                                                                                  
1.   I write this letter on the subject of another developing mega fraud in the nation’s Civil Aviation affairs, which fraud also impacts on India’s national security.
2.   The fraud is in the FIPB clearance given under the authority of the Minister of Finance Mr. P. Chidambaram and is prosecutable under provisions of law relating to cheating, criminal conspiracy, corruption and which fraud will cause collapse of many of our domestic airlines, creating a systemic risk for financial institutions, a large loss to public exchequer, and blow a hole in the country's transportation infrastructure.
3.   Air Asia Joint Venture was cleared by the FIPB and approved by Finance Ministry in violation of all norms, rules, regulations, policy governing the Civil Aviation Sector, Foreign Investment and Security imperatives.
Brief Summation of Events:
1.   Planning Commission through its Order NO.18/1/2011 Tpt.   dated  6.4.2011 had recommended constitution of a Working Group on Civil Aviation for the formulation of 12th Five Year Plan review the physical and financial performance of various constituents units of Aviation sector with special focus on Ministry of Civil Aviation and its  constituents indicating their achievements and failures.

2.   In terms of the aforesaid Order, The Report of Working Group  on Civil Aviation for  formulation  of twelfth five year plan   (2012-2017), recognized that  most Indian carriers are reeling under losses.

3.   During the  three year period  between April 1, 2007  and March 31, 2010, Indian  carriers had incurred an accumulated  operational loss in excess of  Rs. 26,000 crores.

4.   The said Report further acknowledges the impediments  in the  efficient  working  of the  aviation sector including the  the FDI policy governing the aviation sector. It notes that:
"..the existing FDI Policy governing the CIvil AviatIon Sector does not permIt foreign airlines investment  [emphasis added] thereby denying access to potential sources of capital and expertise. This requires a re-look to pave the way Indian carriers to access the much needed capital at low cost  and also the expertise to  access international markets quickly."
a.   That on 07.02.2012 the 8th  meeting of Group of Ministers on Civil Aviation was chaired by the  Finance Minister,  wherein the  issue of permitting FDI up to  49% by the  foreign  airlines, in Indian carriers was taken up and it was decided during the same, that an appropriate proposal be tendered for the consideration of the CCEA.

b.   The Appropriate CCEA Note was prepared by MoCA (Ministry of Civil Aviation)and sent to various Ministries (of Corporate Affairs, Home Affairs  and  External Affairs), Departments  (Commerce and Economic Affairs), Planning Commission and DIPP        for  their  consideration  and comments. The said Note inter-alia:      

i.      introduces the CCEA Note as a proposal "to invest in the capital of Indian companies operating scheduled and non­ scheduled air transport services";
ii.     rationalises the proposal on:
(a) the 8th  meeting of Group of Ministers on Civil Aviation, chaired by the Finance Minister,  on  07.02.2012 on the issue of permitting  FDI up to 49% by foreign airlines, in Indian carriers and hence the proposal;
(b) private  airlines  are in  dire  need of funds for the operations  and service up-gradation to compete with  other global carriers;
(c) denial  of  access to  foreign  capital could result in the  collapse of many of  our  domestic  airlines,  creating  a systemic risk for financial institution, and  a  vital   gap  in  the   country's infrastructure
(d) the budget speech 2012-2013 of the then Finance Minister which envisages such  equity   participation by  foreign   airlines  in   the   airlines already operating in India;
c.   That he comments/suggestions from the authorities  above supported the CCEA Note to permit  foreign airlines, to Invest  in  the  capital  of  Indian  companies  operating scheduled and  non-scheduled air transport  services upto  the  limit  of  49% of  their  paid  up  share  capital. However,  no  suggestion was proposed,  to  include a “greenfield airline”  project.

d.   That on 20.09.2012, Department  of Industrial Policy &  Promotion,  Ministry of Commerce & Industry, issued the reviewed policy on Foreign Direct Investment in the Civil Aviation sector. In terms of the reviewed policy inter-alia permitted:     
"foreign airlines also to invest, in the capital of   Indin companies, operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid up capital.”
e.   That it was clear and express policy to allow FDI ONLY in existing carriers was reiterated by  Civil Aviation Minister, Ajlt  Singh's observation  as  published in Business Standard, inter alia stating:
"We are not qiving licences for greenfield airlines. As of now, FDI (foreign direct investment) In aviation can come only through existing airlines."
f.    That on 19.02.2013 A Memorandum of Agreement was signed between Air Asia Berhad, Air Asia Investment, Tata Sons limited  and Telestra Private Tradeplace Limited for forming the Joint Venture Air Asia. Similarly  Articles  of  Association  of  AirAsia  are  also executed by the Parties and Application for FIPB approval was filed by Air Asia.

g.   That on 01.03.2013   Directorate  General  of  Civil Aviation   an  instrument   of  MoCA,  issued  the   "Guidelines For Foreign Direct Investment in  the  Civil Aviation Sector". The said Guidelines in its object and reasons inter-alia state:
"The Existing policy however prohibits FDI by foreign airlines directly or indirectly in the equity of scheduled and non scheduled passenger airlines. The Government of India has reviewed the position in this regard and decided to permit foreign airlines also to invest in the capital of Indian companies, operating scheduled and non-scheduled air transport services, up to the limit of 49% of their pad up capitol vide the Press Note  issued  by the    Department     of   Industrial    Policy   &   Promotion, Ministry of Commerce and Industry, New Delhi...... "
5.   It  is abundantly clear that  the  Guidelines were issued only  for  the   existing  airlines  since the   CCEA Note,  Ministry of Civil Aviation decision, and the DIPP PressNote NO.6 of 2012 were all based on the  reason and for purpose of allowing  FDI in the  existing airlines. 

6.   That on  04.04.2013,  the meeting  of FIPS was scheduled to decide on the Application  filed on behalf of Air Asia. The FIPB issued the impugned approval granting clearance, despite:
a)  the Ministry of  Civil Aviation's  ("MoCA")  explicit  and clear  suggestion that  the impugned approval is against the letter  and spirit of the Cabinet Note which   delineated   that   the   amendment  was aimed at infusing capital into the existing cash- starved aviation companies;
b)  MoCA's objection during the impugned approval stage  inter-aliastating that the DIPP's Press Note 6 of 2012 needs clarification to the effect that the same applies to JV's to be incorporated also;   .
7. The basis of Cabinet discussion  for allowing FDI was reflected in the underlying reasons for need of such policy change in the DIPP Press Note clearly,  which  read that  FDI in foreign  airline was permitted  by the Government only in the carriers operating an airline as opposed to one desiring to set up a new airline.

8. It  is reliably learnt by me that in the entire process of CCEA Note and decision, no consultation took place with  the Ministry  of Defence. It is disturbing to note the same as many airports in India, including Pune, Goa, Chandigarh, Amritsar, Agra and Bagdogra to name a few are Defence Airports, which are being used as Civil Aviation airports.  It is also noteworthy to point out that, an application in the late nineties on behalf of Singapore airlines to set up a domestic airlines (with an indian partner) was rejected due to severe concerns raised by the Ministry of Defence.
9. That Further Press Note No 6 (2012 series) dated September 20, 2012 inter alia  mandates that scheduled operator's permit can be granted only to a company"  the substantial ownership and effective control of which is vested in Indian Nationals" . Similarly, Section 1(ii) (c) of Schedule XI of Aircraft  Rules, 1934  mandates, that  (a) "substantial  ownership"  and (b) "effective control" of such entity (to whom the scheduled operator's  permit be granted) be vested in Indian nationals. However, neither (a) "substantial ownership" nor (b) "effective control" are defined and explained either under the governing act i.e. the Aircraft Act 1934 and the Rules there under, the Press Note No.6  of 2012, or any other  legislation/policy governing the aviation sector leading to a legislative vacuum.
10. There is a potent threat of foreign airlines structuring their business with the intent of exercising "effective control" of the airline due to their nature of investments being strategic rather than financial. This will expose domestic skies into the hands of foreign airline which is clearly neither the purpose nor the intent  for opening the  FDI to foreign airlines. Such potential  threat  will  be even more  pronounced in  cases where  a foreign  airline  partners  with  non-aviation  business entities in India. In mature aviation sector such as United States and European Union, the statute  and/or policies of the government  explicitly define the terms (a) "substantial ownership" and (b) "effective control". Further, such definitions and their application/operation  are specific to the aviation industry and is distinct from the general statute/policy  relating to ownership and control  in other  businesses in order  to  protect  the  domestic  skies from  a foreign airline's (through its subsidiary or directly) possible sabotage and control, something that Is duly recognized under the principal instrument of international  public air law - The Chicago Convention, 1944.
11.That further it is noteworthy  to point out that  media reports confirm that JV partners of AirAsia (India) Pvt. l.e. Tata Sons Ltd and Telstra Tradeplace Pvt. Ltd. Are only strategic investors and are neither a part of existing operating scheduled airlines in India nor Involved in any manner in the civil aviation sector. Therefore it becomes imperative that While evaluating, the Government must apply the doctrine of 'piercing the corporate veil', as has been used in foreign jurisdictions to identify and establish whether such "substantial ownership" and "effective control" is followed  in letter  and spirit.  Such requirement  and scrutiny by MOCA/DGCAmust not be perfunctory  but be objective. It is essential that such compliance is not only on paper but infact in the hands of Indian nationals.
12. That Media reports confirm that application of Air Asia (a new airline venture in India) has been approved by the  Foreign Investment  Promotion  Board (FIPB). And that Finance Ministry has given approval, Such decision under  an existing legislative vacuum, is not only contrary to existing declared policy, but also in direct contravention to the rationale and decision relating to FDI permission to foreign airline in civil  aviation  sector  by  CCEA taken  in  September  2012  as  well  as contrary  to  the recommendations made by Committees constituted to identify specific issues plaguing the civil aviation sector in India.
13.  Hence the FIPB decision clearing Air Asia is not legally valid with  either the  requirement/need  of the aviation sector, the recommendations made by various empowered committees, and in fact, directly contravenes the existing policy as per decision of the CCEA, and is a gross and blatant fraud which involves provisions in law of cheating, criminal conspiracy, violation of various provisions of Prevention of Corruption Act and not in the public interest since it is clearly an attempt to  cause a collapse of many of our domestic airlines, creating a systemic risk for financial institutions, loss to public exchequer and a vital gap in the country's Infrastructure, Therefore I strongly recommend that you hold a comprehensive review and following which I am certain that you would revoke this impugned fraudulent Air Asia deal.         
14. If you decide to direct a review of this aforesaid permission to allow this Air Asia deal, and its revocation, I shall happy to assist your government in the entire matter as the matter is of national importance and public interest involving not only economic considerations but also vital aspects of national security. Otherwise, if your Government decides for extraneous reasons to disregard the public interest, and continue with this deal, I shall have to approach the courts by way of a Public Interest Litigation.      
                                 Warm regards, 
                                                                         Yours Sincerely

                                                                         Subramanian Swamy