A new series of CPI data with a base year of 2024 is scheduled to be released on February 12, 2026. File
| Photo Credit: Reuters

Kolkata:

Controversies have surfaced over the decision of the CPI(M) to invite a popular Bangladeshi singer to perform at a cultural event of the party organised by Jyoti Basu Centre for Social Studies and Research at New Town in the northern outskirts of the state capital this month.

The crucial central committee meeting of CPI(M) is scheduled at New Town from January 17 to January 19 this year, which will be attended by CPI(M)’s national politburo coordinator Prakash Karat.

On that occasion, the said institute named after nonagenarian Indian Marxist and former West Bengal Chief Minister Late Jyoti Basu, is slated to organise a culture event where the party has invited popular Bangladeshi singer and Rabindra Sangeet exponent Rezwana Choudhury Bannya to perform.

BJP’s former national vice-president and former party Lok Sabha member Dilip Ghosh slammed CPI(M) saying that in a situation when anti-India slogans are being raised in Bangladesh constantly, the decision to invite an artist from that country is simply unacceptable.

“My question is whether the Indian Communists did not find any able artists in the country. Such an initiative was not required,” Ghosh said.

However, the CPI(M) leader leadership has its own logic behind inviting Bannya, who was conferred the Padma Shri Award in April last year. “There is an attempt to create a religious divide in the country over the ongoing political crisis in Bangladesh, whose relations with India have been cordial traditionally. Our intention is to maintain that spirit of unity through cultural exchange” said a central committee member of CPI(M).

Last month similar controversies surfaced as a group of citizens raised objections to the scheduled participation of Bannya at an annual cultural event organised by a municipality in West Bengal.

The Madhyamgram Municipality in North 24 Parganas district last month listed Bannya as one of the performing singers at its annual event of “Paribesh Mela” where the main attraction is the cultural event on the occasion. Popular singers and band groups from both India and Bangladesh participate in the event every year.

However, at that point in time a civil society group in the Madhyamgram Municipality area under the name of “Madhyamgram Nagarikbrinda” raised objections to the participation of Bannya in the event.

The group then even issued an appeal through social media requesting the authorities of Madhyamgram Municipality not to include the popular Bangladeshi singer in this year’s cultural event.

“This is an appeal to Madhyamgram Municipality as Indian citizens regarding the scheduled musical participation of Rezwana Choudhury Bannya in the event on the occasion of Paribesh Mela on December 28. Rather we request not only allow the participation by any Bangladeshi in the said event. The country comes first. Please give it a thought,” the appeal read.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

A week is a long time in politics, and the last few days in Kerala have proven that yet again. August 31 saw the dramatic removal of Kannur strongman E.P. Jayarajan from his exalted position as the convener of the Left Front. Although many saw that coming in light of the Communist Party of India-Marxist’s (CPI-M) performance in the Lok Sabha election – Jayarajan faced heavy criticism for it – the timing took everyone by surprise.

Sources within the party revealed that it couldn’t wait any longer as the CPI(M) was beginning its triennial cycle of branch, local, area and district committee meetings in the run-up to the state conference in February, to be followed by the ‘Party Congress’ to follow in April. The party doesn’t generally take disciplinary action against its leaders once the calendar is set in motion.

The Many Allegations Against Jayarajan

Seeing red, Jayarajan quickly proceeded to vacate the flat provided to state secretariat members of CPI(M) and left for his native Kannur the next day, without waiting to partake in the party state committee meeting scheduled for September 1. Mathrubhumi reported that the decision to oust Jayarajan was taken in the meeting of four Kerala Politburo members of the CPI(M) – Pinarayi Vijayan, M.A. Baby, A. Vijayaraghavan and M.V. Govindan – where the chief minister was overruled over by the others through a majority of 3-1.

Jayarajan had been cutting a sorry figure ever since he began acting up after the elevation in 2022 of Govindan, his junior, as the state secretary of the CPI(M). The sulking had gone to the extent of not fulfilling his duties as the Left convener. To make things worse, he was accused of amassing wealth by fellow Kannur strongman P. Jayarajan, pointing out that his wife and son owned shares of the Vaidekam resort in Kannur. He was further pushed on the back foot when it came to light that the Rajeev Chandrasekhar-backed ‘Niramaya’ had taken over the operations of the resort following the revelation.

The BJP Link

Things came to a head when prominent state Bharatiya Janata Party (BJP) leader Sobha Surendran accused him of parlaying with the Kerala BJP in-charge Prakash Javadekar. Jayarajan confirmed it on April 26, the day Kerala voted for the Lok Sabha election. It also did not help his case that he had talked up the chances of the BJP candidates in the Lok Sabha polls when the CPI(M) had made its non-compromising attitude with the party the prime poll focus. All this, coupled with Left ally Communist Party of India (CPI)’s discomfort with Jayarajan, had made his position untenable-although he was expected to keep his chair till at least the party’s state conference in February.

It may be recalled here that E.P. Jayarajan’s biggest calling card was his unflinching loyalty to Pinarayi Vijayan over the years. In a 2014 interview with Malayala Manorama, Jayarajan had recalled how he met Vijayan as a student leader in 1963 and how the duo had remained close since then. In fact, it was due to Vijayan’s backing that Jayarajan escaped party censure on many past occasions.

A Malabar Rebellion

The exit of Jayarajan had barely registered when P.V. Anwar, a Left-backed independent legislator from Nilambur, launched another volley. He publicly leaked damaging phone transcripts between himself and the (former) Pathanamthitta Superintendent of Police (SP) Sujith Kumar, levelling a string of sensational allegations against the Chief Minister’s Office and the home department, which is held by Vijayan himself.

Anwar suggested that Kerala’s Additional Director-General of Police (ADGP)-in charge of law and order, M.R. Ajith Kumar, known to be Vijayan’s close aide, was operating a crime syndicate. It supposedly involved gold smuggling and phone-tapping of state ministers, among other violations. Anwar accused Kumar of being involved in a murder case too. He further targeted Vijayan’s powerful political secretary P. Sasi – who is an old Kannur hand with a controversial past and known to steer the state home department from behind the scenes – for the mess.

Anwar’s Tactful Ways

Vijayan was left in a bind. At an official function in Kottayam – attended by Ajith Kumar – he hinted that he was willing to act against the officer, but, by that very evening, he did a volte-face. By then it must have dawned on him that if Ajith Kumar was sacked, it would only lead to the demand for the ouster of Sasi, and that would ultimately put the blame on himself. Ultimately, Vijayan did institute an inquiry against Ajith Kumar, but it seemed largely farcical given that the probe officers were Kumar’s subordinates. 

Anwar treaded tactfully. He met Vijayan soon after and personally handed over a list of his allegations, careful not to launch a frontal assault at the CM. But the fact that he found public support from another Left-backed independent legislator from Malappuram, K.T. Jaleel, a minister during Vijayan’s first term, only piqued curiosity. Both Jaleel and Anwar have been mired in controversies in the past for corruption and nepotism. In fact, Jaleel was disqualified as minister following a Lokayukta verdict against him; Anwar has had multiple run-ins with the law over allegations of encroaching and squatting on public property, and the illegal construction of a check dam.

What is also interesting is that on social media, the CPI(M) rank-and-file has been backing Anwar and his allegations to the hilt, putting the party in a quandary. It is a fact that the home department has had a lot of flak in the past couple of years ever since P. Sasi took over. The lack of democratic functioning of the CPI(M) meant that the lower rungs in the department could hardly raise their voices against anything.

For Brutus Is An Honourable Man

It has now been a week since Anwar went to the press with his allegations. But there has been no let-up. If anything, he has only raised the stakes by playing up his claims, capturing Kerala’s airtime like none other in recent times. For some, Anwar is a hero. For others, he is a useful instrument. The only commonality is that for most people, his past indiscretions seem easily forgettable now. 

Anwar has also been careful not to take on the CM directly. In fact, he keeps reiterating his faith that Vijayan will turn things around, just like Marc Antony kept referring to Brutus as an honourable man. But the real intent isn’t lost on anyone. When SP Sujith Kumar was finally suspended in a couple of days, Anwar celebrated it on social media, saying that this was the “first wicket to fall”. So, is M.R. Ajith Kumar the ‘second wicket’, to be followed by Sasi – and then Vijayan? 

Can Vijayan Survive This Coup?

As of now, nobody seems to know what Anwar’s exact plan of action is. Some, like former CPI(M) Malappuram district secretary P.P Vasudevan, have called him a ‘trojan horse’. It is also more than probable that a faction within the CPI(M) is backing Anwar. Anwar is purportedly close to P. Jayarajan, but he is equally close to the CPI(M) Kozhikode district secretary, P. Mohanan. It is also being assumed that he has M.V. Govindan’s backing.

Anwar’s charges have already caused enough damage to Vijayan. The CPI(M) branch meetings underway have been witnessing heavy criticism of P. Sasi and the chief minister himself, virtually unheard of in the recent past. Is Vijayan’s grip on the party apparatus loosening? Or is this a palace coup in motion? Whatever it is, only time will tell whether Vijayan can survive the ides of March come April, when the CPI(M) Party Congress will be held. 

(Anand Kochukudy is a senior journalist and columnist)

Disclaimer: These are the personal opinions of the author

New Delhi:

The Communist Party of India (CPI) received a notice from the Income Tax Department sometime back regarding some discrepancies due to the use of old PAN cards by some state units of the Communist Party of India, said General Secretary of CPI, D Raja.

“We have received the income tax notice for the use of the old PAN card,” CPI leader D Raja said to ANI.

On being asked if the party received any notice from IT in regard to a particular amount, Mr Raja, clarified, saying, “They did not receive any notice from IT in regard to money.”

The development comes as the Income Tax Department issued a demand notice of about Rs 1700 crore to Congress, sources said. They said the fresh demand notice is for assessment years 2017-18 to 2020-21 and includes penalties and interest.

The Delhi High Court had earlier this week dismissed the party’s plea, challenging the Income Tax Department’s order opening reassessment proceedings against it for 2017-18, 2018-19, 2019-20, and 2020-21.

Congress will stage a nationwide protest on Saturday against notices from the income-tax department, asking it to pay Rs 1,823 crore.

Congress general secretary KC Venugopal has instructed all state units to stage demonstrations at PCC and district Congress Committee headquarters tomorrow.

“Eight years of Income Tax returns of the INC have been reopened on baseless, manufactured grounds to levy patently illegal Income Tax demand orders totalling thousands of crores of rupees. This is nothing but a blatant and naked attack on the very principals of democracy,” Mr Venugopal said in a letter addressed to party workers on Friday.

“Now in a patently illegal and undemocratic action, the Income Tax Department – has launched its next premeditated, diabolical campaign against the INC. Eight years of Income Tax returns of the INC have been reopened on baseless, manufactured grounds to levy patently illegal Income Tax Demand orders totalling thousands of crores of rupees. This is nothing but a blatant and naked attack on the very principals of democracy,” he stated in a letter.

“In light of this egregious attack on democracy and the imposition of tax terrorism on our party amidst the crucial Lok Sabha elections, All Pradesh Congress Committees (PCCs) are requested to hold massive public demonstrations at the State and District headquarters in their respective states tomorrow and the following day, involving senior leaders and party functionaries. Massive protest demonstrations shall be held in all constituencies, led by our party candidates. Protest demonstrations, including Mashal Juloos, shall be conducted in all districts by the District Congress Committees,” he added.

Earlier, accusing the Income Tax Department of double-standards, Congress alleged that while it has been penalised for “a violation of Rs 14 lakh,” the income tax authorities were completely silent on “Rs 42 crore violation” by the BJP and that the violations by the ruling party at the Centre entailed a penalty of Rs 4,600 crore.

Addressing a press conference, Congress leaders Jairam Ramesh and Ajay Maken said there was an attempt to stifle the party financially during the Lok Sabha polls.

Mr Maken said the Election Commission should ensure a level-playing field.

“We have received notices from the time of Sitaram Kesari, from 1993-94… We have been demanded to pay Rs 53 crores from the time of Sitaram Kesari. A total of Rs 1823 crores has been made by the IT department from Congress,” he said.

“We have analysed all violations of the BJP using the same parameters they used to analyse our violations… BJP has a penalty of Rs 4600 crore. The income Tax department should raise a demand from the BJP for the payment of this amount,” he added.

Mr Maken said that efforts are being made to weaken the Congress financially, by freezing the party’s bank account before the Lok Sabha elections.

Recently, the Delhi High Court upheld the Income Tax Appellate Tribunal (ITAT) order refusing to stay on the Income Tax notice for recovery of more than Rs 105 crore as outstanding tax against the Congress. The Court, while upholding the ITAT order, granted liberty to the petitioner’s Congress party to move the appellate tribunal afresh with the grievance.

The Congress has recently approached the Income Tax Appellate Tribunal (ITAT) against the recovery and has filed a complaint and sought a stay against Income Tax Department proceedings of recovery and “freezing” of their bank accounts.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Coming after a 11-year hiatus, the latest Household Consumption Expenditure Survey findings based on surveys conducted between August 2022 and July 2023, shall feed into a possible review of the Consumer Price Index. 
| Photo Credit: The Hindu

India’s headline inflation is expected to trend down creating more room for monetary and fiscal policy to focus on spurring growth rather than fret over inflation, if the latest Household Consumption Expenditure Survey (HCES) that shows a lower proportion of food spends for both rural and urban consumers, is used to rejig the Consumer Price Index (CPI).

The CPI, which is currently based on the 2011-12 consumption spending survey, assigns a weightage of almost 54.2% for rural consumers’ food and beverages’ expenditure and 36.3% for urban consumers, with the combined weightage for such expenses by all households at nearly 46%.

As per the HCES findings for 2022-23, rural spending on food and beverages has dropped to 46.4% from 52.9% in 2011-12, while urban peers spent 39.2% of their overall monthly outgoes on food compared to 42.6% incurred 11 years earlier.

“I think this will have serious implications. There will have to be a complete recast of the CPI that the National Statistical Office [NSO] produces. What is driving inflation today is food, while core inflation is down,” remarked NITI Aayog CEO B.V.R. Subrahmanyam.

“That’s what the Reserve Bank of India [RBI] also keeps saying… that food inflation is spiking, sometimes in onions, sometimes in vegetables, sometimes in pulses. Suddenly, if their share shrinks, your inflation will also probably go down and my suspicion is our inflation is over-reported,” he noted.

In January, core inflation, which excludes volatile energy and food prices, is estimated to have hit a record low of 3.7% in the current CPI data series which uses 2012 as a base year. However, food inflation stood at 8.3%, while food and beverages together clocked a 7.6% inflation.

Mr. Subrahmanyam stressed that rebalancing the CPI, with a lower share of food and cereals, will possibly lead to a reduction in retail inflation which will affect the RBI, which sets interest rates based on retail inflation trends. Economists broadly agreed with Mr. Subrahmanyam’s prognosis.

“Lower weights for food will tend to have a bias on core inflation and reveal lower headline inflation for sure. These weights need to be carefully assessed and ratified over a period of time. Hence choice of the base year is important,” Bank of Baroda chief economist Madan Sabnavis told The Hindu, adding that lower retail inflation would give the central bank room to focus on growth.

GDP math effects 

Coming after a 11-year hiatus, the latest HCES findings based on surveys conducted between August 2022 and July 2023, shall feed into a possible review of the CPI. However, the government is likely to wait for the results of a fresh HCES that began last August and will be completed this July, before pursuing the CPI reset. An official said that the ongoing survey would confirm whether the 2022-23 Survey’s findings are robust and realistic.

The NITI Aayog CEO said this would happen in due course and could also affect the calculation of the economy’s output in GDP (Gross Domestic Product) terms, because the deflators would change. “Suppose GDP was 330, and you deflated it by 10%, it would be 300. But if you deflate it by 8%, the GDP would be higher. I think all these things will happen,” he said.

An economist who didn’t want to be identified said one will have to wait for the complete findings of the latest HCES to ascertain the extent of changes in consumption patterns and the impact on inflation rates will depend on when the government opts to change the CPI base and weightages.

Unfortunately, ‘wise’ , ‘efficient’ and ‘government expenditure’ don’t usually feature in the same sentence. | Getty Images
| Photo Credit: Getty Images

“The Indian economy is expected to grow at an average rate of 6.7% per annum until the end of the decade,” CRISIL said in its latest report.

The economy will grow at this rate between the financial years 2024 to 2031, a notch above the pre-pandemic average of 6.6%. According to CRISIL, the key contributor to this trend will be capital.

“This is a result of the investment-driven strategy of the government when the private sector was shy of making investments.”

“The government increased capital expenditure significantly to support building expenditure and providing interest-free loans to states to bolster their own investment efforts,” the report said.

CRISIL said that after a robust 7.3% growth this fiscal, there will be moderation to 6.4% in the next financial year.

“There is also a need to monitor the impact of the escalation of the Middle East conflict on energy and logistics costs,” it said. “In India, the inflation level of 5.7% in December 2023 was driven solely by volatile vegetable prices and food-grain inflation,” according to the report.

“This will keep Reserve Bank of India cautious on the rate front as it eyes the four per cent inflation target,” CRISIL said.

“The continued softening of core inflation and deflation in fuel prices gives us hope, but the persistent high price levels of the food items, which has substantial weight in consumer price index (CPI), keep the risks of its transmission to non-food components,” the report said.

CRISIL said the Federal Reserve of the U.S. is expected to cut rates this year. The strong labour market data and higher-than-expected inflation have once more cast doubts on the timing and the extent of rate cuts expected to begin this year.