CPI – Artifex.News https://artifex.news Stay Connected. Stay Informed. Mon, 29 Jun 2026 17:53:00 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.3 https://artifex.news/wp-content/uploads/2026/05/cropped-cropped-app-logo-32x32.png CPI – Artifex.News https://artifex.news 32 32 CPI, CPI(M) on the same page over PM SHRI, says Binoy Viswam https://artifex.news/article71162172-ecerand29/ Mon, 29 Jun 2026 17:53:00 +0000 https://artifex.news/article71162172-ecerand29/ Read More “CPI, CPI(M) on the same page over PM SHRI, says Binoy Viswam” »

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The CPI and the CPI(M) have the same position on the Centre’s PM SHRI (Prime Minister Schools for Rising India) school scheme, CPI State secretary Binoy Viswam said on Monday (June 29), rejecting the United Democratic Front’s (UDF) allegation that the CPI(M) had signed up for it without informing its Left ally.

Addressing reporters here, Mr. Viswam said the CPI(M) had not gone ahead with the scheme and described the UDF’s claim that the CPI was unaware of the alleged agreement as “a blatant lie”. He also asserted that Kerala had not received any funds under the PM SHRI scheme.

The CPI leader’s comments come amid an ongoing war of words between the Left Democratic Front (LDF) and the UDF, with both sides taking potshots at each other and accusing the other of “surrendering to the Sangh Parivar agenda” by the reported move to go ahead with the scheme.

Mr. Viswam alleged that the Congress and the Indian Union Muslim League (IUML) could align themselves with the RSS agenda, but maintained that the CPI and CPI(M) would not do so.

Seeks PM’s intervention

Referring to senior journalist R. Rajagopal’s allegation that his passport renewal has been held up after his name was deleted from the special intensive revision (SIR) of electoral rolls, Mr. Viswam termed it a witch-hunt by the BJP-led Central government.

Mr. Viswam said the CPI has written to Prime Minister Narendra Modi, seeking his intervention against the alleged injustice.

Mr. Viswam also accused the UDF of moving towards a pro-feudalist stance with its Budget proposals. He said the proposed Mission Samudra project would lead to the exploitation of coastal regions and plunder of mineral resources.



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Chintalapudi Lift Irrigation Scheme brooks no further delay, says CPI https://artifex.news/article71129048-ecerand29/ Sun, 21 Jun 2026 13:25:00 +0000 https://artifex.news/article71129048-ecerand29/ Read More “Chintalapudi Lift Irrigation Scheme brooks no further delay, says CPI” »

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CPI State secretary G. Eswaraiah has urged Chief Minister N. Chandrababu Naidu to allocate adequate funds for completion of the long-pending Chintalapudi Lift Irrigation Scheme and ensure fair compensation to the farmers and families displaced by land acquisition for the project.

In a letter addressed to the Chief Minister on Sunday, Mr. Eswaraiah said the irrigation scheme, designed to lift Godavari waters and provide irrigation and drinking water to the upland regions of the erstwhile West Godavari district and parts of Eluru and NTR districts, remained incomplete despite being launched nearly 17 years ago.

He recalled that the project had been initiated in 2008 during the tenure of former Chief Minister Y.S. Rajasekhara Reddy with an estimated cost of ₹1,701 crore. After bifurcation of the State, the project was expanded in 2017 under the government led by Mr. Naidu to cover additional ayacut in the present-day NTR district.

The revised project envisages lifting 53.5 tmc ft of Godavari water to irrigate about 4.8 lakh acres and provide drinking water to several villages, with the cost revised to ₹4,909 crore, he said.

Mr. Eswaraiah expressed concern over declining groundwater levels in several mandals of Chintalapudi and Polavaram constituencies, forcing farmers to depend on deep borewells. He said delays in land acquisition remained a major hurdle, with farmers demanding compensation based on prevailing market values rather than outdated rates.

Stressing that the project would be a lifeline for the drought-prone upland areas, he appealed to the government to expedite land acquisition, provide just compensation to the affected families, and complete the scheme within the time-frame announced by Water Resources Minister Nimmala Ramanaidu.



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Take special steps to ensure no citizen is left out of the rolls during the SIR, CPI(M) urges government https://artifex.news/article71114550-ecerand29/ Wed, 17 Jun 2026 16:10:00 +0000 https://artifex.news/article71114550-ecerand29/ Read More “Take special steps to ensure no citizen is left out of the rolls during the SIR, CPI(M) urges government” »

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A delegation of Dakshina Kannada unit of Communist Party of India (Marxist) led by District Secretary Muneer Katipalla submitting a memorandum to Deputy Commissioner H. V. Darshan, in Mangaluru on Wednesday.
| Photo Credit: SPECIAL ARRANGEMENT

Dakshina Kannada unit of Communist Party of India (Marxist) on Wednesday, urged the State government take special steps so that no citizen is left out of the electoral rolls during the Special Intensive Revision (SIR) of the rolls being undertaken by the Election Commission of India.

A delegation led by CPI (M) District Secretary Muneer Katipalla submitted a memorandum in this regard to Deputy Commissioner H. V. Darshan here. The party said the SIR will start in the State from June 30, and since the Election Commission is following the extremely difficult method of self-certification of citizenship by voters and inclusion in the voter list, it is necessary to ensure no citizen is deprived of the voting right.

The appeal has urged the Chief Minister to take some important steps, including simplifying the rules for obtaining documents for those who are unable to provide even one of the 11 documents prescribed by the ECI and providing the documents quickly.

A statement here said the CPI(M) has taken in principle stand that the ECI has no right to conduct SIR as per various provisions of the Representation of the People Act, 1950 and the Registration of Electors Rules, 1960. Yet, SIR is being conducted.

Many of the weaker sections including the poor, Dalits, Adivasis, minorities, migrant workers are facing the threat of being excluded from the voter list due to this SIR rule. The Election Commission has implemented the “logical difference” criteria in Karnataka, which has not been implemented in any other State except West Bengal. Spelling mistakes, age difference between voters and parents, inter-caste, inter-religious marriages, and those suffering from child marriage may have to face immense problems due to logical differences.

In this context, the Party has demanded in the petition that certain specific steps be taken to ensure the rights of voters. District Committee members Sunil Kumar Bajal, Vasantha Achari, B. M. Bhat, Sukumar Thokkotu, Sadashiva Das, J. Balakrishna Shetty and Yogish Jappinamogaru were present.



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CPI to take a call on tie-up with DMK this week, says Veerapandian https://artifex.news/article71076749-ecerand29/ Mon, 08 Jun 2026 18:18:00 +0000 https://artifex.news/article71076749-ecerand29/ Read More “CPI to take a call on tie-up with DMK this week, says Veerapandian” »

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CPI State secretary M. Veerapandian.

The CPI will take a decision on continuing in the DMK-led alliance at the conclusion of the party’s executive and administrative committee meetings to be held this week, its State secretary M. Veerapandian said in Denkanikottai on Monday.

On the sidelines of CPI-led protests against eviction orders issued by the Hindu Religious and Endowments Board to decades-old settlements on poramboke lands, he fielded queries from mediapersons on speculations of his party’s continuance in the DMK-led alliance on the heels of CPI(M) State secretary P. Shanmugam’s saying the DMK-led Secular Progressive Alliance did not exist. He said that was the CPI(M)’s stand, while the CPI would make an “authoritative” announcement after the executive and administrative committee meetings, scheduled from June 9 to 11.

Naturally, when all the parties that were part of the DMK alliance are now supporting or participating in the new government, such questions arise, the CPI leader said.

“An announcement on if we are still part of the alliance or have already parted ways will only come an authoritative statement after the party’s executive committee meeting this week and not as off-handed remark. “ Similarly, the party’s position on the bye-elections in Tamil Nadu will also be discussed, Mr.Veerapandian said.

At the same time, he expressed his dissatisfaction over DMK leader MK Stalin’s remarks doubting the longevity of the government under the TVK for beyond three months. “As a senior leader, it was not right on Mr. Stalin’s part to express such comments,” he said.

Mr. Veerapandian reiterated that the Left parties were very much still a part of the INDIA bloc, “which is of utmost importance” nationally.



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Kerala Assembly Elections 2026: CPI, Kerala Congress (M) suffer electoral drubbing in Ernakulam https://artifex.news/article70943218-ecerand29/ Tue, 05 May 2026 19:36:00 +0000 https://artifex.news/article70943218-ecerand29/ Read More “Kerala Assembly Elections 2026: CPI, Kerala Congress (M) suffer electoral drubbing in Ernakulam” »

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The Communist Party of India (CPI) and the Kerala Congress (M) faced electoral drubbing in the constituencies in which they had fielded candidates in Ernakulam district in the Assembly elections.

Though the outcome reflected the overall performance of the Left front in the State amid the ‘United Democratic Front wave’, the performance of the key alliance partners in the district showed a considerable decline compared to the outcome in the 2021 elections.



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Govt to release new series of retail inflation https://artifex.news/article70425667-ece/ Mon, 22 Dec 2025 11:07:00 +0000 https://artifex.news/article70425667-ece/ Read More “Govt to release new series of retail inflation” »

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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

The Ministry of Statistics and Programme Implementation on Monday (December 22, 2025) said that it will release a new series of macroeconomic data with a changed base year for retail inflation as well as national accounts in February and for industrial production in May next year.

The Ministry will hold a pre-release consultative workshop on the base revision of Gross Domestic Product (GDP), Consumer Price Index (CPI), and Index of Industrial Production (IIP) on Tuesday (December 23, 2025), said an official statement.

A new series of CPI (Consumer Price Index-based inflation) data with a base year of 2024 (2024=100) is scheduled to be released on February 12, 2026.

The data on National Accounts with financial year 2022-23 as base year is scheduled to be released on February 27, 2026, while the new series of IIP data with base year 2022-23 will be released on May 28.

Tuesday’s (December 23) pre-release consultative workshop follows the first one conducted on November 26 in Mumbai.

The primary objective of the workshop is to share the proposed methodological and structural changes in the ongoing base revision of GDP, CPI, and IIP to seek feedback and comments from the participants.

The workshop brings together a wide spectrum of participants, including eminent economists, experts from financial institutions and the banking sector, subject matter specialists, users of core statistics, and senior officials from Central and State Governments.

The participation of this diverse group is expected to enrich the discussions and familiarise users with the changes in the revised series.

The workshop will be attended by Suman K Bery, Vice-Chairman, NITI Aayog, as the chief guest, along with V. Anantha Nageswaran, Chief Economic Advisor, Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation (MOSPI), and N.K. Santoshi, Director General (Central Statistics), MoSPI.



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Controversy Erupts As CPI Invites Bangladeshi Singer To Event In Kolkata https://artifex.news/controversy-erupts-as-cpi-invites-bangladeshi-singer-to-event-in-kolkata-7391642rand29/ Fri, 03 Jan 2025 11:28:06 +0000 https://artifex.news/controversy-erupts-as-cpi-invites-bangladeshi-singer-to-event-in-kolkata-7391642rand29/ Read More “Controversy Erupts As CPI Invites Bangladeshi Singer To Event In Kolkata” »

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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.)




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Pinarayi Vijayan May Have A ‘Trojan Horse’ In His Ranks https://artifex.news/kerala-is-pinarayi-vijayan-government-seeing-a-palace-coup-6548093rand29/ Thu, 12 Sep 2024 09:12:36 +0000 https://artifex.news/kerala-is-pinarayi-vijayan-government-seeing-a-palace-coup-6548093rand29/ Read More “Pinarayi Vijayan May Have A ‘Trojan Horse’ In His Ranks” »

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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



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“CPI Received Income Tax Notice For Use Of Old PAN Card,” Says D Raja https://artifex.news/cpi-received-income-tax-notice-for-use-of-old-pan-card-says-d-raja-5337018rand29/ Fri, 29 Mar 2024 23:15:44 +0000 https://artifex.news/cpi-received-income-tax-notice-for-use-of-old-pan-card-says-d-raja-5337018rand29/ Read More ““CPI Received Income Tax Notice For Use Of Old PAN Card,” Says D Raja” »

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

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.)



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With food spends down in the country, growth may get leg-up https://artifex.news/article67886047-ece/ Sun, 25 Feb 2024 17:38:00 +0000 https://artifex.news/article67886047-ece/ Read More “With food spends down in the country, growth may get leg-up” »

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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.



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