One of the few peaceful districts in Jammu and Kashmir, Udhampur was recently besieged by two successive terrorist attacks, bringing the region back into the headlines. Whether it was the release of Masrat Alam, the proposal to resettle Kashmiri Pandits back in the valley, the new alliance, or the Armed Forces Special Powers Act (AFSPA), several controversies continue to linger.

Shujaat Bukhari, veteran journalist, writer and social activist, currently the editor-in-chief of the Srinagar-based newspaper Rising Kashmir, in his interview with Parth MN, talks about the reasons behind the discontent on the ground, the possible solutions and the role of the Indian state and media.

Udhampur has been a relatively peaceful district in the last decade. What do the two recent terrorist attacks indicate?
I think it is the absence of a political process that gives space to such incidents and the militants find a fertile ground for their activities. Yes, there is an increase in militant activities. The more worrying factor is that local educated Kashmiri youth are joining the ranks.

If the captured terrorist has been roaming in India for the last two months as he claims, doesn’t it point to a major security lapse?
That is a pertinent question. When the Army maintains zero tolerance on infiltration in Kashmir, but the captured militant says he was in the Valley for 45 days, it merits an answer as to where he was and how he got here.

We have also seen repeated instances of flags of ISIS and Lashkar being hoisted in the state. Do you think terrorist groups are exploiting the discontent?
The absence of political engagement on both tracks viz New Delhi and Islamabad and New Delhi and Srinagar leads to frustration, as the aspiration for resolving the Kashmir issue is a reality. Obviously, the youth give vent to their feelings by associating themselves with ideas that are quite distant to the ethos of Kashmir or for that matter, Islam. But the fact is that windows to other ideologies may open in case the political problem of Jammu and Kashmir is not addressed in right earnest.

What changes have you seen in Kashmir after the new government assumed power?
It is very difficult to judge a government so quickly. But the initial impression is they are not following the expected track. People voted Omar Abdullah out of power because they were frustrated. If this government follows the same path, the situation will worsen. People are cynical because they have seen the good period that Mufti Mohammad Sayeed had during 2002-05. But now, from day one, he has not been allowed to do anything political. When Masrat Alam was released there was a hue and cry, there was a controversy over Geelani’s passport as well.

The BJP and PDP seem to be at loggerheads with each other on these issues and in such a short time, their conflicts have come to the fore.
Both parties are poles apart, but they had no option, it was a tactical alliance. When PDP entered into agreement with BJP for government formation, one reason they cited was of liberal funding from the Centre. Where is that?

PM Modi visited Kashmir in mid-July where he announced a relief package. Have the flood victims been duly compensated?
It’s been a year since the floods last year, but nothing has been done to rehabilitate the lakhs of flood victims. The state seems to be choking and there is despondency all over.

Does it raise the question of the alliance breaking up?
I am not sure how long the coalition will last. But they have a compulsion to work it out, especially the BJP. They are in power for the first time in the state so they would want to make it work. But if they continue in this way, they will not be able to deliver anything tangible on the ground. Politics is the pivotal component behind the situation in the state.

One of the rare issues that the two partners are in consonance with each other is the proposed resettling of Kashmiri Pandits back in the valley. How do you look at it?
As far as the return of Kashmiri Pandits is concerned, nobody is against it. But there are two-three issues involved. If they return, where would they go? In a few rural areas, Pandits have their lands, orchards intact. But as far as the urban centres are concerned, most of the Pandits have sold their properties. So they will not be able to come back to where they originally resided.

The government has mooted the idea of building townships for them.
There is no point in creating ghettos, as they already exist in Anantnag, Sheikhpura etc. These clusters were created two-three years back, when the government announced a special job package for about 4,000 Pandits. But the long-term rehabilitation, or I would say, re-assimilation of Pandits, is a challenging task and cannot be seen in isolation. Building townships will not send a right message. The counter-argument to this would be “then they would not come back at all”. While it is a pertinent argument, as a Kashmiri, I would say the government needs to take the civil society of the existing Kashmir and the genuine representatives of the Pandits on board.

What do you mean by “genuine representatives”?
Not the usual suspects who have been thriving on the politics of division on both sides. It’s not to say that those groups are to be rejected completely, but it is important to have a comprehensive mechanism of consultation between Pandits and Muslims. They should be taken on board for arriving at a consensus on how this issue is to be dealt with.

There is massive mistrust between the two communities. How do you expect Pandits to trust their old neighbours after what happened in 1990?
We, as a society, are for their return. Whatever happened in 1990 was the darkest chapter in Kashmir’s history. Who is responsible and who is not is a different debate. There are many theories and perceptions. But is it wise to address this issue in isolation? There is mistrust between the two communities, but there are also good examples of bonhomie as well. When I go to Jammu and meet my old neighbour, classmate, or father’s friend, we are cordial and comfortable with each other. But largely, yes there is a gap. Because there has not been any effort to bring them to the table for discussion.

Do you think the idea defeats the purpose of integration?
Thrusting townships on Kashmiris will further aggravate the situation and divide the society. It defies the idea of integration, it defies every logic for that matter. Through townships, Pandits will return to Kashmir, not to their homes. Pandits are well-settled outside Kashmir. If you want to give them summer houses, it is fine. But do not call it integration. If you are serious about their re-assimilation into the society, there has to be a comprehensive strategy and consultation of the civil society on both sides.

Are the Pandits falling in the trap of the Sangh agenda?
Maybe they are. The resettlement plan is politically motivated. It has been BJP’s slogan and they have always been on the side of right-wing Pandits who have been talking about a separate homeland and all that.

Interestingly, the younger generation that did not experience the exodus, does not seem too keen to come back.
Youngsters would also like to come back to their roots, provided they get avenues. There is a serious unemployment crisis here. Why would they want to come back when there are better opportunities elsewhere in the country?

Apart from a dialogue between the two estranged parties, what is a comprehensive strategy to ensure a secure atmosphere in Kashmir?
Security can only be ensured when the civil society is robust and mingles with each other. But the fact is that security is still a concern. Do you think I am safe here? Nobody is. To ensure safety, one needs to do broader work. One has to create an atmosphere of peace and normality here. This can only happen if India engages with Pakistan. When the peace process existed from 2003 to 2008, there was visible change on the ground. When you talk to Pakistan and the people of Jammu and Kashmir, there is a favourable atmosphere. But on one hand, you do not engage with Pakistan because they are “rogue” and you also refuse to talk to any alienated section in Kashmir, including Hurriyat, because they too are “rogue and Pakistani agents”. Without engaging with them, the state will continue to be hostile.

You mention the peace process existed from 2003 to 2008, and that there was visible change on the ground. What changed after 2008?
I think first the ouster of Pervez Musharraf and then the Mumbai attacks changed everything. Till today, no serious effort is being made to pick up the thread from where it was. How long will you live with the hangover of Mumbai and Samjhauta Express? You need to overcome that and move forward. War is no solution.

As far as talks are concerned, is it not important for Pakistan to be as cooperative? On the one hand, Pakistan released our fishermen, on the other, there are instances like Udhampur and Gurdaspur where reports indicate Pakistan’s involvement. Should the talks take place on August 23-24?
I think both the countries have to be responsible. If Pakistan is lacking in controlling such elements, it is bad and they need to show that they are taking practical steps. But India also needs to show sincerity. I think calling off the Foreign Secretary level talks last year was a bad decision and put a break on the process.

What is it about the attitude of India towards Kashmir that worries you?
An individual like Masrat Alam is released and he is called a terrorist. There is uproar over a leader who wants to travel on a passport. On the one hand, you create all the fuss and on the other, you moot the idea of resettling Pandits, pretending things in Kashmir are normal. The fact is, you are not willing to concede the smallest space for dissent in Kashmir. It is imperative for India to engage with Pakistan and the discontented sections of Kashmir for any resident to lead a peaceful life here. Unless that process of reconciliation, peace and dialogue is initiated for the permanent resolution of Kashmir, you cannot have a peaceful atmosphere here. Today there is complete deadlock. As of now, the Indian government is showing contempt towards the people of Jammu and Kashmir who have problems with India. It is virtually disregarding them by ignoring their opinions. It is important to recognise the political disconnect and dissent on the ground in Kashmir, which the Indian state refuses to do.

The issues of Masrat and Geelani were taken up by the media. Is the media also culpable?
The jingoistic and ultra-nationalist Indian media has been misinforming the public at large in India. They are not doing any service to the country by giving much hype to petty issues. If they are calling Mufti “pro-Pak”, then who is Indian in Kashmir for them? It is a question they need to answer.

Were the two issues blown out of proportion? Also, is it not expected for any Indian to express disillusionment if Pakistan flags are raised in Kashmir?
It was blown out of proportion. Flags of Pakistan have been raised from the last 67 years. Has anything changed on the ground? Media has every right to raise issues and concerns of the public, but it has no right to dictate.

Do you think Masrat deserved to be out?
When Afzal Guru was hanged, you said the Supreme Court has given the verdict. Despite the fact that he was 27th on the list. Now when the same Supreme Court says Masrat’s detention is unjust, you refuse to accept it. You cannot cherry-pick. It is the same Supreme Court of India, not Pakistan.

You mentioned the fact that there is discontent towards India among Kashmiris in the valley. Do you think it has anything to do with unemployment? Or is it completely political?
I do not think stone pelting by Kashmiri youth has anything to do with unemployment. There is a huge political discontent on the ground and a Kashmiri youth does not reconcile with being an Indian. That is the reality on the ground. The youth are alienated from India. Unemployment could be a factor but we cannot mix the two issues. The dominant reason is the discontent, especially that the educated Kashmiri youth has towards the Indian state. Even if you give jobs, the political problem will remain as it is. You have to first accept that it is a political problem. And it has to be addressed through political means.

Does the discontent stem from the manner in which the Indian army treats civilians?
AFSPA is a black law and it has been unnecessarily thrust upon the people of Kashmir. There is no reason why it should not be withdrawn. It defies logic. Tripura has done it recently and J&K should follow suit. It gives unbridled powers and immunity to the Army and paramilitary forces to kill anybody and not be held accountable. You cannot solve the Kashmir issue through the barrel of the gun.

During the election campaign, parties promised many things. One of the most important was the release of people languishing in jail. What has happened on that front?
They released one individual (Masrat Alam) and you have seen the hullaballoo (laughs). But they must adhere to their promises and consider releasing youngsters who are languishing in jail and have been undertrials for a long time. Especially those boys who are booked under the Public Safety Act, which was also declared as a ‘lawless law’ by the Amnesty International.

The atrocities by the Army, or the Public Safety Act that allows authorities to put anyone jail, seem to be at the core of resentment of Kashmiris, especially youngsters. Apart from the two reasons you mentioned, there are examples of Kashmiris being discriminated in various parts of India as well. Whether being denied a flat, hotel room, persecuted after a cricket match; these are all offshoots of the larger discrimination. There are examples of Kashmiris languishing in jails in various parts of India without any trial. Someone told me about a Kashmiri who has been implicated in a fabricated case in Gujarat. He has not been allowed access to his lawyer. In this context, how do you expect a Kashmiri youngster to raise an Indian flag in Kashmir?

Srinagar, Aug 16 (PTI) Chief of radical women’s outfit Dukhtaran-e-Millat, Asiya Andrabi, has stoked a controversy by addressing a rally organised by Mumbai mastermind Hafiz Saeed-led Jamat-ud Dawa in Pakistan.

In her telephonic address to the rally, organised in Lahore on August 14, Andrabi greeted the people of the neighbouring country on their Independence Day.

Saeed was seen sitting on the stage during Andrabi’s address.

Hours before her address, the DeM chief had celebrated Pakistan’s Independence Day at her residence.

Dozens of DeM activists had gathered in Bachpora area of the city where they celebrated Pakistan’s Independence Day.

Andrabi’s telephone address triggered a controversy with BJP’s Jammu and Kashmir unit president Jugal Kishore demanding strict action against her.

“These are instances of treason and will not be tolerated at all…Asiya Andrabi should be arrested.I expect that she would have been arrested by now and a case of treason would have been registered against her.”

Congress spokesman RPN Singh demanded that concrete action should be taken against those working against the state.

“The NSA-level talks are slated to be held on August 23-24. A lot of talks have happened and the government claims about a breakthrough. But, with the terrorists attacking India, there is an urgent need to take concrete action against them, whether it is Hafiz Saeed or Zaki-ur-Rehman Lakhvi via these talks with Pakistan.”

JKNPP leader Harsh Dev Singh noted that this was not the first time that Andrabi has indulged in such acts.

“I don’t understand why these people have been given a long rope by the present government in J-K. They ought to have booked the culprits by now, because it’s not the first time that Asiya is indulging in such kind of anti-national activities… So, we feel unnerved by the government’s approach in taking action against people like her.”

Andrabi had earlier also celebrated Pakistan’s National Day on March 23 this year and hoisted the flag of that country, following which the police had registered a case against her under the Unlawful Activities Prevention Act.

Tianjin, Aug 16 (PTI) The death toll in twin blasts in this eastern Chinese port city today rose to 112 after authorities recovered more bodies from the debris, as 95 people are still missing, officials said.

“By 9:00 am (0100 GMT) on August 16, the total number of deaths was 112,” said Gong Jiansheng, the deputy chief of the city’s propaganda department.

More than 700 people were injured and 85 firefighters and 10 others are still missing since the blasts shook the area.

So far 21 fire firemen, who were among the first batch of firefighters rushed to put off the fires at the warehouse before the explosions, were killed. The deaths of firefighters is the highest so far in a tragedy in China’s recent history.

Members of the families of the?missing firemen have been agitating calling for more information about their dear ones.

About 722 people are hospitalised of which 58 are in critical or serious condition.

An Indian employee of a firm based in Tianjin was injured and has been treated for non-lethal injuries, officials said.

A total of 47 people have been rescued, said Zhou Tian, head of the city’s fire department.

Officials said the fires have been put out and no further explosions were expected.

Some minor explosions followed by fires were reported from the area yesterday, three days after the massive blasts.

A man in his fifties was rescued from the blasts site yesterday by specialised anti-chemical soldiers who found him 50 meters away from a burst point. He was conscious and could talk and was rushed to a hospital in the city.

A total of 70 specialised anti-chemical soldiers entered the core area of the blasts site yesterday to search for possible lives for the first time after the blasts.

Meanwhile, 1,100 troops were combing nearby residential quarters home by home to search for potential survivors.

Wen Wurui, head of the Tianjin municipal bureau of environmental protection, said environmental specialists are taking measures to prevent air and water pollution caused by chemicals leaked from the blasts, specially after the confirmation of the sodium cyanide at the blasts site.

Nuclear and biological detections teams yesterday found evidence of sodium cyanide, a deadly chemical that emits highly toxic gases if it is burnt or comes in contact with water along with other chemicals.

President Xi Jinping has asked officials to learn from the “extremely profound” lessons paid for with blood.

Xi said in written instructions that the Tianjin blasts and a string of serious accidents recently exposed severe problems in the work safety sector, and authorities must always keep “safe growth” and “people’s interest first” in mind to avoid such accidents.

He demanded a better emergency response mechanism.

While confirming the presence of cyanide, state-run CCTV said the substance in the form of crystal powder can be rapidly fatal if it is inhaled or injected as it interferes with the body’s ability to breathe oxygen.

New York: An investment adviser of Indian descent has admitted to a $9million-fraud involving Facebook stock Thursday, the Federal Bureau of Investigation announced.

Gignesh Movalia, the founder of OM Global Investment Fund, pleaded guilty in Tampa before Federal Magistrate Judge Anthony E. Porcelli to one count of investment advisor fraud. He is to be sentenced later.

Federal Prosecutor A. Lee Bentley III said Movalia solicited investments in his fund claiming that he could get shares of Facebook before its initial public offering. He raised more than $15 million, of which $9 million was buying Facebook shares. However, Bentley said in a statement, Movalia used the $9 million for other investments and hid this from the investors.

Ultimately, OM Global Investment Fund lost $9 million and went broke, Bentley said.

Last year in June in a separate civil suit filed by the Securities and Exchanges Commission, Federal Judge Jose E. Martinez in Miami ordered Movalia and OM Investment fund to pay up $1.729 million in illegal profits and fined him $300,000.

In additon to the Facebook stocks fraud, the SEC had also accused him of making improper loans to third parties and creating an institution with a name similar to OM Investment Funds to evade monitoring by a Florida state court and using it to solicit funds.

Washington/New York, Aug 16 (PTI) The Indian community in the US celebrated India’s 69th Independence Day with fervour by unfurling the national flag and organising cultural events to mark the occasion.

India’s Ambassador to the US Arun K Singh read out President Pranab Mukharjee’s national address and hoisted the tri-colour at a function at his residence here.

Singh said as the defining partnership of the 21st century in the world, India and the US are enhancing their ties not only at the bilateral level, but also at the regional and global levels.

“With the historic visits of Prime Minister Narendra Modi in September 2014 and President Barack Obama in January, the leaders of both countries have given a great impetus to the momentum of this relationship,” he said.

“Our bilateral trade and investment, which are reaching new heights, are encouraging us to aspire for higher goals.

Our cooperation has deepened in the established sectors while new fields are continuously added to widen our relationship.

People-to-people contact is one of the strongest pillars of this growing relationship,” the Ambassador said.

The flag-hoisting ceremonies at various places were attended by a cross-section of the local Indian community, diplomats and government officials.

In Houston, Consul General P Harish unfurled the national flag at his residence, while the Indian Consul General in San Francisco hoisted the tri-colour at the historic Gadar Memorial, which was thronged by Indians.

Consul General in Chicago, Dr Ausaf Sayeed, hoisted the flag and Consul General Nagesh Singh unfurled the tri-colour in Atlanta.

Consul General in New York, Dnyaneshwar M Mulay, hosted the Independence Day celebrations where diplomats from Sri Lanka, Nepal, Pakistan along with the community leaders were in attendance.

Mulay in his address urged the Indian community to form “India-centric think tank” to propagate the country to the global community in a bigger way.

The tricolour was hoised at India’s Consulate General and its Permanent Mission to the UN in the presence of hundreds of diplomatic officials and members of the Indian-American community.

Permanent Representative of India to UN Ambassador Asoke Mukerji hoisted the national flag at the mission premises and readout excerpts from President Pranab Mukerjee’s address to the nation.

The brief ceremony at the mission was attended by over 150 guests including senior Indian officials of the United Nations, Indian Army and Police officers on deputation to the UN.

Under Secretary Generals of the UN Vijay Nambiar and head of the UN Department of Field Support Atul Khare were also present.

New Delhi, Aug 16 (PTI) To protect the interest of domestic workers, the government is readying a national policy that proposes a minimum salary of Rs 9,000 per month for the skilled full-time household helps, along with a host of benefits including social security cover and mandatory leaves.

The draft ‘National Policy for Domestic Workers’, which would be soon moved for approval of the Union Cabinet, also calls for provisions against sexual harassment and bonded labour and recommends compulsory paid leave of 15 days a year as also the maternity leave.

Besides, the Policy provides that the domestic workers be given a right to pursue education, a safe working environment and a grievance redressal mechanism. It also has a provision for mandatory contribution from the employer towards social security of the domestic workers.

Workers and employers will also have rights to form groups and engage with each other for ‘collective bargaining’.

A draft note in this regard, prepared by the Director General Labour Welfare (DGLW), was submitted to Labour Minister Bandaru Dattatreya last week.

“The Domestic Workers Policy has to be framed. Domestic workers are also subjected to exploitation and therefore the welfare and protection of domestic labour force is very important,” Dattatreya told PTI.

“The policy framework is on par with the standards of the International Labour Organisation. India has adopted the ILO convention on domestic workers and therefore we have to make a policy for this segment of the society,” he said.

Once it comes into force, the policy will make it binding to enter into a tripartite agreement between the employer, the worker and the intermediary agency that connects the two, a senior Labour Minister official said.

The draft policy recommends minimum monthly wage for unskilled, semi-skilled, skilled and highly-skilled categories of the domestic workers.

“Highly-skilled and those giving full-time service should be eligible to get a salary of at least Rs 9,000 per month,” the official said, while adding that the aim of the policy is to empower the domestic workers by making this large workforce a services industry in due course of time. .

A physically challenged shopkeeper was allegedly attacked with a sword in suburban Chembur following which four persons have been arrested, police said on Thursday.

The incident took place on Tuesday evening when the main accused Akram Sheikh (28) entered the shop of Rajnish Thakur (36) at P L Lokhande Marg in Chembur and attacked him with a sword, Tilak Nagar police station’s senior inspector Bhagwat Sonawane said.

Thakur, who is physically challenged, was saved from the attacker by a customer inside the shop who managed to overpower Sheikh, he said adding that the accused is part of a gang of drug addicts which has been extorting money from shopkeepers since sometime.

The incident was captured in a CCTV camera installed in the shop, Sonawane said adding that with its help, they managed to nab four members of the gang.
The four men arrested yesterday were remanded in police custody till tomorrow by a local court, he said adding that search was on for two more persons in this connection.
Meanwhile, the shopkeeper was admitted to a nearby hospital, police said.
According to Thakur’s brother Manish, a group of drug addicts had been allegedly trying to extort Rs 1,500-2,000 every month from the 200 odd shops on P L Lokhande Marg area of Chembur while threatening to damage their establishments if the money was not given.
“My brother and I had distributed pamphlets and put up small posters outside shops in Chembur so that the shopkeepers refuse to pay the extortion money,” he claimed.
“In last one-and-a-half month we had informed police thrice about threats for extortion from junkies in the area.
But, neither preventive nor any other appropriate action was taken,” he alleged.
“Few days back, my brother and I had taken a group of shopkeepers to DCP (Zone VI) and informed him about the constant threats. The DCP had instructed the concerned police personnel to take action against the culprits,” he said.
However, no action was taken by the police. Were the cops waiting for such an untoward incident or someone to die for taking action against the hooligans? he asked.
DCP (Zone VI) Sangram Singh Nishandar was unavailable for comments in this regard.

With 26.5 million smartphones shipped in the second quarter of India representing a 44 per cent growth year-on-year (y-o-y), IDC predicts by 2017 India will overtake US to be the second-largest smartphone market globally.

IDC expects India to maintain a double-digit growth rate over the next few years as people switch to smartphones and gradually upgrade to 4G.

This strong June quarter performance saw smartphone shipments grow 19 per cent following a sluggish March quarter, said International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker. A total of 18.4 million units were shipped for the same period last year.

However, this growth was specific to smartphones only as the overall Indian mobile phone market shrunk six per cent in the June quarter on a y-o-y basis. Vendors shipped 59.4 million units in April-June period of 2015 compared to 63.2 million units shipped in the same period a year ago.

According to Kiran Kumar, research manager with IDC’s India Mobile phone team, e-tailers opened additional avenues for growth for many vendors in India, who would have otherwise struggled to get a hold in the complex distribution network. Although India remains a retail dominated market, vendors such as Lenovo and Xiaomi have used e-tailing channels in India to rapidly expand their presence. “The share of smartphone shipments through e-tailers increased for most of the key vendors in June quarter,” added Kumar.

In addition, Chinese vendors have tripled their shipments y-o-y in India and doubled quarter-on-quarter (q-o-q). Lenovo, Xiaomi, Huawei and Gionee alone accounted for 12 per cent of the total smartphone market in the June quarter, double from a year ago.

“As China started to slow down, most vendors from the country have targeted India as the next big growth market for smartphones,” said Kiranjeet Kaur, research manager with IDC’s Asia/Pacific Mobile phone team. The new entrants to the Indian market have utilized specific strategies to drive sales growth, according to Kaur. “Key to the success of the Chinese vendors has been popular flash sales through online players such as Flipkart, Snapdeal and Amazon. At the same time, they also focused on bringing more 4G phones at affordable $100-150 price points, which has been left unattended by Indian and global vendors.”

Except for Lenovo, the top vendors in the June quarter still had majority of their shipments going through traditional channels.
Among the vendor ranking, Samsung continues to be the leader in the Indian smartphone market despite q-o-q shipment decline, while growing shipment on a y-o-y basis. The resultant volume growth y-o-y came from their phones in the affordable segment such as the relatively new Galaxy J1, and older models such as the Galaxy Core. Performance was not boosted by the first full quarter of sales for the new Galaxy S6 and S6 edge.

Micromax made a comeback this June quarter with 60 per cent q-o-q growth. Even though its AndroidOne phones and the Yu Yureka phones got off to a slow start, its other smartphones in the $50-150 price segment, where it is traditionally strong, performed well. Intex captured the third position.

Prime Minister Narendra Modi needs to offer much more than just his best intentions to clean up India’s whimsical tax regime to help convince insurers.
Companies from Allianz SE to American International Group Inc. are avoiding offering tax-liability coverage in India’s cross-border mergers and acquisitions market because of a relatively high risk of disputes. None of the 21 general insurers operating in the country provides cover for tax risks arising from M&A transactions.
“No one is comfortable offering that product in geographies without a stable tax regime,” said Sushant Sarin, senior vice president for commercial lines and broking at Tata AIG General Insurance Co., the local unit of the New York-based insurer. “Demand for insurance cover on cross-border deals tax risks in India has been surging, though.”
More than a year after coming to power, Modi has failed to allay investor concerns over a law that allows authorities to make retrospective tax claims. Instead of repealing it, he promised to refrain from reviewing old deals, adding to the muddle as authorities face pressure to boost one of the world’s lowest tax collection rates.
Vodafone, Nokia
Tax indemnity insurance is purchased either by the buyer or seller involved in an acquisition, where a known tax issue has been identified during due diligence process. The insurer typically agrees to compensate for any additional taxes, interest or penalty that has to be paid by the insured in the transaction.
Cross-border deals involving overseas companies and their Indian units spark transfer pricing questions about how to value the transactions for tax purposes. Modi has blamed decisions by the previous government for some of the recent tussles.
Some of the companies embroiled in tax disputes with India’s finance ministry include Nokia OYJ, Vodafone Group Plc, Cairn India Ltd. and Cadbury chocolate maker Mondelez International Inc. for total claims of about $10 billion.
In the Nokia case, tax spats forced the company to suspend operations at its factory in Chennai last year, with thousands of workers offered voluntary retirement.
Deals Rise
The $3 billion case over capital gains from Vodafone’s 2007 acquisition of Hutchison Whampoa Ltd.’s Indian business is going into international arbitration even after India’s Supreme Court ruled against the government’s claim in 2012. Cairn India has said its $3.3 billion dispute will deter overseas investment. Mondelez is contesting an excise duty claim.
The bad press may be deterring some companies from pursuing deals in India, said Jacob Mathew, managing director and co-founder of Mumbai-based investment bank MAPE Advisory Group Pvt.
“Many transactions haven’t happened as tax indemnity insurance is not available in India,” he said. “Corporates who are new to India find this daunting.”
Still, mergers and acquisitions involving Indian companies have touched $48.4 billion this year, 11 percent more than the whole of 2014, according to data compiled by Bloomberg. Overseas firms have announced $13.2 billion of acquisitions in India this year, versus $17.1 billion in 2014.
Even after Modi told investors on a trip to Germany in April that India is a “changed country” with a more “transparent, responsive and stable” regulatory framework, officials on the ground are often under pressure to pursue claims to shore up revenue.
‘No Product’
Modi’s government has vowed to narrow the budget deficit to 3.9 percent of gross domestic product in the year to March 31, 2016, with a projection of 16 percent increase in tax collections. India’s tax-to-GDP ratio was 10.8 percent in 2012, higher than only 12 of about 200 countries tracked by the World Bank.
“This is an issue investors have to deal with and hence makes deals more complicated to execute,” Ajeeth Narayan, country head for India at Investec Plc, which owns a bank and money manager in South Africa and the U.K., said in an e-mail. “Then, there is the additional cost element for covering off this risk as well.”
A transparent tax regime is important for a robust mergers and acquisition market as investors want to grow their business rather than get drawn into a long battle with tax authorities, he said.
Underwriting and pricing risk in a segment where the law changes retrospectively is a challenge, according to Tata AIG’s Sarin. Insurers offer the tax indemnity insurance in markets with stable tax regimes such as the U.S., U.K. and Singapore, he said.
“We have no such product in the Indian market and neither does anyone else to the best of my knowledge,” said Sasikumar Adidamu, Mumbai-based chief technical officer for non-motor insurance at Bajaj Allianz General Insurance, the local unit of the Munich-based insurer.

India -born Sundar Pichai has been named the new chief executive of Internet-giant Google. This news came on the back of a new holding company Alphabet, which will host Google and its other businesses as subsidiaries. Co-founder and current CEO of Google, Larry Page announced the inception of Alphabet, Google’s new holding company. Larry Page will step down as Google’s chief and Pichai will take over his position. Page will take the helm as the new CEO of Alphabet.
Sundar Pichai was born in Chennai on July 12, 1972 and his original name happens to be Pichai Sundarajan.

He did his schooling from GRT Mahalakshmi Vanavani School, which was in the Indian Institute of Technology, Chennai campus. He graduated from IIT Kharagpur as a Metallurgical Engineer, and holds a Post Graduation (MS) degree from Stanford University. He also holds an MBA from Whaton School of University of Pennsylvania.

He has keen interest in Cricket and was the captain of his school cricket team.

Sundar Pichai joined Google in 2004 as the head of product management and innovation efforts, leading the team working on Google’s Chrome browser and operating system.

He most recently served as the company’s senior vice president of products.

He was the one who started Google search tool bar when Internet Explorer was dominating the internet world. Pichai launched Chrome browser in 2008, which became the game changer in the browsing world.

Sundar Pichai took charge of Gmail and Google Docs in 2011. The same year he was promoted to Senior Vice President of the company.

After a year in 2013, Pichai was made the head of Android and in 2014, the Google Product Czar. The same year he was named the company’s product chief where he brought in services like Google Maps and Google+.

Sundar Pichai is referred to as Larry Page’s right-hand man. While announcing Alphabet, Page’s blog post said, “Sundar has been saying things I would have said for quite some time now and I have been tremendously enjoying our work together.”

Pichai said, “For me, it matters that we drive technology as an equalisisng force, as an enabler for everyone around the world. Which is why I do want Google to see, push and invest more in making sure computing is more accessible, connectivity is more accessible.”

Later during the day, Sundar Pichai took to twitter to thank people for wishing him luck.