December 18, 1994

Confusion continued to prevail in the capital today with conflicting reports about the resignation the Minister of State for Food, Mr. Kalpnath Rai. Sources close to Mr. Rai claimed that he had not submitted a formal resignation, but only offered to resign from the Ministry, if the Prime Minister, Mr. P. V. Narasimha Rao, so desired. They also claimed that the Prime Minister had not asked Mr. Rai to step down. However, the Food Minister has come under intense pressure to resign after the Gian Prakash Committee blamed him for the sugar crisis. Rai said he would offer to resign “to strengthen the hands of the PM.”

Consumer Forum notice to GTB on allotment

A possible clerical error on the part of the Registrars to Global Trust Bank’s recent public issue in the allocation of shares is likely to cause a major embarrassment for GTB with one of the applicants approaching the Consumer Forum here seeking redressal of his grievance and payment of refund money of Rs. 98.25 lakhs with interest. The State Commission for Redressal on Consumer Disputes today admitted a petition filed by Mr. K. Gopala Krishna Rao, the applicant.

Jayalalitha demands recall of Channa Reddy

The Tamil Nadu Chief Minister, Ms. J. Jayalalitha, today demanded the recall of the Governor, Dr. Channa Reddy, and the appointment of another Governor in his place. In a nine-page statement released tonight condemning Dr. Reddy’s reported threat to dismiss her Government, Ms. Jayalalitha declared that her Government, her party and the people of Tamil Nadu who had voted her to power, would not be cowed down by such threats.

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