Proactive SC

CJI D Y, Chandrachud seems determined to shake up the system which has been somnolent since a long time. Some of the SC’s decisions have caused hidden skeletons to rattle in the cupboard and soon many are likely to fall out in the coming days.

The government must be apprehensive of the aftershocks. More so because the nation will be going for elections very soon. Many would be anxiously waiting for November when the CJI demits office. Until then, the wrong doers will be on tenterhooks not knowing when the axe would fall on them.

Anthony Henriques


Effectiveness of IBC

The article on “IBC should build on the positives” was timely and informative. It is time that Banks (Lenders or Committee of Creditors) realise the benefit of a strong buyer taking over the ailing company and to take a portion of equity in settlement of debt.

While it is true that investing in equities is not the main function of a bank and it does not result in instant liquidity for the bank, it does help in clean-up of the books.

More importantly, it helps in resolution of the debt and resumption of economic activity and revenue generation. A by-product may be the appreciation of market value of the such equity shares, which may benefit the lenders in the long term.

Kasiraman Ramachandran


Coffee concern

Deficient rainfall during crop year 23-24, drying of majority of ponds, severe summer heat, no sign of blossom showers, insufficient borewell yield for sprinkler irrigation and high chances of La Nina in H2 (March 22), the Karnataka coffee sector is highly concerned about the imminent reduced yield in the next crop season, which may hit the plant’s vegetative growth and give room for pests.

Coffee board and MoIC must come out with a long term action plan to support coffee growers with schemes to augment water harvesting which also enhances ground water levels in the region.

Rajiv Magal

Halekere Village (Karnataka)

Ambiguous signals

This refers to your editorial “Striving for balance” (March 22). It is evident that the Federal Open Market Committee (FOMC) has been conveying ambiguous messages regarding its stance on interest rate management.

This uncertainty has triggered turbulence for central banks in emerging economies.

Historically, the FOMC has prioritized containing inflation; however, in a recent meeting, Chairman Jerome Powell shifted focus towards a “dual mandate” that emphasises both growth and inflation control.

Given the stockpile of bonds, any decision by the Fed to reduce the size of its balance sheet could potentially counteract anticipated movements in interest rates, thereby exerting pressure on the anticipated three rate cuts proposed by the US Fed. So it is imperative for India’s MPC to take cognizance of the perplexing signals and prepare for Fed’s shift towards prioritising inflation control, thereby deviating from the anticipated rate cuts.

Srinivasan Velamur