NBFC crisis

This refers to the editorial ‘Rein in risks’(May 6). The ongoing liquidity crisis facing NBFCs points to how far fund investor can rely on the ratings of rating agencies. The fact is that the rating agencies failed to detect the liquidity problems of the companies. As a result, investors’ interests have been jeopardised.

The liquidity crisis in NBFCs shows that the agencies did not re-rate their ratings according to the emerging situations. Had they envisaged such situations in advance, the present defaults would not have occurred. The PFRDA must be vigilant while deploying funds to avoid the loss of confidence of retail investors. If the NBFC crisis is not addressed via remedial measures, its effects could spill over to other segments of the economy as well.

Kottayam

After a silence of five years, former prime minister Manmohan Singh spoke elaborately about the performance of the present ruling party. The Indian economy, he said, was over-regulated and the government tried to control almost all departments, including independent organisations like the RBI, CBI, courts and the Election Commission.

He strongly criticised demonetisation as lacking in vision and understanding the dynamics of the economy. The Finance Ministry’s latest monthly report shows that the country is heading for a slowdown.

The reasons for this is declining growth of private consumption, tepid increase in fixed investment, and muted exports. Demonetisation had a monstrous effect on the public and decimated the informal and unorganised sectors, rendering crores of people jobless. The current government is boasting about attracting investments, but in reality FDI growth is at a five-year low and the core sector, at a two-year low.

Manmohan Singh is right when he says that given the big majority the Modi government enjoyed in Parliament it could have utilised its political capital better to reap benefits for the country on the economy front.

Bheemavaram, AP

When the Supreme Court of India faced a challenge to its institutional integrity following one of its ex-employees levelling charges of sexual harassment against Chief Justice Ranjan Gogoi, the apex court responded well by instituting a three-member panel to investigate the charges.

But big shadow has now been cast upon the credibility of the panel with the complainant publicly raising an allegation of her not being allowed to hire a lawyer by the panel. As the panel is dealing with a sexual harassment charge against the sitting CJI, it is incumbent upon it to adopt a procedure that would guarantee fairness and equality to the complainant. The highest court of the land cannot afford to ignore the call from many for instituting processes to mitigate the perceived unequal power relations in this case.

In this context, Justice Chandrachud’s letter calling for the panel to either accede to the complainant’s request for a lawyer or appoint an amicus curiae (a person who will assist the court by offering information or expertise in a case) for the probe has assumed much significance. It is hoped the Supreme Court will pay heed to the message of one of its senior judges and ensure the credibility of the probe doesn’t get shattered on the ground.

Sholavandan, TN

This refers to ‘Money power, hate speech and the EC’. Without an iota of doubt this is dirtiest elections in a long time where below the belt and insensitive remarks have become the norm. Our politicians are as much to be blamed as the Election Commission. It was former EC chief TN Seshan who gave much-needed teeth to the EC and redefined the way elections were conducted. The Model Code of Conduct is now being flouted brazenly by our leaders. Cash and liquor are key factors in our elections, especially in rural India where the voters can be easily manipulated. The EC has been found wanting in all parameters.

Noida

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