LAND ACQUISITION IN NOIDA EXTENSION Give 10% of developed land to farmers, says SC Authorities told to raise compensation 64%; flat prices to soar MANSITANEA New Delhi, May hose who have invested in property in Noida Extension and parts of Greater Noida in the National Capital Region (NCR) have rea- son to rejoice. With the Supreme Court on Thursday ‘upholding the land acquisition by local authorities between 2006 and 2009, uncertaintyon about 100 residential projects inthearea has ended. However, new buyers or investors planning to buy an apartment in this region will have to spend 10-20 per cent more, as prices are expected to increase following ‘Thursday's court order. 100 REALESTATEresitentat 200,000-300,000 projects were hitin the area apartments affected TRACING THE TANGLE 2006-09: About 3,000 | compensation by 64% and hectares were acquired by give 10% of developed land government authorities | to farmers 2O10-M1: Farmers | 2011-12: Noida authorities Experts say currently, from 65vvillages _| challenge Allahabad HC an apartment in this went against | order in Supreme Court region costs %2,800- ‘the acquisition | Feb 2015: sc upholds order 4,000 per sqft, depend- process by local for additional compensation ing on te jain ay authorities | to farmers once demand picks up in ‘ . thea few months, prices might Oct20M: Allahabad HC | May 2015: Apex court stand at %5,000-5,500 per sq ft. “After this order, the confi- dence of buyers and investors will return. And, the sector will look to set up base in Noida Extension. With an increase in demand, pricesare bound to g0 up in the short term,” the chief ‘executive of an NCR-based firm told Business Standard. Data from research firm orders cancellation of land | dismisses all petitions filed acquisition in three villages; | against land acquisition by for the rest, it asks farmers, says no land will be authorities to raise | returned PropEquity show in the past 96.67 per cent and absorption two and a half years, there has _has fallen 87:1 per cent. been an increase of 10.67 per Tuin to Page 6 centin the prices of apartments in Noida Extension, while RESTOFTHENEWS 38> launches of units havedeclined » $C quashes NCIT provisions ‘Teamwork,For Civil Services Telcos’ plea for licence extension rejected The Supreme Courton Thursday dismissed a batch of petitions filed byvarious telecom companies, including Vodafone and Bharti Airtel, seeking extension of their spectrum licences. “We see no merit. The petitions are dismissed,” said a Bench of the apex court ” ‘Ranjit Sinha’s meetings need to be investigated’ Terming as “inappropriate” the alleged meetings of former Central Bureau of Investigation director Ranjit Kumar Sinha (pictured) with the accused inthe coal blockand 26 spectrum allocation cases, the Supreme Court said the matter “needs ‘to be inves- tigated”. 5»Dynastic politics and development ‘Teamwork For Civil Services The country has paid a heavy price for the single-minded ambition of some to promote their progeny ‘sonerefletsonthe Indian plc ext pextrmance over the let 20 yet or 0 is Sertha tbe coun bas pada peor ite ngleminded ambition otsome to promote it gory Athough hereae atable exceptions saat {hs Commun Paty of ada (Marat Congress an several regional partes including the Al Da ‘theSamahocifary. hs Ramzy Janta el GUD) 2 ‘Al iodia Anna Davide. Mune Kaeahagam (ALADMK) and Dewi “MuntraKxahgam (DAK) hve fen Placed the nee of fy member ‘Bove aoe nator even the par ‘yeoncemad. Tisartiefecusesn the ‘behamourofthie Congress eds they Verein power in De for tf the ‘eats th wehave been indopencen. ‘leary, the Congres oy as no simian with the Cones ofthe ee ‘lm stugele And ke galing tha this ‘uent ane family Congeslayscaimt ‘sinhertance made pasbleby these ‘Miceef counts Inaansduringtneeedom stusie ‘Theineviablequstionthen's—docatthe Gongs reali that tis doing se great service when ‘Sevatesmamibersofonly ane fay totssenir ost positions? The usual heltsniag, disappointing sponse f chat ithe fay at Holds the party ‘gece Lookingback waste of sei select ideals who vere tho feretont of the reo sug Twas “nforanatethathoss ori he dos and thes. "at a the strug or natlontiood was ove. They ‘ockup divers professions and let the posal space canted occupy server nce Ingpetendes inthe Congres the fesdomesrue generations radally fae aay by the ate 9705 (Commentaries that trae independent Indaseco- nomic development often use the expression JN BHAGWAT ‘Nehrwdnia) Gandhi legacy ad sugaest thatthe Congress was always synonymous with hs fry. Talsdos preatinfasietothe congress lenders ‘reedom sage who ed senior poston in cena ‘nd sate governments pet 94 As for Jabal [Nein respect of wast we may ow the about ‘anralplaning.dateownesship orexpo pesmi ‘th the benefit of hindsig, but for the untimely die of eu scond pane munis ‘er LalahadurShante theta ‘yofinian plies would havebexn ‘ey diferent swine Gach 2 eime mister hatch servants etonal yao er became mote i owerflthanemtalchicfminsers i were evaded with poste ‘mont sssigments,ncuding post tionsargoiemors Farther thesate level Congress adership was ‘delertely weakened topreventthe emergence coca eaders thee toralcletAcounterargument could be thar name recognition sect econ ad ‘heoe the lure of eynastc pots Howeve the fet [sthatnewparties forexample the Aa Aas Pay (AA cnand coasedin decors balan, propulsion of rosy totop mops ‘ons wato gount ee upp cece dsye lnwra party companion. This hes wo be inimical to Selocdon of the tues. Under such cheumstances, ‘aoe thinkin developmen to, would beat 8 ‘dscount Farle tot dominate parce ae ner. tmtly suspicious of those ho ste popular anor eee bap doen ula policalhalnge “The reform thit wore inated by the PV ‘Narsmaha Hap vernment 199 could Wel Rave ‘een embarked upon by ints Gand in 197 oe Instance, industria deticensing prgmatcaperach tomaugigthenipeechange ate iterlltionol ‘erelgn det ivestnent FD, sfornsinesuanceod ‘government et, improvements tn ankingandca- Eatmarets andsecing up ofasecuntes gtr n respec alte decades of much faster row {retwecr7Landi991 Incidentally Chipeseeconon ‘Erefnns std in December 7 (OF course, growth was hampered ty the Banglades warandindiraGanch's deosive lena ‘Stile ntematfonal environment i to her seat ‘edi, However herladeshi care increasing Populstodowndlssent abut her nept hardin {he economy. More cont ding the rl f the United ogresiveAliance {and I, the sparation tecneen government acarantbity afl polical ow ‘ex ehuchremained excusvly nthe rally. ‘edna umber of seams salle the fom process hampered development ‘What were 3 few the Hy dans that set the ‘economy backunder India Gand and Rally Gand seme nS a geal ak fra ‘Under Indra Gandhi wach, 20 commercial barks ete ndonateadand around ir thehighest ‘nal Income tax rate wat faloed to 975 per con Appointment oot secretes spl sector ind members reed more nefficines a ff than higher ending othe underserved seg ments mere sory. The 172 Foren Exchange Regultbon Ac wt expt of mvemment re Ingenextemety nefccnraranglebodover alten actonsin foreign exchange. nding FDL ‘Onapestve ot Infra Gandhi sarmesiment of the Connon in 7 to abolish pny pees aa ‘Wily welcomed. However, te imposition of the “Emergency in 95 whiisexcesespluspromoon o Say Gandh lod w outage and widespread angc Ti had pronounced naive pact on economic actty desptesuperika dscilinesoh sta on {ime The progestveemacculatoncftse cngrssin the sate abo lf Indi Gand wahout sounding nr around the cour. Powe, Ka Gani shou be gven credit fo Aaigling moves towards pene federalism as for Supporting teecommuniaton indus an sof twit businesses However, he was response fo [gnorng mounting goverarcntandextera deb tha teeertally othebaanceo amen css 99L af Gana ted woubleby allowing de Aes Bam cempe fb openedn 985 although it haben Ince upundes court odessne: B48 He wars ‘advaed nthe Shah Bano maintenance case to amend the law to overtum a Supreme Court iuderent ‘Steuer fs limedundertanigabeut armed Intervention abroad was shownup when he sone Taian Peace Keeping Force IPF) into Sri Lanka, ‘which resulted nove 1600 Indian amy casas “thout as coma have Seen anscets. nyt a Thowiorie “To conclude, he Congres needs ogo back to proindependence calif tito ply a constructive folio ple and cevelopment. One ayo fap the Congas ace this outcome so expe fnnerkor of pot leaderstip thru Live pub deste. Thshallow aneganceofdyass apparent ‘when they spat forexample about land acon Wit ite understanding about haw to provide ae fat cmployment to farmers as nda noes hap ‘aly towards higher levels oruranisaten ‘rewrote Teese PiaseargraonTeamwork. For Civil Services Imbalance returning? Govt cannot be complacent about current account he Indian economy’s vulnerability to external shocks increased enormously during 2011-13, when the current account deficit (CAD) rose from below three per cent of gross domestic product (GDP) to almost five per cent. There were regular episodes of currency tur- bulence during this period; the rupee depreciated by over 20 per cent until it hit the taper turbulence in 2013, when it fell further by a similar magnitude. Subsequent actions by the Reserve Bank of India (RBI) and the finance min- istry - such as imposing quantitative restrictions on gold imports — helped the deficit, and consequently the vulnerability, to decline dramatically during the second half of 2013-14 and thereafter. Over the past few months, the sense of security on the balance of payments has been enhanced considerably by falling oil and other commodity prices and the increase in capital inflows in anticipation of policy reforms and improved economic prospects. A CAD of below two per cent of GDP, along with moderating inflation and a degree of fis- cal restraint, has dramatically changed the macroeconomic situation — to the extent that concerns are being expressed about complacency leading to a lack of necessary emphasis on reforms. However, recent developments do suggest that some of the pressure points on the CAD are rearing their heads again. First, crude oil prices have risen appreciably from their lows of the past few months. Creditably, the gov- ernment has lived up to its deregulation commitments by not preventing the formulaic increase in retail prices of diesel. But the higher prices do have implications for macroeconomic stability. Second, gold imports have surged as the restrictions have been eased back. Lower prices and pent-up demand presumably explain this. But it also reflects the reality that for a large pro- portion of households with the capacity to save, gold is the most accessible asset. Third, the apparent success of the coal auctions notwithstanding, the fact is that India will be importing large quantities of coal for some time to come. It is going to take a couple of years or more for domestic coal supplies to increase significantly. Fourth, exports have declined in value relative to a year ago, partly the result of a sharp appreciation in the real effective exchange rate of the rupee, despite the RBI’s efforts to prevent nominal appreciation. Of course, it must be pointed out that the overall macroeconomic situa- tion is by no means under an imminent threat of collapse. But policy needs to be forward-looking, anticipating potential dangers and developing appropri- ate responses. The fact that much of the recent macroeconomic improve- ment is due to softening oil prices, which are completely out of the govern- ment’s control, must be acknowledged. The government has certainly taken meaningful steps, but the situation, in all likelihood, would have been much more delicate had oil prices been at or above the $100-a-barrel level. These recent developments, even if they eventually turn out to be benign, underscore the hazards of not utilising every window of opportunity, which can be very short-lived. If the government is forced to go into firefighting mode on account of adverse global developments, the prospects of structural reform could van- ish. This is a scenario that the economy simply cannot afford. It is best to work on the premise that the window is indeed closing and it is time to step on the reforms accelerator.WPI still Teamwork For BS REPORTER Civil Services New Delhi, 14 May holesale price index (WPI)-based deflation continued in April fora sixth month in a row. General wholesale prices fell 2.65 per cent in April, the most in not only these six months but also since the new WPI series waslaunched in 2004-08. The deflation in March was 2.33 per cent. There was inflation of 5.55 per cent in April of 2014. However, food articles defied the gen- eral deflationary trend, evenas its inflation eased in April to 573 per cent against 631 per cent in March, showed official data {issued on Thursday. The third advance esti- mate of the agriculture ministry put food- grain output five per cent lower in 2014-15 from the previous year. Itis yet to beseen if this would raise inflation in this segment. These days, the Reserve Bank of India (RBI factors in the consumer price index (CP) forits monetary stance. With CPIinfla- tion declining to a four-month low of 4.86 per cent, economists expect RBI to cut the policy rate by 0.25 per cent in its June mon: etary review. However, some advise cau- tion, due to the food part of the inflation. Evenas inflation in food items declined in April compared to March, the rate of rise in prices was higher for pulses, fruit, eggs, meat and fish. “The lagged impact of unseasonal rain, coupled with rising mer- cury levels, is beginning to have itsadverse impact on food prices...Thiscalls foraction from the government in the space of food ‘management and supply chain,” said YES Bank chief economist Shubhada Rao. She said there was a window for RBIto in negative zone WPI MOVEMENT OF PRICES = Y-0-¥% 2015 oa 2015, Nov Dec Jan Feb. Mar “2.17 Note:The base yeoris2004-05 2.33 ease the repo rate by 25 basis points in the June policy review, as with a muted WPI for most of the year, the focus of the central bank would remain on CPT infaltion. ‘Atanevent in Dethi, former RBIdeputy governor Subir Gokarn said, “The domestic compulsion is clearly in favour of reduc- ing rates. Inflation is lower than expected. Food prices have not responded to weath- er destruction.” To a query, hesaid the mon- soon might bring in food risk but the gov- emment can effectively use its stocks. However, he was not asked a question specifically related to WPI inflation. ‘Anis Chakravarty, senior director, Deloitte in India, said, “We expect the fis- cal and monetary authorities to be vigilant MOVEMENT OF FOOD PRICES Y-0-V% Nov “or! Source: Commerceand industry ministry Dec Jan Feb Mar Apr ‘9951 on food prices as the threat of another bad ‘monsoon season looms large.” That apart, there was deflation in the April data broad category and most segments with- inthese. ‘Take non-food articles, whose prices decreased by 6.16 percent in April, though at a lower rate than the 7.12 per cent in ‘March. All the segments —fibres, oilseeds, minerals — showed deflation. Fuel and power showed deflation at 13.03 percent in April against 12.56 per cent in March. Petrol, diesel, and liquefied petroleum gas saw prices falling in April. Manufactured prod- ucts saw the rate of fall in prices increasing to 0.52 per cent in April against 0.19 per cent in March.YF euks belore President W J Barack Obama's visit [\/ tore peti ia Jenua this yor Indiaquie Uyresalvedoverahun- red pending ax disputes valving twa knovin US software companies Facnglargetax bilshere Thesetle ment, done through arecontiation process allowed under the country’s {nent with te US, wos uch Ish ata Cred saa tothe gov. ‘ermment and the tax affleee who ne fated on Indla'sbehale "Thatsaoneot! ease India’ hand ling of many other tax disputes basedon the advice of tx admin [stration over tho ast year has boon sums The atest n theseres ison Whether fore portilio investors Shouldpaysminimumaltemnatotax (MAT) on profits mode from the sale ‘of Tydmstearesin thee, ConfusionBefore Clarity Initially the government ruled outa respective ormpton ving the Sruction from the tax department ‘would ae ended the stor But con Rising sttementsfollowed when the manietsturned tery "Thefires were dousedonlyafterf- nance minister Arun daitiey annou- heed the setting up of a paneled by ‘Tustioe A P Shad, calrman of the {Lae Commission, to ive is recom ‘endationson thedisputesnd esa ‘Teamwork For Civil Services Separating policymakers and tax administrators is the best way tomake revenue collection sleeker Reforms, Nota Sea of Forms veother so-called ogney issues One eannotpejudge what the Shah par tluilirecommend tan indepen fntreviow means advancing tho Su preme Court's ruling on the same {Souo.andthatweleome. "Tho tax department, empoworod to give elreuars, has vowed not to ‘bound por investors to recovar pastduee But thehaphavard hand ‘go theepisoderefectsthesorry st. aloof alaisof India's taxadamnist faion In another instance of shod Ay policymaking the tax deartine ‘nt came out with complex income ‘creturn ormsanywitdresr them ster protests So, th case to reform and professionals Inia’ tx adi Inistation compelling. Public finance experts — inclu ‘neaja Chelan who steered the Tax ‘Reforms Cornmittesof 19192 anda decade ater: Vay Kelkarin his task forcereports— offered soundactice fo successive governments Last “Mag. the Tax Administration Refor ‘ms Commission (Tar) ey Part ‘uarath Shome,lsoaveathick re Dort suggesting ways o overtaul In (tars taxadminieration But there's lie ation onthe ground. “igh pool tax spate with mu national corporations, Vodafone and Cairn nergy areyot obo resol ‘el Tavestors complain thatthe tax ogimeis arbitrary and to tax dom ands havo turned sitfulenodgh to ‘eealled terrorism Dieringjudic al interpretations and jel dela ‘state only aed otek woes ‘Many theTarv'ssuggestionson Aispute management make sense. ‘The government should write clear aswellasprciselawsand hetaxad ‘ministration must offer quick zie lance, especially asransactionshave ‘comme complex in rap gi. alisingesonoms. ‘An overhaul of the tax adminis Inthe US, theres clear separation of powers. Policymaking isdone only by the treasury, while the USIRS, or tax administrators, enforce the law. ‘Wanted: new paperwork etic tration brooks no delay There are ‘many motels to pick from. Count essuctasHiong kong. chinaand Sin ‘apore have oversiht boards, with experis fromthe private sector tov (eee theta adminststion An Ast ‘anDevelopment Bank paper on com parative alysis of tax dministe ‘lon in Asia apa the Paciicsays tas mol anbaners taxpayer rights respective of whather the Fovenue pds re ated othe sy thane not Divideand Rule ‘Similar the Tare suggests ferningeouneltooverseeindia stro ‘evente boards and ax counel to ‘bringsynergy in txpoliciesandleg ‘sation between the two fx areas. ‘Atte same time, wants the reve. ‘nue secretary's post bbe abolished Issue ebop nd change prmatic? ‘Anddoable? Kelkar’s sugmsstion to create a Chinese wall betveen policymakers fand tax administrators looks [ar ‘ore pragmatic ant doable even, ‘ow The tv key policymaking divi Song, tax planning and leasaton, andthe axrescarchunit.mustboht ‘ed off from thelr respective boxrds ‘and rely brousht under the dep- seimentot revenue “Theboaraseanfocuson tax ole tion and enforeng ho Le witout sdabbling in poles Take Singapore ‘The tax aeney Ban Independent ‘ody listed to to ance minis ‘reli India, the tax administration, ‘oni ils vedo vil romaine Artie government nthe, theres clear separa ‘ot powers betwaun poleymaass Sto at administrator The nen tRevenve Services (RS) sabes ‘tthe Departinont of he Treasurs Fiynbingiodose ony thet sury while the US RS, o taxa. histralors enforce the law The mo lial al the move sae India ‘ow fosvoidany confictof interest “Thecountrysarchale moome ax law shoul be replaced ty a imple ‘ove wit in plan lsh PC mbaram took oof ert owt ‘Dimer TasesCoce Hiseuecssor ‘Should not abandon tho govern ment wantstoprovide investors {int and predictable 1 wil also ‘spare taxmen rom stumbling onto thewrongsidoot revenue