Tag Archives: breaking news

India-US Trade: Reciprocal Tariff Not Yet Imposed

The Minister of State for Commerce and Industry, Jitin Prasada has said in the Lok Sabha that the United States under the Trump administration has not yet imposed reciprocal tariffs and that both countries were planning to negotiate a trade agreement, focussing on increased market access, reduction of import duties and removing non-tariff barriers.

In a written reply to the Lok Sabha, the Minister said, “Both countries plan to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement. Both countries would focus on increasing market access, reducing tariff and non-tariff barriers, and enhancing supply chain integration.”

Confirming the same, the Commerce Secretary Sunil Barthwal informed the Parliamentary Standing Committee on External Affairs that negotiations between the two nations are still on and no agreement on trade tariffs has been reached so far. Barthwal briefed the committee, headed by Congress MP Shashi Tharoor, and said that bilateral trade agreement talks between the two nations are still on.

When members of the committee asked why India was not raising its voice against tariffs, as done by Canada and Mexico, he said the two were not comparable as the US had security concerns and border immigration issues with them.

It is reported that the Commerce Secretary assured the committee that India will sign a “mutually beneficial agreement”. He said India will protect any industry which is crucial to its domestic economy, saying that developing countries cannot lower their tariffs on everything.

It must be mentioned here that soon after Donald Trump took charge as President of the US, the US government issued Memorandum on Reciprocal Trade and Tariffs, wherein the Secretary of Commerce and United States Trade Representative were to take necessary actions to investigate harm to America from any non-reciprocal trade arrangements adopted by trading partners and provide a report with detailed proposed remedies for each trading partner.

Prasada also said that India continues to engage with the US to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner. “This is an ongoing exercise and Indian exporters are working towards diversifying trade baskets and export destinations.”

In 2023-24, India exported engineering goods worth USD 17.62 billion. The other major goods included electronics (USD 10 billion), gems and jewellery (USD 9.9 billion), petroleum products (USD 5.83 billion), textiles (USD 4.7 billion), marine products (USD 2.5 billion). During 2021-24, America was India’s largest trading partner. The US is one of the few countries with which India has a trade surplus. Trump had said, “India charges us massive tariffs, massive you can’t even sell anything in India. It’s almost… it is restrictive. You know, we do very little business inside. They have agreed, by the way. They want to cut their tariffs way down now because somebody’s finally exposing them for what they have done.”

Radico Khaitan, eyeing ₹500 crore from premium brands

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Radico Khaitan expects sales of ₹500 crore from its luxury brands in the next fiscal, according to its Managing Director Abhishek Khaitan. The premium brands are the famous Indian single malt ‘Rampur’ and the artisanal gin Jaisalmer Indian craft gin. The company has plans to add to more brands in the next fiscal.

The company has been experiencing robust sales and expects 8 to 9% growth in volumes and by 12 to 15% in terms of value. The prestige and above segments have been registering double digit growth and the company expects to close in the same range of about 15%.

Radico Khaitan’s luxury portfolio consists of Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Sangam World Malt and Spirit of Victory 1999 Pure Malt. “For the first time in Q3 (December quarter) we achieved a turnover of ₹100 crore (from premium) and for the nine months of FY’24, we have achieved ₹250 crore (turnover). We are very confident that for FY’26, Radico Khaitan should achieve ₹500 crore of turnover, just for the luxury segment only,” said Khaitan.

Enforcement Directorate Raids on TASMAC, Exposes Over ₹1000 Crore Scam

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The Enforcement Directorate, a central agency, conducted raids for five continuous days from March 6 across the state-owned Tamil Nadu State Marketing Corporation (TASMAC) offices, distilleries and breweries to investigate into purported irregularities in the liquor trade in the state.

The ED has uncovered a liquor scam involving the Excise and Prohibition Minister V. Senthil Balaji and other senior leaders of the ruling DMK party. The ED is alleging that distilleries across the state were inflating expenses and fabricating purchases, particularly through bottle-manufacturing companies, to siphon off around ₹1000 crore into untraceable funds and shell companies.

Balaji termed the allegations false and stated, “I will face this legally. The specific FIR details mentioned in the ED statement are missing. There are no irregularities. They are creating an image as if there are irregularities.”

The ruling DMK government has termed the raids as ‘political vendetta’. The Tamil Nadu Deputy Chief Minister, Udhayanidhi Stalin told media persons that Tamil Nadu has been consistent in raising its voice against the three-language policy, (skewed) devolution of finance and delimitation (based on current population). “Hence the Union government might be using raids by its agencies as a diversionary tactic. They might tell something after the completion of the raids. Let’s wait.”

The ED conducted raids at the distilleries and breweries in Chennai and Coimbatore, at the residence and offices of friends of Excise and Prohibition Minister V. Senthil Balaji at Karur, at the head office of TASMAC at Egmore in Chennai, regional offices and residences of TASMAC managing director S. Visakan IAS, and few other top officials linked to TASMAC.

4,829 outlets

The ED has asked the TASMAC district officers across to gather and collate data about bar licences, purchase and sales indents, licences of breweries and distilleries and other financial records of all the 4,829 TASMAC retail outlets in the state, to be submitted to the ED through the TASMAC managing director’s office.

Last year, the report of the Comptroller and Auditor General (CAG) which was tabled in the Tamil Nadu Assembly, had revealed that outlets of TASMAC did not pay the differential excise duty of close to ₹30.5 crore due to the revision of rates of Indian Made Foreign liquor, even as the MRPs were revised. It also flagged several other issues like cash-based billing, over-charging and lapses in e-procurement system etc. The TASMAC fetches ₹44,000 crore as annual revenue for the government.

According to media reports at least 41 FIRs resisted by the Directorate of Vigilance and Anti-Corruption (DVAC) against the discrepancies in purchase and sales in TASMAC, in the past 15 years, were taken as the basis for the investigation by the ED officials. The investigation was also looking into the bar licences issued through a tender process across the state in 2023. The ED enquired about the details with regard to the selection process for giving out bar licences, details of the bar owners across Tamil Nadu, their political affiliations, MRP violations, bar procedures, liquor procurement, and information on breweries, distilleries, and FL2 (Recreation Clubs) and FL3 (Star hotels) licensees, including their addresses.

The media reports mentioned that raids were also conducted at Kongu Mess, Sakthi Mess and at the residences of the owners of these outlets; but these did not yield any results. The owners of these two restaurants in Karur are said to be friends of Minister Senthil Balaji and have been under the ED scanner for quite some time.

A team of around 35 officers from Kerala, Delhi and Andhra Pradesh conducted the searches simultaneously to assess the financial irregularities in TASMAC. However, DMK sources say that the raids did not yield anything as expected by the agency, and this was a prelude to the upcoming raids and searches in the run up to the 2026 elections. The raids, sources say, were targetted at Balaji who is already on bail in the cash-for-job scam case.

59 dead in Tamil Nadu hooch tragedy

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At least 59 people have died so far and another 156 persons have been hospitalised after consuming illicit liquor in Tamil Nadu’s Kallakurichi district. As per reports, illicit liquor called ‘packet arrack’ was consumed by these people.

The police said bootleggers were selling ‘packet arrack’ and they have been arrested on charges of selling illicit arrack. The Police also seized over 200 litres of ‘packet arrack’. Samples tested at a forensic laboratory in Villupuram were found to have the poisonous methanol. Several people from Kallakurichi and neighbouring areas had consumed illicit arrack sold by bootleggers at Karunapuram. On reaching home, most of them complained of giddiness, headache, vomiting, nausea, stomach pain and irritation in the eyes. They were admitted to hospitals in Kallakurichi, Villupuram, Salem and Puducherry.

Meanwhile, the DMK government headed by Chief Minister, M.K.Stalin has shunted out the District Collector and suspended the Superintendent of Police. The government has ordered a probe by the CB-CID of Tamil Nadu police under the charge of Superintendent of Police Shantharam. As per government reports, seven people including a bootlegger by name K.Govindaraj alias Kannukutti, have been arrested.

The Tamil Nadu government has also announced a judicial inquiry headed by retired judge of Madras high court, Justice B Gokuldas. The National Human Rights Commission has issued notices to the Tamil Nadu Government and the Director General of Police seeking a full report on the tragedy.

Not satisfied with this, the AIADMK has demanded an inquiry by the Central Bureau of Investigation (CBI) and its legislators in the Tamil Nadu Assembly have disturbed the proceedings in Assembly, leading to the Speaker suspending them for a day.

The Madras High Court also had pulled up the Dravida Munnetra Kazhagam (DMK)-led Tamil Nadu government over the tragedy, citing similar incidents in Villupuram and Chengalpattu districts last year. The court demanded to know why such instances were repeatedly occurring in the state. A Division Bench of Justices D Krishnakumar and K Kumaresh Babu was hearing a Public Interest Litigation (PIL) filed by the AIADMK legal wing secretary I S Inbadurai. In his petition, he sought a CBI probe.

The Chief minister MK Stalin who has held several meetings with officials has expressed pain and shock and has announced Rs. 10 lakh as ex gratia to the next of kin, while those hospitalised will receive Rs. 5000. The government will also take care of the educational expenses and hostel fees of the children until the age of 18 of those who have lost either one or both parents in the Kallakurichi hooch tragedy.

Court orders closure of two Tasmac outlets

Meanwhile, the Madurai Bench of the Madras High Court ordered the immediate closure of two Tamil Nadu State Marketing Corporation (Tasmac) outlets on Boothipuram Road near Palanichettipatti. It directed the Theni collector to inquire into the allegation of authorities failing to control the illegal sale of liquor.

A division Bench of Justices R Suresh Kumar and G Arul Murugan, while hearing the PIL petition filed by U Aajik Arabukani from Palanichettipatti, directed the Tasmac manager and the Theni Superintendent of Police to assist the collector in the inquiry and file a report.

The court said that the documents and electronic evidence produced by the petitioner disclosed several irregularities in the functioning of Tasmac shop numbers 8576 and 8516. The court observed that a “cartel” arrangement seems to be going on between the supervisors, staff at the Tasmac shops, bar owners and others in the locality. In spite of filing 17 FIRs with the Palanichettipatti police, no effective action has been taken by Tasmac authorities or the police, which is the reason behind the agony of the residents, observed the court.

The court reprimanded the counsel, who appeared for the Tasmac district manager, one of the respondents in the case, for seeking more time to inquire into the matter. “It is not an isolated incident as it has been going on for the last few months. The first FIR had been registered on January 7, 2024, and 17 FIRs have been registered since then. The manager cannot make lame excuses.” Meanwhile, the state-run liquor retailer Tasmac said 500 retail shops selling alcoholic beverages will be closed down in Tamil Nadu, implementing a Government Order (GO) issued earlier for their closure. Out of the 5,329 retail liquor outlets across the state (as on March 31, 2023), 500 shops would be identified and closed down.

AAP MP Sanjay Singh arrested, the liquor scam dragnet spreads

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ED files chargesheet stating Singh got Rs. 3 crores
AAP claims vendetta for raising Adani issue

The Enforcement Directorate (ED) on October 3 arrested Aam Aadmi Party Rajya Sabha MP Sanjay Singh with regard to the Delhi liquor scam. Sanjay Singh has been remanded to 5-day ED custody by Special Judge M.K.Nagpal. After the former Deputy Chief Minister, Manish Sisodia was arrested, Singh is the next high profile leader to get arrested.

The noose around the leaders of AAP seems to be tightening and the apex court made an observation why the AAP is not a party in the case, since the agencies have been mentioning that AAP has been the beneficiary. The BJP spokesperson Shehzad Poonawala and MP Parvesh Verma alleged that Kejriwal is the “kingpin” behind the “scam” and his role will soon be investigated.

While the onus continues to be on the agencies to prove that these leaders and the party have ‘illegally’ benefitted from the excise policy, the AAP is crying hoarse that it is ‘vendetta’ politics and that ‘no money’ was found by the agencies in any of the raids. However, this time the agencies have put it on record that the AAP MP benefited by Rs. 2 crores.

The ED has told the Rouse Avenue Court that Rs. 2 crore in cash was delivered to Sanjay Singh’s residence. The ED made startling revelations that the cash was given in two tranches to Sanjay Singh and a total of Rs 3 crore was given. This cash delivery was confirmed by Dinesh Arora, an accused-turned-approver and the ED said this was confirmed by the AAP MP himself. Dinesh Arora, it is claimed, was a close aide of Sisodia. And Arora was arrested by the ED under criminal sections of Prevention of Money Laundering Act (PMLA) in a case linked to the liquor scam.

Further consolidating on its evidence, the ED said Dinesh Arora’s chartered accountant had confirmed that the cash was delivered to Singh’s residence and has seized documents that corroborate the same. The ED reportedly conducted searches in 239 locations while seizing documents and phone of Sanjay Singh and told the court that it is examining the documents and other evidence and needed 10-day remand of the AAP leader.

Unlike in Sisodia’s case where the ED has not established any money trail, the ED this time is stating that it has established the trail between the two individuals and the AAP MP was instrumental in formulating the Delhi Excise policy which was revoked, post the scandal. In the charge sheet, the ED stated Arora met Singh at a party in the latter’s restaurant ‘Unplugged Courtyard’ and Singh is said to have asked Arora to generate funds from restaurant-owners for the Aam Aadmi party for the Delhi Assembly elections. He said he gave a cheque of Rs 82 lakh.

The charge sheet further mentioned that Arora in his statement that another accused, Amit Arora, sought help in shifting his liquor shop from Okhla to Pitampura. The ED said Singh was involved in getting this done through the help of Sisodia who in turn got it sorted by the Excise Department. Further Arora claimed that he met the Delhi Chief Minister Arvind Kejriwal once at his residence with Singh while he had spoken to Sisodia five-six times.

“They are just putting false cases. Nothing comes out in the investigation. This is a waste of time for the investigative agencies. The country will not progress by putting false cases on people,” said Kejriwal.

AAP takes to streets

The Kejriwal-led party has gone to the streets stating that the ED was targeting Singh as he has been raising the Adani issue in Parliament and outside. AAP spokesperson Reena Gupta said, “Sanjay Singh kept on raising questions on the issue of Adani and this is why the raids are being conducted at his residence. The Central agencies found nothing earlier and won’t find anything today either. First, they conducted raids at the residence of some journalists yesterday and today, raids conducted at Sanjay Singh’s residence.”

The now scrapped Delhi Excise policy was rolled out in November 2021 for the 2021-22 financial year, marking the exit of the Delhi government from retail sales of alcohol. It allowed private players to bid for licenses. The investigating agencies have alleged that kickbacks were paid to implement the excise policy which was scrapped after Delhi’s lieutenant governor VK Saxena asked for an investigation into alleged irregularities.

Meanwhile, the Supreme Court has questioned both the Central Bureau of Investigation (CBI) and the ED why the AAP has not been named as a beneficiary. The apex court asked how was a case made based on some “pressure groups” seeking policy change and whether bribery was involved. “We understand there was a policy change and everyone will support policies which are good for business. Pressure groups are always there but policy changes without money consideration will not matter. It’s the money part which makes it an offence. If we go to an extent to say that there cannot be any pressure groups, no government can function…Lobbying will always be there. Of course, bribes cannot be accepted,” the SC bench of Justices Sanjiv Khanna and SVN Bhatti said. The Additional Solicitor General argued that the policy was introduced to benefit the wholesalers and increase their share of profit. “Under the old policy, there was no way you can get the kickback and hence, there arose the need for policy change.”

“You have to establish a chain. The money has to flow from the liquor lobby to the person concerned. We agree with you that it’s difficult to establish the chain because everything is done under cover. But that’s where the competence of investigators comes in,” the bench added.

Sisodia was arrested by the CBI on February 26 after the agency alleged that many ineligible vendors were awarded licences by the Delhi government in exchange for bribes. The liquor policy, introduced in November 2022, was withdrawn eight months later amid allegations of corruption. Sisodia has been in custody since then. The ED arrested him in a money laundering case stemming from the CBI FIR on March 9. Sisodia resigned from the Delhi cabinet on February 28.

By R.Chandrakanth