Wednesday, 24 April 2013

IPC SECTION 420

Cheating and dishonestly inducing deli every of property. – Whoever cheats and thereby dishonesty induces the person deceived to deliver any property to any person , or to make, alter or destroy the whole or any part o a valuable security , or anything which is signed or sealed, and which is capable of being converted into a valuable security , shall be punished with imprisonment for either description for a tem which may extend to seven years, and shall also be liable to fine.

CLASSIFICATION OF OFFENCE

Punishment-Imprisonment for 7 years and fine-Cognizable –Non-bailable-Triable by Magistrate of the first class –Compoundable by the person cheated with the permission of the court of Fraudulent Deeds and Disposition of Property

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Tuesday, 23 April 2013

ETF-GOLD INVESTMENT IS BETTER THAN PHISICAL GOLD HOLDING

                     Compulsive shoppers are queuing up outside jewellery shops in large numbers to make the most of the recent fall in gold prices. A shopper who managed to get inside a shop in Mumbai says the store resembled an overcrowded long-distance local train during peak hours. Another shopper complained that the jeweller had taken most of the interesting pieces off the shelves, claiming that everything is sold off to ward off the crowd. Probably, he wants to wait for the prices to rise again, she says ruefully.
There are also stories doing the rounds that jewellers are refusing to buy back gold at the current price, instead insisting on a discounted price. In short, gold is making headlines, but, sadly this time, not for glorious reasons.
                   Just as gold is set to breach the . 25,000-mark after a splendid run that lasted more than a decade, unlike the jubilant shoppers, investors in the yellow metal are a worried lot.For those who were sitting on profits, the tumbling was a rude awakening that the precious metal won’t glitter forever. They also know that it is a “little too late” to sell and get out.
                  As for those who were waiting in the wings for a price correction before investing in gold, they are a bit unnerved by the flood of obituaries for the yellow metal as a safe haven. Naturally, they want to be sure about the prospects of gold before investing in it. The only happy souls, it seems, at the moment are jewellery shoppers.
                ON A FREE FALL The writing was on the wall for some time. The sceptics had been predicting the end of the bull run
in gold, which has been almost uninterrupted for the past few years. However, most conservative investors were dismissive. They had solid reasons: as long as there is chaos all around, gold will continue to glitter, they argued. Look around: the US is hardly out of the woods; Europe crisis shows no signs of abating; and Indian story is almost written off. While these arguments had merit, the metal has lost its sheen.
                      From a record high of . 32,500 per
10 gm in November 2012, the yellow metal has tumbled to . 25,680 on Wednesday. However, after the recent fall there are many voices singing in chorus about the demise of gold. “The confidence in gold has been severely dented given the magnitude and the forcefulness of the recent fall. Fears of a Cyprus gold sale, liquidations in ETFs and unwinding of long positions by institutions in the international markets have contributed to the downfall,” says Kishore Narne, head, commodities, Motilal Oswal Securities. “The prospects of any meaningful recovery in gold remain weak and given the lack of any major triggers in the near term, gold prices are unlikely to reverse the downtrend anytime soon. Short-term pullbacks are entirely possible given the speed at which prices have declined, but we anticipate another 12-15% fall from here on domestic markets before the end of FY14,” he adds.
 

          BUY, HOLD OR SELL?
                      Are you about to hit the panic (or sell) button because of the collective pessimism all around you? Well, you should try to sooth the nerves and hold on to your investments for a while, say experts. “Selling gold at these levels is not advisable at all. Hold on to your current gold investments. Remember, gold is akin to currency. In the long-term, it will move up,” says Devendra Nevgi, founder and partner, Delta Global Partners.
Even if you don’t share the optimism, you have no choice but to hold on to your investments — especially if you bought gold when the prices were hovering over . 30,000. “Retail investors wrongly thought that gold would help them get extraordinary returns. They should consider gold simply as part of the overall portfolio. They should not dump their investments in gold now,” adds Suresh Sadagopan, certified financial planner, Ladder7 Financial Advisories.
As for those waiting in the wings, many experts believe that they should consider investing in gold in a piecemeal manner now. “Retail investors should look at meeting
30-50% of their intended investment target for the year right away,” says Nevgi. The remaining investment should be staggered over a period of a year, he adds.
However, not everyone is recommending increased purchase of gold now. “Currently, we are not recommending additions to a client’s portfolio despite weaker prices. At the moment we have a contrarian view and recommend trimming at price gains. As inflation concerns subside, gold as a ‘hedge’ is likely to subside,” says Vishal Kapoor, general manager, wealth management, South Asia, Standard Chartered Bank.
This apart, you should get in now only if you can stomach a lot of volatility in the short-term. “I think gold prices are very close to the bottom now. Investors should not try to time the market and instead invest systematically through gold ETFs or demat gold on the exchanges like NSEL. This will help them average out the cost of acquisition. They should also avoid leveraged buying. The volatility in gold prices is very high and even a movement of $40-50 could adversely affect your portfolio’s value,” says Priti Gupta, director, commodities and currencies, Anand Rathi Financial Services.
                You could consider monthly investments to even out fluctuations. Also, stick to your allocation. “They should keep their total exposure to gold in the 5-7% range and not try to time the market,” .                 Remember the basics: gold ETFs are always better than physical gold for investment purpose. Apart from better liquidity, it also eliminates the making charges and cost and risk of safe keeping. The pricing structure is also transparent. Other investment choices are gold coins and bars.

Friday, 12 April 2013

PSU BANK ARE STRUGGLING


PSU Banks Fret as MF Debt Assets Outpace Fixed Deposits

MFs garner . 1.9 lakh cr between Apr ’12 & Feb ’13 even as banks struggle to maintain CASA ratios


    While banks are finding it tough to attract customers for deposits, the mutual fund industry has collected about . 1.90 lakh crore between April 2012 and February 2013 from corporates and HNIs (high net worth individuals) , taking the total asset size of the debt segment to nearly . 5 lakh crore, according to Morningstar, a USbased global fund tracker.
Worried by this development, some bankers of state-run banks have met finance ministry and Reserve Bank of India officials, expressing their concerns over the growing debt asset size of mutual funds, said a person close to the industry who didn’t want to be identified.
“Mutual funds are a competing source which has been one of the reasons for slower deposit growth last year,” said BK Batra, executive director, IDBI Bank. “But it is something here to stay and one has to deal with it,” he added.
Banks are facing stiff challenge to maintain their CASA (current and savings account) ratio, as mutual
funds are delivering higher returns on debt products. Bank deposits grew at a sluggish 13.1% year-onyear basis till March against 14.4% a year-ago.
“I think mutual funds don’t pose a danger to banks’ deposit mobilisation so far because their total asset size is not huge,” said Sanjay Arya, executive director, United Bank of India. “We are also expanding in rural and unbanked areas, where their reach is limited. So, as rural incomes grow, banks will benefit from that. The last reason is there’s certainty of returns with bank deposits, which is not the case with mutual funds,” he added.
Corporates and HNIs are availing of mutual fund debt schemes in an elaborate way to park their short-term surplus money on hopes of a rally in debt market as interest rates are seen headed southwards.
“Most corporates and HNIs are investing in shorter-duration debt schemes on expectations of a rally in debt market as interest rates are expected to ease going, forward,” said S Naren, chief investment officer, ICICI Prudential. “The Reserve Bank of India has cut interest rates by 50 ba
sis points in the last three months; we expect more rate cuts in future.”
The liquid, or short-term funds, are very popular with corporates and HNIs, as average returns are 50-basis points higher than bank fixed deposits, besides there’s greater flexibility in entering and exiting mutual fund schemes than FDs .
“Corporates and HNIs are finding the current investment environment more suitable for FMPs (fixed maturity plans) than FDs due to income tax and indexation benefits,” said Dhruva Chatterji, senior re
search analyst at Morningstar. “Last year, we have seen significant flows to debt mutual fund products, and over the past couple of months, FMPs offered from mutual funds have seen good subscription.”
“Corporates and HNIs are investing in income and money market schemes since there’s a tax arbitrarge over fixed deposits. The banks deduct TDS when money is withdrawn, whereas in mutual funds, investors are relieved of tax hassle,” said Jimmy Patel, CEO, Quantum Asset Management.

Thursday, 4 April 2013

Memorandum submitted to Secretary, Department of Posts, by Postal Joint Council of Action (PJCA) on 01.04.2013

                    The meeting of the Postal Joint Council of Action (PJCA) comprising Secretary General and General Secretaries of the National Federation of Postal Employees (NFPE) and Federation of National Postal Organisations (FNPO) has reviewed the situation prevailing in the Department of Posts, regarding settlement of the following long pending demands of the staff side. The meeting viewed with grave concern the inordinate delay in implementing the assurances given to the staff side both during the discussion on strike charter of demands and also in the JCM Departmental Council meetings, causing large scale resentment among the Postal and RMS employees including Gramin Dak Sevaks and casual, Part time and contingent employees.
                     As the new Secretary, Department of Posts, has taken over charge only recently, the JCA decided to bring all the important/pending cases once again to the notice of the Secretary, Posts for early settlement, before resorting to agitational programmes. Accordingly we submit the following long pending cases for your immediate intervention and early favorable action.
1.      Issues relating to Gramin Dak Sevaks
The Following specific assurances given by Secretary, Department of Posts, are yet to be implemented.
(a)   Enhancement of Bonus ceiling – In the matter of enhancement of Bonus ceiling to 3500/- of Gramin Dak Sevaks, it was assured that another attempt will be made to get the approval of the Finance Ministry. It was informed that the file has already been submitted to Finance Ministry with the favourable recommendations of the Postal Board and Minster, Communications.
(b)   Revision of Cash handling norms
On the issue of withdrawal of upward change in cash handling norms etc, it was assured that the entire issue will be re-examined. A DDG level committee was also constituted. Minster of States for Communications has also assured the staff side that needful will be done in this case.
(c)    Ensuring no reduction of TRCA under any circumstances
It was assured by Minster of State for Communications that orders for full protection of TRCA will be issued. But, in the orders issued by the Directorate, protection is given for one year only and thereafter if workload is not increased TRCA will be reduced without any protection. As per the earlier orders protection was given up to the maximum of the lower TRCA even if workload is reduced. As per the new order after one year there will be no protection at all. When workload is reduced due to circumstances beyond the Control of the GDS, reducing the TRCA is quite unjustified and inhuman.
(d)   Removal of minimum 50 points conditions for GDS compassionate appointment:
(e)   Redeployment of mailman posts in new areas
(f)     Review of cash conveyance allowance – Monthly ceiling of Rs. 50/- to be removed.
(g)   Introduction of Health Scheme.
(h)   Norms for RPLI
(i)     Providing norms for cash remittance from BO to AO & Vice Versa
In the minutes dated 12.07.2010 it was informed that the issues of the Health Scheme has been taken up with the nodal Ministries still it is pending.
2.      Immediate finalization of Cadre Restructuring:
After the marathon discussion on the problems put forth in the strike charter on 10.01.2012 & 12.01.2012, Secretary, Department of Posts, has assured both orally and also in the minutes, inter alia;
“As recorded in the minutes of the meeting held on 27.12.2011, the proposal is under consideration of a committee under the Chairpersonship of DDG (P). The Staff side expressed their concern about the undue delay in fianalisation of the proposal on which the Secretary Posts, desired finalization of this process by 31st March 2012. It was assured that the timelines would be adhered to”. As regards restructuring of Postal Accounts officials, it was informed that the proposal was cleared by the JS&FA and stands referred to the Secretary (Posts). It was also decided to have a separate Committee under the Chairpersonship of Ms. Sandhya Rani, PMG (BD) Andhra Pradesh Circle to consider Cadre Restructuring of MMS staff. The Committee will submit its report within three months from the date of formation.”
Again in the Minutes of the discussion held with the staff side on 21.052012, it is further assured as follows:
“It was decided to formulate a proposal by 30th June 2012 for further examination in consultation with the nodal Ministries. Regarding cadre restricting of Postal Accounts it was assured that the matter will be pursued further with Postal Accounts wing and Establishment division and the PJCA will be kept appraised of the progress in the regard.”
Again during the JCM, Departmental Council standing Committee meeting held on 18.12.2012 and JCM (DC) Meeting held on 28.12.2012 it was assured as follows:
“It was informed that the report of the committee is under consideration. Proposal will be formulated by the Department. However, one round of talks with JCM members will be held before the proposal is firmed up.”
At one stage, the staff side has made it clear that if the department goes on dragging the cadre restructuring issue indefinitely, the staff side will be forced to non-cooperate with the IT Modernisation project.
It was repeatedly assured that the cadre restructuring will not be linked with the IT Modernisation Project. But still the proposals are not finalized. No meeting of the Cadre Restructuring Committee by the Postal Board was held during the last one year. The undue and unwarranted delay is causing concern and also strong resentment among the employees.
3.      Revision of wages of casual labourers and their absorption
In the minutes of the discussion held with the staff side on 10.01.2012 & 123.01.2012, the Secretary (Posts) has assured as follows:
“The Staff side was appraised that a Committee had been constituted under the Chairpersonship of CPMG Assam Circle to look into the issues pertaining to Casual Labourers and it is likely to submit its report shortly. The Staff side expressed its concern over the delay in the decision. Regarding the union’s request for revised minimum wages w.e.f 01.01.2006, the matter will be examined on priority.”
Again in the minutes of the discussion held on 21.05.2012, it was further assured that____
“A Comprehensive proposal on the matter of Casual labourers will be formulated by 30th June 2012.”
In spite of these repeated assurances the payment of pro-rate wages to the law-paid casual labourers w.e.f 01.01.2006 has not taken place causing inordinate delay in payment of minimum wages to those poor employees.
4.      Issuing orders on the items finalized by the Postmen Committee and also follow up action on certain items to be referred to work study Unit.
(a)   Follow up action on certain in items of the Postmen Committee constituted by the Postal Board, is yet to be completed, i.e; maximum beat length, unscientific resorting to single Postmen beats, Double duty, correction in the definition of the Congested area etc.
(b)   In spite of Clear orders issued by the Directorate for filling up of Postmen & MTS Vacancies for the year 2009, 2010, 2011 & 2012, in certain circles (Eg. Andhra Pradesh) the examination for promotion to Postmen and MTS is not yet completed.
5.      Abnormal delay in notifying HSG-I Rectt. Rules
The finalization of revised HSG-I Recruitment Rules is being delayed on one pretext or the other. This is pending over five years. 100% of HSG I posts are lying vacant and are being managed by officiating arrangements without any financial benefits. Due to the delay in finalizing HSG I Recruitment Rules, Carving out of Postmaster Grade III is also delayed. It is most unfortunate that orders have been issued by the Directorate not to fill up the HSG I vacancies as per the old Recruitment rules. At least this would have been caused to fill up the vacancies.
It has defeated the very purpose of matching savings offered to the extent of 680 PA posts for availing HSG I Promotion and it is highly deplorable. Necessary action may please be taken to finalise the HSG-I Recruitment Rules or at least to fill all the vacant posts forthwith besides carving out of Postmaster Grade III Posts as per the existing HSG I Recruitment Rules.
6.         Abnormal delay in filling up of vacant LSG, HSG II and HSG-I vacancies due to non-holding of DPCs in many circles
In many circles, the regular DPC to LSG has not been convened. Many LSG Posts are being kept vacant resultantly causing a heavy shortage in PA cadre due to their officiating. Further the delay caused non filling up of HSG-II Post due to inadequacies in the eligible candidates in LSG cadre. In many circles, HSG-II DPC has also not been convened and many of the HSG-II Posts could not be filled up on a regular basis due to the officiating of the incumbents in the vacant HSG I Posts.
In nutshell all the higher posts are being managed only with the officiating or adhoc arrangements causing non filling up of basic PA posts and denying and depriving the due promotional chances to the eligible candidates .
It is therefore requested to cause appropriate orders to convene DPC and fill up all the vacant LSG & HSG II posts immediately by prescribing time schedule
7.      Problems of Postmaster Cadre Officials
(i)      Allowing Postmaster Cadre officials to appear for IP and PSS Group B examination.
(ii)     Orders permitting the Postmaster Cadre official to officiate in HSG-I vacancies and earmarked Postmaster Grade III Posts.
(iii)    Allow PO & RMS Accounts cadre official to opt for Postmasters cadre
(iv)    Filling up the Postmaster Grade-III posts by granting promotion to Grade-II officials and also by option from HSG-I officials after filling up all HSG-I posts
(v)     Filing up of all vacant Grade II and Grade III posts promoting the Postmaster cadre official relaxing the minimum service condition.
(vi)    Filling up 100% Senior Postmaster/Chief Postmaster posts which are earmarked for Postmaster cadre by Postmaster Cadre officials alone declaring it as a hierarchical promotion cadre of Postmaster Cadre.
(vii)   Delay in holding LSG, HSG II and HSG – I DPCs and thereby denying the chance for giving option to Postmaster Grade – I, II & III to eligible officials.
(viii) Maintenance of up to date separate gradation list for PM Cadre officials.
In the minutes of the discussion held on 21.05.2012 the Secretary (Posts) has assured as follows:
“The issue was discussed at length and it was decided to review it after sometime keeping in view the merits and demerits of the proposal as well as the response of the officials for Postmasters Cadre.”
The minutes did not reflect the real spirit of discussion as it was assured to consider favourably the above items after long discussion. However, it is high time to review the above cases and settle favourably. The entire Postmaster Cadre officials are totally frustrated and disappointed due to the negative attitude of the administration towards them.
8.      Problems of System Administrators
In the minutes of the Departmental Council JCM Standing Committee dated 02.02.2012 (communicated in letter dated 06.06.2012) for the 15 items pertaining to system Administrators including creation of separate cadre, it is furnished as follows:
“The issue is under the consideration of the cadre Restructuring Committee constituted under the chairmanship of DDG (P) vide Department’s office memo no. 01/04/2010-Sr dated 05.05.2011”
Finalization of the proposal by the Cadre Restructuring Committee is being delayed indefinitely. Recently, during the demonstration of IT Modernisation Project, the Staff side has repeatedly requested the Member (Technology) to create a separate cadre and absorb all the existing SAs as a onetime measure in the new cadre. Unfortunately no commitment was given regarding the creation of new cadre, except the assurance that the services of the existing system Administrators will be utilized in future also. It is high time to end the present uncertainty by creating a separate cadre for System Administrators.
9.      Implementation of speed Post hubs and L1, L2 System
The High Power Committee appointed to discuss the issues under the Chairpersonship of then Secretary, Department of Posts assured the following before implementation of MNOP proposals.
(i) There will be no shifting of staff from L1 office to L2 office vice versa for three years.
(ii) Irregular or wrong identification of L1 office will be changed after discussion with the staff side.
But to our dismay both the promises were not kept. There is a complete violation and deviation of assurances. Further, eventhough directorate has issued instruction to the Chief PMGs regarding change of administrative jurisdiction of speed post hubs, certain Chief PMGs have not yet implemented it and still some of the speed post hubs are continuing under the administrative jurisdiction of postal superintendent.
Further, CRC & Speed post norms have been finalized without any consultation with staff side. The impracticable norms have been imposed upon violating the earlier decision and agreements on the subject.
10.  MACP Related issues
The implementation of the Jodhpur CAT Judgment; i.e. non-counting of promotions acquired from one cadre to other through examination for MACP, Granting of MACP counting the total service rendered in each cadre etc  has not been implemented resulting deprival of dues to the senior most promotees in the Department of Posts. This may kindly be considered.
11.  Problems of APM Accounts/Accountants
The following demands in respect of PO & RMS Accountants have not been considered yet causing resentment and displeasure amidst the qualified hands.
(i)      Proportionate distribution of APM Accounts posts among LSG, HSG II and HSG-I
(ii)     Counting special allowance for pay fixation benefits to PO & RMS Accountants on promotion. Implementation of Karnataka High court order not only for a specific period but also till the withdrawal of the TBOP/BCR schemes in true spirit. The special allowance should be taken for pay fixation up to 31.08.2008 for TBOP/BCR officials.
(iii)    Date of passing Accountants exam may be taken as the criteria for counting seniority for promotion, since no amendment has so far been issued to the statutory rules. Further the earlier passing of examination will have no relevance in future.
12.  Filling up of all vacant posts
Even though Government of India has lifted ban on filling up of posts from 2009 onwards, and the Directorate has given repeated instructions to fill up all direct recruitment as well as promotional quota of vacancies up to 2012, in many circles posts are remaining unfilled. Similarly in Postal Accounts much delay in taking place in filling up of posts due to delay in finalization of the Recruitment process by staff selection commission. Action may be taken to fill up all vacant posts from 2009 onwards on top priority basis as the staff are reeling under the pressure of workload which in turn affects the efficiency of the services rendered by the Department of posts.
In conclusion, we hope that all the above issues will be given top most priority and the Hon’ble Secretary, Department of Posts, shall come forward for a negotiated settlement with the staff side in a time bound manner.
13.  Non settlement of agreed items placed in the Departmental Council (JCM)
Most of the issues agreed in the last Departmental Council meeting held on 28.12.2012 have not been processed further. Many of them remain as it is. There is no serious action taken in mitigating the issues put forth in the departmental council meeting.
Awaiting early action
Yours faithfully,
                                                                                               
SD/-                                                                                                                 SD/-
(D. Theagarajan)                                                                                             (M. Krishnan)
Secretary General, FNPO                                                                              Secretary General, NFPE