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LATEST NEWS UPDATES | The Mamata Banerjee story is over...-Aditi Phadnis </title>
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-The Business Standard
A trail of unfulfilled promises follow her in rural and urban Bengal
The furious letter-writing since 2010 about the chit fund industry in West Bengal suggests that everyone knew the industry was going to implode.
Bengal has one of the..."/>
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-The Business Standard
A trail of unfulfilled promises follow her in rural and urban Bengal
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Bengal has one of the..." />
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<h1 class="cat-box-title">The Mamata Banerjee story is over...-Aditi Phadnis</h1>
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Published on</span><span class="text-date"> Apr 30, 2013</span>
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<div align="justify">-The Business Standard</div><p align="justify"><br /><em>A trail of unfulfilled promises follow her in rural and urban Bengal</em></p><p align="justify">The furious letter-writing since 2010 about the chit fund industry in West Bengal suggests that everyone knew the industry was going to implode.</p><p align="justify">Bengal has one of the highest rates in small savings, Trinamool Congress (TMC) leader Somen Mitra wrote to the prime minister in 2011. The state buys the highest number of new life insurance policies, and accounts for a high contribution to mutual fund subscriptions. Much of this pool of surplus cash is finding its way into the hands of chit funds that offer "simply impossible" interest rates. Could the prime minister please look into the matter, asked Mitra. The leader took a personal risk in flagging the issue since many of those who ran the chit funds - as we know now - are his colleagues. He said as much in his letter. "These chit funds do prosper with patronage of politicians who have even helped some chit fund owners to enter the illustrious House of Parliament."</p><p align="justify">Everyone knew who these owners were. Nothing happened.</p><p align="justify">In December 2012, Reserve Bank of India (RBI) Governor D Subbarao publicly told the state government that it needed to be vigilant on the operations of chit fund companies. "Money circulation schemes are banned under the Prize Chit and Money Circulation Schemes (Banning) Act, 1978, and the respective state governments have the power to take action against people involved in such schemes," he said, asking the state government to intervene.</p><p align="justify">No one in the state did anything.</p><p align="justify">In January 2013, the RBI wrote letters to the economic offences wing of the West Bengal government. It forwarded letters written to it by investors in rural Bengal, complaining they had been duped by chit fund companies.</p><p align="justify">There was no reply.</p><p align="justify">In January 2013, former West Bengal Finance Minister Asim Dasgupta held a press conference, where he warned that the chit fund asset bubble, built up since 2000, was about to burst: reports were flooding in complaints that chit fund companies have been unable to repay investors.</p><p align="justify">Still, no one did anything, except TMC Member of Parliament Kunal Ghosh who got a salary of Rs 16 lakh a month from the Saradha group and who predictably defended the industry. In an interview, he said not all chit funds were bad. "Chit fund companies employ thousands of people [he put the employment figure in cross-held media companies alone to between 4,000 and 5,000]. If chit funds are shut down, all these jobs will be lost," he warned.</p><p align="justify">Mamata Banerjee has defended Ghosh. She says everyone should wait until the results of the enquiry are out.</p><p align="justify">Can there be anything more obscene than this? A trail of promises made and not kept follows Banerjee.</p><p align="justify">The people of Singur whose land was taken away by the Left Front government but who refused to accept compensation cheques during the process of land acquisition for the Tata factory were at the heart of the movement that brought Banerjee to power. They are still to get their land back. They've got no compensation either. It's a wonder Banerjee has the courage to look them in the eye.</p><p align="justify">In December 2011, 172 people died after drinking illicit liquor in Bengal. The state government offered Rs 2 lakh as compensation to the families of the dead. They are yet to get this money. In 2012, she promised 10 million jobs would be created in the state. There is no evidence of this either.</p><p align="justify">Instead, political violence in Bengal is rising. What else do you expect? In many areas, the local TMC functionary doubled up as an agent of chit fund companies like Saradha. This was a unique new take on extortion. The Communist Party of India (Marxist) activists opposed this. Clashes have been breaking out all over Bengal, described as political but, in fact, between one set of people who have suddenly become prosperous and another who are resentful at having to fund this.</p><p align="justify">Banerjee is now on a collision course with the courts for postponing the panchayat elections. The courts - one hopes in a rhetorical intervention - have asked Banerjee why, if the state had no money to hold elections, couldn't it consider taxing people to raise funds.</p><p align="justify">Banerjee is holding off elections because they will confirm not just her rising unpopularity in rural areas, but also create a political fulcrum for forces in her own party who are questioning her leadership. She has already lost urban Bengal. Now, rapidly, even in rural Bengal, the patience of people is running out. Her story is over.</p>
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<br><a href="http://www.business-standard.com/article/opinion/the-mamata-banerjee-story-is-over-113042600956_1.html" class="re" target="_blank">The Business Standard, 26 April, 2013, http://www.business-standard.com/article/opinion/the-mamata-banerjee-story-is-over-113042600956_1.html</a><div class="clear"></div>
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<h1 class="cat-box-title">The Mamata Banerjee story is over...-Aditi Phadnis</h1>
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Published on</span><span class="text-date"> Apr 30, 2013</span>
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<div align="justify">-The Business Standard</div><p align="justify"><br /><em>A trail of unfulfilled promises follow her in rural and urban Bengal</em></p><p align="justify">The furious letter-writing since 2010 about the chit fund industry in West Bengal suggests that everyone knew the industry was going to implode.</p><p align="justify">Bengal has one of the highest rates in small savings, Trinamool Congress (TMC) leader Somen Mitra wrote to the prime minister in 2011. The state buys the highest number of new life insurance policies, and accounts for a high contribution to mutual fund subscriptions. Much of this pool of surplus cash is finding its way into the hands of chit funds that offer "simply impossible" interest rates. Could the prime minister please look into the matter, asked Mitra. The leader took a personal risk in flagging the issue since many of those who ran the chit funds - as we know now - are his colleagues. He said as much in his letter. "These chit funds do prosper with patronage of politicians who have even helped some chit fund owners to enter the illustrious House of Parliament."</p><p align="justify">Everyone knew who these owners were. Nothing happened.</p><p align="justify">In December 2012, Reserve Bank of India (RBI) Governor D Subbarao publicly told the state government that it needed to be vigilant on the operations of chit fund companies. "Money circulation schemes are banned under the Prize Chit and Money Circulation Schemes (Banning) Act, 1978, and the respective state governments have the power to take action against people involved in such schemes," he said, asking the state government to intervene.</p><p align="justify">No one in the state did anything.</p><p align="justify">In January 2013, the RBI wrote letters to the economic offences wing of the West Bengal government. It forwarded letters written to it by investors in rural Bengal, complaining they had been duped by chit fund companies.</p><p align="justify">There was no reply.</p><p align="justify">In January 2013, former West Bengal Finance Minister Asim Dasgupta held a press conference, where he warned that the chit fund asset bubble, built up since 2000, was about to burst: reports were flooding in complaints that chit fund companies have been unable to repay investors.</p><p align="justify">Still, no one did anything, except TMC Member of Parliament Kunal Ghosh who got a salary of Rs 16 lakh a month from the Saradha group and who predictably defended the industry. In an interview, he said not all chit funds were bad. "Chit fund companies employ thousands of people [he put the employment figure in cross-held media companies alone to between 4,000 and 5,000]. If chit funds are shut down, all these jobs will be lost," he warned.</p><p align="justify">Mamata Banerjee has defended Ghosh. She says everyone should wait until the results of the enquiry are out.</p><p align="justify">Can there be anything more obscene than this? A trail of promises made and not kept follows Banerjee.</p><p align="justify">The people of Singur whose land was taken away by the Left Front government but who refused to accept compensation cheques during the process of land acquisition for the Tata factory were at the heart of the movement that brought Banerjee to power. They are still to get their land back. They've got no compensation either. It's a wonder Banerjee has the courage to look them in the eye.</p><p align="justify">In December 2011, 172 people died after drinking illicit liquor in Bengal. The state government offered Rs 2 lakh as compensation to the families of the dead. They are yet to get this money. In 2012, she promised 10 million jobs would be created in the state. There is no evidence of this either.</p><p align="justify">Instead, political violence in Bengal is rising. What else do you expect? In many areas, the local TMC functionary doubled up as an agent of chit fund companies like Saradha. This was a unique new take on extortion. The Communist Party of India (Marxist) activists opposed this. Clashes have been breaking out all over Bengal, described as political but, in fact, between one set of people who have suddenly become prosperous and another who are resentful at having to fund this.</p><p align="justify">Banerjee is now on a collision course with the courts for postponing the panchayat elections. The courts - one hopes in a rhetorical intervention - have asked Banerjee why, if the state had no money to hold elections, couldn't it consider taxing people to raise funds.</p><p align="justify">Banerjee is holding off elections because they will confirm not just her rising unpopularity in rural areas, but also create a political fulcrum for forces in her own party who are questioning her leadership. She has already lost urban Bengal. Now, rapidly, even in rural Bengal, the patience of people is running out. Her story is over.</p>
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<br><a href="http://www.business-standard.com/article/opinion/the-mamata-banerjee-story-is-over-113042600956_1.html" class="re" target="_blank">The Business Standard, 26 April, 2013, http://www.business-standard.com/article/opinion/the-mamata-banerjee-story-is-over-113042600956_1.html</a><div class="clear"></div>
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LATEST NEWS UPDATES | The Mamata Banerjee story is over...-Aditi Phadnis </title>
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<h1 class="cat-box-title">The Mamata Banerjee story is over...-Aditi Phadnis</h1>
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Published on</span><span class="text-date"> Apr 30, 2013</span>
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<div align="justify">-The Business Standard</div><p align="justify"><br /><em>A trail of unfulfilled promises follow her in rural and urban Bengal</em></p><p align="justify">The furious letter-writing since 2010 about the chit fund industry in West Bengal suggests that everyone knew the industry was going to implode.</p><p align="justify">Bengal has one of the highest rates in small savings, Trinamool Congress (TMC) leader Somen Mitra wrote to the prime minister in 2011. The state buys the highest number of new life insurance policies, and accounts for a high contribution to mutual fund subscriptions. Much of this pool of surplus cash is finding its way into the hands of chit funds that offer "simply impossible" interest rates. Could the prime minister please look into the matter, asked Mitra. The leader took a personal risk in flagging the issue since many of those who ran the chit funds - as we know now - are his colleagues. He said as much in his letter. "These chit funds do prosper with patronage of politicians who have even helped some chit fund owners to enter the illustrious House of Parliament."</p><p align="justify">Everyone knew who these owners were. Nothing happened.</p><p align="justify">In December 2012, Reserve Bank of India (RBI) Governor D Subbarao publicly told the state government that it needed to be vigilant on the operations of chit fund companies. "Money circulation schemes are banned under the Prize Chit and Money Circulation Schemes (Banning) Act, 1978, and the respective state governments have the power to take action against people involved in such schemes," he said, asking the state government to intervene.</p><p align="justify">No one in the state did anything.</p><p align="justify">In January 2013, the RBI wrote letters to the economic offences wing of the West Bengal government. It forwarded letters written to it by investors in rural Bengal, complaining they had been duped by chit fund companies.</p><p align="justify">There was no reply.</p><p align="justify">In January 2013, former West Bengal Finance Minister Asim Dasgupta held a press conference, where he warned that the chit fund asset bubble, built up since 2000, was about to burst: reports were flooding in complaints that chit fund companies have been unable to repay investors.</p><p align="justify">Still, no one did anything, except TMC Member of Parliament Kunal Ghosh who got a salary of Rs 16 lakh a month from the Saradha group and who predictably defended the industry. In an interview, he said not all chit funds were bad. "Chit fund companies employ thousands of people [he put the employment figure in cross-held media companies alone to between 4,000 and 5,000]. If chit funds are shut down, all these jobs will be lost," he warned.</p><p align="justify">Mamata Banerjee has defended Ghosh. She says everyone should wait until the results of the enquiry are out.</p><p align="justify">Can there be anything more obscene than this? A trail of promises made and not kept follows Banerjee.</p><p align="justify">The people of Singur whose land was taken away by the Left Front government but who refused to accept compensation cheques during the process of land acquisition for the Tata factory were at the heart of the movement that brought Banerjee to power. They are still to get their land back. They've got no compensation either. It's a wonder Banerjee has the courage to look them in the eye.</p><p align="justify">In December 2011, 172 people died after drinking illicit liquor in Bengal. The state government offered Rs 2 lakh as compensation to the families of the dead. They are yet to get this money. In 2012, she promised 10 million jobs would be created in the state. There is no evidence of this either.</p><p align="justify">Instead, political violence in Bengal is rising. What else do you expect? In many areas, the local TMC functionary doubled up as an agent of chit fund companies like Saradha. This was a unique new take on extortion. The Communist Party of India (Marxist) activists opposed this. Clashes have been breaking out all over Bengal, described as political but, in fact, between one set of people who have suddenly become prosperous and another who are resentful at having to fund this.</p><p align="justify">Banerjee is now on a collision course with the courts for postponing the panchayat elections. The courts - one hopes in a rhetorical intervention - have asked Banerjee why, if the state had no money to hold elections, couldn't it consider taxing people to raise funds.</p><p align="justify">Banerjee is holding off elections because they will confirm not just her rising unpopularity in rural areas, but also create a political fulcrum for forces in her own party who are questioning her leadership. She has already lost urban Bengal. Now, rapidly, even in rural Bengal, the patience of people is running out. Her story is over.</p>
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<br><a href="http://www.business-standard.com/article/opinion/the-mamata-banerjee-story-is-over-113042600956_1.html" class="re" target="_blank">The Business Standard, 26 April, 2013, http://www.business-standard.com/article/opinion/the-mamata-banerjee-story-is-over-113042600956_1.html</a><div class="clear"></div>
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LATEST NEWS UPDATES | The Mamata Banerjee story is over...-Aditi Phadnis
The Mamata Banerjee story is over...-Aditi Phadnis
Published on Apr 30, 2013
Modified on Apr 30, 2013
-The Business Standard
A trail of unfulfilled promises follow her in rural and urban Bengal
The furious letter-writing since 2010 about the chit fund industry in West Bengal suggests that everyone knew the industry was going to implode.
Bengal has one of the highest rates in small savings, Trinamool Congress (TMC) leader Somen Mitra wrote to the prime minister in 2011. The state buys the highest number of new life insurance policies, and accounts for a high contribution to mutual fund subscriptions. Much of this pool of surplus cash is finding its way into the hands of chit funds that offer "simply impossible" interest rates. Could the prime minister please look into the matter, asked Mitra. The leader took a personal risk in flagging the issue since many of those who ran the chit funds - as we know now - are his colleagues. He said as much in his letter. "These chit funds do prosper with patronage of politicians who have even helped some chit fund owners to enter the illustrious House of Parliament."
Everyone knew who these owners were. Nothing happened.
In December 2012, Reserve Bank of India (RBI) Governor D Subbarao publicly told the state government that it needed to be vigilant on the operations of chit fund companies. "Money circulation schemes are banned under the Prize Chit and Money Circulation Schemes (Banning) Act, 1978, and the respective state governments have the power to take action against people involved in such schemes," he said, asking the state government to intervene.
No one in the state did anything.
In January 2013, the RBI wrote letters to the economic offences wing of the West Bengal government. It forwarded letters written to it by investors in rural Bengal, complaining they had been duped by chit fund companies.
There was no reply.
In January 2013, former West Bengal Finance Minister Asim Dasgupta held a press conference, where he warned that the chit fund asset bubble, built up since 2000, was about to burst: reports were flooding in complaints that chit fund companies have been unable to repay investors.
Still, no one did anything, except TMC Member of Parliament Kunal Ghosh who got a salary of Rs 16 lakh a month from the Saradha group and who predictably defended the industry. In an interview, he said not all chit funds were bad. "Chit fund companies employ thousands of people [he put the employment figure in cross-held media companies alone to between 4,000 and 5,000]. If chit funds are shut down, all these jobs will be lost," he warned.
Mamata Banerjee has defended Ghosh. She says everyone should wait until the results of the enquiry are out.
Can there be anything more obscene than this? A trail of promises made and not kept follows Banerjee.
The people of Singur whose land was taken away by the Left Front government but who refused to accept compensation cheques during the process of land acquisition for the Tata factory were at the heart of the movement that brought Banerjee to power. They are still to get their land back. They've got no compensation either. It's a wonder Banerjee has the courage to look them in the eye.
In December 2011, 172 people died after drinking illicit liquor in Bengal. The state government offered Rs 2 lakh as compensation to the families of the dead. They are yet to get this money. In 2012, she promised 10 million jobs would be created in the state. There is no evidence of this either.
Instead, political violence in Bengal is rising. What else do you expect? In many areas, the local TMC functionary doubled up as an agent of chit fund companies like Saradha. This was a unique new take on extortion. The Communist Party of India (Marxist) activists opposed this. Clashes have been breaking out all over Bengal, described as political but, in fact, between one set of people who have suddenly become prosperous and another who are resentful at having to fund this.
Banerjee is now on a collision course with the courts for postponing the panchayat elections. The courts - one hopes in a rhetorical intervention - have asked Banerjee why, if the state had no money to hold elections, couldn't it consider taxing people to raise funds.
Banerjee is holding off elections because they will confirm not just her rising unpopularity in rural areas, but also create a political fulcrum for forces in her own party who are questioning her leadership. She has already lost urban Bengal. Now, rapidly, even in rural Bengal, the patience of people is running out. Her story is over.
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