How executive could control Inflation?

How can we control Inflation? 

There are several measures that can be taken to effectively control inflation before it gets out of hand. Given that inflation is a result of cost push or demand pull functions in economy and imbalance between supply and demand of goods and services at current prices, so measures be taken to reduce costs and demand and increase supply of goods and services. Following measures in this regard are suggested;-

THE SUPPLY SIDE;

  

a) Increased Production;

The supply of goods and services can be increased by increasing Industrial and Agricultural production. Agricultural production can be increased by providing an adequate supply of agricultural inputs at low prices, modernization of agricultural, scientific farm management, adequate water supply for irrigation etc. Similarly Industrial production can be increased by giving incentives for increased production, foreign direct investment, credit growth fiscal concession etc.

b) Reducing costs of Production;

Reducing cost of debt; - decreased interest rates on Industrial and Agricultural loans.

Reducing labor cost; - Reducing minimum wage thus inviting more entrepreneurs into production.

Reducing price of raw materials; -, Lots of raw material is supplied by or is under control of Government or Politicians like mining products or by freeing imports from duties and tariffs.

Reducing prices of Gas, Energy, transportation etc will lead to lower costs of production and supply there nullifying cost push inflation. 

c) Control of Illegal Activities;

There are some illegal activities that cause significant inflation in economy. It is hoarding, smuggling, profiteering, black marketing etc. In the case of smuggling of large staples of sugar, butter, wheat rice etc are exported illegally in order to obtain higher prices. Similarly the shortage in most cases are artificially created to increase profits. All such activities must be controlled through advertisements, giving rewards to informants, and punishments to offenders.

d) Price and Security;

Production and distribution of goods can be affected due to existence of unease and insecurity or disorder in society. In such circumstances, investors are hesitant to invest for fear of potential loss. Similarly, the production of Industrial products is affected due to several unpleasant events such as strikes, public disorder, rallies riots etc. Therefore peace and security must be ensured to maintain regular supply of goods and services.

e) Maintain Energy Resources;

The supply of agricultural and industrial products is highly dependent on energy availability. If the energy availability is irregular or expensive it will adversely affect supply and its costs and will become expensive. Increased costs causes inflation. Therefore all necessary measures be taken to provide regular supply of major sources of energy to agricultural and industrial sector at constant costs.

THE DEMAND SIDE;

a) Control of Money Supply;

The money supply has great influence on rising inflation that is, money supply increases demand and thereby increases inflation and vise verse. Therefore to control inflation, measures must be taken to control money supply. The money supply can be controlled with the help of Monetary policy in which Central Bank of a Country uses various methods, such as Bank Rate policy, open market operations, changing reserve requirements, credit rationing, direct market intervention etc. All these methods are useful to control inflation in a country.

b) There is no deficit Financing;

Deficit financing shows that public is spending beyond their income. To some extent it will lead to development but it will also lead to inflation. Deficit financing is used to finance additional costs of budget deficit. This leads to increased money supply in economy. Therefore deficit financing should be discouraged and all developmental financing should be met through taxes and debt sale.

c) Population control;

In most developing countries, the population is increasing very quickly, whereas production of goods and services is not increasing at same pace. This leads to imbalance between demand and supply of goods and services which leads to inflation. Therefore, to control inflation, appropriate measures should be taken to control the population.

d) Fiscal Policy;

Fiscal policy refers to Government policy of public spending and taxes. The main objective of Fiscal policy is to maintain only a slight change in the general price level. During inflation, the government tries to reduce its expenditure on unproductive activities and the direct tax rate increases so that the purchasing power of the population is reduced. Due to reduction in the purchasing power of the population, demand of goods and services will be reduced leading to controlled Inflation.

e) Direct Measures;

There are several other options available to the government to control inflation and wage and price freeze, rationing of goods, establishments of public service shops, price review / stabilization committees. These several measures are often used by Governments to control inflation.

Kapil Dev Aggarwal

fees for orders of J Rajive Bhalla, High Court, Chandigarh filed march 14th, 2011

My Complaint against high Court Judge;
On 31^st of May we all read in The tribune an incident wherein a litigant got in court room of Rajive Bhalla, Judge, High Court, Chandigarh and made a complaint/ statement regarding graft / corruption. The gentleman was client of Mr Sisodia a known lawyer of fair standing at the bar. The Litigant said in open Court that he had paid 34 lacs to his lawyer for onward payment to Rajive Bhalla, Judge, High Court for favorable order. This was 3rd known incident in Court room of Rajive Bhalla, Judge, High Court.  http://www.tribuneindia.com/2012/20120531/punjab.htm#19

There was another incident in early 2011, wherein another litigant had got up in court room of Rajive Bhalla, Judge, High Court and made a complaint / statement about graft / corruption. He also said that He had paid lacs of Rupees to his lawyer for onward payment to judge for favorable order and if amount was less he can pay more. The gentleman was client of Mr Ahluwalia a known lawyer of fair standing at the bar.

The incident published in “The Tribune” on 31^st may was in fact 3^rd known incident involving Rajive Bhalla, Judge, High Court. 2nd incident is reproduced below by way of the text of Judicial record involving Rajive Bhalla, Judge, High Court where he was asked to recuse himself from a matter and he was told not to accept briefs in his chambers. Any one can obtain certified copy of Company Application 167 of 2011 decided on 1.4.2011 text of which is as under;-

"IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

Company Misc Application 167 of 2011 in IOIN in CP 96 of 1997

Altos India Ltd                     Petitioner

Versus              

Dadan Bhai & Ors                Respondent

Application for placing on record written submissions On issues raised on 11.3.2011 and motion for recusal.

Respectfully showeth;

1.     The court raised certain issues on 11.3.2011 with respect to letters written to and about Sh D P Ojha. Written submissions are enclosed.

2.     Prayer is also made that this court recuse itself from hearing the above matter for the reasons stated in Written submissions.

It is therefore prayed that Written submissions about issues raised by the court be perused / taken on record (If they have any relevance to the case) and for the reasons stated therein the Court of Mr Justice Rajiv Bhalla recuse itself from hearing the matter.

Chandigarh                K D Aggarwal

Date; March 14, 2011  Applicant

"IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

Company Misc Application 167 of 2011 In IOIN in CP 96 of 1997

Altos India Ltd                           Petitioner

Versus              

Dadan Bhai & Ors                      Respondent

WRITTEN SUBMISSIONS ON ISSUES RAISED BY COURT ON 11-3-2011

Respectfully Showeth:-

1.     On 11-3-2011 when the matter came up, the court wanted to know the reply of applicant about;

A)     Complaints to Sh D P Ojha regarding illegal payment of about Rs 1.00 crores being made by him to Industrial security against % gratification to him.

B)     Complaint of corruption against D P Ojha to Regional Director, Ministry of Corporate affairs regarding payment to Industrial Security.

C)     RTI applications.

The court observed that copies of all above documents in bunch are with court.

2.     The court was of the opinion that all the above letters are because of impugned order and applicant should not have written any letters against D P Ojha, an employee of Ministry of Corporate affairs New Delhi who is presently OL but should have approached the Judge in Chambers. The court also observed that applicant appears to be starved and in fact a complaint should be made against him to Bar Council.

3.     Nothing can be more further from the truth. A perusal of the record will show the first letter against illegal payment to Industrial security being made by D P Ojha against the express orders of the Court was by my letter Dt 20-11-2010 three months before the impugned order. The said complaint also mentioned that % commission is being charged By D P Ojha in name of Regional Director and secretary of MCA. OL has stated that my letter Dt 20-11-2010 delivered to him on 20-11-2010 was because of impugned order Dt 3-2-2011 passed after three months belies common sense. How my letter of 20-11-2010 can be based on something which happened on after three months on 3/12-2-2011. Above letter was followed by letter Dt 7-1-2011 again one month before impugned order Dt 3-2-2011 received on 12-2-2011.

4.     Same is the contention in response to observations at ‘B’, since my letter to Ministry of Corporate Affairs is verbatim copies of my letters Dt 20-11-2010 / 7-1-2011. Only additional para is w.r.t. to Altos India Ltd.

5.     It is the belief of applicant that if the executive officer is honestly doing its job and its orders suffers from errors of law than judicial review is the ONLY proper remedy, However it is also true that if executive orders are not bona fide and actuated by a b c d, then judicial review alone is not sufficient but matter should also be brought to the notice of appropriate authorities. That is why there is hierarchy and vigilance sections in each department of executive.  Sh Vishal Aggarwal advocate personally hand delivered letter DT 22-12-2010 on 22-12-2010 pointing out that Order Dt 1-9-2005 is ten times more powerful via concurrence than two lines in Form 58. However the contentions in said letter are maliciously silent in the impugned order. The demand was made and rightly informed to higher authorities.

6.     It has repeatedly been told to Mr Tewari, CPIO, O/O OL Ministry of Corporate affairs, New Delhi that if DP ojha is stealing from the properties and assets of companies in liquidation than he may decline to give me any information, however if they have nothing to hide and doing their jobs honestly they can simply put the asked files for inspection and give copies thereof. Mr Tewari has told me that Sh D P Ojha has forbade them to give me any information under RTI unsaid on the ground that information is prejudicial to the personal interests of D P Ojha. There are instructions from the employer of Sh D P Ojha to give all information sought under RTI, hence his denial of information has been brought to the notice of his employer.

7.     An employee of the liquidation section has been seeking use of Mercedes Benz car of the applicant for travel to out of station which has always been declined. He was always told that if some mishap occurs even a small repair costs a few lacs. If applicant informs this to company judge, he is complaining, if he does not; then why not before a false office note was put up. Seeking information on whether any office note was put up by staff on administrative side in case of Altos India Ltd is to know what facts have been told and what not. If they are honest what prevents them to show me my concerned file. That is why we exchange pleadings in law.

8.     The matters raised by the court are not the result of impugned order as they predate the impugned order. The matters are between Sh D P Ojha and his employer the Ministry of corporate affairs, New Delhi. Mr D P Ojha is very resourceful and highly connected person and will obtain appropriate orders from his Ministry also. He does not need a chaperon.

9.     I have been given unsolicited advice that I should file suit for recovery against Industrial security which has filed an affidavit refusing to accept terms and conditions of their empanelment with High Court. Once their affidavit was brought on record on administrative side by OL, may be for another reasons, Judicial course would have been to depanel them. Industrial security is very rich company based on its ‘connections’ and have sufficient resources and can hire most competent advocates who are ‘officially advocates’.

10.    The court also observed that applicant appears to be starved and in fact a complaint should be made against him to Bar Council. I refuse to dignify the abuses by responding t them. The settled fee should have been paid without having to ask for it. Regarding Complaint to Bar council, applicant has never certified anything under Chartered Accountants Act or practiced as such. There are people who have been on the CAs panel of OL and also appeared on this side as advocates wearing robes, but no threats were given to them. But then for Justice Rajive Bhalla rules are different for me a common man.

11.    The reply is being filed to put the record straight as lies have been told to Sh Rajiv Bhalla in chambers by vested interests. Mr Justice Rajiv Bhalla has made uncalled for comments, has used intemperate/ abusive language / gave verbal threats against applicant and has shown extreme bias and prejudice against the applicant and in favor of respondent D P Ojha based on lies told to him in Chambers by Sh D P Ojha and has asked me to appear before him on 16-3-2011. People are not exhibits. There are no Exhibits.

In the circumstances, neither me nor my counsel can appear on 16-3-2011 to prevent repeat of happenings in IFCI Vs AVI Autos. The Court of Sh Rajiv Bhalla is requested to recuse itself from the case.

KD Aggarwal, Advocate

Applicant."

Kapil Dev Aggarwal

For the oath of Office of Justice Rajive Bhalla please click here 

Oath taken by Justice Rajive Bhalla.

Parliamentry Form of Democracy?

The remarkable characteristic of the parliamentary form of democracy is the fact that a number of persons, let us say five hundred--including, in recent time, women also--are elected to parliament and invested with authority to give final judgment on anything and everything. In practice they alone are the governing body; for although they may appoint a Cabinet, which seems outwardly to direct the affairs of state, this Cabinet has not a real existence of its own. In reality the so-called Government cannot do anything against the will of the assembly. It can never be called to account for anything, since the right of decision is not vested in the Cabinet but in the parliamentary majority. The Cabinet always functions only as the executor of the will of the majority. Its political ability can be judged only according to how far it succeeds in adjusting itself to the will of the majority or in persuading the majority to agree to its proposals. But this means that it must descend from the level of a real governing power to that of a mendicant who has to beg the approval of a majority that may be got together for the time being. Indeed, the chief preoccupation of the Cabinet must be to secure for itself, in the case of' each individual measure, the favour of the majority then in power or, failing that, to form a new majority that will be more favourably disposed. If it should succeed in either of these efforts it may go on 'governing' for a little while. If it should fail to win or form a majority it must retire. The question whether its policy as such has been right or wrong does not matter at all.

Thereby all responsibility is abolished in practice. To what consequences such a state of affairs can lead may easily be understood from the following simple considerations:

Those five hundred deputies who have been elected by the people come from various dissimilar callings in life and show very varying degrees of political capacity, with the result that the whole combination is disjointed and sometimes presents quite a sorry picture. Surely nobody believes that these chosen representatives of the nation are the choice spirits or first-class intellects. Nobody, I hope, is foolish enough to pretend that hundreds of statesmen can emerge from papers placed in the ballot box by electors who are anything else but averagely intelligent. The absurd notion that men of genius are born out of universal suffrage cannot be too strongly repudiated. In the first place, those times may be really called blessed when one genuine statesman makes his appearance among a people. Such statesmen do not appear all at once in hundreds or more. Secondly, among the broad masses there is instinctively a definite antipathy towards every outstanding genius. There is a better chance of seeing a camel pass through the eye of a needle than of seeing a really great man 'discovered' through an election.

If then issue is one which affects their re-election, then Parliament becomes a turbulent mass of people, all gesticulating and bawling against one another, with a pathetic old man shaking his bell and making frantic efforts to call the House to a sense of its dignity by friendly appeals, exhortations, and grave warnings. One could not refrain from laughing.

And if some matter of real public good if at all comes before it courtesy 'executive', the House would be practically empty. MPs would be sleeping in the other rooms. Only a few deputies in their places, yawning in each other's faces. One is speechifying. A deputy speaker is in the chair. When he looked round it was quite plain that he too felt bored.

Kapil Dev Aggarwal;

Sources;

“Mein Kampf”

When Brij Singhal Lied.

Following is part of Public Records contained in Criminal Appeal 715 of 2001 in High court of New Delhi; Judge Murlidhar dismissed it without quoting pleadings facts evidence Or Constitution and IPC by saying it is delaying tactic. Wow.

1.             That the Brij appeared as witness in case Rajni Aggarwal V/S Kapil Dev Aggarwal in the court of Sh. S. S. Lamba, ADJ Chandigarh. While appearing as PW 4 on behalf of the Rajni on 4.4.98 he swore to state the truth but however he made various statements in the court which were false and which he knew to be false to his knowledge.  He thus committed an offence deliberately giving false evidence.  The statements which were made by the Brij under oath knowing them to be false are as reproduced hereunder:-

2.             "I can identify the handwriting of my daughter Rashmi Mark "D" is not in the handwriting of my daughter. Mark "H" is also not in the hand of Rashmi"

Proof of falsity.

Smt Rashmi Bansal had appeared in this court on 14.12.1998 and submitted her standard handwritings/signatures. These two documents were gut examined by the complainant from the handwriting expert Dr.K. N. Parsad.  The report is exhibit D-63 on the record of the trial court and states as under:-

"The person who wrote the standard writings\signatures marked A-1 to A-1 also wrote the questioned writing\signatures Mark Q 1 and Q 2."

By virtue of the report of the handwriting expert as well as by visual comparison of layman, the standard writings submitted by Rashmi are the same as contained in Mark "D" and Mark "H" which were denied by the Brij to be in the handwriting of her daughter Rashmi.  The Brij has thus committed an offence of perjury by deliberately giving false statement under oath before this court.

3.             The Brij has stated "My daughter Rashmi was married on 19.4.95 at Mandi Gobindgarh.  Rajni and her husband did not attend that marriage at Mandi Gobindgarh. My daughter Rashmi was engaged with Sanjay in January, 1995.  No engagement ceremony took place.  It is wrong to suggest that engagement ceremony was performed on 5.3.95 at my residence at Chandigarh, since there was no ceremony there was no question of attending the same by the Rajni and her husband".

Proof of falsity.

Rajni herself while appearing as her own witness stated ns under:- "There was marriage of the daughter of my Uncle and in that marriage I and the me I both attended that marriage.  We also attended the ring ceremony".  The date of ring ceremony of 5.3.1995  is mentioned in Exhibit D 1/X. It is thus apparent that the statement made by the Brij is falsified by statement of Rajni.  It is the Brij Singal who had deliberately made false statement as submitted above.

4. The Brij has made the following false statement; “I have given Loan of Rs 5.00 lacs to M/s.Gopal Sales (P) Limited; voltd which has been returned now.  It was returned in the year 1996-97.  I do not know whether at the time of return of money who was the Director.  I know Raj Singal who is my Nephew and Kiran Singal who in his wife.  I do not know whether Raj Singal and Kiran Singal are the directors of the above referred company.   The loan which was returned back was by way of cheque.  I do not know who signed that cheque.  It is wrong to suggest that the firm repaid the loan to him after selling the ancestral gold of Kapil by Rajni’s father".

Proof of falsity.

The Brij admits that Gopal Singal, Jagan Nath were the directors of the company when he gave the loan.  He also admits to knowing Raj Singal and his wife Kiran Singal.  In 1996-97 Raj Singal and Kiran Singal were the directors along with Gopal Singal.  It is thus apparent that he knew the directors of the company and the person who returned the money. As per the information available, the loan was not repaid by way of any cheque as stated by the Brij.  He has deliberately made a false statement to this court to hide clandestine sale of property or the parties towards the repayment of the money advanced by him.

5. The Brij has deliberately made the following false statement:- "It is correct that a criminal complaint was filed under the wealth tax and I was one of the accused.  It is correct that the criminal complaint is still pending in the court of CJM. I am still Director of that company (Jagan Nath Brij (P) Limited

Proof of falsity.

As per the records maintained in the office of Registrar of Companies only Sh. Raj Singal and father of Raj Singal are the directors of Jagan Brij Pvt. Limited; 

6.   The Brij has made the following false statement when he was put the question as to whether he clandestinely operated his locker on 4.5.94, he said "Yes". though denied that it was not clandestine as he could operate his locker at any time,  There after the following question and answer have been recorded by this court.

Q.             Did you operate that locker without making entry in the bank record or not on the same day?

Ans.          I do not remember.

Proof of falsity.

It is well established fact that locker cannot be operated without due entry in Bank records.  There is no question of anybody operating the locker without entry in the bank records and if after having done it there was no question of forgetting it.  In fact he knew about the income tax raids and had taken key of the locker with him and while the raids were being conducted at his house he operated the locker and removed the valuables lying therein.  When he did not pay the bank officers the promised bribery they informed this matter to the income tax Authorities. He later on admitted this fact before the income tax authorities.  There is no question that he was not remembering the above incident.  He had deliberately made a false statement under oath before this Hon'ble court.

6. The Brij had made further false statements as below:-"All members of family of Jagan Nate are wealth tax as well as income tax assesses."

Proof of falsity.

All the members of family of Jagan Nath are neither wealth tax nor income tax assesees.

13. It is wrong to suggest that “I alongwith Rajni went to the Bank of the Kapil jointly held in name of Rajni in Sector 37 and father of the Rajni stood outside the Bank to guard. It is wrong to suggest that I accompany the Rajni at the time when Rajni operated the locker in the Punjab National Bank in Sector 37 Chandigarh on 15.9.95.  It is wrong to suggest that Rajni operated the locker on the instigation and pressure of myself, my brother Jagan Nath, Son Gopal and Murti Devi w/o Jagan Nath. It is further wrong to suggest that I along with my brother Jagan Nath, his wife Murti Devi, Son Gopal and Pardeep Goyal went to the house of Kapil on 15.9.95 and removed all the household goods from the his house forcibly and brought the Rajni with us along with the articles” and the statements made in examination in chief.

Proof of falsity.

Testimony of Late Sh.B.L.Premi, Assistant Branch

Manager, PNB Sector 37, Chandigarh.

Testimony of Sh.S.K.Mishra.

Testimony of Sh.Pavitar Kumar.

KAPIL DEV AGGARWAL

Click here for;

What I Did not Knew nor could imagine.

Dates and Events.

In-laws Indebtedness.

Proof of Theft by Rajni her Brother and Father

False Allegations to Loot Money

What happened in Appeal.

How her father lied 

How her brother lied 

Education to poor - 1st step towards Freedom of India.

Recent Supreme Court order upholding right to education, a brain child of Kapil Sibal is probably the first big and bold step towards a free and vibrant India.

        In this nation there exists a huge gap between have and have-nots. While have - have it all be it better education facilities and thus better job opportunities and have-nots mostly have no education facilities at all and none at jobs. Hence while rich become richer poor have become poorer. Films like ‘Arakshan’ have laid bare the gap between education of Economically Weaker Sections of the society and the rich class. Reservations in jobs and promotions though may get more votes and thus help some make money but that does not make a better nation or a better tomorrow. For a nation to excel, its foremost duty is to provide equal opportunities to all starting with education and health.

 Education is a necessity. Our economic system depends from growth. "Growth" economically is defined by the increase of turnover of goods and services. Theoretically that either results from destruction (natural disaster, war) or from "replacement" of old ones. That "replacement" process is only possible by innovation. "Innovation" comes out of Research and development, R & D is depending from "education". Any economy not investing into education is shoveling its own grave.

It has been generally perceived that children belonging to rich families and who have studied in so called top public schools are better suited in civil services than those children who have not studied in public schools. A person born in a poor family is considered inferior to a boy who is born in a rich family.  A person may be born in a poor family but he may be more talented than a boy born in a rich family.  Experience has shown that talent is inbred in a child and has nothing to do with his social status.  A rich culture to which a boy has born does not give him inherent talent which is required for a nation.  Had a poor boy been educated in the similar circumstances as a rich boy would bring out the hidden talent of that poor boy.  The situation had come where talent and natural gift had not been taken in qualifying for a right to a higher education and only money counted. 

It is intolerable to think that year after year millions of our children who have higher natural gifts and talent have been deprived of higher education in the same institutes as the children of rich people, even though those children may not possess single vestige of inherent talent.  It is true that a man can be trained to a certain amount of mechanical dexterity just as a poodle can be taught incredible tricks by his clever master.  But such training does not bring the animal to use his intelligence to carry out those tricks.  Similarly, it is possible to teach men irrespective of talent or not talent to go through certain exercises but in all such cases the results are mere mechanical and inanimate as in the case of an animal.  It is possible to force a man of mediocre intelligence by means of intellectual drilling  to gain knowledge but that would not increase the intelligence of such person and his knowledge will remain sterile.  A man may be walking dictionary of knowledge but when time and circumstances warrant he may be found lacking in that intellectual analyze that situation demands to think promptly to take corrective decisions. 

Such people cannot be considered fit for service of the nation and this nation till date has been deprived the use of million of its children who have been born in the economically weaker section of the society.   It goes without saying that gifted and talented people are found in every sphere of life.  The talent must be brought out by enabling those children to be educated in the same schools and educational institutions whose door till date have been closed to them.  Here again the author would like point out that stock of knowledge packed into a brain will not suffice to make discoveries, but only that knowledge which is illuminated or guided by the natural talent of that child.    Here the author means that every child in whatever sphere of life, is not equally talented in all spheres of life.  Every child has a particular talent which can goad him to higher spheres of life. Thus it is the duty of the nation to give every child an automatic right to higher educational institutions which will then determine the talent of that child.    

This has been imperative necessity for thus alone it will be possible to develop the body of talented leaders/Govt. Servants/IAS Officers to serve the nation, unlike the robots that they have become today.  There is another reason why the higher social classes must intermingle with the people of so called lower social strata.  It has long been cut off from those people considering all along that those people are fit only for menial and manual labour thereby they themselves  live in seclusion from vast majority of the people of society.  It is the duty of this nation that talent of its citizens wherever it may be must be brought out so that the best people serve the nation.  And there is no strata of society who feel aloof from the welfare of the nation.  It is the duty of the nation to select the best people with talent and knowledge who can serve in civil services and train the best brains for those branches of public service for which they show a natural aptitude and placing them in such offices where they can do best and contribute there best for he good of the community.  But on this issue,  I will speak exhaustively in my next article.

KAPIL DEV AGGARWAL.