MODI 2.0 OVERCOMING PC NETWORK’S SABOTAGE OF ECONOMY: EXPERTS

The fallout of Chidambaram’s arrest has been underwhelming. The effect on stock markets, investor sentiment as well as global financial hubs has been a collective yawn.

International experts eager to identify and punish high-level policymakers active in the massive flow of illegal funds through banking channels are heartened that early in Modi 2.0, after years of procrastination, both the Enforcement Directorate as well as the CBI have presented enough evidence to convince the judiciary to give custody of former Finance Minister P. Chidambaram. Over more than two decades, the former Finance Minister, who is fifth in importance in the Congress Party after Sonia Gandhi, Rahul Gandhi, Priyanka Gandhi and Ahmed Patel, has established a network of officials who have assisted him in operations not (in the view of such experts) congruent with his Oath of Office. Throughout Modi 1.0, sufficient action against Chidambaram and his associates was stymied by the “PC network”, including by a cleverly created misperception that such an action would destabilise stock markets and generate a negative impression among global investors. Also added was the warning that New York and London, among other key financial markets, would react negatively to the enforcing of accountability on Chidambaram. It is clear that Prime Minister Narendra Modi has himself given the green light to go forward on the matter of the former Finance Minister, no matter what the fallout. The fallout has been underwhelming. The effect on stock markets, investor sentiment as well as global financial hubs of the Chidambaram arrest has been a collective yawn. The Prime Minister has acted not a day too soon. Amidst the successes achieved by Modi since 26 May 2014, an area of worry has been the economy. North Block remained unchanged in mindset and functioning even after the 2014 Lok Sabha polls, and among the consequences has been the continued operation of the Pc-backed Mumbai Financial Prime Minister Narendra Modi and Chinese President Xi Jinping check out a lamp on the second day of an informal summit in Tamil Nadu’s Mahabalipuram, on Saturday. Force (MMF) and their high level backers in the Lutyens Zone. Because of the scale of the misdeeds committed by the still active and influential “PC network”, it was expected in 2014 itself that swift action would be taken against the principal depredators who have hollowed out key elements of the economy, including from 2004 onwards. However, not only did North Block not initiate such justice, those active in the MMF continued to have rich pickings thanks to “PC network” contacts retained in key positions within North Block. Since the second term of President Barack Obama, the US and its West European allies have been willing— indeed, eager—to assist the Government of India in identifying those who have misused the banking system as well as stock exchanges in order to amass and siphon abroad an estimated $238 billion and counting (in present value) since 2001, according to international placeholders active in tracking illegal money flows from Asia to Europe and North America. Since the period when Jack Lew was Treasury Secretary under Obama (2013-17), the US Treasury has been willing to share software that is capable of tracking money flows with pinpoint accuracy in most locations, barring a few territories such as North Korea or parts of the Macau financial matrix. As yet, this offer (which is still standing) has not been taken up by North Block, according to the experts spoken to.