Despite fall, GDP will bounce back sharply: RBI Governor

New Delhi, Feb 17 (PTI) Reserve Bank Governor Urjit Patel today said India's economic growth will make a "sharp V" recovery following the recall of old 500 and 1,000 rupee notes.

Patel also made a strong case for continuing with globalisation even in the face of a potential shift to trade protectionism under US President Donald Trump as India has benefited from open trade.

"Almost everyone agrees that the impact is going to be a sharp 'V', that we would have a downgrade of growth for a short period of time," he told CNBC-TV18 in an interview.

"However, the remonetisation has happened at a fast pace and that was part of the plan."

RBI last week lowered economic growth for the current fiscal to 6.9 per cent from the previously projected 7.1 per cent, but saw it bouncing back in a big way to 7.4 per cent in 2017-18.

He said the benefit of junking 86 per cent of currency in circulation will take time to fully play out and needs more work to ensure they are lasting.

Asked when India could achieve 9 per cent GDP growth, he said it is difficult to predict sustainable growth rates.

Higher growth rate is possible if very fundamental reforms, especially in factors of production like land and labour, are undertaken, the Governor said.

"Now how much higher than 7.5 that we are achieving so far is difficult to say. But the fact is we need to grow at some point faster than we are now," he said. "I think 7.5 per cent growth rate is not something to be disappointed about."

The six-member monetary policy committee (MPC) headed by Patel had last week kept interest rates unchanged at 6.25 per cent for the second straight meeting and changed policy stance to 'neutral' from 'accommodative'.

The change in stance, he said, gives more flexibility to cut, raise or hold rates as compared with an accommodative one on inflation outlook.

"The best way that central bank can support growth on a durable basis is to ensure inflation is low, stable, there is financial stability and that is the role the central bank plays. Very few countries grow at high growth rate if inflation is high and volatile. So, I think we are doing our bit to support higher growth rate, but on a durable basis," he said.

The RBI Governor expressed concern over the US moving towards protectionism under Trump.

"I think it is a cause of concern for the world, I think it is a cause of concern for the emerging markets in terms of creating financial volatility. I don't think anyone will be safeguarded from it. We have to manage this as it plays out," he said. .

Centre submits issues in SC,questions practice of triple talaq

New Delhi, Feb 16 (PTI) The Centre today submitted in the Supreme Court a list of issues for adjudication including the question whether fundamental right to practice and propagate one's religion protected the practice of triple talaq, 'nikah halala' and polygamy among Muslims.

The NDA government has, for the first time in India's constitutional history, opposed in the top court such prevalent practices among Muslims on grounds like gender equality, secularism and binding international covenants.

A bench headed by Chief Justice J S Khehar perused the four questions framed by the Centre and said they were "constitutional" ones which need to be dealt with by a five-judge bench.

The first issue was whether the practices of triple talaq, 'nikah halala' and polygamy are protected under Article 25(1) of the Constitution.

The Article says: "Subject to public order, morality and health and to the other provisions of this Part, all persons are equally entitled to freedom of conscience and the right freely to profess, practice and propagate religion." 

The government then raised the question whether the right to practice and propagate religion is subject to other equally important rights, that is right to equality (Article 14) and right to life (Article 21) of the Constitution.

It then referred to Article 13 which provides that any law is void if it is not in conformity of the constitutional scheme and framed the issue whether the Muslim personal law amenable to this provision or not.

The fourth issue, framed for the consideration of the apex court, said these practices are compatible with India's obligations under international treaties and covenants to which nation is a signatory.

Earlier, the Centre, in its affidavit, had opposed these practices among Muslims by referring to constitutional principles like gender equality, secularism, international covenants, religious practices and marital law prevalent in various Islamic countries.

"It is submitted that the issue of validity of triple talaq, nikah halala and polygamy needs to be considered in the light of principles of gender justice and the over-riding principle of non-discrimination, dignity and equality," it had said.

Sasikala loyalist Palaniswami sworn in as Tamil Nadu CM

Chennai, Feb 16 (PTI) Edappadi K Palaniswami, a V K Sasikala loyalist, was today sworn-in as the Chief Minister of Tamil Nadu, ending the 10-day political uncertainty in the state which began with caretaker CM O Panneerselvam's revolt against the AIADMK general secretary.

Palaniswami is the third person to occupy the top post in the last nine months.

Governor C Vidyasagar Rao administered the oath of office and secrecy to 63-year-old Palaniswami, a party veteran from western Tamil Nadu, at the head of a 31-member Cabinet at a ceremony in the Raj Bhavan this evening.

The ministers were sworn-in in batches.

Palaniswami is the third AIADMK leader to be sworn-in as Chief Minister in the last nine months. AIDMK supremo and Chief Minister J Jayalalithaa had powered the party to a rare successive term in office in the state in the May, 2016 Assembly Polls. She continued in the post through her grim 74-day battle for life.

Within hours of her death on December 5, Panneerselvam, who had filled in for Jayalalithaa twice in the past when she had to go to jail in corruption cases, was sworn-in as Chief Minister.

Panneerselvam later stepped down, paving the way for Sasikala, who was already chosen AIADMK general secretary, to be elected its legislature party leader on February five.

However, the usually reticent Man Friday of Jayalalithaa rose in rebellion against Sasikala two days later, claiming he was coerced into resigning. He even expressed willingness to become Chief Minister again if the people of Tamil Nadu and AIADMK workers so desired.

His belligerence plunged the state into a political crisis.

Amid the face off with Panneerselvam, Sasikala met Governor Rao on February 9 and staked claim to form the government.

Notwithstanding criticism from several quarters, Rao preferred to wait and watch as the political tug-of-war played out between the rival AIADMK factions.

He stood vindicated when Sasikala and two members of her family were convicted and their sentences restored by the Supreme Court in a disproportionate assets case on February 14, rendering her ineligible for contesting elections for 10 years and dashing her hopes of becoming the Chief Minister.

Sasikala then handpicked her loyalist Palaniswami, who was elected AIADMK legislature party leader, and staked claim to form the government on Tuesday.

Palaniswami was invited by the Governor today to form the government after he submitted a list of 124 MLAs supporting him last night. He has 15 days to prove his majority in the 234-member Tamil Nadu Assembly.

India scripts history, launches 104 satellites at one go

Sriharikota (AP), Feb 15 (PTI) Scripting history, India on Wednesday successfully launched a record 104 satellites--all but three of them foreign--from here and put them into orbit in a single mission onboard its most dependable Polar rocket.

Recording its 38th consecutive success, ISRO's workhorse Polar Satellite Launch Vehicle (PSLV) injected India's weather observation Cartosat-2 Series satellite and 103 nano satellites into precise orbit in a gap of 30 minutes after a textbook lift-off from this spaceport, about 100 km from Chennai.

As the country seeks a bigger slice of the multi-billion dollar space launch industry, the Indian Space Research Organisation(ISRO) bettered Russian space agency's feat of launching 37 satellites at one go in 2014. The previous highest number of satellites launched by ISRO in one mission was 20 in June 2015.

A majority of the satellites have earth-imaging capability while the Indian cartographic satellite is capable of taking high resolution images.

Celebrations erupted among scientists at the spaceport here when the ISRO chief announced that all the satellites had been put into orbit as planned.

"All 104 satellites successfully placed in orbit. My hearty congratulations to the entire ISRO team for the wonderful job they have done," a beaming ISRO Chairman A S Kirankumar said.

Prime Minister Narendra Modi congratulated ISRO for the successful launch of 104 satellites, calling it a "renarkable feat".

"Congratulations to @isro for the successful launch of PSLV-C37 and CARTOSAT satellite together with 103 nano satellites!," the Prime Minister said in a tweet

"This remarkable feat by @isro is yet another proud moment for our space scientific community and the nation

India salutes our scientists," he said.

Cartosat-2 Series satellite, a remote sensing spacecraft with a five-year life span, would send images that would be utilised in coastal land use and regulation, road network monitoring, distribution of water, creation of land use maps among others, ISRO said.

After a flawless flight, the rocket first put into orbit 714 kg Cartosat-2 Series satellite followed by the co- passengers --ISRO's INS-1A and INS-1B, 96 other nano satellites belonging to two US companies, and one each from Israel, Kazakhstan, The Netherlands, Switzerland and the UAE

Each nano satellite weighs less than 10 kg.

The satellites were placed in the polar Sun Synchronous Orbit (SSO) in a gap of about 30 minutes during a series of separations.

The complex mission once again proved ISRO's capabilities in undertaking commercial launches with the PSLV achieving its 38th consecutive success

So far, ISRO has launched 226 satellites, including 179 belonging to foreign countries

At the end of the 23-hour countdown, the shortest so far by ISRO, the PSLV on its 39th flight, blasted off from the first launch pad at the Satish Dhawan Space Centre at 9:28 AM and soared into clear skies

ISRO said it was able to reduce the countdown time, which normally varies upto 52 hours, as the preparations were completed in a shorter span.

Kiran Kumar said 77 of the satellites have already started communicating with the earth stations after the launch.

He said the mission was about maximising ISRO's returns and improving its capabilities

"Through PSLV, we are trying to capture a particular segment of (space launch market)," he told the post-launch media conference.

Replying to a question, he said US firms approach ISRO for launch of smaller satellites as the frequency of PSLV launches was more by India.

Project Director B Jayakumar said ISRO had lived up to the expectations of customers.

"It was a very good learning experience for us. We have launched 226 satellites out of which 179 are from foreign nations." 

With a total payload of 1378 kgs, ISRO opted for the most powerful XL variant of the PSLV for the 16th time in Wednesday's mission. It had earlier been used in the 'Chandrayaan' and the Mars Orbiter Mission (MOM) among others

The nano-satellites belonging to international customers were launched as part of their arrangement with the Antrix Corporation Ltd (ANTRIX) the commercial arm of the ISRO.

CARTOSAT-2 Series satellite was similar to the earlier four satellites in the Series

INS (ISRO Nano Satellite) 1A and 1B carry a total of four different payloads from Space Applications Centre (SAC) and Laboratory for Electro Optics Systems (LEOS) of ISRO for conducting various experiments.

Trump national security aide Flynn resigns over Russian contacts

FILE PHOTO: Russian President Vladimir Putin (R) sits next to retired U.S. Army Lieutenant General Michael Flynn (L) as they attend an exhibition marking the 10th anniversary of RT (Russia Today) television news channel in Moscow, Russia, December 10, 2015. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

WASHINGTON : President Donald Trump's national security adviser, Michael Flynn, resigned late on Monday after revelations that he had discussed U.S. sanctions on Russia with the Russian ambassador to the United States before Trump took office and misled Vice President Mike Pence about the conversations.

Flynn's resignation came hours after it was reported that the Justice Department had warned the White House weeks ago that Flynn could be vulnerable to blackmail for contacts with Russian ambassador Sergey Kislyak before Trump took power on Jan. 20.

Flynn's departure was a sobering development in Trump's young presidency, a 24-day period during which his White House has been repeatedly distracted by miscues and internal dramas.

The departure could slow Trump's bid to warm up relations with Russian President Vladimir Putin.

Flynn submitted his resignation hours after Trump, through a spokesman, pointedly declined to publicly back Flynn, saying he was reviewing the situation and talking to Pence.

Flynn had promised Pence he had not discussed U.S. sanctions with the Russians, but transcripts of intercepted communications, described by U.S. officials, showed that the subject had come up in conversations between him and the Russian ambassador.

Such contacts could potentially be in violation of a law banning private citizens from engaging in foreign policy, known as the Logan Act.

Pence had defended Flynn in television interviews and was described by administration officials as upset about being misled.

"Unfortunately, because of the fast pace of events, I inadvertently briefed the vice president-elect and others with incomplete information regarding my phone calls with the Russian ambassador. I have sincerely apologized to the president and the vice president, and they have accepted my apology," Flynn said in his resignation letter.

Retired General Keith Kellogg, who has been chief of staff of the White House National Security Council, was named the acting national security adviser while Trump determines who should fill the position.

Kellogg, retired General David Petraeus, a former CIA director, and Robert Harward, a former deputy commander of U.S. Central Command, are under consideration for the position, a White House official said. Harward was described by officials as the leading candidate.

A U.S. official confirmed a Washington Post report that Sally Yates, the then-acting U.S. attorney general, told the White House late last month that she believed Flynn had misled them about the nature of his communications with the Russian ambassador.

She said Flynn might have put himself in a compromising position, possibly leaving himself vulnerable to blackmail, the official said. Yates was later fired for opposing Trump's temporary entry ban for people from seven mostly Muslim nations.

SC convicts Sasikala in DA case, dashes her bid to be TN CM

New Delhi, Feb 14 (PTI) AIADMK chief V K Sasikala was today convicted in a corruption case by Supreme Court which dashed her ambition to become the Tamil Nadu Chief Minister, as the verdict holding her guilty of entering into a conspiracy with late AIADMK supremo J Jayalalithaa would bar her from electoral politics for the next decade.

The apex court judgement, delivered at a time when the state is witnessing a bitter power struggle in the aftermath of Jayalalithaa's demise, set aside the Karnataka High Court order acquitting all the four accused and "restored in toto" the trial court's decision in the 19-year-old disproportionate assets case.

60-year-old Sasikala will now have to serve a jail term of around three-and-half years out of four years awarded by the trial court as she has already undergone almost six months in prison.

The special trial court had found disproportionate assets worth Rs 53.60 crore, which Jayalalithaa and the three others could not account for. The CBI had alleged that the unaccounted wealth was in the tune of Rs 66.65 crore.

The top court directed Sasikala and her two relatives -- V N Sudhakaran, Jayalalithaa's foster son, and Elavarasi, widow of Sasikala's elder brother, to "forthwith surrender" before the Bengaluru's trial court which will "take immediate steps" to ensure that all the three "serve out the remainder of sentence awarded to them and take further steps in compliance of this judgement, in accordance with law." 

Sasikala, the close aid and shadow of Jayalalithaa for almost three decades, was locked in a power struggle for the top post with acting Chief Minister O Panneerselvam, who was today sacked from AIADMK's primary membership.

She had been in the jail in 1996 when the case was registered and later in 2014 after the Special trial court convicted and awarded a four-year sentence with a fine of Rs 10 crore. Jayalalithaa was then awarded four-year jail term, besides a fine of Rs 100 crore.

The apex court, which abated the proceedings against Jayalalithaa who breathed her last on December 5 last year, held that the criminal conspiracy was hatched at her Poes Garden residence in Chennai.

"The joint residence of all the accused persons also could not be ignored as a factor contributing to the charge of conspiracy and abetment when assessed together with the attendant facts and circumstances reinforcing the said imputations," a bench comprising Justices P C Ghose and Amitava Roy said.

Crucial verdict in case agnst Sasikala tom to decide her fate

New Delhi/Chennai, Feb 13 (PTI) The all-important Supreme Court verdict, which will decide the future of AIADMK supremo VK Sasikala, locked in a battle for chief ministership with O Pannerselvam, is set to be pronounced tomorrow.

The make-or-mar judgement for Sasikala in the disproportionate assets case is likely to be delivered at 10:30 am, according to the Supreme Court causelist of cases to be taken up by it tomorrow.

The bench of Justices P C Ghose and Amitava Roy, will pass its order on a batch of appeals, including the one filed by the Karnataka government acquitting the main accused in the case, former Tamil Nadu chief minister the late J Jayalalithaa and three others, including Sasikala.

Since Jayalalithaa is dead, the case against her would be abated. The other accused in the case are Sasikala's relatives V N Sudhakaran and Elavarasi. All four had been convicted by the trial court, but acquitted by the Karnataka High Court.

The political future of Sasikala, a long-time friend of Jayalalithaa, would entirely hinge on the Supreme Court judgement.

Sasikala, who was elected AIADMK legislature party leader on February five, will be rendered ineligible for contesting an assembly election in the event of conviction, thereby stifling her ambition of becoming the Chief Minister.

The information about the likely Supreme Court order came on a day Attorney General Mukul Rohatgi advised Governor C Vidyasagar Rao to hold a special session of the state assembly within a week for a floor test to ascertain who between Sasikala and caretaker Chief Minister O Panneerselvam enjoys majority support of AIADMK MLAs.

In his opinion, sources said, Rohatgi has stated that "he (Governor) should call a special session within a week's time and have a composite floor test as was ordered by the Supreme Court in the Jagdambika Pal case".

The Attorney General has cited the 1998 Supreme Court judgement in the Jagdambika Pal case in which the apex court had ordered a floor test in the assembly to determine who between the two claimants -- Pal and Kalyan Singh -- commanded the majority support for chief ministership of Uttar Pradesh.

If the Governor, who has kept his cards close to chest since last Thursday, the day Sasikala staked claim to form the government, goes by the AG's advise, the dispute between the rival AIADMK factions would be decided on the floor of the House.

The Governor can also swear in Sasikala without the assembly having to go through the rigour of a floor test as she has already been elected the AIADMK legislature party leader.

Panneerselvam's revolt notwithstanding, she enjoys the support of an overwhelming majority of party MLAs, six of whom have shifted their loyalty to the caretaker Chief Minister.

Pannerselvam also has the backing of 11 MPs, including two of the Rajya Sabha.

The Tamil Nadu government today informed the Madras High Court, hearing habeas corpus petitions seeking production of two MLAs who were said to be lodged at a resort on Chennai's outskirts that apart from them 119 legislators kept there have recorded their statements saying they have not been illegally detained.

Tamil Nadu has a 234-member assembly and Sasikala looks set for a facile victory during a floor test, but an adverse court verdict can put paid to her chief ministerial ambition.

N Korea fires ballistic missile in challenge to Trump: Seoul

Seoul, Feb 12 (AFP) North Korea fired a ballistic missile today in an apparent provocation to test the response from new US President Donald Trump, the South Korean defence ministry said.

The missile, launched around 7:55 am (local time) from Banghyon air base in the western province of North Pyongan Province, flew east towards the Sea of Japan (East Sea), it said.

The missile flew about 500 kilometres before falling into the sea, a defence ministry spokesman said, adding the exact type of missile had yet to be identified.

"It is believed that today's missile launch ... is aimed at drawing global attention to the North by boasting its nuclear and missile capabilities," the ministry said in a statement.

"It is also believed that it was an armed provocation to test the response from the new US administration under President Trump," it added.

Yonhap news agency said the South Korean military suspected the North might have been testing a intermediate-range Musudan missile.

Last October North Korea test-fired Musudan missiles twice from the same airbase.

On a visit to Seoul earlier this month, new US Defense Secretary James Mattis warned Pyongyang that any nuclear attack would be met with an "effective and overwhelming" response.

"Any attack on the United States or our allies will be defeated and any use of nuclear weapons would be met with a response that would be effective and overwhelming," Mattis said.

Pyongyang in 2016 conducted two nuclear tests and numerous missile launches in its quest to develop a nuclear weapons system capable of hitting the US mainland.

In January leader Kim Jong-Un boasted that Pyongyang was in the "final stages" of developing an intercontinental ballistic missile (ICBM) in an apparent attempt to pressure the incoming US president.

Trump shot back on Twitter, saying "It won't happen." 

The latest North Korean launch also comes after Trump assured visiting Japanese Prime Minister Shinzo Abe that Washington was committed to the security of its key Asian ally.

"We will work together to promote our shared interests, of which we have many, in the region, including freedom from navigation and defending against the North Korean missile and nuclear threat, both of which I consider a very, very high priority," Trump said Friday.

Washington has repeatedly vowed that it would never accept North Korea as a nuclear-armed nation.

Analysts are divided over how close Pyongyang is to realising its full nuclear ambitions, especially as it has never successfully test-fired an ICBM.

But all agree it has made enormous strides in that direction since Kim took over after the death of his father and longtime ruler, Kim Jong-Il, in December 2011.

Trump considers 'brand new' executive order on immigration

Washington, Feb 11 (PTI) President Donald Trump has said he is considering signing a "brand new" executive order by next week temporarily barring refugees and citizens of seven Muslim-majority nations from entering the country, a day after a US court refused to reinstate his controversial travel ban.

"We will win that battle. The unfortunate part is that it takes time statutorily, but we will win that battle. We also have a lot of other options, including just filing a brand new order," Trump told reporters travelling with him on Air Force One from Andrews Air Force Base to Florida.

Asked if his plan might be to issue a new executive order, Trump said: "It very well could be. We need speed for reasons of security, so it very well could be." 

Trump said that "in honour of the (9th US Circuit court) decision" he will likely wait until next week to respond with any action. "Perhaps Monday or Tuesday," he said.

The new executive order on immigration would include security measures, Trump said.

"New security measures. We have very, very strong vetting. I call it extreme vetting and we're going very strong on security. We are going to have people coming to our country that want to be here for good reason," he said.

The President's remarks came after a three-judge bench of the 9th US Circuit Court of Appeals in San Francisco refused to reinstate his controversial travel ban on Thursday.

The judgement means that citizens of seven majority- Muslim countries will continue to be able to travel to the US.

Trump signed the executive order last month suspending the arrival of all refugees for at least 120 days, Syrian refugees indefinitely, and barring citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for 90 days, fulfilling one of his central campaign promises.

"We will be doing something very rapidly to do with the additional security for our country. You'll be seeing that sometime next week," Trump said speaking at the White House.

"In addition, we will continue to go through the court process and ultimately, I have no doubt we will win that particular case," Trump told reporters during a joint news conference yesterday with Japanese Prime Minister Shinzo Abe.

"We are going to keep our country safe. We are going to do whatever is necessary to keep our country safe. We have had decision which we think will be very successful with, it shouldn't have taken this much time because safety is a primary reason," Trump said.

"One of the reasons I am standing here today, the security of our country, the voters felt I would give it the best security," he said, indicating that he would continue with his efforts for the safety and security of the US despite the court setback.

"While I've been President, which is just for a very short period of time, I've learned tremendous things that you could only learn, frankly, if you were in a certain position, namely President," he said.

Trump said there are tremendous threats to the country.

"We will not allow that to happen, I can tell you that right now. So we'll be going forward and we'll be doing things to continue to make our country safe. It will happen rapidly and we will not allow people into our country who are looking to do harm to our people," he said.

Wait for CM in TN gets longer

Chennai, Feb 10 (PTI) The wait for Chief Ministership in Tamil Nadu prolonged with Governor Vidyasagar Rao still undecided on the issue as the feud in the ruling AIADMK escalated today with V K Sasikala sacking party presidium chairman E Madusudanan who wrote to the Election Commission not to recognise her as General Secretary.

The Governor was said to be still evaluating legal opinion on Sasikala's claim to having an overwhelming support of party MLAs while the judgement of Supreme Court on disproportionate assets case against her was imminent next week.

On his part, Chief Minister O Panneerselvam tonight asserted that his camp would not allow the party to go into hands of 'a family' and that the "dream of those to capture power" will end as a "day dream".

Sending a strong message to her detractors, Sasikala sacked Madusudanan from the primary membership of the party, a day after he switched over to the rebel camp led by caretaker Chief Minister O Panneerselvam, and appointed former minister K A Sengottaiyan in his place.

Sengottaiyan was relieved as the party's Organisation Secretary, a post to which he was appointed last week.

Sasikala urged the party workers not to have any truck with Madusudanan and said they should extend their cooperation to Sengottaiyan.

Giving a major boost to the rival camp, Madusudanan yesterday extended his support to Panneerselvam, saying he wanted to "safeguard" the party.

"To protect AIADMK, everybody should join hands with OPS (Panneerselvam)," he had said.

Sasikala had removed Panneerselvam from the Treasurer post immediately after his revolt, but he has maintained that being a temporary general secretary, she does not have the powers to appoint or remove party functionaries. Insisting that he continues to be the treasurer, Panneerselvam has written to banks not to allow anybody else to operate the party accounts without his consent.

Sasikala had appointed another senior leader Dindigul C Srinivasan as the treasurer.

Hitting back at Sasikala, Madusudanan has written to the poll panel urging it to not to recognise her as AIADMK general secretary, saying she was not elected to the post as per party by-laws.

Madusudanan told reporters about the letter shortly before he was sacked from AIADMK by Sasikala for "acting against the party".

Asserting that only cadres can elect a general secretary as per party rules, Madusudanan said he had asked the EC not to recognise Sasikala as party chief.

Expelled AIADMK Rajya Sabha member Sasikala Pushpa has already petitioned the EC against the election of V K Sasikala, saying it was not done as per procedure and the EC has sought the party's response to it. .