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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Police form SIT, arrest four

Achalpur Municipal Council serves ‘bulldozer justice’ Mumbai: Amid growing public outrage in Vidarbha, police in Amravati arrested three associates of the prime accused, 19 year old Ayan Ahmed Tanveer in the scandal involving recording and circulation of obscene videos of young women. The police also formed a 47-member Special Investigation Team even as authorities say preliminary inquiries point to a large cache of material and possible involvement of minors, prompting a rapid escalation of...

Police form SIT, arrest four

Achalpur Municipal Council serves ‘bulldozer justice’ Mumbai: Amid growing public outrage in Vidarbha, police in Amravati arrested three associates of the prime accused, 19 year old Ayan Ahmed Tanveer in the scandal involving recording and circulation of obscene videos of young women. The police also formed a 47-member Special Investigation Team even as authorities say preliminary inquiries point to a large cache of material and possible involvement of minors, prompting a rapid escalation of the probe and local administrative action that included partial demolition of the accused’s house. Police on Wednesday took into custody Uzair Khan Iqbal Khan (20), Mohammad Saad Mohammad Sabir (22) and Tabrez Khan Taslim Khan (24) after Ayan’s arrest on Monday. Court remand for the newly arrested trio runs until 21 April as investigators intensify questioning. Officials have so far identified eight victims, but local claims and media reports suggest the scandal may involve far larger numbers — with some sources alleging up to 180 girls and as many as 350 videos circulating online. A cyber team is working to recover deleted files and trace the full extent of distribution. Unauthorised Structure The Achalpur Municipal Council deployed a bulldozer to raze part of the accused’s house, citing unauthorised construction; officials said the timing was coincidental to the probe, but the action has added to tensions in the area. Police have formed a 47 member Special Investigation Team to coordinate forensic, cyber and field inquiries and have appealed to the public not to share any images or clips, warning that doing so is a criminal offence. Female officers are assisting in victim identification and interviews to ensure sensitivity and confidentiality. Investigation Focus Investigators have seized numerous objectionable videos from the prime accused’s phone and are attempting to match faces and locations to identify victims. The accused have been booked under relevant sections of the Bharatiya Nyaya Sanhita, the POCSO Act where minors are involved, and provisions of the Information Technology Act for non consensual recording and distribution. Police stress that no formal FIRs from victims are required to pursue the case and have offered the option of filing Zero FIRs to protect identities and fast track action. The scandal has provoked a political storm in Amravati. Opposition leaders have demanded a high level probe and some local groups have called for shutdowns, prompting heightened security. While there have been claims about the accused’s political links, party officials say he has been expelled; nevertheless, the episode has intensified scrutiny of law and order and online safety for young women. Community leaders and activists are pressing for swift arrests of all accomplices and for systemic measures to prevent similar crimes.

Repo Cuts, Liquidity Surge

The RBI’s bold policy pivot delivers liquidity, confidence and a nudge toward Viksit Bharat.

For the third consecutive week, the Reserve Bank of India (RBI) has dominated the headlines. It first released a record surplus transfer to the government, then followed up with a strong annual report despite global uncertainties. Most recently, the RBI, in its Monetary Policy Committee (MPC) meeting, surprised analysts with a sharp 50-basis-point cut in the repo rate and an even more significant 100-basis-point reduction in the Cash Reserve Ratio (CRR). Much like a perfectly timed cover drive by Virat Kohli, these moves are precise, strategic, and reinforce India's economic resilience.


The MPC was established under the Finance Act of 2016, replacing the earlier system where the RBI Governor solely made policy decisions. It consists of six members—three from the RBI, including the Governor as chairperson, and three appointed by the government. Its main role is to keep inflation within the target range of 4 percent, with a 2 percent tolerance in either direction. Decisions are made by majority vote, with the latest one passed by a 5:1 majority.


The MPC uses key policy tools like the repo rate and CRR to manage inflation and support economic growth. The repo rate is the RBI’s lending rate to commercial banks and serves as the benchmark for interest rates across banks and NBFCs. The CRR is the portion of demand and time liabilities that banks are required to maintain with the RBI. By adjusting these levers, the MPC regulates liquidity in the financial system, promoting long-term economic expansion.


The 50-basis-point repo rate cut signals policy decisiveness over gradualism, aiming to boost monetary transmission and market confidence. A phased 100-basis-point CRR cut from September 6, 2025, will release Rs. 2.5 trillion, adding to the Rs. 7.4 trillion already infused this year. Together, these steps underscore the RBI’s push to sustain credit flow and economic growth. Lower rates reduce lending costs, lift bond markets, and ease borrowing for businesses and governments—key levers the RBI is banking on to drive consumption and investment.


Since adopting inflation targeting in 2016, the MPC has consistently ensured price stability through timely interventions. Encouraged by the rebound in economic momentum in H2 FY25 and normal monsoon expectations, the RBI revised its FY26 inflation forecast down to 3.7 percent from 4 percent, citing subdued food prices and stable core inflation. April 2025 inflation stood at 3.2 percent, the lower end of the tolerance band, allowing room for rate easing to boost GDP growth without breaching the inflation threshold.


The MPC’s measures aim to sharply cut borrowing costs, making loans more affordable across sectors. With the repo rate at 5.50 percent, home, auto, personal, and corporate loan rates are set to fall, spurring credit demand, investment, and consumption. Rate-sensitive sectors like real estate, automobiles, and consumer durables stand to gain, especially in mid- and affordable housing.


The phased 100-basis-point CRR cut will inject Rs. 2.5 trillion into the system, boosting banks’ lending capacity and easing funding costs—particularly aiding MSMEs and businesses with floating-rate loans. Lower interest costs improve profitability and global competitiveness.


While these steps bolster investor and business confidence, they may reduce Fixed Deposit returns, pushing savers toward riskier assets like mutual funds and equities. This is a boon for markets, but a concern for risk-averse retirees.


Uncertainty over the US Federal Reserve's stance may impact the rupee-dollar exchange rate. A weaker rupee could drive up crude oil import costs, feeding into inflation. However, with record-high forex reserves, the RBI is well-equipped to intervene in the currency markets and contain inflationary risks.


Increased liquidity may raise demand and inflationary pressures. Yet, despite Rs. 7.4 trillion being injected since January 2025, April inflation remains at historic lows. The RBI’s phased CRR cut ensures a controlled liquidity flow, avoiding sudden spikes and preserving macroeconomic stability.


The RBI has shifted its policy stance from ‘Accommodative’ to ‘Neutral,’ signalling greater flexibility in response to economic changes. The Governor has assured that incoming data will be closely monitored, with timely interventions as needed. While maintaining an optimistic outlook on India’s prospects, the RBI remains committed to agility and vigilance.


The full impact of these policy measures will take time to play out, but the RBI remains confident in its 6.5 percent GDP growth projection. Should conditions align, further moves toward a 7 percent growth trajectory could follow. The central bank’s proactive approach remains a cornerstone of India’s march toward the Viksit Bharat vision.


(The writer is a Chartered Accountant with a leading company in Mumbai. Views personal.)

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