[NEWS OF THE DAY]

US House approves sanctions waiver to India after S-400 missiles deal with Russia

The United States House of Representatives approved Indian-origin Congressman Ro Khanna’s amendment to the National Defence Authorization Act (NDAA) on Thu, paving the way for an India-specific waiver for the CAATSA sanctions. The Countering America’s Adversaries Through Sanctions Act (CAATSA) became a sticking point in India-US ties after New Delhi inked a deal to secure the S-400 missile defense system from Moscow, amid the Russia-Ukraine war. Washington had been mulling whether to apply or waive sanctions on India over the deal. Enacted by the US Congress in 2017, CAATSA provides for punitive actions against any country engaged in transactions with Russian defense and intelligence sectors. The amendment to the NDAA was passed by voice vote as part of an en bloc amendment during floor consideration of the NDAA. While it doesn’t equal a decision on CAATSA, it urges the administration to grant a waiver only to India. Afterward, Ro Khanna said the move will further strengthen US and India’s defense partnership. (here)US House nod is one step in a long process, Biden has the final call- A legislative amendment seeking CAATSA waiver for India for defense trade with Russia was passed by a voice vote in the US House of Representatives Thu.

Factbox: Three frontrunners in the race to become Sri Lanka’s next president

Reuters – PM Ranil Wickremesinghe sworn in as interim president; Parliament to elect new President on July 20. A 6-time prime minister, Wickremesinghe, the leader of the main opposition party Sajith Premadasa, and a journalist-turned-politician from the ruling party Dullas Alahapperuma are vying to become Sri Lanka’s next president after the incumbent Gotabaya Rajapaksa fled the country this week. Sri Lanka’s parliamentary speaker will convene the legislative body after receiving Rajapaksa’s official resignation and its 225 members will vote to elect a new president, likely next week. The winning candidate must secure a simple majority within parliament, but also gain the confidence of hundreds of thousands of Sri Lankans who have participated in the protest movement – known as the “Aragalaya”, or “struggle” in Sinhala – that led to Rajapaksa’s ouster. (here)

India, China have to solve border issues through talks: Dalai Lama

Tibetan spiritual leader the Dalai Lama on Fri said that India and China must solve the border dispute through talks and peaceful means. The remarks by the Dalai Lama come ahead of 16^th round of Corps Commander-level meetings between India and China, expected to start on July 17, in the backdrop of a stand-off between the two countries along the Line of Actual Control in the eastern Ladakh sector and the Galwan clashes of 2020. The 14^th Dalai Lama today left for Ladakh after a stopover in Jammu where he had arrived on Thu from his base in Dharamshala. Earlier talking to reporters in Jammu, he said that the majority of people in China realize that he is not seeking independence within China but meaningful autonomy and preservation of Tibetan Buddhist culture. The Tibetan spiritual leader was responding to a question on China objecting to his visit to Ladakh. The Dalai Lama also said that more and more Chinese are showing interest in Tibetan Buddhism. (here)

India’s current account deficit expected to deteriorate in FY23: Finance Ministry report

India’s current account deficit, meaning a shortfall between the imports and exports, is expected to deteriorate in 2022-23 if recession concerns do not lead to a sustained and meaningful reduction in the prices of food and energy commodities, the Ministry of Finance said in its latest Monthly Economic Review report. Softening of global commodity prices may put a leash on inflation, but their elevated levels also need to decline quickly to reduce India’s current account deficit. A sudden and sharp surge in gold imports amid wedding season, it said. The country’s trade deficit widened to USD 45.18 billion in Apr-Jun 2022 period as compared to USD 5.61 billion recorded in the corresponding period of last year. To alleviate the impact, the govt recently hiked the customs duty on gold from present 10.75% to 15.0%. The widening of the current account deficit has depreciated the Indian rupee against the US dollar by 6% since Jan of 2022 and is on the brink of touching the 80 mark. A depreciation in the rupee typically makes imported items costlier. India’s forex reserves, in the 6 months since Jan 2022, have declined by USD 34 billion. (here)

Ripudaman Singh Malik, acquitted in 1985 Air India bombing, shot dead in Canada

Canada-based Sikh leader and businessman Ripudaman Singh Malik, who was acquitted in the 1985 Air India bombing, has been shot dead in Surrey, B.C, his family said. As per the report published in Global News, the RCMP received a call informing them of gunfire in Surrey B.C. on Thu at around 9.30 am. Upon reaching the spot the police found a man suffering from several gunshot wounds and succumbed to his injuries on the scene. CNN-News18 has reported citing the intelligence note, which hints at concerted efforts to use “unfair” means to scare voices that dare to align with India. There are doubts about whether the case will get a fair investigation, cited source. Malik was the founder of the Khalsa Credit Union and Khalsa School. He was soon to start Khalsa College for which he had invited Akal Takht Jathedar. Three weeks ago, the Jathedar was to visit him for 3 days to lay the foundation of the Khalsa College. But Malik’s critics started to threaten with gherao. The visit was then canceled. Malik was clear not to allow the Jathedar to use his school or college stage to speak against India. After the visit was canceled following threats by a group of Khalistanis, Malik spoke on a talk show with journalist Kuldip Singh on Sanjha TV and exposed how these anti-India elements are also enemies of Sikhs. (here)

[NATIONAL]

At Bali meet, FM underlines the need to improve the effectiveness of the G20 Common Framework

Finance Minister Nirmala Sitharaman on Fri underlined the need to improve the effectiveness of the G20 Common Framework. Sitharaman was speaking at the third session on International Financial Architecture in Bali, Indonesia, which is hosting the third G20 Finance Ministers and Central Bank Governors meeting. She also commended the work of an expert panel on the Multilateral Development Bank and suggested developing a roadmap for implementing its recommendations. Sitharaman attended the Sustainable Finance for Climate Transition roundtable and underlined the need for blended finance and leveraging private capital to achieve sustainable development goals. Earlier today the Minister participated in the 2^nd session of the G20 Finance Ministers and Central Bank Governors meeting where she shared her views on the group’s health agenda, including pandemic, preparedness, and response mechanisms. (here)

Defense minister Rajnath Singh launches stealth frigate

Defence Minister Rajnath Singh launched P17A stealth frigate Dunagiri, built by PSU Garden Reach Shipbuilders and Engineers, onto the river Hooghly in Kolkata on Fri. P17A ships are guided-missile frigates. In his address before the launch, Singh said that such launch of ships by Indian shipyards signifies the advancement of self-reliance of the country. He said that India is doing as much as possible to be with neighbor Sri Lanka in its time of crisis. (here)

83 government officers arrested by Haryana vigilance since Jan for ‘accepting’ bribe

Eighty-three govt officials including 10 gazetted ones were arrested by Haryana Vigilance Bureau since Jan this year for ‘accepting’ bribes. The total arrests reached 91 with the arrest of eight more private individuals. Among the officials arrested include 18 from the revenue department, 23 from police personnel, 15 from the power department, 8 from urban local bodies, and 3 each from the excise and taxation department among others. The accused were caught red-handed while taking bribes between Rs 5,000 to Rs 5 lakh in separate cases, according to a report in Hindustan Times. (here)

Chinese companies facing tax evasion charges may benefit from the recent EY tax ruling

The Income Tax Appellate Tribunal (ITAT) recently admitted a plea by British firm Ernst & Young against a demand of Rs 6.6 crore in taxes from the Income Tax department. The international taxation division of the I-T department issued the tax notice on the company’s foreign remittances of 4 years, which the department termed as “royalty paid to the parent company”. The I-T department taxed E&Y Global under 3 heads: software charges, global technology charges, and global wide area network connectivity charges, according to ET. The company contested the tax notice, stating the payments received by it from Indian members first were only reimbursements in lieu of costs incurred and not therefore not taxable under the Income Tax Act and the Double Taxation Avoidance Treaty between India and the UK. The tax notice was upheld by an Authority of Advance Ruling (AAR), but the Delhi High Court in Dec 2021 ruled that payments received for providing computer software to members firms did not account as royalty, and were not liable to be taxed as such. Legal experts told ET that the ruling may have consequences for the local units of Chinese companies, facing tax scrutiny by Indian agencies. (here)

‘If children can go to school at 7 am, SC can begin hearing cases at 9 am’

If children can go to school at seven in the morning, why cannot judges and lawyers start their day at 9 am, Supreme Court judge Justice UU Lalit remarked on Fri. Justice Lalit said if the courts can start early, it can finish the day’s work early and judges would get more time in the evening to read the case files for the next day. (here)

After ‘unparliamentary’ words list, dharnas, fast, strikes banned in Parliament complex; ‘routine order’ says LS Secretariat

A day after the Lok Sabha Secretariat’s booklet on unparliamentary words triggered furor, the Parliament has now banned demonstrations and dharnas within the Parliament premises. In a Parliamentary bulletin, PC Mody, Secretary General said that the members cannot use the Parliament House for performing any religious ceremony. “Members cannot use the precincts of the Parliament House for any Demonstration, Dharna, Strike, Fast, or to perform any religious ceremony (sic),” the bulletin, issued on July 14 read. Clarifying the matter, the Lok Sabha Secretariat said that such a process is a routine one, and guidelines are issued before every session of the Parliament. “Session begins in a few days… Now, we will not be allowed to use these basic words while delivering a speech in Parliament: Ashamed. Abused. Betrayed. Corrupt. Hypocrisy. Incompetent. I will use all these words,” O’Brien said. (here)

Dispute between Assam and Arunachal Pradesh restricted, will not hinder developmental work: Himanta Biswa Sarma

Assam CM Himanta Biswa Sarma on Fri spoke about the prolonged border dispute between Arunachal Pradesh and Assam and observed it has reduced significantly. Sarma noted that now only 86 villages are in dispute between the two states as compared to 123 before. The Assam CM went on to call it a ‘historic’ achievement. The Assam CM further that the Namsai Declaration will be sent to the government of India for further action. Himanta Bswa Sarma also assured that the dispute resolution between the two states will not hinder the development processes on the ground. “Till then, development activity, school, education, health, roads and status quo will continue. We won’t bother people. We will try to accomplish what HM Amit Shah said – that this issue will be resolved within this year,” Sarma said. (here)

[NEIGHBORHOOD]

Sohrab Goth protest turns violent in Karachi; commuters come under attack

A man was shot dead and several vehicles were set on fire and ransacked during a protest by hundreds of people on Superhighway at Al-Asif Square in Sohrab Goth on Thu evening following the recent killing of a man in Hyderabad. During the protest on the highway, incidents of firing and arson occurred in which a bus was set on fire and some vehicles were ransacked, said police and witnesses. However, the Superhighway was cleared to traffic when the police took action after the negotiations failed to peacefully disperse the protesters. Police said 25 people were taken into custody. Earlier, Dawn reported citing city police that around 2,000 people had blocked both tracks of the Superhighway near Sohrab Goth. (here)

China will agree to $4 billion aid for Sri Lanka ‘at some point’ – Bloomberg News

Reuters- Sri Lanka is continuing negotiations with China for as much as $4 billion in aid and is confident Beijing will agree “at some point,” Bloomberg News reported on Fri, citing Sri Lanka’s ambassador to China. Colombo is asking China for a loan of $1 billion to repay an equivalent amount of Chinese debt coming due this year, Palitha Kohona said in an interview with Bloomberg. Sri Lanka is also seeking a $1.5 billion credit line to pay for Chinese imports and activation of a $1.5 billion swap, Kohona added. (here) Sri Lanka’s Supreme Court today (Fri) issued an interim order preventing former PM Mahinda Rajapaksa and former Minister Basil Rajapaksa from leaving the country without the court’s permission until July 28^th reported Sri Lanka’s DailyMirror.Sri Lanka economic crisis: IMF still in touch with govt officials-The International Monetary Fund (IMF) is still in contact with officials at technical levels within the Sri Lankan government and hopes to be able to resume discussions with higher-level officials, an IMF spokesman said on Thu.

Chinese bank scandal customers struggle to register for scheme to pay back the money

The launch of a scheme to repay victims of one of China’s biggest banking scandals was hit by a series of problems when it launched on Friday as many customers found themselves unable to register their details online. However, many said they had succeeded in registering and the first payments had started arriving. Hundreds of thousands of depositors across China were affected by the scandal, involving four rural banks in Henan province. Savings in the affected banks were frozen in April, prompting repeated protests. Customers who have deposited more than 50,000 yuan in the banks are still pushing to get their money back, but have so far received no guarantees they will be repaid. (here)

EU, Southeast Asia to hold first full summit amid security fears

Reuters – EU and Southeast Asian nations will hold their first full summit in Dec, a sign that the two blocs are looking for closer ties amid concerns over security threats from China and Russia, Reuters reported citing officials. The summit, to be held in Brussels on Dec. 14 but yet to be publicly announced, is seen as a sign of “increasingly close relations in the current geopolitical context”, one EU official said. Previous meetings between the 27-nation EU and the 10-country Association of Southeast Asian Nations (ASEAN) have usually been attended by leaders holding the temporary presidency of the blocs. The EU is seeking to boost its clout in the region amid growing concerns there about China and the impact of Beijing’s tensions with Washington, a second EU official said. (here)

Soldier martyred, 5 terrorists killed in Ziarat recovery operation: ISPR

A Pakistan Army soldier was martyred after terrorists opened fire on security forces during an operation in Balochistan’s Ziarat district to recover a civilian taken hostage, the military’s media affairs wing said on Fri. The civilian, Omer Javed, was abducted along with his cousin, Lt Col Laiq Baig Mirza, near Warchoom, Ziarat, as they were returning after paying a visit to the Quaid’s residency. Lt Col Mirza was martyred by the terrorists as they were fleeing from security forces. In a statement on Fri, the Inter-Services Public Relations said that a terrorist hideout was identified and cleared by security forces during the ongoing recovery operation. (here)

China-Pakistan nexus contradicts rhetoric of fighting terror

China and Pakistan have always bragged that they are fighting terrorism on multiple fronts, however, Beijing’s recent move to protect terrorist Abdul Makki at the UN contradicts the rhetoric of fighting international terrorism. Valerio Fabbri, writing in Geopolitica.info said that as a member of the Security Council with veto power, China in a sense acted as a proxy for Pakistan. This move sends a signal that China is prepared to contradict its rhetoric of fighting international terrorism and may protect it. Both China and Pakistan are obstructing the cause of the international fight against terrorism, reported Fabbri. Moreover, the latest manifestation of the axis seems to be coming from the handling of one most-wanted terrorist, Sajid Mir, who was reported to be dead until he was arrested at the end of June. (here)

China’s protection for Makki puts Pak’s effort to exit the FATF grey list at risk

The recent move of China to block the joint proposal by India and the US to list Pakistan-based terrorist Abdul Rehman Makki as a global terrorist under the Al-Qaeda Sanctions Committee of the UNSC could jeopardize Pakistan’s efforts to come out of the grey list. Makki, the deputy chief and head of political affairs of the Jamaat-ud-Dawa or the LeT, is the brother-in-law of Lashkar-e-Taiba (LeT) chief and 26/11 mastermind Hafiz Saeed. He has occupied various leadership roles within LeT, a US-designated Foreign Terrorist Organization (FTO) and has also played a role in raising funds for LeT operations. He has been alleged to be involved in several major attacks against India including the 2008 Mumbai attacks. He has also been a part of the proselytizing, fundraising, and recruiting youth from J&K. (here)