MUMBAI: India’s central bank governor warned Wednesday that cryptocurrency markets risked causing the next global financial crisis, saying the recent collapse of FTX was proof of the sector’s “inherent risks”

The comments close out a challenging year for India’s millions of crypto owners, who are already reeling from a global market collapse and steep domestic taxes.

“Unlike any other product, our main concern about crypto is that it doesn’t have any underlying (value) whatsoever,” Reserve Bank of India governor Shaktikanta Das said at an industry event.

“Our view is that it should be prohibited because … if you try to regulate it and allow it to grow, please mark my words: the next financial crisis will come from private cryptocurrencies.”

Cryptocurrencies have been under the scrutiny of Indian regulators since first entering the local market nearly a decade ago, with a rise in fraudulent transactions leading to a central bank ban in 2018.

India’s Supreme Court lifted the restrictions two years later and the market surged, backed by burgeoning local trading platforms and glitzy celebrity endorsements.

But the introduction of a 30 percent tax on profits from trading “private currencies” this year has resulted in trading volumes shrinking to a tenth of their previous size.

A sharp fall in the prices of leading tokens like bitcoin — dubbed a “crypto winter” — has wiped out more than $2 trillion from their global market value since its peak of $3 trillion in November 2021, further spooking traders.

The sudden collapse of FTX — a cryptocurrency exchange worth $32 billion before it filed for bankruptcy last month — and US fraud charges against its one-time billionaire founder Sam Bankman-Fried has intensified scrutiny of the sector.

Das said the fall in crypto prices and recent developments around FTX validated his long-held view that cryptocurrencies have “huge inherent risks for our macroeconomic and financial stability”.

The Reserve Bank of India this year introduced its own digital rupee based on blockchain technology, intended to bring down the costs of commercial transactions as the Indian economy becomes less reliant on paper currency.

Last month, India’s Prime Minister Narendra Modi called for increased regulation of private currencies to stamp out terror funding.

Modi also said last year that bitcoin presented a risk to younger generations and could “spoil our youth” if it ended up “in the wrong hands”.

BENGALURU:  Members of the Karnataka State Backward Castes Federation are planning a dharna in front of Suvarna Vidhana Soudha in Belagavi on December 26, opposing the demand of Panchamasali Lingayats seeking 2A reservation

The Federation has asked members from across the state to join the Soudha protest. “When Panchamasalis utilise the quota under 3B and also have the scope to use 50 per cent general quota, why are they eyeing 2A category, which is shared by 104 castes. We will protest if the government tries to include forward castes in the backward classes quota category,” said Federation General Secretary Ennegere R Venkataramaiah.

The protests will be across the state if the quota category is changed without any scientific study, he said, urging the government to release the socio-economic survey conducted by a committee headed by the then Karnataka Backward Classes Commission Chairman H Kantaraju. Karnataka has been conducting scientific studies before recateogorising quota. But well-to-do communities have been grabbing quota under Category 1 and 2 for political reasons, alleged Federation president KM Ramachandrappa.

“Under category 1, there are 95 castes for 4 per cent quota, while 2A has 15 per cent quota for 104 castes which is why Panchamasalis are trying to get that tag. In fact, it should go to the community of artisans, who have been deprived. Without a scientific study, reclassification of quotas is wrong,” said former chairman of the backward classes commission Dr CS Dwarakanth.

“We will felicitate Chief Minister Basavaraj Bommai on Thursday if  he announces the reservation. Otherwise, we will lay siege to Suvarna Soudha,” said Basavajaya Mrutyunjaya Swami, seer of Panchamasali Peetha, at the ‘Virat Panchashakti Panchamsali Samavesh’ in Bastawad village near Suvarna Soudha on Wednesday.

DHARWAD: Dharwad district administration commenced work on shifting of Hazrat Syed Mahmood Shah Qadri Dargah located near Bairidevarkoppa in Hubballi on Wednesday. Prohibitory orders under Section 144 were clamped and the work was undertaken amid tight security.

The dargah is being shifted for the widening of the road under the Hubballi-Dharwad Bus Rapid Transit System (BRTS), an initiative of the state government. The road, which is 36-metre wide, will now be widened to 44 metres.

The project was started in 2010, but the Muslim community leaders moved a court in 2016 and brought a stay order. However, the court has now directed the authorities to commence the work. As many as 250 personnel from the police department and Rapid Action Force were deployed in the area. Police personnel from districts like Karwar, Haveri and Koppal were brought in.

The shifting of the dargah is being carried out by covering the entire area with giant sheets and cloth to block the view from the public. The permission for holding religious rituals was given before the commencement of the shifting work and five religious heads took part in the rituals. 

RANCHI:  Congress has issued showcause notices to seven of its leaders in Jharkhand, for violating the party discipline and demanding removal of state president Rajesh Thakur. These leaders include Alok Dubey, Dr Rajesh Gupta, Sadhu Charan Gope, Rakesh Tiwari, Sunil Singh, Lal Kishore Nath Shahdeo and Anil Ojha. 

The seven leaders had organized a meeting and demanded removal of state Congress president Rajesh Thakur, alleging him of working under the influence of former Jharkhand Congress in-charge RPN Singh, who has joined Bharatiya Janata Party (BJP).

“The disciplinary committee has also recommended the state president for suspension of all these leaders involved in the campaign,” said state Congress spokesperson Rakesh Sinha. They have been asked to submit their clarification within two weeks to the state Congress office.

According to Sinha, during the disciplinary committee meeting, the Congress leaders and workers were also given strict warning that those violating the party discipline will not be spared. The rebel leaders, however, denied of having received any such showcause notices and charged disciplinary committee of working under the influence of Rajesh Thakur. They also reiterated that they will continue with whatever programme was decided at the Monday meeting and ‘Jan Jagaran Abhiyan’ will be launched from Bokaro on its schedule time. 

LUCKNOW:  After the UP government ordered a survey of madrasas to ascertain their status, funding and infrastructure facilities being provided to students, the UP Madrasa Education Board (UPMEB) is contemplating a slew of proposals to spruce up the education system of Islamic institutions.

The UPMEB is considering the affiliation of postgraduate (Kaamil) and graduate (Faazil) courses of madrasas either to a state university or upgrading the degrees to a deemed university status to ensure wider recognition of the courses. Currently, UPMEB issues the postgraduate and graduate degrees of madrasas.

“The degrees which we issue to our students pursuing Kaamil and Faazil courses don’t have much acceptance outside this education system. So, we are now looking at upgrading the degrees either through affiliation with a state university or by getting the status of a deemed university. This will lend more meaning and wider acceptance to our degrees,” said UPMEB chairman Dr Iftekhar Ahmad Javed.

The proposal is significant as it comes after the controversial survey in which about 8,500 madrasas were found unrecognised.

Official sources said the proposal was a part of the initiative to provide wider acceptance to degrees of students affiliated with the State Madrasa Board. The Madrasa Board is also contemplating a code for uniforms for the madrasa students and providing madrasas an option of shifting the closure to Sundays from Friday. Currently, the madrasas observe weekly closure on Fridays. 

Madrasa Board’s proposal

•  Weekly closure to move from Friday to Sunday
•  Uniform for all students
•  Affiliation to state university or get a deemed university status

NEW DELHI: The National Commission for Women on Tuesday summoned Congress leader Ajay Rai over his “misogynistic” and “derogatory” remark against Union minister Smriti Irani.

The Uttar Pradesh Congress leader had on Monday said Irani only comes to her constituency Amethi to show “latkas” and “jhatkas”, an unflattering reference to dance moves that provoked a sharp response from the BJP.

“The National Commission for Women has come across several media reports on a controversial remark made by Congress leader Ajay Rai against Union Minister Smriti Irani,” the NCW said.

“The Commission has taken cognizance of the misogynistic remark made by Mr Rai. The remarks are outrageous and extremely derogatory and the Commission strongly condemns such statements. The Commission has scheduled a hearing in the matter and sent a notice to Mr Rai to appear before it on 28.12.2022 at 12 PM,” the NCW said in a statement.

Asked if Gandhi will contest the 2024 Lok Sabha elections from Amethi, Rai had told reporters, “It has been the seat of the Gandhi family. Rahul ji has been the Lok Sabha MP from there. So has been Rajiv (Gandhi) ji and Sanjay (Gandhi) ji, and they have served it.”

“Most of the factories in Amethi are on the verge of closure. Half of the factories in Jagdishpur industrial area are lying shut. Smriti Irani only comes, shows ‘latka-jhatka’, and leaves,” Rai, who is a regional chief of the party had said.

Currently, Amethi is represented in Lok Sabha by Union Minister for Women and Child Development Irani.

Responding to the statement, Irani said Rahul Gandhi and his mother Sonia Gandhi needed a new scriptwriter.

“You and Mummy ji need to get your misogynistic (misogynist) goons a new speechwriter,” the Union Minister for Women and Child Development had said.

RAIPUR:  Chhattisgarh’s sulking Congress leader TS Singhdeo, health minister in the Bhupesh Baghel-led ministry, has kept his chief ministerial hopes alive ahead of the Assembly polls due next year. On Tuesday, Singhdeo told the media that he is going to take some decisions “regarding his future” ahead of the polls, creating a flutter in the party circles. Singhdeo considers himself the CM-in-waiting ever since Rahul Gandhi reportedly gave him his word for a 2.5-year rotational arrangement with Baghel after the Congress came to power in the state in 2018. 

The CM aspirant said he would decide after holding discussions with party workers. To a question as to how he would convince his “disillusioned” supporters, he said his decision depended upon the workers’ views and the issues that lead them to work.

Last year, Singhdeo met Rahul Gandhi and other top leaders in Delhi who promised to “resolve the issue.” Yet nothing happened. On Tuesday’s remarks, the opposition BJP said Singhdeo’s betrayed signs of frustration. “Such a statement implies that there is a policy of going solo with no teamwork existing in the government. Earlier too, a senior minister had publicly expressed his annoyance over the work carried out in his area. It clearly shows what’s going on within the Congress”, said Narayan Chandel, the leader of Opposition.

However, CM Bhupesh Baghel found nothing wrong in what his senior cabinet colleague said. “Everyone has a right to decide about their future. We also take a decision after consulting party workers. His (Singhdeo) statements have been misinterpreted,” Baghel said. Senior Congress leaders maintained that the party never talked about the 2.5-year formula. “After Singhdeo’s comments, it’s going to be a wait-and-watch situation in Chhattisgarh,” said an observer. 

MYSURU: Slain forest brigand Veerappan’s aide Gnanaprakash was released on bail from the Mysuru Central Prison on Tuesday.

The 63-year-old Gnanaprakash was released on bail from prison at around 8.30 am. The prison authorities had received the court order on Monday evening and based on the court’s direction, he was released on Tuesday morning. 

He will be visiting his native Sandhanapalya in Hanur taluk in Chamarajanagar district after spending 28 years in jail.

The Supreme Court granted interim bail to Gnanaprakash on November 26. Based on the order, advocate PP Baburaj had filed an application at the Chamarajanagar District and Sessions Court which ordered for the release of Gnanapakash furnishing surety of two persons and a Rs 5 lakh personal bond.

Gnanaprakash was not in the pink of his health for the past few years. Recently, he was detected to suffer from lung cancer during a medical checkup in KR Hospital. So he was sent for medical examination to Victoria Hospital and later Kidwai Cancer Hospital in Bengaluru for confirmation.  

Mysuru Central Prison KC Divyshree told TNIE that Gnanaprakash was released after SC awarded interim bail.

“The SC will hear the case in February 2023 where it will decide whether to continue the bail or surrender,” he said.

Divyashree said that while two Simon and Bilavendran died due to age-related ailments, Gnanaprakash was suffering from ill health. Gnanaprakash was given any work in the jail due to health issues while Meesekara Madaiah works in the handloom unit.

Gnanaprakash along with Simon Anthonyappa, Meesekara Madaiah and Bilavendran were arrested for the killing of 22 policemen and injuring many others in the landmine blasts at Palar on the border of Karnataka and Tamil Nadu on 9 April 1993.

The four were part of the 124 persons who were arrested in connection with the case and booked under the Terrorist and Disruptive Activities (TADA) Prevention Act in 1994. While 117 were acquitted, seven persons were sentenced to life imprisonment. Among them, the Supreme Court ordered death sentences to these four in connection with planting the mine.

The four who were housed in Mysuru Central Prison were shifted to Hindalga Central Prison in Belgaum in 2004 after SC awarded the death sentence. However, in 2014, the SC commuted their death sentence to life imprisonment. All four were shifted back to Mysuru Prison.

While Simon died in 2019, Bilavendra died in 2020 due to age-related ailments. Advocate Venugopal, who represented the four, had urged the government to release Madaiah and Gnanaprakash, considering their age and illness.