BJP demands JPC probe into IPO scam

New Delhi, Mar 9: The Bharatiya Janata Party (BJP) today demanded a probe by a Joint Parliamentary Committee (JPC) into the multi-crore Initial Public Offering (IPO) scam and warned that it was ''spreading across'' and should be investigated.

Senior party leader Yashwant Sinha, during his speech on the 2006-2007 Budget proposals in the Rajya Sabha, said 53 reportedly ''tainted'' IPOs had ''manipulated'' and applied for Rs 100 crore worth of fictitious shares and had even managed to corner shares worth Rs five crore.

''It is scam which is spreading across...we are demanding that a Joint Parliamentary Committee be appointed to look into the scam,'' he added.

Mr Sinha, a former Finance Minister in the then NDA government, tore through various Budget proposals, presented by Finance Minister P Chidambaram on February 28, saying the government had reduced tax on 'Pasta' (Italian dish), soft drinks and ice-cream and had increased on walking sticks.

Elaborating on proposals for various departments and schemes, Mr Sinha said primary product prices had gone up from one to five per cent which would increase inflation.

He said the softening of interest rates during the past five years had led to a ''rebellious'' impact. He cautioned that if interest rates hardened, it would have a 'deleterious impact' on the economy.

Pointing out a ''significant'' jump in Gross Domestic Savings between 2002 and 2004, which was a result of Household Savings, he said the GDS had reached an all-time high in 2003-2004. But in the first year of the UPA government, these had dropped to 22 per cent.

''If the Gross Domestic Savings in the household sector continue to decline, it will not be good for the economy,'' he said.

Expressing concern at the ''decline'' in the industrial production, Mr Sinha said it would have to be seen if it was a temporary phenomenon or a trend. ''I don't see India having entered a virtuous circle, as claimed by the Finance Minister in his budget speech,'' Mr Sinha added. Referring to the country's Foreign Exchange Reserves, the former Finance Minister said this was the first time in recent years that FOREX reserves were declining.

The Current Account Deficit was also ''nothing to be proud of'' he said, adding something should be done urgently to arrest that.

Mr Sinha lashed out at the Government on various fronts, including water, irrigation, agriculture, health, education, highway project and others.

''I can't share the Finance Minister's claim that he is focused on agriculture...there is no mention of Farm Insurance Income Scheme.'' About irrigation, he said of the government's claim that 500,000 water bodies all over the country would be renovated to be connected with agriculture, only 20,000 had been identified so far.

About the setting up six AIIMS-like hospitals in various parts of the country, Mr Sinha accused the government of not being serious in the matter and warned that people would start agitation if this project was abandoned.

''We will not allow the government to abandon the project...'' he added.

In the case of Sarva Shiksha Abhiyan, for which people paid a two per cent cess, the BJP leader demanded to know the fate of the cess collected during the past two years.

''What has happened to the cess collected during the past two years. How much money has been accrued through the cess to the allocation for the Kosh (funds for the Abhiyan),'' he added.

Mr Sinha rubbished the claims of the government on construction of highways under the NHDP, saying the project was started by the NDA government even after it was ''scoffed at'' for impracticability. There was no equipment which had to be imported, land had to be acquired, funds had to be arranged. There were many problems, he said.

He also protested against the removal of pictures of the then Prime Minister Atal Bihari Vajpayee, who had given birth to the project, from various places and billboards on highways.

He criticised the government's Bharat Nirman Project, saying it was a project which had been started by ''clubbing together'' six different projects.

On the issue of Housing, Mr Sinha said it (housing) was a ''revolution'' which the NDA government had unleashed. Now housing was in danger.

Lauding the General Budget, Janardhan Poojary(Cong) said there was a buoyancy in the Indian economy and the growth is high at 7.5 per cent. Compared to Japan(2 per cent), Singapore (3.9 Per cent), Sweden (3 per cent), the UK (1.9 per cent) and the US (3.5 per cent), the Indian scenario is much higher. Only China he said has a growth rate of nine per cent.

He said the Finance Minister has submitted a growth-oriented budget and paved the way for a 8 per cent growth. In the Budget there is no change in the tax structure but it has increased resources.

Only grey area is the power sector, a lifeline of a developing economy, whose growth is less than the GDP growth. He said the FM should look into it.

Brinda Karat, CPI(M), criticised the Budget, stating that ''it belies the expectations of the people''.

She said the FRB Act is an instrument to put forward WTO and World Bank programmes. She said the allocations are extremely inadequate and asked how far genuine efforts have been made for allocations in the crucial sectors, she asked.

She pointed out that the crucial aspects for the development of farmers have not been taken up. She asked what the Budget offered to stop the suicides of farmers. ''There is nothing for debt relief for farmers,'' she said.

There is no compassion for farmers, she added. There has also been an enormous foodgrain mismanagement and the procurement policy is faulty.

She said the unemployment rate is increasing and the Budget does not talk about it. The Budget also does not offer anything for the unorganised sector, she pointed out.

Ms Karat said in the small savings scheme, the cutting off of the 10 per cent bonus on small saving after six years is a negative move.

She asked why children and women have been clubbed together in the budget.

'There is lot of compassion for farmers but passion for corporates,'' Ms Karat said.

UNI