"For a government with such a massive mandate, the Narendra Modi government is signalling a financial desperation," wrote R Jagannathan. "The recent budget raised taxes on the well-off (those earning above Rs 2 crore a year, including foreign portfolio investors who had routed their investments through trusts), not to speak of import duties on a range of items." The government wants the Reserve Bank (RBI) to transfer its reserves to it, for which a panel under former Governor of RBI Bimal Jalan has been set up. The government also wants the Securities and Exchange Board of India (SEBI) to transfer 75% of its surplus funds to it which becomes "a kind of additional tax on the market participants". The terrible outcome of extreme tax terrorism was recently exemplified when founder of Cafe Coffee Day VG Siddhartha went missing on the evening of 29 July after telling his driver to wait near a bridge over Netravati River in Karnataka. He left behind a letter which says that he was under tremendous financial pressure from lenders and had been harassed by tax officials. "There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taken possession of our Cafe Coffee Day shares, although the revised returns have been filed by us. This was very unfair and led to a serious liquidity crunch." In a hostile takeover, Larsen and Toubro Ltd (L&T) took over Mindtree in June. VG Siddhartha's death is confirmed. His body was found at 6.50 Wednesday morning from the Netravati River. Politicians of all colors have rushed forward with crocodile tears messages. "According to the 306 section of the Indian Penal Code, a person abetting the suicide of another person shall be punished with imprisonment of up to 10 years and shall also be liable to fine. Abetting a suicide is a non-bailable charge." In India politicians and civil servants are above the law. In UP a rape victim set fire to herself outside the house of the Chief Minister because the police refused to register a case against the rapist who is a Member of the Legislative Assembly (MLA) of the ruling BJP party. Instead of arresting the rapist the police arrested her father who died in police custody in suspicious circumstances. The victim and her lawyer are fighting for their lives after a truck rammed the car she was traveling in. In Goa, Atanasio Monserrate, accused of raping a child, has defected to the BJP. Earlier, he had won election as a Congress candidate. His wife has been made a minister, along with another defector Chandrakant Kavlekar, who is accused of running an illegal betting syndicate. "Despite articulating a whole lot of lofty economic goals and social objectives, the Modi government has no elevating vision on the role of the state promoting growth." Of course, he has. Increase power by bribing voters and defectors. That's why high taxes and the need to loot the RBI and SEBI. Simple really.
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