SAIL, Essar hike prices of flat steel prodcuts, take advantage of safeguard duty 

Photo: SAIL

KOLKATA,2 Oct, 2015: Major steel producers have announced a price hike on flat steel products, taking advantage of the 20% safeguard duty imposed last week on hot rolled (HR) coils. The country's largest state-run steel producer Steel Authority of India (SAIL) has raised prices of flat steel products like HR coils by Rs 700 per tonne. Essar Steel too on Thursday decided to raise prices by Rs 500 per tonne on its range of flat products with immediate effect. 

Similar moves are expected to be made by other private sector players too within the next few days, causing a furore among a section of the steel users. They have protested against the hike and raised the demand for a 20% anti-dumping duty on finished steel to create a level playing field. "Our margins are under pressure. Imports continue to affect us. The market remains tough," an official in a leading steel company said to justify the hike. An industry source said the price change is more in the nature of a correction after the prices dropped by almost Rs 10,000 over the past year. 

Analysts were surprised by the timing of hike since the steel market remains lacklustre and the price increase came close on heels of the safeguard duty. 

"The key factor that can sustain any price increase is a revival in steel demand. However, in this case, the main user industries for HR coils -auto and consumer goods -remain slow. Hence, main producers are perhaps testing the waters by announcing a price hike," Goutam Chakraborty, metals analyst at Emkay Global said. 

An official with a top private sector steel producer said they were likely to announce a decision on prices on Monday (October 5) ahead of "a long weekend before us." 

Reacting to the price hike a sizeable section of steel users have called for imposition of a 20% anti-dumping duty on finished stee products to counter the 20% provisional safe guard duty on hot rolled coils a key raw mate rial for value added steel products like seam less tubes & pipes, engineering and fabrication as well as the auto sector. The safeguard duty has prompted steel pro ducers to hike prices making the input mate rial expensive and manufacturing costlier for a large number of end users. This, accord ing to them, will adversely affect the govern ment's 'Make in India' campaign since stee is a major input for the manufacturing sector as a whole. 

"The government should immediately im pose 20% duty on finished manufactured products of steel coming into India to pro vide a level playing field. Imposition of safeguard duty of 20% on hot rolled (HR) coils has made our raw material expansive and domestic manufacturing costlier. How can we compete with imports?" 

H L Bhardwaj, secretary general of Federation of Industries of India (FII), a grouping of domestic manufacturers of seamless tubes and pipes said. He added the domestic seamless pipes industry, which employs over 25,000 people, is staring at imminent closure due to dumping of cheaper products from China. 

"The industry is reeling under low capacity utilisation of 20-30% for the past year and may be forced to shut down factories leading to job losses and closure of ancillary industries,

H L Bhardwaj, secretary general of Federation of Industries of India (FII), a grouping of domestic manufacturers of seamless tubes and pipes said. He added the domestic seamless pipes industry, which employs over 25,000 people, is staring at imminent closure due to dumping of cheaper products from China. 

"The industry is reeling under low capacity utilisation of 20-30% for the past year and may be forced to shut down factories leading to job losses and closure of ancillary industries,"

Bhardwaj said. With a base of 4.5 million tonne, pipes and tubes form a sizeable and critical chunk of steel users, along with other aggrieved user segments like general engineering, fabrication and auto sector. 

Courtesy: The Economic Times

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Lanco Infratech Ltd (Rs.5.97) recommended on 9th September, 2015, at Rs.3.25 has hit another buyer freeze today. The scrip has almost doubled in the last one month, after its recommendation was put on the Premium Blog. The share was chosen amongst a group of Infrastructure companies, based on some positive developments.

Meanwhile, Lanco Infratech Ltd has allotted 26,51,74,603 (Twenty Six Crores Fifty One Lakh Seventy Four Thousand Six Hundred and Three only) equity shares of Re.1 each at a price of Rs.6.30-- promoters’ contribution being Rs.167.06 crore into equity shares of the company.

How to play the scrip of Lanco Infrastructure Ltd from now on? Join the Premium Service, to churn maximum benefits from the market. 

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Karuturi Global Ltd (Rs.2.56) is the world's largest producer of cut roses, having a global present in Asia, America and Europe.

The company has its operation in India, Ethopia, Dubai and Kenya, diversified into agriculture, floriculture and food processing producing Pulses, Oil Seeds, Maize, Sugar, Cut Roses, Plants production and distribution, Gherkins, Baby Corn, Jalapenos and Bottled Pickles. With over 292 hectares under greenhouse cultivation, the company annually produces around 555 million stems of quality cut roses for exports to high-value markets.

The company has identified agri-business as its prime growth engine and taken up cultivation in Ethiopia on a big scale to become a major player in the global agri-product market, mentions its website.

Recently (August 17, 2015), ICICI Bank acquired 8.89% stake in this leading rose exporter (Karuturi Global Ltd). Therefore, accumulate the shares of the company on declines for some good returns over 6-9 months.

Gitanjali Gems Ltd: Buy on Declines

Gitanjali Gems Ltd was recommended yesterday at around Rs.33.5. The scrip today touched an intra-day high of Rs.39, before closing at Rs.37.75 in the BSE.

The company's consolidated Q1 net for the quarter ended June 2015 nearly tripled to Rs.28.05 crore when compared with Rs.10.15 crore in the corresponding quarter a year ago. Total income also surged by nearly 42 percent to Rs.2,952 crore from Rs.2,082 crore. 

The scrip should be accumulated on declines as it could cross Rs.60, by this Deepawali..........

ICICI takes 8.89% in rose exporter Karuturi for Rs.25 crore

New Delhi | 18 August 2015: ICICI Bank on Tuesday said it has acquired 8.89% stake in leading rose exporter Karuturi Global.

"ICICI Bank Ltd (India) acquired 72,000,000 equity shares by way of invocation of pledge," ICICI Bank said in a release on BSE.

As per the filing, ICICI Bank had acquired 8.89% shares in Karuturi on August 17, 2015.

At yesterday's closing price of Rs.3.43 of Karuturi, the deal is valued at over Rs.24.69 crore.

Karuturi Global is a leading producer of cut roses with operations spread across Ethiopia, Kenya and India.

With over 292 hectares under greenhouse cultivation, the company annually produces around 555 million stems of quality cut roses for exports to high-value markets.

The company has identified agri-business as its prime growth vertical and taken up cultivation in Ethiopia on a big scale to become a major player in the global agri-product market, says its website.

Courtesy: DnaIndia.com

Rasoya Proteins Ltd: Update

I had spoken with the sources of Rasoya Proteins Ltd last week and these are the findings: 

• The company is planning to open the main plant between the period September, 2015-December 2015. This is now almost certain as the farmers are expecting good soya-bean crop, during this harvesting season; starting from September, 2015. 
• The company is in constant touch with the banks to get their loans restructured. The management is also looking for other opportunities get the funds. 
• The company could also come up with a preference issue for the promoters or infuse funds in a revamping operation.  
• The FY15 Annual Report of the company is likely to get updated in the BSE Website, either by the end of August., 2015 or in the 1st week of September, 2015. Naturally, the share price of a company increases before the publication of the annual reports.
• The company is expected to get good amount from the Insurance Claim (of Rs.34 Cr) towards Soyabean Stock Destroyed/Damaged due to fire; but it is likely to take another 3-4 months, get settled. 
• This time the company could import seeds, if they are available cheap in the international market. 
• The directors has appealed to the SAT, against the SEBI order, and a favourable verdict is expected. 
• However, the fund shortage is the biggest challenge for the company at present. If this gets somewhat resolved, then the share price could cross Rs.10, within the next 12 months. 

Conclusion: Buy the shares of the company on all declines with a SL of Re0.20, for short term targets of Re.0.60 and Re.1.00. 

Gitajali Gems Ltd: Buy

CMP: Rs.42.30

Gitanjali Gems Ltd recently announced the Un-Audited Standalone results for the Quarter ended June 30, 2015.

The Company has posted a net profit of Rs.158.014 million for the quarter ended June 30, 2015 as compared to Rs.79.692 million for the quarter ended June 30, 2014. Total Income has increased from Rs.15343.864 million for the quarter ended June 30, 2014 to Rs.16873.250 million for the quarter ended June 30, 2015.

The Un-Audited Consolidated Results for the Quarter ended June 30, 2015 is as follows:

The Group has posted a net profit after taxes, Minority Interest and Share of Profit/(Loss) of Associates of Rs.280.522 million for the quarter ended June 30, 2015 as compared to Rs.101.536 million for the quarter ended June 30, 2014. 

Total Income has increased from Rs. 20815.980 million for the quarter ended June 30, 2014 to Rs. 29526.728 million for the quarter ended June 30, 2015.

Moreover, the consortium of bankers have assessed the working capital requirements and the sanctions are awaited with modified terms. The company's request for substitution of security and release of cash margin is accepted by the consortium of banks and on providing alternate collateral securities to banks, cash margins and collateral amount to Rs.55.98 Cr, would be released by the banks which will cover the overdrawing from Banks. The company's over drawn position in the working capital account as on June 30, 2015 amounted to around Rs.43.96 crores which is mainly on account of non servicing of interest and charges. 

Buy the scrip at Rs.42.30, for a short term target of Rs.64 and medium term target of Rs.72.

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Educomp Solutions Ltd came out with a little better set of numbers for the June, 2015 quarter, speaking sequentially. It has reported a consolidated total income from operations of Rs.143.23 crore and a net loss of Rs.85.26 crore for the quarter ended Jun '15. For the quarter ended Mar 2015 the consolidated total income from operations was Rs.119.42 crore and net loss was Rs 153.00 crore.

Educomp is the largest Education Company in India and the only company spread across the entire education ecosystem. From schools to skills; over last two decades Educomp group has empowered over 30 million learners and educators across over 65,000 schools to imagine, think and create a better future. Founded in 1994, the company today has offices across India, in Singapore and in the United States.

The scrip was recommended to the Paid Members at around Rs.13.10, this week. Today, it closed at Rs.13.66, after touching an intra-day high of Rs.14.19; bringing smiles to the Paid Group members. 

Meanwhile, Rasoya Proteins Ltd (Re.0.26) is likely to start hitting upper circuits in the coming days, due to some latest positive developments (which was mentioned in the Paid Blog, today). 

Rasoya Proteins Ltd: Buy in Bulk

Rasoya Proteins Ltd (NSE Code: RASOYPR and BSE Code: 531522), a listed company is one of the major soyabean processors in the state of Maharashtra. It markets the Rasoya brand of Soya-oil, which off-late has emerged as a leading brand of edible oil in Maharashtra.

It is to be noted that low Soyabean output since the last two years has been one of the major reasons for the current depleted fundamentals of the company (apart from the GDR fiasco). 

Meanwhile, Rasoya Proteins Limited, which has a debt of over Rs.100 crore, had been classified as a NPA this April (2015) by a consortium of Banks, led by State Bank of India (SBI)--Bank of Baroda (BoB) is also having a share in the loan. However, during the last quarter, the company duly lodged Insurance Claim of Rs.34 Cr with the insurer towards Soyabean Stock Destroyed/Damaged due to fire which is yet to be realized.

The promoters have already indicated that low output and high prices of soyabean have hit the company's profitability, affecting the repayment of loans. 

However, better prospect of Soya-crop this season, has again raised the hopes of the shareholders. Also, the company is looking to operate its main plant with increased capacity, post-harvest season, beginning from September, 2015.

During the June 2015, the company came out with a slightly better standalone results, speaking sequentially.

The main activity of the company--Solvent extraction has not been carried out during the entire June, 2015 quarter due to non availability of Agro based Raw Materials, Soyabean Seed. As a consequence the Refinery and Captive Power Plant operation remained closed during that period. However, the plants for Value added products, viz. Fish Feed and Powder Lecithin  are in operation.  

The company's full Product Range Includes:

• Soya Flakes / Grits :- Soya DOC, Soya Hi-pro DOC, Soya Full Fat Soya DOC / Meal - Enzyme active, Soya Grits Untoasted, Soya Flakes - Toasted - Food grade, Flakes MPDI, Full Fat Grits,
• Soya Flour - Toasted / Untoasted, Food grade / Feed Grade, Hi-pro flour,
• Soya Lecithin : Liquid and Powder,
• Soya Textured Protein,
• Soya Refined Oil,
• Fish Feed.

It is a Reputed Manufacturer and Exporter of Soya Products, Wheat Flour, Fish Feed and Power generation in India. It has three Soya Processing Units with a total capacity of 1800 MT per day. It also has two refineries with capacity of 250 MT per day. Moreover, it possesses important certificates like: 

• Cert ID NON GMO certificate,
• Kosher certificate,
• HalalCertificate,
• ISO 22000:2005. 

Buy the shares of the company for a short term target of Re.1 and long term target of Rs.10. The general theory is that the share of such a company cannot trade below its Face Value even with these fundamentals. 

The investors/traders should note that it is a SPECULATIVE COUNTER and is ONLY SUITABLE, for high-risk-taking-individuals.

Brokerage Report

Green shoots: Positive IIP data + Controlled Inflation + Robust Indirect Tax Collection Numbers, Depicts Incipient Recovery

Factory   output   growth for   the   country   surged   to   3.8% in  June up  from  2.5% (revised) in  the  previous month...

Photo: Green Shoots Psychology

The  index  of  industrial  production  (IIP)  rose  to  a four-month    high    on the    back    of rebound    in    the manufacturing sector, which rose 4.6% in June compared to 2.9%  growth  in  the  year  earlier  period.  The  turnaround  in consumer  goods  and  consumer  durables  also  augured  well but the capital goods sector contracted after seven months, pointing  to  weakness  in  investment  conditions. 

The  data suggested  a  slow  pickup  in  demand  following  the  lowering of  interest  rates.  As  many  as  16  of  the  22  sub-sectors posted positive growth.

Retail Inflation remained within the RBI’s comfort zone at 3.78%...
Retail  inflation,  the  primary  gauge  for  the  Reserve  Bank  of  India, softened sharply in July to 3.78% from 5.40 % in June, much   below   the central   bank's   comfort   zone,   quelling immediate  upside  risks  arising  out  of  deficient  monsoon estimates.

Price of pulses remained a worry as they shot up nearly  23%  year-on-year  in  July,  but  food  and  beverages inflation remained benign at 2.9%.

Fresh Hopes: Another Rate Cut...
Belying  concerns  related  to weak  monsoon,  food  inflation softened.The   sharp   moderation   in   retail   inflation   is expected  to  trigger  calls  for  a  cut  in  interest  rates.  RBI  left rates unchanged in its policy review earlier this month. The latest  retail  inflation  data  is  much  below  the  comfort  level of RBI.

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The total area sown under Soya-bean Crop, is likely to be 100-110 lakh hectares this Kharif season, almost similar to last year. Also the crop yield might be normal and satisfactory in states like Madhya Pradesh and Maharashtra, unlike what was expected earlier.

The Soya-crop, which accounts for more than a third of India's oil-seed production, had earlier come under stress after rainfall deficiency of as much as 54% in central India and 60% in the southern peninsula in the first half of July. 

However, off-late several places in Central and Northeast India have recorded good rainfall, especially during the last fortnight. In fact earlier this month, Yavatmal, Wardha, Buldhana, Akola and Amravati in Maharashtra, witnessed record breaking rain which raised the hopes for Soya Oil industry. Moreover, this spell of rain has come as a huge relief to the people of Vidarbha region who were witnessing deficient rain.

Meanwhile,  according to media reports, in Rajasthan, the area under soybean is likely to touch 10 lakh hectares, helped by late rains including recent rains and available irrigation facility. The crop is reported to be quite satisfactory. 

It is worth mentioning here that July and August are the peak Monsoon months for most parts of the country. The average monthly rainfall amounts are also very high. And though it is expected that all the regions receive good rain during this period, the distribution of rain is still uneven. 

Some places record very heavy rain and observe a monthly surplus, while the others witness less rain and are deficient. 

The Market Watch writes on August 7, 2015: 

While the weather bulls had driven soybeans to rally by $1.40 per bushel from mid June to mid July, reduced yields that many expected may not be coming to pass. While beans have since retraced some of their July gains, we feel the clock is running out for bean bulls and that further upside will be limited. This sets up a potential opportunity for short-sellers as harvest approaches in September.

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PVP Ventures Ltd informed BSE that a Meeting of the Board of Directors of the Company will be held on August 14, 2015, inter alia, to consider and approve the Unaudited financial results of the company for the quarter ended June 30, 2015. 

The scrip today closed at Rs.7.31 up 19.44% in the BSE and a tad below the Upper Circuits of Rs.7.34 (BSE). The share-price of the company has under-performed the market since the last 3-4 months; however again Rs.9.5-10 again coming before "Durga Pooja". What to do with this scrip? Join the Paid Service.....

Veer Energy and Infrastructure Ltd: On an Exponential Upmove...

The main Business of the Company is to create infrastructure development facilities for the installation of Wind Turbine Generator. As one of the pioneer in this field, Veer Energy and Infrastructure Ltd (Rs.4.40) is very well positioned to take advantage of ever increasing demand for the renewable energy resources.

This is another company like Karuturi Global Ltd which will see the fruits of its new initiatives. The scrip should cross Rs.7-8 by the end of CY2015--remain invested.

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Karuturi Global Ltd (Rs.4.99), the world's largest cut rose exporter from India, is now almost at a 3-year high and is threatening to break Rs.7, on the upside in the coming days, due to expected improvement in its fundamentals. The way the company is trying to revamp its operations makes me feel that it will slowly move towards its all time high of ~Rs.38. 

Therefore, accumulate the scrip on all declines, for immediate targets of Rs.7 and Rs.9.5--don't sell the scrip in a hurry!!

Tata Steel Ltd: One Should Not Try To Catch a Falling Knife

Tata Steel Ltd could fall further as more and more cues are suggesting that China the world's second largest economy and the largest consumer of base metals is headed for a slowdown. 

Moreover, Narendra Modi government is yet to bring up policies which could shore up the bottomlines of the steel companies in India. 

In fact hereto, the Narendra Modi government has done precious little to stem the tide of steel-imports, from China, South Korea, Russia, etc. 

Most of the leading steel companies are reeling on deep debts. For example, as on end-March, Tata Steel’s consolidated net debt was Rs.69,000 crore. That of JSW Steel was Rs.36,000 crore. 

What is interesting in the case of JSW Ltd is that, despite consistently rising revenue and operating profit, the company has not been able to significantly cut debt. On the other hand Tata Steel, the country’s oldest in the sector, has taken timely non-cash impairment charges, sold non-core assets and even refinanced its loans.

India's steel imports had jumped around 70% to over 9 million tonnes in the year to end-March, with a surge of cheaper purchases from China accounting for about a third of the total. Imports soared 55% in April-May. 2015. After months of lobbying by its largest steelmakers, India last month raised duties on some steel imports by up to 2.5%--which is too little and too later. 

Also, the Narendra Modi government is in dilemma as regards steel imports and more duty increase could potentially harm the bottomlines of smaller producers according to a report published in the Reuters. The analysis says that:

"Steps by India to protect its large steelmakers from a flood of cheap imports could end up closing scores of small, local firms that process the metal, industry analysts and executives said. These processors currently buy imported steel at up to 20 percent below India's pricier, domestic steel, turning it into finished steel products for industrial use".

This has virtually left very options for the Modi government, to protect the larger domestic players in the steel sector. 

Meanwhile, there some news in the media that Tata Steel Ltd may be forced to further reduce assets in its Europe business, hurt by continued challenges due to adverse currency volatility and surging Chinese imports in India. Tata Steel Europe has already put its long products business on the block and is narrowing down its focus on more profitable and promising business divisions in Europe like its strip business while moving away from continuously loss-making units.

However, some smaller steel companies, who are taking new initiatives, like Rohit Ferro Tech Ltd (Rs.6.53), could see some improvements in their share prices.  

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Rohit Ferro-Tech Ltd (Rs.6.53) earlier informed the BSE, that Company's Factory at Haldia, Purba Mednipur, was under suspension of work from July 01, 2015. The Suspension of work was mainly on account of the following reason:

Substantial gap in Tariff of electricity by the West Bengal State Electricity Distribution Co. Ltd. (WBSDCL) and Damodar Valley Corporation (DVC). For the Company's Haldia Plant, the Company have to procure electricity from WBSEDCL, whose rates are 30% higher compared to DVC and as a result the Company is incurring huge losses.

This a good news for the shareholders, as the company might now think of procuring electricity from DVC instead of WBSDCL. The scrip should slowly move towards Rs.8-9.5 in the coming days--remain invested.

Rolta India Ltd: On a path of Recovery

Moneycontrol.com writes on July 29, 2015: The Ministry of Defence (MoD) has selected 10 companies who can file expression of interests (EoI) for futuristic infantry combat vehicles by October 2015. This will replace the Sarath BMP, which has been existing since past 10 years. 

The seven year old project is worth Rs.60,000 crore and includes large players like Tata Motors , M&M , Tata Power SED, L&T and smaller players like Titagarh Wagon , Rolta Limited, Pipavav Defence , Bharat Forge and Punj Lloyd.

Meanwhile, there were media reports that India’s Rolta Power Pvt Ltd and China-based Zhenfa New Energy Science and Technology Co Ltd have teamed up with a plan to install at least 2 GW of solar power capacity in India by 2020.

The two companies have entered into a memorandum of understanding (MoU) to conduct and capitalise on joint engineering, procurement and construction (EPC) opportunities in India’s solar power industry, they said in a press release on Tuesday.

Karuturi Global Ltd: The India's largest Rose Flower Exporter, is on a Dream Run

Earlier the India's largest rose exporter Karuturi Global Ltd (KGL) received an approval from the board of directors to offload its 53% stake in Mumbai-based Florista India Pvt Ltd, which operates a chain of floral designing boutiques across India, according to a stock market disclosure.

Recently Karuturi Global Ltd announced that the Committee of the Board of Directors of the Company at their meeting held on 25 May 2015, has allotted:

1. 34,50,00,000 Convertible Warrants of Face Value of Re. 1/- each to Non Promoters on Preferential Allotment basis through Resolution passed by the Shareholders at the Annual General Meeting held on 20 March 2015 pursuant to the provisions of Section 62 and other applicable provisions of the Companies Act, 2013.

2. 1000 Fully Convertible Debentures of Face Value Rs. 5,00,000/- each to Promoter through Resolution passed by the Shareholders at the Annual General Meeting held on 20 March 2015 pursuant to the provisions of Section 62, 71 and other applicable provisions of the Companies Act, 2013.

If you remember, the scrip was recommended at around Rs.1.20-1.50 and was asked to be averaged, on all declines. Congratulations to all, who followed this suggestion of mine and is now sitting on a pile of cash. The next target for the scrip seems to be Rs.7-9, as the company is taking of measures to improve both its top and bottomlines.

Yakub Memon execution: India needs to become more humane and abolish capital punishment

Photo: India Today

[Editor: The event shows that the current Indian Leadership cannot think beyond a point, as the state still uses medieval methods as deterrents to curb crimes--oblivion of the limitations of the "Death Sentence". 
Moreover, it has been proved that Narendra Modi government, does not have the power of innovation. A long time Facebook Friend came out with a sharp criticism against me when he said: "Tumahre jaise log ho to India ko kab ka Pakistan bana de..same (sic) to be indain(sic)". But the question is: how does hanging of an Indian help the country not becoming Pakistan?
Also, the Indian media has to be more humane, because they are the ones who most of the time, are responsible for whipping up the frenzy, for the "Schizophrenia", called "Capital Punishment". 
Moreover, Tripura Governor Tathagata Roy's tweets about Yakub Memon's funeral have evoked sharp responses from everyone. The 70-year-old Roy tweeted saying those who attended the last rites of 1993 Mumbai blasts convict Yakub Memon were potential terrorists, who must now be keenly watched by the intelligence agencies.  The First Post writes on July 28, 2015: Some 300 Indians actually put their signatures on a petition to President Pranab Mukherjee asking for a reprieve for Memon. They include Sitaram Yechury, Naseeruddin Shah, Aruna Roy and the BJP’s own Shatrughan Sinha.
Meanwhile, the Congress (INC) leader Mani Shankar Aiyar earlier said, there was no benefit to be gained from giving death sentences to convicts, and called for the practice of death penalty to be abolished, as it has never acted as a deterrent against terrorism]

The mourning for Yakub Memon at his funeral
creates an impression of two Indias.
Photo: First Post

Jul 31, 2015: The debate over the rights and wrongs of Yakub Memon’s execution on Thursday is yet another example of how opinion is bitterly divided between those who support death penalty and those who don’t.

For the abolitionists, it is a rare opportunity to harness people’s sense of the right, their emotions, and their understanding of human rights because a spectacle of a state-sponsored killing shake their conscience. It’s an opportunity to play with human emotions for the retentionists too, but what they choose to bank on is the idea of retribution or revenge killing, the victims’ need for closure, and the need for legal, than social, instruments to deter crime.

It’s superfluous to reiterate that death penalty doesn't deter people from committing grievous crime in any part of the world - not now, not in the past. Every single study across the world over the years has unequivocally established this fact. A recent report from the University Colorado said that 88 percent of the criminologists in the country didn't believe that it’s a deterrent. If it had, the jails in countries with death penalty wouldn’t be overflowing and the number of executions in China, Iran, Iraq, Saudi Arabia and even a modern and democratic United States should have fallen to negligible levels.

Although only three have been executed in India, including Memon, in the last decade, more than 1300 convicts have been handed death sentences by various courts. Have the number deterred crimes? No.

It's the same for the rest of the world, even in countries, like Saudi Arabia and North Korea, where public executions are carried out in the most gruesome way possible.  It’s not the experience of a few decades that make this point, but the accumulated evidence of a few centuries.

Several countries, where convicted criminals many of them for even minor crimes, were subjected to extremely torturous deaths have realised the fallacy of deterrence and have completely abolished the practice. The obvious example is Europe in the 17th and 18 century, when people were “broken on the wheel”, boiled to death, crushed to death, pulled apart by horses, and burnt and mutilated. 

France used to be the barbaric Saudi Arabia of today where capital punishment was a theatre of terror; now the country wouldn’t even extradite people to places where they run the risk of death penalty.

Executions are example of ultimate cruelty to people, that too those who are held captive. And every piece of witness account has the same spine-chilling air of helplessness and pain. After sitting through the last execution in France in 1977, a judge wrote: “I heard a dull sound. I turned round - blood, lots of blood, very red blood - the body had toppled into the basket. In a second, a life had been cut. The man who had spoken less than a minute earlier was nothing more than blue pyjamas in a basket. A guard took out a hose. The evidence of a crime needs to be erased quickly... I felt nauseous but I controlled myself. I had a feeling of cold indignation.”

In fact, visionaries had acknowledged the barbarity and futility of capital punishment long ago. Cesarae Beccaria, great Italian criminologist and one of the icons of Enlightenment in western Europe, had said 250 years ago that capital punishment was both inhuman and ineffective, an unacceptable weapon of modern enlightened state to employ, and less effective than the certainty of imprisonment. In his seminal “On Crimes and Punishments”, he said: “It’s not useful because of the savagery it gives to men. It seems absurd to me that the laws which are the expressions of public will and which hate and punish murder, should themselves commit one, and that to deter citizens from murder, they should decree a public murder.”
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It’s certainly encouraging that Indian courts, despite freely issuing death sentences, also commute them to life sentences and the State hardly executes people these days. However, its choice of cases and people that it executes does evoke a sense of prejudice and injustice. If terrorism is one of the rarest of rare cases that the courts find it fit for capital punishment, how come some terror convicts alone go to the gallows while some, even with equally grievous charges, get lesser sentences? If the State gets to choose capital punishment for certain crimes, that too in select cases, it’s very hard to ensure that there is no politically motivated indiscretion.

Abolition of capital punishment is right not only criminologically, but also by international conventions on human rights including that of the UN, which wanted a moratorium on death penalty in 2007. It’s widely accepted that death penalty, is a “denial of the universal human rights to life and to freedom from tortuous, cruel, and inhuman punishment”. Additionally, it will also allay fears of selective persecution and misuse by the State.

If the death penalty doesn’t deter, if the “miscarriage or failure of justice in the implementation of the death penalty is irreversible and irreparable,” as the UN resolved in its General Assembly that many countries paid heed to while moving towards abolition, and if there are other forms of punishments such as long term imprisonment are possible, persisting with the practice will only perpetuate State-sponsored cruelty.

In the last 25 years, the number of countries that abolished death penalty rose from 35 to more than 100. Most of the countries that abolished death penalty have also incorporated it into their constitution. Similarly, the number of countries that were “de facto” abolitionist (no executions despite death sentences) has also doubled.

The idea of reparation of victims, doing justice to their suffering, and helping them find closure to their angst, doesn’t hold water because the purpose of rule of law is not to foster revenge killing, but to deliver justice. There should be an alternative model of victim support, without political and ideological exploitation, to address their emotions. And most importantly, the purpose of Law should be to deliver justice and protect human rights, than to pander to popular sentiments.

Courtesy: First Post

Yakub Memon, Mumbai blasts convict, loses SC appeal; to be hanged

[Editor: It is unfortunate to note that Narendra Modi government has started following those foolish "Arabs", the Communist China and the US, apart from a host of other countries, who use this kind of "Eye-for-an-eye-justice System or Retributive Justice System", to correct their societies. Also, there is No proof that the Death penalty prevents crime.... 

On March 7, 2015, the world woke up to a horror when the media flashed the news that Iran's judicial system which believes in the ancient concept of "an eye for an eye"-- literally; forcibly blinded a man convicted of blinding another man in an acid attack. Even Saudi Arabia and many Islamic States follow such systems, which are outdated in almost the whole of Europe and some parts of American Continent. 

Moreover, following the

Andrew Chan and Myuran Sukumaran inside
the workshop of Kerobokan jail in Bali

executions of Andrew Chan and Myuran Sukumaran in Bali, debate about the role of the death penalty in society has led to calls for Australia to push for an end to the punishment around the world. 

But what a pity, India under Narendra Modi, instead of showing a new way to the world, is unfortunately trying out those old and obsolete methods, the progressive world has started to reject or protest tooth and nail---that Narendra Modi lacks innovation capabilities is proved once again. 

Bottomline is that: India should abolish Death Penalty or Capital Punishment at the earliest, to avoid brutalization of Indian societies. Moreover, what will India get by "Murdering" a qualified Chartered Account, instead of making him or use his knowledge for free to teach the poor and downtrodden (as a punishment)? This would have been more intelligent instead of those hackneyed methods. 

Very recently, the Malaysian Insider reported that in Indonesia, an interpretation of shariah promoting a moratorium on the death penalty has been raised, but it is unfavourable to many Muslim scholars. Amid the uproar concerning the death penalty for Indonesian migrant workers in Saudi Arabia, as well as that of drug convicts in Indonesia, opposing voices in the name of Islam are barely heard. 

Nahdlatul Ulama (NU), the largest Muslim organisation in Indonesia, considered moderate by many, condemned the death penalty for migrant workers in Saudi Arabia, yet supported the death penalty for drug convicts. But in general, the death penalty is a non-issue for Islamic organisations.

Capital punishment, along with corporal punishment, is prescribed in Islamic scripture so it is very difficult, though not impossible, to have a voice of Islam that is against the Death Penalty.

But then is India an Islamic State....?

Anyway,  digging a bit of history let me point out that Yukub Memon scored 70% in the state secondary board exams and went on to complete his Masters in Commerce from Burhani College of Commerce & Arts, even as his elder brother, Ibrahim Memon alias Tiger, was making his mark in the Mumbai underworld. After that he enrolled as a student of the Institute of Chartered Accountants of India in 1986 and become a certified chartered accountant four years later. Meanwhile, on April 9, 2015, ANI News reported that: Yakub Abdul Razak Memon cleared his MA political science exam from Indira Gandhi National Open University (IGNOU), Nagpur. His penchant for education has led Yakub Memon, a chartered accountant by profession, to take admission in MA (Political Science) course even after having a masters degree in English subject. IGNOU (Nagpur) Regional Director Dr P Sivaswaroop said that Memon scored second division marks in his exam and was always curious during the study sessions to know about the topics. I am appalled to see, how the government machinery is used to take revenge. 

Memon, always claimed that he did not know about his brother’s dealings, which the Honourable Supreme Court rejected. 

The First Post writes  on July 21, 2015: He set up a firm with his childhood friend, Chaitanya Mehta, called “Mehta and Memon Associates”. A year later, they parted ways and Memon set up his independent firm, "AR & Sons", in memory of his father. This firm proved so successful that he was conferred the Best CA Award by the Memon community in Mumbai. He diversified into exports and set up a company, Tejrath International, to export meat and meat products to the Gulf and Middle East. In a very short period, Memon became a financial success and invested in six flats in the Al-Hussaini Building in Mahim, close to the famous Mahim Dargah.

In this context, I also want to know more about Mulchand Shah Choksi. I feel that though the charges against him are serious, but then hanging a man to avenge the death of another, is as primitive as doing operation without anesthetic. 

Therefore, it is really pathetic to note: why Bharat-Varsha or India is made to follow those stupid Arabs, the headstrong USA and the communist China, when the Indian Justice System is more inclined towards the British Jurisprudence and the country is known for non-violence movements throughout the world. Can we have a Prime Minister, who is more progressive and innovative??!!]

Jul 21, 2015: The Supreme Court on Tuesday dismissed the curative petition of Yakub Memon, the only convict sentenced to death for his role in the 1993 Mumbai serial bomb blasts case, paving the way for his execution on July 30 in Nagpur's Central Jail.

Yakub is likely to be hanged in the Central Jail on the scheduled day after his last legal attempt to escape the gallows was turned down by the apex court.

Hindustan Times reported on July 15 that the state government plans to hang Yakub at Nagpur jail on July 30 if the Supreme Court turns down his mercy plea on July 21. The government initiated the process of Yakub's execution after the Supreme Court on April 9 rejected a petition seeking a review of his death sentence by a trial court.

President Pranab Mukherjee turned down Memon's mercy plea last year.

Yakub's relatives in south Mumbai have already been informed of his impending execution.

"According to a Supreme Court directive, relatives must be informed 15 days before the execution. The death warrant was issued on Monday and served to [Yakub’s] relatives on Tuesday. Jail authorities in Nagpur also have been informed to allow them to prepare for the hanging," said a home department official, who did not wish to be named.

Yakub's family, particularly his wife, Raheen and young daughter, are expected to arrive either on Tuesday or Wednesday for a visit, probably their last one, before his hanging.

Yakub, a chartered accountant, is the brother of fugitive terror mastermind Ibrahim Mushtaq 'Tiger' Memon. According to the CBI, which investigated the case, Tiger Memon got Yakub involved in planning the serial blasts, which killed 257 people and injured about 700 on March 12, 1993.

Yakub was sentenced to death by a designated TADA court in 2007, after it found him guilty of playing a key role in the criminal conspiracy. The CBI alleged that the blasts were planned by Dawood Ibrahim, Tiger Memon and others.

The Supreme Court subsequently upheld Yakub's death penalty while commuting the sentences of 11 others to life imprisonment. President Pranab Mukherjee turned down Yakub's mercy plea last year.

Meanwhile, sources said Yakub has been keeping a low profile at Nagpur Central Jail. He was shifted there in August 2007 from Yerwada jail as part of a move to ease overcrowding in the Pune prison.

Preparations for his hanging are underway and schedule for the day has also been decided.

Yakub will be woken up at 3am. He will be given a bath at 3.10am. At 3.20 am, he will be given time to pray. He will be served a breakfast of his choice at 3.25am. At 3.30am, the recitation of religious texts will be done. At 3.40am, he will be taken to the gallows.

At 3.45am, Yakub will be informed about the crime he committed and to feel remorse about it. At 3.50am, he will be told about the crime for which he is being hanged. At 4am, the noose will be tightened around his neck and he will be hanged.

After this, the doctors will examine his body and then a message will be sent to the home minister about the hanging. Later, Yakub's closest family will be conveyed the news over the phone.

The entire proceedings of July 30, 2015 will be monitored and witnessed by a select group of people, including senior officers of the jail administration, senior police officers, a lawyer, a couple of doctors and a person of repute who will act as a 'panch'.

Courtesy: Hindustan Times