On 25th October the Reserve Bank has again raised the Repo rates by 25 BP. Thus the Repo Rate Now stands at 8.5%. It is the highest anywhere in the world. The Rupee has reacted sharply to this and there has been an appreciation of Rupee by over 2% in a single day on 28th October 2011.
The reason for this increase and the past increases as well is stated to be that it will contain inflation. I find it illogical. For two reasons:
1. The depreciation of Rupee by 10% in past about a month itself had been inflationary.
2. The increase in repo rate by the Reserve Bank itself is inflationary. The Repo rate is the base lending rate for the Banking Industry. If lending rate goes up, it carries with it the cost of production as it is also an input component for goods produced.
I am no economist but I do not feel it right. It is compounded by the fact that same medicine which has already been administered by the Reserve Bank for many times in the past one year has not produced any result. I wish this persistence may bring some tangible result this time.
Senior Congress leader from Kerala, K Sudhakaran, has alleged that in 1994, a Supreme Court judge had pocketed Rs 36 lakh to lift a Kerala High Court ban on 21 bar licences in the state. Sudhakaran, who represents Kannur in the Lok Sabha, said though he did not have any proof to back his allegation, he was ready to disclose the name of the judge and other details in a court if asked to do so. (Source: http://www.indianexpress.com/news/kerala-bar-owners-bribed-sc-judge-to-retain-licences-mp/749759/.)
Justice Ratnavel Pandian, a former acting Chief Justice of Madras High Court who retired as a Supreme Court justice 17 years ago, denied all charges terming them:
“baseless and mischievous”. “I am terribly shocked and surprised to see the news coming from an honourable MP. I strongly and firmly deny this allegation as baseless, mischievous and false. I am thinking of taking legal action in the appropriate forum, both criminal and civil. But before that I would like to see the copy of the judgement and the full text of the MP’s speech. Eighteen years after demitting office as an SC judge, I don’t remember the case and the kind of judgement I rendered,” (Read more at: http://indiatoday.intoday.in/story/former-sc-judge-denies-cong-mps-bribe-charge/1/130153.html)
Whether judge can be prosecuted or not but the person brokering the deal can be prosecuted as abettor. Delay of 18 years could be condoned. But nothing will happen because the truth does not matter any more. If it came out that Judge was indeed bribed, it will affect the credibility of institution.
Hence nothing will be done. Corruption is the real cement which is keeping every institution together.