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4 VOL 35 Š NO 31 Š THE WEEK Š JULY 30, 2017
CONTENTS FOR THE WEEK JULY 24-JULY 30

COLUMNS
COVER STORY

24
12 Power Point 42 PMO Beat
Sachidananda Murthy R. Prasannan
16 Sound Bite 74 Last Word
Anita Pratap Shashi Tharoor

18 Current events: 43 Missing

India confronts Indians:
Pakistan with Liberation of
'smoking guns'. But Mosul revives hope
Pakistan is unlikely of finding the 39
to respond missing men
20 Interview: 56 Mosul: Covering
Jammu and the war was
Kashmir doesn't a humbling
require a solution, experience, says
says Union minister photographer
Jitendra Singh Emanuele Satolli
SANJOY GHOSH

36 BJP's top 60 Sports: Figure

picks: Modi skater Nishchay
sends a strong Luthra wants to
political message win a medal for
by selecting Ram
AN AUSTERE LIFE Nath Kovind and
India at the Winter
Olympics next
Venkaiah Naidu year
A desire to find true contentment is what prompted Varshil
Shah, 17, to become a Jain monk. A state topper in Class 12
exam, Shah was deeply interested in religious studies from a
very young age. On June 8, he was initiated into the life of a NEXT WEEK
Jain monk. From now on, he would have to beg for food. He FREE HEALTH
can neither take a bath nor wear any footwear. The story of a 50 anti-ageing tips
boy who chose a life of hardship
COVER DESIGN: BINESH SREEDHARAN
PHOTO: SANJOY GHOSH
JANAK PATEL
UMER ASIF

AP

22 JAMMU & KASHMIR

Burhan Wani's tomb has become a
50 QATAR
The crisis continues as the primary
63 @LEISURE
The havelis and pols of Ahmedabad,
shrine for the local people, who flock adversaries refuse to compromise and which became the first Indian city to
the place to seek his blessings the US fails to take a coherent stand get the World Heritage City tag
K
Printed at Malayala Manorama Press, Kottayam, Print House India Pvt Ltd, Mumbai, M P Printers, Noida and Rajhans Enterprises, Bangalore and published from Manorama Buildings, Panampilly Nagar,
Kochi-682 036, by Jacob Mathew, on behalf of the Malayala Manorama Co.Ltd., Kottayam - 686 001. Editor Philip Mathew ● Focus/Infocus features are marketing/PR initiatives
6 THE WEEK Š JULY 30, 2017
LETTERS
GUJARAT A INDIA
AIR
MAN WHO INSPIRED GANDHI M
MAHARAJAH’S
J
JULY
China fumes as India stands
Be ready for any contingency
BEWARE,
CHINA
CHINA HAS no business
to tell the Indian Army
to withdraw from our
own territory (‘Heights of
showdown’, July 16). India
should stand firm, but not
worsen the border crisis.
It has become a habit for
China to throw tantrums
and threats every now
and then. China should
realise that its arrogance
and machismo won’t work
with India.
India should look at
options to address the
current standoff, which
could be damaging to the
strategic interests of both
countries. China should
know that India is as
powerful as China. Both
countries should exercise
maximum restraint for the
larger good. India, on its
part, should not commit
any blunders. War, after
all, is not an option in
today’s times.
P.K. Mohan,
Chennai.
YOUR COVER story on
the zone of confronta-
tion between China and
India was informative.
I would like to ask the
A
military experts, are we ways to ease the friction, or holding your breath in
’ RICHES
C S
16,, 2017 $50
0
PPHOTO-
O O
really ready to take the which is mutually harmful. half-clad body, wrapped
F A
FEATURE
WOMEN
G
O
GUARD
WHO O
BIGG CCATS dragon head on? Further, Raveendranath A., partially in a piece of dho-
IN GIR FOREST
O
has this recent change in On email. ti tied along the gluteal
our aggressive posture got cleft (‘Letters’, July 16).
anything to do with the INDIA MUST seek a polit- And, you decided to give
Modi-Trump bear hug? ical solution without com- it prominence by titling it
Kapil Sharma, promising overstated posi- ‘Yoga not spiritual’. The
Jammu. tions. India cannot afford a publication of such a letter
ANGRY full-scale war with China. has exposed the mindset
DRAGON THE CHINESE foreign General Bikram Singh has of the writer and also of
REPORT FROM THE BORDER
its ground on Doklam ministry spokesman said correctly observed, “despite the person who selected
GEN. BIKRAM SINGH
that India is misleading the unsavoury and belliger- the letter.
the public by saying that ent Chinese rhetoric, the While there are number
the border crisis has taken government of India’s han- of books on yoga, there are
place at the tri-junction of
India, China and Bhutan.
dling of the situation has
been more balanced and
two books Cherian must
read: The Hidden Teaching
He is completely wrong.
China’s attempts to con-
mature”.
C.V. Venugopalan,
Beyond Yoga by Paul
Brunton, and Yoga and
struct a road in Chumbi
On email. Nature Cure by G. Francis
Valley will help it cut off Xavier. Both are, fortu-
the northeast from the
THE CUNNING Chinese nately, not Hindu dogma-
rest of India in the event are trespassing into Indian tists. Please don’t vitiate
of a war. India should
territory every now and public space by publishing
never let this happen. then. This should be such letters.
K.V. Raghuram,
stopped forever. China J. Shriyan,
On email. has hurt our sentiments by Mangaluru, Karnataka.
closing down the Nathu
CHINA IS perhaps irked
by Exercise Malabar,
La pass and denying entry Valid remark
to Kailash-Manasarovar I AGREE with Kamal
involving the navies of the
pilgrims. It is time we Haasan when he said
US, Japan and India, by
gave a befitting response Tamil Nadu has left Bihar
the Dalai Lama’s visit to
to the Chinese for their leagues behind when it
Arunachal Pradesh and
misadventures. came to corruption (‘Point
India’s boycott of China’s
Arathi Raghuveer, blank’, July 16). Tamils
high-profile Belt and Road
On email. should stop grovelling
Forum. China should dis-
to their politicians. They
play wisdom and states-
WE SHOULD look at should not elect corrupt
manship in resolving the
options to address the cur- leaders who encourage
dispute through talks with
rent imbroglio and also nepotism. Tamil Nadu
Bhutan and India.
be prepared to deal with spends an unreasonable
Kangayam R. Narasimhan,
the worst possible contin- amount on sops, which is
On email.
gency. China should not not right. People should
have stalled the visit of boycott such sops.
THE STANDOFF in
Indian pilgrims to Kailash- Naval Kishore,
Doklam reminds me of
Manasarovar via Nathu La. On email.
the relevance of the adage,
‘Good fences make better It was not in good taste.
neighbours’. There was a G. Shiv Shankar, Population worries
time when China sneezed, Kochi. IT WAS apt on the part
and many in India caught of Meenakshi Lekhi to
the cold. Situations have Why that letter? have touched upon the
changed drastically. READER T. Koshy issue of uncontrolled
But, mutual recrimina- Cherian said that no one growth in population in
tions won’t pay. India and can find spiritual solace by the country (‘Forthwrite’,
China have to explore extending your muscles July 16). Family planning
8 THE WEEK Š JULY 30, 2017
LETTERS
programmes have not
been successful in India.
There is a deliberate
silence on this burning
issue. Another problem
is the urban-rural divide
which has resulted in cit-
ies becoming overcrowd-
ed. Unconstrained popu-
lation growth would
have a negative impact on
the ecological balance of
the country.
M. Gopal Rao,
On email.
THE GOVERNMENT
should come up with a
strict national population
policy which should apply
to one and all. The terrify-
ing growth rate in popula-
tion would lead to lower
productivity and affect the
economy of the country as
a whole.
Om Prakash,
On email.
A rude shock
CITHARA PAUL’S story
on the ISRO espionage
case (‘Rocket and the
racket’, July 16) provided
a clear narration of all
events related to the case.
The sufferings undergone
by S. Nambi Narayanan
over the years came as a
rude shock. The compen-
sation of $ 10 lakh paid to
Narayanan is too little and
too late.
Ammanath Govindan
Kutty,
On email.
Divine gift
YOGA IS beyond religion
and faith and it helps
relieve the sufferings of
the people who are help-
less and hopeless because
of poverty and lack of
basic amenities (‘That
elusive search for bliss’,
June 25). It is most grati-
fying that the mid-year
special of THE WEEK
is in our hands at a time
when the celebrations of
International Yoga Day
are in full swing. Yoga is
the divine gift of India to
the universe.
You missed writing
about Sri Sathya Sai Seva
Organisation, which is
functioning in nearly
170 countries, spread-
ing spirituality with
service-oriented activi-
ties like feeding the poor,
constructing houses for
orphans and many other
activities for the deserving
people, irrespective of re-
ligion, caste, community,
nation and race.
Jayaprakash Reddy,
On email.
Respect the laws
VINOD RAI HAS made
a very valid point in his
column (‘Candid talk’,
June 25). Rai says that
Britain does not have a
written constitution as
we do, and yet the system
works like a well-oiled
machinery. Why has
our democracy, though
robust and vibrant in
every way, become so
boisterous, noisy and
dirty, and often a security
nightmare when we go to
the hustings, he asks. The
answer is, once elected
many of our opportun-
ist politicians think that
they are above the law.
They should realise that
true greatness is in joining
their fellow citizens and
submitting themselves to
the laws of the land.
Ravindran Nambiar,
On email.
EDITOR
PHILIP MATHEW
SENIOR ASSISTANT EDITOR & DIRECTOR
RIYAD MATHEW
EDITOR-IN-CHARGE EDITOR-IN-CHARGE (ONLINE) SENIOR NEWS EDITOR
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NEWS EDITOR DEPUTY NEWS EDITORS
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HAZEEDA VIJAYAKUMAR SNEHA PILLAI RAHUL J. MOHAN
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12
power point ● Sachidananda Murthy
A home called jail
V
ijay Mallya has made it clear that
he will not face trial in India,
unless he is assured that he will
not be sent to Delhi’s Tihar Jail. He is
scared of risking life and limb in India’s
largest prison. Tihar gained notoriety
after the unnatural death of biscuit baron
Rajan Pillai in 1995.
However, the comfortable incar-
ceration of AIADMK general secretary
Sasikala in Bengaluru’s central prison, as
narrated in the bold report of Karnataka
Deputy Inspector-General (Prisons) D.
Roopa, may make Mallya feel that his
home city is better than the adopted city
of Delhi.
In her report, Roopa
exposed the male-dom-
inated world of prisons,
where even facilities for
women prisoners are
determined by bribes
paid to male officers.
The under-trials, miffed
at the special kitchen set
up for Sasikala and her
sister-in-law Ilavarasi for a lump sum
pay-off of 02 crore and a recurring bribe
of 010 lakh a month, blew the whistle
on the jailers when Roopa went on a
surprise visit to the prison.
Roopa, however, paid the price for it.
Chief Minister Siddaramaiah shunted
her out of the prisons department, along
with her departmental head and the
prison superintendent.
In most Indian prisons—there are
1,401 of them, as per the National Crime
Records Bureau—jailers run their own
rackets. It is well known in Bengaluru
that a large army of agents had been re-
cruited by supporters of Sasikala to make
her four-year stay comfortable. The
touts offered big money to jailers to en-
sure that Sasikala conducts her political
meetings, gets her choice of meals and
sends couriers to relay her instructions
to AIADMK ministers and leaders.
Though it is police officers who head
prisons, the management is with jail
department officials who tolerate the
officers as necessary evil. The jailers are
notorious for switching off CCTV cam-
eras to torture whistleblowing inmates.
Prisoners who had made complaints to
Roopa have been transferred to other
prisons.
When VVIPs are jailed, the police
ask for special prisons
to shield themselves
from criticism. Thus
Lalu Prasad spent time
in special jails, while
the Delhi government
picked a police mess
as special jail for P.V.
Narasimha Rao. The for-
BHASKARAN
mer prime minister was
guarded by the Special
Protection Group, and the Tihar jailers
did not want the commandos to enter
the prison compound and see the way
the jail was run.
Though dozens of reports have been
written on jail reforms, the most famous
is by a committee headed by poet-turned
High Court judge A.N. Mulla in 1983.
But the Mulla report, like others, has
only been implemented in parts, which
means there are loopholes in the system
through which the rich and the powerful
can smuggle in money, cooks and even
ganja.
Unlike Mallya, nobody has declared
Sasikala as bankrupt.
sachi@theweek.in
THE WEEK Š JULY 30, 2017
“Of all the gin joints in all
the towns in all the world,
she walks into mine.” That’s
No 67 in the American Film
Institute’s list of top 100
Hollywood movie quotes.
Humphrey Bogart as Rick
Blaine in Casablanca (1942).
So, what is No 1? “Frankly, my
dear, I don’t give a damn.”
Anyway, gin daisy is the
latest cocktail name to be
added to the Oxford English
Dictionaries. It has been a
long time coming, consider-
ing that the first reference is
from Secret Out (1887): “We
sat with a list of those drinks
before us, and we chose a Gin
Daisy, a Rattlesnake, and a
Denver Sour.”
Psst, Bacchus devotees: 2
parts gin, 1 part each of fresh
lemon juice and club soda,
3/4 part grenadine. Ice, of
course. Shake. Pour. Garnish:
cherry + lemon twist. You are
welcome!
MILESTONES
Swiss marvel: Roger Federer
beat Marin Cilic 6-3, 6-1, 6-4
on July 16 to win his eighth
Wimbledon title and 19th Grand
Slam championship overall. The
35-year-old moved past Pete
Sampras and William Renshaw,
who won the grass-court major
seven times each, and became
the oldest champion at the All
England Club since 1930.
A legend leaves: Actor Martin
Landau, best known for his roles
in Cleopatra and the television
series Mission: Impossible, died in
Los Angeles. He was 89. Landau
had won the Academy Award for
Best Supporting Actor in 1995 for
portraying the horror movie star
Bela Lugosi in Ed Wood.
14 THE WEEK Š JULY 30, 2017
APERITIF party snacks

RUFFLING RAI
VINOD RAI, CHAIRMAN of the
BCCI’s committee of administrators, is
struggling to deal with the controver-
sies in Indian cricket. Apparently, he
is weighed down further by the antics
of C.K. Khanna, BCCI acting presi-
dent. Notorious for being publicity
hungry, Khanna often fights to stand
bang in the middle of post-match
presentations, so that no one can crop
him out of pictures. He also pesters
Rai whenever the CoA prepares to
issue a press release. He reportedly
makes calls and sends messages, ask-
ing Rai to include his name in the
press release. Apparently, Rai is so fed
up that he has told the BCCI’s media
department to send handouts without
getting them undersigned.

ILLUSTRATIONS: JAIRAJ T.G.

An atheist’s prayer What about the rising number of communal

THE CENTRAL BOARD of Film
Certification has stalled the release
of a documentary on Amartya Sen,
because the director refused to beep
out four words—‘cow’, ‘Gujarat’,
‘Hindu India’ and ‘Hindutva view
of India’—that the Nobel laureate is
heard saying in the film. A known
critic of the BJP, Sen, however,
feels he should not speak about the
issue. “I think this is not the issue on
which I want to launch a debate,” he
said. “I should let others speak on it
rather.”
clashes in West Bengal then? An avowed atheist,
Sen said he would “pray” so that his home state
remains free of tensions.
Fretting about happiness
ANDHRA PRADESH RECENTLY became the sec-
ond state in the country, after Madhya Pradesh, to
establish a ‘happiness index’ department. Headed
by Chief Minister N. Chandrababu Naidu, the
department is tasked with measuring and improv-
ing the happiness level of the people. The initia-
tive, however, has become a source of distress for
one official, who recently told Naidu that 97 per
 THE WEEK Š JULY 30, 2017 15

cent of the people in the state were happy. India’s own CIA
Far from being impressed, Naidu asked the AS NATIONAL SECURITY adviser, Ajit
official why the remaining three per cent Doval knows he is supposed to address
were unhappy. The poor official had no India’s security concerns. What he didn’t
answer, so Naidu asked him to look into the know, until recently, was that he would also
matter and submit a report at the depart- have to firefight on behalf of intelligence
ment’s next meeting. agencies. Recently, a section of the media in
India reported that the Delhi Police special
cell had arrested an Islamic State operative
after a tip-off from the CIA. But, contrary
to what the reports indicated, CIA did not
stand for the US Central Intelligence Agency.
As Doval made it clear later, CIA meant a
specific Indian central intelligence agency.
Apparently, he now wants officials to be crys-
tal clear when they talk to the media about
intelligence matters.

No-show minister
THE UNION MINISTRY of skill develop-
ment and entrepreneurship recently cel-
ebrated its second anniversary. Present at the
event to mark the occasion were Rajiv Pratap
Rudy, minister of state who holds inde-
pendent charge of the portfolio, and other
ministers handling rural development, oil
and natural gas, textiles and water resources
portfolios.
Labour and Employment Minister Bandaru
Dattatreya, however, was conspicuous by
his absence. After all, it was his ministry
who gave birth to the skill development
portfolio—by transferring some of its man-
dates to the new ministry. If Dattatreya’s
absence wasn’t odd enough, H.R. Nagendra
of the Vivekananda Yoga Anusandhana
Samsthana attended the event. Known to be
Prime Minister Narendra Modi’s yoga guru,
Nagendra is likely to be given the task of
training yoga instructors under a pact with
the skill development ministry.

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18
CURRENT EVENTS
PTI
The Uri
dossier
India confronts Pakistan with ‘smoking guns’.
But Pakistan is unlikely to respond
BY NAMRATA BIJI AHUJA
M
ade in Pakistan”,
screams India’s latest
dossier to its neigh-
bour. The National
Investigation Agency prepared the
dossier on the Uri strike of September
18, 2016—four terrorists had crossed
the Line of Control and lobbed gre-
nades at the Army brigade headquar-
ters in Uri, Jammu and Kashmir,
killing 18 Indian soldiers. In retali-
ation, the Indian Army destroyed
seven Pakistan army-guarded ter-
rorist launchpads across the Line of
Control on the night of September 28,
and vowed that it would produce evi-
dence of Pakistan's complicity in the
Uri attack.
New Delhi handed over the dossier
to Pakistan through diplomatic chan-
nels in June, said top NIA sources.
THE WEEK has accessed the dos-
sier. It contains questions which, if
Pakistan truthfully answers them,
can expose its role as a terror sponsor.
The NIA has unearthed minute
Pakistani connections to the terror-
ists who carried out the Uri attack,
the deadliest attack on security
forces in Kashmir in more than two
decades. The dossier says Pakistani
masterminds leave nothing to chance
when it comes to arming terrorists.
Interestingly, the four terrorists were
THE WEEK Š JULY 30, 2017
Unanswered questions: Army men at
the Uri brigade headquarters during the
attack
carrying stuff made in Pakistan—fac-
tory made shawls, medicines, bat-
teries, biscuits, chocolates and Tang
(instant drink mix).
The 13-point dossier contains
details of several companies, such
as Coronet Foods Pvt Ltd in Khyber
Pakhtunkhwa, which makes Sooper
egg and milk biscuits; Mondelez
Pakistan Limited, which makes Tang
in different flavours; and National
Foods Limited based in Karachi,
which is famous for making Fruities,
a drink.
“We have got enough evidence—
both material and technical—that
shows the Uri attack was carried
out from Pakistan,” NIA Director
General Sharad Kumar told THE
WEEK. “All the evidence has been
shared with Islamabad and we want
them to respond so that we can take
the case forward.”
He said no charge sheet was filed
as all the terrorists had been killed
and there was no other accused in
the case. “For further progress in
the case, Pakistan will need to tell us
about all the evidence we have shared
20 THE WEEK Š JULY 30, 2017
INTERVIEW
SANJAY AHLAWAT

Dr Jitendra Singh, Minister of State, Prime Minister’s Office
Jammu and
Kashmir doesn’t
require a solution
BY NAMRATA BIJI AHUJA
How will the Goods and Services
Tax impact India’s economic future?
It is a revolutionary reform. It is for
the first time in 70 years that there has
been a true reassertion of our com-
mitment to the federal structure. This
will bring in a new culture of coopera-
tive federalism.
What about the transition phase? Do
you foresee any problems?
Initially, for three to four months,
there will be problems of transition
because of an initial hesitation. But,
that is normal. Inherently, human
beings are status quo-ist. So, there
might be a short period where there
may be paucity of certain goods and
fluctuation of prices. But, in the long
run, it will not only streamline pric-
es, but also reduce prices for certain
goods.
From the point of view of the con-
sumer, there is a long list of items that
have been exempted, including dairy
products like milk, buttermilk and
curd, cereals like wheat and common
household items such as toothpaste
and tooth powder. So, this is going to
be a win-win situation.
Kashmir is an integral part of India, and the only
issue, if at all there is one, is how to retrieve
the part that continues to be under the illegal
occupation of Pakistan.
It will also bring in a huge behav-
ioural change in the Indian society.
The GST has got four slabs—5, 12, 18
and 28 per cent. For example, luxury
cars are placed at 28 per cent. If we
can spend on dining or partying,
why should we have a problem pay-
ing tax? With the enlargement of the
tax pool, the state exchequer will get
reinforced and provide better fund-
ing to pro-poor schemes. So, the poor
man will benefit and tax evaders will
become tax payers.
Another related advantage is that
it will reduce bribery and corrup-
tion. For example, there have been
inter-state taxes and large queues at
toll booths, where people bribe to get
through faster. All this will end.
Do you think the spat over the
presidential candidate between
the ruling party and the opposition
hit the dignity of the chair of the
president?
The opposition parties were slightly
rattled; they had nothing against the
candidate nominated by the BJP.
Ram Nath Kovind is a candidate with
immaculate credentials and, coming
from a humble background, he repre-
sents the lowest of the lowest section
THE WEEK Š JULY 30, 2017 21
of society. He is a role model for oth-
ers to follow.
Home Minister Rajnath Singh
said the government will find a
permanent solution to the Kashmir
problem. Is it a political solution?
My take is that Jammu and Kashmir
does not require any solution. I have
always held the view that Jammu and
Kashmir is as much an Indian state
as Punjab, Uttar Pradesh or Tamil
Nadu. There are problems in three or
four districts. These problems have
been initiated by a hostile neighbour,
namely Pakistan, which has exported
terrorism into the Kashmir valley.
[This] is promoted by some political
elements in the valley who want to
take forward their agenda. Kashmir
is an integral part of India, and the
only issue, if at all there is one, is how
to retrieve the part that continues
to be under the illegal occupation of
Pakistan. Areas like Pakistan occu-
pied Kashmir and Gilgit-Baltistan.
Like other princely states, when
Jammu and Kashmir was handed
over to India by the then Maharaja
Hari Singh, the territory was much
larger than what it is today as part
of India. The Jammu and Kashmir
we have today is just one third of the
original princely state, and, therefore,
the only pending issue is to restore it
back to its original territorial integ-
rity.
There has been talk of declaring Lok
Sabha seats from Pakistan-occupied
Kashmir.
Yes, there has been such a sugges-
tion. Or even to allot 24 seats of the
legislative assembly [to the region].
As long as we claim that that part of
Kashmir is being illegally occupied by
Pakistan, there is merit in this sugges-
tion.
What about talks with Pakistan?
When can we expect any movement
on that front?
That is not for me to answer. The
ministry of external affairs has to
take the call. They judge the situa-
tions and take cognisance of various
inputs and devise a strategy from
time to time. ◆
22 THE WEEK Š JULY 30, 2017
JAMMU & KASHMIR

Life after death

Burhan Wani’s tomb has become a shrine for many Kashmiris,
who flock to the place to seek his blessings

BY TARIQ BHAT farmer, said his crops grew much Two days before the first anni-
better after he sprinkled soil from versary of Burhan’s death, soldiers

A
fter killing Osama bin Burhan’s grave on his field. “It is no from the Rashtriya Rifles (RR) were
Laden in a daring raid on less a shrine for us. Here, I still have seen frisking visitors to the grave. As
his safe house in Pakistan, some soil from his grave in my pock- the separatists had urged people to
American commandos et,” he said, patting his shirt pocket. assemble at Tral for the death anni-
dumped his body in the sea. The “People come to Burhan’s grave and versary, even those who were passing
Americans were sure that if the Al leave after picking a fistful of soil,’’ through the area were subjected to
Qaeda chief were buried on land, said Abdul Hafiz (name changed), stringent checking. The government
the grave would become a shrine from Sharifabad. He was reluctant to suspended internet access across
for jihadis world over. What the talk freely for the fear of being interro- Kashmir and deployed a large con-
Americans feared about Osama is gated by the Army. The security estab- tingent of security personnel in Tral.
turning out to be true in the case of lishment is worried that the growing Security was also reinforced in other
the slain Hizbul Mujahideen com- popularity of Burhan’s tomb will parts of the state, including Srinagar,
mander Burhan Muzaffar Wani. reinforce the cult of martyrdom that Pulwama, Anantnag, Kulgam and
He was killed in an encounter with is fuelling militancy in south Kashmir. Shopian. A few attempts to take
security forces on July 8, 2016, at
Bamdooru village in Kokernag, south
Kashmir. A year later, people from
his hometown, Tral, and other parts
of Kashmir have started visiting his
grave in the village of Sharifabad for
prayers and blessings.
Burhan is buried next to his
brother Khalid, who, too, died in an
encounter with security forces three
years ago. Burhan’s tombstone has
his name, the names of his parents,
his place of birth and the date of his
death. The grave is marked by a rope
and a few flags in green and light blue.
There is nothing ostentatious about
the grave, like the mausoleums of
some revered preachers and mystics.
And, groups like the Lashkar-e-Taiba
do not approve of the saint-like status
being accorded to Burhan. Yet, peo-
ple, mostly men, flock to the place to
offer ritual prayers. They leave with a
handful of soil, hoping for blessings,
healing and even better harvest. Some
UMER ASIF

visit the grave on their wedding day.

Ghulam Nabi Mir, a 65-year-old
24 THE WEEK Š JULY 30, 2017
COVER STORY
SANJOY GHOSH

A BATHLES
 THE WEEK Š JULY 30, 2017 25

S PATH
Brilliant boy vanishes into
the hard world of monks
who go begging food
and dispensing happiness
BY DNYANESH JATHAR/
Surat and Ahmedabad
26 THE WEEK Š JULY 30, 2017
COVER STORY

I
t is unlikely that Jigar Shah
will ever forget June 8, 2017.
As he woke up at four on
that Thursday morning in
a friend’s vacant apartment
in Surat, waves of memo-
ries swept his mind. Each
wave heaved with images of
his only son, Varshil, who would
no longer be his son. One wave
brought memories of him taking
baby steps. Another carried the
fragrance of flowers. “Our neigh-
bours called him Galgota; it means
bouquet of flowers,” Shah told me
later.
Varshil had already woken
up, so had his mother and sister.
Affectionately, Shah patted his
son, who had topped Gujarat state
in Class 12 exam a few days before.
Then he led the teenager, all of 17,
to the chariot—a decorated horse-
drawn cart—waiting outside the
apartment. Their relatives and
friends were forming a procession
behind the chariot. It would be
the boy’s last journey on wheels. Son, no more son: Income tax officer Jigar Shah and
The chariot would take him to a his mother at their apartment in Ahmedabad
hall where he would renounce the
world and take diksha as a Jain
monk. It would be his last journey as the son of his another lofted drive falling on a car’s windshield.
parents. No one shouted at the boys, not even the watchman.
Almost all the flats had their doors open, display-
THE NAME VARSHIL means ‘one who brings rain’. ing no fear of theft. Shah’s flat on the second floor
“It rained, after a long gap, on the day he was born in had no television, refrigerator, washing machine, air
August 1999. That is why we named him Varshil,” said conditioner, cooler, music system or tape recorder.
Shah, 49, who is an income tax officer. “Our monthly electricity bill is less than 1100,”
The Shahs live in Ahmedabad, in a two-bedroom Shah said. “We use the ceiling fan only in the room
flat in Amrapali Society in Paldi, an affluent locality where my mother sleeps. She is old. All of us have
known for the National Institute of Design and Le our dinner before sunset so we don’t need electric-
Corbusier-designed Sanskar Kendra museum. “Eighty ity even in the kitchen, except for the mixer.”
of 140 flats in Amrapali Society belong to Jains,” said Varshil’s mother, Amiben, 45, explained that a lot
Shah. “So we have a Jain temple on the ground floor.” of living organisms are killed in the process of gen-
In a big room next to the temple, children gather every erating electricity. Earlier, when Shah had returned
evening to play games and learn the basics of Jainism from office, he had promptly switched on the fan in
through stories told by an elderly lady. the living room. “We don’t want to force our beliefs
In another big room on the ground floor, Jain nuns on you. Please feel comfortable,” he had told me.
are staying. “They live here, praying and meditating, The room had just a wooden bed, a cupboard and a
till the monsoon ends,” said Shah. “They do not travel plastic chair for furniture.
during monsoon.” Asceticism has seeped deep into When Varshil was a child, he ate whenever he
the place where Varshil grew up. wished. But when he was three years old, he told
For an upper middle class society, Amrapali betrays his mother that he would also not eat after sunset.
few signs of wannabe elitism. I saw children playing One day Amiben forgot to give him dinner as she
cricket in the open space, one ball hitting a window, was busy attending to her father-in-law, who was
 THE WEEK Š JULY 30, 2017 27

of which ended with the main character taking diksha

(initiation into sanyas). “One day, after I had finished
telling him a story, he asked me why I had not taken
diksha,” recalled Amiben.
Shah spoke of two advanced calculators that Varshil
lost in school. Someone had stolen them. Perplexed,
Varshil asked his father why someone would think
of taking away something that did not belong to him.
Recalled Shah: “He did not use the word stealing as he
felt it was wrong to accuse someone. He simply could
not understand why. He never even looks at things
belonging to others, as it is prohibited in our religion,
since it may give birth to a desire for acquiring that
thing.”
Shah bought a Maruti Zen when Varshil was nine,
and the family went to watch a film at an open-air the-
atre. When they reached the venue Varshil told them
that he was not interested in the film. “So we bought
three tickets while Varshil sat praying in the park,”
Shah said. Varshil’s friend and neighbour Neel Parekh
said they had watched a few films together, such as
PHOTOS: JANAK PATEL

Captain America, Dear Zindagi and Piku.

unwell. At night, she remembered the lapse and
cooked food for Varshil. “But he said he would not
eat as the sun had set,” Amiben recalled.
Amiben said Varshil observed austerities of
chaturmaas—four rainy months of July-October—
right from the first standard. “Six years ago he
began sleeping on a thin woollen mattress and hav-
ing only one meal a day,” she said. The family goes
to bed at 8.30pm and wakes up at 4.30am.
Varshil grew up on a steady diet of stories, most
Varshil topped his school in the tenth class. “He con-
centrated hard on his studies, and had great respect
for his teachers,” said his sister, Jaini. “He would say
you may work hard but if you do not have blessings of
your teacher, it is of no use. He genuinely believed it.
He was very fond of mathematics, accountancy and
Sanskrit.”
Jaini herself scored 99.99 per cent in her 12th class
(HSC) and topped the state in commerce in 2011. She
was delighted that Varshil scored exactly same marks
and topped the state. Narendra Modi, who was chief
minister, had felicitated her. “My daughter wore a sari
for that function and Modi-ji appreciated it very much
and praised her. She has never worn jeans,” said Shah.
Bespectacled, she was in a simple Punjabi dress when
I met her.
Jaini is studying Jain scriptures herself. She turned

HE WAS EXCEPTIONALLY GOOD IN COMPUTERS

AND NEVER HELD BACK ANYTHING WHILE
SOLVING DOUBTS OF OTHERS. WHEN I HEARD
HIS SPEECH BEFORE HE TOOK DIKSHA,
I WAS MOVED TO TEARS. I WILL BOW
BEFORE HIM WHEN I MEET HIM.
CLASS TEACHER APURVA AGARWAL
28 THE WEEK Š JULY 30, 2017
COVER STORY
to religion and Sanskrit after she
could not clear the final CA exam
in the first attempt. “If passing CA
exam was my destiny, it would
have happened in the very first
attempt. It did not happen, it is
fine with me, I will continue to
study religion and Sanskrit,” she
said.
Varshil attended Sharda
Mandir School, an English medi-
um school in Ahmedabad. But he
went to a Sanskrit scholar to learn
the language. “All our scriptures
are in Sanskrit and Prakrit,” said
Shah. “His mother and sister
know Sanskrit very well. So they
also guided him.”
Varshil is the first in the Shah
family to take diksha. His cousin,
son of his maternal uncle, took
diksha two years ago, soon after
Varshil had written his 10th class
(SSC) exams. “He went to Surat
immediately after the exams and
stayed at the Upashraya with his
guru and cousin who was about
to take diksha,” said Amiben.
[Upashraya is a place where Jain
monks and nuns live, in separate
apartments.] “He was unwilling
to return, but we persuaded him.
After his 12th class exam, too, we
forced him to stay with us for a
month. Then he went to Surat, on
April 21. When his results were
out we wanted to celebrate but
he did not come.”
A new Shankara: The youngest of the initiates, 9-year-old Jinang, with
Navkar Public School in
the guru Kalyan Ratna Vijayji Maharaj, after the big diksha on July 3
Ahmedabad is a reputable insti-

WE KEPT EVERYTHING READY FOR THE

NEWSPAPERS. HE HAD TOPPED IN COMMERCE,
AND ALSO IN GUJARATI LANGUAGE PAPER.
BUT VARSHIL DID NOT COME TO COLLECT
HIS MARK SHEET OR THE SCHOOL AWARD.
JANAK PATEL

SCHOOL PRINCIPAL VRAJESH PARIKH


tution. A former coaching centre for CA, ICWA and
company secretary exams, it became a school two
years ago. Varshil was in the first batch.
he principal Vrajesh Parikh, a PhD in chemis-
T try, spoke of a group of magnificent seven stu-
dents of C-1 division. The brightest of them was
Kamlesh Gupta, who often scored a mark or two more
than Varshil. “Still they were best friends. I have never
seen Varshil being upset because Kamlesh scored a
mark more,” said Parikh. “There was not an ounce of
jealousy among these boys. Varshil stood out because
I have never seen him fight or argue with anyone.”
On the day the results of Gujarat HSC board exams
were declared, Parikh was informed that Varshil had
topped the state in the commerce stream and scored
THE WEEK Š JULY 30, 2017 29
99.99 per cent. “We kept every-
thing ready for the newspapers;
his photographs and marks scored
in each subject. Not only had he
topped in commerce, but he had
also topped in Gujarati language
paper,” said the principal. “But
Varshil did not come to collect his
mark sheet or the school award.
He was already in Surat with his
guru. A few days later, his parents
collected the mark sheet and the
award.”
The class teacher Apurva
Agarwal said it was Varshil who
wrote ‘Thought for the Day’ on
the blackboard every day. Said
Agarwal: “Whenever he met
teachers he would say ‘Namaste’
with folded hands. He said ‘Good
Morning, Sir’, at start of the day,
with a certain decorum and dig-
nity. Despite being intelligent,
he kept a low profile. He never
desired any special attention.”
Agarwal said Varshil came sec-
ond or third in class; Kamlesh
was the topper. “Kamlesh, even
if he missed one mark, would be
upset. Varshil was content with
his rank,” said Agarwal. “He was
exceptionally good in comput-
ers, and never held back anything
SANJOY GHOSH
while solving doubts of others. I
am not exaggerating: Varshil gave
the highest respect to all members
of the faculty. We were never ‘Sir’
to him, we were his ‘guru’ . When
I heard his speech before he took
diksha, I was moved to tears. I will
bow before him when I meet him.”
In that speech, Varshil said: “When I met my Guru
Maharaj I experienced the real happiness…. I wanted
to taste the real life, real happiness and I became firm
that I will take diksha…. The happiness I am enjoying
now, I cannot express in words. You have to experi-
ence it yourself.
When Varshil said he wanted to renounce the world
and take diksha, his father was shocked. Shah had
seen it coming but never thought it would be so early.
“Whenever I saw anyone taking diksha, I would see
in my mind my children taking diksha. Still, when he
told me about his decision, I was shocked,” said the
father. “I tried hard to dissuade him, told him to take
diksha after he had completed his education. But he
30 THE WEEK Š JULY 30, 2017
COVER STORY
had made up his mind.”
He reminded Varshil of an
expensive bike that he had prom-
ised to buy him; Varshil used to
ride his father’s bike occasional-
ly. Instead of riding the promised
fancy bike, the boy chose to walk
an austere path.
Varshil’s friends, too, tried to
persuade him not to take diksha
so early in life. Kamlesh was con-
fident that he would prevail. So,
on June 6, the six friends went to
Surat to meet him.

amlesh had met Varshil in

K Navkar school two years

ago and they became best
friends. “It did not make any dif-
ference to him that I came from
Hindi medium,” said Kamlesh.
On their first day in school
everyone had to say what they
wanted to become. As Varshil’s
turn came, he said wanted to be a
PhD in Sanskrit. “I was stunned,”
said Kamlesh. “Everyone comes
here wanting to be a CA, CS or
ICWA, and this boy talks about
PhD in Sanskrit! He made it clear
in those two sentences that his
pursuit was different from ours.”
Neel Parekh, the friend and
neighbour, recalled that after
returning from school Varshil
would go to the derasar (Jain Nun who made it: Armikumari, 22 (above); five of the
temple) to learn scriptures from Magnificent Seven friends and teacher (below)
his guru. “Every day he spent
more than two hours at the derasar in the evening. He
has been doing so for the past five years,” Neel said.
Varshil carried a chessboard to school for playing
during recess. “He liked to learn new things. He learnt
to ride a bike, a Splendor, very quickly. Recently he was
learning how to drive his father’s car,” said Darshan
Panchal, a classmate of his. Panchal recalled that
Varshil did revision of the entire computer lessons in
two days flat for the class, before the board examina-
tion.
Kamlesh said he had sensed more than a year ago
that Varshil was on his way to take diksha. “He was
getting too deeply involved with religious learning. He
JANAK PATEL

would go to meet his guru in Surat whenever we had

vacation or even a small holiday for a couple of days.”
Neel said Varshil had gone to Surat after writing his
HSC exams. Some time later, his mother and sister
 THE WEEK Š JULY 30, 2017 31

ARMIKUMARI DECIDED TO RENOUNCE

THE WORLD AFTER COMPLETING HER
EDUCATION. HER PARENTS, DILIPBHAI
AND MALLIKABEN, TOOK VOWS OF
CELIBACY ALONG WITH HER—PERHAPS
THEY WILL ALSO TAKE DIKSHA SOON.

second in the state but are you really happy and

satisfied?’ I told him ‘No’ and how I wished I had
scored full marks in accountancy. He asked, ‘Would
you have been happy and satisfied if you had scored
full marks in accountancy?’ He said even if I had
been the state topper instead of him, I would have
still felt unhappiness somewhere, so how will I lead
a peaceful life? ‘Human mind is not stable, it keeps
demanding more and more, so what will help you
lead a peaceful existence?’ he asked.”
The friends told him that he had a duty to his
parents who were growing old. Varshil replied that
life after marriage involved ever growing demands,
arguments within the family, between wives and
in-laws, and sons and parents. “He told us to look
SANJOY GHOSH

around in society. He said, ‘Don’t you see elderly

went to the Upashraya where he was staying with his
guru. “It was then that he told his mother that he had
made up his mind and did not want to come back,”
said Neel.
All of Varshil’s friends are believers but none of
them performs daily puja or any other ritual. Kamlesh
said he did not believe in following anything rigidly.
“For me, my parents are my bhagwan [God],” he said.
So when they came to know about Varshil’s diksha,
the friends went to Varshil’s parents. Kamlesh told
them they wanted to meet Varshil and ask him to opt
out. Without comment, Varshil’s father took them to
Surat.
Said Kamlesh: “When we met Varshil in Surat all of
us started crying. I told him to come back, complete
his studies, achieve something and then take diksha if
he still wished so. He said, ‘Kamlesh, you have stood
parents being moved to old age homes? Can you
say with certainty that you will be able to fulfil your
duty to your elderly parents? If my parents are feel-
ing sad now, they will feel even bad if I fail to fulfil
my duty towards them. This sadness is better than
the bitterness that may come in the future.’”
One of the friends, Dharmik Meheta, then sug-
gested that none of them should get married so that
they could fulfil their duty to their parents. “Varshil
merely smiled,” said Dharmik. “He told us to meet
him 20 years later and tell him whether we could
fulfil our duties to our parents and whether we were
happy in the material world.”
arshil Shah belongs to the Derawasi
V Shwetambar Jain sect. A person who aspires
to take diksha is called mumukshu, one who
seeks moksha (salvation). There is constant inter-
action between the seeker and the guru, who keeps
assessing whether the seeker is really ready for the
path ahead. When the guru feels that the seeker is
ready, then he chooses an auspicious muhurat for
the seeker to urge the guru for diksha. The seeker
has to make this request after careful thought. The
32
COVER STORY
Prince who chose to be pauper: Varshil at his first diksha on June 8
guru may accept or reject it.
This is the first diksha ceremony. Three or four
weeks later, after further assessing the seeker, the
guru orders another diksha ceremony. This is known
as vadi diksha (the bigger or final diksha).
Varshil’s first diksha was on June 8. Before leaving
for that ceremony he had performed rituals such as
vayna in which he was given sweets to eat. In the ritual
vidai he expressed his gratitude to elders; he washed
their feet with milk and showered akshata (unbroken
rice) on his parents. In turn, his parents showered
unbroken rice on him.
“The person taking diksha is dressed like a prince,
in finest clothes and ornaments. He gives it all away to
his mother, and throws away money, indicating that it
holds no meaning for him anymore,” said Shah.
In the diksha hall, Varshil performed a puja for
Mahavira, the last of 24 Jain teerthankaras, with flow-
ers and ornaments. He then performed a puja for his
THE WEEK Š JULY 30, 2017
guru, Kalyan Ratna Vijayji Maharaj,
with sandalwood powder. After doing
pradakshina (circumambulation)
three times, with a coconut in hand, he
gave up his fine clothes and ornaments.
Varshil was then given an ogho (a
wool broom) to clear his path, so as
not to harm to any living thing. Then,
the seeker is taken for his final bath, the
antim snan. Henceforth, there would
be no more bath for Varshil. He may
just sponge his body if it accumulates
too much dirt.
Varshil will no longer use any foot-
wear and wear only one piece of white
cloth. After the final bath, his hair was
plucked and given to his mother.
Varshil’s vadi diksha was at Western
Somchintamani Society in Surat on
July 3. Three others had the big diksha
on that day. All of them were under 18,
the youngest being 9-year-old Jinang
from Deesa, near Palanpur, in Gujarat.
Jinang’s father, jeweller Maheshbhai
Shah, looked very happy. I asked him
how his son could take diksha at the
tender age of nine. Maheshbhai said
it was a family decision and there
was no coercion. I was sceptical, but
he reminded me that Adi Shankara
renounced the world at the age of nine.
The air vibrated with Gujarati devo-
tional songs. Sanyam maaro shwas,
sanyam Prabhuno ehsas (Restraint is
my breath, Restraint is the feel of God),
so went one of the songs.
All these devotional songs had the tunes of old
Hindi film songs. One song described the respect that
a Jain monk commanded. Its tune was that of the old
Hindi film song Aaj purani raho se, koi mujhe awaaz
na de. An apt choice.
Then appeared a young woman, Armikumari,
22, to take her first diksha. She had completed her
education and then decided to renounce the world.
Her parents, Dilipbhai and Mallikaben, took vows of
celibacy, along with her—perhaps they will also take
diksha soon.
Along with the diksha ceremony, they conduct
chadhao, an auction of things that a Jain monk or nun
is allowed to carry. For instance, the Pothi (the book
of knowledge) that was to be given to Armikumari
fetched 172,000 in the auction. The rosary, called
navkar mantra mala, fetched 181,000. The money
thus collected goes to Jain charities or is used for
construction of Jain temples.

Varshil’s father, who had obtained permission for
my presence at the diksha, told me that the minimum
amount to be collected at Varshil’s chadhao ceremony
was 12 lakh. “Varshil did rigorous meditation in the 24
days between his two dikshas. Today he gets his guru’s
permission to study the wealth of knowledge in Jain
scriptures,” he said.
I had requested Shah to help me meet Varshil’s
guru, Kalyan Ratna Vijayji Maharaj. He said, “I could
get you this far. Now it is entirely up to Maharaj Saheb
whether to meet you or not.”
After waiting for three hours, I got a message that
the guru was meeting devotees and I could sit among
them in front of him.
A much respected figure in the Jain community
across India, Kalyan Ratna Vijayji Maharaj is in his
mid 30s. He took diksha at age 18. Though soft-spo-
ken in private conversations, he is a great orator who
explains the scriptures in simple yet powerful words.
“Diksha is the beginning of a cleansing of the soul,”
he told the devotees. “If your body is damaged but the
soul is clean and pure, you will be happy. But if your
soul is damaged, you will not be happy in any circum-
THE WEEK Š JULY 30, 2017 33
stances, however fit you may be physically. Diksha
also means sarva sanga parityaga (renunciation
of everything material). Tyaga is only temporary,
whereas sarva sanga parityaga is forever.”
He told me that diksha ceremonies were organ-
ised only twice or thrice in a year. Then he turned
to the topic of my interest, Varshil Shah.
Varshil had been in touch with him for more
than two years. They met regularly and Varshil
often posed questions and expressed deep inter-
est in the way of life of Jain monks.
“He was not happy with his success. He always
told me that he missed contentment. ‘I am rest-
less,’ he would tell me every time he came to meet
me. Given his academic background and intelli-
gence, I felt that he was not an ordinary boy. To
me, Varshil came across as a Truth Seeker, a satya
shodhak,” said the guru. “His intelligence and
inner strength will be of great help in following
true religious path and both are needed for life
after diksha.”
He said that the aftertaste of worldly experienc-
es was like a green chilli; the teachings of Jainism
34 THE WEEK Š JULY 30, 2017
COVER STORY
were like jaggery. “You can experience
both and decide for yourself. What I
can tell you for sure is that our jaggery
has no side effects.”

ain monks live a hard life. They

J walk barefoot, wear only white

cotton cloth, and eat just one
meal a day. A monk visits one house in
a day, seeks food and accepts it in his
cupped palms. The food thus collected
is handed over to the guru. He mixes
all the food brought by his disciples and
distributes it.
The monks are not allowed to take
bath—this is to safeguard the life forms
in the water. At the most they can
sponge themselves using boiled water.
During chaturmas, which coin-
cides with the monsoon, they live in
Upashrayas. After chaturmas, they set
out for vihar, travelling to places cho-
sen for them by the senior-most monks.
During vihar, they cannot spend more
than one day in any village on the way.
Bodily excretions are managed in open
spaces in villages, but Upashrayas in
towns have toilets. “The life is very
tough. It is like chewing iron nuts
with teeth of wax,” said a person who
attended Varshil’s diksha.
My eyes were searching for Varshil
all the while. He was nowhere to be 99.99 per cent monk: Varshil Shah at his first diksha in Surat on
seen in the Upashraya hall where I sat. June 8, after his hair was plucked
After my interaction with his guru, I
was told that he was reading scriptures
in one of the rooms. I wanted to hear
from him why he took diksha. him not to accept a promotion, saying work in the
I could not meet him, but a good soul, a layman, income tax department involved temptations and
agreed to be a go-between. I sent him WhatsApp and sins. “One can never know when one falls prey to
text messages, which he read out to Varshil and then the lure of the material world,” Varshil had told him
sent back the boy’s replies. Did Varshil miss his fam- four years ago. Shah went by his son’s advice.
ily and friends? I asked. “All the world is my friend July 3 was the last day Shah could call his son by
and relative now,” came the reply, promptly. “I wish name. Now, in his text messages to me, he refers to
to spend my life under the guidance of my Guru and Varshil as Suvirya Ratna Vijayji Maharaj Saheb, his
without harming any small or big living being. There new name. “It is like Varshil has had a new birth,”
is a lot to be learnt on my path and it is difficult to Amiben had said a few days after his first diksha.
explain all the things that we study. What I can say I could see that all of them missed Varshil, even
is that I do not wish to waste time, as life is short and though his mother said she was happy he had made
I have to gain a lot of knowledge.” the right decision. The father admitted that he
By then Shah and his family were getting ready to missed the son. “Every day when I returned home
return to Ahmedabad. Ever since Varshil took dik- after office, I would call him and say, ‘Beta Varshu,
sha, his father, mother and sister were eating only paani’ (Get me water, dear son),” he said. His eyes
one meal a day, like him. were moist, as he kept staring at the photograph of
Shah had told me that his children had persuaded his son, now Suvirya Ratna Vijayji Maharaj. ◆
36 THE WEEK Š JULY 30, 2017
BJP’S TOP PICKS

Offices
of profit
President and vice president
will not be just ornamental
posts for the Modi government
BY PRATUL SHARMA

D
uring the initial days of the Narendra
Modi government, President Pranab
Mukherjee invited Union minister
Venkaiah Naidu for a function at
the Rashtrapati Bhavan. It turned out to be an
unpleasant experience for Naidu. As the pro-
tocol demanded, toasts were raised and meals
were served in courses. Before leaving, Naidu
requested Mukherjee that he be excused from
official functions as he found the protocol stifling.
Mukherjee, however, did not stop inviting Naidu;
he made sure that his food was served in a thali. “I
like to eat my food at once,” Naidu would explain.
As Mukherjee makes way for Ram Nath Kovind New innings: shared a good rapport with Chief Minister Nitish
at the Rashtrapati Bhavan, and Naidu almost cer- Venkaiah Kumar. He regularly attended public functions,
tain to be vice president, there will be no escape Naidu and and is likely to do the same at the Rashtrapati
for him from the protocol. However, there will be Ram Nath Bhavan. On the other hand, in addition to man-
a bigger role to play for both of them than attend- Kovind aging the Rajya Sabha, Naidu will have to keep in
ing state banquets. mind the southern states, where the BJP is trying
With less than two years left for the Lok Sabha hard to make electoral gains.
elections, the elevation of the Kovind-Naidu Modi’s message was clear when he announced
duo is expected to help in Modi’s second bid for the names. He said Kovind would be “a strong
power. Kovind’s election would send a strong sig- voice for the poor, downtrodden and margin-
nal to the dalits, who make up about 16 per cent alised” and Naidu, “a farmer’s son”, would bring
of the population. In fact, it has already shown in “years of experience in public life”. The dalit-
some results. BSP chief Mayawati made a politi- farmer mention was clearly aimed at placating
cal move by quitting the Rajya Sabha, saying she the two electorally powerful groups that are cur-
was not allowed to raise dalit issues in the house. rently angry with his government.
It is said that she is trying hard to retain her erod- However, the larger message is that the top
ing dalit base. three positions in the country, for the first time,
As Bihar governor, Kovind was affable and are all occupied by BJP men with varying degrees

PTI
of association with the party’s ideological mentor,
the RSS. Kovind was never an active RSS man, but
had participated in the programmes organised by
it. Naidu, on the other hand, has always been vocal
about his association with the sangh parivar.
BJP general secretary Kailash Vijayvargiya
said it was wrong to associate the posts of presi-
dent and vice president with the RSS. “Both posts
are apolitical,” he said. “Kovind has worked for
dalits and the marginalised. Naidu has huge leg-
islative experience. When they chair such august
houses, political workers will gain.”
Naidu’s role will be more hands on than
Kovind’s. The BJP has only 56 members in the
Rajya Sabha, two fewer than the Congress. Ten
members of the house will retire next month, giv-
ing the BJP a chance to pick up a few seats. But
the tide will begin to turn only by next year when
THE WEEK Š JULY 30, 2017 37
Modi said Kovind would
be “a strong voice for
the poor, downtrodden
and marginalised” and
Naidu, “a farmer’s son”,
would bring in “years of
experience in public life”.
64 members will retire.
Once the numbers in both the houses are in
its favour, the Modi government is expected
to go for bolder policy changes and those need
constitutional approval. The prime minister
might push for simultaneous elections at the
Centre and the states, an idea he floated last year.
The aim is to give the prime minister unhindered
tenure, unburdened by frequent elections. But
the opposition fears that Modi may ultimately
push for the presidential form of government, as
it would not only suit his style of functioning but
also help realise the ultimate aim of changing the
constitution.
The other issues on the table are likely to be
the uniform civil code, removal of Article 370
and building of Ram temple in Ayodhya. Kovind
and Naidu would be ideologically aligned, unlike
Mukherjee and Hamid Ansari. However, while
Kovind’s personality is marked by reticence,
Naidu is known for speaking his mind.
The opposition says the Kovind-Naidu com-
bination spells trouble for the plurality of the
country. “Both the president and the vice presi-
dent belong to the RSS. So they cannot have an
approach which will be all-inclusive, given the
richness of India’s diversity. They come from a
sectarian school of thought. This is a wrong mes-
sage,” said Anand Sharma, deputy leader of oppo-
sition in the Rajya Sabha.
CPI(M) leader Mohammed Salim, MP, said the
BJP’s game plan was to get the numbers, and the
talks of governance were mere tactics. “They did
not hold any discussion [while selecting the presi-
dent and vice president candidates]. There was
no discussion of the names, not even in the NDA.
The direction had come straight from the sangh.
This is only indicative. If they get the numbers
in the Rajya Sabha, they will become authoritar-
ian—focusing on one-party rule, one policy, one
language, one religion.” ◆
38 THE WEEK Š JULY 30, 2017
BJP’S TOP PICKS

Smashing choice
Naidu will change the way vice presidents function, says his childhood friend
BY LALITA IYER Dr Kancherla Ravindranath, Naidu’s ground,” said R.A. Padmanabha Rao,
childhood friend. “He will change the a schoolmate of Naidu, who retired

W
hen he was sounded
out to be the BJP’s
vice presidential can-
didate, M. Venkaiah
Naidu was initially reluctant.
However, being the quintessential
partyman, he yielded, and agreed to
contest.
“He will find a lot of work, con-
tribute both to the state and to the
nation and, of course, to Nellore [his
hometown in Andhra Pradesh],” said
SANJAY AHLAWAT
way vice presidents function.”
Naidu was born on July 1, 1949, at
Chavatapalem in Nellore district to
Ramanamma and Rangaiah Naidu.
He studied at the DLNR government
high school in Bucchireddypalem, a
small village near Nellore. “In 1996,
Naidu, me and some others were
felicitated during the golden jubilee
celebrations of the school. He spoke
about his school days and said how
most students were from a rural back-
as additional director general of
Doordarshan.
Naidu graduated in politics and
diplomatic studies from V.R. College,
Nellore. He was influenced by Durga
Prasad, a local RSS pracharak, who
became his guide, philosopher and
mentor. During this time, he also
got a chance to meet RSS chief M.S.
Golwalkar, when he visited Nellore.
Padmanabha Rao recalled an inci-
dent that happened when Naidu was

an undergraduate. “There was a mov- ments. There used to be an opposition
ie hall in Nellore called Kanakamahal, group, but it was never like what it is
owned by a person called Kantha today. There was no violence because
Rao. He was the terror of the town. better sense prevailed then,” said
Once, he beat up a student. This made Vasireddy.
Naidu angry, and he did not hesitate The four friends still keep in touch.
to challenge Kantha Rao.” They normally catch up for lunch at
After his graduation from V.R. Atluri’s house in Visakhapatnam.
College, Naidu took his LLB, with spe- “The last thing we discuss is politics,”
cialisation in international law, from said Vasireddy. “We talk about the
Andhra University, Visakhapatnam. good old days and share other such
He was at the forefront of the Jai memories.”
Andhra movement [in response to Ravindranath, too, spoke about
the Telangana movement] at the Naidu’s leadership during the Jai
time,” said Tapovardhan Vasireddy, Andhra movement. “Those days there
who was his senior at the university. were no microphones, but he and a
Vasireddy had invited Naidu to share Communist friend Jana Venkaiah
a house with him and two others, were loud, bold speakers and did not
Ashok Atluri and Damodar Prasad. need microphones. We would lis-
“We were all involved in student ten to his fantastic voice and remain
activities, and those days it meant spellbound,” he said. Ravindranath
organising programmes and tourna- was Naidu’s junior by eight years. His
Naidu is a gracious host who
always welcomes everyone to
eat at his house, where the table
will be full of vegetarian and non-
vegetarian delights, but no alcohol.
father, Seshaiya Naidu, often spoke
very fondly of Venkaiah Naidu. “He
used to say, ‘veedu mogadu, pedda
leader aytadu (He will become a big
leader),’” said Ravindranath.
Naidu’s oratorical skills and politi-
cal acumen saw him rise rapidly
in Andhra politics. The Jai Andhra
movement and the anti-Emergency
protests kept him in the limelight.
He was elected to the assembly from
Udayagiri in Nellore district in 1978
and in 1983. “Friends got together and
financed his election the first time he
contested,” said Vasireddy.
Naidu is known for his unbridled
energy. He could cover three to four
Right move: states in a day. Once, Maoists target-
Venkaiah Naidu ed his helicopter, but he managed to
playing badmin- escape unhurt. And, there have been
ton at his house nearly a dozen occasions when his
in Delhi aircraft developed technical snags
THE WEEK Š JULY 30, 2017 39
and had to make emergency land-
ings. His friend Mandava Prabhakar
Rao, chairman of Nuziveedu Seeds
Ltd, said Naidu was a man of tireless
energy, with an absolute focus on his
goal. “His day starts very early. If time
permits, he plays a game of badmin-
ton or takes a brisk walk. His punc-
tuality is something that all leaders
should follow. He is always five min-
utes ahead of his appointed time,”
said Prabhakar Rao.
His friends say Naidu is a gracious
host who always welcomes everyone
to eat at his house, where the table
will be full of vegetarian and non-veg-
etarian delights, but no alcohol. “He
is extremely fond of pickles, chut-
neys and fish, but since he became
diabetic, we have prevailed upon
him to control his eating habits,” said
Ravindranath.
His fondness for non-vegetarian
food is legendary. Many years ago,
a Congress leader told him that the
Jana Sangh was a party of vegetarians,
which worried him a lot. He could
relax only after senior Jana Sangh
leaders assured him that he could eat
whatever he liked. Naidu once broke
a longstanding convention by offer-
ing non-vegetarian food at a state
executive meeting of the BJP. The
delegates, however, heartily enjoyed
the meal.
Naidu is also known for his phil-
anthropic activities. “His passion for
service to society made him encour-
age his children and friends to start
the Swarnabharat Trust, which has
now got three chapters in Nellore,
Vijayawada and Hyderabad,” said
Prabhakar Rao. Naidu’s daughter
Dipa heads the trust. It provides
education to the poor, orphans and
differently-abled children, and
employment training to women and
the youth. Naidu’s son Harshvardhan
lives in Hyderabad, looking after his
Toyota dealership. Prabhakar Rao
said Naidu mentored his children to
focus on the trust to serve people. “He
has set a high standard for other poli-
ticians by not encouraging his chil-
dren to enter politics.” ◆
40 THE WEEK Š JULY 30, 2017
BJP’S TOP PICKS

Wise act
Naidu will add vigour to vice president’s job
dream into a doable project was no
mean task. He introduced the sys-
tem of competitions, leaving it to cit-
ies themselves to come up with their
smart ideas. Naidu’s announcements
of results were reminiscent of school
BY REKHA DIXIT tests. He would laud top performers
and give extra time for a “retest” to

I
nitially, Venkaiah Naidu was not He has managed to keep his identity cities that had failed by a fraction. The
keen on holding higher offices. intact, yet, came to the limelight as competition model worked so well
“I neither want to become rash- the spokesperson of the party. Even that he used it to rate cities and villages
trapati, nor do I want to become up- as he has opposed the imposition of for the Swachh Bharat mission, too.
rashtrapati. I am happy being Usha’s Hindi, he encourages people to learn Naidu knows when and how to
(his wife) pati,” he had quipped. the language. His Hindi stands out crack the whip. Clearing up Lutyens
Then, a few days ago, BJP president among colleagues who have a pen- Delhi bungalows of occupants who
Amit Shah approached him with the chant for the high-brow, de-Urdufied are no longer entitled to those quar-
proposal for vice presidency. version. ters is not a popular task. But one does
There was only one little problem. An agriculturist by birth, he thrived not cross swords with Naidu.
Naidu was happy with his existing in his first ministerial appointment A foodie at heart, Naidu has to
job, handling two big ministries and as rural development minister under watch his diet now, because of his
being in the thick of party decisions. Atal Bihari Vajpayee. When he took diabetes problem and bariatric sur-
For a man who doesn’t like one idle over the urban development port- gery. Luckily for his guests, he is also
moment in his day, the thought of folio in the Narendra Modi govern- passionate about feeding people and
a relaxed appointment was unap- ment, he said his move from RD to UD discussing dishes and recipes with
pealing. was symbolic of India’s rapid march them. He once even demonstrated
He had a huddle with his closest towards urbanisation. before guests how to eat a deep fried
aides. “We realised that for the next Naidu was tasked with a very ambi- Andhra chilly.
few months, he would be busy with tious dream of Modi, who announced Naidu may face a lot of heat in the
the Rajya Sabha, where the National the development of 100 smart cities Rajya Sabha soon. That will keep him
Democratic Alliance is still weak in soon after taking oath. Putting that going. ◆
numbers,” said an aide. “He would
also have more occasions to indulge
in a favourite activity, travel. Also, he
could inject new vigour into the post,
just as A.P.J. Abdul Kalam had done
with the presidency.’’
Naidu said yes. Yet, it was a bit-
tersweet moment. He was leaving
behind a party that had been a foster
mother to him. An important part in
the life of a man who lost his mother
in a tragic accident when he was just
a year and a half old. She was gored to
death by a bull.
The new job will change the life of
at least one family member, his wife,
who has always kept away from the
limelight. Now, she may have to step
out of the shadows. Naidu’s staff had
to use oodles of coercion to get her to
pose for a picture, offering a sweet-
meat to her husband.
Naidu stood out in his party, one
which is largely vegetarian, north Man of the moment: Giving up active politics
Indian, and of Brahmins and Baniyas. was a bittersweet decision for Naidu

Action, accommodation
Mass movements and extensive friendships have fuelled Naidu’s journey
BY B. PRABHAKARA SARMA
V
enkaiah Naidu was a dynamic
23-year-old when he plunged
into the Jai Andhra move-
ment of Andhra Pradesh in 1972.
Led by stalwarts such as Tenneti
Viswanatham and Sardar Gouthu
Latchanna, the agitators demanded
that Coastal Andhra and Rayalaseema
regions be made a new state, leaving
out the Telangana region. Mass move-
ments such as Jai Andhra defined
Naidu’s political journey in the sev-
enties, according to Kambhampati
Haribabu, Lok Sabha member from
Visakhapatnam who is president of
the BJP in Andhra Pradesh.Naidu was
also active in Jayaprakash Narayan’s
Total Revolution movement, which
made prime minister Indira Gandhi
impose Emergency in 1975 and sup-
press fundamental freedoms.
SANJAY AHLAWAT
Naidu has always been
in the thick of people’s
movements. He seems
to revel in it.
Kambhampati Haribabu,
MP, president, Andhra Pradesh BJP
“I was a student of engineering
in Andhra University and he was in
law college during Emergency. I was
imprisoned for six months and Naidu
for 17 months,” said Haribabu. “He
has always been in the thick of peo-
ple’s movements. He seems to revel
in it.”
In the nineties, when governor
Ramlal dismissed the N.T. Rama Rao
government, Naidu was in the fore-
front of the Save Democracy agitation
that saw the actor-politician restored
to power in Andhra Pradesh. “Naidu
was then an independent MLA from
Udayagiri and had nothing to do with
Rama Rao’s Telugu Desam Party. Yet
he fought the dismissal tooth and
nail,” said Haribabu, who retired as
professor from the engineering col-
lege he had attended.
A Nellore farmer’s son, Naidu
started as an RSS volunteer and cul-
tivated and maintained friendships
across ideological lines and is known
THE WEEK Š JULY 30, 2017 41
for his spirit of accommodation. Once
a journalist from a newspaper known
to be critical of the BJP met Naidu in
his room in Delhi. Naidu at that time
was party general secretary. As she lit
a cigarette, Naidu said he was uncom-
fortable inhaling tobacco smoke. The
journalist said she would leave if she
could not smoke. Naidu swallowed
his pride, as well as the smoke, to
avert embarrassment.
Naidu has been adept at handling
the media. He would effortlessly dic-
tate the lead paragraph, as well as the
details, to help young reporters file
good copy. And his media briefings
were always held in the morning so
that the evening newspapers did not
miss what he had to say. Naidu has
elephantine memory, and has always
greeted reporters and party work-
ers by their name, even when he met
them after years. During a visit to
Singapore, where the World Telugu
Conference was held 15 years ago,
he was received by an NRI who had
settled down there in the early 1990s.
Naidu asked him, “How are you,
Satyamurthy?” to the delight of the
NRI, who told the assemblage how
thrilled he was that the tall leader
cared to remember him.
Naidu during his early days was
not comfortable speaking in Hindi,
but he soon mastered it. Now he
speaks Hindi with the same felicity
as English. In Telugu, he is an orator
of acclaim. Though he rarely mount-
ed personal attacks on his political
rivals, his comments could be caus-
tic. As cabinet minister under prime
minister A.B. Vajpayee, Naidu was
once so vexed with criticism by the
Congress that he told reporters: “The
Congresspeople blame the BJP for
everything in the world. Even when
they don’t produce children, they
blame it on the BJP!” ◆
42
pmo beat ● R. Prasannan
Military reform: doctrines in lapse
T
here is a stalemate at
Doklam. In chess and war-
fare, a stalemate is reached
when neither side is able to march
forward, backward or sideward.
But the Chinese have stolen a
march over us. They have rejigged
their People’s Liberation Army,
whereas we have given a decent
funeral to the last man who told us to
reshape our military.
Literally! Naresh Chandra, the last
expert who suggested security re-
form, got a decent funeral two weeks
ago, with even the PM tweeting a
homage that he “was an outstanding
public servant...” RIP!
Chandra’s report, submitted in
2012, had asked the government to
appoint a permanent chairman to the
chiefs of staff committee, and to set
up three tri-service commands—for
special ops, aerospace, and for cyber
warfare.
A few earlier committees—not
Chandra’s—had recommended
dismantling the present separate
commands of each service and setting
up joint theatre commands. Thus, the
western theatre against Pakistan
would be headed by a general
who would have not only several
army divisions, but also fighter
squadrons at his disposal. The
China front would be looked af-
ter by an air marshal who would
have troops and tanks at his beck
and call, apart from his own
fighter planes. The seas would
be guarded by an admiral who
would have troops, tanks and
fighter jets under him.
Would it work? Well, it ap-
pears we are waiting for the Chinese
to tell us—after testing it against us!
Yes, they recently reorganised the
PLA into theatre commands.
Xi Jinping came to power in 2013,
and Narendra Modi in 2014, both
promising military reforms. It seems
Modi’s idea of reform is to buy a
few brand-new gizmos for the boys,
so that they can keep up with the
Joneses, the Jamals and the Jiangs
in the neighbourhood. He has shied
away from restructuring the military,
which remains in the same shape
as how Lord Ismay left it. The only
difference is that if the boys carried
Ishapore rifles in Ismay’s time, they
have INSAS rifles now.
Technological superiority of
weapons or numerical superiority of
troops need not always win battles.
Remember how the older and infe-
rior English longbow beat the supe-
rior French crossbow at Agincourt?
Battles are not won by armies which
have adopted new technologies, but
by armies that have adapted to new
technologies.
Look at the Chinese. They have
BHASKARAN
THE WEEK Š JULY 30, 2017
overhauled their military several
times since Mao took them on a Long
March. Yet, Xi called his 400-odd
generals to a conference in Gutian in
2014, and got them to agree to a huge
troop cut. Since then, he has divided
the old four general departments—
the general staff, the general political,
the general logistics and the general
armament—into 15 organs under six
new departments—joint staff, politi-
cal work, logistical support, equip-
ment development, training and
national defence mobilisation. The
old seven military regions (roughly
equivalent to our commands) have
been restructured into five theatre
commands in which all services and
arms come under one commander. It
is the new southern theatre com-
mander who is testing his new organ-
isational doctrine by threatening us
at Doklam.
How would it unfold if the balloon
goes up? In our case, the army com-
mander would have one assessment
of the situation, and the air com-
mander would have another. If the
army commander thinks that he
needs to bomb a few targets in Tibet
from the air before he sends in his
army, he would have to get it cleared
through the staff route at military
level, and the cabinet route at the
political level. In the case of the
Chinese, one commander will decide
whether to send fighter planes to
strike at targets in India or whether
artillery guns will do the job.
Which would work better? The
simpler longbow, or the complex
crossbow?
prasannan@theweek.in

TWITTER/@GEN_VKSINGH
Search is on:
V.K. Singh in Mosul
General V.K. Singh, minister of state for external affairs
There is reason for us to be optimistic
BY REKHA DIXIT
I
t is a homecoming the external affairs minis-
try has been unable to achieve, despite its rep-
utation of reaching out to Indians in distress
across the world. Three years ago, when the Modi
government was freshly sworn in, came the news
that Islamic State had abducted 40 Indians from
Mosul—most of them construction workers from
Punjab. Foreign Minister Sushma Swaraj has met
the families of the missing men around a dozen
times, the last being on July 16 after the libera-
tion of Mosul, but the reassurances of the ministry
haven't helped. Beyond words, and vague “sight-
ings” by unidentified sources, there is nothing to
prove they are alive. But, officials say, there isn't
anything to prove they are dead, either.
The liberation of Mosul has given the families
fresh hope of getting the men back, or at least
know for sure their fate. Minister of State for
External Affairs General V.K. Singh was sent to
Iraq soon after Mosul was liberated. He had the
two-fold mission of conveying to the Iraqi govern-
ment India's support in the fight against terror,
and of talking about the missing nationals.
Subsequently, the Iraqi government has assured
that its staff will be instructed to look out for any
Indian, not just the missing 39, as it secures Mosul,
street by street, house by house. After his return,
THE WEEK met Singh, who said there is reason to
be optimistic. Excerpts from an interview:
What is your impression of Erbil and Mosul?
I found Erbil to be a safe and vibrant city. There is
no threat in Erbil. However, Mosul is still unstable.
THE WEEK Š JULY 30, 2017 43
The western part of Mosul city is yet to be com-
pletely cleared of IS control. Besides, the threat of
IEDs [improvised explosive devices] planted by IS
still looms in Mosul.
What is the government doing to find the
Indians who were kidnapped?
The government has been making continuous
efforts to look for its missing nationals. We have
taken up the matter at all possible levels of the
Iraqi government, and have also been meeting
officials and dignitaries from the Kurdish regional
government. We set up a control centre in Erbil
in 2014, which was functional for two long years
before finally giving way to our consulate in Erbil
last year. Both our mission in Baghdad and consul-
ate in Erbil have been closely following the issue.
Do you think they are alive?
See, there have been no tragic reports on this
case in the last two years and, hence, there is a
reason for us to be optimistic and continue with
our efforts.
There has been no ransom demand, then why
would they have been kidnapped?
You have to understand that IS has not just been
capturing people for ransom, but they have also
been utilising the captured people as manpower
for their own projects. Like in the case of our miss-
ing nationals, they have been employed in various
activities, including agricultural activities.
Have you heard reports of recent sightings?
The last sighting, as informed to us, has been
in Badush, which is beyond the western part
of Mosul, and this area is still to be completely
cleared of IS presence. ●
THE WEEK Š JULY 30, 2017
THE WEEK Š JULY 30, 2017
 THE WEEK Š JULY 30, 2017
48
52
QATAR
Qatar’s efforts to fight the block-
ade have received a major boost
from the patriotic fervour shown by
its citizens. “Most locals are proud
of their country’s achievements and
they are quite alert to the impact of
the crisis on national sovereignty,
as well as the implications it has for
undermining their ruler, whom they
support,” said Rory Miller, profes-
sor of government at Georgetown
University, Qatar.
The unwillingness of the primary
adversaries to compromise and the
inability of the US to take a coherent
stand keep the Gulf crisis lingering.
Although the unmitigated support
from President Donald Trump was
among the major triggers behind
the Saudi decision to isolate Qatar,
the US state department and the
Pentagon have repeatedly acknowl-
edged the strategic significance of
Qatar. Moreover, Secretary Tillerson
and Defence Secretary James Mattis
are well acquainted with the Qatari
leadership, from their stints as the
head of ExxonMobil and the head of
the Central Command, respectively.
The Pentagon has made it clear that
it was not considering relocating the
military bases in Qatar.
Further support for Qatar has
come from Senate Foreign Relations
Committee chairman Bob Corker,
who warned that he would block
military sales to Saudi Arabia until
the dispute with Qatar was resolved.
Corker said Saudi Arabia’s sup-
port for terrorism “dwarfed” what
Qatar was doing”. “I think this is
an opportunity for us to call all of
them out—Bahrain, the UAE, all of
these countries that support terror-
ism.” He blamed Saudi Crown Prince
Mohammed bin Salman for the crisis,
saying the decision to target Qatar
was a rookie mistake.
Trump, however, continues to send
out conflicting signals. In an inter-
view with the Christian Broadcasting
Network on July 14, he said, “If we
ever had to leave, we would have 10
countries willing to build us another
one,” referring to the Al Udeid base.
THE WEEK Š JULY 30, 2017
He conceded that there were differ- intervention by the United States, the
ences between him and Tillerson crisis is likely to linger, which could
regarding the crisis. “Rex is doing a result in major geopolitical realign-
terrific job, but he and I had a little bit ments in the Middle East. It could
of a difference, only in terms of tone,” lead to a split in the GCC, drive Qatar
said Trump. conclusively into the Iranian orbit,
Interestingly, there are reports and raise the profile of Turkey. In
about a business deal gone sour that case, Kuwait and Oman, too,
between Trump’s son-in-law Jared might upgrade their ties with Iran
Kushner and the Qatari royals. Two and Turkey. “Qatar had looked to
years ago, Kushner had approached Turkey as an informal balancer of
former Qatar prime minister Sheikh Saudi Arabia. That has now become a
Hamad bin Jassim al Thani for $500 formal relationship,” said Miller.
million to refinance 666 Fifth Avenue, The possible way out is to start nego-
a property Kushner bought in 2007 tiations based on the six principles
for $1.8 billion. The deal, however, agreed upon by the quartet in Cairo.
turned sour as Kushner failed to secure It seems to be a climbdown from the
additional outside refinancing, which set of 13 “non-negotiable” demands.
was the condition imposed by Sheikh And, it could just be the opening to
Hamad. During the initial days after start a conversation, in which Qatar
the quartet announced its blockade, could make some concessions, allow-
Trump had made several comments ing Saudi Arabia and the UAE to save
supporting the move despite the res- face and de-escalate. But if that is not
ervations of the state department and the case, the Gulf states are looking at
the Pentagon. “Qatar, unfortunately, an extended season of estrangement,
has historically been a funder of ter- leading to a strategic, economic and
rorism at a very high level,” he said political crisis. ◆
on June 9, at a White House function.
According to some reports, Tillerson
believed that the statement was pre-
pared by the UAE’s ambassador to the
US, Yousef Al Otaiba, a close friend of
Kushner. On July 16, The Washington
Post broke a story citing US intel-
ligence sources that the UAE was
behind the hacking of Qatari websites
and planting false stories, which were
used as a pretext for the current crisis.
No wonder, Tillerson sounded
exasperated after his marathon
round of diplomacy in the Gulf capi-
tals, and pointed to the incoherence
in the US foreign policy mechanism.
He said resolving crises while he ran
ExxonMobil was much easier as he
was the ultimate decision maker and
as the company was much more dis-
ciplined than the US administration.
“It’s largely not a highly disciplined
organisation, decision making is frag-
mented, and sometimes people don’t
want to make decisions, coordina-
tion is difficult,” Tillerson said about
the US foreign policy establishment.
However, in the absence of a decisive

GUEST COLUMN
Neighbourhood wrath
The crisis has realigned the Gulf in a way that is certain to fuel tension
BY RORY MILLER/Doha
T
here is no sign that the Gulf crisis will
end quickly or decisively. The UAE-
Saudi Arabia axis will keep up its
official boycott and Qatar will continue to
look for other security and economic part-
ners inside or outside a moribund Gulf Cooperation Council
(GCC), but the public attacks will calm down and a sort of
dysfunctional status quo will return. This is, in part, because
Saudi Arabia and its partners don’t seem to have a plan B.
Their hope was that Qatar would buckle quickly under the
weight of the boycott, giving them a chance to renegotiate
their relationship. But, this has not happened and they are
doing nothing.
One of the reasons behind the inaction is the pressure from
Family first: US President Donald Trump, his son-in-law Jared
Kushner and economic adviser Gary Cohn with Saudi Crown
Prince Mohammed bin Salman during a visit to Riyadh
REUTERS
THE WEEK Š JULY 30, 2017 53
the international community not to escalate. Another rea-
son is the fear that if they take more severe action, it could
open a way for Turkey and Iran to get an even greater foot-
hold in the Gulf or lead to a clash with them. So, even if the
crisis ends suddenly, it has clearly realigned the Gulf region
in a way that fuels tension. For the last few years, Qatar had
looked at Turkey as an informal balancer of Saudi Arabia
and that has now become a formal relationship. Qatar has
always looked to balance its ties with Iran by supporting
Saudi Arabia on many issues. Now there will be much less
willingness in Doha to do so.
The crisis has shown the GCC to be an organisation that
provides little protection to its smaller members in a con-
flict against Saudi Arabia. That does not bode well for its
future viability. Regional organisations like the GCC are reli-
ant on shared goals and trust to function properly and the
present crisis has shown that both are now lacking. On the
other hand, it is arguable on some level that the existence
of the GCC went some way in preventing the militarisa-
tion of the crisis, as evident from the Kuwaiti mediation
and the lack of support among the GCC public for such
extreme action. This factor will most likely be ignored in
most assessments, but it is not insignificant.
Qatar, meanwhile, has held its position and has focused
on engaging with key regional and international partners,
rather than with its adversaries. It also emphasised the
damage the crisis is doing to regional stability. This has
proved a smart and effective move that has influenced
opinion in its favour.
At home, there has been huge support for the govern-
ment. Most locals are proud of their country’s achieve-
ments and that it has an independent foreign policy. The
government and the citizens are fully aligned in not giv-
ing in to the demands and are holding up well. Qatari
nationalism is at an all-time high. Qataris view the Saudi-
UAE action not just as a destabilising power play, but
more as a personal betrayal by its Sunni Arab neighbours
who share the same cultural and religious beliefs, as well
as extensive family and business ties. This has taken its
toll emotionally, as they realise that whatever happens
on the political level, they have to live with countries
that attempted to undermine their independence and
attacked them in the most hostile way, challenging their
legitimacy and history as well as their foreign policy.
Miller is a professor of government at Georgetown University in
Qatar, and the author of Desert Kingdoms to Global Powers: The
Rise of the Arab Gulf.
54
QATAR
SANJAY AHLAWAT
Interview/Saud Al-Sati, Saudi Arabia’s ambassador to India
Boycott till
Qatar changes
BY SACHIDANANDA MURTHY
S
audi Arabia’s Ambassador to
India, Saud Al-Sati, explained
to THE WEEK why his country
and its partners would continue to be
tough with Qatar.
Excerpts from an interview:
Why this sudden flare-up in
relations with Qatar? How
does it impact the unity of Gulf
Cooperation Council and its vision?
It was not a sudden decision. We
severed diplomatic ties with Qatar
to protect our security, and for the
stability of the region. Saudi Arabia’s
policy of zero-tolerance towards
terror has been supported by eight
Islamic countries which have sus-
pended relations with Qatar because
of its support to terrorist groups such
as Hizbullah, Muslim Brotherhood
and Houthi militias.
Saudi Arabia and other countries
affected by terrorism have been tell-
ing Qatar since 2012 to stop aiding
and giving base to terror groups. Qatar
assured through signed, handwritten
agreements in 2013 and 2014 that it
would end all support to terrorism,
but it has been duplicitous since then.
Our patience ended when yet again
the promise was broken, after the
anti-terror summit in Riyadh in May
this year.
Qatar calls the blockade illegal and
says it has affected its citizens and
economy. Qatar says thousands of its
people are trapped jobless in Saudi
Arabia and other countries in the Gulf.
There is no military blockade of Qa-
tari ports or airports. They are func-
tioning fully. Only airspace of the
countries which have cut diplomatic
relations is closed for Qatari aircraft,
and the country cannot use our terri-
torial waters.
Qatar has not stopped its media
THE WEEK Š JULY 30, 2017
from spreading mischief. We are not
against the people of Qatar. We are
unhappy with the way the government
of Qatar is handling things. We have
set up a [humanitarian] hotline for
families with Qatari members in
Saudi Arabia.
We will not relent till Qatar stops
supporting terrorism. We hope the
efforts of Kuwait, the US and the
international community will make
Qatar realise its errors and mend its
ways.
As Qatar has not accepted the
demands by the Saudi-led bloc, what
steps would be taken next?
As reiterated by our foreign minister,
the political and economic boycott
will continue till Qatar changes for
the better. All measures will be taken
as per international law to eradicate
the scourge of terrorism.
India has remained neutral on this
issue. Has the Indian government
been briefed about the crisis? Has
India offered to mediate, as it has
excellent relations with all parties
concerned?
The Indian government is aware of
the developments. India has made
a strong statement emphasising the
need for all countries to fight ter-
rorism. We appreciate this and the
strong relations between India and
Saudi Arabia.
Is Saudi Arabia hitting at Iran and
Turkey through actions against
Qatar?
Turkey has informed that it is neu-
tral in this issue. The 2017 anti-terror
summit declared Iran a sponsor of
terrorism, and urged it to end sup-
port to terror groups. It also asked
Iran to stop intervening in the inter-
nal affairs of other countries. We are
dealing with Iran-sponsored militias
that are trying to overthrow the re-
gime in Yemen.
Iran is threatening maritime secu-
rity in the region, and supporting ter-
rorist activities in Saudi Arabia. We
want to destroy the Islamic State, al
Qaeda and other terror groups wher-
ever they are based in, and end the
support being given to them. ◆

CHINA
GUEST COLUMN
War over resources
Regional rivalry between India and China destined to deepen
BY MICHAEL KUGELMAN
S
everal years ago, a retired Indian briga-
dier told me that India and China were
bound to go to war. This war would
not be fought over Arunachal Pradesh or
any other disputed land. Instead, it will
take place at sea, and specifically in the Bay of Bengal, over
increasingly precious natural resources. As these resources
become increasingly scarce, competition between India and
China could be more cutthroat as they become the two prime
participants in “the race for what’s left”, as natural resource
expert Michael Klare described it.
Amid all this talk about future sea-based conflict, it is easy
to forget about the land-based territorial disputes festering in
the here and now. The current standoff on a highly strategic
Doklam plateau—territory that Bhutan and India regard as
Bhutanese and that China claims as its own—offers a remind-
er about the clear and present danger of old-fashioned border
disputes. What makes the current crisis so troubling is its
timing. It has arisen at a moment when India-China relations
have plummeted precipitously.
A slew of developments have caused relations to take a
major plunge: China’s refusal to allow India’s entry into the
Nuclear Suppliers Group and its obstruction of efforts at the
United Nations to formally designate Jaish-e-Mohammad
leader Masood Azhar as a terrorist; an April visit by the Dalai
Lama to Arunachal Pradesh, which is claimed by Beijing; for-
ward progress with the China-Pakistan Economic Corridor,
which entails ample development in Gilgit-Baltistan, a part
of Kashmir administered by Pakistan but claimed by India;
and India’s refusal to send a representative to the Belt and
Road Initiative summit in Beijing in May. This last move was
probably particularly galling for China; nearly 60
countries—including several countries
embroiled in territorial disputes
with Beijing—sent senior
officials to the event.
THE WEEK Š JULY 30, 2017 55
Additionally, India won’t want to jeopardise its close relation-
ship with Bhutan, particularly given New Delhi’s struggles to
maintain friendships with its small South Asian neighbours.
China, meanwhile, likely smells an opportunity to orchestrate
this very outcome. Still, with any luck, cooler heads will prevail.
The last thing China or India needs now is the distraction—or,
if it escalates into something greater, the disaster—of a bor-
der skirmish. Beijing is already dealing with the North Korea
threat, while New Delhi is grappling with Pakistan. Besides,
neither side wants to jeopardise their economic partnership.
There is ample potential for conciliation. An opportunity
to make headway in easing the crisis will come on July 26
in Beijing, when Indian national security adviser Ajit Doval
meets his Chinese counterpart at a BRICS summit.
This isn’t to downplay the very real and serious tensions
between India and China, or to suggest that they won’t find
themselves at loggerheads again in the near future. Indeed,
the Sino-Indian regional rivalry is destined to deepen when
increasingly scarce natural resources raise the stakes and
increase the potential for conflict. Arunachal Pradesh, for
example, could become increasingly contested terrain—not
just because of its strategic location and disputed status, but
also because of its relative water abundance in an increas-
ingly water-insecure region.
Coming back to today, the India-China relationship will
need to muster the goodwill to weather the current Himalayan
standoff. The incentives to do so are beyond compelling,
because neither side can afford a war.
The author is deputy director with the Asia Programme, Woodrow
Wilson International Center for Scholars, Washington, DC.
For full text, log on to www.theweek.in
No entry:
A deserted
acclimatisation
centre for
Kailash-
Manasarovar
pilgrims near
Nathu La. China
has suspended
the yatra through
this route
ARVIND JAIN
56 THE WEEK Š JULY 30, 2017
MOSUL

Victory lap: Iraqi soldiers exult after

capturing an IS fighter in Mosul
58 THE WEEK Š JULY 30, 2017
MOSUL

T
he blank stares of the women and children on
the streets of Mosul will haunt me forever.
They pierce right through me, conveying a
barrage of emotions: fear, frustration, trau-
ma, hopelessness....
I was back home in Fabriano, Italy, when the
US-backed coalition forces made the final push to
recapture Mosul from the Islamic State. I was on a
ten-day break to stabilise, return to normalcy. Because
while covering the war, I am always suspended in the
middle of action, unable to fathom what is happening
around me. Suspended in a world of deafening blasts
and mind-numbing wails. It leaves one in a daze.
Moving with the Iraqi army along the frontline, all I
focus is on getting shots that can communicate the lay-
ers of war to the people, and not getting shot at. Thanks
to the Iraqi soldiers, who were like family, I never got
seriously injured.
Bullets. Bombs. Blood. Snipers. Pain. Devastation.
Heat. Starvation. Tears. It has been a surreal, hellish
experience. There were days I wished all these ended
‘today’, ‘now’, especially for the civilians trapped under
IS control.
Even as I was gorging on pizzas, pasta and ice cream
in Fabriano, I recalled sharing rice and beans (occasion-
ally, there would be potatoes) with the Iraqi soldiers. I
used to feel bad for them. They kept fighting with no
proper food and insufficient water.
And, even as I guzzled cold country white wine that
my father bought for me, I was reminded about the pre-
cious sips of water we had in Mosul. There were times
when I had to go without a wash for a week, despite
temperatures over 40 degrees Celsius. I learnt how pre-
cious water was the hard way.
I bathed in the sea and spent time with my girl- was left in the woman’s house were dry crumbs of
friend. But, the blank stares—especially of women car- bread and a few sips of water. There was no electric-
rying babies—kept popping in my mind. I cut short my ity, no ceiling fan.
break and rushed back to Mosul, where Prime Minister Abbas is no more; I will never forget him. I was with
Haider al-Abdadi declared “total victory” over Islamic him when he was killed. A team of 12 soldiers and I
State on July 9. It was my sixth trip to Mosul. were moving into a vacant building. Another team of
Memories of my last trip vroomed into my mind. I Iraqi soldiers mistook us for IS fighters, and a tank
was then embedded with 73 Brigade of the Iraqi army fired at us. Abbas lay dead a few feet away from me.
(two other journalists and I paid a ‘fixer’ $450 to get in). Once, during a patrolling drive, we spotted a strand-
The brigade was led by Major Tareq, who took great ed couple crying for help. Major Tareq was helpless,
care of my safety. as IS snipers would finish us all off if we attempted to
One day, as the troops were sanitising a street, a frail, rescue them. He was particularly worried about my
old woman came out of a house on a wheelchair. The safety. Notably, just a few days later, an Iraqi and two
recce team warned that it was IS territory, and a rescue French journalists were killed in a mine blast.
mission could be fatal. IS snipers were all around us. As the sun set, Tareq ordered a tank to head towards
That was when I came across a soldier named Abbas. that family, which included babies. As he boarded the
On an impulse, he dashed towards the house and car- tank, he ordered me to back off. “Too dangerous,” he
ried the old woman on his shoulders to the safety of shouted. My anxiety ended when he returned with
our post. It was a scene of valour that you see in films. that family, safe inside the tank. It was a moment of
‘Stupid bravery,’ I thought. relief.
Later, as the area was secured, we found that all that There were moments of despair, too. I believe
 THE WEEK Š JULY 30, 2017 59

CHALLENGES
AHEAD
Sanitising pockets of resistance and
neutralising sleeper cells
Rebuilding Mosul, which
would cost billions of dollars
Watching out for lone-wolf attacks
Rehabilitation of about
10 lakh internally-displaced people
Once the common enemy is eliminated,
old conflicts such as the Shia-Sunni power
struggle could lead to flashpoints
Regional militias, which were part of the
coalition army, have to be disbanded
The Arabs vs Kurds conflict must be
resolved. Kurdistan is set to hold a
referendum on independence in September

Homeless, hopeless: The collateral damage in

the war for Mosul has been huge. Reports say
more than 5,000 civilians have been killed

humanitarian aid is grossly insufficient. The UN has to do
more. I will never forget the Iraqi police baton-charging its
own people mobbing for food and water in a refugee camp.
Also, there has been a sense of hurry to end the war. And
the collateral damage has been huge. Imagine the plight of
civilians trapped in the besieged buildings: you try fleeing,
and IS snipers would shoot; you stay inside, and you are
likely to be killed in an air raid.
There was heavy strafing of west Mosul, especially
towards the end of the war. There have been instances of
hundreds of civilians getting killed in bombings targeting,
say, just two snipers. International watchdogs have termed
the war—which witnessed the most intense urban combat
since World War II—as a “civilian catastrophe”. However,
the officers celebrating the ‘victory’ say “extraordinary
measures” were taken to ensure safety of civilians.
Groups such as Amnesty International have accused
Iraqi soldiers of “breaking conventions of war”. They allege
the soldiers have been wantonly killing IS fighters and sus-
pects, instead of taking them prisoners.
I once saw two soldiers with two suspects turning a cor-
ner, and then I heard gunshots. Only the soldiers
returned. One of them nodded to me to probably
convey that they eliminated the suspects.
At all check-posts, only women and children are
being allowed to pass through. The men are taken
to “detention centres” for “interrogation”. But on
the ground there is suspicion that most of them
would not come out alive. The soldiers do not want
to give anyone even the benefit of doubt.
I recall Tareq telling me, “The justice system in
Iraq is very corrupt. With a good lawyer, anybody
can manage to get out of jail.” The soldiers want
to take no chance, so even suspects are shot dead.
Many realities of wars never come out. And now,
there is a kind of an unofficial ban on journalists
moving with troops. The Iraqis, obviously, do not
want the dark truths to be revealed.
For me, only one truth matters. Back in my base
in Istanbul, that truth disturbs me. Yes, the truth
that the blank stares would follow me for a long,
long time. ◆
62
forecast ■ By K.K. Vamanan Nampoothiri
JULY 25-31
Aries
March 22-April 20
Your truthful nature will make
you popular and win you sin-
cere friends. Fame will come
knocking at your doorstep. Pay
no heed to criticism. Parents should spend
more time with their children. Cupid is
benevolent this week. Those fond of read-
ing and lecturing will find ample time for
both.
Lucky day—Saturday: dad brings news
Cancer
June 22-July 23
Some of you will be at your
romantic best this week. A
financial crunch could damp-
en your spirits. Bookworms
will find enough time to indulge. Music and
dance lovers will have a fabulous week. You
will be lucky on the health front. Those into
poultry farming will do extremely well.
Lucky day—Monday: cousin comes calling
Libra
September 24-October 23
In whatever occupation or
enterprise you are in, lady luck
will be smiling on you. Invest
your money judiciously; do
not splurge on luxury goods. Members of
the opposite sex will find you romantic and
charming. And friends will find you trust-
worthy. You will get to meet a prominent
person this week.
Lucky day—Monday: persuasive best
Capricorn
December 23-January 20
You will command respect
from all those around you. A
sudden or unexpected gain
is likely this week. A legacy
will come your way, most likely from your
mother. Get ready to work hard, and that
should pay you rich dividends. Love is in
the air and this is the right time to propose
to your sweetheart.
Lucky day—Friday: you win a prize
Taurus
April 21-May 21
Your family life will be peace-
ful and happy. Change of resi-
dence is likely for some. The
bonus is that you will get good
neighbours. Those contesting elections are
likely to win. Stay focused on work, and
things will fall into place. Insurance agents
and poultry farm owners have a great week
to look forward to.
Lucky day—Tuesday: make new friends
Leo
July 24-August 23
You will receive proper guid-
ance from your seniors. Time is
ripe to take a break from work
and go on a short vacation with
family. You might inherit land. Love is in the air
and you’ll be among the first to sniff it. You are
uncompromising by nature, and if you make
adjustments, chances are that you might lose
some of your best friends this week.
Lucky day—Saturday: new ventures
Scorpio
October 24-November 22
You will be steady in your
affection for your loved ones.
Being a storehouse of energy,
you will make your bosses
proud and colleagues envious. Your upright
nature will widen your sphere of influence.
Lawyers will be successful. Interior design-
ers will be at their creative best and will pro-
duce designs that will impress their clients.
Lucky day—Tuesday: win over enemies
Aquarius
January 21-February 19
Your ambition for power and
prestige will be realised in
style. Politicians will have a
memorable week. You will
emerge victorious over your enemies this
week. The friends you make now will stand
by you through thick and thin. Engineering
and medical students will do well. So will
investigative journalists.
Lucky day—Sunday: Shopping spree
THE WEEK Š JULY 30, 2017
Gemini
May 22-June 21
Hostility will ruin the atmo-
sphere at the workplace. A
rewarding week for doctors
and journalists. Minor ail-
ments like cough and cold could bother you
and make you feel dull and drowsy. A legacy
will come your way. Some of you may go on
a romantic trip with your spouse. Success is
indicated at home and on the social front.
Lucky day—Monday: gift from mother
Virgo
August 24-September 23
Agriculture will be profitable.
At workplace, take up those
additional responsibilities that
might come your way. It is a
great time to study chemistry or medicine.
Prospects in business and horticulture look
bright. Businessmen and film actors will find
their moorings this week. Colleagues will
adore you for your sincerity.
Lucky day—Monday: kids make you proud
Sagittarius
November 23-December 22
You are methodical and indus-
trious, besides being a good
adviser to friends who seek
your counsel. Some of you
will rise to a position of power this week.
A legacy will come your way. Some of you
will be at your romantic best this week. Be
extremely careful while driving. Avoid tak-
ing your family out on long drives.
Lucky day—Sunday: success in exams
Pisces
February 20-March 21
You are fond of change, novelty
and travel. Love at first sight is
in the cards for some. A mem-
orable visit to a holy place is
likely for some. Students looking forward
to go abroad for higher studies should start
preparing now. A long-pending litigation
might finally end in a compromise. Take care
of your health.
Lucky day—Monday: on the dance floor
64 THE WEEK Š JULY 30, 2017

E
leven bridges over the
Sabarmati connect the old city
with the new Ahmedabad.
They connect two different
worlds. While the bustling new city
is the heart of the industrial power-
house that Gujarat is, the walled city,
founded by Ahmad Shah in the 15th
century, is a delight for historians and
architects.
No wonder architect Debashish
Nayak wholeheartedly accepted an
invitation from municipal commis-
sioner Keshav Verma to be the advis-
er to the heritage programme of the
Ahmedabad Municipal Corporation
in 1996. The intention was to use
Nayak’s expertise to preserve and
restore the havelis and pols (clus-
ters of houses) in the walled city. “It
began with a view to make the old city
liveable,” said Nayak. With the help approval came on July 8, when the Nepal are the other heritage cities in
of Archaeological Survey of India, World Heritage Committee inscribed the subcontinent.
Nayak and the corporation breathed the city in the UNESCO world heri- “It was not started with the aim of
new life into the city’s century-old tage list. It is the first city in India to getting the world heritage tag,” said
structures. get the recognition, and now is in the Nayak. It was in 2010, when the city
Their efforts have been appreci- league of cities like Paris and Cairo. celebrated 600 years of its founda-
ated all along, but the final seal of Galle in Sri Lanka and Bhaktpur in tion, that the corporation asked the

PHOTOS: JANAK PATEL
Rich heritage: (Clockwise from
above) Sidi Saiyyed Ni Jaali was
built in the 16th century; Ahmad
Shah built Jama Masjid, the first
mosque in Ahmedabad, in 1424;
a pol in Dariyapur
THE WEEK Š JULY 30, 2017 65
Lasting glory
hmad Shah I of the Gujarat Sultanate had several battles against the
A Rajput neighbours. Naturally, the Sultan built a fort soon after he iden-
tified the location for a new city. Bhadra Fort was built in 1411, the
same year as Ahmedabad was founded. Originally there were a dozen gates
and a hundred towers. Now only a few of them remain.
The Marathas, who ruled from the fort in the 18th century, made a
Bhadra Kali temple inside the fort. The British brought a clock tower from
London a century later.
On the east side of the fort is Teen Darwaza. Ahmad Shah built the gate
in 1415, but it was made famous by his grandson Mahmud Begada, the
mightiest of Gujarat Sultans. Begada quelled a rebellion, which vastly out-
numbered his soldiers, at the egress.
At the centre of the old city is the Jama Masjid. Ahmad Shah built the
elegant mosque in 1424 on the road from Teen Darwaza to Manek Chowk.
Still the heart of Ahmedabad, Manek Chowk is the busiest shopping centre
in the city during the day. At night it becomes a popular eatery. It also has
the mausoleums of many sultans and ranis.
The tallest minarets in Ahmedabad are that of Sidi Bashir Mosque. The
mosque was ruined in a war with the Marathas in the 18th century, but
the minarets, an architectural wonder, still stand. They are called shaking
minarets—a gentle shake of one of them makes the other vibrate.
The last mosque built by the Gujarat Sultans is probably the most
famous of them all. Sidi Saiyyed Ni Jaali was built in the 16th century
and its intricately carved stone window is probably the best known sym-
bol of the city. It is there in the logo of Indian Institute of Management
Ahmedabad as well.
The Mughals conquered Gujarat in the 16th century. Their finest contri-
bution to the city was Shahi Bagh Palace, built by Shah Jahan in the 17th
century.
Pols, or clusters of houses, came up in Ahmedabad in the 18th century,
when the Mughals and the Marathas ruled. “They are about complete
neighbourhood, how people lived and how they continue to live,” said P.K.
Ghosh, chairman of Heritage Conservation Committee. “Though with the
passage of time there have been several changes in their homes.” Pols are
self-sufficient, and have rainwater harvesting systems.
The British gave some 5,000 acres in Kalupur to the Swaminarayan sect
to build its first temple in the early 1800s. The construction was complet-
ed in 1822. wAbout two decades later, Shet Hutheesing, a wealthy trader,
initiated the construction of a Jain temple in the city. It was completed
in 1848 by his wife. The temple, an architectural marvel, is dedicated to
Dharmanatha, the fifteenth Tirthankara.
According to historian Rizwan Kadri, early 19th century Ahmedabad
was an example of Hindu-Muslim unity. “Mahatma Gandhi’s Ahmedabad
that played a major role in laying the foundation stone for the indepen-
dence movement is very rich in heritage,” he said, citing the example of
Manek Chowk, a historically important place from the times of the sultan-
ate. “In early 19th century, traders observed a strike here.”
UNESCO must have taken into account Ahmedabad’s architectural
wealth while deciding on the heritage status. But the history associated
with these structures surely clinched the deal. ◆
66 THE WEEK Š JULY 30, 2017

itage cities. They remain clean and

well-preserved because the people
living there know their worth.
Ahmedabadis will need to change
their mindset and value this heritage
before it becomes a truly memorable
experience for visitors,” said dancer
Mallika Sarabhai. “People who have
been at the forefront of the conser-
vation have done wonders. But it is
no good having a beautiful haveli in
a filthy pol. There is a lot to be done
immediately. And we can do it.”
While the Gujarat government
is all set to celebrate the honour
by organising a Heritage Festival,
Nayak said there was a long way to
go, as the status would be reviewed
in a few months. The Heritage
Conservation Committee plans to
set up a small museum depicting
housing pattern, layout plan of the

Gateway to the past: Teen Darwaza

was built by Ahmad Shah in 1415;
(right) Sarkhej Roza was once a
prominent centre of Sufism

Centre for Environment Planning

and Technology (CEPT) to prepare a
dossier so that the walled city could
try for a heritage tag. A team headed
by CEPT’s Prof R.J. Vasavada started
working on it.
Said Prof Jigna Desai, area chair
PHOTOS: JANAK PATEL
for conservation, CEPT: “A dossier
outlines why a city is worthy of being
world heritage. It outlines why it is
a place important for the history of
the world, what are the elements that
should be conserved for the protec-
tion of that historic value, and how it
plans to do it.”
It took years for a team from succeeded Verma enthusiastically pols, the water collection system
CEPT to survey some 300 pols in the took up the responsibility in the past and the use of public space. Said
walled city. Desai said Vasavada was two decades. The incumbent, Mukesh former IAS officer P.K. Ghosh, who
involved all along in the preparation Kumar, said the corporation had been is the chairman of the committee:
of the dossier. The experts appointed helping and teaching people, through “We can also think of having regu-
by the World Heritage Committee a special purpose vehicle, to restore lar discussions on cultural aspects
inspected the place once, and the rest their homes. so as to redefine cultural traditions,
of the decision mostly depended on People have an important role to organising workshops that can focus
the dossier. play in preserving the city’s heritage. on how these old structures can be
Municipal commissioners who “Tourists throng beautifully kept her- repaired.” ◆
THE WEEK Š JULY 30, 2017
72 THE WEEK Š JULY 30, 2017

PEOPLE

APOLOGY ACCEPTED?
Varun Dhawan apologised for his ‘Nepotism Rocks’
act at the IIFA awards in New Jersey recently. “I
express my apology and regret,” he tweeted. “I am ex-
tremely sorry if I have offended or hurt anyone with
that act.” Along with Karan Johar and Saif Ali Khan,
Dhawan had spoofed Kangana Ranaut’s calling Johar
the “flagbearer of nepotism” on his chat show Koffee
with Karan. The comedy act was heavily criticised
on social media, with people agreeing that it was
REUTERS unfunny and unfair to Ranaut.

GIRL POWER
Actor, author and comedian Lilly Singh has
been made goodwill ambassador of UNI-
CEF. The 28-year-old Canadian of Indian
origin will showcase UNICEF’s work on
her YouTube page and solicit the support
of her millions of fans in advocating chil-
dren’s rights. In 2016, Singh was ranked
third on Forbes’s list of the world’s highest
paid YouTube stars. Her Girl Love initia-
tive aims to encourage support for women
and girls all over the world.
AFP

DELAYED
REACTION
Akshay Kumar is returning to the
small screen as judge of the comedy
show The Great Indian Laughter
Challenge. “We are looking for
comedians who can make people
laugh not only while the joke is be-
ARVIND JAIN

ing told but even a couple of hours

later when you remember it,” said
Kumar.
 THE WEEK Š JULY 30, 2017 73

BIRTHDAY BALLAD
On her 23rd birthday, singer Ananya Birla
announced the release of her second single,
Meant to be, by the end of the month. “Ushering
in the 23rd with a surprise announcement,” she
posted on Instagram. “I generally like to keep it
low key on birthdays, but today I have something
very special to share.” Her debut single, Livin the
life, had got over 2.5 million audio streams.

AFP
SACRED AND
THE PROFANE
Saif Ali Khan plays the role of Sartaj
Singh in the upcoming Netflix origi-
nal series Sacred Games. Based on
the novel by Vikram Chandra,
Sacred Games delves into the intri-
SUBI SAMUEL/SMART LIFE

cate web of organised crime,

corruption, politics and espionage
behind India’s economic renais-
sance. “It’s extremely satisfying to
partner and participate in the first
original series from India to be
showcased on Netflix,” said Khan.

CONTRIBUTORS: ARVIND JAIN AND

DHRITI GANDHI RANJAN
COMPILED BY ANJULY MATHAI
74
last word ● Shashi Tharoor
Pains of singing paeans
T
he old adage of ‘flattery will
get you anywhere’ may just
have been proved to be sci-
entifically true. But how universally
valid is it?
A team of Japanese scientists,
led by their National Institute for
Physiological Sciences professor,
Norihiro Sadato, has found evidence
that people perform better when
they receive a compliment. Being
told flattering things can stimulate
the brain, it seems, in the same way as
being rewarded financially. Appar-
ently, it’s a part of the brain known as
the striatum, which is activated when
a person is complimented. Courtiers
have known for about 3,000 years
that flattery works, but it’s good that
a team of assiduous researchers has
now confirmed it scientifically.
But a recent news item made me
wonder whether both the flatterers
and the Japanese scientists had got it
wrong after all. Passing through the
Arab world recently, I read that Saudi
King Salman bin Abdulaziz ordered
the suspension of a columnist for a
piece that praised him too much.
Saudi Arabia possesses many
virtues, but democracy is not one of
them. The monarch and his family
are the absolute powers in the land,
and flattering them is an essential
survival skill that Saudis imbibe
with their mothers’ milk. Journal-
ists usually take this skill to a fine
art, praising the brilliance of the
Saudi royals in language as resplen-
dent as the qualities they are said to
possess.
But there is, apparently, an invis-
ible line drawn even for flattery, and
Ramadan Al Enenzi, the columnist of
the Saudi daily Al Jazeera (not to be
confused with the Qatari television
channel of the same name, which
is even more detested in Riyadh)
transgressed it. In his anxiety to exalt
the monarch, the columnist ascribed
to King Salman God-like attributes.
This, the Custodian of the Two Holy
Mosques felt, was too much.
In a letter to his Information Minis-
ter, King Salman declared that he was
shocked by the headline used by Al
Jazeera and some of the expressions
in the column. The monarch said the
piece “contained excessive words
and descriptions of praise”, according
to a news agency report, “including
attributes that God used for Himself
or to describe Prophet Abraham.”
Benjamin Disraeli had famously
observed that “everyone likes flat-
tery; and when you come to Royalty,
you should lay it on with a trowel.”
Wrong! When flattery teeters over
into blasphemy, woe betide the flat-
terer. “Such a matter has disturbed
us and we cannot accept or tolerate
it. We do not want it and we do not
BHASKARAN
THE WEEK Š JULY 30, 2017
acknowledge it....” King Salman said
in his letter, calling for the imme-
diate suspension of the offending
journalist and strictures against his
newspaper.
Al Jazeera hastened to issue a full
apology. I am not sure what punish-
ments the newspaper had to endure,
but no doubt it has submitted to
them without a murmur. Hank
Ketcham, the creator of Dennis the
Menace, once wisecracked that
flattery is like chewing gum; enjoy
it, but don’t swallow it. King Salman
went further, and spat it out.
Dale Carnegie, the author of How
to Win Friends and Influence Peo-
ple, drew an important distinction
between praise and flattery. Praise,
he said, was sincere; flattery was not.
Praise is unselfish; flattery is selfish
(because, in the words of 18th cen-
tury novelist Sarah Fielding, while
flattery pretends to give you more
than you deserve, it really seeks to
deprive you of what you have). The
columnist may well have thought he
was earning royal favour through
his unctuous language. Instead, he
incurred royal displeasure.
There’s a lesson in this for us
all. The best advice came from the
17th century French philosopher
Jean de la Bruyère, who recom-
mended silence in respect of the
powerful. “To speak well of them
implies flattery; to speak ill of them
is dangerous when they are alive,
and cowardly when they are dead”.
Next time you are tempted to flat-
ter one of your betters, bite your
tongue instead.
editor@theweek.in
76 The Week RNI.KERENG/36122/82, Registered No. KL/KTM/57/2015-17, Licence No. KL/CR /KTM/ WPP-05/2015-17.
Licensed to post without pre-payment Published on Friday 21st July 2017
2 THE WEEK . JULY 30, 2017

THE WALLET
 THE WEEK . JULY 30, 2017 3

C.O.N.T.E.N.T.S.

COVER STORY.... 8 UNLOCKING DREAM

With the government's financial and policy-related
thrust to provide 'housing for all by 2022', the golden period of
affordable housing is here

STOCKS.... 4 TRAVEL INSURANCE.... 28

Mid-year market analysis, and Choose the right policy to
the likely impact of GST make your education abroad
safe

CREDIT SCORE.... 30
A good credit score would
AMEY MANSABDAR

ensure easy loan approval

and lower interest rate

MUTUAL FUNDS.... 32
RERA.... 18
GST.... 22 Make systematic
It would bring
People need to get a investments in equity-
accountability and
better understanding of oriented mutual funds
transparency to the real
GST rather than going by to realise your financial
estate sector
rumours, feel experts dreams

||
Cover.... Binesh Sreedharan Layout.... Rajesh A.S., Job P.K., Deni Lal, Ajeesh Kumar M., Syam Krishnan

THE WEEK supplement: Published by Jacob Mathew from Kochi for the Malayala Manorama Co. Ltd., and printed by him at the Malayala Manorama Press, Kottayam. Editor: Philip Mathew

THE WALLET
4 THE WEEK . JULY 30, 2017
LONG-DISTANCE RACE
Despite the recent bull run, analysts are wary of
GST's impact on immediate earnings
ndia's equity markets have
I been among the best per-
forming in Asia this year, and
despite the rally over the past
one year, the bulls seem to be
confidently marching ahead.
On July 11, the NSE Nifty 50
index topped the 9,800 mark
for the first time in history. The
BSE Sensex, too, hit a new high
THE WALLET
STOCKS
BY NACHIKET KELKAR
of 31,842.37. This comes after
both, Sensex and Nifty, surged
1.1 per cent on Monday, July 10,
to end at record closing highs.
The reasons behind this rally
are many. The key reasons are
that foreign institutional inves-
tors continue to pour money into
India, and, for the first time in
years, domestic retail investors
REUTERS
have kept up the pace as they
continue to invest heavily in eq-
uity mutual funds.
The Goods and Services Tax
was rolled out on July 1, and so
far there hasn't been any major
disruption in business or eco-
nomic activity, some analysts
point out, which has also lifted
market mood.

Another reason for the rally
has been a circular by the Secu-
rities and Exchange Board of
India on offshore derivative in-
struments (ODI). On July 7, the
market regulator banned foreign
portfolio investors (FPI) from
issuing ODIs or participatory
notes (P-Notes) for derivatives
as underlying.
What the latest guidelines
mean is that FPIs will be able to
trade in derivatives contracts of
a particular stock, only if they
hold the underlying shares of that
company.
This has led to a massive
short-covering rally, sending the
bears for cover.
VALUATION CONCERNS
Since the start of 2017, both,
Sensex and Nifty have jumped
more than 19 per cent. The ral-
ly in mid-caps and small-caps
has been even more phenom-
enal. The BSE mid-cap index has
surged 25 per cent and the BSE
small-cap index 32 per cent.
The markets have had a run-
up even as the broader funda-
mental corporate earnings have
still not recovered. This worries
a few analysts, who expect there
could be a near-term correction.
“There is a concern. Whatever
reasons you may give, the earn-
ings recovery has not been seen.
Both demonetisation and GST
are having a short-term impact,”
R. Sreeshankar, head of institu-
tional equities at broker Prabhu-
das Lilladher, told THE WEEK.
These worries over valuations
are echoed by a few large mutual
fund managers, too.
“There are concerns in the
short term... Valuations are not in
the bubble zone yet, but they are
reasonably elevated and earnings
need to catch up to justify these
valuations,” said Chandresh Ni-
gam, MD and CEO of Axis Mu-
tual Fund.
Buoyed by strong inflows in
equity funds, Axis MF has now
entered the league of the top ten
fund houses in India, with assets
under management of around
063,600 crore.
Nigam is particularly con-
cerned about lack of value in the
mid-cap space. And the concerns
are not surprising.
Over the last month, several
mid-cap and small-cap stocks
have accelerated 50-100 per
cent. For instance, ABC Bearing
has rallied 100 per cent, Jaypee
Infratech 75 per cent, Venky's In-
dia 70 per cent, Shilpi Cable 62
per cent and Karuturi Global 60
per cent.
Analysts say the huge liquidity
in the market is the fuel driving
the rally.
EARNINGS GROWTH KEY
For the quarter ending March
31, 2017, the net profit growth of
Sensex companies was 3 per cent,
while the net profit growth of
Nifty 50 was around 6 per cent.
All eyes will now be on the
first quarter earnings, but ana-
lysts don't see any major pickup
just yet, as GST is expected to
have some impact for one or two
quarters and capital expenditure
and investments remain on the
lower side. For pharma and soft-
ware services firms, global head-
THE WEEK . JULY 30, 2017 5
winds, too, remain a concern.
Kotak Institutional Equi-
ties expects earnings of Sensex
companies to remain flat in the
quarter ended June 30. Across its
broader coverage universe, the
brokerage expects net income to
decline 8 per cent.
“The first earnings season of
FY2018 begins with the by-now
familiar narrative—robust mac-
ro fundamentals not yet trans-
lating into corporate earnings
growth. The narrative of sig-
nificant policy events disrupting
earnings continues in FY2018,”
said broker Motilal Oswal.
There are several reasons for
the expected dip in earnings. In
sectors like automobiles and
consumer durables, companies
rolled out huge discounts and
promotions to liquidate inven-
tories before the GST rollout.
Across the fast moving con-
sumer goods (FMCG) sector,
there was GST-related trade de-
stocking, which hurt companies'
quarterly growth.
Earnings of software ser-
vices companies remain under
pressure because of regulatory
uncertainties in the US. Pricing
pressures in the US market, and
higher research and develop-
ment spends are expected to hurt
pharmaceutical companies, too.
In telecom, companies will
continue to see the impact of the
aggressive price war unleashed
by Reliance Jio, which has forced
Bharti Airtel, Idea Cellular, Vo-
dafone and Reliance Communi-
cations to launch competitively
priced plans.
THE WALLET
6 THE WEEK . JULY 30, 2017

STOCKS

Banks are likely to report

another quarter of muted loan
growth, while provisions for bad
loans will remain high.
Oil companies are expected
to report a quarter-on-quarter
drop in earnings before interest,
taxes, depreciation and amorti-
sation (EBITDA), due to lower
crude oil realisations, weak re-
fining margins and a stronger
rupee against the US dollar.
Lower steel prices and usage
of high-cost coking coal inven-
tories will lead to a sequential
decline in operating margins for
steel companies, say analysts,
while non-ferrous companies
are also likely to report a weak
quarter due to lower prices and
volumes.
The April-June quarter is
usually a weak one for real es-
tate companies. However, in
the months prior to the rollout
of GST and with RERA also
getting implemented, some in-
crease in demand for near-com-
pletion and completed projects
was seen in some markets like demonetisation-led stress. ahead, and in the wake of con-
Maharashtra, although sales in “GST-adoption-led volatility, tinued fund flows, the current
south India are expected to have at a time when the Indian econo- valuations, though high, may
remained weak, say analysts at my remains weak, should throw still not be alarming.
Kotak Institutional Equities. ample surprises in the first and The BSE Sensex is currently
Cement companies, on the second quarter earnings season,” trading at over 19 times its one
other hand, are expected to says Nitin Bhasin, research ana- year forward price-to-earnings
see a further uptick in volumes lyst at Ambit Capital. ratio, compared to the ten-year
(around 5-6 per cent growth MARKET OUTLOOK average of close to 17 times.
seen, versus flat growth last The biggest dilemma currently Investment bank UBS, last
year), as infrastructure growth is on market valuations, which, month, cut its rating on India's
picks up pace. some say, are expensive in the equity market to 'neutral' from
Non-banking finance compa- near-term, compared to their 'overweight' over valuations.
nies, too, may report an uptick long-term averages. However, “On our models, India no
in performance as the operating others say that considering longer looks so attractive,
environment improves from the the earnings recovery that lies though much of this on the the-

THE WALLET
 THE WEEK . JULY 30, 2017 7

versus large-cap stocks, and the expensive,” he said.

FOREIGN INSTITUTIONAL NET
gap continued to widen due to Pankaj Pandey, head of re-
INFLOWS IN EQUITY IN 2017
hopes of accelerating growth and search at ICICI Securities, ex-
(0Crore)
inflows from mutual funds. UBS pects the NSE Nifty 50 to hit
January -1,177 is not the only one striking a cau- 10,400 points by the end of the
February 9,902 tious note. year, meaning an upside of close
March 30,906 Based on a trailing price-to- to 6 per cent from current levels.
April 2,394 equity ratio of 19 times, Ambit Pandey said while some near-
May 7,711 Capital has forecast a Sensex tar- term correction in the markets
June 3,617 get of 31,000 for the year ending couldn't be ruled out, the tra-
July (till 10th) -289 March 2018, implying returns jectory over a longer period re-
Total flows so this year are likely to be flat to mained on the upside. “While
53,064 negative from current levels. there could be some near-term
far this year
“We suggest waiting for uncertainties on GST impact,
Total FII flows
20,568 lower valuations for investing in over a medium to longer term,
in 2016
the market; we continue to hold it would be extremely beneficial
EQUITY AND BALANCED cash and remain underweight on and boost growth,” he said.
MUTUAL FUND FLOWS IN 2017 financials and IT,” said Bhasin. He pointed out that unlike the
(0 Crore) Sanjeev Prasad, co-head of surge in 2008, several sectors this
Kotak Institutional Equities, time around, like infrastructure,
January 7,018
said, “The street's tendency to ig- IT and pharma have not been a
February 10,027 nore continued weak results and part of the current rally.
March 11,262 muted earnings outlook in cer- Most analysts THE WEEK
April 15,978 tain sectors and stocks suggests spoke to say that retail investors
May 17,871 that investors have high expec- should continue to remain long-
June 14,911 tations about a strong recovery term and buying should be more
Total flows in profits of the favoured sectors stock specific, rather than focus-
77,067 and stocks. It would be interest- ing on a particular sector, which
so far this year
ing to see if this blissful state of will help diversify risks. Particu-
PERFORMANCE OF KEY INDI- affairs would continue if global larly, in the mid- and small-cap
CES IN 2017 (AS OF JULY 10) bond yields were to rise on a sus- space, where there may be some
tained basis and earnings were to froth that has built up, investors
BSE Sensex: 19% continue to disappoint." need to be extremely cautious
A few analysts still remain and pick stocks with quality fun-
NSE Nifty 50 19%
positive. Prabhudas Lilladher's damentals and growth prospects,
BSE Mid-Cap 25%
Sreeshankar believes that corpo- they added.
BSE Small-Cap 32% rate earnings growth will recover “It is more important to take
in the second half of the current a longer term call, not just on
matic side is down to the impact financial year, which will contin- markets, but on individual busi-
of demonetisation negatively ue to drive markets higher. nesses," said Nigam. "We still
impacting earnings in calendar “I am hopeful of earnings re- feel confident on a three-to-five
2018,” it wrote. covering in the second half of the year holding period, because
UBS is also concerned with the year. That and given the strong we are invested only in the high
widening valuation gap between liquidity continuing in the mar- quality companies with a high
the mid-cap and small-cap space ket, equity markets will remain predictable growth." ◆

THE WALLET
8 THE WEEK . JULY 30, 2017

COVER STORY

A ROOF OVER
EVERY HEAD
With the government's financial and policy
thrust to achieve the goal of 'Housing for All
by 2022', there has never been a better time
for affordable housing in India
BY ABHINAV SINGH

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 THE WEEK . JULY 30, 2017 9

ijay Kumar, 37, recently invested

V in an affordable housing project in

Yelahanka, on the outskirts of Ben-
galuru. As his annual salary package
was about 010 lakh, he was able to afford
the sub 040 lakh, ready-to-move-in flat.
And, as it was near the new airport road, the
flat was well connected to the city. He had
been unable to buy a house in the city as the
prices refused to come down from the 060
lakh to 070 lakh range. “I was able to not
only get choices in the sub 040 lakh range,
but also to bargain for the price as more and
more builders are offering competitive pric-
ing in the affordable housing segment,” says
Kumar.
In fact, there has never been a better time
for affordable housing in India. The seg-
ment has lost its “downmarket” label and
become a serious and respectable sector for
real estate developers. The demand-supply
gap is still huge, but it is narrowing visibly
for the first time in several decades. Over the
next five years, affordable housing is likely
to grow at an increasingly rapid pace, and
everyone would benefit.
While luxury housing continues to hold
its own in terms of its niche demand, de-
velopers today are more inclined towards
creating affordable housing projects. Such
houses are selling like hot cakes, and the
segment is also the most incentivised seg-
ment for both developers and end users. A
large part of the population is migrating to
Tier-1 and Tier-2 cities, attracted by the new
job opportunities created by the country's
growing economy. And, as a result, the de-
mand for affordable housing has increased
exponentially. Simultaneously, government
policies like the Real Estate Regulation and
Development Act, 2016 have infused fresh
confidence into the real estate sector, bring-
ing fence-sitting buyers into the market.
Jaxay Shah, president of CREDAI,
the apex builders association, says that,

THE WALLET
10 THE WEEK . JULY 30, 2017
COVER STORY
through the Pradhan Mantri Awas Yojana
(PMAY), the government's dream of having
a roof over every Indian's head is close to be-
coming a reality.“The introduction of RERA,
coupled with the lower interest rates for
houses under the affordable housing scheme,
among other reforms and initiatives, will not
only provide a boost to the real estate sector,
but also act as a catalyst for the growth of the
economy,” says Shah.
Experts say affordable housing is becom-
ing an increasingly attractive investment op-
tion. “On the back of the new regulations
to make Indian real estate a more credible
and logic-driven market, property investors
are focusing heavily on affordable housing
segments for the middle and lower income
groups, as this is by far the most attractive
investment option now,” says Ashwinder
Raj Singh, CEO, ANAROCK Property Con-
sultants. “Developers also stand to seriously
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profit. There is an increasing trend of nuclear
families, driven by young professionals, all
over the country, especially the metropolitan
cities where IT and other major corporate sec-
tors hold sway. In cities like Bengaluru, Pune,
Hyderabad, Chennai, Thiruvananthapuram,
Navi Mumbai, Gurugram, Noida and New
Delhi, young professionals are eager to own
homes and settle down with their new fami-
lies. So, affordable housing is a major hit in
such cities.”
Experts, including Singh, say that the good
news for the affordable housing segment lies
in the government's determined policy direc-
tive to provide 'Housing for All by 2022'.
“While this objective seemed a little fabulous
to begin with, we are actually seeing some se-
rious action on the ground as a result of this
policy directive,” says Singh. “The govern-
ment is now collaborating with private build-
ers and developers under a public-private
 THE WEEK . JULY 30, 2017 11

partnership model to make housing for all
by 2022 a reality. Many developers have re-
sponded positively, which is not surprising.
Today, the government has provided 39 per
cent higher allocations for affordable hous-
ing development vis-a-vis FY 2016-17,
under the PMAY. It has also extended the
Credit Linked Subsidy Scheme to loans up
to 01.2 million. And, while the government
has also made a number of other moves
to meet demand with supply and address
the affordability issues for the middle- and
lower-income groups, the most important
stimulus, by far, has been the fact that af-
fordable housing has now been granted in-
frastructure status. This translates into easy
financial credit for builders and makes it a
lucrative segment for them to invest in.”
Some experts say the growth in afford-
able housing will be dictated by the shortage
in India, which is around 18 million. The
maximum shortage of houses is in Uttar
Pradesh, Maharashtra and Andhra Pradesh.
Mumbai leads with more than 350 such
projects; Delhi and Chennai, with around
150 projects, are ahead of other Tier-1 and
Tier-2 cities.
As per Knight Frank India's half-yearly
report on the real estate scenario, 95 per
cent of the shortage in urban housing is in
the affordable segment. The report notes
that, in affordable housing projects, two pa-
rameters play an important role—the pric-
ing of the project and its timely completion.
The report states that even in the affordable
housing segment, there have been instances
when the projects were not completed on
time. RERA, it says, is expected to check
this.
“The growth in the affordable housing
segment is happening all across the coun-
try,” says Shantanu Mazumder, director,
Bengaluru, Knight Frank India. “The main
affordable segment is the sub 050 lakh seg-
ment. In cities such as Pune, the push to-
wards affordable housing will be given by
people employed in the manufacturing sec-
tor and there the demand will be more for
the sub 025 lakh units. In Bengaluru, which
has a whole lot of white-collared technol-
ogy professionals, the push will be towards
the sub 050 lakh range.”
In its report, Knight Frank expects a
structural shift from the supply side and
expects affordable housing projects to
come up within metro cities and in urban
agglomerations like Thane, Gurugram and
Noida. The report says an affordable hous-
ing project is a volume game and the major
challenge for the government would be to
help get suitable land parcels, and that too
at a competitive price, for the project to be

THE INTRODUCTION OF RERA,

COUPLED WITH THE LOWER INTEREST
RATES FOR HOUSES UNDER THE
AFFORDABLE HOUSING SCHEME, WILL
NOT ONLY PROVIDE A BOOST TO THE
SECTOR, BUT ALSO ACT AS A CATALYST
FOR THE GROWTH OF THE ECONOMY.
Jaxay Shah, president, CREDAI

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12 THE WEEK . JULY 30, 2017

COVER STORY

financially viable.
Sanjay Shenoy, joint managing director,
Legacy Global Projects, Bengaluru, says
that as land availability and procurement
is a challenge in urban areas, a boost to
PPP models and expansion to Tier-2 and
Tier-3 cities will provide more options.
“The increasing trend of nuclear families
and a more independent generation,
which prefers to have and decorate
its own space, also contributes to
demand,” says Shenoy. “Construc-
tion technology is also waking up
to the trend, with options of
pre-cast concrete tech-
nology, which is cost-
effective as it aids in
faster completion time,
stronger structures and
minimum labour require-
ment. There is no doubt that
affordable housing will pros-
per in the years to come. Once
the sector settles in with RERA and
GST amendments, the growth that
we will witness with affordable hous-
ing will be at a heightened pace.”
Bengaluru has witnessed a healthy de-
mand trend within the city, and Mumbai,
with its dense population, would be the

THE WALLET

one to benefit the most from this segment.
Chennai—which has to accommodate
people who flock to reap opportunities in
the booming automobile manufacturing
units—will be highly active as well.
In the private sector, real estate major
Tata Housing has taken the lead in the past
by pioneering affordable housing. “It is
very encouraging to see the entire ecosys-
tem, including regulators, developers or
banks, come together to push the ultimate
objective of ‘Housing for All’,” says Brotin
Banerjee, managing director and chief ex-
ecutive officer, Tata Housing Development
Company Limited. “That said, the afford-
able housing sector comes with its own set
of challenges, which vary from funding
and resource availability to monitoring
laid-out mechanisms. This calls for a strong
public-private partnership in research and
development of modern technologies and
stronger execution systems for affordable
housing development. Taking forward its
commitment to affordable housing finance,
both public and private sector banks have
reduced home loan rates to boost the sector.
We believe that this is a strong movement
towards growth and an extremely positive
sign for the real estate industry at large. This
has made it possible for salaried individuals
to realise their dream of owning a home.”
Banerjee says that granting infrastruc-
THE WEEK . JULY 30, 2017 13
ture status to the affordable housing seg-
ment has encouraged the developer com-
munity to aggressively pursue affordable
housing projects. “Peripheries of cities like
Mumbai, NCR, Bengaluru, Chennai and
Kolkata lead the affordable housing space,”
says Banerjee. “Locations such as Boisar
and Vasind in Maharashtra, the Tumkur
region in Bengaluru and Oragadam in
Chennai not only display great potential
as affordable residential hubs, but also al-
low for decongestion. These micro-markets
offer good infrastructure, connectivity, ac-
cessibility to good health care, education
and entertainment facilities, making them
self-sustaining yet affordable housing des-
tinations. Several developers are taking a
keen interest in these markets as they show
significant potential for the growth of the
affordable housing segment.”
Bengaluru-based Puravankara Limited
has signed an MoU with CREDAI to sup-
port the 'Housing for All' initiative. “We
had the distinct advantage of being one of
the first organised players to move into the
affordable space with Provident Housing
Limited, our affordable arm,” says Ash-
ish R. Puravankara, managing director of
Puravankara Limited. “Today, the afford-
able housing segment has emerged as the
silver lining for the entire housing industry,
which has been going through a little rough
phase. The substantial rise in the demand
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14 THE WEEK . JULY 30, 2017
COVER STORY
for quality affordable homes, especially in
the last five years, coupled with recent gov-
ernment initiatives, has given much-needed
impetus to the real estate industry to come
out of stagnation. As per a study, the afford-
able housing segment is predicted to grow
1.5 times in the next 20 years. All the data
points towards the fact that the future of
'Housing for All' can only be addressed by
the affordable housing sector.”
Says Shaishav Dharia, regional CEO of
the Mumbai-based Lodha Group: “We are
seeing tremendous growth and confidence
THE WALLET
in the affordable segment. Under our Casa
brand, we have developments in the price
range of 045 lakh to 070 lakh in Palava. Our
affordable housing developments in Thane
and Palava are seeing disproportionate
growth and consistent demand. Introduc-
tion of multiple drivers like regulation, fiscal
incentives and continued urbanisation have
propelled the best affordability seen in eight
to ten years.”
He says that, with the advent of RERA,
customer confidence has improved signifi-
cantly because of the introduction of pro-

tective measures for buyers. At the same
time, by providing affordable housing
status to homes under 60sqm carpet area,
developers have benefited through tax ben-
efits and lower cost of funding, resulting in
a win-win situation for both. “Looking at
the promising growth that the affordable
housing segment showcases, interest rates
have dropped from 10.5 per cent to 8.3 per
cent in the past 12 to 18 months,” he says.
“Recent reforms announced for the afford-
able housing segment are acting as catalysts
for reinstating growth in the overall real es-
THE WEEK . JULY 30, 2017 15
IT IS VERY ENCOURAGING
TO SEE THE ENTIRE
ECOSYSTEM, INCLUDING
REGULATORS,
DEVELOPERS OR BANKS,
COME TOGETHER TO
PUSH THE ULTIMATE
OBJECTIVE OF ‘HOUSING
FOR ALL’.
Brotin Banerjee, managing director
and ceo, Tata Housing Development
Company Limited
tate sector. The affordable housing segment
is likely to grow to 06 trillion in size from the
current 01.5 trillion in the next four years.”
As per the findings of India Ratings and
Research, a credit rating agency, there would
be a demand for 25 million houses, during
FY17-FY22, in the medium- and lower-
income group categories. A combination of
factors, such as the government's financial
and policy thrust, regulatory support, rising
urbanisation, increasing nuclearisation of
families and increasing affordability, is con-
verting latent demand into a commercially
lucrative business opportunity. The agency
expects the sector to attract more than 0200
billion of equity inflow during FY17-FY22,
which would support growth.
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COVER STORY

WHILE THE CONCEPT

SEEMS TO BE A SIMPLE
SOLUTION TO CURRENT
HOUSING WOES, ITS
EXECUTION REMAINS
COMPLICATED BECAUSE
OF THE UNCLEAR
POLICY FRAMEWORK.
Surendra Hiranandani, chairman
and managing director, House of
Hiranandani

Ravindra Rao, chief executive officer,
Grihashakti-Fullerton India Home Finance
Company Limited, says that interest sub-
sidy on housing loans doesn't just increase
the affordability of the borrower (by effec-
tively reducing the interest rate), but also
reduces the effective loan-to-value ratio for
the financiers.
“There is a sizeable opportunity going
forward as there are a lot of private equity
players, large builder houses and specific
regional players who are expecting to make
forays into this segment,” he says.“The pri-
vate sector and other stakeholders will, in
the long run, play their part in improving
affordability of homes for low-income cus-
tomers and the increase in supply of low-in-
come housing. On the supply side, increase
in income tax rebates against home loan in-
terest, more builders foraying into afford-
able housing segment, innovative construc-
tion technologies, and small formats and
small houses would help. On the demand
side, faster subsidies for the segments who
cannot afford privately built housing and
the scale that the small to mid-size home
finance companies (HFCs) are looking for
will most certainly help. One would see a
greater penetration of HFCs in geographies
with no or limited financial institutions and
improved visibility of housing finance for
low-income customers.”

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Rao says that, over the years, the num-
ber of developers has significantly multi-
plied. “The state governments have also
aided growth by implementing customised
delivery models,” he says. “For instance,
Rajasthan, Gujarat, Odisha, Maharashtra
and Madhya Pradesh have promoted
public-private partnership under PMAY.
The Singapore model of rental housing and
single-window clearance has been imbibed
in the state of Telangana. In Karnataka, the
affordable housing policy covers new con-
struction, group housing and slum upgrade
or redevelopment.”
Though there has been much fanfare
around affordable housing, some reputed
THE WEEK . JULY 30, 2017 17
builders such as Surendra Hiranandani,
chairman and managing director, House of
Hiranandani, have a different viewpoint.
He says that, since 2010, there has been a
lot of pain in the market; developers sold
properties at low prices and then were hit by
severe inflation, resulting in a large number
of projects not being completed. Construc-
tion and approval costs had spiralled out of
control. This was coupled with very high in-
terest rates, as borrowings are essential for
construction projects. Most projects sold
in that period resulted in heavy losses on
the balance sheets of the developers. “Even
though the demand for affordable housing
is humongous, there are multiple concerns
owing to which developers are hesitant
to enter this segment,” he says. “While
the concept seems to be a simple solution
to current housing woes, its execution re-
mains complicated because of the unclear
policy framework. The government should
redefine the same, keeping in view the dif-
ferent geographies in India. While it has
announced tax benefits to encourage more
builders to construct affordable homes, the
turnaround will be difficult without access
to cheaper capital as the margins are very
thin in this space.”
He also says that the lack of availabil-
ity of urban land at reasonable price, rising
costs of construction, high fees and taxes,
regulatory issues and unfavourable de-
velopment norms are a few of the major
constraints restricting the desired growth
and implementation of affordable hous-
ing. “Such pain points should be addressed
as early as possible, because the problems
associated with ever burgeoning popula-
tion and rapid urbanisation will escalate
exponentially in the coming years,” he says.
“The demographics of our country ensure
that the real estate sector needs to grow
to meet the demands of an ever-growing
economy.” ◆
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RERA

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HOME, SWEET HOME
The RERA Act has been introduced to bring accountability,
transparency and a time-bound dispute redressal
mechanism to the real estate sector
oth 2016 and 2017 would
B
be remembered as water-
shed years for the Indian
real estate sector primar-
ily because of the significant
policies rolled out by the Central
and state governments in a bid
to bring about the much needed
method and iron out the deficien-
cies that have been plaguing the
sector, particularly in the residen-
tial space.
The major initiatives during this
period include the introduc-
tion of demonetisation, which
curtailed the rampant use of
“cash” in real estate transac-
tions; according infrastructure
status for affordable housing
space in the last Union Budget;
passing the Benami Transac-
tions (Prohibition) Amended
Act, 2016; introduction of GST;
and the passing of RERA (Real
Estate Regulatory Authority)
Act, 2016.
RERA, a game changer:
The RERA Act has been intro-
duced to bring accountability,
transparency and a time-bound
dispute redressal mechanism
to the real estate sector. The
legislation not only protects
the interests of buyers, but also
BY ANIL SACHIDANAND
empowers them through
several provisions enshrined
in the act that would prevent
misselling, delay in project
completion, over commit-
ment and under-delivery,
fund diversion and other
fraudulent activities prevalent
in the residential real estate
sector.
Buyers, be aware for
your own benefit: While
the provisions of RERA might
sound technical in nature and
one may seek professional
help/advice to understand the
nuances of the act, buyers need
to be aware of some of the key
provisions, which would help
them make an informed deci-
sion before buying a home.
All ongoing projects
included: All projects
(residential and commercial,
with land area more than 500
square metres or more than
eight units), which are ongo-
ing with effect from the date of
commencement of the act and
for which completion certificate
has not been issued, come under
the ambit of RERA.
THE WEEK . JULY 30, 2017 19
IMPLICATIONS
The following projects would
not be covered under RERA:
* Smaller projects with land area
less than 500 square metres and
have less than eight units.
* Projects that have received
completion certificate before the
commencement of the act.
* Projects consisting of reno-
vation/repair/redevelopment,
which does not consist of new
allotment of any apartment/plot.
The information available in
public domain for above-men-
tioned projects may not be as
much as that would be available
under RERA registered ones.
Hence a buyer/existing allottee
should do proper research/dili-
gence either on his own or with
professional help before buying
a unit. The buyers/existing allot-
tees in such projects need to en-
sure that the agreement between
them and the developer is clear,
unambiguous and iron-clad,
which help avoid disputes at a
later date.
Use all information
available: Registration of
the project with the regulatory
authority is compulsory under
RERA and all project-related
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20 THE WEEK . JULY 30, 2017
information should be sub-
mitted to the authority. The
project cannot be adver-
tised/sold before registra-
tion. A project promoted in
phases would be considered
as a standalone one for each
phase requiring separate
RERA registration.
IMPLICATIONS
The project’s layout, develop-
ment plan, related approvals,
name of contractors, structural
engineers, real estate agents,
draft of builder-buyer agree-
ment and other relevant details
should be submitted at the time
of registration and be made
available on the website, which
needs to be updated regularly
by the developer. Buyers should
be mindful of this information,
which is freely available.
Make most of the
developers’ credentials
available online:
The credentials of the builder,
including profile, track record,
and litigations and law suits
are available on the RERA
website.
IMPLICATIONS
The buyer needs to go through
these details carefully, which
will help him know his devel-
oper better. This is particularly
helpful in identifying projects
of reputed builders.
Deal only with RERA-
registered brokers:
RERA mandates all real estate
agents (both individual and
corporate) to register with
the authority and their details
would be available online.
THE WALLET
RERA
IMPLICATIONS
The buyer needs to use this infor-
mation at the outset, which will
help him avoid falling prey to the
lure of fake/unprofessional bro-
kers/entities.
Pay only as per carpet
area and for covered
parking: RERA clearly man-
dates that the developer can sell
the units only as per the carpet
area (defined as net usable floor
area of the unit and excludes lifts,
shafts, exclusive terrace/balcony/
verandah and external walls).
Also, open parking, which is
included in the “common area”
definition, cannot be sold.
IMPLICATIONS
The buyer need not pay any excess
amount to the developer for any
additional area which is not part
of the carpet area, or pay for park-
ing slot which is part of“common
area”.
70 per cent of the mon-
ey collected to be kept
in a separate account:
The act mandates that 70 per
cent of the money collected
from the ongoing project be
deposited in a separate account
by the developer.
IMPLICATIONS
This eliminates fund diversion
and ensures that the money col-
lected from the allottees is used
only for construction activities
of that project.
Don’t pay more than
10 per cent “advance”
payment: The act clearly
states that the developer cannot
accept more than 10 per cent of
the apartment cost before enter-
ing into sale agreement.
IMPLICATIONS
The buyer must be aware of
this limit on receipt of advance
payment and must demand an
agreement of sale with the devel-
oper before he demands further
payment.
Developer is responsi-
ble for structural defects
within five years: The
developer is liable for the qual-
ity of construction and any
structural defect for a period
of five years from the date of
handing over the possession to
the buyer.
IMPLICATIONS
The developer needs to rectify
the defect at his cost or, where
not possible, compensate the
buyer.
Restriction in modifica-
tion to the sanctioned
plan: The developer cannot
modify the sanctioned plan
without the written consent of
at least two-thirds of the allot-
tees.
IMPLICATIONS
This provision eliminates the
possibility of getting altered/
modified unit/building and en-
sures what is committed, is de-
livered.
Stringent provisions for
the “good” of buyers:
The act mandates stringent
provisions in the form of fine
in the range of 5-10 per cent of
the project cost and/or im-

prisonment up to three years
to the developer for violation
of RERA-notified rules in any
form. In case of project delays,
the developer is required to pay
penal interest to the buyer at
SBI’s MCLR (marginal cost of
fund-based lending rate) plus 2
per cent.
IMPLICATIONS
The buyers are well protected by
the RERA provisions in case a de-
veloper flouts the rules as defined
in the Act. The buyers can claim
what is rightfully theirs from
the developer and can even file a
complaint against the developer
in case of any grievance. This
gives more teeth to the buyers
and helps protect their interest
at all times thereby safeguarding
them from any possible incidents
of fraud/duping/getting cheated.
Interests of sellers pro-
tected as well: The devel-
oper (in this case, seller) of the
project, too, can invoke RERA
provisions in case of complaint
against the buyer and can ap-
proach the regulatory author-
ity for redressal of grievances
pertaining to registered RERA
projects. In case of default of
payment by the customer, the
developer is eligible to get the
penalty amount as dues (penal
interest pegged similar at SBI’s
MCLR plus 2 per cent). Contin-
ued default post notice issuance
gives the developer the right to
terminate the allotment of unit
and refund excess amount after
deducting interest.
Short-term pain,
long-term gain
There might be continued slug-
gishness in sales for the next two
or three quarters as builders/
developers come to terms with
RERA guidelines. New launches
might get delayed and ongoing
projects might take some time to
comply with the provisions. Cost
of funds might go up temporarily
for developers and this may im-
THE WEEK . JULY 30, 2017 21
pact small time developers who
have limited access to funding
from banks and financial institu-
tions. For buyers, cost of apart-
ments might increase to an extent
as developers are likely to pass on
a part of their increased expenses
to them.
The sector, however, is likely to
get institutionalised and the non-
serious/unorganised players
will either get out or merge with
larger ones. Funding in the sector
will be formalised, with banks
and financial institutions playing
a greater role as there is greater
transparency and accountability
at the project level and developer
level.
Buyers would be the ultimate
beneficiaries as there is a lot more
transparency and accountability
in the sector, which, albeit, comes
at a slight cost, but is worthwhile
as the largest investment in the
life of an average individual gets
safeguarded by the buyer-friend-
ly guidelines.
The author is MD & CEO, Aspire
Home Finance Corporation Ltd.
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 22 THE WEEK . JULY 30, 2017
AP
GST

UNDERSTANDING GOOD AND S

People need to look at GST holistically rather than believe
BY VANDANA

THE WALLET

hough the goods and ser-
T vices tax (GST) kicked in
on July 1, a lot of people
are not clear on whether
the new tax system makes any
difference. Gurugram-based
Titash Mazumdar is not part
of that crowd. She has done her
research and knows that GST is
good for her. Mazumdar smartly
used GST to her benefit while
planning a family vacation to
Meghalaya. She waited for GST
to come in to effect before mak-
ing her hotel bookings.
Under the new tax regime,
hotel tariffs between 02,500 and
07,500 attract a flat rate of 18 per
cent compared with 21 to 22 per
cent earlier. GST has made ac-
commodation more economical
for frequent travellers. In fact,
there is no tax on hotel tariffs less
than 01,000. Rooms priced be-
tween 01,000 and 02,500 attract
GST of 12 per cent.
And it is not just holidays,
Mazumdar has studied how and
where the new tax system will
have an impact. Experts, too,
believe that this is the right ap-
proach towards GST.
Suresh Sadagopan, founder of
Ladder 7 Financial Advisories,
said: “Lots of people are only
concerned with one or two things
SIMPLE TAX that affect them under the new
tax rule. Many rely on What-
sApp messages to get acquainted
with the rates. But one needs to
rumours, say experts look at it holistically to under-
stand the change it will bring in
the lives of individuals, and in the
economy.”
So far, most experts have
THE WEEK . JULY 30, 2017 23
said that GST will be beneficial
for the economy and will also
be good for individuals in the
long run. “While we can look
at it microscopically, there is a
larger good that this will serve,”
said Bhuvana Shreeram, a certi-
fied financial planner who runs
her own advisory service. “If the
cost of running businesses come
down, companies will become
more profitable. More profitable
companies will look to expand,
thereby creating more jobs.”
According to her, this will lead
to more purchasing power and
hence more spending. “That is
how the growth spiral sets in. It
is expected that with all this, the
gross domestic product will get
boosted by 2 per cent,” she said.
Under GST, there are four tax
slabs—5, 12, 18 and 28 per cent.
The new rates would not lead to
a major change in the budget of
a household. The increase in the
tax for some products is evened
out by lower rates on others. For
example, rice, wheat, milk, veg-
etables, fruits, meat and fish are
zero tax items under GST. But
there are other things that have
become expensive. Items like
Maggi, pasta and cornflakes are
taxed at 18 per cent, compared
with 12.5 per cent earlier. Simi-
larly, tax on cosmetics has gone
up from 12.5 per cent to 28 per
cent.
Electronic goods like air con-
ditioners, washing machines and
television are under the 28 per
cent slab. Tax has also gone up
on ghee, from 5 per cent to 12
per cent, and bottled water, from
THE WALLET
24 THE WEEK . JULY 30, 2017

GST

5 per cent to 18 per cent. Pack-

aged food has become expensive
under GST.
At Mazumdar's house, pack-
aged chicken and fish are con-
sumed quite often and she is ex-
pecting her budget to go up on
those items. But what annoys her
most is the tax on sanitary nap-
kins. They have been put under
12 per cent tax slab.
“I don't understand the point
behind exempting bangles and
sindoor and taxing sanitary
napkins. The former might not
be used by a lot of women but
sanitary napkins are a necessity,
an absolutely essential item in
every home. Making it tax free
would have probably encour-
aged more women to buy it,”
said Mazumdar.
AAYUSH GOEL

Her monthly grocery shop-

ping was already done before
GST but she has not observed a
drastic price increase in purchas-
es after that. The cost of Mazum-
dar's eight-year-old daughter's
school stationery might go up
as ink pens have been put under
18 per cent tax bracket. There is
a 12 per cent tax on colouring
books, pens and pencils.
Pratik Jain, leader of indi-
rect tax practice at Pricewater-
houseCoopers, said that rather
than believing the rumours that
GST has increased prices, one
should understand the hidden
taxes and cess that we were pay-
ing earlier. “As consumers, we
are used to seeing only value
added tax (VAT), generally be-
tween 5 per cent and 15 per cent,
on our bills,” said Jain. “What
TITASH we do not see are the other hid-
MAZUMDAR (IN den taxes such as excise duty
and numerous other compo-
PICTURE, WITH nents, which are embedded in
FAMILY) WAITED the prices of products. So, rather
FOR GST TO COME than blindly succumbing to the
myth that taxes have increased
INTO EFFECT substantially under GST, one
BEFORE MAKING should try to appreciate the
HOTEL BOOKINGS fact that even before GST, the
“visible” VAT along with all the
FOR A FAMILY
“hidden” taxes would add up to
VACATION. or exceed the new “transparent”
HOTEL TARIFFS ARE GST rate.”
CHEAPER UNDER GST subsumes 17 central
and 23 indirect taxes that were
GST earlier applied at various stages.
One of the underlying principles

THE WALLET

of GST has been to reduce layers
of taxation and complexity for
businesses as well as individu-
als. The “one nation, one tax”
regime has come as a boon for
people who were house-hunting.
Abinash Chaturvedi from Jaipur
has been looking to buy a house
for some time and he thinks now
is the right time. He had short-
listed a flat in Jaipur's Vaishali
Nagar, but was waiting for clar-
ity on GST. He has now made up
his mind. There is no indirect tax
levied on purchase of ready-to-
move-in houses, only stamp duty
and registration charges apply.
Properties under construction
have been made less attractive
by taxing them at 12 per cent as
against 5.5 per cent earlier. How-
ever, with input tax credit (at the
time of paying tax on output, you
can reduce the tax you have al-
ready paid on inputs) available to
builders, it is expected that price
of properties under construction
will also go down.
Small cars have been charged
28 per cent but prices are ex-
pected to reduce due to input
tax credit being available to
manufacturers. “Mid-segment
cars are expected to be neutral as
there are similar [tax] rates under
both regimes,” said Archit Gupta,
founder and CEO of ClearTax.
“Sports utility vehicles and lux-
ury cars are expected to get ex-
pensive due to costs associated
with accessories despite the net
tax charged under GST (43 per
cent) being less compared to the
previous net tax of 45 per cent to
46 per cent. Luxury bikes such
as Harley Davidson and Suzuki
Hayabusa might get costlier due
to the 3 per cent cess charged.”
Maruti Suzuki recently slashed
prices by 3 per cent on its select
models to pass GST benefit to
consumers.
For lovers of the yellow metal,
it is bad news. Gold has become
expensive under the new tax
regime. It is taxed at 3 per cent
as compared to approximately
2 per cent earlier. Before GST, 1
per cent excise duty was there
on gold and around 1 per cent
was levied by most of the states
as VAT.
Similarly, 3 per cent will be
THE WEEK . JULY 30, 2017 25
levied on silver and polished dia-
monds. Coupled with making
charges taken by jewellers, the
prices are likely to go up. But if
you are looking to invest in sov-
ereign gold bonds, then you do
not need to pay any tax.
Mumbai-based Anishka
Anil's only reason to be happy
with GST was that her expenses
for dining out have gone down.
She works with a multinational
corporation and stays alone.
On most days, she ends up eat-
ing out with friends. Restaurants
are taxed at 18 per cent now as
compared to 20.1 per cent earlier.
Plus, they can also claim input
tax credit.
All this will translate into a
lower bill for your next dinner.
However, GST for luxury and
high-end restaurants is at 28 per
cent and therefore bills at these
places would increase margin-
ally. “For me, the bill used to be
very confusing earlier with ser-
vice tax, VAT and some cess,”
said Anil. Now it is simple and
clear. The [price] reduction is the
cherry on the cake.”
If you are a movie buff, there
is good news. Before GST, enter-
tainment tax was quite high at
30 per cent to 40 per cent. GST
brings a uniform rate of 28 per
cent. For tickets below 0100,
there is no tax.
However, for regional film
aficionados, the 28 per cent tax
could increase your ticket price.
Regional films currently pay ei-
ther nothing or a subsidised en-
tertainment tax.
Shopping budgets will feel the
THE WALLET
26 THE WEEK . JULY 30, 2017

GST

pinch as apparels above 01,000 due to the increased 18 per cent

are taxed at 12 per cent. For
clothes less than 01,000, the tax
is 5 per cent. The tax rates are
applicable on online purchases
as well.
Experts also believe that
there might not be so many free-
bies and discounts on these sites
now. “Discounts will mean ad-
ditional taxes for these websites.
They will not like to increase
costs. They might also discour-
age returns and cancellations
because they will have to pay the
tax amount on their own while
collecting tax at source in case of
returns and cancellations,” said
Sadagopan.
GST IN PERSONAL FINANCE
GST rate. Likewise, the annual
fee for your credit cards will also
go,” said Balwant Jain, a certi-
fied financial planner. Due to
increased rate under GST, the
cost of making investments will
shoot up marginally. GST will
also be levied on fund manage-
ment charges levied by mutual
funds. The GST charges would
also be levied on any exit load
charged by the fund houses in
case the redemption is made be-
fore the specified period.
People who avail services of
financial planners, wealth ad-
visers or chartered accountants
will have to pay more because of
the new tax rate. The increase of
tax applicable for insurance will
ARVIND JAIN

The increased service tax under vary depending on the particu-

GST has attracted a lot of atten-
tion from financial services in-
dustry. The cost of most financial
services are going to go up by 3
per cent. Service tax under GST
has been fixed at 18 per cent, up
from 15 per cent earlier.
So, whether you are taking a
home loan or a vehicle loan, the
processing charges will go up.
But you need not worry much, as
this is just one-time. If you delay
EMI and the bank charges you
a penalty, there will be a service
tax applicable on it.
Similarly, for credit cards, one
does not need to pay any service
tax during regular course of the
billing cycle. But if you have been
paying late with 15 per cent ser-
vice tax, be prepared to shell out
more.
“All bank charges will go up
lar insurance product. For term
plans, unit-linked insurance
plans, health insurance, personal
insurance, vehicle insurance and
critical insurance the cost will go
up due to increase of tax from 15
per cent to 18 per cent.
However, for other products
like annuity, the GST applicable
would be lower (1.8 per cent
instead of 1.5 per cent). For en-
dowment insurance plans, the
GST for the first year premium
would be increased from 3.75
per cent to 4.5 per cent and for
subsequent years it would be
half of the first year rate.
Luv Jasuja, a self-employed
professional, is disappointed
with the government's move to
increase tax for insurance pre-
mium. With eight or nine differ-
ent kinds of insurance policies
in his family, he feels this will be
a major burden on his wallet.
“On one hand the government
is pushing for a health cover for
everybody, on the other they are
increasing the rates,” said Jasuja.
“This is not going to help and
will dissuade people from buy-
ing insurance.”
However, Shalini Dhawan,
co-founder and director of Plan
Ahead Wealth Advisors, said that
hike in tax for premiums should
not impact your decision of buy-
ing insurance.“It is true that GST
will make buying insurance more
expensive, but it is very impor-
tant for an individual to secure
his life, especially when the indi-

THE WALLET

vidual is the sole bread-earner of
the family,” said Dhawan.
If you buy shares directly,
then, too, because of service tax
you will have to pay more. For
example, brokerage which was
charged at 0100 for a share trans-
action had a service tax of 15 per
cent, this would go up to 18 per
cent under the new norm. This
will mean a net payout of 0118
instead of 0115.
Input tax credit is one of the
most important features of GST.
Say, there is a manufacturer and
tax payable on output, that is his
final product is 0450. Tax paid
on input, that is raw material, is
0300. He can claim input credit
of 0300 and needs to pay only
0150 as tax.
It is believed that the mecha-
nism of input tax credit will ul-
timately reduce the final price
to the wholesaler, retailer and
consumer, and cause a paradigm
shift from individuals paying
more taxes to more individuals
paying taxes.
The other interesting aspect
about GST is its anti-profiteering
provision. Since the GST, along
with input tax credit, is eventual-
ly expected to bring down prices,
a National Anti-profiteering Au-
thority (NAA) is to be set up to
ensure that the benefits are trans-
ferred to the consumers. Also, en-
THE WEEK . JULY 30, 2017 27
tities that hike rates inordinately,
citing GST as the reason, will be
checked by this body.
Once the company or entity,
which has profiteered illegally, is
identified, it can be asked to re-
duce prices and to return to the
customer the sum equivalent to
the price reduction along with
18 per cent interest from the date
the higher sum was collected. The
authority would be able impose
penalty on the company or can-
cel its registration.
As a customer, if you under-
stand that tax on a particular
product has reduced but your
shop is not passing it on, you can
approach the anti-profiteering
authority.
“While it does seem that GST
is likely to be deflationary, we do
believe that interest rates are un-
likely to go up in a hurry. Most of
us are used to thinking in abso-
lute terms, and are therefore not
happy with interest rates at 6 per
cent to 7 per cent, considering in-
flation is currently very low and
likely to remain in the range of 2
per cent to 4 per cent for a period
of time, fixed income investors
could actually be in a good place,
with real returns at a very attrac-
tive level,” said Dhawan.
“'Thus, investors may do well
to maintain their fixed income
exposure at this point, or in fact
increase the the same for short-
term and medium-term financial
goals. If they have a seven to 10
year view, they may consider en-
hancing equity exposure but only
gradually,” she said.
■■■
THE WALLET
28 THE WEEK . JULY 30, 2017
TRAVEL INSURANCE
LEARNING
COVER
Choose the right insurance policy to
make your education abroad safe
BY K.G. KRISHNAMOORTHY RAO
he admissions to foreign
T universities are in full
swing and students from
India will soon fly to their
dream destinations to achieve
their career goals. Every year,
50,000 to 55,000 students trav-
el from India to countries like
the United States, the United
Kingdom and Australia. In the
recent years, we have also seen
Germany and Ukraine becom-
ing favourite destinations for
specific subjects such as science
and medicine. These 55,000 stu-
dents not only comprise pupils
who travel for higher education
but also professionals above 40
years who travel for short-term
professional courses arranged
by various universities.
Be it students or profession-
als, admission to a foreign uni-
versity is not only enthralling
but also nerve-wracking. While
it provides a great future pros-
pect, getting your degree from
a foreign country comes with
its own share of uncertainties
and hesitations. Student travel
THE WALLET
insurance provides a host of
benefits including medical and
non-medical insurance coverage
for the tenure of your academic
course with auto-renewal and
extension facilities. The cover-
age is exhaustive and provides
for expenses incurred on medi-
cal treatment, passport loss and
study interruptions.
Insurance companies gener-
ally provide student travel insur-
ance to those who are between
16 to 35 years of age. Here is a
snapshot of various covers that
students can avail:
MEDICAL EXPENSES
The insurance plans take care
of your medical expenses that
may arise owing to accident
and sickness while travelling.
This medical assistance includes
emergency dental treatment,
maternity benefits and also takes
care of transfer to the nearest lo-
cation (or country) where the
treatment you need is available.
According to our database, stu-
dents have filed claims for medi-
cal outpatient department the
most, which goes to show that
this is one of the most important
feature of the policy.
LOSS OF PASSPORT
This cover keeps your fear of los-
ing your documents in a foreign
land at bay. It ensures that the
reasonable expenses that may be
incurred in procuring a duplicate
or temporary passport overseas
is covered.
BAGGAGE DELAY OR LOSS
In case of baggage loss, your
insurer is liable to pay up to the
specified maximum limit. The
policy can also provide financial
protection on unplanned per-
sonal purchases caused by delay
in arrival of the checked-in bag-
gage in a foreign country.

SPONSOR PROTECTION
In case of accidental death or
permanent disablement of your
sponsor, your tuition fee for the
remaining period of your course,
up to the specified maximum
limit, will be reimbursed by the
insurer.
TUITION FEE
The student travel policies are so
comprehensive that they ensure
the reimbursement of unutilised
tuition fees if you are hospital-
ised for two consecutive months
or more for injuries or ailments
that are covered under the policy.
This also includes cases of ter-
minal illness or transportation
to the nearest location in case of
medical emergency or in case of
accidental death of your immedi-
ate family member.
PERSONAL ACCIDENT
Most of the time, insurers pro-
vide coverage against acciden-
tal death and permanent total
disablement, irrespective of
the country in which you are
studying.
While many diverse aspects
are covered under a student
travel insurance policy, it is im-
portant to fully understand the
exclusions in such policies. It
does not shield you in cases that
are related to the influence of
alcoholism, abuse of drugs and
AIDS.
Unexpected situations that
pose a hurdle in your study
plans can make you spend your
savings in a jiffy. Educational
institutions abroad now usually
provide such policies partly or
ensure that you purchase one
THE WEEK . JULY 30, 2017 29
as part of their admission or
academic course mandate.
There is minimum paper-
work involved in this form of
insurance. Today, insurance
companies provide all the de-
tails of their products on their
websites. Many companies of-
fer customised policies as well
to cater to your preferences and
requirements.
It is important to analyse and
compare policies offered by dif-
ferent insurance companies to
select the right plan. It is recom-
mended to buy a policy from
a reputable insurer that has a
respectable record of servicing
and claim settlement. You must
also remember that an economi-
cal policy may not always be the
paramount policy for you. You
should always read the policy
document carefully to under-
stand the terms of the policy
before making the final decision.
With increasing disposable
income and the scaling ambi-
tions of the Indian youth, we
have certainly seen an upsurge
in the awareness and acceptance
of student travel insurance.
You know all your efforts and
hard work over the years have
been worth it when you receive
that admission letter from your
chosen international university.
And with that right insurance
policy, you can keep all your
worries at bay and make your
travel and stay secured.
Rao is managing director
and chief executive officer of
Future Generali India Insurance
Company Limited.
THE WALLET
30 THE WEEK . JULY 30, 2017
OPPORTUNITIES GALORE
A good credit history will vouch for you in many ways
or most people, a credit
F score may look like a sim-
ple three-digit numerical
expression of an individu-
al’s creditworthiness, assessed by
a credit bureau at a point in time.
But for a potential lender, it gives
a deeper insight into someone’s
ability and willingness to pay off
debt, and more importantly, the
aptitude to handle money itself.
Thus, banks and institutions
prefer a customer who has bet-
ter hold on his or her personal
finances as well as a healthier
track record of fulfilling finan-
THE WALLET
CREDIT SCORE
BY MOHAN JAYARAMAN
cial obligations, especially credit
servicing, on time.
A good credit history will vouch
for you in many ways when it
comes to getting a credit card, a
car loan, home mortgage and so
on. Your credit score is derived
from detailed analysis of your
credit history, which includes
major financial step you have
taken, your overall behaviour in
handling money and other valu-
able assets that you have created,
besides your general attitude
towards financial obligations,
including your utility payments.  maintained by an agency; your
In short, a detailed history of
your loan and credit card pay-
ments, defaults and other key
financial decisions make up your
credit history, using which a cred-
it score is derived at. So, whatever
you have done in the past or are
doing in the present will all weigh
in on your credit score.
Importance of a good credit
score:
When you seek a loan or credit,
your credit risk is evaluated,
by screening your credit score

credit report largely guides lend-
ers to decide whether to approve
your credit request or not. Thus,
it would be prudent to check your
credit report regularly and take
corrective steps against misre-
porting, theft of identity and even
accounts that you don’t recognise.
Today with consumer consent,
landlords, telecom or power
utilities and even the employer
can turn to credit score to get a
ringside view of you from a per-
spective of accountability and
commitment. You stand to lose a
world of opportunities if an em-
ployer or a landlord takes your
credit score in its entirety.
Though there are many organisa-
tions providing different set of
credit scores, they are all calcu-
lated using similar set of inputs.
In general, the desirable average
credit score is about 750—below
which it is considered adverse.
Lenders or other users may find
an applicant with a credit score
of below 750 as unworthy, hence
may reject such requests.
Benefits of a good credit
score:
Maintaining a good credit score
gives a whole lot of opportunities.
For example, banks uses the score
to understand your primary eligi-
bility to avail a loan, considering
your ability to repay. If you have
a good credit score, it gives the
lender a world of confidence. The
same method is applicable for
credit cards, too. However, such
a favourable prospect makes a
difference when you seek a larger
loan like a home loan or a vehicle
loan. As your monthly liabilities
will be considerably less, your
prospects of paying off in time
will be better.
Besides a faster approval of
credit, a good credit score will
make you eligible for a lower rate
of interest—one which will be
markedly lower than the gener-
ally applicable rate. It may save
you a considerable sum over the
loan period since a small percent-
age reduction in interest rate can
make a big difference to the total
payout. Another benefit will be a
higher limit on a loan or a higher
loan. Many lenders readily agree
or follow up with borrowers for
top-up loans if they have a good
credit score. Often, they consider
those with higher credit score for
new products and services such
as cards with lower rates or even
privileged investment services.
How to maintain a good
credit score:
There are different ways you
can maintain and improve your
credit score. Given the aspira-
tional aspects of today’s world, it
would be hard to live debt-free or
away from some means of credit.
If an individual has such a lack
of credit history, it would lead to
denial of credit since lenders may
not have enough details—a pay-
ment history at least—to judge
an application. Thus, keeping off
credit totally would be equally un-
wise or as good as having a poor
credit score.
A good credit history gets built
when one makes regular repay-
ment on loans and credit cards on
time. Such a behaviour substan-
tially influences your credit score. 
THE WEEK . JULY 30, 2017 31
Remember to make full payments
on such regular commitments so
that your credit balance (especial-
ly on a credit card) remains within
your limits. Similarly, never ig-
nore unpaid or overdue bills of
any sort. A common mistake is to
close old credit cards (in a credit
agency’s records) including its re-
payment history which may take
away a supportive case.
If you are planning to take a larger
loan like home mortgage, then
you must utilise existing credit
means judiciously (for example,
you may use only 30 per cent of
the credit card limit, besides keep-
ing multiple cards to have a higher
limit). Always consider paying
off the credit card bills in full as a
consistent payment of minimum
amounts due can be considered
undesirable by lenders. One must
also desist from applying for too
many loans at any point in time
or with too many lenders for
the same loan. Ideally, one must
maintain an ideal mix of secured
and unsecured loans. Wherever
possible, you may consider pay-
ing off expensive credit with sav-
ings to reduce the burden.
It is often said that a smart con-
sumer is someone who uses the
available credit intelligently, in-
cluding when not to take or use
it. One may also add that this
smart consumer will become an
intelligent one when he or she un-
derstands how a lender favours a
better credit score, which in turn
brings beneficial terms and a
greater quality of life.
The writer is managing
director, Experian Credit
Bureau, India.
THE WALLET
32 THE WEEK . JULY 30, 2017

MUTUAL FUND

e all have our

BEST LAID W dreams. An actor

dreams of winning
an Oscar. A singer
dreams of a Grammy. Someone

PLANS
Investing systematically in equity-
oriented mutual funds can help you
realise your financial dreams
BY SHYAMALI BASU
wants to buy a house. Someone
else wants to live comfortably
after retirement. Another person
wants to send her child abroad
for higher studies. Millennials
dream of buying phones or go-
ing on exotic holidays. Almost all
people dream of their wellbeing.
But, just having dreams is like
trying to hit the target blindfold-
ed. We need to work to turn our
dreams into reality. All achievers

THE WALLET

in various fields have laboured to
realise their dreams.
We can get one step closer to
our dreams by maintaining fi-
nancial discipline. Quantifying
our dreams in numbers and tar-
gets translates them into financial
goals. When we embark on our
journey to achieve them, the first
thing we need to know is the cost
at the time of fulfilment of those
goals. Say, 05,00,000 for making
the downpayment on a house af-
ter five years, or 05 crore as retire-
ment corpus after 10 years.
Once we have set our finan-
cial goals, and the time limit to
achieve them, we need to choose
the investment products that
will help in achieving the tar-
gets. While selecting a product,
the most important aspect we
should consider is the return,
post inflation and tax. Inflation
reduces the purchasing power of
the capital and taxes reduce the
overall return of the products.
These two eroding factors make
compounding of money very
challenging.
Equity-oriented mutual funds
are the best financial asset class
for aiding compounding of mon-
ey in the long run. Ideally, for
goals that are some years away,
one needs to invest in equity-
oriented mutual funds to get a
diversified portfolio, which helps
reduce risk as well.
Here are some goal-oriented
schemes that bring in discipline
in investment patterns.
RETIREMENT SCHEMES
Planning for one’s sunset years
is the most common goal one
would have. The aim would be to
retire with a corpus and generate
adequate income from it, which
would ideally be equal to your
pre-retirement income and helps
one maintain their standard of
living. If one needs to plan for
retirement, starting early is very
important.
SCHEMES FOR CHILDREN
We do the best we can for our
children. We like them to have a
future that is better and brighter
than the present. But expenses on
education and marriage are not
only dependent on inflation, but
changing aspirations as well. If it
costs 010 lakh to provide good
quality education to one’s child
today, the same will cost 032
lakh after 15 years, assuming an
inflation of 8 per cent per annum.
And, if the child wants to attend
a college abroad, the fee require-
ments would be vastly higher
than anticipated.
Mutual funds provide various
options to investors, depending
on their age and goals that range
from conservative (predominant
investment in debt) to aggressive
(predominant investment in eq-
uities). Investors in their twenties
or thirties, or those who have
longterm goals like children’s
education, may consider invest-
ing in aggressive options, as the
longterm investment horizon
augurs well for equity invest-
ment. Similarly, investors who
have short-term goals or are in
their pre-retirement phase may
consider investing in conserva-
THE WEEK . JULY 30, 2017 33
tive options, as it helps decrease
the risk.
WEALTH CREATION
If the goal is to buy a car or to
make the downpayment on a
house, equity-oriented mutual
funds can be an ideal option, as
they tend to outperform other as-
set classes in the long term.
A conservative investor can
invest in large-cap funds that
invest in well-known, reputable
companies with strong funda-
mentals. Those not looking to in-
vest a lump-sum amount can opt
for systematic investment plans,
as they help in rupee cost aver-
aging and help beat volatility.
Investments in equity-oriented
mutual funds are tax efficient, as
dividends received and longterm
capital gains are exempt from
tax.
REGULAR INCOME
Investors looking for regular in-
come to meet specific needs like
post-retirement expenses can opt
for systematic withdrawal plans,
through which they can receive
cash flows as per their need in a
tax-efficient manner.
Mutual funds as an invest-
ment product cater to all kinds
of investors—conservative and
aggressive, short-term and long-
term; salaried and high net worth
individuals, and so on. They are
also tax efficient and tend to pro-
vide higher real returns.
Basu is senior vice president
and head, products and market-
ing, HDFC Asset Management
Co Ltd.
THE WALLET
34 THE WEEK . JULY 30, 2017
■ Do health insurance
companies provide free
health check-up once you
purchase insurance from
them?
No, it is not necessary to
offer free health check-up for
every health insurance policy
purchased from any insurance
company. A plethora of health
insurance products available in
the market offer a wide range of
coverages, waiting periods, price,
optional benefits and value-
added services. Some insurers do
offer free health coupons at the
time of renewal, provided the
previous tenure has been claim-
free. Universal Sompo General
Insurance provides health check-
up coupons as a renewal benefit.
■ In cashless hospitalisation,
does one need to pay deposit
money to the hospital for
admission?
There is no need to pay
any deposit money for
covered expenses. In case
of Universal Sompo, for
planned hospitalisation you
need to intimate the company
at least 72 hours prior to
hospitalisation, and for
emergency hospitalisation at
least 24 hours before at the toll
free numbers or on the website.
Immediately after reaching
the hospital, you need to fill
the cashless pre-authorisation
form and attach a copy of
your photo identity card and
health insurance card, and pre-
admission prescription and other
medical reports. The cashless
counter personnel will fax the
THE WALLET
ASK
EXPERT documents to us. You will be sent
a claim reference number along
with the intimation of approval
or rejection within 6 hours of
complete documentation. The
company will also intimate you
the uncovered (non-medical
expenses), if any, as per the health
insurance policy.
■ I have replaced the original
set of tyres on my vehicle
with new sports tyres. Do
I need to inform my motor
insurance company about it?
Indeed, you need to inform
the insurance company since
changing the tyres would
increase the insured declared
value of your vehicle. The
insurer may charge a minimal
RAJIV KUMAR
extra premium from the date
MD & CEO, Universal of change. Any damage to tyres
Sompo General Insurance and tubes is not covered under
a private car package policy if
the vehicle has not suffered any
damage. Any claim payment for
tyres or tubes is subject to 50 per
cent depreciation of the cost of
the replacement.
■ In a comprehensive two-
wheeler insurance, does the
rider get a personal accident
cover, too?
Under a comprehensive (own
damage + third party) two-
wheeler insurance policy, only
the owner of the two-wheeler
is covered under the personal
accident cover. Personal accident
ALL QUERIES MUST ONLY cover to unnamed passengers
BE POSTED ONLINE AT and paid driver or cleaner is
WWW.THEWEEK.IN/
ASKEXPERT. ANSWERS granted as per India Motor
CAN ALSO BE VIEWED Tariff 2016 on payment of an
ONLINE AND WILL BE
UPDATED ONLINE. additional premium.
■■■
THE WEEK . JULY 30, 2017 35

THE WALLET
36 The Week RNI.KERENG/36122/82, Registered No. KL/KTM/57/2015-17, Licence No. KL/CR /KTM/ WPP-05/2015-17.
Licensed to post without pre-payment Published on Friday 21st July 2017