Tamil Nadu Politics: Sashikala, Paneerselvam and the Ghost of things past

A look at the world of politics, statecraft, diplomacy and books

The death of Jayalalithaa has created a real storm in Tamil politics. The AIADMK with 134 MLAs in the house is poised to split between the two warring factions:Sasikala and O Paneerselvam. The fact is that the Party and its higher leadership has lost all credibility will make the task of polituical recoverry extremely difficult. Added to the political turmoil unleashed by the death of Jayalalithaa is the mass protest on the issue of jallikkattu. The crowds of young people who protested on the beach of Marina were not displaying their love for the sport of bull taming. They were expressing their anguish at the sudden and disastrous turn in the politics of Tamil Nadu. In fact the restoration of the sport following the promulgation of an Ordinance by the Chief Minister, O Pannerslvam hardly caused a ripple in Chennai, the ground zero of the protests.

O Paneersevam, the acting Chief Minister, was the choice of Jayalalithaa whenever she had to vacte the position due to frequent conviction in corruption cases. In fact, in all the cases in which the late CM was procecuted, the real beneficiary was Sashikala Natrajan and her extended family which goes under the sobriquet, Managudi Mafia. The strangle hold acquired by Sashkala over the party can be gauged from the fact that 129 MLAs have come out in open suppport of her. While O Pannerselvam has the support of a small handful of MLAs, there is no doubt that the rank and file, the cadres of the AIADMK are solidly behind him. The corruption cases against Sashikala are not the only rerasons for her unpopularity in the AIADMK. The real reason is that Jayalalithaa herself had expelled Sashikala from the Party for anti party activities and threw her out of the Poes Garden Residence in 2011 and was admitted back in favor only after giving an abject letter of apology in which Sashikala shook off all ties with her family. Indeed one of the factors that contributed to the defeat of the AIADMK in the 1996 election was the excesses committed during the wedding of Dinakaran, the nephew of Sasikala. The vulgar display of ill gotten wealth was so revolting that AIADMK paid a political price for that mistake. It is rather surprising that even with this legacy, Sashikala was able to seize control over the Party and have herself declared the General Secretary of the AIADMK. In fact her agrteement with Paneerselvam was that he would not be disturbed in his position as Chiel Minister.

The successful manner in which Paneerselvam handles the Jallikkattu crisis and earlier in overseeing the relief work following the Vardha Cyscle that hit Chennai in December 2016 alarmed the Sasikala faction. It became clear as daylight that if he is allowed a free hand, he would get the mandate of the people. From that point onwards effort was made to destabalize Paneerselvam. A section of the senior leaders began asking for the installation of their "Chinamma" as the Chief Minister. And an unlikely rebel was born.

Paneerselvan made a dramtic appearance before the grave of Jayalalithaa on the Marina Beach and "meditated" near her grave for 40 minutes and  announced to the waiting crowd that he had always been the choice of Jayalalithaa to fill her post whenever vacancy arose. It is now clear thta sensing popular anger at the manner in which Sasikala had usurped the post of General Secretary of the AIADMK and her shamless occupation of the poes Garden residence of Jayalalithaa, Paneerselvan raised the banner of revolt. The Governor Vidyasagar Rao did not exactly cover himself in glory by completely neglecting his constitutional duties during the 72 says Jayalalithaa was kept in Apppollo Hospital. Now questions are being asked about the manner of Jayalalithaa's death and the possible involvement of Sasikala in it. Appollo has not come out clean and still there are questions. The rumours that the late Chief Minister was pushed down the stairs in her residence and was brought dead to the hospital on September 22 are making rounds, O Paneerselvam raised this issue in his press conference and speculated about constituting a Judicial Inquiry. It is now quite obvious that Jayalalithaas death has become a controversy due to the mutual recriminations between the rival factions.

As Paneerselavam hardened his stand and Vidyasagar Rao the Governor not showing any haste is settiling the issues stemming from the resignation of O Paneerselvam, Sasikala took all her MLAs hered them in three luxury buses and sequestered them in an exclisive resort on the East Coast Road near Mahabalipuram.

I venture to speculate that the corruption cases against Sashikala will come back to haunt her. Her faction thought that having the position of Chief Minister will protect her. This is very unlikely. Paneerslevam though much weakened as he rebelled only after his own position had become untenable may continue for some time more. Tamil Nadu is heading for a mid term poll.

Modi's Financial Gamble: Did Demonetization Succeed or was it a Failure

A look at the world of politics, statecraft, diplomacy and books

On November 8th 2016, Prime Minister Narendra Modi  announced a slew of measures which amounted to a drastic overhaul of the existing financial structure: The demonetization of the 500 and 1000 rupee notes. The legal basis for this policy is certainly questionable as macro economic policy comes squarely under the jurisdiction of the Reserve Bank of India and the RBI may have been consulted. However, the suddenness of the policy and effective manner in which it was implemented took everyone by surprise. What were the objectives of this measure:

First and foremost the unaccounted wealth, called Black Money in India, was becoming alarming huge. Some estimate that the parallel unaccounted economy was almost as large as the legitimate economy and was getting interfaced with high crime, political crime. Since unaccounted wealth was increasing and the tax paying population of India was extremely small, the Central Government had to find new sources of revenue. The upcoming Seventh Pay Commission would impose a huge financial burden on the economy and the One Rank One Pension introduced by the Modi Government would need a huge outlay. With tax revenue constant and expenditure increasing, the Government had necessarily to widen the tax net. The Finance Ministry under Arun Jaitley had imposed a number of measure, including amnesty for tax dodgers, but very little black money was disgorged. With one fell swoop the parallel economy was laid waste and this is a huge gain for India.

Second, the infrastructure projects needed investments and the flow of investment into India by way of foreign investment is not all that encouraging. A number of important projects like the High Speed Railway projects, the Sagar mala por project, the National Highway Scheme need funds and one way of freeing funds for infrastructural investment is to tap into the huge hordes of illegal wealth trapped within the country. It has been estimated that more than 250 lakh crores has now been freed and has flowed into the banking system. The Government wisely allowed hoarders of black money to deposit their illegal wealth in the banks and many did so thinking that once the banks have received the cash, black money is converted to white. Such financial alchemy was not on Modi's mind. The accounts in which monies have been deposited will now be investigated andit is hoped that with the GST rolling out from April this year, the tax base of the Government will also increase as the Government of India has to compensate the loss incurred by the states for a period of 5 years. Therefore, the objective of identifying potential tax payers has also been met.

There has been some criticism, especially the corrupt and criminal dynastic fascist party, the Congress about the demonetization policy. There was a major disruption in the financial sector in the wake of Modi's demonetization. The cash crunch caused a paralysis in the economy. Banks were restricted to a maximum payment of 2,000 rupees per individual. ATMs ran out of cash and many, nearly 59% of the cash machines have not been calibrated  to handle the new 500 and 2000 notes. Even till today cash withdrawal is restricted to 24,000 per account per week. This restriction was sold as an incentive to migrate to a digital economy with e payments and non material payments through credit/debit cards ect. However, the migration to a cashless economy is proving very difficult as internet access and literacy is limited.

The long queues at the banks did lead to needless suffering and at least 140 persons died while standing in bank queues. The opposition raised a hue and cry over this as though the corrupt dynastic fascists have ever been interested in the welfare of people. However, the situation ahs eased and now the queues in the banks is almost nonexistent.

Will this policy yield the desired political benefits. Though there was considerable difficulties, the ordinary India who is tired of the corruption and the venality have applauded the policy of Modi. It is no exaggeration to say that demonetization, though of limited economic success is a resounding political victory