25 April 2025 Current Affairs

Supreme Court's Warning to Senthil Balaji in the ‘Cash-for-Jobs’ Money Laundering Case

Tamil Nadu Minister Senthil Balaji is under scrutiny in a money laundering case linked to a 'cash-for-jobs' scam during his tenure as Transport Minister. The Supreme Court granted him bail in September 2024 due to long incarceration and delay in trial proceedings, despite noting a prima facie case. However, Balaji was reappointed as a Minister soon after, triggering the Court’s concern over possible misuse of bail and influence over witnesses.

Key Highlights:

• Supreme Court's Ultimatum: The Court gave Balaji a choice - resign from the Ministerial post or face cancellation of bail.
• Bench Composition: Justices Abhay S Oka and AG Masih are hearing the matter, including applications to recall the bail order.
• Grounds for Bail: Bail was granted due to Article 21 concerns (right to speedy trial) and not on the merits of the case.
• Misrepresentation to Court: Balaji’s bail was granted based on submissions that he had resigned as Minister, but he was sworn in again within 48 hours of release.
• Influence on Witnesses: The ED and a witness alleged that Balaji, while holding office, had been intimidating witnesses and delaying the trial.
• Bench's Concern Over Precedent: The Court emphasized that liberal bail jurisprudence in PMLA cases could be misused by politicians, setting a worrying precedent.
• Statement from Justice Oka: He expressed regret for overlooking previous findings against Balaji due to the assumption he was no longer a Minister.
• Court’s Warning: “You have to choose - freedom or post,” said Justice Oka, questioning what message would be sent if such conduct is tolerated.
• Delay in Trial: With over 1000 witnesses, the trial is unlikely to begin before January 2026, which the bench said does not justify continuing ministership.
• ED’s Affidavit Highlights:

- Balaji served as Minister without portfolio even during his incarceration.

- Took oath again as Minister soon after bail.

- Delayed proceedings with repeated adjournments and procedural tactics.

• Court's Directive to State: The Tamil Nadu government has been asked to provide a list of pending cases, number of witnesses, and classify them as public servants or others.
• Final Opportunity: Despite displeasure, the Court granted Balaji time till Monday to decide and file a counter affidavit.

India’s Private Sector Growth Hits 8-Month High in April 2025

India's private sector witnessed robust growth in April 2025, reaching its highest level in eight months, led by a surge in foreign demand for manufactured goods. However, mixed business sentiment and global tariff uncertainties may dampen future momentum.

Key Highlights:

1. HSBC Flash India Composite PMI:

• Rose to 60.0 in April from 59.5 in March - highest since August.
• A PMI above 50 indicates expansion in business activity.

2. Sectoral Performance:

• Manufacturing PMI rose to 58.4 (from 58.1) - highest in over a year.
• Services PMI increased to 59.1 (from 58.5) - a four-month high.

3. Key Growth Drivers:

• Significant rise in new export orders, especially in manufacturing.
• Boost driven by a 90-day pause on US tariffs announced by President Trump.
• Manufacturing sector saw the strongest export business growth since 2014.

4. Employment Surge:

• Hiring increased across sectors.
• Goods producers recorded highest employment generation since March 2005.

5. Input Costs and Inflation:

• Input costs rose in manufacturing but declined in services.
• Strong demand enabled firms to pass costs to clients, leading to higher selling prices.

6. Business Sentiment:

• Optimism among manufacturers improved due to high orders.
• Services sector outlook softened, leading to an 8-month low in overall sentiment.

7. Strategic Positioning:

• India aims to attract global manufacturing investments as an alternative to China amid high US duties on Chinese goods.

This performance sets a positive tone for FY26, but sustaining growth may depend on managing external pressures, such as evolving global trade policies and maintaining domestic demand strength.

Pakistan Suspends Simla Agreement Amid Tensions Over Pahalgam Attack

In a significant geopolitical development, Pakistan has suspended the 1972 Simla Agreement, a cornerstone of Indo-Pak peace efforts, in response to recent Indian security actions and the aftermath of a terrorist attack in Pahalgam.

Background: What is the Simla Agreement?

• Signed on: July 2, 1972
• Signatories: Indian PM Indira Gandhi and Pakistani President Zulfikar Ali Bhutto
• Context: Post the 1971 Indo-Pak war and creation of Bangladesh
• Location: Shimla, Himachal Pradesh

Core Provisions of the Agreement:

• Peaceful Resolution: All disputes to be settled bilaterally - no third-party mediation.
• Line of Control (LoC): Ceasefire line in Jammu & Kashmir formally became the LoC.
• Non-Interference: Both nations to respect sovereignty, refrain from force, and avoid unilateral changes to the status quo.
• Return of Territory: India returned over 13,000 km² of land captured during the war.
• UN Charter Compliance: Agreed to follow principles of the United Nations Charter.
• Recognition of Bangladesh: Paved way for Pakistan’s eventual recognition of Bangladesh.

Why the Suspension Matters:

• Undermines bilateralism: Pakistan may now seek third-party mediation, e.g., from China, OIC, or UN, especially regarding Kashmir.
• Violates Simla norms: Contradicts the agreed principle of bilateralism and LoC sanctity.
• Escalation risks: Could lead to more ceasefire violations, cross-border tensions, or military posturing.

What Triggered the Move?

• Pakistan reacted to India's internal security clampdown following a terror attack in Pahalgam.
• Reflects a broader diplomatic rift since India revoked Article 370 in August 2019.

Implications:

• Diplomatic Breakdown: Further erodes already strained India-Pakistan relations.
• Regional Instability: Raises stakes along the LoC; possible increase in cross-border skirmishes.
• Internationalisation of Kashmir: Pakistan might push the issue to global forums, undermining India’s position.

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