Claims of unaddressed farmer grievances and alleged loopholes in economic agreements raise concerns
Team Clarion
NEW DELHI — The Congress party has raised new allegations of corruption against Prime Minister Narendra Modi’s government, spanning issues from local land acquisition in Jharkhand to an economic partnership with the United Arab Emirates. Congress President Mallikarjun Kharge, supported by Chief Minister Hemant Soren, arrived in Jharkhand to discuss these issues publicly. In a statement shared across social media, senior Congress leader Jairam Ramesh detailed accusations of coercive land acquisition and irregularities in international trade.
Land Acquisition in Jharkhand
The controversy involves a project initiated by the so-called ‘Modani Group’ to establish coal-based power plants in Jharkhand’s Guda district. According to Congress, 1,255 acres of farmland were forcibly acquired from local farmers under questionable circumstances. “The acquisition process involved intimidation and coercion, facilitated by the BJP-led government at the time,” wrote Ramesh. He added that the power plant project received several governmental benefits, including a Special Economic Zone (SEZ) designation, reportedly due to pressure from the central administration.
Farmers allege that they are still waiting for full compensation years after the acquisition. “This project was initially intended to supply power to Bangladesh. However, following political shifts in Bangladesh, the central government permitted the ‘Modani Group’ to divert the energy supply domestically, compounding the grievances of farmers who have yet to receive compensation,” Ramesh noted.
India-UAE Economic Partnership
Congress also pointed to alleged irregularities in the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE. Ramesh explained that since the agreement’s signing in 2022, India has imported platinum alloys worth ₹24,000 crore, a large portion of which is reportedly misclassified gold. Tax authorities claim that over 90% of the “platinum alloys” are, in fact, gold imports, which has led to substantial revenue losses.
“Due to differences in import duties, with platinum alloy taxed at 15.8% and gold at 18.45%, the reclassification has cost India approximately ₹1,700 crore in lost revenue,” Ramesh stated. The Congress leader argued that this loophole has undermined India’s regulatory framework, allowing private traders to bypass restrictions on gold imports and circumvent higher tax rates.
In July 2024, Finance Minister Nirmala Sitharaman adjusted import duties on gold in an attempt to address the issue. Congress claims this policy shift demonstrates that instead of enforcing stronger regulatory checks, the government has altered policies to accommodate the irregularities.
Broader Implications
The Congress party alleges that these incidents reflect a pattern of corruption and policy manipulation within the Modi administration, with benefits reportedly favouring a select group of individuals. Ramesh argued that India’s regulatory framework for trade and land acquisition is being eroded to accommodate powerful interests at the expense of public welfare.
“It’s clear that all these adjustments are being made to benefit certain groups, with the country’s resources and regulatory system sacrificed in the process,” Ramesh added. He called for transparency and accountability, urging the public to question the motives and beneficiaries of these decisions.
As the Jharkhand Assembly elections draw near, Congress is intensifying its criticism of the BJP government’s handling of economic and land policies, arguing that its approach has disadvantaged local communities while favouring specific corporate entities. This narrative is expected to play a significant role in shaping the campaign dialogue in Jharkhand and beyond.