4 U-turns in a month: Modi 3.0 forced to toe NDA allies' line despite bravado

With the Centre asking the Union Public Service Commission (UPSC) to withdraw its August 17 advertisement regarding lateral entry to senior positions in the government, the NDA government led by Prime Minister Narendra Modi has made its fourth volte face in a month.

Interestingly, the U-turn on the issue of lateral entry came within 72 hours, apparently as not only the Opposition parties but also the key allies of the BJP like JDU and LJP (Ram Vilas)  had resented the move.

The UPSC’s August 17 advertisement drew flak from the Opposition, which claimed it was a way to circumvent reservation in central government positions. The Centre initially tried to take a firm stand on the issue, but relented a day later in the face of a pushback from the Opposition parties as well as some key NDA partners.

Broadcasting Services Regulation Bill

In another volte face, the government last week said it will hold further consultations for preparing a fresh draft of the Broadcasting Bill, amid concerns in some quarters over restrictions on social and digital media space in the proposed law.

The draft Broadcasting Services Regulation Bill, circulated by the government among a few stakeholders, drew criticism from media bodies such as DigiPub and the Editors Guild of India which claimed that digital media organisations and civil society associations were not consulted on the move.

“Ministry is holding a series of consultations with the stakeholders on the draft bill. Further additional time is being provided to solicit comments/ suggestions till 15th October 2024,” the Information and Broadcasting Ministry said in a post on X.

Waqf (Amendment) Bill, 2024

Prior to this, the Centre backtracked on the issue of the Waqf (Amendment) Bill, 2024, earlier this month. The Opposition parties vehemently opposed the Bill which was introduced in the Parliament by Union Minister for Minority Affairs Kiren Rijiju on August 8. Within hours, the government decided that the Bill be sent to a Joint Parliamentary Committee (JPC).

The Opposition leaders alleged that the Bill unfairly targets Muslim places of worship while also being unconstitutional in nature. INDIA bloc constituents also alleged that it violated the right to freedom of religion and the freedom to manage religious affairs, among others.

Sources revealed that several BJP allies, including the TDP, Jana Sena Party (JSP), and Chirag Paswan's LJP, advised the government to avoid rushing the Bill through without thorough consultation. They called for broader discussions with all parties before going ahead with it. While the LJP remained non-committal on the Bill, the TDP, JSP, and other allies such as JDU and Shiv Sena (Shinde faction) voiced their support during the parliament session.

The 44 amendments in the Waqf (Amendment) Bill, 2024, propose to curb the authority of waqf boards, permit greater control by the government, allow non-Muslims to be members of the boards, change how waqf tribunals function and restrict the donation of properties.

Bringing back indexation benefit

The Centre had to step back in yet another instance earlier this month when it decided to offer taxpayers a choice to pay 20 per cent LTCG tax with indexation benefit on sale of property acquired before July 23, 2024.

The move followed outrage and concerns from certain quarters over the Union Budget proposal to remove indexation benefits on long-term capital gains (LTCG).

The government clarified that the other option introduced in the budget to pay the tax on LTCG at a reduced rate of 12.5 per cent without indexation will also be available to taxpayers, as per the list of amendments moved by it in the Finance Bill. Taxpayers can pay the lower tax amount of the two options.

These amendments were seen as a major rollback of the LTCG-related announcements pertaining to the real estate sector in the Union Budget.