Like the adulterous heroine of Nathaniel Hawthorne's novelThe Scarlet Letter, Narendra Modi is condemned to bear a prominent letter, but his is affixed not to his clothing but to his image: a saffron "C" for controversy.
The chief minister of Gujarat, arguably India's most economically "emerged" state, aspires to higher office - that of prime minister.
But he cannot even be invited to address a seminar by a US university business forum without stirring controversy. the University of conducted a well-publicised protest against Mr Modi's human rights record, arguing that letting him speak on economic growth and development would help "sanitise" his administration's acts during Gujarat's 2002 communal riots, which left more than 1,000 people, mostly Muslims, dead in one short bloody month. The speech was cancelled; the controversy continues.
It can only become more heated, as political parties, pundits and the public considerthe options ahead of general elections due in India by mid-2014. There is the governing Congress Party, with its dynastic mindset and corruption-ridden economic mismanagement. And then there is the main opposition Hindu nationalist BJP, with its muscular vision for India, which is widely expected to chooseMr Modi as its prime ministerial candidate.
Mr Modi's candidacy would force India into an epic struggle between its conscience and its consumerist instincts, between collective principles and collective aspiration. Like Buridan's Ass, the hungry hypothetical creature named after the French philosopher, a fast-developing India starved of good governance will hesitate midway between hay and water; in this case, between moral principle and monetary profit.
Mr Modi, his supporters say, offers economic competence, excellent administrative skills and an enviably clear example of what the future might look like. They mean Gujarat, which The Economist lyrically anointed "India's Guangdong" in July 2011.
But that's a problem. In principle, many Indians don't want Mr Modi's Gujarat to be a template for India, even though his state outstrips the national growth rate and has become an industrial hub that accounts for 16 per cent of manufacturing and nearly a quarter of exports. It has offerings generally hard for businesses to find in India - little red tape, reasonable and fair labour laws, decent roads, constant electricity and water, and an efficient bureaucracy. It runs an enthusiastic and effective e-governance project, so much so that the UK's medicinesregulator recently signed up for training.
Few deny that all of this has come to pass because of Mr Modi, an intelligent politician and good manager, who combines bachelor rectitude with a reputation for personal financial probity. But not everyone is convinced that Gujarat has quite the ring for India, land of the Mahatama, in the last quarter of its first century as an independent country.
Consider this:
ŸFor eight years now the US has by Congressional resolution refused Mr Modi a diplomatic visa, the first and only time such a denial has been issued on the grounds of a religious freedom violation, under the US International Religious Freedom Act of 1998.
Ÿ On the 10th anniversary of the riots, the US Congress, which is as prone to self-serving weasel words as any legislative body, recalled the events and quotedBrown University professor Ashutosh Varshney, an expert on Indian riots, to say it was "the first full-blooded pogrom in independent India".
Ÿ The US state department, along with several Indian and international organisations, has reported on "the role of Chief Minister Modi and his government in promoting attitudes of racial supremacy, racial hatred, and the legacy of Nazism through his government's support of school textbooks in which Nazism is glorified… [they] describe the 'charismatic personality' of 'Hitler the Supremo', and the 'achievements' of Nazism at great length."
ŸWhen Mr Modi visitedLondon a few months after the riots, I asked him if Gujarat'simage overseas was affected by international criticism, but he was dismissive. He compared the Gujarat carnage to the post-September 11 US retaliation and Delhi's anti-Sikh riots after Prime Minister Indira Gandhi's assassination by her Sikh bodyguards. "No one has asked this question to the USA after 9/11. Delhi is developing fast - no one has asked this question to Delhi after 1984. If it does not matter to Delhi and USA, why should it matter to Gujarat?"
Ÿ Last but not least, Markandey Katju, a retired Supreme Court judge and current chairman of the Press Council of India, recently called for Indians to recognise that glossing over the killing of Muslims was reminiscent of Kristallnacht, the 1938 Night of Broken Glass in Nazi Germany, when state paramilitaries helped to attack Jewish properties and people.
If that sounds extreme, it is at least worth noting that this is the context in which Mr Modi is condemned to wear controversy like an albatross around his neck, regardless of hiseconomic management and governance of Gujarat.The controversy still roils.
"Right now, Modi has the tailwind aiding his rise," wrote the columnist R Jagannathan."The Indian electorate has changed. It is no longer taken in by mere political posturing. It is demanding governance, and is now willing to give those who deliver a longer stint in power, never mind what the media thinks about them."
Mr Modi as candidate for prime minister appears to present India with a choice between good management without morals and principled governance consistent with the original secular idea of India. It would be the choice between base gratification of the needs of today and the partially realised aspirations for tomorrow.
Rashmee Roshan Lall, the former editor of The Sunday Times of India, is now a freelance writer
On Twitter: @rashmeerl
KILLING OF QASSEM SULEIMANI
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Vaccine Progress in the Middle East
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T
Price, base: Dh840,000; Dh120,000
Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo
Transmission: Eight-speed automatic; seven-speed automatic
Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm
Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm
Fuel economy, combined: 9.9L / 100km; 11.6L / 100km
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
The Kingfisher Secret
Anonymous, Penguin Books
Leading all-time NBA scorers
Kareem Abdul-Jabbar 38,387
Karl Malone 36,928
Kobe Bryant 33,643
Michael Jordan 32,292
LeBron James 31,425
Wilt Chamberlain 31,419
RESULTS
Argentina 4 Haiti 0
Peru 2 Scotland 0
Panama 0 Northern Ireland 0
Killing of Qassem Suleimani