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GST Council fails to end deadlock on compensation to states

Union Finance Minister Nirmala Sitharaman said the Centre can certainly address the cess issue by borrowing under option 1-Rs.1.1 lakh crore through a special window facilitated by RBI and Ministry.

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The Goods and Services Tax (GST) Council meeting on Monday failed to arrive at a consensus between Opposition-ruled states and the Centre on a contentious issue of borrowings to meet shortfalls in cess collections.

Union Finance Minister Nirmala Sitharaman said the Centre can certainly address the cess issue by borrowing under option 1- Rs.1.1 lakh crore through a special window facilitated by RBI and Ministry. The Centre is ready to help the States who have decided to borrow to bridge the cess shortfall, the Minister said, while briefing the media late on Monday. 

Sitharaman further stated that if borrowing would be done by the Centre it will result in a surge of G-sec yields, and borrowing costs for states and the private sector. The borrowing falls under Article 293 of the constitution and it is the state’s right to decide what they want to do, she added.

GST Council meeting

This was the third meeting in a row that discussed compensation shortfall without a decision. However, 21 states have agreed to take the resolution while the other opposition ruled states termed the process as illegal.

Kerala Finance Minister Thomas Issac objected to the announcement of 21 states that will be allowed to choose Option 1 and termed it “illegal”. He tweeted that the Option 1 involves deferment of compensation payment beyond five years  for which the council decision is crucial as per Attorney General’s opinion. He claimed no such decisions have been made in the council meeting. The announcement in the press conference is a total disregard for democratic norms, he wrote.

Further, Punjab Finance Minister Manpreet Singh Badal said there was no agreement at the meeting to the demands of 10 opposition states for dispute resolution mechanism and formation of a Group of Ministers on the issue.

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Stressing upon the differences, Sitharaman was reluctant to term the compensation issue as a dispute. She said the absence of unanimity doesn’t mean there will be dispute. The Centre is open to discussion and the states can talk, she added.

Meanwhile, as per the Centre’s proposal, the cess collections will be used to repay the interest and principal amount of the borrowing and the deferred compensation.

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Drunk speeding Audi crushes pedestrians in Jaipur, one killed and 15 injured

A late-night crash involving a drunk speeding Audi in Jaipur left one pedestrian dead and at least 15 others injured after the car ran over roadside vendors and pedestrians.

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One person was killed and at least 15 others were injured after a speeding Audi car, allegedly driven by drunk occupants, ran over pedestrians and roadside vendors in Rajasthan’s Jaipur late Friday night.

According to the police, the luxury car lost control and first hit a road divider before ploughing into food carts and roadside stalls over a stretch of nearly 30 metres. The vehicle eventually crashed into a tree and came to a halt, damaging several parked vehicles along the way.

Visuals from the scene showed shattered food carts scattered across the road, while the Audi was left completely mangled due to the impact.

A total of 16 people were hit in the incident and were rushed to a nearby hospital. Four of the injured were reported to be in critical condition and were later referred to Sawai Man Singh (SMS) Hospital for advanced treatment.

One of the injured, identified as Ramesh Bairwa, a resident of Bhilwara, succumbed to his injuries during treatment.

Police officials said that four people were inside the car at the time of the crash, and all of them were allegedly under the influence of alcohol. While one person has been arrested, three others fled the spot after the incident.

The driver of the Audi has been identified as Dinesh Ranwan, a resident of Churu district in Rajasthan. The vehicle has been seized, and a search is underway to trace the remaining accused.

Rajasthan Chief Minister Bhajanlal Sharma expressed grief over the incident and instructed officials to ensure proper medical care for the injured. Deputy Chief Minister Premchand Bairwa and Health Minister Gajendra Singh Khimsar visited the hospital to enquire about the condition of those injured.

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Mamata Banerjee says ED raids on I-PAC have politically rejuvenated her

Mamata Banerjee led a protest rally in Kolkata after ED raids linked to I-PAC, saying political attacks only rejuvenate her and accusing the Centre of misusing agencies.

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mamta banerjee

West Bengal Chief Minister Mamata Banerjee on Friday escalated her confrontation with the Centre following Enforcement Directorate (ED) raids linked to the Indian Political Action Committee (I-PAC), asserting that political attacks only strengthen her resolve.

Banerjee led a nearly 6-kilometre protest rally in Kolkata, beginning from Jadavpur and ending at Hazra, with senior Trinamool Congress leaders and party workers marching alongside her. Large crowds gathered along the route in a show of support.

Addressing party supporters after the rally, the Trinamool Congress chairperson defended her decision to enter the residence of I-PAC co-founder Pratik Jain during the ED raids on Thursday, an act that has drawn criticism from the Bharatiya Janata Party and prompted demands for an investigation.

“I did nothing illegal. I went there as the Trinamool Congress chairperson,” Banerjee said, adding that several items had already been taken away by the time she reached the premises.

Allegations of misuse of central agencies

The chief minister accused the Centre of using agencies such as the ED and the Central Bureau of Investigation for political purposes. Questioning the intent behind the raids, she said political opponents were attempting to weaken her party ahead of the 2026 West Bengal Assembly elections.

“If someone tries to kill me politically, don’t I have the right to defend myself?” she asked.

The ED action against I-PAC is linked to an alleged coal scam. Banerjee claimed that leaders from the BJP were also involved in coal-related irregularities and asserted that she possessed evidence. “I have proof on pen drives. I will release it when the time comes,” she said.

‘Politically rejuvenated and reborn’

Taking a combative tone, Banerjee said repeated attempts to target her had only made her stronger politically. “If someone tries to hit me politically, I get politically rejuvenated and reborn,” she declared.

Referring to recent political developments in other states, she alleged that central agencies had been used to destabilise elected governments elsewhere, adding that similar attempts would fail in West Bengal. She expressed confidence that the Trinamool Congress would secure a decisive mandate in the 2026 Assembly polls.

BJP hits back

The BJP accused the West Bengal government of corruption and claimed that the chief minister’s actions during the ED raids raised serious questions. Party leaders alleged that Banerjee had intimidated officials and demanded that she be made an accused in the case.

The political confrontation comes hours after several Trinamool Congress MPs, including Derek O’Brien and Mahua Moitra, were detained by Delhi Police while protesting outside Union Home Minister Amit Shah’s office. Banerjee criticised the detentions, describing the ruling party’s approach to democracy as one that demands “obedience”.

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Ayodhya bans online delivery of non-veg food within 15 km of Ram temple

Ayodhya authorities have prohibited online delivery of non-vegetarian food within 15 km of the Ram temple following complaints over violations in sacred areas.

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Ram Mandir

The Ayodhya district administration has imposed a ban on the online delivery of non-vegetarian food items within a 15-kilometre radius of the Ram temple, following repeated complaints about violations in religiously significant areas.

Officials said the decision was taken after residents and pilgrims raised concerns over online food delivery platforms supplying non-vegetarian items in locations falling under the Panchkosi Parikrama route, considered sacred by devotees.

Complaints against hotels and online platforms

Authorities also flagged reports suggesting that certain hotels and homestays in Ayodhya were serving non-vegetarian food and alcoholic beverages to guests, despite restrictions. Establishments have been issued strict warnings to immediately stop such practices, officials said.

The ban comes months after the Ayodhya Municipal Corporation decided in May 2025 to prohibit the sale of liquor and meat along the 14-km Ram Path, which connects Ayodhya with Faizabad. However, locals claim that liquor sales continue along the route, with more than two dozen outlets still operating.

A municipal officer said meat shops along the Ram Path, including those in Faizabad, had been removed. However, action against liquor vends requires authorisation from the district administration, leading to delays in enforcement.

Monitoring to ensure compliance

Assistant Food Commissioner Manik Chandra Singh said complaints had surfaced that non-vegetarian food continued to be delivered to tourists through online platforms despite existing restrictions.

“Following these complaints, a ban on online non-vegetarian food delivery has been imposed. Hotels, shopkeepers and delivery companies have been informed, and continuous monitoring will be conducted to ensure compliance,” Singh said.

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