Home Economy and Finance Ownership of CMIE and their alleged proximity to P Chidambaram raises questions on the credibility of its Job Survey

Ownership of CMIE and their alleged proximity to P Chidambaram raises questions on the credibility of its Job Survey

Here is the crux of the matter that is not widely known: CMIE, that brings out periodic Job Survey, is wholly owned by Mr Ajay Shah (and his family), the same person who also happens to be one of the main accused in a mega scam commonly known as ‘NSE Co-location’ scam.

The last couple of weeks has witnessed a growing focus on the number of jobs that have been created by the current government. A major reason behind this has been the lack of availability of an official source of employment statistic but the government has tried to change this as it has undertaken the Periodic Labour Force Survey. The results of this survey for the last year will be released soon by the government, however, as we wait for the official statistic on jobs, CMIE has come up with its own pessimistic estimates of “jobs” in India.

In several cases, analysts are not as pessimistic, with reason. For example, an analysis today says that in 4 years, 18 million jobs have been created in the transport and professional sector alone.

Here is the crux of the matter that is not widely known: CMIE, that brings out periodic Job Survey, is wholly owned by Mr Ajay Shah (and his family), the same person who also happens to be one of the main accused in a mega scam commonly known as ‘NSE Co-location’ scam.

- Ad - - article resumes -

Mr Shah has been accused of accessing data from NSE on a preferential basis in connivance with the authorities and sharing this data with certain stockbrokers for use in High-Frequency Trading. The scam is being investigated by SEBI, CBI as well as by Income Tax authorities.

The current MD of CMIE is Mr Mahesh Vyas, who happens to be the brother-in-law of Mr Ajay Shah. The timing of the commencement of this Job Survey raises suspicion on the motivation as well as the credibility of the data. The co-location scam came to public light in late 2015, and the first Job Survey was out in April 2016.

There are several eminent economists who are consistently questioning the veracity of the data, as well as methodology adopted by CMIE. It is pertinent to note that as the co-location scam keeps progressing further (FIR has been filed by CBI against Mr Shah in June 2018), the CMIE reports are getting shriller with bleaker unemployment picture, quite in contrast to several other data points and anecdotal pieces of evidence. Could it be a strange coincidence?

Another interesting aspect to note about this “Survey” is that, ever since its first release where the number of those employed was pegged at 410 million, the trend line of jobs has been steadily declining, despite a ‘V’ shaped recovery in the GDP growth rates during this period.

One fails to understand how can an economy grow at 7% per annum while steadily losing jobs quarter after quarter, as claimed by CMIE? As evident from the growth figures, there was indeed a temporary slowdown in the GDP growth rate, however, the economy recovered immediately, and the growth rate accelerated. Surprisingly, the jobs as measured by CMIE does not provide such a rebound for the employment situation and that seems highly unlikely.

If the labour employed is going down then how can there be an increase in the growth rates? This points at deep inconsistencies within the CMIE data base and it categorically indicates that this data is unreliable. The question that does exist is that whether such inconsistencies are because of genuine errors or are they a case of a deliberate attempt to cause confusion and paint a pessimistic picture of India’s job creation? Given the ownership of CMIE, it appears that it is not a case of a genuine mistake.

A comparative chart of CMIE Job Survey and GDP growth rates are given below.

Source: CMIE website, Trading Economics

A damning story on Ajay Shah in the Hindu Business Line talks of another angle: Ajay Shah routed many of his clients through his wife’s sister, Ms. Sunita Thomas’ IT firm – Infotech Financial. Ms. Thomas is also the wife of Mr. Suprabhat Lala, who was chief of the trading division of NSE, at the time of this scam. Interesting to note that even in this story (as well as in several other stories across various media outlets, links for which are given at the end), Mr. Ajay Shah’s ownership of CMIE is never ever mentioned.

Screenshot from the latest audited Balance Sheet of CMIE showing the shareholding pattern:

Screenshot from the latest audited Balance Sheet of CMIE showing the shareholding pattern

Even the website of CMIE lists Ajay Shah (Director) and Mahesh Vyas (Managing Director).

CMIE list of directors

Several of the news articles (as well as Wikipedia entry on NSE Co-location scam at the time of writing this article) mentions that Mr. Ajay Shah is a very close confidante of Mr P. Chidambaram. Given this information, and the ownership pattern of CMIE, any ‘Job Survey’ from CMIE should be taken with a pinch (or a tonne) of salt, as one would take it from a Congress IT cell.

Related links :

bloombergquint.com

sundayguardianlive.com

moneylife.in

Help Opindia Reach Every Indian. Share This Post
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Big Story

A viral video has been shared several times on Social Media where a railway official can be seen taking money from a poor man travelling on the train.

2019 World Cup Is Here!

Catch the latest on Cricket World Cup as it unfolds, special coverage by Opindia

Proud to be a brand - Made in India?
Now, Advertise on Opindia

Who is Prime Minister Modi’s ‘very special friend’ who came to meet him in the Parliament today?

Prime Minister Modi today shared images with a 'very special friend' who had come to meet him at the Parliament.
Exclusive interview with BLF chief Dr Allah Nazar Baloch with OpIndia

Pakistan plundering Balochistan, we appeal PM Modi to support freedom struggle: Dr Allah Nazar Baloch of BLF speaks exclusively to OpIndia

Away from the glare of the world that often talks tall on Human Rights and the rights of the indigenous people, Balochistan bleeds at the hands of Pakistan. OpIndia interviews founder and chief of Balochistan Liberation Front, Dr Allah Nazar Baloch

Uttar Pradesh: After Triple Talaq, Man pressurizes wife to undergo nikah halala with his brother and uncle

Rabiya further stated that when she refused to give in to her husband's demands, she was thrashed and thrown out of the house.

Hey, New York Times, F**k you, again

India successfully tested anti-satellite missile today, springing it into the elite space club.

Senior citizen who used to put lizards in his own food on trains to get free meal caught by railway officials

A senior citizen named Surender Pal, in his 70s was found guilty of contaminating his own meal to get free ones from the national transporter
Donald Trump lies in the most foolish manner about PM Modi and the Kashmir issue

Had Donald Trump taken time to educate himself about world affairs before becoming President, he would not look foolish

For Donald Trump to lie about something so elementary as India's stand on Kashmir, only goes to show how terribly ignorant the President truly is.

Is there a concerted attempt to sow doubts against PM Modi among his most loyal base?

By now, everyone of us who is out there on social media is aware of this strange new phenomenon.

Live updates Karnataka Trust Vote: Karnataka Government has fallen

JDS-Congress government of Karnataka is facing their second floor test after assembly elections were held in May last year.

Himalayan Blunder : When India gave up on Tibet and what it needs to do now

During Rajiv Gandhi's 1989 visit to China, Deng Xiaoping had suggested: "Let both sides forget the unpleasant period in our past relations and let us treat everything with an eye on the future."30 years have since passed, however, the future is yet to arrive in India, Tibet and China relations.
Image Source: Moneycontrol

Karnataka Congress-JDS coalition government collapses after it fails to get trust vote passed in Assembly

After days of drama, CM Kumaraswamy finally moved the trust vote today that failed to pass in the Assembly. As a result, the Karnataka government has officially collapsed
Subscribe to Day's Top Stories
- Advertisment -

Latest articles

Connect with us

173,806FansLike
160,686FollowersFollow
74,950SubscribersSubscribe
Help Opindia Reach Every Indian. Share This Post