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Not only i believe you should convert your litecoin into bitcoin but i strongly advice you to dive harder into trading BTC.With 10 years in the market and with so much speculation around it is perfectly understandable why people hesite to trade BTC.It´s a natural human behavoir.Although most people mainly look at bitcoin, as the most commonly used blockchain application. Because of this, people have come to see the potential.But let´s try to look at some indicators that i personally like to check from time to time to help me have a more clear vision what to expect in the near future:The blockchain has already aroused the interest of large companies such as IBM.The first major bank enters Bitcoin (J.P. Morgan)Nine large banks are fully committed to bitcoin technologyBitcoin is not money but merchandiseAnd these past couple of years more and more companies, entrepreneurs and investors are aware of how well it actually works.The number of ompanies that allows payments with bitcoin have increase exponentionally last year alone and in the online world in particular, it is increasingly accepted as a payment method by ecommerce stores.This is why i believe bitcoins are going to remain as an attractive investing opportunity for years to come and therefore improving your understanding and trading skills with it is a must now.I will name some of the applications to see if i can get my pont accross.One of the most promising applications of Blockchain is the Smart Contracts .The simplest way to explain how Smart Contracts work is the formula "If-This-Then-That" - the name of the startup IFTTT goes back to them.This equation is both a basic principle of programming and symbolic of automation . If a certain condition is met ("if this"), then a predefined action ("then that") automatically occurs.Smart contracts work according to this principle. As soon as a certain condition is met - an ordered product arrives at point A - an associated action is automatically triggered - the goods are paid.These are contracts or contract-like constructs that are stored in the blockchain.What may take several weeks to complete, can be carried out with smart contracts theoretically in a few minutes.All relevant information on mortgages, building permits, ownership, loan agreements and tax obligations can be stored in the Blockchain.Actions such as changing the land register entry can also be made automatically as soon as the money has been transferred to the seller.Blockchain provides the foundation for smart contracts that have the potential to transform the economy as a whole.One of the advantage of Smart Contracts compared to normal transactions: With them, people can trade with each other who do not know each other and have not trusted each other accordingly.The secure technology behind the Smart Contracts, the Blockchain, creates or replaces the trust.Not only trading platforms such as Ebay or Amazon, but also services offered by Airbnb or Uber could be fully converted to smart contracts.The advantage: the transactions handled via Smart Contract are more efficient , safer and cheaper.In general all areas where digital products and services are sold are likely to be the first to integrate the blockchain.In the future, the licensing of software sales could be much simpler and more precise due to the Blockchain.By the exact regulation of the access rights, the unambiguous identification of the users and the exact documentation of the sales or also the use licenses can be bought after the individual need .Similarly, reproduction rights when purchasing music could be accurately understood.And after the transformation of the music industry through iPod, iTunes, and Spotify, another revolution could be through the direct sale of music by artists directly to the fans.In general, copyright proofs via Blockchain are possible and associated remuneration models can be regulated in Smart Contracts .Blockchain technology creates trust and security : when all parties to the contract know that a transaction is under warranty as agreed, it automatically creates trust.Smart contracts and the Blockchain can be used to completely restructure essential parts of the economy and society .I can go on and on about the benefits of mastering trading with bitcoin.i will end with a recoomendation of an extraordinary bitcoin trainning program that will teach you A to Z anything you need to know in order to take advantage of this exiting cryptocurrency.GL & Cheers!

Arvind Kejriwal resigned because he engineered the situation so as to facilitate his resignation.Brace yourselves, this is a long answer. If you’d rather skip all the talk about their short lived term, please scroll down to the bolded “What did AAP do in 49 days?”I’ll lay out here the facts, hopefully without bias, and provide my comments as well, which will be biased. For all purposes, I will use ‘AAP’ and ‘Kejriwal’ interchangeably. Facts are in regular text and my comments are in italics.I’ll start with the manifesto. This consists of the promises they’ve made before coming into power, to be executed when they come into power.Aam Aadmi Party’s manifesto can be found here: Page on media2.intoday.in and File Shared from BoxThe main objectives outlined in this manifesto are:Delhi Jan Lokpal bill that would be passed within 15 days of coming into power. (Lokayukta would be modeled along this line, and all ministers and MLAs would come under its purview. Whistleblowers to be given protection)Devolving power directly to people. Introduction of Swaraj Bill. (Power to Mohalla Sabhas, approximately 3000 new Mohalla Sabhas)Full statehood to Delhi. (Police to be under govt’s control)Cutting electricity bills by half. (Audit distribution companies, independent agencies to check meters, withdraw cases against those who participated in civil disobedience earlier with AAP, Discoms brought under RTI)Clean water in every home, cited as the party’s first priority. (Tanker mafia, installing water meters, use of Munak canal, provide water to unauthorized slums, free water to families that use 700l, rainwater harvesting, water recycling.)Building sewage systems and 2,00,000 community toilets. (Sewage meters, recycling water)Waste management. (Littering to be fined, plastic bags to be banned, segregation of waste)High quality education, with building at least 500 new schools. (Teachers appointed at all vacant posts, regulate fees in private schools/colleges, introduce child-friendly education system)Improving public healthcare, with a special task force getting to work on Dengue cases currently in Delhi. (Fill all vacant doctor and nurse posts, complete half built hospitals, controlling pollution)Increased security. (Citizen’s Security Force that would install lighting and CCTVs. Police and security martyrs’ famlilies to receive 1 crore compensation)Swift dispensation of justice. (Establish new courts, temporary courts for pending cases)Power to Gram Sabhas. (Remove restrictions on land use and claim, provide tenure to farmers, improve bus service in villages, veterinary hospitals, sports facilities)Regularize unauthorized colonies and rehabilitate slums. (Repair streets, provide water, waste management in slums first)Increasing employment. (Young entrepreneurs to get loans at lower rate, vacant posts in govt. filled, space, security, license to street vendors)Facilitate trade. (Withdraw FDI, make trade friendly policies, simplify VAT)No contractualisation of jobs and social security. (Ensuring strict minimum wage)Public transport imporovements. (Unified Transport Authority to be established, developing Ring Rail services, expand metro)Improved roads, parking, arrangements for drivers and commuters. (multi storeyed parking, pavements, special corridors for cyclists, auto stands)Ending pollution and encroachment in Yamuna, Delhi Ridge.Implement SC, ST, OBC reservation. (Simplify issuing caste certificates)Provide opportunities to Valmiki community.Peace and equality to Muslims. (Second language status to Urdu, Punjabi, no fake encounters against Muslims, resolve Muslim graveyards land issue, make Delhi Waqf board transparent)Justice to victims of 1984 massacre (infrastructure in areas where they live)Protecting people with disabilities, provide rights to trans-gender community and nomadic tribes.Encourage sports and culture. (Bring sports under RTI, public library in each constituency, recreation facilities etc)When they came to power, these are the key points they wanted: Aam Aadmi Party election manifesto's key points | Latest News & Updates at DNAIndia.comHere’s another link outlining the 18 points they made in a letter to the BJP and Congress: 18 issues raised in AAP letter to Sonia, RajnathEver since they were elected into power, and in fact, starting a few days prior, AAP’s modus operandi seems to have been to make sure they’re in the news every single day, for one reason or the other. I do not exaggerate, as almost everyone knows. Every.single.day, they’ve occupied more airtime than any other issue. {Edit: This may or may not be because of the media alone. But AAP ensures that if it's a slow news day, they have a plan.}I will now outline a timeline of AAP’s political and social activities each of the days they’ve been in power. I spent close to six hours on this answer, trying to obtain every type of news article published about the party every day they were in power. I’ve included positive news as well as criticisms. If I’ve omitted something, please point it out to me, and be assured it’s not intentional. I’ve also provided citations in brackets in the body of the answer itself instead of as footnotes for easier viewing.Dec 28: AAP is voted into power, with the support of Congress, and then taking a mass SMS poll,website poll, email campaigns, and public meetings from Delhi residents. (Delhi elections: 6.79 lakh took part in Aam Aadmi Party referendum | Latest News & Updates at DNAIndia.com) The decision for a referendum evokes mixed responses. (AAP’s Referendum Good For Democracy - India Opines) (AAP’s referendum on govt draws flak from Delhiites - Hindustan Times) (Page on niticentral.com) {Edited}Members of the party and their background:Arvind Kejriwal: Reputed Magsaysay award winner. Mechanical Engg in IIT-KGP. Tata Steel 1989 to 1992, with one year’s sabbatical to study for the civil services exams (Kejriwal, Arvind). Joined IRS in 1995. Granted 2 years of paid leave in 2000 to pursue higher education on condition that upon resuming his work he would not resign from the Service for at least 3 years. Failure to abide by that condition would require him to repay the salary given during the leave period. Rejoined in 2003 and worked for 18 months before taking unpaid leave for 18 months. Resigned from his position as a Joint Commissioner of Income Tax in Feb 2006, in New Delhi. Government of India claimed that Kejriwal had violated his original agreement by not working for three years. Kejriwal refuted this, saying that 18 months of work and 18 months of unpaid absence amounted to the stipulated three year period during which he could not resign and that this was an attempt to malign him due to his involvement with Team Anna. The dispute ran for several years until, in 2011, it was resolved when he paid his way out of the Service with the help of loans from friends. (Govt finally accepts Arvind Kejriwal’s resignation) He has an impressive track record of activism, starting from 1999.Manish Sisodia: A journalist who had worked for All India Radio and Zee News previously. (Manish Sisodia: From journalist to Kejriwal’s Man Friday )Rakhi Birla: Masters in Mass Comm., previously a reporter for Jain TV.Somnath Bharti: MSc. from IIT-D, degree in law.Satyendra Jain: Former architect.Madhu Bhaduri: A former Indian diplomat, has served as ambassadors in Hanoi, Mexico City, Vienna, Belarus, Lithuania, Portugal, Hamburg. Also a writer.Kumar Vishwas: Hindi poet and literature professor in Rajasthan for 16 years. Recipient of numerous awards (Kumar Vishwas) Performed standup comedy and in Kavi Sammelan in multiple reputed education institutions and abroad.Shazia Ilmi: Mass Comm major, former prime-time television anchor at Star News. Regularly touted as the ‘Muslim Face’ of AAP, her family reportedly has ties with Congress (Shazia Ilmi, ex-journalist: The Muslim face of Team Anna) Her uncle is a member of Congress, while her brother in law, a former Congress politician, is now a member of BSP. Her brother contested against as an independent candidate (AAP vs BAAP! Shaziya Ilmi, brother Rashid Ilmi in faceoff), and publicly alleged her of concealing assets, and requested police protection from Shazia for allegedly resorting to violent behavior with him and their mother. (AAP Candidate Shazia Ilmi’s brother demands protection from sister) Her eldest brother is close to Salman Khurshid (‘Salman Khurshid is behind this attempt to malign me,’ Shazia Ilmi) She is also a film director and documentary maker. (Page on www.10francs.fr)Yogendra Yadav: Academic (political, social sciences), Senior Fellow at Centre for the Study of Developing Societies, former member of NAC, appointed by the UPA government. Also a psephologist and analyst, appeared on numerous TV shows, writer, and award winner. (Yogendra Yadav | CSDS). He was, along with Shashi Tharoor, the former, informal political advisor to Rahul Gandhi (Expert boost is the secret of Rahul’s raw power | Latest News & Updates at DNAIndia.com) (madhukishwar: Not long ago when Yogendra ...)Binayak Sen: A pediatrician and activist, he's the winner of numerous awards, including the Gandhian International Peace Prize. He had been detained for allegedly aiding Naxalites in 2007 in Chattisgargh, and then sentenced to life again in 2010 for helping Naxalite forces form a network, violating Chattisgargh state laws. He is currently out on bail, with the case still pending. (Dr Binayak Sen found guilty of sedition, gets life imprisonment - The Times of India) (Binayak Sen)Kundan Singh, an allegedly notorious outlaw in Bihar who has over 24 cases of kidnapping, extortion, and murder against him. His membership was subsequently canceled by Kejriwal after objections raised within the party. (History-sheeter Kundan Singh leads party in Bihar) (AAP’s rented office in Patna in the eye of storm)Kejriwal takes oath, with 6 ministers in Ramlila Maidan, where he traveled to via the metro. Expense of Rs.6.33 lakh was incurred, excluding expenses for public works department, north Delhi city corporation, Delhi water board, health and family planning department, Delhi fire brigade services, Delhi Police, power department, and information and broadcasting department. (Arvind Kejriwal’s oath-taking ceremony cost Rs 6L - The Times of India) {Edit: The actual expense incurred was Rs. 13.41 lakh Arvind Kejriwal's oath-taking ceremony cost Rs 13.41 lakh, reveals RTI) The decision draws mixed response and is criticized by the opposition for tokenism display as taking the oath in Ramlila Maidan allegedly costs the tax payer Rs.50 lakhs, as opposed to only Rs.20,000 that would have been the cost had he taken oath in LG's residence. (Kejriwal's oath-taking ceremony cost govt Rs 50 lakhs: BJP leader) {edited}He promises enquiry into the CWG scam. (Kejriwal to be Delhi CM-designate today, vows ministers won't use red beacons - The Times of India) He orders transfer of nine officials (Page on firstpost.com), banned red beacons, and removed security for all ministers and MLAs. (Kejriwal takes oath, says no to red beacon)Vinod Kumar Binny of AAP goes on record to call Kejriwal a dictator and states that his agenda, when fulfilled, will cheat the public.Dec 29: Deadline for the original passing of Lokpal bill as promised by Kejriwal, but revised since manifesto. (AAP will pass Lokpal Bill on December 29, 2013 if voted to power, says Arvind Kejriwal) .Delhi policemen come out to declare their support for AAP. (Common Delhi policemen approve AAP's 'Aam Aadmi' government).Party recruits new volunteers in Kolkata. AAP reaches out to ant-Kudankulam protesters. (After forming govt in Delhi, AAP reaches out to anti-Kudankulam protesters) Kejriwal urges Udayakumar to join them and contest in Lok Sabha elections.For a party that talks so much about development, this was another misstep, as talks with Maulana Tauqeer Raza Khan were. Kudankulam nuclear project is known to be perfectly safe (Kudankulam Nuclear Power Plant), but AAP appeals to people who now protest against it out of the blue, just in time for elections. Maulana Tauqeer Khan has ordered multiple fatwas and has announced a bounty for Taslima Nasreen’s head, all of which Kejriwal claims to have not known after his “chance” encounter with him on the streets.Dec 30: AAP attempts to implement their promise of 700l free water, but due to lack of pipelines and spiked costs, settles at 667 litres of water per household with pipelines, starting Jan 1st, 2014. Kejriwal clarifies that the decision is permanent, and not only for 3 months. The free water comes at a price though- a spike in water tariff of 10% for anyone consuming above this quantity. AK explains that this would cause a revenue loss for DJB of Rs. 160cr per year, and Rs. 40cr this year. Implementation of the system is expected to be faulty at best, as only a little over 65% of Delhi has pipelines, and the poor without water would continue to remain without water. Another issue raised was that the DJB has no existing system to measure the amount of water provided to a house or information on the population of an area, based on which water supply quantity is to be decided. (http://www.thehindu.com/news/cities/Delhi/aap-delivers-on-water-promise/article5519122.ece) Almost only half of the installed meters are functional (Congress accuses AAP of cheating people on water)AAP confirms that it will contest in Lok Sabha polls. (AAP will be alternative to Dravidian parties: Prashant Bhushan)Dec 31: Members of the AAP continue to tout the press and media as being unbiased and bringing in attention to important and relevant events.The first meeting of the Secretariat was clumsy and haphazard as the ministers learn the ropes. Satyendra Jain calls for a press meet, but humbly apologizes for turning up late and cancels the meet. Manish Sisodia promises the party would be more transparent.Jain inspects healthcare facilities in N. Delhi and proclaims them as excellent, while Sisodia inspects primary schools and notes them as miserable, without infrastructure or even toilets. (AAP's first-time Ministers out of their depth)Jan 1: Former BJP MLA, Kanu Kansaria joins AAP. He is a gynecologist and states he was on the verge of joining Congress, but joined AAP instead. Retired IAS officer and director of MGLI, AR Bharadwaj joins AAP. (Former BJP MLA Kanu Kalsariya joins Aam Aadmi Party)Kejriwal promises 50% power subsidy on power consumption upto 400 units. This decision would cost the exchequer Rs. 200 crores practically (or Rs. 61 crores on paper). DERC claims that the government cannot fix the tariff as it’s a regulatory body issue. Kejriwal says that govt can’t fix the tariff but can provide subsidy (ie, compensate the power companies for the rest of the 50%, compensating for the loss incurred). Kejriwal requests CAG to order probe into 3 power distribution agencies. (Kejriwal’s new year gift to Delhi: 50% power subsidy), (AAP fulfills another poll promise: After free water,Delhi gets half-price power)There is a very obvious, huge, gaping flaw in this plan. 50% subsidy will cause a loss of Rs. 61 crores to the Delhi public, as admitted by Kejriwal. Slashing power tariff this suddenly to so many people would result in massive loss and mismanagement, as basic economics teaches. The budget is present for a reason. In effect, the government tells the public that they have 50% off on power, and then takes the rest of the money from the budget allocated to education or healthcare services. Or proceeds to increase the tax. Not to mention, charging higher tariff after 400 units in the middle of winter. A highly impractical system.Jan 2: AAP wins trust vote in Delhi Assembly. Kejriwal states that Jan Lokpal Bill is the next priority. AAP declares that they are against FDI in retail.Congress’s Arvinder Lovely backs Kejriwal, but states that the free water will make it more expensive for the poor people and easier for the ones who can afford it.First questions about AAP funding being raised. (Live: Kejriwal's AAP govt wins trust vote in Delhi Assembly)Jan 3: AAP’s MS Dhir wins the Delhi Assembly speaker post.Jan 4: AAP start preparation for Lok Sabha polls. (AAP members chalk out plans for 2014 Lok Sabha polls) AAP states that only people with no criminal or personal charges will be considered for candidates.It is revealed that Kejriwal was allotted twin bungalows of 5 bedrooms each, which he backs out of taking due to public furor. Expensive repair work on the twin bungalows is suddenly stopped, people question waste of tax payers’ money.The problem here isn’t the twin bungalows itself. Every minister gets bungalows. Kejriwal was perfectly entitled to live in them. However, he had made it very clear that he will not use government houses and vehicles if he came into power. So this move to live in bungalows was seen as rather hypocritical of him. For all practical purposes, he should have lived in those bungalows.{Edit: I‘ve been pointed out that Kejriwal was allotted two 5-bedroom duplex flats, not bungalows. The media has used the terms interchangeably. I’m trying to find the difference, but it looks like a duplex flat = bungalow is the way it has been used.So, to clarify, Kejriwal was allotted two five-bedroom duplex flats that he refused. And refused because “my friends, supporters have been calling me and sending messages saying I should not move into the five-bedroom flat. So, I have decided to forego them.” (Arvind Kejriwal rejects 5-bedroom house; requests government for smaller flat) Kejriwal also said that the houses that were allotted to him were much smaller than Sheila Dixit’s bungalow.This is the house that was allotted to Sheila Dixit (not her current residence) when she was reelected in 2008:This is the house that was given to Kejriwal:The government incurred expenses in trying to find a suitable accommodation for Kejriwal in the forthcoming days. (Delhi offers six housing options for CM Arvind Kejriwal | Latest News & Updates at DNAIndia.com) Expenses are not mentioned, but the procedure and problems are outlined, and would have, no doubt, cost money.}Kejriwal takes to twitter to defend his minsters being allotted Toyota Innova cars, saying that they had refused only red beacons, not official cars. (We said no to red beacons, not to official cars: Kejriwal) The ministers should use cars, both for safety, and for convenience. It saves a lot of trouble for daily commuters.Delhi court sets hearing date as Jan 25 for five cases filed against AAP and Kejriwal for violating prohibitory orders, unlawful assembly, and other offences. (Delhi court to hear cases against Kejriwal on January 25)Kejriwal says that he will not contest the 2014 Lok Sabha elections despite the party going national. (Page on firstpost.com)Jan 5: Prashant Bhushan starts trouble by stating that there should be a referendum in Kashmir to decide whether the army should take care of internal threats. Err. What? It’s your country, man. Don’t you want to defend it? I’m sorry, but this gets me very angry. Why would you want to take a poll to find out if people of your country want to be protected? Kejriwal clarifies that the view's are Bhushan's own and do not reflect that of the party.{Edit: I’ve drawn a lot of flak for stating that I’m angry that Bhushan made a comment like this. I’m surprised, considering that this issue is the least pertinent to Kejriwal’s resignation. But I’ll clarify my stand anyway.Asking for a referendum is wrong because of various reasons. I’ll simplify this with an example. Let’s suppose there is a gang fight on your street and ten policemen are deployed for the protection of the residents. Out of these ten men, two or three misbehave and cause trouble. But together, they protect the street and curb the violence. They keep away members from other gangs into entering your street, and prevent fighting within. Now, people who look at it from outside feel that the ten policemen’s presence is too much of a limitation, so they should be taken away. Is a referendum a fair deal? Most of the houses might vote yes, but is that the reasonable thing to do, to expose the residents to threats? Besides, you know that there are a few residents who are secretly aiding gangs. Wouldn’t pulling away the police force make it easier for them?Expand this to Kashmir. It is common knowledge that many Kashmiris want to secede to Pakistan and some aid infiltrations. But it is the duty of the Government of India and the Army to protect the citizens. Remember, there are still people who want to be a part of India. And even if everyone wants to be a part of Pakistan, removal of army presence is not justified. Indian Govt holds supreme authority over Kashmiri land and will continue to do so. India has deployed armed forces to protect the land. Stating that there should be a referendum is not just an insult to the Constitution and the Armed forces, but also a highly dangerous statement, bordering on sedition (depending on how you look at it). Kejriwal said that the feelings of the people must be taken into account, otherwise it is a threat to democracy. No, it is ideas like these that are a threat to democracy. Going by Kejriwal’s contradictory statement, elections are a threat to democracy, considering the number of people who vote against a party that eventually comes into power.Re: “internal threats”, yes, it’s the duty of the government to protect against internal threats. There is no dearth of militancy in Kashmir – Pakistani or Indian. The nature of the conflict in the area and the geography of the land, coupled with the weather and the mostly sparse population, mandates an army presence, as opposed to a police presence. It’s common sense. It’s also an issue of national security. That cannot be decided by referendums. Should we take referendums for Naxalites? For Arunachal Pradesh? For Tamil Nadu coasts? Bhushan also said that he believes Kashmir is an integral part of India (Prashant Bhushan does U-turn on Kashmir) Then why did he make the referendum comment, instead of defending the troops in Kashmir? Bhushan’s exact statement is here: Prashant Bhushan for referendum on Army's J&K deployment Secession is unconstitutional, so should be avoided, he says. So 1. What is the point of the referendum, and 2. Why was it okay when passing the Jan Lokpal was unconstitutional? Kejriwal later states that Bhushan withdrew his comment about the referendum, and asks if people want to kill him or Bhushan for it. Do they want to kill me for Prashant Bhushan's J&K remark? Kejriwal asksAs to why Bhushan should not have made that comment: It is very easy to state that the remark that was made was by an individual and not the entire party. It might be Prashant Bhushan’s personal view, as Kejriwal was quick to clarify. But that is just a statement of convenience. If the view had been endorsed, it would have been a victory for the party. It drew criticisms, so it’s a personal view. Going by this, why was Binny expelled for stating his personal views about the party? It’s also a classic votebank move. Now, if and when AAP campaigns in Kashmir, Bhushan would go. The people would remember his statements (although they do not reflect the party’s) and vote for AAP. Stating that it’s a personal opinion makes it very easy for any member of any party to get away with any controversial statement. Had such a statement been made against more sensitive issues like riots or reservations, the issue would have escalated. Other parties are quick to reprimand their members who make controversial comments, but AAP chooses to field its candidates, with no apology. A party is voted for its idealogy, which is not always explicitly stated. It’s the members of a party that project the kind of ideas and stances parties take on issues. }AAP promises to initiate schemes for labour and against contract workers, as stated in their manifesto. (Delhi govt to initiate schemes for labourers,contract workers)Educationist and Padma Shri recipient, JAK Tareen joins AAP. (Educationist joins AAP)Shoaib Iqbal threatens to withdraw support over Kumar Vishwas’ remarks against minority community.Jan 6: Kejriwal goes on record to say that he would probe Sheila Dixit. (Will probe anyone guilty of graft, even if it is Sheila Dikshit, says Kejriwal) When asked about his expose on the CWG scam in 2010, and why he hasn’t taken action against those involved, he states that there were no names in the report.Rakhi Birla files an FIR stating that her car is attacked with a stone, but she is unhurt. Meanwhile, the police claim that a teenager’s gilli-danda stick hit her car accidentally.800 DJB employees transferred.AAP also announces 90% reservation in institutions fully funded by govt for Delhi students.Jan 7: Arun Jaitley reveals that Prashant Bhushan had previously suggested a referendum for the people of Kashmir, asking them to decide whether they wanted to stay in India or Pakistan. (AAP ideology will weaken India: Jaitley) Bhushan had been physically beaten up by unknown workers for his comments, back in 2011. Both Congress and BJP condemn the attacks, neither claims responsibility.AAP creates an internal committee to protect women within the party. (AAP establishes internal committee based on Vishakha Guidelines)Anti-corruption helpline to be setup in two days, Swaraj bill to be drafted in 10 days. (Anti-graft helpline in 2 days, ‘Swaraj’ Bill in 10)AAP announces that it will convert abandoned buses into shelters for the homeless. 1000 new shelters are announced. (AAP to convert abandoned buses into night shelter homes)AAP workers are beaten by Congress workers at Amethi. Congress defends itself by stating that none of the representatives of AAP were from Amethi. (http://indianexpress.com/article/cities/delhi/anti-graft-helpline-in-2-days-swaraj-bill-in-10/){Edited to include modifications} AAP members allegedly walk into a hospital and set up jhuggis, claiming that since the hospital has a lot of empty land that belongs to the government, they are free to do so. More AAP accuse an NGO of encroaching on a community center that the NGO takes care of, maintains, and pays bill for. Delhi Speaker and AAP member, MS Dhir does not allow discussion on this issue for the day, asking that it be brought up later. (‘Anarchy’ by AAP workers alleged ) Kejriwal promises to look into the issue.Jan 8: AAP office attacked by Hindu Raksha Dal workers.AAP draws flak for misleading the public about 90% reservation as only 12 institutions satisfy the criteria. AAP defends by saying that they plan to construct new colleges, carrying over the previous Congress govt’s plan. The reservation draws more flak as it is seen as regressive to promoting national integration. (No ‘outsiders’ in Delhi)Kejriwal and Somnath Bharti come under fire for illegally calling a meeting of all district judges in Delhi. This is because the judiciary is not under the executive in our constitution. Kejriwal claims that this step was taken to improve the system. A petition is filed against AAP in the Delhi high court. (Under fire, AAP says move to meet judges ‘to better system’)The govt threatens to cancel licenses of discoms who do not allow audits.Noted dancer Mallika Sarabhai joins AAP.Jan 9: AAP announces anti-corruption helpline number that receives almost 4000 calls in the first 7 hours. AAP talks about a rollback in CNG prices for auto drivers. (Govt explores legal options to effect CNG price rollback)Manish Sisodia given government residence. AAP very vehemently opposed VIP culture, but their members still travel in special cars bearing VIP numbers. (Manish Sisodia moves into Mayur Vihar flat) {Edit: AAP had stated they would not be taking up government bungalows, not government residences}Kejriwal urges the common public to undertake sting operations if they have a phone, and use video and audio recording facilities. This sees a huge spike in illegal spy gadget sale across the city. (Have a phone? Go sting the corrupt, CM tells Delhi)Kejriwal gets Z-category security. Senior journalist of Network 18, Ashutosh, quits upon the verge of being let go, and joins AAP.Jan 10: Kejriwal states that after the Lokpal bill is drafted, it would be passed in Feb. He also states that the bill will be passed to the public at Ramlila Maidan and the people’s consent taken. The Jan Lokpal bill provides the Lokayukta powers to tap phones, spy on, and put up surveillance on any member of the public or ministry who is suspected of indulging in corruption. (After telling Delhi to sting, AAP wants Lokpal to snoop)Hey, I think my neighbor, who’s a shop owner, is adulterating his goods. Please tap his phone and set up bugs in his house to spy on him?In a complete violation of the Electricity Act, Kejriwal promises exemption for people who had defaulted on electricity bills and withdrawal of cases against those booked for power theft since March 23 last year. (Kejriwal waives 10-month power bill default and theft, BJP calls it anarchy) This is upto 20,000 connections that bills haven’t been paid for regularly. Simple math gives an estimate of how much this would to cost the tax paying public. Note that this is also a form of anarchy. Encouraging people to break the law, ie, power theft. Tomorrow, if a political party asks people to join them in protest, steal power, and not pay bills, and promise a 75% off, it would be utterly and completely justified and the people would migrate to them.A helpline is announced to report power cuts. A Janta Durbar every day in the future is announced, starting the next day.Jan 11: The first Durbar is overrun with a crowd of 20,000 against an expected 500, prompting the government to cancel all proceedings. A bit of short sightedness there, displayed by Kejriwal. Being the CM of Delhi, he should have realized that more than 500 people would turn up. 500 is a ridiculously low number to expect. His swearing in ceremony at Ramlila Maidan was not that far away. Crowds complain about mismanagement and lack of access to the ministers. (Thousands spoil Arvind Kejriwal’s durbar debut)AAP volunteers attacked in Bangalore.Jan 12: Kumar Vishwas shown black flags in Amethi, due to his allegedly insensitive remarks against Hindus and Shia Muslims. (Kumar Vishwas shown black flags, stones pelted at buses of supporters)After the exemption in power that was promised two days ago, Kejriwal does a U-turn and states that the govt is not sure of this decision. (U-turn on power waiver: CM says no decision yet)Communist and CPI member, Kamal Mitra Chinoy joins AAP. (CPI member Kamal A. Mitra Chenoy joins AAP) (Why I joined AAP and Quit the CPI: Kamal Mitra Chenoy) He's a professor at JNU. He has previously courted controversy for alleged sedition, and for speaking out in defence of Osama Bin Laden, especially on twitter.Jan 13: Opposition slams the excessive power cuts and irregular water supply since AAP’s tariff reduction was announced. (With Bijli Andolan, BJP to protest power cuts)Kejriwal discontinues the idea of Janta Durbar.FDI in retail is withdrawn. AAP defends this action by claiming Delhi needs more jobs. (Claiming Delhi needs jobs, Kejriwal scraps nod to FDI in retail) Water supply is affected, Delhi faces water shortage.UP police force starts providing security to Kejriwal. This is over the Delhi police, who tail him in plainclothes wherever he goes. (After cops in plainclothes, now Z-category security for Kejriwal)Jan 14: Law minister Somnath Bharti is accused of tampering with evidence and influencing witnesses in a case last year, where Bharti’s client was facing corruption charges. (Congress attacks Bharti for questioning CBI judge)AAP member Mallika Sarabhai calls fellow AAP member Kumar Vishwas misogynist, anti-minority, and anti-women. (Kumar Vishwas slammed for comparing Narendra Modi with Lord Shiva)Danish national is gang-raped in Delhi.Jan 15: Congress claims FDI rollback violated the legal process, as it was not discussed in the cabinet and approved by the Assembly. (FDI rollback violates legal process: Cong to AAP govt) Top AAP member and Air Deccan founder, Captain Gopinath criticizes scrapping the FDI, calling the move populist. (Capt. Gopinath calls AAP's FDI move 'populist')Nothing about the rape. Nothing about the water problems.Jan 16: AAP promises that CCTV would be installed in buses after a gang rape of a Danish woman.Kejriwal states that the Jan Lokpal Bill would be ready in two days. (Jan Lokpal bill draft to be ready by Friday: Kejriwal)Kejriwal states that the government is looking into water recycling. (Govt looking at water conservation, recycling to meet needs: Kejriwal)Congress attacks AAP for taking a soft stand on the gangrape. Kejriwal blames the Delhi Police for not executing their duties. (Delhi rape: Congress workers protest before secretariat)Nothing done to improve the water situation, educational systems, sewage systems, or any of the other points in the manifesto yet. No news about the power subsidy. No Mohalla Sabhas. No new toilets or schools built. Nothing in place for rainwater harvesting. No shelters for homeless, no licenses for street vendors.Jan 17: Somnath Bharti acts upon the complaint of residents of Khirki extension regarding a sex and drug racket propagated by people of Ugandan and Nigerian nationalities, and conducts his infamous midnight raid. He gathers a crowd of people, informs the media, and goes to Khirki extension with policemen. When the residents of the house don’t answer the door, seemingly away, he orders policemen to break into a house without a warrant, which they refuse to do. All of this is captured by television cameras that were present at the scene. Bharti allegedly makes racist remarks, and crowds attack Ugandan and Nigerian female students, two of whom emerge out and three, who return home, who are then taken to a hospital to take drug samples and are allegedly forced to urinate in public. Samples come clean. There is no evidence of drug peddling or sex trade among the women attacked by the mob and pulled out by Bharti. (Somnath Bharti`s midnight raid: African woman forced to urinate in public) Rakhi Birla accuses police of shielding members of a family that burned their daughter in law.I have written more about this incident and what I feel about it here: http://www.quora.com/Nishtha-Sood/Posts/Somnaths-mistaken-vigilantism-1/comment/409388 Please note that I do not deny the existence of a racket, I only state that the methods adopted by Bharti are wrong and illegal.AAP puts Vinod Binny on notice.Sisodia threatens to “fix” the police. (Sisodia threatens to 'fix' Delhi police if they fail to act)18 people die of cold wave. Where are those buses that were supposed to be shelters?Ugandan woman complains to the police that she was attacked by a mob when returning home, physically beaten, and the police protected her. (In AAP minister's midnight raid, woman made to urinate in public)Jan 18: Government promises shelters for homeless to prevent deaths due to the cold.Kejriwal threatens to go on a dharna if the four cops involved in the previous night’s raid were not suspended. (Kejriwal to Centre: suspend four cops by Monday 10 am or we go on dharna)Kejriwal also appeals to the public to join him. Bharti is accused of vigilantism and flouting the law, attracts a lot of ire. When Sheila Dixit said she couldn’t take actions against rapists because the police weren’t under her control, AAP stated that she was making excuses and can escalate the matter to the center. Today, they have the same problem, and they choose not to escalate, but instead threaten to shut down the city with a dharna. The Lokpal Bill agenda clearly states that the police should report to the Lokpal/Lokayukta and be independent of ministers and MLAs on the one hand. And on the other, Kejriwal protests to bring the police under the Delhi government.Former Karnataka Lokayukta (yes, Lokayukta) attacks Bharti for his conduct. (Santosh Hegde flays Somnath Bharti's conduct)AAP goes on record to say that it supports Telangana.Kejriwal skips defamation case filed against him. (Arvind Kejriwal skips defamation case, court allows exemption plea)Jan 19: Sisodia states that carrying out sting operations is one of the rights of the people. (The idea exchange: ‘The common man has 2-3 powers… one is vote, second RTI, right to sting is another’)Six people die of cold wave. Them invisible shelters and buses.Somnath Bharti calls members of Congress and BJP ‘pimps’. (Somnath Bharti again: ‘Cong, BJP have pimps’)Ugandan woman lodges FIR against Somnath Bharti, identifying him in news vides as the person who instigated the mob against her. Seven women are deposed in court in connection with the case. One of them asks for a second case against Bharti. Bharti denies all allegations. (Somnath Bharti won't resign as Delhi's Law Minister: AAP) Delhi Police register criminal case against Somnath Bharti.Jan 20: Kejriwal calls for a 10-day dharna to have the five policemen suspended. Homeless people died again? No, these cops are more important. The protest would take place in the most protected zone of Delhi’s region, owing to the upcoming Republic Day parade. Kejriwal urges the public to not come join them, citing the issue of disturbance and safety, saying that the protest would only be undertaken by members of the AAP. However, AAP sends undercover messages to AAP units in Haryana and UP to mobilize crowds. (AAP govt told people to stay away from dharna, but quietly mobilised the crowds)Later in the day, Kejriwal calls out to the public, going back on his word, and join them. He also urges the police to throw away their uniform and join them. This is yet another instance of promoting anarchy. Asking people who are supposed to uphold the law to abandon their duties and join in breaking the law. Who would control the massive crowds, then? As Kejriwal wasn’t allowed to take the protest outside the Home Minister Sushil Kumar Shinde’s office, he launches his protest outside Rail Bhavan. Four metro stations shut down.The protests causes security concerns as the Republic Day parade is scheduled six days hence, with full dress rehearsals in three days. The parade is scheduled to take over the area 72 hours before the Republic Day. The threat of terrorism is high, and classified weaponry and crafts of the Indian military, navy, and airforce are scheduled to be present. Kejriwal dismisses security concerns, stating that there is no point in the Parade as the women in our country are not safe. Kejriwal refuses to take the protest to Jantar Mantar, despite the fact that it is an area of high security that has prohibitory orders on it to allow gatherings of more than 5 people, although he is causing major damages to security. (On Day 2 of Arvind Kejriwal's protest, four metro stations, roads near India Gate closed)I see two problems here. One is that Bharti, his own member, attacked women. Secondly, can a sworn in official talk like this about the Republic day? The parade is a source of major pride to all of us Indians, and is a display of the strength of our defense. It is honoring the military, navy, and airforce if anything. It is a nation-wide event. Kejriwal insulted and demeaned our military, and is now causing lakhs of rupees worth of security concerns (causing tax payer money, how do people not see that?). Instead, he chooses to give precedence to suspension of five cops for carrying out their duty and failing to obey their ministers.The protest turns unruly, with AAP volunteers jumping barricades and getting violent, hurting two policemen with stone pelting. The police is then forced to lathi charge. AAP members call the police brutal.Kejriwal defends Bharti by producing letters written by residents of Khirki extension to Bharti. He also displays a letter written to him from Ugandan High Commission that was allegedly handed to him by a Ugandan official, who encouraged Bharti, supporting his decision to lead a mob.Jan 21: AAP supporter allegedly grabs reporter’s neck and slaps cameraman. Sisodia urges people not to break barricades and become unruly, while Kejrwial is caught on camera encouraging people to break and climb over barricades.Captain Gopinath of AAP condemns the protest stating that the CM should not be sitting in protest. (Blog: Let AAP protest, Chief Minister must govern, writes Captain Gopinath)Supreme Court agrees to hear a PIL against Kejriwal and Bharti for resorting to street fight and agitation. Supreme Court also declares that holding constitutional posts, the AAP cannot agitate against other constitutional entitites. (On Day 2 of protests, Kejriwal threatens to flood Rajpath with AAP supporters - Hindustan Times)Hearing is scheduled for two days hence. If the Court stays the protest, Kejriwal would be forced to move the protest to a different location.Kejriwal makes a controversial statement that he is indeed an anarchist if people call him so.Center appeals to Lieutenant Governor to facilitate Kejriwal calling off the dharna so as to not hamper security and increase losses to the tax payer. LG appeals to Kejriwal, who refuses. LG then sends two of the five police officials on paid leave. Kejriwal terms it ‘people’s victory’ and calls off the dharna.Bharti states that he wants to spit in the faces of Arun Jaitley and Harish Salve. ('Want to spit on faces of Jaitley, Salve': controversial comments by AAP)Manish Sisodia tells an NDTV panelist that they’re asking for lawful protests over the burning of a girl, and to wait till his daughter is burnt.Jan 22: Yogendra Yadav tweets in defence of Kejriwal saying that even Gandhi did not get his original demands when he protested. (AapYogendra: Some felt that we did not get ...) Gandhi was protesting against the British, not his own country's government. And when Gandhi indulged in sedition, he was jailed. Here’s a timeline about his protests and his arrests: SparkNotes: Mohandas Gandhi: TimelineAAP defends the move, stating it was the principle that counted, rather than the results. Wasn’t the principle police reform? The police are still not under the state, the five policemen are still not suspended. Officer who stood up to Bharti is not suspended or sent on leave. A junior cop who is below the cop involved in the gang rape was sent on paid leave. No action against dowry case.(Partial success, but principles more important: Aam Aadmi Party on compromise deal)An FIR against Kejriwal is lodged by the Delhi Police. (Delhi police file case against Arvind Kejriwal's sit-in) Please read the points outlined here. Remember, NDTV is a channel that is still very much pro-AAP even today.Captain Gopinath urges Kejriwal to suspend Somnath Bharti. (Somnath Bharti too should be suspended: Capt Gopinath)CPM party, which has been pro-AAP so far slams Kejriwal for protests. (CPM slams Kejriwal for street protest)Congress workers protest for Bharti’s arrest or suspension. (In Pics: Congress workers' protest to demand Somnath Bharti's arrest)Committee is formed for drafting Jan Lokpal bill. (Jan Lokpal may trigger next faceoff) Finally. It was supposed to have been passed on Dec 29, and then Jan 10.Kumar Vishwas’s earlier tapes where he makes sexist and racist remarks against Keralite nurses comes to attention. He calls them dark and says that’s why people refer to them as ‘sisters’. Multiple FIRs are launched against Vishwas under IPC 499 and 509. (Sexist remarks on Kerala nurses: Kumar Vishwas's effigy burnt) Vishwas defends his actions, saying he was making people laugh, and asks Kerala CM to apologize to him for breaking into the AAP office in Kochi. (Kumar Viswas defends himself, wants Kerala CM to apologise)Kejriwal’s claims about an official who visited him and handed over a letter (previous image) is rubbished by the Ugandan High Commission. Uganda registers an official protest with India, accusing AAP of misusing the letter from a year earlier and lying about their officials. Two of the letters circulated by AAP are clarified by Uganda to be not related to the Bharti incident, and being from the previous year. ( Letters minus full story) African missions in India withdraw support, and Indian foreign office calls an emergency meeting with African envoys to assure safety, as Uganda talks to multiple journalists from India to clarify that the letter wasn’t genuine. (No one visited Somnath Bharti: Uganda HC rubbishes AAP's claims)Jan 23: Vinod Binny of AAP comes out to slam AAP’s governing tactics for not meeting the promises made to teachers in the manifesto about permanent jobs. (Binny shares stage with BJP to slam AAP) Oh yeah, there was something about jobs and stuff like that in the manifesto. Thousands of part-time teachers had canvassed for Kejriwal because of the manifesto objective to convert part-time teachers to full-time teachers. (A move that would have strained the budget). Binny also claimed that those who didn’t pay the bills by responding to Kejriwal’s call to shun the bills now have to pay exorbitant amounts.AAP’s anti-corruption helpline is now terminated due to the increasing amount of calls and the inexistence of a process to manage them. (Anti-corruption hotline goes cold, govt says it needs streamlining)Kumar Vishwas’s videos cracking offensive jokes about Indian tennis player Sania Mirza and her marriage to Pakistani cricketer Shoaib Malik emerge, where he reportedly calls Malik a eunuch.Eight senior govt officials are transferred.Jan 24: Binny meets the police, and requests action against Bharti. (Vinod Kumar Binny meets police commissioner, demands action against Somnath Bharti)AAP justifies its protest by releasing a video of Delhi cops’ brutality at Red Fort on Jan 12, unrelated to Bharti’s raid. Police suspend three officials in the video. (Delhi Police suspends three cops after AAP posts video of alleged police brutality)Supreme Court issues notice to Kejriwal for leading a dharna comprised of thousands of people in the capital when prohibitory orders were in place. (Supreme Court issues notice to Delhi government, Centre over Arvind Kejriwal's protest)AAP’s NRI donations drop by half, as a sign of disillusionment. AAP admits that many of its members are fake. ('Narendra Modi', 'Rahul Gandhi' now Aam Aadmi Party members. Here's how)Narendra Modi, Rahul Gandhi, Brad Pitt, Angelina Jolie, Julia Roberts, Barack Obama, Atal Bihari Vajpayee, Jawaharlal Nehru, and Mohandas Karamchand Gandhi are all members of AAP, apparently.Somnath Bharti skips his court hearing and goes kite flying.Jan 25: Kejriwal does a U-turn in his stance about the media, suddenly complaining that the media is being paid to report negative stories about him. (Arvind Kejriwal at Republic Day eve function: Constitution does not bar CM from protesting)So long as the media lauded him, it was fair and just. Today, when it questions your methods and motives, it becomes a paid vehicle.Somnath Bharti apologizes for accusing reporters of being paid by Narendra Modi. (After accusing reporters of taking money from Narendra Modi, Somnath Bharti apologises)Bharti also apologizes for calling the DCW chief of being an agent of Congress and politically motivated. (Comments on DCW chief: Somnath Bharti apologises)Africans in Khirki extension start moving out. Delhi Court clarifies that a second FIR is not needed against Bharti as the first one is strong enough.AAP releases an alleged video of Ugandan women exchanging drugs. (AAP releases video showing Ugandan women exchanging drugs) Ugandan women who were met by Bharti claim he used racist remarks against them.Kejriwal reports that corruption has come down by 30%, the police have stopped taking bribe, tea sellers have reduced rates. Shazia Ilmi reaffirms this, stating a study undertaken by Transparency International proves corruption is down. ('Transparency International' rebuffs Shazia Ilmi's claims) Transparency International later claim that no such study was undertaken.AAP gives Rs. 1cr to officer who fought against liquor mafia. He says that the Jan Lokpal bill is almost ready, and a female protection committee is to be formed. The same one earlier, about protecting women within the party. This took twenty days.Kejriwal incites anger by breaching protocol before the Republic Day parade by refusing to return the parade commander’s salute and walking off the podium. These people represent true martyrs of our nation, who actually sacrifice their lives on the border. It’s an utmost form of disrespect. Internal troubles are internal troubles. The military isn’t involved in any of this.Jan 26: Bharti goes on record to say that he wasn’t aware of the procedures regarding the midnight raid he conducted. (AAP's midnight raid: Was not aware of procedures, says Somnath Bharti) I find it hard to believe that the law minister wasn’t aware of the law. Even so, shouldn’t Kejriwal have been fair then, and apologized? Or have Bharti suspended since he wanted those dutiful policemen suspended too? Imagine another politician who conducts a raid on someone without proof, and the police doesn’t act because they are protecting the citizen’s and foreign nationals’ civil rights. The politician then goes on dharna to say that the police officers should be suspended because they didn’t listen to him, and should come under him. Citizens’ letters don’t constitute proof. If Bharti had wanted, he could have obtained a warrant and gone, or escalated the issue to the center, or have brought it to the media’s attention.AAP lives up to its name and has an aam aadmi, a rickshaw driver, inaugurate an upgraded hospital. (AAP in power: “Aam aadmi”, a rickshaw-puller inaugurates hospital)President Pranab Mukherjee calls AAP ‘populist’ and ‘anarchist’ indirectly. (Populist anarchy cannot substitute governance: President Pranab Mukherjee) Kejriwal retorts, stating that the Presidet must have referred to Congress.Jan 27: AAP expels rebel leader Vinod Kumar Binny. (Vinod Kumar Binny pulls a fast one: AAP leader ends hunger strike within hours, gives more time to Kejriwal govt) Binny goes on record to say that AAP is planning a fall of government to “escape from duties”. (AAP wants govt to fall, says Binny after being expelled from the party)AAP reverses its move for increasing working hours for teachers, reverting to the old system. (Delhi government announces rollback of its move on working hours for teachers)Jan 28: Manish Sisodia states that 200 new schools will be created within one year, and will awarded tenders in 15 days. (30 days of AAP governance: 4 of 18 targets on manifesto checklist ticked)Kejriwal retweets a tweet by musician Vishal Dadlani, an AAP supporter. VishalDadlani: Stuck between a moron and a ... The tweet refers to Narendra Modi as a murderer and Rahul Gandhi as a madman. Yet another major misstep. Prejudices should be kept aside when you’re an elected representative. As someone who holds the post of a state’s CM, Kejriwal should have been more politically aware and not short sighted. Extremely insensitive, lacking dignity and respect.Yogendra Yadav holds a Google hangout to raise funds, Rs. 18 lakhs raised.Jan 29: DCW chief files complaint against AAP for harassing her for summoning Bharti. (AAP government harassing me for summoning Law Minster Somnath Bharti: DCW chief Barkha Singh)Kejriwal refuses to share details of funding and expenses incurred during his swearing in ceremony with the court. A PIL has been filed against him for illegally accepting NRI funding after flouting rules. (AAP has not given funding info to us, says Centre in court)A Delhi NGO invokes RTI to ask for details on AAP’s expenditure during Kejriwal’s swearing in ceremony, which is refused by AAP.Jan 30: After the now infamous interview of Rahul Gandhi by Arnab Goswami, where Rahul Gandhi conceded that some members of Congress were involved in the 1984 riots, AAP orders a special committee formed to probe into the riots. (Let SIT probe ’84 riots cases, govt tells L-G) There have been 9 panels set up to probe the case in the past. Whatever happened to the CWG scam? It’s more recent and all the evidence is sitting right under AAP’s nose.Kejriwal and Barkha Singh of DCW have a faceoff.AAP courts controversy again when Kejriwal states in Haryana that Khap Panchayats should be encouraged and are a part of the culture. Khap Panchayats are unelected bodies, known for their honor killings, and are branded by the Indian Legislative body as illegal and unconstitutional entities. (Arvind Kejriwal says ban on khap panchayats not needed) The gangrape of a 20 year old by 13 men was ordered by a Khap Panchayat. (West Bengal gang-rape, allegedly ordered by village council, stuns Supreme Court)Nido Taniam is killed in a racist attack by the Delhi public and police. Why no dharna now? Kejriwal is silent on the issue.Jan 31: Kejriwal threatens to revoke licenses of discomms if they fail to provide uninterrupted power. Who will provide electricity then? Discomms claim that they are short on funds and cannot pay public sector generation units for power supplies. (Public sector, mind you. Not Ambanis.) AAP leader Gopal Rai accuses discomms of being politically motivated as they didn’t complain of shortage of funds previously. Yes, because people were paying bills. (Will cancel licence if you fail to provide power: AAP warns Discoms) The NTPC, to whom the discomms pay bills, come out to state that power supply to discomms would be terminated if funds are not met. NTPC is a national body. (NTPC rejects AAP's plea, Delhi heads to massive power outage) So, you pay only 50% of the bill, you get only 50% of the power. Seems like a fair deal. Isn’t the government supposed to be providing the rest of the subsidy? What happened to that? Multiple areas in Delhi face 8 to 10 hours of power cut each day.Kejriwal names corrupt leaders in press meet. List does not contain Sheila Dixit. (Long time, no meet!) (AAP executive meet: Points to note)This decision was seen as a strategy by Kejriwal to force Congress into withdrawing support so that AAP falls. Congress reiterates that it will continue supporting AAP. In a bold move, BJP states that if Congress withdraws support, BJP will provide support.AAP member declares that they do not endorse Nido Taniam’s death and the police would be probed. (Student from Arunachal Pradesh beaten to Death in New Delhi)Feb 1: Nitin Gadkari threatens to sue AAP for defamation. (Gadkari threatens to sue Kejriwal for defamation)Kejriwals alleges blackmail when NTPC warns of blackouts. (Arvind Kejriwal alleges blackmail as power firm warns of huge blackouts)AAP founding member, Madhu Bhaduri quits, cites reason as never being allowed to speak in party meetings against Somnath Bharti, and AAP’s views about and behavior towards women. (Khirki raid fallout: AAP's founder member Madhu Bhaduri to resign from 3 committees - Hindustan Times)Delhi Electricity Regulatory Commission allows 6 to 8% hike. Delhi Govt condemns it. BJP starts protest against power tariff hike.No statement by Kejriwal on Nido Taniam’s death.Feb 2: AAP states they will list out a list of corrupt politicians by state.Kejriwal asks for power licences to be canceled for two discomms. (In escalating conflict, Arvind Kejriwal asks for power firms' licenses to be cancelled)Information is unearthed that Somnath Bharti was a former unethical spammer. (Delhi law minister Somnath Bharti was once unethical spammer the link has a lot of details about his website’s service and hosting and records) He is the former owner of Magden Solutions. The Spamhaus Project accused him of spamming on behalf of TopSites LLC, naming him in Register of Known Spam Operations (ROKSO) as one of the top spam operators in the world.( Page on spamevidence.com) PCQuest found that he had been sued in a California Superior Courtfor spamming by Daniel Balsam. Balsam's attorney revealed that in 2004, Bharti and two others had paid Balsam in damages apart from making a court declaration agreeing to use only confirmed opt-in e-mail addresses when sending commercial e-mails. Bharti claims that he chose to settle because defending the case in the United States would have been costlier for him. Bharti also claimed that he was in touch with SpamHaus, but the SpamHaus CEO, Steve Linford went on record to deny. (Top spammer? - PCQuest) SomnathBharti also sold porn domains. (How is Somnath Bharti connected to porn?)Feb 3: Madhu Bhaduri further exposes AAP’s internal policies and functioning. States that AAP doesn’t treat women as humans. She also states that the party has compromised its principles for votes. ('AAP doesn't treat women as humans,' says founder member Madhu Bhaduri as she quits) She publishes a written article about AAP and her reason for resignation. (A voice of dissent is drowned by the AAP high command | Latest News & Updates at DNAIndia.com)AAP alleges that Arun Jaitley and Narendra Modi are conspiring against the party.An AAP member, Madan Lal claims he was offered Rs. 20 cr to split AAP before the election results. He also alleged that Arun Jaitley had tried to contact him via phone but he didn’t respond. (Delhi: BJP protests outside AAP MLA Madan Lal's house) BJP has rubbished the claims.Chaired by Kejriwal, Delhi Cabinet approves the Jan Lokpal bill, details of which are not revealed to the public. Some points have been outlined. (Delhi cabinet approves Jan Lokpal Bill)‘Pol Khol Abhiyaan’ announced to be started the next day. (AAP to launch 'pol khol' to expose BJP, 'Congress conspiracy' | Latest News & Updates at DNAIndia.com)Kejriwal states that the Swaraj Bill is drafted. (Draft ready: AAP set to table Swaraj Bill)Feb 4: Kejriwal writes to the President to probe into CWG and take action against Sheila Dixit. (Meanwhile, Kejriwal asks President to act against Sheila) Why aren’t they doing it themselves?A day after Rahul Gandhi visits protesters from NE, Kejriwal joins the protest, apologizing for joining four days late. He announces measures to meet the demands of the protesters, one of which is the inclusion of NE history in textbooks. (Nido Taniam's death: After Rahul Gandhi, Arvind Kejriwal joins protesters)Manish Sisodia makes a surprise visit to a school and finds the principal and teachers do not come on time. He declares that parents should be given powers to suspend teachers. (Parents should be able to suspend teachers: Manish Sisodia)Prashant Bhushan holds a press conference to name Karunadhi and Kanimozhi as beneficiaries of 2G scam. AAP claims to possess leaked audio tapes. Bhushan states he would upload the audio tapes. (AAP comes out with fresh charges against Karunanidhi, Kanimozhi, World , Aninews)Three women from the Ugandan community come forward saying that they were promised jobs in India, but were instead forced into sex and drug trafficking. DWC asks for more patrolling in Khirki area. (Delhi Women Commission wants patrolling intensified in Khirki)AAP states that their next agenda is targeting Narendra Modi.Feb 5: TV channel Headlines decides to investigate AAP’s claims that police do not accept bribes and invoke AAP’s statement on rights to conduct sting operations. A sting operation on Delhi police reveals more than four policemen who demand and accept bribes. (Sting operation exposes rot of corruption in Delhi Police)AAP reportedly finalizing a Lokayukta bill (not Jan Lokpal) (AAP government finalising Lokayukta Bill: Top 10 provisions)Delhi High Court seeks Centre’s assistance in hearing a plea to register a case of cheating against Kejriwal, Sisodia, and Bhushan for misleading the public with false promises under Section 420 of IPC.It emerges that Kejriwal had in fact requested for the duplex bungalows for himself as soon as coming into power in a letter to the LG.(Delhi CM Arvind Kejriwal had requested for Bhagwan Das road accommodation)Feb 6: AAP files FIR into CWG scam. The inquiry is closed immediately at the initial stage, although Bhushan alleges that there have been “strong findings”. The move is speculated to be another step in the tactical suicide, hoping to force Congress to withdraw support. Congress continues to support AAP. (After Delhi govt’s order, ACB files FIR in Rs 90-crore CWG street light scam)Solicitor General Mohan Parasaran writes to Lieutenant Governor Najeeb Jung, deeming the bill ‘unconstitutional’. LG writes back, seeking counselon two counts: whether presenting the Bill in the Assembly “without sending the legislative proposal to the Central government” — as Arvind Kejriwal’s government has sought to do — violates the constitution; and whether the Delhi government has the power to legislate on matters concerning the Delhi Police and the Delhi Development Authority. (Setback for AAP govt, Solicitor General rules: Lokpal needs Centre OK) Former Army Chief General VK Singh criticizes Kejriwal for taking to the streets. (Taking to streets won't solve people's problems: Gen V K Singh)Feb 7: Sol. Gen. Parasaran states that the bill can be passed only if approved by Center and recommended by the LG and assented by the President. This is because the bill is a financial bill which draws funds from the Center. To support his opinion, the Solicitor General has relied on provisions in the Government of National Capital Territory of Delhi Act, 1991. Since the Jan Lokpal Bill’s provisions will overlap with those in the Lokpal and Lokayuktas Act, 2013, Parasaran suggests the law can never come into force without the President’s assent. Also, Article 239AA of the constitution stipulates that the Delhi government cannot make laws with respect to the police, unless it is approved by the President. Parasaran has not been provided a copy of the bill by AAP, flouting protocol. AAP states that it will push the bill without the approval from Center. (Setback for AAP govt, Solicitor General rules: Lokpal needs Centre OK)In short, AAP wants funds from the Central government to be used in a manner that is not even disclosed, but it does not want to seek approval from the Center. AAP also seeks to pass the bill in a manner that clearly violates the Constitution. Yet another step in the strategy to make sure that the AAP govt is dissolved.This answer outlines the legal procedure and implications: User-12487416925627785344's answer to What is wrong with how the Jan Lokpal Bill was presented by the AAP Government in the Delhi Assembly on 14 February 2014?. The bottom line is that the bill needs LG’s recommendation to the President and the President’s approval before it can be tabled in the assembly. BJP goes on record to state that they support the bill, but only if introduced in the proper manner.AAP alleges that the LG is an agent of Congress and is trying to malign the image of the party. (AAP hits out at Lt Gov over ‘leak’ on Jan Lokpal bill issue, calls him a ‘Congress agent’)Auto drivers of Delhi accuse Kejriwal of cheating them and stating that their needs are being ignored by the government. (Arvind Kejriwal beats hasty retreat as angry auto-drivers shout slogans) Kejriwal had previously taken away from Delhi Police the power to fine autorickshaws drivers who refuse to carry passengers. (A move bound to please his party's biggest vote bank but the one that put the commuters at a disadvantage.)RIL takes discomms to court, Kejriwal warned prepare Delhi Govt for an ‘ugly situation’ that could develop and ensure that power is supplied to the public. (Reliance discoms take NTPC to Supreme Court)Kejriwal meets the German President. (Kejriwal meets German President, discusses Jan Lokpal, elections)Feb 8: RK Pachauri, director general of The Energy and Resources Institute explains the economics of why Kejriwal’s plan to slash power tariff and provide free water is actually causing more problems and energy waste, leading to financial loss. (AAP's free water policy may end up in lot of wastage: RK Pachauri)Kejriwal writes a strongly worded letter to the LG, asking him to uphold the constitution. Ironically. (Kejriwal reminds L-G of oath to Constitution, forgets his own)Feb 9: Kejriwal says he would contest LS if needed, but first commitment is towards Delhi. (I would contest Lok Sabha polls if need arises, but my first commitment is to Delhi: Arvind Kejriwal)He also announces on the same day that he would resign if Jan Lokpal Bill is not passed. I find that rather contradictory to his previous statement.Feb 10: Rambeer Shokeen announces that he withdraws support to AAP because water and power problems have not been addressed. Shokeen alleges that Kejriwal does not respond to his calls. (Independent legislator to withdraw support to AAP government | Latest News & Updates at DNAIndia.com)Power and water problems have increased due to the subsidy that was promised.Kejriwal meets the LG to discuss issues with the bill. LG then referred the bill to the Law Ministry for a final opinion.Congress goes on record to state that they support the bill in its entirety, provided it is introduced in a constitutional manner. (Won’t allow Jan Lokpal Bill to be tabled in Assembly: Cong)Manish Sisodia threatens to cut funding to colleges if members of AAP are not included in the staff. (AAP’s new front: Battle with DU over college bodies) A letter written by teachers at DU states that AAP is engaging in art-twisting tactics to get a hold in the university. 4,000 teachers wait for permanent employment, and that AAP has ordered priority of their own members over existing teachers. A backtrack on their words from the manifesto.Prashant Bhushan is caught in the midst of controversy over 15 acres of land he owns in Himachal Pradesh. HP Vigilance Bureau claims Bhushan’s institute was allotted the land for constructing educational institutions, and are in violation of the law as the building in the land is not affiliated with any education board. Bhushan retaliates, saying that the red-flagging is politically motivated because he complained against Virbhadra Singh. (Top AAP leader Prashant Bhushan in land row) (Himachal Pradesh govt may confiscate AAP leader Prashant Bhushan's Kangra land)Feb 11: Kejriwal orders FIR against Reliance’s Mukesh Ambani, Veerappa Moily, and Milind Deora for fudging numbers in natural gas after holding a press conference. Legal experts challenge the authority of the Delhi Govt to file an FIR in the national matter, but Kejriwal and Sisodia field their decision saying that since the act was committed in Delhi, it falls under their jurisdiction. Experts also question the validity of the criminal FIR against Ambani as there already is a civil suit against Ambani for the same offence, registered by the same people, that is pending. (Gas price FIR: RIL weighs legal options; may file defamation suit against Kejriwal)BBC reveals in London after a sting operation that members of the UK arm of AAP are involved in student visa fraud. (`AAP UK workers embroiled in student visa scam`)Feb 12: The Law Ministry upholds LG’s stance that the Centre’s approval is needed for introducing the bill. Congress and BJP reiterate that they support the bill in its entirety, provided it is introduced in manner that does not violate the Constitution. A man with a government less than two months old cannot and should not be allowed to pass a bill in the assembly without following the rules. Not only is it unconstitutional and illegal, it doesn’t make any sense. Exactly how much of a track record does he have as a successful politician for the assembly to even consider it?High court asks Kejriwal to justify use of a public stadium for anti-graft Lokpal Bill.Kejriwal modifies the Jan Lokpal Bill a day before introducing in the assembly to state that people found indulging in corruption will not be punishable by the Lokpal. (In climbdown, Arvind Kejriwal's Jan Lokpal can no longer punish corrupt officials)Why has nobody raised this issue? This effectively means that Lokpal would declare someone as guilty, and then pass it on to the court. Which would leave the execution again to the police. What is the whole point of the bill then?Feb 13: LG writes to the Speaker, saying that the bill cannot be tabled as it has not followed the proper procedure for introduction under Transaction of Business Rules, 2002. (Jan Lokpal Bill can't be tabled, says Delhi L-G)Bill draws criticisms from Kejriwal’s fellow Magsaysay award winner, Aruna Roy, writer Arundhati Roy, former Chief Justice of Supreme Court, the Director of CBI, with the President of Center for Policy Research, Pratap Bhanu Mehta, terming it “premised on an institutional imagination that is at best naïve; at worst subversive of representative democracy”. (Of the few, by the few) (Break lokpal into 5 institutions: Roy - Hindustan Times)Despite the Law Ministry’s ruling and the LG’s stance, Kejriwal attempts to table the bill in the assembly. The assembly is repeatedly disturbed by the opposition.Speaker MS Dhir of AAP attempts to introduce the bill, but is met with aggressive opposition by members who gather around his seat.Both the Speaker and Kejriwal walk out of the Assembly, and the assembly is adjourned.Feb 14: Introducing the bill is put to vote, with 42 members voting against the introduction of bill and 27 MLAs voting for it.Kejriwal resigns.Now, Kejriwal has iterated and reiterated that he will do “whatever it takes” to pass the Jan Lokpal Bill. (Will go to any extent for Jan Lokpal Bill: Arvind Kejriwal) So, why did he not adopt the simple solution of following the official procedure? Both BJP and Congress stated their support. Failing to introduce the bill after it is approved by the LG would only make Kejriwal’s claims that the Opposition is opposed to the bill that much stronger. Why did he not go through the proper channels? Is that what he means by whatever it takes? Is this the spirit with which to run a government? Quit the instant one thing doesn’t work out, when you’ve planned 17 other things?AAP reiterates that the Centre should consider former Attorney General, Soli Sorabjee’s views on Home Ministry 2002 order, where he states that it is an attempt to compartmentalize Delhi Govt. (L-G should consider Soli Sorabjee’s view on 2002 order: AAP)Just before resignation, AAP sends out mass text messages in Delhi, urging people to come out to the party’s office. (Before Arvind Kejriwal resigned, mass SMS brought crowd of supporters at AAP office)Here are some points from his resignation speech: They think they are 'angrez', Lieutenant Governor the viceroy: Arvind Kejriwal's top 10 quotesI would sit here and refute every one of them, but I’m not going to bother.Since resignation three days ago:Former Attorney General, Soli Sorabjee, defends the LG and criticizes Kejriwal for not following rules and repeatedly bringing up Sorabjee’s name for defense. (Former Attorney General Soli Sorabjee backs Lt Governor Najeeb Jung's decision)Man who threw a shoe at P Chidambaram is now an AAP member and will contest LS polls. (AAP fields man who hurled shoe at P Chidambaram for Lok Sabha polls)Kejriwal appears for multiple interviews. States that since the Lokpal bill wasn’t passed, he saw no sense in continuing. (Since Jan Lokpal was blocked, saw no sense in continuing as Chief Minister, says Arvind Kejriwal: highlights)Of course, other points of the manifesto don’t hold a candle to the Lokpal Bill.He also states that he had inside information that Congress and BJP will allow the bill to pass, but after his filing an FIR on Mukesh Ambani, they would not allow it.AAP releases list of first 20 candidates for LS polls.Today, he was again on TV at CII. The point is, they’re still in the news every hour of every day, and for mostly the wrong reasons. When it’s a slow news day, they seem to have strategized press conferences. It’s a brilliant tactic, fully utilizing the “bad publicity is also good publicity” idea and constantly remaining in the public eye.What did AAP do these 49 days?Revoked FDI in retail, causing investment losses; introduced a water tariff cut that was extremely arbitrary as there are still no means to measure water supply and consumption, and not enough connectivity to provide free water to poor people; cut the electricity bill by 50% at the cost of Rs. 61 crore to the exchequer; take to the streets to protest against five cops and to get them suspended, only to call off the protest when two of them are sent on paid leave, causing thousands of rupees worth of damages to the Delhi public; attempt to table a Jan Lokpal bill unconstitutionally, that superseded the bill at the center; resign.The bigger picture here is that the whole situation was a win-win for Kejriwal. If he stays in power, well, he stays in power. If he resigns, he’ll be seen as a martyr who had to forego his Chief Ministership because the opposition did not allow anti-corruption reforms. Every action Kejriwal took was backed by the proclamation that he was fighting corruption. One cannot fight illegal problems by creating new illegal problems. But since it went against establishment and the established government at the Centre is corrupt, Kejriwal is going to be touted as a hero. This is exactly what has happened, and nothing could be farther from the truth. A simple look at the condition Delhi is in right now will tell. A simpler look at AAP’s 18 point manifesto is even more telling.What are the implications of his resignation? Here’s a sample:In a classic case of votebank politics, AAP declared a fee waiver of 50% to all members of the Delhi Public who support the AAP in agitation. On the day that Kejriwal resigned, he also piloted the appropriation bill (in the proper manner, might I add) to designate Rs. 372 crores towards subsidy for power companies. This sum was drawn from a consolidated fund from the Infrastructure and PWD budget allocation for Delhi. Now, he also has to subsidize the Rs. 6 crore loss caused due to the 50% tariff on the public. Since the specific relief to defaulters was not a part of the original manifesto, AAP has not worked out where the 6 crores are to come from. Now, the discomms are at a loss as to how to recover their share of the subsidy. Delhi is to expect power outages. (AAP ki sarkar's bonanza for power defaulters a hogwash? - The Times of India)Similarly, Delhi does not have water. There is water shortage, and there is an artificial water shortage created by the tanker mafia. Kejriwal promised water to all in his election manifesto, but settled for a certain amount for free water for every house that has a connection. Herein lies the problem. Not every house has a connection! Like I said before, only 65% of the population has water connections. 7 lakh households are not linked to the water grid. This means that people who have water already are going to get surplus water, and the ones who need the water are still in the same situation as before. Now, the “free” water isn’t technically free. It costs money to deliver and supply the water, and money is needed for the human labor and physical infrastructure. Where is the money going to come from? Tax, of course. Everyone pays taxes. But the poor (who do not have water) are now going to end up paying for the excess water the rich get. Economist Surjit Bhalla points out here (Not so aam aadmi policy), at 670 litres per household per day, the AAP government is basically giving every individual the right to consume around 170 litres of water a day free. This is much higher than developed countries like UK or USA. AAP’s decision to charge consumers for the entire amount consumed should they go even one litre above 670 a month will only encourage the manipulation of water meters on a gigantic scale, rather than rationalise consumption. It’s easy to look at this short sightedness and proclaim initial victory because most of Delhi might be (or might not be, I’m not sure, are you all?) getting free water. But this populist decision will hit and hit hard. AAP is wasting away the Rs. 446 crore profit made by the DJB, instead of utilizing it to improve infrastructure so as to provide water to all households, 24x7. Make no mistake, this decision was regressive, and if implemented, might just drag the Delhi govt into bankruptcy. Kejriwal’s plans have created problems, not solutions. (A better articulated piece is here: Page on firstpost.com) Here’s a completely simple article that states exactly what the problem is: Asit K Biswas & Cecilia Tortajada: Delhi's water supply - Going, going, gone?The Lokpal bill is the easiest argument of Kejriwal’s to refute, because you do not need any understanding of civics or economics to see the problem here.Why did Kejriwal quit?Because the Jan Lokpal bill was not passed.So?He said that he would quit if the Lokpal Bill was not passed, and he did. What’s wrong in that?A zillion things. Firstly he said that only on the 9th( he quit on the 14th). And saying that he will quit does not justify his quitting. Any government can now take a stance, saying that they would quit if a condition of theirs isn’t met. Let it be a condition built on the core principle of a party, it does not justify the quitting. If Kejriwal felt the parties were not cooperating in passing the bill, he should have gone to the LG and gotten it approved and passed it. If he didn’t want to do that, he could have amended the existing Lokpal bill of the Centre and implemented the Jan Lokpal, like so many other states have done. Remember, he said that he would go to any extent and do whatever it takes to get the Jan Lokpal passed. Well, it’s not passed. If he didn’t want to pass it, he could have let the situation be, used Congress and BJP as an excuse, and focused on other problems, like power and water. As an elected representative, he owed this to the public. He promised to quit if the bill isn’t passed, fair enough. He also promised to implement a lot of other things when he came to power. Where are those things now? How is the public even accepting his resignation as a sign of integrity when it’s nothing but running away from responsibilities? Is the public of Delhi so easily fooled and so short sighted that they accept a “because I said so” argument from a person they themselves elected? Bear no doubt, it was a brilliant political move by Kejriwal, for the party’s benefit. But it’s the public that is going to suffer.What’s the plan for Delhi now?Nobody has any idea. It is under the President’s rule, for now. But we don’t know if Delhi is going to get free water and power. We don’t know when the reelections are and who would win. AAP is now focusing on LS, so Kejriwal is out of running for the Chief Minister’s post again.Manish Sisodia is to be the CM candidate, while Kejriwal aims for Lok Sabha elections. (Good luck, Delhi!)AAP was a shining beacon of hope, full of opportunities. Powerful people like Kiran Bedi and even populists like Chetan Bhagat (sorry CB!) were very prominent supporters of AAP, and are now disillusioned with their politics. As are ordinary people like myself and many others who voted the party into power.Now what happens to the water supply? Are people going to get free water still? What about electricity? AAP is now putting its full effort in contesting the Lok Sabha elections, so what happens to the Jan Lokpal? Where are the educational reforms that were promised? What happened to converting buses to homes for the poor? Did anyone compensate the families of those who died in the streets? Did AAP compensate the families of military men, as promised? A government’s first duty is towards the people. What did AAP do for the people, and I’m talking majority of the people? Ban red beacons? How long is it going to take for them to come back? Where is the sewage plan, the waste management plant, the rainwater harvesting plan? Where are the new schools and colleges? What happens to the 90% reservation? What happened to making Urdu the second language? What happened to the 25 people who died because of the cold when Kejriwal was sitting in his dharna? What happens now to the foreign investment losses due to the sudden recall of FDI? And most importantly, why did Kejriwal not order probe into the CWG scam that took place under Sheila Dixit as soon as he assumed office?Is this the man our country deserves as a Prime Minister? Someone who can’t fulfill basic promises or expend the money in his possession in a progressive manner? Someone who is elected, but quits in less than 50 days without making a single progressive reform?While I know that there are thousands of supporters of AAP, and even here on Quora, I have to say, Delhi has lost a hard won battle, thwarted of its gifts by false promises. Kejriwal obtained the trust and votes of the Delhi public, but in all appearances, when he realized he could not manage the government, he bolted. I’d say he betrayed their trust. And I was one of the people who had high hopes for them, mind you. I’ll clarify that. I wanted them to come to power and to take on an anti corruption and developmental role.Congress and BJP are distasteful because they fool the millions of illiterates and uneducated people by buying their votes and making promises just before the elections. AAP is dangerous because they fool the educated public with their tactics and clever concealment of the full picture.I sincerely hope there is a reelection, and AAP wins again. They must clean up their mess.Note: I know this would invite a lot of comments and disagreement. I kindly request posters to stick to BNBR. Since I have tried very hard to not bring up Congress or BJP or any other political party as a comparison in this answer, please try to refrain from doing so unless necessary. If your retaliation is “But Congress did it and ten years ago, BJP also did it,” your point is moot, as you’re resorting to the exact argument used by Congress and BJP representatives, and are no different from them. And please, do not downvote comments you do not agree with, as has happened in other answers.

What is a Non-Banking Financial Company (NBFC)?A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).2. What does conducting financial activity as “principal business” mean?Financial activity as principal business is when a company’s financial assets constitute more than 50 per cent of the total assets and income from financial assets constitute more than 50 per cent of the gross income. A company which fulfils both these criteria will be registered as NBFC by RBI. The term 'principal business' is not defined by the Reserve Bank of India Act. The Reserve Bank has defined it so as to ensure that only companies predominantly engaged in financial activity get registered with it and are regulated and supervised by it. Hence if there are companies engaged in agricultural operations, industrial activity, purchase and sale of goods, providing services or purchase, sale or construction of immovable property as their principal business and are doing some financial business in a small way, they will not be regulated by the Reserve Bank. Interestingly, this test is popularly known as 50-50 test and is applied to determine whether or not a company is into financial business.3. NBFCs are doing functions similar to banks. What is difference between banks & NBFCs?NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below:i. NBFC cannot accept demand deposits;ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.4. Is it necessary that every NBFC should be registered with RBI?In terms of Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can commence or carry on business of a non-banking financial institution without a) obtaining a certificate of registration from the Bank and without having a Net Owned Funds of ₹ 25 lakhs (₹ Two crore since April 1999). However, in terms of the powers given to the Bank, to obviate dual regulation, certain categories of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, Nidhi companies as notified under Section 620A of the Companies Act, 1956, Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982,Housing Finance Companies regulated by National Housing Bank, Stock Exchange or a Mutual Benefit company.5. What are the requirements for registration with RBI?A company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution as defined under Section 45 I(a) of the RBI Act, 1934 should comply with the following:i. it should be a company registered under Section 3 of the companies Act, 1956ii. It should have a minimum net owned fund of ₹ 200 lakh. (The minimum net owned fund (NOF) required for specialized NBFCs like NBFC-MFIs, NBFC-Factors, CICs is indicated separately in the FAQs on specialized NBFCs)6. What is the procedure for application to the Reserve Bank for Registration?The applicant company is required to apply online and submit a physical copy of the application along with the necessary documents to the Regional Office of the Reserve Bank of India. The application can be submitted online by accessing RBI’s secured website https://cosmos.rbi.org.in . At this stage, the applicant company will not need to log on to the COSMOS application and hence user ids are not required. The company can click on “CLICK” for Company Registration on the login page of the COSMOS Application. A window showing the Excel application form available for download would be displayed. The company can then download suitable application form (i.e. NBFC or SC/RC) from the above website, key in the data and upload the application form. The company may note to indicate the correct name of the Regional Office in the field “C-8” of the “Annex-I dentification Particulars” in the Excel application form. The company would then get a Company Application Reference Number for the CoR application filed on-line. Thereafter, the company has to submit the hard copy of the application form (indicating the online Company Application Reference Number, along with the supporting documents, to the concerned Regional Office. The company can then check the status of the application from the above mentioned secure address, by keying in the acknowledgement number.7. What are the essential documents required to be submitted along with the application form to the Regional Office of the Reserve Bank?The application form and an indicative checklist of the documents required to be submitted along with the application is available at www.rbi.org.in → Site Map → NBFC List → Forms/ Returns.8. What are systemically important NBFCs?NBFCs whose asset size is of ₹ 500 cr or more as per last audited balance sheet are considered as systemically important NBFCs. The rationale for such classification is that the activities of such NBFCs will have a bearing on the financial stability of the overall economy.B. Entities Regulated by RBI and applicable regulations9. Does the Reserve Bank regulate all financial companies?No. Housing Finance Companies, Merchant Banking Companies, Stock Exchanges, Companies engaged in the business of stock-broking/sub-broking, Venture Capital Fund Companies, Nidhi Companies, Insurance companies and Chit Fund Companies are NBFCs but they have been exempted from the requirement of registration under Section 45-IA of the RBI Act, 1934 subject to certain conditions.Housing Finance Companies are regulated by National Housing Bank, Merchant Banker/Venture Capital Fund Company/stock-exchanges/stock brokers/sub-brokers are regulated by Securities and Exchange Board of India, and Insurance companies are regulated by Insurance Regulatory and Development Authority. Similarly, Chit Fund Companies are regulated by the respective State Governments and Nidhi Companies are regulated by Ministry of Corporate Affairs, Government of India. Companies that do financial business but are regulated by other regulators are given specific exemption by the Reserve Bank from its regulatory requirements for avoiding duality of regulation.It may also be mentioned that Mortgage Guarantee Companies have been notified as Non-Banking Financial Companies under Section 45 I(f)(iii) of the RBI Act, 1934. Core Investment Companies with asset size of less than ₹ 100 crore, and those with asset size of ₹ 100 crore and above but not accessing public funds are exempted from registration with the RBI.10. What are the different types/categories of NBFCs registered with RBI?NBFCs are categorized a) in terms of the type of liabilities into Deposit and Non-Deposit accepting NBFCs, b) non deposit taking NBFCs by their size into systemically important and other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and c) by the kind of activity they conduct. Within this broad categorization the different types of NBFCs are as follows:I. Asset Finance Company (AFC) : An AFC is a company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines. Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.II. Investment Company (IC) : IC means any company which is a financial institution carrying on as its principal business the acquisition of securities,III. Loan Company (LC): LC means any company which is a financial institution carrying on as its principal business the providing of finance whether by making loans or advances or otherwise for any activity other than its own but does not include an Asset Finance Company.IV. Infrastructure Finance Company (IFC): IFC is a non-banking finance company a) which deploys at least 75 per cent of its total assets in infrastructure loans, b) has a minimum Net Owned Funds of ₹ 300 crore, c) has a minimum credit rating of ‘A ‘or equivalent d) and a CRAR of 15%.V. Systemically Important Core Investment Company (CIC-ND-SI): CIC-ND-SI is an NBFC carrying on the business of acquisition of shares and securities which satisfies the following conditions:-(a) it holds not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, debt or loans in group companies;(b) its investments in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its Total Assets;(c) it does not trade in its investments in shares, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment;(d) it does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the RBI act, 1934 except investment in bank deposits, money market instruments, government securities, loans to and investments in debt issuances of group companies or guarantees issued on behalf of group companies.(e) Its asset size is ₹ 100 crore or above and(f) It accepts public fundsVI. Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC) : IDF-NBFC is a company registered as NBFC to facilitate the flow of long term debt into infrastructure projects. IDF-NBFC raise resources through issue of Rupee or Dollar denominated bonds of minimum 5 year maturity. Only Infrastructure Finance Companies (IFC) can sponsor IDF-NBFCs.VII. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI): NBFC-MFI is a non-deposit taking NBFC having not less than 85% of its assets in the nature of qualifying assets which satisfy the following criteria:a. loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding ₹ 1,00,000 or urban and semi-urban household income not exceeding ₹ 1,60,000;b. loan amount does not exceed ₹ 50,000 in the first cycle and ₹ 1,00,000 in subsequent cycles;c. total indebtedness of the borrower does not exceed ₹ 1,00,000;d. tenure of the loan not to be less than 24 months for loan amount in excess of ₹ 15,000 with prepayment without penalty;e. loan to be extended without collateral;f. aggregate amount of loans, given for income generation, is not less than 50 per cent of the total loans given by the MFIs;g. loan is repayable on weekly, fortnightly or monthly instalments at the choice of the borrowerVIII. Non-Banking Financial Company – Factors (NBFC-Factors): NBFC-Factor is a non-deposit taking NBFC engaged in the principal business of factoring. The financial assets in the factoring business should constitute at least 50 percent of its total assets and its income derived from factoring business should not be less than 50 percent of its gross income.IX. Mortgage Guarantee Companies (MGC) - MGC are financial institutions for which at least 90% of the business turnover is mortgage guarantee business or at least 90% of the gross income is from mortgage guarantee business and net owned fund is ₹ 100 crore.X. NBFC- Non-Operative Financial Holding Company (NOFHC) is financial institution through which promoter / promoter groups will be permitted to set up a new bank .It’s a wholly-owned Non-Operative Financial Holding Company (NOFHC) which will hold the bank as well as all other financial services companies regulated by RBI or other financial sector regulators, to the extent permissible under the applicable regulatory prescriptions.11. What are the powers of the Reserve Bank with regard to 'Non-Bank Financial Companies’, that is, companies that meet the 50-50 Principal Business Criteria?The Reserve Bank has been given the powers under the RBI Act 1934 to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs that meet the 50-50 criteria of principal business. The Reserve Bank can penalize NBFCs for violating the provisions of the RBI Act or the directions or orders issued by RBI under RBI Act. The penal action can also result in RBI cancelling the Certificate of Registration issued to the NBFC, or prohibiting them from accepting deposits and alienating their assets or filing a winding up petition.12. What action can be taken against persons/financial companies making false claim of being regulated by the Reserve Bank?It is illegal for any financial entity or unincorporated body to make a false claim of being regulated by the Reserve Bank to mislead the public to collect deposits and is liable for penal action under the Indian Penal Code. Information in this regard may be forwarded to the nearest office of the Reserve Bank and the Police.13. What action is taken if financial companies which are lending or making investments as their principal business do not obtain a Certificate of Registration from the Reserve Bank?If companies that are required to be registered with the Reserve Bank as NBFCs, are found to be conducting non-banking financial activity, such as, lending, investment or deposit acceptance as their principal business, without seeking registration, the Reserve Bank can impose penalty or fine on them or can even prosecute them in a court of law. If members of public come across any entity which does non-banking financial activity but does not figure in the list of authorized NBFC on RBI website, they should inform the nearest Regional Office of the Reserve Bank, for appropriate action to be taken for contravention of the provisions of the RBI Act, 1934.14. Where can one find list of Registered NBFCs and instructions issued to NBFCs?The list of registered NBFCs is available on the web site of Reserve Bank of India and can be viewed at www.rbi.org.in → Sitemap → NBFC List. The instructions issued to NBFCs from time to time are also hosted at www.rbi.org.in → Notifications → Master Circulars → Non-banking, besides, being issued through Official Gazette notifications and press releases.15. What are the regulations applicable on non-deposit accepting NBFCs with asset size of less than ₹ 500 crore?The regulation on non-deposit accepting NBFCs with asset size of less than ₹ 500 crore would be as under:(i) They shall not be subjected to any regulation either prudential or conduct of business regulations viz., Fair Practices Code (FPC), KYC, etc., if they have not accessed any public funds and do not have a customer interface.(ii) Those having customer interface will be subjected only to conduct of business regulations including FPC, KYC etc., if they are not accessing public funds.(iii) Those accepting public funds will be subjected to limited prudential regulations but not conduct of business regulations if they have no customer interface.(iv) Where both public funds are accepted and customer interface exist, such companies will be subjected both to limited prudential regulations and conduct of business regulations.16. What does the term public funds include? Is it the same as public deposits?Public funds are not the same as public deposits. Public funds include public deposits, inter-corporate deposits, bank finance and all funds received whether directly or indirectly from outside sources such as funds raised by issue of Commercial Papers, debentures etc. However, even though public funds include public deposits in the general course, it may be noted that CICs/CICs-ND-SI cannot accept public deposits.Further, indirect receipt of public funds means funds received not directly but through associates and group entities which have access to public funds.17. What are the various prudential regulations applicable to NBFCs?The Bank has issued detailed directions on prudential norms, vide Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 and Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015. Applicable regulations vary based on the deposit acceptance or systemic importance of the NBFC.The directions inter alia, prescribe guidelines on income recognition, asset classification and provisioning requirements applicable to NBFCs, exposure norms, disclosures in the balance sheet, requirement of capital adequacy, restrictions on investments in land and building and unquoted shares, loan to value (LTV) ratio for NBFCs predominantly engaged in business of lending against gold jewellery, besides others. Deposit accepting NBFCs have also to comply with the statutory liquidity requirements. Details of the prudential regulations applicable to NBFCs holding deposits and those not holding deposits is available in the section ‘Regulation – Non-Banking – Notifications - Master Circulars’ in the RBI website.18. Please explain the terms ‘owned fund’ and ‘net owned fund’ in relation to NBFCs?‘Owned Fund’ means aggregate of the paid-up equity capital, preference shares which are compulsorily convertible into equity, free reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of asset, excluding reserves created by revaluation of asset, after deducting therefrom accumulated balance of loss, deferred revenue expenditure and other intangible assets. 'Net Owned Fund' is the amount as arrived at above, minus the amount of investments of such company in shares of its subsidiaries, companies in the same group and all other NBFCs and the book value of debentures, bonds, outstanding loans and advances including hire purchase and lease finance made to and deposits with subsidiaries and companies in the same group, to the extent it exceeds 10% of the owned fund.19. What are the responsibilities of the NBFCs registered with Reserve Bank, with regard to submission on compliances and other information?A. Returns to be submitted by deposit taking NBFCsNBS-1 Quarterly Returns on deposits in First Schedule.NBS-2 Quarterly return on Prudential Norms is required to be submitted by NBFC accepting public deposits.NBS-3 Quarterly return on Liquid Assets by deposit taking NBFC.NBS-4 Annual return of critical parameters by a rejected company holding public deposits. (NBS-5 stands withdrawn as submission of NBS 1 has been made quarterly.)NBS-6 Monthly return on exposure to capital market by deposit taking NBFC with total assets of ₹ 100 crore and above.Half-yearly ALM return by NBFC holding public deposits of more than ₹ 20 crore or asset size of more than ₹ 100 croreAudited Balance sheet and Auditor’s Report by NBFC accepting public deposits.Branch Info Return.B. Returns to be submitted by NBFCs-ND-SINBS-7 A Quarterly statement of capital funds, risk weighted assets, risk asset ratio etc., for NBFC-ND-SI.Monthly Return on Important Financial Parameters of NBFCs-ND-SI.ALM returns:(i) Statement of short term dynamic liquidity in format ALM [NBS-ALM1] -Monthly,(ii) Statement of structural liquidity in format ALM [NBS-ALM2] Half yearly,(iii) Statement of Interest Rate Sensitivity in format ALM -[NBS-ALM3], Half yearlyBranch Info returnC. Quarterly return on important financial parameters of non deposit taking NBFCs having assets of more than ₹ 50 crore and above but less than ₹ 100 croreBasic information like name of the company, address, NOF, profit / loss during the last three years has to be submitted quarterly by non-deposit taking NBFCs with asset size between ₹ 50 crore and ₹ 100 crore.There are other generic reports to be submitted by all NBFCs as elaborated in Master Circular on Returns to be submitted by NBFCs as available on www.rbi.org.in → Notifications → Master Circulars → Non-banking and Circular DNBS (IT) CC.No.02/24.01.191/2015-16 dated July 9, 2015 as available on www.rbi.org.in → Notifications.20. Whether the circular on Lending against shares dated August 21, 2014 is applicable to existing loans also?The Circular is applicable from the date of the circular and therefore the Circular shall not apply on those transactions which have been entered into prior to the date of the Circular. However, the guidelines will be applicable in case of roll-over/ renewal of loans. Guidelines will not apply to transactions where documents have been executed prior to the date of the circular and disbursement is pending.21. Will the circular on Lending against shares be applicable on restructured accounts?No. the Circular will not be applicable on restructured accounts22. Will the Circular on Lending against shares be applicable on those loans where the primary security is not shares/ units of mutual funds?Loans which are against the collateral of multiple securities and it is specifically agreed to in the agreement that primary security would be something other than shares/ units of mutual funds, LTV would not be applicable. However, reporting requirements shall remain. In cases where such differentiation is not made (thereby NBFCs can off-load shares at the instance of a default), LTV would be applicable.23. Whether LTV for loans issued against the collateral of shares is to be computed at scrip level or at portfolio level?LTV would be computed at portfolio level.24. Whether PoA/ Non-Disposal undertaking structure by whatever name called is covered under the Circular on Lending against shares?Yes, the Circular would be applicable and the type of encumbrance created is immaterial.25. Does the definition of “companies in a group” as given in Systemically Important Non-Banking Financial (non-deposit accepting or holding) companies Prudential Norms Directions, 2015 apply in respect of concentration of credit/ investment norms.No, the definition of “companies is a group” is only for the purpose of determining the applicability of prudential norms on multiple NBFCs in a group.26. Whether acquisition/ transfer of shareholding of 26 per cent or more of the paid up equity capital of an NBFC within the same group i.e. intra group transfers require prior approval of the Bank?Yes, prior approval would be required in all cases of acquisition/ transfer of shareholding of 26 per cent or more of the paid up equity capital of an NBFC. In case of intra-group transfers, NBFCs shall submit an application, on the company letter head, for obtaining prior approval of the Bank. Based on the application of the NBFC, it would be decided, on a case to case basis, whether the NBFC requires to submit the documents as prescribed at para 3 of DNBR (PD) CC Kjøpesenter Gjøvik & Hamar. 065/03.10.001/2015-16 dated July 9, 2015 for processing the application of the company. In cases where approval is granted without the documents, the NBFC would be required to submit the same after the process of transfer is complete.27. NBFCs are charging high interest rates from their borrowers. Is there any ceiling on interest rate charged by the NBFCs to their borrowers?Reserve Bank of India has deregulated interest rates to be charged to borrowers by financial institutions (other than NBFC- Micro Finance Institution). The rate of interest to be charged by the company is governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFCs. However, the NBFCs have to be transparent and the rate of interest and manner of arriving at the rate of interest to different categories of borrowers should be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter etc.28. RBI permits NBFCs to hedge their exposure through dealing in IRFs. Currently, IRFs are on single stock 10 yr 8.40% 2024 security. The Composition of Balance Sheet is mix of fixed/ floating interest rate and different credit profile. Whether 10 yr single security can be used for hedging 2-3 yr liability and asset (Duration adjusted) or can be used for investment in other long tenor securities or corporate bonds. Alternatively, whether IRFs can be used holistically for hedging assets and liabilities in dynamic interest rate scenarios within total Balance Sheet amount and within hedging definition?IRF may be used to hedge interest rate risk associated with single asset/ liability or a group of assets/ liabilities. Hence, NBFCs are permitted to use duration based hedging for managing interest rate risk.29. Whether NBFCs as trading member can participate in the IRF market only for hedging or can also take trading position?As per extant guidelines NBFCs with asset size of ₹ 1,000 cr and above are permitted to participate in IRF as trading members. While, trading members of stock exchanges are permitted to execute trades on their own account as well as on account of their clients, banks and PDs have been allowed to deal in IRF for both hedging and trading on own account and not on client’s account. Similarly, NBFCs as trading members are permitted to execute their proprietary trades and not to undertake transactions on behalf of clients.C. Residuary Non-Banking Companies (RNBCs)30. What is a Residuary Non-Banking Company (RNBC)? In what way it is different from other NBFCs?Residuary Non-Banking Company is a class of NBFC which is a company and has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner and not being Investment, Asset Financing, Loan Company. These companies are required to maintain investments as per directions of RBI, in addition to liquid assets. The functioning of these companies is different from those of NBFCs in terms of method of mobilization of deposits and requirement of deployment of depositors' funds as per Directions. Besides, Prudential Norms Directions are applicable to these companies also.31. We understand that there is no ceiling on raising of deposits by RNBCs, then how safe is deposit with them?It is true that there is no ceiling on raising of deposits by RNBCs. However, every RNBC has to ensure that the amounts deposited with it are fully invested in approved investments. In other words, in order to secure the interests of depositor, such companies are required to invest 100 per cent of their deposit liability into highly liquid and secure instruments, namely, Central/State Government securities, fixed deposits with scheduled commercial banks (SCB), Certificate of Deposits of SCB/FIs, units of Mutual Funds, etc.32. Can RNBC forfeit deposit if deposit instalments are not paid regularly or discontinued?No. Residuary Non-Banking Company cannot forfeit any amount deposited by the depositor, or any interest, premium, bonus or other advantage accrued thereon.33. What is the rate of interest that an RNBC must pay on deposits and what should be maturity period of deposits taken by them?The minimum interest an RNBC should pay on deposits should be 5% (to be compounded annually) on the amount deposited in lump sum or at monthly or longer intervals; and 3.5% (to be compounded annually) on the amount deposited under daily deposit scheme. Interest here includes premium, bonus or any other advantage, that an RNBC promises to the depositor by way of return. An RNBC can accept deposits for a minimum period of 12 months and maximum period of 84 months from the date of receipt of such deposit. They cannot accept deposits repayable on demand. However, at present, the only RNBCs in existence (Peerless) has been directed by the Reserve Bank to stop collecting deposits, repay the deposits to the depositor and wind up their RNBC business as their business model is inherently unviable.D. Definition of deposits, Eligible / Ineligible Institutions to accept deposits and Related Matters34. What is ‘deposit’ and ‘public deposit’? Is it defined anywhere?The term ‘deposit’ is defined under Section 45 I(bb) of the RBI Act, 1934. ‘Deposit’ includes and shall be deemed always to have included any receipt of money by way of deposit or loan or in any other form but does not include:i. amount raised by way of share capital, or contributed as capital by partners of a firm;ii. amount received from a scheduled bank, a co-operative bank, a banking company, Development bank, State Financial Corporation, IDBI or any other institution specified by RBI;iii. amount received in ordinary course of business by way of security deposit, dealership deposit, earnest money, advance against orders for goods, properties or services;iv. amount received by a registered money lender other than a body corporate;v. amount received by way of subscriptions in respect of a ‘Chit’.Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits ( Reserve Bank) Directions, 1998 defines a ‘ public deposit’ as a ‘deposit’ as defined under Section 45 I(bb) of the RBI Act, 1934 and further excludes the following:a. amount received from the Central/ State Government or any other source where repayment is guaranteed by Central/ State Government or any amount received from local authority or foreign government or any foreign citizen/ authority/ person;b. any amount received from financial institutions specified by RBI for this purpose;c. any amount received by a company from any other company;d. amount received by way of subscriptions to shares, stock, bonds or debentures pending allotment or by way of calls in advance if such amount is not repayable to the members under the articles of association of the company;e. amount received from directors of a company or from its shareholders by private company or by a private company which has become a public company;f. amount raised by issue of bonds or debentures secured by mortgage of any immovable property or other asset of the company subject to conditions;fa. any amount raised by issuance of non-convertible debentures with a maturity more than one year and having the minimum subscription per investor at ₹ 1 crore and above, provided it is in accordance with the guidelines issued by the Bank.g. the amount brought in by the promoters by way of unsecured loan;h. amount received from a mutual fund;i. any amount received as hybrid debt or subordinated debt;j. amount received from a relative of the director of an NBFC;k. any amount received by issuance of Commercial Paper.l. any amount received by a systemically important non-deposit taking non-banking financial company by issuance of ‘perpetual debt instruments’m. any amount raised by the issue of infrastructure bonds by an Infrastructure Finance CompanyThus, the directions exclude from the definition of public deposit, amount raised from certain set of informed lenders who can make independent decision.35. Which entities can legally accept deposits from public?Banks, including co-operative banks, can accept deposits. Non-bank finance companies, which have been issued Certificate of Registration by RBI with a specific licence to accept deposits, are entitled to accept public deposit. In other words, not all NBFCs registered with the Reserve Bank are entitled to accept deposits but only those that hold a deposit accepting Certificate of Registration can accept deposits. They can, however, accept deposits, only to the extent permissible. Housing Finance Companies, which are again specifically authorized to collect deposits and companies authorized by Ministry of Corporate Affairs under the Companies Acceptance of Deposits Rules framed by Central Government under the Companies Act can also accept deposits also upto a certain limit. Cooperative Credit Societies can accept deposits from their members but not from the general public. The Reserve Bank regulates the deposit acceptance only of banks, cooperative banks and NBFCs.It is not legally permissible for other entities to accept public deposits. Unincorporated bodies like individuals, partnership firms, and other association of individuals are prohibited from carrying on the business of acceptance of deposits as their principal business. Such unincorporated bodies are prohibited from even accepting deposits if they are carrying on financial business.36. Can all NBFCs accept deposits? Is there any ceiling on acceptance of Public Deposits? What is the rate of interest and period of deposit which NBFCs can accept?All NBFCs are not entitled to accept public deposits. Only those NBFCs to which the Bank had given a specific authorisation and have an investment grade rating are allowed to accept/ hold public deposits to a limit of 1.5 times of its Net Owned Funds. All existing unrated AFCs that have been allowed to accept deposits shall have to get themselves rated by March 31, 2016. Those AFCs that do not get an investment grade rating by March 31, 2016, will not be allowed to renew existing or accept fresh deposits thereafter. In the intervening period, i.e. till March 31, 2016, unrated AFCs or those with a sub-investment grade rating can only renew existing deposits on maturity, and not accept fresh deposits, till they obtain an investment grade rating.However, as a matter of public policy, Reserve Bank has decided that only banks should be allowed to accept public deposits and as such has since 1997 not issued any Certificate of Registration (CoR) to new NBFCs for acceptance of public deposits.Presently, the maximum rate of interest an NBFC can offer is 12.5%. The interest may be paid or compounded at rests not shorter than monthly rests. The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.37. In respect of companies which do not fulfill the 50-50 criteria but are accepting deposits – do they come under RBI purview?A company which does not have financial assets which is more than 50% of its total assets and does not derive at least 50% of its gross income from such assets is not an NBFC. Its principal business would be non-financial activity like agricultural operations, industrial activity, purchase or sale of goods or purchase/construction of immoveable property, and will be a non-banking non-financial company. Acceptance of deposits by a Non-Banking Non-Financial Company are governed by the rules and regulations issued by the Ministry of Corporate Affairs.38. Why is the RBI so restrictive in allowing NBFCs to raise public deposits?The Reserve Bank's overarching concern while supervising any financial entity is protection of depositors' interest. Depositors place deposit with any entity on trust unlike an investor who invests in the shares of a company with the intention of sharing the risk as well as return with the promoters. Protection of depositors' interest thus is supreme in financial regulation. Banks are the most regulated financial entities. The Deposit Insurance and Credit Guarantee Corporation pays insurance on deposits up to ₹ One lakh in case a bank failed.39. Which are the NBFCs specifically authorized by RBI to accept deposits?The Reserve Bank publishes the list of NBFCs that hold a valid Certificate of Registration for accepting deposits on its website: www.rbi.org.in → Sitemap → NBFC List → List of NBFCs Permitted to Accept Deposits. At times, some companies are temporarily prohibited from accepting public deposits. The Reserve Bank publishes the list of NBFCs temporarily prohibited also on its website. The Reserve Bank keeps both these lists updated. Members of the public are advised to check both these lists before placing deposits with NBFCs.40. Whether NBFCs can accept deposits from NRIs?Effective from April 24, 2004, NBFCs cannot accept deposits from NRIs except deposits by debit to NRO account of NRI provided such amount does not represent inward remittance or transfer from NRE/FCNR (B) account. However, the existing NRI deposits can be renewed.41. Can a Co-operative Credit Society accept deposits from the public?No. Co-operative Credit Societies cannot accept deposits from general public. They can accept deposits only from their members within the limit specified in their bye laws.42. Can a Salary Earners’ Society accept deposits from the public?No. These societies are formed for salaried employees and hence they can accept deposit only from their own members and not from general public.43. Is nomination facility available to the Depositors of NBFCs?Yes, nomination facility is available to the depositors of NBFCs. The Rules for nomination facility are provided for in section 45QB of the Reserve Bank of India Act, 1934. Non-Banking Financial Companies have been advised to adopt the Banking Companies (Nomination) Rules, 1985 made under Section 45ZA of the Banking Regulation Act, 1949. Accordingly, depositor/s of NBFCs are permitted to nominate one person to whom the NBFC can return the deposit in the event of the death of the depositor/s. NBFCs are advised to accept nominations made by the depositors in the form similar to one specified under the said rules, viz Form DA 1 for the purpose of nomination, and Form DA2 and DA3 for cancellation of nomination and change of nomination respectively.44. How does the Reserve Bank come to know about unauthorized acceptance of deposits by companies not registered with it or of NBFCs engaged in lending or investment activities without obtaining the Certificate of Registration from it?NBFCs that ought to have sought registration from RBI but are functioning without doing so are committing a breach of law. Such companies are liable for action as envisaged under the RBI Act, 1934. To identify such entities, RBI has multiple sources of information. These include market intelligence, complaints received from affected parties, industry sources, and exception reports submitted by statutory auditors in terms of Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2008. Further, the State Level Co-ordination Committees (SLCC) is convened by RBI in all the States/UTs on quarterly basis. The SLCC is now chaired by the Chief Secretary/ Administrator of the concerned State/UT and has, as its members, apart from the Reserve Bank, the Regional Directorate of the MCA/ ROC, local unit of SEBI, NHB, Registrar of Chits, ICAI, Economic Intelligence Unit of the State Police and officials from Law and Home Ministries of the State Government. As all the relevant financial sector regulators and enforcement agencies participate in the SLCC, it is possible to quickly share the information and agree on an effective course of action to be taken against entities indulging in unauthorized and suspect businesses involving funds mobilization from public.45. Can Proprietorship/Partnership Concerns associated/not associated with registered NBFCs accept public deposits?No. Proprietorship and partnership concerns are un-incorporated bodies. Hence they are prohibited under the RBI Act 1934 from accepting public deposits.46. There are many jewellery shops taking money from the public in instalments. Is this amounting to acceptance of deposits?It depends on whether the money is received as advance for delivering jewellery at a future date or whether the money is received with a promise to return the same with interest. The money accepted by Jewellery shops in instalments for the purpose of delivering jewellery at the end of the period of contract is not deposit. It will amount to acceptance of deposits if in return for the money received, the jewellery shop promises to return the principal amount along with interest.47. What action can be taken if such unincorporated entities accept public deposits? What if NBFCs which have not been authorized to accept public deposits use proprietorship/partnership firms floated by their promoters to collect deposits?Such unincorporated entities, if found accepting public deposits, are liable for criminal action. Further NBFCs are prohibited by RBI from associating with any unincorporated bodies. If NBFCs associate themselves with proprietorship/partnership firms accepting deposits in contravention of RBI Act, they are also liable to be prosecuted under criminal law or under the Protection of Interest of Depositors (in Financial Establishments) Act, if passed by the State Governments.48. What is the difference between acceptance of money by Chit Funds and acceptance of deposits?Deposits are defined under the RBI Act 1934 as acceptance of money other than that raised by way of share capital, money received from banks and other financial institutions, money received as security deposit, earnest money and advance against goods or services and subscriptions to chits. All other amounts, received as loan or in any form are treated as deposits. Chit Funds activity involves contributions by members in instalments by way of subscription to the Chit and by rotation each member of the Chit receives the chit amount. The subscriptions are specifically excluded from the definition of deposits and cannot be termed as deposits. While Chit funds may collect subscriptions as above, they are prohibited by RBI from accepting deposits with effect from August 2009.E. Depositor Protection Issues49. What are the salient features of NBFC regulations which the depositor may note at the time of investment?Some of the important regulations relating to acceptance of deposits by NBFCs are as under:The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 12.5 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests.NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors.NBFCs should have minimum investment grade credit rating.The deposits with NBFCs are not insured.The repayment of deposits by NBFCs is not guaranteed by RBI.Certain mandatory disclosures are to be made about the company in the Application Form issued by the company soliciting deposits.50. What precautions should a depositor take before placing deposit with an NBFC?A depositor wanting to place deposit with an NBFC must take the following precautions before placing deposits:That the NBFC is registered with RBI and specifically authorized by the RBI to accept deposits. A list of deposit taking NBFCs entitled to accept deposits is available at www.rbi.org.in → Sitemap → NBFC List. The depositor should check the list of NBFCs permitted to accept public deposits and also check that it is not appearing in the list of companies prohibited from accepting deposits, which is available at www.rbi.org.in → Sitemap → NBFC List → NBFCs who have been issued prohibitory orders, winding up petitions filed and legal cases under Chapter IIIB, IIIC and others.NBFCs have to prominently display the Certificate of Registration (CoR) issued by the Reserve Bank on its site. This certificate should also reflect that the NBFC has been specifically authorized by RBI to accept deposits. Depositors must scrutinize the certificate to ensure that the NBFC is authorized to accept deposits.The maximum interest rate that an NBFC can pay to a depositor should not exceed 12.5%. The Reserve Bank keeps altering the interest rates depending on the macro-economic environment. The Reserve Bank publishes the change in the interest rates on www.rbi.org.in → Sitemap → NBFC List → FAQs.The depositor must insist on a proper receipt for every amount of deposit placed with the company. The receipt should be duly signed by an officer authorized by the company and should state the date of the deposit, the name of the depositor, the amount in words and figures, rate of interest payable, maturity date and amount.In the case of brokers/agents etc collecting public deposits on behalf of NBFCs, the depositors should satisfy themselves that the brokers/agents are duly authorized by the NBFC.The depositor must bear in mind that public deposits are unsecured and Deposit Insurance facility is not available to depositors of NBFCs.The Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.51. Does RBI guarantee the repayment of the deposits collected by NBFCs?No. The Reserve Bank does not guarantee repayment of deposits by NBFCs even though they may be authorized to collect deposits. As such, investors and depositors should take informed decisions while placing deposit with an NBFC.52. In case an NBFC defaults in repayment of deposit what course of action can be taken by depositors?If an NBFC defaults in repayment of deposit, the depositor can approach Company Law Board or Consumer Forum or file a civil suit in a court of law to recover the deposits. NBFCs are also advised to follow a grievance redress procedure as indicated in reply to question 57 below. Further, at the level of the State Government, the State Legislations on Protection of Interest of Depositors (in Financial Establishments) empowers the State Governments to take action even before the default takes place or complaints are received from depositors. If there is perpetration of an offence and if the intention is to defraud, the State Government can even attach properties.53. What is the role of Company Law Board in protecting the interest of depositors? How can one approach it?When an NBFC fails to repay any deposit or part thereof in accordance with the terms and conditions of such deposit, the Company Law Board (CLB) either on its own motion or on an application from the depositor, directs by order the Non-Banking Financial Company to make repayment of such deposit or part thereof forthwith or within such time and subject to such conditions as may be specified in the order. After making the payment, the company will need to file the compliance with the local office of the Reserve Bank of India.As explained above, the depositor can approach CLB by mailing an application in prescribed form to the appropriate bench of the Company Law Board according to its territorial jurisdiction along with the prescribed fee.