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          Good morning!
          5 THINGS FIRST
          SC to hear plea on migrant workers during lockdown; Air India to open booking for flights to US, Canada; Tata Sons board meeting to review business plans; World Environment Day; Lunar eclipse
          1. India’s daily cases the third-highest globally
          1. India’s daily cases the third-highest globally
          • India, for the first time, reported more than 9,000 daily cases on Thursday, as the Covid-19 outbreak continues unabated. With 9,651 new confirmed cases, India is reporting more cases a day than any other nation, save for the United States and Brazil, as per data compiled by Worldometer. India’s daily cases are now even more than Russia’s.
          • The country also recorded 270 fatalities on the day. India is currently the fourth-worst on the daily fatalities, behind Mexico, USA and Brazil, Worldometer data shows. Till date, the country has reported 219,117 cases (7th highest in the world) and 6,349 fatalities (12th highest).
          • State-wise, Maharashtra continued to report the most infections, 2,933, and fatalities, 123. At least six states/Union territories also registered their highest daily cases —Tamil Nadu (1,384 new cases), Gujarat (492), Haryana (327), Jammu & Kashmir (285), Kerala (94), and Assam (364).
          • The Centre on Thursday suggested at the Supreme Court it will dilute the previous notification that made it mandatory for employers to pay full wages to workers during the lockdown, saying employers and employees must seek a settlement on payment of wages under the Industrial Disputes Act. Private companies had argued that the government, under the Disaster Management Act, was not empowered to direct them to pay full wages to workers. The court is to pass its orders on June 12.
          • Also, the Centre told the SC that though hospitals are responsible for implementing the Infection Prevention and Control (IPC) activities, the final responsibility lies with the healthcare workers to protect themselves from Covid-19.
          • A Nisarga update: Cyclone Nisarga, which weakened into a depression earlier in the day further weakened into a "well-marked low-pressure area" and lay over central parts of Madhya Pradesh on Thursday evening, said the IMD. According to a Maharashtra government statement, six persons lost lives in incidents related to the cyclone, while 16 suffered injuries in the state.
          2. Did lockdown “flatten the wrong curve”?
          2. Did lockdown “flatten the wrong curve”?
          The lockdown first put in place on March 25 was aimed at flattening the Covid-19 curve, but it ended up flattening a very different curve — the growth (GDP) curve — Rajiv Bajaj, managing director of Bajaj Auto and one of the most influential voices of India Inc, said on Thursday in his conversation with Congress’ Rahul Gandhi. The GDP growth in the January-March quarter of 2019-20 hit a 11-year low though it overlapped with just one week of the lockdown. Some excerpts:

          • "There were various forms of lockdown that we could have opted for. We chose a hard lockdown that was porous. On one hand a porous lockdown makes sure that the virus will still exist and it is still waiting to hit you when you will unlock. So you have not solved that problem.”
          • “But you have definitely decimated the economy. You flattened the wrong curve. It is not the infection curve, it is the GDP curve. This is what we have ended (up) with, the worst of both worlds”.
          • “Unfortunately, India not only looked west, it went to the wild west. I think we stayed more towards the impervious side.”
          • “We have fallen very short of disclosing facts, logic and the truth (about Covid-19) and this has then got amplified and created such an enormous fear in people that people seem to think that contagion is equal to contagious cancer or something and now to change the mind of the people to start "living with the virus" … will take a long time”
            Covid Curve 1
          (Check the latest data here)

          Meanwhile, another equally influential industrialist and billionaire Gautam Adani praised the Centre saying: “had the decisions that got made been delayed we could have been facing an unmitigated disaster that would not just impact India but have global ramifications”. The statement was part of the Adani Enterprises’ annual report released on Wednesday. His company, however, has expressed its inability to take over three airports it won after aggressive bidding last year citing uncertainty in the aviation sector due to the coronavirus pandemic, dealing a blow to the government’s privatisation plan.
          3. What loan interest waiver would mean for you and banks
          3. What loan interest waiver would mean for you and banks
          • The observation: Expressing its disappointment at the ‘leak’ of Wednesday’s proceedings, the apex court on Thursday slammed the RBI in the interest waiver case on outstanding loans whose instalments were to be paid during the lockdown period, saying that “economic aspect should not be higher than health of people”. The RBI had argued that it would not be “prudent or appropriate to go for a forced waiver of interest” as it would put at risk the “financial viability of the banks it is mandated to regulate”. The court has sought the Finance Minister's views on the waiver of interest and fixed June 12 as the next date of hearing.
          • The matter: The court is hearing a PIL on two issues — on whether interest should be charged during the moratorium period (March 1 to August 31) and whether interest should be charged on the deferred interest. According to the RBI, almost Rs 38.69 lakh crore of the Rs 100 lakh crore outstanding loans as of December 31, 2019 — almost 39% — are currently under the 6-month moratorium as part of the Covid-19 relief package. Among the worst affected are Bank of Baroda, 65% of whose loans are under moratorium as also IDBI Bank (65-70%) and Bandhan Bank (90%).
          • The cost: The RBI, in its reply to the court, had said that based on the assumption that 65% of the loans will be under moratorium, banks would collectively lose Rs 33,500 crore every month as interest charges for 6 months, amounting to Rs 2.01 lakh crore — roughly 1% of the GDP. The figure will be higher if NBFCs and other financial institutions are included.
          • The impact: Banks pay interest on deposits (and cover their cost of operation) out of the interest they charge for loans. Stopping banks from charging interest on loans could have a ripple effect on the interest they pay to depositors. Moreover, a majority of the loan books of most banks comprises corporate loans — retail loans comprise about 20% of the loan books. Not just that, 54% of corporate loans are to just 1% of all companies in India, with 266 large firms having taken loans worth over Rs 5,000 crore each, amounting to over Rs 40.61 lakh crore. Should the SC put a stop to interest payments, the major beneficiaries will be large corporate houses rather than individual borrowers.
          4. Virtual meet, but real ties: India, Australia upgrade partnership
          4. Virtual meet, but real ties: India, Australia upgrade partnership
          Samosa diplomacy: India and Australia elevated their ties to a ‘comprehensive strategic partnership’, and signed nine agreements, including a pact on access to each other’s military bases for logistical support, called the Mutual Logistics Support Agreement (MLSA), after a virtual summit between Prime Minister Narendra Modi and his Aussie counterpart Scott Morrison. Morrison and Modi had set the tone for the virtual summit by sharing thoughts on samosas a few days ago.

          • The new pact lays the groundwork for ships and aircraft to refuel and access each other’s maintenance facilities. The two nations also upgraded their so-called 2+2 dialogue (foreign and defence) to ministerial-level.
          • A joint statement said, “India and Australia share a vision of a free, open, inclusive and rules-based Indo-Pacific region to support the freedom of navigation, over-flight and peaceful and cooperative use of the seas by adherence of all nations to international law.”
          • “India-Australia relations have deepened. And this depth comes from our shared values, shared interests, shared geography and shared objectives,” Modi said. “How our relations become a ‘factor of stability’ for our region and for the world, how we work together for global good, all these aspects need to be considered.”

          Why it matters:
          • India and Australia are members of the US-led Quad group of nations that is seen as a hedge against China in the Asia-Pacific region. The two already conduct bilateral defence exercise; last year, Australia sent its largest defence task force for the AUSINDEX exercise. There has been speculations that Australia could be part of the Malabar naval exercise, which includes India and the US, and since 2015, Japan. India's external affairs secretary (East) Vijay Thakur Singh, however, said there was no discussion on “any specific naval exercise”.
          • The MLSA pact comes after India had signed a military logistics agreement with the US in 2016, and later in 2018, another on interoperability of military communication devices, called COMCASA. The military and security establishments of the US and Australia are already deeply integrated; and the US is the guarantor of the national security of Japan.
          • India and Australia also share common concerns on China. Modi’s reference to “stability for our region” should be seen in this regard. India has flagged the increasing presence of Chinese ships in the Indian Ocean (the “string of pearls” strategy), while Australia, despite its close economic relationship with China, has been critical of China's naval expansion; last month an Australian frigate joined three US naval ships in a show of force in the South China Sea.
          NEWS IN CLUES
          5. This missionary movement was founded in India’s Mewat region in 1926.
          • Clue 1: The name of the group translates to ‘Society for Spreading Faith’.
          • Clue 2: It has a presence in 150 countries and its largest national wing is in Bangladesh.
          • Clue 3: Founded by the Deobandi Islamic scholar Muhammad Ilyas al-Kandhlawi, it has millions of followers.

          Scroll below for answer
          6. Court denies bail to Jamia student Safoora Zargar
          6. Court denies bail to Jamia student Safoora Zargar
          Students protest against the imprisonment of student activists Amulya Leonha and Safoora Zargar in Bengaluru on Wednesday.

          • A Delhi court on Thursday denied bail to Safoora Zargar, a Jamia Millia Islamia student who was arrested in April and charged under the Unlawful Activities Prevention Act (UAPA) in a case related to the Delhi riots. Zargar is 21 weeks pregnant; her lawyer said she is also suffering from Poly Cystic Ovarian Disorder. Considering her “precarious medical condition” the court asked the Tihar Jail Superintendent to provide adequate medical aid and assistance to her.
          • “When you choose to play with embers, you cannot blame the wind to have carried the spark a bit too far and spread the fire. The acts and inflammatory speeches of the co-conspirators are admissible under the Indian Evidence Act even against the accused,” Judge Dharmender Rana was quoted as saying by the news agency PTI. “Exchange of ideas is in fact the stepping stone for human evolution. However, the right of speech and expression and for that matter, protest or demonstration is not an absolute right and is in fact subject to reasonable restrictions under the Constitution of India,” the court added.
          • Zargar, a 27-year-old M.Phil sociology student at Jamia, was arrested on April 13; the Delhi Police claimed she was among those who organised an anti-CAA protest and road blockade under the Jafrabad Metro station in Delhi on February 22-23. At the time of the arrest, Zargar was 13 weeks pregnant. She has been held at Delhi's Tihar jail since then.
          • The central government had amended the UAPA last year, allowing law enforcers to designate individuals as terrorists; before that, only an organisation was designated as such. At the time home minister Amit Shah said: “There are crores of people who work as social activists or workers. They are never targeted (by the police). But there are a few who work for the urban Maoists, and these people won’t be spared.”
          • Since then, UAPA has been invoked against journalists in Jammu and Kashmir, feminist activists of Pinjra Tod, Natasha Narwal, among others. The Delhi Police has charged seven people under UAPA in cases related to the anti-CAA protests and the Delhi riots, including Narwal, Zargar, Meeran Haider and suspended Aam Aadmi Party councillor, Tahir Hussain.
          7. Hong Kong sends a message on Tiananmen anniversary
          7. Hong Kong sends a message on Tiananmen anniversary
          In Beijing: As is the norm, China tightened the security in and around the Tiananmen Square, Beijing, on Thursday, on the anniversary of the 1989 crackdown on the student-led protests that killed thousands. Police and armoured vehicles stood guard on the square. Few pedestrians lined up at security checkpoints where they must show IDs to be allowed through as part of mass surveillance nationwide to prevent any commemoration of the event, reports Associated Press. Many dissidents were placed under house arrest and their communications cut off, according to rights groups .

          • About the protest: In 1989, thousands of students began assembling at the Tiananmen Square demanding greater political freedom. By some accounts as many as a million joined in a few days. On the night of June 3 and 4, the Chinese military moved in and opened fire. The actual number of casualties of the crackdown is not known, but a British diplomatic cable in 2017 estimated as many as 10,000 could have died.

          In Hong Kong...
          tiananmen-HK2
          • The lack of political freedom in China has meant the anniversary is commemorated by activists in Hong Kong and Taiwan. This time, Hong Kongers also face the prospect of China finally curtailing on the freedoms that mark the city-state apart from the mainland. A reminder of an uncertain future: The Hong Kong legislature on Thursday passed a controversial bill criminalising insult of the Chinese national anthem by a comfortable majority. China’s assembly had last week moved a proposal to introduce a national security law in Hong Kong.
          • On Thursday, thousands of students defied police curfew to hold a candlelight vigil at Victoria Park, the Hong Kong Free Press reports. Students also cleaned the eight-metre tall Pillar of Shame statue, a tribute to the victims of the Tiananmen crackdown installed at the University of Hong Kong.
          tiananmen-HK

          Quoted: The US Department of State, in a statement, called for “full, public accounting of those killed or missing”. “The American people stand with the families still grieving their lost loved ones, including the courageous Tiananmen Mothers who have never stopped seeking accountability for their children’s deaths, despite great personal hardship and risk,” it added.
          8. 'Rajnigandha Phool Tumhaare'
          8. 'Rajnigandha Phool Tumhaare'
          • Basu Chatterjee, who blazed a trail of middle-of-the-road cinema along with the likes of Hrishikesh Mukherjee, Gulzar, Sai Paranjpye and Basu Bhattacharya in the '70s and '80s, died on Thursday following age related health issues. The veteran filmmaker was 90. Chatterjee died in his sleep at his Santacruz residence in Mumbai and his last rites were performed at the Santacruz crematorium.
          • Starting his career as an illustrator and cartoonist, the Ajmer-born Chatterjee learnt the filmmaking ropes under Bhattacharya in Teesri Kasam (1966). He made his directorial debut with Sara Akash three years later — often hailed, alongside Mrinal Sen’s Bhuvan Shome and Mani Kaul’s Uski Roti, as the progenitor of a bold new wave.
          • Even though the '70s was more the era of the ‘angry young man’ and action movies, fan favourites from Chatterjee like Rajnigandha, Chitchor, Chhoti Si Baat and Baton Baton Mein were considered to be more realistic. All four featured Amol Palekar, and looked at the slice-of-life stories of ordinary people, their ordinary problems, romances and dreams.
          • Chatterjee, a seven-time Filmfare award winner, also collaborated with the superstars of the era, presenting them in unique avatars — Amitabh Bachchan in Manzil, Rajesh Khanna in Chakravyuh, Dev Anand in Man Pasand, Dharmendra in Dillagi and Mithun Chakraborty in Shaukeen and Pasand Apni Apni.
          • In the '80s, he veered towards more serious movies like Ek Ruka Hua Faisla and Kamla Ki Maut, both starring Pankaj Kapur. In between was Chameli Ki Shaadi, a satire on classism and casteism, featuring Anil Kapoor and Amrita Singh. Besides his 40-odd films in Hindi and Bengali, Chatterjee also helmed two hugely popular TV serials during the early Doordarshan days — Byomkesh Bakshi and Rajani. In 1992, he received the National Film Award for Best Film on Family Welfare for his film Durga.
          YOU SHARE YOUR B'DAY WITH...
          YOU SHARE YOUR B'DAY WITH...
          Source: Various
          9. Diego Costa avoids prison, pays fine for tax fraud
          9. Diego Costa avoids prison, pays fine for tax fraud
          • Atletico Madrid forward Diego Costa took a break from training to appear in a Madrid court to ratify a pact he made to resolve a case of tax fraud. According to the court filing published last month, Costa did not declare payments of over 5 million euros from his 2014 transfer from Atletico to Premier League side Chelsea in his tax return, as well as more than one million euros in image rights. Costa played for Chelse between 2014 and 2017, winning two Premier League and a League Cup before returning to Atletico after a rift with then Chelsea manager Antonio Conte.
          • Prosecutors were asking for a six-month jail sentence and a fine of 507,208 euros to punish Costa. In accordance with Spanish law which allows penal sentences below two years for non-violent crimes to be exchanged for a financial penalty, Costa has agreed to pay an additional fine of 36,500 euros on top of the 507,208 euros to avoid jail time, reports news agency Reuters.
          • “Diego Costa reached an agreement a few months ago with the prosecutor and has already paid the corresponding fine plus interest and the request for a prison sentence was withdrawn,” an Atletico spokesman said.
          BEFORE YOU GO
          10. A lunar eclipse alert
          10. A lunar eclipse alert
          • The second penumbral lunar eclipse of the year is here. According to Time And Date, the eclipse will start at 11:15 pm IST tonight and end at 2:34 am tomorrow, while reaching the maximum eclipse at 12:54 am tomorrow. The lunar eclipse will also be visible from parts of Europe, Asia, Australia, Africa including other regions in the Pacific, Atlantic and the Indian Ocean. (While the first penumbral lunar eclipse of this year was on January 10, the other penumbral lunar eclipses of 2020 will occur on July 4 and November 29.)
          • A penumbral lunar eclipse happens when the Sun, Earth, and the Moon are in an imperfect alignment. In this case, the Earth blocks some of the Sun’s light from directly reaching the Moon with the outer part of its shadow, also known as the penumbra. Since the penumbra is much fainter than the inner dark umbra of the Earth’s shadow, a penumbral eclipse is hard to distinguish from the normal Full Moon.
          • So, unlike the dramatic reddening of the Moon seen during totality, expect to see a slight shading on the southern limb of the Moon at maximum eclipse. The colour of the Moon near mid-eclipse may take on a tea-coloured appearance, instead of its usual pearly, bone-white hue.
          • Though called the ‘Strawberry Moon’, its name has nothing to do with its colour. That’s because the Native American Algonquin tribes viewed June’s full moon as a time to gather strawberries that were ripening, per The Old Farmer’s Almanac. It also has other names like the Honey Moon, Mead Moon and even Rose Moon to signify the blooming of roses during this time of the year.
          Answer to NEWS IN CLUES
          NIC
          Tablighi Jamaat. The government has blacklisted around 2,300 foreign members of the group and barred their re-entry into India for 10 years over their participation in the outfit’s religious activities in the country flouting their ‘tourist‘ visa norms. The Jamaat’s meeting in Delhi had led to a massive spread in Covid among its members and their families. The highest number of those blacklisted are from Indonesia, followed by Bangladesh and Malaysia.
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          Written by: Rakesh Rai, Judhajit Basu, Sumil Sudhakaran, Tejeesh N.S. Behl
          Research: Rajesh Sharma