Your SandeshBox for the week

India

• Bihar CM Nitish Kumar surprise : Joins NDA again

  1. Context: In 2022, Nitish left the NDA to join the Congress and RJD and held on to the CM gaddi. FYI, he has been CM since 2015 and during this time he has switched allegiances 9 times.

  2. Now, Nitish Kumar tendered his resignation and was swiftly reinstated as Chief Minister on the same day. As part of the new arrangement with NDA, he will have two BJP leaders serving as his Deputy CM’s. 

  3. Nitish Kumar initially spearheaded the Opposition alliance "INDIA," successfully uniting opposition parties. However, he was sidelined as the alliance turned into an "all-Congress show," with Mallikarjun Kharge appointed as chairperson, thwarting Nitish's aspirations. Splainer explains this beautifully.

• Jharkhan CM jailed

  1. The ED has detained the Jharkhand CM on allegations of money laundering related to a land scam

  2. In response, the Jharkhand Mukti Morcha and Congress alliance, with a substantial majority of 47 seats, has nominated JMM leader Champai Soren as the potential successor. However, despite the alliance's comfortable majority, the governor has not yet granted approval for his appointment.

  3. This development occurred just ahead of the scheduled entry of Rahul Gandhi's yatra into the state.

     
     

Business

• RBI stops new deposits for Paytm Payments bank

  1. RBI dealt a severe blow to Paytm Payments Bank, imposing sweeping restrictions that prohibited the acceptance of fresh deposits and credit transactions, effective 29 February.

  2. The action comes after the RBI barred the payments bank from onboarding new customers in March 2022. This was reportedly due to violation of norms related to know your customer (KYC), data storage, data privacy, outsourcing of data and more.

  3. However customers can still withdraw or use balances from their accounts—savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc.—without any constraints, up to their available balance. 

• Reliance to control Star TV and Hotstar

  1. Disney is reportedly close to selling a majority stake in its Indian operations which mainly consists of Star TV channels and streaming platform Hotstar to Reliance Industries.

  2. The agreement would give Disney 40% ownership, Reliance 51%, and Bodhi Tree 9%. The deal reportedly values it’s Indian operations at $3.9 billion.

  3. In 2018, Disney had bought out Fox’s entertainment assets, valuing Star India & Hotstar at over $15 billion, emphasizing the significant shift in valuation dynamics.

• Byju’s forces investors: Slashes Valuation to $20 mn

  1. Edtech player Byju’s, a part of Think & Learn, has decided to make a drastic cut to its once-famous valuation in order to raise $200 million through a rights issue. For this issue, meant for existing investors, the company is adjusting its pre-money valuation to a mere $20 million. It would be valued at $220 million after the round, a staggering 99% drop from $22 billion.

  2. A cram-down round is financing whose terms can leave existing shareholders without a meaningful stake if they do not commit additional capital. It may also include a pay-to-play provision, which can take away their rights.

  3. Byju’s intends to use most of the funds to clear outstanding payments, amid increasing pressure from several entities advocating for bankruptcy proceedings.

  4. Post this, The key investors of Byju’s have also called for an extraordinary general meeting tackle what they describe as “persistent issues” plaguing the company, with a singular objective: The removal of founder and CEO Byju raveendran and the board which consistly solely of Byju’s family.
     

Sports, Culture & Everything else

• Bopanna wins Australian Open!

  1. The 43-year-old athlete achieved a historic milestone by becoming the oldest male player to win a Grand Slam title at the Australian Open, securing the men's doubles title and attaining the #1 ranking in doubles.

  2. In a thrilling five-setter, Janik Sinner secured his first Grand Slam victory by defeating Daniil Medvedev, marking a significant achievement in his tennis career.

  3. Arya Sabalenka demonstrated her prowess by clinching the Australian Open title twice, showcasing her dominance and excellence in women's singles tennis.

• Lewis Hamilton to join Ferrari F1 team!

  1. Lewis Hamilton, a seven-time Formula 1 champion, is set to leave the Mercedes team, where he secured six of his titles since moving from McLaren in 2013. His most recent win in the 2021 season highlighted challenges with Mercedes' new car against Red Bull.

  2. Despite having a contract with Mercedes until the end of 2025, Hamilton will be departing the team after the current season.

  3. The British racing icon is poised to take the place of Carlos Sainz with Charles Leclerc staying on until 2028.

• Interesting tidbits

  1. The IMF has revised its growth forecast for India from 6.3% to 6.5% in FY25, still below the finance ministry’s projection of 7% for the same period.

  2. World’s largest cruise ship has been launched Icon of the Seas is 365 metres long, has 20 decks and can carry up to 7,600 passengers. It also boasts more than 40 restaurants, bars and lounges. The price tag for this behemoth: $2 billion

  3. New versions of the Aadhar card will come with a clear disclaimer that they are “a proof of identity, not of citizenship or date of birth.”

  4. Poonam Pandey, the controversial actor cum model, faked her own death to raise awareness about cervical cancer.

Global

• Ex-Pakistan PM Imran Khan jailed, again!

  1. Context: In August last year, he was sentenced to three years in prison on charges of corruption—and has been in jail ever since.

  2. He has now again been sentenced with his wife to 10 + 14 years in prison and a a fine of $5.3 million on charges of leaking state secrets and corruption. More significantly, Khan has been barred from contesting elections for the next 10 years.

  3. The sentencing of Khan, just ahead of the February 8 general elections, has sparked controversy, with critics labeling the elections as a sham. Rigging accusations and a crackdown on Khan's PTI party have hindered free campaigning, creating a contentious political atmosphere. The military is backing former PM Nawaz Sharif who is already a favourite.