Exterminator Charged in Pa. Doctor's Murder













An exterminator named Joseph Smith was arrested and charged today in the strangling and burning death of Philadelphia pediatrician Melissa Ketunuti.


Smith, 36, had been sent to Ketunuti's home on a service call where the two got into "some kind of argument" in Ketunuti's basement on Monday, Capt. James Clark of the Philadelphia police department said this morning.


"At her home they got into an argument. It went terribly wrong. He struck her, and knocked her to the ground," Clark said. "Immediately he jumped on top of her, started strangling her. She passed out, and then he set her body on fire."


Clark said Smith burned the woman's body "to hide evidence like DNA." He said "at some point, he bound her up." The doctor was found with her hands and feet tied behind her back.


The captain said that before today's arrest Smith's record consisted of only "minor traffic offenses."






Philadelphia Police Department/AP Photo











Pa. Doctor Killing: Person of Interest in Custody Watch Video











Philadelphia Doctor's Murder Leaves Police Baffled Watch Video





Police received a call from Ketunuti's dog-walker about the house fire around 12:30 p.m. Monday, and once inside found Ketunuti with her hands and feet bound. They believe Smith hit her and strangled her with a rope, causing her to pass out, and then bound her body and set fire to it in order to destroy evidence, including DNA evidence.


Ketunuti, 35, was fully clothed and police do not believe she was sexually assaulted.


She was a doctor at Children's Hospital of Philadelphia and had lived alone in the Graduate Hospital neighborhood of the city for about three years.


Clark said that homicide detectives scoured the neighborhood for surveillance videos from nearby stores and businesses, and through the video identified the suspect.


Smith was spotted on video getting out of the vehicle and following Ketunuti to her home. The man left her home after an hour and was seen on video circling her home.


Detectives drove to Clark's home in Levittown, Pa., outside of Philadelphia where he lives with a girlfriend and her child, on Wednesday night and brought him back to the Philadelphia police station.


A silver Ford truck was towed from Smith's home, which was the same truck spotted on surveillance video Monday in Ketunuti's neighborhood, sources told ABC News affiliate WPVI.


There, he gave statements that led police to charge him with the murders, Clark said.


Smith will face charges of murder, arson, and abuse of a corpse.


Ketunuti's hospital issued a statement Tuesday that she was "a warm, caring, earnest, bright young woman with her whole future ahead of her," adding that she will be deeply missed.


"[She was] super pleasant, really nice," one neighbor said. "Just super friendly."



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Cameron promises Britons vote on EU exit


LONDON (Reuters) - Prime Minister David Cameron promised Britons a vote on quitting the European Union, rattling London's biggest allies and some investors by raising the prospect of uncertainty and upheaval.


Cameron announced on Wednesday that the referendum would be held by the end of 2017 - provided he wins a second term - and said that while Britain did not want to retreat from the world, public disillusionment with the bloc was at "an all-time high".


"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said in a speech, adding that his Conservative party would campaign for the 2015 parliamentary election on a promise to renegotiate the terms of Britain's EU membership.


"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."


A referendum would mark the second time British voters have had a direct say on the issue. In 1975, they decided by a wide margin to stay in, two years after the country had joined.


Most recent opinion polls have shown a slim majority would vote to leave amid bitter disenchantment, fanned by a hostile press, about the EU's perceived influence on the British way of life. However, a poll this week showed a majority for staying.


Cameron's position is fraught with uncertainty. He must come from behind to win the next election, secure support from the EU's 26 other states for a new British role, and hope those countries can persuade their voters to back the changes.


He also avoided saying exactly what he would do if he failed to win concessions in Europe, as many believe is likely.


Critics, notably among business leaders worried about the effect on investment, say that for years before a vote, Britain may slip into a dangerous and damaging limbo that could leave it adrift or effectively pushed out of the EU.


The United States, a close ally, is also uneasy about the plan, believing it will dilute Britain's international clout. President Barack Obama told Cameron last week that Washington valued "a strong UK in a strong European Union" and the White House said on Wednesday it believed Britain's membership of the EU was mutually beneficial.


Some of Britain's European partners were also anxious and told Cameron on Wednesday his strategy reflected a selfish and ignorant attitude. However, Angela Merkel, the leader of EU paymaster Germany, was quick to say she was ready to discuss Cameron's ideas.


FRENCH "NON"


French Foreign Minister Laurent Fabius was less diplomatic: "If Britain wants to leave Europe, we will roll out the red carpet," he quipped, echoing words Cameron used recently to urge France's rich to escape high taxes and move to Britain.


French President Francois Hollande repeated his refusal of special deals: "What I will say, speaking for France, and as a European, is that it isn't possible to bargain over Europe to hold this referendum," he said. "Europe must be taken as it is.


"One can have it modified in future but one cannot propose reducing or diminishing it as a condition of staying in."


Italian Prime Minister Mario Monti was more positive. He said he agreed with Cameron on the need to make the EU more innovative and welcomed the idea of a British referendum, saying he thought Britons would ultimately vote to stay in the bloc.


Billed by commentators as the most important speech of Cameron's career, his referendum promise ties him firmly to an issue that has bedeviled a generation of Conservative leaders.


In the past, he has been careful to avoid bruising partisan fights over Europe, an issue that undid the last two Conservative prime ministers, John Major and Margaret Thatcher.


His speech appeared to pacify a powerful Euroskeptic wing inside his own party, but deepen rifts with the Liberal Democrats, the junior partners in his coalition. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.


Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.


"BREXIT"?


Cameron said he would take back powers from Brussels, saying later in parliament that, when it came to employment, social and environmental legislation, "Europe has gone far too far".


But such a clawback - still the subject of an internal audit to identify which specific powers he should target for repatriation to London - is likely to be easier said than done.


If Cameron wins re-election but then fails to renegotiate Britain's membership of the EU, a 'Brexit' could loom.


Business leaders have warned that years of doubt over Britain's EU membership would damage the $2.5 trillion economy and cool the investment climate.


"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos. "This is a political decision. This is not an economic decision.


"This isn't good news. You added another reason why people will postpone investment decisions."


Cameron has been pushed into taking such a strong position partly by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in the opinion polls, mainly at the expense of the Conservatives.


"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.


Euroskeptics in Cameron's party, who have threatened to stir up trouble for the premier, were thrilled by the speech.


Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".


Whether Cameron holds the referendum remains as uncertain as the Conservatives' chances of winning the election. They trail the opposition Labour party in opinion polls, and the coalition is grappling with a stagnating economy as it pushes through unpopular public spending cuts to reduce a large budget deficit.


Labour leader Ed Miliband said on Wednesday his party did not want an in-or-out referendum.


EU REFORM


Cameron said he would campaign for Britain to stay in the EU "with all my heart and soul", provided he secured the reforms he wants. He made clear the Union must become less bureaucratic and focus more on free trade.


It was riskier to maintain the status quo than to change, he said: "The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.


Asked whether, if he did not succeed in his renegotiation strategy, would recommend a vote to take Britain out, he said only: "I want to see a strong Britain in a reformed Europe.


"We have a very clear plan. We want to reset the relationship. We will hold that referendum. We will recommend that resettlement to the British people."


Cameron said the euro zone debt crisis was forcing the bloc to change and that Britain would fight to make sure new rules were fair to the 10 countries that do not use the common currency, of which Britain is the largest.


Democratic consent for the EU in Britain was now "wafer thin", he said:


"Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union. But the question mark is already there: ignoring it won't make it go away."


A YouGov opinion poll on Monday showed that more people wanted to stay in the EU than leave it, the first such result in many months. But it was unclear whether that result was a blip.


Paul Chipperfield, a 53-year-old management consultant, said he liked the strategy: "Cameron's making the right move because I don't think we've had enough debate in this country," he said.


"We should be part of the EU but the EU needs to recognize that not everybody's going to jump on the same bandwagon."


Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success".


"I don't want Britain to leave the EU," he told parliament later. "I want Britain to reform the EU."


In the 1975 referendum, just over 67 percent voted to stay inside with nearly 33 percent against.


(Additional reporting by Paul Taylor in Davos, Alexandra Hudson in Berlin, Brenda Goh in London, Jeff Mason in Washington and James Mackenzie in Rome; Editing by Guy Faulconbridge, David Stamp and Alastair Macdonald)



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White House lifts hold on general for NATO job






WASHINGTON: President Barack Obama will go ahead with his nomination of General John Allen to command NATO after he was cleared in a saga related to the sex scandal that felled CIA director David Petraeus, officials said Wednesday.

"The investigation is now complete and General Allen's nomination to serve as the next Supreme Allied Commander Europe will proceed. We hope the Senate will consider it in a timely manner," White House spokesman Jay Carney said.

The Defense Department's inspector general exonerated Allen, currently the top general in Afghanistan, over emails sent to Florida socialite Jill Kelley, who threw parties for top brass at US Central Command.

The FBI came upon the emails from Allen in its probe of Petraeus, and defense officials had said the tone of the messages had been potentially "inappropriate" and possibly violated rules applying to military officers.

The scandal, over an affair with a biographer, prompted Petraeus to resign abruptly in November from his CIA post, ending a storied career marked by his tenure as military commander in the wars in Iraq and Afghanistan.

Initially, officials had said there were 25,000 to 30,000 pages of correspondence between Allen and Kelley, raising questions that his emails could reflect a distracted commander.

But officials later said the inquiry was only focused on a few hundred messages.

The scandal broke after Allen was nominated to take over as NATO's supreme allied commander, and his confirmation hearings before the US Senate were put on hold.

- AFP/jc



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Justice Verma panel suggests amendments to AFSPA

NEW DELHI: Taking strong cognizance of sexual offences committed by armed forces personnel in conflict zones, Justice J S Verma committee report has not only recommended amendments to the Armed Forces Special Powers Act (AFSPA) but even questioned its continuance in such areas.

The report has recommended that the Act's provision of seeking sanction from the central government before initiating any legal action against an armed forces personnel should be done away with in case of sexual crimes. These would include crimes such as outraging the modesty of a woman and rape.

While making this recommendation Justice Verma has observed that "There is an imminent need to review the continuance of AFSPA and AFSPA-like legal protocols in internal conflict areas as soon as possible. This is necessary for determining the propriety of resorting to this legislation in the area(s) concerned."

The north-east and Jammu & Kashmir have seen massive protests over the years against AFSPA specially due to the protection given to armed forces personnel against legal action that people believe allows the men in uniform get away with heinous crimes. While, J&K CM Omar Abdullah has recommended removal of AFSPA from certain areas of the state, home minister Sushilkumar Shinde has repeatedly said that time isn't ripe yet.

With respect to amendments in the Act to ensure safety of women, Justice Verma has noted: "At the outset, we notice that impunity for systematic or isolated sexual violence in the process of Internal Security duties is being legitimized by the Armed Forces Special Powers Act, which is in force in large parts of our country. It must be recognized that women in conflict areas are entitled to all the security and dignity that is afforded to citizens in any other part of our country."

To ensure protection of women in conflict areas, the report has also made several recommendations that include bringing sexual violence against women by uniformed men under the purview of ordinary criminal law and appointment of special commissioners for safety of women in conflict areas.

"These commissioners must be chosen from those who have experience with women's issues, preferably in conflict areas. In addition, such commissioners must be vested with adequate powers to monitor and initiate action for redress and criminal prosecution in all cases of sexual violence against women by armed personnel," the report states.

The committee has also recommended reorientation of training of armed forces to include laws and issues related to women's safety.

Full text of Justice (retired) JS Verma Committee report

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Scientists to resume work with lab-bred bird flu


WASHINGTON (AP) — International scientists who last year halted controversial research with the deadly bird flu say they are resuming their work as countries adopt new rules to ensure safety.


The outcry erupted when two labs — in the Netherlands and the U.S. — reported they had created easier-to-spread versions of bird flu. Amid fierce debate about the oversight of such research and whether it might aid terrorists, those scientists voluntarily halted further work last January — and more than three dozen of the world's leading flu researchers signed on as well.


On Wednesday, those scientists announced they were ending their moratorium because their pause in study worked: It gave the U.S. government and other world health authorities time to determine how they would oversee high-stakes research involving dangerous germs.


A number of countries already have issued new rules. The U.S. is finalizing its own research guidelines, a process that Dr. Anthony Fauci of the National Institutes of Health said should be completed within several weeks.


In letters published in the journals Science and Nature this week, scientists wrote that those who meet their country's requirements have a responsibility to resume studying how the deadly bird flu might mutate to become a bigger threat to people — maybe even the next pandemic. So far, the so-called H5N1 virus mostly spreads among poultry and other birds and rarely infects people.


"The risk exists in nature already. Not doing the research is really putting us in danger," said Yoshihiro Kawaoka of the University of Wisconsin-Madison. He and Ron Fouchier of Erasmus University in the Netherlands separately created the new virus strains that could spread through the air.


The controversy flared just over a year ago, when U.S. officials, prompted by the concerns of a biosecurity advisory panel, asked the two labs not to publish the results. They worried that terrorists might use the information to create a bioweapon. More broadly, scientists debated whether creating new strains of disease is a good idea, and if so, how to safeguard against laboratory accidents.


Ultimately, the flu researchers prevailed: The government decided the data didn't pose any immediate terrorism threat after all, and the two labs' work was published last summer.


Fouchier said that within weeks, he will begin new research in the Netherlands, with European funding, to explore exactly which mutations are the biggest threat. He said the work could enable scientists today to be on the lookout as bird flu continually evolves in the wild.


U.S.-funded scientists cannot resume their studies until the government's policy is finalized.


But the NIH had paid for the original research — and it would have been approved under the soon-to-come expanded policy as well, Fauci told The Associated Press. That policy will add an extra layer of review to higher-risk research, to ensure that it is scientifically worth doing and that safety and bioterrorism concerns are fully addressed up-front, he said.


Had that policy been in place over a year ago, it could have averted the bird flu debate, Fauci said: "Our answer simply would have been, yes, we vetted it very carefully and the benefit is worth any risk. Period, case closed."


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Manti Te'o Tells Katie Couric His Emotions Were Real













Manti Te'o says that even though he was hoaxed by the supposed existence of a fake girlfriend, his inspirational story of playing through emotional pain "was all real and that's something that I can't fake."


Te'o made his comments to Katie Couric which will air the exclusive interview on Thursday.


Te'o, 21, has been alternately questioned and lampooned over his role in the hoax that led him and the public to believe that his girlfriend Lennay Kekua died of leukemia as Te'o led the Notre Dame football team to an undefeated season that culminated in the national championship game.


Te'o was also a finalist for the Heisman Trophy, which goes to the best college football player in the country. Couric asked the star linebacker whether the emotional "story line" of a girlfriend who died on the same day as his grandmother "helped propel you to second place in Heisman voting?"


"I don't know. I really don't know," Te'o replied.


See more exclusive previews tonight on "World News With Diane Sawyer" and "Nightline."


He was more certain, however, when Couric pressed him by pointing out that it had become "sort of a legend that you had endured this hardship and gone on to play your team and your school to victory... Did you feel like, wow, I'm getting a lot of attention for this?"


Te'o denied reveling in the attention.


Watch Katie Couric's interview with Manti Te'o and his parents Thursday. Check your local listings or click here for online station finder.






Lorenzo Bevilaqua/Disney-ABC











Manti Te'o Girlfriend Hoax: Could Alleged Scammer Be Charged? Watch Video









"I think for me the only thing I basked in was that I had an impact on people, that people turned to me and for inspiration and I think that was the only thing I focused on. You know my story I felt was a guy who in times of hardship and in times of trial really held strong to his faith, held strong to his family and I felt that that was my story," said Te'o, who is a Mormon.


Te'o said there was no acting in his emotions at the time when he thought the girl he called "Lala" had died of leukemia.


"What I went through was real. You know the feelings, the pain, the sorrow, that was all real and that's something that I can't fake," he said.


During the interview, Te'o said that he received a phone call on Dec. 6, apparently from the same woman he believed was dead, who told him she was alive. She said that her name was not Lennay Kekua, it was Leah. Teo has also said that woman sent him a different picture of herself.


Nevertheless, he again publicly mentioned his girlfriend, and her death, two days later on the day the Heisman trophy was to be awarded.


"You stuck to the script. And you knew that something was amiss, Manti," Couric said.


"Katie, put yourself in my situation. I, my whole world told me that she died on Sept. 12. Everybody knew that. This girl, who I committed myself to, died on Sept. 12," Te'o said.


"Now I get a phone call on Dec. 6, saying that she's alive and then I'm going be put on national TV two days later. And to ask me about the same question. You know, what would you do?" Te'o said.


Te'o was joined by his parents, Brian and Ottilia, in the interview.


"Now many people writing about this are calling your son a liar. They are saying he manipulated the truth, really for personal gain," Couric said to Te'o's father.


"People can speculate about what they think he is. I've known him 21 years of his life. And he's not a liar. He's a kid," Brian Te'o said with tears in his eyes.


Click here for a who's who in the Manti Te'o case.


Diane O'Meara told NBC's "Today" show Tuesday that she was used as the "face" of the Twitter account of Manti Te'o's online girlfriend without her knowledge or consent.


O'Meara said that Ronaiah Tuiasosopo used pictures of her without her knowledge in creating Kekua.


"I've never met Manti Te'o in my entire life. I've never spoke with him. I've never exchanged words with him," O'Meara said Tuesday.






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Netanyahu tops Israel vote despite losses: exit polls


JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu emerged the bruised winner of Israel's election on Tuesday, with his hawkish bloc unexpectedly losing ground to resurgent center-left challengers, exit polls showed.


They suggested the Israeli leader's Likud party, yoked with the ultra-nationalist Yisrael Beitenu group, would still be the biggest bloc in the 120-member assembly with 31 seats, 11 fewer than the 42 they held in the previous parliament.


If the exit polls compiled by three Israeli television channels prove correct, Netanyahu would be on course to secure a third term in office, perhaps leading a hardline coalition that would promote Jewish settlement on occupied land.


But his weakened showing in an election he himself called earlier than necessary could complicate the struggle to forge an alliance with a stable majority in parliament.


The projections showed right-wing parties with a combined strength of 61-62 seats against 58-59 for the center-left.


"According to the exit poll results, it is clear that Israel's citizens have decided that they want me to continue in the job of prime minister of Israel and to form as broad a government as possible," Netanyahu wrote on his Facebook page.


But the mood was subdued at his Likud party's election headquarters, with only a couple of hundred party activists and supporters in a venue that could house thousands.


The 63-year-old Israeli leader promised during his election campaign to focus on tackling Iran's nuclear ambitions if he won, shunting Palestinian peacemaking well down the agenda despite Western concern to keep the quest for a solution alive.


After a lackluster campaign, Israelis voted in droves on a sunny winter day, registering the highest projected turnout since 1999 when Netanyahu, serving his first term as prime minister, was defeated by then-Labour Party leader Ehud Barak.


The strong turnout buoyed center-left parties which had pinned their hopes on energizing an army of undecided voters against Netanyahu and his nationalist-religious allies.


The centrist Yesh Atid (There is a Future) party, led by former television talk show host Yair Lapid, came second with 18 or 19 seats, exit polls showed - a stunning result for a newcomer to politics in a field of 32 contending parties.


Lapid won support amongst middle-class, secular voters by promising to resolve a growing housing shortage, abolish military draft exemptions for Jewish seminary students and seek an overhaul of the failing education system.


The once dominant Labour party led by Shelly Yachimovich was projected to take third place with 17 seats.


A stream of opinion polls before the election had predicted an easy win for Netanyahu. The final opinion polls on Friday showed his Likud-Beitenu group still on top, but losing some ground to the Jewish Home party, which opposes a Palestinian state and advocates annexing chunks of the occupied West Bank.


The exit polls projected 12 seats for Jewish Home.


COALITION BUILDING


Full election results are due by Wednesday morning and official ones will be announced on January 30. After that, President Shimon Peres is likely to ask Netanyahu, as leader of the biggest bloc in parliament, to try to form a government.


The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to seek out self-made millionaire Naftali Bennett, who heads the Jewish Home party and stole much of the limelight during the campaign.


Political sources said before the election that Netanyahu might approach center-left parties in an effort to broaden his coalition and present a more moderate face to worried allies.


British Foreign Secretary William Hague warned Israel on Tuesday it was losing international support, saying prospects for a two-state solution to the Israeli-Palestinian conflict were almost dead because of expanding Jewish settlements.


U.S.-brokered peace talks broke down in 2010 amid mutual acrimony. Since then Israel has accelerated construction in the West Bank and east Jerusalem - land the Palestinians want for their future state - much to the anger of Western partners.


Tuesday's vote is the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.


Netanyahu has said the turbulence, which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt, shows the importance of strengthening national security.


He views Iran's nuclear program as a mortal threat to the Jewish state and has vowed not to let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.


Iran denies it is planning to build the bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.


The issue barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.


One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, is the stuttering economy.


Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.


(Reporting by Jerusalem bureau; Editing by Alastair Macdonald)



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US existing-home sales dip in December: NAR






WASHINGTON: US existing-home sales dipped in December, capping a year that saw the briskest sales pace in five years as the housing market recovers, a trade group said Tuesday.

Sales fell 1.0 per cent from November to a seasonally adjusted annual rate of 4.94 million last month, the National Association of Realtors said.

The NAR revised downward its November estimate to 4.99 million, from an initial 5.04 million.

The December sales reading was weaker than the 5.10 million pace expected by analysts.

But on a 12-month basis, sales marked a 12.8 per cent increase from the December 2011 level, a fresh sign that the housing market has turned the corner six years after prices collapsed.

Total sales in 2012 was 4.65 million, up 9.2 per cent from 2011, the strongest increase since 2004, the NAR said.

The 2012 sales volume was the highest since 2007, boosted by record low mortgage interest rates, an improving job market and pent-up demand six years after the market collapsed.

The median home price rose for the 10th consecutive month year-over-year in December to US$180,800, a robust 11.5 per cent higher.

Limited inventory pushed 2012 median home prices 6.3 per cent higher to US$176,600, the biggest annual increase since 2005.

"The number of potential buyers who stayed on the sidelines accumulated during the recession, but they started entering the market early last year as their financial ability and confidence steadily grew, along with home prices," said NAR chief economist Lawrence Yun.

"Likely job creation and household formation will continue to fuel that growth," he said, predicting gains in sales and prices in 2013.

- AFP/jc



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Is FDI in retail a gimmick? SC asks

NEW DELHI: The Supreme Court on Tuesday said it would test the constitutional validity of the Centre's decision to allow foreign direct investment (FDI) in multi-brand retail and asked the UPA government to spell out the safeguards put in place to protect small traders from possible onslaught of multinationals in future.

Parliament's approval of the policy decision was cited by Attorney General G E Vahanvati to clinch the issue before a bench of Justices R M Lodha and S J Mukhopadhaya, which was hearing a PIL filed by advocate M L Sharma alleging that permitting FDI in retail was in breach of FEMA Regulations.

The bench asked whether the government has received FDI proposals since Parliament approved the policy decision. "It is now six-seven weeks since Parliament approved the decision. Now the policy is in place. What has happened since then? Have you received some investment or was it just a political gimmick," it said.

Taken aback by the terse comments, the AG said receiving FDI in retail would take some time as it was a part of series of reforms that would slowly transform the country's investment scenario to make it lucrative enough for the foreign investors and, more importantly, beneficial for the consumers and small traders.

"FDI in India has already registered a substantial increase. The whole outlook for India as an investment decision has undergone a positive change," Vahanvati said and stuck to his argument that it was a policy decision approved by Parliament after a detailed debate and hence the courts could not go into the necessity of such a move by the executive.

But, the bench said, "it is a policy decision alright but its legal validity is challenged. The government must satisfy the court on this count." It said the petitioner alleged that the decision posed a serious threat to the existence of small traders. "We want to know what steps had been taken by the government to alleviate these fears?" the bench asked.

Vahanvati said these were the concerns Parliament debated before approving the decision permitting FDI in retail. But, the bench was firm to examine the decision to permit FDI in retail not only from the small traders' point of view but from all angles and asked the government to file an affidavit in three weeks giving a detailed response to all apprehensions and legal challenges specified in the PIL.

To explain its mind, the bench gave an illustration on elimination of competition by big players in India where small traders have traditionally played the role of friendly shop next door where one could bargain a good deal on virtually every consumable item.

The bench said, "Once the big players come in, they artificially so bring down the price that the small traders fail to match the price tag and are forced to shut shop. Once the competition is eliminated in this process, the big players jack up the price leaving the consumer no option but to pay."

Vahanvati said there was adequate legal framework to protect small traders from unfair means meant to kill competition and pointed out the setting up of Competition Commission. But, the bench asked, "How many small traders can move the forum?"

On October 16, the court had said the permission to allow FDI in multi-brand retail appeared to be at variance with the FEMA Regulations. Two weeks later, the Reserve Bank of India (RBI) amended the regulations and the amendments were approved by Parliament.

Petitioner had said that Regulation 5 read with provisions of FEMA strictly prohibited FDI in retail trading (except in single brand product retailing), atomic energy, lottery, gambling and betting, business of chit funds, Nidhi company, trading in transferable development rights (TDRs) and activities/sectors not opened to private investment.

dhananjay.mahapatra@timesgroup.com

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Flu season fuels debate over paid sick time laws


NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.


A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.


"It's a balancing act" between physical health and financial well-being, she said.


An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.


Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.


Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.


The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.


Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.


But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.


Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."


"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.


Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.


To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.


"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.


Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.


Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.


In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.


The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.


Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.


While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.


"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."


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Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.


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Follow Jennifer Peltz at http://twitter.com/jennpeltz


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