Author: CD Staff

Context

• The towering Brahmapuram landfill in Kerala state is the country’s latest trash mountain to catch fire, causing dangerous heat and methane emissions.
• Landfill fires are becoming common in India with multiple incidents being reported increasing on yearly basis. In this context, this edition of the burning issue will expand on this issue. The topic is relevant for the GS-3 under environmental issues and urbanization.

What is the issue?

• Firefighters in the southern Indian city of Kochi were toiling to control toxic fumes from spreading after a landfill burst into flames for 5 days cloaking the area in a thick haze and choking residents.
• Authorities advised residents in the city of more than 600,000 to remain indoors or wear N95 face masks if they head outside. Schools were forced to close as a result of the pollution.
• While the fire has been largely put out, a thick cloud of smoke and methane gas continues to cover the area, reducing visibility and the city’s air quality while emitting a lingering, pungent odor.
• The matter even reached law corridors. Kerala High court also listed the case for hearing.

Brief about landfills

• Definition: A landfill is a site designated for the disposal of waste materials by burying them underground. The waste materials can include household and commercial garbage, industrial waste, and construction debris. Landfills are designed to contain waste and prevent it from contaminating the surrounding environment.
• History: The history of landfills dates back thousands of years to ancient civilizations such as the Greeks and Romans who used open dumps to dispose of their waste. However, the modern landfill as we know it today began to emerge in the late 19th century when cities started to grow and produce more waste. At that time, waste was often dumped in rivers or burned in open pits, leading to pollution and health hazards.
• Modern landfills: The first modern landfill was established in 1937 in Fresno, California, USA. It was a sanitary landfill designed to minimize the impact on the environment and protect public health. Since then, landfills have become the primary method of waste disposal in most developed countries, and their design and management have become more sophisticated to reduce their environmental impact.

Some recent landfill fire incidents

• Bhalswa landfill fire
• Perungudi dump yard fire
• Dadumajra landfill fire
• Ghazipur landfill fire

Waste generation in India

• Every year, 2.01 billion tonnes of municipal waste is generated. India produces 277 million tonnes of municipal solid waste every year, according to a 2016 estimate.
• Waste accumulation in Delhi and Bangalore has risen dramatically, by 1,850% and 2,175%, respectively, between 1999 and 2016.
• In India, 77% of waste is disposed of in open dumps, 18% is composted and just 5% is recycled.

Landfills in India: The ‘Man Made Mountains”

• Brahmapuram is just one of some 3,000 Indian landfills overflowing with decaying waste and emitting toxic gases. Most dumpsites are two to three decades old and currently receive 2,000 (Bhalswa) to 9,000 (Deonar) metric ton of solid waste daily.
• Landfill fires are becoming a big challenge for India’s urban civic bodies. In late April 2022, fires broke out in landfills in Chennai, Delhi and Chandigarh. Since 2015, the number of landfill fires in metropolitan cities has surged across India.
• Every Indian city has at least one man-made mountain where ‘waste’ generated in our homes and businesses ends up. About 90% of the staggering 150,000 metric ton of urban solid wastes generated every day make their way to such locations.
• These toxic sites are the dark underbelly of India’s bustling, glittering cities and are home and workplace for tens of thousands of people.

Causes of landfill fire

• Spontaneous Combustion: As organic waste decomposes, it generates heat, and if the temperature is not controlled, it can ignite the waste and start a fire.
• Lack of modern technologies: Only a few areas on large landfills have new and advanced waste management technology (like waste-to-energy, composting and refuse-derived fuel systems).
• Legacy dumps: remain problematic as the decomposition of decades-old mixed waste causes extreme water and air pollution.
• Chemical Reactions: Some waste materials, such as batteries or chemicals, can react with other waste materials, generating heat or flammable gases that can ignite.
• Landfill Gas Ignition: Landfill gas, which is produced by the decomposition of organic materials in the landfill, can be flammable and can ignite if exposed to a source of ignition such as a spark.
• Arson: Unfortunately, some people intentionally set fires at landfill sites, either for personal gain or as an act of vandalism.
• Electrical Faults: Electrical equipment used at landfill sites, such as machinery or lighting, can malfunction or short-circuit, causing a fire.

Issues with Indian landfills

• Unhygienic disposal: In India, more than 90% of the MSW generated finds its way to landfill sites, often in the most unhygienic manner possible. The landfilling process of the municipalities is the most unorganized one.
• Large methane emission: India creates more methane from landfill sites than any other country, according to GHGSat, which monitors emissions via satellites. Methane is the second most abundant greenhouse gas after carbon dioxide — but it is a more potent contributor to the climate crisis because it traps more heat.
• Not scientifically planned: In India, the meaning of landfilling process has changed to simply dumping the waste in areas outside the city without taking any kind of sanitary measures.
• Causes environmental problems: The landfills are meant for reducing the exposure between humans and the environment from toxic waste but it takes a toll on humans as we are exposed to the problems associated with the waste directly i.e from the soil and groundwater pollution. There are concerns regarding the flow of toxins in the food chain of birds and animals, fires and explosions, vegetation damage, unpleasant odor, landfill settlement, groundwater pollution, air pollution and global warming.
• The improper segregation: or lack of segregation facility at the waste generation site causes the accumulation of toxic waste mixture in landfills.
• Most fatal for ragpickers: The disposal of these toxic chemicals leads to the exposure of rag pickers to these chemicals. The rag picker’s only means of income is by collecting waste but they are not aware of the fact that this waste will be toxic for them, their health as well as their surrounding.
• Catches fire: The chaotic landfills act as a ticking bomb and could create havoc by catching fire anytime. The mountain of waste catches fire when it surmounts the saturation point and no longer withstands the heat due to the pilling up of waste.
• Causes of health problems: The health problems related to various emissions from landfills include high PM10 exposure, breathing problems, bacterial infections, asthma, elevated cardiovascular risk, and other infections.
• Source of diseases: In India scenario, open dumps are highly prevailing which causes the breeding of mosquitoes, flies, rats, cockroaches, and other pests. Some diseases are very common in the population living near the landfill site such as plague, histoplasmosis, murine typhus, malaria, dengue, West Nile fever, etc. as they are caused by the pests breeding in the landfills.

Challenges faced while addressing the problem of MSW in India:

• Lack of Funding to address the MSW problem
• The communication gap between central and state government
• Failure of waste-to-energy recovery
• Implementation of rules and regulations
• There is a prevalence of loopholes in the municipal corporations at every stage of waste management i.e from source to disposal
• There is a lack of manpower and an insufficient number of professionals in the waste management technology field.
• Lack of research and development for new technological practices

Rules related to landfills

• The Solid Waste Management Rules issued by the Ministry of Environment, Forest and Climate Change in 2016 state that only non-recyclable, non-biodegradable and non-combustible waste should go to a sanitary landfill.

SWM Rules, 2016 mandates:

• setting up solid waste processing facilities by all local bodies having a population of 1 lakh or more within two years.
• census towns and local bodies with a population of less than 1 lakh have to set up a common or stand-alone sanitary landfill within three years. Also, common, or regional sanitary landfills will have to be set up by all local bodies and census towns with a population under 0.5 million within the timespan of three years.
• bio‐remediation or capping of old and abandoned dumpsites within five years. Bio-remediation or capping involves treating organic waste and spreading the remaining waste uniformly, over the land. It is then covered with a geo-textile layer, a geo-membrane and one-metre of soil so that grass can be grown on it.
• As per the new rules, the landfill site should be 100 metres away from a river, 200 metres from a pond, 500 metres away from highways, habitations, public parks and water supply wells and 20 km away from airports or airbases. The guidelines recommend that the construction of landfills on hills should be avoided.

How to better manage landfills in India? Way forward

• Dedicated solid waste management cell: Each city needs a dedicated solid waste management cell with appropriately qualified and trained professionals who come with varied backgrounds ranging from social work, science, engineering, and public health.
• Waste management audits: Understanding the challenges in the implementation of SWM Rules are equally important, for the administration to take appropriate corrective actions.
• Reduce Waste Generation: The most effective way to manage landfills is to reduce the amount of waste generated in the first place. This can be achieved through reducing, reusing, and recycling.
• Separation of Waste: Separating waste at the source can help reduce the amount of organic waste that ends up in landfills, as organic waste can be composted instead. This separation can be achieved through education and awareness programs, as well as through the implementation of separate waste collection systems.
• Landfill Design and Construction: Landfills should be designed and constructed to minimize their environmental impact. This includes lining the landfill with impermeable barriers to prevent leachate from contaminating the surrounding environment and installing systems to collect and control landfill gas.
• Monitoring and Maintenance: Regular monitoring and maintenance of landfills are necessary to ensure that they are operating effectively and to identify and address any issues promptly.
• Waste-to-Energy Technologies: Waste-to-energy technologies, such as incineration or gasification, can be used to convert waste into energy, reducing the amount of waste that ends up in landfills.
• Education and Awareness Programs: Education and awareness programs can help to encourage individuals and businesses to adopt waste reduction and separation practices and promote responsible waste management.
• Proper implementation of schemes: Initiatives such as the Jal Jivan Mission-Urban, Swacch Bharat Mission-Urban whose objectives include universal coverage of water supply and sanitation and waste management should be implemented properly.
• The emerging ‘new waste economy’: focused on circular practices and resource recovery offers livelihood and entrepreneurial opportunities if waste sector workers are formally integrated into waste management services, as in the case of Ahmedabad, Bengaluru and Pune.

Conclusion

• Urban solid waste management must be reimagined to eliminate such toxic garbage mountains in the future and existing sites must be remediated. Indian cities from Bengaluru to Alappuzha are slowly shifting to decentralized solid waste management approaches with household and community-level waste segregation and resource recovery solutions being implemented successfully.
• We need to understand, that we cannot get rid of waste or landfills until and unless we start source segregation, which is also one of the mandates and one of the first rules of solid waste management rules. A landfill will still be required but firstly, we need to build it in a scientific way and secondly, only inert waste should go to landfills. Even in the waste management pyramid, the top options are reusing and recycling. Landfills and waste-to-energy plants are the last options.

Context:

• A senior Congress and opposition leader have been disqualified from the Lok Sabha, a day after he was convicted in a defamation case by a Surat court.
• In this context, this edition of the burning issue will deal with the issue of disqualification of a Member of Parliament and defamation cases. The issue is very important for the upcoming Prelims 2023 examination as well as Mains 2023.

Background of the case

• The Congress leader during campaigning for the 2019 parliamentary polls had made a remark, “How come all the thieves have Modi as the common surname?”
• On the basis of this remark, a criminal defamation case was filed against him in a surat court by a BJP MLA who had alleged that the congress leader while addressing a poll rally in 2019 in Karnataka defamed the entire Modi community with his remark.
• The Surat court on Thursday convicted the Congress leader in a criminal defamation case and awarded him a two-year jail term.
• On basis of this, the Congress leader has been disqualified from the Lok Sabha,. A notice issued by the Lok Sabha Secretariat said that he stood disqualified from the House from March 23, the day of his conviction.

Disqualification of a Lawmaker

Disqualification of a lawmaker is prescribed in three situations-

• Under Constitutional provisions: Disqualification is through Articles 102(1) and 191(1) for disqualification of a member of Parliament and a member of the Legislative Assembly respectively. The grounds here include
• holding an office of profit,
• being of unsound mind or insolvent or
• not having valid citizenship.
• Under Anti-Defection law: It is in the Tenth Schedule of the Constitution, which provides for the disqualification of the members on grounds of defection.
• Under Representation of The People Act (RPA), 1951: It provides for disqualification for conviction in criminal cases and several other grounds.

Disqualification under RPA, 1951

The provision is aimed at “preventing the criminalisation of politics” and keeping ‘tainted’ lawmakers from contesting elections. There are several provisions that deal with disqualification under the RPA.

• Section 8 of the RPA deals with disqualification for conviction of offences.
• Section 8(1): First, disqualification is triggered for conviction under certain offences listed in Section 8(1) of The Representation of The People Act. This includes specific offences such as promoting enmity between two groups, bribery, and undue influence or personation at an election.
• Section 8(2) also lists offences that deal with hoarding or profiteering, adulteration of food or drugs and for conviction and sentence of at least six months for an offence under any provisions of the Dowry Prohibition Act.
• Section 8(3) states: “A person convicted of any offence and sentenced to imprisonment for not less than two years shall be disqualified from the date of such conviction and shall continue to be disqualified for a further period of six years since his release.”
• Section 9 deals with disqualification for dismissal for corruption or disloyalty, and for entering into government contracts while being a lawmaker.
• Section 10 deals with disqualification for failure to lodge an account of election expenses.
• Section 11, deals with disqualification for corrupt practices.
• Also, On 10 July 2013, the Supreme Court of India, in its judgment of the Lily Thomas v. Union of India case, decided that any MP, MLA or MLC who is sentenced for a crime and granted at least two years of imprisonment, loses membership of the House with immediate effect.

Appeal and stay of disqualification

• The disqualification can be reversed if a higher court grants a stay on the conviction or decides the appeal in favour of the convicted lawmaker.
• In a 2018 decision in ‘Lok Prahari v Union of India’, the Supreme Court clarified that the disqualification “will not operate from the date of the stay of conviction by the appellate court.”
• This means that Gandhi’s first appeal would be before the Surat Sessions Court and then before the Gujarat High Court.

Changes in the Law

• Under the RPA, Section 8(4) stated that the disqualification takes effect only “after three months have elapsed” from the date of conviction.
• Within that period, lawmakers could file an appeal against the sentence before the High Court.
• However, in the landmark 2013 ruling in ‘Lily Thomas v Union of India’, the Supreme Court struck down Section 8(4) of the RPA as unconstitutional.

The Lily Thomas Verdict

• The Lily Thomas verdict was a landmark judgment delivered by the Supreme Court of India in 2013.
• The verdict struck down a provision in the Representation of the People Act (RPA), which allowed convicted lawmakers to continue in office if they filed an appeal within three months of their conviction.
• The provision, which was part of Section 8(4) of the RPA, had been criticized for allowing convicted politicians to continue to hold public office while their appeals were pending in higher courts, and for contributing to the criminalization of politics in India. The verdict was seen as a major step towards cleaning up Indian politics and ensuring that convicted criminals do not get to occupy public offices.

Defamation in India

What is Defamation?

• Defamation refers to the act of publication of defamatory content that lowers the reputation of an individual or an entity when observed through the perspective of an ordinary man. Defamation in India is both a civil and a criminal offence.

The Laws which Deal with Defamation:

Sections 499 and 500 of IPC: Sections 499 and 500 in the IPC deal with criminal defamation. While the former defines the offence of defamation, the latter defines the punishment for it.

Section 499                       

• Whoever, by words either spoken or intended to be read, or by signs or by visible representations, makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is said, except in the cases hereinafter expected, to defame that person.

Section 500

• Whoever defames another shall be punished with simple imprisonment for a term which may extend to two years, or with fine, or with both.

Supreme court on defamation

• Supreme Court of India in the Subramanian Swamy case upheld the validity of the criminal defamation law.
• Court rules that defamation laws are not in conflict with the right to free speech.
• Court stated that notwithstanding the expansive and sweeping ambit of freedom of speech, as with all rights, the right to freedom of speech and expression is not absolute. It is subject to the imposition of reasonable restrictions

Why should it be retained?

• The Supreme Court declared that the right to free speech under Article 19(1)(a) had to be “balanced” against the right to “reputation” under Article 21.
• It has been part of the statutory law for over 70 years. It has neither diluted our vibrant democracy nor abridged free speech
• Protection for “legitimate criticism” on a question of public interest is available in the Civil law of defamation & Under exceptions of Section 499 IPC
• Mere misuse or abuse of law can never be a reason to render a provision unconstitutional rather lower judiciary must be sensitized to prevent misuse
• Monetary compensation in civil defamation is not proportional to the excessive harm done to the reputation

Why should it not be retained?

• “Constitutional fraternity” is not a part of Article 19(2) of the Constitution, which specifically limits the circumstances under which the state can restrict speech to eight enumerated categories.
• It is also nowhere in the fundamental rights chapter of the Constitution, so the question of “balancing” free speech against constitutional fraternity does not arise.
• Article 21 which is a shield to protect the individual against State persecution or indifference, is used as a sword to cut down on the fundamental right to freedom of speech and expression because of this provision.
• Freedom of speech and expression of media is important for a vibrant democracy and the threat of prosecution alone is enough to suppress the truth. Many times influential people misuse this provision to suppress any voices against them.
• Considering anecdotal evidence, every dissent may be taken as unpalatable criticism. Sections 499 and 500 of the IPC prescribe two years’ imprisonment for a person found guilty of defamation.

Conclusion

• As India continues to strengthen its democratic system, one important issue that needs resolution is determining the correct answer for when a disqualification is removed for a sitting member of parliament who has been granted a stay on their conviction.
• The conflicting court judgments and constitutional provisions only highlight the need for a clear and definitive resolution to this issue, which will undoubtedly enhance the credibility and legitimacy of the Indian political system.

Context

• Recently, the Supreme Court referred a batch of petitions seeking the legal recognition of same-sex marriages to a Constitution Bench.
• The Union government has opposed the petitions. Law Minister Kiren said that marriage is a matter of policy to be decided by Parliament and the executive alone.
• In this context, this edition of the Burning Issue will explain this issue and the arguments around it.

What is the issue?

• The Supreme Court had issued notice to the Centre Govt on a plea by two gay couples seeking recognition of same-sex marriage under the Special Marriage Act, 1954 in November 2022, asking for its stand on same-sex marriage.
• In response to this notice, the Union Government has recently filed an affidavit clarifying its stance on same-sex marriages.

What is meant by Same-sex marriage?

• Same-sex marriage is the legal recognition of a marriage between two individuals of the same sex.
• It grants same-sex couples the same legal and social recognition, rights, and privileges that are traditionally associated with marriage, including property rights, inheritance rights, and the ability to make decisions for each other in medical emergencies.
• The recognition of same-sex marriage varies around the world, with some countries legalizing it while others do not.
• The issue has been the subject of much debate and controversy, with arguments for and against same-sex marriage based on religious, cultural, social, and legal considerations.

Same-sex marriage in India

• Same-sex marriage is currently not legally recognized in India.
• Section 377 of the Indian Penal Code, which criminalized homosexuality, was struck down by the Supreme Court of India in 2018, which was a landmark decision for LGBTQ+ rights in the country.
• However, there is still no law that allows same-sex couples to legally marry or have any legal recognition of their relationships.

What is the Judicial basis for same-sex marriage?

Decriminalization of IPC section 377 in the Navtej Singh Johar & Ors. V. Union of India(2018)

• In this landmark verdict, the Supreme Court today scrapped the controversial Section 377– a 158-year-old colonial law on consensual gay sex.
• Section 377, which is part of an IPC 1861, banned “carnal intercourse against the order of nature with any man, woman or animal” — which was interpreted to refer to homosexual sex.
• The Supreme Court reversed its own decision and said Section 377 is irrational and arbitrary.
• The judgment was delivered by a Bench of Chief Justice of India Dipak Misra and Justices Rohinton Nariman, AM Khanwilkar, DY Chandrachud and Indu Malhotra.

What does the Government affidavit say?

The main points of the Government affidavit are:

• Heterosexual marriage has been the norm throughout history and is “foundational to both the existence and continuance of the state.”
• Marriage in India is regarded as a “holy union,” a “sacrament,” and a “sanskar,” and is dependent on customs, rituals, practices, cultural ethos, and societal values.
• Any “deviation” from the “statutorily, religiously and socially” accepted norm in “human relationships” can only happen through the legislature and not the Supreme Court.
• In its affidavit to the Supreme Court, the government argued that the traditional concept of marriage, consisting of a biological man, woman and child, cannot be disrupted.
• It claimed that recognizing same-sex marriages could cause havoc in the system of personal laws.
• As different from many liberal democracies, in India, aspects of marriage, succession and adoption are governed by religious personal laws.

Reasons behind the center’s opposition

• Legal revamp required: The registration of marriage of same-sex persons also results in a violation of existing personal as well as codified law provisions — such as ‘degrees of prohibited relationship’; ‘conditions of marriage’; ‘ceremonial and ritual requirements’ under the personal laws governing the individuals”.
• Definition of spouse: In a same-sex marriage, it is neither possible nor feasible to term one as ‘husband’ and the other as ‘wife’ in the context of the legislative scheme of various personal laws.
• Against cultural norms:  The social order in our Country is a religion based which views procreation as an obligation for the execution of various religious ceremonies.
• Property and other civil rights: Property rights post-marriage is a much-contested issue in India. Same-sex marriage will not create any immunity for the law but increase complex interpretations.
• Navtej case did not mention marriages: The 2018 Navtej Singh Johar judgment decriminalized homosexuality, but it did not mention/legitimize same-sex marriage.
• Not comparable to the heterosexual couple: Same-sex marriage cannot be compared to a man and woman living as a family with children born out of the union.
• Violation of existing personal laws: Registration of same-sex marriage would result in a violation of existing personal as well as codified law provisions.
• In the interest of society: There is a “compelling interest” for society and the state to limit recognition to heterosexual marriages only.

What stand do petitioners have?

Same-sex marriage as a matter of rights

• Any social policy is liable to judicial interference if rights are violated.
• The petitioners rely on the rights to equality and non-discrimination as laid out in Articles 14 and 15.
• The Constitution prohibits the state from discriminating based on sex.
• Sex has been interpreted by the Supreme Court in Navtej Singh Johar (2018) to include sexual orientation. Granting the right to marry heterosexual couples and not to homosexual couples discriminates on the basis of their sexual orientation.

Same-sex marriage is a matter of privacy

• Right to privacy: Supreme Court recognized this right to be part of the right to life and liberty under Article 21 of the Constitution in the celebrated Puttaswamy (2017) verdict.
• What the court said on privacy: Privacy includes at its core the preservation of personal intimacies, the sanctity of family life, marriage, procreation, the home and sexual orientation.
• The state currently denies this right: The right to privacy entails the right of the citizens to make decisions about their family life and marriage. The state currently denies same-sex couples this right.
• The Special Marriage Act: The Special Marriage Act is a secular law that works alongside religious personal laws. Same-sex marriages can be recognized under the Special Marriage Act. The Act already speaks of marriages between any two persons which are solemnized under it. Any two persons can include two persons of the same sex.

Special Marriage Act

• The Special Marriage Act is a law in India that allows individuals of different religions or nationalities to marry each other.
• It was enacted in 1954 and came into effect in 1955.
• The Special Marriage Act allows for inter-caste and inter-religious marriages, and couples who register under this act are not required to change their religion or follow any religious rites or rituals. However, the act does not recognise same-sex marriages.
• The act also provides for divorce on certain grounds and maintenance to the spouse and children.

Issues with such marriages

• Morality: This has brought with it a change in social attitudes so that the stigma attached to homosexuality has to a greater extent disappeared.
• Rising activism: Campaigns for lesbian and gay rights have taken on an increasingly radical character, arguing for an end to all forms of discrimination against homosexuality.
• Religious sanctions: Same-sex acts are punishable by death in Arab countries. No religion openly embraces same-sex marriage. More or less, they are considered unnatural everywhere.
• Social stigma:  Apart from the harsh legal scenario, homosexuals face social stigma as well. Same-sex marriages are still unimaginable as any instance of sexual relations between a couple of the same sex draws hatred and disgust.  
• Patriarchy: It must not be forgotten that Indian society is patriarchal in nature and the fact that certain women and men have different choices, which is not sanctioned by the ‘order’, frightens them in a way.
• Burden of collectivity: Our society is very community oriented and individualism is not encouraged in the least, any expression of homosexuality is seen as an attempt to renounce tradition and promote individualism.

Arguments in favor of such marriages

• Pursuit of happiness: Homosexuality is not an offense, it is just a way of the pursuit of happiness, a way to achieve sexual happiness or desire.
• Right to privacy: The fundamental right to liberty (under Article-21) prohibits the state from interfering with the private personal activities of the individual.
• Arbitrariness: Infringement of, the right to equal protection before the law requires the determination of whether there is a rational and objective basis to the classification introduced.
• Issues with the definition: Section-377 assumes that a natural sexual act is that which is performed for procreation. Hence, it thereby labels all forms of the non-procreative sexual act as unnatural.
• Discrimination: Section-377 discriminates based on sexual orientation which is forbidden under Article-15 of the Constitution. Article-15 prohibits discrimination on several grounds, which includes Sex.
• Human rights: The universal law of Human Rights states that social norms, tradition, custom or culture cannot be used to curb a person from asserting his fundamental and constitutional rights.
• Many countries recognizing: According to global think tank Council of Foreign Relations, same-sex marriages are legal in at least 30 countries, including the United States, Australia, Canada and France.

Parallels in west

• In Obergefell v Hodges (2015), the Supreme Court of the United States held that same-sex couples have a constitutional right to marriage.
• Thirty-one out of the 50 states in the United States have marriage laws that define marriage as between a man and a woman.
• In May 1996, South Africa became the first country to constitutionally prohibit discrimination based on sexual orientation.
• The United Kingdom passed the “Alan Turing law” in 2017 which ‘granted amnesty and pardon to the men who were cautioned or convicted under historical legislation that outlawed homosexual acts’.

Way forward

• Dissociating from religion: Such marriages are forbidden in almost every religion. Hence no single religion should be considered a hindrance in creating a legal sanction.
• Doing away with discrimination: The same-sex community needs an anti-discrimination law that empowers them to build productive lives and relationships irrespective of gender identity.   
• Letting the society evolve: Society has to imbibe the doctrine of progressive realization of rights and it cannot be forcibly convinced by law.
• Creating awareness: Certainly, this is not an overnight phenomenon. We are a society where the practice of Sati and Nikah halala was considered a religious order.
• Widen the scope of article 15 to include gender too: Article 15 secures the citizens from every sort of discrimination by the state, on the grounds of religion, race, caste, sex or place of birth or any of them. The grounds of non-discrimination should be expanded by including gender and sexual orientation.
• Sensitise the general public and officials: Justice Rohinton F. Nariman had directed in Navtej Singh Johar & Ors., the Government to sensitize the general public and officials, to reduce and finally eliminate the stigma associated with the LGBTQ+ community through the mass media and the official channels.
• Sensitise students: School and university students too should be sensitized about the diversity of sexuality to deconstruct the myth of heteronormativity. Heteronormativity is the root cause of hetero-sexism and homophobia.

Conclusion

• The debate on the legal recognition of same-sex marriages in India continues to be a contentious issue, with the government and petitioners presenting opposing views.
• However, given the complex social, cultural, and legal considerations, any decision regarding same-sex marriage should be carefully evaluated to ensure that it is inclusive and respects individual rights.
• Ultimately, it is important to arrive at a balanced and just solution that upholds the principles of equality and non-discrimination for all individuals, regardless of their sexual orientation.

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Context

• Two of West Asia’s major powers that have been at odds with each other for decades, Saudi Arabia and Iran, agreed to restore diplomatic relations last week in an agreement brokered by China. It is a major breakthrough if viewed from the angle of implications the agreement could have on the region and global geopolitics.
• In this context, this edition of the burning issue will elaborate on this agreement and its implications.

A Timeline of the Saudi-Iran relationship

• Pre-1979 Phase: Saudi Arabia and Iran compete for regional dominance.
• Iranian Revolution (1979) brings down the monarchy and turns Iran into a Shia theocratic republic.
• 1980-1988: Iran-Iraq war sees Saudi Arabia support Iraq.
• 1990-1991: Saudi Arabia supports Iraq against Iran in the Gulf War.
• 1996: Iranian-backed Hezbollah bombs Saudi military housing complex in Khobar, killing 19 US soldiers.
• 2011-2015: Saudi Arabia and Iran support opposing sides in the Syrian civil war.
• 2015: Saudi Arabia launches military intervention in Yemen against Iranian-backed Houthi rebels.
• January 2016: Saudi Arabia executes prominent Shia cleric Sheikh Nimr al-Nimr, leading to protests in Iran and the burning of the Saudi embassy in Tehran. Saudi and several Arab allies cut diplomatic ties with Iran.
• 2019: Saudi oil facilities are attacked, leading to increased tensions between Saudi Arabia and Iran.
• 2021: Both begin direct talks, brokered by China.
• March 2023: Both nations announce an agreement to restore diplomatic ties, brokered by China.

Reasons for hostile relations

• Religious contradictions: Historically, the rivalry between the two countries dates back to the seventh century when the Prophet Muhammad died without a clear successor, leading to a dispute over the leadership of the Muslim community. This dispute ultimately resulted in the split between Sunni Islam (which dominates in Saudi Arabia) and Shia Islam (which dominates in Iran).
• Geopolitical tensions: The two countries are located in a strategically important region, with both seeking to exert influence and maintain dominance in the Middle East. Iran’s Islamic revolution in 1979 posed a challenge to Saudi Arabia’s status as the leading Islamic power in the region, and the two countries have been competing for regional influence ever since.
• Sectarian tensions: Saudi Arabia and Iran have long had competing visions for the role of Islam in society. Saudi Arabia promotes a strict interpretation of Sunni Islam known as Wahhabism, while Iran supports Shia Islam and the principle of the “Guardianship of the Jurist,” which asserts that a senior Shia cleric should have political power and authority over all Muslims.
• Ties with west: The two countries have fundamentally different views on a range of issues, including democracy, human rights, and regional security. Saudi Arabia is a conservative monarchy with close ties to the United States, while Iran is an Islamic republic that has been at odds with the West since the 1979 revolution.

What are the terms of the agreement?

• The details of the agreement are yet to be unveiled but prima facie it seems to be a quid pro quo.
• Iran has reportedly agreed to prevent further attacks against Saudi Arabia from Houthi-controlled parts of Yemen
• On the other hand, Saudi Arabia has agreed to rein in Iran International, a Farsi news channel critical of the Iranian regime.
• Foreign Ministers of both countries will meet soon to thrash out the terms of the reconciliation before reopening embassies in each other’s capitals in two months.

Why did Saudi Arabia reach out to Iran, defying its ally the US?

• Internal Security: When Saudi oil facilities were attacked in 2019, the US looked away, prompting the Saudis to look for alternative solutions to the Iran problem, such as reaching out to the Iranians.
• Differences over Palestine: The US was trying to broker a normalization agreement between Saudi Arabia and Israel to bring the two pillars of its West Asia policy together against Iran.
• US negligence of West Asia: The US deprioritized West Asia due to bigger foreign policy challenges, such as the Russian war in Ukraine and China’s rise in the Indo-Pacific.
• Obsolesce of ties with the US: Relations between Saudi Arabia and the US have been rocky in recent years, as the US is not as dependent on Gulf Arabs as it used to be during the Cold War.
• Shared opinions over Israel: Saudi Arabia has been hesitant to reconcile with Israel, and its relations with the US have been rocky in recent years.

What led Iran to accept the deal?

• Isolation and Domestic pressure: Tehran is aware that getting relief from Western sanctions is not a near-term possibility. Despite the crackdown, protests in Iran refuse to die down.
• Crumbling economy: Iran’s economy is deteriorating and its currency, the rial, is struggling. A deal with Saudi Arabia, under China’s mediation, could open economic lifelines for Iran
• China factor: Iran wanted Chinese investments and support for the rial. China allowed Iran to withdraw parts of the $20 billion funds frozen with Chinese banks due to US sanctions.
• Fouling American efforts: Iran knows that such a deal could complicate American efforts to rally Arab countries and Israel against it. A reconciliation with Saudi is beneficial for Iran, at least in a tactical sense.

Why is China brokering the deal?

• Securing its oil supplies: China has an interest in promoting stability in the Middle East region, which is a major source of oil and natural gas for China.
• Side-lining the US: By brokering a deal between Saudi Arabia and Iran, China can position itself as a mediator and gain goodwill from both sides.
• Create an alternative axis: China has longstanding relationships with both countries. US since Trump’s departure is distancing itself from the US, whereas China is also getting closer to Russia amid the war.
• Image building as a leader: While the US is busy rallying the Western world to arm Ukraine to push back Russia and weaken Moscow through sanctions, China is quietly brokering peace in the Global South.
• Growing role in the Middle East: China could step in and help the two parties reach an agreement because its dramatic economic rise has given it a growing role in the Middle East.
• Narrow approach of the US for the region: The United States, by contrast to china, has “special relationships” with some countries in the Middle East and no relationship at all with others, most notably Iran. The result is that client states such as Egypt, Israel, or Saudi Arabia take U.S. support for granted and treat its concerns with ill-disguised contempt

“That’s how a great power maximizes its leverage: You make it clear that you’re willing to work with others if they are willing to work with you, and your ties with others remind them that you have other options, too”

Key implications for the US

• Welcomed the move: The public narrative is that the peace deal would help stabilize the region and benefit the global energy market.
• It is a wake-up call: for the Biden administration and the rest of the United States’ foreign-policy establishment because it exposes the self-imposed handicaps that have long crippled U.S. Middle East policy.
• China as a force of peace: It also highlights how China is attempting to present itself as a force for peace in the world, a mantle that the United States has largely abandoned in recent years.
• Hegemony decline in the region: The US would not like to lose its influence in West Asia even when it is deprioritizing the region.
• Saudi may drift away: the US sees an ally (Saudi Arabia) drifting further away, a rival it wanted to contain (Iran) making new friends, and China spreading and deepening its influence in a region the US has dominated historically.
• Iran Sanctions going loose: The Iran nuclear deal is practically dead and the US wants Saudi Arabia to normalize ties with Israel and put up a joint front against Iran.
• The US should change its policy towards the region: The obvious lesson for the Biden administration is to devote more attention to defusing tensions, preventing wars, and ending conflicts, instead of defining foreign-policy success by how many wars it wins, how many terrorists it kills etc. If the United States allows China to establish a reputation for being a reliable peacemaker, as a great power that is willing to live and let live in its relations with others, convincing others to line up with the US will become increasingly difficult.

Possible Outcomes of the deal

• Dispute resolution without the US: Besides bolstering China’s diplomatic credentials and possibly lowering the temperature between two well-armed rivals, the agreement gives all three nations involved the chance to show that one can resolve issues without US engagement, something China and Saudi Arabia have been keen to demonstrate.
• For Iran — still under punishing sanctions for its nuclear program and facing criticism for its crackdown on protesters — the agreement will help it repair ties with more Arab nations. Economically it could benefit both Iran and Saudi Arabia by luring more Chinese investment. And the deal could even help foster peace in Yemen, riven by a civil conflict that has been seen as a proxy war between Tehran and Riyadh.
• For Saudi Arabia: Yet the agreement also sets up an interesting balancing act for Crown Prince Mohammed, who has helped turn his economy more toward Asia while chaffing at US criticism of his nation’s human rights record. But Saudi Arabia still relies on US firepower for its military, a reality unlikely to change anytime soon. And the deal risks a fragile working relationship the Saudis — tacitly backed by Washington — have built with Israel, which still considers Iran enemy No. 1.
• For Yemen: The deal renewing diplomatic relations between Saudi Arabia and Iran had barely been signed on March 10 in Beijing when all eyes turned to Yemen, where the two rival powers have been in indirect confrontation since 2015. The surprise agreement between the two Middle Eastern powers may have its most concrete impact in Yemen, which has been ravaged by a war between its government, supported by a Saudi-led military coalition, and Houthi rebels supported by Iran.

Implications for India

• Beijing’s strategic footprint will grow in the Indian Ocean: The China-backed Saudi Arabia-Iran detente and its expanding strategic levers in Islamic World with ports in Iran, Oman, UAE, Pakistan and Sri Lanka is designed to choke India in its own Indian Ocean backyard with New Delhi facing a possible action from Beijing over its close relations with its QUAD partners, two of which are in the AUKUS alliance, on its northern land frontiers.
• Iran further moving away from India: There is little doubt that while India has been successful in expanding its relations with all key actors in West Asia, it has ended up with diminished relations with Iran. It is not in its interest to see China entrench itself in a country that is strategically important, quite apart from being one with which we enjoy long-standing civilizational affinities
• Security of energy: Since Iran and Saudi Arabia produce the majority of the world’s oil, a conflict between them could push up oil prices, which would have a significant impact on India’s energy security. The steady supply of oil to India and the stabilization of global oil prices could both result from normalizing relations between these two nations.
• Trade: India has significant trading relationships with Saudi Arabia and Iran. India could benefit from new trade and investment opportunities if their relations were normalized.
• Stability in the region: The International North-South Transport Corridor (INSTC) is one of India’s most important economic and strategic interests in the Middle East.
• Stability in India’s extensive neighbourhood: which includes Iran. For India, any instability in the region could have far-reaching effects. Iran’s ties to Saudi Arabia could help stabilize the region and lessen the likelihood of terrorism and conflict. India contributes significantly to the maintenance of regional peace and stability by maintaining cordial relations with Saudi Arabia and Iran.

What inferences can be drawn from all these?

• Strategic realignments in West Asia: It can be inferred that West Asia is currently undergoing significant strategic realignments, with the UAE normalizing relations with Israel and other Arab countries deepening their partnerships.
• Shifted US focus on Ukraine and Indo-Pacific: The US, which traditionally held significant power in the region, has deprioritized West Asia due to bigger foreign policy challenges such as Russia’s war in Ukraine and China’s rise in the Indo-Pacific.
• China occupying power vacuum: This de-prioritization has created a power vacuum that has allowed Iran to rise as a challenge, prompting the US to try to bring Israel and the Arab world together against Iran.
• When the elephants fight, the grass suffers:” In the decades to come, many states will prefer to rally behind whichever major power seems more likely to promote peace, stability, and order. By the same logic, they will tend to distance themselves from whichever major powers they believe are disturbing the peace.

Conclusion

• Reduced tension between Saudi Arabia and Iran is a positive development that reduces the risk of a serious clash in a strategic region.
• This new détente is to be welcomed, therefore, even if Beijing gets some of the credit. The proper U.S. response is not to bemoan the outcome; it is to show that it can do as much or more to create a more peaceful world.
• However, India must be ready to deal with Beijing translating economic might into diplomatic wins.

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Context

• Startup-focused lender SVB Financial Group on March 10 became the largest bank to fail since the 2008 financial crisis, in a collapse that roiled global markets. Regulators had abruptly shut down Signature Bank to prevent a crisis in the broader banking system.
• In this context, this edition of the burning issue will talk about this crisis, scenarios which could emerge, how India will be impacted by it and how the government is responding to the situation.

About Silicon Valley Bank

• It is a financial institution that provides banking services to the technology industry and venture capital firms.
• Founded in 1983, it has since become the go-to bank for startups and entrepreneurs in Silicon Valley and beyond.
• It is unique in that it understands the specific needs and challenges of the tech industry, and provides a range of services that cater to startups, including loans, deposits, and investment management.
• It has become a critical player in the startup ecosystem, providing funding and financial services to many of the world’s most successful startups, including Tesla, Uber, and LinkedIn.

Why did it collapse?

• Heavy investment in government bonds: During the period of near-zero interest rates, SVB invested billions of dollars in US government bonds. What appeared to be a safe investment quickly unravelled as the Federal Reserve aggressively raised interest rates to combat inflation.
• A decline in bond prices: Bond prices decline when interest rates rise, hence the rate increase undermined the value of SVB’s bond holdings. According to Reuters, the portfolio was yielding an average of 1.79% last week, well below the 10-year Treasury yield of roughly 3.9%.
• Customers panicking: SVB disclosed that it had sold a slew of securities at a loss and would sell $2.25 billion in new shares to plug a hole in its finances. Customers panicked, and they withdrew enormous sums of money.
• Bank’s Stock prices plummeted: The bank’s stock fell 60% dragging down rival bank shares as investors began to fear a replay of the global financial catastrophe a decade and a half ago.
• Regulators stepped in: Trading in SVB shares had ceased and the company had abandoned efforts to raise funds or find a buyer. California regulators stepped in, closing the bank and placing it in receivership under the Federal Deposit Insurance Corporation, which normally entails liquidating the bank’s assets to repay depositors and creditors.
• A case of liquidity risk: The case represents a classic case of an economic crisis situation called liquidity risk. Liquidity risk is the risk that a bank won’t be able to meet its obligations when they come due without incurring losses.

Reasons for SVB’s downfall

• A downturn of tech stocks: The bank was hit hard by the downturn in technology stocks over the past year as well as the Federal Reserve’s aggressive plan to increase interest rates to combat inflation.
• Lower bond yield due to lower interest rates: SVB bought billions of dollars’ worth of bonds over the past couple of years, using customers’ deposits as a typical bank would normally operate.
• Mostly startup account holders: SVB’s customers were largely startups and other tech-centric companies that started becoming needier for cash over the past year.
• Drying VC funding: Venture capital funding was drying up, and companies were not able to get additional rounds of funding for unprofitable businesses.
• Fear over deposit insurance: Since its customers were large businesses and the wealthy, they likely were more fearful of a bank failure since their deposits were over $250,000, which is the government-imposed limit on deposit insurance.

Is this a start of a banking crisis?

• The demise of both Silicon Valley Bank and Signature Bank put a spotlight on the challenges surrounding small and midsize banks, which tend to focus on niche businesses and can be more vulnerable to bank runs than larger peers.
• The most immediate concern is that the failure of one would scare off customers of other banks. Both Silicon Valley Bank and Signature are small compared with the nation’s largest banks — Silicon Valley Bank’s $209 billion and Signature’s $110 billion in assets pale next to the more than $3 trillion at JPMorgan Chase. But bank runs can happen when customers or investors panic and start pulling their deposits.
• Shares of bigger banks were not affected as much. All banks face interest rate risk today on some of their holdings because of the Fed’s rate-hiking campaign. This has resulted in $620 billion in unrealized losses on bank balance sheets as of December 2022.
• But most banks are unlikely to have significant liquidity risk.

Implications

• The collapse of Silicon Valley Bank and Signature Bank made a huge impact on global finances as stocks have lost $465 billion in market value so far.
• Startups scramble: Many startups and other companies that relied on the bank’s services were suddenly left without access to their funds, which caused financial strain and uncertainty for these businesses.
• Ripple effect: They now fear that they might have to pause projects or lay off or furlough employees until they could access their funds.
• Huge uninsured deposits: The vast majority of these were uninsured due to its largely startup and wealthy customer base.
• No scope for asset reconstruction: There is no potential buyer of Silicon Valley Bank.

How India could be impacted?

• SVB has invested in around 21 Indian start-ups including Paytm, Paytm Mall, Shaadi.com, CarWale, Naaptol, and One97 Communications – though the amount remains unclear. But according to the data, SVB has no ‘significant investments in Indian start-ups post-2011.
• For Indian mutual fund investors who have exposure to international mutual funds and international hybrid mutual funds, this news is not a good news.

Impact on Indian startups

• Uncertainty over deposits: The failure of SVB is likely to have a ripple effect on Indian startups, many of which have significant amounts of funds deposited with the bank.
• Hamper the funding: SVB has been a major player in the Indian startup ecosystem, providing banking services and funding to many of the country’s most successful startups, including Flipkart, Ola, and Zomato.
• Ripple effect: This could lead to a cash crunch for many companies, which may be forced to cut costs, delay projects, or lay off employees.
• Reduce global footprints: SVB has also been instrumental in helping Indian startups expand into the US market, by providing them with the necessary infrastructure and support to set up operations in Silicon Valley.

India’s resilience

• The risk remains quite low: as Indian banks are well-capitalised. RBI’s Financial Stability Report noted that even under a severe stress scenario, the capital adequacy ratio of banks is likely to remain within the mandated range.
• Improve with time: Some Indian startups with exposure to SVB may face difficulty in funding day-to-day operations as their funds remain locked. FDIC will facilitate withdrawals, but it may take time.
• Government lending support: Indian Government has indicated that it will meet Indian startups this week to understand the impact of SVB Financial’s collapse on them and how the government can help during the crisis.

Learnings from this bank’s failure

• Question the Trump-era deregulation of banks: The crisis brings into question the Trump-era deregulation of banks such as the decision to roll back Dodd-Frank’s ‘too big to fail’ rules, reducing both oversight and capital requirements. Both seem to have contributed to SVB’s collapse. It appears that the deregulation has allowed banks such as Silicon Valley Bank to take reckless risks. Now there needs to be a serious conversation about reversing the law to shore up confidence and avoid further collapses.
• Pause on its rate hike programme: It is now doubtful that the Fed will continue with its plan for aggressive interest rate hikes. The next hike was widely expected on 22 March following robust jobs data in January and February. The stress in the banking sector, and the wider impact on confidence, will now give the central bank cause for pause on its rate hike programme.
• Praise for RBI: The Reserve Bank of India (RBI) deserves credit for how it handles the Indian banking system. Time and again and in each global crisis, it gets proven that Indian banks are tightly regulated, which ensures that there are no major shocks.
• To be fair, most Indian banks are safe, at most times. And the reason is that the RBI monitors them very closely and forces them to take corrective actions proactively if there is something amiss. But still, all banks are not the same.

Conclusion

• When an ecosystem collapses, like the crypto, start-ups and PEs, some casualties are bound to happen. The meltdown could be in its final leg and collateral damage has hit market sentiments.
• But this will not last long and may be closer to a panic bottom in the markets.

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