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  • What is the ‘Top 25’ drive initiated by Mumbai police?

    The Mumbai police have started a drive titled ‘Top 25’ aimed at keeping under check history-sheeters and those they believe could create trouble.

    Preventive detention laws in India have come to be associated with gross and frequent misuse.

    What is the ‘Top 25’ drive of the Mumbai police?

    • The Mumbai police commissioner has asked all police stations in the city to make a list of the “top 25” criminals and ask them to sign a bond of good behavior failing which they would have to pay a fine.
    • The aim is to rein in criminal elements and those the police believe could create a law and order problem in the city.
    • While this practices that is termed “chapter proceedings” has been followed in the past, the amount a person would usually forfeit was around Rs 10,000 – Rs 15,000.
    • Now, the amount has been raised up to Rs 50 lakh.

    How is the police calculating the surety amount now?

    • The police are now going through the bank details and tax returns of the person and the surety amount is set in accordance with the annual income of the offender or his family.
    • The police believe that the threat of having to pay a high amount will act as a deterrent and that a few thousand as surety amount did not have the desired effect.

    What are Chapter Proceedings?

    • Chapter proceedings are preventive actions taken by the police if they fear that a particular person is likely to cause law and order trouble.
    • These proceedings are unlike punitive action taken in case of an FIR with an intention to punish.
    • Here, the police can issue notices under sections of the Code of Criminal Procedure to ensure that the person is aware that creating a nuisance could result in action against him.
    • Recently, the Mumbai police initiated chapter proceedings against an extremely chauvinistic news reporter and media head.

    Rights of the accuse

    • On receiving such notice, a person can appeal before the courts.
    • In fact, in the past, courts have come down strongly against chapter proceedings in some cases.
    • In 2017, while striking down a notice issued to the owner of a bar, the Bombay High Court said: “chapter proceedings cannot be initiated on the basis of an incident of trivial nature”.

    Back2Basics: Arrest vs. Preventive Detention

    An ‘arrest’ is done when a person is charged with a crime. An arrested person is produced before a magistrate within the next 24 hours. In case of preventive detention, a person is detained as he/she is simply restricted from doing something that might deteriorate the law and order situation.

    • Article 22 of the Indian Constitution provides safeguards against the misuse of police powers to make arrests and detentions.
    • Clause (2) of Article 22 reads that every person who is arrested and detained in custody shall be produced before the nearest magistrate within a period of twenty-four hours of such arrest excluding the time necessary for the journey.
    • Clause (4) of the article states that no individual can be detained for more than 3 months unless a bench of High court judges or an Advisory board decides to extend the date.
    • Clause (5) states that the detained individual should be made aware of the grounds he/she has been detained (in pursuance of the order) and should provide him/her with an opportunity of making a representation against the case.
    • Parliament may by law prescribe the circumstances under a person may be detained for a period longer than three months under any law.

  • What are Off-Budget Borrowings?

    Finance Minister is all set to present the Union Budget 2021 on February 1st with all eyeing on off-budget borrowings to reduce Fiscal Deficit.

    Try this PYQ:

    With reference to the Union Government, consider the following statements:

    1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
    2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
    3. All the disbursements made from Public Account also need authorization from the Parliament of India.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

    What are off-budget borrowings?

    • Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution that borrows on the directions of the central government.
    • Such borrowings are used to fulfill the government’s expenditure needs.
    • Such borrowings are a way for the Centre to finance its expenditures while keeping the debt off the books — so that it is not counted in the calculation of fiscal deficit.
    • But since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal deficit. This helps keep the country’s fiscal deficit within acceptable limits.
    • As a result, a CAG report of 2019 pointed out that this route of financing puts major sources of funds outside the control of Parliament.

    Eyes on fiscal deficit

    • One of the most sought after details in any Union Budget is the level of fiscal deficit.
    • It is essentially the gap between what the central government spends and what it earns. In other words, it is the level of borrowings by the Union government.
    • This number is the most important metric to understand the financial health of any government’s finances.
    • As such, it is keenly watched by rating agencies — both inside and outside the country. That is why most governments want to restrict their fiscal deficit to a respectable number.
    • One of the ways to do this is by resorting to “off-budget borrowings”.

    How much would the borrowings be?

    • According to the last Budget documents, in the current financial year, the Centre was set to borrow Rs 5.36 lakh crore.
    • However, this figure did not include the loans that public sector undertakings were supposed to take on their behalf or the deferred payments of bills and loans by the Centre.

    How are off-budget borrowings raised?

    • Issuance of Bonds: The government can ask an implementing agency to raise the required funds from the market through loans or by issuing bonds.
    • Utilizing savings: For example, the food subsidy is one of the major expenditures of the Centre. In the Budget presentation for 2020-21, the government paid only half the amount budgeted for the food subsidy bill to the Food Corporation of India. The shortfall was met through a loan from the National Small Savings Fund.
    • Borrowing: Other PSUs have also borrowed for the government. For instance, public sector oil marketing companies were asked to pay for subsidized gas cylinders for PM Ujjwala Yojana beneficiaries in the past.
    • Bank sources: Public sector banks are also used to fund off-budget expenses. For example, loans from PSU banks were used to make up for the shortfall in the release of fertilizer subsidy.

    Its implications

    • Given the various sources of off-budget borrowing, the true debt is difficult to calculate.
    • For instance, it was widely reported that in July 2019, just three days after the presentation of the Budget, the CAG (cumulative aggregate growth) pegged the actual fiscal deficit for 2017-18 at 5.85% of GDP instead of the government version of 3.46%.

  • Amendment to the CSR Rules

    The Corporate Affairs Ministry has amended the rules for Corporate Social Responsibility (CSR) expenditure to allow companies to undertake multi-year projects, and also require that all CSR implementing agencies be registered with the government.

    Q.What do you mean by CSR? Discuss the role of CSR activities in social transformation.

    What is Corporate Social Responsibility (CSR)?

    • CSR is a type of business self-regulation that aims to contribute to the societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.
    • It rests on the ideology of “give and take” i.e. to take scarce resources from the environment for running a business, and in turn to contribute towards economic, social, and environmental development.

    CSR in India

    • India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to the Companies Act, 2013 in April 2014.
    • Businesses can invest their profits in areas such as education, poverty, gender equality, and hunger as part of any CSR compliance.

    All companies with a net worth of Rs 500 crore or more, a turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more, are required to spend 2 per cent of their average profits of the previous three years on CSR activities every year.

    What are the new amendments?

    • The amended CSR rules allow companies to set off CSR expenditure above the required 2 percent expenditure in any fiscal year against required expenditure for up to three financial years.
    • There lies an ambiguity whether the rule would apply for expenditure undertaken prior to the amendment.
    • The government is thus allowing corporates that have in good faith incurred excess CSR expenditure in the past to set it off against future CSR expenditure requirements.

    Other key changes

    • The amended rules require that any corporation with a CSR obligation of Rs 10 crore or more for the three preceding financial years would be required to hire an independent agency to conduct an impact assessment of their entire project with outlays of Rs 1 crore or more.
    • Companies will be allowed to count 5 percent of the CSR expenditure for the year up to Rs 50 lakh on impact assessment towards CSR expenditure.

    What are the changes required for implementing agencies?

    • The new amendment restricts companies from authorizing either a Section 8 company or a registered public charitable trust to conduct CSR projects on their behalf.
    • A Section 8 company is a company registered with the purpose of promoting charitable causes, applies profits to promoting its objectives, and is prohibited from distributing dividends to shareholders.
    • Further, all such entities will have to be registered with the government by April 1.

    Impact of the move

    • The change would impact CSR programs of a number of large Indian companies that conduct projects through private trusts.
    • It would mean such private trusts would either have to be converted to registered public trusts or stop acting as CSR implementing agencies.

  • ‘The Inequality Virus’ Report

    The ‘Inequality Virus Report’ was recently released on the opening day of the World Economic Forum in Davos.

    About the report

    • The Inequality Virus Report was released by Oxfam.
    • It inquired into different forms of inequities, including educational, gender and health during the pandemic.

    Highlights of the report

    ‘Rise’ in wealth

    • Indian billionaires increased their wealth by 35% during the lockdown to ₹ 3 trillion, ranking India after the U.S., China, Germany, Russia and France.
    • The wealth of just the top 11 billionaires during the pandemic could easily sustain the MGNREGS or the Health Ministry for the next 10 years, stated the report.
    • A person (no citation needed!) who emerged as the richest man in India and Asia, earned ₹90 crores an hour during the pandemic when around 24% of the people in the country were earning under ₹ 3,000 a month during the lockdown.
    • The increase in his wealth alone could keep 40 crores, informal workers, out of poverty for at least five months, said the report.

    Observations made

    Health: Only 6% of the poorest 20% have access to non-shared sources of improved sanitation, compared to 93.4 % of the top 20 %.

    Education: Till October, 32 crores students were hit by the closure of schools, of whom 84 % resided in rural areas and 70 %attended government schools. Dalits, Adivasis and Muslims were likely to see a higher rate of dropout. Girls were also most vulnerable as they were at risk of early and forced marriage, violence and early pregnancies, it noted.

    Gender: Unemployment of women rose by 15% from a pre-lockdown level of 18 %, which could result in a loss of India’s GDP of about 8 % or ₹15 trillion. Women who were employed before the lockdown were also 23.5 percentage points less likely to be re-employed compared to men in the post lockdown phase.

    Recommendations

    • It recommended reintroducing the wealth tax and affecting a one-time COVID-19 cess of 4% on taxable income of over ₹10 lakh to help the economy recover from the lockdown.
    • According to its estimate, a wealth tax on the nation’s 954 richest families could raise the equivalent of 1% of the GDP.

  • What is Herd Immunity?

    The initial findings of the fifth round of serological survey conducted in Delhi suggest that over 56 percent of the people have developed antibodies against Covid-19 implying achievement of herd immunity.

    Herd Immunity

    • Herd immunity is when a large number of people are vaccinated against a disease, lowering the chances of others being infected by it.
    • When a sufficient percentage of a population is vaccinated, it slows the spread of disease.
    • It is also referred to as community immunity or herd protection.
    • The decline of disease incidence is greater than the proportion of individuals immunized because vaccination reduces the spread of an infectious agent by reducing the amount and/or duration of pathogen shedding by vaccines, retarding transmission.
    • The approach requires those exposed to the virus to build natural immunity and stop the human-to-human transmission. This will subsequently halt its spread.

    Sero-surveys in Delhi

    • The results of the latest serosurvey in Delhi have led researchers and experts to surmise that a large section of the city’s population has already developed antibodies against Covid-19.
    • The presence of antibodies among a large percentage of the population could be a reason for the decline in the daily number of Covid-19 cases.
    • As more people are able to resist infection, it will help to break the chain of transmission of the virus.
    • Five serological surveys have been carried out in Delhi so far, including the present one, which was conducted in January.
    • The survey conducted by NCDC in July last year suggested the presence of antibodies in 23 percent of those surveyed.
    • In August, the survey conducted by the Delhi government showed 29.1 percent had antibodies.

    The relevance of such surveys

    • Carrying out repeated serological surveillance on the same population gives an idea of how the disease is behaving.
    • It is always good to have surveillance regularly to understand the trends.
    • Having robust surveillance is always beneficial, it may not be too close, but it may help us in giving an idea, even of the natural history of the disease.

    What do the data suggest about herd immunity?

    • Many researchers believe that if 60 percent or more of the population has developed antibodies against Covid-19, there is a possibility of acquiring herd immunity.
    • In Delhi, it is quite indicative, as the number of cases is also going down. This shows that we are moving closer towards acquiring herd immunity.

  • Leveraging government-private thought partnerships

    Thought partnership between government and the external players can aid in informed policymaking. The article deals with these issues and suggest forging of more of such partnerships. 

    Government working together with external partners

    • Policymaking requires multiple rounds of consultations and co-working with different entities, including collaboration between the government and external partners.
    • Over the last few years, there has been increasing evidence of the government and external partners working together on complex policy problems.
    • The government has formalized the induction of private individuals into the system by opening up lateral entry.
    • Several central government ministries and entities, such as NITI Aayog, routinely recruit private individuals as consultants, officers on special duty, or young professionals.
    • Given the staggering vacancies in the central government, such support is critical since civil servants are generally overburdened and under-resourced.

    What is thought partnership and how it works

    • Thought partnerships are a structured mechanism for private entities to lend relevant strategic expertise to the government on policy design, evaluation, and implementation.
    • It is also not always feasible for the government itself to fund projects involving private partners, more so when such projects are unconventional thought partnerships.
    • Several domestic and international philanthropies and impact investing firms are already investing in critical sectors in developing countries including India.
    • However, much of this funding goes into supporting projects or interventions that work in limited, contextual settings rather than systemic or sectoral transformation programs.
    • It is here that philanthropies and impact investing firms can make a huge difference.

    Past thought partnerships

    • In 2005, the Ashok Lahiri Committee report stated that there was not enough knowledge about external capital flows and controls in India.
    • The committee’s recommendation resulted in the establishment of the National Institute of Public Finance and Policy, Department of Economic Affairs research program.
    • The program led to the creation of a rich body of world-class research on capital controls and flows in India that was used to inform government policy on the matter.
    • In 2015, the Ministry of Corporate Affairs constituted a research secretariat headed by the Vidhi Centre for Legal Policy, to support the Companies Law Committee to make “informed decisions”.
    • The National Institute of Financial Management is working with the Department of Economic Affairs to provide legal research and technical assistance on Indian and foreign financial markets, policy analysis, formulation as well as the conduct of impact assessment studies on decisions taken by the Securities and Exchange Board of India.

    Consider the question “What is thought partnership and how it could help in making informed policymaking? What are the challenges in forging thought partnerships?”

    Conclusion

    It is in the public interest that more thought partnerships are forged and funded to channel external expertise and skills towards finding scalable solutions to the pressing policy challenges the country faces.

  • Intergovernmental Negotiations (IGN) at UNSC

    Seeking urgent reform of the United Nations Security Council (UNSC), India has highlighted the failure of the Intergovernmental Negotiations (IGN) since 13 years of its establishment.

    Note various countries in the various groups.

    What is the news?

    • India, along with Brazil, Japan and Germany are pressing for urgent reform of the UNSC and for a permanent seat in the reformed 15-member top organ of the world body.
    • India has said that the UNSC is finding itself unable to act effectively to address increasingly complex issues of international peace and security.
    • The UNSC lacks inclusivity of those who need to be members of the powerful organ of the world body.

    What is IGN?

    • The Intergovernmental Negotiations framework or IGN is a group of nation-states working within the United Nations to further reform of the UNSC.
    • The IGN is composed of several different international organizations, namely:
    1. African Union (55 member states)
    2. G4 nations (Brazil, Germany, India and Japan)
    3. Uniting for Consensus Group (UfC), also known as the “Coffee Club” (it aims to counter the bids for permanent seats proposed by G4 nations, includes Pakistan, Turkey, Canada, Spain and Italy)
    4. L69 Group of Developing Countries ( it includes developing countries from Africa, Latin America and the Caribbean, Asia and the Pacific)
    5. Arab League (six members: Egypt, Iraq, Jordan, Lebanon, Saudi Arabia, and Syria) and
    6. Caribbean Community ( a group of 15 member countries called CARICOM)

  • What is Non-price Competition?

    Data privacy can take the form of non-price competition and abuse of dominance can lower privacy protection, a study by the Competition Commission of India (CCI) has said.

    Try this PYQ:

    Q.Right to Privacy is protected as an intrinsic part of Right to Life and Personal Liberty. Which of the following in the Constitution of India correctly and appropriately imply the above statements?

    (a) Article 14 and the provisions under the 42nd Amendment to the Constitution

    (b) Article 17 and the Directive Principles of State Policy in Part IV

    (c) Article 21 and the freedoms guaranteed in Part III

    (d) Article 24 and the provisions under the 44th Amendment to the Constitution

    What is Non-price Competition?

    • Non-price competition is a marketing strategy “in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship”.
    • It often occurs in imperfectly competitive markets as it exists between two or more producers that sell goods and services at the same prices but compete through non-price measures.
    • Such measures include marketing schemes and greater quality or any sustainable competitive advantage other than price.

    What is CCI’s observation?

    • The CCI study made observations about non-price factors such as quality of service (QoS), data speeds etc. which are likely to be the new drivers of competitive rivalry between service providers in the telecom sector.
    • CCI noted that an aspect of data in the context of competition in digital communications market is the conflict between allowing access and protecting consumer privacy.

    Privacy at stake

    • Abuse of dominance can take the form of lowering the privacy protection and therefore fall within the ambit of antitrust as low privacy standard implies lack of consumer welfare.
    • Privacy can take the form of non-price competition, said the CCI.
    • On other non-price factors of competition, CCI found that consumers ranked network coverage at the top followed by customer service despite their Privacy.

  • What is The Great Reset?

    This news card is an excerpt from the original article published in The Indian Express and is articulated by C. Raja Mohan.

    The Great Reset

    • The Great Reset is a proposal by the World Economic Forum (WEF) to rebuild the economy sustainably following the COVID-19 pandemic.
    • It was unveiled in May 2020 by the United Kingdom’s Prince Charles and WEF director Klaus Schwab.

    The basis for the said reset

    • It is based on the assessment that the world economy is in deep trouble.
    • Schwab has argued that the situation has been made a lot worse by many factors, including the pandemic’s devastating effects on global society, the un- folding technological revolution, and the consequences of climate change.
    • He demands that the world must act jointly and swiftly to revamp all aspects of our societies and economies, from education to social contracts and working conditions.
    • Every country must participate, and every industry, from oil and gas to tech, must be transformed.

    Agenda behind

    The agenda of The Great Reset touches on many key issues facing the world a/c to C Raja Mohan. Three of them stand out as:

    First is the question of reforming capitalism

    • The WEF has been at the forefront of calling for “stakeholder capitalism” that looks beyond the traditional corporate focus on maximizing profit for shareholders.

    Second, it is certainly right to focus on the deepening climate crisis

    • Climate skeptics have been ousted from Washington and President Biden has rejoined the 2015 Paris accord on mitigating climate change.

    The third is the growing difficulty of global cooperation

    • The era of great power harmony that accompanied the liberalization of the global economy at the turn of the 1990s has yielded place to intense contestation. The contestation is not just political but increasingly economic and technological.

  • Green Tax for personal vehicles older than 15 years

    The Union Minister for Road Transport and Highways has approved a proposal to levy a ‘green tax’ on old vehicles.

    Do read about Green Mobility, India’s FAME-I and II Scheme.

    Green Tax

    • Personal vehicles will be charged a tax at the time of renewal of Registration Certification after 15 years.
    • The policy will come into effect from April 1, 2022.
    • The levy may differ depending on fuel (petrol/diesel) and type of vehicle.
    • The proposal will now go to the States for consultation before it is formally notified.
    • It includes 10-25% of road tax on transport vehicles older than eight years at the time of renewal of fitness certificate.
    • The proposal on green tax also includes a steeper penalty of up to 50% of road tax for older vehicles registered in some of the highly polluted cities in the country.
    • Revenue collected from this tax will be kept in a separate account and will be used for tackling pollution, and for States to set up state-of-art facilities for emission monitoring.

    Why such a move?

    • To dissuade people from using vehicles which damage the environment
    • To motivate people to switch to newer, less polluting vehicles
    • Green tax will reduce the pollution level, and make the polluter pay for pollution

    Exemptions to this tax

    • Vehicles like strong hybrids, electric vehicles and alternate fuels like CNG, ethanol, LPG etc to be exempted;
    • Vehicles used in farming, such as tractor, harvester, tiller etc to be exempted;

    Other proposals

    • The Ministry also approved a watered-down policy of deregistration and scrapping of vehicles, bringing only those vehicles owned by government departments and PSUs and are older than 15 years under its ambit.
    • In 2016, the Centre had floated a draft Voluntary Vehicle Fleet Modernization Programme that aimed to take 28 million decade-old vehicles off the road.