Political factions in Bihar has planned to organise the birth anniversary of the 1857 uprising hero Veer Kunwar Singh on April 23 at Jagdishpur in Bhojpur.
Veer Kunwar Singh
Kunwar Singh also known as Babu Kunwar Singh was a leader during the uprising of 1857.
He belonged to a family of the Ujjainiya clan of the Parmar Rajputs of Jagdispur, currently a part of Bhojpur district, Bihar.
At the age of 80, he led a selected band of armed soldiers against the troops under the command of the British East India Company.
He was the chief organiser of the fight against the British in Bihar.
He is popularly known as Veer Kunwar Singh or Veer Babu Kunwar Singh.
Role in 1857 Uprising
Singh led the Indian Rebellion of 1857 in Bihar. He was nearly eighty and in failing health when he was called upon to take up arms.
He was assisted by both his brother, Babu Amar Singh and his commander-in-chief, Hare Krishna Singh.
He gave a good fight and harried British forces for nearly a year and remained invincible until the end.
He was an expert in the art of guerrilla warfare.
In popular culture
To honour his contribution to India’s freedom movement, the Centre issued a commemorative stamp on 23 April 1966.
The Government of Bihar established the Veer Kunwar Singh University, Arrah, in 1992.
Recently, the Finance Minister has stressed upon the need to increase capital expenditure by both public sector as well as private sector.
This is in order to improve the economic growth and invigorate demand in the country.
Why increase CAPEX?
As per the various studies, capital expenditure has a multiplier effect of 2.45 in the short term and 4.8 in the long term.
This means that a single rupee spent on capital expenditure has the potential to add Rs 2.45 in the short term and Rs 4.8 in the long term to the overall economy.
What is multiplier effect in economy?
The multiplier effect is an economic term, referring to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of capital.
In effect, it measures the impact that a change in economic activity—like investment or spending—will have on the total economic output of something.
Amount of Capital Expenditure in this year Budget
The budget for 2022-23 has proposed a hike of 24.47% in capital expenditure, amounting to almost Rs 7.5 Lakh Crore.
If grants in aid for the creation of capital assets (including MGNREGA assets) are included in the capital expenditure, the effective capital expenditure increases to Rs 10.68 Lakh Crore.
This is 27% more than the capital expenditure of Rs 8.4 Lakh Crore in 2021-22.
Similar Provisions in the Budget
Due to COVID-induced economic slowdown, the Union government has relaxed various provisions related to expenditure.
For e.g. the Borrowing limit for the states has been enhanced to 4% of the Gross State Domestic Product (GSDP).
The government has allowed Rs 2 Lakh Crore for States and Autonomous bodies for capital expenditure.
Need for Increase in Capital Expenditure
Pandemic: As mentioned above, COVID-induced lockdown has resulted in closure of industries for an extended period of time.
Crowding-in private investment: There is a need to crowd-in private investment through direct investment and signalling through favorable policy interventions by the government in the Economy.
Shortfall in Tax Revenues: The pandemic has led to a decrease in the realization of tax revenues due to a fall in demand as well as temporary closure of industries. This can be countered by sustained investment by the government, providing the necessary boost to animal spirits within the Economy.
Benefits of Capital Expenditure: Capital Expenditure has various effects on the Economy of a country including creating capacity and increasing supply, increasing employment generation and rise in wages, in turn, stimulating demand for the goods and services and attracting FDI.
Supplementary fundings: The increased allocations would be available for investment in PM Gati Shakti Plan and its associated initiatives. The funds can also be used for supplementary funding in projects like PM Gram Sadak Yojana.
Scheme for Special Assistance to States for Capital Expenditure: These funds under will also be used to encourage the government to undertake reforms for increasing the development in the States. The associated sectors include digitization of the Economy, including digital payments, and reform in areas like town planning, transit oriented development, building bylaws and transferable development rights.
Conclusion
Overall, this budget aims to create a long-term multiplier effect by focusing its resources and capital in the right direction.
In future years, the government will need to stay the course set today, as the impact of these initiatives will be seen in the long term.
Communal clashes broke out during Ram Navami processions in several parts of the country including at Khargone in Madhya Pradesh. Subsequently, the Madhya Pradesh government bulldozed the houses of those who were allegedly involved in rioting.
Right to housing
Fundamental right under Article 21: The right to housing is not only a fundamental right recognised under Article 21 of the Indian Constitution, it is also a well-documented right under the international human rights law framework, which is binding on India.
Article 25 of the Universal Declaration of Human Rights (UDHR) states that “everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care.
Likewise, Article 11.1 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) recognises “the right of everyone to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living condition.
The rights recognised under ICESCR, according to Article 4, can be restricted by States only if the limitations are determined by law in a manner compatible with the nature of these rights and solely to promote society’s general welfare.
Besides, international law also prohibits arbitrary interference in an individual’s right to property.
For instance, Article 12 of the UDHR states that “no one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation”.
Article 12 also stipulates that “everyone has the right to the protection of the law against such interference or attacks”.
This same right is also provided under Article 17 of the International Covenant on Civil and Political Rights (ICCPR).
Protection against Forced eviction
According to the UN Human Rights Office, an integral element of the right to adequate housing is ‘protection against forced evictions’.
The UN Human Rights Office defines ‘forced evictions’ as ‘permanent or temporary removal against the will of individuals, families and/or communities from the homes and/or land which they occupy, without the provision of, and access to, appropriate forms of legal or other protection’.
Way forward
The apex court in cases like Bachan Singh vs State of Punjab, Vishaka vs State of Rajasthan, and recently in the famous Puttaswamy vs Union of India has laid down the principle that the fundamental rights guaranteed under the Constitution must be read and interpreted in a manner which would enhance their conformity with international human rights law.
It is high time that the judiciary acted and imposed necessary checks on the unbridled exercise of power by the executive.
Conclusion
The bulldozing of the houses of the alleged rioters amounts to forced eviction and arbitrary interference with an individual’s home.
Progress in settling border disputes, removal of AFSPA herald positive changes in the region.
Significant development for restoring normalcy in the region
Efforts to address the issues of the Northeast have been moving according to a strategic plan which is premised on three objectives —
1] Ending all disputes.
2] Ushering in economic progress and taking the region’s contribution to GDP back to its pre-Independence levels,
3] making efforts to maintain and preserve the region’s languages, dialects, dance, music, food, and culture and make it attractive for the whole country.
In this regard, two recent developments are significant:
On March 29, the Assam and Meghalaya chief ministers signed an agreement to resolve the five-decade-old border dispute.
The Union home ministry (MHA) decided to reduce the disturbed areas under the Armed Forces (Special Powers) Act (AFSPA) in Assam, Nagaland and Manipur after decades.
Progress on the border disputes
As part of the strategy, existing issues of both interstate border disputes and insurgency have been closely studied and negotiated and a few agreements have been signed.
Assam, with the maximum border disputes in the region, got into a proactive border dialogue.
The dialogues on the state’s border disputes with Meghalaya, Arunachal Pradesh, Nagaland and Mizoram are continuing at a steady pace.
After the violent flare-ups witnessed last year at the Assam-Mizoram border, today there are regular engagements to maintain peace and work out a permanent solution.
The model of Assam’s engagement with Meghalaya, is a good one to emulate — the two chief ministers, after two rounds of talks in August last year, constituted three committees each under cabinet ministers in their states to go into the complex boundary issues.
Significance of notification on AFSPA
Peace has been witnessed in most places across Assam, and even in Nagaland and Manipur talks with various groups for a permanent solution had resulted in a cessation of violence.
The NLFT Tripura Agreement (August 2019), the Bru Agreement (January 2020), the Bodo Peace Accord (January 2020) and the Karbi Anglong Agreement (September 2021) have actually resulted in about 7,000 militants surrendering their arms.
Removal of DAN: So the demand for the removal of the disturbed areas notification (DAN) was very much justified.
DAN has been in force in the whole of Assam since 1990, in all of Manipur (except the Imphal Municipality area) since 2004 and in the whole of Nagaland since 1995.
With the removal of the DAN tag, AFSPA has been removed with effect from April 1 this year completely from 23 districts and partially from one district of Assam, from 15 police station areas of six districts of Manipur and from 15 police station areas in seven districts in Nagaland.
DAN is currently applicable in only three districts and in two police station areas in one other district of Arunachal Pradesh.
AFSPA was completely removed from Tripura in 2015 and Meghalaya in 2018, respectively.
Conclusion
The efforts by the Union government to make the northeastern region the main pillar of the Act East policy have been useful in bringing a sense of political stability that is very crucial for optimal economic development and capacity enhancement in the region.
OPEC’s share of India’s oil imports for the FY22 financial year remained almost steady year-on-year, arresting sharp declines over the past six years, as refiners prefer crude from West Asia to counter rising global prices.
India’s crude oil imports from OPEC
OPEC oil accounted for about 88% of India’s crude imports in FY08.
Its share of India’s overall imports could decline because refiners in Asia’s third-largest economy are buying cheaper Russian oil.
However, Russian oil continued to account for less than 1% of India’s crude imports in FY22.
What is OPEC?
OPEC stands for Organization of the Petroleum Exporting Countries.
It is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
It is headquartered in Vienna, Austria.
OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.
What is OPEC+?
The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.
Why OPEC plus came into existence?
When Russia concluded the Vienna Agreement in 2016, the Russian leadership believed that it would help prepare the country for the Russian presidential elections in March 2018.
Higher oil prices ensured the Kremlin’s financial capacity to lead a successful electoral campaign.
This changed the regime’s priorities – from satisfying the needs of the general population to ensuring the sustainability of the Kremlin’s alliance with powerful tycoons, including that controlling oil production.
For Saudi Arabia, turning what had been an ad hoc coalition into a formal group provides a hedge (protection) against future oil-market turbulence.
For Russia, the formalization of the group helps expand Putin’s influence in the Middle East
However, both reportedly aimed at causing a drop in oil prices in order to hit US shale producers, who have continued to benefit from OPEC production cuts by expanding their market share.
Try this PYQ:
Q.The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of
(a) Crude oil
(b) Bullion
(c) Rare earth elements
(d) Uranium
[wpdiscuz-feedback id=”fozewnon7k” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]
Asia’s youngest nation, East Timor, also known as Timor Leste, holds the second and final round of its presidential election.
About East Timor
The territory was colonized by Portugal in the 18th century and remained under is control until 1975.
When the Portuguese withdrew, troops from Indonesia invaded and annexed East Timor as its 27th province.
A long and bloody struggle for independence ensued, during which at least 100,000 people died.
The East Timorese voted for independence in a 1999 U.N.-supervised referendum, but that unleashed even more violence until peace-keeping forces were allowed to enter.
The country was officially recognized by the United Nations in 2002.
East Timor has applied to be a member of the Association of Southeast Asian Nations (ASEAN). It currently holds observer status.
Its geography
East Timor comprises the eastern half of Timor Island, the western half of which is part of Indonesia.
It spans a 15,000 square km (5,792 square mile) land area – slightly smaller than Israel – and it’s 1.3 million people are predominantly Roman Catholic.
Politics and economy
In nearly 20 years since independence, East Timor’s presidential and parliamentary elections have been dominated by many of the same faces.
Its revolutionary have run for and held various positions of power and continue to feature prominently in the running of the country.
East Timor depends on revenues from its offshore oil and gas reserves which account for 90% of its gross domestic product.
Its main revenue stream, the Bayu Undan gas field, is set to dry up by 2023 and the country is now planning to collaborate with companies like Australia’s Santos to turn it into carbon capture facilities.
Pakistan has witnessed dramatic political developments where yet another elected govt has been unable to complete its full term.
It now has a new ‘Wazir-e-Azam’. His name is Shehbaz Sharif. A member of the wealthy Sharif dynasty. A man famous for his impassionate speeches.
It does not matter who rules Pakistan, the country is never going to change (any way that’s the prevailing argument.)
However, in this article, we will study what this latest change in Pakistan mean for Pakistan, for India, and the rest of the world.
Pakistan conundrum: A quick recap
(1) Attempt for a constitutional coup
In a high stage political drama, Imran Khan was ousted as the PM after a political and constitutional crisis emerged in Pakistan.
Pakistani National Assembly Speaker dismissed a no-confidence motion against PM during a session in which it was expected to be taken up for a vote, alleging foreign country’s involvement.
The Supreme Court of Pakistan (SCP) took a suo moto notice of the ongoing situation, creating a constitutional crisis, as effectively, Imran Khan led a constitutional coup.
(2) Questions over Pak Army’s role
Meanwhile, Imran Khan had ordered termination of its Army Chief who was his staunch supporter turned opponent.
He has broken that consensus within Pakistan’s political class on deference to the Pakistan army and has demonised his political opponents.
Shortly after midnight on 10 April, a majority of members voted and passed the no-confidence motion, removing Khan from office, and making him the first prime minister in Pakistan to be removed from office through a no-confidence motion.
Geopolitical impacts of Pakistan Crisis
The nation of more than 220 million people lies between Afghanistan to the west, China to the northeast and India to the east, making it of vital strategic importance.
Defiance from the US: Since coming to power in 2018, Khan’s rhetoric has become more anti-American.
Support for Russian invasion of Ukraine: He expressed a desire to move closer to China and, recently, Russia – including talks with President Putin on the day the invasion of Ukraine began.
Here is what the upheaval, which comes as the economy is in deep trouble, means for countries closely involved in Pakistan:
[A] INDIA
Terrorism: Any regime change in Islamabad has always been monitored closely by New Delhi for potential changes in the border scenario, and militancy.
Ongoing Ceasefire: As with Afghanistan, it is Pakistan’s military that controls policy in the sensitive area, and tensions along the de facto border there are at their lowest level since 2021, thanks to a ceasefire.
Absence of formal dialogue: There have been no formal diplomatic talks between the rivals for years because of deep distrust over a range of issues, including Khan’s extreme criticism of Indian PM.
Push of geo-economics: The Pakistani military has put pressure on the new government in Islamabad to build successful ties for geo-economics and bilateral trade.
Change in Kashmir rhetoric: The powerful army chief General Qamar Javed Bajwa said recently that his country was ready to move forward on Kashmir if India agrees.
[B] AFGHANISTAN
Ongoing crisis: Now that the Taliban are back in power in Afghanistan, and facing an economic and humanitarian crisis due to a lack of money and international isolation.
Row over Durand Line: Tensions have risen between the Taliban and Pakistan’s military, which has lost several soldiers in attacks close to their mutual border.
Putting curb on terror activities: Pakistan wants the Taliban to do more to crack down on extremist groups and worries they will spread violence into Pakistan by the Tehreek-i-Taliban Pakistan (TTP) faction.
[C] CHINA
“All weather” friends: Khan consistently emphasised China’s positive role in Pakistan and in the world at large.
Continuance of CPEC: The $60 billion China-Pakistan Economic Corridor (CPEC) which binds them together was actually conceptualised and launched under Pakistan’s two established political parties, both of which are set to share power in the new government.
[D] UNITED STATES
No priority for US: Pakistan’s political crisis is unlikely to be a priority for President Joe Biden, who is grappling with the war in Ukraine, unless it led to mass unrest or rising tensions with India.
Pak retreat on alleged US involvement: With the Pakistani military maintaining its behind-the-scenes control of foreign and security policies, the change of government was not a major concern.
Damage control over Russian ties: Imran Khan’s visit to Moscow had been a “disaster” in terms of U.S. relations, and that a new government in Islamabad could at least help mend ties “to some degree”.
Pakistan- the way it is: A Rogue State
Obsession for Kashmir: Ever since Pakistan came into being, its biggest obsession has been India and Kashmir. Even after losing 3 crucial wars, the saga has never ended.
Obsession with India: The deploring economic condition, ever-increasing scarcity of water, dishevelled education system and growing radicalisation take a back seat in the breadth of bleeding India by a thousand cuts.
Perceived ‘conspiracy’ in all walks of polity: The only thing that helps the army/govt to stay in power is by vilifying India (/ US/ Semitism) and delineating India as the biggest threat to their survival.
Lack of credible civilian leadership: Pakistan’s founders expected the idea of Pakistan to shape the state of Pakistan; instead, a military bureaucracy governs the state and imposes its own vision of a Pakistani nation.
Army is the Deep-State: This shortcoming gave the army a chance to intervene and take over the functioning of the civilian government. Ever since its inception, the army has played a decisive role in the internal governance and foreign policy.
Demographic bottlenecks: At the time of partition, Pakistan received a large share of military personnel as compared to the share of civilian migrants from India.
De-indigenization of own history: Pakistan has always tried to de-indigenise its history, culture. It has always tried to attach its cultural habits with the Arabs and the invader Turks.
Crusade for Islam: Pakistan often stunts to be the khalifa of the Islamic world. It has propagated the rhetoric of Islamophobia despite being a Islamic republic.
Terrorism as a diplomatic tool: Pakistan is idiosyncratic to the common notion of diplomacy. Pakistan is the only state in the world which sponsors terrorism as a state policy be it in India or Afghanistan
Dilemma for India
Leadership vacuum in Pakistan: Indian policymakers have not been able to engage in a formal diplomatic talk due to the leadership vacuum and deep distrust.
No talks amid Terrorism: India has tried both the diplomatic and the military ways to find a solution to the problem. But nothing has worked out so far that could deter Pakistan from sponsoring terrorism.
Offensive defence: Even after 26/11, India’s responses were mostly limited to diplomatic and covert operations. Indian responses pre-surgical-strike were mostly dictated by the nuclear hangover.
Short-lived military deterrence: Surgical strike and Balakot strike manifested change in India’s attitude to take punitive and decisive action. But the deterrence which was expected to have been created have been short-lived.
Atomic hangover of Pakistan: It often reiterates the stance of being a potential atomic superpower, whenever reference to the ties with India are invoked.
Imperatives for India
From India’s point of view, two positive developments have taken place in the course of this turmoil:
Praise for India: First, Imran Khan, the outgoing prime minister who has alleged a US-led foreign conspiracy to oust his government, has heaped fulsome praise on India for its independent foreign policy.
Army wants ties with India: Pakistan’s powerful army chief, General Qamar Javed Bajwa, has yet again reached out to India with a message of peace, which the Modi government must not reject. He regards religious extremism, not India, to be a greater threat to Pakistan’s national security.
What could be the reasons compelling Pakistan’s military to seek peace with India?
Ans.
(1) Looming Economic Crisis
Pakistan is going through an acute economic crisis, which has made its military leaders to do some introspection.
Today, Pakistan stands at the crossroads of its economic and strategic goals. It has north-south connectivity (Pakistan to Afghanistan to Central Asia and Russia).
It now wants to capitalize the build connectivity from east to west (India to Iran) that will increase trade and benefit Pakistan and the region.
(2) Own jihadists hitting back
Tehrik-e-Taliban Pakistan (TTP) is the largest militant organization fighting against the state in Pakistan.
It was once bred by Pak Army and ISI to wage Jihad against India in Kashmir Valley.
According to the UN, the TTP also boasts several thousand fighters in Afghanistan, with strongholds on both sides of the Afghanistan-Pakistan border.
(3) Crisis in Balochistan
(4) Stalled progress of China Pakistan Economic Corridor
Way forward
Capitalizing on-going conundrum: India cannot let these tactical advantages go in vain. It will have to capitalise on them.
Resumption of dialogue: The visionary Pak army chief will retire this year. Hence, there is a small window of opportunity in which India and Pakistan can resume dialogue and achieve a meaningful breakthrough.
Alert policy imperatives: India should respond careful to the peace message from our western neighbour — coming from none other than its army chief.
All-factor considerations: India needs to prepare a grand strategy to decipher this Pakistan conundrum which should take into consideration all the facets of the problem.
Balancing China: Another important aspect of this grand strategy, which would need greater accentuation, is the bonhomie between China and Pakistan.
Cryptocurrency will be discouraged via taxation and capital gains provisions. This was the message from the Finance Minister during the Budget discussion in Parliament.
Growing worry about the cryptocurrencies
The Governor of the Reserve Bank of India, in February, highlighted two things.
First, “private cryptocurrencies are a big threat to our financial and macroeconomic stability”.
Second, “these cryptocurrencies have no underlying (asset).
Clearly, statements from the RBI indicate a growing worry since the proliferation of cryptos threatens the RBI’s place in the economy’s financial system.
This threat emerges from the decentralised character of cryptos based on blockchain technology which central banks cannot regulate and which enables enterprising private entities to float cryptos which can function as assets and money.
The total valuation of cryptos recently was upward of $2 trillion — more than the value of gold held globally.
Challenges in banning it: Cryptos which operate via the net can be banned only if all nations come together.
Even then, tax havens may allow cryptos to function, defying the global agreement.
Crypto as currency
A currency is a token used in market transactions.
Historically, commodities (such as copper coins) have been used as tokens since they themselves are valuable.
But paper currency is useless till the government declares it to be a fiat currency.
Paper currency derives its value from state backing.
Cryptos are a string of numbers in a computer programme. And, there is no state backing.
Their acceptability to the well-off enables them to act as money.
So, cryptos acquire value and can be transacted via the net.
This enables them to function as money.
Solving the problem of double spending: Fiat currency has the property that once spent, it cannot be spent again except through forgery, because it is no more with the spender.
But, software on a computer can be used repeatedly.
Blockchain and encryption have solved the problem by devising protocols such as ‘proof of work’ and ‘proof of stake’.
Why CBDC is not a solution
A Central Bank Digital Currency (CBDC) will not solve the RBI’s problem since it can only be a fiat currency and not a crypto.
Blockchain enables decentralisation.But, central banks would not want that.
Further, central bank would want a fiat currency to be exclusively issued and controlled by them.
But, theoretically everyone can ‘mine’ and create crypto.
So, for the CBDC to be in central control, solving the ‘double spending’ problem and being a crypto (not just a digital version of currency) seems impossible.
Validating transaction: A centralised CBDC will require the RBI to validate each transaction — something it does not do presently.
Once a currency note is issued, the RBI does not keep track of its use in transactions.
Keeping track will be horrendously complex which could make a crypto such as the CBDC unusable unless new secure protocols are designed.
Conclusion
CBDCs at present cannot be a substitute for cryptos that will soon begin to be used as money. This will impact the functioning of central banks and commercial banks.
Apple recently announced that consumers will have the right to purchase spare components of their products, following an order of the Federal Trade Commission of the United States, which directs manufacturers to remedy unfair anti-competitive practice and asks them to make sure that consumers can make repairs, either themselves or by a third-party agency. The momentum is, however, not so strong in India.
Challenges in repairing of electronic goods
Repairing is becoming unreasonably expensive or pretty much impossible because of technology becoming obsolete.
Incompatibility: Companies avoid the publication of manuals that can help users make repairs easily.
No repair manual: The absence of repair manuals means that manufacturers hold near-monopoly over repair workshops that charge consumers exorbitant prices.
Incompatibility: Manufacturers have proprietary control over spare parts and most firms refuse to make their products compatible with those of other firms.
Planned obsolescence results in products breaking down too soon and buying a replacement is often cheaper and easier than repairing them.
Big companies often deploy mechanisms that practically forbid other enterprises to repair their products.
Digital warranty cards, for instance, ensure that by getting a product from a “non-recognised” outfit, a customer loses the right to claim a warranty.
Right to repair
The rationale behind the “right to repair” is that the individual who purchases a product must own it completely.
This implies that apart from being able to use the product, consumers must be able to repair and modify the product the way they want to.
Monopoly on repair processes infringes the customer’s’ “right to choose” recognised by the Consumer Protection Act, 2019.
In Shamsher Kataria v Honda Siel Cars India Ltd (2017), for instance, the Competition Commission of India ruled that restricting the access of independent automobile repair units to spare parts by way of an end-user license agreement was anti-competitive.
International practices
Many countries have taken initiatives, adopted policies and even tried to enact legislation that recognise the “right to repair” to reduce electronic waste.
Some jurisdictions offer limited scope for exercising the right to repair.
For instance, under the Australian Consumer Law consumers have a right to request that certain goods be repaired if they break too easily or do not work properly.
The Massachusetts Motor Vehicle Owners’ Right to Repair Act, 2012 requires automobile manufacturers to provide spare parts and diagnostics to buyers and even independent third-party mechanics.
The UK also introduced the path-breaking “right to repair” in 2021 that makes it legally binding on manufacturers to provide spare parts.
Way forward
Well-drafted legislation will not only uphold the right to repair but may aid in striking a much-needed balance between intellectual property and competitive laws in the country.
Conclusion
If people want to fix things in a timely, safe and cost-effective way, whether by doing it themselves or taking it
to a service centre of their choice, providing access to spare parts and information is imperative.
The Supreme Court has asked the Chief Secretaries of the States to respond to queries raised by the Centre on the implementation of rules framed under the Real Estate (Regulation and Development) (RERA) Act, 2016 in their respective jurisdictions.
What is RERA, 2016?
The Real Estate (Regulation and Development) Act, 2016 seeks to protect home-buyers as well as help boost investments in the real estate industry.
It establishes a Real Estate Regulatory Authority- RERA in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.
It was enacted under Entry 6 and 7 (dealing with contracts and the transfer of property) of the Concurrent List.
It is followed by the principle “buyer is the king and builders will have to ensure compliances to avoid punishment”.
Its main objective is to reduce delay in the work or timely delivery of the project without compromising the quality.
Objectives of this Act
It has the following objectives:
To protect the interest of the allottees and ensure their responsibility
To maintain transparency and reduce the chances of fraud
To implement Pan-India standardization and bring about professionalism
To enhance the flow of correct information between the home buyers and the sellers
To impose greater responsibilities on both the builders and the investors
To enhance the reliability of the sector and thereby increase confidence amongst the investors
Key Provisions of RERA Act
Compulsory registration: According to the central act, every real estate project (where the total area to be developed exceeds 500 sq mtrs or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA.
Establishment of state level regulatory authorities: It provides for State governments to establish more than one regulatory authority such as RERA to:
Register and maintain a database of real estate projects; publish it on its website for public viewing
Protection of interest of promoters, buyers and real estate agents
Development of sustainable and affordable housing
Render advice to the government and ensuring compliance with its Regulations and the Act
Establishment of Real Estate Appellate Tribunal: Decisions of RERAs can be appealed in these tribunals.
Mandatory Registration: All projects with plot size of a minimum 500 sq.mt or eight apartments need to be registered with Regulatory Authorities.
Deposits: Developers needs to keep 70% of the money collected from a buyer in a temporary pass through account held by a third party (escrow account) to meet the construction cost of the project.
Liability of the developer: A developer’s liability to repair structural defects would be for 5 years.
Cap on Advance Payments: A promoter cannot accept more than 10% of the cost of the plot, apartment or building as an advance payment or an application fee from a person without first entering into an agreement for sale
Carpet Area over super built-up: Clearly defines Carpet Area as net usable floor area of flat. Buyers will be charged for the carpet area and not super built-up area.
Punishment for non-compliance: Imprisonment of up to three years for developers and up to one year in case of agents and buyers for violation of orders of Appellate Tribunals and Regulatory Authorities.
Which projects can get RERA approval?
Commercial and residential projects including plotted development.
Projects measuring more than 500 sq mts or 8 units.
Projects without Completion Certificate, before the commencement of the Act.
The project is only for the purpose of renovation/repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA.
Each phase is to be treated as standalone real estate project requiring fresh registration.
Benefits offered by the RERA Act
Industry
Developer
Buyer
Agents
Governance and transparency
Project efficiency and robust project delivery
Standardization and quality
Enhance the confidence of investors
Attract higher investments and PE funding
Regulated Environment
Common and best practices
Increase efficiency
Consolidation of sector
Corporate branding
Higher investment
Increase in organized funding
Significant buyers protection
Quality products and timely delivery
Balanced agreements and treatment
Transparency – sale based on carpet area
Safety of money and transparency on utilization
Consolidation of the sector (due to mandatory state registration)
