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GS Paper: Governance, Transparency & Accountability, Citizens Charters

  • All gold jewellery to bear hallmark

    The Centre will go ahead with its plan to mandate hallmarking of gold jewellery from June 1. The plan had been delayed due to the COVID-19 pandemic.

    Note: Gold hallmarking is a purity certification and is voluntary at present.

    What is Hallmark Gold?

    • The process of certifying the purity and fineness of gold is called hallmarking.
    • Bureau of Indian Standards, the National Standards Body of India, is responsible for hallmarking gold as well as silver jewellery under the BIS Act.
    • If you see the BIS hallmark on the gold jewellery/gold coin, it means it conforms to a set of standards laid by the BIS. Hallmarking gives consumers assurance regarding the purity of the gold they bought.
    • That is, if you are buying hallmarked 18K gold jewellery, it will actually mean that 18/24 parts are gold and the rest is alloy.

    Here are the four components one must look at the time of buying gold (they are mentioned in the laser engraving of a hallmark seal):

    1. BIS Hallmark: Indicates that its purity is verified in one of its licensed laboratories
    2. Purity in carat and fineness (corresponding to given caratage KT)
      •     22K916 (91.6% Purity)
      •     18K750 (75% Purity)
      •     14K585 (58.5% Purity)
    3. Assaying & Hallmarking Centre’s mark
    4. Jeweler’s unique identification mark

    Try this PYQ from CSP 2017:

    Q. Consider the following statements:
    1. The Standard Mark of the Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
    2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    Why such a move now?

    • As per the new rules, if jewellery or an artefact made of 14-, 18- or 22-carat gold is sold without the BIS hallmark, the jeweller could be penalized five times the cost of the object or imprisoned for up to one year.
    • About 40% of gold jewellery is sold with a hallmark.
    • Mandatory hallmarking would protect the public against lower caratage and ensure consumers did not get cheated while buying gold ornaments and got the purity as marked on the ornaments.

  • Film Certification Appellate Tribunal (FCAT)

    The Government of India’s decision to abolish the Film Certification Appellate Tribunal (FCAT), under the Tribunal Reforms Ordinance, 2021, has triggered a wave of criticism with filmmakers.

    The FCAT was the place filmmakers walked into as a penultimate resort to challenging edits suggested to their films by the Central Board of Film Certification (CBFC).

    Plunging into crisis

    • FCAT is only one of many tribunals in the country that were either abolished or amalgamated under the Ordinance.
    • Earlier, if a filmmaker fails to clear the Examining Committee (EC) and Revising Committee (RC) hurdles of the CBFC, the FCAT was the next step of recourse, but that is no longer the case.
    • FCAT only charged a nominal fee to hold the screening for its members, and it would pass its judgment immediately.

    Fighting the system

    • FCAT’s panel is predominantly made up of members from industry veterans who arrive at a judgment after balancing both CBFC and the filmmaker’s points of view.
    • Most of CBFC’s decisions were overruled by the Tribunal and that has reassured constitutional rights under Article 19 to filmmakers to express themselves freely.
    • A judge will only look at the issue from a legal perspective, not whether a particular edit will constrict the flow of the movie.

    Re-classifying certification

    • To avoid such issues, the Government constituted the ‘Shyam Benegal Committee’ in January 2016.
    • The committee recommended regulations for film certification — a move away from the current practice adopted by CBFC, and submitted its report in April 2016.
    • According to many, a revamp of the certification system that doesn’t require censoring or cuts is the need of the hour.

  • Need to remove the secrecy around the electoral bonds

    The article highlights the issues with the electoral bond scheme and suggests an alternatives.

    Secrecy in donations

    • Before the electoral bond scheme, every transaction of more than Rs 20,000 was reported to the Election Commission.
    • Now even Rs 20 crore or Rs 200 crore could be donated anonymously. 
    • Why should donors want secrecy? To hide return favours, like contracts, licences and bank loans.
    • Both the RBI and ECI, standing up to their mandates, had registered their strong protest.

    How electoral bond scheme led to changes in provisions of other Acts

    • To make way for electoral bonds amendments were introduced in the Reserve Bank of India Act, Companies Act, Income Tax Act, Representation of the People Act and Foreign Contribution Regulations Act.
    • There were three serious changes which did not receive the deserved attention.

    1) Limit of 7.5 per cent removed

    • First, the limit of 7.5 per cent of its profits which a company could donate was not just increased but completely done away with by amending section 182 of the Companies Act, 2013.
    • Thus a company could donate 100 per cent of its profits to a political party.
    • Even a loss-making company could make political donations.
    • This is a sure step to legitimise and legalise crony capitalism.

    2) Requirement of resolution removed

    • The requirements for a resolution by the board of directors for a company to make donations to political parties and to declare the political donations in the profit and loss accounts were also removed.
    • This would allow keeping the donations secret not only from the public but the owners of the company, the shareholders — ironically, all in the name of transparency.

    3) Secrecy in contribution from foreign source

    • Section 29B of the Representation of the People Act, 1951 prohibits all political parties from accepting any contribution from a “foreign source.”
    • Section 3 of the 2010 Foreign Contribution (Regulation) Act bars candidates, legislative members, political parties and party officeholders from accepting foreign contributions.
    • When the High Court of Delhi in 2014 found Congress and BJP having accepted foreign funds in violation of the FCRA 1976, the government passed a retroactive amendment through a 2016 Finance Bill which repealed the 1976 Act and replaced it with the modified 2010 statute.
    • If any foreign country is financing our elections, it will now be a protected secret.

    Way forward

    • The Supreme Court’s concern about the possibility of misuse of funds is very pertinent.
    • The EC has been demanding that a law be passed to make political parties liable to get their accounts audited by an auditor from a panel suggested by the CAG or EC.
    • If the government don’t want to abolish the electoral bond scheme it should just make changes to it to disclose the donor and the recipient.
    • Another alternative is to do away with private fund collection altogether and replace it with public funding of political parties.
    • This is not likely to be more than Rs 10,000 crore every five years, if we were to go by the entire collection all the parties make together.
    • Another feasible option is to establish a National Election Fund to which all donations could be directed.
    • This would take care of the imaginary fear of political reprisal of the donors. 

    Consider the question “What were the changes introduced in various Acts for the introduction of the electoral bond scheme? What are the issues with these changes?”

    Conclusion

    We must not forget the finance minister’s opening statement in the 2017 Budget speech that “without transparency of political funding, free and fair elections are not possible”.

  • Why police reform recommendations have not been implemented

    The article discusses the status of implementation of the Supreme Court directives in the Prakash Singh case by the States.

    Background of the Prakash Sing judgement

    • Over the years, the National Police Commission made several recommendations for reform of the police force.
    • But many of these were not implemented effectively.
    • In 1996, two retired Directors General of Police, Prakash Singh and N. K. Singh, filed a public interest litigation (PIL) to know whether those recommendations had ever been implemented.
    • A decade later in 2006 that the Court delivered its verdict in what is popularly referred to as the Prakash Singh case.
    • In Prakash Singh v. Union of India, the SC relied on the eight reports of the National Police Commission (1979-1981) appointed by the Union.

    Following are some of the recommendations and provision and status of their implementations.

    Selection and minimum tenure of DGP

    • The provision regarding the selection of and minimum tenure for the DGP post has had partial if any, effect.
    • Corruption, politicking, and patronage-seeking at the top is so endemic that this provision has lost its sting.
    • The Security Commission consisting of the Home Minister, the Leader of the Opposition, the Chief Secretary, the DGP and five independent members is likewise ineffective.
    • How can one have at the apex of the reform system for the police those who have a vested interest in not reforming the police?

    Separation between investigation and prosecution wings

    • The Commission’s recommendation that there ought to be a separation between the investigation and prosecution wings, as is the system in many developed countries, required immediate enforcement by the judiciary.
    • Doing so will help weed out the corruption in criminal investigations would get a second look by the prosecutorial wing.
    • But, for that, it would require that this department be placed not under the Home Minister, but under the Ministry of Law and Justice.
    • This was never done.

    The Police Complaint Authority

    • Obviously, for police criminality, one cannot expect the police or the home department to take action against themselves.
    • An independent body was necessary.
    • The commission recommended that there should be a PCA at the state level, headed by a retired judge of the SC or high court chosen out of a panel of names proposed by the chief justice of the state.
    • A similar structure was envisaged for the PCA at the district level.
    • In addition, the PCAs would be assisted by members selected by the state from panels prepared by the State Human Rights Commission, Lokayuktas and the State Public Service Commissions.
    • The most important part of this decision was that the recommendations of the PCA would be binding on the state.
    • However, affidavits filed in the SC showed that not a single state or UT has implemented the PCA provision.
    • States have not constituted panels and appointed officials as chairpersons in the place of retired judges.
    • In many states, the name Police Complaints Authority has been changed.
    • For example, in Tripura and Mizoram, it is called The Police Accountability Commission, diverting attention away from the fact that the commission is for entertaining complaints against police persons.

    Consider the question “What are the Supreme Court directives for police reform in the Prakash Singh vs. Union of India case? To what extent states have implemented these directives?” 

    Conclusion

    On police reform, the recommendations exist, the SC order has been made but the Union remains defiant. Perhaps, now, after the Maharashtra fiasco, the SC may decide that this case pending for eight years merits listing.

    Back2Basics: The SC directives in the Prakash Singh case

    1) Limit Political Control

    • Constitute a State Security Commission to:
    • Ensure that the state government does not exercise unwarranted influence or pressure on the police.
    • Lay down broad policy guidelines.
    • Evaluate the performance of the state police.

    2) Appointment based on merit

    • Ensure that the Director General of Police is appointed through a merit–based, transparent process, and secures a minimum tenure of 2 years.

    3) Fix minimum tenure

    • Ensure that other police officers on operational duties (including Superintendents of Police in charge of a district and Station House Officers in charge of a police station) are also provided a minimum tenure of 2 years.

    4) Separate police functions

    • Separate the functions of investigation and maintaining law and order.

    5) Set up fair and transparent systems

    • Set up a Police Establishment Board to decide and make recommendations on transfers, postings, promotions and other service-related matters of police officers of and below the rank of Deputy Superintendent of Police.

    6) Establish a Police Complaints Authority in each state

    • At the state level, there should be a Police Complaints Authority to look into public complaints against police officers of and above the rank of Superintendent of Police in cases of serious misconduct, including custodial death, grievous hurt or rape in police custody.

    7) Set up a selection commission

    • A National Security Commission needs to be set up at the union level to prepare a panel for selection and placement of chiefs of the Central Police Organizations with a minimum tenure of 2 years.

  • Address the silent crisis of India’s gender deficit

    The recently released Gener Gap Report paints a grim picture for India. The deal with this issue.

    Where India Stands

    • The World Economic Forum’s (WEF) Global Gender Gap Report 2021 was released last week.
    • The report lays bare our silent crisis of gender inequality, aggravated by the covid pandemic.
    • India has slipped 28 places to 140th position among 156 countries on the WEF’s Global Gender Gap Index.
    • The country is now 37.5% short of an ideal situation of equality, by its index, last year it was a 33.2% deficit on the whole.
    • Back in 2006, we were almost 40% short, but even the slight progress made over the past 15 years has been highly uneven.
    • Gains were made on the education and political empowerment of women, we slid sharply on health and economic parameters.

    Factors to consider

    • Though pandemic has been responsible for the decline to a significant extent, many of our deficiencies are pre-covid.
    • Some of the drop in India’s international rank over the past two years, for example, has to do with regression in the field of political power.
    • The proportion of women ministers more than halved to 9.1% of the total, though our count of female Parliamentarians did not budge from its long stagnancy.
    • Our performance over the past decade-and-a-half has been poor on women’s economic opportunities and participation.
    • Indian workforce has been turning more predominantly male.
    • Senior managerial positions in the corporate sector have not seen sufficient female appointees.
    • At the aggregate level, our income disparity is glaring.
    • Women earn only a fifth of men, which puts India among the world’s worst 10 on this indicator.
    • We fare worse on women’s health and survival, with India beaten to the last rank only by China.

    Why proportionally fewer Indian women in jobs?

    • One explanation is that sociocultural attitudes go against women going out to work, unless the family lacks sustenance, and deprivation has been in decline for decades.
    • Another is that families prefer educated mothers to invest time in teaching their kids.
    • Both these motives are said to be influenced by upward income mobility and a quest for better lives.
    • Yet, the covid setback to both family incomes and gender progress would suggest the reasons are mostly attitudinal.

    Way forward

    • If the reasons are attitudinal, tax incentives and other schemes are unlikely to get women taking up more jobs.
    • What we need are new forms of social persuasion, which must go with credible assurances of gender equity in every sphere.

    Conclusion

    A country’s economic progress is inextricably linked to empowered women. So, India needs to act on the silent crisis of India’s gender deficit to move up the economic ladder.

  • A new architecture of economic growth is required

    The article highlights the factors to consider in framing the policies for the well being of the people.

    Increase in inequality

    • According to a report released by the World Bank, while India’s stock markets rose during the pandemic the number of people who are poor in India with incomes of $2 or less a day is estimated to have increased by 75 million.
    • This accounts for nearly 60% of the global increase in poverty, the report says.
    • The old global economy was very good for migrant capital, which could move around the world at will.
    • The pandemic has revealed that the old economy was not good for migrant workers, however.
    • Their “ease of living” was often sacrificed for capital’s “ease of doing business”.

    New strategy for growth

    • India urgently needs a new strategy for growth, founded on new pillars. One is broader progress measures.
    • GDP does not account for vital environmental and social conditions that contribute to human well-being and the sustainability of the planet.
    • According to global assessments, India ranks 120 out of 122 countries in water quality, and 179 out of 180 in air quality.
    • Several frameworks are being developed now to measure what really matters including the health of the environment, and the condition of societies: public services, equal access to opportunities, etc.

    Issues with the present frameworks for measurements

    • Most of these frameworks seek to define universally applicable scorecards.
    • The items measured are given the same weightages in all countries to arrive at a single overall number for each country.
    • This ‘scientific’ approach does enable objective rankings of countries.
    • However, as the Happiness Report explains, this ‘objective’ approach misses the point that happiness and well-being are always ‘subjective’.
    • Therefore, countries in which the spirit of community is high, such as the ‘socialist’ countries of Northern Europe, come on top of well-being rankings even when their per capita incomes are not the highest.

    Solutions for well being

    • The universal solution for improving well-being is for local communities to work together to find their own solutions.
    • Locals know which factors in the 17 Sustainable Development Goals matter the most to them.
    • Standard global solutions will neither make their conditions better nor make them happier.
    • Therefore, communities must be allowed to, and assisted to, find their own solutions to complex problems.
    • The philosopher Michael J. Sandel says that the ideology of ‘individualism’ justifies indifference to the conditions of those less well off.
    • It denies that societal conditions are responsible for the difficulties poor people have.
    • It also conveniently hides that societal conditions have contributed substantially to the wealth of those well-off.

    Consider the question “Rising income inequality in the aftermath of the pandemic points to the need for a new architecture of growth. Discuss.” 

    Conclusion

    When only some shine, India does not shine. Therefore, the government has to pursue the policies that result in the well being of the majority and not a few.

  • Ending ambiguity in Delhi government through amendment to NCT Act

    The article highlights the objectives of amendments to the Government of the National Capital Territory (NCT) of Delhi Act.

    Background of Article 239AA and 239AB

    • On December 20, 1991, Home Minister S B Chavan tabled the Constitution Amendment Bill in the Lok Sabha to add Article 239AA and 239AB to our Constitution.
    • The Bill was passed unanimously with all 349 members in the Lok Sabha supporting the bill.
    • The amendment paved the way for setting up a legislative assembly and a council of ministers for the National Capital Territory (NCT) of Delhi.

    What the recent amendment to NCT Act seeks to achieve

    • The amendments aimed to clear ambiguities in the roles of various stakeholders.
    • It also seeks to provide a constructive rules-based framework for stakeholders within the government of Delhi to work in tandem with the Union government.
    • The amendment that was passed by Parliament aims to bring in consistency that the Delhi government has acknowledged and course-corrected on.
    • As the Act now has the President’s assent, we also need to ensure that the LG is made more accountable.
    • This can be done by stipulating a maximum time limit to decide on matters that are referred to the LG in the case of legislative proposals and administrative matters in the rules.
    • The constitutional amendment passed in 1991 empowers the Parliament to enact laws supplementing constitutional provisions.
    • Similarly, the Government of NCT of Delhi also has the power to enact laws regarding matters specified under the state list and concurrent list, to the extent these apply to a Union territory.
    •  In the case of the Government of NCT of Delhi, it has no legislative competence in matters pertaining to the police, public order, and land, which are in the state list but do not apply to Union Territories.
    • The risk of incremental encroachments on these subjects by the Delhi Legislative Assembly can have severe ramifications for Delhi.
    • Similarly, making the Delhi assembly rules consistent with the rules of the Lok Sabha or ensuring that the opinion of the LG is taken can only ensure clarity and foster an environment of co-operation.

    Promoting cooperative federalism

    • The government has been promoting cooperative federalism, which is evident from the tangible steps that have been taken.
    • The creation of NITI Aayog, the establishment of the GST council, and the restructuring of central schemes are clear examples of promoting fiscal federalism.
    • Cooperative federalism requires an environment of trust and mutual cooperation.
    • A necessary condition for such an environment is the distinct delineation of roles and responsibilities, the removal of ambiguities, and the definition of a clear chain of command among stakeholders.
    • In this regard, it was important to define, without a doubt, who represents the government in the unique case of Delhi.

    Consider the question “What are the objectives of the recent amendment to the NCT Act? What will be its implications for governance in Delhi?” 

    Conclusion

    Our national capital hosts the country’s legislature, the seat of the Union government, the judiciary, diplomatic missions, and other institutions of national importance. It deserves smooth functioning and cannot be subject to misadventures arising from the ambiguities in the roles and responsibilities of its stakeholders.

  • Plea against sale of Electoral Bonds

    CJI has agreed to urgently hear a plea to stay the sale of a new set of electoral bonds on April 1, before Assembly elections in crucial states such as West Bengal and Tamil Nadu.

    Note the denominations of the Electoral Bonds and the issuers.

    What is the news?

    • Data obtained through RTI has shown that illegal sale windows have been opened in the past to benefit certain political parties.
    • There is a serious apprehension that any further sale of electoral bonds before the upcoming State elections would further increase illegal and illicit funding of political parties through shell companies.

    What are Electoral Bonds?

    • The electoral bonds were introduced on January 29, 2018.
    • An electoral bond is like a promissory note that can be bought by any Indian citizen or company incorporated in India from select branches of the State Bank of India.
    • The citizen or corporate can then donate the same to any eligible political party of his/her choice.
    • The bonds are similar to banknotes that are payable to the bearer on demand and are free of interest.
    • An individual or party will be allowed to purchase these bonds digitally or through a cheque.

    How to invest?

    • The bonds will be issued in multiples of Rs 1,000, Rs 10,000, Rs 100,000 and Rs 1 crore (the range of a bond is between Rs 1,000 to Rs 1 crore).
    • These will be available at some branches of SBI.
    • A donor with a KYC-compliant account can purchase the bonds and can then donate them to the party or individual of their choice.
    • Now, the receiver can encash the bonds through the party’s verified account. The electoral bond will be valid only for fifteen days.
    • The 29 specified SBI branches are in cities such as New Delhi, Gandhinagar, Chandigarh, Bengaluru, Bhopal, Mumbai, Jaipur, Lucknow, Chennai, Kolkata and Guwahati.

    Issues with them

    • The plea has argued that the sale of electoral bonds had become an avenue for shell corporations and entities to park illicit money and even proceeds of bribes with political parties.
    • There are documents from the RBI and the Election Commission that say the electoral bonds scheme is detrimental to democracy.

    Govt.’s view: Anonymity of the donor matters

    • The government has defended the scheme in court, saying it allowed anonymity to political donors to protect them from “political victimisation”.
    • The Ministry of Finance’s affidavit in the top court had dismissed the Election Commission’s version that the invisibility afforded to benefactors was a “retrograde step” and would wreck transparency in political funding.
    • The government affidavit had said the clause of secrecy was a product of “well-thought-out policy considerations”.
    • It said the earlier system of cash donations had raised a “concern among the donors that, with their identity revealed, there would be competitive pressure from different political parties receiving donation”.

  • Kerala HC restrains Centre over new IT Rules

    The Kerala High Court has restrained the Centre from taking coercive action against a legal news portal, for any non-compliance with Part III of the new IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

    What was the petition?

    Three-tier mechanism

    • The petition said Part III of the rules imposed unconstitutional three-tier complaints and adjudication structure on publishers.
    • This administrative regulation on digital news media would make it virtually impossible for small or medium-sized publishers, such as the petitioner, to function.
    • It would have a chilling effect on such entities, the petition said.
    • The creation of a grievance redressal mechanism, through a governmental oversight body (an inter-departmental committee constituted under Rule 14) amounted to excessive regulation, the petitioner contended.

    Violation of free speech

    • The petitioner pointed out that Rule 4(2), which makes it mandatory for every social media intermediary to enable tracing of originators of information on its platform, violated Article 19(1)(a) (freedom of speech and expression).
    • It also deprived the intermediaries of their “safe-harbour protection” under Section 79 of the IT Act.

    Violation of Right to Privacy

    • The rules obligate messaging intermediaries to alter their infrastructure to “fingerprint” each message on a mass scale for every user to trace the first originator.
    • This was violative of the fundamental right of Internet users to privacy.

  • [pib] SDG India Index, 2021

    The third rendition of India’s Sustainable Development Goals (SDG) Index will be launched by NITI Aayog today.

    First launched in December 2018, the index has become the primary tool for monitoring progress on the SDGs in the country and has simultaneously fostered competition among the States and UTs.

    SDG India Index

    • The index measures the progress at the national and sub-national level in the country’s journey towards meeting the Global Goals and targets.
    • It has been successful as an advocacy tool to propagate the messages of sustainability, resilience, and partnerships, as well.
    • From covering 13 Goals, 39 targets, and 62 indicators in the first edition in 2018-19 to 17 Goals, 54 targets and 100 indicators in the second; this third edition of the index covers 17 Goals, 70 targets, and 115 indicators.

    Aims and objectives

    • The construction of the index and the ensuing methodology embodies the central objectives of measuring the performance of States and UTs on the SDGs and ranking them.
    • It aims at supporting States and UTs in identifying areas which require more attention; and promoting healthy competition among them.

    Methodology and Process

    • The index estimation is based on data on indicators for the first 16 goals, with a qualitative assessment for Goal 17.
    • The technical process of target setting and normalization of scores follow the globally established methodology.
    • While target setting enables the measurement of the distance from the target for each indicator, the process of normalization of positive and negative indicators allows for comparability and estimation of goal wise scores.
    • The composite score of a State is derived by assigning each goal the same weight, keeping in mind the indivisible nature of the 2030 Agenda.
    • The selection of indicators is preceded by a consultative process undertaken in close coordination with MoSPI, Union Ministries and stakeholders from States and UTs.

    Highlights of the 2021 Report

    *The launch has been postponed due to model code of conduct by the Election Commission.

    Its significance

    • The index represents the articulation of the comprehensive nature of the Global Goals under the 2030 Agenda while being attuned to the national priorities.
    • The modular nature of the index has become a policy tool and a ready reckoner for gauging the progress of States and UTs on the nature of goals including health, education, gender, economic growth and climate change and the environment.

    Back2Basics: Sustainable Development Goals

    • The UN General Assembly in its 70thSession considered and adopted the Sustainable Development Goals (SDGs) for the next 15 years.
    • The 17 SDGs came into force with effect from 1st January 2016.
    • Though not legally binding, the SDGs have become de facto international obligations and have potential to reorient domestic spending priorities of the countries during the next fifteen years.
    • Countries are expected to take ownership and establish a national framework for achieving these Goals.
    • Implementation and success will rely on countries’ own sustainable development policies, plans and programmes.