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GS Paper: GS2

  • Explained: The Cairn Tax Dispute

    In December 2020, a three-member tribunal at the Permanent Court of Arbitration in the Netherlands ruled against India in its long-running tax dispute with the U.K.-based oil and gas company Cairn Energy.

    PCA Ruling against India

    • The tribunal ordered India to pay about $1.4 billion to the company.
    • Following this, Cairn Energy has successfully moved courts in five countries, including the US and the UK to recognise its claim as per the arbitration award.
    • The Netherlands, France, and Canada are the other three countries.
    • Such recognition by courts opens the door for Cairn Energy to seize assets of the Indian government in these jurisdictions by way of enforcing its claim, in case the latter doesn’t pay its dues.

    What is the dispute about?

    • The dispute started in early 2014 when Indian tax authorities started questioning Cairn Energy requesting information on the group’s reorganization in the financial year 2006-07.

    Issue over the tax due

    • This escalated, and by 2015, the authorities had sent the company a draft assessment order, assessing in the process that there was a principal tax amount of $1.6 billion that was due.
    • The year in reference, 2006-07, was one in which big corporate changes and developments took place in Cairn Energy.

    Basis of the tax demand: Sale of Shares

    • It was the year in which it not only undertook a corporate reorganization but also floated an Indian subsidiary, Cairn India, which in early 2007 got listed on the Indian Stock Market.
    • Through the corporate reorganization process, Cairn Energy had transferred all of its India assets, which were until then held by nine subsidiaries in various countries, to the newly-formed Cairn India.
    • But the tax authorities claimed that in the process of this reorganization, Cairn Energy had made capital gains worth ₹24,500 crores.
    • This, the department asserted, was the basis of the tax demand.

    Is this case similar to Vodafone’s battle with the government?

    • The Vodafone case in 2007 was triggered by Hong Kong’s Hutchinson Telecommunications’ sale of its stake in India’s Hutchinson Essar to Vodafone based out of the Netherlands.
    • The Hong Kong firm made a capital gain on this, which the Indian tax authorities deemed fit to tax.
    • They held that Vodafone should have withheld the tax, and therefore imposed liability on it.
    • The Supreme Court quashed the taxman’s demand that the sale of shares, in this case, would amount to transfer of a capital asset within the meaning of Section 2(14) of the Indian Income Tax Act”.

    What governs the Sale of Shares?

    • In the Union Budget of 2012, the Income Tax Act, 1961 was amended to make sure that even if a transfer of shares takes place outside India, such a transfer can be taxed.
    • This was done when the value of those shares is based on assets in India. And this was applied retrospectively.

    Cairn won over Retrospection

    • The action against Cairn Energy was based on this move.
    • India lost its arbitration case against Vodafone as well, with the government being asked to fork out around ₹80 crores.

    What happened after the tax claims in the Cairn Energy dispute?

    • After receiving a draft assessment order from the tax authorities, Cairn UK Holdings Ltd. appealed before the Income Tax Appellate Tribunal.
    • The tribunal, while providing the company relief from back-dated interest demands, however, upheld the main tax demand.
    • The company had initiated proceedings of arbitration under the U.K.-India bilateral investment treaty.
    • But during this time, the government sold Cairn’s almost 5% holding and seized dividends totalling ₹1,140 crore due to it from those shareholdings and set off a ₹1,590-crore tax refund against the demand.

    What was the main argument of Cairn Energy during the arbitration?

    • The claimants, Cairn Energy and Cairn UK Holdings argued that till the amendment was made to tax retrospectively in 2012, there was no tax on indirect transfers.
    • Indirect transfers here meant transfer by a non-resident of shares in non-Indian companies which indirectly held assets in India.
    • The application of the 2012 amendments, they alleged, constituted “manifest breaches” of the U.K.-India bilateral investment treaty.

    What was India’s defence during the arbitration?

    • India’s counter to the main charge of Cairn Energy was that its 2006 transactions were taxable irrespective of the 2012 amendments.
    • It argued that “Indian law has long permitted taxation where a transaction has a strong economic nexus with India”.
    • It said even if it is retrospective, it is “valid and binding applying the longstanding constitutional, legislative and legal framework in which the claimants have invested”.

    What did the arbitration tribunal rule?

    • The tribunal said the tax demand violated the U.K.-India bilateral investment treaty.
    • The tribunal said India “failed to accord Cairn Energy’s investments fair and equitable treatment” under the bilateral protection pact it had with the United Kingdom.
    • It also ordered India to compensate Cairn Energy and its subsidiary for “the total harm suffered” as a result of the breaches of the treaty.

    India’s way ahead

    • It has been reported in the media that India will appeal against the tribunal’s decision.
    • If enforcement proceedings are initiated, India is confident of addressing them and will strongly defend its interests.

    Back2Basics: Permanent Court of Arbitration (PCA)

    • It is an intergovernmental organization located in The Hague, Netherlands.
    • It is not a court in the traditional sense but provides services of arbitral tribunal to resolve disputes that arise out of international agreements between member states, international organizations or private parties.
    • The cases span a range of legal issues involving territorial and maritime boundaries, sovereignty, human rights, international investment, and international and regional trade.
    • The PCA is constituted through two separate multilateral conventions with a combined membership of 122 states.
    • The organization is not a United Nations agency, but the PCA is an official United Nations Observer.

  • How scarcity of jobs is fuelling nativism in the States

    The article examines the factors contributing to the States pursuing domicile based employment policies.

    What is driving states to provide reservation to locals in private jobs

    • The Haryana government has recently passed legislation that mandates companies in Haryana to provide jobs to local Haryanvis first.
    • The unemployment rate in Haryana is the highest of all States in India, as per data from the Centre for Monitoring Indian Economy, or CMIE.
    • The cabinet of the government of Jharkhand approved similar legislation to reserve jobs for Jharkhand residents.
    • The Dravida Munnetra Kazhagam (DMK) in Tamil Nadu announced a similar proposal in its manifesto for the upcoming Assembly elections.
    • Such moves have attracted criticism from economists and commentators
    • Creating more jobs, not on reserving the few available ones’ is the popular refrain.
    • Creation of new jobs is not entirely in the control of State governments. It is a complex interplay of multitude of factors.

    Factors playing role in job creation

    • Job creation is obviously an outcome of the performance of the larger economy.
    • Chief Minister of a State in India has limited control over the management of the larger economy and thereby, attract new investors and businesses who can create jobs.
    • Businesses need abundant high quality skilled and unskilled labour, land at affordable prices, uninterrupted supply of electricity, water and other such ‘ease of business’ facilities for its expansion.
    • State governments in India can theoretically compete with each on these parameters.
    • Further, any tax advantages that a particular State can provide vis-à-vis others will increase its attractiveness.
    • But, realistically in India, in very few of these parameters can a poorer State compete against a richer State.

    Issues faced by the States

    • The availability of skilled local labour is a function of many decades of social progress of the State and cannot be retooled immediately.
    • After the introduction of the Goods and Services Tax (GST), State governments in India have lost their fiscal autonomy and have no powers to provide any tax concessions to businesses.
    • Beyond all these, the most critical factor in the choice of a location for a large business is what economists term as the ‘agglomeration effect’
    • Agglomeration effect is the ecosystem of supply chain, talent, good living conditions and so on attracting the other businesses.
    • So, a State with an already well-established network of suppliers, people, schools, etc. are at a greater advantage to attract even more businesses.
    • It is due to this agglomeration effect that the three richest large States (Maharashtra, Tamil Nadu and Karnataka) are three times richer than the three poorest large States (Bihar, Uttar Pradesh and Madhya Pradesh), in per-capita income, compared to 1.4 times in 1970.
    • In the absence of a level playing field and with no fiscal autonomy, it is enormously difficult for developing States in India to attract new investments and create new jobs.

    Consider the question “Examine the factors contributing to the nativist tendencies in the employment within the States. Suggest the measures to deal with the issue.”

    Conclusion

    Until the economic playing fields for the various States are levelled and much greater fiscal freedom provided to the States, “don’t protect but create jobs” will only remain a topic of a hollow lecture and moral sermons.

  • Factors driving India’s growing security footprints in West Asia

    The article examines the factors that are leading to a growing footprint of Asian economies in West Asia.

    Growing interest of Asian Economies  in West Asia

    • This month, a contingent of the Indian Air Force participated in a multi-nation exercise hosted by the United Arab Emirates (UAE) named Desert Flag (March 3-27).
    • Other than India and the UAE, Bahrain, France, Saudi Arabia, South Korea and the United States are also participating.
    • While joint exercises in West Asia between Arab states and their western counterparts is common, the 2021 edition’s involvement of contingents from India and South Korea.
    • This showcases the growing interests of Asian economies.
    • As net importers of crude oil, these Asian economies rely heavily on the West Asian states for their supplies,
    • And, by association, Asian economies have increased stakes in the safety and security of the region from the perspective of political and economic stability.
    • And more importantly, in the protection of vital sea lanes in areas such as the Strait of Hormuz, the Gulf of Aden and the Red Sea stretching out into the Arabian Sea and the wider Indian Ocean.

    Declining U.S. influence

    • In April 2020, Saudi Arabia was India’s top supplier of oil followed by Iraq.
    • For South Korea, in late 2019, it was also Saudi Arabia as the top supplier.
    • The participation of both India and South Korea in these exercises in the Persian Gulf is reflective of these trends and growing concerns in Asian capitals over an eroding U.S. security blanket in the region.

    Tension in Iran-U.S. relations

    • Both India and South Korea have found themselves caught in regional tensions as the pressure on Iran to restart the 2015 nuclear agreement (Joint Comprehensive Plan of Action, or JCPOA) increases.
    • Both India and South Korea have faced carbon-copy consequences over the past decade as the West first negotiated with Iran, and later tried to manage the fallout of the JCPOA collapse.

    India’s role in protecting it’s energy interests

    • The idea of Asian nations having to band together to protect their energy interests in West Asia is not new.
    • Former Indian diplomats have even suggested an idea equitable to an ‘importers OPEC’ led by Asian states which today have a much larger stake in West Asia’s oil than the West.
    • The Indian Navy has made multiple port calls from the UAE and Kuwait to Iran and Qatar in recent years.
    • In 2020, India had also planned its first bilateral naval exercise with Saudi Arabia.

    Consider the question “Examine the factors responsible for India’s growing security footprint in West Asia and how India is achieving its objectives?”

    Conclusion

    Regional states will become more responsible for their own security, and as Asian economies become stronger stakeholders, their geopolitics will become more visible across this geography.

  • Bureaucrats cannot be State Election Commissioners: SC

    The Supreme Court gas held that independent persons and not bureaucrats should be appointed State Election Commissioners.

    No bureaucrats in SEC

    • The judgment came on an appeal against an order of the Bombay High Court which had set aside the election notification issued by the Goa State Election Commission in some municipalities.
    • Justice F. Nariman, in a judgment, said giving government employees the additional charge of State Election Commissioners is a “mockery of the Constitution”.
    • It said government employees holding the post of State Election Commissioners as additional charge should give up the post.
    • The Supreme Court said its direction should be followed strictly.

    Why such a move?

    • Under the constitutional mandate, it is the duty of the State to not interfere with the functioning of the State Election Commission.
    • The independence of Election Commissions cannot be compromised at any cost, the Bench said.

    State Election Commission

    • Under the 73rd and 74th constitutional amendment acts, State Election Commissions were created for every state to conduct elections to panchayats and municipalities.
    • The SECs came into as envisaged in Articles 243K and 243ZA of the Constitution of India.
    • The above Articles provide that the superintendence, direction and control of the preparation of electoral rolls for, and the Conduct of all elections to the Panchayats and Municipalities shall vest in the SEC.
    • The Constitution itself has facilitated provision for smooth, free and fair, regular elections to the Local bodies and has, therefore, entrusted the SEC with the responsibility for holding such elections.
    • In the domain of the elections to the local bodies, the SEC functions independently and has the same powers and duties as that of the Election Commission of India.

    Try this PYQ:

    Q.The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country, provides for which of the following?

    1. Constitution of District Planning Committees.
    2. State Election Commissions to conduct all panchayat elections.
    3. Establishment of State Finance Commissions.

    Select the correct answer using the codes given below:

    (a) Only 1

    (b) 1 and 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

    The Election Commissioner

    • The State Election Commissioner is appointed by the Governor.
    • It has the status, salary and allowance of a Judge of a High Court and cannot be removed from office except in the like manner and on the like grounds as a Judge of a High Court.
    • The Election Commissioner is also the Chairman of the Delimitation Commission.

    Its duties

    • The first and foremost duty of the SEC is to prepare the elector rolls of Panchayats, Municipalities and Municipal Corporation and conduct their elections.

    In addition to the above functions, the State Election Commission has also the following functions:

    1. Conduct of elections to the offices of the Mayor/Chairman/President/Deputy Mayor/Vice Chairman/Vice President and the no-confidence motion against them.
    2. Conduct of the Elections to various Standing Committees and their Chairpersons
    3. Determination of disqualification of elected members/Councilors.
    4. Determination of disqualification of elected members on the ground of defection.

    Back2Basics: Election Commission of India (ECI)

    • ECI is an autonomous and permanent constitutional authority responsible for administering election processes in India at the national and state level.
    • The body administers elections to the Lok Sabha, Rajya Sabha, State Legislative Assemblies, State Legislative Councils and the offices of the President and Vice President of the country.
    • The EC operates under the authority of the Constitution per Article 324 and subsequently enacted the Representation of the People Act.
    • The commission has the powers under the Constitution, to act in an appropriate manner when the enacted laws make insufficient provisions to deal with a given situation in the conduct of an election.
    • Being a constitutional authority, EC is amongst the few institutions which function with both autonomy and freedom, along with the country’s higher judiciary, the UPSC and the CAG.

  • How to grow better colleges

    The article highlights the important role students can play in improving the quality of colleges and institution in India.

    Improving the colleges

    • The global QS ranking is out and India has 12 universities and institutions in the top-100 in particular subjects.
    • We have many colleges offering higher education but typically they are not very good.
    • Today, with a huge number of students going to college, education is tied strongly to career prospects.
    • If studying and thinking harder do not lead to even a decent chance of career improvement, it is natural for most students to lose academic ambition.

    Career prospects in various colleges

    • For admission in IIT, many work extremely hard to secure admission, but then lose motivation and drift towards near-certain graduation.
    • IIT admission is a value signal to future employers who do not see much relevance in the actual syllabus.
    • The entry wall is high, the exit wall is low, and the four-year syllabus is an obstacle course between the student and an employer with whom eye contact was made from atop the entry wall itself.
    • Students of varied subjects thus remain uninterested in their core syllabi.
    • Lower-ranked colleges may attract a slightly different mix of employment prospects, some in core areas.
    • In many colleges, both good and bad ones, high grades correlate only loosely with career outcomes. 

    Improving the college

    • Very few jobs actually require the highest quality education — the best academic and research jobs.
    • In such a system, it may not be worthwhile or even practical for a mediocre college to unilaterally improve itself.
    • Having improved, it remains to convince society that it deserves to displace the pre-eminent colleges at the top.
    • For lower-ranking colleges to improve itself, its students must first see useful value in a better education.
    • That requires system-wide growth in opportunity.

    How to achieve system-wide growth in opportunity

    • Such growth cannot be legislated from above. It must occur organically, from below.
    • There are several stakeholders involved in such transition.
    • 1) At the top are policymakers.
    • Policymakers are trying and have achieved many things.
    • In recent years, however, our demographics have caught up with us.
    • We have more than 650 million people under age 25.
    • No other country is close. We need more than policies.
    • 2) Next is industry. It faces a learning curve for technology.
    • Countries that wish to lead must develop their own technology, even at high cost.
    • Indian industry can often choose between importing slightly older technology from outside or developing things in-house.
    • A slow growth in the latter has begun and may pull our college system upward over time.
    • 3) Our next stakeholders are college teachers.
    • For a college to flourish, it needs many students who compete to enroll.
    • Our entrance exams for good engineering colleges are hard.
    • Our nationally renowned degree colleges which admit based on board marks are frequently forced to set very high cutoffs.
    • The need for more engineering colleges, for many students who are clearly good enough, has led to the creation of several private colleges that teach well in large volumes.
    • Quality of teachers’ is improving.
    • College teachers improve as their employers aim higher, and as their students bring more into the classroom.
    • 4) Finally, we have students. If students demand better instruction, colleges will sooner or later supply it.

    Way forward for students

    • Students must aim to relate their learning to society.
    • They must see their learning not as an obstacle course but as an initiation into a process that yields tangible long-term value.
    • Indian society does not merely have people looking for work.
    • It also has work looking for people: Work in food, health, design, manufacturing, transport, safety, garbage, water, energy, farming, and a hundred other things that we can do better.
    • Room for improvement is plentiful, though the market models may not be efficient or mature yet.
    • The walls between our classrooms and our lives must be broken, if our colleges are to flourish.
    • In recent decades, India has also attracted much work from overseas. Growth in that direction may well be sustained.

    Consider the question “India has many colleges and institutions offering higher education but few could get the spot in the list of top global institutes. Examine the factors responsible for this. Suggest the measures to deal with this issue.”

    Conclusion

    Such change, driven by student aspirations, will be organic, bottom-up, and unstoppable.

  • [pib] 17 States implement One Nation One Ration Card System

    Seventeen (17) States have successfully operationalised the “One Nation One Ration Card system” with Uttarakhand being the latest State to complete the reform.

    Practice question for mains:

    The ‘One nation one ration card ‘scheme would bring perceptible changes to the lives of India’s internal migrant workers. Comment.

    One Nation One Ration Card

    • This scheme aims to ensure all beneficiaries, especially migrants get ration (wheat, rice and other food grains) across the nation from any Public Distribution System (PDS) shop of their own choice.
    • Under the existing system, a ration cardholder can buy food grains only from the fair price shop (FPS) in the locality where he or she lives.
    • It was also launched with the purpose that no poor person should be deprived of getting subsidised food grains under the food security scheme when they shift from one place to another.
    • It aims to reduce instances of corruption by middlemen and fraudulence in ration cards to avail benefits from different states.

    Who is eligible under this scheme?

    • Any citizen, who is declared under the Below Poverty Line (BPL) category, will be eligible to get the benefit of this scheme across the country.
    • The beneficiaries will be identified on the basis of their Aadhar based identification through the electronic point of sale (PoS) device.
    • All the PDS shops will have the facility of electronic PoS devices.

    Impact on states

    • The reform enables the States to better targeting of beneficiaries, elimination bogus/ duplicate/ineligible cardholders resulting in enhanced welfare and reduced leakage.
    • An additional borrowing limit of 0.25 per cent of the Gross State Domestic Product (GSDP) is allowed to the States only on completion of both of the following actions:
    1. Aadhar Seeding of all the ration cards and beneficiaries in the State
    2. Automation of all the FPSs in the State.

    Back2Basics: Public distribution system (PDS)

    • The public distribution system (PDS) is an Indian food Security System established under the Ministry of Consumer Affairs, Food, and Public Distribution.
    • PDS evolved as a system of management of scarcity through the distribution of food grains at affordable prices.
    • PDS is operated under the joint responsibility of the Central and the State Governments.
    • The Central Government, through the Food Corporation of India (FCI), has assumed the responsibility for procurement, storage, transportation and bulk allocation of food grains to the State Governments.
    • The operational responsibilities including allocation within the State, identification of eligible families, issue of Ration Cards and supervision of the functioning of FPSs etc., rest with the State Governments.
    • Under the PDS, presently the commodities namely wheat, rice, sugar and kerosene are being allocated to the States/UTs for distribution.
    •  Some states/UTs also distribute additional items of mass consumption through PDS outlets such as pulses, edible oils, iodized salt, spices, etc.

  • The IT Rules 2021 seek regulatory parity, but threaten to curb creative freedom

    The article argues that IT Rules 2021 far exceeds the rulemaking power granted under Section 69A of the IT Act.

    Censoring online video streaming

    • Online video streaming platforms have marked a new dawn for the Indian entertainment industry.
    • The spectre of government regulation and criminalisation haunts this fledgling industry.
    • There have been various efforts to censor online video streaming platforms by petitioning the courts for a long time.
    • At least 23 petitions were being heard by different high courts on the issue of regulation of online video streaming platforms.
    • The grievances range from wounded religious sentiments to moral outrage against depictions of sexuality but the common thread that unites them is a desire to control what other citizens may watch in the privacy of their homes.
    • In addition to petitions seeking heavy-handed regulation, criminal proceedings have been initiated against employees of companies like Netflix and Amazon Prime.
    • While such FIRs may be in the context of specific films or shows, they cause substantial harassment and threaten the personal liberty of content creators and company executives.

    IT Rules 2021 exceeds the rulemaking power under Section 69A of IT Act

    • The imposition of any kind of criminal liability under the IT Rules 2021 would far exceed the central government’s rule-making power under Section 69A of the IT Act.
    • The existing three-tier regulatory mechanism and content classification system prescribed under the rules are also unconstitutional for the same reason.
    • The following three issues need to be considered while considering the IT Rules 2021.
    • First, the powers under Section 69A can be exercised only in the interest of the sovereignty, defence, security of the State, friendly relations with foreign States or public order or for preventing incitement etc.
    • The implication is that the powers under Section 69A cannot be used to regulate online content which may be obscene or sexually explicit.
    • Second, Section 69A states that the central government may direct “any agency of the Government or intermediary” to block access to online content but online video streaming platforms do not fall into either of these two categories.
    • Companies like Netflix and Amazon Prime commission or license the films and shows available on their platforms, and they are not an “intermediary” under the IT Act.
    • Third, Section 69A only grants the central government the power to “block for access by the public or cause to be blocked for access by the public any information generated, transmitted, received, stored or hosted in any computer resource.”
    • However, the range of powers granted under the IT Rules 2021 is much broader and includes requiring an apology or disclaimer, re-classification of content and deletion or modification of content.
    • As a result, the IT Rules 2021 significantly expand the scope of powers available under Section 69A.

    Issues with the three-tier regulatory framework

    • The three-tier regulatory framework created under the rules suffers from the substantive problem of lack of independence.
    • The third tier, which is the Inter-Departmental Committee, comprises entirely of bureaucrats and there is no guaranteed representation from the judiciary or civil society.
    • The Review Committee constituted under Rule 419A of the Indian Telegraph Rules, 1951 also solely consists of officials belonging to the executive branch.

    Way forward

    • The solution is to start afresh with publication of a white paper which clearly outlines the harms that are sought to be addressed through regulation of online video streaming platforms and meaningful public consultation which is not limited to industry representatives.
    • If regulation is still deemed to be necessary, then it must be implemented through legislation that is debated in Parliament instead of relying upon Section 69A of the IT Act.

    Consider the question “The IT Rules 2021 have been criticised for exceeding the rulemaking power under Section 69A of the IT Act. Examine the scope of the criticism.”

    Conclusion

    Many of the changes that the central government seeks to implement through the IT Rules 2021 may be well-intentioned and desirable. However, constitutional due process cannot be sacrificed at the altar of expediency

  • Biden’s Afghanistan Peace Plan

    The Joe Biden administration has proposed a new peace plan to the Afghan government and the Taliban, seeking to bring violence to a halt and form an interim government.

    What is Biden’s proposal?

    • The US has asked the Afghan President to show “urgent leadership in the coming weeks”.

    The proposal included many elements.

    • It has proposed an UN-led conference of representatives of Russia, China, Pakistan, Iran, India and the US to discuss a unified approach to support peace in Afghanistan.
    • It urges both sides including the Taliban to reach a consensus on Afghanistan’s future constitutional and governing arrangements.
    • It asks to find a road map to a new “inclusive government”; and agree on the terms of a “permanent and comprehensive ceasefire”.

    Why the US is making this peace push?

    • The US has pointed out that accelerating the peace process is the best way to advance the shared interests of the US and the Afghan government.
    • According to the agreement the U.S. signed with the Taliban in February 2020, American troops – currently some 2,500 troops are in Afghanistan – are set to vacate by May 1.
    • The Taliban and the Afghan government started peace talks in Doha in September last year but reached no breakthrough.
    • The Biden administration is concerned about the slow pace of the talks.

    Why is the US delaying troops withdrawal?

    • The US assessment is that if American troops are pulled out of Afghanistan, the Taliban would make quick gains.
    • So, the Biden administration’s believes that the Taliban are on the ascent.
    • It hopes that the best way to prevent a complete Taliban takeover is a regional peace process and an interim unity government.
    • The Taliban are yet to respond to America’s proposal.

    What is the Afghan government’s stand?

    • The Ghani administration has consistently been critical of the US’s direct outreach to the Taliban.
    • The Trump administration held direct talks with the Taliban, excluding the government.
    • Later, Washington put pressure on Kabul to release Taliban prisoners as part of an agreement it reached with the insurgents.
    • Even when the Doha talks between the Taliban and the Afghan government were underway, Mr Ghani made it clear that he, as elected President, is the only legitimate representative of the Afghan people.
    • He resisted making concessions to the Taliban.

    India’s position in the process

    • Since the Afghan peace process began two years ago, India’s role in it has been peripheral at best.
    • Our EAM has iterated India’s long-held support for an “Afghan-led, Afghan-owned, and Afghan-controlled” peace process.

    What lies ahead

    • While the Afghan government’s opposition to sharing power with the Taliban is well known, it is not clear whether Mr Ghani could continue to resist American pressure.
    • And if the Biden administration decides to stick to the Taliban deal and withdraw troops by May, Mr Ghani would be in a tougher spot.
    • The people of Afghanistan do not have any good options. If Ghani rejects the American offer, the war will continue forever.
    • The Taliban have already taken over much of the country’s hinterlands and are breathing down the neck of its cities.
    • Either way, the Taliban are set to make gains.

  • What is No-Confidence Motion?

    The no-confidence motion moved against the coalition government in Haryana was defeated.

    Motion of No-Confidence

    • If the government has to demonstrate its strength on the floor of the House, it can have a motion of confidence.
    • However, the opposition parties (or any member) can move a motion expressing want of confidence (no confidence) in the Council of Ministers.
    • The procedure is laid down under Rule 198 of the rules of procedure and conduct of the business of the Lok Sabha.
    • A no-confidence motion need not set out any grounds on which it is based.
    • Even when grounds are mentioned in the notice and read out in the House, they do not form part of the no-confidence motion.

    Try this PYQ:

    Consider the following statements regarding a No-Confidence Motion in India:

    1. There is no mention of a No-Confidence Motion in the Constitution of India.
    2. A Motion of No-Confidence can be introduced in the Lok Sabha only.

    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

    Its procedure

    • A no-confidence motion can be moved by any member of the House.
    • It can be moved only in the Lok Sabha and not Rajya Sabha.
    • Rule 198 of the Rules of Procedure and conduct of Lok Sabha specifies the procedure for moving a no-confidence motion.
    • The member has to give written notice of the motion before 10 am which will be read out by the Speaker in the House.
    • A minimum of 50 members have to accept the motion and accordingly, the Speaker will announce the date for discussion for the motion.
    • The allotted date has to be within 10 days from the day the motion is accepted. Otherwise, the motion fails and the member who moved the motion will be informed about it.
    • If the government is not able to prove its majority in the House, then the government of the day has to resign.

    How is the voting done?

    These are the modes by which voting can be conducted:

    1. Voice vote: In a voice vote, the legislators respond orally.
    2. Division vote: In case of a division vote, voting is done using electronic gadgets, slips or in a ballot box.
    3. Ballot vote: The ballot box is usually a secret vote – just like how people vote during state or parliamentary elections.

    What happens if there is a tie?

    • Following the vote, the person who has the majority will be allowed to form the government.
    • In case there is a tie, the speaker can cast his vote.

  • 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.