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Corruption Challenges – Lokpal, POCA, etc

Why Centre filed an application to modify 2G spectrum scam judgement

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Spectrum

Mains level: What is the 2G scam case?

Why in the news? 

Attorney General R Venkataramani, on April 22, mentioned an application filed by the Centre to modify the Supreme Court’s 2012 judgement in the 2G spectrum scam case.

What is the 2G scam case?

  • In 2008, under then Telecom Minister A Raja, the Department of Telecommunications (DoT) issued 2G spectrum licenses to specific telecom operators on a first-cum-first-serve basis.
  • In 2009 ,the Central Vigilance Commission directed the CBI to investigate claims that there were illegalities in the allocation of licenses, following which the CBI filed a first information report against unknown officers of the DoT, private persons and companies.
  • In the meantime, the Centre for Public Interest Litigation and Subramanian Swamy filed petitions at the Supreme Court alleging a Rs 70,000 crore scam in the grant of telecom licenses in 2008.
  • In 2010, the Comptroller and Auditor General of India (CAG) filed a report claiming that the allocation had caused a loss of Rs 1.76 lakh crores to the public exchequer. Raja resigned shortly after.
  • In 2011 the CBI filed its first chargesheet, in which Raja was an accused.
  • In February 2012, the Supreme Court cancelled the 122 licenses granted during Raja’s tenure. The court found that Raja had allocated licenses in 2008 based on 2001 prices in order to benefit specific private telecom operators.

Why is the Centre seeking a modification of the apex court’s decision?

  • Need for Non-commercial Use: The Centre highlights that spectrum allocation is essential not only for commercial telecommunication services but also for public interest functions such as security, safety, and disaster preparedness. These functions may not always align with the profit-oriented nature of auction processes.
  • Situational Preferences: The Centre argues that there are situations where auctions are not technically or economically preferred or optimal. This could include scenarios where there is a one-time or sporadic use of spectrum, which may not justify the complexities and costs associated with conducting auctions.
  • Court’s Clarification on Auctions: The Centre refers to the Supreme Court’s clarification in September 2012, stating that the auction method prescribed in 2012 was not a constitutional principle and not an absolute or blanket statement applicable across all natural resources. The Court expressed respect for the executive’s discretion in such matters.
  • Seeking Clarity for Administrative Process: In light of the Court’s clarification, the Centre seeks clarity on whether it can allocate 2G spectrum in the future through an administrative process if determined through due process and in accordance with the law. This indicates a desire for flexibility in spectrum allocation methods based on situational considerations and public interest needs.

Conclusion: 

Need to implement transparent processes for the allocation of public resources such as spectrum. Clearly outline the criteria, procedures, and timelines for allocation, and ensure that these are accessible to all stakeholders.Establish independent oversight bodies or regulatory agencies to monitor and audit the allocation process.

Mains PYQ:

Q What is mean by public interest? What are the principles and procedures to be followed by the civil servants in public interest? (UPSC IAS/2018)

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RBI Notifications

RBI’s latest recommendations to regulate payment aggregators in offline spaces | Explained

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Payment aggregators

Mains level: What exactly are the norms about?

Why in the news?

The Reserve Bank of India (RBI) has floated two consultation papers seeking enhanced regulation of payment aggregators carrying out face-to-face transactions. It also seeks to strengthen the ecosystem’s safety.

What is Payment Aggregators?

  • A payment aggregator is a payment solution or a platform provider that aggregates various payment modes such cards, UPI, net-banking, wallets and alternate credit products by partnering with various processing entities such as acquiring banks, direct banks (in case of net banking) and issuers of wallets and alt credit products on to a single platform.

What exactly are the norms about?  

  • Extension to Offline Transactions: The existing guidelines for payment aggregators cover their activities in e-commerce and online platforms. The latest draft proposes extending these regulations to offline spaces, including proximity or face-to-face transactions.
  • Convergence on Standards: The proposed norms aim to achieve convergence on standards of data collection and storage across online and offline transactions handled by payment aggregators.
  • Elaborate Guidelines: The proposed norms are detailed and comprehensive, reflecting lessons learned from incidents such as the Paytm Payments Bank crisis.
  • Strengthening Ecosystem: RBI’s objective seems to be strengthening the payment aggregator ecosystem against opacity and ensuring compliance with regulatory standards.
  • Penalties for Non-Compliance: The Financial Intelligence Unit (FIU-IND) imposed penalties on Paytm Payments Bank for engaging in illegal activities and failing to adhere to regulatory requirements, indicating strict consequences for non-compliance with the proposed norms.

Is registration with the RBI being made compulsory?  

The primary focus of this guidlines is on non-bank PAs and within them, the offline extensions.

  • PA based on Bank: Banks providing physical PA services as part of their normal banking relationship would not require any separate authorisation from the RBI. They are only expected to comply with the revised instructions within three months after they are issued.
  • PA without Banking: Non-banking entities providing PA services at the point of sale (PoS), that is, offline, would have to inform RBI within 60 days (after the circular is issued), about their intent to seek authorisation.

Does it talk about provisions for sustainability?  

  • Minimum net worth aims to ensure the sustainability of non-banking entities: While the proposed norms primarily focus on regulatory compliance and financial stability, the requirement for a minimum net worth aims to ensure the sustainability of non-banking entities providing proximity/face-to-face transaction services. This is because entities with a stronger financial base are better positioned to weather economic challenges and uncertainties, thus promoting sustainability in the long run.
  • Risk-Based Payments: Payment aggregators are required to assign risk-based payments to merchants, focusing on sustainability. This involves assessing the risk associated with each merchant and adjusting payment terms accordingly.

What about KYC requirements?  

  • Extended Scope of KYC: The proposed regulations aim to extend the scope of Know Your Customer (KYC) requirements for merchants onboarded by payment aggregators. While KYC is already mandatory, the regulations seek to make the provisions more nuanced.
  • Document Verification for Medium Merchants: Medium merchants, with a higher annual turnover threshold, must undergo additional document verification. Payment aggregators are expected to verify one official document each of the proprietor, beneficial owner or attorney holder, and the stated business.
  • Ongoing Compliance Monitoring: Payment aggregators must ensure that transactions undertaken by their merchants are in line with their business profiles. This involves ongoing monitoring to ensure compliance with KYC requirements and business activities.

Conclusion: 

The proposed norms aim to achieve convergence on standards of data collection and storage across both online and offline transactions handled by payment aggregators. This helps in streamlining regulatory requirements and ensuring consistency in data management practices.

Mains PYQ 

How can the Digital India program help farmers to improve farm productivity and income? What step has the government taken in this regard? (UPSC IAS/2015)

With Inputs from:

https://www.thehindu.com/business/rbi-clampdown-on-lenders-could-moderate-credit-growth-in-2024-25/article67994838.ece

https://www.thehindu.com/business/Industry/rbi-to-introduce-offline-erupee-transactions-soon-shaktikanta-das/article67824286.ece

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Judicial Appointments Conundrum Post-NJAC Verdict

SC declines plea against Collegium system to protect public’s best interest

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Registrar of supreme court

Mains level: Collegium system

Why in the news? 

The petition, filed by advocate Mathews Nedumpara, seeks a revival of the NJAC. SC Registrar says the issue is already settled, and a repeat litigation is a “needless waste of judicial time and energy”

What is the Registrar of supreme court?

  • The registrar is a chief executive officer of a judicial forum. They are in charge of the entire registry of the department.

What is NJAC (National Judicial Appointments Commission)? 

  • In August 2014, Parliament passed the Constitution (99th Amendment) Act, 2014 along with the National Judicial Appointments Commission (NJAC) Act, 2014, providing for the creation of an independent commission to appoint judges to the Supreme Court and high courts.
  • In 2015, Supreme Court struck down the National Judicial Appointments Commission (NJAC) and the 99th Amendment

Actually, Collegium system is used for the appointment of SC Judges 

First Judges Case (1981): 

  • Also known as S.P. Gupta case (December 30, 1981), the Supreme Court held that consultation does not mean concurrence and it only implies exchange of views
  • It declared that the “primacy” of the Chief Justice of India (CJI)s recommendation on judicial appointments and transfers can be refused for “cogent reasons.”
  • The ruling gave the Executive primacy over the Judiciary in judicial appointments.

Second Judges Case (1993):

  • SC reversed its earlier ruling and changed the meaning of the word consultation to concurrence.
  • Hence, it ruled that the advice tendered by the Chief Justice of India is binding on the President in the matters of appointment of the judges of the Supreme Court.
  • But, the Chief Justice would tender his advice on the matter after consulting two of his senior most colleagues (this was considered as Collegium)
  • The collegium can veto the government if the names are sent back by the latter for reconsideration.
  • The basic tenet behind the collegium system is that the judiciary should have primacy over the government in matters of appointments and transfers in order to remain independent.
  • The opinions of each member of the Collegium and other judges consulted should be made in writing and form part of the file on the candidate sent to the government.
  • Thus, the executive element in the appointment process was reduced to a minimum.
  • If the CJI had consulted non-judges, he should make a memorandum containing the substance of consultation, which would also be part of the file. After the receipt of the Collegium recommendation, the Law Minister would forward it to the Prime Minister, who would advise the President in the matter of appointment.

Third Judges Case (1998):

  • SC on President’s reference expanded the Collegium to a five-member body, comprising the CJI and four of his senior-most colleagues while HC collegium is led by its Chief Justice and four other senior most judges of that court.
  • Names recommended for appointment by a HC collegium reaches the government only after approval by the CJI and the SC collegium.

Conclusion: 

The primary argument against the NJAC was that it could potentially undermine judicial independence by giving the executive a significant role in judicial appointments. Any alternative system, including a revised version of the NJAC, would need to ensure that judicial independence is safeguarded.

Mains PYQ 

Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to appointment of judges of higher judiciary in India.

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

Madras High Court Ruling on Waqf Properties

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Doctrine of Repugnancy; Sachar Committee, Article 254, Waqf

Mains level: NA

Why in the news?

  • The Madras High Court ruled the Tamil Nadu Public Premises (Eviction of Unauthorised Occupants) Amendment Act of 2010 as repugnant and unconstitutional.
  • The amendment conferred authority on the Tamil Nadu Waqf Board CEO to order evictions, contradicting with the Central legislation, the Waqf Act of 1995.

Madras HC Verdict:

  • Parliament’s 2013 amendment to Waqf Act prevails over Tamil Nadu’s legislation.
  • It already provides uniform and effective mechanisms for possession recovery.

Arguments made by TN:

  • Lawyers argue 2010 amendment exercised power under Concurrent List, required Presidential assent.
  • State law and Central law cannot co-exist, Parliament’s 2013 amendment prevails.
  • Original provisions of Waqf Act not sufficient to deal with encroachments.
  • Tamil Nadu enacted 2010 amendment based on Sachar Committee recommendation.

Sachar Committee:

A seven-member high-level committee headed by former Chief Justice of Delhi High Court Rajinder Sachar to study the social, economic, and educational condition of Muslims in March 2005.

 

What is Doctrine of Repugnancy?

  • The doctrine of repugnancy arises when two laws conflict and produce different outcomes when applied to the same situation.
  • It occurs when the provisions of two laws are so contradictory that complying with one law would mean violating the other.
  • Article 254 of the Indian Constitution establishes the Doctrine of Repugnancy in India, providing a framework for resolving conflicts between Central and State laws.
  • It resolves conflicts between Central and State laws.

Key Provisions of Article 254:

1.    Article 254(1):

  • Declares that if a law passed by a State Legislature contradicts a law passed by Parliament, the State law will be deemed void.
  • The law enacted by Parliament will take precedence over the State law.

2.    Article 254(2):

  • Allows States to enforce legislation that contradicts Parliament’s laws if they receive assent from the President.

 

PYQ:

[2016]  The Parliament of India acquires the power to legislate on any item in the State List in the national interest if a resolution to that effect is passed by the:

(a) Lok Sabha by a simple majority of its total membership

(b) Lok Sabha by a majority of not less than two-thirds of its total membership

(c) Rajya Sabha by a simple majority of its total membership

(d) Rajya Sabha by a majority of not less than two-thirds of its members present and voting


Back2Basics: What is Waqf property and what does the Waqf Act state?

Details
Enactment
  • Enacted by Jawaharlal Nehru in 1954 to centralize Waqf properties.
  • Led to the formation of the Central Waqf Council in 1964.
  • Amended in 1995 under the Congress government of PV Narasimha Rao, granting extensive powers to Waqf Boards.
Key Provisions
  • Section 3(R) of the 1995 amendment designates properties as Waqf if deemed sacred, religious, or charitable according to Muslim law.
  • Article 40 mandates the Waqf Surveyor and Board to determine property ownership.
  • 2013 amendments require State Waqf Boards to appoint Survey Commissioners to manage properties and settle disputes.
Legal Status Property declared as Waqf cannot be contested in court; appeals must be made to the Waqf Board.
Chairmanship
  • Union Minority Welfare Minister serves as ex-officio chairman of the Central Waqf Council.
  • State Waqf Boards consist of seven Muslim members.

Waqf Property

Details
Definition
  • Property donated for charitable purposes in the name of Allah.
  • Donated by individuals for public benefit; no individual ownership rights.
Donation Criteria Must be donated by Muslims above the age of 18.
Ownership
  • Upon donation, property becomes Allah’s possession;
  • Family members have no claim after donor’s demise.
Types Includes movable or immovable property donated for charitable purposes.
Management Overseen by the Waqf Board, responsible for legal matters and property administration.
Total Properties
  • Over 8,65,646 properties registered with the Waqf Board in India.
  • Estimated to cover 8 lakh acres of land with a market value of approximately Rs 1.20 lakh crore.
  • State-wide Share:
  1. West Bengal: More than 80,000 properties registered.
  2. Punjab: 70,994 properties under Waqf Board.
  3. Tamil Nadu: 65,945 properties managed.
  4. Karnataka: 61,195 properties overseen.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Icequakes on Ross Ice Shelf

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Ross Ice Shelf, Whillans Ice Stream

Mains level: NA

Why in the news?

  • Scientists found out that the huge Ross Ice Shelf, almost as big as France, moves forward a few centimetres daily.
  • This happens because of the Whillans Ice Stream, a fast-moving river of ice that sometimes gets stuck and then suddenly moves forward.

About Ross Ice Shelf

  • Ross Ice Shelf is the largest ice shelf of Antarctica roughly the size of France.
  • It was discovered by Sir James Clark Ross on 28 January 1841.
  • The shelf spans an area of roughly 500,809 square kilometers, about the size of France or the Yukon Territory in Canada.
  • It is several hundred meters thick. In the shelf’s southern reaches, nearest the True South Pole, the ice can be as thick as 750m.
  • The nearly vertical ice front to the open sea is more than 600 km long, and between 15 and 50 meters high above the water surface. However, 90% of the floating ice is below the water surface.
  • It is fed primarily by giant glaciers, or ice streams, that transport ice down to it from the high polar ice sheet of East and West Antarctica.
  • Most of Ross Ice Shelf is in the Ross Dependency claimed by New Zealand.
  • It floats in, and covers, a large southern portion of the Ross Sea and the entire Roosevelt Island located in the east of the Ross Sea.

Spotlight: Icequakes on Ross Ice Shelf

  • Influence of Ice Stream: Most glaciers move slowly, but the Whillans Ice Stream stops and starts suddenly. This might happen because there isn’t enough water below to help it move smoothly.
  • Sudden Movements: These sudden movements, like tiny earthquakes, push against the Ross Ice Shelf.
  • Threat to Stability: Even though these daily shifts aren’t caused by humans, they could make the Ross Ice Shelf weaker over time. Ice shelves slow down the flow of ice into the ocean.
  • Retreat of Glacier: If the Ross Ice Shelf gets weaker or breaks, it could speed up melting and raise sea levels.

PYQ:

[2013] On the planet earth, most of the freshwater exists as ice caps and glaciers. Out of the remaining freshwater, the largest proportion

(a) Is found in the atmosphere as moisture and clouds

(b) Is found in freshwater lakes and rivers

(c) Exists as groundwater

(d) Exists as soil moisture

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Wetland Conservation

In the news: Pulicat Wetland

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pulicat Wetland and its topography; Eco-sensitive Zones (ESZs)

Mains level: NA

Why in the news?

  • Settlement of claims for local communities within Pulicat Wetland and Birds Sanctuary boundary raises concerns.
  • State government plans to denotify a significant portion of the sanctuary and Eco-Sensitive Zone (ESZ) for industrial park development.

About Pulicat Wetland and Birds Sanctuary

  • Pulicat Lake Bird Sanctuary is the second-largest bird sanctuary in India.
  • It cuts across Nellore district of Andhra Pradesh and Thiruvallur district of Tamil Nadu.
  • The sanctuary is situated along the coast of the Bay of Bengal covering an area of 759 square kilometers.
  • The sanctuary is bordered by the Arani River at its southern tip, the Kalangi River from the Northwest, and the Swarnamukhi River at the northern end.
  • Pulicat Lake runs parallel to the Bay of Bengal and has a sand bar, making it a lagoon of its own kind.
  • Sriharikota, renowned as India’s rocket launch pad and home to the Satish Dhawan Space Centre, separates the lake from the Bay of Bengal.
  • The sanctuary includes 16 island villages and 30 villages adjoining the lake, whose inhabitants depend on the lake for their livelihood.
  • Pulicat Lake Bird Sanctuary hosts a large number of migratory birds during winter, including gulls, terns, plovers, shanks, curlews, and storks.
  • It is a habitat for a variety of bird species such as flamingos, pelicans, storks, herons, and ducks.

What are the Eco-sensitive Zones (ESZs)?

  •  Eco-Sensitive Zones (ESZs) or Ecologically Fragile Areas (EFAs) are areas notified by the MoEFCC around Protected Areas, National Parks and Wildlife Sanctuaries.
  • The purpose of declaring ESZs is to create some kind of “shock absorbers” to the protected areas by regulating and managing the activities around such areas.
  • They also act as a transition zone from areas of high protection to areas involving lesser protection.

 How are they demarcated?

  • The Environment (Protection) Act, 1986 does NOT mention the word “Eco-Sensitive Zones”.
  • However, Section 3(2)(v) of the Act, says that Central Government can restrict areas in which any industries, operations or processes or class of industries, operations or processes shall be carried out or shall not, subject to certain safeguards.
  • Besides Rule 5(1) of the Environment (Protection) Rules, 1986 states that central government can prohibit or restrict the location of industries and carrying on certain operations or processes on the basis of certain considerations.
  • The same criteria have been used by the government to declare No Development Zones (NDZs).

Defining its boundaries

  • An ESZ could go up to 10 kilometres around a protected area as provided in the Wildlife Conservation Strategy, 2002.
  • Moreover, in the case where sensitive corridors, connectivity and ecologically important patches, crucial for landscape linkage, are beyond 10 km width, these should be included in the ESZs.
  • Further, even in the context of a particular Protected Area, the distribution of an area of ESZ and the extent of regulation may not be uniform all around and it could be of variable width and extent.

 

PYQ:

 [2017] Consider the following statements:

1. In India, the Himalayas are spread over five States only.

2. Western Ghats are spread over five States only.

3. Pulicat Lake is spread over two States only.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1 and 3 only

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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Intergovernmental Negotiating Committee (INC-4) Meeting in Ottawa

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Intergovernmental Negotiating Committee

Mains level: NA

Why in the news?

  • The fourth session of the Intergovernmental Negotiating Committee (INC-4) is happening in Ottawa, Canada.
  • The goal is to finalize a global agreement on plastic pollution by November this year.

What is the Intergovernmental Negotiating Committee (INC)?

  • INC is a committee that aims to develop a legally binding international instrument to end plastic pollution by 2025, as mandated by United Nations Environment Assembly (UNEA) Resolution 5/14.
  • It began working in November 2022 at Punta del Este, Uruguay (INC-1).
    • The second meeting (INC-2) took place in May-June, 2023 at Paris, France.
    • The INC-3 met in Nairobi in December 2023.
  • INC is scheduled to complete its work by the end of 2024.

Key Points from INC-4:

  • Previous meetings (INC-1, INC-2, INC-3) paved the way for this one.
  • They’re focusing on cutting out unnecessary plastic use while still using it for important things like renewable energy.

Future Prospects:

  • INC-5 will happen in Busan, South Korea, and it’s meant to finalize everything.
  • After that, leaders from different countries will sign the agreement.

 

PYQ:

[2014] With reference to ‘Global Environment Facility’, which of the following statements is/are correct?

(a) It serves as financial mechanism for ‘Convention on Biological Diversity’ and ‘United Nations Framework Convention on Climate Change’

(b) It undertakes scientific research on environmental issues at global level

(c) It is an agency under OECD to facilitate the transfer of technology and funds to underdeveloped countries with specific aim to protect their environment.

(d) Both A and B

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