💥UPSC 2027,2028 Mentorship (April Batch) + Access XFactor Notes & Microthemes PDF

Archives: News

  • Innovations in Biotechnology and Medical Sciences

    The functioning of INSACOG

    The Indian SARS-CoV-2 Consortium on Genomics (INSACOG) has sequenced about 1,00,000 samples.

    What is INSACOG?

    • INSACOG is a consortium of 10 labs and 18 satellite labs across India tasked with scanning COVID samples from patients and finding the variants that has led to spike in transmission.
    • The institutes involved include the laboratories of the Department of Biotechnology, Council of Scientific and Industrial Research, Indian Council of Medical Research, and the Health Ministry.
    • Its work began in January 2020, by sequencing all samples with a history of travel from the U.K. and a proportion of positive samples in the community.

    Tasks of INSACOG

    • The NCDC is tasked with coordinating collections of samples from the States as well as correlating disease with certain mutations.
    • It is mainly involved in genomic sequencing which is done by isolating the genetic material of the coronavirus samples.
    • It is also tasked with tracking certain combinations of mutations that become more widespread in India.

    What has it found so far?

    • The INSACOG sequenced about 1,00,000 samples as of early December 2021 when this data was last made publicly available.
    • The bulk of its effort has been focussed on identifying international ‘variants of concern’ (VoC) that are marked out by the WHO as being particularly infectious or pathogenic.
    • International travellers who arrive in India and test positive are the ones whose samples usually get sent to INSACOG for determining the genomic variant.

    Why is genome sequencing useful?

    • Understanding mutations: The purpose of genome sequencing is to understand the role of certain mutations in increasing the virus’s infectivity.
    • Immune response: Some mutations have also been linked to immune escape, or the virus’s ability to evade antibodies, and this has consequences for vaccines.
    • Effectiveness of vaccines: Labs across the world, including many in India, have been studying if the vaccines developed so far are effective against such mutant strains of the virus.
    • Evolution of viruses: Studies such as this have shown that Omicron, for instance, has evolved to evade antibodies much better than the Alpha or Delta variant. This prompted the push towards booster doses.

    How is it done?

    • Genomic sequencing is done by isolating the genetic material (RNA) of the coronavirus samples.
    • RNA consists of millions of nucleotide bases and genomic sequencing is about identifying and comparing the sequence in a given sample to a reference sample.
    • Changes in the sequence are clues to mutations that show that the virus may have undergone distinct changes at some key locations.
    • There are several approaches to genome sequencing — whole genome sequencing, next-generation sequencing — that have different advantages.
    • It has now evolved to a stage where large sequencers can process even thousands of samples simultaneously.

    Various challenges that INSACOG faces

    • Geographical variations: Given that COVID-19 is spreading, mutating and showing geographical variations, the original aim of the group was to sequence at least 5% of COVID-19 samples.
    • Shortage of funds: But only 1% has been achieved yet, primarily due to a shortage of funds, insufficient reagents and tools necessary to rapidly scale up.
    • Red-tapism: The INSACOG, in spite of being peopled by expert scientists, is ultimately within the Central government’s communication structure.
    • Infrastructure lacunae: Not all INSACOG labs have the same quality of equipment and manpower and therefore a surge or spike in some cities can mean difficulties in processing.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Modern Indian History-Events and Personalities

    George Wittet, who left beautiful fingerprints across Mumbai

    The restored and refurbished Chhatrapati Shivaji Maharaj Vastu Sangrahalaya (CSMVS) (erstwhile Prince of Wales Museum) will open this month as the building enters its centenary year.

    Who was George Wittet?

    • George Wittet was born in Blair Atholl, Scotland. He studied architecture in Perth, Scotland, and worked in Edinburgh and York before arriving in India in 1904.
    • In India, he became assistant to John Begg, consulting architect to the Government of Bombay.
    • Together, they pioneered the Indo-Saracenic style, using it in many government and public buildings across Bombay.
    • About a decade later, Wittet rose to be consulting architect himself and was also elected as the first president of The Indian Institute of Architects.
    • Besides the Prince of Wales Museum, Wittet also designed the Gateway of India, a fine example of Indo-Saracenic architecture and among the most identifiable landmarks of Mumbai.

    What is Indo-Saracenic style?

    • The Indo-Saracenic style was promoted by British architects starting from the late 19th century.
    • It is exemplified by the use of elements seen in architecture across India, from Mughal structures to Hindu temples.
    • The style was dominated by Indo-Islamic elements, but sometimes combined with Gothic and neo-classical elements popular in Britain at that time.
    • Major features of the style include domes and domelets, chhattris, minarets, and open pavilions.
    • Indo-Saracenic was seen as Raj’s efforts to promote “Indian” culture, so that their colonial subjects would view them more favorably, especially after the Revolt of 1857.

    Notable monuments

    Examples from other parts of India include the magnificent:

    • Victoria Memorial in Kolkata
    • Amba Vilas Palace (Mysore Palace) in Mysuru
    • Senate House (on the Madras University campus) in Chennai
    • Secretariat Building (Central Secretariat) in New Delhi

    Mumbai’s notable architecture: CSMVS

    • The dome of the CSMVS is based on the Gol Gumbaz, the mausoleum of king Mohammed Adil Shah of Bijapur.
    • Wittet had toured the historic buildings of Bijapur, which was key to his Indo-Saracenic designs.
    • CSMVS’s finial is based on that of the Taj Mahal.
    • However, even though he won the competition for the museum’s design, it wasn’t his design that was executed finally.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Foreign Policy Watch: India-China

    China issues ‘official’ names for 15 places in Arunachal Pradesh

    China’s Ministry of Civil Affairs has issued standardized names for 15 places in the Indian State of Arunachal Pradesh, to be used henceforth on official Chinese maps.

    MEA clarification

    • The Ministry of External Affairs has dismissed the Chinese “invention”.
    • Arunachal Pradesh has always been, and will always be, an integral part of India, said MEA.

    Why is China giving names to places that are in India?

    • China claims some 90,000 sq km of Arunachal Pradesh as its territory.
    • It calls the area “Zangnan” in the Chinese language and makes repeated references to “South Tibet”.
    • Chinese maps show Arunachal Pradesh as part of China, and sometimes parenthetically refer to it as “so-called Arunachal Pradesh”.
    • China makes periodic efforts to underline this unilateral claim to Indian territory.
    • Giving Chinese names to places in Arunachal Pradesh is part of that effort.

    Earlier unilateral renamings

    • This is the second lot of “standardized” names of places in Arunachal Pradesh that China has announced.
    • Earlier in 2017, it had issued “official” Chinese names for six places spanning the breadth of Arunachal Pradesh

    What is China’s argument for claiming these areas?

    • The PRC disputes the legal status of the McMahon Line, the official boundary under the ‘Convention Between Great Britain, China, and Tibet’ — of 1914 (Simla Convention).
    • China was represented at the Simla Convention by a plenipotentiary of the Republic of China, which had been declared in 1912 after the Qing dynasty was overthrown.
    • The present communist government came to power only in 1949, when the People’s Republic was proclaimed.
    • The Chinese representative did not consent to the Simla Convention, saying Tibet had no independent authority to enter into international agreements.

    What is the McMohan Line?

    • The McMohan Line, named after Henry McMahon, the chief British negotiator at Shimla, was drawn from the eastern border of Bhutan to the Isu Razi pass on the China-Myanmar border.
    • China claims territory to the south of the McMahon Line, lying in Arunachal Pradesh.
    • China also bases its claims on the historical ties that have existed between the monasteries in Tawang and Lhasa.

    Intention behind these renamings

    • This renaming is a part of the Chinese strategy to assert its territorial claims over Indian territory.
    • As part of this strategy, China routinely issues statements of outrage whenever an Indian dignitary visits Arunachal Pradesh.
    • Beijing keeps harping on its “consistent” and “clear” position that the Indian possession of Arunachal Pradesh.
    • These claims have been firmly established and recognized by the world, as “illegal”.

    Arunachal not all-alone

    • Laying aggressive claims to territories on the basis of alleged historical injustices done to China is a part of Beijing’s foreign policy playbook.
    • The claim on Taiwan is one such example, as are the consistent efforts to change the “facts on the ground” in several disputed islands in the South China Sea.
    • The aggression is at all times backed in overt and covert ways by the use of China’s economic and military muscle.

    Also read:

    [RSTV Archive] India-China Ties Post-Galwan

     

  • Goods and Services Tax (GST)

    GST Council defers Tax Rate increase on Textiles

    Hours before the new GST rate was to take effect, the GST Council  has decided to temporarily roll back the increase in tax rate for the textiles sector.

    What was the proposal?

    • The GST Council had recommended making certain rate changes for footwear and textiles to correct the inverted duty structure.

    What is Inverted Duty Structure?

    • An inverted duty structure arises when the taxes on output or final product is lower than the taxes on inputs.
    • This creates an inverse accumulation of input tax credit which in most cases has to be refunded.

    A loss for the govt

    • Inverted duty structure has implied a stream of revenue outflow for the government prompting the government to relook the duty structure.
    • For footwear, the government refunds around Rs 2,000 crore in a year.

    What is the present rate of GST on textiles?

    • At present, tax rate on manmade fibre, yarn and fabrics is 18%, 12% and 5%, respectively.
    • Apparel and clothing up to Rs 1,000 per piece currently attracts 5% GST.

    Issues with the tax increase

    • This decision has created a negative impact resulting in drop in demand and recession.
    • The new rate structure would cause closure of around 1 lakh textile units and losses of 15 lakh jobs nationally.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

    Chisumle- Demchok: Worlds’ Highest Motorable Road

    Ladakh’s Chisumle-Demchok Road, when it crosses the Umling Pass, is now the world’s highest motorable road.

    Chisumle- Demchok Road

    • The project to build the road through the pass — a part of Border Roads Organization (BRO) Project Himank — had been completed in 2017, after which vehicles had started playing on the route.
    • The road is in south Ladakh. It passes through Umling La Pass, which is at a height of over 19,000 feet.
    • The height of the pass makes it the highest motorable road in the world, and was recently recognized as such by Guinness World Records.
    • The 52-km road ‘black-top’ tarmac road from Chisumle to Demchok betters the previous record of a road in Bolivia, which connects the volcano Uturuncu at 18,953 feet.
    • The road was built under extremely challenging conditions, as temperatures in the region can fall to below minus 40 degrees Celsius, and oxygen levels go down to 50 per cent below normal.

    Top of the world

    • At the pass, the road is higher than both the base camps for the climb to Mount Everest, the world’s highest mountain.
    • The South Base Camp in Nepal is at a height of 17,598 ft, while North Base Camp in Tibet is at 16,900 ft.
    • The Chisumle-Demchok road is also higher than the Siachen Glacier, which is situated at 17,700 feet.
    • Khardung La in Leh, which at one time was among the highest roads in the world, is at an altitude of 17,582 feet.

    Military significance of the road

    • This road provides a direct route from Chisumle, which lies on the major road coming from Leh, Karu and Nyoma.
    • All of these stations have important military stations which are close to the Line of Actual Control.
    • Demchok has been an India-China flashpoint earlier, the site of a standoff between the two armies in 2016.
    • In the current standoff in eastern Ladakh, which began in May 2020, Demchok has come up as a point of contention.

    Other benefits offered

    • The new axis will be helpful for the armed forces, making it easier to mobilize troops and equipment, including rations.
    • The road will not only enable faster movement of armed forces to the region but will also boost tourism and improve the socio-economic condition of the local people in the region.

    Certain limitations

    • Since the road goes through such a high pass, road transport will be unfeasible during the winter, when the armed forces rely on air support.

     

     

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    What are Solid-State Batteries?

    After Twitter CEO Parag Agrawal, now another Indian origin is in the headline is Jagdeep Singh, CEO and founder of a US battery startup. The reason for his recent buzz for his breakthrough battery technology.

    About QuantumScape

    • QuantumScape Corp is a battery startup backed by Volkswagen AG.
    • Its solid-state battery — lithium metal with a solid electrolyte separating the two electrodes — is seen as an exceptionally bright prospect in E-Vehicle industry.

    What are Solid-state batteries?

    • A solid-state battery is a battery technology that uses solid electrodes and a solid electrolyte, instead of the liquid or polymer gel electrolytes found in lithium-ion or lithium polymer batteries.
    • Such batteries can provide potential solutions for many problems of liquid Li-ion battery, such as flammability, limited voltage, unstable solid-electrolyte interphase formation, poor cycling performance and strength.

    What are Li-ion Batteries?

    • Lithium-ion batteries use aqueous electrolyte solutions, where ions transfer to and fro between the anode (negative electrode generally made of graphite) and cathode (positive electrode made of lithium), triggering the recharge and discharge of electrons.
    • The energy density of lithium-ion cells used in today’s mobile phones and electric vehicles is nearly four times higher than that of older-generation nickel-cadmium batteries.

    Its limitations

    • Low energy density: Despite improvements in technology over the last decade, issues such as long charging times and weak energy density persist.
    • Small appliances: While lithium-ion batteries are seen as sufficiently efficient for phones and laptops, they still lack the range that would make EVs a viable alternative.
    • Extreme reactivity: One major problem is that lithium metal is extremely reactive.
    • Corrosion of cells: The main form of lithium corrosion is dendrites (branched lithium structures) that grow out from the electrode and can potentially pierce the separator short-circuiting the cell.
    • Fire hazard: In current lithium-ion batteries, in which the electrolyte is a flammable liquid, dendrite formation can trigger a fire.

    What is the breakthrough?

    • QuantumScape claims to prevent dendrites formation.
    • It uses a solid-state separator technology that eliminates the side reaction between the liquid electrolyte and the carbon/graphite in the anode of conventional lithium-ion cells.
    • The replacement of the separator enables the use of a lithium-metal anode in place of the traditional
    • The lithium metal anode is more energy-dense than conventional anodes, which allows the battery to store more energy in the same volume, according to the company.

    Key advantages of QuantumScape Battery

    • The advantages of the solid-state battery technology include higher cell energy density (by eliminating the carbon anode), lower charge time (by eliminating the need to have lithium diffuse into the carbon particles in conventional lithium-ion cells).
    • It has the ability to undertake more charging cycles and thereby a longer life, and improved safety.
    • Lower cost could be a game-changer, given that at 30 per cent of the total cost, battery expenses are a key driver of the vehicle costs.

    India’s battery push

    • The centre is working on a blueprint for a project of around 4,000 MWh of grid-scale battery storage system at the regional load dispatch centres that control the country’s power grid, primarily to balance the vagaries of renewable generation.
    • Reliance Industries Ltd has announced plans to set up an Energy Storage Giga factory; state-owned NTPC Ltd has floated a global tender for a grid-scale battery storage project.
    • The Ministry of Heavy Industries issued a request for proposal for setting up manufacturing facilities for Advanced Chemistry Cell (ACC) battery storage in India.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Taiwan: An important ally in the battle against authoritarianism

    Context

    President Joe Biden-led Summit for Democracy was held on December 9-10. The summit was driven by the idea that in the face of populism, authoritarianism it is critical to keep the “democratic” flock together.

    The salience of Summit for Democracy

    • As a goal in itself: The salience of this summit lies in a deeper understanding that democracy is not just a form of government, it is a goal in itself, a value that must be cherished, preserved and celebrated.
    • Democracy as a way of life: Unlike other political systems, democracy is also a way of life — a work in progress that needs sustained attention and careful nurturing to make it more resilient.

    Taiwan as a desired partner of like-minded democracies

    • Taiwan’s New Southbound Policy (NSP) was launched in 2016 to bring Asia closer to Taiwan and vice-versa.
    • The NSP is aimed to be a pivotal tool to engage like-minded democracies in the region.
    • Role in the post-pandemic world: The post-pandemic world would be more invested in some of these areas — for example, health diplomacy and collaboration in the medical sector, climate change mitigation, and developing sustainable and resilient supply chains.
    • Platform for semiconductor industry: Taiwan is already proving its efficacy as a viable platform for the semiconductor industry.
    • Resilient supply chain mechanism: The US and its friends in the region, particularly India, Japan and Australia, have been proactively exploring possibilities of creating resilient supply chain mechanisms.
    • With its technological knowhow, and shared interests and concerns, Taiwan fits perfectly in this agenda.
    • EU’s renewed interest in Indo-Pacific: Greater interactions between Taiwan and EU on the technology cooperation front, stimulated by the latter’s renewed interest in the Indo-Pacific region, makes Taiwan a desired partner of fellow democracies.
    •  As an industrialised democracy, Taiwan could play an important role, especially since countries are trying to reduce dependence on China and establish supply chain resilience.

    Conclusion

    It is important for liberal democracies to acknowledge that they are facing similar challenges and view Taiwan as an indispensable partner. Deft diplomacy is in order since transnational challenges demand joint efforts by liberal democracies.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Foreign Policy Watch: India-Australia

    India-Australia soon to have FTA

    India and Australia are expected to complete negotiations for an interim free trade agreement (FTA) soon, a move aimed at boosting economic ties between the two countries.

    Comprehensive Economic Cooperation Agreement (CECA)

    • The final agreement is officially dubbed as the CECA is expected to be completed by the end of 2022.
    • The pact covers areas such as goods, services, investment, rules of origin, customs facilitation, legal and institutional issues.
    • This new strategic economic agreement is expected to increase bilateral trade in goods to $100 billion within five years.

    What is a Free Trade Agreement (FTA)?

    • A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favorably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

    How many FTAs does India have?

    • India has signed it’s first Free Trade Agreement (FTA) with Sri Lanka in 1998.
    • Likewise, India had FTAs with: Nepal, Bhutan, Thailand, Singapore, ASEAN, Japan and Malaysia.
    • India has signed Preferential Trade Agreements such as:
    1. Asia Pacific Trade Agreement (APTA) with Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka
    2. Global System of Trade Preferences (GSTP)
    3. India – MERCOSUR PTA etc. with South American countries

    Back2Basics: Types of Trade Agreements

    (1) Free Trade Agreement

    (discussed above)

    (2) Preferential Trade Agreement

    • In this type of agreement, two or more partners give preferential right of entry to certain products.
    • This is done by reducing duties on an agreed number of tariff lines.
    • Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
    • Tariff may even be reduced to zero for some products even in a PTA.
    • India signed a PTA with Afghanistan.

    (3) Comprehensive Economic Partnership Agreement

    • Partnership agreement or cooperation agreement are more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
    • It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    (4) Comprehensive Economic Cooperation Agreement

    • CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
    • It is not as comprehensive as CEPA.
    • India has signed CECA with Malaysia.

    (5) Framework Agreement

    • Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
    • It provides for some new area of discussions and set the period for future liberalisation.
    • India has previously signed framework agreements with the ASEAN, Japan etc.

    (6) Early Harvest Scheme

    • An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
    • At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
    • An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Goods and Services Tax (GST)

    States demand extension of GST compensation for another 5 years

    Many states have demanded that the GST compensation cess regime be extended for another five years and the share of the Union government in the centrally-sponsored schemes be raised as the COVID-19 pandemic has impacted their revenues.

     What is GST?

    • GST, being a consumption-based tax, would result in loss of revenue for manufacturing-heavy states.
    • GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
    • It is charged at the time of supply and depends on the destination of consumption.
    • For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).

    Compensation under GST regime: GST Compensation Cess

    • Due to the consumption-based nature of GST, manufacturing states like Gujarat, Haryana, Karnataka, Maharashtra and Tamil Nadu feared a revenue loss.
    • Thus, GST Compensation Cess or GST Cess was introduced by the government to compensate for the possible revenue losses suffered by such manufacturing states.
    • However, under existing rules, this compensation cess will be levied only for the first 5 years of the GST regime – from July 1st, 2017 to July 1st, 2022.
    • Compensation cess is levied on five products considered to be ‘sin’ or luxury as mentioned in the GST (Compensation to States) Act, 2017 and includes items such as- Pan Masala, Tobacco, and Automobiles etc.

    Why is the compensation necessary?

    • States no longer possess taxation rights after most taxes, barring those on petroleum, alcohol, and stamp duty were subsumed under GST.
    • GST accounts for almost 42% of states’ own tax revenues, and tax revenues account for around 60% of states’ total revenues.
    • Finances of over a dozen states are under severe strain, resulting in delays in salary payments and sharp cuts in capital expenditure outlay amid the pandemic-induced lockdowns and the need to spend on healthcare.

    Distributing GST compensation

    • The compensation cess payable to states is calculated based on the methodology specified in the GST (Compensation to States) Act, 2017.
    • The compensation fund so collected is released to the states every 2 months.
    • Any unused money from the compensation fund at the end of the transition period shall be distributed between the states and the centre as per any applicable formula.

    Try this question from CSP 2018:

    Q. Consider the following items:

    1. Cereal grains hulled
    2. Chicken eggs cooked
    3. Fish processed and canned
    4. Newspapers containing advertising material

    Which of the above items is/are exempt under GST (Goods and Services Tax)?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 1, 2, 3 and 4

     

    Post your answers here.

     

    Also read:

    [Burning Issue] GST Compensation

     

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Centre notifies new rules for Consumer Panels

    The Ministry of Consumer Affairs, Food, and Public Distribution has notified monetary jurisdiction for various Consumer Disputes Redressal Commission (CDRC) under the Consumer Protection Act, 2019.

    What are the new changes?

    • The Centre has notified new rules to revise pecuniary jurisdiction for entertaining consumer complaints at district, state and national level commissions, a move aimed at fast disposal of cases.
    • The NCDRC will now have jurisdiction to entertain consumers’ complaints where the value of the goods or services exceeds Rs 2 crore as against the earlier limit of over Rs 10 crore.
    • The state commissions will have jurisdiction to similar complaints with value of goods or services between Rs 50 lakh and Rs 2 crore, and the National Commission over Rs 2 crore.
    • District commissions have jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed Rs 1 crore.

    Legal basis of these changes

    • The Act provides a “three-tier quasi-judicial mechanism” for redress of consumer disputes: district commissions, state commissions, and the national commission.
    • The law also provides pecuniary jurisdiction of each tier of consumer commission.

    Benefits of the move

    • Fast-track disposal of cases: Reduction of limit of pecuniary jurisdiction of district and state commissions will reduce workload at these two tiers of dispute resolution system, and thereby reduce pendency at these two levels.
    • Easy litigation: Besides, with E-Dakhil in place, consumers can take their complaints to a state or national commission without visiting the commission physically.

    Back2Basics: Features of the Consumer Protection Act, 2019

    [1] Definition of consumer

    • A consumer is defined as a person who buys any good or avails a service for a consideration.
    • It does not include a person who obtains a good for resale or a good or service for commercial purpose.
    • It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

    [2] Rights of consumers

    Six consumer rights have been defined in the Bill, including the right to:

    • be protected against marketing of goods and services which are hazardous to life and property
    • be informed of the quality, quantity, potency, purity, standard and price of goods or services
    • be assured of access to a variety of goods or services at competitive prices and
    • seek redressal against unfair or restrictive trade practices

    [3] Central Consumer Protection Authority

    • The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.
    • It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.
    • The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.

    [4] Penalties for misleading advertisement

    • The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.
    • In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.
    • CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year.

     [5] Consumer Disputes Redressal Commission

    • CDRCs will be set up at the district, state, and national levels.
    • A consumer can file a complaint with CDRCs in relation to: (i) unfair or restrictive trade practices; (ii) defective goods or services; (iii) overcharging or deceptive charging; and (iv) the offering of goods or services for sale which may be hazardous to life and safety.
    • Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC.
    • Appeals from the State CDRC will be heard by the National CDRC.
    • Final appeal will lie before the Supreme Court.

    [6] Jurisdiction of CDRCs

    • The District CDRC will entertain complaints where value of goods and services does not exceed Rs one crore.
    • The State CDRC will entertain complaints when the value is more than Rs one crore but does not exceed Rs 10 crore.
    • Complaints with value of goods and services over Rs 10 crore will be entertained by the National CDRC.

    [7] Product liability

    • Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service.
    • To claim compensation, a consumer has to prove any one of the conditions for defect or deficiency, as given in the Bill.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Join the Community

Join us across Social Media platforms.