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

Archives: News

  • Aadhaar Card Issues

    Workers, not tech, should be state’s priority

    Why in the news? 

    The Aadhaar-Based Payment System (ABPS) has attracted significant attention, mainly because of the many difficulties it encounters

    What is Aadhaar-Based Payment System (ABPS)?

    • The Aadhaar-Based Payment System (ABPS) is a unique payment system that utilizes the Aadhaar number as a central key for electronically channelizing government payments

    Aim of ABPS

    • Objective: Provide socio-economically deprived households with work security facilitated by digital technology.
    • Rooted in ideals: Inclusion in the development process, mitigation of inequality and socioeconomic distress.
    • Recognition: Internationally recognized, such as by the United Nations Development Programme, for contributing to a productive, equitable, and connected society.

    Key challenges related to The Aadhaar-Based Payment System (ABPS):

    • Internet Connectivity Issues: Accessibility to stable internet connections in rural areas poses a challenge for implementing the ABPS effectively.
    • Fingerprint Recognition Problems: The ABPS relies on fingerprint recognition for authentication, but issues with fingerprint recognition can hinder the smooth functioning of the system.
    • Difficulties Faced by the Disabled: The system may not be accommodating to individuals with disabilities, leading to exclusion or difficulties in accessing benefits.
    • Unrecorded Working Days: There are instances where the system fails to record the days of work performed by individuals, leading to discrepancies in payment.
    • Name Duplication: Duplicate entries in the system can lead to confusion and errors in identifying beneficiaries and processing payments.
    • Lack of Awareness: Insufficient awareness among beneficiaries about the ABPS and its processes can result in underutilization or misuse of the system.
    • Errors in Linking and Authentication: Issues may arise during the linking of Aadhaar details with the payment system, leading to authentication errors and payment delays.

    Potential of (ABPS) technology 

    • Progressive Principles: Technology has the potential to serve progressive principles globally and historically, contributing to the advancement of societies.
    • Alignment with Sustainable Development Goals (SDGs): Technological interventions can play a crucial role in achieving the SDGs, with rural employment guarantee schemes in India serving as effective pathways towards several SDGs, both directly and indirectly.
    • Effective Utilization of Budgetary Allocation: The substantial budgetary allocation to schemes like MGNREGS should be channeled through a technologically sound system to ensure efficient utilization of funds.

    Conclusion

    The Aadhaar-Based Payment System faces numerous challenges, highlighting the need for prioritizing workers over technology. While technology holds potential, its alignment with socio-economic goals must ensure inclusivity, efficiency, and effective utilization of resources.

    Practice Question for mains 

    Examine the objectives, challenges, and potential of the Aadhaar-Based Payment System (ABPS) in India. (150 words )

  • Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

    Tamil Nadu accounts for 30% of India’s electronics exports

    Why in the news? 

    Nearly 40% of India’s smartphone shipments over the past two fiscal years originated from a single district Kancheepuram.

    Context 

    • In FY23, Tamil Nadu emerged as India’s foremost exporter of electronic goods, contributing 30% to the country’s total electronic goods exports in FY24.
    • Historically, the state lagged behind Uttar Pradesh and Karnataka in this sector until FY22.
    • However, in recent years, Tamil Nadu has experienced consistent growth in electronic goods exports, unlike other states where figures have either declined or remained static.

     Chart 1 shows the electronic goods exported from Tamil Nadu in $ billion, year-wise.

    • Between April 2023 and January 2024, Tamil Nadu exported electronic goods valued at over $7.4 billion.

    Chart 2 shows the exports of electronic goods of the top five States in India in $ billion, year-wise

    • In FY24, Tamil Nadu’s exports exceeded the combined exports of Uttar Pradesh and Karnataka, which totaled $6.7 billion during that period.
    • Uttar Pradesh and Karnataka were ranked second and third, respectively, in terms of electronic goods exports.
    • Gujarat and Maharashtra, also among the top five exporting states, have experienced stagnant growth in recent years.

    Chart 3 shows the commodity wise share in total exports from India for FY24 (till February) in $ billion

    • Engineering goods were the dominant category of exports from India during the specified period, with a total value of $98 billion.
    • Petroleum products followed closely behind, with exports valued at $78 billion.
    • Gems and jewellery constituted another significant export category, with a total export value of $30 billion.
    • Electronics goods were also notable, although they ranked lower compared to other categories, with exports totaling $25 billion. In FY18, electronics goods were not among the top 10 most exported commodities from India.

     Biggest markets

    • Top most importor of India’s Electronic goods: The United States and the United Arab Emirates (UAE) are the largest markets for India’s electronic goods export. In FY24 (up to February), the U.S. accounted for approximately 35% of India’s electronic goods exports, amounting to $8.7 billion, while the UAE accounted for 12% with $3 billion.
    • Other countries share:The Netherlands and the United Kingdom (U.K.) each held a share of about 5% in India’s electronic goods exports.
    • The primary destination : Since FY21, the United States has consistently been the primary destination for India’s electronics exports, with its share increasing significantly in recent years.

    Conclusion

    Tamil Nadu’s emergence as a key electronics exporter, with 30% of India’s exports, is highlighted. Kancheepuram district’s significant role, alongside Tamil Nadu’s surpassing of Uttar Pradesh and Karnataka, underscores its growth in electronic goods exports.

     

    Mains PYQ

    Can the strategy of regional-resource based manufacturing help in promoting employment in India? (UPSC IAS/2019) 

    Q Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.(UPSC IAS/2017)

  • Corruption Challenges – Lokpal, POCA, etc

    The legal issues surrounding Arvind Kejriwal’s arrest | Explained

    Why in the news? 

    A Delhi Court on Thursday extended the Enforcement Directorate’s (ED) custody of Delhi Chief Minister Arvind Kejriwal till April 1 in the money laundering case

    Context

    Mr Kejriwal was arrested on March 21, hours after his plea for interim protection from arrest was rejected by the Delhi High Court. This is the first instance of a Chief Minister in India being put behind bars while still in office.

    ED’s allegations against the Chief Minister

    • Influence on Elections: The ED contends that Money  received by AAP leaders from operators of alcohol businesses were used to influence the 2022 Assembly elections in Punjab and Goa.
    • Favours to South Group: The excise policy was allegedly drafted with the intention of granting favors to the South Group

     Legal issues  

    • Potential Involvement of AAP: If Kejriwal’s vicarious liability (This principle holds a person responsible for the actions of others, based on the concept of agency) is established, AAP could be impleaded as an accused in the case. This could lead to the attachment or confiscation of the party’s assets under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
    • Application of Section 70 of the PMLA: This section is often invoked to investigate companies involved in money laundering offenses. It holds individuals responsible if they were in charge or responsible for the company at the time of the offense. However, individuals may not be prosecuted if they can prove lack of knowledge or due diligence to prevent the offense.
    • Definition of “Company”: Explanation 1 of Section 70 of the PMLA defines “company” broadly to include any body corporate, firm, or association of individuals. This could potentially encompass a political party under the definition, as per the Representation of the People Act, 1951.

    What is (PML) Prevention of Money-Laundering Act, 2002 Act? 

    An Act to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.

     Reliance on approver’s testimony

    • Definition of an Approver testimony: An approver is someone who has been charged with a crime but later confesses and agrees to testify for the prosecution.
    • Potential Consequences of False Deposition: An approver who provides false testimony can be retried for the offense for which the pardon was granted, according to Section 308 of the CrPC. This provision acts as a deterrent against perjury by the approver.
    • Caution in Reliance: Courts exercise caution when relying on the testimony of an approver due to its inherently suspect nature. The testimony of an accomplice is considered tainted, and courts are wary of potential biases or falsehoods.
    • Corroboration Requirement: To ensure the reliability of the approver’s testimony, corroboration from independent evidence is typically required.
    • Judicial Precedents: The Supreme Court, in cases like Mrinal Das and Ors. v. State of Tripura (2011), has emphasized the importance of corroborative evidence in convicting the accused based on the testimony of an approver.
    • Judicial Scrutiny: Courts meticulously scrutinize the testimony of an approver and assess its credibility in light of corroborative evidence and other factors.

    Conclusion 

    Arvind Kejriwal’s arrest in a money laundering case raises legal complexities, including potential involvement of AAP, application of PMLA, and reliance on approver’s testimony, necessitating cautious judicial scrutiny.

    Mains PYQ 

    Q Money laundering poses a serious security threat to a country’s economic sovereignty. What is its significance for India and what steps are required to be taken to control this menace? (UPSC IAS/2013) 

  • Foreign Policy Watch: India-Sri Lanka

    Katchatheevu Island Conundrum

    Why in the news?

    Prime Minister recently claimed that the then PM Indira Gandhi had given away the island of Katchatheevu to Sri Lanka for no reason.

    About Katchatheevu Island

    • Katchatheevu is a small, uninhabited island measuring merely 285 acres, lying between India and Sri Lanka.
    • It is situated in the Palk Strait.
    • It was originally owned by the king of Ramnad (present-day Ramanathapuram, Tamil Nadu).
    • The island is used by fishermen to dry their nets.
    • Despite its modest size, the island holds significant religious significance, housing Anthony’s church, a centuries-old Catholic shrine revered by devotees from both nations.
    • Beyond its religious connotations, Katchatheevu is a vital ecosystem, supporting diverse flora and fauna endemic to the region’s maritime environment.

    A Quick Recap of its History

    • During the British rule, it was administered jointly by India and Sri Lanka.
    • In the early 20th century, Sri Lanka claimed territorial ownership over the islet.
    • India ceded the island to Sri Lanka, through a joint agreement in 1974; India further gave up its fishing rights in the region in 1976.

    Present Issue

    • In 1974 and 1976 treaties were signed between the two countries to demarcate the International Maritime Boundary Line (IMBL).
    • However, the agreement could not stop the fishermen from fishing in these waters, as fishermen know no boundary.

    Culmination of the Political Dispute

    • Unresolved Issue: While Indian fishermen retained certain access rights to the island, the agreements failed to address key concerns regarding fishing rights, leading to simmering discontent among fishing communities.
    • Sri Lankan Atrocities: The civil war in Sri Lanka overshadowed the Katchatheevu issue, with Indian fishermen facing arrests and allegations of mistreatment by the Sri Lankan navy.
    • Renewed Demands: Instances of fishermen’s rights violations reignited calls for the retrieval of Katchatheevu by Tamil Nadu politicians, who highlighted the plight of affected fishing communities.
    • Present Backlash: The agreement sparked widespread protests and political backlash in Tamil Nadu, with regional parties and activists condemning the perceived abandonment of Indian sovereignty over Katchatheevu.

    PYQ:

    Consider the following statements:

    1.    The value of Indo-Sri Lanka trade has consistently increased in the last decade.

    2.    “Textile and textile articles” constitute an important item of trade between India and Bangladesh.

    3.    In the last five years, Nepal has been the largest trading partner of India in South Asia.

    Which of the statements given above is/are correct? (2020)

    (a) 1 and 2 only

    (b) 2 only

    (c) 2 only

    (d) 3 only

     

    Practice MCQ:

    With reference to the Katchatheevu Island recently seen in news, consider the following statements:

    1.    During the British rule, it was administered by India.

    2.    India ceded the island to Sri Lanka, through a joint agreement in 1974 but holds fishing rights in the region.

    Which of the given statements is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Modern Indian History-Events and Personalities

    100 Years of Vaikom Satyagraha

    Why in the news?

    This year April 1st marks 100 years of the Vaikom Satyagraha, in Kottayam, Kerala.

    About Vaikom Satyagraha

    • Vaikom was the epicentre of the Vaikom Satyagraha, which began in 1924.
    • This movement aimed to challenge the ban imposed on marginalized communities from entering the vicinity of the Vaikom Mahadevar Temple in the princely state of Travancore.
    • It sparked similar temple entry movements across India, advocating for the rights of untouchables and backward castes.
    • It introduced nonviolent public protest as a method of resistance in Kerala.

    A Precursor to the Vaikom Satyagraha

    1. Social and Political Developments
    • Backdrop of Social Injustice: Travancore, characterized by feudal and caste-based governance, imposed stringent restrictions on lower castes, denying them entry to temples and public spaces.
    • Emergence of Social Consciousness: By the late 19th century, progressive reforms and missionary activities led to increased awareness and education among lower castes, particularly the Ezhavas.
    • Rise of Educated Elite: Educated individuals from diverse backgrounds, including lower castes, began to challenge social norms and demand equality in opportunities and rights.
    1. Beginning of Agitation
    • Advocacy for Change: Ezhava leader T K Madhavan spearheaded efforts to challenge temple entry restrictions, advocating for direct action to confront discriminatory practices.
    • Influence of Gandhi’s Ideals: Inspired by Gandhi’s principles of non-cooperation, Madhavan sought support from the Indian National Congress (INC) to mobilize a mass movement against untouchability.

    Actual Course of Events

    1. Agitation
    • Leaders such as T.K. Madhavan, K.P. Kesava Menon, and George Joseph spearheaded the agitation.
    • Despite facing resistance and arrests by the police, the Satyagrahis persisted in their protest for over a year, resulting in numerous arrests and jails.
    • Notable figures like Mahatma Gandhi, Chattampi Swamikal, and Sree Narayana Guru extended their support to the movement, which gained nationwide recognition.
    • The involvement of women and support from various regions, including Punjab, highlighted the widespread impact of the Satyagraha.
    1. Suspension:
    • Initially suspended in April 1924 at Gandhi’s suggestion, the movement resumed when attempts to resolve the issue with caste Hindu leaders failed.
    • The absence of leaders like T.K. Madhavan and K.P. Kesava Menon, who were arrested, posed challenges to the movement.
    • V. Ramaswamy Naicker (Periyar) lent support from Tamil Nadu before also being arrested.
    • The resolution for the right to temple entry faced resistance in the Assembly, thwarted by traditionalist support and government pressure.
    1. Aftermath
    • On October 1, 1924, a procession of Savarnas (forward castes) submitted a petition to the Regent Maharani Sethu Lakshmi Bai of Travancore, signed by around 25,000 individuals, urging for the temple’s open entry.
    • Gandhi’s meeting with the Regent Maharani and the procession led by Mannath Padmanabhan Nair underscored the growing support for the cause.
    • Eventually, on November 23, 1925, all temple gates were opened to Hindus except the eastern gate, marking a significant victory.
    • The Vaikom Satyagraha laid the groundwork for the temple entry proclamation of Kerala in 1936 and inspired similar movements’ nationwide, promoting social justice and equality.

    PYQ:

    Satya Shodhak Samaj organized (2016):

    (a) a movement for upliftment of tribals in Bihar’

    (b) a temple-entry movement in Gujarat

    (c) an anti-caste movement in Maharashtra

    (d) a peasant movement in Punjab

     

    Practice MCQ:

    The Vaikom Satyagraha of 1924 was essentially a:

    (a) Temple Entry Movement

    (b) Peasants’ Uprising

    (c) Salt Satyagraha

    (d) Swadeshi Movement

  • GI(Geographical Indicator) Tags

    Recently Awarded GI Tags

    Why in the news?

    What is a GI Tag?

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years and can be renewed.

    Various GI Tags Awarded:

    Details
    Bihu Dhol (Assam) Traditional drum used during Bihu festivals
    Jaapi (Assam) Bamboo headgear worn in rural Assam
    Sarthebari metal craft (Assam) Traditional metal craft producing utensils and artifacts
    Mishing handloom products (Assam) Handwoven textiles including shawls and sarees
    Asharikandi terracotta craft (Assam) Terracotta pottery and decorative items
    Pani Meteka craft (Assam) Brass and copper utensils adorned with intricate designs
    Bodo Dokhona (Assam) Traditional attire of Bodo women
    Bodo Eri silk (Assam) Silk fabric produced from eri silkworms, known for its soft texture and eco-friendly production
    Bodo Jwmgra (Assam) Traditional scarf worn by Bodo community members
    Bodo Gamsa (Assam) Traditional dress of Bodo men
    Bodo Thorkha (Assam) Traditional musical instrument made from bamboo or wood
    Bodo Sifung (Assam) Long flute used in traditional Bodo music
    Banaras Thandai (Uttar Pradesh) Traditional drink made from milk, nuts, seeds, and spices
    Banaras Tabla (Uttar Pradesh) Pair of drums used in classical Indian music
    Banaras Shehnai (Uttar Pradesh) Traditional wind instrument used in Indian classical music
    Banaras Lal Bharwamirch (Uttar Pradesh) Red chili grown in the Banaras region
    Banaras Lal Peda (Uttar Pradesh) Popular Indian sweet made from condensed milk and sugar
    Pachra-Rignai (Tripura) Traditional dress worn by women, consisting of a wrap-around skirt and blouse
    Matabari Peda (Tripura) Sweet delicacy made from condensed milk, sugar, and ghee
    Garo Textile weaving (Meghalaya) Traditional weaving craft practiced by the Garo tribe
    Lyrnai Pottery (Meghalaya) Traditional pottery making characterized by unique designs and techniques
    Chubitchi (Meghalaya) Traditional dish made with meat, local herbs, and spices

     

    PYQ:

    Which of the following has/have been accorded ‘Geographical Indication’ status? (2015)

    1.    Banaras Brocades and Sarees

    2.    Rajasthani Daal-Bati-Churma

    3.    Tirupathi Laddu

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 only 3 only

    (d) 1, 2 and 3

     

    India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to (2016):

    (a) ILO

    (b) IMF

    (c) UNCTAD

    (d) WTO

     

    Practice MCQ:

    Consider the following statements about the Geographical Indications (GI) Tag:

    1.    The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry is the nodal agency for GI.

    2.    A GI tag stands valid for 10 years and cannot be renewed.

    Which of the given statements is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

  • Artificial Intelligence (AI) Breakthrough

    Empathic Voice Interface (EVI): World’s first conversational AI with Emotional Intelligence  

    Why in the news?

    • Hume, a prominent research lab and tech firm based in New York, has unveiled Empathic Voice Interface (EVI), world’s first conversational AI endowed with emotional intelligence.

    What is Empathic Voice Interface (EVI)?

    • Hume’s Empathic Voice Interface (EVI) is powered by its proprietary empathic large language model (eLLM).
    • It can decipher tones, word emphasis, and emotional cues, improving the quality of interactions.
    • As an API, EVI can integrate seamlessly with various applications, offering developers a versatile solution for implementing human-like interactions.

    Potential Applications and Future Prospects

    • Enhanced AI Assistants: Hume’s technology enables AI assistants to engage in nuanced conversations, enhancing productivity and user satisfaction.
    • Improved Customer Support: By infusing empathy into customer support interactions, Hume’s AI promises to deliver more personalized service and foster stronger relationships.
    • Therapeutic Potential: Hume’s empathetic AI holds promise in therapeutic settings, offering support and guidance by understanding and responding to human emotions.

    PYQ:

    1. What is ’emotional intelligence’ and how can it be developed in people? How does it help an individual in taking ethical decisions?  (2013)
    2. “Emotional Intelligence is the ability to make your emotions work for you instead of against you.” Do you agree with this view? Discuss. (2019)
    3. How will you apply emotional intelligence in administrative practices?  (2017)

     

    Practice MCQ:

    Which of the following statements correctly describes the Empathic Voice Interface (EVI)?

    (a) EVI operates as a standalone application, devoid of integration capabilities with other software systems.

    (b) It relies on conventional language models, neglecting emotional cues and word emphasis during interactions.

    (c) EVI, powered by its proprietary empathic large language model (eLLM), detects emotional nuances such as tones, word emphasis, and cues, enhancing interaction quality.

    (d) EVI is developed by the Microsoft.

  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Hepatitis B: Everything you need to know

    Why in the news?

    • A recent study by Sir Ganga Ram Hospital, New Delhi, revealed alarming deficiencies in public knowledge (transmission, effects & vaccination) about Hepatitis B in India.
    • Despite the availability of a vaccine for over 30 years, HBV infection rates remain high in India, with prevalence estimates ranging from 2% to 8% and approximately 37 million carriers nationwide.

    About Hepatitis

    • Hepatitis is a medical condition characterized by inflammation of the liver.
    • It can be caused by various factors, including viral infections (hepatitis viruses), alcohol consumption, certain medications, toxins, autoimmune diseases, and metabolic disorders.
    Hepatitis A Hepatitis B Hepatitis C
    Causative Virus Hepatitis A Virus (HAV) Hepatitis B Virus (HBV) Hepatitis C Virus (HCV)
    Transmission Fecal-oral route (contaminated food/water) Blood and body fluids (unsafe sex, sharing needles) Blood-to-blood contact (sharing needles, transfusions)
    Vaccine Available Yes Yes Yes
    Chronic Infection No (usually acute) Yes (can become chronic) Yes (often becomes chronic)
    Symptoms Mild flu-like symptoms, jaundice Variable, from none to severe symptoms Often asymptomatic, but can lead to liver damage
    Chronic Complications None Cirrhosis, liver cancer Cirrhosis, liver cancer
    Preventable by Vaccine Yes Yes No
    Treatment Supportive care Antiviral medications Antiviral medications

     

    PYQ:

     

    Which one of the following statements is not correct? (2019)

    (a) Hepatitis B virus is transmitted much like HIV.

    (b) Hepatitis B, unlike Hepatitis C, does not have a vaccine.

    (c) Globally, the number of people infected with Hepatitis B and C viruses are several times more than those infected with HIV.

    (d) Some of those infected with Hepatitis B and C viruses do not show the symptoms for many years.

     

    Which of the following diseases can be transmitted from one person to another through tattooing? (2013)

    1.    Chikungunya

    2.    Hepatitis B

    3.    HIV-AIDS

    Select the correct answer using the codes given below.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    Practice MCQ:

     

    Consider the following statements regarding Hepatitis C virus:

    1.    It is spread mainly through contaminated water and food.

    2.    It primarily affects the functioning of respiratory system.

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • NGOs vs. GoI: The Conflicts and Scrutinies

    MHA extends FCRA Registration of NGOs

    Why in the news?

    The Ministry of Home Affairs extended till June 30 the validity of all FCRA registered NGOs whose licences are expiring on March 31.

    What is Foreign Contribution Regulation Act (FCRA)?

    • The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
    • First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
    • The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations.
    • It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for 5 years and it can be renewed subsequently if they comply with all norms.

    What contributes to Foreign Donations?

    • Foreign Contribution’ means the donation, delivery or transfer made by any foreign source of any:
    1. Article (whose market value is not more than one lakh rupees);
    2. Currency (whether Indian or foreign);
    3. Securities
    • Foreign donations may be those from Governments, international agencies, foreign companies, trusts, corporations, foreign citizens
    • However, some agencies like the UN, World Bank, IMF etc. are EXEMPTED from the definition of foreign donors.

    Who cannot accept donations under FCRA?

    According to the FCRA, foreign donations cannot be accepted by:

    1. Election candidates
    2. Editors and publishers of newspapers
    3. Judges and government employees.
    4. Political parties and members of legislature etc.

    What was the recent Amendment?

    The FCRA was amended in September 2020 to introduce some new restrictions:

    • There is now a capping of the administrative expenses of NGOs at 20% of their foreign donations.
    • The new amendment requires them to have a State Bank of India account at a Delhi Branch.
    • It also prohibits the transfer of grants received under FCRA to any other outfit.
    • It also gives sweeping powers to the Ministry of Home Affairs to cancel the FCRA certificate of an NGO.
    • It made legal for political parties to accept foreign aid through Indian subsidiaries.
    • Under the Act, the government may suspend the registration of a person for a period not exceeding 180 days.
    • Providing Aadhar is mandatory for all office bearers, directors or key functionaries of the organization.

     

    PYQ:

    2015: Examine critically the recent changes in the rule governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976.

     

    2015: How can be the role of NGOs be strengthened in India for development works relating to protection of the Environment? Discuss throwing light on the major constraints.

     

    Practice MCQ:

    Consider the following statements regarding “Foreign Contribution (regulation) Act”:

    1.    World Bank is excluded from the definition of foreign sources under the act.

    2.    Political parties are prohibited from taking foreign donations under the act.

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Corruption Challenges – Lokpal, POCA, etc

    Section 120B of the Indian Penal Code (IPC)

    Why in the news?

    • The Supreme Court has rejected review petitions challenging its ruling on the initiation of proceedings under the Prevention of Money Laundering Act (PMLA).
    • The judgment clarified that Section 120B of the Indian Penal Code cannot be invoked for PMLA proceedings unless the alleged conspiracy pertains to a scheduled offence.

    Prevention of Money Laundering Act (PMLA), 2002

     

    • The PMLA was enacted in 2002 with the aim of preventing money laundering and providing for confiscation of property derived from money laundering.
    • It applies to all financial institutions, banks (including the RBI), mutual funds, insurance companies, and their financial intermediaries.
    • The Act empowers government authorities to confiscate property and/or assets earned from illegal sources and through money laundering.
    • It has been amended three times, in 2005, 2009, and 2012.
    • Under the PMLA, the burden of proof lies with the accused, who must demonstrate that the suspect property/assets have not been obtained through proceeds of crime.

     

    Penalties under PMLA:

    • Freezing or Seizure of property and records, and/or attachment of property obtained through crime proceeds.
    • Rigorous imprisonment for a minimum of 3 years and a maximum of 7 years. In cases where money laundering is linked with the Narcotic Drugs and Psychotropic Substances Act, 1985, the punishment can extend up to 10 years, along with a fine.
    • Fine imposition.

     

    Authorities for investigation under PMLA:

    1. Enforcement Directorate (ED): It is responsible for investigating offenses under the PMLA.
    2. Financial Intelligence Unit – India (FIU-IND): It is the national agency tasked with receiving, processing, analyzing, and disseminating information related to suspect financial transactions.

    What is Article 120 of Indian Penal Code (IPC)?

    • Section 120 of the Indian Penal Code (IPC) deals with the concept of “Conspiracy to commit an offense”.
    • It states that when two or more persons agree to do, or cause to be done, an illegal act, or an act which is not illegal by illegal means, such an agreement is designated a criminal conspiracy.
    • Section 120A defines “criminal conspiracy” as when two or more persons agree to do, or cause to be done, an illegal act or an act which is not illegal by illegal means.
    • Section 120B prescribes the punishment for criminal conspiracy, with death, imprisonment for life, or rigorous imprisonment for a term of two years or upwards, shall be punished in the same manner as if he had abetted such offense.

    Punishment for Criminal Conspiracy

    • Nature of Conspiracy: IPC 120B categorizes conspiracy based on the gravity of the offense and prescribes punishments accordingly.
    • Serious Offenses: Conspiracy to commit serious crimes punishable by death, life imprisonment, or rigorous imprisonment for 2 years or more warrants severe punishment equivalent to the offense committed.
    • Other Offenses: Conspiracy for illegal acts not falling under the serious category incurs imprisonment for up to six months, a fine, or both, as per Section 120B.

    Practice MCQ:

    Which of the following statements are correct regarding ‘Prevention of Money Laundering Act 2002 (PMLA)’?

    1. Enforcement Directorate (ED) is responsible for investigating offences under the PMLA

    2. The Act enables government authorities to confiscate property earned through money laundering.

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

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