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

Civilsdaily

Login

Archives: News

  • Real Estate Industry

    RERA

    Bills/Act/Laws | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    The Supreme Court has asked the Chief Secretaries of the States to respond to queries raised by the Centre on the implementation of rules framed under the Real Estate (Regulation and Development) (RERA) Act, 2016 in their respective jurisdictions.

    What is RERA, 2016?

    • The Real Estate (Regulation and Development) Act, 2016 seeks to protect home-buyers as well as help boost investments in the real estate industry.
    • It establishes a Real Estate Regulatory Authority- RERA in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.
    • It was enacted under Entry 6 and 7 (dealing with contracts and the transfer of property) of the Concurrent List.
    • It is followed by the principle “buyer is the king and builders will have to ensure compliances to avoid punishment”.
    • Its main objective is to reduce delay in the work or timely delivery of the project without compromising the quality.

    Objectives of this Act

    It has the following objectives:

    • To protect the interest of the allottees and ensure their responsibility
    • To maintain transparency and reduce the chances of fraud
    • To implement Pan-India standardization and bring about professionalism
    • To enhance the flow of correct information between the home buyers and the sellers
    • To impose greater responsibilities on both the builders and the investors
    • To enhance the reliability of the sector and thereby increase confidence amongst the investors

    Key Provisions of RERA Act

    • Compulsory registration: According to the central act, every real estate project (where the total area to be developed exceeds 500 sq mtrs or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA.
    • Establishment of state level regulatory authorities: It provides for State governments to establish more than one regulatory authority such as RERA to:
    1. Register and maintain a database of real estate projects; publish it on its website for public viewing
    2. Protection of interest of promoters, buyers and real estate agents
    3. Development of sustainable and affordable housing
    4. Render advice to the government and ensuring compliance with its Regulations and the Act
    • Establishment of Real Estate Appellate Tribunal: Decisions of RERAs can be appealed in these tribunals.
    • Mandatory Registration: All projects with plot size of a minimum 500 sq.mt or eight apartments need to be registered with Regulatory Authorities.
    • Deposits: Developers needs to keep 70% of the money collected from a buyer in a temporary pass through account held by a third party (escrow account) to meet the construction cost of the project.
    • Liability of the developer: A developer’s liability to repair structural defects would be for 5 years.
    • Cap on Advance Payments: A promoter cannot accept more than 10% of the cost of the plot, apartment or building as an advance payment or an application fee from a person without first entering into an agreement for sale
    • Carpet Area over super built-up: Clearly defines Carpet Area as net usable floor area of flat. Buyers will be charged for the carpet area and not super built-up area.
    • Punishment for non-compliance: Imprisonment of up to three years for developers and up to one year in case of agents and buyers for violation of orders of Appellate Tribunals and Regulatory Authorities.

    Which projects can get RERA approval?

    • Commercial and residential projects including plotted development.
    • Projects measuring more than 500 sq mts or 8 units.
    • Projects without Completion Certificate, before the commencement of the Act.
    • The project is only for the purpose of renovation/repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA.
    • Each phase is to be treated as standalone real estate project requiring fresh registration.

    Benefits offered by the RERA Act

    Industry

    Developer

    Buyer

    Agents
    • Governance and transparency
    • Project efficiency and robust project delivery
    • Standardization and quality
    • Enhance the confidence of investors
    • Attract higher investments and PE funding
    • Regulated Environment
    • Common and best practices
    • Increase efficiency
    • Consolidation of sector
    • Corporate branding
    • Higher investment
    • Increase in organized funding
    • Significant buyers protection
    • Quality products and timely delivery
    • Balanced agreements and treatment
    • Transparency – sale based on carpet area
    • Safety of money and transparency on utilization
    • Consolidation of the sector (due to mandatory state registration)
    • Increased transparency
    • Increased efficiency
    • Minimum litigation by adopting best practices

     

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • WTO and India

    The Process of Cartelisation

    | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    This newscard is an excerpt from the original article published in TH.

    What is a Cartel?

    • According to CCI, a “Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services”.
    • The three common components of a cartel are:
    1. an agreement
    2. between competitors
    3. to restrict competition

    What is Cartelization?

    • Cartelization is when enterprises collude to fix prices, indulge in bid-rigging, or share customers, etc. But when prices are controlled by the government under law, that is not cartelization.
    • The Competition Act contains strong provisions against cartels.
    • It also has the leniency provision to incentivize a party to a cartel to break away and report to the Commission, and thereby expect total or partial leniency.
    • This has proved a highly effective tool against cartels worldwide.

    Philosophy behind

    • Cartels, which involve a group of businesses colluding to keep prices high, have been viewed by economists as a significant threat to the market economy.
    • When businesses cooperate with each other rather than compete against each other, there could be many adverse consequences to consumers.
    • For one, consumers will have to pay higher prices for goods and services.
    • It should be noted that the way cartels keep prices high is by limiting the supply of their output. Further, in the absence of any threat from competition, cartels also have very little reason to innovate or cater to consumers in better ways.
    • In other words, they essentially act like a monopoly.
    • The Organization of the Petroleum Exporting Countries (OPEC) is the most well-known international cartel that influences the price of oil globally through coordinated efforts to limit supply.

    How do they work?

    • Four categories of conduct are commonly identified across jurisdictions (countries). These are: price-fixing, output restrictions, market allocation and, bid-rigging
    • In sum, participants in hard-core cartels agree to insulate themselves from the rigors of a competitive marketplace, substituting cooperation for competition.

    How do cartels hurt?

    • They not only directly hurt the consumers but also, indirectly, undermine overall economic efficiency and innovations.
    • A successful cartel raises the price above the competitive level and reduces output.
    • Consumers choose either not to pay the higher price for some or all of the cartelized product that they desire, thus forgoing the product, or they pay the cartel price and thereby unknowingly transfer wealth to the cartel operators.

    Are there provisions in the Competition Act against monopolistic prices?

    • There are provisions in the Competition Act against abuse of dominance.
    • One of the abuses is when a dominant enterprise “directly or indirectly imposes unfair or discriminatory prices” in the purchase or sale of goods or services.
    • Thus, excessive pricing by a dominant enterprise could, in certain conditions, be regarded as abuse and, therefore, subject to investigation by the Competition Commission if it were fully functional.
    • However, where pricing is a result of normal supply and demand, the Competition Commission may have no role.

    What is the penalty for cartelization?

    • The Competition Act calls for a penalty on each member of the cartel, which is up to three times its profit for each year of anti-competitive behavior, or 10% of turnover for each year of its continuance, whichever is higher.
    • However, in case of a leniency petition, CCI can waive the penalty depending on the timing and usefulness of the disclosure  and  full cooperation  in  the  probe.

    How might cartels be worse than monopolies?

    • Monopolies are bad for both individual consumer interests as well as society at large.
    • Monopolist completely dominates the concerned market and, more often than not, abuse this dominance either in the form of charging higher than warranted prices or by providing lower than the warranted quality of the good or service in question.

    How to stop the spread of cartelization?

    • Strong deterrence to those cartels that are found guilty of being one.
    • Typically this takes the form of a monetary penalty that exceeds the gains amassed by the cartel and it is not always easy to ascertain the exact gains from cartelization.
    • The threat of stringent penalties can be used in conjunction with providing leniency — as was done in the beer case.

    Back2Basics: Competition Commission of India (CCI)

    • The CCI is the chief national competition regulator in India.
    • It is a statutory body within the Ministry of Corporate Affairs.
    • It is responsible for enforcing The Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India.

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Foreign Policy Watch: United Nations

    What is the UK-Rwanda Asylum Plan?

    IOCR | International Relations | Mains Paper 2: Important International Institutions

    The United Kingdom has signed a deal with Rwanda to send some asylum seekers to the East African nation — a move that PM Boris Johnson said will “save countless lives” from human trafficking.

    Immigrants crisis in UK

    • Since 2018, there has been a marked rise in the number of refugees and asylum seekers that undertake dangerous crossings between Calais in France and Dover in England.
    • Most such migrants and asylum seekers hail from war-torn countries like Sudan, Afghanistan, and Yemen, or developing countries like Iran and Iraq.
    • The Britain that has adopted a hardline stance on illegal immigration, these crossings constitute an immigration crisis.
    • The Nationality and Borders Bill, 2021, which is still under consideration in the UK, allows the British government to strip anyone’s citizenship without notice under “exceptional circumstances”.
    • The Rwanda deal is the operationalization of one objective in the Bill which is to deter illegal entry into the United Kingdom.

    What is the Rwanda Deal?

    • The UK and Rwanda Migration and Economic Development Partnership or the Rwanda Deal is a Memorandum of Understanding (MoU) signed between the two governments.
    • Under this deal, Rwanda will commit to taking in asylum seekers who arrive in the UK on or after January 1, 2022, using illegally facilitated and unlawful cross border migration.
    • Rwanda will function as the holding centre where asylum applicants will wait while the Rwandan government makes decisions about their asylum and resettlement petitions in Rwanda.
    • Rwanda will, on its part, accommodate anyone who is not a minor and does not have a criminal record.

    Rationale of the deal

    • The deal aims to combat “people smugglers”, who often charge exorbitant prices from vulnerable migrants to put them on unseaworthy boats from France to England that often lead to mass drownings.
    • The UK contends that this solution to the migrant issue is humane and meant to target the gangs that run these illegal crossings.

    What will the scheme cost the UK?

    • The UK will pay Rwanda £120 million as part of an “economic transformation and integration fund” and will also bear the operational costs along with an, as yet undetermined, amount for each migrant.
    • Currently, the UK pays £4.7 million per day to accommodate approximately 25,000 asylum seekers.
    • At the end of 2021, this amounted to £430 million annually with a projected increase of £100 million in 2022.
    • The Rwanda Deal is predicted to reduce these costs by outsourcing the hosting of such migrants to a third country.

    Will the Rwanda Deal solve the problem of illegal immigration?

    • This deal will be implemented in a matter of weeks unless it is challenged and stayed by British courts.
    • While Boris Johnson’s government is undoubtedly bracing for such legal challenges, it remains unclear if the Rwanda Deal will solve the problem of unlawful crossings.
    • Evidence from similar experiences indicates that such policies do not fully combat “people smuggling”.

    Criticisms of the deal

    • Several activists, refugee and human rights organizations have strongly opposed the new scheme.
    • There are dangers of transferring refugees and asylum seekers to third countries without sufficient safeguards.
    • The refugees are traded like commodities and transferred abroad for processing.
    • Such arrangements simply shift asylum responsibilities, evade international obligations, and are contrary to the letter and spirit of the Refugee Convention.
    • Rwanda also has a known track record of extrajudicial killings, suspicious deaths in custody, unlawful or arbitrary detention, torture, and abusive prosecutions, particularly targeting critics and dissidents.

    Do any other countries send asylum seekers overseas?

    • Yes, several other countries — including Australia, Israel and Denmark — have been sending asylum seekers overseas.
    • Australia has been making full use of offshore detention centres since 2001.
    • Israel, too, chose to deal with a growing influx of asylum seekers and illegal immigrants from places like Sudan and Eritrea by striking deals with third countries.
    • Those rejected for asylum were given the choice of returning to their home country or accepting $3,500 and a plane ticket to one of the third countries.
    • They faced the threat of arrest if they chose to remain in Israel.

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • AYUSH – Indian Medicine System

    WHO & Traditional Medicine

    | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    PM Modi, along with World Health Organization (WHO) Director-General Dr Tedros Ghebreyesus, will perform the groundbreaking ceremony for the first-of-its-kind WHO Global Centre for Traditional Medicine (GCTM) in Jamnagar, Gujarat.

    What is Traditional Medicine?

    • The WHO describes traditional medicine as the total sum of the “knowledge, skills and practices indigenous and different cultures have used over time to maintain health and prevent, diagnose and treat physical and mental illness”.
    • Its reach encompasses ancient practices such as acupuncture, ayurvedic medicine and herbal mixtures as well as modern medicines.
    • According to WHO estimates, 80% of the world’s population uses traditional medicine.

    Traditional medicine in India

    • It is often defined as including practices and therapies — such as Yoga, Ayurveda, Siddha — that have been part of Indian tradition historically, as well as others — such as homeopathy — that became part of Indian tradition over the years.
    • Ayurveda and yoga are practised widely across the country.
    • The Siddha system is followed predominantly in Tamil Nadu and Kerala.
    • The Sowa-Rigpa System is practised mainly in Leh-Ladakh and Himalayan regions such as Sikkim, Arunachal Pradesh, Darjeeling, Lahaul & Spiti.

    What will the GCTM be about?

    • The GCTM will aim to focus on evidence-based research, innovation, and data analysis to optimise the contribution of traditional medicine to global health.
    • Its main focus will to develop norms, standards and guidelines in technical areas relating to traditional medicine.
    • It will seek to set policies and standards on traditional medicine products and help countries create a comprehensive, safe, and high-quality health system.
    • The GCTM will support efforts to implement the WHO’s Traditional Medicine Strategy (2014-23).
    • It will serve as the hub, and focus on building a “solid evidence base” for policies and “help countries integrate it as appropriate into their health systems”.

    Why has the WHO felt the need to advance knowledge of traditional medicine?

    • Almost all WHO members have reported widespread use of traditional medicine.
    • These member states have asked for its support in creating a body of reliable evidence and data on traditional medicine practices and products.
    • The WHO has found that the national health systems and strategies do not yet fully integrate traditional medicine workers, accredited courses and health facilities.
    • It has stressed the need to conserve biodiversity and sustainability as about 40% of approved pharmaceutical products today derive from natural substances.
    • It has referred to modernization of the ways traditional medicine is being studied. Artificial intelligence is now used to map evidence and trends in traditional medicine.

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Modern Indian History-Events and Personalities

    Who was Guru Tegh Bahadur?

    Prelims Only | Science Tech | Mains Paper 1: Arts & Culture

    The government will celebrate the 400th birth anniversary of Guru Tegh Bahadur with a two-day event at the Red Fort.

     Guru Tegh Bahadur (1621–1675)

    • Guru Tegh Bahadur was the ninth of ten Gurus of the Sikh religion. He was born at Amritsar in 1621 and was the youngest son of Guru Hargobind.
    • His term as Guru ran from 1665 to 1675. One hundred and fifteen of his hymns are in Guru Granth Sahib.
    • There are several accounts explaining the motive behind the assassination of Guru Tegh Bahadur on Aurangzeb’s orders.
    • He stood up for the rights of Kashmiri Pandits who approached him against religious persecution by Aurangzeb.
    • He was publicly executed in 1675 on the orders of Mughal emperor Aurangzeb in Delhi for himself refusing Mughal rulers and defying them.
    • Gurudwara Sis Ganj Sahib and Gurdwara Rakab Ganj Sahib in Delhi mark the places of execution and cremation of his body.

    Impact of his martyrdom

    • The execution hardened the resolve of Sikhs against religious oppression and persecution.
    • His martyrdom helped all Sikh Panths consolidate to make the protection of human rights central to its Sikh identity.
    • Inspired by him, his nine-year-old son, Guru Gobind Singh Ji, eventually organized the Sikh group into a distinct, formal, symbol-patterned community that came to be known as Khalsa (Martial) identity.
    • In the words of Noel King of the University of California, “Guru Teg Bahadur’s martyrdom was the first-ever martyrdom for human rights in the world.
    • He is fondly remembered as ‘Hind di Chaadar’.

    Try this PYQ:

    Q.Consider the following Bhakti Saints:

    1. Dadu Dayal
    2. Guru Nanak
    3. Tyagaraja

    Who among the above was/were preaching when the Lodi dynasty fell and Babur took over?

    (a) 1 and 3

    (b) 2 only

    (c) 2 and 3

    (d) 1 and 2

     

     

    Post your answers here.

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Festivals, Dances, Theatre, Literature, Art in News

    Festivals in news: Karaga Festival

    Prelims Only | History | Mains Paper 1: Arts & Culture

    The centuries-old Karaga (temple fair) festival was recently held at the Dharmaraya Swamy Temple in Bengaluru.

    Karaga Festival

    • It is celebrated annually in the Chaitra month (March/April) according to the Hindu calendar.
    • The festival has found its roots in the epic Mahabharata.
    • It honours Draupadi as the ideal woman and Goddess Shakti.
    • The word ‘Karaga’ translates to an earthen pot, supporting a floral pyramid and an idol of Goddess.
    • The Karaga is carried on the head of the bearer without touching it.
    • The carrier wears a woman’s attire with bangles, mangal-sutra, and vermillion on his forehead.

    Cultural significance of Karaga

    • The Karaga procession makes a customary halt at Astana e-Hazrath Tawakkal Mastan Shah Saharwardi Dargah to pay obeisance to Tawakkal Mastan.
    • The Dargah, a symbol of syncretic Sufism, has been taken care by the Muzavvar family for several generations.
    • According to them, the history of the Dargah goes back to at least 300 years when Tawakkal Mastan, who came to Bengaluru with his horses looking for business opportunities, was adored as a saint.
    • Hyder Ali, who was the ruler then, was a patron of Mastak for his good deeds.

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • A fatal friendship with Beijing

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Context

    China’s intervention has proved disastrous for the economies of Myanmar, Sri Lanka and Pakistan.

    China-Myanmar relations and its implications

    • Myanmar, China’s closest neighbour with a long history of cross border trade, was the first country to voluntarily turn towards Beijing, from 1988, when the State Law and Order Restoration Council (SLORC) took over the reins of government.
    • World sanctions followed, but Beijing reassured the generals of its continued support and in 1989, signed a treaty of trade and cooperation that made China the sole supporter of the illegitimate military government.
    • The strong western sanctions after 2007, made China virtually its sole trading partner.
    • The link with China became essential for the regime’s survival but did little to increase economic prosperity.
    • Wood alone accounts for about 70 per cent of Myanmar’s exports to China.
    • It’s clear that China is stripping bare Myanmar’s centuries-old teak forests.

    Implications for Pakistan

    • In 2012,  Pakistan signed on to the China Pakistan Economic Corridor.
    • New Delhi and Washington imagined wrongly that the CPEC would lead to a major People’s Liberation Army-Navy (PLAN) expansion into the Indian Ocean through Gwadar, which even now is a largely disused port.
    •  As a conservative IMF estimate put it, Islamabad’s poor management of the economy and reckless borrowing has put its immediate financial needs (2022) at $51 billion.
    • Projects chosen are unviable like the Gwadar port and the Lahore Metro and attracted huge public criticism. The CPEC was put on hold and rebooted.
    • The IMF warned Islamabad of the CPEC repayment boosting the current account deficit, forcing Pakistan to cut Chinese interest payments for 10 years.
    • The CPEC has been a humbling experience for China and an economic disaster for Pakistan.

    Implications for Sri Lanka

    • Against all economic surveys and advice, the Hambantota port was built, it floundered and Sri Lanka transferred the land as equity to China for 99 years.
    • From 2012 to 2016, China accounted for 30 per cent of all FDI to Sri Lanka, becoming the top source of foreign investment
    • Today China is funding 50 projects in the country, involving more than $1 billion, including the Colombo Port and the Lakvijaya thermal power plant.
    • Today, the Sri Lankan economy is in complete meltdown, with China holding the largest amount of Sri Lankan debt.
    • Private banks have run out of funds to finance imports. Its main sources of revenue, tourism and remittances, have dried up, and the government is in a crisis.

    Conclusion

    The recourse to availing Chinese money by Myanmar, Pakistan and Sri Lanka has led to a feeling of hubris among the leaders, inducing them to take bad economic decisions in the perception that Beijing is footing the bills.

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Cyber Security – CERTs, Policy, etc

    Status of India’s National Cyber Security Strategy

    | Security Issues | Mains Paper 3: Cyber Security

    Recently, Chinese state-sponsored hackers targeted Indian electricity distribution centres near Ladakh.

    Amid a surge in cyberattacks on India’s networks, the Centre is yet to implement the National Cyber Security Strategy which has been in the works since 2020.

    Recent trends of Cyber-attacks in India

    • As per American cybersecurity firm Palo Alto Networks’ 2021 report, Maharashtra was the most targeted State in India — facing 42% of all ransomware attacks.
    • India is among the more economically profitable regions for hacker groups and hence these hackers ask Indian firms to pay a ransom, usually using cryptocurrencies, in order to regain access to the data.
    • One in four Indian organisations suffered a ransomware attack in 2021.
    • Indian organisations witnessed a 218% increase in ransomware — higher than the global average of 21%.
    • Software and services (26%), capital goods (14%) and the public sector (9%) were among the most targeted sectors.

    Increase in such attacks has brought to light the urgent need for strengthening India’s cybersecurity.

    What is the National Cyber Security Strategy?

    Conceptualised by the Data Security Council of India (DSCI), the report focuses on 21 areas to ensure a safe, secure, trusted, resilient, and vibrant cyberspace for India.

    The main sectors of focus of the report are:

    • Large scale digitisation of public services: There needs to be a focus on security in the early stages of design in all digitisation initiatives and for developing institutional capability for assessment, evaluation, certification, and rating of core devices.
    • Supply chain security: There should be robust monitoring and mapping of the supply chain of the Integrated circuits (ICT) and electronics products. Product testing and certification needs to be scaled up, and the country’s semiconductor design capabilities must be leveraged globally.
    • Critical information infrastructure protection: The supervisory control and data acquisition (SCADA) security should be integrated with enterprise security. A repository of vulnerabilities should also be maintained.
    • Digital payments: There should be mapping and modelling of devices and platform deployed, transacting entities, payment flows, interfaces and data exchange as well as threat research and sharing of threat intelligence.
    • State-level cyber security: State-level cybersecurity policies and guidelines for security architecture, operations, and governance need to be developed.

    What steps does the report suggest?

    To implement cybersecurity in the above-listed focus areas, the report lists the following recommendations:

    • Budgetary provisions: A minimum allocation of 0.25% of the annual budget, which can be raised up to 1% has been recommended to be set aside for cyber security.
    • Ministry-wise allocation: In terms of separate ministries and agencies, 15-20% of the IT/technology expenditure should be earmarked for cybersecurity.
    • Setting up a Fund of Funds: The report also suggests setting up a Fund of Funds for cybersecurity and to provide central funding to States to build capabilities in the same field.
    • R&D, skill-building and technology development: The report suggests investing in modernisation and digitisation of ICTs, setting up a short and long term agenda for cyber security via outcome-based programs and providing investments in deep-tech cyber security innovation.
    • National framework for certifications: Furthermore, a national framework should be devised in collaboration with institutions like the National Skill Development Corporation (NSDC) and ISEA (Information Security Education and Awareness) to provide global professional certifications in security.
    • Creating a ‘cyber security services’: The DSCI further recommends creating a ‘cyber security services’ with cadre chosen from the Indian Engineering Services.
    • Crisis management: For adequate preparation to handle crisis, the DSCI recommends holding cybersecurity drills which include real-life scenarios with their ramifications. In critical sectors, simulation exercises for cross-border scenarios must be held on an inter-country basis.
    • Cyber insurance: Cyber insurance being a yet to be researched field, must have an actuarial science to address cybersecurity risks in business and technology scenarios as well as calculate threat exposures.
    • Cyber diplomacy: Cyber diplomacy plays a huge role in shaping India’s global relations. To further better diplomacy, the government should promote brand India as a responsible player in cyber security and also create ‘cyber envoys’ for the key countries/regions.
    • Cybercrime investigation: It also suggests charting a five-year roadmap factoring possible technology transformation, setting up exclusive courts to deal with cybercrimes and remove backlog of cybercrimes by increasing centres providing opinion related to digital evidence under section 79A of the IT act.
    • Advanced forensic training: Moreover, the DSCI suggests advanced forensic training for agencies to keep up in the age of AI/ML, blockchain, IoT, cloud, automation.
    • Cooperation among agencies: Law enforcement and other agencies should partner with their counterparts abroad to seek information of service providers overseas.

    Progress in its implementation

    • The Centre has formulated a draft National Cyber Security Strategy 2021 which holistically looks at addressing the issues of security of national cyberspace.
    • Without mentioning a deadline for its implementation, the Centre added that it had no plans as of yet to coordinate with other countries to develop a global legal framework on cyber terrorism.

    Way forward

    • India has to contend with the importance and necessity of cyber offence as much as cyber defence.
    • As of today, India’s primary or possibly only response measures appear to be defensive.
    • India has to also invest in more offensive cyber means as a response.

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Black Money – Domestic and International Efforts

    The Functioning of the Enforcement Directorate (ED)

    | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    The Enforcement Directorate (ED) is in the news now and often.

    About Enforcement Directorate (ED)

    • It goes back to May 1, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
    • It then aimed for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
    • The ED today is a multi-dimensional organisation investigating economic offences under the Prevention of Money Laundering Act (PMLA), Fugitive Economic Offenders Act, Foreign Exchange Management Act and FERA.

    From where does the ED get its powers?

    • When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
    • Therefore, there was a need to control and prevent the laundering of money.
    • The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
    • The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
    • So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).

    At what stage does the ED step in when a crime is committed?

    • Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
    • Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
    • This will be done to find out if any laundering has taken place.

    What differentiates the probe between the local police and officers of the ED?

    Case study:

    • If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
    • If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
    • But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
    • Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
    • Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
    • If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.

    What are the other roles and functions of the ED?

    • The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
    • On the basis of that, the authorities will decide if arrest is needed as per Section 19 (power of arrest).
    • Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning.
    • It is not necessary to summon the person first and then start with the search and seizure.
    • If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.
    • If no one is arrested and only the property is attached, then the prosecution complaint along with attachment order is to be submitted before the adjudicating authority within 60 days.

    Can the ED investigate cases of money laundering retrospectively?

    • If an ill-gotten property is acquired before the year 2005 (when the law was brought in) and disposed off, then there is no case under PMLA.
    • But if proceeds of the crime were possessed before 2005, kept in storage, and used after 2005 by buying properties, the colour of the money is still black and the person is liable to be prosecuted under PMLA.
    • Under Section 3 of PMLA, a person shall be guilty of money-laundering, if such person is found to have directly or indirectly attempted to indulge or knowingly assist a party involved in one or more of the following activities:
    • Concealment; possession; acquisition; use; or projecting as untainted property; or claiming as untainted property in any manner etc.

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Judicial Pendency

    Retirement spree in SC may affect efforts to scale down pendency

    | Polity | Mains Paper 2: Executive & Judiciary

    The retirements in the topmost rung of the judiciary in 2022 will encompass changes in the powerful Supreme Court Collegium and see two new Chief Justices in a span of months.

    Why in news?

    • The retirements come at a time when the court is in the process of steadying itself after particularly brutal waves of the pandemic.

    Pendency in Supreme Court

    • The Supreme Court’s statistics show that 70,362 cases are pending with it as on April 1, 2022.
    • Over 19% of them are not ready to be placed before a Bench for judicial hearing as they have not completed the required preliminaries.
    • While 52,110 are admission matters, 18,522 are regular hearing cases.
    • The number of Constitution Bench cases (both main and connected matters) totals 422.

    General scenario: Pendency of Cases

    • India’s legal system has the largest backlog of pending cases in the world – as many as 30 million pending cases.
    • This number is continuously increasing and this itself shows the inadequacy of the legal system.
    • And also due to this backlog, most of the prisoners in India’s prisons are detainees awaiting trial.

    Factors leading to under-performance of Indian Judiciary

    • The issue of heavy arrears pending in the various courts of the country has been a matter of concern since the time of independence.
    • The primary factors contributing to docket explosion and arrears as highlighted by Justice Malimath Committee report are as follows:
    1. Population explosion
    2. Litigation explosion
    3. Hasty and imperfect drafting of legislation
    4. Plurality and accumulation of appeals (Multiple appeals for the same issue)
    5. Inadequacy of judge strength
    6. Failure to provide adequate forums of appeal against quasi-judicial orders
    7. Lack of priority for disposal of old cases (due to the improper constitution of benches)
    8. Issue of appointment in Quasi-Judicial Bodies

    Way ahead

    • For pendency, time limits should be prescribed for all cases based on priorities.
    • So setting time standards is essential and it will vary for different cases, and also for different courts depending on their disposal capacity.
    • Alternative disputes resolution (ADR) mechanisms should be promoted for out-of-court settlements.

     

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

    Get an IAS/IPS ranker as your 1: 1 personal mentor

Join the Community

Join us across Social Media platforms.