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  • 1st August 2022| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1        Distribution of key natural resources across the world (including South Asia and the Indian sub-continent)

    GS-2        Important aspects of governance, transparency and accountability

    GS-3        Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

    GS-4        Public/Civil service values and Ethics in Public administration: Status and problems; ethical concerns and dilemmas in government and private institutions

    Question 1)

     

    Q.1 What are polymetallic nodules? Highlight their geographical distribution and state their significance. (10 Marks)

     

    Question 2)

    Q.2 How whistleblowers contribute to participatory democracy by use of RTI? Suggest the measures to ensure the protection of whistleblowers. (10 Marks)

    Question 3)

    Q.3 What are the factors responsible for the deterioration of the financial position of the state-owned power distribution companies? Is bailout by the government a solution? (10 Marks)

    Question 4)  

    Q.4 There is a need for an effective climate governance structure within the broad framework of corporate governance. Discuss. (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  February is uploaded on 11th February then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th February is uploaded on 13th February , then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    1. For the philosophy of AWE and payment: 
    CLICK HERE To join Daily AWE

  • Parliamentary panel reviews Goa Civil Code

    A parliamentary panel has reviewed Goa’s uniform civil code, and some of its members feel that there are some peculiar and outdated provisions related to matrimony in it.

    What is Goa Civil Code?

    • The Goa Civil Code is a set of civil laws that governs all residents of the coastal State irrespective of their religion and ethnicity.
    • Citing various positives of the Goa Civil Code, Goa CM had urged that it could be a model for implementing the UCC across the country.

    Why in news?

    • GCC has come under focus amid a call for the implementation of a Uniform Civil Code (UCC) across the country.
    • The UCC features prominently on the present regime’s ideological agenda, and the party had made promises on it in the run-up to the Lok Sabha elections in 2014 and 2019.
    • This had an intimidating impact on certain sections of the population whose archaic provisions of personal laws were untouched for the sake of appeasement.

    Why Goa model is in news?

    • It was observed that a majority of the State’s people are “quite happy and content with it”.
    • It is a living example of peaceful implementation of UCC.
    • There were, however, some peculiar clauses in the law related to matrimony and division of property, which were outdated and not based on the principle of equality.

    What is a Uniform Civil Code?

    • A Uniform Civil Code (UCC) is one that would provide for one personal civil law for the entire country.
    • This would be applicable to all religious communities in their personal matters such as marriage, divorce, inheritance, adoption etc.

    Basis for UCC

    • Article 44, one of the Directive Principles of the Constitution lays down that the state shall endeavour to secure a UCC for the citizens throughout the territory of India.
    • These, as defined in Article 37, are not justiciable (not enforceable by any court) but the principles laid down therein are fundamental in governance.

    UCC vs. Right to Freedom of Religion

    1. Article 25 lays down an individual’s fundamental right to religion
    2. Article 26(b) upholds the right of each religious denomination or any section thereof to “manage its own affairs in matters of religion”
    3. Article 29 defines the right to conserve distinctive culture

    Reasonable restrictions on the Freedom of Religion

    • An individual’s freedom of religion under Article 25 is subject to “public order, health, morality” and other provisions relating to FRs, but a group’s freedom under Article 26 has not been subjected to other FRs.
    • In the Constituent Assembly, there was division on the issue of putting UCC in the fundamental rights chapter. The matter was settled by a vote.
    • By a 5:4 majority, the fundamental rights sub-committee headed by Sardar Patel held that the provision was outside the scope of FRs and therefore the UCC was made less important.

    Minority Opinion in the Constituent Assembly

    • Some members sought to immunize Muslim Personal Law from state regulation.
    • Mohammed Ismail, who thrice tried unsuccessfully to get Muslim Personal Law exempted from Article 44, said a secular state should not interfere with the personal law of people.
    • B Pocker Saheb said he had received representations against a common civil code from various organizations, including Hindu organizations.
    • Hussain Imam questioned whether there could ever be uniformity of personal laws in a diverse country like India.
    • B R Ambedkar said “no government can use its provisions in a way that would force the Muslims to revolt”.
    • Alladi Krishnaswami, who was in favour of a UCC, conceded that it would be unwise to enact UCC ignoring strong opposition from any community.
    • Gender justice was never discussed in these debates.

    What about Personal Laws?

    • Citizens belonging to different religions and denominations follow different property and matrimonial laws which are an affront to the nation’s unity.
    • If the framers of the Constitution had intended to have a UCC, they would have given exclusive jurisdiction to Parliament in respect of personal laws, by including this subject in the Union List.
    • “Personal Laws” are mentioned in the Concurrent List.

    Various customary laws

    • All Hindus of the country are not governed by one law, nor are all Muslims or all Christians.
    • Muslims of Kashmir were governed by a customary law, which in many ways was at variance with Muslim Personal Law in the rest of the country and was, in fact, closer to Hindu law.
    • Even on registration of marriage among Muslims, laws differ from place to place.
    • In the Northeast, there are more than 200 tribes with their own varied customary laws.
    • The Constitution itself protects local customs in Nagaland. Similar protections are enjoyed by Meghalaya and Mizoram.
    • Even reformed Hindu law, in spite of codification, protects customary practices.

     Why need UCC?

    • UCC would provide equal status to all citizens
    • It would promote gender parity in Indian society.
    • UCC would accommodate the aspirations of the young population who imbibe liberal ideology.
    • Its implementation would thus support the national integration.

    Hurdles to UCC implementation

    • There are practical difficulties due to religious and cultural diversity in India.
    • The UCC is often perceived by the minorities as an encroachment of religious freedom.
    • It is often regarded as interference of the state in personal matters of the minorities.
    • Experts often argue that the time is not ripe for Indian society to embrace such UCC.

    These questions need to be addressed which are being completely ignored in the present din around UCC.

    1. Firstly, how can uniformity in personal laws are brought without disturbing the distinct essence of each and every component of the society.
    2. Secondly, what makes us believe that practices of one community are backward and unjust?
    3. Thirdly, has other uniformities been able to eradicate inequalities which diminish the status of our society as a whole?

    Way forward

    • It should be the duty of the religious intelligentia to educate the community about its rights and obligations based on modern liberal interpretations.
    • A good environment for the UCC must be prepared by the government by explaining the contents and significance of Article 44 taking all into confidence.
    • Social reforms are not overnight but gradual phenomenon. They are often vulnerable to media evils such as fake news and disinformation.
    • Social harmony and cultural fabric of our nation must be the priority.

     

    Also read this comprehensive article:

    [Sansad TV] Perspective: Uniform Civil Code

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  • E-waste management

    A proposed framework by the Centre for regulating e-waste in India has upset a key link of India’s electronic waste collection system and threatens the livelihood of thousands of people.

    Menace of E-Waste in India

    • Electronic waste, or electronic goods that are past their productive life and old parts, is largely handled by India’s vast informal sector.
    • Spent goods are dismantled and viable working parts refurbished, with the rest making their way into chemical dismantling units.
    • Many of these units are run out of unregulated sweatshops that employ child labour and hazardous extraction techniques.

    Remedy against this: Extended Producer Responsibility (EPR)

    • To address all of this, the Environment Ministry brought the E-waste (Management) Rules, 2016.
    • This introduced a system of Extended Producer Responsibility (EPR) compelling makers of electronic goods to ensure a proportion of the goods they sold every year was recycled.
    • They are expected to maintain records annually demonstrating this.
    • Most companies however did not maintain an in-house unit in charge of recycling and this gave rise to a network of government-registered companies, called Producer Responsibility Organisations (PRO).

    How PROs work?

    • PROs act as an intermediary between manufacturers and formal recycling
    • They are (expected to be) technologically equipped to recycle end-of-life electronic goods safely and efficiently.
    • The PROs typically bid for contracts from companies and arrange for specified quantities of goods to be recycled.
    • They provide companies certified proof of recycling that they then maintain as part of their records. Several PROs work on consumer awareness and enable a supply chain for recycled goods.

    Functional PROs in India

    • As of March 2022, the Central Pollution Control Board (CPCB) has registered 74 PROs and 468 authorised dismantlers.
    • They have a collective recycling capacity of about 1.3 million tonnes.

    What is the extent of E-Waste production in India?

    • The Ministry estimated 7.7 lakh tonnes of e-waste to have been generated in 2018-19.
    • Around one million tonnes in 2019-20 of which only a fifth (about 22% in both years) has been confirmed to be “dismantled and recycled”.

    What is the controversy now?

    • This May, the Ministry issued a draft notification that does away with the PROs and dismantlers and vests all responsibility of recycling with authorised recyclers.
    • Only a handful of authorised recyclers exist in India.
    • Recyclers will source a quantity of waste, recycle them and generate electronic certificates.
    • Companies can buy these certificates equivalent to their annual committed target and thus do not have to be involved with engaging the PROs and dismantlers.
    • Dismantling a fledgling system was detrimental to the future of e-waste management in India.

    What is the rationale behind?

    • The Centre has not explained its rationale for dismantling the existing system in its draft notification.
    • However, a final policy is yet to emerge.
    • The new rules would track the material that went in for recycling with the output claimed by a recycler when they claimed GST (Goods and Services Tax) input credit.

    Also read this comprehensive article:

    [Yojana Archive] E-waste Management

     

    Try this PYQ:

    Q.In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following?

    (a) The Bio-medical Waste (Management and Handling) Rules, 1998

    (b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999

    (c) The e-Waste (Management and Handling) Rules, 2011

    (d) The Food Safety and Standard Regulations, 2011

     

    [wpdiscuz-feedback id=”soxwqxn8gi” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • PM and President’s photos in Govt Ads: Judicial Interpretation

    The Madras High Court has directed the Tamil Nadu government to include the photographs of the President of India and Prime Minister in advertisements on the 44th Chess Olympiad underway in Chennai.

    Why in news?

    • The HC relied on a 2015 Supreme Court ruling that issued guidelines on government spending on advertisements.

    How can we classify Govt Ads with other political ads?

    The primary cause of government advertisement is to use public funds:

    • To inform the public of their rights, obligations, and entitlements
    • To explain Government policies, programs, services and initiatives.

    2015 Supreme Court’s Ruling

    • In Common Cause v Union of India, the Supreme Court sought to regulate the government expenditure on advertisements.
    • It essentially regulated the 2007 New Advertisement Policy of the Government of India.
    • The petitioners had argued that there is arbitrary spending on advertisements by the government.
    • The allegations ranged from wastage of public money for political mileage to using advertisements as a tool to manipulate media.
    • A three-judge Bench comprising then CJI P Sathasivam, and Justices Ranjan Gogoi and N V Ramana had set up a committee to suggest a better policy.

    What are the guidelines?

    • No endorsement: Patronization of any particular media house must be avoided and award of advertisements must be on an equal basis to all newspapers who may, however, be categorized depending upon their circulation.
    • The Government Advertisements (Content Regulation) Guidelines 2014 have five broad principles:
    1. Advertising campaigns are to be related to government responsibilities
    2. Materials should be presented in an objective, fair manner and designed to meet objectives of the campaign
    3. Advertisements must not directed at promoting political interests of a party
    4. Campaigns must be justified and undertaken in a cost-effective manner
    5. Advertisements must comply with legal requirements and financial regulations

    What did the Supreme Court rule?

    • It largely accepted the committee report except on a few issues:
    1. The appointment of an ombudsman to oversee the implementation of the guidelines
    2. A special performance audit of government spending
    3. An embargo on publication of advertisements on the eve of elections
    • The ruling mandated that government advertisements will not contain a political party’s symbol, logo or flag.
    • They are required to be politically neutral and must refrain from glorifying political personalities.

    What about photographs in advertisements?

    • The Supreme Court agreed with the committee’s suggestion that photographs of leaders should be avoided and only the photographs of the President/ PM or Governor/ CM shall be used for effective government messaging.
    • Then-Attorney General had opposed the recommendation arguing that if the PM’s photograph is allowed in the advertisement, then the same right should be available to his cabinet colleagues as the PM is the “first among the equals”.
    • The court, while restricting the recommendation to the photos of the President and Prime Minister, added the photograph of the Chief Justice of India to that list of exceptions.

    What are the takeaways from the SC and HC verdicts?

    • The SC ruling stepped into content regulation, which is a facet of the right to freedom of speech and expression, and was also in the domain of making policy.
    • This raised questions on the judiciary stepping on the executive’s domain.
    • The SC ruling did not mandate publication of the photograph of the PM and President, but only restricts publication of photos of government officials other than the President, PM, CJI, CM and the Governor.
    • In an opposition-ruled state such as Tamil Nadu, exclusion of the PM’s photos is seen as a political move.
    • The HC said that considering the “national interest” in the issue, the “excuses taken by the state” cannot be accepted.

     

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  • Uncontrolled Descent of Space Debris

    A Chinese booster rocket made an uncontrolled return to earth, leading to US furore against Beijing for not sharing information about the potentially hazardous object’s descent.

    Yet another Chinese irresponsibility

    • Ending over a week of global anxiety and alarm, the debris from a large Chinese rocket – the Long March 5B — crashed to earth over the Pacific and the Indian oceans.
    • It felt into the Sulu Sea near Malaysia.
    • The 22-tonne core stage of the rocket hurtled uncontrollably back to earth. There were fears that it might hit a populated area.
    • China, however, had dismissed these fears despite widespread criticism for rocket re-entry risks imposed by it on the world.

    What is an Uncontrolled Re-entry?

    • Generally, the core or first stage of a rocket is made up of heavy pieces that usually don’t reach orbit after liftoff, and fall back safely along a near-precise projected trajectory.
    • If they do enter an orbit, then a costly de-orbit manoeuvre is required for a steered, controlled return using engine burn.
    • Without a de-orbit manoeuvre, the orbital core stage makes an uncontrolled fall.

    Why did it fell back?

    • Gigantic remnants from China’s Long March 5B rockets’ core stage are known to make such fiery, out-of-control descents back to earth.
    • Most nations’ rockets, separate the launcher from the payload before leaving the atmosphere.
    • An extra engine then gives the payload a final boost.
    • But China’s 5B series does NOT use a second engine and pushes right into orbit, the report points out.

    Why is it difficult to track uncontrolled descents?

    • The variables involved make it difficult to precisely track the re-entry time and drop zone of rocket debris in uncontrolled descents.
    • The factors that make this prediction extremely challenging include atmospheric drag, variations in solar activity, angle and rotational variation of the object among others.
    • A miscalculation of even a minute in re-entry time could result in the final resting place of the debris changing by hundreds of kilometres.
    • It’s important to understand that among the 10 tough things that we do in space, debris re-entry is probably one of the toughest ones to predict.

    Are there laws regulating space junk?

    Yes. The Space Liability Convention of 1972.

    • It defines responsibility in case a space object causes harm.
    • The treaty says that a launching State shall be absolutely liable to pay compensation for damage caused by its space objects on the surface of the earth or to aircraft, and liable for damage due to its faults in space.
    • The Convention also provides for procedures for the settlement of claims for damages.
    • However, there is no law against space junk crashing back to earth.
    • In April this year, suspected debris from a Chinese rocket was found in two Maharashtra villages.

    Cases of settlements

    • In 1979, the re-entry of NASA’s 76-ton Skylab had scattered debris over uninhabited parts of Australia, and the space agency was fined $400 for littering by a local government.
    • The only settlement using the Liability Convention was between the erstwhile Soviet Union and Canada over the debris of Soviet Cosmos 954 falling in a barren region.
    • Canada was paid CAD 3 million in accordance with international law for cleaning up the mess.

    Do you know?

    The 1979 Skylab was rumoured to be falling in India. We may ask our parents who were apparently kids at that time. The event was widely perceived as a Pralay (doomsday) in rural India back then! People were in all joy with festive food/partying every day fearing so that they would never see the next dawn!!

  • Exercise AL NAJAH-IV

    India and Oman will carry out a 13-day military exercise with a focus on counter-terror cooperation.

    Exercise AL NAJAH-IV

    • This is the fourth edition of India-Oman joint military exercise ‘AL NAJAH-IV’.
    • It is held between contingents of Indian Army and the Royal Army of Oman is scheduled to take place at the Foreign Training Node of Mahajan Field Firing Ranges.
    • The previous edition of the exercise was organised in Muscat in March 2019.
    • The scope of the exercise includes “professional interaction, mutual understanding of drills and procedures, the establishment of joint command and control structures and elimination of terrorist threats”.

    India-Oman Relations: A Backgrounder

    • The Sultanate of Oman is a strategic partner of India in the Gulf.
    • Both nations are linked by geography, history and culture and enjoy warm and cordial relations.
    • An Indian consulate was opened in Muscat in February 1955 which was upgraded to a consulate general in 1960 and later into a full-fledged embassy in 1971.
    • The first ambassador of India arrived in Muscat in 1973.

    History of the ties

    • Oman, for many years, was ruled by Sultan Qaboos bin Said al Said, who was a friend of India.
    • Sultan Qaboos, the longest-reigning leader of the modern Arab world, died in January ‘2020 at the age of 79.
    • He was a man who was, as a student, taught by Shankar Dayal Sharma who went on to become the President of India.
    • Sultan Qaboos’s father, an alumnus of Ajmer’s Mayo College, sent his son to study in Pune for some time, where he was former President Shankar Dayal Sharma’s student.

    Economic ties

    • Expatriate community: Oman has over five hundred thousand Indian nationals living there making them the largest expatriate community in Oman. They annually remit $780 million to India.
    • Bilateral trade: In 2010, bilateral trade between India and Oman stood at $4.5 billion. India was Oman’s second-largest destination for its non-oil exports and its fourth-largest source for Indian imports.
    • Energy: India has been considering the construction of a 1,100-km-long underwater natural gas pipeline from Oman called the South Asia Gas Enterprise (SAGE).

    Defense cooperation

    Oman is the first Gulf nation to have formalized defense relations with India.

    • Naval cooperation: The Indian Navy has berthing rights in Oman, and has been utilizing Oman’s ports as bases for conducting anti-piracy operations in the Gulf of Aden.
    • Tri-services base: In February 2018, India announced that it had secured access to the facilities at Duqm for the Indian Air Force and the Indian Navy. Duqm had previously served as a port for the INS Mumbai.
    • Arms trade: The standard issue rifle of the Royal Army of Oman is India’s INSAS rifle.
    • Bilateral exercises: Naseem al-Bahr (Arabic for Sea Breeze) is a bilateral maritime exercise between India and Oman. The exercise was first held in 1993.

    Significance of Oman for India

    • Oman is India’s closest defense partner in the Gulf region and an important anchor for India’s defense and strategic interests.
    • It is the only country in the Gulf region with which all three services of the Indian armed forces conduct regular bilateral exercises and staff talks, enabling close cooperation and trust at the professional level.
    • It also provides critical operational support to Indian naval deployments in the Arabian sea for anti-piracy missions.

    Duqm port and its strategic imperative

    • In a strategic move to expand its footprint in the Indian Ocean region, India has secured access to the key Port of Duqm in Oman for military use and logistical support.
    • This is part of India’s maritime strategy to counter Chinese influence and activities in the region.
    • The Port of Duqm is strategically located, in close proximity to the Chabahar port in Iran.
    • With the Assumption Island being developed in Seychelles and Agalega in Mauritius, Duqm fits into India’s proactive maritime security roadmap.
    • In recent years, India had deployed an attack submarine to this port in the western Arabian Sea.

    Deterrent in ties: Chinese influence in Oman

    • China started cultivating ties with the Arab countries following the former Soviet Union’s invasion of Afghanistan.
    • Beijing has cultivated close ties with Oman and the latter was, in fact, the first country to deliver oil to China.
    • As of today, 92.99 per cent of Oman’s oil exports go to China, making China Oman’s largest oil importer.
    • Oman and China signed an agreement to establish an Oman-China Industrial Park at Duqm in 2016.
    • China has identified Oman as a key country in the region and has been enhancing defence ties with it steadily.

    Way forward

    • India does not have enough energy resources to serve its current or future energy requirements. The rapidly growing energy demand has contributed to the need for long term energy partnerships with countries like Oman.
    • Oman’s Duqm Port is situated in the middle of international shipping lanes connecting East with West Asia.
    • India needs to engage with Oman and take initiatives to utilise opportunities arising out of the Duqm Port industrial city.

     

     

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  • [Sansad TV] Perspective: Supreme Court’s PMLA Ruling

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    PC: The Hindu

    Context

    • Delivering its verdict on a batch of petitions concerning the interpretation of certain provisions of the Act, the SC bench opined that money laundering is a “heinous” crime.
    • In this article, we will talk about the Supreme Court’s ruling on the Prevention of Money Laundering Act.

    Why in news?

    • The verdict came on an extensive challenge raised against the amendments introduced in 2002 Act by way of Finance Acts.
    • Also bail provisions in PMLA act were contested in the apex court.

    Key observations by the Supreme Court

    • Possessions of proceeds: Mere possession of proceeds of crime (without any integration, layering etc.) are sufficient to allege money laundering
    • Preventing crucial crimes: PMLA not only affects the social and economic fabric of a nation but also tends to promote other serious offenses like terrorism and drug trafficking.
    • Curbing illicit financing: The court noted that the law was enacted to address the urgent need for comprehensive legislation to prevent money laundering and prosecute those indulging in activities related to the proceeds of crime.
    • Power of arrests are legible: The court also upheld the EDs powers relating to arrest, attachment of property involved in money laundering, search and seizure under the PMLA, which were challenged by multiple petitioners.
    • Money laundering is no ordinary offence: It is, therefore, a separate class of offence requiring effective and stringent measures to combat the menace of money laundering,” the Court held.
    • Enforcement Case Information Report (ECIR): ECIR cannot be equated with FIR and ECIR is an internal document of the ED. Supply of ECIR to accuse is not mandatory and only disclosure of reasons during arrest is enough.
    • Twin bail: On the issue of twin bail conditions under the PMLA, the court ruled that the stringent conditions for bail under the Act are legal and not arbitrary.
    • Quantum of Punishment: The punishment provided for the offence is certainly one of the principles in deciding the gravity of the offence. However, it cannot be said that it is the sole factor in deciding the severity of offence as contended by the petitioners.
    • Predicate offense: The court made it clear that the offence under Section 3 is dependent on illegal gain of property as a result of criminal activity relating to a scheduled offence. It relates to the process or activity connected with such property that constitutes the offence of money laundering.

    What were the petitions?

    • Petitions were filed against the amendments, which the challengers claimed would violate personal liberty, procedures of law and the constitutional mandate.
    • The petitioners included many veteran politicians who all claimed that the “process itself was the punishment”.
    • There were submissions that the accused’s right against self-incrimination suffered when the ED summoned them and made them sign statements on threats of arrest.
    • But the court said these statements were recorded as part of an “inquiry” into the proceeds of crime.
    • A person cannot claim right against self-incrimination at a summons stage.

    What is Money Laundering?

    • Section 3 of the Act defines money laundering.
    • It initially read that anyone involved in any process or activity connected with the proceeds of crime including its “concealment, possession, acquisition or use” and projecting or claiming it as untainted property shall be guilty of the offense of money-laundering.
    • In 2019, the government made a change to Section 3, adding “or” between the words “concealment”, “possession”, and “acquisition”.
    • The petitioners before the top court, comprising politicians and industrialists, complained that the 2019 amendment enlarged the ambit of the principal section by including mere concealment or possession.

    Explaining beyond legal terms

    • Money laundering is the illegal process of making large amounts of money.
    • This money is generated by a criminal activity but may appear to come from a legitimate source.
    • Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery, and computer fraud schemes that produce large profits.

    What are the different stages involved in money laundering?

    Generally, money laundering is a three-stage process:

    1. Placement: The crime money is injected into the formal financial system.
    2. Layering: Money injected into the system is layered and spread over various transactions and book-keeping tricks to hide the source of origin.
    3. Integration: Laundered money is withdrawn from the legitimate account to be used for criminal purposes. Now, money enters the financial system in such a way that the original association with the crime is disassociated. The money now can be used by the offender as legitimate money.

    Note: All three sources may not be involved in money laundering. Some stages could be combined or repeated many times.

    What are different methods of money laundering?

    • Smurfing (the criminal breaks up large chunks of cash into multiple small deposits, often spreading them over many different accounts, to avoid detection.)
    • Use of currency exchanges
    • “Mules” (cash smugglers, who sneak large amounts of cash across borders and deposit them in foreign accounts, where money-laundering enforcement is less strict.)
    • Investing in commodities such as gems and gold that can be moved easily to other jurisdictions
    • Discreetly investing in and selling valuable assets such as real estate, cars, and boats;
    • Gambling and laundering money at casinos;
    • Counterfeiting
    • Using shell companies (inactive companies or corporations that essentially exist on paper only).
    • Hawala transactions

    What are some of the national and global efforts to combat money laundering?

    [A] Some of the national efforts are:

    1. Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976,
    2. Narcotic Drugs and Psychotropic Substances Act, 1985, and
    3. Prevention of Money-Laundering Act, 2002 (PMLA), PMLA (Amendment) Act, 2012

    Other than these efforts two important agencies/ units involved are-

    1. Financial Intelligence Unit-IND: It is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
    2. Enforcement Directorate (ED): It is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. Main function of ED is to Investigate offenses of money laundering under the provisions of the Prevention of Money Laundering Act, 2002(PMLA).

    Note: India is a full-fledged member of the FATF and follows its guidelines.

    [B] Some of the global efforts are

    • Vienna Convention,
    • 1990 Council of Europe Convention
    • International Organization of Securities Commissions (IOSCO)
    • Financial Action Task Force (It has been set up by the governments of the G-7 countries),
    • IMF
    • United Nations office on Drugs and Crime

    Why prevent money laundering?

    • Corruption in high offices: This is a major facilitator of money laundering.
    • Worldwide nexus: Three “supra-national or transnational” crimes which have brought together the global community are narcotics, money laundering and terrorism.
    • Existence of safe homes: People accused of money laundering run to small nations with no extradition treaty with India where they can buy citizenship.
    • Preventing terrorism: Money laundering and terrorism financing activity in one country can have serious cross-border and even global adverse effects.
    • Huge social costs: This include allowing drug traffickers, smugglers, and other criminals to expand operations and the transfer of economic power from the market, government, and citizens to criminals.

    Critical view of the Judgment

    • Lack of judicial standards: It is argued that the judgment falls short of judicial standards of reviewing legislative action.
    • Downplay of FRs: It invokes legal framework for combating money-laundering so inviolable that possible violation of fundamental rights can be downplayed.
    • Overemphasis on global pledge: The judgment repeatedly invokes the “international commitment” behind Parliament’s enactment of the law to curb the menace of laundering.
    • Selective targeting is justified: The ED has also been manifestly selective in opening money-laundering probes, rendering any citizen vulnerable to search, seizure, and arrest at the whim of the executive.
    • Self-incrimination and reverse burden of proof: This was violative of Article 20(3), which provided protection against self-incrimination.
    • Obsolete arguments: The Court relied on Article 39 of the Constitution, part of the DPSP that mandates the State to prevent concentration of wealth, to uphold the stringent bail conditions under PMLA.
    • Free hand to ED: The constitutionality of several provisions of the PMLA has been considered in the latest judgment and all of them have been upheld, the Court should have at least placed some additional safeguards on exercise of powers by the ED.

    Is further Constitutional Challenge possible?

    • The judgment may be reviewed further by a five or seven-judge bench but the likelihood of the same immediately is not high.
    • As we have seen in the past, judgments of constitutional significance tend to be revisited (if at all) after several years when a situation arises which renders such interference absolutely necessary.
    • But yes a larger bench is already considering the issue of whether amendments can be passed to PMLA under Finance Act like a money bill.
    • It may be worth pointing out, however, that it can sometimes take years for a Constitution Bench (a five, seven or nine-judge bench of the top court) to arrive at a conclusion.

    Way ahead

    • The evolving threats of money laundering supported by the emerging technologies need to be addressed with the equally advanced Anti-Money Laundering mechanisms like big data and artificial intelligence.
    • Both international and domestic stakeholders need to come together by strengthening data sharing mechanisms amongst them to effectively eliminate the problem of money laundering.
    • Similarly, FRs do exist everywhere. And they cannot be used as brackets to prevent investigation agencies since the FRs of large section of population matters than any individual.

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  • How did Mourya study for just 5hr/day, managed a full-time job, and secured an AIR 28 in UPSC 2021: Masterclass by IAS topper | Register for recorded video + Personalized timetable

    How did Mourya study for just 5hr/day, managed a full-time job, and secured an AIR 28 in UPSC 2021: Masterclass by IAS topper | Register for recorded video + Personalized timetable

    Special session with AIR 28 Mourya Bharadwaj concluded. | Register and get: VIDEO RECORDING + PERSONALIZED TIMETABLE + MENTORSHIP CALL

    click and register for the RECORDED VIDEO + personalized timetable | submit your query | book your slot with AIR 28, UPSC 2021 Mourya | FREE Mentorship + Samachar Manthan module

    This is for those who missed the amazing session by Mourya Bharadwaj on How to clear UPSC while doing a full time job. Get the recording of the session and a super important Personalized timetable PDF.

    Time management is a #UPSCskill that tops all other skills in this long journey. Moreover, the complexity and vastness of the syllabus, unpredictability and ever-changing pattern of the UPSC exam, and cut-throat competition necessitate you to invest your time wisely.

    Over that, if you are a working professional, college student, or homemaker, and preparing for this exam, and if you don’t have a workable timetable, you won’t be able to stay consistent and your preparation will suffer.

    Time management isn’t the main thing. It is the only thing.

    Mourya Bharadwaj, has been CivilsDaily’s mentorship student and he achieved this success, AIR 28 all the while he was working in an MNC.

    Mourya concluded up an interactive session where he engaged and took up questions 1-1 from the aspirants on time management, timetable, and staying consistent.

    Other than the points mentioned above we will be discussing the following issues as well.

    1. Management of Priorities – UPSC, family, life, and work.
    2. Reducing time on non-priorities.
    3. Planning ahead, making targets, staying consistent w.r.t targets.
    4. How should the syllabus be approached to complete it within the time limit?
    5. Balancing prelims-mains on one hand and GS-current affairs on the other.
    6. How to determine the primary focus areas of the Prelims, Mains, and Personality tests?
    7. How to apply bookish as well as classroom knowledge to the exam?’
    click and register for the RECORDED VIDEO + personalized timetable | submit your query | book your slot with AIR 28, UPSC 2021 Mourya | FREE Mentorship + Samachar Manthan module
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    What The Hindu mentioned about Civilsdaily Mentorship

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    click and register for the RECORDED VIDEO + personalized timetable | submit your query | book your slot with AIR 28, UPSC 2021 Mourya | FREE Mentorship + Samachar Manthan module
    How to beat the unpredictability of UPSC with Current Affairs for UPSC CSE 2023-24 | (FREE)Masterclass by Dimple Chouhan, Senior IAS faculty | Recorded video, PDF & Personalized Guidance

  • [Burning Issue] India’s Civil Aviation Crisis

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    Let’s talk about what’s happening in the aviation sector:

    1. Quite a lot flights are not taking off
    2. Staff are striking,
    3. Luggage is not being loaded or are going missing,
    4. Pilots don’t want to fly
    5. Airports want airlines to cut capacity but airlines won’t oblige
    6. Queues are long and passengers are suffering

    India’s ailing Aviation Sector

    • It is facing a unique crisis a crisis of credibility and safety.  Let me show you some recent headlines to start with.
    • The windshield of a go air flight cracks mid-air, two go air flights suffer engine snags, a flight could not take off because of a dog on the runway.
    • A bird was found in the cockpit of an Air India Express cruising at 37 000 feet.
    • One flight suffered an engine snag another noticed smoke in the cabin.

    India’s Aviation Industry: A backgrounder

    • India is the world’s third largest aviation sector it is home to more than 150 million flyers every year.
    • There are 15 airlines, two more will soon be operational and more than a million flights land and take off from India every year.
    • The country has 137 airports and dreams of adding 100 more according to airbus.  India’s domestic air traffic will grow five times in the next two decades.
    • Nearly 90% of the aviation traffic is domestic and low-cost carriers account for nearly 70% of the domestic seats.
    • The average domestic fare has fallen by more than 70% since 2005.

    Why are India’s airlines suffering so many technical glitches?

    • Why are there so many emergency landings you must have heard of the DGCA or the directorate general of civil aviation it is the government body that’s responsible for airline safety issues the dgca is blaming these snags on staff shortage.
    • Every flight is inspected and certified before take-off.
    • Aircraft maintenance engineers they’re called AME aircraft maintenance engineers.
    • This malfunction is happening because of a shortage of engineers.

    Who’s responsible for the shortage?

    • You see a lot of airlines have outsourced engineering to whom the likes of Air India engineering which is still owned by the government of India then there is Artworks Max Aerospace group gmr, spice jet technique.
    • Some of these companies are short of staff and this staff shortage is risking lives.

    Reasons behind the Crisis

    • In the past years, aviation was one sector that was shining in terms of double-digit growth in passenger traffic for many years.
    • However, that too is currently seeing complications, reflecting the adverse growth in the general economy.
    • It should be noted that the aviation sector is a very high multiplier of both economic growth and employment and any downturn would affect the economy itself.
    • However, airlines are currently in a financial mess.

    (1) Pandemic incurred losses

    • Indian airlines and airports incurred financial losses worth Rs 22,400 crore in the last financial year amid the coronavirus pandemic, according to official data.
    • Besides, 75 per cent of Airports Authority of India-operated airports are incurring losses. Also, AAI’s revenue came down to Rs 889 crore during April-June this year.

    (2) High fuel prices and taxes

    • As far as the domestic sector is concerned, airlines work at a huge disadvantage as they are burdened by high taxes and levies at one end and high Air Turbine Fuel (ATF) prices on the other.
    • The ideal cost of ATF should not exceed beyond 25% of the total operating cost.  
    • A central excise imposition of 14% and sales tax levied by the state governments on ATF can be as high as 30%.
    • Attempts to bring ATF under GST and cutting it down to 12% have not been accepted by the GST Council.

    (3) Rupee depreciation

    • Any deterioration of the exchange rate of rupees to the US dollar also causes adverse impacts on the profits of the airlines.
    • Deterioration of international fuel prices also plays a role.
    • Due to this toxic mix, the operational cost in the domestic sector remains high.

    (4) Economics of tickets fare

    • Due to the large order of planes, the total capacity of seats is increasing, leading to the increasing need to fill up the growing availability of seats.
    • Thus, airline ticket prices are decided by algorithms that change fares based on several factors like past bookings, remaining capacity, average demand per route, probability of selling more seats later etc.
    • This computer-based dynamic pricing system causes passengers acute distress during holidays/festivals or calamities when price sharply increase.

    (5) Airport and aircraft maintenance

    • The Airports Authority of India (AAI) is the custodian of all civil airports in India.
    • While a dozen airports are profitable, the rest are cross-subsided by AAI.
    • Airport improvement involves not just upgrading the terminals, but also the runway, navigational aid and equipment needed for the safety and security.
    • The AAI is currently leasing out bigger airports on a long-term basis.
    • However, the lessee company is selected based on the highest percentage of revenue it can share with the AAI.
    • The Delhi International Airport share 46% of its revenue while Mumbai is a little less. The newly privatized airports are even higher.

    (6) Skill shortage

    • Although India has the world’s second-largest population, the aviation industry faces a severe shortage of skilled workforce.
    • The low-quality training institutes are not training the necessary engineers, technicians and other professionals to meet the demand of this sector.
    • These are the reasons behind aircraft maintenance engineers.

    (7) Disproportionate workforce

    • While some airlines like Air India have surplus manpower, some like IndiGo are suffering from manpower shortage.
    • In fact, the surplus manpower of Air India is one of the major causes of its financial crisis.

    (8) Congestions at airports

    • India’s major airports suffer from congestion of passengers and limited runways.
    • For instance, Mumbai Airport, which is a single runway airport handles over 900 flights each day on an average.
    • That is approximately 38 to 40 flights each hour.
    • Thus, congestion leads to delay in operations and a decrease in the operational efficiency of both airlines and airports.

    Impact of such incidences

    • These incidences are hurting India’s image in recent weeks.
    • Several Indian flights had to make emergency landings abroad, even in Pakistan.
    • Now India and Pakistan don’t have an aviation agreement the two countries, do not have direct flights and they don’t see eye to eye we know that.
    • What about India, the world began questioning India’s aviation sector. The repeated technical snags are making headlines in West Asia in the UK.
    • This raises concerns about flight safety in India and Indian carriers.

    Another aspect: Ambitious UDAN Scheme

    • The Ude Desh Ka Aam Nagrik (UDAN) scheme is a low-cost flying scheme launched with the aim of taking flying to the masses.
    • The first flight under UDAN was launched by the PM in April 2017.
    • It is also known as the regional connectivity scheme (RCS) as it seeks to improve air connectivity to tier-2 and tier-3 cities through revival of unused and underused airports.

    Working of the Scheme

    • Airlines are awarded routes under the programme through a bidding process and are required to offer airfares at the rate of ₹2,500 per hour of flight.
    • At least 50% of the total seats on an aircraft have to be offered at cheaper rates.
    • In order to enable airlines to offer affordable fares they are given a subsidy from the govt. for a period of three years.

    Present status

    • A total of nine rounds of bidding have taken place since January 2017.
    • The Ministry of Civil Aviation has set a target of operationalizing as many as 100 unserved and underserved airports and starting at least 1,000 RCS routes by 2024.
    • So far, the Airports Authority of India (AAI) has awarded 948 routes under UDAN, of which 403 routes have taken off that connect 65 airports.
    • Out of the total 28 seaplane routes connecting 14 water aerodromes, only two have commenced.

    Issues with the UDAN

    • Discontinuance: In reality, some of the routes launched have been discontinued as most of the routes awarded under UDAN are not active.
    • On-paper Ambitions: UDAN was expanded to provide improved connectivity to hilly regions and islands through helicopters and seaplanes. However, they mostly remain on paper.
    • The reasons include:
    1. Failure to set up airports or heliports due to lack of availability of land
    2. Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
    3. Adverse impact of the COVID-19 pandemic

    Various challenges

    • Lack of funds: Many small airlines await infusion of funds, to be able to undertake maintenance of aircraft, pay rentals to lessors, give salaries to its staff, etc.
    • Maintenance issue: Many players don’t have more than one or two planes and they are often poorly maintained. New planes are too expensive for these smaller players.
    • Availability of pilots: Often, they also have problems with the availability of pilots and are forced to hire foreign pilots which costs them a lot of money and makes the business unviable.
    • Competition: Only those routes that have been bagged by bigger domestic players such as IndiGo and SpiceJet have seen a better success rate.

    Way forward

    • Aviation is a critical component of the nation’s transportation sector and plays a pivotal role in economic growth and employment generation.
    • Aviation could be a major growth engine to make India a $5 trillion economy by 2024.
    • The government should look into the aviation sector holistically, as a part of the economy as it is going to play a crucial role in economic development and is no more a sector of the privileged class only.
    • The current model of taxation of the civil aviation industry appears unsustainable.
    • Therefore, fuel taxes should be brought under the GST to reduce the operation cost of the airlines.
    • This sector has shown the indomitable spirit- never hesitant to be in the frontline by ensuring the safe movement of people and essential cargo during the nation’s fight against the pandemic.
    • Some leeway at the right time will safeguard aviation to catch up the growth trajectory faster.

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