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  • 6th October 2020| Daily Answer Writing Enhancement

    Important Announcement:  Topics to be covered on 7th October-

    GS-1 Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues.

    GS-4 Case studies.

    Question 1)

    The American Revolution inspired the French revolution and yet it was markedly different from it. Elaborate. 10 marks

    Question 2)

    Why passing of the Farm Acts by the Union government has been challenged by the States on the ground of its constitutional validity? Also, examine its implications for federalism. 10 marks

    Question 3)

    What are the Asset Reconstruction Companies (ARC)? What are the challenges ARCs face under the IBC and suggest the measures to increase the role of ARCs in turning around a distressed business. 10 marks

    Question 4)  

    You retired as a finance manager from a Public Sector Undertaking (PSU). After retirement you are offered a job in a private company as its finance head and you have accepted it. The company has a procurement contract with the PSU which you worked for. Now that contract is up for renewal through competitive bidding. You have been asked to lead the team responsible for bidding of this contract. While working in the PSU, you had an opportunity to work on areas relating to financial accounting, procurement, contracts and bids. You are concerned that you might breach the confidentiality if you accept the assignment in the present company. You also suspect that your knowledge and experience of working in the PSU were seen as good reasons for appointing you to the position in the present company. The loss of such a major contract would have a significant effect on the financial performance of Company. Evaluate the merits and demerits of each of the options given below and finally suggest what course of action you would like to take, providing adequate reasons. i. Do not accept the assignment as it will lead to breach of confidentiality. ii. Do not lead the team but guide them from outside. iii. Accept to lead the team and use your expertise in bidding for the contract. iv. Resign from the job. Suggest any other possible option(s). Evaluate all of them and suggest the best course of action, giving your reasons for it. 10 marks

    Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

    *In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

    For the philosophy of AWE and payment, check  here: Click2Join

  • GST Council and its Functioning

    The Goods and Services Tax (GST) Council has failed to iron out differences between some States and the Centre over the plan to get States to borrow from the market to meet the shortfall in compensation cess collections this year.

    Try this question from CSP 2018:

    Q.Consider the following items:

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

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

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 1, 2, 3 and 4

    About GST Council

    • The GST Council is a federal body that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform.
    • It is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India.
    • The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states.
    • The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.

    How is the GST Council structured?

    • The GST is governed by the GST Council. Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of the Article 279A.
    • According to the article, the GST Council will be a joint forum for the Centre and the States. It consists of the following members:
    1. The Union Finance Minister will be the Chairperson
    2. As a member, the Union Minister of State will be in charge of Revenue of Finance
    3. The Minister in charge of finance or taxation or any other Minister nominated by each State government, as members.

    Terms of reference

    • Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as the goods and services will be subject or exempted from the Goods and Services Tax.
    • They lay down GST laws, principles that govern the following:
    1. Place of Supply
    2. Threshold limits
    3. GST rates on goods and services
    4. Special rates for raising additional resources during a natural calamity or disaster
    5. Special GST rates for certain States

  • 2020 Nobel for Hepatitis C Virus discovery

    Americans Harvey J Alter and Charles M Rice, and British scientist Michael Houghton were awarded the Nobel Prize for Medicine or Physiology on Monday for the discovery of the hepatitis C virus.

    Try this PYQ:

    Q.Which one of the following statements is not correct? (CSP 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 arc 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.

    Hepatitis C Virus

    • Hepatitis C virus (HCV) is a bloodborne virus and causes liver diseases. It refers to an inflammatory condition of the liver.
    • The novel virus caused several deaths in the 1960s and 1970s — but remained unknown until its discovery in the late 1980s.

    What are other Hepatitis Viruses?

    • Before the discovery of the Hepatitis C virus, two other viruses were known to cause hepatitis in patients.
    • The Hepatitis A virus was known to spread mainly through contaminated food and water and caused a relatively milder form of liver inflammation.
    • Hepatitis B, discovered in the 1960s, was known to transmit mainly through infected blood and caused a more serious form of the disease.
    • Incidentally, the discovery of the Hepatitis B virus too was rewarded with a Nobel Prize in Medicine, given to Baruch Blumberg in 1976. There are vaccines available for this disease now.

    How Hepatitis C came to observation?

    • The discovery and identification of the Hepatitis B virus facilitated the development of a diagnostic test to detect its presence in blood.
    • Thereafter, only blood sanitized from this virus would be given to patients, but it was observed that even this sanitized blood was able to prevent only 20% of the blood-borne hepatitis cases.
    • It was then that the search for the new virus began.

    How is Hepatitis C treated?

    • Presently there is no vaccine available for HCV. However, it can be treated with antiviral medication.
    • Hepatitis A and B are preventable by vaccine.

    Back2Basics:

    https://www.civilsdaily.com/news/in-news-nobel-prize/

  • What is Sheltering of Taxes?

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

    We can expect a statement based question comparing Tax Shelters and Tax Heavens.

    What is a Tax Shelter?

    • A tax shelter is a financial vehicle that an individual can use to help them lower their tax obligation and, thus, keep more of their money.
    • It is a legal way for individuals to “stash” their money and avoid getting it taxed.
    • A tax shelter is entirely different from a tax haven because the latter exists outside the country and its legality can, at times, be questionable.
    • A tax shelter, on the other hand, is entirely legal and keeps all monies within an individual’s home country.
  • What is Ketogenic Diet?

    Ketogenic or Keto Diet is popularly followed as a weight loss diet across the world.

    Try this PYQ:

    Q.Regular intake of fresh fruits and vegetables is recommended in the diet since they are a good source of antioxidants. How do antioxidants help a person maintain health and promote longevity? (CSP 2014)

    (a) They activate the enzymes necessary for vitamin synthesis in the body and help prevent vitamin deficiency.

    (b) They prevent excessive oxidation of carbohydrates, fats and proteins in the body and help avoid unnecessary wastage of energy.

    (c) They neutralize the free radicals produced in the body during metabolism.

    (d) They activate certain genes in the cells of the body and help delay the ageing process.

    What is Ketogenic Diet?

    • The Keto Diet is one of the most popular weight-loss diets the world over.
    • It consists of a high-fat, moderate-protein and low-carb diet.
    • It helps in weight loss by achieving ketosis — a metabolic state where the liver burns body fat and provides fuel for the body, as there is limited access to glucose.

    What constitutes a keto diet?

    • A classic keto generally requires that 90 per cent of a person’s calories come from fat, 6 per cent from protein and 4 per cent from carbs.
    • But there are many versions doing the rounds since this one was designed for children suffering from epilepsy to gain control over their seizures.

    How does it impact the body?

    • If we starve the body of carbohydrate, after burning out the glucose, the liver starts breaking down fats for energy.
    • Ketosis is common in all kinds of fasting, but in a keto diet, when one is feeding it by giving a lot of fats from outside without carbs, it can become mildly toxic.
    • It may lead to many nutrient deficiencies such as carbohydrates, proteins, vitamins (especially vitamin A, D, E, & K) and minerals like calcium, phosphorus, sodium.
    • Extreme carbohydrate restriction can lead to hunger, fatigue, low mood, irritability, constipation, headaches, and brain fog, which may last days to weeks

    What impact does it have on our kidneys?

    • Even the moderate increase in protein needs to be carefully monitored, especially in those who are already suffering from chronic kidney disease, as it could lead to kidney failure.
    • One should get a thorough assessment and make sure they have normal kidney function before choosing this diet.
    • This diet could lead to increased stress on the kidneys and result in kidney stones, as they are made to work overtime.
  • Personality in news: Shyamji Krishna Varma

    PM has paid rich tributes to revolutionary freedom fighter Shyamji Krishna Varma on his birth anniversary.

    Try this PYQ:

    Q. The Ghadr (Ghadar) was a –

    (a) Revolutionary association of Indians with headquarters at San Francisco.

    (b) Nationalist organization operating from Singapore

    (c) Militant organization with headquarters at Berlin

    (d) Communist movement for India’s freedom with head-quarters at Tashkent

    About Shyamji Krishna Varma

    • SK Varma (1857–1930) was an Indian revolutionary fighter, a patriot, lawyer and journalist who founded the Indian Home Rule Society, India House and The Indian Sociologist in London.
    • He was a noted scholar in Sanskrit and other Indian languages.
    • He pursued a brief legal career in India and served as the Divan of a number of Indian princely states in India.
    • He had, however, differences with Crown authority, was dismissed following a supposed conspiracy of local British officials at Junagadh and chose to return to England.
    • An admirer of Dayanand Saraswati’s approach of cultural nationalism, and of Herbert Spencer, Krishna Varma believed in Spencer’s dictum: “Resistance to aggression is not simply justified, but imperative”.
  • [pib] Coalition of Epidemic Preparedness for Innovation (CEPI)

    Translational Health Science And Technology Institute (THSTI), an autonomous institute of the Department of Biotechnology, has now been recognized by Coalition of Epidemic Preparedness for Innovation (CEPI) as one of the Global Network of Laboratories for centralized assessment of COVID 19 Vaccines.

    Note: CEPI is neither a WHO subsidiary nor a UN body .

    Coalition of Epidemic Preparedness for Innovation (CEPI)

    • The CEPI is a foundation that takes donations to finance independent research projects to develop vaccines against emerging infectious diseases (EID).
    • It is focused on the WHO’s “blueprint priority diseases.
    • These diseases include the Middle East respiratory syndrome-related coronavirus (MERS-CoV), the SARS coronavirus 2 the Nipah virus, the Lassa fever virus, and the Rift Valley fever virus, as well as the Chikungunya virus and the hypothetical, unknown pathogen “Disease X”.
    • CEPI investment also requires “equitable access” to the vaccines during outbreaks.
    • CEPI was conceived in 2015 and formally launched in 2017 at the World Economic Forum (WEF) in Davos, Switzerland.
  • Need for streamlining the Insolvency and Bankruptcy Code

    The article analyses the impact of Insolvency and Bankruptcy Code (IBC) on the insolvency resolution and on Indian economy.

    Measures that will improve investment

    1)  IBC: transforming insolvency resolution

    • IBC replaced inefficient bankruptcy law regime and has transformed insolvency resolution in India.
    • The IBC has focused on time-bound resolution, rather than liquidation.
    • IBC acts as an empowering tool to support companies falling within its ambit.
    • It has successfully instilled confidence in the corporate resolution methodology.
    • It has allowed credit to flow more freely to and within India while promoting investor and investee confidence.
    • The IBC is both flexible and dynamic, which makes it impactful, given how forward thinking the concept of an omnibus legislation of its nature actually is.
    • Through the Insolvency and Bankruptcy Board of India (IBBI), it has established an unprecedented organisation that both regulates and develops insolvency policy, and assesses market realities.

    Impact of IBC

    •  According to the Resolving Insolvency Index, India’s ranking improved to 52 in 2019 from 108 in 2018.
    • Further, the recovery rate improved nearly threefold from 26.5% in 2018 to 71.6% in 2019
    • The overall time taken in recovery also improved nearly three times, coming down from 4.3 years in 2018 to 1.6 years in 2019.

    2) Decriminalisation of minor offences

    • Criminal penalties including imprisonment for minor offences act as major deterrents for investors.
    • The Government of India is also working toward decriminalisation of minor offences.
    • This will significantly reduce the risk of imprisonment for actions or omissions that are not necessarily fraudulent or an outcome of mala fide intent.

    3) Other legislative measures

    • Together with the IBC, following 3 reforms suggests major and multi-dimensional effort by the government.
    • 1) The rolling out of the commercial courts.
    • 2) Commercial divisions and the Commercial Appellate Divisions Act, 2015, to allow district court-level commercial courts.
    • 3) Removal of over 1,500 obsolete and archaic laws.

    Way forward

    • There could perhaps be a look at institutionalising the introduction of a pre-packed insolvency resolution process.
    • This will also help resolve matters expeditiously, outside of the formal court system, and allow resolution even during the COVID-19 altered reality.

    Consider the question “Examine the impact of Insolvency and Bankruptcy Code (IBC) on the insolvency resolution procedure and suggest the further improvements in the IBC.”

    Conclusion

    The IBC has provided a major stimulus to ease of doing business, enhanced investor confidence, and helped encourage entrepreneurship while also providing support to MSMEs. Its further streamlining and strengthening will surely instil greater confidence in both foreign and domestic investors as they look at India as an attractive investment destination.

    B2BASICS

  • Narco Test and the Issue of Consent

    Involuntary administration of narco or lie detector tests is an “intrusion” into a person’s “mental privacy,” a Supreme Court judgment of 2010 has held.

    Try this question:

    Q.What are the ethical issues associated with the Lie-detection tests?

    Various Lie detector tests

    (1) Polygraph Test

    • A polygraph test is based on the assumption that physiological responses that are triggered when a person is lying are different from what they would be otherwise.
    • Instruments like cardio-cuffs or sensitive electrodes are attached to the person, and variables such as blood pressure, pulse, respiration, change in sweat gland activity, blood flow, etc., are measured as questions are put to them.
    • A numerical value is assigned to each response to conclude whether the person is telling the truth, is deceiving, or is uncertain.

    (2) Narcoanalysis

    • Narcoanalysis, by contrast, involves the injection of a drug, sodium pentothal, which induces a hypnotic or sedated state.
    • In such a state, the subject’s imagination is neutralized, and they are expected to divulge information that is true.
    • The drug, referred to as “truth serum” in this context, was used in larger doses as anaesthesia during surgery and is said to have been used during World War II for intelligence operations.

    Why these tests are so (in)famous?

    • Investigating agencies seek to employ these tests in the investigation, and are sometimes seen as being a “softer alternative” to torture or “third degree” to extract the truth from suspects.
    • These tests put into consideration the international norms on human rights, the right to a fair trial, and the right against self-incrimination under Article 20(3) of the Constitution.

    Legal status in India

    • In ‘Selvi & Ors vs State of Karnataka & Anr’ (2010), a Supreme Court Bench comprising CJI ruled that no lie detector tests should be administered “except on the basis of the consent of the accused”.
    • Those who volunteer must have access to a lawyer, and have the physical, emotional, and legal implications of the test explained to them by police and the lawyer, the Bench said.
    • It said that the ‘Guidelines for the Administration of Polygraph Test on an Accused’ published by the National Human Rights Commission in 2000, must be strictly followed.
    • The subject’s consent should be recorded before a judicial magistrate, the court said.

    What was the latest Judgement?

    • Involuntary administration of narco or lie detector tests is an “intrusion” into a person’s “mental privacy,” a Supreme Court judgment of 2010 has held.
    • The consequences of such tests on “individuals from weaker sections of society who are unaware of their fundamental rights and unable to afford legal advice” can be devastating.
    • It may involve future abuse, harassment and surveillance, even leakage of the video material to the Press for a “trial by media.”
    • Such tests are an affront to human dignity and liberty and have long-lasting effects.
    • “An individual’s decision to make a statement is the product of a private choice and there should be no scope for any other individual to interfere with such autonomy,” the apex court had held.

    Legal status of its outcome

    • The results of the tests cannot be considered to be “confessions”, because those in a drugged-induced state cannot exercise a choice in answering questions that are put to them.
    • However, any information or material subsequently discovered with the help of such a voluntarily-taken test can be admitted as evidence, the court said.
    • Thus, if an accused reveals the location of a murder weapon in the course of the test, and police later find the weapon at that location, the statement of the accused will not be evidence, but the weapon will be.
  • Conference on Disarmament (CD)

    India has supported the holding of negotiations on a Comprehensive Nuclear Weapons Convention at the Conference on Disarmament (CD). It reiterated its commitment to the disarmament of nuclear weapons in a step-by-step non-discriminatory process.

    List out various factors which are preventing the nuclear disarmaments amongst the nations.

    About the Conference on Disarmament (CD)

    • The CD is a multilateral disarmament forum established by the international community to negotiate arms control and disarmament agreements based at the Palais des Nations in Geneva.
    • The Conference meets annually in three separate sessions in Geneva.
    • The Conference was first established in 1979 as the Committee on Disarmament as the single multilateral disarmament negotiating forum of the international community.
    • It was renamed the Conference on Disarmament in 1984.

    Recent developments from India

    • India has not revised its key principles regarding the weapons in its arsenal.
    • Raksha Mantri has earlier hinted at a possibility of changing the No First Use (NFU) principle by declaring that ‘circumstances’ will determine the “No First Use” stance.

    India stands committed

    • India believes that nuclear disarmament can be achieved through a step-by-step process underwritten by a universal commitment and an agreed multilateral framework.
    • India remains convinced of the need for meaningful dialogue among all states possessing nuclear weapons, for building trust and confidence.
    • India also remains committed to negotiations regarding a Fissile Material Cut-off Treaty in the CD on the basis of the report of the Special Coordinator or CD/1299 which dates to March 24, 1995.

    B2BASICS

    India’s No first use doctrine

    For India, Nuclear weapons are political weapons and not weapons of war and their sole purpose is to deter the use of nuclear weapons by India’s adversaries. India has nit only established itself as a responsible nuclear state, but guided the world about how to be a responsible nuclear state through No first use policy.

    Features of India’s nuclear doctrine:

    1. Building and maintaining a credible minimum deterrent.
    2. A “No First Use” policy i.e. nuclear weapons to be used only in case of any nuclear attack on Indian territory or on Indian forces anywhere.
    3. Non use of nuclear weapons against non-nuclear weapon states.
    4. Nuclear retaliatory attacks to be authorised only by civilian political leadership through the Nuclear Command Authority.
    5. Nuclear retaliation to a first strike will be massive and designed to inflict unacceptable damage.
    6. India may retaliate with nuclear weapons to retaliate against attack  with biological or chemical weapons.
    7. Strict controls on export of nuclear and missile related materials and technologies.
    8. A commitment to goal of nuclear weapon free world.

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