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Q.1) In February 2016, Ms. Archana Ramasundaram became the first woman Director-General of

a) Central Reserve Police Force

b) Border Security Force

c) Sashastra Seema Bal

d) Central Industrial Security Force

 

Q.2) Consider the following statements about the Pangong Tso Lake which was recently in news:

1. It is a brackish water lake.
2. Spiti river drains into it.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.3) For environmental release and use in the fields of the genetically modified seeds, the clearance/approval of which of the following bodies is required?

1. The Genetic Engineering Appraisal Committee
2. The Union Ministry of Environment, Forests and Climate Change

Select the correct answer using the codes given below.

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.4) Consider the following pairs:

           <u>Physicist</u>                               <u>Major Contribution / Discovery</u>

1. Christiaan Huygens             Law of electromagnetic Induction
2. James Clerk Maxwell          Wave Theory of Light
3. Victor Francis Hess             Cosmic Radiation
4. Paul Dirac                           Theory of nuclear forces

Which of the above pairs is/are correctly matched?

a) 1, 2 and 4 only

b) 2 and 3 only

c) 1 and 4 only

d) 3 only

 

Q.5) Which of the following countries severed its relations with Taiwan and established diplomatic ties with China in June?

a) Sao Tome

b) Panama

c) Nicaragua

d) Fiji

 

Q.6) Which of the following pairs with reference to the member and portfolio held in the interim government (1946) is not correctly matched?

a) Jawahar Lal Nehru : External Affairs

b) Rajendra Prasad : Defence

c) C Rajagopalachari : Education and Arts

d) John Mathai : Industries and Supply

 

Q.7) Which among the following fundamental forces of nature operates over the shortest range

a) Gravitational force

b) Strong nuclear force

c) Weak nuclear force

d) Electromagnetic force

 

Q.8) Which of the following was not a feature introduced by the Government of India Act, 1919?

a) Dual scheme of governance

b) Communal representation

c) Bicameralism

d) Separate provincial and central budgets

 

Q.9) Which of the following is not a part of the procedure to remove a High Court judge from its office?

a) A motion signed by at least 50 Rajya Sabha members or 100 Lok Sabha members is presented to the Presiding officer of the House

b) A three member committee is constituted to investigate the charges

c) The President makes the report of this committee be laid down on the floor of the Houses

d) The motion is passed by a special majority of both the Houses and an address is made to the President for the removal of the judge

 

Q.10) One unified atomic mass unit is defined as

a) (1/12) of the mass of an atom of Carbon-12 isotope excluding the mass of electrons

b) (1/12) of the mass of an atom of Carbon-14 isotope including the mass of electrons

c) (1/12) of the mass of an atom of Carbon-12 isotope including the mass of electrons

d) (1/12) of the mass of an atom of Carbon-14 isotope excluding the mass of electrons

 

Q.11) ‘Dfc’ type of climate is found in

a) Tamil Nadu Coast

b) Arunachal Pradesh

c) Kerala and Karnataka coast

d) Uttar Pradesh and Bihar

 

Q.12) Which of the following states has become the first state in the country to have a cyber-police station in each district simultaneously?

a) Tamil Nadu

b) Gujarat

c) Kerala

d) Maharashtra

 

Q.13) Strait of Bosporus separates the continents of

a) Asia and Europe

b) Europe and North America

c) Asia and Africa

d) Africa and Europe

 

Q.14) The ruins of Vijayanagara at Hampi were brought to light in 1800 by

a) Colonel Colin Mackenzie

b) Sir John Shore

c) Andrew Fraser

d) John Marshall

 

Q.15) At which one of the following places the largest mammal found has adapted to take up its fresh water supply from the morning dew on the leaves?

a) Karang Island in Loktak Lake

b) Pirotan Island in Gulf of Kutch

c) Nalaban Island in Chilka Lake

d) Rutland Island in Andaman & Nicobar

 

Q.16) Relation between Plants, Mangroves and Halophytes is best represented by

a) two distinct concentric circles and a third non-overlapping circle

b) three distinct concentric circles

c) three distinct circles with some portion of each overlapping with some portion of other two

d) three distinct non-overlapping circles

 

Q.17) Which of the following paramilitary forces was raised as ‘Cacher Levy’ ?

a) Sashastra Seema Bal

b) Border Security Force

c) Assam Rifles

d) Central Industrial Security Force

 

Q.18) Let n be a natural number. Consider the following statements about the number (1+ square of n + fourth power of n) :

1. It is always odd.
2. It can be represented as product of two odd natural numbers.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.19) Consider the following statements:

1. Solar storms result from an accumulation of magnetic energy.
2. They can disrupt high-frequency radio communications on earth.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

 

Q.20) Which of the following is/are used in making imitation jewellery?

1. Lead
2. Chromium
3. Heptachlor

Select the correct answer using the codes given below.

a) 2 and 3 only

b) 1 only

c) 1 and 2 only

d) 1, 2 and 3

 

Q.21) Examine the Statement I and Statement II given below carefully and select the correct answer using the codes given below.

Statement I : Recent discovery of boron on Mars has bolstered the theory that the Red Planet  may have once been habitable.

Statement II : Boron gives stability to ribose which is a key ingredient of RNA.

a) Both the statements are individually true and Statement II is the correct explanation of Statement I.

b) Both the statements are individually true but Statement II is NOT the correct explanation of Statement I.

c) Statement I is true but Statement II is false

d) Statement I is false but Statement II is true

 

Q.22) Examine the Statement I and Statement II given below carefully and select the correct answer using the codes given below.

Statement I : The Palaeocene-Eocene Thermal Maximum, PETM, was the most rapid and extreme natural global warming event of last 66 million years.

Statement II : PETM lasted for about 150 thousand years.

a) Both the statements are individually true and Statement II is the correct explanation of Statement I.

b) Both the statements are individually true but Statement II is NOT the correct explanation of Statement I.

c) Statement I is true but Statement II is false

d) Statement I is false but Statement II is true

 

Q.23) Who are ‘Agariyas’?

a) metal workers of Murshidabad

b) weavers of Pochampalli

c) salt farmers of Rann of Kutch

d) tribal dancers of Niyamgiri hills

 

Q.24)  Which of the following cities has become the first city in India to be recognized as a ‘World Heritage City’?

a) Mumbai

b) Ahmedabad

c) Gwalior

d) Patan

 

Q.25) Which of the following is not a member country of the European Free Trade Association?

a) Norway

b) Switzerland

c) Iceland

d) Sweden

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Note4Student:

Government is likely to scrap public distribution scheme (PDS) system and transfer money directly to the accounts of poor beneficiaries after getting encouraging results from Haryana and Puducherry. This move has been supported as well as criticized by many economists.

 

What is PDS?

Under the PDS, central public sector undertaking Food Corporation of India (FCI) sells food grains, including wheat, rice and sugar, and kerosene through fair price shops in states and union territories. 

 

Arguments in Favour of substituting PDS grain transfers with cash?

1.PDS Prone to corruption and leakage: Proponents of substituting PDS grain transfers with cash argue that PDS is an inefficient mode of transfer of subsidies, prone to enormous leakages into the black market, and high waste in costs of transferring subsidies in the form of food transfers. They argue that replacing food with direct cash transfers would greatly reduce corruption and leakages.

2.Better targeting: It would enable the poor to access goods currently denied them by a PDS beset by corruption.

3.More Choice for consumers: It would enable people to buy better quality food of their choice from the open market and not be restricted to items sold in the PDS, which are often inferior in quality and limited in range.

4.Will Reduce wastage: Providing subsidies directly to the poor, it is further argued, would both bypass brokers as well as reduce the waste and holding costs of storing grains in government silos. The amount of grain actually required for India’s buffer stock needs could be held in better-quality warehouses, eliminating waste and rotting.

5.Will reduce fiscal deficit: Cash transfers would help reduce fiscal deficit by curbing expenditures earmarked for the PDS that are siphoned off through corruption, as well as avoiding substantially higher costs of transferring food rather than cash.

 

Arguments against Arguments in Favour of substituting PDS grain transfers with cash?

Not leakage proof: it is problematic to assume that cash transfers would in themselves bring about drastic reductions in corruption and leakages in welfare programmes, as there is nothing intrinsic to cash transfers which renders them less vulnerable to leakages. Irregularities are empirically found to be high in existing cash transfer programmes. Cash transfers of old-age pensions are at least as notorious for corruption and leakages as the PDS.

PDS performing better: Studies confirm that many states have been able to reform PDS and significantly reduce leakages, as much as some states have reformed pension transfers. Clearly, the difference between the corruption or probity of delivery of welfare programmes is not dependent on whether cash or food is delivered, but on political and administrative will and capacities, and public vigilance and organization.

Misuse of Cash: It is also possible for people to spend cash transfers not on more nutritious food, as proponents suggest, but instead on non-food items, which would decrease the amount of household money left for buying food. There are significant gendered differences of choice here. Research confirms that culturally decisions relating to cash in households tend to be made by men, who may or may not spend the money on food. Decisions relating to food are made by women in almost all cultures, and therefore food rather than cash in a household is more likely to end up as food in a child’s stomach.

Weak Banking Infrastructure: There are also worries about how genuinely inclusive of people in remote rural regions is India’s banking system. Fair price shops exist in three of every four villages, and are therefore generally accessible. According to one survey, average distance to the nearest bank branch is between 6.5km to 10km. Distances would be much longer in remote regions, entailing high additional costs of transport and time.

PDS a shield against Inflation: Another advantage of PDS over cash transfers from the perspective of the poor is that PDS supplies rations at a constant price, irrespective of the fluctuations in market prices. This therefore provides a shield against inflation, a benefit that cash transfers cannot match.

PDS ensures stable income for Farmer’s:  it is a mistake to view PDS only as a means to transfer subsidies to poor households. PDS costs need to be measured against its other goals as well. PDS requires the government to procure food from farmers. The government builds up stocks of grains which are also useful for price stabilization. Indeed, the guarantee of minimum support price purchase by the government for wheat and rice is the most important instrument for the protection of farmers’ income in India, and this would become unfeasible if the government could not offload a lot of this grain back through the PDS.

Cash Transfer leading to exclusion: In areas where pilot programme has been launched There were issues in transfers, as results show as high as 50 per cent of those entitled did not receive the full or part cash transfer, especially due to issues in linking of bank accounts with Aadhaar and ration cards. 

 

Way Forward:

1. Certainly, DBT is a novel idea and it could certainly reduce leakages and corruption of PDS system has proven its record in LPG case where Government saved rs 14000 crore due to better targeting and elimination of ghost beneficiaries
2. However, DBT in food subsidy is an idea which has many flaws as mentioned above. PDS system itself is flawed and it needs to be eliminated.
3. Therefore, instead of cash transfer Government should give food coupons as this will solve the problem of misuse of cash for buying non-food things and it will also give poor people choice to buy food from the retailer of their choice. Food coupon amount should be periodically revised so that it takes into account the current inflation. Thus what we require is a system which is somewhere in between the present inefficient PDS system and the proposed DBT system.

 

Questions:

(Q) Should PDS scheme be replaced by Direct benefit transfer in Food Subsidy. Give Pros and cons.

(Q.) Replacing PDS with cash transfers would, in effect, gradually erode and eventually dismantle this obligation of the government, with an adverse impact on an already precarious agriculture and farmer protection. Critically comment

 

Note4Students

1. Section 124A was challenged in the Supreme Court as unconstitutional. In its celebrated judgment in the case of Kedarnath vs State of Bihar, the Supreme Court explained the scope of sedition law. It ruled that “vigorous words in writing and very strong criticism of measures of government or acts of public officials, would be outside the scope of Section 124A”.It has been in news very frequently due to its frequent misuse.A large number of op-eds have been written on this issue in recent years.UPSC also asked a similar kind of question (Hate speech) in UPSC mains 2014. Therefore it’s necessary to prepare both arguments in favour and against Sedition law.

Introduction

1. The section 124A of Indian Penal Code is a pre-independence provision which covers sedition charges against government. 
2. Section 124A of the IPC defines sedition and says:
   • whoever by words either spoken or written or by signs or by visible representation or otherwise brings or attempts to bring into hatred or contempt, the government established by law; or
   • Whoever by the above means excites or attempts to excite disaffection towards the government established by law, has committed the offence of sedition.

 

1. Figures of the National Crime Records Bureau reveal that in the two years preceding the Jawaharlal Nehru University case, there were a total of 77 sedition cases, of which only one resulted in conviction.
2. Human rights activists and supporters of free speech argued that this section is draconian and should be got rid of.

 

Arguments in favour of Sedition Law

 

1. In 1962, the Supreme Court in Kedar Nath Singh vs State of Bihar upheld Section 124A and held that it struck a “correct balance” between fundamental rights and the need for public order.
2. The court has reduced the scope of Sedition law to only those cases where there is incitement to imminent violence towards overthrow of the state. 
3. The Court held that it is not mere against government of the day but the institutions as symbol of state. 

 

Argument against section 124A

1. It stifles the democratic right of people to criticize the government.
2. In the Menaka Gandhi case, the Supreme Court had held that  freedom of speech and expression is not confined to geographical limitations and it carries with it the right of a citizen to gather information and to exchange thought with others not only in India but abroad too.
3. Thus, criticism against the government policies and decisions within a reasonable limit that does not incite people to rebel is consistent with freedom of speech and expression.
4. In the Kedarnath Singh case, the Supreme Court has warned against the arbitrary use of sedition law because such arbitrary use would violate the freedom of speech and expression guaranteed by the Constitution.
5. The police might not have the “requisite” training to understand the consequences of imposing such a “stringent” provision.
6. It has been used arbitrarily to curb dissent. In many cases the main targets have been writers, journalists, activists who question government policy and projects, and political dissenters.
7. The draconian nature of this law—non-bailable, non-cognisable and punishment that can extend for life, has a strong deterrent effect on dissent even if it is not used.
8. The press should be protected so that it could bare the secrets of government and inform the people. Only a free and unrestrained press can effectively expose deception in government
9. Legislation exists to deal with unlawful activities and armed movements. There is no need to criminalize words spoken or written.

 

Way Forward

1. India of the 21st century does not require a law used by the colonial government to suppress India’s voice.
2. The guidelines of the SC must be incorporated in Section 124A as well by amendment to IPC so that any ambiguity is removed.
3. This will ensure that section 124 A of IPC strikes a balance between security and smooth functioning of state with the fundamental right of freedom of speech and expression.

 

Questions

1. What do understand by sedition? Should it be deleted? Critically comment
2. “The arbitrariness of the sedition charges imposed on various situations makes for a test case on the validity of Section 124A” Critically examine

Note4Students:

India has been facing a bad loan Problem from last few Years. According to latest report of RBI, Stressed assets, which include non-performing assets (NPAs) and restructured loans, form some 12% of the total loans in Indian banking now. A question on NPA is expected from last 2 years. Probably this is the year where UPSC will ask question on NPA in Mains.

Context

According to RBI’s recent data The pile of bad loans, or stressed assets, is close to Rs10 lakh crore($154 billion) now, which is more than the GDP of at least 137 countries. And what’s more, it is only growing.

Stressed assets, which include non-performing assets (NPAs) and restructured loans, form some 12% of the total loans in Indian banking now.

 

What is NPA?

1. The assets of the banks which don’t perform (that is – don’t bring any return) are called Non Performing Assets (NPA) or bad loans. Bank’s assets are the loans and advances given to customers. If customers don’t pay either interest or part of principal or both, the loan turns into bad loan.
2. According to RBI, terms loans on which interest or instalment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset.
3. However, in terms of Agriculture / Farm Loans; the NPA is defined as under: For short duration crop agriculture loans such as paddy, Jowar, Bajra etc. if the loan (installment / interest) is not paid for 2 crop seasons, it would be termed as a NPA. For Long Duration Crops, the above would be 1 Crop season from the due date.

source

 

Impact of NPA on Economy

The problem of NPAs in the Indian banking system is one of the foremost and the most formidable problems that had impact the entire banking system. Higher NPA leads to following adverse impact on Economy:

1. Depositors do not get rightful returns and many times may lose uninsured deposits. Banks may begin charging higher interest rates on some products to compensate Non-performing loan losses
2. Bank shareholders are adversely affected
3. Bad loans imply redirecting of funds from good projects to bad ones. Hence, the economy suffers due to loss of good projects and failure of bad investments
4. When bank do not get loan repayment or interest payments, liquidity problems may ensue.

Reasons for the rise in NPA in recent years

1. GDP slowdown: Between early 2000’s and 2008 Indian economy were in the boom phase. During this period Banks especially Public sector banks lent extensively to corporates. However, the profits of most of the corporate dwindled due to slowdown in the global and domestic economy, bans in mining projects, delays in environmental related permits ,Land acquisition hurdles and volatility in prices of raw material. This has adversely affected their ability to pay back loans and is the most important reason behind increase in NPA of public sector banks.
2. Relaxed lending Norms: One of the main reasons of rising NPA was the relaxed lending norms especially for corporate honchos when their financial status and credit rating was not analyzed properly. Also, to face competition banks were hugely selling unsecured loans .
3. Priority Sector Lending: There is a myth that main reason for rise in NPA in Public sector banks was Priority sector lending as according to the findings of Standing Committee on Finance , NPAs in the corporate sector are far higher than those in the priority or agriculture sector. However, even if PSL is not the main cause but it is still a cause for rising NPA which can be seen from the fact that As per the latest estimates by the SBI, education loans constitute 20% of its NPAs.
4. The Lack of Bankruptcy code in India and sluggish legal system makes it difficult for banks to recover these loans from both corporate and noncorporate.

 

Other factors

1. Banks did not conducted adequate contingency planning, especially for mitigating project risk. They did not factor eventualities like failure of gas projects to ensure supply of gas or failure of land acquisition process for highways.
2. Restructuring of loan facility was extended to companies that were facing larger problems of over-leverage & inadequate profitability. This problem was more in the Public sector banks.
3. Companies with dwindling debt repayment capacity were raising more & more debt from the system.

Why most NPA in Public sector?

1. Five sectors Textile, aviation, mining, Infrastructure contributes to most of the NPA, since most of the loan given in these sector are by PSB, they account for most of the NPA.
2. Public Sector banks provide around 80% of the credit to industries and it is this part of the credit distribution that forms a great chunk of NPA. Last year, when kingfisher was marred in financial crisis, SBI provided it huge amount of loan which it is not able to recover from it.
3. Less Professional management
4. Political Pressure and interference forces PSB to lend to not so commercially sounds project.

Steps taken by RBI and Government in last few years to curb NPA

• 1. Government has launched Mission Indradhanush to make the working of public sector bank more transparent and professional in order to curb the menace of NPA in future.
  2. Government has also proposed to introduce Bankruptcy code which will make it easier for banks to Recover the loans from the debtors.
  3. RBI introduced number of measures in last few years which include:
  4. Tightening the Corporate Debt Restructuring (CDR) mechanism,
  5. Setting up a Joint Lenders’ Forum, prodding banks to disclose the real picture of bad loans, asking them to increase provisioning for stressed assets,
  6. Introducing a 5:25 scheme where loans are to be amortized over 25 years with refinancing option after every five years, and

 

• Empowering them to take majority control in defaulting companies under the Strategic Debt Restructuring (SDR) scheme.
• Amendment in banking law to give RBI more powers: The Banking Regulation Act may be amended to give RBI more powers to monitor bank accounts of big defaulters. The amendment in the banking law will enable setting up of a committee to oversee companies that have been the biggest defaulters of loans.
• Stringent NPA recovery rules: The government has over the years enacted and tweaked stringent rules to recover assets of defaulters. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act or Sarfaesi Act of 2002 was amended in 2016 as it took banks years to recover the assets.

How to curb the menace of NPA?

#1. Short Term measures

1. Review of NPA’S/Restructured advances- We need to assess the viability case by case. Viable accounts need to be given more finance for turnaround and unviable accounts should either be given to Asset Reconstruction Company or Management/ownership restructuring or permitting banks to take over the units.
2. Bankruptcy code should be passed as soon as possible. Bankruptcy code will make it easier for banks to recover loans from unviable enterprises.
3. Government should establish ARC with equity contribution from the government and the Reserve Bank of India (RBI). The established ARC should take the tumor (of non-performing assets or NPAs) out” of the banking system. An ARC acquires bad loans from banks and financial institutions, usually at a discount, and works to recover them through a variety of measures, including sale of assets or a turnaround steered by professional management. Relieved of their NPA burden, the banks can focus on their core activity of lending.

#2. Long term Measures

1. Improving credit risk management– This includes credit appraisal, credit monitoring, and efficient system of fixing accountability and analyzing trends in group leverage to which the borrowing firm belongs to
2. Sources/structure of equity capital– Banks need to see that promoter’s contribution is funded through equity and not debt.
3. Banks should conduct necessary sensitivity analysis and contingency planning while appraising the projects and it should built adequate safeguards against such external factors.
4. Strengthen credit monitoring– Develop an early warning mechanism and comprehensive MIS(Management information system) can play an important role in it.MIS must enable timely detection of problem accounts, flag early signs of delinquencies and facilitate timely information to management on these aspects.
5. Enforce accountability- Till now lower ring officials considered accountable even though loaning decisions are taken at higher level. Thus sanction official should also share the burden of responsibility.
6. Restructured accounts should treated as non performing and technical write offs where Banks remove NPA’S from their balance sheets Permanently should be dispensed with.
7. Address corporate governance issues in PSB- This includes explicit fit and proper criteria for appointment of top executives and instituting system of an open market wide search for Chairman.

Questions:

 

Q.1) Non-performing assets, restructured loans and written-off assets — collectively called ‘stressed assets’ — have become a major challenge to the country’s banking system. To combat these, what has government done? Will these measures be effective? Examine.

Q.2) The problem of non-performing assets (NPAs) in the Indian banking system is said to be big and might affect economic growth of the country. What are the approaches that RBI and government are adopting to clean the banking system of NPAs? Examine.

 

 

Note4Students

Bankruptcy code addresses the larger issue of ease of doing business. Economic survey 2016 talked about chakravyuha problem of Indian business ecosystem. In this context bankruptcy code is important topic to examine.

Introduction

1. Hitherto India was lacking the legal and institutional machinery for dealing with debt defaults as per the global standards.
2. The recovery proceedings by creditors, either through the Contract Act or through special laws such as the Recovery of Debts due to Banks and Financial Institutions Act, 1993 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, has not had desired outcomes.
3. Similarly, action through the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and the winding up provisions of the Companies Act, 1956 have neither been able to aid recovery for lenders nor restructuring of firms.
4. Laws dealing with individual insolvency, the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920, were almost a century old. This has hampered the confidence of the lender and development of the credit markets in India. Resultantly, credit by banks is the largest component of the credit market in India and corporate bond market has not yet developed to the desired level.

Analysis

Highlights of the Code

1. The Code creates time-bound processes for insolvency resolution of companies and individuals.  These processes will be completed within 180 days.  If insolvency cannot be resolved, the assets of the borrowers may be sold to repay creditors.
2. The resolution processes will be conducted by licensed insolvency professionals (IPs).  These IPs will be members of insolvency professional agencies (IPAs).  IPAs will also furnish performance bonds equal to the assets of a company under insolvency resolution.
3. Information utilities (IUs) will be established to collect, collate and disseminate financial information to facilitate insolvency resolution.
4. The National Company Law Tribunal (NCLT) will adjudicate insolvency resolution for companies.  The Debt Recovery Tribunal (DRT) will adjudicate insolvency resolution for individuals.
5. The Insolvency and Bankruptcy Board of India will be set up to regulate functioning of IPs, IPAs and IUs.

Positive Aspects

1. The new law aims to consolidate the laws relating to insolvency of companies and limited liability entities (including limited liability partnerships and other entities with limited liability), unlimited liability partnerships and individuals, Presently contained in a number of legislations, into a single legislation and provide for their reorganization and resolution in a time bound manner for maximization of value of their assets.
2. Such consolidation will provide for a greater clarity in law and facilitate the application of consistent and coherent provisions to different stakeholders affected by business failure or inability to pay debt.
3. This law will thus promote entrepreneurship, availability of credit and balance the interest of all stakeholders.
4. It is true that some business ventures will always fail, but such failures will be handled rapidly and swiftly. Entrepreneurs and lenders will be able to move on, instead of being bogged down with decisions taken in the past.
5. The Code empowers the operational creditors (workmen, suppliers etc.) also to initiate the insolvency resolution process upon non-payment of dues. In order to develop the credit market in India, in case of liquidation, financial debts owed to unsecured creditors have been kept above the Government’s dues in the list of priorities (waterfall).
6. Facilitating early resolution and exit is as important as facilitating investment.
7. The essential idea of the new law is that when a corporate entity defaults on its debt, control shifts from the shareholders/promoters to a committee of creditors, who have 180 days (extendable by 90 days in deserving cases) to evaluate proposals from various players about resuscitating the company or taking it into liquidation.
8. When decisions are taken in a time-bound manner, there is a greater chance that the corporate entity can be saved as a going concern, and the productive resources of the economy (labour and capital) can be put to the best use. This is in complete departure from SICA regime where there were delays leading to destruction of the value of the firm.
9. The Code separates commercial aspects of the insolvency proceedings from judicial aspects.
10. While Insolvency Professionals (IPs) will deal with commercial aspects such as management of the affairs of the corporate debtor, facilitating formation of committee of creditors, organising their meetings, examination of the resolution plan, etc.,
11. judicial issues will be handled by proposed Adjudicating Authorities (National Company Law Tribunal / Debt Recovery Tribunal). One more important institution created under the Code is the ‘Information Utility’ which would store financial information and data and terms of lending in electronic databases. This would eliminate delays and disputes about facts when default does take place.
12. The Code also provides a fast track insolvency resolution process for corporates and LLPs. This will be an enabler for start-ups and small and medium enterprises (SMEs) to complete the resolution process in 90 days (extendable to 45 days in deserving cases).
13. The Code also addresses the important issue relating to cross border insolvency by providing the enabling mechanism on the subject. The Government, at an appropriate time, will come out with a detailed framework for cross border insolvency.

Key Issues

1. In relation to corporate persons, the Code looks to wrap up the game in 180 days.
2. It warrants a notice of dispute to be issued followed by a response period of 10 days for the corporate debtor, failing which the creditor is entitled to file an insolvency application before the National Company Law Tribunal (NCLT).
3. Within 14 days from filing, the application must be admitted. Upon admission, the moratorium period (freezing of bank accounts, prohibition on foreclosures in relation to financial debts, etc.) commences.
4. At this stage, the existing management of the company loses complete control and all powers vest with an interim resolution professional, who has merely 30 days to put together all the relevant information and call for a meeting of the financial creditors.
5. Once the financial creditors meet, they must appoint a resolution professional who will put together an information memorandum of the company that forms the basis for a resolution applicant to propose a resolution plan for the company.
6. The Code fails to define a resolution applicant. All such resolution plans are placed before the financial creditors. When at least 75% of the financial creditors approve, the plan is implemented by way of an order by the NCLT. If the financial creditors fail to arrive at a consensus, the default plan is to liquidate the company.
7. The Code rides substantially on the unquestionable word of the creditors. Neither does the corporate debtor have an opportunity to put forth his/her case nor is there any scope of discretion provided to the adjudicating authority itself.
8. At various stages — of admission of the insolvency proceedings, of appointing the insolvency professional, of finalising the resolution plan — the Code fails to provide any opportunity to the corporate debtor to make a representation, at the very least.
9. In this manner, the Code ignores rights enshrined in the Constitution. (In Maneka Gandhi v. Union of India, 1978, the Supreme Court observed that it is the duty of the authority to give reasonable opportunity to be heard, even where there is no specific provision for showing cause when a proposed action affects the rights of the individual.)
10. The Code is also deficient in providing a yardstick for the qualification of the interim and of the final insolvency resolution professionals.It allows for any person to access the information memorandum put together by the insolvency professional without restricting competitors or imposing any confidentiality obligations.
11. This allows for any person to access proprietary information of the corporate debtor and misuse the same, given that there is no law protecting confidentiality and vitiates the fundamental right to business under Article 19(1)(g).
12. The Code prohibits withdrawal of the application once the same has been admitted.
13. This means that there is no scope whatsoever for settlement.
14. This is despite the recent ruling of the Supreme Court in Lokhandwala Kataria Construction (P) Ltd. V. Nisus Finance and Investment Managers LLP (2017), wherein a settlement proposal was taken on record and the appeal was disposed of. However, this cannot be held as a precedent.
15. Further, the unrestricted access of any person without mandatory contractual obligations in relation to confidentiality vitiates the fundamental right to business under Article 19(1)(g).
16. Time-bound insolvency resolution will require establishment of several new entities.  Also, given the pendency and disposal rate of DRTs, their current capacity may be inadequate to take up the additional role.
17. IPAs, regulated by the Board, will be created for regulating the functioning of IPs.  This approach of having regulated entities further regulate professionals may be contrary to the current practice of regulating licensed professionals.  Further, requiring a high value of performance bond may deter the formation of IPAs. 
18. The Code provides an order of priority to distribute assets during liquidation.  It is unclear why: (i) secured creditors will receive their entire outstanding amount, rather than up to their collateral value, (ii) unsecured creditors have priority over trade creditors, and (iii) government dues will be repaid after unsecured creditors.
19. The Code provides for the creation of multiple IUs. However, it does not specify that full information about a company will be accessible through a single query from any IU.  This may lead to financial information being scattered across these IUs.
20. The Code creates an Insolvency and Bankruptcy Fund.  However, it does not specify the manner in which the Fund will be used.

Conclusion

The Insolvency and Bankruptcy Code is

a comprehensive and systemic reform, which will give a quantum leap to the functioning of the credit market. It would take India from among relatively weak insolvency regimes to becoming one of the world’s best insolvency regimes. It lays the foundations for the development of the corporate bond market, which would finance the infrastructure projects of the future. The passing of this Code and implementation of the same will give a big boost to ease of doing business in India.

Question

Q.) “Bankruptcy code is a greater step towards the business friendly India.” Comment

Q.) What are the features of the bankruptcy code. Do think certain provisions undermine the fundamental right to carry out any profession

Source

The Hindu

PRS

Note4Students

1. Foreign investments are inevitable to expand our infra-structure projects. BIT should offer certain degree of protection to investor as well it should actualise our developmental goals. In this context, model BIT deserves greater analysis to understand various features . This topic is important while considering a host of issues like ease of doing business.

Introduction

1. The revised Indian model text for Bilateral Investment Treaty (BIT) will replace the existing Indian Model BIT.  The revised model BIT will be used for re-negotiation of existing BITs and negotiation of future BITs and investment chapters in Comprehensive Economic Cooperation Agreements (CECAs)/ Comprehensive Economic Partnership Agreements (CEPAs) / Free Trade Agreements (FTAs).

Analysis

Why the new Model BIT?

1. Main reason for bringing the Model BIT was the constant suing of the country by foreign firms.
2. India was one of the most sued countries during 2015 and 2016.
3. According to UNCTAD- the international institution that tracks global investment trends; around 17 investor-state arbitrations are filed against the country launched by foreign investors by the end of 2015.
4. The flooding of arbitrations including that of the Sistema, Vodafone, Children Investment Fund etc. tempted the policy makers to reframe the BITs.
5. The government thus has modified the existing 1993 BIT framework and brought out the 2015 Model BIT. The move is important as it will help the country to make its treaty more specific in international arbitrations. The textual consistency of a countries’ BIT determines its success in BIT negotiations and disputes.

Important features of Model Bilateral Investment Treaty

 

Enterprise based definition of investment instead of asset based definition

1. The Model has adopted an ‘enterprise-based’ definition of investment that under which investment is treated as the one made by an enterprise incorporated in the host state.
2. Under the earlier ‘asset based definition’ of investment included intellectual property and other assets that whereas these assets are not considered as assets under the new definition.
3. The objective of adopting enterprise-based approach
4. is to narrow the scope of protected investments and reduce the potential liability of the state under Investor-state dispute settlement (ISDS) claims.
5. Asset based definition considers every kind of asset – both movable and immovable as investment and gives protection under treaties, though their contribution to national economic development is meagre.

 

Exclusion of MFN treatment

1. The most important feature of the amended model is that it dropped the Most Favoured Nation (MFN) status previously included.
   1. Purpose of the MFN clause for the investor’s angel is to ensure that a say, a US investor is not discriminated compared to say, a Japanese investor.
2. In recent years, complaining foreign investors sued India arguing that they have to get the same beneficial treatment given to companies from other countries. This was happened in the case of White Industries. The White Industries case is pointed as the main factor that produced the deletion of the MFN clause.

 

Full Protection and Security (FPS):

1. In the context of the Model, FPS means obligations only relating to physical security of investors and to investments.

 

State government as stake holders:

1. Actions of the state Governments are included under the Model BIT.

 

Fair and equitable treatment (FET)

1. The Model BIT links Fair and Equitable Treatment to international laws.
2. This is aimed to counter a broad interpretation and risk misuse. Here, customary international law, which is built in state practice, gives a minimum standard of protection to investors.
3. Any potential violation listed in the provisions of denial of justice, breach of due process etc, requires a violation of customary international law for a claim to be justified.
4. When the Model BIT linked FET to international law, it gives more scope for government and regulators.

 

Expropriation

1. Expropriation means nationalization of assets of foreign companies.
2. As in other BITs, the Model BIT provides that the State cannot nationalise or expropriate an Investment or take measures equivalent to expropriation,
3. except “for reasons of public purpose” in accordance with the procedure established by law and on payment of adequate compensation.
4. But it gives certain exemptions. Here, the Model BIT says that, any measure by a judicial body aiming to protect public interest will be outside the purview of expropriation. Similarly, non-discriminatory regulatory measures were also excluded.

 

Non-Discriminatory treatment

1. The Model BIT includes a new clause on non-discriminatory treatment for compensation of losses. As peer the clause, investors can avail non-discriminatory just compensation in circumstances like armed conflict, natural disasters and in the state of national emergency.

 

Provision for transparency

1. The Model BIT incorporates a clause for transparency, requiring the Parties (government and regulators) to ensure that all the laws, regulations, procedures and administrative rulings regarding matters covered in the BIT are published or are available for interested persons to get acquainted with them. The clause thus ensures clarity of laws and policies for the investors.

 

Corporate Social Responsibility 

1. The Model BIT mandates foreign investors to voluntarily adopt internationally recognized standards of corporate social responsibility.

 

Conditions for initiating arbitrations at international arbitrations

1. The Model BIT stipulates that the aggrieved investor should use all local remedies as well as negotiations and consultations initiating arbitrations against the host State. Investor can use outside remedies only five years after resorting to all domestic arrangements.

 

The model BIT approved by the cabinet excludes matters relating to taxation.

The model Bill thus tries to balance protection to the investor with state regulations. More importantly it was configured in the context of excess legal arbitration against the state. What is more important is to renegotiate with the partner countries and attract foreign investment in the context of the change.

Criticism

Reduced Scope of Protection

• 1. The Draft Model BIT has limited the scope of protection under the BIT by introducing an ‘enterprise’ based definition of ‘Investment’: only enterprises constituted in India that have ‘real and substantial business operations’ in India and are owned or controlled by the Investor qualify as Investment for the purposes of the treaty.
  2. The enterprise will be considered owned by the Investor only if more than 50% of the capital is held by the investor. This definition excludes all minority investments unless they are controlled by the investor through voting agreements or any other agreements of similar nature.
  3. The definition of “investment” in the Draft Model BIT is restrictive. Besides excluding Indian holding companies and foreign portfolio investments from the definition of “investment”, it also sweeps out intangible rights like goodwill, brand value, investments in government debt and public sector undertakings, in addition to orders or judgments of any judicial, regulatory, administrative or arbitral authority.

Narrow Fair and Equitable Protection

1. The Draft Model BIT restricts the protection under fair and equitable treatment to only excessively qualified measures such as “un-remedied and egregious violations of due process”, “denial of justice” or “manifestly abusive treatment involving continuous, unjustified and outrageous coercion or harassment”.
2. Such narrow formulation of this standard takes away a wide range of procedural and substantive protection to the investors and their investment, like legitimate expectations which have otherwise been covered under this standard of protection under almost all BITs, notwithstanding certain variations among texts of different BITs.

De-Levelling the Playing Field

1. The ‘Most Favored Nations’ clause, which has been traditionally considered to be extremely significant in economic treaties, guarantees the investors of a non-discriminatory treatment vis-à-vis investors of other countries.
2. However, in its endeavor to restrict the rights of the investors, the Draft Model BIT completely wipes out this clause. By omission of such cardinal protection, it appears that India is not serious in granting protection to the Investors but only wants to protect itself from a potential fate such as in the White Industries’ case, in which India had to pay the Australian investor over US$ 8 million on account of inordinate delay in Indian courts to enforce the award passed in a commercial arbitration.
3. The protection of national treatment, which ensures that the investors are not discriminated vis-à-vis domestic investors, has been diluted to exclude regional or local government measures.
4. Thus, a foreign investor cannot complain about a state government’s regulatory measure favoring local investment, under the BIT, even if it is for protectionist purposes.

Arbitration

1. The Draft Model BIT departs from the practice followed in international arbitration disputes by taking away the authority of the Arbitral Tribunal to review the Host State’s determination of whether an expropriatory measure was taken for a public purpose or in compliance with its law or not.
2. While the requirement of exhaustion of local remedies is in consonance with the position under customary international law, considering the state of Indian judicial system it is an unattractive and unfair proposition for foreign investors to be subjected to lengthy and unending court proceedings in India.

Conclusion

The new Indian Model BIT text will provide appropriate protection to foreign investors in India and Indian investors in the foreign country, in the light of relevant international precedents and practices, while maintaining a balance between the investor’s rights and the Government obligations.

Questions:

India was one of the most sued countries in 2015. Will the country’s new model bilateral investment treaty attract and safeguard foreign investment more effectively?

Note4Students

There has been an increasing demand from various middle castes for reservation. Reservation is an important topic which is in news for the fact that reservation policy should be reviewed. Seeing the current trend, topics which are in news from quite a long time are also important. A probable question could be expected on the topic.

Context

The people from various middle castes like Patels in Gujarat, Jats in Haryana, Marathis in Maharashtra and Kapus in Andhra Pradesh are demanding for reservation. This is an emerging trend where we are witnessing many dominant and Landholding castes asking for backward reservation.

Reasons for this phenomenon

1. Farmer’s distress-There is tremendous amount of Farmer distress in Countryside in last few years due to agrarian crisis. Since most of these communities are landed agrarian caste, they are facing the brunt of agriculture slowdown. This might have contributed to the recent demand of Marathas and Patidars (also known as Patels) to be included in the other backward classes (OBC) category so that they could shift away from agriculture.
2. Crippled urban economy-Due to less number of jobs created in the economy, dominant castes who are turning away from agriculture have very less opportunities to get job in private sector and thus only option left for them is government jobs, however there general status is making the competition tough for them. Therefore they are asking for reservation.
3. Resentment against other OBC communities-Due to social, economic and political disparity between these groups and the groups who are already OBCs, these castes want them to be given OBC status.
4. Successful quota system: Due to reservation the representation of OBCs in government jobs has increased significantly in last few years which has made these castes envy of these other OBC community and therefore motivated them to demand for reservation.
5. Political support-Most of this dominant caste are electorally and politically very powerful in that state, and they get support from opposition parties for vote bank politics.

Will giving reservations to these castes solve the problem?

1. Mere inclusion in OBC list will not address structural deficiencies in the caste system and the societal hold it enjoys. This will lead to demand for reservation by more castes.
2. Even in OBC list these castes will have to face stiff competition and not to mention opposition from other OBC castes, resistance among higher castes. Without education, mere inclusion will just give short term benefits.
3. There also arises the problem of correct evaluation and inclusion of deserving castes as to see who are the real people who deserve to be benefited from the reservation policy of the government.

Way forward

1. The whole idea of reservation was to provide for substantive equality, i.e., to make the condition of those who were historically disadvantaged better so that they can lead a good life. But, with time, the rich and privileged took more benefits than those who needed.
2. At a time, when there is a demand for reservation from dominant caste, India needs to ensure that it creates a better version of reservation which includes the poor and backward and excludes rich and dominating sections.
3. Before, extending reservation to more groups, the entire reservation policy needs to be revisited. These efforts should be coupled with a vigorous national effort to provide opportunities to the disadvantaged.

Conclusion

It is high time that we need to rethink our reservation policies. The radical rethinking on reservation should aim at:

1. Excluding the entire creamy layer from reservation.
2. Developing the capabilities of the deprived and excluded beyond offering them admission to higher education or jobs on a platter.
3. India must address the challenge of reservations honestly, fairly and innovatively by creating opportunities for all disadvantaged children. It must look for some other comprehensive criteria for reservation in short term and take a call to end reservation policy in a decade or two very well in advance.

Sources

http://indianexpress.com/article/opinion/columns/dominant-castes-resent-reservations-backward-groups-havent-fully-benefited-2872075/

http://www.business-standard.com/article/economy-policy/why-dominant-castes-want-other-backward-classes-status-115102801691_1.html

http://awaremonk.com/dominant-castes-are-asking-for-reservations-today-do-you-think-inclusion-of-their-castes-in-obc-list-will-help-address-their-problems

https://counterview.org/2016/06/24/demand-for-quota-by-dominant-castes-how-about-reservation-in-the-occupation-of-sweeping/

Question

Q) While on one hand, some castes want reservations to be abolished, some of the dominant castes are asking for reservations today. Do you think inclusion of their castes in OBC list will help address their problems? Critically examine.

Q) What are the reasons for increasingly demand by the dominant castes for demand for reservation? Do you think India should reexamine its reservation policy which has become too old. Give arguments in support of your answer.

Note4Students

The Mental Healthcare Bill aims to provide for the right to better healthcare for mentally ill patients and decriminalises suicide. It is important to know its provision and the challenges India faces in providing better mental health care.

Introduction

The Parliament has passed the Mental Healthcare Bill, 2016 that decriminalizes suicide attempt by mentally ill people and guarantees the right to better healthcare for people with mental illness.

What is mental illness?

“Mental illness” as a substantial disorder of thinking, mood, perception, orientation or memory that grossly impairs judgment, behaviour, capacity to recognise reality or ability to meet the ordinary demands of life.

As per the National Mental Health Survey 2015-16 conducted by NIMHANS, 5.2% of the Indian adult population suffers from depression in some form or the other.

Key Features of Bill

Rights of persons with mental illness:

1. It gives every person right to access mental healthcare from services operated or funded by the government. It also includes good quality, easy and affordable access to services.
2. It also provides right to equality of treatment, protect such persons from inhuman treatment, access to free legal services, medical records and right to complain in case of deficiencies in provisions.
3. It also includes mental conditions associated with the abuse of alcohol and drugs.
4. It assures free treatment for homeless or people Below Poverty Line, even if they do not possess a BPL card

Right to confidentiality: A person with mental illness shall have the right to confidentiality in respect of his mental health. No information regarding the person can be released to the media without his consent.

Advance Directive: It empowers a mentally-ill person to have the right to make an advance directive that explains how they want to be treated for the requisite illness and nominate their representative.

Mental Health Establishments:

1. Every mental health establishment must register with the respective Central or State Mental Health Authority.
2. For registration, the concerned establishment must fulfill different criteria as mentioned in the Bill.
3. Procedure and process: It also outlines the procedure and process for admission, treatment and subsequent discharge of mentally ill persons.
4. Community based treatment: It focuses on community based treatment and special provisions for women and health.

Mental Health Review Commission and Board:

• 1. It will be quasi-judicial body responsible for reviewing procedure for making advance directives.
  2. It will advise the government on the protection of rights of mentally ill persons’. It will constitute Mental Health Review Boards in states’ districts will help of state governments.

Decriminalizing suicide:

1. It effectively decriminalizes suicide attempt under the section 309 IPC(attempt to commit suicide) by mentally ill persons by making it non-punishable

Prohibits electro-convulsive therapy:

• 1. It prohibits the use of electroconvulsive therapy (ECT) to mentally ill adults without the use of muscle relaxants and anesthesia

Challenges

1. India urgently needs to make a transition from old-fashioned approaches to providing care for those suffering from mental illnesses. Something that China, for example, has achieved through state-led policy reform.
2. Lack of professionals
3. India has ratio of 0.3 psychiatrists for 100,000 people (with marginally higher numbers taking independent private practitioners into account), compared to China’s 1.7.
4. Lack of availability of trained clinical psychologists and psychiatric social workers.
5. The National Mental Health Programme has not been sufficiently funded within the health budget; neither has capability been built in most States to absorb the meagre allocation.

Criticism

1. Global Burden of Disease Study shows that in 2013, 50% of all disease burden in India was caused by non-communicable diseases, while mental disorders accounted for about 6% of the total disease burden.
2. There are only 43 government-run mental hospitals across all of India to provide services to more than 70 million people living with mental disorders.
3. At the macro level, the proposed health expenditure of 1.2% of GDP in the Budget for 2017-18 is among the lowest in the world.
4. In real terms, public health expenditure has consistently declined since 2013-14. Of the total health budget, a mere 1-2% is spent on mental health.
5. Treatment gap (the difference between those suffering from mental illnesses and those seeking medical/psychiatric care) is widened because of the social stigma attached to such illnesses.

Way forward

1. Raising effective primary and district-level coverage of mental health services for the general population, without requiring people to travel long distances to see a specialist and get medicines, should be a priority.
2. There should be use of trained general practitioners as the first line of contact.
3. With a concerted effort, primary care physicians can be trained to help people with mild and severe problems, ranging from anxiety disorders to depression, psychoses and conditions arising from alcohol and substance abuse.

Professional counselling

1. Being able to get professional counselling will reduce the complications arising from extreme stress, often the trigger for suicide.
2. Modern treatment approaches rely more on family and community support.
3. The new Central and State regulatory authorities should speedily weed out shady non-governmental rehabilitation organisations in this field.

Questions

Q.) Discuss the features of Mental Healthcare Bill, 2016 and the challenges it could face in its implementation

Q.) Analyse the objectives of and concerns raised against the Mental Health Care Bill 2016

Note4students

Parliament has passed a crucial Bill to ensure equal rights to the people infected with HIV and AIDS in getting treatment and prevent discrimination of any kind. It’s important to study its various provision and flaws involved in the bill.

Introduction

Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS) (Prevention and Control) Bill, prohibits discrimination against people living with HIV (PLHIVs) on grounds of treatment, employment and workplace. It provides for complete confidentiality, helps in safeguarding patients’ rights, and also creates a proper grievance addressing mechanism

Status

Key highlights of the bill

1. Prohibition of discrimination against HIV positive persons:It prohibits any kind of discrimination against affected people in terms of employment, admission to educational institutes, renting property, insurance (unless based on actuarial studies) and standing for public or private offices.
2. People affected with HIV are entitled to access public facilities such as shops, restaurants, hotel, public entertainment venues, public facilities and burial ground, without any sort of discrimination.
3. This bill aims to provide the affected people with proper treatment and access to good health.
4. The bill prohibits anyone to publish information or promote hatred against those who are HIV positive.
5. It gives provision to the affected person to safeguard his/her property. He/she can live in a shared household without any bias and utilise all the shared facilities.
6. Informed consent and disclosure of HIV status:Any HIV test, medical treatment or research would be conducted only after the person’s informed consent. The HIV status would be kept completely confidential, if required, by court’s order.
7. Role of the central and state governments: All the HIV affected people to have right to prevention, testing, treatment and counselling services. Therapies such the Anti-Retroviral Therapy (ART) and infection management to be provided. The State and the Central Government will also provide welfare schemes especially for women and children.
8. The bill also states that priority should be given to cases related to HIV positive persons, at the same time maintaining complete confidentiality.
9. Role of the Ombudsman: An ombudsman will be appointed in every state to enquire about complaints regarding violations of the act.
10. Court proceedings: Cases relating to HIV positive persons shall be disposed off by the court on a priority basis.  In any legal proceeding, if an HIV infected or affected person is a party, the court may pass orders that the proceedings be conducted by suppressing the identity of the person, or in camera, and to restrain from revealing the identity of the person.

Pros

1. HIV/ AIDS bill passed by the parliament is in alignment with goal of AIDS free world by 2030 of SDGs.
2. Social Security: Under the bill, it is a legally punishable offence to deny a person living with HIV/AIDS insurance on the ground of the disease that lowers the immunity.
3. It also guarantees protection against discrimination in the field of education, employment, access to housing and healthcare.
4. States are given responsibility to implement the law and an ombudsman need to be appointed to look in to the progress of its implementation.
5. The most crucial step is that it recognizes the right of a person to keep his health status confidential so that he will not be judged based on his disease.
6. It is based on the tenet of stopping the spread of the disease and at the same time helps the infected get antiretroviral therapy
7. A person between 12-18 years of the age with sufficient maturity can be at the helm of affairs and can take guardianship of a sibling below 18 years of age.

Cons

• 1. The biggest lacuna is that insurance company is allowed to use actuarial calculations to limit access to products to people living with HIV.
  2. It fails to address the lack of awareness among masses regarding HIV/AIDS
  3. No step up in funding in healthcare sector to address the medical woes.
  4. Lack of promise on right to access to anti retro viral drugs and treatment for opportunistic infections.
  5. It doesn’t guarantee work opportunities for many, especially for families where there’s an ailing working member, no provision to help the family
  6. There is a lack of political will.
  7. There is a regional variations in the medical facility available.
  8. It does not guarantee HIV treatment as the legal right of the patient
  9. It doesn’t address constitutional ambiguity in this case where in some judgments the SC ordered that the movement of HIV Patients /Sex workers can be restricted, thus forming a basis for discrimination for the HIV affected.

Conclusion

HIV/AIDS bill is a progressive step in fight against the disease. Its effectiveness depends on implementation by the states.

Questions

Q. Discuss the features and significance of HIV and AIDS (Prevention and Control) Bill.

Q. Critically analyse the provisions of the HIV Bill