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  • Disqualification of Sitting MP: The Conundrum

    Central Idea

    • The instance where the Kerala High Court, in January this year, suspended the verdict passed by the Kavaratti District and Sessions Court (in an attempt to murder case) in which the then sitting Member of Parliament (MP) of Lakshadweep was sentenced to 10 years in jail. The issue is on whether disqualification for conviction is final or whether it can be revoked. This issue can arise whenever a legislator is disqualified.

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    The background: Facts are as follows

    • The facts are as follows. Mr. Faizal The then sitting MP of Lakshadweep was convicted by the Kavaratti sessions court on January 11 for attempt to murder, and sentenced to 10 years imprisonment.
    • On January 13, the Lok Sabha announced that he was disqualified as an MP with effect from the date of conviction.
    • On January 18, the Election Commission of India (ECI) fixed February 27 as the date for by-election to that constituency, with the formal notification to be issued on January 31.
    • Faizal appealed to the Kerala High Court for a stay on his conviction and sentence, which the High Court suspended on January 25.
    • The High Court suspended Faizal Faizal’s conviction due to the cost of a parliamentary election and the disruption of developmental activities in Lakshadweep.
    • Faizal challenged the ECI’s announcement in the Supreme Court of India. On January 30, the ECI said it was deferring the election.

    The specific provisions

    • The provision for disqualification is given in Article 102 of the Constitution: It specifies that a person shall be disqualified for contesting elections and being a Member of Parliament under certain conditions. These include holding an office of profit, being of unsound mind or insolvent, or not being a citizen of India. It also authorises Parliament to make law determining conditions of disqualifications.
    • The Representation of the People Act (RPA), 1951: The RPA provides that a person will be disqualified if convicted and sentenced to imprisonment for two years or more. The person is disqualified for the period of imprisonment and a further six years.
    • Exception for the sitting members: There is an exception for sitting members; they have been provided a period of three months from the date of conviction to appeal; the disqualification will not be applicable until the appeal is decided.

    A case of differential treatment of candidates

    • Challenges under Article 14 of the constitution: The differential treatment of candidates for elections and sitting members was challenged under Article 14 (right to equality).
    • Prabhakaran vs P. Jayarajan: A Constitution Bench of the Supreme Court, in 2005 (K. Prabhakaran vs P. Jayarajan), decided that the consequences of disqualifying a contestant and a sitting member were different.
    • Reasoning behind treating differently: The strength of the party in the legislature would change, and could have an adverse impact if a government had a thin majority. It would also trigger a by-election. Therefore, it was reasonable to treat the two categories differently.
    • Lily Thomas vs Union of India: In 2013, a two-judge Bench of the Supreme Court again considered whether this exception was constitutionally invalid (Lily Thomas vs Union of India). It stated that Article 102 empowers Parliament to make law regarding disqualification of a person for being chosen as, and for being, a member of either House of Parliament.
    • Exception for sitting members was unconstitutional: The judgment stated that making an exception for sitting members was against the constitution. As per Article 101, if a Member of Parliament is disqualified under Article 102, their seat will become vacant immediately. This means that if the conditions outlined in Article 102 are met, the disqualification will take effect automatically and immediately.

    What is the confusion?

    • In Navjot Singh Sidhu case, Supreme Court stayed his conviction: Navjot Singh Sidhu, an MP, was convicted and sentenced to three years imprisonment. He resigned from his seat but wanted to contest the election and appealed for a stay on his conviction. In 2007, the Supreme Court stayed his conviction, which removed the disqualification until the appeal was decided, allowing him to contest the election.
    • Question arises In Kerala case: The Lakshadweep seat was declared vacant, but the Election Commission of India (ECI) announced deferring the by-election after a stay order was granted. The Lok Sabha has kept the seat vacant and has not reinstated the MP. The question is whether the disqualification can be backdated, as if it never happened, and the election avoided. Or, whether the disqualification is removed only from the date of the stay order, and the vacated seat can be filled only through a by-election.
    • Conundrum and Implications: The conundrum arises because the Lily Thomas judgment requires the seat to be vacated immediately upon disqualification, whereas the Kerala High Court stay aims to keep the MP in the seat until the appeal is decided. The answer to this issue will have implications for similar cases in the future.

    Conclusion

    • As India continues to strengthen its democratic system, one important issue that needs resolution is determining the correct answer for when a disqualification is removed for a sitting member of parliament who has been granted a stay on their conviction. The conflicting court judgments and constitutional provisions only highlight the need for a clear and definitive resolution to this issue, which will undoubtedly enhance the credibility and legitimacy of the Indian political system.

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  • Debating the Abolition of Judicial Vacations

    Central Idea

    • The longstanding tradition of judicial vacations in India has come under scrutiny as a parliamentary committee.
    • Recent remarks by Chief Justice DY Chandrachud reignited discussions on the allocation of vacation days to Indian judges, shedding light on the intricate dynamics of judicial work patterns and the rationale behind vacation allotments.

    Vacation in Judiciary

    • Judicial Workdays: The Supreme Court has 193 working days annually, High Courts function around 210 days, and trial courts operate for 245 days. High Courts possess the authority to structure their calendars as per service rules.
    • Long-standing Practice: The practice of vacations, particularly the extensive 7-week (formerly 10-week) summer recess, has its origins in colonial times.

    Understanding Vacation Benches

    • Composition and Role: The CJI appoints a Vacation Bench, a specialized court that operates during the Supreme Court’s summer and winter breaks. Although the court is not fully closed during vacations, this bench handles cases deemed “urgent matters.”
    • Urgent Cases: While there is no explicit definition for “urgent matters,” the Vacation Bench typically entertains writs associated with habeas corpus, certiorari, prohibition, and quo warranto, all related to enforcing fundamental rights.
    • Rule 6 of Order II of the Supreme Court Rules, 2013: Under this rule, the CJI nominates Division Benches for urgent miscellaneous and regular hearing matters during the summer vacation period. The rule allows for the appointment of judges to hear urgent cases individually or in a Division Court.

    Historical Significance and Notable Cases:

    • Impactful Decisions: Vacation Benches have delivered significant judgments in the past. A well-known instance is when a Vacation Bench Judge refused PM Indira Gandhi’s plea to stay an Allahabad High Court decision in 1975, which led to the Emergency declaration.
    • Triple Talaq Case: In 2017, a Vacation Bench of the Supreme Court heard the triple talaq case during vacation days.

    Debates and Arguments Surrounding Vacation Benches

    [A] Arguments in Favor:

    • Judicial Rejuvenation: Advocates emphasize the need for vacation periods to provide judges with mental and physical rejuvenation.
    • Extended Work Hours: Considering the demanding nature of judicial work, proponents assert that the long working hours necessitate periodic breaks.
    • Writing Judgments: Judges use vacation time to draft judgments, contributing to the timely disposal of cases.

    [B] Arguments Against:

    • Pendency and Delays: Critics argue that the extended and frequent vacations exacerbate the backlog of cases and contribute to the slow pace of justice delivery.
    • Inconvenience to Litigants: For litigants, vacations translate to additional delays in case hearings.

    Calls for Reform

    • Malimath Committee (2000): The committee proposed reducing vacation periods by 21 days, advocating for the Supreme Court to operate for 206 days and High Courts for 231 days annually.
    • Law Commission of India (2009): The commission recommended curtailing vacations by 10-15 days and extending court working hours to address the substantial backlog of cases.
    • Supreme Court’s 2014 Rule Change: The Supreme Court truncated the summer vacation period from 10 weeks to seven weeks.
    • RM Lodha Commission (2014): It suggested that individual judges should take leave at different times throughout the year instead of having all judges on vacation at once.

    Proposed Approach and Suggested Changes

    • Continuous Operation: The 133rd committee supports the notion that individual judges should take their leave at different intervals, thereby ensuring that the courts remain open throughout the year.
    • Redefined Judicial Vacations: The parliamentary report calls for a reevaluation of the traditional concept of vacations, advocating for a more modern and efficient approach to court operation.
    • Comparison with Other Countries: The report suggests that the vacation practices of the Supreme Court and High Courts should be reviewed in comparison to other countries’ higher courts and constitutional institutions.

    Conclusion

    • The debate surrounding the abolition of judicial vacations in India emphasizes the necessity for a dynamic and effective approach to court operations.
    • While the tradition has historical significance, the current judicial landscape calls for a re-evaluation of practices to ensure efficient functioning, address the backlog of cases, and minimize inconveniences to litigants.
  • Agriculture: An Inclusive Model of Madhya Pradesh

    Agriculture

    Central Idea

    • India is today a $3.5 trillion economy. As per the IMF forecast, If the current growth trend continues, the country is likely to be a $5.4 trillion economy by 2027.  No wonder, Prime Minister Narendra Modi has termed the next 25 years, when India completes 100 years of Independence, as Amrit Kaal. There are lessons from Madhya Pradesh’s agriculture model for inclusive sustainable growth.

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    India’s Growth trajectory

    • India seems to be on the right path and is doing pretty well especially when compared to its progress in the first six decades after 1947.
    • As per IMF, it took India almost 59 years since Independence to become a $0.95 trillion economy in 2006. But then it became a $2.3 trillion economy by 2016 it added $1.35 trillion in 10 years.
    • In 2022, it became a $3.5 trillion economy by adding $1.2 trillion in just six years. If India stays this course, the country could rise to a $25 to $30 trillion economy by 2047.

    How inclusive is this growth?

    • Inclusiveness measurement and performance: Inclusiveness is measured by looking at the record of the laggard states, especially the so-called BIMARU states (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh), and also the performance of the agricultural sector that engages the largest share of workforce 46.5 per cent in 2020-21.
    • Performance of GDP at the state level: The country averaged a GDP growth of 6.7 per cent per annum in this period and its agri GDP growth stood at 3.8 per cent per annum. This is satisfying, though not as outstanding as China’s performance.
    • Of all the major states: Gujarat topped the list in overall GDP growth at 8.9 per cent closely followed by Uttarakhand (8.7 per cent), Telangana (8.6 per cent) and Haryana (8 per cent). At the bottom of this list were Jammu and Kashmir (5.2 per cent), Assam (5.4 per cent), West Bengal (5.5 per cent), Uttar Pradesh (5.6 per cent) and Jharkhand (5.7 per cent).
    • Madhya Pradesh (MP): MP is the only state whose agriculture contribution to overall GDP has increased to 40 per cent, as against 18.8 percent at the all-India level its model should aptly be described as inclusive and sustainable.
    • Jharkhand: Jharkhand has performed exceptionally well in agriculture with a growth rate of 6.4 per cent per annum, largely driven by diversification towards horticulture and livestock.
    • Punjab: In contrast, the Green Revolution champion Punjab hasn’t done well. Its Agri-GDP growth was a meagre 2 per cent per annum over this period.

    Inclusive and sustainable Model of Madhya Pradesh

    • Highest growth rate: Madhya Pradesh has performed very well it has clocked the highest growth rate in agriculture at 7.3 per cent. Its overall GDP growth is a respectable 7.5 per cent.
    • Agri-GDP growth is above India Agri-GDP growth: The state’s agri-GDP growth is way above the all India agri-GDP growth and the state is a shining example of doubling the contribution of horticulture in its value of agriculture and allied sector.
    • Well-diversified portfolio in agriculture: MP has made its mark as a top-notch player in tomato, garlic, mandarin oranges, pulses especially gram and soyabean cultivation. MP is also the second-largest producer of wheat after UP, and the third-largest milk producer after UP and Rajasthan.
    • Doubled irrigation coverage: It is following a well-diversified portfolio in agriculture while doubling irrigation coverage from 24 to 45.3 per cent of its gross cropped area over the last two decades.

    Conclusion

    • Madhya Pradesh agriculture model suggests that a well-diversified portfolio in crops is behind the high growth in the farm sector. This is inclusive and sustainable and offers a path for other Indian states.

    Mains Question

    Q. A well-diversified portfolio in crops could be an engine of high growth in India’s farm sector. Discuss. Support your answer with an illustration.

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  • Organ transplant rules In India: A Significant Step

    transplant

    Central Idea

    • The changes to the organ transplant rules announced by the Union health ministry last week, are small, but significant, steps towards giving a new lease of life to many people with failing organs. Despite of performing the third-the greatest number of transplants in the world, only about 0.01 percent of Indians donate their organs after death, according to the World Health Organization.

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    What are the changes introduced?

    • No age ceiling for organ receivers: With the new changes, patients who are 65 years and older can now register for receiving organs from a deceased donor. Now an individual of any age can register for organ transplant.
    • Previously: Previously, the upper age limit for registering patients requiring organs from deceased donors was 65 years, but this ceiling has now been removed.
    • No domicile criteria for receivers: Eliminate the domicile criterion for registering to receive organs, so that patients in need can register in any state.
    • Previously: Currently, certain states restrict registration for deceased organ donors to only those who are domiciled in the state or give them preference. Organs harvested in one state are first shared with other hospitals within the same state, then in the region and then share nationally on the occasion that no match was found.
    • No registration fees: The ministry has also requested that states not impose any fees on patients seeking registration for organ transplantation, as it violates the 2014 Transplantation of Human Organs and Tissues Rules.
    • Previously: States such as Maharashtra, Kerala, Gujarat, and Telangana charge between Rs 5,000 and Rs 10,000 to register patients who need an organ replacement. The health ministry has rightly directed these states to stop charging this fee.

    Where does India stand?

    • Third Highest number of transplants in the world: India conducts the third highest number of transplants in the world every year. Yet barely four per cent of the patients who require a liver, heart or kidney transplant manage to get one.
    • Organ transplants has significantly increased over the past decade: According to latest available official data, the number of organ transplants has significantly increased over the past decade. In 2013, there were 4,990 organ transplants, whereas in 2022, there were 15,561 a jump of 211 percent.
    • Kidney transplants: Specifically, the number of kidney transplants from living donors increased by approximately 181 percent from 3,495 in 2013 to 9,834 in 2022. The number of kidney transplants from deceased donors increased by approximately 193 percent from 542 in 2013 to 1,589 in 2022.
    • Liver transplants: The total number of liver transplants from living donors increased by approximately 350 percent from 658 in 2013 to 2,957 in 2022, and from deceased donors, it increased by approximately 217 percent from 240 in 2013 to 761 in 2022. Deceased donors account for nearly 17 percent of all transplants in India.
    • Heart and Lung transplants: The total number of heart transplants increased by approximately 733 percent from 30 in 2013 to 250 in 2022, while lung transplants increased by approximately 500 percent from 23 to 138.
    • Government hospitals fall behind: Furthermore, private hospitals lead in organ transplants while numbers in government hospitals remain relatively low, sources said.

    transplant

    Challenges to Organ Donation in India

    • Lack of awareness: There is a lack of awareness among the general public about the importance of organ donation, the legal framework governing it, and the procedures involved. This can limit the number of potential donors.
    • Cultural beliefs and superstitions: In India, there are several cultural beliefs and superstitions that discourage organ donation. Some people believe that organ donation is against religious beliefs, or that it can impact the soul or afterlife.
    • Lack of infrastructure: India faces a shortage of hospitals and medical facilities that are equipped to handle organ transplantation. This can limit the availability of organs for transplantation.
    • Regulatory bottlenecks: While the legal framework exists, there is a lack of implementation and enforcement of the law. This can lead to issues such as organ trafficking and black-market activities.

    Did you know?

    • NOTTO Scientific Dialogue 2023 was organized to bring all the stakeholders under one roof to brainstorm ideas about interventions and best practices in the organ and tissue transplant field that can be taken up for saving lives.

    What is National Organ and Tissue Transplant Organization (NOTTO)?

    • NOTTO is a national level organization set up under Directorate General of Health Services, Ministry of Health and Family Welfare, Government of India.
    • It has following two divisions:
    • National Human Organ and Tissue Removal and Storage Network: It functions as apex Centre for All India activities of coordination and networking for procurement and distribution of Organs and Tissues and registry of Organs and Tissues Donation and Transplantation in the country
    • National Biomaterial Centre: The main thrust & objective of establishing the centre is to fill up the gap between ‘Demand’ and ‘Supply’ as well as ‘Quality Assurance’ in the availability of various tissues. The centre will take care of the Tissue allografts such as Bone and bone products, Skin graft, Cornea and Heart valves and vessel.

    Conclusion

    • The percentages are very likely to go up once the changes in the rules announced last week take effect. The organ shortage problem is, however, a complex one, that continues to confound planners, even in nations whose healthcare systems are far better equipped than that of India’s. There is a need to expand the number of institutions where surgeries and transplants are undertaken. A uniform policy, will help patients in seeking transplant from deceased donors at any hospital in the country, giving them a lot of flexibility.

    Mains Question

    Q. Despite of performing the third-the greatest number of transplants in the world, only about 0.01 percent of Indians donate their organs after death. Discuss the recent changes in the rules of transplantation suggested by Union Health Ministry.

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  • [Sansad TV] Diplomatic Dispatch: Operation Dost & India’s role as First Responder

    [Sansad TV] Diplomatic Dispatch: Operation Dost & India’s role as First Responder

    In this article, we will discuss Operation Dost and India’s increasing profile as a first responder and net security provider.

    Context

    • On 6th of February, a massive earthquake struck southern Turkiye and Syria affecting millions of people in the region.
    • Immediately on receiving news of this tragedy, Prime Minister Narendra Modi directed that all possible assistance be extended to the affected people.

    What is Operation Dost?

    • Operation Dost is an ongoing search and rescue operation initiated by India to aid Syria and Turkey, after the 2023 Turkey–Syria earthquake devastated both countries on 6 February 2023.
    • The Indian Army prepared its rescue teams with relief materials within 12 hours after disaster struck (much before the Turkish Army was mobilised).

    How swiftly did India respond?

    • Rescue ops: The NDRF has already flown close to 100 rescue workers along with dog squads to help with efforts, using specialised CSSR (Collapsed Structure Search and Rescue) equipment and techniques.
    • Doctors’ dispatch: A military medical contingent has set up a field hospital in Turkiye for a 30-bed facility and specials, x-ray machines, ventilators, generators and ambulances
    • Relief material: About 25 Tonnes of relief material, protective gear, clothes, emergency medicines, medical items have already reached, more to follow
    • Tech support: India provided Garuda Aerospace’s drones to the most affected areas to identify those trapped under rubble, along with modified Kisan drones carrying medications, food, and supplies.

    Central Idea: HADR Diplomacy

    • Disaster relief diplomacy, also known as Humanitarian Assistance and Disaster Relief (HADR) diplomacy, refers to a country’s efforts to provide aid and support to other countries affected by natural disasters or conflicts.
    • This approach to diplomacy involves a country’s deployment of personnel, resources, and aid to provide assistance to those in need.
    • It involves the sharing of expertise, resources, and knowledge to provide relief and support during times of crisis.

    Features of HADR Diplomacy

    • Multipronged approach: HADR diplomacy is typically a multilateral effort, involving partnerships between multiple countries, international organizations, and local authorities. This approach allows for a coordinated response to a disaster and promotes international cooperation.
    • Capacity-building: HADR diplomacy involves building up a country’s capacity to provide assistance during times of crisis. This includes training personnel, acquiring equipment and supplies, and developing disaster response plans.
    • Focus on vulnerable populations: HADR diplomacy is often focused on supporting vulnerable populations affected by disasters, such as women, children, the elderly, and those with disabilities.
    • Long-term support: HADR diplomacy goes beyond immediate disaster relief efforts and often involves long-term support for affected communities. This can include rebuilding infrastructure, providing healthcare and education, and promoting economic recovery.
    • Emphasis on communication and information sharing: HADR diplomacy involves effective communication and information sharing between different agencies, governments, and organizations. This is essential for coordinating a response to a disaster and ensuring that resources are used effectively.
    • Respect for local culture and customs: HADR diplomacy involves an understanding and respect for local culture and customs. This helps ensure that relief efforts are culturally appropriate and sensitive to the needs of the affected population.

    Why is it used?

    • Soft power tool: It is mixed with solidarity and empathy at a time when suffering populations require as much help as possible.
    • Building ties: Disaster relief diplomacy can be used to build strong ties between countries and promote international cooperation.
    • Responsible global actor: Disaster relief diplomacy can also serve as a means to demonstrate a country’s commitment to global humanitarian efforts and help build its reputation as a responsible global actor.

    India and HADR Diplomacy

    india
    • India’s humanitarian assistance and disaster relief (HADR) capacities tying into its diplomacy have grown significantly. It began after the 2011 Tsunami.
    • The Quad was also conceived out of an initial blueprint to build disaster response systems in the region.

    Instances of India sending aid to natural disaster-hit countries

    • Maldives: After the 2004 Tsunami, the Indian government announced a composite package worth five crore rupees. Under “Operation Castor”, 50 sorties were undertaken and four aircraft and two Naval ships were engaged in relief operations. Repairing and restoring generators and communication, providing drinking water, and setting up medical camps on ships was also done.
    • Sri Lanka: India sent its forces to carry out rescue operations, called “Operation Rainbow”, in Sri Lanka hours after the Tsunami struck the country on December 26, 2004. Not only this, India provided medical assistance to thousands of victims by setting up medical camps in coordination with the local civil and military health authorities. Preventative medication and vaccines were also supplied.
    • Myanmar: When cyclone Nargis hit Myanmar in 2008 killing at least 20,000 people, India was among the first countries to send aid to them. It gave 125.5 tonnes of relief material, including medicines, clothing, utensils, water tanks, tents and tarpaulin.
    • Japan: The 2011 Tsunami wreaked havoc in Japan. Apart from providing relief materials, India also sent 46 members of the NDRF to search and rescue in the town of Onagawa. It was their first overseas operation. The team included a doctor, three officers, six inspectors, two paramedics and constables and carried 9,000 kg of equipment and food.
    • Nepal: In the aftermath of the 2015 Nepal earthquakes, the NDRF deployed 16 of its urban search and rescue (USAR) teams, which comprised more than 700 rescuers in the country. They rescued 11 injured persons and retrieved 133 dead bodies from the rubble. The teams also organised six medical camps and attended to 1,219 persons. Indian authorities sent more than 1,176 tonnes of relief materials to Nepal.

    India’s traditional rivalry with Turkiye

    Ankara’s long-standing stance on Kashmir and backing Pakistan, especially at the United Nations (UN), pushed some to ask why India was offering aid if Turkiye did not back India’s sovereignty.

    Setting differences aside, why is India helping Turkey?

    • In the case of India providing earthquake relief to Turkey, there are several factors that likely influenced India’s decision:
    • Humanitarian considerations: The primary reason for providing assistance in times of disaster is to help those in need, regardless of political or strategic considerations. The earthquake in Turkey was a humanitarian crisis, and India likely felt compelled to provide assistance to help alleviate the suffering of those affected.
    • Diplomatic reset: Disaster relief efforts can also serve as a means of promoting diplomatic relations between countries. By providing aid to Turkey, India may have been seeking to build goodwill and improve its relationship with the country.
    • Shared interests: Despite past disagreements and conflicts, India and Turkey share some common history, culture and interests such as economic and strategic ties. Providing aid to Turkey may have been a way for India to demonstrate its commitment to these shared interests.
    • International reputation: As a rising global power, India likely sees disaster relief efforts as a means of demonstrating its commitment to global humanitarian efforts and building its international reputation. By providing HADR, India has established itself as a responsible global actor.
    • Cultural and people-to-people ties: India and Turkey share cultural and historical ties, with both countries having a rich cultural heritage. Ex. Ankara granting e-visa facilities to Indian tourists and Bollywood films being popular among Turkish masses.

    While past conflicts and disagreements may influence international relations, countries often engage in aid and diplomatic efforts with countries they may have had past grievances with for a variety of reasons.

    Diplomatically, what did India gain?

    • Bilateral ties reset: In this case, India’s assistance to Turkiye comes at a time when ties are still tense- particularly over unwarranted Turkish statements and aids to radicalists in Kashmir.
    • Global responder image: Especially in the year of India’s G20 presidency, India’s assistance burnishes its image as a leader of the developing world.
    • Military capability on display: This disaster portrayed India’s swift response to rescue operations by mobilizing transporters, field hospitals, and technical teams within hours. It somehow portrays India’s preparedness for War.
    • Improves response time: Op dost would help India with future calamities in India or anywhere in the world.
    • Economic benefits: India’s HADR diplomacy has also brought economic benefits to the country. By providing aid and support to other countries, India has developed trade and economic relationships, and gained access to new markets and resources.

    How can Turkiye benefit from this?

    • Preferring India over appeasing Pakistan: It is becoming increasingly obvious that Turkey is getting disenchanted with Pakistan by and by, the most important factor behind its animosity towards India. The number of illegal Pakistanis.
    • Battling domestic economic crisis: Turkey, which is undergoing a big economic crisis with historically high inflation of 80 percent, has to be pragmatic, not ideological, so as to win more friends than foes.
    • Attracting more Indian tourists: Indians are now the third-largest Asian tourists in Turkey after China and Indonesia. Indian businesses, from food to technology, have been gradually expanding their presence in Turkey.
    • Rebuking its ideals of Khilafat: Turkey perhaps realizes now its failure to emerge as the leader a grouping consisting of Pakistan, Malaysia, Iran, and Qatar, in an attempt to break Saudi and UAE’s ideological supremacy within the Islamic world.
    • Rebuilding ties with Israel: Turkey re-established diplomatic relations with Israel after more than a decade of tensions that erupted in 2010 when Israeli commandos killed 10 Turkish activists in Gaza. India can help them come closer.

    Conclusion

    • Providing relief and aid to not just neighboring, but in the extended neighborhood of West Asia bodes well for the kind of diplomacy India is aiming to conduct in the future.
    • Public diplomacy, such as HADR capacities, remains one of the most effective tools to build capacities on a people-to-people level, conduct of which needs to be done in a humble way.

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  • GST Appellate Tribunal gets nod

    The GST Council reached a broad consensus on setting up GST Appellate Tribunal; likely to be included in Finance Bill 2023.

    What is GST Appellate Tribunal?

    • The GST Appellate Tribunal is a quasi-judicial body proposed to be established to resolve disputes related to the Goods and Services Tax (GST) in India.
    • It will function as an independent body to hear appeals against orders passed by the GST authorities or the Appellate Authority.
    • The tribunal will be composed of a national bench and various regional benches, headed by a chairperson appointed by the central government.
    • The proposed tribunal is expected to help expedite the resolution of disputes related to GST and reduce the burden on the judiciary.

    Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):

    1. Adjudicating Authority
    2. Appellate Authority
    3. Appellate Tribunal
    4. High Court
    5. Supreme Court

    Why need such Tribunal?

    • Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month old indirect tax regime that are now clogging High Courts and other judicial fora.
    • Improve efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.
    • Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.
    • Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.

    Issues with present litigation

    • Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.
    • Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.
    • Time consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.

    How is it being established?

    • The proposed GST Appellate Tribunal is expected to be included in the Finance Bill 2023.
    • This means that it will become a part of the central government’s budget, and will have legal standing.

    Do you know?

    Income Tax Appellate Tribunal (ITAT) was the first Tribunal in India to be created on 25th January, 1941 and is also known as ‘Mother Tribunal’! And it functions under the Ministry of Law and Justice and not the obvious looking Ministry of Finance.


    Back2Basics: What is a Finance Bill?

    • A Finance Bill is a proposed legislation that is introduced by the government to implement the financial proposals of the Union Budget for the upcoming financial year in India.
    • It is a comprehensive document that outlines the government’s revenue and expenditure for the year, including changes in tax laws, tariffs, customs duties, and other fiscal measures.
    • Since the Union Budget deals with these things, it is passed as a Finance Bill.

    Types of Finance Bills

    • There are different kinds of Finance Bills — the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110.
    • In India, there are three types of Finance Bills that can be introduced in the Parliament:
    1. Annual Finance Bill: This is the most common type of Finance Bill and is introduced by the government every year to give effect to the tax proposals announced in the Union Budget. It contains provisions related to taxation, expenditure, and revenue collection for the upcoming financial year.
    2. Finance Bill (Money Bill): A Money Bill is a type of Finance Bill that contains only provisions related to taxation and expenditure, but does not include any other matter. Money Bills are deemed to be passed by the Lok Sabha, the lower house of Parliament, and do not require approval from the Rajya Sabha, the upper house of Parliament.
    3. Finance Bill (Non-Money Bill): This type of Finance Bill contains provisions related to taxation and other matters, such as changes in the structure of regulatory bodies or the introduction of new policies. Unlike Money Bills, Non-Money Bills must be passed by both the Lok Sabha and the Rajya Sabha to become law.

    How is money bill different from Finance Bill?

    • A Money Bill is certified by the Speaker as such — in other words, only those Financial Bills that carry the Speaker’s certification are Money Bills.
    • Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:

    (a) the imposition, abolition, remission, alteration or regulation of any tax;

    (b) the regulation of the borrowing of money or any financial obligations undertaken

    (c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;

    (d) the appropriation of moneys out of the consolidated Fund of India;

    (e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;

    (f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or

    (g) any matter incidental to any of the matters specified in sub clause (a) to (f)

     

     

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  • The National Land Monetisation Corporation (NLMC)

    The National Land Monetisation Corporation (NLMC) has decided to involve international property consultancy firms to speed up the process of making money by selling or leasing the land owned by the government.

    What is NLMC?

    • NLMC is a Special Purpose Vehicle (SPV) announced in the Union Budget 2021-22 to carry out monetisation of government and surplus land holdings of public sector undertakings (PSU).
    • It falls under the administrative jurisdiction of the Ministry of Finance and is set up with an initial authorised share capital of ₹5,000 crore and a paid-up capital of ₹150 crore.
    • It is a firm, fully owned by the government, to carry out the monetisation of government and public sector assets in the form of surplus, unused or underused land assets.

    Aims and objectives

    • Monetize underutilised or unused land parcels of Central Public Sector Enterprises (CPSEs)
    • Facilitate the monetisation of assets belonging to PSUs that have ceased operations or are in line for a strategic disinvestment.
    • Transfer of revenue rights: When the government monetises its assets, it essentially means that it is transferring the revenue rights of the asset (could be idle land, infrastructure, PSU) to a private player for a specified period of time.
    • Govt as facilitator: In such a transaction, the government gets in return an upfront payment from the private entity, regular share of the revenue generated from the asset, a promise of steady investment into the asset, and the title rights to the monetised asset.

    Significant outcomes of land monetization

    • Maximum value realization: It will help monetise them in an efficient and professional manner, maximizing the scope of value realisation.
    • Speed up the process: The setting of the NLMC will speed up the closure process of the CPSEs and smoothen the strategic disinvestment process.
    • Capitalize land assets: It will also enable productive utilisation of these under-utilized assets by setting in motion private sector investments.
    • Economic revitalization: It will boost new economic activities such as industrialisation, boosting the local economy by generating employment and generating financial resources for potential economic and social infrastructure.
    • Advisory to the govt: Besides managing and monetising, the NLMC will act as an advisory body and support other government entities and CPSEs in identifying their surplus non-core assets.

    Need for land monetization

    There are different reasons why the government monetizes its assets.

    • New sources of revenue: One of them is to create new sources of revenue essential to fulfil the government’s target of achieving a $5 trillion economy.
    • Plummeting underutilized assets: Monetisation is also done to unlock the potential of unused or underused assets by involving institutional investors or private players.
    • Capital generation: It is also done to generate resources or capital for future asset creation, such as using the money generated from monetisation to create new infrastructure projects.

    Possible challenges for NLMC

    (1) Volatile market situation

    • The performance and productivity of the NLMC will also depend on the government’s performance on its disinvestment targets.
    • In FY 2021-22, the government has hardly been able to raise expected amounts through various forms of disinvestment.

    (2) Issues with transfer of rights

    • The process of asset monetisation does not end when the government transfers revenue rights to private players.
    • Identifying profitable revenue streams for the monetised land assets, ensuring adequate investment by the private player and setting up a dispute-resolution mechanism are also important tasks.

    (3) Unattractiveness of PPP Model

    • Posing as another potential challenge would be the use of Public Private Partnerships (PPPs) as a monetisation model.
    • For instance, the results of the Centre’s PPP initiative launched in 2020 for the Railways were not encouraging.

    (4) Red tapism

    • The success of the initiative will depend on a range of factors, including the availability of suitable land parcels, market demand etc.
    • It will be highly dependent upon the ability of the government to execute the transactions efficiently.

    Conclusion

    • The government’s move to monetize its vast land assets is aimed at reducing the fiscal burden and boosting infrastructure development in the country.
    • By bringing in international property consultants to help with the process, the government hopes to improve efficiency and transparency, and maximize the returns on its land assets.
    • If successful, the government’s land monetization drive could provide a much-needed boost to the economy and create new opportunities for private investment in the real estate sector.

     

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  • How is the Stock Market regulated in India?

    stock

    The Supreme Court asked the Securities and Exchange Board of India (SEBI) and the government to produce the existing regulatory framework in place to protect investors from stock market volatility.

    Central idea

    • After short-seller Hindenburg Research published a report accusing the Adani Group of stock market manipulation and accounting fraud, its shares plummeted.
    • Investors were reported to have lost lakhs of crores.

    Laws governing the Indian Stock Market

    • The securities market in India is regulated by four key laws —
    1. Securities and Exchange Board of India Act, 1992 (SEBI Act)
    2. Securities Contracts (Regulation) Act, 1956 (SCRA) and
    3. Depositories Act, 1996
    4. Companies Act, 2013
    • The framing of these laws reflect the evolution and development of the capital market in India.

    Brief explanation of each acts-

    (1) Securities and Exchange Board of India Act, 1992 (SEBI Act)

    (2) Securities Contracts (Regulation) Act, 1956 (SCRA)

    • The SCRA empowers SEBI to recognise (and derecognise) stock exchanges, prescribe rules and bye laws for their functioning, and regulate trading, clearing and settlement on stock exchanges.

    (3) Depositories Act, 1996

    • As part of the development of the securities market, Parliament passed the Depositories Act and SEBI made regulations to enforce the provisions.
    • This Act introduced and legitimised the concept of dematerialised securities being held in an electronic form.
    • Today almost all the listed securities are held in dematerialised form.

    (4) Companies Act, 2013

    • It is an Act of the Parliament on Indian company law that regulates incorporation of a company, responsibilities of a company, directors, and dissolution of a company.
    • It stipulates the type of Companies that can be formed such as- Public Ltd., Pt. Ltd., One Person Company ex.

    Key role-player: SEBI

    • SEBI set up the infrastructure for doing this by registering depositories and depository participants.
    • The depository regulations empower SEBI to regulate functioning of depositories and depository participants by prescribing eligibility conditions, periodic inspections and powers to impose penalties including suspending or cancelling the registration as well as monetary penalties.

    You should know this!

    Shares and stocks both represent ownership in a company, but they are not the same thing

    • A share is a unit of ownership in a company. It represents a portion of the company’s capital, and the shareholder is entitled to a corresponding portion of the company’s profits or losses.
    • A company can issue different types of shares with varying rights, such as voting rights or dividend payments.
    • Stock, on the other hand, is a broader term that refers to the total capital raised by a company through the issuance of shares.
    • It represents the ownership of a company as a whole, rather than an individual unit of ownership.
    • So, shares are a component of stock, and owning shares of a company means owning a portion of the company’s stock. Stock represents the aggregate value of a company and includes all its shares.

    Can SEBI step in to curb market volatility?

    • No direct meddling: While SEBI does not interfere to prevent market volatility, exchanges have circuit filters — upper and lower — to prevent excessive volatility.
    • Issue directions: SEBI can issue directions to those who are associated with the market, and has powers to regulate trading and settlement on stock exchanges. Using these powers, SEBI can direct stock exchanges to stop trading, totally or selectively.
    • Instant regulation: It can also prohibit entities or persons from buying, selling or dealing in securities, from raising funds from the market and being associated with intermediaries or listed companies.

    What about stock exchanges?

    • The SCRA has empowered SEBI to recognise and regulate stock exchanges and later commodity exchanges in India; this was earlier done by the Union government.
    • In fact, the term “securities” is defined in the SCRA and powers to declare an instrument as a security remain vested in SEBI.
    • The rules and regulations made by SEBI under the SCRA relate to listing of securities like equity shares, the functioning of stock exchanges including control over their management and administration.
    • These include powers to determine the manner in which a settlement is done on stock exchanges (and to keep them with the times for e.g. T+1) etc.
    • It seeks to protect the interests of investors by creating an Investor Protection Fund for each stock exchange.

    Safeguards against fraud

    • Fraud undermines regulation and prevents a market from being fair and transparent. To prevent the two key forms of fraud, market manipulation, and insider trading, SEBI notified-
    1. Prohibition of Fraudulent and Unfair Trade Practices Regulations, 1995
    2. Prohibition of Insider Trading Regulations, 1992
    • These regulations, read with provisions of the SEBI Act, define species of fraud, who is an insider and prohibit such fraudulent activity and provide for penalties including disgorgement of ill-gotten gains.
    • It must be noted that violation of these regulations are predicate offences that can lead to a deemed violation of the Prevention of Money Laundering Act.

    Do you know?

    • SEBI has been given the powers of a civil court to summon persons, seize documents and records, attach bank accounts and property, and to carry out investigations.
    • Using these powers, SEBI has acted against entities and individuals like Satyam, Sahara India, Ketan Parekh and Vijay Mallya.

     

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