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Type: Bills/Act/Laws

  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Centre notifies four new Labour Codes

    Why In The News?

    The Centre notified all four Labour Codes, introducing major reforms and replacing 29 outdated labour laws dating back to the 1930s.

    1)Introduction to the Labour Codes Notification:

    • Major Reform Announcement: The Centre notified all four Labour Codes, introducing wide-ranging changes in India’s labour framework.
    • Key Focus Areas: The reforms expand social security to gig workers, ensure gender pay parity, enhance women’s workplace rights, and introduce fixed-term employment.
    • Replacement of Old Laws: The Codes replace 29 fragmented labour laws dating back to the 1930s–1950s.

    2)Government’s Stance:

    • Prime Minister’s View: PM Modi described the reforms as one of the most comprehensive labour transformations since Independence.
    • Worker Empowerment: The government highlights that the Codes aim to ensure universal social security, timely wage payments, and safer workplaces.
    • Simplified Compliance: The reforms are expected to promote ease of doing business through simplified compliance mechanisms.
    • Minister’s Statement: Labour Minister Mansukh Mandaviya said the Codes will formalise employment and make the labour ecosystem globally aligned.
    • State-Level Readiness: Most States have already issued draft rules; the Centre is supporting those still finalising rules.

    3)Key Provisions:

    • Women’s Safety and Rights: Expanded rights, including permission for night shifts and enhanced workplace safety.
    • Health and Social Security: Free annual health check-ups for workers above 40 and nationwide ESIC coverage, including hazardous units.
    • Simplified Procedures: A single registration, licensing, and return system for employers.
    • Wage and Safety Standards: Introduction of a national floor wage and creation of a National OSH Board for uniform safety standards.
    • Fixed-Term Employment: Allows fixed-term workers to receive all benefits equivalent to permanent workers.
    • New Work Categories: Gig workers, platform workers, and aggregators are legally defined for the first time.
    • Universal Account Number: Aadhaar-linked UAN ensures portability and easy access to welfare benefits.
    • Inclusion of Plantation Workers: Plantation workers brought under OSHWC and Social Security Codes.

    4)Responses from Stakeholders:

    Trade Union Concerns:

    • Opposition to Codes: Several central trade unions reject the Labour Codes, labelling them anti-worker and pro-employer.
    • Issues with Timing: CTUs argue implementing the Codes amid rising unemployment and inflation will worsen workers’ hardships.
    • Protest Plans: Unions have announced nationwide protests on November 26 and cite earlier strikes against the Codes.
    • Fear of Exploitation: Trade unions warn the reforms could revive a “master-servant” relationship, reducing worker protections.

    BMS Standpoint: The Bharatiya Mazdoor Sangh supports implementation but seeks amendments to remove perceived anti-worker provisions in OSH and Industrial Relations Codes.

    Industry View: CII praises the reforms as a transformative step towards a modern and simplified labour ecosystem.

    [UPSC 2021] With reference to casual workers employed in India, consider the following statements: 1.All casual workers are entitled to Employees Provident Fund coverage.

    2.All casual workers are entitled to regular working hours and overtime payment.

    3.The government can, by notification, specify that an establishment or industry shall pay wages only through its bank account. Which of the above statements are correct? Options: (a) 1 and 2 only (b) 2 and 3 only* (c) 1 and 3 only (d) 1, 2, and 3

     

  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Pradhan Mantri Fasal Bima Yojana: Rajasthan farmers’ protests on insurance claims

    Why In The News?

    Farmers in Rajasthan’s Churu district held a ‘Kisan Ekta Tractor March’ demanding pending crop insurance claims, fertiliser availability, transparency in the insurance portal, and inclusion of certain crops in PM Dhan Dhanya Yojana. The protest was postponed after government assurances during late-night negotiations.

    About Pradhan Mantri Fasal Bima Yojana (PMFBY):

    • Launch & Purpose:
      • Launched on 18 February 2016 by the Ministry of Agriculture to provide affordable crop insurance and financial protection against losses from natural calamities, pests, and diseases.
      • Implemented through insurance companies and banks.
    • Objectives:
      • Provide financial assistance for crop loss due to unforeseen events.
      • Stabilise farmer income and ensure continuity in farming.
      • Promote modern agricultural practices.
      • Encourage crop diversification, enhance creditworthiness, and improve agriculture sector competitiveness.
    • Eligibility:
      • All farmers including sharecroppers and tenant farmers growing notified crops in notified areas.
      • Compulsory: Loanee farmers with Seasonal Agricultural Operations (SAO) loans.
      • Voluntary: Non-loanee farmers.
      • Must have insurable interest and valid land ownership/tenure documents.
      • Must not receive duplicate compensation from other sources.
      • Special focus on SC/ST/Women farmers with proportional budget allocation.
    • Benefits:
      • Affordable Premiums:
        • Farmers pay 2% for Kharif, 1.5% for Rabi, and 5% for commercial/horticultural crops.
        • Government provides premium subsidy; pays full premium in NE states, J&K, and Himachal Pradesh.
      • Comprehensive Coverage:
        • Covers natural disasters, pests, diseases, and post-harvest losses (hailstorm, landslide).
        • Excludes losses due to war, nuclear risks, malicious damage, or preventable risks.
      • Timely Compensation:
        • Claims processed within two months of harvest.
      • Technology-Driven Implementation:
        • Uses satellite imaging, drones, and mobile apps for precise loss estimation.
        • NCIP for digital processing; YES-TECH for remote-sensing yield estimation; CROPIC for geotagged crop verification.
    [UPSC 2020] In India, which of the following can be considered as public investment in agriculture?
    1. Fixing Minimum Support Price for agricultural produce of all crops
    2. Computerization of Primary Agricultural Credit Societies
    3. Social Capital development
    4. Free electricity supply to farmers
    5. Waiver of agricultural loans by the banking system
    6. Setting up of cold storage facilities by the governments
    Select the correct answer using the code given below: Options: (a) 1, 2 and 5 only (b) 1, 3, 4 and 5 only (c) 2, 3 and 6 only* (d) 1, 2, 3, 4, 5 and 6

     

  • Alternative Dispute Resolution Mechanism – NCA, Lok Adalats, etc.

    Search on for five declared foreigners by Assam tribunal

    Why In The News?

    Police in Assam’s Sonitpur district are searching for five people declared non-citizens by a Foreigners’ Tribunal after they repeatedly failed to appear for hearings, prompting the tribunal to issue an ex-parte order.

    1) About Foreigners Tribunal (FT):

    • Legal Basis: Quasi-judicial bodies established under the Foreigners (Tribunals) Order, 1964, issued under Section 3 of the Foreigners Act, 1946.
    • Purpose: Allows State authorities to refer cases of individuals suspected to be foreigners for determination.
    • Composition: Headed by members drawn from judges, advocates, or civil servants with judicial experience.
    • Powers: Possesses civil court powers-summoning individuals, examining on oath, and requiring document production.

    2) Are Foreigners Tribunals Only for Assam?

    • Nationwide Applicability: The 1964 Order applies across all of India, but FTs currently operate only in Assam.
    • Other States: Suspected illegal immigrants are dealt with by local courts under the Foreigners Act, 1946.
    • 2019 Amendment: Earlier only the Centre could set up FTs; after the amendment, states also have the power to establish them.

    3) Foreigners Tribunal – Functioning:

    • Notice Period: Tribunal must issue a notice to the suspected foreigner within 10 days of receiving a reference.
    • Response Time: The individual gets 10 days to reply, and another 10 days to submit supporting evidence.
    • Time for Disposal: Tribunal must dispose of cases within 60 days.
    • Outcome: If unable to prove citizenship, the person may be sent to a detention centre (transit camp) for future deportation.

    4) Immigration and Foreigners Order, 2025:

    • Replaces: Supersedes the Foreigners (Tribunal) Order, 1964 under the new Immigration and Foreigners Act, 2025.
    • New Powers:
      • FTs can now issue arrest warrants and detain individuals unable to prove citizenship-previously done through executive orders.
      • Warrants may be issued if a suspect fails to appear.
    • Expanded Judicial Authority: FTs now possess powers of:
      • A civil court under the Code of Civil Procedure, 1908.
      • A judicial magistrate (First Class) under Bharatiya Nagarik Suraksha Sanhita, 2023.
    • Key Powers Include:
      • Summoning and enforcing attendance.
      • Examining persons on oath.
      • Requiring discovery and production of documents.
      • Issuing commissions for witness examination.
      • Directing personal appearance.
      • Issuing arrest warrants for non-appearance.
    Ex-Parte Order:

    An ex parte decree is issued when a defendant fails to appear despite receiving summons, allowing the court to hear only the plaintiff’s case and pass a decision in the defendant’s absence.

     

    [UPSC 2009] Consider the following statements :

    1. Central Administrative Tribunal (CAT) was set up during the Prime Ministership of Lal Bahadur Shastri.

    2. The Members for CAT are drawn from both judicial and administrative streams.

    Which of the statements given above is/are correct ?

    Options: (a) 1 only (b) 2 only* (c) Both 1 and 2 (d) Neither 1 nor 2

     

  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    2.25 Crore Ineligible Beneficiaries removed  from Free Ration Scheme

    Why in the News?

    About 2.25 crore ineligible people were removed from the NFSA free ration list in the past 4–5 months to ensure benefits reach only rightful beneficiaries.

    About Free Ration Scheme:

    • Foodgrain Allocation: The scheme provides 5 kg of free foodgrains (wheat or rice) per person per month to poor households for basic sustenance.
    • Criteria for Ineligibility: Ineligible individuals included those owning four-wheelers, earning above the income threshold, holding company directorships, or deceased persons.
    • Verification Process: The Centre identified suspect entries and shared them with States for verification and deletion.
    • Role of State Governments: States are responsible for identifying beneficiaries, issuing ration cards, and continuously updating lists.
    • Current Coverage: The scheme currently covers around 80.56 crore people, with scope to add about 0.79 crore more beneficiaries.
    • Ration Card & Distribution Network: India has over 19 crore ration card holders and around 5 lakh fair price shops.
    • Beneficiary Categories:
      • Antyodaya Anna Yojana (AAY): 35 kg per household per month
      • Priority Households (PHH): 5 kg per person per month

    About National Food Security Act, 2013 (NFSA):

    • Enactment: NFSA was signed into law on 12 September 2013, with effect from 5 July 2013.
    • Coverage Goal: It aims to provide subsidized food grains to about two-thirds of India’s population, covering 75% rural and 50% urban populations.
    • Legal Entitlements: It converts food security schemes into legal entitlements for eligible households.
    • Subsidized Prices: Mandated Targeted Public Distribution System prices:
      • Rice – ₹3/kg
      • Wheat – ₹2/kg
      • Coarse grains – ₹1/kg
    • Household Head Provision: The eldest woman aged 18 or above in a household is designated as the head for issuing ration cards.
    • Nutritional Support: Pregnant women, lactating mothers, and children (6 months–14 years) receive free meals under ICDS and Mid-Day Meal schemes.
    • Maternity Benefits: Pregnant and lactating women are entitled to a ₹6,000 maternity benefit, paid in installments.
    • Entitlements Under NFSA:
      • Priority Households: 5 kg foodgrains per person per month
      • AAY Households: 35 kg per month
      • Universal coverage of ICDS and Mid-Day Meals
    [UPSC 2018] With reference to the provisions made under the National Food Security Act, 2013, consider the following statements:

    1. The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidies food grains.

    2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.

    3. Pregnant women and lactating mothers are entitled to a ‘take-home ration’ of 1600 calories per day during pregnancy and for six months thereafter.

    (a) 1 and 2 (b) 2 only* (c) 1 and 3 (d) 3 only

     

  • Seeds, Pesticides and Mechanization – HYV, Indian Seed Congress, etc.

    Centre plans to amend Protection of Plant Variety and Farmers’ Rights (PPV&F) Act, 2001

    Why in the News?

    The Union Agriculture Minister has confirmed that the Protection of Plant Varieties and Farmers’ Rights Act, 2001 (PPV&FRA) will be amended, with the Centre incorporating inputs from farmers, scientists, civil society, and industry.

    About the Protection of Plant Varieties and Farmers’ Rights Act (PPV&FRA), 2001:

    • Overview: India’s sui generis legislation protects the rights of plant breeders, farmers, and local communities while promoting innovation and conserving agrobiodiversity.
    • TRIPS Compliance: Designed as an alternative to restrictive Union for the Protection of New Varieties of Plants (UPOV) models, recognising farmers both as cultivators and as breeders with equal legal standing.
    • Key Features:
      • Institutional Framework: Established the PPV&FR Authority, National Register of Plant Varieties, and the National Gene Bank for long-term conservation.
      • Farmers’ Rights: Allows farmers to save, use, sow, resow, exchange, share, and sell seeds of protected varieties (except branded seeds) and register their own varieties.
      • Breeders’ Rights: Grants exclusive commercialisation rights over registered varieties, subject to benefit-sharing and statutory limitations.
      • DUS Testing: Registration based on Distinctness, Uniformity, Stability, with protection of 15 years for annuals and 18 years for trees and vines.
      • Compulsory Licensing: Ensures public access where breeders fail to provide seeds at fair prices or adequate quantities.
      • Community Benefits: Provides for benefit-sharing, recognition of traditional varieties, and safeguards against unfair claims on farmer-developed seeds.
      • Scope of Varieties: Covers new, extant, farmers’, and essentially derived varieties.

    What are the Proposed Amendments?

    • Redefinition of ‘Variety’: Broadened to include combinations of genotypes and vegetative propagules such as tubers, bulbs, rhizomes, roots, synthetic seeds, and tissue-culture plants, aligning with the Seeds Bill 2019.
    • Expanded Definition of ‘Seed’: Includes all planting materials and vegetatively propagated parts to harmonise India’s seed laws.
    • Clarifying ‘Breeder’ and ‘Institution’: Updated to formally recognise both public and private bodies as legitimate breeders.
    • Strengthening DUS Testing: Adds trait-based descriptors, greater transparency, and safeguards against misuse seen in cases like njavara paddy.
    • Defining “Abusive Acts”: Introduces penalties for selling varieties with identical denominations or misusing breeder rights to gain monopolistic control.
    • Community Seed Rights: Ensures that community-developed and traditional varieties cannot be appropriated by private entities.
    • Protection Against Misappropriation: Prevents registration of varieties already tested or conserved by farmers without disclosure or consent.
    • Farmer Compensation: Strengthens mechanisms for compensating farmers when registered varieties underperform compared to breeder claims.
    • Global Alignment: Follows negotiations under the International Plant Treaty (MLS), especially on in situ conservation and equitable sharing of genetic resources.
    [UPSC 2014]  In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/constraints in its wider/greater implementation?

    1. There is no National Seeds Policy in place.

    2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.

    3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

    Select the correct answer using the code given below.
    Options: (a)  1 and 2 only (b)  3 only* (c)  2 and 3 only (d)  None of the above

     

  • Seeds, Pesticides and Mechanization – HYV, Indian Seed Congress, etc.

    Centre releases draft Seeds Bill, 2025

    Why in the News?

    The Ministry of Agriculture and Farmers Welfare has released the Draft Seeds Bill, 2025 for public consultation before its introduction in Parliament.

    Precursor to the Draft Seeds Bill, 2025:

    • Seeds Act, 1966: Regulated seed production, certification, sale, and import/export through central and state seed committees and certification agencies.
    • Seeds (Control) Order, 1983: Added licensing requirements for dealers and expanded oversight of notified seeds.
    • Why Reform? Old laws could not address modern hybrids, biotechnology, private R&D, global seed trade, or digital traceability – creating the need for an updated, technology-ready statute.

    About the Draft Seeds Bill, 2025:

    • Objective: Ensure farmers get affordable, high-quality seeds while improving transparency and ease of doing business in the seed value chain.
    • Purpose: Replaces the Seeds Act, 1966 and Seeds (Control) Order, 1983 to regulate seed quality, curb spurious seeds, strengthen traceability, and modernise India’s seed sector.
    • Scope: Covers seed production, registration, import, sale, quality control, penalties, farmer rights, and digital monitoring.

    Key Provisions of the Draft Bill:

    • Farmer Rights: Farmers may grow, sow, save, use, exchange, share, or sell seeds of any registered variety from their own holdings, except when sold under a brand name.
    • Mandatory Registration of Varieties: All seed varieties meant for commercial sale must be registered (export-only and farmers’ own-use varieties exempt).
    • Registration of Seed Businesses: Producers (non-farmers), processing units, dealers, distributors, and nurseries must register with the designated authority.
    • Digital Traceability: Introduces a Central Seed Traceability Portal; seed packets must carry QR codes to monitor provenance and quality.
    • Graded Penalties: Trivial-to-major offences defined. Minor offences may get warnings; moderate offences attract fines up to ₹2 lakh; major offences (spurious/unregistered seeds) attract fines up to ₹30 lakh and/or imprisonment up to 3 years.
    • Seed Testing & Enforcement: Central and state seed labs can be established/recognised. Inspectors may sample, seize, inspect premises, and verify records.
    • Import Regulation: Imported seeds must meet germination and purity standards; trial and research imports require permits.
    • Ease of Doing Business: Minor offences decriminalised; compliance simplified while retaining strict penalties for serious violations.

    Key Differences: Seeds Act 1966 vs Draft Seeds Bill 2025

    Seeds Act, 1966 / Seeds (Control) Order, 1983 Draft Seeds Bill, 2025
    Farmer Rights Implicit, not clearly articulated Explicit protection to save, use, exchange, share, sell non-branded seeds
    Variety Registration Only notified varieties regulated Mandatory registration for all commercial varieties
    Business Registration Focus on producers/dealers Mandatory for producers, processors, dealers, distributors, nurseries
    Traceability No digital tracking provisions QR-based seed traceability via Central Seed Portal
    Penalties Limited, less structured Graded penalties; major offences up to ₹30 lakh + imprisonment
    Imports Narrow regulation; limited trial mechanisms Structured system for import, research, and trial evaluations
    Ease of Doing Business More regulatory rigidity Decriminalisation of minor offences and reduced compliance burden
    Technological Fit Pre-hybrid, pre-biotech era framework Aligned with modern hybrids, biotech seeds, global seed trade

     

  • RTI – CIC, RTI Backlog, etc.

    20 years of Right to Information (RTI)

    Why in the News?

    RTI activists across India marked 20 years since the Right to Information Act, 2005, came into effect.

    About the Right to Information (RTI) Act, 2005:

    • Overview: Passed by Parliament in 2005, replacing the Freedom of Information Act, 2002.
    • Objective: Empower citizens to access information freely from public authorities to promote openness and good governance.
    • Scope: Applicable to Central, State, and Local Governments, public sector undertakings, and statutory bodies.
    • Key Provision: Under Section 22, the RTI Act overrides all other laws that may restrict access to information.
    • Constitutional Basis:
      • It is derived from Article 19(1)(a), the Right to Freedom of Speech and Expression.
      • The Supreme Court has recognized access to information as implicit in freedom of expression.
      • Backed by Article 32 and Article 226, citizens can seek redress for violations through the Supreme Court and High Courts.
      • RTI upholds constitutional principles of equality (Article 14) and personal liberty (Article 21) by ensuring informed citizen participation.
    • Timeframe for Response:
      • 30 days in general cases.
      • 48 hours when life or liberty is involved.
    • Exemptions from Disclosure:
      • Section 8(1): Exempts disclosure of information that could compromise sovereignty, national security, strategic or economic interests, or affect foreign relations.
      • Section 8(2): Allows disclosure if public interest outweighs potential harm to protected interests.
      • Proactive Disclosure: Every public authority must digitize records and proactively publish information to minimize formal RTI requests.
    • RTI (Amendment) Act, 2019:
      • The amendment removed fixed tenure (5 years) and salary parity with Election Commissioners.
      • It vested powers in the Central Government to determine terms of service, tenure, and allowances for CIC and ICs.
      • This was viewed as reducing the institutional autonomy of the RTI framework, raising concerns among transparency advocates.

    Institutional Framework:

    1. Central Information Commission (CIC)

    • Composition: Chief Information Commissioner (CIC) + up to 10 Information Commissioners (ICs).
    • Appointment: By the President on recommendation of a committee comprising the Prime Minister (Chairperson), Leader of Opposition (Lok Sabha), and a Union Cabinet Minister.
    • Tenure: As prescribed by the Central Government or until 65 years of age, whichever is earlier.
    • Functions:
      • Inquire into complaints and appeals under RTI.
      • Exercise civil court powers for summoning witnesses or documents.
      • Conduct suo motu inquiries in cases of systemic non-compliance.
    1. State Information Commissions (SICs)

    • Composition: State Chief Information Commissioner + up to 10 Information Commissioners.
    • Appointment: By the Governor, based on recommendations from a committee chaired by the Chief Minister, along with the Leader of Opposition and a Cabinet Minister.
    • Qualifications: Persons of eminence in public life, not affiliated with political parties or profit-making roles.
    • Functions: Parallel to CIC at the state level, ensuring local compliance with RTI obligations.
    [UPSC 2019] There is a view that the Officials Secrets Act is an obstacle to the implementation of RTI Act. Do you agree with the view? Discuss.

    [UPSC 2018] The Right to Information Act is not all about citizens’ empowerment alone, it essentially redefines the concept of accountability.” Discuss.

     

  • Electoral Reforms In India

    The Constitution (130th Amendment) Bill, 2025

    Why in the News?

    The Union Home Minister is set to introduce three bills in the Lok Sabha to provide legal framework for removal of the Prime Minister, Union Ministers, Chief Ministers and Ministers in States and UTs who are “arrested and detained in custody on account of serious criminal charges.”

    Which are the three Bills?

    1. 130th Constitutional Amendment Bill, 2025 (discussed below)
    2. Jammu and Kashmir Reorganisation (Amendment) Bill, 2025 – Provides clarity on removal of CM and Ministers in J&K.
    3. Government of Union Territories (Amendment) Bill, 2025 – Defines similar provisions for Puducherry and other UTs.

    About the 130th Constitutional Amendment Bill, 2025:

    • Scope: Applies to Prime Minister, Chief Ministers, and Ministers at Union, State, and Union Territory levels.
    • Grounds for Removal: Arrest and detention for 30 consecutive days for an offense punishable by five years or more.
    • Reappointment: Possible after release from custody.
    • Objective: Prevent prolonged tenure of arrested leaders in office (e.g., recent case involving Delhi CM Arvind Kejriwal).

    Amendments proposed to the following Articles:

    Current Provision Limitation Changes Proposed
    Article 75 (Union – PM & Union Ministers) PM appointed by President; Ministers appointed on PM’s advice. They hold office during the pleasure of the President. Removal is political (loss of confidence, resignation, dismissal). No explicit mechanism to remove PM/Ministers if detained/arrested for long periods. New provision: If PM or any Union Minister is detained in custody for 30 consecutive days for a serious offense (≥5 years punishment), they must resign by 31st day or automatically cease to hold office. They may be reappointed after release.
    Article 164 (States – CM & State Ministers) CM appointed by Governor; Ministers appointed on CM’s advice. They hold office during the pleasure of the Governor. Council of Ministers collectively responsible to State Assembly. No clear rule for automatic removal if CM/Ministers remain in custody. Similar to Union level: If CM or Minister is detained in custody for 30 consecutive days under serious charges (≥5 years punishment), they automatically lose office. Reappointment allowed after release.
    Article 239AA (Union Territory of Delhi – CM & Ministers) Special status for Delhi (NCT). CM and Council of Ministers aid & advise LG. They hold office as per political responsibility to the Assembly. No explicit provision for automatic removal on detention. A new Section 5A to be inserted: CM/Ministers of NCT of Delhi cease office if detained for 30 days under serious charges (≥5 years). Reappointment possible after release.

    Rationale and Significance:

    • At present, the Constitution has no provision for automatic removal of ministers in custody.
    • Bill ensures that office bearers uphold public trust and do not undermine governance during detention.
    • The statement of objects emphasized that elected representatives must rise above political interests and maintain conduct beyond suspicion.
    • Promotes integrity of democracy by aligning ministerial positions with constitutional morality and accountability.
    [UPSC 2020] Consider the following statements:

    1. According to the Constitution of India, a person who is eligible to vote can be made a minister in a State for six months even if he/she is not a member of the Legislature of that State.

    2. According to the Representation of People Act, 1951, a person convicted of a criminal offence and sentenced to imprisonment for five years is permanently disqualified from contesting an election even after his release from prison.

    Options: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2*

     

  • Insolvency and Bankruptcy Code

    IBC Amendment Bill, 2025

    Why in the News?

    The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 was introduced in the Lok Sabha by Finance Minister to streamline insolvency, cut tribunal delays, and add new tools like creditor-led resolution and cross-border insolvency.

    About the Insolvency and Bankruptcy Code (IBC), 2016:

    • IBC is India’s bankruptcy law, covering corporate persons, partnership firms, and individuals.
    • Insolvency: Liabilities exceed assets; entity cannot meet obligations.
    • Bankruptcy: Legal declaration of inability to pay debts.
    • Objective: Time-bound, creditor-driven resolution to improve recovery and business confidence.
    • Regulating Authority: Insolvency and Bankruptcy Board of India (IBBI), a statutory body with members from Ministry of Finance, Ministry of Corporate Affairs, and Reserve Bank of India.
    • Adjudicating Authority:
      • National Company Law Tribunal (NCLT) for companies/LLPs.
      • Debt Recovery Tribunal (DRT) for individuals and partnership firms.

    Key Amendments Proposed in IBC (2025):

    • Creditor-Initiated Insolvency Resolution Process (CIIRP): Out-of-court creditor resolutions with NCLT approval; faster timelines and promoter involvement.
    • Group Insolvency: Joint proceedings for related companies to preserve asset value and cut costs (e.g., Videocon Group case).
    • Cross-Border Insolvency: Framework to handle overseas assets and debts, allowing Indian lenders access to foreign assets.
    • Pre-Packaged Insolvency (PPIRP): Faster, affordable restructuring route for Micro, Small, and Medium Enterprises (MSMEs) while operations continue.
    • Other Reforms: Segregated asset sales, more NCLT benches (now 16), extended claim timelines, sector-specific provisions, and debtor audits.

    Achievements of IBC:

    • Debt Resolution: Resolved ₹3.16 lakh crore in 808 cases since 2016 (CRISIL data).
    • Recovery Rate: Average recovery of 32% of admitted claims, 169% of liquidation value.
    • Comparison: Outperformed earlier mechanisms (DRT, SARFAESI Act, Lok Adalat) which achieved only 5–20% recovery.
    • Deterrence: Borrowers pre-settled ₹9 lakh crore debt to avoid IBC proceedings.
    • Large NPAs: Addressed RBI’s “Dirty Dozen” cases like Bhushan Steel, Essar Steel, Jaypee Infratech.

     

    [UPSC 2017] Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

    Options: (a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

    (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

    (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

    (d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government. *

     

  • Port Infrastructure and Shipping Industry – Sagarmala Project, SDC, CEZ, etc.

    Parliament passes Carriage of Goods by Sea Bill, 2025

    Why in the News?

    Parliament has passed the Carriage of Goods by Sea Bill, 2025, replacing the nearly century-old Indian Carriage of Goods by Sea Act, 1925.

    About Carriage of Goods by Sea Bill, 2025:

    • Replaces: The colonial-era Indian Carriage of Goods by Sea Act, 1925.
    • Purpose: Regulates the rights, duties, liabilities, and immunities of parties involved in shipping goods by sea from Indian ports to domestic or international destinations.
    • International Alignment: Retains consistency with the Hague Rules (1924), which also formed the basis of the 1925 Act.
    • Objective: Modernises maritime law in line with global standards and boosts India’s ease of doing business in the maritime sector.

    Key Features:

    • Bills of Lading Defined: It outlines the details of the shipment, including the type and quantity of goods, the origin and destination, and the terms of the agreement between the shipper and the carrier.
      • Includes details on goods’ type, quantity, condition, and destination.
      • Serves as a legally binding contract between the shipper and carrier.
    • Central Government Powers:
      • May issue directions for implementation.
      • Can amend the Schedule of Rules related to bills of lading.
    • Part of Broader Maritime Reforms:
      • Supports port development and coastal trade.
      • Encourages creation of State Maritime Boards and a Maritime State Development Council.
      • Covers port safety, disaster response, pollution control, and dispute resolution.
    • Global Compliance: Aligns India’s shipping laws with evolving international conventions and practices.
    [UPSC 2016] The term ‘import cover’, sometimes seen in the news, refers to

    (a) It is the ratio of value of imports to the Gross Domestic Product of a country

    (b) It is the total value of imports of a country in a year

    (c) It is the ratio between the value of exports and that of imports between two countries

    (d) It is the number of months of imports that could be paid for by a country’s international reserves*