| Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Shreya Singhal Case

Mains level: Section 66A

Six years after it struck down Section 66A of the Information Technology Act, 2000, the Supreme Court earlier this month termed its continued use by law enforcement agencies of various states as “a shocking state of affairs” and sought a response from the Centre.

What did Section 66A do?

Introduced in 2008, the amendment to the IT Act, 2000, gave the government power to arrest and imprison an individual for allegedly “offensive and menacing” online posts, and was passed without discussion in Parliament.
Section 66A empowered police to make arrests over what policemen, in terms of their subjective discretion, could construe as “offensive” or “menacing” or for the purposes of causing annoyance, inconvenience, etc.
It prescribed the punishment for sending messages through a computer or any other communication device like a mobile phone or a tablet, and a conviction could fetch a maximum of three years in jail.
In 2015, the apex court struck down the law in the landmark case Shreya Singhal v. Union of India, calling it “open-ended and unconstitutionally vague”, and thus expanded the contours of free speech to the Internet.

Why was the law criticized?

The problem was with the vagueness about what is “offensive”.
The word having a very wide connotation was open to distinctive, varied interpretations.
It was seen as subjective, and what might have been innocuous for one person, could lead to a complaint from someone else and, consequently, an arrest arbitrarily.

So, how did 66A come under the Supreme Court’s scrutiny?

The first petition came up in the court following the arrest of two girls in Maharashtra by Thane Police in November 2012 over a Facebook post.
The girls had made comments on the shutdown of Mumbai for the funeral of a political leader.
The arrests triggered outrage from all quarters over the manner in which the cyber law was used.
The petition was filed by Shreya Singhal, then a 21-year-old law student.

What were the grounds for the challenge?

The objective behind the 2008 amendment was to prevent the misuse of information technology, particularly through social media.
The petitioners argued that Section 66A came with extremely wide parameters, which allowed whimsical interpretations by law enforcement agencies.
Most of the terms used in the section had not been specifically defined under the Act.
The law was a potential tool to gag legitimate free speech online and to curtail freedom of speech and expression guaranteed under the Constitution, going far beyond the ambit of “reasonable restrictions” on that freedom.

What did the Supreme Court decide?

In March 2015, a bench of Justices J. Chelameswar and R.F. Nariman ruled in Shreya Singhal v. Union of India declared Section 66A unconstitutional for “being violative of Article 19(1)(a) and not saved under Article 19(2).”
Article 19(1)(a) gives people the right to speech and expression whereas 19(2) accords the state the power to impose “reasonable restrictions” on the exercise of this right.
The decision was considered a landmark judicial pushback against state encroachment on the freedom of speech and expression.
The bench also read down Section 79– now at the centre of the ongoing “intermediary liability” battle between the Centre and micro-blogging platform Twitter– defining key rules for the relationship between governments and commercial internet platforms.
Section 79 says that any intermediary shall not be held legally or otherwise liable for any third party information, data, or communication link made available or hosted on its platform.

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Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Draft Drone Rules, 2021

Bills/Act/Laws | Governance | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Draft Drone Rules, 2021

The Ministry of Civil Aviation has released Draft Drone Rules, 2021, for public consultation. The rules will replace the Unmanned Aircraft System Rules, 2021.

Highlights of the Draft Drone Rules 2021

Number of forms: The rules propose to reduce the number of forms required for manufacturing, importing, testing, certifying and operating drones in India from 25 to six.

Abolishing authorization number: The draft seeks to abolish the unique authorisation number, unique prototype identification number, and certificate of conformance that were previously required for approval of drone flights.

Digital Sky Platform: Digital Sky, a platform launched by the government in December 2018, will become a single-window system for all approvals under the newly proposed rules.

Airspace map: An airspace map segregating the entire landmass of India into Green, Yellow and Red zones will be published on the platform within 30 days of notification of the new rules, the government said. The map will also be machine-readable through an Application Programming Interface (API) for easier plotting of drone flight paths.

Airport Perimeter: The draft rules reduced the airport perimeter from 45 km to 12 km. The rules state that no flight permissions would be required to fly up to 400 feet in green zones and up to 200 feet in the area between 8 and 12 km from the airport perimeter.

Drone corridors: The government will also publish a policy framework for Unmanned Aircraft System Traffic Management (UTM) within 60 days of notifying the rules. This will also include frameworks for developing “drone corridors” for the safe transfer of goods by drones.

Drone Promotion Council: The Rules also propose the setting up of a Drone Promotion Council, with the aim of facilitating a business-friendly regulatory regime for drones in India, the establishment of incubators for developing drone technologies and organizing competitive events to showcase drones and counter-drone solutions.

Others: To implement safety features such as “no permission, no take-off”, real-time tracking and geofencing, drone manufacturers, importers and operators will get six months’ time to comply from the date of notification of the rules.

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Modern Indian History-Events and Personalities

When were Tilak and Gandhi tried under the Sedition Law?

Prelims Only | | Mains Paper 1: Modern Indian History

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Sedition in colonial times

Mains level: Not Much

Recently, Chief Justice of India N V Ramana observed that the “colonial law” was used by the British to silence Mahatma Gandhi and Bal Gangadhar Tilak.

Must read:

Sedition Law and its discontents

Use of sedition law through history

According to the LOC blog, the first known instance of the application of the law was the trial of newspaper editor Jogendra Chandra Bose in 1891.
Other prominent examples of the application of the law include the trials of Tilak and Gandhi.
Apart from this, Jawaharlal Nehru, Abul Kalam Azad and Vinayak Damodar Savarkar were also charged with sedition.

When was sedition law used against Gandhi and Tilak?

In 1922, Gandhi was arrested on charges of sedition in Bombay for taking part in protests against the colonial government.
He was sentenced to six years in prison but was released after two years because of medical reasons.
Before Gandhi, Tilak faced three trials in cases related to sedition and was imprisoned twice.
He was charged with sedition in 1897 for writing an article in his weekly publication called Kesari and was sentenced to 12 months imprisonment.
He has tried again in 1908 and was represented by MA Jinnah. But his application for bail was rejected and he was sentenced to six years.
The second time he was tried was also because of his writings, one of which referred to the murder of European women in Muzzafarpur when bombs were thrown by Bengali revolutionaries.
Interestingly, the judge who announced Tilak’s sentence in the second trial, Justice DD Davar, had represented him in his first trial in 1897.

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Digital India Initiatives

[pib] Kisan Sarathi Platform

PIB | Economics | Mains Paper 3: E-Technology In The Aid Of Farmers

In order to facilitate farmers to get ‘right information at right time’ in their desired language, a digital platform namely ‘Kisan Sarathi’ was launched by the Ministry of Agriculture and Farmers Welfare.

Kisan Sarathi

This digital platform empowers farmers with the technological interventions to reach farmers in remote areas.
Through this platform, the farmers can interact and avail personalized advisories on agriculture and allied areas directly from the respective scientists of Krishi Vigyan Kendra (KVKs).
Using this platform, farmers can get information about crop and crop production, among other things that will help them in improving the quantity of their produce.
Farmers will be able to get information about good crop practices, the right amount of products and many other basic things.

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Police Reforms – SC directives, NPC, other committees reports

Interference an investigating officer can do without

op-ed snap | Polity | Mains Paper 2: Executive & Judiciary

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Judicial interference in investigation

Context

Instances of judiciary directing the investigating officer point to the need for restraint from the judiciary.

Challenging the discretion of investigating officer

There have been growing instances of subordinate judicial officers, and even High Courts sometimes, directing the investigating officer to effect the arrest of a particular individual.
To deal with the issue, the Supreme Court of India recently made the observation that courts have no authority to direct an investigating officer to in turn direct the arrest of any particular individual connected with a crime
This points to the need for a slightly kindlier view of police conduct and more latitude to them in the standard operating procedures which they follow, especially when they investigate a complicated crime.
The Code of Criminal Procedure (CrPC) vests sufficient discretion in the investigating officer to take such decisions as arrests and searches.

Issues with court’s directions

Court observations that smack of a lack of faith in police ability and integrity will make grass-root level policemen even more arbitrary than now and force them into carrying out questionable actions that will cast aspersions on an officer’s ability to think for himself.
Court interference in the day-to-day investigation is not only undesirable but is also not sanctioned by law.
Only the Supreme Court, has been vested with enormous authority and discretion by the Constitution, the lesser courts shall not give directions in the matter of arrests and searches.

Safeguard against police misconduct

We need to educate the Executive and the common man that it is now well-established law that the police have to register an FIR.
It is mandatory that every police station in the land should register a complaint under the relevant sections of a statute the moment a cognisable offence is made out in the complaint
There is another safeguard against police misconduct.
The CrPC makes it obligatory for the investigating officer to write a diary that details the action taken every day following registration.
When in doubt, the competent court, which already has a copy of the first information report, can demand to see the case diary.
Courts should remember that the police are a well-established hierarchy that is obligated to ensure objectivity during a criminal investigation.
Every investigation is supervised by at least two immediate senior officers.

Conclusion

Judicial interference in an investigation is counterproductive to the idea of justice. Therefore, there is a need for allowing more freedom to the investigating officers in the standard operating procedure that they follow.

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Addressing claims of backwardness by various politically powerful castes

op-ed snap | Polity | Mains Paper 2: Executive & Judiciary,Government Scheme/Policies

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Social backwardness

Mains level: Paper 2- Claim of backwardness and challenges

Context

Two rulings of the Supreme Court have frayed nerves in Maharashtra on the broader question of “reservation”. The other pertains to OBC reservation in local bodies. Both issues have relevance beyond Maharashtra.

Challenges in addressing the demand for reservation

Lack of quantitative data: The issue of actual numbers or population share of OBCs has been talked about for over a decade.
Besides, there is a need to understand the socio-economic situation of different backward communities.
In the last instance, we have to decide which groups are backward and what needs to be done for them.
The political class have consistently avoided the juridical reality.

Consensus between judiciary and political class

That consensus after implementation of Mandal commission recommendation had three dimensions:
1) Accepting that caste is the main cause of tradition-born backwardness among a large section of the population.
2) Resorting to “reservation” as the easiest policy response.
3) Recognising and accommodating the political aspirations of the backward sections by expanding the social base of the political elite.
But this resulted in the current deadlock on the question of social justice.
Today, not only the Marathas, but Jats and Patidars, too, claim that vast numbers among them have been left behind in the contemporary economy.
These demands have deflected attention from two matters.
1) That the enabling provision of the Constitution aims at social backwardness (caused by societal location).
2) That the causes of economic distress originating in development policies are distinct from backwardness primarily originating in caste location.
Granting reservations on an economic basis seems to have complicated matters.

Five reservation-related issues gaining renewed urgency

Intra-OBC differentiations: This issue was already raised by a member of the Mandal Commission itself.
Most states have failed to come up with an effective arrangement to addressing the issue.
The Centre is currently waiting for a report on this question.
Intra-caste stratification: Intra-caste stratification is increasing — something that was rather limited at the time of Mandal.
What sociologist D L Sheth called as classification is now becoming the central issue, with many complications.
Advantages and logic: The third question is about the specific advantages and logic of reservation in the three different arenas of employment, education and political representation.
Limits of reservation: There is need to discuss the limits of reservation and the need to think of additional measures to augment the policy of social justice.
Setting boundaries: With such widespread poverty and suffering, how do we distinguish between backwardness primarily caused by a group’s social location in traditional social order and backwardness resulting from distortions of the political economy?
Unless we grapple with this question, reservation is bound to remain a contentious issue.

Way forward

The above questions are best left ideally to a third backward classes commission whose time has come.
Removing the 50 per cent cap legislatively needs to be considered.

Conclusion

We need to devise a mechanism to verify the claims of backwardness to address the increasing demands for reservation from the politically strong section of society.

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Foreign Policy Watch: India-Afghanistan

Explained: India’s Afghan investment

| International Relations | Mains Paper 2: India & Its Neighborhood - Relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Read the attached story

Mains level: India-Afghan relations

As the Taliban push ahead with military offensives across Afghanistan, preparing to take over after the exit of US and NATO forces, India faces a situation in which it may lose all its stakes.

India-Afghan ties

After a break between 1996 and 2001, when India joined the world in shunning the previous Taliban regime (only Pakistan, the UAE, and Saudi Arabia kept ties).
One-way New Delhi re-established ties with the country in the two decades after the 9/11 attacks was to pour in development assistance, under the protective umbrella of the US presence.
India built vital roads, dams, electricity transmission lines and substations, schools and hospitals, etc. India’s development assistance is now estimated to be worth well over $3 billion.
And unlike in other countries where India’s infrastructure projects have barely got off the ground or are mired in the host nation’s politics, it has delivered in Afghanistan.

A soft corner

Afghanistan is vital to India’s strategic interests in the region.
It is also perhaps the only SAARC nation whose people have much affection for India.
Taliban takeover would mean a reversal of nearly 20 years of rebuilding a relationship that goes back centuries.

Projects across the country

[1] SALMA DAM

Already, there has been fighting in the area where one of India’s high-visibility projects is located — the 42MW Salma Dam in Herat province.
The hydropower and irrigation project, completed against many odds and inaugurated in 2016, is known as the Afghan-India Friendship Dam.
In the past few weeks, the Taliban have mounted attacks in nearby places, killing several security personnel.
The Taliban claim the area around the dam is now under their control.

[2] ZARANJ-DELARAM HIGHWAY

The other high-profile project was the 218-km Zaranj-Delaram highway built by the Border Roads Organisation. Zaranj is located close to Afghanistan’s border with Iran.
With Pakistan denying India overland access for trade with Afghanistan, the highway is of strategic importance to New Delhi, as it provides an alternative route into landlocked Afghanistan through Iran’s Chabahar port.

[3] AFGHAN PARLIAMENT

The Afghan Parliament in Kabul was built by India at $90 million.
It was opened in 2015; PM Modi inaugurated the building.
A block in the building is named after former PM AB Vajpayee.

[4] STOR PALACE

In 2016, Afghan President Ashraf Ghani and PM Modi inaugurated the restored Stor Palace in Kabul, originally built in the late 19th century.
It is famous for the 1919 Rawalpindi Agreement by which Afghanistan became an independent country.

[5] POWER INFRA

Other Indian projects in Afghanistan include the rebuilding of power infrastructure such as the 220kV DC transmission line from Pul-e-Khumri, the capital of Baghlan province to the north of Kabul.
Indian contractors and workers also restored telecommunications infrastructure in many provinces.

[6] HEALTH INFRA

India has reconstructed a children’s hospital it had helped build in Kabul in 1972 —named Indira Gandhi Institute for Child Health in 1985 — that was in shambles after the war.
‘Indian Medical Missions’ have held free consultation camps in several areas.
Thousands who lost their limbs after stepping on mines left over from the war have been fitted with the Jaipur Foot.
India has also built clinics in the border provinces of Badakhshan, Balkh, Kandahar, Khost, Kunar, Nangarhar, Nimruz, Nooristan, Paktia and Paktika.

[7] TRANSPORTATION

According to the MEA, India gifted 400 buses and 200 mini-buses for urban transportation, 105 utility vehicles for municipalities, 285 military vehicles for the Afghan Army.
It also gave three Air India aircraft to Ariana, the Afghan national carrier, when it was restarting operations.

[8] OTHER PROJECTS

India has contributed desks and benches for schools, and built solar panels in remote villages, and Sulabh toilet blocks in Kabul.
New Delhi has also played a role in building capacity, with vocational training institutes, scholarships to Afghan students, mentoring programmes in the civil service, and training for doctors and others.

Various ongoing project

India had concluded with Afghanistan an agreement for the construction of the Shatoot Dam in Kabul district, which would provide safe drinking water to 2 million residents.
Last year, India pledged $1 million for another Aga Khan heritage project, the restoration of the Bala Hissar Fort south of Kabul, whose origins go back to the 6th century.
Bala Hissar went on to become a significant Mughal fort, parts of it were rebuilt by Jahangir, and it was used as a residence by Shah Jahan.

Bilateral trade

Despite the denial of an overland route by Pakistan, the India-Afghanistan trade has grown with the establishment in 2017 of an air freight corridor.
In 2019-20, bilateral trade crossed $1.3 billion.
The balance of trade is heavily tilted — exports from India are worth approximately $900 million, while Afghanistan’s exports to India are about $500 million.
Afghan exports are mainly fresh and dried fruit.
Some of this comes overland through the Wagah border; Pakistan has permitted Afghan trade with India through its territory.
Indian exports to Afghanistan take place mainly through government-to-government contracts with Indian companies.
Exports include pharmaceuticals, medical equipment, computers and related materials, cement, and sugar.
Trade through Chabahar started in 2017 but is restricted by the absence of connectivity from the port to the Afghan border.

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Freedom of Speech – Defamation, Sedition, etc.

Sedition Law and its discontents

| Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Freedom of Speech

Mains level: Sedition law and Free speech

The CJI is now convinced that sedition law (IPC 124A) is being misused by the authorities to trample upon citizens’ fundamental rights of free speech and liberty.

What does Section 124A of the IPC say?

The section deals with the offence of sedition, a term that covers speech or writing, or any form of visible representation, which brings the government into hatred or contempt, or excites disaffection towards the government, or attempts to do so.
It is punishable with three years in prison or a life term.
“Disaffection”, it says, includes disloyalty and feelings of enmity.
However, it also says expressing disapproval of government measures or actions, with a view to getting them changed by lawful means, without promoting hatred or disaffection or contempt towards the government will not come under this section.

What is its origin?

Colonial past: Sedition was introduced in the penal code in 1870, a decade after the Indian Penal Code came into force.
It was a colonial law directed against strong criticism of the British administration.
Putting curb on Freedom fighters: Its most famous victims included Bal Gangadhar Tilak and Mahatma Gandhi.
Gandhi called it “the prince among the political sections of the IPC designed to suppress the liberty of the citizen”.

Is it constitutionally valid?

Violative of FRs: Two high courts had found it unconstitutional after Independence, as it violated the freedom of speech and expression.
Reasonable restrictions: The Constitution was amended to include ‘public order’ as one of the ‘reasonable restrictions’ on which free speech could be abridged by law.
Kedar Nath Case: Thereafter, the Supreme Court, in Kedar Nath Singh v. State of Bihar (1962) upheld its validity.
At the same time, it limited its application to acts that involve “intention or tendency to create disorder” or incitement to violence.
Thus, even strongly worded remarks, as long as they do not excite disloyalty and enmity, or incite violence, are not an offence under this section.

Why the controversy now?

Frequent use: In recent times, the resort to this section is seen as disturbingly frequent.
Curbing dissent: Activists, cartoonists and intellectuals have been arrested under this section, drawing criticism from liberals that it is being used to suppress dissent and silence critics.
Misuse for propaganda: Authorities and the police who invoke this section defend the measure as a necessary step to prevent public disorder and anti-national activities.
Irrelevance: Many of them have also been detained under the National Security Act and UAPA.

What is being debated about it?

Liberals and rights activists have been demanding the scrapping of Section 124A.
It is argued that the provision is “overbroad”, i.e., it defines the offence in wide terms threatening the liberty of citizens.
The Law Commission has also called for a reconsideration of the section.
It has pointed that Britain abolished it more than a decade ago and raised the question of whether a provision introduced by the British to put down the freedom struggle should continue to be law in India.
Some argue that a presumption of constitutionality does not apply to pre-constitutional laws as those laws have been made by foreign legislature or bodies.

What has the apex court observed?

Justice D.Y. Chandrachud had flagged the indiscriminate use of the sedition law against people who aired their grievances about the government’s COVID management.
People have been charged even for seeking help to gain medical access, equipment, drugs and oxygen cylinders, especially during the second wave of the pandemic.
Justice U.U. Lalit, in his recent judgment, quashed a sedition case against a person for his alleged remarks about the PM and the Union Government.

Way forward

The time is long past when the mere criticism of governments was sufficient to constitute sedition.
The right to utter honest and reasonable criticism is a source of strength to a community rather than a weakness, the CJI has recorded.

Try answering this PYQ:

Q.With reference to Rowlatt Satyagraha, which of the following statements is/are correct?

The Rowlatt Act was based on the recommendations of the ‘Sedition Committee’.
In Rowlatt Satyagraha, Gandhiji tried to utilize the Home Rule League.
Demonstrations against the arrival of Simon Commission coincided with Rowlatt Satyagraha.

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

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Parliament – Sessions, Procedures, Motions, Committees etc

What is Adjournment Motion?

| Polity | Mains Paper 2: Parliament & State Legislatures

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Adjournment motion

Mains level: Devices of parliamentary control

Ahead of the Monsoon session of Parliament, a political party from Punjab has decided to move an adjournment motion in the Lok Sabha against the government on the three controversial farm laws.

Revise all the devices of parliamentary proceedings from your Polity Book.

Recalling the three laws

Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020
Essential Commodities (Amendment) Act, 2020

[Burning Issue] Agricultural Reform Bills, 2020

What is Adjournment Motion?

Adjournment motion is aimed to draw the attention of the House to a recent matter of urgent public importance having serious consequences.
The matter proposed to be raised should be of such a character that something very grave which affects the whole country and its security has happened.
The House is required to pay its attention immediately by interrupting the normal business of the House.
It can introduce only in the Lok Sabha.
It involves an element of censure against the government, therefore Rajya Sabha is not permitted to make use of this device.
In the event of an adjournment motion being adopted, the House automatically stands adjourned.

How it is held?

It is regarded as an extraordinary device as it interrupts the normal business of the House.
It needs the support of 50 members to be admitted.
The notice of an adjournment motion is required to be given on the prescribed form.
A member can give not more than one notice for any one sitting.
The discussion on this motion should last for not less than two hours and thirty minutes.

Restrictions to the motion

The right to move a motion for an adjournment of the business of the House is subject to the following restrictions. It should:

Not raise a question of privilege.
Not revive discussion on a matter that has been discussed in the same session.
Not deal with any matter that is under adjudication of court.
Not raise any question that can be raised on a distinct motion.

Answer this PYQ in the comment box:

Q.The Parliament of India exercises control over the functions of the Council of Ministers through:

Adjournment motion

Question hour

Supplementary questions

Select the correct answer using the code given below: (CSP 2017)

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 2 and 3 only

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Why the Amazon forests are no longer acting as a carbon sink

Prelims Only | Enviro & Biodiversity | Mains Paper 1: Climatic Change

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Amazon forests

Mains level: Climate Change

The Amazon forests in South America, which are the largest tropical forests in the world, have started emitting carbon dioxide (CO2) instead of absorbing carbon emissions.

Note the countries bordered by the Amazon forests.

Amazon forests

The Amazon rainforest is a moist broadleaf tropical rainforest in the Amazon biome that covers most of the Amazon basin of South America.
This basin encompasses 7,000,000 sq km of which 5,500,000 sq km are covered by the rainforest.
The majority of the forest is contained within Brazil, with 60% of the rainforest, followed by Peru with 13%, Colombia with 10%, and with minor amounts in Bolivia, Ecuador, French Guiana, Guyana, Suriname, and Venezuela.
It represents over half of the planet’s remaining rainforests and comprises the largest and most biodiverse tract of tropical rainforest in the world.

Why in news?

A significant amount of deforestation in eastern and southeastern Brazil has turned the forest into a source of CO2 that has the ability to warm the planet.
Not only the Amazon rainforests, some forests in Southeast Asia have also turned into carbon sources in the last few years as a result of the formation of plantations and fires.

What have the researchers found?

Over the years as fossil-fuel emissions across the world have increased, the Amazon forests have absorbed CO2 from the atmosphere, helping to moderate the global climate.
But researchers are not saying that because of significant levels of deforestation (over the course of 40 years) there has been a long-term decrease in rainfall and increase in temperatures during the dry season.
Because of these reasons the eastern Amazon forests are no longer carbon sinks, whereas the more intact and wetter forests in the central and western parts are neither carbon sinks nor are they emitters.
Another reason for the eastern region not being able to absorb as much CO2 as it did previously is the conversion of forests into agricultural land.

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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

What are Doppler Radars?

Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Doppler Radar

Mains level: Not Much

The India Meteorological Department’s (IMD) Doppler Radar in Mumbai, which surveys weather patterns and forecasts, stopped working after heavy rainfalls.

How does a Doppler radar work?

In radars, a beam of energy– called radio waves– is emitted from an antenna.
When this beam strikes an object in the atmosphere, the energy scatters in all directions, with some reflecting directly back to the radar.
The larger the object deflecting the beam, the greater is the amount of energy that the radar receives in return.
Observing the time required for the beam to be transmitted and returned to the radar allows weather forecasting departments to “see” raindrops in the atmosphere, and measure their distance from the radar.

What makes a Doppler radar special?

It can provide information on both the position of targets as well as their movement.
It does this by tracking the ‘phase’ of transmitted radio wave pulses; phase meaning the shape, position, and form of those pulses.
As computers measure the shift in phase between the original pulse and the received echo, the movement of raindrops can be calculated.
Thus it is possible to tell whether the precipitation is moving toward or away from the radar.

Types of Doppler radar

In India, Doppler radars of varying frequencies — S-band, C-band and X-band — are commonly used.
They help track the movement of weather systems and cloud bands and gauge rainfall over its coverage area of about 500 km.
The radars guide meteorologists, particularly in times of extreme weather events like cyclones and associated heavy rainfall.
An X-band radar is used to detect thunderstorms and lightning whereas C-band guides in cyclone tracking.

Why are they called ‘Doppler’ radars?

The phase shift in these radars works on the same lines as the “Doppler effect” observed in sound waves.
It tells that the sound pitch of an object approaching the observer is higher due to the compression of sound waves (a change in their phase).
As this object moves away from the observer, the sound waves stretch, resulting in lower frequency.
This effect explains why an approaching train’s whistle sounds louder than the whistle when the train moves away.
The discovery of the phenomenon is attributed to Christian Doppler, a 19th-century Austrian physicist.

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Issues with coercive Population Policy

op-ed snap | Governance | Mains Paper 2: Government Scheme/Policies

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Right to reproductive freedom

Mains level: Paper 2- Coercive policy measures to control population

Context

Recently, the government of Uttar Pradesh released a “Population Policy” in which it stated its intention to bring the gross fertility rate in the State down from the existing 2.7 to 2.1 by 2026.

Provisions in the Bill

This draft law, titled the Uttar Pradesh Population (Control, Stabilisation and Welfare) Bill, 2021, seeks to provide a series of incentives to families that adhere to a two-child norm.
The Bill also intends on disentitling families that breach the norm from benefits and subsidies.
It promises public servants who undergo sterilisation and adopt a two-child norm several benefits.
The draft Bill also contains a list of punishments.
A person who breaches the two-child norm will be debarred from securing the benefit of any government-sponsored welfare scheme and will be disqualified from applying to any State government job.
Existing government employees who infringe the rule will be denied the benefit of promotion.
Transgressing individuals will be prohibited from contesting elections to local authorities and bodies.

Issues with coercive population control policies

1) Counter-productive measure

Through an affidavit filed in court, the central government argued that “international experience shows that any coercion to have a certain number of children is counter-productive and leads to demographic distortions”.

2) Against international obligations

India is committed to its obligations under international law, including the principles contained in the International Conference on Population and Development Programme of Action, 1994.
Foremost in those principles was a pledge from nations that they would look beyond demographic targets and focus instead on guaranteeing a right to reproductive freedom.

3) Against right to reproductive freedom and privacy

In Suchita Srivastava & Anr vs Chandigarh Administration (2009), the Court found that a woman’s freedom to make reproductive decisions is an integral facet of the right to personal liberty guaranteed by Article 21.
This ruling was endorsed by the Supreme Court’s nine-judge Bench verdict in K.S. Puttaswamy vs Union of India (2017).
A reading of the plurality of opinions there shows us that the Constitution sees a person’s autonomy over her body as an extension of the right to privacy.
A simple reading of U.P.’s draft law will show us that, if enacted, it will grossly impinge on the right to reproductive freedom.
However, In Javed & Ors vs State of Haryana & Ors (2003), the Court upheld a law that disqualified persons with more than two children from contesting in local body elections.
But the present UP Bill is far more disproportionate, therefore, the judgment in Javed can no longer be seen as good law.
The UP government will likely argue that there is no violation of privacy here because any decision on sterilisation would be voluntary.
But, as we ought to by now know, making welfare conditional is a hallmark of coercion.
Therefore, the proposed law will fall foul of a proportionality analysis.

4) Negative consequences

An already skewed sex ratio may be compounded by families aborting a daughter in the hope of having a son with a view to conforming to the two-child norm.
The law could also lead to a proliferation in sterilisation camps, a practice that the Supreme Court has previously deprecated.
In Devika Biswas vs Union of India (2016), the Court pointed to how these camps invariably have a disparate impact on minorities and other vulnerable groups.

Way forward

Experiences from other States in India show us that there are more efficacious and alternative measures available to control the growth of population, including processes aimed at improving public health and access to education.

Conclusion

For one thing, the reasoning of the Bill goes against the Puttaswamy case. But as rousing as the nine-judge Bench verdict is, its legacy depends on how its findings are applied.

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e-Commerce: The New Boom

The proposed e-commerce rules shield vested interests

op-ed snap | | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Inventory model vs marketplace model

Mains level: Paper 3- Issues with regulation of e-commerce

Context

The proposed Consumer Protection (E-Commerce) Rules, 2020, have been drafted ostensibly in the name of the consumer. The rules are driven more by the desire to shield the traditional brick-and-mortar stores, and handicap e-commerce firms, especially the foreign ones.

Issues with the provisions of draft Consumer Protection (E-Commerce) Rules, 2020

1) Fall-back liability clause is unfair for those operating through marketplace model

Under this provision, e-commerce entities will be liable in case suppliers on the platform fail to deliver the goods to consumers, causing them a loss.
E-commerce firms in India operate through either the inventory model or the marketplace model.
As FDI is permitted only in the marketplace model.
Under the marketplace model, e-commerce platforms don’t hold inventory, but simply connect buyers and sellers.
Foreign players typically operate through this model.
Considering that these platforms exercise little or no control over the inventory under this model, how can they be held liable for the sellers’ actions.

2) Identifying goods based on country of origin and providing fair opportunity to domestic sellers

The draft rules also require e-commerce platforms to identify goods based on their country of origin.
And when goods are being viewed for purchase by consumers, the rules also mandate platforms to provide suggestions to ensure “fair opportunity” for domestic sellers.
This raises the question as to why the Make in India campaign is being pushed through the Consumer Protection Act.
Surely, if domestic manufacturers are competitive, consumers will automatically gravitate towards them.
Interests of consumers, not domestic manufacturers, should be at the core of the consumer protection framework.

3) Overlapping/competing jurisdictions

Data protection: The draft rules have sought to safeguard consumer data by restraining e-commerce firms from sharing consumer data without consent.
But the data protection should be governed by the provisions under the Personal Data Protection Bill and not the Consumer Protection Act.
Considering the graded approach that is likely to be adopted under the Data Protection Bill, an e-commerce user’s data could be classified as per its vulnerability and be left under the jurisdiction of the data protection authority.
Dominant position: The rules also state that e-commerce entities are prohibited from abusing their dominant positions in the market.
The “abuse of dominant position” has been given the same meaning as that prescribed under Section 4 of the Competition Act, 2002.
This will open the scope for new consumer protection authority to enter into issues of abuse of dominant position — the domain of the Competition Commission of India.

Consider the question “Over-regulation tends to curb competition and create monopolies instead of ensuring its holistic growth dovetailed with fair competition. In light of this, examine the issues with the draft Consumer Protection (E-Commerce) Rules, 2020?”

Conclusion

The lines of demarcation that have been drawn up in the retail landscape — single brand vs multi-brand, online vs offline, domestic vs foreign — serve only to protect powerful vested interests, not benefit the consumer as is often proclaimed.

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Amnesty Scheme for violators of Environment Norms

| Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: EIA

Mains level: Loopholes in EIA

The union environment ministry has put together an amnesty scheme for infrastructure and industrial projects that have violated environmental clearance (EC) norms for Environment Impact Assessment.

What is the Scheme?

The new amnesty scheme empowers regulatory institutions at both central and state levels:

(1) To identify and report cases of violation

It refers to identify, examine and appraise violation projects, refraining from causing further environmental damage and also compensating for causing damage to the environment.

(2) To take action against violators in terms of closure or demolition of a project

It defines three different actions to be taken for the violation projects depending upon their EC status.
In case the project has not obtained EC, it will be ordered to close its operations.
If the project has undergone expansion without obtaining EC for the expanded portion, it will be ordered to revert the activity/production to the limit granted in the existing EC.

(3) To levy penalty on them that is akin to the scale of the project

It entitles the regulatory authorities to levy penalties on the proponent, in addition to the bank guarantee.

Issues with the scheme

There is also no established procedure to ensure that the complaints made against the violator are not dismissed without hearing.
This ambiguity in the memorandum leaves scope for a less transparent redressal mechanism.
The penalties suggested could be termed as legitimating non-compliance.

Criticisms

Environmental experts argue that such a move to regularise projects, irrespective of size, scale or impact, is purely a political move.
They regarded this move as weakening the EIA process.
This will be the largest regularization scheme for projects that have operated illegally in India and added to our total environmental and social burdens.
Thousands of projects operate in different states without any environmental approval.

Way forward

Looking at the plethora of violation cases it is imperative to develop such a mechanism.
However, we should not compromise the existing environmental regulations and adopt a ‘zero tolerance for violation’.

Back2Basics: Environment Impact Assessment

Environment impact assessment is a process under the Environment (Protection) Act, 1986, which prevents industrial and infrastructural projects from being approved without proper oversight.
This process ensures that every project should go through the EIA process for obtaining prior environmental clearance.
EIA covers projects such as mining of coal or other minerals, infrastructure development, thermal, nuclear and hydropower projects, real estate and other industrial projects.
The projects are assessed based on their potential impact on the environment. Based on the assessments, they are granted or denied environmental clearance by a panel of experts.

Loopholes in draft EIA 2020

The EIA new draft 2020 allows post-facto clearance.
This means that even if a project has come up without environmental safeguards or without getting environment clearances, it could carry out operation under the provision of the new draft EIA 2020.
This is disastrous because we already have several projects that are running without EIA clearances.

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Civil Services Reforms

Dismissal of govt employees: What the Constitution says

Prelims Only | Governance | Mains Paper 2: Civil Service

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 311

Mains level: Civil services reforms

Lt Governor has dismissed 11 Jammu and Kashmir government employees for alleged terror links under provisions of Article 311(2)(c) of the Constitution.

What is Article 311?

Article 311 of the Constitution deals with ‘Dismissal, removal or reduction in rank of persons employed in civil capacities under the Union or a State’.
Under Article 311(2), no civil servant can be “dismissed or removed or reduced in rank except after an inquiry in which he has been informed of the charges and given a reasonable opportunity of being heard in respect of those charges’’.
Subsection (c) of the provision, however, says this clause shall not apply “where the President or the Governor, as the case may be, is satisfied that in the interest of the security of the State it is not expedient to hold such inquiry”.

Remedy available

The only available remedy to a terminated employee is to challenge the government’s decision in the High Court.

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

[pib] Commission for Sub-categorization within OBCs gets another extension

PIB | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 340

Mains level: Subcategorization within OBCs

The Union Cabinet has approved of the term of the Commission constituted under Article 340 of the Constitution to examine the issue of Sub-categorization within Other Backward Classes (OBCs) in the Central List.

What is the Sub-categorization of OBCs?

OBCs are granted 27% reservation in jobs and education under the central government.
In September 20202, a Constitution Bench of the Supreme Court reopened the legal debate on the sub-categorization of SCs and STs for reservations.
The debate arises out of the perception that only a few affluent communities among over 2,600 included in the Central List of OBCs have secured a major part of this 27% reservation.

Need for sub-categorization

The argument for sub-categorization — or creating categories within OBCs for reservation — is that it would ensure “equitable distribution” of representation among all OBC communities.
To examine this, the Rohini Commission was constituted on October 2, 2017.
At that time, it was given 12 weeks to submit its report but has been given several extensions since, the latest one being the 10th.
Before the Rohini Commission was set up, the Centre had granted constitutional status to the National Commission for Backward Classes (NCBC).

Why so many extensions are being given?

In process of preparing the sub-categorized central list of OBCs, the Commission has noted several ambiguities in the list as it stands now.
The Commission is of the opinion that these have to be clarified/rectified before the sub-categorised central list is prepared.
A hurdle for the Commission has been the absence of data for the population of various communities to compare with their representation in jobs and admissions.
Many groups of OBCs have been demanding enumeration of OBCs in the Census.

Back2Basics: Article 340

Article 340 of the Indian Constitution lays down conditions for the appointment of a Commission to investigate the conditions of the backward classes.
The President may by order appoint a Commission consisting of such persons as he thinks fit to investigate the conditions of socially and educationally backward classes within the territory of India.

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Judicial Pendency

[pib] Scheme for Development of Infrastructure Facilities for Judiciary

| Polity | Mains Paper 2: Executive & Judiciary

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gram Nyayalayas Scheme

Mains level: Not Much

The Union Cabinet has approved the continuation of the Centrally Sponsored Scheme (CSS) for the Development of Infrastructure Facilities for Judiciary. It also approved the decision to support the Gram Nyayalayas by proving recurring and non-recurring grants for a period of 5 years with a total outlay of Rs 50 crores.

About the Scheme

A Centrally Sponsored Scheme (CSS) for Development of Infrastructure Facilities for Judiciary has been in operation since 1993-94.
Adequacy of judicial infrastructure is critical for the reduction of pendency and backlog of cases in Courts.
The primary responsibility of infrastructure development for the subordinate judiciary rests with the State Governments.
The present proposal provides for additional activities like the construction of lawyer halls, toilets complexes and digital computer rooms.
This will add to the convenience of lawyers and litigants besides reducing the digital divide.

Why such a move?

Adequacy of judicial infrastructure is critical for the reduction of pendency and backlog of cases in Courts.
Several courts are still functioning in rented premises with insufficient space and some in dilapidated conditions without basic amenities.
Well-equipped judicial infrastructure facilitates the administration of justice in a manner that allows easy access and timely delivery of justice to all.

What is Gram Nyayalayas Scheme?

Gram Nyayalayas were established for speedy and easy access to the justice system in the rural areas across the country.
The Gram Nyayalayas Act came into force on October 2, 2009.
In terms of Section 3(1) of the Act, it is for the State Governments to establish Gram Nyayalayas in consultation with the respective High Courts.
The Act authorizes Gram Nyayalaya to hold a mobile court outside its headquarters.
Some major reasons behind the non-enforcement include financial constraints, the reluctance of lawyers, police and other government officials.

Features of the Gram Nyayalayas

Gram Nyayalaya is established generally at headquarter of every Panchayat at the intermediate level or a group of contiguous panchayat in a district where there is no panchayat at an intermediate level.
The Gram Nyayalayas are presided over by a Nyayadhikari, who will have the same power, enjoy the same salary and benefits of a Judicial Magistrate of First Class.
Such Nyayadhikari is to be appointed by the State Government in consultation with the respective High Court.

Jurisdiction

A Gram Nyayalaya have jurisdiction over an area specified by a notification by the State Government in consultation with the respective High Court.
The Court can function as a mobile court at any place within the jurisdiction of such Gram Nyayalaya, after giving wide publicity to that regard.
The Gram Nyayalayas have both civil and criminal jurisdiction over the offences and nature of suits specified in the First, Second and Third schedule of the Act.
The pecuniary jurisdiction of the Nyayalayas are fixed by the respective High Courts.
Appeals in criminal matter can be made to the Sessions Court in the respective jurisdiction and in civil matters to the District Court within a period of one month from the date of judgment.

Trials

Gram Nyayalayas can follow special procedures in civil matters, in a manner it deem just and reasonable in the interest of justice.
Civil suits are proceeded on a day-to-day basis, with limited adjournments and are to be disposed of within a period of six months from the date of institution of the suit.
In execution of a decree, the Court can allow special procedures following rules of natural justice.
Gram Nyayalayas allow for conciliation of the dispute and settlement of the same in the first instance.
They have been given the power to accept certain evidence which would otherwise not be acceptable under the Indian Evidence Act.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Growth matters but income levels matter more

| Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Purchasing Managers' Index

Mains level: Paper 3- Need for focus on supply side

Context

But the quest for sustained higher growth has been elusive for India for the last five years. The pandemic seems to make it more elusive.

The magnitude of contraction in the economy

There is nothing encouraging in the provisional estimates of annual national income (2020-21), released by the National Statistical Office.
The agriculture sector continued its impressive growth performance, reiterating that it still remains as the vital sector of the economy, especially at times of crisis.
The manufacturing sector continued its subdued growth performance, failing to emerge as the growth driver.
The contraction in trade (-18.2%), construction (-8.6%), mining (-8.5%) and manufacturing (-7.2%) is a matter of concern as these sectors account for the bulk of low-skilled jobs.
Gross Domestic Product (GDP) at Constant (2011-12) Prices in Q4 of 2020-21 is showing a growth of 1.6%.
The magnitude of contraction in the economy and the policy responses towards it raises an important issue of growth prospects for the next year.

Contextualising the current growth rates in terms of following three macroeconomic data would provide us a better perspective on growth recovery.

1) Rising unemployment

The unemployment data released by the Centre for Monitoring Indian Economy (CMIE) says, that in May 2021, India’s labour participation rate at 40 per cent was the same as it was in April 2021.
But, the unemployment rate shot up to 11.9 per cent from 8 per cent in April.
A stable labour participation rate combined with a higher unemployment rate implies a loss of jobs and a fall in the employment rate.
The employment rate fell to 35.3 per cent in May 2021 from 36.8 per cent in April 2021.
According to CMIE, over 15 million jobs were lost in May 2021.
May 2021 was therefore a particularly stressful month on the jobs front.

Takeaway

Employment and aggregate demand in an economy are related via the channel of disposable incomes of workers.
Aggregate demand and output growth have a positive correlation.
Hence, the prospects of growth revival in the next year look bleak at the moment and from employment perspective.

2) Low business confidence

It is the second important data point that needs to examined.
Business confidence index (BCI), from the survey by the industry body FICCI, plummeted to 51.5 from 74.2 in the previous round.
The survey also highlights the weak demand conditions in the economy.
Compounding this is the uncertainty arising out of the imposition of localised curbs due to the second wave of infections and a muddled vaccine policy in the country.

3) Low PMI

Manufacturing Purchasing Managers’ Index (PMI) has slipped to a 10-month low indicating that the manufacturing sector is showing signs of strain with growth projections being revised lower.
Both BCI and PMI slipping down indicates that the overall optimism towards 2021-22 is low, which could impact investments and cause further job losses.

Why focusing on supply-side will not work

Since last year, the policy responses have been to rely on credit easing, focusing more on supply side measures.
This policy stance is unlikely to prop up growth for three reasons.
First, the bulk of the policy measures, including the most recent, are supply side measures and not on the demand side.
Second, large parts of all the stimulus packages announced till now would work only in the medium term.
Third, the use of credit backstops as the main plank of policy has limits compared to any direct measure on the demand side as this could result in poor growth performance if private investments do not pick up.
Further, the credit easing approach would take a longer time to multiply incomes as lending involves a lender’s discretion and borrower’s obligation.

Way forward

Growth recovery depends on demand recovery.
The combined increase in exports of April and May 2021 is over 12% indicating that global demand rebound is much faster than the domestic demand.
What needs to be addressed immediately is the crisis of low domestic demand.
A tight-fisted fiscal policy approach comes at a time when conventional fiscal stimulus packages might not be enough as supply side issues arising out of episodic lockdowns need to be addressed simultaneously.
Focusing on short-term magnified growth rates resting on low bases might be erroneous, as income levels matter more than growth rates at this juncture.

Conclusion

India needs a sharp revival of demand for which higher per capita incomes are necessary.

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The upcoming challenges to Indian federalism

op-ed snap | Polity | Mains Paper 2: Federalism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Federal structure

Mains level: Paper 2- Challenges to India's federalism

Context

In 2026, there will be the challenge of addressing the conflict between the democratic principles and the federal principles, when there will be a reallocation of Lok Sabha seats. India needs to reimagine the current federal compact to address the challenges to federalism.

Population freeze for Lok Sabha seats

Since 1976, seats in the Lok Sabha have reflected the 1971 census and have not taken into account changes in the population.
The primary reason for this has been unequal population growth among States.
India’s most highly developed and prosperous States have been successful at family planning, while the poorer States continue to expand.
The freeze was thus a chance to ensure that India’s most successful States are not punished politically for their success.
Therefore, the Indian Constitution may face an unprecedented crisis in 2026 when there will be a dramatic change in the composition of the Lok Sabha.

Challenge of balancing the principle of democracy and federalism

As Article 1 of the Indian Constitution says, India is a Union of States.
However, the history of the linguistic reorganisation of States in 1956, and subsequent movements for Statehood afterwards demonstrates that States are distinct associative communities, within the federal structure of the Indian Union.
In a democratic set-up, all citizens are equal and are thus entitled to equal representation in governance.
But this would imply that bigger States are likely to dominate the national conversation over smaller States.
This leads us to an inherent contradiction between the principles of democracy and federalism when federal units are unequal in size, population and economics.
The small States fear that they would get a smaller share of the pie economically, a much reduced say in national issues, and be irrelevant in the political governance of the country.

How the US Constitution addresses the concerns of small states

When the Americans adopted their Constitution, they protected smaller States in four ways.
First, national powers over the States were limited.
Second, each State regardless of size had two seats in the Senate, giving smaller States an outsized role in national governance.
Third, Presidents are elected by electoral votes, which means they must win States rather than the total national population.
Fourth, the slave-owning states were allowed to count the slaves for purposes of representation, with each slave being counted as three-fifths of a person.
This essential structure remains the bedrock of the American Constitution today.

How Indian Constitution deals with the issue?

India’s quasi-federal structure has always been sui generis.
Our founders knew that India’s diversity made federalism inevitable, but, fearing separatist tendencies among States that had never been a single political unit, they also created a strong centre.
However, the 1956 reorganisation of States on linguistic lines was a popular recognition of federal principles and yet did not result in separatist tendencies.
Since then, new States within the Union have been created in response to the demands of people for greater autonomy.

Way forward on addressing the challenges to federalism

There is an urgent need to reimagine our national compact.
Following are the components of such a new balance that need to be fine-tuned to Indian realities.
Give more powers to States: The powers of States vis-à-vis the Centre contained in the Lists and in the provisions dealing with altering boundaries of States must be increased to assuage the fear of smaller States that they will be dominated by bigger ones.
More localised decision-making is bound to increase national prosperity.
Indeed, this was the entire goal of the creation of Panchayat governance through the 73rd and 74th Amendments to the Constitution.
Expand the role of Rajya Sabha: The role and composition of the Rajya Sabha, our House of States, must be expanded.
This would allow smaller States a kind of brake over national majoritarian politics that adversely impact them.
Consent of all states on financial redistribution: Constitutional change and the change in financial redistribution between the States must require the consent of all or nearly all States.
Constitutional provisions dealing with language and religion must also be inviolate.
Break the bigger States: Serious thought must be given to breaking up the biggest States into smaller units that will not by themselves dominate the national conversation.

Conclusion

The unity of India is, of course, the fundamental premise underlying this discussion; but this unity does not depend on an overbearing Centre for its survival.

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Capital Markets: Challenges and Developments

SEBI needs to adopt dual approval system for independent directors

op-ed snap | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Independent director

Mains level: Paper 3- Dual approval system for independent directors

Context

While the regulators have taken giant strides to enhance board independence in India, one significant conundrum persists about appoint and removal process of the independent directors.

How appointment and removal process affects the independence of independent directors?

Independent directors are appointed just like other directors through shareholder voting by a simple majority.
This confers a significant power in the hands of significant shareholders to handpick the independents.
In case of family-owned companies, it is not uncommon to appoint “friendly” independent directors.
As for public sector undertakings, there is a demonstrable affiliation between independent directors and the ruling political parties.

Dual Approval System: Way forward

The above trends suggest that unless independent directors owe their allegiance to the shareholder body as a whole, independence is likely to remain largely in form and not function.
In its consultation paper, SEBI proposed a “dual approval” system.
Under this system, the appointment of an independent director required the satisfaction of two conditions:
First, the approval by a majority of all shareholders.
Second, the approval of a “majority of the minority”, namely the approval of shareholders other than the promoters.
SEBI recommended the same “dual approval” system for the removal of independent directors as well.
SEBI drew inspiration from Israel and the premium-listed segment of the United Kingdom, which confers greater power to minority shareholders in installing or dethroning independent directors.
SEBI has not yet made any mention of implementing the dual approval system.

Issues with Dual Approval System

The first issue is that it militates against the majority rule principle that is intrinsic in a corporate democracy.
While understandable, that is hardly an immutable rule as corporate law does make exceptions in cases involving oppression of minority shareholders.
The second concern is that placing too much power in the hands of minority shareholders would be counterproductive, as it could result in a tyranny of the minority.
However, the dual approval system instead represents the best of both worlds. It does not negate the promoter’s involvement in the process of appointing or removing independent directors.
Only consensus candidates would end up becoming independent directors.
The third issue is one of shareholder apathy: Will minority shareholders be motivated to exercise an informed and meaningful choice?
Minority shareholders tend to be passive when they are unable to influence the outcome of shareholding voting.
However, where they do have a significant say, like in the “majority of the minority” process, they are likely to be more active in exercising their franchise.

Consider the question “How far has the provision of appointing independent directors to safeguard the interest of minority shareholders succeeded in its objectives? Suggest the changes to improve the challenges faced by the independent directors.”

Conclusion

In all, the appointment and removal system continues to undermine the independence and efficacy of corporate boards. The SEBI needs to implement the dual approval system at the earliest.

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