Articles Covered

1. ECI introduces ‘Myth vs Reality Register’ to proactively combat mis-information in General Elections 2024
2. ICG’s Pollution Control Vessel Samudra Paheredar makes a port call in Vietnam as part of its overseas deployment to ASEAN countries
3. Technology Development Board -Department of Science & Technology supports M/s Remine India Private Limited, Uttarakhand to set up Recycling Facility for Li-ion Batteries and E-Waste
4. Paradip Port becomes numero uno among Indian Major Ports in cargo throughput in FY 2023-24
5. Bridge Fuel
6. Digital India Trust Agency
7. Zero FIR
8. The PMLA — a law that has lost its way
9. 90 years of the Reserve Bank of India
10. Voter Verifiable Paper Audit Trail (VVPAT)
11. No relief to Kerala; SC refers plea on borrowing to Constitution bench

ECI introduces ‘Myth vs Reality Register’ to proactively combat mis-information in General Elections 2024

One-stop platform for credible and authenticated election related information in an easy-to-access format at the click of a button

1. To combat the spread of misinformation and uphold the integrity of the electoral process, the Election Commission of India (ECI) has today launched a ‘Myth vs Reality Register’ as part of the ongoing General Elections 2024.
2. It was launched today by Chief Election Commissioner Shri Rajiv Kumar along with Election Commissioners Shri Gyanesh Kumar and Shri Sukhbir Singh Sandhu at Nirvachan Sadan, New Delhi.  The ‘Myth vs Reality Register’ is accessible to the public through the Election Commission’s official website
3. The factual Matrix of the Register will be continuously updated regularly to include the latest busted fakes and fresh FAQs.The introduction of the ‘Myth vs Reality Register’ marks a significant milestone in the ECI’s ongoing efforts to safeguard the electoral process from misinformation.

• Chief Election Commissioner Shri Rajiv Kumar during the press conference on announcement of schedule for General Elections 2024 has identified misinformation as one of the challenges along with money, muscle and MCC violations for electoral integrity.
• With the proliferation of misinformation and false narratives becoming a growing concern in many democracies globally, this innovative and proactive initiative by ECI is an effort to ensure that voters have access to accurate and verified information throughout the electoral process.
• The ‘Myth vs Reality Register’ serves as a comprehensive repository of factual information to dispel myths and falsehoods circulating during the election period, thereby empowering them to make informed decisions.
• It has been designed in a user-friendly format broadly covering areas of myths and misinformation around EVM/VVPAT, Electoral Roll/Voter Services, Conduct of Elections and others.
• This register provides already busted election related fake information, probable myths circulating around on social media platforms, FAQs on important topics and reference material under different sections for all stakeholders. The register will be updated on a regular basis.
• All stakeholders are encouraged to verify and corroborate any dubious information received by them through any channel with the information provided in the Myth vs. Reality register.
• The platform can be used to verify information, prevent the spread of misinformation, debunk myths, and stay informed about key issues during the General Elections 2024. Users can also share the information on different social media platforms from the register.

ICG’s Pollution Control Vessel Samudra Paheredar makes a port call in Vietnam as part of its overseas deployment to ASEAN countries

• Indian Coast Guard (ICG) Pollution Control Vessel Samudra Paheredar, with an integral helicopter, made a port call at Ho Chi Minh, Vietnam on April 02, 2024 as part of its ongoing overseas deployment to Association of Southeast Asian Nations (ASEAN) countries.
• During the three-day visit, the crew will engage in professional interactions focusing on marine pollution response, maritime search & rescue, and maritime law enforcement. The activities will also include cross-deck training, subject matter expert exchanges, sports events and passage exercise with the Vietnam Coast Guard (VCG).
• The visit not only aims to strengthen ties between the ICG and VCG, but also showcases India’s indigenous shipbuilding capabilities. In addition, 25 National Cadet Corps (NCC) cadets aboard the vessel will participate in a Walkathon and Beach Clean-up activities.
• Since 2015, the ICG and VCG have an existing Memorandum of Understanding (MOU) which institutionalised the cooperative engagements between the two maritime agencies. This overseas deployment is a testimony to ICG’s commitment to bolster bilateral relationships and enhance international cooperation with friendly countries.

The visit of the ICG specialised vessel to these countries is in pursuance with India ASEAN Initiative for marine pollution announced during ASEAN Defence Ministers’ Meeting Plus in Cambodia in 2022. The deployment of Samudra Paheredar to the ASEAN region reflects India’s shared concern and resolve towards marine pollution, promoting safety and security through maritime cooperation. Prior to Ho Chi Minh, the vessel had visited Manila, Philippines to demonstrate a seamless continuation of diplomatic maritime engagements in the ASEAN region.

Technology Development Board -Department of Science & Technology supports M/s Remine India Private Limited, Uttarakhand to set up Recycling Facility for Li-ion Batteries and E-Waste

Technology Development Board (TDB) to provide financial assistance of ₹ 7.5 crores out of the total project cost of ₹ 15 crores

• The Technology Development Board (TDB) has entered into an agreement with M/s Remine India Private Limited, for “Setting up a commercial plant for recycling of Li Battery and E-Waste using Indigenous Technology”at Eldeco, SIIDCUL Industrial Area in Sitarganj (District Udham Singh Nagar), Uttarakhand on 27^thMarch 2024 in New Delhi.
• Through the agreement, TDB has pledged a financial assistance of ₹ 7.5 crores out of the total project cost of ₹ 15 crores, marking a significant stride towards sustainable development and environmental stewardship.
• The funded project entails the establishment of a commercial plant for the recycling of Li-ion batteries and e-waste, leveraging indigenous technology developed by the Centre for Materials for Electronics Technology (CMET), Hyderabad.
• Recognized as a matter of national significance, the efficient recycling of Li-ion batteries serves as a vital source of secondary raw materials for cell manufacturing within the country.
• The escalating imports of e-waste stemming from the disposal of spent Lithium-ion Batteries (LIBs) are driven by their growing utilization in portable electronics, electric vehicles, and global renewable energy storage systems.
• However, the disposal of LIBs through landfilling and incineration poses environmental and safety concerns, highlighting the need for recycling initiatives. The potential for value creation through the retrieval of metals from spent LIBs has spurred interest in recycling e-waste generated by these batteries.
• The lithium-ion battery recycling market size is projected to reach USD 14.89 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 21.6%, up from USD 3.79 billion in 2021. Despite this, a significant 95% of Li-ion batteries currently end up in landfills, while only 5% undergo recycling and reuse.
• The dominance of the informal sector in the e-waste scenario has adverse environmental and economic implications. Efficient and environmentally friendly recycling methods are imperative to address the escalating issue of battery waste, mitigate migrant supply side risks related to critical elements, and reduce carbon footprints.
• Speaking on the occasion,Shri Rajesh Kumar Pathak, Secretary, TDB, said,“India is 3^rd in the world in terms of e-waste generation and significant efforts are required to curb the issue. TDB supporting this initiative would help to engage informal recyclers to connect with formal recyclers thereby contributing towards circular economy.”

Paradip Port becomes numero uno among Indian Major Ports in cargo throughput in FY 2023-24

1. Paradip Port Authority (PPA’s) remarkable journey has reached new heights with the recent record-breaking achievement of clocking incredible 145.38 MMT cargo throughput in FY 2023-24 and thus-by nudged passed Deendayal Port, Kandla to emerge as the highest cargo handling major port of the country.
2. For the first time in the 56 years history of operation, PPA has surpassed previous records, set by Deendayal Port. Paradip Port has also recorded growth of 10.02 million metric tonnes (7.4%) of traffic on YoY basis.
3. During the financial year the Port has achieved highest ever coastal shipping traffic of 59.19 million metric tonnes, with a growth of 0.76 million metric tonnes i.e. 1.30% over the previous year.

1. The thermal coal coastal shipping has reached 43.97 million metric tonnes i.e. 4.02% over the previous year cargo handling. Thus, the Paradip Port is emerging as a hub for coastal shipping in the country.

• Paradip Port has been able to improve its berth productivity to 33014 MT from 31050 MT of previous financial year, thus registering 6.33% growth.
• The berth productivity achieved by Paradip Port is the highest among all the ports of the country.During the financial year, the Port has handled 21,665 numbers of rakes, registering a growth of 7.65% over the previous financial year.
• During the financial year, the Port has handled 2710 ships, registering an increase of 13.82% over the previous financial year.

The increased performance in cargo handling has been driven by various system improvement measures undertaken by the Port during the financial year, which are detailed as below:

1. Improved system of operation at mechanized coal hand plant to reduce idle time between rake unloading has resulted in highest handling of thermal coal at MCHP i.e. 27.12 million metric tonnes.
2. The northern dock of the port has been declared for handling 16 meters draught cape vessels.
3. Simultaneous handling of 1 Cape and 1 Panamax at coal handling berths, which was not being done during the previous year.

• Paradip Port has frozen its tariff for cargo handling at the level of 2022 for next 3 years as a part of its business development initiatives. It is to be noted that Paradip Port is the cheapest in terms of tariff among all the port of the country.

 In terms of provisional financial results,

1. The Operating revenue has crossed Rs.2,300 Crores against Rs.2,074 Crores in comparison to previous fiscal, resulting an increase of 14.30%.
2. The operating surplus has crossed Rs.1,510 Crores against last year of Rs.1,300 Crores with a growth of 16.44 %.
3. The net surplus before tax has crossed Rs.1,570 Crores against last year Rs.1,296 Crores exhibiting growth of 21.26 %.
4. Net surplus after tax has also crossed Rs.1,020 Crores against Rs.850 Crores of last year which is 20% increase.
5. The operating ratio has also improved to 36% against 37% last year.

• Paradip Port, with 289 million metric tonnes rated capacity port as on date, is poised to cross 300 million metric tonnes capacity mark in another 3 years with the commissioning of Western Dock project.
• The work of Western Dock project with 25 million metric tonnes capacity is in full swing by the PPP Operator i.eM/s. J.P.P.L. The said project will also increase the draught of the port, enabling the port to handled fully laden cape vessels by 2026.
• Paradip Port, which has mechanized 80% of the berths as on date, plans to become 100% mechanized by 2030 with the mechanization of existing 4 semi-mechanized berths.The Port has also planned to add another 4 berths for which requisite approval will be taken during the current financial year, itself.
• Paradip Port is planning to improve the connectivity by commissioning two road flyovers within its premises with a cost of Rs.150 crores to avoid surface crossing of rail and road traffic. This will enable the Port to handle road traffic seamlessly.

1. As a part of its port lead industrialization initiatives, the Port has allotted 769 acres of land to various industries which will bring more than Rs.8700 crores of investment and thus attracting 50 million metric tonnes of traffic to port.
2. Paradip Port, as part of its greenification, has planted 2 lakh saplings during the last year and it is expected to reach 1 million tree plantations by the year 2025.
3. The Port has also planned to develop 10 MW solar power plant to power the operations of the port, totally by renewable energy. The Port is also planning to come up with green refuelling station by setting up LNG and CNG depot at the Port.
4. The Port is also aiming to develop one exclusive berth for handling green ammonia/green hydrogen thus becoming the hydrogen hub port of the country.
5. The Port is developing a ultramodern signal station with latest vessel traffic management information system in association with IIT, Chennai. This will improve the vessel management and marine operations substantially, apart from improving the security.

Bridge Fuel

1. Bridge fuel is a commonly-used term for a fuel that will power societywith the least environmental cost while we deploy non-polluting, renewable energy.
2. The goal of using a bridge fuel is to replacethe bulk of today’s fossil-fuel-dependent energy sources as we transition to a cleaner and more renewable energy economy that is free of greenhouse gas emissions.
3. The length of the bridge and the energy source used to build the bridge are both topics of debate.
4. Many people considernatural gas a bridge fuel because it produces less greenhouse gas during the combustion process.
5. However, additional considerations for a bridge fuel include whether it increases national energy independence while reducing pollution-related costs.

Key Facts about Natural Gas

1. Natural gas is a fossil fuel. Like all fossil fuels, it is a nonrenewable resource.
2. It is a mixture of gases which are rich in hydrocarbons.
3. It is a colorless and odorless gascomposed of 70-90% methane (CH4). Its other ingredients include ethane (C2 H6) and propane (C3 H8).

Possible impurities include carbon dioxide (CO2), hydrogen sulfide (H2S), and nitrogen (N).

natural gas form

• Millions to hundreds of millions of years ago, the remains of plants and animals(such as diatoms) built upinthick layers on the earth’s surface and ocean floors, sometimes mixed with sand, silt, and calcium carbonate.
• Over time, these layers were buried under sand, silt, and rock.
• Pressure and heat changedsome of this carbon- and hydrogen-rich material into coal, some intooil (petroleum), and some into natural gas.
• Natural gas reserves are deepinside the earth, near othersolid and liquid hydrocarbon beds like coal and crude oil.

Uses:

1. It is not used in its pure form; it is processed and converted into cleaner fuel for consumption.
2. Many by-productsare extracted while processing of natural gas, like propane, ethane, butane, carbon dioxide, nitrogen, etc, which can be further used.
3. It is mainly used as a fuel for generating electricityand heat.
4. Natural gas in compressed formis used as fuel for vehicles, which is known as CNG.
5. It is used as fuel for boilers and air conditioners
6. It is also used for making fertilizersalso, mainly ammonia.
7. Natural gas has been called a ‘bridge fuel’for countries looking to transition away from coal and oil dependency.
8. Hailed as a cleaner energy source than other fossil fuels,especially coal, natural gas has a lesser climate impact than coal because it emits 50 percent less CO2 into the atmosphere.

Digital India Trust Agency

1. It will be responsible for stopping illegal lending appsfrom popping up.
2. It will enable the verification of these digital lending apps and will maintain a public registerof these verified applications.
3. Any app which will not carry the “verified” tag of DIGITA, will be considered unauthorised.
4. Significance:This will create an important and much-needed checkpoint in the fight against online financial fraud.

digital lending

1. It is a remote and automated lending process, largely by use of seamless digital technologies.
2. It involves lending through web platforms or mobile apps,utilising technology in customer acquisition, credit assessment, loan approval, disbursement, recovery and associated customer service.
3. It generally involves three parties– a lender, a lending service provider (including a digital lending platform) and a borrower.
4. It includes products like Buy Now, Pay Later (BNPL), which is a financing option (or simply a short-term loan product).

It allows one to buy a product or avail a service without having to worry about paying for it immediately.

Zero FIR

1. It refers to a First Investigation Report (FIR) that is registered irrespective of the areawhere the offense is committed.
2. The police in such a case can no longer claim that they have no jurisdiction.
3. It is later transferred tothe police station that has the actual jurisdiction so that the investigation can begin.
4. It was introduced on the recommendation of the Justice Verma Committeeformed at the backdrop of the brutal Nirbhaya gang rape in Delhi in 2012.
5. This puts a legal obligation on the police to begin an investigation and take quick action without the excuse of the absence of jurisdiction.
6. Objective:It is to ensure the victim doesn’t have to run from pillar to post to get a police complaint registered. The provision is meant to provide speedy redressal to the victim so that timely action can be taken after the filing of the FIR.

an FIR

• It is information recorded by a police officer on duty given either by the aggrieved person or any other person to the commission of an alleged offence.
• It is not definedin the Indian Penal Code (IPC), Code of Criminal Procedure (CrPC), 1973, or in any other law.
• In police regulations or rules, information recorded under Section 154 of CrPCis known as First Information Report (FIR).

The PMLA — a law that has lost its way

The most serious aspect of the Prevention of Money Laundering Act is the inclusion of offences which have nothing to do with the original motive — namely, to combat the laundering of drug money

The Prevention of Money Laundering Act (PMLA), 2002 is under scrutiny as its most serious aspect is the inclusion of offences that have nothing to do with the original motive of combating the laundering of drug money.

1. Recently, the Delhi Court slammed the Enforcement Directorate (ED) for a faulty Prevention of Money Laundering Act (PMLA) Probe and said the ED must introspect steps to ensure expeditious and fair investigations.
2. The case dealt with a complaint filed by ED against five individuals for alleged commission of offences under Sections 3 and 4 of the PMLA. One of the individuals died during the trial.

Money Laundering

• Money laundering is the illegal process of making large amounts of money.
• A criminal activity generates this money but may appear to come from a legitimate source.
• Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery, and computer fraud schemes that produce large profits.

Global Initiatives against Money Laundering: 

• Vienna Convention, 1988: The Convention was adopted by the UN Conference for the Adoption of a Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, held in Vienna in 1988.
• All countries were urged to take urgent steps to prevent the laundering of the proceeds of drug crimes and other connected activities.
• Establishment of the Financial Action Task Force (FATF):
• In 1989, the G7 countries held a summit in Paris and established the FATF to examine the problem of money laundering and recommend measures to tackle this menace.
• The G7 or Group of Seven is an intergovernmental political and economic forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
• Political Declaration and Global Programme of Action:
• In 1990, the United Nations General Assembly adopted a resolution, the Political Declaration and Global Programme of Action.
• It called upon all member countries to enact suitable pieces of legislation to prevent the laundering of drug money effectively.
• In pursuance of this resolution, India used the recommendations of the FATF to formulate legislation to prevent drug money laundering.
• Special Session of the UN:
• In 1998, the UN held a special session on the theme ‘Countering World Drug Problem Together’ and made another declaration on the urgent need to combat money laundering.
• Accordingly, India enacted the Prevention of Money Laundering Act in 2002, but was enforced in 2005.
• Palermo Convention, 2000: With the signing of the UN Convention against Transnational Organized Crime in Palermo, Italy, in December 2000, the international community demonstrated the political will to answer a global challenge with a global response.

If crime crosses borders, so must law enforcement.

Background of Prevention of Money Laundering Act (PMLA), 2002: 

• A Distinct Objective: The humongous volume of black money generated through international drug trafficking posed a grave threat to the economy of many countries.
• Combat the Risk of Destabilisation: There was widespread realisation that the black money generated through the drug trade and integrated into the legitimate economy was likely to destabilise the world economy and endanger the integrity and sovereignty of nations.
• Supporting Data: As per United Office on Drugs and Crime, drug trafficking – the global illicit trade involving the cultivation, manufacture, distribution and sale of substances which are subject to drug prohibition laws is estimated to be a $32 billion industry.

Enactment of the Prevention of Money Laundering Act (PMLA), 2002:

Article 253 of the Indian Constitution:

• The PMLA was enacted by India’s Parliament under Article 253 which empowers it to make laws for implementing the international conventions and to give effect to the Recommendations of the Financial Action Task Force (FATF) on addressing the problem of money laundering.
• Used to enact the Prevention of Money Laundering Act (PMLA), 2002.
• Deals With: The law on money laundering enacted under Article 253 and Item 13 of the Union list in the context of the UN resolution referred to above can only be on drug money.
• Crime Proceeds: The PMLA revolves around the “crime proceeds” which are laundered. Not only the persons involved directly in the crime and the generation of the crime proceeds but also persons who have nothing to do with the crime but who have some involvement at a later stage in the laundering process are also guilty under this law.
• This was considered the most serious economic crime which had the potential to destabilise the world economy and endanger the sovereignty of nations. So, there was global consensus on the need to have a tough law to deal effectively with this crime.
• Regulating Authority: The ED is responsible for enforcing the provisions of the PMLA and investigating money laundering cases.

Provisions of the Prevention of Money Laundering Act (PMLA), 2002:

1. Section 3 of PMLA: It defines the offense of money laundering.
2. The existence of a predicate offense is sine qua non to charge someone of money laundering.
3. The investigation and prosecution of the predicate offense is done by the Central Bureau of Investigation (CBI) or the State Police.
4. Section 4 of PMLA: This section deals with punishment.
5. Section 50 of the PMLA: It provides powers of a civil court to the ED authorities for summoning persons suspected of money laundering and recording statements.

Financial Intelligence Unit – India (FIU-IND) is the central, national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions to enforcement agencies and foreign FIUs.

• Prescribed Obligation: PMLA prescribes the obligation of banking companies, financial institutions and intermediaries for verification and maintenance of records of the identity of all its clients and also of all transactions and for furnishing information of such transactions in a prescribed form to the Financial Intelligence Unit (FIU-IND).
• Setting up of Authority: PMLA envisages the setting up of an Adjudicating Authority to exercise jurisdiction, power and authority conferred by it.
• It also envisages the setting up of an Appellate Tribunal to hear appeals against the order of the Adjudicating Authority and the authorities like Director FIU-IND.
• Special Courts: Under PMLA, Special Court or Special Courts are used to try the offenses punishable under PMLA and offenses with which the accused may, under the Code of Criminal Procedure 1973, be charged at the same trial.
• Agreement for Central Government: It allows the Central Government to enter into an agreement with the Foreign Governments for enforcing the provisions of the PMLA, exchange of information or investigation of cases relating to any offense under PMLA.

Flaws and Inadequacies in the Provisions and Working of the PMLA, 2002:

• Against the Fundamental Rights: Under Section 19 of the PMLA, the ED, while arresting a person, is merely required to furnish the grounds of arrest, and there is no requirement to disclose the contents of the ECIR (akin to an FIR), which contains the allegations against the accused person.
• As has been held in Vijay Madanlal Choudhary, supplying a copy of ECIR to the accused person is not mandatory.
• This is against the fundamental right of the accused to be informed of the charges and allegations, which is a universally recognised right, and is a part of the right to life and liberty under Article 21 of the Constitution.
• Section 50 of the PMLA empowers the authorities to issue summons to “any person”, including the accused, to give evidence or produce records during the course of an investigation is in violation of the right against self-incrimination, which is a fundamental right under Article 20(3) of the Constitution.
• Incorporation of Various Unrelated Subjects: The UN Resolution on the basis of which the PMLA was enacted in India spoke only about the offence of the laundering of drug money. However, the PMLA of India acquired a different character through amendments from time to time.
• The schedule has been expanded over the years, including even minor and non-serious offences such as copyright and trademark infringements, thereby considerably expanding the scope of the PMLA.
• On Punishment: Tough laws were incorporated to deal with most serious economic crime.  However, due to various amendments, now it contains such offences which are either ordinary offences listed in the IPC or for which there are special laws in force.
• Example: The Prevention of Corruption Act, 1988, aimed at curbing corruption among public servants. This Act was added to the schedule of offences in 2009. The PMLA now applies with all its rigour to public servants. Thus, a public servant charged with corruption and a hard-core drug trafficker are treated alike.
• Against the Anglo-Saxon Jurisprudence: A very disturbing thing about the PMLA is that it turns the Anglo-Saxon jurisprudence principal upside down and an accused under this law is presumed to be guilty until proven innocent.
• Anglo-Saxon Jurisprudence: Under this principle, a person is presumed innocent until proven guilty.
• Presumption of innocence has been acknowledged by the FATF as one of the fundamental principles of domestic law and admitted that misapplication of FATF Standards may have affected due processes and procedural rights, including the presumption of innocence.
• Uncontrolled Discretion of Authorities: The prosecution under the PMLA can be initiated as long as an FIR in relation to a scheduled offence has been registered with the jurisdictional police, or the same is pending enquiry or trial. The lack of guidelines in this regard gives unbridled discretion to the authorities to invoke the provisions of the PMLA selectively and arbitrarily.
• Under the PMLA, the ED, unlike other central police organisations which are required to obtain the consent of the state before carrying out any policing/investigating activity, can carry out investigation without the prior consent of the concerned State.
• Against the Basic Structure of the Constitution: Post 2019 amendments to the PMLA, the distinction between the offence of money laundering and scheduled offence has been blurred to a great extent and has resulted in the ED investigating into the commission of the scheduled offence itself.
• Since there is no requirement to obtain the consent of the state, the exercise of policing power by the ED, a Central agency, within the territory of a state without its consent is against the value of federalism (a part of the basic structure of the Constitution).
• Tough on Bail: An accused will be denied bail by the entire hierarchy of courts because the bail provision contained in section 45 of the PMLA says that a judge can give bail only when he/she is satisfied that the accused is innocent.

The Bail Provision of the PMLA Act (Section 45):

1. In Nikesh Tarachand Shah vs Union of India (2018): In this case, the bail provision of the PMLA Act was held unconstitutional as a violation of Article 14 and Article 21.
2. Restoration of the Provision by the Parliament: Parliament restored the provision with certain amendments.
3. Upheld by the Judiciary: In Vijay Madanlal Choudhary vs Union of India (2022), the Supreme Court upheld that this provision is reasonable and has direct nexus with the purposes and objects of the PMLA Act.

Judges said that inclusion of a particular offence in the schedule comes within the domain of the legislative policy.

Supreme Court on PMLA:

Challenge on Provisions: The constitutionality of various provisions of the PMLA were challenged before the Supreme Court on the following grounds:

1. The conditions for bailwere disproportionately stringent.
2. Thepower conferred on the ED to issue summons, record statements, make arrests, and search and seize property was wide and open to misuse.
3. There was a total lack of procedural safeguards.

• Rejection by the Supreme Court: The challenge was rejected by the apex court in its judgment in Vijay Madanlal Choudhury vs Union of India (July 2022).
• Grounds: Underpinning the decision is the belief that India’s commitment to the international community to deal sternly with the offence of money laundering is sacrosanct, and even excels considerations of fundamental rights.
• Review Petition: A review petition has been filed against the judgment, and is pending before the court.

Ozone

An international team of scientists, including from India, has discovered strong evidence indicating the presence of ozone on Jupiter’s moon Callisto.

1. It is a gas composed of three atoms of oxygen. It is both a natural and a man-made productthat occurs in the Earth’s upper atmosphere (Stratospheric ozone) and lower atmosphere (the troposphere).
2. Stratospheric ozone is formed naturally through the interaction of solar ultraviolet (UV) radiation with molecular oxygen (O2).
3. The “ozone layer,” approximately 6 to 30 milesabove the Earth’s surface, reduces the amount of harmful UV radiation reaching the Earth’s surface.

Key facts about Callisto

1. It is one of Jupiter’s largest moonsand the third-largest moon in the Solar System after Ganymede and Titan.
2. Composition:It is primarily composed of water ice, rocky materials, sulphur dioxide, and some organic compounds. These substances make the moon a potential candidate for supporting life in the Solar System beyond the earth.

Its surface is heavily cratered, indicating a long history of being struck by asteroids and comets. It also lacks the extensive seismic activity seen on some of Jupiter’s other moons, such as Io and Europa.

90 years of the Reserve Bank of India

The Prime Minister addressed the opening ceremony of RBI@90, a program marking 90 years of the Reserve Bank of India.

RBI:

• The Reserve Bank of India was established on April 1, 1935,in accordance with the provisions of theReserve Bank of India Act, 1934, based on the recommendations of the Hilton Young Commission.
• The Central Office of the Reserve Bank was established inKolkata but permanently moved to Mumbai in 1937.
• Though originally privately owned, since nationalisation in 1949, the Reserve Bank is wholly owned by the Government of India.
• Thefirst Governor of the RBI was the Australian Sir Osborne Arkell Smith,one of the two managing governors of the Imperial Bank of India.
• Sir C D Deshmukh was thefirst Indian to become Governor.

Governance:

• A central board of directorsgoverns the Reserve Bank’s affairs.
• The Government of India appoints the board per the Reserve Bank of India Act.
• Appointed/nominated for a period of four years
• Constitution:
• Official Directors
• Full-time:Governor and at most Four Deputy Governors.
• Non-Official Directors
• Nominated by Government:Ten Directors from various fields and two government officials.
• Others: Four Directors – one each from four local boards.

Functions Of RBI: General superintendence and direction of the Bank’s affairs

Monetary Authority:

1. Formulates, implements, and monitors the monetary policy.
2. Objective: maintaining price stability while keeping in mind the objective of growth.

Regulator and supervisor of the financial system:

1. Banker to other Banks:The RBI, being an apex monetary institution has obligatory powers to guide, help and direct other commercial banks in the country.
2. Lender of the last resort: Every commercial bank has to maintain a part of its reserves with its parent viz., the RBI. Similarly, in need or in urgency, these banks approach the RBI for funds.
3. Objective:maintain public confidence in the system, protect depositors’ interest and provide cost-effective banking services to the public.

Banker to the Government: The RBI, being the apex monitory body has to work as an agent of the central and state governments. 

It manages government public debts and provides an overdraft facility to the government when it faces a financial crunch. 

Manager of Foreign Exchange:

1. Manages the Foreign Exchange Management Act, 1999.
2. Objective: to facilitate external trade and payment and promote orderly development and maintenance of the foreign exchange market in India.

Issuer of currency:

1. The RBI has the sole right, authority, or monopoly of issuing currency notes except one rupee note and coins of smaller denomination.
2. Objective:to give the public an adequate quantity of good-quality currency notes and coins.

Developmental role:  

• Performs various promotional functions to support national objectives.

Regulator and Supervisor of Payment and Settlement Systems: 

1. Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.
2. Objective:maintain public confidence in the payment and settlement system

Voter Verifiable Paper Audit Trail (VVPAT)

1. It was first introducedin India in the 2014 Lok Sabha elections.
2. It is an independent systemthat consists of two parts, namely, a VVPAT Printer and VVPAT Status Display Unit (VSDU) attachedto the Electronic Voting Machines (EVMs), that allow the voters to verify that their votes are cast as intended.
3. When a vote is cast, a slip is printedcontaining the serial number, name, and symbol of the candidate and remains exposed through a transparent window for 7 seconds.
4. Thereafter, this printed slip automatically gets cutand falls into the sealed drop box of the VVPAT.

VVPAT used for verification

1. The results of EVMs can be verified using the slipskept in the drop boxesof VVPAT machines.
2. VVPAT can be accessed by the polling officials, but not by the voters.
3. The paper slips are deemed to be more authoritative than EVM talliesin cases where VVPAT slips are utilised to verify votes.
4. Voter verification, however, is only done in extreme circumstances, such as when there are accusations of fraud or miscalculation.
5. The ECIhas the authority to request that votes be verified using VVPAT slips in response to such complaints.
6. At the moment, the VVPAT slips are counted in a randomly-selected polling stationin each Assembly constituency or Parliamentary constituency, depending upon the nature of the elections being held.

The ECI has clarified that EVMs and VVPATs are separate entities and are not connected to any network.

These machines are developed by the Electronics Corporation of India Limited (ECIL) and Bharat Electronics Ltd (BEL).

No relief to Kerala; SC refers plea on borrowing to Constitution bench

Supreme court referred the plea filed by the State against the Centre over interference with the State’s power to borrow and regulate its own finance to a constitution bench

The Supreme Court refused to grant Kerala relief in its dispute over net borrowing limits with the Centre.

• Challenge to Centre’s Borrowing Ceiling Imposition: The state government approached the Supreme Court against the Centre imposing a ceiling on the amount it can borrow, saying it was violative of the principles of fiscal federalism.
• Acknowledgment of Union’s Argument on Excessive Borrowing:The court acknowledged the Union’s argument that if there’s excessive borrowing, it may lead to reductions in subsequent years. 
• Referral of State’s Plea to Constitution Bench:However, the court referred the plea filed by the state against the Centre overinterference with the state’s powers to borrow and regulate its own finances to a Constitution Bench.
• The bench noted that since Article 293 of the Constitution has not so far been subjected to any authoritative interpretation by this court”, therefore the questions raised in the suit “are referred for answering by a five-judge bench”.

Borrowing Power Under Indian Constitution: The Constitution makes the following provisions with regard to the borrowing powers of the Centre and the states:

• Article 292: It deals with the borrowing power of the Central Government.
• The Central government can borrow either within India or outside upon the security of the Consolidated Fund of India or can give guarantees, but both within the limits fixed by the Parliament.
• Article 293: It deals with the borrowing power of the states. Clauses under it includes:

1. A state government can borrow within India (and not abroad) upon the security of the Consolidated Fund of the State or can give guarantees, but both within the limits fixed by the legislature of that state.
2. The Central government can make loans to any state or give guarantees in respect of loans raised by any state. Any sums required for the purpose of making such loans are to be charged on the Consolidated Fund of India.
3. A state cannot raise any loan without the consent of the Centre, if there is still outstanding any part of a loan made to the state by the Centre or in respect of which a guarantee has been given by the Centre.

International Practice In Subnational Borrowing Regulation:

Mechanisms for Subnational Borrowing Regulation Various mechanisms employed across the world reveal four broad categories of subnational borrowing regulations. If borrowing by subnational entities has not been prohibited altogether, a country may rely on:

1. Market discipline
2. Centrally-imposed or self-imposed fiscal rules,
3. Centralised administrative regulation
4. Cooperative regulation

• Market discipline: It relies on capital markets to send signals to subnational governments regarding the willingness of creditors to lend, with the same signals also indicating when borrowing is becoming unsustainable.
• Fiscal Rules: A regime relying on fiscal rules constrains the fiscal behaviour of subnational governmentsso as to ensure that there is predictability and robustness in the fiscal outcomes that emerge.
• Rules that have this effect can impose debt ceilings, deficit targets, expenditure rules of both quantitative and qualitative nature, Etc.
• Centralised administrative regulation: It gives the Central Government direct control over subnational borrowing.  This approach is more frequently used by unitary countries and less by federal countries.
• It can go to the extent of requiring the centre to evaluate and approve each different credit transaction itself, resulting in micromanagement of state debt.
• Cooperative Regulation:Mechanisms involving cooperative regulation facilitate theactive involvement of subnational governments in determining borrowing controls, including through negotiation processes.
• Thus, leads to arrival at overall fiscal targets for the general government as well as morespecific constraints on separate governments. 
• While combining the advantages of the other three approaches, cooperative systems promote information symmetry and dialogue between all the stakeholderswho have an interest in the common pool of resources of the nation.