CNA 03 Aug 2022:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related C. GS 3 Related SECURITY 1. Has bail under PMLA become near-impossible? D. GS 4 Related E. Editorials POLITY AND GOVERNANCE 1. Making sense of the ‘freebies’ issue ECONOMY, SCIENCE AND TECHNOLOGY 1. A turning point in crypto regulation, led by Europe INTERNATIONAL RELATIONS 1. Recalling India’s Antarctica activities F. Prelims Facts 1. Pingali Venkayya G. Tidbits 1. Al-Qaeda chief killed in U.S. strike in Kabul 2. Rupee not collapsing, says FM H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Nothing here for today!!!
C. GS 3 Related
1. Has bail under PMLA become near-impossible?
Syllabus: Money laundering and its prevention
Prelims: Prevention of Money Laundering Act, 2002 (PMLA)
Mains: Twin bail conditions under PLMA, Supreme Court’s Judgements and their implications
Context
The Supreme Court in the Vijay Madanlal Chaudhary vs Union of India case has approved the two bail conditions under the Prevention of Money Laundering Act, 2002.
Twin bail conditions under the Prevention of Money Laundering Act (PMLA)
- The Prevention of Money Laundering Act was introduced with an aim to prevent the serious implications of money laundering and hence it provides for a higher degree of conditions for the grant of bail as compared to the usual procedure under the Code of Criminal Procedure (CrPC).
- Section 45(1) of the Act provides that before bail is granted to an individual:
- The public prosecutor should be provided with an opportunity to oppose the bail application.
- And the court should be satisfied that there are reasonable grounds for believing that the accused is not guilty of the offence and is not likely to commit any crime while out on bail.
Read more on bail here.
Similar bail conditions in other Acts
- Unlawful Activities (Prevention) Act, 1967: Section 43D(5) of the UAPA mandates the court to give an opportunity to the public prosecutor to oppose the bail application.
- The Section also mandates the court to not grant bail if there are reasonable grounds for believing that the accusation made by the public prosecutor is evidently correct.
- Narcotic Drugs and Psychotropic Substances Act, 1985: Section 37(1) of the Act also provides similar powers to the court and the public prosecutor in terms of grant of bail.
- Terrorist and Disruptive Activities Act (TADA), 1987: Section 20(8) of TADA also had similar provisions. However, the Act has now been repealed.
Previous Supreme Court Judgements
- Kartar Singh vs State of Punjab case, 1994 – The Supreme Court upheld the two conditions under the TADA on the grounds that the courts must balance the interest of the victims and the community along with the safety of the nation and the rights of the accused.
- Nikesh Tarachand Shah vs Union of India case 2018 – In this judgement, the Court differentiated between Section 20(8) of the TADA and Section 45(1) of PMLA.
- The court said that Section 20(8) of the TADA applied to a ‘most heinous’ offence and that the previously un-amended Section 45(1) of PMLA did not pertain to an offence under the Act but only to a predicatory offence listed in Schedule A.
- The Supreme Court struck down Section 45(1) as unconstitutional as it is against the principles of Articles 14 and 21 of the Constitution.
Also read: Important Supreme Court Judgements
Supreme Court’s Latest Judgement
- Section 45(1) of PMLA was amended in 2018 and the changes included the twin conditions for bail for all offences under the PMLA.
- The amended section was challenged again and the Supreme Court in the recent Vijay Madanlal case has said that Section 45 was not erased from the laws but was only declared unconstitutional.
- This permitted the Parliament to amend the provision.
- On the differentiation made between Section 20(8) of TADA and Section 45(1) of the PMLA, the Supreme Court in a recent judgement said that “money laundering is no less a heinous offence than the offence of terrorism”.
- The Court further said that the offence of money laundering has a “direct impact on the financial systems, sovereignty and integrity of the countries,” and hence it is a heinous crime.
Implications of the recent judgement
- The recent Vijay Madanlal case judgement has been made by a Supreme Court bench composed of three judges which thereby overrides the decision made by the division bench of the Supreme Court in the Nikesh Shah case.
- By upholding the twin conditions under Section 45(1) of the PMLA, the SC has made the provisions of getting bail under PMLA very difficult and almost impossible.
- The two conditions for bail mandate the Court to make a call on the potential guilt of the offender based on the materials provided by the accused in the application for bail and the following opposition of the public prosecution.
- This provision overruled the conventional principles of “presumption of innocence” which says that an “undertrial is to be considered innocent until proven guilty”.
- This principle is crucial for protecting and ensuring the principles of due process of law enshrined in the Constitution.
- This provision overruled the conventional principles of “presumption of innocence” which says that an “undertrial is to be considered innocent until proven guilty”.
To read more about the latest Supreme Court judgement refer to the following article:
UPSC Exam Comprehensive News Analysis dated 31 Jul 2022
Nut graf: The twin bail conditions under Section 45(1) of the PMLA were contested as being arbitrary and draconian as they are against the principles of presumption of innocence. However, the SC has upheld the strict conditions which make it difficult to get bail under PMLA.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Category: POLITY AND GOVERNANCE
1. Making sense of the ‘freebies’ issue
Syllabus: Representation of People Act, 1951 (RPA)
Mains: Freebie politics and its consequences
Context:
- Debate over ‘freebies’ culture.
- A PIL against the promise of ‘irrational freebies’.
Concerns raised by highest offices against ‘freebies’:
- The Prime Minister of India raised caution about votes in return for ‘freebies’.
- The Chief Justice of India (CJI) remarked that ‘freebies’ were a serious issue and has asked the Union government to take a stand on the need to control the announcement of ‘freebies’ by political parties during election campaigns.
How all schemes are not to be confused as ‘freebies’:
Following initiatives were also part of the election manifesto of various political parties and they turned out to be exceptional welfare schemes for the country, building and strengthening human capital parameters.
- Public Distribution Scheme
- Such initiatives were part of the poll promises of almost all political parties during the mid- to late-2000s, including the general elections in 2009.
- This ultimately led to the National Food Security Act being passed by Parliament unanimously in 2013.
- Studies have shown the poverty-reducing effect of the PDS.
- The scheme was expanded and free food grains were distributed during the pandemic through the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) to around 80 crore ration cardholders.
- MGNREGA
- At a time when unemployment is at its peak, working under MGNREGA can guarantee some assured wages to vulnerable sections.
- Mid-day meals scheme
- Contributed to increased enrolment and retention in schools and addressing classroom hunger.
For more information on the freebies culture, read the below articles:
Sansad TV Perspective – Election Freebies
CNA dated April 20, 2022: Danger of electoral sops flagged
Nut Graf: The number of services that the Government provides to meet its constitutional obligations towards citizens is often seen to be confused with the ‘freebies’ culture.
Category: ECONOMY, SCIENCE AND TECHNOLOGY
1. A turning point in crypto regulation, led by Europe
Syllabus: Indian Economy and issues, science and technology developments
Mains: Awareness in the field of IT and computers
Context:
- The European Parliament and Council have come to a provisional agreement on long-awaited regulations on crypto, namely, the Regulation of Markets in Crypto-Assets (MiCA).
- Ongoing debates on the Finance Minister’s answer to a question in Parliament about the Indian government’s stance on cryptocurrencies.
What is Crypto?
- It is an Internet-native asset unbound by geographical boundaries.
- They are not controlled or issued by any enterprise.
- To transfer crypto a steady Internet connection and some elemental knowledge of crypto services are needed.
For more on cryptocurrencies click on the linked article.
Present status of crypto penetration worldwide:
- Slightly over 19 million bitcoins are in circulation at present, out of the total capped supply of 21 million bitcoins.
- There are 75 million crypto wallet holders.
The Regulation of Markets in Crypto-Assets, or MiCA
- The European Parliament and Council came up with a provisional agreement on long-awaited regulations on crypto called MiCA.
- The target of MiCA is to regulate crypto asset services and crypto asset issuers.
- The intent is to provide:
- Consumer protection
- Transparency
- Governance standards
- MiCA fixes the liability on crypto asset service providers, in case of loss of investors’ assets and makes them subject to European market-abuse regulations, including those on market manipulation and insider trading.
- It also put forth specific regulations for stablecoins (cryptocurrencies designed to have a relatively stable price by pegging them to a commodity/currency or having its supply regulated by an algorithm).
- The issuers of stablecoins are subject to a greater degree of compliance and declaration.
- They have to maintain reserves to cover all claims of the coins and must implement a process for their immediate redemption.
Nut Graf: With the rising penetration of cryptocurrency worldwide, Europe’s MiCA is a welcome step as it provides a blueprint on how to regulate the volatility of cryptocurrencies.
Category: INTERNATIONAL RELATIONS
1. Recalling India’s Antarctica activities
Syllabus: Bilateral, regional and global groupings and agreements involving India
Prelims – Indian Antarctic Bill, 2022, Antarctic Treaty
Context: Parliament passed the Indian Antarctic Bill, 2022.
India’s achievements in the context of the Antartic
- Operation Gangotri was the first Antarctic expedition in January 1982.
- A second expedition landed in Antarctica in December 1982.
- India became a member of the Antarctic Treaty in August 1983.
- 1984 saw two more striking Indian achievements:
- The First Antarctic team started wintering there from March 1, 1984.
- An unmanned Antarctic research base named Dakshin Gangotri was established.
- India has set up two manned research stations in Antarctica – Maitri in 1988 and Bharati in 2012.
- Forty expeditions to the continent have taken place.
For more on the Indian Antarctic Bill check the linked article.
Way Ahead:
- The acquisition of a polar research vessel on a permanent basis is a logical next step to the passage of the Bill.
- Revamping the old Maitri research station.
Nut Graf:
India has proactively taken steps for expeditions in the Antarctic region right from the late 20th century, giving the region due importance in policies as well. The Indian Antarctic bill is a reflection of this.
F. Prelims Facts
Syllabus: GS-1; Modern History; Significant personalities
Prelims: Facts about Pingali Venkayya
Context
146th birth anniversary of Pingali Venkayya.
Pingali Venkayya
- Pingali Venkayya was born on August 2nd, 1876 in Bhatlapenumarru, near Machilipatnam town in Andhra Pradesh.
- He is regarded as the “architect of the Indian National Flag”.
- The version presented by Venkayya had two stripes (green and saffron) and the spinning wheel at the centre. Later, Venkayya added a white stripe and this became the original Tricolour.
- The government is organising a “Har Ghar Tiranga” initiative to mark 75 years of Independence.
Know more about – Pingali Venkayya
G. Tidbits
1. Al-Qaeda chief killed in U.S. strike in Kabul
- The US President announced that the U.S. had killed al-Qaeda chief Ayman al-Zawahiri who is said to be one of the world’s most wanted terrorists and suspected mastermind of the September 11, 2001 attacks through a drone strike in Kabul, Afghanistan.
- Officials said that Zawahiri’s presence in Kabul was a “clear violation” of a deal signed between the Taliban and the U.S. in Doha in 2020 which facilitated U.S. withdrawal from Afghanistan.
- It is the first known over-the-horizon strike by the U.S. on an al-Qaeda target in Afghanistan since American forces withdrew from the country on August 31, 2021.
- Meanwhile, the Indian officials are assessing the impact of Zawahiri’s killing on India.
- In 2014, Zawahiri announced the creation of al-Qaeda in the Indian Subcontinent (AQIS) and according to Home Ministry officials, the group was trying to rebuild al-Qaeda’s organisational machinery in India.
- However, the killing of the leader is expected to lower the morale of the cadre and sympathisers.
2. Rupee not collapsing, says FM
- The Union Finance Minister said that there is no collapse in the value of the rupee and the Reserve Bank of India (RBI) is intervening in the forex markets to curb volatility.
- The Minister further added that the rupee’s fluctuations are more with respect to the U.S. dollar and its performance is better compared to other currencies such as the British pound, the Japanese yen and the euro.
- The Ministry attributed global factors like the Russia-Ukraine war, increasing crude oil prices and tightening of global financial conditions as the causes for the depreciation of the rupee against the U.S. dollar.
H. UPSC Prelims Practice Questions
Q1. Consider the following statements with respect to Enforcement Directorate (ED) Director. (Level – Medium)
- The ED director is appointed as per provisions of the Prevention of Money Laundering Act of 2002.
- The ED Director is appointed by the Union government based on the recommendations of a committee chaired by the Union Home Minister and members comprising the Leader of Opposition in the Lok Sabha and Rajya Sabha as well as the Chief Justice of India.
- The ED director has a fixed two-year tenure which can be extended by one year each time, provided the total term does not exceed five years.
Which of the above statements is/are correct?
- 1 and 2 only
- 3 only
- 1, 2 and 3
- 1 only
CHECK ANSWERS:-
Answer: b
Explanation:
- Statement 1 is not correct, The ED director is appointed as per provisions of the Central Vigilance Commission Act, 2003.
- Statement 2 is not correct, The Centre appoints the ED director on recommendation of a committee with the Central Vigilance Commissioner as chairperson and other members comprising of Vigilance Commissioners, Home Secretary, Secretary DOPT and Revenue Secretary.
- Statement 3 is correct, The ED director has a fixed two-year tenure which can be extended by one year each time, provided the total term does not exceed five years.
Q2. Which of the following statements is/are correct with respect to forest cover in the North-eastern states of India? (Level – Difficult)
- All the North-eastern states of India have more than 70% of the geographical area under forest cover.
- All the North-eastern states of India have witnessed decline in forest area over the past decade.
Options:
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
CHECK ANSWERS:-
Answer: d
Explanation:
- Statement 1 is not correct, All the North-eastern states of India except Assam (34%) have more than 70% of the geographical area under forest cover.
- Statement 2 is not correct, All the North-eastern states of India except Assam have witnessed decline in forest area over the past decade.
Image Source: The Hindu
Image Source: The Hindu
Q3. Consider the following statements with respect to the Supreme Court collegium. (Level – Easy)
- This system evolved through judgments of the Supreme Court and has no backing law or provision of the Constitution.
- It consists of the Chief Justice of India and five other senior-most judges.
Which of the above statements is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
CHECK ANSWERS:-
Answer: a
Explanation:
- Statement 1 is correct, the Supreme Court collegium system evolved through judgments of the Supreme Court and not by an Act of Parliament or by a provision of the Constitution.
- Statement 2 is not correct, the Supreme Court collegium consists of the Chief Justice of India and four other senior-most judges of the SC.
Read more about the collegium system.
Q4. Consider the following statements with respect to Tobacco farming in India. (Level – Difficult)
- Tobacco is a drought tolerant, hardy and short duration crop.
- India is the world’s largest producer and exporter of Tobacco.
- Crop diversification programme, a sub-scheme of Rashtriya Krishi Vikas Yojana, aimed at shifting farmers away from tobacco cultivation is being implemented in all Indian states.
Which of the above statements is/are correct?
- 1 and 2 only
- 2 only
- 1 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: c
Explanation:
- Statement 1 is correct, Tobacco is one of the most economically significant agricultural crops in the world as it is a drought tolerant, hardy and short duration crop which can be grown on soils where other crops cannot be cultivated profitably.
- Statement 2 is not correct, India is the second largest producer and exporter after China and Brazil respectively.
- Statement 3 is not correct, Crop Diversification Programme (CDP), a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) to encourage farmers to shift to alternative crops/cropping systems since 2015-16 has been implemented in 10 tobacco-growing states of Andhra Pradesh, Bihar, Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal.
Q5. Atal Innovation Mission is set up under the (Level – Easy)
- Department of Science and Technology
- Ministry of Labour and Employment
- NITI Aayog
- Ministry of Skill Development and Entrepreneurship
CHECK ANSWERS:-
Answer: c
Explanation:
- The government has set up the Atal Innovation Mission (AIM) under the NITI Aayog in 2016.
- The objective of establishing AIM is to create a scientific temper and cultivate the spirit of curiosity and innovation among young minds.
Read more about Atal Innovation Mission.
I. UPSC Mains Practice Questions
- Critically analyze the Government’s decision to revive loss making public enterprises such as the BSNL. (250 words; 15 marks) (GS III – Economic Development)
- Lack of long term policy on cryptocurrency in India may force the government to play the catching up game in the coming years. Do you agree? Elaborate. (250 words; 15 marks) (GS II – Governance)
Read the previous CNA here.
CNA 03 Aug 2022:- Download PDF Here
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