29 Jan 2022: UPSC Exam Comprehensive News Analysis

A. GS 1 Related
B. GS 2 Related
POLITY AND GOVERNANCE
1. SC quashes a year’s suspension of 12 Maharashtra BJP MLAs
INTERNATIONAL RELATIONS
1. Philippines inks $375 mn BrahMos missile deal
C. GS 3 Related
D. GS 4 Related
E. Editorials
POLITY AND GOVERNANCE
1. To the poll booth, with no donor knowledge
2. Graft talk and the top court’s inexplicable silence
INTERNATIONAL RELATIONS
1. At the Centre
F. Prelims Facts
1. ‘Banks to transfer 15 NPAs worth ₹50,000 cr. to NARCL’
2. Study raises concerns on NeoCov
G. Tidbits
1. 6% of MSMEs owned by SC entrepreneurs
2. India’s largest electric vehicle charging station set up in Gurugram
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

A. GS 1 Related

Nothing here for today!!!

B. GS 2 Related

Category: POLITY AND GOVERNANCE

1. SC quashes a year’s suspension of 12 Maharashtra BJP MLAs

Syllabus: State Legislature – Structure, functioning, conduct of business, powers and privileges and issues arising out of these.

Prelims: Power of Speaker to suspend; Suspension of MLA;

Mains: Impact of irrational suspension on the democratic setup of the country.

Context: – The Supreme Court revoked the one-year suspension of 12 MLAs from the Maharashtra Assembly, calling it an “irrational” act that would impact the democratic set-up.

What was the plea before the Supreme Court?

• The 12 Maharashtra legislators were suspended for a year for “grossly disorderly conduct” in the House during the monsoon session in 2021.
• The suspended MLAs filed a writ petition in the Supreme Court against the Maharashtra Legislative Assembly and the State of Maharashtra and asked for the suspension to be quashed.

Know More About The Issue of Suspension of MLAs in CNA dated Jan 23, 2022.

What had both sides argued?

1. Arguments on behalf of the Suspended MLAs: –

• The suspension is “grossly arbitrary and disproportionate”.
• The suspension is a violation of laid-down procedure and is a denial of the principles of natural justice.
• The suspension violated their fundamental right to equality before the law under Article 14 as they were not given an opportunity to present their case.
• The MLAs have also contended that under Rule 53 of the Maharashtra Legislative Assembly Rules, the power to suspend can only be exercised by the Speaker, and it cannot be put to vote in a resolution as was done in this case.

Rule 53 of the Maharashtra Legislative Assembly Rules: Rule 53 states that the “Speaker may direct any member who refuses to obey his decision, or whose conduct is, in his opinion, grossly disorderly, to withdraw immediately from the Assembly”. The member must “absent himself during the remainder of the day’s meeting”.

2. Arguments by Maharashtra Legislative Assembly and the state:-

• The action was taken due to the “undisciplined and unbecoming behaviour” of the MLAs.
• The state had also said that a seat does not automatically become vacant if the member does not attend the House for 60 days but it becomes vacant only if declared so by the House. It was submitted that the House is not obligated to declare such a seat vacant.
• It was argued that the House had acted within its legislative competence and that under Article 212, courts do not have jurisdiction to inquire into the proceedings of the legislature.

Article 212 (1): Courts not to inquire into proceedings of the Legislature Article 212 (1) states that “the validity of any proceedings in the Legislature of a State shall not be called in question on the ground of any alleged irregularity of procedure”.

What did the court say about members being suspended beyond the ongoing session?

• On Procedure of Suspension:
  • The court agreed with the MLAs’ contention that the suspension had to follow the procedure laid down in Rule 53.
  • It said that Rule 53 only provides for the withdrawal of a member for the remainder of the day or in case of repeat misconduct in the same session, for the remainder of the session.
• On Duration of Suspension:
  • It said that the suspension of a member must be preferred as a short term or a temporary disciplinary measure for restoring order in the Assembly. Anything in excess of that would be an irrational suspension, the court said.
  • The court said that as per this rule, withdrawal of a member can only be done in case of the member’s conduct being “grossly disorderly”.
  • It termed the one-year suspension worse than “expulsion” or “disqualification” or “resignation” as far as the rights of the constituency to be represented in the House are concerned.
• On Judicial Review of Legislative procedures:
  • The court also considered whether the legislature had complete immunity from judicial review in matters of irregularity of procedure.
  • It ruled that procedures are open to judicial review on the touchstone of being unconstitutional, grossly illegal, irrational or arbitrary.

How the suspension beyond the ongoing session would impact the democratic setup?

• The court said that suspension beyond the ongoing session would mean the constituency the member represents in the House would remain unrepresented.
• It said that a thin majority coalition government could use such suspensions to manipulate the number of Opposition party members.
• In such cases, the Opposition will not be able to effectively participate in discussions/debates in the House fearing the suspension of its members for a longer period.
• Thus, it is violative of basic democratic values and would also impact the democratic setup.

C. GS 3 Related

Nothing here for today!!!

D. GS 4 Related

Nothing here for today!!!

E. Editorials

Category: POLITY AND GOVERNANCE

1. To the poll booth, with no donor knowledge

Syllabus: Important aspects of governance, transparency and accountability

Mains: Electoral bonds – Arguments against the scheme, government’s and court’s stand.

Context

As the states gear up for elections, the debate on electoral bonds has once again come into the limelight.

Electoral Bonds

• In 2021, the Union government authorized the State Bank of India to issue and encash a new tranche of electoral bonds.
• It is the 19th such arrangement since the scheme’s notification in 2018.
• The electoral bond scheme is designed to allow an individual, or corporates, to purchase bonds issued by the State Bank of India during notified periods of time.
• These instruments are issued in the form of promissory notes, and in denominations of ₹1,000; ₹10,000; ₹1 lakh; ₹10 lakhs and ₹1 crore.
• The buyer can donate these purchased bonds to any political party of their choice and the party can then encash it on demand.
• The purchasers are not obliged to disclose to whom they presented the bond, and a political party encashing a bond is compelled to keep the donor’s identity secret.

Read more on the Electoral Bonds Scheme.

Arguments against Electoral Bonds Scheme

• Anything but transparent
  • Ensuring citizens have access to information is an essential feature of a democracy.
  • But the electoral bond scheme has tainted the democratic process, by destroying the notion of transparency in political funding.
• No obligation on parties
  • The parties and funding companies have no obligations to provide details to the public about the donations received or made by them through electoral bonds.
  • Companies are further under no obligation to disclose the name of the party who they have funded.
• Weakened key restrictions
  • Amendments removed a previous prohibition that disallowed a company from donating more than 7.5% of its net profits over preceding three years.
  • A mandate that a company should be in existence for at least three years before it could make donations, aimed at discouraging shell corporations from funnelling money into politics, was also lifted.

Government’s stand

• The donor will know which party he is depositing money to and the political party will file a return with the Election Commission.
• Which donor gave to which political party is the only thing that will be anonymous.
• Voters do not have a fundamental right to know how political parties are funded.
• The scheme helps eliminate the role of black money in funding elections.

Court’s View

• According to the Court, since the transactions of the bonds are through banking channels, a person could look through every corporation’s financial statement available with the Registrar of Companies to know about the donations.
• The Supreme Court has held that voters have the right to freely express during an election and are entitled to all pieces of information that give purpose to the right.
• To participate in the electoral process in a meaningful way and to choose one’s votes, a citizen must be aware of the identity of those backing the candidates.
• The affidavits filed by the Election Commission of India in the Supreme Court have demonstrated that the scheme, if anything, augments the potential role of black money in elections; it does so by removing existing barriers against shell entities.

Need for Judicial Interventions

• One of the important functions of an independent judiciary in a democracy is to check the fundamentals of the democratic process.
• Governments derive their legitimacy from elections, and it is elections that grant governments the mandate to pursue their policy goals.
• The electoral legitimacy of the government is questionable if the electoral process is questionable. And since the government itself cannot regulate the process that it is subject to every five years, the courts remain the only independent body that can adequately enforce the ground rules of democracy.
• A delay in adjudication cannot be afforded as the integrity of the electoral process is at stake.

Read more on this topic covered in the 9th March 2021 Comprehensive News Analysis.

F. Prelims Facts

1. ‘Banks to transfer 15 NPAs worth ₹50,000 cr. to NARCL’

Context: – Banks have finalized plans to transfer 15 Non-Performing Asset (NPA) accounts to the National Asset Reconstruction Company Ltd. (NARCL), or the ‘bad bank’.

What is a Bad bank?

• A ‘bad bank’ is a bank that buys the bad loans of other lenders and financial institutions to help clear their balance sheets.
• The bad bank then resolves these bad assets over a period of time.
• Know More About Bad Banks.

National Asset Reconstruction Company Ltd. (NARCL): 

• NARCL has been incorporated under the Companies Act and has applied to the Reserve Bank of India for a license as an Asset Reconstruction Company (ARC).
• NARCL has been set up by banks to aggregate and consolidate stressed assets for their subsequent resolution.
• Know More About National Asset Reconstruction Company Ltd. (NARCL).

H. UPSC Prelims Practice Questions

Q1. Which of the following statements is/are correct?

1. The ASEAN Digital Ministers (ADGMIN) meeting is an annual meeting of Telecom Ministers of 10 ASEAN countries and ASEAN’s dialogue partner countries.
2. Recently, the Ministers’ meeting approved the India-ASEAN Digital Work Plan  2022.

Options:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

CHECK ANSWERS:-

Answer: c

Explanation:

• The ADGMIN is an annual meeting of Telecom Ministers of 10 ASEAN (Association of South-East Asian Nations) countries.
• The meeting discussed and deliberated various matters relevant to strengthening regional digital cooperation in the spirit of digital inclusion and integration.
• The Ministers’ meeting approved the India-ASEAN Digital Work Plan 2022.
• The work plan includes a system for combating the use of stolen and counterfeit mobile handsets, WiFi Access network interface and Communication Technologies such as Internet of Things (IoT), 5G, Advanced Satellite Communication, Cyber Forensics, etc.
• Hence both the Statements are Correct.

Q2. Generally, an FTA between two countries covers which of the following areas?

1. Trade in Goods
2. Trade in Services
3. Investments
4. Intellectual Property Rights
5. Sanitary and Phytosanitary Measures

Options:

1. 1 and 2 only
2. 1, 2 and 3 only
3. 1, 4 and 5 only
4. 1, 2, 3, 4 and 5

CHECK ANSWERS:-

Answer: d

Explanation:

• A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, etc.
• FTAs, a form of trade pacts, determine the tariffs and duties that countries impose on imports and exports with the goal of reducing or eliminating trade barriers, thus encouraging international trade.
• Such agreements include clauses on trade facilitation and rule-making in areas such as investment, intellectual property, government procurement, technical standards and sanitary and phytosanitary issues, etc.
• Hence Option D is correct.

Q3. Which of the following statements is/are correct?

1. The Protocol on Visits to Religious Shrines 1974 is a bilateral agreement between India and Pakistan facilitating both nationals to visit certain select religious shrines in both countries.
2. It provides visa-free travel to the pilgrims.
3. The protocol enables religious pilgrimage between the two countries without any discrimination on the lines of religion or sect.

Options:

1. 1 only
2. 1 and 2 only
3. 1 and 3 only
4. 1, 2 and 3

CHECK ANSWERS:-

Answer: c

Explanation:

• The Protocol on Visits to Religious Shrines 1974 is a bilateral agreement between India and Pakistan facilitating Indian and Pakistani nationals to visit certain religious shrines in both countries. Hence Statement 1 is correct.
• It does not provide visa-free travel to the pilgrims. Hence Statement 2 is not correct.
• Under the 1974 protocol between countries, visits to religious shrines are being facilitated regularly. Hence Statement 3 is correct.

Q4. Which of the following statements is/are correct?

1. The BRT Tiger Reserve is located in Tamil Nadu.
2. It is a critical habitat providing connectivity for wildlife between the Eastern and the Western ghats landscape.

Options:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

CHECK ANSWERS:-

Answer: b

Explanation:

• Bandipur Tiger Reserve is situated in the contiguous landscape spread in the two revenue districts of Southern Karnataka namely Mysore and Chamarajanagar. Hence Statement 1 is not correct.
• It is considered to be the wildlife corridor that connects the Eastern Ghats to the Western Ghats which in turn facilitates gene flow between the population species inhabiting both the mountain ranges. Hence Statement 2 is correct.

Q.5 Consider the following statements:

1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
2. One of the tasks of PNGRB is to ensure competitive markets for gas.
3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.

Which of the statements given above are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

CHECK ANSWERS:-

Answer: b

Explanation:

• The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under the Petroleum and Natural Gas Regulatory Board Act, 2006. PNGRB is not the first regulatory body set up by the Government of India. Hence Statement 1 is not correct.
• PNGRB Objectives: –
  • To protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas.
  • To promote competitive markets and for matters connected therewith or incidental thereto. Hence Statement 2 is correct.
• Currently, the electricity sector has state-level regulatory commissions:
  • The Petroleum and Natural Gas Regulatory Board (PNGRB) is the first level of appeal for regulatory disputes.
  • Appeals against the PNGRB order go to the Appellate Tribunal for Electricity.
  • Hence Statement 3 is correct.

I. UPSC Mains Practice Questions

1. India’s defence export potential is still largely unrealized. Comment. (250 words; 15 marks)[GS-3, Defence]
2. What is a ‘Bad Bank’? List out the objectives behind setting up ‘Bad Bank’? (250 words; 15 marks)[GS-3, Economy]