13 May 2023: UPSC Exam Comprehensive News Analysis

CNA 13 May 2023:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
GOVERNANCE
1. Model Prisons Act
POLITY
1. Supreme Court on default bail
C. GS 3 Related
ECONOMY
1. Aviation leasing watchdog puts India on watchlist
D. GS 4 Related
E. Editorials
GOVERNANCE AND ECONOMY
1. Welfare spending has been getting a regular pruning
POLITY AND HEALTH
1. Diagnostic imaging of the Rajasthan Right to Health Act
HEALTH AND GOVERNANCE
1. Welcome initiative
F. Prelims Facts
G. Tidbits
1. Global Financial Innovation Network (GFIN)
2. London Interbank Offered Rate (LIBOR)
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions
FIP Magazine

Category: POLITY

1. Supreme Court on default bail

Syllabus: Judiciary – Judgments & Cases

Mains: Reforms in Bail law and process in India

Context: Supreme Court’s direction to lower courts on default bail.

Key Details:

  • The Supreme Court of India has directed lower courts to decide on pending default bail applications without relying on its own judgment of April 26.
  • In the Ritu Chhabaria versus Union of India case, the Supreme Court held that central agencies cannot deny accused persons their right to default bail by filing multiple supplementary chargesheets and seeking renewed custody.Β 
  • The judgment held that β€œthe right of default bail under Section 167(2) of the Criminal Procedure Code (CrPC) is not merely a statutory right, but a fundamental right that flows from Article 21 of the Constitution” to protect accused persons from the β€œunfettered and arbitrary power of the State”.

Significance of the order:

  • A judgment of the Supreme Court is considered the law of the land. Article 141 of the Constitution provides that the law declared by the Supreme Court shall be binding on all courts within India.
  • After the Ritu Chhabaria judgment was delivered, the Enforcement Directorate (ED) filed an urgent application in the Supreme Court to “recall” the verdict.Β 
  • The ED contended that the judgment contradicted past rulings of the Supreme Court. The ED also filed an appeal against the default bail granted to Manpreet Singh Talwar, an accused in a money laundering case who had relied on the Ritu Chhabaria verdict, arguing that the judgment would not apply to special laws such as the Prevention of Money Laundering Act.
  • The Supreme Court clarified that lower courts can decide on default bail applications independently of its judgment in the Ritu Chhabaria case.

Nut Graf: The Supreme Court of India has directed lower courts to decide on pending default bail applications independently of its judgment of April 26, which held that the right to default bail is a fundamental right. This follows a recall application filed by the Enforcement Directorate, which argued that the judgment contradicted past rulings of the Supreme Court.

2. London Interbank Offered Rate (LIBOR)

  • The Reserve Bank of India (RBI) has advised banks and other RBI-regulated entities asking them to ensure a complete transition away from the London Interbank Offered Rate (LIBOR) from July 1, 2023.
  • They have been advised to ensure no new transactions undertaken by them or their customers rely on or are priced using the U.S. Dollar LIBOR or the Mumbai Interbank Forward Outright Rate.Β 
  • In 2021, the Financial Conduct Authority, U.K. had said all LIBOR settings would either cease to be provided by any administrator or no longer be representative.

H. UPSC Prelims Practice Questions

Q1. 'Fisher effect' describes the relationship between: (Level-Difficult)
  1. Inflation and Unemployment
  2. Income Inequality and Economic Growth
  3. Inflation and Interest Rate
  4. Tax Rate and Tax Revenue
CHECK ANSWERS:-

Answer: c

Explanation:Β  The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates. The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.

Q2. With respect to Default Bail, which of the following statements is/are correct?
(Level-Difficult)
  1. According to Section 187(2) CrPC, an accused is entitled to default bail if the investigating agency failed to file a final charge sheet within 60 days from the date of remand.
  2. It is given to bailable offences only.

Options:

  1. 1 only
  2. 2 only
  3. Both
  4. None
CHECK ANSWERS:-

Answer: d

Explanation: Section 167 CrPC says that an arrested person will be entitled to default bail after 90 days in cases where the investigation relates to an offence punishable with death, imprisonment for life or imprisonment for a term of not less than 10 years and 60 days, where the investigation relates to any other offence.

  • It is granted to both bailable and non-bailable offences.
Q3. Consider the following statements with respect to the Prevention of Sexual 
Harassment (PoSH) Act, 2013: (Level-Medium)
  1. Every employer must constitute an Internal Complaints Committee (ICC) at each office or branch that has 20 or more employees.
  2. The Act protects the rights of all women who are working or visiting any workplace, in any capacity.
  3. If the woman cannot complain because of β€œphysical or mental incapacity or death or otherwise”, her legal heir may do so.

Which of the following statements is/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:

  • Every employer must constitute an Internal Complaints Committee (ICC) at each office or branch that has 10 or more employees.

Read more on the Prevention of Sexual Harassment (PoSH) Act, 2013.

Q4. Which of the following statements is incorrect with respect to LIBOR? (Level-Difficult)
  1. It is the global reference rate for unsecured short-term borrowing in the interbank market.
  2. The five currencies for which LIBOR is computed are the Swiss franc, euro, pound sterling, Japanese yen and US dollar.
  3. LIBOR is administered by the Intercontinental Exchange or ICE.
  4. The United Kingdom financial regulator that oversees LIBOR has announced that they’ll discontinue the index by 2030.
CHECK ANSWERS:-

Answer: d

Explanation: The United Kingdom financial regulator that oversees LIBOR has announced that they’ll discontinue the index by June 30, 2023.

Q5. Microbial fuel cells are considered a source of sustainable energy. Why? 
(Level-Difficult)
  1. They use living organisms as catalysts to generate electricity from certain substrates.
  2. They use a variety of inorganic materials as substrates.
  3. They can be installed in waste water, treatment plants to cleanse water and produce electricity.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
CHECK ANSWERS:-

Answer: c

Explanation: Microbial fuel cells are bio-electrochemical systems that drive a current by using bacteria and taking away bacterial interactions from nature. These devices consist of anode and cathode compartments separated by cation specific membrane which converts chemical energy into electrical energy through a catalytic reaction of microorganisms, which makes statement 1 correct. The substrates used in such cells are organic in nature such as glucose, acetate, arabitol, carboxymethyl cellulose, corn stover biomass, etc. which makes statement 2 incorrect. Statement 3 is correct as such cells are used in the treatment of wastewater.

CNA 13 May 2023:- Download PDF Here

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