IASbaba Press Information Bureau (PIB)- 9th May to 15th May, 2016

  • May 18, 2016
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IASbaba's Daily Current Affairs May 2016, IASbaba's Daily News Analysis
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New Division for Centre-State Relations in MEA

(Topic: Functions and responsibilities of Union and the States, Coordination with Union and States)

About- Ministry of External Affairs has set up a new division – “States Division” – in the Ministry in October 2014


Aim- To coordinate with States and Union Territories for further facilitation of their efforts to promote their exports and tourism and attract more overseas investments and expertise

Division headed by- Joint Secretary, assisted by two Deputy Secretary level officers and supported by a section.

Functions of the States Division-

  • To coordinate facilitation of efforts of states in promoting their exports, tourism and attract more overseas investment and expertise.
  • To coordinate facilitation of efforts in these areas between our Mission/Post(s) and State/Union Territories Governments as well as foreign diplomatic and trade missions in India.
  • To assist States and Union Territories by sharing with them, where required, the Ministry’s experience and expertise through training and capacity building in areas relating to external linkages relating to trade, investment, cultural and other such areas.


India–South Korea Pact for Development of Ports

(Topic: (Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests)

About- MoU was signed between the Ministry of Shipping of the Republic of India and the Ministry of Oceans and Fisheries of the Republic of Korea on Cooperation in Port related Industry


  • Cooperation for strengthening administrative
  • Technical and human resources through exchanges
  • To promote mutual benefits in the fields of port development and operation.

MoU envisages-

  • Cooperation in areas including sharing of technology and experiences in port development and operation and joint participation in port-related construction
  • Building and engineering projects of mutual interest amongst others, by both the countries


India and WHO sign a landmark agreement for Global promotion of Traditional Systems of Medicine

(Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests)

About- Ministry of AYUSH, Government of India and the World Health Organization (WHO) have signed an historic Project Collaboration Agreement (PCA).

Aim- Cooperation on promoting the quality, safety and effectiveness of service provision in traditional and complementary medicine


  • It is titled as ‘Co-operation on promoting the quality, safety and effectiveness of service provision in traditional and complementary medicine between WHO and AYUSH, India, 2016-2020’
  • Aims to- Support WHO in the development and implementation of the ‘WHO Traditional and Complementary Medicine Strategy: 2014-2023’ and will contribute to the global promotion of traditional Indian Systems of Medicine.
  • PCA for the period 2016-2020 will deliver for the first time WHO benchmark document for training in Yoga, and WHO benchmarks for practice in Ayurveda, Unani and Panchakarma
  • Contribute significantly to the strengthening of national capacities in ensuring the quality, safety and effectiveness of traditional medicine including in establishing regulatory frameworks for traditional medicine products and practice and promote their integration in national healthcare systems.


Inter-Governmental Agreement between India and Mauritius on cooperation in cooperatives and related fields

(Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests)

About- Union Cabinet chaired by PM has given its approval for signing of an Inter-Governmental Agreement between India and Mauritius on cooperation in cooperatives and related fields.

Duration- Five years after which it will be automatically extended for another five years.

Aim- Provides for promoting cooperation through short and medium term programmes within the framework of the joint activities mentioned in the Agreement.


  • Government of Mauritius has shown keen Interest to develop Institutional Mechanism between Cooperative Development Fund (CDF) set up by it and National Cooperative Union of India (NCUI) so as to benefit from NCUI’s experience in Cooperative Development.
  • A joint meeting was held in September, 2012 in Department of Agriculture, Cooperation & Farmers Welfare followed by Ministerial level meeting after a year (in September, 2013) for discussing the possibility of signing an MoU between the two countries for-
    • Exchange of legislation governing cooperatives
    • Exchange of information and technicalities pertaining to the cooperative sector
    • Establishment of institutional linkages and deputation of experts under ITEC programme


MoU between Securities and Exchange Board of India and Financial Services Regulatory Authority, Abu Dhabi for Mutual Co–operation and Technical Assistance

(Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests)

MoU promotes-

  • Development of economic links and cooperation between the two signatories
  • Help create conditions for development of securities markets in the two countries
  • Contribute towards strengthening the information sharing framework between the two regulators


India and Mauritius sign the Protocol for amendment of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains 

(Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests)

Key features of the Protocol are as under-

Source-based taxation of capital gains on shares:

  • India gets taxation rights on capital gains arising from alienation of shares acquired on or after 1st April, 2017 in a company resident in India with effect from financial year 2017-18, while simultaneously protection to investments in shares acquired before 1st April, 2017 has also been provided.
  • In respect of such capital gains arising during the transition period from 1st April, 2017 to 31st March, 2019, the tax rate will be limited to 50% of the domestic tax rate of India, subject to the fulfillment of the conditions in the Limitation of Benefits Article.
  • Taxation in India at full domestic tax rate will take place from financial year 2019-20 onwards.

Limitation of Benefits (LOB)

  • Benefit of 50% reduction in tax rate during the transition period from 1st April, 2017 to 31st March, 2019 shall be subject to LOB Article, whereby a resident of Mauritius (including a shell / conduit company) will not be entitled to benefits of 50% reduction in tax rate, if it fails the main purpose test and bonafide business test.
  • A resident is deemed to be a shell/ conduit company, if its total expenditure on operations in Mauritius is less than Rs. 2,700,000 (Mauritian Rupees 1,500,000) in the immediately preceding 12 months.

Source-based taxation of interest income of banks 

  • Interest arising in India to Mauritian resident banks will be subject to withholding tax in India at the rate of 7.5% in respect of debt claims or loans made after 31st March, 2017.
  • Interest income of Mauritian resident banks in respect of debt-claims existing on or before 31st March, 2017 shall be exempt from tax in India.

Protocol provides for

  • Updation of Exchange of Information Article as per international standard
  • Provision for assistance in collection of taxes, source-based taxation of other income, amongst other changes.


  • Protocol will tackle the long pending issues of treaty abuse and round tripping of funds attributed to the India-Mauritius treaty, curb revenue loss, prevent double non-taxation, streamline the flow of investment and stimulate the flow of exchange of information between India and Mauritius.
  • Improve transparency in tax matters and will help curb tax evasion and tax avoidance.


Quality Check of Imported Food Items

(Topic: Quality check of food items)


 Steps taken by FSSAI for quality control measure for imported food products which are

  • Standards have been developed and regulations framed in different categories of food products and machinery created for their enforcement.
  • Pre-arrival Documents Scrutiny (PADS) has been implemented in online Food Clearance System (FICS) from 02.02.2016 which is currently operational in all non-single window ports namely Chennai, Kolkatta and Tuticorin.
  • Integrated Declaration form has been developed by Customs on the basis of inputs given by FSSAI.
  • FSSAI has developed its Risk based import prioritization system and is in touch with Customs, Department of Revenue for its integration with their system.

Reason for taking such steps-

  • Food Safety and Standards Authority of India (FSSAI) has informed that on the basis of International Food Safety Authorities Network (INFOSAN) alert received, the matter was taken up by the FSSAI with various State Governments.
  • As per data available in the Food Import Clearance System (FICS), no import of plastic/synthetic rice has been noticed during last three years.
  • State Governments have also informed that no incidence of imported plastic rice has been reported in their respective states.
  • Instances of use of calcium carbide for ripening of fruits have been brought to the notice of the FSSAI through Action Taken Reports from the Food Safety Departments of the States/UTs.
  • Regulation of Food Safety and Standards (Prohibition and Restriction to Sales) Regulations, 2011 prohibits use of Calcium Carbide in ripening of fruits.
  • Health hazards reported due to use of Calcium Carbide in ripening of fruits include carcinogenic effect, neurological disorders and stomach disorders.


Steps taken for checking the use of such practices include-

  • All State/UT Governments have been well informed about the harmful effects of calcium carbide as well as the methodology for detection of Acetylene in godowns and storage chambers.
  • All Commissioners of Food Safety have informed about the permitted concentration of ethylene for ripening of fruits
  • Increase  public awareness  regarding “consuming fruits ripened artificially by Calcium Carbide may pose health problems’


Economic and Social Development through Sports’

(Topic: Government schemes and policies for development of youth’s)

About- Ministry of Youth Affairs and the Sports Authority of India are implementing a number of schemes aiming at mass participation in sports and achieving excellence in sports for development of youth in the country.

Major schemes implemented-

  • Rashtriya Yuva Sashaktikaran Karyakaram,
  • National Service Scheme,
  • Rajiv Gandhi National Institute of Youth Development,
  • Scheme of Assistance to National Assistance Federations,
  • National Sports Development Fund,
  • Scheme of Human Resource Development in Sports,
  • Scheme of Special Cash Awards for Winners of medals in international sports events and their coaches,
  • Scheme of Pension to Meritorious Sportspersons,
  • Scheme of National Sports Awards-> Rajiv Gandhi Khel Ratna, Arjuna Awards, Dronacharya Awards, Dhyanchand Awards
  • Scheme of Sports & Games for Persons with Disabilities.

New scheme, Khelo India- National Program for Development of Sports, which comprises of 3 major components, namely- Annual Competitions + Talent Search + Sports Infrastructure


Major schemes being implemented by Sports Authority of India (SAI) are- National Sports Talent Contest (NSTC) + Army Boys Sports Companies (ABSC) + Special Area Games (SAG) + SAI Training Centres (STC) + Centres of Excellence (COX) and SAI National Sports Academies

Outcome of 2nd meeting of All India Council of Sports (AICS)-

  • Suggested that Indian Olympic Association (IOA) and National Sports Federations (NSFs) should arrange for medical insurance scheme for its national medal winners and international sportspersons.
  • It was decided in the meeting of AICS to take up the proposal with IOA and NSFs to provide medical insurance coverage to all national medal winners and international sportspersons.
  • No proposal at present on the part of the Ministry of Youth Affairs & Sports for providing medical insurance to national/international level sportspersons of the country, as sportspersons undergoing training at coaching camps organized at


Future of Work in India and Young People’s Aspirations

(Topic: Youth development)

About- Ministry of Labour and Employment, V.V. Giri National Labour Institute and International Labour Organization are organizing an event on “The Future of Work in India and Young People’s Aspiration”.

Focus on-                  

  • India’s youth and their aspirations in the world of work.
  • Highlight both challenges in the labour market and how youth can be an agent of change

Youth opportunity-

  • World of work is undergoing a major process of change, there are several forces transforming it, from the onward march of technology and the impact of climate change to the changing character of production and employment, and demographics to name a few. At the same time, the youth of India are facing an exciting period of change and new opportunities.
  • With higher levels of education, access to information and awareness of the world around them, young people across the country are seeking to make the transition from school to work and contribute to the country’s development through employment and entrepreneurship.
  • It is necessary to understand and to respond effectively to new challenges in the world of work in order to be able to advance social justice.


Cabinet approves National Intellectual Property Rights Policy

(Topic: National Intellectual Property Rights Policy)

About- Union Cabinet approved the National Intellectual Property Rights (IPR) Policy that will lay the future roadmap for intellectual property in India.

Policy recognises- Abundance of creative and innovative energies that flow in India, and the need to tap into and channelize these energies towards a better and brighter future for all.


  • To create and exploit synergies between all forms of intellectual property (IP) concerned statutes and agencies.
  • Sets in place an institutional mechanism for implementation, monitoring and review
  • To incorporate and adapt global best practices to the Indian scenario
  • Policy shall weave in the strengths of-> Government + Research and development organizations + Educational institutions + Corporate entities including MSMEs + Start-ups and other stakeholders in the creation of an innovation-conducive environment
  • Stimulates creativity and innovation across sectors, as also facilitates a stable, transparent and service-oriented IPR administration in the country.

Broad contours of the National IPR Policy are as follows-

Vision Statement-

  • An India where creativity and innovation are stimulated by Intellectual Property for the benefit of all
  • An India where intellectual property promotes advancement in science and technology, arts and culture, traditional knowledge and biodiversity resources
  • An India where knowledge is the main driver of development, and knowledge owned is transformed into knowledge shared.

Mission Statement:

  • Stimulate a dynamic, vibrant and balanced intellectual property rights system in India to foster creativity and innovation and thereby, promote entrepreneurship and enhance socio-economic and cultural development
  • Focus on enhancing access to healthcare, food security and environmental protection, among other sectors of vital social, economic and technological importance.


  • IPR Awareness: Outreach and Promotion – To create public awareness about the economic, social and cultural benefits of IPRs among all sections of society.
  • Generation of IPRs – To stimulate the generation of IPRs
  • Legal and Legislative Framework – To have strong and effective IPR laws, which balances the interests of rights owners with larger public interest
  • Administration and Management – To modernize and strengthen service-oriented IPR administration
  • Commercialization of IPRs – Get value for IPRs through commercialization.
  • Enforcement and Adjudication – To strengthen the enforcement and adjudicatory mechanisms for combating IPR infringements.
  • Human Capital Development – To strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs.

National Intellectual Property Rights (IPR) Policy will endeavour for a “Creative India; Innovative India”



General Framework Agreement on Renewable Energy Cooperation

(About- Renewable energy)

About- Union Cabinet chaired by PM was apprised of a General Framework Agreement (GFA) on Renewable Energy Cooperation between India and United Arab Emirates (UAE).

GFA signed on- 11th February this year during the state visit of Crown Prince of UAE

Objective of GFA-

  • To establish the basis for a framework through which-> Extensive projects + Investments + Other forms of commercial endeavours + Cooperation in research and development in renewable and clean energy + Knowledge sharing platforms could be enacted on the basis of mutual benefit + Quality and reciprocity between the Parties.
  • Cooperation between-> India and UAE in the field of new and renewable energy technologies.
  • Provide opportunity for-> Exploring potential renewable energy projects for investments
  • Continue cooperating in-> International Solar Alliance
  • Exploring avenues of cooperation in-> Research + Development in renewable
  • Developing-> Knowledge sharing mechanisms through which to build upon the human capital of the Parties
  • Exploring establishing-> Joint fund between the Parties to facilitate investment forms of cooperation as mutually agreed by the Parties.


Strengthening the security on borders with Pakistan, China and Bangladesh

(About- Security challenges and their management in border areas; linkages of organised crime with terrorism)

About- Government has adopted multi-pronged strategy to strengthen the security on borders with Pakistan, China and Bangladesh

Inter-alia includes-

  • Area domination
  • Round the clock surveillance & patrolling on the borders
  • Establishment of Border Out Posts (BoPs)
  • Construction of border roads
  • Upgradation of intelligence set up and closes interaction with local
  • Force multipliers
  • High-Tech surveillance equipment to enhance the surveillance of border
  • Deployment of technological solutions on pilot project has been approved

Cross Border Terrorism-

  India and Pakistan-

  • Continued cross border terrorism against India emanating from-> Territory under Pakistan’s control remains a core concern for the country.
  • India has repeatedly called upon Pakistan-> To abide by its commitment made and repeated on several occasions at the highest level for not allowing territory under its control for aiding and abetting in any manner terrorism directed against India.
  • It has also been stressed that Pakistan should take determined action-> To dismantle terrorist infrastructure on the territory under its control.

  India and Bangladesh-

  • India and Bangladesh have-> various institutional mechanisms in the area of security cooperation.
  • Regular interaction between-> Border Guarding Forces of the two Countries.
  • Cross border issues have been taken up at-> various bilateral levels.
  • Government of Bangladesh has assured that-> no anti-India activities would be allowed in its soil and has followed a policy of zero tolerance towards terrorism and extremism.

  India and China-

  • India and China have, on several occasions, reiterated their resolute opposition to terrorism in all its forum and manifestations.
  • India-China cooperation in counter terrorism includes-> Exchange of views + Information on terrorism affecting the two countries.


Environment Minister launches Web-Based Application on Integrated Waste Management System 

(Topic: Waste management)

About- Government has launched a web-based application on Integrated Waste Management System (IWMS) – www.iwms.nic.in for better management of waste.


  • Provide an opportunity to-> All the industries dealing in hazardous waste, to apply online.
  • To enhance transparency in the working of-> Ministry and other Centre/State level regulatory bodies
  • To reduce time taken for-> Processing applications + Seeking various types of permissions under the recently notified waste management regulations.
  • To being a single window access-> Application is expected to expedite the way the permission is granted and way the analysis could be done not only for authorization and consents, but also for import/export permission under the rules.

Key benefits of the web-based application include

  • Availability of State-wise and national database on generation of various types of waste and number of waste generating/ processing industrial units in the country at one place.
  • Help the authorities further to identify the problem areas and plan accordingly.
  • Will bring more transparency in the functioning of the Ministry and other State Authorities.
  • Conversion of the current legacy paper house to a green office i.e. a virtual office moving ahead with all its relevant required data on its own private cloud.
  • Single Window Access – Bridging the gap between industries and other waste generators + Recyclers + Operators of disposal facilities + State Pollution Control Board (SPCBs)/Pollution Control Committees (PCCSs) + Central Pollution Control Board (CPCB) + Municipalities and the concerned ministries for environmentally sound waste management of such wastes.
  • Quick decision on applications by the authorities; earlier, it was arduous and time-taking, due to need of physical movement of the papers
  • Better coordination and availability of information with the User Agencies (entrepreneurs/industries), Central and State authorities that will further help in achieving the objectives of ‘Ease of Doing Businesses’ and Make in India’, significantly.
  • Encapsulation of all the information from state bodies and provide consolidated information at one place, which will help the Central and State authorities for effective monitoring.
  • Phase- II (upgraded version) of the (IWMS) is expected to encompass generation of annual report from the annual return filed by the industries and other stakeholders for various type of waste generated in the country.
  • Upgraded version will provide customized GIS based information on waste management in the country.
  • GIS maps will be generated and integrated with underlying information to provide an excellent visual outlook to the available data.


Conservation of natural resources

(Topic: Conservation, environmental pollution and degradation, environmental impact assessment)

National Mineral Policy (NMP), 2008 states that-

  • Augmentation of reserve base through improvement in mining methods
  • Beneficiation and utilisation of low grade ore
  • Recovery of associated minerals
  • All mining shall be undertaken within the parameters of a comprehensive Sustainable Development Framework which, inter-alia includes guiding principles for a miner to leave the mining area in a better ecological condition after mining and for optimum utilization of the country’s natural mineral resources
  • IBM carries out periodical inspections of mines to monitor conservation of minerals, systematic and scientific mining and protection of environment in the leasehold areas of minerals other than minor minerals, coal and atomic minerals.


Environment Assessment (EIA) Notification, 2006 on 14th September, 2006 under the provisions of Environment (Protection) Act, 1986-


It is to-

  • Regulate the grant of environment clearance for various projects including mining projects.
  • Impact on environment due to mining project is assessed by an EIA study.
  • Based on the same, Environmental Management Plan is prepared which is considered and the Environment Clearance is granted stipulating conditions to regulate impact on environment due to the project.

Forest (Conservation) Act, 1980-

  • Stipulates appropriate mitigation measures, such as, creation and maintenance of compensatory afforestation, realization of Net Present Value of the diverted forest land, implementation of wildlife conservation plan (wherever required), phased reclamation of mined out area, demarcation of boundary of mining lease etc.
  • Safeguards are in place to ensure that approvals under the Forest (Conservation) Act, 1980 for diversion of forest land for mining are accorded only after ascertaining that the area of forest land to be diverted is bare minimum and its diversion for non-forest purpose/mining is unavoidable.
  • Government has not set up/ does not propose to set up any constitutional mechanism for conservation of natural resources in the country.


Approval of National Hydrology Project for Flood Forecasts 

(Topic: Disaster management)

About- Govt. has approved the National Hydrology Project under Central Sector Scheme as an Externally Aided Project with support from the World Bank


  • National Hydrology Project (NHP) envisages establishing a system for timely and reliable water resources data acquisition, storage, collation and management.
  • Facilitate informed decision making through Decision Support Systems (DSS) for water resources assessment, flood management, reservoir operations, drought management, etc.
  • Under the Project, it is proposed to build capacity of the State and Central sector organizations in water resources management through the use of Information Systems and adoption of State-of-the-art technologies like Remote Sensing.

Phase-wise break­ up of the project-

  • Stage-1: For duration of 4 years
  • Stage-2: For duration of 4 years

It is a people and farmer centric programme as information on water will help in predicting water availability and help farmers to plan their crops and other farm related activities

Government has Identified Three Areas for use of Information Technology (IT) in Fisheries

(Topic: Science and technology- developments and their applications effects in everyday life)

About- Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture and Farmers Welfare has identified three areas for use of Information Technology (IT) in fisheries.

Three areas namely –

  • Dissemination of information to marine fishers on Potential Fishing Zone (PFZ)
  • Weather assessment, forecasting & forewarning and
  • Real time monitoring and tracking of fishing vessels.


  • Indian National Centre for Ocean Information Services (INCOIS), Ministry of Earth Sciences (MoES) presently provides the “Potential Fishing Zone (PFZ) Advisories” using satellite data and Geographic Information System (GIS).
  • Potential Fishing Zone (PFZ) advisories are disseminated through Electronic Display Boards installed at fishing harbours/fish landing centers/ fishing hamlets/fishermen cooperative societies, local cable TV networks, radio, INCOIS web site, email, Interactive Voice Response System (IVRS), mobile applications viz. Fisher Friend Mobile Application (FFMA) etc.
  • Dissemination of fishery related information is also being done through web based media networks like mKRISHI, NeGPA and other web portals including social media.
  • Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture and Farmers Welfare under the Centrally Sponsored Scheme on Development of Marine Fisheries, Infrastructure and Post Harvest Operations provides financial assistance for supply of safety kit consisting of GPS, Communication equipment, echo-sounder and search and rescue beacon to fishermen.


Schemes to Improve the Condition of Cooperative Milk Federations and to Promote Milk Production in the Country

(Topic: Food processing industry in India- scope and significance, location, upstream and downstream requirements, supply chain management)

Aim- To improve the condition of cooperative milk federations and to promote milk production in the country

Following schemes implemented-

National Dairy Plan (Phase-I)

Implemented through- National Dairy Development Board

Objectives of Phase I-

  • To help increase the productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk.
  • To help provide rural milk producers with greater access to the organized milk-processing sector.

Nation Programme for Bovine Breeding and Dairy Development-

Merger four existing schemes- Intensive Dairy Development Programme (IDDP) + Strengthening Infrastructure for Quality & Clean Milk Production (SIQ&CMP) + Assistance to Cooperatives and National Project for Cattle & Buffalo Breeding.


  • To enhance productivity of milch animals and create dairy infrastructure for improved procurement, processing and marketing of milk.
  • Provision for rehabilitation assistance to improve the condition of sick milk cooperatives

Dairy Entrepreneurship Development Scheme-

Dairy Entrepreneurship Development Scheme (DEDS) is implemented from September, 2010 through National Bank for Agriculture and Rural Development (NABARD) across the country.

Aim- To generate self-employment opportunities in the dairy sector, covering activities such as enhancement of milk production, procurement, preservation, transportation, processing and marketing of milk by providing back ended capital subsidy at 25% of the project cost to the General Category (@33.33% of the project cost to SC/ST category) farmers/beneficiaries for bankable projects through NABARD subject to the norms of the scheme

Steps to curb the menace of Black Money

(About-Money laundering and its prevention)


About- Government has taken various decisions and steps to curb the menace of black money both within and outside the country in last two years.

Some of the major decisions and actions taken-

Sustained steps taken for curbing black money- 

  • A new Black Money Acthas been enacted with strict penalty provisions.
  • Special Investigation Team has been constituted which is chaired by ex-Supreme Court Judge Justice M.B. Shah
  • A new Income Disclosure Scheme is formulated for domestic black money
  • Enhanced enforcement measures have resulted in un-earthing of tax evasionof approximately Rs 50,000 Crore of indirect taxes and undisclosed income of Rs 21,000 Crore (Prov.)
  • Value of goods seizedon account of smuggling activities has increased to Rs 3,963 Crore in the last two years (32% increase over corresponding two previous years)
  • Prosecutionhas been launched in 1466 cases as against 1169 cases in the previous two years (25% increase)


Amendments made in Prevention of Money-laundering Act, 2002, via Finance Act, 2015-

  • Definition of proceeds of crime under PMLA has been amended to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited.
  • Section 8(8) has been inserted in PMLA providing for restoring confiscated property or part thereof, on the directions of Special Court to claimants with a legitimate interest in the property, who may have suffered a quantifiable loss as a result of the offences of money laundering.
  • Section 132 of Customs Act which deals with offence relating to false declaration / documents in the transaction of any business relating to Customs has been made predicate offence under PMLA to curb trade based money laundering
  • Offence of wilful attempt to evade any tax, penalty or interest referred to in section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 has been made a scheduled offence under PMLA.


Foreign Exchange Management Act (FEMA), 1999 has been amended vide Finance Act, 2015.

Amendments provide for seizure and confiscation of value equivalent, situated in India, in case any person is found to have acquired any foreign exchange, foreign security or immovable property, situated outside India, in contravention of Section 4 of FEMA

Pact with other countries regarding money laundering and terror funding

(About- Money laundering and its prevention)

About- Financial Intelligence Unit – India (FIU-IND) has signed MoU with 30 counterpart FIUs of other countries.

FIU-IND- Also a member of Egmont Group of FIUs, an international organization with a membership of 151 FIUs

Aim- Sharing the information pertaining to money laundering and terror funding.

Participation with other countries to control money laundering-

  • India is also a member of the Financial Action Task Force (FATF), an intergovernmental body which makes recommendations relating to combating money laundering, terrorist financing and serious tax offences.
  • India participates in various regional/global meetings to put India’s position with regard to steps taken to combat money laundering and terrorist financing.


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