DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 3rd March 2023

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  • March 3, 2023
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Porter prize

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Syllabus

  •   Prelims – Polity (Government policies), Science and Technology (Health)

Context: The Union Health and Family Welfare Ministry received the Porter Prize 2023 recently.

About Porter prize:

  • Porter Prize is named after award-winning economist Michael E. Porter.
  • The award recognized the Government’s strategy in managing COVID-19, along with the approach, and involvement of various stakeholders, especially the involvement of ASHA workers in the industry to create PPE Kits.
  • The award was presented to the Ministry of Health and Family Welfare (MoHFW) at an event organized by Institute for Competitiveness (IFC) and Stanford University.
  • The theme of the two-day conference was “The Indian Economy 2023: Innovation, Competitiveness, and Social Progress”.

Source: AIR

Previous Year Questions

Q.1) Consider the following: (2022)

  1. Aarogya Setu
  2. COWIN
  3. DigiLocker
  4. DIKSHA

Which of the above are built on top of open-source digital platforms?

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

Q.2) In the context of vaccines manufactured to prevent the COVID-19 pandemic, consider the following statements: (2022)

  1. The Serum Institute of India produced a COVID-19 vaccine named Covishield using an mRNA platform.
  2. The Sputnik V vaccine is manufactured using a vector-based platform.
  3. COVAXIN is an inactivated pathogen-based vaccine.

Which of the statements given above is correct?

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

Social Stock Exchange

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Syllabus

  •   Prelims – Economy

Context: Recently, the National Stock Exchange of India received final approval from the markets regulator Securities and Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE).

About Social Stock Exchange:

  • Social Stock Exchange(SSE) is a platform that allows investors to invest in select social enterprises or social initiatives.
  • The Union Budget ( 2019 –20 )proposed to initiate steps for creating a stock exchange under the market regulator’s ambit.
  • SEBI constituted a group under the chairmanship of Tata group veteran Ishaat Hussain in 2019.
  • In 2020, SEBI again set up the Technical Group(TG) under Harsh Bhanwala, ex-Chairman, NABARD for getting further expert advice and clarity on SSE.
  • The Social Stock Exchange (SSE) is a novel concept in India and such a course is meant to serve private and non-profit sector providers by channeling greater capital to them.
  • Global Examples: SSE exists in countries such as Singapore, and the UK among others. These countries allow firms operating in social sectors to raise risk capital.

Objectives:

  • The SSE would function as a separate segment within the existing stock exchangeand help social enterprises raise funds from the public through its mechanism.

Salient Features: 

  • Retail investors can only invest in securities offered by for-profit social enterprises (SEs) under the Main Board.
  • In all other cases, only institutional investors and non-institutional investors can invest in securities issued by SEs.

Eligibility: 

  • Any non-profit organization (NPO) or for-profit social enterprise (FPSEs) that establishes the primacy of social intent would be recognized as a social enterprise (SE), which will make it eligible to be registered or listed on the SSE.
  • NPOs can raise money either through the issuance of Zero Coupon Zero Principal (ZCZP) Instruments from private placement or public issue, or donations from mutual funds.

About Zero Coupon Zero Principal (ZCZP) Instruments :

  • These are issued by a Not-for-Profit Organisation (NPO) which will be registered with the Social Stock Exchange (SSE) segment of a recognized stock exchange.
  • The Finance Ministry has declared zero coupons zero principal instruments (ZCZP) as securities for the purposes of the Securities Contracts (Regulation) Act, 1956.
  • These instruments will be governed by rules made by the Securities and Exchange Board of India (SEBI)

About Zero-coupon bond:

  • It is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full-face value.
  • The difference between the purchase price of a zero-coupon bond and the par value indicates the investor’s return.

Source: THE HINDU

Previous Year Questions

Q.1) With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”? (2022)

  1. Government can reduce the coupon rates on its borrowing by way of IIBs.
  2. IIGs provide protection to investors from uncertainty regarding inflation.
  3. The interest received as well as capital gains on IIBs are not taxable.

Which of the statements given above is correct?

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

Q.2) Convertible Bonds, consider the following statements: (2022)

  1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
  2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.

Which of the statements given above is/are correct?

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

Self-incrimination

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Syllabus

  • Prelims –Polity

Context: In a recent episode the Supreme Court refused to hear a plea by Delhi Deputy Chief Minister seeking bail in the excise policy case.

About Self-incrimination:

  • It is a declaration or an act that occurs during an investigation where a person or witness incriminates themselves either explicitly or implicitly is known as self-incrimination.
  • This right is based on the Latin maxim that ‘No one is obligated to blame himself’.

 Provisions for self-incrimination in the Indian constitution :

  • Article 20- grants protection against arbitrary and excessive punishment to an accused person, whether a citizen or foreigner or a legal person like a company or a corporation. It contains three provisions in that direction:
  • It contains provisions related to No ex-post-facto law, No double jeopardy, and No self-incrimination.
  • No self-incrimination means no person accused of any offense shall be compelled to be a witness against himself.
  • The protection against self-incrimination extends to both oral evidence and documentary evidence.
  • Exceptions: It does not extend to the compulsory production of material objects, the compulsion to give a thumb impression, specimen signature, blood specimens, and compulsory exhibition of the body.
  • It extends only to criminal proceedings and not to civil proceedings or proceedings which are not of criminal nature.

Judicial rulings on self-incrimination :

The State of Bombay versus Kathi Kalu Oghad 1961:

  • The Supreme Court ruled that obtaining photographs, fingerprints, signatures, and thumb impressions would not violate the right against self-incrimination of an accused.

Selvi v State of Karnataka case, 2010

  • In this case the Supreme Court held that a narcoanalysis test without the consent of the accused would amount to a violation of the right against self-incrimination.

 Ritesh Sinha versus State of Uttar Pradesh 2019:

  • In this case, the Supreme Court broadened the parameters of handwriting samples to include voice samples, adding that this would not violate the right against self-incrimination.

MUST READ: Genetic Information and Right to Privacy

Source: THE INDIAN EXPRESS

Previous Year Questions

Q.1) With reference to the writs issued by the Courts in India, consider the following statements: (2022)

  1. Mandamus will not lie against a private organization unless it is entrusted with a public duty.
  2. Mandamus will not lie against a Company even though it may be a Government Company.
  3. Any public-minded person can be a petitioner to move the Court to obtain the writ of Quo Warranto.

Which of the statements given above is correct?

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

Q.2) With reference to India, consider the following statements: (2021)

  1. Judicial custody means an accused is in the custody of the concerned magistrate and such an accused is locked up in a police station, not in jail.
  2. During judicial custody, the police officer in charge of the case is not allowed to interrogate the suspect without the approval of the court.

Which of the statements given above is/are correct?

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

Role of a Whip

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Syllabus

  • Prelims –Polity

Context: A five-judge Bench led by Chief Justice of India (CJI) D Y Chandrachud is hearing petitions filed in the wake of last year’s political crisis in Maharashtra.

About the Role of a Whip:

  • A whip is an official of a political party whose task is to ensure party discipline in the legislature.
  • Whips are the party’s “enforcers”.
  • The whip ensures that the members of the political party vote according to the party, rather than according to their own individual ideology or the will of their donors or constituents.
  • Every political party, whether ruling or Opposition has its own whip in the Parliament.
  • He is appointed by the political party and serves as an assistant floor leader.
  • Under the Tenth Schedule (anti-defection law) a political party has a constitutional right to issue a whip to its legislators.

Kihoto Hollohan vs Zachillhu case, 1992

  • The Supreme court held that the application of the Tenth Schedule is limited to a vote on a “motion of confidence” or “no-confidence” in the government or where the motion under consideration relates to a matter which was an integral policy and programme of the political party.
  • Paragraph 2(1)(b) provides for a lawmaker’s disqualification “if he votes or abstains from voting in such House contrary to any direction

Historical background :

  • In India, the concept of the whip was inherited from colonial British rule.
  • The office of ‘whip’, is mentioned neither in the Constitution of India nor in the Rules of the House nor in a Parliamentary Statute.
  • It is based on the conventions of the parliamentary government.

Defiance of Whip

  • A legislator may face disqualification proceedings if they disobey the whip of the party unless the number of lawmakers defying the whip is 2/3rds of the party’s strength in the house.
  • This disqualification is decided by the Speaker/Chairman of the house.

MUST READ: Privilege Motion

Source: THE INDIAN EXPRESS

Previous Year Questions

Q.1) With reference to anti-defection law in India, consider the following statements: (2022)

  1. The law specifies that a nominated legislator cannot join any political party within six months of being appointed to the House.
  2. The law does not provide any time frame within which the presiding officer has to decide on a defection case.

Which of the statements given above is/are correct?

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

Q.2) Which of the following is/are the exclusive power(s) of Lok Sabha? (2022)

  1. To ratify the declaration of Emergency
  2. To pass a motion of no-confidence against the Council of Ministers
  3. To impeach the President of India

Select the correct answer using the code given below:

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

Vaibhav fellowship

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Syllabus

  • Prelims – Science and Technology

Context: Recently, the Centre unveiled the ‘VAIBHAV Fellowship’ for NRI researchers.

About the Vaibhav fellowship :

  • The fellowship offers NRI researchers an opportunity to work for a minimum of one month to a maximum of two months a year with a research institution or an academic institution in India.
  • The duration of the fellowship is three years with the government offering the researchers an amount of up to Rs 37 lakh for the entire period.
  • Objective: The VAIBHAV Fellowship aims at improving the research ecosystem of India’s Higher Educational and Scientific Institutions by facilitating academic and research collaborations between Indian Institutions and the best institutions in the world through the mobility of faculty/researchers from overseas institutions to India.

Eligibility: (for Scientists)

  • The applicant should be a Non-Resident Indian (NRI), Person of Indian Origin (PIO) and Overseas Citizen of India (OCI), currently living abroad.
  • The applicant must have obtained Ph.D./M.D/M.S degree from a recognized University.
  • Applicant must be a researcher engaged in an overseas academic / research / industrial organization with a proven track record of research & development working in the top 500 QS World University Ranking.
  • Plan to pursue research work for a minimum of 1 month to a maximum of 2 months a year in a research institution / academic institution in India, spread over 3 years.
  • Applicants can submit their proposals only once in a calendar year.

Eligibility: (for Institutions)

  • Higher Educational Institutions / Universities ranked in the top 200 in NIRF overall rankings and have NAAC ‘A” grades (3.0 and above) and scientific institutes.

Nature & Duration of Support:

  • The fellowship is tenable only in India.
  • It can be implemented in any of the recognized academic institutions, national laboratories and other recognized R&D institutions.
  • The host institution should provide the necessary administrative and infrastructural support
  • The fellowship is for 1-2 months each year for a period of 3 years.
  • The fellows will be entitled to receive the grants as given below:
  • Fellowship of USD 5000 (in equivalent Indian currency)
  • International Travel from a place of their institute to a place of work in India in business class
  • Accommodation in 3 or 4-star hotel
  • Contingency Rs 1,00,000 per year
  • Domestic Travel for academic purposes up to two stations in a year

Source: THE INDIAN EXPRESS 

Previous Year Questions

Q.1) Atal Innovation Mission is set up under the (2019)

  1. Department of Science and Technology
  2. Ministry of Labour and Employment
  3. NITI Aayog
  4. Ministry of Skill Development and Entrepreneurship

Q.2) What is the purpose of ‘Vidyanjali Yojana’? (2017)

  1. To enable famous foreign educational institutions to open their campuses in India.
  2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
  3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

Select the correct answer using the code given below:

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

Q3) Recognition of the Prior Learning Scheme’ is sometimes mentioned in the news with reference to (2017)

  1. Certifying the skills acquired by construction workers through traditional channels.
  2. Enrolling the persons in Universities for distance learning programmes.
  3. Reserving some skilled jobs to rural and urban poor in some public sector undertakings.
  4. Certifying the skills acquired by trainees under the National Skill Development Programme.

Ancient Monuments and Archaeological Sites and Remains (AMASR) (Amendment) Bill

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Syllabus

  •   Prelims – Art and Culture 

About Ancient Monuments and Archaeological Sites and Remains (AMASR) (Amendment) Bill :

  • It is an Act to provide for the preservation of ancient and historical monuments and archaeological sites and remains of national importance, for the regulation of archaeological excavations, and for the protection of sculptures, carvings, and other like objects.
  • It extends to the whole of India.
  • The AMASR Act, of 1958, was amended in 2010 to declare the 100-meter radius of protected monuments as prohibited areas and the next 300-meter radius as regulated areas.

About the Ancient Monuments and Archaeological Sites and Remains (Amendment) Bill, 2017  :

  • It was introduced to amend the Ancient Monuments and Archaeological Sites and Remains Act, of 1958.
    The Act defines a ‘prohibited area’ as an area of 100 meters around a protected monument or area.
  • The central government can extend the prohibited area beyond 100 meters.
  • The Act does not permit construction in such prohibited areas, except under certain conditions.
  • The Act also prohibits construction in ‘prohibited areas’ even if it is for public purposes.
  • The Bill was intended to amend this provision to permit the construction of public works in ‘prohibited areas’ for public purposes.
  • The Bill introduces a definition for ‘public works.
  • Procedure for seeking permission for public works: As per the Bill, the relevant central government department, that seeks to carry out construction for public purposes in a prohibited area, should make an application to the competent authority.
  • If there is any question related to whether a construction project qualifies as ‘public works’, it will be referred to the National Monuments Authority.  This Authority will make its recommendations, with written reasons, to the central government.
  • The decision of the central government will be final. 
  • If the decision of the central government differs from that of the Authority, it should record its reasons in writing.
  • This decision should be communicated by the competent authority, to the applicant, within 10 days of receiving it.

Impact assessment of proposed public works:

  • The Bill empowers the National Monuments Authority to consider an impact assessment of the proposed public works in a prohibited area, including its (i) archaeological impact; (ii) visual impact; and (iii) heritage impact.
  • The Authority will make a recommendation, for the construction of public works to the central government, only if it is satisfied that there is no reasonable possibility of moving the construction outside the prohibited area.
  • The bill was referred to the Select Committee in 2018.

MUST READ: Need for heritage conservation

Source: THE HINDU

Previous Year Questions

Q.1) With reference to the cultural history of India, consider the following statements (2018)

  1. White marble was used in making Buland Darwaza and Khankah at Fatehpur Sikri
  2. Red sandstone and marble were used in making Bara Imambara and Rumi Darwaza at Lucknow

Which of the statements given above is/are correct?

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

Q.2) What is/are common to the two historical places known as Ajanta and Mahabalipuram? (2016)

  1. Both were built in the same period.
  2. Both belong to the same religious denomination.
  3. Both have rock-cut monuments.

Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 3 only
  3. 1 and 3 only
  4. None of the statements given above is correct

Internet shutdown report and Operation Blue Star

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Syllabus

  • Prelims – Polity 

About the Internet shutdown report:

  • The report was published by Access Now, a New York-based advocacy group that tracks internet freedom.
  • It claims that India imposed the highest number of internet shutdowns globally in 2022.
  • As per the report, this is the fifth consecutive year that the world’s largest democracy of more than 1.3 billion people has topped the list.

Key Highlights of the report:

  • Nearly 60% of India’s internet shutdowns last year occurred in Indian-administered Kashmir, where authorities disrupted access due to “political instability and violence.
  • Apart from Jammu and Kashmir, authorities in the states of West Bengal and Rajasthan imposed more shutdowns than other Indian regions in response to “protests, communal violence, and exams.
  • The disruptions “impacted the daily lives of millions of people for hundreds of hours in 2022.”
  • Internationally, the right to access the Internet can be rooted in Article 19 of the Universal Declaration of Human Rights .

About Internet Shutdowns:

  • Internet shutdowns are absolute restrictions placed on the use of Internet services due to an order issued by a government body.
  • It may be limited to a specific place and to a specific period, time, or a number of days. 
  • Sometimes it can even extend indefinitely.

About operation blue star:

  • It is a code name given to an Indian Military Operation to remove the separatists who were hidden inside the Golden Temple at Amritsar in 1984.
  • The operation was ordered by then Prime Minister Indira Gandhi, primarily to take control of the Harmandir Sahib Complex in Amritsar (popularly known as the Golden Temple).
  • Bhindranwale was seen as a supporter of the creation of Khalistan.

This operation aimed to eliminate Jarnail Singh Bhindranwale from the Golden Temple complex and regain control over Harmandir Sahib.

  • The operation had two components to it, Operation Metal which was the invasion of the temple complex, and Operation Shop which was confined to the countryside of the state.

MUST READ:  Article 19 of Indian Constitution

Source: THE INDIAN EXPRESS

Previous Year Questions

Q.1) Consider the following pairs: (2020)

International agreement/ set-up Subject

  1. Alma-Ata Declaration – Healthcare of the people
  2. Hague Convention – Biological and Chemical Weapons
  3. Talanoa Dialogue – Global Climate Change
  4. Under2 Coalition – Child Rights

Which of the pairs given above is/are correctly matched?

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

Q.2) Which of the following adopted a law on data protection and privacy for its citizens known as ‘General Data Protection Regulation’ in April 2016 and started implementation of its from 25th May, 2018? (2019)

  1. Australia
  2. Canada
  3. The European Union
  4. The United States of America

Disqualification of Members of Parliament

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Syllabus

  • Mains – GS 2 (Polity and Governance)

Context: Recently, the debate has surrounded whether disqualification for conviction is final or whether it can be revoked.

About disqualification

Constitutional provisions:

  • The provision for disqualification is given in Article 102 of the Constitution.
  • It specifies that a person shall be disqualified for contesting elections and being a Member of Parliament under certain conditions.
  • If he holds any office of profit under the Union or state government (except that of a minister or any other office exempted by Parliament).
  • If he is of unsound mind and stands so declared by a court.
  • If he is an undischarged insolvent.
  • If he is not a citizen of India or has voluntarily acquired the citizenship of a foreign state or is under any acknowledgement of allegiance to a foreign state; and
  • If he is so disqualified under any law made by Parliament.
  • Article 102 also authorises Parliament to make laws determining conditions of disqualifications.
  • There are analogous provisions for members of state legislatures.

The Representation of the People Act, 1951:

  • Disqualification on Imprisonment:
    • The Representation of the People Act, 1951 provides that a person will be disqualified if convicted and sentenced to imprisonment for two years or more.
    • The person is disqualified for the period of imprisonment and a further six years.
  • Exception for sitting members:
    • There is an exception for sitting members; they have been provided a period of three months from the date of conviction to appeal;
    • the disqualification will not be applicable until the appeal is decided.

About Disqualification on Ground of Defection:

  • The Constitution also lays down that a person shall be disqualified from being a member of Parliament if he is so disqualified on the ground of defection under the provisions of the Tenth Schedule.

A member incurs disqualification under the defection law:

  • If he voluntarily gives up the membership of the political party on whose ticket he is elected to the House;
  • If he votes or abstains from voting in the House contrary to any direction given by his political party;
  • If any independently elected member joins any political party; and
  • If any nominated member joins any political party after the expiry of six months.

Decision of Presiding officer:

  • The question of disqualification under the tenth Schedule is decided by the Chairman in the case of Rajya Sabha and Speaker in the case of Lok Sabha (and not by the president of India).
  • In 1992, the Supreme Court ruled that the decision of the Chairman/Speaker in this regard is subject to judicial review.

Important Supreme Court Judgements:

  • 2002– Union of India (UOI) v. Association for Democratic Reforms: The SC held that every candidate, contesting an election to the Parliament, State Legislatures, or Municipal Corporation, has to declare their criminal records, financial records, and educational qualifications along with their nomination paper.
  • 2005- Ramesh Dalal vs. Union of India: The SC held that a sitting MP or MLA shall also be subject to disqualification from contesting elections if he is convicted and sentenced to not less than 2 years of imprisonment by a court of law.
  • 2013- In Lily Thomas v. Union of India: The SC held that Section 8(4) of The Representation of the People Act, 1951 is unconstitutional which allows MPs and MLAs who are convicted to continue in office till an appeal against such conviction is disposed of.
    • The court held that MP/MLA convicted for two years or above would be disqualified immediately.
  • 2015 – Krishnamurthy v. Sivakumar & Ors: The SC held that disclosure of criminal antecedents (especially heinous crimes) of a candidate at the time of filing of nomination paper as mandated by law was a categorically imperative.

Can the disqualification be removed?

  • Yes, the Supreme Court has the power to stay not only the sentence but also the conviction of a person.
    • In some rare cases, conviction has been stayed to enable the appellant to contest an election.
    • But the Supreme Court has made it clear that such a stay should be very rare and for special reasons.
  • The RPA itself provides a remedy through the Election Commission.
    • Under Sec. 11 of the Act, the EC may record reasons and either remove or reduce the period of, a person’s disqualification.
    • The EC exercised this power for Sikkim Chief Minister P.S. Tamang, who served a one-year sentence for corruption, and reduced his disqualification so as to contest a byelection and remain in office.

Is there legal protection for legislators against disqualification?

  • Under Section 8(4) of the RPA, legislators could avoid immediate disqualification until 2013.
  • Section 8(4) allowed convicted MPs, MLAs, and MLCs to continue in their posts, provided they appealed against their conviction/sentence in higher courts within 3 months of the date of judgment by the trial court.
  • In other words, the mere filing of an appeal against conviction will operate as a stay against disqualification.
  • But in Lily Thomas vs. Union of India, the Supreme Court in July 2013 struck down section 8(4) of the RPA, 1951 and declared it ultra vires, and held that the disqualification takes place from the date of conviction.

Way Forward:

The introduction of the tenth schedule in the Indian Constitution was aimed at curbing political defections. Though the law has succeeded in a reasonable way but due to some of its loopholes, it has not been able to achieve the best it can.

Source:  Indian Express

Previous Year Questions

Q.1) With reference to anti-defection law in India, consider the following statements:

  1. The law specifies that a nominated legislator cannot join any political party within six months of being appointed to the House.
  2. The law does not provide any time-frame within which the presiding officer has to decide a defection case.

Which of the statements given above is/are correct? (2022)

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

Q.2) Which one of the following Schedules of the Constitution of India contains provisions regarding anti-defection? (2014)

  1. Second Schedule
  2. Fifth Schedule
  3. Eighth Schedule
  4. Tenth Schedule

Foreign Contribution Regulation Act (FCRA)

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Syllabus

  •   Mains – GS 2 (Governance) and GS 3 (Economy)

Context: Ministry of Home Affairs (MHA) has suspended the FCRA registration of Think tank Centre for Policy Research (CPR).

About Foreign Contribution Regulation Act (FCRA):

  • The Foreign Contribution Regulation Act (FCRA) was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India’s affairs.
  • The law sought to regulate foreign donations to individuals and associations so that they functioned “in a manner consistent with the values of a sovereign democratic republic”.
  • The FCRA was amended in 2010 and 2020 by the government to give tighter control and scrutiny over the receipt and utilization of foreign funds by NGOs.

FCRA Registration:

  • NGOs that want to receive foreign funds must apply online in a prescribed format with the required documentation.
  • FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programs.
  • Following the application by the NGO, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant, and accordingly processes the application.

Important highlights of the FCRA:

FCRA Requirements:

  • Broadly, the FCRA requires every person or NGO seeking to receive foreign donations to be:
    • registered under the Act,
    • to open a bank account for the receipt of the foreign funds in State Bank of India, Delhi, and
    • to utilize those funds only for the purpose for which they have been received and as stipulated in the Act.
    • They are also required to file annual returns, and they must not transfer the funds to another NGO.
  • Changes in FCRA Rules:
    • The Ministry of Home Affairs (MHA) in 2022 changed FCRA rules and increased the number of compoundable offences under the Act from 7 to 12.
    • The amendment also gave exemption from intimation to the government for contributions less than Rs 10 lakh – the earlier limit was Rs 1 lakh — received from relatives abroad, and increase in time limit for intimation of opening of bank accounts.
  • Validity of FCRA Approval:
    • Once granted, FCRA registration is valid for five years.
    • NGOs are expected to apply for renewal within six months of the date of expiry of registration.
    • In case of failure to apply for renewal, the registration is deemed to have expired.
    • Once expired, the NGO is no longer entitled to receive foreign funds or utilize its existing funds without permission from the ministry.

Significance of regulating foreign contributions in India:

  • Preventing interference in Indian affairs: The FCRA was enacted to prevent foreign powers from interfering in India’s affairs by regulating foreign donations to individuals and associations.
  • Transparency and accountability: The FCRA ensures transparency and accountability which is important to prevent misuse of funds.
  • National security: The FCRA also helps in safeguarding national security interests by preventing foreign entities from funding activities that could be detrimental to India’s security.
  • Promoting social and economic development: Foreign contributions can be an important source of funding for social and economic development in India.

Challenges of regulating foreign contributions:

  • Administrative Delays: The registration and renewal process under the FCRA can take a long time which delays their work and impact their ability to receive funding.
  • Stringent Compliance Requirements: The FCRA registration process can be time-consuming and requires extensive documentation, while the rules on the utilization of funds are also strict.
  • Political Interference: The government’s discretionary powers to cancel registrations or freeze accounts of NGOs have been misused in some cases to target NGOs critical of the government, leading to accusations of political interference
  • Ambiguity in the Law: There is often ambiguity in the interpretation of the FCRA, leading to NGOs being exploited by authorities to target NGOs and curtail their activities.
  • Lack of Clarity: There is a lack of clarity on the compliance requirements for foreign corporations and foundations operating in India leading to concerns about the transparency of their funding activities and potential influence on Indian civil society.

Way Forward:

Thus, It is an important law in India that seeks to regulate the receipt and utilization of foreign funds by individuals and NGOs in a manner consistent with the values of a modern democratic republic. While the FCRA has undergone amendments, the challenges in its implementation remain, such as the difficulty in balancing the need for transparency and accountability with the need to protect the autonomy of civil society organizations.

Source: Indian Express


Practice MCQs

Daily Practice MCQs

Q.1) Consider the following statements regarding VAIBHAV Fellowship’ for NRI researchers:

  1. The fellowship offers NRI researchers an opportunity to work for a minimum of one month to a maximum of two months a year.
  2. The fellowship is tenable only in India.
  3. The applicant must have obtained Ph.D./M.D/M.S degree from a recognized University.

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

Q.2) Consider the following statements regarding Social Stock Exchange(SSE):

  1. It is a platform that allows investors to invest in select social enterprises or social initiative The SSE would function as a separate segment within the existing stock exchange s.
  2. Reserve Bank of India regulates SSE in India.

Which of the statements given above is/are correct?

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

Q.3) Protection in respect of conviction for offenses is guaranteed under which of the following articles?

  1. Article 19
  2. Article 20
  3. Article 21
  4. Article 22

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’ 3rd March 2023 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs.st


ANSWERS FOR 2nd March – Daily Practice MCQs

Answers- Daily Practice MCQs

Q.1) – b

Q.2) – c

Q.3) – a

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