The Supreme Court upheld a government move to allow lenders to initiate insolvency proceedings against personal guarantors, along with the stressed corporate entities for whom they gave guarantee.
These personal guarantors are usually the promoters of big business houses.
Key takeaways
It held that the November 15, 2019, government notification which allowed creditors (usually financial institutions and banks), to move against personal guarantors under the Indian Bankruptcy and Insolvency Code (IBC) was “legal and valid”.
The government had also decided that corporate debtors and their personal guarantors should be dealt with by a common forum — National Company Law Tribunal (NCLT) — through the same adjudicatory process.
Besides, Section 60(2) of the IBC had required the bankruptcy proceedings of corporate debtors and their personal guarantors to be held before the NCLT.
As per the new rules notified under the Insurance Act, Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members.
Part of: GS Prelims and GS – II – Health; Judiciary
In news
The Delhi High Court held the government’s imposition of GST on oxygen concentrators imported for personal use as “unconstitutional”.
Key takeaways
It said that oxygen concentrators constitute a life-saving device during the COVID-19 pandemic and during a pandemic a different approach needs to be adopted.
Government’s May 1 notification levied 12% GST on such imports from 28% earlier.
The court had asked the government to consider temporarily dropping the 12% GST levied on such imports altogether, citing the shortage of oxygen in the second wave of the pandemic.
Do you know?
Article 21 of the Constitution enshrines the fundamental right to life.
An oxygen concentrator is a device that concentrates the oxygen from a gas supply (typically ambient air) by selectively removing nitrogen to supply an oxygen-enriched product gas stream.
Part of: GS Prelims and GS -III – Technology; Animal rearing
In news
May 20 is observed as World Bee Day annually.
2021 theme: “Bee Engaged – Build Back Better for Bees”.
Key takeaways
Efforts by the Indian government
Government is promoting Beekeeping as part of its aim to double farmers’ income.
The Government has allocated 500 crores towards Beekeeping under the Atma Nirbhar Abhiyan.
The National Bee Board has created four modules to impart training as part of the National Beekeeping and Honey Mission (NBHM)
30 lakh farmers have been trained in beekeeping.
They are also being financially supported by the Government.
The Government has launched ‘Honey Mission’ as part of ‘Sweet Revolution’.
Do you know?
India is among the world’s top five honey producers.
Compared to 2005-06 honey production has risen by 242% and exports have increased by 265%.
As per Food and Agricultural Organization database, in 2017-18, India ranked 8th in the world in terms of honey production (64.9 thousand tonnes) while China stood first (551 thousand tonnes).
Context: Despite its efforts, bureaucracy has emerged as a major concern for the ineffective response to the COVID-19 crisis.
Present Model
Weberian bureaucracy prefers a generalist over a specialist. Specialists in every government department have to remain subordinate to the generalist officers
The justification is that the generalist provides a broader perspective compared to the specialist.
A generalist officer (IAS and State civil service officials) is deemed an expert and as a result, superior, even if the officer works in one department or ministry today and in another tomorrow.
Pandemic Situation: Healthcare professionals who are specialists have been made to work under generalist officers and the policy options have been left to the generalists when they should be in the hands of the specialists.
Issues
Weberian bureaucracy prefers leadership based on position.
Traditional bureaucracy is still stuck with the leadership of position over leadership of function
Bureaucracy has become an end in itself rather than a means to an end.
The rigid adherence to rules has resulted in the rejection of innovation
Administrative reform movement promotes privatisation and managerial techniques of the private sector as an effective tool to seek improvements in public service delivery and governance. But this isn’t a viable solution, not the least in India where there is social inequality and regional variations in development.
Way Forward – Collaborative Governance
Collaborative governance is a model in which the public sector, private players and civil society, especially NGOs, work together for effective public service delivery.
There is no domination of public bureaucracy as the sole agency in policy formulation and implementation.
As part of new public governance, a network of social actors and private players would take responsibility in various aspects of governance with public bureaucracy steering the ship rather than rowing it.
During the pandemic, we see civil society playing a major role in saving lives. As part of new public governance, this role has to be institutionalised.
Connecting the dots:
Minimum Government, Maximum Governance
ECONOMY/ GOVERNANCE
Topic:
GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
