OPEN MARKET OPERATIONS (OMO)
1. Context
In its October meeting, the monetary policy committee voted unanimously to keep interest rates unchanged. This was widely expected. But what was not was the RBI Governor stating that the central bank would consider open market operations to manage liquidity.
2. Open market operations by RBI
- Open market operations (OMOs) are a monetary policy tool used by central banks to influence the money supply and interest rates.
- It involves buying and selling government securities in the open market. When the central bank buys government securities, it injects money into the economy. When it sells government securities, it withdraws money from the economy.
- Open market operations (OMOs) are the buying and selling of government securities in the open market by the Reserve Bank of India (RBI) to influence the money supply and interest rates.
- When the RBI buys government securities, it injects money into the economy. This is because the RBI pays for the securities using cash.
- This increase in the money supply can lead to lower interest rates and higher economic growth.
- When the RBI sells government securities, it withdraws money from the economy. This is because the RBI receives cash in exchange for the securities.
- This decrease in the money supply can lead to higher interest rates and lower economic growth.
2.1. Examples of OMOs by RBI
The RBI uses OMOs to achieve its monetary policy objectives, which are to maintain price stability and promote sustainable economic growth. For example, the RBI may conduct OMOs to:
- inject liquidity into the economy to support economic growth during a recession.
- Withdraw liquidity from the economy to control inflation.
- Manage the exchange rate of the rupee.
The RBI has used OMOs to inject liquidity into the economy to support economic growth. For example, in March 2020, the RBI conducted a series of OMOs to inject ₹30,000 crores into the economy in response to the COVID-19 pandemic.
The RBI has also used OMOs to withdraw liquidity from the economy to control inflation. For example, in October 2022, the RBI announced that it would conduct OMO sales of government bonds to withdraw ₹50,000 crores from the economy.
2.2. Advantages and Disadvantages of OMOs by RBI
- OMOs are a flexible tool that the RBI can use to quickly and precisely adjust the money supply and interest rates.
- They are also a relatively transparent tool, as the RBI typically announces its OMO plans in advance.
- OMOs can be complex and difficult to understand. They can also be less effective in influencing the economy during times of financial market stress.
- OMOs are a powerful tool that the RBI can use to manage the money supply and interest rates. They are an important part of the RBI's monetary policy toolkit.
3. Monetary Policy Committee
The Monetary Policy Committee (MPC) is a committee or group responsible for setting the monetary policy of a country, including key interest rates. It is an important institution in many central banks worldwide, including the Reserve Bank of India (RBI).
Key features and functions of a Monetary Policy Committee:
- The MPC typically consists of a group of experts, including both members from the central bank and external members. In the case of the RBI, the MPC is composed of six members: three from the RBI, including the RBI Governor, and three external members appointed by the Government of India.
- The primary function of the MPC is to make decisions regarding the central bank's monetary policy, including setting key policy interest rates. This group assesses various economic indicators, financial market conditions, and other factors to make informed decisions.
- Many MPCs, including the RBI's MPC, operate under a framework of inflation targeting. This means that their primary objective is to achieve and maintain a specific inflation rate within a target range. The committee uses interest rate adjustments to control inflation.
- MPCs aim to operate transparently and communicate their decisions to the public. They often release statements explaining the rationale behind their decisions and their economic outlook.
- The independence of the MPC from political interference is crucial. It allows the committee to make decisions solely based on economic and financial considerations, free from political pressures.
- MPCs typically meet at regular intervals, such as every quarter or month, to review the economy, assess the impact of previous policy decisions, and make adjustments if necessary.
- MPCs engage in economic forecasting to anticipate future economic conditions, including inflation trends. These forecasts guide their monetary policy decisions.
- One of the primary tools at the disposal of an MPC is setting key policy interest rates. For example, the RBI's MPC sets the repo rate (the rate at which banks can borrow money from the central bank) and the reverse repo rate (the rate at which banks can lend money to the central bank).
- Decisions made by the MPC can have a significant impact on financial markets. Changes in policy rates can affect interest rates, exchange rates, and asset prices.
|
For Prelims: RBI, Monetary Policy Committee, COVID-19 pandemic, Open market operations, interest rates, inflation,
For Mains:
1. Explain the concept of Open Market Operations (OMO) as a monetary policy tool. How do OMOs impact the money supply and interest rates in an economy? Provide examples of OMOs conducted by the Reserve Bank of India (RBI) to achieve its monetary policy objectives. (250 Words)
2. Explore the concept of inflation targeting and how it influences the primary objective of the Monetary Policy Committee. Discuss the significance of interest rate adjustments in controlling inflation. (250 Words)
|
|
Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4 Answer: C 3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall. (b) Central bank is no longer making loans to commercial banks. (c) Central bank is following an easy money policy. (d) Central bank is following a tight money policy. Answer: D 4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only Answer: A 5. With reference to the Indian economy, consider the following statements: (UPSC 2022)
1. An increase in the Nominal Effective Exchange Rate (NEER) indicates the appreciation of the rupee.
2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
Which of the above statements are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: C
6. In the context of vaccines manufactured to prevent COVID-19 pandemic, consider the following statements: (UPSC 2022)
1. The Serum Institute of India produced COVID-19 vaccine named Covishield using mRNA platform.
2. Sputnik V vaccine is manufactured using vector based platform.
3. COVAXIN is an inactivated pathogen based vaccine.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
7. In the context of Indian economy, 'Open Market Operations' refers to (UPSC 2013)
A. borrowing by scheduled banks from the RBI
B. lending by commercial banks to industry and trade
C. purchase and sale of government securities by the RBI
D. None of the above
Answer: C
8. If the interest rate is decreased in an economy, it will (UPSC 2014)
A. decrease the consumption expenditure in the economy
B. increase the tax collection of the Government
C. increase the investment expenditure in the economy
D. increase the total savings in the economy
Answer: C
9. With reference to the Indian economy, consider the following statements: (UPSC 2022)
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
10. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: D
11. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
12. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
Answer: C
|
Source: Indianexpress
AGE OF THE MOON
1. Context
More than 50 years after astronauts returned with the last batch of Apollo-era moon rock, scientists have said they made a finding that would have been impossible in 1972.
2. How old is the moon?
- The recent study suggests that the moon's age is approximately 40 million years older than previously estimated.
- According to the updated findings, the moon is now believed to have originated around 4.46 billion years ago, or "4.46 GA," placing its formation within the initial 110 million years of our solar system's existence.
- Numerous lunar specimens have undergone examination throughout the years, although a considerable portion has been conserved and released to researchers at a gradual pace.
- This cautious approach was rooted in the early anticipation that advancing technology would eventually offer improved insights.
- The results, which were published on October 23, 2023, in Geochemical Perspectives Letters, are based on a novel technology known as atom probe tomography (APT)
3. Discovery of the moon's age
- The researchers conducted a fresh analysis of crystals taken from lunar sample 72255, which was previously identified to contain zircon crystals dating back 4.2 billion years, making them among the most ancient ever discovered.
- Zircon is recognized as the Earth's oldest known mineral and is of great importance to geologists as it offers crucial insights into the formation of our planet and the development of life as we understand it.
- In their recent study, the scientists employed Atom Probe Tomography (APT), a technology with incredibly fine spatial resolution, to assess the arrangement of lead within the samples.
- The distribution of lead is a commonly utilized factor in estimating the age of zircon crystals within rock formations.
3.1. Conventional method to find moon's age
- Discovering the moon's new age or refining its estimated age involves advanced scientific research and the analysis of lunar samples. Here's how this process typically works:
- Lunar samples, such as rocks and minerals, are collected from the moon's surface during missions like the Apollo program. These samples are brought back to Earth for analysis
- Scientists study these lunar samples in laboratories, often using a range of sophisticated instruments and techniques. Some of these techniques include radiometric dating and isotope analysis
- Radiometric dating methods, like uranium-lead dating or rubidium-strontium dating, are commonly used. These methods rely on the radioactive decay of certain isotopes within the lunar samples. By measuring the ratio of parent isotopes to daughter isotopes, scientists can estimate the age of the sample
- In addition to dating, scientists may perform isotope analysis on the samples. This involves examining the ratios of different isotopes of elements within the lunar material. Isotope ratios can provide information about the moon's history and its relationship with other celestial bodies
- New and advanced technologies, such as atom probe tomography (APT) or mass spectrometry, may be used to analyze lunar samples with higher precision. These technologies can provide more accurate data and help refine age estimates.
- Scientists compare the results obtained from lunar samples with other data, such as Earth's geological history and the age of the solar system, to better understand the moon's formation and evolution.
- The findings are typically published in scientific journals and subjected to peer review by the scientific community. This ensures that the research methods and conclusions are rigorously evaluated
- The age of the moon is then refined based on the new data and research findings. Any new information or breakthroughs in dating techniques can lead to adjustments in the moon's estimated age
4. Way forward
There were subsequent bombardments of the moon’s surface, which the researchers write “reworked and melted the earliest crust,” leaving some zircon modified and other zircon pristine, or preserved.
It was by spotting the preserved zircon within crystal grains from lunar sample 72255 that they were able to redetermine the moon’s age
The Earth is estimated to be between 4.5 and 4.6 billion years old. That makes the moon only a fraction younger, at 4.46 billion years old
Source: indianexpress
RAPID ICE MELTING
1. Context
The rapid melting of West Antarctica’s ice sheet due to warm waters around it is now unavoidable, no matter how much carbon emissions are cut, according to a new study.
2. What is an ice Sheet?
- An ice sheet can be described as a vast expanse of glacial ice that extends over an area exceeding 50,000 square kilometers, which is approximately equivalent to covering the state of Uttarakhand with ice.
- Currently, the world hosts two significant ice sheets: the Greenland ice sheet and the Antarctica ice sheet. These two ice sheets collectively hold roughly two-thirds of the Earth's freshwater resources.
- As indicated in a NASA report, the implication of this is that as ice sheets accumulate mass over time, they play a role in reducing the global average sea level. Conversely, when ice sheets lose mass, they contribute to an increase in the global average sea level
3. How is the West Antarctica ice melting?
- There are several mechanisms involved in the melting of ice sheets, and one of these processes occurs when warm ocean waters cause the ice shelves at the edges of the ice sheet, which float on the ocean, to melt.
- These ice shelves play a crucial role in stabilizing the glaciers located on the land behind them. When an ice shelf thins or vanishes, the glaciers tend to accelerate, releasing more ice into the ocean and leading to a rise in sea levels.
- It's important to note that both ice shelves and ice sheets are distinct from sea ice, which consists of freely floating ice found in the polar regions and forms through the freezing of seawater.
- This same phenomenon is occurring in West Antarctica, specifically in the Amundsen Sea, which is the primary focus of Naughten's research.
- Over the decades, the ice shelves in this region have been diminishing, glaciers have been moving more rapidly toward the ocean, and the ice sheet has been diminishing.
4. Findings of the Study
- To perform this analysis, scientists have employed a high-resolution computer model specifically designed for the Amundsen Sea, allowing for the most comprehensive evaluation of West Antarctica's warming to date.
- This model has been utilized to conduct numerous simulations spanning the 21st century, encompassing a cumulative period of more than 4,000 years of ocean warming and ice-shelf melting in the Amundsen Sea.
- These simulations have considered various scenarios related to fossil fuel consumption, ranging from an optimistic best-case scenario aligned with the goals of the Paris Agreement, limiting global warming to 1.5°C, to a worst-case scenario involving uncontrolled utilization of coal, oil, and gas. Additionally, they have factored in the influence of natural climate variations, such as the timing of events like El Niño.
- In all these scenarios, a notable and widespread increase in future warming of the Amundsen Sea and heightened ice shelf melting is evident. Furthermore, there is little distinction among the scenarios until the year 2045.
- Notably, when examining the 1.5°C scenario, statistically, it parallels a mid-range scenario, which closely resembles the expected outcomes of current commitments to reduce fossil fuel usage over the forthcoming decades.
- These developments are anticipated to lead to a rise in sea levels, with global implications for coastal communities, including those in India.
- India, owing to its extensive coastline and high population density, is particularly susceptible to sea level rise. If these coastal communities cannot afford protective measures like constructing sea wa
5. Way forward
Although the findings are bleak, they shouldn’t discourage the efforts to mitigate the impacts of climate change, the study highlights. According to the researchers, the melting West Antarctic ice sheet is just one contributor to sea level rise, which is just one impact of climate change.
|
Previous Year Questions
1.La Nina is suspected to have caused recent floods in Australia. How is La Nina different from El Nino? (UPSC CSE 2011)
1. La Nina is characterized by unusually cold ocean temperature in the equatorial Indian Ocean whereas El Nino is characterized by unusually warm ocean temperature in the equatorial Pacific Ocean.
2. El Nino has an adverse effect on the south-west monsoon of India, but La Nina has no effect on the monsoon climate.
Which of the statements given above is/are correct?
A. 1 Only
B. 2 Only
C. Both 1 and 2
D. Neither 1 nor 2
Answer (D)
|
Source: indianexpress
PRISONERS DILEMMA
1. Context
Giving his keynote address at the Goa Maritime Conclave, Defence Minister Rajnath Singh referred to the concept of “Prisoner’s Dilemma” to underscore the need for countries to collaborate with each other instead of working at cross purposes.
2. What is the Prisoners dilemma?
- The Prisoner's Dilemma represents one of the most well-known scenarios within the field of Game Theory, a scientific discipline dedicated to understanding how individuals and entities make decisions in various situations.
- By employing game simulations, Game Theory not only aids in elucidating the concept but also provides insights into achieving optimal results.
- In a straightforward sense, one might assume that a person or a nation should always opt for actions that promise the best personal gain.
- However, reality is intricately layered with complexity and uncertainty. Furthermore, the final outcome is contingent upon the actions taken by other individuals or nations.
- It is worth noting that the ultimate result can change drastically if the other party or parties adopt a conflicting approach.
- For instance, as mentioned by the Defense Minister, a nation aiming to secure its borders by amassing a larger arsenal of weapons might inadvertently initiate an arms race with another country, contrary to their initial goal. The Prisoner's Dilemma serves as a game that aptly illustrates this paradox.
- Consider a situation where two individuals, denoted as A and B, find themselves under investigation for a crime.
- The available evidence is largely circumstantial, and the most that law enforcement can hope to achieve is a one-year prison sentence for both A and B, unless, of course, they manage to obtain more substantial evidence. One approach to secure this evidence is by encouraging the prisoners to implicate each other.
- Consequently, the police officer places A and B in separate rooms and presents them with a straightforward choice: If one of the prisoners accuses the other of involvement in the crime, the accuser can escape punishment while the accused receives a 15-year prison sentence. In the event that neither prisoner confesses, both will serve only a one-year prison term.
- In essence, the Prisoner's Dilemma revolves around the decision of whether to confess or remain silent.
3. What should Prisoners do?
- At first glance, opting to remain silent may seem like the most sensible course of action. If both individuals choose to remain silent, they will secure the most favourable outcome, which is serving just one year in prison.
- However, can either of them be certain that, while they remain silent, the other won't betray them to the authorities?
- The reality is that if either of the prisoners opts for silence, they expose themselves to the possibility of facing the harshest prison sentence, which is 15 years.
- On the other hand, if both prisoners decide to confess, they implicate each other and receive 10 years of imprisonment each.
- The paradox here is that when one cannot predict the other prisoner's behaviour with certainty, confessing becomes the rational choice.
- The optimal outcome, of course, resides in cooperation. If both prisoners cooperate by confessing, they can attain the most favourable result, serving just one year in prison.
- This dilemma, along with its solutions, holds relevance in various real-life contexts, encompassing international law and business.
4. Way forward
For instance, should two companies selling the same product — say ice creams — keep undercutting each other by reducing the price in order to corner the market share? Could repeated use of this strategy lead them to reduce prices to such a level that it becomes economically unviable to stay in business
Source: indianexpress
XEROGRAPHY
1. Background
Walter Benjamin's 1935 essay, "The Work of Art in the Age of Mechanical Reproduction," set the stage for a discussion on the impact of mass reproduction on art and text. While Benjamin's focus was on the world of art, it's intriguing to draw parallels with the advent of photocopying and its effect on the production and availability of textual material.
2. How Xerography Works?
- Photocopying is a method of duplicating content, primarily referring to xerography, which is known for its dry, efficient process. Xerographic machines are widely used for quick and cost-effective reproduction of printed material.
- Xerography relies on several key components. It begins with a photoconductive surface, which becomes conductive when exposed to light.
- This surface is negatively charged, and the paper to be copied is illuminated.
- The dark areas on the paper block the light, leaving the photoconductive surface charged in corresponding areas.
- Toner, a positively charged powdery substance, is then applied to the charged surface, adhering to the negatively charged areas.
- The image is transferred to a sheet of paper with a stronger negative charge, and the toner is melted and fused to the paper, creating the final copy.
- In practice, a rotating drum is often used, and the paper is illuminated with a flashing or stroboscopic light or a moving scanner, making the process even more efficient.
3. Innovations in Xerography
- Since its inception in the 1930s, xerography has seen numerous innovations, including improvements in toner supply, cost reduction, the development of colour copying, laser-based technologies, and enhancements in user experience.
- Inspired by Hungarian engineer Paul Selenyi, American attorney Chester F. Carlson developed an early version of xerography by 1938.
- He subsequently sold his idea to the Battelle Memorial Institute in Ohio, where researchers refined the technique.
- In 1946, the Haloid Photographic Company in New York purchased a license from Battelle, trademarking the "Xerox machine" in 1948 and making the first model available in 1949.
- This led to the founding of the Xerox Corporation, with pivotal models like the Xerox 914 in 1959 and the Xerox 813 in 1963.
Image Source: eBay4. Impact on Society
- Xerography's impact extends to various aspects of life. In 2002, Xerox machines refused to copy banknotes with a specific marking, preventing counterfeiting attempts. Such anti-photocopying features have been found on banknotes from numerous national banks.
- In 2012, academic publishers, including Oxford University Press, filed a copyright infringement suit against a photocopy shop and the University of Delhi. This case highlighted the benefits of making affordable copies of educational materials. Xerography enabled independent copying and distribution of texts, sometimes bypassing censorship.
- Walter Benjamin argued that mechanical reproduction had shifted art's value from ritual to politics. However, xerography's consequences are multifaceted. In 1970s New York, a vibrant arts scene emerged, empowered by xerography. Musicians, artists, and writers utilized low-cost printing to self-publish, promote events, and disseminate their work, transcending traditional gallery and museum spaces.
5. Conclusion
Xerography, born out of the ingenuity of Chester F. Carlson, has left an indelible mark on the world, revolutionizing the reproduction of text and art and empowering various fields, from finance to education and culture.
|
For Prelims: Chester F. Carlson, Xerography, censorship, University of Delhi, Oxford University Press, Xerox machines, Xerox 914, Xerox 813, Paul Selenyi,
For Mains:
1. Critically examine the ethical implications of xerography, with a focus on the potential for copyright infringement and misuse of personal information. (250 Words)
2. Assess the impact of xerography on Indian society, with a focus on its role in promoting literacy and social change. (250 Words)
|
|
Previous Year Questions
1. In the original analog xerographic process what material was used as the drum coating? (VIZAG MT Mechanical 2013)
A. Tungsten B. Carbon C. Selenium D. Copper
Answer: C
2. Measures in India to impose censorship on printed material were intiated in 1798 by the East India Company. It was directed against (IB ACIO Grade II 2015)
A. Bengali social reformers B. Englishmen in India
C. Bengali writers D. Indian Princely States
Answer: B
3. A picture made on a page from the Xerox machine was reduced to 75% from the original size. This copy was then reduced by 20%. What percentage of the original image was the size in the final copy? (MPPSC 2017)
A. 60 B. 45 C. 12 D. 58
Answer: A
|
Source: The Hindu
PREVENTIVE DETENTION
1. Context
As Telangana gears up for Assembly polls next month, its stringent preventive detention law is under the spotlight. In at least three separate instances, the Supreme Court has red-flagged the Telangana government’s use of the law
2. What is Prevention detention?
- Preventive detention means detention of a person by the state without trial and conviction by court, but merely on suspicion. The detention could be up to a year unless extended
- A pre-trial detention is not the same as preventive detention. While the former is an undertrial accused of a crime, a detainee can be taken into custody just as a preventive measure even if he has not committed a crime
- In countries such as Britain, United States and Canada, preventive detention is a wartime measure. In India, the Constitution itself makes space for preventive detention.
- Part III of the Constitution, which deals with fundamental rights, also gives the state the power to suspend these rights for preventive detention
- Despite its emphasis on individual liberty, Part III, which forms the basic structure of the Constitution that cannot be amended, also contains provisions for preventive detention under Article 22
3. State's Order of Preventive Detention
- Among central legislations, the National Security Act, the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) are examples of laws under which preventive detention can be ordered
- As many as 25 states also have preventive detention legislations, like the Telangana law, which is called The Telangana Prevention of Dangerous Activities of BootLeggers, Dacoits, Drug-Offenders, Goondas, Immoral Traffic Offenders, Land-Grabbers, Spurious Seed Offenders, Insecticide Offenders, Fertiliser Offenders, Food Adulteration Offenders, Fake Document Offenders, Scheduled Commodities Offenders, Forest Offenders, Gaming Offenders, Sexual Offenders, Explosive Substances Offenders, Arms Offenders, Cyber Crime Offenders and White Collar or Financial Offenders Act, (PD Act), 1986.
- These are expansive laws specifically addressed to local law and order issues. Other examples are the Tamil Nadu Prevention of Dangerous Activities of Bootleggers, Drug Offenders, Forest Offenders, Goondas, Immoral Trafficking Offenders and Slum Grabbers Act, 1982; the Gujarat Prevention of Antisocial Activities Act, 1985; the Bihar Control of Crimes Act, 1981, etc
4. Powers of the State
- Article 22 prescribes protection against arrest and detention but has a major exception. It says in Article 22 (3) (b) that none of those safeguards apply “to any person who is arrested or detained under any law providing for preventive detention.”
- The remaining clauses Article 22(4)-(7) deal with how preventive detention operationalises
- First, the state, which would be the district magistrate, would issue an order to detain a person when it is necessary to maintain “public order.” The state can delegate this power to the police as well.
- If the detention ordered is for more than three months, under Article 22(4), such Article 22(5) of the Constitution mandates that the state is required “as soon as maybe,” to communicate to the detainee the grounds of detention and “shall afford him the earliest opportunity of making a representation against the order.”detention requires the approval of an Advisory Board
- These Boards are set up by states and normally consist of retired judges and bureaucrats. A detainee is generally not allowed legal representation before the Board.
- If the Board confirms the detention, the detainee can move to Court challenging the detention order
- A basic set of facts that are the grounds for detention are required to be communicated in one instalment, and the state cannot then add fresh, new or additional grounds to strengthen its original detention order. The grounds have to be read in a language that the detainee understands.
- However, even this safeguard is diluted to a certain extent by Article 22(6), which says that nothing in clause 5 shall require the state to “disclose facts that the state considers to be “ against the public interest to disclose.”
5. Judicial review on Preventive detention
- For preventive detention, there are very narrow grounds of judicial review because the Constitution emphasises the state’s “subjective satisfaction” when ordering a detention.
- The touchstone on which the order is examined is this subjective opinion of the state rather than the fundamental rights enshrined in the Constitution.
- When the Court cannot substitute the subjective satisfaction of the state with its own satisfaction, it essentially means that it cannot check the veracity of the facts mentioned in the grounds of detention.
- A judicial review is limited to whether the Advisory Board applied its mind, considered all material facts and whether the state showed obvious malafide in ordering detention.
- Because judicial review is limited, courts often strike down detention orders on technical grounds, such as delay in the decision of the advisory board, communication of grounds in a timely fashion and in a language that the detainee understands, etc
6. Way forward
Preventive detention s it involves balancing the need to protect society and the legal process with the rights and freedoms of individuals. The use and regulation of preventive detention can vary widely from one jurisdiction to another, and it is a subject of ongoing debate and legal reform in many places
Source: indianexpress
