LANDSLIDES
1. Context
At least 122 persons were killed and 197 injured after multiple landslides flattened some three villages in Vythiri taluk of the hilly Wayanad district of Kerala early on 30/07/2024.
2. Landslides in India
- The recent cases of land subsidence in Joshimath, Uttarakhand, captured the spotlight.
- On June 29, 2022, at least 79 people were killed in a landslide in the Noney district of Manipur.
- The risk analysis in the report was based on the density of human and livestock populations, which indicates the impacts on people due to these landslides.
- The disaster in Kedaranath in 2013 and the landslides caused by the devastating Sikkim earthquake in 2011 are also included in this atlas.
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Between 1988 and 2022, the maximum number of landslides 12, 385 recorded in Mizoram.
Uttarakhand followed it at 11, 219, Tripura at 8, 070, Arunachal Pradesh at 7, 689, and Jammu and Kashmir at 7,280. Kerala saw 6,039, Manipur 5,494 and Maharashtra recorded 5, 112 incidents of landslides.
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- Globally, landslides rank third in terms of deaths among natural disasters.
- However, deforestation due to unplanned urbanisation and human greed increases the risk of such incidents.
- In 2006, about 4 million people were affected by landslides, including a large number of Indians.
- India is among the four major countries where the risk of landslides is the highest; it added. If we look at the figures, about 0.42 million square kilometres in the country are prone to landslides, which is 12.6 per cent of the total land area of the country.
- However, the figure does not include snow-covered areas. Around 0.18 million sq km of landslide-prone areas in the country are in North East Himalayas, including Darjeeling and Sikkim Himalayas.
- Of the rest, 0.14 million sq km falls in North West Himalaya (Uttarakhand, Himachal Pradesh and Jammu and Kashmir); 90, 000 sq km in the Western Ghats and Konkan hills (Tamil Nadu, Kerala, Karnataka, Goa and Maharashtra) and 10, 000 sq km in Eastern Ghats of Aruku in Andhra Pradesh.
3. Reasons for landslides
- Sudden heavy rains due to climate change are also increasing landslides. Around 73 per cent of landslides in the Himalayan region are attributed to heavy rains and reduced water-absorbing capacity of the soil.
- Global climate change is causing heavy rainfall that erodes steep slopes with loose soil found in a 2020 study by the Indian Institute of Technology in Delhi.
- Therefore, the increasing number of landslides can no longer be termed as just natural disasters, as human actions have also played a major role in it.
4. Data On Landslides
- Uttakarkhand, Kerala, Jammu and Kashmir, Mizoram, Tripura, Nagaland and Arunachal Pradesh reported the highest number of landslides during 1998 – 2022
- Mizoram topped the list, recording 12,385 landslide events in the past 25 years, of which 8,926 were recorded in 2017 alone
- Likewise, 2,071 events of the total 2,132 landslides reported in Nagaland during this period occurred during the 2017 monsoon season
- Manipur, too, showed a similar trend, wherein 4,559 out of 5,494 landslide events were experienced during the rainy season of 2017, Of the total 690, Tamil Nadu suffered 603 landslide events in 2018 alone
- Among all these states, an alarming situation is emerging from Uttarakhand and Kerala
- While Uttarakhand’s fragility was recently exposed during the land subsidence events reported from Joshimath since January, this Himalayan state has experienced the second highest number (11,219) of landslides since 1998, all events since occurring post 2000
- The year-wise number of landslide events in the state is: 2003 (32), 2010 (307), 2012 (473), 2013 (6,610), 2017 (1), 2021 (329) and 2022 (1)
- The number of districts with the maximum landslide exposure are in Arunachal Pradesh (16), Kerala (14), Uttarakhand and Jammu and Kashmir (13 each), Himachal Pradesh, Assam and Maharashtra (11 each), Mizoram (8) and Nagaland (7)
- Kerala has been consistently reporting massive landslides since it suffered the century’s worst floods in 2018
- The year-wise landslide events here are 2018 (5,191), 2019 (756), 2020 (9) and 2021 (29).
- From the events and images obtained, the NRSC ranked Rudraprayag in Uttarakhand at the top of 147 vulnerable districts
- It has the highest landslide density in the country, along with having the highest exposure to total population and number of houses
For Prelims & Mains
| For Prelims: Landslides, climate change, ISRO, Disaster management, National Remote Sensing Centre, Landslide Atlas of India |
Previous year questions
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1. Which of the following statements in respect of landslides are correct? (NDA 2022) 1. These occur only on gentle slopes during rain.
2. They generally occur in clay-rich soil.
3. Earthquakes trigger landslides.
Select the correct answer using the code given below. A. 1 and 2 B. 2 and 3 C. 1 and 3 D. 1, 2 and 3 Answer: (B) For Mains: 1. Describe the various causes and the effects of landslides. Mention the important components of the National Landslide Risk Management Strategy. (250 words) (2021)
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Source: The Down to Earth
QUAD
1. Context
Three weeks after Prime Minister Narendra Modi visited Russian President Vladimir Putin in Moscow, India joined the US, Australia and Japan in the Quad grouping Monday to express its “deepest concern” over the “war raging in Ukraine”, and flagged “respect for sovereignty and territorial integrity” — a clear reference to Russian invasion of Ukraine
2. Quadrilateral Security Dialogue (QUAD)
- The Quad, short for the Quadrilateral Security Dialogue, is a strategic forum comprising four major Indo-Pacific countries: the United States, Japan, India, and Australia.
- The Quad was initiated in 2007 but was relatively dormant for several years before experiencing a revival and increased prominence in recent times.
3. Objectives
- The Quad aims to promote a free, open, and inclusive Indo-Pacific region. Its core objectives include ensuring regional security, stability, and economic prosperity.
- It seeks to uphold the rules-based international order and address common challenges such as maritime security, infrastructure development, economic connectivity, and disaster response.
4. Member Countries
- United States: As a major Pacific power, the U.S. plays a central role in the Quad, emphasizing its commitment to the Indo-Pacific region's security and stability.
- Japan: Japan is a key member, contributing its economic and technological prowess, and advocating for a rules-based international order.
- India: India brings its strategic location and growing influence in the Indo-Pacific to the Quad, strengthening regional security cooperation.
- Australia: Australia is a significant player, contributing to maritime security efforts and championing economic development in the Indo-Pacific.
5. Meetings and Engagement
- The Quad holds regular meetings at various levels, including ministerial meetings and consultations among senior officials.
- It engages in dialogues on a wide range of regional and global issues, from security and defense to infrastructure development and technology cooperation.
Regional Implications:
- The Quad has been viewed as a response to China's rising influence in the Indo-Pacific. However, member countries emphasize that it is not an alliance against any specific country but rather a platform for cooperation on shared interests.
- Some view the Quad as a potential counterbalance to China's assertive behavior in the South China Sea and its Belt and Road Initiative (BRI) infrastructure projects.
Expanding Partnerships:
- The Quad has sought to expand its partnerships with other countries in the Indo-Pacific, including Southeast Asian nations. This approach reflects its commitment to inclusivity and regional engagement.
6. Significance of QUAD for India
The Quad holds significant importance for India due to several strategic, economic, and geopolitical reasons:
Countering Regional Challenges:
- The Quad provides India with a platform to collaborate with like-minded countries, such as the United States, Japan, and Australia, to address common regional challenges. These challenges include maritime security, territorial disputes, and economic concerns in the Indo-Pacific.
Strengthening Regional Security:
- As a member of the Quad, India gains access to enhanced security cooperation, intelligence sharing, and joint exercises. This bolsters its ability to protect its interests and contribute to regional stability in the face of security threats.
Balancing China's Influence:
- India views the Quad as a mechanism to balance China's growing influence in the Indo-Pacific. It helps deter aggressive actions and assertive behavior by China, particularly in areas like the South China Sea and the Indian Ocean region.
Economic Opportunities:
- The Quad promotes economic connectivity and infrastructure development in the Indo-Pacific. India can leverage these initiatives to enhance its trade, investment, and connectivity in the region, which is vital for its economic growth.
Strengthening Ties with Key Allies:
- The Quad allows India to deepen its strategic partnerships with key allies, such as the United States and Japan. These relationships have resulted in increased defense cooperation, technology sharing, and economic collaboration.
Regional Leadership Role:
- Participation in the Quad elevates India's status as a regional leader in the Indo-Pacific. It aligns with India's "Act East" policy, reinforcing its commitment to the stability and prosperity of the broader region.
7. Challenges
- China's Territorial Claims: China claims that it has historical ownership over nearly the entire region of the South China Sea, which gives it the right to manufacture islands. However, the International Court of Arbitration rejected the claim in 2016.
- China's Closeness to ASEAN: The ASEAN countries also have a well-knit relationship with China. The Regional Cooperation Economic Partnership (RCEP) is a recent example of China's increasing influence over ASEAN nations.
- Economic Power of China: Considering the economic might of China and the dependence of QUAD nations like Japan and Australia on China, the QUAD nations can not afford to have strained relations with it.
- Convergence among Quad Nations: The nations in the Quad grouping have different aspirations, and aims at balancing their own interest. Therefore, coherence in the vision of the Quad nation as a grouping is absent.
8. Way forward
The Quad represents a forum for strategic cooperation among four major Indo-Pacific nations, with a focus on regional security, economic development, and upholding the rules-based international order. Its evolving role in the region will likely be a subject of ongoing geopolitical interest and debate.
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For Prelims: Quadrilateral Security Dialogue (QUAD), South China Sea, Belt and Road Initiative (BRI), Indo-Pacific region, ASEAN, and Regional Cooperation Economic Partnership (RCEP).
For Mains: 1. Discuss the evolution, objectives, and geopolitical significance of the Quad (Quadrilateral Security Dialogue) in the context of the Indo-Pacific region. Analyze the challenges and opportunities it presents for the member countries, particularly India. (250 words).
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Source: The Indian Express
MONSOON IN INDIA
1. Context
For more than 15 years now, Indian cities have been failing the monsoon test. This year, several parts of Delhi have been submerged on more than one day, Guwahati has faced a crippling flood, and last week, torrential rains brought lives to a standstill in several parts of Maharashtra, including Pune and Mumbai.
2. What is a Monsoon?
A monsoon is a seasonal weather pattern characterized by changes in the direction of prevailing winds, which typically result in distinct wet and dry seasons. Monsoons are caused by the differential heating of land and sea, which creates pressure gradients that drive large-scale wind systems.
Key features of a monsoon include:
- Monsoons involve a significant shift in wind direction between seasons. During the wet season, winds blow from the ocean towards the land, bringing moist air and heavy rainfall. During the dry season, winds reverse direction, blowing from the land to the ocean, resulting in dry conditions
- The wet season is marked by heavy and sustained rainfall, often leading to flooding and lush vegetation growth. The dry season, in contrast, has little to no rainfall, leading to drought conditions in some regions
- Monsoons are most commonly associated with South Asia, particularly the Indian subcontinent. Other regions that experience monsoon patterns include Southeast Asia, parts of Africa, Australia, and the southwestern United States
- Monsoons play a crucial role in the climate and agriculture of affected regions. They provide essential water for crops and replenish groundwater supplies. However, they can also cause destructive flooding and landslides
3. Indian Monsoon
- The Indian monsoon is a significant and complex weather phenomenon that has a profound impact on the climate, agriculture, and economy of the Indian subcontinent one of the most well-known and studied monsoon systems is the Indian monsoon, which significantly affects the climate and economy of India and its neighbouring countries.
- Southwest Monsoon: Occurs from June to September. Winds blow from the southwest, bringing moisture-laden air from the Indian Ocean, resulting in heavy rainfall over the Indian subcontinent.
- Northeast Monsoon: Occurs from October to December. Winds blow from the northeast, bringing drier air, although the southeastern coast of India and Sri Lanka receive some rainfall during this period.
4. Monsoon basics and dates
- The Southwest Monsoon from June to September delivers over 70% of India's annual rainfall. Typically, the monsoon reaches the Andaman Sea in the third week of May and moves onto the mainland through Kerala, with June 1 being the usual start date.
- Its progression is characterised by surges, advancing rapidly to central India before slowing down.
- By the end of June, it generally reaches north Uttar Pradesh, Delhi, and surrounding areas, covering the entire country by July 15. An early or timely onset does not ensure consistent or adequate rainfall throughout the season, nor does a delayed onset necessarily lead to below-average rainfall.
- The total rainfall from June to September is influenced by various factors and exhibits natural year-to-year variability, making each monsoon season unique. The distribution of rainfall is as important as the total amount.
- The India Meteorological Department (IMD) predicts 'above normal' rainfall for this season, estimated to be 106% of the Long Period Average of 880 mm (based on 1971-2020 data).
- This forecast of increased rainfall is largely due to the expected development of La Niña conditions, which typically enhance the Indian monsoon, and a positive phase of the Indian Ocean Dipole (IOD)
5.Branches of Indian Monsoon
The Indian Monsoon is broadly divided into two main branches, each with distinct characteristics and regions of influence: the Arabian Sea Branch and the Bay of Bengal Branch.
Arabian Sea Branch
Characteristics:
- Source: Originates from the southwestern part of the Arabian Sea.
- Path: Moves towards the western coast of India.
- Onset: Typically hits the Kerala coast around June 1st, marking the official start of the Southwest Monsoon.
Key Features:
- Western Ghats: The moist air from the Arabian Sea rises when it encounters the Western Ghats, causing heavy rainfall on the windward side.
- Progression: Advances northwards along the western coast, bringing significant rainfall to regions such as Goa, Karnataka, Maharashtra, and Gujarat.
- Reach: Extends into central and northwestern India, contributing to the monsoon rains in these areas.
Bay of Bengal Branch
Characteristics:
- Source: Originates from the southeastern part of the Bay of Bengal.
- Path: Moves towards the eastern coast of India and then travels northwestwards.
Key Features:
- Northeastern India: Initially brings heavy rainfall to northeastern states such as Assam, Meghalaya, and West Bengal as it hits the Eastern Himalayas.
- Progression: Moves across the Indo-Gangetic Plain, covering Bihar, Uttar Pradesh, and eventually reaching northern India including Delhi.
- Distribution: Influences the monsoon patterns in central and northern India, often merging with the Arabian Sea branch to provide widespread rainfall.
6.Factors affecting Indian Monsoon
Coriolis Force
The Coriolis Force is an apparent force resulting from the Earth's rotation. It influences the rotational movement seen in tropical cyclones, causing monsoon winds to deflect eastward and blow from the southwest to the northeast. Since the Earth's rotation is constant, the Coriolis Force experienced by air at a specific latitude and velocity remains steady.
Mascarene High
The Mascarene High is a significant high-pressure zone that drives the southwest monsoon winds toward the Indian subcontinent. Forming by mid-April, the strength of this high-pressure area is crucial in determining the intensity of the Indian monsoon. A stronger high leads to stronger winds and a more robust monsoon. A delayed formation of the Mascarene High can result in a delayed onset of the monsoon in India.
Indian Summer
High-pressure winds move towards low-pressure areas. The Himalayas play a key role in summer heating by blocking cold northern air, allowing for warmer conditions. During summer, India becomes extremely hot, and surrounding ocean temperatures rise. This creates a pressure gradient between the cooler sea air and the warmer land air, particularly over Rajasthan. Consequently, monsoon winds are drawn towards the low-pressure area over India.
Indian Ocean Dipole
In 1999, N.H. Saji and colleagues from Japan’s University of Aizu identified the Indian Ocean Dipole (IOD), an ENSO-like phenomenon in the Indian Ocean. The IOD has three phases: positive, negative, and neutral. During the positive IOD phase, sea surface temperatures in the western Indian Ocean are warmer than in the eastern part. Conversely, during the negative phase, the eastern Indian Ocean is warmer. No significant gradient exists during the neutral phase. Positive IOD phases are associated with significantly higher Indian summer monsoon rainfall compared to negative IOD phases.
El Niño
El Niño refers to the occasional appearance of a warm ocean current off the coast of Peru, temporarily replacing the cold Peruvian current. Named after the infant Christ ("El Niño" means "the child" in Spanish) because it occurs around Christmas, El Niño leads to increased sea-surface temperatures and reduced trade winds in the region.
El Niño Southern Oscillation (ENSO)
The El Niño Southern Oscillation (ENSO) describes the cyclic variations in sea surface temperatures around the equatorial Pacific Ocean. ENSO's unpredictable nature has long challenged forecasters. It affects global weather patterns, especially in countries bordering the Pacific Ocean, by influencing air circulation.
Intertropical Convergence Zone (ITCZ)
The ITCZ is a broad low-pressure area found in equatorial latitudes where the northeast and southeast trade winds converge. This zone shifts north and south following the sun’s apparent movement. The position and strength of the ITCZ significantly affect the Indian Monsoon.
Tropical Easterly Jet (TEJ)
The TEJ plays a crucial role in initiating the southwest monsoon. This jet stream flows over the Indian Ocean near Madagascar, intensifying the high-pressure cell and triggering the southwest monsoon. Persistent high summer temperatures over Tibet help develop the easterly jet, leading to heavy rainfall in India. Conversely, if the Tibetan Plateau retains its snow cover, the easterly jet does not form, resulting in reduced monsoon rainfall in India. Thus, years with extensive snow in Tibet are typically followed by weaker monsoons and less rainfall
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For Prelims: Southwest monsoon El Nino, Coriolis Force For Mains: GS I- Monssons and their effects on Indian Agriculture |
Source: Indianexpress
INTERIM BUDGET
1. Context
The Budget has set out in detail its objectives and the action plans to achieve them. While the broad objectives are clear, the roadmaps to achieve the objectives, as spelt out in the Finance Minister’s speech, are hazy. The impact of the Budget depends upon how effectively the projects are implemented. This is particularly so when its emphasis is on expenditures
2. What is the interim budget?
An interim budget is a financial statement presented by the government of a country for a short period, typically covering the immediate needs and expenses until a full budget is presented. In many countries, including India, the government follows a fiscal year from April 1 to March 31. An interim budget is usually presented when the government's term is coming to an end, and elections are around the corner.
Key features of an interim budget include:
- Interim budgets are temporary and serve as a stopgap arrangement until a newly elected government can present a full budget.
- The focus of an interim budget is on essential expenditures, such as day-to-day expenses, salaries, and ongoing government schemes. It typically avoids introducing new policies or making major changes in taxation.
- Governments presenting interim budgets generally refrain from introducing major policy decisions or long-term fiscal measures, as those are usually reserved for a full budget.
- The interim budget seeks parliamentary approval for necessary spending to ensure the continuity of government operations until a new government can present a comprehensive budget.
In India, the Finance Minister typically presents an interim budget in the Lok Sabha (the lower house of Parliament) ahead of general elections. The interim budget is meant to ensure the government's financial continuity until a new government is formed, and it outlines estimates for government revenue and expenditure for the short term. It is important to note that the interim budget is distinct from the full budget, which is presented by the newly elected government after the elections.
3. Difference between the Interim Budget and Union Budget
| Feature | Interim Budget | Union Budget |
| Scope | Temporary; for a few months until new government takes over | Comprehensive; for the entire fiscal year |
| Purpose | Ensure continuity in government spending | Outline government's financial plan and introduce new policies |
| Timing | Presented before general elections or when there's a government transition | Presented annually on February 1st |
| Content | Focuses on essential expenditures; avoids major policy announcements | Comprehensive; includes revenue and expenditure estimates, policy initiatives, and tax proposals |
| Limitations | Cannot introduce new schemes or projects | Can introduce new schemes and alter existing ones |
| Policy Announcements | Generally refrains from major policy changes |
Introduces new policies, schemes, and tax proposals |
4. The difference between an interim budget and a vote on account
While an interim budget and a vote on account are both financial mechanisms used by governments, they serve different purposes and are distinct.
| Feature | Interim Budget | Vote on Account |
| Purpose | Complete budget presented during government transition, often in an election year. | Provision seeking parliamentary approval for essential spending to ensure government continuity for a specific period. Part of the interim budget. |
| Coverage | Covers entire government expenditures and receipts for the specified period. Includes routine expenditures, new policy announcements, and financial allocations. | Covers only routine and essential expenditures for a short duration. Does not include major policy changes or new long-term schemes. |
| Scope of Policy Changes | May includes policy changes, new schemes, and announcements, albeit minimised during a transitional period. | Typically does not include major policy changes or the introduction of new long-term schemes. Aimed at securing funds for routine functioning. |
| Timing | Presented during the year of a general election, often a few months before elections, to cover the transition period until a new government is formed. |
Specific provisions within the interim budget, are sought for a short period to cover immediate financial needs until a full budget is presented. |
5. Who presented the first interim budget in India?
- R. K. Shanmukham Chetty presented the first interim budget in India on November 26, 1947.
- At the time, India was still in its early months of independence and the budget covered only a period of seven months, from August 15, 1947, to March 31, 1948. This was due to the need to adjust to the partition of the country and the formation of a new government.
- Chetty, who was also the first Finance Minister of Independent India, played a crucial role in laying the foundation for India's economic development. His first budget focused on rebuilding the devastated economy after the partition and laying the groundwork for long-term growth.
6. The Way Forward
India can modernize interim budgets, ensuring their effectiveness in navigating financial transitions while adhering to responsible fiscal principles. This will pave the way for sustainable economic development and a smooth handover of responsibilities to the incoming government.
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For Prelims: Interim Budget, Union Budget, Vote on Account,
For Mains:
1. Critically analyze the role of interim budgets in a democratic system like India. Do they maintain financial stability amidst elections, or are they susceptible to populism and short-term gain? (250 Words)
2. Compare and contrast the key features of interim budgets with regular union budgets. How does this distinction impact long-term economic planning and policy implementation? (250 Words)
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Previous Year Questions
1. What is the difference between "vote-on-account" and "interim budget"? (UPSC 2011)
1. The provision of a "vote-on-account" is used by a regular Government, while an "interim budget" is a provision used by a caretaker Government.
2. A "vote-on-account" only deals with the expenditure in the Government's budget, while an "interim budget" includes both expenditure and receipts.
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: B
2. Vote on Account is meant for (BPSC 2016)
A. Vote on the report of CAG
B. To meet unforeseen expenditure
C. Appropriating funds pending the passing of the budget
D. Budget
E. None of the above/More than one of the above
Answers: 1-B, 2-C
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Source: The Indian Express
PMLA
1. Context
Citing the Supreme Court’s order granting bail to Delhi Chief Minister Arvind Kejriwal, a Mumbai Special Court, last week, released an accused in a money laundering case on the grounds that the Enforcement Directorate (ED) did not supply him the “reasons to believe” that he could be arrested.
2. About PMLA
- The Anti-money laundering legislation was passed by the National Democratic Alliance government in 2002 and came into force on July 1, 2005.
- The PMLA was showcased as India's commitment to the Vienna Convention on combating money, drug trafficking and countering the financing of terror (CFT).
- The law was aimed at curbing the process of converting illegally earned money into legal cash.
- The Act empowered the Enforcement Directorate (ED) to control money laundering, confiscate property and punish offenders.
- ED recorded around 5,422 cases, attached proceeds to the tune of ₹ 1,04,702 crores (approx), filed Prosecution Complaints in 992 cases resulting in the confiscation of ₹ 869. 31 crores and convicted 23 accused persons under PMLA by the end of March 31, 2022.
3. Effect on crypto
- The gazette notification by the Ministry brings cryptocurrency transactions within the ambit of PMLA.
- This means that Indian crypto exchanges will have to report any suspicious activity related to buying or selling of cryptocurrency to the Financial Intelligence Unit-India (FIU-IND).
- This central agency is responsible for receiving, processing, analysing and disseminating information related to suspicious financial transactions to law enforcement agencies and overseas FIUs.
- In its analysis, if the FIU-IND finds wrongdoing, it will alert the ED.
- Under Sections 5 and 8 (4) of the Act, the ED has discretionary powers to search and seize suspected property without any judicial permission.
4. Reasons for tightening the digital trade
- For a little more than a decade, cryptocurrencies, non-fungible tokens (NFT) and other digital assets enjoyed a regulation-free environment.
- But, in the past couple of years, as the use of digital assets has gone mainstream, regulators have turned hawkish.
- The value of all existing cryptocurrencies is about $804 billion as of January 3, 2023.
- It is about twice the GDP of Singapore in 2021.
- In India, over 10 crore Indians have invested in cryptocurrencies.
- The illegal use of cryptocurrencies hit a record $ 20.1 billion last year.
- Transactions associated with sanctioned entities jumped over 1, 00, 000-fold, making up 44 per cent of last year's illegal activity.
5. Tools used to track money laundering via crypto transactions
- Tracking money trail in cryptocurrency transactions may require new tools and approaches as such transfers differ fundamentally from traditional banking channels.
- FIUs may be familiar with Know Your Customer (KYC) or Customer Due Diligence (CDD) norms.
- But the technological nature of VDAs presents a new challenge in gathering information.
- This requires the intelligence unit to broaden its intelligence framework.
| The Cooperation between FIUs to prevent money laundering and recommends the analysis of crypto wallets, their associated addresses and blockchain records and hardware identifiers like IMEI (International Mobile Equipment Identity), IMSI (International Mobile Subscriber Identity) or SEID (Secure Element Identifier) numbers, as well as MAC addresses. |
6. Regulations in other Countries
- The Global Crypto Regulations Report 2023 a large proportion of countries are at various stages of drafting regulations around crypto.
- Most countries have already brought digital assets under anti-money laundering laws.
- Singapore, Japan, Switzerland and Malaysia have legislation on the regulatory framework.
- The U.S., U.K., Australia and Canada have initiated plans for regulation.
- So far, China, Qatar and Saudi Arabia have issued a blanket ban on cryptocurrency.
- The EU is also preparing a cross-jurisdictional regulatory and supervisory framework for crypto-assets.
- The framework seeks to provide legal clarity, consumer and investor protection and market integrity while promoting innovation in digital assets.
7. The Changes imply
- The new clause in the rules for PMLA compliance defines "Politically Exposed Persons" as individuals who have been entrusted with prominent public functions by a foreign country, including the heads of State or Governments, Senior politicians, Senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials.
- The amendment is about foreign PEPs and not domestic ones.
- The move to define politically exposed persons under PMLA is to bring uniformity with a 2008 circular of the RBI for KYC norms/Anti-money laundering standards for banks and financial institutions, which had defined PEPs in line with FATF norms.
- PEP has already been in the RBI's master circular, in line with FATF.
- The definition has now been given in the PMLA rules so that the same definition is applicable everywhere.
8. Significance of the FATF-related changes
- The amendments assume significance ahead of India's proposed FATF assessment, which is expected to be undertaken later this year.
- India's assessment is likely to come up for discussion in the plenary discussion in June, while the possible onsite assessment is slated for November.
- Due to the pandemic and the pause in the FATF's assessment process, the fourth round of mutual evaluation of India had been postponed to 2023.
- Before this, the FATF had undertaken an evaluation for India in June 2010.
- The FATF, which is the global money laundering and terrorist financing watchdog, has 40 recommendations.
- In its recommendations, the FATF states that financial institutions should be required to have appropriate risk-management systems to determine whether a customer or beneficial owner is a domestic PEP or a person who is or has been entrusted with a prominent function by an international organisation.
- The broader objective is to bring in legal uniformity and remove ambiguities before the FATF assessment.
- The 40 recommendations cover seven areas and provide a framework of measures.
- This is to help countries tackle illicit financial flows through laws, regulations and operational measures to ensure authorities can take action to detect and disrupt financial flows that fuel crime and terrorism.
The seven areas are anti-money laundering/ counter-terrorist financing;
- Policies and coordination;
- Money laundering and confiscation;
- Terrorist financing and financing of proliferation;
- Preventive measures;
- Transparency and beneficial ownership of legal persons and arrangements
- Powers and responsibilities of competent authorities and other institutional measures and
- International cooperation.
9. Other Changes in the PMLA rules
- The Amended rules have also lowered the threshold for identifying beneficial owners by reporting entities, where the client is acting on behalf of its beneficial owner, in line with the Companies Act and Income-tax Act.
- The term "beneficial owner" was defined to mean ownership of or entitlement to more than 25 per cent of shares or capital or profit of the company, which has now been reduced to 10 per cent, thereby bringing more indirect participants within the reporting net.
- Also, reporting entities are now required to register details of the client if it's a non-profit organisation on the DARPAN portal of NITI Aayog.
- Every Banking Company or Financial Institution or intermediary, as the case may be, shall register the details of the client, in case of the client is a non-profit organisation, on the DARPAN portal of NITI Aayog, if not already registered and maintain such registration records for five years after the business relationship between a client and a reporting entity has ended or the account has been closed, whichever is later.
- The definition of a non-profit organisation has also been amended and linked to the definition of charitable purpose provided under Section 2 (15) of the Income-tax Act 1961 to include any entity or organisation, constituted for religious or charitable purposes under I-T Act, that is registered as a trust or society under the Societies Registration Act or any similar state legislation or a company registered under the Companies Act.
- The due diligence documentation requirements, which were until now limited to obtaining the basic KYCs of clients such as registration certificates PAN copies and documents of officers holding an attorney to transact on behalf of the client have now been extended.
- It now includes the submission of details such as names of persons holding senior management positions, names of partners, names of beneficiaries, trustees, settlors and authors, as the case may be, depending upon the legal form of the organisation.
- Also, the details of the registered office address and principal place of business are now required to be submitted by clients to financial institutions, banking companies or intermediaries.
For Prelims & Mains
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For Prelims: Money Laundering Act, Financial Action Task Force, Enforcement Directorate, financing of terror, FIU-IND, NFT, Customer Due Diligence, IMEI, IMSI, SEID, Global Crypto Regulations Report 2023, cryptocurrencies, DARPAN portal of NITI Aayog, Income-tax Act 1961, Societies Registration Act, Companies Act,
For Mains:
1. What is the new Amendment to the Prevention of Money-laundering Act and how it will impact politically exposed persons and NGOs? (250 Words)
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Source: The Hindu and The Indian Express
LOK ADALAT
1. Context
Marking its 75th year, the Supreme Court kicked off a week-long, first-of-its-kind Lok Adalat, a “mega settlement drive”, as part of which, over the next four days, nearly 6,700 cases will be heard and disposed quickly. These cases will be taken up post lunch in the first seven courtrooms.
2. What are Lok Adalats?
Lok Adalats serve as an alternative method for resolving disputes, focusing on achieving amicable settlements. They offer litigants the advantage of prompt justice and significantly lower litigation costs. According to the Legal Services Authorities Act, 1987, decisions made in Lok Adalats are binding and cannot be appealed. In a response to the Lok Sabha, Union Law Minister Arjun Meghwal reported that as of December 2023, the backlog in the Supreme Court had risen to 80,765 cases, marking an increase of nearly 35% from the 59,859 cases recorded at the end of 2019
3.Reasons to establishing permanant Lok adalat
Permanent Lok Adalats (PLAs) were established in India to address several key issues within the traditional judicial system and improve the efficiency of dispute resolution.
The primary reasons for their establishment include:
- With the growing number of pending cases in the regular courts, there was a need for an alternative mechanism to handle disputes more efficiently and reduce the burden on the judiciary.
- PLAs aim to provide a quicker resolution to disputes compared to the often lengthy processes of traditional courts. This is intended to make justice more accessible and timely for the general public
- The traditional litigation process can be expensive. PLAs offer a cost-effective alternative by minimizing legal fees and other costs associated with court cases
- PLAs operate with a more informal and flexible approach compared to formal court proceedings. This helps in resolving disputes without the complexities and rigidity of traditional legal processes.
- By focusing on mediation and mutual agreements, PLAs promote settlements that are acceptable to all parties involved, rather than imposing a one-sided judgment.
- PLAs are designed to be more accessible to people from various backgrounds, including those who may not have the means to pursue lengthy legal battles in regular courts.
- Certain types of cases, such as those related to public utility services and compensation claims, are specifically handled by PLAs, allowing for specialized resolution in these areas.
4. What is the significance of the Lok Adalats?
Lok Adalats hold significant importance in the Indian legal system due to their role in enhancing the efficiency and accessibility of justice.
Their key significances include:
- Lok Adalats provide a faster resolution of disputes compared to traditional court proceedings, helping to alleviate the burden on the judiciary and reduce case backlogs.
- They offer a more affordable alternative to litigation, reducing legal costs for parties involved. This is particularly beneficial for economically disadvantaged individuals who might otherwise be unable to afford legal representation
- Lok Adalats are designed to be more accessible and less formal than traditional courts, making it easier for people from various backgrounds to participate and seek justice
- They focus on mediation and conciliation, encouraging parties to reach mutually acceptable agreements rather than having a decision imposed upon them. This approach fosters a collaborative rather than adversarial resolution
- By promoting settlement and avoiding lengthy litigation, Lok Adalats help minimize the conflict and stress associated with adversarial legal processes
- Lok Adalats often raise awareness about legal rights and dispute resolution mechanisms among the public, empowering individuals to seek justice and understand their legal options
- They handle specific types of cases, such as those related to public utility services, family matters, and compensation claims, allowing for specialized attention and resolution
- By resolving disputes outside the traditional court system, Lok Adalats help in managing the workload of regular courts, contributing to the overall efficiency of the judicial system
- Lok Adalats often involve community members, legal professionals, and social workers, fostering a sense of collective responsibility and involvement in the justice process
5.What are the features of the permanent Lok Adalats?
Permanent Lok Adalats (PLAs) in India are a key component of the alternative dispute resolution mechanism. They have several distinct features that set them apart from regular courts and other forms of dispute resolution.
Here are the main features of PLAs:
- Unlike occasional Lok Adalats, PLAs operate on a permanent basis, ensuring ongoing availability for resolving disputes. They are established in various districts and are meant to function continuously
- PLAs typically handle certain types of cases, including public utility services disputes, compensation claims (such as those related to motor accidents), and other matters where disputes are likely to arise frequently
- The proceedings in PLAs are less formal compared to traditional courts. The process is designed to be user-friendly and less intimidating for the parties involved
- The focus of PLAs is on mediation and conciliation, aiming to achieve a mutually acceptable settlement between the parties. This approach is intended to be collaborative rather than adversarial
- PLAs are chaired by a sitting or retired judge, along with other legal experts or social workers who have experience in dispute resolution. This ensures that the proceedings are conducted with legal and procedural expertise
- The services provided by PLAs are generally free or involve minimal costs, making them a cost-effective alternative to traditional litigation
- PLAs aim to resolve disputes quickly, often providing a faster resolution compared to the lengthy process of traditional court cases
- Decisions made by PLAs are legally binding and have the same enforceability as a court decree. Once a settlement is reached and recorded, it is legally enforceable
- PLAs are designed to be accessible to the general public, including individuals who may not have the resources to pursue lengthy legal battles in regular courts
- PLAs often play a role in educating the public about their legal rights and the available mechanisms for resolving disputes. This helps in increasing legal literacy and awareness
6. What is Alternative Dispute Redressal (ADR)?
Alternative Dispute Resolution (ADR) refers to a range of processes designed to resolve disputes outside the traditional judicial system. ADR methods are used to settle conflicts in a more informal, flexible, and often quicker manner compared to conventional court proceedings.
The main types of ADR include:
- In mediation, a neutral third party, called a mediator, helps the disputing parties communicate and negotiate to reach a mutually acceptable agreement. The mediator does not make decisions but facilitates dialogue and helps parties find common ground
- Arbitration involves a neutral third party, called an arbitrator or an arbitration panel, who makes a binding decision on the dispute after hearing arguments and reviewing evidence. Arbitration is often used for commercial disputes and can be less formal than court trials
- Conciliation is similar to mediation but often involves a more proactive role by the conciliator, who may suggest solutions and propose terms for settlement. The goal is to help the parties reach an agreement in a less adversarial manner
- In negotiation, the parties involved in a dispute directly communicate with each other to reach a settlement without the involvement of a third party. This method relies on the parties' ability to find a mutually acceptable resolution through direct discussion
- Specific to India, Lok Adalats are informal, community-based dispute resolution forums where cases are settled through mediation and conciliation, focusing on amicable settlements and quick resolutions
7.What are the challenges of the ADR mechanisms?
- ADR processes are often less formal than court proceedings, which can lead to inconsistencies in how disputes are resolved. The lack of standardized procedures may affect the predictability and fairness of outcomes.
- While decisions in arbitration are generally binding, those reached through mediation or negotiation may not always be legally enforceable unless formalized through a legal agreement. This can be a concern if parties do not adhere to the terms of the settlement.
- In ADR, especially in mediation and negotiation, power imbalances between the parties can affect the fairness of the process. One party may dominate or coerce the other, leading to unequal outcomes
- ADR decisions, particularly in arbitration, often have limited scope for appeal. This means that parties may have less recourse if they believe the decision was unfair or incorrect.
- While confidentiality is a feature of ADR, it can also be a challenge. The private nature of ADR proceedings can sometimes hinder transparency and accountability, especially in cases where public interest is significant
- The effectiveness of ADR largely depends on the skills and experience of the mediators, arbitrators, or conciliators involved. Inconsistent quality among ADR professionals can affect the outcomes and credibility of the process
- Parties may sometimes resist or fail to comply with ADR settlements, particularly if they perceive the process as biased or unfair. Ensuring compliance with ADR agreements can be a challenge
- ADR might not be suitable for very complex disputes or cases requiring detailed legal analysis. Some issues might be better suited for formal judicial resolution due to their complexity
- ADR does not create legal precedents, which means that similar cases might be resolved differently depending on the ADR process used. This can lead to uncertainty in how similar disputes are handled in the future
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For Prelims: Polity
For Mains: GS-II: Constitution and Polity
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Previous Year Questions
1.With reference to Lok Adalats, which of the following statements is correct? (UPSC CSE 2010) (a) Lok Adalats have the jurisdiction to settle the matters at pre-litigative stage and not those matters pending before any court (b) Lok Adalats can deal with matters which are civil and not criminal in nature (c) Every Lok Adalat consists of either serving or retired judicial officers only and not any other person (d) None of the statements given above is correct Answer (d)
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Source: Indianexpress
HUNGER STRIKE AS A MODE OF PROTEST
1. Context
Hunger-strikes have always raised a series of complicated moral questions, such as whether it is appropriate to provide medicine against the will of a person on strike; or if force-feeding could be a dangerous protocol
2. Hunger Strikes
A hunger strike is a form of protest where individuals refuse to eat (and sometimes drink) in order to achieve a political or social goal. The practice is often used to draw attention to a cause, demand changes in policy, or highlight injustices. It can be a powerful way to express dissent, but it also poses serious health risks to those involved.
Notable historical examples include:
- Mahatma Gandhi: Used hunger strikes as a method of nonviolent protest during the Indian independence movement.
- Bobby Sands: An Irish Republican who went on a hunger strike in 1981 while imprisoned, which drew international attention to the political situation in Northern Ireland.
- Medea Benjamin: An activist who has used hunger strikes to protest various issues, including U.S. foreign policy
3. Revolutions by Starvation
- The concept of using hunger strikes as a form of political or social protest began to take shape in the late 19th century. Russian political prisoners under Tsarist rule, known as golodovka, used hunger strikes in Siberia to protest poor prison conditions.
- In 1898, a young Leon Trotsky led a hunger strike among other prisoners. In 1909, imprisoned suffragette Marion Wallace Dunlop began refusing food to be recognized as a political prisoner, inspiring other suffragettes to adopt the same method. In response, authorities implemented force-feeding, which resulted in the deaths of many suffragettes.
- The most significant impact on the development and popularization of hunger strikes came from the Irish republicans. In 1920, Terence MacSwiney died after refusing to be force-fed, and his death was followed by the martyrdom of 20 other revolutionaries
4.Examples in India
- In various local movements, revolutionaries from different political and ideological backgrounds have used hunger strikes as a means of protest, often facing martyrdom as a result. For example, Pandit Ram Rakha, a member of the Ghadar Party, died after refusing food to protest the forced removal of his janeu (sacred thread) by prison officials.
- Conversely, Ghadar Party leader Sohan Singh Bhakna engaged in a hunger strike to protest the segregation of Mazhabi Sikhs, who were considered 'low caste,' during his imprisonment in Lahore's central jail.
- Vinayak Savarkar, who generally opposed hunger strikes, unexpectedly considered undertaking one himself. When young Bengali revolutionary Nani Gopal Mukherjee went on a 72-day hunger strike to protest poor prison conditions, Savarkar, worried about Mukherjee’s health and having failed to persuade him to end his strike, threatened to starve himself if Mukherjee did not call off his protest. Mukherjee ended his strike in December 1912.
- Revolutionaries Bhagat Singh and Batukeshwar Dutt, while imprisoned, protested dire jail conditions by initiating an indefinite hunger strike, which was soon joined by their comrades. During this period, Jatin Das made his well-known “iota by iota” statement.
- After two weeks, the prison authorities attempted to force-feed the strikers, and during one such attempt, the feeding tube punctured Das's lung. He became paralyzed and, after 63 days on hunger strike, died on September 13, 1929, at the age of 24. He was later remembered as the "Indian Terence MacSwiney."
- Mahatma Gandhi, a staunch advocate of non-violence, preferred the term 'fasting' rather than 'hunger strike' and viewed fasting as a tool for reform rather than coercion. He believed fasting should be used to persuade and reform rather than to demand rights.
- For instance, Gandhi fasted for three weeks after the Chauri Chaura incident in 1922 to appeal for an end to violence.
- In September 1932, he undertook another fast unto death to oppose the British decision to reserve seats for Dalits in provincial legislatures, which was opposed by Dr. B.R. Ambedkar, who favored direct political representation for Dalits. Ultimately, Dr. Ambedkar yielded to Gandhi’s protest, but the experience left a lasting impact on him, leading him to later criticize the methods of civil disobedience and satyagraha, favoring constitutional methods instead.
- These diverse examples highlight the complex role of hunger strikes as a tool of protest, showcasing both their power and their potential for causing significant harm
5. Monopoly on Violence
- The first significant fast-unto-death protest in independent India occurred in 1952 when Potti Sriramulu called for the formation of a separate Andhra Pradesh. After 58 days of fasting, Sriramulu’s death ignited widespread protests and ultimately led to the creation of the new state.
- Another prominent hunger strike was led by Irom Sharmila in November 2000, following the alleged killing of 10 civilians by the 8th Assam Rifles in Manipur. Sharmila began an indefinite hunger strike and was arrested for attempted "suicide," remaining in police custody for 16 years while continuing her protest.
- Before India's independence from British rule, hunger strikes were primarily employed by freedom fighters against colonial oppression.
- However, these examples illustrate that even without a foreign occupying force, hunger strikes remain a significant challenge for the state.
- The primary focus often becomes suppressing the strike, which can lead to harsh measures, including violence by prison authorities aimed at ending the protest. With the state’s control over violence, such mistreatment can persist unchecked. At times, authorities may even attribute a hunger striker's death to unrelated causes.
- For instance, Mohan Kishore Namadas, a Bengali revolutionary who died in prison, was reported to have died of “lobar pneumonia,” with no mention of the forced feeding he endured. Achyut Ghatak, another revolutionary, described how protesters would cough heavily to move the feeding tube away from their throat to their mouths, where they would bite down to prevent food from being inserted.
- Despite these abuses, some jail doctors and prison staff have refused to participate in the mistreatment of hunger strikers. Ultimately, the state's actions depend on the individuals within it, and without their complicity, the protection of a prisoner’s rights remains largely theoretical
6.Social dilemma
- Some argue that a hunger strike carried out to the point of death resembles suicide. Theologian Herbert McCabe, in 1981, compared this notion to the debate over whether Margaret Thatcher could be considered a murderer due to the death of Irish Republican Army activist Bobby Sands, who perished after 66 days on a hunger strike. Sands, a devout Catholic, reportedly reflected on his choice, saying, “If I die, God will understand.”
- From its inception, the practice of hunger strikes has provoked complex and potentially unsolvable ethical dilemmas.
- These include questions about whether it is right to administer medicine or nutrition against a hunger striker’s will, the risks associated with force-feeding, and whether doctors who participate in force-feeding are upholding their Hippocratic oath.
- Hunger strikes represent a final form of resistance, highlighting the need for societies to be more aware of their responsibilities when dealing with hunger strikers and the broader issues of state response.
- A state that fails to recognize the significance of these protests and resorts to brutal measures against individuals who sacrifice their health for political or social causes can only lead to tragic outcomes
7.Way Forward
This sentiment may be what Yeats sought to convey in his play The King’s Threshold. Yeats wrote, “...if a man is wronged, or believes he is wronged, and he starves at another’s doorstep until he dies,” he observed, “The Common People, forever afterward, will condemn that doorstep, even if it belongs to the King.” This belief is what has sustained the use of hunger strikes as a form of protest; the hope that others will recognize the injustice and raise a strong outcry against it.
Source: The Hindu
