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DAILY CURRENT AFFAIRS, 07 OCTOBER 2024

COMPETITION COMMISSION OF INDIA

 
 
1. Context
The Karnataka High Court has stayed the Competition Commission of India’s (CCI) investigations into Amazon and Flipkart.
 
2. Competition Commission of India
  • The Competition Commission of India (CCI) is a regulatory authority established in India to promote and protect fair competition in the marketplace.
  • It was established under the Competition Act, 2002, and became fully functional in 2009.
  • The primary objective of the CCI is to prevent anti-competitive practices, ensure a level playing field for businesses, and promote consumer welfare
  • The Competition Commission of India (within the Ministry of Corporate Affairs) has been established to enforce the competition law under the Competition Act, 2002.
  • It should be noted that on the recommendations of Raghavan committee, the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002
  • The Commission consists of a Chairperson and not more than 6 Members appointed by the Central Government
  • It is the statutory duty of the Commission to eliminate practices having an adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India as provided in the Preamble as well as Section 18 of the Act.
  • The Commission is also mandated to give its opinion on competition issues to government or statutory authority and to undertake competition advocacy for creating awareness of competition law.
  • Advocacy is at the core of effective competition regulation. Competition Commission of India (CCI), which has been entrusted with implementation of law, has always believed in complementing robust enforcement with facilitative advocacy. It is a quasi-judicial body.
 
3. Key functions and responsibilities 

Here are some key functions and responsibilities of the Competition Commission of India:

  1. Competition Advocacy: The CCI engages in advocacy and education activities to promote competition awareness among businesses, government agencies, and the public.

  2. Antitrust Enforcement: The CCI investigates and takes action against anti-competitive agreements, abuse of dominance by companies, and anti-competitive mergers and acquisitions. It can impose penalties and remedies on entities found to be in violation of competition laws.

  3. Merger Control: The CCI reviews and approves or disapproves mergers, acquisitions, and combinations that may have an adverse impact on competition in the Indian market. It assesses whether these transactions are likely to cause a substantial lessening of competition.

  4. Market Studies and Research: The CCI conducts studies and research to understand market dynamics, competition issues, and emerging trends. This information helps in formulating policies and recommendations to improve competition.

  5. Competition Advocacy: The commission engages in advocacy efforts to promote competition principles and practices among businesses, government agencies, and the public.

  6. Consumer Protection: While primarily focused on promoting competition, the CCI also indirectly promotes consumer welfare by ensuring that markets remain competitive and that consumers have choices and access to fair prices.

  7. Regulation of Anti-Competitive Practices: The CCI addresses practices such as price-fixing, bid rigging, and abuse of market power that can harm competition and consumers.

  8. Legal Proceedings: The CCI has the authority to conduct investigations, hold hearings, and pass orders. Its decisions can be appealed to higher courts in India.

4. What is the Competition Act?
 
  • The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws.
  • The Act prohibits anti-competitive agreements, and abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India
  • In accordance with the provisions of the Amendment Act, the Competition Commission of India and the Competition Appellate Tribunal have been established
  • The government of India replaced Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017
  • The provisions of the Competition Act relating to anti-competitive agreements and abuse of dominant position were notified on May 20, 2009
Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers
 
5. What is Cartelisation?
Cartels can be difficult to define. According to CCI, a “Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services”

The International Competition Network, which is a global body dedicated to enforcing competition law, has a simpler definition. The three common components of a cartel are:

  • an agreement;
  • between competitors;
  • to restrict competition.
6. Way forward
CCI needs to revisit its definition of ‘relevant market’. In the age of digital world, defining relevant market has been a tough task for regulators world-wide. Technological developments like Web 3.0, AI, IoT, Blockchain and issues like data protection and privacy, search bias, platform neutrality, confidentiality, etc, have created a need for a robust competition law. Such a law should meet the demands of the technological era we live in.
 
 
For Prelims: Statutory board, Constitutional body
For Mains: 1.Discuss the role and functions of the Competition Commission of India (CCI) in promoting and ensuring fair competition in the Indian market
2.Examine the challenges and limitations faced by the Competition Commission of India (CCI) in effectively regulating and promoting competition in the digital economy
 
Previous year Questions
 1. Competition Commission of India is which kind of body? (RSMSSB Sanganak 2018)
A. Statutory body
B. Constitutional.
C. Single Member
D. Private
Answer (A)
 
Source: indianexpress
 

FRICTION POINTS IN LAC

1. Context 

The Ukraine war front has showcased the adaptability of battle tanks, proving that armour is even more essential in the new-age battlefield in addition to long-range firepower. In another arena, after the May 2020 stand-off in the Eastern Ladakh sector between India and China, armies and tanks of both have been deployed at altitudes of 13,000-15,000 feet, in some cases barrels facing each other 100 metres apart
 

2. Disengagement process

  • Since the Corps commander-level talks in 2020, the two sides have so far undertaken disengagement from five friction points at Galwan after the violent clash in June 2020, the north and south banks of Pangong Tso in February 2021, at Patrolling Point (PP) 17 in the Gogra-Hot Springs area in August 2021 and PP15 in September 2022.
  • On the Depsang Plains and Demchok, there are fundamental disagreements, as India maintains that they terming them as legacy issues predating the 2020 standoff.
  • On several occasions, the situation along the LAC as "stable but unpredictable" while stating that five out of the seven friction points in Eastern Ladakh have been resolved and the focus is now on the remaining two points.
  • The 18th round of Corps Commander talks was held at the Chushul Moldo meeting point on the Chinese side on April 23, 2023.
  • The Indian stance on the same was consistent, i.e. restoration of status quo ante as on April 2020.
  • The above entails the restoration of patrolling rights till the traditional patrolling points.
  • On May 31, 2023, India and China held the 27th Meeting of the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) in New Delhi which made no headway and the two sides agreed to hold the 19th round of Corps Commanders talks very soon.
  • In the past, Beijing has said that it would not accept India's demand for the restoration of the status quo ante before the standoff saying that "the status quo of April 2020 was created by India's illegal crossing of the LAC.
  • Meanwhile, China has been undertaking a massive build-up of infrastructure, habitat and induction of new weapons and equipment along the 3, 488 km-long LAC, fundamentally altering the status quo on the ground.
  • India too has been building infrastructure and undertaking capability enhancement to match the Chinese.
  • This is in addition to the over 50, 000 troops and heavy equipment, on each side, which continue to be deployed close to the LAC in Eastern Ladakh.
  • Against this backdrop, any de-escalation to restore the status quo predating the standoff looks remote.
Image source: Indian Defence Review

3. About Buffer zones and their status

  • During the disengagement process, buffer zones were created at the friction points as per the understanding reached by the Corps Commanders-level talks.
  • It was decided that both sides would pull back at an equal distance from the friction points to prevent any fresh flare-ups; also, no patrolling would be undertaken by both side till the overall disengagement and de-escalation are achieved after which the two sides have to work out new patrolling norms to maintain peace and tranquillity.
  • All disengagements carried out earlier have been done based on mutual and equal security with no prejudice to LAC claims by either side.
  • Since the beginning of the standoff, China had moved a large number of troops and equipment close to the LAC in addition to the ingress by Chinese troops inside Indian territory at friction points.
  • On the North Bank, Chinese troops made ingress from Finger 8 up to Finger 4 blocking Indian Patrols.
  • India holds its place till Finger 4 but claims territory till Finger 8 as per the alignment of the LAC.
  • Disengagement has been undertaken there since and buffer zones at all five points continue to be in place.
  • To ensure that the Chinese are fully honouring the understanding reached, verification by aerial monitoring using Unmanned Aerial Vehicles (UAV) as well as satellites is undertaken regularly.
  • During the first phase of disengagement, both sides had pulled back troops by an equal distance from Patrolling Points (PP) 14 in Galwan Valley and PP 15 in Gogra-Hot Springs during which violent clashes occurred resulting in the deaths of 20 Indian Personnel and at least five deaths on the Chinese side.

4. The strategic significance of Depsang

  • Demchok is one of the two mutually agreed-disputed areas in Eastern Ladakh, while Depsang is another friction point.
  • In Demchok, while there are varying claims in the Charding La area, China has set up tents on this side of Charding Nala.
  • The crucial SubSector North (SSN) consists of the Depsang plains and Daulat Beg Oldie (DBO).
  • Currently, the airfield at DBO is accessible by the 255 km-long Darbuk-Shyok-DBO (DSDBO) road.
  • A plan for an alternate axis across Saser La which has an ancient trade route is in the works.
  • In Depsang Plains, Chinese troops have been blocking Indian Army patrols from going up to the PPs 10, 11, 11A, 12 and 13 beyond the Y junction.
  • Chinese build-up in this area threatens Indian positions at DBO and also brings Chinese troops closer to the DSDBO road.
  • Depsang is also close to the Karakoram Pass overlooking the strategic Saltoro ridge and Siachen glacier, the World's highest battlefield.
  • Senior officials have stated that the Indian Army last accessed the patrolling points in Depsang in January and February 2020.
  • Also, the distance from the Limit of Patrol (LoP) on which the PPs are marked, to the LAC is the maximum in the Depsang area.
  • Depsang has seen several face-offs in the past and as reported earlier, officials pointed out that as India's capacity in the areas increased, especially since 2013, the number of troops and frequency of patrols had gone up and with it the number of face-offs.
For Prelims: LAC, India-China, Galwan, buffer zones, Unmanned Aerial Vehicles, Patrolling Points, Depsang, DSDBO road, Karakoram Pass, Siachen glacier, 
For Mains: 
1. What are the differences that persist between India and China on the Depsang Plains and Demchock? Explain where have buffer zones been created during the disengagement process. (250 Words)
 
 
Previous Year Questions
 
1. LAC (Line of Actual Control) is an effective border between India and ______. (SSC CHSL  2021) 
A.  Pakistan         B. Bhutan            C. Sri Lanka            D. China
 
Answer: D
 
2. What is/are correct among the following? (CGPSC 2022) 
(i) Galwan River was named after Ghulam Rassul Galwan
(ii) Ghulam Rassul Galwan was a Laddakhi explorer
(iii) He wrote a book in English named ‘Servants of Sahibs’
A. (i), (ii) and (iii)
B. (i) and (ii)
C. (i) and (iii)
D. Only (i)
 
Answer: A
 
3. When did the clash between the soldiers of India and China take place in the Galwan Valley? (67th BPSC 2022)
A. December 2019
B. April 2019
C. January 2020
D. June 2020
E. None of the above/More than one of the above
 
Answer: D
 
4. With reference to 'Eco-Sensitive Zones', which of the following statements is/are correct?  (UPSC 2014)
1. Eco-Sensitive Zones are the areas that are declared under the Wildlife (Protection) Act, 1972 2. The purpose of the declaration of Eco-Sensitive Zones is to prohibit all kinds of human activities in those zones except agriculture.
Select the correct answer using the code given below.
A. 1 only          B. 2 only        C. Both 1 and 2           D. Neither 1 nor 2
 
Answer: D
 
5. Consider the following statements: (UPSC 2010)
1. The boundaries of a National Park are defined by legislation.
2. A Biosphere Reserve is declared to conserve a few specific species of flora and fauna.
3. In a Wildlife Sanctuary, limited biotic interference is permitted.
Which of the statements given above is/are correct?  
A. 1 only      B. 2 and 3 only         C. 1 and 3 only         D.  1, 2 and 3
 
Answer: C
 
6. Consider the following activities:  (UPSC 2020)
1. Spraying pesticides on a crop field.
2. Inspecting the craters of active volcanoes.
3. Collecting breath samples from spouting whales for DNA analysis.
At the present level of technology, which of the above activities can be successfully carried out by using drones?
A. 1 and 2 only     B.  2 and 3 only     C.  1 and 3 only      D.  1, 2 and 3
 
Answer: D
 
7. Consider the following statements regarding Depsang Plains. (Haryana Civil Services 2021)
1. It is formed by fertile alluvium soils.
2. The plain is found at the higher altitudes.
3. It is covered with dense coniferous forests.
Which of the statements given above is/are correct?
 A. 1 only        B. 2 only           C. 1 and 3 only            D. 2 and 3 only
 
Answer: B
 
8. Karakoram a mountain range, is of great geopolitical significance as: (IB ACIO Grade II  2021)
1. It connects India and China.
2. It serves as a watershed for the basins of the Indus and Yarkand rivers.
3. The borders of India, China, Pakistan along Afghanistan and Tajikistan all converge within the Karakoram system.
Select the correct answer using the codes given below.
A. Only 1 and 2         B. Only 3              C. Only 2 and 3        D.Only 2
 
Answer: C
 
9. Siachen Glacier is situated to the (UPSC 2020) 
A. East of Aksai Chin
B. East of Leh
C. North of Gilgit
D. North of Nubra Valley
 
Answer: D
 
10. Siachen glacier is located in the following range: (WBCS Prelims 2021) 
A. Karakoram     B. Zaskar      C. Pir Panjal       D. Shiwalik
 
Answer: A
 
Source: The Hindu 
 

PERIODIC LABOUR FORCE SURVEY (PLFS)

 
 

1. Context

The Periodic Labour Force Survey (PLFS) of India 2023-24 data has a slightly dull picture of Maharashtra compared with the national average. While both labour force and workforce participation rates increased by about 2 percentage points for India, the same metrics have seen a marginal dip compared with 2022-23 for the State.

2. About The Periodic Labour Force Survey (PLFS)

  • The Periodic Labour Force Survey (PLFS) is a sample survey conducted by the National Sample Survey Office (NSSO) of India to provide information on the labour force and employment situation in the country.
  • The survey is conducted annually in all the states and union territories of India.
  • The PLFS provides data on various employment indicators, including the labour force participation rate (LFPR), unemployment rate (UR), worker population ratio (WPR), and employment by industry and occupation.
  • The PLFS sheds light on the proportion of individuals seeking employment, the unemployment rate, gender disparities in employment and wages, and the sectoral distribution of workers.
  • Additionally, it details the types of employment, such as casual labour, self-employment, and regular salaried jobs.
  • This comprehensive data is crucial for understanding the dynamics of the Indian labour market and formulating effective employment strategies.
 
3. Data Collection Methods in PLFS
  • The Periodic Labour Force Survey (PLFS) collects employment data using two methods: Usual Status (US) and Current Weekly Status (CWS).
  • In the US method, respondents are asked to recall their employment details for the past year, while in the CWS method, they are asked to recall their employment details for the past week.
  • The labour force estimate derived from the US method includes individuals who worked or were seeking/available for work for a significant portion of the past year, as well as those who worked for at least 30 days during the reference period.
  • Conversely, the labour force estimate based on the CWS method encompasses those who worked for at least one hour or sought/were available for work for at least one hour on any day during the past week.
  • The global trend has shifted towards a greater emphasis on CWS data due to the improved accuracy of recall for shorter reference periods. 


4. Latest findings of the Report

Unemployment Rate (UER)

  • The UER is often the most talked about metric in popular discourse. Simply put, it refers to the proportion of people who demanded work over the past year and failed to get it.
  • As the data in Table 1 shows, for the population above 15 years of age, the UER has fallen significantly from 6.6% to 5.1% over the last year (that is, July to June cycle).
  • Simply put, 5.1% of all the people above 15 years of age who demanded work failed to get one. 

Labour Force Participation Rate (LFPR)

  • The Unemployment Rate (UER) is calculated as a proportion of the population that is demanding work.
  • However, this population also fluctuates for various reasons. The Labor Force Participation Rate (LFPR) is a measure of the total population demanding work, expressed as a proportion of the total population above 15 years of age.
  • As seen in Table 1, India's LFPR, which had been gradually increasing, has experienced a significant surge in the past year.
  • As of 2022-23, 54.6% of all Indians above the age of 15 were actively seeking employment.
 

LFPR for women

  • This metric looks at LFPR among women to ascertain where the additional demand for jobs is coming from.
  • The data shows that female LFPR has gone up over the years but there were two discrete step-ups one in 2019-20 (when India’s GDP growth rate had slowed down to less than 4% and this was before the Covid pandemic hit) and the second in 2022-23 when it rose to 31.6%.

Worker Population Rate
  • Since the proportion of people demanding work (the LFPR) goes up and down and the percentage of those failing to get a job (the UER) is expressed as a proportion of the former, it can throw off analysis.
  • As such, there is another way to look at the labour market: Worker Population Ratio (WPR).
  • The WPR is the percentage of persons employed among the persons in the population.
  • Thus, instead of looking at how many demand a job and how many fail to get it, the WPR simply gives a measure of how many people have a job as a proportion of the total population.
  • This metric too has been going up and especially noteworthy are the two discrete
    step-ups in 2019-20 and 2022-23.

WPR among women

This metric throws light on the WPR for women to understand what’s leading to the spike in overall WPR. Again, the WPR for women has been going up but two main spikes have been in 2019-20 and 2022-23.

Monthly earnings

The PLFS reports also provide a sense of how much people earn in different types of jobs.
While it is true that incomes have broadly gone up after falling during Covid the main takeaway from this data emerges when one compares how little have monthly incomes changed over the past 6 years, especially in the face of a sharp rise in inflation. To be sure, since late 2019, annual consumer inflation has always been above the RBI’s target of 4%.
 

Distribution of workers

To accurately make sense of more and more people working, it is important to know not just what they earn but also what kind of work they do. For this, we look at data collected over the usual status by PLFS. Table 3 alongside gives the details of the three main classifications: self-employment, casual labour (say a construction worker) and regular salaried job. Self-employed has two sub-categories:
(i) own account worker and employer and
(ii) unpaid helper in household enterprises. 
 
The data shows that self-employment has risen and jobs in the other two categories have fallen in proportion. It is also noteworthy that self-employment among women is the key driver for this overall trend. 
 

5. Key Trends in PLFS 2022-23

  • Upon initial analysis, the Periodic Labour Force Survey (PLFS) for 2022-23 reveals several encouraging trends. The unemployment rate is on a downward trajectory, and both the Labor Force Participation Rate (LFPR) and Workforce Participation Rate (WPR) exhibit substantial increases. A particularly heartening development is the notable rise in the participation of women in the workforce. This suggests a positive correlation between economic recovery and the creation of more employment opportunities, especially for women.
  • However, a closer examination of the nature and remuneration of these new jobs alters the understanding. The predominant trend is the emergence of jobs falling under the category of "self-employment." Typically, in a growing economy, businesses tend to hire more employees. Conversely, during economic challenges, individuals often transition from regular employment to "self-employed" status. This nuanced perspective prompts a reconsideration of the quality and sustainability of the employment being generated.
  • Analyzing the trends among women across various metrics reveals an interesting dynamic. The data suggests that economic strains on household finances have led more women, previously outside the workforce, to join in. However, a noteworthy observation is the prevalence of women taking up roles as "unpaid helpers in household enterprises," highlighting a complex interplay between economic conditions and women's workforce participation.
  • Furthermore, an examination of the sectoral landscape indicates a regressive shift in India's employment patterns. Notably, there has been an increase in the proportion of Indians employed in agriculture over the past year, while the numbers in manufacturing have witnessed a decline. This shift underscores the evolving economic dynamics and sectoral preferences shaping the employment scenario.
  • In a thriving economy, one would expect an improvement in monthly incomes. However, the Indian scenario deviates from this expectation. Despite positive indicators in other areas, the data suggests that the overall economic boom is not translating into significant improvements in monthly incomes for individuals in India. This anomaly prompts a closer examination of the factors contributing to this divergence.

6. The WayForward

While there are positive signals in the headline indicators, a more nuanced analysis reveals complexities like job creation, women's participation dynamics, sectoral shifts, and income patterns. This holistic perspective is essential for a comprehensive understanding of the multifaceted impact of economic trends on the labour market in India.

 
For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)

 

Previous Year Questions

1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
 
 
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only       B. 1 and 2 only            C. 1 and 3 only           D. 1, 2 and 3
 
 
3. Disguised unemployment generally means (UPSC 2013)

(a) large number of people remain unemployed
(b) alternative employment is not available
(c) marginal productivity of labour is zero
(d) productivity of workers is low

 

4.  Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries.

Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio.

Choose the correct answer: (Telangana Police SI Mains 2018)

A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).

Answers: 1-C, 2-B, 3-C, 4-D

Mains

1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023)

Source: The Indian Express

POCSO ACT

 

1. Context

Calcutta High Court directs police to add Sections of POCSO Act and produce the accused before the special court; violence had erupted after body of girl was found in South 24 Parganas district; family members allege that they were made to run around initially, and say the child could have been saved if the police had taken action in time

2. Development of Legislation Against Child Sexual Abuse in India

Constitutional Provisions and International Commitments
  • The Constitution of India includes provisions to protect children's rights.
  • India has ratified international instruments like the Convention on the Rights of the Child and the Protocol on the Sale of Children.
Lack of Dedicated Provision
  • India lacked specific legislation addressing child sexual abuse.
  • Cases were tried under various provisions of the Indian Penal Code, which were deemed insufficient.
Goa Incident and State-Level Response
  • A child sexual abuse racket was exposed in Goa during the 1990s.
  • The state government responded by enacting a law in 2003 to promote child rights.
Children's Code Bill, 2000
  • The Special Expert Committee under Justice VR Krishna Iyer drafted the Children's Code Bill, presenting a comprehensive framework for child rights in India.
Draft Bill Addressing Offences Against Children
  • In 2005, the Department of Women and Child Development prepared a draft bill to address different offenses targeted against children.
Study of Child Abuse Report (2007)
  • Published by the Ministry of Women and Child Development.
  • Covered 13 states with a sample size of 12,447 children, 2,324 young adults, and 2,449 stakeholders.
  • Found that 50.76% of children surveyed reported experiencing one or more forms of sexual abuse.
  • Boys reported a higher overall percentage of sexual abuse than girls, contrary to prevailing perceptions.
Protection of Children from Sexual Offences (POCSO) Bill, 2010
  • In September 2010, the Ministry of Women and Child Development prepared a draft bill.
  • After several revisions, it came into force as the POCSO Act on Children's Day (November 14, 2012).

3. Analysis of POCSO Act Trials and Case Characteristics

  • Acquittals and Convictions: Analysis shows that 43.44% of trials under the POCSO Act end in acquittals, while only 14.03% end in convictions. For every one conviction, there are three acquittals, indicating a significant disparity.
  • State-wise Disparity in Acquittals and Convictions: Acquittals are significantly higher than convictions in all states studied. Examples: In Andhra Pradesh, acquittals are seven times more than convictions, and in West Bengal, acquittals are five times more than convictions. Kerala has a relatively lower gap, with acquittals constituting 20.5% and convictions constituting 16.49% of total disposals.
  • Relationship Between Victim and Accused: Out of 138 examined judgments, only 6% of cases involved accused who were strangers to the victim. In 44% of cases, the relationship between the victim and accused was unidentified. Known acquaintances constituted 22.9% of the accused, family members accounted for 3.7%, and cases with prior romantic relationships made up 18%.
  • Age Distribution of Victims and Accused: Among the 138 cases studied, 5.47% of victims were under 10 years, 17.8% were between 10-15 years, and 28% were between 15-18 years. The age of the victim was unidentified in 48% of cases. Age details of accused individuals were not identified in 63.6% of cases. Identified age ranges of accused: 11.6% between 19-25 years, 10.9% between 25-35 years, 6.1% between 35-45 years, and 6.8% above 45 years.
  • Offenses and Severity: Penetrative sexual assault (31.18%) and aggravated penetrative sexual assault (25.59%) collectively account for over half of all POCSO cases. These offenses carry the most stringent punishments under the POCSO Act.

4. Analysis of POCSO Case Disposal and Pendency

  • Delayed Disposal: On average, it takes 509.78 days for a POCSO case to be disposed of, exceeding the one-year stipulated timeframe under the Act.
  • Increase in Pending Cases: The pendency of POCSO cases had been gradually increasing over the years. Notably, there was a sharp rise in pending cases between 2019 and 2020, attributed to the impact of the COVID-19 pandemic.
  • Reasons for Delay: Slow pace of police investigation and delays in depositing samples with Forensic Science Laboratories were identified as primary reasons for case delays.
  • Transfers of Cases: 22.76% of cases were disposed of through transfers from one court to another. One-fifth of the cases in the dataset ended in transfers, indicating administrative mismanagement or wrongful appreciation of facts by the police.
  • Increasing Transfer Trend: The percentage of transfers out of total disposals was around 8% in 2013 but rose to a little over 19% in 2019 and a concerning 42% in 2020. This trend is seen as problematic due to the time wasted as cases are transferred between courts.

5. POCSO Trials and Case Statistics in India

  • Delhi's POCSO Trials and Case Length: Delhi has the highest number of POCSO trials in the country, with 13.54 cases per 100,000 population in 2018. However, Delhi also had the highest average case length in 2020, at 1,284.33 days.
  • Average Time for Convictions: Chandigarh and West Bengal are the only states where the average time taken for convictions is within one year. States like Chhattisgarh, Haryana, Kerala, Sikkim, Chandigarh, and the NCT of Delhi have a higher reporting of POCSO cases.
  • Districts with the Highest Number of POCSO Trials: The five districts with the highest number of POCSO trials (pending and disposed of) are Namchi (Sikkim), New Delhi, Central Delhi, Medak (Telangana), and West Garo Hills (Meghalaya).
  • Pendency and Disposal Rates: Uttar Pradesh has the highest pendency, with 77.77% of the total POCSO cases filed between November 2012 and February 2021 pending. Tamil Nadu has the highest disposal percentage at 80.2%.
  • Districts with Highest Pendency Percentages: The five districts with the highest pendency percentages include Lucknow, Hardoi, Budaun, and Allahabad in Uttar Pradesh and Howrah in West Bengal.

6. Gaps in Implementation

  • Absence of Support Persons: According to the study, "support persons" are not appointed in most POCSO cases. The Supreme Court highlighted that in 96% of cases, victims were not provided with a support person.
  • Role of support Persons: A support person can be an individual or organization working in child rights or protection, an official from a children's home or shelter home. or a staff member of the District Child Protection Unit (DCPU). Their role is to guide and support the victim throughout the legal process.
  • Insufficient Designated POCSO Courts: The analysis reveals that not all districts have designated POCSO courts. As of 2022, 408 POCSO courts have been established in 28 states under the Government's Fast Track Special Court Scheme.
  • Lack of Special Public Prosecutors: There is a shortage of special public prosecutors specifically appointed to handle POCSO cases. Even when appointed, they are often engaged in non-POCSO cases, leading to a lack of dedicated focus on POCSO matters.
For Prelims: Protection of Children from Sexual Offences (POCSO), Convention on the Rights of the Child, and the Protocol on the Sale of Children, Children's Code Bill, 2000,  Child Abuse Report (2007). 
For Mains: 1. Critically analyze the findings of the analysis on convictions, acquittals, victim-accused relationships, and offense patterns in POCSO cases in India. (250 words).

Previous year Question

1. In India, the Protection of Children from Sexual Offences (POCSO) Act, ____ is a comprehensive law to provide for the protection of children from the offenses of sexual assault, sexual harassment, and pornography, while safeguarding the interests of the child. (SSC CGL 2021)
A.2012
B. 2006
C. 2010
D. 2008
Answer: A
 
Source: The Indian Express
 

INSOLVENCY AND BANKRUPTCY CODE (IBC)

 
 

1. Context

India’s G20 Sherpa Amitabh Kant’s call for reforms in India’s insolvency resolution framework to cut delays and boost creditor recovery is latest in the growing chorus for making the Insolvency and Bankruptcy Code more effective. 

2. About Insolvency and Bankruptcy Code (IBC)

2.1.Insolvency: Insolvency is a situation where individuals or companies cannot repay their debt.

2.2.Bankruptcy: It is a situation whereby a court of competent jurisdiction has declared a person or other entity insolvent, having passed appropriate orders to resolve it and protect the rights of the creditors.

IBC was introduced in 2016 to consolidate previously available laws to create a time-bound mechanism with a creditor-in-control model as opposed to the debtor-in-possession system. When insolvency is triggered under the IBC, there can be just two outcomes: Resolution or Liquidation, with the former being the preferred solution.

Companies have to complete the entire insolvency exercise within 180 days under IBC and the deadline may be extended if the creditors do not raise objections to the extension.

3. CHALLENGES FOR THE IBC:

  • Insolvency Bankruptcy Board of India is the regulator of the Insolvency and Bankruptcy Code in India. According to its regulator, IBBI the first objective of the IBC is a resolution-finding way to save a business through restructuring, change in ownership, mergers, etc.
  • The second objective is to maximize the value of assets of the corporate debtor; the third objective is to promote entrepreneurship, availability of credit, and balancing of interests.
  • According to Insolvency Bankruptcy Board of India data for the 3400 cases admitted under the IBC in the last six years, more than 50% of the cases ended in liquidation, and only 14% could find a proper resolution.
  • The IBC was thus initially given a 180-day deadline to complete the resolution process, with a permitted 90-day extension. It was later amended to make the total timeline for completion 330 days which is almost a year.
  • However, in the financial year 2022, it took 772 days to resolve cases involving companies that owed more than 1000 crores. The average number of days it took to resolve such cases increased rapidly over the past five years.

4. IBC 2016 Advantages

Strict timelines:

  1. Normal cases: 180 days
  2. Complex cases: 180 days +90 days
  3. Legal proceedings: 330 days
  4. In the case of tardy legal proceedings, it can go beyond 330 days.
  5. It promotes entrepreneurship, the release of capital that can be invested in other productive assets.
  6. It focuses more on resolution rather than liquidation.
  7. In only 15% of cases, the resolution is done, and the rest is liquidation.

5. Expert’s opinion on IBC:

  • In order to address the delays, the parliamentary standing committee suggested that the time taken to admit the insolvency application and transfer control of the company to a resolution process, should not be more than 30 days after filing.
  • The IBBI has also called for a new yardstick to measure haircuts. It suggested that haircuts cannot be looked at as the difference between the creditors’ claims and the actual almost realized but as the difference between what the companies bring along when it enters IBC and the value realized.

6. INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) BILL, 2021

  • The insolvency and bankruptcy code (Amendment) Bill, 2021 was introduced in the Lok-Sabha to amend the insolvency law and provide for a pre-packaged resolution process for stressed Micro, Small, and Medium Enterprises.
  • Under this mechanism, main stakeholders such as creditors and shareholders come together to identify a prospective buyer and negotiate instead of a public bidding process.
  • The insolvency and bankruptcy are applicable to defaults which is more than Rs.1crore. There has been a recent change in IBC, which is called the Pre-Pack mechanism for MSMEs.

6.1 Pre-Pack Mechanism:

  • If an MSME takes a loan and the default is less than 1 crore, then this Pre-Pack mechanism will be applicable.
  • Under this mechanism, the owner of the MSMEs will propose or submit a resolution plan to NCLT (National Company Law Tribunal). Outside bidders and open bidding will not be done.
  • During this resolution, the management of MSMEs will remain with the previous owners. Under this mechanism, the process will be completed within 120 days.

7. CONCLUSION:

The Insolvency and Bankruptcy Code has reformed the Indian Insolvency Law to a great extent. The government needs to provide appropriate budgetary allocations to up skilling insolvency professionals and digitization of insolvency resolution process.

There has been a marked improvement in the recovery process which is already leading to billions of dollars being invested in the country due to the protection of creditor rights.

Prelims question:

1. According to the IBC, which of the following is not a financial service
A.Underwriting issuance of financial support
B.Accepting of deposits
C.Operating an investment scheme
D.Payment of wages to the Employees

Mains questions:

  1. What is Insolvency Bankruptcy Code and what are its challenges?
  2. Critically analyze the progress made in resolving stressed assets since the enactment of IBC?
  3. Do you think the insolvency and bankruptcy code has reformed the Indian insolvency law? Justify your answer.
 
 

Source: The Hindu

SHANGHAI COOPERATION ORGANISATION

 

1. Context

A day after the government announced that External Affairs Minister S Jaishankar will lead the Indian delegation to Pakistan for a meeting of the Shanghai Cooperation Organisation’s Council of Heads of Government on October 15-16, the Minister said he wasn’t going there to discuss India-Pakistan relations but for a “multilateral event”
 

2. About Shanghai Cooperation Organisation

  • The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, international security and defence organisation.
  • It is the world's largest regional organization in terms of geographic scope and population, covering approximately 60% of the area of Eurasia, and 40% of the world's population. Its combined GDP is around 20% of global GDP.
  • The SCO was founded in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

2.1. Structure

The SCO has several bodies that oversee its activities, including

  • The Council of Heads of State, which is the supreme decision-making body of the SCO.
  • The Council of Heads of Government, which is responsible for overseeing the implementation of the decisions of the Council of Heads of State.
  • The Council of Foreign Ministers, which is responsible for coordinating the foreign policies of the SCO member states.
  • The Regional Anti-Terrorist Structure (RATS), which is responsible for combating terrorism, separatism and extremism in the SCO region and
  • The SCO Secretariat, which is responsible for the day-to-day running of the organization.

2.2. Members

  • The SCO has eight full members China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan. 
  • It also has six observer states Afghanistan, Belarus, Iran, Mongolia, Nepal and Sri Lanka.
  • And six dialogue partners Armenia, Azerbaijan, Cambodia, Egypt, Qatar and Saudi Arabia.
 

2.3. Goals 

  • Political and security cooperation, including the fight against terrorism, separatism and extremism
  • Economic cooperation, including trade, investment, energy and transportation
  • Cultural and humanitarian cooperation and
  • Coordination of positions on major international issues.

3. Criticism

  • The SCO has been criticized by some for being a tool of Chinese and Russian imperialism.
  • However, the organization has also been praised for its role in promoting stability and security in Central Asia.

4. The Way Forward

  • The SCO has been expanding its membership in recent years, and it may continue to do so in the future.
  • The organization is seen by some as a potential rival to the North Atlantic Treaty Organization (NATO), and its growing influence is being watched closely by the United States and its allies.
 
For Prelims: SCO, NATO, India, Central Asia, United States, China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, terrorism, 
For Mains: 
1. Examine the potential challenges and opportunities for India as a full member of the SCO, highlighting its implications for India's political, economic, and security interests.  (250 Words)
 
 
Previous Year Questions
 
1. Shanghai Cooperation Organisation (SCO) Heads of State Summit was held on 10th November, 2020 in the video conference format. The Summit was hosted by: (OPSC OAS 2021) 
A. Russia               B. India               C. Kazakhstan             D.  Uzbekistan
 
Answer: A
 
2. The Summit of the Shanghai Cooperation Organisation (SCO) was hosted by which country from 15-16 September 2022? (Rajasthan CET 2023)
A. Kazakhstan         B.  Tajikistan        C.  Uzbekistan           D. India
 
Answer: C
 
3. The area known as 'Golan Heights' sometimes appears in the news in the context of the events related to  (UPSC  2015)
A. Central Asia          B. Middle East              C. South-East Asia          D. Central Africa
 
Answer: B
 
4. Siachen Glacier is situated to the (UPSC 2020) 
A. East of Aksai Chin       B. East of Leh         C. North of Gilgit       D. North of Nubra Valley
 
Answer: D
 
Source: SCO
 
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