Specific Concerns

• The PMLA's retrospective application, allowing for the prosecution of offences committed before the law's enactment, has been challenged as violative of the fundamental right against ex post facto laws.
• The PMLA places the burden of proof on the accused to establish innocence, a departure from the general principle of criminal law that presumes innocence until proven guilty.
• Critics argue that the PMLA's provisions are overly broad and draconian, giving the ED excessive powers to arrest, detain, and seize assets without adequate judicial oversight.
•  The PMLA's lack of adequate safeguards against arbitrary actions and misuse of power has raised concerns about the potential for abuse of authority by the ED.
•  The PMLA's provisions have been criticized for potentially infringing upon fundamental rights such as the right to personal liberty, the right to property, and the right against self-incrimination.

3. Money laundering

• Money laundering is the illegal process of making large amounts of money.
• This money is generated by criminal activity but may appear to come from a legitimate source.
• Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery and computer fraud schemes that produce large profits.

3.1. Different stages in money laundering

1. Placement: The crime money is injected into the formal financial system.
2. Layering: Money injected into the system is layered and spread over various transactions and book-keeping tricks to hide the source of origin.
3. Integration: Laundered money is withdrawn from the legitimate account to be used for criminal purposes. Now, Money enters the financial system in such a way that the original association with the crime is disassociated.  The money now can be used by the offender as legitimate money.

Money laundering can have a significant impact on economic development by:

• When money laundering occurs, it can undermine public confidence in banks and other financial institutions. This can lead to increased risk aversion and a decline in investment, which can hamper economic growth.
• Money laundering can distort economic activity by directing funds away from legitimate businesses and into criminal enterprises. This can lead to inefficient allocation of resources and slower economic growth.
• Money laundering can facilitate corruption by providing a means to conceal the proceeds of corrupt activities. This can weaken governance and undermine the rule of law, further hindering economic development.
• Money laundering can also lead to a loss of tax revenue, as criminals seek to evade taxes on their illicit gains. This can deprive governments of much-needed funds for essential services, such as education and healthcare.
• Money laundering is often used to finance organized crime groups, which can lead to an increase in violence and instability.
• Money laundering can also be used to finance terrorist activities, posing a serious threat to international security.
• Money laundering can also have a direct impact on individuals and businesses, who may lose money or be victims of fraud as a result of this crime.

The Prevention of Money-Laundering Act, 2002 (PMLA) is a comprehensive legislation enacted by the Indian Parliament to combat money laundering and other financial crimes. It aims to prevent the use of proceeds of crime, particularly those derived from drug trafficking, organized crime and corruption, from being laundered and utilized to finance further criminal activities or to gain legitimacy.

4.1. Key Features of the PMLA

• The PMLA prohibits the process of money laundering, defined as the act of concealing or disguising the proceeds of crime.
• The PMLA empowers the Enforcement Directorate (ED), the designated agency for investigating money laundering cases, to attach and seize property derived from or involved in money laundering.
• The PMLA provides for the confiscation of property that is involved in money laundering, even if it is not in the possession of the accused person.
• The PMLA grants the ED extensive powers to conduct searches, make arrests, and detain individuals suspected of money laundering.
• The PMLA facilitates international cooperation in combating money laundering through mutual legal assistance treaties and other mechanisms.

4.2. Significance of the PMLA

The PMLA has played a crucial role in strengthening India's anti-money laundering framework and enhancing its global standing in combating financial crimes. It has enabled the investigation and prosecution of numerous money laundering cases, leading to the recovery of substantial illicit funds.

4.3. Challenges in Implementing the PMLA

Despite its significance, the implementation of the PMLA has faced certain challenges, including:

• The PMLA and other laws, such as the Narcotics Drugs and Psychotropic Substances Act, have overlapping jurisdictions, which can lead to confusion and delays in investigations.
• There have been concerns about the lack of adequate safeguards against arbitrary actions and misuse of power under the PMLA.
• The ED faces resource constraints in terms of manpower and infrastructure, which can hamper its ability to effectively investigate and prosecute money laundering cases.

• The Directorate of Enforcement (ED) is an agency in India that primarily deals with the enforcement of economic laws and regulations to combat money laundering, foreign exchange violations, and financial fraud.
• The ED is part of the Department of Revenue under the Ministry of Finance, Government of India.
• The Directorate of Enforcement was established on 1st May 1956, as the "Enforcement Unit" within the Department of Economic Affairs.
• Its primary focus was on preventing and detecting violations of the Foreign Exchange Regulation Act (FERA) of 1947.
• Over the years, the agency's role expanded, and in 1999, the Enforcement Directorate was established as a separate entity under the Ministry of Finance.
• The enactment of the Prevention of Money Laundering Act (PMLA) in 2002 further broadened its jurisdiction, giving it the power to investigate cases related to money laundering.
• Since its establishment, the ED has played a crucial role in combating economic offences and ensuring compliance with economic laws in India.
• It has been involved in several high-profile cases, including those related to financial scams, money laundering by influential individuals, and cross-border financial crimes.
• The ED collaborates with various domestic and international agencies, including financial intelligence units, law enforcement agencies, and Interpol, to gather information, share intelligence, and effectively coordinate efforts to combat economic offences.

5.1. Functions and Roles of ED

• Enforcing Economic Laws: The primary function of the ED is to enforce two key economic laws in India: the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). It ensures compliance with these laws and investigates money laundering, foreign exchange violations, and economic fraud cases.
• Money Laundering Investigations: The ED investigates cases involving money laundering, which is the process of concealing the origins of illegally obtained money to make it appear legitimate. It identifies and seizes properties and assets derived from illicit activities and prevents their further use.
• Foreign Exchange Violations: The ED is responsible for investigating cases related to violations of foreign exchange laws and regulations. It monitors and controls foreign exchange transactions to maintain the stability of the Indian rupee and prevent illegal activities such as smuggling and illegal money transfers.
• Financial Frauds: The ED also investigates and takes action against financial frauds, including bank frauds, Ponzi schemes, and other fraudulent activities affecting the Indian financial system. It works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI), to tackle complex financial crimes.

 

PRIVATE MEMBER BILL

 

 

1.Context

Private Member’s Bills (PMBs) are a mechanism through which Members of Parliament (MP), who are not Ministers, can propose their own legislation. In India’s parliamentary system, most laws are introduced by the government, drafted by Ministries and tabled by Ministers

2.The procedure of Bills introducing in the Parliament 

 

In India, the procedure for introducing and passing bills in Parliament involves several stages. Here's a detailed overview of the process:

 

Introduction of the Bill:

• Types of Bills: Bills can be categorized into different types such as Ordinary Bills, Money Bills, and Financial Bills.

  • Ordinary Bills: These deal with subjects other than financial matters.
  • Money Bills: These deal exclusively with financial matters like taxation and government expenditure.
  • Financial Bills: These include provisions related to money but not exclusively confined to financial matters.

• First Reading: The bill is introduced in either House of Parliament (Lok Sabha or Rajya Sabha). This is known as the First Reading. The bill's title and general objectives are read out, and a copy is distributed to members. There is no debate at this stage.

• Second Reading: The bill is debated in detail during the Second Reading. Members discuss the general principles and purpose of the bill. After the debate, a vote is taken to decide whether the bill should proceed to the Committee Stage
• Final Step: Once both Houses agree on the final version of the bill, it is sent to the President for assent. The President can:
  • Give Assent: The bill becomes law.
  • Withhold Assent: The bill is sent back to Parliament with a request for reconsideration.
  • Refuse Assent: If the bill is not passed again by Parliament after reconsideration, it does not become law.

3. What is a Private Member Mill?

A Private Member’s Bill is a type of legislation introduced in Parliament by a member who is not part of the government. Unlike Government Bills, which are introduced and sponsored by ministers, Private Member’s Bills are introduced by Members of Parliament (MPs) or Members of the Legislative Assembly (MLAs) who are not holding any ministerial office.

Key Features of a Private Member’s Bill:

• Introduced by Non-Government Members: It is introduced by a member who is not part of the government, typically from the opposition or from a smaller party or independent members.

• Purpose: Private Member’s Bills often address issues or propose reforms that are not on the government’s agenda. They can cover a wide range of topics including social, economic, and legal issues.

• Process:

  • Introduction: The bill is introduced in either House of Parliament (Lok Sabha or Rajya Sabha) and is read out. This stage is known as the First Reading.
  • Debate: The bill is then debated in detail during the Second Reading. Members discuss its principles and objectives.
  • Committee Stage: The bill is referred to a Committee for a detailed examination and possible amendments.
  • Report Stage: The Committee reports back to the House, and further amendments can be discussed and voted upon.
  • Third Reading: The final version of the bill is debated, and a vote is taken.

• Approval: If the bill passes all stages in the House where it was introduced, it is sent to the other House for consideration. Both Houses must agree on the final version.

• Presidential Assent: After passing both Houses, the bill is sent to the President for assent. Once the President gives assent, the bill becomes law.

Example A Private Member’s Bill might address issues like environmental protection, social justice, or legal reforms. For instance, it could propose changes to existing laws, suggest new regulations, or address gaps in current legislation. Overall, Private Member’s Bills provide a platform for non-government members to contribute to the legislative process and advocate for various causes and reforms

4.Reference of Bills to Departmentally Related Standing Committees

 

• The year 1993 opened the way for new technology in the records of the Indian Parliament when Departmentally Related Standing Committees had been constituted.
• The quantity of Standing Committees has now been improved from 17 to 24.
• While eight committees work below the path of the Chairman of Rajya Sabha, Sixteen Committees work below the course of the Speaker of the Lok Sabha.
• One of the essential features of these Committees is to observe such Bills added in either House as are referred to them using the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as the case may additionally be and make a document thereon.
• The reviews of the Standing Committees have persuasive value.
•  In case the Government accepts any of the recommendations of the Committee, it may bring forward official amendments at the consideration stage of the Bill or may withdraw the Bill reported by the Standing Committee and bring forward a new Bill after incorporating the recommendations of the Standing Committee.

5.Bills Before a Select or Joint Committee

• When a Bill is referred to a Select or Joint Committee, the committee examines it clause-by-clause, similar to the procedure followed in the House. Committee members have the opportunity to propose amendments to various clauses of the Bill.
• Once the Select or Joint Committee presents its report to the House, the member responsible for the Bill usually moves a motion for the House to consider the Bill as reported by the committee.
• However, a Money Bill or a Financial Bill that qualifies as a Money Bill cannot be sent to a Joint Committee of both Houses.

6.Restrictions on Introducing Certain Bills in Rajya Sabha

• Bills can be introduced in either House of Parliament, but a Money Bill cannot be introduced in the Rajya Sabha.
• It must be introduced in the Lok Sabha with the President's prior recommendation. If there is any doubt about whether a Bill is a Money Bill, the Speaker's decision is final.
• The Rajya Sabha must return a Money Bill passed by the Lok Sabha within 14 days. It can return the Bill with or without recommendations, and the Lok Sabha may choose to accept or reject these recommendations.
• If the Rajya Sabha fails to return the Money Bill within 14 days, the Bill is considered passed by both Houses in the form it was originally approved by the Lok Sabha.
• Similarly, Bills containing provisions related to matters specified in Article 110(1)(a) to (f) cannot be introduced in the Rajya Sabha. They can only be introduced in the Lok Sabha with the President's recommendation. However, the restrictions applicable to Money Bills do not apply to these Bills

7.Constitution Amendment Bills

Parliament has the authority to amend the Constitution. Constitution Amendment Bills can be introduced in either House. The motion for introducing such Bills requires a simple majority, but passing the Bills requires a majority of the total membership and at least two-thirds of the members present and voting. For Bills affecting critical issues under Article 368(2) of the Constitution, ratification by at least half of the State Legislatures is also necessary after being passed by both Houses.

Joint Sitting

According to Article 108(1) of the Constitution, if a Bill (excluding Money Bills and Constitution Amendment Bills) is rejected by one House or if there is a disagreement on amendments, or if more than six months pass without the Bill being passed, the President may notify the Houses of his intention to summon a Joint Sitting. The Joint Sitting is regulated by the Houses of Parliament (Joint Sittings and Communications) Rules, established under Article 118(3). There have been three instances where Bills were considered and passed during a Joint Sitting of Parliament.

Assent to Bills

Once a Bill is passed by both Houses, it is sent to the President for assent. The President may either assent to the Bill, withhold assent, or return it (if it is not a Money Bill) with a request for reconsideration or suggested amendments. The President must either assent to or withhold assent for a Money Bill, but cannot return it for reconsideration. For Constitution Amendment Bills, the President is obligated to give assent if the Bill has been passed by Parliament with the required special majority and ratified by the necessary number of State Legislatures

8.Difference between Private Member Bill and Public Bill

 

Private Member Bill	Public Bill
It can be introduced by any member of the Parliament other than the Minister.	It can be introduced by the Minister.
Lesser chance of approval	Greater chance of approval
Rejection of the bill is no impact on the government's position.	Expression of want of parliamentary confidence in the government may lead to its resignation.
The Notice period for introduction is one month.	The Notice period for introduction is seven days.
The member who is introducing it will only draft the Bill.	Drafting of the Bill is concerned Department in consultation with the law department.
It Reflects the Stand of the Opposition party on Public matters.	It reflects the policies of the government (Ruling party).

It can only be introduced and debated on Fridays.

It can be introduced and debated on any day.

 

 

For Prelims: Private bill, Finance Bill, Money Bill For Mains: GS II - Indian Polity  & Governance

Previous Year Questions   1.Regarding Money Bill, which of the following statements is not correct? (UPSC 2018) 1.  A bill shall be deemed to be a money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax. 2. A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India. 3. A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India. 4. A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India. Answer (3)

Source: Lok Sabha

 

 

HYDROGEN AS A FUEL

 

 

 

 

1. Context

 

For India, an economy in growth mode with aspirations for energy independence and a pledge to reach net-zero emissions by 2070, the exploitation and use of natural hydrogen offers a potentially game-changing opportunity. In an increasingly volatile world where national sovereignty, economic stability, and energy security become inseparable, tapping into this naturally occurring commodity could go a long way toward enhancing India’s strategic autonomy.

 

 

2. How Does a Hydrogen Fuel Cell Work?

 

• Fuel cell electric vehicles (FCEVs) rely on a critical component known as the hydrogen fuel cell.
• This device harnesses the potential of hydrogen as a fuel source and an oxidant to produce electricity through an electrochemical process.
• Essentially, the fuel cell combines hydrogen and oxygen, resulting in the generation of an electric current, with water being the sole byproduct.
• Much like conventional batteries found in automobiles, hydrogen fuel cells convert chemical energy into electrical energy.
• From a long-term sustainability perspective, FCEVs are positioned as the vehicles of the future, primarily due to hydrogen's status as the most abundant resource in the universe.

 

3. Is a Fuel Cell Electric Vehicle (FCEV) a Conventional Vehicle or an Electric Vehicle (EV)?

While fuel cells generate electricity through an electrochemical process, they do not store energy like a battery-electric vehicle. Instead, they rely on a continuous supply of fuel and oxygen, similar to how an internal combustion engine depends on a constant supply of petrol or diesel and oxygen. This similarity to conventional vehicles is further emphasized by the absence of moving parts in the fuel cell, making them more efficient and reliable. Additionally, there is no combustion on board in the traditional sense.

Globally, electric vehicles (EVs) are categorized into three main types:

• Battery Electric Vehicles (BEVs): These vehicles, like the Nissan Leaf or Tesla Model S, do not have an internal combustion engine or fuel tank. They operate solely on a fully electric drivetrain powered by rechargeable batteries.
• Conventional Hybrid Electric Vehicles (HEVs): Examples include the Toyota Camry. These vehicles combine a conventional internal combustion engine with an electric propulsion system, resulting in a hybrid drivetrain that significantly reduces fuel use. The onboard battery in a conventional hybrid is charged when the internal combustion engine is powering the drivetrain.
• Plug-in Hybrid Electric Vehicles (PHEVs): Examples include the Chevrolet Volt. These vehicles also have a hybrid drivetrain that uses both an internal combustion engine and electric power for motive power. They are backed by rechargeable batteries that can be plugged into a power source.

Fuel Cell Electric Vehicles (FCEVs), such as Toyota's Mirai and Honda's Clarity, use hydrogen to power an onboard electric motor. While they are powered entirely by electricity, FCEVs are considered EVs. However, unlike BEVs, their range and refuelling processes are comparable to those of conventional cars and trucks.

 

4. Applications of Hydrogen Fuel Cell Technology

• The market for hydrogen fuel cell vehicles is primarily led by Japan's Toyota and Honda, alongside South Korea's Hyundai.
• The successful development of hydrogen fuel cells presents opportunities for energy in transportation and electric power, with a key advantage being the widespread availability of resources for producing hydrogen.
• Japan's Ministry of Economy, Trade, and Industry (METI) published a 'Strategic Roadmap for Hydrogen and Fuel Cells' in 2014, with a revised update in March 2016, aiming to achieve a hydrogen society.
• Stationary fuel cells, which are the largest and most powerful fuel cells, are being designed to provide a cleaner and more reliable source of on-site power to hospitals, banks, airports, and homes.
• A fuel cell can continue to produce energy as long as fuel and oxidant are supplied. Portable fuel cells could also find applications beyond vehicles.
• Fuel cell electric vehicles are the most user-friendly zero-emission solution in Norway. The necessary infrastructure, securing several zero-emission alternatives to choose from, and meeting the demand for H2 fuel conveniently at the lowest possible cost for the consumer.

 

5. Advantages and Disadvantages of Fuel Cells

Advantages

• Reduced Greenhouse Gas Emissions: Fuel cells produce significantly fewer greenhouse gases compared to conventional combustion-based technologies used in power plants and cars.
• Zero Air Pollutants: They do not emit air pollutants that cause health problems.
• Clean Byproducts: When pure hydrogen is used, fuel cells emit only heat and water as byproducts.
• High Energy Efficiency: Fuel cells are more energy efficient than traditional combustion technologies.
• No Need for Charging: Unlike battery-powered electric vehicles, fuel cell vehicles do not need to be plugged in. Most models exceed 300 km of range on a full tank and can be refuelled with a nozzle, similar to petrol or diesel stations.

Disadvantages

• Energy Intensive Production: The process of making hydrogen often requires energy from fossil fuel sources, raising questions about hydrogen's green credentials.
• Safety Concerns: Hydrogen is more explosive than petrol, although modern fuel cell vehicles use highly durable carbon fibre tanks that undergo rigorous safety testing.
• Cost: Fuel cell vehicles are currently expensive, and fuel dispensing pumps are scarce. However, this is expected to improve with scale and distribution.
• Infrastructure Challenges: The availability of hydrogen fueling stations is limited, which can be a barrier to widespread adoption.
• Cost of Hydrogen Production: Reducing the cost of hydrogen production to make it cheaper than natural gas is a significant challenge that needs to be addressed.

Japan is investing heavily in fuel cell technology, aiming to reduce costs and improve infrastructure to make hydrogen fuel cells a viable and environmentally friendly alternative to traditional combustion engines.

 

6. Progress in India with Hydrogen Fuel Cell Technology

• In India, the current definition of electric vehicles (EVs) only includes battery electric vehicles (BEVs). The government has reduced taxes on EVs to 12%. However, hybrid electric vehicles and hydrogen fuel cell electric vehicles (FCEVs) are taxed at 43%, the same rate as internal combustion (IC) vehicles.
• Under the Research, Development, and Demonstration (RD&D) program of the Ministry of New and Renewable Energy, various projects related to hydrogen and fuel cells are being supported. Currently, 14 RD&D projects are under implementation, with eight projects sanctioned and 18 completed between 2016-17 and 2018-19.
• The Ministry of Science and Technology has also supported two networked centres focused on hydrogen storage. These centres are led by IIT Bombay and the Nonferrous Materials Technology Development Centre in Hyderabad, involving 10 institutions, including IITs and IISc Bangalore.

 

7. The Way Forward

 

By addressing the challenges and proactively implementing the proposed solutions, India can pave the way for a future powered by clean and sustainable hydrogen fuel cells. The success of India's first hydrogen fuel cell ferry serves as a stepping stone, but significant efforts are needed to transform this technology into a mainstream solution for a cleaner tomorrow.

 

 

For Prelims: hydrogen fuel cell, Inland Waterways Authority of India, Fuel cell electric vehicles For Mains:  1. Explain the operation of hydrogen fuel cells and their role in fuel cell electric vehicles (FCEVs), comparing them to conventional internal combustion engine vehicles and battery electric vehicles (BEVs). (250 Words) 2. Discuss the potential impact of hydrogen fuel cell technology on India's energy security, environmental sustainability, and economic development, considering its role in reducing greenhouse gas emissions and promoting clean energy solutions. (250 Words)

 

Previous Year Questions   1. With reference to 'fuel cells' in which hydrogen-rich fuel and oxygen are used to generate electricity, consider the following statements: (UPSC 2015) 1. If pure hydrogen is used as a fuel, the fuel cell emits heat and water as by-products. 2. Fuel cells can be used for powering buildings and not for small devices like laptop computers. 3. Fuel cells produce electricity in the form of Alternating Current (AC) 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     2. With reference to green hydrogen, consider the following statements: (UPSC 2023) 1. It can be used directly as a fuel for internal combustion. 2. It can be blended with natural gas and used as fuel for heat or power generation. 3. It can be used in the hydrogen fuel cell to run vehicles. How many of the above statements are correct? A. Only one      B. Only two        C. All three      D. None     3. As per Inland Waterways Authority of India, what is the approximate total length of navigable Inland waterways of India? (NTPC 2021)  A. 12400 km       B. 15600 km       C. 13600 km       D. 14500 km   Answers: 1-A, 2-C, 3-D

 

Source: The Indian Express