03-April-2024-Daily-Current-Affairs

ED CAN SUMMON ANYONE FOR ‘ANY INFORMATION’: SC

TOPIC: (GS2) POLITY AND GOVERNANCE– SOURCE: THE HINDU

The Supreme Court directed four Tamil Nadu District Collectors to personally appear before the Enforcement Directorate, criticizing them for ignoring the ED summons, stating they lacked respect for the law, court, and Constitution.

Enforcement directorate:

• Established in 1956 as an ‘Enforcement Unit’ under the Department of Economic Affairs, renamed ‘Enforcement Directorate’ in 1957.
• Presently under the administrative control of the Department of Revenue, which falls under the Ministry of Finance.

Functions:

• Responsible for enforcing the provisions of the Foreign Exchange Management Act, 1999 (FEMA), and particular segments of the Prevention of Money Laundering Act (PMLA).
• Authorized to attach the assets of individuals found guilty of violating FEMA.
• Empowered to conduct various enforcement actions like search, seizure, arrest, prosecution, and surveys against offenses committed under PMLA

Director’s Appointment:

• The appointment of the Director of ED is made by the central government upon the recommendation of a committee.
• This committee is chaired by the Central Vigilance Commissioner and includes members such as Vigilance Commissioners, Home Secretary, Secretary of the Department of Personnel and Training (DOPT), and Revenue Secretary.

FEMA (Foreign Exchange Management Act, 1999):

• It’s a civil law aimed at consolidating and amending laws related to external trade and payments, and promoting the orderly development of the foreign exchange market in India.
• ED investigates suspected contraventions of foreign exchange laws, adjudicates, and imposes penalties when violations are found.

PMLA (Prevention of Money Laundering Act, 2002):

• Enacted after FATF recommendations, PMLA aims to combat money laundering.
• ED executes PMLA provisions by investigating crime-derived assets, attaching property, and ensuring prosecution and confiscation through Special courts.

FEOA (Fugitive Economic Offenders Act, 2018):

• Introduced to tackle economic offenders evading Indian law by fleeing to foreign countries.
• ED enforces FEOA by attaching properties of fugitives, facilitating confiscation, and returning the proceeds to the Central Government.

Issues related to enforcement directorate

Misuse of Power:

• ED’s extensive powers in investigating economic crimes, such as money laundering, have led to concerns about misuse.
• Minor crimes have been included under laws like PMLA, originally meant for combating money laundering related to drug trafficking.

Lack of Transparency:

• There’s a lack of clarity in how the ED selects cases for investigation, with allegations of targeting opposition parties.
• Despite rare convictions, media trials often damage the reputation of the accused.

Low Conviction Rates:

• Between 2005 and 2013-14, there were zero convictions, and from 2014-15 to 2021-22, only 23 cases out of 888 registered resulted in convictions.

Political Bias:

• Allegations suggest that politicians favoring the ruling party receive favorable treatment from the ED.
• Somehave reportedly received “clean chits,” and investigations into their economic offenses have slowed down, raising concerns about political bias and lack of independence.

A REFORM WINDOW

TOPIC: (GS3) ECONOMY– SOURCE: THE HINDU

GST revenues for the financial year 2023-24 have been strong, with gross collections surpassing ₹20.18 lakh crore.

• March collections alone crossed ₹1.78 lakh crore, indicating consistent growth in revenue.

Implications for Government Finances

Exceeding Targets:

• Net direct tax collections rose by 19.9% by mid-March, reaching 97% of revised Budget targets.
• Central GST collections have surpassed revised estimates, allowing for potential revisions in future targets.

Factors Driving Revenue Growth

Enhanced Compliance Measures:

• Increased collections may be attributed to stricter enforcement against tax evasion, including measures against fake invoices and fraudulent input tax credits.
• Growth in net GST revenues and domestic transaction collections indicates heightened economic activity.

Opportunities for GST Reform

Rationalization of Rates:

• The government must consider reviving plans to rationalize GST rates, extending to items like electricity and petroleum products.
• High levies on essential products like cement and insurance should be reduced to stimulate economic growth.

Cess Utilization:

• The GST Compensation Cess, utilized for repaying pandemic-era borrowings, has generated significant revenue.
• There’s a possibility of winding down the cess earlier than the extended deadline of March 2026.

Addressing Policy Challenges

Avoiding New Levies:

• It’s crucial to refrain from introducing new levies except for genuinely demerit goods like tobacco.
• Taxes on items like hybrid vehicles, set at over 40%, contradict green goals and hinder consumption and investment.

Opportunity for Reform:

The buoyant GST revenues present an opportunity for the government to prioritize comprehensive reforms to the tax system.

By addressing issues such as rate rationalization and cess utilization, the government can foster economic growth and enhance fiscal sustainability.

ARUNACHAL AN INTEGRAL PART OF INDIA: CENTRE

TOPIC: (GS2) INTERNATIONAL RELATIONS– SOURCE: THE HINDU

India categorically rejects China’s attempts to rename places in Arunachal Pradesh, labelling them as “senseless“.

India asserts that assigning new names doesn’t change the fact that Arunachal Pradesh is an integral and inalienable part of India.

Despite Beijing’s release of standardized names in April last year, India reaffirms its sovereignty over the region.

India-China Border Dispute Background:

• The dispute pertains to the lengthy and intricate territorial disagreements along their shared 3,488-kilometer border.
• Main contested regions include Aksai Chin in the western sector and Arunachal Pradesh in the eastern sector.

Aksai Chin Significance:

• China administers Aksai Chin within its Xinjiang region, while India claims it as part of Ladakh, considering its strategic importance near the China-Pakistan Economic Corridor (CPEC).

Arunachal Pradesh Claim:

• China asserts its sovereignty over Arunachal Pradesh, labeling it as “South Tibet,” whereas India administers it as a northeastern state, integral to its territory.

Unclear Demarcation and LAC:

• Lack of clear demarcation along the border leads to disputes, with no mutually agreed Line of Actual Control (LAC) in certain areas.
• The LAC was established post the 1962 Indo-China war and divides the border into three sectors: Western (Ladakh), Middle (Himachal Pradesh and Uttarakhand), and Eastern (Arunachal Pradesh and Sikkim).

Mcmahon Line And Line of Actual Control(LAC)

Boundary line between India and China, established after the signing of the Shimla Convention on July 3rd, 1914.

• Spans approximately 890 kilometers, stretching from Bhutan in the west to about 260 kilometres eastward, reaching the Brahmaputra River.

Initial Rejection by India:

• Initially rejected by the Government of India due to concerns regarding compatibility with the Anglo-Russian Convention of 1907.Line of Actual Control (LAC):
• Another demarcation line between India and China, primarily in the western border regions and including the Ladakh region.
• The LAC serves as a de facto boundary, often disputed and subject to ongoing tensions between the two nations.

Henry McMahon and the Simla Agreement:

• The McMahon Line is named after Henry McMahon, who served as the Foreign Secretary of the British colonial government.
• He was the chief negotiator of the Simla Agreement of 1907, through which the McMahon Line was determined and established.

INDIA’S DEFENCE EXPORTS GROW 32.5% ON YEAR TO TOUCH RECORD HIGH

TOPIC: (GS3) SECURITY– SOURCE: THE HINDU

In the fiscal year 2023-24, India’s defence exports hit a record high of Rs 21,083 crore, marking a significant 32.5% growth from the previous fiscal year.

Surge Over Last Decade:

• Over the past decade, there has been a remarkable 31-fold increase in defence exports, soaring from Rs 4,312 crore in 2004-05 to Rs 88,319 crore in 2014-15, and then to Rs 21,083 crore in 2023-24.

Private Sector and DPSUs Contribution:

Both the private sector and Defence Public Sector Undertakings (DPSUs) played significant roles in this achievement, with the private sector contributing around 60% and DPSUs contributing about 40% to the overall defence exports.

Increase in Export Authorizations:

• The quantity of export permits granted to defense exporters increased from 1,414 in FY 2022-23 to 1,507 in FY 2023-24.

Government Initiatives:

• Policy reforms and ‘Ease of Doing Business’ initiatives by the Government, coupled with end-to-end digital solutions, have been crucial in promoting defence exports.

Global Acceptance:

The surge in defence exports showcases the global acceptance of Indian defence products and technologies, highlighting India’s growing prowess in the global defence market.

TRAI SEEKS MORE INPUTS ON NATIONAL BROADCASTING POLICY

TOPIC: (GS2) POLITY AND GOVERNANCE– SOURCE: INDIAN EXPRESS

TRAI initiated a consultation on the National Broadcasting Policy to enhance TV access, local manufacturing of broadcast equipment, and India’s status as an uplinking hub.

• Objectives include strengthening Doordarshan and All India Radio parent organization, upskilling broadcast industry workers, and promoting local content.
• Update frameworks to incorporate streaming and online gaming, expanding broadcasting beyond linear television.
• Inputs sought on strategies to attract foreign broadcasters and bolster India’s broadcasting sector.
• Overall, the consultation seeks comprehensive inputs to modernize and advance India’s broadcasting landscape.

TRAI

Formed in 1997 under the Telecom Regulatory Authority of India Act 1997.

TRAI Mandated to regulate the telecommunications sector in India, ensuring fair competition and safeguarding consumer interests.

Historical Context:

• Central Government previously regulated the telecom sector.
• With the sector’s growth and private competition, the need for an independent regulatory body arose.

Structure:

• Comprises a chairman and at least two full-time members, along with up to two part-time members.
• All members appointed by the Central Government, possessing expertise in telecom, industry, finance, law, etc.

Term and Office:

• Members serve a term of three years or until reaching the age of 65, whichever occurs earlier.
• Responsible for developing regulatory measures, policies, and frameworks to oversee telecom services, promote competition, ensure service quality, and protect consumer interests.

BRIDGE FUEL

TOPIC: (GS3) ENVIRONMENT– SOURCE: DOWN TO EARTH

Bridge fuel refers to a transitional fuel used to power society with minimal environmental impact as countries shift towards renewable energy sources.

• Its objective is to replace current fossil fuel-dependent energy sources as nations transition to cleaner, renewable energy economies free of greenhouse gas emissions.

Role of Natural Gas:

• Natural gas is often considered a bridge fuel due to its lower greenhouse gas emissions compared to coal and oil.
• Its combustion process produces fewer pollutants, making it a cleaner option in the short term.

Key Facts about Natural Gas:

• Natural gas is a fossil fuel, making it non-renewable.
• It comprises mainly methane (70-90%), along with ethane and propane.
• Possible impurities include carbon dioxide, hydrogen sulfide, and nitrogen.
• Despite its cleaner combustion, natural gas remains a finite resource, necessitating a long-term transition to renewable energy sources.

LEAP SECOND

TOPIC: (GS2) GEOGRAPHY– SOURCE: TIMES OF INDIA

A leap second is added periodically to Coordinated Universal Time (UTC) to account for the Earth’s gradual slowing of rotation due to factors like climate change and geological shifts.

• It helps synchronize atomic time with the Earth’s rotation to maintain accuracy in timekeeping worldwide.

Introduction and Purpose:

• Leap seconds were introduced in the early 1970s to address discrepancies between atomic time (UTC) and astronomical time (UT1), which determines the length of a day.
• The slowing and irregular rotation of the Earth necessitates the occasional addition of a leap second to ensure alignment between UTC and UT1.

Mechanism and Frequency:

• UTC, based on atomic clocks worldwide, is highly precise but can drift out of sync with UT1 over time.
• When the gap between UTC and UT1 nears 0.9 seconds, a leap second is inserted into UTC to rectify the disparity.
• Leap seconds are typically inserted either on June 30 or December 31 to minimize disruptions in timekeeping systems.

Effectiveness and Precision:

• UTC relies on a network of over 300 atomic clocks worldwide, ensuring stability within one second over millions of years.
• The periodic addition of leap seconds helps maintain synchronization between atomic time and the Earth’s rotation, ensuring accurate timekeeping globally.

VVPAT: VOTER VERIFIABLE PAPER AUDIT TRAIL (VVPAT)

TOPIC: (GS2) POLITY AND GOVERNANCE– SOURCE: THE HINDU

The Supreme Court has asked for replies from the Election Commission of India (ECI) and the Centre regarding a request to thoroughly count Voter Verifiable Paper Audit Trail (VVPAT) slips during elections.

VVPAT: Voter Verifiable Paper Audit Trail (VVPAT)

• VVPAT was first introduced in India during the 2014 Lok Sabha elections to enhance the transparency and credibility of the electoral process.

Components and Functionality:

• VVPAT comprises a printer and a status display unit attached to Electronic Voting Machines (EVMs).
• It allows voters to verify that their votes are cast as intended by printing a slip containing candidate details visible through a transparent window for 7 seconds before being cut and deposited into a sealed drop box.

Verification Process:

• Results of EVMs can be verified using the slips stored in VVPAT drop boxes.
• While accessible to polling officials, VVPAT verification is not permitted for voters.
• In cases of fraud or miscalculation allegations, VVPAT slips are considered more authoritative than EVM tallies.

Usage Protocol:

• Voter verification through VVPAT is rare and typically reserved for extreme circumstances.
• The Election Commission of India (ECI) has the authority to order VVPAT verification in response to complaints.

Implementation and Development:

• VVPAT machines are developed by the Electronics Corporation of India Limited (ECIL) and Bharat Electronics Ltd (BEL).
• VVPAT slips are randomly counted in selected polling stations per constituency, maintaining the integrity of the electoral process while ensuring operational efficiency