The HINDU Notes – 02nd April 2018 - VISION

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Monday, April 02, 2018

The HINDU Notes – 02nd April 2018






📰 Can’t stop legislators from practising: Bar Council

But can’t be party to impeachment motion against judge

•The Bar Council of India has said it cannot stop legislators from practising as lawyerst. However, it can ban lawyer-legislators from taking part in an impeachment motion against a judge.

•The Council, which is the apex lawyers’ body in the country, said legislators who move an impeachment motion against any judge of the higher judiciary would not be allowed to appear before that court.

Preventive measure

•BCI Chairman and senior advocate Manan Kumar Mishra said the resolution was not meant as a curb on the functions of a legislator, but a preventive measure taken against “misuse of privilege” in the lawmaker’s role as a lawyer.

•The BCI resolution comes at a time when Opposition parties are working towards introducing an impeachment motion against Chief Justice of India Dipak Misra. It has been reported that Congress MPs who are practising as senior advocates in the Supreme Court play a role in bringing the impeachment motion.

•“The BCI has come to a final conclusion that we cannot stop or ban MPs from practising, but there is an exception to it. The lawyer-MPs or MLAs, if they start any motion of impeachment or a removal proceeding against any High Court or Supreme Court judge, they will not be allowed to practise in that particular court. This is the majority view of the council,” Mr. Mishra told the media on Saturday.

•The apex court on March 12 sought the response of the BCI on a plea filed by advocate Ashwini Kumar Upadhyay, seeking a ban on lawmakers from practising as advocates.

•The petition has said that while a public servant cannot practise as an advocate, legislators are practising in various courts which is a violation of Article 14 of the Constitution (equality before law).

•It has also said that MPs have the power of voting on impeachment of judges of the Supreme Court and the High Courts.

•“Therefore, allowing them to practise as an advocate in the Supreme Court and the High Courts is a very serious ‘conflict of interest’ because it may allow the judges to feel beholden to them and to oblige them,” according to the petition.

•The hearing on this petition is fixed for April 23.

📰 Donate floral offerings to shelter homes: SC

Widows can make eco-friendly products

•The Supreme Court has urged temple towns across the country to follow in the footsteps of the Uttar Pradesh Women Welfare department’s initiative to donate “huge” floral offerings received at temples to destitute women and widows’ shelter homes.

•The department, under Principal Secretary Renuka Kumar, ensures that the flowers, after use in the temples in Vrindaban and Mathura, are sent to the shelter homes.

•The inmates of these shelters use the flowers to make eco-friendly products like sugandh essence, sugandh jal, agarbatti, etc, with the technical support of Floral and Fragrance Development Centre, Kannauj, under the Union Micro, Small and Medium Enterprises Ministry. Earlier dumped as garbage, the flowers are now a major source of rehabilitation, dignity and earning for the Vrindavan widows, the Supreme Court acknowledged the novel initiative.

‘Dumped as garbage’

•Ms. Kumar wrote to the Supreme Court Bench of Justices Madan B. Lokur and Deepak Gupta about the effort in a letter on March 17. “Earlier, the floral offerings were either being dumped in river Yamuna or dumped elsewhere as garbage. Under the initiative of the Department of Women Welfare in Uttar Pradesh, the floral offerings are now being used for making eco-friendly products like sugandh essence, sugandh jal, gulal, dhoop batti, agarbatti, etc...” the court noted in its eight-page order.

Directive sought

•Ms. Kumar asked the court to direct the temples and local administrative authorities of Vrindavan and Mathura to deposit floral offerings only to the premises of widow and destitute shelter homes run by Uttar Pradesh Mahila Kalyan Nigam in Vrindavan and not to dump these offerings at any other place or send them elsewhere. The court directed the Nagar Nigam Mathura to ensure that the flower offerings are collected and deposited with shelter home premises of the Uttar Pradesh Mahila Kalyan Nigam. Finally, the court asked the National Commission for Women to examine if similar initiatives can be taken in other temple towns like Puri, Varanasi, etc.

📰 A rude wake-up call

There must be some safeguards before a motion to impeach a judge is admitted in Parliament

•The euphoria in some circles over a proposed resolution of impeachment of the Chief Justice of India is a matter of grave concern, for it brings to fore issues that directly impinge on the independence of the judiciary.

Reason for discomfort

•Let the protagonists in the present drama be kept aside for the time being. The idea is not to comment on the bona fides, or the lack of them, in the proposed move. The problem is, when the political community (with all due respect to it) sets out to handle a matter pertaining to the judiciary, a sense of acute discomfort does descend.

•Two instances that immediately preceded the present one only reinforce the concerns: one concerning a judge from Gujarat for his observations in a judgment and the other from Andhra/Telangana where a communal twist was given to the case.

•The question then is, should there be some safeguards before the motion, tabled by the requisite number of Members of Parliament, is admitted?

•A fearless judge is the bedrock of an independent judiciary, as much as an independent judiciary itself is the foundation on which the rule of law rests.

•In the discharge of his official duty, a judge is obliged to decide on a variety of matters concerning the government and the political class. To name a few: public interest litigations involving disclosure norms for contesting candidates; the right of a chargesheeted person to contest elections; election petitions; electoral disqualifications, validity of government policies, criminal prosecutions of political leaders, including for owning assets disproportionate to their known sources of income; challenges to anti-defection law disqualifications; challenges to action for alleged breach of privilege motions.

•Fixity of tenure and removal only by impeachment, no doubt, are guarantees for independence. But in a perception-driven world, the incalculable damage that even a mere admission of an impeachment motion can cause, and the consequential loss of reputation, that can never be redeemed, need to be primarily addressed.

•Moreover , till the proceedings conclude, the functioning of the judge concerned comes under a cloud and even an ultimate exoneration cannot give him or her back the enormous loss of honour. This is quite apart from the incalculable damage the process itself causes to the institution of the judiciary.

•While a corrupt judge should be impeached without doubt, it must be ensured that the large body of independent judges is protected and they are not inhibited and shackled while going about their work with any possible threat of an impeachment looming large. Judges should be free of chilling effects.

Question of procedure

•Article 124(4) of the Constitution and the provisions of the Judges (Inquiry) Act, should be so interpreted that before admitting a motion of impeachment against a judge of a high court or the Supreme Court, the presiding officers in Parliament should be obliged to obtain the concurrence of the full court of the Supreme Court. This would be on the administrative side and if it involves a judge of the apex court, that judge would not participate in the sitting. To obviate any possibility of delay or the non-convening of full court meetings, it could be provided that in the absence of there being any response from the Supreme Court in four weeks’ time, it would be a deemed concurrence. Any admission of the motion without the concurrence would render the motion illegal and ab initio void.

•There are several reasons why this interpretation would comport with our constitutional scheme. First, after the Second Judges case, today the power to appoint judges of the higher judiciary vests in the apex court. Removal being directly connected to appointment, it is only logical that the first filter in the process vest with the judiciary.

•Second, the principle of independence of the judiciary on which the Second Judges Case was founded for the aspect of appointment should apply with full vigour to the initiation of the removal process. In a matter like this, which is so integral to the judiciary and to its independence, such a safeguard ought not to be seen as diluting the powers of the presiding officers of Parliament.

•Third, on matters of criminal prosecution of a sitting judge, the Veeraswami case has already recognised a similar methodology of screening. Impeachment and prosecution are from the perspective of the institution on the same pedestal.

•Fourth, the Judges (Inquiry) Act expressly provides that the presiding officers, before admitting a motion for impeachment, will consult such persons as they deem fit. It can be safely presumed that while the peer group will immediately concur to get rid of the black sheep from their midst, they will zealously safeguard a judge who is unfairly targeted.

In the judiciary’s court

•There is a perception in the community that attempts are being made to considerably weaken the judiciary. There is also a feeling, that enough is not being done by the judiciary to check that attempt. It is time for the judiciary to assert itself. The absolute disregard shown to collegium recommendations by the executive, notwithstanding the categoric pronouncement in the National Judicial Appointments Commission (NJAC) case, is shocking. But what is bewildering is the total inaction from the judicial side. Vacancies are mounting and pendency of cases is reaching alarming proportions. The faith of the people in the judiciary should not be lost. It is time that by a judicial order the Memorandum of Procedure (MOP) is set out and a mandamus issued to government to follow the same and clear pending appointments in a time-bound manner. If the judiciary is perceived as weak, more and more impeachment proposals would do the rounds. The message should go from the top. That will also rejuvenate the high courts and give the judges their much-needed confidence.

•In the eyes of the international community, the executive government also will be shown in a bad light if the judiciary in the country is not independent and strong. Business will not be forthcoming. Tourism will suffer. There will be fear and insecurity. The rule of law will be a far cry. All this will deliver a serious blow to the economy.

•After all, there is no reason for any clean government to fear a judiciary that is strong, fearless and independent.

📰 CVC wants to keep an eye on private banks

Asks PMO for greater oversight role

•The Central Vigilance Commission (CVC) has urged the Prime Minister’s Office to bring private sector banks under its watch, citing the fact that they have been involved in many recent instances of malfeasance.

•Vigilance officers in all State-owned public sector banks are required to report irregularities and possible wrongdoing to the CVC, India’s apex body for checking corruption in the government. Private sector banks are out of the CVC’s purview, but are subjected to statutory audits from the Reserve Bank of India (RBI).

Deviating from norms

•Private banks have been rapped in recent months by the banking regulator for deviating from norms that govern the disclosure of non-performing assets (NPAs), leading to under-reporting. The processes followed for lending decisions among private lenders have also come under the scanner.

•The Central Bureau of Investigation disclosed last week that it has initiated a preliminary inquiry into loans granted by the country’s largest private lender ICICI Bank to Videocon Industries as it suspects a nexus between Deepak Kochhar, husband of the bank’s CEO and managing director Chanda Kochhar, and Videocon chairman Venugopal Dhoot. “The CVC has requested the PMO to consider empowering it to have an oversight on private banks as well, and make the legislative changes to facilitate the same,” said an official.

📰 Finance panel gets long wish list

Finance panel gets long wish list
Pawar for buffer against oil prices, Nitish opposes 3% fiscal deficit target

•The work of the 15th Finance Commission may have come under a cloud over allegations that the terms of reference under which it operates may end up favouring northern States more than southern ones, but those are not the only inputs that have come in from across the political spectrum.

•Fiscal deficit targets, a financial buffer against rising crude oil prices and funds to deal with floods are just some of the suggestions, even as commission chairperson N.K. Singh has written to Congress president Rahul Gandhi, casting a wider net for ideas.

•Nationalist Congress Party (NCP) chief Sharad Pawar was one of the first to write to the commission, flagging his areas of concern as the commission began its task of deciding financial devolution to various States.

•Among the many things Mr. Pawar wrote about was a recommendation that a financial buffer be created to insulate the economy from the vagaries of rising crude prices and closer integration into the global economy.

•“As far as the Central government is concerned, the rising prices of crude oil in the international market will mean not only higher prices being paid by the consumers but depletion of the foreign exchange kitty and spectre of inflation,” he wrote in a letter to Mr. Singh.

•“Prime Minister (Narendra Modi) has taken a stand at Davos, strongly supporting the process of globalisation. However, increasing integration with the global economy would also imply that the ups and downs in the international market will affect the price scenario within the country. This may be inevitable but the commission may have to think of ways and means of containing any shocks to the domestic economy,” he added, concluding his letter, by suggesting that the commission “take a dynamic view of its mandate and concentrate on measures that will enhance and accelerate national development rather than filling gaps in the State budgets.”

Domestic concerns

•While Mr. Pawar’s letter addressed larger questions of geo-economics and politics, Bihar Chief Minister Nitish Kumar’s letter to the commission spoke of more domestic concerns.

•In a letter to Mr. Singh, he wrote that the 3% target for fiscal deficit under the Fiscal Responsibility and Budget Management Act was “iniquitous” and needed to be reviewed in the specific context of financially challenged States.

•Mr. Kumar also said that the State is still waiting for the special financial allocations promised to it under the Bihar State Reorganisation Act of 2000.

•Uttarakhand Chief Minister Trivendra Singh Rawat has flagged specific issues pertaining to hilly States and allocations to them.

•Financial devolution has become a touchy issue ever since news that the commission’s terms of reference include the 2011 Census as a baseline came to light. With southern States raising concerns over their allocations, sources have told The Hindu that Mr. Singh, after visiting Arunachal Pradesh and Jammu and Kashmir for intensive consultations next month will be visiting Kerala, to soothe tempers and apprehensions.

📰 High hopes?

The Centre could add a few more changesto make Air India tempting for investors

•Nine months after the Union Cabinet’s in-principle nod for offloading the government’s stake in Air India, the ball has finally been set rolling to privatise the bleeding airline. A preliminary information memorandum was unveiled last week by the Civil Aviation Ministry for prospective bidders. According to this, the Centre will divest 76% of its stake in AI. A 100% stake is being offered in its subsidiary Air India Express, and a 50% stake is on offer in its ground handling operations arm. Other subsidiaries, such as Alliance Air, Hotel Corporation of India, which owns the Centaur properties in New Delhi and Srinagar, Air India Air Transport Services and Air India Engineering Services, are not being sold — they will be transferred to a special purpose entity along with roughly a third of AI’s Rs. 48,781 crore outstanding debt. Effectively, the government is offering a majority stake in AI and AI Express with management control, as well as a cumulative debt burden worth Rs. 33,392 crore. For prospective buyers, the attractiveness of AI’s international flying rights and slots would be offset by the possibility of taking on so much debt and putting a plan in place to whittle it down or refinance the loans. Details of the reallocation of these liabilities between AI and AI Express, and the logic behind it, will only be shared with bidders at a later stage when requests for proposals are issued.





•Given the uncertainties over its debt burden, it will not be a surprise if those bold enough to make a bid for AI find it difficult to offer a lucrative price to the government. It is worth pausing to see if serious investors are enthused by the government’s decision to retain 24% stake in the airline (which will possibly come with one or two bureaucrats nominated to the airline’s board of directors). In 2016-17, the airline suffered a net loss of Rs. 5,765 crore, owing mainly to its high interest costs. While debt has been the major reason for AI’s losses in recent years, operational inefficiencies and poor management have been bugbears for long. The government is expected to offload its residual 24% stake at a later date, pinning its hopes on a better valuation after the new owner has fixed the airline’s legacy issues. The real benefit of privatisation will be that the airline will no longer drain taxpayer funds, after thousands of crores have been infused over the years to keep it up and running. That its new owner would get some room to rationalise its large workforce a year after the transaction and the government is thinking of footing the bill for some benefits paid to retired employees, such as complimentary air tickets, sounds good. The government is understandably keen to close the AI sale transaction soon, preferably by early 2019, in order to bolster its reformist credentials. But investors will look for the finer details to ascertain the carrier’s true worth.

📰 ‘RBI examining PNB fraud for enforcement action’

‘Central bank had issued instructions to strengthen SWIFT’

•With multiple agencies probing the alleged Rs. 13,000-crore fraud at the State-run Punjab National Bank (PNB), the Reserve Bank of India said it has conducted scrutiny and the matter is currently under examination for “enforcement action.”

•Replying to an RTI query, the central bank also said it had been issuing necessary instructions to banks from time to time on a variety of issues of prudential supervisory concern, including the management of operational risks inherent in the functioning of banks.

•Asked to provide details of action taken by the RBI after receiving input of suspected fraud at PNB and steps being taken to check such recurrences, the banking sector regulator said a confidential circular on time-bound implementation and strengthening of ‘SWIFT’— related operational controls was issued to public and private banks on February 20.

Response to RTI query

•“Further the scrutiny is conducted in the matter and is under examination for supervisory/enforcement action,” the RBI said in response to the RTI application filed by this PTI correspondent. The PNB initially reported to the RBI on January 29 an incidence of fraud of Rs. 280 crore at its Brady House branch in Mumbai.

•This information was subsequently updated and revised under the fraud reporting platform on multiple dates, the RBI said.

📰 After glitch, ISRO trying to restore link with GSAT-6A

After glitch, ISRO trying to restore link with GSAT-6A
Spacecraft built for 10 years goes silent on second day

•A day after GSAT-6A, the country’s newest communication satellite, went incommunicado in space, officials of the Indian Space Research Organisation (ISRO) said on Sunday that they were working to restore the link with it.

•The silence is initially believed to have been caused by a power glitch or a short circuit on the satellite.

•The spacecraft, launched on March 29, was meant to support military communications in hostile regions using handy ground terminals. Built to last 10-12 years, it was to be a standby for its three-year-old replica GSAT-6.

ISRO chief hopeful

•ISRO Chairman K. Sivan, for whom this was the first mission after taking charge, said, “Going by preliminary data, we expect that we will be able to recover the satellite. Its systems are in good health. Our teams are working round the clock to re-establish contact with the satellite. We are trying through our ground stations across the world.” Functionally, there would be no shortage or disturbance as GSAT-6 would be at work for some more years, he said.

•“There will be no impact of this problem on our next missions,” Dr. Sivan said.

•The launch of the navigation satellite IRNSS-1I is scheduled for April 12. An expert committee is looking into the issue and will suggest recovery and other options.

📰 Low-down on electric and hybrid vehicles

•Though the government seems to have dropped its plan to implement a comprehensive electric vehicle (EV) policy, it is still keen on shifting India’s petrol-diesel-based auto industry to electric. Government think tank NITI Aayog has tasked seven Ministries, including Heavy Industries and Power, to come up with guidelines to encourage the use of EVs.

What are the differences between electric and hybrid vehicles?

•The key difference between hybrid and all-EVs is in the sources of fuel and locomotion available to them. Hybrid vehicles have two sources available to them— a battery that powers an electric motor and a fuel tank that powers a normal petrol engine.

•Typically, the battery can power the electric motor for only about 60-70 km, but there are constant improvements being made in the efficiency and capacity of lithium-ion batteries and so, this is expected to improve as more carmakers choose to roll out hybrid or electric variants. Once the battery is depleted, the hybrid car switches over to the petrol engine, which then functions like any other normal car engine. An all-EV does not have this advantage. Once its battery is depleted, it has no backup source of fuel. However, electric cars have the benefit of larger batteries since they do not have to share space with a petrol engine or fuel tank. So, typically, an EV can travel a much longer distance than a hybrid car running on its battery.

How do you refuel them?

•A normal plug-in hybrid vehicle can be refuelled by plugging the car into a wall socket or a charging point, and refilling the petrol tank. However, there are some hybrid variants that can recharge the electric battery through a technology called regenerative braking, where the vehicle converts the force of the car when it brakes into electrical energy. In these models, only the fuel tank needs to be filled. All EVs need to be charged from a charging point. Charging time depends on the size of the battery and the source of electricity. A DC charging point can fully charge a car battery in a fraction of the time taken using an AC charging point, which is 6-8 hours.

How does the Center differentiate between the two?

•The main difference is in their tax treatment under the Goods and Services Tax. While EVs are taxed at 12%, hybrid vehicles are taxed on par with the luxury vehicles at 28% plus 15% cess.

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