Why is it in the News?

In a democracy, while elections are imperative, it's equally crucial for both the populace and our leaders to retain their moral integrity, as a loss of ethical grounding could result in repercussions that extend far beyond the periodic act of political selection.

Context:

•  Satyameva Jayate ("Truth alone triumphs") from the Mundaka Upanishad was adopted as the national motto on January 26, 1950, the day India became a Republic.
• A day earlier, the country's Election Commission was formed with the primary responsibility of enabling citizens to exercise their democratic right to choose a government.
• The Election Commission is expected to provide a level playing field so that candidates, political parties, and their campaigners do not unduly influence voters through excessive use of money, force, or dishonesty.

About The Model Code of Conduct (MCC):

• The Election Commission of India introduced the Model Code of Conduct with the hope that it would encourage self-control among political stakeholders.
• The 2019 Manual emphasized that those seeking public office should behave in a way worthy of being emulated by others.
• The Commission considers the Code an important contribution by political parties to democracy.
• It expects parties to exhibit model behaviour in their actions and rhetoric.
• However, reality often deviates from this expectation. Political discourse sometimes degrades into coarse and ignoble exchanges.
• This has led to debates on whether it should be called a moral code rather than just a model code.

The Complexity of Truth from a Philosophical Perspective:

• Francis Bacon's Essay of Truth commences with Pilate's profound questioning, "What is truth?" - a query that resonates through the ages, its answer shrouded in layers of complexity.
• This intricate nature finds symbolic representation in the Ashokan pillar's trio of visible lions, embodying the three dimensions of truth: my viewpoint, your perspective, and an objective third-person narrative.
• Yet, there exists a fourth, unseen dimension - that of absolute truth, often perceived as knowable only to a higher power.
• Amidst this philosophical labyrinth, the Election Commission of India (ECI) navigates the realm of human imperfection, striving to enforce the Model Code of Conduct (MCC) – a framework designed to curb dishonest practices during the electoral process.
• However, expecting individuals to adhere to this model solely for the duration of elections, if they have not upheld such principles in their daily lives, could be considered a naive endeavor.

The Intersection of Morality and Law in the Electoral Process:

• Foundations of the Model Code of Conduct (MCC):
• At the core of the Model Code of Conduct lies a fundamental interplay between legal requirements and moral expectations.
  • Morality governs individual behaviour based on notions of right and wrong, often rooted in cultural, religious, or personal beliefs.
  • Law, conversely, comprises rules established by a governing authority to regulate conduct and ensure order and justice within society.
• Philosophical perspectives offer valuable insights into this dynamic. Immanuel Kant's philosophy distinguishes between morality and law, viewing moral actions as those driven by a sense of duty, while societal rules govern legal actions.
  • Utilitarianism, advocated by thinkers like Jeremy Bentham and John Stuart Mill, evaluates actions based on their consequences and their contribution to the overall well-being of society.
  • In the context of the Model Code of Conduct, this perspective suggests that political behaviour should be assessed not only against legal standards but also by its broader impact on societal harmony and democratic health.
• Legal Framework and Enforcement:
• The legal framework encompassing the Model Code of Conduct includes specific provisions in the Indian Penal Code and the Representation of the People Act, 1951.
  • These laws define actions that constitute corrupt practices and electoral offences, providing a legal basis for enforcing the Code.
  • However, the intersection of morality and law within this framework presents unique challenges.
• In legal terms, "mens rea" refers to the intention or knowledge of wrongdoing, and establishing mens rea is crucial for proving guilt in many cases.
  • The Model Code of Conduct implicitly addresses mens rea by prohibiting actions intended to manipulate or deceive voters, such as false promises or appeals to communal sentiments.
• Sections 123(3) and 123(3A) of the Representation of the People Act classify appeals to caste or communal feelings as corrupt practices, punishable under the law.
  • Similarly, Section 125 prohibits promoting enmity between different groups in connection with elections.
  • These legal provisions aim to curb divisive tactics and uphold the ethical conduct envisioned by the Model Code of Conduct.
  • However, enforcement requires clear evidence linking the actions to the intent of influencing electoral outcomes.

Ethical Reflection in the Electoral Process & Lesson from Mahabharata:

• Upholding Integrity: The imperative for ethical reflection in the electoral process stems from the need to uphold the integrity of democracy itself.
  • The conduct of elections must align with the core values of truth and fairness that underpin the democratic ethos.
• Ethical Lesson from Mahabharata: The story of Yudhishthira in the Mahabharata, who lost his moral high ground despite technically telling the truth, underscores the importance of ethics over mere adherence to rules.
  • Ethics in elections transcends simply following the law; it involves adhering to higher standards of honesty, integrity, and fairness.
• Moral Soundness over Legal Compliance: Ethical reflection ensures that political actions and decisions are not just legally compliant but also morally sound.
  • This is particularly crucial in a democracy, where the legitimacy of the government is derived from the consent of the governed, and this consent must be obtained through fair means.
• Safeguarding Democratic Norms: When ethical standards are compromised, democratic norms such as transparency, accountability, and fairness are weakened.
  • This erosion can lead to a governance crisis where the authority of elected officials is questioned, undermining the very foundation upon which democracy rests.

Conclusion

“Satyameva Jayate” is not just India’s motto however it encapsulates a guiding principle that should permeate the conduct of individuals and institutions alike. The Election Commission of India's efforts to enforce the Model Code of Conduct reflect an ongoing struggle to strike a delicate balance between legal enforcement and moral persuasion. For a truly democratic society to thrive, this equilibrium must be continually sought and maintained. The pursuit of political power must never be allowed to erode the foundational value of truth upon which the democratic edifice rests. By upholding the principle of Satyameva Jayate, not just in rhetoric but in action, the integrity of the electoral process and the sanctity of democratic norms can be safeguarded, ensuring that the will of the people remains the cornerstone of governance.

Why is it in the News?

The Supreme Court recently ordered the release of NewsClick Editor Prabir Purkayastha after hearing his plea, challenging the arrest by Delhi Police in an Unlawful Activities Prevention Act (UAPA) case.

Context:

• The recent ruling by the Supreme Court of India reaffirms its dedication to due process, dispelling assertions of subservience to the executive branch.
• Through a landmark judgment, the Court underscored the indispensable role of due process, especially concerning the arrest and detention of Prabir Purkayastha, founder-editor of Newsclick.
• This verdict emphasizes the crucial disparity between reasons for arrest and the grounds for arrest, emphasizing that the latter must be tailored to the individual and formally communicated in writing to safeguard personal liberty.

Why did the Supreme Court Invalidate Purkayastha’s Arrest?

• The court invalidated the arrest due to the absence of provided grounds, citing a precedent set in the Pankaj Bansal case (2023).
  • This landmark ruling emphasized the constitutional right, under Article 22(1), to be informed about the grounds of arrest in writing, deeming any infringement of this right as vitiating the arrest and remand process.
• Furthermore, the verdict underscored the fundamental and statutory right of an arrested person to receive a written copy of the grounds of arrest without exception.
  • The court criticized the clandestine manner in which the procedure was conducted, noting that the accused was deprived of the opportunity to defend himself and avail legal representation.
• Additionally, the judgment clarified that an FIR serves to initiate criminal proceedings and is not exhaustive in detailing grounds of arrest.
  • The court emphasized that the grounds of arrest must convey specific, personal facts to the accused, distinct from general reasons for arrest.

What is the Due Process of Law?

• Due process of law is a foundational legal principle that ensures the fair and just application of laws while protecting individual rights.
• The concept requires the state to adhere to established legal rules and principles in every case, ensuring that all legal rights owed to a person are respected.
• It serves as a safeguard against the arbitrary exercise of government power.

Significance:

• Fairness and Reasonableness: Due process emphasizes fairness, reasonableness, justness, and non-arbitrariness in legal proceedings.
• Invalidation of Inequality: Any procedural inequality in the law can be rendered invalid under due process.
• Legislative Oversight: Courts consider legislative intent while evaluating statutes in light of due process.
• Protection of Individual Rights: Due process emphasizes the importance of individual rights and grants courts the authority to nullify biased laws.
• Adherence to Basic Legal Procedures: Laws must follow a fundamental process to receive state assent.

Historical Background:

• First mentioned in a statute by British King Edward III in the 14th century.
• The Fifth Amendment of the US Constitution (1791) introduced due process in a constitutional framework.
• In India, due process was invoked by freedom fighters against unjust colonial laws.
• The Constituent Assembly considered including due process in India's Constitution but ultimately adopted a "procedure established by law" instead.

Evolution through Case Laws:

• The Supreme Court's interpretation of due process evolved over time.
• Initial judgments, such as A K Gopalan (1950) and ADM Jabalpur (1976), limited due process by focusing on the narrow meaning of "procedure established by law."
• The Bank Nationalisation case (1970) extended due process to property rights.
• The landmark Maneka Gandhi case (1978) established due process as an integral part of the right to life and personal liberty, requiring laws to be reasonable, just, fair, and non-arbitrary.

Concerns Regarding the Unlawful Activities (Prevention) Act (UAPA) 1967 and Due Process of Law:

The UAPA 1967 raises concerns regarding due process of law due to several provisions that deviate from established criminal law principles. These include:

• Extended Remand and Custody Periods: UAPA allows for 30-day remand orders instead of the usual 15 days and extends the maximum period of judicial custody before filing a chargesheet from 90 to 180 days.
  • In the 2023 Pramod Singla case, the Supreme Court highlighted the potential for abuse in preventive detention laws and emphasized the need for strict procedural adherence.
• Controversial Bail Provisions: Section 43D(5) of the Act makes obtaining bail extremely difficult for suspects if the court believes there are reasonable grounds to presume the charges are true.
  • The accused must prove the case is false without inviting the court to evaluate evidence, which human rights defenders argue is draconian and undermines due process.
• Expanded Scope Over Time: The Act was amended in 2004 and 2013 to broaden its coverage, including the declaration of unlawful associations, punishment for terrorist acts, and activities threatening the country's security.
  • This expanded scope, along with an increased ban on organizations from two to five years, raises concerns about potential misuse and erosion of due process protections.
• Pendency of Cases: According to the National Crime Records Bureau (NCRB), over 12,000 people were imprisoned under such laws in 2021, with 76% being undertrials in 2022.
  • Only 18% of UAPA cases result in conviction, and there is an alarming 89% pendency rate for UAPA cases in courts.
  • This raises questions about the effectiveness and fairness of the Act in ensuring due process.

Achieving a Balance Between State Security and Due Process of Law:

Ensuring national security while preserving due process of law requires a nuanced approach that respects individual rights and maintains checks on state power. The following strategies can help achieve this balance:

• Clear Legal Framework: Establish precise laws that define the limits and procedures for state actions in the name of security.
  • This framework should ensure accountability and prevent misuse of authority.
  • A parliamentary committee can oversee and recommend changes to security legislation.
• Strengthened Judicial Oversight: Enhance judicial mechanisms to review and check arbitrary actions by state authorities, including scrutinizing the legality of detentions and other security measures.
  • A judicial review committee can assess cases under laws like the UAPA.
• Independent Monitoring Bodies: Create independent bodies to monitor the implementation of security laws and investigate abuses.
  • These entities should hold state actors accountable, with organizations like the National Commission for Minorities and NHRC playing crucial roles.
• Human Rights Training: Train law enforcement and security personnel on human rights standards, emphasizing the importance of protecting individual liberties while maintaining security.
  • Develop training programs in collaboration with institutions such as the National Police Academy.
• Public Participation: Encourage public engagement in security policy discussions through platforms like MyGov.
  • This fosters transparency and acceptance of policies that balance security and rights.
• International Cooperation: Collaborate with international organizations like UNESCO and press freedom groups to promote best practices, upholding press freedom and ensuring a safe environment for journalists and media workers, as outlined in the UN Plan of Action on the Safety of Journalists.

Conclusion

As India continues to evolve, it is crucial to ensure that stringent laws, such as the UAPA, do not overshadow the fundamental rights of its citizens. Achieving a balance between state security and individual liberties is vital not only for the protection of personal freedoms but also as a testament to the strength and integrity of India's democratic society. By fostering a legal and constitutional ethos that values this equilibrium, India can pave the way for continued progress, safeguarding the well-being of its people and the future of its democracy.

Why is it in the News?

The top court has a chance, in Property Owners Association vs State of Maharashtra, to resolve the clash between fundamental rights and Directive Principles of State Policy.

Context:

• In a recent hearing before a nine-judge Bench of the Supreme Court of India in Property Owners Association vs State of Maharashtra, two crucial questions have surfaced concerning the interpretation and implementation of constitutional provisions.
• The initial query revolves around elucidating the concept of "material resources of the community" as articulated in Article 39(b) of the Indian Constitution.
• The subsequent issue delves into the potential discord between legislation crafted to fulfil the objectives delineated in Article 39(b) and the fundamental rights to equality and liberty enshrined in Part III of the Constitution.

The Conflict Between Fundamental Rights (FR) and Directive Principles of State Policy (DPSP):

• Inherent Dilemma: At the core of India's constitutional framework lies a significant tension between fundamental rights and directive principles of state policy (DPSP).
  • Part III guarantees citizens' fundamental rights, while Part IV outlines DPSPs as guiding principles for state action.
  • This tension stems from the divergent nature of these provisions:
    • fundamental rights are legally enforceable
    • whereas DPSPs serve as moral and political directives without judicial enforceability.
• Clash of Objectives: The conflict between fundamental rights and DPSPs arises from conflicting priorities: individual liberties versus collective welfare.
  • While fundamental rights focus on safeguarding individual autonomy and limiting state interference, DPSPs underscore the state's responsibility to foster social and economic justice for citizens' well-being.
  • This tension is compounded by India's diverse societal fabric, marked by varying social, economic, and cultural landscapes.
• Historical Discourse: The conflict between fundamental rights and DPSPs has sparked considerable debate and legal scrutiny throughout India's constitutional history.
  • Courts have grappled with striking a balance between state intervention for societal welfare and safeguarding individual freedoms, especially when legislative measures aimed at fulfilling DPSPs impinge on fundamental rights.
  • The Supreme Court's pivotal role in adjudicating these conflicts has significantly shaped India's constitutional democracy.
• Intensified Debate: During the 1970s, the conflict between fundamental rights and DPSPs reached a zenith, prompting amendments to shield certain laws from judicial review.
  • The landmark Kesavananda Bharati vs State of Kerala (1973) case sought to address this conflict, yet it persisted, reflecting the ongoing struggle to reconcile competing constitutional imperatives.

What is the Article 31C of the Indian Constitution?

• The 25th Amendment (Birth of Article 31C): Enacted through the 25th amendment to the Indian Constitution, Article 31C was introduced to shield laws aimed at actualizing Article 39(b) and (c) from judicial scrutiny concerning potential violations of fundamental rights.
  • This constitutional provision sought to safeguard legislative measures crafted to secure the material resources of the community, shielding them from challenges under Articles 14 and 19, which safeguard equality and various freedoms, respectively.
• Kesavananda Bharati Case (Challenging Article 31C): The landmark Kesavananda Bharati vs State of Kerala (1973) case questioned the validity and breadth of Article 31C.
  • The Supreme Court deliberated on whether Article 31C, by immunizing certain laws from fundamental rights challenges, infringed upon the basic structure of the Constitution.
  • While affirming the principle of judicial review and the supremacy of the Constitution's basic structure, the ruling left uncertainties about the extent to which Article 31C could restrict fundamental rights.
• Expansion via the 42nd Amendment: Despite judicial scrutiny in Kesavananda, Parliament expanded Article 31C's reach through the 42nd Amendment in 1976.
  • This amendment aimed to widen the immunity granted to laws furthering directive principles, extending beyond Article 39(b) and (c) to encompass any directive principle.
  • The 42nd Amendment marked a significant shift in the equilibrium between fundamental rights and directive principles, sparking concerns over potential encroachments on individual liberties.
• Minerva Mills Case  (Judicial Intervention): The constitutionality of the expanded Article 31C faced judicial scrutiny in Minerva Mills vs Union of India (1980).
  • In a seminal verdict, the Supreme Court struck down the 42nd Amendment, emphasizing the symbiotic relationship between fundamental rights and directive principles within the constitutional framework.
  • Chief Justice Y.V. Chandrachud's assertion regarding fundamental rights serving as a check against unchecked state authority underscored the significance of this ruling.
• Ambiguities and Pending Matters: Following the Minerva Mills case, ambiguities persisted regarding the status of Article 31C and its alignment with the Constitution's basic structure.
  • Justice Y.V. Chandrachud's divergent opinions in Minerva Mills and Waman Rao vs Union of India added complexity to the issue.
  • The absence of a definitive Supreme Court ruling on the validity of Article 31C has perpetuated the tension between fundamental rights and directive principles.

Property Owners Association Vs State of Maharashtra: Resolving a Constitutional Conundrum

• Comprehensive Legal Examination by the Supreme Court: At the heart of this case lies a critical examination of a law granting a state government board full control over dilapidated buildings, contingent upon the consent of at least 70% of residents.
  • The legality of this law is under scrutiny, particularly regarding its potential infringement on fundamental rights enshrined in Articles 14 and 19, which ensure equality and various freedoms, respectively.
• Rebalancing Fundamental Rights and Directive Principles: The verdict in the Property Owners case holds profound significance for recalibrating the equilibrium between fundamental rights and directive principles in India's constitutional fabric.
  • It will delineate whether laws designed to uphold directive principles, such as acquiring dilapidated buildings for the common good, can withstand challenges based on fundamental rights.
  • This raises fundamental questions regarding the hierarchy of rights and duties within the constitutional framework and the extent to which the state can limit individual liberties for the collective welfare.
• Addressing Ambiguities and Pending Issues: The Property Owners case offers an opportunity for the judiciary to clarify ambiguities surrounding the interpretation and implementation of Article 31C, considering previous judicial precedents.
  • Prior conflicting rulings in cases like Kesavananda Bharati and Minerva Mills have left unresolved queries regarding the validity and scope of Article 31C, particularly concerning its alignment with the Constitution's basic structure.
  • Despite subsequent judgments like Waman Rao and Sanjeev Coke vs Bharat Coking Coal (1982), which followed, the Supreme Court has yet to provide a definitive analysis of Article 31C introduced by the 25th amendment and its compatibility with the Constitution's foundational principles.
  • By offering clarity on these matters, the Supreme Court can foster a more coherent and uniform approach to reconciling the divergent demands of fundamental rights and directive principles.

Conclusion

The verdict in the Property Owners case stands as an opportunity to reinforce the core tenets of equality, liberty, and social justice embedded within the Indian Constitution. By delicately reconciling the safeguarding of individual rights with the advancement of societal well-being, the judiciary holds the key to preserving the integrity of India's constitutional democracy. Such a decision would ensure that principles of justice and fairness remain paramount in the governance of the nation, fostering a more inclusive and equitable society.

Why is it in the News?

The government must put in place measures to regulate standard essential patents before the judiciary causes further damage to India’s manufacturing dreams.

Context:

• The emergence of Standard Essential Patents (SEPs) and their implications for India's telecom manufacturing industry has become a significant policy issue.
• However, the utilization of SEPs by technology firms presents hurdles, potentially jeopardizing India's domestic manufacturing sector.
• Thus, it is crucial to delve into the intricacies of this matter, scrutinizing the role of SEPs, the regulatory challenges they present, and the necessity for regulatory action.

What are Standard Essential Patents (SEPs)?

• EPS are patents indispensable for implementing a technical standard, particularly prominent in industries like telecommunications reliant on standards such as 3G, 4G, and 5G for seamless device and network communication.
• Typically owned by entities or individuals, these patents are vital for guaranteeing the interoperability and compatibility of products and technologies adhering to specific standards.
• Critical for fostering interoperability and competitiveness in the cellular phone market, EPS covers technologies adopted as industry standards.
• Despite their significance, conflicts over EPS licensing and infringement are common, often resulting in legal disputes and negotiations between companies and patent holders to establish equitable licensing terms.

Significance of Essential Patents and Regulatory Hurdles:

• Essential Patents (EPs) such as CDMA, GSM, and LTE serve as the linchpin of technological standards in the telecom industry, ensuring seamless compatibility among various cellular phone brands.
• However, the standard-setting process, predominantly governed by private Standard Setting Organizations (SSOs), limits India's influence in shaping these standards.
• Consequently, owners of EPs may demand excessive royalties, resulting in the "patent holdup" dilemma.
• Although SSOs strive for fair, reasonable, and non-discriminatory (FRAND) licensing, opacity and anti-competitive behaviours persist, as illustrated by substantial fines levied on companies like Qualcomm by multiple jurisdictions.

Judicial Response to Standard Essential Patents (SEPs) Issues:

• Competition Law Enforcement Inertia: The Competition Commission of India (CCI) commenced an inquiry in 2013 upon a complaint by Micromax against Ericsson, alleging SEP licensing abuse.
  • However, Ericsson contested the CCI's jurisdiction, resulting in protracted legal wrangling.
  • Despite a favourable ruling for the CCI in 2016, Ericsson's appeals prolonged the case until a final judgment in 2023.
  • India, due to this prolonged litigation, remains the sole major economy yet to examine potential anti-competitive SEP licensing practices.
• Patent Infringement Cases and Judicial Engagement: While competition law matters linger, the Delhi High Court actively hears lawsuits by SEP owners against cellular phone manufacturers accused of patent infringement.
  • These lawsuits entail intricate trials to ascertain patent validity, infringement, and damages.
  • Rather than pausing proceedings pending competition law resolution, the court issues interim measures favouring SEP owners.
  • Such measures often mandate manufacturers, many of them Indian, to deposit substantial sums with the court for ongoing production during trials.
• Unprecedented "Deposit" Orders: Issuing "deposit" orders, compelling manufacturers to deposit significant funds before trial, is unprecedented in commercial law.
  • These orders, lasting throughout lengthy trials, impose heavy financial burdens on defendants, depriving them of vital working capital.
  • While lacking legal foundation and fairness, the Delhi High Court justifies them using its "inherent powers to ensure justice."
  • This judicial activism, while aimed at expediting legal proceedings, raises concerns about procedural fairness and equitable treatment of litigants.

Impact of Judicial Interventions and Legal Battles on India's Manufacturing Goals:

• Undermining Investor Confidence and Market Stability: Extended legal battles and judicial interventions sow uncertainty, denting investor trust in India's manufacturing sector.
  • Foreign investors may perceive the unpredictable legal environment as a barrier to entering or expanding operations in the nation.
  • Uncertainty regarding SEP licensing practices and potential adverse court rulings disrupts market stability, impeding long-term investment planning for both domestic and international enterprises.
• Stifling Growth and Innovation: SEP-related disputes divert attention and resources away from fostering innovation and technological progress in the telecom manufacturing domain.
  • Rather than directing efforts towards research and development (R&D) or embracing new technologies, companies become entangled in legal disputes, hindering productive pursuits.
  • This diversion of resources curtails innovation, obstructs product development, and undermines India's global competitiveness.
• Impact on Employment and Economy: The manufacturing sector is a vital source of employment and economic advancement, especially in emerging economies like India.
  • However, uncertainties surrounding SEP-related litigation pose a threat to job stability and employment opportunities, particularly in the telecom manufacturing sector.
  • Protracted legal proceedings and financial burdens may compel companies to downsize operations, leading to workforce reductions and inhibiting future investments.
• Policy Inconsistencies: Contradictions arise between judicial rulings favouring SEP owners and government initiatives to incentivize domestic manufacturing.
  • While the government aims to attract investment and bolster indigenous production, SEP-related disputes undermine these objectives.
  • The disconnect between supporting manufacturers and overlooking financial burdens imposed by SEP owners questions the coherence of policies promoting industrial growth.
• Long-term Industrial Landscape Implications: Unresolved tensions surrounding SEP licensing practices and judicial handling of disputes cast shadows over India's industrial future.
  • Failure to address these issues may deter investors, jeopardize job creation, and impede India's transition to a knowledge-based economy.
  • With regulatory intervention to streamline legal processes and ensure fairness, India can catch up to global peers in manufacturing prowess.

Way Forward:

• The European Parliament's proactive stance on regulating SEPs offers valuable lessons for global intervention in this arena.
• Given India's constrained influence in standard-setting and obligations to uphold patents of foreign tech firms, it presents a strong rationale for similar regulatory action.
• Enhancing regulatory frameworks to foster transparency, equity, and non-discriminatory practices in SEP licensing is essential to protect India's economic welfare and foster indigenous manufacturing.

Conclusion

The Indian government must prioritize resolving regulatory uncertainties regarding SEPs to protect domestic manufacturers' interests and drive industrial advancement. Regulatory actions should strive for a harmonious balance between technology firms' interests and overarching goals of economic progress, innovation, and consumer protection. Through decisive intervention, India can assert its autonomy, cultivate fair competition, and cultivate an environment conducive to investment and innovation.

Why is it in the News?

During the ongoing election campaign, there have been intense debates between the ruling government and the Opposition regarding wealth redistribution, while the SC has formed a nine-judge Bench to interpret the DPSP concerning ownership and control of material resources.

Context:

• Congress leader Rahul Gandhi during the Lok Sabha campaign said that there will be a financial survey to determine the distribution of wealth in the country for addressing the issue of inequality.
• The ruling BJP targeted Gandhi and alleged that Congress if elected, would bring back the "socialistic model" of economics and hinder India's growth as an economy.

What is Wealth Redistribution?

• The meaning of wealth redistribution is the transfer of wealth from one individual to another through a social mechanism such as taxation, charity, or public services.
  • One biggest example of wealth redistribution would be income tax wherein higher earnings pay a higher percentage of tax compared to lower-income earners.
• Proponents of this exercise note that wealth redistribution is necessary to bridge the inequality gap between members of society.
• And in India, the gap between the rich and the poor is only growing further.
• As per a recent study, the country’s richest one per cent of the population now owns 40 per cent of the country’s wealth.
• According to the report titled Income and Wealth Inequality in India: The Rise of The Billionaire Raj, and published by The World Inequality Lab, “the inequality gap widened after the economy’s opening up in the early 1990s, but “between 2014-15 and 2022-23, the rise of top-end inequality has been particularly pronounced in terms of wealth concentration”.
  • Based on figures from the World Inequality Database, India’s income inequality is among the very highest in the world, behind only Peru, Yemen and a few other small countries.

What Does India’s Constitution Say on Wealth Distribution?

• The Preamble to the Constitution aims to secure for all citizens social and economic justice, liberty and equality.
• Part III of the Constitution lists down the fundamental rights that guarantee liberty and equality while Part IV contains the DPSP.
• These are principles that the central and State governments should follow to achieve social and economic justice in our country.
• Unlike the fundamental rights in Part III, the DPSP is not enforceable in court.
• They are nevertheless fundamental in the governance of the country.
• Article 39(b) and (c) in Part IV contain principles that are aimed at securing economic justice.
• They provide that ownership and control of material resources of the society should be distributed to serve the common good and that the operation of the economic system does not result in the concentration of wealth to the common detriment.
• India’s Constitution-makers haven’t explicitly spoken of wealth redistribution.
• It’s noteworthy that when Article 39 (Draft Article 31) was being added to the Constitution, it was heavily debated.
• The economist KT Shah wanted the Constitution to outrightly prevent the creation of monopolies in industries.
• In agreement with him was Shibban Lal Saxena, who wanted it to be explicitly put down that the State shall control a few key industries.
• However, there were others Naziruddin Ahmad, who were not comfortable with the Constitution endorsing contested political and economic ideologies.

What is the Historical Context of the Redistribution of Wealth?

• The Constitution originally guaranteed the right to property as a fundamental right under Article 19(1)(f).
• It is provided under Article 31 that the state shall pay compensation in case of the acquisition of private property.
  • It is pertinent to note that at the time of independence, the main property rights related to agricultural and other land.
  • The government had to acquire the rights in such estates for carrying out land reforms and the construction of public assets.
• Considering the inadequate resources of the government and in order to provide greater flexibility in acquiring land for public welfare, various amendments were carried out curtailing the right to property.
• The Supreme Court in various cases has interpreted the relationship between fundamental rights and the DPSP.
  • Most of these cases were against constitutional amendments made by the state that curtailed the right to property which was then a fundamental right.
  • In the Golak Nath case (1967), the Supreme Court held that fundamental rights cannot be abridged or diluted to implement DPSP.
  • Finally, in the Kesavananda Bharati case (1973), a thirteen-judge Bench of the Supreme Court upheld the validity of Article 31C but made it subject to judicial review.
  • In the Minerva Mills case (1980), the Supreme Court ruled that the Constitution exists on a harmonious balance between fundamental rights and DPSP.
• In 1978, in order to avoid excessive litigation directly in the Supreme Court by the propertied class, the 44th Amendment Act omitted the right to property as a fundamental right and made it a constitutional right under Article 300A.
  • The right to private property continues to be an important constitutional cum legal right.
  • Any law to acquire private property by the state should be only for a public purpose and provide adequate compensation.

What is the Current Debate on the Redistribution of Wealth?

• The government of India in the first four decades after independence followed a “socialistic model” of economy.
• The economic policies resulted in the nationalisation of banking and insurance, extremely high rates of direct taxes (even up to 97%), estate duty on inheritance, tax on wealth etc.
• The rationale behind these measures during those times was to reduce inequality and redistribute wealth among the poorer sections that constituted the majority of the population.
• However, such measures stifled growth and also resulted in the concealment of income/wealth.
• Taxes like estate duty and wealth tax generated revenue that was much less than the cost incurred in administering them.
• The nineties saw the country move from a closed economy towards liberalisation, globalisation and privatisation.
• A new industrial policy was unveiled in 1991 with the objective of empowering market forces, improving efficiency and rectifying deficiencies in the country’s industrial structure.
• Estate duty was abolished in 1985 and wealth tax in 2016.
• The market-driven economy has resulted in additional resources for the government that has helped in bringing people out of abject poverty.
• Nonetheless, this economic system has also resulted in growing inequality.
• A report by the World Inequality Lab states that the top 10% of the country’s population have a share of 65% and 57% of the wealth and income respectively as of 2022-23.
• The bottom 50% on the other hand have a meagre share of 6.5% and 15% of the wealth and income respectively.
• The manifesto for the current Lok Sabha elections of the Congress promises that there will be a financial survey to ascertain the distribution of wealth among the people in the country and address the issue of inequality.
• The ruling party campaigners led by the PM have targeted the Opposition on this matter.
• The SC meanwhile has constituted a nine-judge Bench to interpret whether material resources under Article 39(b) include private resources as well.

Way Forward:

• Growing inequality is a worldwide problem of a liberalised open-market economic system.
• It is the responsibility of the government to protect the interest of the poorer classes who are most dependent on the state machinery for their livelihood.
• At the same time past policies of extremely high tax rates, estate duty, wealth tax etc., did not achieve their desired goals. Instead, they only led to the concealment of income and wealth.
• Innovation and growth should not be curtailed but the benefits of growth should reach all sections especially the marginalised.
• It's essential to design inclusive policies through informed debates, aligning with current economic models, to ensure that the benefits of growth reach marginalized sections, in line with the constitutional principle of economic justice for all.

Conclusion

The debate on wealth redistribution in India underscores the complex challenge of balancing economic growth with equitable resource allocation. While past policies have had mixed results, it remains essential for the government to protect vulnerable populations and promote inclusive growth. To achieve this, policymakers must foster innovation while ensuring the benefits reach marginalized communities. By designing policies aligned with current economic models and adhering to the constitutional principle of economic justice, India can work towards a future where growth and social equity coexist harmoniously.

Why is it in the News?

Former Election Commissioner Ashok Lavasa points out that a significant gap in the present framework is that the Model Code of Conduct for elections has not spelled out the consequences of defaults, thus diluting its deterrent effect.

Context:

• The Model Code of Conduct (MCC) plays a pivotal role in India's electoral process, having evolved considerably since its inception to uphold fairness in elections.
• While originally crafted to regulate conduct during elections, the MCC faces new hurdles in today's dynamic political environment.
• Hence, it becomes imperative to delve into the historical progression of the MCC, identify existing deficiencies, and suggest strategies to bolster its implementation.

Evolution of the Model Code of Conduct (MCC):

• Kerala was the first state to adopt a code of conduct for elections.
• In 1960, ahead of the Assembly elections in the state, the administration prepared a draft code that covered important aspects of electioneering such as processions, political rallies, and speeches.
• It was only in 1974, just before the mid-term general elections, that the EC released a formal MCC.
• It also set up bureaucratic bodies at the district level to oversee its implementation.
• So the EC, just before the 1979 Lok Sabha elections, released a revised Model Code with seven parts, with one part devoted to the party in power and what it could and could not do once elections were announced.
• The MCC has subsequently evolved as an integral part of conducting fair and free elections.

Challenges Faced by the MCC and the Imperative for Strengthening Enforcement:

• Escalating Violations: Political parties and candidates routinely flout the MCC's regulations, engaging in activities like hate speech, vote-buying, and spreading misinformation, undermining the trust in the electoral process and compromising its fairness and transparency.
• Exploitation of Loopholes: In today's political landscape, there's a discernible trend of exploiting MCC loopholes to bypass its regulations.
  • With the advent of technology and social media, political entities find novel ways to propagate propaganda and target voters, evading traditional MCC constraints and necessitating revisions to address these evolving challenges.
• Inadequate Deterrents: While the MCC sets ethical standards, it often lacks effective penalties for violations, resulting in politicians perceiving minimal risks in flouting its provisions.
  • Strengthening the MCC entails imposing clear and proportionate penalties for transgressions to foster a culture of accountability.
• Complexity of Enforcement: India's vast and diverse electoral terrain, coupled with a surge in reported violations, strains the Election Commission's enforcement capabilities.
  • Adjudicating MCC breaches can be arduous and resource-intensive, leading to accountability delays. Streamlining enforcement procedures and enhancing the EC's capacity is pivotal for ensuring prompt and efficient MCC implementation.
• Erosion of Public Trust: Widespread disregard for ethical norms and regulations can erode citizens' trust in the democratic process, fostering voter apathy and disenchantment.
  • Restoring public confidence in elections necessitates robust measures to strengthen the MCC and underscore the EC's dedication to upholding electoral integrity.

Proposed Reforms to Enhance MCC Enforcement:

• Clear and Comprehensive Guidelines: The initial step towards MCC reform entails establishing clear and comprehensive guidelines delineating permissible and impermissible conduct during electoral campaigns.
  • Regular updates to these guidelines are crucial to address evolving challenges and technological advancements, enabling political entities to navigate ethical standards effectively and prevent inadvertent violations.
• Strict Enforcement Mechanisms: Implementation of proportional penalties for infringements, such as fines, campaigning bans, and withdrawal of electoral symbols, constitutes a vital aspect of reform.
  • Streamlining enforcement procedures by the Election Commission (EC) ensures swift adjudication of cases, bolstering the MCC's credibility and deterrent impact.
• Indirect Liability for Political Parties: Imposing penalties on parties for MCC violations, irrespective of individual culpability, incentivizes enhanced oversight over members' conduct.
  • This fosters collective responsibility within political organizations, promoting greater accountability and ethical governance.
• Transparency and Public Accountability: Maintaining a publicly accessible database documenting all reported MCC violations and their dispositions empowers citizens to monitor regulatory compliance.
  • This transparency holds political actors accountable for their actions, reinforcing public trust in the electoral process.
• Timely and Credible Adjudication: Prioritizing prompt resolution of violations and ensuring impartial decision-making by the EC are essential to uphold the MCC's deterrent effect.
  • Timely adjudication prevents erosion of public confidence and underscores the EC's commitment to fair electoral practices.
• Continuous Evaluation and Revision: Vigilance in identifying areas for improvement and updating the MCC in response to emerging challenges and evolving electoral dynamics is crucial.
  • This iterative approach ensures the MCC remains relevant and effective in safeguarding India's electoral integrity.

The Role of Political Parties and Election Commission in Safeguarding Electoral Integrity:

Political Leadership's Responsibility:

• Political leaders wield significant influence in upholding electoral integrity by adhering to ethical standards and fostering responsible conduct within their parties.
• By exemplifying ethical leadership, politicians can instill a culture of integrity and accountability among their supporters and party members.
• Effective self-regulation within political parties is imperative to minimize MCC violations and preserve the integrity of electoral campaigns.
• Through a commitment to fairness, transparency, and democratic principles, leaders can instill confidence in the electoral process and encourage civic engagement among voters.

The Election Commission's Mandate:

• As the guardian of electoral integrity, the Election Commission plays a pivotal role in impartially adjudicating MCC violations and enforcing electoral regulations.
• Timely and decisive enforcement of the MCC is crucial for deterring violations and upholding the integrity of electoral campaigns.
• Maintaining transparency in its actions and decisions related to MCC enforcement is essential for the EC to uphold public accountability.
• By providing regular updates on reported violations, adjudication outcomes, and enforcement measures, the EC fosters public trust in its ability to safeguard electoral integrity.
• Enhancing the EC's capacity for MCC enforcement is paramount for effectively addressing emerging challenges and ensuring the integrity of electoral processes.
• This includes investing in training programs, technological infrastructure, and human resources to enable the EC to adapt to evolving electoral dynamics and enforce regulations effectively.

Conclusion

While the Model Code of Conduct (MCC) serves as a crucial bulwark against electoral misconduct, its effectiveness hinges on vigorous enforcement and adaptability to evolving scenarios. Through the adoption of suggested reforms and the cultivation of ethical leadership, India can fortify the integrity of its democratic mechanisms, guaranteeing equitable and transparent elections for its populace.

Why is it in the News?

The amended rules will prolong the life of drugs on account of frivolous patenting, increase their prices, and make lives difficult for patients.

Context:

• India's healthcare system depends largely on accessible medications, with the generic pharmaceutical sector crucial for delivering quality drugs at affordable rates.
• The expense of medicines represents a substantial part of healthcare spending, with almost half of individuals' medical costs dedicated to purchasing prescriptions.
• Yet, the considerable expenses associated with medications, largely influenced by patenting, create significant hurdles for obtaining vital treatments.

What is the Role of Generic Pharmaceutical Companies?

• Generic pharmaceutical companies are pivotal in addressing the challenge of affordability by offering cost-effective alternatives to patented drugs.
• India's generic industry has earned global recognition for its role in providing essential medications at accessible prices.
• The development of India's patent laws has significantly influenced its pharmaceutical sector and its capacity to produce generic drugs.
  • Initially, the Indian Patent Act of the early 1970s limited patent protection to the manufacturing processes rather than the products themselves.
  • This approach facilitated the growth of the generic industry, positioning India as a major exporter of generic drugs by the late 1980s.
• However, recent revisions to the Indian Patent Law pose a threat to this ecosystem and jeopardize access to affordable healthcare.

What is the Impact of the TRIPS Agreement on India's Pharmaceutical Industry?

• The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, introduced in 1995, had a significant impact on India's pharmaceutical sector, shaping its development and global position. Key aspects of this impact include:
• Transition to Product Patents: A critical change brought by TRIPS was the requirement for member countries to grant patents for both products and processes, including pharmaceuticals.
  • This shift from process to product patents posed challenges for India's thriving generic pharmaceutical industry, which had previously capitalized on producing affordable versions of patented drugs.
• Challenges for India's Generic Industry: The introduction of product patents threatened India's generic pharmaceutical sector, renowned for its capacity to manufacture low-cost essential medicines.
  • These patents granted exclusive rights to inventors, restricting generic manufacturers' ability to produce and distribute affordable alternatives.
• Pressure to Comply with International Standards: The TRIPS Agreement pressured India to align its intellectual property laws with international standards, encompassing pharmaceutical patent protection.
  • This necessitated amendments to India's Patent Act to comply with TRIPS obligations while preserving the interests of its generic pharmaceutical industry and public health priorities.
• Preserving Access to Medicines: Despite TRIPS challenges, India implemented measures to safeguard access to affordable medicines.
  • Provisions like Section 3(d) of the Indian Patent Act, introduced in 2005, aimed to prevent granting frivolous patents for incremental innovations lacking significant therapeutic benefits.
  • This ensured compliance with TRIPS requirements while maintaining access to affordable medicines.
• Balancing Innovation and Access: The TRIPS Agreement presented India with the challenge of balancing innovation and access to essential medicines.
  • While patents incentivize innovation and investment in research and development, they can restrict access to life-saving treatments, particularly in developing countries with limited healthcare resources.
• Global Leadership in Generic Manufacturing: Despite the challenges posed by TRIPS, India emerged as a global leader in generic drug manufacturing.
  • Leveraging its manufacturing capabilities and adherence to TRIPS flexibilities, the country's generic pharmaceutical industry continued to thrive, supplying affordable medicines domestically and globally.

What is Section 3(d) of India's Patent Act?

• Section 3(d) is a crucial provision in India's Patent Act that exemplifies the flexibilities embedded within the country's patent laws.
  • It tackles concerns related to "evergreening"—a practice used by pharmaceutical companies to extend patent life through minor modifications or incremental innovations.
• The primary objective of Section 3(d) is to prevent the granting of patents for incremental innovations that lack significant therapeutic efficacy or novelty.
  • By doing so, it aims to protect access to generic versions of essential medicines and promote affordability.
• Under Section 3(d), pharmaceuticals and chemical substances are eligible for patent protection only if they demonstrate enhanced efficacy compared to existing formulations.
  • This requirement ensures that patents are granted for inventions representing genuine advancements in therapeutic efficacy rather than minor modifications or variations of existing drugs.
• Through Section 3(d), India's patent laws strike a balance between innovation and public health priorities, contributing to the overall well-being and access to medicines for its citizens.

What are the Contemporary Challenges in India's Patent Regime?

• India's patent regime currently faces several challenges, including issues related to pre-grant opposition, competition, international trade agreements, and flexibilities in patent law. These challenges have implications for access to affordable medicines, the financial burden on patent opponents, and drug availability.
• Threats to Pre-Grant Opposition: Amendments to the Indian Patent Rules have made filing opposition to patents at the pre-grant stage more challenging.
  • This change could lead to granting patents for inventions lacking genuine novelty or therapeutic efficacy.
• Impact on Competition and Drug Prices: Limitations to the pre-grant opposition process may stifle competition in the pharmaceutical market and contribute to higher drug prices.
  • By hindering generic manufacturers and civil society organizations from challenging frivolous patents, the amendments impede the availability of affordable generic drugs.
• Pressure from Pharma Majors and International Trade Agreements: These amendments reflect pressure from multinational pharmaceutical corporations, particularly Western and Japanese companies, seeking to align India's patent rules with their interests.
  • Their lobbying efforts aim to weaken India's patent regime, facilitating patent grants for incremental innovations and extending market exclusivity for their products.
• Threats to Flexibilities in Patent Law: Amendments to India's patent rules threaten the flexibilities inherent in its patent law, including provisions such as Section 3(d) that set stringent patentability criteria based on enhanced efficacy.
  • Weakening these provisions undermines India's capacity to protect public health priorities and promote access to affordable medicines.
• Financial Burden on Opponents of Patents: Imposing fees on patent opponents could deter patients, civil society organizations, and generic manufacturers from filing pre-grant oppositions.
  • This financial burden limits stakeholders' ability to safeguard public health interests and promote affordable medicines.
• Impact on Compulsory Licensing and Drug Availability: The amendments also affect the issuance of compulsory licenses, crucial for ensuring access to medicines when patents hinder availability.
  • By weakening provisions that enable compulsory licensing and limit evergreening, the amendments impede efforts to address healthcare disparities and promote equitable access to essential medicines.

Conclusion

Access to affordable medicines is vital for public health and universal healthcare. Policymakers must preserve patent law flexibilities, promote competition, and protect patient interests to ensure healthcare systems uphold affordability, accessibility, and quality. Amendments to India's Patent Rules should balance innovation, intellectual property rights, and societal well-being, mitigating negative impacts on essential medicines and public health outcomes.

Why is it in the News?

The case involving DMRC (Delhi Metro Rail Corporation) and DAMEPL (Delhi Airport Metro Express Pvt Ltd) which has been in and out of courts for over a decade, has concluded with the Supreme Court verdict on April 10.

Context:

• On April 10, the Supreme Court delivered its verdict on the case concerning the Delhi Metro Rail Corporation (DMRC) and Delhi Airport Metro Express Pvt Ltd (DAMEPL), bringing it to a close.
• This ruling holds exceptional importance within the legal sphere, setting a notable precedent for arbitration tribunals and courts.
• Moreover, it carries significant implications for public service delivery via partnership models and demonstrates effective litigation strategies for infrastructure projects, contributing to India's future resilience.

What is the Dispute Between DMRC and DAMPEL?

• The dispute between the Delhi Metro Rail Corporation (DMRC) and Delhi Airport Metro Express Pvt Ltd (DAMEPL) arises from the development and operation of the Airport Metro Express Line, a crucial infrastructure project in India's capital city, which began operations in 2011.
• The partnership between DMRC and DAMEPL followed a public-private partnership (PPP) model, where DMRC was responsible for constructing civil structures such as tunnels, viaducts, and station buildings, while DAMEPL was in charge of laying tracks, overhead equipment, signaling, and procuring rolling stock.
• Problems arose shortly after the line became operational.
  • In 2012, DAMEPL suspended operations on the line, citing defects in the civil engineering works executed by DMRC.
  • DAMEPL claimed that these defects compromised safety and functionality and demanded that DMRC rectify the issues within 90 days, threatening to treat the situation as a material breach of the agreement and terminate the contract if not addressed.
• DMRC attempted to resolve the issues through conciliation proceedings, but these efforts proved unsuccessful.
  • Consequently, DAMEPL issued a notice of termination, asserting that DMRC had failed to remedy the defects.
  • This led to a breakdown in the relationship between the two parties and prompted legal battles.
• Despite the challenges, DMRC and DAMEPL submitted a joint application in November 2012 to the commissioner of metro rail safety for inspection and permission to restart operations.
  • Train services were eventually restored on the line by DAMEPL in 2013, with train speeds on the line increasing to 80 km/h. However, in June of the same year, DAMEPL announced its unwillingness to continue operating the line and ceased operations almost immediately.
• Recognizing the importance of the metro line for the public, DMRC stepped in to operate the nearly abandoned Airport Metro Express Line.
  • DMRC resumed train operations and provided other ancillary services to maintain public transportation on the line.
  • This intervention prevented a complete suspension of services and ensured continuity for commuters.

Findings of the Arbitration Tribunal:

• The tribunal awarded DAMEPL Rs 2,782 crore with interest after concluding that the termination notification was legitimate.
• In 2018, the Delhi High Court's single-judge bench maintained the award notwithstanding DMRC's protest.
• The Division Bench of the Delhi High Court, responding to DMRC's appeal, criticized the arbitral tribunal's methodology, pointing out errors such as failing to consider safety considerations and failing to read contractual provisions. As a result, the arbitration decision was revoked.

Supreme Court's Intervention and Final Judgement:

• Both DMRC and DAMEPL appealed to the Supreme Court through special leave petitions, leading to a significant legal process.
• Initially, the Supreme Court overturned the High Court's ruling and reinstated the arbitral award in 2021.
• However, following DMRC's curative petition, the Supreme Court revisited the case.
• After a thorough examination, considering various factors including factual background and tribunal decisions, the Court found significant errors in the arbitral award.
• Concluding that the award lacked coherence and resulted in serious injustice, the Court upheld the Division Bench's decision, deeming the award as flawed and illegal.
• This reversal of its earlier decision restored the parties to the status quo as per the Division Bench's judgment.

Importance of the Supreme Court Verdict:

• Establishing Precedent for Arbitration: The verdict sets a precedent for arbitration tribunals and courts, outlining the meticulous scrutiny required for arbitral awards.
  • It underscores the importance of coherence and evidence-based reasoning in such decisions, ensuring fairness and consistency in dispute resolution.
• Ensuring Fairness and Justice: By reinstating the parties to the status quo as per the Delhi High Court Division Bench's judgment, the Supreme Court prioritizes fairness and justice in public-private partnership (PPP) projects.
  • This safeguards public utilities from undue financial strain and upholds the interests of all stakeholders involved in contractual disputes.
• Promoting Accountability and Due Diligence: The ruling emphasizes accountability in infrastructure projects, stressing the need for due diligence and adherence to contractual obligations.
  • It underscores the responsibility of all PPP participants to act in good faith, particularly in managing critical public infrastructure, thereby fostering transparency and integrity.
• Guiding Future Infrastructure Ventures: The judgment provides clarity for pending cases, especially in the infrastructure domain, offering a roadmap for handling disputes arising from PPP agreements.
  • It ensures that future projects benefit from transparent and equitable dispute resolution mechanisms, enhancing the efficiency and credibility of infrastructure development efforts.
• Boosting Confidence in PPPs: By reaffirming the judiciary's commitment to legal integrity and fairness, the ruling instills confidence in both public and private entities engaging in PPPs.
  • This confidence is essential for attracting investment in infrastructure projects, driving economic growth, and modernizing India's infrastructure landscape.

Conclusion

The prolonged legal conflict between DMRC and DAMEPL highlighted the complexities and challenges inherent in PPP projects, spanning over a decade with various assertions from both sides. This case serves as a testament to the judiciary's pivotal role in preserving equity and integrity within PPP ventures, crucial for advancing the nation's infrastructure. Furthermore, it underscores the significance of adhering to principles of fairness in contractual disagreements and the enduring influence of legal precedents on the trajectory of public-private collaborations

Why is it in the News?

In August 2023, India enacted its first comprehensive data protection law, the Digital Personal Data Protection (DPDP) Act, 2023, with the government currently in the process of formulating rules and regulations for its implementation, anticipated to conclude post the general election.

Context:

• In August 2023, India introduced its first comprehensive data protection law, the Digital Personal Data Protection (DPDP) Act, 2023.
• While aimed at safeguarding personal data, its impact on journalistic freedom warrants examination, as the absence of exemptions for journalistic activities may threaten the foundational principles of a free press.

Provisions of Digital Personal Data Protection (DPDP) Act:

• The Digital Personal Data Protection (DPDP) Act, 2023 is a landmark legislation aimed at regulating the collection, processing, storage, and use of personal data in India.
• The Act establishes a comprehensive framework for lawful and transparent handling of personal data, seeking to safeguard individuals' privacy and data rights.

Key provisions of the DPDP Act, 2023 include:

• Definition of personal data: Any information capable of identifying an individual, directly or indirectly.
• Principles of data protection: Lawfulness, fairness, transparency, purpose limitation, data minimisation, accuracy, storage limitation, integrity, confidentiality, and accountability.
• Data handlers: Distinction between data fiduciaries (determining processing purpose and means) and data processors (processing data on behalf of fiduciaries).
• Consent: Requirement for explicit consent before processing personal data, with provisions for withdrawal.
• Individual rights: Access, correction, erasure, and transfer of personal data.
• Data localisation: Potentially mandating the storage and processing of certain sensitive data within India.
• Oversight: Establishment of a Data Protection Board to monitor compliance and resolve grievances.
• Non-compliance: Penalties and sanctions, including fines and legal consequences for violations.
• Cross-border data transfers: Ensuring data protection standards comparable to India's when transferring data across borders.
• Obligations for data fiduciaries and processors: Security measures, data breach notifications, and data impact assessments.
• The DPDP Act, 2023 represents a significant step towards upholding individual privacy rights in India and ensuring responsible data management by government entities, organisations, and individuals alike.

Journalistic Exemptions in Data Protection Laws:

• Traditionally, data protection laws include exemptions for journalistic activities, allowing journalists to access and report on personal data without consent for investigative purposes.
  • These exemptions ensure freedom of the press and facilitate accountability in society.
• However, the Digital Personal Data Protection (DPDP) Act, 2023 does not provide such exemptions.
  • Previous drafts of the Act, including versions released by an expert committee on data protection (2018), the government (2019), and a Joint Parliamentary Committee (2021), contained provisions for journalistic activities.
• The unexplained removal of these exemptions in the DPDP Act's final iterations (2022 and 2023) raises concerns over potential negative impacts on journalism and its role in maintaining transparency and accountability.
  • Addressing this absence of journalistic exemptions will be crucial to upholding the freedom of the press and protecting the public's right to information.

Challenges for Journalists under the DPDP Act:

• Consent Requirements: Journalists are now obligated to secure consent from individuals before utilizing their personal data in news stories.
  • This could impede investigative reporting, as subjects may refuse consent, thereby obstructing access to crucial information.
• Right to Erasure: The right to erasure permits individuals to demand the deletion of published stories containing their personal data.
  • This provision may result in the removal of significant investigative work, undermining transparency.
    • For instance, when reporting on a Member of Parliament (MP) and their activities, journalists often gather information such as meeting details, travel itineraries, and familial financial investments, all of which constitute personal data under the DPDP Act.
• Obtaining consent for such data usage poses challenges, and even after publication, MPs can invoke the right to erasure, compelling journalists to delete pertinent stories.
• Government Oversight: The Act grants the government authority to request information from data processors, potentially compromising the confidentiality of journalists' sources and research materials.
  • This governmental oversight may curtail the press's capacity to hold the state accountable.

Addressing Concerns and Potential Solutions for Journalistic Freedoms under the DPDP Act:

• To ensure a balanced approach that protects personal data while preserving journalistic freedoms, addressing the concerns raised by the Digital Personal Data Protection (DPDP) Act is essential.
• The following solutions could help achieve this goal:
• Transparent Consultation: The removal of exemptions for journalistic activities highlights the need for open and transparent public consultations.
  • Although drafts of the DPDP Act were released for public input, the comments received were not made publicly available.
  • Greater transparency in the consultation process would enable better comprehension of stakeholder perspectives and inform more effective law-making.
• Exemptions for Journalists: The central government should consider using its rule-making powers under the DPDP Act to exempt journalistic entities, including citizen journalists, from specific obligations within the Act.
  • This exemption would protect the freedom of the press and encourage a transparent and open environment for journalism.
• Public Consultation: Implementing an open, transparent, and robust public consultation process could facilitate better understanding and consideration of various viewpoints.
  • This approach would lead to a more balanced and effective data protection law that upholds both personal data privacy and freedom of the press.

Conclusion

The Digital Personal Data Protection (DPDP) Act, 2023, is an essential step towards safeguarding personal data in India. However, its potential impact on journalistic free speech raises significant concerns that must be addressed.

To strike a balance between protecting individual privacy and upholding the fundamental principles of a free press, the government should consider implementing exemptions for journalists and fostering transparent consultation processes. These measures would enable a harmonious coexistence of personal data protection and journalistic freedoms, ensuring that both critical elements thrive in India's democratic landscape

Why is it in the News?

When climate activist Sonam Wangchuk took the stage in Leh, Ladakh recently, addressing a gathering of 30,000 individuals, his announcement of a 21-day climate fast resonated not only with the people of Ladakh but also with a global audience.

Context:

• The Himalayan region, situated between India's neighbors Pakistan and China, encompasses Ladakh, where 97% of the population comprises indigenous tribes whose livelihoods primarily depend on agriculture and animal husbandry.
• Despite its breathtaking beauty, this region grapples with various challenges, including the adverse effects of climate change, border tensions, and a surge in large-scale infrastructure projects.
• As climate activist Sonam Wangchuk leads protests and fasts, it becomes imperative to grasp the broader context of the Himalayan ecosystem's vulnerability.

The Climate Change Challenge in the Himalayan Region:

• Extreme Weather Events: Climate change manifests in more frequent and severe weather phenomena like heavy rainfall, cloudbursts, and flash floods.
  • These events trigger landslides, wreaking havoc on mountain communities by damaging infrastructure, crops, and property, and endangering lives.
• Shifts in Monsoon Patterns: The region heavily relies on monsoon rains for agriculture and water supply.
  • Climate change-induced alterations in monsoon patterns disrupt rainfall timing, intensity, and distribution, jeopardizing agricultural cycles and economic stability.
• Temperature Rise: Elevated temperatures impact both mountain and downstream ecosystems.
  • Snowmelt patterns alter, local biodiversity faces disturbance, and traditional farming and animal husbandry practices suffer.
• Melting Glaciers: The Himalayas, often dubbed the Third Pole, harbor approximately 15,000 glaciers crucial to regional hydrology.
  • These glaciers feed vital rivers like the Indus, Ganga, and Brahmaputra, serving as lifelines for millions downstream.
  • However, accelerated glacier melt due to global warming poses threats such as rising river levels, heightened flood risks, and potential water scarcity.
• Loss of Biodiversity: The Himalayan region hosts diverse flora and fauna, including many endemic species.
  • Climate change threatens this unique biodiversity through habitat loss, altered migration routes, and ecosystem stress.
• Livelihood Impacts: Indigenous tribes and rural communities depend on farming and animal husbandry.
  • Climate change-induced disruptions, such as erratic weather and natural disasters, challenge their traditional livelihoods.

National Mission for Sustaining the Himalayan Ecosystem (NMSHE):

• The National Mission for Sustaining the Himalayan Ecosystem (NMSHE) is one of the eight missions under the National Action Plan on Climate Change (NAPCC).
• NMSHE is a multi-pronged, cross-cutting mission across various sectors.
  • It contributes to the sustainable development of the country by enhancing the understanding of climate change, its likely impacts, and adaptation actions required for the Himalayas- a region on which a significant proportion of India’s population depends for sustenance.
• NMSHE seeks to facilitate the formulation of appropriate policy measures and time-bound action programs to sustain ecological resilience and ensure the continued provisions of key ecosystem services in the Himalayas.
  • NMSHE intends to evolve suitable management and policy measures for sustaining and safeguarding the Himalayan ecosystem along with developing capacities at the national level to continuously assess its health status.
• Recognizing the importance of scientific and technological inputs required for sustaining the fragile Himalayan Ecosystem, the Ministry of Science and Technology has been given the nodal responsibility of coordinating this mission.
  • However, the mission involves valuable cooperation of the Indian Himalayan States, the Planning Commission, and the Ministry of Environment, Forests and Climate Change to achieve its goals.

NMSHE's Role in Preserving the Himalayan Region:

• Accelerated Infrastructure Development: Since Ladakh transitioned to a Union Territory, numerous large-scale infrastructure projects have been rapidly implemented, including road expansions, bridge constructions, tunnel installations, railway lines, and solar energy initiatives.
  • These endeavors, driven by entities such as the Border Roads Organisation (BRO) and the National Highways & Infrastructure Development Corporation Ltd. (NHIDCL), focus on promoting tourism and industrial growth.
• Oversight of Previous Disasters: Despite past calamities in the Himalayan region, such as the catastrophic 2013 Kedarnath floods, and more recent incidents like the 2023 Joshimath disaster and the Silkyara tunnel collapse, there appears to be minimal reflection on previous warnings.
  • Expert committees have advocated for limitations on pilgrim numbers and constraints on hydroelectric projects in ecologically fragile areas, but these recommendations have often been disregarded.
• Insufficient Attention to Concerns: Climate change activists have raised concerns about the inadequate consideration given to their suggestions, with little to no scrutiny conducted before approving multi-crore infrastructure projects.
  • Worries regarding risk assessment, safety protocols, and geological evaluations seem to be overlooked in the pursuit of rapid development.

How to preserve the Himalayan Ecosystem Safe?

• Sustainable Development Practices: Conduct comprehensive environmental impact assessments before embarking on development projects to gauge potential ecosystem repercussions.
  • Design projects with a focus on minimizing environmental harm and adhering to sustainability standards.
  • Implement infrastructure projects with measures to reduce environmental disruption, such as using sustainable materials and employing low-impact construction methods.
• Focused Policies on Biodiversity Conservation: Expand and fortify protected areas like national parks and wildlife sanctuaries to safeguard the region's diverse flora and fauna.
  • Establish and maintain wildlife corridors to facilitate safe animal migration and preserve genetic diversity, thus mitigating the risk of species extinction.
• Community Involvement: Integrate traditional knowledge and practices of local communities into conservation initiatives to ensure cultural relevance and long-term sustainability.
  • Empower local communities to actively participate in conservation efforts, fostering greater engagement and ownership over preservation endeavors.
• Climate Change Mitigation and Adaptation: Implement strategies to curb greenhouse gas emissions, such as promoting renewable energy sources and combating deforestation, to mitigate climate change impacts.
  • Support adaptation measures for local communities, including crop diversification and enhanced water management, to help them cope with evolving climate conditions.
• Research and Monitoring: Continuously monitor the Himalayan ecosystem, including its flora, fauna, and physical processes, to detect early signs of ecological changes and inform conservation strategies.
  • Encourage interdisciplinary research on the region's ecology, climate, and geology to deepen understanding of ecosystem challenges and identify effective solutions.

Conclusion

It's crucial to recognize that while development is vital for economic progress, it should not be pursued at the cost of environmental harm and human well-being. The Himalayan region, renowned for its unparalleled biodiversity and rich cultural heritage, warrants thoughtful preservation and conservation efforts. It is incumbent upon all stakeholders to collectively assume the responsibility of safeguarding the future of this ecologically and culturally significant area.

Why is it in the News?

The ‘National One Health Mission’ is the result of the recognition that only a coordinated approach will ensure a better response to disease outbreaks.

Context:

• In recent times, the intricate relationship among humans, animals, and the environment has gained significant attention, especially in light of the emergence of pandemics like COVID-19.
• This interconnectedness is underscored by the impact of diseases such as lumpy skin disease, which affects both livestock productivity and trade, bridging the gap between domesticated and wild animal health.
• Addressing these complex challenges, the Indian government has launched the 'National One Health Mission,' aimed at comprehensively tackling the interlinked domains of human, animal, and environmental health.

What is One Health?

• One Health is an integrating idea that brings different sectors together to solve the health, productivity, and conservation challenges and has major implications for India.
  • It is a global topic and was endorsed during India's presidency of the G-20.
• India with its diverse wildlife, one of the largest livestock populations, and high density of human population, carries heightened risks for inter-compartmental spread of diseases.
• The Covid pandemic, recent outbreaks of Lumpy Skin Disease in cattle, and the constant threat of Avian Influenza show that it is not just about addressing diseases from the human health point of view (zoonosis) but we need to address the livestock and wildlife aspects.
• This also opens opportunities for leveraging the complementarity and strengths that are inherent in each sector and devising integrated, robust, and agile response systems.

What is the National One Health Mission?

• Initiated in July 2022, the National One Health Mission represents a comprehensive endeavor endorsed by the Prime Minister's Science, Technology, and Innovation Advisory Council (PM-STIAC).
• With the participation of 13 ministries and departments, including the Department of Science and Technology, the Department of Biotechnology (DBT), and the Council of Scientific and Industrial Research (CSIR), among others, this mission adopts a holistic approach towards One Health and pandemic preparedness.
• A pivotal achievement within this mission is the establishment of the National Institute for One Health in Nagpur.
• Functioning as the central coordinating body for both national and international One Health endeavors, this institute marks a significant milestone in the mission's implementation.
• On December 11, 2022, the foundation stone of the institute was laid by the Prime Minister, symbolizing the commitment to advancing the principles of One Health and enhancing pandemic preparedness.

Objectives and Approaches of The National One Health Mission:

• Seamless Surveillance Integration: The mission endeavors to establish an integrated surveillance system that seamlessly monitors health indicators across human, animal, and environmental sectors.
  • By amalgamating data from these domains, it can swiftly identify potential health hazards and respond proactively.
• Coordinated Outbreak Management: Recognizing the necessity of a unified approach in outbreak response, the mission aims to institute protocols and frameworks facilitating collaboration among various sectors.
  • This coordinated effort enables effective resource and information sharing to mitigate the impact of diseases affecting multiple domains.
• Collaborative Research and Development: Through fostering collaboration among scientific research institutions and government bodies, the mission fosters the development of innovative solutions for emerging health threats.
  • This includes the creation of vaccines, therapeutics, and diagnostics critical for pandemic preparedness and response.
• Seamless Information Exchange: Effective communication and data sharing are imperative for a unified One Health approach.
  • The mission endeavors to facilitate seamless information exchange between sectors and stakeholders, ensuring timely and informed actions.
• Preparedness for Future Pandemics: Building on past pandemic experiences, the mission seeks to develop strategies and frameworks to enhance the country's readiness for future health crises.
  • This involves proactive planning for potential pandemics and emerging diseases such as avian influenza or Nipah virus.
• Resource Optimization: By leveraging the resources and expertise of multiple sectors and stakeholders, the mission aims to optimize resource utilization, including laboratory infrastructure, healthcare facilities, and scientific research capabilities.
  • This collaborative effort enhances efficiency and cost-effectiveness in addressing health threats.
• Public Health Education and Awareness: The mission includes public education initiatives to raise awareness about the interconnectedness of human, animal, and environmental health.
  • Promoting an understanding of One Health principles encourages healthier behaviors and better preparedness for health emergencies.

Critical enabling activities of the One Health Mission:

• The outcomes of the One Health Mission will be supported by critical enabling initiatives.
• Many of these initiatives are ongoing and will be strengthened under the mission and several new activities that will facilitate the goals of the mission will be undertaken.?

Leveraging Laboratory Networks and Technological Integration in India's National One Health Mission:

• Establishment of High-Risk Pathogen Laboratories: The mission is dedicated to creating a nationwide network of laboratories equipped to handle high-risk pathogens classified under Biosafety Levels 3 and 4.
  • These facilities provide a secure environment for studying infectious agents with pandemic potential.
• Departmental Collaboration: By consolidating laboratories managed by diverse departments, the mission aims to foster a cohesive network capable of coordinating resources and expertise across sectors.
  • This integration enhances disease outbreak response, irrespective of its origin in human, animal, or environmental realms.
• Optimized Resource Allocation: Pooling laboratory resources within a unified network ensures efficient utilization of infrastructure and personnel.
  • This collaborative approach enables swift responses to outbreaks and other health crises, maximizing available resources.
• Interdisciplinary Research and Analysis: Encouraging collaboration among experts from various disciplines—including medicine, veterinary science, environmental science, and public health—the mission promotes comprehensive research and analysis of health threats across multiple sectors.
• Integration of Artificial Intelligence (AI) and Machine Learning: Harnessing the power of AI and machine learning, the mission enhances epidemiological capabilities by analyzing vast datasets to detect patterns, trends, and potential health risks.
  • This technology enables timely interventions and enhances overall preparedness.
• Utilization of Disease Modelling: Advanced modeling techniques are employed to forecast disease spread and potential outbreaks.
  • These models facilitate targeted measures for disease control and prevention.
• Expansion of Genomic Surveillance: The mission broadens genomic surveillance efforts beyond COVID-19, encompassing other infectious diseases.
  • By analyzing genetic material from diverse sources like wastewater and animal congregations, scientists can monitor disease prevalence and identify emerging threats.
• Capacity Building Initiatives: Emphasizing the importance of skill enhancement, the mission prioritizes capacity building across sectors in epidemiology, data analytics, and laboratory management.
  • Training programs ensure that professionals possess the necessary skills to effectively utilize new technologies and methodologies.

Conclusion

The concept of One Health transcends mere disease management, encompassing broader realms such as antimicrobial resistance, food safety, plant diseases, and the consequential impacts of climate change. Addressing intersectoral issues like One Health necessitates active involvement not only from diverse governmental agencies but also from non-governmental organizations, academia, the private sector, and ordinary citizens. By adopting an actionable framework rooted in collaboration and comprehensive engagement, we can advance toward the overarching objectives of 'One Earth, One Health' and 'Health for All.

Why is it in the News?

The Election Commission (EC) is extremely reasonable in matters that affect public welfare and the Government, and investigative agencies must respect that.

Context:

• Recent concerns raised by two former heads of the poll panel have shed light on the actions of tax agencies during election periods.
• In a democracy, free and fair elections are fundamental, safeguarding citizens' rights to freely choose their representatives without external pressure.
• Given the significance of preserving the integrity of the electoral process, it is crucial to scrutinize actions that could potentially disrupt this process.
• Such actions include the issuance of tax demands or IT notices to political parties, prompting a closer examination of precedents where the Election Commission intervened to maintain a fair and balanced electoral environment.

Impact of IT Notices on Opposition During Election Period:

• Disruption of Level Playing Field (LPF) Through Financial Interference: The issuance of IT notices by tax agencies during election campaigns may be interpreted as efforts to undermine the democratic process by targeting specific political entities.
  • Freezing accounts, debiting funds, or issuing notices during this crucial period can significantly disrupt the financial resources and operational capacities of certain parties, thereby skewing the electoral landscape in favor of others.
  • Such interference compromises the core principles of democracy and electoral fairness, eroding public confidence in the integrity of the electoral process.
• Influence on Voter Perception: The timing of these actions raises concerns about their potential impact on voter perceptions and election outcomes.
  • Voters may perceive such actions as politically motivated or aimed at influencing the electoral results, casting doubts on the fairness and impartiality of the electoral process.
  • Preserving the principles of neutrality, transparency, and fairness is vital in upholding democratic ideals and ensuring elections truly reflect the will of the people.
• Operational Hurdles: Raids and enforcement activities by tax agencies pose significant operational challenges for political parties, diverting their focus and resources away from election campaigning.
  • Parties may find themselves compelled to address legal matters, respond to inquiries, and navigate tax regulations complexities, detracting from their ability to engage with voters and advocate their platforms effectively.
• Undermining Confidence in the Electoral Process: The perception that tax agencies target specific parties or candidates during elections can undermine public trust in the fairness and impartiality of the electoral process.
  • Such actions may be viewed as politically driven attempts to sway election outcomes, fostering skepticism about the legitimacy of the electoral process and the credibility of election results.
• Impact on Democratic Participation: Financial and operational challenges resulting from enforcement actions can discourage democratic engagement and participation among voters.
  • Perceived unfairness or bias in the electoral process may lead citizens to disengage from the democratic process, fostering disillusionment and apathy toward democratic participation.

Why Actions Against CMs, Congress Can Wait?

• Traditionally, the Election Commission (EC) has adhered to the principle of postponing any actions that can be deferred until after the conclusion of elections.
• It prompts a crucial question: would there be any significant harm in postponing these actions?
• In the current scenarios involving the arrest of two chief ministers and the issuance of IT notices, including the freezing of accounts of an opposition party, delaying these actions until after the elections would likely result in no irreparable harm.
• Conversely, proceeding with these actions during the election period could inflict irreparable damage on the two affected parties by severely hampering their electoral campaigns, both physically and financially.

Actions Taken by the Elections Commission (EC) Against Governments and Central Agencies to Preserve Level Playing Field (LPF):

• Addressing Bias or Partiality: The EC has actively intervened to uphold fair and impartial elections, particularly in cases where central agencies faced allegations of bias or partiality.
  • During the 2019 Lok Sabha elections, the EC urged the Enforcement Directorate (ED) to maintain impartiality following complaints from opposition parties about the perceived misuse of central agencies by the ruling party.
• Emphasizing Neutrality and Impartiality: The EC consistently underscores the principles of neutrality, impartiality, and non-discrimination in all enforcement actions during election periods.
  • Its commitment to maintaining the integrity of the electoral process is evident through its insistence on fair treatment for all parties involved.
• Balancing Public Welfare with Electoral Neutrality: While ensuring fairness, the EC also demonstrates pragmatism in matters affecting public welfare.
  • For instance, during state elections, it permitted the Ministry of Petroleum and Natural Gas to announce a national reduction in petrol prices, deeming it beneficial to the wider public interest.
  • However, proposals such as increases in minimum support prices of certain foodgrains, perceived as potentially influencing voters, are disallowed during election periods to maintain electoral neutrality.
• Promoting Transparency in the Electoral Environment: The EC's interventions aim to curtail the misuse of office by political leaders and ministers, fostering a transparent and equitable electoral environment.
  • The Model Code of Conduct (MCC) serves as a pivotal instrument in this endeavor, imposing restrictions on ruling parties to prevent undue advantages.
• Providing Guidance to Political Entities: While primarily focusing on individuals, the EC also advises political parties to ensure adherence to the code of conduct.
  • For example, during overlapping budget sessions and election periods, state governments are encouraged to adopt a "vote on account" approach to avoid contravening the MCC with new schemes or projects.
• EC's Influence in Goa By-Election, 2012: An illustrative instance of the EC's influence is its intervention in a by-election in Goa in 2012, where the Chief Minister intended to induct a probable candidate into the Council of Ministers before the election.
  • Despite possessing constitutional authority, the Chief Minister deferred the induction upon the EC's advice, acknowledging the moral authority of the Model Code of Conduct.
• This exemplifies the delicate balance between various authorities in a parliamentary democracy, reinforcing India's electoral processes as models of integrity and fairness globally.

Conclusion

The Election Commission's proactive engagement with central agencies, advocating for the postponement of actions such as raids, freezing of accounts, and issuance of tax demands until after elections, serves as a cornerstone in upholding the principles of free and fair elections.

By intervening in such matters, the Election Commission reinforces its commitment to ensuring an impartial electoral process, reassuring voters of the integrity and fairness of elections.

Ultimately, safeguarding the integrity of elections is paramount to preserving democracy and fostering public trust in the electoral process.

Why is it in the News?

With a series of elections to be held across the world in 2024, the potential of AI to disrupt democracies cannot be dismissed.

Context:

• The rapid advancement of Artificial Intelligence (AI) marks a significant turning point in human history.
• With the rise of Generative AI (GAI), the possibility of achieving Artificial General Intelligence (AGI) becomes increasingly feasible, raising questions about its potential to mimic human abilities.
• Thus, exploring AI's profound influence on human life, particularly within electoral contexts and broader societal realms, is imperative.

What is Generative AI (GAI)?

• Generative AI, short for Generative Artificial Intelligence, represents a branch of artificial intelligence focused on creating new content rather than simply processing or analyzing existing data.
  • Unlike traditional AI systems, which are designed to recognize patterns or make predictions based on historical data, generative AI models have the capability to generate new data that resembles real-world examples.
• These models work by learning patterns and structures from large datasets and then using that knowledge to create new content.
  • They can produce various types of content, including images, text, audio, and even video.
    • For example, a generative AI model trained on a dataset of human faces can generate realistic-looking images of faces that have never existed before.
• One of the key technologies behind generative AI is deep learning, particularly a type of neural network called a generative adversarial network (GAN).
  • In a GAN, two neural networks are pitted against each other: a generator and a discriminator.
  • The generator creates new data samples, while the discriminator tries to distinguish between real and fake data.
  • Through this adversarial process, the generator learns to produce increasingly realistic content.
• Generative AI has a wide range of applications across various industries.
  • In the field of art and design, it can be used to generate new artwork, music, or even fashion designs.
  • In entertainment, it can create realistic characters and environments for video games and movies.
  • In healthcare, it can generate synthetic medical images for training diagnostic algorithms.
• However, the technology also raises ethical concerns, such as the potential for misuse, copyright issues, and the creation of fake content.

The Role of Artificial Intelligence (AI) in Shaping Electoral Landscapes:

• A Transformative Influence- AI's Ascendancy in Politics: The integration of artificial intelligence (AI) into electoral processes represents a profound transformation in global political dynamics.
  • As nations gear up for elections, the incorporation of AI technologies introduces new variables that require a reassessment of conventional campaign methodologies and voter outreach strategies.
  • In the context of upcoming elections, including India's extensive seven-phase general election, AI emerges as a decisive factor influencing electoral trajectories.
  • The deployment of Generative AI, with its ability to conduct dynamic simulations and replicate real-world interactions, presents unprecedented opportunities and challenges for political stakeholders and the electorate.
• Harnessing AI for Campaign Innovation and Voter Engagement: Political entities and candidates are leveraging AI-driven tools to analyze vast datasets, craft targeted messaging, and optimize campaign blueprints.
  • AI-powered predictive analytics empower parties to pinpoint swing voters, tailor messages to specific demographics, and deploy resources more precisely.
  • Additionally, AI-enabled sentiment analysis of social media platforms furnishes real-time insights into voter attitudes and emerging concerns, informing campaign narratives and responsiveness strategies.
  • Moreover, AI's impact extends beyond campaign frameworks to encompass voter engagement and mobilization endeavors.
  • Through AI-driven chatbots, personalized interactions with voters are facilitated, addressing inquiries, disseminating information, and fostering voter participation.

What are the Concerns Regarding AI's Impact on Electoral Integrity?

• Challenges Posed by Deep Fakes: The expanding presence of AI within electoral arenas prompts apprehensions regarding its implications for democratic processes and the integrity of elections.
  • The emergence of 'Deep Fake' technology, capable of generating convincingly realistic yet fabricated audio, video, and textual materials, presents a formidable obstacle in identifying and combatting misinformation and disinformation campaigns.
  • Deep fakes produced by AI possess the capacity to deceive voters, manipulate public opinion, and erode trust in democratic institutions, thus distorting the integrity of electoral outcomes.
• Impact on Public Discourse and Decision-making: Moreover, the utilization of AI-powered algorithms in social media platforms for content curation and recommendation purposes raises concerns regarding filter bubbles, echo chambers, and algorithmic bias.
  • These algorithms, driven by AI, may inadvertently amplify divisive content, perpetuate existing biases, and contribute to the segmentation of public discourse, consequently influencing voter perceptions and decision-making processes.

What are AI Influences its challenges, and Mitigation Strategies?

• As artificial intelligence (AI) permeates various spheres of society, including electoral contexts, addressing the concept of AI influence becomes increasingly critical.
• AI influence refers to the ability of AI-driven tactics to shape human behavior and decision-making processes, often without individuals' explicit awareness or consent.
• Challenges in Addressing AI Influence: A primary challenge in addressing AI influence is mitigating its impact on electoral dynamics.
  • AI-powered algorithms can analyze extensive data sets to predict and influence voter behavior, potentially affecting electoral outcomes in ways that may not align with democratic principles or voter preferences.
  • To counter this, safeguards must be implemented to prevent undue AI-driven influence on electoral processes and outcomes.
• Promoting Transparency and Accountability: Transparency and accountability are crucial in addressing AI influence.
  • Electoral authorities and policymakers should establish clear guidelines and regulations governing the use of AI in political campaigns and voter engagement efforts.
  • This includes mandates for disclosing the use of AI-driven algorithms, data sources, and methodologies in campaign strategies, enhancing public awareness and understanding of AI's role in elections.
• Protecting Democratic Values: Efforts to combat AI influence should prioritize safeguarding democratic values and electoral integrity.
  • Measures must be implemented to detect and mitigate AI-driven manipulation, such as disinformation campaigns, deep fakes, and algorithmic bias.
  • Collaborative approaches involving electoral authorities, technology firms, civil society organizations, and academia are essential to develop effective tools and techniques for detecting and countering AI-driven threats to electoral integrity.
• Empowering Voter Literacy: Promoting media literacy and digital literacy among voters is crucial for combating AI influence.
  • By equipping voters with the skills to critically evaluate information sources, distinguish fact from fiction, and identify manipulation tactics, individuals can resist the influence of AI-driven propaganda and make informed voting decisions.
  • Educational initiatives, public awareness campaigns, and media literacy programs are vital for enhancing voter resilience against AI-driven misinformation and manipulation.

Additional Measures for Ensuring Electoral Integrity:

• Incorporating Ethical Guidelines into AI Governance: Furthermore, the ethical dimensions of AI governance should inform the development and application of AI technologies within electoral contexts.
  • Ethical AI governance frameworks should prioritize principles such as fairness, transparency, accountability, and adherence to democratic values.
  • This entails conducting comprehensive risk assessments, ensuring transparency and explainability in algorithms, and establishing mechanisms for independent oversight and accountability.
• Adopting Proactive Strategies: Policymakers, electoral authorities, and civil society actors should embrace proactive strategies to uphold electoral integrity and democratic principles in the age of AI.
  • Implementing robust regulatory frameworks, transparency mandates, and oversight mechanisms is crucial for mitigating the risks associated with AI-driven manipulation and disinformation campaigns.
  • Furthermore, investments in digital literacy initiatives and media literacy programs can empower voters to critically assess information sources, distinguish between fact and fiction, and resist manipulation efforts.

Way Forward:

• The risks associated with AI pose a substantial threat, surpassing concerns regarding biases in its design and development.
• AI systems inherently tend to manifest adversarial traits, for which effective mitigation strategies have yet to be fully realized.
• Beyond electoral implications, India's position as a digital frontrunner necessitates a cautious approach towards AI adoption, recognizing both its potential advantages and disruptive capabilities.
• While AI offers numerous benefits, it is imperative for the nation and its leaders to acknowledge its potential for malevolence.
• India's prominence in digital innovation presents both opportunities and challenges, as the advancement of AI, including AGI, brings both advantages and risks.
• Addressing the complexities of AI policy requires amplifying democratic voices and resisting the tendency to cede policymaking authority to a select few tech conglomerates.

Conclusion

The emergence of AI marks a significant milestone in human evolution, impacting electoral dynamics and social harmony in profound ways. While AI offers remarkable progress, it demands careful oversight to minimize its disruptive effects and uphold democratic values. As we venture into the realm of AI, wise decision-making and forward-thinking are essential to steer toward a future characterized by ethical AI governance and conscientious innovation.

Why is it in the News?

Recently, the Election Commission of India (ECI) announced that the country would vote in seven phases from April 19 to June 1 and the results will be announced on June 4. With this, the Model Code of Conduct (MCC) comes into effect.

What is the Model Code of Conduct (MCC)?

• The Model Code of Conduct (MCC) is a set of guidelines published by the Election Commission of India (EC) for political parties and candidates to set standards of conduct during the election campaign and polling.
• It also explains how parties can lodge complaints to the EC observers in case of dispute and instructs how the Ministers of the parties in power must conduct themselves when the MCC is in force.
• In 2019, a new addition regarding election manifestos was added, instructing parties to not issue promises which were ‘repugnant to the ideals of the Constitution’.

Is the Model Code of Conduct (MCC) Legally Binding?

• The MCC evolved as part of the ECI’s drive to ensure free and fair elections and was the result of a consensus among major political parties.
  • It has no statutory backing.
  • Simply put, this means anybody breaching the MCC can’t be proceeded against under any clause of the Code.
  • Everything is voluntary.
  • The EC uses moral sanction or censure for its enforcement.
• The ECI can issue a notice to a politician or a party for an alleged breach of the MCC either on its own or based on a complaint by another party or individual.
  • Once a notice is issued, the person or party must reply in writing, either accepting fault and tendering an unconditional apology or rebutting the allegation.
  • In the latter case, if the person or party is found guilty subsequently, he/she can attract a written censure from the ECI, something that many see as a mere slap on the wrist.
• However, several actions are listed as ‘electoral offenses’ and ‘corrupt practices’ under the Indian Penal Code (now known as Bharatiya Nyaya Sanhita) and the Representation of the People Act, 1951 such as:
  • Causing tension between castes, religious or linguistic communities
  • Appealing to caste or communal feeling to secure votes
  • Using places of worship for election propaganda
  • Bribing/intimidating/impersonating voters
  • Canvassing within 100 meters of polling booths
  • Transporting voters to and from polling stations
  • Disrupting public meetings
  • Serving or distributing liquor on polling day
  • Holding public meetings 48 hours before the closing of polls
• These actions will attract appropriate punishment as per these laws.

Previous Model Code of Conduct ‘Violations’:

• During the 2023 Madhya Pradesh Assembly elections, Priyanka Gandhi Vadra was questioned by the ECI for alleging that Prime Minister Narendra Modi favored his "big industrialist friends" during an election rally.
• In 2017, both BJP and Congress accused each other of violating the MCC during the Gujarat polls.
• In 2014, Amit Shah and Azam Khan were banned from campaigning by the ECI during the Lok Sabha polls under Article 324 of the Constitution for inflammatory speeches, which was lifted after they apologized and pledged to follow the Code.

When Does MCC Come Into Force and End?

• The MCC comes into force immediately when the election schedule is announced by the Election Commission and remains in operation till the election process is complete, i.e. results are announced.
• The MCC applies to all elections to the Lok Sabha and State Assemblies.
• It is also applicable for State Legislative Council elections from Local Bodies, and Graduates’ and Teachers’ Constituencies.
• It is enforced throughout India in case of General elections, and the State up for polls in case of Legislative Assembly elections.

Who Is Bound by It?

• All organizations, committees, corporations, and commissions (e.g. Transport authorities, Jal boards) funded wholly or partially by the Centre or State are bound by the MCC.
• While listed political parties and candidates are bound to follow the MCC, even non-political organizations that hold campaigns favoring a political party or candidate are bound to follow specific guidelines mentioned by the EC.

How is the MCC Enforced?

• Before holding polls for the General or State Assembly elections, the Election Commission issues guidelines to the government to shift out all officers including police who are posted in their home district, and who have completed/completed three out of four years in that district to ensure no interference.
• The MCC is then implemented by the newly appointed officials and nodal EC officers monitor compliance.
• No election campaigning is allowed within the constituency 48 hours before the close of polls.

What Restrictions Does the Model Code of Conduct Impose?

• The MCC contains eight provisions dealing with general conduct, meetings, processions, polling day, polling booths, observers, the party in power, and election manifestos.
• As soon as the code kicks in, the party in power, whether at the Centre or in the states, should ensure that it does not use its official position for campaigning.
  • Hence, no policy, project, or scheme can be announced that can influence voting behavior.
• The party must also avoid advertising at the cost of the public exchequer or using official mass media for publicity on achievements to improve chances of victory in the elections.
• The code also says the ministers must not combine official visits with election work or use official machinery for the same.
• The ruling party cannot use government transport or machinery for campaigning.
• It should also ensure that public places such as maidans etc., for holding election meetings, and facilities like the use of helipads are provided to the opposition parties on the same terms and conditions on which they are used by the party in power.
• The issue of advertisement at the cost of the public exchequer in the newspapers and other media is also considered an offense.
• The ruling government cannot make any ad-hoc appointments in government, public sector undertakings, etc., which may influence the voters.
• Political parties or candidates can be criticized based only on their work record and no caste and communal sentiments can be used to lure voters.
• Mosques, Churches, Temples, or any other places of worship should not be used for election campaigns.
• Bribing, intimidating, or impersonation of voters is also barred.
• Holding public meetings during the 48 hours before the hour fixed for the closing of the poll is also prohibited.
  • The 48 hours is known as “election silence”.
  • The idea is to allow a voter a campaign-free environment to reflect on events before casting her vote.

What are the Guidelines for Poll Manifestos?

• Manifestos must not contain anything repugnant to the ideals enshrined in the Constitution.
• They must reflect the rationale for welfare scheme promises and indicate ways to meet the financial requirements for it.
• The manifesto documents must not be released during the prohibitory period (when MCC kicks in).

How are Violations Dealt With?

• Any complaint regarding elections should be brought to EC observers, the Returning Officer, the local magistrate, the Chief Electoral Officer, or the Election Commission itself.
• In response, any directions issued by the EC, Returning Officer, or District Election Officer shall be strictly complied with.

Why is it in the News?

Although protecting persecuted individuals is commendable, the ideal solution is to grant refugee status to all, irrespective of their religious affiliation.

Context:

• India has been engaged in heated discussions over the Citizenship Amendment Act (CAA) since its inception in 2019.
• The recent issuance of Rules under the CAA by the Union government has sparked renewed debates concerning its impact on India's constitutional secularism.
• Amid these discussions, it is crucial to assess the CAA's provisions, their effects on citizenship, and the wider socio-political consequences they carry.

Concerns Surrounding the Citizenship Amendment Act:

• Selective Approach to Citizenship: The Citizenship Amendment Act (CAA) of 2019 amends India's Citizenship Act of 1955 and introduces a selective approach to granting citizenship.
  • This selective approach is a significant point of contention, as it differentiates between individuals based on their religious identity.
• Preferential Treatment for Certain Religious Groups: The CAA expedites the citizenship process for undocumented immigrants belonging to Hindu, Sikh, Buddhist, Jain, Parsi, and Christian communities from Pakistan, Afghanistan, and Bangladesh.
  • However, the Act explicitly excludes Muslims from these provisions, which has led to considerable debate and criticism.
• Violation of Secular Principles: Critics argue that the CAA violates the secular principles enshrined in India's Constitution.
  • Secularism, a foundational tenet of India's democratic ethos, mandates that the state remain neutral in matters of religion and guarantee equal rights and protections to all citizens, regardless of their faith.
• Discriminatory Nature: The CAA's exclusion of Muslims from its purview has been perceived as discriminatory and runs counter to India's historical commitment to religious pluralism and tolerance.
  • This discriminatory nature has sparked widespread protests and highlighted deep divisions within Indian society regarding citizenship, identity, and secularism.
• Upholding Constitutional Principles: The protests against the CAA underscore the importance of upholding constitutional principles and safeguarding the rights of all citizens, irrespective of their religious affiliation.
  • This controversy serves as a reminder of the need for inclusive and non-discriminatory policies that respect the diversity of India's population.

Potential Implications of the Notified Rules under the Citizenship Amendment Act:

• Streamlined Citizenship Process: The notified Rules streamline the citizenship application process by providing clear procedures and documentation requirements.
  • This standardization can potentially expedite the citizenship-granting process, allowing eligible individuals to secure legal status more efficiently.
• Lenient Proof Requirements: The Rules offer leniency in requirements for proof of nationality and residence, accepting various documents as evidence.
  • This flexibility may enable more individuals to establish their eligibility for citizenship under the CAA.
• Centralisation of Authority: The notified Rules centralize the citizenship-granting process at the national level, with an empowered committee formed by the Union government now responsible for processing applications.
  • This centralisation consolidates power at the national level, potentially reducing the role of local authorities in decision-making and grassroots-level accountability.
• Legal and Constitutional Challenges: The Rules are likely to face legal and constitutional challenges, particularly regarding their compatibility with India's constitutional principles and international legal standards.
  • Critics argue that the CAA and its accompanying Rules violate the constitutional guarantee of equality before the law (Article 14) by discriminating based on religion.
• Contradictions and Regional Discontent: The implementation of the CAA has exposed internal contradictions within India's citizenship laws, particularly in the case of Assam.
  • The discrepancy between Section 6A of the Citizenship Act, 1955, and the provisions of the CAA has fuelled discontent among local communities and complicated the citizenship landscape.
• Overall, the notified Rules under the Citizenship Amendment Act have significant implications for the citizenship-granting process, the balance of power between national and local authorities, and the interpretation of constitutional principles.
• As the legal and societal debates surrounding the CAA continue, these implications will likely shape the discourse on citizenship and belonging in India.

Moving Toward Inclusive Solutions: Addressing the Concerns Raised by the Citizenship Amendment Act:

• To address the concerns raised by the Citizenship Amendment Act (CAA) and its accompanying Rules, it is crucial to adopt a more inclusive approach that aligns with international humanitarian norms and India's commitment to secularism.

Here are some steps that can be taken:

• Inclusive Protection for Persecuted Individuals: Instead of granting citizenship based on religious affiliation, India should consider offering refugee status to all persecuted individuals, regardless of their religion.
  • This approach would be in line with international humanitarian norms and would uphold the principle of secularism enshrined in India's Constitution.
• Ratification of International Conventions: Ratifying international conventions such as the Geneva Convention Relating to the Status of Refugees would demonstrate India's commitment to protecting vulnerable populations and ensuring their rights.
  • This step would also bring India in line with global standards for refugee protection.
• Reevaluation of the Citizenship Amendment Act: Given the concerns surrounding the CAA's compatibility with constitutional principles and its potential for discrimination, it is essential to reevaluate the Act's provisions.
  • This process should involve a thorough examination of the CAA's impact on vulnerable communities and its alignment with India's democratic values.
• Upholding Constitutional Values: To ensure that the CAA and other legislation adhere to India's core values, it is crucial to reaffirm the principles of equality, non-discrimination, and secularism as outlined in the Constitution.
  • Policies and laws should be crafted to uphold these principles and protect the rights of all individuals, irrespective of their religious affiliation.
• By taking these steps, India can work toward addressing the concerns raised by the Citizenship Amendment Act and foster a more inclusive approach to citizenship that aligns with the nation's historical commitment to diversity and pluralism.

Why is it in the News?

More than four years after Parliament passed The Citizenship (Amendment) Act, 2019, the Ministry of Home Affairs on Monday notified the Rules to implement the law.

Context:

• The Citizenship Amendment Act (CAA) of 2019 amended the Citizenship Act of 1955 to provide a pathway to Indian citizenship for migrants belonging to Hindu, Sikh, Buddhist, Jain, Parsi, or Christian communities who entered India before December 31, 2014, from Pakistan, Afghanistan, or Bangladesh.
• The law was enacted amidst nationwide protests, particularly in Assam, and was officially notified on January 10, 2020.
• However, the implementation of the CAA was delayed due to the absence of accompanying rules and regulations.
  • To address this issue, the Union government issued an order on May 28, 2021, empowering district collectors in 13 districts with significant migrant populations to accept citizenship applications from the groups specified in the 2019 amendment.
• The CAA has been a subject of controversy and criticism, with opponents arguing that it violates the secular principles of the Indian constitution by excluding Muslims from its purview.
• Supporters of the law contend that it offers relief to persecuted minorities from neighboring countries.
• As the rules for the CAA have now been put in place, its implementation is anticipated to be a significant development in the ongoing discussions surrounding citizenship and immigration in India.

About the Citizenship (Amendment) Act (CAA) 2019:

• The Citizenship (Amendment) Act (CAA) of 2019 is a significant amendment to India's Citizenship Act of 1955.
  • It aims to provide a pathway to citizenship for Hindu, Sikh, Parsi, Buddhist, Jain, and Christian immigrants from Pakistan, Afghanistan, and Bangladesh who have faced religious persecution and have been residing in India without documentation.
• The CAA reduces the residency requirement for citizenship from 11 years to 5 years for eligible immigrants who entered India before December 31, 2014.
  • The Act also includes provisions for the cancellation of Overseas Citizen of India (OCI) registration in cases where the individual has violated any provision of the Citizenship Act or other applicable laws.
• The CAA applies to individuals who have been compelled to seek shelter in India due to religious persecution.
  • However, the Act does not apply to certain areas, such as regions covered by the Sixth Schedule of the Indian Constitution (which deals with autonomous tribal-dominated regions in Assam, Meghalaya, Tripura, and Mizoram) and states with an inner-line permit regime (Arunachal Pradesh, Nagaland, and Mizoram).
• The implementation of the CAA has faced delays due to opposition in several states, including Assam and Tripura.
  • The Act has sparked protests and legal challenges, with critics arguing that it violates the secular principles of the Indian Constitution and excludes certain persecuted groups, such as the Rohingya from Myanmar, Tibetan Buddhists from China, and Tamils from Sri Lanka.
• The CAA has been a subject of intense debate, with supporters claiming it offers relief to persecuted minorities and opponents asserting that it discriminates against Muslims and undermines India's secular fabric.
  • The Supreme Court is currently considering multiple petitions challenging the constitutional validity of the CAA.

Citizenship Amendment Rules, 2024:

• The Citizenship Amendment Rules, 2024 lay out a clear process for eligible refugees from Pakistan, Afghanistan, and Bangladesh to seek Indian citizenship through registration or naturalization.
  • The process begins with the submission of an application, along with an affidavit confirming the accuracy of the information provided and an affidavit from an Indian citizen vouching for the applicant's character.
• Applicants must also provide a declaration of their familiarity with one of the languages listed in the Eighth Schedule of the Indian Constitution.
  • The application is to be submitted electronically to an empowered committee via a district-level committee, as notified by the central government.
  • The district-level committee, headed by a designated officer, is responsible for verifying the submitted documents and administering the oath of allegiance to the applicant.
• Supporting documents that must be provided by applicants include:
  • A passport issued by the governments of Pakistan, Afghanistan, or Bangladesh
  • A birth certificate
  • Any form of identity document
  • Land or tenancy records; or any document proving that the applicant's parents, grandparents, or great-grandparents were citizens of one of the three countries.
    • These documents remain valid even beyond their expiration dates.
• Proof of entry into India before December 31, 2014, is also required.
  • Acceptable supporting documents for this include:
  •  visa and immigration stamp
  • A registration certificate from the Foreigners Regional Registration Officer (FRRO)
  • A slip issued by the Census enumerators in India
  • A government-issued license or certificate
  • A permit in India (including a driving license
  • Aadhaar number, or ration card), or a marriage certificate issued in India.
• Once an application is approved, the applicants will be issued a digital certificate, granting them Indian citizenship.
  • These rules provide a structured pathway for eligible refugees from the specified countries to obtain citizenship in India, offering them a chance at a new beginning and a sense of belonging in their adopted homeland.

The Mains issues and challenges associated with the CAA of 2019:

• Legal challenge: The CAA has been challenged in the Supreme Court by the Indian Union Muslim League (IUML) and others on the grounds of discrimination and violation of fundamental rights.
• Right to equality: Critics argue that using religion as a criterion for citizenship eligibility violates Article 14 of the Constitution, which guarantees equality before the law and equal protection under the law.
• Targeting of Muslims: Concerns have been raised that the CAA, in conjunction with the National Register of Citizens (NRC) in Assam, may disproportionately affect Muslims and lead to their exclusion from citizenship.
• Secularism: The use of religion as a basis for citizenship is seen by some as a violation of the principle of secularism, which is a fundamental feature of the Indian Constitution.
• Conflict with Assam Accord: The CAA's cutoff date for determining citizenship contradicts the Assam Accord of 1985, which set a different date for identifying foreigners in the state, leading to protests and opposition in Assam and other northeastern states.
• Widespread protests: The CAA has sparked protests across India, reflecting the complexities and sensitivities surrounding the issue of citizenship and the challenge of balancing the needs of persecuted minorities with upholding constitutional principles and addressing regional concerns.

What is the Government’s Stand?

• The government's position on the Citizenship Amendment Act (CAA) is that Muslims have been excluded from the list of "persecuted" minorities because they constitute the majority in the Islamic countries of Pakistan, Afghanistan, and Bangladesh.
  • According to the government, the CAA aims to provide citizenship to those who have faced religious persecution in these countries.
• However, this rationale is subject to scrutiny, as there are other persecuted minorities in these countries and elsewhere who have not been included in the CAA.
  • For instance, Tamil Hindus in Sri Lanka, Rohingya Muslims in Myanmar, and minority Muslim sects like Ahmadiyyas and Hazaras in Pakistan and Afghanistan also face persecution in their respective countries.
• The exclusion of these groups from the CAA raises questions about the criteria used to determine which minorities are considered persecuted and eligible for Indian citizenship under the Act.

What’s Next?

• The court will have to look into two issues:
  • Whether the special treatment given to the so-called “persecuted minorities” from the three Muslim-majority neighboring countries only is a reasonable classification under Article 14 of the constitution for granting citizenship, and
  • Whether the state is discriminating against Muslims by excluding them.
• The Supreme Court has earlier held that the law has to clear two legal hoops to pass the equality test when it is challenged on the grounds of Article 14.
  • First, any differentiation between groups of persons must be founded on an “intelligible differentia”, and
  • Second, “that differentia must have a rational nexus to the object sought to be achieved by the Act”.
• The SC can strike down a classification if it is found to be arbitrary. The court recently struck down the electoral bonds scheme on the ground that it was “manifestly arbitrary” — that is, “irrational, capricious or without an adequate determining principle”.

Why is it in the News?

The Supreme Court of India has recently mandated the public disclosure of all pertinent information regarding corporate funding of political parties, with the State Bank of India and other entities directed to comply with the court's directive.

Context:

• The recent landmark ruling by the Supreme Court's Constitution Bench, led by the Chief Justice of India, represents a pivotal moment in Indian democracy.
• This ruling specifically addresses the legality of the Electoral Bond Scheme (EBS) initiated through the Finance Act of 2017.
• Beyond its immediate implications, the verdict underscores fundamental principles such as equality, transparency, and proportionality concerning corporate contributions to election funding.

What is the Supreme Court verdict on the Electoral Bond Scheme?

• Nullification of Electoral Bond Scheme: The Supreme Court declared the Electoral Bond Scheme (EBS) unconstitutional, citing concerns over unrestricted donations, anonymity of contributions via promissory notes, and exemption of corporate donors from disclosure obligations.
  • This underscores the imperative of transparency in corporate election financing, aligning with constitutional rights outlined in Article 14 (equality) and Article 19(1)(a) (right to information).
• Immediate Cessation of Electoral Bonds and Disclosure Mandates: The Court mandated the immediate cessation of electoral bonds and directed all pertinent authorities to disclose relevant information dating back to April 12, 2019.
  • The State Bank of India's request for an extension was met with skepticism, prompting a contempt petition against them for non-compliance.
• Guidelines on Legislative Passage via Money Bill Route: While the verdict didn't specifically address the Speaker's authority to classify bills as money bills, it offered guidance suggesting that not all legislative determinations qualify as financial or economic decisions.
  • This challenges the presumption of constitutionality and underscores the need for a nuanced approach in evaluating bills passed via the money bill route.

What is the Reason Behind SC's Scrutiny of Electoral Bond Scheme (EBS)?

• Elimination of Donation Caps: The court closely examined the EBS due to its elimination of donation caps imposed on political parties, as outlined in the Finance Act 2017.
  • This removal of restrictions allowed for unrestricted inflow of funds into electoral campaigns, posing a potential threat to the democratic principle of a level playing field.
• Anonymity of Donations via Promissory Notes: An area of concern highlighted by the court was the provision in the EBS allowing for anonymous donations to political parties through promissory notes issued by recognised banks.
  • This mechanism raised significant issues regarding transparency and accountability, as it enabled substantial financial backing to political entities without disclosing the identity of the contributors.
• Exemption of Corporate Donors from Disclosure Requirements: The EBS faced scrutiny for exempting corporate donors from the obligation to disclose their contributions in balance sheets, a highly contentious feature.
  • This exemption created opacity surrounding corporate funding of political parties, undermining the transparency necessary for a robust democratic process.

SC’s Analysis of the Proportionality Doctrine: Its Implications on Legislative Goals and the Restriction of FR

• Evolution of the Proportionality Doctrine: The judgment highlights the proportionality doctrine as a tool for self-discipline in constitutional judicial review, aimed at balancing governmental powers with individual rights
  • Serving as a foundational aspect of constitutional discipline, it establishes parameters applicable to all governance institutions.
• Differentiation Between Manifest Arbitrariness and Reasonable Exercise of Power: A crucial distinction is drawn between manifest arbitrariness and the reasonable exercise of power, with the court emphasizing that restricting a fundamental right does not equate to abrogating it entirely.
  • This distinction safeguards against arbitrary exercise of governmental authority, stressing the necessity for reasonable and proportionate limitations on rights.
• Legitimate Goals and Appropriate Means: Applying the proportionality test, the court scrutinizes the legislative objectives behind the Electoral Bond Scheme, mandating that any restriction on a fundamental right must serve a legitimate goal and utilize suitable means.
  • Questions are raised regarding the legitimacy of curbing black money as a specific ground under Article 19(2), emphasizing the need for the state to justify its actions with reasonable objectives.
• Nexus Between Law and Stated Objectives: Introducing the concept of a reasonable nexus, the court holds that laws should demonstrate a rational connection between means employed and objectives sought to be achieved.
  • This requirement ensures that restrictions on fundamental rights are directly related to their intended purpose, avoiding arbitrary infringements.
• Balancing Conflicting Rights: A notable development is the introduction of the double proportionality test, addressing conflicts between equal rights such as donor privacy and voter information and influence.
  • The court mandates a secondary proportionality assessment to ensure that any infringement on one right is justified and not disproportionate in impact.
• Alternative Measures and Judicial Restraint: While advocating proportionality, the court suggests alternative measures to achieve legislative goals, such as setting up electoral trusts or imposing caps on corporate funding.
  • Additionally, it exercises judicial restraint, respecting the autonomy and powers of the executive and legislative branches.
• Chief Justice M C Chagla's Warning: The judgment recalls Chief Justice M C Chagla's 1958 caution regarding the influential role of big business and money in democracy, highlighting a long-standing concern about corporate influence.
  • Chagla's foresight underscores the judiciary's role in preventing improper or corrupt influence, emphasizing the need to safeguard democratic values.
• Historical Perspectives by the CJI: Chief Justice Chandrachud's historical perspective underscores the judiciary's responsibility to prevent improper influences on democracy, advocating for a proactive role in safeguarding democratic values.
  • The court's assertion aligns with the idea of acting as a check against attempts to compromise the democratic process, particularly by powerful corporate entities.

Conclusion

The Supreme Court's nullification of the Electoral Bond Scheme is a staunch defense of democratic principles. By rejecting elements that undermine transparency, equality, and accountability, the court reaffirms core democratic values. This landmark ruling signifies a crucial juncture in India's legal narrative, establishing a precedent for safeguarding democracy against opaque financial influences.

Why is it in the News?

The recent agitations by the governments of Kerala and Karnataka, and the support extended by several State governments, have highlighted many disquieting issues in the practice of fiscal federalism in India.

Context:

• The recent protests by the governments of Kerala and Karnataka, supported by several other state governments, have brought to light several concerning issues regarding fiscal federalism in India.
• These protests underscore the pressing need for the newly constituted 16th Finance Commission (FC) to approach the matter with seriousness and innovation to address grievances related to growing vertical and horizontal inequalities in resource allocation.

What is Fiscal Federalism?

• Fiscal federalism refers to the distribution of financial authority and obligations among various tiers of government within a nation.
• It encompasses considerations like determining the roles and responsibilities of the central and state governments in delivering services, devising mechanisms for revenue generation and allocation among these entities, and establishing fair and efficient systems for transfers or grants distribution to promote equity and effectiveness.

Fiscal Federalism in India:

• The framers of the Constitution stipulated that the Central government would share its tax revenues with the states and provide grants from the Consolidated Fund based on a formula determined by the Finance Commission every five years.
• India operates under a three-tier federal tax system, delineating the powers of the Central government, state governments, and local bodies to levy taxes.
• The Central government possesses the authority to impose taxes on individual and corporate incomes, along with indirect taxes like central goods and services tax (CGST), integrated goods and services tax (IGST), and customs duties. Additionally, it collects surcharges and cesses on various taxes.
• State governments are responsible for levying state goods and services tax (SGST), stamp duties, land revenue, state excise duties, and professional taxes.
• Local bodies exercise jurisdiction over taxes such as property or house taxes, tolls, and utility taxes on services like electricity and water.

What are the Constitutional Provisions?

• The Constitution of India outlines the taxation authority of both the Union and States, categorizing them into the Union List and the State List respectively (as outlined in the Seventh Schedule under Article 246).
  • Initially, there was no taxation provision in the Concurrent List.
• However, with the introduction of GST, the need for a concurrent taxation framework arose, leading to the insertion of Article 246A (as the 101st Amendment in August 2016).
• This amendment empowered the Union to legislate for CGST (Central GST) and IGST (Integrated GST), while the States were granted the authority to enact SGST laws.
• Article 270 of the Constitution outlines the mechanism for distributing net tax proceeds collected by the Union government among the Centre and the States.

What are the Concerns with the States?

• Growing Vertical and Horizontal Inequalities: States have raised concerns about increasing disparities both vertically, pertaining to the sharing of resources between the Union and States, and horizontally.
  • The Union government's inclination to retain a larger share of its proceeds outside the divisible pool has exacerbated these inequalities.
• Retention of Proceeds: The Union government's practice of withholding a greater portion of its proceeds from the divisible pool has diminished the share allocated to States, contravening mandates from successive Finance Commissions.
• Proliferation of Cesses and Surcharges: Various cesses and surcharges, such as the Agriculture Infrastructure and Development Cess, have been introduced by the Union government, leading to an expansion of these revenue streams.
  • This expansion has resulted in a larger portion of the gross tax revenue being excluded from net proceeds, thereby depriving States of their rightful share.
• Financial Exclusion of States: Over the period from 2009-10 to 2023-24, the Union government collected a substantial cumulative amount of ?36.6 lakh crore through cesses and surcharges, all of which remained unshared with the States.
  • The imposition of cesses and surcharges has faced criticism from the Comptroller and Auditor General (CAG), further highlighting concerns about their impact on state finances.

Way Forward

• Rectifying disparities in resource sharing and addressing the proliferation of cesses and surcharges are critical imperatives for the 16th Finance Commission (FC).
• The FC should proactively address historical imbalances in vertical devolution by compensating States appropriately and ensuring accurate estimates of "net proceeds" in budgetary documents.
• Moreover, it should consider providing lump sum untied grants to States to offset shortfalls in devolution over the past decade.
• Simultaneously, legislative measures must be enacted by the Union government to impose strict limits on the collection of cesses and surcharges, ensuring their automatic expiration after a defined period and preventing their rebranding under different names.
• Furthermore, States must adhere to the principles of fiscal federalism by allocating sufficient resources to local bodies and promoting dynamic and transparent development initiatives at the grassroots level.

What is the Finance Commission?

• The Finance Commission is constituted by the President under Article 280 of the Constitution, mainly to give its recommendations on the distribution of tax revenues between the Union and the States and amongst the States themselves.
• Two distinctive features of the Commission’s work involve redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the center and the States respectively and equalization of all public services across the States.

Functions of the Finance Commission:

• It is the duty of the Commission to make recommendations to the President as to the distribution between the Union and the States of the net proceeds of taxes which are to be:
  • Divided between them and the allocation between the States of the respective shares of such proceeds;
  • The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India;
  • The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats in the State based on the recommendations made by the Finance Commission of the State;
  • The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State based on the recommendations made by the Finance Commission of the State;
  • Any other matter referred to the Commission by the President in the interests of sound finance.
• The Commission determines its procedure and has such powers in the performance of its functions as Parliament may by law confer on them.

Appointment of the Finance Commission and Qualifications for Members:

• The Finance Commission is appointed by the President under Article 280 of the Constitution.
• As per the provisions contained in the Finance Commission Act, 1951 and The Finance Commission (Salaries & Allowances) Rules, 1951, the Chairman of the Commission is selected from among persons who have had experience in public affairs, and the four other members are selected from among persons who:
  • (a) are, or have been, or are qualified to be appointed as Judges of a High Court; or
  • (b) have special knowledge of the finances and accounts of the Government; or
  • (c) have had wide experience in financial matters and administration; or
  • (d) have special knowledge of economics

How are the recommendations of the Finance Commission implemented?

• The recommendations of the Finance Commission are implemented  as under:
  • Those to be implemented by an order of the President:
  • The recommendations relating to the distribution of Union Taxes and Duties and Grants-in-aid fall in this category.
  • Those to be implemented by executive orders:
  • Other recommendations to be made by the Finance Commission, as per its Terms of Reference

When was the first Commission Constituted and how many Commissions have been Constituted so far?

• The First Finance Commission was constituted under the chairmanship of Shri K.C. Neogy on 6th April 1952.
• 15th Finance Commissions have been Constituted so far at intervals of every five years.
• The 16th Finance Commission was constituted on 31 Dec 2023 with Shri Arvind Panagariya, former Vice-Chairman, NITI Aayog as its Chairman.
  • The 16th Finance Commission is required to submit its recommendations by October 31st, 2025.
• However, the recommendations of the 15th FC cover the six years up to 31st March 2026.

Why is it in the News?

In August 2023, ahead of the Assembly elections in five States, the Election Commission of India (ECI) voiced its concern over the environmental risks associated with the use of non-biodegradable materials in elections.

Context:

• The Election Commission of India (ECI) has emphasized the environmental impact of traditional election materials, urging a shift towards eco-friendly practices, particularly given India's status as the world's largest democracy.
• India must prioritize environmental sustainability in its electoral procedures, recognizing successful eco-friendly initiatives in Kerala, Sri Lanka, and Estonia, and strategizing a comprehensive green transition involving diverse stakeholders.

Why Conducting Elections Require a Paradigm Shift?

• Unrecognized Environmental Impact of Elections: The emissions generated by campaign flights in the 2016 US presidential elections underscore the substantial carbon footprint linked to conventional election methodologies.
  • Conventional election practices, marked by paper-based materials, energy-intensive rallies, and disposable items, contribute to environmental harm and affect public health.
  • Given the colossal scale of India's elections, these concerns become more pressing, calling for a shift towards eco-friendly election processes.
• Startling Research Findings: Recent research from Estonia (2023) pinpoints transportation to and from polling booths as the primary contributor to carbon emissions in elections, closely followed by the operational footprint of polling booths.
  • Adopting digital voting systems has the potential to slash the overall carbon footprint by as much as 40%.

What are Some Successful Models of Eco-Friendly Elections?

• Pioneering Initiatives in Kerala and Goa: During the 2019 general election, the Kerala State Election Commission spearheaded efforts to eliminate single-use plastic materials from campaign activities.
  • Subsequently, the Kerala High Court enforced a ban on non-biodegradable materials, leading to the adoption of eco-friendly alternatives like paper posters and wall graffiti.
  • Collaborative endeavors between government bodies and district administrations in Thiruvananthapuram ensured the implementation of green election practices, including training sessions for election workers in rural areas.
  • In 2022, the Goa State Biodiversity Board showcased eco-friendly election booths crafted from biodegradable materials by local artisans during the Assembly elections.
• Innovative Strategies from Sri Lanka: In 2019, the Sri Lanka Podujana Peramuna (SLPP) party initiated the world's first carbon-sensitive, environmentally friendly election campaign.
  • This groundbreaking campaign measured carbon emissions from campaign vehicles and electricity usage, offsetting them by planting trees across districts with public participation.
  • By addressing the immediate carbon footprint of the campaign and raising awareness about the importance of forest cover, Sri Lanka set a notable example for sustainable election practices.
• Estonia's Digital Voting Model: Estonia pioneered digital voting as an online alternative, significantly enhancing voter participation while reducing environmental impact.
  • The success of Estonia's approach underscores the feasibility of digital voting, complemented by stringent security measures, as an eco-friendly and voter-centric solution.

A Roadmap for Sustainable Green Elections:

• Political Leadership and Digital Campaigning: Political parties should enact legislation mandating eco-friendly election practices, integrating them into the Model Code of Conduct governing campaign activities.
  • Encouraging the adoption of digital platforms for campaigning and door-to-door outreach can substantially reduce the carbon footprint associated with traditional public rallies.
• Incentivizing Sustainable Practices and Infrastructure Development: Offering incentives for political parties to use sustainable materials like natural fabrics and recycled paper in place of plastic and paper-based campaign materials, alongside supporting waste management and local artisans.
  • Government investment in digital voting infrastructure, particularly in rural areas, ensures reliable internet access and accessible digital devices for all voters.
• Role of the Election Commission of India (ECI) with Government Backing: The ECI can advocate for digital voting systems, highlighting their environmental benefits and addressing security concerns through comprehensive measures.
• Public Awareness and Civil Society Engagement: Civil society organizations can lead public awareness campaigns, educating citizens about the environmental impact of traditional election methods and advocating for eco-friendly alternatives.
  • Monitoring the implementation of green initiatives and advocating for transparency and accountability in the electoral process.
• Media's Advocacy Role: Media outlets can spotlight the environmental consequences of conventional election methods through investigative reporting and by showcasing successful eco-friendly initiatives.
• Global Collaboration for Sustainable Elections: Collaborating with countries like Sri Lanka and Estonia, which have successfully implemented eco-friendly election practices, to share insights and support international platforms for exchanging best practices in sustainable electoral initiatives.

Hurdles and Potential Solutions for Conducting Eco-Friendly Elections:

• Technology Barriers: Ensuring a seamless transition to digital voting demands robust technological infrastructure, particularly in remote regions where connectivity may be sparse.
  • Upholding the integrity and security of digital systems is paramount, requiring comprehensive safeguards against cyber threats and manipulation to uphold public trust.
• Financial Impediments: Embracing eco-friendly materials and technologies entails significant initial investments, posing challenges for governments constrained by budgetary limitations.
  • Competing priorities may hinder the allocation of funds toward sustainable electoral practices, despite their long-term environmental advantages.
• Cultural Shifts and Public Doubts: Cultural norms often associate physical polling booth presence with democratic participation, necessitating efforts to shift perceptions towards digital methods.
  • Addressing public skepticism regarding new technologies, particularly concerns about security and reliability, requires proactive measures to build trust and confidence.
• Promoting Transparency and Accountability: The adoption of eco-friendly and digital strategies must be accompanied by transparent processes and robust auditing mechanisms.
  • Establishing clear protocols for auditing new practices fosters accountability and addresses concerns about fairness and impartiality, enhancing public trust.
• Tackling Logistical Complexities: Executing large-scale electoral reforms demands meticulous planning and coordination across various stages.
  • From sourcing eco-friendly materials to training personnel, addressing logistical challenges systematically is essential for smooth implementation.

Conclusion

Adopting environmentally conscious electoral practices represents not only an imperative for India but also a chance to lead by example on the global stage. Harmonizing high-level policies with ground-level efforts and engaging various stakeholders—political entities, Election Commissions, governments, citizens, media, and civil society—can position India as a trailblazer in conducting sustainable elections. This transformative approach not only integrates environmental responsibility but also reinforces the connection between ecological stewardship and the core tenets of democracy.

Why is it in the News?

While SC judgments on electoral bonds and Chandigarh mayoral election are welcome, they ought not to merely be an episodic legitimisation of the façade of constitutionalism.

Recent Indian Supreme Court Rulings Questioning Government Actions:

• Invalidating the Electoral Bonds Scheme: The Supreme Court ruled the electoral bonds scheme unconstitutional, posing a challenge to a major government initiative concerning political funding.
• AAP Victory in Chandigarh Mayoral Election: The Court affirmed the Aam Aadmi Party's (AAP) victory in the Chandigarh mayoral race, overturning a local electoral outcome and directly challenging administrative actions in the election process.

Analyzing the Supreme Court's Balancing Act:

• Observe the Executive's Activities to Sustain Its Own Lawfulness: The Supreme Court of India, as the highest judicial authority, bears the weighty responsibility of interpreting and upholding the Constitution.
  • In fulfilling this duty, it frequently engages in a precarious balancing act, striving to negotiate the intricacies of challenging executive decisions while safeguarding its own credibility.
  • This intricate dance between the judiciary and the executive mirrors the broader constitutional framework, wherein checks and balances play a pivotal role in preventing the dominance of any single branch.
• Significance of Upholding Legitimacy: A fundamental aspect of this delicate balancing act is the imperative to avoid antagonizing the executive to the extent that it imperils the Court's legitimacy.
  • The Court recognizes that maintaining this delicate equilibrium is indispensable for the institution’s continued existence.
  • A collapse in the Court's credibility could undermine the very fabric of the constitutional order it endeavours to uphold.
  • This consideration often influences the Court's deliberations, prompting careful consideration of the potential ramifications for its stature.

What are the Issues with the Court's Balancing Act Against the Executive?

• The Court grapples with the intricate balance between its roles as a legal arbiter and guardian of constitutional integrity, particularly when confronted with executive actions that may encroach upon constitutional principles.
• Recent decisions, like invalidating the electoral bonds scheme, highlight the Court's assertion in safeguarding democratic norms while cautiously avoiding confrontation to preserve its legitimacy.
• However, concerns arise when the Court's reluctance to challenge the executive overshadows its commitment to constitutional values, potentially legitimizing authoritarian agendas.
• Maintaining a facade of constitutionalism can lead to questions regarding the Court's consistent commitment to curbing executive power.
• The Court must uphold constitutional principles robustly, even if it means challenging the executive's authority uncomfortably, to ensure justice and democracy prevail.
• Success in this delicate balancing act lies not only in the decisions rendered but also in the Court's unwavering dedication to justice and democracy, despite formidable executive pressures.

Analysing Political Culture, Public Sentiment, and the Court's Influence:

• Disparity Between Legal Pronouncements and Public Opinion: Recent Supreme Court rulings against government initiatives, such as invalidating the electoral bonds scheme, fail to resonate as significant concerns within public sentiment, highlighting a disconnection between legal decisions and public perception.
• Normalization of Institutional Decline: The lack of public outcry over decisions challenging government actions reflects a worrying normalization of institutional decay, where issues like electoral malpractice are perceived as minor errors rather than threats to democracy.
• Aestheticization of Politics: Rather than prompting political concern, events like the Chandigarh mayoral race are often viewed as entertainment, illustrating a shallow engagement with political developments that overlook their implications for governance.
• Opposition Fragmentation and Political Dynamics: The Opposition's fragmented state impedes its ability to leverage judicial decisions against the government, weakening efforts to hold the ruling party accountable and allowing it to diminish the significance of adverse legal rulings.
• Courts' Influence on Political Culture: While the Court delivers commendable decisions, it operates within a political culture seemingly immune to the erosion of democratic norms, limiting its ability to shape broader perceptions.
  • Legal victories, though sound, struggle to spark the necessary public mobilization to impact the prevailing political climate.

Way Ahead:

• Embracing Civic Courage and Critical Inquiry: Amidst institutional erosion and a dearth of political engagement, there is a pressing need for civic courage, critical thinking, and a commitment to holding the government to account.
  • Instances of institutional impropriety, whether through overreach, repression, or communalisation, often fail to provoke a robust public response.
  • The reluctance to critically engage with such issues perpetuates a political climate where even pro-democracy decisions are seen as rare anomalies rather than normative outcomes.
  • As such, the public's reception of these rulings becomes pivotal in shaping their enduring impact.
• Calling for a Reassessment of Institutional Roles: Recent legal verdicts must be part of a broader effort to challenge the consolidation of authoritarianism and communalism.
  • The prevailing political climate necessitates critically reassessing institutional roles in fostering genuine accountability.

Conclusion

Recent Supreme Court rulings, while potentially positive, warrant cautious consideration amid broader institutional challenges. Navigating issues like legitimacy balancing, fragmented opposition, and institutional normalization presents formidable obstacles. The enduring impact of these decisions hinges on both public reception and the Court's steadfast dedication to constitutional principles, determining whether they signify substantive progress or fleeting glimpses of hope amidst broader democratic challenges in India.

Why is it in the News?

There is a need to educate elected representatives and the public on the significance and the need for panchayats to be able to survive on its own resources

Context:

• Three decades have passed since the enactment of the 73rd and 74th Constitutional Amendment Acts, designed to institutionalize local bodies as entities of local self-government.
• Presently, the degree of devolution in India's Panchayati Raj institutions exhibits variations among states, with some making substantial strides and others trailing behind.
• Therefore, there is a pressing need to scrutinize the fiscal devolution dimension, underscoring the pivotal role of state government commitment in enhancing the effectiveness of Panchayati Raj institutions at the grassroots level.

What is the Local Self Government?

• The system of local self-government, more commonly known as ‘panchayats’, had been established to empower the grassroots of democracy in India.
• Panchayats or local-self rule is a three-tier system in each state which has elected bodies at the village, taluk and district levels.
• The concept of panchayats has been present in Indian society since ancient times.
• Over the centuries the concept has undergone various changes and modifications and in the recent past has taken the form of panchayati raj institutions after decentralization reforms in the early 1990s.
• These institutions for grassroots-level democracy were formally included in the Constitution through the 73rd and 74th Amendments Act in 1993.
• The constitutional amendments also ensured the reservation of one-third of all elected positions for women in both rural and urban areas.
• Derived from the Central Act, various State Panchayati Raj Acts have incorporated provisions for taxation and revenue collection.
• The main idea of setting up local-self government institutions was to enable and empower the local people to manage their affairs by being a part of the decision-making process and participating in the implementation of policies in a more effective manner.

The Present State of Fiscal Devolution of Panchayats:

• Reliance on External Funds: The 73rd and 74th Constitutional Amendments Acts underscored the importance of fiscal devolution, urging Panchayati Raj institutions and urban local bodies to achieve financial self-sufficiency.
  • These amendments explicitly stated the necessity for local bodies to generate their own revenues to reduce reliance on grants from higher levels of government.
  • However, the current scenario indicates that Panchayati Raj institutions still heavily depend on external funding, with only 1% of their revenue originating from taxes.
• Panchayats' Struggle to Generate Revenue Through Taxation: The data highlights the challenge that, despite constitutional provisions, Panchayats are not effectively utilizing taxation as a primary revenue source.
  • Merely 1% of revenue is generated through taxes, while a significant 80% is sourced from the Central government and 15% from the States.
  • This disparity raises concerns about the commitment of state governments to decentralization and the overall efficacy of devolution initiatives implemented over the past three decades.
• Centralization of Financial Resources Despite Constitutional Emphasis on Fiscal Devolution: Despite the constitutional emphasis on fiscal devolution, the centralization of financial resources remains a persistent issue.
  • Panchayats are envisioned as self-governing entities with the authority to raise their own revenue, yet the reality paints a different picture.
  • The disproportionate distribution of revenue indicates a lack of fiscal empowerment at the grassroots level, undermining the fundamental principles of local self-government.

What are the Challenges Faced by Panchayati Raj Institutions in Revenue Generation?

• Dependency on Grants: The reliance on grants is exacerbated by the heightened allocations from Central Finance Commissions (CFC).
  • A comparative analysis reveals a significant increase in grants disbursed through the 14th and 15th CFCs, amounting to ?2,00,202 crore and ?2,80,733 crore, respectively.
  • This substantial influx of grants has inadvertently diminished incentives for generating own-source revenue.
  • Panchayats, buoyed by augmented financial assistance, have gradually shifted focus away from revenue generation, fostering a culture of dependence on external funds.
• The Culture of Entitlement: A prevalent cultural mindset fosters resistance to taxation, with individuals expecting a range of services and benefits without contributing financially to the sustenance of Panchayats.
  • This aversion to taxation arises from the belief that public services should be provided without imposing a direct financial burden on the local populace.
• Dilemma of Elected Representatives: Elected representatives, crucial to the functioning of Panchayati Raj institutions, grapple with their own set of challenges.
  • There exists a tangible apprehension among these representatives that levying taxes might adversely affect their popularity and electoral prospects.
  • This fear often results in hesitancy to take decisive steps towards revenue generation.
  • Addressing this challenge necessitates targeted efforts to educate elected representatives about the enduring benefits of financial self-sufficiency and its positive impact on local development endeavours.
• Decline in Tax Collection: Tax collection, which stood at ?3,12,075 lakh in 2018-19, dwindled to ?2,71,386 lakh by 2021-2022.
  • This downward trend raises concerns, signalling a waning commitment to financial autonomy at the local level.
  • Similarly, non-tax revenue also experienced a decline from ?2,33,863 lakh to ?2,09,864 lakh during the same period.
  • These patterns underscore the imperative for revitalized efforts in revenue generation and a departure from grant dependency.

Government's Efforts to Implement Constitutionally Mandated Fiscal Devolution:

• Establishment of an Expert Committee: To address this challenge, the Ministry of Panchayati Raj constituted an expert committee tasked with examining the own source of revenue (OSR) of rural local bodies.
  • The committee's findings delineate various revenue-generating avenues accessible to Panchayati Raj institutions through State Acts.
  • These mechanisms include property tax, land revenue cess, stamp duty surcharge, tolls, professional tax, advertisement tax, and user charges for essential services like water, sanitation, and lighting.
  • While these avenues exist, their effective implementation is imperative for Panchayats to attain financial autonomy.
• Focus on Effective Taxation Mechanisms: The report underscores the significance of establishing an enabling environment for taxation, encompassing decisions on tax and non-tax bases, enactment of robust tax management and enforcement laws, etc.
  • This strategic approach aims to empower Panchayats to fully leverage their revenue generation potential.
  • While taxation constitutes a vital aspect of fiscal devolution, the report also acknowledges the potential of non-tax revenue streams, including Fees, rent, income from investment sales and hire charges,
• Along with revenue from innovative initiatives such as rural business hubs, commercial ventures, renewable energy projects, carbon credits, CSR funds, and donations.
• Diversification of revenue sources can bolster the financial resilience of Panchayati Raj institutions, reducing their reliance on grants.

The Role of Gram Sabhas:

• Gram sabhas have a significant role in fostering self-sufficiency and sustainable development at the grass-roots level by leveraging local resources for revenue generation.
• They can be engaged in planning, decision-making, and implementation of revenue-generating initiatives that range from agriculture and tourism to small-scale industries.
• They have the authority to impose taxes, fees, and levies, directing the funds towards local development projects, public services, and social welfare programmes.
• Through transparent financial management and inclusive participation, gram sabhas ensure accountability and foster community trust, ultimately empowering villages to become economically independent and resilient.
• Thus, gram sabhas need to promote entrepreneurship, and foster partnerships with external stakeholders to enhance the effectiveness of revenue generation efforts.

Way Forward:

• Education and Awareness: There is a pressing need to raise awareness among elected representatives and the public about the importance of revenue generation for developing Panchayats as self-sustaining institutions.
  • Ultimately, the dependency syndrome for grants has to be minimised and in due course, panchayats will be able to survive on their own resources.
  • Achieving this goal requires concerted efforts at all levels of governance, including the state and central levels.
• Promotion of Entrepreneurship: Gram Sabhas plays a crucial role in promoting entrepreneurship and fostering partnerships with external stakeholders to bolster revenue generation efforts.
  • Encouraging entrepreneurial ventures within local communities can stimulate economic growth and reduce dependency on external funding.
• Collaboration and Support: Panchayats need to collaborate closely with higher tiers of governance and external stakeholders to enhance their revenue generation capabilities.
  • This collaborative approach can facilitate the implementation of innovative initiatives and the efficient utilization of resources, thereby fostering financial self-reliance among Panchayats.

Why is it in the News?

A five-judge Constitution Bench of the Supreme Court on Thursday unanimously struck down the Centre’s electoral bond scheme which facilitates anonymous political donations for being unconstitutional.

Context:

• A five-judge Constitution Bench of the Supreme Court on Thursday unanimously struck down the Centre’s electoral bond scheme which facilitates anonymous political donations for being unconstitutional.
• It underscored that the scheme violates the right to information under Article 19(1)(a) of the Constitution.
• Additionally, the Apex Court nullified several amendments introduced by the government in vital laws to streamline corporate donations to political parties.
  • These amendments were incorporated through The Finance Act, 2016, and The Finance Act, 2017, preceding the implementation of the EBS in January 2018.
• The decision followed petitions from the Communist Party of India (Marxist) and NGOs Common Cause and ADR.

Key Highlights of the SC Judgement:

• Protection of Voters' Right to Information: The court emphasized that access to information regarding political party funding is crucial for informed voting.
  • It argued that economic disparities lead to political inequalities, as financial resources often translate into greater political influence and access to policymakers.
  • Thus, the Electoral Bonds Scheme (EBS) was deemed to violate Article 19(1)(a) of the Constitution, safeguarding freedom of speech and expression.
• Disproportionate Restrictions on Curbing Black Money: While acknowledging the importance of curbing black money, the court found the restrictions imposed by the EBS disproportionate.
  • It clarified that restrictions on the Right to Information (RTI) should align with Article 19(2) of the Constitution, which outlines reasonable restrictions on freedom of speech and expression.
  • Curbing black money was not deemed a valid reason for such restrictions.
• Right to Donor Privacy: The judgement delved into the notion of donor privacy, particularly regarding political contributions.
  • It affirmed that the right to informational privacy encompasses political affiliation.
  • However, it clarified that privacy does not extend to contributions aimed at influencing policies, emphasizing genuine political support over attempts to obscure motives, especially those of corporate entities.
• Limits on Corporate Political Contributions: The court declared unlimited political contributions by companies unconstitutional.
  • It highlighted the disproportionate influence of corporations on the political process compared to individuals.
  • Contributions from companies were viewed as business transactions aimed at securing benefits, which undermined the democratic process and equality in political participation.

What was the Existing System Before the Introduction of EBS?

• Before the enactment of The Finance Act 2016 and The Finance Act 2017, political funding operated under a different framework:
• Contribution Declarations: Political parties were mandated to declare all contributions exceeding Rs 20,000 without any exceptions.
  • Detailed records of donations exceeding Rs 20,000 were required for taxation purposes.
• Limits on Corporate Donations: Companies were subject to a cap on their political contributions, restricted to a maximum of 7.5% of their average net profits from the preceding three years.
• Amendments through The Finance Act 2017: The Finance Act of 2017 brought significant changes to political funding regulations by amending key legislations like the Representation of the People Act, 1951, the Income-tax Act, 1961, and the Companies Act, 2013.
  • These amendments introduced electoral bonds, altering the landscape of political party funding:
• Introduction of Electoral Bonds: Electoral bonds were introduced, effectively removing donation limits for companies.
  • The requirement to declare and maintain records of donations made through electoral bonds was eliminated, streamlining the process of political contributions.

Supreme Court Verdict:

• The recent Supreme Court verdict has reinstated the legal framework that existed before the enactment of the Finance Act, 2017, impacting various statutes:
• Representation of the People Act, 1951: The original Section 29C of the Act mandated political parties to report all donations exceeding Rs 20,000, specifying whether they were from individuals or companies.
  • Amendments introduced by the Finance Act, 2017 exempted donations via Electoral Bonds from this reporting requirement.
  • The Supreme Court overturned this amendment, asserting that the original provision effectively balanced voters' right to information with donors' right to privacy.
• Companies Act, 2013: Section 182(1) previously limited corporate donations to political parties to 7.5% of average net profits over three years.
  • Section 182(3) requires disclosure of all political contributions made by companies.
  • Amendments removed the donation cap and reduced disclosure requirements.
  • The Supreme Court struck down these changes, citing concerns about unchecked corporate influence in electoral processes.
• Income-tax Act, 1961: Section 13A(b) mandated political parties to maintain records of donations above Rs 20,000, including donor details.
  • Amendments exempted Electoral Bond contributions from these reporting requirements and introduced new donation methods.
  • The Supreme Court ruled that exempting Electoral Bond donations from record-keeping violated voters' right to information and struck down both amendments.

Supreme Court's Directives:

• Instructions to SBI: SBI is instructed to immediately halt the issuance of any further electoral bonds.
  • Provide detailed information on electoral bonds purchased by political parties since April 12, 2019, to the Election Commission of India (ECI) by March 6.
  • Furnish specifics including the purchase date, purchaser's name, and bond denomination for each transaction.
• Election Commission's Obligations: The ECI is directed to publish all received data from SBI on its official website by March 13, 2024.
• Return of Electoral Bonds: Electoral bonds within the 15-day validity period, yet to be encashed by political parties, must be returned.
  • The issuing bank will then reimburse the amount to the purchaser's account.

Evaluation of the Latest Ruling:

• The recent Supreme Court ruling establishes a rigorous standard for the state to justify its interference with fundamental rights, even when pursuing a conflicting right.
• It mandates that the state must prove that its action is the "least restrictive" and that no other methods of equal effectiveness exist to achieve its goal.
• Traditionally, the judicial balance between two fundamental rights has often favoured one right over the other.
• In numerous instances, the court has prioritized public interest over individual fundamental rights, thereby granting the state considerable authority.
• For instance, in 2018, the Supreme Court curtailed the right to protest near Delhi’s Jantar Mantar to uphold the right to a peaceful residence and the state's regulatory power over such activities.

What are Electoral Bonds and Why Were They Introduced?

• An electoral Bond is a type of financial instrument that functions like a Promissory Note and an interest-free banking tool.
• Any Indian citizen or organisation registered in India can buy these bonds after fulfilling the Know Your Customer (KYC) norms laid down by the Reserve Bank of India (RBI).
  • Before the introduction of Electoral Bonds, political parties in India relied heavily on donations from individuals and corporate entities to fund their election campaigns and day-to-day activities.
• The need for electoral reforms to address these concerns was highlighted by various stakeholders, including civil society organisations, electoral watchdogs, and the judiciary.
• In response, the government initiated efforts to reform the electoral system and enhance transparency in political funding.
• Electoral Bonds were introduced in India through the Finance Act, of 2017, as a means of reforming political funding and promoting transparency.

Key Features of Electoral Bonds:

• Anonymity: One of the key features of Electoral Bonds is the anonymity of the donor.
  • Unlike traditional forms of political donations, where the identity of the donor is disclosed to the public and the receiving political party, Electoral Bonds allow donors to remain anonymous.
  • This was intended to protect the privacy and security of donors and shield them from potential retribution or harassment.
• Denominations: Electoral Bonds are available in various denominations ranging from ?1,000 to ?1 crore (10 million).
  • Donors can purchase these bonds from notified banks in India, with the State Bank of India (SBI), the largest public sector lender in the country, being the only authorised institution to issue Electoral Bonds.
• Validity: Electoral Bonds have a validity period within which they must be redeemed.
  • As per the existing regulations, the bonds have a validity of 15 days from the date of issuance.
  • This timeframe is designed to ensure that the bonds are promptly encashed by the receiving political parties.
• Transparency: While the identity of the donor remains anonymous, the sale and redemption of Electoral Bonds are recorded electronically by the issuing bank.
  • This electronic tracking system is intended to enhance transparency in the overall process of political funding and enable regulatory authorities to monitor the flow of funds.