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Performance of Parliament during the 17th Lok Sabha

Context: As the term of 17th Lok Sabha is coming to an end, there has been a growing concern over the declining productivity of Lok Sabha in recent times. 

Parliament of India:

  • Parliament as the legislative organ of the Union Government, occupies a pre-eminent and central position in Indian democracy.
  • The Parliament of India consists of three parts- The President, the Council of States (Rajya Sabha) and the House of People (Lok Sabha).
  • Article 79 to 122 of Indian Constitution deals with the Parliament, its composition, powers, and other related aspects.

Functions of parliament:

  • Representative Democracy: Enables representation of various section of society, voice their concerns and participate in decision making. 
  • Responsible Government: 
    • Ensures collective responsibility of the Council of Ministers to the Lok Sabha and by extension to the people of India. 
    • Enables citizens to keep elected executives in control. 
    • Offers various tools for parliamentarians to extract accountability from government. For ex. Zero Hour, Question Hour, Motions and Resolutions etc. 
  • Consociational democracy: Allows differing and fragmented sections of political opinion to come together into stable coalitions over issues. 
  • Deliberative democracy: Highest forum for deliberation over national issues. 
  • Law Making functions:
    • Only institution which can carry out Amendments to the Constitution. 
    • Exclusive power to enact laws under the Union List & Concurrent List of 7th Schedule of the Constitution. 
    • Parliament is also empowered to enact laws under State List under special circumstances.
    • Parliamentary Committees allow members scrutinize functioning of government, its finances and scrutinize legislations effectively.
  • Financial Powers: Union Budget is placed before the Parliament for its approval.
  • Judicial Powers: Impeachment of President and removal of judges of SC and HC.
  • Electoral Powers: Election of the President and Vice-President.

Challenges in the functioning of Parliament: (DEBATE, DIALOGUE, DISSENT)

  • Average number of sittings has come down from 103 (1952) to 56 (2022) – lowest number of sittings in 17th Lok Sabha. 
  • Time lost has gone up from 5% (1985) to around 30% now. 
  • Lack of debates -103rdCAA(EWS)passed without any debate; Criminal reform bills was passed when more than 70% of opposition MPs were suspended. 
  • Drastic reduction on time spent on budget discussion- time spent on discussing union budget, demand for grants and finance bill has declined from 120 hours annually before 1990 to 35 hours post-1990.
  • No private member bill has been passed since 1970 (Total only 14).
  • Weak committee system- In 17th Lok Sabha, only 16% of the bills were sent to parliamentary committee for scrutiny. 
  • Lack of women representation- 14.4% (South Asia including Pakistan >12%, Global around 14%).
  • Disruption (Obstructionism) added on to the three D's- the annual average of bills passed declined from 65 in 1952-90 period to 48 in 1991-2023.
  • Corruption and criminalization- 43% Lok Sabha MPs have criminal records. 

UNDERLAYING CAUSES OF ABOVE CHALLENGES 

  • Lack of inner party democracy and the stringest Anti-Defection law ensures that MPs have to appease party ‘High Command’.
  • Increasing misuse of money power in politics.
  • Mainstreaming of ‘othering’ and ‘majoritarian’ politics 
  • Lack of recorded voting reduces accountability 
  • Speaker-party affiliation manifests in partisan behaviour. 
  • Lack of calendar gives full discretion to the government. 
  • Lack of reforms in rules of Lok Sabha and Rajya Sabha.
  • Decline of consensual nature and idealism in politics as displayed after the freedom struggle.

REFORMS :

  • 15 point formula for parliamentary reforms by former vice-president of India:
    • new political consciousness amongst legislators to review their roles and responsibilities.
    • Political parties must ensure attendance of at least 50% of their legislators throughout the proceedings of the Houses by adopting a roster system.
    • Review whip system hich hinders the freedom of expression of the legislators.
    • Review of the Anti-Defection to rectify the areas like incentivizing legislators to resort to actions that invite expulsion from the party besides providing for time-bound disposal of defection cases by the Presiding Officer.
    • Measures for effective functioning of Department Related Standing Committees like longer tenure (instead of the present one year), promoting specialization, etc.
    • Legislative Impact Assessment: A detailed framework for pre and post Legislative Impact Assessment was needed. 
    • Need for moving away from identity-based voting to that of development-oriented exercise of voting preferences.
    • Need for responsive governments positively acting on the concerns of the opposition and the need for responsible and constructive opposition while resorting to available parliamentary instruments.
    • Building consensus on the proposal o allow unrestricted governance.
    • Enacting for reservation of women in legislatures. It has been done through 106th constitutional amendment.
    • Need for timely and effective action against legislators for non-ethical conduct.
    • Regular publication of reports by the Secretariats of Legislatures on the attendance of Members and their participation in debates.
    • Addressing the concern of a rising number of legislators with criminal records.
    • Setting up of special courts for time-bound adjudication of criminal complaints against legislators.
    • A minimum number of sittings for both the Houses of Parliament and State Legislatures per year need to be appropriately prescribed.
  • Ethical
    • Code of Conduct for MP's (Nolan Committee) 
    • Strengthening of Ethics committee
    • Penalty for unruly behaviour. 
  • Logistical
    • Proper training
    • Minimum number of days 
    • Rajya Sabha - 100 days 
    • Lok Sabha - 120 Days
    • Linking salaries to the performance 
    • Political Parties:
    • Pre-poll coalition (2nd ARC) Midterm realignment must seek fresh mandate 
    • Constructive vote of No confidence 

Dr. T.K. Vishwanathan committee on Arbitration and Conciliation Act, 1996

Context: An expert committee, headed by Dr. T.K. Vishwanathan, set up by the Centre on reforms in the Arbitration and Conciliation Act, 1996, submitted its final report to the government.

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Recommendations given by the Dr. T.K. Vishwanathan committee: 

  • Resolution on corporate disputes can be fast-tracked by creating a separate Arbitration Division in every High Court with regular proceedings and decisions taken expeditiously.
  • Unless there is a stay on enforcement, the enforcing Court should dispose of the petition in nine months and adjournments in proceedings must be granted sparingly only for exceptional reasons.
  • The committee has recommended a model procedure based on prevalent best practices. This model procedure can be used by the arbitral tribunals as a guide.
  • While the oversight by a court is essential to the legitimacy and integrity of the arbitral process, its role must be limited to overall supervision, and a second-look at the post-award stage.
  • There is an urgent need to institutionalise the process of appointment of arbitrators, and minimise court intervention at the very first stage. The courts should endeavour to dispose of applications for appointment of arbitrators without much delay.
  • No upper age limit has been prescribed for accepting appointment as arbitrator. 
  • The arbitrators’ fees were fixed under the Fourth schedule, the Committee has suggested the government provide different fee structures for small and medium value claims and revise the rates periodically to meet the needs of changing times without the need to amend the Act.
  • Any decision to challenge an arbitral award must be based on an honest assessment about the prospects of success, as weighed against the estimated cost of litigation. 
  • The legal personnel in charge of arbitration must find and explain why they are challenging something, and they should assess how likely they are to succeed with the help of a senior lawyer. They should also regularly check how their challenges to arbitration decisions are going.
  • As an alternative, a standing committee of officers may be appointed to immediately examine an award after it is delivered, to decide whether to challenge it, or attempt to settle it. 
  • Fortnightly reviews of all arbitral awards must be undertaken to ensure that the timeline for challenging an award does not expire.
  • Suggesting a separate law for domestic disputes as the UNCITRAL (United Nations Commission on International Trade Law) Model Law is based mainly on the experience of western countries where arbitrations are mostly conducted under the auspices of arbitral institutions.

Future of Election Funding in India after the abolition of Electoral Bond Scheme

Context: Supreme Court has struck down the Electoral Bond scheme as being unconstitutional. This has again raised debates about the model of Electoral funding in India.

Electoral Funding in India: 

  • Representation of Peoples Act, 1951 regulates the election financing landscape in India.
  • Section 77 of the RPA, 1951 and Conduct of Election Rules, 1961 provides for limit on electoral expenditure for contesting candidates.
  • Section 10A of RPA, 1951 provides for the disqualification of candidates for a period of three years for the failure to lodge accounts of election expenses. 
  • Section 29B of RPA, 1951 provides for political funding of parties and there is no limit on funds to be received. Note: It bans foreign funding of political parties in India.
  • Section 29C of RPA, 1951 regulates the disclosure of donations received by political parties and prepare an annual report on it, which is to be submitted to Election Commission of India.
  • Section 182 of Companies Act, 2013 provides for the corporate donations to political parties.

Need for Electoral Funding reforms in India:

  • Supreme Court in Kanwar Lal Gupta case highlighted that financial superiority translates into electoral advantage.
  • Money power in elections has raised the issue of violation of equality and equal footing between the rich and poor candidates.
  • Issue of Black money, bribery, and quid pro quo corruption through electoral funding by private business entities. This was highlighted by Supreme Court in Ashok Shankarrao Chavan case (2014).
  • Capture of government by private individuals and groups in a quid pro quo mechanism.
  • At the same time, the election funding scheme should respect the privacy of donors as there is a possibility of targeting of donors by other parties. 

Legal loopholes:

  • Expenditure on star campaigners is shown in disproportionately in financial reports of parties to hide the real areas of expenditure.
  • Scope of section 77(1) of RPA, 1951 is very narrow. It only applies on election expenditures of a candidate from the date of nomination to the date of declaration of results.
  • There is no limit on election expenditure by a political party.
  • New modes of VOTE for NOTE being devised such as the "Thirumangalam Formula" of Tamil Nadu.

Alternative Models for Election Funding

A. Electoral Trust scheme:

  • In the Electoral Bond Judgement, SC suggested Electoral Trusts as a better model to be followed which balanced the need for transparency of electoral funding and the confidentiality and anonymity of donors.
  • Any company registered under Section 25 of Companies Act, 1956, can form an Electoral Trust.
  • Under Section 17CA of the Income-tax Act, 1961, any citizen of India, a company registered in India, or a firm or Hindu Undivided Family or association of persons living in India, can donate to an electoral trust.
  • The electoral trusts have to apply for renewal every three financial years.
  • They must donate 95% of contributions received in a financial year to political parties registered under Representation of the People Act, 1951.
  • The contributors’ PAN (in case of a resident) or passport number (in case of an NRI) is required at the time of making contributions.
  • Transparency under Electoral Trust Scheme:
    • Electoral trusts are mandated by law to maintain a list of contributions and submit to the Election Commission of India. Such records must also be submitted to income tax commissioner along with an audit report.
    • Electoral Trusts receive donations from various donors and donate to various political parties. This makes it difficult to determine to whom an individual donor may have contributed.
  • During the period 2017-18 — the financial year in which Electoral Bonds were first made available — to 2021-22, the money donated through Electoral Bonds was more than five times the amount that came through the Electoral Trusts.

B. Recommendations of 255th Law Commission Report:

  • Scope of section 77(1) of RPA, 1951 should be enlarged to cover the period spanning date of notification of election to the date to declaration of results.
  • Limits on election related expenditure of political parties should be imposed.
  • The decision regarding funding of political parties should be taken in the Annual General Meeting and not in the meeting of Board of Directors as done presently.

C. State Funding of Elections recommended by Dinesh Goswami and Indrajit Gupta Committee. 

Conclusion

Before finalizing the future models of electoral funding to be adopted, adequate consultation with all stakeholders should take place with the aim to boost transparency and address issues of black money in the election funding. 

Read about Supreme Court Judgement for abolishing Electoral Bond Scheme: Link

Privilege Committees of Lok Sabha & Rajya Sabha

Context: SC stays Lok Sabha privileges panel proceedings on West Bengal BJP MP’s ‘injury complaint’.

Parliamentary privileges

  • Each House of Parliament and its Committees collectively and members of each House individually enjoy certain rights, privileges and immunities without which they cannot perform their functions efficiently and effectively.
  • The object of parliamentary privilege is to safeguard the freedom, the authority and the dignity of Parliament.
  • They are enjoyed by individual members, because the House cannot perform its functions without unimpeded use of the services of its members and by each House collectively for the protection of its members and the vindication of its own authority and dignity.
  • The Constitution has also extended the parliamentary privileges to those persons who are entitled to speak and take part in the proceedings of the house i.e. attorney general of India and Union Ministers.
Collective PrivilegesIndividual privileges
Enjoyed by each house of the parliament collectivelyEnjoyed by the members of each house individually
Right to publish its reports, debates and proceedingsMPs cannot be arrested during the session of Parliament and 40 days before the beginning and 40 days after the end of a session.
Exclude strangers from its proceeding for secret sittingsFreedom of speech in parliament (article 105) and freedom of speech in state assembly (article 194).
Make rules to regulate its own procedure and conduct of businessExempted from jury service, can refuse to give evidence, and appear as a witness in a case pending in a court when parliament is in session
Punish members as well as outsiders for breach of its privileges or its contempt 
Right to receive immediate information of the arrest, detention, conviction, imprisonment, and release of a member 
Institute inquiries and order the attendance of witnesses 
Courts are prohibited to inquire into the proceedings of a house or its committees 
No legal process can be served within the precincts of the House without the permission of the presiding officer 

Committee of Privileges

  • Examines the cases of breach of privileges of the house and its members and recommend appropriate action.
  • Members: 15 members in Lok Sabha and 10 members in Rajya Sabha respectively.
  • The speaker refers the issue of disqualification under the anti-defection rules to this committee for enquiry.
  • can summon relevant individuals for examination and study pertinent documents.
  • After reviewing the incidents or cases brought before it, the Parliament Privileges Committee makes recommendations "as it may deem fit”.
  • The privilege committee of the Rajya Sabha is chaired by the Deputy Chairperson but in Lok Sabha, there is no such rule.

RBI Report on Panchayat Finances

Context: Recently, RBI released a report titled ‘Finances of Panchayati Raj Institutions’ which is based on the data of 2.58 lakh Panchayats for the years 2020-21 to 2022-23, covering about 75% of rural local bodies.  

The report presents an assessment of panchayat finances and their role in India’s socio-economic development.

Fiscal source of Panchayats:

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Types of Grants received by Panchayats

image 109

Fiscal issues and challenges in Panchayat finances:

  • Limited own source of revenue: Panchayat’s own sources of revenues are limited, mainly property taxes, fees and fines. This restricts the financial autonomy of Panchayati Raj institutions and restricts their spending ability. 
  • Heavy dependence on grants-in-aid: Grants from higher level of governments such as Finance Commission and State Finance accounts for a total of 95% of the revenue receipts of the panchayats. Note: Grants from the Central Finance Commission has consistently increased for panchayats since the 73rd Constitution Amendment Act. 
image 110
  • Issues with State Finance Commission: 
    • This over-dependence on vertical transfers is not predictable as states continuously delay the constitution of State Finance Commission. Ministry of Panchayati Raj has highlighted that only 9 states have constituted their SFC by 2022 whereas the scheduled timing in 2019-20. 
    • State governments have even not adhered to its recommendation regarding devolution of financial aspect to panchayats.
  • Performance gap in both tax and non-tax revenues: tax portion of revenue just 1.1% of total revenue whereas non-tax is 3.3%.
  • Lack of fiscal prudence: the ratio of revenue to capital expenditure averaged 3.2 in 2022-23 and the ratio varied between 0.1 in Bihar and 11.5 in Tripura. Investment in capital projects was 29.6% of the total expenditure of Panchayats in 2022-23.
  • Distribution disparity: There are notable differences in the distribution of grants-in-aid to PRIs across states and years.
image 111
  • Various other challenges like inhibition of Panchayat leaders in imposing and collecting taxes, lack of devolution of taxation powers by state government, etc. also exist.

Composition of capital expenditure by panchayats:

image 112

Way Forward:

  • Intensification of efforts by panchayats to augment their own tax and non-tax revenue. Ex: Velpur Gram Panchayat in the Nizamabad district in Telangana effectively generated revenue from internal sources. 
  • Timely establishment of SFCs and prudent adherence to its recommendations.
  • Operational changes in PRIs like transparent budgeting, fiscal discipline, e-governance, robust monitoring and evaluation process, reporting of finances in standardized formats (e-gram swaraj portal), etc.  
  • Empowerment of local leaders and officials, active involvement of the local community to prioritise development needs, etc.

Deputy PM & Deputy CM

Context: The Supreme Court dismissed a PIL challenging the appointment of Deputy Chief Ministers in various states as being violative of Article 14. The Court opined that the Deputy Chief Minister was firstly a minister within the state government and the position was merely a label and nothing more. 

Composition of Council of Minister:

Screenshot 264

Appointment of Deputy Prime Minister and Deputy Chief Minister:

  • Article 74- There shall be a Council of Ministers with the Prime Minister at the head to aid and advise the President.
  • Article 75- The Prime Minister shall be appointed by the President and the other Ministers shall be appointed by the President on the advice of the Prime Minister.
  • Article 163- There shall be a council of ministers with chief minister at the head to aid and advise the Governor.
  • Article 164- The Chief Minister shall be appointed by the Governor and the other ministers shall be appointed by the Governor on the advice of the chief minister.
  • Deputy Prime Minister is appointed Under Article 75 of the Indian Constitution whereas Deputy chief minister is appointed under article 164 of the constitution.
  • Supreme Court in K.M. Sharma vs Devi Lal & Ors (1990) opined that the terminology “deputy” is only descriptive and does not confer on deputy PM any power of Prime Minister. He is like other cabinet minister.
  • Similarly, in the recent PIL case, Supreme Court opined that even a deputy Chief minister, was a minister first and that the post of a 'Deputy Chief Minister' was “only a label”. 
  • Appointment of a deputy Chief Minister has no bearing in the constitutional sense, the label does not provide any extra perks such as a higher salary.
  • The oath to deputy PM to deputy CM is administered as per the third schedule.
  • In the official table of precedence, the deputy PM is ranked above the union cabinet ministers and deputy CM is the ranked above the state cabinet ministers.

NOTE: Sardar Vallabhbhai Patel was the first deputy prime minister of India and first Deputy CM in India was Anugrah Narayan Sinha of Bihar.

Maharashtra Assembly passes bill for providing 10% reservation for Maratha Community

Constitutional background of Reservation in India

  • Article 15(4) and Article 15(5) provide for reservation to Socially and Educationally Backward classes and SC/STs in admission to educationally institutions.
  • Article 15(6) provides for reservation to economically weaker sections of society in admission to educational institutions, added through 103rd constitutional amendment.
  • Article 16(4) provides for reservation to backward classes and SC/STs in public employment.
  • Article 16(6) provides for reservation to economically weaker sections in public employment.
  • Article 335 provides for enabling provision of reservation for Scheduled Castes and Scheduled Tribes to services and posts under the union and the state. However, the efficiency of administration should be maintained.
  • The 77th amendment in 1995 provided for reservation in promotion of any services under the state for SC/STs.

Judicial take on OBC Reservations

  • V.P. Singh government in 1990, declared reservations of 27% government jobs for the OBCs. In the Mandal case or Indra Sawhney case, the Supreme Court upheld the OBC reservation, but imposed certain conditions like ceiling limit of 50% on reservation quota, no reservation in promotion, etc. The court accepted that the Caste continues to be marker for identifying socially and educational backwardness.
  • Similarly, in Janhit Abhiyan Case, Supreme Court upheld the EWS reservation granted through the 103rd constitutional amendment.

Maratha Reservation issue

  • 1997: First major Maratha agitation for reservation in government jobs and educational institutions was organised by the Maratha Mahasangh and the Maratha Seva Sangh. 
  • 2014: Maharashtra government brought 16% reservation for Marathas in government jobs and education. However, the High court put a stay on it and this stay was subsequently upheld by the Supreme Court.
  • 2017: The Maharashtra government then set up Gaikwad Commission to study the social, financial and educational status of Maratha community. Based on commission's recommendation, Socially and Educationally Backward Class Act, 2018 was enacted to provide 16% reservation to Marathas in education and government jobs.
  • 2021:Supreme Court holds Maratha Reservation unconstitutional and strikes down the law. The court opined that the government failed to provide sufficient data to justify exceeding the 50% quota ceiling. But the Supreme Court allowed the State Government to collect empirical data for showing the backwardness of the community.
    • Exceeds the 50% ceiling limit imposed on reservations by Indra Sawhney judgement.
    • Gaekwad Commission report lacks reliable, scientific and adequate data to justify the backwardness of Marathas.
    • The Act created a special class of reservation for Marathas outside the OBC class and violates Article 14, 16 and 19 of the Constitution by bestowing them with special benefits.
    • The Act was passed without complying with procedural requirements mandated by 102nd Constitution (Amendment) Act, 2018.
  • 2023: The State government set up Justice Shukre panel to conduct large scale survey of the community.
  • Salient Features of Shukre Panel's report:
    • Marathas accounted for 28% of the population of the State, of which 84% of them are backward. So, such a large scale of backward community needs to be provided with separate reservation bracket.
    • It gave reasons like decline in agricultural income, partitions in land holdings, extreme poverty as reasons for Maratha's backwardness.
    • 94% of farmers who died by suicide in the state belonged to Maratha community.
    • Inadequate representation of the community in all the sectors of public service, which has kept them excluded from the mainstream.

Issues/Concerns with providing reservations to Marathas

  • Providing community specific reservations will flare similar demands in other provinces.
  • Reservations in Maharashtra will overshoot the 50% limit, hence compromise the principle of superiority of merit.
  • Discriminates other communities by giving Marathas a special privilege.
  • Reinforces the grip of caste-based politics and mobilisation.
  • Against the constitutional structure of providing reservations for SCs, STs, OBC and EBC.
  • Demand for reservations among agrarian communities is due to following reasons:
    • Low income in agricultural households
    • Feeling of relative deprivation
    • Feeling of losing of dominance in rural areas as communities lower in social hierarchy such as SCs have gained economically and politically from the reservations.
    • Low participation in modern economy sectors like IT, Finance, Banking etc.

Thus, the government should be focusing on modernizing agriculture, education and opportunities for these communities.

Conclusion:

So, this time the State government has backed up its Maratha reservation law with broader set of empirical data. But it is now for the Judiciary to decide whether the law stands the test of Constitutionality.

What is Nazool land?

Context: Violence broke out in the Haldwani district of Uttarakhand following a demolition drive carried out by the administration at the location of a mosque and madrasa, purportedly on Nazool land.

Definition of Nazool land: 

  • Nazool land, which is government-owned, is typically not directly managed as state property.
  • Normally, the state allocates such land to various entities on lease for a specific duration, typically ranging from 15 to 99 years.
  • If the lease term is approaching expiration, individuals can seek lease renewal by submitting a written application to the Revenue Department of the local development authority.
  • The government has the discretion to either renew the lease or reclaim the Nazool land by cancelling it.
  • In major cities across India, Nazool land has been assigned to diverse entities for a wide range of purposes.

Emergence: 

  • Under British rule, monarchs and realms that resisted the British often engaged in revolts, resulting in numerous battles with the British Army.
  • Subsequent to defeating these monarchs in conflict, the British frequently confiscated their lands.
  • Following India's attainment of Independence, British renounced the control of these lands.
  • However, due to the frequent absence of proper documentation from kings and royals to substantiate prior ownership, these lands were designated as Nazool land, intended to be under the ownership of the respective state governments.

Governance: 

  • While numerous states have issued government orders to formulate regulations for Nazool land, the primary legislation for Nazool land adjudication is often the Nazool Lands (Transfer) Rules, 1956.
  • The renewal or cancellation of leases is generally managed by the Revenue Department of the local development authority.

So, the land in Haldwani, where the demolition drive occurred, officially designated as Nazool land?

  • According to the Haldwani district administration, the property housing the two structures is registered as the Nagar Nigam (Municipal Council’s) Nazool land.
  • The administration asserts that a demolition drive has been ongoing for the past 15-20 days, targeting encroachments on Nagar Nigam properties to alleviate traffic congestion on roads.

Utilization by the Government: 

  • Typically, the government allocates Nazool land for public use, such as constructing schools, hospitals, Gram Panchayat buildings, etc.
  • In various Indian cities, sizable portions of land categorized as Nazool land have been utilized for housing societies, usually under lease agreements.

Electoral Bond Scheme pronounced as unconstitutional

Context: Constitution Bench of Supreme Court in an unanimous verdict has pronounced the Electoral Bond Scheme for political funding as unconstitutional.

Rationale for introduction of Electoral Bonds

  • Keeping the identity of donors confidential to protect them from retribution from political parties as guaranteed by Right to Privacy to political affiliations.
  • Curbing of black money in political funding

Grounds on which SC held Electoral Bonds to be unconstitutional.  

  • Anonymity of electoral bonds violates the right to information of voters and citizens & transparency of political funding implicit in Article 19 (a) of the Constitution. 
  1. As information about funding of political parties was essential for voters to make right and effective choices in a democracy.
  2. Opaque financial support for political parties can result in quid-pro-quo arrangements because of close nexus between money and politics.
  • Electoral bonds fails the restrictive means test of doctrine of proportionality, as there are means other than electoral bonds to achieve curbing black money.
  • Electoral bonds tilts the balance in favour of right to informational privacy. Thus, the electoral bonds is not the least restrictive measure to balance the right to privacy of donors and right to information of voters in a democracy.

Amendments to Companies Act, 2013 declared unconstitutional: 

  1. Earlier loss-making companies could not donate to political parties. However, amendments allowed even loss-making companies to donate allowing even shell companies to indulge in quid-pro-quo political donations.
  2. Unlike individual’s donations, political contributions by companies are purely business transactions. Thus, treating individual and companies. 

Other observations

  • SBI the issuing bank of electoral bonds will henceforth stop the issue of electoral bonds and furnish the details donations through electoral bonds include name of donors, political parties receiving, and sums involved.
  • ECI will publish the information received from SBI on its website.

Background

  • Electoral bond scheme was announced in Union Budget 2017-18 in an attempt to “cleanse the system of political funding in the country.”
  • The electoral bonds were introduced by amendments made through the Finance Act 2017 to the Reserve Bank of India Act 1934, Representation of Peoples Act 1951, Income Tax Act 1961 and Companies Act.
  • However, there are certain provisions in the scheme, which raised an objection on transparency of political funding itself.
  • Some petitioners had move to the Supreme Court for a plea to stay the Electoral Bonds Scheme.
  • The Election Commission also filed an affidavit to the SC on some provisions in the scheme, which can have serious repercussions on political funding in the country.

Rationale behind introduction of Electoral Bonds

  • To limit the use of cash in political funding: To reduce using illicit means of funding and the ‘system’ was wholly opaque and ensured complete anonymity.
  • To curb black money- due to the following features included in the electoral bonds
    • Payments made for the issuance of the electoral bonds are accepted only by means of a demand draft, cheque or through the Electronic Clearing System or direct debit to the buyers’ account”.
    • Limiting the time for which the bond is valid ensures that the bonds do not become a parallel currency.
  • Eliminate fraudulent political parties- that were formed on pretext of tax evasion, as there is a stringent clause of eligibility for the political parties in the scheme.
  • Protects donor from political victimization- as non-disclosure of the identity of the donor is the core objective of the scheme.

Arguments against the Electoral Bonds Scheme

  • Brings Opacity in the Political Funding- Ordinary citizens are not able to know who is donating how much money to which political party, and the bonds increase the anonymity of political donations-
    • The rules for declaring sources of funding for political parties are outlined in Section 29C of the Representation of the People Act, 1951. Prior to 2017, the Act said all registered parties had to declare all donations made to them of over Rs.20,000. However, an amendment in finance act has kept electoral bonds out of the purview of this section. Therefore, parties will not have to submit records of electoral bonds received to the Election Commission for scrutiny.
    • Further, political parties are legally bound to submit their income tax returns annually under Section 13A of the Income Tax Act, 1961. However, the electoral bonds have also been exempt from IT Act. Thus, removing the need to maintain records of names, addresses of all donors.
    • Opens up possibility of corporate misuse- with the removal of the 7.5% cap on the net profits of the last three years of a company, corporate funding has increased manifold, as there is now no limit to how much a company, including loss-making ones, can donate. Hence, companies can be brought into existence by unscrupulous elements primarily for routing funds to political parties through anonymous and opaque instruments like electoral bonds.
    • Favors ruling party- SBI being a government own ed bank will hold all the information of the donors which can be favorable to the party in power and also deter certain entities from donating to opposition due to fear of penalization.
  • E.g. the data revealed through the Right to Information shows that State Bank of India issued a whopping Rs.1, 716 crore in electoral bonds in just two months of 2019 and the ruling party has received 94.6% of all the electoral bonds sold in 2017-18.

Election Commission’s concerns regarding the scheme

  • Does not allow ECI to check violation of provisions in the Representation of the People Act- as any donation received by a political party through an electoral bond has been taken out of the ambit of reporting under the Contribution Report.
    • E.g. the Representation of the People Act, 1951 prohibits the political parties from taking donations from government companies.
  • Allows unchecked foreign funding- An amendment to the Foreign Contribution Regulation Act (FCRA) allow political parties to receive funding from foreign companies with a majority stake in Indian companies. It can lead to Indian policies being influenced by foreign companies.

Government’s arguments for the Electoral Bonds

  • Limits the use of cash in political funding- as earlier, massive amounts of political donations were being made in cash, by individuals/corporates, using illicit means of funding and identity of the donors was not known. Hence, the ‘system’ was wholly opaque and ensured complete anonymity.
  • Curbs black money- due to the following reasons-
    • Payments made for the issuance of the electoral bonds are accepted only by means of a demand draft, cheque or through the Electronic Clearing System or direct debit to the buyers’ account”. Hence, no black money can be used for the purchase of these bonds.
    • Buyers of these bonds must comply with KYC requirements, and the beneficiary political party has to disclose the receipt of this money and must account for the same.
    • Limiting the time for which the bond is valid ensures that the bonds do not become a parallel currency.
  • Protects donor from political victimization- as non-disclosure of the identity of the donor is the core objective of the scheme. Further, the records of the purchaser are always available in the banking channel and may be retrieved as and when required by enforcement agencies.
  • Has sufficient safeguards- such as donations through bonds received from a domestic company having a majority stake is permitted, subject to its compliance with KYC norms and FEMA guidelines.
  • Eliminate fraudulent political parties- which are formed on pretext of tax evasion, as there is a stringent clause of eligibility for the political parties in the scheme.

Some measures which can complement Electoral Bonds

  • Switch to complete digital transactions.
  • Donations above a certain limit be made public to break the corporate-politico nexus.
  • Political parties should be brought under the ambit of RTI.
  • Establish a national electoral fund where donors contribute and funds are distributed among different parties.

Personally Identifiable Information (PII)

Context: Recently, the Ministry of Corporate Affair fixed a critical vulnerability in its online portal. As per the reports, the vulnerability exposed personal details, like Aadhaar, PAN, voter identity, passport, date of birth, contact number, and communication address of more than 98 lakh directors of Indian companies. 

image 29

Introduction: 

  • Advancements in technology platforms, brought bigger changes in operations of businesses, legislations by governments and individual relations. Cell phones, internet, e-commerce and all other kinds of digital tools have created an explosion in data supply.
  • This ‘Big Data’, is collected, analysed and processed by businesses and shared with other companies, which has in turn enabled them to gain better insight into how to make interaction better with the customers. 

Personally Identifiable Information: 

  • Any data or information maintained by an organisation or agency that can potentially be used alone or with other relevant data to identify or trace a specific individual. 
  • Includes information such as Aadhaar, PAN, voter identity, passport, date of birth, contact number, communication address, and biometric information.
  • Constituents of PII differ depending on an individual’s home country.

This may contain: 

  • Direct identifiers such as Passport Information, that can identify a person uniquely, or;
  • Quasi-identifiers such as Race, that can be combined with other quasi-identifiers like date of birth to successfully recognize an individual.
image 30

Non-PII:

  • Personal data, Non-personal data (such as the company you work for), shared data and anonymized data are not classified as PII.
  • Examples: Photographic images (especially of the face or other identifying characteristics), place of birth, religion, geographic indicators, educational qualifications, etc. 
  • Personal Data: This has a broader range than the PII, such as IP address, device ID numbers, browser cookies, or genetic data.

What are Sensitive and Non-Sensitive PII: 

  • Sensitive PII includes legal statistics such as full name, Social Security Number, driver’s license, financial information, medical records, mailing address, passport information, credit card information. 
  • Such information when exposed can be used to identify a person and potentially cause harm. 
  • Such sensitive PII are stored by employers, government organisations, banks etc
  • Example: An insurance company that is sharing client’s information with a marketing company will not share the sensitive PII. The data shared will be limited to the marketing company’s goal only. 
  • Non-sensitive PII is easily accessible from public sources. This includes: zip code, race, gender, date of birth, social media, religion etc.
  • This cannot be used alone to determine an individual’s identity. 
  • Although non-sensitive, such data is linkable, as when such data is used with other personal linkable information, this can reveal the identity of a person by using De-anonymization and re-identification techniques. 

Threats of PII exposure:

  • The Internet has become a major vector for identity theft. 
  • Data can be found by digging through the trash or unopened mails, which can provide an individual’s name and address. This can also reveal information about the employment, banking relationships or social security networks. 
  • Phishing and social engineering attacks using deceptive-looking website or email, tricks into revealing key information, which can be used to fraudulently open bank accounts, and siphon off funds from accounts. 
  • Information can also be stolen through deceptive phone calls or SMS messages.
  • These threat actors are known to sell exposed PII information on the ‘dark web’. 
  • Lucius, a threat actor found selling data online claimed to have access to a 1.8 terabyte data leak impacting an unnamed ‘India internal law enforcement agency’. 
  • Dark web: It is an encrypted portion of the internet not visible to the general public via a traditional search engine such as Google. It is also known as the darknet and constitutes a large part of illegal activity on the internet. 
  • Threat actors also breach third-party aggregating PII which is also facilitated by weaknesses in digital infrastructure. 

Risks for India:

  • India is ranked fourth globally in all malware detection in the first half of 2023, as per the survey of Resecurity. 
  • A survey of 200 Indian IT decision makers found that 45% of Indian businesses have experienced more than a 50% rise in disruptive cyberattacks in 2023. 
  • The report also found that 67% of Indian government and essential services organisations experienced an increase in disruptive cyberattacks.
  • The data sold on the dark web included one’s Aadhaar number, a unique 12-digit individual identification number issued by the Unique Identification Authority of India (UIDAI). 
  • Certain cases: 
  • In 2023, reports emerged that a bot on Telegram was returning the personal data of Indian citizens who registered with the COVID-19 vaccine intelligence network (CoWIN) portal for vaccination purposes.
  • The government of India denied allegations of a biometric data leak, as well as a breach in the CoWIN portal.
  • The Government however, launched an investigation into the allegations that led to the arrest of a man in Bihar, along with a juvenile in June 2023.
  • A data breach was also reported in the Rail Yatri platform in January 2023. 

How to secure PII?

  • Individuals can take steps to ensure that their PII is not readily available to threat actors. 
  • They can look for HTTPS in URLs when visiting unknown websites. “S” stands for secure and is used by legitimate websites to secure collected information from unsecured connections.
  • Keep a tab on your PII like Aadhaar, passport, PAN, Voter ID, and other important proofs of identity. Avoid sharing or accessing images or details of identity documents through unknown devices. 
  • Keep a tab on your bank account transactions, credit cards, and credit score. A hit in the credit score could mean your PII has been misused to procure credit cards in your name.
  • Users should also be alert and approach emails for unknown sources with caution as stolen information may be used to target users in phishing campaigns.
  • Users can change existing IDs and passwords to ensure that stolen data cannot be used for launching brute force attacks.
  • Users should also implement two-factor authentication for all their accounts and inform the concerned authorities in case they notice any suspicious activity in their online accounts.

The following are the privacy regimes in specific jurisdictions:

India:

  • Country’s Computer Emergency Response Team (CERT-In) is investigating reports of the data leak and the government is working on moving massive amounts of data, including legacy data collected over the past decades, to safe storage.
  • Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021, mandate social media platforms to ensure greater diligence with respect to the content. 

United States: 

  • Government defined ‘personally identifiable information’ in 2020.
  • Anything that can be used to distinguish or trace an individual's identity such as name, social security network and biometrics information; either alone or with other identifiers such as date of birth or place of birth.

European Union: 

  • The definition expands to include quasi-identifiers as outlined in the General Data Protection Regulation (GDPR) which came into effect in 2018.
  • The GDPR is a legal framework that sets rules for collecting and processing personal information for those residing in the EU.

Australia: 

  • Privacy Act 1988 protects personal information.
  • It regulates the collection, storage, use, and disclosure of personal information, whether by the federal government or private entities.

First Information Report: What is an FIR?

The First Information Report (FIR) is the initial step in the criminal justice process, acting as the cornerstone for police investigations in India. Under the Indian Penal Code (IPC) and the Code of Criminal Procedure (CrPC), the FIR plays a pivotal role.

What is an FIR?

An FIR is a written document prepared by the police when they receive information about the commission of a cognizable offense.

Cognizable offenses are those where the police can arrest without a warrant and start an investigation without the order of a court.

Legal Framework

  • Section 154 of CrPC: It mandates the registration of an FIR upon receiving information about a cognizable offense.
  • Pertinent IPC Sections: The FIR relates to various offenses under the IPC, ranging from theft (Section 379) to murder (Section 302).

Importance of FIR

The First Information Report (FIR) is not just a procedural formality but a powerful tool in the Indian legal system. Its importance can be further elaborated as follows:

  1. Catalyst for Legal Action: An FIR is essentially the first formal recognition of a potential crime by the state machinery. It triggers the legal process, compelling the police to start an investigation. Without an FIR, serious crimes might go uninvestigated and unpunished.
  2. Evidence and Credibility: In the court of law, an FIR carries significant weight. Filed closest to the time of the incident, it is often regarded as the most immediate and untainted account of what transpired. The Supreme Court of India has often highlighted the importance of the FIR as crucial evidence.
  3. Preventive Action: The timely filing of an FIR can also lead to prompt action by the police, potentially preventing the escalation of crime or even averting further crimes.
  4. Psychological and Social Impact: For victims, filing an FIR can be a critical step in seeking justice and closure. It validates their experience and serves as an official acknowledgment of their suffering.
  5. Transparency in the Criminal Justice System: The FIR serves as a public record, bringing transparency to the criminal justice process. It ensures that the police cannot refuse to acknowledge the commission of a crime.
  6. Basis for Investigation: An FIR provides the basic information required for the police to begin an investigation. It outlines the preliminary facts and allegations, guiding the investigative process.
  7. Legal Safeguard Against Arbitrary Actions: The FIR acts as a safeguard against arbitrary arrests and detentions. As seen in various judicial pronouncements, the FIR helps in understanding the prima facie nature of the offense, ensuring that police actions are justified and within legal bounds.
  8. Deterrence to Crime: The very existence of a mechanism to promptly and effectively record complaints has a deterrent effect on potential criminals. Knowing that an FIR can lead to immediate police action may discourage the commission of crimes.
  9. Empowerment of the Common Citizen: The FIR empowers citizens, giving them a direct means to involve law enforcement in cases of criminal activity, ensuring that their grievances are officially recorded and actioned.
  10. Statistical and Analytical Tool: FIRs provide valuable data for crime analysis, helping in understanding crime patterns, trends, and hotspots. This data is crucial for effective policing strategies and public safety planning.

FIR is a critical component of the criminal justice system in India, integral to the rule of law and the protection of citizens' rights. Its proper implementation and the adherence to its principles are fundamental to maintaining public trust in the legal system.

Procedure for Filing an FIR

  1. Reporting: The victim or a witness reports the crime at the nearest police station.
  2. Documentation: The police officer in charge must write down the report.
  3. Read Back: The report is read back to the informant to ensure accuracy.
  4. Signature: The informant signs the document.
  5. Free of Cost: Registering an FIR is free.
  6. Copy of the FIR: A copy must be provided to the informant free of charge.

Recent Technological Advances and Schemes

  1. Online FIR Registration: Many states now allow FIRs to be filed online for certain types of crimes.
  2. CCTNS Project: The Crime and Criminal Tracking Network & Systems (CCTNS) is a project initiated by the Indian government for creating a comprehensive and integrated system for effective policing.
  3. E-Beat Book System: A digital solution for managing beat policing more efficiently.
  4. SMS Alerts: Informants receive updates on the status of their FIR via SMS.

Challenges and Criticisms

  • Underreporting: Many incidents go unreported due to various societal and bureaucratic hurdles.
  • False FIRs: Instances of FIRs being used as tools for harassment.
  • Delay in Registration: Sometimes, police delay the registration of FIRs, especially in politically sensitive cases.

Landmark Judgments

  • Lalita Kumari vs. Government of Uttar Pradesh (2014): The Supreme Court mandated the compulsory registration of FIRs in cases of cognizable offenses.
  • Joginder Kumar vs. State of UP (1994): Emphasized the importance of human rights in the context of arrests and detentions related to FIRs.

Way Forwards

The FIR is a fundamental aspect of the Indian legal system, serving as the first step in the journey of justice. With the integration of technology, the process of filing FIRs has become more accessible and efficient.

However, challenges like underreporting and misuse still persist. Continuous reforms and public awareness are key to enhancing the effectiveness of the FIR system in India.

Here are the way forwards that can make the system of FIRs better:

Streamlining the FIR Process

  1. Simplifying Filing: The FIR process should be simplified to encourage more people to come forward without fear or confusion. Simplified forms and clearer instructions can make a difference.
  2. Multiple Language Support: Since India is a country with diverse languages, FIRs should be able to be filed and accessed in multiple regional languages.

Technological Integration

  1. Online FIR Systems: Strengthening online FIR systems to ensure they are user-friendly, secure, and accessible to all sections of society.
  2. Mobile Applications: Developing dedicated mobile apps for FIR filing, tracking, and receiving updates.
  3. Integration with Other Systems: Linking FIR data with other judicial and governmental databases for seamless information flow.

Training and Sensitization

  1. Police Training: Regular training for police officers in handling FIRs, focusing on sensitivity, legal aspects, and technological proficiency.
  2. Public Awareness Campaigns: Conducting awareness campaigns to educate the public about their rights regarding FIRs and how to file them.

Legal Reforms

  1. Strict Adherence to Legal Mandates: Ensuring strict compliance with the Supreme Court's directives, like mandatory FIR registration in cases of cognizable offenses.
  2. Legal Aid: Provision of legal aid to help individuals, especially in marginalized communities, in understanding and navigating the FIR process.

Accountability and Transparency

  1. Monitoring Mechanisms: Establishing robust mechanisms to monitor FIR registration and police response. This could include audit trails and periodic reviews.
  2. Redressal of Grievances: Setting up effective grievance redressal systems for complaints related to FIR filings.

Addressing False FIRs

  1. Penalizing Malicious Complaints: Implementing strict penalties for filing false or malicious FIRs to deter misuse of the system.
  2. Investigative Checks: Ensuring a preliminary inquiry in cases where there is ambiguity or potential for misuse before registering an FIR.

Community Engagement

  1. Community Policing Initiatives: Encouraging community policing initiatives to build trust and improve police-public relationships.
  2. Feedback Systems: Implementing systems for public feedback on FIR processes and police handling.

Research and Development

  1. Data Analysis: Using data analytics to assess FIR patterns, identify areas for improvement, and develop informed policies.
  2. Pilot Projects: Running pilot projects for new initiatives in selected areas before a wider implementation.

Conclusion

The FIR system is a cornerstone of the Indian criminal justice system. Its enhancement through technological integration, legal reforms, training, and public awareness can significantly improve its efficiency and accessibility. By making FIRs more user-friendly and police procedures more transparent and accountable, the legal system becomes more robust, fair, and effective in delivering justice.

Chief Secretary and Current Issue with Extension of its Tenure in Delhi

Context: The Supreme Court of India, through an order, permitted the Union Government to unilaterally extend the tenure of the incumbent Chief Secretary despite the opposition from the Delhi government on allegations of conflict of interest.

Timeline of Current Issue with respect to Service of Chief Secretary in Delhi 

Government of NCT of Delhi vs Union of India Case, 2017 (Service Judgement):

  • In this case, the Supreme Court unequivocally held that references to "state government" in the relevant All India Rules (AIR) or Joint Cadre Rules (JCR) related to Delhi would mean the Government of Delhi.
  • Following this ruling, the Delhi government's recommendation became necessary for extending the Chief Secretary's tenure under Rule 16 of the All India Services (Death-cum-Retirement Benefits) Rules, 1958.

Government of National Capital Territory of Delhi (Amendment) Act, 2021:

  • This act amended Section 21 of the Government of National Capital Territory of Delhi Act, 1991, by inserting subsection (3), specifying that the expression "Government" referred to in any law to be made by the Legislative Assembly shall mean the Lieutenant Governor.

Current Supreme Court Order:

  • The Supreme Court carved an exception for the Chief Secretary of Delhi, asserting that he is differently placed than other officers under the AIR or JCR and is not bound by the Services judgement.
  • Despite the earlier ruling emphasizing the Delhi government's role in extending the Chief Secretary's tenure, the Supreme Court's current order permits the Union Government to unilaterally extend the incumbent Delhi Chief Secretary's tenure. 
  • This decision comes despite the opposition of the Delhi Government, citing serious allegations of conflict of interest against the Chief Secretary, which are currently under investigation.

Chief Secretary of a State 

While the Constitution of India does not have an explicit provision related to the chief secretary of states under Article 166, it provides for the conduct of the business of the state government. Their appointment is an executive action done by the chief minister in the name of governor.

  • Depending on the state, the powers and functions of chief secretaries are defined in the rules of business. 
  • The Chief Secretary is at the apex of the administrative hierarchy of a state. 
  • Many of their functions have evolved through parliamentary custom and convention, and the rules are amended from time to time to accommodate new evolving roles.

Role of Chief Secretary 

The Chief Secretary of a state acts as the ex-officio Secretary to the Council of Ministers and, in that capacity, he is known as the Secretary to the Cabinet and plays an important role in policy formulation.

  1. Head of the Cabinet Secretariat Department: The Chief Secretary oversees the Cabinet Secretariat Department, functioning under the Chief Minister's political leadership.
  2. Work Pertaining to Cabinet Meetings:
    • The Chief Secretary is responsible for preparing agenda papers for cabinet meetings.
    • As the ex-officio Secretary to the Council, they attend cabinet meetings and sub-committee meetings.
    • The Chief Secretary records decisions made in cabinet meetings and forwards copies to the Governor, Chief Minister, and council of ministers.
  3. Participation in the Policy Formulation Process:
    • The Chief Secretary serves as the primary source of information and advice to the Chief Minister and other ministers.
    • Their presence in cabinet meetings is crucial to counterbalance ministers who may be influenced by public opinion or constituency pressure, ensuring decisions are made with long-term considerations.
  4. Role in the Follow-up of Cabinet Decisions:
    • After cabinet decisions, the Chief Secretary oversees the implementation by the secretary of the concerned department.
    • The Chief Secretary has the authority to request documents related to any department's case.
  5. Representation at the National Level Consultations:
    • The Chief Secretary represents the state in national-level consultations, contributing to discussions and decisions on broader issues.

Function and Responsibilities of Chief Secretary 

1.     He chairs an expert body, which decides matters of awarding honours and distinctions.

2.     He deals with matters relating to inter-state disputes.

3.     The Chief Secretary can initiate changes in Rules of Business but the final decision in this respect rests with the cabinet.

4.     All matters of housing accommodation and government buildings and circuit houses fall under his jurisdiction.

The functioning and responsibilities of the Chief Secretary affect all the departments and, therefore, the role of the Chief Secretary as the head of the General Administration Department remains of substantial significance.

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