CURRENT AFFAIRS - 02/04/2024

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CURRENT AFFAIRS – 02/04/2024

CURRENT AFFAIRS – 02/04/2024

The PMLA — a law that has lost its way

(General Studies- Paper II)

Source : The Hindu

The enactment of the Prevention of Money Laundering Act (PMLA), 2002, marked a significant step in India’s commitment to combating the menace of money laundering, particularly stemming from drug trafficking.

By aligning with international resolutions and recommendations, India aimed to fortify its legal framework to prevent the integration of illicit proceeds into the legitimate economy.

Key Highlights

Background to the Prevention of Money Laundering Act (PMLA), 2002
- The international community recognized the severe economic threat posed by the proliferation of black money, particularly stemming from international drug trafficking.
- This concern prompted the United Nations to convene the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances in 1988.
- In response, major industrial nations gathered in Paris in July 1989 to establish the Financial Action Task Force (FATF), tasked with examining and addressing money laundering issues on a global scale.
- United Nations Resolutions
  - The United Nations General Assembly, in 1990, adopted a resolution titled the Political Declaration and Global Programme of Action.
  - This resolution emphasized the imperative for member countries to enact robust legislation aimed at effectively combating the laundering of drug money.
  - Subsequently, in a special session on June 10, 1998, the UN reiterated the urgency of addressing the global drug problem and emphasized the need for concerted efforts to combat money laundering.
- Indian Response
  - India, cognizant of the trans-border nature of drug trafficking and the associated money laundering, aligned itself with international efforts.
  - Drawing from recommendations put forth by the FATF, the Indian government formulated legislation to counter drug money laundering.
  - This culminated in the enactment of the Prevention of Money Laundering Act in 2002 by the Indian Parliament. However, the act was not enforced until 2005.
- Legal Basis and International Obligations
  - The Prevention of Money Laundering Act (PMLA) was enacted by India’s Parliament under Article 253 of the Constitution, which grants authority to legislate for implementing international conventions.
  - Article 253 stipulates that laws enacted to implement decisions of international bodies are limited to the subject matter of those decisions.
  - This aligns with Item 13 of the Union list in the Seventh Schedule of the Constitution, which underscores the specificity of such legislation.
- Original Objective and Circumstances
  - The original intent of the PMLA, as evidenced by the UN resolutions and FATF recommendations, was centered on preventing the laundering of proceeds from drug crimes.
  - The law primarily targeted offenses listed in the Indian Penal Code (IPC) and the Narcotic Drugs and Psychotropic Substances Act, 1985, which were directly related to drug trafficking and money laundering activities.
  - Expanding Character through Amendments
    - Despite its initial focus on combating drug money laundering, the PMLA underwent amendments that expanded its scope and applicability.
    - Originally designed to address crimes associated with drug trafficking, the law gradually incorporated a broader range of offenses unrelated to its original purpose.
    - This expansion extended liability not only to those directly involved in generating crime proceeds but also to individuals involved at later stages of the laundering process, regardless of their connection to the initial criminal activity.
    - One striking example of this expansion is the inclusion of the Prevention of Corruption Act, 1988, in the schedule of offenses in 2009.
    - This addition subjects public servants accused of corruption to the rigorous provisions of the PMLA, treating them similarly to hardcore drug traffickers.
    - Such expansion extends the application of the PMLA to offenses that may not generate crime proceeds on a scale significant enough to threaten the economy or endanger national sovereignty.
  - Presumption of Guilt and Denial of Bail
    - One of the most contentious aspects of the PMLA is its departure from the fundamental principle of Anglo-Saxon jurisprudence that presumes innocence until proven guilty.
    - The law reverses this principle by presuming the accused guilty until proven innocent.
    - Section 45 of the PMLA restricts the grant of bail, stipulating that a judge can only grant bail if satisfied of the accused’s innocence, effectively denying bail to individuals accused under the PMLA.
    - This provision can lead to prolonged pre-trial detention, infringing upon the accused’s rights and potentially resulting in extended periods of incarceration without trial.
    - Judicial Scrutiny and Constitutional Challenge
      - In the case of Nikesh Tarachand Shah vs Union of India (2018), a two-judge Bench of the Supreme Court declared Section 45 unconstitutional, citing violations of Article 14 (Right to Equality) and Article 21 (Right to Life and Personal Liberty).
    - Parliamentary Response and Restoration
      - Following the Supreme Court’s ruling, Parliament swiftly acted to restore the bail provision with certain amendments.
      - This amended provision was subsequently upheld by a three-judge Bench, led by Justice A.M. Khanwilkar, in the case of Vijay MadanlalChoudhary vs Union of India (2022).
      - The court deemed the provision reasonable and directly aligned with the objectives of the PMLA, effectively reversing the previous decision.
    - Legislative Policy and Inclusion of Offenses
      - The inclusion of various offenses, including less serious ones, in the schedule of the PMLA has been subject to judicial scrutiny.
      - While the legislative policy determines the offenses listed in the schedule, questions arise regarding the appropriateness of applying stringent bail provisions to offenses that may not pose significant threats to economic stability or national security.
      - The judicial approach to bail in PMLA cases has evolved over time, with differing perspectives from various justices.
      - The foundational principle of personal liberty, as articulated by Justice V.R. Krishna Iyer in GudikantiNarasimhuluAndOrs vs Public Prosecutor, High Court Of Andhra (1978), emphasizes the importance of judicial discretion in safeguarding individual and community interests.

About the Prevention of Money Laundering Act (PMLA), 2002

History and Objectives:
- The PMLA 2002 was enacted in response to India’s commitment to combat money laundering globally, aligning with various international conventions and frameworks.
- Its primary objective is to prevent and control money laundering, defined as concealing or disguising the proceeds of crime or projecting it as untainted property.
- The Act aims to confiscate property derived from or involved in money laundering, penalize offenders, and appoint authorities to handle related matters.
Key Provisions:
- Reporting Obligations: Entities like banks and financial institutions must report suspicious transactions to the Financial Intelligence Unit (FIU) and comply with Know Your Customer (KYC) norms.
- Punishment: The Act provides for rigorous imprisonment ranging from three to ten years, depending on the amount involved in money laundering.
- Attachment and Confiscation: Authorities can attach and confiscate property at any stage of investigation, with confiscated property being sold by the government.
- International Cooperation: The Act allows for international cooperation in investigating and prosecuting money laundering offenses.
Authorities and Enforcement:
- Enforcement Directorate: This body, under the Ministry of Finance, has the authority to investigate money laundering matters in India.
- Financial Intelligence Unit-India (FIU-IND): An autonomous body responsible for receiving, analyzing, and disseminating information on suspicious transactions.
- Other Investigative Agencies: Various agencies like local police, CBI, and customs departments investigate scheduled offenses under the Act.

What is money laundering?

Money laundering is the process of concealing the origins of illegally obtained money, typically through a series of complex financial transactions, in order to make it appear as though the money has been obtained legitimately.
The primary goal of money laundering is to obscure the trail of illicit funds, making it difficult for law enforcement agencies to trace the money back to its criminal origins.

Solar surge : Moving away from imported solar panels

(General Studies- Paper II and III)

Source : The Hindu

The government has initiated a policy aimed at reducing reliance on imported solar panels by implementing the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirement for Compulsory Registration) Order, 2019.

This order mandates module makers to undergo inspection of their manufacturing facilities by the National Institute of Solar Energy.
Approval certifies legitimate domestic manufacturing and eligibility for government tenders, including flagship solar energy programs like the PM solar rooftop scheme.

Key Highlights

Context and Objectives
- The policy seeks to curb imports from China, which dominates 80% of the global solar panel market.
- India has ambitious goals of sourcing 500 GW of electricity from non-fossil fuel sources by 2030, requiring approximately 280 GW from solar power.
- However, India’s domestic industry struggles to meet this demand, resulting in significant reliance on imports.
- The delay in implementing the approved list exacerbates the challenge faced by domestic manufacturers, who must pay for certification while losing orders to cheaper Chinese panels.
Implementation and Challenges
- Despite government claims of being on track to add 25-40 GW of solar capacity annually, actual installations have been limited, partly attributed to the COVID-19 pandemic.
- The government has now decreed the implementation of the approved list from April 1 to address the demand-supply gap.
- However, meeting targets necessitates stringent quality checks on domestic manufacturers to ensure affordability without compromising on quality or cost solely for nationalistic reasons.
Ensuring Success and Sustainability
- The success of the policy hinges on India meeting its 2030 commitments while ensuring affordable solar power for its citizens.
- This entails fostering a domestic industry capable of meeting demand and maintaining high-quality standards.
- While promoting growth and reputation as a quality exporter, the Indian solar industry must avoid shortcuts that compromise long-term sustainability and integrity.

About the National Institute of Solar Energy

The National Institute of Solar Energy (NISE) is a prominent research and development organization in India, focusing on the field of solar energy.
Established in 2013, NISE operates as an autonomous institution under the Ministry of New and Renewable Energy (MNRE).
Establishment:
- NISE was officially registered under the Haryana Societies Registration Act on October 24, 2013, with the aim of conducting and promoting research and development in solar power in India.
Objectives:
- The primary goal of NISE is to advance research in solar energy technologies, act as a national resource center for solar energy, and provide technical assistance to government agencies and private organizations.
Location:
- Headquartered in Gurgaon, Haryana.
Research Areas:
- NISE conducts research on various aspects of solar energy, including photovoltaics, solar thermal systems, and solar resource assessment, contributing to the development and advancement of solar technologies in India.

About the PM solar rooftop scheme

The PM Surya GharMuftBijliYojana, also known as the PM Solar Rooftop Scheme, is a initiative launched by the Indian government to promote the adoption of solar energy among households.
Launch and Objectives:
- The scheme was launched to provide free electricity to households opting for rooftop solar electricity units, aiming to light up one crore households by offering up to 300 units of free electricity every month.
Financial Assistance:
- The scheme offers subsidies for installing rooftop solar panels, with households eligible for financial assistance for systems up to 3 kW capacity, covering a significant portion of the installation cost.
Benefits:
- Apart from reducing electricity bills, households can earn additional income by selling surplus power to distribution companies, contributing to green goals and reducing carbon emissions.
Eligibility:
- All households can apply for the scheme, with subsidies available for rooftop systems up to 3 kW capacity, subject to using ‘Made in India’ solar panels and installation by a government-approved vendor.
Subsidy Coverage:
- The subsidy program covers 60% of the cost for systems up to 2 kW capacity and 40% for systems between 2-3 kW, providing financial assistance of up to Rs 78,000 for systems of 3 kW capacity or higher.
Installation and Process:
- Application Process: Interested households can apply for the scheme through the official portal, providing necessary details like state, district, and electricity Distribution Company, and following the registration process.
- Installation and Net Metering: The installation involves connecting solar panels to the central power supply unit, enabling households to sell surplus energy back to the grid through net metering, thereby reducing overall electricity bills.
- Financial Support: Households are required to pay at least 40% of the installation cost upfront, with the remaining balance covered by the subsidy, and the option to avail loans at concessional rates for the initial investment.
Impact and Future Goals:
- The scheme is expected to add 30 GW of solar capacity through rooftop solar in the residential sector, generating significant electricity and reducing CO2 emissions over the system’s lifetime.
- It is estimated that the scheme will create around 17 lakh direct jobs in various sectors related to solar energy, contributing to economic growth and employment generation.

In an all-time high, defence exports cross₹21,000 crore

(General Studies- Paper III)

Source : The Hindu

Defence Minister Rajnath Singh announced that India’s defence exports had reached an unprecedented milestone, crossing ₹21,000 crore (approximately $2.63 billion) for the first time in history.

This remarkable achievement signifies a substantial growth of 31 times over the past decade compared to FY 2013-14, as reported by the Ministry.

Key Highlights

Growth Trends and Government Initiatives
- Defence exports have witnessed a spectacular growth rate of 32.5% over the previous fiscal year, attributed to various initiatives undertaken by the Defence Ministry.
- These initiatives aimed to stimulate India’s defence manufacturing and exports, leading to commendable performance by both the private sector and Defence Public Sector Undertakings (DPSUs).
- Contribution of Stakeholders
  - The private sector and DPSUs have played significant roles in driving defence exports, contributing approximately 60% and 40%, respectively.
  - The increase in export authorizations issued during FY 2023-24, rising from 1,414 to 1,507, further underscores the growing momentum in defence exports.
- Long-term Growth Trajectory
  - Comparative data spanning two decades reveals an impressive growth trajectory in defence exports, with a 21-fold increase from ₹4,312 crore during 2004-05 to ₹88,319 crore during 2014-15 to 2023-24.
  - This exponential growth reflects the global acceptance of Indian defence products and technologies.
- India’s Position as the Largest Arms Importer
  - Despite significant strides in defence exports, India remains the world’s largest arms importer for the period 2019-23, with imports increasing by 4.7% compared to the 2014-18 period, according to data from the Stockholm International Peace Research Institute (SIPRI).

Ladakh’s protest

(General Studies- Paper II)

Source : The Hindu

On March 6, SonamWangchuk, a renowned educationist and environmentalist from Ladakh, initiated a 21-day hunger strike in Leh, a town situated at approximately 3,500 meters in the cold and arid Union Territory (UT) of Ladakh.

Wangchuk termed this hunger strike a “climate fast” aimed at supporting the demands of thousands of Ladakh residents for safeguards under the Sixth Schedule of the Indian Constitution.
These safeguards would empower them to make decisions regarding the utilization and management of crucial resources such as land and water, which they are currently unable to do.

Key Highlights

Background and Context of the Hunger Strike
- The demand for safeguards under the Sixth Schedule arises from the changes implemented in August 2019, when the erstwhile State of Jammu and Kashmir was bifurcated into two Union Territories: Jammu and Kashmir and Ladakh.
- This division resulted in the loss of people’s exclusive rights to land and jobs.
- Ladakh, under the Jammu and Kashmir Reorganisation Act, 2019, became a UT without a legislature, leaving its administration to a Lieutenant Governor who is not a resident of Ladakh.
- This lack of local representation in decision-making processes concerning their future has spurred discontent among the residents.
- The main grievance voiced by the Leh Apex Body (LAB), a collective of political, social, religious, and student organizations representing the Buddhist-majority Leh district, is the lack of local representation in decision-making processes.
Challenges Faced by Ladakh Residents
- Lack of Local Representation in Decision-Making
  - Key bureaucratic positions in Ladakh are occupied by individuals who are not residents of the region.
- Powerlessness of Ladakh Autonomous Hill Development Councils (LAHDCs)
  - The existing LAHDCs in Leh and Kargil have been rendered powerless since Ladakh was declared a Union Territory.
  - Despite having authority over land use and management, these councils are excluded from decision-making processes, such as the Ladakh Industrial Land Allotment Policy, 2023, designed to attract investments.
- Loss of Grazing Land and Lack of Intervention
  - Villagers in border regions of Ladakh are losing grazing land to China and industries planning renewable energy projects.
  - However, affected residents lack the authority to intervene in matters concerning their land, exacerbating their grievances.
- Potential Solutions under the Sixth Schedule
  - The Ladakh Autonomous Hill Development Councils (LAHDCs) advocate for the implementation of the Sixth Schedule, which would establish regional and district councils with legislative powers over land use for grazing, agriculture, residential purposes, and other interests of residents.
- Demands and Negotiations with the Centre
  - LAB-KDA representatives have engaged in discussions with the government at the Union level.
  - These demands include safeguards under the Sixth Schedule, statehood or UT with a legislature status for Ladakh, a separate Public Service Commission, and separate parliamentary seats for Kargil and Leh.
  - However, the Centre has not yet accepted these demands.
- Tourism Influx in Ladakh: Impact on Resources
  - Recent data from the Ministry of Tourism highlights a significant increase in domestic tourist arrivals in Ladakh, with over 5 lakh visitors in 2022.
  - The town of Leh, Ladakh’s largest town, has experienced a substantial rise in tourist numbers, from just over half a lakh in 2007 to 3.2 lakh in 2018.
  - This surge in tourism has led to rapid urbanization and increased pressure on local resources, particularly water.
  - Impact of Rapid Urbanization and Tourism
    - The expansion of built-up areas in Leh, from 36 hectares in 1969 to 196 hectares in 2017, indicates the extent of urbanization.
    - Additionally, the influx of tourists places significant stress on resources, especially water.
    - A research article published in 2019 highlighted that tourists in Leh consume approximately 100 litres of water per day during summers and 60 litres during winters, compared to locals who use 75 litres in summers and 50 litres in winters.
    - Moreover, poor individuals, including migrant workers, have access to only 25-35 litres per person per day, leading to increased dependence on often contaminated underground water sources.
    - Although, it has been emphasized that the issue lies in water management rather than availability.
    - The pressure on resources peaks during the tourist season, particularly between May and July, when around 70% of tourists visit Ladakh.
  - Climate Change Impacts in Ladakh
    - Extreme Weather Events
      - Ladakh has experienced a surge in floods, landslides, and extreme rainfall events over the past two decades.
      - Flash floods in August 2010 resulted in significant casualties, with nearly 255 fatalities in Leh.
      - Glacial lake outburst floods (GLOFs) in August 2014 and 2021 also caused damage to infrastructure and homes in Gya and Rumbak villages, respectively.
    - Glacial Lake Expansion
      - Ladakh is home to approximately 192 glacial lakes, and research indicates that rising temperatures due to global warming are causing the expansion of these lakes.
      - This phenomenon, along with glacier shrinkage, increases the risk of GLOFs, particularly from proglacial lakes formed at glacier edges.
    - Permafrost Degradation
      - Increasing temperatures are leading to the degradation of permafrost in Ladakh, contributing to mudflows in the region.
    - Temperature Trends
      - Data from the India Meteorological Department’s Meteorological Centre at Leh reveals a slight increase in Ladakh’s minimum temperature over recent years.
      - While the lowest minimum temperature recorded in 2011 was minus 23.6 degrees Celsius, subsequent years saw less extreme values, indicating a warming trend.
    - Environmental Threats from Economic Activities
      - Despite the challenges posed by climate change, Ladakh is attracting interest from mining and renewable energy companies, leading to concerns about environmental degradation.
      - Increased tourism exacerbates the situation, with pollutants settling on snow and ice, accelerating melting processes.
      - Mining activities in Ladakh raise concerns about slope instability and landslides.
      - Dust from mining operations settling on glaciers can further accelerate melting, posing additional risks to the region’s fragile ecosystem.

About Ladakh

Ladakh, a region in India, is a unique and culturally rich destination known for its stunning landscapes, Buddhist heritage, and strategic importance.
Geography and Climate:
- Ladakh is situated in the northern and eastern Kashmir region of the northwestern Indian subcontinent, bordered by the Tibet Autonomous Region to the east, Himachal Pradesh to the south, Jammu and Kashmir and Gilgit-Baltistan to the west, and Xinjiang to the north.
- The region is characterized by high plains, deep valleys, and mountain ranges like the Ladakh Range and the Karakoram Range, with elevations ranging from 2,550 meters to 7,742 meters above sea level.
- Ladakh experiences a cold and dry climate with minimal precipitation, mainly in the form of snow.
- The vegetation is limited to valleys and sheltered areas, supporting crops like wheat, barley, and millet.
Culture and Society:
- Ladakh is sparsely populated, with a diverse demographic composition including Muslims (mainly Shia), Tibetan Buddhists, and Hindus, along with pastoral Changpa nomads in the mountain slopes.
- The region’s culture and history are closely linked to Tibet, evident in its Buddhist monasteries, prayer flags, and traditional practices.
- Ladakh has a rich heritage of art, architecture, and religious traditions.
- Since opening up to tourists in 1974, Ladakh has experienced changes in lifestyle, economy, and culture due to increased tourism, trade, and exposure to external influences.
Administrative Status:
- Ladakh was established as a union territory of India on October 31, 2019, following the Jammu and Kashmir Reorganisation Act.
- Prior to this, it was part of the Jammu and Kashmir state, making it the largest and second least populous union territory in India.

Team led by PRL Ahmedabad finds ozone on Jupiter’s moon

(General Studies- Paper III)

Source : The Hindu

An international team of scientists, including researchers from India, has made a significant discovery indicating the presence of ozone on Jupiter’s moon Callisto.

The findings, published in the March 2024 issue of the journal Icarus, shed light on the complex chemical processes occurring on icy celestial bodies within the Solar System.

Key Highlights

Chemical Evolution of SO2 Astrochemical Ice
- The study focuses on the chemical evolution of “SO2 astrochemical ice,” primarily composed of sulphur dioxide (SO2), under ultraviolet irradiation.
- By analyzing the UV absorption spectra of irradiated ice samples, the researchers identified a distinct signature indicating the formation of ozone.
- This research offers insights into the chemical processes and composition on the surface of Callisto.
- To validate their findings, the scientists compared them with data from the Hubble Space Telescope.
- This comparative analysis aimed to understand Callisto’s environment and assess the potential habitability of icy moons within the Solar System.
Significance of Ozone
- The ozone layer plays a crucial role in supporting life on Earth by shielding the planet from harmful ultraviolet radiation emitted by the Sun.
- Ultraviolet radiation, particularly ultraviolet-B and ultraviolet-C wavelengths, can damage DNA, trigger mutations, and increase the risk of skin cancer and other health issues in humans.
- Moreover, ultraviolet light inhibits plant growth and can have detrimental effects on various organisms.
- Protective Role of Ozone Layer
  - Located in the lower part of Earth’s stratosphere, approximately 15-35 km above the ground, the ozone layer acts as a shield against ultraviolet-B and ultraviolet-C radiation.
  - Without the ozone layer, the planet’s surface would experience significantly higher levels of harmful radiation, rendering it uninhabitable for many species and disrupting ecosystems.
- Implications for Celestial Bodies
  - The discovery of ozone on celestial bodies like Callisto suggests the existence of stable atmospheric conditions and raises the possibility of these bodies being able to support life.
  - Scientists are actively studying various celestial bodies within the Solar System to assess their potential habitability based on the presence of ozone and other key factors.
- Introduction to Callisto
  - Callisto, one of Jupiter’s largest moons, holds a significant place in the Solar System as the third-largest moon overall, following Ganymede and Titan.
  - Its size rivals that of the planet Mercury, although it possesses less than half the mass.
  - What distinguishes Callisto is its unique composition, primarily consisting of water ice, rocky materials, sulphur dioxide, and some organic compounds.
  - This composition makes Callisto a promising candidate for harboring life beyond Earth within the Solar System.
  - Surface Characteristics
    - Callisto’s surface bears the marks of its tumultuous past, evident in its heavily cratered terrain.
    - These craters, indicative of numerous asteroid and comet impacts, suggest a history stretching back billions of years, possibly making Callisto home to the oldest surface in the Solar System.
  - Geological Inactivity
    - Unlike some of Jupiter’s other moons, such as Io and Europa, which exhibit significant seismic activity, Callisto appears geologically inactive.
    - Its surface features relatively few geological formations, indicating a long period of stability.
    - This stability is crucial as it may preserve any subsurface ocean or potential habitats hidden beneath the icy crust.
  - Implications for Potential Life
    - The detection of sulphur dioxide on Callisto’s surface has piqued scientific interest, prompting further investigation into its surface composition and formation through spectroscopic observations.
    - The relatively stable surface and diverse chemical composition enhance the moon’s potential as a site for studying astrobiology and understanding the conditions necessary for life to thrive beyond Earth.
  - Implications for Habitability
    - The presence of ozone on Callisto suggests the presence of oxygen, a crucial component for the formation of complex molecules necessary for life as we understand it.
    - This discovery raises intriguing questions about the potential habitability of Callisto and other icy moons in our Solar System.
  - Insights into Planetary Processes
    - In addition to ozone, researchers identified an unidentified band in the absorption spectrum, similar to observations made on Ganymede in 1996. This similarity hints at common molecular sources in the surface compositions or chemical processes of these moons.
  - Significance for Planetary Science
    - The discovery of ozone on Callisto offers valuable insights into the geological and atmospheric processes occurring on these moons.
    - By understanding these processes, scientists can deepen their understanding of the formation of Jupiter and its moons, contributing to ongoing research in planetary science.