Jan-17P Flashcards

1
Q

1.1. PUBLIC ACCOUNTS COMMITTEE

A

Why in news?
 RBI governor Urjit Patel appeared before the committee to brief it on the impact of demonetization.
 A controversy also arose over whether the PAC can summon the Prime Minster.

About Parliamentary Accounts Committee
 It has been in existence from 1921 and was formed under the Government of India Act, 1919.
 It is constituted by the Parliament each year for parliamentary oversight over finances of the government.
 It is a joint committee consisting of 15 members from Lok Sabha and 7 from Rajya Sabha who are elected according to principle of proportional representation by means of the single transferable vote.
 Since 1967, its chairman by convention is selected from the Opposition parties.
 The committee is empowered to call witnesses to give evidence and produce documents required by the committees.
 All the deliberations of the committee are confidential.
 The government submits an Action Taken Report on the recommendations of the PAC which is then laid before the parliament.

Primary Functions of the Committee
 To examine the appropriation accounts and the finance accounts of the Union government and any other account laid before the Lok Sabha.
 In scrutinizing the Appropriation Accounts and the Reports of the Comptroller and Auditor-General thereon, it is the duty of the Committee to satisfy itself:
 that the money shown in the accounts as having been disbursed were legally available for and, applicable to the service or purpose to which they have been applied or charged;
 that the expenditure conforms to the authority which governs it; and
 that every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority
 To examine audit reports of various autonomous and semi-autonomous bodies, the audit of which is conducted by the CAG.
 It considers the justification for spending more or less than the amount originally sanctioned.
 The functions of the Committee extend however, “beyond, the formality of expenditure to its wisdom, faithfulness and economy” and thus the committee examines cases involving losses, nugatory expenditure and financial irregularities
 The Committee examines cases involving under-assessments, tax-evasion, non-levy of duties, misclassifications etc., identifies the loopholes in the taxation laws and procedures and makes recommendations in order to check leakage of revenue

Issues
 Secrecy: The meetings of the committee are closed door meetings. In contrast, in USA statements made before committees are telecast live while in UK, meetings of committee are open to public.
 The members of the committee lack technical expertise required to go into intricacies of accounting and administrative principles.
 The work of the committee is more in the nature of a post-mortem exercise and is not effective in preventing losses.
 While other Department Related Standing Committees can adopt reports with dissent notes by some members, the PAC must adopt all reports by consensus. This is unique about the PAC, and helps it maintain neutrality
 It does not have suo motu powers of investigations.
 Politicization of the proceedings:
 With greater public interest shown in some issues like 2G scam, members have started taking strict party lines in committee meetings.
 Even during the UPA government, the then PAC Chairperson Murli Manohar Joshi’s decision to summon Prime Minister Manmohan Singh in connection with the 2G scam had triggered a massive controversy.

Way Forward
 A stipulated time limit within which CAG audit reports should be presented to the Parliament.
 A time limit should be fixed for government departments to submit Action Taken Report.
 The PAC should have suo motu powers of investigations.
 Sufficient technical assistance should be provided to them through Lok Sabha or Rajya Sabha Secretariats.
 Testimony of witnesses should be made public either by telecasting it or allowing the Press or by making the transcript of testimony public.
 Minutes of meeting of the PAC should be made public.
 The general public should be allowed to view evidence proceedings of committees.

Box–Towards Openness and Transparency
In 2016, a committee of the Delhi Vidhan Sabha looking at irregularities in sports administration bodies of cricket and hockey allowed the press to view its proceedings.
In 2008, the Goa Vidhan Sabha had also opened up its committee meetings to both the public and press.
In the 13th Lok Sabha, the chairman of the joint committee examining the Stock Market Scam briefed the press at the end of each committee meeting.

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2
Q

1.2. SECTION-19 OF PREVENTION OF CORRUPTION ACT

A

Why in News?
 Recently Supreme Court upheld a past judgement that a
court initiated investigation against a public servant would
require previous sanction of government.

Background
 Section 19 of the PC Act puts a bar on the court to take
cognizance of an offence by a public servant except with the previous sanction of government.
 The bar is against the court to take cognizance for the purposes of trial.
 But as per Sec 19, there is no prohibition to start an investigation by lodging an FIR or through a court-initiated investigation under Section 156(3) CrPC.

Issues involved
 The objective of Sec 19 of PC Act is –
 Obligating the government to Protect honest officers and those acting in good faith towards their duty from frivolous complaints.
 Letting the public servants take decisions for good governance without fear or harassment.
 Previous sanction protects the corrupt public servants, which goes against transparency and accountability.
 SC decisions have created confusion over the status of Sec 19 in PC Act and previous sanction. This can be a potential harm to the delivery of good governance.
 Such judgement may also erode trust of the public over the public administration and judiciary.

Prevention of Corruption Amendment Bill 2016- Contentious provisions on prior sanction
 Complaints regarding corruption on decisions taken or recommendations made by public servants on official duty shall not be investigated without the prior approval of the Lokpal or Lokayuktas, as the case maybe.
 The prior approval will be extended to the retired officials too.

Way Forward
 The independence of criminal investigation from the executive is a sine qua non for success of a criminal justice system, especially in corruption cases. It is imperative that the SC should correct the apparent anomalies in the state of the law on sanction.

Box–1-Previous Sanction under Sec 19 (1) PC Act
It is given by Union government if Union government has power to remove the official.
It is given by State government if State government has power to remove the official.
In case of other public servants, it is given by competent authority.

Box–2-Chronology of the previous judgments
1951 - R.R. Chari v/s State case - SC held that there was no requirement of sanction for investigation under Section 156(3) CrPC.
1998 - State of Rajasthan v/s Raj Kumar case - SC upheld no need for sanction before filing a charge sheet under Section 173 CrPC.
2013 - Anil Kumar v/s M.K. Aiyappa case - SC upheld that Section 19 applies at the threshold itself and investigation under Section 156(3) CrPC requires a prior sanction.
2014 - Subramanian Swami v/s Union of India case - Section 6A of Delhi Special Police Establishment Act requiring prior sanction, was made unconstitutional.
2016 - L. Narayana Swamy v/s State case – SC upheld the decision of 2013.
2016 – Karnataka High Court in NC Shivkumar v/s the State has said that 2016 SC judgement ignored the settled principles of earlier judgments rendered by larger benches.

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3
Q

1.3. SECTION 123(3) OF REPRESENATION OF PEOPLE ACT,1951

A

Why in News?
 A seven-judge Supreme Court bench ruled by a 4-3 majority that “religion, race, caste, community or language would not be allowed to play any role in the electoral process”
 It also said that election of a candidate would be declared null and void if an appeal is made to seek votes on these considerations.

The Judgement
 The judgment was handed out as an interpretation of Section 123(3) of the Representation of the People Act, 1951.
 Section 123(3) deals with abiding to “corrupt practices” for canvassing votes in an election.
 The bench had at hand the task of the interpreting the word “his” in section 123(3) in RPA.
 The majority believed that “his” here refers to the any candidate or his agent or any other person making the appeal with the consent of the candidate or the elector. To justify this interpretation, the bench took cues from various amendments of RPA.
 It also said that to maintain the “purity” of the electoral process; certain arguments must be taken off the table such as religion, caste and language.
 The dissenting judges on other the hand believed that Section 123(3) of the RPA does not require such a broad interpretation and the word “his” does not include the elector/voter.
 The dissenting judges remarked that markers such as religion are deeply rooted in the structure of the Indian society.
 The bench abstained from commenting on the “Hindutva” case.

Criticism
 It is difficult to define what kind of an appeal is religious appeal.
 This interpretation violates the right to freedom of speech under Article 19.
 RPA already has provisions to curb hate speech or speech that
spreads enmity.
 A broad interpretation “outlaws” parties like Akali Dal whose very name violates this interpretation.

Box–1-Section 123(3) of RPA Act, 1951 declares a corrupt practice if:
“The appeal by a candidate or his agent or by any other person with the consent of a candidate or his election agent to vote or refrain from voting for any person on the ground of his religion, race, caste, community or language…..”
The word “his” was included through an amendment in 1961.

Box–2-Hindutva Case
In 1995, a three-judge bench ruled that seeking votes in the name of Hindutva was not a corrupt practice as Hindutva was not a religion but a “a way of life”

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4
Q

1.4. PRE-CENSORSHIP TO REGULATE MEDIA

A

Why in news?
 The Supreme Court rejected a PIL for pre-broadcast or pre-publication censorship of the media by the court.
 It said that role of a court or a statutory body will come only after a complaint is made when the content is published.

Ground for Rejection of Pre-Censorship
 The Supreme Court relied on Article 19(1)(a) which guarantees Right to freedom of speech and expression.
 Earlier in Romesh Thapar case, the Supreme Court expressed that there could not be any kind of restriction on the freedom of speech and expression other than those mentioned in Article 19(2).

Current scenario of Regulatory Mechanism
 The electronic media in India is mostly self-regulated.
 A lot of private channels by themselves have set up the News Broadcasting Standards Authority (NBSA) of India which issues standards in the nature of guidelines.
 The NBSA is empowered to warn, admonish, censure, express disapproval and fine the broadcaster a sum upto Rs. 1 lakh for violation of the Code.
 If something goes wrong, the Government also may step in and punish the channels e.g. by taking them off
the air for a day or so.

Problem with current regulatory regime
 Media regulation in India is not unified, and has a
multiplicity of bodies.
 Regulatory bodies like NBSA, ASCI lack force of law thus
are not very effective.
 There is no regulatory body for social media.

Way Forward
 Pre-censorship as denied by the Supreme Court in the
present case is correct, but at the same time, self-
regulation has largely been ineffective.
 In this context, following suggestions by the Supreme Court
and Parliamentary Committees can be feasible options:
 The Supreme Court in (Secretary, Ministry of
Information and Broadcasting v. Cricket Association
of Bengal) case suggested for creation of an
independent broadcasting media authority along the
lines of TRAI.
 In May 2013, the Parliamentary Standing Committee on Information Technology (2012-2013) recommended that either there be a statutory body to look into content from both print and electronic media or that the PCI be revamped with real powers to penalize for violation of its code.
 The media plays a vital role in democracy. So, there is a need to balance its independence and provide an effective mechanism to regulate media at the same time.

Box–Existing Mechanism to Regulate Other Forms of Media
Press Council of India: It is a statutory body to regulate newspapers, journals, magazines and other forms of print media but it cannot penalize them for violation of its guidelines.
Central Board of Film Certification: For controlling content of movies and television shows etc.
Radio channels have to follow the same Programme and Advertisement Code as followed by All India Radio.
Program and Advertisement Codes for regulating content broadcast on the television, are issued under the Cable Television Networks (Regulation) Act, 1995.
The Advertising Standards Council of India (ASCI) has also drawn up guidelines on content of advertisements.

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5
Q

1.5. SUPREME COURT ON ORDINANCES

A

Why in news?
 The Bihar Government had re-promulgated a 1989 ordinance for seven successive times by which it took over 429 Sanskrit schools in Bihar without even once tabling it in the State Assembly.
 Also recently, a seven-judge Constitution Bench of the Supreme Court in Krishna Kumar Singh vs. State of Bihar has held that the failure to place an ordinance before the legislature constitutes abuse of power and a fraud on the Constitution.

What does the Constitution Say?
 Article 123 and Article 213 confers power to promulgate ordinance on the President and the Governor respectively.
 Under the Constitution, an Ordinance can be promulgated only when
 Legislature or either house of legislature is not in session.
 Circumstances exists which require immediate action.
 The Supreme Court had already declared in 1986, in D.C. Wadhwa case, that repeated re-promulgation of ordinances was unconstitutional.

Why frequent resorting to Ordinance Route?
 Reluctance to face the legislature on particular issues.
 Lack of majority in the Upper House.
 Repeated and willful disruption by opposition parties.

Implication of the Judgment
 The court can go into whether the President or Governor had any material to arrive at the satisfaction that an ordinance was necessary
 The Court can examine whether there was any oblique motive, thus extending power of judicial review
 It makes mandatory for an ordinance to be tabled in the legislature for its approval

Way Forward
The Constitution has provided for Separation of Power where enacting laws is the function of the legislature. The executive must show self-restraint and should use ordinance making power only as per the spirit of the Constitution and not to evade legislative scrutiny and debates

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6
Q

1.6. NAGALAND WOMEN DEMAND ULB RESERVATION

A

Why in News?
 Nagaland women are demanding 33% constitutional
reservation for Urban Local Bodies (ULBs) in Nagaland.
Issues involved
 There appears to be a conflict between Article 243T
(reservation of seats for women) and Article 371A of
the Constitution.
 Nagaland’s urban areas are facing a lack of governance
in provision of basic services because of its refusal to
hold elections to ULBs since 2011.
 There is a conflict between women demanding
political representation and the customary law which
allows only the men to run the institutions of
governance.

Background
 74th constitutional amendment (CA) was passed in
1993, providing reservation for women in ULBs.
 Nagaland adopted this provision by Nagaland Municipal (First Amendment) Act of 2006.
 Nagaland has not witnessed any ULB election since 2011 due to the conflict between 74th CA and Article 371A principles.
 In April 2016, the Supreme Court (SC) ordered the state government to hold municipal elections.
 Nagaland has a high female literacy rate of 76.11%. Yet, there has only ever been one Naga woman elected to the Parliament.

Arguments given in support of women reservation
 Joint Action Committee on Women reservation contends that denying reservation to women in ULBs is a Constitutional violation.
 Tribals have no objection to 25% women reservation in village development boards as per Nagaland Village and Area Council Act, 1978. Hence, the opposition to women’s election to ULBs is illogical.
 Male dominance in the governing institutions may create a vacuum in gender specific policies.
 It impedes women’s socio-economic empowerment though political representation.

Arguments given against women reservation
 Naga Hoho, a body of 16 tribal groups, say that women representation in ULBs is against their customary law.
 They argue that they are not against women’s representation in these bodies but they are against women standing for elections. They prefer to nominate women rather than have them stand for elections.

Steps taken by the government
 Nagaland government has agreed to hold ULB elections with 33% reservation for women.
 Centre is working to mandate 50% reservation for women in all the ULBs to promote development of ‘engendered cities’.

What needs to be done?
 Proposal of 50% reservation to women should be finalized soon and implemented thoroughly.
 Reform customary law to make it gender neutral.
 Political parties or various local councils should themselves set ‘voluntary quotas’ for fielding women candidates in elections

Box–1-Provisions of 74th amendment related to women reservation
Article 243T (3) - Not less than 33% of the total seats by rotation are reserved for women in direct municipal elections.
Article 243T (4) – Reservation of women for offices of Chairperson of municipalities would be decided by law by the State Legislative Assembly.

Box–2-What is Article 371A (1)? No Act of Parliament in respect of
Religious or social practices of the Nagas,
Naga customary law and procedure,
Administration of civil and criminal justice involving decisions according to Naga customary law.
Ownership and transfer of land and its resources.
Shall apply to the Nagaland unless it’s Legislative Assembly by a resolution so decides

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7
Q

1.7. DRAFT INDIAN MEDICAL COUNCIL BILL 2016

A

Why in News?
 Ministry of Health and family welfare introduced Indian
Medical Council (Amendment) Bill to amend the IMC Act 1956.
 The provisions of the Bill are based on reforms suggested by
Arvind Panagariya committee to address concerns over quality
of medical education.

Provisions of the Bill
 A uniform exit test (National Exit Test or NEXT) to be
conducted for all medical educational institutions at
undergraduate (UG) level.
 NEXT would help MBBS graduates to qualify for medical practice or for a Post graduate (PG) course.
 Introduce admission counseling to medical educational institutions at the UG and PG level.
 Government Medical Officers, who served at least 3 years in remote and difficult areas, would get up to 50% reservation by the States/UTs in PG courses of Government Colleges.
 After the PG Degree, the Medical Officers can be mandated to serve for 3 years in remote or difficult areas by the States/UTs concerned.
 MCI will frame regulations on manner of conduct of NEXT and authority to conduct it.

Significance of the Bill
 It is aimed to provide a level-playing field to both government and private college students.
 It increases transparency in the license permissions for medical practices.
 It will add to the quality of the medical skilled workforce in India.

Criticisms
 Medical Institutions already have a continuous evaluation process in their MBBS programme. NEXT exam may make the university exams redundant.
 A tedious process may discourage meritorious students to take up medical courses.
 Draft does not clarify on what happens if an MBBS student fails NEXT.
 Up to 50% reservation compels students to pursue PG courses abroad.
 Along with the 50 per cent constitutional reservations at the UG and PG level, an additional 50 per cent reservation leaves about 25 per cent chance for open category students.
 With MBBS course and the provisions of the Bill, it may take a doctor about 13 years to complete his/her education. This will discourage students from taking up medical education.

Recommendations
 Bill should allow students to take NEXT multiple times for admission to post-graduate courses.
 Detailed provisions about the NEXT’s structure, process etc. should be included in the Bill.
 The reservation provision should be re-considered on the basis of ideals of equality and merit.

Way Forward
 Government should focus on reforming the medical education in the country without sacrificing the merit criteria. The suggestions of the doctoral community and the students should become the guiding light for the government to finalize the Bill.

Box–Indian Medical Council Act 1956
The Act provides for the constitution of the Medical Council of India (MCI).
The MCI regulates -
Standards of medical education,
Permission to start colleges, courses or increase the number of seat.
Registration of doctors.
Standards of professional conduct of medical practitioners.

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8
Q

1.8. INDIAN SKILL DEVELOPMENT SERVICE

A

Why in News?
 Ministry of Skill Development and Entrepreneurship (MSDE)
has issued a notification to set up Indian Skill Development
Services (ISDS).

Need of the Service
 Skill India Mission has the aim to raise a 500 million skilled
workforce by 2022. A unit of skilled administrators under ISDS
would promote this goal.
 ISDS will ensure more government control in a sector that was largely private-led till 2014.
 India has the largest youth population and one of the lowest skill proficiency. This move will tackle both – tapping our demographic dividend and improving skills in the workforce.

Features of the Service
 ISDS will be a Group ‘A’ service where induction will take place through Indian Engineering Service Examination conducted by UPSC.
 ISDS will have 263 all India posts.
 National Institute of Skill Development will train the administrators under ISDS.

Significance
 It is an attempt to attract young and talented administrators for Skill Development.
 It will give new impetus to the skill development ecosystem of government like Skill India.
 It will help in efficient and effective implementation of the schemes.
 It will create a dedicated workforce of trained skill administrators to promote the goal of increasing skilled youths.
 It will promote better competitiveness of the Indian manpower as compared to other countries.
 A dedicated cadre of skilled administrators will help specialize the generalist bureaucracy in the MSDE. This will promote better planning, better implementation and better targeting of the future schemes.

Box–Background
Cabinet approved the creation of ISDS in 2015 for the Training Directorate of MSDE.
With the current notification it will now become a formal service.
The training directorate implements schemes like Craftsmen Training Scheme, Apprenticeship Training Scheme etc.

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9
Q

1.9. TRAI CONSULTATION PAPER ON NET NEUTRALITY

A

Why in News?
 Telecom Regulatory Authority of India (TRAI) released a
consultation paper on Net neutrality (NN) for comments.

Background
 A.K. Bhargava Committee on Net Neutrality was setup by DoT
in 2015
 In 2016, TRAI released a pre-consultation paper on Net
neutrality.

Issues Involved
 There are concerns relating to discriminatory treatment of Internet traffic by access providers.
 At present there is no single standard accepted definition of NN.
 Unclear regulatory structure on NN - In India, issues of licensing and spectrum allocation are dealt by DoT while regulatory aspects are dealt by TRAI.
 There is a need for preserving customer privacy and national security along with regulating NN.

Provisions of the paper related to Net Neutrality
 On Internet Traffic Management Practices (TMPs) -
o It recognizes a need for a balance between non- discriminatory TMP by the service providers (SPs) and independence to manage traffic to them.
o It recommends two policyapproaches to manage
Internet traffic:
 Broad approach -Defining what wouldconstitute “reasonable”TMPs.
 Narrow approach -Define a negative list of
non-reasonable TMPs.
o It also recognizes certain exceptions needed for
prioritizing emergency services.
Eg. Government Notified content.
o It also examines whether certain services like Internet of Things (IOT), Virtual Private Network (VPN) etc. should be treated under the scope of TMPs or not.

 On Core principles of Net Neutrality –
o It examines whether specific practices like preferential
treatment of content be dealt under the NN framework.
o It recommends following aspects to define NN’s core
principles –
 User Rights – Nondiscriminatory access to internet and
Fundamental Right to expression.
 Content – Right to create content and access it without restrictions
 Devices – Freedom to connect non-harmful devices to the network.
 Harmful practices – Practices like blocking, throttling (traffic manipulation) and paid prioritizing may not be permitted.
 On the need of transparency with consumers related to the type of TMP used by the Service provider.
o It wants disclosures of pricing Information, performance characteristics, specialized services etc. by the SPs.
o On the way of disclosures, two approaches are recommended:
 Direct approach – Disclosures directly to the consumers
 Indirect approach – Disclosures to third parties like regulators linking the end users.
 On Regulatory approach and monitoring mechanism needed:
o The paper analyzes the present approaches that are being used to regulate NN:
 Cautious Observation – No specific measure to address NN
 Tentative Refinement – A light handed approach where the countries refine their existing regulatory regime on communication services and do not prohibit certain behaviours.
 Active reforms – Passing legislations, guidelines and regulations to regulate NN. Eg TRAI’s Prohibition of Discriminatory Tariffs for Data Services Regulations 2016
o The paper suggests various options for the regulation of NN –
 Wait and Watch approach as being done by many countries.
 Self-regulation through the formation of voluntary mechanism.
 Responsibility to regulate lies with the TRAI and government agencies or a participatory model with various stakeholders.

Significance of the paper
 The users are free to give their opinions to the paper. Hence, it is a participatory approach in policy making.
 It is a step towards promoting equality among consumers.

Challenges
 Crony capitalism may undermine the concepts of NN.
 A great amount of political will is needed to finalize the intricate aspects of NN.
 Independence of regulation by TRAI without any interference is a sin qua non for having NN.

Way Forward
 TRAI’s consultation paper is a welcome step towards deciding the NN framework in India. The success of the paper will depend on the future planning and implementation framework set by the government.

Box–1-TRAI
It is a statutory body under TRAI Act 1997.
It regulates telecom services, including fixation of tariffs for telecom services.
It provides a fair and transparent policy that facilitates fair competition.
TRAI Act was amended in 2000 to establish a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to hear appeals on disputes over TRAI’s decisions.

Box–2-Net Neutrality
It was first coined by Tim Wu.
It means to treat all content, sites and platforms equally on a public information network. It is an important part of a free and open internet. It enables access, choice and transparency of Internet to every user.

–Fig–

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10
Q

1.10. ODISHA REJECTS PANEL ON MAHANADI RIVER DISPUTE

A

Why in news?
Odisha government has rejected the Centre’s negotiation committee on Mahanadi river water dispute with Chhattisgarh and instead demanded constitution of a Tribunal for adjudication.

River dispute
 The 858 km long Mahanadi River is almost equally divided between Chhattisgarh (53.9 per cent) and Odisha (45.73 per cent).
 River Mahanadi, with Hirakud dam on it, is lifeline of Odisha state and critical for development of the region
 Dispute is majorly about six water storage structures/ barrages, being constructed by Chhattisgarh government, on Mahanadi River. These barrages might leave insufficient water to the Hirakud dam.

Way forward
 Water being lifeline to mankind, thus Interstate water disputes need to be resolved timely.
 Firstly negotiation with concerned states by central government must be held, demanding time bound outcome.
 Central government should constitute a permanent tribunal to decide on all inter-state water disputes that arise.
 Mahanadi river management board should be constituted which would work independently and impartially of political parties and manage, divide water resources objectively.
 Political parties must treat water as a national issue and make consensus among each other.
 Water scarcity is increasing with time thus efficient usage and harvesting of water needs to be given importance.

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11
Q

1.11. NON-PROFIT ORGANISATIONS IN INDIA

A

Why in news?
 According to a CBI report submitted at Supreme Court there are more than 31 lakh NGOs existing in India,
while only 8% - 10% of those file annual financial statement.
 Supreme Court demanded a clear data bank about existing
NGOs. There is a need to provide institutional and legal
framework to NGOs.

What is the exact number of NPOs in India?
 CSO’s 2012 reports say that more than 31 lakh societies were
registered in the country by 2010. These were NPOs
registered under the Society Registration Act, 1860; data as
available in states and districts.
 Data from income tax authorities suggest that only 1.31 lakh NPOs are registered under Section 12A and are filing annual returns in the country.
 There is no way to determine how many NPOs exist. But estimates put the number at 250 lakh entities.

Framework and Accountability
 A comprehensive, clear legal and institutional framework for NPOs is demanded since 1985; various efforts have been made by planning commission to formulate a policy document for NPOs.
 The Second Administrative Reforms Commission (ARC) termed these as “Social Capital: A Shared Destiny.” It argued that such organizations are valuable for society but institutional and legal framework is needed.
 Recent governments have focused only on implementation of changes in the Foreign Contribution (Regulation) Act (FCRA), to regulate foreign funding of NGOs.

Way forward
 Development requires economic development with inclusivity, gender equality and improvement in quality of life. It is not possible for government alone to effectively undertake such task. This paves the role of NGOs.
 Systemic reform of the institutional and legal framework for NPOs is long overdue, but its absence does not imply that the societal, developmental and professional contributions of NPOs should be devalued.

Box--Legal recognition of NPOs
The Indian context, a non-profit entity can be incorporated under:
The Societies Registration Act, 1860
The Indian Trusts Act, 1882
The Co-operative Societies Act, 1904
The Trade Union Act, 1926
Section 8 of Indian Companies Act, 2013
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12
Q

Jan-17Polity

A
    1. Public Accounts Committee
    1. Section-19 of Prevention of Corruption Act
    1. Section 123(3) of Represenation of People Act,1951
    1. Pre-Censorship to Regulate Media
    1. Supreme Court on Ordinances
    1. Nagaland Women Demand ULB Reservation
    1. Draft Indian Medical Council Bill 2016
    1. Indian Skill Development Service
    1. TRAI Consultation Paper on Net Neutrality
    1. Odisha Rejects Panel on Mahanadi River Dispute
    1. Non-Profit Organisations in India
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