Day: September 13, 2017

Daily Current Affairs 13 – September – 2017

More than 1 lakh directors at shell firms identified for disqualification

Mains : GS 3 Money-laundering and its prevention

The Ministry of Corporate Affairs (MoCA) has identified 1.06 lakh directors of ‘shell companies’ for disqualification under the relevant provisions of the Companies Act, 2013.

Highlights

  • The decision by the ministry is part of actions to break the network of ‘shell companies’ and the fight against black money/money laundering activities.
  • Actions by professional institutes against professionals(Chartered Accountants, Company Secretaries, Cost Accountants) who helped the defaulting firms are being monitored.
  • The move is pursuant to the MoCA’s action of cancellation of registration of around 2.10 lakh defaulting companies and subsequent direction of the finance ministry to banks to restrict operations of bank accounts of such companies by the directors of such companies or their authorized representatives.
  • The MoCA said it is analysing the data of these companies available with the Registrar of Companies (RoC) to identify the Directors and the significant beneficial interests behind these companies.
  • Prior to action against defaulting companies, there were about 13 lakh companies in the Registry. However, after closing of around 2.1 lakh companies, there are about 11 lakh companies having ‘active’ status in the Registry.

What are shell companies?

A shell corporation is a corporation without active business operations or significant assets. These types of corporations are not all necessarily illegal, but they are sometimes used illegitimately, such as to disguise business ownership from law enforcement or the public.

The Issue with shell corporations

Shell corporations are used by large well-known public companies, shady business dealers and private individuals alike. For example shell corporations act as tax avoidance vehicles for legitimate businesses.

Something to think about

Money laundering poses a serious security threat to a country’s economic sovereignty. What is its significance for India and what steps are required to be taken to control this menace? [UPSC Mains 2013]

Sources: The Hindu Shell Corporation Definition | Investopedia

CAG appointment not transparent’

Topic : GS 2 Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.

  • The Narendra Modi government has followed the exact same opaque practice and procedures of the UPA government in the appointment of the new Comptroller and Auditor-General of India, says Common Cause.
  • The government appointed Rajiv Mehrishi, a 1978-batch IAS officer, as the CAG at August-end. He will take over from Shashi Kant Sharma by this month-end.

What Common cause has said?

The organisation pointed out that the criteria for selection of the CAG should include possession of the requisite professional knowledge and background, ability of an exceptional order and impeccable integrity which is essential for preserving the integrity and credibility of the institution of public audit.”

Comptroller and Auditor General of India (CAG)

  • The Constitution of India (Article 148) provides for an independent office of the Comptroller and Auditor General of India (CAG).
  • He is the guardian of the public purse and controls the entire financial system of the country at both the levels—the Centre and the state.

Powers and duties of CAG

The Constitution (Article 149) authorises the Parliament to prescribe the duties and powers of the CAG. Accordingly, the Parliament enacted the CAG’s (Duties, Powers and Conditions of Service) act. 1971.

The duties and functions of the CAG among other things laid down by the Parliament and the Constitution are:

    • Auditing the accounts related to all expenditure from the Consolidated Fund of India, Contingency Fund of India and the Public Account of India and that of the states
    • Auditing the receipts and expenditure of
    • All bodies and authorities substantially financed from the Central or state revenues;
    • Government companies
    • Other corporations and bodies, when so required by related laws.

Ponder about

Exercise of CAG’s powers in relation to the accounts of the Union and the states is derived from Article 149 of the Indian Constitution. Discuss whether audit of the Government’s policy implementation could amount to overstepping its own jurisdiction [UPSC Mains 2016]

Sources: The Hindu Indian Polity – M. Laxmikanth

A fragile ark that shelters 2,626 creatures

Topic : GS 3 Conservation, environmental pollution and degradation, environmental impact assessment

In a first, the Zoological Survey of India (ZSI) has published an compendium of animal species in the Indian Sundarbans, estimating that there are 2,626 of them in the fragile island ecosystem.

Key points

      • The listing includes a diverse 25 phyla, as they are biologically classified.
      • Due to pressure on habitat from people and natural threats that have shrunk the mangrove swamp habitat, mammal numbers are declining.

About the report

      • The publication titled Fauna of Sundarban Biosphere Reserve is the first consolidated and updated information of the faunal diversity of the Sundarbans.
      • It lists over 2,600 species, including the new species described from the mangrove ecosystem as well as threats faced by them due to climate change
      • Researchers document the famous tigers of these islands, which have adapted to aquatic conditions around, the human-tiger conflict, and behaviour of the big cat.

Sunderbans

      • The Sundarbans is a vast forest in the coastal region of the Bay of Bengal, considered one of the natural wonders of the world.
      • It was recognised in 1997 as a UNESCO World Heritage Site.
      • The Sundarbans is the worlds largest coastal mangrove forest, with an area of approximately 10,000 sq km; of which approximately 6,000 sq km is situated in Bangladesh and approximately 4,000 sq km in India.
      • The Bangladeshi and Indian parts of the Sundarbans, while in fact adjacent parts of the uninterrupted landmark, have been listed separately in the UNESCO World Heritage List: as “Sundarbans” and “Sundarban National Park” respectively.
      • The Sundarbans are a network of marine streams, mud shores and mangrove forests.

Sources : The Hindu wikipedia

Varsities can now seek ‘eminence’ status – Institutions of eminence.

Topic GS 3 Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

  • The University Grants Commission announced the beginning of a 90-day application process for universities — public and private — to seek the status of institutions of eminence.
  • The Cabinet had earlier cleared the UGC’s Institutions of Eminence Deemed to be Universities Regulations 2017

Objective of the scheme

  • It is aimed at creating an enabling architecture for 10 public and 10 private institutions to emerge as world-class institutions.
  • The scheme is to help institutions break into the top 500 global rankings in 10 years, and then break into the top 100 over time.

What does it imply?

  • The selected institutions will be given freedom to become world-class institutions.
  • The UGC and the AICTE — the apex higher education regulators — will lose their powers to regulate these institutions.
  • The 10 state-run institutions will be provided Rs. 10,000 crore over a period of 10 years, over and above the regular grants.
  • The institutions will be accorded the status of “Institutions of Eminence”
  • These institutions would have complete freedom to decide the curricula, hire domestic and foreign faculty at variable pay, and fix a fee structure of their choice.

Other details

The institutions which can apply are divided into three categories — existing government educational institutions, existing private higher educational institutions and sponsoring organisation for setting up of private institutions

Who are eligible to apply?

Institutions in the top 50 of the National Institute Ranking Framework rankings or those who have secured ranking among top 500 of the Times Higher Education World University Rankings, QS University Rankings or Shanghai Ranking Academic Ranking of World Universities are eligible to apply.

How the institutions are selected?

  • The Centre has firmed up the basic framework of the scheme.
  • An empowered expert committee (chosen by a high powered committee) comprising prominent scholars and eminent persons, will pick 20 institutions from among those that apply for the status.

Ponder about

Why India doesn’t have world class universities? Find reasons, give solutions

Sources: The Hindu The Hindu The Indian Express

Chakmas to be made citizens

Topic : GS 2 Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

The Union government is all set to give citizenship to over one lakh Chakma-Hajongs, Buddhists and Hindus who fled to India in the 1960s to escape religious persecution in the Chittagong Hill area of Bangladesh. The final decision to grant citizenship to the Chakma-Hajongs will be taken soon. The Chakma-Hajongs would be granted citizenship but will not have any land ownership rights in Arunachal Pradesh, a predominantly tribal State. They would be free to buy land anywhere else in India but not in Arunachal Pradesh The Arunachalis have opposed giving any rights to Chakma-Hajongs.

Sources : The Hindu

Major Cabinet decisions

  • Cabinet approves release of additional 1% Dearness Allowance to Central Government employees and Dearness Relief to pensioners w.e.f. 01.07.2017 The release of the additional instalment of DA represents an increase of 1% over the existing rate of 4% of the Basic Pay/Pension, to compensate for price rise.
  • Cabinet approves MoU between India and Morocco on cooperation in the field of health
  • Cabinet approves MoU between India and Armenia on Cooperation in the field of Disaster Management
  • Cabinet approves hiving off mobile tower assets of Bharat Sanchar Nigam Limited into a separate company, fully owned by BSNL. This approval authorizes BSNL to monetize its telecom tower infrastructure with the formation of a separate subsidiary company.
  • Cabinet approves introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament The Amendment will increase the maximum limit of gratuity of employees, in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.

Sources : pib

AYUSH Minister inaugurates India’s first advanced Homoeopathy Virology lab in Kolkata

The Union Minister of State for AYUSH (Independent Charge) Shri Shripad Yesso Naik inaugurated India’s first State of art virology laboratory at Dr. Anjali Chatterjee Regional Research Institute for Homoeopathy in Kolkata. The laboratory has been established to develop new drugs and technologies in Homoeopathy to combat emerging challenges of viral diseases.

Sources : pib

Nation-Wide Hackathon #OpenGovDataHack

Union Minister for Electronics & Information Technology Shri Ravi Shankar Prasad today launched a nation-wide hackathon #OpenGovDataHack. It aims to Support & Showcase potentially great Ideas/Talent from Inner India by reaching out in their own State/City (7 Cities). ·It is to enable them making their ideas developed into Apps/Infographics primarily by use of Open Government Data around the themes of Drinking Water& Sanitation, Transport, Education, Crime and Health to a stage, after which it can be evaluated by jury and be selected for Prizes and future support/funding. The Hackathon would be conducted by NIC and IAMAI as a part of the Startup Eco-system Development Programme

Sources : pib

Environment Minister launches “Wood is Good” Campaign

Topic : GS 3 Conservation, environmental pollution and degradation, environmental impact assessment.

  • Union Minister of Environment, Forest and Climate Change, Dr. Harsh Vardhan inagurated a two-day conference on “Sustainable landscapes and forest ecosystems: Theory to Practice” and launched the “Wood is Good” campaign.
  • The Partnership for Land Use Science (Forest-Plus) is a joint programme by the United States Agency for International Development (USAID) and Ministry of Environment, Forest and Climate Change (MoEF&CC) to strengthen capacity for REDD (Reducing Emissions from Deforestation and Forest Degradation) implementation in India.
  • The programme brings together experts from India and the United States to develop technologies, tools and methods of forest management to meet the technical challenges of managing forests for the health of ecosystem, carbon stocks, biodiversity and livelihood.

Sources : pib

Two U.S. scientists awarded Balzan Prize

  • Two U.S. scientists James Allison and Robert Schreiber whose work has contributed to creating immunological treatments for cancer are among the winners of this year’s Balzan Prizes.
  • Another winner is economist Bina Agarwal, who was recognised in the gender studies category for her “heroic” work studying women’s contributions to agriculture in India.
  • The Balzan Foundation awards two prizes in the sciences and two in the humanities each year, rotating specialities to highlight new or emerging areas of research and sustain fields that might be overlooked elsewhere. Recipients receive 750,000 Swiss francs (₹5 crore), half of which must be used for research, preferably by young scholars or scientists.

Sources : The Hindu