9 PM UPSC Current Affairs Articles 13 April, 2024
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Mains Oriented Articles
GS PAPER - 2
ASER 2023 Report for better education
Source-This post on ASER 2023 Report for better education has been created based on the article “Data for better education, a brighter future for students” published in “The Hindu” on 13 April 2024.
UPSC Syllabus-GS Paper-2- Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources.
Context – The Annual Status of Education Report (ASER) 2023 was released in mid-January this year. It has highlighted the foundational skill of 14–18-year-old students.
What are the findings of the ASER 2023?
1) Reading abilities – The ASER 2023 Beyond Basics survey was carried out in 28 rural districts across 26 States of the country. The report highlighted that overall, 26% of 14–18-year-olds cannot read a standard two-level text in their regional language.
2) School Enrollment-As per the findings of the report,57% of the 14–18-year-olds surveyed students, who do not have basic reading skills are enrolled in standard 10 or below. 28% of these children are not enrolled in school, college or a vocational institution.
3) Fluency and comprehension-Of the children in standard eight who could not read standard two level text fluently in 2022, almost half could read a standard one level text (i.e., a simple paragraph). Recognizing letters or decoding simple words is not the major challenge most face.
4) Access to reading material-ASER 2022, and later the State of Elementary Education in Rural India Report highlighted that only a small fraction of rural households has reading materials, other than school textbooks.
5) Aspiration of students – The ASER team conducted focus group discussions with children of the 14-18 years old in 3 districts. More than 60% of the surveyed children want to obtain at least a college education, with a higher percentage of girls aspiring for a college education (65%) when compared to boys (59%).
6) Vocational Education- In some places vocational education was looked down upon and perceived to be a last resort for those who couldn’t get white-collar jobs whereas in places like Solan in Himachal, it was taken with great enthusiasm due to introduction of relevant e vocational programs like tourism and hotel.
What is the reason behind such poor performance of students?
1) Lack of foundational skills in the primary grades- As per ASER 2018 report, around 32% of standard seven and 27% of standard eight children could not read a standard two-level text. Thus, it becomes extremely difficult for the children to acquire foundational skills in later grades if they have not acquired it in their primary grades.
2) Facing embarrassment-In 2022, nearly half of the kids in eighth grade who couldn’t read at a second-grade level could read at a first-grade level. Recognizing letters or decoding simple words is not the major challenge most face.However,they are often ridiculed and therefore, many of these children start to hate reading.
3) Lack of connections– As per ASER, almost half of the surveyed 14–18-year-oldss who aspire to become a doctor or join the police department, do not have access to anyone working in that profession.
Read more- On India’s Public Education System
What should be the way forward?
1) Ending the shame-There is a need for guidance, practice, and lots of encouragement and motivation to children who are not able to read properly.They must not be ridiculed by anyone.
2) Community libraries– They can create rich and vibrant spaces that can foster reading, creativity and critical thinking. They need to be managed effectively to rekindle an interest in reading.
3) Leveraging Technology-There is a need to leverage digital technology to equip youth with the foundations of their aspired professions and bridge connections with relevant professionals. For ex-A student who wants to become nurse can undertake online foundational courses on nursing and related subjects.
4) Utilizing data– Data provided by various surveys can provide crucial pointers for action. It can help in policy formulation and suggesting corrective actions.
Question for practice
What are the findings of the ASER 2023? How can these finding help in taking corrective actions?
GS PAPER - 3
Potential impacts of AI: The future of work in the Al era
Source: The post potential impacts of AI has been created, based on the article “The future of work in the Al era” published in “Business standard” on 13th April 2024.
UPSC Syllabus Topic: GS Paper 3 – science and technology – developments and their applications and effects in everyday life
News: The article discusses how artificial intelligence (AI) might lead to job losses across all sectors, increasing productivity but potentially making human labor less valuable. It explores scenarios where AI could either lead to great wealth disparity or universal basic income, enhancing overall welfare.
For details information on artificial intelligence (AI) read here
How might society respond to increased wealth from AI?
There are two main predictions:
Apocalyptic Scenario: In this prediction, AI leads to a significant loss of jobs across various sectors, concentrating wealth in the hands of a few. The resulting inequality could deepen, with most of the wealth and productive surpluses being controlled by a small capital-owning class.
Utopian Scenario: Conversely, the same increase in productivity from AI could result in the wealthy being compelled to share their fortunes. This could be through mechanisms like a universal basic income, ensuring that everyone benefits from the AI-driven economic gains and possibly realizing a Marxist vision of society where all enjoy wealth and freedom.
What are the potential impacts of AI?
Job Displacement Across Sectors: AI could replace a wide range of jobs, from low-wage positions like truck drivers and cashiers to high-paying roles such as doctors, software programmers, and airline pilots. This broad impact highlights the extensive reach of AI in the job market.
Increased Productivity and Economic Inequality: AI may boost overall productivity but could also concentrate wealth significantly. In one scenario, a small, capital-owning class might monopolize these gains, exacerbating inequality.
Psychological and Social Effects: As AI potentially eliminates the need for human labor, people might struggle with the loss of purpose and identity that work provides. This could lead to increased rates of depression, anxiety, and other mental health issues, as well as social consequences like substance abuse and higher suicide rates.
Challenge of Redistribution: In a more optimistic scenario, the massive wealth generated by AI could be redistributed through mechanisms like universal basic income, suggesting a potential solution to the disparities created by AI-driven productivity.
What should be done?
Taxing AI: Imposing higher taxes on AI profits to fund social welfare programs, although this might not be sufficient to counteract the job losses.
Government Intervention: Using government resources to ensure AI complements human labor, as suggested by economist David Autor, but this might delay the inevitable rather than solve the problem.
Question for practice:
Discuss the potential impacts of artificial intelligence on societal wealth distribution and the proposed solutions to address resulting challenges.
Concerns related to India’s interest rates: Last-mile transmission a big hurdle to policy rate cut
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Source: The post concerns related to India’s interest rates has been created, based on the article “Last-mile transmission a big hurdle to policy rate cut” published in “Live mints” on 13th April 2024.
UPSC Syllabus Topic: GS Paper 3- Indian economy – mobilisation of resources
News: The article discusses why India’s central bank, the RBI, hasn’t reduced its main interest rate. Despite the RBI increasing this rate before, banks haven’t fully passed these increases to borrowers. This incomplete adjustment is one reason the RBI is cautious about changing rates now. Concerns related to India’s interest rates
For details information on marginal cost of funds-based lending rate read Article 1, Article 2
Question for practice:
Discuss the reasons behind the slow adjustment of Marginal Cost of Funds-based Lending Rate (MCLR) in India.
Frequently Asked Questions(FAQ)
What are the major concerns related to India’s interest rates?
Incomplete Transmission: Despite the RBI increasing the repo rate by 250 basis points, banks have only raised the weighted average lending rate on fresh loans by 185 basis points, indicating incomplete transmission.
EBLR vs. MCLR: Loans tied to the External Benchmark-based Lending Rate (EBLR) quickly adjust with the repo rate, while those tied to the Marginal Cost of Funds-based Lending Rate (MCLR) lag behind. For instance, between May 2022 and March 2024, the median one-year MCLR only rose by 155 basis points, compared to a 250 basis point increase in the repo rate.
What are the reasons for Slow MCLR Adjustment?
Complex Pricing Mechanism: MCLR-based loans factor in the bank’s cost of deposits and other margins, making rate adjustments more complex and slower than EBLR-linked loans.
Competition Concerns: Banks are cautious in raising MCLR rates due to fears of losing loan accounts to competitors, affecting their market share. This hesitance impacts the rate adjustment pace.
Selective Deposit Rate Increases: Banks have raised rates mainly for short-term deposits, affecting the cost basis for MCLR and subsequently delaying the transmission to MCLR-linked loan rates.
What is the RBI’s View on the Transmission of Rate Changes?
Ongoing Transmission: The RBI acknowledges that the transmission of rate changes to lending rates is still in progress, indicating a gradual process.
Goal of Fuller Transmission: The central bank is committed to ensuring a fuller transmission of policy actions, highlighting its efforts to make interest rate changes effectively impact lending rates.
Anchoring Expectations: The aim of anchoring household inflation expectations through effective rate transmission is indeed a part of the RBI’s strategy, as outlined by the Deputy Governor.
Current state of global coal power – problem with coal
Source: The post current state of global coal power has been created, based on the article “Express View: Problem with coal” published in “Indian express” on 13th April 2024.
UPSC Syllabus Topic: GS Paper 3-Environment – Conservation, environmental pollution and degradation
For details information on Coal-based Power Generation read here
News: The article discusses the global challenge of reducing coal use in power plants to fight climate change. It highlights the increasing number of coal plants in China and India and the slow decommissioning of such plants in the U.S., which is hindering efforts to meet climate goals.
What is the current state of global coal power?
Global Coal Power Increase: Global coal-fired power capacity grew by 2% last year, marking the highest annual increase since 2016.
China’s Commitment and Progress: China has pledged to retire 30 GW by 2025 but added two-thirds of the world’s new coal plants in the past year, significantly boosting its capacity.
US Deceleration: The U.S. decommissioned only 9.7 GW of coal power in 2023, down from 14.7 GW the previous year. The US Energy Information Administration estimates a 10 per cent reduction in coal use by 2025.
Retirement Goals: To phase out current coal capacity by 2040, the world needs to retire an average of 126GW of coal power plants annually for the next 17 years. However, only a sixth of this target was achieved last year.
What are the challenges in transitioning to green energy?
Economic Constraints: Emerging economies like India face the challenge of balancing coal phase-out with poverty alleviation and employment, as the coal sector is a major employer.
Insufficient Decommissioning: Globally, coal power decommissioning is not keeping pace with targets, with only a fraction of the necessary 126 GW retired annually.
Technological and Financial Barriers: The adoption of carbon capture technologies is limited due to high costs. Financial support from developmental finance institutions is crucial but currently inadequate.
Mismatched Growth: The expansion of renewable energy does not yet match the rising electricity demand in many countries, hindering the transition to greener alternatives.
Way forward
To advance the green transition, increased investment in renewable energies is necessary. Financial institutions must support technologies like carbon capture. Policies should encourage the decommissioning of coal plants to meet the global target of 126 GW annually and align with the Paris Climate Pact goals.
Question for practice:
Explain how the slow pace of decommissioning coal power plants impacts the ability to meet global climate targets.
Solutions for job creation: India’s missing jobs
Source: The post solutions for job creation has been created, based on the article “India’s missing jobs — and where the next government can find them” published in “Indian express” on 13th April 2024.
UPSC Syllabus Topic: GS Paper 3 – Indian Economy – Issues related to Growth and employment
News: The article discusses India’s job creation challenges. It mentions Meta opening a data center in India but highlights that India needs many more jobs. It critiques India’s reliance on services for economic growth and suggests diversifying into high-tech, startups, green energy, and manufacturing to create jobs.
For details information on Employment status in India Article1, Article2,
What is the current job situation in India?
Low Employment Rate: Only 46.6% of India’s working-age population is currently employed, which is significantly lower than the approximately 70% seen in other emerging markets.
Job Creation Needs: India needs to create 90 million new non-farm jobs by 2030 to keep pace with its growing working-age population.
Service Sector Focus: The Indian economy has heavily focused on service industries, employing 5.4 million in IT and back-office roles, but faces challenges such as automation reducing job opportunities.
What challenges are the service sectors facing?
IT Sector Decline: For the first time in 25 years, the IT sector, a cornerstone of India’s service economy, has experienced shrinkage, influenced by increasing automation and artificial intelligence.
Low Wages and Migration: Many workers in low-skilled service jobs earn so little that they preferred staying in their villages after the COVID-19 lockdowns, rather than returning to urban jobs.
Skill Gap: There’s a significant skill shortage in the country, with the 2023 India Skills Report indicating that only half of young Indians are employable, which limits their ability to participate in more advanced, skill-intensive service roles.
What are the proposed solutions for job creation?
Global Capability Centres (GCCs): Expansion of GCCs is suggested, with current employment at 1.6 million and expected growth to 4.5 million by 2030. These centers offer services ranging from finance and HR to tech innovation, helping India become a major exporter of services.
Tech Startups: Encouragement for tech startups to scale up, leveraging India’s capabilities in AI, SaaS, defense, and Greentech, which could lead to significant employment gains both directly and indirectly.
Green Energy: Focus on renewable energy with plans to install 500 gigawatts by 2030, aiming to create 50 million new jobs in the green economy.
Manufacturing Sector: Revitalizing the manufacturing sector is crucial, especially for small and medium enterprises that are less prone to automation and can employ more people. This effort should be supported by digital infrastructure to boost their competitive advantage.
Question for practice:
Discuss the challenges faced by India’s service sectors, and the proposed solutions for it.
Significance of making rules simple to boost export
Source-This post on Significance of making rules simple to boost export has been created based on the article “Policymakers must simplify trade rules to boost exports” published in “The Hindu” on 13 April 2024.
UPSC Syllabus-GS Paper-3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Context– The Asian Development Bank (ADB) increased its prediction for India’s GDP growth this fiscal year, ending on March 31, 2025, to 7% from the previous 6.7%. This is because of strong public and private investments and the expected recovery of consumer demand in rural areas.
What are the concerns expressed by The Asian Development Bank (ADB) report?
1) It’s prediction about India’s GDP might be proven wrong due to global risks like a sudden increase in oil prices or prolonged high interest rates in Western countries to control inflation. India could be particularly affected by these high interest rates because the rupee is sensitive to changes in Western interest rates.
2) There is a delay in the completion of projects by private sectors.
What are the limitations of report of The Asian Development Bank (ADB)?
1) It did not address the issue surrounding the integrity of India’s national income data or concerns raised about the heavy influence of government tax receipts on final GDP.
2) It did not highlight the absence of significant structural reforms in India, particularly since the COVID-19 pandemic.
Read more- Empowering MSMEs for export success
What should be the way forward?
1) The government should follow ADB’s suggestion to create large-scale special economic zones with an easier policy environment to boost exports.
2) In the backdrop of highly unstable situation in West Asia and disruptions to the usual shipping route through the Red Sea, India should need to quickly improve its integration with global supply chains and upgrade its logistics infrastructure.
Question for practice
Highlight the concern expressed by The Asian Development Bank (ADB) report regarding Indias GDP growth rate? What steps can be taken to address these concerns?
Issues related to animal rescue and capture
Source-This post on Issues related to animal rescue and capture has been created based on the article “The blurry lines between wildlife ‘capture’ and ‘rescue’” published in “The Hindu” on 12 April 2024.
UPSC Syllabus-GS Paper-3– Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment.
Context-The article highlights the significance of properly rescuing animals in the wake of escalating frequency of human-wildlife interactions.
Rescue can be defined as an act of saving or being saved from danger or difficulty. Rescue situations often involve leopards stuck in wells, elephants stranded in water tanks, snakes in homes, or lost elephant calves separated from their herds.
What are the problems with the animal capture and relocation approach to minimize human-wildlife conflict?
1) Complex Process-It is a complex process that requires chemical and physical immobilization of animals. Further, it needs a balanced team of experts, each with their specific role. However,domain experts are not easily available.
2) Violation of governments guidelines-Guidelines issued by the central government discourage the capture of leopards on mere sight. When leopards kill livestock or elephants damage crops, it affects communities, but it might not always justify capturing them under the pretext of rescue.
3) Physical damage– It can hurt them physically, cause injuries, and stress them out, making it harder for them to survive after release. For ex- an elephant taken from a coffee plantation was released 200 km away into unfamiliar territory. Later, it wandered into a neighboring state. Another attempt to rescue it ended with its death.
4) Disruption of ecosystems-Relocation of a wild animal disrupts two ecosystems, the one from where the animal is taken from, and the one to which that animal is introduced.
Read more- Need for new definition of elephant corridors
What should be the way forward?
1) Proper Evaluation-There should be a realistic assessment of the situation. This requires identifying the problem, limiting any factors that may cause stress to animals, ensure that other proactive measures have been exhausted before resorting to animal capture.
2) Karnataka Model– Proactive mitigation strategies to avoid human animal conflict should be promoted. This includes early warning systems, regular monitoring, fencing, better lighting, public education, and improved waste management to reduce, or better prepare communities for potential interactions with wildlife. This has been adopted by the Karnataka Forest department.
3) Integrating the welfare of animals and humans– The term “rescue” often suggests a conflict between species that is either animals are threatened by humans or humans feel threatened by wild animals. Trying to “rescue” in these situations can make one side look like the villain, harming trust in conservation efforts. Thus, there is a need to view communities as including both humans and animals, rather than creating divisions through wildlife management.
Question for practice
Highlight the problems with the animal capture and relocation approach to minimize human-wildlife conflict? What steps can be taken to reduce human-wildlife conflict?
Prelims Oriented Articles (Factly)
Prerana Program
Source-This post on Prerana Program is based on the article “Shri Sanjay Kumar addresses the First Alumni meet of the Prerana Program” published in “PIB” on 12th April 2024.
Why in the News?
Recently, the Secretary of the Department of School Education and Literacy (DoSEL) addressed the first alumni meeting of the Prerana Program.
About Prerana Program
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1. About: Prerana is an experiential and inspirational learning program for students with the best-in-class technology where heritage meets innovation.
2. Launched by: Department of School Education & Literacy, Ministry of Education, Government of India
3. Aim: To offer a meaningful, unique, and inspiring experience to all participants and empowering them with leadership qualities.
4. Salient Features of the programme:
a) It is a week-long residential program for selected students of class IX to XII.
b) PRERANA started in the pilot phase from January to February 2024 in the Vernacular school at Vadnagar, Mehsana, Gujarat. The 6th batch will start from 15th April 2024.
c) In this phase, the Prerana program has been held for five batches of 20 participants each from five states and one Union Territory.
d) Prerana combines experiential learning with cutting-edge technology, bridging traditional heritage with modern innovation.
e) The curriculum is built around nine core values: Dignity and Humility, Valor and Courage, Hard Work and Dedication, Compassion and Service, Diversity and Unity, Integrity and Purity, Innovation and Curiosity, Faith and Trust, and Freedom and Responsibility.
f) These themes aim to instill a deep respect for India’s diverse culture and promote the philosophy of “Vasudhaiva Kutumbakam” (the world is one family).
g) The day-wise program includes yoga, mindfulness, and meditation, alongside thematic experiential learning and engaging hands-on activities.
Evening activities will include visits to ancient and heritage sites, inspirational film screenings, mission life creative activities, talent shows etc. ensuring a holistic learning approach.
UPSC Syllabus: Schemes and Programs
Novel hydrogel removes microplastics from water
Source-This post on Novel hydrogel removes microplastics from water is based on the article “IISc researchers design novel hydrogel to remove microplastics from water” published in “The Hindu” on 12th April 2024.
Why in the News?
Researchers at the Indian Institute of Science (IISc) have developed a sustainable hydrogel specifically designed to tackle the menace of microplastics in water.
About hydrogel
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1) The hydrogel utilizes a complex interpenetrating polymer network (IPN) architecture composed of chitosan, polyvinyl alcohol, and polyaniline.
2) This structure is infused with nanoclusters of copper substitute polyoxometalate (Cu-POM), which act as catalysts under UV light irradiation to degrade microplastics.
3) The synergistic effect of the polymers intertwined with the catalytic nanoclusters enhances the hydrogel’s stability across various temperatures and also enables it to adsorb and degrade large quantities of microplastics efficiently.
4) This hydrogel efficiently removes about 95% and 93% of two different types of microplastics in water, highlighting its potential as a significant solution in water purification technologies.
5) The hydrogel could last for up to five cycles of microplastic removal without significant loss of efficacy.
6) This hydrogel can also be converted into carbon nanomaterials that are capable of extracting heavy metals, such as hexavalent chromium, from contaminated water.
About Microplastic
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1. Microplastics are small plastic particles in the environment that are generally smaller than 1 mm to the 1 micrometer range. Microplastics can be formed by fragmentation of large plastic waste material.
2. Danger of Microplastics to humanity and overall biodiversity:
a) Microplastics pass the filtration and treatment processes for wastewater resulting in significant global impacts on wildlife from marine environment pollution.
b) Microplastics kill biodiversity and other organisms’ fish before they reach reproductive age. It lead to stunted growth and behaviour change in some organisms.
c) Large amounts of plastic are not recycled and end up in landfills, posing a threat to human health.
d) The durable properties of plastics make them persistent and slow to degrade in the environment entering the food chains. It holds the potential for both bioaccumulation and biomagnification.
UPSC Syllabus: Science and technology, Environment
Manga disease
Source-This post on Manga disease has been created based on the article “Mange outbreak reported among Asiatic wild dogs in Mudumalai” published in “The Hindu” on 11 April 2024.
Why in the news?
The forest department is monitoring an outbreak of mange among a pack of Asiatic wild dogs in the Mudumalai Tiger Reserve (MTR) in the Nilgiris.
About Manga disease
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Aspects | Details |
Description | It is a skin disease of animals caused by mite infestations. |
Caused by | Sarcoptes scabiei mite, which also causes human scabies. |
Is it contagious? | 1. They are transmitted between animals by direct contact and by objects that have been in contact with infected animals. 2. Humans can contract certain types of mange from infected dogs and can temporarily infest human skin, leading to itching and discomfort. |
Symptoms | Inflammation, itching, thickening of the skin, and hair loss. |
Prevention | Prevention includes maintaining a clean environment, disinfect belongings, and avoid contact with infected or stray animals. |
Treatment | Treatment options aim to eliminate the mites, alleviate symptoms, and promote skin healing. Topical medications are commonly prescribed to target localized mange areas. |
About Asiatic Wild dogs
Aspects | Description |
About | 1) It is a is a member of the family Canidae and the class Mammalia. 2) Asiatic Wild dogs also known as Dhole (Cuon alpinus). |
Distribution |
1) It is an apex social carnivore in the tropical forests of South and Southeast Asia. 2) In India, Dholes are found in three clusters namely the Western and Eastern Ghats, central Indian landscape and North East India. 3) According to a 2020 study, Karnataka, Maharashtra and Madhya Pradesh rank high in conservation of dhole. |
Habitat | Dense jungles, steppes, mountains, scrub forests, and pine forests. |
Threat | Competition and disease transmission from domestic dogs are a threat to this species. |
Conservation status |
IUCN Status: Endangered CITES: Appendix II Wildlife Protection Act: Schedule II |
UPSC Syllabus: Science and technology (Health), Environment
World Cybercrime Index
Source- This post on the World Cybercrime Index has been created based on the article “India ranks number 10 in cybercrime, study finds” published in “Economic Times” on 11 April 2024.
Why in the news?
Recently, an international team of researchers has compiled the ‘World Cybercrime Index’.
About World Cybercrime Index
1. The ‘World Cybercrime Index’ identifies the globe’s key cybercrime hotspots by ranking the most significant sources of cybercrime at a national level.
2. The index was developed through a collaborative effort between the University of Oxford and UNSW Canberra.
3. It is based on data collected from a survey involving 92 top global experts in cybercrime, who specialize in intelligence and investigations related to cyber activities.
4. It ranks roughly 100 countries and identifies key hotspots according to various categories of cybercrime.
5. The five major categories of cybercrime assessed by the study were technical products/services, attacks and extortion, Data/identity theft, Scams, cashing out/money laundering.
6. Key findings from the World Cybercrime Index:
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a) Russia tops the list with the highest cybercriminal threat, followed by Ukraine, China, the USA, Nigeria, and Romania.
b) The United Kingdom (UK) ranks at number eight in terms of cybercrime threat.
c) India was ranked 10th in cybercrime, mostly involving scams that trick people into making advance payments.
d) The study indicated that certain types of cybercrime were linked to specific countries. For ex- the U.S.A was predominantly connected with data and identity theft crimes, whereas crimes involving technical products or services frequently traced back to China.
e) The study also found that countries that are cybercrime hubs “specialise” in particular categories. For ex- Russia and Ukraine are highly technical cybercrime hubs, whereas Nigerian cybercriminals are engaged in less technical forms of cybercrime.
f) The worldwide economic impact of cybercrime is projected to significantly increase over the next four years, escalating from $9.22 trillion in 2024 to $13.82 trillion by 2028.
Read more: Cyber attacks and Cyber Security in India
UPSC Syllabus: Index and reports
Adjudicating authority under PMLA
Source-This post on Adjudicating authority under PMLA has been created based on the article “What is the ‘Adjudicating Authority’ that has confirmed ED’s attachment of Rahul-Sonia-promoted company’s assets?” published in “The Indian Express” on 13 April 2024.
Why in the news?
The Adjudicating Authority under the PMLA recently confirmed that it has attached assets worth Rs 751.9 crore belonging to the National Herald newspaper. Adjudicating authority under PMLA
About Adjudicating authority under PMLA
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Mandate-Under the Prevention of Money Laundering Act (PMLA), adjudicating authority has to determine whether the properties seized by the Enforcement Directorate (ED) are linked to money laundering or not, within 180 days.
Role of the Adjudicating authority
1) Section 5 of the PMLA allows the seizure of any property that is suspected to be acquired by the proceeds of crime in a case of any offence that is listed in the schedule of the law.
2) The attachment order is issued when the ED Director suspects that the proceeds of crime may be concealed, moved, or used in a way that could disrupt confiscation proceedings.
2) Provisional attachment order– It is valid for a period of 180 days, within which the Adjudicating Authority must confirm the attachment. If within this time, the attachment is not confirmed, then the property is automatically released from attachment.
3) The accused can continue to use the property until the adjudicating authority approves the seizure. After, adjudicating authority’s approval, ED will take control of it.
What happens after the Adjudicating Authority confirms the attachment?
1) Right to appeal-The accused has the right to challenge the adjudicating authority’s confirmation order at the PMLA’s Appellate Tribunal within 45 days.
2)Appellate tribunal– If the Appellate Tribunal also confirms the order, the accused can file a plea in the High Court, and so on.
3) Status of property-Unless the property is released, the owner won’t have access to it as long as trial is not over.
4) Final confirmation– Once the confirmation is final, if it’s a residential property, the ED will ask the owner to leave with their belongings, and the ED will take over possession.
5) In case of conviction– If there’s a conviction, the trial court may order confiscation of the attached property and transfer ownership to the central government.
Read more-Enforcement Directorate: Significance and Criticisms
UPSC Syllabus-Bills and Acts