Q. Consider the following statements:
1.Under the Prevention of Money Laundering Act (PMLA), political parties are defined as companies.
2.In a parliamentary democracy, the cabinet, led by the Prime Minister or Chief Minister, is the ultimate authority on policy-making.
3.The judiciary does not evaluate the correctness or motives behind a policy made by the cabinet.
Which of the statement(s) given above is/are correct?
Answer: C
Notes:
Explanation –
Statement 1 is incorrect. Political parties are not defined as companies under the PMLA. However, the PMLA can apply to political parties under certain conditions, as they can be considered an “association of individuals” under Section 70, which deals with offenses by companies.
Statements 2 and 3 are correct. In a parliamentary democracy, the cabinet, headed by the Prime Minister or Chief Minister, is the highest decision-making body responsible for policy-making. The judiciary does not assess the correctness or motives of policies made by the cabinet, as policy decisions are considered the prerogative of the executive branch.
Source: The Hindu
