GS Analyst
Daily Current Affairs

The Supreme Court dismissing a petition had refused to interfere with the extension of service of the (ED) Enforcement Directorate Chief. And stated that the CVC Act, 2003 only said that such officers shall hold office for not less than two years which cannot be read to mean not more than two years.

So, let us see what is the confusion regarding the tenure of ED’s Chief.

The Enforcement Directorate:

• The Directorate of Enforcement (ED) is a multi-disciplinary organization mandated with the investigation of offenses of money laundering and violations of foreign exchange laws.
• It functions under the Department of Revenue of the Ministry of Finance.
• As a premier financial investigation agency of the Government of India. The Enforcement Directorate functions in strict compliance with the Constitution and Laws of India.

What is the Structure of ED?

• Headquarters: New Delhi
• Headed by: Director of Enforcement.
• There are five regional offices in Mumbai, Chennai, Chandigarh, Kolkata, and Delhi headed by Special Directors of Enforcement.
• The Directorate has 10 Zonal offices each of which is headed by a Deputy Director and 11 sub Zonal Offices each of which is headed by an Assistant Director.
• Recruitment: Recruitment of the officers is done directly and by drawing officers from other investigation agencies.
  • It comprises officers of the IRS (Indian Revenue Services), IPS (Indian Police Services), and IAS (Indian Administrative Services) such as Income Tax officers, Excise officers, Customs officers, and police.
• Tenure: In November 2021, the President of India promulgated two ordinances allowing the Centre to extend the tenures of the directors of the Central Bureau of Investigation (CBI) and the Enforcement Directorate from ‘two years to up to ‘five years.

What were the Amendments say regarding ED’s chief?

• The Delhi Special Police Establishment (DSPE) Act, 1946, and the Central Vigilance Commission (CVC) Act 2003have has been amended to give the Government the power to keep the ‘two chiefs’ in their posts for one year after they have completed their two-year terms.
• The chiefs of the Central agencies currently have fixed two-year tenure, but can now be given three annual extensions.
• However, no further extension can be granted after the completion of a period of five years. In total including the period mentioned in the initial appointment.

What are the statutory functions of ED?

• Foreign Exchange Management Act, 1999 (FEMA): It is a civil law enacted to consolidate and amend the laws relating to facilitating external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India.
  • ED has been given the responsibility to conduct an investigation into suspected contraventions of foreign exchange laws. And regulations and to adjudicate and impose penalties on those adjudged to have contravened the law.
• Prevention of Money Laundering Act, 2002 (PMLA): Following the recommendations of the Financial Action Task Force (FATF) India enacted PMLA.
  • The ED has been entrusted with the responsibility of executing the provisions of PMLA by conducting an investigation to trace the assets derived from proceeds of crime. To provisionally attach the property, and to ensure the prosecution of the offenders and confiscation of the property by the Special court.

Why is the ED being criticized?

The Supreme Court (SC) is examining allegations of rampant misuse of the Prevention of Money Laundering Act, 2002 (PMLA) by the government and the Enforcement Directorate (ED). 

Major Allegations include:

• Being Used for Ordinary Crimes: PMLA is pulled into the investigation of even “ordinary” crimes and assets of genuine victims have been attached.
• Lack of Transparency and Clarity: The EDtreats itself as an exception to the principles and practices [of criminal procedure law]. And chooses to register an ECIR on its own whims and fancies on its own file.
• ED cannot take action suo motu: The ED will investigate the matter and may attach the property of an accused person. And also make an arrest and start proceeding with the violation of the provisions of FEMA and PMLA act. The matter will be resolved by way of adjudication by courts or PMLA courts.

Recently, according to a British newspaper, a child labor warning has been issued by trade unions over the India-UK trade deal which got overlooked in India.

Child labour statistics for India:

• Every 1 in 10 child labourers worldwide is from India.
• Girls are the most affected.
• Child labour is most prevalent in five regions (census 2011)namely, Bihar, Uttar Pradesh, Rajasthan, Madhya Pradesh and Maharashtra.

What is Child Labour?

• Child labour refers to the employment of children in any work that deprives them of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially or morally dangerous and harmful.

Where are these child labourers deployed?

• Bonded labour, child soldiers, and trafficking.
• Industrial labour: In brick kilns, carpet weaving, garment making, domestic service, food and refreshment services (such as tea stalls), agriculture, fisheries and mining.
• Sexual exploitation
• Production of child pornography
  

What are the loopholes in the system functioning against Child Labour in India?

• Lack of Coordination between Centre and States
• Increasing instances of Child Trafficking
• The debate over the Age criteria for Child labour related crimes and delay in justice delivery
• Addressing loopholes in Poverty alleviation schemes and Increasing Population in India.
• Increasing Unemployment and Informal sector jobs.
• Lack of regulations in the informal sector as children is mostly employed in those sectors.

Policy interventions against Child labour in India:

• Child Labour Act (Prohibition and Regulation) 1986: It prohibits children under the age of 14 years to be working in hazardous industries and processes.
• Child Labour (Prohibition & Regulation) Amendment Act 2016: It prohibits the employment of children below 14 years in all employment and with the provisions for the prohibition on employment of adolescents (14-18 Years) in scheduled hazardous occupations and processes.
• The Child Labour (Prohibition & Regulation) Amendment Rules, 2017:The Rules provide a broad and specific framework for the prevention, prohibition, rescue and rehabilitation of child and adolescent workers. It also clarifies issues related to helping in family and family enterprises and the definition of family with respect to children, specific provisions have been incorporated into rules.
• Policy interventions such asMGNREGA 2005 and Right to Education Act 2009 and Mid-Day Meal Scheme have paved the way for children to be in schools along with guaranteed wage employment (unskilled) for rural families.

Why role of Panchayats becomes significant to eradicate child labour?

• Approximately 80% of child labourers in India have roots in rural areas. The panchayats can play a significant role in mitigating child labour.
• Role of panchayat members in mitigating child labour
• Generate awareness about the ill effects of child labour
• Encourage parents to send their children to school
• Create an environment where children stop working and get enrolled in schools instead
• Ensure that children have sufficient facilities available in schools
• Inform industry owners about the laws prohibiting child labour and the penalties for violating these laws
• Activate Balwadis and Aanganwadis in the village so that working mothers do not leave the responsibility of younger children to their older siblings
• Motivate Village Education Committees (VECs) to improve the conditions of schools

Suggestive measures:

• Survey of child labour: It is necessary that the government commissions research and surveys on different aspects of child labour in the country.
• New Policy for Child Labour: A lot of changes have been done since the child labour policy in 1986. But a further relook of all the laws and policies is urgently needed. Consistency in the constitutional and legal provisions pertaining to children’s rights is critical and required.
• National Child Labour Programme (NCLP): The current National Child Labour Programme (NCLP) needs to be revamped.

Social Mobilisation: Given that eradication of child labour is not an easy task, preventive strategies are more sustainable in the long run. The role of social mobilization and community participation is crucial.

India plans to showcase Nagaland’s famous Hornbill Festival when it assumes the G20 presidency on December 1.

The Hornbill Festival:

• The Hornbill Festival is celebrated in Nagaland to encourage inter-tribal interaction.
• It is one of the largest indigenous festivals organized by the State government of Nagaland to promote tourism in the state.
• The festival is celebrated annually in the first week of December in order to preserve, protect and revive the uniqueness and richness of the Naga heritage.
• The festival is considered the“Festival of Festivals” in Nagaland.
• The festival is named after the bird – Hornbill which is the most revered and admired bird for the Nagas.
  

Cultural Significance:

• The species Hornbill is closely identified with the social and cultural life of the Nagas, as reflected in various tribal dances, songs, and folklore.
• Hornbill festival exposes the culture and tradition of the tribal people and reinforces the identity of Nagaland.

Geo-Strategic Significance:

• The move to showcase the Hornbill Festival on a global scale is in the direction of not limiting G20 to major urban cities and using the opportunity to showcase India’s rich and diverse cultural landscape and to identify opportunities to showcase the country’s cultural heritage through G20 events.

About the Hornbill Species:

• They are a family of birds found in tropical and subtropical Africa, Asia, and Melanesia.
• They are characterized by a long, down-curved bill which is frequently brightly colored and sometimes has a casque on the upper mandible.
• They are the only birds in which the first and second neck vertebrae (the atlas and axis respectively) are fused together.
• The family is omnivorous, feeding on fruit and small animals.
• They are monogamous breeders nesting in natural cavities in trees and sometimes cliffs.
• Protection Status:
  • Threatened in India
  • Extinct in South Asia
    

The disjuncture between the growth of the corporate sector and declining businesses in the unorganized sector presents the stark reality which is engulfing India’s unorganized sector.

Difference Between Organized and unorganized Sector:

Some statistics

• Reserve Bank of India Data:
  • Sales of companies surged 41% and net profits increased by 24% over the last year.
  • The corporate sector surge far exceeds the growth of the economy.
  • If one component of the economy is rising so rapidly, the other part, the non-corporate sector in the industry, must be shrinking.
• Unorganized/Informal sector in India
  • Around 80% of India’s labor force is employed in the informal sector and the remaining 20% is in the formal sector.
  • Of the 80% informal sector workforce, half work in agriculture and the remaining in non-agricultural sectors.

Government Argument:

• Tax revenue has grown 52.3%: The tax collection has been robust, so the economy is doing well.
  • But we must understand that this does not reflect the unorganized sector where most incomes are below the taxable limits and which is exempt from the Goods and Services Tax.

The shift in demand to the organized sector:

• The growth of large companies is surging because the smaller units aren’t doing well. It is visible in sectors such as luggage manufacturing and the pressure cooker industry.
• The rapid expansion of e-commerce at the expense of neighborhood retail stores is one of the possibilities for this surge.

Does the entire unorganized sector is declining?

• The answer is no. But there are numerous issues:
• Some units are suppliers to the small and medium sector units which in turn are suppliers to the corporate sector.
• The growth of the corporate sector has benefited these units.
• But many times, these payments are delayed by the larger units.

What are the issues?

• Bearing the cost: The unorganized sector cannot cope with changes that increase its costs. On the contrary, the organized sector is already largely digitized and formalized.
  • It has gradually shifted the demand from unorganized and small units to larger ones, spurring their rapid growth.
• Colonization of the unorganized sector: Although the GST was designed to formalize the economy, in many cases, the market of the unorganized sector is being captured by the organized sector.
• Digitization and formalization: The government argues that Digitization and formalization can improve businesses.
  • curb tax evasion and more taxes will be collected
  • better services can be provided to the marginalized.
• Growing Divide: A Survey of incomes by PRICE released at the start of this year shows the growing divide between the top 20% and the bottom 60% in the income ladder.

• The unorganized sector isn’t prepared: The GST, digitization, and formalization are setting the rules of the gains in favor of the organized sector at the expense of the unorganized sector.
• Capturing the Markets: As the production of the unorganized sector declines, the produce of the organized sector finds new markets for its expansion.
• Data Availability: Unorganized sector is ignored in data; policies also ignore it even though it employs 94% of the workers and produces 45% of the output.

Need to be done:

• More inclusive Approach: Schemes like MUDRA loans and Start-up India are helping the youth carve a niche in the organized sector.
• Simpler regulatory framework: The transition of the informal sector to the formal sector can only occur when the informal sector is given relief from the burden of regulatory compliance and is given enough time to adjust to the modern, digitized formal system.
• Financial Support for Formalization: Giving financial support to help small-scale industries stand on their own is a crucial step in bringing them to the organized sector.

The Global Methane Assessment: 2030 Baseline Report which was launched at the Climate and Clean Air Ministerial Meeting at COP27, highlighted that Methane emissions are going to rise by 5-13% by 2030.

Key highlights of the Report:

• The report evaluated the baseline (a scenario of what would happen without efforts) such as the Global Methane Pledge.

• This also represents an estimated increase of 20-50 million tonnes of methane per year above current levels.
• Cutting methane emissions in the next decade should complement decarbonization efforts. This is mainly because removing carbon dioxide will also remove cooling aerosols.
• At CoP27, 150 nations joined the pledge, where India and China have not made the commitment yet.
• Around 95 percent of the Nationally Determined Contributions (NDC) now include methane or will include it in revised versions.
• Methane levels in the atmosphere in 2021 reached a record high of 1908 parts per billion. This is 262 percent of the preindustrial era levels, according to the World Meteorological Organization.
• Agriculture, fossil fuels as well as solid waste, and wastewater are the three major sources of methane.
• Human activities release 350-390 million tonnes of methane annually.
• Emissions from the agriculture and fossil fuel energy sectors are around 120-140 million tonnes per year, roughly twice that of the waste sector.
• Emissions are projected to rise by about 11 million tonnes annually by 2030 under a business-as-usual scenario from the agriculture sector.

Methane Alert and Response System (MARS):

• MARS is a part of global efforts to slow climate change by tackling global warming gas.
• It will use state-of-the-art satellite data to identify significant emission events, notify relevant stakeholders, and support and track mitigation progress.
• MARS will integrate data from the rapidly expanding system of methane-detecting satellites to include lower-emitting area sources and more frequent detection.
• Data on coal, waste, livestock, and rice will be added gradually to MARS to support the Global Methane Pledge
  
  

Steps were taken to Curb Methane Emissions:

• COP 26 Pledges: At COP26 in Glasgow, over 100 countries signed an agreement to cut methane emissions by 30% by 2030.
• The US President has announced the Global Methane Pledge, which is a US-EU-led effort to cut methane emissions by a third by the end of this decade.
• MethaneSAT: Controlling methane emissions will require further scrutiny of its sources. To this end, satellites that will track methane leakage such as MethaneSAT have been planned to launch.
• The International Energy Forum (IEF) launched the IEF Methane Initiative in June 2021 to develop a methane emissions measurement methodology.

In a historic moment Vikram-S, India’s first privately-developed rocket, lifted off from the Indian Space Research Organization’s (ISRO) launchpad in Sriharikota, under the ‘Prarambh’ Mission.

About Vikram-S Rocket:

• It is a single-stage suborbital launch vehicle
• It is India’s first privately developed rocket.
• It is named after Vikram Sarabhai, the founder of India’s space programme.
• It is developed by Skyroot Aerospace with support from ISRO and IN-SPACe (Indian National Space Promotion &Authorization Centre.
• The Vikram-S rocket is a single-stage sub-orbital launch vehicle.
  • It will carry three customer payloads and help test and validate technologies in the Vikram series space launch vehicles.
  • Its engine was developed using 3D printing with a superalloy.
  • The engine used in the launch vehicle is named after former president Dr. A P J Abdul Kalam, ‘Kalam-80’.
• The company is designing three Vikram rockets that will use various solid and cryogenic fuels to carry between 290 kg and 560 kg payloads to sun-synchronous polar orbits.
  • Vikram-I can carry 480 kilograms of payload to Low Earth Orbit. It will be powered by a Kalam-100 rocket.
  • Vikram-II is equipped to lift off with 595 kilograms of cargo.
  • Vikram-III can launch with an 815 kg to 500 km Low Inclination Orbit.

Prarambh Mission:

• The Prarambh mission is aimed at carrying three payloads into space, including a 2.5-kilogram payload that has been developed by students from several countries.
• The Prarambh mission and the Vikram-S rocket were developed by the Hyderabad-based startup with extensive support from the Indian Space Research Organisation (ISRO) and IN-SPACe (Indian National Space Promotion and Authorisation Centre).

Significance of privatization of the space sector

• Low costs: It has allowed companies like SpaceX, Blue Origin, etc. to cut their costs substantially and perform operations at reduced costs.
• Creating widespread interest: The publicity of their operations, like live streaming launches, has sparked widespread interest in space exploration among the general public.
• Quick decision-making: There is quick decision-making in private companies while the same process in a public enterprise would have to pass through several stages.
• Higher autonomy: private companies have a greater degree of autonomy in making decisions, which enables them to take up new projects.