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Amendments to Foreign Contribution (Regulation) Act

Why in News?

The Ministry of Home Affairs recently made changes to the Foreign Contribution (Regulation) Act (FCRA).

• In November 2020, the FCRA rules were made stricter, stating that NGOs engaging in political activities such as bandhs, strikes, or road blockades, even if not directly linked to a political party, will be considered political if they participate in active politics or party politics. All NGOs receiving funds must be registered under the FCRA.
• The government increased the import duty on gold from 7.5% to 12.5% to discourage gold imports, which contribute to a trade deficit and put pressure on the currency and forex reserves.
  • The increase in import duty on gold will result in higher costs for imports and discourage its import and consumption.

What is the FCRA?

About

The Foreign Contribution (Regulation) Act (FCRA) was passed in 1976 during the Emergency to address concerns about foreign powers interfering in India's affairs by funding independent organizations. These apprehensions were first raised in Parliament in 1969. The FCRA regulates foreign donations to individuals and associations to ensure that they operate "in a manner consistent with the values of a sovereign democratic republic."

Objectives

• Under the FCRA, anyone who wants to receive foreign donations must be registered and have a bank account solely for receiving these funds. They must use the donations only for the intended purpose and as specified in the Act.
• The Act prohibits specific individuals and entities, including election candidates, journalists, media companies, judges, government officials, political parties, and their office-bearers, from accepting foreign funds. It also prohibits organizations with political affiliations from receiving foreign donations.

Amendments

• In 2010, the FCRA was revised to combine the regulations on using foreign donations and to prevent their use for activities that are harmful to national interests.
• The current government made further changes to the FCRA in 2020, granting them greater authority and oversight over NGOs that receive and use foreign donations.

The key changes in the Foreign Contribution (Regulation) Act (FCRA) are:

• Indians can now receive up to ₹10 lakh annually from their relatives abroad under FCRA, up from the previous limit of ₹1 lakh.
• Individuals must now inform the government within 90 days if the amount received exceeds the limit, instead of the earlier 30-day period.
• The time frame for individuals and organizations to apply for registration or prior permission under FCRA to receive funds has been extended from 30 days to 45 days.
• Organizations receiving foreign funds can now use no more than 20% of such funds for administrative purposes, down from the previous limit of 50%.
• The number of compoundable offences under FCRA has been increased from seven to twelve, allowing for more flexibility in handling violations, rather than directly prosecuting organizations or individuals.

What are Compoundable Offences?

In simpler terms, compoundable offences are crimes that can be settled out of court, between the victim and the accused, with the approval of the court. These offences are usually less serious in nature and can be resolved through compromise or payment of compensation. This allows for a faster resolution of the case and reduces the burden on the legal system. However, not all offences are compoundable, and serious crimes like murder, rape, or kidnapping cannot be settled in this manner.

What is the importance of this move?

Boosts remittances:

• This will decrease the outflow of funds while increasing inward remittances.

Stabilizes foreign exchange reserves:

• The move will result in a higher inflow of funds into India, stabilizing foreign exchange reserves and the currency.
• Increasing the import duty on gold from 7.5% to 12.5% will also discourage gold imports, leading to higher gold prices in India.

Decreases trade deficit:

• With a higher inflow of funds and reduced outflow due to gold imports, the trade deficit will be reduced.
• The trade deficit in April and May 2022 reached USD 20.1 billion and USD 24.6 billion, respectively, totaling USD 44.7 billion in two months.
• In comparison, the trade deficit in April and May 2021 was USD 21.8 billion.

Model Tenancy Act

Context

• The Model Tenancy Act (MTA) is a government initiative in India to regulate the rental market and unlock the potential of the real estate sector.

Why in News

• It has been designed to help balance the rights and responsibilities of both landlords and tenants, streamline the process of renting properties, and encourage the growth of the rental market. Recently, four Indian states - Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Assam - have revised their tenancy laws in line with the MTA, as per the Ministry of Housing and Urban Affairs (MoHUA).

Agreement and Security Deposits in the Model Act

• The Model Act mandates the creation of a written agreement between landlords and tenants.
• The agreement should contain details regarding the rent, duration of the tenancy, and other relevant terms.
• To ensure compliance with the law, the landlord and tenant must sign the agreement.
• The Act also sets limits on the security deposit that landlords can require.
• For residential properties, the security deposit is limited to two months' rent.
• For non-residential properties, the maximum security deposit allowed is six months' rent.

Tenant Eviction under the Model Act

• The Model Act outlines specific conditions that must be met before a tenant can be evicted.
• One of these conditions is a refusal to pay the agreed-upon rent.
• Another condition is failure to pay rent for more than two months.
• The tenant may also be evicted if they occupy a part or the entirety of the premises without written consent.
• Misuse of the premises despite receiving a written notice is also grounds for eviction under the Model Act.

Jurisdiction

• Three-tier quasi-judicial dispute adjudication mechanism
• Comprises Rent Authority, Rent Court, and Rent Tribunal
• Civil courts have no jurisdiction over Model Act matters

Establishment

• Rent Authorities and Rent Courts created by District Collector with state government approval
• State or union territory government establishes Rent Tribunal in consultation with jurisdictional High Court

Urban & Rural Property Model

• The Act offers a framework for both urban and rural properties, as well as templates for residential and commercial properties.

Applicability Scope

• The Act is applicable to future transactions, transitioning people from informal agreements to specific contracts between landlords and tenants. It covers premises used for residential, commercial, or educational purposes, but excludes industrial use, hotels, lodging houses, and inns.
• The law will only apply to new tenancies, not existing ones.

Rent Increase Regulations

• The Act provides guidelines for legitimate rent increases, allowing for adjustments based on the agreement's terms and conditions, or requiring a written notice from the landlord to the tenant three months before the new rent takes effect.

Amenities and Landlord Access

• Landlords are prohibited from cutting power or water supplies during disputes with tenants.
• Additionally, landlords must provide a 24-hour notice before entering rented premises to conduct repairs or replacements.

Significance

• Creating a thriving rental housing market: The initiative seeks to establish a sustainable and inclusive rental housing market in the country.
• Building trust between tenants and landlords: By clearly defining the responsibilities of both parties, the trust deficit between them can be bridged.
• Addressing homelessness: The creation of adequate rental housing stock for all income groups will help tackle the issue of homelessness.
• Formalizing the rental housing market: The initiative aims to gradually shift rental housing towards the formal market through institutionalization.
• Unlocking vacant houses: The policy will encourage the use of empty properties for rental housing purposes.
• Encouraging private participation: The initiative is expected to boost private sector involvement in rental housing as a business model to address the significant housing shortage.

Key issues

• Availability and Affordability Issues: The Model Act may not effectively address crucial rental housing sector concerns like availability and affordability, despite experts suggesting various reforms to formalize the market.
• Excessive Specifications: The Model Act includes minute details, such as rent agreement responsibilities and maximum security deposit, which could be mutually agreed upon by contracting parties, raising questions about the need for central legislation.
• Privacy Concerns: The Model Act requires Aadhaar numbers for rent agreement registration, potentially violating a Supreme Court judgement, and uploading agreement details on a public portal, which might infringe on privacy rights.
• Dispute Resolution Time Frame: The Model Act does not specify a timeline for resolving certain disputes by adjudicatory bodies.

The Future of the Model Tenancy Act

 Progressive nature of the Act

• Balances interests of both tenants and landlords

Suggestions for improvement

• Implement incentives for tenants and landlords through subsidies and tax exemptions
• Encourage public-private partnerships in residential rental management
• Improve access to finance for low-income segments

Implementation of the Act

Requires states to make changes to existing rental laws for the Model Act to take effect

Shortage of Judges & Pendency of Cases

Context

• The Bombay High Court is currently experiencing an acute shortage of judges, with almost 40% of the posts remaining vacant.
• This shortage of judges has led to a significant backlog of cases, with 5.88 lakh cases currently pending before the court.

Pending Cases in Indian Judiciary

• According to the latest data, more than 4.7 crore cases are pending in Indian courts across various levels of the judiciary.
  • 87.4% of the pending cases are in subordinate courts.
  • 12.4% of the cases are pending in High Courts.
  • Nearly 1,82,000 cases have been pending for over 30 years.
• Status of Bombay High Court
  The National Judicial Data Grid (NJDG) reports the following details regarding pending cases before the Bombay High Court:
  • The Bombay High Court has 5.88 lakh cases pending before it.
  • Out of these cases, 1.14 lakh cases were filed in the last year alone.
  • More than 16,000 criminal cases have been pending for over 10 years.

Reasons behind the situation:

• The shortage of judges in high courts is the primary reason for the backlog of cases in Indian courts.
• Subordinate courts also face infrastructure issues in addition to the shortage of judges, with over 5,000 vacancies against a sanctioned strength of 24,490.
• The COVID-19 pandemic has further worsened the situation, with a drop in new cases due to digital courts but slower disposal rates leading to more pending cases.
• Bombay HC:
  • The Bombay High Court has a principal seat in Mumbai and benches in Aurangabad, Nagpur, and Goa.
  • Currently, it has 57 judges, including 48 permanent and nine additional ones.
  • The sanctioned strength of the court is 94, which is the second-largest after the Allahabad High Court.
  • However, due to upcoming retirements and elevations, the number of judges is expected to decrease.

Provisions in the Constitution for the Appointment of Judges

Appointment of Judges to Supreme Court and High Courts:

• The President of India is responsible for appointing judges to the Supreme Court and High Courts under Articles 124(2) and 217 of the Constitution, respectively.
  • Article 124(2) requires the President to consult with the Judges of the Supreme Court and the High Courts in the States before appointing any Judge to the Supreme Court.
  • Article 217 requires the President to consult with the Chief Justice of India, the Governor of the State, and the Chief Justice of the High Court before appointing any Judge to a High Court.
• These provisions ensure that the President consults with relevant stakeholders before making any appointments to the judiciary.

Collegium System of Judges' Appointment

• The Collegium System for appointment and transfer of judges has been established through the Supreme Court's judgments instead of an Act of Parliament or the Constitution.
• The Chief Justice of India and four other senior judges of the Supreme Court form the Supreme Court collegium, while the Chief Justice of a High Court and four other senior judges make up the High Court collegium.
• A High Court collegium recommends names for appointment, which reach the government after approval from the CJI and the Supreme Court collegium.
• The Collegium System mandates that judges of the higher judiciary are appointed solely through the collegium system, and the government only plays a role after the names have been decided by the collegium.

Limited Role of Government in Judicial Appointments

• The role of the government in the appointment of judges is restricted.
• The Home Ministry can conduct an inquiry only when a lawyer is being considered for appointment as a judge in the Supreme Court or a High Court.
• The government can raise objections or seek clarifications about the recommended candidates by the collegium.
• However, if the collegium reaffirms the same names, the government is obligated under Constitutional Bench rulings to appoint them as judges.

Measures for Improving the Indian Judicial System

Speedy Appointment of Judges:

• The government's failure to appoint judges deprives the common people of justice. The judge-to-population ratio needs improvement to reduce the workload of judges.

Guidelines by Union Government:

• The government has suggested measures such as increasing the number of working days of courts, establishing fast track courts, and creating Indian Courts and Tribunal Services (ICTs) to enhance the productivity of the court system.

E-platforms:

• Improving judicial infrastructure through e-platforms and setting up more courts is necessary. The Indian government has launched the e-Courts National portal ecourts.gov.in of the eCourts Project.

Strengthening the Alternative Dispute Resolution (ADR) mechanism:

• Arbitration, Mediation, and Conciliation are the modes used by ADR. It uses a neutral third party to help the parties communicate, discuss differences, and resolve disputes. ADR offers to settle all types of civil disputes provided by the law.

Counseling:

• Disputes can be resolved at the pre-litigation stage through counseling.

Mission Vatsalya Scheme

Context

• The Union Minister of Women and Child Development informed the Lok Sabha about the steps taken under ‘Mission Vatsalya’ to ensure women's empowerment.
• The Union Ministry of Women and Child Development is implementing “Mission Vatsalya” for the welfare and rehabilitation of children.
• It is a centrally Sponsored Scheme.
• For the effective implementation of various schemes and programmes, all major schemes under the Ministry of Women and Child Development, have been classified under 3 umbrella schemes;
  • Mission Poshan 2.0
  • Mission Vatsalya
  • Mission Shakti

Mission POSHAN 2.0

• The program offers comprehensive nutritional support.
• Its goal is to tackle malnutrition issues in children, adolescent girls, expecting mothers, and nursing women.
• The aim is to enhance the quality and distribution of supplementary nutrition programs while also emphasizing maternal nutrition, infant and young child feeding norms, wellness through AYUSH, and more.
• The mission combines several crucial tactics to achieve its goals:
  • Implementing corrective measures
  • Raising nutrition awareness
  • Employing communication strategies and fostering green ecosystems.
• The "Poshan Tracker" digital platform will bolster and ensure transparency in nutritional assistance delivery systems.

Programs included in Mission POSHAN 2.0:

• ICDS-Anganwadi Services
• Poshan Abhiyan
• Scheme for Adolescent Girls
• National Crèche Scheme

Mission Vatsalya:

• The primary goal of Mission Vatsalya is to provide a healthy and joyful childhood for all children in India.

The following areas are the focus of Mission Vatsalya:

• Service delivery structures
• Institutional care/services
• Non-institutional community-based care
• Emergency outreach services
• Training and capacity building
• Child Protection Services and Child Welfare Services

Mission Shakti:

• The objective of Mission Shakti is to provide holistic support to women throughout their lives by ensuring integrated care, protection, empowerment, and rehabilitation.
• Mission Shakti comprises two sub-schemes named ‘Sambal’ and ‘Samarthya’.
• The “Sambal” sub-scheme aims to ensure women’s safety and security.
• The “Samarthya” sub-scheme aims to empower women.
• Initiatives under SAMBAL;
  • The One-Stop Centre (OSC) is established to provide comprehensive services like medical aid, police assistance, legal aid, psychosocial counseling, and temporary support services to women affected by violence.
  • Beti Bachao Beti Padhao, an initiative to address the declining Child Sex Ratio.
  • Mahila Police Volunteers to report violence against women.
  • Women’s Helpline for support.
  • Nari Adalats to promote and facilitate alternative dispute resolution and gender justice within families and society.
• Initiatives under SAMARTHYA;
  • Gender Budgeting to mainstream gender perspectives in planning, budgeting, implementation, impact assessment, and policy/programme objectives and allocations.
  • Swadhar Greh for relief and rehabilitation to destitute and distressed women.
  • Working Women Hostels to provide safe accommodation to women working away from their homes.
  • National Creche Scheme for daycare facilities for children of working women aged 6 months to 6 years.
  • Pradhan Mantri Matru Vandana Yojana (PMMVY) to provide cash incentives for improved health and nutrition to pregnant and nursing mothers.
  • Umbrella ICDS Scheme is subsumed in ‘Samarthya’.

Current Status of the Schemes

Poshan Abhiyaan:

• The total cost of Poshan Abhiyaan is Rs 1,81,703 crore.
• The cost-sharing ratio between the Central and States/UTs is 60:40 for States and UTs with the legislature, 90:10 for North East Region and the Himalayan States and UT of Jammu & Kashmir, and 100% for Union Territories without legislature.

Mission Shakti:

• Mission Shakti has a total financial cost of Rs 20989 Crore.
• The sub-scheme ‘Sambal’ will be implemented with 100% central funding from the Nirbhaya Fund/ MWCD budget.
• The sub-scheme ‘Samarthya’ will be implemented with a funding ratio of 60:40 between Centre and State Governments / UTs with the legislature, except North East & Special Category States / UTs with legislature where the fund ratio will be 90:10. For UTs without legislature, 100% of funding will be provided by the Central Government.

Mission Vatsalya:

• The total financial cost of Mission Vatsalya is Rs 10916 Crore.

Empowering Women and Children: A Sustainable Approach

Importance of Empowerment and Protection:

• Women and children make up 67.7% of India's population, highlighting the need for their development and protection.
• Empowerment and protection of women and children are essential for sustainable and equitable development of the country.

Creating Safe and Inclusive Environments:

• It is crucial to create a secure and safe environment for women, free from discrimination and violence.
• An inclusive society with equal access to resources and opportunities for women and girls is essential for their participation in India's social, economic, and political development.

Family Empowerment:

• Empowering women in a family leads to the empowerment of the entire household.
• Providing education and good health to women benefits the entire family.
• Securing the future of women secures the future of the entire household.

The Way Forward:

• To promote sustainable development in India, it is crucial to prioritize the empowerment and protection of women and children.
• This can be achieved through creating safe and inclusive environments and empowering families.
• By doing so, India can move towards a more equitable and prosperous future for all.

Financial Direct Assistance to Apprentices Through DBT

Context

The Ministry of Skill Development and Entrepreneurship (MSDE) has included the National Apprenticeship Promotion Plan (NAPS) as a part of the Direct Benefit Transfer (DBT) scheme, enabling direct government benefits to all apprentices.

National Apprenticeship Promotion Plan (NAPS)

• NAPS was launched in 2016 to encourage apprenticeship training across India and offer financial assistance to organizations providing apprenticeships. This program is a crucial step towards realizing the objectives of Skill India campaign.
• The program aims to promote apprenticeship by encouraging employers to hire apprentices and assign them relevant work responsibilities while focusing on in-depth skill development.
• Currently, over 12 lakh apprentices are working in various industries.
• Previously, employers had to pay the full fee to the apprentices before requesting reimbursement from the government.

Direct Benefit Transfer Scheme

• The government's contribution, 25% of the stipend payable up to Rs. 1500 per month, will be deposited immediately into the apprentices' bank accounts through the National Skill Development Corporation (NSDC) under the DBT program.

Understanding Direct Benefit Transfer (DBT)

• DBT, launched on January 1, 2013, aims to enhance the government's delivery system by streamlining the process of welfare schemes, ensuring faster and more secure fund transfers, and reducing fraud. It involves directly transferring subsidies and other payments into beneficiaries' accounts instead of routing them through government offices.
• DBT is enabled by JAM (Jan Dhan, Aadhaar, and Mobile), which currently supports over 22 crore Jan Dhan accounts, over 100 crore Aadhaar numbers, and approximately 100 crore mobile connections. This enables the implementation of DBT across all welfare schemes in India, including states and union territories.
• By improving efficiency, effectiveness, transparency, and accountability, DBT helps build citizens' confidence in governance. The use of modern technology and IT tools aligns with the vision of maximum governance with minimal government intervention.

Droupadi Murmu: 15th President of India

In News:

• Droupadi Murmu, the former Jharkhand Governor and National Democratic Alliance candidate, was recently elected as the 15th President of India.

Brief Introduction

• Droupadi Murmu belongs to the Mayurbhanj district of Odisha.
• She holds the distinction of being the first and youngest tribal woman to be elected to her position.
• Murmu is a member of the Santhal tribe.
• She has the distinction of being the only Governor of Jharkhand to complete a full tenure so far.

President of India

• The Indian Constitution mandates the existence of a President (Article 52).
• The President holds the nation's highest elective office and is elected according to the Constitution and the 1952 Presidential and vice-Presidential Elections Act.
  • This Act is supported by the 1974 Presidential and Vice-Presidential Elections Rules, forming a comprehensive code for conducting presidential elections.
• Election process
  • The President is chosen by an electoral college, including MPs from both Parliament houses and MLAs from Delhi and Puducherry states.
  • Nominated members from Rajya Sabha, Lok Sabha, and Assemblies, as well as state Legislative Council members, are excluded from the Electoral College.
• Election authority
  • The Election Commission of India is responsible for conducting presidential elections, as per Article 324 of the Constitution.
• Presidential term
  • The President serves a 5-year term starting from their office entry date.
  • The President remains in office beyond their term until a successor takes over, as stated in Article 56 of the Indian Constitution.

Roles and duties of the President

Legislative authority held by India's President

• The President can dissolve the Lok Sabha.
• A bill passed by both parliamentary houses becomes law only after presidential approval (with some limitations).
• The President can nominate 12 members to the Rajya Sabha, recognizing their achievements in science, art, literature, and social service.

Financial authority

• The President manages the Contingency Fund of India for unexpected expenses such as floods, droughts, or wars.
• The President's prior recommendation is necessary for introducing Money Bills and Financial Bills in Parliament.
• The President appoints the finance commission every 5 years, assisting the Central and state governments in determining revenue distribution.

Diplomatic authority

• International treaties and agreements approved by Parliament are negotiated and concluded in the President's name.

Military authority

• The President is the Supreme Commander of the Armed Forces.
• The President appoints the heads of the Army, Navy, and Air Force.

Judicial authority

• The President appoints the Chief Justice of India.
• The President appoints the Judges of the Supreme Court and High Courts.
• The President can grant pardons or respite to individuals convicted of any offense.

Pardoning power

• The President can grant pardons for offenses against union law, sentences handed down by military courts, or death sentences.

Emergency Powers of the President: National, State, and Financial Emergencies under Articles 352, 356 & 360

• The President has the authority to announce different types of emergencies, including national, state, and financial emergencies, which are defined in Articles 352, 356 & 360.
• During times of emergency, the President can govern either the entire nation or specific states.

Additional Provisions Regarding the Office of the President

• Situations where the President leaves office before serving a full term are of two types:
  • The President resigns by writing to the Vice-President.
  • The President is impeached for violating the constitution.
• According to Article 61 of the Constitution, to impeach a President for violating the constitution:
  • A charge must be presented by either House of Parliament.
  • The charge must be included in a resolution moved after at least 14 days' written notice signed by at least one-fourth of the total number of House members.
  • The resolution must be passed by a two-thirds majority of the total membership of the House.
• Article 58 of the Constitution outlines the qualifications for Presidential candidates:
  • The candidate must be a citizen of India.
  • The candidate must be at least 35 years old.
  • The candidate must be qualified to be a member of the House of the People.
  • The candidate cannot hold any government office that yields profit.
• A member of Parliament or a State Legislature cannot also serve as President. If a member is elected President, they are considered to have vacated their seat.
• Article 71 of the Constitution assigns the Supreme Court the responsibility to resolve doubts and disputes that arise from the election of a President or Vice-President.
• The Presidential and Vice-Presidential Elections Act, 1952 permits the filing of an election petition before the Supreme Court.