The Hindu Editorial Analysis- 11th November 2022 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Context

A Special  Court dealing with cases under the Prevention of Money Laundering Act (PMLA) in Mumbai has made some extraordinarily scathing observations about the way the Enforcement Directorate (ED) functions. While granting bail to Sanjay Raut, Shiv Sena (Uddhav Thackeray) MP, the court has termed his arrest not only illegal but also one recorded for “no reason” at all.

What has the Supreme Court said in the Ruling?

• Enforcement Case Information Report (ECIR):
  • Enforcement Case Information Report (ECIR) cannot be equated with an FIR.
  • Supplying an ECIR in every case to the person concerned is not mandatory and “it is enough if the Enforcement Directorate (ED), at the time of arrest, discloses the grounds of such arrest”.
  • The ECIR is an internal document of the ED and the fact that FIR in respect of scheduled offence has not been recorded, does not come in the way of ED authorities to commence inquiry/investigation
• Section 3 of PMLA Act:
  • Section 3 of the PMLA Act 2002 has a wider reach and captures that offence of money laundering is an independent offence regarding the process or activity connected with the proceeds of crime which had been derived or obtained as a result of criminal activity relating to or in relation to a scheduled offence.
  • The ruling also made it clear that:
    • Offence under Section 3 “is dependent on illegal gain of property as a result of criminal activity relating to a scheduled offence”.
    • The Authorities under the 2002 Act cannot prosecute any person on notional basis or on the assumption that a scheduled offence has been committed, unless it is so registered with the jurisdictional police and pending enquiry including by way of criminal complaint before the competent forum.
• Enforcement Directorate:
  • The bench upheld the ED’s power under Section 5 of the Act (order provisional attachment of any proceeds of crime).
  • The Court stated that Section 5 provides for a balancing arrangement to secure the interests of the person and also ensures that the proceeds of crime remain available to be dealt with in the manner provided by the 2002 Act.
  • It rejected the argument that ED authorities are police officers and, hence, a statement recorded by them under Section 50 of the Act would be hit by Article 20(3) of the Constitution which says no person accused of an offence shall be compelled to be a witness against himself.

What do we know about the Prevention of Money Laundering Act, 2002?

• It is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money-laundering and related matters.
• It forms the core of the legal framework put in place by India to combat Money Laundering.
• The provisions of this act are applicable to all financial institutions, banks (Including RBI), mutual funds, insurance companies, and their financial intermediaries.
• PMLA (Amendment) Act, 2012:
• Adds the concept of ‘reporting entity’ which would include a banking company, financial institution, intermediary etc.
• PMLA, 2002 levied a fine up to Rs 5 lakh, but the amendment act has removed this upper limit.
• It has provided for provisional attachment and confiscation of property of any person involved in such activities.

What do we know about the Enforcement Directorate?

• History:
  • The Directorate of Enforcement or the ED is a multi-disciplinary organization mandated with investigation of economic crimes and violations of foreign exchange laws.
  • The origin of this Directorate goes back to 1^st May, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947 (FERA ’47).
  • With the onset of the process of economic liberalization, FERA, 1973, which was a regulatory law, was repealed and in its place, Foreign Exchange Management Act, 1999 (FEMA) came into operation.
  • Recently, with the increase in the number of cases relating to economic offenders taking shelter in foreign countries, the Government has passed the Fugitive Economic Offenders Act, 2018 (FEOA) and ED is entrusted with its enforcement.
• Functions:
  • The Prevention of Money Laundering Act, 2002 (PMLA):
    • ED has been given the responsibility to enforce the provisions of the PMLA by conducting investigation to trace the assets derived from proceeds of crime, to provisionally attach the property and to ensure prosecution of the offenders and confiscation of the property by the Special court.
  • The Foreign Exchange Management Act, 1999 (FEMA):
    • ED has been given the responsibility to conduct investigation into suspected contraventions of foreign exchange laws and regulations, to adjudicate and impose penalties on those adjudged to have contravened the law.
  • The Fugitive Economic Offenders Act, 2018 (FEOA):
    • It is a law whereby the Directorate is mandated to attach the properties of the fugitive economic offenders who have escaped from India warranting arrest and provide for the confiscation of their properties to the Central Government.
  • Sponsoring agency under COFEPOSA:
    • Under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), Directorate is empowered to sponsor cases of preventive detention with regard to contraventions of FEMA.

Content slot

Context

• Recently, the Union Cabinet has approved the new guidelines for television channels in India.

More about the news

• About:
  • The new guidelines are for uplinking and downlinking of television channels in India.
  • Under the guidelines, all the stations holding permission would have to broadcast content on issues of national importance and social relevance for at least 30 minutes every day.
• Exemptions:
  • The guidelines exclude foreign channels and cases where it may not be feasible.
  • The guidelines also exempt the channels including those related to sports, where it would not be feasible to broadcast such content. 
• The provision has been introduced as “airwaves/frequencies are public property and need to be used in the best interest of the society”. 
  • The eight listed themes include: 
    • Education and spread of literacy; 
    • Agriculture and rural development; 
    • Health and family welfare; 
    • Science and technology; 
    • Welfare of women; 
    • Welfare of the weaker sections of society; 
    • Protection of environment and of cultural heritage; and 
    • National integration.
• Cases of non-compliance:
  • Once implemented, the Ministry will monitor the channels for such content, and in case someone is found to be non-compliant, an explanation will be sought.

Making India a teleport hub

• Uplinking foreign channels from Indian teleports:
  • While specific timelines have been proposed for the grant of permission, imited Liability Partnership (LLP)/companies would be allowed to uplink foreign channels from Indian teleports.
  • This would create employment opportunities and make India a teleport-hub for other countries.
    • Channel could be uplinked by using facilities of more than one teleport/satellite. 
    • The guidelines have broadened the possibility of allowing the transfer of TV channel/teleport to a company/LLP, as permissible under the Companies Act or the Limited Liability Act.
• Extended permissions:
  • A news agency could now get permission for a five-year period as against one year at present.
• Penalty:
  • The penalty clauses have also been rationalised and separate nature of penalties have been proposed for different types of contraventions as against uniform penalty at present. 

Regulation of media in India:

• Media in India is mostly self-regulated.  
  • The existing bodies for regulation of media such as the Press Council of India which is a statutory body and the News Broadcasting Standards Authority, a self-regulatory organization, issue standards which are more in the nature of guidelines. 
• Print Media:
  • Press Council of India (PCI): 
    • The PCI was established under the PCI Act of 1978 for the purpose of preserving the freedom of the press and of maintaining and improving the standards of newspapers and news agencies in India.
  • Functions: 
    • Helping newspapers maintain their independence;
    • Build a code of conduct for journalists and news agencies; 
    • Help maintain “high standards of public taste” and foster responsibility among citizens; and
    • Review developments likely to restrict flow of news.
• Electronic Media:
  • Today news channels are governed by mechanisms of self-regulation.  
  • One such mechanism has been created by the News Broadcasters Association (NBA). 
    
  • The NBA has devised a Code of Ethics to regulate television content. The News Broadcasting Standards Authority (NBSA), of the NBA, is empowered to warn, admonish, censure, express disapproval and fine the broadcaster a sum upto Rs. 1 lakh for violation of the Code.  

• Another such organization is the Broadcast Editors’ Association. 
• The Advertising Standards Council of India has also drawn up guidelines on content of advertisements. 
• These groups govern through agreements and do not have any statutory powers.
• Social Media:
  • Certain standards have been prescribed for content accessible over the internet under the IT Rules 2011.  
  • The Ministry of Electronics and Information Technology has published a fresh draft of amendments to the Information Technology Rules, 2021.
• Government has also come up with Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021.
• However, a regulatory body such as the PCI or the CBFC does not exist.  Complaints are addressed to the internet service provider or the host.

Way Ahead

• Freedom of press:
  • The freedom of press is a necessary element of the freedom of expression that involves a right to receive and impart information without which democracy becomes an empty slogan. 
  • But this right is not absolute and is subjected to the reasonable restrictions of defamation and contempt of court.
• Regulation of media & Role of civil society:
  • The media should practice better self-regulation.
    • If the government starts regulating the media, the complete purpose would be defeated.
  • An informed, cultivated, and interested civil society can be the best watchdog over politics and the media.