Week IV December 2016 UPSC Notes | EduRev

Created by: Abhimanu Ias

UPSC : Week IV December 2016 UPSC Notes | EduRev

 Page 1


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Dec 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
Page 2


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Dec 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
RBI imposes penalty on five foreign banks for forex violations  
? RBI imposes penalty on 5 foreign banks for violating FEMA rules The Reserve Bank of India (RBI) has imposed 
fine on five foreign banks namely, Standard Chartered Bank, Deutsche Bank, Bank of America, Bank of Tokyo 
Mitsubishi and The Royal Bank of Scotland for violating reporting requirements of the Foreign Exchange 
Management Act (FEMA), 1999.  
? The fines were imposed by Central Bank by exercising its powers under the provisions of Section 11(3) of 
FEMA 1999. Germany’s Deutsche Bank has been imposed a fine of Rs 20,000 while the rest of the banks have 
been fined Rs 10,000 each. 
About FEMA: 
? The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India "to consolidate and 
amend the law relating to foreign exchange with the objective of facilitating external trade and payments and 
for promoting the orderly development and maintenance of foreign exchange market in India".    
? It was passed in the winter session of Parliament in 1999, replacing the Foreign Exchange Regulation Act 
(FERA). 
Main features of FEMA: 
? Activities like payments created to somebody outside Indian or receipt from them, alongside the deals in 
interchange and foreign security is restricted. It’s FEMA that provides the central government the ability to 
impose the restrictions. 
? Restrictions are obligatory on residents of Indian do transactions in exchange, foreign security or an own or 
hold unmovable property abroad. 
? Without general or specific permission of the FEMA restricts the transactions involving interchange or foreign 
security and payments from outside the country to India the transactions should to be created solely through 
a licensed person. 
? Deals in exchange beneath this account by a licensed person may be restricted by the Central Government, 
supported public interest. 
? Although commercialism or drawing of exchange is finished through a licensed person, the run batted in is 
authorized by this Act to subject the capital account transactions to variety of restrictions. 
? Residents of India are allowable to hold out transactions in interchange, foreign security or to possess or hold 
unmovable property abroad if the currency, security or property was owned  or no inheritable once he/she 
was living outside Asian nation, or once it had been genetic by him/her from somebody living outside India. 
? Exporters are required to furnish their export details to run batted in. to make sure that the transactions are 
allotted properly, run batted in could raise the exporters to abide by to its necessary necessities. 
‘Google Tax’ detrimental to startup ecosystem 
? The equalisation levy, also known as Google Tax’ which the government is imposing on online advertising 
revenue by non-resident e-commerce companies earned in India, is expected to adversely affect the startup 
ecosystem going forward. 
Page 3


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Dec 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
RBI imposes penalty on five foreign banks for forex violations  
? RBI imposes penalty on 5 foreign banks for violating FEMA rules The Reserve Bank of India (RBI) has imposed 
fine on five foreign banks namely, Standard Chartered Bank, Deutsche Bank, Bank of America, Bank of Tokyo 
Mitsubishi and The Royal Bank of Scotland for violating reporting requirements of the Foreign Exchange 
Management Act (FEMA), 1999.  
? The fines were imposed by Central Bank by exercising its powers under the provisions of Section 11(3) of 
FEMA 1999. Germany’s Deutsche Bank has been imposed a fine of Rs 20,000 while the rest of the banks have 
been fined Rs 10,000 each. 
About FEMA: 
? The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India "to consolidate and 
amend the law relating to foreign exchange with the objective of facilitating external trade and payments and 
for promoting the orderly development and maintenance of foreign exchange market in India".    
? It was passed in the winter session of Parliament in 1999, replacing the Foreign Exchange Regulation Act 
(FERA). 
Main features of FEMA: 
? Activities like payments created to somebody outside Indian or receipt from them, alongside the deals in 
interchange and foreign security is restricted. It’s FEMA that provides the central government the ability to 
impose the restrictions. 
? Restrictions are obligatory on residents of Indian do transactions in exchange, foreign security or an own or 
hold unmovable property abroad. 
? Without general or specific permission of the FEMA restricts the transactions involving interchange or foreign 
security and payments from outside the country to India the transactions should to be created solely through 
a licensed person. 
? Deals in exchange beneath this account by a licensed person may be restricted by the Central Government, 
supported public interest. 
? Although commercialism or drawing of exchange is finished through a licensed person, the run batted in is 
authorized by this Act to subject the capital account transactions to variety of restrictions. 
? Residents of India are allowable to hold out transactions in interchange, foreign security or to possess or hold 
unmovable property abroad if the currency, security or property was owned  or no inheritable once he/she 
was living outside Asian nation, or once it had been genetic by him/her from somebody living outside India. 
? Exporters are required to furnish their export details to run batted in. to make sure that the transactions are 
allotted properly, run batted in could raise the exporters to abide by to its necessary necessities. 
‘Google Tax’ detrimental to startup ecosystem 
? The equalisation levy, also known as Google Tax’ which the government is imposing on online advertising 
revenue by non-resident e-commerce companies earned in India, is expected to adversely affect the startup 
ecosystem going forward. 
 
 
? The levy which is at 6% presently became effective on June 1. If passed on to start-ups, the applicable tax is 
expected to be in excess of 22%, including the 15% service tax and could further increase if GST comes into 
effect. 
? Besides, the fact that the levy has been notified in addition to taxes payable by a businessman on imported 
online services unduly increases the cost of doing business for startups which in turn stifles innovation. 
? Usually, small scale technology driven companies generally do not have enough capital to engage employees 
inhouse for all necessary business activities. Google tax adds to this problem. 
? Also, emerging startups burn a lot of cash in the first few years before becoming profitable and when the levy 
is expanded to include a vast number of other digital services the burden is set to multiply exponentially, 
hampering even more serious cost to innovation. 
? So, in order to solve this problem, A cap should be placed on the rate of taxation at the very least, and the 
number of notified services subject to the levy should not be expanded until there is an impact study 
undertaken by the government. 
What is this Google Tax (or Amazon or Facebook Tax)? 
? According to the Budget announcement, any person or entity that makes a payment exceeding Rs 1 lakh in a 
financial year to a non-resident technology company will now need to withhold 6% tax on the gross amount 
being paid as an equalisation levy. 
? This rule is applicable when the payment is made to companies that don't have a permanent establishment in 
India. 
? This tax, however, is only applicable when the payment has been made to avail certain B2B(business to 
business ) services from these technology companies. 
? A specified service which comes under this tax includes online and digital advertising or any other services for 
using the digital advertising space. 
? If any Indian business owner or company that fails to deduct this tax or equalisation levy or doesn't deposit it 
with the government, then the company will not be allowed to consider the expenses in calculating taxable 
profits. This will increase the taxable income, thereby hiking the company's tax liability. 
Analysis: 
? The tax has been aimed at technology companies that make money via online advertisements. Their 
revenue is mostly routed to a tax haven country. This tax will help bring the said companies under the tax 
radar in India. With this new tax, India has also joined the list of other Organisation for Economic 
Cooperation and Development (OECD) and European countries where a similar tax is already in place. 
? This levy has come in for criticism from some quarters, as the foreign entity, will not get a foreign tax credit 
for such deduction in its home country. ALso, as tax is already deducted at source on the payments made 
to the foreign entity, imposition of an equalisation levy, it is viewed amounts to double taxation. 
? The equalisation levy, is expected to impact the bottom lines of companies such Google, Yahoo, Facebook, 
Twitter and others, unless they deal with Indian business entities via their subsidiaries in India. 
? This tax will impact the online start ups which are mainly dependent on facebook and google for their 
advertisement. 
? Also the proposed ‘Equalisation levy’ is indirect, and it falls upon Indian advertisers to collect the 6% tax 
and deposit it with the government. Hence it is felt that the Googles and the Amazons are simply more 
likely to increase the price of their products or services to recoup the taxed amount. So, basically it will 
harm the Indian companies.  
Centre’s nod for apex corridor development body 
? The Union Cabinet approved the expansion of the mandate of Delhi Mumbai Industrial Corridor Project 
Implementation Trust Fund (DMIC-PITF Trust).  
? It is now re-designated as National Industrial Corridor Development & Implementation Trust (NICDIT) for 
integrated development of all industrial corridors with permission to utilise financial assistance already 
sanctioned and sanction of an additional amount of Rs 1584 crore, up to March 31, 2022. 
Page 4


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Dec 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
RBI imposes penalty on five foreign banks for forex violations  
? RBI imposes penalty on 5 foreign banks for violating FEMA rules The Reserve Bank of India (RBI) has imposed 
fine on five foreign banks namely, Standard Chartered Bank, Deutsche Bank, Bank of America, Bank of Tokyo 
Mitsubishi and The Royal Bank of Scotland for violating reporting requirements of the Foreign Exchange 
Management Act (FEMA), 1999.  
? The fines were imposed by Central Bank by exercising its powers under the provisions of Section 11(3) of 
FEMA 1999. Germany’s Deutsche Bank has been imposed a fine of Rs 20,000 while the rest of the banks have 
been fined Rs 10,000 each. 
About FEMA: 
? The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India "to consolidate and 
amend the law relating to foreign exchange with the objective of facilitating external trade and payments and 
for promoting the orderly development and maintenance of foreign exchange market in India".    
? It was passed in the winter session of Parliament in 1999, replacing the Foreign Exchange Regulation Act 
(FERA). 
Main features of FEMA: 
? Activities like payments created to somebody outside Indian or receipt from them, alongside the deals in 
interchange and foreign security is restricted. It’s FEMA that provides the central government the ability to 
impose the restrictions. 
? Restrictions are obligatory on residents of Indian do transactions in exchange, foreign security or an own or 
hold unmovable property abroad. 
? Without general or specific permission of the FEMA restricts the transactions involving interchange or foreign 
security and payments from outside the country to India the transactions should to be created solely through 
a licensed person. 
? Deals in exchange beneath this account by a licensed person may be restricted by the Central Government, 
supported public interest. 
? Although commercialism or drawing of exchange is finished through a licensed person, the run batted in is 
authorized by this Act to subject the capital account transactions to variety of restrictions. 
? Residents of India are allowable to hold out transactions in interchange, foreign security or to possess or hold 
unmovable property abroad if the currency, security or property was owned  or no inheritable once he/she 
was living outside Asian nation, or once it had been genetic by him/her from somebody living outside India. 
? Exporters are required to furnish their export details to run batted in. to make sure that the transactions are 
allotted properly, run batted in could raise the exporters to abide by to its necessary necessities. 
‘Google Tax’ detrimental to startup ecosystem 
? The equalisation levy, also known as Google Tax’ which the government is imposing on online advertising 
revenue by non-resident e-commerce companies earned in India, is expected to adversely affect the startup 
ecosystem going forward. 
 
 
? The levy which is at 6% presently became effective on June 1. If passed on to start-ups, the applicable tax is 
expected to be in excess of 22%, including the 15% service tax and could further increase if GST comes into 
effect. 
? Besides, the fact that the levy has been notified in addition to taxes payable by a businessman on imported 
online services unduly increases the cost of doing business for startups which in turn stifles innovation. 
? Usually, small scale technology driven companies generally do not have enough capital to engage employees 
inhouse for all necessary business activities. Google tax adds to this problem. 
? Also, emerging startups burn a lot of cash in the first few years before becoming profitable and when the levy 
is expanded to include a vast number of other digital services the burden is set to multiply exponentially, 
hampering even more serious cost to innovation. 
? So, in order to solve this problem, A cap should be placed on the rate of taxation at the very least, and the 
number of notified services subject to the levy should not be expanded until there is an impact study 
undertaken by the government. 
What is this Google Tax (or Amazon or Facebook Tax)? 
? According to the Budget announcement, any person or entity that makes a payment exceeding Rs 1 lakh in a 
financial year to a non-resident technology company will now need to withhold 6% tax on the gross amount 
being paid as an equalisation levy. 
? This rule is applicable when the payment is made to companies that don't have a permanent establishment in 
India. 
? This tax, however, is only applicable when the payment has been made to avail certain B2B(business to 
business ) services from these technology companies. 
? A specified service which comes under this tax includes online and digital advertising or any other services for 
using the digital advertising space. 
? If any Indian business owner or company that fails to deduct this tax or equalisation levy or doesn't deposit it 
with the government, then the company will not be allowed to consider the expenses in calculating taxable 
profits. This will increase the taxable income, thereby hiking the company's tax liability. 
Analysis: 
? The tax has been aimed at technology companies that make money via online advertisements. Their 
revenue is mostly routed to a tax haven country. This tax will help bring the said companies under the tax 
radar in India. With this new tax, India has also joined the list of other Organisation for Economic 
Cooperation and Development (OECD) and European countries where a similar tax is already in place. 
? This levy has come in for criticism from some quarters, as the foreign entity, will not get a foreign tax credit 
for such deduction in its home country. ALso, as tax is already deducted at source on the payments made 
to the foreign entity, imposition of an equalisation levy, it is viewed amounts to double taxation. 
? The equalisation levy, is expected to impact the bottom lines of companies such Google, Yahoo, Facebook, 
Twitter and others, unless they deal with Indian business entities via their subsidiaries in India. 
? This tax will impact the online start ups which are mainly dependent on facebook and google for their 
advertisement. 
? Also the proposed ‘Equalisation levy’ is indirect, and it falls upon Indian advertisers to collect the 6% tax 
and deposit it with the government. Hence it is felt that the Googles and the Amazons are simply more 
likely to increase the price of their products or services to recoup the taxed amount. So, basically it will 
harm the Indian companies.  
Centre’s nod for apex corridor development body 
? The Union Cabinet approved the expansion of the mandate of Delhi Mumbai Industrial Corridor Project 
Implementation Trust Fund (DMIC-PITF Trust).  
? It is now re-designated as National Industrial Corridor Development & Implementation Trust (NICDIT) for 
integrated development of all industrial corridors with permission to utilise financial assistance already 
sanctioned and sanction of an additional amount of Rs 1584 crore, up to March 31, 2022. 
 
 
 
? The five industrial corridors at present cover the states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, 
Jharkhand, West Bengal, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, Karnataka, Andhra Pradesh and 
Tamil Nadu.  
? These Five corridors are - Delhi Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor 
(CBIC), Amritsar Kolkata Industrial Corridor (AKIG), Bengaluru- Mumbai Economic Corridor (BMEC) and Vizag-
Chennai Industrial Corridor (VCIC) -- have been planned for development by Government of India. 
? This strategy has been adopted by centre in order to accelerate the growth in manufacturing and for ensuring 
scientifically planned urbanisation.  
About National Industrial Corridor Development & Implementation Trust (NICDIT): 
? NICDIT would be an apex body under the administrative control of DIPP(Department of Industrial Policy & 
Promotion) for coordinated and unified development of all the industrial corridors in the country, will 
channelize  Government of India’s funds as well as institutional funds while ensuring that the various 
corridors are properly planned and implemented keeping in view the broad national perspectives regarding 
industrial and city development, and will support project development activities, appraise, approve and 
sanction projects.  
? It will coordinate all central efforts for the development of industrial corridor projects and will monitor their 
implementation. 
? DMICDC (Delhi Mumbai Industrial Corridor Development Corporation Limited) will function as a knowledge 
partner to NICDIT in respect of all the industrial corridors in addition to its present DMIC work. 
? An Apex Monitoring Authority under the chairpersonship of the Finance Minister will be constituted to 
periodically review the activities of NICDIT and progress of the projects. It will consist of Minister-in-charge of 
Ministry of Commerce & Industry, Minister of Railways, Minister of Road Transport & Highways, Minister of 
Shipping, Vice-Chairman of NITI Aayog and Chief Ministers of States concerned as Members. 
? The Board of Trustees of NICDIT will consist of (i) Chairperson - Secretary, DIPP, (ii) Secretary, Department of 
Expenditure, (iii) Secretary, Department of Economic Affairs, (iv) Secretary, Road Transport & Highways,  (v) 
Secretary, Shipping (vi) Chairman, Railway Board, (vii) CEO, NITI Aayog, and (viii) Member Secretary, who will 
act as full time CEO of NICDIT. CEO, DMICDC will also function as Member Secretary/ CEO of the NICDIT. 
Analysis: 
? The formation of the NICDIT will enable development and implementation of industrial corridor projects 
across India by bringing in holistic planning and development approach and sharing the learning from 
development of industrial corridors, which will enable innovation in areas such as planning, design 
development and funding of such projects. 
? It will help enhance the share of manufacturing in the country, attract investment in manufacturing and 
service industry sectors, which will have a catalytic effect on up-gradation and development of skills of the 
workforce and generation of employment opportunities 
? NICSIT will channelise Government of India funds as well as institutional funds while ensuring that the 
various corridors are properly planned and implemented keeping in view the broad national perspectives 
regarding industrial and city development, and will support project development activities, appraise, 
approve and sanction projects.  
 
Page 5


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Dec 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
RBI imposes penalty on five foreign banks for forex violations  
? RBI imposes penalty on 5 foreign banks for violating FEMA rules The Reserve Bank of India (RBI) has imposed 
fine on five foreign banks namely, Standard Chartered Bank, Deutsche Bank, Bank of America, Bank of Tokyo 
Mitsubishi and The Royal Bank of Scotland for violating reporting requirements of the Foreign Exchange 
Management Act (FEMA), 1999.  
? The fines were imposed by Central Bank by exercising its powers under the provisions of Section 11(3) of 
FEMA 1999. Germany’s Deutsche Bank has been imposed a fine of Rs 20,000 while the rest of the banks have 
been fined Rs 10,000 each. 
About FEMA: 
? The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India "to consolidate and 
amend the law relating to foreign exchange with the objective of facilitating external trade and payments and 
for promoting the orderly development and maintenance of foreign exchange market in India".    
? It was passed in the winter session of Parliament in 1999, replacing the Foreign Exchange Regulation Act 
(FERA). 
Main features of FEMA: 
? Activities like payments created to somebody outside Indian or receipt from them, alongside the deals in 
interchange and foreign security is restricted. It’s FEMA that provides the central government the ability to 
impose the restrictions. 
? Restrictions are obligatory on residents of Indian do transactions in exchange, foreign security or an own or 
hold unmovable property abroad. 
? Without general or specific permission of the FEMA restricts the transactions involving interchange or foreign 
security and payments from outside the country to India the transactions should to be created solely through 
a licensed person. 
? Deals in exchange beneath this account by a licensed person may be restricted by the Central Government, 
supported public interest. 
? Although commercialism or drawing of exchange is finished through a licensed person, the run batted in is 
authorized by this Act to subject the capital account transactions to variety of restrictions. 
? Residents of India are allowable to hold out transactions in interchange, foreign security or to possess or hold 
unmovable property abroad if the currency, security or property was owned  or no inheritable once he/she 
was living outside Asian nation, or once it had been genetic by him/her from somebody living outside India. 
? Exporters are required to furnish their export details to run batted in. to make sure that the transactions are 
allotted properly, run batted in could raise the exporters to abide by to its necessary necessities. 
‘Google Tax’ detrimental to startup ecosystem 
? The equalisation levy, also known as Google Tax’ which the government is imposing on online advertising 
revenue by non-resident e-commerce companies earned in India, is expected to adversely affect the startup 
ecosystem going forward. 
 
 
? The levy which is at 6% presently became effective on June 1. If passed on to start-ups, the applicable tax is 
expected to be in excess of 22%, including the 15% service tax and could further increase if GST comes into 
effect. 
? Besides, the fact that the levy has been notified in addition to taxes payable by a businessman on imported 
online services unduly increases the cost of doing business for startups which in turn stifles innovation. 
? Usually, small scale technology driven companies generally do not have enough capital to engage employees 
inhouse for all necessary business activities. Google tax adds to this problem. 
? Also, emerging startups burn a lot of cash in the first few years before becoming profitable and when the levy 
is expanded to include a vast number of other digital services the burden is set to multiply exponentially, 
hampering even more serious cost to innovation. 
? So, in order to solve this problem, A cap should be placed on the rate of taxation at the very least, and the 
number of notified services subject to the levy should not be expanded until there is an impact study 
undertaken by the government. 
What is this Google Tax (or Amazon or Facebook Tax)? 
? According to the Budget announcement, any person or entity that makes a payment exceeding Rs 1 lakh in a 
financial year to a non-resident technology company will now need to withhold 6% tax on the gross amount 
being paid as an equalisation levy. 
? This rule is applicable when the payment is made to companies that don't have a permanent establishment in 
India. 
? This tax, however, is only applicable when the payment has been made to avail certain B2B(business to 
business ) services from these technology companies. 
? A specified service which comes under this tax includes online and digital advertising or any other services for 
using the digital advertising space. 
? If any Indian business owner or company that fails to deduct this tax or equalisation levy or doesn't deposit it 
with the government, then the company will not be allowed to consider the expenses in calculating taxable 
profits. This will increase the taxable income, thereby hiking the company's tax liability. 
Analysis: 
? The tax has been aimed at technology companies that make money via online advertisements. Their 
revenue is mostly routed to a tax haven country. This tax will help bring the said companies under the tax 
radar in India. With this new tax, India has also joined the list of other Organisation for Economic 
Cooperation and Development (OECD) and European countries where a similar tax is already in place. 
? This levy has come in for criticism from some quarters, as the foreign entity, will not get a foreign tax credit 
for such deduction in its home country. ALso, as tax is already deducted at source on the payments made 
to the foreign entity, imposition of an equalisation levy, it is viewed amounts to double taxation. 
? The equalisation levy, is expected to impact the bottom lines of companies such Google, Yahoo, Facebook, 
Twitter and others, unless they deal with Indian business entities via their subsidiaries in India. 
? This tax will impact the online start ups which are mainly dependent on facebook and google for their 
advertisement. 
? Also the proposed ‘Equalisation levy’ is indirect, and it falls upon Indian advertisers to collect the 6% tax 
and deposit it with the government. Hence it is felt that the Googles and the Amazons are simply more 
likely to increase the price of their products or services to recoup the taxed amount. So, basically it will 
harm the Indian companies.  
Centre’s nod for apex corridor development body 
? The Union Cabinet approved the expansion of the mandate of Delhi Mumbai Industrial Corridor Project 
Implementation Trust Fund (DMIC-PITF Trust).  
? It is now re-designated as National Industrial Corridor Development & Implementation Trust (NICDIT) for 
integrated development of all industrial corridors with permission to utilise financial assistance already 
sanctioned and sanction of an additional amount of Rs 1584 crore, up to March 31, 2022. 
 
 
 
? The five industrial corridors at present cover the states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, 
Jharkhand, West Bengal, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, Karnataka, Andhra Pradesh and 
Tamil Nadu.  
? These Five corridors are - Delhi Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor 
(CBIC), Amritsar Kolkata Industrial Corridor (AKIG), Bengaluru- Mumbai Economic Corridor (BMEC) and Vizag-
Chennai Industrial Corridor (VCIC) -- have been planned for development by Government of India. 
? This strategy has been adopted by centre in order to accelerate the growth in manufacturing and for ensuring 
scientifically planned urbanisation.  
About National Industrial Corridor Development & Implementation Trust (NICDIT): 
? NICDIT would be an apex body under the administrative control of DIPP(Department of Industrial Policy & 
Promotion) for coordinated and unified development of all the industrial corridors in the country, will 
channelize  Government of India’s funds as well as institutional funds while ensuring that the various 
corridors are properly planned and implemented keeping in view the broad national perspectives regarding 
industrial and city development, and will support project development activities, appraise, approve and 
sanction projects.  
? It will coordinate all central efforts for the development of industrial corridor projects and will monitor their 
implementation. 
? DMICDC (Delhi Mumbai Industrial Corridor Development Corporation Limited) will function as a knowledge 
partner to NICDIT in respect of all the industrial corridors in addition to its present DMIC work. 
? An Apex Monitoring Authority under the chairpersonship of the Finance Minister will be constituted to 
periodically review the activities of NICDIT and progress of the projects. It will consist of Minister-in-charge of 
Ministry of Commerce & Industry, Minister of Railways, Minister of Road Transport & Highways, Minister of 
Shipping, Vice-Chairman of NITI Aayog and Chief Ministers of States concerned as Members. 
? The Board of Trustees of NICDIT will consist of (i) Chairperson - Secretary, DIPP, (ii) Secretary, Department of 
Expenditure, (iii) Secretary, Department of Economic Affairs, (iv) Secretary, Road Transport & Highways,  (v) 
Secretary, Shipping (vi) Chairman, Railway Board, (vii) CEO, NITI Aayog, and (viii) Member Secretary, who will 
act as full time CEO of NICDIT. CEO, DMICDC will also function as Member Secretary/ CEO of the NICDIT. 
Analysis: 
? The formation of the NICDIT will enable development and implementation of industrial corridor projects 
across India by bringing in holistic planning and development approach and sharing the learning from 
development of industrial corridors, which will enable innovation in areas such as planning, design 
development and funding of such projects. 
? It will help enhance the share of manufacturing in the country, attract investment in manufacturing and 
service industry sectors, which will have a catalytic effect on up-gradation and development of skills of the 
workforce and generation of employment opportunities 
? NICSIT will channelise Government of India funds as well as institutional funds while ensuring that the 
various corridors are properly planned and implemented keeping in view the broad national perspectives 
regarding industrial and city development, and will support project development activities, appraise, 
approve and sanction projects.  
 
 
 
NATIONAL POLITY 
 
The Enemy Property (Amendment and Validation) Fifth Ordinance, 2016 
? The President of India has promulgated the Enemy Property (Amendment and Validation) Fifth Ordinance, 
2016. 
Background: 
? After the Indo-China aggression in 1962, specific properties of Chinese nationals in India were vested in the 
Custodian in terms of Defence of India Rules, 1962.  
? Subsequently, after the Indo-Pak conflict in 1965 & 1971, the movable / immovable properties of Pakistani 
nationals automatically got vested in the Custodian of Enemy Property for India and their vesting was 
continued in the Custodian by the Enemy Property Act, 1968. 
? The Government of Pakistan has disposed of all the properties of Indians impounded by them in Pakistan, 
including in erstwhile East Pakistan. Taking advantage of the interpretations of various judgments passed by 
the courts, claims are being made to regain these properties by the legal heirs and successors of the enemy 
nationals. 
? To prevent the vested properties, the Ordinance for the first time was promulgated on 7th January, 2016. 
? The amendments in the ordinance are aimed at plugging the loopholes in the principal Act to ensure that the 
enemy properties worth thousands of crores of rupees vested in the Custodian do not revert to the enemy, 
enemy subject or enemy firm. 
Amendments through ordinance: 
? This will ensure that the enemy properties that have been vested in the Custodian remain so and they do not 
revert back to the enemy subject or enemy firm. 
? The law of succession does not apply to enemy property. There cannot be transfer of any property vested in 
the Custodian by an enemy or enemy subject or enemy firm and that the Custodian shall preserve the enemy 
property till it is disposed of in accordance with the provisions of the Act. 
? A new section has been inserted to say that “the Custodian, may, after making such inquiry as he deems 
necessary, by order, declare that the property of the enemy or the enemy subject or the enemy firm 
described in the order, vests in him under this Act and issue a certificate to this effect and such certificate 
shall be the evidence of the facts stated therein”. 
Analysis: 
? The main reasons behind the Bill because of the court judgements. There have been various judgments by 
various courts that have adversely affected the powers of the Custodian and the Government of India as 
provided under the Enemy Property Act, 1968. In view of such interpretation by various courts, the 
Custodian is finding it difficult to sustain his actions under the Enemy Property Act, 1968. 
? One such court judgment was passed in the case of the estate of the erstwhile Raja of Mahmudabad, who 
owned several large properties in Hazratganj, Sitapur and Nainital. Following partition, the Raja left for 
Iraq and stayed there for some years before settling in London. His wife and son Mohammed Amir 
Mohammad Khan, however, stayed behind in India as Indian citizens and were active in local politics.After 
The Enemy Property Act was enacted in the year 1968 by the Government of India, the Raja’s estate was 
declared enemy property.When the Raja died, his son staked claim to the properties. After a legal battle 
that lasted over 30 years, an apex court Bench comprising Justice Ashok Bhan and Justice Altamas Kabir on 
October 21, 2005, ruled in favour of the son. 
? The verdict opened the floodgates for further pleas in courts across the country in which genuine or 
purported relatives of persons who had migrated to Pakistan produced deeds of gift claiming they were 
the rightful owners of enemy properties. 
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