Current Affairs Reverse Engineering – Care (23-12-2024)
| News at a Glance |
| Social Issues: On the plight of the Indian worker |
| International Relations: India, Kuwait boost ties: Strategic partnership, key pact on defence |
| Trump threatens to ‘demand the return’ of Panama Canal: What is its history, significance? |
| China’s Syria bet fails: what lessons some Chinese want Beijing to learn |
| Polity and Governance: As key cases fall in courts, ED to staff: No PMLA on basis of conspiracy alone |
On the plight of the Indian worker
Source: The Hindu
https://www.thehindu.com/opinion/editorial/%E2%80%8Baway-from-home/article69015954.ece
UPSC Syllabus Relevance: GS1 Social Issues
Context: Labour Exploitation of Indian Workers Abroad
Why in News
The exploitation of Indian workers abroad, as highlighted by the case of 16 workers trafficked to Libya, reflects gaps in migration governance and the urgent need for comprehensive safeguards.
Overview
- The plight of 16 Indian workers allegedly trafficked to Libya for inhumane labour conditions highlights the persistent vulnerabilities faced by Indian migrant workers, especially in the Gulf and conflict-ridden regions.
- This issue is emblematic of broader challenges related to labour migration, exploitation, and inadequate protections for Indian workers abroad.
Key Issues
- Human Trafficking and Labour Exploitation
- Workers travelled to the UAE for employment but were coerced into working in Benghazi, Libya, under harsh conditions.
- Such incidents reflect gaps in oversight and enforcement of recruitment and migration policies.
- Unsafe Working and Living Conditions
- Cases like the fire in a labour camp in Kuwait (June 2024) highlight unsafe living conditions.
- The kafala system prevalent in Gulf countries reinforces dependency, restricts mobility, and facilitates exploitation.
- Significance of Indian Migrant Workers
- Approximately 13 million Indian nationals reside abroad, with the majority in Gulf countries.
- Indian workers contribute significantly to the economy through remittances ($111 billion in 2022), yet their personal economic gains remain limited due to recruitment fees, debts, and exploitative practices.
- Policy and Governance Gaps
- Existing mechanisms, such as the e-Migrate system and Emigration Clearance Requirements (ECR), are often bypassed by international networks of labour contractors and agents.
- Protections do not cover non-ECR countries like Israel and Russia, where workers face risks, including deaths in conflict zones.
Migration Statistics and Trends
Global Migration
- International Migrants: There were 281 million international migrants globally in 2020, with nearly two-thirds being labour migrants.
- Labour Migration: The number of labour migrants decreased from 169 million in 2019 to 164 million in 2020.
- South Asia’s Role: South Asia accounts for nearly 40% of the global migrant pool, with the South Asia-Gulf Migratory Corridor being the largest migration corridor in the world.
Migration Drivers
- Economic and Social Factors: Long-term data shows migration is influenced by economic, geographic, demographic, and social factors, leading to the development of distinct migration patterns over time.
- Contemporary Triggers:
- COVID-19 pandemic: Infectious disease outbreaks disrupted economies and livelihoods.
- Political Instability: Taliban takeover in Afghanistan and Russia’s invasion of Ukraine.
- Poverty and Climate Change: Worsening poverty in sub-Saharan Africa and climate change impacts drive displacement and migration.
India’s Migration Landscape
- Indian Migrants in GCC Countries
- Approximately 9 million Indian migrants currently work in GCC countries.
- Impact of the Pandemic
- Kerala government data shows 1.7 million Keralites returned from abroad during June 2020-June 2021, with 1.5 million job losses.
- Wage theft cases during COVID-19 highlight ₹62.58 crore denied to 397 Indian returnees.
- Exploitation via Kafala System
- The Kafala system, prevalent in GCC countries, ties workers to employers, often leading to mass retrenchments and exploitative conditions.
- Recent Cases of Trafficking
- Indian engineers trafficked to Myanmar for crypto scams.
- Indian nurses lured to the UAE with fake job offers.
Regulatory Framework in India
Emigration Act, 1983
- Governs emigration of Indian workers for contractual overseas employment.
- Key Provisions:
- Mandates registration of recruiting agents and employers with the Protector General of Emigrants, Ministry of External Affairs (MEA).
- Imposes ceilings on service fees charged to workers.
- Reviews travel documents to curb illegal emigration.
Draft National Policy on Migrant Workers
- Proposed by NITI Aayog, the policy aims to promote a rights-based approach to protect migrant workers.
- Recommends establishing migration resource centers in high-migration areas to assist migrants.
Government Initiatives
- Regulatory Measures
- Introduction of the e-Migrate system to monitor recruitment and migration to 18 ECR countries.
- Efforts to engage with host countries, such as during PM Modi’s recent visit to Kuwait.
- Emergency Interventions
- Indian missions provide food, supplies, and repatriation assistance in crisis situations like Libya.
- Engagement Platforms
- Pravasi Bharatiya Sammelan and similar events celebrate diaspora contributions but need to focus more on addressing their challenges.
Suggestions for Improvement
- Policy Reforms
- Reform India’s Emigration Act to address contemporary migration issues and strengthen enforcement mechanisms.
- Stricter monitoring of recruitment agents to prevent exploitation.
- Mandating higher compensation guarantees from foreign employers for worker welfare.
- Diplomatic Efforts
- Engaging host countries to advocate for better legal and social protections, particularly regarding the kafala system.
- Ensuring bilateral agreements include provisions for worker safety and compensation.
- Domestic Economic Growth
- Creating sustainable and inclusive economic opportunities in India to reduce migration driven by economic desperation.
- Institutional Support
- Establishing a robust grievance redressal mechanism for Indian workers abroad.
- Enhancing skill development and awareness programs for prospective migrants.
- Strengthening Diaspora Engagement
- Expanding the scope of platforms like Pravasi Bharatiya Sammelan to focus on workers’ issues and challenges.
- Celebrating achievements of the diaspora should not overshadow the struggles of vulnerable segments.
Way Forward
- The exploitation of Indian workers abroad underscores the need for a multi-pronged approach that balances economic ambitions with human rights protections.
- India must leverage its diplomatic clout and domestic policy frameworks to ensure a safe and equitable migration experience for its workers.
- Only through such measures can the country truly integrate its diaspora into its growth narrative, while addressing the stark realities they face.
- This issue not only concerns economic migration but also tests India’s commitment to safeguarding its citizens on a global stage.
| CARE MCQ | UPSC PYQ |
| Q1. With reference to the challenges faced by Indian migrant workers abroad, consider the following statements:
1. The kafala system, prevalent in Gulf countries, restricts the mobility and legal rights of workers. 2. The e-Migrate system is applicable to all countries where Indian workers migrate for employment. 3. Remittances by Indian workers contribute significantly to the Indian economy. Which of the statements given above is/are correct? |
Q. Consider the following statements:
Which of the statements given above are correct? (a) 1 and 3 only (b) 2, 3 and 4 only (c) 2 and 4 only (d) 1, 2, 3 and 4 Ans: C |
| Answer – 1 – B
Explanation –
|
India, Kuwait boost ties: Strategic partnership, key pact on defence
Source: Indian Express
UPSC Relevance: GS2 International Relations
Context: India-Kuwait Relations
Why in News
India and Kuwait elevated their bilateral relations to a “strategic partnership,” focusing on trade, defence, and cultural cooperation during Prime Minister Modi’s historic visit to Kuwait in 2024.
India-Kuwait Relations Elevated to Strategic Partnership
- Prime Minister recent two-day visit to Kuwait marked a historic moment in India-Kuwait relations.
- This visit, the first by an Indian Prime Minister in 43 years, elevated the bilateral relationship to a “strategic partnership,” focusing on enhanced cooperation in trade, defence, energy, and other sectors.
Key Highlights
- Historical Significance:
- Last visit by an Indian Prime Minister to Kuwait was by Indira Gandhi in 1981.
- This visit symbolizes renewed momentum in bilateral ties and recognition of Kuwait’s role as a key partner in the Gulf region.
- Conferment of Kuwait’s Highest Honour:
- Prime Minister Modi was awarded ‘The Order of Mubarak Al-Kabeer’ by Kuwait’s Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah for his role in strengthening bilateral relations.
- Modi dedicated this honour to the people of India and India-Kuwait friendship.
Strategic Partnership and Areas of Cooperation
- Institutionalisation of Defence Cooperation:
- The two nations signed an overarching defence cooperation agreement covering:
- Training of personnel.
- Joint exercises and expert exchanges.
- Supply of defence equipment.
- Collaboration in research and development.
- The two nations signed an overarching defence cooperation agreement covering:
- Memoranda of Understanding (MoUs):
- Solar Energy: To promote sustainable energy cooperation.
- Sports: Enhancing people-to-people ties.
- Cultural Exchange: Strengthening cultural bonds between the two nations.
- Trade and Investment:
- Bilateral trade between India and Kuwait stood at USD 10.47 billion in 2023-24.
- Modi invited the Kuwaiti Investment Authority and other stakeholders to explore investment opportunities in India’s sectors like energy, defence, pharma, and food parks.
- Both sides stressed the importance of concluding the India-GCC Free Trade Agreement (FTA) to boost trade ties.
- Cooperation with the Gulf Cooperation Council (GCC):
- Kuwait currently holds the presidency of the GCC, which includes countries like Saudi Arabia, UAE, Oman, Qatar, and Bahrain.
- India expressed keen interest in intensifying cooperation with the GCC, which had a trade volume of USD 184.46 billion with India in 2022-23.
- Support for Kuwaiti Vision 2035:
- India offered collaboration to assist Kuwait in achieving its developmental blueprint, Vision 2035, aimed at diversifying its economy.
Acknowledgement of the Indian Diaspora
- The Indian community is the largest expatriate group in Kuwait, numbering over 1 million.
- Modi thanked the Kuwaiti leadership for ensuring the welfare of Indian workers.
- The Amir acknowledged the vital contribution of the Indian community to Kuwait’s development.
Geopolitical Discussions
- West Asia Stability:
- Both sides discussed shared interests in peace, security, and prosperity in West Asia.
- They condemned terrorism in all forms and called for dismantling terror financing networks and safe havens.
- Regional Cooperation:
- India and Kuwait committed to regular bilateral consultations and multilateral collaboration, particularly through UN platforms.
Outcomes and Future Prospects
- Strengthening Bilateral Relations:
- The strategic partnership signifies greater engagement in key areas, including defence, energy, technology, and infrastructure.
- Enhanced Regional Role:
- India’s cooperation with Kuwait aligns with its broader Gulf strategy, ensuring its influence in a region critical for trade, energy, and geopolitics.
- People-to-People Ties:
- Increased collaboration in culture, sports, and education will further cement relations between the two nations.
- Global Stability:
- By emphasizing peace and security in West Asia, the two nations aim to contribute to regional and global stability.
Conclusion
- Prime Minister visit to Kuwait marked a significant milestone in bilateral relations. The elevation of ties to a “strategic partnership” demonstrates mutual intent to deepen cooperation across multiple domains.
- The focus on trade, defence, and people-to-people connections will undoubtedly benefit both nations and enhance India’s role in the Gulf region.
- As the partnership grows, it holds promise for regional stability, economic progress, and stronger cultural bonds.
| CARE MCQ | UPSC PYQ |
| Q2 Consider the following statements regarding the strategic partnership between India and Kuwait:
1. The strategic partnership between India and Kuwait includes cooperation in the fields of pharmaceuticals, IT, and infrastructure. 2. The strategic partnership agreement includes a focus on renewable energy, with a particular emphasis on solar energy. Which of the above statements is/are correct? a) 1 only
|
Q. Consider the following statements 2022
Which of the statements given above are correct? A 2 and 4 only B 3 and 5 only C 1, 3 and 4 only D 1 and 2 only Ans: C |
| Answer 2– C
Explanation –
|
Trump threatens to ‘demand the return’ of Panama Canal: What is its history, significance?
Source: Indian Express
UPSC Relevance: GS2 International Relations
Context: Panama Canal and Its Significance for the US
Why in News
Former U.S. President Donald Trump recently criticized Panama for overcharging U.S. ships using the Panama Canal.
Introduction to the Panama Canal
- The Panama Canal is a man-made waterway that connects the Atlantic Ocean to the Pacific Ocean across the Isthmus of Panama.
- The canal was originally constructed to shorten the maritime journey between the two oceans, as traveling around the southern tip of South America was both time-consuming and costly.
- The construction of the Panama Canal was completed between 1904 and 1914, and it has been a critical global shipping route ever since.
Historical Context: US Role in Panama Canal’s Construction
- The idea of constructing a canal across Panama was first proposed in the early 16th century, but due to geographical challenges, it was only during the early 20th century that it became a practical project.
- The canal was initially proposed by the French, but their efforts were halted due to financial problems and engineering challenges.
- The United States’ involvement in the canal’s construction began in the early 1900s under President Theodore Roosevelt.
- The U.S. took over the canal project after France abandoned it. Roosevelt saw the canal as vital for U.S. military and commercial interests, and he backed the construction of the canal.
- In 1903, Panama was part of Colombia, but with U.S. backing, Panama declared independence. The U.S. then signed the Hay-Bunau-Varilla Treaty with Panama, which gave the U.S. control over the canal zone, allowing them to build and operate the canal.
- The construction of the canal was a monumental engineering feat, requiring a complex system of locks to lift ships from sea level to the level of Gatun Lake.
- This system of locks has remained the key to the canal’s function, allowing ships to pass through the canal despite the varying elevation.
Economic and Strategic Importance of the Panama Canal
- The canal was essential for global trade, especially for the United States. By connecting the Atlantic and Pacific Oceans, it significantly reduced the time and cost of shipping goods between the east and west coasts of the U.S.
- As of today, around 6% of global trade (by value) passes through the Panama Canal, making it a strategic asset for world trade.
- From a military perspective, the U.S. saw the canal as an essential tool for its navy, allowing quicker movement between the Atlantic and Pacific fleets.
- For many years, the U.S. maintained a heavy military presence in the canal zone to safeguard its strategic interests.
Controversy Over Control: The Handover to Panama
- For much of the 20th century, the U.S. maintained control over the Panama Canal and the Panama Canal Zone, which sparked tensions with the Panamanian population. Protests and riots occurred, especially over the perceived unfair terms of the 1903 treaty.
- Many Panamanians felt that the U.S. had unfairly taken control of the canal and its surrounding region.
- In the 1970s, U.S. President Jimmy Carter shifted his position on the Panama Canal. Initially, Carter had opposed a treaty, but after his election in 1976, he signed the Torrijos-Carter Treaties with Panama.
- These treaties stipulated that the U.S. would hand over control of the canal to Panama by December 31, 1999.
- This was a significant concession to Panama, but the treaties also allowed the U.S. to intervene militarily if the neutrality of the canal was threatened.
Trump’s Accusations and Remarks
- Fast forward to 2024, former U.S. President Donald Trump made headlines by accusing Panama of charging the U.S. excessively for using the Panama Canal.
- Trump claimed that this was a “rip-off” and threatened a U.S. takeover of the canal if Panama did not comply with U.S. demands.
- His comments were made via the social media platform Truth Social, where he highlighted the U.S.’s “extraordinary generosity” in handing over the canal to Panama and stated that if Panama didn’t follow through on the agreement, the canal should be returned to the U.S.
- Trump’s remarks are based on his belief that the U.S. was overly generous when it gave away control of the canal to Panama in 1999.
- He also mentioned that the canal should not be managed by China, possibly referring to China’s growing influence in the region, which Trump sees as contrary to U.S. interests.
US Interests and Panama Canal’s Current Situation
- Trump’s remarks also touch upon a growing concern regarding China’s involvement in Panama. China has been heavily involved in infrastructure projects around the Panama Canal, particularly through its Belt and Road Initiative (BRI).
- This initiative is aimed at expanding China’s influence globally by financing infrastructure projects in various countries. In Panama, Chinese companies have been involved in construction, logistics, and energy projects near the canal.
- Trump’s mention of China’s role likely refers to this increasing Chinese presence in what the U.S. traditionally considered its sphere of influence.
- Despite the political tensions, the canal’s economic significance remains paramount. The Canal Authority of Panama (ACP) now manages the canal, and the U.S. still uses it extensively for trade and military purposes.
- However, its strategic value to the U.S. has diminished since the canal’s turnover, with other routes and technological advancements (such as larger ships) reducing its monopoly on global trade routes.
Conclusion:
- The Panama Canal remains a critical strategic asset, though its political and economic role has evolved.
- For the U.S., the canal’s primary importance lies in its function as a major global trade route and its significance in military mobility. While the U.S. no longer controls the canal, it continues to influence and rely on it through strategic partnerships, trade agreements, and regional security concerns.
- As seen with Trump’s remarks, there is still a nationalistic sentiment regarding the canal and its management, especially with the growing presence of countries like China in the region.
- In summary, the Panama Canal is not just an engineering marvel but also a symbol of S. influence in the Western Hemisphere, and its management remains a subject of political and economic discourse.
| CARE MCQ | UPSC PYQ |
| Q3. With reference to the Panama Canal and its historical significance, consider the following statements:
1. The Panama Canal was transferred from U.S. control to Panama in 1999 under the Torrijos-Carter Treaties. 2. The U.S. still controls the Panama Canal under the terms of the 1903 Hay-Bunau-Varilla Treaty. 3. The Panama Canal significantly reduced the travel time between the Atlantic and Pacific Oceans, promoting global trade. 4. The U.S. is currently in control of the Panama Canal Zone as per the recent agreements. Which of the above statements are correct? (a) 1, 3, and 4 only (b) 1 and 3 only (c) 2 and 4 only (d) 3 and 4 only |
Q. Which one of the following statements best reflects the issue with Senkaku Islands, sometimes mentioned in the news? 2022
A It is generally believed that they are artificial islands made by a country around South China Sea. B China and Japan engage in maritime disputes over these islands in East China Sea. C A permanent American military base has been set up there to help Taiwan to increase its defence capabilities. D Though International Court of Justice declared them as no man’s land, some South-East Asian countries claim them.
|
| Answer 3– B
Explanation –
|
China’s Syria bet fails: what lessons some Chinese want Beijing to learn
Source: Indian Express
UPSC Syllabus Relevance: GS2 International Relations
Context: China’s Middle Eastern strategy
Why in News
The fall of Bashar al-Assad’s regime in Syria has significant repercussions for China’s Middle Eastern strategy, which had focused on cultivating Damascus as an ally.
Background
- China has long sought to expand its influence in the Middle East, driven by its strategic, economic, and energy needs.
- China supported Assad diplomatically during the Syrian Civil War and invested heavily in Syria’s oil and gas sectors, with investments totaling around $3 billion by 2017. China also signed a strategic partnership with Syria in 2022.
- The fall of Assad’s regime in 2024 exposed China’s over-reliance on Russia and Iran, both of which also failed to stabilize Syria.
- This caused criticism of China’s Middle Eastern policy, especially on social media, where many questioned Beijing’s focus on Syria instead of core interests like Taiwan and the South China Sea.
- In the aftermath, Chinese analysts are calling for a reevaluation of China’s Middle Eastern strategy, urging a more pragmatic approach focused on China’s primary interests rather than overextending in distant geopolitical conflicts.
China’s Investments and Diplomacy in Syria
- Financial Investments and Strategic Importance:
China made substantial investments in Syria, particularly after the Syrian government regained control over Aleppo in 2016. Its financial aid surged from $500,000 to $54 million in just one year, with a total of $3 billion invested in Syrian oil and gas. China also played a key role in supporting Syria diplomatically, shielding the Assad regime from international sanctions and criticism, particularly in the United Nations. - Strategic Interests in the Middle East:
China’s engagement with Syria was part of its broader strategy to expand influence in the Middle East. Syria’s alignment with the Belt and Road Initiative (BRI) further solidified China’s presence in the region. The Chinese government viewed Assad’s regime as a partner in advancing its regional ambitions, especially in contrast to the U.S. and Western powers, which had supported opposition forces. - Alliance with Iran and Russia:
China’s strategy in the Middle East heavily relied on its partnerships with Iran and Russia, both of which played pivotal roles in propping up the Assad government. This alignment, however, proved problematic as both countries were unable to prevent the eventual destabilization of Syria and Assad’s regime. The fall of Assad, despite these alliances, has raised doubts about the reliability of these partnerships in the region.
Criticism and Fallout in China
- Public Backlash:
The failure of China’s bet on Assad has led to growing criticism on Chinese social media, particularly from netizens who feel that China’s resources and diplomatic efforts in Syria could have been better utilized elsewhere, such as in the Taiwan Strait or the South China Sea—regions of critical national interest. This marks a shift in public sentiment from initial optimism to disappointment, with many questioning China’s foreign policy choices. - Diplomatic Missteps:
Chinese scholars and foreign affairs experts are now rethinking the wisdom of Beijing’s Middle Eastern investments, especially in light of the failure to secure a stable foothold in Syria. The notion of “historical” achievements, like the diplomatic breakthroughs between Saudi Arabia and Iran brokered by China, has also been met with skepticism. These efforts, despite their initial success, have not delivered lasting stability in the region, further undermining China’s diplomatic credibility. - Reevaluating Diplomatic Alliances:
Analysts within China are starting to reevaluate Beijing’s over-reliance on Russia and Iran, especially in the context of their failure to stabilize Syria. The lesson being drawn is that China’s Middle Eastern policies need to be more balanced, and the country must consider diversifying its alliances rather than placing so much trust in powers whose interests may diverge from China’s own strategic goals.
Implications for China’s Foreign Policy
- Lesson in Diplomacy:
The collapse of the Assad regime illustrates the limitations of China’s foreign policy in the Middle East. It underscores the importance of pragmatic, flexible diplomacy and the risks of over-reliance on partners that may not have the capacity or willingness to uphold their commitments. - Shift in Strategy:
China’s policymakers are now calling for a “deep thinking” approach and are reconsidering their strategies in the region. There is an emerging view that China should focus more on strengthening its position in East Asia and the Indo-Pacific, where its core interests lie, instead of investing heavily in unstable regions like the Middle East. - Future Directions:
Moving forward, China is likely to adopt a more cautious approach in the Middle East, focusing on economic and trade relations rather than political or military interventions. It may seek to maintain a more neutral stance in regional conflicts, emphasizing cooperation over confrontation.
Conclusion
In conclusion, the fall of Bashar al-Assad’s regime has been a major setback for China’s foreign policy in the Middle East. It has prompted a re-evaluation of China’s diplomatic strategies and alliances, particularly with Iran and Russia. The shift in public opinion and the lessons learned from this experience are likely to influence China’s future approach to international relations, especially in regions that are less aligned with its core national interests.
| CARE MCQ | UPSC PYQ |
Q4. Consider the following statements:
Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2
|
Q. With reference to the Trans-Pacific Partnership’, consider the following statements : 2016
Which of the statements given above is/are correct? A 1 only B 2 only C Both 1 and 2 D Neither 1 nor 2 Ans: D
|
| Answer 4- B
Explanation
|
As key cases fall in courts, ED to staff: No PMLA on basis of conspiracy alone
Source: The Hindu
UPSC Relevance: GS2 Polity and Governance
Context: 13th National Seed Congress (NSC)
Why in News
Researchers unveiled the most comprehensive assessment of the status of the two African elephant species – the savanna elephant and forest elephant
Overview
- The Enforcement Directorate (ED) has been involved in investigating cases related to money laundering, often in high-profile matters involving political figures and corruption. The ED uses the Prevention of Money Laundering Act (PMLA) to initiate investigations into money laundering.
- However, a recent string of setbacks in court, particularly related to the use of “criminal conspiracy” (Section 120B of the Indian Penal Code or IPC) as the predicate offence for initiating PMLA cases, has led to a significant shift in the agency’s approach.
Predicate Offence Concept
- In the context of the PMLA, the concept of a “predicate offence” refers to a primary crime that needs to be established by an investigating agency before the ED can proceed with a money laundering case.
- Essentially, the ED cannot take action under PMLA unless there is an FIR (First Information Report) for a crime already registered by another agency like the CBI, state police, or Income Tax department.
- For example, if someone is accused of corruption, the CBI might file an FIR for that corruption, and the ED can then investigate whether that corruption led to money laundering.
Supreme Court Rulings Impacting ED’s Strategy
- Recently, the Supreme Court of India delivered rulings that have had a significant impact on how the ED can use the IPC Section 120B (criminal conspiracy) as the sole predicate offence under PMLA.
- Section 120B of the IPC refers to a criminal conspiracy where individuals are involved in planning or executing a crime.
- The Supreme Court’s ruling in November 2023 involved a case where the ED had invoked PMLA solely based on criminal conspiracy charges (Section 120B).
- The Court ruled that criminal conspiracy alone could not be the predicate offence unless it was linked to an offence specifically included in the PMLA’s schedule (list of offences).
- In other words, the conspiracy must involve a scheduled offence like corruption, tax evasion, or a violation of specific laws like the Wild Life Act, which are included in the PMLA’s schedule of primary offences.
- This ruling made it clear that without a related offence listed in the PMLA’s schedule, criminal conspiracy under Section 120B could not be used alone as the basis for invoking PMLA.
- This essentially means that the ED would have to find additional grounds to support its money laundering charges.
Recent Setbacks for ED
- Following these legal rulings, the ED faced setbacks in several high-profile cases, including one against Congress leader K. Shivakumar.
- The case involved money laundering linked to alleged tax evasion.
- The Supreme Court ruled that the ED could not base its case purely on the criminal conspiracy charges under Section 120B, as it lacked the necessary scheduled offence.
- Similarly, the Supreme Court quashed another case involving a liquor scam in Chhattisgarh for the same reasons.
ED’s Response and New Strategy
- In response to these legal challenges and setbacks, the ED has decided to revise its strategy. The agency has now decided not to rely solely on criminal conspiracy as the basis for initiating cases under PMLA.
- Instead, the ED will now include a specific offence under the PMLA schedule related to the conspiracy. This change has been instructed by ED Director Rahul Navin to the agency’s officers.
- This shift is aimed at ensuring that the ED’s cases are more robust legally and can withstand challenges in court.
- The PMLA schedule contains around 150 primary offences, ranging from corruption to tax evasion to environmental violations, and the ED now intends to ensure that any case it registers has a direct link to one of these offences.
Case Example – Amnesty International
- In a separate case, the ED had invoked PMLA against Amnesty International for alleged money laundering.
- The basis for the investigation was a CBI FIR that accused Amnesty of violating the Foreign Contribution Regulation Act (FCRA), but FCRA violations are not included in the PMLA schedule.
- The ED initially used criminal conspiracy as the predicate offence. However, this approach was problematic due to the absence of a scheduled offence. Now, the ED needs to establish a link to a scheduled offence to continue pursuing the case under PMLA.
Conclusion
- The ED’s decision to incorporate additional offences from the PMLA schedule alongside criminal conspiracy is a crucial step to ensure the validity of its investigations and to avoid future setbacks in court.
- This adjustment reflects the agency’s adaptation to the evolving legal landscape, where the courts have increasingly scrutinized the use of the PMLA in cases based solely on Section 120B.
- The revised approach aims to make the ED’s cases more legally sound and ensures that it can continue to target money laundering effectively while complying with judicial rulings.
- Additionally, this shift may also impact future high-profile money laundering cases, particularly those involving political figures, as the ED aligns its strategy with the legal precedents set by the Supreme Court.
| CARE MCQ | |
| Q5. Consider the following statements regarding the Enforcement Directorate’s (ED) recent change in approach towards the Prevention of Money Laundering Act (PMLA):
1. The ED has decided to no longer rely solely on Section 120B of the IPC (criminal conspiracy) as the “predicate offence” for invoking PMLA. Which of the statements given above are correct? a) 1 and 2 only |
Q. With reference to Scheduled Areas in India, consider the following statements: 2023
1. Within a State, the notification of an area as Scheduled Area takes place through an Order of the President. 2. The largest administrative unit forming the Scheduled Area is the District and the lowest is the cluster of villages in the Block. 3. The Chief Ministers of the concerned States are required to submit annual reports to the Union Home Ministry on the administration of Scheduled Areas in the States. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct answer: b
|
| Answer 5- C
Explanation
|