📰 Supreme Court sends Delhi power tussle case to larger Bench
The issue is now referred to CJI to be placed before a three-judge Bench
•A Supreme Court Bench of Justices A.K. Sikri and Ashok Bhushan on Thursday gave a split opinion on whether the Delhi government has control over the administration’s services and decided to refer the question to a larger Bench.
•While Justice Bhushan held that the Delhi government has no power over services, observing that Entry 41 of the State List in the Seventh Schedule of the Constitution — dealing with ‘State Public Services’ — was outside the purview of the Delhi Legislative Assembly, Justice Sikri, the lead judge on the Bench, took the middle path.
Files on transfer
•Ruling that files on the transfers and postings of officers in the rank of secretary, head of department and joint secretary could be directly submitted to the Lieutenant Governor (LG), Justice Sikri said that as far as the DANICS (Delhi, Andaman & Nicobar Islands Civil Service) cadre is concerned, the files could be processed through the Council of Ministers led by the Chief Minister before being sent to the LG. Observing that in case of a difference of opinion, the LG prevails, Justice Sikri said there was a need to evolve a “just and fair mechanism”. The situation in Delhi is “peculiar”, he said.
•Justice Sikri also proposed the setting up of Civil Service Boards to take care of service matters in case of grade one, two, three and four officers. The Boards regarding grade four and three officers could be led by the Services Secretary and the other by the Chief Secretary.
•However, one would have to wait for a final decision on this issue, the judge observed.
•Thursday’s judgment on individual appeals followed a verdict by the Constitution Bench on July 4, 2018, wherein the apex court held that the LG was bound by the aid and advice of the Council of Ministers of the National Capital Territory (NCT) government.
•Interestingly, other than the question of services, the two judges agreed on all the other questions raised in separate appeals.
•The court upheld as “legal” the Ministry of Home Affairs’ notifications of May 21, 2015, and July 23, 2015, authorising the LG to exercise powers in relation to services and directing the Anti-Corruption Branch (ACB) police not to take cognisance of offences against Central government officials. The court said the notifications were limited to the officials of the Central Government under the Prevention of Corruption Act and were “perfectly in order”. Thus, the apex court confirmed the Delhi High Court’s finding that the ACB’s jurisdiction is confined to Delhi officials and statutory bodies and does not extend to Central government officials.
•The Supreme Court also confirmed the Delhi HC’s finding that the “appropriate government” under the Commission of Inquiry Act of 1952 is the Centre and not the Delhi government.
•The court was unanimous in its decision that the Delhi government should have taken the views of the LG before issuing the circular dated August 4, 2015, revising minimum rates of agricultural land (circle rules) under the provisions of Indian Stamp Act, 1899, and the Delhi Stamp (Prevention of Undervaluation of Instrument) Rules.
•“The decision cannot be implemented without referring the same to the LG in the first instance. More pertinently, the decision here touches upon the governance of the Union Territory,” the apex court held.
•The judges also concluded that the Delhi government was clothed with the power to issue directions under the Delhi Electricity Reforms Act in “policies of public interest”.
•The Bench endorsed the conclusions of the Constitution Bench that the Delhi government had exclusive executive powers, except under Entries one (public order), two (police) and 18 (land) of the State List. By raising this issue again, the Centre was only trying to “re-argue” the case, the court remarked.
•The court clarified that while the LG was free to form an opinion on any matter, ‘any’ did not mean in every “trifling matter”.
•LG should not intervene routinely but only in matters fundamental to Delhi, which in turn could be escalated till the office of the President. The court also said that the LG should not hold on to files, but instead honour the wisdom of the Cabinet.
•In its July 2018 judgment, the Constitution Bench had urged the LG and the Arvind Kejriwal government to show mature statesmanship in their mutual relationship while coining the expression “collaborative federalism” to define the inter-dependence between the two.
📰 Stress points of democracy
In this election year in India, we need to keep a sharper eye on the weakening of institutions
•These are difficult, as also unsettling, times. It is not the complexity of issues that confront the world as much as the steady undermining of institutional and knowledge structures that are posing a threat to the world.
•Across the world, democracy is in obvious retreat, with authoritarian tendencies on the ascendant. Russia’s Vladimir Putin, China’s Xi Jinping and Turkey’s Recep Tayyip Erdogan are constantly projected as the faces of authoritarianism, but many democratic leaders reveal a similar authoritarian streak, which adds to democracy’s woes. It may be too early to predict the demise of democracy, but the reality is that it is not a good time for democratic institutions, or for those who see democracy as the answer to the world’s problems.
Examples everywhere
•Several examples exist worldwide on how decisions today are handed down, rather than being the outcome of discussion and debate. Hallowed international institutions such as the World Bank are facing the heat today for not conforming to the prescriptions of certain powerful members. At the same time, there are enough examples of democracy going awry. Brexit, and the Brexit debate, in the U.K. and Europe is a good example.
•The U.S., which prides itself as a leading democracy, is setting a bad example today. Under President Donald Trump, arbitrary decision-making has replaced informed debate. His diatribe against what he calls a “ridiculous partisan” investigation against him is an indication. Another is his determination to build a wall to keep out Mexican immigrants, even risking an extended shutdown of the U.S. government. The decision of the U.S. to withdraw from the Intermediate-Range Nuclear Forces Treaty — a key pact signed in 1987, and hailed as the centrepiece of European security since the Cold War — without a detailed internal discussion appears to be setting the stage for Cold War 2.0.
•It is, however, the ignoring of democratic conventions nearer home that are cause for greater concern. In a pluralistic, multi-party federal system, disdain for democratic conventions and the violation of well-entrenched behavioural patterns are causing irreversible damage to the polity.
Federal fallout
•Currently, we are witnessing vituperative exchanges between the Prime Minister and some Chief Ministers which involve accusations such as fomenting riots and running extortion rackets. This damages the fabric of democracy. Centre-State relations are already under strain, and face the threat of still greater disruption.
•Selective interpretation of information is a fallout of such situations. Those in authority deem all information not acceptable to them as nothing but disinformation. Those opposed to the government, on the other hand, insist that the government suffers from a lack of probity. The current sulphurous exchanges between the ruling dispensation and the Opposition over the purchase of Rafale aircraft are an example. The casualty is truth, and the veracity of official facts and statistics.
•Many instances of this kind can be quoted, but one specific instance that has caught the fancy of the public is the current debate on jobs and unemployment. The Central government has effectively rejected a report by the well-regarded National Sample Survey Office — which showed that unemployment in 2017-18 was at a 45-year high — without giving any valid reason for doing so. The government’s only reasoning for rejecting the report is that it is a ‘draft’, which has only added to existing doubts about its real intentions. Similarly, doubts are being raised about the validity of the government’s revised GDP estimates.
•Breaches of democratic conventions are adding to the already existing disquiet. Adherence to democratic norms has for long been perceived as crucial to maintaining the independence of institutions and processes. An impression exists today that attempts are being made to effect changes in the existing system. Two instances during the past year when the government breached long-held conventions have raised questions about the intentions of those in authority.
•One was the brouhaha concerning the Reserve Bank of India (RBI), and a perceived attempt to reduce its functional independence, to compel it to fall in line with the views of the government. The resignation of the RBI Governor put a temporary quietus to these concerns, but it is widely believed that the RBI has been brought into line with the government’s wishes. The second instance relates to the Interim Budget in an election year. The Interim Budget announced on the eve of the 2019 general election clearly breaches certain long-settled conventions, by including many substantial measures that ordinarily would form part of a regular Budget. The intention is plain, viz. build more support for the ruling dispensation in an election year.
•Alongside the decline in democratic conventions, another cause for concern is the virtual collapse of key institutions such as the Central Bureau of Investigation (CBI). Touted as India’s premier investigation agency, its reputation has of late suffered a near mortal blow, mainly on account of internecine quarrels, as also external interference in its internal affairs. Created out of the Delhi Special Police Establishment in 1963, a brainchild of then-Home Minister Lal Bahadur Shastri, the agency was earlier headed by persons with impeccable integrity and ability. It had also adhered previously to the salutary principle of not carrying out arrests, except in the most exceptional of circumstances. Over time, the quality of the CBI leadership and the tribe of proven investigators has witnessed a decline, which has impacted the image of the organisation.
•An agency of the government, part of the Ministry of Personnel functioning under the Prime Minister, supervised at one step removed by the Central Vigilance Commission, and constantly under the watch of the Supreme Court, the CBI serves many masters. The choice of Director, following the Vineet Narain case, by a committee headed by the Prime Minister, with the Chief Justice of India and the Leader of Opposition as the other members, has hardly helped the CBI maintain a reputation for independence. The recent unsavoury drama, which witnessed a ‘Kilkenny cat fight’ between the Director and his No. 2, reflects the lack of institutional culture in the organisation.
•Compounding the situation arising from the lack of trained and competent investigators is the fact that supervisory officers, who come and go, are most often not in a position to provide proper guidance to investigating officers. At times, they also tend to tinker with the investigation reports sent to them, to reject the findings of investigating officers.
A changing work culture
•What is worse is that while earlier the CBI used to carry out arrests of so-called accused persons only as a measure of last resort, today it is overturning this on its head. As its investigating officers’ skills have declined, it is increasingly resorting to peremptory arrests, often on very slender evidence, in anticipation of securing approvers to build, or strengthen, a case. The law generally disapproves of approver evidence, but this has become the stock in trade of the CBI. In many instances, the CBI has also been resorting to pressure tactics while questioning individuals, even when they are not accused persons, setting aside legal niceties and requirements. In a few instances recently, the CBI has even resorted to intimidatory tactics, taking recourse to a battery of investigators to question a witness, let alone an accused, in the hope of securing useful leads. The recent incident where a posse of CBI personnel went to question the Kolkata Police Commissioner at his residence late in the evening, though he was only a witness, reflects the changing mores of the CBI. This should be a matter of concern for one and all.
📰 India signs defence pacts with Germany and Sweden
•India concluded defence cooperation and security protection agreements with Germany and Sweden during the ongoing visit of Defence Minister Nirmala Sitharaman there.
•“The agreement that Nirmala Sitharaman and I signed today is an important step in implementing the action plan on deeper cooperation with India,” Peter Hultqvist, Swedish Minister for Defence said after signing the security protection agreement between the two countries.
Classified information
•The agreement will enable both the countries to share classified information with each other, a Swedish Embassy release said.
•India and Sweden have had a memorandum of understanding on cooperation in the area of defence since 2009.
Germany visit
•Earlier in Germany on February 12 to 13, Ms. Sitharaman met her counterpart Dr. Ursula von der Leyen and signed an implementing arrangement on enhanced defence and defence industry cooperation to strengthen military to military engagement as well as defence industry and research and development linkages.
•Both Germany and Sweden are important suppliers of defence equipment to India and their companies are currently in the race for multi-billion tenders to supply submarines and fighter aircraft.
📰 Wasted effort: half of India’s waste-to-energy plants defunct
Unsegregated rubbish makes plants inefficient
•Nearly half of India’s waste-to-energy (WTE) plants, meant to convert non-biodegradable waste, are defunct. Further, the country’s inability to segregate waste has resulted in even the existing plants working below capacity, says an analysis by the Centre for Science and Environment.
•Since 1987, 15 WTE plants have been set up across the country. However, seven of these plants have since shut down.
•Apart from Delhi, these include plants at Kanpur, Bengaluru, Hyderabad, Lucknow, Vijayawada and Karimnagar.
•The key reasons for closure are the plants’ inability to handle mixed solid waste and the high cost of electricity generated by them that renders it unattractive to power companies.
•This track record, however, has not stopped the government from betting big on WTE. The NITI Aayog, as part of the Swachh Bharat Mission, envisages 800 megawatt from WTE plants by 2018-19, which is 10 times the capacity of all the existing WTE plants put together.
•It also proposes setting up a Waste-to-Energy Corporation of India, which would construct incineration plants through PPP models. Currently, there are 40-odd WTE plants at various stages of construction.
•“The fundamental reason (for the inefficiency of these plants) is the quality and composition of waste. MSW (municipal solid waste) in India has low calorific value and high moisture content. As most wastes sent to the WTE plants are unsegregated, they also have high inert content. These wastes are just not suitable for burning in these plants. To burn them, additional fuel is required which makes these plants expensive to run,” said Swati Singh Sambyal, author of the report and researcher on waste management, at the CSE.
•About 1.43 lakh tonnes per day of (TPD) municipal solid waste (MSW) is generated across the country. Of this, 1.11 lakh TPD (77.6%) is collected and 35,602 TPD (24.8%) processed.
•In addition India generates close to 25,940 TPD of plastic waste of which 15,342 remains uncollected, according to the Central Pollution Control Board.
•As per the Union Ministry of Environment and Forests, MSW generation will reach 4.5 lakh TPD by 2031 and 11.9 lakh TPD by 2050.
•The WTEs have also triggered widespread opprobrium among citizens. For instance, there has been a continuous protest against the Okhla WTE plant for polluting the environment.
•In 2016, the National Green Tribunal (NGT) slapped environmental compensation fine of ₹25 lakh on the plant.
•Moreover, the plants are expensive because they produce power at nearly ₹7 per unit, which is more than the ₹3-5 offered by thermal as well as solar sources.
📰 Panel moots minimum wage of ₹375 per day
‘Different wages for different regions’
•An expert panel has recommended that a need-based national minimum wage for workers across the country be set at ₹375 per day, or ₹9,750 per month.
•In a report submitted to the Ministry of Labour and Employment on Thursday, an Expert Committee on Determining the Methodology for Fixation of the National Minimum Wage has also recommended different national minimum wages for “different geographical regions of the country to suit the local realities and as per socio-economic and labour market contexts.”
•These regional wage recommendations range from ₹342 per day in some States including Bihar, Uttar Pradesh and West Bengal to ₹447/day for States such as Delhi, Goa, Haryana, Himachal Pradesh and Punjab.
Different wages
•While the Minimum Wages Act was enacted in 1948, it stipulates different wages according to occupation and State; there is no national minimum wage. In 2016, then Finance Minister Arun Jaitley hiked minimum wages for unskilled non-agricultural workers by 42% to ₹350 per day.
•The Code on Wages Bill, 2017, had proposed a national minimum wage and five regional minimum wages. However, it was referred to a parliamentary standing committee which, in its December 2018 report, said State governments must be consulted before any national minimum wage is set by the Centre.
📰 Low velocity of cash circulation in large States hints at sluggish economy: report
‘Higher denomination notes are not getting adequately circulated’
•While the currency in circulation has surpassed what it was in the pre-demonetisation days, it is still short of what it should have been and the lower velocity of circulation in larger States points to sluggish economic activity, says a report by the State Bank of India.
•Currency in circulation has gone up to ₹20.6 lakh crore as on February 1. It was ₹17.97 lakh crore a week before 86% of the currency was rendered invalid on November 9, 2016. “Our current estimates suggest that CIC [currency in circulation] is still short of trend by at least ₹1.5 lakh crore. Thus, any argument of cash coming back aggressively into the system and financing informal activities is not entirely correct,” said the report authored by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
•It estimates bank notes in circulation by March 2019 ought to have been at ₹22.45 lakh crore, but given the present trend of growth, it is expected to reach only ₹20.9 lakh crore by then. It further said with income velocity of money having shown a ‘sharp plunge’, it possibly implies that currency of higher denomination (₹2,000) is not getting adequately circulated in the economy. “We are in a state of paradox as higher CIC cannot be taken as a proxy of economic activity as is being claimed,” it said.
•It added that in larger States like Maharashtra, U.P., and Karnataka, income velocity is far lesser than the national average, while in States like Chhattisgarh, M.P., A.P. and J&K, the velocity is much higher than the average. “A declining income velocity of money clearly suggests that a pick-up in economic activity remains elusive. Rural economy still remains depressed, with latest inflation numbers suggesting any meaningful pick-up in food inflation is still at a distance,” it added.
