Explained: SC Verdict on Abrogation of Article 370
Context
On Monday, a unanimous decision by a Constitution Bench of the Supreme Court affirmed the President’s authority to revoke Article 370 in August 2019, leading to the reorganization of Jammu and Kashmir into two Union Territories and stripping it of its special privileges.
Key Issues and Court’s Findings
On the Sovereignty of Jammu and Kashmir:
- Petitioners’ Claim: The petitioners argued that Jammu and Kashmir retained a distinct sovereignty upon acceding to India in 1947, distinct from other princely states.
- Court’s Examination: The Court observed that Jammu and Kashmir was designated as a Part III state in the Indian Constitution, and Section 3 of Jammu and Kashmir’s Constitution declared it an integral part of India.
- Final Ruling: The Court concluded that Jammu and Kashmir did not retain sovereignty, emphasizing the ongoing process of integration, culminating in the Presidential declaration under Article 370(3).
Whether Article 370 is Temporary or Permanent:
- Arguments Presented: Petitioners advocated for the permanence of Article 370, while others considered it temporary.
- Court’s Opinion: Chief Justice Chandrachud and Justice Kaul concurred that Article 370 was a temporary provision.
Legality of Abrogating Article 370:
- Abrogation Process: On August 5, 2019, President Ram Nath Kovind issued CO 272, amending Article 367 and redefining the “Constituent Assembly of Jammu and Kashmir” as the “Legislative Assembly of Jammu and Kashmir.”
- Court’s Upholding: The Court upheld this process, with Chief Justice Chandrachud asserting that post-dissolution of Jammu and Kashmir’s Constituent Assembly, the President could unilaterally revoke Article 370.
Actions Under President’s Rule:
Challenge to Union’s Actions: The challenge pertained to the extent of powers exercised under Article 356 (President’s rule).
Reference to Bommai Ruling: Citing the 1994 Bommai ruling, the Court emphasized that actions under President’s rule must not be mala fide or irrational.
Upholding Centre’s (Union) Supremacy
Parliament’s Unilateral Actions: The Court’s interpretation implies that Parliament can alter a state’s status under President’s rule.
Article 3 Reference: The President referred the Jammu and Kashmir Reorganisation Bill, 2019, to Parliament for its views, given the state’s President’s rule.
Validity of Executive Orders: The Court applied Bommai ruling standards to validate executive orders, stressing the need for proof of mala fides to challenge the actions.
Conclusion
J&K’s Integral Status Affirmed: The Court definitively affirmed that Jammu and Kashmir has always been an integral part of India.
Temporary Nature of Article 370: The ruling clarifies that Article 370 was a temporary provision.
Expansion of Union Powers: The judgment potentially broadens the Union’s powers under President’s rule, impacting the federal balance.
Constitutional Precedent: This ruling establishes a significant precedent in interpreting Union and state powers, influencing the dynamics of Indian federalism.
Financial Stability Board’s Report on Crypto-Asset Intermediaries
Context:
The Financial Stability Board (FSB) has released a report addressing the regulation of multi-function crypto-asset intermediaries (MCIs) and the necessity for improved cross-border cooperation.
The report particularly highlights the risks associated with MCIs combining various activities on their platforms, citing the FTX collapse in November 2022 as an illustrative example.
Exploration of Multi-Function Crypto-Asset Intermediaries (MCIs)
- MCIs are entities or affiliated groups that provide a variety of crypto-based services and functions, primarily operating trading platforms.
- Prominent examples of MCIs include Binance, Bitfinex, and Coinbase. In contrast to traditional finance, where such functions are typically segregated to avoid conflicts of interest, MCIs integrate various services.
- Revenue Generation for MCIs primarily stems from transaction fees related to trading activities, including self-issued crypto assets.
- Additionally, they offer ancillary services such as prepaid debit cards and lending.
Recent Amendments and Consequences
- The amendment to the Foreigners (Tribunals) Order, 1964 by the Ministry of Home Affairs decentralizes the establishment of tribunals to local authorities.
- This shift empowers individuals to approach Tribunals, marking a significant departure from the prior system where only the State could initiate action.
- The amendment aims to provide fair opportunities for those excluded from the National Register of Citizens (NRC).
- Procedures for Non-Listed Individuals involve seeking redressal from Tribunals for those not listed in the NRC.
- District Magistrates can refer cases of individuals who haven’t filed claims against their NRC exclusion.
Concerns Regarding Transparency and Governance
- MCIs often lack transparency about their corporate structure, operating as privately held entities.
- Limited public disclosures, often sourced from external outlets like the press or court filings, cover only a fraction of their business.
- Additionally, MCIs commonly fail to separate conflicting business lines and lack clear transaction accounts and audit practices.
Case Study: FTX Collapse
FTX faced SEC charges for defrauding customers, alleging the concealment of information and misuse of funds.
Special treatment accusations include providing unique privileges to Alameda Research LLC, such as an unlimited credit line and exemption from risk measures.
Risks and Vulnerabilities of MCIs
- Poor risk management within MCIs may facilitate insider misconduct, heightening vulnerabilities.
- Opaque information can lead to inflated prices of self-issued crypto assets, and the lack of transparency can obscure risks related to governance, risk management, and business model profitability.
Concentration Risk and Market Dominance
- High concentration within MCIs, coupled with hosting multiple services, raises concerns about potential anti-competitive behavior and market manipulation.
- MCIs may create barriers to entry and increase costs for users switching to competitors.
Spillover into the Traditional Financial System
- The report suggests that the failure of an MCI currently poses a limited threat to global financial stability.
- The closure of Silvergate Bank post-FTX collapse underscores concentrated deposit exposures and vulnerabilities related to leverage and liquidity mismatch.
- MCIs relying on traditional banks for transaction services introduce counterparty and credit risks.
Conclusion
The FSB’s report emphasizes the necessity for robust regulatory frameworks to address the complex risks associated with MCIs. As the crypto-asset market evolves, regulators and stakeholders must address issues of transparency, governance, and market integrity to ensure financial stability.
Global River Cities Alliance (GCRA) launched
Context:
The inauguration of the Global River Cities Alliance (GRCA) took place at the United Nations Climate Change Conference COP28 in Dubai.
Background:
Playing a pivotal role in executing India’s Namami Gange program, the National Mission for Clean Ganga (NMCG) has made significant progress in river conservation and sustainable water management.
Expansion of the River Cities Alliance:
- The GRCA builds upon the existing River Cities Alliance, originally formed by NMCG in collaboration with the National Institute of Urban Affairs (NIUA).
- This alliance, comprising 142 Indian River cities, has now expanded globally to include cities such as Den Haag from the Netherlands, Adelaide from Australia, and Szolnok from Hungary.
International Collaboration:
- A groundbreaking collaboration occurred when the River Cities Alliance (RCA) signed a Memorandum of Common Purpose (MoCP) with 124 member cities of the Mississippi River Towns and Cities Initiative in the United States.
- This unprecedented alliance underscores a shared commitment to global river conservation.
NMCG’s Statement:
- NMCG emphasized the significance of the GRCA launch in a statement, considering it a monumental step in global efforts towards river conservation and sustainable water management.
- Director General G Asok Kumar quoted Prime Minister Narendra Modi’s vision for new river planning and stressed the importance of incorporating rivers into urban planning with a holistic approach.
Global River Cities Alliance’s Role:
- The GRCA, representing an international alliance, commits to coordinating efforts for the conservation and sustainable management of rivers.
- With a global perspective, it plays a crucial role in developing strategies, sharing best practices, and fostering collaboration among cities confronting similar challenges related to river ecosystems.
First-of-its-Kind Initiative:
- The inclusion of cities from different continents in the GRCA, along with the MoCP signed with the Mississippi River Towns and Cities Initiative, highlights the uniqueness of this initiative.
- By bringing together cities worldwide, the GRCA aims to establish a platform for collective action and knowledge exchange to address common goals in river conservation.
Way Forward:
The launch of the Global River Cities Alliance by the National Mission for Clean Ganga signifies a historic moment in the global pursuit of river conservation.
This alliance creates opportunities for innovative solutions, collaborative initiatives, and the exchange of expertise among cities from diverse regions to address the challenges faced by river ecosystems globally.
Positioned as a catalyst for positive change, the GRCA is poised to contribute significantly to sustainable water management on a global scale.
Carbon Footprint Disparity
In a study conducted by the Council on Energy, Environment, and Water (CEEW), notable differences in carbon emissions were identified between residents of developed and developing countries.
The findings of the study, titled “The Emissions Divide: Inequity across Countries and Income Classes,” highlight the following key points:
- Carbon Emission Disparities:
- Developed countries exhibit significantly higher per capita carbon emissions than the wealthiest 10% in certain developing nations.
- The top 10% in developing countries (excluding Mexico and South Africa) contribute nearly the same volume of carbon dioxide as individuals in the lower deciles of developed nations.
- Carbon emissions for the poorest in India, Brazil, and the ASEAN region are six to 15 times less than those in the lowest income bracket in Saudi Arabia, the US, or Australia.
- Income Disparities and Carbon Footprint:
- The per capita carbon footprint of the top 1% and top 10% income groups in developed countries is considerably higher, ranging from four to eight times more than their counterparts in developing nations.
- Study Scope and Data Sources:
- The study covers 14 countries, the European Union, and the ASEAN region, representing approximately 81% of global emissions.
- Data from the World Inequality Database and the World Bank were utilized to analyze per capita CO2 emissions across different income brackets.
- Emissions Divide and Urgent Actions:
– The report reveals that the wealthiest 10% in developed countries and China emit 22% more CO2 than all the developing countries studied combined.
– The report advocates for the adoption of low-carbon lifestyles among the affluent, emphasizing potential significant emission reductions.
- Potential Solutions:
- If the richest 10% in developed countries and China halve their carbon footprint, more than 3.4 billion tonnes of CO2 could be saved annually.
- A proposed carbon tax on the wealthiest 10% could generate $500 billion, discouraging carbon-intensive consumption and supporting climate change mitigation, research, and development.
- Carbon Footprint:
- A carbon footprint represents the total Greenhouse Gas (GHG) emissions, mainly carbon dioxide (CO2) and methane, released into the atmosphere due to human activities.
- It can be associated with individuals, organizations, products, events, etc.
The carbon footprint is a subset of the ecological footprint, focusing on greenhouse gas emissions from burning fossil fuels.
- GHGs and Measurement:
- The carbon footprint encompasses six GHGs recognized by the Kyoto Protocol.
- Carbon footprints are typically measured in equivalent tons of CO2 (CO2e) over a year.
- CO2e is calculated by multiplying the emissions of each GHG by its 100-year Global Warming Potential (GWP).
- Energy Generation Impact:
When comparing energy generation, coal has the largest carbon footprint, followed by oil, natural gas, and geothermal energy.
- Types of Carbon Footprints:
– Organizational: Encompasses emissions from all activities within an organization, including energy use, industrial processes, and company vehicles.
– Product: Encompasses emissions from raw material extraction and manufacturing to usage, reuse, recycling, or disposal, covering the entire life cycle of a product or service.
Down Syndrome
Recently, a noteworthy incident surfaced involving a 21-year-old individual with Down Syndrome who thwarted a robbery attempt by brandishing a toy gun when two intruders broke into his residence in Delhi.
Regarding Down Syndrome:
- Down syndrome is a genetic condition leading to physical and cognitive impairments.
- The condition arises from an additional copy of chromosome 21, altering the normal development of a baby’s body and brain.
- Common symptoms include mental retardation, cognitive challenges, distinctive facial features like tilted eyes and a skin fold above the eye, and susceptibility to cardiac issues.
- Down syndrome presents in three forms: Trisomy 21 (95%), Translocation Down syndrome (3%), and Mosaic Down syndrome (2%).
Unfortunately, there is no cure for Down syndrome, but therapies such as physical therapy, occupational therapy, speech therapy, and early intervention special education can offer support.
