PMLA has SC’s approaval

The Supreme Court has upheld the constitutional validity of the provisions of the Prevention of Money Laundering Act (PMLA), calling it a “unique and special legislation” and underlining the powers of the Directorate of Enforcement (ED) to hold inquiries, arrest people and attach property.

Prevention of Money Laundering Act (PMLA)

PMLA, 2002 is an Act of the Parliament of India enacted by the NDA government to prevent money laundering and to provide for confiscation of property derived from money laundering.

It was enacted in response to India’s global commitment (including the Vienna Convention) to combat the menace of money laundering.

PMLA and the Rules notified there under came into force with effect from July 1, 2005.

The act was amended in the year 2005, 2009 and 2012.

Objectives of PMLA

The PMLA seeks to combat money laundering in India and has three main objectives:

To prevent and control money laundering.

To confiscate and seize the property obtained from the laundered money; and

To deal with any other issue connected with money laundering in India.

Issues with the PMLA

Opacity: The Enforcement Case Report (the analogue of an FIR) is not shared with the accused.

Nor are the full grounds of arrest shared with you.

Bail cannot be granted without hearing the prosecution and you are required to prove your innocence to get bail.

Lack of clarity in definition: The definition of crime under this Act is elastic.

The sovereign has immense latitude to define what counts as the relevant crime.

It can also in a classic instance of rule by law change the presumption of innocence.

Lack of safeguard: The list of crimes included overrides similar crimes in other parts of the law.

The code has an exceptional procedure of its own that can trump the safeguards of the Criminal Code of Procedure.

In theory, the law provides safeguards against attaching properties, but those safeguards are weak and do not allow for even reasonable exceptions that might be necessary for your dignity or continuing with your business or livelihood.

Mere possession of the proceeds of a crime, without any surrounding consideration of how one came to be in possession of the proceeds, makes it an offence.

That the state officials are not classed as police. But they, in some respects, have even more power than the police.

Use of Money Bill route: The law itself has been enacted by using the controversial Money Bill route.

Low conviction rate: The conviction rate under this law is very low, less than 0.5 per cent.

Misuse of law: The stringent provisions and vagueness in definitions in the law make it susceptible to misuse against a political opponenet.

International context: Post 9/11, there was concern with terrorist financing and arguably many international treaties actually weakened, rather than strengthened, individual rights protections.

The goal of international treaties is laudable.

But the rhetoric of international treaties is often used to override domestic rights safeguards.

Why the govt plans to scrap the decades-old Coffee Act?

The Ministry of Commerce and Industry is planning to replace the 80-year-old Coffee Act with the new Coffee (Promotion and Development Bill), 2022, which has been listed for the Monsoon Session of Parliament.

What is the Coffee Act?

The Coffee Act, 1942 was first introduced during World War II, in order to protect the struggling Indian coffee industry from the economic downturn caused by the war.

In the 1930s, the Indian coffee industry was facing significant problems, such as large-scale damage by pests and diseases, and the global economic downturn caused by the Great Depression.

With coffee planters making significant losses, the government passed the Coffee Cess Act (XIV of 1935) and established the first Indian Cess Committee in November 1935.

This aimed to promote the sale of coffee and increase consumption of Indian coffee at home and abroad.

These problems from the 1930s were compounded with the outbreak of World War II, as low demands and a loss of foreign markets led to a sharp decline in coffee prices.

Since the Cess Committee was not able to deal with the crisis faced by the industry, the government formed the Coffee Board, through the introduction of the Coffee Act, 1942.

Purpose of the Act

The purpose of the Act was to provide for the development of the coffee industry.

The Board was tasked with supporting the industry in marketing, promotion of consumption, finance and research and development.

Why scrap the old law?

The government is now trying to scrap the law because it claims that many of the provisions have become redundant and are too restrictive.

It has also proposed to repeal the decades old laws on tea, spices and rubber, and introduce new legislations in order to increase the ease of doing business and promote the development of these sectors.

These are very old laws and the idea is only to simplify them, make it easier to do business.

It aims to ensure that the small people in the different areas like coffee growing, tea growing do not have to suffer from high levels of compliance burden.

Major contentious factor: Pooling System

Before India liberalised its economy in 1991, the Coffee Board controlled the marketing of the commodity in its entirety, both in India and abroad.

The Act introduced a pooling system, where each planter was required to distribute their entire crop to a surplus pool managed by the Board, apart from the small quantities that were allowed for domestic use and seed production.

The Board marketed 70% of the total pool for export and 30% for domestic markets, and sold them in separate auctions, according to Takamasa Akiyama, an economist affiliated with the World Bank.

In order to spur domestic consumption, the price of domestic coffee was kept artificially low.

The changes since liberalization

While the Coffee Board no longer maintains its monopolistic control over the marketing of Indian coffee.

Through a series of amendments, the Board’s authority was reduced, and in 1996, the pooling system was abolished and growers were allowed to directly sell to processing firms.

The coffee market was entirely deregulated and the growers exposed to the free market.

Since liberalization, the Coffee Board plays more of an advisory role, and aims at increasing production, promoting further export and supporting the development of the domestic market.

What are the proposed changes?

In order to facilitate growth and ease of doing business, the government would remove the restrictive and redundant provisions.

The centre wants to introduce a simplified version of the Act to suit the present needs of the industry.

The government would not close the Coffee Board, but would rather shift it from the Ministry of Commerce to the Ministry of Agriculture.

Here it aims to ensure that the benefits of all agricultural schemes are extended to coffee growers.

The new legislation is now primarily concerned with promoting the sale and consumption of Indian coffee including through e-commerce platforms, with fewer government restrictions.

It also aims at encouraging further economic, scientific and technical research in order to align the Indian coffee industry with “global best practices.”

Celebrating World Tiger Day

As the world celebrates yet another World Tiger Day July 29, 2022, there is sobering news.

Why in news?

The International Union for the Conservation of Nature (IUCN) recently confirmed that the tiger has gone extinct in Cambodia, Laos and Vietnam.

Tigers in India

India is home to a third of the global tiger population and the country’s success in saving the big cat is crucial to global efforts to protect their numbers.

India was the first country in the world to champion the cause of conservation of the tiger and its natural habitats.

The aesthetic, ethical and cultural value of tigers have also proved to be critical factors for saving tigers, which has also ensured the success of tiger conservation in India.

Why is it necessary to conserve Tigers?

The tiger is a unique animal that plays a pivotal role in the health and diversity of an ecosystem.

Predation balance: It is a top predator which is at the apex of the food chain.

Regulation of herbivores: It keeps the population of wild ungulates in check, thereby maintaining the balance between prey herbivores and the vegetation upon which they feed.

Ecosystem balance: Therefore, the presence of tigers in the forest is an indicator of the well being of the ecosystem.

Tourism: Apart from the ecological services provided by the animal, the tiger also offers direct use such as attracting tourists, which provide incomes for local communities.

Various efforts to save Tigers

India is home to 70 percent of the global tiger population. Therefore, the country has an important role to play in tiger conservation.

[1] Project Tiger

The Government of India started ‘Project Tiger’ in 1972 with a view to conserving the animal.

As part of this project nine core buffer areas for maintaining tiger population were notified. Now, this has >expanded to 48 tiger reserves.

[2] CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)

Besides protecting tiger territory, other measures being taken to save the tiger include: curbing wildlife trade through international agreements.

CITES is an international agreement between governments aimed at ensuring that international trade in specimens of wild animals and plants, including tigers, does not threaten their survival. India ratified this treaty in 1976.

[3] Global Tiger Forum and Tiger Range Countries

Established in 1994, the Global Tiger Forum is the only inter-governmental body for tiger conservation.

Its membership includes seven tiger range countries: Bangladesh, Bhutan, India, Cambodia, Myanmar, Nepal and Vietnam.

[4] CA|TS

14 tiger reserves have been accredited under CA|TS (Conservation Assured | Tiger Standards) categories.

The CA|TS is a set of criteria that examines the management of tiger sites to gauge the success rates of tiger conservation.

[5] St. Petersburg Declaration

This resolution was adopted In November 2010, by the leaders of 13 tiger range countries (TRCs) assembled at an International Tiger Forum in St. Petersburg, Russia

It aimed at promoting a global system to protect the natural habitat of tigers and raise awareness among people on white tiger conservation.

[6] Various NGOs

International NGO members consist of World Wildlife Fund, International Fund for Animal Welfare (IFAW), and TRAFFIC.

Several national NGOs from India and Nepal are also members.

Success of these efforts

The four-year tiger census report, Status of Tigers in India, 2018 shows the number of the big cat has increased across all landscapes.

The total count has risen to 2,967 from 2,226 in 2014 — an increase of 741 individuals (aged more than one year), or 33%, in four years.

At present, India has around 75% of tiger population and its source areas amongst the 13 tiger range countries in the world.

2.24% of country’s geographical area is spread out in 51 tiger reserves in 18 States.

Various threats to Tigers

Despite measures being initiated to protect wild tigers, habitat loss and poaching continue to pose a threat to the animal’s survival.

Tiger parts are used in traditional Chinese medicines, tiger skin is used for decorative and medicinal purposes and tiger bones are again used for medicinal purposes for curing body pain, et al.

Between 2000 and 2014, TRAFFIC’s research found that parts of a minimum of 1,590 Tigers were seized in Tiger range States, an average of two Tigers per week.