SHANKAR IAS ACADEMY

Disqualification Of MLAs - II What is the issue? The recent disqualification of 18 MLAs in Tamil Nadu by the Speaker brings to the fore certain constitutional questions on the role of the Governor and the Speaker. What are the contentious issues? Governor  - The Governor in this case is showing reluctance to order a floor test, despite a request from the opposition party. A Constitution Bench has earlier observed that the activities within a political party, as to any turbulence or unrest, were beyond the concern of the Governor. The Governor can intervene only when a breakaway group constitutes two-thirds of a party, as stipulated in the Tenth Schedule. However, notably the Bench adds that the Governor should take action during a constitutional crisis i.e. when the government is seen to have lost the confidence of or majority in the House. Thus the court bars Governors only from political embroilment and not restrict their constitutional duty and responsibility. ...

Tata’s Hard Choice What is the issue? Tata Steel’s recent merger is a proof of hard commercial considerations in overseas acquisitions. What is the merger about? Tata Steel had announced its tentative plans to merge their European steel operations in a 50:50 joint venture. Tata Steel and Germany’s ThyssenKrupp AG have planned for this merger. This merger will emerge as the second largest steel producer in the high value-added European market. These companies clarified that this merger is driven more by “industrial and strategic logic” than the need for financial engineering or job cuts. What is the need for the merger? This merger is more about reducing exposure to the barely-growing and over-supplied European market. Tata Steel is keen to free up the capital from its overseas plants in order to double its Indian capacity. Global operations have become a millstone around Tata Steel’s neck. ThyssenKrupp has been progressively shedding its commodity businesses to f...

How To Deal Shell Companies Why in news? Recently union government has initiated action against more than two lakh shell companies as part of Operation Clean Money. What is operation clean money? Operation Clean Money was initiated by Income Tax Department (ITD). Initial phase of the operation involved-verification of large cash deposits made after demonetization. Second phase of the operation involves is identification of high risk persons for detailed investigations by the ITD. What are shell companies? Shell companies are typically corporate entities which do not have any active business operations or significant assets in their possession. The government views them with suspicion as some of them could be used for money laundering, tax evasion and other illegal activities. Some laws helpin curbing illegal activities to target shell companies are Benami Transaction (Prohibition) Amendment Act 2016 The Prevention of Money Laundering Act 2002 The Companies Act,...

Challenges In Pharma Trade What is the issue? The Indian pharmaceutical industry is facing challenges in both domestic as well as in international markets. What is the model of Indian Pharma industries? India is the third largest supplier of the world’s requirement of medicine. It capitalised on a strong domestic base in India through rapid product introductions, a kind regulatory and intellectual property system. Indian pharma companies chose pockets in Africa, Asia and the Middle East as natural expansion outposts. What are the challenges in Indian pharma trade? Domestic- Indian patients are paying high prices for drugs, due to fragmentation of distribution channels. The drug regulatory laws are not implemented in identical fashion across every state and city of the country. There are many ill-trained chemist all over the nation. International-  US Supply channel consolidationhas led to 90 per cent of the buying power concentration in three big companies, ...

Remedies For Unnatural Jail Death Why in news? Recently, SC directed the Chief Justices of all HC to register petitions suo motu to identify the kin of prisoners who died unnatural deaths and order the states to provide them compensation. What is the need for this Judgement? Normally, the National and States Human Rights Commissions decide and award compensations in cases of custodial torture, deaths. However, compliance by State governments is low as these commissions do not exercise any power of contempt. This judgment is significant as the high court will now directly award compensation and ensure compliance by the States. It also asked the Ministry of women and child development to formulate procedures for tabulating children who died unnatural deaths in custody or in child care institution by this year end. What is the significance? Human rights in a welfare state are not dependent on the status of the person whether he is a criminal or a victim. There is no...