Daily Current Affairs for 6th July 2021

GS PAPER II

Section 66A of IT Act

Why in News

The Supreme Court found it “distressing”, “shocking” and “terrible” that people were still booked and tried under Section 66A of the Information Technology (IT) Act even six years after it struck down the provision as unconstitutional and a violation of free speech.

Key Points

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• Section 66A had prescribed three years’ imprisonment if a social media message caused “annoyance” or was found “grossly offensive”.
• The court, in the Shreya Singhal judgment authored by Justice Rohinton F. Nariman in March 2015, had concluded that the provision was vague and worded arbitrarily.
• Number of cases registered under Section 66A had actually increased post the judgment.
• Attorney General of India pointed out that law books published post the verdict featured the non-existent Section 66A “in full”.
• But Justice agreed that the “state of affairs is shocking”. The court had to intervene and work out a mechanism to disseminate the Shreya Singhal judgment to every police station and trial court in the country.

Shreya Singhal judgment

• Shreya Singhal Vs. Union of India is a judgement by a two-judge bench of the Supreme Court of India in 2015, on the issue of online speech and intermediary liability in India.
• The Supreme Court struck down Section 66A of the Information Technology Act, 2000, relating to restrictions on online speech, as unconstitutional on grounds of violating the freedom of speech guaranteed under Article 19(1)(a) of the Constitution of India.
• The Court further held that the Section was not saved by virtue of being a ‘reasonable restriction’ on the freedom of speech under Article 19(2).
• The Supreme Court also read down Section 79 and Rules under the Section. It held that online intermediaries would only be obligated to take down content on receiving an order from a court or government authority.
• The case is considered a watershed moment for online free speech in India.

Section 66A of IT Act

• Any person who sends, by means of a computer resource or a communication device:
• Any information that is grossly offensive or has menacing character; or
• Any information which he knows to be false, but for the purpose of causing annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred or ill will, persistently by making use of such computer resource or a communication device,
• Any electronic mail or electronic mail message for the purpose of causing annoyance or inconvenience or to deceive or to mislead the addressee or recipient about the origin of such messages, shall be punishable with imprisonment for a term which may extend to three years and with fine.
• The court in its 2015 judgment has noted that the provision was “vague and arbitrary”.
• But, even after March 2015, after the Shreya Singhal Judgment which struck down Section 66A, 1,307 cases were registered under the law.
• The plea has said 381 cases have been registered in Maharashtra, 295 in Jharkhand and 245 in UP since the 2015 Supreme Court judgment.

GS PAPER II

Section 43D (5) of the Unlawful Activities Prevention Act (UAPA)

Why in News

Recently, Stan Swamy had moved the Bombay High Court Challenging Section 43D (5) of the Unlawful Activities Prevention Act (UAPA), termed the provision is “illusory”.

Key Points

• The provision makes grant of bail virtually impossible under UAPA since it leaves little room of judicial reasoning.
• In the case of Zahoor Ahmed Shah Watali, the Supreme Court in 2019 confirmed that courts must accept the state’s case without examining its merits while granting bail.
• In string of rulings, however, courts have taken an alternative reading of this provision, emphasising the right to a speedy trial and raising the bar for the state to book an individual under UAPA.

Unlawful Activities Prevention Act (UAPA)

• Unlawful Activities (Prevention) Act, 1967 is the cornerstone of India’s legislative policy against terrorism. It was enacted with an objective to control unlawful activities.
• It embodies the essence of the Preventive Detention Act which expired in 1969. Over the years the act has gone through several amendments to widen the ambit of its application.

Salient Features of the UAPA Act

• The Act gives special procedures to handle terrorist activities, among other things. It aims at the effective prevention of unlawful activities associations in India. Unlawful activity refers to any action taken by an individual or association intended to disrupt the territorial integrity and sovereignty of India.
• Who may commit terrorism: According to the Act, the union government may proclaim or designate an organisation as a terrorist organisation if it: (i) commits or participates in acts of terrorism, (ii) prepares for terrorism, (iii) promotes terrorism, or (iv) is otherwise involved in terrorism. The Bill also empowers the government to designate individuals as terrorists on the same grounds.
• UAPA has the death penalty and life imprisonment as the highest punishments. The Act assigns absolute power to the central government, by way of which if the Centre deems an activity as unlawful then it may, by way of an Official Gazette, declare it so.
• Under UAPA, both Indian and foreign nationals can be charged. The offenders will be charged in the same manner whether the act is performed in a foreign land, outside India.
• Approval for property seizure by National Investigation Agency (NIA): As per the Act, an investigating officer is required to obtain the prior approval of the Director-General of Police to seize properties that may be connected with terrorism. The Bill adds that if the investigation is conducted by an officer of the National Investigation Agency (NIA), the approval of the Director-General of NIA would be required for seizure of such property.
• The investigation by the National Investigation Agency (NIA): Under the provisions of the Act, investigation of cases can be conducted by officers of the rank of Deputy Superintendent or Assistant Commissioner of Police or above. The Bill additionally empowers the officers of the NIA, of the rank of Inspector or above, to investigate cases.
• Insertion to the schedule of treaties: The Act defines terrorist acts to include acts committed within the scope of any of the treaties listed in a schedule to the Act. The Schedule lists nine treaties, comprising of the Convention for the Suppression of Terrorist Bombings (1997), and the Convention against Taking of Hostages (1979). The Bill adds another treaty to this list namely, the International Convention for Suppression of Acts of Nuclear Terrorism (2005).

Section 43D (5) of the Unlawful Activities Prevention Act (UAPA)

• Section 43D (5) states that, “Notwithstanding anything contained in the Code, no person accused of an offence punishable under Chapters IV and VI of this Act shall, if in custody, be released on bail or on his own bond unless the Public Prosecutor has been given an opportunity of being heard on the application for such release.”
• “Provided that such accused person shall not be released on bail or on his own bond if the Court, on a perusal of the case diary or the report made under section 173 of the Code is of the opinion that there are reasonable grounds for believing that the accusation against such person is prima facie true.”

GS PAPER II

Atmanirbhar reforms

Why in News

International trade and investment flows into India could be affected by several aspects of the Atmanirbhar Bharat programme as they posed ‘perceived as well as real’ challenges for global investors.

Key Points

• Some of the reforms announced under the programme could have ‘negative consequences for U.K. and all multi­national companies’, even as it took note of Prime Minister’s assertion that the self-reliant India program is about integrating with global supply chains, not isolating from them.
• Warning that the spate of ‘unexpected and sharp’ increases in import tariffs could be ‘counterproductive’, the U.K. India Business Council (UKIBC) has suggested ways to mitigate the ‘new challenges’ posed by Atmanirbhar Bharat and urged the government to correct course.
• U.K. businesses must not be affected by ‘restrictive measures’, they have pleaded, possibly by creating a ‘carve­out’ for them in the bilateral trade pact being negotiated.

Strengths, not tariffs

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• India should attract investors due to its strengths rather than by using tariffs as a tool to push international businesses to invest and make in India.
• It is highlighted in the report in views on the Atmanirbhar Bharat policy that, the Government of India should be flexible in its ‘vocal for local’ approach.
• To be a manufacturing hub, India will need to be part of international supply chains, which will mean importing as well as exporting.
• If tariffs make manufacturing in India too expensive, investors will go elsewhere, the report noted.
• Even if India chooses tariffs as a policy tool, it should signal how import duties will rise over the coming years so investors get an incentive and the time to create domestic supply chains.
• It has to be recognised that certain aspects of the initiative have the potential to curtail international trade and investment, such as increased tariffs, non­tariff restrictions on imports, and import substitution.
• Attempts to renegotiate power purchase agreements and adhoc policy shifts are also unnerving for infrastructure investors.
• While the campaign has opened up several sectors for foreign investors, including defence, atomic energy, agriculture, insurance, healthcare and civil aviation, the UKIBC has outlined concerns and challenges across sectors in its report titled ‘Road to a UK­India Free Trade Agreement: Enhancing the Partnership and Achieving Self-reliance’.

GS PAPER III

Organization of the Petroleum Exporting Countries

Why in News

The latest round of meetings among the OPEC+ group of oil-exporting countries has stalled as the UAE has pushed back proposals making an increase in crude oil supply conditional on an extension to an output agreement.

Background

• The OPEC+ group of countries had, in April 2020, entered into a two-year agreement, which entailed steep cuts in crude production to deal with a sharp fall in the price of oil as a result of the Covid-19 pandemic.
• The price of Brent crude hit an 18-year low of under $20 per barrel in April 2020 as economic activity around the world crashed as countries dealt with the pandemic.
• The initial production cut by OPEC+ was about 10 million barrels per day or about 22 per cent of the reference production of OPEC+ nations.
• In November 2020, however, the price of Brent crude started climbing consistently and has, now, risen to $76.5 per barrel, up from about $40 per barrel at the end of October, buoyed by the steady rollout of vaccination programmes around the world.
• OPEC+, however, maintained lower levels of production despite crude oil prices reaching pre-Covid levels, with Saudi Arabia, notably, announcing a further cut in production of 1 million barrels per day for the February-to-April period, which helped boost rising prices even further.
• The OPEC+ group ran into sharp criticism from developing economies, including India, for deliberately maintaining low supply levels to raise prices.
• Petroleum Minister had even said the high price of crude oil was slowing down the economic recovery of developing economies post the pandemic.
• In April, OPEC+ agreed to gradually increase crude production as prices reached $64.5 per barrel including a phased end to Saudi Arabia’s 1 million barrel per day cut in production by July.
• According to the UAE’s official news agency, Emirates News Agency, the UAE agreed that there was a need to increase crude oil production from August, but did not agree to a condition by the OPEC Joint Ministerial Monitoring Committee (JMMC) that the two-year production agreement be extended by six months.

Impact on India

• If the UAE and other OPEC+ nations do not reach an agreement to increase production in August, expected relief in the form of lower crude oil prices could be delayed.
• India is currently facing record-high prices of petrol and diesel, with pump prices of the former exceeding Rs 100 per litre in 13 states and Union Territories.
• High crude prices have led to Indian oil marketing companies hiking the price of petrol by about 19.3 per cent and that of diesel by about 21 per cent since the beginning of 2021.

Organization of the Petroleum Exporting Countries (OPEC)

• The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
• The five Founding Members were later joined by:
• Qatar in 1961 which was terminated in January 2019;
• Indonesia in 1962 which was suspended its membership in January 2009, but reactivated it in January 2016, but decided to suspend it again in November 2016;
• Libya in 1962;
• United Arab Emirates in 1967;
• Algeria in 1969;
• Nigeria in 1971;
• Ecuador in 1973 which was suspended its membership in December 1992, but reactivated it in October 2007, but decided to withdraw its membership effective 1 January 2020;
• Angola in 2007;
• Gabon in 1975, which was terminated its membership in January 1995 but re-joined in July 2016;
• Equatorial Guinea (2017); and
• Congo (2018).
• OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.

OPEC in 2020

• The new decade witnessed an unprecedented beginning with the outbreak of the COVID-19 pandemic pervading almost every aspect of daily lives.
• The pandemic had a detrimental impact on both the world economy and the energy sector, pressuring nations to take necessary, firm measures to slow the spread of the virus and counter its effects.
• The oil market saw demand in freefall, global storage filling quickly and large-scale volatility.
• This propelled OPEC and its partners in the Declaration of Cooperation to intensify their collaborative efforts to restore much-needed stability, resulting in the largest and longest voluntary production adjustments in the oil market’s history.
• The importance of these efforts was recognized by numerous countries and organizations, including G20 Energy Ministers, Argentina, Brazil, Canada, Colombia, Norway, the African Petroleum Producers’ Organization, the International Energy Agency, the International Energy Forum and many independent producers.
• OPEC turned 60 in September, marking a significant milestone on the Organization’s historic journey.

GS PAPER III

Service sector of India

Why in News

India’s services sector shrank the most last month since July 2020, with the survey based IHS Markit Purchasing Managers Index (PMI) for services at 41.2, reflecting a second successive monthly contraction in new business and increased job shedding by firms.

Key Points

• International demand for Indian services deteriorated further with new export orders falling for the sixteenth straight month.
• The sharp contraction in the June Services PMI, followed May’s 46.4. A reading above 50 denotes expansion and one below it signifies a contraction in business activity.
• Business activity and new orders decreased in four out of the five broad areas of the service economy, with the fastest rates of contraction registered in consumer services.
• Transport and storage were the only segment to post growth.
• Jobs fell in tandem with new orders. The fall in employment was the seventh in consecutive months and the fastest over this period.
• The decline in jobs was widespread across the five monitored sub­sectors, and led by consumer services.
• The overall level of business sentiment was down for the third month in a row in June, reaching its lowest mark since last August.

Uncertainty weighs

• Uncertainty about the path of the pandemic restricted business confidence among services firms, who were generally neutral in their forecasts for output in the year ahead.
• June’s manufacturing PMI had earlier slid to 48.4, and with services activity also retreating, the Composite PMI Output Index declined from 48.1 in May to 43.1, again registering the sharpest contraction since July 2020.

Purchasing Managers’ Index (PMI)

• Purchasing Managers’ Index (PMI) is an indicator of business activity, both in the manufacturing and services sectors.
• It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before.
• It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
• It derived from a series of qualitative questions. Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

Purchasing Managers’ Index implications for the economy

• The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available.
• It is considered a good leading indicator of economic activity. Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
• Central banks of many countries also use the index to help make decisions on interest rates.