Allow Gambling in Sports But Regulate It, Says Law Panel

The Law Commission has submitted Report No. 276, Legal Framework: Gambling and Sports Betting including in Cricket in India to the government. 

• In the case of BCCI vs Cricket Association of Bihar and Ors (2016), the Supreme Court had asked the Commission to study the possibility of legalizing betting in India.

Key points

• The commission has stated that since it is impossible to stop illegal gambling, the only viable option left is to regulate gambling in sports. The Parliament may enact a model law for states or alternatively may legislate in the exercise of its powers under Articles 249 or 252 of the Constitution which allows it to enact a law on a state subject in larger national interest.
• The commission, headed by former Supreme Court judge, Justice B.S. Chauhan, has recommended cashless gambling in sports as a means to increase revenue and deal a blow to unlawful gambling.
• Such activities, if properly regulated would ensure transparency in the market, as also strike at the underworld’s control over the illegal and unregulated gambling industry.
• The money generated can be used for public welfare activities. For that, the revenue from gambling should be taxable under laws like the Income Tax Act, the Goods and Services Tax Act.
• Transactions between gamblers and operators should be linked to their Aadhaar and PAN cards so that the government could keep an eye on them.
• The Commission has specified a minimum age of 18 years and above to gamble.
• The commission recommended a classification of ‘proper gambling’ and ‘small gambling’. Proper gambling would be for the rich who play for high stakes, while small gambling would be for the low-income groups.
• The panel wants the government to introduce a cap on the number of gambling transactions for each individual, that is, monthly, half-yearly and annual. Restrictions on amount should be prescribed while using electronic money facilities like credit cards, debit cards, and net-banking. Gambling websites should also not solicit pornography.
• The Commission has recommended that match-fixing and sports fraud should be specified as criminal offences with severe punishment.
• Gambling and betting, if any, should be offered only by Indian licensed operators from India possessing valid licences granted by the game licensing authority.
• Regulations need to protect vulnerable groups, minors and those below the poverty line, those who draw their sustenance from social welfare measures, government subsidies and Jan Dhan account holders from exploitation through gambling.
• According to the commission, Foreign Exchange Management and Foreign Direct Investment laws and policies should be amended to encourage investment in the casino/online gaming industry. This would propel tourism and employment.

Concerns

• One of the members expressed strong dissent in a separate note filed with the government which said the Law Commission report was not comprehensive. It stated that the legalized gambling in a country as poor as India would leave the poor poorer and only vested interests want legalisation of gambling.
• The commission has been criticized for exceeding the brief given to it by the Supreme Court in 2016. The court had merely asked the commission to look into the narrow question of legalising betting in cricket and not sports as a whole. The court’s reference had come in its judgment in the BCCI case involving illegal betting in IPL cricket matches. The dissenting note said the recommendation may lead to an unhealthy and unwarranted discussion.

Why China Insists on Chinese Taipei Rather Than Taiwan

Due to pressure from the Chinese government, various international airlines such as Delta Airlines, Qantas, Singapore Airlines and Air India have recognized Taiwan by the name Chinese Taipei.

Background

• Taiwan (Republic of China) calls itself a democratic, self-ruled country, however, according to the “One China” policy, Beijing considers Taiwan a province of Mainland China.

NOTE: What is the One-China Policy?

• The One-China policy refers to the policy or view that there is only one state called "China", despite the existence of two governments that claim to be "China".
• As a policy, this means that countries seeking diplomatic relations with People's Republic of China (PRC, Mainland China) must break official relations with the Republic of China (ROC, Taiwan) and vice versa.
• It is the diplomatic acknowledgement of China's position that there is only one Chinese government. Under the policy, China sees Taiwan as a breakaway province to be reunified with the mainland.

• Although the two participate separately in international events, China has repeatedly insisted that Taiwan should be called “Chinese Taipei”, reflecting a deep anxiety to prevent international recognition of Taiwan as a country.
• After the surrender of Japan during World War II, the island of Taiwan was put under Chinese control. Towards the end of the Chinese Civil War in 1949, and before the post-war treaties were to be signed, members of the Kuomintang party (KMT) were driven out of the mainland by the Communists, who would later establish the People’s Republic of China (PRC).
• The KMT retreated to Taiwan, becoming a government in exile. For some time, it was internationally recognized as the government of the Republic of China (RoC).
• In 1979, IOC and later all other international sports federations adopted a resolution, referred to as the Nagoya Resolution under which the National Olympic Committee of the RoC would be recognized as the Chinese Taipei Olympic Committee, and its athletes would compete under the name Chinese Taipei.

How has India Responded to ‘One China Policy’?

• Since 1949, India has accepted the “One China” policy that accepts Taiwan and Tibet as part of China.
• However, India uses the policy to make a diplomatic point, i.e., if India believes in “One China” policy, China should also believe in a “One India” policy.

Trade War: Set to Become a Reality

With US tariffs on $34 billion worth of Chinese goods taking effect, a global trade war is increasingly turning from talk to reality.

• According to the US President, the measures are aimed at levelling the playing field for American companies, which he says will become more competitive.
• The US has already imposed import duties - 25% on steel and 10% on aluminium imports and is eyeing a levy on car shipments from the European Union.

Setting in of Trade War

• China has announced it will respond in kind on the same schedule as the US while the US President has countered with a threat to progressively increase US penalties up to a total of $450 billion in goods (the lion's share of all of China's exports to the United States).
• Head of the International Monetary Fund, Christine Lagarde, has warned the tit-for-tat cycle of retaliation would create "losers on both sides."

Impact of the Trade War

• The fear is that a prolonged battle would disrupt makers and importers of affected goods in a blow to global trade, investment and growth.
• The potential damage to the US and global economies from aggressive trade policies that evolve into protectionism, would raise prices and upend global supply chains.
• The dispute has upset global financial markets including stocks, currencies and the global trade of commodities in recent weeks.
• A China central bank adviser said the planned U.S. import tariffs will cut China’s economic growth by 0.2 percentage points.
• Further, Chinese shares, which have fallen in the run-up to the tariff deadline, slipped further and pulled Asian markets down, while the yuan currency also weakened.
• The tariffs will also hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work - foreign companies accounted for 59% of the $34 billion of exports from China that would be subject to new U.S. tariffs.
• Moreover, unilateral trade measures by the US threaten a slow erosion of the global rules-based trading system.

Impact on India

• While the US steel and aluminium import levies do not harm India grievously, the effects will be felt elsewhere.
• Intermediate goods that originate in the US and form part of the global supply chain will become more expensive and could slow down wheels of trade.
• Moreover, the retaliatory spiral could lead to a breakdown in the global rules-based trading system and raise the risk of an all-out trade war – adversely impacting India’s export growth momentum.

Rupee Sinks To Record Closing Low

The rupee fell to its lowest-ever close as it weakened further against the dollar to end at 68.95.

• The Indian rupee’s previous closing low was the 68.83 a dollar level, on August 28, 2013.
• The Indian currency has depreciated about 8% against the dollar making it the worst performing currency in Asia.

Reasons

• The rupee has come under intense pressure due to a surge in international oil prices which has increased demand for the U.S. currency among the country’s refiners, who import a bulk of their crude requirement from overseas.
• Fears that surging international crude oil prices could fan inflation and widen the current account deficit have also pulled down the rupee.
• The U.S. Federal Reserve’s hawkish stance (a tight monetary policy with higher interest rates) is also prompting capital outflow by foreign investors from emerging markets like India.
• The government’s recent decision to increase minimum support prices for farmers may prompt the RBI to raise interest rates more steeply than expected –which could also add to inflationary pressures.
• The tariff war imposed by the US on Chinese goods has forced the Chinese currency to depreciate. As a result, emerging markets are letting their currencies depreciate to protect export competitiveness, including rupee – as also suggested by advisers to government.

RBI Intervention

• The rupee’s slide past the 69 mark prompted state-run banks to sell dollars on behalf of the central bank.
• The RBI has been intervening in the foreign exchange market to curb volatility.

Public, Private Banks Ink Pact for Faster Resolution of Stressed Assets

Leading public and private sector banks agreed to put in place an Inter-Creditor Agreement (ICA) to ensure faster resolution of stressed assets.

• This will put the onus of deciding action in cases of stressed assets on the respective lead banks.
• The ICA framework envisages effective communication among lenders.
• The agreement, a part of Project Sashakt, will be taken to boards of respective banks and would be cleared in a couple of days.

Key Facts

• Banks have used the voting shares presented in the Insolvency and Bankruptcy Code (IBC) to structure the Inter-Creditor Agreement.
• Accordingly, if 66 per cent of the lenders agree to any particular decision with regard to a stressed asset, it will be enforceable on the other banks.
• The pact is likely to be used for accounts outside IBC framework.
• Through the pact, financial institutions will authorise the lead bank to implement a resolution plan in 180 days.
• The lead bank would then prepare a resolution plan framed by a panel of turnaround specialists and other industry experts - for the operational turnaround of the stressed asset.

Project Sashakt

• Recommended by High-level Committee on Restructuring Stressed Assets and Creating More Value for Public Sector Banks (PSBs) – led by PNB Chairman Sunil Mehta.
• Objectives:
  • Dealing with non-performing assets
  • Strengthening the credit capacity, credit culture and credit portfolio of public sector banks.
• Five Pronged Approach:
  • Outlining a Small & Medium Enterprise resolution approach
  • Bank-led resolution approach
  • Asset Management Company/Alternate Investment Fund led resolution approach
  • National Company Law Tribunal /Insolvency & Bankruptcy Code approach
  • Asset-trading platform

Give Legal Backing to MSP: CAPC

Commission for Agricultural Costs and Prices (CAPC) has recommended that the Centre bring out a legislation which would give the 'right to sell at MSP' some legal teeth by giving farmers the right to sell their produce at those prices.

• The CACP highlighted that the procurement mechanism is broken for most crops and for most farmers.
• Often farmers of remote areas do not have sufficient access to APMCs (Agricultural Produce Market Committees) and their potential market is local haats where their produce is sold below MSP.
• Strong procurement operations need to be expanded to neglected regions, particularly eastern and northeastern regions.
• Therefore, the CAPC wants the Centre to bring in a legislation conferring the “right to sell at MSP”, which will give legal backing to the exercise, ensure that crops are not purchased below fixed price and “instil confidence among farmers”.

Commission for Agricultural Costs and Prices

• It is a statutory panel under the Ministry of Agriculture which makes the recommendations for MSPs for 23 kharif and rabi crops.
• Its suggestions are not binding on the government.

Indo-US Indian Ocean mission

The Indian Ocean Research Vessel (ORV), Sagar Nidhi, will set out as part of an Indo-US expedition seeking to find answers to the vagaries of the Bay of Bengal-fed southwest monsoon, which accounts for 70% of India’s annual rainfall.

Key Highlights

• The south-west monsoon has vigorous intra-seasonal variations of dry and weak spells, hence, Sagar Nidhi will sail through the Bay of Bengal for a month collecting data on ocean conditions at different depths and locations.
• The Indo-US expedition wants to find answers about the unpredictability of the south-west monsoon.
• The project is funded by India’s ministry of earth sciences and the US Office of Naval Research.

Importance of this Mission

• Crucial for farmers and policymakers to know when and for how long the monsoon will remain active.
• Improve the understanding of mixing of fresh water in oceans and these improvements are required in our models for better prediction.

ONV Sagar Nidhi

• Oceanographic Research Vessel (ORV) Sagar Nidhi is primarily used for the country's marine research programme. It is the third research vessel after Sagar Purvi and SagarPaschimi.
• A highly sophisticated custom-built vessel, Sagar Nidhi is used for conducting oceanic studies and search for scientific evidence about the origin of life and cures for chronic diseases.
• The gigantic vessel is also used for oceanographic and hydrographic research, including water, ice and core sampling of the seabed.

Successful Flight Testing of Crew Escape System

ISRO carried out a major technology demonstration, the first in a series of tests to qualify a Crew Escape System, which is a critical technology relevant for human spaceflight. A human space programme focuses on taking a human to space and bringing him back to the Earth safely. 

Key Points

• Only three countries- the USA, Russia and China, have human space flight programmes.
• The only Indian citizen to ever travel to space was fighter pilot Rakesh Sharma who flew aboard Soyuz T-11, a spacecraft of the former USSR in 1984.
• India does not have a human spaceflight programme. However, critical technology developments and demonstration for indigenous human spaceflight capability is in progress. The crew module systems, space suit, recovery systems, crew escape systems and elements of environmental control and life support systems are already developed.

Crew Escape System

• The Crew Escape System is an emergency escape measure designed to quickly pull the crew module along with the astronauts to a safe distance from the launch vehicle in the event of a launch abort.
• Crew escape system is a critical technology for human spaceflight.
• The programme will boost India's progress towards manned space missions.

The Test

• The first test (Pad Abort Test) demonstrated the safe recovery of the crew module in case of any exigency at the launch pad.
• The test was over in 259 seconds, during which the Crew Escape System along with crew module soared skyward, then arced out over the Bay of Bengal and floated back to Earth under its parachutes about 2.9 km from Sriharikota.
• The crew module reached an altitude of nearly 2.7 km under the power of its seven specifically designed quick acting solid motors to take away the crew module to a safe distance without exceeding the safe g-levels.
• Nearly 300 sensors recorded various mission performance parameters during the test flight.

Important Facts for Prelims (July 6th, 2018)

Bhitarkanika National Park

• Bhitarkanika National Park is located in the estuarial region of Brahmani-Baitarani in Odisha’s Kendrapara district.
• Bhitarkanika Wildlife Sanctuary is home to over 215 species of birds, including winter migratory birds from Europe and central-Asia.
• It is one of the largest habitats of endangered estuarine crocodiles in India.