Current Affairs for IAS Exams - 4 July 2017

::National::

ED to probe if companies de-registered recently have been involved in money laundering

• ED will be roped in to probe if companies de-registered recently have been involved in money laundering, official sources said in the wake of PM’s statement that over one lakh companies had been struck off at one go.
• “The fate of one lakh companies has been locked with one stroke of a pen in one minute. The Registrar of Companies (ROC) has removed these one lakh companies. More will be found and even tougher action can be expected against shell companies,” Mr. Modi said.
• Meanwhile, the Ministry of Corporate Affairs (MCA) is preparing to send show-cause notices to over three lakh more firms for striking off their names from the ‘register of companies’.
• Tax consultants and government sources pointed out that while action against companies are initiated under the Companies Act, the scrutiny was stepped up in the wake of demonetisation and as part of the action against black money.
• ED, which deals with Prevention of Money Laundering Act (PMLA) provisions, will soon be called in to look at the companies recently struck off the register. 
• The ED is empowered “to take actions of attachment and confiscation of property if the same is determined to be proceeds of crime derived from a Scheduled Offence under PMLA.” The ED can also launch prosecution against those involved in money laundering.
• These measures followed an operation that was launched post-demonetisation to expedite action against companies that failed to start business within one year of incorporation or were not carrying on any business for two immediately preceding financial years or not applied for dormant status.
• However, referring to Section 252 of the Companies Act, officials pointed out that persons aggrieved by the RoC order — notifying a company as dissolved under Section 248 of the Act — may file an appeal to NCLT within three years from the RoC’s order. 
• If the NCLT finds that the removal of the company’s name was unjustified, it may order its restoration in the register.
• According to the MCA, the total companies registered in India as on May 31, 2017, were 1,659,965, of which 1,322,175 were active.
• The trend of registration of companies (month-wise) showed that after a high of 10,000 in May 2016, it had gradually fallen to about 6,000 in November 2016 — the month when demonetisation was announced.
• The new registrations fell in April to around 9,000, but then rose to 9,673 in May.

All the hurdles for resuming Kambala cleared

• All the hurdles for resuming Kambala — the traditional slush-track buffalo race of the coastal districts — are cleared with the Prevention of Cruelty to Animals (Karnataka Amendment) Bill, 2017, finally getting Presidential assent.
• The Legislative Assembly passed the Bill in February 2017 to put the traditional sport out of the ambit of PCA Act. Governor Vajubhai R. Vala then referred the Bill to the President for his assent.
• Union Home Ministry suggested modifications to the Bill and returned it to the State. It wanted the government to modify or omit the phrase “subject to such other conditions as may be prescribed”, which would open the window for inclusion of more such sports.

Israel says LeT and Hamas group are similar

• Israel believes there is no difference between Pakistan-based “L-e-T” and the Hamas group operating in Israel and Palestine, adding that the Israeli government has unequivocally supported India on the issue of terrorism.
• The strong words from Israeli officials came at a briefing on Prime Minister Narendra Modi’s visit to Israel that begins on Tuesday — the first visit by an Indian Prime Minister — which they described as “historic” with “huge symbolic significance.”
• The words on the common threat of terrorism were shared by Mr. Modi, who told an Israeli newspaper that, “India and Israel could cooperate even more closely and complement each other's efforts to fight with the menace of terrorism.”
• India and Israel will sign a unique Strategic Partnership on non-security issues including Agriculture, Water, Science, technology and Space, said Mr. Sofer.

PM Modi and President Xi to meet in Germany

• The standoff between the Armies of India and China completed 18 days even as military sources speculated that a diplomatic solution could be in sight.
• All eyes are now on the meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the G20 summit in Germany later this week.
• Countries are hopeful of a peaceful end to the confrontation before the two leaders meet. As of now, India continues to push for a flag meeting between local commanders.
• Both sides had deployed additional troops after the initial face-off at the Sikkim-Bhutan-Tibet trijunction, on which all three countries have claims. However there is no further troop addition.
• Mr. Modi and Mr. Jinping will be at Hamburg in Germany for the 12th G20 summit on July 7 and 8 during which they are expected to meet. The standoff is expected to figure in their conversation given the intensity it has generated on both sides.
• News broke out early last week on the standoff between the two countries at the trijunction which began on June 16 after Chinese troops tried to construct a road in the Bhutanese territory at Doko La over the Zom Cheri ridge. 
• Indian Army personnel present there intervened and stopped the Chinese team from advancing.China reacted sharply to this and charged that “Indian troops trespassed the recognised and delineated boundary” between the two countries.
• Breaking silence on the issue, the Centre said last Friday that it was “deeply concerned” at the recent Chinese actions as such construction would represent a significant change of status quo with “serious security implications” for India.

China and India’s wrangling over Bhutan escalated

• China and India’s wrangling over Bhutan escalated amid accusations by Beijing that the alleged intrusion by Indian troops in the Sikkim sector was a “betrayal” of a former colonial-era understanding of the boundary alignment in this area.
• Adopting a shriller tone in demanding the pullback of Indian forces, from the Doklam area, where there has been a military standoff, the Chinese Foreign Ministry accused New Delhi of virtually manipulating Bhutan to “distort facts,” and engineering a “cover-up” for the “illegal entry” of its forces in its territory.
• As the war of words escalated, Foreign Ministry spokesperson GengShuang responded to remarks by Defence Minister Arun Jaitley that India of 2017 was different from what it was in 1962. 
• The Chinese allege that Indian troops have breached New Delhi’s well-recorded position of abiding by the 1890 British-era convention defining the boundary between Sikkim and Tibet.
• Besides, the boundary between China and Bhutan — a country with which India has special ties — has not been settled, despite 24 rounds of negotiations, which began in the 1980s between Beijing and Thimpu.
• The current round of border tensions was triggered by the construction of a road by China in the Doklam area. New Delhi has maintained that a road there will threaten its national security. 
• Analysts say that if built, the road will provide China further access to the Chumbi Valley, adding to the vulnerability of the “Chicken’s Neck”, a narrow corridor that links the northeast with the rest of India.

PM Modi advices young IAS officers to avoid getting into a mindset that resists change

• Prime Minister Narendra Modi advised young IAS officers to avoid getting into a mindset that resists change and fill India’s administrative system with the energy of “New India”.
• Addressing the IAS officers of 2015 batch at the inaugural session of Assistant Secretaries, the Prime Minister said India had not progressed as much as it should have.
• Mr. Modi said countries that achieved Independence after India, and faced greater resource constraints than India, had touched new heights of development.
• He said boldness was required to drive change, and added that a fragmented administrative arrangement would not allow the collective capabilities of officers to deliver to the optimum level.
• The Prime Minister said that the three-month programme of assistant secretaries, was now into its third year, and would have a great impact.
• The Prime Minister urged the young officers to interact freely with the senior officers of the Central government over the next three months, so that the system could benefit from the combination of their energy and fresh ideas, and administrative experience of Secretary-level officers.

Final agenda for PM Modi’s visit to Israel unveiled 

• The Israeli Foreign Ministry unveiled the final agenda for Prime Minister Narendra Modi’s historic visit to the West Asian nation.
• India and Israel will sign a unique Strategic Partnership on non-security issues including Agriculture, Water, Science, technology and Space, said Mark Sofer, Deputy Director General of the Israeli Foreign Ministry’s Asia-Pacific department.
• Strategic partnership means a lot of things… including first and foremost food security.
• Mr. Modi will receive protocol reserved only for the U.S. President and the Pope, as Mr. Netanyahu greets him at the airport for a welcome ceremony. Also present will be priests of different faiths including rabbis, imams and priests.
• Both leaders will then travel to the Danziger floriculture farm in a village community also called a “Moshav” not far from the airport. Mr. Modi will then pay respects at Israel’s holocaust memorial “YadVashem” in Jerusalem.
• Leaders and their delegations will have talks, and the signing of several agreements including that have been discussed over the past few months during visits by at least seven separate delegations from India, and will issue a joint statement.

::Business and Economy:: 

Government has allowed fertiliser companies to print revised MRP

• The government has allowed fertiliser companies to print revised maximum retail price (MRP) by including the new GST rate on existing unsold stocks of about 10 lakh tonnes, with some riders. 
• The companies have been given three months till September to clear the unsold stocks by stamping or printing the new retail price. 
• The Goods and Services Tax (GST) on fertilisers was reduced to 5% from 12% in the interest of farmers. The lower GST will bring down retail prices.

Government is keeping a close watch on implementation of GST

• The government is keeping a close watch on the day-to-day progress in the implementation of the Goods and Services Tax (GST) at the highest levels with Union Minister Arun Jaitley holding a review meeting.
• In a statement, the Finance Ministry indicated that such meetings would take place on a weekly basis.
• The government had asked all the departments to ensure that there was no shortage of products and consumer items in order to keep a check on prices, the statement added.
• Special emphasis was laid on keeping prices of essential commodities under check, the statement said.
• Mr. Sinha also asked the departments concerned to ensure that retailers, dealers and shopkeepers displayed a ready price list under GST of the items sold by them.
• The government, on its part, must ensure that the benefits of GST were passed on to the consumers so as to keep inflation in check, he said.

ADB and Govt of India signed loan agreement 

• The Asian Development Bank (ADB) and the Government of India signed a $220 million loan agreement meant to improve connectivity, transport efficiency, and safety on the State highways of Rajasthan.
• “The loan is the first tranche of the $500 million Rajasthan State Highways Investment Program, approved by ADB Board in May this year.
• That will upgrade about 2,000 km of State highways and major district roads to two-lane or intermediate-lane standards to meet road safety requirements,” the government said in a release.
• The first tranche loan will improve about 1,000 km of State highways and major district roads.

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