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Writer's pictureCLAT FOCUS CA Team

Important Current Affairs for CLAT-12th August 2023

NCLT Approves $10 Billion Mega-Merger Between Zee and Sony

The National Company Law Tribunal (NCLT) has given the green light to the merger between India’s prominent entertainment company, Zee Entertainment Enterprises, and Culver Max Entertainment (formerly known as Sony Pictures Networks India or SPNI).

The favorable verdict paves the way for an exciting phase of integration and transformation in the Indian entertainment industry. (Securities and Exchange Board of India) SEBI is expected to deliver its final decision on the matter on 14th of August.

Merger Approval and Integration Roadmap

The decision was handed down by the panel led by Justice HV Subba Rao alongside member Madhu Sinha. With this approval in hand, Zee Entertainment Enterprises and Culver Max Entertainment are ready to kickstart the integration process in the upcoming week.

A crucial step in this journey involves ZEE filing with the registrar of companies within a 30-day window. While an official timeline for completion has yet to be announced, seasoned mergers and acquisitions experts anticipate a potential conclusion around mid-November.

Reshaping the Entertainment Landscape with the Merged Entity

The merged entity is poised to reshape the landscape of the entertainment industry. The collaborative strength of these two industry titans holds the potential to inaugurate a fresh era of exceptional entertainment, captivating audiences and molding the trajectory of India’s prominent entertainment realm. This transformation extends beyond a mere redefinition of industry dynamics.

The Role of the National Company Law Tribunal (NCLT) in India

The National Company Law Tribunal, functioning as a quasi-judicial entity in India, holds the responsibility of adjudicating matters concerning Indian corporations. Instituted on 1 June 2016 by the Indian government under the provisions of the Companies Act 2013, this tribunal possesses the jurisdiction to resolve both cases that were previously under consideration by the Board for Industrial and Financial Reconstruction (BIFR) and those awaiting resolution under the Sick Industrial Companies (Special Provisions) Act, 1985.

New Bill Proposes Changes in Appointment Process for Election Commissioners in India

The central government of India has recently introduced a bill in the Rajya Sabha that aims to modify the process of appointing the Chief Election Commissioner and other Election Commissioners of the country. The proposed bill includes significant changes to the composition of the selection committee responsible for these appointments.

Exclusion of Chief Justice of India from the Selection Panel

One of the notable changes proposed by the bill is the removal of the Chief Justice of India from the selection committee that determines the appointments of the Chief Election Commissioner and other Election Commissioners. This alteration is seen as a departure from the previous arrangement and has sparked discussions about the implications for the independence of the Election Commission.

New Composition of the Selection Panel

According to the provisions outlined in the new bill, the selection panel responsible for appointing the Chief Election Commissioner and Election Commissioners will now consist of three members:

  1. Prime Minister: The head of the government, responsible for executive decision-making.

  2. Leader of Opposition in Lok Sabha: A prominent figure representing the opposition parties in the lower house of Parliament.

  3. Cabinet Minister: A member of the government’s cabinet, entrusted with specific administrative responsibilities.

Background and Rationale

The bill’s introduction follows a significant ruling by the Supreme Court in March, aimed at ensuring the impartiality and autonomy of the Election Commission. Prior to this ruling, appointments to the Election Commission were made based on the government’s recommendations and were ultimately approved by the President.

The Supreme Court’s decision outlined a selection process involving the Prime Minister, the Leader of Opposition in the Lok Sabha, and the Chief Justice of India. However, the new bill seeks to redefine this process, emphasizing the roles of the Prime Minister, Leader of Opposition, and a Cabinet Minister while omitting the Chief Justice of India.

Criticism and Response

The proposed bill has attracted criticism from various quarters, with the Congress party being particularly vocal in its opposition. The Congress has labeled the bill as an overt attempt to diminish the Election Commission’s autonomy and transform it into a tool controlled solely by the Prime Minister.

Legislative Intent

The Chief Election Commissioner and other Election Commissioners (Appointment Conditions of Service and Term of Office) Bill, 2023, has been tabled for consideration in the Rajya Sabha. Union Law Minister Arjun Ram Meghwal is spearheading this legislative effort, aiming to “regulate the appointment, conditions of service and term of office of the Chief Election Commissioner and other Election Commissioners, the procedure for transaction of business by the Election Commission and for matters connected therewith or incidental thereto”.

Government Employee Unions Rally for Pension Rights in Delhi

Government employee unions have organized a massive rally in Delhi, named the “Pension Rights Maharally,” to voice their demand for the reinstatement of the Old Pension Scheme. The rally was orchestrated by the Joint Forum for Restoration of Old Pension Scheme (JFROPS)/National Joint Council of Action (NJCA), representing central and state departments’ employees. The event took place at Ramlila Maidan on August 10.

Wide Participation

The rally garnered participation from a diverse range of employees, including those from central and state departments, railways, public sector undertakings (PSUs), teaching professionals, defense personnel, and ex-paramilitary personnel from across the nation. This significant turnout highlighted the widespread concern regarding the pension scheme issue.

Critique of New Pension Scheme (NPS)

Shiv Gopal Mishra, the NJCA’s national convener and the general secretary of All India Railway Men’s Federation (AIRF), addressed the media during the rally. He emphasized the dissatisfaction among employees who entered government service after January 1, 2004, due to their strong opposition to the New Pension Scheme (NPS). The primary contention lies in the uncertainty faced by employees under the NPS upon retirement, contrasting with the more secure Old Pension Scheme.

Jeopardized Future and Old Age Support

Mishra underscored that the introduction of the New Pension Scheme has put the future and old age support of millions of employees at risk. This concern prompted the establishment of the Joint Forum for Restoration of Old Pension Scheme (JFROPS)/NJCA. The group’s efforts have encompassed various forms of protests, from demonstrations at the state level to torch processions at Jantar Mantar in Delhi.

Appeals and Memorandums

In their pursuit of reclaiming the Old Pension Scheme, the unions have presented memorandums to district officials, governors, cabinet secretaries, and even Prime Minister Narendra Modi. These appeals aim to draw attention to the gravity of the matter and the potential ramifications on employees’ lives.

Demands and Warnings

Mishra expressed the unions’ viewpoint, asserting that employees who dedicate their careers to the service of their organization and country should not be denied adequate support in their old age. He characterized this as a fundamental right and urged the government to promptly reinstate the Old Pension Scheme. Mishra also cautioned that if the government fails to respond to their demand, the unions could resort to a “Bharat Bandh” (nationwide strike), which would bring the entire nation to a halt. In such a scenario, he emphasized that the government would bear sole responsibility for the consequences.

The Bharatiya Sakshya Bill, 2023: Revamping India’s Criminal Justice System

Union Home Minister Amit Shah introduced three new bills in Lok Sabha to reform the criminal justice system in India. Among these bills is the Bharatiya Sakshya Bill, which aims to replace the outdated Indian Evidence Act of 1872. This move is in response to the need for legal reforms that align with technological advancements and societal changes.

Purpose and Scope of the Bharatiya Sakshya Bill, 2023:

The Bharatiya Sakshya Bill, 2023, seeks to consolidate and establish general rules and principles of evidence to ensure a fair trial in criminal cases. The current Indian Evidence Act is outdated and lacks provisions that cater to the modern landscape. The new bill aims to rectify this by modernizing the laws surrounding evidence and aligning them with the current needs and aspirations of the populace.

Replacements of Other Laws:

In addition to the Bharatiya Sakshya Bill, two other bills have been introduced: the Bharatiya Nyaya Sanhita, 2023, which will replace the Indian Penal Code (IPC), and the Bharatiya Nagarik Suraksha Sanhita, 2023, which will replace the Criminal Procedure Code (CrPC). These bills collectively aim to revamp the legal framework pertaining to criminal justice.

Key Provisions and Changes in the Bharatiya Sakshya Bill, 2023:

  1. Admissibility of Electronic Records: The new bill makes electronic or digital records admissible as evidence, endowing them with the same legal weight as traditional paper documents.

  2. Repeal, Modification, and Addition of Provisions: The Bharatiya Sakshya Bill repeals five existing provisions of the old Evidence Act, modifies 23 provisions, and introduces one entirely new provision, resulting in a total of 170 sections.

  3. Scope Expansion for Secondary Evidence: The bill broadens the scope of secondary evidence, allowing for the inclusion of copies produced through mechanical processes, counterparts of documents, and oral accounts of document contents.

  4. Precise and Uniform Rules: One of the primary objectives of the bill is to establish precise and uniform rules governing the handling of evidence during the trial of criminal cases.

Rationale for the Bharatiya Sakshya Bill:

The government’s motivation behind introducing the Bharatiya Sakshya Bill stems from the observation that the current Indian Evidence Act is inadequate to address the technological advancements and societal shifts that have occurred over the past decades. By replacing the outdated law with a modern and comprehensive bill, the government aims to ensure that evidence-related regulations are in line with contemporary requirements.

India Aims to Triple Natural Gas Share to 15% by 2030: Minister

India is embarking on a bold journey to significantly enhance its current 6% share of natural gas within its energy mix to a robust 15% by the year 2030. This audacious endeavor is being spearheaded by Rameswar Teli, the Minister of State in the Ministry of Petroleum & Natural Gas. The government is resolutely pursuing an array of far-reaching strategies to realize this vision, as elaborated by the minister in a written response to the Lok Sabha.

Strategic Steps to Achieve the 2030 Target

The government’s multifaceted approach to achieving a 15% natural gas share in the energy amalgamation by 2030 encompasses a series of strategic actions:

  1. Expansion of National Gas Grid Pipeline: A pivotal step involves the expansion of the National Gas Grid Pipeline, creating an extensive network for efficient distribution of natural gas across the nation.

  2. City Gas Distribution (CGD) Network Enhancement: The expansion of the City Gas Distribution network is another cornerstone of the strategy. This initiative ensures that urban and suburban areas have accessible and reliable sources of natural gas.

  3. Liquefied Natural Gas (LNG) Terminals Establishment: Setting up LNG Terminals is a crucial aspect, facilitating the import and storage of liquefied natural gas to meet the growing demand.

  4. Domestic Gas Allocation for CNG and PNG: The government is dedicated to ensuring a steady supply of domestic gas for Compressed Natural Gas (CNG) in the transportation sector and Piped Natural Gas (PNG) for domestic usage. This allocation is classified as “no cut,” ensuring stability.

  5. Market and Pricing Freedom for Specific Gas Sources: The government’s forward-looking stance includes granting marketing and pricing freedom to gas extracted from high-pressure/high-temperature areas, deep water, ultra-deep water, and coal seams. This promotes exploration and utilization of diverse gas sources.

  6. Promotion of Bio-CNG through SATAT: The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative takes center stage in promoting Bio-CNG, a sustainable and eco-friendly alternative for transportation fuel.

Strategic Partnerships for LNG Supply

Recent achievements mark significant milestones in India’s pursuit of a heightened natural gas share:

  • Indian Oil’s Agreement with Total Energies: On July 10th, Indian Oil solidified a crucial agreement with Total Energies Gas and Power. This pact entails the supply of up to 0.8 million metric tonnes per annum (MMTPA) of LNG for a decade, commencing in 2026. The LNG will be sourced from Total Energies’ portfolio.

  • Indian Oil’s Collaboration with ADNOC LNG: Another significant pact was established on July 13th between Indian Oil and Abu Dhabi Gas Liquefaction Company Ltd. (ADNOC LNG). This strategic collaboration involves the supply of up to 1.2 MMTPA of LNG over a span of 14 years, beginning in 2026.

Indian Economy to Grow at 6% in FY24, Say NIPFP Researchers

In a recent mid-year macroeconomic review, the National Institute of Public Finance and Policy (NIPFP) has forecasted that India’s economic growth will likely decelerate to 6% in the financial year 2023-24 (FY24), down from the 7.2% recorded in FY23. This projected slowdown is attributed to prevailing headwinds in the global economy. The NIPFP analysis takes into consideration various economic indicators and trends, offering valuable insights into the potential trajectory of India’s economy.

Sectoral Performance in Q1

  • The review highlights a robust industrial sector performance in the first quarter (Q1), particularly in the construction and consumer non-durables segments.

  • However, the agricultural sector’s growth remained subdued, and the services sector experienced sluggish growth during the same period.

Inflation Outlook and Monetary Policy

  • The review indicates that retail inflation is forecasted to remain below the 6% limit at 5.1% for the current financial year.

  • This lower inflation projection is attributed to the delayed effects of monetary policy transmission and a broad-based decline in food, energy, and core inflation.

  • The inflation outlook holds significance in influencing monetary policy decisions and shaping consumer sentiments.

Reserve Bank of India’s (RBI) Perspective

  • The RBI maintains its real GDP forecast for FY24 at 6.5% in its recent assessment.

  • The projection is based on expectations of heightened rural and urban growth, increased investment activities, and the government’s commitment to higher capital expenditure.

  • The central bank, however, revises its inflation estimates, anticipating an inflation rate of 5.4% for FY24.

  • The quarterly breakdown of inflation predicts figures of 6.2% for Q2, 5.7% for Q3, and 5.2% for Q4, respectively.

  • The RBI’s stance provides insights into India’s economic prospects from a monetary policy standpoint.

Global Economic Context

  • The NIPFP’s projection of a 6% growth rate for FY24 is influenced by the broader global economic conditions.

  • External factors such as shifts in global trade dynamics, commodity price fluctuations, and uncertainties related to pandemic recovery collectively shape India’s economic performance.

CM Solar Mission launched in power deficit Meghalaya

In a significant step towards harnessing renewable energy and reducing power deficits, Meghalaya Chief Minister Conrad K Sangma launched the Chief Minister’s Solar Mission, a pioneering initiative aimed at ushering in a new era of green progress for the north eastern hill state.

The mission, backed by an investment of Rs 500 crore from the government over the next five years, is set to transform the state’s energy landscape and contribute to its sustainable development.

Financial Support and Ambitious Expansion: Cornerstones of the CM Solar Mission

The state government has allocated an annual investment of Rs 100 crore to kickstart the solar mission. Additionally, plans are underway to attract diverse funding partners, including contributions from corporate social responsibility, carbon credits, and international organizations sharing the vision of sustainable energy.

This aggressive expansion plan is set to be supported by net metering, which will allow higher capacity hybrid solar units to feed energy into both local and national grids. The subsidy structure is designed to encourage a broad range of beneficiaries, with individual households eligible for a 70% subsidy and schools, hospitals, hotels, and commercial entities qualifying for a 50% subsidy.

Beyond Solar: LED Assembling and Battery Manufacturing

In addition to the solar mission, Chief Minister Sangma unveiled plans for setting up LED assembling units across the state, providing employment opportunities for the youth and advancing self-reliance.

Moreover, discussions are underway with battery manufacturers to establish battery production and maintenance facilities within Meghalaya. These initiatives further contribute to the state’s overall goal of achieving energy sustainability and promoting local economic growth.

Hydel Challenges and the Path Forward

Meghalaya’s current power generation is predominantly hydel-based, relying on river water for energy production. However, variations in rainfall can impact hydel power generation, leading to deficits during dry periods. The state’s installed hydel power capacity stands at 378.7 MW, with peak demand exceeding 500 MW. The Chief Minister’s Solar Mission aims to bridge this gap and create a more reliable and sustainable energy ecosystem.


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