Recent Amendments

Amendments in Arms Act, 1959 and Arms Rules, 2016 notified

Amendments in Arms Act, 1959 and Arms Rules, 2016 notified.

Overview– key changes:

As per the new rules, now International medallists/renowned shooters are allowed to keep additional weapons up to a total of twelve under the exempted category, which earlier was seven.
If a shooter is renowned in one event, he/she can keep maximum eight (previously it was four), if a shooter is renowned in two events he/she can keep maximum ten (previously it was seven) and if a shooter is renowned in more than two events, he/she can keep maximum twelve (previously it was seven) firearms under the exempted category.
Junior target shooters/aspiring shooters are now allowed to possess two weapons (previously one) of any category in which the person is engaged.
Apart from the above exemptions, shooters are entitled to possess two firearms as normal citizens under provisions of the Arms Act, 1959.
Similarly, by amending the provision under Rule 40 of the Arms Rules, 2016 the quantity of ammunition that can be purchased by the shooters during the year for the practice has also been increased considerably.
Through these amendments, it has also been clarified that no licence is required for Indian citizens for acquisitions, possession of small arms falling under the category of curio.
However, appropriate licence as prescribed would be required for use or to carry or transport such small arms.
Without the endorsement of such firearms in the prescribed licence of the owner, no ammunition shall be sold for their use.

About the Arms (Amendment) Bill, 2019:

It seeks to enhance the punishment for existing offences like illegal manufacture, sale, transfer, etc.; illegal acquiring, possessing or carrying prohibited arms or prohibited ammunition; and illegal manufacture, sale, transfer, conversion, import, export, etc., of firearms.
It also proposes to define new offences and prescribes punishment for them, such as taking away firearms from police or armed forces, involvement in organized crime syndicate, illicit trafficking including smuggled firearms of foreign make or prohibited arms and prohibited ammunition, use of firearms in rash and negligent manner in celebratory gunfire endangering human life, etc.
It seeks to enhance the period of arms license from three years to five years and also to issue arms license in its electronic form to prevent forgery.

IBC Bill discriminates against homebuyers

The report on the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 was tabled by the Standing Committee on Finance in Parliament recently. Three committee members said the IBC Bill was discriminatory as it does not treat homebuyers on a par with other financial creditors and violates a Supreme Court ruling,

What’s the issue?

The Bill has introduced a new clause that sets a threshold of 100 homebuyers, or 10% of the buyers, in a residential project, whichever is less, as a requirement to jointly take the developer to an insolvency court. This means that an individual homebuyer, who is a financial creditor, cannot file an insolvency application.

Key Highlights Of Insolvency And Bankruptcy (Second Amendment) Bill, 2019:

Section 11 of the Code has been amended to clarify that a corporate debtor shall not be prevented from initiating CIRP against any other corporate debtor.
Section 16 of the Code has been amended to provide that an insolvency resolution professional should be appointed on the date of admission of the application for initiation of Corporate Insolvency Resolution Process (CIRP).
Section 23 of the Code has been amended to enable the resolution professional to manage the affairs of the corporate debtor during interim period between the expiry of CIRP till the appointment of a liquidator;
A new Section 23A has been inserted to provide that the liability of a corporate debtor for an offence committed prior to the commencement of the CIRP shall cease under certain circumstances.

Effects of the amendment:

The amendment brings the much awaited changes needed in the insolvency sector. It clears the air on various aspects and provides relief to both corporate debtor as well as the creditors. The thresholds introduce will prevent admission of unnecessary cases to the insolvency court. However, even after anticipation, cross border insolvency framework has not been included in the amendment. Now, the same is expected to get cleared in the next session.

Amendments to the Information Technology (IT) Act

Context: The Ministry of Electronics and Information Technology is in the process of amending the Information Technology (Intermediaries Guidelines) Rules, 2011, to make the social media platforms more responsive and accountable. The rules are being finalised.

The government had first released the draft for proposed amendments to the IT Act in December 2018, inviting public comments.

Background:

In December 2018, to crack down on spread of fake news and rumours circulated on online platforms like WhatsApp, Facebook and other online platforms, the central government has proposed stringent changes under the draft of Section 79 of the Information Technology (IT) that govern online content.

Implications:

The proposed amendments in the draft of the Information Technology [Intermediaries Guidelines (Amendment) Rules] 2018, Rule 3(9) is bound to force social media platforms like Whatsapp, Facebook and Twitter to remain vigil and keep users on their toes before posting or sharing anything that is deemed as “unlawful information or content”.

The changes proposed by the central government is aimed at curbing fake news or rumours being spread on social media and check mob violence ahead.

What the new rules propose?

The changes will require online platforms to break end-to-end encryption in order to ascertain the origin of messages.
The social media platforms to “deploy technology based automated tools or appropriate mechanisms, with appropriate controls, for proactively identifying or removing or disabling access to unlawful information or content”.
As per the amendment, the social media platforms will need to comply with the central government “within 72 hours” of a query.
There should be a ‘Nodal person of Contact for 24X7 coordination with law enforcement agencies and officers to ensure compliance.
The social media platforms will be keeping a vigil on “unlawful activity” for a period of “180 days”.

What necessitated this?

With concerns over “rising incidents of violence and lynching in the country due to misuse of social media platforms”, there is now need for online platforms to shoulder the “responsibility, accountability and larger commitment to ensure that its platform is not misused on a large scale to spread incorrect facts projected as news and designed to instigate people to commit crime”.

Criticisms:

The proposed changes have once again given rise to a debate on whether the government is intruding into the privacy of individuals, evoking sharp response from opposition parties. Similar apprehensions were raised with the Section 66A of the IT Act that enabled authorities to arrest users for posting content which was termed as offensive. However, the Supreme Court on March 24, 2015, struck down the law.

Need for stringent measures:

India has the second highest number of internet users in the world after China, an estimated 462.12 million. Among them, 258.27 million were likely to be social network users in the country in 2019.

Major Port Authorities Bill, 2020

Context: Major Port Authorities Bill 2020 Introduced in The Loksabha.

Aims and objectives:

Decentralise decision making and infuse professionalism in governance of major ports.
Impart faster and transparent decision making benefiting the stakeholders and better project execution capability.
Reorient the governance model in central ports to landlord port model in line with the successful global practice.

Implications:

The bill will replace the Major Port Trusts Act, 1963.

This will empower the Major Ports to perform with greater efficiency on account of full autonomy in decision making and by modernizing the institutional framework of Major Ports.

The salient features of the Major Port Authorities Bill 2020 are:

Compared to the Major Port Trusts Act, 1963 the bill reduces the number of sections to 76 from 134 by eliminating overlapping and obsolete Sections.
Simplified composition of the Board of Port Authority which will comprise of 11 to 13 Members from the present 17 to 19 Members representing various interests.
Provision has been made for inclusion of representative of State Government in which the Major Port is situated, Ministry of Railways, Ministry of Defence and Customs, Department of Revenue as Members in the Board apart from a Government Nominee Member and a Member representing the employees of the Major Port Authority.
Tariff Authority for Major Ports (TAMP) has now been given powers to fix tariff which will act as a reference tariff for purposes of bidding for PPP projects. PPP operators will be free to fix tariff based on market conditions.
An Adjudicatory Board has been proposed to be created to carry out the residual function of the erstwhile TAMP for Major Ports, to look into disputes between ports and PPP concessionaires, to review stressed PPP projects and suggest measures to review stressed PPP projects.
The Boards of Port Authority have been delegated full powers to enter into contracts, planning and development, fixing of tariff except in national interest, security and emergency arising out of inaction and default.
The Board of each Major Port shall be entitled to create specific master plan in respect of any development or infrastructure established or proposed to be established within the port limits and the land appurtenant thereto and such master plan shall be independent of any local or State Government regulations of any authority whatsoever.
Provision has been made for safeguarding the pay & allowances and service conditions including pensionary benefits of the employees of major ports and Tariff of Major Ports.

What is landlord model?

In the landlord port model, the publicly governed port authority acts as a regulatory body and as landlord while private companies carry out port operations—mainly cargo-handling activities.
Here, the port authority maintains ownership of the port while the infrastructure is leased to private firms that provide and maintain their own superstructure and install own equipment to handle cargo.
In return, the landlord port gets a share of the revenue from the private entity.
The role of the landlord port authority would be to carry out all public sector services and operations such as the award of bids for cargo terminals and dredging.

Need:

Currently, most major port trusts in India carry out terminal operations as well, resulting in a hybrid model of port governance.
The involvement of the port authorities in terminal operations leads to a conflict of interest and works against objectivity.
The neutrality of the landlord port authority is a basic requirement for fair competition between port service providers, particularly the terminal operators.

Mineral Laws (Amendment) Bill 2020

Context: The Lok Sabha has given its nod to the Mineral Laws (Amendment) Bill.

The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and the Coal Mines (Special Provisions) Act, 2015 (CMSP Act).

Under the Bill:

Allocation of coal/lignite blocks for composite prospecting licence cum mining lease has been provided.
Requirement of previous approval in cases where allocation of blocks was made by Central Govt has been dispensed with.
Removal of restriction on end-use of coal: Companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by the central government.
Transfer of statutory clearances to new bidders: The Bill provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.During this period, the new lessee will be allowed to continue mining operations.
Advance action for auction: Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period. The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.

Significance:

This will speed up the process of implementation of projects, ease of doing business, simplification of procedure and benefit all the parties in areas where minerals are located.

Background:

In 2018, the government had allowed commercial mining by private entities but non-coal companies couldn’t participate in the auction.
In August 2019, the government announced 100 per cent foreign direct investment (FDI) under the automatic route in coal mining for open sale, besides creating associated infrastructure, such as washeries.

Implications of this move- significance:

This opens up the sector to players outside steel and power as well as removes end-use restrictions.
It will create an efficient energy market and bring in more competition as well as reduce coal imports. India imported 235 million tonnes (mt) of coal last year, of which 135 mt valued at Rs 171,000 crore could have been met from domestic reserves.
It might also put an end to Coal India Ltd’s monopoly in the sector.
It would also help India gain access to high-end technology for underground mining used by miners across the globe.

New mining target:

In 2018, the government allowed commercial mining by private entities and set a mining target of 1.5 billion tonnes by 2020. Out of this, 1 billion tonnes was set to be from Coal India, while 500 million tonnes was to be from non-Coal India entities. This target has now been revised to 1 billion tonnes by 223-24.

Who grants permission for mining?

The state governments grant permission for mining, known as mineral concessions, for all the minerals located within the boundary of the state, under the provisions of the Mines and Minerals (Development and Regulation) Act, 1957 and Mineral Concession Rules, 1960.

However, for minerals specified in the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, Central government approval is necessary before granting the mineral concession.

Minerals specified under the First Schedule include hydrocarbons, atomic minerals and metallic minerals such as iron ore, bauxite copper ore, lead precious stones, zinc and gold.