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PRS Capsule

PRS Capsule

PRS Capsule - November 2024

  • 19 Dec 2024
  • 7 min read

Key Highlights of PRS 

  • Polity and Governance 
    • Supreme Court Issues Directives on Demolition of Properties of Accused Individuals 
    • Supreme Court Rules that Government Entities Cannot Unilaterally Appoint Arbitrators  
    • Draft Bill Issued to Replace Law on MPs Holding an Office for Profit 
    • Cabinet Approves Scheme to Provide Financial Support to Meritorious Students 
  • Economy 
    • Industrial Production Grew by 2.6% in the Second Quarter of 2024-25  
    • Cabinet Approves Launch of National Mission on Natural Farming 

 Polity and Governance 

Supreme Court Issues Directives on Demolition of Properties of Accused Individuals  

  • The Supreme Court ruled that demolishing the properties of citizens without following the due process of law, for the sole reason that they may be involved in a crime, is contrary to the rule of law. 
  • The Court also issued directives that must be complied with before the properties are demolished.  
    • The Court held that before deciding on demolition, the concerned authority (municipal body or state-designated body) must satisfy itself that demolition is the only available option.  
      • This includes identifying that options such as compounding and part-demolition of property are not available.  
    • The affected party must be given a prior notice of at least 15 days.  
    • The notice should specify the nature of unauthorised construction and the grounds for demolition.  
    • The Court, however, clarified that these directions will not apply to unauthorised structures in public places, or if the demolition is ordered by a court of law. 

 Supreme Court Rules that Government Entities cannot Unilaterally Appoint Arbitrators  

  • A five-judge bench of the Supreme Court ruled that government entities and Public Sector Undertakings (PSUs) cannot unilaterally appoint arbitrators in public-private arbitration agreements.  
    • It held that such clauses violate equality and equal protection before the law (Article 14).  
    • The Court held that the principle of equal treatment of parties applies to all stages of arbitration, including the appointment of an arbitrator.  
    • It further held that allowing one party to unilaterally appoint an arbitrator raises questions about the impartiality of the arbitrator.  
      • This also hinders the other party from equally participating in dispute resolution. 

Draft Bill Issued to Replace Law on MPs Holding an Office for Profit  

  • The Ministry of Law and Justice issued the draft Parliament (Prevention of Disqualification) Bill, 2024. 
  • The draft Bill seeks to replace the Parliament (Prevention of Disqualification) Act, 1959. 
  • Key features of the draft Bill include: 
    • The draft Bill adds a faculty or senior member of a university to the list of offices that are exempt from disqualification.  
    • It also lists offices whose members are exempted from disqualification.  
    • The draft Bill removes the list of offices not exempt from disqualification, which is included in the Act. 
    • The draft Bill empowers the central government to amend the list of offices exempt from disqualification. 
    • The draft Bill removes the Act's provision that prevents an MP's disqualification if they held an office previously exempt but later reversed, provided they resign within six months. 

Cabinet Approves Scheme to Provide Financial Support to Meritorious Students  

  • The Union Cabinet approved the PM Vidyalakshmi scheme to financially support meritorious students in pursuing higher education. 
  • The scheme will extend collateral and guarantor-free loans covering tuition and other expenses to students who get admission to quality higher education institutions.  
  • For loans up to Rs 7.5 lakh, 75% of the outstanding amount will be covered by a credit guarantee.  
  • The scheme will apply to students in: 
    • Top 100 institutions in each field 
    • State government institutions ranked 101-200 
    • All central government institutions.  
  • Rankings would be based on the National Institutional Ranking Framework (NIRF).  
  • Further, the scheme will provide interest subvention of 3% on loans up to Rs 10 lakh to students with a family income of up to eight lakh rupees 

 Economy 

Industrial Production Grew by 2.6% in the Second Quarter of 2024-25  

  • The Index of Industrial Production (IIP) grew by 2.6% in the second quarter (July-September) of 2024-25, lower than the growth in the same period last year (7.8%). 
    • The mining sector contracted by 0.1% in the first quarter of 2024-25.  
    • In the first quarter of 2024-25, manufacturing increased by 3.1%, while electricity increased by 1.4%.  
  • Manufacturing (78%) has the highest weightage in the calculation of the IIP, followed by mining (14%) and electricity (8%). 

 Cabinet Approves Launch of National Mission on Natural Farming  

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