Current Affairs 17 May 2025

Content:

1. SC’s 3-month timeline in Governor verdict was adopted from Centre’s own guidelines
2. ASI completes conservation work in Lodhi-era stepwell
3. SC strikes down retrospective environmental clearances
4. FinMin undertaking parallel review of RBI buffers with eye on dividends’
5. U.N. snips outlook for India growth to 6.3% on global slowdown

SC’s 3-month timeline in Governor verdict was adopted from Centre’s own guidelines

Background Context

• Issue: Whether the Supreme Court can prescribe a time limit for the President to decide on Bills reserved by Governors under Article 201 of the Constitution.
• Trigger: The Tamil Nadu Governor case, where excessive delay was observed in presidential assent.
• Centre’s Objection: Filed a Presidential Reference, arguing that judicially imposing a timeline on the President lacks constitutional basis, as Article 201 is silent on time limits.

Relevance : GS 2(Polity ,Constitution)

Key Points from SC Judgment (April 8)

• Not a New Timeline: The three-month deadline was not judicial innovation but adopted from existing MHA guidelines (2016 OMs).
• Quote from Justice J.B. Pardiwala: “We deem it appropriate to adopt the timeline prescribed by the Ministry of Home Affairs…”

Details of the 2016 Office Memorandums (OMs)

1. OM 1 – On Timeliness (Feb 4, 2016)
   1. Main concern: “Undue delay” in President’s decisions on State Bills.
   1. Directive: Final decision on such Bills to be made within 3 months of receipt.
   1. Ministry-wise Coordination:
      1. Substantive issues → Relevant Central Ministry.
      1. Legal/constitutional issues → Ministry of Law.
      1. Ministries to respond in 15 days, or justify delay.
      1. Max delay for comment: 1 month – else deemed “no comment”.

• OM 2 – On Objections (Also Feb 4, 2016)
  • If any Ministry raises objections:
    • Must be shared with the State for reply/clarification.
    • State must respond within 1 month.
  • Purpose: Keep Centre informed and facilitate timely presidential decision.

SC’s Interpretation

• Article 201’s silence does not imply absence of accountability.
• Timeline adoption ensures constitutional expediency, not overreach.
• Guidelines reflect the Centre’s own executive understanding of timely action.
• Timelines promote constitutional federalism and avoid legislative paralysis at the State level.

Commissions Supporting Timeliness

• Sarkaria Commission: Recommended quick disposal of Article 201 matters.
• Punchhi Commission: Advocated for clear timelines in Centre–State interactions.

Conclusion

• SC Verdict: Judicially endorses existing administrative norms, not creating new law.
• Implication: Puts constitutional pressure on the President and Centre to act swiftly on reserved State Bills.
• Centre’s Challenge: Raises constitutional query on judicial limits, though the timeline originated from its own rules.

ASI completes conservation work in Lodhi-era stepwell

Overview of the Site

• Name: Rajon ki Baoli
• Era: 16th century, Lodhi period
• Location: Mehrauli Archaeological Park, New Delhi
• Significance: A historic stepwell (baoli) used for water conservation and community gathering.

Relevance : GS 1(Culture ,Heritage)

Collaborating Institutions

• Archaeological Survey of India (ASI) – Lead conservation agency.
• World Monuments Fund India (WMFI) – Provided heritage expertise.
• TCS Foundation – Supported the project as part of CSR.

Key Conservation Measures

• Cleaning and De-silting:
  • Stepwell cleared of accumulated debris and silt to restore water flow.

• Water Management:
  • Connected to proper drainage systems to prevent stagnation.
  • Fish introduced to maintain water quality naturally (bio-remediation).

• Material Integrity:
  • Used traditional materials like lime plaster and mortar.
  • Aimed to preserve the original architectural character of the Lodhi-era structure.

• Historical Accuracy:
  • Restoration work was guided by historical records and documentation.
  • Ensured authenticity of the design and features was retained.

Cultural and Environmental Value

• Cultural Heritage: Revives a medieval example of Indo-Islamic architecture and hydraulic engineering.
• Ecological Role: Stepwell acts as a micro water conservation system.
• Tourism & Education: Enhances the heritage appeal of Mehrauli Archaeological Park.

Conclusion

• The conservation of Rajon ki Baoli reflects a sustainable, heritage-sensitive approach combining traditional craftsmanship with modern conservation practices.
• Model for future restorations of historical water bodies and monuments.

SC strikes down retrospective environmental clearances

Core Verdict

• Retrospective (ex post facto) environmental clearances (ECs) are illegal, declared the Supreme Court.
• Held as “gross illegality” and against environmental jurisprudence.
• Court stressed that clearance must be obtained before starting or expanding any project.

Relevance : GS 3(Environmental Governance )

Case Background

• Petition filed by Vanashakti, an environmental NGO.
• SC invalidated the 2017 Notification and the 2021 Office Memorandum (OM) issued by the Centre allowing retrospective ECs.
• However, ECs already granted till date under these rules are protected and will not be undone.

Court’s Reasoning

• Ex post facto ECs undermine due environmental diligence:
  • Violate principles of precaution and environmental impact assessment (EIA).
  • Neglect environmental consequences before granting approvals.
• Retrospective clearance essentially regularises illegality—projects that started without prior EC are later approved.
• SC criticized the Centre’s “crafty drafting” to shield violators through legal loopholes.

Legal and Environmental Principles Emphasised

• Development cannot come at the cost of the environment.
• Referenced Common Cause (2017) judgment: prior EC is mandatory and non-negotiable.
• Environmental clearance must follow:
  • Detailed study
  • Public consultation
  • Regulatory oversight before approval.

Critique of Government Actions

• The 2021 Office Memorandum (OM) avoided the phrase “ex post facto”, but effectively allowed retrospective clearances.
• Government failed in its constitutional duty to protect and improve the environment (Article 48A and 51A(g)).
• “Development” must include environmental protection, not override it.

Implications of the Judgment

• Ends the practice of regularising illegal constructions through post-approval ECs.
• Reinforces the need for environmental accountability in urban planning and infrastructure.
• Strengthens the EIA framework and judicial commitment to environmental rule of law.

‘FinMin undertaking parallel review of RBI buffers with eye on dividends’

Core Issue

• The Finance Ministry is conducting a parallel review of the RBI’s Economic Capital Framework (ECF).
• Focus: Assess whether the Contingency Risk Buffer (CRB) maintained by RBI can be reduced to enable higher dividend transfers to the government.

Relevance : GS 3(Economy ,Banking)

Background

• Economic Capital Framework (ECF):
  • Determines how much capital the RBI must retain for financial stability.
  • Reviewed in 2018 by the Bimal Jalan Committee.
  • Recommended a CRB of 5.5–6.5% of RBI’s balance sheet.
• Dividend transfer: Amount over and above the CRB is transferred as surplus (dividend) to the government.

Government’s Motivation

• Higher transfers = More fiscal space for the Centre.
• Government reportedly aiming to increase defence expenditure amid rising security concerns (e.g., with Pakistan).
• Greater surplus would aid in meeting fiscal deficit targets or enhancing capital spending.

Current Developments

• Since January 2025, the RBI has been internally reviewing the ECF.
• Government is conducting a parallel, independent review of buffer norms.
• Official: Some believe the Jalan recommendations were too conservative, and there’s room to lower the buffer.

RBI’s Position

• RBI held its 615th central board meeting and reviewed the ECF.
• No formal decision announced yet, but outcome will influence surplus transfer.

Strategic Implications

• Lowering CRB:
  • Frees up more funds for government use, boosting fiscal flexibility.
  • But reduces the RBI’s cushion against economic/financial crises.
• Raises concerns about central bank autonomy vs. government fiscal needs.

Broader Context

• Similar tensions were seen in 2018–19 leading to friction between the RBI and Finance Ministry.
• ECF review is critical for:
  • Monetary policy independence
  • Crisis preparedness
  • Centre’s fiscal planning

U.N. snips outlook for India growth to 6.3% on global slowdown

Key Update by the U.N.

• The United Nations has lowered India’s GDP growth forecast to:
  • 6.3% in 2025 (calendar year)
  • 6.4% in 2026
• This is a 0.3 percentage point cut from previous projections.

Relevance : GS 3(Indian Economy)

Global Economic Context

• The cut aligns with slower global growth forecasts due to:
  • Rising trade tensions
  • Geopolitical risks
  • Policy uncertainty in major economies
• Global GDP now projected at:
  • 2.4% in 2025 (down 0.4%)
  • 2.5% in 2026 (down 0.4%)

India’s Growth Drivers (According to U.N.)

• India remains among the fastest-growing large economies.
• Growth supported by:
  • Resilient private consumption
  • Robust government spending
• Domestic demand cushions external headwinds.

Analytical Insights

• Despite the downgrade, India’s macroeconomic fundamentals remain strong relative to global peers.
• Caution for policymakers:
  • Global slowdown may impact exports, FDI, and capital flows.
  • Need to maintain fiscal prudence and monetary stability.
• Opportunities lie in:
  • Boosting domestic investments
  • Strengthening trade partnerships amid global realignments.

Implications for India

• Lower global growth may challenge India’s export-led sectors.
• But India’s growth remains consumption-driven, offering resilience.
• Important for India to focus on:
  • Sustaining public capex
  • Job creation
  • Mitigating inflation risks