Daily Current Capsules - 10^th August 2019

Parliament passes Consumer Protection Bill

Relevance IN - Prelims ( about the new provisions of consumer protection bill 2019) + Mains ( GS II government policies and interventions)
What's the NEWS

• Parliament passed the Consumer Protection Bill 2019 that seeks to establish authorities for timely and effective administration and settlement of consumer disputes.
• The Bill, already passed by Lok Sabha, was approved in the Upper House by voice vote. It seeks to strengthen rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services.

Know! the provisions of the bill

• The bill seeks to establish a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights.
• It strengthen the rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services.
• Under the Bill, celebrities endorsing misleading ads are also liable for fine.
• If a product is found faulty, instead of earlier individual examination, the entire batch would be examined.
• On maximum retail price (MRP), it should be displayed prominently on products apart from date of expiry, date of manufacturing and complaints redressal mechanism.
• There is no concept of levying a service charge globally and the government advised restaurants to make it voluntary.
• Since 90 per cent of cases are coming to district consumer commissions, the compensation have been increased to Rs one crore and Rs 10 crore for state level commissions, while the compensation for above Rs 10 crore has been kept for national commission ensuring that legislations should be properly scrutinised.
• The bill proposes setting up of Consumer Disputes Redressal Commission and forums at the district, state and national levels for adjudicating consumer complaints.

Know! more about the new authority

• It also seeks to set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights as a class.
• The CCPA would make interventions to prevent consumer detriment arising from unfair trade practices. The agency can also initiate class action, including enforcing recall, refund and return of products.

The contentious issues in the bill

• There is a provision in the bill wherein members of the state and district level consumer disputes redressal forums will be appointed by the central government, "usurping the powers of the state".
• The disputes redressal forums proposed in the bill do not have members from judiciary. "How can it be called a quasi-judiciary body? It is a pseudo-judiciary body
• This a "sabotage of federalism and centralisation of powers" and added that even state's powers to frame rules has been snatched away.
• It challenges the federalism as members of the state and district forums will be appointed in consultation with the central government.
• The bill has not been drafted in a "simple language" for the benefit of consumers. The definition of consumer rights is written in a complicated way

Alternative Dispute redressal mechanism
India signs UNISA; experts call for local laws supporting treaty

Relevance IN - Prelims( about UNISA and about mediation as alternative dispute redressal mechanism) + Mains ( GS II international organisations)
What's the NEWS

• India signed a key UN convention on international settlement agreements, even as experts called for local laws to support the treaty's implementation in business contracts.

Know! more about it

• The United Nations Convention on International Settlement Agreements (UNISA) was signed by India's High Commissioner to Singapore Jawed Ashraf, representing the Government of India. 46 countries signed the treaty named Singapore Convention on Mediation.

Know! the Benefits of signing UNISA

• The singing of the convention is particularly important for the growth of mediation in India
• India has adopted this (convention) and with that we have significantly enhanced the ease of doing business in India
• On the ease of doing business, as for the legal front, we are up by 50 per cent just by signing this convention and it is a dramatic jump
• But this is just a base convention that will have to be translated into an effective law in India
• To further boost foreign investors' confidence in the Indian market, the law supporting the convention in India should cover all government contracts with investors for mediation both in India and in a third country choice of disputing parties.
• The mediator community to grow exponentially, given the need to have a mitigation department in every law firm.
• With contract-based businesses set to boost the Indian economy to the USD 5 trillion target, foreign companies would be asking legal groups about their mediation capabilities
• South Asia constitutes one of the largest markets for international arbitrations under the Singapore International Arbitration Centre (SIAC), which is dominated by disputes from Indian businesses.

Know! more about UN Convention on International Settlement Agreement (UNISA)

• It is also known as Singapore Convention on Mediation. In December 2018 UN General Assembly (UNGA) adopted The United Nations Convention on International Settlement Agreements Resulting from Mediation.
• It provides uniform framework for enforcing international settlement agreements which results from mediation.
• It also provide efficient framework for allowing parties to invoke such agreements similar to framework that New York Convention (or Convention on Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) provides for arbitral awards.

Parliament Functioning
President Ram Nath Kovind gives assent to Motor Vehicles (Amendment) Bill
Relevance IN - Prelims ( about the new and stringent provisions of motor vehicle act)
What's the NEWS

• President Ram Nath Kovind gave his assent to the Motor Vehicles (Amendment) Act, 2019.
• The Motor Vehicles (Amendment) Bill, 2019 was passed by the Rajya Sabha on July 31, 2019. The bill was passed in the upper house with three key amendments so it had to be sent back to the Lok Sabha for approval.
• The introduced amendments aim to improve road safety and help citizens in their dealings with transport departments.
• The amendments also aim to strengthen rural transport, public transport and last mile connectivity through automation, computerization and online services.
• The Motor Vehicles (Amendment) Act, 2019 will increase the fine on most traffic violations by almost 10 times.

Know! the key amendments Motor Vehicles (Amendment) Bill, 2019

• The Bill proposes to increase penalties for traffic violations to act as a future deterrent.
• It proposes stricter provisions for offences such as drunken driving, juvenile driving, driving without licence, over-speeding, dangerous driving and overloading.
• It also proposes stricter provisions for driving without helmets. The bill also includes provisions for electronic detection of traffic violations.
• The penalty for motor vehicles is proposed to be increased by 10 percent every year.
• The Bill includes a provision that mandates automated fitness testing for vehicles.
• This proposal would help reduce corruption in the transport department and improve road worthiness of the vehicle.
• The motor vehicles bill also proposes penalty for deliberate violation of safety and environmental regulations.
• The bill proposes regulation of the process of testing and certification of automobiles and it also proposes to bring agencies issuing automobile approvals to be brought under the Motor Vehicles Act, 1988 and vehicle testing standards to be set. The bill also provides for mandatory recall of defective vehicles.
• The Motor Vehicles (Amendment) Bill, 2019 provides for the setting up of a National Road Safety Board by the central government.
• The National Road Safety Board will be required to advise the central and state governments on all aspects of road safety and traffic management including registration and licensing of vehicles, standards of motor vehicles, standards for road safety and promotion of new vehicle technology.
• The bill incorporates Good Samaritan guidelines in order to help road accident victims. The Bill defines good samaritan as a person who provides emergency medical or non-medical assistance to a road accident victim and provides rules to prevent harassment of such a person.
• The Motor Vehicle (amendment) Bill 2019 amends the Motor Vehicles Act, 1988 to tackle issues like regulation of taxi aggregators, third party insurance and road safety.
• This Bill seeks maximum accountability for third party insurance in case of a vehicle accident at Rs 10 lakh in case of death and Rs. 5 Lakh in case of grievous injury.

The statics of road accidents in India

• Union Road Transport and Highways Minister Nitin Gadkari said in Lok Sabha that more than 1.50 lakh people die and 5 lakh people injured annually in road accidents.
• The amendment Bill proposes to exclude a clause of the Motor Vehicle Act to decide how to maintain their registers for driving licenses, to centralize vehicle registration data and achieve standardization.

Prelims Factoids
Pranab Mukherjee conferred Bharat Ratna, Bhupen Hazarika and Nanaji Deshmukh conferred posthumously

What's the NEWS

• The President conferred the Bharat Ratna (India's highest civilian honour) posthumously upon late singer Bhupen Hazarika and late RSS leader Nanaji Deshmukh and Former President Pranab Mukherjee
• The Bharat Ratna was conferred after a gap of four years. In 2015, the Modi Government had conferred the prestigious honour upon former prime minister Atal Bihari Vajpayee and founder of Banaras Hindu University Madan Mohan Malviya.
• With the latest conferral, the total number of Bharat Ratna awardees has gone up to 48.

Pranab Mukherjee

• Pranab Mukherjee was the 13^th President of India and had served between 2012 and 2017. He became the fifth president to receive the Bharat Ratna.
• The other Presidents to receive the nation's highest civilian honour include Dr. Rajendra Prasad, Sarvepalli Radhakrishnan, Zakir Hussain and VV Giri.
• Pranab Mukherjee, at the age of 47, had become India's youngest Finance Minister in 1982. He was chosen to lead key ministers including external affairs, defence and finance from 2004. He became the first President to have this distinction.

Bhupen Hazarika

• Bhupen Hazarika, popular Assamese musician and filmmaker, played a huge role in bringing the culture and folk music of Assam and north-east India to Hindi cinema. He was born on September 8, 1926 and passed away on November 5, 2011.
• Bhupen Hazarika was conferred the Padma Shri in 1977, Sangeet Natak Akademi Award in 1987, Dada Saheb Phalke Award in 1992, Padma Bhushan in 2001 and Padma Vibhushan posthumously in 2012.
• Bhupen Hazarika was multi-talented, as he was a singer, playback singer, lyricist, poet, musician and filmmaker. He had done his Ph.D. from Columbia University in 1952.
• Hazarika also had a brief stint in politics, as he had been fielded by the BJP from the Guwahati Lok Sabha seat in 2004 but was unsuccessful. Earlier, he had served as an Independent MLA in Assam between 1967 and 1972.

Nanaji Deshmukh

• Nanaji Deshmukh was born on October 11, 1916 in Hingoli, Maharashtra. Deshmukh had set up a chain of RSS-inspired schools throughout India and was associated with the RSS till his death in 2010 at the age of 94 in Satna, Madhya Pradesh.
• Deshmukh had played a leading role in the formation of the Janata Party government in 1977 and was one of the key members of the JP Narayan's movement against the Emergency in 1975.
  
  

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