General Studies Paper-2

Context

• Recently, renowned climate activist and Ramon Magsaysay Award winner Sonam Wangchukjoined a protest, demanding statehood for Ladakh and its inclusion in the Sixth Schedule of the Constitution.

Historical Background

• Historically, Ladakh was part of the erstwhile state of Jammu & Kashmir.
• For decades, Ladakhis felt politically marginalized, with decisions being made in Srinagarthat often overlooked the region’s unique cultural and ecological needs.
• After abrogation of Article 370, Ladakh was carved out as a UTwithout a legislature, under the Jammu and Kashmir Reorganisation Act, 2019.
  • It isgoverned directly by the Lieutenant Governor and the Ministry of Home Affairs (MHA), with limited local decision-making, unlike Delhi or Puducherry.
• However, the removal of Article 35A, which had offered some protection to Ladakh’s land and employment rights, left many feeling vulnerable.

Why Ladakh Became a UT?

• Cultural & Demographic Identity:Buddhist-majority Leh and Shia-majority Kargil are culturally distinct from the Sunni-majority Kashmir Valley.
• Security Considerations:Borders both Pakistan (PoK) and China (Aksai Chin); strategic sensitivity necessitated tighter central control.
• Developmental Goals: UT status intended to improve administrative efficiency, expedite infrastructure, and ensure direct central funding.

Constitutional Basis for State Formation

• Constitutional Provisions:
  • Article 3 of the Indian Constitution: Parliament may:
    • Form a new state by separating territory from any state or UT;
    • Unite two or more states or parts of states or UTs;
    • Alter the boundaries or names of existing states;
  • Key Requirements:
    • A Bill for reorganization needs to be introduced in Parliament only with the President’s recommendation;
    • If the proposal affects the area or boundaries of an existing state, the President needs to refer it to that state’s legislature for its views;
    • The views of the legislature are not binding; Parliament can proceed regardless.

Sixth Schedule Safeguard

• The Sixth Schedule of the Indian Constitution, under Article 244(2) and Article 275(1),provides for the administration of tribal areas in Assam, Meghalaya, Tripura, and Mizoram.
• It allows for the creation of Autonomous District Councils (ADCs)and Regional Councils with legislative, executive, and financial powers over land, public health, agriculture, and local customs.
• Government Mandates and Committees:The MHA constituted a High Powered Committee (HPC) in 2023, chaired by Minister of State for Home Affairs Nityanand Rai. The committee’s mandate includes:
  • Exploring constitutional safeguards for Ladakh;
  • Strengthening the LAHDCs of Leh and Kargil;
  • Ensuring protection of land, employment, and cultural identity;
  • Facilitating inclusive development and fast-track recruitment;
• The National Commission for Scheduled Tribes (NCST),in its 119th meeting, recommended that Ladakh be brought under the Sixth Schedule.
  • Ladakh has over 97% of its population belonging to Scheduled Tribes and the need to preserve its agrarian and cultural rights.

Related Concerns & Challenges

• Political Mandates:UTs without legislatures lack elected representation and local lawmaking powers.
  • Decisions are made by centrally appointed administrators, often disconnected from local realities.
• Cultural and Regional Identity:UTs with distinct ethnic or tribal populations seek constitutional safeguards and self-governance.
• Developmental Equity:Statehood can unlock greater financial devolution and institutional infrastructure.
• Employment and Representation:Locals are demanding a Public Service Commission and job reservations to ensure equitable access.
• Legal and Constitutional Hurdles:The Sixth Schedule currently applies only to certain northeastern states.
  • Extending it to a UT like Ladakh would require constitutional amendments and political consensus.
• Administrative Complexity:Ladakh already has two LAHDCs in Leh and Kargil. Integrating these with Sixth Schedule provisions would require careful restructuring to avoid jurisdictional conflicts.

Measures Notified by Union Government for Ladakh

• Reservation in Government Jobs: 85% reservation for resident Ladakhis in government employment;
  • Of this, 80% reserved for STs;
  • Additional quotas:4% for residents along the LAC and LoC;
    • 1% for SCs; and 10% forEWS;
  • Total reservation reaches 95%, among the highest in India.
• Domicile Criteria:Individuals need to prove 15 years of continuous residence in Ladakh from October 31, 2019 (the day Ladakh became a UT), to qualify as a domicile.
  • Children of Central government employees, All India Services officers, and PSU staff posted in Ladakh are eligible under specific conditions.
• Women’s Political Representation:One-third of seats in Ladakh’s Autonomous Hill Development Councils (LAHDCs) reserved for women on a rotational basis.
• Official Languages:Ladakh now officially recognizes English, Hindi, Urdu, Bhoti, and Purgi.
  • It affirms linguistic diversity and cultural preservation.
• Regulatory Amendments:
  • Ladakh Reservation (Amendment) Regulation, 2025;
  • Ladakh Civil Services Decentralisation and Recruitment (Amendment) Regulation, 2025;
  • Ladakh Official Languages Regulation, 2025;
  • Ladakh Autonomous Hill Development Councils (Amendment) Regulation, 2025.
• These provisions mirror similar protections in northeastern states like Mizoram and Arunachal Pradesh, where tribal populations enjoy over 80% reservationin public employment.

Road Ahead

• While the Constitution provides the legal framework, the transition from UT to statehood is ultimately a political decision. It requires:
  • Presidential recommendation;
  • Parliamentary approval through a reorganization bill;
  • Strategic alignment with national interests and regional aspirations.

General Studies Paper-3

Context

• NITI Aayog launched the Report on ‘Unlocking a $200 Billion Opportunity: Electric Vehicles in India.
  • This report offers a timely and comprehensive review of current challenges, alongside actionable recommendations to fast-track the EV transition in India.

Major Highlights

• The key objectives of India’s EV Push: 
  • Reduced dependence on imported fuel;
  • Increased share of renewable energy by leveraging the storage capacity of EV batteries;
  • Reduced Greenhouse Gases (GHG) emissions;
  • Improved air quality;
  • Improved Plant Load Factor (PLF) of electricity generating plants;
  • Becoming a leader in a rapidly growing global market.
• Goal: India seeks to attain a 30% share of electric vehicles, in the total vehicles sold, by 2030.
• Adoption of EVs: Sales of EVs in India went up from 50,000 in 2016 to 2.08 million in 2024 as against global EV sales having risen from 918,000 in 2016 to 18.78 million in 2024.
  • Adoption of EV has been increasing in India but has been slower than the pace in some of the leading countries like the US, EU and China.
• India’s Progress: India has progressed to only about 7.6 % of the sales in 2024 being electric, which is far behind its target of 30% by 2030.
  • Thus, it has taken nearly 10 years to reach a penetration level of 7.6% and now needs to increase this share by over 22% in the next 5 years alone.

Challenges

• There are challenges of financing vehicles, especially electric buses and electric trucks.
• Inadequacy of charging facilities on one hand and low utilization of existing public charging facilities on the other hand.
• Lack of adequate awareness regarding EV performance among public and private stakeholders.
• Inadequate data and regulatory gaps hinder evidence-based decision making.

Strategy for Accelerating EV Adoption in India

• Moving from incentives to Mandates: Announce a clear policy, with target timelines, for Zero Emission Vehicle (ZEV) adoption.
  • Design a progressively more stringent plan for mandating the production and purchase of EVs and disincentivising the continued use/production of ICE vehicles.
• Saturation instead of thin distribution: Design and start a saturation program to support 5 cities over 5 years.
  • Have entities in the States to manage this program.
  • Scale up to 20 cities and then to 100 cities.
• Enable financing for e-Buses and e-Trucks: Create a pooled fund with contributions from the public budget and multilateral.
  • Design and launch an appropriate scheme to channel the funds.
• Scale up research for new battery technologies: Set up an academia-industry-government partnership for accelerating research on new battery chemistries.
• Strategic scaling of charging infrastructure: Identify 20 high density corridors for e-Bus and e-Truck operations and commission a study to identify strategic locations for charging hubs based on current voltage patterns on these corridors.
  • Establish nodal agencies in each state to facilitate and enable more charging stations to be established.

General Studies Paper-3

Context: Medical tourism, the practice of traveling across borders for affordable, high-quality medical care has grown into a global industry, with India now holding a significant position as a preferred destination.

• As of 2025, India ranks 10th in the global Medical Tourism Indexand is poised for even greater growth as the industry is predicted to surpass US$54b globally by 2026.

What is Medical Tourism?

• Medical tourism refers to the practice of patients traveling, often across national borders, to obtain medical treatment—ranging from complex surgeries and advanced diagnostics to cosmetic, dental, or wellness therapies.

Why Does India Attract Medical Tourists?

• Cost Advantage:  Procedures can cost 60–90% less than in Western countries, making quality care accessible to a broader international clientele.
• Skilled Professionals: India boasts a large pool of internationally recognized doctors and medical staff, many trained or experienced abroad, and proficient in English.
• World-class Infrastructure: Major metros offer state-of-the-art medical facilities, many with international accreditations such as Joint Commission International (JCI).
• Diversity of Care: Patients can access both cutting-edge modern treatments and recognized traditional therapies like Ayurveda, Yoga, and wellness rehabilitation.
• Ease of Communication: English is widely spoken among healthcare providers, easing patient experiences.

Government and Industry Initiatives

• Policy Support: The 2002 National Health Policy recognized treatment of overseas patients as “deemed export,” catalyzing growth.
• ‘Heal in India’ Campaign: Centralized promotion of medical value travel, integrating various ministries and marketing India as a holistic destination.
• Visa Liberalization: Introduction of e-Medical Visa extended to 171 countries.
• Infrastructure Investment: Expansion into Tier-2 and Tier-3 cities and targeted financial incentives.
• International Agreements: Bilateral pacts, such as with Bangladesh, to facilitate smoother medical travel.

Importance for India

• Foreign Exchange and Economic Growth: The sector earned around US$16.3b, supporting a positive balance of payments.
• Boost to Healthcare Sector: Drives improvements in quality, infrastructure, and technology in metropolitan and secondary cities.
• Employment Generation: Expands job opportunities for skilled and semi-skilled workers, directly in healthcare and indirectly in tourism, hospitality, and wellness sectors.
• Global Soft Power: Increases India’s prestige as a healthcare and wellness leader, strengthening diplomatic and cultural influence.

Challenges & Ethical Issues Involved

• Healthcare Inequality: The focus on serving foreign patients in high-end private hospitals can create a resource drain, leaving public health institutions underfunded and underserved.
• Regulatory Gaps: Inadequate oversight leads to concerns about misleading advertising, lack of informed consent, and weak data protection, especially for foreign patients unfamiliar with local laws.
• Public-to-Private Shift: Skilled professionals may shift away from public service or primary care roles to more lucrative jobs in private hospitals, exacerbating domestic shortages.
• Ethical Concerns: Medical professionals sometimes prioritize elective, high-margin procedures for foreign clients over local community needs. This can foster the neglect of primary health care and essential public services.

Way Ahead

• Policy and Regulatory Reform
  • Comprehensive Regulatory Framework:Strengthening patient safety, transparency, informed consent, and standardized quality assurance; strict data protection laws.
  • Equitable Resource Allocation: Policies to ensure revenue from medical tourism is re-invested into public healthcare, infrastructure, and workforce development.
• Promoting Inclusivity and Best Practices
  • Strategic Partnerships: Develop more bilateral agreements and region-specific outreach (e.g., with SAARC, Southeast Asia, Middle East, Africa, Europe, North America).
  • Insurance and Patient Protection: Reforms to extend insurance coverage for a wider range of treatments and streamline claims for foreign patients.
  • Digital Transformation: Expand the reach and reliability of online MVT portals and telemedicine, including AYUSH and wellness modules for a comprehensive care continuum.
• Sustainable Growth:
  • Public-Private Partnerships: Foster FDI and innovation through PPPs for integrated hospital-tourism development, learning from successful international models.
  • Regional Development: Bring world-class care to tier-2 and tier-3 cities, reducing pressure on metros and diffusing the benefits of growth.

General Studies Paper-3

Context: India relies heavily on groundwater for drinking and irrigation, but rapid, unregulated extraction has led to widespread contamination.

India’s groundwater crisis

• India depends on groundwater for about 85% of its rural drinking water needs and around 60% of irrigation water.
• Despite an increase in rainfall over the past decades, groundwater replenishment is insufficient due to excessive withdrawals and encroachments on natural recharge zones.
• Groundwater levels in many parts of India have depleted drastically, with water tables in northwestern states (Punjab, Haryana, Delhi, Western Uttar Pradesh) dropping over 40 meters deep, making extraction expensive and unsustainable.
• According to recent data, about 60% of India’s districts face critical groundwater depletion or contamination or both, threatening the livelihoods of millions.
• Also, Groundwater is facing a hidden crisis of pollution.
  • Contaminants originate from chemical fertilizers, industrial waste, sewage leaks, and natural sources worsened by human activity. 

Key structural issues

• Institutional fragmentation: India’s groundwater crisis is driven by a fragmented regulatory system and poor coordination.
  • Agencies such as the CGWB, the CPCB, the SPCBs, and the Ministry of Jal Shakti operate in silos, often duplicating efforts and lacking coordination for integrated, science-based interventions.
• Weak legal enforcement: The Water Act exists, its enforcement — especially on groundwater discharge — is inadequate.
  • Regulatory loopholes and lax compliance embolden polluters.
• Lack of real-time, publicly-accessible data: Monitoring is infrequent and poorly disseminated.
  • Without early warning systems or integration with public health surveillance, contamination often goes undetected until after serious health outcomes emerge.
• Over-extraction: Excessive pumping lowers water tables and concentrates pollutants, making aquifers more vulnerable to geogenic toxins and salinity intrusion.

Impacts 

• The 2024 Central Ground Water Board report highlights pollution with nitrates, fluoride, arsenic, uranium, iron, and heavy metals across many states, causing serious health issueslike fluorosis, cancers, kidney failure, and developmental disorders.
• Incidents of groundwater poisoning, such as in Uttar Pradesh and Odisha, reveal institutional neglect.
• This escalating groundwater crisis poses a major public health threat affecting millions, especially in rural areas.

Suggestions 

• India’s groundwater crisis has shifted from scarcity to safety, with invisible and irreversible pollution posing a serious threat.
• Therefore India’s groundwater crisis calls for a bold, coordinated, and multi-dimensional strategy  and these are :
  • Comprehensive Policy Reforms: Establish stringent extraction limits in over-exploited zones and incentivise water-efficient agricultural practices.
  • Integrated Monitoring Systems: Leverage real-time data analytics to track contamination trends and predict future risks.
  • Public Awareness Campaigns: Educate communities about contamination risks and promote the adoption of low-cost treatment technologies.
  • Targeted Remediation: Deploy region-specific solutions such as rainwater harvesting in salinity-prone areas and phosphate reduction strategies to curb fluoride and nitrate contamination.

General Studies Paper-2

Context: India and Russia have reaffirmed their strategic partnership with a renewed focus on industrial cooperation, particularly in the extraction of rare earth minerals and critical resources, amid US’s escalated pressure on India’s oil trade with Russia.

Indo-Russian Cooperation in Rare Earth Minerals

• Need:Rare Earth Elements (REEs) are essential for modern technologies — electric vehicles, wind turbines, semiconductors, and defence systems.
  • Recent export restrictions by China, which controls 85–95% of global supply,have disrupted India’s automobile production and exposed vulnerabilities in its supply chain.
• To counter this, India and Russia are:
  • Exploring joint ventures in rare earth and critical mineral extraction.
  • Focusing on underground coal gasification and modern industrial infrastructure.
  • Advancing technology transfer and capacity building in mining equipment and exploration.

Expanding Industrial Cooperation

• The 11th Session of the India-Russia Working Group on Modernisation and Industrial Cooperation, held in New Delhi, covered a wide range of sectors:
  • Aerospace Science & Technology: Plans for a modern wind tunnel, small aircraft piston engines, and joint R&D in carbon fibre, additive manufacturing, and 3D printing.
  • Aluminium, Fertilizers, & Railway Transport:Enhanced engagement and technology sharing.
  • Waste Management:Industrial and domestic waste solutions were also discussed.
• The meeting concluded with the signing of a protocol reaffirming the strategic partnership and shared commitment to deepen economic ties.

Scientific Collaboration

• India’s CSIR-IMMTsigned Joint Declarations of Intent with Russia’s Giredmet and Rosatom to:
  • Advance critical mineral processing technologies.
  • Promote sustainable resource development.
  • Support India’s goals under Atmanirbhar Bharat and Viksit Bharat initiatives

General Studies Paper-3

Context:  The Solar Energy Corporation of India Limited (SECI) has conducted its first-ever auction for Green Ammonia procurement via SIGHT Scheme (Mode-2A) under National Green Hydrogen Mission.

Hydrogen

• It  is the lightest and most abundant element in the universe and rarely found in nature in its elemental form and must always be extracted from other hydrogen-containing compounds.
• It is categorised into three categories, namely, Grey, Blue and Green.
• Grey Hydrogen: It is produced via coal or lignite gasification (black or brown), or via a process called steam methane reformation (SMR) of natural gas or methane (grey). These tend to be mostly carbon-intensive processes.
• Blue Hydrogen: It is produced via natural gas or coal gasification combined with carbon capture storage (CCS) or carbon capture use (CCU) technologies to reduce carbon emissions.
• Green Hydrogen: It is produced using electrolysis of water with electricity generated by renewable energy. The carbon intensity ultimately depends on the carbon neutrality of the source of electricity (i.e., the more renewable energy there is in the electricity fuel mix, the “greener” the hydrogen produced)

National Green Hydrogen Mission

• It was launched on 4th January 2023, with an outlay of Rs. 19,744 crores up to FY 2029-30.
• It will contribute to India’s goal to become Aatma Nirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition.
• It will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership inGreen Hydrogen.

Mission Subcomponents 

• SIGHT Programme: Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen – will be provided under the Mission.
• Pilot projects: The Mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large scale production and/or utilization of Hydrogen will be identified and developed as Green Hydrogen Hubs.
• R&D Projects: Public-Private Partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the Mission. R&D projects will be goal-oriented, time bound, and suitably scaled up to develop globally competitive technologies.
• Skill Development: A coordinated skill development programme will also be undertaken under the Mission.

Benefits 

• Decarbonization: Significant reductions in CO2 emissions from industrial, mobility, and energy sectors.
  • Making India a leading producer and supplier of Green Hydrogen in the world.
• Reduced Dependence on Imports: Diminished reliance on imported fossil fuels, enhancing energy security.
  • Creation of export opportunities for Green Hydrogen and its derivatives.
• Indigenous Manufacturing: Development of domestic capabilities in green hydrogen technology and infrastructure.
• Employment Opportunities: Creation of over 6 lakh jobs throughout the value chain, from production to utilization.
• Technological Innovation: Advancement of cutting-edge technologies and innovation ecosystems within the country.

General Studies Paper-3

Context

• The Supreme Court held that projects with a built-up area above 20,000 square meters, whether industrial, educational, or otherwise, cannot be exempted from the environment impact assessment (EIA) 2006 regime.

About

• The SC reaffirmed that the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) would remain the competent authorities for conducting project-level environmental assessments.

Environment Impact Assessment (EIA)

• EIA can be defined as the study to predict the effect of a proposed activity/project on the environment. 
• EIA systematically examines both beneficial and adverse consequences of the project and ensures that these effects are taken into account during project design.
  • It also proposes measures to mitigate adverse effects. 
• Significance: Protection of environment, optimum utilisation of resources and saving of time and cost of the project.
  • It also lessens conflicts by promoting community participation, informing decision makers, and helping lay the base for environmentally sound projects.

EIA in India

• 1994:The Union Ministry of Environment and Forests (MEF), under the Environmental (Protection) Act 1986, made Environmental Clearance (EC) mandatory. 
• EIA 2006 Regime: It is the governing legal instrument to grant green clearance for establishment or expansion of an industry on the basis of the expected environmental impact of the project.
  • It made it mandatory for various projects such as mining, thermal power plants, river valley, infrastructure and industries to get environment clearance.
  • However, unlike the EIA Notification of 1994, the new legislation has put the onus of clearing projects on the state government depending on the size/capacity of the project.

Legal and Institutional Framework

• EIA Notifications: Issued by the Ministry of Environment, Forest and Climate Change (MoEFCC) using powers under the Environmental (Protection) Act 1986.
• Institutional Authorities:
  • Central Expert Appraisal Committee (EAC): For Category A projects (national level).
  • State Expert Appraisal Committees (SEACs): For Category B projects (state level).
  • State Environment Impact Assessment Authorities (SEIAAs):Grant environmental clearance at state level.
• Categorisation of Projects
  • Category A: National-level projects with significant impacts (e.g., large dams, major highways).
  • Category B1:Moderately sized projects with regional impact.
  • Category B2: Small-scale projects with less impact.

Concerns

• One positive of the 2006 EIA notification is its dynamism to accommodate changes in its provisions and processes as per the requirement of the changing times.
  • However, this characteristic of the legal instrument seems to have been exploited.
• Over 110 changes were made in just 5 years — most of them without public consultation.
• This flexibility has been misused and industries get approvals — even if they pollute or harm the environment.

Suggestions

• Create an independent EIA authority to avoid conflict of interest.
• Strengthen public consultation, especially in local languages.
• Ensure scientific and transparent baseline data.
• Regularly update the list of exempted projects based on environmental concerns.

General Studies Paper-2

Context

• the Supreme Court heard a petition challenging the constitutional validity of Section 17A of the Prevention of Corruption Act, 1988, balancing protection of honest officers and ensuring accountability in corruption probes.

What is Section 17A of the Prevention of Corruption Act?

• Introduced via the 2018 Amendment, Section 17A prohibits any police inquiry or investigation into public servants without prior approval from the competent authority (Central or State Government) if the act was done in the discharge of official duties.
• It aims to shield honest officials from harassment and prevent policy paralysis due to fear of prosecution.
  • However, critics argue it creates hurdles in timely action against corruption, as prior approvals are often delayed or denied.

Key Issues Raised in the Supreme Court

• Challenge to Section 17A:The petition by Public Interest Litigation (CPIL), argued that;
  • The provision cripples anti-corruption investigations.
  • Governments, being the competent authority, are essentially judging their own officers, compromising impartiality.
  • In many cases, especially at the state level, sanctions are not granted, blocking investigation.
• The deletion of Section 13(1)(d)(ii) (abuse of position) is criticised as diluting the anti-corruption law’s scope.

Supreme Court Observation

• Constitutionality vs. Implementation: The Court observed that many concerns raised were more about implementation flaws, not the constitutional validity of the provisions.
• It warned that fear of prosecution would lead to policy paralysis, and emphasised the necessity of shielding honest officers from frivolous proceedings.
• The Court highlighted a need to strike a balance between protecting honest officials and enabling corruption probes.

What are the concerns?

• The requirement of prior sanction under Section 17A causes significant delays in initiating corruption investigations, thereby reducing the deterrent effect of the anti-corruption law.
• The separation of powers limits the judiciary scope for immediate corrective action, unless the provision is found to be unconstitutional.
• The current framework lacks an impartial and time-bound mechanism for granting sanctions, raising concerns about transparency and the objectivity of the decision-making process.

Various Committee Recommendations

• Rajya Sabha Select Committee (2016)highlighted that requiring government sanction for every investigation is difficult at the grassroots, undermining public trust and emboldening corruption.
  • It suggested limiting the sanction mechanism to senior officials, not minor ranks, and streamlining approvals
• The Santhanam Committee (1962)recommended establishment of the Central Vigilance Commission (CVC) to independently review sanction requests and direct investigations through agencies like the CBI.

Way Ahead

• Time-Bound Sanction Process: Introduce a mandatory timeline for granting or denying sanction under Section 17A to prevent undue delays in initiating investigations.
• Judicial Safeguards: Empower courts to review arbitrary refusals or delays in granting sanctions, thereby reinforcing checks and balances within the anti-corruption framework.

General Studies Paper-3

Context:

• As per a report submitted in the Rajya Sabha, the Enforcement Directorate (ED) has taken up 5,892 cases under the Prevention of Money Laundering Act (PMLA) since 2015 but only 15 have resulted in convictions.

Money Laundering

• Money laundering is the process of making illegally obtained money appear legitimate by channeling it through complex financial transactions.
• Under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, it involves concealing, possessing, acquiring, or using proceeds of crime and projecting them as untainted property.
• It occurs in three stages: placement (introducing illicit money into the system), layering (moving it through transactions), and integration (reintroducing it through assets or businesses).

Consequences Money Laundering

• Money laundering distorts asset prices, undermines fair competition, and destabilizes financial systems. 
  • For example:Punjab & Maharashtra Cooperative Bank (PMC Bank) crisis in 2019 had linkages to fund misreporting and money laundering.
• Illicit funds can influence elections, policy decisions, and threaten democratic institutions.
• Money laundering is closely linked to terror financing and cross-border criminal networks.

Issues in Tackling Money Laundering in India

• Regulatory Loopholes: Shell companies, informal money channels (like hawala), and real estate still remain underregulated.
  • Crypto transactions are a rising blind spot and India lacks a clear legal framework as of 2025.
• Enforcement Challenges:Agencies like Enforcement Directorate (ED) and FIU-IND are often under-staffed and accused of selective action or political targeting (example: frequent ED raids before state elections).
• Judicial Delays: Convictions under PMLA (Prevention of Money Laundering Act) are dismal and highlight concerns about the effectiveness of enforcement and the government’s inability to control such financial crimes.
• Cross-border Complexity:Laundering networks are transnational and Indian agencies struggle with extradition, mutual legal assistance, and information-sharing.
  • Panama Papers (2016) and Pandora Papers (2021)exposed several Indians with offshore assets.

Role of Prevention of Money Laundering Act 2002  (PMLA)

• The Prevention of Money Laundering Act, 2002 (PMLA) is a criminal law aimed at preventing money laundering and confiscating related property.
  • It is aligned with the UN Political Declaration and Global Programme of Action adopted by the UN General Assembly in February 1990.
• The Enforcement Directorate (ED) is tasked with investigating, attaching properties, prosecuting offenders, and ensuring confiscation through Special Courts.
• A key aspect of the statute is that the burden of proof lies with the accused.

Supreme Court’s Observations 

• The Supreme Court in Vir Bhadra Singh versus ED (2017) reaffirmed that the issuance of an Enforcement Case Information Report (ECIR) is sufficient to initiate proceedings, meaning that an FIR is not required to start action under the Act.
• In Vijay Madanlal Chaudhury vs Union of India (2022), the Supreme Court ruled that while a scheduled offence is required for prosecution under Section 3 of the PMLA, property can be attached under Section 5 without a pre-registered case.

Conclusion and Way Forward

• Money laundering is a socio-political and security threat, not just a financial crime. Despite India’s progress in laws and enforcement, its evolving nature—especially through digital and global channels—requires ongoing vigilance, reforms, and international cooperation.
• Although India has signed DTAAs with around 85 countries to aid information sharing and curb financial crimes, more effective action is still needed.
• To prevent abuse and improve conviction rates, authorities must follow FATF guidelines and handle cases with integrity.
• Use AI/ML algorithms in banking to flag suspicious transaction patterns.
• Ensure independence of ED and FIU while strengthening parliamentary oversight to prevent misuse.

General Studies Paper-1

Context:

• A cloudburst over the Kheer Ganga River (a tributary of Alaknanda River)led to flash floods in the high altitude villages of Dharali in Uttarakhand’s Uttarkashi district.

What is Cloudburst?

• A cloudburst is a localized, extremely intense rainfall event where more than100 mm of rain falls within an hour over a small area (typically about 10 km²).
• Cloudbursts are particularly common in mountainous regions, such as the Himalayas, due to topographical and meteorological factors.

Reasons for Cloudbursts

• Orographic Lifting:Moist air is forced upwards by mountains, causing it to cool and condense rapidly, resulting in intense rainfall.
• Upward Air Currents:Strong vertical currents can suspend raindrops at high altitudes; if these currents suddenly weaken, accumulated water falls in a short burst.
• Monsoon Dynamics: In India, monsoon clouds traveling from the Bay of Bengal or Arabian Sea rise sharply upon hitting the Himalayas, creating optimal conditions for cloudbursts.
• Climate Change: Rising global temperatures allow the atmosphere to hold more moisture, increasing both the frequency and intensity of cloudbursts in recent years.

Way Ahead

• Strengthen Forecasting: Invest in advanced weather radar, satellite, and ground sensor networks for hyperlocal early warning. Real-time data sharing and targeted alerts must reach vulnerable communities directly.
• Ecosystem Restoration:Promote afforestation, watershed management, and stricter regulation of land use to restore the natural ability of slopes and valleys to absorb intense rainfall. Restrict unplanned construction in high-risk zones.
• Disaster-Resilient Infrastructure:Upgrade existing infrastructure (roads, bridges, hydropower plants) with climate-resilient standards. Ensure drainage systems can handle sudden runoff, and build robust evacuation and emergency shelters.
• Research and Capacity Building:Encourage ongoing research on climate change impacts, cloudburst prediction, and local vulnerability mapping.
• Community Awareness and Preparedness:Expand training in disaster response and evacuation at the community level, including regular drills in schools and public places.