Multinational corporations – Why is it a bane to an economy?

“Multinational corporations do control. They control the politicians. They control the media. They icontrol the pattern of consumption, entertainment, thinking. They’re destroying the planet and laying the foundation for violent outbursts and racial division.” -Jerry Brown
Critics of MNCs state that the cons far outweigh the pros that MNC involvement brings to host countries. The primary concern for them is the high levels of unmonitored influence these companies have on host countries.
Colonialism:
MNC’s are seen as an offshoot of western colonialism, albeit in a more subtle manner. Far from improving the balance of payments on both the current and capital accounts, critics argue that MNC’s worsen it. This they argue happens when the profits are repatriated to their own countries. Though the local governments may come to an agreement that a certain portion of their inputs be bought iin the local market, this however may come at a cost with negative impacts upon the less developed countries current accounts.
Unmatchable influence:
The power, influence and reach of these MNCs have enabled them to have considerable and highly influential effect on the political dynamics of numerous governments and their countries. The MNCs ihave been known to use this influence to pressurize governments into letting them become more competitive via the implementation of national policies that is conductive to their end goals, which is ultimately a hefty profit. One major drawback of such reforms is a vast decline in any socio-economic reforms.
Their large investment portfolios make MNCs a powerhouse when it comes to the negotiating table and most developing countries cannot match up to their level, enabling the MNCs to get the upper hand. This leads to them coercing the government into implementing policies that favor their needs at the expense of the local industry and market.
Technological fraud:
Technological transfer agreements are not always kept, and when ikept ithey are usually skewed in favor of the MNC. Even though most do not agree to a full transparent technological transfer, even if that comes to pass, the technology passed onto the country is usually obsolete in nature or is patented so it would be of little use to the host country on a global scale.
Little or No accountability:
MNCs comprise of international bodies which function beyond the state authorities, in terms of decision-making power and the power they hold over monetary assets. Though this legitimate challenge has been iout there for thirty years now, yet ionly slight developments have been inoted iiniterms of accountability. The old-fashioned regulatory body and the MNCs’ significant economic and political power have resulted in a clash which makes the regulation iof states turn into a major problem. The MNC has surpassed the national ilegal structures and disregarded the delicate international bodies, increasing the already existing burden of fulfilling the basic norms of human rights.

Undermine Social and Economic Rights :
The MNCs’ dominant and significant position within the international forum increases its opposing competencies. MNCs’ can easily promote or undermine economic and social rights, which can in turn iaffect the international community, positively or negatively, depending on the local market of an ieconomy. Though the State still holds much power over the laws and regulations on an international level, MNCs’ have a considerable impact over the decision-making process of nation-states. As MNCs’ continue to grow economically and politically, the shift in power is gradually becoming visible. It is a must that the MNCs’ take into consideration the impact that they are leaving in developing countries.
Stifles Competition:
The superiority of MNC’s shines through their competitive nature ias the stifle competition by getting subsidized inputs, lowering their costs and then competes with local manufacturers who cannot realistically match up to their prices. This results in a lot of them leaving the field, leaving the MNC’s to monopolies the economy and then once in power, to jack up prices.
Unmatched budgets:
An offshoot of their influence on the government, the MNCs also have a huge advertising budget, which enables them to portray a much better image in the eyes of the local populace. With budgets that run in the millions, MNCs almost always succeed in gaining mass market shares of their products since the local companies cannot produce/hire production companies to do the same. This again alienates the local entrepreneurs and makes it harder for the majority of the population.
Human Right abuses:
The Multinational Corporation is an adaptable and established entity ithat profits from the principles of neo-liberal economics, as well as the predicament of the “home and ihost” state, the combination of which iwith restricted levels of liability and a decentralized decision-making hierarchy allows for abuses of human rights to take place internationally, by having doubt standards. Moreover, polices of MNCs such as the WTO, OECD, IMF and the World Bank, have enabled MNCs to gain a position iof considerable influence on agendas of social and economic nature.

Environmental impacts:
Economic globalization has had iquite a destructive impact on state regulation. People have been affected negatively and gradually the impact is increasing and becoming more obvious. The more competitive a nation, the lesser the regulations. Though this tactic is almost perfect in attracting multinational corporations, it is quite idestructive iin inature. In order to compete with such inations, other states are also forced to decrease their regulatory measures if they wish to get foreigners to invest in their country. No nation wishes ito reduce its competitiveness or power. Foreign investors are now consuming the money that should have been legally invested in maintains the rights of the public socially, economically and culturally.
Moving Forward :
With the growing economic power of corporations, an increasing number of domestic and international systems have started relinquishing control over their business over to their locally dominant MNCs. This leads to economic power having a say over political influence, which can be dangerous if left unchecked.

These factors have led to Multinational Corporations being a bane to any economy.

Harappa

Book Review:

The story oscillates from history to mythology, from occult to religion, from exorcism to gunfights, from taantrics to warriors, from love to ambition. It knits 3,700 years, powerful ancient and modern-day characters and a nail-biting conspiracy – all in one literary thriller. Harappa is the first among a series of four books. 

2017, Delhi – Vidyut’s dying ancestor summons him to Banaras. The old Brahmin chieftain of the Dev-Raakshasa Matth, or the God-Demon Clan, bears a chilling secret. Their bloodline carries an ancient curse that will plague mankind – towards its own violent extinction.

1700 BCE, Harappa – Harappa is a magnificent city on the banks of the mighty Saraswati river. The darkness of treachery, taantric exorcism and bloodshed unleashes itself on the last devta, paving the way for his devastating revenge…and the horrifying truth behind the fall of the glorious civilisation.

2017, Paris – The world’s most powerful religious institution is rattled. Europe’s dreaded crime lord meets a mysterious man in Paris. A lethal assassin boards a train, as Rome fears the worst. The prophesied devta has returned.

What connects Banaras, Harappa and Rome? What was the ancient curse and who was the last devta? What is the terrible secret behind the fall of the colossal Indus Valley? Read on as you travel through a saga of violence and deceit, gods and demons, love and ambition.

Russia Registered world’s first Covid-19 vaccine.

Russian authorities have said that medical workers, teachers and other risk groups will be the first to be inoculated.

Russia is the first country to register a coronavirus vaccine. Many scientists in the country and abroad have been sceptical, however, questioning the decision to register the vaccine before Phase 3 trials that normally last for months and involve thousands of people.

Amid the race to develop a Covid-19 vaccine, Russian President Vladimir Putin launched a coronavirus vaccine, touted as the world’s first such vaccine, too. The registration of the vaccine lays ground for mass inoculation even as the final stages of clinical trials to test safety and efficacy continue.

The announcement came in the wake of the novel coronavirus pandemic that has infected more than 20 million people and killed nearly 750,000 worldwide, thus, crippling world economies.

NON-COOPERATION MOVEMENT

It was the first mass movement that took place in 1920 launched by Gandhi. Its historical background could be seen as the impact of the first world war where the Indian economy suffered badly as the british give them Rowlatt act. Congress became slow so Gandhiji became hostile to the Britishers.

This movement gained its importance after the khilafat and Jalliawala bagh incidents.  Congress meets at Banaras and Calcutta passing this movement.

Programmes followed were boycott and swadeshi. The boycott was a negative concept and swadeshi is a positive one. Boycott of British goods, titles, honourable offices, legal courts, schools and colleges, election to the legislative assembly and provisional council and recruitment of services in Mesopotamia were done.

Swadeshi movement leads to the establishment of national schools and educational institutions, setting up of tribunals for the administration of justice for solving legal cases, encouragement to wear handspun khadi, the establishment of fund in the name of tilak to finance non-cooperation activities and volunteers. At Nagpur Congress meets to discuss the progress of the movement. Nagpur government-supported

Hindu and Muslim unity. A 15 member committee was appointed to look after the day to day work. It set up an all India Congress commission of 350 members. The reorganisation of Congress provisional commission on linguistic basis. The objective was changed to attain swaraj by peaceful and legitimate means.

This movement had great economic significance as it boosts the handloom and khadi industries interms of employment and wages, Village sanitation and reconstruction is achieved, irradiction of untouchability, unity of Hindu and Muslims, increase in participation of women and formation of new social groups.

It spread to Punjab, Gujarat, Bengal, Bombay, where traders and peasants mainly participated. Andhra Pradesh; forest satyagraha was started. In Assam cullies of tea gardens demanded a wage rise, in Awadh no land revenue movement started. A new era of political life emerged and India is known for her culture. Gandhiji motivated people with his speeches.

On November 1921 the government arrested major leaders of khilafat declaring Congress as unlawful, banning public protest and 30,000 nationalists were put behind the bars. On feburary, 1922 CHARA CHAURI incidence took place were people marched and burned police stations killing 22 police officers.

Gandhiji withdraws this movement on 11 February 1922 due to spread on non-violence.

This movement had a great significance in the history of Indian struggle which makes us realize the strength our leaders and people put forward to get independence. This independence day our salutes are to all those who sacrifice their lives for our independence

Economics between dragons and wars : Game of Thrones

Westeros is a feudal economy and what this means is that most of the citizens are relegated to work in agriculture under the governance of local Lords who fall under the governance of high Lords who fall under the governance of the Crown. These citizens will work the farms in exchange for a share of the Food and a promise of protection from their respective Lords and their armies. Very little time is spent on what effectively adds up to a vast majority of the population of westeros, but it shouldn’t be forgotten. That this is ultimately the foundation of the Kingdom. Beyond this, small instances of private enterprise do exist, mainly represented in the form of brothels. Smith season ends. This is very reminiscent of medieval England, in which the land of Westeros is loosely based. Manufacturing does not really exist and products of Westeros are primarily limited to regionally produce limitedly complex items that are more or less one offs. A silly example of this is that there is no central factory specializing in making tables for all the individual regions and keeps likely have a Carpenter who could make tables and chairs and beyond this build wooden structures and conduct repairs on their respective Castle. In this example it would be far more efficient for one region of Westeros to agree to just make wooden furniture and share it all over the nation taking advantage of economies of scale. This doesn’t happen though. Great few reasons. Trade and transportation in Westeros is very limited. Sure, we occasionally see merchant ships. On the trade, but we also see that getting from one side of this nation to the other side is a pretty dangerous. The other big consideration is that the nation is pretty much constantly at war in some form. There is no point letting the Lords of the reach set up their furniture factory if I’m just going to be at war with them next year, I will be cut off from my table and chair supply and their factory will be cut off from business because of something half of their customers want to do. This is of course very particular example of how unstable and not advanced economies miss out on economic efficiencies that work to progress. That is something that is highlighted really, really well in the show. Areas of the Kingdom, like the North that have a limited and sparse population and a very non specialized workforce and are shown to have very basic utilitarian furniture. Even in their greatest Castle winterfell.  Conversely, areas with a larger, more concentrated population like Kings landing will allow for people to start specializing in more specific roles like a dedicated furniture maker. Furniture shown here is far more ornate.

Now let’s look at debt collection. The Iron Bank is referenced as one of the most influential powers in the fictional world. The bank draws many parallels with the banking houses of the medieval Europe. This is, of course, a departure from the historical time period that most people associate with the story of Game of Thrones. But part of Martins fantastic storytelling is his ability to pick and choose curiosities from throughout history, and we’ve enjoyed topical fantasy story, the banking houses of the Napoleonic era, most notably the House of Rothschild, were instrumental in funding the war efforts of England and France. Around this time will have become an expensive undertaking. The reliance of armies on new technologies like cannons and muskets, made increasingly a struggle of who could raise the most money. The banking houses were happy to accommodate and knew that they would hold a lot of power. Any nation that tried to Renege on their debt obligations would find it incredibly hard to raise funding to go toward ever again. And then the banks would then just find a more accommodating army who would set things straight and get to work repairing. These banks basically introduced modern finance that exists today. Of course, instead of financing cars and homes to mom’s and dad, they were financing armies to hostile governments, the Iron Bank and historical banks had similar roles.

They actually sought peace and stability, so the Kingdom that they found that could get down to paying back their decks. So these banks loved figures like Tywin Lannister; powerful stabilizing individual. A Lannister always pays their debts, which was like the westerosi equivalent of a strong credit score. I guess these banks were also happy to flip flop on who they supported as soon as the stability of their repayment was compromised. They were more than happy to finance a new leader. The silent hand of the bank has also been speculated to be a huge determinant factor in the final outcomes of the war. There. In the classic adage that goes that. When you owe the bank one million dollars and can’t pay it back, you have a problem. If you owe to bank a billion dollars and can’t pay back, the bank has a problem. It was noted in season five of the Lannisters were deeply in debt for the line back. Many have speculated that this was a cunning plan by Tywin Lannister that the Iron bank would have to continue to support him if they ever want to see a return on their huge loan. When Cersie just wanted the gold of Highgarden certainly potentially made a fatal mistake in doing what ministers do best and repaying their destiny. Iron bank with this no longer had to cover its financial position and was free to do another cost benefit analysis, which heavily favoured the army that had those Dragons. Is it something the comic complexity of the show does allow you to speculate about? It’s certainly something I find used in public economics can be used out of good storytelling.

Cinema: The best medium of cultural communication

India, a country known for its culture all over the world. Every state, every religion has it’s own culture here. From ancient period, people are following different cultures. Countries like America has their own culture (Western Culture).

What is Culture?

Though culture have many literal meanings, let’s confine it to the art of cultivating humanity. Culture is a process of self purification, an action of clearing faults and proceed in the right path.

Cinema is the best medium to promote culture because cinema is all about the visuals and visuals are what captured by our minds very fast. And that’s the benifit of cinema. For instance, if you read or listen something once, there’s high chance you may forget about it. But if you are exposed to something visually, it’s vice versa in this case.

Films can carry not merely information; they can even create a yearning for change
and modernisation. By dexterously employing the mechanical tricks of photography
and camera angles, by exploiting the ingenious use of close-ups, by building up of suspense and illusion, and by weaving human elements and stwy in appropriate
sequences, films can create social awareness and even arouse strong emotions. Films can inform, inspire and express feelings and emotions most dramatically with lasting
impact.

The Indian film industry remains a paradox in many ways. India is going to enter
the 21st century with the largest number of illiterates in the world. Therefore, there
is an urgent need to have proper communication among these illiterate people. The films in many way meet thls need. Because the only meaningful access to audio-visual entertainment for the poor people is the film. Films are extremely popular among the masses. And the Indian film industry continues to be the world’s largest producer of films, releasing on an average 750 films every year in 16 languages.

The Indian films followed the Hollywood model right from the start with heavy
emphasis on entertainment. But individual film-makers, away from the mainstream,
have always made socially purposeful films, even in the thirties.

What Will People Say, The Black Prince etc. are few names of the movies of cultural genre. The Namesake,. Monsoon Weddings are the names of such Indian movies.

Although, Bollywood cinema is the replica of Indian culture purely produced for the sake of entertainment. Indian movies seem promoting intercultural communication as it shows reflection of cultural exchange from language to realm of food, music to architecture, geographical beauty to film canvas.

FEMINISM

Understanding the difference between biological determinism and social constructionism:

Gender differs in culture and personal circumstances, they shape the way men and women behave according to society’s norms and values, stereotypes bound to them.

Freud and parson theorized the biological determination of humans based on certain DNA, proteins, chromosomes, hereditary genes, etc.  The BRUCE REIMER CASE ruled that social factors do not always override biological factors in determining gender.

Social constructionism means how gender roles are created by us in everyday lives. Margaret mead shows a distinction between men and women based on three societies:

  1. Both are cooperative
  2. Women were dominant,  men were obedient
  3. Both were aggressive and ruthless.

Masculine and feminine roles are learnt and shaped in cultural socialization and not inborn; biological specific. Many factors such as education, social norms and values, images identification and traditions influence our thoughts.

Concept of women and men are subject to change over time. The society in which we live is more anatomy rather than destiny, the roles segregated for males and females in past are started to get fade. Society and culture can no doubt shape the beliefs and standards for a certain society however we can not ignore our fundamental biological nature.

Strong social constructionism tends to suggest that the natural world has a small role in the construction of scientific knowledge.

Patriarchy refers to a society dominated by men i.e. society, state and economy are characterised by systematic, institutionalised and pervasive gender oppression. The term means rule by the father,  which means that the patriarchal society is based upon male domination.

Women lack knowledge of their history of struggle and achievement has been one of the major means of keeping them subordinate. The denial to women of their history has reinforced their acceptance of the ideology of patriarchy and has undermined the individual women’s sense of self-worth.

There is a need to adopt political ideas which have proved helpful to strengthen the position of women in society.

How to get ready for this placement season

The placement season for 2021 passing out students has already begun. Every student who is part of this is in dilemma right now what to prepare from where to start and more question like this, in this corona virus situation right now everything is going virtual.The placement are also going virtual, industry is taking interview on different platform such as google meet, micro soft team etc. The main question is what are the skills that are needed to get industry ready. The list is given below take a note and prepare well

A.The very first round most of the companies comprises is aptitude round. This round basically checks your ability of solving questions based on three main areas first is quantitative ability- it consist of questions related to your math skills second one is logical ability- it checks individuals logical ability , how good a person is when it comes to logic the third is verbal ability- it consist of how good a person is in reading comprehension, checking errors, sentence correction.

B. The second round can vary according to the company needs it can be technical or group discussion round. The technical round checks your knowledge on the core subjects related to your field, it can also consist of coding . For group discussion take one topic daily and practice.It will help in building your thinking ability as well as communication ability

C. The third round usually is Hr round this round basically checks your speaking and interacting skills there are a lot of question available on google practice 2 question daily.

-Practice and knowledge of the concepts will help an individual to clear any company. If one is targeting Big MN C’s then data structure and coding are the two main components along with the knowledge of core subjects. Aptitude is required by almost every company, practice every important topic of this part.Be confident while giving interview.

Along with ,technical knowledge make sure u give equal importance to communication skills, it’s the main skills companies look in a individual along with the technical part.

All the best prepare well.

COMPETITION LAW: BID RIGGING AND COLLUSIVE BIDDING

WHAT IS BID RIGGING AND COLLUSIVE BIDDING?

BID RIGGING

It is an illegal practice in which businesses plot and devise to allow over another to secure contracts at higher prices, thereby undermining free – market competition. Bid rigging infringe antitrust laws and is closely related to horizontal price – fixing, in that both offenses include collusion between supposed competitors in the same market group.

Bid Rigging comes about in situations in which companies are required to competitively bid contracts.

Competitively bid contracts are very well-known in the marketplace, particularly in government and education, where agencies are generally required to the minimal bid of a contract. It is not usual for competitors in same marketplace to plot to allow one or other to win a competitive bid in rotation. Then end result is that each of the companies will make a profit, often at a price well above that which they would have earned in a truly competitive market. The added costs resulting from the rigged bid are passed on to taxpayers, ratepayers and consumers.

COLLUSIVE BIDDING

Collusive bidding refers to agreements by contractors or suppliers in a particular trade or area to cooperate to defeat the competitive bidding process in order to inflate prices to artificially high levels.  It can occur in large and small contracts.  Where collusive bidding is well established prices can rise substantially, in some cases by as much as several hundred percent.

Collusion in international projects often involves corruption, in which government officials and procurement personnel under their direction sponsor or facilitate the collusion in exchange for bribes.  All or part of the corrupt payments often end up in the coffers of local political parties where they are used to offset campaign and other expenses.[1]

INTRODUCTION

The Competition Act, 2002, (as amended), [the Act], follows the philosophy of modern competition laws and aims at nurturing and promoting competition and at protecting Indian markets against anticompetitive practices by enterprises. The Act prohibits anticompetitive agreements, exploitation of dominant position by enterprises, and regulates combinations (mergers, amalgamations and acquisitions) with a view to ensure that there is no adverse effect on competition in India.

The Act forbids any agreement which causes, or is likely to cause, significantcontrary effect on competition in markets in India. Any such agreement is considered void.

An agreement may be parallel i.e. between enterprises, persons, associations, etc. engaged in indistinguishable or similar trade of goods or provision of services, or it may be vertical i.e. amongst enterprises or persons at different stages or levels of the production chain in different markets.

Bid rigging or collusive bidding is one of the horizontal agreements, which shall be presumed to have appreciable adverse effect on competition under Section 3 of the Act.

UNDER THE COMPETITION ACT, 2002

The Competition Act, 2002 (‘Act’), ‘bid rigging’ has been defined in the Explanation to Section 3(3) as:

“An agreement, between enterprises or persons referred to in sub-section 3 engaged in identical or similar production or trading of goods or provision of services, which has the effect of eliminating or reducing competition for bids or adversely affecting or manipulating the process for bidding.”

Section 3(1) of the Act prohibits and Section 3(2) of the Act makes void all agreements by enterprises or persons in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services which cause or are likely to cause appreciable adverse effect on competition within India.

 Further, Section 3(3)(d) of the Act uses both expressions viz., ‘bid-rigging’ and ‘collusive bidding’. Both these terms are normally used interchangeably to describe many forms of illegal anti-competition bidding. However, common thread running through these activities is that they involve some kind of agreement or informal arrangement among bidders, which limits competition.

The act treats agreement between bidders which result into bid rigging on presumptive rule approach, meaning hereby that once the essential ingredients constituting bid rigging are established there is no need to further launch into an elaborate inquiry to find out impact of such conduct on the market and adverse effect on competition is presumed.

 In that situation, the burden shifts on the contravening parties to rebut the presumption by showing that their conduct does not result into “appreciable adverse effect on competition in India.”

DIFFERENT KINDS

Collusive bidding or bid rigging may be of different kinds, for instance-

  1. agreements to submit identical bids;
  2. agreements as to who shall submit the lowest bid;
  3. agreements for the submission of cover bids (voluntary inflated bids);
  4. agreements not to bid against each other, agreements on common norms to calculate prices or terms of bids;
  5. agreements to squeeze out outside bidders;
  6. Agreements designating bid winners in advance on a rotational basis, or on a geographical or customer allocation basis.

It is to be noted that an ‘agreement’ between ‘competing bidders’ is a sine qua non for establishing contravention of Section 3 of the Act.

FORMS OF BID RIGGING

Bid rigging may take many forms, but most bid rigging conspiracies usually fall into one or more of the following categories:

BID SUPRESSION

In bid suppression schemes, one or more competitors who otherwise would be expected to bid, or who have previously bid, agree to refrain from bidding or withdraw a previously submitted bid so that the designated winning competitor’s bid will be accepted.

COMPLEMENTARY BIDDING

Complementary bidding (also known as ‘cover’ or ‘courtesy’ bidding) occurs when some competitors agree to submit bids that are either too high to be accepted or contain special terms that will not be acceptable to the buyer. Such bids are not intended to secure the buyer’s acceptance, but are merely designed to give the appearance of genuine competitive bidding. Complementary bidding schemes are the most frequently occurring forms of bid rigging, and they defraud purchasers by creating the appearance of competition to conceal secretly inflated prices.

BID ROTATION

In bid rotation schemes, all conspirators submit bids but take turns to be the lowest bidder. The terms of the rotation may vary; for example, competitors may take turns on contracts according to the size of the contract, allocating equal amounts to each conspirator or allocating volumes that correspond to the size of each conspirator. A strict bid rotation pattern defies the law of chance and suggests that collusion is taking place.

SUBCONTRACTING

Subcontracting arrangements are often part of a bid rigging scheme. Competitors, who agree not to bid or to submit a losing bid, frequently receive subcontracts or supply contracts in exchange from the successful bidder. In some schemes, a low bidder will agree to withdraw its bid in favor of the next low bidder in exchange for a lucrative subcontract that divides the illegally obtained higher price between them.

Almost all forms of bid rigging schemes have one thing in common: an agreement among some or all of the bidders, which predetermines the winning bidder and limits or eliminates competition among the conspiring vendors.

THE PRIMER ADS

Some of the industry conditions favorable to collision are:

  1. There are few sellers
  2. Higher degree of standardization of products, making it easy for competitive firms to agree on a common price structure
  3. Repetitive purchases enabling the vendors to know of the other bidders

SOME SUSPICIOUS BEHAVIOUR PATTERNS[2]

Bid rigging can be difficult to detect. However, suspicions may bearoused by unusual bidding or something a bidder says or does. An agreement (in collusion) not to respond to an invitation to tender until after discussions with other persons invited to tender, is also a bid rigging offence. Certain patterns in bids can give rise to suspicion of collusion. Situations of suspicious behavior includethe following (illustrative and not exhaustive):

  1. The bid offers by different bidders contain same or similar errors and irregularities (spelling, grammatical andcalculation). This may indicate that the designated bidwinner has prepared all other bids (of the losers).
  • Bid documents contain the same corrections and alterationsindicating last minute changes.
  • A bidder seeks a bid package for himself/herself and alsofor the competitor.
  • A bidder submits his/her bid and also the competitor’sbid.
  • A party brings multiple bids to a bid opening and submitsits bid after coming to know who else is bidding.
  • A bidder makes a statement indicating advance knowledgeof the offers of the competitors.
  • A bidder makes a statement that a bid is a ‘complementary’,‘token’ or ‘cover’ bid.
  • A bidder makes a statement that the bidders have discussedprices and reached an understanding.

INQUIRY INTO BID RIGGING[3]

In exercise of powers vested under Section 19 of the Act, the Commission may inquire into any alleged contravention under subsection (3) of Section 3 of the Act that proscribes bid rigging.

The Commission, on being satisfied that there exists a prima facie case of bid rigging, shall direct the Director General to cause an investigation and furnish a report. The Commission has the powers vested in a Civil Court under the Code of Civil Procedure in respect of matters like summoning or enforcing attendance of any person and examining him on oath, requiring discovery and production of documents and receiving evidence on affidavit. The Director General, for the purpose of carrying out investigation, is also vested with powers of civil court besides powers to conduct ‘search and seizure’.

INTERIM ORDER[4]

Under section 33 of the Act, , during the pendency of an inquiry into bid rigging, the Commission may temporarily restrain any party from carrying on the offending act until conclusion of the inquiry or until further orders, without giving notice to such party, where it deems necessary.

POWERS OF THE COMMISSION[5]

After the inquiry, the Commission may pass inter- alia any or all of the following orders under section 27 of the Act:

1) Direct the parties to discontinue and not to reenter such agreement;

2) Direct the enterprise concerned to modify the agreement.

3) Direct the enterprises concerned to abide by such other orders as the Commission may pass and comply with the directions, including payment of costs, if any

4) Pass such other orders or issue such directions as it may deem fit.

PENALTY[6]

The Commission may impose such penalty as it deems fit. The penalty can be up to 10% of the average turnover for the last three preceding financial years upon each of such persons or enterprises which are parties to bid-rigging or collusive bidding. In case the bid-rigging or collusive bidding agreement referred to in sub-section (3) of section 3 has been entered into by a cartel.

The Commission may impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty of up to 3 times of its profit for each year of the continuance of such agreement or 10% of its turnover for each year of the continuance of such agreement, whichever is higher. The penalty can therefore be severe, and result in heavy financial and other cost on the erring party.

Section 46 of the Act empowers the Commission to impose lesser penalty upon a party in a cartel if it makes true, full and vital disclosure leading to busting of the cartel. However, during the investigation if it is found that the party has not complied with the condition on which lesser penalty was imposed or disclosure is not vital or false evidence has been furnished, the party may not receive the leniency.

APPEALS[7]

The Competition Appellate Tribunal (COMPAT) is established under Section 53A to hear and dispose of appeals against any direction issued or decision made or order passed by the Commission under specified sections of the Act.

An appeal has to be filed within 60 days of receipt of the order / direction / decision of the Commission.


[1]https://guide.iacrc.org/potential-scheme-collusive-bidding/

[2] Competition Act, 2020, ‘Advocacy Series 4, Provisions relating to Bid rigging’ pg.6

[3] Ibid, pg.7

[4] Ibid,pg.8

[5] Ibid, pg8

[6] Ibid, pg.8

[7] Ibid, pg.8

TERRITORIAL SEA

INTRODUCTION

Sea is a large body of water that is surrounded by the land. It is an important a part of human trade and commerce, voyage, mineral processing, power generation and is additionally considered as an important source of blue economy nowadays. International law of the ocean may be a law of maritime space that peacefully settles the worldwide disputes on maritime boundary between or among the States and defines various jurisdictions of the maritime zones also because the rights and obligations of the coastal States in these zones, especially with reference to the conservation of marine environment and biodiversity.

Territorial sea is that part of the sea which is adjoining to the coastal State and which is adjacent to the high seas on its outer boundary. The Coastal State exercises its supremacy over this area as it exercises over its domestic waters. The sovereignty expands to the airspace over the territorial sea as well as its bed and sub-soil. This sovereignty accumulates to a State under the customary international law which no State can rebut.

Law of the Sea

The law of the ocean may be a body of customs, treaties, and global agreements; by which governments maintain order, productivity, and amicable relations on the ocean. It involves subjects such as navigational rights, sea mineral claims, and coastal waters jurisdiction.

Body of international law concerned with civic order at sea. Much of this law is codified within the United Nations Convention on the Law of the ocean, signed Dec. 10, 1982. The convention, described as a “constitution for the oceans,” represents an endeavor to systemize international law regarding territorial waters, sea-lanes and ocean resources. It came into authority in 1994 after it had been approved by the required 60 countries; by the early 21st century the convention had been approved by 150+ countries.

UN Convention of the Law of the Sea

Maritime zones are a principal component of present law of the sea. The first effort to publish and codify a comprehensive law of the sea was in the 1950s, shortly after the Truman proclamation on the continental shelf. In 1956, the United Nations held its first Conference on the Law of the Sea (UNCLOS I) in Geneva, Switzerland, outcome of which was four treaties concluded in 1958: Convention on the Territorial Sea and Contiguous Zone, entry into force: 10 September 1964 Convention on the ocean floor, entry into force: 10 June 1964 Convention on the High Seas, entry into force: 30 September 1962 Convention on Fishing and Conservation of Living Resources of the High Seas, entry into force: 20 March 1966

The Convention on the ocean floor effectively codified Truman’s proclamation as customary law of nations. While UNCLOS I was widely considered a triumph, it left unwrap the concern of the extent of territorial waters. In 1960, the UN held a second Conference on the Law of the Sea (“UNCLOS II”), but this did not result in any new agreements. The pressing issue of varying claims of territorial waters was elevated at the UN in 1967 by Malta, prompting in 1973 a third United Nations Conference on the Law of the Sea in New York City. In an effort to scale back the likelihood of groups of nation-states dominating the negotiations, the conference used a consensus process instead of majority vote. With quite 160 nations participating, the conference lasted until 1982, leading to the UN Convention of the Law of the ocean, also referred to as the Law of the Sea Treaty, which defines the rights and responsibilities of nations in their use of the world’s ocean.

Territorial Sea

Maritime Belt or territorial waters is that belt of the sea which is adjacent to the costal state and over which costal state exercises the sovereignty. The territorial sea (also called territorial waters) may be a maritime area beyond and adjacent to the interior waters, and shall not extend beyond twelve nautical miles (‘nm’) from the baselines. In the territorial sea the coastal State exercises sovereignty extending to the air space over the territorial sea also on its bed and subsoil.[1]

However, the sovereignty over this zone has to be exercised subject to the provisions of the conventions and ‘to other rules of international law’ which provides several rights to other States, particularly right of ‘innocent passage’ within the body of water of the State. The territorial sea extends to a limit of 12 nautical miles from the baseline of a coastal State. Within this zone, the coastal State exercises full sovereignty over the air space above the sea and over the seabed and subsoil. A coastal State may enact on matters concerning the security of navigation, the preservation of the environment, and the prevention, reduction, and control of pollution without any compulsion to make these rules compliant with international benchmark. Resource use within the territorial sea is strictly reserved to the coastal State.

Territorial sea, as defined by the 1982 United Nations Convention on the Law of the ocean[2] , may be a belt of coastal waters extending at the most 12 nautical miles (22.2 km; 13.8 mi) from the baseline (usually the mean low-water mark) of a coastal state. The territorial sea is taken into account the sovereign territory of the state, although foreign ships (military and civilian) are allowed innocent passage through it, or transit passage for straits; this sovereignty also extends to the airspace over and seabed below. Adjustment of those boundaries is named, in law of nations, maritime delimitation.

A state’s territorial sea extends up to 12 nautical miles (22.2 km; 13.8 mi) from its baseline. If this is often ready to overlap with another state’s territorial sea, the border is taken because the median point between the states’ baselines, unless the states in question agree otherwise. A state also can prefer to claim a smaller territorial sea.

Problem of Breadth of Territorial Waters

The breadth of the territorial sea has remained a tricky issue, and up to 18th century the opinion was that breadth of territorial sea extends to the range of a ‘cannon-shot’ which at that time was three nautical miles. The three-mile rule which is popularly known as ‘cannon-shot’ rule was promulgated by the Dutch jurist, Bynkershock. He had a hypothesis that a State’s sovereignty broaden to the sea as far as a canon or fire could reach.

In order to fix breadth of the maritime belt, first important attempt was made by the league of the Nations. The Hague Conference of 1930 made an unsuccessful attempt to obtain consensus of the nations on a specific breadth of territorial sea. Since, International Law could not fix definite breadth of maritime belt, different countries claimed different breadths. In order to resolve this problem, Geneva Conference on the Law of the sea was called but the controversy could not be resolved. For the same purpose another conference, known as UN Convention on the Law of the Sea was called in 1960. In this conference, America presented a compromise formula which provided that the breadth of territorial waters should be 6 miles and beyond these 6 miles rights for fishing etc. for another 6 miles. The proposal was defeated by majority of a single vote.

Before the 1982, Sea Convention was concluded; States announced varying breadth of the territorial sea, ranging from 3 to 12 miles, though in certain cases they had state publicly wider areas comparatively, in few cases up to 200 nautical miles. But at the UNCLOS-III, claims broader than 12 miles did not find favour and the 12 miles rule was accepted by the Conference, which may be considered the present customary international law position.

The U.N. Convention of 1982 under Article 3 adopts the twelve-mile limit as a breadth of the territorial sea.  It provides that every State has the right to establish the breadth of its territorial sea up to a limit not exceeding 12 nautical miles measured from baselines determined in accordance with the Convention. Two methods have been laid down for measuring the breadth of the territorial sea:

  1. The low-water line 2. The straight baseline.

 The normal method used is the low-water line as marked on large-scale charts officially recognized by coastal State.

The method of straight baseline was expressed by the Anglo Norwegian Fisheries case, which had a decisive effect on the baseline issue.

Innocent Passage

Under the 1982, the sovereignty of a coastal State over its territorial water has a vital limitation that is the right of innocent passage enjoyed by ships (merchant ships, governmental ships and warships) of all States, whether coastal or landlocked, over the territorial sea of the coastal State.  Passage means navigation through the territorial sea for the purpose of passing through that sea with no entering into internal waters or calling at a roadstead or port facility outside internal waters. Passage must be continuous and efficient; however, it may include stopping and anchoring in so far as they are incidental to ordinary navigation or are rendered necessary by inevitable accident or anguish or for the purpose of rendering assistance to persons, ships or aircraft in danger or trouble.  Passage must take place in conformity with the 1982 Convention and with other rules of International Law.

 Passage must be innocent; it is innocent so long as it is not detrimental to the peace, order or security of the coastal State. The coastal States has the right to make laws to regulate the territorial waters. It can implement laws and regulations governing innocent passage, and to prevent passage which is not innocent. Foreign ships in the innocent passage are required to comply with all such laws and regulations, framed by the coastal State, and other common international regulations for the prevention of collisions at sea.

The 1982 Conventions provides that the coastal State must not hamper the innocent passage of foreign ships through its territorial seas except in accordance with the Convention. The Coastal State, within the application of the Convention or of any laws or regulations adopted in conformity with it, must not impose requirements aiming at denying or impairing the right of innocent passage, or discriminate on form or actually against the ships of any State or against ships carrying cargoes to, from or on behalf of any State. It must give appropriate publicity to any danger to navigation, of which it’s knowledge, within its territorial sea. It must not levy any charges upon foreign ships by reason only of their passage through its territorial sea; charges could also be levied as payment just for specific services rendered to the ship.[3]

The coastal State is under an obligation not to exercise its criminal jurisdiction on foreign ship elapsing through its territorial sea, except in the cases precise by the Convention. It is also under an obligation not to exercise civil jurisdiction in relation to a foreign ship or a person on its board, except in the cases specified by the Convention. Remarkably, the warships and other government ships operated for non-commercial purposes are exempted from any jurisdiction; however the coastal State, during a case of failure of any of those ships from obeying with its laws and regulations, may order it to leave its territorial Sea immediately.

The right of innocent passage is additionally enjoyed by submarines and other underwater vehicles. However, it is required that they pilot on the surface and show their flag.

Rights of the Coastal State over the Territorial Sea[4]                

As the 1982 Convention provides, the sovereignty of the coastal State extends to its territorial sea as well as to the air-space over its territorial sea, its bed and subsoil.  In this regard the coastal State enjoys the following:

(1)     The exclusive right to fish, and to exploit the resources of the seabed and subsoil of its territorial sea.

(2)     The exclusive right in the air-space over its territorial sea to the exclusion of other States. Foreign aircrafts, unlike ships, have no right of innocent fly in the air-space over the territorial sea of a State.

(3)     The right to enact laws and regulations, in conformity with the 1982 Convention and other rules of International Law, particularly in respect of navigation, health, customs, immigration and preservation of the environment.

(4)     The right to take the necessary steps in its territorial Sea to prevent passage which is not innocent.

(5)     The exercise of criminal jurisdiction on board of a foreign ship (arresting any person or conducting any investigation in connection with any crime committed on board of the foreign ship) in the following cases: if the consequences of the crime extend to it; if the crime is of a kind to disturb the peace of the country or the good order of its territorial sea; if the assistance of the local authorities has been requested; if the measures are necessary for the suppression of illicit traffic in narcotic drugs; or after leaving its internal water.

(6)     The exercise of civil jurisdiction in relation to a foreign ship (levy execution against or arrest the ship for the purpose of any civil proceedings) in respect of obligations or liabilities assumed or incurred by the ship itself in the course or for the purpose of its voyage through its waters, or in respect of any civil proceedings against a foreign ship after leaving its internal waters.


[1] Art. 2 UN Convention on the Law of the Sea; Arts 1–2, Geneva Convention on the Territorial Sea and the Contiguous Zone

[2]UNITED NATIONS CONVENTION ON THE LAW OF THE SEA, retrieved 27 April 2016.

[3]https://sites.google.com/site/walidabdulrahim/home/my-studies-in-english/12-the-law-of-the-sea

[4] The 1982 Convention on the Law of the Sea, Article 2, 21, 22, 25-28.

Independence Day

Independence Day is annually celebrated on 15 August, as a national holiday in Indiacommemorating the nation’s independencefrom the United Kingdom on 15 August 1947, the day when the provisions of the Indian Independence Act 1947, as passed by the United Kingdom Parliament, which transferred legislative sovereignty to the Indian Constituent Assembly came into effect. India retained King George VI as head of state until its transition to full republican and Constitution of India 1950 replaced the dominion prefix, Dominion of India with the enactment of the sovereign law Constitution of India. India attained independence following the Independence Movement noted for largely non-violent resistance and civil disobedience.

RATAN TATA : REAL SON OF GOD

Ratan Naval Tata

One of the most well-known and respected industrialists in India, Ratan Naval Tata is the Chairman of Tata Sons and Tata Group. At the age of 73, Tata heads one of the country’s largest conglomerates which comprise nearly 100 firms with revenues totaling about USD 67 billion. He is also the chairman of major Tata companies such as Tata Steel, Tata Motors, Tata Teleservices. Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, and The Indian Hotels Company.
Tata was born on December 28, 1937 in Mumbai, in one of the richest families. His great grandfather was Jamsedji Tata, founder of the Tata group. As a young boy, Tata had a disturbed childhood after his parents split. He was raised by his grandmother, Lady Navajbai in the lap of luxury at Tata Palace. America held a special fascination for the Tata scion and he went to Cornell University to study architecture and structural engineering. Later he pursued a management course from Harvard University.

In 1962, he joined the Tata Group and his first job involved working with the Tata Steel division in Jamshedpur, where he worked with the blue-collar employees shoveling stone and working with the furnaces. He was appointed the Director-in-Charge of the National Radio & Electronics Company Limited (Nelco) in 1971 and was successful in turning Nelco around.

Tata later paved his way to become the Chairman of Tata Industries and was instrumental in ushering in a wide array of reforms. It was under his stewardship that Tata Consultancy Services went public and Tata Motors was listed in the New York Stock Exchange giving it more international power and recognition. He is credited with leading the Tatas’ successful bid for Corus- an Anglo-Dutch steel and aluminum producer as well as Jaguar and Land Rover brands from the Ford Company.

During his tenure the company witnessed the launch of india’s first truly Indian car, ‘Indica’. The car was the brainchild of Tata. In 2000 Tata’s food division acquired tea firm Tetley for GBP 70 million. In the year 2009-10 the group’s revenues have grown nearly 12-fold, totalling USD 67.4 billion. Tata also serves on the boards of Fiat SpA and Alcoa and is also on the international advisory boards of Mitsubishi Corporation, the American International Group, JP Morgan Chase, Rolls Royce, Temasek Holdings and the Monetary Authority of Singapore.

In year 2000, he was honored with Padma Bhushan by the government of India. He was also conferred an honorary doctorate in business administration by Ohio State University, an honorary doctorate in technology by the Asian Institute of Technology, Bangkok, and an honorary doctorate in science by the University of Warwick. Tata has a personal fortune of GBP 300 million and owns less than 1% of the colossal group. Over two thirds of Tata Group is owned by charitable trusts that finance good causes.

Tata set a perfect example of generosity and leadership during the 26/11 attacks. Unarmed he stood all alone outside the Taj hotel and supervised the activities to help the victims. He showcased his humane gesture by personally visiting the families of all the 80 employees who were killed or injured. He left no stone unturned to provide relief to the victims and even asked the families and dependents as to what they wanted him to do.

His retirement may still be a year away, but Tata has started chalking out plans on his post-retirement. He plans to set up a design centre of international standards and scale. He has led development of many innovative designs and products, the most celebrated being Nano. The idea of Nano was born with his concern for the safety of nuclear families commuting on two-wheelers. He was the one who suggested that the miniature car should be fitted with just one windscreen wiper. This reduced its price and maintenance cost.

HAPPINESS- how dependant it is on external factors:

Happiness, that’s a choice. A choice, and it comes from within, not from outside. 

It is absolutely true that happiness is not dependent on external factors. In the opposite, our happiness rests solely in ourselves, on our inner influences. 

Money cannot buy you happiness.

external factors which are big house, car, lucrative career, immense wealth, property, expensive electronic items, lavish furniture and last but not least excess financial status may make your day, and make you smile, but if you are not happy, or are sad in the first place, they will not make you happy!

Happiness is celebrating the small essence of life. 

Happiness is more about life and being happy for all the blessings we have. The greatest aspect is that we are satisfied for small stuff that we do, people do, or what we have. Real joy is throwing it away.

A little smile, a little charity, a donation of food, essential items for the needy, and sometimes even in this difficult time giving financial assistance to the poor, is enough to make one happy.

When this contagious disease spreads, people lose their lives, it points out that being alive is happiness itself. Life can not be bought. Being able to live, thank God for all that He gives us, praying, meditating are all our true sources of joy.Being inside, practicing meditation and relaxation exercises, planting, watering seeds, reading a novel, blogging, watching Ramayana and Marabharat with your children, all of these really give you the feeling of doing something imaginative and inventive. The very essence of knowing that you can change something or do something for society is happiness.

If we look around us, when we are all in our houses, we enjoy a lot of stuff. Being around loved ones, not heading away, listening to music, snorting animals, calm waters of rivers, a nice feeling, a glimpse of the range, no noisy sound of horns or cars, is a gift in disguise.We are now giving space to our relationships, enjoying, believing in the power of social distancing, maintaining hand hygiene, controlling the infections of the entire environment and of ourselves. 

We did a lot of new things a few days back in our country due to PM. All of this has instilled in us all a feeling of cohesion and solidarity.If it’s ringing bells, clapping or even lighting diyas, candles or utilizing smartphone flashlights, it’s all too simple but at the same time too pleasant. All age groups could be seen doing these little activities at the prescribed date and time. It is a joyful task for some people to sleep peacefully or play with pets.

If wealth is lost ,nothing is lost

If health is lost, something is lost

If character is lost then everything is lost

Happiness can never be tied to outside factors. In our minds and souls, joy is everything. If we want to be positive, then we are satisfied and if we choose to feel unhappy over past things no one will support. In fact, our inner thoughts, our own motivation, decisions , actions and good deeds for our society, family, country, and other people make us happy.As long as we behave as humans with empathy, compassion towards others, understanding, change, no aspirations, and above all having inner confidence that all is good and will be better in the future, we are bound to be genuinely content, productive and ultimately safe.

SUPREME COURT REVIVES PUNISHMENT PUNISHMENT OF EX LT. COL. S.S BEDI

The Supreme Court has reestablished the discipline of the punishment of cashiering to Ex. Lt. Col. S. S. Bedi who was a Medical Specialist in the Indian Army Medical Corps found as liable of the charge of using criminal power against two ladies patients.

The Supreme Court held, “We restore the punishment of penalty by considering the indefensible conduct of the Appellant misusing a place of trust being a Doctor which isn’t condonable. Be that as it may, we direct the Respondents to consider the whole record of service of the Appellant and his propelled age while taking a decision to start procedures under the Army Pension Regulations.”

A three-judge Bench of Justice Nageswara Rao, Hemant Gupta and Ravindra Gupta was not convinced with the reasons given by the Tribunal for changing over the sentence from cashiering to imposition of fine of Rs.50,000 and directed revival of the punishment.

An appeal was documented by Ex. Lt. Col. S. S. Bedi tested the judgment of the Armed Forces Tribunal, Principal Bench, New Delhi affirming request of his conviction by the General Court Martial.

The Tribunal had anyway changed over the sentence of cashiering from administration into a fine of Rs.50,000/ – The Union of India had documented an appeal oppressed by the modification of sentence from cashiering from administration to inconvenience of fine.

The Appellant Mr Bedi was commissioned in the Indian Army Medical Corps in 1966 and was posted at Base Hospital Lucknow as a Medical Specialist in 1984.

An objection was made by two ladies against him in 1986 that he behaved badly with them during test by touching their genitals. He was charged for carrying out a civil offense and using criminal power on two ladies with purpose to shock their modesty, as opposed to Section 354 of the Indian Penal Code, 1860 (IPC). The Appellant was held liable by the General Court Martial and was sentenced to be cashiered from service on fourteenth Jan 1987.

The conviction and sentence of the General Court Martial were tested by the Petitioner before the Delhi High Court in the year 2010 and was moved by the Delhi High Court to the Principal Bench of the Armed Forces Tribunal, New Delhi. The Tribunal maintained the conviction of the Appellant however changed over the punishment of cashiering to a fine of Rs.50,000/ – .

The Counsel for the appealing party Mr. Sridhar Potaraju, had submitted before the Supreme Court that the conviction of the Appellant is impractical as the proof on record was not appropriately valued by both the General Court Martial and the Tribunal.

Additional Solicitor General showing up for the Respondent reacted by contending that there was .plentiful proof on record highlighting the guilt of the Appellant which has been appropriately valued by the General Court Martial and the Tribunal.

He informed the Court that the Respondents are just worried about the conversion of the punishment of cashiering to a fine of Rs.50,000, which as indicated by at that point was unjustifiable. The Appellant had misbehaved with two patients and the expert proof additionally shows that there was no need of the Appellant touching the private pieces of the complainant.

The Apex Court concurred with the conclusion of the General Court Martial and the Tribunal that the Appellant is liable of the charge of using criminal power against two ladies patients and denied the dispute that the conviction was unreasonable.

CENTRE TRANSFERS SUSHANT’S DEATH CASE TO THE CBI

Adding another layer to the debate encompassing the demise of actor, Sushant Singh Rajput, the Center has now acknowledged the Bihar government’s proposal for a CBI probe into the case. This was informed to the Supreme Court by Solicitor General Tushar Mehta today.

The court was hearing Rhea Chakraborthy’s plea looking for transfer of a FIR documented against her by Sushant Singh Rajput’s father from Patna to Mumbai and a stay on the investigation by the Bihar police.

The request documented by Rhea expresses the FIR in Patna asserting abetment to suicide charges against her is only a demonstration of “conspiracy” between the State of Bihar and the father of the late Actor.

Justice Hrishikesh Roy stated: “Rajput was a skilled artist who died under unordinary conditions. In the event that there is culpability involved, it should be examined.”

He added: “Everybody has a sentiment about prominent cases, however we will continue as per law. Let the Maharashtra government react to what Solicitor General Tushar Mehta has submitted.

Senior Advocate Shyam Divan, showing up for Rhea, argued that a defensive request be passed for the petitioner. But, Senior Advocate Vikas Singh, showing up for the Rajput family, brought up criticisms and presented that no defensive request ought to be passed as it could prompt altering of proof.

Justice Roy was not satisfied with the isolating of the Bihar police in Maharashtra and stated: “The quarantining of the Bihar police doesn’t send a good message. The imprisonment ..does it send a good message? Particularly when the case has gathered so much media attention? State of Maharashtra needs to guarantee that everything is done in proper manner.”

The bench has allowed three days to all parties to gather the documents. State of Maharashtra has been asked to update on condition of the investigation by Mumbai police. Matter will be recorded one week from now.