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Indian Express Explained 02/06/2020

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1)Cyclone Nisarga Explained: How big is the threat on west coast?

Just after a week of AMPHAN cyclone, West Coast is bracing for another cyclone. It is in the earlier stages of depression, it will turn into deep depression.

Name of the Cyclone : NISARGA

At its strongest, Nisarga would be associated with wind speeds in the range 95-105 km per hour. Amphan, on the other hand, was classified as a super-cyclone, of category 5, though it had weakened to category 4, ‘Extremely Severe Cyclonic Storm’, ahead of its landfall, at which time the wind speeds were in excess of 180 kph.

ROute of NISARGA CYCLONE

Difference between the Cyclones of Arabian Sea and the Bay of Bengal :- Cyclones formed in the Bay of Bengal side of the north Indian Ocean are more frequent and stonger than those on the Arabian Sea side. Meteorologists suggest the relatively cold waters of the Arabian Sea discourage the kind of very strong cyclones that are formed on the Bay of Bengal side; Odisha and Andhra Pradesh face the brunt of these cyclones every year.

Last year, however, was slightly unusual as the Arabian Sea saw the most frequent and intense cyclonic activity in more than 100 years, according to India Meteorological Department. Five cyclones originated in the area in 2019 — Vayu, Hikka, Kyarr, Maha and Pavan – when normally only one or two are formed.

2)Explained: Why Moody’s downgraded India’s rating, what the implications may be

What has happened :- On Monday, Moody’s Investors Service (“Moody’s”) downgraded the Government of India’s foreign-currency and local-currency long-term issuer ratings to “Baa3” from “Baa2”. It stated that the outlook remained “negative”.

The latest downgrade reduces India to the lowest investment grade of ratings and brings Moody’s — which is historically the most optimistic about India — ratings for the country in line with the other two main rating agencies in the world — Standard & Poor’s (S&P) and Fitch.

What is the reason for this downgrade?

There are four main reasons why Moody’s has taken the decision.

1. Weak implementation of economic reforms since 2017

2. Relatively low economic growth over a sustained period

3. A significant deterioration in the fiscal position of governments (central and state)

4. And the rising stress in India’s financial sector

What is the meaning of Negative Outlook:– “The negative outlook reflects dominant, mutually-reinforcing, downside risks from deeper stresses in the economy and financial system that could lead to a more severe and prolonged erosion in fiscal strength than Moody’s currently projects”.

In other words, a “negative” implies India could be rated down further.

The low effectiveness of policy and the resulting loss of growth momentum is evidenced in the sharp deceleration in India’s GDP growth rates. The provisional estimates for 2019-20 were pegged at 4.2% — the lowest annual growth in a decade — and even these estimates are likely to be revised down further.

3) Fugitive Economic Offender:- A fugitive economic offender is an individual who has committed some specified offence(s) involving an amount of one hundred crore rupees or more and has absconded from India or refused to come back to India to avoid or face criminal prosecution in India.

A Fugitive Economic Offender is a person declared so by a ‘Special Court’ set up under the Prevention of Money-laundering Act (PMLA), 2002, against whom an arrest warrant has been issued in respect of any of the economic offences provided in the schedule to Fugitive Economic Offenders Bill, 2018 and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution. Offences under some 15 Acts are listed in the Schedule to the Bill.

The word is defined in Section 2(1)(f) of the Fugitive Economic Offenders Bill, 2018 which lays down measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. This Bill as introduced in the Parliament on 12 March 2018 may be seen here. As this could not be passed in the Parliament in that session, the Union Cabinet, in its meeting held on 21 April, 2018, decided to promulgate the Fugitive Economic Offenders Ordinance, 2018 and the same was notified on 21 April 2018. The relevant Rules were notified on 24 April 2018.

The cases where the total value involved in such offences is Rs.100 crore (approx US$15 million) or more, will come under the purview of this Bill. Hence, a fugitive offender term applies only to those who owe more than Rs. 100 crore in the domestic territory of India.

placing the burden of proof for establishing that an individual is a fugitive economic offender is on the Director or the person authorised by the Director appointed under section 49(1) of PMLA.

Implications of Being a Fugitive Economic Offender:- The property of a fugitive economic offender, resulting from the proceeds of crime, including benami property, can be confiscated once he is declared so by the Court (Provisional attachment may happen before confiscation). Properties abroad are also liable for confiscation. Further, he would be disentitled from defending any civil claim. An Administrator will be appointed to manage and dispose of the confiscated property.

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