Sumant Kumar Follow VERIFIED An NIT Allahabad Graduate. Computer Sci&Engg. Have written UPSC Mains 2 times with Physics. Follow me for TheHindu News/Edit+ CA Analysis 40,774 Views in last 30 days N 109,422 Lifetime Views UpVote, Rate, Review. Share 8 Courses 3.9k Followers Following PDFs, Notes, Materials? uman uFacebook ID: AdSumant Telegram Ch: AdSumant unacademy:com/user/AdSumant By Sumant Kumar (Hindi) Mock Test 1 for UPSC Prelims 2018/2019 (Hindi) April 2018: The Hindu Daily News & Editorial Analysis... 147 ratings 38 reviews 72 tatings 21 reviews
A failure of governance [VVI GS4 Ethics, Conflict of Interest] Let us recount the salient facts in brief. OIn April 2012, ICICI Bank made a loan of 3,250 crore to the Videocon group. Ms. OMr. Gupta's letter to the PM had said that Ms. Kochhar's husband had had a business OThere would thus be a clear conflict of interest[GS4 Ethics] in Ms. Kochhar being party OThe issue at the heart of the controversy is simple enough: did Ms. Kochhar disclose Kochhar was the bank's CEO at the time. partnership with the Videocon group prior to the sanction of the ICICI loan to the sanction of a loan to Videocon. the conflict of interest to the board and recuse herself from all matters concerning Videocon? If she did not do so, it is sufficient ground for the board to ask Ms. Kochhar to step down as CEO. The board of ICICI Bank has ordered a probe into allegations levelled against its CEO, Chanda Kochhar. OThese constitute lapses in governance at a bank that has been characterised as "systemically important" by the regulator.
A whistle-blower. DOn March 28, the Chairman of ICICI Bank's Board, M.K. Sharma, issued a statement expressing the board's full confidence in Ms. Kochhar. OIn April, media reports said that Mr. Sharma had carried out an internal inquiry in 2016 itself and had found no evidence of wrongdoing on Ms. Kochhar's part. End of story, or so the ICICI Bank board would have liked. However, the controversy would not die down. Investors and media analysts have been relentlessly pressing the board for a better response. Following charges made by a whistle- blower, the board has now authorised the chairman of the Audit Committee to select an appropriate person to head an independent probe. Sharp questions Three questions arise. OFirst, after having stood steadfastly by its CEO for over two months, why has the board opted for a probe now? OSecond, is a probe by an outsider required at all? Third, should Ms. Kochhar continue in office during the period of the inquiry?
It is not necessary to establish a quid pro quo in the relationship for the board to decide whether Ms. Kochhar should step down. That is a separate matter to be pursued by the law enforcement authorities. Non-disclosure of conflict of interest and non-recusal are grave enough lapses. No deep probe, no forensic analysis, no great legal expertise is required to answer the elementary question posed above. The board of directors is perfectly competent to answer it by having the relevant documents placed before it. OThat is what the board should have done in March when the controversy erupted OThe drama that has unfolded since is uncalled for and could have been avoided if only the board had done the right thing earlier Some of the other arguments made in defence of the CEO amount to a red herring drawn by interested parties For instance, Mr. Sharma has defended Ms. Kochhar on the ground that ICICI Bank had assumed a share of only 10% of the total loan given by a consortium of banks and the loan itself had been made in accordance with the bank's norms o This does not wash. It is not that a conflict of interest arises only when a loan is made in violation of norms; the conflict does not go away even when the loan decision is in conformity with norms. o The conflict of interest does not end with the sanction of a loan. o It extends to post-loan monitoring and the readiness of the lender to exit a relationship where problems are brewing. o It applies also to recognition of a loan as a non-performing asset and steps taken to effect recovery. O It was incumbent on Ms. Kochhar to have distanced herself from all matters related to Videocon.
Now that the board has decided to have a comprehensive probe, one that could stretch over several weeks or months, Ms. Kochhar's status during the period is an important issue. The board has denied having asked Ms. Kochhar to go on leave. It has said that her current leave had been planned in the normal course. Does this mean that she will continue to helm the company on her return from leave? O If yes, it is a highly unsatisfactory state of affairs. O Just think of the plight of those reporting to Ms. Kochhar and the morale in the organisation in general when its CEO is the subject of an extended probe O The correct and proper course would be to ask Ms. Kochhar to step down as CEO until the probe is completed.
Preventing the next health crisis In March, the government announced that it would release an annual "state of nutrition" report, detailing India's level of stunting, malnutrition and feature best practices for States to scale up nutrition interventions It is clear that India has a lot to do to tackle nutrition challenges - 26 million children suffer from wasting (a low weight-for-height ratio), more than in any other country. Yet, the country has the second highest number of obese children in the world 15.3 ilion in China and 14.4 million in India .While tackling undernutrition through assurance of adequate nutrition (usually interpreted as dietary calories), we need to ensure that it is also about appropriate nutrition (the right balance of nutrients) Our policy response has to move from "food security" to "nutrition security". achaeraenertioap tae county has heth New problem India must step up its efforts to fight overweight and obesity just as it has been doing with wasting and stunting. Between 1980and 2015, obesity doubled for children and tripled for adults; an additional 2.6 million children will be obese in India by 2025, a trend that will not reverse without action Rising obesity is putting pressure on already fragile health systems in India by posing a high risk of chronic diseases such as cardiovascular diseases, diabetes and some cancers (clubbed together as non-communicable diseases, or NCDs) Research shows that Indians have higher levels of body fat and lower levels of lean muscle when compared to many other populations. Therefore, the risk of cardiovascular diseases and diabetes operates even below global thresholds for defining overweight and obesity. Hence the urgency to take public health measures. Apart from a high burden of premature mortality, these threats are something that India can ill-afford to ignore as it looks ambitiously toward a universal health coverage system where everyone can access quality health services that are free of financial burden.
A tale of two countries [GS1 Post Independence India] Carved out of the same political fabric in 1947, India and Pakistan were expected to be identical twins. .Soon after Pakistan's creation, power gravitated to the office of the Governor-General or President outside the control of Parliament. This trajectory reached its zenith with the assumption of power in 1958 by Army Chief Ayub Khan. Since then, the military has called the shots in Pakistani politics. India launched itself on a very different route. The Constitution was framed in record time, powers of the different arms of government were clearly demarcated, and above all the armed forces were made subject to civilian authority. Prime Minister Jawaharlal Nehru made it very clear in the context of the Menon- Thimayya differences in 1959 that, regardless of the merit of the case, "civil authority is and must remain supreme". This doctrine of civilian supremacy is one of Nehru's greatest gifts to the nation.
The underlying reason for the supremacy of civilian institutions in India and their decimation in Pakistan was the difference in the nature of the Congress and the Muslim League 1.The Congress had a countrywide organisational structure and a leadership whose legitimacy was uncontested o In contrast, the Muslim League hardly had any roots in Pakistan because its base lay in the Muslim minority provinces that remained in India o It was easy for the army-bureaucracy nexus to arrogate all power to itself in the absence of a political balancer 2.The second major reason lay in their radically different ideological underpinnings. o Pakistan was created on the basis of an exclusivist ideology that increasingly disqualified more and more segments of the population from access to power. o This was a recipe for mayhem that has turned Pakistan into a failing state. o India chose to adopt secularism as its guiding philosophy. o In the first four decades of its existence, India tried to approximate this ideal even if it did not achieve it all the time. o The story of the last 25 years, beginning with the demolition of the Babri Masjid followed by the Gujarat pogrom, has been very different, foreshadowing trends clearly visible today.
What is disturbing is how much India has begun to emulate Pakistan. OAs the Indian army has become increasingly engaged in domestic order maintenance, its footprint in domestic politics has amplified. political. DAll this is bound to whet the officer corps' political appetite. ruling party has pursued majoritarian policies and legitimised rhetoric OServing generals have taken to making statements that border on the ORetired officers have entered the political arena in droves. The Indian state's commitment to the secular ideal has eroded as the bordering on hate speech. OThe vision of a "Hindu rashtra" is gaining increasing acceptability. Unless this exclusivist trend is reversed, India may descend down the same road that Pakistan has done, to its great detriment.
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