TNPSC Current Affairs April 22, 2020

www.tnpsc.academy – TNPSC Current Affairs April 22, 2020 (22/04/2020)

Topic: Court Verdicts in India, Political System in India

Vijay Mallya loses extradition appeal in UK

A UK High Court has dismissed fugitive liquor baron Vijay Mallya’s appeal against extradition to India.

What’s the issue?

Mallya and his firm – Kingfisher Airlines Ltd, have come under the scanner of the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), Serious Fraud Investigation Office (SFIO) and the Securities and Exchange Board of India (Sebi) for loan defaults of over Rs 10,000 crore to a consortium of Indian banks led by the State Bank of India (SBI).

While Mallya is facing charges of cheating, criminal conspiracy, money laundering and diversion of loan funds, a few of his companies including Kingfisher Airlines are facing charges of violations of the Companies Act 2013 and Sebi norms. Mallya, has denied any wrongdoing.

Charges against Mallya:

ED has charged Mallya under sections 3 and 4 of the Prevention of Money Laundering Act (PMLA). CBI has charged Mallya under section 120B (criminal conspiracy), 420 (cheating) and under sections 13 (1) (d) and 13 (2) of the Prevention of Corruption Act.

What are the options for Vijay Mallya now?

Mallya now has 14 days to apply to the UK High Court for permission for an application to certify that a point of law of general public importance has been overlooked by both the magistrate court and the high court.

If the High Court gives such a permission, he can then appeal against the extradition order in the UK Supreme Court. In case the High Court refuses the permission, Mallya will not be able to appeal in the Supreme Court.

In such a situation, his case will go to the UK secretary of state, Home Department for a final decision on extradition. If secretary gives her consent, Mallya can be extradited to India.

First person to be declared a fugitive offender:

Vijay Mallya is also the first person to be declared a fugitive offender under the Fugitive Economic Offenders Act.

Definition- Fugitive Economic Offender:

A person can be named an offender under this law if there is an arrest warrant against him or her for involvement in economic offences involving at least Rs. 100 crore or more and has fled from India to escape legal action.

Topic: Latest Reports and Events

World Press Freedom Index 2020

The World Press Freedom Index 2020 has been released by the media watchdog group Reporters Without Borders. Norway ranks first for the fourth consecutive year and Finland and Denmark in second and third place.

Impact of Coronavirus pandemic:

The coronavirus pandemic may threaten press freedom and worsen the crises that reporters around the world are facing.

The pandemic has already redefined norms. The pandemic has allowed governments to take advantage of the fact that politics are on hold, the public is stunned and protests are out of the question, in order to impose measures that would be impossible in normal times.

United States and Brazil were becoming models of hostility toward the news media. China, Iran and Iraq are criticised for censoring coverage of the coronavirus outbreak.

India’s performance:

India has dropped two places to be ranked 142nd. With no murders of journalists in India in 2019, as against six in 2018, the security situation for the country’s media might seem, on the face of it, to have improved.

Topic: Current Socio-Economic Issues

Why oil prices fell below zero?

Prices of West Texas Intermediate (WTI) in the US, recently fell to “minus” $40.32 a barrel.

This the lowest crude oil price ever recorded (the previous lowest was immediately after World War II). At this price, the seller of crude oil would be paying the buyer $40 for each barrel that is bought.

But, What Negative Oil Prices Really Mean?

Firstly, WTI oil is traded as futures contracts in the NYMEX (New York Mercantile Exchange) where traders buy and sell monthly futures such as, for instance, May futures, June futures and so on.

The contract for West Texas intermediate crude, or WTI, is the benchmark for US crude oil prices. On April 20, it crashed 300 per cent from US$17.85 a barrel to minus US$37.63.

The price of a barrel of crude varies based on factors such as supply, demand and quality. Supply of fuel has been far above demand since the coronavirus forced billions of people to stop travelling.

Because of oversupply, storage tanks for WTI are becoming so full it is difficult to find space.

Each contract trades for a month, with the May contract due to expire on 21 April. Investors holding May contracts didn’t want to take delivery of the oil and incur storage costs, and in the end had to pay people to take it off their hands.

Why the oil prices are falling?

Situation prior to COVID- 19 outbreak:

Even before the COVID-19 outbreak induced lockdowns across the world, crude oil prices had been falling over the past few months. The reason was too much supply and too little demand.

In early March, Saudi Arabia and Russia disagreed over the production cuts required to keep prices stable. As a result, oil-exporting countries, led by Saudi Arabia, started undercutting each other on price while continuing to produce the same quantities of oil.

This was an unsustainable strategy under normal circumstances but what made it even more calamitous was the growing spread of novel coronavirus disease, which, in turn, was sharply reducing economic activity and the demand for oil.

Post- lockdown:

With each passing day, the developed countries were falling prey to COVID-19 and with each lockdown, there were fewer flights, cars and industries etc. using oil.

This meant that the supply-demand mismatch continued to worsen right through March and April.

How will this impact India?

The Indian crude oil basket does not comprise WTI — it only has Brent and oil from some of the Gulf countries — so there is no direct impact. But oil is traded globally and weakness in WTI is mirrored in the falling prices of the Indian basket as well.

There are two ways in which this lower price can help India:

If the government passes on the lower prices to consumers, then, whenever the economic recovery starts in India, individual consumption will be boosted.

If, on the other hand, governments (both at the Centre and the states) decide to levy higher taxes on oil, it can boost government revenues.

What is Benchmark crude?

It is a crude oil that serves as a reference price for buyers and sellers of crude oil. There are three primary benchmarks, West Texas Intermediate (WTI), Brent Blend, and Dubai Crude.

Other well-known blends include the OPEC Reference Basket used by OPEC, Tapis Crude which is traded in Singapore, Bonny Light used in Nigeria, Urals oil used in Russia and Mexico’s Isthmus.

Topic: Latest Diary of Events

Civil Services Day – April 21

Observed on 21st April every year. On this day in 1947, Sardar Vallabhbhai Patel addressed the first batch of probationers at the All India Administrative Service Training School at Metcalfe House, New Delhi in 1947. In his speech he called civil servants as the steel frame of India.

Objective: To make civil servants re-dedicate themselves to the cause of the citizens and renew their commitment to public service.

On this day, the ‘Prime Minister Award for Excellence in Public Administration’ is given. The award is given in three categories, dividing the states and UTs into different categories. The award was instituted in 2006.

Topic: Terms in News, Latest Diary of Events

Sepsivac

Sepsivac- the Drug for sepsis will be tested for COVID-19.

Key facts:

Sepsis occurs when chemicals released in the bloodstream to fight an infection trigger inflammation throughout the body. This can cause a cascade of changes that damage multiple organ systems, leading them to fail, sometimes even resulting in death.

Symptoms include fever, difficulty breathing, low blood pressure, fast heart rate and mental confusion.

Topic: Discovering of New Species

Trimeresurus Salazar – Arunachal Pradesh

The Indian Herpetologists discovered new species of viper family in the Pakke Tiger Reserve in Arunachal Pradesh. It has been named after a Harry Potter fictional character, Salazar Slytherin.