Finance market in India

Finance – Debt vs Equity

Debt – Bond

I write on a piece of paper: “To whoever pays me Rs.1000, I’ll pay annual 10% interest rate (Rs.100). And after 5 years, I’ll also repay the principle amount Rs.1000. No “ifs” and “buts”.
This is one type of security paper. We call it “BOND”.
IF you hold my bonds, I’m liable to pay you money no matter what happens. Whether my ice-cream company actually makes profit or goes Kingfisher. I have to keep paying fixed money to you, every year.

Junk Bonds

If my Bond gets “C” or “D” rating, it means I’m not creditworthy, I may default on this loan, I may run away. So my bond is as junk as Ra.One movie. A wise man will not invest in it.

So, how can I seduce you into purchasing my junk bonds ? By providing Higher Interest rates
This is also known as “High Yield Bond”, because you’re getting higher profit

Gilt Edged Securities

Such bonds which has high credit rating , and so less risks, so if such govt. or companies issues bond , they offer loss rate of interest – k/as Gilt Edged Securities

Bearer Bonds / Bad Guys

Bearer bonds are same as regular bonds, but they don’t have “Holder’s Name” on them. These bearer bonds have coupons attached with them. So, if you don’t want to withdraw the whole money, you can cut a few coupons and sell them to a broker to withdraw partial amount.
Noone can keep a track of who withdrew the money, who’s buying, who’s selling Because there are no “names”, addresses or records. Bad guys like it, because this ensures anonymity.
Government issue bearer bonds – Because at that poin of time , they’re in dire need of money, there is emergency, there is war going on, they cannot waste time in checking the lengthy registration forms. So, Better just sell the bonds to any swinging dude that comes, without asking his name, address, mobile number or email id.

Equity : IPOs and Shares

Equity : Take money from you and giving up of ownership “Assuming that I need 1 crore rupees to start my company and I’ve 30 lakhs in my savings. So, I write on a piece of paper: “ I’ll give 0.0001% ownership of my company to whoever gives me Rs.1000”.
This is again a type of ‘security-paper’. But since I’m sharing a part of ownership with you, in crude terms, we’ll call it “Share”.
Then I print 10,000 such papers. What’s the value of these papers?
10,000 Papers multiplied with Rs.1000 each =1 crore. Voila that’s total money I need.
And since I already have Rs.30 lakhs, I can purchase 3000 shares. (because 3000 papers x Rs. 1000 each = 30 lakhs)
So out of the Total 10,000 shares that I printed, I will own 3,000 shares, so percentage wise I own 30% of this company’s equity.”

If there is 25 lakhs profit , and I have 30 % of company’s shares ,and board of diectors decide to take 10 lacs as dividend , then I distribute Rs. 10 lakhs as Dividend among the shareholders in which I get 3 lacs and shareholders gets 7 lacs . Now about the remaining 15 lakhs, invest them back in the company to expand our production-capacity , buy bigger machines and install new factories .

IPO – Initial Public offering / Shares

When I sell my share papers for the first time, to the public, it is called IPO (initial public offer)
Then you (the buyers of these IPOs), sell these papers to each other, the same paper is called “Share” or  “Equities”.

Primary market = this is the Place where IPOs are sold,
Secondary Market= this is the place where IPOs are re-sold as shares.
Physically both things are done in the same place e.g. BSE (Bombay Stock Exchange) but this virtual classification helps in keeping track of things, making statistical analysis etc.

SEBI U K Sinha

“Securities and Exchange Board of India (SEBI) on Thursday asked all listed public sector undertakings (PSUs) to ensure at least 25 per cent public shareholding within three years and unveiled new norms for research analysts, employee stock option schemes as well as reforms to boost the primary market. Under current norms, government undertakings should have at least 10 per cent public shareholding whereas for non-PSU firms the minimum level is 25 per cent.The decision, aimed at ensuring uniformity among listed entities irrespective of their promoters, would also help the government raise close to Rs.60,000 crore from the sale of shares in around 36 listed PSUs where the public shareholding is less than 25 per cent.
Besides, the capital market watchdog has decided to share know your client (KYC) information with entities regulated by other financial sector watchdogs, a move aimed at having common norms across the financial market.
Looking to revive the primary market, the market regulator has eased norms related to the size of an initial public offer (IPO) and pricing of preferential shares while allowing anchor investors to have a greater exposure to the offering. All companies with a post-issue capital above Rs.4,000 crore are compulsorily required to offer at least 10 per cent stake in the IPO. In other IPOs, minimum dilution to public will be 25 per cent, or Rs.400 crore, whichever is lower. Meanwhile, to safeguard investors from manipulative reports and usher in more transparency, the SEBI board has approved detailed norms for ‘research analysts’ that include stringent disclosure requirements. “In India, research analysts were not being regulated. Now we have provided that all the people who are doing research reports they will be regulated, there will be a requirement, registration with SEBI and post-registration they will have certain disclosure requirements,”
Meanwhile, retail investors would now get a 10 per cent reservation in an offer for sale (OFS) and could also look forward to discounts by entities selling shares through this route. Further, the proposal allowing non-promoter shareholders having over 10 per cent stake to use the OFS mechanism has been cleared by the SEBI board. Over 100 companies have tapped the OFS route raising about Rs.50,000 crore since its introduction in February 2012.
SEBI has decided to make OFS route available to the top 200 listed firms by market capitalisation, compared with the top 100 listed companies at present.
The SEBI board also approved an easier set of regulations for employee stock option schemes that among other things would classify ESOP Trusts as a separate category of shareholding entities.

With new regulations for ESOPs, the regulator has allowed companies to have employee stock option programmes where they can buy their own company shares subject to certain conditions.

Further, a transition period of five years has been given to comply with various requirements including re-classification of “shareholding of existing employee benefit schemes separately from ‘promoter’ and ‘public’ category”. Regarding sharing of KYC details with other entities, Mr. Sinha said it was a “move towards aligning one single KYC across the financial market. So this is a first move in that direction which will be very very investor-friendly”.”
Sebi floats crowdfunding rules or collection of funds thru web based paltforms and social networking sites- to help start up companies raise capital and also check misuse of such avenues SEBI’s plan of allowing only ‘accredited investors’, defined as institutions, companies, high networth investors (HNIs) and ‘eligible’ retail investors, to take up crowd-funding Crowd-funding is more democratic — it allows investors with modest sums to come together in large numbers to kick-start a new venture. True, startups are risky investments with high failure rates and poor liquidity (the investor can exit only if the business is listed or sold). But this can easily be contained by ensuring that only a small portion of the investor’s portfolio is deployed in crowd-funding. This could be through a monetary limit (₹60,000 or 10 per cent of net worth, as SEBI suggests), while doing away with the other conditions. The disclosures mooted by SEBI — audited financials and a prospectus describing the business plans and promoters — should adequately inform prospective investors of the risks of startup funding. SEBI’s conditions for the firms who can tap this platform also seem too limiting. The ₹10-crore limit on each issuer appears reasonable to curb systemic risks, but the rule on the age (the entity should be less than four years old) is irrational.
Securities and Exchange Board of India issued an order prohibiting an offshore hedge fund — Factorial Master Fund, which was found guilty of insider trading

ESOS and ESPS – Employee stock option scheme and employee stock purchase scheme

QIP

“Qualified institutional placement (QIP) is a capital-raising tool, primarily used in India and other parts of southern Asia, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer (QIB).
The Securities and Exchange Board of India (Sebi) introduced the QIP process in 2006, to prevent listed companies in India from developing an excessive dependence on foreign capital.

The complications associated with raising capital in the domestic markets had led many companies to look at tapping the overseas markets via Foreign Currency Convertible Bonds (FCCB) and Global Depository Receipts (GDR) to fulfil their needs. To keep a check on this process and to give a push to the domestic markets, QIPs were launched.

Apart from preferential allotment, this is the only other speedy method of private placement whereby a listed company can issue shares or convertible securities to a select group of persons. QIP scores over other methods because the issuing firm does not have to undergo elaborate procedural requirements to raise this capital.

http://articles.economictimes.indiatimes.com/2009-04-26/news/28415573_1_qip-route-institutional-placement-issue-shares”
QIP – Qualified institutional placement – Rcom raises 4800 crore thru QIP issue

Capital Market

Primary Market New securities are issure here Adv: Helps businessmen/govt raise funds IPO issued here
Help investors earn profit via dividend/ interest
Financial intermediaries earns in transaction

If lot of money in invested in primary market , It means companies are doing as many new projects / business expansion

Secondary Market The securities issued in primary market, are sold and repurchased here – k/as Share market

ECBs – External commercial borrowings when Indian company borrows money from external (non-Indian / foreign) sources.
Via bank loans, fixed rate bonds, non-convertible shares, optionally convertible or partially convertible preference shares etc.
For minimum average 3 years.

Those campanies can borrow via ECBs if they are registered under Companies Act 1956, in India

Cnt be used for share market or real-estate speculation.
Acquiring another company

Demerits If Rupee sharply weakens dollar (e.g. from 1$=Rs.50 to 1$=Rs.60), then Indian borrower will have to pay more amount of rupees to repay the same amount of loan he previously took. (because first he’ll need to convert his Indian rupee income/profit into dollar then repay the loan).

ECB reforms External Commercial Borrowings Policy during 2012-13

Infrastructure companies Infrastructure companies can borrow in Chinese currency (Renminbi/RMB)
Infrastructure companies can use 25% of the money borrowed via ECB for repaying their previous rupee debts IF they invest 75% of the ECB borrowed money to start new infrastructure projects.
SIDBI Banks as such, are not allowed to borrow via ECB route.
But Small Industries Development Bank (SIDBI) can borrow via ECB route and lend that money to micro, small, and medium enterprises (MSME) sector subject to certain conditions.
National housing bank National Housing Bank (NHB)/ Housing Finance Companies can also borrow via ECB and use that money on low cost / affordable housing units.

P Notes Participatory Notes offshore derivative instrument Tarapore Committee: Recommended Banning P-notes

“Tom Cruz wants to get maximum return on the investment in quickest possible time.
For this, Tom will have to find risky securities (shares/bonds) in third world countries, then invest money from one country to another quickly, depending on how sharemarket moves.
In India, no one can invest in sharemarket without getting PAN card + DEMAD account first. Other nations too have similar mechanism.
But if Tom tries to get PAN card and DEMAT account in each third world country, then his profit will decline- given the cost of running branch office, staff salary, DEMAT fees etc. in each country.
So, to take a shortcut, Tom will contact some ‘middleman’ who is already registered as an FII, has PAN card & DEMAT in India. e.g. HSBC.
Tom gives money to HSBC, with instruction “buy A, B and C shares/bonds in X, Y and Z quantity.”
HSBC buys Indian shares. They’ll be stored in DEMAT account of HSBC, and won’t be given to Tom.
But HSBC then gives a receipt to Tom listing the shares/bonds purchased on his behalf and stored in HSBC’s DEMAT account.
This receipt is called Participatory Note.

Tom has two options
Wait and watch. If the price of those shares go up, call up HSBC to sell them. HSBC returns principal + profit to Tom, after cutting commission. Tom returns the P-note receipt to HSBC.
Sell this P-note receipt to another foreigner say Jerry. Then Jerry again has same two options.”
“OFFSHORE : Because foreigner owning something in India, without coming to India or opening office in India.
DERIVATIVE : Because this receipt doesn’t have value of its own.It “derives” its value from the market value of shares/bonds held by HSBC. Today it may be worth $1000, tomorrow $12000 depending on how the prices of Indian securities move.
INSTRUMENT : Self-explanatory- this is one type of financial instrument to invest abroad.”

1992 SEBI had permitted P-notes, to boost foreign investment in India, after BoP crisis of 1991.
Features P-Note owner doesn’t have voting rights in the shareholder meetings
P-note owner doesn’t own the shares. (because they’re in the DEMAT account of that intermediary FII)
Constitute 13 % of total FII coming to India
Problems
P-notes can changed many hands without actual selling of stocks by transferring the receipts , so govt depreiced of capital gains tax on every transaction
P-note investments are Anonymous. Hard to trace the owner. Can be used for money laundering and terror financing.
Hot Money: can leave Indian market very soon based on just one phone call from Tom Cruz to HSBC. Hot money creates heavy rise or fall in share market, so even genuine investors’ money is lost.

Govt. Recommendations

Government must tax such P-note holders from next budget 2014 – Parthsarathi Shome
FII has to disclose P-note owner data to SEBI on quarterly basis (every 3 months). But often, within 3 months the P-notes would have changed many hands (e.g Tom to Jerry to Micky to Goofy).

Hedging Short Selling Leverage Arbitrage requires High net worth IndividualsHNIs ( who have huge money or shares )
Insider trading is the trading of a public company’s stock or other securities (such as bonds or stock options) by individuals with access to non-public information about the company. In various countries, insider trading based on inside information is illegal. This is because it is seen as unfair to other investors who do not have access to the information. Goldman Sachs director Rajat Gupta

Hedge Funds “Hedge fund is a similar investment game, where High net worth individuals (HNI) pool their money into high risky games to earn high return on investment.

Short seling Borrowing shares , selling for a short period and then buying later
Hedge Fund manager “borrows” 50000 facebook shares from a broker and immediately sells them in share market. ( as he sells , market will have abundant shares with less demand , so price falls.. similar to supplying 5000 kg of onions in the market will reduce price of onions in the market. As share prices will fall , again pay those cheap shares and earn profit
Sometimes share price may not fall down bcoz another Hedge fund manager is buying while you are selling – So you loose money
U need need massive quantity of shares to decrese their prices ( so HNIs are required)

Leverage Borrow money , buy shares and sell those shares later when the prices increase dark pool” trading operations, which allow clients to trade large blocks of shares while keeping prices private. – high frequenct traders skin profits from clients who order a astock at one price , only to end up paying more than the quoted amount after the high frequency firm pushes up the price thru a series of lightening quick transactions. Barclays for fraud over ” Dark Pool ” Trading

Arbitrage When same thing sells for different rates in two markets, Tom can take advantage of arbitrage, to make profit – buy from one stock exchange and sell to other

Mutual Funds You invest money in MF, they invest money in share market and give you profit, after cutting their commission.
Mutual funds could manage funds like Employee Provident Fund Organisation ( EPFO) – U K Sinha
registered as “Asset Management companies (AMC)” EPPO – see ageing

Difference

Alternative Investment fund (AIF)
An entity that collects money from people, and invests it.
unlike the regular mutual funds, they donot usually involve in the conventional debt-equity share market type investment.
And They’re not covered under SEBI’s regulations for mutual funds and collective investment schemes.
Such funds / entities are called Alternative Investment fund.

Category Note
1 These funds have positive spillover effects on the economy. E.g. venture capital funds, small and medium enterprises (SME) funds, social venture funds, and infrastructure funds
SEBI and Government might give them incentives or concessions.
2 Funds that don’t fall under category 1 or 3.
They can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day
SEBI/Government will not give any specific incentive or concession to them.
3 Funds that have negative externality.
They only work to get short-term benefits/speculation.
E.g Hedge funds.

Rajiv Gandhi Equity Savings Scheme (RGESS)
This was announced in Budget 2012.
Main purpose of this scheme: attract more (middle class and lower middle class) people to invest in securities market. (and divert them from investing money in gold, which increases current account deficit and creates more problems for Indian economy).

Conditions Your annual income must be below 12 lakh. (original figure was Rs.10 lakh, but Chindu raised it in budget 2013).
This must be your first investment in securities market. E.g. if you’ve been already investing purchased some IPOs, shares or invested in mutual funds, then you don’t get tax benefit in this scheme.
Lock in period of three years. (meaning you cannot take out your money before that).
You must purchase approved shares/mutual funds only.
Benefit? For investment upto Rs.50000, you get 50% deduction in income tax.
You can invest money in installments. No need to invest Rs.50000 in on go.
You don’t have to pay tax on dividends paid by the company.

Issues in RGESS To invest in any type of securities (debt or equity), you first need two things 1) PAN card and 2) DEMAT account. Most of the Indians don’t have either PAN card or DEMAT account.

Electronic Voting SEBI

A public limited company has shareholders. And the company needs to take votes of the shareholders before merger-acquisition, election of new board of directors etc.
Earlier this was done through postal ballot.
But in 2012, SEBI made rule: voting must be done through electronic means. (this reduces any mischief or foul play and brings more transparency).
At the moment, SEBI has made electronic voting is made Compulsory for the top 500 listed companies and more companies will be included soon.

SCOREs SEBI

SEBI complaints redress system It is a web portal, where you can file online-complaints to SEBI. Saradha Chit fund Scam – SEBI – ED enquiry

Financial Market

Present Situation

Positives

Negatives / what if not present

Govt has done so far

Solutions
Promote awareness about vulnerabilities in financial system

Conclusions
The capital markets reflect the expectations on policy measures to adress the adverse growth-inflation dynamics and saving investment baance

Current News

ODI ( Overseas Direct Investment ) eased as per FEMA act

Root Cause analysis of technical error in BSE trading
has made a last-ditch effort to avoid going to prison next week on insider trading charges

Credit Rating Standard and Poor

To assess the credit worthiness of a borrower to meet debt obligations is credit rating

Done by Moody’s S & P ,
CRISIL – Indian credit rating agency

Fundamental Rights in India – Part 2

Article 22 Protection Against Arrest and Detention

Punitive detention is to punish a person for an offence committed by him after trial an d conviction in a court .
Preventive detention , on the other hand, means detention of a person without trial and conviction by a court . Its purpose is not to punish a person for a past offence but to prevent him from committing an offence in the near future

Detention under ordinary law
The following rights on a person who is arrested or detained under an ordinary law
(1) Right to be informed of the grounds of arrest .
(ii) Right to consult and be defended by a legal practitioner.
(iii) Right to be produced before a magistrate within 24 hours, excluding the journey time.
(iv) Right to be released after 24 hours unless the magistrate authorises further detention .

protection to persons who are arrested or detained under a preventive detention law
(1) The detention of a person cannot exceed three months unless an advisory board reports sufficient cause for extended detention . The board is to consist of judges of a high court. – Real test for article 22(4) is whether delay is explained . Time taken in investigating may excuse delay

(i i ) The grounds of detention should be communicated to the detenu . However , the facts considered to be against the public interest need not be disclosed.

(iii ) The detenu should be afforded an opportunity to make a representation against the detention order

“Th e preven t ive det en t ion laws m ade by t h e Parl iam en t are:
(a) Preven t ive Det en t ion Act , 1950. Ex pi red in 1969.
(b) Main t en an ce of I n t ern al Secu ri t y Act (MI SA), 1971
Terrori st an d Di sru pt ive Act ivi t ies (Preven t ion ) Act (TADA), 1985.
Preven t ion of Terrori sm Act (POTA), 2002″
No democratic country in the world has made preventive detention as an integral part of the Constitution as has been done in India
Article 21 may also supplement the various requirements laid down in article 22
“On June 27 1975, the exercise of powers conferred by clause (1) of Article 359 of the Indian constitution were enforced, within which the right of any person including a foreigner to move to the court to enforce Article 14 (right to equality), Article 21 and Article 22 (prevention against detention in certain cases) of the Constitution and all the proceedings pending in any court concerned with the enforcement of the aforementioned articles will remain suspended for the period of Emergency.

What ensued was a string of illegal and hasty detentions without charge or trial, including those of the major leaders of the opposition party such as Moraji Desai, Atal Bihari Vajpayee, Jayprakash Narayan and L.K.Advani under the Maintenance of Internal Security Act, Preventive Detention Law (MISA). Consequently several writ petitions were filed all over the country. Records show that nine High Courts ruled in favour of the petitioners stating that even though Article 21 was not enforceable, a person could still demonstrate that their detention was not in compliance of the law under which they were detained, or that the action by the State was mala fide or that it was a case of mistaken identity. Highly perturbed the government decided to appeal against these decision in the Supreme Court, which became what is called the Additional District Manager of Jabalpur vs. Shiv Kant Shukla case or the Habeas Corpus case.”

Right against Exploitation

Art 23 Prohibition of traffic in human beings and forced labour
The expression ‘traffic in human beings’ include
1. selling and buying of men , women an d children like goods;
2. immoral traffic in women and children , including prostitution
3. devadasis
4. slavery
5. Begar and forced labour

The Bonded Labour System (Abolition ) Act , 1976; the Minimum Wages Act , 1948; the Contract Labour Act , 1970 were passed to prevent forced labour

Art 24 Prohibition of employment of children in factories, etc.

No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in any other hazardous employment

Child Labour (Prohibition and Regulation ) Act , 1986 and other similar acts prohibit the employment of children below certain age.
In 1996, the Supreme Court directed the est ablishment of Child L abour Rehabilitation Welfare Fund in which the offending employer should deposit a fine of ` 20,000 for each child employed by him . It also issued directions for the improvement of education , health and nutrition of children .
In 2006, the government banned the employment of children as domestic servants or workers in business establishments like hotels, dhabas, restaurants, shops, f actories, resorts, spas, tea-shops and so on . It warned that anyone employing children below 14 years of age would be liable for prosecution an d penal action .
Presently , children under the age of 14 are prohibited from employment in “hazardous occupations and processes” while their conditions of work in non -hazardous occupations and processes are merely regulated. The amendments include increasing the age of prohibition for employment of children and adolescents in hazardous occupations, such as mining , from 14 to 18.

Right to Freedom of Religion

Arts.25—30 25 Subject to public order, morality and health , all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion Tater PPP contract
26 Freedom to manage religious affairs. Udit affairs with muslim girl in Accenture
27 Freedom as to payment of taxes for promotion of any particular religion. Mandal hotel – amad said I wont give tax on bill as I have ate bakra to promote my religion on bakra eid Rajat bill leke gya mandal ke hotel mei
28 No religious instruction shall be provided in any educational institution wholly maintained out of State funds Raja giving religious intruction to amir nt to tlk to us

Cultural and Educational rights
C 29 “Any sectionhaving a distinct
language, script or culture of its own shall have the right
to conserve the same.”
“No citizen shall be denied admission into any
educational institution maintained by the State or
receiving aid out of State funds on grounds only of
religion, race, caste, language or any of them.”

30 “All minorities, whether based on religion or
language, shall have the right to establish and administer
educational institutions of their choice”
Right to constitutional remedy
32 habeas corpus, mandamus, prohibition, quo warrantoand certiorari B R Ambedkar Life & soul of constitution
certiorari

Secularism
“In the U.S.A. the separation between State and religion meansvthat neither the State nor religion can interfere in the affairs of one another.Unlike the strict separation between religion and the State in American secularism, in Indian secularism the State can intervene in religious affairs. In US , legislature cannot declare any religion as the official religion. Nor can they give preference to one religion. But India has declared that it has no religion , and it can prohibit one religion at the cost of other , and give prefernece to minority till public order is maintained ( Ex pagri) .It can intervene ,art 25 2 b .
In February 2004, France passed a law banning students from wearing any conspicuous religious or political signs or symbols such as the Islamic headscarf, the Jewish skullcap, or large Christian crosses.”
Right to freedom of religion Secularism Art 25 (1) “Subject to public order, morality and health, all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion.

What is the dividing line between the two is for the court to determine. “
“only a secular State can realise its objectives to ensure the following:
1. that one religious community does not dominate
another; art 26- majoirty cant dominate religiously , art 27 – cant dominate economically , 28 – cnt dominate in education by being forced in educational institutions
2. that some members do not dominate other members of
the same religious community; art 25 2 (b)
3. that the State does not enforce any particular religion
nor take away the religious freedom of individuals. art 25 1″ Ex : sikhs allowed to wear pagris in public as they can profess and practice their religion in public , as it does harm the public order
Christian missionaries are allowed to propagate their religion as long as there is no forceful conversions , bcoz forceful conversions breaks public order

Art 25 (2) a State can make any law regulating or restricting any economic, financial, political or other secular activity which may be associated with religious practice
“This means state can regulate any religious activity . This is an extension of Art 25 (1) . These restrictions or regulations should be primarily concerned
with the secular aspects of religious practice rather than with the essentials of religion”

Art 25 (2) b State can make any law providing for social welfare and reform or the throwing open of Hindu religious institutions of a public character to all classes and sections of Hindus ( hindus means hindus , sikhs and buddhists- Laxmikant)
“Constitution makers wanted to remove ills of hindu society and ensure that some members do not dominate other members of
the same religious community,( as in untouchability, hindu women rights) { but feared that incorporating muslims wud lead to intolerance} , so Uniform civil code was introduced based on this article , to remove ills of hindu society”

In keeping with this idea of religious freedom for all, India also adopted a strategy of separating the power of religion and the power of the State ( i.e state religion to none ). Secularism refers to this separation of religion from the State. So , In India,government spaces like law courts, police stations,government schools and offices are not supposed to display or promote any one religion.

Art 15 4 “for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes or the Scheduled
Tribes in so far as such special provisions relate to their admission to educational institutions – i.e allows state to make positive discrimination so to protect minority against majority ( not on the basis of religion but on basis of social and educational backwardness , give them reservation in education ( not on religion ) but bcoz muslims are socially backward they get reservations in education under OBC , minority .- This interpretation is my own”

Art 26 every religious denomination can establish and maintain , manage , own and acquire and administer religious institution
“Autonomy in promoting and managing religious institutions. Here , govt is not aiding to religious institutions , but allowing them to function on their own . But 28 3 says state can give aid to religious institution , but that religious institution cant give religious instruction , as he has taken govt money , and not 1 pint of communal blood shud touch govt money as govt has no religion. so if u want give relious instruction , then dont use govt funds 26 B means they can manage affairs thru religious institutions ( even hindus can ) but shud nt harm public order .
26 b is diff from 25 1 bcoz in 25 1( though bth alllows to profess religious affairs), u cn perform religious activity anywhere , but in 26 b , u r referring to activities in a religious institution , so its scope is less than 25 1 , though a part of it.”

Art 27 Freedom as to payment of taxes for promotion of any particular religion
“Article 27 is one of lhe essential consequences of secularism. A ‘tax’ is a compulsory exaction of money for public purpose. If the State exacts money through a taX whoSe proceed are assigned for the benefit of a particular religion. obviously the State favours, patronises and supports that
particular religion. Hence the prohibition against such taxes, The distinction between ‘tax’ and ‘fee’ has been adhered to in the context of this article also so that fees for secular regulation can be charged for defraying expenses of administrative regulation , and not for promotion or maintain religion. ”

A common burden (e.g. land revenue) imposed on all does not violate article 26(c) and article 26{d) or 27

Art 28 (1) “No religious instruction shall be provided in any educational institution wholly maintained out of State funds.
This line says state has no religion(ithough only in education , but I assume its for every field)( though it says only and no religion can be imparted in a state funded institution .So , durga pandals don’t/shouldnt occur in govt schools .( durga pandals happens bcoz constitution says state will not perform religious instruction , though individuals can perform it , till it is in public order”
Art 28 (2) Religious instruction can be given to an educational institution which is administered by the State but has been established under any endowment or trust i.e it is permitted
Art 28 (3) “No person attending any educational institution recognised by the State or receiving aid out of State funds shall be required to take part in any religious instruction that may be imparted in such institution . i.e voluary participation , jisko aana hai aa jao , nhi aana toh maa chudao . I wont force u
i.e A religious instruction/activity if imparted( though art 28 1 says , it shud not , but if imparted in any state funded education , an individual cant be compelled to attend . He shall go if he wishes . To stop forceful behaviour of one religious community to the other”

Indian Constitution guarantees Fundamental Rights that are based on these secular principles. Teaches religious tolerance
Article 28 of the Constitution prohibits imparting religious instruction in educational institutions which are run or aided by the State. This article has been grievously misrepresented so that spiritual education has been made out of bounds in educational institutions. Religious means the manifestation of the divinity inherent in man (Vivekananda). It could never have been intended by the founding fathers of the Constitution to exclude the manifestation of the divinity in students. On the contrary, manifestation of divinity and manifestation of perfection inherent in man constitute the first and foremost purpose of education. There cannot be a shred of doubt that this was not and could not be prohibited. What was prohibited was sectarian education, that is, promotion of philosophy of any particular sect or sects. Truly speaking, instruction for spiritual development is the basis and foundation of man-making education.

Khilafat question that gandhi mixed religion with politics can be given here .. Ie India declares that state has no religion , but take steps to promote public order , morality ,health..Similarly , gandhiji though secular , but to prevent /undo the injustice done by british to khalifa , took steps , that doesnt make him communal.

Cultural and Education Rights

Protection of interests of minorities
Art 29 (1) Any section of the citizens having a distinct language, script or culture of its own shall have the right to conserve the same.
Although, commonly article 29( I) is assumed to relate to minorities, its scope is not necessarily confined, as it is available to “any section of citizens resident in the territory of India”. This may well include the majority

Art 29 (2) Further , no citizen shall be denied admission into any educational institution maintained by the State or receiving aid out of State funds on grounds only of religion , race, caste, or language.
It guarantees the right of a citizen as an individual irrespective of the community to which he belongs.
The Supreme Court also held that the right to conserve the language includes the right to agitate for the protection of the language. Hence, the political speeches or promises made for the conservation of the language of a section of the citizens does not amount to corrupt practice under the Representation of the People Act , 1951.

Right of minorities to establish and administer educational institutions.

Art 30 All minorities, shall have the right to establish and administer educational institutions of their choice.

Article 30 is confined to minorities-whether based on religion or Janguage-and unlike article 29(1), it cannut be availed of by any ‘section of cnizens’

Art 32 Right to Constitutional Remedy Heart and soul of Constitution – Ambedkar Art 139 + 226 See diff.. Btn SC and HC writ

The Constitution provides that the President can suspend the right to move any court for the enforcement of the fundamental rights during a national emergency (Article 359).

Writs habeas corpus means ‘to have the body of – see Rowlatt act
mandamus “a command issued by the court to a public official asking him to perform his official duties that he has failed or refused t o perform .
Supreme Court has issued directions to check the evil of child prostitution . Directions can be issued to control pollution . Supreme Court issued directions for revival of a company (viable units) having regard to the fact that living had been denied to 10,000 workm for five years; “
Prohibition issued by a higher court to a lower court or tribunal to prevent the latter from exceeding its jurisdiction
Certiorari “Issued by a higher court to a lower court or tribunal either to transfer a case pending with the latter to itself or to squash the order of the latter in a case.
Certiorari may be issued where the law. under which the decision was given is void , the decision itself violates a fundamental right , the decision is against natural justice (“fair play in action” ),”
Quo- warranto Issued by the court to enquire in to the legality of claim of a person to a public office. Hence, it prevents illegal usurpation of public office by a person .

Article 32 cannot be invoked simply t o determine t h e constitutionality of an executive order or a legislation unless it directly in fringes any of the fundamental rights
The jurisdiction of the Supreme Court is original but not exclusive. It is concurrent with the jurisdiction of the high court under Article 226.

“In all economic cases. judicial inquiry is confined to the question whether the findings of fact are resonably based on evidence, and whether such findings are consistent with the laws of the land;
Judicial review under articles 32 and 226 is ~ basic feature of the Constitution beyond the pale of amendability”

Fundamental Rights – India – Part 1

History described as the Magna Carta of India

Derived from US constitution – Bill of rights See – American war on Independence

Aim:
Meant for promoting Political Democracy while DPSP are for socio-economic rights

They are negative obligations on state – i.e impose restriction on the actions of the state

They are ‘fundamental ’ also in the sense th at they are most essential for the all -round development (material , intellectual , moral and spiritual ) of the individual s.

They are not absolute but qualified. Th e state can impose reasonable restrictions on them .

Article 14 Right to Equality Equality before Law and Equal protection of Laws

Equality before Law – It says (a) absence of any special privileges in favour of any person , (b ) the equal subjection of all persons to the ordinary law of the land administered by ordinary law court s, and (c) no person is above the law.

Equal protection of Laws – (a) the equality of treatment under equal circumstances, both in the privileges conferred an d liabilities imposed by the laws, (b ) the similar appl icat ion of the same laws to all persons who are similarly situated, and (c) the lik e should be treated alik e without any discrimination .

Thus , former is a -ve concept , while latter is a +ve concept . SC perm i t s reason able classi f icat ion of person s, object s an d t ran sact ion s by t h e law. Bu t t h e classi f icat ion sh ou ld n ot be arbi t rary , art i f icial or evasive

Rule of Law i.e equality before law based on concept of Rule of law , i.e every decision shud be based on the law established , and not on arbitrariness ( as per conscience , as allowed in US constitution )

Notes :
Preamble speaks of equality of status and oppurtunity
Indians wanted same rights and previldges as njoyed by british which led to formaion of INC in 1985
“Officers of govt are discriminated against general ciizens, as a suit against the Governmentifr against a Government officer [or an act purponing to be done by the laner in his official capacity a two month notice is ordinarily requim.:l under section 80 oftbe Code of Civil Procedurc, 1908. Similarly. where a public servant
who is not removable from his office except by or with sanction of the Government. is accused of an offence committed by him while acting or purponing to act in the discharge of his official duties, criminal couns are barred from talc.ing cognizance of such an offence without previous sanction of the Central Government or the State Governrncnt.”
In determining the validity of such provisions, couns in India have followed the general principle that equal protection of the laws means the right to equal treatment in similar circumsla”us, Couns have upheld legislation containing apparently discriminatory provisions where the discrimination is based on a reasonable basis

Article 15 Prohibition against Discrimination

15 (1) The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them

15 (3) Nothing in this article shall prevent the State from making any special provision for women and children
15 (4) Nothing shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes.

Notes: State can discriminate on grounds other than religion, race, sex, place of birth or any of them .Discrimination is valid on any other rational ground
State to make special provisions for women and children . provisions in the criminal law, in favour of womcn, or in the procedural law discriminiting in favour of women, have heen upheld.
State to make any special provision for the fo!lowing :-(a) Socially and educationally backward classes of citizens; (b) Scheduled castes; and (c) Scheduled tribes.
“reservation of an excessively high percentage of seats in technical institutions for each classes would be void on the basis that the general right of equality guaranteed by anicle 14, would override the special provision under article 15(4) and discriminatory provisions of such a nature may be struck down as
unreasonable in the circumstances . ( reasonable is imp criteria to determine constitutional validity of ay fundamental right )”
In article 46, (a directive principle of State policy) it is the obligation of the state to promote with special care the educational nnd economic interests of “the weaker sections of the people”, and in particular. “of the Sheduled Castes ‘and the Sche
By article 335, it is provided that the claim of the members of the Scheduled Castes and the Scheduled Tribes shan be taken into considertltion consistently with the maintenance of efficiency in the adminiuration, in the making of appointments to services and posts in connection with the affairs of the Union or of a State. 8U1 this article does not mention backward classes. Virtually, the Supreme Court has held the element of efficiency of administration as a limitation on articte 15 (4)

Current News

Congress NCP 16 % quota for marathas and 5 % quota for muslims in education and govt jobs goes against SC ruling that reservations coud not exceed 50 % . The total reservation will be 73 % , from existing 52 % ., though in Tamil nadu its 69 % . AP high court quashed the AP govt move to provide 4 % quota for muslims .Centre had filed an application for 4.5 % quota for muslims within OBC quota in education and employment.Govt approves ordinance for Maratha, Muslim reservation –
The historic decision to break with a 900-year-old tradition and allow women and non-Brahmins as priests in the Vitthal-Rukmini temple in Pandharpur

Article 16 Equality of opportunity in matters of public employment

16 (1) There shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State
16 (4) Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State

Notes : right to equality or opportunity and employment in public orlices
But as regards Ihe backward classes lhemselves, Ihey view it as a corrective remedy the imbalance which has resulted from historical causes. i.e dominance of brahmins and exclusion of backward castes in public jobs
As a result, considerable controversy and uncertainty exists as to the extent to which the quantum of reservation may override lhe general right to eqUality. Broadly ~speaking, it may be stated that reservation excess of 50% may be, regarded as discriminatory.
On the question whether article 16(4) is subject to any safeguard,it is relevant to point out that courts have insisted thai it must be read with article 335 which directs thai in taking inio consideration the -claims of members of the Scheduled Castes and Scheduled Tribes, the State should bear in mind thai the claim should be consistenl with the maintenance of efficiency of administration. This incidentally calls upon the judiiciary to read together articles 16, 46 and 335
Article 14 guarantees to all persons equality before the law. Articles 15(1) and 16(2) protect citizens against discrimination .

Article 17 Abolition of Untouchability

Notes :
Untouchablity refers to the social disabilities imposed on certain classes of persons by reason of their birth in certain castes
The act declares the following acts as offences:
(a) preventing any person from entering any place of public worship or from worshipping therein ;
(b) justifying untouchability on traditional , religious, philosophical or other grounds;
(c) denyin g access to any shop, hotel or places of public entertainment ;
(d) insulting a person belonging to scheduled caste on the ground of untouchability ;
(e) refusing to admit persons in hospitals, educational institutions or hostel s established for public benefit ;
(f ) preaching untouchability directly or indirectly ; an d
(g ) refusing to sell goods or render services to any person .

The Supreme Court held that the right under Article 17 is available against private individuals and it is the constitutional obligation of the State to take necessary action to ensure that this right is not violated.
“This expression refers to the social disabilities imposed on certain classes of persons by reason of their birth in certain castes and does not cover social boycott
based on conduct”

Article 18 Abolition of Titles

Article18astitlesareagainsttheprincipleofequalstatusofall
In1996,theSupremeCourtupheldtheconstitutionalvalidityoftheNationalAwards—BharatRatna,PadmaVibhushan,PadmaBhushanandPadmaSri.Itruledthattheseawardsdonotamountto‘titles’withinthemeaningofArticle18thatprohibitsonlyhereditarytitlesofnobility.Therefore,theyarenotviolativeofArticle18asthetheoryofequalitydoesnotmandatethatmeritshouldnotberecognised

Article 19 Right to Freedom

19.(1) All citizens shall have the right—
(a) to freedom of speech and expression;
(b) to assemble peaceably and without arms;
(c) to form associations or unions;
(d) to move freely throughout the territory of India;
(e) to reside and settle in any part of the territory of India
(g) to practise any profession, or to carry on any occupation, trade or business.

19 (2) Nothing shall prevent the State from making any law, in so far as such law imposes reasonable restrictions on the exercise of the right conferred by the said sub-clause in the interests of [the sovereignty and integrity of India,] the security of the State, friendly relations with foreign States, public order, decency or morality, or in relation to contempt of court, defamation or incitement to an offence.]

Notes: Some controversy existed in the past as to whether the operation of this article is ruled out where articles 21 and 22 apply; but the current trend is nolto regard lhese articles as mutually exclusive
“A person whose freedom of movement has/been taken away by imprisonment or detention does not thereby lose his freedom of expression, so long as it is
exercised within the valid conditions reluting to imprisonment or detention. Hence a detenee cannot be prevented from sending outside the jail for publication, matter which contains nothing prejudicial on the grounds or which he had been detained. ”
An unincorponued association cannot also be citizen and cannot claim these rights; A-company is not a “citizen” and cannot invoke article 19(1)(g).
“Criteria of Validity of law – The considerations which generally prevail in judging the validity of a law in the context of this article are:
(a) Whether the law imposes a restriction on the freedom in question;
(b) Whether the restrictions have been imposed by law;
(e) Whether the restrictions are reasonable; and
(d) Whether the restriction besides being reasonable, is imposed for one of the specified
purposes relevant to the freedom in question as enumerated in the applicable clause out
of clauses (2) to (6) of the article.
Each of these conditions must be satisfied. ”
The test of reasonableness – The broad Criteria is whether the law strikes a proper balance between social control on the one hand and the rights of the individual on the other hand

Freedom of speech and expression;

The Supreme Court held that the freedom of speech and expression includes the following:
(a)Right to propagate one’s views as well as views of others.
(b)Freedom of the press. Freedom of the press is not expressly mentioned in article 19 but has been held to now from the general freedom of speech and expression guaranteed to all citizens . As judicially construed , this freedom noW includes not merely the freedom to write and publish what the writer considers proper (subject to reasonable restrictions imposed by law for specific purpose). but also the freedom to carry on the business so that infonnation may be disseminated and excessive and prohibitive burden restricting circulation may be avoided. The press is not immune from the general law of liability for defamation (Civil and criminal)
(c)Freedom of commercial advertisements. Government advertisements should be given to ncwspapcn; under a definite policy or uniform guidelines
(d)Right against tappingof telephonic conversation. See freedom of Privacy below news
(e)Right to telecast , that is , government has no monopoly on electronic media.
(f)Right against bundh called by a political party or organisation.
(g)Right to know about government activities. “A citizen has a right to know about the a.;:tivilies of the State. the instrumentalities. the
departmcnt~ and the agencies of he State. The privilege of secrecy which existed in old times,
(namely) that the Stilte is not bound to disclose the facts to the citizens or the State cannot be
compelled by the citizens to disclose the facts, does not survive now to a great eltent. Under article
19 there exists the right of freedom of speech. Freedom of speech is based on the foundation of
freedom right 10 know. The Sute can impose and should impose reasonable re~rictions in the rights where it affects the national security or any Olher matter affecting the nation’s integrity. But lhe
right is limited and particularly in the matter of unitation and other allied malters, every citizen
has a right 10 know how the State is functioning and Wbftbe StalC is withholding such information
in such matters”
(h)Freedom of silence.
(i)Right against imposition of pre-censorship on a newspaper.
(j)Right to demonstration or picketing but not right to strike.
The State can impose reasonable restrictions on the exercise of the freedom of speech and expression on the grounds of sovereignty and integrity of India, security of the state, friendly relations with foreign states,public order,decency or morality,contemptofcourt,defamation,and incitement to an offence.

Freedom of Assembly
Every citizen has the right to assemble peaceably and without arms. It includes the right to hold public meetings ,demonstrations and take out processions.
This freedom can be exercised only on public land and the assembly must be peaceful and unarmed. This provision does notprotect violent,disorderly ,riotous assemblies, or one that causes breach of public peace or one that involve sarms.
This right does not include the right to strike

Under Section 144 of Criminal Procedure Code (1973), a magistrate can restrain an assembly, meeting or procession if there is a risk of obstruction, annoyance or danger to human life, health or safety or a disturbance of the public tranquillity or a riot or any affray.
The State can impose reasonable restrictions on the exercise of right of assembly on two grounds namely, sovereignty and integrity of India and public order including the maintenance of traffic in the area concerned
But the restrictions cannot attain the SUtus of absolute prohibition at least in normal times.

Freedom of Association

It includes the right to form political parties , companies , partnership firms , societies , clubs, organisations, trade unions or any body of persons.It not onl yincludes the right to start an association or union but also to continue with the association or union as such.Further, it covers the negative right of not to form or join an association or union.
Reasonable restrictions can be imposed on the exercise of this right by the State on the grounds of sovereignty and integrity of India, public order and morality.
The Supreme Court held that the trade unions have no guaranteed right to effective bargainingor right to strike or right to declare a lock-out.The right to strike can be controlled by an appropriate industrial law.

Freedom of Movement

This right underline the idea that India is one unit so far as the citizens are concerned. Thus, the purpose is to promote national feeling and not parochialism .
It is is in addition to the right to personal libetty guaranteed under article 21.
While judicial decisions confine this article to physical movement. the intangible aspect of freedom may receive protection under anicle 21. For example. domiciliary visits by the police at night disturbing a person’s sleep infringe personal liberty under article 21 and may not be constitutionally valid, except in the case of surveillance needed (or the legitimate purpose of prevention of crime.
19 1 d and anicle 21 has led to the proposition the residents of hilly areas have a right to be provided access to the roads, which access is necessary for Ihe proper exercise of the right of life.
The grounds of imposing reasonable restrictions on this freedom are two, namely , the interests of general public and the protection of interests of any scheduled tribe. The entry of outsiders in tribal areas is restricted to protect t he distinctive cu lture, language, customs and manners of scheduled tribes and to safeguard their traditional vocation and properties against ex ploitation .
Th e Su prem e Cou rt h eld t h at t h e f reedom of m ovem en t of prost i t u t es can be rest rict ed on t h e g rou n d of pu bl ic h eal t h an d in t h e in t erest of pu bl ic m oral s. Th e Bom bay Hig h Cou rt val idat ed t h e rest rict ion s on t h e m ovem en t of person s af f ect ed by AI DS.
Th e f reedom of m ovem en t h as two dim en sion s, viz , in t ern al (rig h t t o m ove in side t h e cou n t ry ) an d ex t ern al (rig h t t o m ove ou t of t h e cou n t ry an d rig h t t o com e back t o t h e cou n t ry ). Art icle 19 prot ect s on ly t h e f i rst dim en sion . Th e secon d dim en sion i s deal t by Art icle 21 (rig h t t o l i f e an d personal libert y ).

Freedom of Residence

This right is intended to remove internal barriers within the country or between any of its parts. This promotes nationalism and avoids narrow mindedness.
The State can impose reasonable restrictions on the exercise of this right on two grounds, namely , the interest of general public and the protection of interests of any scheduled tribes .In many parts of the country , the tribals have been permitt ed t o regulate their property rights in accordance with their customary rules and laws.
The Supreme Court held that certain areas can be banned for certain kinds of persons lik e prostitutes and habitual offenders.
” From t h e above, i t i s clear t h at t h e rig h t t o residen ce an d t h e rig h t t o m ovem en t are overlappin g t o
som e ex t en t . Bot h are com plem en t ary t o each ot h er.”
Denial of benefits to migrating members of Scheduled Castes and Scheduled Tribes, does not violate article 19

Freedom of Profession
State can impose reasonable restrictions on the exercise of this right in the interest of the general public.
This right doesnot include the right to carry on a profession or business or trade or occupation that is immoral (trafficking in wom en or children ) or dangerous (harmful drugs or explosives, etc,). The State can absolutely prohibit these or regulate them through licencing .
no objection can be made when the Stat e carries on a trade, business, industry or service either as a monopoly (complet e or partial ) to the exclusion of citizens (all or some only ) or in competition with any citizen . The State is not required to justify its monopoly .
Moreover, there is no right to carry on a business at any place or at any time restrictions may be imposed in that regard.
Nor is there a right that at a public auction or in tenders invited by the Government, the highest bid or the lowest tender must be accepted. But by virtue of article 14, it is now established thai rejection of the highest bid or the lowest tender by Government must not be arbitrary
A Minister may be restrained from contracting (because of his position);
“In the context of licences and permits required for carrying on a business or trade, the grant of such licence cannot depend upon the absolute discretion of an administrative authoriry. They policy must be laid down on which the discretion is to be exercised. Further, in general, the discretion must be exercised on relevant consideration. In short, if the law imposing licensing does not set out the consideration. the law would be void. If the considerations are set out in the law, but are departed from by the: competentl authority while administering the: law then the order of the
competent authority would be void. even though the law itself may be valid. Generally, an existing licence cannot be revoked without giving the licensee an opportunity of hearing. ”

Protection in respect of conviction for offences

Art 20 (1) No ex-post-facto law person shall be convicted only violation of a law in force at the time of the commission of the Act
However , this limitation is imposed only on criminal laws an d not on civil laws or tax laws. In other words, a civil liability or a tax can be imposed retrospectively

20 (2) No double jeopardy No person shall be prosecuted and punished for the same offence more than once
it is not available in proceedings before departmental or administrative authorities as they are not of judicial nature . ( i.e the department of any organization can also punish an individual say by suspending him in addition to the court punishment) free if served more than 14 years in jail asking president to invoke art 72

20 (3) No self-incrimination No person accused of any offence shall be compelled to be a witness against himself
But a person can be compelled to give thumb impression, body specimen or production of material objects
Ex – N D Tiwari case , compelled to give DNA samples

Art 21 Right to life and personal liberty Procedure established by law (imp.) In US , judicairy can take decisions as per morality , but in India , as per law Article 21 of the Indian constitution guarantees the right to life and liberty to each and every citizen of the nation. Right to move to the court to enforce this article was suspended under Article 359 of the constitution when ‘internal’ emergency was imposed (1975-77).  The logical question that followed whether the writ of Habeas Corpus was enforceable in such a situation? The landmark Supreme Court case or the Habeas Corpus case attempted to answer this question, and was the reason for the 44th Constitutional Amendment in 1978. This amendment, passed unanimously, ensure that Article 21 cannot be suspended even during an Emergency.

No person shall be deprived of his life or personal liberty except according to procedure established by law

‘rig h t t o l i f e’ as em bodied in Art icle 21 i s n ot m erely con f in ed t o an im al ex i st en ce or su rvival bu t i t in clu des wi t h in i t s am bi t t h e rig h t t o l ive wi t h h u m an dig n i t y an d al l t h ose aspect s of l i f e wh ich g o t o m ak e a m an ’ s l i f e m ean in g f u l , com plet e an d wort h l ivin g .
SC h as declared t h e f ol lowin g rig h t s as part of Art icle 21:
(a) Right to live with human dignity.
(b)Right to decent environment including pollution free water and air and protection against hazardous industries. Under articles 21 and 32, the court has directed that the Gamma Chambers housed in Jawaharlal Nehru University, Delhi be sent to Bhabba Atomic Research Centre. Bombay for recharging
(c)Right to livelihood. MNERGA implemented
(d)Right to privacy. Tapping telephonic conversations
(e)Right to shelter.
(f)Right to health. Ban drugs and products harmful to health .
(g)Rightto free education upto 14 years of age. Art 21 A
(h)Right to free legal aid. DPSP – 39A
(i)Right against solitary confinement.
(j)Right to speedy trial. Pendency of cases in judiciary
(k)Rightagainst handcuffing.
(l)Right against inhuman treatment.
(m)Right against delayed execution.
(n)Right to travel abroad.
(o)Right against bonded labour.
(p)Right against custodial harassment. Increasing cases of Custodial deaths in police stations
(q)Right to emergency medical aid. Obstruction of movement along highway by the police is constitutional, provided the obstruction is reasonable and in theLinterest of public order
(r)Right to timely medical treatment in government hospital.
(s)Right not to be driven out of a state.
(t)Right to fair trial.
(u)Right of prisoner to have necessities of life.
(v)Right of women to be treated with decency and dignity.
(w)Right against public hanging. Women’s rights
(x)Right to hearing.
(y)Right to information.
(z)Right to reputation. Defamation case against Arvind Kejriwal

Article 21 A Right to Education Art 45 Art 51 A j

State shall provide free an d compulsory education to all children of the age of six to fourteen years
Thereafter , his right to education is subject to the limits of economic capacity and development of the state.
In pursuance of Article 21A, the Parliament enacted the Right of Children to Free and Compulsory Education (RTE) Act , 2009
This legislation is anchored in the belief that the values of equality , social justice and democracy and the creation of a just and humane society can be achieved only through provision of inclusive elementary education to all.

Judiciary in India

Qualification 5 year as high court judge Tenure upto 65 years
10 years as high court advocate resign
Distinguished jurist Removed by presi on Parlia recommendatn

Removal of Judges

A judge can be removed from his office by an order of President .
President can issue removal order after an adress by parliament has been presented to him in same session for removal , which has been supported by special majority of each house .
Parliament can bring an adress after following an Enquiry as per Judges Enquiry Act on grounds of Proced misbehaviour ( as A K ganguly has misbehaved with law intern ) or ( not behaving as per constitution by not maintaining the oath of secrecy and integrity ) (A committee of three judges of the Supreme Court had indicted Justice Ganguly for “unwelcome behaviour” and “conduct of sexual nature” towards a woman law intern in a five-star hotel room in Delhi in December last year, prompting demands that action under criminal law should be initiated against him. .The Union Cabinet on Thursday gave its nod for making a Presidential Reference (143 )to the Supreme Court for removal of Justice A.K. Ganguly as Chairperson of the West Bengal Human Rights Commission .The suggestion is that the President will have to make a reference to the Supreme Court, which will then order an inquiry.. The process will be set in motion once the Reference under Article 143 is sent to the court for its advisory opinion. Under Article 143, the President may refer a dispute of any kind to the Supreme Court for its opinion and it may, after a hearing as it thinks fit, report to the President. Matlab , pehle supreme court ne apna inquiry kiya , found him guilty , requested parliament to take action , Parliament got the removal motion signed by more than 100 members , speaker meira kumar admitted it as she was a woman , President wud have invoked 143 and asked SC opinion , and if given formed a 3 member committee and then if found guilty , then house wud have voted. then president wud have removed him.
Incapacity ( if he gives illogical decision )

Removal Process A removal motion signed by min. 100 members /50 in LS/RS
Speaker/Chairman may admit/refuse “In Justice Sumitra Sen’s case of calcutta HC , significantly, after the Rajya Sabha passed the motion to remove him from office, the Lok Sabha did not proceed with a debate only because in the meanwhile Justice Sen had tendered his resignation. The impeachment process was not taken further in recognition of the fact that there was no question of removal of a judge who had already resigned. There are precedents available in other countries where the proceedings initiated against sitting judges abated after they submitted their resignations.
In Ramaswamy case , impeachement motion defeaeted in Lok sabha as congress abstained from voting”
If admitted , speaker/chairman constitute a 3 member committee to inv )estigate ( CJ/judge of SC , CJ of high court , distinguished jurist
If found guilt ,house can take up the consideration of motion
If passed by special majority , an adress presented to President for removal
Finaally , Presi removes the judge

Independence of Supreme court Art 50 DPSP Seperation of executive from Judiciary

Appointment Joining
Salary candidates luring packages
Service condition candidates luring packages
Staff candidates luring packages
conduct koi mai ka lal kuch nhi bol sakta
contempt koi mai ka lal kuch nhi bol sakta warna contempt kar do
Retirement Budhapa padne pe No practise post retirement
124 7 budhapa ke baad

Jurisdiction

131 Original Centre state relations
139 (32) Writ JAOO – RAW
132 Appellate
143 Advisory
129 A court of Record
145 Judicial Review
Other

Original Jurisdiction Art 131 Exclusive original jurisdiction – no other court can decide such disputes , hear appeal in first instance , not by way of appeal

SC decides btn between the Government of India and one or more States
between the Government of India and any State or States on one side and one or more other States on the other
between two or more States

Note : Inter water disputes excluded under Art 131
Article 131 is about Centre-State or inter-State disputes in general, whereas Article 262 is specifically about inter-State river water disputes. It is not clear to this writer how a general provision can be invoked in a case covered by a specific provision. Besides, clause (2) of Article 262 that enables the barring of the jurisdiction of the courts begins with the words “Notwithstanding anything in this Constitution”: that does not seem to leave recourse to Article 131 open. However, the question whether Article 131 provides a route for an appeal to the Supreme Court against an ISWD Tribunal’s Order has not come up for consideration.
Art 262 Article 136 is the actual route taken by the three petitioner States in ISWD case. The wording of the Article, and in particular the reference to “any Court or tribunal in the territory of India,” seems to bring the ISWD Tribunals within the purview of the Article, but we cannot forget the specific bar in the ISWD Act in pursuance of Article 262;
CWDT to take up the pending applications filed by the “party States” and the Central Government under Section 5(3) of the Inter-State River Water Disputes Act, 1956 (ISRWD).
Writ Jurisdiction Art 139 (see Art 32 ) Not Exclusive ( High courts can also issue)(in original , it was exclusive )

SC can issue writs for enforcement of Fundamental Rights including Habeas corpus
Mandamus
Prohibition
quo-warrento
certiorari

Note : HC can issue writs for FRs violation and other purpose , while SC only for FRs violation

Appellate Jurisdiction Art 132 Highest court of Appeal

Appeals relating to Constitutional matters If high court certifies that the case involves substantial question of law
Civil matters
Criminal matters
Special leave SC can grant special leave to appeal from any judgement passed by any court

Advisory Jurisdiction Art 143 ( remem by heart )

President can seek opinion of SC

Court of Record Art 129

These records are of evidentiary value and cannot be questioned when produced before any court
Punish for contempt of non execution of its recorded judgements allows for independence of judiciary – check and balance

Judicial Review Art 145 Harsh asks debanjan to review his book 45

It is the power of SC to examine the constitutionality of legislative acts and executive orders of both central and state govt Check and balaance
If found ultra-vives (violative of constitution ) , it can declare it unconstitutional and invalid.

To uphold supremacy of constitution
To maintain federal equilibrium
Protect FRs