24 January 2026

• Supreme Court of India sought status reports from Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) on alleged bank frauds involving Anil Dhirubhai Ambani Group (ADAG).
• Fresh notices issued to Anil Ambani as last opportunity in the interest of justice.
• Petition filed by former Secretary E.A.S. Sarma seeking court-monitored investigation.
• Forensic audit found siphoning of funds → State Bank of India registered FIR as per RBI directions.
• Allegation of five-year delay (2020–2025) in registering FIR despite early detection by banks.

Key Points

• Forensic audit revealed diversion/siphoning of funds.
• FIR registered under RBI Master Directions on Frauds.
• No pending challenge to SBI’s fraud classification.
• Delayed challenge to forensic audit by other banks pending before Bombay High Court.
• Issue of institutional inertia and possible complicity raised.

Static Linkages

• RBI’s role as banking regulator.
• Fraud classification under RBI Master Directions on Frauds (2016, updated).
• Criminal investigation via FIR → CBI/ED.
• Judicial oversight under Article 32 / Article 142.
• Corporate governance and fiduciary duty of banks.

Critical Analysis

• Issues
  • Delay in fraud reporting weakens deterrence.
  • Regulatory and supervisory gaps in banking sector.
  • Focus on borrower, limited scrutiny of bank officials.
  • Multiplicity of proceedings causes investigation lag.
• Significance
  • Reinforces judicial role in financial accountability.
  • Highlights systemic issues in NPA and fraud management.
  • Sets precedent for court-monitored probes in economic offences.

Way Forward

• Statutory timelines for fraud reporting by banks.
• Fix accountability of bank officials under service rules.
• Strengthen Early Warning Signals (EWS) mandated by RBI.
• Better coordination among RBI–CBI–ED.
• Parliamentary oversight on large banking frauds.

DELIMITATION 2027: POWER SHIFT

KEY HIGHLIGHTS

• Constitutional freeze on inter-State redistribution of Lok Sabha seats ends after first Census post-2026 (Census 2027).
• Present Lok Sabha seat allocation based on 1971 Census, despite population nearly tripling.
• Next Delimitation Commission expected to:
  • Reallocate seats among States (first time since 1976)
  • Redraw all parliamentary constituencies  
  • Enable 33% women’s reservation as per 106th Constitutional Amendment.
•  Raises concerns related to federal balance, political equity, demographic divergence.

Key Points

• Constitutional Provisions
  • Article 82: Readjustment of Lok Sabha seats after each Census.
  • Article 170: Readjustment of State Assembly constituencies.
• Constitutional Amendments
  •  42nd Amendment Act, 1976: Freeze based on 1971 Census.
  • 84th Amendment Act, 2001: Extended freeze till Census after 2026.
  • 106th Amendment Act, 2023: Women’s reservation contingent on delimitation.
• Delimitation Commission
  •  Statutory body; orders have force of law.  
  • Decisions not subject to judicial review.
• Demographic Reality
  • Southern & western States: Below-replacement fertility.
  • Northern States: Higher fertility and population growth.
•  Projected Outcomes
  • Population-only formula increases weight of high-growth States.
  • Risk of concentration of political power in a few States.
•  Timeline Constraint
  • Census 2027 data likely by 2028.
  •  Delimitation may conclude only by 2031–32.
  • Women’s reservation likely post-2034 elections.

Static Linkages

•  Principle of “One Person, One Vote, One Value”
• Federalism as a basic feature of the Constitution  Demographic Transition Theory
• Bicameral Legislature and federal balancing role  Equality under Article 14

Critical Analysis

• Advantages
  • Updates representation to current population realities.
  • Upholds democratic principle of equal representation.
  • Enables implementation of women’s reservation.  
  • Addresses long-pending constitutional obligation.
• Concerns
  • Penalises States that achieved population stabilisation.
  • Weakens incentives for human development investments.
  • Risk of regional imbalance and dominance.
  • Alters coalition politics and bargaining power of smaller States.
  • Potential legal challenge under Article 14.
• Federal Implications
  • Shift from cooperative to competitive federalism.
  • Erosion of political voice of low-fertility States.
  • Rajya Sabha unable to fully counterbalance Lok Sabha dominance.

Way Forward

• Adopt weighted formula combining population with governance indicators.
• Expand Lok Sabha strength ensuring no State loses existing seats.
• Strengthen Rajya Sabha’s federal role through structural reforms.
• Implement phased delimitation across two election cycles.
• Ensure expert-driven, transparent Delimitation Commission.
• Initiate political consensus before Census data release.

INDIA -EU FIT IN DIVIDED WORLD

• High-level visit of Ursula von der Leyen and António Luís Santos da Costa to India in January 2026.
• EU leaders invited as Chief Guests at India’s 77th Republic Day.
• 16th India–EU Summit scheduled during the visit.
• India–EU Free Trade Agreement (FTA) negotiations in advanced stage (launched in 2007, revived in 2022).
• Engagement takes place amid global trade tensions, energy security concerns, and shifts towards strategic autonomy.

Key Points

• Trade & Economy
  • India–EU bilateral trade crossed €120 billion (2023), making the EU India’s largest trading partner (European Commission data).
  • The proposed FTA covers goods, services, investment protection, digital trade, and sustainable development.
•  Carbon Border Adjustment Mechanism (CBAM)
  • EU’s CBAM proposes carbon-linked levies on imports of steel, aluminium, cement, fertilizers, electricity and hydrogen.
  • Indian estimates (Ministry of Commerce) indicate 20–35% effective cost escalation for carbon-intensive exports.
• Defence & Security
• Proposal for an India–EU Security and Defence Partnership, similar to EU’s arrangements with Japan and South Korea.
• Focus on defence co-production, maritime security, and Indo-Pacific coordination.

Strategic Significance

• Both sides seek to reduce over- dependence on Russia (energy), China (manufacturing), and the U.S. (security).
• Emphasis on rules-based multipolarity, not alliance-centric geopolitics.

Static Linkages

•  Strategic autonomy as articulated in India’s National Security Doctrine and EU’s Strategic Compass (2022).
• Trade agreements under Article 73 of the Indian Constitution and EU’s Common Commercial Policy.
• Climate governance principles under UNFCCC: Common But Differentiated Responsibilities (CBDR).
• Defence indigenisation under ‘Make in India’ and Defence Acquisition Procedure (DAP), 2020.
• Indo-Pacific cooperation aligned with India’s SAGAR doctrine.

Critical Analysis

• Opportunities
  • Market access for Indian exports.
  • Technology transfer and defence co- production.
  • Strategic diversification of partnerships.
  • Strengthening India’s role in global governance.
• Challenges
  • CBAM as a potential non-tariff barrier.
  • Regulatory and standards-related constraints.
  • Defence cooperation limited by institutional fragmentation.
  • Implementation gaps post-agreement.

Way Forward

• Address CBAM through climate finance and technology transfer mechanisms.
• Phase-wise implementation of FTA commitments.
• Strengthen institutional mechanisms for defence collaboration.
• Enhance coordination in Indo-Pacific security frameworks.
• Align trade liberalisation with domestic manufacturing goals.

• Ethnic violence in Manipur ongoing since May 3, 2023.
• Recent killing of a Meitei man in Kuki-Zo dominated Churachandpur escalated tensions.
• Protest demands transfer of investigation to National Investigation Agency.
• Manipur under President’s Rule since February 2025.
• Deepening trust deficit between Hill tribes and Valley communities.

Key Points

• Manipur became a State in 1972.
• Home to 33 Scheduled Tribes; major groups include Nagas and Kuki-Zo.
• Meiteis are non-tribal, concentrated in Imphal Valley.
• 2023 violence triggered after Manipur High Court direction on examining ST status for Meiteis.
• Tribal opposition based on:  
  • Fear of land alienation
  • Dilution of reservation benefits  
  • Political marginalisation
• Over 60,000 internally displaced (government relief data).
• Use of internet shutdowns, central armed forces, AFSPA for control.
• Spread of violence amplified through encrypted social media platforms.

Static Linkages

• Article 342: Procedure for Scheduled Tribe inclusion
• Article 356: President’s Rule
• Federal structure and Centre–State relations  
• Tribal land protection mechanisms
• Internal security: ethnic conflict
• Role of civil society in peace processes

Critical Analysis

• Issues
  • Governance failure despite prolonged central intervention
  • Politicisation of identity-based demands  
  • Weak institutional communication with stakeholders
  • Humanitarian crisis: displacement, livelihood loss
  • Erosion of social capital and coexistence
• Constitutional Concerns
  • Judicial directions vs executive discretion
  • Balance between equality and affirmative action
  • Limits of coercive security responses

Way Forward

• Inclusive political dialogue with all ethnic stakeholders
• Parliamentary route only for ST inclusion decisions
• Independent reconciliation and rehabilitation framework
• Strengthen misinformation regulation mechanisms
• Gradual restoration of elected government  
• Confidence-building measures between hill and valley regions

RIGHT TO DIGNITY

Context of the News

• ASHA and Anganwadi workers in West Bengal are demanding:
  • Monthly wage of ₹15,000
  • Recognition as regular workers
• Highlights long-standing policy of treating frontline welfare workers as “scheme workers/volunteers”.
• Raises issues related to labour rights, social security, and Centre–State fiscal responsibility.

Key Facts & Developments

• Integrated Child Development Services (ICDS) launched in 1975:
  • Anganwadi workers classified as honorary workers, not employees.
• National union of anganwadi workers formed in 1989.
• Liberalisation era:
  • Expansion of welfare schemes without creation of permanent government posts.
• State of Karnataka vs Ameerbi (1996):
  • Anganwadi workers not government employees.
• ASHA programme (mid-2000s):
  • Workers designated as “activists”.
• 45th Indian Labour Conference (2010) recommended:
  • Regularisation
  • Minimum wages
  • Pension and gratuity
  • → Not implemented.
• ICDS budget cut (2015).
• Centre froze honoraria contribution in 2018.
• States compensate through top-ups → inter- State pay disparity.
• Labour Codes:
  • No explicit minimum wage or pension guarantee for scheme workers.

Static Linkages

• Article 21 – Right to life (includes livelihood and nutrition).
• Directive Principles:
  • Article 38 – Social justice
  • Article 39 – Adequate means of livelihood  
  • Article 41 – Right to work
  • Article 42 – Humane working conditions
  • Article 43 – Living wage
• Informalisation of labour.
• Gendered nature of care work.  ]
• Welfare state obligations.

Issues / Challenges

• Absence of minimum wages.
• No pension or gratuity coverage.
• Legal exclusion from labour protections. 
• Fiscal burden shifted to States.
• Unequal remuneration across States.
• High workload without employment security.
• Weak implementation of tripartite recommendations.

Way Forward

•  Legal recognition as employees.
• Inclusion under Code on Social Security.
• Implementation of Indian Labour Conference recommendations.
• Uniform wage framework through Centre– State sharing.
• Pension and social security coverage.
• Strengthening labour protections for scheme workers.