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Explainer: What are the Compensation Terms for Victims of Railway Accidents?
Sai Krishna Muthyanolla
June 13, 2023
The tragic triple-train accident in Balasore, Odisha on 02 June 2023 resulted in the death of nearly 300 passengers and several hundreds were reported injured. Apart from the compensation announced from various relief funds, the railways also has a compensation scheme. Here are the details.
The tragic triple-train accident in Balasore, Odisha on 02 June 2023 resulted in the death of nearly 300 passengers and several hundreds were reported injured. The central government and different state governments have announced financial assistance to the kin of deceased persons and to those who sustained injuries. However, apart from the compensation from relief funds announced by governments, Indian Railways is legally bound to compensate for the loss. There are also insurance covers that train passengers can avail of at the time of booking train tickets for a small amount. In this story, we look at the assistance provided by the railways at the time of unfortunate incidents.
Railways Act, 1989 clearly establishes the liability of the Railway Administration at the time of accidents
Section 124 of the Indian Railways Act, 1989 deals with the extent of liability of the Railway Administration for death, injury, or damage of goods belonging to passengers due to accidents. According to the Act, if a railway accident occurs involving at least one train carrying passengers including a railway servant on duty, the railway administration is legally bound to pay a prescribed compensation for loss of lives, injuries, and damage to goods belonging to passengers in the accident. The accident may be due to collision, derailment, fire, or explosion, or due to road vehicles colliding with trains at level crossings, etc.
However, no compensation would be provided if the passenger dies or gets injured in the following cases-
Since 1994, the Act has also made the railway administration liable to pay compensation for loss of life or injury to bonafide rail passengers, who become victims of untoward incidents such as terrorist acts, violent attacks, robberies, dacoity, rioting, shoot-out or arson by any persons in or on any train carrying passengers, waiting hall, cloakroom, reservation or booking office, platform, any place within the precincts of a railway station or the accidental falling of any passenger from a train carrying passengers.
Quantum of compensation ranges from Rs. 64,000 to Rs. 8 Lakhs
The quantum of compensation to be paid is determined by the Railway Accidents and Untoward Incidents (Compensation) Amendment Rules, 1990. Under these Rules last revised in 2017, the amount of compensation payable in case of death is Rs. 8 lakhs. For injuries, the amount depends on the nature of the injury sustained and ranges from Rs.64,000 for fractures of arms and legs to Rs. 8 lakhs for loss of body parts or amputation. Prior to the revision, the amount was half of the present amount, between Rs.32,000 to Rs. 4 lakhs.
The railway administration also provides ex-gratia relief soon after an accident to meet the immediate expenses arising out of the situation. It is not taken into account during the time of final settlement of compensation claims. The amount varies from Rs. 500 for simple injury to Rs.15,000 for grievous injury, and Rs. 50,000 for death during train accidents. The amount varies for untoward incidents and accidents at manned level crossings due to Railway’s prima facie liability.
Applications for compensation are to be made with the Railways Claims Tribunal
Section 125 of the Act lays out the procedure to claim compensation under the Act. The application is to be made to the Railways Claims Tribunal by the person who has sustained the injury or suffered any loss, or any agent duly authorized by such person on this behalf, or by dependent in case of death of a passenger in the accident/incident or guardian, in case of a minor. The Tribunal will decide the application. There are around 20 benches of the Tribunal that are spread across the country. The principal Bench is in New Delhi. The Tribunal was set up in 1989 to provide speedy justice to rail users and passengers.
Since 2016, an optional insurance scheme has been rolled out for railway passengers
Apart from this, an Optional Travel Insurance Scheme was launched in 2016 for the Confirmed/RAC Railway passengers who book e-tickets through the official website of the Indian Railway Catering & Tourism Corporation (IRCTC) portal at the premium of Rs. 0.92 per passenger. The premium amount was further reduced to Rs. 0.35 per passenger in 2021. At the time of booking the ticket, the option to avail of the policy is displayed. For those who avail the same, after booking the ticket, the nomination details are to be filled out at the respective Insurance Company site that has been sent through SMS/Email. If nomination details are not filled in, then the settlement shall be made with legal heirs if the claim arises.
Only Indian citizens are covered under the insurance policy
The policy is only for Indian Citizens and children up to 5 years of age are not covered under the scheme if they are not booked with a seat/berth. Two Insurance Companies- Liberty General Insurance Ltd. and SBI General Insurance Co. Ltd are responsible for policy issuance and claims settlement.
The definition of accident and untowardly incidents for the insurance is as given in the Railways Act discussed earlier. The policy coverage is for each passenger under the PNR in case of death, permanent total disability, permanent partial disability, and hospitalization expenses for injury and transportation of mortal remains following a rail accident or untoward incident.
As per the guidelines, if a passenger dies in a train accident or suffers a permanent total disability, then an insurance amount of up to Rs. 10 lakhs is paid (100% of the sum insured). If the passenger suffers a permanent partial disability, then the compensation provided to them is Rs 7.5 lakh. In case of an injury arising out of the accident, hospitalization expenses of Rs. 2 lakhs are paid and in case of transportation of mortal remains, an amount of Rs.10,000 is paid. Depending on the permanent partial disability, the compensation ranges from 10% to 100% of the insured amount.
PMO & State Governments have announced ex-gratia relief for victims in the Odisha train tragedy
Apart from the above-discussed compensation schemes, states and the Central Governments may extend financial support to the victims with their funds. For instance, in the case of the Balasore Train incident, various governments have also announced financial support. The railway minister announced an ex-gratia compensation to the victims of Rs. 10 Lakh in case of death, Rs. 2 Lakh towards grievous injuries and Rs. 50,000 for minor injuries. The Prime Minister announced that an ex-gratia from the Prime Minister’s National Relief Fund (PMNRF) of Rs. 2 lakhs would be given to the next of kin of each deceased in the train mishap and the injured would be given Rs. 50,000. In addition to the PMO and Railways Ministry’s announcements, the Odisha Chief Minister announced ex-gratia of Rs. 5 lakhs for the kin of the deceased and ex-gratia of Rs. 1 lakh for seriously injured persons. The Chief Minister of Tamil Nadu and the Chief Minister of Andhra Pradesh have also announced ex-gratia for the victims.
Featured Image: Compensation Terms for Victims of Railway Accidents


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Explainer: Different Categories of Security extended by the Government?
Sai Krishna Muthyanolla
January 10, 2020
X Category security cover of Sachin Tendulkar was recently withdrawn. But what are these categories and what do they mean? Here is an explainer.
Recently, in Maharashtra, X category security cover of Sachin Tendulkar was withdrawn by the newly formed Maharashtra Government. Meanwhile, Aaditya Thackeray, now a minister in the Maharashtra government and son of Chief Minister Uddhav Thackeray was upgraded to Z category from Y+. But what is X, Y+ and Z security? What are the different categories of security provided to VIPs? Who is responsible for providing security? What is the role of the police? Here is an explainer.
VVIP is an abbreviation of ‘Very Very Important Persons’, usually the President and Prime Minister of India. VIPs (‘Very Important Person’) and VVIPs may be facing threats from terrorists, militant groups or even criminal gangs. The nature of threat, however, varies depending on the individual, their position and power along with other factors. Security is also provided to Judges of the High Court and Supreme Court to facilitate decision making without any bias.
Both Central and State governments extend security to individuals based on certain criteria
Some important people may be facing threats by virtue of their position because of which security cover is provided to them by the government. The President, Prime Minister, Vice President, Union Ministers, Supreme Court Chief Justice and Judges, Speakers of Lok Sabha and other government functionaries who deal with subjects related to national security are some of them. The provision of security cover to such individuals falls under the purview of Union Home Ministry. There could be others who face threats at a local level and such people are extended security by the State governments.
Guidelines for security arrangement are
laid down in Blue Book and Yellow Book
Security
arrangements in case ofthe President, Vice President and Prime Minister are made as per the guidelineslaid down in the ‘Blue Book’ issued by Home Ministry. For other individualsincluding political personalities, security arrangements are made on the basisof measures mentioned in the ‘Yellow Book’ titled ‘Security arrangements forthe protection of individuals’ after threat assessment by security agencies.
Fordignitaries including Members
of Parliament, securityprotection on behalf of the central government is given only after threatassessment. However, state governments also have their own criteria to providesecurity to MPs. The provision of security to an individual other than thoselisted above, residing in a particular state is determined by the state
government since ‘lawand order’ is a state subject as per the Indian Constitution.
Every year, the government receives many requests for security cover. Based on threat assessment, it decides whether or not to provide security cover. Once a decision is taken to provide security cover, central security cover is extended or the relevant state government is requested to take necessary action.
Central security agencies conduct threat
assessment on a time to time basis
Through threat assessment, nature and gravity of threat are determined on the basis of which the category of security cover is decided. The assessment is done on a periodic basis by the Central Security Agencies.  The decision on whether to continue, withdraw or modify the existing security cover is based on the recommendation put forth by the security agencies.
Special Protection Group provides
security to PM and immediate family
Security to Prime Minister of India and their immediate family members is governed by the Special Protection Group Act, 1988. The former PM and their immediate family members also get security cover under this act for five years from the end of their tenure. Special Protection Group or SPG was raised in 1985. Special training is imparted to SPG members to provide proximate security to PM, former PM, and their families. They also work with the Intelligence Bureau and local police force for security arrangements. Members in SPG comprise of those from the National Security Guard and Central Reserve Police Force (CRPF) personnel.
CRPF personnel are also appointed to
provide security to VIPs
According to the CRPF website, about 7.5% of the CRPF personnel are deployed for providing security to VIPs mainly in the states of Jammu and Kashmir, Andhra Pradesh, Bihar and the North-Eastern states. CRPF also provides security to Union Ministers, MPs and other important people. Apart from this, CRPF is involved in protecting vital installations, dealing with Left Wing Extremism, conducting rescue operations during disasters and more.
On the other hand, the National Security Guard (NSG) is a specialized force set up to deal with specific situations and exceptional circumstances to thwart acts of terrorism.
Central government to relieve CRPF
personnel from VIP protection progressively
However, the government, in 2018 stated that it will relieve CRPF personnel from VIP protection duties gradually. The duty would also be shifted to the Central Industrial Security Force and NSG. In 2019, there were reports that following a comprehensive assessment, the government relieved 1,300 security personnel from VIP duty. Security to an undisclosed number of protectees was also withdrawn by the Centre. Instead, security was asked to be provided by their respective states.
The other VIP Security categories  are Z+, Z, Y and X
Apartfrom SPG, the other main
categories of VIPsecurity cover in India are Z+, Z, Y and X. The category of protection isdetermined based on threat perception and assessment. The following sectionlooks at the role of police in providing security cover to VIPs. Specialinstructions are given to security under various categories when VIPs travel orattend public functions.
Level of security provided varies with
each category
Forthose protectees with X category of security, only two ‘Personal SecurityOfficers’ are provided. This is the lightest security level for a VIP.
Thesecurity cover provided to those protectees under Y category include an armedguard in uniform at their residence throughout the day. They are also providedwith additional security during dusk and dawn. Protectees under Y category mayhave a PSO with a 9 mm pistol and another PSO with Sten gun throughout the day.Y+ category of security is for those facing a greater threat, serious thanthose with Y security.
Protectees with Z category of security are provided with bulletproof vest and car
Z category protectees are given armed static guards to cover their place of stay. The strength can vary from 2 to 8 guards depending upon the threat and place of stay. Two PSOs, similar to those under Y, are also stationed round the clock. Screening watchers, two during the daytime and one at night are appointed. Further, they are provided armed escorts for all road journeys. Strict access control to the protectee is also ensured. Safety at public events using devices such as metal detectors, bomb detectors and more will also be taken care of by the police. The protectee is also provided with a bulletproof vest.
Under Z+ category, protectees are provided with NSG mobile security. In addition to the security provided to those under Z category, the protectees in this category, if necessary, are provided with bulletproof car and escorts in three shifts. Additional security arrangements are also made depending on the location.
No Comprehensive data on the number of such protectees
Beyond these, state governments also extend security cover to individuals based on other criteria. There is no comprehensive estimate on the number of such protectees across the country. But as per the response provided by the government in March 2018, around 300 persons were being provided security in the central list.
Featured Image: Categories of Security

source: news-factly

created: January 10, 2020

license: Creative Commons - Attribution - https://creativecommons.org/licenses/by/4.0/

author: Sai Krishna Muthyanolla


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Explainer: What Are The Different Inflation Related Price Indices?
Sai Krishna Muthyanolla
April 28, 2023
If one follows news regularly, they will come across words such as inflation, consumer price index, and so forth. There are various types of price related indices such as WPI, CPI, CFPI. Here is an explainer on what they mean.
Whether you go to buy groceries from the store or buy your favourite snack, more often than not, you will notice that the prices have changed. More importantly, if you have followed the news lately, you must have come across words such as inflation, consumer price index, and so forth. But what are these? Why are these necessary? How are these measured? What do they indicate? We will break it down in today’s story.
What and why of macroeconomic indicators
The performance of the economy impacts all of us. Policymakers and economists analyse economic performance by closely following the macroeconomic indicators and determining the likely contractions and expansions in the near future. These indicators target specific areas of the economy, thereby providing a comprehensive picture of the state of the economy.
The economic significance, statistical adequacy, and consistency in the availability of the data are considered to be the key criteria in choosing the right indicators. In India, the Consumer Price Index (CPI), Wholesale Price Index (WPI) and Index of Industrial Production (IIP) are often talked about when analysing the performance of the economy. We look at these three indicators in this story.
Snapshot of the three indicators
Below is the overview of the three indices.
How is the base year selected?
The primary objective of the base year is to enable inter-year comparisons, thereby giving a fair idea of changes in the parameters. The basic criteria for the selection of base year are as follows.
A year fulfilling the majority of the characteristics is chosen as the base year. While the first four criteria have statistical and economic consequences, the last one is for better comparability. The chosen base year is revised periodically to capture the changes in the structure and composition of the industry, and consumption patterns of people and to improve the quality and representativeness of the indices.
Wholesale Price Index (WPI)
The wholesale price index (WPI) represents the cost of goods that are sold in bulk and transacted between businesses as opposed to consumers. The WPI basket is comprised of three major categories- Primary articles, fuel and power, and manufactured goods. The Wholesale Price Index (WPI) number is a measure of the average wholesale price movement for the economy. However, WPI does not cover services.
WPI is often used as a deflator in the Gross Domestic Product (GDP) measurement. It is also used to create escalation clauses for the supply of equipment, construction activities, and raw materials. In long-term sales and purchase agreements, business enterprises frequently include price adjustment (escalation) clauses as a means of managing price increases.
Revision of base-year of WPI
The set of Wholesale Price Index numbers with the base year 2004-05 was introduced with effect from 14 September 2010. Owing to the structural changes in the Indian economy, it was required to update the index basket of the current series of Index numbers of WPI (Base 2004-05=100) and undertake the review of the coverage of commodities, base year, and weighting diagram.
Under the leadership of the late Dr. Saumitra Chaudhuri, a working group for the modification of the wholesale price index numbers (base: 2004-05=100) was established. In accordance with the Working Group’s suggestion for the WPI (Base 2004–05) series revision, a representative commodity basket of 697 items has been chosen.
Below is the comparison of both the base years.
Further, a committee was established in 2019 for the revision of the base year 2011-12. The draft report proposed 2017-18 as the new base year.
Consumer Price Index (CPI)
The Consumer Price Index (CPI) is an index used to track changes in the retail prices of specific goods and services that consumers in a given demographic group spend their money on over time. In practice, a CPI measures the cost of purchasing a fixed basket of goods and services. The coverage and applicability of CPIs are generally limited to specified socio-economic groups.
Below are the types of CPIs are compiled and released at the national level on a monthly basis.
Labour Bureau under the Ministry of Labour and Employment compiles the first three while the National Statistical Office under the Ministry of Statistics and Programme Implementation compiles the fourth and fifth indexes.
CPI for Industrial workers:
Since its dissemination began in 1946, this indicator is the most historical of the CPI indexes. It tracks changes in the costs of a set basket of goods and services that Industrial Workers purchase over time. For government personnel, it is used to fix the dearness allowance and index wages.  It is currently calculated using 2016 as the base year.
CPI for Agricultural and Rural Labourers:
CPI-AL is basically used for revising minimum wages for agricultural labour in different States. The index is used for determining minimum wages and those for the government’s rural jobs programme under the Mahatma Gandhi National Rural Employment Guarantee Act. Currently, CPI-AL/RL with 1986-87 base is available for only 20 states.
Consumer Food Price Index
It is a measurement of changes in the retail cost of food items that a specific population group purchases. Beginning in May 2014, the Central Statistics Office (CSO) provided it in three categories on an all-India basis: rural, urban, and combined. To evaluate price changes for food and their effects on the level of prices generally, it is crucial to measure price movement. It is currently calculated using 2012 as the base year.
Index of Industrial Production (IIP)
The all-India IIP is a composite indicator that tracks short-term shifts in a basket of industrial product output volume over a specified time period relative to a selected base period. The Central Statistics Office (CSO) compiles and releases it each month, six weeks after the reference month.
The mining, manufacturing, and electricity sectors are the ones included in the current general index of industrial production due to data availability and other resource limitations.
The base year for IIP was revised from 1993-94 to 2004-05 to 2011-12. Below is the sectoral composition of IIP as per the old and latest base year.
As per the use-based classification in the IIP, below are the changes in weights after the revision of the base year.
The trend in annual growth rates in the IIP is as below.
Source: Ministry of Statistics and Programme Implementation
Featured Image: Inflation-Related Price Indices


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Explainer: What are the different ‘Medical Oxygen’ systems in use today?
Sai Krishna Muthyanolla
April 30, 2021
As the number of COVID-19 cases increase sharply across India, the need for medical oxygen is also growing. But what are the different ‘Medical Oxygen’ systems that are used to supply oxygen to those in need? Here is a detailed explainer.
On 28 April 2021, the Government of India released a Press Statement that stated that around 1 lakh portable Oxygen Concentrators would be procured from PM Cares fund.  The setting up of 500 more PSA oxygen plants was also announced. These are in continuation of the efforts to ramp up oxygen supply in the country in the wake of a sharp increase in the COVID-19 cases and those requiring oxygen support.
This statement from the government comes after various reports of shortage of medical oxygen across the country in view of treating the increasing COVID-19 cases. The country is in midst of the second wave of COVID-19 surge, with more than 3.5 lakh new cases being reported every day in the last few days. More than 3 thousand daily deaths are also being reported due to COVID-19.
While there is no proper information or data as yet on the number of deaths or complexities in COVID-19 treatment due to lack of oxygen, certain news reports have highlighted this issue.
Efforts are being directed towards increasing the capabilities of both production and supply of oxygen to different parts of the country. Different Medical Oxygen Systems are being deployed in these efforts.
In this story, we take a look at the different oxygen systems available and their specific utility. The World Health Organization (WHO) & UNICEF’s Technical Specification and Guidance for Oxygen Therapy Devices is the guiding document that we have referred to for this story.
Medical Oxygen needs to contain minimum 82% of pure oxygen
While it is a common notion that we inhale Oxygen and exhale Carbon Dioxide, the air that we breathe in contains a mix of several gases – oxygen, nitrogen, hydrogen, carbon dioxide, etc. On the other hand, ‘Medical Oxygen’ is highly pure oxygen, that is used for medical treatment. In this form of oxygen, other types of gases are not allowed in the Oxygen system source, e.g., Oxygen cylinders.
As per the specifications provided by WHO, medical oxygen should contain at least 82% pure oxygen and needs to be free of any other contamination.
As part of meeting the demand, the assistance of few industries is being sought for the production of medical oxygen. For example, the services of Steel Plants like Vizag Steel are being enlisted for this purpose. In most of these industries, Oxygen is used for processes like – oxidation, combustion, chemical reactions, cutting, etc. However, the industrial oxygen has different purity levels and is not appropriate for human use. Hence, they are required to make changes to the composition to produce Medical oxygen.
In its manual, the WHO affirms the key role of Medical oxygen in the treatment of hypoxemia (very low levels of oxygen), in basic emergencies, respiratory illnesses, etc.
Respiratory systems are among the more suspectable body systems to be affected by COVID-19. Hence, medical oxygen assumes importance in the treatment of COVID-19 infected patients. The increase in demand is in proportion to the increasing COVID-19 cases.
Oxygen Concentrators & Oxygen cylinders are among the main Oxygen sources in Low resource Settings
Medical Oxygen is required in various levels of the health system i.e., ranging from Primary Healthcare, emergency transport to Intensive care units (ICUs). The oxygen systems which are required to meet these specific needs also vary accordingly.
Basically, Oxygen system needs to include:
Different aspects like health facility, available infrastructure, capacity, supply chain, cost, etc. are considered to determine the oxygen system, especially the Oxygen Source.
Oxygen Source forms the important component of any Oxygen system, as it is the main source from where the oxygen is being administered unto the patient. Depending on the requirement, capacity, and the settings, there are 4 major categories of Oxygen sources.
Among these, Cylinders & Concentrators can be set up in Low Resource Settings (LRS).
Oxygen Cylinders
Compressed Oxygen gas can be stored in cylinders. Oxygen is filled in these cylinders at a Gas manufacturing plant. This is done either through (a) Cryogenic distillation or (b) Pressure Swing Absorption (PSA).
These cylinders can either be used as part of a linked-up mechanism in health facilities or directly used for an individual patient.
Oxygen Concentrators
An Oxygen Concentrator is an electrically powered & self-contained medical device that can concentrate oxygen from ambient air. The Concentrator uses PSA i.e., Pressure Swing Absorption technology, to draw the air from the environment. It extracts Nitrogen and can produce 95.5% concentrated oxygen.
Oxygen Plant
An Oxygen plant is an on-site Central source of oxygen. Here, oxygen is piped directly to the terminal units in the patient areas. They make use of either Cryogenic Distillation or PSA technology to generate oxygen. Similar to Oxygen Concentrators, even Oxygen Plants need a reliable source of power for proper functioning.
A pipeline system is connected to the Oxygen plants which facilitates the supply of oxygen at high pressures. Unlike a Concentrator which cannot be used to supply oxygen for machines such as ventilators, the Oxygen Plants can generate enough high-pressure oxygen to support ventilators, anaesthetic machines etc.
Liquid Oxygen Tankers
Another source of oxygen that can be set up at the health care facilities is Liquid Oxygen Tanks.  These are large & bulky oxygen tanks that are periodically refilled by a supplier. The Liquid oxygen tank can supply oxygen to a centrally piped system that is set up in the healthcare facility. They use Self-Vaporization which eliminates the need for a power supply. However, the space required, and the technicalities involved in setting up such a system make them a less preferred option, especially in places that cannot afford such a facility.
Furthermore, the reliance on supply mechanism for refilling, makes it a less viable option especially in a country like India whose oxygen & gas supply delivery system may be required in less in low resource rural settings
Other equipment used for Oxygen supply
While the above systems act as the source of medical oxygen in a healthcare facility or to a home-based patient, there are other Oxygen Delivery & Monitoring systems like – flow meters, regulators, humidifiers, ventilators etc. that these are connected with in ensuring the delivery of oxygen to the patients.
Featured Image: Medical Oxygen Systems


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Explainer: What are the different National Symbols of India?
Sai Krishna Muthyanolla
December 23, 2019
A Congress MP from Kerala recently raised the issue of Lotus being printed on the Indian passport. Is Lotus the ‘National Flower’? What are the other national symbols in India? Do you know about India’s National Microbe?
M K Raghavan of the Indian NationalCongress and representing Kozhikode, Kerala in the Lok Sabha has recently raised an issue during zero hour about theprinting of Lotus symbol on the Indian Passport.  The concern raised was that lotus alludes tothe Party Symbol of Bharatiya Janata Party.
A clarification was issued by Ministryof External Affairs (MEA) after this was raised in the parliament. It was stated that this is part of the enhancedsecurity features being implemented with the passport and other nationalsymbols would also be included going forward on a rotational basis.
However, a debate has ensued aboutLotus being the national flower of India. In this story we look at the variousofficial national symbols of India and also explore other symbols which are theconsidered as national symbols in the larger national conscience.
New national symbols are added time
to time for varied purposes
While, there is no concise list ofNational Symbols, the Government of India has over a period of time declaredvarious national symbols through official notifications & legislations. Fewof the National symbols like the National Flag, National Anthem etc wereadopted at the time of India adopting the constitution, while few other likeTiger was accorded the status of National Animal to create awareness about thembeing endangered species.
There are 7 symbols specified as per India’s National Portal i.e. www.knowindia.gov.in which include: National Flag, National Anthem, National Song, StateEmblem, National Bird, National Animal and National Flower. There may be otherswhich are accorded National symbol status by government of India.
National Flag
The National Flag of India was adoptedby Constituent Assembly of India on 22 July 1947. It is a horizontal Tri-colour flag consisting of :
All these three bands are in equalproportions. The centre of the White Band has a Navy-Blue Wheel/ Chakra.  The specifications of the Indian Flag areprovided in the Flag Code of India – 2002.
The three colours in the Indian Flagsignify the following.
The Wheel at the Centre is called ‘DharmaChakra’ and has 24 spokes. It is taken from the abacus of Ashoka’s Lion Capitalat Sarnath.
The Flag code of 2002 provides thespecifications about the make and dimensions of the Indian Flag and also thevarious rules to be followed while hoisting it.
National Anthem
‘Jana Gana Mana’, composed byRabindranath Tagore is adopted as the National Anthem of India.
It was adopted by ConstituentAssembly of India, on 24 January, 1950. It was first publicly sung at CalcuttaSession of Indian National Congress in 1911. The runtime of the full version ofNational Anthem is 52 seconds. There are multiple orders of the Supreme Court aboutthe responsibility of the citizens during recital of National Anthem. Anyinsult to the national symbols is an offence under ‘The Prevention Of Insults To
National Honour Act, 1971’.
National Song
‘Vande Mataram’ is adopted from BankimchandraChatterjee’s famous novel Anand Math. It was first sung during 1896 session ofIndia National Congress in Calcutta, by Rabindranath Tagore.  The song and the slogan ‘Vande Mataram’ becamea key part of Indian Freedom Movement.
The first two verses of the poempenned by Bankimchandra Chatterjee is adopted as the National Song.
State Emblem
India’s State Emblem is adopted from Sarnath Lion Capital of Ashoka. Itwas adopted on 26 January 1950 by Government of India.  The Lion Capital has four lions , mounted backto back on circular abacus. The  abacusrests on a bell shaped lotus and consists sculptures of a horse, bull and alion. These are separated by Dharma Chakras.
The State Emblem of India is theprofile of this Lion Capital. It shows three lions mounted on the  abacus, which has a Dharma Chakra at thecentre flanked by a bull on right and galloping horse on left. Outlines of theDharma Chakra are on the extreme right and left. While, the lotus from the LionCapital is excluded in the Emblem, the motto ‘Satyameva Jayate’ in Devangari scriptis written below. It is adopted from Mundaka Upanishad and means ‘Truth AloneTriumphs’.
The government of India, from timeto time issues regulations regarding the use of National Flag, NationalAnthem and State Emblem.
National Calendar
While the Gregorian Calendar isfollowed in India in the daily life, the Government of India also follows Saka Era along with Gregorian Calendar forofficial purposes including
This was adopted on 22 March 1957. Everyofficial notification of the government contains reference to the Saka calendarin addition to the date in Gregorian.
National Currency Symbol
The National currency of the countryis Indian Rupee and since 15 July, 2010 Government of India has adopted a sign to represent it.
It is an amalgamation of ‘Ra’ in Devanagari Script andRoman Capital Letter ‘R’. It has two parallel horizontal stripes running at topwhich symbolizes Indian national flag and also ‘Equal to’ sign. It has beendesigned by Udaya Kumar, from IIT Bombay after his entry was picked up in the open competition held by Ministry of Finance.
Flora & Fauna as National
Symbols
Countries assign certain species ofFlora and Fauna as their national symbols. In most of the cases these tend torepresent and hold an important place in the culture of the country. In fewother cases, they are done as part of conservation efforts and to create theawareness about them.
India has also designated certainbird, animal and plant species as national symbols.
National Bird
Peacock, known as the Indian Peafowlis considered to be the National Bird of India since 1963. This is confirmed via a notification issued by Ministry of Environment andForests.
Furthermore, Peacock is a protectedspecies under Wild Life Protection Act-1972. The scientific name of Peacock i.e.Indian Peafowl is Pavo
cristatus.
Sarus Crane, Swan, Great IndianBustard, Brahminy Kite etc where few of the other birds considered forconferring the honour of National Bird of India. The criteria for choosing theNational Bird were :
Indian Peafowl, fits the billing onall these criteria. Furthermore, Peacock and its motifs are an important partof the Indian Mythology, history, culture and traditions.
National Animal
Bengal Tiger i.e. Panthera Tigris is the National Animal of India. Responding to a question asked in Rajya Sabha, the Minister of State for HomeAffairs stated that as per the notification issued by Ministry of Environment, Tigeris notified as the National Animal.
Government of India has initiated Project Tiger in 1973 as a focussed approachtowards Tiger conservation. There are currently 18 Tiger reserves in thecountry. As per Tiger Census reports there are 2,967 tigers in India asof 2018, an increase from 1411 in 2014. Factly has earlier published stories onthe number of Tigers and Tiger deaths in India.
National Flower
The information on the Indian Government’sNational portal cites Lotus as National Flower of India. Its scientific name is Nelumbo
Nicifera Gaertn.  It holds an importantplace in Indian tradition by being part of various rituals as wells as lotus motifsbeing a prominent part of art and culture.
However, in response to a question asked in Rajya Sabha, on 10 July 2019,Minister of State for Home Affairs said that there is no notification issued byMinistry of Environment, which accords Lotus the status of National Flower ofIndia.
National Tree
Indian Banyan i.e. FicusBenghalensis also called Indian Fig Tree is National Tree of India as per Government of India’s national
portal.
It has been an integral part ofIndia’s tradition and culture. It roots itself and spreads over large areascausing its long life. It has since time immemorial been a crux of the life inIndia , with its shade being an ideal spot to shield from the sun. The widespread branches and the trunk form shelter for various flora and fauna. Allthese aspects represent the idea of India and hence is considered to be theNational Tree of India.
National Fruit
Mango, from the tree Mangifera
Indica has been grown in India for ages. It has been accorded the status of National Fruit of India. It is one of the most popularfruits in Tropical Climatic regions and India itself has  more than 100 varieties.
National Aquatic Animal.
Ganges River Dolphin is one of themost endangered species. The Government of India has on 18 May 2010, notified Ganges River Dolphin as the National AquaticAnimal of India. The intent is to create awareness in regards to conservationand protection of the species.
It’s scientific name is Platanista
Gangetica and is marked by its long pointed snout, visible teeth on boththe jaws and very small eyes. They are found in Ganga, Brahmaputra and Meghanarivers. With less than 2000 in number it is recognized as highlyendangered  under Schedule 1 of WildlifeProtection Act.  It is one of the only 4species of Fresh Water River Dolphins and is threatened by water pollution andpoaching.
National Heritage Animal
Government of India’s Environment &Forests Ministry has declared Elephant as National Heritage Animal in theyear 2010. Elephants have been an indispensable part of India’s history andalso form a key part of Ecology. While many of the initiatives proposed likesetting up of National Elephant Conservation Authority are yet to see the lightof day, multiple initiatives have been taken since 2012 for conservationof Elephants and to reduce Human-Elephant conflict.
National Microbe for India
Not only from the world that isvisible to the naked eye, India also has a symbol from the microscopic world. Lactobacillus( Lactobacillus delbrueckii subsp. Bulgaricus) is declared s the National Microbe for India October 2013.
The selection process was through avoting by children who visited Science Express Biodiversity Special Train thatvisited various stations across the country. This is the main bacteria that isused to make yogurt and curds and hence a part of Indian culture and lifestyle.
National River of India
Ganga, or the Ganges is accorded thestatus of National River of India. Apart from being considered as theholiest river as per Indian tradition, it is also the largest river that flowsin India. Its basin is the largest populated river basin in the world.
Ganga has been since the ancient times,and integral part of Indian culture.  However,over the years, Ganga has been heavily affected by Pollution. The National
Mission for Clean Ganga has been established to clean the river. The survival of one of thenational symbols i.e. Ganga River Dolphin depends on reduction of pollution inGanga.
Falsely accorded national symbols
Apart from these symbols, there areclaims about India Cobra being National Reptile, Pumpkin being NationalVegetable and other claims around National insect etc. but these do not find amention in the official records.
Hockey as the national sport is oneof the other myths around National symbols. However, Government has notdesignated any sport  as the nationalsport. Along with Cricket, Hockey is one of the most popular sport and India wasvery successful in International Hockey in the yester years.
Another popular myth in commonIndian parlance is Hindi being the national language. There is no nationallanguage in India. Hindi, however, is the official language along with Englishfor official purpose. Factly’s story on this issue can be read here.

created: December 23, 2019


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Different types of tests being used in India for COVID-19 detection
Sai Krishna Muthyanolla
July 22, 2020
About 3 lakh tests are now being conducted per day across India. These tests include multiple types of tests like RT-PCR, TrueNat, Antigen etc. How do these tests differ from each other and what is the process of testing? Here is a detailed explainer.
India has so far conducted around 1.45 crore COVID-19 tests with the number of daily tests around 3 lakh.  However, India’s tests per million continue to be among the lowest in the world, because of the huge population of over 1.3 billion. There has been a significant improvement over the past two months in the number of daily tests.
Across the world, different countries are using varied testing strategies and different types of tests.  India is also using multiple types of tests to detect COVID-19 among suspect cases.  Here is a detailed look at the different types of approved tests being carried out in India for COVID-19 detection.
RT-PCR Tests
RT-PCR Tests are the standard tests being conducted in India for detecting cases of COVID-19. Even across the world, RT-PCR is the most used test. RT-PCR Test implies ‘Reverse Transcription – Polymerase Chain Reaction’ test.
In this test Nasal & Throat Swabs are used to detect the presence of the virus. RT-PCR tests help in early detection of COVID-19 as this test detects the RNA of the virus, which is present in the body before the formation of any antibodies or any visible symptoms. A process called ‘Reverse transcription’ is used to convert RNA to DNA , before detecting the virus.
Process of Test:
RT-PCR tests are more accurate and also provide the advantage of running around 90 samples in one go. Sometimes, the tests present with a false negative and hence it is conducted twice before a patient is confirmed as non-infectious.
The sensitivity of these tests is around 60-80% i.e. accuracy of finding out someone is positive and has infection (true positive rate). Whereas the specificity i.e. accuracy in identifying those without the infection is around 90-95 %.
TrueNat & CBNAAT tests
TrueNat tests have a quick turnaround time of around 60 minutes. These are commonly used for detection of Tuberculosis and HIV. TrueNat is developed by an Indian firm MolBio Diagnostics’ Pvt ltd.  On 19 May 2020, ICMR  approved the use of TrueNat testing for COVID-19.
The working principle of TrueNat tests is same as that of RT-PCR but uses a smaller kit. However, the challenge with these tests is that that only 1-4 samples can be run in one go. This restricts the maximum number of tests that can be conducted to around 24-48 samples per day.
Process of Test :
Unlike RT-PCR tests, they pose minimum biosafety hazard as the viral lysis buffer that comes with the COVID-19 cartridges inactivates the virus. The minimal sample handling involved, and the close nature of the tests also limit the biohazard risk. TrueNat tests provide the scope for increase in access to testing.  All the tests conducted are required to be updated on ICMR portal.
New additional strategies for testing
On 23 June 2020, ICMR issued an advisory with new additional strategies for COVID-19 testing.
Rapid Point-of-Care (PoC) Antigen Detection Test
Rapid Antigen detection tests also lookout for virus similar to that of RT-PCR tests. On 14 June 2020, ICMR  issued an advisory on the use of Antigen tests for detection of COVID-19.
There is no reliable antigen test across the world. The antigen test approved by ICMR is a point-of-care test, performed outside the conventional laboratory setting and is used to quickly obtain the results.
Standard Q COVID-19 Ag detection kit developed by SD Biosensor, a South Korea based company is approved by ICMR. The company has a manufacturing unit in Manesar, Gurugram, India.
Process of test
ICMR and AIIMS have evaluated the Standard Q COVID-19 Ag detection assay developed by SD Biosensor. As per the results, the test has very high specificity in the range of 99.3% to 100% at both the sites. The Sensitivity of the test ranged between 50.6% to 84%.  It is observed that higher viral load corelated with higher sensitivity.
In case the result is positive, it needs to be considered as a True Positive. However, if the result is negative, ICMR recommends that the rapid anti-gen tests needs to be confirmed with real time PCR test.
ICMR has approved the use of these tests only in:
IgG Antibody test for COVID-19
IgG Antibody test is being used only for the purpose of surveillance and not for diagnosis. IgG antibodies generally start to appear after two weeks of onset of infection once the individual has recovered after infection. These antibodies are proteins produced by the body and are used by the immune system to neutralise the viruses. Therefore, the IgG test is not useful in detecting acute infection. However ICMR has advised the use of these tests for;
Unlike RT-PCR tests, the antibody tests require blood samples to identify antibodies for coronavirus. The results are not hundred percent reliable and may give false positives. An Anti-body tests typically gives results in 20-30 minutes. ICMR has issued a strict advisory of using only IgG based ELISA and CLIA assays for conduct of sero surveys.
India’s first anti-body testing Kit-ELISA was developed by NIV- Pune (National Institute of Virology). The test kit developed by ELISA was found as 92.7% sensitive and 97.9% specific.
The positive predictive value was 94.4% and negative predictive value was 98.14%. As per ICMR Journal, this indigenously developed IgG ELISA was found to be sensitive and specific in detection of anti-covid-19 anti bodies.
Featured Image: COVID-19 detection tests in India


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What are the directions by Courts & Tribunals about bursting firecrackers during festivals & celebrations?
Sai Krishna Muthyanolla
November 12, 2020
It is that time of the year when there is an intense debate around the directions by courts regarding bursting firecrackers. We take a look at the Supreme Court order of 2018 & the recent NGT order that laid down guidelines for bursting firecrackers during any celebration.
Every year, in October- November, the NCR of Delhi is in the headlines for its poor air quality. During the winter months, because of the low temperature and higher wind speed and humidity, particulate matter remains suspended in the air for a longer time than during other seasons. Thus, the emissions from automobiles, diesel generators, dust from construction sites, industrial pollutants and other fossil fuel emissions linger in the air for longer durations. Fumes from the millions of tons of crop stubble burned in the neighbouring agricultural states of Punjab and Haryana is also carried to the national capital which further deteriorates the air quality. At one point of time, breathing Delhi’s air was equivalent to smoking 50 cigarettes a day and flights had to be stopped due to the poor visibility.  It is during this season that the festival of Diwali is celebrated. The issue of bursting firecrackers is again in the limelight, thanks to an NGT order and a string of court orders.
Bursting of firecrackers releases toxic chemicals
Numerous studies have highlighted the deterioration of air quality arising out of bursting firecrackers, mainly during celebrations with examples from India, USA, and China. Bursting firecrackers generate dense clouds which contain copious amount of harmful and toxic chemicals such as oxides of Sulphur and Nitrogen, in addition to the black carbon particles.
Bursting firecrackers has been under scrutiny since long
Time and again, the Supreme Court has provided directions with respect to bursting firecrackers, based on the petitions being requesting a ban on them in the light of noise and air pollution. Back in 2001, the Supreme Court (SC) stated that firecrackers could be burst only between 6pm and 10pm. Later in 2005, the Court directed the Petroleum and Explosives Safety Organization (PESO) to evaluate and take necessary measures to classify firecrackers into two- those which emit sound and those which emit colour/light. Since the stress was on curbing noise pollution back then, a complete ban on bursting of sound emitting crackers between 10pm and 6am was imposed. However, no restrictions were in place for colour/light emitting firecrackers.
Writ petition filed in 2015 urging government to take measures to curb pollution in Delhi
A writ petition was filed in 2015 on behalf of three infants- two were six months old and the third was fourteen months old. The petition was filed by their fathers out of concern for their children’s health because of the poor air quality in Delhi. In the petition, it was emphasized that the air quality hits its nadir during Diwali given the indiscriminate use of firecrackers which brings ‘the situation of ‘emergency’.’ The petition urged the court to take possible measures to keep the pollution level at check by considering the different contributors of pollutants. The petitioners further asked for a ban on any form of firecrackers during festivals and otherwise.
SC imposed restrictions in bursting firecrackers instead of a blanket ban
Following this petition, the SC directed the Central Pollution Control Board to conduct a research study to evaluate firecrackers on the basis of noise levels as well as chemical composition. Taking into consideration an Indian’s freedom of religion, freedom to carry on any occupation and business, and right to life, SC’s judgement in 2018 stated the following-
NGT has called for complete ban on sale and use of firecrackers in areas with poor to severe air quality
Further to this judgement, the National Green Tribunal has recently imposed a ban on sale and use of firecrackers between 09 to 30 November 2020 in those areas where the air quality is poor, very poor, and severe. In other areas, unless there are restrictions imposed by authorities, the directions stated in the 2018 SC Judgement are applicable. Only the sale and use of green firecrackers is to be permitted between 09 to 30 November. Thus, there is a complete ban in Delhi NCR region.
The NGT’s order follows the initiatives taken by states like Rajasthan, Odisha, Sikkim, Delhi, and Chandigarh prohibiting sale and use of firecrackers to protect those infected with COVID-19 and other vulnerable groups. The NGT added that ‘air pollution aggravates COVID-19, not only crackers are to be banned/restricted depending upon air quality, all States/UTs, PCBs/PCCs must take special initiative to contain air pollution by regulating all other sources to pollution, particularly during COVID-19. No doubt pollution for crackers being seasonal source, particular focus is required thereon’.
It is also reported that the SC on 11 November 2020 affirmed the Calcutta High Court order banning the sale and bursting of firecrackers during Diwali, Chatt Puja, Kali Puja etc.in the entire state of West Bengal. In the brief hearing, the SC observed that preservation of life was more important during the COVID-19 pandemic than the celebration of festivals.
No compensation for firecrackers manufacturers
A counter argument that has always been raised when it comes to banning firecrackers is the loss of revenue and loss of employment despite being a licensed industry. The NGT acknowledged the same and added that health of citizens and environment is affected and that such restrictions are necessary to effectuate sustainable development and precautionary principle. There has been no mention on compensation to support those manufacturers and others who will be affected by the ban.
Previously, arrests were made for violating directions
In spite of there being bans and regulations in place, earlier reports indicate that there have been numerous instances of violation of these directions. About 210 persons were arrested and 371 cases were registered in Delhi alone on the Diwali night in 2019. On the other side, in Bangalore, no FIRs were reportedly filed in 2018 when firecrackers were burst beyond the stipulated time.
Air quality must be given importance irrespective of pandemic
Meanwhile, India’s tally of COVID-19 cases is the second highest in the world. Amidst the ongoing festive celebrations vitiating the social distancing norms and winter season setting in, it is being anticipated that the COVID-19 cases might increase and warnings have been issued to stay safe and take necessary precautions.
As it is, Delhi is among the worst hit states in the country because of the pandemic in addition to its poor air quality. Studies have identified that air pollution further aggravates COVID-19 fatality. The Commission for Air Quality Management (CAQM)in National Capital Region reviewed the situation in Delhi NCR and have put forth 10 immediate measures, as per a press release by the Government of India.
The issue of air quality & pollution should not just be discussed in the context of firecrackers & their regulation but given its due importance. Governments must take stringent measures to improve air quality across the country.  The National Clean Air Programme was launched by the Central government in 2019 to tackle air pollution with a target to achieve 20% to 30% reduction in Particulate Matter Concentrations by 2024. Whether India can achieve these targets remains to be seen.
Featured Image: National Clean Air Programme

created: November 12, 2020


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Explainer: What are the disaster relief funds SDRF & NDRF?
Sai Krishna Muthyanolla
July 26, 2022
Disaster relief is now a critical area of governance as climate change-induced disasters increase. We look at disaster relief in India and the funding mechanism & explain the details of such funds, along with the funds disbursed in the last few years.
In the wake of the recent heavy rains & floods, leaders from various political parties have been blaming each other for the release of disaster relief funds. Statements accusing partiality and inequity by the Union Government have also been made. A recent answer to a question in the Lok Sabha regarding the assistance of the Union Government to Telangana in the form of an NDRF release has sparked the debate once again. In this context, we explain the issue of disaster relief, the various funds available and the rules surrounding their release, and use.
Why disaster relief?
Disasters destroy prosperity. It kills hope. And when hope is diminished, nothing else can be sustained. Disaster relief can bring back this hope, a hope for a better and resilient future. Relief is not only used to cope with the disaster, but also to recover and resume their livelihoods. Hence, the size and the timing of the relief are also significant.
Irrespective of the type of disaster, the potential loss of lives, livelihoods, and assets cannot be underestimated. A timely and proportionate disaster relief aids in the restoration of economic health, as well as the aspirations of the populace.
Disaster Management in India
Disasters in India are governed by the Disaster Management Act, 2005. It mandated the creation of the National Disaster Management Authority (NDMA) and respective State Disaster Management Authorities (SDMAs). Accordingly, as per sections 46(1) and 48(1)(a) of the above act, National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF) are established. The financing pattern of these funds is explained in detail below.
What type of incidents qualify as a disaster?
The Disaster Management Act, 2005 defines a disaster as ‘a catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man-made causes, or by accident or negligence which results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area.’
Disasters such as cyclones, drought, earthquakes, fire, flood, tsunamis, hailstorms, landslides, avalanches, cloud bursts, pest attacks and frost and cold waves are considered for the utilization of SDRF, while for NDRF releases to be made, these disasters must be of ‘Severe nature’ and require the expenditure in excess of the balances in SDRF as per the guidelines on the constitution and administration of State and National Disaster Response Funds.
How do governments fund disaster relief?
Financing disaster relief is a challenge for governments. Disaster relief should be looked at from two perspectives – one, how they impact public finances by causing contingent liabilities, and two, whether they aid in minimizing the risks and vulnerability of the population. Disasters impose contingent liabilities on the governments. Since these liabilities are uncertain, and in the future, the State and the Union Governments maintain a corpus to deal with these contingent liabilities.
As per the answer provided in the parliament, funds under the NDRF and SDRF are allocated based on the recommendations of the successive Finance Commissions, set up under Article 280 of the Constitution. The Union Government contributes entirely to NDRF, while the States and the Union share the funding for SDRF in the ratio of 75:25 for general category States and 90:10 for North-Eastern and the Himalayan States. Any disbursals from these funds are governed by the ‘Guidelines on constitution and administration of SDRF/ NDRF’ and items and norms issued by Ministry of Home Affairs (MHA)’ The norms of assistance and revised list of items for relief under SDRF/NDRF is available here.
How and when are NDRF and SDRF funds disbursed?
State Governments are primarily responsible for disaster management. The Union Government supplements the efforts of the state by providing logistical and financial support. When disaster happens, the State Governments undertake relief measures using the SDRF available at their disposal. However, this amount may not be sufficient to carry out any relief work for disasters with high intensity. Whenever this happens, the Union Government releases additional financial assistance to the states from NDRF, provided the disaster is of a ‘Severe nature’. The criteria for considering a disaster as a disaster of ‘severe nature’ is unclear. It is important to understand that the contribution to SDRF from the Union and State Governments is a constitutional mandate which is not at the discretion of any government, whereas the release of funds from NDRF is dependent on the nature of the disaster and based on the recommendations of the High-Level Committee.
The mechanism for NDRF disbursal for additional financial assistance
The guidelines provide for a clear and established procedure for additional financial assistance under NDRF. Disaster-affected State Government shall submit a memorandum as per the guidelines showing the detailed sector/item-wise damage caused, along with the justification for additional financial assistance under NDRF. If the Ministry of Home Affairs or the Ministry of Agriculture assessment reveals that the funds in SDRF are adequate to provide relief, the State Government is advised accordingly.
Else, an established three-tier mechanism is followed for the calculation of disbursal of additional financial assistance to the states from NDRF. The first step is the on-spot assessment done by the Inter-Ministerial Central Team (IMCT) consisting of officials from the relevant State as well as representatives from sectoral Ministries and Departments. The report prepared by IMCT is considered by the Sub-Committee of the National Executive Committee (SC-NEC) presided over by the Union Home Secretary and consists of representatives of the other Ministries concerned. The recommendations of the SC-NEC are considered by the High-Level Committee (HLC), presided over by the Union Home Minister, and includes the Union Finance Minister, Union Agriculture Minister, and Vice-Chairman, NITI Aayog as members. Accordingly, the recommendations are either approved or rejected. Approval from HLC paves way for the release of funds from NDRF. Additionally, the financial aid provided under the SDRF and NDRF in the wake of declared natural disasters is offered as a form of relief rather than as compensation for losses incurred or claims made.
However, as per the laid down procedure, the funds are released from NDRF subject to the adjustment of 50% of the balance available in the SDRF account of respective states as on 31 March of the preceding financial year. Hence, in some cases, where sufficient fund is available in SDRF, the net out go from the NDRF was ‘NIL’ against the amount approved by High-Level Committee.
However, this process could at times become cumbersome, making things worse for the victims of the disaster. To remove this, the Government of India, in August 2019, decided that the IMCT would be constituted immediately in the aftermath of any natural calamity of severe nature, even before receipt of the Memorandum from the state.
The state-wise details on assistance sought from NDRF, the assistance approved, and the funds released were provided in response to a question in the Rajya Sabha in December 2021.
Statistics of disaster relief
A recent answer in the parliament from July 2022 provides details of the allocation and release of funds under SDRF and NDRF from 2018-19. Another answer from July 2019 provides data from 2014-15 till 2018-19. A cursory glance at the graph below shows the increasing allocations under SDRF and the centre’s share in the SDRF released. However, the funds released under NDRF see a decline with few exceptions. The reasons for such decline are not clear. The state-wise details on fund releases can be accessed here.
Observations of 15th Finance Commission  on interstate allocations
The quantum of the SDRF and interstate distribution are two of the major concerns on the Finance Commission’s agenda. State governments expressed serious concerns about this since they view the SDRF as the main source of funding for disaster response.
The allotment of funding for disaster management to each state has been decided by successive Finance Commissions using an expenditure-based methodology. The better-off states, which can demonstrate higher expenditures, are likely to benefit from expenditure-based allocation as compared to other states. This disparity resulting from the expenditure-driven mechanism has been noted by some states who have received reduced SDRF funds. Such an approach will only make the inter-state allocation disparity worse if it is continued.
The drawbacks of this strategy have been recognised by many finance commissions, who have stated that they would prefer a system that considers the risk and vulnerability profile of each state. Actually, the 14th Finance Commission had recommended in its report that such a risk and vulnerability assessment be carried out for the whole nation. Considering this, a detailed methodology was chalked out aiming to promote equity and fairness and need-based allocation of funds to states for disaster management.
The revised methodology retains the weight given to state expenditures for disaster management. To determine the final allocation for each state, it also introduces weights for each state’s area, population, and risk profile. A composite score has been created for each state based on these two factors, with hazard having a weightage of 60, and vulnerability 30, out of a composite score of 100. This resulted in an index that ranks states according to their risk scores. Here, vulnerability is calculated based on the population below the poverty line and four major disasters are considered in the Hazards category. The allocation of resources based on state-level disaster risk scores is being attempted for the first time, and it overcomes a critical flaw in the preceding state-level disaster management allocations.
The annual allocations for the states for disaster management for 2021-22 is the same as 2020-21, while from 2022-23, it is set to increase by 5 percentage points every year.
The proposed national allocations for disaster management are as below,
Now, the basic fund for States is called State Disaster Risk Management Fund (SDRMF) which includes both SDRF and SDMF. Out of the state’s allocations, 80 percent is earmarked for SDRF, while 20 percent is for the State Disaster Mitigation fund (SDMF). Similar is the case with National allocations. Within this 80 percent, there would be three sub-allocations namely, Response and Relief (40%), Recovery and Reconstruction (30%) and Preparedness and Capacity Building (10%).
Systems under heavy stress
Disasters are here to stay. The growing threats of climate change, coupled with unplanned development strategies are keeping the system under pressure. This is evident in the increased expenditures of the states toward disaster management.
Some states have gone to the extent of allocating budgetary resources and availing loans from financial institutions for relief and recovery. This impacts the fiscal health of the states. It is therefore important and necessary for the Governments at all levels to identify and mobilize alternative funding mechanisms. Alternatively, State Governments must devolve the responsibility to the urban local bodies, owing to their proximity to the community. They must be made as the nodal agencies for relief and rehabilitation. Such devolution of responsibility brings the mitigation and preparedness strategies closer to society.
Additionally, states must track their disaster spending regularly, and assess its impact on relief, recovery, and sustenance. Without any such assessment, it would be hard to make informed choices for future contingencies.
Way forward
It is quite possible that no amount of money is enough to have to combat a disaster, as the threats of climate change & global warming continue unabated. Every small decision we make today is going to determine how far we tumble down the slope. The only sustainable way for the future is to invest in prevention, mitigation, preparedness, and response strategies. Incorporating technological innovations to support quick relief and rehabilitation measures is a must. As Phil McGraw says, ‘Don’t wait until you’re in a crisis to come up with a crisis plan’, prevention and mitigation is the best way forward.
Featured Image: Disaster relief funds


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Explainer: What Are the Financial & Non-Financial Benefits That Can be Availed by Married Couples?
Sai Krishna Muthyanolla
May 11, 2023
The Supreme Court is hearing a batch of petitions praying for the legalization of same-sex marriages. But why are the petitioners pressing for legal recognition of same-sex marriages? What kind of financial & non-financial benefits are available to married couples from various statutes? Here is an explainer.
India’s Supreme Court is hearing a batch of petitions praying for the legalization of same-sex marriages. The petitioners challenged the constitutionality of the Special Marriage Act,1954 which recognizes marriages only between ‘male’ and ‘female’ persons. The petitioners pray that the non-recognition of same-sex marriage is a violation of the right to equality, freedom of expression and dignity.
As per the latest developments in the case, the Union Government agreed to set up a committee to consider extending legal rights to same-sex marriages without giving legal recognition to same-sex marriage. While the apex court called it a step in a positive direction, the petitioners are insistent on the legality of same-sex marriages.
But why is there so much insistence on legalizing same-sex marriage? What are the benefits associated with legal recognition of marriage? What challenges does it solve?
We break them down for you in this story.
Same-sex marriages- Matter of differing perspectives
Before delving into the benefits of legal recognition of same-sex marriages, let’s briefly understand the differing perspectives involved in this issue. A traditional approach opposes same-sex marriage on the basis that marriage has a fixed definition, and its meaning is deeply rooted in heterosexual procreation. It is a historical and religious institution that dates to the ancient times.
The advocates of same-sex marriage argue that marriage is a social construct and not a historical fact as claimed by the opponents. And as society evolves, the social construct can undergo changes to ensure the benefits are reaped by all its members irrespective of their personal characteristics.
The middle ground approach argues that same-sex persons are excluded by the definitional aspect of marriage and not based on their sexual orientation. They are ineligible because they do not fall under the prescribed definition of marriage. Specific laws can be codified for extending the legal benefits; however, the term ‘marriage’ must be reserved for heterosexual couples only. The Indian Government’s approach seems to be on similar lines, where it has agreed to set up a committee to consider extending legal benefits to same-sex couples.
What benefits were denied due to lack of legal recognition of same-sex marriages?
The absence of legal recognition of same-sex marriage denies certain statutory and non-statutory rights to same-sex couples. On the non-statutory aspect, the absence of legalization means a lack of societal acceptance and validation, and the ability to live together without any prejudices. It also denies them the right to celebrate their relationship in public without being labelled. Between the individuals, it denies them a sense of fulfilment.
On the statutory part, the below chart (not exhaustive) provides the rights denied to same-sex couples. Each statute will be explored in detail.
As seen above, the statutory benefits that are associated with legal recognition of marriage cover both financial and non-financial aspects of life.
Non-financial statutory benefits denied:
In addition to societal sanctity, married couples enjoy robust legal rights that emanate from the legal recognition of marriage. However, same-sex couples are deprived of such rights, recognition, and protection by law. These rights include choices of health decisions, adoption, procreation, and financial benefits such as joint ownership, succession, maintenance, and alimony among others.
A few key non-financial benefits that are denied to same-sex couples are as below.
Financial benefits that are available for married couples:
In matters of finance, marriage does alter situations. In addition to the emotional and social significance, marriage also has financial implications for the couple. Right from jointly owning property to filing taxes to compensatory benefits, the rules are different—and more favourable.
In addition to the statutory financial benefits, married couples also get certain concessions aimed at empowering women.
Further, below is a snapshot of the financial benefits available to married couples in India.
Considering the above statutory and non-statutory benefits available to legally married couples, it is understandable that the petitioners are insisting on the legal recognition of same-sex marriages.
Featured Image: Legalization of same-sex marriages


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Explainer: What are the important provisions of the ‘Model Tenancy Act 2021’?
Sai Krishna Muthyanolla
June 21, 2021
Rental housing is an unregulated area and the terms of various aspects related to renting vary from place to place. To bring uniformity in these aspects, the Union Government has come up with a ‘Model Tenancy Act’, which the cabinet recently approved. It is up to the states to enact legislation in line with the model act. Here is an explainer on the provisions of the model act.
On 02 June 2021, the Union Cabinet approved the ‘Model Tenancy Act, 2021’ for circulation to all States and Union Territories for adaptation by way of enacting fresh legislation or by suitably amending the existing rental laws. According to the Union Government’s press release, the Act will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth. The press release added that the ‘Model Tenancy Act’ aims at creating a vibrant, sustainable, and inclusive rental housing market in the country.  It is supposed to enable the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness. Further, it is expected to institutionalize rental housing by gradually shifting it towards the formal market and establishing a Rent Authority. We look at the model act in detail in this story.
Draft Model Tenancy Act was released in 2019
In her maiden budget speech in 2019, Finance Minister Nirmala Sitharaman announced that several reform measures would be taken up to promote rental housing as the current rental laws were archaic and did not address the relationship between the Lessor and the Lessee realistically and fairly. She announced that a Model Tenancy Law would be finalized and circulated to the States. The draft Model Tenancy Act 2019 was released.
According to Census 2011, there were about 24.67 million vacant houses of which around 11.09 million houses were in Urban parts of India. That is, over 1.1 crore houses were vacant in Urban areas and so, making these houses available for rent would complement the vision of ‘Housing for All’ by 2022.  While the latest numbers are not available, a significant number of houses may still be vacant, especially in the urban areas.
What are the objectives of the Act?
The Model Tenancy Act, 2021 stipulates the following objectives-
The act which streamlines the process of renting a property in the country would be applicable prospectively and does not affect the existing tenancies. The States are advised to draw upon the model act and pass their own tenancy acts.
The Model Act talks about establishment of Rent Court and Rent Tribunal
The Act defines the landlord also known as landowner or lessor as –
The tenant or lessee is described as:
Rent authority has been defined as the officer appointed by the District Collector (DC) or District Magistrate (DM) with the approval of the respective State government or UT Administration. Likewise, an Additional Collector or Additional District Magistrate or an officer of equivalent rank appointed is to be appointed as Rent Court. District Judge or Additional District Judge may be appointed by the State government/UT Administration as Rent Tribunal in each district. Both, the Rent Court and the Rent Tribunal are bestowed with the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 for discharging their functions.
Rent agreement is mandatory
The ‘Model Tenancy Act’ stipulates that a written agreement is mandatory between the landlord and the tenant for all new tenancies. The execution of the agreement must be informed to the concerned district ‘Rent Authority’ by the landlord and tenant jointly within two months from the date of the agreement. Following receipt of information, the Rent Authority will provide a unique identification number to the parties and upload details of the agreement in the local vernacular language or state/UT’s language within one week.
Tenure may be extended in event of force majeure
The tenure of tenancy is as specified in the agreement. In case, the tenant fails to vacate the property despite the end of tenancy, they are liable to pay twice the monthly rent for the first two months and four times the monthly rent thereafter until the tenant occupies the property. In case of calamities, or a situation of war, then the landlord shall allow the tenant to continue in possession of the said premises till a period of one month from the date of ceasing of the disastrous event on the same terms and conditions of the tenancy agreement already entered into. However, the list of force majeure events mentioned does not include pandemics or does not link the agreement to a notified disaster as in the case of COVID-19.
Rent authority shall address disputes regarding rent revision
The rent and its revision should be in accordance with the agreement. However, if the landlord has incurred expenditure for carrying out improvement, addition, or structural alteration in the premises occupied by the tenant, then the landlord can increase the rent by an amount as agreed to between the landlord and the tenant. If there are disputes with respect to the revision of rent, the Rent Authority may decide on the revised rent.
The Act puts a ceiling on security deposit
The security deposit to be paid by the tenant in advance should not exceed two months’ rent for residential premises. For non-residential premises, it can go up to six months’ rent. The security deposit should be refunded to the tenant by the landlord on the day of possession of vacant premises from the tenant, after deducting any liability of the tenant. This might bring in uniformity since the security deposit currency varies from 2 months in some cities/states to 12 months in some other cities.
Responsibilities of landlord and tenant have been clearly defined
Both the landlord and the tenant are equally responsible to keep the premises in a good condition. The responsibilities of the landlord in addition to those mentioned in the agreement are as follows;
Similarly, responsibilities of tenant are-
Repair work may be undertaken by tenant or landlord
If the tenant fails to do the repairs, then the landlord can do the work and deduct the appropriate amount from the security deposit. The deducted amount is to be paid by the tenant within a month. If the cost exceeds the deposit amount, then the tenant is to pay the excess cost also within a month. If the landlord refuses to carry out the work, then the tenant can do the work and deduct the amount from the monthly rent. However, the deduction for each month should not exceed 50% of the agreed rent.
24-hour prior information is compulsory for landlord to enter premises
The landowner or in-charge should enter a premise only after informing the tenant at least 24 hours in advance. They should not enter the premises post-sunset and prior to sunrise. No landlord or property manager can withhold any essential supply to the premises occupied by the tenant.
Tenant may be given eviction order by Rent Court
The tenant cannot be evicted from the premises while the agreement is continuing unless there is a written agreement. However, if the tenant does not pay the rent, or has left the premises without informing the landlord, or has continued to occupy despite the landlord’s notice to vacate, or if the landlord must demolish or alter premises, and in other similar situations, the Rent Court may make an eviction order upon the landlord’s request. If a person is aggrieved by the Rent Court’s decision, they may file an appeal with the Rent Tribunal. Cases should be disposed of within 60 days.
In the case of a tenant wishing to vacate the rented premises, a minimum of one month’s notice to the landlord is mandatory. This is applicable only in cases where such a notice period is not stipulated in the rental agreement.
Execution of the Act is left to States and UTs
The legislation attempts to balance the interests of both tenants and landlords in an accountable and transparent manner. The Act addresses the issues of landlords and tenants by establishing a separate authority which will help reduce the burden on civil courts. Moreover, it will also help in the faster resolution of disputes. The ceiling on the security deposit is also a right move since deposits vary from state to state and in some cases place a huge burden on the tenants. The tenant’s privacy is also ensured by restricting the entry of the landlord.
However, the act is not clear on the penal provisions in case the details of the agreement are not informed to the relevant authorities. It may also place a huge regulatory burden on both landlords and tenants in low-rent housing, markets, and those who are not digitally conversant. Mandatory digitalization of the rental agreement may affect equitable access.
While the government has aimed to reduce homelessness and enhance private participation in rental housing, the execution of the Act is left to the states and UTs. Just like in the case of the RERA Act, the act cannot be imposed on states and UTs as land is a state subject and it is up to the states to enact legislation on the lines of the model act.
Featured Image: Model Tenancy Act


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Explainer: What are the new ‘Direct Selling Rules’ about?
Sai Krishna Muthyanolla
January 8, 2022
The government recently notified the Consumer Protection (Direct Selling) Rules, 2021 to regulate the direct selling industry. The rules are also aimed at clearly prohibiting pyramid and money circulation schemes and providing a framework for consumer protection. Here is an explainer.
The Department of Consumers Affairs recently on 28 December 2021, notified the Consumer Protection (Direct Selling) Rules, 2021. These rules specify the compliance requirements for direct selling agents.
As per the definition provided in the Consumer Protection Act, 2019, Direct selling means
“Marketing, distribution and sale of goods or provision of services through a network of sellers, other than through permanent retail location.” Direct selling is one of the approaches for the promotion and sale of goods & services.
The new rules bring in regulation to hitherto largely unregulated market
This segment has largely remained unregulated in India, and the current rules are aimed at bringing in some form of regulation.  With the lack of a specific regulation related to direct selling, direct sellers used to be covered under – The Prize Chits and Money Circulation (Schemes), Banning Act, 1978.
However, there were instances of direct sellers being wrongly booked under this act, even though they complied with all the other relevant regulations required to do business in India.
In 2016, the Department of Consumer Affairs has issued “ Model Guidelines on Direct Selling”  as an advisory to State Governments & UTs regarding Direct selling.
This advisory included broad guidelines to the States, with the respective states required to come up with their own regulation. With the Consumer Protection and Direct Selling Rules, 2021 in place, there is going to be uniform regulation of Direct selling across the country.
The rules explicitly prohibit any form of Pyramid schemes under the guise of Direct selling
The Consumer Protection & Direct Selling Rules, 2021 state that these Rules are applicable to all the goods & services that are bought or sold through direct selling, to all models of direct selling, to all direct selling entities offering goods & services in India, etc.
Thus, these rules are applicable to all one-to-one sales, multi-level marketing, etc. However, Pyramid schemes are strictly prohibited. In its definition of the direct selling entity, the Rules explicitly state that it does not include an entity that is engaged in a Pyramid scheme or Money circulation scheme.
The Rules also clearly define a Pyramid scheme as one that has a multi-layered network of subscribers who are involved in enrolling more subscribers to receive any benefit, either directly or indirectly.
While clearly stating that Pyramid schemes do not fall under the legal framework of Direct selling, the definition of “Direct seller” also excludes a few other entities.
Direct Selling entities to ensure compliance with the Rules within 90 Days
The Consumer Protection and Direct Selling Rules, 2021 lay down the compliance framework to be undertaken by all the entities which fall under the definition of a Direct seller.
A few of the important rules for the Direct selling entities include:
All the entities that fall within the definition of Direct seller are to ensure compliance with these rules within 90 days.
The new rules also lay down obligations to be met by the Directs sellers:
One of the important aspects of the Rules is that the direct selling companies are liable for the grievances arising out of the sale of goods or services by their direct sellers.
Direct selling entities and direct sellers using e-commerce platforms for sale also need to be compliant with The Consumer Protection (Direct Selling) Rules, 2021.
These rules also require the State governments to set up a mechanism to monitor the activities of direct sellers and direct selling entities.
Direct selling rules issued recently have an international precedent
While India has recently brought about the legal framework for Direct selling, many other leading countries already have laws in place.
USA
USA’s Federal Trade Commission (FTC), highlights that MLM activities are unlawful and violate FTC Act. The FTC act lays down the regulations regarding methods and practices of entities engaged in commerce.
Singapore
Multi-Level Marketing and Pyramid Selling (Prohibition) Act, explicitly excludes certain schemes and arrangements which are MLM or Pyramid schemes. The act is intended to protect consumers and promote conducive environment for legitimate businesses.
The Consumer Protection (Fair Trading) Act, 2003, provides the legislative framework to allow consumers aggrieved by unfair practices and the civil remedies.
United Kingdom
The Direct Selling Authority in UK oversees the various aspects related to Direct selling, both from the perspective of Direct sellers and costumers.
Few of the important laws related to Direct selling and protection of consumer rights regarding direct selling include  – The Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1987 & its amendment in 1988,  and  The Doorstep Selling Regulations.
Most of these legislations make a clear demarcation of what constitutes direct selling and what are MLM or Pyramid schemes which are not part of the legal framework. Customer redressal mechanism is also a key component of the law in place for many of these countries.
As per a factsheet of ‘World Federation of Direct Sales Association (WFDSA) ‘,  Direct selling is a $179.3 billion industry worldwide and encompasses 125.4 million independent representatives, as of 2020. United States, China, Germany, South Korea, and Japan are the top-5 markets for Direct sales.
The size of Indian market for direct sales is around $ 3.2 billion. With an expanding consumer based and direct selling platforms, the new regulation by the government is an important step to ensure customer safety and lay down a legal framework for better enforcement.
Featured Image: Direct Selling Rules

created: January 8, 2022


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What are ‘RBI Guidelines for Fair Practice Code for the Lenders?
Sai Krishna Muthyanolla
May 14, 2020
The RBI has issued guidelines for fair practice code for lenders aimed at protecting the interests of the borrowers. These guidelines are applicable to both banks and financial institutions. Here is a detailed explainer of these guidelines.
Extending loans is the major business activity of Banks & NBFCs. The competition pushes these lending institutions to adopt different means to attract the borrowers. In this process there could be instances where the Banks or other financial institutions are opaque or resort to practices that may give them undue advantage and can infringe on the benefits of the burrower.
In order to curtail such practices and protect the rights of the burrower, the RBI has something known as the ‘Guidelines for Fair Practice Code for the lenders’, which these lending institutions need to follow.
RBI guidelines for lenders aimed at safeguarding the interest of the borrowers
RBI first issued these ‘Guidelines on Fair Practice Code for Lenders’ on 05 May 2003. These guidelines are applicable for all the Scheduled Commercial Banks and all the Financial Institutions in India.
The guidelines issued by RBI are categorized under five heads covering different aspects of loan lending process.
RBI revised these guidelines multiple times
RBI has from time to time conducted a review of the implementation and practice of these guidelines and have suggested revisions. Here is a look at the various revisions to the guidelines that were advised by RBI.
Date
Revisions Advised
06 March 2007
The advice to develop comprehensive loan application form to include all the details, is now extended to all types of loans irrespective of the amount of loan. (Earlier it was less than Rs.2 lakhs).
22 August 2007
In the initial guidelines, it was advised that any Terms & Conditions or Caveats negotiated between the lender and the borrower needs to be written down and a certified copy with the authorized signatory needs to be provided to the borrower along with loan documents. Few banks used to do it based on the request.
25 November 2008
RBI has asked banks disclose the information of all the fees and charges that are levied on the customers. RBI has noticed instances where in there were certain additional charges by the Banks & Financial Institutions which were not disclosed earlier.
12 November 2010
This revision was issued as a continuation of the earlier one passed in 2008 regarding the disclosure of all the fees and charges in a transparent manner.
22 January 2015
Through this circular, RBI has reiterated the transparency in provision of information. For this it advised banks to do the following.
–          Banks are required to provide a Key Statement/Fact Sheet to all individual borrowers at every stage of loan processing. A standard format is prescribed for this.
Fair Practice Code developed by Individual Banks based on RBI’s guidelines
RBI has advised the below actions for all the banks and financial institutions to be implemented after these guidelines were issued.
Accordingly, most of the Banks and Financial institutions have developed their own Fair Practice Code for lenders. This code is put up and can be seen on the websites of the respective banks.
For e.g., the Fair Lending Practices Code (FLPC) of State Bank of India, covers fair practices followed regarding– Product Information, Interest Rates and their revision, Bank Charges, T&C of lending, Accounting practices, Information Security etc.  It also developed a Grievance Redressal Mechanism.
Similar Fair Practices Codes can be found for other major banks like Axis Bank, ICICI, Canara Bank etc. along with Financial Institutions like HDFC Credila, Avanse, DHFL etc.
RBI took action on banks & financial institutions who violated this code
The guidelines issued by the RBI and the Fair Practice Codes developed by the Banks is to ensure that the interests of borrowers are protected. There have been instances where the RBI has dealt severely with those who violated the fair practices code.
Recently, in the year 2019, Bajaj Finance Pvt Ltd has been slapped with a fine of Rs.1 crore for violating Fair Practices Code.
In an earlier instance, RBI imposed a fine of Rs. 20 lakhs on Shriram City Union Finance Ltd, for violation of Fair Practices Code. In RBI’s scrutiny, various contraventions were observed which violated RBI guidelines.
On the same day, RBI has charged Hinduja Leyland Finance Ltd with a fine of Rs. 5 lakhs, since it was observed that charging of interest and its communication to the customers was not done in a transparent manner, which is against the Fair Practices Code.
Featured Image: RBI Guidelines for Fair Practice Code


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Explainer: What are the rights of the Customer under the RERA act?
Sai Krishna Muthyanolla
January 4, 2021
The construction sector contributes nearly 8% to the national GDP. The real estate which is the mainstay of this sector is now effectively regulated under the Real Estate (Regulation And Development) Act. The act ensured the establishment of RERAs in every state. Here is an explainer about the rights of the Customers under this act.
The construction sector of which real estate is the mainstay is a major contributor to the economy. The sector contributes about 8% to the country’s GDP.  The sector plays an important role in meeting the ever-increasing need and demand for housing and infrastructure in the country which is the 2 most populous.
Over the past few decades, the sector has witnessed significant growth. At the same time, there was little transparency in how it operated. Lack of effective regulation also meant that the customers did not have access to a formal & faster grievance redress mechanism. In order to bring about accountability, transparency, efficiency, and also to establish an adjudicating mechanism for speedy dispute & grievance redressal, the Government of India passed the Real Estate (Regulation And Development) Act, 2016 which is more popularly known as RERA Act.
RERA Act was passed in 2016 to reform & regulate the real estate sector
RERA Act was passed in 2016 and some of its provisions came into effect the same year. All sections of the Act were implemented from 2017. The Act brought with it several reforms in the sector while addressing the concerns of builders, homebuyers, agents/brokers, and other stakeholders in the industry. The Act is currently being implemented in 26 States/UTs.
Real estate properties above 500 square metres should be registered with RERA
A Real Estate Regulatory Authority (RERA) has been established under this Act in each state in order to regulate the sector and act as a body for speedy grievance redressal. The Act mandates the registration of all real estate projects where the area of land is above 500 square metres, or eight apartments. Promoters or the builder/developer must register with RERA along with necessary documents such as sanctioned plan, project details, approvals, and certificates of the project, etc. The application must be approved or rejected by RERA within a period of 30 days from the date of application. Upon registration, the promoter is given a registration number, login ID, and password for filling up necessary details in the respective state’s RERA website. Failure to register will invite a fine amounting to 10% of project cost and 3 years imprisonment. Even real estate agents or brokers who are involved in the sale of the property must register themselves with RERA.
The act lists out rights of Homebuyers & Customers
With respect to customers or homebuyers, the act grants the following rights;
Aggrieved persons can file complaint against promoters and agents under RERA
Every state government was to establish the RERA within a year of implementation of the Act. Any aggrieved person who finds that the provisions of the Act are being violated or contravened, they can file a complaint against the promoter or agent, with the RERA in his/her state. The URL of the RERA websites in different states is available here. An aggrieved person, in this case, includes the association of allottees or any voluntary consumer association registered under any law. The complaint has to be disposed within a period of sixty days by the respective RERA.
For instance, on Maharashtra’s RERA website, one may create a new account as a complainant and file the complaint by filling in the necessary details and uploading the required documents. The website also has a detailed user manual for the complainants that provides the step by step process to be followed. The websites also have provisions for fee payment. The fee for filing a complaint is different for different states. For instance, the fee is Rs. 5000 in Maharashtra and Rs. 1000 in Karnataka.
Similarly, Karnataka’ RERA also has a well-maintained website with a user manual for complaint registration.
Tribunals have also been established
Furthermore, the state governments are to establish Real Estate Appellate Tribunal with one or more benches of the same consisting of a judicial member and an administrative or technical member. An aggrieved person who is not satisfied with the decision of the RERA can file an appeal with the tribunal where the issue has to be redressed within 60 days. If the promoter is approaching the Tribunal, their case will be entertained only upon depositing an amount of at least 30% of the penalty or more, as determined by the authority.
RERA has brought about standardization in the sector
The RERA Act was enacted to ensure greater transparency & accountability in the real estate sector and to protect the interests of the customers and other stakeholders. The act has ensured standardization, availability of information to the customer, adherence to due dates, etc. It has also ensured that customers have access to an easy to access grievance redressal mechanism.
We would discuss some of the important rulings of the various state RERAs in the subsequent stories.
Featured Image: Rights of Customer under RERA act

created: January 4, 2021