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Daily Current Affairs 27.09.2021 (These investigations are a face without a heart, ect Focus on information, action)

Daily Current Affairs 27.09.2021 (These investigations are a face without a heart, ect Focus on information, action)

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1.These investigations are a face without a heart

There is no longer any respect for the citizen’s rights but only a single-minded assertion of unaccountable authority

Gasping for breath — that is how our investigating agencies leave our citizens and now the press. Two recent cases clearly demonstrate that our investigating agencies are a face without a heart.

On September 10, 2021, officers of the Income-Tax Department visited the premises of NewsClick and Newslaundry. According to the Editors Guild of India, NewsClick and Newslaundry are news websites. The visit by the officers was styled as a survey and this was confirmed by the Department to a private news channel. A survey by officers of the IT-Department is governed by Section 133A of the Income-Tax Act.

Entry that is limited, specific

Section 133A authorises an income-tax authority to enter premises where a business or profession is carried on. The purpose of entry is limited and specific — to inspect books of account or documents, check or verify the cash, stock or other valuable article or thing which may be found in the premises and furnish such information that the authority may require. A survey is not a fishing expedition. A survey can be carried out only during the time the premises are open for conduct of business or profession.

A statement released by Newslaundry indicates that the officers came to its premises at about 12:15 p.m. and left the next day at 12:40 a.m. Similarly, a statement released by NewsClick suggests that the officers came at about noon and left around midnight. The first question: are the premises of these news websites usually open for business at midnight with the same staff? If not, the officers violated the law in continuing the survey till the witching hour, without any compunction.

Some side issues also arise. For example, what do the officers do for lunch, dinner and snacks when a survey takes place for 12 hours? Do they carry their tiffin boxes and water bottles? What about the people in the premises — can they go out for a bite or are they expected to remain hungry? Can they even inform their family that they have been locked up for several hours and cannot come home?

Section 133A authorises the officers to inspect the books of account, place identification marks on them, and on other documents, and even make copies. They may impound the books of account or other documents inspected by them, for reasons to be recorded in writing. They are also entitled to make an inventory of the cash, stock or other valuable articles verified by the officers. Finally, they are authorised to record the statement of any person in the surveyed premises, though not on oath.

Court’s view

The Orissa High Court has taken the view that the primary objective of a survey is to inspect and if impounding is necessary, specific reasons (not general reasons) must be recorded; the reasons must be recorded at the time of impounding and not even a day later, otherwise the impounding would be bad in law.

Section 133A contains a specific prohibition that the officers “shall, on no account, remove or cause to be removed from the place… any cash, stock or other valuable article or thing”. How much more prohibitory can it get?

The legal Lakshman rekha having been delineated, what is it that transpired during the survey on September 10, 2021? The version of the I-T Department is not in the public domain, so it is not known, and perhaps might never be known.

The two cases

In its statement, Newslaundry informs us that its CEO was not allowed to use his phone to contact his lawyer. In fact, he was asked to hand over his phone to the officers. He was asked to comply with on-the-spot directions without taking legal advice. Even a criminal is entitled to contact his or her lawyer and family. Second question: Under what authority of law was the CEO asked to hand over his phone and refrain from contacting his lawyer? Books of account may be impounded, but prohibiting use of a mobile phone, even temporarily?

The personal mobile phone, laptop and office machines (presumably desktops) were taken control of and the data on them or in them was downloaded. Ordinarily, a search warrant is required for this. Apart from anything else, this is a classic case of invasion of the fundamental right of privacy. The CEO was not given a copy of the downloaded data, which is his property and he is entitled to it as of right. On the contrary, he was asked to delete his personal data from his mobile phone within one hour so that they could take it away (which they did). Third question: Why should he delete his personal data?

The I-T Department has accepted before the Delhi High Court that it has “seized” material (including perhaps his mobile phone and laptop) and it is in safe custody. Under which law is not explained. Fourth question: Are officers of the I-T Department entitled to violate the law with impunity and without any accountability?

The sequence of events clearly suggests that the staff of Newslaundry was subjected to some sort of a house arrest or office arrest, cut off from the world for 12 hours and denied their constitutionally guaranteed fundamental rights. Is this permissible?

The fate suffered by NewsClick is no better. NewsClick issued a statement to the effect that 30 employees and support staff were ‘locked up’ (so to speak) for the duration of the survey, that is for 12 hours and their phones seized. If any family member had faced an emergency during those 12 hours, bad luck. To make matters worse, they were prevented from accessing their computers and indeed from working. Why? And under which law? It seems quite clear that the employees and staff underwent office arrest, something akin to house arrest. Fifth question: are the fundamental rights of speech, freedom of the press and privacy suspended during a survey of books of account by the I-T Department? Surely, our fundamental rights are not that meaningless.

The phone of the Editor-in-Chief was also impounded containing private, personal and confidential data. It appears that the fundamental right to privacy is stillborn in respect of some people, particularly journalists. He may have received information from a source that he does not desire to disclose. In law, he cannot be compelled to disclose the source, being privileged information, but a well-planned survey can achieve that purpose. Journalists beware or don’t care – the choice is yours.

Loose papers were taken away from the surveyed premises. It appears that no list was prepared of these papers and no copy of the loose papers supplied to the employees concerned. E-mail dumps were taken of the Editor-in-Chief and the Editor. Sixth question: was the survey a façade for some other purpose? Nobody will know until the next ‘raid’.

More the norm now

So many questions arise from these two surveys and they provide obvious answers, but nobody cares. The issue is not what Newslaundry and NewsClick have done or not done, in terms of adhering to and complying with the law. The issue is whether there is a rule of law prevailing and how easy it is for the authorities to harass citizens if they want to. The other issue is that government officers can get away with just about any abuse of their powers, including unlawful house or office arrest, and this is becoming the norm rather than the exception. There is no longer any respect for the citizen’s rights, including journalists; only a single-minded assertion of unaccountable authority.

One last question. Are the authorities accountable for their actions at any point, or should journalists resign themselves to defenselessly watch the erosion of their rights? Harassed journalists and vulnerable targets may seek the path of least resistance. After all, they have families to feed. They did not set out to be test cases for democratic resilience. Constitutional offices, on the other hand, have a duty to not look away. Have officers forgotten that citizens of India, journalists included, deserve humane treatment under the law or is it that they do not have a heart?

2.Avalanche effect Focus on information, action

Investors must sift from the info avalanche to home in on the right decision

We all have our personal finance and investments to manage, and with that at the back of our mind, we take in information that is relevant for our purposes, or we think is relevant.

Especially in today’s age, we receive a plethora of information. It comes through newspapers, television channels ‘breaking news,’ various apps on our mobile phones, social media, people we meet or talk to and the like. The fast pace of and multifarious sources of information available to us is a benefit bestowed by technology.

When a filter is key

However, the overdose also means that we have to apply a filter somewhere. Applying a filter does not mean we have to close ourselves to the benefit that technology is bringing to us; we have to keep our eyes and ears open. But, there is a limit to which we can retain data, process it and apply it usefully. Unless you are a fund manager, analyst or other professional associated with finance or investments, you have limited time and energy bandwidth for data relevant for your investments.

You have to decide which data points are relevant for you, and hence declutter your mind space. Data becomes useful information only when you put it to productive use. To make sense of the various financial data hitting us, let us bucket these into categories.

One is information that comes every day e.g. Nifty and Sensex movement, 10-year government security yields and oil price movement. Next, events that happen from time to time in the market, economy, governments and corporates. Then, there are views and opinions voiced by experts and sometimes, non-experts, in media. The other bucket of data is where you get to receive deeper or analytical pieces of information, such as company balance sheets, corporate earnings growth and the government’s fiscal situation. The other aspect to consider for bucketing data into relevant and not-so-relevant is your set of goals.

Assuming you are not a finance professional, it all comes down to (a) whether you are doing the analysis yourself (DIY) or have given it to a professional fund manager such as a mutual fund or PMS (b) whether you are taking inputs from a professional adviser (c) how much time and bandwidth you have for tracking and analysing the data and (d) to what extent or depth you want to analyse.

If your funds are managed by a professional or if you are or advised by one, you need to track only the broad developments just to be aware which way the economy and market is going and you are in a position to understand the background of the advice and ask the right questions of your adviser.

Next come data points. There are events that happen from time to time. These are not in your control; what is, is your portfolio. While you absorb all the news, your perspective should be whether it is so significant to warrant a change in your investments or does it serve as another point of awareness. It is not about the ‘headline’ which is designed to make it sound earth shattering, but about the real import.

Relevance to context

As an illustration of the data and discussion points mentioned above, till March 2020, the fashionable point of discussion was economic slowdown. In a simple and real sense, economic slowdown refers to the economy slowing down. Even then, GDP growth rate was positive, only that the growth rate was slower than earlier. In the quarter ended June 2020, GDP actually contracted significantly i.e. it was a slowdown in the real sense. It was not slower growth, it was a shrinkage of the actual economy. However, between April and June 2020, too few discussed the slowdown as the experts changed their priority to the medical emergency and how to manage the pandemic better.

Even if you had soaked in the intellectualisation of the ‘slowdown’ till March 2020, apart from engaging discussions and viewpoints, how did it impact your investment portfolio?

There would have been impact, but as an action point on your part, it would have been limited to minor tweaks in the portfolio. If your money is with mutual funds, or you are taking inputs from a professional adviser, they would be doing the tweaks anyway, based on their reading of the situation.

Net-net, when you come across the multiple data points, events and opinions, initially approach it with an open mind, but then apply filters. The first filter is, whether it is relevant or not. If not, do not burden your head with it. That is noise.

If relevant, question whether it only raises awareness or helps raise queries to your adviser. This is useful information. If there is some truly significant development, it may impact your investment portfolio and may be a call to action.

However, such developments do not occur so frequently that you have to tweak your portfolio every day. Your investments are for the long term and some event or the other will happen every day. For your daily purposes, you have to choose data points that will populate your indicator panel. While driving, you can only focus on so much and you change course when the event is a key one.

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