Electoral Trusts – A Mechanism for Political Funding

Why in News?

During 2024–25, nine electoral trusts collectively contributed Rs.3,811 crore to political parties, nearly three times higher than in 2023–24, following the abolition of electoral bond scheme by the SC.

What are Electoral Trusts?

• Electoral Trusts  – These are non-profit companies Introduced in 2013 and set up under Section 8 of the Companies Act, 2013.
• Purpose – They provide a transparent channel for political funding, ensuring that donations are routed legally and disclosed to the Election Commission of India (ECI).
• Governed by – Electoral Trusts Scheme, 2013, The Companies Act, 1956, and the Income Tax Act, 1961.
• Monitored by – Central Board of Direct Taxes (CBDT) and the Election Commission of India (ECI).
• Qualification – Any company registered under Section 8 of the Companies Act, 2013 can form an electoral trust.
• Eligibility to donate – Under Section 17CA of the Income-tax Act, 1961
  • Any citizen of India,
  • A company registered in India, or
  • A firm or Hindu Undivided Family or
  • Association of persons living in India, can donate to an electoral trust.
• Ineligible donors – It shall not accept contributions from -
  • An individual who is not a citizen of India
  • A foreign entity whether incorporated or not
  • Other Electoral Trusts (approved under the Electoral Trusts Scheme)
  • Contributors without PAN
  • NRIs without a passport number.

What are the other sources of funding for political parties in India?

• Cash Donations – Limited to Rs.2,000 (down from Rs.20,000), requiring digital/cheque payments above this.
• Known Sources – Membership fees, sale of publications, bank interest, asset sales.
• Unknown Sources – A significant portion (around 66% in 2021-22 for national parties) remains untraceable, raising transparency issues.
• Electoral Bonds (Scrapped) – A controversial instrument for anonymous donations, largely from corporates, often linked to government contractors.

Association for Democratic Reforms (ADR) vs. Union of India, 2024 - the SC has unanimously struck down the Electoral Bond Scheme, declaring it unconstitutional, it violates right to information under Article 19(1)(a).

To know about Electoral Bond, click here

What are the functioning mechanism of the electoral trusts?

• Renewal – Electoral trusts must apply for renewal every 3 financial years.
• Mandatory Donation Requirement – They must donate 95% of contributions received in a financial year to political parties registered under the Representation of the People Act, 1951.
• Contributor Identification – The contributors’ PAN (in case of a resident) or passport number (in case of an NRI) is required at the time of making contributions.
• Transparency in Funding – The electoral trusts route ensures disclosure of both contributors and beneficiaries, making the process more transparent.
• Modes of Payment – Trusts can receive contributions, that are made via cheques, bank drafts, or electronic transfers. Donors are required to disclose their Permanent Account Number (PAN).
• Utilization of Funds – At least 95% of collected funds must be disbursed to registered political parties, with the remaining 5% administrative expenses.
• Restrictions on Use – Trusts cannot use donations for the benefit of their members.
• Accountability & Reporting – Trusts must maintain audited accounts, disclosing donors, recipients, and disbursements to the Central Board of Direct Taxes (CBDT) and the Election Commission of India (ECI).

What is the difference between electoral bonds and electoral trusts?  

What are the benefits of electoral trusts?

• Transparency – Trusts must file annual reports with the ECI and CBDT, showing donors and recipient parties.
• Tax Benefits – Donations to registered trusts get 100% tax deduction for individuals and companies.
• Accountability – Trusts must keep audited accounts and submit regular reports on funds.
• No Foreign Funding – Contributions from foreign entities, government departments, or non-citizens are prohibited.
• Corporate Framework – Trusts give companies a legal, structured way to donate in line with governance norms.

What are the concerns associated with electoral trusts?

• Transparency Issues – Although trusts are supposed to disclose donor and recipient details, the reports are filed with the CBDT and ECI, but not easily available to citizens.
• Corporate Dominance – A few big corporate trusts dominate funding, mostly favoring ruling parties.
• Concentration of Funding – Only a handful of trusts are active, with three accounting for almost all donations.
• Nexus between Corporates & Parties – Trusts act as intermediaries for corporates and parties,  making parties dependent on corporate money and weakening fair competition.
• Lack of Public Accountability – Citizens face difficulty in verifying the sources of party funding, creating a significant democratic deficit.

What steps should be taken next?

• Transparency – Trusts should disclose their rules and allocation criteria to ensure transparency.
• Cap on Corporate Donations – Corporate donations must be capped to prevent concentration of political power, following models like Germany.
• Expand Public Funding – Public funding should be expanded to reduce dependence on corporate money and ensure fair competition.
• Regulatory Oversight – Oversight must be active and strict, challenging practices that entrench corporate dominance.

References

1. Indian Express | Corporate trust donations to parties tripled
2. Indian Express | Electoral Trust
3. ADR | Rise of the Electoral Trusts scheme contributions

Consumer Rights – Ensuring Efficient and Speedy Disposal

Why in News?

National Consumer Day is observed in India on 24 December to highlight the significance of consumer rights and the broader framework of consumer protection.

How have consumer laws in India evolved over time?

• Ancient India – Dharmasastra and Arthashastra emphasized fair trade, honest weights, and accountability of merchants. Ethical trade was seen as a moral duty.
• Medieval Period – Guilds and local regulations ensured quality standards and punished fraudulent practices.
• British Rule – The Consumer protection began to take legal shape through laws like:
  • Indian Contract Act (1872) defined rights and obligations in trade.
  • Sale of Goods Act (1930) focused on product quality and buyer rights.
  • Drugs and Cosmetics Act (1940) regulated safety in pharmaceuticals.
• Post-Independence Foundations – The Consumer protection initially tied to rationing, subsidies, and price controls.
  • Its focus was on basic needs and preventing exploitation in
  • Essential commodities (Essential Commodities Act (1955),
  • Food adulteration (Prevention of Food Adulteration Act (1954),
  • Controlled monopolistic trade practices, etc.
• Consumer Protection Act, 1986 – It recognized consumer rights and marked a shift from welfare dependency to rights recognition.
• It defined consumer rights - safety, information, choice, redressal, and education.
• Introduced 3-tier redressal system –
• District Consumer Disputes Redressal Forum – Involving claims up to Rs. 50 lakhs.
• State Consumer Disputes Redressal Commission – exceeding Rs. 50 lakhs and up to Rs. 2 crore.
• National Consumer Disputes Redressal Commission (NCDRC) – Apex body, involving complaints above Rs. 2 crore.

In July 2025, 10 States, along with the NCDRC recorded a disposal rate of more than 100% (more cases were resolved than newly filed during the month).

• Judicial Contributions – The Courts expanded consumer rights through progressive judgments and recognized consumer protection as part of Article 21 (Right to Life) in some cases.
• Consumer Protection Act, 2019 – Modernized framework to address digital economy:
  • Covers e-commerce transactions.
  • Introduced Central Consumer Protection Authority (CCPA).
  • Stricter penalties for misleading ads and unfair trade practices.
  • Product liability provisions holding manufacturers accountable.
• CCPA Functions – It is mandated to recall unsafe goods, penalize misleading ads, regulate endorsers and issue guidelines against dark patterns (false urgency, drip pricing, disguised ads).
• Digital Personal Data Protection Act, 2023 – It focused on data privacy, consent, and accountability in digital transactions.

National Consumer Day, 2025 carries the theme “Efficient and Speedy Disposal through Digital Justice”, which underscores India’s transition from traditional welfare-oriented consumer protection to a digital-first framework, driven by platforms such as e‑Jagriti and the upgraded National Consumer Helpline 2.0.

What are the measures taken by the Government to protect the Consumer rights?

• e-Jagriti (launched Jan 2025) – It is a digital platform for consumer grievance redressal, integrates earlier systems, including OCMS, e-Daakhil, NCDRC CMS, CONFONET into a single, streamlined interface.
• Achievements – 1.35 lakh filings, 1.31 lakh disposals, disposal rates >100% in several states.
• National Consumer Helpline 2.0 – The Department of Consumer Affairs has upgraded the National Consumer Helpline (NCH) with the introduction of AI-enabled NCH 2.0.
• It now resolves over 12 lakh complaints annually, with many being addressed within 21 days; refunds worth Rs.27.61 crore facilitated Apr–Oct 2025.
• Jago Grahak Jago App & Dashboard – It is the advanced digital tools to safeguard consumers from deceptive online practices, which detects dark patterns in e-commerce.
• Consumer Welfare Fund – It aims to support initiatives that protect consumer interests and strengthen the consumer movement across the nation.
• Consumer Welfare Corpus Fund - States/UTs establish a Consumer Welfare Corpus Fund
• Contribution Ratios – 75:25 → Central Government : State Government (general states) & 90:10 → For Special Category States and designated Union Territories.
• During the financial year 2024-25 (as on 31.12.2024), an amount of Rs.38.68 Crore has been released to the States/UTs.
• Bureau of Indian Standards (BIS) – It serves as India’s national standard body under the BIS Act, 2016.
• Over 22,300 Indian Standards are in force, with 94% aligned with international norms of International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC).
• BIS Care App – It enables consumers to easily verify hallmarked jewellery by simply entering the HUID number to check purity, product type, and details of the jeweller and hallmarking centre.
• National Test House (NTH) – It is a trusted laboratory for testing, calibration, evaluation, and quality control of a wide range of engineering materials and finished products.
• The NTH is modernising its operations through the adoption of digital solutions such as Laboratory Data Automation System (LDAS), new mobile application, etc.
• It tested 45,926 samples in 2024–25, revenue up 49.89%.
• Legal Metrology Amendments (2025)
  • Packaged Commodities Amendment Rules, 2025 – Medical device packages must comply with Medical Devices Rules, 2017 labeling norms.
  • Government Approved Test Centre Amendment Rules, 2025 – It expanded scope of approved test centres by recognizing regional reference laboratories and national test houses.

What are the key issues associated with consumer rights in India?

• Low Consumer Awareness – Many consumers are unaware of their rights to safety, information, choice, and redressal under the law.
• Delays in Grievance Redressal – The Consumer courts and grievance portals face case backlogs and procedural hurdles, leading to prolonged delays.
• Misleading Advertisements & Unfair Trade Practices – Misleading claims in health, education, and e-commerce trick consumers; enforcement is weak.
• Digital & Financial Fraud – With the rise of online shopping and digital banking, consumers face cyber fraud, phishing, and unauthorized transactions.
• Weak Enforcement & Accountability – Authorities like CCPA exist but lack strong power; companies often escape liability.
• Accessibility Issues – Rural consumers face difficulty accessing consumer forums or online portals due to poor digital access and language barriers.

What lies Ahead?

• National Consumer Day 2025 highlights India’s ongoing commitment to safeguarding consumer rights and promoting trust in the marketplace.
• Various activities like digital launches, collaborations, awareness drives, and innovation awards show a united effort to empower consumers.
• Collectively, these measures demonstrate steady progress towards a fair, transparent, and consumer-centric ecosystem, reinforcing the idea that informed and empowered consumers are vital for a healthy economy.

References

1. PIB | National Consumer Day
2. Law Bhoomi | Evolution Of Consumer Protection Law

Ghost Pairing

Why in News?

The Indian Computer Emergency Response Team (CERT-In) has issued an advisory about an active threat campaign targeting WhatsApp users with a new technique called Ghost pairing.

• It is one of the new phone hacking techniques, where threat actors use social engineering and messenger apps such as WhatsApp and Telegram.
• WhatsApp ghost pairing uses the “Linked Devices” feature.
• Process - A scammer tricks a user into sharing a verification code or scanning a QR code, mostly through fake messages pretending to be support or known contacts.
• Once linked, the attacker’s device silently syncs with the victim’s WhatsApp.
• The victim continues chatting as usual, unaware that messages, media, and sometimes even contacts are being mirrored in some other unwanted device.
• They initially build trust by having the name of a known contact (in the potential victim's phone list), or a government agency representative (Income Tax), or a bank executive.
• They send a message with a 'Hi, check this photo'.
• The message contains a link with a Facebook-style preview, which later leads to a verification process via phone number.
• As part of a social engineering tactic, the threat actors use urgency or panic-inducing statements, such as if the user don't perform this action, their bank account will be frozen, or the phone number will be blocked immediately.
• Many users rarely check their linked devices, allowing attackers prolonged access.
• Since the pairing uses a legitimate WhatsApp feature, victims often realise something is wrong only after data misuse, fraud, or leaked private conversations.
• Scammers depend mostly on human psychology, posting situations of utmost urgency.
• Prevention - Prevention starts with just being aware. Never share WhatsApp verification codes or scan QR codes sent by others.
• Regularly check the “Linked Devices” section and remove devices that might look fishy and problematic.
• Enable two-step verification for increased protection.
• Most importantly, it is necessary to rethink when messages create panic or urgency.
• A few seconds of verification and cross-checking can prevent weeks of damage and loss of privacy.

Reference

Deccan Herald | Ghost Pairing

Raccoon roundworm

Why in News?

A dangerous raccoon roundworm is spreading across Europe, causing severe brain damage and blindness in rare human cases.

• Raccoon roundworm is a parasitic nematode (roundworm) primarily found in raccoons, but it can infect humans and other animals.

Raccoons are adaptable omnivorous mammal’s native to North America, recognised for their masked face and role as hosts for certain zoonotic parasites.

• Scientific Name - Baylisascaris procyonis.
• This parasite starts life in raccoon intestines, where adult worms pump out millions of eggs that end up in faeces.
• Transmission - Those eggs toughen up in soil for weeks, surviving for years and waiting for an unlucky host to swallow them, perhaps through dirty hands or contaminated water.
• Symptoms in humans - The larvae hatch and wander, burrowing into tissues, eyes, or worst of all, the brain.
• Symptoms can mimic other illnesses like nausea, fatigue, even blindness or fatal brain damage.
• Vulnerables - Children, who love playing in dirt, face the biggest risk.
• Global Spread – Raccoons are native to North America and only pop up here as rare smuggling cases or accidental stowaways in shipping containers.
• It has firmly taken hold in wild raccoons across 9 countries, with Germany at the epicentre.
• Infection rates as high as 77% in some regions, and urban raccoons are bringing the parasite closer to people than ever before.
• Europe has already seen 3 confirmed cases leading to permanent vision loss.

India has no wild raccoons as of now.

Reference

India Today | Raccoon roundworm

'SHAKTI' Scholars Fellowship

Why in News?

The National Commission for Women (NCW) has started a new fellowship, 'SHAKTI' Scholars Fellowship.

• SHAKTI Scholars Fellowship is an NCW initiative providing a 6-month research grant to young Indian researchers for policy-oriented studies on critical issues affecting women.
• Eligibility - Open to Indian citizens aged 21–30 years with at least a bachelor’s degree from a recognized institution.
• Preference to those pursuing or holding postgraduate/higher research qualifications or having strong research experience.
• Grant - Fellowship offers Rs 1 lakh grant.
• Selection Process - Applications are evaluated by an expert committee, and shortlisted candidates are interviewed online as part of the selection.
• Research Areas
  • Women’s safety and dignity
  • Gender-based violence
  • Legal rights and access to justice
  • Cyber safety
  • Implementation of the POSH framework
  • Women’s leadership and political participation
  • Health, nutrition, education, and skill development
  • Economic empowerment and labour participation
  • Socio-cultural practices and work–life balance.
• Helpline - Additionally, last month, the NCW launched a 24x7 helpline number, 14490, to provide immediate assistance to women in distress.
• The commission appealed to citizens, social organizations and educational institutions to spread awareness about this helpline number.

Reference

NDTV | 'SHAKTI' Scholars Fellowship

India’s Largest Circular Stone Labyrinth

Why in News?

In India, archaeologists have made a discovery that will help historians better understand the country’s ancient trade networks, confirming the presence of a large circular stone labyrinth.

• The recent findings described the uncovering of a massive structure measuring roughly 50 feet by 50 feet.
• Period - This structure dating back nearly 2,000 years in the Boramani grasslands of Solapur district in Maharashtra.
• The structure is composed of 15 concentric stone circuits, the highest number ever documented in an Indian circular labyrinth.
• Previous discoveries have topped out at 11 circuits.
• Related Dynasty - Archaeologists have linked the structure to the Satavahana dynasty, which ruled large parts of the Deccan Plateau between the 1st and 3rd centuries CE.
• During this period, Maharashtra played a central role in long-distance trade between India and the Roman world,serving as a conduit between inland settlements and ports.
• Design - The researchers believe the labyrinth’s design offers compelling evidence of Indo-Roman contact.
• The circular pattern closely resembles labyrinth motifs found on ancient coins from Crete.
• Such coins were widely used as Roman currency and have been discovered in Indian port cities and trading centers dating to the same era.
• Purpose - Experts have proposed that these labyrinths may have served as navigational markers or symbolic signposts for Roman merchants and local traders moving goods such as spices, textiles, and precious stones.
• Similar, though smaller, stone labyrinths have been identified in neighboring districts, including Sangli, Satara, and Kolhapur.
• Together, these finds suggest the existence of a broader network of structures spanning western Maharashtra, possibly marking inland trade routes that once connected coastal ports to the Deccan interior.
• Significance - Their placement in open grasslands rather than within settlements, religious complexes, or fortifications has fueled speculation that they were meant to be seen from a distance, guiding travelers across unfamiliar terrain.

Reference

Jpost | Large circular stone labyrinth

Financial Fraud Risk Indicator (FRI)

Why in News?

The Department of Telecommunications (DoT) recently announced its Financial Fraud Risk Indicator (FRI) prevented Rs.660 crore in potential cyber fraud losses within just six months of its May 2025 rollout.

• The Financial Fraud Risk Indicator (FRI) is a risk-flagging mechanism developed to identify, classify, and prevent financial frauds, especially in digital transactions.
• Launch - Rolled out by DoT's Digital Intelligence Unit (DIU) in 2025.
• Purpose - To assess the likelihood of fraud associated with a customer, account, transaction, or digital identity.
• Used by - Banks, NBFCs, fintech firms, and payment service providers.
• Basis - Analysis of parameters such as transaction behavior, device data, location, velocity of transactions, and past fraud patterns.
• Collaboration- Supported by the Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI).
• Mechanism - Uses the Digital Intelligence Platform (DIP) to aggregate data from banks, telecom providers, and citizens (via Sanchar Saathi) to identify risky numbers.
• Output - Generates a risk score or flag (low, medium, high risk) to enable preventive action.
• Impact - Prevented Rs.660 crore in potential losses within its first 6 months.
• Citizen Role - Relies on citizens reporting suspicious activity through the Sanchar Saathi portal, highlighting the importance of public participation.

Reference

Telecom | Financial fraud risk indicator (FRI)