CURRENT-AFFAIRS

Context

Recently, the Honorable Supreme Court rejected the petition filed by Justice Yashwant Varma (then a judge of the Allahabad High Court), which challenged the 'unilateral' formation of an inquiry committee by the Speaker of the Lok Sabha. This case is significant from the perspective of defining the balance between parliamentary autonomy and judicial accountability.

Inquiry Committee

Under the Judges (Inquiry) Act, 1968, a three-member committee has been constituted to investigate the truth of the allegations. It includes:

• Justice Arvind Kumar: Judge of the Supreme Court.
• Justice Manindra Mohan Shrivastava: Chief Justice of the Madras High Court.
• B. Vasudev Acharya: Senior Advocate and eminent jurist.

Why in News?

On January 16, 2026, the Supreme Court rejected Justice Varma's petition challenging the "unilateral" formation of the inquiry committee by the Lok Sabha Speaker. Justice Varma had argued in the Supreme Court that:

• Demand for Joint Committee: Since the notice for impeachment was given in both the Lok Sabha and Rajya Sabha on the same day, according to the rules, the Lok Sabha Speaker and the Rajya Sabha Chairman should have formed the inquiry committee jointly.
• Unilateral Decision: He alleged that the Lok Sabha Speaker formed the committee "unilaterally" without waiting for the Rajya Sabha's decision, which is a violation of the Judges (Inquiry) Act, 1968.
• Question on Deputy Chairman’s Authority: He also stated that the notice in the Rajya Sabha was rejected by the Deputy Chairman, whereas he did not have the authority to do so.

Supreme Court's View and Decision

The bench of Justice Dipankar Datta and Justice Satish Chandra Sharma rejected all of Justice Varma's arguments, stating:

• Removal Process Cannot be Obstructed: The court clarified that the constitutional protections granted to judges cannot be used to paralyse the process of their removal.
• Autonomy of the House: The court said that if one House rejects the notice, it does not mean that the proceedings of the other House will also stop. The Lok Sabha Speaker has the full right to independently constitute a committee.
• Authority of the Deputy Chairman: Citing Article 91 of the Constitution, the court said that when the post of Chairman is vacant, the Deputy Chairman possesses all the powers of the Chairman.
• No Personal Injury: The bench stated that the inquiry committee will only submit a report; the final decision is to be taken by the members of Parliament. Therefore, at present, no fundamental rights of Justice Varma have been violated.

Main Dispute

• This entire case began in March 2025, when a fire broke out at the official residence of Justice Yashwant Varma in Delhi.
• During the firefighting operations, firemen found bundles of burnt and half-burnt notes in large quantities. Following this incident, allegations of corruption and misconduct were leveled against him.

Impact of the Supreme Court Decision

This decision has made it clear that judicial independence does not mean evading accountability. This will put a stop to future attempts to stall investigations against any judge on technical grounds.

Removal Process:

Under Articles 124(4) and 218 of the Constitution, the process for removing judges of the higher judiciary is as follows:

• Initiation of the Motion: A notice signed by 100 members of the Lok Sabha or 50 members of the Rajya Sabha.
• Discretion of the Presiding Officer: The Speaker or Chairman can accept or reject it.
• Inquiry Committee: A 3-member committee to investigate the allegations.
• Parliamentary Discussion and Voting: If found guilty in the report, voting takes place in the House.
• Special Majority: A majority of the total membership of each House and a 2/3 majority of the members present and voting.
• President’s Order: Finally, the order of removal is issued by the President.

Constitutional Impact

This case reinforces the principles of Separation of Powers and Checks and Balances. It demonstrates that no member of the executive or judiciary is above the law.

Challenges and Concerns

• Complexity of the Process: In India's history, no judge has been removed through this process to date, which illustrates its complexity.
• Politicization: The involvement of political parties in the impeachment process may raise questions about impartiality.
• Impact on Image: Such cases can reduce public trust in the judiciary.

Past Cases:

Impeachment against judges in India has been very rare, and so far no judge of the Supreme Court or High Court has been removed through impeachment. However, in some cases, the impeachment process was initiated, and judges saved themselves from the process by resigning.

• Justice Soumitra Sen (Calcutta High Court): In 2011, the Rajya Sabha found him guilty under the impeachment motion. He was accused of misappropriating funds in court-appointed work and misrepresenting facts. However, he resigned before voting in the Lok Sabha; hence, the impeachment could not be completed.
• Justice P.D. Dinakaran (Sikkim High Court): Serious allegations of corruption and abuse were leveled against him and the impeachment process began. But in 2011, he resigned before the process could be completed.
• Justice A.M. Bhattacharjee (Bombay High Court): In 1995, allegations regarding receiving excessive royalties from a foreign publisher were leveled against him, and he resigned following pressure from lawyers. These cases show that most judges resign themselves before the impeachment process so that the situation of impeachment does not arise and they exit before being removed from the post. However, Justice Varma not resigning makes this case different, as he is still facing the impeachment process.

Analysis

The Supreme Court's firm stand in the Justice Varma case sends a message that "institutional integrity" is above individual protection. The constitutional protection given to judges is only to protect them from undue external pressure, not to evade investigation into serious misconduct.

Way Forward

• Judicial Standards and Accountability Bill: Pending reforms need to be implemented so that there is a clear mechanism even for minor complaints.
• Time-bound Investigation: A definite time frame should be fixed for the inquiry committee and parliamentary proceedings.
• Internal Mechanism: The judiciary should make its "in-house" investigation process more transparent.

Conclusion

The Justice Yashwant Varma case is a test of the maturity of Indian democracy. The Supreme Court's decision ensures that those who protect justice are not outside the ambit of justice themselves. This is a historic step toward establishing the supremacy of the "Rule of Law."

Context

The recent announcement by US President Donald Trump to impose a 25% tariff on countries trading with Iran, coupled with the 'sanctions waiver' set to expire on April 26, 2026, has presented a new diplomatic challenge for India. India is currently in intensive discussions with Washington to keep the Chabahar Port excluded from these sanctions.

Chabahar Port

• This port is located in the Sistan-Baluchistan province along the coast of the Gulf of Oman on the south-eastern coast of Iran. It is Iran's only 'deep-sea' port, where large ships can transit easily.

India's Participation

India's connection with this port is long-standing, but significant progress has been made in recent years:

• The Beginning (2003): An initial agreement was reached between India and Iran to develop this port.
• Trilateral Agreement (2016): During Prime Minister Narendra Modi's visit to Iran, a historic agreement was signed between India, Iran, and Afghanistan.
• Commencement of Operations (2018): The Indian company 'India Ports Global Limited' (IPGL) took over the operations of the 'Shaheed Beheshti' terminal at Chabahar.
• 10-Year Historic Agreement (May 2024): India signed a 10-year long-term contract with Iran for the operation of Chabahar. This was a major victory for India because, previously, agreements had to be renewed every year.

Importance of Chabahar Port for India

Chabahar is not just a port, but the focal point of India's 'connectivity' strategy:

• Bypassing Pakistan: India does not have to rely on Pakistan's land route to reach Afghanistan and Central Asia. This provides India with an independent trade route.
• Gateway to the International North-South Transport Corridor: Chabahar Port is a vital part of the International North-South Transport Corridor (INSTC), which can reduce the time and cost of transporting goods to Russia and Europe by 30-40%.
• Influence in Afghanistan: This port is essential for delivering humanitarian aid (such as wheat and medicines) to Taliban-ruled Afghanistan and maintaining diplomatic influence there.
• Encirclement of China: This port is located only 72 km away from the China-operated Gwadar Port in Pakistan. It is India's strategic response to China's increasing presence in the Arabian Sea.

Current Crisis and India's Role

India is playing the role of an "active mediator" and an advocate of "strategic autonomy" in this matter:

• Dialogue and Coordination: Through the Ministry of External Affairs, India is making it clear that Chabahar is being used for humanitarian purposes and regional stability, and not to increase Iran's military power.
• Financial Management: Showing foresight, India has tried to organize its financial commitments for Chabahar (approximately $120 million) ahead of time so that banking sanctions do not affect it.
• Long-term Commitment: In May 2024, India signed a 10-year operation agreement with Iran, which shows that India is not going to back down from this project despite the pressure.

International Perspective

The world views Chabahar and India's stance from different perspectives:

Analysis: Major Challenges

• Dual Effect of Sanctions: If the US does not extend the waiver, Indian shipping companies and logistics firms will be afraid to work with Iran.
• Tariff Pressure: A 25% tariff will make Indian exports (rice, pharma) expensive, which could affect bilateral trade ($1.6 billion).
• Internal Instability in Iran: Ongoing protests and political instability in Iran create risks for future investment.

Conclusion

For India, Chabahar is a 'geopolitical necessity'. Before the 2026 deadline, India needs to convince the US that the development of Chabahar is in the global interest to keep Afghanistan away from terrorism and instability, in order to save its 'Neighborhood First' policy and 'Engagement with Central Asia'. India must balance trade with the US and connectivity with Iran while maintaining its "strategic autonomy."

Context

The beginning of the year 2026 has been marked by massive upheaval in global politics. The 'unilateral decisions' being taken by the U.S. administration (Trump 2.0) without regard for international laws have placed countries like India at a difficult diplomatic crossroads. Various recent developments have raised serious questions about India's current silence.

What is 'On Mute' Policy?

In diplomatic terminology, 'On Mute' refers to a situation where a nation, instead of taking a clear stand on international events affecting its interests, remains silent or gives only a 'procedural' response.

• India is currently adopting a policy of "expressing concern without taking names" or "restricting itself only to the safety of citizens" on important global issues.

Reasons for Discussion:

The following events are prominent behind India's "non-reactive mode" in the last few days:

• Venezuela Crisis: India expressed only "deep concern" over the military action taken by the U.S. to capture Venezuelan President Nicolás Maduro, while it is being considered a violation of international sovereignty.
• 25% Tariff on Iran: The U.S. has announced an additional 25% duty on countries trading with Iran. India has not registered any official protest against this, even though India's large investment in Chabahar Port is at stake.
• Pressure on Russia and Oil: The U.S. has warned India to stop purchasing Russian oil, otherwise threatening to impose tariffs of up to 500% on exports.

Current U.S. Foreign Policy

Under Trump 2.0, U.S. foreign policy has become 'transactional' and 'unilateral':

• Economic Nationalism: Intimidating other countries through tariffs.
• Administrative Dominance: Forcing even friendly nations to align with its geopolitical priorities (such as isolating Iran/Russia).
• Pax Silica: The U.S. is creating a new system like 'Pax Silica' in the fields of technology and semiconductors, in which it seeks policy concessions from countries like India in exchange for inclusion.

India's Policy and Changes:

The changes in India's policy over the last few years can be understood through these points:

• Past: In 2019 as well, India stopped buying oil from Iran and Venezuela under U.S. pressure. The agreements made then did not yield any long-term benefits for India; rather, energy security was affected.
• Current Change: India is now moving towards tactical accommodation instead of strategic autonomy.
• Reason: Due to the border dispute with China and the proposed 'Bilateral Trade Agreement' with the U.S., India currently does not want to risk displeasing the United States.

Why is India Silent?

There are solid diplomatic reasons behind this silence of India:

• National Security: U.S. intelligence and military cooperation against China is indispensable for India.
• Economic Interests: The U.S. is India's largest trading partner. India wants to protect its exports by avoiding a 'tariff war'.
• Chabahar Concession: India is discussing the extension of 'sanctions waivers' for the Chabahar port with the U.S.

Analysis

Silence does not always provide security. If India is a supporter of a rule-based global order, it must speak out against the violation of international law.

• Loss of Prestige: India's image as a leader of the Global South (developing countries) may be affected.
• Challenge of BRICS: In 2026, India has to host the BRICS summit, where countries like Iran and Russia will be present. There, India's 'mute mode' could create an awkward situation for it.

Way Forward

• Multi-Alignment: Instead of leaning towards any one power, India should further strengthen its policy of 'multi-alignment'.
• Clear Dialogue: The necessity of its relations with Russia and Iran must be presented with more clarity before the U.S.
• Economic Self-reliance: To reduce dependence on the dollar, trade in local currencies (such as Rupee-Ruble trade) should be increased rapidly.

Conclusion

"Silence" in diplomacy can sometimes be strategic, but it should not become "lack of principle" in the long run. India must understand that appeasement of a superpower is not a guarantee of the protection of national interests. India's real strength lies in its independent thinking and strategic autonomy.

Context

The Finance Minister of India is going to present the Union Budget in Parliament on February 1, 2026. This budget comes at a time when the Indian economy is trying to strike a balance between global geopolitical instability, increasing trends of protectionism, and the need for structural reforms at the domestic level. This budget will also be the first year of implementation of the recommendations of the 16th Finance Commission.

Budget

A budget is a complete account of the income and expenditure of any government or institution for the coming year. In the context of India, it is called the 'Union Budget', which is presented every year in Parliament by the Finance Minister.

• Under Article 112 of the Indian Constitution, the budget is termed as the "Annual Financial Statement".
• The word 'Budget' is not mentioned anywhere in the Constitution.

Key Dimensions of the Budget and Regional Demands

• Fiscal Federalism and Kerala’s Wish-list: Within the framework of cooperative federalism, the financial condition of the states remains a matter of concern. The Kerala government has demanded a 'Special Fiscal Correction Package' of ₹21,000 crore from the Centre.
  • Argument: Reductions in borrowing limits and new methods of GSDP calculation have led to a decline in state revenues.
  • Proposed Investment: A 'Defence Innovation Corridor' connecting Vizhinjam, Chavara, and Kochi, and a price stabilization fund for the rubber sector.
• Digital Economy and Crypto Taxation: The Indian crypto industry considers the current tax regime "restrictive," causing a trading volume of approximately ₹4.87 lakh crore to shift to foreign exchanges.
  • Key Demands: Reducing the 1% TDS to 0.01%, reviewing the 30% flat tax, and allowing 'Loss Set-off' similar to other financial assets.
  • Impact: A balanced tax framework will provide a 'level playing field' to domestic exchanges and increase transparency.
• Urban Housing and Real Estate: The real estate sector has demanded a change in the current 'Affordable Housing' limit of ₹45 lakh as it is not in line with market reality.
  • Challenges: Increasing cost of land acquisition and inflation of construction materials (steel, cement).
  • Demand: Increasing the limit of affordable housing to ₹75-90 lakh and increasing the home loan interest exemption (Section 24) from ₹2 lakh to ₹5 lakh.
• Opposition Voice: Structural Challenges and 'Statistical Illusions': The main opposition party (Congress) has outlined three "structural challenges" of the economy ahead of the budget:
  • Statistical Illusions: Showing higher GDP growth rates by using low price deflators.
  • Attack on Fiscal Federalism: The 60:40 funding formula in the new form of MGNREGA is putting an additional financial burden on the states.
  • Sluggishness in Private Investment: Despite cuts in corporate tax, private investment has not increased as expected, along with rising economic inequality.

Economic Analysis

Budget 2026-27 will have to balance the following two contradictory goals:

• Fiscal Discipline: Keeping the fiscal deficit within the target limit so that global rating agencies and inflation remain under control.
• Inclusive Growth: Increasing investment in capital expenditure and social security schemes to address rising unemployment and sluggishness in rural demand.

Way Forward

• Transparency: Transparency in calculation methodologies is essential to maintain the reliability of statistical data.
• Coordination with States: Under the 16th Finance Commission, the specific requirements of states (such as geographical challenges of Kerala or the development of the North-East) should be taken into account in the distribution of taxes.
• MSME and Employment: The main focus of the budget should be to make credit accessible to Micro, Small, and Medium Enterprises (MSMEs), as this sector generates the most employment.

Conclusion

Budget 2026-27 is not just an account of income and expenditure, but should be a roadmap towards the resolve of a Developed India. It requires a fine balance between 'market reality', 'technical innovation', and 'social justice'.