In this article, Sachin Vats of RGNUL discusses what are the Requirements for Opening a Wine Shop in Delhi.

Liquor is a non toxic liquid which contains Ethyl Alcohol. It is the flavour of the liquor that marks its variety as well as quality. There are mainly three types of liquid produced for consumption in India.

• Indian Made Foreign Liquor.
• Beer.
• Country Made Liquor.

In Indian market, the Indian Made Foreign Liquor is consumed mostly by the middle-class people. The license for selling liquor in Delhi is granted according to the Delhi Liquor License Rules, 1976. It grants different forms of licenses for Indian Made Foreign Liquor, Country lIquor, Denatured and Special Denatured Spirit, Rectified Spirit and some special provisions regarding timing and other issues. The license is granted by the Excise Department and the selling of liquor comes under excise, entertainment and luxury taxes.  

How to get License for Wholesale Supply of Indian Liquor in Delhi

• The Government of National Capital Territory of Delhi grants the license for the wholesale supply of Indian liquor in the form of L-1. The Government formulates the Excise policy and approves the Terms and Conditions for granting L-1 License every year.
• The Licenses are granted to a company or a society or a partnership firm or a proprietorship firm which have licensed manufacturing units such as distillery, brewery, bottling plant, winery.
• A Public Notice is made by the Government in all the leading newspapers of the territory regarding application of the grant of license. The notification is also available on the website of the Department.
• The application is made according to the prescribed format in response to the public notice to the Deputy Commissioner of Excise. The prime job of the L-1 licensee is to supply liquor to all other licensee like L-6, L-7, L-9, etc.
• There are different documents required which should be submitted along with the application in the described format. The application procedure must comply with the given Terms and Conditions provided in the notice. The Application must be duly signed by the President or Secretary of the Society. There is some processing fee, some certificates and affidavits required for the application.
• Once the license is approved, the applicant required to have bonded warehouse approved for storage of liquor. Immediately after the approval of the license, the applicant has to deposit Licensee fee, Label Registration fee and bonded warehouse fee and apply for the following:-
  • Registration of Brands.
  • Approval of Bonded Warehouse.
  • Approval of Label.
  • Fixation of ex-distillery price.

License for Retail Shop of Foreign Liquor or Beer

• The licenses for selling Foreign liquor or beer is granted only to the selected undertakings of the Delhi Government such as Delhi State Industrial and Infrastructure Development  Corporation (DSIIDC), Delhi State Civil Supplies Corporation (DSCSC), Delhi Tourism and Trade Development Corporation (DTTDC).
• Any proposal for opening a vend for foreign liquor will come from above corporations. Any individual who wants to give his premise on rent for opening such vend will have to approach any of the above authorities. These corporation after looking the suitability of the premise will approach Commissioner of Excise for grant of L-2 license.
• The premise should fulfil the following requirements in order to be a liquor shop,
  • The vend premises should be in a pucca building with minimum floor area of 400 ft. on a floor and located in commercial area.
  • The area MLA should have given his positive opinion in respect of vend premises, as regards opening of the vend.
  • The vend premises are inspected by the site selection committee comprising DEO the representative of the Corporations and area SDM. The Committee inspects the shop to ascertain that the premises meet the requirement of excise rules as below :
    • “No liquor shop for consumption off the premises shall be located within a distance of 75 metres from the following, namely:
      • Any industrial estate and other major construction site,
      • Major educational institution
      • Religious Places
      • Hospitals and Nursing Homes with more than twenty five beds; and
      • Colonies of Labourers and harijans

If these requirements are fulfilled by the premise and found suitable, the L-2 License is granted and the concerned corporation has to deposit an amount of Rs. 100,000 as license fee to issue a license. There are many such vend operating in Delhi.

Is it Legal to Serve Liquor in Hotels

• Yes, we can consume alcohol in hotel but the hotel must have L-3 license granted it by the Government of NCT Delhi. The Department of Excise, Entertainment and Luxury Tax grants license only to those hotels which are holding Star classifications and approval of Department of Tourism, Government of India.
• The license is granted in the form of L-3. It empowers the hotel to serve foreign liquors to the residents in their room.
• The hotels will have to seek for a separate License if they want to serve liquor in exclusive Bar or Restaurant which is in the premise of the hotel. The License is granted in the form of L-5 and restricted strictly to the premise of bar and restaurant only.
• The hotel has to submit the application on its letterhead accompanied by following documents.
  • Documentary proof regarding hotel whether it is company, partnership firm, etc.
  • The hotel is in the legal possession of the plot.
  • Complete certificate in respect of the hotel building.
  • Trade License from the local authority i.e., MCD or NDMC as the case may be.
  • Lodging house license for the local authority.
  • Documentary proof regarding applicant is Income-Tax assessee or Sales-Tax assessee.
  • Proof of Department of Tourism, Government of India indicating the project approval and recommendation of the L-3/ L-5 License.
  • No Objection Certificate from Delhi Fire Services.
• The application is submitted to the Commissioner of Excise and the license is granted after the inspection done by the committee of license granting authority. The minimal requirements like it should not be within the distance of 75 metres of major educational institutions, religious places and hospitals having more than 50 beds.

Can we take Liquor in Restaurants

• An independent restaurant approved by the Department of Tourism, Government of India can apply for a L-4 License to serve liquor in its restaurant. They have to apply to the Commissioner of Excise in prescribed form along with the documents indicated in the application form.
• The restaurant should be located in the commercial area with adequate parking space. The restaurant has to meet the requirement of the rule 11 of the Delhi Intoxicants License and Sales Rules,1976 as provided in the terms and conditions.
• The list of documents required for L-4 License are :-
  • Approval of Department of Tourism, Government of India.
  • Memorandum and Articles of Association or Certification of Incorporation or Partnership Deeds, etc.
  • Proof of lawful possession of premises.
  • Copy of Income Tax clearance.
  • Copy of Sales Tax registration.
  • Trade License issued by MCD or NDMC.
  • Copy of eating house license from DCP.
  • No Objection Certificate from Fire House Department.
  • Other Affidavits as required in the application form.

What is the Stand of the Current Government

• The Government of National Capital Territory of Delhi has directed the Department of Excise not to grant any new liquor licenses. The Government has stated that the existing number of liquor vendors is quite enough to meet the demand of liquor in the city.
• The implementation of this decision will not be an easy task as the Government will have to face protests and legal action from those who have already submitted their application for granting of license.
• The National Restaurant Association of India has totally opposed the decision of the Government and said that it may disturb law and order in the territory.

Do’s and Don’t prescribed by the Excise Department

The Excise Department as part of its policy to provide safe and quality liquor to the consumers in Delhi has formulated some guideline which is followed to regulate and control the sale of liquor in the NCT of Delhi.

• License is not granted to a person who is not assessed to income tax.
• The liquor from ary canteen is meant for army personnel only and not for the general public.
• Always buy liquor from authorized liquor shop.
• If one is traveling to Delhi from outside state, one should not possess more than one unsealed liquor bottle of 750 ml.
• Do not service liquor at unlicensed premises and from illegal sources.
• Do not buy if you are below 25 years of age.
• No person shall permit or publish in any newspaper/book/leaflet matter soliciting the use of or offering any liquor.
• No person should be employed at any licensed premises either with or without remuneration any male under the age of 25 years or any female in part of such premises in which liquor or intoxicating drug is consumed by the public.
• The licensee shall prominently display in front of his shop a signboard showing the retail price of each brand of liquor to be charged by him.
• Always buy liquor from authorized liquor shop.
• The consumers while buying liquor from authorized liquor shop must ensure that the bottle is marked “for sale in Delhi only.”

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Reference

• Government website of Delhi Excise Department.
• Delhi Government Portal.

In this article, Diksha Chaturvedi of New Law College, Bharati Vidyapeeth Pune discusses the difference between Indemnity, Guarantee and Warranty.

Introduction

• People will often wonder that why there is a need of so much law in their lives. Why is it necessary all the time? It is because nowadays unethical practices are growing rapidly. There has been a pressure to protect the consumers.  People are striving to maximise profit only.
• For that they exploit consumers by providing low quality products and services. Thus, it has become necessary to safeguard the interest of a consumer.
• To safeguard this, concept of Caveat Emptor is there. This means that a consumer must have necessary contractual and negotiation skills, proper knowledge about the product, rights available to him etc.
• This protection to a consumer comes in the form of Contract of Indemnity, Guarantee and Warranty. Though these words are similar as they all provide protection to the consumer but still they differ from each other.

Indemnity

Contract of Indemnity is a special contract which is mentioned under Indian Contract Act, 1872 in section 124 and 125. It is a contingent contract.

It is defined as ‘A contract of indemnity is a contract whereby one party promises to save the other from loss caused to him by the conduct of the promisor himself or by the conduct of any person.’

Under an indemnity contract one agrees to assume all responsibility and liability for any injuries or damages to someone else.

The person who undertakes to indemnify or make the good loss is called the ‘indemnifier’ and whose loss is made good is called the ‘indemnified’ or ‘indemnity holder’

Example: A contracts to indemnify B for any consequences of any proceedings which C may against B with respect to certain sum of Rs.200. This is a contract of indemnity. If B is ordered to pay to C Rs.200, A shall be required to pay this amount to B.  

Features of Indemnity

• It must be a valid contract.

• It must possess all the elements of a valid contract as mentioned under the act.

• It is a contingent contract.

• It is a contract to make good the loss if any such loss in incurred by the indemnified.

• Loss must be caused by human conduct.

• The loss which has been caused to the indemnified must be because of the act of a human or his conducts.

• Loss must have actually occurred.

• The indemnified should have actually occurred the loss to be an indemnity holder.

Rights under Indemnity

Rights of Indemnity Holder

• Damages: In the contract of indemnity, the indemnity holder has the right to recover from all those damages which he has been promised.
  

• Costs: All costs which he may be compelled to pay in any such suit if, in bringing or defending it, he did not contravene the orders of the promisor, and acted as it would have been prudent for him to act in the absence of any contract of indemnity, or if the promisor authorized him to bring or defend the suit.
  

• Sums: All sums which he may have paid under the terms of any compromise of any suit, if the compromise was not contrary to the orders of the promisor, and was one which it would have been prudent for the promisee to make in the absence of any contract of indemnity.

Rights of indemnifier

The act is silent on this. But after compensating the indemnity holder, the indemnifier is entitled to be protected by all ways and means.

Guarantee

Contract of Guarantee is a special contract which is mentioned under Indian Contract Act, 1872 from section 126 from 146.

Guarantee is a kind of an agreement or promise to pay the debts when the principal debtor fails to do so. Basically, in it the liability of third person is discharged by way of performing contract.  

The person who gives the guarantee is called the ‘surety’; the person in respect of whose default the guarantee is given is called ‘the principal debtor’ and the person to whom the guarantee is given is called the ‘creditor’.

Kinds of guarantee

• Specific guarantee
  It means guarantee which is given for a particular single transaction only. Under it the liability of the surety extends to a single transaction only.
  Example: A guarantee payment to B for the price of 50 kgs of sugar to
  be delivered by B to C and to be paid in a month. B delivers to C. C pays for them. Afterwards B delivers 10 kg of sugar to C, which C does not pay. The guarantee given by A was only a specific guarantee and accordingly he is not liable for the price of the 10 kg sugar.
  

• Continuing guarantee:
  It means guarantee which extends to series of transaction. It is not circumscribed to a single transaction. Under this surety can fix the limit on the amount to be paid and when to be paid.
  Example: overdraft.

Rights of surety

• Against the Principal Debtor:
  – Right of subrogation
  – Right of indemnity
  

• Against the creditor:
  – Right of Securities.
  – Right to claim set off.

• Against the co-sureties:
  When the co-sureties have given guarantee for the same debt then they are liable to pay equally but according to the limit set by them.

Warranty

Warranty is an assurance given by the seller to the buyer that the product or service is of fine quality or what is promised to them. The warranty is drafted by the buyer.

The purpose of warranty is

• Allocation of risk between buyer and seller.
• It encourages the seller to make all the necessary disclosure about the warranty.
• Allows the buyer to set purchase price.
• Enable the buyer to have protection through indemnities for known liabilities and in extreme circumstances can withdraw acquisition.

Breach of Warranty

If there is a breach of warranty then the buyer can seek for damages. The buyer is being compensated for the loss. They are put in the position in which they would have if the breach would not be done.

To claim for damages the buyer has to prove that:

• The warranty is untrue and breach has been done.
• Loss or damage is been suffered by the buyer.
• The loss caused is because of breach of warranty.
• The loss is not too remote i.e. it could have easily been foreseeable.
• They have taken reasonable steps to mitigate loss.

Comparative Analysis

Conclusion

It is necessary to know the difference between indemnity, warranty and guarantee for a better understanding. All these contracts play an important role in the commercial transactions. Thus, these concepts are similar in the sense that they all protect the consumers but still they differ from each other.

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In this article, Shubham Singh of KIIT School of Law discusses whether trading in Ethereum is legal in India or not.

Introduction

Ethereum was first mentioned in 2013 as a result of a research work by Vitalik Buterin on the Bitcoin community. After this, an Ethereum white paper (i.e., a guideline) was published by him, in which he discussed the technical designs and the rationale regarding the protocol of ethereum and the architecture of smart contracts. Ethereum was duly announced in the year 2014 by Buterin in Miami, Florida, USA at The North American Bitcoin Conference.

Ethereum was co-founded by Vitalik and Dr. Gavin Wood. Dr. Wood, in April 2014 published the Ethereum Yellow Paper, which included technical specifications for the Ethereum Virtual machine (EVM).

What is Ethereum?

Ethereum is an open blockchain platform which allows anyone to develop and use decentralised applications which work on blockchain technology. Ethereum is just like Bitcoin, where no one owns it or controls it. Ethereum is an open source project which is built by many people around the world. Ethereum was designed different from Bitcoin, aiming to be adaptable and flexible. On Ethereum platform it is easy to create new applications.

It has a cryptocurrency named Ether that runs on the ethereum blockchain. It is a digital currency.

A next generation blockchain

A blockchain is a place where every network crossing completes and records the transactions taking place, those transactions which are grouped into blocks, it is an allocated computing architecture. Blockchain technology was first brought up in 2008 in the white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” by Satoshi Nakamoto, it is the technological basis of Bitcoin.

Ethereum Virtual Machine

Ethereum Virtual Machine or “EVM” is used for execution of code of arbitrary algorithmic complexity. Developers create different applications which run on EVM by using programming languages which are based on the existing languages like JavaScript and Python.

Smart contract

It is a phrase that is used for describing computer codes which can simplify the exchange of money or content or property or shares or anything of value. When a smart contract is made run on the blockchain, then it starts acting as a self-operating computer program which automatically executes whenever specific conditions occur. Without any fear of censorship or downtime of fraud or third party interference, smart contract run fully as programmed, because it runs on the blockchain.

Other blockchains are limited but Ethereum provides developer with an option to create any operations which they want. This will allow developers to build much more different applications which will go beyond whatever anyone has seen before.

How do Ethereum works?

Ethereum includes a lot of features and technologies which are similar with Bitcoin and hence familiar to users of Bitcoin. Ethereum has on its own also introduced many modifications and innovations.

Unlike Bitcoin, Ethereum basic unit is the account and Bitcoin’s blockchain was entirely a list of transactions. Ethereum blockchain tracks the state of each account, and all state transitions are transfers of value and information between accounts.

There are two types of account

• Externally Owned Accounts (EOAs)- these are controlled by private keys;
• Contract Accounts- these are controlled by their contract code, and this account can only be ‘activated’ by an Externally Owned Account.

The main difference is that EOAs are controlled by human users and Contract accounts through internal code. In Contract accounts, the term ‘smart contracts’ refers to code. Users by deploying code to blockchain can create new contracts.

When instructed by EOA, then only Contract account can perform any operations. Hence, there is no possibility of performing native operations like random number registration and API calls by a Contract account.

Just like Bitcoin, it is mandatory for users to pay small transaction fees to the network and this leads to protection of Ethereum blockchain from different non-serious and malicious tasks, like DDoS attacks and Infinite loops. The sender of a transaction is bound to pay for every step of the program which they activated it also includes Computation and memory storage. All the fees are paid in ‘Ether,’ Ethereum’s cryptocurrency. The nodes which validate the network has the responsibility of collecting transaction fees. In Ethereum network ‘miners’ works as nodes and they receive, transmit, verify and then they execute the transactions. After this miners work is to group all the transactions that include different updates for the “state” of accounts in the blockchain of Ethereum- into “blocks”, then miners compete for every successful block that they have mine, among themselves. By this economic encouragement is given to the people so that hardware and electricity to the Ethereum network get provided by the people.

Similarly, as Bitcoin network, miners can successfully mine a block by solving a complex mathematical problem given to them. This process is referred as “Proof of Work”. As it has earlier occurred in the Bitcoin network for discouraging centralisation because of the use of specialised hardware (e.g. ASICs), Ethereum has chosen a memory-hard computational problem. This allows distribution of security in a more decentralized manner as compared to those blockchains of Bitcoin whose mining is dominated by specialized hardware.

Platform for Buying And Selling Ethereum in India

Ethereum is a free and digital currency like Bitcoin. It works on the model of blockchain with a scripting functionality. Ethereum offers EVM a virtual machine for the purpose of running scripts. Ethereum makes transfer of ‘ether,’ which is a value token and is necessary for compensation of network nodes that are involved in the process carried out in Ethereum Virtual Machine. Through the help of a mechanism known as ‘Gas,’ which is a transaction pricing machine, Ethereum aims to avoid network spam.

Since a lot of attention has been gained by Ethereum projects it is expected that Ethereum will beat Bitcoin in the upcoming years in India.

How to Buy Ethereum in India?

An online platform ‘ETHEXIndia’ has been provided for exchange and trading of Ethereum. In India, ETHEXIndia was the first marketplace launched for buying and selling of Ethereum tokens, ‘Ether’ or ‘Eth.’ With the help of an effective wallet system, this marketplace has offered a real time trading experience.

Registration on this platform does not require any fee, there is also no fees of trading also. After registering an account and getting access to it on ETHEXIndia, user can freely use the trading system and secure wallet services offered by the site.

Ethereum Vs Bitcoin

Usually, people compare the aspect of cryptocurrency of both Ethereum and Bitcoin. But in reality, both Ethereum and Bitcoin have very different projects and with different goals. Bitcoin has mainly emerged as a relatively stable digital currency, whereas Ethereum’s main aim is to encompass more, with ether just a component of its smart contract applications.

Ethereum and its legal implications

• Ethereum has brought up and offered an alternative to law. By the parts involved at the time of enforcing and verifying by the network, new types of law can be written. Agreements are unclear and enforcement of such agreement is hard. Ethereum has a way for solving this problem, it uses two special ingredients- first, a digital currency and second, a complete programming language.
• Ethereum also allows to set up certain program on its platform and it would stay on its database forever. An option is available to the peoples that they may store any program that are able to execute orders of any kinds and can also respond to various types of parameters such as dates or quantities or anything else that happens in the real world.
• The Reserve Bank of India (RBI) issued notification stating that it does not provide any license or authorisation to any cryptocurrency or digital currencies such as Bitcoin, and thereby, those dealing with the same are responsible for their own risks. This notification was for the benefit of the people ensured people that their actions might have consequences that do not guarantee a legal remedy.
• Traditional law is also an agreement; it is an agreement between peoples and their leaders as for how should people behave. It also acts as a legal contract among individuals. This type of contracts is a form of private law which applies to all the participants. Both types of agreements are enforced by a government legal system.
• Modifications in laws and new laws can only be formed by a voting system as per the Town Charter and written in EtherScript.
• Ethereum laws will automatically naturally fit agreements where value items are digital in nature. Ethers control and control over other digital assets such as websites or software or digital content or cloud storage or other can be enforced directly.
• A complaint to the cyber cell leads to a very slow and gradual help. They are slow to respond, and a probable cause might be the very fact that the RBI has advised against the usage of the same.

The Future of Ethereum in current scenario

Ethereum has one and only possible application i.e., Ether. Hence it is not possible for people to use Ether as a direct payment. But Ethereum brought a major revolution called smart contracts and we will come across it a lot in the future. Smart contract allows a lot of possibility of applications. Smart contracts are computer protocol with the main purpose to execute terms and conditions of a contract so that it can satisfy common contractual conditions without the need of intermediaries. Like this smart contracts can easily be used not just as a tool to set payment-related transactions but also as the deepest layer of any application development.

Conclusion

The preparation of norms for cryptocurrency or virtual currency is in the process by Union Finance ministry. This step has been taken due to latter’s rise in market size and investor base other than reports of related fraud. The government said that it feels the industry must have some government oversight and it can not be left unregulated. The panel does not seem to put a ban of digital currencies as the global market capitalisation for virtual currencies is near about $40 billion.

The protocol of Ethereum was formulated as an upgrade version of cryptocurrency to provide advanced features such as blockchain escrow, withdrawal limits and financial contracts also gambling markets and others through a highly generalized programming language. The Ethereum protocol goes far beyond only currency.

A group named Enterprise Ethereum Alliance (EEA) has been recently connected large companies to technology vendors for working on projects using the blockchain. Ethereum is running parallel to Bitcoin and has a great chance of surpassing it, in order to take over as the primary face of cryptocurrencies or digital currencies.

Reference:

1. http://ethdocs.org/en/latest/introduction/history-of-ethereum.html
2. http://www.business-standard.com/
3. http://www.indiabitcoin.com
4. http://www.newsbtc.com/2017/02/05/reserve-bank-india-bitcoin-warning/
5. https://www.ethnews.com/could-the-reserve-bank-of-indias-proposed-regulations-affect-virtual-currencies
6. http://cybercrimecomplaints.com/services

In this article, Dolvi Oswal discusses the ethical debate revolving around the use of torture in justice delivery system.

Legal Definition of Torture

Torture is defined in the convention under Article 1 as “any act by which severe pain or suffering, whether physical or mental, is intentionally inflicted on a person for such purposes as obtaining from him or a third person information or a confession”. It may be “inflicted by or at the instigation of or acquiescence of a public official or other person acting in an official capacity.”

Under customary international law as well as under international human rights treaties, torture or other cruel, inhuman or degrading treatment is prohibited at all times and in all circumstances. It is a non-derivable right, one of those core rights that may never be suspended, even during times of war, when national security is threatened, or during other public emergencies

Torture is not completely accepted, and however it is practised, none of the countries publicly supports torture or opposes its abolition.

In this paper, I will be discussing the various theories against torture, which are absolutist, conditional and pragmatic torture prohibition. According to the convention it is required for the states to adopt the absolutist approach against torture but according to my understanding there is a problem with adopting this approach, I will be discussing the problems with an absolutist method and will try to propose a better way which will help us to deal with torture.

Various approaches of understanding torture prohibition

There are three different academic perspectives to the question of torture’s justifiability in exceptional circumstances. These approaches are termed as absolutist, conditional and pragmatic torture prohibition.

Qualified torture prohibition

• The first approach is conditional approach also known as qualified torture prohibition. According to them, there are certain situations they necessitate the use of torture to prevent the loss of innocent life.
• These situations should not be dealt with a vacuum rather the use of torture under these exceptional should be monitored judicially and legislatively. The question of torture cannot be left out in a twilight zone; it is an issue which requires open debate.
• The conditionals highlight the primacy of the rule of law both in confronting this challenge and its ultimate regulation.
• One of the most prominent advocates of the qualified prohibition on torture is Alan Dershowitz. He supports the torture warrant system to judicially supervise torture in ticking bomb cases.
• According to him, lethal torture should be used in eminent mass terrorism attack with public support. The democracy has to make the difficult choice of evil- decisions for which there is no good resolution.

Pragmatic prohibition of torture

• The second approach is the pragmatic prohibition of torture, according to it, the absolute prohibition on torture should be upheld with the realisation that, in exceptional cases, public officials will step outside of the legal framework by employing torture to acquire information in order to prevent looming of unlawful violence.
• They want to protect society from acts of terrorism and defend the right to life of the victims of such acts. This approach accommodates exceptional situations alongside the absolute legal prohibition.
• The qualified torture prohibition seeks to accommodate the prohibition, within the law but in contrast, this approach seeks to accommodate the exception extra-legally.
  The extra-legal model could be understood as an attempt to minimise the damages created by state of emergency.
• They choose this model over judicial mechanism so that the judicial system is cleaned in the time of crisis. When the judiciary faces the crisis it tends to go to war and is sensitive to the criticism that they impede the war effort.
• It is argued that a categorical prohibition on torture is also desirable in order to uphold the symbolism of human dignity and the inviolability of the human body. If one believes that absolute ban is impossible, it is, nevertheless, worth upholding the ban for an independent reason.

Absolute torture prohibition

• Last and the one which is protected under the international law is the Absolute torture prohibition approach. This approach is widely known as having customary status under international law. However, this approach has been challenged by politically and morally.
• People who take this approach argue with an ethical perspective. According to them, torture is immoral and inconsistent with a democratic society. Torture is something which can never be justified or excused.
• Jeremy Waldron supports the approach of the absolutist. According to him the prohibition on torture cannot be easily cast aside because it does not exist in a vacuum. Prohibition of torture epitomises a legal archetype that operates not only as a rule but also as a foundation feature of the legal system.
• The rule against torture represents certain policy which governs the relationship between law and force, and the force with which law rules. Waldron denies any framework for in which torture prohibition which includes exceptional situation.
• He introduced the concept of “torture warrant” through the judiciary. The judge while providing the warrant should be unwilling to do so unless there is a rare and compelling case and because of the warrant system, there should be no justification for torturing extra-legally, without having sought a warrant.

The absolute prohibition on torture in cases like ticking bomb case is not really based on morals and logic. This approach adopts the ‘constrained’ utilitarianism to support the legal and practical argument.

Torture has been widely practised, though its use has almost invariably been wrong. This means that the overriding goal of the law ought to be to deter the wrongful use of torture, even at the cost of forbidding the use of torture in those rare cases in which it might be morally justified. The legal prohibition ought therefore to be absolute; for those who think that torture would be advantageous to them will always be tempted to try to exploit any legal permission to use it.

Problem with absolute torture prohibition approach

There are numerous motives why paradigm times of torture are objectionable: the sheer awfulness of suffering; the mortification, terror, and dehumanization; the mental scarring; the diverse types of betrayal. The ethical evaluation of torture in a selected instance may additionally depend upon which elements are present and to what degree. It has to concede that the infliction of that diploma of damage may be permissible, even to save you harms far much less bad than the homicide of one billion humans. The concept that there is such a threshold is entirely incredible.

It has to concede that the infliction of that diploma of damage may be permissible, even to save you harms far much less bad than the homicide of one billion humans. The concept that there is such a threshold is entirely incredible.

There needs to be specific condition laid down to claim that certain type of act is wrong no matter what the consequences are. If it is claimed by the absolutists that there are grey areas in which it is uncertain whether an act constitutes torture, or in which we are indeterminate whether the act is torture, they still have to say whether an act that is in the grey area can be permissible. Noting could justify the act if there is uncertainty. It is suggested by the principle of reasonable caution that we should treat such an act as absolutely prohibited. But if this is the case, we have to know at what exact point the grey area begins and whatever the consequences are we need to claim that all acts at or beyond that point may not be done. Or, if the absolutist accepts that acts in the grey area can be permissible, we then need to know exactly where the grey area ends and absolutely prohibited acts begin.

Nothing could justify the act if there is uncertainty. It is suggested by the principle of reasonable caution that we should treat such an act as absolutely prohibited. But if this is the case, we have to know at what exact point the grey area begins and whatever the consequences are we need to claim that all acts at or beyond that point may not be done.

Or, if the absolutist accepts that acts in the grey area can be permissible, we then need to know exactly where the grey area ends and absolutely prohibited acts begin.
My reason to criticize absolutist approach against torture is on the ground that, it has to draw a sharp line between acts that are prohibited, regardless of their consequences, and acts that may or may not be prohibited depending partly on their consequences. But I don’t think that only the consequences matter. I have said that it might be permissible to torture a terrorist to force him to reveal the location of a bomb or a hostage, but that would be quite different from torturing the relative of the terrorist or someone who is close to him, as a means of extracting the same information. In planting the bomb or capturing the hostage, the terrorist makes him morally liable to be harmed as a means of preventing him from harming innocent people. But his closed one has done nothing to become liable to be tortured as a means of saving the parent’s potential victims.

But I don’t think that only the consequences matter. I have said that it might be permissible to torture a terrorist to force him to reveal the location of a bomb or a hostage, but that would be quite different from torturing the relative of the terrorist or someone who is close to him, as a means of extracting the same information. In planting the bomb or capturing the hostage, the terrorist makes him morally liable to be harmed as a means of preventing him from harming innocent people. But his closed one has done nothing to become liable to be tortured as a means of saving the parent’s potential victims.

In planting the bomb or capturing the hostage, the terrorist makes him morally liable to be harmed as a means of preventing him from harming innocent people. But his closed one has done nothing to become liable to be tortured as a means of saving the parent’s potential victims.

One of the most important objections to the claim that all torture is absolutely prohibited is that it does not distinguish between the torture of wrongdoers and the torture of the innocent. As I indicated earlier, it can be permissible to kill a person to prevent him from committing murder and also that it can be less bad for a person to be tortured than to be killed, they should concede that it can be permissible to torture a person to prevent him from committing murder. Apart from the fact that killing is usually worse, the only significant difference between killing in defense of the innocent and torturing in defense of the innocent is that torture can only be used rarely.

Apart from the fact that killing is usually worse, the only significant difference between killing in defense of the innocent and torturing in defense of the innocent is that torture can only be used rarely.

Conclusion

After analyzing all the three theories and understanding why the absolutist theory cannot be used in it completion, I would like to conclude by stating that there has to laws and certain exception which needs to be given to certain authorities in order for them to use torture in a limited way.There is a need for torture treatment for the greater good of people. With this it can be made sure that there is no illegal use of torture. There are other ways also which are discussed in the paper which can be used so that there is no misuse of torture, but prohibiting torture completely might lead to greater loss as seen in the case of ticking bomb scenario.

In this article, Syeda Muneera Ali of KIIT School of Law discusses Registration Procedure under FSSAI.

Introduction

• Food is the most essential and basic requirement for everybody. Without it, we cannot survive, in any manner.
• Recognising the importance of such a matter, the government has organisations that work rigorously, to ensure that the food we consume is safe and healthy. They understand that something that affects the entire nation, has to be done efficiently and in an expedited manner.
• One such organisation is the Food Safety and Standards Association of India (FSSAI), that runs on the guidelines of the Food Safety and Standard Act, 2006, and is focused on setting the apt standards for food products, in every level.

Why do we need the Food Safety and Standards Act Act?

The basic function of the Food Safety and Standards Act Act is to ensure that there is a healthy and hygienic supply of food and food products. This is both important and essential for such guidelines to be followed, as food is something that affects every individual, irrespective of any discriminating factor. A compromise in any form can lead to devastating consequences for a large number of people. To understand this better, let us see the following example.

Restaurant ‘X’ is famous for its chicken items. However, due to a bad economy, their sale has been limited for the past six months. Due to their loss, they started using the older chicken when somebody ordered, as opposed to buying a fresh stock. Eventually, this led to several complaints by people, who started having food poisoning.

In this example, it is evident that the negligence on the part of the restaurant led to a compromise in several people’s health. Therefore, if such actions are not checked and eliminated, there would be widespread disease and discomfort amongst people. The FSS provides guidelines to ensure efficiency and safety.

What is FSSAI?

• The Food Safety and Standards Association of India (FSSAI) is a body established in the year 2008, under the Food Safety and Standards Act, 2006. The Food Safety and Standards Act is a consolidating statute that relates to food safety and regulation in India.
• With the Ministry of Health and Family Affairs being its parent organisation, the FSSAI has its primary focus on the protection and promotion of public health, through the regulation and supervision of food safety.
• Alongside its headquarters in New Delhi, the FSSAI has six other regional offices in Delhi, Chennai, Kolkata, Mumbai, Cochin and Guwahati.
• The Central Government appoints a non-executive chairperson with a rank that is not below that of the Secretary to the Government of India.

Why do you need to/should register under the FSSAI?

To begin with, every individual who owns any form of food business (i.e. a Food Business Operator), is bound to register with the FSSAI or, have a licence. However, extremely small businesses are exempted from such a rule, provided that they register themselves with the food authority. Some of the primary reasons why you should register under the FSSAI are:

• FSSAI registrations enhance the credibility of the business, as it increases the consumer’s confidence in the food item, in terms of food safety and the quality of the food.
• It aids to the promotions of food innovations.
• It helps to remove multiple regulations on receiving approvals.
• It facilitates trade, without compromising the safety concerns of the people ( i.e., consumers).

What is the eligibility criteria for registrations under the FSSAI?

Primarily, there are three categories, in accordance with the kind of annual turnover of your business. Categorically, they are:

• Basic Registration: For businesses with an annual turnover of Rs. 12 lakhs.
• State License: For businesses with an annual turnover of Rs. 12 lakhs to 20 crores.
• Central Licence: For businesses with an annual turnover above Rs. 20 crores.

The ‘registration’ under FSSAI is primarily limited to the first category, as the other two require licences. Before we proceed further, let us first understand what is the primary difference between these three categories are different from one another.

• A basic registration is for small businesses and there will be no issuance of a FSSAI Licence number, as the product is merely registered, as opposed to it being licensed.
• On the other hand, larger businesses need to get licensed and are given a 14-digit FSSAI Registration Number, that is printable on the back of the product.
• You would be permitted to sell your products throughout the country, irrespective of which category your business falls under.

How to register under FSSAI?

Registering under FSSAI is essentially an easy task. However, keeping in mind that there is a lot at stake, here are the steps to be taken, in order to successfully register your business under FSSAI:-

• Step One: Before you can register, you need to understand which category your business falls into (click here for the categories of businesses that require a basic license, for categories of businesses that require a state license click here , and click here for categories of businesses that require a Central License). This step is the most crucial one, as it determines the kind of license you need.
• Step Two: Registering under FSSAI would require you to have certain essential documents. Your category of registration/license would determine the kinds of documents you really need. Generally speaking, you will need the following documents:

Documents required for a Basic Registration:

• Latest Passport sized photograph of the applicant

• Identification proof (voter ID card or Aadhaar Card)

• PAN Card

• Address Proof- Telephone or Mobile Bill/ Electricity or Gas Bill)

• A Copy of Property papers (if owned)

• A Copy of Rent Agreement and Landlord’s NOC (if rented)

Documents required for a State/Central License:

• Application Form-B duly completed and signed (in duplicate) by the proprietor/partner or the authorized signatory.

• Blueprint or Layout Plan of the processing unit in complete dimension with an allocated area dedicated for operations activities.

• List of directors with their complete address and contact details

• Name and list of equipments and machinery along with the installed capacity (in case of manufacturing/processing units)

• Photo ID and address proof issued by the concerned government authority (Optional)

• List of food category to be manufactured (For manufacturers only)

• Authority letter with the name and letter of the responsible person nominated by the manufacturer along with the alternative responsible person

• Analysis report (Chemical and Bacteriological) of the water to be used as an ingredient in the food product, through a government recognised laboratory on food testing.

• Proof of possession of the premises (Could be a sale deed, rent agreement, electricity bill etc)

• Partnership Deed/affidavit/memorandum and articles of association conferring constitution of the firm.

• Copy of certificate obtained under the Co-operative acts (In case of co-operatives only)

• NOC from the manufacturer in case of re-labellers

• Food Safety Management System plan or certificate (If any)

• Source of milk or procurement plan for milk and milk products processing units (Including details of the milk collection centres)

• Details on the source of raw material for meat and meat processing plants.

• Pesticide residues report of water in case of manufacturer of packaged drinking water, mineral Water, carbonated water from a government recognised lab.

• Recall plan wherever applicable with details on whom the product is distributed (Optional)

• NOCs from Municipality or the local body and from the State Pollution Control Board except in case the unit is established in the notified industrial area for a particular food business (Optional)

• Step Three: The actual registration under FSSAI is a fairly simple process. To begin with, if you fall under the category of a basic registration, you need to fill Form A (see here), along with a self-declaration form (see here), that assures that you will conform to the food and safety guidelines, and submit it to the registration authority. On the other hand, if you belong to the second category, i.e., you would need a state/central license, you need to fill form B (see here).
• Step Four: Once you submit your registration, the apt authority would inspect your business and then approve it, if they feel that your business is in conformation with the required guidelines.
• Step Five: Once everything is done, the competent authorities would issue your registration certificate, or, the required license within a period of 60 days (two months).

What do I do if I receive no reply, or if my license is not received within 60 days?

Typically, if you should receive a reply or some form of feedback. However, in a case of no response or delay in the issuance of the license, please remember the following important points:

• Please remember that this section is applicable ONLY if you have attempted to register at a prior stage.
• If you do not receive any communication, you are permitted to start your business. If your license has been delayed, you may start without waiting for further communications. However, please remember that you might be subject to inspections.

Conclusion

Food security and safety are a major concern in every place in the world. Food, being an absolute necessity, should always be safe and fit for consumption. Any compromise in this can lead to dangerous consequences. FSSAI has made it compulsory for all food-related business to register, or get a license, as it hopes to prevent these casualties. It is always advisable to be on the right side of the law. So, if you have a passion for starting a food business, go ahead and live your dream. But remember to do it the right way, because wouldn’t you prefer being unstoppable and brilliant in your industry, as opposed to being penalised and losing everything you’ve ever dreamed of and worked for?  

References

1. http://foodsafetyhelpline.com/2014/05/what-is-the-procedure-for-obtaining-a-license-as-per-fssai-guidelines-is-there-a-separate-application-form-for-renewal-of-the-license/
2.  https://www.legalraasta.com/fssai-license/
3.  http://foodsafetyhelpline.com/2016/04/top-queries-on-fssai-food-licensing/
4. http://foodsafetyhelpline.com/2016/03/fssai-licensing-registration-queries-answered-foodsafetyhelpline/
5. http://foodsafetyhelpline.com/2014/01/what-is-the-procedure-for-registration-of-a-food-business-what-kind-of-documents-are-required/  

In this article, Sachin Vats Discusses how to lodge a complaint against Banking Malpractices 

Our country has seen a significant amount of economic development with the development of the banking sector. But many a times cases related with negligent behaviour of the banking professionals have been seen which violates the interest of the consumer. It is the consumer around which all the banking activities revolve but even then malpractice are done against them. We have a lot of ways to safeguard our interest in the banking services.

Malpractices Done by a Bank

If a customer faces with any of the problem given below then it will be considered as an improper, illegal and negligent behaviour of the banking officials.

• Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.
• Non-acceptance, without sufficient cause, of small denomination notes and coins for charging of commission in respect thereof.
• Non-payment or delay in payment of inward remittances.
• Failure to issue or delay in issue of drafts, pay orders or bankers’ cheques.
• Non-adherence to prescribed working hours.
• Failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents.
• Delays, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank.
• Complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters.
• Refusal to open deposit accounts without any valid reason for refusal
• Levying of charges without adequate prior notice to the customer.
• Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations.
• Non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees).
• Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government.
• Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities.
• Forced closure of deposit accounts without due notice or without sufficient reason.
• Refusal to close or delay in closing the accounts.
• Non-adherence to the fair practices code as adopted by the bank or non-adherence to the provisions of the Code of Banks Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank.
• Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
• Any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.

Grievance Cell of banking institutions

• All the banks have an exclusive unit called “Grievance Cell” which deals with the complaints of their customers. The Cell is headed by an executive equivalent to the rank of a General Manager. Any customer can visit the Bank and meet the concerned officials to sort out the problem.
• A Toll-Free Number is also provided by the respective banks to lodge any complaint related to the services rendered and others issues with the bank. A Complaint Reference No. or Registered Id is given to the customer.
• Banks have also started a Real Time Monitoring System for the complaints received centrally through the Customer Relationship Management (CRM). The complaint is directly registered to the Bank’s website.
• After lodging any complaint with the bank, a customer needs to wait for 30 days to give a suitable reply or offering any solution to the concerned problem.

National Consumer Helpline (Jago Grahak Jago)

                                   “NATIONAL TOLL-FREE NO. — 1800-11-4000”

• National Consumer Helpline has entered into convergence with the several banks where complaints related to banks are sent to the respective banks through electronic mail for immediate redressal.
• The National Consumer Helpline provides with the Three-Tier detailed knowledge of lodging any complaint against any malpractice of the bank. First, they complain to the respective bank, next to the Banking Ombudsman appointed by the Reserve Bank of India and then the Legal route for the case concerned.
• However, all the banks have not yet become the part of the National Consumer Helpline.

Can We Complain to Ombudsman of Banking?

• The Banking Ombudsman Scheme was introduced under Section 35A of the Banking Regulation Act, 1949 by the Reserve Bank of India with effect from 1995. It was revised in 2002 and further superseded by the Scheme of 2006. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. It covers all the Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-Operative Banks.
• “Procedure for filing Complaint”: A complaint with the Banking Ombudsman can be filed simply by writing the problem on a plain paper without following any particular format. Now, One can send an Electronic Mail or file it directly on the website. The complaint can be filed by any authorised person or representative other than an advocate. There is no any fee for filing or resolving customer’s complaints.
• Compensation:  the amount that will be paid by any bank to the complainant for the loss suffered is limited to the amount arising directly out of the act or omission of the bank or Rs. 10 lakhs, whichever is lower.
• The Banking Ombudsman endeavours to promote through conciliation or mediation, a settlement of the complaint by agreement between the complainant and the bank named in the complaint.

Tracking Your Complain

• All the banks have their portals for tracking any complaint registered with the Grievance Cell using their Registered Id or the Complaint Reference No. provided to them at the time of registering. So, the complaint can be tracked using Grievance Redressal Mechanism of the respective banks.

What Legal Route to take against the Bank?

• If any complainant is not happy with the settlement offered by the Ombudsman then he can file an appeal before an appellate authority within 30 days of the decision given by the Ombudsman.
• The Appellate Authority here can be the Deputy Governor of the Reserve Bank of India, the Consumer Redressal Forums or one can go to the Civil Court of the required jurisdiction.

Filing a complaint in the Consumer Forum

• A complainant can definitely approach to the court but only after raising the matter with the Grievance Cell of the bank and the Ombudsman. The case will be considered as “Premature” if it is not followed in the above said sequence.
• Complainant can approach the Consumer Court but there is a hierarchy to approach the Consumer Court depending upon the financial damage incurred due to malpractice of the bank. The case for financial damage upto Rs. 20 lakhs are filed before District Consumer Redressal Forum. If it is above Rs. 20 lakhs but less than Rs. 1 crore the it has to be taken to the State Consumer Disputes Redressal Commission. All the cases having financial damage above Rs. 1 crore have to be taken before the National Consumer Disputes Redressal Commission.

Can you sue a Bank for Negligence or Emotional Distress

• Suits against Bank Officers and the Directors are treated differently from the cases of negligence related with Doctors and Accountants. The decisions taken in good faith by the banking officials are protected from liability. Professional Negligence in Indian Banking Sector can be sued by the customers in civil suits.

• Emotional Distress is a state of mental suffering caused by an extreme experience such as anxiety, panic, depression and suicidal thoughts. The loss happening due to emotional distress makes a bank liable and has to give compensation upto Rs. One lakh in it under Ombudsman Banking Scheme. The suit can also be filed in civil courts.

Malpractices done by Banks during Demonetisation

• The involvement of officials in violating the directions given by the Government and the RBI has been reported by the Finance Ministry. The ministry has asked the respective banks to give details of the officials who were illegally involved in changing currency notes and did not abide by the law or Reserve Bank of India’s direction.
• The vigilance proceedings against the Directors have been carried out by the Finance Ministry. The departmental proceedings against officials are carried out by the bank itself. The random checks by the Enforcement directorate of select  branches also feel that there could be RBI inspection also to check whether there were any lapses at branches on bank’s side.

Are  Banks Liable For Fraudulent Transactions?

• The Reserve Bank of India in August, 2016 said that customer will have no or zero liability in case of fraud being committed because of bank’s or third person’s breach. Customer will be liable only if there is involvement of customer himself.
• The customer’s liability will be limited to a maximum of Rs. 5000 if he reports within 4 to 7 working days. If customer reports beyond 7 working days, customer liability will be determined based on bank’s board approved policy.

Charter of Customer Rights: RBI’s guidelines on protection of bank customers

• The Reserve Bank of India in 2014 released the “Charter of Customer Rights” which enshrines broad and overarching principles for the protection of bank customers and provides five basic rights:
• Right to Fair Treatment.
• Right to Transparency, Fair and Honest Dealing.
• Right to Suitability.
• Right to Privacy.
• Right to Grievance Redress and Compensation.
• The RBI has advised the Indian Bank’s Association to formulate a “Model Customer Rights Policy” covering all the principles enshrined in the charter.

In this article, Ashima Bhargava of Amity Law School, Lucknow discusses What system does UK Police provide to the people to report Fraud and Scam.

In the UK, earlier Fraud was not counted as a crime. Even since thirty five years ago, when the crime survey was started, fraud was not considered as a significant threat and the internet also had yet to be invented. But today if we wish to have a look at the percentage, we notice that how crime has changed, with fraud which is now considered the most common experienced offence. The amount of fraud that is taking place now is probably in epidemic proportions.

Multiple variants of Fraud observed

1. Bank and credit account fraud: meaning criminals accessing bank accounts, credit cards or fraudulently using plastic card details.
2. Advance fee fraud: crimes where the victim has been tricked into handing over cash after a communication, such as a lottery scam.
3. Non- investment fraud: criminals conning a victim into buying something, often online, perhaps through a bogus call or an email.
4. Other frauds including investment or fake charity scams.

What constitutes a Scam

On the other side, scams are defined as an illegal plan for making money, especially one that involves tricking people. Scams be made through an investigation or a whistle blower. Like frauds, there are different types of scams also, they are,

1. Lottery, Sweepstakes and competition scams: it’s like an email, text message or a sweepstake company arriving out of nowhere.
2. Dating and romance scams: Scammers create fake profiles and illegitimate dating websites.
3. Computer hacking: phishing emails are commonly used by scammers to trick you into giving them access to your personal information by encouraging you to click on the link or an attachment.
4. Online shopping, classified and auction scams: Scammers like shopping online for victims.
5. Banking, credit and online account scams: they send emails or text which appear to come from your bank account but are actually not.
6. Small business scams: if you own a business, you can be scammed for issuing fake bills for any advertisement or a product.
7. Job and employment: these scams involve persuading the person to work from home or a business opportunity.
8. Golden opportunity and gambling scams: scams often begin with an expected phone call and initiate the person to not to miss that phone call.
9. Charity and medical scams: they take undue advantage of people on account of their health.

From where does the statistics related to Fraud and Scams come from in the UK?

• There are two main sources used in the official statistics on Fraud: police recorded crime and the crime survey for England and Wales(CSEW). Information available from each source differs, as does their coverage.
• The CSEW is a household survey, and as such information collected is restricted to crimes affecting the resident adult population. In comparison, police recorded crime has broader coverage, including fraud against businesses and other organisations which are not covered by the CSEW.
• Though the crime figures of the fraud offences are recorded by the Action Fraud as well as the industry bodies who refer offences to the police via the National Fraud Intelligence Bureau (NFIB) based at the city of London police. However, the main difference between the two sources arises from the fact that the most fraud offences and cyber crimes do not come to the attention of the police.
• As a result, police recorded crime data give a very partial picture of the extent of fraud while CSEW estimates provide a more complete picture of the threat. The data below shows the rate of crimes in England and Wales in the past 12 months.

The groups in society which are likely to be the victims of frauds and scams.

• The victims of fraud were more likely to be higher in the age group of 45 to 54 years at a percentage of 7.9% as compared to the people of 16-24 years who were at a percentage of 5.0%. The crime ratio in these type of crimes are different from other types of violent crimes where usually the younger crowd is targeted more.
• Unlike violence, fraud victims were higher in the households where the household income was of €50,000 than people whose household income was less €10,000.
• Individuals in managing positions and professional occupations were more likely to be a fraud victims i.e. 8.0% than individuals in normal or manual occupations i.e. 5.3%, full-time students had the percentage of 4.4% and those who have never worked or are in long term unemployment, they are 3.8%. This is in contrast to violence and burglary because here mainly the young adults and student households are at a greatest risk of being victims.
• The fraud ratio in some cases represents the place where the person resides. For example a person residing in rural areas is more likely to be a victim of fraud than a person living in urban areas. The reason for this most probably simulates a relation to the education level of those areas. People in urban areas can easily read the terms and conditions document before signing but the people from rural areas, due to lack of education, end up signing the document based on trust upon the fraudster.

Other than Frauds, scams are also very prominent in the city of England. Scammers hack the computer of the other person and use the information for their own benefit. Scams messages can take any form. Copycat websites are made where a victim may genuinely click on the link believing it to be true. Online shopping websites are also the source of scamming a person for example  when a person orders something online like from Ebay, when he selects all the things and do the required things including online payment. It is possible that scam can occur there and being fake, stating that their order has been despatched. In this way a victim can be scammed.

Therefore in order to report for such activities, United Kingdom has a national reporting centre called ACTION FRAUD. Here all the complaints regarding frauds and cyber crimes are reported. It works together with the government to punish the fraudsters.

About Action Fraud

Action Fraud is UK’s national reporting centre for frauds where you can report if you have been the victim of any fraud, scams or cyber crime. There is another centre also called National Fraud Intelligence Bureau (NFIB) which works alongside the Action Fraud and the London Police which is the national policing lead for fraud. They work closely with their partners in the government and the police to run the fraud reporting centre to the people of the country. Although I have already specified that what kind of frauds are there but to be more specific, I would like to define with what kinds of frauds does the Action Fraud deals with.

Identity fraud and Identity theft

Identity theft is when your personal details are stolen and Identity fraud is when those details are used by the other person to commit fraud.

A-Z of fraud

To help understand which fraud you have been affected by, they have categorised it in alphabetical order.

Online fraud

Some fraudsters rely on the internet to commit their crimes. Learn about some different types of internet frauds that and how to protect yourself and get safe online.

Individual fraud

Individual fraud could be any fraud which does a direct attack on the person.

Corporate fraud

It could be any fraud which is committed against a business.

Advance fee fraud

It is when fraudsters target victims to make advance or upfront payments for goods, services and financial gains that do not materialise.

The procedure to report fraud and cyber crime

There is a business Reporting tool. The Business Reporting tool enables all the companies to report the frauds and internet crimes more efficiently.

If one wants to edit the report that he has sent to the Action Fraud, he can do the same by following the required steps:

1. To update a fraud report, click on the link where you have submitted on the Action Fraud website. It is mentioned there. One can easily find.
2. Then enter the security code and enter the police reference crime number(CRN) and passwords in the boxes provided.
3. Then you will be able to add on more information that you wish to.

• One can report by directly speaking to their specialist fraud advisers by phoning on 03001232040. The people there would be able to provide help and give proper advice also.
• People who are chased by scam emails are required to immediately report to the Action Fraud.

If we notice, Action Fraud is just a body sitting under the NFIB. It has only a recommendatory powers. Action Fraud does not investigate the cases neither it can help in the progress of the case. All the reports are further sent to the National Fraud Intelligence Bureau.

National Fraud Intelligence Bureau

As we know that the NFIB sits alongside the Action Fraud and the London police. All the reports from the Action Fraud are sent to the NFIB and then they deal with millions of crime reports including frauds and scams and aim to punish the serial offenders, organised crime gangs and established and emerging crime types. The NFIB uses the system called “know Fraud”. This is an extremely advanced police intelligence system with the ability to process vast amounts of data to pinpoints patterns and linkages in offending.

NFIB crime reviewers and analysts see opportunities for law enforcement or partner agencies to take action, where crime packages are disseminated  Law enforcement and partner agencies then decide on the next most appropriate action and take responsibility for any resultant investigation. Not all fraud reports can result in an investigation so the NFIB seek to disrupt the fraud enablers that are causing harm by working with service providers to take down services abused by fraudsters. The NFIB will also alert members of the public and counter fraud agencies or emerging crime types, new methodologies and specific cases.  

National Fraud Intelligence Bureau Process

Conclusion

Although there is a proper system to report about the crimes in the United Kingdom, but the main focus should be towards the people who are not as powerful as the rich people because they are also affected by the same. The laws should work in such a way that it should be able to seek to every person through its wide network. We all know that it is not an easy task to punish every criminal but it would also be unfair to punish someone who has done no wrong.

In this article, Yash Kansal discusses the provision of civil defamation in Indian legal system.

Defamation

It is an injury to the reputation of a person i.e. harm made to the goodwill or character of an individual. Under English law, it is of two types’ libel & slander. Libel is a representation made in a permanent form which means it must be published whether through writing, printing, picture, statue etc. Whereas slander is a representation made in oral or transit form for e.g. by spoken words or gestures. In English law, libel is a crime and tort both whereas slander is only a civil wrong.

Defamation under Indian Jurisprudence

In India, there is no such distinction of the statement made whether orally (slander) or in permanent form (libel). Both are an offence as civil wrong under the law of torts and crime under Section 499 of Indian Penal Code, 1860 & its punishment is extended up to simple imprisonment of one year or fine of one thousand rupees or both under the code. However, it is the choice of the plaintiff whether he wants to file a civil suit for compensatory remedy or a criminal suit for punishment. In this article, you will read about essentials, defences and other important facts under civil law.

Who can file a suit for civil defamation?

In Harash Mendiratta v. Maharaj Singh [1], it was held that an action for defamation was maintainable only by the person who was defamed and not by his friends, relatives and family members.

Defamation refer to group of individuals

When a defamatory statement is made against the class of persons or group of individuals then it does not amount to defamation. Such as publication made against lawyers, doctors or any other particular class of society then no member of that group can sue unless he proves that the statement refers to him. (Knupffer v. London Express Newspapers Ltd.) [2].

Intention to defame

It must be noted that intention to defame is not necessary. It is immaterial that the defendant does not know the facts or he believes himself to be. If the injury to the reputation is made then the defendant will be held liable. In Morrison v Ritihie & Co. [3], the defendants by mistake published a statement that the plaintiff had given birth to twins whereas the plaintiff was married only two months back. Even though defendants were ignorant of this fact, they were held liable. But mere hasty expression spoken in anger or vulgar abuse to which no hearer would attribute any set purpose to injure the character would not be actionable (Parvathi v. Mannar) [4].

Essentials of defamation

• The statement must be defamatory: It means, the statement must result in lowering the reputation or moral character of a person in the eyes of society or any other person. For instance, in P. Choudhary v. Manjulata [5], a local newspaper published a statement regarding desertion of a girl (Manjulata) who is 17 years old with a boy named Kamlesh after attending night classes. The statement was untrue and without any justification. Such publication also affected the reputation of her family as well as her marriage prospects so the defendants were held liable for the same. Sometimes, a statement or representation made is not defamatory & person making the statement believes himself to be innocent but due to some secondary or latent meaning statement results to defamation. For example, in a case of Cassidy v. Daily Mirror Newspapers Ltd. [6], the court held that obvious innocence of the defendants was no defence.
• The statement must refer to the plaintiff: If the statement made by the plaintiff is in good faith or he doesn’t intend to defame the plaintiff then he shall be held liable if it refers & injures the reputation of the plaintiff. In Hulton & Co. v Jones [7], a fictional article was published in a newspaper in which imputations were cast on the character of a fictitious person named Artemus Jones. A person with the same name filed a suit as his friends and relatives believe that the article referred to him. The defendants were held liable even the publication was made without any intention to defame.
• The statement must be published: It means that the defamatory matter must come into the knowledge of the person other than the person defamed. If a letter containing defamatory statement sent to the plaintiff and no others person read it then there is no defamation. There must be communication to some third person to prove defamation. In Mahendra Ram v. Harnandan Prasad [8], the defendant wrote a defamatory letter in Urdu which is not known to the plaintiff. The letter was read over to him by a third person. It was held by the court that the defendant was not held liable unless it was proved that at the time of writing the letter defendant knows about the fact that plaintiff was unable to understand Urdu script and it would necessitate reading of the letter by a third person.

However, the following defences are available to the defendant against defamatory liability.

• Truth: If the statement made or published is true and the defendant is able to prove the same then he has a complete defence under civil law. If the statement is substantially true & accurate but some minor mistake is made without any intention to harm the plaintiff then he cannot be held liable. Such as in Alexander v. North Eastern Railway Co. [9], the plaintiff was without a ticket and was sentenced to fine of one pound or 14 days imprisonment whereas in the notice by railway authorities it was published that the fine of one pound or three weeks imprisonment was imposed. The defendants were not held liable.
• Fair Comment: Any fair comment on matters of public interest is a defence against an action for defamation. Matter related to public companies, courts, government administration, public representatives, public novels etc. are considered to be matters of public interest. If the comments were made after the conspiracy to cause harm to plaintiff by which he loses focus on his performance is actionable (Gregory v. Duke of Brunswick) [10].         
• Privilege: There are two kinds of privilege i.e. absolute privilege and qualified privilege. In absolute privilege even the statement is false no action will lie against any person. This privilege is available in respect of Parliamentary Proceedings, Judicial Proceedings and State Communications. Whereas in qualified privilege there are certain occasions where the defendant is exempted from defamatory liability if the statement made is not false. For example, for self-interest a shopkeeper order his employee not to sell goods to a person named X as there is no reliability on his honesty for payment then the shopkeeper has done no offence.    

Conclusion

In my view, defamation is a serious offence as goodwill and reputation is earned during the passage of time. Injury to reputation lowers the image of a person in society and once it is harmed it cannot be regained. However, our law provides remedies under both civil and criminal law. Compensation of money might be not enough to the plaintiff but still, it is only remedy which is available in a civil suit.

References

[1] 2002 Cr. L.J. 2651

[2] (1944) 1 All E.R. 495

[3] (1902) 4 F. 654 (Scottish Court of Decision)

[4] I.L.R. (1885) 8 Mad 175, 180

[5] A.I.R. 1997 Raj. 170

[6] (1929) 2 K.B. 331

[7] (1910) A.C. 20

[8] A.I.R. 1958 Pat. 445

[9] (1885) 6 B & S. 340

[10] (1843) 6 M. & G. 205

{[1-10] with special ref. to law of torts by R.K. Bangia}

In this article, Shrey Chakraborty of Symbiosis Law School, Hyderabad discusses What actions can you take against a public servant who insults or hit you.

It has not been uncommon for those in power to abuse and misuse the power they have been vested with. So will the ones in power will continue to oppress, suppress and exploit the ones who gave them this power in the first place? No. We live in a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC. That’s what the Preamble of the Indian Constitution states. Then why are the people still being oppressed? It’s simply because of lack of awareness of a person’s legal rights and remedies. In this article, I would be dealing with the mechanisms which a person can resort to if a public servant has hit or insulted you.

Why do we not speak out?

People usually dislike going to a government office or for that matter, dealing with a public servant. It has become a prejudice in the minds of citizens. But that prejudice is there for a reason. It holds a kernel of truth. We don’t like going to a government office or dealing with a public servant because of their laid back attitude, red-tapism, corruption, bureaucracy and the list goes on. But why do we not speak out about it? Why do we not speak out about if a public servant insults you in a government office? What if the same public servant hits you? Some might object then. But why is it so? Well, mainly because we are apprehensive that it might make the situation worse for us and so we hold back ourselves. We must know the remedies that are available to us if a public servant hits or insults us. But before knowing the mechanism and remedies available to a person against a public servant, it is important to know as to what exactly does a ‘public servant’ mean in the legal language.

Who is a public servant?

The word ‘public servant’ has been defined in Indian Penal Code and this definition is an exhaustive one. According to the provision, following are the categories of authorities that would fall within the purview of a public servant:

1. Every Commissioned Officer in the Military, Naval or Air Forces of India;
2. Every Judge including any person empowered by law to discharge any adjudicatory functions;
3. Every officer of a Court of Justice (including a liquidator, receiver or commissioner);
4. Every juryman, assessor, or member of a panchayat assist­ing a Court of Justice or public servant;
5. Every arbitrator or other people to whom any cause or matter has been referred for decision or report by any Court of Justice, or by any other competent public authority;
6. Every person empowered to keep another in confinement;
7. Every officer whose duty is to prevent offences, give information of of­fences, bring offenders to justice, or protect the public health, safety or convenience;
8. Every officer who is empowered to conduct elections.

The list goes on. To seek more clarity on this exhaustive definition, click here. This section of IPC provides as to who all can be regarded within the umbrella of ‘public servant’. This means that actions can be sought against the above mentioned public officers who in any way, hit you or insult you. The next question which pops up is that do we have sufficient provisions of law that can address our problem at hand?

Is there any provision in Indian law that sufficiently addresses this issue?

• When a public servant fails to discharge public obligations and instead, engages in in certain wrongdoings which as a consequence, causes injuries to the person is referred as malfeasance. Example – A Municipal Authority appointed a new head – X. This manager, along with his other responsibilities, is required to sign contracts with 3rd parties for certain social welfare projects. A, an entrepreneur, approached X for a social welfare project contract which would benefit both the parties. However, X accepts to sign on the contract on the condition if A pays X a certain amount. Thus, the conduct of X in the capacity of a public servant, amounts to malfeasance.
• Similarly, in India, any wrongdoing by the public servant would amount to malfeasance. However, in India, malfeasance per se, has not been defined anywhere but there are certain legislations which provide for circumstances when a public servant abuses you using his authority.
• The 22nd Chapter of IPC prescribes a punishment of 2 years of imprisonment or a fine or even both for the offence of insult. This offence is a compoundable offence as per the Code of Criminal Procedure 1973. This means the offence of insult can be compounded by the person who has been insulted.
• Example – A, who is seeking help to file a complaint in the Police Station, asks B, who is an officer there. B, instead of helping him, insults him in front of everyone. Due to this, A goes to the court of law since B insulted him. Since insult is a compoundable offence, B can enter into a compromising agreement with A so that the charges against him are dropped.
• Similarly, Indian Penal Code also lays down provisions for circumstance when you are unlawfully being hit by another. In such a situation, the person who has hit you will again be liable for punishment for imprisonment for a term extendable to 3 months or a fine extendable to Rs.500 or even both.
• The Indian Penal Code also says that if a public servant is not acting in accordance with the way he is supposed to conduct himself or contrary to any direction of law with an intent to save the person from punishment, then such a person will be liable for punishment of imprisonment of 2 years or fine or even both.
• Also, if a public servant is making a report contrary to law in a judicial proceeding, he will be liable for punishment of imprisonment of term of 7 year or fine or both.
• As per Section 166 of Indian Penal Code, a public servant who disobeys law with an intent to cause injury to another is liable to be punished with a term of 1 year of imprisonment or fine or both. So if a public servant hits or insults you, this provision of IPC will be attracted.

• However, in Indian law, there is no provision which, in particular, makes a insult, assault or any wrongdoing by a public servant, as an offence. But there are a few guidelines and codes of conduct for every public servant which they are required to abide by.
• So, there are indeed a few provisions of law which address the current problem but do these provisions cover every aspect of the problem? Do they properly address the problem we face when hit or insulted by a public officer? No, these provisions do not sufficiently address the problem we face when a public servant hits or insults you. So what do we resort to?

What is the solution?

As mentioned above, there are a few provisions which make the act of hitting or insulting as an offence. So, the first step one must take is reporting the act of the public servant to a nearby police station by registering a FIR. By registering a FIR, the first step of a legal proceeding gets initiated. Once the legal proceeding is initiated, the due process of law is followed and the rule of law prevails. But the problem does not lie in that ever long (sometimes never ending) judicial process.

One must understand that the very fact that you register a FIR makes you susceptible to another similar situation. After all, the police officer is also a public servant. In such a case, what one must do is register a FIR against that police officer in a police station. But who would accept that the police officer is the one who has been charged with the offenses? What if the public servant who is supposed to protect people from all the evils in the society becomes that evil? What if no one accepts the complaint? In such a case, you can go to the District Superintendent of Police who will look into the matter and also order the registration of FIR.

However, if both these avenues don’t turn out to be very effective to the victim, then you can approach the nearest Judicial Magistrate or even approach the National Human Rights Commission, or, if available in your state, the State Human Rights Commission. As we can see, there are quite a number of ways by which you can let the concerned authorities know about your grievances.

What is Police Complaint Authority (PCA) and how does it work?

However, if you have knocked all the above-mentioned doors and still nobody answered, even then you must not give up! There is still one door left to knock and those are the doors of Police Complaints Authority. In 2006, a landmark judgement passed by the Apex Court in the case of Prakash Singh v. Union of India, gave a directive to all the states to create Police Complaints Authority in their respective states. This was done because there was a dire need of preserving the rule of law in the functioning of the State. The problem is that only 18 states have complied with this directive so far. What’s worse is that only a few are aware of this golden door.

Since this is a state subject, every state has its own Police Complaint Authority Regulations. As per most of these PCA Regulations, following are basic functions that most of the PCAs have in common:

• Receive complaints against Police Officers who have been alleged of the wrongdoings.
• Enquire into those allegations of misconduct.
• Receive and enquire into the complaints of non-registration of FIRs.

Conclusion

Now, are we still to assume that there is no rule of law and that the ones with power will keep oppressing the ones without that power? Constitution is the supreme law of India and no one is above it. Rule of law stands as a pillar of the Indian Constitution and it cannot be taken away. No matter who you are, man or woman, poor or rich; the law will always be above you. No one is above the law, not even the lawmakers or the law-enforcers. Even if you are a policeman, you will be accountable before the law.

So yes, if a public servant breaks the law, that person will be punished for it, just like everyone. There is no point of being apprehensive and holding back if a public servant hits you or even verbally insults you. If he has been rude, behaved inappropriately or did not do his duty the way he should have, his can always be punished by his seniors

The State must protect the interest of its subjects. No State can work in seclusion. It must work with the people and for the people and only then can the nation grow as a whole.

References

1. Section 21 of Indian Penal Code, 1861.
2. Section 504 of Indian Penal Code, 1861.
3. Section 320 of Code of Criminal Procedure, 1973.
4. Section 350 of Indian Penal Code, 1861
5. Section 352 of Indian Penal Code, 1861.
6. Section 217 of Indian Penal Code, 1861.
7. Section 219 of Indian Penal Code, 1861.
8. Writ Petition (civil) 310 of 1996.

In this article, Shubham Singh of KIIT School of Law, Bhubaneswar discusses All You Need To Know About The Requirement of KYC Norms.

What is KYC?

KYC stands for ‘Know Your Customer’ or ‘Know your Client’. It has been declared as a compulsory process for every bank or financial institution by RBI and is a process to get information about the identity and address of the customer. This process has been made compulsory by RBI before opening an account, to guarantee that there must not be any misuse of any service provided by the banks. As per the order by RBI, banks have to update the KYC details information at regular intervals of 2,8 or 10 years depending on the risk of the profile of the customer.

What is the requirement of KYC?

KYC is aimed to make it easier for the banks and other final institutions to know and understand their customers. Implementation of KYC guidelines for every new bank account was made compulsory by RBI in the year 2002, which came into force from 1st July 2005. KYC Norms were made compulsory, aiming to restrict money laundering and to stop terrorist financing.

RBI issues guidelines for KYC, through Banking Regulation Act, 1949 Section 35A along with Prevention of Money Laundering (Maintenance of Records) Rules, 2005. If there would be any violation or contravention by any bank, it would be subject to penalty under the Bank Regulation Act, 1949.

Types of KYC

• C-KYC

It stands for Central KYC. With uniform norms and inter-usability, central KYC registry across all financial sectors has been set up as a depository for KYC records. This new process, without asking customers to provide multiple KYC undertakings will help banks, mutual funds, brokerage firms and depository participants offer services. After complying with the new CKYC norms, a unified customer identification code is generated, and it will be used whenever KYC will be required. This initiative has been started for the purpose of centralising and streamlining KYC process. Duplication of KYC will be avoided after this, less scope of forgery will be there. The government has authorised the Central Registry of Securitization Asset Reconstruction and Security Interest of India(CERSAI) for performing the functions of Central KYC Records Registry(CKYCR), also the duty of receiving the details and safely storing them and retrieving the KYC records in the digital form of a ‘client’. Earlier customers have to provide KYC documents separately to every financial institution but after the introduction of one-time centralisation process, CKYC, customers will only have to complete the process once and it can be used for all different processes like opening savings bank accounts, buying life insurance or investing in mutual fund products.

• e-KYC

e-KYC stands for electronic KYC. The service of e-KYC can only be used by those who have Aadhar numbers. Customers by their own consent needs to authorize their Unique Identification Authority of India (UIDAI), to reveal their identity or address information through biometric authentication to their respective bank branches or business correspondent (BC). After this the UIDAI sends the customers data comprising of customer name, age, gender, and photograph electronically to the bank. It is a valid process for KYC verification and under PML Rules, information provided under e-KYC process will be considered as an ‘Officially Valid Document’.

What are the objectives of KYC Norms?

The main objectives are to:

• Stop money laundering,
• Terrorist financing and,
• To understand their customers to and to avoid any risks in future.

Steps taken by RBI for proper implementation of KYC Norms

When the guidelines regarding KYC were introduced in the year 2002, the proper implementation was not made possible, in order to complete their goal RBI asked banks to adopt some measures for the existing bank accounts also.

Some of these are

• Public Notices were published in the national newspapers.
• Identification was made compulsory for zonal customers.
• Those customers who were not complying with the norms were forwarded with individual notices.
• Also, a final notice for ensuring proper documentation within 7 days from that particular day in the newspapers.

Use of KYC in some Institutions

For Banks While opening an account

While opening a bank account customer need to present any of the 6 identification documents and approved by the government of India.

• PAN Card,
• Passport,
• Driving License,
• Voters’ Identity Card,
• Aadhaar Card issued by UIDAI,
• MGNREGA Job Card.

Any one of these documents containing address is sufficient for opening an account.

• While taking loan:

For taking loans there are other documents that are required to be presented for approval of loan.

For Example, in case of home loans, a bank requires identity proof, residence proof and age proof, bank statements for the last 6 months, salary slips of the last 3 months, certificates of educational qualifications, and others. The requirements of these documents are different for salaried individuals, self employed-businessmen, self employed-professionals ornon-residentt Indians.

• For Companies or Business Entities

Business entities that want to purchase Company Credit Reports (CCR), have to provide any of these documents in the company’s name:

1. Bank Statement,
2. Electric bill,
3. Telephone bill

• For Telecom services such as Airtel

Airtel has started an Aadhaar based e-KYC solution. It is an instant verification process, under which a customer who is taking a new postpaid or prepaid connection, will have to submit and verify themselves using Biometrics, i.e., an iris scan or  a fingerprint scan for using the services. The details given by the customer will be matched with the database of UIDAI instantly, and when the information is validated, the connection will be activated instantly in the name of the customer. The retailer or representative will also be registered under Aadhaar and the process will be fully secure.

Key criteria of KYC policy

• Customer Identification Procedures,
• Customer Acceptance Policy,
• Monitoring of Transactions,
• Risk Management,

These are careful measures, taken by banks and financial institutions for ensuring that no fraud take place regarding any transactions taking place in the banks. Proper checking of documents will be done in order to complete the requirement of KYC Norms.

There will be variation in the procedure for the normal customer and the customer who use the service through the Internet or Mobile Banking, for the proper understanding of its customers by the banks.

For foreign students, non-resident accounts can be operated but there are special procedures relating to it.

If the customer will not comply with the bank then it could result in the freezing of the customer’s account. The policy says that 3-month prior notice stating the subject matter must be forwarded to the concerned customer, the bank can partially freeze the account if the notice has been given. All the credits and debits will be prohibited so that the account could not be operated further. It will depend upon the bank to either close that account or not, but the bank is obligated to mention the reason for closing the bank account.

If the bank would find a suspicious account i.e., if the identity of the account holder would be false or unclear, then the bank must file a Suspicious Transaction Report (STR) at Financial Intelligent Unit of, Department of Revenue, Ministry of Finance, Government of India.

What are the risks involved due to KYC?

There are different types of risk involved for the banks in the proper implementation of KYC:

1. Reputational Risk

Some instances like if a terrorist resort to identity theft and if they open a bank account in a particular bank and later on if the public will come to know about it then this would create a sense of insecurity among the public and this would harm the bank’s reputation and it would be hard for the bank to attract customers in future. Hence, banks must keep proper care of the norms.

2. Operational Risk

This can be considered as a risk of loss due to failed internal processes of the bank, people, and systems or also from external events.

3. The Risk that arises legally:

If some business or a bank would get involved with any illegal activity it will attract penalties and adjudications also. If a body does not follow KYC norm it would be subject to penalty.

4. Financial Risks:

If a bank without complying with KYC Norms, gives loan to a customer and later the bank fails to identify the customer then it will be hard for the bank to retrieve its money, so it will result in a financial loss.

5. Concentration Risk:

With an aim to attract more customers its usual tendency of banks to focus more on a particular geographical area or involve in a particular kind of business activity. It would lead to great risk if there will be any sudden downfall in that focused area.

Documents required from the customers:

For identifying a customer, documents are very important. The documents varies for Banks, Companies, Partnership firms, and so on.

For Individual Accounts:

For opening an individual account, 6 documents are declared as ‘Officially Valid Documents’ by Government of India that can be presented as proof of identity which are:

• PAN Card,
• Passport,
• Driving License,
• Voters’ Identity Card,
• Aadhaar Card issued by UIDAI,
• MGNREGA Job Card.

A customer needs to submit only one of these documents as proof of identity. If the document also has the address on it, then it would also be considered as proof of address.

Accounts for Companies

In the case of companies, they open Current accounts and the required documents are:

• Certificate of Incorporation
• Memorandum of Association
• Any resolution made by the Board of Directors or any official valid document with respect to the managers, officers,employees etc.

Accounts for Partnership Firms

Partnership deed, registration certificate.

Trust Accounts

Trust Deed and a registration certificate.

Accounts of Unincorporated Associations:

Any official document made with respect to the company or any document which in turn dictates the companies legal existence can be considered as sufficient because in case of unincorporated associations a registration certificate cannot be obtained.

Proprietors Accounts:

In case of proprietorship account all certificates relating to tax liability, VAT, registration, license certificates, Sales or Income Tax returns are needed to be submitted. Extra care is involved in it as proprietorship hold huge amounts and operate huge sum transactions which has to be looked upon.

Rulings of RBI

Earlier AXIS Bank, ICICI Bank and HDFC Bank all three of them were fined with Rs. 5 crores, 1 crore and 4.5 crores respectively by the Reserve Bank of India for violating norms of KYC. After investigation RBI found that these banks did not stick to some of KYC norms and also Anti Money Laundering (AML) guidelines like risk categorisation of account holders and periodical review of the risk profiling. In the investigation it also came under notice of RBI that these banks were not filing Cash Transaction Reports (CTRs) with respect to some cash transactions and these banks were also found responsible for selling of gold coins beyond 50,000 rupees for cash.

RBI noticed that in all the three banks internal operations were not up to the mark. These banks were found guilty of not keeping proper record of PAN numbers and from where the funds were deposited in the accounts of account holders. No evidence regarding committing any money laundering was found.

Conclusion

Those banks who are complying with KYC norms are benefiting the customers who are coming from a rural background.

In the beginning when guidelines regarding KYC were issued there was not any awareness about it among the employees or customers, mainly the weaker sections of the society lacked awareness. After this, flexibility was given to submit the compulsory documents slowly aiming the news to reach the larger group.

“KYC norms are customer-friendly and the opinion that in availing banking facilities the norms are an obstruction for people from a rural background is not true”. KYC has ended the lengthy procedures, insisted by the banks. Now, only one identity proof is sufficient for opening a bank account. This initiative by the government helps and benefits the workers and daily workers as it is very difficult for these groups to obtain two different proofs for address and identity because most of these people migrates from one place to another so this step will act as a relief for them.

REFERENCE

1. http://www.legalindia.com/
2. https://rbi.org.in/
3. http://www.dnaindia.com/
4. http://www.airtel.in/
5. http://economictimes.indiatimes.com/