The Shah Bano Case
Shah Bano, a 62-year-old Muslim woman from Indore, Madhya Pradesh, filed a petition in court in April 1978, demanding maintenance from her divorced husband Mohammed Ahmad Khan, a well-known lawyer. Later in November, Khan granted her an irreversible talaq.
• In 1932, the couple married and had five children: three sons and two daughters. After a long period of living with Khan and his second wife, Shah Bano's husband had asked her to move to a separate residence three years before.
• Shah Bano went to court and requested maintenance for herself and her five children under Section 123 of the 1973 Code of Criminal Procedure. The section makes it legal for a man to support his wife both during the marriage and after divorce if she is unable to care for herself. Khan, on the other hand, disputed the claim, claiming that Muslim Personal Law in India only required the husband to provide maintenance for the iddat period following divorce.
• Iddat is the period of time a woman must wait after her husband's death or divorce before marrying another man. The duration of the iddat period is unknown. After either of the two events, the period is usually three months. If the woman is pregnant, the period will last until the child is born.
• Khan's argument was backed up by the All India Muslim Personal Law Board, which argued that courts cannot interfere in matters covered by Muslim Personal Law because it would be a violation of the Muslim Personal Law (Shariat) Application Act, 1937. The board stated that the Act required courts to make decisions based on Shariat in matters of divorce, maintenance, and other family matters.
• The Supreme Court of India issued its decision in 1985 after extensive deliberation. On the question of whether the CrPC, 1973, which governs all Indian citizens regardless of religion, could be applied in this case. Then-Chairman of the Supreme Court of India, Y.V. Chandrachud, upheld the High Court's decision to order Shah Bano's maintenance under the CrPC. The Supreme Court, for its part, increased the amount of maintenance.
• The case was regarded as a watershed moment because it went beyond the standard practice of deciding cases on the basis of personal law interpretation and emphasized the importance of implementing the Uniform Civil Code. It also took note of various personal laws, as well as the need to recognize and address the issues of gender equality and religious principles perseverance.
• “Section 125 was enacted to provide a quick and summary remedy to a class of persons who are unable to maintain themselves,” Justice Y.V. Chandrachud wrote in his decision. What difference does it make then what religion the neglected wife, child, or parent practises? The objective criteria that determine the applicability of section 125 are a person's lack of sufficient means to maintain them and their inability to maintain themselves. Such provisions, which are essentially preventative in nature, cut across religious barriers. The individual's obligation to society to prevent vagrancy and destitution is based on section 125's liability to maintain close relatives who are indigent. That is the law's moral edict, and morality and religion are incompatible.”
• Following that, the then-Rajiv Gandhi Congress government, which was elected in 1984, passed the Muslim Women (Protection on Divorce Act) of 1986, which was largely unfavorable. This law overturned the Shah Bano decision, stating that the maintenance period can only be held responsible for the iddat period.
• The new law stated that if a woman was unable to provide for herself, the magistrate had the authority to order the Wakf Board to provide sustenance to the aggrieved woman and her dependent children.
• Danial Latifi, Shah Bano's lawyer, had challenged the Act's constitutionality. Despite upholding the new law's validity, the apex court stated that liability cannot be limited to the period of iddat. The recognition of women's claim to equality and dignity, particularly in cases of marriage, was one of the key points of relevance in the verdict that set it apart from previous cases. Shah Bano subsequently withdrew the maintenance claim she had filed.
THE ELAM TIGERS AND ASSASINATION OF RAJIV GANDHI
• The Liberation Tigers of Tamil Eelam (LTTE), also known as the Tamil Tigers, was a separatist militant organisation in northern Sri Lanka fighting for an independent homeland for the Tamil minority. Velupillai Prabhakaran founded the group in 1972, and by the late 1980s, it had become Sri Lanka's most powerful Tamil militant group. In 2006, the Sri Lankan government declared an all-out offensive against the LTTE after a series of failed negotiations.
• Government forces had defeated the LTTE and killed Prabhakaran by May 2009. During the conflict between the LTTE and the Sri Lankan government, an estimated 70,000 people were killed.
• The LTTE is known for a number of high-profile assassinations, including those of Sri Lankan President Ranasinghe Premadasa in 1993 and former Indian Prime Minister Rajiv Gandhi in 1991. The LTTE had a well-developed military wing as well as a secondary political wing. A naval group, an airborne unit, an intelligence wing, and even a specialized suicide terrorist unit were all part of the military wing. The group was also known for using women and children as combatants.
• The LTTE's main goal was to establish a separate state for Sri Lankan Tamils in Northern and Eastern Sri Lanka, known as "Tamil Eelam," where the majority of Sri Lankan Tamils live. The majority of Sri Lankans are Buddhist Sinhalese; according to a 2001 census, 82 percent of the population is Sinhalese, 9.4 percent is Tamil, and 7.9 percent is Sri Lankan Moor. After the British left Sri Lanka in 1948, the majority Sinhalese discriminated against the Tamils, who had been favoured by the British during colonial rule.
• The Sinhalese declared Buddhism to be Sri Lanka's national religion in 1972. The LTTE's leader, Prabhakaran, emphasised that "a struggle for Eelam is a demand of the Tamil people, not just of the LTTE." Despite the fact that separatist ideology has dominated the LTTE's portrayal, Prabhakaran stated in a 2002 press conference that the LTTE's desired self-determination entailed autonomy and self-rule rather than statehood and separation from the rest of Sri Lanka.
Assassination of Rajiv Gandhi:
• Rajiv Gandhi, the former Prime Minister of India, was assassinated on May 21, 1991, in Sriperumbudur, Chennai, Tamil Nadu, India, by a suicide bomber. At least 14 more people were killed. It was carried out by Thenmozhi Rajaratnam, also known as Dhanu, a member of the Liberation Tigers of Tamil Eelam (LTTE), a Sri Lankan militant group; at the time, India had just ended its involvement in the Sri Lankan Civil War through the Indian Peace Keeping Force.
• Rajiv Gandhi was campaigning in southern India for the upcoming elections. After successfully campaigning in Visakhapatnam on May 21, he travelled to Sriperumbudur, Tamil Nadu. Rajiv Gandhi was driven by motorcade in a white Ambassador car to Sriperumbudur about two hours after arriving in Madras (now Chennai), stopping at a few other election campaigning venues along the way. He got out of his car and began walking towards the dais where he would deliver a speech when he arrived at a campaign rally in Sriperumbudur.
• Many well-wishers, Congress party workers, and schoolchildren greeted him along the way. Dhanu, the assassin, approached him and greeted him. At exactly 10:10 p.m., she bent down to touch his feet and detonated an RDX explosive-laden belt tucked beneath her dress.
• In the explosion that followed, Rajiv, his assassin, and 14 others were killed, along with 43 others who were severely injured. Haribabu, a local photographer, caught the assassination on film, and his camera and film were found at the crime scene, though the photographer died in the blast.
• The Supreme Court determined that Rajiv's removal was motivated by his interview with Sunday magazine (21–28 August 1990), in which he stated that if he returned to power, he would send the IPKF to disarm the LTTE. In the same interview, Rajiv defended the signing of the Indo-Sri Lanka agreement.
• The LTTE's decision to assassinate him may have been motivated by a desire to prevent him from regaining power. Following that, the Justice J S Verma Commission was established to investigate the security lapses that led to the murder.
• The final report, which was submitted in June 1992, concluded that the former PM's security arrangements were adequate, but that local Congress party leaders disrupted and broke them.
• The government of Narasimha Rao initially rejected Verma's findings, but eventually accepted them under duress. However, the Commission's recommendations were not implemented. Despite the lack of action, the findings raise important questions that political analysts have repeatedly raised.
• According to sources, Rajiv was repeatedly warned that his life was in danger and that he should avoid travelling to Tamil Nadu.
• In fact, the then-governor of Tamil Nadu, Bhism Narayan Singh, broke protocol by warning Rajiv twice that he would face death if he visited the state. An LTTE delegation met Rajiv Gandhi on March 5, 1991, according to Dr. Subramanian Swamy's book, Sri Lanka in Crisis: India's Options (2007). Another delegation met him in New Delhi on March 14, 1991.
• Rajiv Gandhi's mutilated body was airlifted to New Delhi after his assassination. His body was transported from the Palam airport to New Delhi's All India Institute of Medical Sciences for post-mortem, reconstruction, and embalming.
• On May 24, 1991, Rajiv Gandhi was given a state funeral. His funeral was broadcast live on national and international television, and dignitaries from more than 60 countries were in attendance. He was cremated near the cremation sites of his mother, brother, and grandfather on the banks of the Yamuna River. Veerbhumi is the name of the cremation site where he was laid to rest.
• On May 22, 1991, the Chandrasekhar government handed over the investigation to the CBI, which began immediately after the assassination. To figure out who was behind the assassination, the agency formed a Special Investigation Team (SIT) led by D. R. Karthikeyan. The role of the LTTE in the assassination was confirmed by the SIT investigation, which was upheld by the Supreme Court of India.
• The DMK was charged with colluding with the LTTE in Justice Milap Chand Jain's interim report, which looked into the conspiracy angle to the assassination. The report concluded that the DMK gave the LTTE safe haven, making it easier for the rebels to assassinate Rajiv Gandhi.
• The year 1989, according to the Commission report, represented "the continuation of the general political trend of indulging Tamil militants on Indian soil and tolerance of their wide-ranging criminal and anti-national activities." According to the report, LTTE leaders in Jaffna had access to sensitive coded messages exchanged between the Union government and the DMK's state government.
• “There is evidence that some of the most vital wireless messages were passed between the LTTE operatives in Tamil Nadu and Jaffna during this period. These messages, which were later decoded, are directly related to Rajiv Gandhi's assassination, according to the report.
• After the report was leaked in November 1998, the Congress brought down I K Gujral's United Front (UF) government. The party also demanded that the DMK be removed from the UF government, claiming that it was responsible for Rajiv Gandhi's death.
RISE OF TERRORISM IN KASHMIR AND EXODUS OF KASHMIRI PANDITS
• Kashmir is said to have been founded by a legendary rishi (ascetic-scholar) Kashyap, who is said to have reclaimed it from a massive lake that once existed where the Kashmir Valley now stands. In ancient literature, the land was known as Kashyapmar, which was later corrupted to Kashmir.
• The Jammu Kashmir Liberation Front (JKLF) launched a separatist insurgency for Kashmir's independence from India in July 1988. The group first targeted a Kashmiri Pandit on September 14, 1989, when they assassinated Pandit Tika Lal Taploo, an advocate and prominent leader in Jammu & Kashmir, in front of multiple eyewitnesses.
• The Kashmiri Pandit community was terrified, especially because Taploo's killers were never apprehended, emboldening the terrorists. The Pandits felt unsafe in the valley and that they could be attacked at any time. The killings of Kashmiri Pandits continued, with many prominent figures among them. This must be viewed in the context of Pakistan's proxy war policy.
• Aftab, a local Urdu newspaper, published a press release issued by Hizb-ul-Mujahideen on January 4, 1990, requesting that all Pandits leave the Valley immediately. This expulsion order was repeated by another local newspaper, Al Safa. The public address systems were frequently used to broadcast explosive and inflammatory speeches.
• Attacks on prominent Hindu politicians, the posting of hit lists with the names of specific Pandit individuals, and various violent episodes in Srinagar and elsewhere heightened the sense of vulnerability and insecurity.
• Minister of Home Affairs Mufti Mohammad Sayeed persuaded Prime Minister V.P. Singh to appoint Jagmohan as the state's governor in order to undermine his political rival Farooq Abdullah, who was then the Chief Minister of Jammu and Kashmir. Abdullah was enraged by Jagmohan, who had also been appointed governor in April 1984 and had recommended Abdullah's dismissal to Rajiv Gandhi in July 1984.
• Mufti was convinced that such an action would enrage Abdullah and force him to resign. Abdullah had previously stated that if Jagmohan was appointed Governor, he would resign. The central government, on the other hand, went ahead and appointed him Governor on January 19, 1990. As a result, Abdullah resigned on the same day, and Jagmohan suggested that the State Assembly be dissolved.
• The Gawkadal massacre in Srinagar occurred on January 21, 1990, two days after Jagmohan took over as governor. Indian security forces opened fire on protesters. Chaos ensued as a result of these events. Lawlessness swept the valley, and a crowd armed with slogans and guns began roaming the streets. News of violent incidents continued to arrive, and those Pandits who made it through the night saved their lives by fleeing the valley. They are still mostly housed in refugee camps in Jammu.
• People were forced to reset their clocks to Pakistan Standard Time by masked men armed with Kalashnikovs. As a symbol of Pakistani rule, all office buildings, shops, and establishments were painted green.
• Kashmiri Pandit shops, factories, temples, and homes were burned or destroyed. During the exodus, many Kashmiri Hindu women were kidnapped, raped, and murdered. After the exodus, militancy in Kashmir increased.
THE BOP CRISIS AND THE ECONOMIC REFORMS OF 1991
• India's global transition began with the 1991 economic reform. The transition to a new India, as well as a shift in the government's perspective on the role of private players and markets in the economy.
• The initial steps towards economic reforms were the Balance of Payments crisis, followed by the pledge of gold reserves, IMF loans, and other structural adjustment programs (sponsored by the IMF and the World Bank). The BOP crisis was the result of India's decades of reckless economic policies.
• The economy's institutional arrangements were adequate prior to 1991, but they eventually deteriorated the country's fiscal situation. Fiscal policy has played a significant role in India's history.
• In 1991, India's balance of payments deficit became unsustainable. For a long time, the country was mired in large deficits, and as a result, it faced a balance-of-payments crisis.
• Though the crisis was a watershed moment, it also provided an opportunity to make some fundamental changes in the country's economic policies.
• The government used a variety of fiscal, monetary, trade, finance, and industrial policies to combat the crisis. Since mid-1991, the Indian economy has deviated from previous post-independence policies. Listening to the post-crisis reforms, the words "liberalizations," "privatizations," and "globalizations" come to mind. Through new economic policy, India's economy has paved the way for a new era (NEP).
What is BOP and how does it lead to crisis?
• When the government spends more than it receives, it creates a deficit. When it receives more money than it spends, it is said to be in surplus. When in a deficit, it has three options for covering the additional expenditure.
• Printing money, withdrawing funds from foreign exchange reserves, or borrowing funds from domestic or international sources are all options. However, it is not as simple as it appears. While using these measures, it has an impact on other economic variables. Inflation can be caused by excessive money printing. If the government borrows heavily from foreign sources, it may face a debt crisis. Excessive borrowing from domestic sources can lead to higher interest rates and exacerbate the "crowding out" situation.
• A balance of payments crisis could occur if the government depletes its foreign exchange reserves. In all cases, a government that runs a large deficit over a long period of time (which is not prudent for a government) will face a crisis. In 1991, India experienced the worst BOP crisis since 1947.
Fiscal Situation before Crisis:
• The Planning Commission was established in 1950, and India has been on a path of planned development since then. The public sector was emphasised heavily during the planning process as a means of achieving economic growth and development. The introduction of the quota-license-inspector raj established administrative controls over industries.
• Because of the licence raj system, India has had a continuous trade deficit since 1950. Private savings were a way for the public sector to fund its investment and consumption.
• Another goal at the time was to reduce inequalities and poverty by redistributing income and wealth through taxes and transfers. There were 11 different income tax brackets to choose from. During the 1970s, the government increased income tax rates to high levels.
• During the 1970s, the marginal rate of taxation, combined with the wealth tax, reached 100%. The personal income tax rate was reduced to 77 percent in 1974–75, but the wealth tax rate was raised. By 1989–90, the central revenue deficit had risen to 2.44 percent of GDP, up from 1.4 percent in 1980–81. The gross fiscal deficit of the central government increased from 5.71 percent to 7.31 percent of GDP. Even after the reduction in external liabilities, the total liabilities remained enormous.
• During 1970–71, defence accounted for around 34% of total spending, interest payments accounted for 19%, and subsidies accounted for 3%. Furthermore, by 1990–91, interest payments accounted for 29% of total expenditures, with subsidies accounting for 17% and defence accounting for 15%. At the time, the public debt and subsidy burdens were both quite heavy.
• Between 1980 and 1990, there was a self-perpetuating cycle of deficit-induced inflation and deficit-induced deficit. The deficit causes an increase in the money supply, which in turn raises prices. The increase in price causes the government's expenditure to outpace its receipts, resulting in an increase in the deficit. Because of the quota licence inspector raj, India has had a continuous trade deficit since 1950. The BOP crisis of 1991 resulted from fiscal imbalances affecting the foreign sector.
• This was India's worst BOP crisis since independence. During the 1980s, the inflow of foreign borrowings grew at a rapid pace. The fiscal deficit of the federal and state governments reached 11% in 1991 as a result of excessive domestic spending on incomes. The total public debt as a percentage of GDP more than doubled, and foreign currency reserves rapidly depleted. India experienced double-digit inflation in 1990–91.
• The situation has been made worse by the rise in oil prices as a result of Iraq's invasion of Kuwait (First Gulf war). India's credit ratings were downgraded for the first time in its history. As a result, access to external commercial credit markets was denied.
Immediate and Subsequent steps taken by Government:
• Taking immediate action against the crisis included borrowing money from US and Swiss banks against gold reserves and receiving a condition-free loan from the IMF. The long-overdue economic reforms are one positive outcome of this crisis.
• To address the balance of payment problem, the government implemented a number of major policy initiatives. During 1990–91, the fiscal deficit was around 8.4% of GDP. The budget for 1991–92, which called for a 2% reduction in the fiscal deficit, only slightly corrected the fiscal imbalances.
• Fertilizer subsidies were reduced in tandem with the elimination of the sugar subsidy. Excessive subsidy provision exacerbates the fiscal deficit, which was brought under control by reducing these subsidies.
• The quota and licensing system was abolished. Private markets, foreign investment, and trade were all made possible. To balance the budget, the government paved the way for economic liberalization. Various tax reforms have been implemented in order to make the tax system more stable and transparent.
• The reduction of tax brackets to three, with rates of 20%, 30%, and 40%, is one of them. Monetary reform played a significant role in balancing the budget deficit. Some monetary policies included lowering the statutory liquidity ratio (SLR) and the cash reserve ratio (CRR), as well as establishing guidelines for the establishment of new private sector banks. These reforms were implemented with the goal of increasing competition among public, private, and foreign banks.
• The government decided to remove direct government control over capital markets and replace it with a transparent regulatory framework. Significant changes were made to industrial and trade policies. By narrowing the areas reserved for public sectors, the MRTP was repealed and private sector participation in the industrial sector was allowed.
• The devaluation of the rupee was one of the government's measures to improve the balance of payments situation. Depreciation of a currency causes an increase in export and, as a result, an increase in foreign currency inflow. The rupee was initially devalued by around 20%. Because of high inflation, there was a need to close the gap between the real and nominal exchange rates. This devaluation corrected the overhauled exchange rate.
• The year 1991 is remembered as a watershed moment in Indian history. The country was in the midst of its worst economic crisis in decades, and it took advantage of the situation to make significant changes to its economic policies. India's economy underwent rapid transformation, and a new perspective of India known as New India emerged as a result. The three ideals of liberalizations, privatization, and globalization guided the development of this new India (LPG reforms).