HomeCoursesExamsAdmissionMore
← All Blogs
Current Affairs38 min read

CLAT Current Affairs Notes: July 7, 2026 | 12 Key Topics for CLAT 2027 Preparation

Daily CLAT Current Affairs for 7 July 2026 — covers 12 CLAT-relevant topics including PM Modi's Indonesia visit (BrahMos deal), 130th Constitution Amendment Bill (30-day custody clause for PM/CMs), Supreme Court zero-tolerance for AI-generated fake judgments, RBI vs cryptocurrency, Parliament Monsoon Session 2026, One Nation One Election update, India's BRICS Chairmanship 2026, Carbon Credit Trading Scheme, Delhi 7-Million Tree Drive, EPF Scheme 2026, RBI AI Model Risk Guidelines, and Operation Sindoor privilege motion.

CLATians
CLATians Editorial Desk
07 Jul 2026

1. PM Modi's Indonesia Visit: BrahMos Deal, Astra Missiles & Highest Civilian Honour

Source: India TV News, Naval News, The Week | Category: International Relations / Defence

What Happened?

Prime Minister Narendra Modi arrived in Jakarta on a two-day bilateral visit to Indonesia on July 7, 2026 — his fourth visit to the country and first since the bilateral relationship was elevated to a Comprehensive Strategic Partnership. Indonesian President Prabowo Subianto conferred upon PM Modi the nation's highest civilian honour, the Bintang Adipurna (Star of Adipurna). India and Indonesia signed landmark defence agreements for the supply of BrahMos supersonic cruise missiles and indigenously developed Astra Beyond-Visual-Range Air-to-Air Missiles (BVRAAM) to the Indonesian military in a deal valued at approximately $630 million. The two nations also finalised a framework for maritime safety and security cooperation, including joint development of the strategically vital Sabang Port overlooking the Strait of Malacca.

Why is this IMPORTANT for CLAT?

  • The BrahMos deal exemplifies India's Atmanirbhar Bharat (self-reliance) doctrine in defence exports — a recurring theme in CLAT comprehension passages on India's foreign policy and defence industrialisation.
  • Indonesia's significance as a member of BRICS (since 2023) and ASEAN's largest economy makes India-Indonesia ties a potential reading comprehension theme on multilateral diplomacy and strategic partnerships.
  • The Strait of Malacca passage theme connects to maritime law, the UNCLOS framework, and India's Indo-Pacific strategy — all CLAT-relevant topics.
  • The concept of bilateral civilian honours (such as Bintang Adipurna) tests awareness of international protocol and diplomatic nomenclature frequently tested in General Knowledge.

Key Static Concepts to Link

  • Comprehensive Strategic Partnership (CSP): The highest level of bilateral engagement; India has CSPs with the US, France, UAE, Indonesia, and others.
  • BrahMos Missile: A joint venture between India's DRDO and Russia's NPO Mashinostroyeniya; a supersonic cruise missile named after rivers Brahmaputra (India) and Moskva (Russia). Philippines was the first export customer (2022); Vietnam second; Indonesia now third.
  • UNCLOS (United Nations Convention on the Law of the Sea, 1982): Governs maritime rights including Exclusive Economic Zones (EEZ) and freedom of navigation.
  • ASEAN: Association of Southeast Asian Nations; India is a dialogue partner and follows an Act East Policy.
  • Sabang Port: Located in Aceh province, Indonesia; strategic because it overlooks the Strait of Malacca — one of the world's busiest sea lanes.
  • Article 51 of the Indian Constitution: Directs the State to promote international peace and security, and foster respect for international law.

Possible CLAT Questions

Q1. The 'Bintang Adipurna' conferred on PM Modi during his July 2026 Indonesia visit is: A. Indonesia's highest military honour B. Indonesia's highest civilian honour C. A joint ASEAN diplomatic recognition D. A cultural award given by ASEAN members to world leaders

Q2. The BrahMos missile is a product of joint development between India and: A. France B. Israel C. Russia D. United States

Q3. The Sabang Port, a key focus of the India-Indonesia maritime cooperation deal, overlooks which strategically vital sea lane? A. Strait of Hormuz B. Strait of Malacca C. Strait of Gibraltar D. Lombok Strait

Q4. India's defence export policy is guided primarily by which initiative? A. Make in India B. Atmanirbhar Bharat C. Digital India D. Startup India

Q5. Indonesia became which numbered export customer for the BrahMos missile system? A. First B. Second C. Third D. Fourth

Answers: Q1-B, Q2-C, Q3-B, Q4-B, Q5-C

2. 130th Constitution Amendment Bill: JPC to Retain 30-Day Custody Clause for PM and CMs

Source: ANI, The Tribune, NextIAS | Category: Indian Polity & Constitutional Law

What Happened?

The Joint Parliamentary Committee (JPC) examining the 130th Constitution Amendment Bill is set to adopt its final report on July 17, 2026. According to reports, the committee has decided to retain the Bill's most controversial provision: the automatic removal of the Prime Minister, Chief Ministers, and Union/State ministers from office if they are arrested and remain in judicial custody for 30 consecutive days in cases involving offences punishable with five or more years of imprisonment. If the PM or CM remains in custody for 30 consecutive days, they must resign; otherwise they automatically cease to hold office on the 31st day. The committee is expected to include safeguards in the report to prevent misuse of this provision for political vendetta.

Why is this IMPORTANT for CLAT?

  • This Bill directly amends the constitutional provisions governing the tenure of the Council of Ministers (Articles 74, 75 for the Union; Articles 163, 164 for States) — a core CLAT polity topic.
  • The tension between legislative accountability and constitutional separation of powers is a fertile CLAT comprehension theme — passages may juxtapose this Bill with the Representation of the People Act, the Anti-Defection Law (10th Schedule), and constitutional morality.
  • CLAT frequently tests knowledge of disqualification criteria for legislators and executives, making this Bill highly testable.
  • The political debate around misuse (motivated prosecutions to destabilise governments) connects to constitutional safeguards and rule of law.

Key Static Concepts to Link

  • Article 75(3): The Council of Ministers is collectively responsible to the House of the People (Lok Sabha).
  • Article 164: Deals with appointment, tenure, and responsibility of State Council of Ministers.
  • Anti-Defection Law (10th Schedule, 1985): Disqualifies members who switch parties — another accountability mechanism.
  • Representation of People Act, 1951, Section 8: Bars persons convicted of certain offences from contesting elections.
  • Presumption of Innocence: Fundamental principle — a person is innocent until proven guilty; the Bill arguably creates tension with this principle since it acts upon arrest (not conviction).
  • 130th vs 129th Constitution Amendment Bills: 129th = One Nation One Election; 130th = Minister disqualification upon arrest.
  • JPC (Joint Parliamentary Committee): A committee of both Houses of Parliament set up to examine a specific bill.

Possible CLAT Questions

Q1. The 130th Constitution Amendment Bill primarily deals with: A. Simultaneous elections to Lok Sabha and State Assemblies B. Automatic removal of ministers upon 30 days of judicial custody C. Reservation for women in Parliament and State legislatures D. Increase in the number of Supreme Court judges

Q2. Under Article 75(3) of the Indian Constitution, the Council of Ministers is collectively responsible to: A. The President of India B. The Rajya Sabha C. The Lok Sabha D. The Prime Minister

Q3. Which provision of the Representation of the People Act, 1951 bars persons convicted of certain offences from contesting elections? A. Section 3 B. Section 8 C. Section 12 D. Section 33A

Q4. A JPC (Joint Parliamentary Committee) is a committee comprising members from: A. Only the Lok Sabha B. Only the Rajya Sabha C. Both Houses of Parliament D. Parliament and Supreme Court judges

Q5. The 130th Constitution Amendment Bill's custody clause is seen as being in tension with which legal principle? A. Double Jeopardy B. Presumption of Innocence C. Right to Speedy Trial D. Right Against Self-Incrimination

Answers: Q1-B, Q2-C, Q3-B, Q4-C, Q5-B

3. Supreme Court Declares Zero-Tolerance for AI-Generated Fake Judgments

Source: Republic World, LiveLaw, Verdictum | Category: Indian Polity & Constitutional Law / Judiciary

What Happened?

In a landmark ruling on July 2, 2026, a bench of Justices P.S. Narasimha and Alok Aradhe set aside orders of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) after finding that these tribunals had decided a bankruptcy case — involving Jammu & Kashmir Bank and Essel Infraprojects Ltd. — relying on judgments that simply did not exist. Some were entirely fabricated by AI, while others were real cases with extra lines added by AI. The Supreme Court declared: "It is necessary for Courts to adopt a zero-tolerance mode for producing, citing or using AI-generated precedents without verification. It is misconduct on the part of an advocate to cite such judgments without verification." The Court directed the Bar Council of India (BCI) to constitute a dedicated committee to address advocates placing fake material before courts. It also held that a decision resting on hallucinated material is no decision in the eyes of the law.

Why is this IMPORTANT for CLAT?

  • This ruling directly tests knowledge of judicial ethics, the role of the Bar Council of India, and the accountability of advocates — all key CLAT Legal Aptitude themes.
  • CLAT passages frequently feature AI and law intersections — the hallucination problem in legal AI, ethical concerns in legal practice, and court technology.
  • The NCLT and NCLAT (set up under the Companies Act 2013 and the Insolvency and Bankruptcy Code 2016) are frequently tested institutions in CLAT GK and Legal Reasoning.
  • The ruling on what constitutes a valid "decision" invokes rule of law and natural justice principles — very CLAT-relevant.

Key Static Concepts to Link

  • Bar Council of India (BCI): Statutory body constituted under the Advocates Act, 1961; regulates legal education and professional conduct of advocates.
  • NCLT (National Company Law Tribunal): Quasi-judicial body under the Companies Act, 2013 that handles corporate disputes, insolvency proceedings.
  • NCLAT (National Company Law Appellate Tribunal): Appellate body that hears appeals from NCLT orders.
  • Insolvency and Bankruptcy Code (IBC), 2016: Governs insolvency resolution processes for corporates, individuals, and partnerships.
  • Precedent / Stare Decisis: The doctrine that courts must follow earlier decisions (precedents) — AI hallucinated citations undermine this.
  • AI Regulations for Courts Draft, 2026: The Supreme Court had invited comments on draft regulations governing AI use in courts (deadline extended to July 2026).
  • Article 141: Law declared by the Supreme Court is binding on all courts within India.

Possible CLAT Questions

Q1. The Supreme Court's zero-tolerance ruling on AI-generated fake judgments arose from a case involving which institution? A. Central Bureau of Investigation B. National Company Law Tribunal C. Competition Commission of India D. Securities and Exchange Board of India

Q2. The Bar Council of India was constituted under which Act? A. Legal Services Authorities Act, 1987 B. Bar Council of India Act, 1954 C. Advocates Act, 1961 D. Legal Practitioners Act, 1879

Q3. The NCLT and NCLAT were established under which law? A. SEBI Act, 1992 and Securities Appellate Tribunal Act B. Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016 C. Competition Act, 2002 D. Industrial Disputes Act, 1947

Q4. Article 141 of the Indian Constitution states that: A. Supreme Court judges shall be appointed by the President B. Law declared by the Supreme Court shall be binding on all courts in India C. Every person shall have the right to legal representation D. High Courts shall have the power of superintendence over subordinate courts

Q5. The term "AI hallucination" in the legal context refers to: A. An AI system that uses real judgments but misquotes them intentionally B. An AI system that invents non-existent cases, citations, or adds fictional content to real judgments C. A software error that causes courts' IT systems to crash D. An AI that provides emotionally manipulative legal arguments

Answers: Q1-B, Q2-C, Q3-B, Q4-B, Q5-B

4. RBI Tells Parliament: Cryptocurrency/VDAs Should Not Be Legalised in India

Source: BusinessToday, Medianama, Business Standard | Category: Economy: Regulation & New Financial Instruments

What Happened?

The Reserve Bank of India (RBI) has reiterated its strong opposition to legalising Virtual Digital Assets (VDAs), including cryptocurrencies, before the Parliamentary Standing Committee on Finance (July 2026). The RBI told the committee that VDAs pose a macro-financial stability risk to emerging economies like India and pitched a "containment strategy" — keeping banks and regulated financial institutions fully insulated from crypto. The RBI argued that prohibition remains a legitimate policy option under international frameworks and cited risks including use of crypto in terror financing and narcotics trafficking. Notably, the RBI also acknowledged that its own e-Rupee (Central Bank Digital Currency/CBDC) has seen limited uptake. The Standing Committee Chairman noted the contradiction: India taxes crypto at 30% under Section 115BBH of the Income Tax Act but refuses to legalise it.

Why is this IMPORTANT for CLAT?

  • Cryptocurrency regulation is a high-priority CLAT topic — passages regularly feature arguments for/against crypto, the nature of money, and regulatory frameworks.
  • The RBI's mandate, powers, and its relationship with Parliament are fundamental CLAT Constitutional Law topics (Article 246, Seventh Schedule; RBI Act 1934).
  • The taxation vs legalisation paradox with VDAs offers rich analytical and legal reasoning content about regulatory consistency and rule of law.
  • The CBDC/e-Rupee and its contrast with decentralised crypto tests conceptual clarity frequently tested in CLAT.

Key Static Concepts to Link

  • Reserve Bank of India Act, 1934: Governs the establishment, powers, and functions of the RBI.
  • Virtual Digital Assets (VDAs): Defined under Section 2(47A) of the Income Tax Act, 1961 (inserted by Finance Act 2022) — includes crypto and NFTs.
  • Section 115BBH, IT Act: Taxes income from VDA transfers at a flat 30% with no set-off of losses.
  • Central Bank Digital Currency (CBDC) / e-Rupee: A digital form of legal tender issued by the RBI — distinct from crypto in that it is centralised and backed by the sovereign.
  • PMLA (Prevention of Money Laundering Act, 2002): VDA service providers were brought under PMLA obligations in 2023 — required to follow KYC/AML norms.
  • Parliamentary Standing Committee on Finance: A departmentally related standing committee of Parliament; scrutinises financial legislation and RBI policies.
  • Financial Action Task Force (FATF): International body setting global standards on anti-money laundering; India is a member.

Possible CLAT Questions

Q1. Under which provision of the Income Tax Act, 1961 is income from Virtual Digital Assets (VDAs) taxed at a flat rate of 30%? A. Section 115BAC B. Section 115BBH C. Section 115JB D. Section 139AA

Q2. The e-Rupee (CBDC) issued by the RBI is different from cryptocurrency primarily because it is: A. Completely anonymous and decentralised B. Based on blockchain technology with no regulation C. A centralised digital currency backed by the sovereign government D. Only used for international transactions

Q3. Which Act governs the establishment and functioning of the Reserve Bank of India? A. Banking Regulation Act, 1949 B. State Bank of India Act, 1955 C. Reserve Bank of India Act, 1934 D. Foreign Exchange Management Act, 1999

Q4. Which international body sets global standards for anti-money laundering and counter-terrorism financing? A. IMF B. World Bank C. FATF D. BIS (Bank for International Settlements)

Q5. VDA service providers in India were brought under the Prevention of Money Laundering Act (PMLA) obligations in which year? A. 2020 B. 2021 C. 2022 D. 2023

Answers: Q1-B, Q2-C, Q3-C, Q4-C, Q5-D

5. Parliament Monsoon Session 2026: July 20 to August 13 — Key Bills & Opposition Agenda

Source: BusinessToday, The Week, WION, Open Magazine | Category: Indian Polity & Constitutional Law / Parliamentary Proceedings

What Happened?

The Monsoon Session of Parliament 2026 will commence on July 20 and run through August 13, comprising 19 sittings, as announced by Parliamentary Affairs Minister Kiren Rijiju on July 4. The legislative calendar is packed: the government will prioritise the 130th Constitution Amendment Bill (PM/CM removal on arrest), the 131st Constitution Amendment Bill (Women's Reservation + Delimitation linkage), and the One Nation One Election (ONOE) framework. Other bills include the Foreign Contribution Regulation Amendment Bill, the Viksit Bharat Shiksha Adhishthan Bill, Anti-Doping reforms, the Securities Market Code, and a bill to increase the number of Supreme Court judges. The Opposition, led by Congress, plans to press privilege proceedings against Defence Minister Rajnath Singh over alleged misrepresentation about Operation Sindoor casualty figures.

Why is this IMPORTANT for CLAT?

  • Parliamentary sessions and legislative procedures are direct CLAT syllabus topics — questions on when sessions are called, prorogation, adjournment, and types of bills are common.
  • The Bills listed (130th and 131st Constitution Amendment Bills, ONOE) are high-frequency CLAT topics for both static GK and comprehension passages.
  • Privilege proceedings (a House punishing its members or outsiders for breach of parliamentary privilege) is a key constitutional concept under Articles 105 and 194.
  • The simultaneous coverage of legislative agenda and executive accountability in one session mirrors the kind of dense factual comprehension passages CLAT uses.

Key Static Concepts to Link

  • Article 85: Power of the President to summon, prorogue, and dissolve Parliament; sessions are not mentioned in the Constitution explicitly but are called conventionally (Budget, Monsoon, Winter).
  • Article 105: Privileges of members of Parliament — freedom of speech in Parliament, immunity from proceedings in court.
  • Privilege Motion: A notice given by a member of Parliament when they believe a fellow member or minister has misled the House.
  • Constitutional Amendment Procedure (Article 368): Bills amending the Constitution require a special majority (2/3 of members present and voting + majority of total membership); some also require ratification by half the States.
  • Delimitation: The process of redrawing electoral constituency boundaries; the 131st CA Bill links Women's Reservation to post-delimitation implementation.
  • Joint Session (Article 108): Can be called in case of disagreement between two Houses on a bill (not applicable to Constitution Amendment Bills or Money Bills).
  • Kiren Rijiju: Union Minister of Parliamentary Affairs; responsible for government's legislative business coordination.

Possible CLAT Questions

Q1. Which Article of the Indian Constitution empowers the President to summon and prorogue Parliament? A. Article 83 B. Article 85 C. Article 86 D. Article 87

Q2. A Constitutional Amendment Bill under Article 368 requires: A. Simple majority in both Houses B. Special majority in Lok Sabha only C. Special majority in both Houses plus ratification by at least half the State legislatures for certain provisions D. Only the assent of the President

Q3. Parliamentary Privilege under Article 105 primarily means that: A. MPs cannot be arrested while Parliament is in session under any circumstances B. MPs have freedom of speech in Parliament and cannot be sued for what they say in the House C. Parliament has the power to amend the Constitution D. Parliament can override any court judgment

Q4. A "Privilege Motion" in Parliament is related to: A. Requesting the Speaker to allow an emergency debate B. Alleging breach of parliamentary privilege by a member or minister who misled the House C. Introducing a Private Member's Bill on privileges of citizens D. Seeking President's assent for a bill

Q5. The 131st Constitution Amendment Bill proposes: A. Increase in the number of Supreme Court judges B. Simultaneous elections to Lok Sabha and State Assemblies C. Women's reservation linked to delimitation D. Automatic removal of ministers upon arrest

Answers: Q1-B, Q2-C, Q3-B, Q4-B, Q5-C

6. One Nation One Election: JPC Chief Says Unlikely in Monsoon Session; 2029 Rollout Still Possible

Source: Outlook India, India's News | Category: Indian Polity & Constitutional Law

What Happened?

P.P. Chaudhary, Chairman of the JPC examining the Constitution (129th Amendment) Bill, 2024 (One Nation One Election — ONOE), stated on July 5, 2026 that the Bill is unlikely to be tabled in the Monsoon Session. Chaudhary confirmed the JPC has yet to consult Delhi, Goa, and Uttar Pradesh, and the report will only be submitted after building broader consensus. He noted that ONOE can still be implemented for the 2029 General Elections if the Bill is passed by July 2028. The 129th Amendment Bill was introduced in December 2024 by Law Minister Arjun Ram Meghwal and requires a two-thirds supermajority in both Houses plus ratification by at least half the States to amend the Constitution.

Why is this IMPORTANT for CLAT?

  • ONOE is one of the highest-frequency constitutional reform topics in CLAT preparation — understanding the Bill, its constitutional hurdles, arguments for/against, and the required amendment procedure is essential.
  • The two-thirds supermajority requirement and State ratification process under Article 368 is a direct knowledge point for CLAT.
  • The JPC process and how constitutional bills travel through Parliament tests CLAT-relevant procedural knowledge.
  • CLAT reading comprehension passages often feature arguments for and against ONOE — cost savings vs. federalism concerns, etc.

Key Static Concepts to Link

  • Constitution (129th Amendment) Bill, 2024: Proposes simultaneous elections to Lok Sabha and all State Assemblies; also a related bill to include Union Territories.
  • High-Level Committee (Ram Nath Kovind Committee): Set up in 2023 to examine ONOE; submitted report in March 2024 recommending implementation in two phases.
  • Article 368: Procedure for amendment — Bills amending federal provisions (like State elections) require ratification by at least 50% State legislatures.
  • Elections: Articles 324-329: Cover the Election Commission, qualification/disqualification for membership, electoral roll, conduct of elections.
  • No-Confidence Motion: A primary concern with ONOE — if the government loses a no-confidence vote mid-term, a fresh election may still be needed.
  • Fiscal Federalism: ONOE critics argue it could reduce voter choices and concentrate power at the Centre — a key argument about India's quasi-federal character.
  • P.P. Chaudhary: BJP MP and JPC Chairman; also a former Union Minister of State for Law.

Possible CLAT Questions

Q1. The Constitution (129th Amendment) Bill, 2024 proposes: A. Scrapping the Vice-President's role in Rajya Sabha B. Simultaneous elections to Lok Sabha and State Legislative Assemblies C. Reservation for OBCs in judicial appointments D. A fixed 5-year term for the Prime Minister

Q2. For a Constitutional Amendment Bill that involves federal provisions, Article 368 requires ratification by at least: A. One-third of State Legislatures B. Half of State Legislatures C. Two-thirds of State Legislatures D. All State Legislatures

Q3. The High-Level Committee that recommended One Nation One Election (ONOE) was headed by: A. Justice (Retd.) D.Y. Chandrachud B. Former President Ram Nath Kovind C. Former Chief Election Commissioner S.Y. Quraishi D. Former PM Manmohan Singh

Q4. If the ONOE Bill is passed by July 2028, according to JPC Chief P.P. Chaudhary, it could be implemented for: A. 2026 State elections B. 2027 Gujarat elections C. 2029 General Elections D. 2031 General Elections

Q5. One Nation One Election requires amending the Constitution by a "special majority," which under Article 368 means: A. Majority of total membership of each House B. Two-thirds of members present and voting, provided it is also a majority of the total membership of that House C. Simple majority in both Houses D. Three-fourths majority of members present and voting in both Houses

Answers: Q1-B, Q2-B, Q3-B, Q4-C, Q5-B

7. India's BRICS Chairmanship 2026: "BRICS" Theme and Global South Leadership

Source: BRICS2026.gov.in, NUS ISAS, Nikkei Asia | Category: International Relations / Global Summits & Multilateral Forums

What Happened?

India assumed the BRICS Chairmanship on January 1, 2026, succeeding Brazil. External Affairs Minister S. Jaishankar unveiled the theme on January 13: "Building for Resilience, Innovation, Cooperation and Sustainability (B.R.I.C.S.)". The 18th BRICS Summit is scheduled to be hosted by India in late 2026. In May 2026, BRICS foreign ministers convened in Delhi ahead of the leaders' summit. India's presidency is positioning itself as the voice of the Global South — avoiding an anti-Western stance while advocating for multipolarity, reform of global institutions (UN Security Council, IMF, WTO), and de-dollarisation discussions (though India has been cautious here). As BRICS chair, India is also managing the expanded group including Egypt, Ethiopia, Indonesia, Iran, Russia, Saudi Arabia, South Africa, UAE, and UAE — alongside original BRICS members Brazil, Russia, China, South Africa.

Why is this IMPORTANT for CLAT?

  • BRICS (an acronym itself) and multilateral organisations are direct CLAT GK topics — membership, headquarters, functions, and themes are commonly tested.
  • India's BRICS chairmanship 2026 and the theme make for excellent MCQ data points and comprehension passage themes.
  • The Global South concept and India's positioning tests analytical comprehension about geopolitics, international economic governance, and India's foreign policy doctrine.
  • CLAT passages on UN Security Council reform and India's quest for a permanent seat often reference BRICS as a supporting bloc.

Key Static Concepts to Link

  • BRICS: Originally BRIC (Brazil, Russia, India, China) — South Africa joined in 2010 making it BRICS; expanded in 2024 to include Egypt, Ethiopia, Iran, Saudi Arabia, UAE; Indonesia joined in January 2025.
  • 18th BRICS Summit 2026: To be hosted in India; theme: "Building for Resilience, Innovation, Cooperation and Sustainability."
  • New Development Bank (NDB): Established by BRICS in 2015; headquartered in Shanghai; India's former Finance Minister K.V. Kamath served as first President.
  • Global South: Loosely refers to developing and emerging economies in the Southern Hemisphere (Africa, Latin America, Asia) — a key diplomatic concept.
  • De-dollarisation: Push by some BRICS members (especially Russia and China) to reduce reliance on the US dollar in international trade — India has been cautious.
  • BRICS Contingent Reserve Arrangement (CRA): A framework to support members facing balance of payment problems — like a mini-IMF.
  • Article 51 of the Indian Constitution: Directive Principle directing India to promote international peace and foster respect for international law — foundational to India's multilateral engagement.

Possible CLAT Questions

Q1. India's theme for its BRICS Chairmanship 2026 is: A. "India Leads, World Heeds" B. "Building for Resilience, Innovation, Cooperation and Sustainability" C. "Unity in Diversity, Strength in Multilateralism" D. "Vasudhaiva Kutumbakam — One Earth, One Future"

Q2. Indonesia officially joined BRICS in: A. 2024 B. January 2025 C. January 2026 D. 2022

Q3. The New Development Bank (NDB) established by BRICS is headquartered in: A. New Delhi B. Beijing C. Shanghai D. Johannesburg

Q4. India's BRICS Chairmanship in 2026 follows which country's chairmanship? A. Russia B. South Africa C. China D. Brazil

Q5. Which Article of the Indian Constitution directs the State to promote international peace and foster respect for international law? A. Article 44 B. Article 48A C. Article 51 D. Article 39A

Answers: Q1-B, Q2-B, Q3-C, Q4-D, Q5-C

8. India's Carbon Credit Trading Scheme (CCTS): Compliance Obligations Now in Force for Seven Sectors

Source: ICAP Carbon Action Partnership, greenstory.io, Indian Carbon Market | Category: Environment, Climate, Energy & Sustainability

What Happened?

India's Carbon Credit Trading Scheme (CCTS), notified in June 2023 under the Energy Conservation (Amendment) Act, 2022, has now entered its compliance phase for seven industrial sectors: aluminium, cement, chlor-alkali, pulp and paper, petroleum refining, petrochemicals, and textiles — covering approximately 490 industrial units from FY2026. The scheme operates on a baseline-and-credit model: companies that reduce their Greenhouse Gas (GHG) emission intensity below their assigned target earn Carbon Credit Certificates (CCCs), which can be traded on power exchanges. India's CCTS is set to cover over 700 million tonnes of CO₂ equivalent, making it one of the world's largest emissions trading systems. India also launched its Carbon Market Portal at the Prakriti 2026 event, signalling its ambition to become a leading carbon market globally.

Why is this IMPORTANT for CLAT?

  • Carbon markets, emission trading, and climate regulation are recurring CLAT comprehension themes — students are expected to understand how carbon credits work and India's obligations under the Paris Agreement.
  • The Energy Conservation (Amendment) Act, 2022 providing the legal basis for CCTS is a key piece of legislation linking environment law and economic regulation.
  • CLAT passages on climate change and international environmental law often reference mechanisms like emission trading schemes, Paris Agreement NDCs, and India's targets.
  • The Basel, Rotterdam, Stockholm Conventions and India's domestic implementation frameworks are paired themes.

Key Static Concepts to Link

  • Energy Conservation (Amendment) Act, 2022: Amends the Energy Conservation Act, 2001; introduces the legal basis for CCTS and carbon credit certificates.
  • Carbon Credit Certificate (CCC): A tradeable certificate representing reduction of one tonne of CO₂ equivalent below the facility's assigned emission intensity target.
  • Paris Agreement, 2015: India's Nationally Determined Contributions (NDC) include achieving 50% of installed electric capacity from non-fossil fuel sources by 2030 (achieved in 2025, five years early); reducing emission intensity of GDP by 45% by 2030 (from 2005 levels).
  • Bureau of Energy Efficiency (BEE): Statutory body under the Energy Conservation Act, 2001; administers the CCTS.
  • Perform, Achieve and Trade (PAT) Scheme: The predecessor scheme that the CCTS is replacing; was an energy efficiency scheme for industrial units.
  • UNFCCC: United Nations Framework Convention on Climate Change — the parent treaty under which the Paris Agreement was adopted in 2015.
  • Article 48A: Directive Principle directing the State to protect and improve the environment and safeguard forests and wildlife.

Possible CLAT Questions

Q1. India's Carbon Credit Trading Scheme (CCTS) derives its legal basis from: A. The Environment Protection Act, 1986 B. The Energy Conservation (Amendment) Act, 2022 C. The National Green Tribunal Act, 2010 D. The Air (Prevention and Control of Pollution) Act, 1981

Q2. Carbon Credit Certificates (CCCs) under India's CCTS are awarded when a company: A. Installs solar panels in its premises B. Reduces its GHG emission intensity below its assigned target C. Switches entirely to renewable energy D. Plants a certain number of trees per unit of production

Q3. India's Nationally Determined Contribution (NDC) target for non-fossil fuel installed capacity was to achieve 50% by 2030; India achieved this target: A. On time in 2030 B. Two years early in 2028 C. Five years early in 2025 D. It has not yet been achieved

Q4. The Bureau of Energy Efficiency (BEE), which administers the CCTS, is a statutory body under which Act? A. Energy Conservation Act, 2001 B. Electricity Act, 2003 C. Environment Protection Act, 1986 D. National Green Tribunal Act, 2010

Q5. The predecessor to the CCTS that the scheme is replacing was: A. Green Credit Programme B. National Clean Air Programme C. Perform, Achieve and Trade (PAT) Scheme D. Carbon Tax Mechanism

Answers: Q1-B, Q2-B, Q3-C, Q4-A, Q5-C

9. Amit Shah Launches Delhi's 7-Million Tree Plantation Drive — Green Drive Portal Unveiled

Source: Business Standard | Category: Environment, Climate, Energy & Sustainability

What Happened?

Union Home Minister Amit Shah inaugurated Delhi's 7-Million Tree Plantation Drive on July 7, 2026, as part of the Delhi government's campaign to increase green cover and address air pollution in the national capital. Citizens can participate through the newly launched Green Drive Portal, where residents can book plantation slots, collect free saplings from government nurseries, invite the government's "Vriksh Rath" (a mobile sapling distribution vehicle), and register as "Delhi Green Warriors." The drive is part of India's broader push towards the National Clean Air Programme (NCAP) targets and aligns with Delhi's efforts to comply with graded response action plans addressing air quality.

Why is this IMPORTANT for CLAT?

  • Urban environmental policy, air pollution regulation, and citizen participation frameworks are active CLAT comprehension themes — especially given Delhi's chronic air quality crisis.
  • The National Clean Air Programme (NCAP) and Graded Response Action Plan (GRAP) are two key regulatory mechanisms students should know for environment-law questions.
  • The Green Drive Portal initiative links to e-governance and participatory democracy — both CLAT-relevant themes.
  • The role of the Union Home Minister in Delhi's governance reflects Delhi's unique constitutional status under Article 239AA — a recurring CLAT polity question.

Key Static Concepts to Link

  • Article 239AA: Grants Delhi special status as a National Capital Territory; creates a Legislative Assembly but with restrictions — Union Government retains control over land, police, and public order.
  • National Capital Territory of Delhi Acts: The NCT of Delhi Acts and the Government of National Capital Territory of Delhi (Amendment) Act, 2021 have altered the power balance between the elected government and the Lieutenant Governor.
  • National Clean Air Programme (NCAP): Launched in 2019; targets a 40% reduction in Particulate Matter (PM2.5 and PM10) concentration by 2026 (base year 2017) in at least 100 non-attainment cities.
  • Graded Response Action Plan (GRAP): A set of emergency measures for Delhi-NCR triggered at specific air quality index (AQI) levels — Stage 1 (Poor), Stage 2 (Very Poor), Stage 3 (Severe), Stage 4 (Severe+).
  • Air (Prevention and Control of Pollution) Act, 1981: Key legislation for air quality regulation; established pollution control boards.
  • Article 48A: Directive Principle — State shall endeavour to protect and improve the environment and safeguard forests and wildlife.
  • Mission LiFE (Lifestyle for Environment): India's global initiative urging citizens to adopt eco-friendly behaviour — aligns with the Green Warriors concept.

Possible CLAT Questions

Q1. Delhi's special constitutional status as a National Capital Territory is governed by which Article of the Constitution? A. Article 243 B. Article 239AA C. Article 246 D. Article 370

Q2. The National Clean Air Programme (NCAP) was launched in which year? A. 2015 B. 2017 C. 2019 D. 2021

Q3. The Graded Response Action Plan (GRAP) is primarily used for: A. Managing flood relief in Delhi B. Emergency air quality management in Delhi-NCR C. Monitoring groundwater levels in Delhi D. Regulating industrial effluents in the Yamuna

Q4. Which Article of the Indian Constitution contains a Directive Principle to protect and improve the environment? A. Article 44 B. Article 47 C. Article 48A D. Article 51A(g)

Q5. "Delhi Green Warriors" is a citizen initiative launched under: A. Smart Cities Mission B. Green Drive Portal — Delhi's 7-Million Tree Plantation Drive C. Swachh Bharat Abhiyan D. Mission LiFE (Lifestyle for Environment)

Answers: Q1-B, Q2-C, Q3-B, Q4-C, Q5-B

10. EPF Scheme 2026: New Partial Withdrawal Rules — 25% Minimum Balance Mandate

Source: PIB, EPFO Notifications | Category: Major National Policies / Government Schemes

What Happened?

The Central Government notified the Employees' Provident Fund (EPF) Scheme, 2026, which came into effect on June 29, 2026, introducing a significant change to partial withdrawal rules for EPFO members. Under the revised scheme, members must retain at least 25% of the balance in their EPF account before making any partial withdrawal — a new floor designed to prevent premature depletion of retirement savings. The EPF Scheme falls under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. EPFO currently manages over 300 million subscriber accounts and is one of the world's largest social security organisations. The partial withdrawal facility is available for specific purposes such as medical emergencies, housing, education, and marriage.

Why is this IMPORTANT for CLAT?

  • EPFO and labour law are recurring CLAT GK topics — the EPF Act 1952, its coverage, and withdrawal rules are tested in both MCQ and comprehension passages.
  • The social security framework for workers (EPF, ESI, Gratuity, etc.) connects to Directive Principles under Article 41-43 of the Constitution — a favourite CLAT linkage point.
  • The 25% retention rule reflects a policy tension between workers' immediate needs and long-term retirement security — a potential CLAT comprehension passage argument.
  • CLAT tests awareness of labour welfare laws especially for passages on India's formal vs. informal economy and gig workers.

Key Static Concepts to Link

  • Employees' Provident Funds and Miscellaneous Provisions Act, 1952: Governs EPF; applicable to establishments with 20 or more employees in specified industries.
  • EPFO (Employees' Provident Fund Organisation): Statutory body under the Ministry of Labour and Employment; one of the largest social security providers globally.
  • Employee's Pension Scheme (EPS), 1995: A related scheme providing pension; 8.33% of employer's contribution goes to EPS.
  • Article 41 (DPSP): Right to work, to education, and to public assistance in cases of unemployment, old age, sickness, and disablement.
  • Article 43 (DPSP): State shall endeavour to secure living wages and conditions of work for all workers.
  • Gratuity (Payment of Gratuity Act, 1972): Another pillar of worker social security — payable after 5 years of continuous service.
  • Universal Account Number (UAN): A 12-digit unique number allotted to every EPF member, enabling portability of provident fund across employers.

Possible CLAT Questions

Q1. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies to establishments with: A. 10 or more employees B. 20 or more employees C. 50 or more employees D. All establishments regardless of employee count

Q2. Under the EPF Scheme 2026, members must retain at least what percentage of their EPF balance before making a partial withdrawal? A. 10% B. 20% C. 25% D. 33%

Q3. Which Directive Principle specifically directs the State to secure the right to work and public assistance in cases of unemployment and old age? A. Article 39 B. Article 40 C. Article 41 D. Article 43

Q4. The Employee's Pension Scheme (EPS) is funded from: A. The entire employer contribution of 12% B. A portion (8.33%) of the employer's contribution to EPF C. The entire employee contribution D. Government subsidy alone

Q5. The Universal Account Number (UAN) for EPF members is: A. A 10-digit number linked to Aadhaar B. A 12-digit unique identifier enabling EPF portability across employers C. A 16-digit number linked to PAN D. A 9-digit number assigned only to government employees

Answers: Q1-B, Q2-C, Q3-C, Q4-B, Q5-B

11. RBI Releases Draft Guidelines on AI Model Risk Management for Banks and NBFCs

Source: Banking Finance India, Angel One, RBI | Category: Economy: Regulation & New Financial Instruments

What Happened?

The Reserve Bank of India (RBI) released the Draft Guidance on Regulatory Principles for Model Risk Management, 2026 — a first-of-its-kind framework governing the use of Artificial Intelligence (AI) and automated models in banks, NBFCs, cooperative banks, asset reconstruction companies, and credit information companies. The draft mandates: (a) board-approved frameworks for AI governance; (b) human oversight of all AI-driven financial decisions; (c) independent validation of models; (d) control over third-party models; (e) customer disclosure where AI influences credit or pricing decisions; and (f) a "kill switch" to deactivate risky models. Public comments are open until July 24, 2026. This comes in context of India's rapidly expanding FinTech sector and increasing use of AI in credit scoring, fraud detection, and algorithmic trading.

Why is this IMPORTANT for CLAT?

  • AI regulation and financial regulation intersect — increasingly a CLAT comprehension passage theme, especially as India develops its AI governance framework.
  • The RBI's regulatory powers and role in protecting consumers (financial disclosure, customer rights) connects to fundamental rights (Article 21 — right to life/dignity) and consumer protection law.
  • The "kill switch" concept and human oversight mandate in AI regulation mirrors broader global debates about AI accountability — rich comprehension material.
  • CLAT tests institutional knowledge — knowing what the RBI does, which entities it regulates, and its statutory powers under the RBI Act 1934 and Banking Regulation Act 1949.

Key Static Concepts to Link

  • Banking Regulation Act, 1949: Primary legislation governing commercial banks in India; gives RBI supervisory powers.
  • NBFC (Non-Banking Financial Company): A company registered under the Companies Act that provides financial services but does not hold a banking licence; regulated by the RBI.
  • Credit Information Companies (CICs): Entities like CIBIL, Experian, Equifax that collect and maintain credit data; regulated under Credit Information Companies (Regulation) Act, 2005.
  • Asset Reconstruction Companies (ARCs): Companies that acquire NPAs (Non-Performing Assets) from banks; regulated under the SARFAESI Act, 2002.
  • Model Risk: The potential for adverse consequences arising from using incorrect or misused models (e.g., flawed AI credit scoring causing wrong lending decisions).
  • FinTech Regulation in India: Governed across RBI (payments, lending), SEBI (investment platforms), IRDAI (insurance tech) — no single unified FinTech law yet.
  • Consumer Protection Act, 2019: Includes provisions on unfair trade practices and misleading advertising — applicable to financial services.

Possible CLAT Questions

Q1. The RBI's Draft Model Risk Management Guidelines 2026 primarily govern: A. The use of social media by bank employees B. AI and automated model use in banks, NBFCs, cooperative banks, and credit information companies C. Cryptocurrency trading by bank customers D. Investment advice provided by stock brokers

Q2. Credit Information Companies like CIBIL are regulated under which Act? A. Reserve Bank of India Act, 1934 B. Banking Regulation Act, 1949 C. Credit Information Companies (Regulation) Act, 2005 D. Securities Contracts (Regulation) Act, 1956

Q3. Asset Reconstruction Companies (ARCs) that acquire NPAs from banks are regulated under: A. Insolvency and Bankruptcy Code, 2016 B. SARFAESI Act, 2002 C. Companies Act, 2013 D. SEBI Act, 1992

Q4. A "kill switch" in the context of RBI's AI model risk guidelines refers to: A. The power of the RBI to shut down a failing bank B. A mechanism to deactivate risky AI models in financial institutions C. A cyber-security protocol for banking applications D. An emergency button to suspend all digital transactions

Q5. Which legislative framework gives RBI supervisory and regulatory powers over commercial banks? A. RBI Act, 1934 only B. Banking Regulation Act, 1949 only C. Both the RBI Act, 1934 and the Banking Regulation Act, 1949 D. Companies Act, 2013

Answers: Q1-B, Q2-C, Q3-B, Q4-B, Q5-C

12. Operation Sindoor Row: Congress Prepares Privilege Motion Against Rajnath Singh Over Casualty Figures

Source: BusinessToday, Open Magazine, Business Standard | Category: Indian Polity & Constitutional Law / Parliamentary Proceedings

What Happened?

The Indian National Congress is preparing to press privilege proceedings against Defence Minister Rajnath Singh in the upcoming Monsoon Session of Parliament (July 20-August 13, 2026), alleging that he misled Parliament by providing false or misleading information about the casualty figures of Indian soldiers during Operation Sindoor — the military operation India conducted against Pakistan following the Pahalgam terror attack in April-May 2025. Congress alleges that the government underreported casualties to manage political fallout. Meanwhile, the BJP has contested these allegations. The Operation Sindoor controversy also intersects with President Trump's false claim that the US brokered the India-Pakistan ceasefire — firmly denied by India.

Why is this IMPORTANT for CLAT?

  • Parliamentary Privilege and Privilege Motions are core CLAT polity topics — Articles 105 and 194, the power of Houses to punish for breach of privilege, contempt of Parliament.
  • The Operation Sindoor context (India's military response to terrorism, ceasefire, India-Pakistan relations) is a high-priority CLAT current affairs theme for both Legal Reasoning (national security vs. civil liberties) and GK.
  • The concept of ministerial accountability to Parliament (Article 75(3), 164) and parliamentary oversight of the executive — especially on defence matters — is a recurring CLAT comprehension theme.
  • The India-US-Pakistan trilateral dynamic and Trump's claim of ceasefire brokering tests CLAT knowledge on India's foreign policy positions and diplomatic assertions.

Key Static Concepts to Link

  • Parliamentary Privilege (Article 105): Members of Parliament have freedom of speech in Parliament and cannot be summoned to any court for anything said or done in Parliament; Parliament can punish those who breach its privileges.
  • Privilege Motion: A notice by an MP alleging breach of privilege by another member or a minister; referred to the Privileges Committee.
  • Article 75(3): The Council of Ministers shall be collectively responsible to the House of the People — the foundation of ministerial accountability.
  • Operation Sindoor (May 2025): India's military strikes against terrorist infrastructure in Pakistan and Pakistan-Occupied Kashmir (PoK) following the Pahalgam attack; India's first cross-border military operation since 1971 at scale.
  • Defence Ministry: Headed by the Cabinet Minister for Defence (Rajnath Singh); the ministry oversees the three armed forces, DRDO, and defence production.
  • Question Hour in Parliament: The first hour of a parliamentary session devoted to oral questions to ministers — a key accountability mechanism.
  • Contempt of Parliament: Actions that obstruct Parliament or its members in the discharge of their functions, or bring Parliament into disrepute.

Possible CLAT Questions

Q1. Parliamentary Privilege in India under Article 105 primarily covers: A. The right of MPs to maintain secrecy about Cabinet deliberations B. Freedom of speech in Parliament and immunity from court proceedings for parliamentary speech or votes C. The right of Parliament to override Supreme Court judgments D. Exemption of MPs from paying income tax

Q2. A "Privilege Motion" in Parliament is filed when: A. An MP wants to introduce a Private Member's Bill B. An MP alleges that a minister or fellow MP has committed a breach of parliamentary privilege C. The Speaker wants to adjourn the House without notice D. Parliament seeks to impeach the President

Q3. Article 75(3) of the Indian Constitution establishes which principle of parliamentary democracy? A. Separation of Powers between Parliament and Judiciary B. Collective Responsibility of the Council of Ministers to the Lok Sabha C. Individual Responsibility of each minister to the President D. Bicameralism as a fundamental feature

Q4. Operation Sindoor was India's military response to: A. Chinese incursion at Galwan Valley B. Pakistan's shelling of Indian border posts C. Terrorist attack at Pahalgam in April-May 2025 D. Bangladesh border dispute

Q5. The Privileges Committee in the Lok Sabha is constituted to: A. Examine bills related to fundamental rights B. Investigate alleged breaches of parliamentary privilege C. Scrutinise the Union Budget D. Recommend salaries for MPs

Answers: Q1-B, Q2-B, Q3-B, Q4-C, Q5-B

📊 Quick Revision Snapshot

# Topic Key Fact CLAT Category
1 PM Modi in Indonesia BrahMos + Astra missile deal (~$630M); Bintang Adipurna honour; Sabang Port framework International Relations
2 130th Constitution Amendment Bill JPC to retain 30-day custody clause for PM/CMs; report due July 17 Indian Polity & Constitutional Law
3 SC Zero-Tolerance: AI Fake Judgments NCLT/NCLAT orders set aside; BCI to set up committee; advocate misconduct ruling Judiciary & Legal Ethics
4 RBI vs Cryptocurrency RBI tells Parliament: VDAs threaten economy; containment strategy; prohibition on table Economy & Financial Regulation
5 Parliament Monsoon Session 2026 July 20–Aug 13; 19 sittings; 130th/131st CA Bills, ONOE, FCRA Amendment on agenda Polity & Parliamentary Proceedings
6 One Nation One Election JPC Chief: Bill unlikely in Monsoon Session; 2029 rollout still possible Polity & Electoral Law
7 India BRICS Chairmanship 2026 Theme: "Building for Resilience, Innovation, Cooperation and Sustainability"; 18th BRICS Summit in India International Relations
8 Carbon Credit Trading Scheme (CCTS) Compliance live for 7 sectors (FY2026); covers 700M tonnes CO₂e; Energy Conservation Act 2022 Environment & Sustainability
9 Delhi 7-Million Tree Drive Amit Shah launches Green Drive Portal; "Vriksh Rath"; "Delhi Green Warriors" on July 7 Environment Policy
10 EPF Scheme 2026 New rule: must retain 25% balance before partial withdrawal; effective June 29, 2026 Labour Law & Social Security
11 RBI AI Model Risk Guidelines Draft framework for banks/NBFCs: board oversight, human review, kill switch; comments by July 24 Economy & FinTech Regulation
12 Operation Sindoor — Privilege Motion Congress to press privilege motion vs Rajnath Singh over casualty figures in Monsoon Session Polity & Parliamentary Accountability

📌 Prepared by CLATians Editorial Desk | For CLAT 2027 & CLAT 2028 Preparation | Based on The Hindu, Indian Express, Times of India, PIB, ANI

#########################

Share this article

WhatsAppShare

Start Your CLAT Journey with CLATians

Expert coaching, 150+ mock tests, and personalized mentorship. Join 5000+ successful students.

Enroll Now →📞 Free Counselling