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Daily-mcqs 26 Aug 2026

Current Affairs MCQs for UPSC & State PSC Exams 26 Aug 2026

Current Affairs MCQs for UPSC & State PSC Exams

Q1:

Consider the following statements regarding the definition of "industry" under Indian labour jurisprudence:

In the landmark Bangalore Water Supply & Sewerage Board v. R. Rajappa (1978) case, a seven-judge Bench held that a profit motive is mandatory for an institution to qualify as an "industry".

The "Triple Test" evolved in the 1978 judgment includes systematic activity, organized cooperation between employer and employee, and production/distribution of goods or services to satisfy human wants.

A recent nine-judge Constitution Bench ruled that the expansive interpretation of the 1978 ruling will not govern future disputes under the Industrial Relations Code (IRC), 2020.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: C

Explanation:

Statement 1 is incorrect: In the Bangalore Water Supply & Sewerage Board v. R. Rajappa (1978) case, the Supreme Court explicitly held that a profit motive is unnecessary for an activity to qualify as an industry. Charitable, philanthropic, and non-profit institutions could also fall within its ambit if they satisfied the test.

Statement 2 is correct: The 1978 judgment formulated the famous Triple Test, requiring systematic activity, cooperation between employer and employee, and production or distribution of goods or services to satisfy human wants and wishes.

Statement 3 is correct: The Supreme Court’s nine-judge Constitution Bench held that the expansive interpretation established in the 1978 case will not govern future disputes arising under the new Industrial Relations Code (IRC), 2020.

Q2:

With reference to Section 2(p) of the Industrial Relations Code (IRC), 2020, consider the following statements:

It defines "industry" through systematic activity carried out via cooperation between an employer and workers, applying irrespective of capital investment or profit motive.

It expressly includes all charitable, social, and philanthropic activities within the definition of an industry.

It excludes specified government activities relating to defence research, atomic energy, and space exploration.

Which of the statements given above are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: B

Explanation:

Statement 1 is correct: Section 2(p) of the Industrial Relations Code, 2020, defines industry via systematic activity and worker-employer cooperation for producing or distributing goods and services, explicitly noting that capital investment or profit motive is irrelevant.

Statement 2 is incorrect: Section 2(p) expressly excludes certain charitable, social, and philanthropic activities from the definition of an industry, marking a departure from the broader sweep of the 1978 Bangalore Water Supply ruling.

Statement 3 is correct: The definition under Section 2(p) expressly carves out exclusions for sovereign/strategic government activities, including those relating to defence research, atomic energy, and space exploration.

Q3:

Consider the following statements regarding the PM CARES Fund (Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund):

It is a statutory body established directly under an Act of Parliament to handle national health emergencies.

The Prime Minister is the ex-officio Chairman of the fund, and the Ministers of Defence, Home Affairs, and Finance act as ex-officio trustees.

Contributions made to the PM CARES Fund qualify as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.

The money collected and disbursed through the PM CARES Fund forms part of the Consolidated Fund of India.

Which of the statements given above are correct?

A: 1 and 2 only

B: 1,3 and 4 only

C: 2 and 3 only

D: 1, 2, 3 and 4

Show

Answer: C

Explanation:

Statement 1 is incorrect: The PM CARES Fund is not a statutory body. It is registered as a public charitable trust under the Registration Act, 1908.

Statement 2 is correct: The Prime Minister is the ex-officio Chairman of the trust, and the Minister of Defence, Minister of Home Affairs, and Minister of Finance are the ex-officio trustees.

Statement 3 is correct: Donations and contributions made by companies to the PM CARES Fund qualify as eligible Corporate Social Responsibility (CSR) expenditure under Schedule VII of the Companies Act, 2013.

Statement 4 is incorrect: The fund operates as an extra-budgetary mechanism and does not go into the Consolidated Fund of India. It relies entirely on voluntary contributions from individuals and organizations without government budgetary support.

Q4:

With reference to the PM CARES Fund and the National Disaster Response Fund (NDRF), consider the following statements:

While the PM CARES Fund is managed via an independent audit framework, the NDRF operates under the Comptroller and Auditor General (CAG) audit framework.

The NDRF is a statutory fund constituted under the Disaster Management Act, 2005, whereas PM CARES is structured as a public charitable trust.

The Supreme Court of India directed the automatic transfer of all unspent balances from the PM CARES Fund to the NDRF during the COVID-19 litigation.

Which of the statements given above are correct?

A: 1 and 2 only

B: 2 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: A

Explanation:

Statement 1 is correct: PM CARES accounts are audited by an independent auditor appointed by the trust, whereas statutory funds like the NDRF are subject to audit oversight by the Comptroller and Auditor General (CAG) of India.

Statement 2 is correct: NDRF is a statutory fund established under Section 46 of the Disaster Management Act, 2005, for meeting response and relief during severe disasters. PM CARES is a public charitable trust created in March 2020.

Statement 3 is incorrect: In 2020, the Supreme Court declined a petition seeking the transfer of funds from PM CARES to the NDRF, noting that both are distinct funds with separate legal structures, objectives, and audit frameworks.

Q5:

Consider the following statements regarding the "creamy layer" concept in Indian reservations:

The concept of the creamy layer was first formally introduced following the landmark Indra Sawhney v. Union of India (1992) judgment.

The creamy layer exclusion criteria apply equally to Other Backward Classes (OBCs), Scheduled Castes (SCs), and Scheduled Tribes (STs).

The exclusion of the creamy layer is strictly based on annual parental income and does not account for the social or occupational status of the parents.

Which of the statements given above is/are correct?

A: 1 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: A

Explanation:

Statement 1 is correct: The concept of identifying and excluding the "creamy layer" (the advanced sections) among the backward classes was mandated by the Supreme Court in the historic Indra Sawhney judgment of 1992 to ensure that reservation benefits trickle down to the most needy.

Statement 2 is incorrect: The creamy layer test is exclusively applicable to OBC reservations. The Supreme Court and legal precedents (such as Ashoka Kumar Thakur v. Union of India) have repeatedly clarified that the creamy layer concept does not apply to SCs and STs, whose backwardness is rooted in historical social exclusion and untouchability rather than economic standing alone.

Statement 3 is incorrect: The Supreme Court reiterated that parental income alone cannot be the sole determinant for creamy-layer status. Exclusion is multi-dimensional, factoring in social status, constitutional positions, rank in public employment, and occupational categories as outlined in the original 1993 Department of Personnel and Training (DoPT) guidelines.