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Which one of the following statements is true with regard to theory of causation of Vedānta ?

This question was previously asked in
MH SET 2020 Paper 2 Philosophy Question Paper (27-Dec-2020)
The correct answer is

Vivartavāda is compatible with satkāryavāda

Indian theories of causation divide into satkāryavāda, the view that the effect pre-exists in its material cause, and asatkāryavāda or ārambhavāda, the Nyāya-Vaiśeṣika view that the effect is a new beginning not present in the cause.

Satkāryavāda has two forms: pariṇāmavāda, in which the cause really transforms into the effect (Sāṅkhya, Rāmānuja's Viśiṣṭādvaita), and vivartavāda, in which the effect is only an apparent manifestation of the cause, as the snake appears on the rope (Śaṅkara's Advaita Vedānta).

So vivartavāda is a species of satkāryavāda: since the world is only an appearance of Brahman, it is never something new over and above the cause, and the two are compatible.

Vivartavāda cannot be compatible with ārambhavāda, which treats the effect as a real new creation; it is not incompatible with satkāryavāda, being one of its forms; and satkāryavāda is not incompatible with pariṇāmavāda, which is its other form.

Hence, Vivartavāda is compatible with satkāryavāda.

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