Author: B2B

Chapter-I and Chapter-II of Part II of RPA, 1951 provides for qualifications for Members of Parliament (MPs) and Members of State Legislature (MLAs), which can be discussed under following heads:

Qualifications for Membership of Parliament

Qualification for membership of the Council of States (section 3 of RPA, 1951)

A person has to be an elector for a parliamentary constituency in India to be qualified to be chosen as a representative of any State or UT in the Council of States.

Thus, it is not necessary for a person to be an elector in that particular state or UT where he is contesting to be elected as a representative rather he can be an elector anywhere in India.

Section 3 of RPA in its original form required the condition of elector ‘in that state or territory’, but this requirement was dispensed by Representation of People (Amendment) Act, 2003 and it was substituted by elector ‘in India’.

In 2006, the Supreme Court upheld the validity of this change in ‘Kuldip Nayar case’.

Qualifications for membership of the House of the People (section 4 of RPA, 1951)

1. In order to contest a seat reserved for the Scheduled Castes/Scheduled Tribe (other than those in the autonomous districts of Assam) in any State or Union Territory, he must be a member of any of the Scheduled Castes/Tribe, whether of that State or Union Territory or of any other State or Union Territory (excluding the tribal areas of Assam), and must be elector for any Parliamentary Constituency. However, a member of Schedule Caste or Schedule Tribe can also contest a seat not reserved for them.
2. In order to contest a seat reserved for the Scheduled Tribes in the autonomous districts of Assam, he must be a member of any of those Scheduled Tribes and must be an elector for the Parliamentary constituency in which such seat is reserved or for any other Parliamentary constituency comprising any such autonomous district; The protective mechanism as in case of Assam mentioned above applies to Lakshadweep and Sikkim.
3. In order to contest for any other seat, he must be an elector for any Parliamentary constituency.

Qualifications for membership of a State Legislature (Section 5 of RPA, 1951)

1. In order to contest a seat reserved for the Scheduled Castes or for the Scheduled Tribes of that State or Union Territory, he must be a member of any of those castes or of those tribes, as the case may be, and must be an elector for any Assembly constituency in that State or Union Territory;
2. In order to contest a seat reserved for an autonomous district of Assam, he must be a member of a Scheduled Tribe of any autonomous district and must be an elector for the Assembly constituency in which such seat or any other seat is reserved for that district; and
3. In order to contest any other seat, he must be an elector for any Assembly constituency in that State or Union Territory.
4. In order to be qualified to be chosen to fill any seat allocated to the Tuensang district in the Legislative Assembly of Nagaland for the period referred to in clause (2) of article 371A, he must be a member of the regional council referred to in that article.
5. Section 5A mentions some special provisions regarding Qualifications for membership of Legislative Assembly of Sikkim.

Qualifications for membership of a Legislative Council—

1. In order to be qualified to contest a seat of Legislative Council of a State or Union Territory to be filled by election, he must be an elector for any Assembly constituency in that State.
2. In order to be qualified to be chosen for a seat in the Legislative Council of a State or Union Territory to be filled by nomination by the Governor he must be an ordinarily resident in the State or Union Territory.

Provisions in RPA 1951 related to disqualifications for voting

Section 11A provides for disqualification arising out of a conviction and corrupt practices. It mentions that if any person is convicted of an offence punishable under Section 171E (offence of bribery) or Section 171F (offence of undue influence or personation at an election) of the Indian Penal Code; or under Section 125 (Promoting enmity between classes in connection with election) or section 135 (removal of ballot paper from polling station) or Section 136(2)(a) (found guilty of some electoral offences, while being an officer in connection with the election) of RPA1951, he will be disqualified for voting at any election for a period of six years from the date of conviction or from the date on which the order takes effect.

Further, it provides that a person disqualified by a decision of the President under 8A (through election petition for corrupt practice) for any period will be disqualified for the same period for voting at any election. However, Section 11B provides that election commission may, for reason to be recorded, remove any disqualification except under section 8A.

Process of notification of general elections

Election to the House of People

For general election to the House of the people, the President, by one or more notifications published in the Gazette of India on such date or dates, as may be recommended by the Election Commission, calls upon all Parliamentary constituencies to elect members.

No such notification can be issued at any time earlier than six months prior to the date on which the duration of that House would expire, except in the case of dissolution of the existing House of People.

Election to the Council of States

In case of biennial election to the Council of State for the purpose of filling the seats of members of the Council of States retiring on the expiration of their term of office the President, by one or more notifications published in the Gazette of India on such date or dates as may be recommended by the Election Commission, calls upon the elected members of the Legislative Assembly or, as the case may be, the members of the electoral college, of each State concerned to elect members.

No such notification can be issued more than three months prior to the date on which the term of office of the retiring members is due to expire.

Similarly for the elections to state legislature, Governor plays the role mentioned for the President in case of House of People under exactly same conditions.

Elections form the support of Indian Democratic system. Indian democratic setup gives on us the right to elect the representatives of the state.

The Representation of People Act, 1951 is an act of Parliament of India which provides the conduct of elections of the Houses of Parliament and to the House or Houses of the Legislature of each State, the qualifications and disqualifications for membership of those Houses, the corrupt practices and other offences at or in connection with such elections and the decision of doubts and disputes arising out of or in connection with such elections.

The Act was endorsed by the provisional parliament under Article 327 of Indian Constitution, before the first general election. The act also manages issues like qualification and disqualification of members of both houses of Parliament (Lok Sabha and Rajya Sabha) and the state legislatures (State Legislative Assembly and State Legislative Council).

The acts were modified many times but one of the noteworthy alterations is the Representation of the People (Amendment) Act, 1966 (47 of 1966), which eliminated the election tribunals and transferred the election petitions to the High Court whose orders can be appealed to Supreme Court.

However, election disputes regarding the election of President and Vice-President are directly heard by the Supreme Court.

It was established that after India’s independence, an elected constituent assembly was set up to develop the constitution. Most of the articles of the constitution came into force on 26 January 1950, the Republic Day. Part XXI of the constitution contained the translational provisions.

Articles 379 and 394 of Part XXI which contained provisions for provisional parliament and other articles which contained provisions like citizenship came into force on 26 November 1949, the date on which the constitution was drafted. The provisional parliament enacted the Act vide Act No.43 of 1951 for the first general election conducted on 25 October 1951.

Representation of Peoples Act 1950 (RPA Act 1950) offers for the following conduct

1. Qualification of voters
2. Preparation of electoral rolls
3. Delimitation of constituencies
4. Allocation of seats in the Parliament and state legislatures

Highpoints of RPA Act 1951

1. Actual conduct of elections
2. Administrative machinery for conducting elections
3. Poll
4. Election offences
5. Election disputes
6. By-elections
7. Registration of political parties

The Representation of People Act, 1951 has great significance for good functioning of Indian egalitarianism because it checks the entry of persons with illegal background into the representative bodies.

Prominent features of the Representation of People’s Act

1. Part 21 of the Indian Constitution drafted by the Constituent Assembly had mentioned for a provisional parliament. The provisional parliament enacted Representation of People’s Act 1951, so that general elections could be conducted according to the rules mentioned.
2. Citation is Article No 43 of 1951.
3. Representation of People’s Act contains 13 parts (2 parts added as amendments). Each part is divided into different sections making it a total of 171 numbered sections (including those sections which were repealed later.).
4. Expressions not used in 1951 act, but listed in Representation of the People Act 1950 (43 of 1950) have the same meaning.
5. Chief Electoral Officer is mentioned in section 13A.
6. Corrupt practices are mentioned in section 123.
7. Election means an election to fill a seat or seats in either House of Parliament or in the House or either House of the Legislature of a State other than the State of Jammu and Kashmir.

The recent RPA (Amendment and Validation) bill which was initiated in Rajya Sabha during monsoon session was enacted on the same day and later was sent to Lower House Lok Sabha where the bill got finally passed on September 06, 2013.

The Bill seeks to modify the Representation of People Act, 1951 (RPA, 1951).

The two major amendments were done in Bill that includes:

1. A person can file his nomination even though he is shunned from being voting owing to be in jail or in police custody during elections or before.
2. The past act has not defined on what grounds, a person can be disqualified. In this act the grounds are clearly stated as disqualification can be on conviction for certain specified offences and can be on no other ground. As a result if one is proved for any conviction of any one of the offences, then his/her name will be wiped off from electoral roll and shall cease to be a voter.

What is Section 8 of Representation of Peoples Act 1951?

Section 8 deals with Disqualification of representatives on conviction for certain offences. This section states that:

• A person convicted of an offence punishable under certain acts of Indian Penal Code, Protection of Civil Rights Act 1955, Unlawful Activities (Prevention) Act 1967, Prevention of Corruption Act 1988, Prevention of Terrorism Act 2002 etc. shall be disqualified, where the convicted person is sentenced to —

1. only fine, for a period of six years from the date of such conviction;
2. imprisonment, from the date of such conviction and shall continue to be disqualified for a further period of six years since his release.

• A person convicted for the contravention of—

1. any law providing for the prevention of hoarding or profiteering; or
2. any law relating to the adulteration of food or drugs; or
3. any provisions of the Dowry Prohibition Act, 1961

• A person convicted of any offence and sentenced to imprisonment for not less than two years [other than any offence referred to in sub-section (1) or sub-section (2)] shall be disqualified from the date of such conviction and shall continue to be disqualified for a further period of six years since his release.
• Notwithstanding anything 8[in sub-section (1), sub-section (2) or sub-section (3)] a disqualification under either subsection shall not, in the case of a person who on the date of the conviction is a member of Parliament or the Legislature of a State, take effect until three months have elapsed from that date or, if within that period an appeal or application for revision is brought in respect of the conviction or the sentence, until that appeal or application is disposed of by the court.

The fourth point above was the controversial Section 8(4) clause of the Representation of Peoples Act which was struck down by the Supreme Court calling the Act ultra-vires of the Constitution and providing for disqualification of MPs/MLAs on the day of their conviction.

How is RPA, 1951 different from the provisions related to elections in Constitution of India?

Part XV of Indian Constitution is ELECTIONS, which includes Articles 324 to 329. This part of the Constitution provides for Election Commission (Art.324), universal suffrage (Art.325) and adult suffrage (Art.326).

Article 327 enables Parliament to enact provisions for elections and Article 328 provides that states can enact provisions for house or houses of the state legislature, if the Centre has not provided for the same.

Under Article 329, courts are barred from questioning the Delimitation Act brought by the Parliament and it also mentions that disputes related to elections can be called in question only by an election petition in a manner provided by and to the authority decided by the appropriate legislature.

Accordingly, the Parliament under Article 327 enacted certain provisions, among others, namely:

1. The Representation of People Act 1950, which provides for allocation of seats and delimitation of constituencies of the Parliament and state legislature, officers related to conduct of elections, preparation of electoral rolls and manner of filling seats in the Council of States allotted to Union Territories.
2. The Representation of People Act, 1951, which provides for the conduct of elections of the Houses of Parliament and to the House or Houses of the Legislature of each State, the qualifications and disqualifications for membership of those Houses, the corrupt practices and other offences at or in connection with such elections and the decision of doubts and disputes arising out of or in connection with such elections.
3. Delimitation Commission Act of 1952, which provides for the readjustment of seats, delimitation and reservation of territorial constituencies and other related matters.
4. The Presidential and Vice-Presidential Election Act 1952, which provides for the conduct of Presidential and Vice- Presidential election and mechanism for the settlement of any dispute arising out of such elections.

Law Commission is an executive body that is intended to work for legal improvement. The members of the commission are mainly legal experts, who work as per the government’s mandate. The Commission is established for a fixed tenure and works as an advisory body to the Law Ministry.

The first Law Commission was established during the British regime in 1834. Before independence, India saw three more commissions being established. The first such commission in independent India was set up for a three-year term in 1955. Since then, 19 more Commissions have been established.

The Commission is supervised by a full-time Chairperson. Its membership primarily comprises legal experts, who are entrusted a mandate by the Government.

The 21st Law commission would be comprised of a full-time Chairperson, four full-time Members (including a Member-Secretary), Secretary, and Department of Legal Affairs as ex offcio Member, Secretary, Legislative Department as ex offcio Member.

The Commission is established for a fixed tenure (usually three years) and works as an advisory body to the Ministry of Law and Justice.

Before finalising its recommendations, the Commission needs to consult the law ministry. Law Commission works in synchronisation and under the general instruction of Ministry of Law and Justice. It generally acts as primary commission for law reform in the country.

Internally, the Law Commission works in a research-oriented manner. The Law Commission employs research analysts and law students who work in a research-oriented manner. The commission comprises of research employees of different ranks and secretarial staff who looks after the day-to-day functioning.

This executive body works towards outlining the problems and determining areas for law reform. After due diligence and extensive research, it prepares report, which is sent to the Law Ministry. Once the proposals are cleared by other relevant ministries, action is taken to implement those recommendations.

Although an ad-hoc body but the Law Commission has played a major role in law reform in India. At times, it’s also critical of the government’s policies.

The Supreme Court often follows the recommendations of the commission. However, since the commission’s proposals are not binding on the government, often the critical recommendations made by it are not implemented. The Law commission also works on specific issues when requested by the Supreme Court.

The Commission evaluations and judicial administration ensures that it is responsive so that delays are eliminated, arrears are cleared and disposal of cases is quick and cost-effective without sacrificing the cardinal principle that they are just and fair.

The Commission seeks to simplify procedure to control delays and improve standards of justice. It also promotes an accountable and citizen-friendly government which is transparent and ensures the people’s right to information.

This Commission works under the control of the Ministry of Civil Aviation, the Government of India which administrates its functioning and crosschecking developments.

Aim

1. Major aim to establish the Commission of Railway Safety was to ensure the aspects related to rail travel safety and its operation.
2. The Commission also looks at the specific constitutional functions that had been implemented through the Railways Act (1989).
3. Nature of this Commission’s functioning is carefully inspectorial, investigatory and advisory.

Major factors on which this Commission concentrates include legislative investigation in case of rail accidents and the rules associated with them under the framing of Railways Act.

Other factors like issuing executive instructions on regular intervals for which this Commission was set are also important.

Major duties

1. Major duties of this Commission include that this Commission assures for confirming whether any new railway line opened and planned for operation maintains the safety standards as specified by the Ministry of Railways.
2. The Commission must approve for operation of new line in terms of safety standard whether that is capable to carry passenger traffic or not.
3. Other roles of the Commission are monitoring gauge conversion and crosschecking line doubling besides thorough assessment of the lines and existing line electrification. Commission also conducts inquiry into serious train accidents that might occur any time. It would recommend safety measures to make best possible Railways safety improvement.

The Government of India appointed a Commission after entrusting private companies especially by involving the Consulting Engineers to ensure effective control of the construction and operation of India’s first railways project.

All those Consulting Engineers involved in this project were designated as Government Inspectors on the later stage when the Central Government undertook construction and operation of railways.

Their statutory recognition was completed in the year 1883 in further extension process. The Railway Board placed the entire Railway Inspectorate under it in 1905 upon establishment.

The Railway Board was delegated with its powers and functions under the Indian Railway Board Act, 1905 post its establishment under the Notification No. 801 that dated to March 24, 1905 issued by the Central Government’s Department of Commerce and Industry. It was completed under several sections of the Railway Act with the powers and authorities to create various general rules for effective railway operation.

Since then, this Railway Board acts in the capacity of Safety Controlling Authority to operate and work for both Company managed and Government’s railway operations.

The functions were clearly drawn under the Section 181(3) of the Government of India Act of 1935 to plan them so that safety and security are dealt in clearly in the interest of the public travelling through the railways.

Other functions were proper operation of the railways by ensuring least accidents and most importantly it was assigned to it to hold all inquiries pertaining to the accidents if any and their major and minor causes. This authority was totally independent without any other pressure hence the Federal Railway Authority was formed for such purpose.

Central Legislature permitted the main process to separate Railway Inspectorate in 1940 with the recommendation of placing the Senior Government Inspectors of the Railways under an authority solely administered by the Central Government.

It followed by all Railway Inspectorate being placed to be controlled and administered by the Department of Posts and Air for which May 1941 was the date fixed. It was approached for continuation by any of the Ministries to administer that would be under the Civil Aviation portfolio.

The Commission of Railway Safety is the redesigned form of the former Railway Inspectorate whose inception on 1.11.1961 was revolutionary step.

Functions of Railway Safety Commission

1. Approval of safety
2. Auditing and monitoring safety
3. Enforcement of safety
4. Investigation

The National Commission on Farmers (NCF) has great significance since its inception. Its major aim is to benefit the farmer’s community in this country.

This Commission has played several active roles to guide Indian farmers to organize them for an additional productivity and output through applying the innovating farming options. Creation of National Commission on Farmers was a big leap on November 18, 2004 through which the Indian Government offered a right platform to all agriculturalists for the better accessibility in the farming sector.

Many scholars such as Professor M.S Swaminathan were assigned to lead this Commission as its chairman. The Commission was mandated to work as an observatory body which could suggest proper advices through keeping in consideration multiple priorities from the government’s Common Minimum Program and for the opportunities for a concrete outcome of steps taken.

Composition

Once the National Commission on Farmers was formally recognized, Commission’s body was composed for its functioning. It was designed with the following hierarchical arrangement:

1. Commission Chairman
2. Full-time Members of the Commission
3. Part-time Members of the Commission
4. Member Secretary of the Commission

Mandate

The government mandated the National Commission on Farmers to perform its role as an autonomous body and to do the broad research on the issues which are related to the farmers and offer good solution of problems they were facing in entire country.

Some of the important mandates are mentioned below:

1. Plan an all-inclusive medium-term strategy to ensure that there is best food and nutrition security options for the farmers.
2. Workout suggestions and advises for effective techniques that could ease the productivity enhancement through maximum profitability options and to make things stable.
3. Steps to take for sustaining the major farming systems in the whole country.
4. Taking steps which collaborate between technology and public policy for the better farming outcomes.
5. The Commission to suggest perfect measures which attract and retain the well qualified youths in the farming sector.

University Grants Commission (UGC) was established to augment educational system in India and especially to boost university system in the country for overall growth of higher education.

This body has suggested several improvements in the university system and works extensively to bring the institutions of higher repute into order through constant reforms and by development initiatives.

Central Government established the autonomous statutory body, UGC in 1956 to restructure the university system in the country.

This body has been given special powers to take important decisions from thorough coordination to taking steps for reforms in the education system. UGC takes the steps to determine and maintain university education standards for that its team involves in various stages of inspections in the universities besides providing total support to them.

Important role of UGC is to provide the timely recognition of Indian universities. This body involves in the university system through funding them and the colleges which are recognized by the government. It operates from the headquarters in New Delhi besides Pune, Bhopal, Kolkata, Hyderabad, Guwahati and Bangalore based regional centres.

Formal inauguration of UGC was held by the then Education, Natural Resources & Scientific Research Minister, Maulana Abul Kalam Azad on December 28, 1953 but formal establishment of UGC was held in November 1956. It was constituted under an Act of the Parliament in the year 1956. It has been setup as a crucial body to work as statutory Government body for the reforms.

With its development, UGC had been mandated to work on various grounds to promote education system in the country for those recommendations were suggested before country’s independence in 1945.

The Commission has been given major roles to supervise the functioning of central and state level universities besides all the colleges working under the government.

It works with a Committee system and is entirely entrusted to look into the many affairs of the university education system of the country. It also suggests guidelines for the existing universities and plans for the formation of new ones after systematic research about the need and need fulfilment options. Unique features of UGC functioning is its distinct approach for giving grant to the universities.

Main responsibilities of UGC

1. Provide funds to the universities for their overall growth and development.
2. Helping out the universities for better coordination & maintenance for the fullest of educational standardization as institutions of higher repute.
3. Methodical promotion and best possible coordination for university education system in the country.
4. Ensuring that the teaching, examination and research initiatives are well maintained as per the standards set.
5. UGC must frames proper guideline to maintain education standard through keeping in view minimum standard level.
6. Proper supervision of all sorts of developments in higher education in the universities and colleges and for that it offers them grants for support.
7. This independent body works as an important link which coordinates between the Central and State governments as far as maintaining higher level learning institutes are concerned.
8. Guidance and advisory role for the Central and State governments to take the initiative to improve the education system in the country.

National Commission for Women is also one of the significant statutory bodies established by the Government of India. It was established in 1992 under the provisions of the National Commission for Women Act, 1990.

The Central Government took the initiative to establish this Commission by keeping in view the provisions of India’s constitution to strengthen the women in country through addressing plights, suppressions and other types of violence they use to face.

National Commission for Women also takes the initiatives for overall development of women community in whole country.

Main aim of National Commission for Women is to raise the concern for the women and to represent itself for their rights. This Commission takes into account the issues and concerns of women community and advises for the authentic solution of all the problems they face.

This Commission takes into consideration many common issues associated with women and their repression from dowry to religious or political factors and most importantly their equal representation in job market and other exploitations.

Working of National Commission for Women

National Commission for Women became statutory body and kept taking many steps for the protection of women. It also makes a point to work under the National Commission for Women Act, 1990 which is the key guideline for this Commission to suggest and explore initiatives meant for women and their overall growth.

Composition of National Commission for Women

The Commission shall consist of

(a) A Chairperson, committed to the cause of women, to be nominated by the Central Government.

(b) five Members to be nominated by the Central Government from amongst persons of ability, integrity and standing who have had experience in law or legislation, trade unionism, management of an industry potential of women, women’s voluntary organizations ( including women activist ), administration, economic development, health, education or social welfare;

Provided that at least one Member each shall be from amongst persons belonging to the Scheduled Castes and Scheduled Tribes respectively;

Functions of National Commission for Women

1. Work as the coordinating agency to receive and process all the complaints related to Indian Women deserted by their Overseas Indian husbands.
2. Shall render all possible assistance to the complaints including conciliation, mediation between the parties and advising the complainant on related issues.
3. Associating, networking with NGOs, community organizations in India and overseas and State women Commissions for wider area coverage, so as to assist easy access and provide support services.
4. Shall endeavour towards a coordinated response amongst various Government agencies/organizations such as State Governments, The National Human Rights Commission, Indian Embassies and Mission, concerned Ministries etc.
5. Provide assistance to the distressed woman in litigation and other issues pertaining to the complainant/case.
6. Shall maintain a data bank record of cases registered.
7. Seek reports from the State Government and other authorities on the complaints filed and action taken thereon.
8. Shall advice and recommend the government on any policy or issue relating to the NRI marriages.
9. Investigate various legal treaties on the issue and advice the Government on the subject, wherever required.
10. Shall constitute an advisory committee panel of reputed advocates/NGOs, both in India as well as abroad, which shall intermittently review the functioning of the cell, cases filed and policy issues.
11. Shall constitute a panel of experts (All India) to support the aggrieved wife and rendering legal services and other assistance, including mediation and conciliation
12. Planning of training modules and conducting training on sensitisation on the subject to the various agencies entrusted with the task of providing justice, vig. Judiciary, police, administration, etc.
13. Shall organize awareness campaigns for the masses on the issue.
14. This commission has responsibility to encourage /support research and study in the related field like issues of grievances associated with dual citizenship, enactment of new legislation or signing of international treaties, marriage laws of other countries, etc.
15. NCW must look into complaints and take suo-moto notice on any issue brought to the notice of the NRI Cell in accordance with Section 10 (1)(f) of the National Commission for Women Act , 1990 read with sub-section 4 of Section 10 and Section 8 of the Act.
16. The cell shall control its own procedures in accordance with the National Commission for Women Act 1990.
17. NCW must perform any other function as assigned to it by the Commission/Central Government.

Planning Commission of India is considered as an important institution in India’s governance system. It has major role in country’s economic planning for the overall growth.

Central Government had formed Planning Commission in India as central body to work comprehensively with the consecutive term of five years as country’s Five-Year Plans for economic and social sustenance cum governance.

A historic jump was by the freedom fighter, Netaji Subhas Chanrda Bose in 1938 while he brought an idea of such economic planning which was aimed at country’s independent authority. The first idea came when he was Congress president and insisted for its development.

A Planning Commission had already been established by the British government before India’s independence that was for a short tenure from 1944 to 1946.

After independence, its democratic setup involved industrialists as well as economists to work independently and form development plans. It enhanced country’s economic planning.

First and Subsequent Planning Commissions (India)

India espoused formal model of planning by constituting its 1st Planning Commission after independence on March 15, 1950. This Commission team was authorized to report to Prime Minister directly as first Prime Minister, Pundit Jawaharlal Nehru was its chairman and rest members were supposed to work in synchronization with Deputy Chairman of this Commission.

Main purpose to constitute 1st Five-year Plan and its launch in 1951 was to assure country’s agricultural sector getting more support for timely growth and the complete development. Two more plans were made as succeeding Planning Commissions until 1965 but a break came thereafter due to neighbourhood conflicts between India and Pakistan during that period.

Other issues hindered development of Planning Commission for two more years when country faced drought condition and currency devaluation issues correspondingly. These two issues caused rise in general prices. The 3rd Planning Commission was established from 1966 to 1969 and then things normalized with the setup of 4th Five-year plan starting from 1969.

Since then Five-yearly Planning Commission continued until disruption in the setting up of 8th Plan in 1990 which did not devise due to country’s political volatility. Two years from 1990-91 to 1991-92 were considered for annual plans until setting up of 8th Plan in 1992.

Functions of the Indian Planning Commission

1. To make an evaluation of the material, capital and human resources of the country, including technical employees, and investigate the possibilities of augmenting those are related resources which are found to be deficient in relation to the nation’s requirement.
2. To devise a plan for the most effective and balanced utilisation of country’s resources.
3. To define the stages, on the basis of priority, in which the plan should be implemented and propose the allocation of resources for the due completion of each stage.
4. To specify the factors that tends to retard economic development.
5. To determine the conditions which need to be established for the triumphant execution of the plan within the incumbent socio-political situation of the country.
6. To determine the nature of the mechanism required for securing the successful implementation of each stage of the plan in all its aspects.
7. To evaluate from time to time the improvement achieved in the implementation of each stage of the plan and also recommend the adjustments of policy and measures which are deemed important for successful implementation of the plan.
8. To make required recommendations from time to time regarding those things which are deemed necessary for facilitating the execution of these functions. Such recommendations can be related to the current economic conditions, current policies, measures or development programmes.

In 2014, Prime Minister Narendra Modi announced his objective to dissolve the Planning Commission. It has since been replaced by a new institution named NITI Aayog. NITI Aayog is a Government of India policy think-tank.

The assured aim for NITI Aayog’s formation is to promote involvement and participation in the economic policy-making process by the State Governments of India.

It has adopted a bottom-up approach in planning which is a noteworthy contrast to the Planning Commission’s tradition of top-down decision-making. One of the important directives of NITI Aayog is to bring cooperative competitive federalism and to improve Centre-State relation.

Composition of NITI Aayog

The NITI Aayog comprises the following:

1. Prime Minister of India as the Chairperson,
2. Governing Council comprising the Chief Ministers of all the States and
3. Lt. Governors of Union Territories

Regional Councils formed to address specific issues and contingencies impacting more than one state or a region. These will be formed for a specified tenure.

The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region.

These will be chaired by the Chairperson of the NITI Aayog or his nominee. Experts, specialists and practitioners with relevant domain knowledge as special invitees are nominated by the Prime Minister.

The full-time organizational framework will comprise of, in addition to the Prime Minister as the Chairperson.

Major objectives of The NITI Aayog

1. To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of States in the light of national objectives. The vision of the NITI Aayog will then provide a framework ‘national agenda’ for the Prime Minister and the Chief Ministers to provide impetus to.
2. To promote cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation.
3. To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government.
4. To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy.
5. To pay special attention to the sections of our society that may be at risk of not benefitting adequately from economic progress.
6. To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy. The lessons learnt through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections.
7. To provide advice and support partnerships between key stakeholders and national and international like-minded Think Tanks, as well as educational and policy research institutions.
8. To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners.
9. To offer a platform for resolution of inter-sectorial and inter-departmental issues in order to accelerate the implementation of the development agenda.
10. To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their dissemination to stake-holders.
11. To actively monitor and evaluate the implementation of programmes and initiatives, including the identification of the needed resources so as to strengthen the probability of success and scope of delivery.
12. To focus on technology up-gradation and capacity building for implementation of programmes and initiatives.
13. To undertake other activities as may be necessary in order to further the execution of the national development agenda, and the objectives mentioned above.

Planning Commission was an advisory body, and so is NITI Aayog. Main difference between Planning commission and NITI Aayog is that while the former had powers to allocate funds to ministries and states, this function will be now of finance ministry. 

The role of states in the planning commission era was restricted. The states yearly needed to interact with the planning commission to get their annual plan approved. They had some limited function in the National Development Council.

Since NITI Aayog has all chief ministers of states and administrators of UT in its Governing Council, it is obvious that states are expected to have greater role and say in planning/ implementation of policies.

The CBI owes its origin to the Delhi Special Police Establishment, established in 1941, to enquire into cases of corruption in the procurement during the Second World War.

Later, based on the recommendations of the Santhanam Committee on Prevention of Corruption, CBI was established by a resolution of the Ministry of Home Affairs. Later, it was transferred to the Ministry of Personnel and now it enjoys the status of an attached office.

The CBI is not a statutory body. It derives its powers from the Delhi Special Police Establishment Act, 1946.The CBI is the main investigating agency of the Central Government.

It plays an important role in the prevention of corruption and maintaining integrity in administration. It works under the overall superintendence of Central Vigilance Commission in matters related to the Prevention of Corruption Act, 1988.

Composition of CBI

The CBI is headed by a Director. He is assisted by a Special Director or an Additional Director. Additionally, it has a number of joint directors, deputy inspector generals, superintendents of police and all other usual ranks of police personnel.

The Director of CBI as Inspector-General of Police, Delhi Special Police Establishment, is responsible for the administration of the organization. With the enactment of CVC Act, 2003, the superintendence of Delhi Special Police Establishment vests with the Central Government save investigations of offences under the Prevention of Corruption Act, 1988, in which, the superintendence vests with the Central Vigilance Commission.

The Director of CBI has been provided security of two-year tenure in office by the CVC Act, 2003 (Vineet Narain Case). The CVC Act also provides the mechanism for the selection of the Director of CBI and other officers of the rank of SP and above in the CBI.

The Director of the CBI is appointed by the Central Government on the recommendation of a committee consisting of the Central Vigilance Commissioner as Chairperson, the Vigilance Commissioners, the Secretary to the Government of India in-charge of the Ministry of Home Affairs and the Secretary (Coordination and Public Grievances) in the Cabinet Secretariat.

Organization of CBI

At present (2013), the CBI has the following divisions:

1. Anti-Corruption Division
2. Economic Offences Division
3. Special Crimes Division
4. Policy and International Police Cooperation Division
5. Administration Division
6. Directorate of Prosecution
7. Central Forensic Science Laboratory

Functions of CBI

1. Investigating cases of corruption, bribery and misconduct of Central government employees
2. Investigating cases relating to infringement of fiscal and economic laws, that is, breach of laws concerning export and import control, customs and central excise, income tax, foreign exchange regulations and so on. However, such cases are taken up either in consultation with or at the request of the department concerned.
3. Investigating serious crimes, having national and international ramifications, committed by organized gangs of professional criminals.
4. Coordinating the activities of the anti-corruption agencies and the various state police forces.
5. Taking up, on the request of a state government, any case of public importance for investigation.
6. Maintaining crime statistics and disseminating criminal information.

The CBI is a multidisciplinary investigation agency of the Government of India and undertakes investigation of corruption-related cases, economic offences and cases of conventional crime.

It normally confines its activities in the anti-corruption field to offences committed by the employees of the Central Government and Union Territories and their public sector undertakings.

It takes up investigation of conventional crimes like murder, kidnapping, rape etc., on reference from the state governments or when directed by the Supreme Court/High Courts.

The CBI acts as the “National Central Bureau” of Interpol in India. The Interpol Wing of the CBI coordinates requests for investigation-related activities originating from Indian law enforcement agencies and the member countries of the Interpol.

CBI as ‘Caged Parrot’ and steps to make it free

The SC raised questions on the CBI’s independence while hearing the Coalgate scam case, called it a “caged parrot speaking in its master’s voice”. The SC had then asked the Centre to make the CBI impartial and said it needs to be ensured that the CBI functions free of all external pressures.

In response to this, the Centre filed an affidavit stating following measures it will adopt to ensure the autonomy of the CBI:

1. CBI director will be appointed by a collegium comprising of the Prime Minister, Chief Justice of India and Leader of the Opposition. The CBI director cannot be appointed or removed without the consent of this collegium.
2. The CBI director can be removed on the grounds of misbehavior only by an order from the President after an inquiry.
3. There will be an accountability commission headed by three retired Supreme Court or High Court judges. The committee will look into cases of grievances against the CBI.
4. The affidavit said that CVC will have the power of superintendence and administration over the CBI for all cases to be probed under the Prevention of Corruption Act but such power would vest in the Centre for rest of the cases.
5. A Bill would be introduced in Parliament to ensure financial autonomy to the agency.
6. Sanction for probe: Centre shall take a decision on a request to sanction for probe against officers of the level of Jt. Secretary and above within a period of three months and give reasons if sanction is denied.

Central Vigilance Commission, abbreviated as CVC is a top government body, established in 1964 with the aim of addressing corrupt practices within the government.

The Central Vigilance Commission (CVC) works in coordination with the government authorities for the betterment of the system.

Purpose

1. The main purpose for which this important body had been established was to ensure all sorts of corruptions in government sector could be well prevented and addressed minutely.
2. It is an autonomous body, responsible for monitoring all vigilance activities under the union government.
3. Its major role is to recommend government agencies in “planning, executing, reviewing and reforming” their vigilance capability.
4. Central Government of India formed CVC in the year 1964 as an important body that could take into account the measures and steps to prevent all the corruptions especially the governmental ones for a better system and governance.

CVC has been given several powers including its status to work independently as a major sovereign body which remains free from any type of control from the authorities.

CVC came into existence after the reports submitted by Committee on Prevention of Corruption whose chairperson Mr. K. Santhanam had suggested for the formation of this Commission. Mr. Nittoor Srinivasa Rau was appointed as first Chief Vigilance Commissioner of India.

It must be informed that Central Vigilance Commission is not an investigating agency. It operates in coalition with the CBI or the Departmental Chief Vigilance Officers. The only search that Central Vigilance Commission conducts is that of investigating Civil Works of the government, which is done through the Chief Technical Officer.

Before Central Vigilance Commission can take up investigations into corruption cases against government officials, it has to be approved by the government. The Central Vigilance Commission also publishes list of corrupt officials and recommends punitive action against them.

Appointment

The President of India appoints the Central Vigilance Commissioner and the Vigilance Commissioners on the recommendation of the Prime Minister, Home Minister and the leader of the opposition in the Lok Sabha. It clearly indicates that the appointments to CVC are indirectly under the government’s control.

Is CVC a powerless agency?

CVC is often considered a powerless agency as it is treated as an advisory body only with no power to register criminal case against government officials or direct CBI to initiate inquiries against any officer of the level of Joint Secretary and above.

Although CVC is “relatively independent” in its functioning, it neither has the resources nor the power to take action on complaints of corruption.

Functions and powers of Central Vigilance Commission

With respect to CBI:

• To exercise superintendence over the functioning of the Delhi Special Police Establishment (DSPE) (i.e. CBI)with respect to investigation under the Prevention of Corruption Act, 1988; or offence under CrPC for certain categories of public servants and to give directions to the DSPE for purpose of discharging this responsibility;
• To give directions and to review the progress of investigations conducted by the DSPE into offences alleged to have been committed under the Prevention of Corruption Act;
• As a fallout of the Vineet Narain case, the Supreme Court of India ruled that the Director of the CBI (and Director of Enforcement) should be appointed on the recommendations of a Committee headed by the Central Vigilance Commissioner, the Home Secretary and the Secretary in the Department of Personnel as members. The Committee should also take the opinion of the incumbent Director CBI before forwarding their recommendations to the Appointments Committee of the Cabinet.
• The Committee concerned with the appointment of the Director of CBI is also empowered to recommend, after consultation with the Director (CBI), appointment of officers to the posts of the level of SP and above in DSPE.
• The Committee concerned with the appointment of the Director of Enforcement is also empowered to recommend, after consultation with the Director of Enforcement, appointment of officers to the posts of the level of Deputy Director and above in the Directorate of Enforcement.

With respect to Vigilance:

• To undertake an inquiry or cause an inquiry or investigation to be made into any transaction in which a public servant working in any organization, to which the executive control of the Government of India extends, is suspected or alleged to have acted for an improper purpose or in a corrupt manner;
• To tender independent and impartial advice to the disciplinary and other authorities in disciplinary cases, involving vigilance angle at different stages i.e. investigation, inquiry, appeal, review etc.
• To exercise a general check and supervision over vigilance and anti-corruption work in Ministries or Departments of the Government of India and other organizations to which the executive power of the Union extends; and
• To undertake or cause an inquiry into complaints received under the Public Interest Disclosure and Protection of Informer and recommend appropriate action.
• Respond to Central Government on mandatory consultation with the Commission before making any rules or regulations governing the vigilance or disciplinary matters relating to the persons appointed to the public services and posts in connection with the affairs of the Union or to members of the All India Services
• The Central Government is required to consult the CVC in making rules and regulations governing the vigilance and disciplinary matters relating to the members of Central Services and All India Services.

Its main functions include technical audit of construction works of governmental organizations from a vigilance angle, investigation of specific cases of complaints relating to construction works and assisting CBI in its investigations involving technical matters.

Other functions of Central Vigilance Commission

1. To exercise superintendence over the functioning of the Delhi Special Police Establishment (DSPE) with respect to investigation under the Prevention of Corruption Act, 1988; or offence under CRPC for certain categories of public servants and to give directions to the DSPE for purpose of discharging this responsibility.
2. To review the progress of investigations conducted by the DSPE into offences alleged to have been committed under the PC Act.
3. To undertake an inquiry or cause an inquiry or investigation to be made into any transaction in which a public servant working in any organisation, to which the executive control of the Government of India extends, is suspected or alleged to have acted for an improper purpose or in a corrupt manner.
4. To tender independent and impartial advice to the disciplinary and other authorities in disciplinary cases, involving vigilance angle at different stages i.e. investigation, inquiry, appeal, review etc.
5. To exercise a general check and supervision over vigilance and anti-corruption work in Ministries or Departments of the Govt. of India and other organisations to which the executive power of the Union extends.
6. To chair the Committee for selection of Director (CBI), Director (Enforcement Directorate) and officers of the level of SP and above in DSPE.
7. To undertake or cause an inquiry into complaints received under the Public Interest Disclosure and Protection of Informer and recommend appropriate action.

It can be said that Central Vigilance Commission is an apex Indian governmental body to address governmental corruption. It has the status of an autonomous body, free of control from any executive authority, charged with monitoring all vigilance activity under the Central Government of India. 

Central Vigilance Commission Act, 2003 also empowers the Commission to exercise superintendence over the functioning of the Delhi Special Police Establishment (DSPE) now called Central Bureau of Investigation (CBI).

The Commission is also empowered to review the progress of investigations conducted by the CBI and the progress of applications pending with the competent authorities for grant of sanction for prosecution for offences alleged to have been committed under the Prevention of Corruption Act,1988.

The Commission also exercises superintendence over the vigilance administration of the various organizations under the Central Government.

National Human Rights Commission (NHRC) is a public body constituted for benefiting the citizens of the country. It plays vital roles since its establishment on October 12, 1993.

Human Rights means the rights relating to life, liberty, equality and dignity of the individual guaranteed by the constitution or embodied in the International covenants and enforceable by courts in India.

This Commission was established after the thorough assessment of needs for such bodies to address the human rights related issues and by keeping in consideration the ways and measures to apply for their protection.

The Central Government of India setup the National Human Rights Commission of India in the year 1993 under the Protection of Human Rights Ordinance which was made effective the same year itself.

Protection of Human Rights Act, 1993 (TPHRA) gave this Commission a status of a complete statutory basis to act as a Commission for the fruitful outcome.

National Human Rights Commission has already become an outstanding human rights institution with its national reputation and by performing the main roles to guard rights. It is one of the important responsible groups through creating total awareness and to promote the rights which have been given the key importance in the Act.

Composition of NHRC

National Human Rights Commission is an independent body works broadly and consists of highly knowledgeable team to work in the areas of human rights. The composition of this Commission is:

• The head or chairperson being selected from the judiciary so any Supreme Court Chief Justice to lead the team members.
• Two members are selected from the judiciary out of whom one should be a sitting or former Supreme Court Judge and the other any High Court’s Chief Justice respectively.
• They are the key members besides rest two members whose appointments base on their knowledge level on both practical and theoretical grounds who could give new direction to human rights issues.
• Ex office members of NHRC are the chairpersons of four National Commissions to complete this Commission as a national body.

President appoints chairperson and the members of National Human Rights Commission for which a committee nominates the names. This committee consists of chairperson, the Prime Minister and the members including Home Minister, Leader of the Opposition in Lok Sabha, Leader of the Opposition in Rajya Sabha, Speaker and the Rajya Sabha Deputy Chairman.

Removal of a Member of the Commission

Section 5 of the Protection of Human Rights Act describes the procedures and ground for the removal of the any member of the Commission. . The President may remove the Chairperson or any other Member if he:

1. Is adjudged an insolvent; or
2. Engages during his term of office in any paid employment outside the duties of his office; or
3. Is unfit to continue in office by reason of infirmity of mind or body; or
4. Is of unsound mind and stands so declared by a competent court; or
5. Is convicted and sentenced to imprisonment for an offence, which in the opinion of the President involves moral turpitude.

Additionally, the Chairperson or any other Member of the Commission shall only be removed from his office by order of the President on the ground of proved misbehavior or incapacity.

However, in these cases, the President has to refer the matter to the Supreme Court for an inquiry. If the Supreme Court, after the inquiry, upholds the cause of removal and advises so, then the President can remove the Chairman or a member.

Major issues tackled by NHRC are as follows

1. Custodial Torture
2. Right to Work and Labour Rights
3. Extrajudicial Killings
4. Arbitrary Arrest and Detention
5. Excessive Powers of the Armed Forces and the Police
6. Sexual Violence
7. Conflict-Induced Internal Displacement
8. Child Labour
9. Manual Scavenging
10. Violence and discrimination against Women, Children
11. Lesbian, Gay, Bisexual, Transgender Rights
12. Problems faced by Scheduled Castes and Scheduled Tribes, Religious Minorities, Persons with Disabilities
    

Role of NHRC in safeguarding human rights

Since its development, the NHRC has extensively dealt with issues relating to application of human rights. NHRC has established its reputation for independence and honesty. There is increasing number of complaints addressed to the Commission seeking redressal of grievances. The NHRC has pursued its mandate and priorities with determination and considerable success.

Some of the famous interventions of NHRC include campaigns against discrimination of HIV patients. It also has asked all State Governments to report the cases of custodial deaths or rapes within 24 hours of occurrence failing which it would be assumed that there was an attempt to suppress the incident.

An important intervention of the Commission was related to Nithari Village in Noida, UP, where children were sexually abused and murdered. Recently, NHRC helped to bring out in open a multi crore pension scam in Haryana. It also is looking up the sterilization tragedy of Chattisgarh.

Major functions of NHRC are as follows:

1. 1. Proactively or reactively inquire into infringements of human rights or negligence in the prevention of such violation by a public servant.
   2. By leave of the court, to intervene in court proceeding relating to human rights.
   3. To visit any jail or other institution under the control of the State Government, where persons are detained or lodged for purposes of treatment, reformation or protection, for the study of the living conditions of the inmates and make recommendations.
   4. Review the safeguards provided by or under the Constitution or any law for the time being in force for the protection of human rights and recommend measures for their effective implementation.
   5. Review the factors, including acts of terrorism that inhibit the enjoyment of human rights and recommend appropriate remedial measures.
   6. To study treaties and other international instruments on human rights and make recommendations for their effective implementation.
   7. Undertake and promote research in the field of human rights.
   8. Engage in human rights education among various sections of society and promote awareness of the safeguards available for the protection of these rights through publications, the media, seminars and other available means.
   9. Support the efforts of NGOs and institutions working in the field of human rights.

It is revealed in reports that the international community has acknowledged the increasing importance of strengthening national human rights institutions.

In this context, in the year 1991 an UN-sponsored meeting of representatives of national institutions held in Paris, a detailed set of principles on the status of national institutions was developed, these are commonly known as the Paris Principles.

These principles became the foundation for the establishment and operation of national human rights institutions.

Strengths of NHRC

1. The selection procedure of the members of NHRC is the main factor of its strength. The composition of the Selection Committee is such that it involves members of ruling as well as opposition party and both the Houses of Parliament. Also, the composition of NHRC is such that it involves Legislative, Executive, Judiciary, academicians and NGOs. This gives the Commission a broad vision to deal with the issues of Human Rights.
2. Financial autonomy, though limited, has provided NHRC independence of Central Government. The Commission is free to make its own budget and spend it according to its own planning. The draft of the proposed budget is placed before both the Houses of Parliament and after the approval of the budget, the Government, without making any amendment, has to provide finances to the Commission.
3. The Commission has the power to conduct suo-moto inquiry into the complaints of Human Rights violations.
4. Easy accessibility to the Commission has made it one of the most popular organizations. Anyone can approach NHRC through telephone, letter, application, mobile phone and the Internet. All the documents, reports, newsletters, speeches, etc. of the Commission are also available on this website. The status of the complaint too can be known through its website. The popularity and trust on NHRC is quite evident from the fact that while it had registered only 496 complaints in 1993-94, in 2004-05 the total number of cases were 74,4019.
5. NHRC has advised the government a number of times on the issues of Human Rights. Be it the cases of custodial deaths or suicide by the farmers or health issues or POTA, child marriage, trafficking of women and children etc., the government has been taking suggestions from NHRC.
6. NHRC, in a true democratic fashion, has worked immensely to create awareness among public on Human Rights issues through seminars, workshops, lectures, literature, NGOs’ participation, universities’ collaborations, etc.
7. The Commission has extended its sphere from time to time. Support for right to information, health care issues, disables’ rights, HIV/AIDS patients’ rights etc. are some of the issues where NHRC has worked successfully.

Weaknesses of the Commission

1. In the process of selection of the members of the Commission, the Chairman is not consulted.
2. Because of certain weakness in the Act, at times the Commission feels the need for the amendments. But the Commission has constraints in doing so.
3. Another major weakness of the Commission is that it does not have powers to investigate armed forces, BSF or any other paramilitary forces.
4. Finally, NHRC is only an investigative and recommendatory body. It does not have power of prosecution.
5. It is dependent on the Government for manpower and money. The Central Government shall pay to the Commission by way of grants such sums of money as it may consider fit.

National Consumer Disputes Redressal Commission contributes a lot in the country’s administrative reforms. This Commission has provided numerous guidelines and advises the Government of India on regular intervals for systematizing its functionalities that has made it one of the important bodies for the better and effectual governance in self-governing system.

In 1988, the Government of India established the quasi-judicial National Consumer Disputes Redressal Commission to modernize and improve the system of governance in the whole country. This Commission came into force under the Consumer Protection Act of 1986 whose mandates and rule for implementation needed a thorough assessment and strategy for implementation under a law.

The Consumer Protection Act was passed in 1986 to protect the interests of the consumers. The objective of this law is to provide a simple, fast and inexpensive mechanism to the citizens to redress their grievances in specified cases.

By spelling out the rights and remedies of the consumers in a market so far dominated by organized manufacturers and traders of goods and providers of various types of services, the Act makes the dictum, caveat emptor (‘buyer beware’) a thing of the past.

The Act envisages three-tier quasi-judicial machinery at the National, State and District levels:

1. National Consumer Disputes Redressal Commission – known as “National Commission”;

2. State Consumer Disputes Redressal Commission known as “State Commission”; and

3. District Consumer Disputes Redressal Forum – known as “District Forum”.

The Act also provides for establishment of Consumer Protection Councils at the Union, State and District levels, whose main objectives are to promote and protect the rights of consumers.

Each District Forum is headed by a person who is, has been or is eligible to be appointed as a District Judge and each State Commission is headed by a person who is or has been a Judge of a High Court.

The provisions of this Act cover ‘goods’ as well as ‘services’. The goods are those, which are manufactured or produced and sold to consumers through wholesalers and retailers. The services are in the nature of transport, telephone, electricity, housing, banking, insurance, medical treatment, etc.

A written complaint can be filed before the District Consumer Forum for pecuniary value of up to Rs. twenty lakh, State Commission for value upto Rs. one crore and the National Commission for value above Rs. one crore, in respect of defects in goods or deficiency in service.

The service can be of any description and the illustrations given above are only indicative. However, no complaint can be filed for alleged deficiency in any service that is rendered free of charge or under a contract of personal service.

The remedy under the Consumer Protection Act is an alternative in addition to that already available to the aggrieved persons/consumers by way of civil suit. In the complaint/appeal/petition submitted under the Act, a consumer is not required to pay any court fee, but only a nominal fee.

Consumer Fora proceedings are summary in nature. The endeavor is made to grant relief to the aggrieved consumer as quickly as possible, keeping in mind the provisions of the Act which lay down time schedule for disposal of cases.

If a consumer is not satisfied by the decision of a District Forum, he can appeal to the State Commission. Against the order of the State Commission, a consumer can come to the National Commission.

In order to help achieve the objects of the Consumer Protection Act, the National Commission has also been conferred with the power of administrative control over all the State Commissions by calling for periodical returns regarding the institution, disposal and pendency of cases.

Head office of National Consumer Disputes Redressal Commission is in Delhi and it has been mandated to assess all the issues which are of prime importance as far as redressal aspects are concerned.

This Commission has been empowered with the autonomous power to tackle the issues through keeping in consideration the legal framework from observation to implementation of ideas to taking decisions that can prove highly result oriented for all types of consumer disputes.

National Consumer Disputes Redressal Commission submits its reports to the Central Government on regular intervals. As it is a complete research and analysis body, this Commission has already taken several initiatives which are of the paramount value for redressal purpose.

A sitting or retired judge of the Supreme Court of India heads this Commission to offer the practically oriented reports to the government for implementation.

The National Commission is empowered to issue instructions regarding

1. Adoption of uniform procedure in the hearing of the matters,
2. Prior service of copies of documents produced by one party to the opposite parties,
3. Speedy grant of copies of documents, and
4. Generally over-seeing the functioning of the State Commissions and the District Forums to ensure that the objects and purposes of the Act are best served, without interfering with their quasi-judicial freedom.

There are a large number of laws, which charge the Executive with adjudicatory functions, and the authorities so charged are, in the strict scene, administrative tribunals.

Administrative tribunals are agencies created by specific enactments. Administrative adjudication is a term synonymously used with administrative decision-making.

The decision-making or adjudicatory function is exercised in a variety of ways. However, the most popular mode of adjudication is through tribunals.

Main characteristics of Administrative Tribunals

1. Administrative Tribunal is a creation of a statute.
2. An Administrative Tribunal is vested in the judicial power of the State and thereby performs quasi-judicial functions as distinguished from pure administrative functions.
3. Administrative Tribunal is bound to act judicially and follow the principles of natural justice.
4. It is required to act openly, fairly and impartially.
5. An administrative Tribunal is not bound by the strict rules of procedure and evidence prescribed by the civil procedure court.

Criticisms of Tribunals

1. The tribunal consists of members and heads that may not possess any background of law.
2. Tribunals do not rely on uniform precedence and hence may lead to arbitrary and inconsistent decisions.

Evolution of Tribunals

The growth of Administrative Tribunals, both in developed and developing countries, has been a significant phenomenon of the twentieth century. In India also, innumerable Tribunals have been set up from time to time, both at the center and the states, covering various areas of activities like trade, industry, banking, taxation etc.

The question of establishment of Administrative Tribunals to provide speedy and inexpensive relief to the government employees, relating to grievances on recruitment and other conditions of service, had been under the consideration of Government of India for a long time.

Due to their heavy preoccupation, long pending and backlog of cases, costs involved and time factors, Judicial Courts could not offer the much-needed remedy to government servants, in their disputes with the government. A need arose to set up an institution, which would help in dispensing prompt relief to harassed employees, who perceive a sense of injustice and lack of fair play in dealing with their service grievances. 

This would motivate the employees better and raise their morale, which in turn would increase their productivity.

The First ARC and a Committee under J.C. Shah recommended the establishment of an independent tribunal to exclusively deal with service matters. The same was validated by the Supreme Court in 1980.

The Constitution (through 42ndAmendment Act, Article 323-A) empowered the Parliament to provide for adjudication or trial by Administrative Tribunals of disputes and complaints with respect to recruitment and constitution of service of persons appointed to public service and posts in connection with the affairs of the union or of any state or local or other authority within the territory of India or under the control of the government or any corporation, owned or controlled by the government.

In pursuance of the provisions of Article 323-A of the Constitution, the Administrative Tribunals Bill was introduced in Lok Sabha on 29th January 1985 and received the assent of the President of India on 27th February 1985.

Judicial Review of Cases handled by Tribunals

In S. P. Sampath Kumar case, the Supreme Court directed the carrying out of certain measures with a view to ensuring the functioning of the Administrative Tribunals along constitutionally sound principles. In an amendment the jurisdiction of the Supreme Court under article 32 was restored.

Constitutional validity of the Act was finally upheld in S. P. Sampath Kumar case subject to certain amendments relating to the form and content of the Administrative Tribunals. The suggested amendments were carried out by another amending Act. Thus the Administrative Tribunals became an effective and real substitute for the High Courts.

However, in 1997, a seven-Judge Bench of the Supreme Court in L. Chandra Kumar held that clause 2 (d) of article 323A and clause 3(d) of article 323B, to the extent they empower Parliament to exclude the jurisdiction of the High Courts and the Supreme Court under articles 226/227 and 32 of the Constitution, are unconstitutional.

The Court held that the jurisdiction conferred upon the High Courts under articles 226/227 and upon the Supreme Court under Article 32 of the Constitution is part of the inviolable basic structure of our Constitution.

All decisions of the Administrative Tribunals are subject to scrutiny before a Division Bench of the High Court within whose jurisdiction the concerned Tribunal falls. As a result, orders of the Administrative Tribunals are being routinely appealed against in High Courts, whereas this was not the position prior to the L. Chandra Kumar’s case.

On 18th March 2006, the Administrative Tribunals (Amendment) Bill, 2006 was introduced in Rajya Sabha to amend the Act by incorporating therein, inter alia, provisions empowering the Central Government to abolish Administrative Tribunals, and for appeal to High Court to bring the Act in line with L. Chandra Kumar.

The Department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice in its 17th Report said that the appeal to High Court is unnecessary, and if a statutory appeal is to be provided it should lie to the Supreme Court only. The Law Commission also took up the topic suo-moto and agreed with the opinion put forward by the Parliamentary Standing Committee.

Categories of Tribunals in India

There are four categories of tribunals in India:

1. Administrative bodies exercising quasi-judicial functions, whether as part and parcel of the Department or otherwise.
2. Administrative adjudicatory bodies, which are outside the control of the Department involved in the dispute and hence decide disputes like a judge free from judicial bias . Example: The Income Tax Appellate Tribunal is under the Ministry of Law and not under Ministry of Finance.
3. Tribunals under Article 136 in which the authority exercises inherent judicial powers of the State. Because the functions of the body are considered important over the control, composition and procedure, even Departmental bodies can be classified as Tribunals.
4. Tribunals constituted under Article 323A and 323B having a constitutional origin and enjoying the powers and status of a High Court.

Though the distinction between quasi-judicial and administrative action has become blurred, yet it does not mean that there is no distinction between the two.

In A.K. Kraipak vs. The Union of India, the Court was of the view that in order to determine whether the action of the administrative authority is quasi-judicial or administrative, one has to see the nature of the power conferred, to whom power is given, the framework within which power is conferred and the consequences.

Thus broadly speaking, acts, which are required to be done on the subjective satisfaction of the administrative authority, are called ‘administrative’ acts, while acts, which are required to be done on objective satisfaction of the administrative authority, can be termed as quasi-judicial acts.

Administrative decisions, which are founded on pre-determined standards, are called objective decisions whereas decisions which involve a choice, as there is no fixed standard to be applied are so called subjective decisions.

The former is a quasi-judicial decision, while the latter is an administrative decision. In case of an administrative decision, there is no legal obligation, upon the person charged with the duty of reaching the decision, to consider and weigh submissions and arguments or to collate any evidence.

However, the Supreme Court observed, “It is well settled that the old distinction between a judicial act and administrative act has withered away and we have been liberated from the pestilent incantation of administrative action.”

Important quasi-judicial bodies in India are as under

1. National Human Rights Commission
2. State Human Rights Commission
3. Central Information Commission
4. State Information Commission
5. National Consumer Disputes Redressal Commission
6. State Consumer Disputes Redressal Commission
7. District Consumer Disputes Redressal Forum
8. Competition Commission of India
9. Appellate Tribunal for Electricity
10. State Electricity Regulatory Commission
11. Railway Claims Tribunal
12. Income Tax Appellate Tribunal
13. Intellectual Property Appellate Tribunal
14. Central Excise and Service Tax Appellate Tribunal
15. Banking Ombudsman
16. Insurance Ombudsman
17. Income tax Ombudsman
18. Electricity Ombudsman
19. State Sales tax Appellate Tribunal

Quasi-judicial bodies are institutes which have powers analogous to that of the law imposing bodies but these are not courts.

They primarily oversee the administrative zones. The courts have the power to supervise over all types of disputes but the quasi-judicial bodies are the ones with the powers of imposing laws on administrative agencies.

These bodies support to lessen the burden of the courts. Quasi-judicial activity is restricted to the issues that concern the particular administrative agency. Quasi-judicial action may be appealed to a court of law.

These organizations generally have authorities of settlement in matters like breach of discipline, conduct rules, and trust in the matters of money or otherwise.

Their powers are usually limited to a particular area of expertise, such as financial markets, employment laws, public standards, immigration, or regulation.

Awards and judgements of quasi-judicial bodies often depend on a pre-determined set of rules or punishment depending on the nature and gravity of the offence committed.

Such punishment may be legally enforceable under the law of a country it can be challenged in a court of law which is the final vital authority.

Emergence of Quasi-Judicial Bodies in India

1. As the welfare state has grown up in size and functions, more and more litigations are pending in the judiciary, making it over-burdened. It requires having an alternative justice system.
2. Ordinary judiciary has become dilatory and costly.
3. With scientific and economic development, laws have become more complex, demanding more technical knowledge about specific sectors.
4. The conventional judiciary is suffering from procedural rigidity, which delays the justice.
5. Further, a bulk of decisions, which affect a private individual come not from courts, but from administrative agencies exercising ad judicatory powers.

Financial Inclusion in India

Financial Inclusion is about

1. The broadening of financial services to those people who do not have access to financial services.
2. The deepening of financial services for people who have minimal financial services.
3. Greater financial literacy and consumer protection so that people can make appropriate choices.
4. The importance of FI is both a moral one as well as economic efficiency one.

The need for Financial Inclusion

Reasons for Limited Success

How to Take Financial Inclusion Further?

                                Pradhan Mantri Jan Dhan Yojana

Jan Dhan Yojana was launched in 2014 to bring financial inclusion in India. The important features of Jan Dhan Yojana include

Zero Balance Account 

• The accounts under PMJDY will be zero balance accounts which mean account holders do not need to maintain any bank balance. Most regular bank accounts require that a minimum balance which might vary from Rs 500 to Rs 5000 will have to be maintained in the bank account failing which a penalty will have to be the customer.
• In April this year , RBI announced that banks could no longer charge a penalty for non-maintenance of average quarterly balance, this was after it received complaints from bank account holders that their bank balances had disappeared over several months. Keeping this in mind , banks have now introduced zero balance accounts under Pradhan Mantri Jan Dhan Yojana.

Insurance Cover of Rs 1 Lakh along with Rupay Cards

• All account holders will receive a Rupay Debit Card so that they can withdraw money from any ATM and also use it to make payments at merchant establishments.
• Each Rupay Card will also insure the Card Holder with accident insurance of up to Rs 1 Lakh from HDFC Ergo and Medical Insurance of up to Rs 30,000 for sick account holders. This money could be used for treatment and pay medical bills when the need arises.

Pass Book and Cheque Books

• Some Banks are issuing additional pass books and cheque books to some users if they make an additional payment of Rs 100 to Rs 500. This is an additional feature and can be availed by account holders only if they feel the need for it.

Direct Benefit Transfers

• Another valuable feature of Pradhan Mantri Jan Dhan Yojana is that bank accounts which are linked to Aadhaar ID’s can avail government subsidies by electronic transfer directly into their accounts. For Example, The government might transfer food subsidies, it provides to ration card holders directly into their bank account.

Overdraft / Loan 

• Overdraft facility of Rs 5000 will be provided to account holders who transact regularly using their rupay card and maintain a good balance in their bank accounts.

Progress under PMJDY

• As many as 20.38 crore bank accounts were opened under the PMJDY as per the latest data available. These 20.38 crore bank accounts had deposits of Rs 30,638.29 crore.
• As per trends available, the percentage of accounts with ‘Zero Balance’ have actually shown a significant decline. Accounts with no balance in them were as high as 76.81 per cent of the total opened under the scheme as on September 30, 2015. They have come down to just about 32 per cent at the end of December 2015.
• The Finance Ministry data further showed that 8.74 crores of the accounts were seeded with Aadhaar and 17.14 crore account holders were issued RuPay cards.
• As on January 15, 2016, banks had offered 53.54 lakh account holders overdraft facility of which the sanction was issued for 27.56 lakh cases, and 12.32 lakh account holders availed it. The total amount availed was Rs 166.7 crore.

Payment Banks

What is the main objective of a Payments Bank?

• Let us consider an example – You pay salary to your Car driver in cash because he does not have a bank account. Individuals like him generally send money to his family members (who might be residing in his native place, a small village) through known people or he may use Money-order facility to remit the cash. But, more and more people like him are becoming mobile phone savvy. The payments Banks applicants will look to unbanked people like your car driver as low-hanging fruit to harvest as their first customers.
• (India has around 90 crore mobile users and out of which around 70 crores are active users. The total no of mobile subscribers in rural areas are 38 crores)
• Don’t get surprised if your neighbourhood supermarket or even your mobile phone can soon be doubled up as a Bank.
• So, the main objective of Payments Banks is to increase financial inclusion (to get more people into the banking system) by providing Small Savings Accounts, Payment or remittance services to low-income households / labour, small businesses etc.,
• Payments banks will provide basic banking services to people who currently do not have a bank account, including millions of migrant workers. Almost half of India’s population is unbanked.
• These banks will aim at providing high volume-low value transactions in deposits and Payments / remittance services in a secured technology-enabled environment.

Why do we need Payment bank?

• As discussed above, payments bank allow you only to open savings and current accounts. But doesn’t a normal bank allow you to do that even now? Yeah, but the difference is a payments bank can now be your mobile service provider, supermarket chain or a non-banking finance company. (Bharti Airtel, with 20 crore subscribers, has nearly the same number of customers as State Bank of India. The transactions done through mobile wallets have tripled over the last two years to Rs 2,750 crore.)
• Payment banks may make handling cash a lot easier. For example, you can transfer money using your mobile phone to another bank or to another mobile phone holder and also receive amounts through your device. Or you can transfer the amount to point-of-sale terminals at large retailers and take out cash.
• Payment banks will pay an interest rate on savings accounts.
• The deposits are covered by the DICGC (Deposit Insurance & Credit Guarantee Corporation), like your Bank Fixed Deposits.

Challenges Faced by Payment bank

• The impact of these banks is not guaranteed, and they will face the same hurdles as any financial services provider that aims to serve the country’s low-income, rural communities. If it were simple to serve these customers, India’s previous Business Correspondent efforts – not to mention its experience with private services like M-PESA, which captures almost every payment in countries like Kenya and Tanzania – would have met with more resounding success.
• A payment bank will be working on a thin margin. They are expected to go to the hinterland and tap the consumer base there. This is a cost-heavy structure and, therefore, financial viability for a bank will not be easy.

Small Banks

What is a small bank?

• Small finance banks are a type of niche banks in India. Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending.
• The main purpose of the small banks will be to provide a whole suite of basic banking products such as bank deposits and supply of credit but in a limited area of operation. The objective for these Small Banks is to increase financial inclusion by the provision of savings vehicles to underserved and unserved sections of the population, the supply of credit to small farmers, micro and small industries, and other unorganized sector entities through high technology-low cost operations.

Why there is a need for small banks?

• India has seven branches per 100,000 population compared with 40 branches per 100,000 population in developed countries.
• The financial inclusion aims to have one bank account per member of the family. But, there are many families those have adult members without a bank account. Cent per cent financial literacy means one bank account per adult. Small banks can tap this population.
• Independent studies have revealed that around 90 per cent of the micro and small businesses have no access to the formal mainstream financial institutions. Since their ticket size is small, these banks can bring micro and small entrepreneurs into their fold.
• The main purpose of the small banks will be to provide a whole suite of basic banking products such as bank deposits and supply of credit but in a limited area of operation. The objective for these Small Banks is to increase financial inclusion by the provision of savings vehicles to underserved and unserved sections of the population, the supply of credit to small farmers, micro and small industries, and other unorganized sector entities through high technology-low cost operations.
• Many people in rural areas lend or deposit their hard-earned monies with money lenders and financiers. Chit funds are also very popular. The main reason for all these things is that they do not have access to banks. Small Banks can change this scenario as According to the guidelines, at least 50% of a small bank’s loan portfolio should constitute loans and advances of up to Rs.25 lakh. Which means loans will be smaller in size.
• The opening of small Banks would also increase competition in the Banking sector which could improve Monetary transmission for example Recently; RBI had cut the key policy rates. But, bank customers have not yet benefited from these interest rate cuts. Most of the banks have not yet passed on the benefits to its customers as they have an informal understanding with other Banks. However, they are fast enough to reduce deposits rates though. This situation could improve if more competition is introduced in the banking sector

Challenges Small Banks will face

• Nowhere in the world so far have small banks been a roaring success. In the US, where they are called community banks, a few are doing well, such as State Bank of Texas and Prinz Bank, but overall, they hold less than 15 per cent of the country’s total banking assets.
•  Small banks, apart from extending credit, will also have the job of mobilizing deposits. This requires inspiring immense trust. Neither MFIs nor NBFCs have experience in this aspect. “Building a retail deposit portfolio is a big challenge where existing public and private sectors banks have an advantage because of their strong brands.
• 75% of net credits of small banks should be in the Priority Sector lending. However, the issue really is that priority sector loans tend to become vulnerable to becoming non-performing assets (NPAs) with the propensity being higher for them. In the past, the NPA ratio for priority sector loans has ranged from 4-5% while that of the non-priority sector has been around 3%. Thus this can affect the financial stability of the small banks.
• The challenge would be to control NPAs here, as an unfavourable monsoon would have an impact on farm loans. Similarly, any slowdown in the industrial sector is first felt on the small and medium-sized enterprises (SMEs), which have payments problems. Therefore, on both scores, they would be at a disadvantage compared with the commercial banking system.
• Banks are able to diversify their portfolio by lending to all sectors which include retail, services and manufacturing, while these banks would be left with dealing with the smaller ones only. Besides, given that these accounts would be small and well dispersed, the cost of monitoring would also be higher for them.

By
Himanshu Arora
Doctoral Scholar in Economics & Senior Research Fellow, CDS, Jawaharlal Nehru University

A regulatory body also called regulatory agency is a public authority or a government agency which is accountable for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity.

It is established by legislative act in order to set standards in a specific field of activity, or operations, in the private sector of the economy and to then implement those standards. Regulatory interventions function outside executive observation.

Because the regulations that they adopt have the force of law, part of these agencies’ function is essentially legislative; but because they may also conduct hearings and pass judgments concerning adherence to their regulations, they also exercise a judicial function often performed before a quasi-judicial official called an administrative law judge, who is not part of the court system.

Some independent regulatory agencies perform investigations or audits, and some are authorised to fine the important parties and order certain measures.

The notion of the regulatory agency was initiated in the USA and it has been basically an American establishment. The first agency was Interstate Commerce Commission (ICC), established by Congress in 1887 to control the railroads.

It was stopped in 1996 but long served as the model of such an agency. Initially, the ICC was to serve only as an advisory body to Congress and the courts, but it was soon granted these powers itself. Furthermore, an independent commission could be unbiased and nonpartisan, a necessity for impartial regulation. The ICC was the first step taken to control industries instead of taking each on a case-by-case basis, as had been previously done.

The proclamation of governmental control in other industries led to the formation of many other regulatory agencies modelled upon the ICC, chief among these being the Federal Trade Commission (FTC, 1914), Federal Communications Commission (FCC, 1934), and Securities and Exchange Commission (SEC, 1934). Additionally, regulatory powers were convened upon the ordinary executive departments.

The functions of the FTC illustrate those of regulatory agencies in general. It supervises the packaging, labelling, and advertising of consumer goods. It applies broadly stated legislative policies to concrete cases of trade competition by a procedure patterned after that of the courts.

It grants licenses to those interested in export business. It also regulates collection and circulation of credit information. Regulatory agencies use a commission system of administration, and their terms of office are fixed and often very long.

All nations outside the USA, the role of regulatory agencies is taken by the regular administrative departments of government and, in the case of utilities and public transportation, often by means of state ownership.

Regulatory agencies are generally a part of the executive branch of the government, or they have statutory authority to execute their functions with oversight from the legislative branch. Their actions are generally open to legal review. Regulatory authorities are usually established to implement standards and safety, or to oversee use of public goods and regulate business.

Important Regulatory bodies are as under

1. Advertising Standards Council of India
2. Competition Commission of India
3. Biodiversity authority of India
4. Press Council of India
5. Directorate General of Civil Aviation
6. Forward Markets Commission
7. Inland Waterways Authority of India
8. Insurance Regulatory and Development Authority
9. Reserve Bank of India
10. Securities and Exchange Board of India
11. Telecom Disputes Settlement and Appellate Tribunal
12. Telecom Regulatory Authority of India
13. The Food Safety and Standards Authority of India (FSSAI)
14. Central pollution control board
15. Financial Stability and Development Council
16. Medical Council of India
17. Pension Fund Regulatory and Development Authority

Non-Banking Financial Companies

• A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
• A non-banking institution which is a company and has a principal business of receiving deposits under any scheme or arrangement in one lump sum or in instalments by way of contributions or in any other manner is also a non-banking financial company (Residuary non-banking company).

NBFCs are doing functions similar to banks. What is the difference between banks & NBFCs?

NBFCs lend and make investments, and hence their activities are akin to that of banks; however, there are a few differences as given below:

1. NBFC cannot accept demand deposits;
2. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
3. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
4. Unlike Banks which are regulated by the RBI, the NBFCs are regulated by multiple regulators; Insurance Companies- IRDA, Merchant Banks- SEBI, Micro Finance Institutions- State Government, RBI and NABARD.
5. The norm of Public Sector Lending does not apply to NBFCs.
6. The Cash Reserve Requirement also does not apply to NBFCs.

Classification and Categorization of NBFCs