National Commission for Backward Classes(NCBC)
27-Jun-2017: Parliamentary panel builds consensus to grant constitutional status to NCBC
A parliamentary panel has arrived at a consensus on a bill to accord constitutional status to the National Backward Classes Commission (NCBC), paving the way for its likely passage in the Rajya Sabha in the Monsoon Session beginning next month.
The bill, which was passed by the Lok Sabha in April, was referred to the Rajya Sabha’s Select Committee after the opposition parties blocked its passage in the Upper House.
Consensus has been arrived at among the members of the committee with the MPs of all the parties agreeing on according constitutional status to the commission.
NCBC is currently a statutory body under the Ministry of Social Justice and Empowerment.
The panel, led by BJP MP Bhupender Yadav, will submit its report in the first week of the Monsoon Session of Parliament, which is likely to commence on July 17.
The 25-member Rajya Sabha Select Committee includes seniors like Sharad Yadav, Ram Gopal Yadav, Satish Misra and Praful Patel.
Yadav has, in the past also, successfully convinced all the parties to agree on many controversial legislations, including the GST Bill, the Mines and Minerals Bill and the Enemy Property Bill.
The BJP general secretary was also the Chairman of the Joint Committee on Insolvency and Bankruptcy Code, 2015.
Financial Resolution and Deposit Insurance Bill 2017
14-Jun-2017: Cabinet approves proposal to introduce the Financial Resolution and Deposit Insurance Bill 2017
The Union Cabinet has approved the proposal to introduce a Financial Resolution and Deposit Insurance Bill, 2017. The Bill would provide for a comprehensive resolution framework for specified financial sector entities to deal with bankruptcy situation in banks, insurance companies and financial sector entities.
The Financial Resolution and Deposit Insurance, Bill 2017 when enacted, will pave the way for setting up of the Resolution Corporation. It would lead to repeal or amendment of resolution-related provisions in sectoral Acts as listed in Schedules of the Bill. It will also result in the repealing of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 to transfer the deposit insurance powers and responsibilities to the Resolution Corporation.
The Resolution Corporation would protect the stability and resilience of the financial system; protecting the consumers of covered obligations up to a reasonable limit; and protecting public funds, to the extent possible.
The Government has recently enacted the Insolvency and Bankruptcy Code, 2016 ("Code") for the insolvency resolution of non- financial entities. The proposed Bill complements the Code by providing a resolution framework for the financial sector. Once implemented, this Bill together with the Code will provide a comprehensive resolution framework for the economy.
The Financial Resolution and Deposit Insurance Bill, 2017 seeks to give comfort to the consumers of financial service providers in financial distress. It also aims to inculcate discipline among financial service providers in the event of financial crises by limiting the use of public money to bail out distressed entities. It would help in maintaining financial stability in the economy by ensuring adequate preventive measures, while at the same time providing the necessary instruments for dealing with an event of crisis. The Bill aims to strengthen and streamline the current framework of deposit insurance for the benefit of a large number of retail depositors. Further, this Bill seeks to decrease the time and costs involved in resolving distressed financial entities.
Preventive detention
1-June-2017: Preventive detention no quick fix
Supreme Court of India, in a case, has observed that preventive detention of a person by a State after branding him a ‘goonda’ merely because the normal legal process is ineffective and time-consuming in ‘curbing the evil he spreads’ is illegal.
Detention of a person is a serious matter affecting the liberty of the citizen. The Article 22 (3) of the Indian constitution provides that if a person is arrested or detained under a law providing for preventive detention, then the protection against arrest and detention under Article 22 (1) and 22 (2) shall not be available. Hence, preventive detention cannot be resorted to when sufficient remedies are available under the general laws of the land for any omission or commission under such laws. The grounds for Preventive detention are security of state, maintenance of public order, maintenance of supplies and essential services and defence and foreign affairs or security of India.
The order of preventive detention, though based on the subjective satisfaction of the detaining authority, is nonetheless a serious matter, affecting the life and liberty of the citizen under Articles 14, 19, 21 and 22 of the Constitution. The power being statutory in nature, its exercise has to be within the limitations of the statute, and must be exercised for the purpose the power is conferred. If the power is misused, or abused for collateral purposes, and is based on grounds beyond the statute, takes into consideration extraneous or irrelevant materials, it will stand vitiated as being in colourable exercise of power.